A COMPANY registered in Mauritius operating in Zimbabwe, Blossom View Holdings, is suing a local airliner, Nu Aero trading as Fly Africa Zimbabwe, and its director Hopalong Cassidy Chitariso Mugwagwa, for failing to settle a US$4 million loan extended to them last year.
Blossom View Holdings, through its lawyers Masiya-Sheshe
and Associates, issued summons against Fly Africa Zimbabwe and Mugwagwa,
seeking confirmation of cancellation of the loan facility and settling of the
debt.
Fly Africa was cited as the first defendant while Mugwagwa
is the second defendant.
“On or about the 8th of November 2019 the plaintiff and 1st
defendant entered into an agreement in terms of which plaintiff extended a loan
facility to 1st defendant in the sum of US$4 million. In terms of the term
sheet, 1st defendant was to make drawdowns from the US$4 million upon a written
request to the complainant.
“It was a material term of the agreement that all
disbursements under the said term sheet were at the sole and absolute
discretion of the plaintiff (Blossom View Holdings). In terms of the signed
term sheet for the loan facility, the first defendant (Nu Aero) undertook to
repay the amount drawn down quarterly after the grace period of 60 days.
“The first defendant also agreed and signed that any
interest on the loan advanced would be at 10 percent per month,” said the
Mauritius registered firm.
Summons show that the first drawdown request was made on
November 10 last year and further requests of drawdowns were made, resulting in
the defendants drawing down US$1 710 622 by July 3 this year, and accumulating
an interest of US$1 204 355 bringing the total inclusive of loan and interest
to US$2 914 978.
Blossom View said Nu Aero only paid R1 906 000, which was
equivalent to US$42 265 on January 10 this year. The money was channelled
towards reduction of interests on the loan facility.
In its court papers, the firm claimed that Nu Aero and
Mugwagwa failed to repay the interest on a quarterly basis as they had
initially agreed.
It said both Mugwagwa and his airline owe them US$2 914 978
being capital and interest on money drawn down by Nu Aero from the loan
facility as at August 31 this year.
“The first and second defendants (Nu Aero and Mugwagwa)
have not made any further payments towards liquidating the debt prompting the
plaintiff to cancel the loan facility extended to the defendants. Despite
demand, the defendants have failed, refused or neglected to pay the whole
amount owing and they remain in mora.
“Wherefore plaintiff claims an order confirming
cancellation of the loan facility agreement between the parties against the
first and second defendants jointly and severally with one paying the other to
be absolved.
“That is, payment of US$1 710 622 being the capital debt
payment of US$1 204 355 being interest on money drawn down by the defendant
from the loan facility as at August 31, 2020, and payment of interest on the
total sum owing at the prescribed rate calculated from date of claim to date of
full and final payment plus costs on an attorney and client scale,” it said.
Herald
0 comments:
Post a Comment