Nairobi, Kenya Tuesday 10th January 2023 Some investors in Cytonn’s privately placed real estate funds, CHYS and CPN, requested the High Court not to extend the administration of the two funds, but instead transfer them to the Official Receiver for restructuring.
The court agreed not to extend the administration, transferred the two funds to the Official Receiver, but with an order to liquidate.
The court also issued a preservation order on real estate assets, some of which are financed by the two funds. This means the ownership of the preserved assets cannot be transferred pending the liquidation of the two real estate funds.
Given that CHYS/CPN investors, albeit a minority of them, requested the transfer of the two funds to the official receiver, the Principal Partner will not be challenging that conclusion unless we get written instructions from a majority of investors to challenge the liquidation order. We will fully cooperate with the official receiver in the liquidation of the two funds.
However, CHYS / CPN is just one of the investors and / or lenders to the underlying assets that have preservation orders, hence it is expected that the senior lenders and preferential creditors in the Special Purpose Vehicles, which hold the real estate assets, and are likely to be prejudiced by the preservation orders may challenge the orders. We will work with each stakeholder, including CHYS / CPN investors, to protect their rightful interest in each asset.
Most importantly, note that these liquidation orders are only to the extent of CHYS / CPN funds, it does not extend to other Cytonn Funds such as Cytonn Pension Funds, Cytonn Money Market Fund, Cytonn High Yield Fund, Cytonn Equity Fund and Cytonn Balanced Fund.
With regard to those who have bought units in our real estate projects, the contracts convey good title that we expect to be protected in the process, and in any event we shall vigorously defend their property rights.
You can still invest or withdraw anytime, 24 / 7 by just dialing *809# or downloading the Cytonn App.
Should you have any questions kindly email or contact any of the below, as appropriate:
Edwin H. Dande
Tel: 0710 907 139
Mobile: 0703 695 969
Mobile: 0704 597 107