Homburg Invest provides update on restructuring process and introduces Geneba Properties N.V. and its supervisory board

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MONTREAL, July 4, 2013 /CNW Telbec/ - Homburg Invest Inc. ("Homburg Invest" or the "Company") wishes to provide an update to its creditors on the Company's restructuring process under the Canadian Companies' Creditors Arrangement Act ("CCAA"), including the revised timing for plan implementation and additional information in respect of  "Newco".

Plan Implementation

On May 30, 2013, an overwhelming majority of the affected creditors of the Company and Homburg Shareco Inc. ("Shareco") approved the Second Joint Amended and Restated Plan of Compromise and Reorganization filed by HII/Shareco (as amended and restated from time to time, "HII/Shareco Plan") and the Amended and Restated Plan of Compromise and Reorganization of Homco Realty Fund (61) Limited Partnership (as amended and restated from time to time, "Homco 61 Plan") was unanimously approved by the affected creditors of Homco 61 (the HII/Shareco Plan and the Homco 61 Plan are hereinafter collectively referred to as the "Plans").  On June 5, 2013, the Superior Court of Québec (Commercial Division) (the "Court") sanctioned the Plans.

As disclosed in greater detail in the Plans and the meeting materials circulated to the creditors including the Information Circular, there are numerous conditions precedent to implementation of the Plans. These include, without limitation, the conclusion of satisfactory arrangements with the mortgage lenders of the Core Business Assets (as they are defined in the Plans); regulatory approvals; the issuance of a license from the Dutch securities regulator, the Autoriteit Financiële Markten (the "AFM"); and certain confirmations from both Dutch and Canadian tax authorities.

In addition, the Company and its advisors are reviewing and implementing the regulatory consequences of the enthusiastic response of the creditors to the option provided by The Catalyst Capital Group Inc. ("Catalyst") which resulted in Newco being almost 50% Canadian owned.

Although the Company and the monitor have dedicated and continue to dedicate on a daily basis significant time, effort and resources to dealing with all these outstanding conditions precedent and matters are in fact progressing well, there are certain authorizations and consents which must be obtained from third parties and which are still outstanding and the Company will therefore not be in a position to implement the Plans on or about July 3, 2013, the initial target date.

The Company is currently planning for an implementation date of the Plans to occur in late August of 2013 and will be applying to the Court to extend the CCAA stay of proceedings until the end of August. It is not expected that this additional time to implement the Plans will result in any material increase in costs.

The Company understands that Catalyst continues to support the restructuring, in accordance with the Plans and its agreement with the Company, and expects that Catalyst will provide the funding for its option to the monitor for payment to the creditors under the Plan within 10 days following its implementation.

Newco

The Company also announced today that the name of the new corporate entity referred to in the Company's prior disclosure as "Newco" has now been chosen. Newco will be called Geneba Properties N.V. ("Geneba"), combining the names of the three jurisdictions in which it will hold its assets: Germany, the Netherlands and the Baltic States.

More information about Homburg Invest's CCAA restructuring process can be found on the website of the Monitor at http://www.deloitte.com/ca/homburg-invest.

About Homburg Invest
Homburg Invest owns a diversified portfolio of commercial real estate including office, retail, industrial and development properties throughout Canada, Europe and the United States.

Forward-Looking Statements
This press release contains forward-looking information within the meaning of Canadian securities legislation. Forward-looking information or statements can be identified by use of forward-looking words such as "will", "plans", "expects" or the negative thereof or similar variations. The actual outcome of the events described using these statements could differ materially from that expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, the outcome of the ongoing restructuring process, delays in the CCAA proceedings, general economic and market factors, changes in government regulation and the factors described from time to time in the documents filed by Homburg Invest with the securities regulatory authorities in Canada including, in particular, the information circular sent by Homburg Invest to its creditors, a copy of which is also available on SEDAR at www.sedar.com. This cautionary statement qualifies all forward-looking statements attributable to Homburg Invest and persons acting on its behalf. Unless otherwise stated or required by applicable law, all forward-looking statements speak only as of the date of this press release and Homburg Invest disclaims any obligation to update such statements.

SOURCE: Homburg Invest

For further information:

Media:

Canada
Caroline Martel
NATIONAL Public Relations
Tel.: (514) 843-2313
cmartel@national.ca

The Netherlands
Heleen Jansen
Cohn & Wolfe
Tel.: 0031 (0)20 6768666
heleen.jansen@cohnwolfe.nl

Profil de l'entreprise

Homburg Invest

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