SINGAPORE - Current and former directors, and officers responsible for managing Singapore-listed Eagle Hospitality Trust (EHT) are under investigation by the authorities for suspected breaches of disclosure requirements under Section 203 of the Securities and Futures Act.
The Monetary Authority of Singapore (MAS) and the Commercial Affairs Department (CAD) of the Singapore Police Force said on Friday (June 5) that the joint probe stems from a referral by Singapore Exchange Regulation (SGX RegCo), the regulatory arm of the Singapore bourse operator.
It follows a review announced by MAS and SGX RegCo on April 20 into possible breaches of relevant laws and regulations as well as listing rules in relation to the issues surrounding EHT.
The scope of the EHT investigation will be widened if the evidence obtained reveals that other offences may have been committed, MAS and CAD said.
EHT is a stapled trust comprising Eagle Hospitality Reit (EH-Reit) and Eagle Hospitality Business Trust. Trading of EHT units was voluntarily suspended on March 24 after EH-Reit defaulted on a loan of $341 million. The loan default followed the failure of Urban Commons LLC, the master lessee of EHT's properties, to place with EHT the full sum of security deposits due under the master lease agreements, and make timely rental payments since December 2019.
Separately, EHT's managers on Wednesday night disclosed that Hong Kong-listed property conglomerate Far East Consortium International (FECIL) has inked a non-binding conditional proposal with Urban Commons that could see FECIL acquiring a 70 per cent stake in EH-Reit's manager and its trustee-manager, The Business Times reported .
The special committee handling the restructuring and strategic review of EHT's business had to abandon other expressions of interest because Urban Commons earlier signed a letter of intent with FECIL providing for a 90-day exclusivity period that expires on July 14.
