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Midas Holdings says judicial manager for a Chinese unit acted beyond authority

BELEAGUERED railway-parts maker Midas Holdings said a judicial manager from Jilin Province Qiming Bankruptcy Liquidation Co Ltd has been appointed for one of its wholly-owned subsidiaries, Jilin Midas Aluminium Industries, but has acted beyond his authority.

The judicial manager, Qi Ming, has taken control of Jilin Midas Investments Co Ltd (JMI), even though the Board of Midas group has yet to receive any court order to place JMI under judicial management.

It seems that the manager "has acted beyond his authority by retaining the documents and stamps relating to JMI", Midas said.

Without the necessary documents and stamps of JMI, the change of legal representative from former chairman Chen Wei Ping to current executive director Xu Wei Dong has stalled, it added. "The company is seeking legal advice on this matter."

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In a separate filing on Friday, Midas said its former chairman Chen Wei Ping is disputing that former chief executive Patrick Chew Hwa Kwang had provided an interest-free loan of S$2.9 million to the group.

The loan was said to have been provided by Mr Chew on Nov 21, 2017 primarily to pay the coupon on notes due on Nov 22, 2017. But Mr Chen said in a letter to Midas' board last month to clarify that S$2.7 million came from himself while only S$200,000 belonged to Mr Chew and requested that Midas do not repay any part of such loan to Mr Chew without his consent.

Midas is currently being investigated by the Singapore authorities.

Last month, the group revealed that the Commercial Affairs Department (CAD) has ordered the company to hand over financial documents, and a detailed list of all persons who acted as the legal representative, general manager or financial controller of the relevant subsidiaries as well as specimen signatures of these individuals.

The CAD is also seeking all relevant IT equipment and corporate e-mails of these persons.

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