Cathay Cinema receives new debt collection letters and owes 3.3 million yuan to the owners of Century Plaza and Changdifang
Just on July 9, mm2 Quanya Film and Television Entertainment revealed that it had received a statutory debt collection letter from Linkwasha Holdings to recover 7.55 million yuan. Linkwasha is an affiliate of Cathay Organisation, the former shareholder of Cathay Cinema. In 2017, when mm2 Quanya acquired Cathay Cinema for RMB 230 million in cash, Linkwasha provided a loan of RMB 30 million to mm2 Quanya. At present, mm2 Quanya still owed 7.55 million yuan (including interest) but has not paid off.
mm2Quanya is seeking legal advice on Linkwasha's statutory debt collection letter. It plans to explore all feasible options with Linkwasha and launch a fundraising plan. On July 4, the company announced a private stock sale plan, which will raise about 14 million yuan, of which 7.5 million yuan will be used to repay debts and 6.5 million yuan will be used as working capital.
Century Plaza's management company Management Corporation Strata Title Plan No. 2193 recovered the 86,142 yuan of rent and other amounts owed from Cathay Pacific Cinema, and Century Square owner Century Square LLP recovered the 643,064 yuan of rent and other amounts owed from Cathay Pacific Cinema. Frasers Centrepoint Trust, the owner of Changtifang, recovered the 2.619,235 yuan rent and other amounts owed. Century Square LLP is a wholly owned subsidiary of Xingshi Real Estate Trust.
This is another debt recovery after mm2 Quanya Film and Television Entertainment received a statutory debt collection letter from Linkwasha Holdings to recover 7.55 million yuan of owed debts on July 7. Previously, Cathay Cinema owed the owners of the Jurong East Jem shopping center for 4.32 million yuan of rent, causing the owners to terminate the lease early, and Cathay Cinema in Jem was also forced to close. Cathay Cinema Cinema has reduced its theaters to four.
The relevant arrears must be paid at the latest on August 5 (within three weeks after receiving the letter), otherwise they will be deemed insolvency, Restructuring and Dissolution Act.
mm2A said on Wednesday that the statutory debt collection letter received by the United Company Cathay Cineplexes Pte. Ltd. on July 15 were from the management companies and owners of Tampines Century Plaza and Woodlands Changtifang.
mm2Quanya said: "The company and the Cathay Cinema Board of Directors are seeking legal advice on the above matters and plan to discuss all options with Star Lion Real Estate Trust. The company will issue a separate announcement if there is any significant progress. At the same time, the company reserves all rights."
mm2 Quanya is the guarantor of the relevant places rented by Cathay Cinema in Changtifang, and on the same day, it also received a statutory debt collection letter from the owner.
The debt of Cathay Cineplex, the listed company mm2 Asia, continues to surface. It revealed on Wednesday (July 16) that Cathay Cinema received a new debt collection letter that it had to pay a total of RMB 3.3 million in rent and other projects to the owners of Century Square and Causeway Point.
