Proposals out to pay Holman Grand creditors

Ryan Ross
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Holman Grand Hotel

The company that used to own the Holman Grand hotel in Charlottetown has put forward a proposal to pay part of what is owed to its creditors.

On Thursday afternoon, an official with Finance P.E.I. said Homburg Invest Inc., which built the hotel, is in the process of putting forward proposals to its creditors as part of a restructuring.

Those creditors include the provincial government and contractors who worked on the hotel’s construction.

In November, Dyne Holdings took ownership of the hotel from Homburg Invest Inc., although that didn’t include the Holman Grand name, the hotel’s website or chattels, such as linens and electronics.

An update from court-appointed monitor Deloitte and Touche issued Thursday said a Quebec court has since authorized the transfer of the additional holdings, such as the name, to Dyne Holdings.

In an interview with The Guardian on Thursday, Innovation Minister Al Roach said Cominar Real Estate Investment Trust (REIT), which owns Dyne Holdings, put forward a proposal for all the hotel’s creditors.

But after a version of the story appeared on The Guardian website, the Finance P.E.I. official said that’s not the case and it’s Homburg Invest Inc. that is putting forward the proposals to creditors.

The provincial government is owed about $16 million used to build the hotel, while contractors and other creditors are owed millions more.

Homburg Invest Inc., a publicly traded company that bore its founder Richard Homburg’s name, built the hotel on land it leased from Dyne Holdings in Charlottetown.

Richard Homburg used to have a controlling interest in Homburg Invest, but lost control of the company before it went into creditor protection more than a year ago and he hasn’t been involved with the company since then. He also had a stake in Canmarc REIT, which was Dyne Holdings’ former owner.

Last year Quebec-based Cominar bought Canmarc, leaving Richard Homburg without any control over the hotel.

The Finance P.E.I. official said Homburg Invest Inc.’s plan of compromise and reorganization was posted on the court appointed monitor’s website this week.

Once the plans are formally in creditors’ hands there is a period of time during which they can respond, he said.

The official also said he doesn’t know if the Homburg Invest Inc. plan will cover all of the outstanding debts and if not the province would then have to go to Cominar to see what the company plans to do with the hotel.

Organizations: Homburg Invest Inc., Dyne Holdings, Holman Grand hotel Finance P.E.I. The Guardian Cominar Real Estate Investment Trust Canmarc REIT Cominar

Geographic location: Charlottetown, Quebec

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Recent comments

  • Guy Cousineau
    February 08, 2013 - 10:51

    I recall Premier Ghiz saying our 16 million was well protected

  • Just Another Hit
    February 08, 2013 - 08:52

    Hey ; this is just another hit to the taxpayer of PEI by the miss management of this Liberal goverment . No wonder there is so much concern regarding the changes to the EI system . The money to asorb these losses has to come from somewhere . It's a shame that the people of Canada are tired of bailing us out & we might have to go to work & pay it ourselves . Let's hope that the provincial gov will shut the door & not lose any more taxpayers money on this .

  • Prof Sean Hennessey
    February 08, 2013 - 07:17

    What an embarassment this is for the Island politicians

    • Marie
      February 08, 2013 - 10:40

      There is no shame in Island politicians PROF. Only greedy politicians that would give PEI away just for the sake of name association. Even giving away taxpayer dollars and PEI heritage in the ATTEMPT to look like wise men. They just look like thieving idiots from here.

  • don
    February 07, 2013 - 23:34

    they will get 1% of what thy are owed remember you are dealing with a place from quebec. and we owe them the world if not they will leave dizzy will give them a deal of no tax, and free labour.

  • intobed
    February 07, 2013 - 21:34

    I wonder how much money the new owners are asking the PEI government for? They will need the money to refurbish the building, wage subsidies to hire new staff, and to help advertise the hotel.

  • how many cents on the dollar we talkin here Al?
    February 07, 2013 - 21:19

    O. K. is it less than fifty cents on the dollar???? Oh no don't tell us its less than 30 cents!!! We want some heads rolled out into the street. This is terrible, really.