High Court dismisses JAKS' injunction bid to halt RM50m payment to Star, JAKS to appeal

KUALA LUMPUR(July 23): The Kuala Lumpur High Court has dismissed an Erinford Injunction application filed by a subsidiary of JAKS Resources Bhd, JAKS Island Circle Sdn Bhd (JIC).

The injunction was to restrain two financial institutions from releasing a RM50 million bank guarantee to Star Media Group Bhd. 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.

In its filing to the exchange this afternoon, JAKS said JIC's directors have instructed their solicitors to immediately file urgent applications for the Erinford Injunction before the Court of Appeal, in order to restrain the financial institutions from releasing the payment to Star Media.

“JIC has further, through its solicitors, placed the issuing financial institutions on notice of the pending filing of Erinford Injunction applications before the Court of Appeal,” the filing read.

At noon market close today, JAKS shares were up 4.3% to RM1.20, with 6.2 million shares exchanging hands. — theedgemarkets.com

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