Eagle Hospitality Trust (EHT) is a real estate investment trust company. Based on its annual report as at 31 December 2019, it had a portfolio that comprised of 18 full-service hotels consisting of nine Upper Upscale hotels, five Upscale hotels and four Upper Midscale hotels with a total of 5,420 rooms and an aggregate valuation of approximately US$1.26 billion located in the U.S. However, as seen from the following headlines, the company has run into problems in recent times. THE STRAITS TIMES Eagle Hospitality Trust entities file for bankruptcy protection in the US PUBLISHED JAN 21, 2021,5.00 AM SGT fy Eagle Hospitality Trust (EHT) confirmed yesterday that 27 of its entities have filed for Chapter 11 bankruptcy in the United States in order to provide the "necessary protection for the benefit of all stakeholders". DBS Trustee, as trustee of Eagle Hospitality Real Estate Investment Trust (EH-Reit), said the aim is to start a process to sell some hotels but this does not preclude the continued exploration of other restructuring options. EHT is a stapled group comprising EH-Reit and the dormant Eagle Hospitality Business Trust. Its stapled securities have been suspended since March 24, 2020, after EH-Reit defaulted on a loan of US$341 million (S$452 million). Eagle Hospitality Trust's former and current directors arrested, out on bail PUBLISHED OCT 5,2020, 7:31 AM SGT SINGAPORE (THE BUSINESS TIMES) - All six of Eagle Hospitality Trust's (EHT) former and current Singapore-based directors were arrested and released on bail on Oct 1 on "reasonable suspicion" over breaches of disclosure rules. This follows from ongoing police investigations, first announced in June, over suspected breaches of disclosure requirements on Section 203 read with Section 331 of the Securities and Futures Act (Chapter 289) of Singapore, said the managers in a regulatory filing on Friday night (Oct 2). EHT's former and current directors out on bail are Lau Chun Wah, Kelvin Peng, Tarun Kataria, Salvatore G Takoushian, Carl Gabriel Florian Stubbe and Ng Kheng Choo. Lau, Tan, Kataria and Takoushian continue to serve on EHT's board, according to its website. (a) Identify THREE reasons for EHT's problems. (6 marks) (b) EHT's case has reinforced your conviction of the important role that auditor plays, given the extent of financial losses that investors suffer when companies become insolvent. Identify and explain the roles that company's senior management, independent directors, regulator and independent auditors play in addressing the agency risk that shareholders face. (12 marks) Eagle Hospitality Trust (EHT) is a real estate investment trust company. Based on its annual report as at 31 December 2019, it had a portfolio that comprised of 18 full-service hotels consisting of nine Upper Upscale hotels, five Upscale hotels and four Upper Midscale hotels with a total of 5,420 rooms and an aggregate valuation of approximately US$1.26 billion located in the U.S. However, as seen from the following headlines, the company has run into problems in recent times. THE STRAITS TIMES Eagle Hospitality Trust entities file for bankruptcy protection in the US PUBLISHED JAN 21, 2021,5.00 AM SGT fy Eagle Hospitality Trust (EHT) confirmed yesterday that 27 of its entities have filed for Chapter 11 bankruptcy in the United States in order to provide the "necessary protection for the benefit of all stakeholders". DBS Trustee, as trustee of Eagle Hospitality Real Estate Investment Trust (EH-Reit), said the aim is to start a process to sell some hotels but this does not preclude the continued exploration of other restructuring options. EHT is a stapled group comprising EH-Reit and the dormant Eagle Hospitality Business Trust. Its stapled securities have been suspended since March 24, 2020, after EH-Reit defaulted on a loan of US$341 million (S$452 million). Eagle Hospitality Trust's former and current directors arrested, out on bail PUBLISHED OCT 5,2020, 7:31 AM SGT SINGAPORE (THE BUSINESS TIMES) - All six of Eagle Hospitality Trust's (EHT) former and current Singapore-based directors were arrested and released on bail on Oct 1 on "reasonable suspicion" over breaches of disclosure rules. This follows from ongoing police investigations, first announced in June, over suspected breaches of disclosure requirements on Section 203 read with Section 331 of the Securities and Futures Act (Chapter 289) of Singapore, said the managers in a regulatory filing on Friday night (Oct 2). EHT's former and current directors out on bail are Lau Chun Wah, Kelvin Peng, Tarun Kataria, Salvatore G Takoushian, Carl Gabriel Florian Stubbe and Ng Kheng Choo. Lau, Tan, Kataria and Takoushian continue to serve on EHT's board, according to its website. (a) Identify THREE reasons for EHT's problems. (6 marks) (b) EHT's case has reinforced your conviction of the important role that auditor plays, given the extent of financial losses that investors suffer when companies become insolvent. Identify and explain the roles that company's senior management, independent directors, regulator and independent auditors play in addressing the agency risk that shareholders face. (12 marks)