SINGAPORE — The financial troubles surrounding former Cathay Cineplexes operator mm2 Asia have taken another turn, with the company and its subsidiary mm2 Entertainment ordered to make partial payments towards more than S$260,000 in outstanding Central Provident Fund (CPF) contributions owed to employees.
At a court hearing on Wednesday (Aug 19), the two companies were granted a final adjournment to make the required partial payments, with the next hearing scheduled for Sept 16.
The case involves 11 CPF-related charges across the two companies.
MM2 Asia faces three charges alleging failures to make CPF contributions for one employee between November 2025 and January 2026.
MM2 Entertainment faces eight charges involving four employees, relating to contributions for November and December 2025.
While the charge sheets did not specify the amounts involved, the court heard that mm2 Asia had approximately S$22,000 in outstanding contributions, while mm2 Entertainment owed about S$241,000.
The companies are therefore facing a combined outstanding amount of more than S$260,000.
Companies say cash flow is constrained by restructuring
The CPF cases first came before the courts on March 18, 2026.
At Wednesday’s hearing, mm2 Asia founder and executive chairman Melvin Ang Wee Chye told the court that the companies’ ability to make CPF payments had been constrained by an ongoing scheme of arrangement.
According to the court proceedings reported by CNA, funds were not expected to become available until the restructuring process was completed.
At the previous court mention, mm2 Asia had been directed to pay at least S$11,000, while mm2 Entertainment was directed to pay at least S$60,000.
Ang said mm2 Asia remained committed to making the payment but was prioritising staff salaries with the funds currently available.
For mm2 Entertainment, the company had paid S$20,000 towards its outstanding CPF contributions one day before Wednesday’s hearing.
The prosecution said the payment would need to be verified and noted that the company would still be S$40,000 short of the amount it had previously been directed to pay.
The court subsequently granted a final adjournment and directed the companies to make the required partial payments in full before the Sept 16 hearing.
The CPF case is only the latest problem for mm2
The latest court action comes against the backdrop of a much broader financial crisis at mm2 Asia.
The entertainment group has been trying to restructure its finances after accumulating significant liabilities and facing demands from creditors.
Its cinema business has been particularly hard hit.
Cathay Cineplexes, which mm2 acquired in 2017 as part of a deal valued at about S$230 million, ceased operations in September 2025 after mm2 announced that the cinema company would enter creditors’ voluntary liquidation. Singapore’s High Court later described mm2 as facing numerous financial challenges while seeking to restructure its affairs.
The company’s problems have extended well beyond cinema operations.
In April 2026, The Business Times reported that the High Court had extended moratorium orders protecting mm2 Asia and mm2 Entertainment from creditor actions, giving the companies additional time to work on a debt-repayment and restructuring plan.
A separate Straits Times report noted that a proposed S$14 million fundraising exercise involving about 1.9 billion new shares had fallen through after the conditions of the placement agreement were not satisfied.
MM2 recorded S$199.4 million net loss
The group’s latest financial results show just how severe the situation has become.
According to mm2 Asia’s FY2026 results filed with the Singapore Exchange, the group recorded a net loss of S$199.4 million for the year ended March 31, 2026, compared with a S$92.4 million loss a year earlier.
The filing also stated that the group’s current liabilities exceeded current assets by S$203.3 million, while it was in a capital deficiency position of S$219.6 million at the reporting date.
Trading in mm2 Asia’s shares had already been suspended in November 2025 after the company said it was unable to demonstrate that it could continue as a going concern.
What happens next?
For employees affected by the unpaid CPF contributions, the immediate focus will be whether the companies meet the court-ordered partial payments before the next hearing.
For mm2 Asia, however, the CPF case represents only one part of a much larger fight for financial survival.
The company has been pursuing restructuring arrangements while seeking protection from creditor actions. Its earlier fundraising effort failed, and its financial statements continue to highlight significant liabilities and uncertainty surrounding its ability to remain a going concern.
The prosecution said the prescribed fine for a first-time offender ranges from S$1,000 to S$5,000 per charge, with sentencing left to the court.
For now, the companies have been given one final opportunity to make the required partial payments before returning to court on Sept 16.
And that is where the story could become even more consequential: the CPF dispute is unfolding while mm2 Asia attempts to convince creditors that its restructuring plan can succeed — after its cinema business has already collapsed and a major fundraising effort has fallen through.
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