Eagle Hospitality's Secured Lender Takes Ownership of 13 Hotels
PURCHASE, N.Y., Dec. 11, 2012
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.
Contact: Lance Ignon or Thom Weidlich, both of Sitrick And Company, for Eagle
Hospitality Properties Trust, Inc., +1-212-573-6100
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