The court has ordered for the liquidation of two Cytonn Investments arms to recover over Ksh14 billion owed to 4,000 investors.
The two arms, Cytonn High Yield Solutions and Cytonn Real Estate Project Notes, have been under administration for the last couple of years after the company failed to pay returns to the investors.
According to Court’s findings, 3,000 investors had sunk Ksh11 billion in Cytonn High Yield Solutions (CHYS) and 886 others over Ksh4 billion in the Cytonn Real Estate Project Notes (CPN).
High Court Judge Justice Alfred Mabeya however ordered for the preservation of the Alma, Applewood/Miotoni, Riverrun, Ridge and Taraji, projects owned by Cytonn Investments.
“There is evidence on record that the monies paid by the creditors of CHYS and CPN was sank in these projects and all that CHYS and CPN has in possession are mere pieces of paper called Loan Notes. There are no securities held by way of charges for what the investors sank in CHYS and CPN, who in turn sunk the same into these projects,” Justice Mabeya ruled.
According to court-appointed administrator Kereto Marima, there is no enough assets to settle the liabilities, since all he has in his possession are loan notes that he has been unable to enforce.
“The Administration of Cytonn High Yield Solutions (CHYS) and Cytonn Real Estate Project Notes (CPN) is hereby terminated and is placed under liquidation,” said Justice Mabeya.
“The administrator to forthwith surrender to the official receiver all the properties and belongings of CHYS and CPN as well as all the administration documents,” said Justice Mabeya.
Read: High Court Extends Cytonn High Yield Solution Administrative Orders
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