Monday, May 27, 2024

Cytonn to be liquidated to recover Sh. 14 billion investors’ money

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Investment projects owned by real estate firm Cytonn Investments are set to be liquidated. This follows an order by the High Court that was issued to help investors recover Sh. 14 billion.

The Sh. 14 billion money belongs to some 4,000 investors who put their money in the firm as an investment.

Out of these investors, 3,000 members of the public sank in excess of Sh 11 billion through Cytonn High Yield Solutions (CHYS). 886 others invested more than Sh. 4 billion in the Cytonn Real Estate Project Notes (CPN).

The liquidation was ordered by the High Court’s Justice Alfred Mabeya. In the liquidation order, Justice Mabeya also ruled that assets and real estate projects belonging to the firm such as the Alma, Applewood/Miotoni, Riverrun, Ridge and Taraji must be preserved until the liquidation is concluded.

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In the ruling, the court decline to extent the administration of Cytonn. This is after the administrator told the court that Cytonn could not be turned around as it had no credible funding source.

Cytonn had in 2021 gone to court asking to be placed under administration instead of liquidation.

“It is not in dispute that Cytonn Real Estate Project Notes (CPN) is seriously ailing and the Creditors have suffered and continue to suffer as CPN is unable to pay what it owes them,” Justice Mabeya ruled.

“The Court is therefore of the view that the viable option would be to liquidate the company and to appoint a Liquidator who will have the interests of the Creditors at heart.”

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