KUALA LUMPUR (Jan 4): APFT Bhd said its indirect subsidiary PT Technic (M) Sdn Bhd has been served with a winding-up order from P3 Technology Engineering Sdn Bhd, for failing to pay RM1.5 million.

This is pursuant to a settlement agreement dated April 5, 2017 entered into between the two companies.

In a filing with Bursa Malaysia today, the loss-making flight training provider said PT Technic had received a sealed copy of the winding-up order dated Dec 18, 2017 from Messrs T. S. Chong & Co, the solicitors acting for P3 Technology.

The order also sought for Ketua Pengarah Insolvensi to be appointed as liquidator of PT Technic and that P3 Technology be allowed the costs of and incidental to the winding-up proceedings, which will be paid by the liquidator out of the assets of PT Technic.

"As the alleged debt has been incorporated in the financial statements, the financial impact from the order is the loss of investment in PT Technic. There is no impact on the operation of APFT Group," said APFT.

"PT Technic is not a major subsidiary of APFT and the total cost of investment in PT Technic is RM5 million," it added.

APFT said it is seeking the necessary legal advice to resolve and/or defend against the order. "Further announcement on the developments of the above matter will be made to Bursa in due course."

APFT shares closed unchanged at 3 sen today, with 460,000 shares done, giving it a market capitalisation of RM40.27 million.