Insolvency proceedings against Mary Chia Holdings and three associated parties have been dismissed, though legal disputes over outstanding loan amounts remain unresolved.
The beauty and wellness group, listed on the Catalyst platform, announced on October 14 that the court confirmed the dismissal of proceedings initiated by Fullink Capital, following the fulfillment of court directives issued on September 30. Under these instructions, Mary Chia transferred approximately S$651,499 to the court’s account on October 6. This sum had previously been held by the company’s legal representatives as security. Additionally, Mary Chia paid S$13,900 in court-ordered costs to Fullink’s solicitors on October 9, with receipt acknowledged on October 12.
The insolvency proceedings involved Mary Chia Holdings, its subsidiary Organica International Holdings, as well as the firm’s chief executive officer Ho Yow Ping and chief financial officer Su Jun Ming. Despite the dismissal, the amount deposited with the court remains held pending a separate High Court case addressing claims made by Fullink. Mary Chia emphasized that placing the funds with the court does not imply an admission of liability regarding the disputed sums.
Earlier, the company had paid S$343,829 on July 21, representing the amount it acknowledged owing. However, Mary Chia continues to contest other charges set forth by Fullink, particularly those related to default interest, late payment penalties, and restructuring fees associated with two loans totaling a principal amount of S$350,000. These matters are still under judicial consideration.
The dispute dates back to March, when Fullink issued a statutory demand for approximately S$902,640, covering loans extended to Organica, a wholly owned subsidiary of Mary Chia. Mary Chia had provided corporate guarantees for these loans, while Ho and Su acted as personal guarantors. Fullink subsequently initiated winding-up proceedings against both Mary Chia and Organica, alongside bankruptcy proceedings targeting the two executives. At the September 30 hearing, the High Court ordered that insolvency actions be dismissed upon payment of the secured sum into court.
Separately, Mary Chia disclosed entering into share subscription agreements on October 6 to raise gross proceeds of S$1 million. The anticipated funds are intended to bolster the group’s financial position, with net proceeds allocated for working capital and business expansion efforts in China and Thailand. This fundraising effort remains subject to shareholder approval at an extraordinary general meeting, as well as regulatory and other customary conditions.
Recent disclosures also reveal that five Mary Chia subsidiaries face ongoing court cases related to unpaid Central Provident Fund (CPF) contributions. In a filing made on October 9 in response to regulatory inquiries, the group acknowledged combined CPF arrears of S$103,727 based on the CPF Board’s revised calculations. Mary Chia admitted to earlier failing to disclose these arrears and related court actions involving four subsidiaries, attributing the lapses to deficiencies in its internal reporting and disclosure processes.
The company reported collaboration with the CPF Board to establish a monthly repayment plan for the outstanding contributions and confirmed that the first installment had been paid in full. The involved subsidiaries will continue adhering to the agreed payment schedule. The five cases related to CPF arrears have been adjourned to November 12 for further proceedings.