cheddar

High Court Authorizes Police to Take Possession of Cheddar's No.1 Oxford Street Hotel

Kensington Residential Partners 1 Ltd, the company behind the No. 1 Oxford Street Hotel project, reportedly borrowed money from Cola Holdings Limited, a UK-based lender.
The loan became the subject of a US$14.9 million judgment debt after the company failed to meet its obligations.
The No. 1 Oxford Street Hotel had been used as collateral (security) for the loan. After the debt remained unpaid, Cola Holdings sought to enforce its security interest by appointing a Receiver to take control of the property.
The Receiver told the High Court that attempts to peacefully take possession of the hotel had been unsuccessful, so the court authorized the police to provide assistance in enforcing the order.

Explained

The High Court in Accra has granted permission for the Ghana Police Service to assist a court-appointed Receiver in taking possession of the luxury No. 1 Oxford Street Hotel in Osu, after a legal dispute over an unpaid multimillion-dollar debt.

The order stems from a US$14.9 million judgment debt involving Kensington Residential Partners 1 Limited and Cola Holdings Limited, a UK-based company that financed the project. According to court documents, the hotel was pledged as security for the loan, prompting the lender to enforce its rights after the debt remained unsettled.

Justice Samuel Faraday Johnson of the Commercial Division of the High Court approved the application after the Receiver argued that earlier attempts to assume control of the property without police assistance had been unsuccessful. The court ruled that police support was necessary to enable the Receiver to carry out the lawful execution of the order.

Kensington Residential Partners 1 Limited opposed the application, arguing that the Receiver should not be allowed to take over the property. However, the court dismissed the objections, holding that Cola Holdings had a validly registered security interest over the hotel under Ghana's Borrowers and Lenders Act, 2020 (Act 1052).

The judge clarified that the ruling only authorizes police assistance to help the Receiver gain possession of the property. It does not determine the final ownership of the hotel or resolve the broader legal issues surrounding the debt, which may still be subject to further court proceedings.

Businessman and New Force leader Nana Kwame Bediako, popularly known as Cheddar, has consistently maintained that the debt is the responsibility of the corporate entity behind the hotel project and not a personal liability. He has also indicated his intention to challenge the enforcement of the foreign judgment through the appropriate legal channels.

The latest ruling marks another significant development in the high-profile dispute, with the Receiver now expected to move forward with taking control of the hotel with the support of law enforcement.

Editorial Notice: This information was first shared by @withalvin (on X).