Cytonn Investments has placed two of its insolvent real estate funds under administration.
The company’s Chief Executive Officer Edwin Dande initiated the process which will see Cytonn High Yield Solution (CYHS) fund and Cytonn Project Notes (CPN) placed under the watch of a court-appointed administrator.
Subsequently, the High Court Commercial and Tax Division has appointed Kerato Marima, a licensed insolvent practitioner as the administrator of the property of Cytonn High Yeilds Solutions LLP ahead of further court directions to be issued on November 24.
Cytonn is expected to serve all its creditors covered in the two insolvent real-estate funds with the new order ahead of the mention next month.
By putting the insolvent funds under administration, Cytonn is set to keep its aggrieved creditors off its back preventing scenarios such as auctions and attachments to its assets with the current insolvency law allowing companies to remain a going concern while in operations.
Effectively, the administration process serves as a moratorium which blocks any of Cytonn’s aggrieved creditors from applying to wind up the company.
The court-appointed administrator will meanwhile attempt to rescue investments in the two funds and assure the best outcome to aggrieved investors.
“First administration provides an enabling environment for restructuring under a competent administrator. Second, it gives a moratorium of any ongoing collection efforts so that all investors get to be treated equally,” said Cytonn Group CEO Edwin Dande.