Forensic accounting probe launched into EHT sponsor Urban Commons

Fiona Lam

Published Mon, Jun 29, 2020 · 09:50 PM

Singapore

FTI Consulting, as chief restructuring officers of Eagle Hospitality Trust's (EHT) managers, has commenced a forensic accounting investigation into EHT sponsor Urban Commons and its master lessees.

The EHT managers, acting through the special committee, as well as Eagle Hospitality Real Estate Investment Trust's (EH-Reit) trustee, DBS Trustee, directed FTI to do so.

The scope of the work agreed with FTI for the forensic accounting investigation includes, among other things, reviewing and analysing the fluctuations of the financial statements of the master lessees, which are wholly-owned by Urban Commons.

Under the probe, FTI will also compare the sources and uses of the master lessees' funds to the payment of fixed and variable rents by the master lessees to the master lessors as well as the various reserves, capital expenditure and other payment obligations in the master lease agreements (MLAs). This includes whether there was any failure by master lessees to apply funds received from the hotel operations towards the rents for the mo…