SINGAPORE: Cathay Cineplexes is set to undergo creditors’ voluntary liquidation amid its financial woes, operator mm2 Asia announced on Monday (Sep 1).
The board has resolved that it is no longer feasible for Cathay Cineplexes to continue operating, given its financial position and the absence of restructuring options, among other things, mm2 Asia said in a filing on the Singapore Exchange.
The cinema operator had attempted to negotiate “amicable resolutions” with the various creditors, but it was unable to arrive at “mutually agreeable restructuring outcomes” of its payment obligations owed to the creditors, it added.
The board resolved to appoint Luke Anthony Furler and Tan Kim Han of Quantuma (Singapore) as joint and several provisional liquidators.
An extraordinary general meeting of the members of Cathay Cineplexes and a meeting of the creditors will be convened in due course.
Mm2 last week reported a surge in group net loss to S$122.4 million (US$95.4 million) in the 2025 fiscal year – a substantial increase from its S$1.9 million loss in the year before.
“The second half of FY2025 was exceptionally challenging, especially with the legal and financial issues from our cinema business,” said mm2 Asia executive chairman Melvin Ang then.
“We recognise our cinema landlords as valued partners in our business ecosystem. However, the road to recovery has been longer than anyone expected (and) we can understand their position.”
