Under the corporate guarantee, JAKS Resources is to ensure its subsidiary, JAKS Island Circle Sdn Bhd (JIC), fulfils all its obligations under a sale and purchase agreement (SPA) that it had entered into with Star Media Group on the project on Aug 19, 2011.
In the SPA, Star Media Group sold a piece of land in Section 13 for RM135mil.
In lieu of cash, JIC was to deliver a 15-storey office block known as Tower A. The delivery of the tower, however, has been delayed by 28 months despite the media company giving four extensions.
According to an announcement to Bursa Malaysia, JAKS Resources issued the corporate guarantee to Star Media Group on Oct 17, 2013.
Star Media Group said that it had served on the corporate guarantee to JAKS Resources and JIC yesterday.
Last week, Star Media Group called on bank guarantees amounting to RM50mil that was given by JIC in relation to ensuring the completion and delivery of Tower A.
JIC then obtained an ad-interim stay restraining the banks from fulfilling the bank guarantees. The matter is to be heard on March 7.
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