SINGAPORE – Former Cathay Cineplexes operator mm2 Asia and its subsidiary still owe more than $219,000 in Central Provident Fund (CPF) contributions, with their founder telling a court that demands for further repayments are difficult to meet while the companies undergo a restructuring.
The State Courts heard on Oct 14 that mainboard-listed mm2 Asia owed $8,633.50 while its wholly owned subsidiary mm2 Entertainment had an outstanding amount of $210,843.50.
Their founder, Melvin Ang, who represented both companies in court, said mm2 Asia could settle its outstanding arrears in full by the next hearing on Nov 11.
During the hearing for mm2 Entertainment, the prosecution said the company made a payment of $20,203.50 on Oct 13, but had fallen short of the $50,000 it was previously directed to pay.
Ang said the company hoped to settle all its outstanding contributions by Dec 31, after completing its restructuring. However, when asked how much it could pay in four weeks, he said it hoped to make another $20,000 payment.
$20k to $40k repayments will prolong the matter
The prosecution said repayments of between $20,000 and $40,000 would prolong the matter, given the substantial amount still outstanding.
The court subsequently directed mm2 Entertainment to pay at least $80,000 before its next hearing on Nov 11. Ang pointed out that the company had been granted a moratorium by the High Court and said there had been no staff complaints to the Ministry of Manpower over the CPF arrears.
He said mm2 Entertainment would struggle to meet a court direction to pay at least $80,000 by the next month, citing its financial difficulties and ongoing restructuring efforts. “Asking us to pay $80k by next month before the scheme of arrangement is completed is really difficult,” he said.
Separately, during mm2 Asia’s hearing, Ang initially told the judge that the company had paid “everything” in full on Oct 13, after making an $11,000 payment. However, the prosecution said records showed that $10,438.50 had been paid, leaving a discrepancy of $561.50.
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