/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
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".
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
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.
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.
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:
NATIONAL Public Relations
Tel.: (514) 843-2313
Cohn & Wolfe
Tel.: 0031 (0)20 6768666