Midas Holdings

Singapore authorities to continue investigation of key Midas personnel amid winding-up woes

SINGAPORE (April 2): Singapore’s authorities say they will continue their investigation into Midas Holdings’ former directors and officers in the event that the insolvent company winds up.

This comes amid a year-long investigation into Midas Holdings as the company’s former directors and officers by the Commercial Affairs Department (CAD) and Monetary Authority of Singapore (MAS).

Singapore’s regulatory unit SGX RegCo is also reviewing potential listing rule breaches by former directors and executive officers of Midas.

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.

Real representation of investors required

SINGAPORE (Dec 3): In 2015, the Securities Investors Association (Singapore) helped commodities trader Noble Group organise two shareholder meetings: one was a pre-annual general meeting session; the other was for the purposes of “shareholder communication”, according to SIAS. “Noble didn’t have problems at that time,” says SIAS founder, president and CEO David Gerald. Noble paid for the event, including venue, marketing and administration costs.

Exceptionalism has no comparison

SINGAPORE (Nov 23): For decades, Singapore has thrived on the idea that it is, in a word, exceptional. “We are a small country in this part of the world and to survive, you have to be exceptional,” Prime Minister Lee Hsien Loong said at a May Day Rally in 2015. The city state does not have the natural resources that its neighbours are endowed with. But, through hard work and perseverance, it has transformed itself into the successful trade and financial services centre it is today.

Midas claims possible forgery, insubstantial evidence presented at first hearing in Jilin

SINGAPORE (July 5): New evidence of alleged fraud has been presented against Midas Holdings by Jilin Provincial Micro Refinancing Corp in the first hearing which took place on June 26 in the Jilin High People’s Court.  

In its filing on Wednesday evening, the indebted train parts manufacturer flagged a number of suspicions raised by on loan guarantees for three loans made by its subsidiary, Jilin Midas, for up to RMB 400 million ($82.3 million) from Jilin Provincial Micro Refinancing.

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 finds more evidence of round-tripping and unauthorised bank accounts by China subsidiaries

SINGAPORE (June 14): The board of Midas Holdings has found what could be evidence of more corporate malfeasance among its China-based subsidiaries.

See: SGX RegCo says taking 'every step possible within its powers' to assist in Midas investigations

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.

Midas' lawyers accuse former CEO Chew of 'dereliction of duties'; to claim damages for breaches

SINGAPORE (May 23): Scandal-plagued Midas Holdings on Wednesday published a letter from its lawyer, Legal Options LLC, claiming that former CEO Patrick Chew had breached his contractual, statutory, and fiduciary duties to the company.

“There is clearly a dereliction of duties by your client (Chew) as the Chief Executive Officer and director of the company,” the law firm wrote in a letter dated Tuesday to Chew’s lawyers, Allen & Gledhill LLP.

Midas' former CEO Chew demands repayment of $3.3 million from company

SINGAPORE (May 11): Patrick Chew, the former CEO of scandal-plagued Midas Holdings, has sent the company a lawyer’s letter demanding the repayment of nearly $3.3 million.

The sum consists of a $2.9 million loan to the company, with the remaining made up of expenses not reimbursed and salary not paid.

Chew, who left the company with immediate effect on March 22, is also trying to claim salary of $207,000 in lieu of a six months’ notice period under his employment contract with the company.

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