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 last Friday 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 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 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 S$12mil 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 S$12mil to be paid to creditors will come from a larger proposed S$25mil investment from Hildrics Asia Growth Fund. — The Straits Times/ANN
