Homburg Ends Discussions with Catalyst Capital

Homburg Invest Inc., a Dartmouth, Nova Scotia-based manager, acquirer and developer of real estate, has ended discussions with private equity firm Catalyst Capital Group, which specializes in control investments in distressed and undervalued situations. As the company and Catalyst were unable to reach agreement, Homburg has filed an amended restructuring plan and related materials to parties to Companies Creditors’ Arrangement Act proceedings.

PRESS RELEASE:

Homburg Invest Inc. (“Homburg Invest”) announced today that it has terminated the support agreement entered into with The Catalyst Capital Group Inc., on behalf of funds managed by it (“Catalyst”), and its previously announced investment proposal process.

As announced on April 16, 2013 , the support agreement provided that Homburg Invest and Catalyst would work together to complete the final documentation necessary to implement its provisions, including amendments to the Plans of Compromise and Reorganization (the “Plan”) filed with the Superior Court of Québec (Commercial Division) (the “Court”) on February 6, 2013 relating to Homburg Invest’s restructuring.

The parties were unable to reach agreement regarding the substance of the amendments to the Plans and the related documents. Homburg Invest also notified Catalyst that certain conditions of the support agreement had not been met.

Homburg Invest therefore determined, after consultation with Samson Bélair/Deloitte & Touche Inc., in its capacity as Court-appointed monitor (the “Monitor”) in the proceedings under the Companies Creditors’ Arrangement Act (“CCAA”) proceedings, and with the Monitor’s support and the support of Stichting Homburg Bonds, Homburg Invest’s largest creditor group, that it would be in the best interests of creditors to respect Homburg Invest’s original timeline for filing the amended Plans and related documents with the Court, as set forth in the support agreement. Homburg Invest therefore intends to file the amended Plan and a motion asking the Court to set a date for the meetings and authorizing Homburg Invest to submit the amended Plans and related documents to its creditors on Friday, April 26 . This motion and the materials in support of it, including the amended Plans, have been served to the parties to the CCAA proceedings and other interested parties today.

Homburg Invest continues to expect that the creditors will be called upon to vote on the amended Plan in May, as originally scheduled.

More information about the Homburg Invest’s restructuring process can be found 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.

SOURCE: Homburg Invest

Media:

Canada

Caroline Martel, NATIONAL Public Relations, (514) 843-2313; cmartel@national.ca

Netherlands

Heleen Jansen, Cohn & Wolfe, Tel 0031 (0)20 6768666; heleen.jansen@cohnwolfe.nl

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