The son of Malaysia’s former finance minister Daim Zainuddin was made a bankrupt last week over some $1.65 million in debts that he owed to Maybank Kim Eng Securities.
Mr Md Wira Dani Abdul Daim has stepped down as non-independent and non-executive director of LionGold Corp, said a statement filed with the Singapore Exchange, indicating that he intends to settle personal affairs following the court bankruptcy order, which he intends to resolve within the next 30 days.
Mr Wira, 37, has also ceased to be ISR Capital executive chairman since Monday. 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 Mr Wira in March to reclaim a debt of $2.459 million that he owed. This is said to have been borrowed by him to buy LionGold shares on a leveraged account.
Shares in LionGold as well as Blumont Group and Asiasons Capital plunged in October 2013, slashing some $6.9 billion of their market value in three days, according to media reports.
It led to an official probe on suspected irregularities, and lawsuits were filed by various parties, though the three companies said they were unaware of the reasons for the plunge.
LionGold, dealing in gold mining resources, had a $26.9 million market value as of June last year, compared with $1.59 billion at its peak in August 2013.
Mr Wira had agreed to pay the bank via instalments but, by August 2014, had repaid only $100,000.
Maybank in April accepted the offer from Mr Wira’s lawyer Woo Tchi Chu to settle the debt, with $1 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 Mr Wira.
In the event, Maybank received only about $835,950, leaving a shortfall of $1,650,642 and triggering the bankruptcy move.
Mr Wira is said to have property in Singapore, according to court documents filed.
Maybank refused to comment when contacted last night, citing client confidentiality.
This article was first published on Aug 18, 2016.
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