Business / Companies
Bank sues bread maker
25 Jul 2011 at 05:59hrs | Views
NMB Bank has filed a High Court order claiming back the US$4,1 million it loaned Lobels Bread Limited in 2009. Lobels has been slapped with numerous lawsuits in the past two years and on several occasions, it had some of its property attached.
NMB entered a credit facility agreement with Lobels in which it advanced US$4 360 000 between February and November 2009.
Lobels did not pay back the money as agreed.
It is also argued that Lobels breached some clauses of the agreement by failing to furnish the bank with its financial statements for 2010 within the required period of four months from the end of the financial year.
Citing the said breaches of the agreement, the bank has issued summons claiming the money with interest.
Meanwhile, NMB has filed a chamber application for default judgment against Lobels arguing that the bakery had not filed its response within the stipulated period.
Lobels filed an appearance to defend the same day the bank filed the application for default judgment.
But there are no opposing documents filed of record.
According to the notice of service filed in the file, Lobels was served with the summons on June 22.
The matter is yet to be determined.
Gula-Ndebele and Partners are representing NMB while Dube Manikai and Hwacha filed an appearance to defend the matter on behalf of Lobels.
NMB entered a credit facility agreement with Lobels in which it advanced US$4 360 000 between February and November 2009.
Lobels did not pay back the money as agreed.
It is also argued that Lobels breached some clauses of the agreement by failing to furnish the bank with its financial statements for 2010 within the required period of four months from the end of the financial year.
Citing the said breaches of the agreement, the bank has issued summons claiming the money with interest.
Meanwhile, NMB has filed a chamber application for default judgment against Lobels arguing that the bakery had not filed its response within the stipulated period.
Lobels filed an appearance to defend the same day the bank filed the application for default judgment.
But there are no opposing documents filed of record.
According to the notice of service filed in the file, Lobels was served with the summons on June 22.
The matter is yet to be determined.
Gula-Ndebele and Partners are representing NMB while Dube Manikai and Hwacha filed an appearance to defend the matter on behalf of Lobels.
Source - Courts
