Cathay Cineplex receives letters of demand for unpaid rent and other costs totalling S$2.7M

SINGAPORE: Cathay Cineplex, operated by media company mm2 Asia, is facing legal action over alleged unpaid rent and other costs, with the landlords of two of its cinemas demanding a total of about S$2.7 million, as reported by The Business Times.

The cinema outlets involved are those at Century Square and Causeway Point, both of which are owned by Frasers Centrepoint Trust. According to a bourse filing on Feb 3, mm2 Asia said that the cinema chain received letters of demand on Jan 28, 2025.

Century Square LLP and the Management Corporation Strata Title of the mall, the landlords of the Century Square outlet, have demanded a total of S$479,185.74. This sum includes rental arrears, additional monies, and S$893.80 in legal fees, all to be paid by Feb 10, 2025.

The Causeway Point landlord, represented by HSBC Institutional Trust Services as trustee, has requested that  S$1,000,000 be paid on Feb 3 and an additional S$1,203,677.85 by Feb 10. This total also covers rental arrears and other outstanding fees, with S$555.90 owed for legal costs.

In the filing, mm2 Asia stated that it is working closely with the landlords to resolve the issue quickly and with minimal impact on operations. The board is also seeking legal advice, including exploring possible restructuring of Cathay Cineplex’s business and financial obligations. The company will provide updates as the situation develops.

Shares of mm2 Asia fell 8.3 per cent to S$0.011 on Monday before the announcement. /TISG