Malaysian ex-minister's son gets bankruptcy annulled

Mr Md Wira Dani, son of Malaysia's former finance minister Daim Zainuddin, has apparently settled a $1.65m debt.
Mr Md Wira Dani, son of Malaysia's former finance minister Daim Zainuddin, has apparently settled a $1.65m debt.

A bankruptcy order against businessman Md Wira Dani Abdul Daim, son of Malaysia's former finance minister Daim Zainuddin, has been annulled, suggesting that a $1.65 million debt he owed a broking firm here has been settled.

His updated status was gazetted last month, the sole entry for an annulment, alongside 34 other names that were discharged from bankruptcy in the same notice.

The annulment was issued by the Official Assignee.

Compared with bankruptcy discharges, annulments are rare. The Ministry of Law's Insolvency Office website states that "an annulment cancels the Bankruptcy Order that was made against the debtor.

"This means that it is as if the Bankruptcy Order was never made against the debtor. A discharge does not have the same effect."

Mr Wira, 37, was made bankrupt in August last year over some $1.65 million he owed Maybank Kim Eng Securities. After his bankruptcy, he stepped down as non-independent and non-executive director of LionGold Corp, indicating he wanted to settle personal affairs.

Maybank Kim Eng had earlier secured a High Court judgment against him in March last year to reclaim a debt of $2.459 million.

Mr Wira is said to have borrowed the money to buy LionGold shares on a leveraged account. He had agreed to repay the debt via instalments, but by August 2014, had repaid back only $100,000.

In April last year, Maybank Kim Eng accepted an offer from Mr Wira's lawyer, Mr Woo Tchi Chu, to settle the debt - with $1 million to be paid in two tranches within the month, and the remaining amount by end-June.

Meanwhile, Maybank Kim Eng's Allen & Gledhill lawyer, Mr Vincent Leow, made it clear that bankruptcy was an option, in the event of a default by Mr Wira.

Maybank Kim Eng received about $835,950 of the debt, and the $1,650,642 shortfall triggered Mr Wira's bankruptcy last August.

Mr Woo yesterday declined to comment on the matter.

A version of this article appeared in the print edition of The Straits Times on February 09, 2017, with the headline 'Malaysian ex-minister's son gets bankruptcy annulled'. Print Edition | Subscribe