In May 2019, for EHT’s IPO portfolio, its sponsors, Urban Commons capitalised the future cash flow from The Queen Mary and sold the vessel into EHT for US$139 million. It was this financial engineering that alerted The Edge Singapore to the issues faced by EHT, which included the sponsors defaulting less than a year later on the master leases of the other 17 assets in EHT.
On July 13, DBS Trustee, in relation to Eagle Hospitality Trust, announced that the US Bankruptcy Court has approved the motion, filed by the Chapter 11 Entities, to reject the lease and operational agreements relating to the Queen Mary Long Beach property including the long-term ground lease agreements between the City of Long Beach and Urban Commons Queensway (UCQ). UCQ is one of the Chapter 11 entities.
On June 4, 2021, the Chapter 11 Entities filed a motion with the US Bankruptcy Court to, to seek approval for the rejection of the Queen Mary agreements and UCQ surrendered the Queen Mary Long Beach property to the City of Long Beach, which was the lessor of the asset. The motion was filed on July 7.
