US Bankruptcy Court confirms EHT's Chapter 11 plan to liquidate entities
THE United States Bankruptcy Court has entered an order confirming the Chapter 11 plan to liquidate entities of troubled Eagle Hospitality Trust (EHT), following a confirmation hearing held on Dec 20, 2021.
EHT is a stapled trust comprising Eagle Hospitality Reit (EH-Reit) and the currently dormant Eagle Hospitality Business Trust (EH-BT). In October, 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.
DBS Trustee, in its capacity as trustee of EH-Reit, said on Monday (Dec 27) the effective date of the plan will be on or before Dec 31.
Following the effective date, the liquidation trustee will be authorised to dissolve the entities, other than EH-Reit and the Singapore entities Eagle Hospitality Trust S1 and Eagle Hospitality Trust S2. The liquidation trustee will be jointly selected by the Committee of Unsecured Creditors and Bank of America - the administrative agent of EH-Reit's largest debt facility.
Meanwhile, the Reit trustee will be authorised to dissolve EH-Reit, Eagle Hospitality Trust S1 and Eagle Hospitality Trust S2.
As for stapled securityholders, DBS Trustee said it does not expect they will receive any distributions on account of liquidating trust interests at this time. Under the plan, the stapled securityholders will only be entitled to a distribution only if there is value available at EH-Reit and only if holders of claims against EH-Reit have been paid in full.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Additionally, DBS Trustee noted that EHT's New Jersey hotel Delta Woodbridge, which was previously reported to have been sold for US$23.5 million, has been sold at a purchase price of US$22.3 million instead, subject to closing adjustments.
READ MORE
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
HSBC appoints ex-Citi banker as new Singapore head of global banking
H2G Green chief to stand trial on Aug 5 amid MOM probe
Dasin Retail Trust’s trustee-manager chairman, directors deny allegations of misconduct
Microsoft adds security chiefs to product groups in wake of hacking woes
Singapore shares climb at Friday’s open; STI up 0.2%
A timeline of DBS’ recent banking glitches