SINGAPORE – Former Cathay Cineplexes operator mm2 Asia and its subsidiary still owe more than $219,000 in Central Provident Fund (CPF) contributions, with their founder telling a court that demands for further repayments are difficult to meet while the companies undergo a restructuring.
The State Courts heard on Oct 14 that mainboard-listed mm2 Asia owed $8,633.50 while its wholly owned subsidiary mm2 Entertainment had an outstanding amount of $210,843.50.
Their founder, Melvin Ang, who represented both companies in court, said mm2 Asia could settle its outstanding arrears in full by the next hearing on Nov 11.
During the hearing for mm2 Entertainment, the prosecution said the company made a payment of $20,203.50 on Oct 13, but had fallen short of the $50,000 it was previously directed to pay.
Ang said the company hoped to settle all its outstanding contributions by Dec 31, after completing its restructuring.
However, when asked how much the company could pay within four weeks, he said it hoped to make another $20,000 payment.
$20k to $40k repayments will prolong the matter
The prosecution said repayments of between $20,000 and $40,000 would prolong the matter, given the substantial amount still outstanding.
The court subsequently directed mm2 Entertainment to pay at least $80,000 before its next hearing on Nov 11. Ang pointed out that the company had been granted a moratorium by the High Court and said there had been no staff complaints to the Ministry of Manpower over the CPF arrears.
He said mm2 Entertainment would struggle to meet a court direction to pay at least $80,000 by the next month, citing its financial difficulties and ongoing restructuring efforts.
“Asking us to pay $80k by next month before the scheme of arrangement is completed is really difficult,” Ang told the court.
Separately, during mm2 Asia’s hearing, Ang initially told the judge that the company had paid “everything” in full on Oct 13, after making an $11,000 payment.
However, the prosecution said records showed that $10,438.50 had been paid, leaving a discrepancy of $561.50.
The prosecution suggested that part of the payment might have gone towards other statutory obligations, including Skills Development Levy payments.
Ang said the discrepancy could have been an error and undertook to settle the remaining $8,633.50 before the Nov 11 hearing.
‘No fund in the company’
At an earlier hearing on Sept 16, the court was told that both companies owed about $213,000 in CPF contributions.
Ang, who had also represented the company then, had cited financial difficulties and an ongoing scheme of arrangement when seeking more time to pay.
“There is no fund in the company,” he had said then, adding that mm2 Entertainment proposed to begin repaying its arrears from January 2027.
mm2 Asia faces three charges over unpaid CPF contributions for one employee between November 2025 and January 2026, while mm2 Entertainment faces eight charges involving four employees for November and December 2025.
Both companies are seeking to restructure their debts through proposed schemes of arrangement, which allow financially distressed companies to negotiate repayment terms with creditors, subjected to creditor and court approval.
What are some aspects of mm2 Asia’s proposed restructuring
On Sept 18, the High Court granted both companies permission to convene creditors’ meetings to vote on their proposals.
It also extended a moratorium protecting them from creditor enforcement proceedings by two months to Nov 21, giving them more time to complete the restructuring.
According to court documents filed on Sept 3 and seen by The Straits Times, mm2 Asia’s proposed restructuring includes a $15 million share placement to MMRA, a subsidiary of private equity fund Hildrics Asia Growth Fund.
The proposed investment involves the issuances of approximately 16.34 billion new shares, alongside cash distributions and debt-for-equity conversion for creditors.
The company also proposes a rights issue to raise up to $10 million.
On Sept 22, mm2 Asia announced that the Securities Industry Council had granted MMRA a conditional waiver from making a mandatory general offer for its remaining shares, subject to conditions including independent shareholder approval.
‘Sad and sorry that we have come to this’
mm2 Asia formerly operated Cathay Cineplexes, which ceased operations in Singapore on Sept 1, 2025, after its four remaining outlets closed amid mounting financial difficulties.
The cinema chain entered creditors’ voluntary liquidation after failing to reach agreements with creditors over its outstanding payment obligations.
The group also has businesses in film and television production and distribution, as well as live entertainment. Trading in mm2 Asia shares has been suspended since November 2025.
Back in court on Oct 14, Ang said he would seek legal advice after the prosecution raised the possibility of resolving the criminal charges while the CPF arrears remained outstanding.
“I feel sad and sorry that we have to come to this situation,” he told the court.
“If we keep coming back and keep not being able to pay, I am sorry.”
He added: “We will try our best to comply.”
