SINGAPORE (Apr 6): Midas Holdings has promised to hold a dialogue with minority shareholders by end April, even as the board tries to ascertain the cash balance and other legal entanglements of its subsidiaries in China.

In a filing to SGX on Friday, executive director Xu Wei Dong notes that key information on the lawsuits brought about by creditors and the financial health of the company “are still being retained by the staff” in China.

“Though time consuming and costly, the current board of directors of the company notes that information relating to the cash validations and the litigations may be obtained from the relevant banks and courts,” Xu states.

According to the company’s most recent financial statement, as of Sept 30, 2017, there’s cash of some RMB 944 million ($197 million), and a reported net asset value of RMB 4 billion.

Thus far, Midas is aware of RMB 452.2 million in claims on its China subsidiaries from creditors’ lawsuits in China.

Xu adds that the company’s board of director plans to go China to “seek co-operation and to obtain assurance that the important documents required for the reconstruction of the complete accounts were retained.”

Midas’ former executive chairman, Chen Wei Ping, is alleged to have taken out the unauthorised loans. The board on Apr 1 wrote to Chen to ask for his side of the story. He was given three days to respond, but did not do so.

On Apr 3, SGX banned Chen from serving as a director of any SGX-listed company for the next three years.

See: SGX strips Midas chairman Chen and legal representative Ma of their appointments

Meanwhile, SGX had also slapped a similar ban on Ma Ming Zhang, who replaced Midas former CEO Patrick Chew as legal representative for a key operating subsidiary back in April 2017.

One month later, this subsidiary, Jilin Midas, took out the unauthorised loans with a local state-owned micro-financing company.

In its announcement on Friday, the board says Ma has completed the documents to relinquish his appointments as legal representative of Jilin Midas and another Midas subsidiary, Shanxi Wanshida Engineering Plastics Co.

Xu, the executive director, is in the process of assuming these two appointments from Ma.

See: Midas' remaining non-executive directors assume executive roles in troubled firm