Homburg Invest expresses concerns regarding partial bid made by Catalyst Capital Group

Homburg Invest expresses concerns regarding partial bid made by Catalyst 
Capital Group 
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION 
IN THE UNITED STATES/ 
MONTREAL, Jan. 22, 2013 /CNW Telbec/ - Homburg Invest Inc. (NYSE Euronext 
Amsterdam: HII) ("HII") has now reviewed the partial tender offer made on 
January 16, 2013 by Catalyst Capital Group ("CCG"), a Canadian-based investor 
in distressed and undervalued debt, to purchase one third of each series of 
its mortgage bonds (series HMB4, HMB5, HMB6 and HMB7) and corporate non 
asset-backed bonds (series HB8, HB9, HB10 and HB11). 
HII believes that CCG's partial offer is not in the best interests of all 
bondholders, and views it as potentially disruptive of the current 
restructuring process. HII's concerns about CCG's partial offer include the 
following: 


    --  The partial offer is only for one third of the bonds in each
        series and CCG has retained broad discretion to determine
        whether the conditions of its offer have been met. There can be
        no assurance that all bondholders who might wish to tender
        their bonds to the offer will be able to do so. CCG's intention
        is not to offer all bondholders of HII a cash exit, but solely
        to increase its influence over the restructuring process for
        its own benefit. Unlike HII and the bond trustees, CCG is not
        required to consider the interests of all creditors (including
        the bondholders) and CCG has stated clearly that it gives no
        assurance to bondholders as to the future course of the
        restructuring process if its tender offer is successful.
    --  The timing of this offer can only be described as opportunistic
        since it forces bondholders to decide whether or not to sell
        their bonds in less than two weeks from now - before they have
        an opportunity to consider the restructuring plan that HII is
        currently completing.
    --  HII's restructuring plan is being prepared with the assistance
        of a court-appointed monitor (Deloitte) and in consultation
        with the bond trustees. This process and the plan that will
        result from it, which CCG describes as a source of risk for
        bondholders, are designed to protect the interests of all
        creditors. The plan will be submitted in the coming weeks to a
        vote of all creditors and subsequently to the court in
        accordance with the Companies' Creditors Arrangement Act
        (Canada). It will position the company that emerges from the
        restructuring for future success. Upon emergence, the company
        will be able to seek the additional capital and other financing
        that CCG suggests it may require if this is determined to be in
        the best interests of the company, its business and its
        stakeholders.
    --  CCG clearly sees the true value and potential of the
        restructured HII business, even if its partial offer would
        preclude bondholders who tender to it from benefiting from
        their share of this value and potential growth.

HII is grateful for the confidence and support of the bondholders during the 
restructuring process and will continue to focus all of its energy and 
resources on filing and presenting a restructuring plan that is the most 
advantageous plan available to HII and all bondholders.

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.

Media: Canada Caroline Martel NATIONAL Public Relations Tel.: (514) 843-2313 
cmartel@national.ca  Nederland Heleen Jansen Cohn & Wolfe Tel.: 0031 (0)20 
6768666 heleen.jansen@cohnwolfe.nl

SOURCE: HOMBURG INVEST

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CO: HOMBURG INVEST
ST: Quebec
NI: REL NEWSTK 

-0- Jan/22/2013 16:20 GMT


 
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