Midas Holdings said on Tuesday that it viewed Jindou Investment Holding Group’s agreement with the judicial manager, Jilin Province Qiming Bankruptcy Liquidation, to acquire the assets of Jilin Midas Aluminium Industries for 1.76 billion yuan as invalid.
That was after receiving a strategic investor introduction report from Jilin Midas dated 5 January, the railway parts maker said in a filing to SGX after the market close on Tuesday.
“The board of Midas Holdings had not approved anyone to enter any such agreement on behalf of Jilin Midas. Ever since Jilin Midas was administered by the judicial manager, the judicial manager has not provided the company with the audit report, creditors report nor document who was responsible for the debacle at Jilin Midas,” Midas said.
“Likewise, the company was not appraised as to how the sale price of 1.760 billion yuan for the assets is arrived at,” it added.
SGX has previously pointed to issues at the China subsidiaries, including undisclosed enforcement orders, undisclosed lawsuits and unauthorized loans.
Midas said it viewed the agreement as invalid in part because the judicial manager has continued to deal with Ma Ming Zhang as Jilin Midas’ legal representative, even though Midas had announced it removed Ma and appointed Xu Wei Dong in April 2018.
It added that SGX has ruled Ma can not hold executive positions in the company, as of April 2018. SGX said at the time that Ma can not hold executive positions in any company listed on the bourse for three years.
Midas said that Xu will appeal to the Liaoyuan government to set aside the proposed asset sale.
The company will also hold a second creditors’ meeting on 22 January to discuss verifying creditors’ claims and to discuss and vote on the proposed sale of assets to Jindou Group.