Eagle Hospitality REIT, a component of Eagle Hospitality Trust (EHT), has received net proceeds of approximately USD153.9 million from the sale of five of its Chapter 11 properties.

These assets are namely Sheraton Denver Tech Center, Four Points by Sheraton San Jose Airport, Embassy Suites by Hilton Anaheim North, DoubleTree by Hilton Salt Lake City and Hilton Atlanta Northeast.

Net proceeds from the sale have been partially utilised to repay the full outstanding amount under its DIP financing facility, and the accrued interest.

Following the repayment, and the stalking horse “break-up fee”, the balance of the net proceeds from the sale is approximately USD109.7 million.

This balance will be utilised to repay ongoing post-petition expenses and pre-petition creditors of the Chapter 11 entities in the order of priority of their respective rights.

These include the approximately USD380 million under the pre-petition facilities agreement and related swap agreements, as well as trade creditors.

To the extent any value remains, other junior creditors would be paid.

Besides the sale of these assets, the beleaguered EHT is also inching closer towards losing the lease of its flagship asset.

Related: Eagle Hospitality Trust inches closer towards losing lease on Queen Mary

EHT remains suspended from trading on the Singapore Exchange since March 2020.