Eagle Hospitality's Secured Lender Takes Ownership of 13 Hotels
PURCHASE, N.Y., Dec. 11, 2012 /PRNewswire/ -- Eagle Hospitality Properties Trust, Inc. ("Eagle Hospitality") announced today that its secured lender, an affiliate of Blackstone Real Estate Partners VII ("Blackstone"), has taken ownership of Eagle Hospitality's entire portfolio of 13 hotels.
Eagle Hospitality entered into an agreement with Blackstone on September 7, 2012, that delayed foreclosure on its 13 hotels, permitted Eagle Hospitality to attempt to sell the hotels and provided Eagle Hospitality the right to repay its secured debt at a discount.
Eagle Hospitality, with the assistance of its chief restructuring officer and Lazard Freres & Co. LLC, engaged in an extensive process to sell its assets at an aggregate price that would exceed the discounted payoff amount.
Eagle Hospitality was unable to secure one or more definitive contracts to sell its assets by December 10, 2012, which triggered the secured lender's remedies. Pursuant to those remedies, Blackstone has taken ownership and control of substantially all of Eagle Hospitality's assets, including all of its operating and real estate assets.
With limited remaining assets, all of which will be used to wind up its affairs, and no remaining real estate or operating assets, Eagle Hospitality expects that no distributions will be made, now or in the future, to the holders of Eagle Hospitality's 8.25% Series A Cumulative Redeemable Preferred Shares or to the other equity holders of Eagle Hospitality or its operating partnership, EHP Operating Partnership, L.P.
SOURCE Eagle Hospitality Properties Trust, Inc.