KUALA LUMPUR (March 6): JAKS Resources Bhd said its 51%-owned unit JAKS Island Circle Sdn Bhd (JIC) is seeking arbitration to resolve its dispute with Star Media Group Bhd over the completion and delivery of Tower A of the Pacific Star project.

"The board of directors of JAKS wishes to inform that the solicitors of JIC [have] served a notice of arbitration pursuant to clause 19.2 of the Sales and Purchase Agreement dated Aug 19, 2011 to resolve all disputes between the two parties by way of arbitration including issues arising from the claim by Star Media Group Bhd on interest and the call on the bank guarantees," it said in a filing with the bourse today.

This follows the notice of demand it received on Feb 28, in which Star Media demanded the completion and delivery of Tower A by end-June 2018, giving JIC seven days from the date of the notice to respond.

The court previously granted JIC an interim stay restraining two banks from releasing guarantee proceeds totalling RM50 million to Star Media, after JIC submitted two injunction applications to bar the banks from making the payout.

The stay order is effective until the High Court hears the inter-parte injunction applications on March 7.

The Pacific Star mixed development comprises Tower A — a 15-storey office building, a 13-storey office suites building (Tower B), two 24-storey residential blocks (Tower C and E), a 15-storey residential block (Tower D), four levels of basement car park and a podium consisting of car parks, office suits and a four-storey commercial centre.

JAKS shares closed unchanged at RM1.62 today, giving it a market capitalisation of RM801.86 million.