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.