MAS and CAD Commence Joint Investigation into Officers Responsible for Managing Eagle Hospitality Trust

Singapore, 5 June 2020… The Monetary Authority of Singapore (MAS) and the Commercial Affairs Department (CAD) of the Singapore Police Force have launched a joint investigation into current and former directors, and officers responsible for managing Eagle Hospitality Trust (EHT), in connection with suspected breaches of disclosure requirements under section 203 of the Securities and Futures Act (Cap. 289).

  1.     The investigation stems from a referral by the Singapore Exchange Regulation (SGX RegCo). This follows a review that was announced by MAS and SGX RegCo on 20 April 2020 into possible breaches of relevant laws and regulations as well as listing rules in relation to the issues surrounding EHT. The scope of the investigation will be widened if the evidence obtained reveal that other offences may have been committed.
  2.     EHT is a stapled trust comprising Eagle Hospitality REIT (EH-REIT) and Eagle Hospitality Business Trust. Trading of EHT units was voluntarily suspended on 24 March 2020, 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 (i) place with EHT the full sum of security deposits due under the master lease agreements, and (ii) make timely rental payments since December 2019.

 

Source: Monetary Authority of Singapore