Porter Hedges Represents Owner of Downtown Houston Hotel in Chapter 11 Restructuring

Porter Hedges represented the owner of the Embassy Suites hotel in downtown Houston in its successful Chapter 11 restructuring. The hotel is located in the heart of downtown, within a half mile of Minute Maid Park, Toyota Center, and George R. Brown Convention Center. The restructuring, which closed on March 31, 2022, was filed in the wake of COVID-19’s devastating effect on conventions and related travel.

The cornerstone of the Reorganization Plan was a comprehensive settlement with the hotel’s secured lender that included an extension of the loan’s maturity, reduction in principal payments, and the elimination of a “make-whole” prepayment penalty and default interest in excess of $5,000,000. The reorganization was achieved while maintaining the hotel’s valuable franchise license and vendor relationships. All other creditors will be paid in full over the next year.

On March 3, 2022, the Chief Judge of the United States Bankruptcy Court for the Southern District of Texas, confirmed the hotel’s Plan of Reorganization.