[CHARLOTTETOWN, PE] — Homburg Invest owes the provincial government $13.2 million, according to a list of the company’s creditors.
On September 9, Homburg Invest and several affiliate companies applied for creditor protection to help it restructure its finances while still operating.
Homburg Invest applied for creditor protection in the Quebec Superior Court, which appointed Samson Bélair and Deloitte & Touche Inc. as monitors.
As part of the proceedings Deloitte & Touche released a list of creditors that included Island Investment Development Inc. (IIDI), along with 29 other companies with addresses on P.E.I., along with the provincial tax commissioner and the Tourism Industry Association of P.E.I., which has an address in Toronto.
Homburg Invest owes those businesses about $2.2 million, including $113,582 to Dyne Holdings, which the company owns.
The largest amount owed to an Island business is $1.28 million to Fitzgerald and Snow while several other companies are owed more than $100,000.
The smallest amount owed is $88.39.
There are a range of creditors that include contractors, a law office, an appliance store, a book store and The Guardian.
In an e-mail statement, an Innovation Department spokesman said IIDI has $32,838,000 in financing offers to Dyne Holdings and Fitzroy Development Inc, but not all of that money is outstanding and all monthly payments are up to date.
As of Sept. 12 Dyne Holdings owed $14.2 million used for hotel costs and $9.37 million for Confederation Court Mall renovations.
Fitzroy Development Inc. owed $4.8 million toward the Homburg Financial Tower.
The monitor also reported the provincial government gave Homburg Invest $1.5 million last week with the stipulation that the company pay suppliers.
That money was part of $16.3 million originally approved for lending toward the hotel costs.
The provincial spokesman said IIDI holds first mortgage security on the Holman Grand hotel and the financial tower, while the Charlottetown Area Development Corporation and IIDI hold first and second mortgage security on the mall.
Last week Innovation Minister Allan Campbell said he expects the province will be able to recover what it’s owed if necessary.
