SINGAPORE: Cathay Cineplexes has received a statutory demand for S$3.4 million (US$2.7 million) owed for its rental of its cinema premises in Jem.In a bourse filing on Wednesday (Jul 2), mainboard-listed media company mm2 Asia, which owns and operates Cathay Cineplexes, said the cinema chain received the demand on Tuesday from solicitors of the landlord.In the statutory demand - a note served to debtors - the landlord asked Cathay Cineplexes to pay the sum of S$3,446,748.26 owed, or to secure or compound the sum to the landlord's reasonable satisfaction, by Jul 22.If Cathay Cineplexes fails to do so, it shall be deemed to be unable to pay its debts, according to the demand.A contractual interest rate of 1 per cent per month, calculated on a daily basis from when the sum is due and until the date of payment will continue to accrue on the balance sum owed to the landlord, it added. The board of mm2 Asia said it is seeking legal advice on the matter and will make further announcements when there are material developments. It added that it understands Cathay Cineplexes' board is similarly seeking legal advice regarding the statutory demand.The Cathay cinema at Jem shopping mall was closed on Mar 27 after the cinema chain received a notice of termination from landlord DBS Trustee Limited - as a trustee of Lendlease Global Commercial REIT - to discontinue the lease.At the time, mm2 Asia owed about S$4.3 million in rent and said it was shutting the outlet "in view of the challenges facing the cinema industry since the onset of COVID-19". “This is a result of ongoing negotiations with the landlord for more than a year,” it added.Cathay Cineplexes had also previously received letters of demand for about S$2.7 million in rent and other costs owed in relation to its operations at Century Square and Causeway Point.