Nairobi, Kenya 6th January 2023. Earlier today, Hon. Mabeya allowed the creditors’ application seeking to lift the administration orders on CHYS / CPN, and consequently dismissed the application by the administrator to extend administration of these two funds. The court further appointed an official receiver, who shall take charge of the liquidation proceedings. The moratorium that previously existed, continues to remain in place, effectively any litigations or executions against the funds remain stayed.
CHYS/CPN funds were placed under administration in October 2021, and have been the subject of administration proceedings since. Some of the creditors in the two funds put in an application dated 19th May 2022 seeking to lift the administration orders, whilst the administrator put in an application seeking to extend the administration for a further one year, at the lapse of the first term.
As usual, CHYS/CPN funds are separate legal entities and as such, these actions do not affect the other products such as Cytonn Pensions, Cytonn Credit, Cytonn Money Market Fund, CMMF, or Cytonn High Yield Fund, CHYF.
This outcome is welcome, as it ends an administration process that was moving at too slow a pace and allows creditors to engage in a fresh and more institutionalized process.
The lesson here is that all stakeholders in an administration process – the fund, the administrator, creditors, and service providers - should always be aligned. Further, administration proceedings, under the control of an administrator, should be done efficiently, expeditiously and concluded to avoid such similar instances where the court intervenes through inviting appointment of an Official Receiver.
We shall constructively engage with the Official Receiver until the two funds CHYS / CPN are resolved for the benefit of the investors therein.
