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Written by: Kong Fanxu and Zhang Weilun
2021-03-09 18:13
The last update date: 2021-03-09 18:13
The 36-year-old UA Cinemas announced yesterday (9th) that they closed down and entered the liquidation process. Some of its seven cinemas have new decorations and advanced audio-visual equipment. It can be said that "the bad boat still has three catties."
It is rumored that Fengdeli Group, the parent company of MCL Zhouli Film Arts, and Emperor Cinemas are both interested.
Tian Qiwen, chairman of the Hong Kong Film Workers Association, estimates that UA should have considered selling before the liquidation, but because it is paying high rents, "the biggest problem is not that no one is interested, but the best thing to do is to continue the old lease." I believe it will. Only after the completion of the liquidation did someone take action, "then there will be more room for negotiation to reduce rent."
Lin Zhiyuan, founder of Yuanjing Certified Public Accountants, pointed out that the installations, chairs, and screens on-site in theaters are more valuable. If the entire company or the entire assets can be sold to potential buyers, the value obtained should be the highest.
Less than two years have passed since UA Citygate reopened in 2019, with new decorations.
(Photo by Lu Yiming)
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In the past, many theaters in Hong Kong have closed or changed hands. Some experienced film industry professionals pointed out that the process of starting hands-on is not complicated. It has been less than two years since Huicheng reopened in 2019. UA Tai Po Super City was originally scheduled to open this year.
The industry believes that the newer and cleaner theaters may attract consortiums to consider taking over the operation. However, as UA will be liquidated, theoretically, the procedures need to be completed first. Depending on the conditions set by the liquidator, the lease will be negotiated with the owner. There are many barriers in the middle. .
Tian Qiwen, president of the Hong Kong Film Workers Association, said that if buyers take over the UA cinema chain, it will have a positive effect on the industry.
(Profile picture)
Tian Qiwen: After the liquidation, there is more room to negotiate rent reduction
Tian Qiwen, president of the Hong Kong Film Workers Association, said that if buyers take over the UA cinema chain, it will have a positive effect on the industry. He pointed to some new clusters of UA cinema equipment. It is estimated that UA has always wanted to put on the market. , But according to industry sources, UA is taking on expensive rents. "It's too expensive to rent. The boss can't figure it out."
Tian said that at this stage, unless a white warrior appears, it will take a long time. After the completion of the winding-up process and the end of the lease, the consortium will contact the landlord. "The biggest problem is that no one is interested. Lease agreements will have more room for negotiation to reduce rents."
Lin Zhiyuan, founder of Yuanjing Certified Public Accountants, pointed out that generally speaking, the most valuable assets are the lease between the theater and the owner, as well as the on-site installations, theater chairs and screens, etc.
(Profile picture)
Lin Zhiyuan: Theater chairs and screens are the most valuable
Lin Zhiyuan, founder of Yuanjing Certified Public Accountants, pointed out that generally speaking, the most valuable assets are the lease between the theater and the owner, as well as the on-site installations, theater chairs and screens, etc.
However, the value depends on the quality and condition of the relevant assets. If it is a new net, it can of course be retained.
Lin Mingyan, from the perspective of an accountant, the ability to sell the entire company or entire assets to potential buyers should have the highest value.
He also pointed out that during the negotiation period, if the rent is still in arrears with the landlord, the accumulated debts in arrears will increase further and the landlord may also have the opportunity to request the recovery of the property concerned. The value of assets such as screens and chairs will be affected.
He stated clearly that the time required for negotiations between the two parties will be very important.
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