NEDBANK DEMANDS OVER E14M FROM BUFFALO DISTRIBUTORS

MBABANE - Nedbank Eswatini Limited is urgently seeking to recover E14 685 245.40 from Manaim Investments trading as Buffalo Distributors. This follows the company’s alleged failure to meet its financial obligations under a series of loan agreements. The bank has filed an urgent application in the High Court of Eswatini to perfect a deed of hypothecation, allowing it to secure its interests in the respondent’s hypothecated assets. According to court documents, these assets are at risk of being attached and disposed of by other creditors, further jeopardising the bank’s ability to recover the owed amount. The dispute arises from banking facilities granted to Buffalo Distributors since 2022, including a revolving, multi-optional loan and overdraft facility totalling E15 878 107. The facilities were secured by a deed of hypothecation overstock, debtors and movable assets.

breached

In its founding affidavit, Nedbank alleges that Buffalo Distributors breached the agreement by failing to repay both the loan and the overdraft. The bank also claims that the respondent allowed some hypothecated assets to be attached by other creditors, contrary to the terms of the agreement. The bank has argued that the matter is urgent, stating that delays could lead to the removal of hypothecated assets by other creditors. This, it claims, would cause ‘substantial prejudice and irreparable harm’ to its financial interests.
“The respondent is struggling to pay the amounts involved and has stopped trading in most of its shops. Some creditors have already started attaching goods hypothecated to the applicant,” the affidavit states. Nedbank is requesting that the court grants it immediate possession of the hypothecated assets, pending the finalisation of the matter. These assets are located across multiple premises in Manzini, Matsapha, Mbabane and Nhlangano.

ceased

Court documents reveal that Buffalo Distributors owes other financial institutions and creditors, including Arrowfeeds and has ceased operations in several locations. Furthermore, one of the company’s directors is reportedly disowning the business, complicating the bank’s efforts to recover its funds.
In its application, Nedbank has requested the court to:

• Declare the deeds of hypothecation perfected and executable.

• Authorise the bank to claim and recover the sums secured under the hypothecation.

• Permit deputy sheriffs to take possession of the respondent’s assets to secure the bank’s interests.

The court is expected to hear the matter on February 6, 2025, where Buffalo Distributors will have the opportunity to show cause why the bank’s requests should not be granted.

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: