Midas Holdings under probe by China, Hong Kong authorities: SGX RegCo

SINGAPORE - The Singapore Exchange said on Friday (May 25) that its regulation unit, SGX RegCo, has been in engagement with the Chinese Embassy in Singapore in relation to communications with the relevant authorities in China on developments at Midas Holdings.

"Relevant authorities in China, Hong Kong and Singapore are already investigating the case and SGX RegCo understands this process will require due deliberation and time. We are taking every step possible within our powers, and will extend full cooperation to the relevant investigating authorities," said SGX RegCo.

The scandal-hit railway-parts maker Midas Holdings is already under probe by Singapore authorities, including the Commercial Affairs Department (CAD) which has ordered the company to hand over financial documents.

On Wednesday, Midas announced it had defaulted on U$1.05 million in interest payment on medium term notes, and has hired a lawyer in a dispute with its former chief executive Patrick Chew Hwa Kwang.

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 could no longer be relied upon.

Trading in Midas shares has been suspended since Feb 9 after several litigations, enforcement orders and court documents were uncovered. Its last traded price was 19 cents.

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