On 20 March 2020, the Managers of Eagle Hospitality Trust (“EHT”) received a notice of default and acceleration to the Facilities Agreement issued on behalf of Bank of America which is acting as the overall administrative agent for the syndicate of lenders that provided USD341Mil to EHT. EHT then quickly went on to ask SGX for a voluntary trading suspension in order to prevent a total share price collapse of EHT while it engages lawyers to re-work out operational, financial and loan negotiation with all the different stakeholders.

1. Weak Sponsor Urban Commons Does Not Have Adequate Financial Resources For Emergency

This should be nothing new. From the Queen Mary incident, most folks already know that Urban Commons live by the hand to mouth. It has been unable to produce timely audited financial statements to the City of Long Beach. Unfortunately, the COVID-19 outbreak totally disrupted its hotel businesses. Even though there...