mm2 Asia’s woes deepen as UOB demands S$74.6 million payment

Lender joins landlords and others in seeking payments from Cathay Cineplexes parent

Entertainment group mm2 Asia on Monday (Nov 10) said in a bourse filing that UOB has demanded repayment of about S$74.6 million from the company and its subsidiaries.

The sum – roughly three times the size of mm2 Asia’s S$26 million market value – follows millions of dollars in payment demands from landlords over the group’s failed Cathay Cineplexes chain.

One of the biggest claims was Frasers Centrepoint Trust’s S$2.6 million demand in relation to its Causeway Point lease. Standard Chartered last month also sent mm2 Asia a S$905,000 payment demand.

UOB’s letter was sent on Nov 7 to mm2 Asia and its subsidiaries mm2 Entertainment, Unusual Management, mm2 Connect and mm Plus.

The last two companies were guarantors, likely for Cathay Cineplexes, which ceased operations in September after entering voluntary liquidation.

“A full loss will raise UOB’s gross bad-loan ratio only from about 1.65 per cent to 1.68 per cent, but lag major peers’ risk profiles,” said Bloomberg Intelligence analyst Rena Kwok, who noted that UOB may initiate legal proceedings if mm2 Asia does not pay.

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“With S$1.36 billion allowances taken in Q3, including a pre-emptive S$615 million provision, the impact is easily absorbed,” she added.

According to mm2 Asia’s financial statement for the financial year ended Mar 31, 2025, it has total borrowings of S$217 million, of which S$201 million are due within a year. Trade and other payables totalled S$102.5 million. The group had S$310 million of current liabilities as at Mar 31, against S$263.6 million of current assets.

mm2 Asia said it is seeking legal advice on UOB’s demand and will continue to monitor the situation.

Earlier in August, the group said it had received eight letters of demand totalling S$17.6 million but said then that it could continue as a going concern.

Shares of mm2 Asia fell S$0.001 or 25 per cent to close at S$0.003 on Monday, after the news.