EHT Unitholders Informal Steering Committee (ISC) Formation

Date: March 2, 2021

Dear EHT unitholders

1. Update on EHT

As you would know, the EGM to appoint a new REIT manager failed. As such, due to creditor demands, the Eagle Hospitality Real Estate Investment Trust (EHT) and its subsidiaries have filed for bankruptcy in the United States under chapter 11 of the United States Bankruptcy Code. This was deemed by EHT to be necessary to preserve value for all stakeholders. BT reported that DBS Trustee, as trustee of EHT, intends to commence a marketing process to sell the hotel properties. This process does not, however, preclude the continued exploration of other restructuring alternatives. EHT has secured a one-year loan to provide it some flexibility to remain in bankruptcy for an extended period of time to allow property values to rebound assuming the COVID-19 pandemic subsides.

2. EHT unitholders’ representation in EHT Chapter 11

We are exploring the possibility of having EHT unitholders represented in EHT’s bankruptcy case by an official committee. Such representation will ensure that EHT unitholders have a voice in EHT’s bankruptcy. If such an official committee is formed, the costs of such representation are paid for by EHT and not the EHT unitholder-members of the official committee.

The first step towards petitioning for appointment of an official committee is for EHT unitholders to form the informal steering committee (ISC) comprising of two or more (maximum 10) unitholders. It would be ideal if these were significant holders of EHT’s equity. These unitholders would then be the petitioning shareholders for the equity committee, on behalf of all unitholders.

Once the ISC is organized, the US lawyers will submit a letter to the Office for the United States Trustee (the “UST”). The UST will then consider the request. As part of its consideration, it may solicit feedback from the Debtors and other key stakeholders in Eagle’s chapter 11 cases, including the creditors’ committee and potentially EHT’s subsidiaries’ secured lenders.

As mentioned, we are trying our best to have unitholder representation in EHT’s chapter 11 case. There can be no assurances of success of appointment of an official committee or that EHT unitholders will receive any recovery upon conclusion of the chapter 11 cases.

3. Next steps

If you would like to be considered on the ISC please reply this email with the following information:

a. Name
b. Email
c. Mobile Number
d. Size of holdings in EHT: number of units
e. Proof of holdings

Please note, by submitting your name for consideration, you also consent to releasing your information to the lawyers representing the ISC and other official parties like the Court, for verification purposes. Please send to with the subject as EHT ISC Formation, by 8 March 2021, 9am.

We seek your cooperation to provide all the information as requested above. There is not much time as the next Court hearing is fast approaching. If you know of any other EHT unitholders, please forward this email to them.

David Gerald
Founder, President & CEO