The Board of Directors of JAKS Resources Bhd wishes to announce that the Company, had on 30 April 2019 been served with a Writ of Summons and Statement of Claims filed by Star Media Group Berhad (“STAR”) against the Company:
STAR is claiming that the Company as corporate guarantor to JAKS Island Circle Sdn Bhd (“JIC”) is liable for JIC’s purported default of obligations under the Sale and Purchase Agreement dated 19 August 2011 executed by STAR with JIC (“SPA”). The SPA is in relation to the purchase of land from STAR for consideration of RM135.0 million to be paid by a cash deposit of RM0.5 million (made on 19 August 2011) and the balance of RM134.5 million to be satisfied within three (3) years from the date of vacant possession of the Land or approval of the Agreed Plans for Tower A, whichever is later (“Completion Period”) by the completion, delivery and transfer of legal title, with vacant possession and Certificate of Completion and Compliance, free from all encumbrances whatsoever of Tower A comprised in the Pacific Star development in Section 13, Petaling Jaya, Selangor (“STAR’s Entitlement”).
STAR is claiming:
(a) specific relief for the Company to complete or cause to be completed JIC’s obligations under the SPA namely the completion and delivery of STAR’s Entitlement by 31 October 2019 in full and proper compliance with the terms of the SPA;
(b) damages in the sum of RM43,216,876.71 being Late Payment Interest calculated at the rate of 8% per annum on the Balance Purchase Price of RM134.5 million from 25 October 2015 (“1st Extended Completion Date”) to 31 October 2019;
(c) damages in addition to or in lieu of specific relief to be ordered and assessed by the appropriate Court Officer where necessary;
(d) in default of compliance with prayers (a) to (c) above and without STAR having to make any further application, the Company shall pay the sum of RM134.5 million being the Balance Purchase Price and Late Payment Interest in the sum of RM43,216,876.71;
(e) alternative to the claim (a) to (d) above, that the Company be ordered pursuant to the terms of the Corporate Guarantee to indemnify STAR in the sum of RM134.5 million from 25 October 2015 to date of full payment of the Balance Purchase Price;
(f) aggravated and/or exemplary damages;
(g) interest on any sums and/or damages awarded by this Honorable Court;
(h) costs; and
(i) such further and/or other reliefs as this Honourable Court deems fit and proper.
The case has been fixed for case management at the Kuala Lumpur High Court on 6 May 2019.
The Company has appointed solicitors to take the necessary actions to respond and oppose the above claims.
Impact on Financial and Operations
There is no significant impact on the operations of the Company arising from this claim. The estimated potential liability is up to the amount claimed against the Company of RM177.7 million. Other than this amount claimed, there is no significant financial impact to the Company.
The Company will make further announcement on the developments of the above matter as and when necessary.
This announcement is dated 3 May 2019.
No comments:
Post a Comment