Is it game over for Midas Holdings?

THE script is all too familiar. A company makes grandiose promises to expand its business. Large sums are spent on new facilities. Unfortunately, the investments don't seem to lead to better cash flows or profitability. Debt grows.

One fine day, shares are suddenly halted, then suspended. Irregularities have been found. Analysts cease coverage.

Is it game over now for investors in Midas Holdings?

In the worst case scenario of lenders pulling the plug, minority shareholders might not have much. Equity stakes in Midas' subsidiaries and associates are either pledged away or embroiled in lawsuits.

Even if the company remains a going concern, there is uncertainty over the damage caused by potential fraudulent transactions. We now know that there are other corporatio…