Finsbury Investment is a member of Mahtani Group of Companies. It has recently taken possession over Odysseas Mandenakis hotel, Radisson Blu, following a High Court judgment in Lusaka, which sustained Hotellier Limited owners’ 40 million USD indebtedness to the Finance Bank of Zambia.
Dr. Mahtani & Zambia seems to be very happy with the ruling. He said that the court’s verdict justifies the PF administration’s handing back to FBZ to its original shareholders from Rupiah Banda who wanted to sell the bank at just 5 million USD to First Rand Bank.
In the meantime, Odysseas Mandenakis, the Managing Director of Hotellier Limited, had apologized over all the allegations that were made by them to the different Zambian authorities through a letter, which was authored by Sakwiba Sikota's Central Chambers involving the business dealings of Dr. Mahtani and Finance Bank.
On 7th May, the Lusaka High Court delivered a judgment where Hotellier Limited was found to have been liable to pay the compound interest to the Finance Bank at an overdraft rate for the amount that it borrowed to construct the hotel. This is in a matter where Finsbury Investments and Finance Bank as plaintiffs sued the Ody’s Group and Hotellier Limited as defendants for the money that they took from Finance Bank for constructing the hotel.
A consent judgment was delivered on 20th June by Flaviour Chishimba, the Lusaka High Court judge. According to the judgment, Finsbury Investements taking possession of Hotellier Limited’s shares in its new hotel Radisson Blu was the result of an unpaid settlement between the two parties. The judge said that the ruling was made against the defendants in the sum of 40 million USD and that the amount included indebtedness of Hotellier Limited.
According to the Court order, the Finance Bank is to take over the debts of Ody’s Group in relation to PTA Bank in sum of 22/3 million USD and other liabilities to Barclays Bank that amounts to 1.3 million USD. The court even ordered that subdivision of the stand number 19028 that’s part of the Ody’s Complex is to be revised. As per the order, the office complex of baking hall on 19028 shall be transferred to the bank and Ody’s Group is to be paid 1 million USD for it, which the Finance Bank already paid. The court further ordered that the service station of 19028 is to be retained by the Ody’s Group and that the shares of Radisson Blu Hotel are to be vested in Finsbury Investments.
Chishimba said that of the total amount which Hotellier Limited is to pay to FBZ, if it is found later that the amount actually exceeds 23.5 million, then the amount that’s above the figure would be paid by the Ody’s Group. He also ordered that Ody’s Works Limited to transfer the subdivision A of 19028 in particle satisfaction of the indebtedness of the defendants to FBZ. Apart from this, Hotellier Limited is to increase its share capital and assign to FBZ such number of shares as will be decided by Finance Bank in full satisfaction of the hotel’s indebtedness to the institution.
There was another consent judgment that was delivered by Issac Chali on 20th June where Ody’s Works Limited and Hotellier Limited sued the bank over issues of shareholding. However, in this case, the parties decided to resolve the shareholding issue. In another judgment delivered by the same judge on the same date in an issue in which Radisson Blue hotel contractor and Flame Promotions sued FBZ for 6.2 million USD debt, both the parties decided for a settlement as well.
Dr. Mahtani & Zambia seems to be very happy with the ruling. He said that the court’s verdict justifies the PF administration’s handing back to FBZ to its original shareholders from Rupiah Banda who wanted to sell the bank at just 5 million USD to First Rand Bank.
In the meantime, Odysseas Mandenakis, the Managing Director of Hotellier Limited, had apologized over all the allegations that were made by them to the different Zambian authorities through a letter, which was authored by Sakwiba Sikota's Central Chambers involving the business dealings of Dr. Mahtani and Finance Bank.
On 7th May, the Lusaka High Court delivered a judgment where Hotellier Limited was found to have been liable to pay the compound interest to the Finance Bank at an overdraft rate for the amount that it borrowed to construct the hotel. This is in a matter where Finsbury Investments and Finance Bank as plaintiffs sued the Ody’s Group and Hotellier Limited as defendants for the money that they took from Finance Bank for constructing the hotel.
A consent judgment was delivered on 20th June by Flaviour Chishimba, the Lusaka High Court judge. According to the judgment, Finsbury Investements taking possession of Hotellier Limited’s shares in its new hotel Radisson Blu was the result of an unpaid settlement between the two parties. The judge said that the ruling was made against the defendants in the sum of 40 million USD and that the amount included indebtedness of Hotellier Limited.
According to the Court order, the Finance Bank is to take over the debts of Ody’s Group in relation to PTA Bank in sum of 22/3 million USD and other liabilities to Barclays Bank that amounts to 1.3 million USD. The court even ordered that subdivision of the stand number 19028 that’s part of the Ody’s Complex is to be revised. As per the order, the office complex of baking hall on 19028 shall be transferred to the bank and Ody’s Group is to be paid 1 million USD for it, which the Finance Bank already paid. The court further ordered that the service station of 19028 is to be retained by the Ody’s Group and that the shares of Radisson Blu Hotel are to be vested in Finsbury Investments.
Chishimba said that of the total amount which Hotellier Limited is to pay to FBZ, if it is found later that the amount actually exceeds 23.5 million, then the amount that’s above the figure would be paid by the Ody’s Group. He also ordered that Ody’s Works Limited to transfer the subdivision A of 19028 in particle satisfaction of the indebtedness of the defendants to FBZ. Apart from this, Hotellier Limited is to increase its share capital and assign to FBZ such number of shares as will be decided by Finance Bank in full satisfaction of the hotel’s indebtedness to the institution.
There was another consent judgment that was delivered by Issac Chali on 20th June where Ody’s Works Limited and Hotellier Limited sued the bank over issues of shareholding. However, in this case, the parties decided to resolve the shareholding issue. In another judgment delivered by the same judge on the same date in an issue in which Radisson Blue hotel contractor and Flame Promotions sued FBZ for 6.2 million USD debt, both the parties decided for a settlement as well.