Private firm sues PetroTrade for $50 400

GOVERNMENT-OWNED fuel and logistics company, PetroTrade, has been dragged to the High Court over a $50 000 debt by a private company it had engaged to scout for a firm to carry out refurbishments at a service station in Rusape two years ago.

BY BLESSED MHLANGA

Midstar Properties (Private) Limited claims that in January 2013, it entered into a verbal agreement with PetroTrade to facilitate negotiations for the redevelopment of Rusape Service Station.

petrotrade

The deal involved Midstar Properties identifying a potential investor to partner PetroTrade in the redevelopment of the service station.

The agreement was that Midstar would facilitate negotiations between PetroTrade and the investor until a joint venture agreement was signed and completed.

On conclusion of the deal, Midstar Properties was to be paid a facilitation fee of 10% of the total value of the project.

According to summons filed at the High Court under case number 12216/15, Midstar Properties linked up PetroTrade and Lifestyle Holdings (Pvt) Limited in August 2013 and claimed its facilitation fee of $50 416,68.

However, PetroTrade, in a letter dated September 12, 2013, while acknowledging the facilitation fee, negotiated to have it reduced to $11 350,64, which Midstar agreed to only if the fee was paid within seven days.

Through their lawyers Thompson Stevenson and Associates, Midstar Properties allege that PetroTrade failed to pay within seven days, leading to the collapse of the deal.

“In a letter dated September 16, 2013, the plaintiff agreed to the proposal to reduce the facilitation fees . . . on condition that PetroTrade paid the reduced fees within seven days of receipt of letter. PetroTrade did not pay the reduced facilitation fee as stipulated in the letter. Parties thus revereted to the status quo ante (the way things were before) the offer,” part of the summons reads.

Midstar Properties is now demanding PetroTrade to pay the $50 416,68 in facilitation fees plus 5% interest charges and costs of the suit.

One Response to Private firm sues PetroTrade for $50 400

  1. Jane Stevens January 7, 2016 at 12:58 pm #

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