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STI to cross 3000 boosted by long-term investors
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EdTay88
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09-Mar-2021 14:48
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Dear Martin, Thank you so much for your willingness to take the lead and time to be representative for all of us in the proposed unitholder steering committe....appreciate! Glad to know that they are looking to find a new white knight to continue running the business instead of just trying to sell off the hotels. I got a not so positive reply from DBS Trustee on 5 March 2021 when I tried to ask them to convene another EGM with SCCPRE to restart the business and it appears that they are not willing to call for another EGM if it is still using SCCPRE...maybe they think that the outcome will still be the same. Please see their reply: < Quote> Dear Mr. Tay,
Thank you for your email. We appreciate that it is a difficult and trying period for stapled securityholders of EHT.
A rigorous RFP Process was conducted over a three-month period which yielded a total of 15 interested parties (including the Sponsor whom was also given the opportunity to participate in the RFP Process). The RFP Process was concluded on 28 October 2020 with the selection of SCCPRE Hospitality REIT Management Pte. Ltd. (&ldquo SCCPRE HRM&rdquo ) as the proposed new manager of EH-REIT as it had put forth the most viable and practicable proposal and was the only one acceptable to the lenders of EHT.
In the lead up to the extraordinary general meeting held on 30 December 2020 (" EGM" ), the EH-REIT Trustee, alongside its financial advisers and SCCPRE HRM, as the proposed new REIT Manager, had engaged both institutional and retail stapled securityholders of EHT, including through a dialogue session organised together with the Securities Investors Association (Singapore). Based on the results of the EGM, the resolutions required were not carried and SCCPRE HRM was not appointed as the new manager of EH-REIT.
Subsequent to the outcome of the EGM, the EH-REIT Trustee has had to seek insolvency protection for EH-REIT entities under Chapter 11 of the United States Bankruptcy Code in order to protect and preserve the assets of EH-REIT under the supervision of the United States Bankruptcy Court. While the EH-REIT Trustee continues to work actively with its professional advisers in the best interests of stapled securityholders, the number of viable options that still remain available to EHT at this junction is unfortunately limited.
As announced on 2 March 2021, the EH-REIT entities under Chapter 11 have commenced a marketing process to sell the relevant hotels. Even whilst such sale process is ongoing, EHT continues to explore other restructuring alternatives.
We will continue to provide further updates to stapled securityholders at timely and appropriate junctures. Please refer to EHT&rsquo S update announcements from time to time at www.sgx.com for further details.
Best Regards
BL Yap
DBS Trustee Limited
(in its capacity as trustee of Eagle Hospitality Real Estate Investment Trust)
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Martin108
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09-Mar-2021 14:05
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Hi Supreme, Thank for your kind words. I am not sure how things will turn out. Let' s hope there is a chance to appoint another manager to manage this asset. I have invested in ARA HTrust USD too. With Vaccination program carries out in US, there is a good chance this industry will turn around in later part of the year and I see ARA HTrust will turn around due to a capable manager. I believe the assets in Eagle HTrust is productive under normal economic circumstances and with capable experienced hand. |
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Goldfinger
Supreme |
09-Mar-2021 12:44
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Thanks Martin108. Much appreciated and am sure you will be a great credit and asset to the team. Respect.
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Martin108
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09-Mar-2021 11:59
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Hi Everyone, I have written to SIAS to put up my name for the representation and also ask for the possibility of calling for another EGM. Please see the reply from GM of SIAS as below: Dear Martin We note your interest in joining the EHT ISC. If unitholders have a proposal and want to call for an EGM they can do so with the necessary numbers and holdings. However, the Chapter 11 application is to put a stay on creditor demands and to hopefully find a new white knight, thus preserving value to all stakeholders. EHT is currently not being liquidated. Regards Richard Chris Dyason General Manager Planning, Research & Education SIAS UEN no: S99SS0111B Telephone: 62272683 ............................................................................................................................................... So, is either we try to organzie for an EGM or wait for a White Knight to appear... |
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prophetjul
Master |
09-Mar-2021 08:45
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As long as there is NO criminal repercussion form the authorities, people will just give up. Soon it will spread to the bourse. | ||||
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lawrence83
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09-Mar-2021 08:19
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I think most had give up already....haiz
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CuriousLearner
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08-Mar-2021 13:20
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Good afternoon fellow eht bagholders, Today is the deadline for submission to SIAS. Has everyone submitted their names? |
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prophetjul
Master |
08-Mar-2021 08:30
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If you want to fight, you should ensure justice to the crooks and those who are negligient like DBS Trustees.
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lawrence83
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07-Mar-2021 11:59
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We should at least put up some fight although likely we get nothing in return. 😥
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prophetjul
Master |
05-Mar-2021 13:32
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This bad dream is under teh bridge. Move on. In the mean time, you wished that Wu and his cronies lost their pants in the process. |
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Martin108
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05-Mar-2021 13:23
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Can we still call for an EGM? Since we were not told about the option that trustee would file for Chapter 11? | ||||
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EdTay88
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05-Mar-2021 09:10
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Hi Laksaman57 and Longfellow, I am not an American. If using the term " folks" means American, then using " Hi Mate" must mean an Australian and using " Hi Bro" means Singpaorean, then this does not make sense lah. Btw, I am not a supporter of Taylor Woods or Howard Wu nor any of the directors but just pointing out the commercial elements such as optimising cash burn rate instead of the current rudderless predicament with no REIT manager and many resigned directors (due to fear of lawsuit). Also, there are strategic errors in terms of the previous EGM marketing such that a sub-resolution actually requires 75% support clearance and the managment thought that they can just bull-doze it through at the EGM without buy in from the majority unit-holders such as Taylor Woods/Howard Wu and also angry unit-holders who just want to vent their frustration without consideration of the numerous constraints. The rule of thumb for a succesful AGM in the face of different proposals is to put up different plans and let people choose. Then everyone agrees to respect the wishes of the majority during the voting for a win-win. The last EGM to me is a failure and full of contradiction. What' s the use of having the 2nd resolution whereby 88% voted not to voluntarily wind down the business when to reject the appointment of the proposed new REIT manager basically means default liquidation anyway (as there is just not sufficient cash on the balance sheet anymore)? (i) If the REIT Manager SCCPRE and their own management team was already appointed in Dec' 20, do we even need Moelis and Company and other professional service firm around? (ii) If all had voted for SCCPRE in Dec' 20, then do we have to incur more legal fees right now to fight the current legal dispute from the Amercia Banks in April' 21 which are against the Chapter 11 and EHT taking on additional bank loans to finance the liquidaiton? (iii) Other hospitality REITS have done well minimising operational expenses while still having some income and just waiting for the COVID storm to blow over. But EHT is almost totally down with no leadership structure in place other than waiting for good offers to liqudiate the hotel assets while still burning cash.
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Martin108
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05-Mar-2021 05:54
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I think what EdTay88 had written was logical from a commercial perspective. The vaccination program has started in the US and other parts of the world include Singapore, and it shall ease travel in the latter part of the year. The hospitality industry will recover in 2nd half of the year or even end of the year. If there is proper conservation in cash flow to manage the operation, the value of the hotels will not be that low as now than in the recovering economic state. So if the assets are sold in the current market condition, the hotels will be sold in a depressed price condition and it would not fetch much for unitholders after paying all the outstanding financial amounts. We have to call for another EGM to see if there is any chance to accept the proposal from SCCPRE, which is better than Taylor Woods and Howard Wu, but all unitholders must come in to support, rather than waiting for bankruptcy proceeding like Hyflux case, will not yield anything for investor. |
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laksaman57
Supreme |
04-Mar-2021 22:00
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Good observation 👍
So new with only two maiden posts and pro Taylor Wood ...hmmmm
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EdTay88
Member |
04-Mar-2021 17:02
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Hi prophetul and folks, Stating below my personal thoughts. Yes you are right. Unfortunately, we have to work with Taylor Woods and Howard Wu to obtain their " buy in" if we want to have any hope to re-start the business as they hold 13% of the total votes. I am very certain that both of them voted down SCCPRE in the last EGM as both wanted their own proposed rights issue and the right for their Urban Commons to be given a second chance to continue running the hotel business and with stapled security holders waiving off all their rental default now that COVID pandemic is getting better. When I say work along Taylor Woods and Howard Wu, this does not mean we have to agree to all their demands. But rejecting them via formal lawyer email correpodence without even talking with them on the phone or video conference to find a compromise is a sure way to offend and hurt the ego of other unit-holders. Seriously, I was also disappointed at the handling by the previous directors which seems to indicate hostile relationship between Urban Commons (the former sponsor lead by Taylor and Howard). Anyway MAS has already indicated that they want the REIT Manager held by Taylor and Howard to be fired. This is a base line that needs to be communicated effectively to Taylor and Howard. This will also reassure current unitholders. I do not think most of EHT unitholders would want any new REIT manager to have anything to do with Taylor and Howard based on the financial strength of Urban Commons as well as the corporate governance issue coupled with breaches of Securities Future Act. Saying that, if Taylor and Howard have an alternative rescue plan such as they are able to partner a white knight in to undertake rights issue, then unit-holders should give them an opportunity to present this at an EGM. The EGM should have at least 2 rescue plans such as (i) rights issue advocated by the former sponsor and (ii) the alternate rescue package proposed by SCCPRE (as mentioned by Azure 1984) involving drawing down bridging bank loan and selling a few hotels later on. Then let unit-holders vote to decide to choose their desired proposal after that based on majority and also special 75% resolution for special increase in mgt fees demanded by SCCPRE. By giving choices at EGM, I thought this would have appeased major unitholder Taylor and Howard as this would have accorded to them basic respect as fellow unit-holders for them to vote rationally. Instead what I am seeing is an almost complete breakdown of communication to try to only put up 1 plan acceptable to only the EHT directors. In addition, my feel is there are also a number of angry unit-holders who voted against the appointment of the REIT Manager to vent their frustrations which is understandable given the record time EHT sinked into the bottom of the Ocean right after IPO. I am sure many of you folks have been in business or working in the commercial scene for a long time. If we disagree with somebody, do we need to cut off basic communication to try to find a compromise that benefits everyone and behave extremely hostile? Being hostile and angry at Taylor and Howard unfortunately does not resolve the current impasse. We are just burning cash to keep the professionals (Accounting firm & legal firm) and maintenance of hotels without much income coming in. Your thoughts folks?
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prophetjul
Master |
04-Mar-2021 14:26
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Are Nos. 2 and 3 the cause of this debacle?
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Azure1984
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04-Mar-2021 11:35
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I am prepared cast in favor to appoint a new manager to continue running the business and not accept a single cent of distribution for the next 2 years for them to clear up the mess. SCCPRE looks a good deal to me since they are not proposing cash injection for equity and dilution will be kept to a min. I guess now we will need someone (hopefully the substantial shareholders) to talk to DBS Trustee on the next action plan. Liquidation is really the worst case senario given the current housing depressed valuation. SIAS has also send a request for Informal Steering Committee (ISC) Formation for the unitholders representation in EHT Chapter 11. Question now is: Who is willing to take the lead? Information from SGX (major shareholders): 1. Tang (Gordon) 11.5066% 2. Woods (Ronald Taylor) 7.5740% 3. Chorng Jeng Wu Howard 6.0914% 4. Qian (Jianrong) 5.9709% 5. Yang (Chanzhen) 5.8758%
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EdTay88
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04-Mar-2021 10:41
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Hi Folks holding on to EHT, I think we need to make a decision on whether to continue to proceed with the liquidation of assets and winding down of the Trust to run its current course or to appoint a manager to continue running the business. Going after the parties (Directors, Trustees) for neglience or deceit in a lawsuit now maybe just a waste of money and time and just throwing more good money after the bad. The only party which will win are the lawyers. 1. Personally, I was shocked by the results of the EGM whereby 88% of unitholders voted ovewhelmingly during EGM not to voluntarily wind up EHT, not realising that by rejecting the appointment of SCCPRE in the 1st few resolutions, this is in fact going down the route of bankruptcy and winding up as the cash on the balance sheet are already being depleted. 2. The bank financing interest rates for the special additional bankrupcty loans as well as the professional accounting and legal fees on a monthly basis will mean that most likely, unit-holders will not get back a single cent. 3. If we want to have any residual value, I thought that we need to accept the fact that investment have its risk and that we need to take a haircut and not expect to get 100% back. Hence it is vital to appoint a manager to try to restart all the hotel operations to restart the cashflow earnings. This will also enable EHT to wait for a better time to offload some of the hotels at a better valuation. Not sure whether anyone is in favour of asking for a new EGM to vote again on the appointment of SCCPRE or other managers? I thought that many unit-holders voted irrationally during the last EGM hence only 56% instead of the 75% required mandate were obtained. This plan would most likely enable unit-holders to get back at least 10% to 20% of their investments (assuming enter price is at USD0.60 per unit). If fair valuation of properties recovers eventually and also business picks up, the original investment upfront recovery rate may even go up further. I can only see disaster ahead with not a single cent recovery by unit-holders if current proceedings continued and cash from new bank loan continued to be drawn down.
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laksaman57
Supreme |
04-Mar-2021 10:31
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https://www.google.com/amp/s/www.nytimes.com/2021/03/02/us/coronavirus-reopening-texas.amp.html
"As coronavirus cases fall, states are rescinding mask mandates and reopening businesses and schools, prompting people to emerge after months of isolation despite uncertainty about the pandemic?s future." |
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laksaman57
Supreme |
04-Mar-2021 10:21
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https://www.google.com/amp/s/www.latimes.com/california/story/2021-03-03/california-reopening-speeds-up-despite-covid-19-risks%3f_amp=true
"As daily coronavirus cases plunge, California is barreling toward what would be the widest reopening of businesses, schools and public spaces ..." |
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