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Jaypee Greens Wishtown, Noida

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Jaypee Greens Wishtown, Noida

Last updated: 6 hours ago
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  • 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.

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    • 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.

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      • Re : Jaypee Greens Wishtown, Noida

        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

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        • 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.

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          • 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.

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            • 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.

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              • Vbb128
                Vbb128 commented
                Editing a comment
                I agree. Perhaps other experts in the group need to do their homework before passing the doomsday verdict.

            • Re : Jaypee Greens Wishtown, Noida

              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.

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              • Re : Jaypee Greens Wishtown, Noida

                Originally posted by Truenity View Post

                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 !

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                • Re : Jaypee Greens Wishtown, Noida

                  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).

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                  • Re : Jaypee Greens Wishtown, Noida

                    Originally posted by Truenity View Post

                    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.

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