Former Cathay cinema operator gets 4-month extension for debt moratorium
A previous plan to raise S$14 million via a placement of 1.9 billion shares had fallen through
[SINGAPORE] The Singapore High Court has extended moratorium orders that protect former Cathay Cineplexes operator mm2 Asia and its unit, mm2 Entertainment, from creditors and legal proceedings.
They were meant to expire on Apr 10, but have been extended to Aug 10, mm2 Asia said in a Tuesday (Apr 7) bourse filing. This gives the embattled entertainment company more time to assemble a debt-repayment scheme.
The extensions are subject to further extension, variation or termination by the High Court.
mm2 Asia applied for the original moratorium on Nov 10, and it was granted on Dec 10, preventing current, pending or threatened proceedings from being lodged or continued against the company.
As for mm2 Entertainment, it previously applied for its moratorium on Jan 30, and received it on Feb 20.
On Apr 1, mm2 Asia said that a plan to fundraise S$14 million via a placement of 1.9 billion shares had fallen through.
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It added that conditions under the placement agreement could not be fulfilled as its circumstances changed materially after being granted the moratorium in December and after its shares were voluntarily suspended on Nov 11.
Shares of mm2 Asia last closed at S$0.003 before their Nov 11 suspension.
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