/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
MONTREAL, Dec. 2, 2013 /CNW Telbec/ - Homburg Invest Inc. ("Homburg Invest" or the "Company") today provided an update to its creditors on the Company's
restructuring process under the Canadian Companies' Creditors Arrangement Act ("CCAA"), including the revised timing and additional information regarding
the implementation of the Third Amended and Restated Plan of Compromise
and Reorganization of Homburg Invest Inc. and Homburg Shareco Inc. (the
"Plan"). The Company has obtained an order (the "Order") from the Superior Court of Québec (Commercial Division) (the "Court") under the CCAA further extending the CCAA protection granted to
Homburg Invest and certain of its affiliates until January 17, 2014.
As disclosed in greater detail in the Plan, there are numerous
conditions precedent to implementation of the Plan. The principal
remaining condition is the issuance of a licence from the Dutch
securities regulator, the Autoriteit Financiële Markten (the "AFM").
AFM licence application
As previously disclosed, in light of the enactment on July 22, 2013 of
the European Alternative Investment Fund Managers Directive and of the
three Level 2 Regulations supplementing it, Homburg Invest and Geneba
Properties N.V. ("Geneba") were required to amend certain documents already filed with the AFM
and file additional documents regarding the application of Geneba for a
licence as a property investment company in the Netherlands.
On November 25, 2013, Homburg Invest received a letter from the AFM
outlining certain matters which required further attention in
connection with the issuance of the licence. Homburg Invest, Geneba,
the Monitor and their respective advisors are working diligently to
address all mentioned matters as soon as possible. The AFM has
suspended the thirteen week delay to process the application for a
period of two weeks so that Geneba may address the matters outlined in
the letter. Accordingly, taking into account the additional two week
delay, the thirteen week delay for the AFM to process the application
is now expected to expire on or about December 24, 2013. The AFM is
allowed to further extend this period for another thirteen weeks.
Discussions with mortgage lenders
Documentation of the renegotiated terms of the loans advanced by
Skandinaviska Enskilda Banken AB ("SEB") to certain affiliates of Homburg Baltic LP Inc. in respect of
properties located in Estonia, Latvia and Lithuania (the "Baltic Portfolio") as well as long term leases for properties situated in these
countries, have been executed by the relevant affiliates of Homburg
Invest and SEB. The agreements with SEB remain subject to the
fulfillment of certain conditions precedent which include the
occurrence of Plan Implementation Date and the delivery of certain
payments provided under the Plan.
Legal documentation of the agreements with HSH Nordbank AG and Bank of
Scotland have also been finalized and executed.
Extension of stay period
It is currently expected that the implementation date of the Plan will
occur in late December of 2013 or early January of 2014. The vast
majority of documents required to implement the Plans are now in final
form following a meeting on November 28 with representatives of Geneba,
Homburg Invest, the Monitor, Catalyst Capital Group and the
Nederlandsch Participatie Exchange ("NPEX"). Although the Company is taking all steps to complete all conditions
precedent as quickly as possible, there can be no assurance that the
implementation of the Plan will not be further delayed.
More information about the CCAA restructuring process can be found on
the Company's website at http://www.homburginvest.com/ as well as on the Monitor's website 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", "expected" 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
Cohn & Wolfe
Tel 0031 (0)20 6768666