JAKS gets interim restrain of RM50m guarantee to Star

KUALA LUMPUR (July 18): JAKS Resources Bhd obtained an ad interim order at the High Court yesterday to restrain two financial institutions from releasing the group’s RM50 million bank guarantee to Star Media Group Bhd.

In a filing yesterday, the group said the order was granted to stop the release of the bank guarantee pending the disposal of an Erinford injunction application, which has been fixed for hearing on July 23.

The RM50 million guarantee is in relation to an agreement between Star Media and JAKS for the latter to develop the 15-storey “Tower A” within the Pacific Star development in Section 13, Petaling Jaya, by end-July.

Last Thursday, the High Court ordered the two financial institutions to release the bank guarantee to Star Media by tomorrow, after the court dismissed a suit by JAKS.

The following day, JAKS filed an appeal with the Court of Appeal against the dismissal of its suit. It also applied for a stay of execution and an Erinford injuction at the High Court.

The order granted yesterday, said Star in a separate filing, is effective until July 23, being the date when the hearing of the application for the Erinford injunction is heard by the High Court.

JAKS said its lawyers yesterday withdrew the stay of execution application.

Shares in JAKS closed unchanged at RM1.20 yesterday with a market capitalisation of RM655.13 million.

Shares in Star Media also closed unchanged at RM1.12, giving the media group a market capitalisation of RM827.19 million.

This article first appeared in The Edge Financial Daily, on July 18, 2018.

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