In a filing with Bursa Malaysia, Country View said that the acquisition
KUALA LUMPUR: A shareholder of APFT Bhd has sought court action to stop the loss-making company from holding its annual general meeting (AGM) on Thursday.
The flight training school operator said on Wednesday it was served with an originating summons and notice of application from Hisham Mustaffa to seek an injunction to stop the AGM.
On July 13, Hisham and a former director, Datuk Faruk Othman had served a notice of proposal to appoint directors.
Faruk had sought to nominate Lai Tuck Wai and Rajasingam a/l Kanapathy Pillai to be elected as APFT directors.
On July 18, APFT board had filed a writ and statement of claim against Faruk for alleged misappropriation of the company's funds; causing it to trigger PN17 and also breaching the Main Market Listing Requirements.
It has also filed a notice of application to bar Faruk and his representatives or nominees from participating in the management of the company; and to restrain Faruk from exercising his voting rights attached to the company shares.
The legal dispute has caused the delay in APFT to dispose of shares in Asia Pacific Flight Training Sdn Bhd, an indirect subsidiary.
On July 19, the High Court judge had granted an interim order to stop Faruk from trading in the shares with immediate effect until the suit is disposed of.
Prior to that, the directors of APFT had on June 26 announced that its external auditor, Messrs Adam & Co. had issued a statement of “Material uncertainty related to going concern” concerning APFT’s financial statements for the financial period ended Jan 31, 2018 (FY2018).
APFT group and the company incurred a net loss of RM67.56mil and RM14.51mil respectively for financial period from Aug 1, 2016 to Jan 31, 2018.
As of that date, the group and the company had a negative operating cash flow of RM8.38mil and RM14.28mil. The group’s total current liabilities exceeds its total current assets by RM31.92mil.
Messrs Adam & Co. had also then stated that one of the subsidiaries was unable to meet its borrowings obligations during the financial period.
The external auditor also stated a few principal bankers had issued letters of demand and statement of claim to the subsidiary. Certain creditors had issued letters of demand to the subsidiary due to long overdue debts.
“In view of the matters set out above, there are material uncertainties that may cast significant doubt on the ability of the group to continue as a going concern,” Messrs Adam & Co. said.
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