Investments firm Cytonn has distanced itself from reports that it is seeking dissolution following an advertisement that was placed on a local daily.
Cytonn pointed out that the ad was placed by ‘malicious’ individuals who purported to be pursuing the liquidation of the Cytonn Investments Management Limited (CIMP).
In a statement Cytonn clarified that the said persons do not have any contracts with CIMP which is the group company that they sought to dissolve but rather their contracts are with Cytonn High Yield Solutions, CHYS, which primarily invests in real estate and governed by an Advisory Board of Investors of the Fund.
“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.
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.
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.
“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.”
“All our funds remain operational and should you have any queries, we shall be hosting a product update session from Wednesday 9th Dec till Friday 11th 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.
“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.
Loan restructuring is common in this Covid environment and this is consistent with the moratoriums that banks are giving real estate developments.
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