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KUALA LUMPUR (March 8): Star Media Group Bhd has dismissed a letter from JAKS Resources Bhd as being a notice of arbitration.
In a filing this afternoon, Star said it had on March 6 received a purported notice of arbitration from JAKS’s solicitors to resolve the disputes between the two parties by way of arbitration.
The dispute arose over the completion and delivery of Tower A of the Pacific Star project.
On March 6, JAKS said its 51%-owned unit JAKS Island Circle Sdn Bhd (JIC) is seeking arbitration to resolve its dispute with Star.
Star today said its solicitors had responded to JAKS’s solicitors disagreeing with JAKS’s contentions as to “disputes or differences which have therefore arisen between Star 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.
“The Company views that the said Letter does not and cannot amount to a notice of arbitration, particularly when it is premature and does not even state or particularise JAKS’s alleged dispute intended to be referred to arbitration,” Star said.— theedgemarkets.com
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