Homburg Invest provides update on restructuring process
23 Dec, 2013, 10:00 ET
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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
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