Hildrics Asia Growth Fund VCC, a Singapore-based private equity fund, has signed a term sheet to support mm2 Asia, the former operator of the shuttered Cathay Cineplexes cinema chain, according to a company announcement.
The deal with Cathay Cineplexes, which shut down last year, includes a S$15 million ($11.7 million) share placement and a rights issue of up to S$10 million ($7.81), which Hildrics will fully underwrite.
Proceeds are earmarked for restructuring the company and shoring up working capital, mm2 Asia said.
Hildrics Capital, which manages Hildrics Asia Growth Fund, is led by Choo Kee Siong, a former managing director at UOB. Wee Teng Chuen, son of UOB’s CEO Wee Ee Cheong, serves as executive director and COO.
The announcement follows a four-month creditor moratorium granted by the Singapore High Court in December, giving mm2 Asia four months to work out a restructuring plan, during which time it would be shielded from creditors and legal proceedings.
The term sheet is non-binding and subject to execution of definitive agreements and the completion of customary conditions, including regulatory approvals.
mm2 and its subsidiaries had received repayment demands from creditors, including UOB, Frasers Centrepoint Trust and Standard Chartered.
