Eagle Hospitality's hotel managers issue default notices to sponsor; FTI hired for restructuring

Singapore

THE managers of Eagle Hospitality Trust (EHT) on Friday disclosed that the master lessees for 16 of its 18 hotels have received notices of default from the relevant hotel managers under their hotel management agreements (HMAs).

This was because the master lessees - under EHT's sponsor Urban Commons - did not provide and/or maintain sufficient working capital for the hotels' operations. There were also additional defaults resulting from their failure to pay management fees and/or to make funds available to pay hotel operating expenses.