The Monetary Authority of Singapore (MAS) has directed the manager of Eagle Hospitality Real Estate Investment Trust (EH-Reit) and its trustee, DBS Trustee, to take steps to protect the rights and interests of EH-Reit's unit holders.
MAS and the regulatory arm of the local bourse, Singapore Exchange Regulation, are also looking into possible breaches of laws and regulations, as well as of listing rules in relation to the issues surrounding the Reit, they said in a joint statement yesterday.
EH-Reit is one part of stapled group Eagle Hospitality Trust (EHT). Trading in EHT's stapled securities was voluntarily suspended on March 24, following an event of default on EHT's US$341 million (S$485 million) syndicated loan. Urban Commons - EHT's sponsor and the master lessee of EHT's properties - failed to pay in full the security deposits due under master lease agreements to EHT, and to make timely rental payments since December last year.
As a result of the default, EHT was restricted from paying out its declared maiden dividend to stapled security holders.
Yesterday, EHT's managers disclosed that the syndicate of lenders for the loan has restricted access to several bank accounts of the Reit and the master lessees.
To safeguard the interests of EH-Reit unit holders, MAS has directed the Reit manager to obtain DBS Trustee's approval before making any payments or transfers of the Reit's funds, among other steps.
THE BUSINESS TIMES