Cathay Cineplexes ropes in restructuring specialist as more payment demands pile up
Cathay Cineplexes' parent company mm2 Asia also announced key changes to board and leadership team.
SINGAPORE - Cathay Cineplexes has received additional letters concerning outstanding rent, its parent company mm2 Asia announced in bourse filings on July 29, alongside key changes to its board and leadership team.
This follows an earlier update on July 17, when the entertainment group said it was evaluating all available options to address its financial challenges including the possible winding up of the cinema chain.
In its latest statement, mm2 Asia informed shareholders that Cathay Cineplexes (CCPL) received a legal claim on July 28. The claim, dated July 25, was filed in the High Court of Singapore by Lendlease Retail Investments, the former real estate investment trust (Reit) manager for CCPL's cinema lease at Jem. That role has since been assumed by DBS Trustee acting in its capacity as trustee of Lendlease Global Commercial Reit.
The claim relates to outstanding rental and other payments owed by CCPL under its lease at Jem, incurred before the change in Reit manager.
According to the filing, the claimant is seeking payment of $1.98 million in rent up to March 31, 2022. In addition, the claimant is asking for interest on the overdue amounts at a contractual rate of 1 per cent per month, calculated daily, amounting to $1.66 million as at Jul 25. The claim also includes legal costs and any other relief the court deems appropriate.
Additionally, CCPL has received a letter of demand dated July 29 from Resorts Concept, the licensor of its premises at E!Hub@Downtown East. The letter demands payment of licence fees, service charges, utilities, interest and related charges totalling $580,000.
The board of CCPL said it is actively engaged in discussions with Resorts Concept to resolve the outstanding arrears. It is understood that CCPL is currently obtaining legal advice on both matters.
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mm2 said it is also seeking its own legal advice in relation to the matters and will make further announcements as and when there are material developments.
New leadership team
Separately, mm2 announced key changes to its board and leadership team following a series of resignations, retirement and new appointments.
It said these changes reinforce its 'commitment to strategic financial and operational restructuring to safeguard its future'.
In view of the current cinema-related creditor negotiations and prolonged financial challenges stemming from the pandemic, mm2 is strengthening its management team and bringing Ang Chiang Meng on board as chief restructuring officer as of Aug 1. He will also join the mm2 board as a non-independent executive director.
Mr Ang is co-founder and managing partner of Argile Partners, a regional consultancy firm, and executive director of R&O Company, specialising in corporate and debt restructuring.
mm2 said he is 'uniquely qualified' to lead mm2's debt management and operational reorganisation with decades of cross-border experience.
'His credentials as a senior accredited director, chartered valuer and restructuring expert will be pivotal in this transition,' it added.
At the same time, Chang Long Jong, mm2's current chief executive officer since April 2017, will retire on Sept 1. The former MediaCorp deputy CEO played a key role in expanding mm2 Asia's footprint in the regional entertainment industry.
Executive chairman Melvin Ang will assume interim CEO responsibilities while the board conducts a formal search for a permanent successor.
Meanwhile, Jack Chia will resign as a non-executive and non-independent director of the company effective July 31, and will also cease to be a member of the audit committee following his departure.
Gary Goh has been appointed managing director of mm2 Entertainment, succeeding chief content officer Ng Say Yong, who will step down from his current role on Aug 31. Mr Ng will transition to the role of chief content adviser, where he will focus on content development.
Following these changes, mm2's board of directors will comprise Melvin Ang as executive chairman, Ang Chiang Meng as executive director, Lai Hock Meng as lead independent director, Tan Khee Giap and Tan Ching Yee as independent directors, and Choo Kee Siong as a non-executive director.
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CNA
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As Malaysia, Thailand and Cambodia hail US tariff discounts, what factors account for the outcome?
KUALA LUMPUR: Three Southeast Asian states involved in ending a recent armed conflict in the region - Malaysia, Thailand and Cambodia - hailed the reduction in tariff rates imposed by the United States as a victory after prolonged talks, and a reprieve for their domestic economies. Experts said the ceasefire, which allowed US President Donald Trump to burnish his peacemaker image, was among several contributing factors that led to substantial tariff discounts for these Southeast Asian countries. Joanne Lin, who is senior fellow and co-coordinator of the ASEAN Studies Centre at ISEAS – Yusof Ishak Institute, said the timing and geopolitical backdrop were crucial in how Malaysia, Thailand and Cambodia secured the reduced tariff rate. 'Their success came just days after a US-endorsed ceasefire was brokered between Cambodia and Thailand, with Malaysia playing a key mediating role,' she told CNA. 'This allowed Trump to publicly take credit for helping end a regional conflict, bolstering his image as a global dealmaker.' Other factors cited included the willingness by Malaysia, Cambodia and Thailand to open up market access to the US, and a desire by Washington to move these three countries deemed to be China-friendly further away from Beijing's orbit of influence. REGIONAL REACTIONS Under the new executive order by Trump on Friday, Malaysia now faces a 19 per cent tariff rate on its goods exported to the US, down from 25 per cent. Fellow Association of Southeast Asian Nations (ASEAN) members Cambodia (36 per cent to 19 per cent) and Thailand (36 per cent to 19 per cent) also struck eleventh-hour trade deals with the US, achieving identical levies to Malaysia. The Philippines (20 per cent to 19 per cent), Indonesia (32 per cent to 19 per cent) and Vietnam (46 per cent to 20 per cent) had announced earlier deals with the US. The US tariff rates imposed on Singapore (10 per cent), Brunei (25 per cent), Laos (40 per cent) and Myanmar (40 per cent) remain unchanged. These levies will come into effect from Aug 7 - a one-week delay from Trump's original Aug 1 deadline. The reductions for the trio come after Thailand and Cambodia agreed to an immediate and unconditional ceasefire brokered in Malaysia, with interventions from China and the US, specifically from Trump who had threatened to not make trade deals with them if the fighting had continued. Malaysia is the only one among the three so far to overtly acknowledge that the ceasefire was a factor in the latest tariff rates meted out to the country. '(Malaysia's role in facilitating the ceasefire) did definitely help,' said Malaysia's Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz at a press conference on Friday, in response to a question by CNA. 'How much? I am not aware. But all the goodwill that was achieved during the call between PM (Anwar Ibrahim) and Donald Trump, where one of the discussions was about the ceasefire, I believe did leave a good impression on Malaysia's role as chairman of ASEAN, in the peacekeeping and ceasefire discussions.' He also stressed that the tariff negotiation with the US was a 'win-win situation' for both countries. 'It also shows the strong bilateral relationship between Malaysia and the US,' he said. His ministry had earlier depicted Malaysia's reduced 19 per cent US tariff rate as a 'significant achievement', as other Southeast Asian neighbours welcomed similarly substantial discounts in their own US levies. MITI said its latest US tariff rate was achieved after a 'thorough and methodical negotiating process' with Washington. 'Most importantly, Malaysia had stood firm on various 'red line' items, and the 19 per cent tariff rate was achieved without compromising the nation's sovereign right to implement key policies to support the nation's socioeconomic stability and growth,' MITI said in a statement. Malaysia's rate - six percentage points lower than initially threatened - comes after Anwar said on Thursday he had spoken to Trump over the phone that morning. Anwar said the pair discussed tariffs "in the spirit and principle of free trade" and that Trump had decided to review the tariff rates imposed on Malaysia. Trump had issued a letter to Malaysia on Jul 7 saying it faces a 25 per cent tariff rate pending negotiations ahead of Friday's deadline. Putrajaya responded by saying it would not budge on 'red lines' in tariff negotiations, including in areas of national interest like halal certification and digital trade. Tengku Zafrul told reporters on Friday that Malaysia rejected US requests to abolish excise duties on alcohol, tobacco and the automotive industry, noting that Malaysia has its own national car with an automotive industry that employs 700,000 people. Malaysia also turned down a US request to abolish foreign shareholder equity limits in certain strategic sectors, and held firm on its stringent digital platform laws, he said. On the other hand, the minister acknowledged that Malaysia had agreed to eliminate tariffs on a number of US agricultural products, and facilitate the importation of halal meat from the US. 'Overall, I think given the many things that we stood firm on, we are quite happy that America understands our position,' he added. 'We want the rate to be fair in the region with our ASEAN neighbours. So I think we are quite satisfied, relatively speaking, where we are versus our ASEAN partners.' The spokesman of the Thai Prime Minister's Office said the agreed tariff rate will help the country maintain its competitiveness. Jirayu Chuopsap said it was a 'win-win approach' that would ensure Thailand maintains its export base and long-term economic stability. He added that it would 'emphasise Thailand's potential in the world trade arena amidst changes in international trade policy'. Thailand had been facing a 36 per cent tariff and the prospect of missing the Aug 1 deadline to make a deal with Washington, amid the ongoing border dispute with neighbouring Cambodia. Meanwhile, Cambodian Prime Minister Hun Manet on Friday welcomed the 19 per cent deal with the US. 'This is the best news for the people and economy of Cambodia to continue to develop the country,' he wrote on social media, also thanking Trump for his 'initiative and decisive leadership' in securing the ceasefire and monitoring its implementation directly until permanent peace and normalisation of relations between Cambodia and Thailand is achieved. Separately, Cambodia's Deputy Prime Minister Sun Chanthol said that his country's vital garment and footwear industry has averted a collapse with Washington's reduction of tariff rates on the country's exports to the US. Cambodia was initially slapped with a 49 per cent tariff rate, before it was reduced to 36 per cent and later to the eventual 19 per cent. "First off the bat, I have to thank President Trump for providing a rate that's competitive vis-a-vis our neighbouring countries and express gratitude to President Trump for his noble intervention for a ceasefire and peace," he said, referring to the armed conflict along the Thai-Cambodia land border. WHAT EXPERTS ARE SAYING Some experts have noted that Trump is using tariffs beyond the realm of trade and as a foreign policy tool for countries to acquiesce to US demands. Analyst Adib Zalkapli, who is the managing director of geopolitical consultancy Viewfinder Global Affairs, told CNA that the Thailand-Cambodia ceasefire deal which Malaysia's PM Anwar brokered was 'certainly one of several contributing factors' behind the substantial tariff discounts for the three countries. 'From a political perspective, the ceasefire gave a convenient and symbolic conclusion to the tariff negotiations,' Adib said. However, he noted that the negotiation process is also complex and influenced by multiple overlapping considerations, and that 'no single issue typically makes or breaks a deal'. 'These negotiations usually involve multiple, interconnected issues - the US wanted greater market access and the removal of non-tariff barriers, while the other countries keen to secure an agreement very likely responded by offering selective concession,' he told CNA. Separately, Lin from ISEAS said that beyond the diplomatic optics of the ceasefire deal, Malaysia, Thailand and Cambodia also showed a 'willingness to engage with Trump's transactional approach to trade'. 'Drawing lessons from fellow ASEAN members like Indonesia and Vietnam (who earlier secured lower rates) they reportedly offered pledges, including greater market access for US goods and commitments to increase American imports. 'Thus, the convergence of strategic timing and economic pragmatism were probably the key factors,' said Lin. 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Anusorn Tamajai, the dean of Rangsit University International College in Thailand, said while the US' involvement in the ceasefire negotiations was an effective strategy that yielded positive benefits for both sides, and enhanced Washington's image in Southeast Asia as a peacekeeper, it was likely not the main reason tariff negotiations were successful. 'I believe it was more about trade liberalisation. That was the key - market access - which helped us successfully strike the deal on Trump-era tariffs,' he said. Despite the more favourable tariff rate, Anusorn said Thailand's exports are likely to slow down for the second half of 2025. This is primarily because for the first five months, the growth rate has 'surged significantly', he said. 'Part of this was due to the US importers accelerating their imports to avoid tariffs, as it was still unclear what the final tariff rate on Thai products would be,' he said, adding that exports growth was likely to rebound in 2026. 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He noted the difference between them and trade agreements, which are usually extremely detailed and have 'very specific language'. But the deals made so far have very few details. He said the deals 'allow the US president to declare victory', while most US trading partners have basically decided not to retaliate to get a relatively lower tariff than what was threatened. 'Both sides of the deal basically get to say, 'We got something out of this, and it's yet to be determined exactly what it is, and as time passes, we'll both interpret the language in the deal in a way that favours us'."
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CNA
a day ago
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Commentary: Tariffs are no longer just about trade, they're Trump's favourite weapon for everything
SINGAPORE: What do a border conflict between Cambodia and Thailand, a former Brazilian president's trial over an attempted coup and deportation flights to Colombia have in common? In earlier times, probably nothing. But in this new political era, the answer is simple: United States President Donald Trump has threatened tariffs to force US partners to accede to his demands on these issues. On Saturday (Jul 26), just days before his Aug 1 tariff deadline, Mr Trump announced on Truth Social that he had spoken to Cambodian Prime Minister Hun Manet and was about to call acting Thai Prime Minister Phumtham Wechayachai, warning them that the US '[did] not want to make any deal, with either country, if they are fighting". The two Southeast Asian nations agreed to an immediate and unconditional ceasefire on Monday, after talks mediated by ASEAN chair Malaysia. It's hard to say if Mr Trump's warning was heeded. However, the incident does highlight an important truth: To Mr Trump, tariffs are one of the most powerful tools in the US foreign policy arsenal, and it is important to weaponise them instead of siloing trade off from non-economic goals. This gamble appears to be paying off – to an extent. THE NEW COST OF DOING BUSINESS WITH AMERICA Instead of retaliating, countries have chosen to pursue trade deals by offering favourable terms for Washington. The United Kingdom, Japan, Indonesia, Vietnam, the Philippines, the European Union and South Korea have already reached some sort of deal. Analysts had earlier warned that Mr Trump's plans would draw counter-tariffs that could plunge the world into a disastrous trade war. And for a while, that retaliation appeared to be underway. Yet, those concerns have faded. The US and China have de-escalated to 30 per cent and 10 per cent respectively, while Canada is holding off on retaliatory tariffs as they seek a trade deal with the US. Even the EU, whose trade ministers had created a 'trade bazooka' to fire back at Washington, held back from confrontation. There are several reasons for this acquiescence. In the case of the EU, the bloc was beset by internal divisions on how harsh retaliation should be. Many member states were unwilling to risk more economic damage to key industries such as distillers and pharmaceuticals. Some ostensibly wanted to absorb the tariff blow and move on, perhaps also holding out hope that Mr Trump would change his mind. Nonetheless, a pool of evidence suggests that Mr Trump's tariffs are bringing him foreign policy victories. Colombia agreed to receive militarised deportation flights after tariff threats, while both Canada and Mexico agreed to increase border security. Call it appeasement, if you must. But most countries seemingly acknowledge that tariffs are the new cost of doing business with America, and that they will persist even beyond the Trump administration amid a lack of pro-trade voices in the American political landscape. In response to a new normal with a more protectionist America, the most urgent need for governments would be to secure a relatively low tariff rate in comparison to neighbouring states. A SHARP BUT BRITTLE WEAPON Still, tariffs have their limits. They might be useful at forcing countries to the negotiating table – but emerging questions may blunt their effectiveness. First is the issue of sanctity of agreements. If governments are to offer concessions, especially on security issues, in exchange for lower tariff rates, they must be assured that US officials will keep their word. There are already indications of Mr Trump or his negotiators unilaterally changing the terms of deals. Vietnam was reportedly dismayed by Mr Trump's 20 per cent announcement, having believed its negotiators secured an 11 per cent tariff rate. Japanese trade negotiator Ryosei Akazawa pushed back against US Treasury Secretary Scott Bessent's claim that their trade framework would be reviewed quarterly. No written text has been published for either deal, much less signed. Still, each report of an arbitrary change could make US partners more suspicious and less willing to cooperate with Washington's demands. Second is the issue of resolve. Given the number of times Mr Trump has backed down from hardline tariff positions or carved out exemptions, his targets may begin to treat his threats less seriously as they doubt his resolve. Take, for example, the case of Brazil. Mr Trump just declared a 50 per cent tariff rate on Brazil for its 'witch hunt' against his ally Jair Bolsonaro, its former president facing trial for an attempted coup. Despite the hefty overall tariff, the blow was softened by the exclusion of several sectors, such as aircraft parts and orange juice. Brazilian Treasury Secretary Rogerio Ceron even remarked that it was a 'more benign outcome than it could have been'. As the 2026 midterm elections approach, more governments may doubt Mr Trump's willingness to hurt his economic scorecard, creating diminishing returns for each new tariff threat. MAKING LINKAGES A LIABILITY More broadly, a third concern for Mr Trump is how his tariff policy is changing the policy calculations of US allies and partners. His willing weaponisation of America's economic leverage suggest that he would just as willingly use American technological or security links to coerce other countries. As researchers from the Washington think tank the Centre for a New American Security observed, Mr Trump's tariff policy has led to concerns about dependence on US cloud service providers for artificial intelligence capabilities. In the short term, governments are likely to play along with Mr Trump's tariff threats to avoid a debilitating blow to their economies. They will offer concessions and likely grit their teeth if the terms of their deals are unexpectedly altered. But under these circumstances, each successive tariff will conjure disgruntlement and suspicion, doubly so if Mr Trump later backs down. Moreover, they will reinforce the discomforting notion that any kind of reliance on America could become a liability. Tariffs are undoubtedly a powerful weapon for the Trump administration, but they might undermine the network of partners and allies that made America a formidable power.
