Midas Holdings, directors receive writ of summons in defamation suit

EMBATTLED railway parts maker Midas Holdings and its directors have received a writ of summons from the State Courts over alleged defamation, the board disclosed on Tuesday.

The writ of summons, which was dated the previous day, pertains to a suit brought by former executive chairman Chen Wei Ping.

Mr Chen has alleged that 16 announcements filed by Midas between March 22 and July 4 "contained defamatory words", the company's board said. Midas previously announced in May that it had received a letter from Mr Chen through law firm Drew & Napier.

"The company is seeking legal advice on this matter," the board added. "The board will issue further announcements as appropriate, as and when there are any material developments in the matter."

Trading in Midas shares has been suspended since February in both Singapore and Hong Kong amid difficulties in publishing audit results and preparing an annual report. The board has previously flagged issues such as undisclosed litigation, round-tripping and unrecorded loans.