The Development Bank of Namibia (DBN) has initiated legal proceedings against a company of prominent Chinese businesswoman Qiaoxia Wu, also known as Stina Wu.
The bank is seeking N$68 million in outstanding loans repayments and accrued interest.
In a lawsuit filed in the Windhoek High Court, the DBN alleges that Wu’s company Marigold Hotel Developer breached a loan agreement, failing to punctually make monthly payments to the bank.
According to court documents, the company took two loans amounting to N$43 million from the DBN. Accruing interest and penalties saw the total debt escalate to N$68 million.
According to the court documents, Wu’s Marigold Hotel Developer concluded a written loan agreement with the DBN in January 2017. In terms of the agreement, the DBN provided a loan of N$20 million to the company, and the loan had to be repaid in monthly instalments over a period of 10 years.
“The first loan would bear interest at the minimum lending rate […] generally charged by First National Bank, plus 1.5%, i.e. prime rate (currently 11.50% plus 1.5%),” the loan agreement states.
Marigold Hotel Developer listed a property in Windhoek and the companies First Wall Property and AH Helmsman Group as securities for the loan from the DBN.In July 2017, Marigold Hotel Developer, represented by Wu, concluded another loan agreement of N$23 million with the DBN.
In January 2020, Wu and the DBN agreed that she would also provide a mortgage bond over a property at Rundu as additional security for her company’s loans.
In February 2021, Wu concluded a restructured and consolidated property finance agreement with the DBN, the bank says. At that stage, Marigold Hotel Developer’s restructured debt to the bank amounted to N$50 million.
“The restructured loan together with interest would be repaid by Marigold Hotel Developer to DBN, by way of monthly instalment payments within a period of 120 months, with a grace period of six months of the capital,” DBN says in the court documents.
According to the DBN, at 29 February this year, Marigold Hotel Developer was in arrears to the tune of N$68 million, together with interest.
The DBN said on 28 November 2022 it demanded payment from Marigold Hotel Developer, but the company failed or refused to make the payment to the bank.
The DBN wants the court to order Marigold Hotel Developer to pay N$68 million plus interest to the bank.
The bank has also requested a court order to declare properties listed as securities to the loan executable, allowing the bank to seize and sell them to recover the outstanding debt.In a status report filed by Wu’s lawyer, Gilroy Kasper, on the court’s web-based filing system on Monday, it was stated that Wu was out of the country and would in due course file an answering affidavit and condonation papers in opposition to DBN’s application, if it is not withdrawn before.
“We, in these circumstances, invite you to withdraw your application,” Kasper said.
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