The owner of Cathay Cineplexes in Singapore claimed on Thursday ( Feb.6 ) that the slow recovery of the cinema sector had had impacted its ability to make payments in a timely manner.
Mainboard-listed , internet business mm2 revealed earlier this year it had received letters of expectations from the tenants of its , movie venues at Century Square and Causeway Point pertaining to about , S$ 2.7 million ( US$ 2 million ) owed in book and other fees.
Responding to queries from the Singapore Exchange (SGX ), the board of mm2 Asia, which also operates Cathay Cineplexes, said in a bourse filing on Thursday it had received another letter of demand from , Frasers Centrepoint Trust (FCT),  , which owns Causeway Point.
Cathay Cineplexes was asked , on Tuesday to pay , S$ 2, 203, 121.95 in hire debt and other portions to FCT, taking the total amount owed to the tenants to over S$ 4.8 million.
mm2 Asia said the outstanding amounts were” never in debate” but its ability to pay its debt on a timely schedule had been hampered by the ,” slower-than-expected treatment of the film business” arising from the COVID-19 pandemic.  ,
However, the company is working on a repayment plan satisfactory by all parties.
mm2 Asia added that it is constantly working with the tenants to resolve the issue and that it is” severity they warrant” the words.
The movie industry hasn’t experienced any problems, it said, and organization is still running as usual.
Payment OWED NOT EXPECTED TO HAVE “SIGNIFICANT IMPACT” ON Finances
Between Apr 1, 2020, and Jan 31, 2025, mm2 Asia said Cathay Cineplexes had paid about S$ 12 million in rented payment to the tenants, and the outstanding amounts represent 25 per cent of the entire transaction over this time.
After noting that mm2 Asia had reported S$ 10.1 million in cash and cash equivalents in the first quarter of its FY2025 benefits, SGX asked why the hire debt and other portions had not been paid to the tenants.
The payments owed are not anticipated to have a” significant impact” on the company’s finances, according to the board of mm2 Asia, nor would it result in a default under Cathay Cineplexes ‘ other financial facilities.
As for the S$ 10.1 million in cash and cash equivalents, mm2 Asia said they were” not restricted or encumbered in any way”, with a portion of the monies allocated for use in the group’s other businesses.
The company is engaging with the landlords, comprising , Century Square LLP, Century Square’s Management Corporation Strata , Title and FCT, to work on a payment schedule acceptable by all parties.
The company believes that it has the necessary financial resources to fulfill the demands made in the letters of demand.