Star Media up, JAKS down after court ruling

Star Media up, JAKS down after court ruling

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KUALA LUMPUR (July 13): Shares in Star Media Group Bhd rose while JAKS Resources Bhd fell after the High Court ordered the two issuing financial institutions to release a RM50 million bank guarantee called on by Star Media Group February, in relation to an agreement for the purchase of a piece of land in Section 13, Petaling Jaya for RM135 million.

This means JAKS will have to pay the RM50 million sum to the two issuers.

At 9.18am, Star Media rose 3.77% or 4 sen to RM1.10 with 33,100 shares traded while JAKS fell 6.25% or 8 sen to RM1.20 with 2/.28 million shares done.

Star Media said the Court had yesterday dismissed the legal suit filed by JAKS to restrain the financial institutions from releasing the bank guarantee to Star Media, with costs.

The financial institutions are required to release the bank guarantee to Star Media within five working days.

In an immediate response, JAKS said in a separate bourse filing that its 51%-owned unit JAKS Island Circle Sdn Bhd (JIC) has instructed its solicitors to file a notice of appeal to the Court of Appeal. JIC has further instructed for applications for a stay of execution of the Court order, as well as an Erinford injunction on the issuing financial institutions and Star Media pending the hearings of the appeal.

An Erinford Injunction is filed pending an appeal or an application of leave to appeal.

JAKS added that the notice of appeal, stay of execution and injunction are expected to be filed by Friday, July 13.

"In the meantime, the solicitors of JIC have already put the issuing financial institutions on notice not to release the monies on the bank guarantee, pending the hearing and disposal of the notices of application for Erinford Injunction," the group said.