EHT's unitholders are petitioning for Urban Commons to acquire EHT's assets

In a twist of fate, complaints have been filed in the US courts on Urban Commons, the sponsor of Eagle Hospitality Trust. Urban Commons is being  taken to court over alleged fraudulent transfers in one case, while in a second case, three companies are claiming monies for services rendered. At the same time, seven unitholders have petitioned the Monetary Authority of Singapore to Intervene on the disposal of 15 assets Under U.S. Bankruptcy Proceedings and instead to consider an Urban Commons’ backed proposal to acquire these Chapter 11 properties.  

Based on complaints filed in the US Courts, the latest being on May 24, 2020, Urban Commons is being asked for “recovery of fraudulent transfers”. According to a motion for preliminary injunctive relief in a US court by an entity Urban Commons Queensway (UCQ) which holds the Queen Mary Long Beach, it so turns out that Urban Commons applied and received a loan from the Paycheck Protection Program (PPP) of US$2.4 million. The loan was earmarked for mainly staff expenses by UCQ. Instead, Urban Commons deposited the monies from the PPP loan into its own bank account, according to filings in the US Court.

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