SINGAPORE (Apr 2): Midas Holdings is in a really bad situation. Over the last few weeks, the company has found itself on the hook for RMB452.2 million ($94.1 million) in previously unknown debts and loan guarantees, some for loans taken by a nephew of the company’s chairman, Chen Wei Ping. The company’s CEO Patrick Chew is said to be one of the guarantors of these undisclosed debts. But he says he knows nothing about it, and has resigned.

The first sign of trouble came on Feb 8, when Midas announced the discovery of previously unknown legal actions against some of its key operating subsidiaries and associates in China. As a result of the lawsuits, shares in these entities held by Midas have been frozen on court orders. Trading in the company’s shares was halted and then suspended the following day.

On March 22, Midas said a number of creditors — including private individuals and a finance company owned by local Chinese governments — had taken its subsidiaries to various courts in China to reclaim a total of RMB423.5 million. On March 27, Midas announced the discovery of a further claim of RMB28.7 million by another creditor, bringing the total of these newly discovered debts to RMB452.2 million.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook