[SINGAPORE] In a bourse filing on Monday (Aug 4), Cathay Cineplexes owner mm2 Asia said it has received eight letters of demand for a total of S$17.6 million outstanding, but can continue as a going concern.

The embattled entertainment group added it is continuing negotiations with each counterparty over the claims.

It also stated that its board had assessed its ability to continue as a going concern, which means that it is expected to be able to operate for the next 12 months. Only about S$4.4 million claimed by four counterparties are secured against the corporate guarantee of the company, which is around S$3.1 million as at Jul 31, said mm2 Asia.

The media company also said it has had “positive” negotiations with the group’s creditors, including its proposed plan to defer a S$54 million bond repayment by six years.

Ongoing cost optimisation initiatives, including a potential winding up of Cathay Cineplexes (CCPL), were also stated as a reason for its going concern.

mm2 Asia