Court orders seizure of East Star Construct property

Addirect Finance Company, a member of the Empire Holdings Group, has secured a court order to seize and sell properties belonging to East Star Construct Limited and two of its directors, to defray debts owed the company totalling GH¢120 million.

The company, in furtherance of the court's ruling on June 2, 2023, posted notices of attachment on the premises of East Star Construct Limited's estate at East Legon.

Per the court's ruling, Addirect Finance Company can go ahead with the process of valuation, reserve pricing and other preparations to sell the property of East Star Construct Limited.

East Star Construct Limited led by two of its directors, Kojo Opoku and John Mends, secured a loan of $8 million from Addirect Finance Company in 2019 for the construction of affordable housing units.

The loan was to be repaid in six months.

The loan was accordingly granted but at the expiration of the sixth month, repayment had neither been made by East Star Construct Limited nor its guarantor, and after a number of prodding, Addirect initiated a court action against the institution and the two directors of East Star to retrieve the money.

After a prolonged legal battle, the court ruled in favour of Addirect Finance Company Limited. East Star appealed the ruling but the case was thrown out.