On Dec 22, Urban Commons, the erstwhile sponsor of Eagle Hospitality Trust (EHT), said through a press release that a substantial amount of EHT’s cash of around US$25 million “has been spent on professional consultants who are, surprisingly, not collaborating with the sponsor to find a way forward for the benefit of securityholders”. EHT is a stapled security comprising EH-REIT and EH-Business Trust. EH-Business Trust is now dormant but would be activated in the event that SCCPRE Hospitality Management, a unit of SC Group, is voted in as REIT manager, as proposed by DBS Trustee and its consultants Moelis & Company.
Urban Commons put forward a plan to resuscitate EHT with two resolutions to be voted on in an EGM on which details are as yet unknown. Resolution 1 is to recapitalise the trust through a rights issue to raise US$50 million at US$0.075 per unit. Resolution 2 is to retain the current REIT manager.
