DusitD2 Sh10b loan row with lender opens interest caps' Pandora's box

DusitD2 hotel staff members receive dignitaries during the reopening ceremony of the DusitD2 hotel on July 31, 2019. [AFP]

A legal showdown is brewing between I&M Bank and Synergy Industrial Credit, adding a fresh twist to a longstanding Sh10 billion dispute with 14 Riverside Complex owner Cape Holding Ltd (CPL).

The separate landmark cases now  before two courts put to the test the legality of interest that accrues from court judgments; the rights of a secured creditor if other persons or entities come into the picture to recover money or a debt; and if directors of a company are separate beings from it.