Date: 31 May 2017

MATERIAL LITIGATION APFT Berhad ("APFT" or "the Company") Johor Bahru High Court Civil Suit No. JA-22NCvC-233-12/2016 Teguh Oil Sdn Bhd ("TOSB" or "Plaintiff") vs Asia Pacific Flight Training Sdn Bhd ("APFTSB" or "the Defendant")

Amended Announcements
Please refer to the earlier announcement reference number: GA1-29052017-00132


Type Announcement
Subject MATERIAL LITIGATION
Description APFT Berhad ("APFT" or "the Company") Johor Bahru High Court Civil Suit No. JA-22NCvC-233-12/2016 Teguh Oil Sdn Bhd ("TOSB" or "Plaintiff") vs Asia Pacific Flight Training Sdn Bhd ("APFTSB" or "the Defendant")

1,            Introduction

The Board of Directors of APFT Berhad ("APFT" or "the Company") wishes to announce that an indirect wholly-owned subsidiary, Asia Pacific Flight Training Sdn Bhd ("APFTSB" or "the Defendant") had on 19 December 2016 received a sealed Writ of Summons dated 7 December 2016 ("the Writ") and Statement of Claim dated 6 December 2016 ("Statement of Claim") from Messrs Ander Ang & Associates, the solicitors for TOSB ("the Plaintiff").

2,            The particulars of the claim under the Writ and Statement of Claim, including the amount claimed for and the interest rate

Pursuant to the Writ and Statement of Claim, the Plaintiff claims the following from APFTSB:-

i)                The sum of RM1,574,972.00;

ii)               Interest of 5% per annum on the total sum of RM1,574,972.00 calculated from the date of overdue until the date of full settlement;

iii)              Any other relief that the Honourable Court deem fit and proper; and

iv)              Cost.

The Case Management was held on 11 January 2017, the Court was directed the Plaintiff and APFTSB filed defence and closed of pleadings on 22 February 2017 for mediation.

On 22 February 2017, the Court was fixed the matter for another case management on 6 April 2017 which pending settlement. The consent judgment has been recorded on 04.05.2017.

3,            Details of the default or circumstances leading to the filing of the Writ and Statement of Claim against APFTSB

The circumstances leading to the filing of the Writ and Statement of Claim against APFTSB was due to the fact the APFTSB had apparently failed to pay the outstanding sum together with the interest at the rate of 1.5% per month amounting to RM1,574,972.00 for the supply of aviation fuelling to APFTSB.

4,            A confirmation as to whether APFTSB is a major subsidiary

                APFTSB is a major subsidiary of APFT.

5,            The cost of investment in APFTSB

                The total cost of investment in APFTSB is RM25,000,000.

6,            The financial and operational impact of the Writ and Statement of Claim on the Group

                There is no financial and operational impact on the Group.

7,            The expected losses, if any, arising from the Writ and Statement of Claim on the Group

Save and except for the outstanding payment sum due and the legal cost in defending against the Plaintiff's Writ, the Company is not expected to incur any further losses arising from the Writ.

8,            Steps taken and proposed to be taken in respect of the Writ and Statement of Claim on the Group

The Company is seeking the necessary legal advice to resolve and/or defend against this matter and has since mediated a repayment schedule as stated in the consent judgement in which RM40,000.00 has been paid todate.

Further announcement on the development of the above matter will be made to Bursa Malaysia Securities Berhad in due course.

This announcement is dated 31 May 2017.




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