Mauritian Company Sues FlyAfrica Zimbabwe Over Debt
Defunct Fly Africa Zimbabwe (FZW, Harare International) and its directors are being sued again in the Harare High Court, this time over debts of USD300,000 dating back to 2017 owing to the Sykes Bond Holding Company, The Daily News has reported citing court documents.
Nu-Aero (Pvt) Ltd. t/a Fly Africa Zimbabwe and its directors, Cassidy Mugwagwa and Mejias Munyaradzi, are the respondents in the case which is pending. This follows after the company and Mugwagwa were sued by Mauritian company, Blossom View Holdings, last year for failing to settle a USD4 million loan facility.
According to papers before the Harare High Court, Sykes is considering reinstating an application for the liquidation of Fly Africa Zimbabwe, which in court papers has acknowledged owing USD881,220 to Sykes.
The bondholder in 2017 issued debentures to raise USD300,000 in capital for Fly Africa Zimbabwe. “The debenture subscription agreement resulted in the plaintiff (Sykes) becoming a creditor of the defendant (Fly Africa Zimbabwe) with an entitlement to interest on debentures at a rate of 8% per annum exclusive of charges.
Defunct Fly Africa Zimbabwe (FZW, Harare International) and its chairman Cassidy Mugwagwa are being sued by Mauritian company Blossom View Holdings for failing to settle a USD4 million loan facility extended last year, Zimbabwean media reports.
The Herald reported Blossom View Holdings, through its Harare lawyers Masiya-Sheshe and Associates, had issued a summons against Nu Aero trading as Fly Africa Zimbabwe and Mugwagwa, seeking confirmation of cancellation of the loan facility and settling of the debt.
Fly Africa Zimbabwe was a low-cost carrier that suspended operations in late 2015 when its AOC was suspended. It was acquired by Mugwagwa Holdings in 2017.
It was reportedly undergoing recertification after a planned relaunch in 2018 did not materialise. At the time it had relied on a B737-500 wet-leased from Africa Charter Airline (FSK, Johannesburg O.R. Tambo).
Mugwagwa in an email to ch-aviation in October 2020 claimed to still plan the resumption of operations with 29.09-year-old B737-500 ZS-PKU (msn 25249) stored at Johannesburg O.R. Tambo and formerly operated by the defunct carriers, Nationwide Airlines.
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