Cytonn Investments has placed its investment funds, Cytonn High Yield Solutions (CHYS) and Cytonn Project Notes (CPN) under court-appointed administration as part of ongoing efforts to turn around their performance.
The application for administration of the two funds was filed by Cytonn Group CEO, Edwin Dande pursuant to a resolution by the Board of CHYS investors. Administration gives the funds the room to restructure, recover, and return value to investors.
“Following the onset of Covid-19, the funds experienced liquidity strains that were further aggravated by negative publicity and sustained regulatory attacks. In the circumstances, the board of investors of the funds concluded that administration was the best option to provide an enabling environment to restructure the funds and return value to investors,” Cytonn said in a statement.
Kerato Marima, a licensed insolvency practitioner has been appointed by the High Court Commercial and Tax Division as the administrator of the property of Cytonn High Yields Solutions LLP ahead of further court directions to be issued on November 24.
Speaking on the appointment, Mr. Dande, insisted that placing the two funds under administration would be beneficial for investors.
“This is in the best interest of investors for several reasons. First, placing the funds under administration administration provides an enabling environment for restructuring under a competent administrator. Second, it gives a moratorium on any ongoing collection efforts so that all investors get to be treated equally. It is going to be a difficult period but we shall accord the process all the support it needs to ensure that we come out of this as an even stronger brand and investor value is preserved. In any event, the assets remain safe, tangible and visible, but illiquid hence the need to restructure,” Dande concluded.