said: "While bond rollovers will result in additional costs, including higher total interest payable, this will allow the company to retain the cash originally used to redeem the bonds by the end of December 2025 and avoid the risk of breach of redemption obligations under the bond terms at that time."

mm2's stock price in Asia fell by more than 10% after opening on Thursday (July 17), and fell by 14.29% to 0.006 yuan as of 10:14 am.

According to a statement issued by mm2 before the opening of the market, it said that the debt collection letter received by Cathay Cinema on July 16 was not "new" debt, and clarified that the relevant debt is part of the theater rental debt disclosed in the company's February 3 statement this year.

Given the current situation, mm2 Asia said Cathay Cinema is considering all feasible options to meet financial challenges. This includes continuing to coordinate with the owners, and the parties agree to reorganize the existing debts; or seeking to reorganize the existing debts of Cathay Cinema under court supervision procedures and ensuring the continuous operation.

According to mm2A disclosure earlier this year, as of May 19, the total amount of overdue rent liability for Cathay Cinema related to overdue rent reached 10.26 million yuan, of which about 3.07 million yuan involves corporate guarantees provided by the parent company.

As of 10:43 am on July 17, the share price of mm2 Asia was 0.006 yuan, a drop of 57.14% this year.

This means that Cathay Pacific Cinema may eventually stop all operations in Singapore, the company is facing dissolution, and mm2 Asia may suffer investment losses.

In order to deal with the debt crisis of Cathay Cinema, mm2 has tried many possible solutions across Asia. On July 4, mm2 Quanya announced that it plans to privately allocate new shares to raise about 14 million yuan, of which 7.5 million yuan is used to repay debts and 6.5 million yuan is used as working capital.

As theater operations face ongoing challenges, mm2 Asia ("mm2 All Asia") said that its Cathay Cineplex is considering all feasible options to deal with financial problems and does not rule out the possibility of seeking a winding up process.

In the clarification statement on July 17, mm2 All Asia bluntly stated that the operating environment of the theater business has continued to be difficult since the COVID-19 epidemic, and the commitment to maintaining the operation of the theater business in Singapore has not received meaningful support from the owners.

The total value of the bonds currently held by Chen Wencheng is 54 million yuan.

In the aforementioned debt collection letter, mm2 All Asia said that Cathay Pacific Cinema was required to pay rent and other projects owed to the owners of Century Square and Causeway Point, totaling 3.3 million yuan. It was a debt recovery after receiving a statutory debt collection letter from Linkwasha Holdings on July 7 that it had recovered 7.55 million yuan.

Finally, mm2 Quanya said that Cathay Cinema may seek liquidation procedures.

Draged by the Cathay Cinema debt crisis, mm2 All Asia also issued a statement on Wednesday (16th) evening saying that the company had signed a non-binding memorandum of understanding (MOU) with bondholder Tan Boon Seng (transliteration), seeking to extend the bond maturity date for six years by the end of December 2031. The annual interest rate the company needs to pay will increase from the original 5% to 6%.

At the end of May this year, mm2 All Asia plans to sell 21.02% of the equity of listed media production company Vividthree to a private equity fund, with a selling price of 1.734 cents per share; the net asset value of this part of the equity is approximately RMB 1.89 million.