FIRST Capital Bank has dragged Commerce, Trade and Industry Minister Margaret Mwanakatwe to court over an unpaid loan after failing to meet the debt obligations before the October 31, 2013 which was the debt service period.
This is in a matter in which a company owned by Mwanakatwe and her husband Mupanga Mwanakatwe- Aluworks Industries Limited obtained a loan from First Capital Bank in October 2012 in the sum of K800,000 to be paid back within one year.
Aluworks Industries, Mwanakatwe and husband Mupanga as borrower, customer and guarantor respectively have been sued together in the sum of K1,034,965.48 as outstanding sum under a credit facility offered to the company, which was guaranteed to be paid by October 31, 2013.
“Repayment was guaranteed by the second and third responded as directors. The debt was secured by the third party mortgage dated October 18, 2012 relating to stand number 11357/M off Leopards Hill Road. In their submissions to the High Court, the Bank has demanded that the duo, as directors of Aluworks should pay back the money in 14 days or risk losing their property under the aforesaid credit facility that ordered to honour terms of their guarantee.
Aluworks Industries obtained an overdraft facility to finance its working capital at K800,000 on an agreed term on a revolving line of credit with 18 percent added only if the loan was serviced beyond the agreed first 12 months.
The Bank accused Aluworks and its directors of neglecting to settle the debt and as at October 15, 2015, the total outstanding amount was K1 034 965.48 which sum was due and payable either jointly or severally.