Eagle Hospitality Properties Trust, Inc. Holds Meeting With the Federal Reserve Bank of New York
2012 APR 20 - (VerticalNews.com) -- Representatives of Eagle Hospitality Properties Trust, Inc. ("Eagle") announced that the Federal Reserve Bank of New York ("FRBNY") had granted them a meeting regarding their request to restructure a portfolio of commercial real estate loans secured by Eagle's hotel properties and related assets. At the meeting, a possible means of restructuring was discussed between FRBNY and Eagle. The loans, which mature in September 2012, were acquired by FRBNY from Bear Stearns as part of the United States government's acquisition of certain Bear Stearns' assets in JPMorgan Chase's takeover of Bear Stearns in 2008.
A restructuring of the loans could be beneficial for all the loan parties and to third parties, including investors and hotel workers, whose livelihood and investments are tied to the successful operation of the underlying hotel properties.
While Eagle was encouraged by its discussions with FRBNY, there is no restructuring agreement in place. Therefore, Eagle, working with the Business Solutions & Governance Department at Dewey & LeBoeuf, is simultaneously exploring all available alternatives and strategies to restructure the loans, including a potential chapter 11 bankruptcy case. It remains Eagle's hopes that all litigation scenarios will be avoided.
Certain information relating to Eagle can be found on its website at www.eaglehospitality.com.
SOURCE Eagle Hospitality Properties Trust, Inc.
Eagle Hospitality Properties Trust, Inc.
Keywords: Industry, Economics, Legal Issues, Financial Companies, Eagle Hospitality Properties Trust Inc., Real Estate Investment Trust - Hotel/Motel Companies.
This article was prepared by VerticalNews Economics editors from staff and other reports. Copyright 2012, VerticalNews Economics via VerticalNews.com.