Star Media says letter from Jaks Resources cannot be considered as arbitration notice

PETALING JAYA: Star Media Group Bhd today acknowledged the receipt of a letter from Jaks Resources Bhd, but denied it as being a notice of arbitration.
In a filing with Bursa Malaysia, Star Media said the letter “does not and cannot amount to a notice of arbitration particularly when it is premature and does not even state or particularise Jaks’ alleged dispute intended to be referred to arbitration.”
Star Media said its solicitors has responded to Jaks’ solicitors disagreeing with Jaks' contentions as to “disputes or differences which have therefore arisen between Star Media and Jaks in connection with the SPA”, when at all material times Jaks had never raised such alleged disputes or differences during the performance of their obligations under the SPA.
It said such alleged disputes or differences does not in any way affect the company’s call on the bank guarantees, which terms clearly provide that the performance of the bank guarantees shall not be prevented by any contestation, protestation or arbitration.
“In the said letter, Jaks had requested to waive the procedural step of panel resolution pursuant to Clause 19.1 of the SPA which the company is not agreeable to waive,” it added.
Star Media claimed that Jaks’ sub-subsidiary Jaks Island Circle Sdn Bhd (JIC) failed to deliver vacant possession of Tower A of the Pacific Star project by the stipulated deadline enabling it to demand the RM50 million bank guarantees pledged as security.
Last month, JIC's solicitors filed an injunction with the Kuala Lumpur High Court to restrain Star from receiving the proceeds of a bank guarantee of RM50 million provided for the development project.
Star Media shares rose one sen or 0.78% to RM1.30 with 306,600 shares changing hands, while Jaks was up one to RM1.56 with 4.5 million shares traded.