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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
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