SINGAPORE: Former Malaysian finance minister Daim Zainuddin’s son has been declared a bankrupt over about SD1.65 million in debt that he owed to Maybank Kim Eng Securities.
Following this, according to a report in the Straits Times, Md Wira Dani Abdul Daim has stepped down as non-independent and non-executive director of LionGold Corp.
The decision to step down was made known in a statement filed with the Singapore Stock Exchange. The statement indicated that Wira Dani intended to resolve the matter within 30 days.
Wira Dani, 37, had also ceased to be ISR Capital executive chairman since Monday, said the ST report. Public-listed ISR is an investment and investment advisory firm focused on the natural resources space, according to its website.
Maybank secured a High Court judgment against Wira Dani in March to reclaim a debt of SD2.459 million that he owed. This is said to have been borrowed by him to buy LionGold shares on a leveraged account, according to the ST report.
Shares in LionGold as well as Blumont Group and Asiasons Capital plunged in October 2013, slashing some SD6.9 billion of their market value in three days, according to media reports.
This led to an official investigation into suspected irregularities, and lawsuits were filed by various parties, although the three companies said they were unaware of the reasons for the plunge, said the ST report.
LionGold, dealing in gold mining resources, had a SD26.9 million market value as of June last year, compared with SD1.59 billion at its peak in August 2013.
Wira Dani, according to the report, had agreed to pay the bank via instalments but, by August 2014, had repaid only SD100,000.
Maybank in April accepted the offer from Wira’s lawyer Woo Tchi Chu to settle the debt, with SD1 million to be paid in two tranches within the month and the rest by end-June.
Maybank’s Allen & Gledhill lawyer Vincent Leow had made clear that bankruptcy was an option in the event of a default by Wira Dani. In the event, according to the ST report, Maybank received only about SD835,950, leaving a shortfall of SD1,650,642.
This triggered the bankruptcy move. Maybank, said the ST report, refused to comment when contacted, citing client confidentiality.