By Kuda Chideme, HARARE, November 23 (The Source) – Businessman Philip Chiyangwa has been ordered by the High Court to pay back a loan advanced to his Pinnacle Properties Holding by the collapsed Interfin Bank and interest charges all adding up to $4 million.
According to court papers seen by The Source, the bank which is under liquidation extended a credit facility of $2 million to Chiyangwa’s Pinnacle Properties Holdings in April 2011 which has since attracted an interest of $2million.
Pinnacle Properties Holdings, Chiyangwa and Native Investment Africa are cited as First, Second and Third defendants respectively.
“First defendant defaulted on making due and punctual payment under the agreement and has not paid anything towards liquidation of the debt and the total outstanding amount under the agreement is $4,060,110. The first defendant acknowledged liability of the outstanding amount on the 9th of September 2013,” the papers read.
In an order issued last Thursday, High Court Justice Lavender Makoni struck off Chiyangwa’s appearance to defend and plea.
“Judgement with costs on legal practitioner and client scale and commission be and is hereby entered against 2nd Defendant for payment of $2 million being capital, $2 million being interest and $60 110 being bank charges,” reads the order.
Interfin was placed under liquidation at the beginning of the year after it failed to secure $50 million in fresh capital during a three-year curatorship period despite reported interest from 12 potential investors.
The liquidator, the Depositors Protection Corporation (DPC), last month said it was struggling to collect $168 million worth of loans issued out by the bank before it collapsed and expects to recover only $17 million from debtors.
Insider and related party loans amounted to $90,6 million as at January 27 this year, with almost all the loans non-performing. Its main shareholders are Jerry Tsodzai, Farai Rwodzi and Tim Chiganze with a combined ownership of 60 percent.
The DPC said it had handed over the entire loan book to the courts for collection.
About 52 debtors with outstanding values worth $88, 2 million could not be located by the Sheriff while only $2,5 million had been received in partial and full payments as of last month.