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Bankruptcy of Midas Group
Submitted by: World Stock Exchange OLD (RMV)Date: November 03, 2007
Midas Commons, CEO of Midas Bank yesterday informed the World Stock Exchange that the Midas Group of Companies are bankrupt.
The WSE accounts controlled by Midas Commons were locked while we reviewed the situation.
The cause of this bankruptcy is not our concern as the WSE is not responsible for the decisions and actions of Midas Group and its management. Midas Group and its management team are responsible for all the financial and operational decisions.
The WSE believes that the Midas Group of Companies were Over-Leveraged and did not hold sufficient cash reserves to allow for the potential risks and impact of increased customer withdrawals, lower than expected earnings from investments along with regulatory and economic challenges.
The World Stock Exchange has now delisted the following Midas Group of companies to ensure that shareholders will have the best possible chance to earn a return on their investments through capital growth and dividends using the WSE Traders Fund:
Midas Group High Yield Bonds (MGB)
Midas Group Financials (MGF)
Midas Development Company (MDC)
Conversion rates:
OLD ---- NEW WTF SHARES
MGF 1 - 1
MDC 1 - 1
MGB 1 - 100
All shares in the above companies have been transferred to the WSE Traders Fund (WTF) which has a higher Net Asset Value per Share than the above companies had due to the removal of shares previously owned by Midas Commons.
The World Stock Exchange has requested that Midas Group provide the WSE with the most recent list of Midas Banking customer avatar names and balances so that the WSE can issue former Midas Bank customers with 1 share in WTF for every L$1 linden held in Midas Bank.
This will ensure that Midas Bank customers will have the best opportunity to minimise the loss and impact resulting from the bankruptcy of Midas Bank.
The WSE will post an announcement when it receives a response to its request for the former customer list of Midas Bank.