Pandhari Lodge (Private) Limited, an accommodation and conference facility centre in Harare, has been dragged to the High Court for allegedly failing to repay a $7 million debt to the Zimbabwe Asset Management Corporation (Private) Limited (Zamco).
According to the court papers, the applicant is Zamco, while Pandhari Lodge together with Keter Trading (Private) Limited, Sunday Chifamba and Swisidhai Nyamupfukudza, are cited as respondents.
Zamco’s mandate, according to court papers, is to “acquire, restructure, deal with or otherwise dispose of non-performing loans by purchasing the same.”
“At the specific request and instance of the first defendant (Pandhari Lodge), the plaintiff (Zamco) purchased and acquired the following non-performing loans: $125 502, 02 from Agriculture Bank of Zimbabwe on February 29, 2016, $2 243 677, 87 from CBZ Bank Limited on the March 3, 2016 and $3 907 274, 17 from CABS,” the court was told.
According to court papers, the parties entered into a facility agreement in the sum of $6 602 791, 97 on December 16, 2016, under the terms that Pandhari Lodge was supposed to pay capitalised insurance premiums on behalf of Zamco to Nicoz Diamond Insurance Company Limited on September 28, last year.
It was also part of the agreement that “the first defendant was to pay the restructuring fee which was to be one percent of the purchased non-performing loans calculated on the daily debit balance and compounded monthly at seven percent per annum, the first respondent was to commence making quarterly instalment payments of $302 473, 50 from the July 31, 2017.”
According to court papers, for due performance of its obligations, Pandhari Lodge ceded some of its mortgage bonds, which were in respect of various properties in Harare’s Glen Lorne Suburb, to Zamco.
“For the due performance of first defendant’s obligations, the second defendant (Keter Trading (Private) Limited) bound itself as a co-principal debtor when it executed a Deed of Suretyship, co-principal debtorship and guarantee with unlimited guarantees in favour of the plaintiff…As such the second plaintiff is jointly and severally liable to pay and settle the plaintiff’s claim,” reads part of the court papers.
According to the court papers, the various properties can now be mortgaged in favour of the plaintiff and are specifically executable.
“The total amount outstanding as at January 5, 2018 is $7 111 732, 17 made up of capital sum, $6 602 791, 97, insurance premium paid to Nicoz Diamond Insurance Company Limited, $4 800, 48, capitalised upfront facility fee, $62 764, 54 and interest in the sum of $441 375, 18.
The sum of $7 111 732, 17 continues to accrue interest on the daily debt balance and compounded monthly at seven percent per annum from January 5, 2018 to date of payment in full.
“In breach of the facility letter and their guarantees, the defendants have refused, neglected or failed to pay,” the court was told.