2 S’pore malls demand Cathay Cineplexes pay S$2.7M in unpaid rent & other costs

Cathay Cineplexes operator mm2 Asia gets letters of demand over unpaid rent & other costs

Two malls in Singapore with Cathay Cineplexes outlets have demanded about S$2.7 million in unpaid rent and other costs from the cinema chain.

mm2 Asia, which operates Cathay, said in a bourse filing on Monday (3 Feb) that it had received lawyers’ letters from the landlords of Century Square and Causeway Point.

Source: Google Maps

Century Square landlord demands unpaid rent from Cathay by 10 Feb

The letters of demand were received by mm2 Asia on 28 Jan, said the statement undersigned by mm2 Executive Chairman Melvin Ang.

One asked for S$47,691.21 in rental arrears and other amounts owed to the Management Corporation Strata Title for the lease of a unit on the fifth floor of Century Square.

S$446.90 in legal costs were also wanted.

Another asked for S$431,494.53 in rental arrears and other amounts owed to Century Square LLP for the lease of two units on the fifth floor of the mall in Tampines, as well as S$446.90 in legal costs.

Source: Traveloka

All the amounts are required by 10 Feb, the statement said.

Causeway Point landlord demands unpaid rent from Cathay by 3 Feb & 10 Feb

Separately, a total of S$2,203,677.85 is owed to a trustee of the landlord of Causeway Point.

This comprises rent in arrears and other monies for the lease of premises on the seventh floor of the mall in Woodlands.

Source: Cathay Cineplexes on Facebook

S$1 million of the sum is required by 3 Feb, and S$1,203,677.85 is required by 10 Feb.

Additionally, legal costs of S$555.90 must be paid.

Both malls are owned by Frasers Centrepoint Trust.

Cathay actively engaging with landlords to resolve the matter

Cathay said its board is “actively engaging” with the various landlords “to resolve the matter promptly and amicably”.

Its priority is to minimise disruption to its business operations, it added.

The board is also seeking legal advice over the letters.

This includes “possible restructuring” of Cathay’s business and financial obligations, the company noted.

The company will make announcements on further developments.

Cathay opened newest outlet in Clementi on 1 Nov

The demand for unpaid rent comes about three months after Cathay opened its newest outlet in Clementi on 1 Nov, having taken over WE Cinemas’ operations at 321 Clementi Avenue 3.

WE Cinemas Clementi to be taken over by Cathay on 1 Nov amid ‘resurgence’ in cinema business

At the time, Mr Ang that the company’s “rightsizing” had gone well, with its current structure placing it in “a much better position” for when business rebounds.

Concern had surfaced after Cathay shuttered two cinemas in Orchard and one in Parkway Parade, with its outlet in AMK Hub also closed as the space was to be redesignated for other uses.

Also read: Deadpool & Wolverine movie not showing at Cathay Cineplexes, fans express disappointment

Deadpool & Wolverine movie not showing at Cathay Cineplexes, fans express disappointment

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Featured image adapted from Traveloka and Cathay Cineplexes on Facebook.

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