Mahtani saves over 300 Zambian jobs through Take-over of Radisson Hotel: read more on the court process that led to the take-over

Filed under: Exclusives |

laIn the light of the takeover of Radisson Blu Hotel by the Rajan Mahtani owned Finsbury Investments Limited, ZIN undertook an investigation with a view to bringing clarity to the issues around it. While usual malicious elements have taken turns to vilify Zambia’s leading businessman Rajan Mahtani over the takeover, our findings have explained and brought clarity to Finsbury Investment’s takeover of Radisson Hotel. Finsbury Investments Limited which happens to be one on the entities under the Mahtani Group of Companies recently took possession of Hotellier Limited’s Radisson Blu Hotel after a Lusaka high court judgement that sustained Hotellier’s US $ 40 million indebtedness to Finance Bank Zambia Limited. However after the said takeover, the usual anti-Mahtani elements opted to conveniently ignore the truth and instead went on to peddle malicious falsehoods regarding the development. Following a thorough investigation, the Zambian Intelligence News can exclusively reveal that the takeover of the Radisson Hotel located on Lusaka’s great east road followed a legal battle that came to a conclusion recently in the Lusaka High Court. Contrary to peddled innuendos and malicious media campaigns that have been brought to the fore, due process of the law was undertaken and followed and later culminated in the High Court’s May 7th ruling. The Court ruling unequivocally found Hotellier Limited liable to pay compound interest to Finance at its overdraft rate for money that Hotellier had borrowed towards construction of the Hotel. While the usual anti-Mahtani elements are not ready to tell the entire truth regarding the big picture perspective regarding the take-over of Radisson Blu by Finsbury Investments, ZIN has established much more insights regarding this development. For instance, while court documents reveal that the liabilities of Hotellier Limited amount to US$ 65 million and the assets are in the region of US$ 40 million. The implication of this financial position is simply that Mahtani took up huge liabilities and in so doing guaranteeing business continuity which inevitably brought certainty to the welfare of over 300 direct employees which the Hotel employs. Another aspect of the big picture perspective regarding the takeover of the Hotel is that in spite of the material fact that Mahtani has taken over huge liabilities, the development goes into consolidating the increasing ownership of investments by local businesses. The foregoing position is anchored on the finding that if the Hotel was left all alone with all the liabilities represented in the US $ 65 million amount, there is high likelihood that the foreign creditors would have taken charge of the assets and brought uncertainty to the lives of the workers.