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Renaissance Financial Holdings Limited’s 30 percent stake in Afre Corporation from interested parties on the basis that the shareholding had already been ceded to the network service provider.

Econet wants the share certificates to be surrendered to the Registrar of the High Court for safekeeping until October, when RFHL is expected to clear a US$5,7 million debt.
The company said it understood that several companies were contemplating a bailout of the troubled institution so they would gain access to the valuable properties in Afre.

Econet’s application is intended to have the court bar any bids for the shareholding.
Justice Susan Mavangira is expected to hear the application in her chambers soon.

According to the papers filed by Ms Beatrice Mtetwa of Mtetwa and Nyambirai on Friday, Econet chief executive Mr Douglas Mboweni claims RBZ issued to Econet foreign currency bonds with a face value of US$2 392 044 with a tenure of six months.

RFHL is alleged to have requested Econet to cede the bonds to it on certain terms and conditions.
In terms of the agreement, RFHL was obliged to pay the sums of US$957 070 by January 12 last year and US$1 434 974,67 by February 2 this year.

Despite the maturity of the bonds, RFHL had failed to settle the amounts on the due dates, it is claimed in the court papers.
Between February 15 2009 and May 8 2011, Econet deposited with Renaissance Merchant Bank a cumulative US$3,1 million specifically for settlement of Econet’s external creditors who included its suppliers.

RMB reportedly failed to carry out the transaction and instead converted the money to its own use.
Econet later gave various instructions to RMB, among them investing US$2 million for 30 days and US$500 000 for one year between March 2 and 3 this year, but nothing was done.

In all cases it is claimed RFHL failed to repay the invested funds including interest.
Upon demand, it is stated in the court papers that RFHL acknowledged indebtedness to the tune of US$5,7 million and secured the debt by ceding its 30 percent shareholding in Afre.

“Although cession was effected on April 25 2011, the first respondent (RFHL) was given up to October 30 2011 to settle the debt,” read the papers.
Econet considered reports that the RFHL and RMB might face liquidation and that several companies were eyeing the 30 percent stake in Afre and were showing interest in rescuing the troubled firms.
In the papers, Econet says its “prayer” is that the court bars any attempts to transfer the shares from the hands of RFHL pending the determination of the matter.