Chen Wei Ping

Facing insolvency with no rescuer in sight, Midas says likely to be liquidated

SINGAPORE (Apr 1): Midas Holdings, which entered into judicial management and is the target of a police probe after the discovery of financial irregularities in early 2018, warned shareholders the group will likely be liquidated when ordered to by the court.

This is because Midas is facing insolvency given its assets is not enough to cover its reported liabilities and prospect of rescue appears dim. The group also does not have funds to contest legal action by its creditors.

Irregularities uncovered in Midas' Dalian subsidiary implicate former top executives

SINGAPORE (June 20): Midas Holdings said it has uncovered up to nine cases of irregularities involving nearly RMB 1 billion ($210 million) its Dalian subsidiary in China.

The irregularities involved undisclosed loans, guarantee agreements and fund transfers to secret accounts and companies implicating its former top executives.

And the troubled train parts manufacturer warned that the financial impact of the irregularities uncovered may widen as the directors await additional bank statements, loan statements and loan documents.

Midas' former executive chairman Chen refutes board allegations he refused to answer questions

SINGAPORE (May 26): Lawyers of Chen Wei Ping, Midas’ former executive chairman, have written to its board refuting allegations he had refused to answer questions related to unauthorised loans and corporate guarantees and undisclosed lawsuits involving the company.

In an April 6 announcement, Midas’ nominating committee said Chen was “not suitable to continue as an executive director of the group” since it had not receive any written response from Chen by that time.

How Midas ended up being a train wreck

SINGAPORE (May 4): Tong Din Eu, executive director of Midas Holdings, told anxious shareholders this past week that the company’s former executive chairman Chen Wei Ping had promised, during a Feb 1 conference call, to make arrangements with the Liaoyuan government to settle previously undisclosed litigation that auditors had uncovered.

See: Midas likely to go bust if creditors push for liquidation; board aims to salvage parent company

Midas says former exec chairman Chen Wei Ping under probe in China for fraud

SINGAPORE (Apr 17): Midas Holdings announced Tuesday that former executive chairman Chen Wei Ping is under investigation in China for his suspected involvement in fraud relating to loans.

Midas says police from the Changchun City Economic Crime Investigation Unit in China’s Jilin Province had visited the provincial branches of two banks – China Development Bank and The Export-Import Bank of China.

The banks had notified Midas’ subsidiary, Jilin Midas Light Alloy Co. (JMLA), regarding the investigations on Mar 30.

CAD launches investigations into Midas

Midas audit committee lodges report with CAD over China ops; SGX RegCo looking into matter

SINGAPORE (Mar 29): Midas Holdings has lodged a police report with the Commercial Affairs Department of the Singapore Police Force.

This is in relation to a possible breach of securities laws and other offences arising from the irregularities in the group’s operations in China.

"The full extent of the possible breach of securities laws or other offences, or other potential breaches (if any) has yet to be determined," says the audit committee in a 6.38pm filing.

Midas says Jilin subsidiaries shrugged off instructions to remit funds

SINGAPORE (Mar 29): More trouble is brewing at Midas Holdings, the manufacturer of aluminium parts.

Two of Midas' subsidiaries in China --  Jilin Midas Aluminium Industries (Jilin Midas) and Jilin Midas Light Alloy (JMLA) -- have yet to remit funds to its Singapore office despite being instructed to do so by the head office.

The funds were from the redemption of of Midas' US$30 million Series 003 Notes with 7% coupon due 2017 which has now been extended to 2018.

Midas uncovers another lawsuit against Dalian subsidiary as unauthorised guarantor

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.

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

SINGAPORE (Mar 22): The corporate governance mess at Midas Holdings has claimed its first casualty, right at the very top rung of management.

See: Midas CEO says shares and money in China subsidiaries and associates frozen by courts

In a filing to the Singapore Exchange on Thursday night, Midas said CEO Patrick Chew Hwa Kwang has resigned with immediate effect due to "his health and litigation matters".

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