Nungu Diamonds faces liquidation

South Africa’s Nungu Diamonds is facing possible liquidation after a breach of the credit agreement of R1.6 million it had with financers Anglo American Zimele, according to local media reports.
News24 reports that several calls for repayment were allegedly ignored, which forced the financiers of the luxury brand to summon its owner, Kealeboga Pule, to appear at the Johannesburg High Court for adjudication.
“The first defendant undertook to make payment in monthly instalments to the plaintiff in the sum of R135 500 before the seventh day of each month,” read the court papers seen by the publication.
“In the event of the first defendant failing to make one payment, the full amount outstanding would become due and payable to the plaintiff.” 
Nungu Diamonds is said to have made the last payment for the agreement in April.
Meanwhile, Pule said funding from Anglo-American Zimele was extended as part of a programme aimed at promoting diamond beneficiation in South Africa.
He queried the figure cited in the claim.
“The initial loan amount was R3 million, and Nungu Diamonds has successfully paid back an amount of R2 471 991 to date. R475 000 was paid during the course of this week ...,” said Pule.
“The R1.3 million stated in the summons I received is incorrect, and is a reflection of premature action on the part of the lawyers representing Anglo-American Zimele, which I am certain is a matter we can discuss and put to bed without wasting our courts’ time.”
Nungu Diamonds is one of five companies that were chosen to be part of a De Beers diamond beneficiation project that launched in 2016.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished