Mozambique ProIndicus creditors demand payment in U.K. court

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Mozambique ProIndicus creditors demand payment in U.K. court

9:44 CAT | 21 Dec 2020

in file CoM

Creditors calling themselves the ProIndicus Institutional Lenders Group issued claims in High Court in London against Credit Suisse, Mozambique and ProIndicus SA, a state-owned company, demanding full payment of $622m loan made in 2013, group says in emailed statement.

Read the full statement below:

ProIndicus Institutional Lenders Group Statement

18 December 2020

Statement

From a spokesperson for the ProIndicus Institutional Lenders Group:

“The ProIndicus Institutional Lenders Group (the “Group”) has issued claims in the English High Court in London against Credit Suisse, the Republic of Mozambique and ProIndicus SA. The claims demand the full payment of amounts due to the members of the Group, under a Government-guaranteed US$622m loan made to the Mozambican state-owned company ProIndicus in 2013. The Government Guarantee was approved by the central bank of Mozambique and confirmed twice by the Government. The members of the Group invested in good faith and on the basis of legally binding agreements, but the debt has now been in default and not been paid for over 4 years. Having attempted to enter into constructive dialogue with the other parties but with limited results, the Group considers that it has no option but to now resolve the situation through the legal proceedings initiated. The Group has engaged Boies Schiller Flexner (UK) LLP to represent it in these proceedings.”

Also read: Mozambique: Court orders dissolution of Proindicus and MAM

Background

The members of the Group entered into a credit agreement with ProIndicus, which was arranged by Credit Suisse and guaranteed by the Government of Mozambique, acting through the Ministry of Finance. The loan was provided to ProIndicus for maritime security operations including the acquisitions of boats and monitoring and protection solutions from the Privinvest Group. Three employees of Credit Suisse have pleaded guilty in criminal court in the United States to accepting bribes to arrange the loan. In addition, the former Mozambican minister of finance, Manuel Chang, and two other Mozambican citizens have also been charged in the United States with various offences in connection with the loan. The members of the Group made their investments in good faith and with no knowledge of any acts that were subject of those criminal proceedings.

Source: Bloomberg Law / ProIndicus Institutional Lenders Group Statement