Fidelis Munyoro Chief Court Reporter
The Zimbabwe Asset Management Corporation (Zamco) has approached the High Court battling to recover more than $56 million from an agribusiness company that defaulted payment of the first instalment in terms of 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 special purpose vehicle was anticipated to wind down its operations. It has since acquired bad debts amounting to over $1 billion from stressed companies that have the potential to be rehabilitated upon the injection of fresh capital.
After signing the multi-million-dollar loan facility with Zamco, to finance its operations, in which a number of different but related companies also entered into the agreement as co-principal debtors, Elbtree failed to honour its obligations to pay its first instalment.
Elbtree, according to the deal, would repay the capital sum of $56 285 787.34 in seven monthly instalments, with the first instalment of $5 000 000.00 being paid on or before October 31 2019. In this regard, the co-principal debtors were supposed to intervene and settle the first instalment. However, all the co-principal debtors withdrew from the deal upon realization that the principal debtor reneged on first payment.
In its claim filed at the High Court, through its lawyers Mushoriwa and Pasi Corporate Attorneys, Zamco is demanding the repayment of $56 285 787.342 at the rate of 10 percent per annum from August 21, 2019 to the date of payment in full. Elbtree and 13 other companies that signed the deal as co-principal debtors—are listed as defendants in the multi-million-dollar suit