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Proposed change of Eagle Hospitality Trust manager falls through
THE proposed change of a manager for beleaguered Eagle Hospitality Trust (EHT) fell through on Wednesday after unitholders voted against one of the four inter-conditional resolutions tabled at an extraordinary general meeting (EGM).
The EGM was convened for the appointment and confirmation of SCCPRE Hospitality Reit Management as the new Reit manager.
EHT is a stapled trust comprising Eagle Hospitality Reit (EH-Reit) and the currently dormant Eagle Hospitality Business Trust (EH-BT).
The four resolutions included the appointment of SCCPRE as the new Reit manager of EH-Reit, the appointment of SCCPRE as trustee manager of EH-BT, the proposed issuance of up to 140 million new stapled securities, and a proposed base fee supplement in order to pay the new Reit manager the higher of a minimum fee of US$4.5 million or 10 per cent of annual distributable income per year.
The second resolution pertaining to the proposed base fee supplement was not passed at the EGM. Accordingly, the proposed change of manager and other related matters will not proceed.
A fifth resolution was tabled after the first four resolutions were not passed - the delisting of EHT. As only 11.6 per cent of the total number of votes were for this resolution, it too was not carried.
The incumbent Eagle Hospitality Reit Management has also been removed as the Reit manager pursuant to a directive issued by the Monetary Authority of Singapore on Nov 30.
Following the EGM, EHT said it has "limited options" after the proposed change of manager fell through, and does not have sufficient resources to operate as a going concern given the present circumstances and challenges.
EH-Reit's trustee will consider the available options for EHT with its advisers, and provide updates to stapled securityholders in due course.