Cathay Cineplexes Faces Payment Delays Due to Slow Industry Recovery

Cathay Cineplexes Faces Payment Delays Due to Slow Industry Recovery

Cathay Cineplexes, owned by media company mm2 Asia, is facing challenges in making timely payments to landlords due to the slow recovery of the cinema industry following the COVID-19 pandemic. The company owes approximately S$2.7 million (US$2 million) in rent and other costs to landlords at Century Square and Causeway Point.

In response to queries from the Singapore Exchange (SGX), mm2 Asia acknowledged the outstanding amounts but attributed the delay to the slower-than-expected industry recovery. The company is working on a payment schedule acceptable to all parties.

Mm2 Asia also received a letter of demand from Frasers Centrepoint Trust (FCT), owner of Causeway Point, for S$2,203,121.95, part of the total owed amount. The company is actively engaging with the landlords to resolve the matter and assures that cinema operations continue as usual.

While the outstanding payments represent 25% of the total rent paid between April 2020 and January 2025, mm2 Asia believes they will not significantly impact the company's financials or trigger a default under Cathay Cineplexes' other financial facilities. The company has S$10.1 million in cash and cash equivalents, a portion of which is allocated for other businesses.

Mm2 Asia is confident in its ability to fulfill the claims under the letters of demand and is working with the landlords to find a mutually agreeable payment schedule.