Eagle Hospitality Trust announced that a distressed-debt specialist, Monarch Alternative Capital, has entered into a preliminary “stalking horse” agreement with entities holding 15 of its 18 U.S. hotel properties, which are under Chapter 11 bankruptcy protection.
According to the release, “The stalking horse bidder’s bid of consideration of $470 million represents the highest price achieved for the Chapter 11 properties following an extensive solicitation process with bidders globally and sets the ‘floor price’ for the second bid round and the auction, and prevents other potential bidders from underbidding the purchase price. The stalking horse bidder’s bid is also generally not subject to any material conditions (other than clear title of the Chapter 11 properties) and requires minimal representations and warranties by the Chapter 11 property entities. The stalking horse agreement remains subject to higher or better bids, including offers to purchase all
