Thursday 28 Mar 2024
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KUALA LUMPUR (July 30): JAKS Resources Bhd has been granted an interim injunction from the Federal Court today to restrain the payout of a RM50 million bank guarantee to Star Media Group Bhd.

In a filing with Bursa Malaysia today, JAKS said the interim order is in effect until Aug 1, which is when the Erinford Injunction application will be heard before the Federal Court.

JAKS's application for the injunction was earlier dismissed by the Court of Appeal on July 27, and by the High Court on July 23.

Star Media acknowledged in an exchange filing today that it has been served notices from JAKS regarding the matter, and said it will make necessary announcements to the stock exchange 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 the 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% to close at RM1.01 today, for a market capitalisation of RM556.86 million. Star Media, meanwhile, rose three sen or 2.48% to close at RM1.24, valuing it at RM922.35 million.

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