Faqs On Chys & Cpn Loan Restructuring Communication
The renegotiation fee shall be for those clients who wish to enter into a standstill agreement for a period of two years. The client shall receive 1% of the investment amount
It depends and this can be negotiated to be either a fee payable or be added as part of the interest
The Unit Price shall be the current market price’
In the first option- the twelve (12) month extension, yes, but under the partial/recapitalization interest amounts. The stand-still agreement means that no payments shall be made within the two years. For CPN clients, interest payment cycles remain with the earliest being quarterly remittance.
Dependent on inflows, there shall be a partial interest payment or recapitalization of interest. The interest amounts payable for Clients shall take the whole working month.
No, they shall get the one-off renegotiation fee
Yes, this can be negotiated
Yes, as these affect all the funds that were in the firm as at March 11th, 2020
We would hope that the economy improves sooner rather than later, and as we care about our clients’ financial well-being, the earlier we return to a better liquidity position, the sooner we can look at making funds available to clients. We shall however not revert to an investment initial maturity date.
It is in line with the World Health Organisation (WHO) research on the period of finding a cure or vaccine to Covid-19. We are projecting that within this period there will be a return to normalcy and therefore the challenges we are facing on the economic front will have been sorted out.
Yes, it is possible for a client to capitalize on their interest
No, it is a new extension beginning from the date of your current maturity
The extension would still apply based on the current circumstances of the Fund
Yes, the process is open to all projects and the sales process shall be followed. Please note that the units shall be offered at their current sale prices
This is not possible as it shall lower the efforts of the Fund to getting back to its desired liquidity level.
The contract allows that in the instance of Force Majeure, the Principal Partner can recommend and execute a 6 months extension. We executed a 3-month extension and as it comes to an end in June 2020, we noted that the economic environment had not changed significantly and under the guidance of the Board and in line with the WHO guidelines, have recommended a 12months extension as part of the options available to Investment Partners and which provision of options is the next steps after an extension as provided under the Force Majeure clause. The other 2 options are the conversion of investment funds to Real Estate and as well a 2-year standstill agreement.
From June 2020 accrued interest amount and which is to be paid out from July 2020. This shall last throughout the period of the extension. The capitalized interest amount is 50% of the current interest amount.
The COVID-19 pandemic started more as a global health crisis and has now triggered severe economic recessions as the impact of the pandemic continues to be significant. We have been analyzing the impact of the pandemic on various sectors, where we looked at the Potential Effects of COVID-19 on Money Market Funds. We then wrote about the Impact of COVID-19 on Kenya’s Real Estate Sector, focussing on the impact of the pandemic in the residential, office, retail, and, hospitality sectors and then the Impact of COVID-19 has had on Real Estate Funds. Please read to understand more.