Eagle Hospitality Trust's US units file liquidation plan, bulk of proceeds to go to bank lenders

UNITS of the beleaguered Eagle Hospitality Trust (EHT) in the US have filed for liquidation, with the trust's bank lenders set to mop up the bulk of the proceeds, court documents lodged on Oct 14 showed.

The documents said that proceeds of US$481.9 million were raised. A syndicate of lenders, led by Bank of America, will receive a guaranteed distribution in cash of US$360.2 million.

This amount represents a nearly full recovery for the lenders, who were claiming no less than US$380.5 million which was reportedly calculated as the sum of a list of items including the principal amounts, accrued pre-petition interest, pre-petition charges, swap obligations, as well as agent and professional fees.