MM2 Asia has requested a voluntary suspension of the trading of its shares “with immediate effect” on Nov 11.
This comes after its Nov 10 announcement, that it has applied for a moratorium under Section 64 of the Insolvency, Restructuring and Dissolution Act 2018.
The application is intended to facilitate the group’s financial and business affairs, said MM2 Asia on Nov 10. It adds that the board, having received advice, views that a court-supervised reorganisation process is in the “best interests of all stakeholders” as it will “help to preserve the value of the group’s core business and allow management to focus on operational continuity”.
Over the past few months, MM2 has received several letters of demand for payment including a Nov 7 letter from United Overseas Bank (UOB) demanding payment of $74.6 million in relation to debts owed.
On Oct 16, mm2 Asia and its associated companies, received letters of demand from Standard Chartered Bank in relation to $905,582.87 in debts owed.
On Sept 15, the group received another letter of demand from Super Bean International relating to payment of $97,500 under an investment agreement dated Nov 30, 2023, between mm2 Entertainment, the group’s subsidiary, and Super Bean.
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Shares in MM2 Asia closed 0.1 cent lower or 25% down at 0.3 cents on Nov 10.
