mm2 unit receives payment demand for S$6.3 million from creditor
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[SINGAPORE] A unit of embattled entertainment group mm2 Asia has received a payment demand for S$6.3 million, the company said in a Wednesday (Dec 31) bourse filing.
The subsidiary, mm2 Entertainment (mm2E), on Dec 28 received a letter of demand from solicitors representing an individual named Yi Xianhuang. This concerned alleged amounts owed under various investment agreements in relation to movie productions, as well as a refundable deposit for a television series, the filing said.
The 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.
The letter seeks full payment by Jan 9, failing which Yi may take action against mm2E without further reference.
Yi had previously sent a letter of demand for S$18.9 million to another of mm2 Asia’s units, mmLive.
Earlier in 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. However, the protection does not extend to its subsidiaries, such as mm2E and mmLive.
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mm2 Asia suspended trading of its shares after its board assessed that the group could not prove its ability to continue as a going concern. The stock last traded at S$0.003 on Nov 10.
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