This article first appeared in The Edge Financial Daily on July 24, 2018

KUALA LUMPUR: The Kuala Lumpur High Court has dismissed an Erinford injunction application filed by JAKS Resources Bhd’s 51%-owned subsidiary 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.

However, JAKS said JIC 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,” it said in its filing with the exchange yesterday.

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

Star Media attempted to make a call on the RM50 million bank guarantee in February. The media group alleged then that the delivery of the building had been delayed by 28 months.

JIC responded by obtaining an interim stay to freeze the bank guarantee.

More recently, on July 12, the High Court dismissed the legal suit filed by JIC to restrain the financial institutions from releasing the bank guarantee to Star Media, with costs.

In an immediate response, JIC instructed its solicitors to file a notice of appeal to the Court of Appeal, and further instructed for applications for a stay of execution of the court order, as well as an Erinford injunction on the issuing financial institutions and Star Media pending the hearing of the appeal.

Then on July 17, the High Court granted an ad interim order to restrain the issuing financial institutions of the bank guarantee from releasing the proceeds of the bank guarantee to Star Media, pending the disposal of the Erinford application which took place yesterday.