Announcement

Collapse
No announcement yet.

Jaypee Greens Wishtown, Noida

Collapse
X
Collapse

Jaypee Greens Wishtown, Noida

Last updated: 5 days ago
8757 | Posts
  • Time
  • Show
Clear All
new posts

  • Re : Jaypee Greens Wishtown, Noida

    When would jp go bankrupt? This year , 2018, 2019, 2020 or when

    Comment


    • Re : Jaypee Greens Wishtown, Noida

      I say 2018

      Comment


      • Re : Jaypee Greens Wishtown, Noida

        Originally posted by NamoDya
        When would jp go bankrupt? This year , 2018, 2019, 2020 or when
        Bankruptcy proceedings are supposed to start anytime within a month, according to the RBI directive and get to the liquidation state in up to 270 days. This is the legal and technical situation.

        For all practical purposes, JP has been defaulting and been in an insolvent state for a while now. The only reason it ( and many other companies) has not already been bankrupted is the lack of a clearly defined framework and the reluctance of bank to admit that they made bad credit decisions and to recognize losses.

        The formal directive does make things much worse for day to day operations, though. Any contractor or supplier that does work on credit for JP, which is a common practice in the industry, is now almost certain to not get paid from a legal perspective. The same is true for employees whose salaries are delayed. So, the impact of this development will be felt almost immediately.

        Comment


        • Vbb128
          Vbb128 commented
          Editing a comment
          Another example where no research or lack of research is going to cause panic. Please do your homework ..... most of the lenders have high degree of provision against Jaypee and hence this is already adjusted in their P and L. In fact in 2017, RBI has allowed banks to classify some of Jaypee debt as a standard asset, thus reflecting a positive action based on debt restructuring measures taken by the company. The banks have also taken over the land parcels of Jaypee which are all actions taken in 2017. If you read the RBI leak and all the reports, they state that this status is as of March 2016. The situation is different now in 2017 due to asset sales by Jaypee.

          For your ready reference. Many more available if you take the time to research

          http://www.livemint.com/Companies/oK...fy-groups.html

          http://economictimes.indiatimes.com/...w/57263980.cms
          Last edited by Vbb128; June 18 2017, 01:53 PM.

      • Re : Jaypee Greens Wishtown, Noida

        So what should customers do ?

        Comment


        • Re : Jaypee Greens Wishtown, Noida

          Originally posted by bhuwan
          So what should customers do ?
          Many people on this forum had been advising people to get out of and stay away from JP projects. For those who have not followed this advice, it might be too late to do anything. If banks are going to be forced to take losses, customers, who are much lower in the bankruptcy credit waterfall, are unlikely to get anything. However, each person's legal situation is unique and one should consult a qualified lawyer for specific advice.

          If the majority of customers can organize themselves as a group, which is quite unlikely, they can petition to ring fence specific assets that are still unencumbered, which can then be used to finance construction of their homes. For example, they can try to get control of the golf course, get land use changed, ask for FAR increase and sell it to some builder who can sell new towers there in return for completing construction of incomplete projects.

          This is just a hypothetical suggestion. Bankruptcy under the new code is unprecedented and no one knows how exactly it will proceed, but it is certainly a good idea for everyone affected to get individual qualified legal advice to see what options, if any, they have.

          Comment


          • Re : Jaypee Greens Wishtown, Noida

            Bankruptcy proceedings of JP will formally start soon as per RBI directive. NPA is a huge problem for Banking sector and Political Govt has tried to avoid it since long time.

            Whereas RBI has issued the directive, there is still lack of clarity how this thing will Pan out. The Banking regulations amendment to handle NPA mess is again full of loopholes.

            Anyway, there will be 3 key players involved. PSU Banks, Private Sec Banks & other Creditors. All 3 will be looking to grab hold of JP leftover assets. There is absolutely no voice of customers of JP RE sector in Bankruptcy proceedings. Whereas actual Bankruptcy may take time, the spigot of money of JP will stop very very soon.

            If there was a Buyers association of JP project, they should be carefully study the unencumbered RE assets of JP and use legal means to ring fence these assets. Sale of these assets is the only hope for incomplete projects.

            Political Govt don't wanna touch clean up of RE sector with 10 ft poll. RE bill was prepared by previous Govt long ago but they delayed the passage by several years. Finally present Govt had the bill on its table but they again delayed the passage. Even after passage they delayed implementation by 1 year at least. RE clean up will start aggressively in 2019 that will result in bankruptcy of major RE players.

            Comment


            • Re : Jaypee Greens Wishtown, Noida

              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.

              Comment


              • Re : Jaypee Greens Wishtown, Noida

                Originally posted by Grenoite
                Sirji, everyone talking big banks, rbi, land deals but i have one question

                If land, then surely banks will like to take it, hospital, hotel, golf course any other party can take as no other people involve

                Bit what about flat projects which sold to 1000s of buyers, will bank be even interested to take over it ? As they will also have to deal with buyers , will they want it ? I think no

                I have hear rumours that jaypee gave commercial plot to paras builder in exchange for it to complete one of their project

                I think if thats real happen then it could be a way out

                Something like that can help buyers who stuck

                I sure no bank will like to take over project land where flats half make and 1000s of buyers involve
                That is right. Banks don't want to be involved in the mess of dealing with thousands of buyers. That is why they invoked SDR in the case of JP Power and JP Associates, but not in the case of JP Infratech.

                The most likely scenario is that all assets will be auctioned off and because it's a fire sale , there won't be enough to pay off lenders. It is a legal way for JP management to wash their hands off the mess as the company will be wound up and customers, contractors etc will be left holding the bag. Once the bankruptcy proceedings are over, the promoter family can make a fresh start.

                Comment


                • Re : Jaypee Greens Wishtown, Noida

                  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.
                  Last edited by Truenity; June 18 2017, 05:44 PM.

                  Comment


                  • Re : Jaypee Greens Wishtown, Noida

                    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.

                    Comment


                    • Vbb128
                      Vbb128 commented
                      Editing a comment
                      I agree. Perhaps other experts in the group need to do their homework before passing the doomsday verdict.
                  Tags: None
                  Have any questions or thoughts about this?
                  Working...
                  X