Eagle Hospitality sets bid procedures for hotels, gets $470 million bid

By Sarah Lizee

Olympia, Wash., March 9 – Eagle Hospitality Real Estate Investment Trust unit EHT US1, Inc. is seeking court approval of the bid procedures for 15 of its hotels, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The company is also seeking court approval of a stalking horse agreement with Madison Phoenix LLC, an affiliate of Monarch Alternative Capital LP and the debtors’ debtor-in-possession lender.

The stalking horse agreement provides for a total consideration for the assets of $470 million, as well as the assumption of assumed liabilities.

The agreement also provides for a 2% break-up fee and a $3 million expense reimbursement.

Under the proposed bid procedures, the bid deadline would be 4 p.m. ET on May 14, an auction, if needed, would be held on May 20, and a sale hearing would be held on May 28.

A hearing on approval of the bid procedures is scheduled for March 23.

Singapore-based Eagle Hospitality owns a portfolio of corporate, leisure and airport hotels across the United States. U.S. affiliate EHT US1 filed Chapter 11 bankruptcy on Jan. 18 under case number 21-10036.

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