SINGAPORE – Insolvency proceedings brought against beauty and wellness group Mary Chia Holdings and three other parties have been dismissed, although a legal dispute over two loans totalling $350,000 remains unresolved.
The Catalist-listed company announced on Oct 14 that the court had confirmed the dismissal of proceedings brought by Fullink Capital on Oct 13, following compliance with court directions issued on Sept 30.
As part of these directions, Mary Chia transferred $651,498.97 to the court’s account on Oct 6. The amount had previously been placed with the company’s solicitors as security.
It also paid $13,900 in court-ordered costs to Fullink’s solicitors on Oct 9, with receipt confirmed on Oct 12.
The proceedings involved Mary Chia Holdings, Organica International Holdings, Mary Chia chief executive Ho Yow Ping and chief financial officer Su Jun Ming.
Despite the dismissal, the $651,498.97 will remain with the court pending the outcome of an ongoing High Court case concerning amounts claimed by Fullink.
Mary Chia stressed that placing the money with the court “does not constitute an admission of liability” in respect of the disputed amounts.
The company had earlier paid $343,829 on July 21, representing the amount it acknowledged was due.
It continues to contest the remaining sums claimed by Fullink, including disputed default interest, late payment interest and restructuring fees arising from two loans with a combined principal of $350,000.
These issues have yet to be determined by the court.
Fullink issued statutory demand seeking $902,640
The dispute dates back to March, when Fullink issued a statutory demand seeking about $902,640 over loans extended to Organica, a wholly owned Mary Chia subsidiary.
Mary Chia had provided a corporate guarantee for the loans, while Ho and Su were personal guarantors.
Fullink subsequently commenced winding-up proceedings against Mary Chia and Organica, as well as bankruptcy proceedings against the two executives.
At a hearing on Sept 30, the High Court directed that the insolvency proceedings be dismissed once the secured sum of $651,498.97 was paid into court.
Share subscription agreement to raise $1m
Separately, Mary Chia said it had entered into subscription agreements on Oct 6 to raise $1 million in gross proceeds through a proposed share subscription.
The funds are intended to strengthen the group’s financial position, with net proceeds earmarked for working capital and business expansion in China and Thailand.
The proposed fund-raising remains subject to shareholder approval at an extraordinary general meeting, regulatory approvals and other conditions.
The latest development comes as five Mary Chia subsidiaries face separate court proceedings over unpaid Central Provident Fund (CPF) contributions.
CPF arrears
In an Oct 9 filing responding to queries from Singapore Exchange Regulation, the group disclosed that the five subsidiaries owed a combined $103,727 in CPF arrears, based on the CPF Board’s revised computation.
Mary Chia also admitted that it had failed to disclose CPF arrears and court proceedings involving four subsidiaries in an earlier announcement, attributing the omission to shortcomings in its internal reporting and disclosure processes.
In its Oct 14 media release, the group said it had worked with the CPF Board to establish a monthly payment arrangement for its outstanding contributions.
It added that the first monthly instalment had been “paid in full”, and that the relevant subsidiaries would continue making payments according to the agreed schedule.
The five CPF-related cases have been adjourned to Nov 12.
