Media
\nOutReach<\/a>\u00a0– 30 December 2020 –\u00a0Unitholders of Eagle
\nHospitality Real Estate Investment Trust (EH-REIT) today rejected SC Capital
\nPartners (SC) as its replacement Manager at a 2:00 PM EGM (Extraordinary
\nGeneral Meeting), held via a digital webcast. <\/p>\n\u00a0<\/p>\n
Resolutions 1 to 4 were inter-conditional such
\nthat they all had to be carried or fall together, although Resolutions 1, 3 and
\n4 were Ordinary Resolutions (requiring more than 50% of unitholders vote) and
\nResolution 2 was an Extraordinary Resolution (requiring more than 75% of
\nunitholders vote). Votes were submitted electronically no later than 2:00 PM on
\nDecember 27th, 2020. <\/p>\n
\u00a0<\/p>\n
After the results of the voting were announced
\ntoday, it was found the SC was rejected as the replacement manager.<\/p>\n
\u00a0<\/p>\n
Urban Commons (UC), the Sponsor of EH-REIT, said
\nunitholders obviously want additional options, and it reiterated that it should
\nbe allowed to table its plans devised since August 2020, which are in the best
\ninterests of the unitholders. Since August, the Sponsor has attempted to table
\nmultiple plans to demonstrate the best path to save the REIT but it has been
\nblocked from presenting the plans to unitholders.<\/p>\n
\u00a0<\/p>\n
“We believe that unitholders recognise
\nSC’s lack of experience in the US market, which is mature, unique and dynamic<\/i><\/b>“,
\nsaid Howard Wu, Principal at UC. “The current pandemic has highlighted
\nstructural complexities which, thanks to our experience in both the US market
\nand in the REIT property portfolio, puts us in a strong position to address. Ever
\nsince our powers as REIT Manager had been restricted, we have witnessed the
\nREIT’s cash reserves being depleted through unnecessary restructuring efforts
\non the recommendations of the REIT’s advisors and DBS Trustee. How is it
\npossible that our plans, which are designed with the best interest of unitholders,
\nremain unseen by unitholders? At the same time, alternative plans tabled by the
\nTrustee have been rejected by unitholders. Based on today’s vote, unitholders
\nclearly agree with our view that we are not heading in the right direction. Now
\nis the time to unite and act fast to save our REIT, and avoid liquidation at
\nall costs, which would be disastrous to all parties involved<\/i><\/b>.”<\/p>\n
\u00a0<\/p>\n
UC also said that unitholders saw highly
\nuncertain elements at EH-REIT’s EGM that could allow the REIT vehicle to be driven
\ninto more hardship. In particular, the fact that the REIT’s US$89.0 million
\nunsecured loan, taken from Lodging USA Lendco, LLC (Lendco), is currently past
\ndue and in default, whereas EHT’s EGM stated it is not. Lendco has, on 14
\nAugust 2020, sent out the notice of default to EHT. This kind of action creates
\nuncertainty and may cause a major conflict with the lender. Furthermore, the
\nattempt to remove the Manager during a global pandemic is additional, internal,
\nconflict that will likely provoke further divisive actions between parties,
\npotentially resulting in the removal of the master lease. The Sponsor of EHT
\nremains adamant that now is the time to unite to save the REIT.<\/p>\n
\u00a0<\/p>\n
Wu added: “SC’s plan lacked a financial
\ncommitment, of own capital, to the REIT.<\/i><\/b> I can understand why
\nunitholders may be skeptical about a new Manager that has not contributed
\ncapital, and therefore, does not have a real stake in the REIT. We believe this
\nis a major contributing factor in SC not receiving approval, as well as their plan
\nnot outlining the injection or raising of capital to help the REIT through
\nthese turbulent times. In addition, we saw some alarming elements to SC’s
\nproposal that could have caused unnecessary conflict between invested parties
\nat the detriment of unitholder value, and we are pleased that unitholders
\nrecognised the same<\/i><\/b>.”<\/p>\n
\u00a0<\/p>\n
The issuer is solely responsible
\nfor the content of this announcement.<\/p>\n
\u00a0<\/p>\n<\/p><\/div>\n\n
Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"EHT unitholders have rejected SC as replacement Manager; Lengthy restructuring efforts not in best interests of unitholders, causing depletion of REIT’s cash reserves; Sponsor constantly demonstrates its efforts to save the REIT Sponsor’s plans to rescue REIT blocked since August which, if acted upon, would have set the REIT onto path of recovery, instead of …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[60],"tags":[],"_links":{"self":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/10736"}],"collection":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/comments?post=10736"}],"version-history":[{"count":0,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/10736\/revisions"}],"wp:attachment":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/media?parent=10736"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/categories?post=10736"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/tags?post=10736"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}