SINGAPORE: Cathay Cineplexes will undergo creditors' voluntary liquidation amid its financial woes, operator mm2 Asia announced on Monday (Sep 1).
It is no longer feasible for Cathay Cineplexes to continue operating given its financial position and the absence of restructuring options, among other things, mm2 Asia said in a filing on the Singapore Exchange.
The cinema operator had attempted to negotiate “amicable resolutions” with the various creditors, but it was unable to arrive at mutually agreeable restructuring outcomes of its payment obligations owed to the creditors, it added.
An extraordinary general meeting of the members of Cathay Cineplexes and a meeting of the creditors of Cathay Cineplexes will be convened in due course.
Mm2 last week reported a surge in group net loss to S$122.4 million (US$95.4 million) in the 2025 fiscal year – a substantial increase from its S$1.9 million loss in the year before.
"The second half of FY2025 was exceptionally challenging, especially with the legal and financial issues from our cinema business," said mm2 Asia executive chairman Melvin Ang then.
"We recognise our cinema landlords as valued partners in our business ecosystem. However, the road to recovery has been longer than anyone expected (and) we can understand their position."
The operator also noted that its cinema segment faces "pronounced challenges", with attendance not yet fully rebounding following COVID-19 disruptions, competition from streaming platforms and tight operating margins.
Six Cathay Cineplexes cinemas have closed in around three years, leaving four outlets still in operation, with mm2 Asia owing its landlords millions in rent.
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It is no longer feasible for Cathay Cineplexes to continue operating given its financial position and the absence of restructuring options, among other things, mm2 Asia said in a filing on the Singapore Exchange.
The cinema operator had attempted to negotiate “amicable resolutions” with the various creditors, but it was unable to arrive at mutually agreeable restructuring outcomes of its payment obligations owed to the creditors, it added.
An extraordinary general meeting of the members of Cathay Cineplexes and a meeting of the creditors of Cathay Cineplexes will be convened in due course.
Mm2 last week reported a surge in group net loss to S$122.4 million (US$95.4 million) in the 2025 fiscal year – a substantial increase from its S$1.9 million loss in the year before.
"The second half of FY2025 was exceptionally challenging, especially with the legal and financial issues from our cinema business," said mm2 Asia executive chairman Melvin Ang then.
"We recognise our cinema landlords as valued partners in our business ecosystem. However, the road to recovery has been longer than anyone expected (and) we can understand their position."
The operator also noted that its cinema segment faces "pronounced challenges", with attendance not yet fully rebounding following COVID-19 disruptions, competition from streaming platforms and tight operating margins.
Six Cathay Cineplexes cinemas have closed in around three years, leaving four outlets still in operation, with mm2 Asia owing its landlords millions in rent.
Continue reading...