Afre, Timba deadlocked

to raise capital on the market, paying back a loan advanced to him by businessman Mr Jayesh Shah. He had borrowed the money from  Mr Shah for the recapitalisation of RMB, now Capital Bank Corporation, to meet regulatory requirements in 2009.
But he had difficulty in raising cash to pay back the loan and approached the Afre board of directors for assistance.
The assistance would come in the form of a scrip loan that he would use to raise money on the market.
The board approved the loan.
According to Afre, Mr Timba pledged his 314 342 shares in Econet Wireless, 49 006 892 equity in Pearl Properties (Pvt) Ltd and 49 270 541 equity in      RTG.
When the loan repayment period expired, Afre demanded the return of the shares.
Mr Timba allegedly failed to honour the agreement.
This prompted Afre to approach the High Court to restore the shares advanced to Mr Timba.
Lawyers for both parties, Mr Vote Muza of Muza and Nyapadi, and Mr Joseph Mafusire of Scanlen and Holderness appeared before High Court judge Justice Samuel Kudya last Friday to negotiate a settlement.
But the dispute was referred to trial after the parties failed to reach an agreement on a settlement.
The trial will determine the tenure for the scrip loan that was given to Mr Timba by Afre.
Mr Muza had argued that the restoration period was not yet due since the shares would be returned after three years from the date of the loan, in terms of the agreement entered into between his client and Afre.
He argued that Afre did not give Mr Timba shares held in Econet.
“He will aver that these had at all material times been held by RMB to secure a loan extended to plaintiff (Afre),” said Mr Muza.
He also said RMB, through the curator, Mr Reggie Saruchera, acknowledged indebtedness for the shares.
“He (Mr Saruchera) is aware that the said shares have since been surrendered and are presently in the safe custody of the plaintiff. Accordingly, the claim for the said shares is baseless and malicious,” said Mr Muza.
Mr Mafusire yesterday confirmed the dispute was referred to trial.
He said Afre would seek the                    restoration of its shares, which Mr Timba pledged for his own personal debts.
“He admits taking the shares but argues that it was with the permission of the Afre Corporation board and he can only return them after three years,” said Mr Mafusire.
“He is trying to buy time because there was no such arrangement. There are documents to show that he was                supposed to return the shares in May 2011.”
Mr Mafusire said Afre wants Mr Timba to return the shares or pay an equivalent amount which can only be determined at the date of judgment.