Wu sought N$40m FNB loan to repay DBN

Property mogul Qiaoxia ‘Stina’ Wu says she applied for a N$40 million loan from FNB Namibia to pay off her debt with the Development Bank of Namibia (DBN), which has dragged her to court to recoup N$68 million it loaned her.This is contained in Wu’s replying affidavit, filed last Friday, in which she informed the court that DBN has not disclosed all relevant documents that could assist the court in reaching an informed decision. She has also asked the court to be granted leave to defend DBN’s action on account of compromise.Wu, who attached several official documents to her affidavit, claims that the amount owed to DBN is not N$68 million, claiming that she secured a settlement offer amounting to N$40 million, plus N$15 million in interest.The businesswoman, who is politically connected within the ruling Swapo party, attached a letter dated 10 March 2023 from DBN’s head of portfolio management, John Mbango, in which the bank informed her that her settlement offer had been considered and was pending approval from the board.Negotiations The conditions outlined in that document were that the settlement offer would be considered once Wu made an immediate payment of N$40 million to reduce the exposure and that DBN would cancel its bonds over erven 6336 and 6337 upon receipt of the payment and replacement of N$13 million worth of security.Furthermore, DBN had said it would convert the remaining loan amount, estimated at N$20.5 million, into zero-coupon redeemable preference shares to be settled within 36 months.DBN also indicated that it agreed to write off N$5.5 million of the preference shares once N$15 million had been fully paid.Wu replied on 30 May, noting that she was still in the process of securing the N$40 million loan from FNB Namibia through her company, Marigold Hotel Developer (Pty) Ltd.Wu informed DBN that FNB had given them until November 2023, warning that a bond takeover is a lengthy process requiring due diligence.Wu then requested an extension until 31 December 2023.Two loansDBN, in a letter dated 19 June 2023, informed Wu that it was prepared to grant an extension, provided that the interest on the loan is paid monthly until the N$40 million settlement from FNB is received by 31 December 2023.In a letter dated 3 July 2023, Wu committed to honouring the obligation to pay the interest until the N$40 million from FNB was received. She promised to pay 50% of the interest in July 2023 and the remaining 50% in August 2023.However, Wu failed to make the payments, and it appears that the FNB application for N$40 million was unsuccessful, prompting DBN to take legal action in July this year to recover its money.DBN is suing Wu alongside fellow Chinese-born business partner, Songgen Huang, through their co-owned companies, Marigold Hotel Developer, First Wall Property Investment and AH Helmsman Group Holdings.In its legal application, DBN claims it is owed N$68 million stemming from two loans received by the pair’s companies. The first loan, amounting to N$20 million, was secured on 31 January 2017, while the second, for N$23 million, was granted on 19 July of the same year.DBN’s former CEO, Martin Inkumbi, signed both loan agreements on behalf of the bank.Failed to payCourt documents indicate that both loans were supposed to be paid off over a period of 10 years, but it appears that Wu and Huang’s companies failed to make the required monthly payments.On 26 February 2021, the duo approached DBN for restructuring and consolidation of the loans, which were restructured to a single loan totalling N$50 412 878.However, the defendants allegedly failed to make the monthly payments on time, or at all, when due.Wu, in her affidavit, disputes that they received any funds when the loans were restructured.A letter by the bank, dated November 2022, indicates that by 31 October that year, the debt soared to N$59 554 854, of which N$1 881 488 was in arrears and an instalment of N$894 059 was due.Legal route As of 29 February 2024, the debt stood at N$68 434 598. This prompted the bank to turn to the court, and, in its founding affidavit, DBN said it wants the court to compel Wu and Huang to pay the money owed.It further demanded that the court order an execution of the defendants’ immovable property if no payment is made.The properties include Erf 6336, a portion of Block L1 in Windhoek measuring 966 square metres; Erf 6337, also a portion of Block L1 in Windhoek, which measures 1 401 square metres and Erf 8531 in Rundu’s Extension 10, measuring 3301 square metres.DBN is represented by Sune de Klerk from Cronje Incorporated, while Wu and Huang are represented by Gilroy Kasper from Murorua Kurtz Kasper Incorporated. The matter is before High Court judge Esi Schimming-Chase. kenya@nmh-hub.com.na

Wu sought N$40m FNB loan to repay DBN

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Namibian Sun 2024-11-22

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Wu sought N$40m FNB loan to repay DBN

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Namibian Sun 2024-11-22

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