Star Media suit disposed of, damages limited, says JAKS CEO

JAKS Resources Bhd’s court case with Star Media Group Bhd has recently seen its conclusion, with JAKS paying out about RM 50 mil to Star Media, which JAKS CEO Andy Ang shared is “limited damages awarded.”

“There were damages of about RM50 mil, but the positive thing for us is that the case is now resolved, and that the damages awarded to Star Media are limited at 8% of the interest calculated from the supposed day of delivery, and the actual day of delivery,” said Ang to FocusM.

This follows JAKS receiving a notice of demand from Star Media in 2018, which required JAKS to complete and deliver Tower A of the Pacific Star project by the end of June 2018.

The terms of the sale and purchase agreement has JAKS Island Circle Sdn Bhd, wholly owned subsidiary of JAKS, provide a RM50 mil irrevocable and on demand bank guarantee in favour of Star Media.

The guarantee is that Tower A will be completed and delivered within three years from the vacant possession date or three years from the date of the approval of the agreed plans for Tower A, whichever is later.

However, Ang noted that there were various changes made to the plans for Tower A, which led to JAKS being prevented from completing the tower.

As it stands, JAKS is currently appealing the case and disputing the matter, while pursuing its own countersuit against Star Media.

“If the countersuit is successful, we will seek to recover back the damages paid, along with what the court awards as compensation,” said Ang.

At the end of the trading day, JAKS saw its shares last done at 76.5 sen, up half a sen, with 7.15 million shares traded. – Sep 7, 2020

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