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Conrad Mwanawashe Business Reporter
THE High Court has issued a default judgment against Tetrad Investment Bank following the bank’s failure to honour call deposits amounting to about $1,1 million.
The judgment was made in favour of H.P Nursten & Company, a real estate company last month. The real estate company placed with Tetrad Investment bank $1 051 225 in four tranches in October and November last year and had promised to pay interest at the rate of 12 percent on maturity.

Court papers show that on October 29 last year, the real estate company made two deposits to Tetrad, $400 000 under deal number 514796, and $300 000 under deal number 514228. On November 4 and 12, the company paid to Tetrad a further $351 225 under deal number 517717 and $501 000 under deal number 520943 respectively.

The amounts were due on November 25 last year but Tetrad failed to pay.

“I need to confirm that since December of 2013 and now the Respondent (Tetrad) has been making efforts to find an out of court settlement in this matter which would enable the Applicant (H.P Nursten & Company) to be paid. However, none of the arrangements are coming to any fruition and with the pressure that Applicant is now facing from both sellers and purchasers of properties it sold which resulted in the particular purchase prices which were deposited in the Respondent’s bank, it is important that the Applicant has the security judgment,” said John Spicer, the real estate company’s executive chairman.

Tetrad’s head of legal and advisory, Mr Marcus Campbell-Reynolds, acknowledged the bank’s liquidity challenges and indebtedness to H.P Nursten in a letter to the real estate company dated December 12 last year.

“As you appreciate we are experiencing the liquidity problems common with other financial institutions. We note your demand for settlement and will make every effort to pay and when the liquidity situation improves,” said Mr Campbell-Reynolds.

The real estate company’s lawyers said Tetrad was disposing of its stake in Zimplow in order to raise money to pay several depositors and wanted the bank to disclose the total amount to be raised and a guarantee that it would receive preferential treatment in the event the sale went through. But Tetrad, although confirming the sale, refused to give any guarantees.

“We are currently undertaking a major asset disposal as per your discussions with Mr Mlambo that we hope to complete in the next three weeks, being our best estimate, in order to raise funds for settlement of outstanding payments,” said Mr Campbell-Reynolds.

Tetrad has in the recent past faced a plethora of applications over its failure to meet obligations.

Last month the Supreme Court dismissed an appeal by the bank in a dispute with Bindura University of Science Education involving more than US$500 000, which the university had invested in the troubled bank.

Tetrad had asked the superior court to decide whether it was proper for the lower court to dismiss as not being urgent its application to stop the attachment and sale of its assets by the university.

Last September, Tetrad was accused of theft of trust property after it allegedly withdrew $1 024 284,88 from Tapvice Enterprise’s account.