A Mauritian corporate entity has dragged Fly Africa Zimbabwe to the High Court seeking repayment of a US$2.9 million debt, being loan and interest extended to the troubled local airliner from November 2019.
In summons filed against Nue Aero (Private) limited trading as Fly Africa Zimbabwe and its executive chairman Hopalong Cassidy Mugwagwa, Blossom View Holdings Limited wants an order confirming cancellation of the loan facility agreement between the two parties
The Mauritian firm is also seeking repayment of loan and interest being US$2 914 978.
In summons before the High Court, Blossom View Holdings narrated how it had extended a loan facility of up to US$4 million to Fly Africa Zimbabwe on 8 November 2019.
Fly Africa is said to have made its first draw down on November 10, 2019 and further requests of draw-downs 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.
The court heard that all draw-downs were at the specific written request and instance of Fly Africa represented by its executive chairman Hopalong Cassidy Mugwagwa.
Blossom View Holdings said Nu Aero only paid R1 906 000, which was equivalent to US$42 265 on January 10 this year.
The money was channelled towards reduction of interests on the loan facility.
Through its lawyers, Masiya-Sheshe and Associates, Blossom View Holdings said Mugwagwa and his airline owe US$2 914 978 being capital and interest on money drawn down by Nu Aero from the loan facility as at August 31 this year.
“The first and second defendants (Nu Aero and Mugwagwa) have not made any further payments towards liquidating the debt prompting the plaintiff to cancel the loan facility extended to the defendants. Despite demand, the defendants have failed, refused or neglected to pay the whole amount owing and they remain in mora,” said the Mauritius registered firm.
“Wherefore plaintiff claims an order confirming cancellation of the loan facility agreement between the parties against the first and second defendants jointly and severally with one paying the other to be absolved.”
“That is, payment of US$1 710 622 being the capital debt payment of US$1 204 355 being interest on money drawn down by the defendant from the loan facility as at August 31, 2020, and payment of interest on the total sum owing at the prescribed rate calculated from date of claim to date of full and final payment plus costs on an attorney and client scale,” it added.
Nu Aero and Mugwagwa are yet to file a response to the litigation and the matter is pending.