Joint investigation kicks off against Eagle Hospitality Trust's management

Breaches of disclosure requirements under the Securities and Futures Act are suspected.

The Monetary Authority of Singapore (MAS) and the Commercial Affairs Department (CAD) of the Singapore Police Force have launched a joint investigation against current and former directors and managing officers at Eagle Hospitality Trust, a joint statement has confirmed.

The move is in connection to suspected breaches of disclosure requirements. It stemmed from a referral by the Singapore Exchange Regulation (SGX RegCo) and follow a review that was announced by MAS and SGX RegCo on 20 April into possible breaches of relevant laws and regulations as well as listing rules in relation to the issues surrounding EHT.

“The scope of the investigation will be widened if the evidence obtained reveal that other offences may have been committed,” the statement stated.

Trading of EHT units was voluntarily suspended on 24 March, after EH-REIT defaulted on a loan of $341m. The loan default followed the failure of Urban Commons LLC, the master lessee of EHT’s properties, to place with EHT the full sum of security deposits due under the master lease agreements, and to make timely rental payments since December 2019.