- Sponsor will be seeking EHT to
reconsider decision to deny request to hold a further EGM - Unitholders of a publicly listed
company are well within their rights to requisition the Board to convene an EGM
for considering additional resolutions - Operational
uncertainties are not grounds for denying unitholders’ requests for an EGM
SINGAPORE
– Media
OutReach – 24 December 2020 – Urban Commons (UC), the Los Angeles-based real estate investment and development firm and
Sponsor of Eagle
Hospitality Trust (EHT), will be seeking EHT to reconsider its decision to deny
the request to hold a further extraordinary general
meeting (EGM) to vote on a rights issue and a proposal to retain or reappoint
the current manager of Eagle Hospitality REIT (EH-REIT).
UC
hopes that EHT will respect the democratic process that supports unitholders’ rights.
Unitholders of a publicly listed company in Singapore are well within their
rights to requisition the Board of Directors to convene a further EGM as they
see fit.
“The whole point of an EGM is to allow unitholders
to vote on key issues that require their approval. It is the unitholders who
own shares in EHT, and they are the most appropriate persons to decide what is in
their best interests. Operational uncertainties are not grounds for rejecting a
request to call for a further EGM,” said Mr Howard Wu, Founder and Principal at
UC.
“UC’s proposal includes the elements of a
cash injection, refinancing plan, and several amicable resolutions which many
major unitholders supported. SC Capital’s proposal, on the other hand, was
chosen without considering the potential risks and implications which will not
benefit the unitholders. We strongly urge all interested parties to give us a
chance to work together to resolve the outstanding issues for the good of all unitholders,”
added Mr Wu.
UC’s blueprint to rescue the REIT focuses
on the following steps:
1. Refinance the defaulted debt quickly, as we already have a term sheet in
place.
2. Raise the minimum amount to sustain the REIT and to minimise dilutions
to unitholders which we believe is lesser dilution than SC Capital’s proposal.
3. Come up with an amicable solution to restart and sustain the operations
of the REIT.
The
issuer is solely responsible for the content of this announcement.
About Urban Commons
Urban
Commons is a Los Angeles-based real estate investment and development firm with
a successful track record of developing, repositioning, and rebranding assets
throughout the United States. The company focuses on improving under-managed
and underutilized assets by developing innovative solutions that promote
optimal economic, social, and environmental returns.
Since its
founding in 2008, Urban Commons has owned, operated and developed a variety of
real estate properties including several dozen hotels, apartments, retail,
office, and senior care, throughout the United States including the development
of nearly one million square feet of commercial retail space.
For more
information on Urban Commons, please visit: https://urban-commons.com/
