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T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, March 31, 2017, Vol. 20, No. 65
Headlines
I N D I A
ESHYAN INFRATECH: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
KVK BIO: Ind-Ra Affirms 'D' Rating on INR35 mil. Capital Facility
MA MAHAMAYA: CRISIL Assigns 'B' Rating to INR6.0MM Cash Loan
O. P. S. INTERNATIONAL: CRISIL Reaffirms B Rating on INR2MM Loan
P&M AND HI TECH: CRISIL Reaffirms 'D' Rating on INR40MM Cash Loan
PLAZMA GRANITO: CRISIL Cuts Rating on INR20.0MM Term Loan to 'B'
REGENERATIVE MEDICAL: Ind-Ra Raises Issuer Rating to 'BB-'
REMI EDELSTAHL: CRISIL Lowers Rating on INR30MM Cash Loan to B+
RENEWSYS INDIA: Ind-Ra Affirms 'BB+' Long-Term Issuer Rating
SDM PROJECTS: Ind-Ra Affirms 'BB' Long-Term Issuer Rating
SHIRPUR POWER: Ind-Ra Lowers Rating on INR15.140BB Loan to 'BB+'
SM-JDB ESTATE: Ind-Ra Assigns 'BB-' Long-Term Issuer Rating
SPENTAGON CERAMIC: CRISIL Reaffirms B+ Rating on INR5.0MM Loan
SRI SATYANARAYANA: CRISIL Assigns B+ Rating to INR10MM Term Loan
SUMERU ENERGY: Ind-Ra Assigns BB+ Rating to INR203.1MM Bank Loan
SUPREME INFRAPROJECTS: Ind-Ra Affirms 'D' Rating on INR646MM Loan
SUPREME SUYOG: Ind-Ra Affirms 'D' Rating on INR600MM Bank Loans
SYMTRONICS AUTOMATION: CRISIL Ups Rating on INR4.5MM Loan to 'B'
VMAX POWER: CRISIL Assigns 'B' Rating to INR3.0MM LT Loan
J A P A N
WESTINGHOUSE ELECTRIC: SCANA's VC Summer Project to Go On
WESTINGHOUSE ELECTRIC: Has $800-Mil. Financing from Apollo, Citi
WESTINGHOUSE ELECTRIC: Filing Won't Impact EMEA Operations
WESTINGHOUSE ELECTRIC: Case Summary & 30 Top Unsecured Creditors
S I N G A P O R E
CHINA FISHERY: Wants Exclusivity Extended for Another 9 Months
- - - - -
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I N D I A
=========
ESHYAN INFRATECH: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
-------------------------------------------------------------
India Ratings has assigned Eshyan Infratech (EI) a Long-Term
Issuer Rating of 'IND B+'. The Outlook is Stable. The
instrument-wise rating actions are:
-- INR10 mil. Fund-based working capital assigned with
'IND B+/ Stable/IND A4' rating;
-- INR20 mil. Non-fund-based working capital assigned with
'IND A4' rating;
-- INR15 mil. *Proposed fund-based working capital assigned
with provisional 'IND B+/Stable/Provisional IND A4' rating;
and
-- INR35 mil. *Proposed Non-fund -based working capital
assigned with 'Provisional IND A4' rating
*The rating is provisional and shall be confirmed upon the
sanction and execution of loan documents for the above facilities
by EI to the satisfaction of Ind-Ra.
KEY RATING DRIVERS
The ratings reflect EI's small scale of operations and moderate
credit metrics. Revenue declined to INR17 million in FY16 (FY15:
INR20 million). The decline in revenue was mainly due to a
decrease in order inflow. Net leverage (total adjusted net
debt/operating EBITDAR) was 0.4x in FY16 (FY15: 0.7x) and interest
coverage (operating EBITDA/gross interest expense) was 3.7x
(9.2x). EBITDA margin improved to 9.0% in FY16 (FY15:5.9%) on
account of high margin orders. EI booked revenue of INR60 million
during the 10MFY17. EI has an outstanding order book, as on
February 2017, of INR180 million, likely to be executed by 3QFY18.
The ratings, however, are supported by the promoter's experience
of more than two decades in civil construction.
EI's liquidity remains comfortable with its fund based facilities
being utilized at an average of 32.7% over the 11 months ended
February 2017.
RATING SENSITIVITIES
Negative: Substantial decline in the top-line or profitability and
sustained deterioration in overall credit metrics could lead to a
negative rating action.
Positive: Substantial growth in the top-line and sustained
improvement in the credit metrics could be positive rating action
COMPANY PROFILE
EI was incorporated in 2013 as a partnership firm engaged in the
civil construction of underground level water tank, overhead water
tank, pipelines, and roads. The firm has completed the projects
of water pipeline construction in Karnataka and Andhra Pradesh and
underground level water tank in Andhra Pradesh.
KVK BIO: Ind-Ra Affirms 'D' Rating on INR35 mil. Capital Facility
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed KVK Bio Energy
Private Limited's (KBEL) working capital facility as:
-- INR35 mil. Working capital facility affirmed with 'IND D'
rating
KEY RATING DRIVERS
The rating reflects KBEL's continued overutilization of working
capital facility, indicating a stretched liquidity position. The
company's plant which was not operational since June 2014 resumed
operations in May 2016. Plant load factor was 48% between May
2016 and February 2017.
RATING SENSITIVITIES
Positive: A positive rating action could result from the
regularization of cash credit use within the sanctioned limits for
minimum three consecutive months and evidence that the project
will be able to generate the cash flows necessary for sustained
and timely debt service.
COMPANY PROFILE
KBEPL, sponsored by MMS Steel & Power Pvt Ltd (95% stake) and KVK
Energy & Infrastructure Private Limited (5% stake), owns a 15MW
biomass-based power plant in Chhattisgarh. The boiler set up at
the plant works with a mix of rice husk and coal in the ratio of
75:25. The company has signed a 20-year supplementary power
purchase agreement with Chhattisgarh State Power Distribution
Company Limited (erstwhile Chhattisgarh State Electricity Board)
in April 2013.
MA MAHAMAYA: CRISIL Assigns 'B' Rating to INR6.0MM Cash Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of MA Mahamaya Rice Mill Private Limited.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 0.24 CRISIL A4 (Assigned;
Suspension revoked)
Cash Credit 6.00 CRISIL B/Stable (Assigned;
Suspension revoked)
Term Loan 1.90 CRISIL B/Stable (Assigned;
Suspension revoked)
CRISIL had suspended its ratings on the bank facilities of MMRMPL
on April 6th 2016, as the company had not provided the information
required for a rating review. It has now shared the requisite
information, enabling CRISIL to assign ratings to the facilities.
The ratings reflect the company's weak financial risk profile
because of small networth, modest scale of operations in the
fragmented rice milling business, and susceptibility to volatility
in raw material prices and changes in government regulations.
These weaknesses are partially offset by diverse clientele.
Key Rating Drivers & Detailed Description
Weaknesses
* Weak financial risk profile: Cash losses in the last two fiscal
eroded networth, which was negative as on March 31, 2016. Despite
gradual improvement, networth is expected to remain subdued.
* Small scale of operations: With installed capacity of 8 tonne
per hour and operating income of INR38.6 crore in fiscal 2016,
scale remains modest in the competitive rice milling industry.
Despite estimated 10% growth in current year, scale will remain
small.
* Exposure to volatility in raw material prices, uneven monsoon,
and government regulations: Since paddy is an agriculture product,
availability is seasonal as yield depends on monsoon. Paddy and
rice prices are also affected by changes in government policy.
Strengths
* Diverse customer base: The company currently has a large
clientele of 10-15 brokers and over 100 direct customers in
Jharkhand and West Bengal.
Outlook: Stable
CRISIL believes MMRMPL will benefit over the medium term from its
diverse clientele and stable demand for rice. The outlook may be
revised to 'Positive' if a substantial increase in cash accrual,
equity infusion by promoters, or better working capital management
leads to significant improvement in liquidity and capital
structure. The outlook may be revised to 'Negative' if low cash
accrual, stretch in working capital cycle, or large, debt-funded
capital expenditure further weakens financial risk profile,
particularly liquidity.
Incorporated in 2006, MMRMPL mills non-basmati parboiled rice at
its facility in Madhyamgram, West Bengal, and sells under the
Mahamaya Bhog brand. Operations are managed by its director, Mr.
Sandip Hazra.
Net loss was INR31 lakh on an operating income of INR38.67 crore
during fiscal 2016, against a net loss of INR3.31 crore on an
operating income of INR30.19 crore during the previous fiscal.
O. P. S. INTERNATIONAL: CRISIL Reaffirms B Rating on INR2MM Loan
----------------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank facilities of
O. P. S. International (OPSI) at 'CRISIL B/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 2 CRISIL B/Stable (Reaffirmed)
Letter of Credit 14 CRISIL A4 (Reaffirmed)
The ratings reflect the expectation of a stable business risk
profile because of moderate scale of operations with modest but
sustained operating profitability. Operating revenue was stagnant
at INR93.5 crore in fiscal 2016 against INR93.6 crore in fiscal
2015. Operating profitability remained modest at 2% in fiscal
2016. The operating revenue is expected to remain stable over the
medium term due to muted demand amongst high competition.
Analytical Approach
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of OPSI and its associate entity, Om
Prakash Satish Kumar (OPSK), together referred to as the OPS
group. This is because both the entities have common management
and derive business and financial synergies from each other.
CRISIL has treated unsecured loans of INR10.17 crore as neither
debt nor equity as the loans are expected to be retained in the
business over the medium term.
Key Rating Drivers & Detailed Description
Weaknesses
* Large working capital requirement: Operations are working
capital intensive, indicated by high gross current assets of 229
days as on March 31, 2016. The group maintains an average
inventory of around 3 months of cost of sales to support its
operations. Furthermore, the group offers a credit of 2-3 months
to customers, thereby increasing working capital requirement.
Although working capital requirement is accentuated by the margin
money requirement of around 10% of the letter of credit value, it
is partially assuaged by credit of around 180 days received for
raw material imports. Operations are expected to remain working
capital intensive over the medium term.
* Weak financial risk profile: Networth was modest at INR2.1 crore
as on March 31, 2016 and is expected to remain modest over the
medium term due to negligible accretion to reserve driven by low
operating profitability. Consequently, gearing was high at 2.2
times. Debt protection metrics were below average, reflected in
interest coverage and net cash accrual to adjusted debt ratios of
1.16 times and 0.04 time, respectively, for fiscal 2016. The
metrics are expected to remain below average over the medium term
driven by modest profitability.
Strength
* Established regional presence aided by experience of promoter:
The group started timber business in 1950s with a saw mill in
Delhi's Sadar Bazaar. Over the years, the promoter developed
healthy relationship with various exporters of wooden logs in
several countries including Indonesia, Myanmar, and Singapore,
thus facilitating timely availability of raw material (wooden
logs) for operations. The promoter's experience also aided
development of relations with various wooden product dealers and
traders in the domestic market. Benefits from the promoter's
experience will continue to support the business.
Outlook: Stable
CRISIL believes the OPS group will continue to benefit over the
medium term from the promoter's experience and established
customer relationship. The outlook may be revised to 'Positive' if
financial risk profile is strengthened by fresh equity infusion or
sizeable cash accrual driven by increase in scale of operations
and operating profitability. Conversely, the outlook may be
revised to 'Negative' if decline in revenue or operating
profitability, larger-than-expected debt-funded capital
expenditure, or substantial capital withdrawal weakens financial
risk profile.
Set up in 2005 as a partnership firm by Mr Om Prakash Satish
Kumar, OPSI imports and trades in hardwood and softwood
(Malaysian/New Zealand).
OPSK, established in 1987, is a proprietorship concern promoted by
the same family. It also imports and trades in hardwood and
softwood. Based in Delhi, the operations are managed by Mr Sumit
Singhal.
Profit after tax was INR1.6 lakh on net sales of INR37.72 crore in
fiscal 2016, vis-a-vis INR1.4 lakh and INR30.26 crore,
respectively, in fiscal 2015.
P&M AND HI TECH: CRISIL Reaffirms 'D' Rating on INR40MM Cash Loan
-----------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL D' rating on the long-term bank
facility of P&M and Hi Tech Infrastructures LLP (PMHT-LLP).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 40 CRISIL D (Reaffirmed)
The rating continues to reflect the firm's continuously overdrawn
cash credit facilities for more than 30 days.The firm also faces
risks related to demand for space in its mall. However, it
benefits from its promoters' experience in managing a mall.
Key Rating Drivers & Detailed Description
Weakness
* Exposure to risks relating to demand for space in mall
PMHT-LLP is setting up a mall in Jamshedpur, Jharkhand. It has
tied up with Cinepolis for multiplex and with Future group for
anchor retail space, both of which are present in the firm's P&M
Mall in Patna. However, the firm has leased only a small
proportion of the space available, so far. Resultantly, its debt
service coverage ratio will be inadequate over the medium term.
Strength
* Promoters' experience through successful operation of P&M Mall
in Patna
PMHT-LLP's mall in Patna has been operational since 2011. The firm
has tied up for space in its upcoming mall with few of the anchor
clients. The Hi Tech group, being Jamshedpur-based, has strong
understanding of local consumer preferences, which will benefit
the firm over the medium term.
PMHT-LLP, set up in 2010, is a partnership between P&M
Infrastructures Ltd, which developed the P&M Mall in Patna, and
Benko Traders, which represents the Jamshedpur-based Hi Tech
group. The firm was set up to develop and manage a multiplex-cum-
mall in Jamshedpur.
PLAZMA GRANITO: CRISIL Cuts Rating on INR20.0MM Term Loan to 'B'
---------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank loan
facilities of Plazma Granito Private Limited (PGPL) to 'CRISIL
B/Stable' from 'CRISIL B+/Stable' while reassigning its 'CRISIL
A4' rating on the company's short-term facility.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2.5 CRISIL A4 (Reassigned)
Cash Credit 7.0 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
Proposed Long Term 1.5 CRISIL B/Stable (Downgraded
Bank Loan Facility from 'CRISIL B+/Stable')
Term Loan 20.0 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
The downgrade reflects the delayed implementation and
commercialization of the project leading to delayed cash inflows
for the company. The company was expected to start operations from
August 2016 but has fully started operations from March 2017.
While the revenues are expected to ramp up in the current fiscal,
the company's accruals versus repayment situation is expected to
remain constrained due to the tightly match cash accruals for
fiscal 2018. Further, the company's revenues and operating margin
levels will remain key rating sensitivity factors over the medium
term.
The ratings reflect the tightly matched cash accruals against
upcoming repayments, moderate working capital intensity, average
financial risk profile and modest scale of operations. These
ratings weaknesses are partially offset by the extensive
experience of the promoters in the industry and strategic location
of the company.
Key Rating Drivers & Detailed Description
Weaknesses
* Tightly matched cash accruals with upcoming repayment
obligations: The repayment obligation of term debt will start from
June, 2017. CRISIL expects that the company will generate tightly
match cash accruals of INR2.90 Cr. against repayment of INR2.77 Cr
for FY18 and will generate cash accruals of INR3.97 Cr against
repayment of INR3.33 Cr in FY19.
* Working-capital-intensive operations: PGPL is expected to have
large working capital requirement, reflected in gross current
assets of 47 days, mainly because of large receivables and
inventory. The company will have to maintain inventory of 30-45
days, in line with industry practice. Working capital requirement
will be partly supported by credit from suppliers.
* Average financial risk profile: Financial risk profile will be
constrained by high gearing, expected at 1.57 times as on
March 31, 2017, and weak debt protection metrics, with interest
coverage expected at 0.46 time and net cash accrual to total debt
ratio at a negative 0.06 time for fiscal 2017.
* Expected modest scale of operations: PGPL's scale of operations
is expected to be modest. The commercial operations started in
March, 2017 and the company is estimated to have generated revenue
of around INR1.0 crore in FY17. The modest scale of operations
limits its bargaining power with suppliers as well as customers.
Strengths
* Extensive experience of promoters in the ceramic industry: The
promoters' experience of around two decades in the vitrified and
wall tiles industry through associate entities, and their healthy
relationships with dealers will support PGPL's business risk
profile.
* Strategic location ensuring availability of raw materials and
labour: The company is based in Morbi, Gujarat, which accounts for
65-70% of India's ceramic tile production. PGPL will benefit from
easy access to clay (main raw material), and contractors and
skilled labourers. Other critical infrastructure such as gas and
power are also readily available in Morbi. Transportation cost is
low as it is close to the major ports of Kandla and Mundra in
Gujarat.
Outlook: Stable
CRISIL believes PGPL will continue to benefit from its promoters'
extensive industry experience. The outlook may be revised to
'Positive' if revenue and profitability are more than expected,
leading to substantial cash accrual, and working capital is
efficiently managed. The outlook may be revised to 'Negative' if
revenue or operating profitability is lower than expected, or if
cash accrual is low in the initial phase, resulting in pressure on
the financial risk profile and liquidity.
Incorporated in 2014, PGPL is Morbi, Gujarat based company engaged
into manufacturing of vitrified tiles. The commercial operations
of the company started in March, 2017.
REGENERATIVE MEDICAL: Ind-Ra Raises Issuer Rating to 'BB-'
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Regenerative
Medical Service Private Limited's (RMSPL) Long-Term Issuer Rating
to 'IND BB-' from IND B+. The Outlook is Stable. A summary of
rating actions on the company?s instruments is:
-- INR25 mil. Fund-based working capital limit raised to
'IND BB-/Stable/IND A4+' rating; and
-- INR43.68 mil. (reduced from INR46.76 mil.) Term loan*
raised to 'IND BB-/Stable' rating
*Details of term loan is mentioned in Annexure
KEY RATING DRIVERS
The upgrade reflects the license received by RMSPL to operate its
regrow business from the Ministry of Health and Family Welfare,
Government of India on March 17, 2017. Following which, RMSPL
entered in an exclusive agreement with Apollo hospitals across
India for marketing and sale of the regrow business. As a result,
Ind-Ra expects revenue of around INR590 million, EBITDA margins of
5.5%-7.0%, interest coverage of around 2.0x and net financial
leverage of about 3.6x in FY18.
Ind-Ra downgraded RMSPL's ratings on Jan. 24, 2017, owing to the
deterioration in its credit profile, resulting from the temporary
discontinuation of the regrow and indenting businesses. Revenue
declined 17.3% yoy to INR172 million in FY16 (FY15: INR209
million). The company reported negative EBITDA margins of 42.2%
in FY16 (3.9%).
The ratings are supported by the firm's comfortable liquidity
position with an average use of fund-based facilities of 46.9%
over the 12 months ended February 2017.
The ratings also draw comfort from the founders' more than two
decades of experience in stem cell banking and regenerative cell
therapies.
RATING SENSITIVITIES
Positive: A significant increase in the scale of operations and
profitability margins, leading to a sustained improvement in the
credit metrics will be positive for the ratings.
Negative: Non-achievement of revenue and profitability margins
from the regrow business as expected by management could be
negative for ratings.
COMPANY PROFILE
RMSPL was set up in 1989 as Satyan Interchem Pvt Ltd and was
engaged in the indenting business. In 2009, Satyan Interchem was
renamed to RMSPL. The company is engaged in stem cell banking
(contributes 100% to revenue).
REMI EDELSTAHL: CRISIL Lowers Rating on INR30MM Cash Loan to B+
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Remi Edelstahl Tubulars Limited (RETL) to 'CRISIL B+/Negative
/CRISIL A4' from 'CRISIL BB+/Negative/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 20 CRISIL A4 (Downgraded
from 'CRISIL A4+')
Cash Credit 30 CRISIL B+/Negative
(Downgraded from
'CRISIL BB+/Negative')
Letter of Credit 30 CRISIL A4 (Downgraded
from 'CRISIL A4+')
Proposed Long Term 4 CRISIL B+/Negative
Bank Loan Facility (Downgraded from
'CRISIL BB+/Negative')
The downgrade reflects stress on the business risk profile of the
company reflected in a steep decline in turnover due to lower-
than-anticipated demand in the end user-power, refinery, and
petrochemical-industries, high inventory, and falling input
prices. Furthermore, limited capacity utilisation resulted in low
absorption of fixed cost and hence to a cash loss in fiscal 2016.
Turnover is estimated at around INR60 crore in fiscal 2017 against
INR100 crore in fiscal 2015. Furthermore, waning realisation per
tonne adversely affects profitability. Improvement in the scale of
operations and profitability, while securing new orders, would be
key rating sensitivity factors over the medium term.
The ratings reflect exposure to cyclicality in end-user
industries, working capital-intensive operations, and low return
on capital employed (RoCE). These rating weaknesses are partially
offset by a moderate financial risk profile because of continued
fund support from promoters and group entities, though the debt
protection metrics are below-average. The ratings also factor in
the extensive experience of the promoters in the seamless pipes
industry and their long association with reputed clients.
Analytical Approach
CRISIL has treated unsecured loans from promoters as neither debt
nor equity (NDNE)
Key Rating Drivers & Detailed Description
Weaknesses
* Low operating margin: The operating margin declined by 620 basis
points to 0.3% in fiscal 2016, resulting in a cash loss of INR1.25
crore. The decline in the margin was on account of lower capital
expenditure by end-user industries driven by the stressed economic
environment. This resulted in low capacity utilisation and reduced
absorption of overhead costs. Over the medium term, operating
efficiency is likely to be under pressure due to low capacity
utilisation.
* Working capital-intensive operations: Gross current assets were
high at 210 days as on March 31, 2016, driven by large inventory.
Operations are likely to remain working capital intensive over the
medium term.
* Low RoCE: The RoCE was low at around 3% in fiscal 2016 on
account of the highly working capital-intensive operations. It had
declined to 5.5% in fiscal 2015 from 8% in fiscal 2013. The RoCE
will remain low over the medium term on account of a low operating
margin and working capital-intensive operations.
Strengths
* Extensive industry experience of the promoters: The promoters
have an experience of 45 years in the seamless pipes manufacturing
industry. This has helped them understand the industry and the
local market and enabled the company to add large clients such as
Indian Oil Corporation Ltd, Larsen & Toubro Ltd, Bharat Heavy
Electricals Ltd, Bharat Petroleum Corp Ltd, and Hindustan
Petroleum Corporation Ltd. Regular orders has helped sales growth.
* Moderate financial risk profile: The capital structure is
healthy, helped by continued fund support from promoters and group
entities. The networth is estimated INR50 crore, gearing at less
than 0.2 time, and the total outside liabilities to tangible
networth ratio at below 0.5 time, as on March 31, 2017. However,
debt protection metrics are below average, providing limited
financial cushion to raise funds in case of exigencies. The
financial risk profile is expected to remain stressed over the
medium term because of a low RocE and below-average debt
protection metrics, though the capital structure is likely to
remain comfortable.
Outlook: Negative
CRISIL believes RETL's business risk profile will be constrained
over the medium term due to subdued demand from some of the key
end-user industries; however, it will continue to benefit from the
extensive industry experience of its promoters. The ratings may be
downgraded if substantial debt-funded capital expenditure, lower-
than-anticipated cash accrual, or a stretch in the working capital
cycle weakens the financial risk profile. The outlook may be
revised to 'Stable' in case of a significant increase in the scale
of operations while the operating margin improves, leading to
higher-than-expected cash accrual.
RETL was incorporated in 1970, promoted by Mr Vishwambharlal
Chiranjilal Saraf. The company manufactures seamless and welded
constructed tubes and pipes used in the power, petrochemicals, and
heavy engineering sectors, refineries, and oil and gas processing
plants. It has manufacturing capacity of 12,000 tonne per annum in
Tarapur, Maharashtra.
In fiscal 2016, net sales were INR95.68 crore and net loss INR6.09
crore, against INR164.59 crore and INR2.12 crore, respectively, in
fiscal 2015.
RENEWSYS INDIA: Ind-Ra Affirms 'BB+' Long-Term Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Renewsys India
Private Limited's (RIPL) Long-Term Issuer Rating at 'IND BB+'.
The Outlook is Stable. The instrument-wise rating actions are:
-- INR280 (increased from INR124.5) mil. Long term loan
affirmed with 'IND BB+/Stable' rating;
-- INR100 (increased from INR5.5) mil. Fund-based facilities
affirmed with 'IND BB+/Stable' rating; and
-- INR150 mil. Non-fund-based facilities assigned with 'IND
A4+' rating
KEY RATING DRIVERS
The affirmation reflects the continuous support to RIPL from the
promoters in the form of equity. The company has also been
assured of further fund injection from the promoter in case of
need, leading to cushioning of the debt-service requirement. RIPL
converted the external commercial borrowing (ECB) of INR768
million in March 2017 to equity.
The ratings reflect RIPL's top-line growth while returning cash
losses in FY16 and FY17. RIPL's revenue grew by 69% yoy to
INR1,215 million in FY16, and is likely to have booked revenue of
INR1,387 million during 10MFY17, up 25% yoy. The substantial
increase is on account of continuous flow of orders which is also
reflected in the outstanding order book of INR862 million as of
end-February 2017, which is likely to be completed in the next two
months.
The ratings are constrained by the EBITDA loss incurred in FY16
due to increases in the fixed cost. RIPL registered EBITDA loss
of INR109 million in FY16 against a profit of INR74 million in
FY15 (first full year of operation). It added 100MW each of solar
modules and solar cells to its existing capacity during FY16
taking its total installed capacity to 130MW for solar cell and
180 MW for solar modules. Delay in commencement of the commercial
operation at the Hyderabad plant and increase in fixed overheads
on increased capacity were responsible for the loss RIPL incurred
in FY16. Ind-Ra expects the EBITDA loss to continue in FY17E on
account of high operational expenses. The company incurred a loss
of INR351.7 million during 10MFY17.
The management expects the profitability to normalize from FY18 as
its order flow increases, leading to better absorption of fixed
costs.
Liquidity was moderate with average peak utilization of fund-based
working capital facilities at 84.8% during the 12 months ended
February 2017.
RATING SENSITIVITIES
Positive: Substantial growth in positive EBITDA margin leading to
a sustained improvement in the credit metrics could be positive
for the ratings.
Negative: Any sustained deterioration in the EBITDA margin leading
to substantial deterioration in the credit metrics could be
negative for the ratings.
COMPANY PROFILE
RIPL was established in 2014. The company manufactures different
solar panel components such as EVA sheet, back sheets, solar
module, cells, etc.
SDM PROJECTS: Ind-Ra Affirms 'BB' Long-Term Issuer Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed SDM Projects
Private Limited's (SDMPPL) Long-Term Issuer Rating at 'IND BB'.
The Outlook is Stable. The instrument-wise rating actions are:
-- INR20 mil. Fund-based facilities assigned with
'IND BB/Stable/IND A4+' rating; and
-- INR50 mil. Non-fund-based facilities affirmed with
'IND A4+' rating
KEY RATING DRIVERS
The affirmation reflects SDMPPL's continued small scale of
operations. Revenue was INR119 million in FY16 (FY15:
INR84 million) and INR150 million in 10MFY17 (interim numbers).
The ratings are constrained by the company's tight liquidity
position as reflected in its 84.51% use of the fund-based
facilities over the six months ended February 2017.
However, the ratings are supported by the healthy revenue
visibility stemming from the company's order book size of
INR832.42 million as of February 2017 (7x of FY16 revenue). Ind-
Ra expects the company to execute an order amounting to INR20
million by end-March 2017.
The ratings are also supported by SDMPPL's comfortable credit
metrics as reflected in the sharp improvement in EBITDA interest
coverage (operating EBITDA/gross interest expense) to 11.9x in
FY16 (FY15: 2.1x) while net leverage (adjusted debt net of
cash/EBITDA) was comfortable at 1.5x (negative 0.3x). The
improvement is attributed to the improvement in the EBITDA margin
to 8% in FY16 (FY15: 6%) due to the execution of high-margin
projects.
RATING SENSITIVITIES
Positive: A substantial increase in the revenue while maintaining
the profitability resulting in an improvement in the overall
credit metrics could result in a positive rating action.
Negative: A decline in the profitability leading to deterioration
in the overall credit metrics could result in a negative rating
action.
COMPANY PROFILE
Incorporated in 2007, SDMPPL is a Bengaluru-based civil
contractor, engaged in the construction and development of
infrastructure project such as water supply projects, national
highway project, power project, specialized infrastructure
construction works for special economic zones.
SHIRPUR POWER: Ind-Ra Lowers Rating on INR15.140BB Loan to 'BB+'
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Shirpur Power
Private Limited's (SPPL) bank loan ratings as:
-- INR15.140 bil. Rupee term loan lowered to 'IND BB+/Stable'
rating
KEY RATING DRIVERS
The rating reflects SPPL's further postponement of the project's
commercial operations date (COD) to October 2017. The date was
earlier revised to April-May 2016 from the initially scheduled
October 2014. The initial cost overrun was around INR3,000
million which was financed in a debt-equity of 64:36. The further
overrun of INR4,224 million is likely to be met through promoter
funds (unsecured loans and equity), according to the management.
Moreover, SPPL is exposed to inherent completion risks associated
with a greenfield thermal power project. According to the
September 2016 lenders' independent engineer's report, the project
progress was 96.70% on the original schedule (target: 100%). The
delay is attributed to the delays in the erection of boiler,
turbine and generator, delays in the erection of transmission line
and railway siding on account of right of way issues which were
beyond the control of promoters. The revised cost/MW of INR82.8
million compared with the initial estimate of INR58.8 million
could put pressure on the debt service coverage ratio as
management expects to replace the sponsor equity contribution of
INR1.5 billion with debt (post commercial operation date).
Timely infusion of the additional balance equity of INR2.442
billion and funding of the debt portion of INR1.500 billion will
be a key determinant of the project's ability to achieve timely
completion. The total equity of the project including the cost
overrun will be INR8.207 billion. Of the total equity 26% will
have to be brought in by captive consumers. Although they have
not infused any funds into the project till date, the company
expects them to fulfill the requirement close to the COD.
The rating, however, reflect limited construction risk. Although
the engineering, procurement and construction (EPC) contractor
does not have an experience in the construction of a power plant,
it has awarded back-to-back EPC sub-contracts to reputed and
experienced vendors. Also, the project company has appointed
experienced technical advisors and personnel. Furthermore,
equipment have been sourced from reputed vendors such as Bharat
Heavy Electricals Ltd ('IND AA+'/Negative) and the EPC contract
has adequate performance warranty and provisions for liquidated
damages, in line with other Indian projects.
Also, the project sponsor has provided an undertaking to SPPL's
lenders to cover any cash shortfalls in the latter's debt service
under the financing documents. Although completion and revenue
risks have a significant bearing on the project's credit quality
at this juncture, they are somewhat addressed by the sponsor
undertaking.
The rating also reflects moderate off-take risk. The project is
based on the group captive unit model; under which, group captive
users will purchase at least 51% of the capacity and have to
subscribe to 26% of the equity capital to avail the benefit of the
unit in accordance with the extant regulations. Till date, around
80.98% of the total capacity has been tied-up under reasonably
long-term power sale agreements (PSAs) with potential captive
users. There are adequate incentives in PSAs to retain consumers'
patronage, even as the economic interest of the project is
protected. Counterparty risks include generally weak financial
profile of some of the off-takers.
SPPL's ability to secure coal supplies in a timely manner at the
contracted price is a key rating factor. SPPL has a long-term
fuel supply agreement (FSA) with an Indonesian coal trader for a
firm quantity of 1.25mtpa. It also has entered into an FSA with
an Indonesian coal miner and negotiating for an additional FSA
with a global coal trader for 0.5mtpa each at index-linked prices.
The coal will be transported from Hazira port to the site through
rail. But according to the management, the railway siding will be
operational not before September 2017, in the interim period the
coal will be transported through trucks from the port.
The floating interest rate on the bank debt is a source of
financial risk. The bank debt's variable interest rate,
resettable on the COD and annually thereafter, could add to cash
flow volatility. Structural features include a debt service
reserve account covering two quarters of principal and interest;
however, its creation only out of operational cash flow reduces
its effectiveness.
RATING SENSITIVITIES
Positive: Achievement of COD along with stabilization of plant and
firm up of PSAs could result in a rating upgrade.
Negative: Material delays in achieving he revised COD or non-
compliance of group captive guidelines, along with absent sponsor
support, could result in a rating downgrade.
COMPANY PROFILE
SPPL is implementing a 300MW (2 X 150MW) sub-critical thermal
power plant near Dhule, Maharashtra. The plant will operate on
100% imported coal. The estimated project cost is INR24,8500
million, of which INR8,210 million is being funded by promoter
funds, and the rest by debt. The SPV is a 100% subsidiary of
Sixvents Power and Engineering Limited (formerly Sintex Power
Limited), a part of the Sintex promoter group.
SM-JDB ESTATE: Ind-Ra Assigns 'BB-' Long-Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned SM-JDB Estate
Pvt.Ltd (SMJDB). a Long-Term Issuer Rating of 'IND BB-'. The
Outlook is Stable. The agency has taken this action on this
company's long-term loans:
-- INR800 mil. Long term loan assigned with 'IND BB-/ Stable'
rating
KEY RATING DRIVERS
The ratings reflect SMJDB's near completion status of the hotel
project. The hotel, which will function under the Novotel brand,
is likely to have started operations on March 27, 2017. The
ratings factor in the tough competition the hotel, being a new
entrant in the industry will face from the existing players,
forcing the management to reduce its profitability to grab the
market.
The liquidity position of the entity is likely to be comfortable
as the repayment of long-term loan will start from September 2019.
The ratings, however, benefit from the locational advantage of the
hotel (being situated in the city of Guwahati) and brand tie up
with Novotel hotel.
RATING SENSITIVITIES
Positive: Stabilization of operations leading to sustained
profitable operations and comfortable credit profile would lead to
a positive rating action.
Negative: Inability to stabilize the operation which would lead to
stress in liquidity position may lead to negative rating action.
COMPANY PROFILE
SMJDB is setting up a four star hotel of 129 rooms with commercial
retail space of 1,629sqm at G.S Road, Guwahati to cater to the
city's business and corporate sector and leisure/ health tourists.
The total cost of the project is INR1,299.80 million.
SPENTAGON CERAMIC: CRISIL Reaffirms B+ Rating on INR5.0MM Loan
--------------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank facilities of
Spentagon Ceramic Private Limited (SCPL) at 'CRISIL
B+/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 1.5 CRISIL A4 (Reaffirmed)
Cash Credit 4.5 CRISIL B+/Stable (Reaffirmed)
Term Loan 5.0 CRISIL B+/Stable (Reaffirmed)
The ratings continue to reflect working capital intensive
operations and average financial risk profile. These weaknesses
are partially offset by stabilisation of operations driven by the
extensive experience of its promoters in the ceramic industry and
strategic location of plant at Morbi, Gujarat, which ensures
availability of raw materials and labour.
Key Rating Drivers & Detailed Description
Weaknesses
* Working-capital-intensive operations: Operations will remain
working capital intensive, as reflected in gross current assets of
125 days expected as on March 31, 2017, mainly because of large
receivables and inventory. The company needs to maintain inventory
of 30-40 days, in line with industry practice. Working capital
requirement will be partly supported by credit from suppliers.
* Average financial risk profile: Financial risk profile is
expected to remain average marked by high gearing of 2.16 times as
on March 31, 2017 and weak debt protection metrics with interest
coverage of 1.5 times and net cash accruals to total debt of 0.06
time.
Strengths
* Extensive experience of promoters in the ceramic industry:
Benefits from the promoters' experience of around five years, and
healthy relationships with dealers will continue to support the
business risk profile. Prior to setting up SCPL, the promoters
were in the vitrified and wall tiles industry through associate
entities.
* Strategic location ensuring availability of raw materials and
labour: The manufacturing facilities are in Morbi, which accounts
for 65-70% of India's ceramic tile production. SCPL is likely to
derive significant benefits from being present in Morbi; these
include easy access to clay (main raw material) and availability
of contractors and skilled labourers. Other critical
infrastructure such as gas and power are also readily available in
Morbi. Transportation cost is low since it is located close to the
major ports of Kandla and Mundra (both in Gujarat).
Outlook: Stable
CRISIL believes SCPL will benefit over the medium term from the
extensive industry experience of its promoters. The outlook may be
revised to 'Positive' if working capital management is efficient
and increase in revenue and profitability, leads to substantial
cash accrual. The outlook may be revised to 'Negative' if low
revenue or operating profitability or cash accrual weakens
financial risk profile, particularly liquidity.
Incorporated in 2013, SCPL manufactures ceramic floor glazed
tiles. The commercial operations of the company started in April,
2016.
SRI SATYANARAYANA: CRISIL Assigns B+ Rating to INR10MM Term Loan
----------------------------------------------------------------
CRISIL has assigned 'CRISIL B+/Stable' rating to the bank loan
facilities of Sri Satyanarayana Swamy Hatcharies (SSSH).The
ratings reflect the firm's exposure to inherent risks in the
poultry industry and exposure to completion and stabilization
risks because of its initial stage of operations. These weaknesses
are partially offset by the extensive experience of its promoters
in poultry industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Cash
Credit Limit 2 CRISIL B+/Stable
Term Loan 10 CRISIL B+/Stable
Key Rating Drivers & Detailed Description
Strength
* Extensive experience of its promoters in poultry industry.
The firm is promoted by four promoters namely Mr. Errabelli
Pradeep Kumar Rao, Smt Errabelli Renuka, Errabelli Praneeth Rao,
Errabelli Vineeth. The firm is closely family managed business.Mr.
Errabelli Pradeep Rao aged 58 years also the managing partner of
Sri Satyanarayana Swamy Farms with capacity of 2 lakh laying birds
since 1994.He has close to 35 years of experience in poultry
business. He is also current regional chairman of National Egg Co-
ordination Committee.
Weaknesses
* Exposure to inherent risks in the poultry industry
The poultry farming industry is driven by regional demand and
supply factors, due to the constraint on transportation and the
limited shelf life of the product. Also, the industry is highly
fragmented with large number of unorganized players on account of
low entry barriers due to low capital intensity. SSSH, operating
in the open market, is susceptible to intense competition in the
segment.
* Exposure to completion and stabilization risks because of its
initial stage of operations
The project completion is expected by December 2017 with 2018-19
being the first full year of operations. Given the project stage,
the company is exposed to funding, implementation risks. Any cost
or time overrun can impact the commercialization and stabilization
of operations.
Outlook: Stable
CRISIL believes that the SSSH will continue to benefit from its
promoter's experience in the poultry industry. The outlook may be
revised to 'Positive' if SSSH' successfully completes its project
within stipulated time with no cost overrun and commences the
operations. Conversely, the outlook may be revised to 'Negative'
if there are significant delays or cost overrun in its ongoing
project resulting in deterioration of its financial risk profile.
Incorporated on September 12, 2016, Sri Satyanarayana Swamy
Hatcheries (SSSH) would be setting up a breeding farm for 52500
broiler parents along with feed mill. The Firm is promoted by Mr.
Errabelli Pradeep Kumar Rao who is currently regional chairman of
National Egg Co-ordination Committee.
SUMERU ENERGY: Ind-Ra Assigns BB+ Rating to INR203.1MM Bank Loan
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Sumeru Energy
Private Limited's (SEPL) senior project bank loan as:
-- INR203.1 mil. Senior project bank loan assigned with
'IND BB+/Stable' rating
KEY RATING DRIVERS
The rating is constrained reflects the increasing trend in SEPL's
payment days to about 70 days in December 2016 from about 30 days
in October 2016 due to the delayed payments by the counterparty,
and the lack of a waterfall mechanism, unlike Ind-Ra rated peers.
Moreover, SEPL is the first foray into the renewables space by the
sponsors. Moreover, SEPL's limited operating track record and
lack of third party studies on solar resource estimate constrain
the rating.
Also, unlike other Ind-Ra rated projects where the operations and
maintenance (O&M) operator is generally identified for more than
two years, the engineering, procurement and construction contract
for the present project includes the responsibility for the O&M of
the plant for just one year since commissioning. The O&M contract
for the subsequent years is yet to be awarded.
The rating however is supported by the project recording an
average plant load factor of 22.52% during October 2016 to January
2017, which is higher than the SEPL's solar resource assessment
estimates (P90 level) of 21.43%.
The rating is also supported by the presence ofa 20-year power
purchase agreement with Southern power Distribution Company of
Andhra Pradesh Limited at a fixed-tariff of INR6.45/kWh.
Also, an INR10 million debt service reserve account has been
created which is equivalent to one quarter of debt service
obligations. SEPL has utilized debt of INR189 million out of
sanctioned INR203.1 million. SEPL claims that there will not be
further loan disbursement.
RATING SENSITIVITIES
Positive: Consistent operational plant performance and coverage
ratios reasonably higher than Ind-Ra's base case could result in a
positive rating action.
Negative: Lower-than-expected plant performance, any significant
payment delays from the off-taker, lower-than-expected coverage
ratios, and/or any material additional leverage could result in a
rating downgrade.
COMPANY PROFILE
SEPL was incorporated in 2014 to set up a 5MW solar plant, in
Jagadhurti village, Kurnool district, Andhra Pradesh. The plant
has been operational since September-2016. SWEPL is owned by
eight individuals (of whom four are directors in SEPL. The
project was set up at a total cost of INR320.5 million, funded by
INR100 million of equity, INR31.6 million of unsecured loans from
sponsors and an INR189 million of bank loan. Ilios Power Private
Limited is the engineering, procurement and construction
contractor of the project. Debt repayments are spread out in 177
monthly installments starting from April 2017. The solar resource
assessment study by SEPL indicates average annual radiation of
5.46kWh/sq m for the site.
SUPREME INFRAPROJECTS: Ind-Ra Affirms 'D' Rating on INR646MM Loan
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Supreme
Infraprojects Private Ltd.'s (SIPL) term loan as:
-- INR646.9 mil. Term loans affirmed with 'IND D' rating
KEY RATING DRIVERS
The affirmation reflects SIPL's continuing delays in debt
servicing since the last rating review, as reported in the
company's annual report for FY16, because of a tight liquidity
position.
RATING SENSITIVITIES
Positive: Timely debt servicing for three consecutive months will
be positive for the ratings.
COMPANY PROFILE
SIPL is a special purpose company owned by Supreme Infrastructure
BOT Private Limited (a 100% subsidiary of Supreme India
Infrastructure Limited (IND D) to complete the construction of,
operate and maintain, the 55.77km state highway connecting Patiala
and Malerkotla under a re-assigned concession from Public Works
Department, the government of Punjab. The project commenced
operations on June 25, 2012.
SUPREME SUYOG: Ind-Ra Affirms 'D' Rating on INR600MM Bank Loans
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Supreme Suyog
Funicular Ropeways Private Ltd's (SSFRPL) proposed bank loans as:
-- INR600 mil. Bank loans affirmed with 'IND D' rating
KEY RATING DRIVERS
The affirmation reflects SSFRPL's continuing delays in debt
servicing since the last rating review, as reported in the
company's annual report for FY16 because of a tight liquidity
position.
RATING SENSITIVITIES
Positive: Timely debt servicing for three consecutive months will
be positive for the ratings.
COMPANY PROFILE
SSFRPL is a special purpose vehicle incorporated to construct a
funicular railway at Haji Malanggad, Ambernath (Maharashtra) on a
build, operate and transfer basis under a 24.5 years concession
agreement with the government of Maharashtra. SSFRPL is sponsored
by Supreme Infra BOT Private Limited (98%), a 100% subsidiary of
Supreme Infrastructure India Limited ('IND D') Suyog Telematics
Private Ltd (1%) and Yashita Automotive Engineering Private Ltd
(1%).
SYMTRONICS AUTOMATION: CRISIL Ups Rating on INR4.5MM Loan to 'B'
----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Symtronics Automation Private Limited (SAPL) to 'CRISIL B/Stable'
from 'CRISIL B-/Stable,' while reaffirming its short-term rating
at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 1.5 CRISIL A4 (Reaffirmed)
Cash Credit 4.5 CRISIL B/Stable (Upgraded
from 'CRISIL B-/Stable')
Proposed Long Term 0.5 CRISIL B/Stable (Upgraded
Bank Loan Facility from 'CRISIL B-/Stable')
The upgrade reflects CRISIL's expectation that the firm will
maintain its improved business risk profile over the medium term.
Revenue grew to INR5.51 crore in fiscal 2016 from INR 4.70 crore
in fiscal 2015, and is expected to touch INR5.78 crore in fiscal
2017. Furthermore, it has order book of INR5-6 crore to be
executed in the next 6-8 months, providing revenue visibility over
the medium term. Operating margin remained healthy at 18% in
fiscal 2016 and is likely to continue in fiscal 2017.
The ratings continue to reflect an average financial risk profile
because of a modest networth and weak debt protection metrics, its
modest scale, and working capital-intensive operations. These
weaknesses are partially offset by the extensive experience of
promoters in the control panel manufacturing industry, and
established market position in the niche segment of control
systems for defence applications.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale and working capital-intensive operations: Scale of
operations is small as reflected in revenue of INR5.51 crore in
fiscal 2016. CRISIL believes the scale will grow in the medium
term but remain modest.
Operations are working capital intensive as reflected in its gross
current assets of 501 days as on March 31, 2016, mainly on account
of high debtors and inventory of 116 and 463 days, respectively.
* Average financial risk profile: Networth was modest at INR3.08
crore as on March 31, 2016, and debt protection metrics were
average, with interest coverage and net cash accrual to total debt
ratios at 1.3 times and 0.03 time, respectively, in fiscal 2016.
Strength
* Extensive experience of promoter and established customer
relationships: The director, Mr Ravindra Bhagwat, has extensive
experience of around four decades in the electronic control
systems industry. CRISIL believes SAPL will benefit from its
promoters' extensive experience and technological capabilities.
Outlook: Stable
CRISIL believes SAPL will continue to benefit over the medium term
from its promoters' extensive experience. The outlook may be
revised to 'Positive' in case of higher-than-expected cash
accrual, driven by improvement in scale of operations, or a
sustainable improvement in the working capital cycle. Conversely,
the outlook may be revised to 'Negative' in case of deterioration
in the financial risk profile, particularly liquidity, driven by
lower-than-expected cash accrual, or a stretched working capital
cycle caused by delay in realisation of receivables.
SAPL was initially established as a partnership concern, was
reconstituted as a private limited company in 1986. The company,
promoted by Mr Atul Chaudhari, designs and manufactures electronic
control systems and caters to naval applications. SAPL is
registered with the Directorate General of Quality Assurance of
the Ministry of Defence, Government of India, as well as with
other relevant departments of the Indian Navy with a Proprietary
Article Certification status.
KRB reported a profit after tax of INR0.10 crore on net sales of
INR5.51 crore for fiscal 2016, against INR0.14 lakh and INR4.70
crore, respectively, for fiscal 2015.
VMAX POWER: CRISIL Assigns 'B' Rating to INR3.0MM LT Loan
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank loan facilities of Vmax Power Controls Pvt Ltd (VPCPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 3.0 CRISIL B/Stable
Open Cash Credit 2.2 CRISIL B/Stable
The rating reflects its modest scale and working capital intensive
nature - of operations in the intensely competitive electrical
equipment's & components industry. The rating also factors in its
below-average financial risk profile marked by high gearing,
modest debt protection metrics and networth. These rating
weaknesses are partially offset by the benefits derived from its
promoters' extensive industry experience.
Key Rating Drivers & Detailed Description
Weakness
* Modest scale- and working capital intensive nature- of
operations in the intensely competitive seed industry VPCPL's
scale of operations are modest as indicated by its estimated
revenue of INR9.5 crores in 2016-17 (refers to financial year,
April 1 to March 31) vis-a-vis revenue of INR9.4 crores in 2015-
16. The company's modest scale of operations prevents it from
deriving benefits arising from economies of scale and makes it
susceptible to intense competition from large established players.
SRAGPL's business is highly working capital intensive, as
reflected in estimated gross current asset (GCA) days of 132 days
as on March 31, 2017, owing to its high inventory levels of around
45 days and receivables cycle of 75 days. VPCPL's revenue is
expected to show moderate growth and remain working capital
intensive over the medium term.
* Below-average financial risk profile
VPCPL's financial risk profile is marked by its high gearing,
modest debt protection metrics and networth. The gearing is
estimated at 2.2 times with estimated interest coverage and net
cash accruals to total debt (NCATD) at 1.6 times and 0.04 times,
respectively as on March 31, 2017. In absence of any major debt
funded capex plans and higher accruals, the gearing and debt
protection metrics is expected to improve marginally over the
medium term.
Strengths
* Promoters' extensive experience
VPCPL benefits from extensive industry experience of its promoters
in electrical equipment's & components industry. The day-to-day
operations are managed by Mr. N V Rao who has around 2 decades of
experience.
Outlook: Stable
CRISIL believes VPCPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if there is substantial and
sustained increase in the company's revenues and profitability
margins, or there is a sustained improvement in its working
capital management. Conversely, the outlook may be revised to
'Negative' in case of a steep decline in its profitability
margins, or significant deterioration in capital structure caused
most likely by a large debt-funded capital expenditure or stretch
in working capital cycle.
Established in 2007 as a private limited company, Vmax Power
Control Pvt Ltd (VPCPL) is a manufacturer of electrical control
panels. Based in Hyderabad (Telangana), the company is promoted
and managed by Mr. N V Rao.
For 2015-16, VPCPL reported profit after tax (PAT) of INR0.08
lakhs on net sales of INR9.4 crores against PAT of INR0.07 crores
on net sales of INR8.9 crores for 2014-15.
=========
J A P A N
=========
WESTINGHOUSE ELECTRIC: SCANA's VC Summer Project to Go On
---------------------------------------------------------
SCANA Corporation on March 29, 2017, provided an update with
regard to the impact of the Chapter 11 filing of Westinghouse
Electric Company, LLC (WEC) on the new nuclear project at the V.C.
Summer Nuclear Station. South Carolina Electric & Gas Company,
principal subsidiary of SCANA, and V.C. Summer Nuclear Station co-
owner, Santee Cooper, contracted with WEC to build two
Westinghouse AP1000 reactors in Fairfield County, S.C.
SCANA and Santee Cooper have been working with WEC in anticipation
of the bankruptcy filing to reach an agreement, subject to
bankruptcy court approval, that allows for work on the project to
continue toward completion of the units. This agreement, which
will be filed today with the court as part of WEC's bankruptcy
filings, allows for a transition and evaluation period during
which SCANA and Santee Cooper will assess information provided by
WEC and determine the most prudent path forward for the project.
"This agreement with Westinghouse allows progress to continue to
be made on-site while we evaluate the most prudent path to take
going forward," said SCANA Chairman and CEO, Kevin Marsh. "Fluor
will continue as the construction manager during this period and
they continue to work towards completion of the units."
Lonnie Carter, Santee Cooper President and CEO, said, "This
agreement will provide SCE&G and Santee Cooper the time necessary
to perform due diligence related to cost and schedule. It gives
us critical direct access to resources and information that
Westinghouse had not provided us to date, which will be important
as we plan for the future of the project."
David Seaton, Fluor Chairman and CEO, said, "Fluor will continue
to support SCANA, Santee Cooper, and Westinghouse on the VC Summer
project as the parties work through the current situation. We
remain committed to the successful completion of this important
project."
About Westinghouse Electric
Westinghouse Electric Company LLC --
http://www.westinghousenuclear.com/-- is a U.S. based nuclear
power company founded in 1999 that provides design work and
start-up help for new nuclear power plants and makes many of the
components. Westinghouse manufactures and supplies the commercial
fuel products needed to run the plants, and it offers training,
engineering, maintenance, and quality management services. Almost
50% of nuclear power plants around the world and about 60% of U.S.
plants are based on Westinghouse's technology. Westinghouse's
world headquarters are located in the Pittsburgh suburb of
Cranberry Township, Pennsylvania. Westinghouse has 12,000
employees worldwide.
On Oct. 16, 2006, Westinghouse Electric was sold for $5.4 billion
to a group comprising of Toshiba (77% share), partners The Shaw
Group (20% share), and Ishikawajima-Harima Heavy Industries Co.
Ltd. (3% share). After purchasing part of Shaw's stake in 2013,
Japan-based conglomerate Toshiba obtained ownership of 87% of
Westinghouse.
Amid cost overruns at U.S. nuclear reactors it was Building, on
March 29, 2017, Westinghouse Electric Company LLC, along with 29
affiliates, filed voluntary petitions for relief under Chapter 11
of the United States Bankruptcy Code. The cases are pending joint
administration under Case No. 17-10751 before the
Honorable Michael E. Wiles (Bankr. S.D.N.Y.).
WESTINGHOUSE ELECTRIC: Has $800-Mil. Financing from Apollo, Citi
----------------------------------------------------------------
Following a competitive marketing process, Westinghouse Electric
Company LLC said it has secured a commitment from certain
affiliates of Apollo Global Management, LLC, to provide an $800
million postpetition secured financing facility agented by
Citibank, N.A., and inclusive of up to $225 million cash
collateralized letter of credit facility (the "DIP LC Facility")
issued by an affiliate of Citibank, that will allow the Debtors to
fund their operations, develop a restructuring plan, and emerge
from chapter 11, all while ensuring Westinghouse maintains its
position as the world's leading supplier of safe and innovative
nuclear technology.
"The Debtors are in the advantageous position of operating a
number of profitable, cash-flow positive business lines, and
owning a strong base of largely unencumbered assets. Accordingly,
the Debtors have been able to attract substantial postpetition
financing on favorable economic terms from a reputable lender that
is eager to partner with Westinghouse to achieve its restructuring
goals," Garrett A. Fail, Esq., at Weil, Gotshal & Manges LLP,
explains.
"Prior to selecting the Apollo and Citibank proposal, the Debtors
and their advisors engaged in a robust and competitive marketing
process that attracted tremendous interest from the capital
markets, including from a significant number of leading banks,
private equity firms, and hedge funds. Ultimately, following
lengthy negotiations with a select group of parties submitting the
most competitive bids, Apollo emerged as the leading contender to
finance the Debtors' restructuring efforts given the flexible and
competitive economic terms of their financing commitment."
By this Motion, the Debtors ask the U.S. Bankruptcy Court for the
Southern District of New York for entry of an interim order, as
well as a final order, granting, among other things the following
relief:
a) Entry into DIP Loan Documents -- authority for the Debtors
to execute and enter into the DIP Loan Documents and to perform
all such other and further acts as may be necessary or appropriate
in connection with the DIP Loan Documents to pay to the DIP Agent,
arrangers and DIP Lenders all fees, costs and expenses due
pursuant to the DIP Term Sheet, any related fee letters, or other
DIP Loan Documents;
b) Authority to Access DIP Loans and DIP LC Facility --
authority for WEC U.S. to (i) be the Borrower under the DIP
Facility, which provides for senior secured superpriority loans in
the aggregate amount of $800 million (the "DIP Loans"), and
letters of credit in an aggregate available amount of up to $225
million under the DIP LC Facility, and (ii) draw funds under the
DIP Facility in the aggregate amount of up to $350 million (and
request the issuance of letters of credit in the aggregate
available amount of up to $100 million under the DIP LC Facility)
upon entry of the Interim Order to avoid immediate and irreparable
harm to the Debtors and their estates;
c) Issue Guarantees -- authority for the DIP Guarantors to
guarantee the obligations of WEC U.S. under the DIP Facility
(collectively with all obligations of WEC U.S. under the DIP LC
Facility, the "DIP Obligations");
d) DIP Liens and Superpriority Claims -- authority for the
Debtors to grant security interests, liens, and superpriority
claims to the DIP Lenders, the LC Issuer and DIP Agent to secure
the DIP Obligations;
e) Entry into EMEA Intercompany Facility -- authority for WEC
U.S. to advance amounts (including any proceeds of the DIP Loan)
up to $375 million (the "EMEA Intercompany Facility") to certain
non-debtor foreign affiliates of WEC U.S. listed on Schedule 2 of
the DIP Term Sheet (the "EMEA Intercompany Borrowers"), inclusive
of $75 million under the DIP LC Facility, to be (i) guaranteed by
each non-Debtor that receives (directly or indirectly) proceeds
from the EMEA Intercompany Facility (the "EMEA Intercompany
Beneficiaries"), and (ii) secured by the assets of the EMEA
Entities (to the extent required by certain applicable local
jurisdiction requirements);
f) Use of Proceeds -- authority for the Debtors to use the
proceeds of the DIP Loans in accordance with the Budget and the
DIP Loan Documents;
g) Waiver of Stay -- waiver of any applicable stay (including a
stay pursuant to Bankruptcy Rule 6004) with respect to the
effectiveness or enforceability of the Interim Order; and
h) Schedule Final Hearing -- the scheduling of a final hearing
pursuant to Bankruptcy Rule 4001 and Local Rule 4001-2 to consider
entry of the Final Order.
A hearing on the DIP financing and the other first day motions was
held on March 30, 2017 at 11:00 a.m. ET before the Honorable
Michael E. Wiles, U.S. Bankruptcy Judge, U.S. Bankruptcy Court for
the Southern District of New York, One Bowling Green, Room 617,
New York.
The Debtors' marketing efforts for the DIP financing were led by
their proposed investment banker, PJT Partners ("PJT"), who
described the Debtors' process as one of the most competitive and
robust they have experienced.
Counsel to the lenders under the Debtors' proposed DIP Facility:
Jeffrey D. Saferstein, Esq.
PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP
1285 Avenue of the Americas
New York, NY 10019-6064
E-mail: jsaferstein@paulweiss.com
- and -
Claudia R. Tobler, Esq.
PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP
2001 K Street, NW
Washington, DC 20006-1047
E-mail: ctobler@paulweiss.com
Counsel to the agents and letter of credit issuer under the
Debtors' proposed DIP Facility:
Fredric Sosnick, Esq.
Ned S. Schodek, Esq.
SHEARMAN & STERLING LLP
599 Lexington Avenue, New York, NY 10022
E-mail: fsosnick@shearman.com
ned.schodek@shearman.com
Prepetition Financing
Unlike the majority of large multi-national companies entering
chapter 11, the Debtors are not party to any secured funded debt
arrangements, and the majority of the Debtors' assets are
unencumbered by liens. The only third party financial debt the
Debtors have is a bank credit facility, which has no drawn
balance, and includes the LC Facility.
In 2006, Toshiba and certain of its affiliates acquired a
controlling equity interest in Westinghouse, and since that time,
Westinghouse has relied on Toshiba as its primary source of
capital funding. Recent funding from Toshiba to Westinghouse
includes (a) $250 million provided to WEC U.S. pursuant to a $100
million promissory note dated Feb. 6, 2017, and a $150 million
promissory notes dated Feb. 13, 2017 (collectively, the
"Promissory Notes"), and (b) $650 million provided to Westinghouse
Electric UK Holdings Limited ("WEC UK") pursuant to a Loan
Agreement dated as of Feb. 6, 2017.
Beyond Toshiba, Westinghouse's only other significant source of
prepetition financing was a $625 million letter of credit facility
(the "LC Facility"), which certain Debtors and EMEA Entities
access pursuant to that certain Second Amended and Restated Credit
Agreement dated as of Oct. 7, 2009 (the "LC Agreement") among WEC
U.S. and WEC UK as co-applicants, BNP Paribas, as administrative
agent (the "LC Agent"), and a number of banks (the "LC Banks"), as
lenders.
In addition to WEC U.S., a number of the Debtors and EMEA Entities
utilize and rely heavily upon the LC Facility to post letters of
credit ("LCs") to support dozens of customer projects across
several business lines, as well as to provide financial assurance
to nuclear and environmental regulators with respect to potential
decommissioning or remediation liabilities. As of the date
hereof, the aggregate amount of LCs posted pursuant to the LC
Facility is approximately $494 million, which was cash
collateralized by a $534 million cash deposit from a special
purpose vehicle affiliated with Toshiba on March 28, 2017. As co-
applicants under the LC Facility, WEC U.S. and WEC UK are jointly
and severally liable for the obligations thereunder. Further, the
obligations under the LC Facility are guaranteed by Toshiba
pursuant to a Second Amended and Restated Parent Guarantee dated
as of Oct. 7, 2009 (the "LC Guarantee").
Summary of DIP Facility
* Borrower: Westinghouse Electric Company LLC
* Guarantors: All of the Debtors that are direct and indirect
subsidiaries of the Borrower (the "US Guarantors") and Toshiba
Nuclear Energy Holdings (UK) Limited (together with the US
Guarantors, the "DIP Guarantors")
* DIP Lenders: Apollo Investment Corporation; AP WEC Debt
Holdings LLC; Midcap Financial Trust; Amundi Absolute Return
Apollo Fund PLC; Ivy Apollo Strategic Income Fund; an Ivy Apollo
Multi Asset Income Fund (collectively, the "Initial Lender" or
"Apollo" with any other banks, financial institutions or
institutional lenders identified by Apollo in consultation with
the Borrower, on a several and not joint basis.
* DIP Agent: Citibank, N.A. is the administrative and
collateral agent.
* Lead Arranger and Bookrunner: Citigroup Global Markets Inc.
shall act as sole lead arranger and bookrunner for the DIP
Facility.
* DIP Facility: The DIP Facility provides for senior secured
superpriority term loans in an aggregate principal amount of $800
million to be made available to the Borrower. The DIP Facility
includes a Letter of Credit sublimit up to $225 million that may
be used to provide cash for a cash collateralized letter of credit
facility (the "DIP LC Facility") issued by the LC Issuer
* Borrowing Limits: The DIP Term Sheet contemplates $350
million of DIP Loans (including $100 million under the DIP LC
Facility) being made available upon entry of the Interim Order
(and the satisfaction of all other closing conditions) and an
additional $450 million (including the remaining $125 million
under the DIP LC Facility) upon entry of a Final Order (and the
satisfaction of all other closing conditions).
* Budget: WEC U.S. will provide the DIP Agent 13-week cash flow
forecasts on a rolling 13-week basis (updated every four weeks).
* Use of DIP Proceeds: The DIP Facility proceeds shall be used
(i) for working capital and general corporate purposes, (ii) to
make revolving loans under the EMEA Intercompany Facility; (iii)
to pay other costs incurred in connection with the chapter 11
cases; and (iv) to fund cash collateral necessary for LCs.
* Interest Rates:
(1) DIP Loans shall accrue interest at 5.25% per annum
plus the Base Rate for Base Rate loans, or 6.25% per annum plus
the LIBOR Rate for LIBOR Loans.
(2) Default Interest additional 2% per annum.
* Expenses and Fees:
(1) Unused Commitment Fees: 0.50% per annum for undrawn DIP
Loans.
(2) OID: 2.50%.
(3) Early Exit Fees: 103% (first 6 months); 102% (following
6 months); par (at Scheduled Termination Date or
thereafter).
(4) LC Facility Fees: Fronting fee of 0.125% payable to the
LC Issuer on outstanding face amount of each LC.
(5) Extension Fee: 3.00% (12 month extension).
(6) Expense Reimbursement Deposit: $750,000.
* Maturity Date: The "Scheduled Termination Date" is 12 months
after the Closing Date, subject to the Borrower's option to extend
the term by additional 12 months.
* Prepayments: The net cash proceeds (after any applicable
taxes) from any non-ordinary course asset sale by (a) the Borrower
or any of its subsidiaries, or (b) any EMEA Entity or any of its
subsidiaries (to the extent such assets secure the EMEA
Intercompany Facility), must be used to repay the DIP Loans.
* Collateral and Priority:
-- Collateral - all owned or hereafter acquired assets and
property of the Borrower and DIP Guarantors (including, without
limitation, inventory, accounts receivable, property, plant,
equipment, rights under leases and other contracts, patents,
copyrights, trademarks, tradenames and other intellectual property
and capital stock of subsidiaries), and the proceeds thereof (the
"Collateral").
-- Priority - the DIP Lender and DIP Agent shall be granted
the following on the Collateral:
a) Priming Liens - perfected first priority priming
security interest and lien; ("Priming Liens")
b) First Priority Liens - a perfected first priority
security interest and lien on the Collateral to the extent such
Collateral is not subject to valid, perfected and nonavoidable
liens ("First Priority Liens");
c) Junior Liens -junior perfected security interest and
lien on the Collateral of to the extent such Collateral is subject
to valid, perfected and unavoidable liens in favor of third
parties that were in existence immediately prior to the
Petition Date, or to valid and unavoidable liens in favor of third
parties that were in existence immediately prior to the Petition
Date that were perfected subsequent to the Petition Date ("Junior
Liens", collectively with the First Priority Liens and Priming
Liens, the "DIP Liens"); and
d) Superpriority Expense Claims - superpriority
administrative expense claims in the chapter 11 cases of the
Debtors.
e) LC Liens - the DIP LC Facility shall be secured solely
by the amounts on deposit in a letter of credit cash collateral
account as more fully described in the DIP Term Sheet.
* Material Conditions to Closing
-- Execution of DIP Term Sheet.
-- Occurrence of Petition Date and entry of "first day
orders", including a cash management order that is reasonably
satisfactory to the DIP Agent.
-- Entry of Interim Order authorizing DIP Loans no later than
three business days following Petition Date.
-- The payment of reasonable and documented costs , fees, and
expenses set forth in the DIP Loan Documents
-- The obligations of the Loan Parties under the DIP LC
Facility will be secured and perfected pursuant to the Interim
Order.
-- The DIP Agent shall have valid and perfected liens on the
security interest in the Collateral.
* Covenants
A. Negative Covenants - the DIP Loan Documents will contain
the following negative covenants:
-- Limitations on indebtedness.
-- Limitations on liens.
-- Limitations on sale and leaseback transactions.
-- Limitations on investments, loans and advances.
-- Limitations on mergers, consolidations, sales of assets
and acquisitions;
-- Limitations on dividends and distributions.
-- Limitations on transactions with affiliates.
-- Limitations on changes in business.
-- Limitations on the (i) payment and modification of
subordinated or other prepetition indebtedness, except in the case
of prepetition debt, pursuant to "first day" or other orders
entered by the Bankruptcy Court that are in form and substance
satisfactory to the DIP Agent, and (ii) modification of
certificate of incorporation, by-laws and certain other
agreements, etc.
-- Limitations on (i) AP1000 Projects shut-down costs limited
to $125 million, and (ii) outstanding amounts under the
Intercompany Facility, in each case, in accordance with the
business plan.
-- Limitations on hedging agreements.
-- Limitations on other "designated senior debt".
-- Limitations on changes to fiscal year and accounting.
B. Financial Covenants - the DIP Facility will contain the
following financial covenants:
a) Minimum Liquidity. Minimum unrestricted cash and cash
equivalents of the Company and the US Guarantors, on a
consolidated basis, of $100 million, tested on a weekly basis.
b) Business Plan. Receipt of a Business Plan, in form and
substance reasonably acceptable to the Required Lenders,
within 120 days of the DIP Closing Date.
c) Minimum EBITDA. Initially tested as of the last day of
each fiscal month (commencing on the month ended Sept. 30, 2017)
with applicable testing periods commencing on Aug. 1, 2017 and
ending on the applicable month then ended. Commencing on the test
period ended March 31, 2018 and for each month ended thereafter,
LTM testing period (the "LTM Test"). No less than the greater of
(a) solely with respect to any LTM Test, $350 million and (b) the
corresponding amount set forth in the Business Plan plus a cushion
of 15%.
* Events of Default. Material events of default include:
-- Failure to file an acceptable Plan of Reorganization prior
to the earlier of (a) 18 months after the Petition Date, or (b)
the period in which the Debtors have the exclusive right to file a
chapter 11 plan under section 1121 of the Bankruptcy Code
-- The commencement of an insolvency proceeding by an EMEA
entity.
* Milestones: No milestones related to assets sales or a plan
of reorganization.
* Carve-Out: The DIP Liens and DIP Superpriority Claims shall
be subject and subordinate to a Carve-Out with respect to
Collateral (other than amounts on deposit in the LC Cash
Collateral Account), which shall be comprised of:
a) fees required to be paid to the Clerk of the Court and
U.S. Trustee;
b) reasonable and documented fees of a section 726(b)
trustee, not to exceed $250,000;
c) all accrued and unpaid reasonable fees, costs and
expenses incurred by person or firmed retained by the Debtors and
the Committee.
Following notice from the DIP Agents of written notice that an
Event of Default has occurred and has triggered the Carve-Out, the
payment of Professional Fees may not exceed $8 million in the
aggregate after the receipt of such notice; provided that the
Carve-Out shall not contain any cap on any "pipeline" expenses of
Debtor's professionals.
* Funding of Non- Debtor Affiliates: The Debtors will provide a
maximum of $375 million in intercompany advances to EMEA
Intercompany Borrowers for the benefit of the EMEA Entities.
Pursuant to the EMEA Intercompany Facility, WEC U.S. may advance
amounts (including any proceeds of the DIP Loans) up to $375
million (but only $300 million initially) to the EMEA Intercompany
Borrowers (inclusive of $75 million under the DIP LC Facility (but
only $50 million initially)), to be (i) guaranteed the EMEA
Entities, and (ii) secured by the assets of the EMEA Entities in
each case, to the extent required by the applicable local
jurisdiction requirements set forth on Schedule 1 to the DIP Term
Sheet. The intercompany advances shall be evidenced by a
Liquidity Facility Agreement.
* Liens on Avoidance Actions: Upon entry of the Final Order,
First Priority Liens shall attach to Avoidance Actions
* Waiver or Modification of the Automatic Stay: The automatic
stay is modified as necessary to (i) permit the granting of DIP
Liens and to incur all DIP Obligations under the Term Sheet and
the other DIP Loan Documents and (ii) authorize the DIP Agent to
retain and apply payments.
* Waiver or Modification of Applicability of Non- Bankruptcy
Law Relating to the Perfection or Enforcement of a Lien: The
Interim Order is sufficient and conclusive evidence of the
validity, perfection and priority of the DIP Liens without the
necessity of filing or recording any financing statement, deed of
trust, mortgage, or other instrument or document which may
otherwise be required under the law of any jurisdiction or the
taking of any other action to validate or perfect the DIP Liens or
to entitle the DIP Liens to the priorities granted in the Interim
Order.
* Section 506(c) Waiver: No expenses of administration shall be
charged against or recovered from the Collateral pursuant to
section 506(c).
* Section 552(b) Waiver: None.
* Release, Waivers or Limitation on any Claim or Cause of
Action: None.
Westinghouse's Immediate Need for DIP Financing
"The Debtors require the financing available under the DIP
Facility to have sufficient liquidity to operate their business
and administer their estates during these chapter 11 cases. As a
result of the dramatic liquidity drain caused by Westinghouse's
obligations related to construction of the U.S. AP1000 Projects,
as of the Petition Date, the Debtors do not have sufficient
liquidity to support their ongoing operations. In addition to
funding their own operations, the Debtors need to access the DIP
Facility to provide funding to the EMEA Entities to maintain the
solvency and operations of such entities to avoid value
destructive actions taken by such entities' stakeholders. Absent
authority to access DIP Financing, even for a limited period of
time, Westinghouse (including the EMEA Entities) would not be able
to operate its businesses, deteriorating value and causing
immediate and irreparable harm to the Debtors' estates and
creditors," the Debtors' counsel, Garrett A. Fail, explains.
Immediate Need to Preserve Debtors' Operations
Mr. Fail further states, "Without new financing, the Debtors are
currently unable to pay their debts as they become due.
Accordingly, the orderly continuation of the Debtors' business
depends on their ability to access the DIP Facility. The DIP
Facility will allow the Debtors to, among other things, make
payroll and satisfy other working capital and general corporate
purposes of the Debtors, including making essential payments to
suppliers and regulatory agencies."
"Continuation of the Debtors' core operations are particularly
crucial at this time given (i) the uncertainty surrounding the
construction of the U.S. AP1000 Projects and their impact on the
Debtors' core businesses, and (ii) that the Debtors' Operating
Plant Business is currently in the midst of "outage season," a
high demand period where the Debtors' customers are dependent on
the Debtors to provide maintenance and safety inspections at
nuclear power plants. If the Debtors fail to meet this heightened
demand from their customers, the value of their business will
significantly deteriorate as customers will be forced to seek
services from other sources. In addition to such commercial
reasons, given the nature of Westinghouse's business, any
interruption of the Debtors' ability to pay vendors and operate
their businesses could potentially (i) cause environmental hazards
or pose significant risk to the environment, (ii) pose a threat to
health and public safety, or (iii) compromise the Debtors'
customers' ability to provide power to the United States
electrical grid."
"Access to the DIP Facility is essential for the Debtors to assure
their employees, customers, and vendors, as well as the applicable
regulatory and governmental bodies, that the Debtors have
sufficient capital to continue their operations in the ordinary
course of business during the pendency of these chapter 11 cases."
Immediate Need to Preserve Value of the EMEA Entities
"Equally crucial to the value of the Debtors' estates and their
reorganization efforts is preserving the value of the EMEA
Entities. The Debtors and its EMEA Entities depend heavily on one
another for business support relating to operations, intellectual
property, credit support and guarantees, and manage certain
business lines on a consolidated global basis, and as such, have
significant synergies that in effect create a globally integrated
and interdependent nuclear service provider. The various
Westinghouse entities across the globe rely on one another to
share professionals, licenses, equipment, and materials in
providing services their customers."
"Furthermore, the Debtors have historically relied on the EMEA
Entities as (i) a significant source of revenue through the
intercompany purchase of goods and services pursuant to a transfer
pricing program, and (ii) a cash-flow positive contributor of
liquidity to Westinghouse, and subsequently, to the Debtors. As a
result, the value of the Debtors' estates is dependent upon the
EMEA Entities maintaining their operations and going concern
value."
"Similarly, the value of the EMEA Entities coincides with the
Debtors' value -- the two organizational chains are co-dependent.
Until recently, WEC U.S. and WEK UK and certain of their
subsidiaries were party to a cash pooling arrangement (the "Global
Cash Pool") that allowed the parties to efficiently transfer cash
to where it was needed in the Westinghouse organization.
Withdrawals from the Global Cash Pool generated receivables to the
Global Cash Pool owed by withdrawing entities and deposits into
the Global Cash Pool generated payables owed to the depositing
entities. Certain of the EMEA Entities were dependent on the
Global Cash Pool as a source of liquidity. In recent months, as a
result of Westinghouse's deteriorating liquidity, the balance of
the Global Cash Pool diminished, causing liquidity issues for a
number of the EMEA Entities participants, and raising concerns
about their solvency going forward."
"The combination of dwindling liquidity in the Global Cash Pool
and the constraints on issuing LCs as a result of the defaults
under the LC Agreement, caused certain EMEA Entities to express
significant concern regarding their ability to continue to operate
as a going concern and/or satisfy certain financial assurance
requirements with respect to pension obligations and maintaining
nuclear regulatory licenses. Although the Debtors have been
working closely with the EMEA Entities to manage their liquidity
concerns and provide assurance to the relevant regulatory bodies,
a financing solution is required."
"Given the Debtors' current liquidity situation, access to the DIP
Facility to provide the EMEA Intercompany Facility is necessary to
ensure the orderly continuation of EMEA Entities' operations and
the preservation of the EMEA Entities' going concern value. The
EMEA Intercompany Facility will ensure the financial stability of
the EMEA Entities throughout the Debtors' chapter 11 cases, and
allow the Debtors to develop and implement a global restructuring
solution aimed at maximizing the value of the Westinghouse
enterprise for the benefit of the Debtors' estates."
WESTINGHOUSE ELECTRIC: Filing Won't Impact EMEA Operations
----------------------------------------------------------
Westinghouse Electric Company, LLC, a U.S. company, and certain of
its subsidiaries and affiliates, on March 29 filed voluntary
petitions under Chapter 11 of the U.S. Bankruptcy Code. The
Company is seeking to undertake a strategic restructuring as a
result of certain financial and construction challenges in its
U.S. AP1000 [(R)] power plant projects. Westinghouse has obtained
$800 million in debtor-in-possession (DIP) financing from a third-
party lender to help fund and protect its core businesses during
its reorganization. The Chapter 11 filings took place in the U.S.
Bankruptcy Court for the Southern District of New York in New York
City.
"[Wednes]day, we have taken action to put Westinghouse on a path
to resolve our AP1000 financial challenges while protecting our
core businesses," said Interim President & CEO Jose Emeterio
Gutierrez. "We are focused on developing a plan of reorganization
to emerge from Chapter 11 as a stronger company while continuing
to be a global nuclear technology leader."
The DIP financing will fund Westinghouse's core businesses of
supporting operating plants, nuclear fuel and components
manufacturing and engineering as well as decommissioning,
decontamination, remediation and waste management as the company
works to reorganize around these strong business units. Existing
letters of credit have been cash collateralized in full and will
remain in place. The financing will also allow for new letters of
credit to be issued.
The Company has reached an agreement with each owner of the U.S.
AP1000 projects to continue these projects during an initial
assessment period. Westinghouse remains committed to its AP1000
technology as the industry's premier Gen III+ nuclear power plant
design, and will continue its existing projects in China as well
as pursuit of other potential projects in the future.
Westinghouse's operations in its Asia and Europe, the Middle East
and Africa (EMEA) Regions are not impacted by the Chapter 11
filings. Customers in those regions will continue to receive the
high-quality products and services they have come to expect in the
usual course as the regions will also be supported by the DIP
financing.
As part of [Wednes]day's Chapter 11 filings, Westinghouse also
filed several "first day" motions with the Court to ensure
business continuity through payment of employee salaries, wages
and benefits, as well as pay its suppliers for the delivery of
services. The motions are expected to be approved by the
Bankruptcy Court. Westinghouse is represented by Weil, Gotshal &
Manges LLP in its Chapter 11 cases.
About Westinghouse Electric
Westinghouse Electric Company LLC --
http://www.westinghousenuclear.com/-- is a U.S. based nuclear
power company founded in 1999 that provides design work and
start-up help for new nuclear power plants and makes many of the
components. Westinghouse manufactures and supplies the commercial
fuel products needed to run the plants, and it offers training,
engineering, maintenance, and quality management services. Almost
50% of nuclear power plants around the world and about 60% of U.S.
plants are based on Westinghouse's technology. Westinghouse's
world headquarters are located in the Pittsburgh suburb of
Cranberry Township, Pennsylvania. Westinghouse has 12,000
employees worldwide.
On Oct. 16, 2006, Westinghouse Electric was sold for $5.4 billion
to a group comprising of Toshiba (77% share), partners The Shaw
Group (20% share), and Ishikawajima-Harima Heavy Industries Co.
Ltd. (3% share). After purchasing part of Shaw's stake in 2013,
Japan-based conglomerate Toshiba obtained ownership of 87% of
Westinghouse.
Amid cost overruns at U.S. nuclear reactors it was Building, on
March 29, 2017, Westinghouse Electric Company LLC, along with 29
affiliates, filed voluntary petitions for relief under Chapter 11
of the United States Bankruptcy Code. The cases are pending joint
administration under Case No. 17-10751 before the Honorable
Michael E. Wiles (Bankr. S.D.N.Y.).
About Toshiba
Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- is
a Japan-based manufacturer involved in five business segments.
The Digital Products segment offers cellular phones, hard disc
devices, optical disc devices, liquid crystal televisions, camera
systems, digital versatile disc (DVD) players and recorders,
personal computers (PCs) and business phones, among others. The
Electronic Device segment provides general logic integrated
circuits (ICs), optical semiconductors, power devices, large-scale
integrated (LSI) circuits for image information systems and liquid
crystal displays (LCDs), among others. The Social Infrastructure
segment offers various generators, power distribution systems,
water and sewer systems, transportation systems and station
automation systems, among others. The Home Appliance segment
offers refrigerators, drying machines, washing machines, cooking
utensils, cleaners and lighting equipment. The Others segment
leases and sells real estate.
As reported in the Troubled Company Reporter-Asia Pacific on Dec.
30, 2016, Moody's Japan K.K. downgraded Toshiba Corporation's
corporate family rating (CFR) and senior unsecured rating to
'Caa1' from 'B3'. Moody's has also downgraded Toshiba's
subordinated debt rating to 'Ca' from 'Caa3', and affirmed its
commercial paper rating of Not Prime. At the same time, Moody's
has placed Toshiba's 'Caa1' CFR and long-term senior unsecured
bond rating, as well as its 'Ca' subordinated debt rating under
review for further downgrade.
The TCR-AP reported on March 21, 2017, that S&P Global Ratings
said it has lowered its long-term corporate credit rating on
Japan-based capital goods and diversified electronics company
Toshiba Corp. two notches to 'CCC-' from 'CCC+' and lowered the
senior unsecured debt rating three notches to 'CCC-' from 'B-'.
Both ratings remain on CreditWatch with negative implications.
Also, S&P is keeping its 'C' short-term corporate credit and
commercial paper program ratings on the company on CreditWatch
negative. The long- and short-term ratings on Toshiba have
remained on CreditWatch with negative implications since December
2016, when S&P also lowered the long-term ratings because of the
likelihood that the company might recognize massive losses in its
U.S. nuclear power business; S&P kept them on CreditWatch
negative when it lowered the long- and short-term ratings in
January 2017.
WESTINGHOUSE ELECTRIC: Case Summary & 30 Top Unsecured Creditors
----------------------------------------------------------------
Debtor affiliates filing separare Chapter 11 bankruptcy petitions:
Debtor Case No.
------ --------
Westinghouse Electric Company LLC 17-10751
1000 Westinghouse Drive
Cranberry Township, PA 16066
Toshiba Nuclear Energy Holdings (UK) Limited 17-10750
CE Nuclear Power International, Inc. 17-10752
Fauske and Associates LLC 17-10753
Field Services, LLC 17-10754
Nuclear Technology Solutions LLC 17-10755
PaR Nuclear Holding Co., Inc. 17-10756
PaR Nuclear, Inc. 17-10757
PCI Energy Services LLC 17-10758
Shaw Global Services, LLC 17-10759
Shaw Nuclear Services, Inc. 17-10760
Stone & Webster Asia Inc. 17-10761
Stone & Webster Construction Inc. 17-10762
Stone & Webster International Inc. 17-10763
Stone & Webster Services LLC 17-10764
TSB Nuclear Energy Services Inc. 17-10765
WEC Carolina Energy Solutions, Inc. 17-10766
WEC Carolina Energy Solutions, LLC 17-10767
WEC Engineering Services Inc. 17-10768
WEC Equipment & Machining Solutions, LLC 17-10769
WEC Specialty LLC 17-10770
WEC Welding and Machining, LLC 17-10771
WECTEC Contractors Inc. 17-10772
WECTEC Global Project Services Inc. 17-10773
WECTEC LLC 17-10774
WECTEC Staffing Services LLC 17-10775
Westinghouse Energy Systems LLC 17-10776
Westinghouse Industry Products International Company17-10777
Westinghouse International Technology LLC 17-10778
Westinghouse Technology Licensing Company LLC 17-10779
Type of Business: The Debtors and their non-debtor affiliates
operate a global business that provides its
products and services to customers worldwide.
Westinghouse provides design and engineering
services, decommissioning services, and a
variety of other critical operations to
both new plant construction as well as the
existing operating fleet of nuclear power
plants. Due to the world-class quality and
breadth of the nuclear products and services
Westinghouse provides, the Company serves more
than half of the nuclear power plants in the
world.
Web site: http://www.westinghousenuclear.com
Chapter 11 Petition Date: March 29, 2017
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Hon. Michael E. Wiles
Debtors' Counsel: Gary T. Holtzer, Esq.
Robert J. Lemons, Esq.
Garrett A. Fail, Esq.
David N. Griffiths, Esq.
WEIL, GOTSHAL & MANGES LLP
767 Fifth Avenue
New York, New York 10153
Tel: (212) 310-8000
Fax: (212) 310-8007
E-mail: gary.holtzer@weil.com
robert.lemons@weil.com
garrett.fail@weil.com
david.griffiths@weil.com
Toshiba Nuclear
Energy Holdings
(UK) Ltd.'s
Counsel: Albert Togut, Esq.
Brian F. Moore, Esq.
Kyle J. Ortiz, Esq.
TOGUT, SEGAL & SEGAL LLP
One Penn Plaza, Suite 3335
New York, New York 10119
Tel: (212) 594-5000
Fax: (212) 967-4258
E-mail: altogut@TeamTogut.com
bmoore@teamtogut.com
kortiz@teamtogut.com
Debtors'
Financial
Advisor: ALIXPARTNERS, LLP
909 Third Avenue
New York, New York 10022,
Debtors'
Investment
Banker: PJT PARTNERS INC.
280 Park Avenue
New York, New York 10017
Debtors'
Claims &
Noticing
Agent: KURTZMAN CARSON CONSULTANTS LLC
2335 Alaska Avenue
El Segundo, CA 90245
Tel: (877) 634-7177
Total Assets: $4.32 billion as of Feb. 28, 2017
Total Debt: $9.39 billion as of Feb. 28, 2017
The petitions were signed by Lisa J. Donahue, chief transition and
development officer.
Debtors' Consolidated List of 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Fluor Enterprises Inc (FEI) Trade Debts $193,891,735
100 Fluor Daniel Drive
Greenville, SC 29607
Name: Pat Selvaggio
Email: Pat.Selvaggio@Fluor.com
CB&I Deferred $145,000,000
One CB&I Plaza, 2103 Purchase Price
Research Forest Drive
The Woodlands, TX 77380
Name: Lee Pressley
Tel: (815) 342-3905
Email: lpresley@CBI.com
CB&I Laurens Inc. Trade Debts $32,806,489
366 Old Airport Rd
Laurens, SC 29360
Name: Rick Crow
Tel: 864-683-3962
Email: Rick.crow@cbi.com
Newport News Trade Debts $18,463,053
Industrial Corp.
182 Enterprise Dr
Newport News, VA 23603-1368
Name: Steve Napiecek
Tel: 757-870-2463
Email: Steve.Napiecek@hii-nns.com
Nuclear Fuel Services Inc. Trade Debts $10,086,210
1205 Banner Hill Rd
Erwin, TN 37650-9318
Name: Frank Masseth
Tel: 423-735-5661
Email: fxmasseth@nuclearfuelservices.com
Vigor Trade Debts $8,345,458
9460 SE Lawnfield Rd.
Clackamas, OR 97015
Name: Corey Yraguen
Tel: 503-314-0859
Email: Corey.Yraguen@vigor.net
Thompson Construction Group Inc. Trade Debts $8,027,241
100 North Main Street
Sumter, SC 29150
Name: William Gryant
Tel: 864-643-9592
Email: bbryant@thompsonind.com
RSCC Wire & Cable LLC Trade Debts $7,931,485
20 Bradley Park Rd
East Granby, CT 06026-9789
Name: Mark St. Onge
Tel: 203-645-2275
Email: Mark.stonge@r-scc.com
Curtiss Wright Trade Debts $7,782,122
13925 Ballantyne Corporate
Place, Suite 400
Charlotte, NC 28277
Name: David C. Adams
Tel: 704-869-4667
Email: dadams@CURTISSWRIGHT.com
SSM Industries Inc. Trade Debts $5,479,722
3401 Grand Ave
Pittsburgh, PA 15225-1507
Name: Matt Gorman
Tel: 412-777-2101, ext 320
Email: mgorman@ssmi.biz
Aecon Industrial Trade Debts $5,465,543
150 Sheldon Drive
Cambridge, UK N1R7K9
Name: Ian Turnbull
Tel: 519-240-5487
Email: iturnbull@aecon.com
Williams Specialty Trade Debts $5,153,942
Services LLC
100 Crescent Centre Parkway
Tucker, GA 30084
Name: Douglas Page
Tel: 770-595-7691
Email: dpage@wisgrp.com
GEXPRO Trade Debts $5,087,626
1000 Bridgeport Ave
Shelton, CT 06484
Name: Dan Collins
Tel: 412-877-0267
Email: Dan.Collins@gexpro.com
SMCI Trade Debts $5,012,335
4015 Drane Field Rd
Lakeland, FL 33811-1290
Name: Bob Marshall
Tel: 423-413-1582
Email: Bob.marshall@metaltek.com
Research Cottrell Trade Debts $4,386,505
Cooling Inc.
58 East Main Street
Somerville, NJ 08876
Name: John Urbaniak
Email: John.urbaniak@rc-cooling.com
Garney Companies Inc. Trade Debts $3,762,101
5895 Shiloh Road, Suite 114
Alpharetta, GA 30004
Name: Greg Harris
Tel: (770) 754-4141
Email: gharris@garney.com
Accenture LLP Trade Debts $3,494,139
K&L Gates Center
210 6th Ave. 25th Floor
Pittsburg, PA 15222-2614
Name: Mark Sobota
Tel: 724-787-9807
Email: mark.sobota@accenture.com
Owen Industries Inc. Trade Debts $3,410,946
501 Avenue H.
Carter Lake, IA 51510
Name: Tyler Owen
Tel: 402-290-1481
Email: towen@owenind.com
Dubose National Energy Service Trade Debts $3,358,718
900 Industrial Dr
Clinton, NC 28328-8068
Name: Richard Rogers
Tel: 910-590-2151
Email: Richard.rogers@dubosenes.com
Steelfab Inc. Trade Debts $3,151,617
8623 Old Dowd Rd.
Charlotte, NC 28214
Name: Glen Sherrill
Tel: 704-604-6603
Email: GSherrill@steelfab-inc.com
CSC Computer Sciences Corp Trade Debts $3,090,237
1775 Tysons Blvd
McLean, VA 22102-4284
Name: Rick Beroth
Tel: 336-399-9825
Email: rberoth@csc.com
Envirovac Holdings LLC Trade Debts $3,040,135
486 Old Louisville Road
Garden City, GA 31408
Name: Ann Brown
Tel: 912-964-0660
Email: ann@envirovac.us
American Equipment Co. Trade Debts $3,018,565
2106 Anderson Road
Greenville, SC 29611
Name: Dean Smith
Tel: 864.354.9520
Email: dean.smith@ameco.com
Vallen Trade Debts $2,948,212
900 Sunset Blvd
West Columbia, SC 29169-6860
Name: Cantey Haile
Email: Cantey.Haile@vallen.com
HERC Rentals Trade Debts $2,846,014
6230 S Loop E
Houston, TX 75265
Name: James Fiscus
Tel: 832-414-0236
Email: james.fiscus@hercrentals.com
Siemens Industry Inc. Trade Debts $2,824,817
4620 Forest Ave
Cincinnati, OH 45212-3306
Name: Scott Conner
Tel: 540-314-7009
Email: scott.conner@siemens.com
Calvert Company Incorporated Trade Debts $2,614,441
3100 West 7th Street, Suite 500
Fort Worth, TX 76107
Name: Douglas Calvert
Tel: (912) 293-2278
Email: sambarr@azz.com
Jones Lang Lasalle Trade Debts $2,582,841
Americas Inc.
200 E Randolph St Ste. 4300
Chicago, IL 60601-6519
Name: Matt Gonterman
Tel: 312 228 2142
Email: matt.gonterman@am.jll.com
Eaton Corp Trade Debts $2,475,281
8609 Six Forks Rd
Raleigh, NC 27615-2966
Name: Heath B. Monesmith
Tel: (440) 523-4488
Email: heathbmonesmith@eaton.com
Martin Marietta Materials Trade Debts $2,434,753
Dba Martin Marietta Aggregates
Columbia, SC 29033
Name: Roselyn R. Bar
Tel: (919) 783-4603
Email: roselyn.bar@martinmarietta.com
=================
S I N G A P O R E
=================
CHINA FISHERY: Wants Exclusivity Extended for Another 9 Months
--------------------------------------------------------------
China Fishery Group Limited (Cayman), et al., filed with the U.S.
Bankruptcy Court for the Southern District of New York a third
motion seeking extension of their exclusive periods.
The Debtors are seeking an extension of their exclusive periods to
file a Chapter 11 plan and solicit acceptances of that plan
through and including December 30, 2017, and February 28, 2018,
respectively.
According to the Debtors, the Chapter 11 Trustee has advised them
that he believes a nine-month extension of the Exclusive Periods
is necessary to achieve the best possible value for creditors of
CFG Peru Investments Pte. Limited (Singapore) ("CFG Peru
Singapore"). The Debtors reiterate that the Peruvian Fishmeal
Operating Companies are their most significant asset and will be
the cornerstone of any potential restructuring. The Debtors and
Chapter 11 Trustee have agreed to work together on sharing
information and keeping open lines of communication.
Moreover, on January 4, 2017 -- at the hearing on the Debtors'
last request to extend exclusivity -- the Chapter 11 Trustee
indicated that he would issue a report on the finances and
operations of the Peruvian Fishmeal Operating Companies. The
Chapter 11 Trustee's report will be valuable to all parties,
including the Debtors, in evaluating the best path for the
Peruvian Fishmeal Operating Companies and, as a result, the rest
of the Debtors.
The Debtors assert that although they have made progress in the
prosecution of their Chapter 11 Cases, it is clear that additional
time is necessary to resolve a number of remaining contingencies,
including: (a) the Chapter 11 Trustee's efforts to normalize the
operations of the Peruvian Fishmeal Operating Companies and
analyze the value thereof; (b) the issuance of the Chapter 11
Trustee's report; (c) issuance of a report by RSM Corporate
Advisory (Hong Kong) Limited, the forensic accountant conducting
an investigation on behalf of the independent review committees of
the Pacific Andes International Holdings Limited (Bermuda) (or
"PAIH") and Pacific Andes Resources Development Limited (Bermuda)
(or "PARD") boards of directors; (d) analyzing intercompany
claims; (e) analyzing filed claims; and (f) formulating,
negotiating, and implementing a restructuring plan with the
collaboration of the Chapter 11 Trustee and key economic
stakeholders.
The Debtors currently have exclusivity to file a plan until
March 31, absent an extension.
A hearing for April 12 has been set to consider the Debtors'
request.
About China Fishery Group
China Fishery Group Limited (Cayman) and its affiliates sought
protection under Chapter 11 of the Bankruptcy Code (Bankr.
S.D.N.Y. Lead Case No. 16-11895) on June 30, 2016. The petition
was signed by Ng Puay Yee, chief executive officer. The cases are
assigned to Judge James L. Garrity Jr.
At the time of the filing, China Fishery Group estimated its
assets at $500 million to $1 billion and debts at $10 million to
$50 million.
Weil, Gotshal & Manges LLP has been tapped to serve as lead
bankruptcy counsel for China Fishery and its affiliates other than
CFG Peru Investments Pte. Limited (Singapore). Weil Gotshal
replaces Meyer, Suozzi, English & Klein, P.C., the law firm
initially hired by the Debtors. The Debtors have also tapped
Klestadt Winters Jureller Southard & Stevens, LLP as conflict
counsel; Goldin Associates, LLC, as financial advisor; and RSR
Consulting LLC as restructuring consultant.
On November 10, 2016, William Brandt, Jr. was appointed as Chapter
11 trustee for CFG Peru Investments Pte. Limited (Singapore), one
of the Debtors. Skadden, Arps, Slate, Meagher & Flom LLP serves
as the trustee's bankruptcy counsel; Hogan Lovells US LLP serves
as special counsel; and Quinn Emanuel Urquhart & Sullivan, LLP
serves as special litigation counsel.
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
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about which we report.
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Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
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firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Julie Anne L. Toledo, Ivy Magdadaro and Peter
A. Chapman, Editors.
Copyright 2017. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
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*** End of Transmission ***