Cathay Cineplexes operator may close 4 remaining cinemas in S'pore as debts not repaid

With just four outlets left in Singapore, the owner of Cathay Cineplexes is contemplating shutting all its cinemas down to tackle mounting debt.

On Jul. 16, mm2 Asia announced it sought to postpone the deadline for paying a S$54 million bond by six years, from December 2025 to December 2031, The Straits Times reported.

The extension would result in additional costs and higher interest at 6 per cent a year.

However, it would help the company preserve cash and avoid defaulting on the bond.

During the six years, mm2 would be able to "explore strategic options", ST quoted the company as saying.

But its financial woes do not end there.

Repayment demands

In a separate filing on Jul. 16, mm2 Asia said it has received a repayment demand for a total of S$3.3 million in rental arrears and other items from the landlord of its Century Square and Causeway Point cinemas.

It has until Aug. 5 to pay the full amount, or secure or compound the sum to the reasonable satisfaction of Frasers, the landlord, according to ST.

Previously on Jul. 2, mm2 was similarly asked to pay S$3.4 million to the former landlord of its Jem cinema after it closed on Mar. 27.

Then, on Jul. 9, another repayment demand came from Linkwasha Holdings for S$7.6 million, due on Jul. 28.

It is the amount outstanding from the S$30 million mm2 borrowed in 2017 to finance the acquisition of Cathay Cineplexes from Cathay Organisation, according to CNA.

Based on a financial statement released in November 2024, mm2's cash position was S$10.1 million as of Sept 30, 2024.

More support needed

Despite shutting down six cinema outlets since 2022, mm2 told CNA it has been "committed towards the continued operation of its cinema business in Singapore".

"However, such commitment requires the support from its landlords which has not been meaningful despite the difficult operating environment for cinemas and the wider retail industry over the past years caused by, amongst other things, the Covid-19 pandemic."

Between Feb. 21 and Mar. 31, 2025, the existing Cathay cinemas ran a "Save Our Screens" campaign to boost sales.

Voucher sets consisting of 10 movie tickets and 10 sets of popcorn and drink combos were sold for just S$100.

Evaluating options

To address these financial challenges, mm2 said it is exploring three options, CNA reported.

The first is to continue negotiations with the landlords to work towards restructuring current obligations consensually.

The second option also aims to restructure current obligations, but by seeking an arrangement to do so under a court-supervised process while continuing to operate the cinemas.

The final option is to terminate and dissolve the Cathay Cineplexes business.

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