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KUALA LUMPUR: A shareholder of APFT Bhd 
filed a lawsuit to prevent the loss-making company from holding its annual general meeting (AGM) on Thursday.
The flight training school operator said Wednesday received an initial summons and a notice of application from Hisham Mustaffa requesting an injunction to terminate the AGA
The On July 13, Hisham and a former director, Datuk Faruk Othman, had served a notice of intention to appoint directors.
Faruk had requested the appointment of Lai Tuck Wai and Rajasingam and Kanapathy Pillai to be elected directors of the APFT.
On July 18, the APFT Board of Directors filed a writ and a claim against Faruk for alleged embezzlement of company funds; the obligatory to trigger the PN17 code and to break the requirements of the main market registration.
He also filed a notice of application to prevent Faruk and his representatives or candidates from participating in the management of the company; and prevent Faruk from exercising voting rights attached to the shares of the company.
The legal dispute caused the delay in the APFT to sell shares of Asia Pacific Flight Training Sdn Bhd, an indirect subsidiary.
the High Court Judge granted an interim order to prevent Faruk from trading the shares with immediate effect until the complaint was decided.
Prior to this, the APFT Directors had announced on June 26 that its external auditor, MM. & Co. had issued a statement of "material business continuity uncertainty" regarding the APFT financial statements for the year ended January 31, 2018 (FY 2018). ).
The APFT Group and the Company incurred a net loss of respectively RM67.56 million and RM14.51 million for the period from August 1, 2016 to January 31, 2018.
From that date, the group and the company negative cash flow of RM8.38mil and RM14.28mil. The Group's total short-term liabilities exceed its current assets by RM 31.92 billion.
Messrs Adam & Co. also stated that one of the subsidiaries was not able to meet its financial obligations during the fiscal year.
The external auditor also stated that a few senior bankers had sent application letters and claims to the subsidiary. Some creditors have issued letters of request to the subsidiary because of long debts.
"Based on the above, there are significant uncertainties that could cast significant doubt on the ability of the group to continue operations.", Stated Messrs. Adam & Co.
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