A group of 38 creditors has taken legal action against Su Casa Properties Ltd. in the Commercial Division of the High Court in Accra, seeking the appointment of an Administrator to manage the company’s affairs.
The creditors, comprising individuals from Ghana, the United States, Canada, the United Kingdom, and Germany, have collectively invested over $1 million USD and GHS 3.3 million in off-plan residential units promised by Su Casa Properties Ltd.
Despite contractual agreements and repeated assurances, Su Casa has failed to deliver the units within the stipulated timeframe of 16 weeks, prompting the creditors to seek legal recourse. The lawsuit alleges that Su Casa has engaged in fraudulent practices, misrepresenting its capacity to deliver the residential units while lacking the financial stability to fulfill its commitments.
The company has also failed to transfer the legal title to the land on which the units were constructed, putting plaintiffs in precarious legal situations. Furthermore, Su Casa has demonstrated financial distress, owing substantial sums to multiple creditors and employees, further hindering its ability to meet contractual obligations.
Lead counsel for the group, Oliver Barker Vormawor, has expressed hope that the court will expedite the hearing to appoint an Administrator to handle the company’s insolvent challenges. The appointment of an Administrator aims to ensure a more advantageous realization of Su Casa’s assets and a fair settlement of liabilities, protecting the creditors’ interests and bringing a structured resolution to the company’s financial issues.
The case has been adjourned to July 16, and the creditors await the court’s decision with bated breath, hoping for a swift and just resolution to their plight. This legal action is seen as a test case for Ghana’s Corporate Restructuring and Insolvency Act, 2020 (Act 1015), aimed at protecting creditors’ interests and ensuring a fair settlement of liabilities in cases of financial distress.
