The most popular theatre among Malaysians is MBO (MCAT Box Office Co., Ltd.), the third-largest chain theatre in addition to the two largest chain theatres of GSC and TGV. However, according to local media reports such as Sin Chew Daily and China News, MBO is facing liquidation due to cash flow problems and will be facing bankruptcy.
The number of confirmed cases of new coronary pneumonia in Malaysia has been on the rise recently. Malaysia has recently experienced a new wave of epidemics, and the entertainment industry is the most affected by the epidemic.
According to “Sin Chew Daily” and “China News” quoting financial website “The Edge Markets”, MBO may not be able to survive the epidemic. So the board of directors passed a resolution to place the company in the voluntary liquidation of creditors and appoint PricewaterhouseCoopers Wing Road Consulting Services Limited is the provisional liquidator.
According to the report, MBO will enter the liquidation process. “During the liquidation process, the company’s assets were sold to repay creditors, and the company went bankrupt.”
Affected by COVID-19
Originally, MBO owns 27 theatres in Malaysia. But the company announced last Tuesday that it will close 17 of its theatres until further notice. Selangor, Kuala Lumpur, and Putrajaya were affected by CMCO. MBO also temporarily closed five theatres in Klang Valley and one theatre in Sabah.
In addition, MBO’s turnover in the first three months of this year has fallen by 55% due to the impact of the epidemic. Later, as my country implemented the movement control order on March 18. It further caused MBO to have no income at all in the following three months.
According to The Edge Markets report, an internal notice they found mentioned that the board of directors of MCAT Box Office Sdn Bhd passed a resolution to allow the company to enter the voluntary liquidation process. The board of directors also appointed PricewaterhouseCoopers Consulting Services Limited Lim San Peen of the company is the provisional liquidator.
The notice also called a meeting of creditors and provisional liquidators to start the liquidation process. Which included the company’s sale of related assets to be able to repay creditors. Which also meant that the company would be permanently closed.
No further explanation from the official
However, MBO has not made any further explanation on this matter.
The total asset value of MBO Cinemas is 197.6 million Ringgit. The total liabilities are 113.1 million Ringgit.
Prior to this, MBO Cinemas posted on Facebook on the 12th that due to the raging epidemic. MBO has announced the temporary closure of 14 theatres across the country until further notice.
The 14 cinemas that have been closed are located in Sentral Mall, Ipoh Hualin, Anshun, Kepong Park (Brem Mall), Kepong Village Mall, Petaling Jaya Citta Mall. Furthermore, Shah Alam Space U8, Harbour Place, Klang, Elements Mall, Malacca Plaza, Seremban, Kota Tinggi, Skudai Johor and Square One in Batu Pahat.
MBO pointed out that taking into account the high domestic epidemic situation. In addition, the schedule of international film screenings, they decided to temporarily close the aforementioned theatres.
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