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Midas defaults on interest payment on medium term notes; hires lawyer in dispute with former CEO

MIDAS Holdings announced on Wednesday evening that it is unable to pay the US$1.05 million in interest for each of its Series 003 and Series 004 multicurrency medium term note due May 23, 2018.

Its board earlier in May warned that the company cannot operate as a going concern, while the firm's auditors said separately that its auditor reports for Midas from 2012 to 2016 can no longer be relied upon.

The maker of aluminium alloy extrusion products had received two letters of demand on March 9 and April 16, respectively, for 87.3 million yuan (S$18.29 million) and US$6.9 million.

In a separate statement after the market had closed, Midas announced it has appointed lawyers Legal Options LLC - as well as released as a lawyer's letter of their own - as representatives in a dispute between the company and former chief executive Patrick Chew Hwa Kwang.

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