Why the regulators now only take action after damage had been so badly done ,after many obvious non disclosure lapsed since last sept ?
The QM huge repair bills and ASAP who sld the hotel to the sponsor were exposed last year , they pretend nothing happen , now the breaches and lapse were too obvious to hide , they have no choice but to issue this joint statement . Looks at the S chips , Midas , we only see talks , warning , but no tangible help to the investors.
" When asked by SGX whether DBS Trustee was aware of the deviations of the payment terms of the master lease rental and if so why it agreed to it and did not disclose this breach to unitholders, the trustee replied: The REIT Trustee did not consider the financial resources of the Master Lessees at the relevant times as the REIT Trustee concerns were on preserving the master lease agreements, which were an essential feature of the structure of EHT as set out in the Prospectus. It should be noted that DBS was the sole financial adviser and manager of EHT&rsquo s IPO.
On Mar 24, EHT&rsquo s manager announced that it had defaulted on a US$341 million loan from Bank of America and its units were suspended from trading on the SGX. The default was blamed on Urban Commons failure to pay the agreed rent.
The above is sufficient to tell all about DBS !
Just another grain of salt , how to act blur when the Sh** had hit the fan ?
Another big Wayang coming soon .
This story just keeps getting more interesting.
Ms Lee is doing a fine reporting job.
https://www.businesstimes.com.sg/compani...t-disputes
It looks like UC was also the gravy train. And the (minority?) investors of UC also victims.
UC bought 12 hotels and sold them to US Hospitality Investments, which is owned by Wu and Woods. Those 12 hotels were then sold to EHT.
The articles says that the sellers of the 12 hotels are still not fully paid. Since EHT would have paid USHI during IPO, USHI should have sufficient cash to make payment to UC. Since it has not, where has the money gone?
It also seems that UC has lent $89m to ASAP, which then lent it to EHT.
So the next time someone invites you to a seminar and persuades you to put your money in a pool for property investments, it will be good to think about what happened here, and how you and your money can be parted forever.
Does it make sense to have a position here? Will this be delisted?
The stock is suspended so you can't make a position.
And it will likely be suspended for awhile. The master lessee is not paying rent to EHT. And EHT is not paying interest to creditors. So EHT's properties will likely be seized and sold to satisfy the creditors. Any leftover will then go to shareholders.
But since the valuation of the properties was 'pumped' before the IPO, and now that US and the world is heading into recession, the properties will likely be sold (if they do) at a large discount to valuation. Which means creditors may be hit with a small loss, and shareholders will unlikely be able to recover a meaningful sum.
Looks like EHT is also being used as a guarantor for the hotel management liabilities of its master leasee (UC).
UC has not been sending rent to EHT, and has also not paid its hotel managers. And it has not provided the returns to its minority investors, as previously reported. UC's financial accounts should be a very interesting read.
Even if there were no pandemic, I am skeptical that EHT unitholders would have received as much distribution as they would expect to in benign economic conditions.
https://links.sgx.com/FileOpen/EHT%20-%2...eID=611220
https://links.sgx.com/FileOpen/EHT_1Q202...eID=611222
A long time ago, JPM investment bankers assumed responsibility for the performance of whatever securities they sold. They sat on the boards of the issuer, provided liquidity when the buyers of its securities wanted to get out, and even interfered in industry competition to ensure the survival of its issuers. In other words, the seller of securities did what they can to ensure that the buyers of securities did not suffer. At least not too much.
Of course, EHT isn't sold by JPM. And investment bankers no longer pride themselves on the quality of the products they sell.
But for bringing to market such a terrible/defective product, I think DBS -- given its reputation -- has done poorly by EHT unitholders, and should bear some responsibility, or do something right for unitholders. At least for the sake of saving their own reputation.
Another shocking discovery where NDAs are signed so that the Master Lessor (EHT's interests) will be responsible for any deficits from the Master Lessee (Urban Commons) at ALL TIMES.
The Trustee/BOD claims it is unaware, while Urban Commons directors claim there was miscommunication.
Update Announcement – (1) Termination of Interest Rate Swap Agreement, (2) Discovery of Interested Person Transactions, and (3) Liabilities of Master Lessees
https://links.sgx.com/FileOpen/EHT%20-%2...eID=611220
