SINGAPORE: Authorities are investigating the management of Eagle Hospitality Trust over suspected breaches of disclosure requirements under the Securities and Futures Act.
The Monetary Authority of Singapore (MAS) and the Commercial Affairs Department (CAD) of the Singapore Police Force said in a joint statement on Friday (Jun 5) that they have launched a joint investigation into the trust’s current and former directors, as well as its managing officers.
The investigation was prompted by a referral by the Singapore Exchange Regulation, MAS and CAD said.
“This follows a review that was announced by MAS and the Singapore Exchange Regulation on Apr 20, 2020 into possible breaches of relevant laws and regulations as well as listing rules in relation to the issues surrounding Eagle Hospitality Trust," they added.
The Singapore-based Eagle Hospitality Trust comprises of Eagle Hospitality REIT and Eagle Hospitality Business Trust. It has a portfolio listing 18 hotel properties across the United States, including hotels under the Hilton and Holiday Inn brands.
Trading of its units was voluntarily suspended on Mar 24, after Eagle Hospitality REIT defaulted on a S$341 million loan.
“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,” MAS and CAD said.
The authorities added that the investigation scope will be widened if evidence reveals the possibility that other offences may have been committed.