This article first appeared in The Edge Financial Daily on March 2, 2018

KUALA LUMPUR: JAKS Resources Bhd said it has received a notice of demand from Star Media Group Bhd, requiring it to complete and deliver Tower A of the Pacific Star project by end-June 2018.

It is also requiring that JAKS complete all other obligations undertaken by its wholly-owned unit JAKS Island Circle Sdn Bhd (JIC) in the sale and purchase agreement the latter signed in August 2011.

Star Media has given JAKS seven days to respond to its demands, JAKS said in a stock exchange filing yesterday. The notice of demand was received on Wednesday.

“The company has instructed its solicitors to study the matter and advise on the appropriate actions,” JAKS said.

Star Media's notice came after JAKS announced on Monday that the courts had granted 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 would last until the High Court hears the inter-parte injunction applications on March 7. JAKS also said JIC had maintained its view that Star Media's call on the bank guarantee on Feb 15 was baseless, and that it had valid and sufficient grounds to support its view.

Pending the court’s decision, JAKS said the ongoing operations of the group and JIC — including the development of Pacific Star — remained unaffected and would progress on schedule.

Pacific Star is a project comprising Tower A, an office block of 15-storey 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, as well as a podium, which consists of car parks, office suites and a four-storey commercial centre known as Pacific Star Business Hub.

On Aug 19, 2011, JIC executed the sale and purchase agreement with Star Media to acquire a leasehold land located in Section 13, Petaling Jaya from Star Media for RM135 million, to be satisfied via cash and in kind with the delivery of Tower A.