Cathay Cineplexes Faces More Payment Demands Over Rent

Its parent firm ropes in restructuring expert as part of changes to board, leadership team

- 

Cathay Cineplexes has received additional letters concerning outstanding rent, its parent company mm2 Asia announced in bourse filings on July 29, alongside key changes to its board and leadership team.

This follows an earlier update on July 17, when the entertainment group said it was evaluating all available options to address its financial challenges, including the possible winding up of the cinema chain.

Shares of mm2 Asia sank 16.7 per cent, or 0.1 cent, to 0.5 cent on July 30.

In its latest statement, mm2 informed shareholders that Cathay Cineplexes (CCPL) received a legal claim on July 28.

The claim, dated July 25, was filed in the High Court of Singapore by Lendlease Retail Investments, the former real estate investment trust (Reit) manager for CCPL's cinema lease at Jem.

That role has since been assumed by DBS Trustee acting in its capacity as trustee of Lendlease Global Commercial Reit.

The claim relates to outstanding rental and other payments owed by CCPL under its lease at Jem, incurred before the change in Reit manager.

According to the filing, the claimant is seeking payment of $1.98 million in rent up to March 31, 2022.