Lonrho sued for fraudulent misrepresentation
Lawsuit also accuses Lonrho of breaches of contract and diversion of insurance claims
Tuesday 05 August 2014
Lonrho, the UK investment company which used to dominate vast swathes of Africa under the buccaneering leadership of Tiny Rowland, is being sued for fraudulent misrepresentation by a former subsidiary over the lease of three aircraft used in Kenya and Zimbabwe.
The former subsidiary, now called Cambria Africa plc and an investment firm listed on the junior AIM stock market, alleges that Lonrho transferred $1 million to a different subsidiary through a loan facility agreement which Cambria Africa alleges was a “sham” , according to a High Court writ filed last month.
Lonrho is alleged to have misappropriated other funds from the proceeds of renting out aircraft owned by Cambria Africa and not paying them the lease payments which were contractually due, according to the High Court writ filed last week.
The $10 million claim also accuses of Lonrho of fraudulent misrepresentation when Cambria bought one of its aircraft, breaches of contract and diversion of insurance claims proceeds by Lonrho to another subsidiary which were due to Cambria.
The dispute relates to three aircraft rented out to Lonrho subsidiaries, one of which was acquired from Lonrho. These aircraft were allegedly returned in a damaged and dilapidated state, never flew again and were sold for scrap value, according to the writ, and the subsequent claimed loss in value of the planes is a central focus of their lawsuit.
Lonrho is also accused of fraudulent misrepresentation during negotiations to reach a settlement last year.
When asked about these allegations, Lonrho told 'The Independent': "Lonhro Ltd is a private company and will not be commenting on these reports" The shareholders of Lonrho - Swiss billionaires Thomas Schmidheiny and Rainer Marc Frey - also declined to comment.
- 1 David Cameron refers to 83-year-old Labour MP Dennis Skinner as 'Jurassic Park'
- 2 Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
- 3 Optical illusion turns blue demon into brunette
- 4 German ethics council calls for incest between siblings to be legalised by Government
- 5 Saudi Prince Alwaleed bin Talal will donate entire $32bn fortune to charity
Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
German ethics council calls for incest between siblings to be legalised by Government
Saudi Prince Alwaleed bin Talal will donate entire $32bn fortune to charity
Forget little green men - aliens will look like humans, says Cambridge University evolution expert
Greece debt crisis: Country firmly on course to hold EU referendum as eurozone leaders reject new bailout request
The moment a Queen's Guard soldier lost it and drew his gun at annoying tourist
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
Greece crisis: The wider lesson is that it’s time to abandon this failed experiment in currencies
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
They are neither a 'state' nor 'Islamic': Why we shouldn't call them Isis, Isil or IS
Tunisia beach attack: How can British Muslims respond to the latest outrages?
iJobs Money & Business
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...
£22500 - £27000 per annum + OTE £45K: SThree: Since our inception in 1986, STh...