Troubled investments firm Cytonn Investments has lost three additional properties to a receiver manager. The three properties are located at Kilimani in Nairobi.
This is after the High Court allowed the receiver manager to take over the properties in a ruling that was delivered on November 30.
In the ruling by Justice Alfred Mabeya, the court allowed the receiver manager to take over the properties that were linked to the Cytonn High Yields Solution (CHYS).
This was despite opposition from Cytonn Investments Partners (CIP) and a creditor who had told the court that the move would put regulated investors at risk.
Apart from these three properties, the High Court also allowed the receiver manager to take over 12.5 per cent shares equal to 250,000,000 ordinary shares in real estate firm Superior Homes Kenya that are currently held by Cytonn’s affiliate CIP 15 LLP.
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“Cytonn High Yields Solution (CHYS) despite opposition from Cytonn Investment Partners and another creditor who argued that regulated investors stood to suffer,” Justice Mabeya declared in his ruling.
The court further ruled that unless the amount advanced to the entities is paid to the receiver manager with interest according to the agreement between the CHYS and CIP 16 and 15, respectively, the receiver manager has the right to recover the same from the identified three properties for the benefit of the creditors.
In the court case, the receiver manager had argued that Cytonn’s affiliate CIP 16 LLP was holding the title deeds on behalf of creditors yet the court had allowed it to trace the properties for the benefit of the aggrieved investors.
“I find that in tracing the assets to the Special Purpose Vehicles (SPVs) aforesaid, the Official Receiver is well within his mandate as set out in the Insolvency Act,” Justice Mabeya ruled.
