mm2 Asia’s Cinema Chain Struggles to Pay Arrears Amid Slow Recovery
mm2 Asia says slower-than-expected recovery of the cinema industry hit the cinema chain’s ability to pay its arrears on a timely basis.
Rental Arrears Reach S$2.7 Million
THE S$2.7 million in rental arrears by Cathay Cineplex to the landlords of its two cinemas represents a quarter of the total payment it owed between Apr 1, 2020, and Jan 31, 2025.
Partial Payment Made, But Arrears Remain
The cinema chain, operated by mm2 Asia, has paid back S$12 million in rent owed to the landlords, said the mainboard-listed media company in a bourse filing on Thursday (Feb 6).
Company Responds to SGX Queries
The company was responding to queries from the Singapore Exchange (SGX) on the letters of demand that Cathay Cineplex received for rent and other costs owed.
Reasons for Delayed Payments
SGX asked why the rental arrears and other amounts have not been paid back to the respective landlords, despite mm2 Asia having reported S$10.1 million in cash and cash equivalents in its results for the first half of the year.
SGX also asked if the payment amounts were being disputed by Cathay Cineplex, and if the cash and cash equivalents were restricted or encumbered in any manner.
Conclusion
The slower-than-expected recovery of the cinema industry has had a significant impact on mm2 Asia’s ability to pay its arrears on time. While the company has made partial payments, the remaining arrears remain a concern. The company’s response to SGX queries highlights the challenges it faces in resolving these outstanding payments.
FAQs
Q: How much are the rental arrears owed by Cathay Cineplex?
A: The rental arrears are S$2.7 million, representing a quarter of the total payment owed between Apr 1, 2020, and Jan 31, 2025.
Q: How much has mm2 Asia paid back in rent owed to landlords?
A: The company has paid back S$12 million in rent owed to landlords.
Q: Why did mm2 Asia struggle to pay its arrears on time?
A: The slower-than-expected recovery of the cinema industry was the main reason for the delay in paying arrears.
Q: Are the payment amounts disputed by Cathay Cineplex?
A: The company did not specify whether the payment amounts are being disputed.
Q: Are the cash and cash equivalents restricted or encumbered?
A: The company did not provide information on whether the cash and cash equivalents are restricted or encumbered.
