This archive report was first published on 14 October 2021.
Published on October 14, 2021, Cytonn Investments has taken a significant step to address its financial challenges by placing two of its insolvent real estate funds under administration.
The move, initiated by Chief Executive Officer Edwin Dande, will see the Cytonn High Yield Solution (CYHS) fund and Cytonn Project Notes (CPN) placed under the watch of a court-appointed administrator.
On November 24, the High Court Commercial and Tax Division will issue further court directions regarding the administration of the property of Cytonn High Yeilds Solutions LLP.
As part of the process, Cytonn is expected to serve all its creditors covered in the two insolvent real-estate funds with the new order ahead of the mention next month.
By putting the insolvent funds under administration, Cytonn aims to prevent scenarios such as auctions and attachments to its assets, allowing the company to remain a going concern while in operations.
The administration process serves as a moratorium, blocking any of Cytonn's aggrieved creditors from applying to wind up the company.
The court-appointed administrator, Kerato Marima, will attempt to rescue investments in the two funds and assure the best outcome to aggrieved investors.
“First administration provides an enabling environment for restructuring under a competent administrator. Second, it gives a moratorium of any ongoing collection efforts so that all investors get to be treated equally,” said Cytonn Group CEO Edwin Dande.
