This article first appeared in The Edge Financial Daily on July 26, 2018

KUALA LUMPUR: A shareholder of APFT Bhd has failed in his bid to obtain an injunction to stop the group from holding its annual general meeting (AGM) today.

The injunction application by Hisham Mustaffa was dismissed by the High Court yesterday, the group said in a filing with Bursa Malaysia.

“In this respect, the 7th annual general meeting of the company would proceed as scheduled,” the loss-making flight training operator added.

On July 13, Hisham and former APFT executive chairman Datuk Faruk Othman served a notice of a proposal to the group to appoint directors.

On July 18, APFT filed a lawsuit against Faruk for alleged fraud, namely misappropriation of funds, causing the group to trigger Practice Note 17 status and breach Bursa’s Main Market listing requirements.

On July 20, the High Court issued an interim order restraining Faruk from trading or dealing in the group’s shares, or exercising his voting rights pending the full disposal of a suit brought by APFT against him.

The order prohibits him, his representatives or nominees from participating in the management of the group.

Messrs Adam & Co, the external auditor of APFT, has issued a statement expressing material uncertainty with regard to the going concern of the group on June 26.

The external auditor highlighted that APFT incurred a net loss of RM67.57 million during the financial period between Aug 1, 2016, and Jan 31, 2018, and had a negative operating cash flow of RM8.39 million as at Jan 31, 2018.

Adam & Co further noted that the group’s total current liabilities exceeded its total current assets by RM31.92 million.

APFT’s share price closed unchanged at 2.5 sen yesterday, giving the group a market capitalisation of RM41.95 million.