Entities of Eagle Hospitality Trust file for bankruptcy protection in Delaware court

ENTITIES of troubled Eagle Hospitality Trust (EHT) on Monday filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the District of Delaware.

Documents lodged showed that as many as 27 entities within the EHT stable filed for bankruptcy protection on Monday. These debtors have also moved for the joint administration of these cases.

Filings for EHT US1, Eagle Hospitality Trust S2 and Eagle Hospitality Trust S1 all listed estimated liabilities of US$500 million to US$1 billion.

The estimated value of assets at end-September, 2020 was in the range of US$500 million to US$1 billion.

The estimated number of creditors on a consolidated basis was in the range of 1,000 to 5,000.

Chapter 11 is a form of bankruptcy that involves a reorganization of a debtor's business affairs, debts, and assets.

During such a proceeding, the court will help a business restructure its debts and obligations.

Firms generally file under this chapter if they require time to restructure their debts. The terms are, however, subject to the debtor's fulfilment of its obligations under the plan of reorganisation.

The Business Times has reached out to EHT for comment.