Eagle Hospitality Units’ Plan to Liquidate in Bankruptcy Approved

Eagle Hospitality Real Estate Investment Trust’s bankrupt U.S. units won court approval of their liquidation plan, allowing unsecured creditors to recover more than 55% of their claims.

Judge Christopher S. Sontchi said he’ll sign an order confirming the plan after the hotel owner incorporates certain changes he required at a hearing Monday.

The plan lays out the distribution of $482 million in proceeds from the sale of 14 hotels during the company’s bankruptcy.

Pre-bankruptcy lenders are guaranteed to get at least $360 million after agreeing to a $380.5 million claim as part of a settlement with Eagle Hospitality and the ...