INTERFIN Banking Corporation (Interfin bank)’ s fight with Christopher Tande-owned Equity Properties has deepened with the High Court giving the troubled bank permission to attach vast tracts of land owned by the property firm to recover its US$2,4 million debt.
This follows a July 2013 High Court order for Equity Properties to pay US$2,356 million in full plus 20% interest per annum to Interfin Bank, as curator Peter Bailey of KPMG Chartered Accountants makes efforts to recover the bank’s funds.
The court order also declared the portion of land, Lot 3 Bannockburn specially executable upon the plaintiff providing security.
Equity properties had used its 163,2199 hectare piece of land known as Lot 3 Bannockburn in Harare as security against a facility the company accessed from the bank.
According to a writ of execution seen by businessdigest, the High Court gave Interfin bank the nod to attach the prime piece of land to recover US$2 356 468,93 plus 20% interest from Equity Properties.
“You are further required and directed that if after due enquiry and diligent search you are unable to find any movable goods belonging to the said defendants or insufficient to satisfy the amount due under this writ that you attach and take into execution a certain piece of land situate in the district of Salisbury being Lot 3 Bannockburn measuring 163, 2199 hectares held under deed of transfer No 906/2008 dated December 19 2008,” reads part of the writ of execution. Interfin was in June 2012 placed under the management of Bailey after an investigation by the central bank revealed that the bank was teetering on the brink of collapse. In July this year, the Reserve Bank of Zimbabwe extended to 2014 the curatorship of Interfin Bank in a bid to conclude plans to shore up the undercapitalised institution as well as recover funds from debtors.
The bank recorded a negative core capital of US$92,9 million as at June 2012, insider loans of US$2,97 million as of December 2011 and a total of US$36,5 million in unsettled payments.