© Guardian photo
Holman Grand hotel, Charlottetown
Almost three years after the money stopped flowing to contractors that worked on the Holman Grand hotel, Homburg International has paid all the outstanding bills.
Philip Jamieson, president of J & S Sheet Metal, said it was good to have everything that was owing finally paid.
“Unbelievable,” he said.
The long process started after Homburg Invest Inc. (HII), which owned the hotel and several other properties in Charlottetown, sought creditor protection in 2011.
Richard Homburg was once the CEO of HII but lost control of the company before it sought creditor protection and left bills unpaid.
Homburg International, which Richard Homburg controls, has since bought the hotel and all of HII’s other properties in Charlottetown.
Among the creditors for the hotel were 29 Island businesses, including J & S Sheet Metal, which was owed more than $266,000 for work on the Holman Grand’s air conditioning system. Although Jamieson said the outstanding bill wasn’t enough to drive his company out of business, it wasn’t an easy situation.
“It was a lot of money to deal with.”
Richard Homburg said he wasn’t involved in the day-to-day operations of the company so he didn’t know the total amount that went out to the hotel’s creditors.
In a previous interview he told The Guardian $1.75 million was set aside in a trust to pay the creditors whatever was still outstanding after the HII settlements were complete.
Homburg said in 45 years of business he has never had bills go unpaid and the money didn’t go to the creditors earlier because he lost control of HII.
“It was always my intention,” he said.
Paying the unsecured creditors was part of his plan when Homburg International bought the properties, Homburg said.
“We don’t want them to pay the bill for what I call a bad situation that was created because of circumstances.”