PETALING JAYA: MBO Cinemas, the third largest cinema chain operator in the country, is facing liquidation due to cash flow problems stemming from the movement control order (MCO) that has been in place since March due to the Covid-19 pandemic, The Edge reported.
The MCO, enforced on March 18, followed by variations of movement restrictions nationwide will remain until the end of the year with most states in the recovery MCO (RMCO) mode. Several states have now reinstated the conditional MCO (CMCO) following a surge in Covid-19 cases.
“We would like to inform you that on Oct 14, 2020, the board of directors of MCAT Box Office Sdn Bhd passed resolutions placing the company in creditors’ voluntary liquidation and appointing Lim San Peen of PricewaterhouseCoopers Advisory Services Sdn Bhd as interim liquidator,” the financial daily reported, quoting a notice to creditors.
The notice also called for a meeting between the creditors and the interim liquidator to discuss the liquidation process.
Liquidation sees a company’s assets sold off to repay creditors prior to being shut down.
According to The Edge, as at Dec 31, 2018, MBO Cinemas’ total assets were valued at RM197.76 million while total liabilities stood at RM111.31 million.
MBO has cinemas in 27 locations nationwide, although only four venues were open as of Oct 12.
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