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Published on September 14, 2007

The SET last week ordered Mida Assets to clarify a Bt269.4-million loan granted by an unnamed subsidiary to that firm's directors and another Bt25.5-million loan extended by 60-per-cent-owned subsidiary Mida Leasing to another subsidiary, IMCC.

The SET said recently that upon examination of the firm's financial statements, it had found certain transactions that should be identified as connected.

In Mida Assets' reply to the SET, it said the Bt269.4-million transaction consisted of two loans, one for Bt256.2 million and the other for Bt11.95 million. The first loan was made by Samui Peninsula Co Ltd in the amount of Bt256.2 million, plus accrued interest of Bt0.14 million, to Suthasinee Setaphan on June 28.

Mida Assets holds 50 per cent of Samui's shares and Suthasinee holds the remaining 50 per cent. She is a director, president and executive director of Samui. The loan carries an interest rate of 10 per cent. Suthasinee was required to pay principal and interest on a monthly basis until June 2009.

This loan was secured by a pledge of 1.28 million Samui shares from Suthasinee, equal to 22.1 per cent of the company's shares.

Mida Assets said Samui had incurred liabilities for the construction of a hotel before Mida invested in Samui, so these liabilities fell within Suthasinee's responsibility.

The reason that Samui did not record this debt was that in the past it had no standard accounting system. And if Samui did not pay this debt, the supplier would have to take it to court, which would result in damage to Samui, Mida Assets said.

So the board of directors of Samui, including Suthasinee and Kamol Leosivikul, approved the loan to Suthasinee for payment of the debt.

"And this transaction was done before the board of directors of Mida approved it, because Mida did not comprehend that the transaction had to be approved by Mida's board of directors and was necessary and Samui emerged to pay the construction debt. The board of directors of Mida approved the transaction on August 14," Mida Assets said.

The second loan of Bt11.95 million with accrued interest of Bt1.08 million was awarded by Turtle Party Co Ltd to Saowaluck Navakitpaitoon on June 19. Mida Assets holds 84 per cent of Turtle's shares, and Saowaluck the remaining 16 per cent. She is a director of Turtle.

Mida Assets said it had to release land on Ngam Wongwan Road that Turtle had bought from the original commercial bank, to pledge with new banks for a new loan. The original bank required the opening of a fixed-deposit account - to substitute for the land - amounting to Bt72.2 million.

The cash deposit was made by Saowaluck with Bt60.7 million in cash and Bt11.95 million from a loan issued by Turtle. It therefore had to grant a loan of Bt11.95 million to Saowaluck. The second transaction was the Bt25.5-million loan to IMCC Corp Co Ltd from Mida Leasing.

Mida Assets said Kamol Leosivikul was also a major shareholder of IMCC and an indirect major shareholder of Mida Leasing. Besides, Kamol is the president and executive director of Mida Leasing, so he is classified as a related person to Mida Leasing.

The Nation