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MONTREAL, Sept. 30, 2013 /CNW Telbec/ - Homburg Invest Inc. ("Homburg Invest" or the "Company") today provided an update on the Company's restructuring process under the Canadian Companies' Creditors Arrangement Act ("CCAA"), including expected timing for plan implementation and announced that it 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 on September 9, 2011, as amended, until December 2, 2013.
As disclosed in greater detail in the Third Joint Amended and Restated Plan of Compromise and Reorganization filed by Homburg Invest and Homburg Shareco Inc., the Amended and Restated Plan of Compromise and Reorganization of Homco Realty Fund (61) Limited Partnership (the "Plans") and several other documents available to stakeholders, there are numerous conditions precedent to implementation of the Plans including, without limitation, reaching satisfactory arrangements with the mortgage lenders of the Core Business Assets (as defined in the Plans), obtaining regulatory approvals in the Netherlands and Canada, including the issuance of a licence from the Dutch securities regulator, the Autoriteit Financiële Markten (the "AFM"), and receiving certain confirmations from both Dutch and Canadian tax authorities. The Company has fulfilled a number of these conditions and is working with the utmost diligence to fulfill those that remain.
Advance tax ruling
The Canada Revenue Agency issued the requested advance tax ruling relating to the Plans on September 25, 2013.
AFM licence application
Homburg Invest and Geneba Properties N.V. ("Geneba") prepared and filed on July 12, 2013 an initial application for the issuance to Geneba of a property investment company licence by the AFM. While the AFM was considering this initial application, the European Alternative Investment Fund Managers Directive ("AIFMD") and regulations which supplement the AIFMD (the "Regulations") were implemented into national law in the Netherlands on July 22, 2013.
Homburg Invest and Geneba were required to amend certain documents already filed with the AFM and to file additional documents. All the amended and additional documents have now been filed.
Homburg Invest and Geneba, together with Samson Bélair/Deloitte & Touche Inc., in its capacity as court-appointed monitor (the "Monitor"), have remained in regular communication with the AFM. Key stakeholders, including Stichting Homburg Bonds, have received regular progress updates. The Company and the Monitor believe that the AFM licence could potentially be granted as soon as the end of October 2013.
Trading on NPEX
On September 25, 2013, Nederlandsche Participatie Exchange ("NPEX") approved the trading of depositary receipts for Geneba shares on NPEX following implementation of the Plans.
Discussions with mortgage lenders
Homburg Invest, the Monitor and their respective advisors have continued their discussions with the mortgage lenders of the Core Business Assets to finalize all arrangements and consents required to implement the Plans and have been negotiating the terms of the closing documents with the relevant parties. Homburg Invest believes this process could also be completed as soon as the end of October.
In short, the outstanding conditions precedent to the implementation of the Plans have either been fulfilled or are in the process of being fulfilled. Additional details regarding these conditions precedent can be found in the Monitor's twenty-seventh report, available on the websites below.
Geneba has also applied to Canadian securities regulators to cease to be a reporting issuer in Canada and for a related exemption relating to resales of Geneba shares by Canadian residents. Decisions on these applications have not yet been made.
Extension of stay period
It is currently expected that the implementation date of the Plans will occur in late October of 2013, although there can be no assurance that the implementation of the Plans will not be further delayed. The Order extending the stay of proceedings will allow the Company to complete the remaining conditions precedent to the implementation of the Plans. The Company is taking all possible steps to fulfill all conditions precedent as quickly as possible.
More information about the CCAA restructuring process can be found on the Company's website at http://www.homburginvest.com/ as well as the website of 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", "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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