KUALA LUMPUR (July 27): The Court of Appeal today dismissed the application by JAKS Resources Bhd for an Erinford Injunction to restrain the payout of a RM50 million bank guarantee to Star Media Group Bhd.

The bank guarantee was in relation to an agreement between Star Media and JAKS's subsidiary Jaks Island Circle Sdn Bhd (JIC) for the latter to develop a 15-storey tower within the Pacific Star development in Section 13, Petaling Jaya.

JIC filed the fresh Erinford Injunction in the Court of Appeal on Tuesday to restrain two banks from releasing the guarantee, after the High Court dismissed an earlier application on Monday.

Star Media, in a filing with Bursa Malaysia today, said the High Court's decision on July 23 stands and the two banks are therefore required to release payment under the bank guarantee to the company within five working days from July 23.

In a separate filing, JAKS said it has instructed its solicitors to file an urgent application to the Federal Court for an interim order to prevent the release of the guarantee pending JIC's leave application to the apex court.

Star Media shares rose 1 sen or 0.83% to close at RM1.21, giving the media group a market capitalisation of RM893.66 million.

Shares of JAKS lost 3 sen or 2.65% to close at RM1.10, giving the construction player a market capitalisation of RM600.54 million.