Catalyst Has Continued Role in Homburg Restructuring

Dartmouth, Nova Scotia-based Homburg Invest Inc., a manager, acquirer and developer of real estate, has entered into a restated support agreement with private equity firm Catalyst Capital Group. “setting forth the terms of Catalyst’s participation” in the company’s restructuring. The new agreement, which replaces one terminated in April, includes the possibility for Homburg creditors to receive a cash payment from Catalyst instead of shares in a new corporate entity. A creditors’ meeting will consider related issues at the end of May.

PRESS RELEASE:

Homburg Invest Inc. (“Homburg Invest” or the “Company”) announced today that the Superior Court of Québec (Commercial Division) (the “Court”) has granted an order authorizing the holding of meetings of the affected creditors of Homburg Invest, Homburg Shareco Inc. (“Shareco”) and Homburg Realty Fund (61) Limited Partnership (“Homco 61”) on May 30, 2013, beginning simultaneously at 9:00 a.m. (Eastern Time) in Montreal and at 3:00 p.m. (Central European Time) in Utrecht, the Netherlands. At the meetings, these creditors will be asked to consider and vote on the amended consolidated plan of compromise, arrangement and reorganization (the “Plan”) relating to Homburg Invest and Shareco pursuant to the Companies’ Creditors Arrangement Act (Canada) (the “CCAA”), whether in person or by proxy. The affected creditors of Homco 61 will be asked to vote on a separate resolution adopting the proposed plan of compromise of Homco 61 (the “Homco 61 Plan” and, together with the Plan, the “Plans”). If the Plans are approved by the required majorities of affected creditors, further motions will be brought before the Court on June 5, 2013 seeking the sanction of the Plans.

The Court also granted an order further extending the CCAA protection granted to Homburg Invest and certain of its affiliates on September 9, 2011, as amended, until June 7, 2013.

In addition, the Court also approved a restated support agreement between the Company and The Catalyst Capital Group Inc., on behalf of Catalyst Fund Limited Partnership III and Catalyst Fund Limited Partnership IV (“Catalyst”), setting forth the terms of Catalyst’s participation in the restructuring. Pursuant to this restated support agreement, the Plans include the possibility for affected creditors to receive a cash payment from Catalyst instead of the shares of a new corporate entity (“Newco”) that they would otherwise receive under the Plans. Although the initial support agreement with Catalyst was terminated on April 24, 2013, as previously announced, in light of Catalyst’s continuing interest in participating in the restructuring and the Company’s interest in providing optionality to creditors, the parties entered into a brief period of negotiations to resolve outstanding issues. The restated support agreement was entered into on April 26, 2013 with the support of the Court-appointed monitor, Samson Bélair/Deloitte & Touche Inc. (the “Monitor”), and Stichting Homburg Bonds.

Jan Schöningh, President and CEO of Homburg Invest, commented: “We are very pleased to be able to announce this important step in our restructuring and look forward to presenting the Plans to our creditors at the meetings on May 30, 2013. We are also pleased to include Catalyst’s option in the Plans, which we believe may be of interest to certain creditors. We hope that Catalyst will become a valuable strategic partner for Newco following the restructuring.”

An information circular describing the Plan in detail and including information relating to the meetings, the report of the Monitor in support of the Plan, and proxy forms for voting in respect of the Plan will now be finalized, printed and mailed to all affected creditors in English and in Dutch.

More information about the Homburg Invest’s CCAA restructuring process can be found on the website of its Court-appointed 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.

Forward-Looking Statements

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 “may”, “will”, “believe”, “expect”, “hope” or “intend” 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, 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 to be sent to the Affected Creditors. 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:

Media:
Canada
Caroline Martel
NATIONAL Public Relations
Tel.: (514) 843-2313
cmartel@national.ca

The Netherlands
Heleen Jansen
Cohn & Wolfe
Tel.: 0031 (0)20 6768666
heleen.jansen@cohnwolfe.nl

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