KUALA LUMPUR (July 25): APFT Bhd said one of its shareholders has applied for an injunction to stop the company from holding its annual general meeting (AGM) tomorrow.

In a filing with Bursa Malaysia, the loss-making flight training operator said the application by Hisham Mustaffa will be heard today.

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

On July 18, APFT had filed a lawsuit against Faruk for alleged fraud, namely misappropriation of funds, causing the company to trigger the Practice Note 17 (PN17) status and breach Bursa Malaysia's Main Market listing requirements.

On July 20, the High Court issued an interim order restraining Faruk from trading or dealing in the company'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 company.

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

The external auditors highlighted that APFT incurred a net loss of RM67.57 million during the financial period between Aug 1, 2016, and Jan 31, 2018, and 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.

As at 3.25pm, shares of APFT were unchanged at 2.5 sen, giving the company a market capitalisation of RM41.95 million.