Former Cathay cinema operator mm2 Asia gets more time to seek backing for debt restructuring

SINGAPORE – Former Cathay cinema operator mm2 Asia and its wholly owned subsidiary mm2 Entertainment can now ask their creditors to vote on plans to restructure their debts.

The High Court on Sept 18 gave the two companies permission to hold meetings with creditors to consider their repayment proposals, said mm2 Asia, which is listed on the Singapore Exchange, in a bourse filing.

The court also extended by two months a moratorium shielding the companies from creditors and legal proceedings until Nov 21, giving them more time to complete the restructuring process.

However, the latest court decisions do not mean that the debt restructuring has been approved, as creditors must first vote on the proposals.

If they accept them, mm2 Asia and mm2 Entertainment must return to court for final approval before the plans can take effect.

The companies have not disclosed the details of their proposals or when the creditor meetings will be held.

The latest development is an important step in mm2 Asia’s attempt to avoid liquidation and continue operating after it ran into financial difficulties.

The cinema operator first sought protection from creditors in November 2025 after the group received several demands for payment, including from UOB and Frasers Centrepoint Trust.

The High Court had then granted the company an initial four-month reprieve from creditors and legal proceedings in December 2025.

mm2 Entertainment received similar protection in February 2026.

The deadlines have since been extended several times while the companies worked on their debt repayment plans and sought fresh funding.

In its December 2025 court application to be shielded from creditors, mm2 Asia said it planned to distribute $12 million among its creditors, or 28 cents for every dollar owed, under its proposed restructuring.

If it is liquidated, mm2 said, the creditors may receive nothing, or at most 2.55 cents on the dollar.

The $12 million to be paid to creditors will come from a larger proposed $25 million investment from Hildrics Asia Growth Fund.

In a July 16 bourse filing, mm2 Asia announced that the private equity firm could inject around $15 million into the company through its wholly owned subsidiary MMRA.

In return, mm2 Asia would issue up to 16.34 billion new shares to MMRA at 0.0918 cent each. The deal would make MMRA a controlling shareholder of mm2 Asia and is a key part of the company’s proposed rescue.

Hildrics Asia Growth Fund is a private equity fund that provides growth capital to mid-tier South-east Asian companies.

The fund is managed by Hildrics Capital, whose chief executive Choo Kee Siong is a former managing director at UOB. Its chief operating officer Wee Teng Chuen is the son of UOB chief executive Wee Ee Cheong.

The court’s latest decision comes after the State Courts on Sept 16 heard that mm2 Asia and mm2 Entertainment still owed the Central Provident Fund Board around $213,000 in unpaid contributions.

This comprised about $15,000 owed by mm2 Asia and around $198,000 by mm2 Entertainment.

A representative for the companies cited their financial difficulties and debt restructuring when asking for more time to pay. The court said it expected another $50,000 to be paid before the next hearing on Oct 14.

mm2 Asia formerly operated the Cathay Cineplexes chain, which closed its four last cinema outlets in Singapore and officially ceased operations here in September 2025.

These were its Causeway Point, Downtown East, Century Square and Clementi outlets. Their closures followed the shutdown of six other outlets over the past few years.

Its other businesses include film and television production and distribution, as well as live entertainment.

Trading in mm2 Asia shares has been suspended since November 2025. The shares last closed at 0.3 cent.