KUALA LUMPUR (July 17): JAKS Resources Bhd secured an ad interim order at the High Court today to restrain two financial institutions from releasing its RM50 million bank guarantee to Star Media Group Bhd.

This follows the filing of an application for an Erinford injunction by JAKS on July 13 to stop the release of the guarantee to Star, pending the hearing of an appeal filed by JAKS. 

The ad interim order was granted to protect JAKS’ interest until the Enrinford injunction is decided.

The RM50 million guarantee is in relation to an agreement between Star 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.

On July 12, the High Court ordered the two financial institutions to release the bank guarantee to Star by July 19, after the court dismissed a suit by JAKS.

The following day, JAKS filed an appeal at the Court of Appeal, and also applied for a stay of execution and for an Erinford injuction at the High Court.

The order granted today is effective until July 23, being the date when the inter-parties hearing of the application for the Erinford injunction is heard by the High Court, Star said in a separate filing.

JAKS said its lawyers have also withdrawn the application for stay of execution today.

Shares of JAKS closed unchanged at RM1.20 today, for a market capitalisation of RM655.13 million.

Shares of Star Media also closed unchanged at RM1.12, giving the media group a market capitalisation of RM827.19 million.