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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
Thursday, August 10, 2017, Vol. 20, No. 158
Headlines
A U S T R A L I A
MESOBLAST LIMITED: Ends Second Quarter With $45.7M in Cash
C H I N A
AGILE GROUP: Moody's Assigns B1 Rating to USD Notes; Outlook Pos.
TIMES PROPERTY: 1H Results Support Pos. Outlook on Moody's B1 CFR
I N D I A
FASTRACK COMMUNICATIONS: CRISIL Reaffirms D Rating on INR55M Loan
FROST FALCON: CRISIL Reaffirms D Rating on INR5.0MM Cash Loan
INTEGRATED CAPS: CRISIL Reaffirms 'D' Rating on INR17MM Term Loan
JBS ENGINEERING: CRISIL Reaffirms 'D' Rating on INR6.7MM Loan
KHANNA BUILDERS: CRISIL Reaffirms 'D' Rating on INR20MM Loan
KOSHIYA ENTERPRISE: CRISIL Reaffirms 'D' Rating on INR15MM Loan
KSHEERAABD CON: Ind-Ra Moves BB- Issuer Rating to Not Cooperating
K S R GRANITE: CRISIL Reaffirms 'D' Rating on INR15MM LT Loan
LINGAYA'S SOCIETY: CRISIL Reaffirms D Rating on INR22.47MM Loan
PIONEER TORSTEEL: Ind-Ra Moves D Issuer Rating to Not Cooperating
REGENT BEERS: Ind-Ra Assigns 'BB' Issuer Rating, Outlook Stable
SHAH BHOGILAL: Ind-Ra Moves BB Issuer Rating to Not Cooperating
SREEDEVI PLASTI: Ind-Ra Moves D Issuer Rating to Not Cooperating
VIJAY TEXTILES: Ind-Ra Downgrades Long-Term Issuer Rating to 'D'
VIMAL CHHAGANLAL: CRISIL Reaffirms 'D' Rating on INR5MM Cash Loan
I N D O N E S I A
GAJAH TUNGGAL: S&P Upgrades CCR to 'B-' on Successful Bond Deal
S O U T H K O R E A
MAGNACHIP: 2Q 2017 Results Consistent with Moody's B3 CFR
- - - - -
=================
A U S T R A L I A
=================
MESOBLAST LIMITED: Ends Second Quarter With $45.7M in Cash
----------------------------------------------------------
Mesoblast Limited filed with the Securities and Exchange
Commission its quarterly report for entities subject to Listing
Rule 4.7B for the quarter ended June 30, 2017.
At the beginning of the quarter, Mesoblast had US$69.12 million in
cash and cash equivalents. Net cash used in operating activities
was US$23.43 million. Net cash from financing activities was
US$105,000. At June 30, 2017, the Company had US$45.76 million in
cash and cash equivalents.
Mesoblast is in advanced negotiations with selected pharmaceutical
companies with respect to potential partnering of certain Tier 1
product candidates. If Mesoblast enters into a binding
transaction in the next quarter, Mesoblast expects that one effect
of the transaction is that its cash reserves are likely to
increase. Mesoblast does not make any representation or give any
assurance that such a binding transaction will be concluded.
In addition, Mesoblast expects its cash reserves to increase in
the next quarter as we expect to receive the following income:
-- royalty income earned on sales of TEMCELL HS Inj. in Japan,
and
-- interest income.
Mesoblast has established an equity facility for up to A$120
million/US$90 million over the next two years, to be used at its
discretion to provide additional funds as required.
A full-text copy of the Quarterly Report is available for free at:
https://is.gd/lJ7IvQ
About Mesoblast Ltd.
Melbourne, Australia-based Mesoblast Limited (ASX:MSB;
Nasdaq:MESO) develops cell-based medicines. The Company has
leveraged its proprietary technology platform, which is based on
specialized cells known as mesenchymal lineage adult stem cells,
to establish a broad portfolio of late-stage product candidates.
Mesoblast's allogeneic, 'off-the-shelf' cell product candidates
target advanced stages of diseases with high, unmet medical needs
including cardiovascular diseases, immune-mediated and
inflammatory disorders, orthopedic disorders, and
oncologic/hematologic conditions.
Mesoblast reported a loss before income tax of $90.82 million for
the year ended June 30, 2016, compared to a loss before income tax
of $96.24 million for the year ended June 30, 2015. As of Dec.
31, 2016, Mesoblast had $660.9 million in total assets, $150.4
million in total liabilities, and $510.51 million in total equity.
PricewaterhouseCoopers, in Melbourne, Australia, issued a "going
concern" qualification on the consolidated financial statements
for the year ended June 30, 2016, citing that the Company has
suffered recurring losses from operations that raise substantial
doubt about its ability to continue as a going concern.
=========
C H I N A
=========
AGILE GROUP: Moody's Assigns B1 Rating to USD Notes; Outlook Pos.
-----------------------------------------------------------------
Moody's Investors Service has assigned a B1 senior unsecured
rating to the USD notes to be issued by Agile Group Holdings
Limited (Ba3 positive).
The ratings outlook is positive.
Agile plans to use the proceeds from the proposed notes mainly to
refinance existing indebtedness.
RATINGS RATIONALE
"The proposed notes issuance will not have a material impact on
Agile's credit metrics, because the proceeds will be used to repay
its 2014 USD notes," says Kaven Tsang, a Moody's Vice President
and Senior Credit Officer.
Moody's expects the company's revenue/adjusted debt will rise to
around 90%-95% and EBIT/interest to around 3.5x-4.0x over the next
12-18 months from 90% and 3.1x respectively in 2016. These ratios
are strong for its Ba3 corporate family rating (CFR).
In addition, the proposed issuance will mildly lengthen the
companies' debt maturity profile and lower its average funding
cost.
Agile's Ba3 CFR reflects the company's (1) strong market position
and solid track record of property development in Guangdong
Province, (2) history of support from its largest shareholder, (3)
good liquidity and access to the bank markets, and (4) low land
cost.
At the same time, the Ba3 rating considers Agile's geographic
concentration in Guangdong and exposure to second- and third-tier
cities, where property sales could be negatively affected by
tightening regulatory controls.
Agile's liquidity position is adequate. Its cash holdings of
RMB22.3 billion at end-December 2016 covered 174% of its short-
term debt.
Agile's B1 senior unsecured rating is one notch lower than its
corporate family rating, reflecting subordination risk for senior
unsecured bond holders.
The positive outlook reflects Moody's expectation that Agile will
maintain growth in presales and revenue and improve its profit
margins, which will in turn improve its credit metrics over the
next 12-18 months.
The positive outlook also reflects Moody's expectation that Agile
will continue its disciplined financial management and land
acquisition strategy.
Upward rating pressure could emerge if Agile (1) continues its
stable growth in presales, (2) maintains its disciplined approach
to land acquisitions, and (3) improves its credit metrics, such
that its ratio of EBIT to interest coverage exceeds 3.5x and its
ratio of revenue to adjusted debt rises above 90% on a sustained
basis.
The ratings are unlikely to be downgraded given the positive
outlook. The outlook could return to stable if Agile's presales,
gross profit margins or credit metrics weaken due to a slowdown in
sales or rapid debt-funded expansion or both.
Specifically, the outlook could return to stable if Agile's ratio
of EBIT to interest falls to 3.0x, revenue to adjusted debt
declines to 85%, or its ratio of cash holdings to short-term debt
falls to 1.5x.
The principal methodology used in this rating was Homebuilding And
Property Development Industry published in April 2015.
Agile Group Holdings Limited is a major property developer in
China, operating in the mid- to high-end segment. At Dec. 31,
2016, the company had a land bank with a total gross floor area of
32.6 million square meters across 46 cities and districts in
China. Southern China (mainly Guangdong Province) is its largest
market, accounting for around 34% of the company's land bank at
end-2016 and around 49% of its presales in 2016.
TIMES PROPERTY: 1H Results Support Pos. Outlook on Moody's B1 CFR
-----------------------------------------------------------------
Moody's Investors Service says that Times Property Holdings
Limited's 1H 2017 results were in line with Moody's expectations
and support the positive outlook on its B1 corporate family rating
and B2 senior unsecured debt rating.
"Times Property's strong revenue growth during 1H 2017, stable
profitability, and solid liquidity profile continue to support its
positive outlook," says Chris Wong, a Moody's analyst.
Times Property's revenue in 1H 2017 increased by 53% year-on-year,
backed by its strong sales performance over the last 1-2 years.
The company's contracted sales grew by 30.3% year-on-year to
RMB20.1 billion during the first seven months of 2017, a result
which will support revenue growth over the next 1-2 years.
This sales performance also puts it well on track to achieve its
full-year target of RMB32.5 billion.
Moody's expects that Times Property's revenue to adjusted debt
will register at around 70%-75% over the next 12-18 months, and
its EBIT/interest coverage at around 2.8x-3.0x over the same
period. Such levels would strongly position the company at the
current B1 rating.
Times Property's liquidity position remains strong. Its cash
balance of RMB13.1 billion at end-June 2017 and strong contracted
sales will enable it to meet repayment of its short-term debt of
RMB2.4 billion over the next 12 months, as well as committed land
premiums.
Times Property has been active in debt-funded land acquisitions to
support its growth. It purchased nine plots of land for a total
cost of RMB9.5 billion in 1H 2017.
As a result, its reported debt increased to RMB29.6 billion at
end-June 2017 from RMB20.8 billion at end-2016, and its debt
leverage - as measured by revenue/adjusted debt - weakened to 63%
for the 12 months to June 2017 from 74.5% in 2016.
Nevertheless, Moody's expects the company to slow down the pace of
its land acquisitions to control its growth in debt in 2H 2017.
Times Property maintained a gross profit margin of 26.3% in 1H
2017, which led to an increase in EBIT and partly offset the
impact of rising interest expenses. Consequently, the company's
EBIT interest coverage for the 12 months to June 2017 stayed
largely unchanged at 2.6x, compared to 2.7x in 2016.
The company has also raised funding at lower costs and over longer
terms - including two offshore bonds - to refinance its higher-
cost borrowings.
As a result, its borrowing cost fell slightly to 8.17% in 1H 2017
from 8.32% in 2016. Its borrowing costs will fall further in 2H
2017 after it repaid its RMB1.5 billion 10.375% offshore bond in
July 2017.
The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in April 2015.
Times Property Holdings Limited is a property developer based in
Guangdong Province. It focuses on meeting end-user demand for
mass-market housing. At end-June 2017, it had 62 property projects
across eight cities in Guangdong Province and Changsha city in
Hunan Province. Its land bank totaled around 14.5 million square
meters as of the same date.
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I N D I A
=========
FASTRACK COMMUNICATIONS: CRISIL Reaffirms D Rating on INR55M Loan
-----------------------------------------------------------------
CRISIL has been consistently following up with Fastrack
Communications Private Limited (Fastrack) for obtaining
information through letters and emails dated April 13, 2017, and
May 8, 2017, among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 10 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Letter of Credit 35 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Proposed Long Term
Bank Loan Facility 55 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Fastrack Communications Private
Limited. This restricts CRISIL's ability to take a forward looking
view on the credit quality of the entity. CRISIL believes that the
information available for Fastrack Communications Private Limited
is consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL B' category or
lower. Based on the last available information, CRISIL has
reaffirmed the rating at 'CRISIL D/CRISIL D'.
Fastrack was incorporated in February 2008 in Noida, Uttar
Pradesh. The company imports mobile phones from China and Taiwan,
and sells these in India under the Lemon brand. It commenced
operations in June 2008. Fastrack was founded by Mr. Sandeep
Mushran, Mr. M S Malik, and Mr. Gopal Kalra, to tap into
opportunities in the mobile handset segment in India. In June
2015, the company ventured into marketing of other electronic
products such as LED bulbs, LED TVs, and music systems under the
same brand.
FROST FALCON: CRISIL Reaffirms D Rating on INR5.0MM Cash Loan
-------------------------------------------------------------
CRISIL has been consistently following up with Frost Falcon
Distilleries Limited (FFDL) for obtaining information through
letters and emails dated April 13, 2017, and May 8, 2017, among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 0.5 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Cash Credit 5.0 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Proposed Long Term
Bank Loan Facility 3.61 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Term Loan 1.09 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Frost Falcon Distilleries
Limited. This restricts CRISIL's ability to take a forward looking
view on the credit quality of the entity. CRISIL believes that the
information available for Frost Falcon Distilleries Limited is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL B' category or
lower. Based on the last available information, CRISIL has
reaffirmed the rating at 'CRISIL D/CRISIL D'.
Established in Sonipat in 1980 by Mr. O.P Katyal, FFDL
manufactures extra-neural alcohol and rectified spirits. Currently
the day to days operations are being managed by Mr. Rajesh Katyal,
son of Mr. O.P Katyal.
INTEGRATED CAPS: CRISIL Reaffirms 'D' Rating on INR17MM Term Loan
-----------------------------------------------------------------
CRISIL has been consistently following up with Integrated Caps
Private Limited (ICPL) for obtaining information through letters
and emails dated April 13, 2017, and May 8, 2017, among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Letter of Credit 15 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Proposed Term Loan 8 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Term Loan 17 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Integrated Caps Private
Limited. This restricts CRISIL's ability to take a forward looking
view on the credit quality of the entity. CRISIL believes that the
information available for Integrated Caps Private Limited is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL B' category or
lower. Based on the last available information, CRISIL has
reaffirmed the rating at 'CRISIL D/CRISIL D'.
ICPL, incorporated in 1990 by Mr. Biren Sabharwal, manufactures
crown caps and polyethylene terephthalate (PET) preforms. Its
manufacturing facility is in Noida.
JBS ENGINEERING: CRISIL Reaffirms 'D' Rating on INR6.7MM Loan
-------------------------------------------------------------
CRISIL has been consistently following up with JBS Engineering
Works (JEW) for obtaining information through letters and emails
dated April 13, 2017, and May 4, 2017, among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 6.7 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Term Loan 1.42 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of JBS Engineering Works. This
restricts CRISIL's ability to take a forward looking view on the
credit quality of the entity. CRISIL believes that the information
available for JBS Engineering Works is consistent with 'Scenario
1' outlined in the 'Framework for Assessing Consistency of
Information with CRISIL B' category or lower. Based on the last
available information, CRISIL has reaffirmed the rating at 'CRISIL
D'.
JBS Engineering Works (JEW) was set up in 2010 as a partnership
firm by Sharma and Banyal family. The firm is engaged in the
manufacturing of auto components parts for the Tier I vendors of
Hero Moto Corp and Mahindra and Mahindra. The partners of the firm
are Mr. D.S. Sharma, Mrs. Laxmi Sharma, Mr. Deepak Banyal, Mrs.
Suman Banyal and M/S India Micro Private Limited.
KHANNA BUILDERS: CRISIL Reaffirms 'D' Rating on INR20MM Loan
------------------------------------------------------------
CRISIL has been consistently following up with Khanna Builders and
Developers (KBD) for obtaining information through letters and
emails dated April 10, 2017, and May 8, 2017, among others, apart
from telephonic communication. However, the issuer has remained
non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 20 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Khanna Builders and Developers.
This restricts CRISIL's ability to take a forward looking view on
the credit quality of the entity. CRISIL believes that the
information available for Khanna Builders and Developers is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL B rating category
or lower. Based on the last available information, CRISIL has
reaffirmed the rating at 'CRISIL D'.
KBD, set up in 2002, is part of the Jabalpur-based Khanna group.
KBD develops residential real estate, primarily in Jabalpur, and
is executing a residential township project, Sukh Sagar Valley -
Phase 2, with 190 units. The projects in this phase of the
township include Casa Elita, Casa Victoria, Sunflower ' 2, Lily -
2, Tulip -2, and Pearl. The Khanna group is managed by Mr.
Baljinder Singh Khanna, supported by his sons, Mr. Amandeep Singh
Khanna and Mr. Ramandeep Khanna.
KOSHIYA ENTERPRISE: CRISIL Reaffirms 'D' Rating on INR15MM Loan
---------------------------------------------------------------
CRISIL has been consistently following up with Koshiya Enterprise
(KE) for obtaining information through letters and emails dated
April 6, 2017, and May 8, 2017, among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 15 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Koshiya Enterprise. This
restricts CRISIL's ability to take a forward looking view on the
credit quality of the entity. CRISIL believes that the information
available for Koshiya Enterprise is consistent with 'Scenario 1'
outlined in the 'Framework for Assessing Consistency of
Information with CRISIL B rating category or lower. Based on the
last available information, CRISIL has reaffirmed the rating at
'CRISIL D'.
KE is a partnership firm established in October 2012 by the
Koshiya family based in Surat. The firm, owned by the KStar group,
is a special-purpose vehicle floated for construction of a real
estate project, The Candlewood, in Katargam, Surat.
KSHEERAABD CON: Ind-Ra Moves BB- Issuer Rating to Not Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Ksheeraabd
Constructions Private Limited's Long-Term Issuer Rating to the
non-cooperating category. The issuer did not participate in the
surveillance exercise, despite continuous requests and follow-ups
by the agency. Therefore, investors and other users are advised to
take appropriate caution while using these ratings. The rating
will now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the
agency's website. The instrument-wise rating actions are:
-- INR30 mil. Fund-based facilities migrated to non-cooperating
category with IND BB-(ISSUER NOT COOPERATING)/IND A4+(ISSUER
NOT COOPERATING) rating;
-- INR500 mil. Non-fund-based facilities migrated to non-
cooperating category with IND A4+(ISSUER NOT COOPERATING)
rating; and
-- INR300 mil. Proposed non-fund-based facilities migrated to
non-cooperating category with Provisional IND A4+(ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on 1
December 2014. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Set up in August 2005, Ksheeraabd Constructions is a Hyderabad-
based construction company, majorly focusing on the road segment.
The company was founded by Captain K Kishan and his family
members.
K S R GRANITE: CRISIL Reaffirms 'D' Rating on INR15MM LT Loan
-------------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank facilities of
K S R Granite Private Limited (KSRGPL) at 'CRISIL D/CRISIL D'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 1 CRISIL D (Reaffirmed)
Bill Discounting 4 CRISIL D (Reaffirmed)
Letter of Credit 5 CRISIL D (Reaffirmed)
Packing Credit 4 CRISIL D (Reaffirmed)
Proposed Long Term
Bank Loan Facility 15 CRISIL D (Reaffirmed)
The rating reflects instances of delay by KSRGPL in servicing its
debt; the delays were because of the company's weak liquidity
owing to weak operations and working capital-intensive operations.
KSRGPL is exposed to risks related to modest scale of operations
in the fragmented granites export industry. However, the company
benefits from its promoters' extensive industry experience.
Key Rating Drivers & Detailed Description
Weakness
* Instances of delay in servicing debt: The company had defaulted
in its term loan obligations and had also overdrawn its working
capital facilities for more than 30 days. The delays were due to
weak operating performance and working capital intensive
operations.
* Exposure to modest scale of operations in the fragmented
industry: The company is estimated to report revenue of INR 15.5
crores in fiscal 2017, reflecting its modest scale of operations.
The granite export industry is highly fragmented with number of
small and large players as there is limited technical expertise
and investment required.
Strengths
* Promoter's extensive industry experience: The promoter Mr. Subba
Reddy has more than three decades of experience in the granite
processing industry and operates other entities, Pallava Granites
Industries India Pvt Ltd and Pallava Granites Industries Chennai
Private Limited. The promoter's extensive experience and
established relationship with his key customers in the granite
industry has enabled him to record healthy growth in revenues in
these group entities.
KSRGPL was originally set up in 1995 as a partnership concern and
was reconstituted as a private limited company in 2009. It
undertakes quarrying and sale of rough granite. Mr. K Subba Reddy
manages the daily operations.
KSRGPL reported Profit after tax of INR0.4 crore on revenues of
INR34 crores in fiscal 2016, as against loss of INR1.0 crore and
revenue of INR28 crores,in fiscal 2015.
LINGAYA'S SOCIETY: CRISIL Reaffirms D Rating on INR22.47MM Loan
---------------------------------------------------------------
CRISIL has been consistently following up with Lingaya's Society
(LIS) for obtaining information through letters and emails dated
April 13, 2017, and May 8, 2017, among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 17.53 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Term Loan 22.47 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Lingaya's Society. This
restricts CRISIL's ability to take a forward looking view on the
credit quality of the entity. CRISIL believes that the information
available for Lingaya's Society is consistent with 'Scenario 1'
outlined in the 'Framework for Assessing Consistency of
Information with CRISIL B' category or lower. Based on the last
available information, CRISIL has reaffirmed the rating at 'CRISIL
D'.
LIS was set up in 2010 as Lingaya Jankalyan Shikshan Sansthan
(LJSS); the name was changed in 1998. The society conducts courses
through various educational institutes set up in the National
Capital Region. It is promoted by Mr. V K Sinha.
PIONEER TORSTEEL: Ind-Ra Moves D Issuer Rating to Not Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Pioneer Torsteel
Mills Private Limited's (PTMPL) Long-Term Issuer Rating to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND D(ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR100 mil. Fund-based working capital limits (Long-term)
migrated to non-cooperating category with IND D(ISSUER NOT
COOPERATING) rating; and
-- INR185 mil. Term loan (Long-term) migrated to non-cooperating
category with IND D(ISSUER NOT COOPERATING) rating; and
-- INR40 mil. Non-fund-based working capital limits (Short-term)
migrated to non-cooperating category with IND D(ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on 29
June 2016. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Established in 1999, PTMPL manufactures sponge iron and steel
products at its plant with an installed capacity of 200 tonnes per
day. After being acquired by Benita Industries Limited in 2013,
PTMPL restarted its commercial operations from July 2014, after a
halt since FY12. Benita Industries holds 97% stake in PTMPL.
REGENT BEERS: Ind-Ra Assigns 'BB' Issuer Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Regent Beers &
Wines Ltd (RBWL) a Long-Term Issuer Rating of 'IND BB'. The
Outlook is Stable. The instrument-wise rating actions are:
-- INR110 mil. Fund-based working capital limit assigned
with IND BB/Stable sating;
-- INR34 mil. Long-term loans due on June 2019 assigned with IND
BB/Stable rating; and
-- INR6 mil. Non-fund-based working capital limit assigned with
IND A4+ rating.
KEY RATING DRIVERS
The ratings reflect RBWL's small scale of operations and moderate
liquidity. Revenue fell to INR496 million during FY17 (FY16:
INR545 million) due to the lesser number of units sold owing to a
lower demand. Net cash cycle was long at 95 days in FY17 (FY16: 97
days) and the company's use of the fund-based limits was 93.48%
for the 12 months ended June 2017. FY17 financials are provisional
in nature.
The ratings, however, are supported by RBWL's strong and improved
operating margin (FY17: 20.2%; FY16: 13.5%). The improvement in
margins was due to a decline in manufacturing and raw material
costs. The ratings are also supported by the company's strong
credit metrics as reflected from its gross interest coverage of
4.9x in FY17 (FY16: 2.8x) and net financial leverage of 2.2x
(4.5x).
RATING SENSITIVITIES
Positive: An improvement in the scale of operations along with the
maintenance of the credit profile would lead to a positive rating
action.
Negative: Deterioration in the overall credit metrics would lead
to a negative rating action.
COMPANY PROFILE
RBWPL manufactures beer in its 300,000 hectolitres brewery located
at Maksi, Madhya Pradesh. The company sells its products to the
Madhya Pradesh government. From March 2017, it has started
manufacturing beer for B9 Beverages P Ltd.
SHAH BHOGILAL: Ind-Ra Moves BB Issuer Rating to Not Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Shah Bhogilal
Jethalal & Bros.' Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website. The instrument-wise rating actions are:
-- INR44.5 mil. Fund-based working capital limits migrated to
non-cooperating category with IND BB(ISSUER NOT
COOPERATING)/IND A4+(ISSUER NOT COOPERATING) rating;
-- INR9.9 mil. Term loan limits migrated to non-cooperating
category with IND BB(ISSUER NOT COOPERATING) rating; and
-- INR100 mil. Non-fund-based working capital limits migrated to
non-cooperating category with IND A4+(ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
June 17, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Established in 1933, Shah Bhogilal Jethalal & Bros. manufactures
fire-fighting and safety equipment, and sells products under the
brand AAAG. It has two manufacturing units in Ahmedabad. Its major
products are hydrant valves, couplings and nozzles, monitors,
hoses, extinguisher boxes, and portable and fixed foam equipment.
Its partners are Mr Mukesh Shah and Mr Rajesh Shah.
SREEDEVI PLASTI: Ind-Ra Moves D Issuer Rating to Not Cooperating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Sreedevi Plasti
Tech Pvt Ltd's (SPTPL) Long-Term Issuer Rating to the non-
cooperating category. The issuer did not participate in the
surveillance exercise, despite continuous requests and follow-ups
by the agency. Therefore, investors and other users are advised to
take appropriate caution while using these ratings. The rating
will now appear as 'IND D(ISSUER NOT COOPERATING)' on the agency's
website. The instrument-wise rating actions are:
-- INR8 mil. Fund-based facilities (Long-term/Short-term)
migrated to non-cooperating category with IND D(ISSUER NOT
COOPERATING) rating; and
-- INR50.5 mil. Term loans (Long-term) migrated to non-
cooperating category with IND D(ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 25, 2015. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
SPTPL was incorporated in August 2012 and began commercial
production in January 2015. The company manufactures reclaimed
rubber at its manufacturing facility located in Medak district,
Telangana. The facility has an annual production capacity of
3,700MT.
VIJAY TEXTILES: Ind-Ra Downgrades Long-Term Issuer Rating to 'D'
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Vijay Textiles
Ltd's (VTL) Long-Term Issuer Rating to 'IND D' from 'IND B+'. The
Outlook was Stable. The instrument-wise rating actions are:
-- INR665.7 mil. (increased from INR565.7 mil.) Fund-based
working capital limits (Long-term/Short-term) downgraded with
IND D rating;
-- INR688 mil. (reduced from INR835.8 mil.) Term loans (Long-
term) due on December 2021 downgraded with IND D rating; and
-- INR10 mil. Non-fund-based working capital limits (Long-
term/Short-term) downgraded with IND D rating.
KEY RATING DRIVERS
The downgrade reflects VTL's continuous delays in debt repayments
over the 12 months ended July 2017 due to stretched liquidity,
resulting from the company's elongated net working capital cycle
of 865 days in FY17 (FY16: 827 days).
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months could lead to a positive rating action.
COMPANY PROFILE
Incorporated in 1990, VTL is a public limited company, listed on
the Bombay Stock Exchange. It has a home textile printing and
embroidery facility in Mahbubnagar district near Hyderabad with an
annual capacity of 15 million meters.
VIMAL CHHAGANLAL: CRISIL Reaffirms 'D' Rating on INR5MM Cash Loan
-----------------------------------------------------------------
CRISIL has been consistently following up with Vimal Chhaganlal
Jewellers Private Limited (VCJPL) for obtaining information
through letters and emails dated April 10, 2017 and May 8, 2017
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 5 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Proposed Long Term 5 CRISIL D (Issuer Not
Bank Loan Facility Cooperating; Rating
Reaffirmed)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Vimal Chhaganlal Jewellers
Private Limited. This restricts CRISIL's ability to take a forward
looking view on the credit quality of the entity. CRISIL believes
that the information available for Vimal Chhaganlal Jewellers
Private Limited is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL B'
rating category or lower. Based on the last available information,
CRISIL has reaffirmed the rating at 'CRISIL D'.
VCJPL, promoted by Mr. Vimal Seth and his family in 2010-11
(refers to financial year, April 1 to March 31), trades in gold
ornaments.
=================
I N D O N E S I A
=================
GAJAH TUNGGAL: S&P Upgrades CCR to 'B-' on Successful Bond Deal
---------------------------------------------------------------
S&P Global Ratings raised its long-term corporate credit rating on
PT Gajah Tunggal Tbk. (Gajah Tunggal) to 'B-' from 'CCC'. The
outlook is stable.
S&P said, "At the same time, we raised our long-term ASEAN
regional scale rating on the company to 'axB' from 'axCCC'. We
also raised our issue rating on Gajah Tunggal's outstanding senior
secured debts to 'B-' from 'CCC'.
"We also affirmed our 'B-' issue rating on Gajah Tunggal's
issuance of U.S. dollar-denominated senior secured notes due 2022.
"We removed all the ratings from CreditWatch where they were
placed with developing implications on July 31, 2017. Gajah
Tunggal is an Indonesia-based tire manufacturer.
"We upgraded Gajah Tunggal because we believe the company's
refinancing risk has reduced now that it has secured comprehensive
financing to call the US$500 million in notes maturing in 2018."
On Aug. 3, 2017, Gajah Tunggal priced US$250 million in new senior
secured notes maturing in 2022. The bond-raising exercise was a
pre-condition for the company to draw down on US$250 million in
amortizing bank loans maturing the same year. The combination of
the U.S. dollar notes and the bank loans provides the company with
enough funds to repay US$500 million in senior secured notes
maturing in February 2018. The fund-raising will extend Gajah
Tunggal's weighted average debt maturities to about four years.
S&P said, "Gajah Tunggal's credit profile remains constrained by
its modest size as a tire manufacturer, and margin sensitivity to
raw material prices and currency fluctuations. In addition, we
forecast the company has relatively thin cash flow adequacy ratios
and liquidity, and immaterial discretionary cash flows for the
next two years at least. We project a ratio of funds from
operations (FFO) to debt will be 12%-15% through 2018, and its
EBITDA interest coverage will be 2.5x-3.0x on the basis of our
margin assumptions. Our debt computation includes the company's
fairly sizable unfunded pension liabilities.
"We project minimal cash accumulation over the next 24 months,
given our forecast of negative discretionary cash flows in 2017.
That is because of residual spending on the expansion of the
company's facilities for making truck and bus radial tires.
Although capital spending is likely to reduce in 2018 after the
expansion is completed, we believe working capital requirements
will remain elevated. This is due to Gajah Tunggal's intention to
develop its export markets, especially in North America, where
payment terms are longer than in domestic markets. Most of the
revenue growth in 2016 and in the quarter ended March 31, 2017,
came from the North American market. GITI Tire Global Trading Pte.
Ltd., a related party, accounted for about 22.3% of Gajah
Tunggal's total revenue for the three months ended March 31, 2017.
Receivables from GITI increased substantially over the period to
reach about Indonesian rupiah (IDR) 1,560 billion as of March 31,
2017, compared with about IDR470 billion as of Dec. 31, 2015.
"Gajah Tunggal recently recalled about 395,000 tires in North
America in June 2017--the second in 12 months, after a recall of
250,000 tires in 2016. The company has not publicly indicated the
cost of the recall, but we do not expect the recall provision to
exceed US$20 million in 2017 based on the cost associated with the
recall in 2016. That number is manageable given our base-case
EBITDA of about US$160 million-US$180 million annually through
2018.
"The stable outlook reflects our expectation that Gajah Tunggal
will maintain its profitability and operations. The outlook also
reflects our view that the company's financial strength will
improve slowly over the next 24 months on modestly growing
revenues and EBITDA, but that it will have limited headroom under
its financial maintenance covenants.
"We may downgrade Gajah Tunggal if we believe the company is at
risk of missing an interest payment or its short-term debt grows
substantially more than we expect, such that it persistently
breaches bank loan covenants. This could occur if the ratio of
reported debt to EBITDA stays substantially above 3.5x or if its
EBITDA interest coverage is sustained below 2.0x.
"We may raise the rating if Gajah Tunggal is able to deleverage,
such that its ratio of FFO to debt approaches 20% sustainably. An
upgrade would be contingent upon the company being able to
demonstrate its ability to build-up liquidity buffer through
growing cash balance, improved covenant headroom, and reduced
reliance on short-term debt."
====================
S O U T H K O R E A
====================
MAGNACHIP: 2Q 2017 Results Consistent with Moody's B3 CFR
----------------------------------------------------------
Moody's Investors Service says that MagnaChip Semiconductor
Corporation's strong results for 2Q 2017 are consistent with its
B3 corporate family rating and stable outlook.
"MagnaChip's operating performance continued to improve in 2Q
2017, and its reported EBITDA -- adjusted for gains and charges --
rose to $20 million, up from $9 million a year ago, reaching its
highest level since 1Q 2013," says Gloria Tsuen, a Moody's Vice
President and Senior Analyst.
"Moody's expects the improvement in profitability will drive
MagnaChip's adjusted debt/EBITDA towards 6x in 2017 from 8.6x a
year ago. Such a level of leverage will be in line with the
company's B3 rating," adds Tsuen.
MagnaChip's reported operating income -- excluding gains and
charges -- increased to $12 million, up from less than $1 million
in 1Q 2017 and a loss of $2 million in 2Q 2016.
The strong performance was driven largely by higher fab
utilization, a favorable product mix, and sooner-than-expected
cost savings from its headcount reduction plan for 2017.
Total revenue was flat year on year in 2Q 2017 at $167 million.
Revenue increases from foundry services and power solutions were
largely offset by a decline in revenue from display solutions,
which was a result of OLED product transition. OLED display
revenue will start improving in 3Q as volume production begins on
new products.
Moody's expects MagnaChip's revenue to be largely flat this year,
but its operating margins will improve to the low single digits,
up from 0% in 2016 and losses in 2013-2015.
MagnaChip's debt was $302 million at end-June 2017, following the
issuance in January 2017 of about $86 million in exchangeable
notes.
The company's liquidity remains adequate. It had $132 million in
cash and equivalents and no short-term debt at end-June 2017.
The principal methodology used in this rating was Semiconductor
Industry Methodology published in December 2015.
MagnaChip Semiconductor Corporation is a designer and manufacturer
of analog and mixed-signal semiconductor platform solutions for
communications, IoT, consumer, industrial and automotive
applications.
*********
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
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
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
cost net of depreciation may understate the true value of a
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 B. Magdadaro and
Peter A. Chapman, Editors.
Copyright 2017. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
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Information contained herein is obtained from sources believed
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TCR-AP subscription rate is US$775 for 6 months delivered via e-
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thereof are US$25 each. For subscription information, contact
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*** End of Transmission ***