Stabilized, restructured and liquidated. Singapore’s listed Eagle Hospitality REIT ultimately achieved a near 100% recovery for most creditor classes.
Despite franchise agreement defaults, the FTI Consulting team retained hotel operators amidst the exodus of unpaid managers and employees, stabilized the company and restored confidence with lenders and investors.
Eagle Hospitality Trust emerged from bankruptcy within a year from filing, with lenders achieving almost a full recovery.
FTI Consulting immediately deployed a global team, with deep experience in hotel operations, real estate, insolvency and restructuring, in multiple jurisdictions to seize the assets and stabilize operations while negotiating with various parties for a transition to new management.
Our experts negotiated 16 forbearance agreements with lenders/special servicers while implementing numerous replacement franchise agreements, management contracts and similar operational contracts.
Our team ensured that the business was protected by securing/negotiating property and liability insurance coverage, navigating municipal restrictions, keeping vendors and litigants at bay, and implementing urgent repairs and maintenance on long-neglected hotels, including Long Beach’s iconic Queen Mary.
The team established the framework for the successful bankruptcy auction of 14 hotels in June 2021 during the COVID-19 pandemic.
FTI Consulting achieved consensus around, and support for, a Plan of Reorganization, with thousands of creditors and stakeholders, which was recognized by the United States, Singapore and Cayman courts.
M&A Advisor “Financials Deal of the Year”
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