Cambria Africa, a closed-ended fund listed in London and focused on Zimbabwe, is suing its former manager Lonrho for around $10 million (£5.8 million).
Lonrho, the conglomerate built by Roland ‘Tiny’ Rowland, was a major shareholder in Cambria Africa and managed the fund until February 2012.
Cambria Africa had previously settled a dispute with Lonrho over ‘alleged fraudulent misrepresentations’ in July last year for $2.7 million (£1.6 million).
The fund is now seeking to rescind that agreement, and is pursuing additional claims regarding three aircraft previously owned by Cambria which were leased to former subsidiaries of Lonrho.
Cambria stated: ‘These alleged claims include (i) fraudulent misrepresentations by Lonrho to Cambria relating to the purchase of one of the aircraft by Cambria from Lonrho; (ii) breaches of contract, negligence and breaches of fiduciary duty resulting in (a) unpaid maintenance reserve and lease charges; (b) diversion of insurance claims proceeds by Lonrho to one of its subsidiaries which were properly due to Cambria; and, (c) loss of value of the aircraft due to the poor condition of the aircraft when they were repossessed by Cambria, including, but not limited to, missing engines, missing avionics, and missing propellers.’
Lonrho was taken private in May last year, after being bought by two Swiss investors. Its current business interests include infrastructure, agriculture and hotel management.