By Bahle Gama
Local financial service provider GetBucks is demanding a loan re-payment of about E10 million from its customers, Skin Investment.
In its court application filed on Monday, GetBucks told the court that in July 2023 it entered a E10 million written fixed-term loan agreement with Skin Investment (Pty) Ltd.
It was further agreed that the fixed term would attract an interest of 4 per cent per month and that the loan principal interest was to be repaid in full to GetBucks within a period of four months from the date of the first advance of the capital. The last date was September 25, 2023.
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After negotiations, the two parties met on November 6, 2023, and agreed to restructure the loan facility to the effect that the balance of E9.7 million would be taken as the new balance of the new loan facility payable over six months at the agreed interest rate.
The monthly payments were to commence on December 31, 2023, and in effect the companies would default on its obligation, and the balance would immediately become due and payable.
The agreement stated that GetBucks would be entitled to enforce the provisions of the agreement as if it were an order of the court, and all legal costs associated with the recovery of debt shall be borne by their attorney and own client scale.
The second defendant in the matter Soares da Costa Consortium reportedly guaranteed and bound itself jointly and severally liable as surety and co-principal debtor with the first defendant Skin Investments for the payment of the aforementioned amount.
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However, contrary to the undertaking made by Skin Investments, the company has failed to honour the terms of the loan agreement by failing to pay the amounts agreed upon with interest since November to date.
A letter of demand for the E9.7 million was issued by GetBucks to Skin Investments.
“However, the company has failed or neglected to pay the sum of E9.7 million, and as a result, the two companies jointly and severally remain indebted to GetBucks.
The mentioned sum is due, owing, and payable. Despite the lawful demand, they have failed to make the necessary payment due,” reads the application.
Getbucks has applied for the court to order the two companies to pay the E9.7 million, with an interest of 9 per cent per annum, as well as costs of suit and on client scale.
