DBS Trustee will comply with a directive by the Monetary Authority of Singapore to remove the current REIT manager of Eagle Hospitality Trust. A potential resuscitation bid for the trouble-plagued REIT will also be announced “imminently”.
See also: MAS moves to oust the manager of Eagle Hospitality Trust
The so-called notice of intention was issued by the regulator cum central bank on Oct 26, as the REIT manager was deemed incapable of complying with MAS’ rules and regulations. The REIT manager, EH-REIT Management has also committed multiple breaches of the Securities and Futures Act.
EHT, which is involuntary suspension, has defaulted on some US$341 million in debts. Past and present directors are under joint investigations by MAS and the Commercial Affairs Department for a litany of possible offences.
According to DBS Trustee in its Oct 28 announcement, Moelis & Company, which has been appointed financial adviser, has received “diverse” proposals from interested parties keen to attempt a rescue of EHT's assets.
“The selection of the final candidate will be announced imminently,” says DBS Trustee.
The bidder will also be the replacement as the REIT manager.
