/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
MONTREAL, Sept. 29, 2011 /CNW Telbec/ - Homburg Invest Inc. (TSX: HII.A;
HII.B; NYSE Euronext Amsterdam: HII) ("Homburg Invest" or the
"Company") today provided additional information and clarifications
intended to assist holders of its corporate bonds and its mortgage
bonds (together, the "Bondholders") in understanding the
court-supervised process under the Canadian Companies Creditors Arrangement Act ("CCAA") and their rights in this process.
Homburg Invest's Chief Executive Officer, Jan Schöningh, stated: "We
understand that the CCAA process may be unfamiliar to some and we would
like to do as much as possible to ensure that all stakeholders have
access to all relevant information and are aware of how to obtain
answers to any additional questions they may have. The input and
support of Bondholders will be essential to achieving a successful
restructuring of Homburg Invest."
This press release provides information regarding the following:
The series of mortgage bonds and corporate bonds affected by the CCAA
The CCAA process and where to obtain additional information about this
process including the Monitor's contact information;
An online interactive information session (webcast) during which Homburg
Invest will provide further details about the CCAA process and how it
affects mortgage and corporate bondholders. Details and dates will be
provided in future communications;
An update on the delisting of the Company from the TSX, on discussions
with the Netherlands Authority for Financial Markets (AFM) and proposed
next steps for Bondholders.
Who Is Affected?
This information will be particularly relevant to the following
November 30, 2011
December 31, 2011
June 30, 2012
June 30, 2012
Corporate non-asset backed Bonds
May 31, 2013
October 31, 2013
February 15, 2014
January 15, 2015
What is "CCAA"?
The Companies' Creditors Arrangement Act (CCAA) is a Canadian law which provides a framework allowing
corporations in financial difficulty to restructure their business and
financial affairs while maintaining operations. The main goal of CCAA
proceedings is ensuring a successful restructuring that is in the best
interest of Homburg Invest's creditors, including the Bondholders. It
is not a bankruptcy proceeding.
The court-ordered protection under the CCAA process is frequently used
by Canadian issuers in financial difficulty. Companies who seek CCAA
protection regularly emerge from this process having successfully
restructured their business. CCAA protection allows Homburg Invest time
to develop a restructuring plan that maximizes the benefit to its
creditors including its largest groups of creditors, the Bondholders.
The CCAA process is carried out under the supervision of the Superior
Court, which appoints a Monitor to oversee proceedings. Samson Bélair /
Deloitte & Touche Inc. ("Deloitte & Touche") is the independent,
Court-appointed Monitor that will oversee Homburg Invest proceedings
under the CCAA. The Monitor provides oversight of Homburg Invest's
business and assists the Company in preparing its restructuring plan;
the Monitor provides updates on the progress of Homburg Invest's
restructuring plan to the court and to creditors, including
Bondholders. Deloitte & Touche will post all Court applications and
orders as well as a copy of its reports to the Court and its contact
information on its website at the following address: http://www.deloitte.com/ca/homburg-invest.
Homburg Invest is hopeful to complete the CCAA process during the next
few months and is looking forward to developing a restructuring plan
with active support from the Bondholders or their chosen
Once a restructuring plan is completed, it will be submitted to
Bondholders for approval. Under the CCAA, shareholders are not entitled
to vote in respect of the restructuring plan.
Homburg Invest launched a website with additional information about the
CCAA process on September 12. As previously announced, the address of
this new website is: www.homburginvestinformation.ca or www.homburginvestinformatie.nl. There is also a toll-free information line that Dutch residents may
call to receive additional information about the CCAA process. The toll-free number for this information line is: 0800 023 0323.
Information Session - WEBCAST
Moving forward, Homburg Invest is now planning to hold an online
information session to provide further details about the CCAA process
and how it affects mortgage and corporate bond holders. Viewers of the
webcast will be able to submit their written questions to the
panellists, who will include Jan Schöningh, Chief Executive Officer of
Homburg Invest, the Company's legal counsel and a representative of
Deloitte & Touche (the Court-appointed Monitor). Details of the
information session will be communicated when dates are confirmed.
In the meantime, Homburg Invest invites interested participants to
submit their questions prior to the webcast session using the contact
form that can be found at www.homburginvestinformation.ca under the contact page. Please indicate "webcast" in the first line of
the message and questions will be submitted for the online session.
Any questions not answered online will be answered by email in the days
following the webcast. The webcast will be recorded and made available
on the information website (www.homburginvestinformation.ca or www.homburginvestinformatie.nl) following the live broadcast.
Delisting of the Company's securities on TSX
Homburg Invest has also been advised that the Continued Listings
Committee of the Toronto Stock Exchange ("TSX") has determined to
delist the Company's securities effective at the close of market on
October 20, 2011. The delisting was imposed for failure by the Company
to meet the continued listing requirements of TSX relating to the
initiation of insolvency proceedings and the Company's financial
condition, as is standard in the context of a CCAA filing. Trading in
the Company's securities on the TSX is currently suspended and will
remain suspended until the securities are delisted. After delisting,
the Company will nevertheless remain a reporting issuer in Canada,
subject to continuous disclosure obligations of public companies.
Discussions with the Dutch AFM
As previously announced, Homburg Invest has objected to the intention of
the Authority for the Financial Markets in the Netherlands to withdraw
Homburg Invest's licence as an investment company. Homburg Invest has
now made formal written submissions to the AFM requesting that the AFM
reconsider its proposal to revoke Homburg Invest's licence. Homburg
Invest has emphasized that maintaining Homburg Invest's licence will
allow it to consider the widest number of potential alternatives for
creditors, including Bondholders, as part of the restructuring process.
Maintaining the licence is important in that it would allow Homburg
Invest to issue new equity in the Netherlands as part of the
restructuring process. The Monitor is supporting Homburg Invest's
initiatives in this regard.
Next Steps for Bondholders
Given their importance to the restructuring process, Homburg Invest
encourages Bondholders to attend the online information session, to
submit written questions, and to consult any court filings and other
relevant information through the Monitor's website. Bondholders who
wish to receive information directly about the online information
session or ask questions about the Company or the CCAA process should
contact the Company through Homburg Invest's information website at www.homburginvestinformation.ca or www.homburginvestinformatie.nl, clicking on "Contact Us" and completing the Contact Form.
Homburg Invest is looking forward to working with the Bondholders to
develop a restructuring plan that is satisfactory to them and that they
About Homburg Invest
Homburg Invest Inc. owns and develops a diversified portfolio of quality
commercial real estate including office, retail, industrial and
development properties throughout Europe and the United States, as well
as an interest in Canmarc Real Estate Investment Trust.
SOURCE HOMBURG INVEST INC.
For further information: