ZCCM-IH sues Maamba Collieries over $10m debt

ZCCM Investment Holdings has sued Maamba Collieries Limited in the Lusaka High Court demanding payment of US$10million the latter borrowed to pay its creditors.

ZCCM also wants damages, interest, costs and any other reliefs that the court may deem fit. Maamba Collieries is a company operating and running Maamba Coal mine and thermal power plant in Maamba, Southern province.

According to a statement of claim filed in the Lusaka High

Court Commercial registry, ZCCM-IH said in March 2019 it entered into an oral agreement with Maamba Collieries for the advance of US$10million.

ZCCM-IH claimed that the money was advanced to Maamba Collieries to enable it meet its obligations to its creditors.

“On or about March 20, 2019 in furtherance of the said oral agreement, the defendant wrote to the plaintiff setting out terms of the loan advance.

“On or about March 25 2019, in pursuance of the said oral agreement and letter of March 20, 2019 from the defendant to the plaintiff, the plaintiff advanced the said US$10million to the defendant,” the statement read in part.

ZCCM-IH claimed it was a term of the agreement as set out in Maamba Collieries’ letter of March 20, 2019 that it would repay the loan advance from its power sales but not later than 60 days from date of disbursement.

It said despite the 60 days period committed to pay lapsing, Maamba Collieries did not and has not repaid the loan advance.

ZCCM-IH said it has made several follow-ups and even wrote a demand notice requesting for the repayment but Maamba Collieries has refused and neglected to pay the loan advance.

It however, claimed that as a result of Maamba Collieries’ failure to repay the demanded sum, ZCCM-IH has suffered loss of use of its monies and inconvenience as the loan was advanced with the understanding that it would be recovered within the shortest reasonable time.