JAKS gets interim injunction on RM50m payout to Star Media

KUALA LUMPUR (July 31): JAKS Resources Bhd was granted an interim injunction by the Federal Court yesterday to restrain the payout of a RM50 million bank guarantee to Star Media Group Bhd.

In a bourse filing, JAKS said the interim order is in effect until Aug 1, which is when its Erinford injunction application is heard before the Federal Court.

JAKS’ application for the injunction was earlier dismissed by the Court of Appeal last Friday, and by the High Court last Monday.

Star Media, in a separate filing, acknowledged the apex court had granted the interim injunction, and said it will make necessary announcements to Bursa as and when there is a material development.

JAKS has been entangled in a legal row with Star Media after the latter attempted to make a call on the RM50 million bank guarantee in February when JAKS failed to deliver, on a stipulated date, a 15-storey tower within the Pacific Star development in Section 13, Petaling Jaya.

It was reported that the delivery of the building had been delayed by 28 months. In response to the call on the bank guarantee, JAKS applied for the interim stay to freeze the bank guarantee.

JAKS shares fell nine sen or 8.18% at RM1.01 yesterday, with a market capitalisation of RM556.86 million. Star Media shares rose three sen or 2.48% at RM1.24, valuing it at RM922.35 million.
 

This article first appeared in The Edge Financial Daily, on July 31, 2018.
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