Jaks seeks arbitration in disputes with Star Media

PETALING JAYA: Solicitors of Jaks Resources Bhd’s (JRB) sub-subsidiary Jaks Island Circle Sdn Bhd (JIC) has served a notice of arbitration to resolve all disputes between JIC and Star Media Group Bhd, including issues arising from the claim by Star Media on interest and call on bank guarantees.
Last week, JRB was served with a letter of demand by Star Media to complete and deliver Tower A by end of June 2018, of which Star Media asked JRB to respond to in seven days.
Last month, the solicitors of JIC filed an injunction with the Kuala Lumpur High Court 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.
Jaks shares closed unchanged at RM1.62 today with 5.27 million shares done, while Star Media closed down 0.77% at RM1.29 with 742,600 shares done.