The high Court has issued an order for Cytonn Investments to pay Sh14 billion to its investors.
The struggling real estate firm will not have to be liquidated to recover the funds to pay some 4000 clients who sued.
As per Business Daily, out of the 4000 clients, 3,000 members of the public sank in excess of Sh11 billion through Cytonn High Yield Solutions (CHYS).
886 others invested more than Sh4 billion in the Cytonn Real Estate Project Notes (CPN). T
In the liquidation order, Justice Alfred Mabeya also ruled that assets and real estate projects belonging to the firm such as the Alma, Applewood/Miotoni, Riverrun, Ridge and Taraji must be preserved until the liquidation is concluded.
In the ruling, the court declined to extend the administration of Cytonn.
This is after the administrator told the court that Cytonn could not be turned around as it had no credible funding source.
Cytonn had in 2021 gone to court asking to be placed under administration instead of liquidation.
“It is not in dispute that Cytonn Real Estate Project Notes (CPN) is seriously ailing and the Creditors have suffered and continue to suffer as CPN is unable to pay what it owes them,” Justice Mabeya ruled.
“The Court is therefore of the view that the viable option would be to liquidate the company and to appoint a Liquidator who will have the interests of the Creditors at heart.”
Covering news about Eastlands especially Umoja, Kayole and Buruburu estates