PR GIRL Media Limited, organisers of the popular Lusaka July Festival, have been taken to court for alleged failure to pay an over K500,000 mortgage from AB Bank. The financial institution now wants the Lusaka High Court to compel PR Girl Media to immediately pay the K 535,950. AB Bank claims that the debt is an outstanding balance as at July 12, 2019 on credit facilities advanced to PR Girl Media and guaranteed by its directors.
This is contained in an affidavit in support of originating summons filed by AB Bank in the Lusaka High Court. In the summons, AB Bank, through its SME loan officer Chola Binneys, has sued PR Girl Media Limited and its directors. Mr Binneys states that on February 28, 2019, PR Girl Media Limited was availed credit facilities of K450,000.
PR Media Limited provided collateral to secure the credit facilities under collateral contract number C0- 01071001205-75, which were duly executed between the parties. “The credit facility was secured by an equitable mortgage over subdivision A of stand number 125 in Lusaka in the name of Agnes Tonga,” Mr Binneys said.
He said it was an express term of the said loan agreement that the PR Girl Media Limited would repay the loan in 11 monthly instalments of K40,808.22 and one final instalment of K40,808.22 plus interest. Mr Binneys said, however, that despite numerous reminders and demands and all reasonable efforts to encourage the respondents to settle indebtedness, they have failed, neglected and or refused to do so. Mr Binneys said through a letter dated July 3 this year,
AB Bank terminated the credit contract with PR Girl Media and recalled the outstanding loan. “The respondent’s failure to repay the outstanding balance of K535, 950.97 has caused the bank to continue suffering prejudice in form of loss of monies obtained by PR Girl Media and its directors,” he said. Mr Binneys said the outstanding balance could have been utilised by giving out loans to other interested and deserving members of the public. The bank is seeking a court order for mortgagee-inpossession sale for Subdivision A of stand number 1275.
A mortgagee-in-possession sale involves a lender taking possession of your home to sell it, with the intention of paying out or reducing the debt you owe on the property.