Jaks told to deliver Tower A by June

PETALING JAYA: Jaks Resources Bhd (JRB) has been served with a letter of demand by Star Media Group Bhd to complete and deliver Tower A by end of June 2018.
Jaks has seven days to respond to the letter.
“The company has instructed its solicitors to study the matter and advise on the appropriate actions,” JRB said in a stock exchange filing.
JRB had received a notice of demand from Star Media dated Feb 28 under the Corporate Guarantee dated Oct 17, 2013, requiring JRB to complete or cause to be completed JRB’s sub-subsidiary Jaks Island Circle Sdn Bhd’s (JIC) obligations under the sale and purchase agreement dated Aug 19, 2011, including but not limited to completing and delivering Star’s entitlement by end of June 2018.
Last month, the solicitors of JIC filed an injunction with the High Court in Kuala Lumpur to restrain Star Media from receiving the proceeds of a bank guarantee of RM50 million provided for a development project in Section 13, Petaling Jaya.
Star Media claimed that JIC failed to deliver vacant possession of Tower A by the stipulated deadline enabling it to demand the RM50 million bank guarantees pledged as security.
It said the deadline for the delivery of vacant possession of Tower A had expired on Feb 15 following the latest extension agreed between Star Media and Jaks.
Jaks shares closed 0.59% lower to RM1.68 today with 5.14 million shares done, while Star Media stood unchanged at RM1.30 with 1.02 million shares done.