I committed the dreaded "unforced error" with the Eagle Hospitality preferreds as the company announced this morning that it had failed in its attempt to sell the 13 hotel properties and had handed over the keys to the Blackstone.
Eagle Hospitality's Secured Lender Takes Ownership of 13 Hotels
Blackstone Adds to Hotel Haul with Eagle Foreclosure
In the press release Eagle states that they will use the remaining funds to wind down the operations and no distributions will be made to the preferred share holders. Luckily this was only a small and speculative position for me, and with shares trading down 99% this morning I will likely hold my position (may need to sell for tax reasons) to see if any of the large shareholders make a stink about the outcome or there's more disclosure around what assets the company has remaining. Lesson learned.