Midas gets demand from investors to redeem US$30m worth of notes

Midas has named Mr Chan Soo Sen its new non-executive chairman.
Midas has named Mr Chan Soo Sen its new non-executive chairman.

Midas Holdings has received requests from note holders who want to redeem a total of US$30 million (S$39.4 million) as well as unpaid coupons.

The company has to pay the note holders - CRRC Hongkong Capital Management and CRRC (Hong Kong) - within seven days of their requests, which came in on April 3 and April 4. They each hold US$15 million of the notes.

The railway-parts maker said in an exchange filing yesterday that it will contact the note holders to seek an extension if possible.

The payment matter comes after the Singapore Exchange (SGX) issued Midas with a notice of compliance on Monday, demanding the immediate resignation of two of its top executives.

The bourse regulator said Midas executive chairman Chen Wei Ping cannot be appointed as a director or executive officer in any listed company for the next three years. It also stated that Mr Ma Ming Zhang, the legal representative of Midas unit Luoyang Midas, cannot be appointed an executive officer in any listed company for the next three years.

Last week, Midas' audit committee lodged a police report with the Commercial Affairs Department over a possible breach of securities laws and offences linked to irregularities in the group's operations in China.

The firm said in an exchange filing yesterday that it has uncovered possible suspicious transactions, following internal investigations. It added that it is assisting with inquiries.

Midas has appointed Mr Chan Soo Sen as its new non-executive chairman and re-designated independent non-executive directors Tong Din Eu and Xu Wei Dong as executive directors. The changes took effect on Tuesday.

Mr Chan, a former minister of state, has been Midas' independent non-executive director since June 29, 2006. He has also served in a number of government ministries, including in Education, Trade and Industry, and Community Development, Youth and Sports.

Trading in Midas stock has been suspended since early February.

A version of this article appeared in the print edition of The Straits Times on April 06, 2018, with the headline 'Midas gets demand from investors to redeem US$30m worth of notes'. Print Edition | Subscribe