ZCCM Investment Holdings Plc has dragged Maamba Collieries Limited to the Lusaka High Court demanding payment of US $10 million that the latter borrowed to enable it meet its obligation to its creditors.
ZCCM-IH has lamented that as a result of Maamba Collieries’ failure to repay the loan advance, it has suffered loss of use of its monies.
In a statement of claim filed in the Lusaka High Court Commercial Registry, January 20, ZCCM-IH stated that Maamba Collieries Limited was a company operating and running Maamba Coal mine and thermal power plant in Maamba, Southern Province.
It stated that in March, last year, it entered into an oral agreement with Maamba Collieries for the advance of US $10 million to Maamba Collieries to enable it meet its obligations to its creditors.
ZCCM-IH further stated that on March 20, last year, in furtherance of the said oral agreement, Maamba Collieries wrote to it setting out the terms of the loan advance.
“It was a term of the agreement as set out in the defendant’s letter of March 20, 2019, that the defendant would repay the loan advance from its power sales, but not later than 60 days from disbursement. 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 $10 million to the defendant,” read the statement of claim.
ZCCM stated that despite the 60-day period committed to pay lapsing, Maamba Collieries did not and has not repaid the loan advance.
It stated that on October 10, 2019, following numerous follow-ups, it wrote to Maamba Collieries a demand notice requesting for the repayment of the loaned advance.
ZCCM-IH, however, stated that despite the said letter and the numerous follow-ups, Maamba Collieries had refused and neglected to pay the loan advance.
“As a result of the defendants’ failure to repay the loan advance, the plaintiff has suffered loss of use of its monies and inconvenience as the loan was advanced with an understanding that it would be recovered within the shortest reasonable time,” read the statement of claim further.
ZCCM now wants payment of US $10,000,000, damages, interest, costs and any other reliefs that the Court may deem fit.