A SINGAPORE court application has been filed for the recognition of the order issued by the United States Bankruptcy Court to liquidate Eagle Hospitality Trust' s (EHT) entities.

 

EHT is a stapled trust comprising Eagle Hospitality Reit (EH-Reit) and the currently dormant Eagle Hospitality Business Trust (EH-BT). In October last year, 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.

 

Under the confirmed Chapter 11 plan, 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.

 

Meanwhile, the Reit trustee will be authorised to dissolve EH-Reit, Eagle Hospitality Trust S1 and Eagle Hospitality Trust S2.

 

The application to the Singapore High Court sought for the recognition of the liquidating trustee as a foreign representative of the Singapore Chapter 11 entities and for the liquidating trustee to be entrusted with the administration and realisation of all or any part of the property and assets of the entities in Singapore, said DBS Trustee, in its capacity as trustee of EH-Reit on Friday (March 11).

 

It is also seeking the authorisation of the Reit trustee to take all appropriate and necessary steps to wind down the Singapore Chapter 11 entities in accordance with and subject to Singapore law, and perform other duties and obligations as set out under the confirmed plan.

 

A pre-trial conference for the court application has been fixed on Mar 24 at 2.30 pm. The date for the substantive hearing has yet to be fixed.

 

Stapled securityholders who intend to attend the substantive hearing or object to the application should inform solicitors of the liquidating trustee by Mar 21.

 

EAGLE Hospitality Trust (EHT) has completed the sale of Hilton Houston Galleria for US$14 million on Feb 1, 2022, DBS Trustee said in a bourse filing on Wednesday (Feb 16).

 

The net proceeds were used to offset the outstanding principal balance of the Hilton Houston Galleria mortgage loan, but was understood to be insufficient to cover the whole amount of about US$15.6 million.

 

EHT is a stapled trust comprising Eagle Hospitality Reit (EH-Reit) and the currently dormant Eagle Hospitality Business Trust (EH-BT).

 

In the same filing, DBS Trustee said that the Chapter 11 case for its subsidiary Urban Queensway LLC (UCQ), whose principal asset was its leasehold interest in the Queen Mary Long Beach property, has been converted to a Chapter 7 one under the US Bankruptcy Code.

 

This comes after the rejection of the Queen Mary Long Beach agreements, which caused UCQ to no longer hold the leasehold interest in the property, leading it to not be included among EHT' s Chapter 11 entities.

 

The Chapter 11 entities refer to a US Bankruptcy Court order confirming a plan to liquidate all EHT entities except EH-Reit, EHT S1 and EHT S2 on Dec 20, 2021, which went into effect on Dec 28, 2021.

 

The United Bankruptcy Court for the district of Delaware in the US therefore granted the conversion motion and appointed Jeoffrey Burtch as the Chapter 7 trustee to oversee the administration of the liquidation of UCQ' s assets.

 

Stapled security holders are not expected to receive any distribution from the Chapter 7 case, either as equity holders or as claimants for unpaid dividends, said DBS Trustee.

 

Meanwhile, 10 subsidiaries of EHT have been wound up following the disposal of the Crowne Plaza Dallas Near Galleria-Addison and Delta Woodbridge properties, the trustee added. These subsidiaries are not part of the Chapter 11 entities.

 

In October 2021, 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.