High Court judge Alfred Mabeya has ordered Cytonn High Yield Solution (CHYS) administrator Kereto Marima to attend a court mention on his ouster.
In a directive seen by The Sharp Daily, the court set the mention date for December 7, 2022, ordering Marima to attend without fail.
“Take notice that the above mentioned matters are coming up for directions on Wednesday 7th December 2022 before Hon. Justice Alfred Mabeya at 08:30AM. (virtually). Further take notice that the administrator of the company (Mr Kereto Marima) is required to be in attendance virtually without fail,” the court ordered.
Mr Marima was appointed as an administrator to the company in October 2021, as part of ongoing efforts to turn around their performance after the funds experienced liquidity strains at the onset of the Covid-19 pandemic.
There has been a push and pull between two factions of investors, with a few investors taking legal steps that would essentially put them ahead of the other investors in terms of recovery of investments. The investors wanted to liquidate the real estate funds in a bid to recover their investments.
However, the Board of CHYS investors resolved to put the fund under administration in 2021 to give room for the fund to restructure, recover, and return value to investors.
In April this year, some members of the CHYS and the Cytonn Private Notes (CPN) credit committee voted to have the court-appointed administrator Mr Kereto Marima removed and replaced by the Official Receiver.
The decision to have the administrator removed was reached during an investors’ meeting held on April 13, 2022, leading to the court case. The investors also voted to have the process of tracing financial flows started and enforcement of corporate guarantee.
The Sharp Daily understands that Mr Marima has applied for an extension of his tenure by 12 months. Ololua Estates, one of the largest investors in the fund, however has requested that the administrator be maintained but not for a period exceeding 3 months.
Mr Marima did not however comment on the matter when reached out by The Sharp Daily.
According to one of the investors opposing the move, Mr Michael Mutua Mwinzi, the administrator does not deserve an extension period, since he “did not work for the interest of the creditors/investors”.
“I wish to state that the Administrator does not deserve any additional time in office and I vehemently object to the Application to extension of the Administrator’s term. The Administrator’s conduct for the period in office has been questioned by the creditors and the creditors belief he has not been working for the best interests of the creditors but working in concert with the Fund Manager,” Mwinzi said in court documents.
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