MM2 Asia, which runs the cinema chain, is trying to resolve the matter while prioritising minimal disruption to business operations
CATHAY Cineplex, operated by mainboard-listed media company mm2 Asia, has received letters of demand from the landlords of two of its cinemas for about S$2.7 million in alleged rent, legal costs and other monies owed.
MM2 Asia said in a bourse filing on Monday (Feb 3) night that the cinema chain received the letters from lawyers representing the landlords on Jan 28.
The landlords of its cinema outlet in Century Square – Century Square LLP and the Management Corporation Strata Title of the mall – have asked for payment of a total of S$479,185.74 in rental arrears and other monies, as well as S$893.80 in legal costs by Feb 10.
Meanwhile, the landlord of its cinema at Causeway Point has asked for the sum of S$1,000,000 to be paid to its trustee, HSBC Institutional Trust Services, by Feb 3 and S$1,203,677.85 by Feb 10. The sum comprises rental arrears and other monies. Cathay Cineplex must also pay to the landlord S$555.90 in legal fees.
Both properties are owned by Frasers Centrepoint Trust.
MM2 Asia said in the bourse filing that the board is actively engaging with the landlords to resolve the matter promptly and amicably, while prioritising minimal disruption to business operations.
The board is seeking legal advice in relation to the letters, including possible restructuring of Cathay Cineplex’s business and financial obligations.
The company will make further announcements when there are material developments.
Shares of mm2 Asia closed S$0.001 or 8.3 per cent lower at S$0.011 on Monday, before the announcement.
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