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Wed Dec 30 2020-3: 40 pm
The proposed change of a manager for the embattled Eagle Hospitality Trust (EHT) fell through Wednesday after stakeholders voted against one of four interconditional resolutions tabled at an extraordinary general meeting (EGM).
The EGM was convened for the appointment and confirmation of SCCPRE Hospitality Reit Management as the new manager of Reit.
EHT is a stapled trust comprising Eagle Hospitality Reit (EH-Reit) and the Eagle Hospitality Business Trust (EH-BT), currently inactive.
The four resolutions included the appointment of SCCPRE as the new Reit Trustee of EH-Reit, the appointment of SCCPRE as the Trustee of EH-BT, the proposed issuance of up to 140 million new stapled securities, and a proposed base fee supplement in order. pay the new Reit manager, whichever is higher, a minimum fee of US $ 4.5 million or 10 percent of the annual distributable income per year.
The second resolution related to the proposed base rate supplement was not approved at the EGM. Consequently, the proposed change of manager and other related matters will not continue.
A fifth resolution was introduced after the first four resolutions were not passed: the removal of EHT. As only 11.6% of the total number of votes were in favor of this resolution, it was not approved either.
The incumbent Eagle Hospitality Reit Management has also been removed as Reit’s manager pursuant to a directive issued by the Monetary Authority of Singapore on November 30.
After the EGM, EHT said it has “limited options” after the proposed change of manager failed and does not have sufficient resources to operate as a going concern given the current circumstances and challenges.
The EH-Reit trustee will consider the options available to EHT with its advisors and will provide updates to the holders of stapled securities in due course.
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