Former Cathay cinema operator mm2 Asia gets more time to seek backing for debt restructuring
The High Court on Sept 18 gave the two companies permission to hold meetings with creditors.
Former Cathay cinema operator mm2 Asia and its subsidiary mm2 Entertainment have been granted additional time to seek backing for a debt restructuring. The High Court permitted the two entities to meet with creditors to discuss repayment proposals on September 18, and extended a creditors' moratorium until November 21. However, creditors must still vote on the proposals, which, if accepted, would require the companies to return to court for final approval.
The companies have not disclosed details of their restructuring plans or the scheduled creditor meetings. The move is a crucial step for mm2 Asia to prevent liquidation and continue operations following financial difficulties. The company initially sought protection from creditors in November 2025 after receiving payment demands from UOB and Frasers Centrepoint Trust.
The protection was initially granted for four months in December 2025 but has been extended several times while the companies finalize their debt repayment plans. mm2 Asia had proposed to distribute $12 million among creditors, or 28 cents for every dollar owed, using a $25 million investment from Hildrics Asia Growth Fund. The latest court decision comes after the State Courts heard that the companies still owed the Central Provident Fund Board around $213,000 in unpaid contributions.
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