Trustco sued for N$357m in England over unpaid loans
Listed company Trustco Holding Groups Limited is being sued for N$357.1 million (US$21.4) over unpaid loans in England.
Trustco said it is appealing the judgment.
If they lose the appeal, Trustco runs the risk of losing the subsidiary, Elisenheim Property Development Company (EPDC) Limited which guaranteed these loans.
The loans were granted to Quinton van Rooyen’s majority-owned company by Helios Oryx Limited in 2016 – a pink deal that funded part of the Elisenheim flush settlement.
The Elisenheim loan was worth more than 580 million Namibian dollars (US$35) at the current exchange rate and was negotiated with Helios Oryx Limited, which has its roots in London.
The Namibian reported in 2020 that Trustco and Helios are suing over the matter, with Trustco claiming that Helios caused it damage, and Helios, on the other hand, demanding repayment of the money.
According to Trustco’s recently released unaudited financial statements for the six months ending February 2022, Helios said all outstanding amounts under the facility agreement were due and demanded a total payment of $19.6 million. US dollars.
In January last year, the High Court of England and Wales granted summary judgment in favor of Helios and against Trustco for the sum of 357.1 million Namibian dollars (21.4 million US dollars), as well as costs, and dismissed Trustco’s counterclaim. .
On March 15, 2022, Trustco in its commentary on the financial statements said it had emailed the court a request for leave to appeal the dismissal of its counterclaim to the Supreme Court.
The application for authorization to appeal was rejected on March 23, 2022.
On March 29, 2022, Trustco filed another application, this time seeking leave to appeal the dismissal of its counterclaim to the Supreme Court.
This claim is being contested by Helios and Trustco is awaiting a final decision from the court.
Helios is also said to have brought an action in Windhoek against EPDC, in its capacity as security provider for Trustco’s obligations, in relation to the facility agreement.
EPDC filed a counterclaim against Helios and the case is still pending.
Interim financial statements indicate that the company performed poorly compared to the six months ending February 2021.
Revenue is down to N$51.6 million from a 2021 high of N$213.3 million.
The bottom line, however, shows different results – for the six months ending February 2022, Trustco reported making a profit of N$578 million.
In 2021, Trustco recorded a loss of N$291 million.
What has changed in 2022 is the inclusion of income from a “deemed” disposal and acquisition of subsidiaries to the tune of N$551 million in the income statement. This means that the accounting for some of the company’s assets has been reassessed and this gain has been treated as income, although the company has not made any transactions.
An accounting policy review also saw the company’s assets soar – reaching N$8.5 billion, most of which (89%) is classified as investments held at fair value through profit or loss. .
All other assets are now held at fair value, at the consolidation level – leaving only a cash balance of less than N$38 million and loans to beneficiary companies at N$623 million.
The balance of equity and liabilities is strong, with an equity balance of N$6.4 billion, with share premium remaining dominant at N$3 billion.
The financial statements are available on the company’s website
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