mm2 Asia unit receives S$200,000 payment demand from creditor
This is the third demand for payment that mm2 Asia’s subsidiaries have received in two weeks
[SINGAPORE] A unit of the embattled entertainment group mm2 Asia has received a payment demand for S$200,000, the company said in a regulatory filing on Wednesday (Jan 7).
It said that mm2 Entertainment (mm2E), a subsidiary of mm2 Asia, had on Jan 5 received a letter of demand from solicitors representing Ace Financial Services, relating to the alleged non-payment of the S$200,000 sum, as well as interest and legal costs.
Ace Financial Services, a Singapore-based accounting firm, has demanded that the amount be paid within seven days of the letter dated Jan 2, failing which it may commence legal proceedings against mm2E.
The filing noted that the loan was originally extended under a facility agreement dated Oct 10, 2022, between the two parties.
mm2 Asia said that it is currently seeking legal advice in relation to the payment demand, and will make further announcements when there are material developments.
mm2E, a regional film studio, production and distribution company, is known for producing works such as the Ah Boys To Men movies, and is a distributor of films such as Detective Chinatown 1900 and Studio Ghibli animated films.
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This marks the third payment demand that units of parent company mm2 Asia has received in roughly two weeks, following two separate letters of demand sent to its subsidiaries by solicitors representing an individual named Yi Xianhuang.
In total, the three letters of demand relate to alleged non-payments of roughly S$25.4 million.
In early December, the High Court allowed mm2 Asia to be shielded from creditors and legal proceedings for four months while it works out a restructuring plan.
This lifeline came after mm2 Asia received a S$74.6 million payment demand from lender UOB in November, with the group later reporting a net loss of S$39.7 million for the half-year ended Sep 30.
However, the court’s decision does not extend protection to its subsidiaries, such as mm2E and mmLive.
mm2 Asia was formerly an operator of Cathay Cineplexes, before the iconic cinema chain shuttered in Sep 2025 under millions of dollars in debt.
To stave off an immediate winding-up by banks and creditors, mm2 Asia suspended trading of its shares in Nov 2025, after its board assessed that the group could not prove its ability to continue as a going concern.
The counter last traded at S$0.003 on Nov 10, 2025, before its suspension.
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