Homburg Invest Inc. - Homburg Invest provides update on the investment proposal process

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MONTREAL, April 2, 2013 /CNW Telbec/ - Homburg Invest Inc. ("Homburg Invest") announced today that on March 27, 2013 its board of directors approved entering into exclusive negotiations regarding an investment proposal received from a qualified investor in accordance with Homburg Invest's court-approved investment proposal process (the "IPP").

In accordance with the IPP, several parties indicated their interest in participating in the restructuring process in a way that would supplement the Plan of Compromise and Reorganization (the "Plan") filed with the Superior Court of Québec (Commercial Division) on February 6, 2013, by providing alternatives to creditors. Homburg Invest signed several confidentiality agreements, granting access to financial and other information, enabling certain qualified investors to prepare and submit investment proposals. Three parties presented written investment proposals and after two extensions of the IPP, two qualified investors were invited by Homburg Invest to re-submit their best and final investment proposal.

Homburg Invest, after consultation with its advisors and on the recommendation of Samson Bélair/Deloitte & Touche Inc., in its capacity as Court-appointed monitor in the CCAA proceedings (the "Monitor"), determined that one of the final investment proposals received justified entering into exclusive negotiations with the party that submitted it.

Homburg Invest has now entered into exclusive negotiations until April 11, 2013 with a view to negotiating and settling a definitive agreement setting forth amendments to the Plan as filed which would be intended to provide additional optionality to creditors. Homburg Invest expects these negotiations to lead to enhancements to the Plan, justifying the additional time that they will require; it is currently expected that an amended plan will be presented to creditors in May. The trustees of the bondholders have been invited to participate in these negotiations.

There can be no assurance that these negotiations will lead to a transaction different from that contemplated by the Plan, or as to the terms of any such transaction. Should the exclusive negotiations be successful, the definitive agreement will be conditional on Court approval and creditor approval, if applicable, and Homburg Invest will need to amend the Plan and related documentation.

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.

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", "should", "expect" or "intends" 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, the outcome of negotiations relating to the IPP, 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. 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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Canada
Caroline Martel
NATIONAL Public Relations
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Netherlands
Heleen Jansen
Cohn & Wolfe
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