Another S$7.56M repayment demand hits Cathay Cineplexes; netizens say they knew it was coming and warn it will hit ‘all cineplexes’ soon

SINGAPORE: Just a week after receiving a statutory demand for S$3.4 million owed for its former Jem outlet, Cathay Cineplexes has been hit with another repayment request — this time for S$7.56 million.

Mm2 Asia, the company that owns and operates Cathay Cineplexes, said in a bourse filing on Wednesday (Jul 9) that it received a statutory demand from lawyers representing Linkwasha Holdings.

The demand relates to a S$30 million loan Linkwasha provided in 2017, which helped fund mm2’s S$230 million purchase of Cathay Cineplexes from Cathay Organisation, Channel News Asia (CNA) reported. Linkwasha is a related entity of Cathay Organisation.

The company said it has been repaying the loan over the years, despite pandemic-related losses and the debt burden to finance the acquisition.

As of July 7, when the demand was issued, the company said the remaining amount stood at S$7,550,500, including interest.

According to the Accounting and Corporate Regulatory Authority’s Bizfile portal, Linkwasha, which was formerly Orchard Bowling and Cathay Bowl, wants the outstanding amount paid by July 28. Otherwise, Mm2 Asia must “secure or compound” the sum to Linkwasha’s “reasonable satisfaction” by the same date. If it fails to do so, the company will be deemed unable to pay its debt.

The company said it is seeking legal advice and plans to engage with Linkwasha to explore “all available options” while continuing efforts to raise funds.

The S$3.4 million repayment demanded last week by Lendlease Global Commercial REIT for unpaid rent at Cathay’s former Jem outlet is also due on July 22.

Netizens online said they knew this was coming. One commenter referenced The Buggles’ 1979 hit, saying that just as “video killed the radio star”, streaming will do the same to cinemas. “This is not just going out to Cathay but ALL cineplexes,” he added.

Another wrote, “I don’t even go to the cinemas in Singapore any more when JB screens the same movies for 50% cheaper with more luxurious seats and a better audiovisual system.” /TISG

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