Kingdom acquires Valley Technology property over debt

HARARE - Kingdom Bank Limited (Kingdom) has secured a bond through a High Court order to acquire assets belonging to troubled telecommunications company, Valley Technologies (Valley Tech), over a $20 million debt.

Valley Tech is a subsidiary of Zach Wazara’s Spiritage group.

The bank made an urgent High Court application last December seeking an order to be authorised to assume Valley Tech’s property, held as security for the outstanding debt.

In the application, Valley Tech is cited as the first respondent, while Spiritage Business Solutions (Private) Limited, Spiritage Telecom (Private) Limited, Valley Technology former and current employees and the deputy sheriff are also cited as respondents.

The court heard that Kingdom registered in its favour Valley Tech’s moveable property as security.

“On May 10, 2012 applicant (Kingdom) registered a special notarial covering bond over first respondent’s base stations and all technical equipment as security for a loan of $11 000 000,” reads part of an affidavit deposited by Kingdom managing director Francois Molife.

Represented by lawyer Alex Mambosasa from Mambosasa Legal Practitioners, Kingdom filed the urgent High Court application after reports that Valley Tech’s property was being attached by the deputy sheriff over debts owed to other creditors.

Molife told the court that the matter was urgent because Kingdom’s notarial bonds were not perfected, which would result in creditors freely taking Valley Tech’s property.

“In essence it is the applicant (Kingdom) that owns all of the first respondent’s (Valley Tech) property given the quantum of loans advanced to it to date,” reads Molife’s affidavit.

High Court Judge Andrew Mutema granted a provisional order perfecting the notarial bonds.

“The applicant is authorised to hold the assets as security for the payment of all amounts owing by the respondent to the applicant and to retain possession thereof until such a time as all amounts so owing have been paid,” read part of Mutema’s interim order.

Mutema also ordered the Deputy Sheriff to place all the bonded property under judicial attachment.

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