Troubles facing Mary Chia Holdings have deepened after a creditor formally launched court proceedings against the company and several related parties over claims tied to unpaid loans and settlement obligations.
The Catalist-listed beauty and wellness group said on May 5 that creditor Fullink Capital had commenced insolvency-related proceedings against Mary Chia, its wholly owned subsidiary Organica International Holdings, chief executive Ho Yow Ping and chief financial officer Su Jun Ming.
According to the company, Fullink Capital informed Mary Chia of the proceedings on April 30 before formally serving court documents to its legal representatives on May 4.
The dispute centres on claims amounting to $902,640, which Fullink Capital says is owed by Organica International under previous loan and repayment arrangements.
The latest development comes as Mary Chia continues to deal with unresolved audit issues that emerged after a significant number of finance staff left the company. Their departures, the company said earlier, resulted in the loss of institutional knowledge tied to years of historical financial records and accounting matters.
In Singapore Exchange filings dated April 12, Mary Chia disclosed that Fullink Capital had initially extended a loan of $350,000 to Organica International. The loan was guaranteed by Mary Chia.
The company said disagreements later arose over repayment obligations linked to the financing arrangement. Fullink Capital subsequently asserted that the entire outstanding amount had become immediately payable, including late payment interest and additional charges stipulated under the loan and settlement agreements.
That claim eventually grew to $902,640, according to the filings.
The proceedings add another layer of pressure for the group at a time when it is already contending with financial and administrative challenges linked to its audit matters and staffing turnover within its finance department.
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Mary Chia did not indicate in the disclosure how the proceedings may ultimately affect the company or its subsidiary. The matter now appears set to move through the court process as the dispute over the claimed debt continues.
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