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MONTREAL, Dec. 23, 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 revised timing regarding the implementation of the Third
Amended and Restated Plan of Compromise and Reorganization of Homburg
Invest Inc. and Homburg Shareco Inc. (the "Plan").
As disclosed in greater detail in the Plan and in previous news
releases, 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 to file additional documents regarding the application of Geneba
for a licence as a property investment company in the Netherlands. This
was completed by September 5, 2013.
Following the completion of the licence application, Homburg Invest, the
Monitor and Geneba, have been in regular communication with the AFM and
the Dutch Central Bank (De Nederlandsche Bank "DNB"), including meeting with representatives of the AFM to respond to
their questions with regard to Geneba's licence application. The
ongoing application process has taken more time than originally
anticipated and the AFM indicated that it will not be issuing a licence
to Geneba before the end of 2013. However, in light of their
correspondence with representatives of the AFM, Homburg Invest, the
Monitor and Geneba are confident that a licence will be granted by the
AFM in early 2014.
As a result of the delay in the license application process, the
implementation of the Plan will not occur in 2013. Although the Company
is taking all steps to complete all conditions precedent as quickly as
possible, including cooperating fully with the AFM and DNB application
process, there can be no assurance as to the timing of implementation
of the Plan.
Discussions with mortgage lenders
Further to the developments regarding the timing of the implementation
of the Plan, Homburg Invest has begun seeking the required extensions
from certain of the mortgage lenders for whom a Plan implementation on
or prior to December 31, 2013 was a condition precedent. At this time,
Homburg Invest has received the necessary consent from two of its
mortgage lenders and the Company and the Monitor expect to be able to
obtain all other required consents.
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