A group of 38 creditors has filed a lawsuit in the Commercial Division of the High Court in Accra against Su Casa Properties Ltd.
The creditors are seeking the appointment of an Administrator to manage the company’s affairs, citing financial distress. This action is in line with the Corporate Restructuring and Insolvency Act, 2020 (Act 1015), aimed at protecting the creditors’ interests and ensuring a fair settlement of liabilities.
The creditors include individuals from Ghana, the United States, Canada, the United Kingdom, and Germany who have collectively invested over $1 million USD and GHS 3.3 million in off-plan residential units promised by Su Casa Properties Ltd.
According to the group, despite contractual agreements and repeated assurances, Su Casa has failed to deliver the units within the stipulated timeframe of 16 weeks. The company has also refused to honor refund requests.
Key Claims in the Lawsuit
- Failure to Deliver: Su Casa Properties Ltd. has not constructed the promised residential units within the 16-week timeframe specified in the Sale and Purchase Agreements (SPAs), leaving many plaintiffs without their homes.
- Substandard Deliveries: The few units that were delivered faced significant delays and were substandard, requiring extensive repairs that Su Casa failed to undertake as promised.
- Fraudulent Practices: The company engaged in deceptive marketing practices, misrepresenting its capacity to deliver the residential units while lacking the financial stability to fulfill its commitments.
- Breach of Contract: Su Casa failed to transfer the legal title to the land on which the units were constructed, putting plaintiffs in precarious legal situations.
- Financial Mismanagement: The company 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 indicated that he hopes the court will expedite the hearing in order for an Administrator to be appointed to handle the company’s insolvent challenges.
“This has become urgent in light of the fact that Su Casa has taken so many investors’ contributions, promised to build properties within 16 weeks and it’s nearly two years now and none of them has seen anything happen. A lot of them are concerned that Su Casa has become insolvent and are asking the court to look into that. One of the things that Ghana has tried to do is to transition the country from what happened with Gold Coast Security, Menzgold that we need to be more proactive in protecting investors monies and funds,” he noted.
The appointment of an Administrator aims to ensure a more advantageous realization of Su Casa’s assets and a fair settlement of liabilities. This move is intended to protect the creditors’ interests and bring a structured resolution to the company’s financial issues.
The case has been adjourned to July 16.
By Laud Adu-Asare
