Mary Chia Holdings, a Catalist-listed beauty and wellness group, has paid over S$300,000 to Fullink Capital in a disputed debt case, though insolvency proceedings initiated by the lender remain active. In filings with the Singapore exchange on July 21, Mary Chia confirmed that it had settled S$343,829 of undisputed amounts owed to Fullink, along with S$14,000 in court-ordered legal costs. These payments followed a July 17 hearing during which the High Court noted that Mary Chia had previously acknowledged the debt but had yet to discharge it.
The dispute stems from a statutory demand issued by Fullink on March 17, seeking S$902,640 from Mary Chia. The amount includes default interest, late payment fees, and charges related to loan restructuring and stand-still arrangements. Mary Chia has contested these additional claims, arguing that parts of the demand are unenforceable. The group and its wholly owned subsidiary, Organica International Holdings, initiated legal action against Fullink on April 15 to challenge the contested amounts.
Fullink originally lent Organica International S$350,000, with Mary Chia acting as guarantor. In response to the unpaid debt, Fullink has sought to have Mary Chia declared insolvent. At the July 17 hearing, Mary Chia requested a stay on the insolvency proceedings until the court ruled on the disputed fees and charges, but Fullink argued for a stay on Mary Chia’s legal challenge instead, allowing the insolvency case to proceed first. The court sided with Fullink, pausing Mary Chia’s application pending the insolvency case’s outcome.
Mary Chia underscored in its filings that no ruling has yet been made on the enforceability of the disputed fees or on any winding-up order. The company emphasized that its payment covered only amounts it acknowledges owing, while it continues to dispute the remaining S$558,811 claimed by Fullink.
The ongoing proceedings have strained Mary Chia’s operations, notably delaying its annual financial reporting. The company has applied for extensions from the Accounting and Corporate Regulatory Authority to hold its annual general meeting and file its annual returns for the fiscal year ended March 31. Management resources have been heavily engaged in addressing the legal matters amid turnover in the finance team, which has impeded reconciliation and retrieval of historical financial data. Mary Chia now expects to complete its audit and finalize its annual report by August 13. The company aims to hold its annual general meeting on August 28 and file its returns by October 30, beyond the original deadlines of July 31 and August 31, respectively.
A pre-trial conference to determine the next steps in the insolvency proceedings is scheduled for July 23. Mary Chia said it remains focused on working with its legal advisers to protect the interests of the company and its stakeholders. Shares of Mary Chia closed at 1.8 Singapore cents on July 22.