GCB issues ultimatum - Pay us GHCedi 550,000 - to secure re-opening of Greenland Hotel

May 3, 2008 (Lead Story)

GHANA Commercial Bank (GCB) is demanding GH¢550,000 from the management of Greenland Hotel Limited by May 9, 2008 as a condition for the re-opening of the hotel.
The hotel was closed down as a result of the inability of its management to repay the remaining GH¢1.1 million which is the accrued interest on a GH¢200,000 loan it took from the bank.
The latest decision of the bank was communicated to the Commercial Court in Accra yesterday in the case in which the management of the hotel is praying for an order to set aside the execution of a court decision that culminated in the closure of the hotel.
That followed a call by the court, presided over by Mr Justice S. Marful-Sau, on both parties in the matter to negotiate and come to agreeable terms in order for the hotel to be re-opened.
However, the management of the hotel said it could only pay the amount, which represents 50 per cent of the outstanding amount, by the end of June this year and pay the balance by December 31.
Mrs Abena Ntrakwa-Mensah, counsel for GCB, told the court at its sitting yesterday that the management of the bank had agreed to open the hotel at exactly 2.00 p.m. on May 9, 2008 if the hotel was able to pay the proposed amount.
But counsel for the hotel, Mr Godfred Yeboah Dame, disagreed with the request and prayed the court to order the immediate re-opening of the hotel.
The court, however, declined the request, with the reason that justice must be seen to be done to both sides.
Mrs Ntrakwa-Mensah then informed the court that she would confer with the bank for it to decide whether or not to open the hotel as suggested by the court.
The court was of the view that parties in the matter should negotiate, instead of relying on technicalities, following a motion by the management of the hotel praying the court to order its re-opening.
Mr Dame said the bank’s decision was severe, considering the fact that the hotel was making huge losses following its continued closure.
He said it would be difficult for his client to come up with GH¢550,000 within a week and gave the assurance that the hotel was seriously making efforts to pay back the loan.
Buttressing his point, counsel said the owner of the hotel, the late Nana Kwame Eyiah, had a property at the Airport Residential Area in Accra which should have been sold to pay off the loan but there had been a delay because the sale price of the property was being contested at another High Court.
He said the hotel was making huge losses as a result of the closure and gave the assurance that it would make efforts to pay its debt.
For her part, Mrs Ntrakwa-Mensah stated that the bank was willing to re-open the hotel provided it made efforts to pay a substantial amount to the bank.
She said the matter had gone beyond management level and was currently before the Board of Directors of the bank.
The court urged the hotel to demonstrate that it was willing and capable of paying back the loan.
It said it had taken cognisance of the hotel’s plight but emphasised that justice must be seen to be done to both parties in the matter.
The case was adjourned to Wednesday, May 7, 2008 to enable Mrs Ntrakwa-Mensah to confer with the bank.
The GCB took action against the hotel on October 8, 2007 and a judgement dated October 31, 2007 was entered against the hotel in default of appearance.