Cinema network Cathay Cineplexes has been given letters of require demanding payment of about S$ 2.7 million ( US$ 2 million ) in book and other expenses related to its Century Square and Causeway Point activities.
In a bourse filing on Monday ( Feb 3 ) night, mainboard-listed , media company mm2 Asia, which owns and operates Cathay Cineplexes, said it received the letters on Jan 28 from lawyers representing the landlords of the two movie theatres.
The words allege that Cathay Cineplexes owes , Century Square LLP , S$ 431, 494.53 , in hire debt and other volumes, and legal fees of S$ 446.90 for the contract of its facilities at the shopping mall in Tampines.
Cathay Cineplexes has also been asked to pay , S$ 47, 691.21 in rental arrears and other amounts, as well as legal costs of S$ 446.90, to , Century Square’s Management Corporation Strata , Title.
By February 10, both landlords have requested payment.
The letters also allege that Cathay Cineplexes owes S$ 2, 203, 677.85 in rental arrears and other amounts, and , S$ 555.90 in legal costs , to the landlord of its cinema at , Causeway Point.
Of the sum,  , S$ 1 million was to have been paid to , HSBC Institutional Trust Services, which is the trustee of Frasers Centrepoint Trust (FCT), by Monday.  , FCT, which owns the shopping centre in Woodlands, also asked for the rest to be paid by Feb 10.
A letter of demand, usually sent by lawyers, contains a list of demands. If the recipient- in this case, Cathay Cineplexes- does not meet these demands, legal action, such as a lawsuit, may follow.
The board of mm2 Asia said it is “actively engaging” with the three landlords to “resolve the matter promptly and amicably” and to prioritise “minimal disruption to business operations”.
It further stated that it is seeking legal counsel regarding the letters of demand, including a potential restructuring of Cathay Cineplexes ‘ business and financial obligations.
The business stated that it will make additional announcements as soon as there are significant changes.