EH-Reit books US$324.7m in net proceeds from sale of non-auctioned assets

EAGLE Hospitality Reit (EH-Reit), which is a part of the beleaguered Eagle Hospitality Trust (EHT), last Thursday completed its sale of its remaining nine non-auctioned Chapter 11 properties excluding the Queen Mary Long Beach.

These assets include the Reit's Holiday Inn properties in Orlando, Denver and California, as well as Renaissance Denver Stapleton, Sheraton Pasadena, Crowne Plaza Danbury, Westin Sacramento and Embassy Suites by Hilton Palm Desert.

In a bourse filing on Monday, EHT's trustee DBS Trustee said the Chapter 11 entities - including EH-Reit and the EHT Singapore entities - received net proceeds of US$324.7 million from the latest transaction.

Aggregate net proceeds from the sale of 14 Chapter 11 properties in total, which has since been completed with the latest transaction, amounted to US$478.6 million.

The balance of the net proceeds will be utilised to repay ongoing post-petition expenses and pre-petition creditors of the Chapter 11 entities, which DBS Trustee said will be in the order of priority of their respective rights.

This includes the outstanding amount under a pre-petition facilities agreement after factoring in accrued interest and related swap agreements, as well as trade creditors against these entities.

Other junior creditors would also be paid should any value remain after, said the trustee.

On June 17, 2021, DBS Trustee reported that EH-Reit had received net proceeds of about US$153.9 million following the sale of five out of the 14 Chapter 11 properties.

EHT is a hospitality stapled group comprising EH-Reit and Eagle Hospitality Business Trust. The group filed for Chapter 11 bankruptcy in January 2021. Trading in EHT has been suspended since March 2020.