Oxford No. 1 Hotel has firmly denied reports that a receiver has taken over its operations. Management states the hotel remains under the control of Kensington Residential Partners 1 Limited (KRP1 Ltd). This declaration follows a High Court order on July 21, 2026, which appointed a receiver to manage the property.
The hotel's management urged staff, customers, and the public to disregard claims of a takeover. KRP1 Ltd, jointly owned by Nana Kwame Bediako (Cheddar) and Azad Cola, developed and manages the hotel. The facility opened in December 2019, but the COVID-19 pandemic significantly impacted its ability to service a loan from the International Finance Corporation (IFC).
This situation highlights the financial vulnerabilities many businesses faced during the pandemic. The tourism and hospitality sectors in Ghana, like Oxford No. 1 Hotel, experienced severe disruptions. This often led to difficulties in meeting financial obligations, impacting loan repayments and operational stability.
KRP1 Ltd alleges that while it was negotiating loan restructuring with the IFC, Mr. Cola, through Cola Holdings Ltd, claimed to have personally settled the outstanding debt. Cola Holdings Ltd then demanded reimbursement from KRP1 Ltd. KRP1 Ltd argues that Mr. Cola, as a director, had a fiduciary duty to obtain company approval before such an action. Furthermore, KRP1 Ltd states that neither Mr. Cola nor Cola Holdings Ltd has provided proof of the IFC loan's full repayment.
The legal dispute intensified with the High Court's receivership order. KRP1 Ltd maintains that this order does not take effect until seven days after it was granted. The company has instructed its lawyers to appeal the decision. They also plan to seek an injunction to prevent Cola Holdings Ltd and the appointed receiver from taking possession of the hotel. This move aims to maintain the status quo until the appeal is resolved.
This case reflects broader concerns about corporate governance and shareholder disputes in Ghana's business landscape. Such legal battles can deter potential investors and create uncertainty in the market. The outcome will set a precedent for how similar disputes are resolved, especially concerning director responsibilities and debt repayment claims.
KRP1 Ltd also noted that two previous applications by Cola Holdings Ltd were dismissed by the High Court. These earlier dismissals are currently under appeal. Management further alleges that Cola Holdings Ltd is pursuing separate legal action against Nana Kwame Bediako personally to recover the same amount it claims to have paid to the IFC. This simultaneous pursuit of repayment from both the company and an individual director raises questions about attempting to recover the same debt twice.
The hotel has assured customers and stakeholders that operations remain uninterrupted. They encourage the public to await the outcome of the ongoing legal proceedings. The resolution of this dispute will be closely watched by the business community, particularly those involved in hospitality and real estate development. It underscores the importance of clear financial agreements and robust legal frameworks for resolving corporate disagreements.