Homburg Invest Inc. - Homburg invest provides update to holders of its corporate bonds and mortgage bonds

/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 process;

  • 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 Bondholders:

Mortgage Bonds
Bond Series Maturity Interest Rate
HMB4 November 30, 2011 7.50%
HMB5 December 31, 2011 7.50%
HMB6 June 30, 2012 7.50%
HMB7 June 30, 2012 7.25%
     
Corporate non-asset backed Bonds
Bond Series Maturity Interest Rate
HB8 May 31, 2013 7.00%
HB9 October 31, 2013 7.00%
HB10 February 15, 2014 7.25%
HB11 January 15, 2015 7.25%

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 representatives.

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 can support.

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:

Media: 

Canada
Caroline Martel
NATIONAL Public Relations  
(514) 843-2313
cmartel@national.ca
Netherlands
Heleen Jansen
Cohn & Wolfe
Tel 0031 (0)20 6768666
heleen.jansen@cohnwolfe.nl

 

Profil de l'entreprise

HOMBURG INVEST INC.

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