J&P Over­seas goes un­der the ham­mer

Financial Mirror (Cyprus) - - PROPERTY -

J&P Over­seas sub­sidiaries as well as all ac­tive projects are go­ing un­der the ham­mer as the liq­uida­tors, Al­varez & Marsal, of the high pro­file Cypriot con­struc­tion firm is look­ing for buy­ers.

Af­ter the com­pany en­tered the liq­ui­da­tion process, the ad­min­is­tra­tor has started pro­ce­dures for the dis­posal of all as­sets and, ac­cord­ing to re­ports, this will be done through a sep­a­rate sale of all the sub­sidiaries and projects un­der de­vel­op­ment.

The com­pany has sub­sidiaries in Saudi Ara­bia, United King­dom, United Arab Emi­rates, and Qatar, but also has di­rect pres­ence in other coun­tries such as Libya, Egypt and Jor­dan.

Be­fore go­ing into liq­ui­da­tion, the com­pany dis­posed of its stake in Queen Alia Air­port in Am­man, which was ex­pected to gen­er­ate more than USD 100 mln in rev­enue.

The pro­ce­dure ex­cludes the Cypriot J&P Group and its Greek arm J&P Avax which are sep­a­rate en­ti­ties and are not in fi­nan­cial trou­ble.

Re­port­edly, Al­varez & Marsal have given a three month pe­riod for in­ter­ested par­ties to go through the com­pa­nies’ as­sets and sub­mit an of­fer.

As with other wind­ing-up pro­ce­dures, rev­enues from sales are to ini­tially cover the fee of the liq­uida­tors, then money owed to cred­i­tors, with the largest share of the take go­ing to the banks.

It is es­ti­mated that the com­pany will not be able to pay out wages and other ben­e­fits owed to the com­pany’s per­son­nel.

The gov­ern­ment is mak­ing ar­range­ments to bring back some 200 Cypriot em­ploy­ees of the now de­funct com­pany who are stranded in Saudi Ara­bia.

J&P Over­seas was shut down with the ac­cu­mu­lat­ing dam­ages of around USD 750 mln.

The prob­lems at J&P Over­seas emerged ear­lier this year and cul­mi­nated last month with the com­pany go­ing into liq­ui­da­tion, af­ter banks re­jected its re­struc­tur­ing pro­posal.


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