Employees of support company on strike demanding unpaid wages from defunct J&P Overseas

Employees of Ten Group Services, which offers support to J&P Overseas that is currently under liquidation, went on strike on Wednesday morning outside the company’s offices in Nicosia demanding their salaries.

Construction giant J&P Overseas Limited has gone into administration earlier in the month after its lenders rejected its restructuring proposal. A court in Guernsey has already appointed two administrators from the consulting firm Alvarez and Marsal to oversee the winding up of the construction company.

The strike is related to the current situation and it has nothing to do with the Cyprus-based Joannou & Paraskevaides Ltd, a source told the Cyprus Mail.

Following news that the company was under liquidation, it emerged that staff have not been paid for about three months. The company employs some 18,000 people. Its financial problems became apparent earlier this year after employees in construction sites in Saudi Arabia made public a letter about big delays in the payment of their wages, which was followed a few months later by a strike.

During the past few months it had been facing significant liquidity problems due to challenging local market conditions, unfavourable final contract settlements, delays in contract receipts and limited financial resources to pursue new projects. It said it had actively engaged with all its stakeholders in seeking to develop a viable solution that would allow it to continue trading.

“Unfortunately, a comprehensive restructuring plan submitted to the company’s lenders and developed with the assistance of professional advisors was recently rejected, which has left limited room for the Company to manoeuvre and meet its ongoing obligations,” the company had said.

J&P Cyprus said that this does not affect its own operations as it is legally and financially independent from the overseas company.
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