On 10 November 2024, entertainment group mm2 Asia revealed that United Overseas Bank (UOB) has issued letters of demand for the repayment of approximately S$74.6 million (US$57 million) from the company and its subsidiaries. This news adds to the growing financial challenges facing mm2 Asia, which has recently announced the voluntary liquidation of its now-closed cinema chain, Cathay Cineplexes.
Details Surrounding the Demand
The letters were sent to mm2 Asia and its subsidiaries—mm2 Entertainment, UnUsUaL Management, mm Plus, and mm Connect—on 7 November. The company is expected to repay the amount within seven days, or UOB may proceed with legal action without further notice.
Financial Woes and Previous Claims
- Net loss of S$122.4 million reported for the 2025 fiscal year.
- The second half of the financial year saw a tenfold increase in net losses.
- Additional repayment demands include S$2.6 million from Frasers Centrepoint Trust regarding a lease and S$905,000 from Standard Chartered Bank.
Legal Considerations
In the letters of demand, UOB indicated its intention to sell shares in mm2 Entertainment and mm Connect if repayment is not made. It also reserves its right to exercise powers regarding a property mortgage linked to mm2 Entertainment.
mm2 Asia is currently seeking legal advice on handling UOB’s demands as it navigates this complex financial landscape and continues to monitor developments closely.