Trek Petroleum Private Limited has been arraigned before the courts for failing to repay $3,7 million to Ecobank Zimbabwe Limited (Ecobank) in respect of inventory financing and overdraft facilities.
The bank’s lawyers Kantor & Immerman allege the sum arises from money lent and advanced to Trek and guaranteed by Chaparell Trading Private Limited and one Max Ticharwa Makuvise for which they stood sureties in solidum and co-principal debtors. Makuvise and Chaparell trading are cited as second and eighth defendants in the pending High Court Case, while Truck and Trailer Sales Private Limited, Tritoma Investments Private limited, Flexnext Investments Private Limited, Patricia Jane Browell and Deane Stuart Le Roux are cited as third, fourth, fifth, sixth and seventh defendants respectively
The $3,7 million comprises $3,62 million in cumulative unpaid capital and $56 382 in cumulative unpaid interest charges. Interest on the sum at the rate of 20 percent per annum reckoned from the 1st of October 2017 to the date of final repayment. Five pieces of land around the country are on the line as mortgage bonds were registered in favour of the bank hypothecating immovable properties. According to the court documents Trek was Ecobank’s customer at its Borrowdale branch. The agreement between the two was that Ecobank would from time to time accord Trek banking facilities, which included inventory financing and overdraft facilities.
Ecobank would generally honour Trek’s instructions from time to time and would in turn debit Trek’s account with any monies advanced and or withdrawn at the instance of the petroleum dealer together with any charges incurred in accordance with ordinary banking practice. In the event of the overdraft facility being utilised, Ecobank would be entitled to charge Trek with interest compounded monthly on the daily balance owing by the fuel company from time to time at prevailing rates including penalty interest.
As part of the agreement, the amount owing on the account would upon breach of the facilities, expiry of the facilities and or upon demand immediately become due and payable and that in the event Ecobank consults legal practitioners to recover any monies due by Trek, the petroleum dealer would pay all attorney and client costs incurred together with collection commission.
The documents show that Trek accessed the principal amount from the account stated in the period August 31 to September 30, 2017. The bank charged interest, of 20 percent, being 12 percent plus penalty interest rate at 8 percent. During the same period, Trek made repayments or deposits, which amounts were appropriated first to the reduction of accumulated interest and thereafter to outstanding capital.
In breach of the agreement between the parties, and as of the 30th September 2017, the balance outstanding on the account was the sum of $3 675 257,41,” reads part of the document stamped by the Registrar of the High Court on October 16. Trek defaulted and consequently Ecobank cancelled the banking facilities, making the amounts owed due and payable.