GCB to decide fate of Greenland Hotel May 2

April 29, 2008 (Page 3)

THE management of Ghana Commercial Bank (GCB) will, by Friday, May 2, 2008, decide whether or not to open Greenland Hotel Limited which was closed down as a result of its GH¢1.1 million indebtedness to the bank.
Counsel for the bank, Mrs Abena Ntrakwa-Mensah, prayed the Commercial Court in Accra to give her up to Friday, May 2, 2008 to enable her to consult with her client on whether or not it was willing to re-open the hotel while the hotel made arrangements to pay its debt.
This latest development was necessitated by the court’s decision to allow parties in the matter to negotiate, instead of relying on technicalities, following a motion by the management of the hotel praying the court to order the re-opening of the hotel.
The trial judge, Mr Justice S. Marful-Sau, an Appeal Court judge with additional responsibility as a High Court judge, said the court processes could go on while the management of the bank allowed the hotel to operate.
He said there was no need for the hotel to be closed down because the bank could go ahead and sell it while it (hotel) still operated.
Mr Justice Marful-Sau said the bank could go ahead and put a representative at the hotel to collect money on its behalf while the hotel operated.
He said the livelihood of workers who also had dependants hung on the operations of the hotel and further urged the hotel to make efforts to pay back its loan.
He urged counsel to communicate the court’s views to the management of the bank for it to decide on the next line of action to take.
Mrs Ntrakwa-Mensah then informed the court that she needed a short adjournment to communicate the court’s views to her client.
She also urged the hotel to make efforts to pay its debt, adding that a letter from the hotel’s solicitors did not specify when it was going to start making payment.
Counsel for the hotel, Mr Godfred Yeboah Dame, said the hotel was making huge losses as a result of the closure.
He gave the assurance that it would make efforts to pay its debt.
The Chief Executive Officer of the hotel, Dr Alexander Eyiah, is praying the court for an order setting aside the execution on April 16, 2008 of the judgement entered in default of appearance and for a further order prohibiting the registrar of the court from sealing off, closing down or in any way interfering with the defendant/applicant’s use or possession of Greenland Hotel Limited until a sale by public auction, if any, has been properly carried out on the orders of the court.
The hotel was closed down as a result of the inability of its management to repay the remaining GH¢1.1 million which is part of a loan it took from the GCB.
The GCB took action against the hotel on October 8, 2007 and a judgement dated October 31, 2007 was entered against it in default of appearance.