Mauritian company sues Fly Africa

A MAURITIAN company has approached the High Court seeking to recover US$4 million borrowed by Fly Africa Zimbabwe.

Blossom View Holdings (Pvt) Ltd is also seeking an order for transfer of the airline’s shares after failing to service the debt.

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 extended a loan facility to Fly Africa Zimbabwe on November 8, 2019.

“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,” read the court papers submitted at the High Court.

“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 money, 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 Holdings is seeking an order to have the respondents cancel a share certificate in the name of Low Cost Enterprise and issue a new and sole shareholding holding for 10 000 shares.

The company is also seeking an order to obtain a capital gains clearance certificate in respect of the sold shares.