Source: Zamco seeks to recover $56m | The Herald December 4, 2019
Fidelis Munyoro Chief Court Reporter
The Zimbabwe Asset Management Corporation (Zamco) has approached the High Court seeking to recover more than $56 million from an agribusiness company that defaulted payment for the first instalment, in line with the contract.
Zamco was established in 2015 with a 10-year mandate to rid the banking sector of all non-performing loans after which the Reserve Bank of Zimbabwe special purpose vehicle was anticipated to wind down operations.
It has since acquired bad debts amounting to over $1 billion from distressed companies that have potential to be rehabilitated upon the injection of fresh capital, and establishment of sound management systems.
The High Court has been told that after signing the over $56 million loan facility with Zamco to finance its operations — in which a number of different but related companies also entered into as co-principal debtors to secure the loan — Elbtree failed to honour its obligations to pay its first instalment of $5 million by the end of October.
The 13 related companies that were supposed to take over the debt if Elbtree failed tried to withdraw from the deal.
Now Zamco, through lawyers Mushoriwa and Pasi Corporate Attorneys, is demanding the repayment of $56 285 787,34 in full from all 14 companies that signed the deal, plus interest of 10 percent a year since August, plus a collection commission of $1 407 144,68, plus costs on the attorney and client scale, which includes lawyers’ fees.
Elbtree and its co-principal debtors are yet to respond to the summons and have at least 10 days to enter their plea to defend the claim.