EHT to use maiden distribution to pay for sponsor's liabilities

This is in light of failure by Urban Commons to fulfil its obligations under the master lease agreements

Published Thu, May 28, 2020 · 09:50 PM

Singapore

MONIES that were originally intended for Eagle Hospitality Trust's (EHT) maiden distribution to unitholders will now be re-directed to fund critical expenses of the US-based hotel trust and its underlying portfolio.

This is in the light of the "continuing failure" by the trust sponsor and master lessee, Urban Commons, to discharge its obligations under the Master Lease Agreements (MLAs), EHT said in a filing to the Singapore Exchange on Wednesday night.

EHT urgently needs to protect and safeguard the asset value of its portfolio. "There is currently no alternative source of monies to fund the portfolio preservation expenses other than the monies originally intended to fund the distribution and the rem…