Showdown over Movietowne… as PATT moves to collect $11m lease debt

Senior Reporter

anna-lisa.paul@guardian.co.tt

The owners of the MovieTowne complex at Invader’s Bay, Mucurapo, and the management of the Port-of-Spain Infrastructure Company (POSINCO) and the Port Authority of T&T (PATT) seem heading for a showdown.

This after MovieTowne was forced to suspend certain operations yesterday, after bailiffs moved to levy on them to recover more than $10 million in rent owed to POSINCO.

MovieTowne was reported to be owing POSINCO a total of $10,904,121.23 in arrears, which was accrued between 2021 to the present.

However, in a statement last evening, MovieTowne said the move was “illegal” and “high-handed”, adding it attempted to pay the outstanding arrears via cheque but was refused and will now head to the court to rectify the matter.

Earlier, POSINCO said it exercised the right of re-entry to take possession of the premises leased to the Trinbago Commercial Development Company Limited (TCDC) around 10 am.

Multicinemas Trinidad Limited, Cineplex Cinemas Limited and the Trinbago Commercial Development Company Limited (TCDC) together formed MovieTowne, which was opened in November 2002. That entity had been leasing the land from POSINCO.

But POSINCO said yesterday’s action was undertaken, “as a consequence of breaches of the terms and conditions of the existing Deed of Lease between POSINCO and TCDC.”

The exercise resulted in bailiffs locking down the MovieTowne administrative office and the Banquet Hall, which led to all personnel being ejected from these two locations.

Despite this, the only indication to tenants that something was amiss was when they received a letter notifying them that the head lease issued to MovieTowne had come to an end.

In the document, which bore the letterhead of the Port Authority of T&T and was signed by POSINCO’s acting Chief Executive Officer Lenin Oliviere, officials advised, “Take notice that the head lease has come to an end. PoSINCO has exercised its rights under the head lease to terminate the head lease and to take possession of the premises.”

The letter explained that with the head lease having come to an end, this meant “any agreement which you had with TCDC has also come to an end.”

Existing tenants were informed, “It is therefore necessary that new arrangements should be made to ensure that you continue in occupation of the premises without any interruption.”

Tenants were also instructed in the letter that “all rent is to be remitted to POSINCO with immediate effect.”

The occupiers of shops, restaurants and kiosks were given 48 hours to sign the letters and contact the acting Divisional Manager Property Development, Kyle Reid, to facilitate new commercial arrangements with POSINCO in order to continue operating on the premises.

Close to two hours after, general licensed bailiffs Ramkarran Ramparas and Vidal Ramparas conducted a walk-in possession of the complex.

POSINCO thereafter issued a release disclosing they had been in discussions with TCDC for several years regarding the breaches in an effort to avoid yesterday’s outcome, while maintaining its rights under the Deed of Lease to re-enter.

Claiming that those discussions had not borne fruit, POSINCO assured efforts were made to ensure the re-entry exercise was done “peaceably and in a manner that would be the least disruptive to the tenants and other stakeholders of TCDC.”

Officials said all efforts would be made to continue to treat the matter with the sensitivity required and in accordance with the laws of T&T. They added that efforts had been made to ensure the lockdown was not disruptive to tenants and visitors to the mall.

Guardian Media understands the TCDC will have a grace period in which to resolve the issue with POSINCO.

Unjustified action

In a response last evening, TCDC condemned the action by the PATT and the POSINCO and said it was initiating legal action against both parties.

In advising its customers that business at the establishment will continue uninterrupted, MovieTowne management labelled the actions of the PATT and POSINCO as “high-handed, illegal and bullying.”

“TCDC has offered to settle all outstanding rental sums which are not in dispute and attempted to pay such sums by cheque. The cheque was returned notwithstanding current discussions to settle all matters, including disputed amounts. PATT and POSINCO thereafter attempted illegal and unlawful entry via its private agents,” the TCDC claimed.

MovieTowne management said its legal team had described the actions of POSINCO and PATT as “unjustified and illegal.”

The statement said legal proceedings will “commence shortly” against PATT and POSINCO, inclusive of injunctive relief to ensure redress to TCDC and the protection of its tenants and employees.

“TCDC reassures our patrons that our Port-of- Spain facility continues to be open and our team will spare no effort to ensure their safety and maintain and enhance the premium service levels that families and clients have come to expect and deserve.”

Tenants caught

by surprise

Yesterday’s re-entry exercise at MovieTowne did not include the seizure or removal of any assets from the premises by agents of POSINCO.

Guardian Media was told the bailiffs had been met with some “push-back” after the initial announcement, following which Ryan Chin was summoned to the mall.

Chin, who is the son of MovieTowne owner Derek Chin, said he was “trying to sort things out” when he was approached by reporters.

Even as he promised to speak later on, security guards physically began assaulting media personnel, as they demanded reporters and photographers vacate the premises.

A skirmish ensued as a foreign national shoved a photographer and reporter as the media attempted to get pictures of Chin surrounded by guards. Another reporter was also assaulted as other guards rushed to grab his phone to prevent him from recording the incident.

Tenants, who spoke to Guardian Media on condition of anonymity, said this was the first they were aware of the situation, as their rental agreements had been made with TCDC.

Expressing fear that hundreds would be on the breadline if the MovieTowne complex was shut down, one business operator said, “We are working hard every day and paying our rent on time.”

He asked, “What would happen to us now?Many of us have taken loans for our businesses, so how will we be able to service these debts?”

Acknowledging the MovieTowne employees would have been hostile as a result of the move by the bailiffs, another owner described the events as, “an unpleasant surprise.”

Even as this was unfolding upstairs, visitors to the complex strolled through unaware of what was taking place.

In an email sent to all tenants at 2 pm yesterday, TCDC officials advised, “Despite the information being circulated by the media, the mall and cinema operations will remain open for businesses. Any further developments on this situation will be circulated and informed.”

Several tenants yesterday said they believed the matter had been related to the revelation two months ago that MovieTowne owner Derek Chin was owing the Board of Inland Revenue (BIR) $93 million in unpaid taxes and penalties.

In an interview in May, Chin confirmed to Guardian Media that the debt spanned a period of 20 years.

The location at Invader’s Bay, Mucurapo, is 21 years old, and was the first in the cineplex franchise, which also has outfits in San Fernando, Tobago and Guyana. The MovieTowne branch in Chaguanas was closed just after the COVID pandemic in November 2020.

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