BY DESMOND CHINGARANDE
A Mauritian Company has approached the High Court for a compelling order after FLY AFRICA Zimbabwe failed to settle a US$4million loan facility it borrowed from them.
A Mauritius registered company, Blossom View Holdings (Pvt) Ltd sought a compelling order before the High Court on the cancellation of a loan facility and payment of the owed cash.
Fly Africa Zimbabwe is a low-cost carrier based at the Robert Mugabe International Airport operating under a joint venture between Fly Africa Zimbabwe and Nu Aero (Pvt) Ltd.
According to court papers Blossom View is a foreign corporate entity registered in accordance with the laws of Mauritius, but entered and signed a loan facility agreement with Fly Africa Zimbabwe on November 8, 2019.
It has been submitted that on the date in question, it entered into an agreement with Nu Aero in terms of which it extended a loan facility in the sum of US$4 million upon a written request by the company.
“It was a material term of the agreement that all disbursements under the said term sheet were at the sole and absolute discretion of the plaintiff (Blossom View Holdings).
“In terms of the signed term sheet for the loan facility, the first defendant (Nu Aero) undertook to repay the amount drawn down quarterly after the grace period of 60 days. The first defendant also agreed and signed that any interest on the loan advanced would be at 10% per month,” reads the court papers.
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“The first defendant made its first drawdown request on November 10, 2019. Further requests of drawdowns were made resulting in the defendants drawing down US$1 710 622 by July 3, 2020, and accumulating an interest of US$1 204 355 bringing the total inclusive of loan and interest to US$2 914 978,” wrote the lawyers.
It is alleged that after securing the said loan facility, Nu Aero only made a single payment of ZAR1 906 000 which translated to US$42 265 on January 10, 2020, which amount was apportioned towards reduction of interest.
Blossom View is seeking an order to have the respondents cancel share certificate in the name of Low Cost Enterprise and issue a new and sole shareholding holding 10 000 shares in Nu Aero Limited.
They also seek an order to obtain a capital gains clearance certificate in respect of the sold shares and pay the tax assessed as due by Zimra within seven days.
