KUALA LUMPUR (Aug 24): APFT Bhd’s indirect wholly-owned subsidiary, Asia Pacific Flight Training Sdn Bhd (APFTSB), has received a notice of appointment of receiver and manager by Kuwait Finance House(Malaysia) Bhd (KFH).

APFTSB is principally engaged in flight training and is an approved flight training organisation under the Department of Civil Aviation, Malaysia.

In a filing with Bursa Malaysia today, APFT said APFTSB has an outstanding loan of RM4.15 million, with KFH and had negotiated to pay in full from sales of aircraft to PT Trans Asia Pacific Aviation Training (TAPAT) in Indonesia.

However, the payment from TAPAT was delayed and KFH had decided to exercise its debenture on the assets and appointed the receiver and manager.

Mohamed Roslan Abdul Rahman and Chan Siew Mei of KPMG Deal Advisory Sdn Bhd were the appointed receivers and managers of the property of APFTSB, under the power contained in the debenture dated Nov 14, 2008, Aug 1 2011, June 21 2012 and Feb 9,2015.

The appointment of receivers and managers will not have any additional financial and operational impact on the APFT group, and the company is not expected to incur any further loss arising from the aforesaid appointment.

The proceeds from the sale of TAPAT is supposed to come in by the end of this month. The amount of the sale proceeds is RM3.49 million and the shortfall of RM666,368 will be covered by another sale of assets from a company of which APFT’s executive director has interest, which is expected to be in by the end of next month.

APFT shares closed unchanged at 5.5 sen today, for a market capitalisation of RM26.25 million.