Latest news with #LinkwashaHoldings
Independent Singapore
3 days ago
- Business
- Independent Singapore
Will Cathay Cineplexes soon bid its final farewell amid millions in debt?
Photo: Google Maps/Ivan Lim SINGAPORE: Cathay Cineplexes may soon bid its final farewell, with owner and operator mm2 Asia announcing it is evaluating 'all available options'—including winding up the cinema business—to address the millions of dollars in financial challenges it is facing. In a bourse filing on Thursday (July 17), mm2 Asia said, 'The Group has been committed towards the continued operation of its cinema business in Singapore. 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.' Channel News Asia (CNA) reported that in the last three years, Cathay Cineplexes has closed six outlets across Singapore, including its West Mall outlet in February. Only four are still operating today. Before announcing its West Mall outlet closure, mm2 Asia received letters of demand from landlords of its Century Square and Causeway Point outlets, seeking S$2.7 million in unpaid rent and other costs . That figure has since risen to over S$3 million. More demands have come in this month. The landlord of its former Jem outlet is seeking around S$3.4 million in rental arrears, while Linkwasha Holdings is demanding repayment of S$7.56 million from a S$30 million loan Linkwasha provided in 2017, which helped fund mm2 Asia's acquisition of Cathay Cineplexes from Cathay Organisation. The company said that while it has repaid its loan over the years, the outstanding amount is now due by July 28. In a separate bourse filing on Wednesday (July 16), the company also proposed to extend the maturity date of a S$54 million bond deal originally due December 29, 2025, to December 30, 2031. mm2 Asia said it is reviewing all options in light of its recent receipt of various statutory demands and outlined three possible paths forward: To continue negotiations with Cathay Cineplexes' landlords with the aim of restructuring existing obligations consensually To pursue a scheme of arrangement under a court-supervised process to restructure the cinemas' debts while keeping operations running Or to pursue the winding up of Cathay Cineplexes In February, Cathay Cineplexes launched its 'Save Our Screens' campaign in a bid to keep its cinemas running. However, the move drew flak from cinema-goers who faced issues using their vouchers. mm2 Asia said it would make further announcements should there be any material developments regarding legal demands or lease-related matters. 'Shareholders are advised to exercise caution when dealing in the securities of the company and to refrain from taking any action in relation to their shares which may be prejudicial to their interests,' it added. /TISG () => { const trigger = if ('IntersectionObserver' in window && trigger) { const observer = new IntersectionObserver((entries, observer) => { => { if ( { lazyLoader(); // You should define lazyLoader() elsewhere or inline here // Run once } }); }, { rootMargin: '800px', threshold: 0.1 }); } else { // Fallback setTimeout(lazyLoader, 3000); } });
CNA
3 days ago
- Business
- CNA
Cathay Cineplexes operator mulls closing down its cinemas to address 'financial challenges'
SINGAPORE: Cathay Cineplexes' operator is mulling several options – including winding up the cinema business – as it struggles with millions of dollars in debt. Mm2 Asia, which owns and operates Cathay Cineplexes, said in a bourse filing on Thursday (Jul 17) that it is evaluating all available options to address its "ongoing financial challenges". "The group has been committed towards the continued operation of its cinema business in Singapore," said mm2 Asia, which is listed on the Singapore Exchange (SGX). "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 around three years, leaving four outlets still in operation. In February, mm2 Asia revealed that it had received letters of demand from the landlords of its Century Square and Causeway Point cinemas for S$2.7 million (US$2.1 million) that it owed in rent and other costs. The amount owed is now more than S$3 million. This month, the landlord of Cathay Cineplexes' shuttered outlet at Jem shopping mall demanded payment of about S$3.45 million in rental arrears, while Linkwasha Holdings is seeking more than S$7 million in repayment. Mm2 Asia borrowed S$30 million from Linkwasha Holdings in 2017 to finance the acquisition of Cathay Cineplexes from Cathay Organisation. The majority of the loan has been repaid, but Linkwasha Holdings has asked for the outstanding amount to be paid by Jul 28. On Wednesday, mm2 Asia also announced that is has proposed to extend the repayment deadline for a S$54 million bond deal from December this year to Dec 30, 2031. CATHAY'S AVAILABLE OPTIONS With the difficult operating environment and the "recent receipt of various statutory demands", mm2 Asia said it is evaluating options, including three that it outlined. The first is to continue negotiations with landlords with the aim of restructuring existing obligations consensually. The second option is to seek a scheme of arrangement to restructure existing obligations under a court-supervised process while continuing operations, and the third is to pursue a winding up of Cathay Cineplexes. In an exclusive interview with CNA in February, mm2 Asia's founder and executive chairman Melvin Ang said he was optimistic about the cinema business. 'I am still very passionate, and I want to continue to maintain and grow this business,' he said at the time, adding that the company wanted to "push on".
