SINGAPORE (Mar 27): The audit committee at Midas Holdings has uncovered yet another lawsuit in China against subsidiary Dalian Huicheng Aluminium (DLHC).

According to the committee, DLHC had acted as an unauthorised guarantor for all debts owed by Chongqing Huicheng Aluminium (CGHC) for two years.

CQHC is not related to Midas, but is owned by an individual called Chen Chen, who is the nephew of Midas’ executive chairman Chen Wei Ping.

A raw material supplier based in Chongqing on Monday had filed a civil complaint against borrower CGHC and DLHC to recover a sum of RMB 28.7 million ($6 million).

On March 22, Midas' audit committee disclosed that creditor, Sumec International Technology Co., is trying to recover RMB 4 million loan in which subsidiary Luoyang Midas acted as an unathorised guarantor.

See: Midas CEO Patrick Chew quits; stamp was used without his approval to take out loans

Midas also disclosed that its other subsidiaries and associates owe creditors RMB 379 million.

CEO Patrick Chew resigned on the same day, citing his health and the court cases as reasons.

Chew told the committee his stamp was used without his approval to authorise a string of loans.

Shares of Midas have been suspended since Feb 8. It last traded at 19.2 cents.