KUALA LUMPUR (Aug 7): Star Media Group’s Bhd said the High Court has partly allowed its summary judgment application in respect of its corporate guarantee claim against JAKS Resources Bhd. 

The claim is related to the balance purchase price of RM134.5 million for the sale of a piece of land in Section 13, Petaling Jaya from Star Media to JAKS. 

In a bourse filing, Star Media said the court has ruled that the company be paid damages by JAKS, being late payment interest at a rate of 8% per annum on the RM134.5 million owed from Oct 25, 2015 and July 6, 2020. 

The late payment interest is to continue running from July 6, 2020 until JAKS delivers the company’s entitlement in compliance with the terms of the sale and purchase agreement signed by the parties, the company added. 

“The company will make the necessary announcements on further material development in respect of this matter as and when necessary,” Star Media said.

On April 30 last year, Star Media filed a suit against JAKS, claiming the RM134.5 million balance purchase price, along with late payment interest of RM43.22 million.

Under the deal between the two parties, JAKS was to undertake the Pacific Star development on the land, which includes a 15-storey office block (Tower A).

The legal row started after Star Media attempted to make a call on a RM50 million bank guarantee when JAKS failed to deliver Tower A within the stipulated period, after delivery of the building had been reportedly delayed for 28 months.

Star Media’s share price fell one sen or 2.67% to 36.5 sen today, giving it a market capitalisation of RM269.58 million. 

JAKS finished three sen or 3.75% lower at 77 sen, valuing the firm at RM504.44 million.