Homburg Invest plan won't be implemented in 2013 amid license delays

By Caroline Salls

Pittsburgh, Dec. 23 - Homburg Invest Inc.'s third amended and restated plan of compromise and reorganization will not be implemented in 2013 as a result of a delay in the Dutch securities regulator license application process, according to a news release.

Homburg said the issuance of a license from the Dutch securities regulator, the Autoriteit Financiele Markten (AFM), is the principal remaining condition to implementation of the plan filed in its Companies' Creditors Arrangement Act case.

In light of the enactment of the European Alternative Investment Fund Managers Directive and of three Level 2 regulations supplementing it, Homburg Invest and Geneba Properties NV were required to amend some documents already filed with the AFM and to file additional documents regarding the application of Geneba for a license as a property investment company in the Netherlands. The company said this was completed by Sept. 5.

Following the completion of the license application, Homburg Invest said it, the CCAA monitor and Geneba have been in regular communication with the AFM and the Dutch Central Bank, but the ongoing application process has taken more time than originally expected.

According to the release, the AFM indicated that it will not be issuing a license to Geneba before the end of 2013. Homburg Invest, the monitor and Geneba are confident that a license will be granted by the AFM in early 2014.

In addition, the company said it has begun seeking extensions from some of the mortgage lenders that required the plan to be implemented by Dec. 31.

At this time, Homburg Invest said it has received the necessary consent from two of its mortgage lenders, and the company and the monitor expect to be able to obtain all other required consents.

Based in Halifax, N.S., Homburg owns a portfolio of real estate, including office, retail, industrial and residential apartment and townhouse properties in Canada, the United States and Europe.

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