Chiyangwa fails to pay $4m debt, assets up

via Chiyangwa fails to pay $4m debt, assets up – NewZimbabwe 11/12/2015

INTERFIN Bank has obtained a writ of execution to attach property belonging to businessman Philip Chiyangwa after he failed to settle a loan advanced to his Pinnacle Properties Holding and interest charges all adding up to $4 million.

The bank, which is now under liquidation, extended a credit facility of $2 million to Chiyangwa’s Pinnacle Properties Holdings in April 2011 which has since attracted an interest of $2 million.

High Court Justice Lavender Makoni in November ordered him to pay back the amount.

Interfin Bank lawyers, Sawyer and Mkushi, this week obtained a Writ of Execution and wrote to the Sheriff to effect it.

“We request you attach and remove Defendant’s property at the following address: 11 Crowhill Road, Borrowdale, Harare,” reads the letter dated Thursday, December 10.

Chiyangwa’s lawyer, Gavin Gomwe of Mutamangira and Associates told The Source on Friday that the firm had made an application to the High Court challenging Justice Lavender Makoni’s order.

“We have filed an application for recession of the judgement by Justice Makoni on 19th  November 2015 at a pre-trial conference. If that is successful, we intend to proceed with an Urgent Chamber Application to halt the Writ,” he said.

Chiyangwa was last week voted as the new Zimbabwe Football Association (ZIFA) president

Interfin was placed under liquidation at the beginning of the year after it failed to secure $50 million in fresh capital during a three-year curatorship period despite reported interest from 12 potential investors.

The liquidator, the Depositors Protection Corporation (DPC), is struggling to collect $168 million worth of loans issued out by the bank before it collapsed and expects to recover only $17 million from debtors.

Insider and related party loans amounted to $90,6 million as at January 27 this year, with almost all the loans non-performing. Its main shareholders are Jerry Tsodzai, Farai Rwodzi and Tim Chiganze with a combined ownership of 60 percent.

The DPC said it had handed over the entire loan book to the courts for collection.

About 52 debtors with outstanding values worth $88, 2 million could not be located by the Sheriff while only $2,5 million had been received in partial and full payments as of last month.