EHT notice to master lessees in US: Pay rent or vacate
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Eagle Hospitality Trust (EHT) has served "pay/perform or quit" statutory notices to its master lessees in United States.
The notices require the lessees to pay outstanding rent or meet defaulted non-rent obligations within three and 15 days, according to the applicable state law.
If the conditions are not met, lessees will have to "peacefully vacate" and surrender the property, EHT said in a bourse filing on Wednesday night.
Some tenants have not paid rent to EHT since early this year under master lease agreements for certain properties.
This resulted in an event of default for a US$341 million (S$464 million) loan EHT had taken out, which subsequently forced the trust to delay a distribution to its stapled security holders.
EHT sponsor Urban Commons alleged last month that EHT units were in breach of certain agreements.
The allegations include EHT's failure to pay over US$15.3 million in relation to certain contracts, obligations and assets.
It also accused the trust of failing to maintain hotels, not refunding rents for a hotel that sustained hurricane damage and using security deposits wrongfully.
EHT rejected the allegations on Aug 27.
THE BUSINESS TIMES
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3-15
Number of days EHT's lessees have to pay outstanding rent or meet defaulted non-rent obligations.
