The next few days will prove to be crucial for the future of J&P Overseas as there are reports referring to the need to place the company under administration due to excessive debt estimated to be more than half a billion Euro.
According to Kathimerini the management of the company is in contact with international banks in efforts to secure funding and that within the next few days crucial steps will be taken. The company is confident that the issue will be dealt with in spite of news of the opposite. The reply from the banks will determine whether the company will be placed under administration.
At the same time sources that are familiar with the issue say that the financial problems in the company started due to previous mismanagement, and point to the handlings of Andreas Papathoma. Papathoms had been removed in July and now the Board of Directors of the company includes Leoni and Efthyvoulos Paraskevaidis and Dakis and Christos Ioannou. Leoni and Efthyvoulos have recently visited the company's premises in Saudi Arabia, and a series of meetings and consultations have taken place between the Board of Directors for decisions on the next steps and how to manage the situation.
Staff without salary
Meanwhile, the group's staff both in Cyprus and abroad have been experiencing the company’s liquidity shortfall for months now. Kathimerini has learned that the salaries of the past three months have not been paid to Ten Group Services personnel in Cyprus, while employees in Saudi Arabia have remained unpaid for the last four months. In recent days strikes reportedly occurred at the last construction site called Al Bustan Housing Project. Developments have prompted a number of employees to resign and return to Cyprus. Consultations are also carried out with SEK and PEO trade unions.
Clarifications by Ioannou & Paraskevaides Ltd
In a statement, Ioannou & Paraskevaidis Ltd, said that the Cypriot company Ioannou and Paraskevaidis is an independent legal and economic entity with its own resources, assets, financial capabilities and experience. ‘’Developments in JOANNOU & PARASKEVAIDES (OVERSEAS) LTD, an overseas company, do not affect the viability and the activities of our company at all. Regarding the projects mentioned, we clarify that in Limassol Marina, the Cypriot company IOANNOU & PARASKEVAIDIS LTD, J & P AVAX S.A. of Greece and ATHENA S.A. of Greece participate. At the ONE TOWER in Limassol, the Lebanese company ACC ARABIAN CONSTRUCTION CO. and the Cypriot company IOANNOU & PARASKEVAIDI LTD’’.
‘’All work on the projects under construction is performed on the basis of contractual obligations of the company. Our company is able to handle both existing and future projects that will be assigned to it, "concludes the announcement signed by Chief Executive Officer Efthyvoulos Iakovidis.