EAGLE Hospitality Trust (EHT)  completed the sale of Hilton Houston Galleria for US$14 million on Feb 1, 2022, DBS Trustee said in a bourse filing on Wednesday (Feb 16).

The net proceeds were used to offset the outstanding principal balance of the mortgage loan for the hotel property, but was understood to be insufficient to cover the whole amount of about US$15.6 million.

EHT is a stapled trust comprising Eagle Hospitality Reit (EH-Reit) and the currently dormant Eagle Hospitality Business Trust (EH-BT).

In the same filing, DBS Trustee said that the Chapter 11 case for its subsidiary Urban Commons Queensway (UCQ), has been converted to a Chapter 7 one under the US Bankruptcy Code. UCQ's principal asset was its leasehold interest in the Queen Mary Long Beach property, a retired British cruise liner which has been converted into a maritime museum and luxury hotel.

This comes after the rejection of the Queen Mary Long Beach agreements, which led to UCQ's loss of its leasehold interest in the property, which is thus to be excluded from the list of EHT's Chapter 11 entities.

The Chapter 11 entities refer to a US Bankruptcy Court order confirming a plan to liquidate all EHT entities except EH-Reit, EHT S1 and EHT S2 on Dec 20, 2021; the plan took effect on Dec 28, 2021.

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The United States Bankruptcy Court for the district of Delaware in the US therefore granted the conversion motion and appointed Jeoffrey Burtch as the Chapter 7 trustee to oversee the liquidation of UCQ's assets.

Stapled security holders are not expected to receive any distribution from the Chapter 7 case, either as equity holders or as claimants for unpaid dividends, said DBS Trustee.

Meanwhile, 10 subsidiaries of EHT have been wound up following the disposal of the Crowne Plaza Dallas Near Galleria-Addison and Delta Woodbridge properties, the trustee added. These subsidiaries are also excluded from the list of Chapter 11 entities.

In October 2021, EHT's units in the US had filed for liquidation, with the trust's bank lenders set to mop up the bulk of the proceeds.

Trading in EHT's stapled securities has been suspended since March 2020.

READ MORE:

• Lessons from troubles besetting listing of Eagle Hospitality Trust

• Liquidation plan for Eagle Hospitality Trust units is 'convoluted, complex and confoundingly dense': US Trustee

• Duo behind Eagle Hospitality Trust found in contempt of preliminary injunction