SINGAPORE – Mary Chia Beauty & Slimming Specialist appeared in court on Sept 10 over outstanding Central Provident Fund (CPF) contributions, amid separate financial and legal troubles involving its listed parent company.
The State Courts heard that the beauty company had $50,208 in outstanding CPF contributions.
A partial payment of $11,291 had been made the day before.
A company representative said a payment plan had been worked out with the CPF Board, with an officer from the board determining the amount to be paid for each instalment.
Under the arrangement, the company would make the current payment and pay one month of arrears.
Noting that an arrangement was in place between the CPF Board and the company, the court adjourned the matter to Oct 8.
Mary Chia Beauty & Slimming Specialist, incorporated in May 1994, operates salons offering beauty and wellness services, including slimming treatments.
It is wholly owned by Catalist-listed Mary Chia Holdings, which was incorporated in April 2009.
Ho Yow Ping, chief executive of Mary Chia Holdings, has been a director of the subsidiary since its incorporation.
Parent company faces insolvency proceedings
Separately, Mary Chia Holdings is embroiled in insolvency proceedings brought by lender Fullink Capital.
In March, Fullink issued a statutory demand seeking $902,640 from the home-grown beauty and wellness firm, which had acted as guarantor for a $350,000 loan extended to its wholly owned subsidiary, Organica International Holdings.
Following disputes relating to the loan repayments, Fullink claimed the full outstanding amount as immediately due, together with late-payment interest and other fees under the loan and settlement agreements.
Mary Chia disputed additional charges imposed on the debt, including late-payment fees, default interest and restructuring fees, which it argued may be excessive and legally unenforceable.
Fullink subsequently commenced insolvency proceedings against Mary Chia, its chief financial officer Su Jun Ming, Ho, and Organica.
In July, Mary Chia Holdings said it had paid Fullink $343,829 in debts it did not dispute, along with $14,000 in costs ordered by the High Court.
It continued to dispute the remaining $558,811 claimed by Fullink.
At a July 17 hearing, Mary Chia and its related parties sought to stay the insolvency proceedings until the court ruled on their challenge to the disputed charges. The High Court instead stayed their challenge pending the outcome of the insolvency proceedings.
In response to queries from Singapore Exchange Regulation in May, Mary Chia’s board said the group could continue operating and meet its financial obligations if Fullink’s claims succeeded fully in court, with support from its controlling shareholders if needed.
