26th Oct 2015 08:58
LONDON (Alliance News) - Cambria Africa PLC Monday said it has received a demand from one of its creditors for the repayment of USD4.8 million as the debate over when the loan should be repaid continues.
Back in September, Cambria Africa said it "strongly disputes" claims made by a company that Cambria Africa is due to repay a substantial loan with Cambria Africa accusing the firm of trying to "accelerate the repayment of the loans".
The lender, Consilium Corporate Recovery Master Fund Ltd, has issued Cambria Africa with a statutory demand in the Isle of Man for the repayment of USD4.8 million pursuant to the terms under the loan agreement between the two companies.
"In response to the statutory demand, the company has stated that there is a genuine and substantial dispute as to whether the debt is presently payable and that any future presentation of a winding up petition would constitute an abuse of the court's process," the company responded.
The figure demanded by Consilium Corporate Recovery is the same as the USD4.8 million secured by Cambria Africa back in September from Lonrho Ltd earlier this year after a court case between the two companies. Cambria Africa was originally seeking USD10.0 million from Lonrho.
In another blow to shareholders, the company said Consilium Corporate Recovery has converted its floating charge on Cambria's assets, including its primary bank accounts nad the USD4.8 million settlement from Lonrho as part of the dispute.
That means Cambria Africa is now reliant on the USD1.1 million standby facility made available by Ventures Africa Ltd to the company so it could be used as security for costs in relation to its now settled litigation against Lonrho.
"The company is relying on this standby facility to fund its day-to-day operations," said Cambria Africa.
The litigation with Lonrho came after Cambria Africa was accused of unlawfully transferred payments by Lonrho to one of its subsidiaries whilst it was managing Cambria in 2008, and over the three aircraft leases.
Cambria shares were down 3.6% to 0.506 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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