It is not feasible for the cinema chain to continue operating as a going concern, parent mm2 Asia says
[SINGAPORE] Entertainment company mm2 Asia on Monday (Sep 1) announced that Cathay Cineplexes will undergo voluntary liquidation.
This comes as the struggling cinema chain is unable to continue operating as a going concern. Cathay Cineplexes faced multiple payment demands from landlords of its outlets over arrears and other monies owed over recent months.
“Cathay Cineplexes 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 these creditors,” mm2 Asia said.
The board of Cathay Cineplexes will proceed with a creditors’ voluntary liquidation of the cinema chain, after determining that it is “no longer feasible” to continue operating as a going concern, the media company said.
Shares of mm2 Asia closed Friday 20 per cent or S$0.001 lower at S$0.004.
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