More woes for Italian firm in dam scandal
Amount borrowedBarclays Bank, through Iseme, Kamau and Maema (IKM) Advocates, argued that it fears the company is about to go under before repaying Sh595,655,552 it borrowed to finance the purchase of the equipment. Lawyer Kamau Karoli submitted that the company has already filed an insolvency case in Italy and that unless the court allows the bank to preserve the equipment, it will lose a substantial amount of money.
SEE ALSO :Trader in dams saga fights for her money“Their insolvency case was admitted by the court in Italy which shows they are not in a position to settle the debt owed to the bank. They are likely to proceed and dispose off their assets without repaying the loan if let to go,” said Karoli. In her affidavit, the bank’s head of business, Anne Mbatha, swore that the company operated accounts with the bank and in April 2017 applied for a loan to purchase vehicles and other equipment. She stated that on May 23, 2017, they executed an asset finance agreement through which the company agreed to transfer ownership of the equipment to the bank until the loan is fully repaid. “The agreement was that there will be joint ownership of the vehicles and equipment and that the bank may take possession if the company fails to honour the agreement on repayment,” said Mbatha. She stated that the company has failed to pay loan installments as agreed and that the bank stands to suffer losses of the principal amount and interest which continues to grow at 6.5 per cent per year.
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