CYPRUS: J&P Overseas goes under the hammer

J&P Overseas subsidiaries as well as all active projects are going under the hammer as the liquidators, Alvarez & Marsal, of the 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 company 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.