Court dismisses JAKS’s injunction against Star Media

PETALING JAYA: The High Court has dismissed JAKS Resources Bhd’s (JRB) injunction to stop Star Media Group Bhd from claiming a bank guarantee of RM50 million provided for a joint development project in Section 13, Petaling Jaya.

In a filing with Bursa Malaysia yesterday, Star Media said the High Court had further ordered the financial institutions to release the bank guarantees to the group within five working days from the said dismissal.

Meanwhile, JRB told the stock exchange that it had instructed its solicitors to file a notice of appeal at the Court of Appeal and further file applications for stay of execution of the High Court order as well as for an Erinford Injunction on the issuing financial institutions and Star Media pending the hearings of the appeals.

It was reported that the RM50 million bank guarantee is from two financial institutions.

Star Media claimed that JRB’s subsubsidiary JAKS Island Circle Sdn Bhd (JIC) had failed to deliver vacant possession of Tower A of the project within the stipulated deadline, thus enabling it to demand the RM50 million bank guarantees pledged as security.

However, in February, JIC filed an injunction with the Kuala Lumpur High Court to restrain Star Media from receiving the RM50 million bank guarantee.

The deadline for the delivery of vacant possession of Tower A expired on Feb 15 following the latest extension agreed between Star Media and JRB.

Shares of Star Media and JRB closed unchanged at RM1.06 and RM1.28 yesterday, respectively.