Cathay Cineplexes operator mm2 hires debt restructuring specialist as it faces more payment demands; CEO Chang Long Jong to retire

The parent company of Cathay Cineplexes, mm2 Asia, has announced several changes to its boardroom.

In a bourse filing on the Singapore Exchange on Tuesday (July 29), mm2 said that Ang Chiang Meng will be joining as Chief Restructuring Officer from Aug 1.

Ang is the co-founder and managing partner of regional consultancy firm Argile Partners. He is also the executive director of R&O Company, which specialises in corporate and debt restructuring.

Mm2 said that Ang is "uniquely qualified" to lead mm2’s debt management and operational reorganisation, due to his decades of experience in Singapore, Southeast Asia, greater China, and offshore financial hubs.

“His credentials as a senior accredited director, chartered valuer and restructuring expert will be pivotal in this transition,” it added.

The move comes as Cathay Cineplexes has received more letters of demand concerning outstanding rent and other arrears.

Sent by Resorts Concept, the licensor of its premises of E!Hub@Downtown East, mm2 said that the letter demands payment of licence fees, service charges, utilities, interest and related charges amounting to $580,000.

Cathay, which is Singapore’s oldest cinema chain, also received a claim from solicitors acting for Leadlease Retail Investments 3 over its now-shuttered premises at Jem shopping centre.

The claim is for outstanding rental fees up to March 31, 2022, of more than $1.98 million and interest amount to around $1.66 million as of July 25.

Mm2 previously received letters of demand for more than $3 million from the landlord of its Century Square and Causeway Point cinemas.

The embattled company previously said in July that it is considering several options, including winding up its cinema business.

Six Cathay Cineplexes cinemas have closed in the last three years, with the remaining four in operation at Causeway Point, Century Square, Downtown East and 321 Clementi.

CEO Chang Long Jong to retire

In other boardroom changes, Chang Long Jong, mm2’s current chief executive since April 2017, will retire on Sept 1.

Mm2 said that Chang, who was formerly Mediacorp's deputy CEO, played a key role in expanding the company’s footprint in the regional entertainment industry.

The company's founder Melvin Ang will be interim CEO as it searches for a permanent successor, according to mm2.

Gary Goh has been appointed managing director of mm2 Entertainment, succeeding Ng Say Yong, who will become its chief content advisor to focus on content development.

Meanwhile, Jack Chia will retire from his position as mm2's non-executive and non-independent director from July 31.

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Chingshijie@asiaone.com