What do you guys think about Jaypee Greens Wishtown - NOIDA? Is this a good time to buy? Is Wishtown a good investment?

Cheers! :)
Read more
Reply
8001 Replies
Sort by :Filter by :
  • Originally Posted by vivmits
    Certainly a bad news for Jaypee. However Liquidation shall come into picture only when Resolution is not found in 270 days, and we can hope a plan like debt restructuring/sale of assets/haircut on bank interest can be worked out . Company's day to day operations (Read construction at site) need not stop for all this period, but yes that will come under further stress.


    If the contractors have any sense, they will know they have little hope of getting any payments through now. Unless JP fronts up cash, which it is short of, work is likely to come to a grinding halt soon.

    270 days is not a grace period to continue things as they were. It is the maximum time that can be taken for the process to get to the liquidation stage. According to the code, a resolution plan is expected to be worked out within 180 days, with a possible extension of 90 days in special circumstances.

    If the bankruptcy adminstration decides within one week that liquidation is the only viable option, then the liquidation process will start immediately and not wait for 270, or even 180, days.
    CommentQuote
  • Some facts

    1. For some projects in wishtown like kalypso, pavilion customers make payment to JAL ( jaiprakash associates). Receipt of payment is from JAL.

    2. For lot of projects in wishtown like kasa, orchards etc customer make payment to JIL ( jaypee infratech)
    Receipt of payment is from JIL.

    3. Allotment letter of all projects in wishtown are on JAL letterhead, stamped by JAL and signed for JAL & JIL

    4. Wishtown Land was allotted to JAL.

    5. JAL had 70% stake in JIL

    6. JIL was formed as SPV for yamuna expressway development.

    It needs to be seen in detail how gaurs have created this jack and JILL mess .... only time will tell how they will be able to wash their hands off the mess.

    CommentQuote
    1 Comments
    • Vbb1281 years ago
      I agree. Perhaps other experts in the group need to do their homework before passing the doomsday verdict.
  • Originally Posted by bhuwan
    Some facts

    1. For some projects in wishtown like kalypso, pavilion customers make payment to JAL ( jaiprakash associates). Receipt of payment is from JAL.

    2. For lot of projects in wishtown like kasa, orchards etc customer make payment to JIL ( jaypee infratech)
    Receipt of payment is from JIL.

    3. Allotment letter of all projects in wishtown are on JAL letterhead, stamped by JAL and signed for JAL & JIL

    4. Wishtown Land was allotted to JAL.

    5. JAL had 70% stake in JIL

    6. JIL was formed as SPV for yamuna expressway development.

    It needs to be seen in detail how gaurs have created this jack and JILL mess .... only time will tell how they will be able to wash their hands off the mess.



    The only reason that JAL is not on the bankruptcy list is that banks have already invoked SDR against it. The remediation plan for JAL is not yet clear, but if no other option emerges, it is possible it might be liquidated too, in fact, probably even before JIL is.

    The financial condition of JAL is not much better than JIL, in fact it is probably worse, since it houses most of the debt and has many loss making subsidiaries like the Formula 1 business.

    The bottomline is that JP is a big mess and all parties concerned might be forced to recognize their losses earlier than they anticipated​ with the latest move.
    CommentQuote
  • Originally Posted by Truenity


    If the contractors have any sense, they will know they have little hope of getting any payments through now. Unless JP fronts up cash, which it is short of, work is likely to come to a grinding halt soon.

    270 days is not a grace period to continue things as they were. It is the maximum time that can be taken for the process to get to the liquidation stage. According to the code, a resolution plan is expected to be worked out within 180 days, with a possible extension of 90 days in special circumstances.

    If the bankruptcy adminstration decides within one week that liquidation is the only viable option, then the liquidation process will start immediately and not wait for 270, or even 180, days.


    Of course, i didnt say that 270 days is notice period. I said Liquidation comes into picture ONLY IF resolution is not found in that much time !
    CommentQuote
  • Originally Posted by vivmits


    Of course, i didnt say that 270 days is notice period. I said Liquidation comes into picture ONLY IF resolution is not found in that much time !


    That is not correct. Liquidation can come into the picture immediately if there is consensus that is the only viable option straight away. The 180 days deadline ( and 90 day extension) becomes relevant only if there is no consensus reached on how to proceed. In that case, liquidation gets automatically triggered at the end of 180 days ( 270 days if extension was received).
    CommentQuote
  • Originally Posted by Truenity


    That is not correct. Liquidation can come into the picture immediately if there is consensus that is the only viable option straight away. The 180 days deadline ( and 90 day extension) becomes relevant only if there is no consensus reached on how to proceed. In that case, liquidation gets automatically triggered at the end of 180 days ( 270 days if extension was received).


    I also said the same thing, 270 days is maximum period, it can take lesser/much lesser period also. But point remains, liquidation comes into picture only if resolution is not found in a maximum period of 180+90 days ! In my opinion chances are higher of arriving at a resolution as nobody gains from liquidation which will not generate enough funds anyway.
    CommentQuote
  • Originally Posted by vivmits


    I also said the same thing, 270 days is maximum period, it can take lesser/much lesser period also. But point remains, liquidation comes into picture only if resolution is not found in a maximum period of 180+90 days ! In my opinion chances are higher of arriving at a resolution as nobody gains from liquidation which will not generate enough funds anyway.


    It is much better to liquidate immediately than to continue to throw money into a perennially loss making business. Savings will include the massive salaries paid to JP employees, several crores paid in lawyers' fees. In case JP loses one of the several court cases against them , it could cost thousands of crores. Some foreign banks have already sold their loans to vulture funds at a greater than 50% loss and moved on. Domestic banks have already made 25% provision on JP being declared NPA. They should be smart and take the hit now. If they wait , they might end up with nothing as courts might order JP to sell their assets to complete flats they have delayed delivery on to their customer and might even impose massive penalties. That would be a good outcome for customers, but terrible for the banks. So, from their perspective , liquidation is the best option.
    CommentQuote
  • Originally Posted by Truenity


    It is much better to liquidate immediately than to continue to throw money into a perennially loss making business. Savings will include the massive salaries paid to JP employees, several crores paid in lawyers' fees. In case JP loses one of the several court cases against them , it could cost thousands of crores. Some foreign banks have already sold their loans to vulture funds at a greater than 50% loss and moved on. Domestic banks have already made 25% provision on JP being declared NPA. They should be smart and take the hit now. If they wait , they might end up with nothing as courts might order JP to sell their assets to complete flats they have delayed delivery on to their customer and might even impose massive penalties. That would be a good outcome for customers, but terrible for the banks. So, from their perspective , liquidation is the best option.


    But what will happen to the GC? There is no FAR left so its not like they can sell that land and construct more apartments there?


    CommentQuote
  • Originally Posted by Imperialnoid


    But what will happen to the GC? There is no FAR left so its not like they can sell that land and construct more apartments there?



    It's not that FAR has not been increased before. In this case, it can even be done in the garb of public interest, as the funds generated from converting the golf course into a concrete jungle can be claimed to be for the purpose of completing the stuck towers in Wishtown, Aman and Sports City. Builder lobby and non GC side customers of JP will both be happy with this solution.
    CommentQuote
  • only Bahubali can save this Mahesmati:)
    CommentQuote
  • I doubt that. :(
    CommentQuote
  • Halwa Hai Kya? Changing Master plan is not a peice of cake.
    I doubt that golf course can be used for further construction. There will be protests from residents arounf the golf course due to change of master plan. Golf Club members have paid for this facility. Golf COurse has been included in Noida Master Plan.
    CommentQuote
  • Originally Posted by firstimebuy
    Halwa Hai Kya? Changing Master plan is not a peice of cake.
    I doubt that golf course can be used for further construction. There will be protests from residents arounf the golf course due to change of master plan. Golf Club members have paid for this facility. Golf COurse has been included in Noida Master Plan.


    Sir...let them cook whatever they fancy. Who cares?
    Some frustrated souls get happiness over peoples misery...let them be happy.

    CommentQuote
  • Originally Posted by firstimebuy
    Halwa Hai Kya? Changing Master plan is not a peice of cake.
    I doubt that golf course can be used for further construction. There will be protests from residents arounf the golf course due to change of master plan. Golf Club members have paid for this facility. Golf COurse has been included in Noida Master Plan.


    Obviously, there will be huge protests from those who bought because of the golf course view ( from the tone of your post I gather you belong to this category) , but JP is going bankrupt and the tens of thousands of customers who have not yet got delivery have no hope , unless some out of the box solution is come up with.

    When a company goes bankrupt, there are no good solutions. If any of the possible solutions were a ice of cake, it would already have been implemented. Hard decisions will have to be taken and many people will have to take a hit. The only question is who.

    Just to make it clear, I have no idea if something like this is being contemplated, but this is one plausible solution where the pain gets socialized. If you have any better ideas for how the imcomplete towers get completed, please post them.

    CommentQuote
  • Originally Posted by NamoDya


    Sir...let them cook whatever they fancy. Who cares?
    Some frustrated souls get happiness over peoples misery...let them be happy.


    Dear friend,

    Irrational exuberance and refusing to face reality might make one feel good temporarily, but ultimately the cold facts will catch up.

    One cannot find a solution to a difficult problem unless one is willing to acknowledge it.
    CommentQuote