SINGAPORE: Former Cathay Cineplexes operator mm2 Asia and its subsidiaries have received letters of demand from United Overseas Bank (UOB) seeking repayment of about S$74.6 million in debts, the entertainment group said in a bourse filing on Monday (Nov 10).
The group and its subsidiaries, mm2 Entertainment, UnUsUaL Management (UMPL), mm Plus, and mm Connect, each received letters on Nov 7.
It added that UOB demanded payment within seven days, or the bank may commence legal proceedings without further reference.
The letters of demand came after months of financial troubles and failed attempts to resolve debts linked to the now-closed Cathay Cineplexes, which ceased operations on Sep 1.
The group’s net loss for FY2025 rose to S$122.4 million from just S$1.9 million a year earlier. This was because the group faced an ‘exceptionally challenging’ second half of FY2025 amid mounting legal and financial issues from the cinema business.
In UOB’s letter of demand to mm2 Asia, a notice was given that the bank reserves its rights to sell mm2 Asia’s shares in mm2 Entertainment and mm Connect.
In its letter to mm2 Entertainment, UOB gave notice that it intends to exercise its power of sale regarding property whose mortgage was granted by the entertainment group in favour of UOB.
The bank also gave notice of its rights to exercise its power of sale in respect of 623,040,780 shares in UnUsUaL Limited.
mm2 Asia said it is seeking legal advice and will continue to monitor the matter closely. Further announcements will be provided by the board when there are any material developments. /TISG
Read also: Will Cathay Cineplexes soon bid its final farewell amid millions in debt?
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