In everyday life, it’s common to hear of individuals struggling to pay rent because they can’t make ends meet.
In such situations, tenants often have to negotiate with their landlords, request an extension, or find a way to settle the outstanding amount.
But what happens when businesses owe millions in unpaid rent?
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That’s exactly the case for Cathay Cineplex, a cinema chain in Singapore, which has received legal letters from two different malls demanding payment for outstanding rent.
The total amount owed? A staggering S$2.7 million.
Cathay Cineplex Faces $2.7 Million in Unpaid Rent
Cathay Cineplex, operated by media company mm2 Asia, has been issued letters of demand from the landlords of two of its cinema locations – Century Square and Causeway Point.
The claims include not only rental arrears but also legal costs and other outstanding payments.
According to a bourse filing by mm2 Asia on 3 February 2025, the cinema chain received the legal notices on 28 January 2025.
The letters, issued by lawyers representing the landlords, outline the specific amounts owed by Cathay Cineplex.
Century Square Landlord Demands Payment by 10 February 2025
While landlords won’t resort to extreme measures like splashing paint or making threats, due to legal repercussions, they certainly won’t hesitate to demand what is owed.
In this case, the landlord of Century Square wants Cathay Cineplex to clear its unpaid rent by next Monday (10 February 2025).
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After all, S$2.7 million in unpaid rent is no small sum.
One of the letters specifies the following:
- S$47,691.21 in rental arrears and other amounts owed to the Management Corporation Strata Title
- S$446.90 for the lease of a unit on the fifth floor of Century Square
Another letter demands:
- S$431,494.53 in rental arrears and other amounts owed to Century Square LLP
- S$446.90 in legal costs for the lease of two units on the fifth floor of Century Square
Causeway Point Landlord Issues Deadline for 3 & 10 February 2025
Separately, a much larger sum of S$2,203,677.85 is owed to HSBC Institutional Trust Services, the trustee of Causeway Point’s landlord.
This amount covers rent arrears and other outstanding payments for a unit leased on the seventh floor of the Woodlands mall.
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The repayment deadlines are split into such: S$1 million must be paid by 3 February, with the remaining S$1,203,677.85 due by 10 February.
Additionally, legal costs of S$555.90 must be settled.
Both Century Square and Causeway Point are owned by Frasers Centrepoint Trust.
Cathay Cineplex Aims to Resolve Matter “Promptly”
Since the letters of demand were issued, Cathay Cineplex has yet to make a formal public statement on the matter.
However, in its bourse filing, mm2 Asia assured stakeholders that the company is actively engaging with the landlords to resolve the issue promptly with minimal disruptions to business operations.
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The board is also seeking legal advice regarding the demands, including exploring possible restructuring options for Cathay Cineplex’s business and financial obligations.
Despite the outstanding rent, Cathay Cineplex remains operational, and movie-goers can still catch a film at its cinemas as usual.
Whether the issue will escalate further or be quietly resolved behind the scenes, only time will tell. For now, the only thing Cathay Cineplex seems to be screening is Pay Your Rent.
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