SINGAPORE: Cinema chain Cathay Cineplexes has been issued letters of demand requiring payments of about S$2.7 million (US$2 million) in rent and other costs owed in relation to its operations at Century Square and Causeway Point.
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 letters allege that Cathay Cineplexes owes Century Square LLP S$431,494.53 in rental arrears and other amounts, and legal costs of S$446.90 for the lease of its premises 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.
Both landlords have asked for payment by Feb 10.
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 added that it is seeking legal advice over the letters of demand, including a possible restructuring of Cathay Cineplexes’ business and financial obligations.
The company said it will make further announcements when there are material developments.
