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.

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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.

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