mm2 Asia Considering Closing Cathay Cineplexes

Cathay Cineplexes parent company, mm2 Asia, said on July 17 that it is evaluating all available options to address its financial challenges, including winding up the cinema chain.

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Other options include continuing negotiations with Cathay's landlords to restructure existing obligations consensually, and restructuring the cinema's existing obligations under a court-supervised process while preserving operational continuity.

This comes after mm2 said on July 16 that it was proposing a six-year delay to a $54 million bond repayment.

It also faces demands for payment of rental arrears from landlords.

If mm2 opts to wind up Cathay Cineplexes, it would result in the closure of one of Singapore's oldest cinema chains. Originally known as Cathay Cinema, it has been operating since October 1939.

"The group has been committed towards the continued operation of its cinema business in Singapore," said mm2 Asia.