Frasers Centrepoint Trust files S$2.6 million claim against mm2 Asia over Causeway Point lease
It includes 12% annual interest, damages, costs and other reliefs
[SINGAPORE] Frasers Centrepoint Trust has filed a S$2.6 million claim against mm2 Asia, said the entertainment group on Monday (Oct 27), after it guaranteed lease obligations of its now-closed cinema unit at Causeway Point.
The claim arises from a deed of guarantee signed by mm2 Asia in December last year in favour of HSBC Institutional Trust Services, the trustee of FCT, covering lease obligations of Cathay Cineplexes.
The originating claim and statement of claim, dated Oct 23, were received by mm2 on Friday. It includes interest charge of 12 per cent, damages, costs and other reliefs.
The former cinema chain is currently undergoing voluntary liquidation, having ceased operations on Sep 1.
Cathay Cineplexes in July received repayment demands from FCT for a sum exceeding S$3.3 million in rental arrears and for other items for its outlets at Century Square and Causeway Point.
The latest claim follows Standard Chartered’s payment demand on Thursday for S$905,000 of debt.
On Aug 4, mm2 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 company had also brought in a restructuring specialist.
Shares of mm2 Asia ended on Friday flat at S$0.003.
Copyright SPH Media. All rights reserved.
