Del. Judge Blasts Fraud Claims In Eagle Hospitality Ch. 11

Law360 (May 26, 2021, 8:14 PM EDT) -- A U.S. Bankruptcy Court judge declared Wednesday he was considering referral of an alleged $2.4 million federal Paycheck Protection Program fraud to the U.S. attorney's office, during a blistering ruling on a preliminary injunction motion aimed at the original sponsors of Eagle Hospitality.

Judge Christopher S. Sontchi's remark came during arguments on a bid for an injunction filed by debtors EHT US 1 Inc. as well as Urban Commons Queensway, a California leaseholder in the multi-hotel bankruptcy of the U.S. affiliate of Singapore-based Eagle Hospitality Real Estate Investment Trust.

Urban Commons Queensway, which operates the floating Queen Mary Hotel and event...

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