EH-Reit Receives $153.9 Million in Net Proceeds from Sale of Five Chapter 11 Assets

EAGLE Hospitality Real Estate Investment Trust (EH-Reit), which is part of Singapore-based Eagle Hospitality Trust (EHT), has received net proceeds of about U.S. $153.9 million following the sale of five chapter 11 properties, the Singapore Business Times reported. The net proceeds have been partially used to repay the debtor-in-possession facility and the stalking horse "break up" fee, EH-Reit trustee DBS Trustee said in a bourse filing on Thursday. The balance remaining is around $109.7 million, which will go to repaying ongoing post-petition expenses and pre-petition creditors. This includes some $380 million under a pre-petition facilities agreement, as well as claims from trade creditors against these entities which DBS Trustee said cannot be quantified at this time. "To the extent any value remains, other junior creditors would be paid," it added. The sale of four properties under chapter 11 protection for $117.2 million was completed on June 3. These assets were Sheraton Denver Tech Center, Four Points by Sheraton San Jose Airport, Embassy Suites by Hilton Anaheim North, and Double Tree by Hilton Salt Lake City. Hilton Atlanta Northeast was later sold for $37.9 million on June 8. Read more.