Cytonn Terms Ad Seeking Liquidation As Malicious

Cytonn Investments has termed malicious an ad that appeared on the Daily Nation newspaper of individuals who purported to be pursuing the liquidation of the Cytonn Investments Management Limited.

“We take note of an advertisement in the classifieds section of the Nation newspaper purporting to pursue the liquidation of Cytonn Investments Management Limited, CIMP,” said Cytonn in a statement on Friday morning.

Cytonn management says the advertisement is malicious as CIMP has no contract with the claimant, and that there is no windup petition coming up for hearing and CIMP shall seek to absolve itself.

“All our funds remain operational and should you have any queries, we shall be hosting a product update session from Wednesday 9^th Dec till Friday 11^th Dec at 11.00 AM and 2:00 PM daily to allow clients and stakeholders to engage with management. You can dial in at https://cytonn.com/productsupdates,” said Cytonn’s CEO Mr. Edwin Dande.

The company says that the purported petition was maliciously advertised in defiance of a court order and falsely claimed it is coming for a hearing on 21st January 2020.

“What is coming is a hearing of our application to have it struck out and we are confident it shall be struck out,” said the seemingly annoyed Dande.

According to Cytonn, the complainant has no contract with CIMP which is the group company, but Cytonn High Yield Solutions, CHYS, which primarily invests in real estate and governed by an Advisory Board of Investors of the Fund.

“The Investment Manager in consultation with the Advisory Board obtained approval to restructure the loan book, which has been accepted by 98 percent of investors and is binding to all investors.”

Loan restructuring is common in this Covid environment and this is consistent with the moratoriums that banks are giving real estate developments.