Business / Companies
City Link luxury coaches battles debt
22 May 2013 at 09:08hrs | Views
Luxury bus firm City Link Coaches fears a court order compelling it to pay close to a million dollars in debt will cripple its operations.
According to court papers, the lawsuit emanated from a luxury bus and a Range Rover vehicle leased to City Link over an unspecified period.
City Link allegedly owes $799 139, 95 but claims it was not served with papers for the court process which resulted in a default court order.
The bus company filed an urgent chamber application seeking to stop attachment of properties that include land in Harare.
In the application, City Link cited African Trading (Private) Limited and the Deputy Sheriff as first and second respondents respectively.
"First respondent (African Trading Limited) is in possession of an order of court and a writ of execution which it desires to act upon imminently.
The execution of the writ which seeks to levy a sum of $799 139, 55 will surely make applicant fold operations," City Link lawyer Advent Tatenda Tavenhave said in an affidavit.
City Link said it had already applied for rescission of the default judgment and it appears respite is on course.
High Court Judge Ben Hlatshwayo has now granted a consent order after the parties agreed on a payment schedule.
According to the schedule, City Link will pay $50 000 by end of this month and pay monthly instalments of $15 000 beginning end of June until the arrears are cleared.
According to court papers, the lawsuit emanated from a luxury bus and a Range Rover vehicle leased to City Link over an unspecified period.
City Link allegedly owes $799 139, 95 but claims it was not served with papers for the court process which resulted in a default court order.
The bus company filed an urgent chamber application seeking to stop attachment of properties that include land in Harare.
In the application, City Link cited African Trading (Private) Limited and the Deputy Sheriff as first and second respondents respectively.
The execution of the writ which seeks to levy a sum of $799 139, 55 will surely make applicant fold operations," City Link lawyer Advent Tatenda Tavenhave said in an affidavit.
City Link said it had already applied for rescission of the default judgment and it appears respite is on course.
High Court Judge Ben Hlatshwayo has now granted a consent order after the parties agreed on a payment schedule.
According to the schedule, City Link will pay $50 000 by end of this month and pay monthly instalments of $15 000 beginning end of June until the arrears are cleared.
Source - daily news
