Mm2 Asia considering closing Cathay Cineplexes amid millions of dollars in debt, Singapore News
CNA reported that winding up one of Singapore's oldest cinema's chains is one of the options mm2 Asia is evaluating to address its "ongoing financial challenges".
It has been operating since 1939, and was originally known as Cathay Cinema.
"The group has been committed towards the continued operation of its cinema business in Singapore," said the Singapore Exchange-listed company.
"However, such commitment requires the support from its landlords which has not been meaningful despite the difficult operating environment for cinemas and the wider retail industry over the past years caused by, amongst other things, the Covid-19 pandemic."
Six Cathay Cineplexes cinemas have closed in the last three years, with the remaining four in operation at Causeway Point, Century Square, Downtown East and 321 Clementi.
Mm2 Asia owes $3.3 million to the the landlords of its Century Square and Causeway Point cinemas.
The Straits Times reported that the company has three weeks to pay the full amount or secure or compound the sum to the reasonable satisfaction of the landlord of both premises, Frasers Centrepoint Trust.
Earlier this month, mm2 Asia received a demand for $3.4 million in arrears from Lendlease Global Commercial Reit, the landlord of its shuttered outlet at Jem Shopping Mall.
Linkwasha Holdings has also served a demand for a repayment of $7.6 million by July 28 — the outstanding amount from a $30 million loan to finance the acquisition of Cathay Cineplexes from Cathay Organisation.
Mm2 Asia said that its other options include continuing negotiations with landlords with the aim of restructuring existing obligations consensually, or try and restructure existing obligations under a court-supervised process while continuing operations.
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chingshijie@asiaone.com
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