Eagle Hospitality Trust Moves Towards Dissolution: No Distributions Expected for Stapled Securityholders

Key Developments in the Termination of EH-REIT

DBS Trustee Limited, acting as the trustee for Eagle Hospitality Real Estate Investment Trust (“EH-REIT”), has submitted a letter to the High Court of Singapore to seek clarification and confirmation that it is entitled to terminate EH-REIT. This development marks a critical step towards the winding up of Eagle Hospitality Trust (“EHT”), comprising both EH-REIT and Eagle Hospitality Business Trust (“EH-BT”).

Major Announcements and Recent Actions

• The REIT Trustee is moving ahead to effect the termination of EH-REIT, following court orders both from the United States and Singapore that authorise the dissolution process.
• US bankruptcy proceedings and the Confirmed Plan for EH-REIT have been formally recognised by the Singapore courts, empowering the Foreign Representative to administer and realise all property and assets of EH-REIT as per the plan.
• The winding up and dissolution of all EH-REIT subsidiaries and related entities, except EH-REIT itself, have been completed.
• The administration and realisation of EH-REIT’s assets in Singapore are also concluded, except for the return of funds to the Liquidating Trust, which must be done in compliance with Singapore court orders.
• The REIT Trustee has sought confirmation from the Singapore Court that it can terminate EH-REIT without further court applications or actions under the EH-REIT Trust Deed.

Impact on Stapled Securityholders

• No Distribution Expected: At the conclusion of the termination process, there will be no distribution to Stapled Securityholders. All remaining assets are required to be distributed to the beneficiaries of the Liquidating Trust, as set out under the Confirmed Plan.
• If there are any funds to be repatriated out of Singapore, the REIT Trustee will make a court application to seek leave, ensuring all actions comply with legal requirements.
• The REIT Trustee has also sought exemptions, clarifications, and consents from the Monetary Authority of Singapore regarding regulatory obligations related to winding up a REIT without an existing manager.

What Investors Should Know

• Potential for Share Price Impact: The announcement that there will be no distributions to Stapled Securityholders upon termination is highly price-sensitive and could negatively impact the value of EHT’s stapled securities.
• Stapled Securityholders are advised to consult their financial advisers, as there is no certainty of receiving any value from the winding up of EH-REIT.
• The REIT Trustee will provide further updates on any material developments, including the winding down of both EH-REIT and EH-BT.

Additional Details

• The process follows previous court orders and the Confirmed Plan, which have been recognised in both the US and Singapore.
• The only remaining steps are the formal court confirmation for termination and, if required, the court’s leave for funds repatriation.
• This entire process is being carried out in a context where there is no existing manager for the REIT, adding regulatory complexity.

Conclusion

The move towards the termination of EH-REIT signifies the end of Eagle Hospitality Trust as an investment vehicle. The clear message for investors is that there will be no remaining value or payout for Stapled Securityholders at the end of this process, and the focus now shifts to compliance with legal and regulatory formalities to complete the dissolution.

Disclaimer

This article is for informational purposes only and does not constitute financial advice, an offer, or a solicitation to purchase or sell any securities. Investors are urged to consult their own professional advisers before making any investment decisions. The value of investments can fall as well as rise, and there is a risk of losing the principal invested. The information is based on official announcements and may be subject to change.

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