Explainer: Why Cheddar’s Partner Azad Cola Has Taken Over No.1 Oxford Street Hotel In Osu
- Cola Holdings Limited secured a High Court order granting its Receiver police assistance to take control of the Osu hotel linked to Nana Kwame Bediako
- The dispute centres on an alleged debt Cola Holdings claims it settled on behalf of Kensington Residential Partners 1 Limited, the company behind the hotel
- Cheddar has disputed personal liability for the debt while KRP1 has filed an appeal and applied for interim relief pending the court's determination
The No.1 Oxford Street Hotel in Osu, Accra, has become the subject of a legal battle after Cola Holdings Limited moved to seize control of the luxury property associated with entrepreneur Nana Kwame Bediako, widely known as Cheddar.
Cola Holdings, owned by businessman Azad Cola, obtained a High Court order authorising its appointed Receiver, Nii Amanor Dodoo, to take possession of the hotel with police assistance.
Source: Facebook
In a report by Graphic Online, the company stated that earlier peaceful attempts to gain entry to the property had been unsuccessful.
The debt at the centre of the dispute
The legal conflict traces back to an outstanding loan that Kensington Residential Partners 1 Limited (KRP1), the company behind the hotel, owed to the International Finance Corporation (IFC).
Cheddar serves as a director of KRP1. Cola Holdings claims it settled that loan on KRP1's behalf and subsequently moved to recover the funds from the company by enforcing its security interest over the hotel property.
The precise amount involved and the terms under which Cola Holdings settled the IFC obligation have not been made public.
Cheddar contests the claims
Nana Kwame Bediako has pushed back against Cola Holdings' position, arguing that he bears no personal responsibility for the debt in question.
He has also challenged the basis on which Cola Holdings chose to settle the loan and then proceed with enforcement action against the hotel.
KRP1, for its part, has filed an appeal against the High Court ruling and simultaneously applied for interim relief to pause enforcement while the appellate process unfolds.
The case is therefore expected to remain before the courts for some time as both sides continue to press their respective legal arguments.
Inside Cheddar's luxury Osu hotel
Meanwhile, YEN.com.gh reported that Cheddar's No. 1 Oxford Street Hotel featured lavish suites, designer furniture, marble floors and breathtaking Accra skyline views..
No. 1 Oxford Street Hotel was reportedly worth over US$100 million, making it one of Ghana's most expensive luxury developments.
Cheddar could lose one of his biggest investments if the court-ordered receivership is upheld despite the hotel's pending appeal.
Source: YEN.com.gh
