SINGAPORE - Midas Holdings on Thursday (March 29) said that despite instructions given to its subsidiaries, Jilin Midas Aluminium Industries and Jilin Midas Light Alloy (JMLA), to remit funds to its Singapore office for the redemption of its US$30 million 7 per cent notes due 2017 (now extended to 2018), the company has not received any funds yet.
Last December, noteholders had agreed for Midas to redeem the notes in full on March 22, 2018.
To validate the cash balances at the banks, independent non-executive director Xu Wei Dong will have to be appointed as the legal representative of Jilin Midas and Jilin Midas Investments (JMI).
The unaudited cash balances at the primary accounts as at Dec 31, 2017 at Jilin Midas and JMI are 465.3 million yuan (S$96.8 million) and 42.1 million yuan respectively.
Mr Xu can only go to the banks to check on the cash balances after he is appointed officially as the legal representative.
Midas said: "Although (Mr Xu) is already the legal representative of JMLA, cooperation from the local staff was not forthcoming."
The unaudited cash balances at the primary accounts as at end-December 2017 for JMLA is 334.4 million yuan, said the company.
The audit committee, comprising three independent non-executive directors, has urged executive chairman Chen Wei Ping to persuade the the local staff to cooperate.
When they do, and when Mr Xu has secured the appointment of legal representative for Jilin Midas and JMI, the independent non-executive directors will visit the banks in China to conduct a cash validation.
The current legal representatives of JMI and Jilin Midas are executive chairman Mr Chen and Ma Ming Zhang respectively.