Can't launch junit tests from Intellij 13.1

When trying to lauch a test with additional program parameters I can see the following:

<PATH>\JDK64\1.6.0.31.1\bin\java -ea -Didea.launcher.port=7544 -Didea.launcher.bin.path=C:\IntelliJ.13.1\bin -Dfile.encoding=UTF-8 -classpath <SOME_CP_HERE> com.intellij.rt.execution.application.AppMain com.intellij.rt.execution.junit.JUnitStarter -ideVersion5 "@name-Dparam1=x -Dparam2=y" some.package.for.MyTest

Any suggestions?

Thanks,

Alex