Cash-strapped media entertainment and content company mm2 Asia says its subsidiary mm2 Entertainment has received a letter of demand for $6.3 million from solicitors representing an individual named Yi Xianhuang.
According to a Dec 31 bourse filing, mm2 Entertainment received the letter on Dec 28. Yi is demanding repayment for money owed under various investment agreements in relation to movie productions, as well as a refundable deposit for a television series. mm2 Entertainment is to make full repayment by Jan 9, failing which Yi may commence proceedings against the company without further reference.
In a bourse filing on Dec 29, mm2 Asia says another subsidiary mmLive received a statutory demand from Yi for $18.9 million. Yi demanded the outstanding sum to be paid within three weeks from the date of service of the statutory demand.
mm2 Asia has received multiple letters of demand for payment over the past few months. Standard Chartered Bank issued letters of demand seeking repayment of $905,582.87 from mm2 Asia and its associated companies on Oct 16. Later, on Nov 7, United Overseas Bank demanded payment of $74.6 million from mm2 Asia and its subsidiaries for debts owed.
mm2 Asia suspending trading of its shares on Nov 11 after its board assessed that the company could not prove that it is able to continue as a going concern. mm2 Asia shares last traded at 0.3 cents on Nov 10.
