NMB drags firm to court

The bank, through its lawyer Mr Tavengwa Masara of VS Nyangulu and Associates, has issued summons against Tankin Trading to recover its money from the company.
The matter is yet to be set down for hearing at the High Court.
According to the summons, Tankin applied for a loan and the bank granted it US$393 000, as working capital at an interest rate of 36 percent per annum.
Since May last year, Tankin has not paid back the loan, hence breaching the loan agreement.
On August 26 last year, the company through its representatives, acknowledged its indebtedness in writing and undertook to clear the debt in monthly installments of US$30 000.
“As a result of the breach of the credit facility agreement the amount outstanding as at the February 1 2011 was US$457 408,11.
“Now the whole sum is due and payable together with legal costs at legal practitioner and client scale and collection commission,” read the papers.
It is claimed Agricultural Insurance Company Limited, the one that stood in a surety in the deal, did not also honour the debt, prompting the bank to approach the High Court.