DBZ sues Findlay over US$2m loan

LUSAKA businessman Harry Valden Findlay has been sued in the Lusaka High Court by the Development Bank of Zambia (DBZ) over an unpaid loan facility given to Chrismar Hotel five years ago in the sum of about US$2 million.

But Mr Findlay has disputed owing US$1, 905, 846.42 nor being in breach of the repayment of the long-term facility.

He stated that the hotel has so far paid US$1, 640, 566.74 towards the loan facility which expires on November 22, 2023.

DBZ which is demanding interest, stated that as at October 25, 2021, Chrismar owed US$1, 905, 846.42.

It is also claiming delivery of the mortgaged property, stand no.4035 in Livingstone. DBZ seeks foreclosure and sale of the mortgaged property.

Chrismar, Mr Findlay, the hotel’s Chief Executive Officer and Osanna Lydia Findlay Peters are sued as first, second and third respondents respectively.

According to documents filed in the Lusaka High Court commercial registry, Chrismar entered into a long term loan agreement with DBZ dated April 18, 2016 with Mr Findlay and Ms Peters as guarantors.

It stated that the first respondent got the loan to finance completion of works on the 40 additional rooms under construction at the hotel in Livingstone to expand it to 99 rooms.

The same money would be used for renovation of the existing 47 rooms at the hotel in Lusaka, purchase and installation of a new generator set and buying eight utility motor vehicles for purposes of operations at the two hotels.

But in an affidavit in opposition, Mr Findlay, did not dispute the loan facility and stated that it was repayable in 72 monthly instalments, effective of the 12 months grace period, which grace period was agreed would commence from the date of the first drawdown.

According to Mr Findlay, the company made payments in 2017 and 2018 in a total sum of US$138, 415.