Date: 24 July 2017

MATERIAL LITIGATION APFT BERHAD (APFT or The Company) Companies (Winding-Up) Petition No. JA-28NCC-261-12/2016 Statutory Notice of Demand pursuant to Section 218 of the Companies Act, 1965


Type Announcement
Subject MATERIAL LITIGATION
Description APFT BERHAD (APFT or The Company) Companies (Winding-Up) Petition No. JA-28NCC-261-12/2016 Statutory Notice of Demand pursuant to Section 218 of the Companies Act, 1965

The Board of Directors of APFT Berhad ("APFT" or "the Company") wishes to announce that an indirect subsidiary, PT Technic (M) Sdn Bhd ("PT Technic" or "the Respondent") had on 5 December 2016 was served with a sealed Companies (Winding-Up) Petition dated 5 December 2016 by P3 Technology Engineering Sdn Bhd ("P3" or "Plaintiff") demanding for the payment of the total outstanding sum owing by PT Technic amounting to RM4,436,737.71 for the supply of manpower to PT Technic pursuant to Judgement of the Johor Bahru High Court Suit No.JA-28NCC-261-12/2016 dated 5 December 2016.

On 10 April 2017, the winding up proceedings were withdrawn with no order as to costs but with liberty to file afresh. Subsequently, on 29 June 2017, the solicitors of P3 issued a letter of demand for the settlement sum of RM1,498,000.00 payable under the settlement agreement.

The Company wishes to announce that it will defend the proceedings and will contest any winding-up proceedings that may be initiated.

As the alleged debt has been incorporated in the financial statements, the financial impact from the winding-up proceedings is the loss of investment in PT Technic. There is no impact on the operation of the APFT Group.

PT Technic is not a major subsidiary of APFT and the total cost of investment in PT Technic is RM5,000,000.

The Company is seeking the necessary legal advice to resolve and/or defend against the above matter.

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

This announcement is dated 24 July 2017.





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