Cheddar's No. 1 Oxford Street Hotel Appeals Court Order, Insists Facility Remains Under Its Control

The management of No. 1 Oxford Street Hotel has filed an appeal against a High Court order that granted police assistance to a court-appointed receiver to take possession of the property, insisting the hotel remains under the control of its directors and is operating normally.

In a statement issued on Thursday, Kensington Residential Partners 1 Limited (KRP1), the company that owns and manages the hotel, said media reports suggesting the property had already been handed over to a receiver appointed by Cola Holdings Limited created a false impression.

The statement follows a ruling by the Commercial Division of the High Court on 21 July, which authorised police to assist receiver Nii Amanor Dodoo in taking possession of the hotel after Cola Holdings said it had been unable to do so peacefully.

The court held that Cola Holdings had properly registered its security interest over the property and was entitled under the Borrowers and Lenders Act to seek police assistance.

KRP1, whose directors are businessman Nana Kwame Bediako, popularly known as Cheddar, and Azad Cola, said the police assistance order does not take effect until seven days after it was granted and that period had not expired when it filed its appeal.

The company said it had instructed its lawyers to challenge the decision and had also filed applications seeking to prevent Cola Holdings and the receiver from taking possession of the hotel while the appeal is pending.

According to KRP1, the dispute stems from financing obtained from the International Finance Corporation (IFC) to develop the hotel. The company said Azad Cola later claimed that his company, Cola Holdings, had personally settled the IFC loan and demanded reimbursement from KRP1.

However, KRP1 said neither Azad Cola nor Cola Holdings had produced evidence that the IFC facility had been repaid.

The company also noted that two previous applications filed by Cola Holdings had been dismissed by the High Court and that those decisions are also under appeal.

It further claimed that Cola Holdings is pursuing separate legal proceedings against Nana Kwame Bediako personally to recover the same amount it says it paid to IFC, while simultaneously seeking the money from KRP1.

“Management does not believe the courts of Ghana will permit such unjust enrichment,” the statement said.

KRP1 urged the public to await the outcome of the appeal and related court applications rather than draw conclusions from ongoing litigation.

It added that “Oxford No. 1 Hotel remains open for business.”