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EH-Reit to 'assess implications' of MAS notice
THE manager of Eagle Hospitality Reit (EH-Reit) said that it is working with professional advisers to "assess the implications" of the Notice of Intention (NOI) it received from the Monetary Authority of Singapore (MAS).
The MAS on Monday issued a NOI to the trustee of EH-Reit to remove its manager and appoint a new one. The notice comes following numerous breaches of the Securities and Futures Act (SFA) by EH-Reit Management, and serious concerns over its ability to comply with rules and regulations, said MAS.
The Reit manager said that these breaches occurred "despite enhanced monitoring as well as repeated and best efforts" by the special committee of the managers to remind its shareholder of the need to comply with regulatory capital requirements.
The NOI by MAS states that such breaches had occurred despite a letter of assurance from the Reit manager's shareholder to MAS.
And given the Reit manager's multiple failures to comply with the SFA, the MAS said it had serious concerns about the manager's ability and commitment to comply with its rules and regulations at all times.
In the meantime, the board of directors of the Reit manager will continue to discharge their fiduciary duties and act in the best interest of Eagle Hospitality Trust and its stapled security holders, it said in a bourse statement on Tuesday.
The Reit manager may give MAS a written statement and supporting documents to appeal the direction before it is made. If not, MAS will proceed on the bases that it has no comments, the manager said.
Trading in Eagle Hospitality Trust stapled securities, comprising EH-Reit and Eagle Hospitality Business Trust, were voluntarily suspended on March 24, after the manager defaulted on a loan of US$341 million.