PracticeAccounting FirmsDeloitte called to troubled Homburg Invest

Deloitte called to troubled Homburg Invest

Deloitte is to review a company in turmoil, as Homburg Invest is sued by a former partner and faces the revocation of its license in The Netherlands

TROUBLED PROPERTY SPECIALIST Homburg Invest Inc (HII) has summoned Deloitte to perform a strategic review following a $27m (£16.7m) damages claim by former partner Homburg Canada Incorporated (HCI).

HCI is protesting the termination by HII of a property and asset management agreement, but the latter company maintains that HCI breached its obligations and therefore has no right to remuneration.

In a statement, Homburg Invest said: “The company rejects the claim for compensation and will vigorously contest it, should the matter come before the courts.”

Problems were compounded by the resignation last week of two members of the board. Director and chairman Michael Arnold stepped down alongside Dr Trevor Carmichael.

Homburg Invest is also at risk of losing its license in The Netherlands, as the Dutch Authority for Financial Markets demanded majority shareholder Richard Homburg be removed as a decision-maker.

Deloitte has been charged with “enhancing the company’s balance sheet and financial flexibility”, in a move that could be designed to draw a line under recent turmoil.

For more company information visit The Share Price Centre

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