/raid1/www/Hosts/bankrupt/TCRAP_Public/190508.mbx
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
Wednesday, May 8, 2019, Vol. 22, No. 92
Headlines
A U S T R A L I A
2NDS WORLD: Appliance Retailer Collapses After 35 Years
BUILD-A-BEAR WORKSHOP: Australian Unit Emerges From Administration
CC BLAND: Second Creditors' Meeting Set for May 14
FUTUREPEOPLE RECRUITMENT: First Creditors' Meeting Set for May 15
MRP RETAIL: First Creditors' Meeting Set for May 14
SCORDO TRANSPORT: Second Creditors' Meeting Set for May 14
STERLING FIRST: First Creditors' Meeting Set for May 15
C H I N A
21VIANET GROUP: Fitch Rates $300MM Sr. Unsec. Notes 'B+/RR4'
CENTRAL CHINA REAL: Fitch Rates $300MM Senior Notes Final 'BB-'
URUMQI GAOXIN: Fitch Affirms Long-Term IDR at BB+, Outlook Stable
YIDA CHINA: CMIG Debt Crisis Triggers CNY8.7 Billion Default
I N D I A
AJIT SOLAR: Insolvency Resolution Process Case Summary
BHA ASSOCIATES: Insolvency Resolution Process Case Summary
CENTURY AGRO: Insolvency Resolution Process Case Summary
CHANDAN TEXTILES: ICRA Maintains 'B' Rating in Not Cooperating
CONTEC SYNDICATE: Ind-Ra Moves BB- LT Rating to Non-Cooperating
DELHI INTERNATIONAL: Moody's Rates New $350MM Sr. Sec. Bond 'Ba2'
DHARMDEEP COMMODITIES: ICRA Withdraws B+ Rating on INR3cr Loan
DWARKADHIS PROJECTS: Ind-Ra Migrates 'D' Rating to Non-Cooperating
GOPALA POLYPLAST: Insolvency Resolution Process Case Summary
GPT STEEL: Insolvency Resolution Process Case Summary
GSR VENTURES: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating
HIRA COTTON: ICRA Maintains 'B+' Rating in Not Cooperating
INDO DUTCH: ICRA Maintains 'B-' Rating in Not Cooperating
INDORE DEWAS: Ind-Ra Affirms 'D' Rating on INR5,500.2BB Bank Loan
JAI MATA: Ind-Ra Migrates 'B+' LT Issuer Rating to Non-Cooperating
MAHADEV MOTORS: CRISIL Reaffirms 'B+' Rating on INR11cr Loan
MAHANADI EDUCATION: Ind-Ra Maintains BB Rating in Non-Cooperating
MAX PROPERTIES: ICRA Maintains 'D' Rating in Not Cooperating
MISHRA POLYPACKS: CRISIL Assigns 'B' Rating to INR21cr Loan
MOBILE TELECOM: CRISIL Moves 'D' Rating to Not Cooperating
OIL COUNTRY: ICRA Migrates 'D' Rating to Not Cooperating
PARA PRODUCTS: ICRA Maintains 'B+' Rating in Not Cooperating
PATIDAR AGRICARE: CRISIL Assigns 'B' Rating to INR2.75cr Loan
PINTER FA.NI: Insolvency Resolution Process Case Summary
PNG TOLLWAY: ICRA Maintains 'D' Rating in Not Cooperating
PRAGATI GLASS: ICRA Maintains 'D' Rating in Not Cooperating
PRANEE INFRASTRUCTURE: ICRA Retains D Rating in Not Cooperating
PRECISE ENGINEERING: CRISIL Assigns B+ Rating to INR6.88cr Loan
PROSEED FOUNDATION: ICRA Maintains B+ Rating in Not Cooperating
PURBANCHAL VENEERS: Ind-Ra Migrates BB+ Rating to Non-Cooperating
REALTIME TECHSOLUTIONS: ICRA Cuts Rating on INR16cr Loan to D
ROLTA INDIA: Gets Out of Bankruptcy; NCLT Dismisses UB Plea
SAINI ALLOYS: ICRA Keeps B+ INR24cr Loan Rating in Not Cooperating
SAKTHI GANESH: Ind-Ra Lowers Long Term Issuer Rating to 'BB+'
SANTOSH ENTERPRISES: CRISIL Lowers Rating on INR2.25cr Loan to D
SARAVANA BUILDWELL: ICRA Keeps 'D' INR10cr Loan Rating in Not Coop.
SARAWAGI AUTOMOBILES: ICRA Maintains B Rating in Not Cooperating
SATYENDRA AGRO: CRISIL Lowers Rating on INR7cr Cash Loan to B-
SAVA HEALTHCARE: Ind-Ra Corrects May 2 Rating Release
SHREE PRAYOSHA: CRISIL Reaffirms 'B' Rating on INR6cr Cash Loan
SHRI GANESH: CRISIL Hikes Rating on INR4cr Term Loan to B+
SILVER COTTON: ICRA Maintains 'B+' Rating in Not Cooperating
SITARAM MAHARAJ: ICRA Lowers Rating on INR150cr Loans to D
SRIRAM FASTENERS: CRISIL Reaffirms 'B' Rating on INR2.50cr Loan
STEEL PRODUCTS: ICRA Maintains 'C-' Rating in Not Cooperating
VICTORY TRANSFORMERS: Insolvency Resolution Process Case Summary
YADU SUGAR: Ind-Ra Affirms 'D' LT Issuer Rating in Not Cooperating
M O N G O L I A
BANK OF MONGOLIA: S&P Puts 'B' Rating to US$ Sr. Unsec. Notes Issue
N E W Z E A L A N D
VINOPTIMA ESTATE: Vineyard Unsold Eight Months after Receivership
S I N G A P O R E
HYFLUX LTD: Faces US$57.7MM Claim by BNP Paribas for Bond
INTERPLEX HOLDINGS: Fitch Withdraws 'BB-' LT IDR, Outlook Stable
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A U S T R A L I A
=================
2NDS WORLD: Appliance Retailer Collapses After 35 Years
-------------------------------------------------------
9Finance reports that factory seconds appliance retailer 2nds World
has collapsed after 35 years in business.
The chain was placed into the voluntary administration of chartered
accounting firm De Vries Tayeh on April 15, 9Finance discloses.
"2nds World has a long-running history, currently selling
discounted appliances to retail customers and commercial clients.
2nds World is also a member of Australia's largest appliance buying
group, Narta," 9Finance quotes De Vries Tayeh administrator Mark
Robinson as saying said in a statement. "The Administrators are
already in discussions with a number of interested parties and are
seeking to execute an urgent sale process as a going concern. We
encourage any other interested parties to contact us forthwith.
"2nds World will continue to trade for a limited period while the
Administrators urgently seek expressions of interest to sell the
business as a going concern."
According to the report, the retailer said on its website that all
stores and online ordering have been closed "until further
notice".
2nds World has five stores in NSW and one in Victoria, in addition
to an online store. 2nds World has six outlets and an online
store. It sells discounted appliances, cameras and tablets to
retail customers and commercial clients.
BUILD-A-BEAR WORKSHOP: Australian Unit Emerges From Administration
------------------------------------------------------------------
SmartCompany reports that the Australian arm of Build-a-Bear
Workshop has emerged from administration, agreeing to a Deed of
Company Arrangement (DOCA) to keep the business afloat.
According to SmartCompany, the company announced its administration
in mid-March, blaming increased operating costs and a drop in foot
traffic for the business' decline. At the time, administrators Lowe
Lippman were appointed, and the company announced 10 stores across
Australia would close.
Build-a-Bear is headquartered in the United States, where it's
listed on the New York Stock Exchange. Its Australian operation is
franchised.
At the time of the administration, the company's chief executive
officer Sharon Price John blamed a number "unusual challenges" for
the company's weak Q4 earnings report, including Brexit, GDPR laws,
and the collapse of Toys 'R' Us, according to SmartCompany.
However, in a statement on May 6, Build-a-Bear Australia's chief
executive Gavin Port said a DOCA had been agreed to by creditors,
saving more than 200 jobs and keeping a number of Build-a-Bear
stores open.
"We are very pleased to be able to continue offering the Australian
guests with the unique experience Build-A-Bear has to offer,"
SmartCompany quotes Mr. Port as saying in a statement.
At the time, the company was forced to shut 10 under-performing
stores, however, three of those will now re-open as part of the
DOCA. Those locations are Westfield Marion (SA), Westfield Miranda
(NSW) and Westfield Carousel (WA), the report says.
The remaining seven stores will remain closed for the time being.
A report circulated to creditors last month revealed the company
owed AUD282,000 to the ATO, AUD346,000 on an American Express
corporate credit card, along with AUD423,000 to ANZ bank in the
form of an overdraft account, SmartCompany discloses. It also
revealed the company had a loss of AUD31,000 in the six months
leading to December 2018.
However, some significant outstanding loans and valuable inventory
resulted in the company's net assets being worth AUD558,000 at the
end of the same period.
In terms of creditors, the company owed AUD484,000 in employee
claims, such as wages, super and leave. A total of AUD3.9 million
is owed to unsecured creditors, which include the ATO, trade
suppliers, and gift card holders.
Mr. Port himself is also owed AUD54,000 in the form of a loan,
however, the report states he believes that amount may not be
payable, SmartCompany relays.
In the report, the administrator's proposed DOCA includes a number
of terms, SmartCompany notes. These include a guarantee the company
will pay the employees' superannuation, the entitlements of all
terminated employees (a value of AUD94,000), and a AUD276,000 sum,
to be paid in 12 monthly instalments.
The deed also proposes a number of parties will not participate for
a dividend under the deed, including ANZ Bank, and the franchise's
UK parent company, adds SmartCompany.
CC BLAND: Second Creditors' Meeting Set for May 14
--------------------------------------------------
A second meeting of creditors in the proceedings of CC Bland Group
Pty Ltd has been set for May 14, 2019, at 11:00 a.m. at the offices
of O'Brien Palmer, at Level 9, 66 Clarence Street, in Sydney, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 13, 2019, at 4:00 p.m.
Daniel Frisken of O'Brien Palmer was appointed as administrator of
CC Bland Group on March 28, 2019.
FUTUREPEOPLE RECRUITMENT: First Creditors' Meeting Set for May 15
-----------------------------------------------------------------
A first meeting of the creditors in the proceedings of Futurepeople
Recruitment Pty will be held on May 15, 2019, at 3:00 p.m. at the
offices of KPMG, at Level 38, International Towers Three, 300
Barangaroo Avenue, in Barangaroo, NSW.
Stephen Vaughn and Gayle Dickerson of KPMG were appointed as
administrators of Futurepeople Recruitment on May 3, 2019.
MRP RETAIL: First Creditors' Meeting Set for May 14
---------------------------------------------------
A first meeting of the creditors in the proceedings of MRP Retail
Australia Pty Ltd will be held on May 14, 2019, at 2:00 p.m. at
Scottish House Business Centre, Level 4, 90 William Street, in
Melbourne, Victoria.
Barry Wight and Glenn Spooner of Cor Cordis were appointed as
administrators of MRP Retail on May 2, 2019.
SCORDO TRANSPORT: Second Creditors' Meeting Set for May 14
----------------------------------------------------------
A second meeting of creditors in the proceedings of Scordo
Transport Services Pty. Ltd has been set for May 14, 2019, at 10:00
a.m. at the offices of SV Partners, at Level 17, 200 Queen Street,
in Melbourne, Victoria.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 13, 2019, at 5:00 p.m.
Michael Carrafa and Peter Gountzos of SV Partners were appointed as
administrators of Scordo Transport on Feb. 22, 2019.
STERLING FIRST: First Creditors' Meeting Set for May 15
-------------------------------------------------------
A first meeting of the creditors in the proceedings of:
-- Sterling First (Aust) Ltd
-- Acquest Capital Pty Ltd
-- Acquest Property Pty Ltd
-- Gage Management Ltd
-- SHL Management Services Pty Ltd
-- Silver Link Investment Company Ltd
-- Silverlink Securities Pty Ltd
-- Sterling Corporate Services Pty Ltd
-- Sterling First Projects Pty Ltd
-- Sterling First Property Pty Ltd
-- Rental Management Australia Pty Ltd
-- Rental Managment Australia Developments Pty Ltd
will be held on May 15, 2019, at 11:00 a.m. at Palace Training
Room, Ground Floor, 108 St Georges Terrace, in Perth, WA.
Martin Bruce Jones and Wayne Anthony Rushton of Ferrier Hodgson
were appointed as administrators of Sterling First on May 3, 2019.
=========
C H I N A
=========
21VIANET GROUP: Fitch Rates $300MM Sr. Unsec. Notes 'B+/RR4'
------------------------------------------------------------
Fitch Ratings has assigned a final rating of 'B+' with a Recovery
Rating of 'RR4' to China-based 21Vianet Group, Inc.'s (B+/Stable)
USD300 million 7.857% senior unsecured notes due 2021.
The final rating follows the receipt of documents conforming to
information already received and is in line with the expected
rating published on 1 April 2019.
The notes represent 21Vianet's unsecured obligations and rank pari
passu at all times with the data-centre service provider's other
present and future unsecured and unsubordinated obligations. The
'RR4' Recovery Rating on the notes reflects Fitch's bespoke
calculations, which show recovery in the event of a default would
be at 31%-50%. The proceeds from the notes will be used to
refinance its outstanding indebtedness, fund future capital needs
and general corporate purposes.
KEY RATING DRIVERS
Small Scale; Low Market Share: 21Vianet's 'B+' IDR is constrained
by its small scale with a revenue market share of only 5% in
China's USD11 billion internet data-centre market in 2017,
according to market research firm IDC. 21Vianet is significantly
smaller than Chinese fixed-line telecom incumbents, large
cloud-computing providers and global data-centre peers, which have
considerably larger scale and are better capitalised. However, the
company has differentiated itself from its domestic competitors and
has become a leading domestic carrier-neutral service provider by
focusing on hosting and related services.
Weak Linkage with Parent: Fitch rates 21Vianet on its standalone
credit profile as its cash flows are largely ring-fenced within the
group by the restrictive dividend covenants in the documents of its
existing and new bonds, which limit its ability to pay significant
cash to its parent, Tus-Holdings Co., Ltd. (THCL). Fitch assesses
the relationship between THCL and 21Vianet as one of a parent with
weak standalone profile, stronger subsidiary and overall weak
linkages, in line with Fitch's Parent and Subsidiary Rating Linkage
criteria. Fitch believes THCL and 21Vianet have weak legal,
operational and strategic linkages.
THCL owns a 21.2% equity stake but has 51% of the voting rights in
21Vianet. Any related party transactions of over CNY50 million need
to be reviewed and approved by its audit committee, which is
composed of independent directors. However, Fitch may downgrade the
ratings if there is any evidence of stronger parental influence
over 21Vianet that leads to an assessment of moderate or strong
parent-subsidiary linkage.
Improving Cash Generation: Fitch expects 2019 operating EBITDA to
rise to around CNY1 billion (2018: CNY912 million) with
management's focus on profitable growth in the data-centre
business. Fitch estimates 21Vianet's operating EBITDA margin will
improve in 2019 to around 26%-27% (2017: 15%) following its
disposal of its loss-making retail broadband and content-delivery
network businesses in 2017. The profitability improvement is also
driven by the company's ability to deliver high-power-density
cabinets with higher average prices and to offer more value-added
services.
Slow Expansion into Wholesale Business: 21Vianet's business profile
is affected by its slower expansion into the wholesale business
model for internet data centres. 21Vianet is in the process of
signing contracts with wholesale Chinese customers, which normally
have stronger operational scale and longer contracts terms of five
to 10 years. Wholesale data-centre service providers normally
customise more than 1,000 server cabinets for each customer. They
also have more stable margins and cash flows, underpinned by solid
customer relationships and profiles, despite lower bargaining power
with the customers.
Moderate Net Leverage: Fitch believes 21Vianet's FFO adjusted net
leverage will improve to around 1.9x in 2019 (2017: 2.4x) with
better cash flow generation. However, it expects its gross leverage
to remain high as the company aims to fund capex on new wholesale
internet data centres using capital leases. 21Vianet had total debt
of CNY3.7 billion at end-December 2018, including CNY237 million in
bank loans, a CNY986 million capital-lease obligation, USD300
million in unsecured notes and CNY457 million due to a related
party, which was made up of capital leases from THCL.
However, 21Vianet had CNY2.6 billion in readily available cash and
it may redeploy a portion of the cash for M&As. Fitch may take
negative rating action if FFO adjusted net leverage worsens to
above 2.5x.
Variable Interest Equity Structure: The ratings reflect its
expectation of 21Vianet's continued healthy relationship with the
Chinese government and regulatory authorities. However, a change in
the position could affect its credit strength, considering the
rated entity's absence of equity control over its onshore operating
companies. These would include Beijing Yiyun Network Technology
Co., Ltd., Beijing iJoy Information Technology Co., Ltd., WiFire
Network Technology (Beijing) Co., Ltd. and other consolidated
affiliated Chinese entities, with which it has only contractual
relationships due to government restrictions on foreign ownership
in China's value-added telecom businesses.
DERIVATION SUMMARY
21Vianet's ratings are constrained by its smaller scale compared
with Chinese incumbent telecom operators and large cloud-computing
service providers. Its business profile is also weaker than major
domestic carrier-neutral peers due to slower expansion into the
wholesale business model for data-centre services, which tend to
provide more stable margins and cash flows with longer contract
periods than the retail business model.
21Vianet's credit profile is also weaker than global
carrier-neutral data centres such as Equinix, Inc. (BB+/Positive)
and Rackspace Hosting, Inc. (B+/Stable) due to its smaller scale,
lack of geographic diversification and lower profitability despite
lower financial leverage. The company also compares unfavourably
with PT Tower Bersama Infrastructure Tbk (TBI, BB-/Stable) as TBI's
credit profile benefits from longer-term contracts of over 10 years
with its customers.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Annual net addition of self-built cabinets of around 6,000 to
7,000 in 2019-2021
- Average monthly cabinet utilisation ratio of 60%-70% in
2019-2021
- No increase in monthly recurring hosting revenue per cabinet in
2019-2022
- Revenue CAGR of 14% in 2018-2021
- Adjusted EBITDA margin of around 27% in 2019-2021
- Capex of around CNY800 million-900 million in 2019-2021
- No cash dividend in 2019-2021
Recovery Rating Assumptions:
- Post-default operating EBITDA of CNY578 million
- Going-concern EBITDA multiple of 4.0x, reflecting 21Vianet's
smaller scale
- 10% administrative claims
- Issuance of US dollar unsecured notes to replace the existing
USD300 million unsecured notes
RATING SENSITIVITIES
Developments that May, Individually or Collectively, Lead to
Positive Rating Action
- An upgrade is unlikely without meaningful increase in market
position and greater geographical diversification
Developments that May, Individually or Collectively, Lead to
Negative Rating Action
- Any evidence of parental influence from THCL that would lead to
an assessment of moderate to strong parent-subsidiary linkage
between THCL and 21Vianet
- M&A that has a negative effect on the operations of the
business profile
- Operating EBITDA margin sustained below 15%
- FFO adjusted net leverage sustained above 2.5x
LIQUIDITY
Adequate Liquidity: Fitch expects 21Vianet's liquidity to remain
adequate. At end-December 2018, the company had readily available
cash of CNY2.6 billion and an undrawn credit line of CNY21 million.
These compare with short-term debt and current portion of long-term
debt of CNY345 million. Fitch expects its negative FCF to narrow in
the next few years, driven by strong operating cash generation
despite a higher capex budget.
CENTRAL CHINA REAL: Fitch Rates $300MM Senior Notes Final 'BB-'
---------------------------------------------------------------
Fitch Ratings has assigned Central China Real Estate Limited's
(CCRE; BB-/Stable) USD300 million 7.25% senior notes due 2023 a
final rating of 'BB-'. The notes are rated at the same level as
CCRE's senior unsecured rating because they constitute its direct
and senior unsecured obligations.
The assignment of the final rating follows the receipt of final
documentation conforming to information already received. CCRE
intends to use the net proceeds from the note issue for
refinancing. The final rating is in line with the expected rating
assigned on 15 April 2019.
CCRE's ratings are supported by the company's position as a leading
real-estate developer in China's Henan province, with broad
housing-product diversification and a growing non-property
development business in rental properties and project management.
The ratings are also supported by the company's healthy financial
profile, with leverage, as measured by net debt/adjusted inventory
that proportionately consolidates its joint ventures, falling to
31% by end-2018 from 34% at end-2017.
KEY RATING DRIVERS
Strong Presence in Henan: Fitch believes CCRE's record supports its
plan to increase its market share in Henan to 10%-13% in the next
one to three years, from 9% in 2018. CCRE has been developing
residential properties almost entirely in the province for more
than 27 years and it has projects in 18 prefecture-level cities and
an established reputation. CCRE's lower average selling price (ASP)
of CNY7,284 per square metre (sq m) in 2018, compared with peers'
ASP of above CNY11,000/sq m, reflects its wide product exposure,
which includes projects in smaller cities.
Sales, Market Share to Increase: CCRE's contracted sales in 2018
were strong at CNY53.7 billion, up by 76.5% from 2017. This was
driven by a larger share of sales from lower-tier cities in Henan.
Fitch expects CCRE's annual contracted sales to increase to CNY61
billion-68 billion in 2019-2020, while the company's market share
in Henan province is likely to expand to more than 10% in the
medium term. The company remained the largest developer in the
province in 2018.
CCRE's expansion into project management of residential property
developments in the province's smaller towns drove the increase in
EBITDA from non-development businesses. CCRE had 110 projects under
this asset-light business model as of December 2018. The company
expects these to provide CNY3.5 billion of revenue over the next
three to four years. Revenue from the asset-light model more than
doubled to CNY675 million in 2018, with a gross margin of 91%.
Aggressive Land Acquisitions Drive Leverage: CCRE acquired 13.5
million sq m in attributable gross floor area of land for CNY17.0
billion in 2018. The company achieved a land acquisition/contracted
sales value ratio of 0.28x in 2018, in line with 0.2x-0.3x in
previous years. Fitch expects the acquisitions to drive up the
company's leverage, measured by net debt/adjusted inventory on a
proportionate consolidation basis, to above 33% in 2019-2020, from
about 31% in 2018. Leverage fell in 2018 from 34% in 2016-2017
thanks to strong contracted sales growth.
Fitch believes CCRE's leverage will not rise above 40%, as the
company has the flexibility to slow its land acquisitions due to a
bigger attributable land bank of 34.7 million sq m that is
sufficient for development over the next five to six years.
Stabilising Margin: Fitch estimates CCRE's EBITDA margin (deducting
capitalised interest from cost of sales) to be higher than 20% in
2019. The EBITDA margin fell to 16% in 2017, from 17% in 2016,
affected by CCRE's strategy to accelerate inventory clearance in
1H15. Higher contracted sales than revenue also squeezed the EBITDA
margin as the selling, general and administrative expenses, which
are more a function of its contracted sales, are apportioned to a
much lower level of revenue. Fitch expects CCRE's EBITDA margin to
expand when the company starts to recognise revenue from previous
contracted sales.
DERIVATION SUMMARY
CCRE's contracted sales of CNY53.7 billion in 2018 are comparable
with those of 'BB-' rated peers, although it has maintained a
healthier financial profile. Yuzhou Properties Company Limited
(BB-/Stable) had contracted sales of CNY56.0 billion in 2018 and
KWG Group Holdings Limited (BB-/Stable) had CNY65.5 billion.
CCRE's leverage ratio, measured by net debt/adjusted inventory on a
proportionately consolidated basis, was 31% in 2018, well below the
'B+' and 'B' rated peers' ratio of 40%-60% and in line with 'BB-'
rated peers' ratio of 20%-45%. However, CCRE's leverage ratio may
remain at 31%-33% in 2019-2020.
CCRE's EBITDA margin of 18% in 2017 was near the bottom of the
'BB-' peers' range of 18%-25% due to the company's destocking
strategy. However, Fitch expects CCRE's EBITDA margin to rise to
19%-25% in 2018-2020 as revenue from projects with a higher
contracted sales ASP will start to be recognised and there will
also be revenue increases from the company's higher-margin rental
property and project management businesses.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Total contracted sales by gross floor area to increase by 13%
in 2019 and 11% in 2020
- Average selling price for contracted sales to increase by up to
1% a year in 2019-2020
- EBITDA margin (excluding capitalised interest) to reach 19% in
2018 and 24%-25% in 2019-2020
- Land acquisition budget to be 22%-26% of total contracted sales
for 2018-2020 for the company to maintain its land bank at
approximately five years of contracted sales (28% in 2017).
RATING SENSITIVITIES
Developments That May, Individually or Collectively, Lead to
Positive Rating Action
- Leverage, measured by net debt/adjusted inventory on a
proportionately consolidated basis, persistently at 30% or below,
while the company maintains its leading position in Henan province
Developments That May, Individually or Collectively, Lead to
Negative Rating Action
- A decline in contracted sales for a sustained period
- Leverage at 40% or above for a sustained period
- EBITDA margin at below 18% for a sustained period
LIQUIDITY
Ample Liquidity: The company had total cash of CNY17.8 billion
(including restricted cash of CNY3.6 billion) as of December 2018,
sufficient to cover short-term debt of CNY5.3 billion maturing in
one year.
Diversified Funding Channels: CCRE had a total debt CNY19.8 billion
as of December 2018, consisting of bank loans, other loans, senior
notes and corporate bonds. There were unutilised banking facilities
of CNY55.6 billion. CCRE is listed on the Hong Kong stock exchange
and conducted an equity placement in 1H18 that raised about CNY800
million.
Stable Funding Cost: The average cost of borrowing was 7.0% in
2018, higher than 6.8%-6.9% in 2016-2017.
URUMQI GAOXIN: Fitch Affirms Long-Term IDR at BB+, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed China-based Urumqi Gaoxin Investment and
Development Group Co., Ltd.'s Long-Term Foreign- and Local-Currency
Issuer Default Ratings at 'BB+'. The Outlook is Stable.
UGID is a district level urban infrastructure developer located in
Urumqi High-tech Industrial Development Zone (New City) in the
Xinjiang Uyghur Autonomous Region in north-west China. UGID is one
of the two state-owned enterprises under the New City's government.
KEY RATING DRIVERS
Government Links: UGID's ratings are credit-linked to, but not
equalised, with Fitch's internal assessment of the creditworthiness
of the New City government. The link is based on the company's
'Very Strong' status, ownership and control, 'Strong' support track
record and expectations, 'Moderate' socio-political impact of
default and 'Very Strong' financial implications of default. These
factors mean there is a high likelihood UGID would receive
extraordinary support from regional authorities, if needed. UGID is
classified as a government-related entity (GRE) under Fitch's
criteria.
Status, Ownership, Control 'Very Strong': UGID remains 100%
directly owned and supervised by the Urumqi High-tech Industrial
Development Zone State-owned Assets Supervision and Administration
Commission (New City SASAC). Company directors and senior
management are mainly appointed or nominated by the district
government and UGID's major decisions, financial plans and debt
need the government's approval.
Support Track Record, Expectations 'Strong': UGID receives capital
injections and operating subsidies regularly from the New City
government. UGID received a CNY1.4 billion capital injection in
2018 and CNY1.7 billion in 2017. Capital injections over the last
10 years reached CNY7.8 billion, equivalent to about 30% of group
total assets at end-2018. Subsidies increased slightly in 2017 and
2018 to about CNY110 million per year, which was mainly to offset
interest expenses.
'Moderate' Socio-Political Implications of Default: UGID continued
in 2018 in its role of leading infrastructure development in New
City to attract businesses and corporations to the development
zone. The majority of UGID's revenue is from the government, which
is the main customer of the company's infrastructure development
and maintenance, and property rental businesses. UGID also provides
financial services, such as micro-loans and guarantees, to
enterprises in New City. The company has also rapidly expanded its
investments in regional enterprises over the past two years. A
default by UGID would affect the long-term economic development of
New City.
'Very Strong' Financial Implications of Default: UGID is the New
City government's most important financing platform for providing
public services to the district and the enterprises that operate in
the high-tech zone. This includes financing infrastructure projects
via public-private partnerships with the government since 2017.
About 80% of UGID's operating revenue in the last three years was
from the New City government. Its micro-loan and guarantee
businesses also benefit companies that cannot access commercial
bank loan facilities. Should UGID default, Fitch expects
infrastructure growth to slow in the medium term, and funding costs
to increase sharply for the private and public sector in this
region.
Weak Standalone Credit Profile: Fitch assesses UGID's standalone
credit profile at not higher than the 'b' category. The assessment
is based on the UGID's moderate level of revenue sustainability
during economic downturns, and a 'Weaker' assessment of cost
control and resource management. UGID's leverage ratio doubled to
12x by end-2018 from 5x-6x in 2015 and 2016 after it added debt in
2017 and profitability weakened in 2018 due to higher operating
costs. Fitch forecasts profitability to worsen in 2019-2021, with
UGID's management expecting gross margin to narrow to 30% by 2021
from 50% currently.
UGID's debt is likely to increase slightly to meet the investments
needed for its projects under construction and to expand its equity
investment portfolio. Net debt to Fitch-calculated EBITDA was 12x
at end-2018, and will increase to around 14x by the end of 2021.
Fitch expects EBITDA to gross interest coverage to be around
1x-1.5x over 2019-2021.
RATING SENSITIVITIES
A change in Fitch's assessment of the creditworthiness of New City
or its commitment to support UGID, or a revision of Fitch's
perception of the district's ability to provide subsidies, grants
or other legitimate resources allowed under China's policies and
regulations may trigger rating action on UGID.
An upgrade may result from stronger support track record and
expectations, stronger socio-political implications of a default,
or a significant strengthening of UGID's standalone credit profile
to within four notches of Fitch's internal assessment of the
creditworthiness of New City. A downgrade may result from Fitch's
assessment of a weakening in any of UGID's key rating drivers.
FULL LIST OF RATING ACTIONS
Urumqi Gaoxin Investment and Development Group Co., Ltd.
Long-Term Foreign-Currency IDR affirmed at 'BB+'; Outlook Stable
Long-Term Local-Currency IDR affirmed at 'BB+'; Outlook Stable
USD273 million 5.2% senior unsecured notes due 2020 affirmed at
'BB+'
YIDA CHINA: CMIG Debt Crisis Triggers CNY8.7 Billion Default
------------------------------------------------------------
Mingtiandi reports that Hong Kong-listed Yida China announced on
April 22 that a financial crisis at its parent company had left it
facing a default on loans with an outstanding principal of CNY8.75
billion (US$1.3 billion), with the developer saying it has yet to
reach an agreement with creditors to resolve its outstanding
debts.
According to Mingtiandi, the announcement to the stock exchange was
the second time this month that the business park developer had
warned of defaults, with its reported liabilities having risen from
CNY4.28 billion at the time of the earlier statement on April 10.
Mingtiandi relates that the company's financial failure, which was
triggered by parent firm China Minsheng Investment Group's (CMIG)
own defaults, has made its CNY8.75 billion loan balance immediately
payable, although Yida, which is the parent company of Dalian
Software Park, said it remains hopeful that it can reach a
settlement with its creditors.
In the new statement, Yida representatives admitted to facing
difficulties renegotiating their loans, "As stated in the Previous
Announcement, the Group had used its best endeavours to communicate
and negotiate with the relevant lenders to obtain a waiver, and
while the Group has not been able to obtain waivers from the
respective lenders as at the date of this announcement," Mingtiandi
relays.
The company stressed, however, that its financial position was
stable, which gave it confidence in its ability to reach an
agreement with its creditors.
According to Mingtiandi, Yida's annual report showed that the
company achieved CNY8.54 billion in contracted sales in 2018,
representing an increase of 17.5 percent year-on-year. The
developer had about CNY17.02 billion in debt at year-end, with the
company's net liability ratio standing at 128.6 percent.
At the time, Yida China had CNY1.8 billion in cash on hand and
short-term borrowings due within one year stood at CNY7.65 billion,
of which CNY4.94 billion has since been repaid or renewed, the
company, as cited by Mingtiandi, said. Another CNY490 million of
debit is secured by deposits of an equivalent amount and the
company said it has sufficient collateral to balance the remaining
amount of CNY2.22 billion to be repaid before December 31, 2019,
adds Mingtiandi.
About Yida China
Yida China mainly engages in the development, sales, and operation
of business parks, as well as the development and sales of
residential properties in China. The Dalian-based company owns six
business parks and manages 26 parks on behalf of other owners in
China. While the company's land reserves span eight cities, 75% are
located in Dalian as of end-2018. Some 83% of contracted sales are
from its business parks, and the remaining are from stand-alone
property projects.
Founded in 1997 by Sun Yinhuan, Yida was listed on the Hong Kong
stock exchange in June 2014. As of April 2019, CMIG owns 61% of the
company.
As reported in the Troubled Company Reporter-Asia Pacific on April
22, 2019, S&P Global Ratings lowered its long-term issuer credit
rating on Yida China Holdings Ltd. to 'CCC' from 'CCC+'. At the
same time, S&P lowered its long-term issue rating on the company's
senior unsecured notes to 'CCC-' from 'CCC'.
=========
I N D I A
=========
AJIT SOLAR: Insolvency Resolution Process Case Summary
------------------------------------------------------
Debtor: Ajit Solar Private Limited
National Motors Building, M.I. Road
Jaipur RaJ. 302001
Insolvency Commencement Date: April 24, 2019
Court: National Company Law Tribunal, Jaipur Bench
Estimated date of closure of
insolvency resolution process: October 23, 2019
Insolvency professional: Sandeep Kumar Gupta
Interim Resolution
Professional: Sandeep Kumar Gupta
H.No. 93, 2nd Floor DDA Site-1
Shankar Road New Rajinder Nagar
New Delhi, Delhi 110060
E-mail: sandeepkumar.gupta@gmail.com
- and -
Witworth Insolvency Professionals
Pvt. Ltd.
C-124, Ground Floor, Lajpat Nagar-I
New Delhi 110024
E-mail: cirp.aspl@gmail.com
Last date for
submission of claims: May 10, 2019
BHA ASSOCIATES: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: BHA Associates Private Limited
40/43, Second Floor, C.R. Park
New Delhi 110019
Insolvency Commencement Date: April 30, 2019
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: October 27, 2019
Insolvency professional: Pawan Kumar Agrawal
Interim Resolution
Professional: Pawan Kumar Agrawal
L-2/37A, Ground Floor, Ekta Square
DDA, Kalkaji
New Delhi 110019
E-mail: irp@ppglegal.com
Last date for
submission of claims: May 14, 2019
CENTURY AGRO: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Century Agro Chemicals Pvt. Ltd.
Registered office:
Flat No. C/23,, Shivam Complex
Pune Solapur Road
Near Shankar Math Hadaspar, Pune
Maharashtra 411028
Insolvency Commencement Date: May 1, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: October 28, 2019
Insolvency professional: Prakash Dattatraya Naringrekar
Interim Resolution
Professional: Prakash Dattatraya Naringrekar
503 A, Blue Diamond CHS Ltd
Chincholi Bunder
Link Road Junction, Malad West
Mumbai 400064
Phone: 9322714508 / 022 66991469
E-mail: prakash03041956@gmail.com
cacpl.cirp@gmail.com
Last date for
submission of claims: May 15, 2019
CHANDAN TEXTILES: ICRA Maintains 'B' Rating in Not Cooperating
--------------------------------------------------------------
ICRA said the ratings for the INR6.60-crore bank facilities of
Chandan Textiles continues to remain under 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]B (Stable) ISSUER NOT
COOPERATING."
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term: Fund 3.30 [ICRA]B (Stable ISSUER NOT
based/CC COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long term: Fund 3.30 [ICRA]B (Stable ISSUER NOT
based TL COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
Chandan Textiles is a proprietorship firm established in the year
2002 by Mr. Chandan Malhotra. The firm is engaged in the business
of manufacturing and trading of pure silk fabrics like chiffon,
georgette and crape. The concern generates ~70% of the revenue from
the state of Karnataka, followed by 20% from Kolkata and the rest
from other States.
CONTEC SYNDICATE: Ind-Ra Moves BB- LT Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Contec Syndicate
Private Limited's 'IND BB-' Long-Term Issuer Rating to the
non-cooperating category. The Outlook was Stable. 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:
-- INR30 mil. Fund-based working capital limit migrated to non-
cooperating category with IND BB- (ISSUER NOT COOPERTAING)
rating; and
-- INR120 mil. Non-fund-based working capital limit migrated to
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May
3, 2018. Ind-Ra is unable to provide an update, as the agency does
not have adequate information to review the ratings.
COMPANY PROFILE
Contec Syndicate belongs to the category of special class civil
contractors with the governments of Andhra Pradesh and Telangana.
DELHI INTERNATIONAL: Moody's Rates New $350MM Sr. Sec. Bond 'Ba2'
-----------------------------------------------------------------
Moody's Investors Service has assigned a Ba2 senior secured rating
to Delhi International Airport Limited's (DIAL, Ba2 stable)
proposed 10 year senior secured bond of up to USD350 million.
Proceeds from the proposed bond will be used to help fund a major
expansion to increase the passenger handling capacity of Indira
Gandhi International Airport to up to 100 million passengers per
annum, which the company expects will cost up to INR98 billion over
a three-year development phase.
RATINGS RATIONALE
The proposed bond's Ba2 senior secured rating reflects the
airport's strong market position and robust passenger traffic,
which will likely grow at a high single-digit percentage per annum
over the next 18 months under Moody's base case scenario.
At the same time, Delhi Airport's ratings are constrained by (1)
its planned capacity expansion, which will exert downward pressure
on its financial metrics; (2) the evolving regulatory environment
in India; and (3) its obligation to pay 45.99% of its revenue to
the Airports Authority of India as a concession fee.
After accounting for the proposed USD notes, Moody's expects that
DIAL's funds from operations/debt will remain weak over the next
2-3 years, with a very limited buffer above the minimum tolerance
level of 3%-4%.
Moody's base case financial projections assume that (1)
aeronautical tariffs will stay at the current level during the
third regulatory period between April 2019 and March 2024; and (2)
there is no material uplift to the airport's financial position
arising from its arbitration proceedings with the Airports
Authority of India on the calculation of the 45.99% concession
fee.
Despite its elevated leverage position, DIAL's liquidity position
is strong, with cash holdings and short-term investments totaling
INR26 billion as at March 2019. These assets provide the airport
with additional financial flexibility over the next 12-18 months.
Proceeds from the proposed bond issuance--which management intends
to retain as cash on DIAL's balance sheet — will further
strengthen DIAL's liquidity position and reduce the additional
funding it will need to complete the planned expansion.
The stable outlook reflects Moody's expectation that DIAL's credit
metrics will remain above the minimum tolerance level for its
credit ratings over the next 12-18 months, backed by the airport's
strong liquidity position and solid passenger traffic growth.
Upward ratings movement in the near term is unlikely, given that
the airport's financial leverage will remain elevated during the
expansion phase under Moody's base case assumptions.
On the other hand, DIAL's ratings could face downward pressure if
the airport's funds from operations to debt fall below 3%-4% on a
sustained basis, which could result from: (1) a further increase in
the cost of the expansion or delay to the current expansion
program; (2) underperformance in DIAL's aeronautical or
non-aeronautical revenue relative to Moody's expectation; or (3)
lack of progress in further land monetization.
Moody's could also downgrade the ratings if there is a reduction in
the available funds at the airport for the expansion, because of
dividend payments or related-party transactions.
Moody's has used its Joint Default Analysis approach for Government
Related Issuers in assessing DIAL's ratings, because the company is
more than 20% government-owned through the Airports Authority of
India, a government agency.
DIAL's Ba2 corporate family rating combines: (1) the company's
Baseline Credit Assessment (BCA) of ba2; and (2) the low likelihood
of support that Moody's believes the Government of India (Baa2
stable) will provide to DIAL in the event that extraordinary
financial support is required. This assumption of support results
in the absence of uplift to the company's BCA.
The methodologies used in this rating were Privately Managed
Airports and Related Issuers published in September 2017, and
Government-Related Issuers published in June 2018.
Delhi International Airport Limited is the concessionaire for
Indira Gandhi International Airport, under an Operations,
Management and Development Agreement, entered into in 2006 with the
Airports Authority of India, a government agency.
The concession is for a 30-year period, and DIAL has the option to
extend it for another 30 years, subject to meeting defined
performance criteria.
DHARMDEEP COMMODITIES: ICRA Withdraws B+ Rating on INR3cr Loan
--------------------------------------------------------------
ICRA has withdrawn the ratings assigned to Dharmdeep Commodities
Pvt. Ltd. at the request of the company, based on the no-objection
certificate provided by its banker.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Overdraft 3.00 [ICRA]B+ (Stable); Withdrawn
EPC and LCBD 80.00 [ICRA]B+ (Stable)/A4;
Withdrawn
VaR Limits 10.00 [ICRA]A4; Withdrawn
Incorporated in 2011, Dharmdeep Commodities Pvt. Ltd. is involved
in trading of cotton bales and yarns in the domestic as well as
international market. DCPL was incorporated by Mr. Pukhraj Jain and
his family members. The Jain family has more than two decades of
experience in the cotton trading business. The company operates
from Ahmedabad in Gujarat.
DWARKADHIS PROJECTS: Ind-Ra Migrates 'D' Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Dwarkadhis
Projects Private Limited's 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:
-- INR725 mil. Term loan (Long-term) due on December 2019
migrated to non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating; and
-- INR424 mil. Non-fund-based working capital (Long-term/Short-
term) migrated to non-cooperating category with IND D (ISSUER
NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
April 19, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Dwarkadhis Projects is a real estate developer and construction
company founded in 2006. It has constructed and delivered a
residential project, namely Aravali Heights, in Dharuhera. The
group is constructing another residential project, namely Casa
Romana (erstwhile Aravali Greenvile), in Dharuhera.
GOPALA POLYPLAST: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Gopala Polyplast Limited
Plot No. 485, Santej Vadsar Road
Santej, Tal. Kalol
Gandhinagar 382721, Gujarat
Insolvency Commencement Date: May 2, 2019
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: October 28, 2019
Insolvency professional: Vikash Jain
Interim Resolution
Professional: Vikash Jain
204, Wall Street-1
Near Gujarat College, Ellisbridge
Ahmedabad 380006
E-mail: ca.vikasjain1@icai.org
cirp.gopala@gmail.com
Last date for
submission of claims: May 17, 2019
GPT STEEL: Insolvency Resolution Process Case Summary
-----------------------------------------------------
Debtor: GPT Steel Industries Limited
Registered office:
M/s. GPT Steel Industries Limited
102, Dev Shurti Complex
Nr. HCG Medisurge Hospital
Mithakhali, Ellisbridge
Ahmedabad 380006, Gujarat State
Corporate office:
509 B Sagar Tech Plaza
Andheri Kurla Road
Sakinaka, Andheri (East)
Mumbai
Insolvency Commencement Date: May 3, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: October 30, 2019
Insolvency professional: Divyesh Desai
Interim Resolution
Professional: Divyesh Desai
B2 402B Marathon Innova
Off Ganpatrao Kadam Marg, Lower Parel
Mumbai 400013
E-mail: divyeshdesai@singhico.com
Last date for
submission of claims: May 17, 2019
GSR VENTURES: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated GSR Ventures
Private Limited's 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:
-- INR20 mil. Fund-based working capital limits migrated to non-
cooperating category with IND BB (ISSUER NOT COOPERATIONG) /
IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR350 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 May
15, 2018. Ind-Ra is unable to provide an update, as the agency does
not have adequate information to review the ratings.
COMPANY PROFILE
GSR Ventures undertakes civil construction, mainly canal earthwork
excavation and construction of bridges. The company is based in
Hyderabad.
HIRA COTTON: ICRA Maintains 'B+' Rating in Not Cooperating
----------------------------------------------------------
ICRA said the ratings for the INR9.00-crore bank facilities of Hira
Cotton Fibers (HCF) continue to remain in the 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]B+ (Stable)
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term 7.00 ICRA]B+ (Stable) ISSUER NOT
Cash Credit COOPERATING; Rating continue
to remain in 'Issuer Not
Cooperating' category
Long Term- 2.00 ICRA]B+ (Stable) ISSUER NOT
Term Loan COOPERATING; Rating continue
to remain in 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.
HCF, a partnership firm promoted by Khandelwal family of Sendhwa,
is engaged in cotton ginning and pressing. HCF's ginning unit based
at Chopda in District Jalgaon (Maharashtra) is equipped with 30
ginning machines and a bale pressing machine, whereby it
manufactures lint from kapas (raw cotton) and undertakes pressing
operation to produce cotton bales. Cotton seed, which is by-product
of ginning operation, is sold to oil extraction units.
INDO DUTCH: ICRA Maintains 'B-' Rating in Not Cooperating
---------------------------------------------------------
ICRA said the ratings for the bank facilities of Indo Dutch Carpet
Mfg. Pvt. Ltd. (IDCMPL) continues to remain under 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]B- (Stable);
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based- 8.50 [ICRA]B-(Stable); ISSUER NOT
Term Loan COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating
Fund Based- 1.50 [ICRA]B-(Stable); ISSUER NOT
Cash Credit COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
Incorporated in 2006, as PCP Infrastructure Pvt Ltd, the company
changed its name to Indo Dutch Carpet Mfg Pvt Ltd in 2008. The
manufacturing facilities of the company are located at Pathredi and
Khuskhera at Bhiwadi district, Rajasthan. The commercial production
from Pathredi and and Khuskhera facilities started from December
2010 and July 2011 respectively.
INDORE DEWAS: Ind-Ra Affirms 'D' Rating on INR5,500.2BB Bank Loan
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Indore Dewas
Tollways Limited's (IDTL) bank loans as follows:
-- INR5,500.2 bil. (reduced from INR5,500.7 bil.) Bank loans
(Long-term) affirmed with IND D rating.
KEY RATING DRIVERS
The affirmation reflects continued delays in debt serving by IDTL,
due to a tight liquidity position, resulting from
lower-than-expected toll collection.
RATING SENSITIVITIES
Positive: Timely debt servicing for three consecutive months will
be positive for the rating.
COMPANY PROFILE
IDTL is a special purpose vehicle incorporated to implement a lane
expansion (from four to six lanes) project on a design, build,
finance, operate and transfer basis under a 25-year concession from
National Highways Authority of India ('IND AAA'/Stable). IDTL is
owned by Gayatri Group.
JAI MATA: Ind-Ra Migrates 'B+' LT Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Jai Mata Di
Enterprises' 'IND B+' Long-Term Issuer Rating to the
non-cooperating category. The Outlook was Stable. 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 B+ (ISSUER NOT COOPERATING)' on
the agency's website.
The instrument-wise rating actions are:
-- INR16.53 mil. Long-term loan due on November 2019 - April 2025
migrated to non-cooperating category with IND B+ (ISSUER NOT
COOPERATING) rating;
-- INR40 mil. Fund-based limits migrated to non-cooperating
category with IND B+ (ISSUER NOT COOPERATING) rating; and
-- INR90 mil. Non-fund-based limits migrated to non-cooperating
category with IND A4 (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May
31, 2018. Ind-Ra is unable to provide an update, as the agency does
not have adequate information to review the ratings.
COMPANY PROFILE
Jai Mata Di executes the work of laying of optical fibers in Madhya
Pradesh and Chhattisgarh for government and private organizations.
MAHADEV MOTORS: CRISIL Reaffirms 'B+' Rating on INR11cr Loan
------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the
long-term bank facilities of Mahadev Motors Private Limited
(MMPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL B+/Stable (Reaffirmed)
Channel Financing 5 CRISIL B+/Stable (Reaffirmed)
Inventory Funding
Facility 11 CRISIL B+/Stable (Reaffirmed)
The rating continues to reflect MMPL's weak financial risk profile
and susceptibility to the risk of economic slowdown. These
weaknesses are partially offset by the promoter's established
relationship with the principal, Hyundai Motors India Ltd (HMIL;
rated 'CRISIL A1+') and MMPL's efficient working capital
management.
Analytical Approach
Unsecured loans of INR2.20 crore received from the directors have
been treated as neither debt nor equity as the loans are expected
to remain in the business over the medium term and are
interest-free.
Key Rating Drivers & Detailed Description
Weaknesses:
* Weak financial risk profile: The financial risk profile is
constrained by a highly leveraged capital structure: . The company
reported large total outside liabilities to tangible networth
(TOLTNW) ratio was 13 times in the two fiscals ended March 31,
2018.
* Susceptibility to risks pertaining to economic cyclicality,
geographical concentration, and intense competition: The automotive
dealership business is highly vulnerable to economic cycles. Any
uncertainty in the economy or monetary tightening measures such as
an increase in interest rates and fuel price can substantially
impact demand for vehicles, and the business of automotive dealers.
Intense competition in the auto dealership industry constrains
scalability: MMPL's revenue was a modest INR79 crore in fiscal
2018. Furthermore, presence in just one location makes the company
vulnerable to demand and competition in the area.
Strength:
* Established position in the auto dealership market for HMIL cars
in Faridabad: MMPL has an established market position among HMIL
dealers in Faridabad. The showroom is fully equipped with sales,
service and spares (3S). MMPL began dealership of Hyundai in
November 2013.
* Efficient working capital management: MMPL maintains moderate
inventory of 45-60 days, mainly comprising vehicles. Inventory is
however, subject to negligible loss, as any drop-in value is
compensated by the principal, via various schemes. As inventory is
likely to remain moderate, the price volatility risk should be low
over the medium term.
Receivables risk is also low, as vehicles are generally delivered
and registered in the name of customers, only on receipt of full
payment and delivery order from the financial institutions backing
the purchase. The company also caters to a wide range of individual
and corporate customers, which keeps customer concentration risk
low.
Liquidity
Cash accrual is expected at INR1.0-1.24 crore against debt
obligation of around INR0.36 crore per annum over the medium term.
However, bank limit utilisation has been moderate, with cash credit
utilised at an average of 34%, and inventory funding utilised at an
average of 95% over the 12 months through March 2019. Current ratio
was low at 0.87 time as on March 31, 2018.
Outlook: Stable
CRISIL believes MMPL will continue to benefit from its established
position and the promoters' extensive experience. The outlook may
be revised to 'Positive' if higher cash accrual, driven by growth
in revenue and profitability, and efficient working capital
management strengthen the financial risk profile and liquidity. The
outlook may be revised to 'Negative' if liquidity weakens because
of large working capital requirement or debt-funded capital
expenditure.
MMPL, incorporated in 2012, is a dealer for passenger cars of HMIL.
Mr Pradeep Garg is the promoter. The showroom in Faridabad is
equipped with 3S (sales, service, and spares) facilities.
MAHANADI EDUCATION: Ind-Ra Maintains BB Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Mahanadi
Education Society's bank facilities' ratings in 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
continue to appear as 'IND BB (ISSUER NOT COOPERATING)' on the
agency's website.
The detailed rating actions are:
-- INR74.5 mil. Term loan due on September 2019 maintained in
non-cooperating category with IND BB (ISSUER NOT COOPERATING)
rating; and
-- INR100 mil. Working capital facility maintained in non-
cooperating category with IND BB (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The rating was last reviewed on May
2, 2017. Ind-Ra is unable to provide an update, as the agency does
not have adequate information to review the ratings.
COMPANY PROFILE
Founded in 1994, Mahanadi Education Society is registered with the
Registrar of Firms and Societies, Government of Madhya Pradesh. The
society manages and operates Raipur Institute of Technology (1995),
Kaanger Valley Academy (2005), RIT College of Nursing (2008), RIT
College of Management (2009), RIT College of Hotel Management
(2016) and RIT College of Education (2013).
MAX PROPERTIES: ICRA Maintains 'D' Rating in Not Cooperating
------------------------------------------------------------
ICRA says the long-term ratings for the bank facilities of Max
Properties Private Limited continues to be in non-cooperating
category. The rating is denoted as "[ICRA]D ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term, Fund 7.70 [ICRA]D; ISSUER NOT
based facilities COOPERATING; Continues to
remain in non-cooperating
category
Long-term, 1.80 [ICRA]D; ISSUER NOT
Unallocated COOPERATING; Continues to
remain in non-cooperating
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
Max Properties Private Limited is a Madurai-based real estate
developer/construction company. It was established in 2009 by Mr.
Elango Packiaraj who was earlier executing several government
contracts in his personal capacity. Such executed projects include
construction of staff quarters in Tier II and Tier III cities for
Tamil Nadu Electricity Board, BSNL Telephones, TWAD Board and Tamil
Nadu Police Housing Corporation. MPPL undertakes developing or
co-developing on joint venture (JV) basis real estate projects for
residential or commercial-cum-residential, multi-storied projects
in Madurai and Theni. The company also undertakes civil
construction for the projects it develops and has the necessary
labor and plant & machinery for the same. The company is closely
held by the family of the company's promoter, Mr. Elango Packiaraj.
The company has not disclosed any other associate/group companies.
MISHRA POLYPACKS: CRISIL Assigns 'B' Rating to INR21cr Loan
-----------------------------------------------------------
CRISIL has assigned its ratings 'CRISIL B/Stable' on the long term
bank facility of Mishra Polypacks Private Limited (MPPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 21 CRISIL B/Stable (Assigned)
The rating reflects the subdued financial risk profile, exposure to
intense competition and susceptibility to volatility in steel
prices. The rating also takes into consideration extensive
experience of promoters in the steel trading industry.
Analytical Approach
Unsecured loans from promoters of INR1.97 crore is treated as
neither debt nor equity, as it is expected to remain in the
company.
Key Rating Drivers & Detailed Description
Weaknesses:
* Susceptibility to volatility in steel prices: The operating
profitability remain exposed to fluctuation in steel prices, which
have been volatile in the past. Also, profitability is expected to
remain low due to trading nature of business.
* Average financial risk profile: The financial risk profile of the
company is average as reflected in moderate net-worth of INR3.5
crores, high total outside liabilities to adjusted net-worth ratio
of 12.3 times as on March 31, 2019. The debt protection metrics are
modest as reflected in interest coverage of 1.2 times and net cash
accruals to total debt of 0.02 times in fiscal 2019. Financial
profile is expected to remain weak due to low cash accruals.
Strength:
* Promoters' extensive experience in steel trading industry:
Promoter's experience of over 20 years has helped develop a deep
understanding of the dynamics of local market; this helps
anticipate price trends and calibrate purchasing and stocking
decisions and establish strong relations with customers and
suppliers.
Liquidity
Liquidity is weak marked by high utilized bank limits with average
utilization of 88% in the cash credit limit of INR21 crores in the
past 12 months ending March 2019. Company is expected to generate
cash accruals of INR0.4-0.6 crores against repayment obligations of
around INR0.05 crores in the medium term. Promoters are likely to
provide support in the form of unsecured loan as and when needed to
support liquidity.
Outlook: Stable
CRISIL believes MPPL will continue to benefit over the medium term
from its promoters' extensive industry experience. The outlook may
be revised to 'Positive' if sustainable healthy growth in accrual
or sizeable equity infusion leads to improvement in financial
profile. Conversely, the outlook may be revised to 'Negative' if
financial risk profile, and liquidity, weakens further, because of
a decline in accrual or an increase in working capital requirements
or any large, debt-funded capital expenditure (capex).
MPPL, incorporated in 1994 by Mr. Sushil Kumar Mishra. It
manufactures polypropylene (PP) bags and trades various steel
products. Manufacturing facility for PP bags is located in
Hyderabad while company also has warehouses for trading activities
in Hyderabad, Bhagalpur and Kurnool.
MOBILE TELECOM: CRISIL Moves 'D' Rating to Not Cooperating
----------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Mobile
Telecommunications Limited (MTL) to 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft 14 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL has been consistently following up with MTL for obtaining
information through letters and emails dated April 15, 2019 and
April 22, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'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 MTL. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MTL is consistent
with 'Scenario 4' outlined in the 'Framework for Assessing
Consistency of Information '.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of MTL to 'CRISIL D Issuer not cooperating'.
Established in 1995 by Mr Anil Ved Mehta, MTL manufactures and
trades in electronic hardware. It is listed on the Bombay Stock
Exchange.
OIL COUNTRY: ICRA Migrates 'D' Rating to Not Cooperating
--------------------------------------------------------
ICRA has moved the long-term and short-term ratings for the bank
facilities of Oil Country Tubular Limited (OCTL) to the 'Issuer Not
Cooperating' category. The ratings are now denoted as "[ICRA]D
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based 125.00 [ICRA]D ISSUER NOT COOPERATING;
Limits Rating moved to the 'Issuer Not
Cooperating' category
Non-fund-based 62.00 [ICRA]D ISSUER NOT COOPERATING;
limits Rating moved to the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.
Incorporated in 1985, OCTL is primarily engaged in the processing
of Oil Country Tubular Goods used in the Oil and Gas Exploration
and Production (E&P) industry. OCTL's product range comprises
largely of drill pipes, casing pipes, production tubing and
couplings/premium connections/tool joints. OCTL is at present the
only domestic processor of drill pipes. The company has primarily
positioned itself to cater to the requirements of E&P companies in
India like ONGC Limited, OIL India Limited etc; OCTL also exports
its products to countries in the North and South Americas and
countries in Africa and the Middle East. The company is public
listed and is promoted by the Hyderabad based Kamineni group which
has interests in steel, healthcare and education. The company's
manufacturing unit is located at Narketpally in the Nalgonda
District of Telangana.
PARA PRODUCTS: ICRA Maintains 'B+' Rating in Not Cooperating
------------------------------------------------------------
ICRA said the ratings for the INR19.20-crore bank facilities of
Para Products Private Limited (PPPL) continue to remain under
'Issuer Not Cooperating' category. The ratings are denoted as
"[ICRA]B+(Stable) and [ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund 9.20 [ICRA]B+ (Stable); ISSUER NOT
Based/Cash COOPERATING; Continues to
Credit remain under the 'Issuer Not
Cooperating' category
Long Term/ (10.00) [ICRA]B+ (Stable)/A4; ISSUER
Short Term- NOT COOPERATING; Continues to
Interchangeable remain under the 'Issuer Not
Cooperating' category
Long Term/ 10.00 [ICRA]B+ (Stable)/A4; ISSUER
Short Term- NOT COOPERATING; Continues to
Fund based/Non remain under the 'Issuer Not
Fund Based Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available and
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
PPPL is a part of the Globus Pharmachem Group, based in Ghaziabad,
Uttar Pradesh. The company is engaged in manufacturing bulk drugs.
The company has manufacturing capacities for 4,800 Tonnes Per Annum
(TPA) of paracetamol. Globus Pharmachem, formerly known as Goyal
Group of Industries, is engaged in manufacturing dye intermediates,
plasticisers, industrial chemicals and pharmaceuticals.
PATIDAR AGRICARE: CRISIL Assigns 'B' Rating to INR2.75cr Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' ratings to the long term
bank facilities of Patidar Agricare (PA).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit .5 CRISIL B/Stable (Assigned)
Term Loan 2.25 CRISIL B/Stable (Assigned)
The ratings reflect the Firm's small scale of operations and its
average financial risk profile. These weaknesses are partially
offset by extensive experience of partners in the cold storage
industry.
Key Rating Drivers & Detailed Description
Weaknesses
* Small scale of operations: With an operating income of INR1.72
crore in fiscal 2018 and cold storage capacity of 1 lakh gunny bags
(50 Kg each) per annum, scale remains modest in the competitive
cold storage industry that has many small players with marginal
capacities.
* Average financial risk profile: The networth remained modest at
INR2.70 crore as on March 31, 2018, due to sizable withdrawal of
around INR1.99 Crore in FY18. The gearing was moderate at 1.17 time
as on march 31, 2018. Debt protection metrics too were moderate,
with: interest coverage of around 2.66 times in fiscal 2018.
Strengths
* Partner's extensive industry experience: PA has a moderate
business risk profile, backed by its partner's extensive experience
in the cold storage industry. The company has been in the business
for around five years. The partner's longstanding association with
farmers and traders has enabled it to ensure healthy utilisation of
its storage capacity.
Liquidity
Liquidity is moderate, driven by expected cash accrual of INR0.65 '
0.75 crore each in fiscals 2019 and 2020, against maturing debt of
around INR0.6 crore each year. The fund-based limit of INR0.50
crore was utilised at an average of 90%. The partners have also
extended unsecured loans of INR0.11 Crore as on March 31, 2018.
Outlook: Stable
CRISIL believes PA will continue to benefit from the extensive
industry experience of its partners. The outlook may be revised to
'Positive' if cash accrual increases and working capital management
improves. The outlook may be revised to 'Negative' if considerably
low cash accrual, or significant debt-funded capital expenditure
weakens the financial risk profile, particularly liquidity.
PA was incorporated in 2015, promoted by Mr Dilip Patel and his
family members. The company has cold storage facilities (capacity
of 5000 MTPA ) in dehgam, Gujarat, for the potato traders and
farmers of the state.
PINTER FA.NI: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Pinter Fa.Ni Asia Private Limited
9, Gurusamy Nagar, Thanneer Pandhal Road
Peelamedu Coimbatore 641004
Insolvency Commencement Date: April 26, 2019
Court: National Company Law Tribunal, Chennai Bench
Estimated date of closure of
insolvency resolution process: October 23, 2019
Insolvency professional: Gopalsamy Ganesh Babu
Interim Resolution
Professional: Gopalsamy Ganesh Babu
986, H Block, 24th Street
Anna Nagar West
Chennai 600040
E-mail: babu@onstepsolution.net
- and -
41/16A, Nelson Manickam Road
Choolaimedu, Chennai 600094
Mobile: 8248346152
E-mail: babu@finrespro.com
Last date for
submission of claims: May 18, 2019
PNG TOLLWAY: ICRA Maintains 'D' Rating in Not Cooperating
---------------------------------------------------------
ICRA said the long-term rating for the bank facilities of PNG
Tollway Limited (PNG) continues to remain in the 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]D ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 1,198.91 [ICRA]D ISSUER NOT COOPERATING;
Rating continues to remain in
the 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.
PNG Tollway Private Limited is a SPV promoted jointly by L&T group
(L&T Infrastructure Development Projects Ltd.--61% shareholding and
L&T Limited--13% shareholding) and Ashoka Buildcon Limited
(ABL--26% shareholding) for the six-laning of National Highway 3
from Pimpalgaon to Gonde in Maharashtra. The Project Highway, with
a total length of 60.0 kms, was awarded on the
Design-Build-Finance-Operate-Transfer (DBFOT) model under the NHDP
phase III. L&T Infrastructure Development Projects Ltd. (L&T IDPL)
is a subsidiary company of Larsen & Toubro Limited and is the
holding company of various infrastructure projects being developed
under the public private partnership (PPP) model. ABL undertakes
EPC contracts in segments like road, bridges, commercial buildings,
power transmission and distribution, etc. and has strong presence
in states of Maharashtra and Madhya Pradesh.
The project was awarded by the National Highways Authority of India
(NHAI) to the JV on a Build-Operate-Transfer (BOT) basis, with a
concession period of 20 years starting from January 2010. The total
project cost is INR1691.00 crore, which was funded by equity of
INR338.20 crore including mezzanine/quasi equity, and INR1352.80
crore of senior debt--i.e., a debt-equity ratio of around 4:1. The
project was scheduled to achieve Commercial Operation Date (COD) in
July 2012; however, owing to delays on account of unavailability of
Right of Way, the final COD was achieved in May 2014. The project
was terminated in March 29, 2016 and the toll and maintenance
operations are taken over by NHAI.
PRAGATI GLASS: ICRA Maintains 'D' Rating in Not Cooperating
-----------------------------------------------------------
ICRA said the rating for INR25.50-crore bank facilities of Pragati
Glass Private Limited continues to remain under 'Issuer Not
Cooperating' category. The rating is now denoted as "[ICRA]D ISSUER
NOT COOPERATING". ICRA had earlier moved the ratings of PGPL to the
'ISSUER NOT COOPERATING' category due to non-submission of
requisite information by the entity to undertake surveillance of
the ratings.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based- 4.00 [ICRA]D ISSUER NOT COOPERATING;
Term Loan Rating continues to remain under
'Issuer Not Cooperating' category
Fund-based- 17.50 [ICRA]D ISSUER NOT COOPERATING;
Cash Credit Rating continues to remain under
'Issuer Not Cooperating' category
Non-Fund 4.00 [ICRA]D ISSUER NOT COOPERATING;
Based Limits Rating continues to remain under
'Issuer Not Cooperating' category
The rating action is based on best available information. As part
of its process and in accordance with its rating agreement with
PGPL, ICRA has been trying to seek information from the entity so
as to monitor its performance, but despite repeated requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information, and in line with SEBI's Circular
No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 01, 2016, ICRA's
Rating Committee has taken a rating view based on the best
available information.
The rating is based on no information on the entity's performance
since the time it was last rated in January 2018. The lenders,
investors and other market participants are thus advised to
exercise appropriate caution while using this rating as the rating
does not adequately reflect the credit risk profile of the entity.
The entity's credit profile may have changed since the time it was
last reviewed by ICRA; however, in the absence of requisite
information, ICRA is unable to take a definitive rating action.
Pragati Glass Private Limited (Pragati Glass) was incorporated in
1982 by Mr Dinesh Gupta to manufacture glass tableware and bottles.
The company primarily caters to the cosmetics and perfumes
industries, with a small presence in food and beverages (F&B).
Almost 60% of the company's sales are made to exports markets,
while around 15-20% of these are deemed exports to SEZs. The
company's manufacturing facility is located at Kosamba, Gujarat.
PRANEE INFRASTRUCTURE: ICRA Retains D Rating in Not Cooperating
---------------------------------------------------------------
ICRA said the ratings for the INR10.00-crore bank facilities of
Pranee Infrastructure Pvt. Ltd. continues to remain under 'Issuer
Not Cooperating' category. The rating is denoted as "[ICRA]D/D
ISSUER NOT COOPERATING."
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term/Short 10.00 [ICRA]D/D ISSUER NOT
term: Fund based/ COOPERATING Rating;
Non Fund based continues to remain
facilities under 'Issuer Not
Cooperating' category
Rationale
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
Incorporated in 2013, Pranee Infrastructure Private Limited (PIPL)
is a private limited company based out of Bangalore. The company
primarily operates as a civil contractor engaged in the
construction of residential complex and commercial buildings.
The company is mainly engaged in building construction, internal
electrical works, road works etc. The company has undertaken
various projects for Renaissance Holdings & Developers Private
Limited. Within the building construction segment, the company is
executing residential and commercial projects. The orders for civil
construction are procured majorly through networking of the
director and also through tenders awarded. Mr. Venkateswarlu, the
overall in-charge director has around 3 decades of experience in
construction industry. The commercial operations of the company
started in the month of September 2013.
PRECISE ENGINEERING: CRISIL Assigns B+ Rating to INR6.88cr Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long term
bank facilities of Precise Engineering Company (PEC).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Rupee Term Loan 1.12 CRISIL B+/Stable (Assigned)
Cash Credit 2 CRISIL B+/Stable (Assigned)
Proposed Long Term
Bank Loan Facility 6.88 CRISIL B+/Stable (Assigned)
The ratings reflect the modest scale of operations, large working
capital requirements and aggressive capital structure. These rating
weaknesses are partially offset by extensive experience of the
proprietor in the automotive industry, established relationships
with customers and adequate debt protection metrics.
Key Rating Drivers & Detailed Description
Strengths:
* Extensive experience of the partners: The partners have
experience of over 15 years in the engineering goods division. This
has helped establish strong relationship with customers and
suppliers and led to steady growth in revenues over the past three
fiscals.
* Comfortable debt protection metrics: Debt protection metrics is
comfortable marked by interest coverage and net cash accruals to
total debt ratios of more than 3.5 times and 0.17 times,
respectively, estimated in fiscal 2019.
* Weakness
Modest scale of operations: Revenue is modest with expected revenue
of INR18 crore estimated for fiscal 2019 (Rs. 9.7 crores in fiscal
2018). Modest scale restricts benefits from economies of scale and
restricts bargaining power with customers and suppliers.
* Aggressive capital structure: Financial risk profile is marked by
low net-worth of INR2.6 crores, and high total outside liabilities
to adjusted net-worth of 3.3 times, estimated as on March 31, 2019.
Capital structure is expected to improve with improvement in
networth, yet remain aggressive due to high dependence on external
debt.
* Large working capital requirements: Operations are working
capital intensive, marked by gross current assets of 145 days,
estimated as on March 31, 2019, marked by high debtors of 80-100
days, despite low inventory of 25 days.
Liquidity
Liquidity is weak with expected cash accruals of INR1.5-2 crore
which should be sufficient against term debt obligation of
INR0.2-0.7 crore over the medium term. Bank limit utilisation was
moderate at around 67% in the cash credit limit of INR2 crores for
the past nine months ended December 31, 2018. CRISIL believes that
bank limit utilization is expected to increase on account of large
working capital requirements with increasing scale of operations.
Outlook: Stable
CRISIL believes PEC will continue to benefit from the extensive
industry experience of its proprietors. The outlook may be revised
to 'Positive' if significant and sustained growth in revenue and
cash accrual, and improvement in working capital management, leads
to better capital structure. The outlook may be revised to
'Negative' if significant decline in revenue or margin, or stretch
in the working capital cycle, weakens the financial risk profile
and liquidity.
PEC, setup in 2004 is Nasik, Maharashtra, is a partnership firm
established by Milind Borade, Suraj Borade, Mahesh Sonawane and
Sudhir Bonawane. It manufactures and processes engine and
automotive parts.
PROSEED FOUNDATION: ICRA Maintains B+ Rating in Not Cooperating
---------------------------------------------------------------
ICRA said the rating for the INR10.0 crore bank facilities of
Proseed Foundation (Proseed) continues to remain in the 'Issuer Not
Cooperating' category. The rating is now denoted as "[ICRA] B+
(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 9.86 [ICRA]B+ (Stable) ISSUER NOT
Cash Credit COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
Unallocated 0.14 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
Incorporated in 2009, Proseed Foundation is a charitable trust
which has been promoted by the Career Point Group which has
presence in informal education (tutorial services) and formal
education (K-12 and higher education) segments. Till AY2014-15,
Proseed Foundation runs and operates Career Point Technical Campus
in Mohali (Punjab) which offers courses in engineering (B.Tech
course in 6 disciplines) and management (MBA in 3 disciplines).
However, since AY2015-16 there is change in scope of operations for
the trust with closing of this technical institute and start of
residential school campus. The concept was borrowed from the group
company Career Point Limited, which already runs similar kind of
residential cum school campus in Kota since FY2000. The course is
divided into two parts Foundation Years (Grade 6th to 10th) and
Target Years (Grade 11th, 12th and 12th pass). The trust is headed
by Mr. Om Prakash Maheshwari, who is also the executive director
and CFO of Career Point Limited (Flagship Company of the Career
Point group).
PURBANCHAL VENEERS: Ind-Ra Migrates BB+ Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Purbanchal
Veneers' 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:
-- INR8 mil. Cash Credit 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 May
18, 2018. Ind-Ra is unable to provide an update, as the agency does
not have adequate information to review the ratings.
COMPANY PROFILE
Purbanchal Veneers is engaged in the trading of timber and
manufacturing and trading of laminates and plywood. Its facilities
are located in Gandhidham, Gujarat. PV manufactures veneers.
REALTIME TECHSOLUTIONS: ICRA Cuts Rating on INR16cr Loan to D
-------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of
Realtime Techsolutions Private Limited (RTTS), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 6.00 [ICRA]D; downgraded from
Cash Credit [ICRA]BB (Negative)
Short-term- 3.00 [ICRA]D; downgraded from
Letter of Credit [ICRA]A4
Short-term- 16.00 [ICRA]D; downgraded from
Bank Guarantee [ICRA]A4
Rationale
The ratings downgrade is on account of devolvement of letter of
credit which remained unpaid for more than 30 days, as confirmed by
the company. The delays were on account of stretched receivables
from its defence customers and tight liquidity position.
Key rating drivers:
Credit Challenges
Delay in receipt of payment from defence customers: RTTS operates
in a working capital-intensive environment on account of long
payment cycles with Government defence entities on account of
procedural delays. The delay in receipt of payment from its defence
customers has resulted in stretched liquidity position.
Liquidity position:
RTTS's liquidity position remained stretched on account of delays
in receipt of payments from Government defence entities resulting
in high working capital intensity and fully utilised working
capital limits. The liquidity is also impacted by the company's
seasonal cash flows which are highly concentrated in third and
fourth quarter.
Established in 1998, Realtime Techsolutions Private Limited (RTTS)
is a niche player delivering end-to-end system integration and
software solutions for real-time environments in the defence sector
requiring extreme levels of performance reliability and robustness.
The company combines system integration and software capabilities
across multiple platforms and operating systems to deliver a range
of high quality products and subsystems designed and tested to
perform under the most severe of conditions. RTTS has a proven team
of more than 90 highly skilled and experienced personnel. The
company is also ISO-9001-2008 certified.
In FY2017, the company reported a net loss of INR8.8 crore on an
operating income of INR43.2 crore compared to a net profit of
INR3.0 crore on an operating income of INR57.5 crore in the
previous year.
ROLTA INDIA: Gets Out of Bankruptcy; NCLT Dismisses UB Plea
-----------------------------------------------------------
BloombergQuint reports that Rolta India Ltd. has become one of the
first defaulters to come out of the bankruptcy proceedings on the
basis of the April 2 Supreme Court order, with the Mumbai bench of
the National Company Law Tribunal dismissing the Union Bank of
India's plea against the company.
According to BloombergQuint, the NCLT has dismissed the insolvency
plea against the company by the state-run Union Bank of India which
had made a claim of more than INR1,200 crore from the company.
A Mumbai bench of the NCLT has held that Union Bank's bankruptcy
plea is not maintainable after the apex court had squashed the new
NPA recognition norms brought in by the central bank on April 2,
relates BloombergQuint.
A bench comprising VP Singh and R Duraisamy observed that Union
Bank had approached the tribunal on the basis of the Feb. 12, 2018
Reserve Bank of India circular but the same was declared ultra
vires by the Supreme Court.
On the basis of the Supreme Court, the petition is not maintainable
and the matter is thus dismissed, the bench said.
BloombergQuint says the now-squashed RBI circular had made even
one-day default as an NPA and make provisions and if the account is
not serviced in the next 90-days begin bankruptcy proceedings.
Following this, Rolta moved the apex court on April 12, questioning
the maintainability of the bankruptcy petition against it and the
apex court had asked the tribunal to maintain the status quo until,
BloombergQuint adds.
Rolta owes over INR1,200 crore to Union Bank which filed the
insolvency plea, BloombergQuint discloses. It is not immediately
known who are the other lenders and how much the company owes to
them at the aggregate level.
Rolta India is an IT services and solutions company providing
geographical information system services, engineering design
services and IT solutions to customers in North America, Europe,
Australia and Middle East.
SAINI ALLOYS: ICRA Keeps B+ INR24cr Loan Rating in Not Cooperating
------------------------------------------------------------------
ICRA said the ratings for the INR24.00-crore bank facilities of
Saini Alloys Private Limited continue to remain under 'Issuer Not
Cooperating' category. The ratings are denoted as
"[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund 24.00 [ICRA]B+ (Stable); ISSUER NOT
Based/Cash COOPERATING; Continues to
Credit remain under the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available and
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
Saini Alloys Private Limited is engaged in the manufacturing of
steel pipes and trading of HR coils. The company was promoted by
Mr. Ratan Singh Saini and Mr. Ram Niwas Saini in 1999. The
company's manufacturing facility is located in Sikandrabad (Uttar
Pradesh) with an installed capacity of 36,000 MT per annum
(increased from 10,000 MT per annum) of steel tubes and pipes.
SAKTHI GANESH: Ind-Ra Lowers Long Term Issuer Rating to 'BB+'
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Sakthi Ganesh
Textiles Private Limited's (SGTPL) Long-Term Issuer Rating to 'IND
BB+' from 'IND BBB-'. The Outlook is Negative.
The instrument-wise rating actions are:
-- INR150 mil. Fund-based working capital limit downgraded with
IND BB+/Negative/IND A4+ rating;
-- INR90 mil. Non-fund-based working capital limit downgraded
with IND A4+ rating; and
-- INR92.0 mil. (reduced from INR107.9 mil.) Term loan due on
July 2021 - March 2023 downgraded with IND BB+/Negative
rating.
KEY RATING DRIVERS
The downgrade and Negative Outlook reflect SGTPL's stressed
liquidity position along with sustained deterioration in its credit
metrics and top line.
The company's peak use of the working capital facilities was around
97% for the 12 months ended March 2019 while the cash credit limits
were fully utilized during 4QFY19. Moreover, the net cash
conversion cycle elongated to 169 days in FY18 (FY17: 156 days),
owing to an increase in receivables period to 105 days (93 days).
Its cash flow from operations was INR19.1 million in FY18 (FY17:
negative INR28.3 million) and cash and cash equivalents stood at
INR2.1 million (FY17: INR1.5 million) against debt repayments of
INR22.2 million for FY19.
The scale of operations remained medium and the revenue fell to
INR844.9 million in FY18 (FY17: INR860.2 million; FY16: INR1,027.0
million), on account of a marginal decrease in the quantum of
orders from customers due to changes in fashion trends of woven
fabrics and dyed yarns. However, the company booked revenue of
INR760.0 million during April 2018 to February 2019 and it is
likely to have been in a similar range for FY19.
The gross interest coverage (operating EBITDA/gross interest
expense) reduced to 1.8x in FY18 (FY17: 2.0x; FY16: 2.4x) and net
leverage (total adjusted net debt/operating EBITDA) increased to
3.3x (2.9x; 2.6x). The deterioration in metrics was because of a
fall in margins to 11.2% in FY18 (FY17: 12.9%), owing to a lower
realization price and the negative impact of the goods and services
tax on the fabric industry. In FY18, the ROCE stood at 13% (FY17:
14%). The company earns modest margins in the range of 10%-12% due
to the commoditized nature of raw material (cotton). As per the
9MFY19, the EBITDA margin was 11% and interest coverage was 1.85x.
Ind-Ra expects the EBITDA margin likely to have been at similar
levels by end-FY19.
The ratings continue to factor in SGTPL's promoter's over two
decades of experience in the cotton yarn dyed woven fabric
manufacturing business, leading to established relationships with
customers and suppliers. The ratings also factor in the company's
presence in Tamil Nadu, which is the hub for textile and garment
manufacturers.
RATING SENSITIVITIES
Negative: Continued deterioration in the liquidity profile would be
negative for the ratings.
Positive: An increase in the revenue and the profitability, leading
to an improvement in the credit metrics and liquidity, all on a
sustained basis, could result in a Stable Outlook.
COMPANY PROFILE
Established in 1996, SGTPL manufactures and sells cotton yarn dyed
woven fabric in the domestic market, as well as exports to
Bangladesh, Cambodia, Sri Lanka, and Vietnam.
SANTOSH ENTERPRISES: CRISIL Lowers Rating on INR2.25cr Loan to D
----------------------------------------------------------------
CRISIL has downgraded its rating on the long-term and short term
bank facilities of Santosh Enterprises (SE) to 'CRISIL D/ Issuer
Not Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating', as
there has been continuous overdrawals in the cash credit account
for more than 30 days.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 2 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable' ISSUER NOT
COOPERATING)
Cash Credit 2.25 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable' ISSUER NOT
COOPERATING)
Cash Credit/ 1.5 CRISIL D (ISSUER NOT
Overdraft facility COOPERATING; Downgraded from
'CRISIL B/Stable' ISSUER NOT
COOPERATING)
Proposed Working 1.25 CRISIL D (ISSUER NOT
Capital Facility COOPERATING; Downgraded from
'CRISIL B/Stable' ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SE for obtaining
information through letters and emails dated December 27, 2018,
March 15, 2019 and March 20, 2019 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
'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 SE. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SE is consistent
with 'Scenario 4' outlined in the 'Framework for Assessing
Consistency of Information'.
Based on the last available information, CRISIL has downgraded its
rating on the long-term and short term bank facilities of SE to
'CRISIL D/ Issuer Not Cooperating' from 'CRISIL B/Stable Issuer Not
Cooperating', as there has been continuous overdrawals in the cash
credit account for more than 30 days.
Incorporated in 1990, SE is promoted Mr Santosh Dalvi. The firm is
engaged in the manufacturing of fabricated structures used by the
windmill industry. It has a manufacturing facility in the Ambad
industrial area of Nasik.
SARAVANA BUILDWELL: ICRA Keeps 'D' INR10cr Loan Rating in Not Coop.
-------------------------------------------------------------------
ICRA said the rating for the INR10.00-crore bank facilities of
Saravana Buildwell Private Limited (SBPL) continues to remain in
the 'Issuer Not Cooperating' category. The ratings are denoted as
"[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 10.00 [ICRA]D; ISSUER NOT COOPERATING;
Term Loan Rating continues to remain in
the 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.
Incorporated in 2007, Saravana Buildwell Private Limited (SBPL) is
a private limited concern engaged in real estate development in
Bangalore, Karnataka. The promoter Mr. K Nagaraj has a long
standing experience in the field of real estate development, having
developed more than 10 residential and commercial projects
encompassing 0.2 million square feet of constructed area, since
establishment of his partnership entity M/s. Saravana Constructions
in 1997. Initially, the group had started off as a real estate
company doing small format layouts, independent homes and small
apartment complexes, but now the group has forayed into in to large
housing projects and is in the process of getting into villa
project ventures too.
SARAWAGI AUTOMOBILES: ICRA Maintains B Rating in Not Cooperating
----------------------------------------------------------------
ICRA said the ratings for the INR8.38-crore bank facilities of
Sarawagi Automobiles Private Limited (SAPL) continue to remain
under 'Issuer Not Cooperating' category. The ratings are denoted as
"[ICRA]B(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund 7.50 [ICRA]B (Stable); ISSUER NOT
Based/Cash COOPERATING; Continues to
Credit remain under the 'Issuer Not
Cooperating' category
Long Term- 0.88 [ICRA]B (Stable); ISSUER NOT
Unallocated COOPERATING; Continues to
remain under the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available and
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
SAPL was incorporated in May 2009 and is an authorised dealer of
Tata Motors Limited. SAPL is engaged in the sale of vehicles,
spares and also provides after sales support. Presently, the
company has 3S (sales, service and spares) facilities at Sri
Ganganagar and Hanumangarh districts and sales facilities at
Suratgarh, Raisinghnagar, Anoopgarh, Nohar and Bhadra, in
Rajasthan.
SATYENDRA AGRO: CRISIL Lowers Rating on INR7cr Cash Loan to B-
--------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility of
Satyendra Agro Products (SAP) to 'CRISIL B-/Stable' from 'CRISIL
B/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL B-/Stable (Downgraded
from 'CRISIL B/Stable')
The downgrade reflects CRISIL's belief that the firm's business
risk profile will remain subdued over the medium term. SAP incurred
operating losses in fiscal 2018 on account of sharp fall in toor
dal prices resulting in inventory loss. Furthermore, the scale of
operations is expected to remain subdued due to ban on import of
toor dal. Consequently, the company's financial risk profile is
also expected to remain weak marked by negative networth and weak
debt protection metrics.
The rating continues to reflect the firm's weak financial risk
profile and modest scale of operations amidst intense completion.
These weaknesses are partially offset by the extensive experience
of the promoters in the agriculture industry.
Key Rating Drivers & Detailed Description
Weakness
* Weak financial risk profile: Financial risk profile is weak,
marked by negative networth, highly leveraged capital structure and
weak debt protection metrics.
* Modest scale of operations amidst intense competition: The highly
fragmented pulse processing industry and modest scale of operations
limit the firm's ability to bargain with its suppliers and
customers, which leads to pressure on the operating margin. Revenue
stood at INR34.16 crore in fiscal 2018 and should remain at similar
levels over the medium term, resulting in reduced cash accrual.
Strength
* Extensive experience of the promoters: Benefits from
three-decade-long experience of the promoters in the agro products
industry and strong relationships with the customers and suppliers
will continue to support the business.
Liquidity
Liquidity is adequate: bank limit utilisation was moderate,
averaging 73.29% for the 12 months through September 2018; the firm
has no debt servicing obligation. Current ratio was low at 0.8 time
as on March 31, 2018. Unsecured loans of around INR1.98 crore
extended by the partners as on March 31, 2018, provide a cushion to
liquidity.
Outlook: Stable
CRISIL believes SAP will continue to benefit from the extensive
experience of its promoters. The outlook may be revised to
'Positive' if significant and sustained improvement in revenue and
profitability or improved working capital management strengthen the
capital structure. The outlook may be revised to 'Negative' if
lower-than-expected cash accrual, stretched working capital cycle,
or higher-than-expected, debt-funded capital expenditure weakens
liquidity.
Established in 2009 as a partnership firm, SAP processes toor dal.
Its day-to-day operations are handled by Mr Bijendra Shah, Mr
Pravinkumar Shah, and Mr Viralkumar Shah.
SAVA HEALTHCARE: Ind-Ra Corrects May 2 Rating Release
-----------------------------------------------------
This announcement rectifies the version published on May 2, 2019,
to correctly state the maturity date of the long-term loans and the
size of the issue of the term loan limits and non-fund-based
working capital limits.
India Ratings and Research (Ind-Ra) has assigned Sava Healthcare
Limited (SHL) a Long-Term Issuer Rating of 'IND BB'. The Outlook is
Stable.
The instrument-wise rating actions are:
-- INR111.5 mil. Term loan limits due on July 30, 2022, assigned
with IND BB/Stable rating;
-- INR290.2 mil. Fund-based working capital limits assigned with
IND BB/Stable/IND A4+ rating; and
-- INR30 mil. Non-fund-based working capital limits assigned with
IND A4+ rating.
KEY RATING DRIVERS
The ratings reflect the weak credit metrics of SHL in FY18 owing to
the debt-funded CapEx incurred in the past. In FY18, the company's
net leverage (total adjusted net debt/operating EBITDAR) was 8.61x
and gross interest coverage (operating EBITDA/gross interest
expense) was 1.34x. Ind-Ra expects the credit metrics of SHL to
improve in the medium term on account of timely debt repayment,
likely stable profitability and the absence of debt-funded CapEx
plans.
The ratings also reflect the tight liquidity of SHL, indicated by
an average maximum fund-based working capital limit use of 99% for
the 12 months ended March 2019, which was due to an elongated
working capital cycle, and negative operating cash flow. SHL's
operating cash flow turned negative INR32 million in FY18 from
INR84.79 million in FY17 owing to high working capital
requirements. The working capital cycle was elongated at 259 days
in FY18 (FY17: 213 days) due to high inventory and debtor days.
The ratings, however, are supported by a rise in revenue and
profitability. SHL's revenue rose to INR837.6 million in FY18 from
INR731.43 million in FY17, driven by an increase in orders from the
pharmaceutical and vet segments. The scale of operations is small.
According to provisional financials for FY19, SHL's revenue was
INR980 million. In FY18, EBITDA margin was modest at 8.3% (FY17:
negative 2.71%). The improvement in the margin was on account of a
decline in other operating expenses. In addition, its return on
capital employed was 0% in FY18 (FY17: negative 7%).
The ratings are also supported by the promoters' experience of more
than decades in the pharmaceutical industry.
RATING SENSITIVITIES
Negative: Any decline in the revenue and/or the profitability,
leading to any deterioration in the credit metrics, will be
positive for the rating.
Positive: Consistent improvement in the revenue and stable
profitability, leading to an improvement in the credit metrics,
along with an improvement in the liquidity, will be positive for
the rating.
COMPANY PROFILE
Incorporated in 2004 by Vinod Jadhav, Pune-based SHL, formerly
Anagha Pharma Private Limited, manufactures pharmaceutical,
research and development, and herbal products.
SHREE PRAYOSHA: CRISIL Reaffirms 'B' Rating on INR6cr Cash Loan
---------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B/Stable' rating on the long-term
bank facility of Shree Prayosha Jewellers (SPJ).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B/Stable (Reaffirmed)
The rating continues to reflect the firm's modest scale of
operations, stretched working capital cycle, and below-average
financial risk profile. These weaknesses are partially offset by
the extensive experience of the partners in the gems and jewellery
business.
Analytical Approach
Unsecured loans (outstanding at INR2.3 crore as on March 31, 2019)
extended to SPJ by the partners have been treated as neither debt
nor equity because these loans are likely to remain in the business
over the medium term.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations: The scale of operation is expected to
remain modest due to intense competition. The revenue is estimated
at around INR22 crore in fiscal 2019.
* Working capital cycle: Operations are working capital intensive
and should remain so over the medium term. Gross current assets are
estimated to exceed 450 days as on March 31, 2019, driven by higher
inventory levels.
* Below-average financial risk profile: Financial risk profile is
weak. Networth was low and gearing high at around INR5 crore and 3
times, respectively, as on March 31, 2019. Debt protection metrics
should remain below-average, too, with interest coverage and net
cash accrual to total debt ratios estimated at 1.3 times and 0.03
times, respectively, in fiscal 2019.
Strength
* Extensive experience of the partners: Benefits from the partners'
experience of over five decades and healthy relations with
suppliers should continue to support business risk profile.
Liquidity
Liquidity is moderate. Cash accrual- estimated at INR0.6-0.7 crore
in fiscal 2019 and likely to remain stable through 2021 - is
tightly matched against yearly debt obligation of around the same
amount. Utilisation of fund-based limit of INR6 crore averaged 98%
in the 12 months through January 2019.
Outlook: Stable
CRISIL believes SPJ will continue to benefit from the extensive
experience of its partners. The outlook may be revised to
'Positive' if improvement in working capital management, and
increase in revenue, profitability, and cash accrual strengthen
financial risk profile. The outlook may be revised to 'Negative' if
low accrual, stretch in working capital cycle, or any large
debt-funded capital expenditure weakens the financial risk profile,
especially liquidity.
SPJ, established as a partnership firm in 2013, is in the jewellery
retail business. It runs two showrooms in Rajkot.
SHRI GANESH: CRISIL Hikes Rating on INR4cr Term Loan to B+
----------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Shri Ganesh Agro Products (SGAP; part of the Shri Ganesh group) to
'CRISIL B+/Stable' from 'CRISIL B/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 1.3 CRISIL B+/Stable (Upgraded
Bank Loan Facility from 'CRISIL B/Stable')
Term Loan 4 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Warehouse Financing 2.4 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Working Capital 1.3 CRISIL B+/Stable (Upgraded
Facility from 'CRISIL B/Stable')
The upgrade reflects the Shri Ganesh group's sustainable scale of
operations and profitability. Revenue remained stable at INR63
crore in fiscal 2019, despite lower availability of crop and
reduced demand from overseas. Operating margin is estimated at 5.5%
for fiscal 2019. Stable scale and profitability led to moderate
cash accrual and debt protection metrics.
The rating continues to reflect the group's modest scale of
operations in the intensely competitive rice industry,
susceptibility to volatility in raw material prices, and average
financial risk profile. These weaknesses are partially offset by
the experience of the partners and their funding support.
Analytical Approach
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of Shri Ganesh Agro Industries (SGAI) and
SGAP, together referred to herein as the Shri Ganesh group. Both
the entities are in the same business and under a common
management.
Unsecured loans of INR11.63 crore from the partners and their
family members as on March 31, 2018 have been treated as debt.
Key Rating Drivers & Detailed Description
Weakness:
* Modest scale of operations amid intense competition: Small scale,
reflected in revenue of INR63.54 crore in fiscal 2018 and estimated
at INR63.0 crore for fiscal 2019, amid intense competition limits
the pricing power with suppliers and customers, thereby
constraining profitability.
* Exposure to volatility in raw material prices: Raw material
(paddy) prices have been volatile in the past few years and are
regulated by government policies. Thus, operating margin is
susceptible to fluctuations in input prices.
* Average financial risk profile: Networth was small at INR5.17
crore as on March 31, 2018, while gearing was high at 4.74 times,
however networth is estimated at INR4.94 crore , while gearing is
estimated at 3.42 times for fiscal 2019.
Strengths:
* Experience of the partners and their funding support: The
partners' experience of five decades and healthy relationships with
customers and suppliers should continue to support the business.
The partners are also likely to continue extending unsecured loans
(Rs 11.63 crore as on March 31, 2018) to aid liquidity.
Liquidity
Liquidity is likely to remain adequate over the medium term. Cash
accrual, estimated at INR1.00 crore in fiscal 2019 and expected at
INR1.15 crore for fiscal 2020, should comfortably cover annual debt
obligation of INR0.60 crore. Bank limit utilisation averaged 88%
for the 12 months ended February 2019. Current ratio was healthy at
1.70 times as on March 31, 2018, and is estimated to have improved
to 1.34 times as on March 31, 2019.
Outlook: Stable
CRISIL believes the Shri Ganesh group will continue to benefit from
the experience of the partners. The outlook may be revised to
'Positive' if a substantial increase in revenue and profitability,
or capital infusion, along with prudent working capital management,
strengthens the financial risk profile. The outlook may be revised
to 'Negative' if an aggressive, debt-funded expansion, a
significant decline in revenue and profitability, or sizeable
capital withdrawal weakens the financial risk profile.
SGAI and SGAP were set up in 2010 and 2017, respectively. Both
firms are partnerships between Mr Dinesh Bhutada and Mr Survesh
Bhutada. The Shri Ganesh group mills and processes paddy into rice,
rice bran, and broken rice. The processing facilities at Gondiya
(Maharashtra) have installed capacity of 8 tonne per hour.
SILVER COTTON: ICRA Maintains 'B+' Rating in Not Cooperating
------------------------------------------------------------
ICRA said the rating for the INR5.50-crore bank facilities of
Silver Cotton remains under the Issuer Not Cooperating category.
The rating is denoted as [ICRA]B+ (Stable); ISSUER NOT
COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based- 1.50 [ICRA]B+ (Stable); ISSUER NOT
Term Loan COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Fund-based- 4.00 [ICRA]B+ (Stable); ISSUER NOT
Cash Credit COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA based on the best
available/dated/limited information on the issuer's performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this
rating, as it may not adequately reflect the credit risk profile of
the entity.
Established as a partnership firm in April 2014, Silver Cotton (SC)
is involved in the ginning and pressing of cotton. The operations
of the firm are managed by members of the Gadara family who have an
experience of over eight years in the cotton ginning and pressing
sector. The manufacturing facility of the firm, located at
Jamnagar, Gujarat, is equipped with 24 ginning machines and one
pressing machine with a total processing capacity of ~ 22,400
metric tonnes of raw cotton per annum. The firm commenced
commercial operations from December 2014.
SITARAM MAHARAJ: ICRA Lowers Rating on INR150cr Loans to D
----------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of
Sitaram Maharaj Sakhar Karkhana (Khardi) Ltd. (Sitaram Sugar), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based-
Term Loan 50.00 [ICRA]D; Revised from [ICRA]C
Fund-based-
Working Capital
Facilities 100.00 [ICRA]D; Revised from [ICRA]C
Rationale
The rating revision factors in the delays in debt servicing by
Sitaram Sugar because of its weak financial profile marked by
significant losses in the past. This resulted in its erosion of net
worth and stressed liquidity position, which led to the lender
approaching the National Company Law Tribunal for insolvency
resolution. The revised rating remains constrained by the company's
high working capital intensity of operations owing to its
significant inventory build-up. The rating also remains constrained
by the vulnerability of its profitability to high volatility in
sugar prices, inherent cyclicality in the sugar industry and
agro-climatic risks related to cane production.
The rating, however, notes the extensive experience of the
company's promoters in the sugar industry.
Key rating drivers
Credit strengths
Extensive experience of promoters in the sugar industry: Sitaram
Sugar is a closely-held entity, promoted by the Solapur-based Kale
family of Maharashtra. The key promoter, Mr. Kalyanrao V. Kale, has
an industry experience of nearly 20 years. He has also promoted
Sahakar Shiromani Vasantrao Kale Sahakari Sakhar Karkhana Limited,
located in the company's vicinity.
Credit challenges
Delays in debt servicing: Sitaram Sugar reported delays in the
servicing of its harvesting and transportation loan interest and
its principal repayment obligations due to its stretched liquidity
position. This led to the lender approaching the National Company
Law Tribunal for insolvency resolution.
Weak financial profile led to debt structuring: The company
reported heavy operating losses in FY2017 and FY2018 due to sharp
decline in revenues, high operating costs and sizeable interest
burden, resulting in the erosion of its net worth. The liquidity
position remained stretched given the heavy losses, which impacted
its debt servicing ability, ultimately resulting in corporate debt
structuring in October 2018.
Modest scale of operations: The company's operational history spans
close to nine years excluding SY12017, wherein the operations
remained shut due to cane paucity in the command area. In SY2019,
the company operated for nearly 90 days, crushing 1,74,333 MT of
cane with a recovery of 9.77%, compared to the operational period
of 93 days in SY2018, wherein it crushed 90,714 MT of cane with a
recovery of 10.60%. The operating income (OI) declined by 26% in
FY2018 to INR19.33 crore from INR26.04 crore in FY2017 due to low
sugar volumes sold with softening realisations, especially since
December 2017. The company booked a revenue of INR27.60 crore from
April 2018 to February 2019.
High working capital intensity of operations: The company's working
capital intensity increased in FY2018 to 52% (44% in FY2017), on
account of high sugar inventory levels as on the yea- end. As on
March 31, 2018, the company's inventory increased to 438 days (from
86 days as on March 31, 2017).
Exposure to agro-climatic risks and cyclical trends in the sugar
sector: Cane production remains a function of agro-climatic
conditions, which ultimately impact volumes and realisations of
sugar and its by-product. Lower-than-expected rainfall in the
cooperative's catchment area can result in restricted cane
availability, thus impacting the crushing volumes for the season.
Further, the sugar business remains vulnerable to any unfavourable
changes in Government policies related to sugar trade.
Vulnerability of profitability to volatility in sugar realisations
and cane procurement costs: Typically, the profitability of sugar
entities remains driven by sugar realisations and cane procurement
costs. While the sugar realisations remain market driven, the state
governments fix the minimum support price for cane. Any adverse
movements in the same, impact the contribution margins and hence,
the profitability of the sugar mills.
Liquidity position
The company's liquidity profile remained constrained (especially in
the last two fiscals) given the heavy losses, ultimately leading to
debt restructuring. Post debt restructuring, the company has
obtained a moratorium of 12 months for its long-term debt
obligations, and its repayments will commence from September 2019.
Nevertheless, the repayment obligations remain high at INR8.21
crore each in FY2020, FY2021 and FY2022. The company's ability to
ensure healthy scale-up of operations, along with notable
improvement in profitability, will be crucial for its timely debt
servicing. The average utilisation of the sanctioned working
capital limits during the 12-month period ended December 2018 stood
at ~83%, while the peak utilisation stood at 108%.
Incorporated in 2010, Sitaram Maharaj Sakhar Karkhana (Khardi) Ltd.
is based at Pandharpur in Solapur district (Maharashtra). It has an
installed crushing capacity of 2,500 tonne crushed per day (TCD),
which is integrated with a co-generation unit of 10 MW. The
company's catchment area extends to the villages primarily located
in Pandharpur Taluka.
In FY2018, Sitaram Sugar reported a net loss of INR11.17 crore on
an OI of INR19.33 crore compared to a net loss of INR13.91 crore on
an OI of INR26.04 crore in the previous year.
SRIRAM FASTENERS: CRISIL Reaffirms 'B' Rating on INR2.50cr Loan
---------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B/Stable' rating on the long-term
bank facilities of Sriram Fasteners (SF).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.50 CRISIL B/Stable (Reaffirmed)
Long Term Loan 2.14 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility .86 CRISIL B/Stable (Reaffirmed)
The rating continues to reflect the modest scale of SF's
operations, exposure to intense competition, and a weak financial
risk profile. These weaknesses are partially offset by the
extensive experience of the partners in the steel industry.
Key Rating Drivers & Detailed Description
Weakness:
* Modest scale of operations amid intense competition: The steel
industry in West Bengal is highly fragmented, with numerous
organised and unorganised players catering to regional demand.
Intense competition may continue to constrain scalability, pricing
power, and profitability. Revenue has been modest, estimated at
INR10 crore in fiscal 2019, against INR3.72 crore in fiscal 2018.
* Weak financial risk profile: The financial risk profile is likely
to remain constrained. Networth was modest at INR1.92 crore as on
March 31, 2018, with gearing high at 2.94 times. Debt protection
metrics were also average, with interest coverage and net cash
accrual to total debt ratios of 0.09 times and (0.01) time,
respectively, in fiscal 2019.
Strengths:
* Extensive experience of the partners: Benefits from the partners'
experience of 30 years, their strong understanding of local market
dynamics, and healthy relations with customers and suppliers should
continue to support the business. Thus, SF gets adequate credit
from the suppliers.
Liquidity
Liquidity is likely to remain weak. Cash accrual expected at over
INR0.30 crore per annum over the medium term should be barely
sufficient to meet the yearly maturing debt of INR0.36 crore.
However, the partners may extend timely, need-based unsecured loans
to support the business.
Outlook: Stable
CRISIL believes SF will continue to benefit from the experience of
the partners. The outlook may be revised to 'Positive' if there is
a substantial and sustainable increase in revenue and cash accrual
along with prudent working capital management strengthens the
financial risk profile. Conversely, the outlook may be revised to
'Negative' if lower-than-expected revenue or profitability,
sizeable capital withdrawal, a significant stretch in the working
capital cycle, or any large, debt-funded capital expenditure
weakens the financial risk profile and liquidity.
SF was set up in January 2016 as partnership between Mr Sri Pramod
Kumar Todi, Mr Basant Kumar Todi, Mr Aditya Todi, Mr Deepak Gupta,
and Ms Julie Wahlang. The Guwahati (Assam)-based firm manufactures
nut and bolt, barbed wire, torkari, chainlink, and fencing wire,
with total installed capacity of 27,600 MT per annum.
STEEL PRODUCTS: ICRA Maintains 'C-' Rating in Not Cooperating
-------------------------------------------------------------
ICRA said the ratings for the bank facilities of Steel Products
Limited (SPL) continues to remain under 'Issuer Not Cooperating'
category. The ratings are denoted as "[ICRA]C-/[ICRA]A4; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based- 11.50 [ICRA]C-; ISSUER NOT COOPERATING;
Cash Credit Rating continues to remain under
'Issuer Not Cooperating' category
Non-Fund 10.00 [ICRA]C-; ISSUER NOT COOPERATING;
Based-Bank Rating continues to remain under
Guarantee 'Issuer Not Cooperating' category
Non-Fund 1.15 [ICRA]A4; ISSUER NOT
Based-Letter COOPERATING; Rating continues to
of Credit remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
Incorporated in 1917, Steel Products Limited (SPL) is engaged in
the manufacturing of tower parts and steel structural for
transmission towers, telecom towers and substation transmission
systems. The company also undertakes engineering procurement and
construction (EPC) work to lay optic fiber cables over the
transmission towers.
VICTORY TRANSFORMERS: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: Victory Transformers & Switchgears Limited
No. 850/64B, T.H. Road
Near Royal Enfield, Thiruvotriyur
Chennai 600019
Insolvency Commencement Date: May 1, 2019
Court: National Company Law Tribunal, Chennai Bench
Estimated date of closure of
insolvency resolution process: October 28, 2019
(180 days from commencement)
Insolvency professional: Mr. Chinnam Poorna Chandra Rao
Interim Resolution
Professional: Mr. Chinnam Poorna Chandra Rao
Flat No. 101, TVS Mahathi Apts
Opp Sampoorna Super Market
Behind Sr Digi School
Lanco Hills Road, Manikonda
Hyderabad 500089
Rangareddy Dist. Telangana
E-mail: chinnam.poorna@gmail.com
- and -
GVR Corporate Services Pvt. Ltd.
H.No. 8-2-248/1/7/9&10/7 Plot No. 9&10
4th Floor, 4A Uma Chambers
Nagarjuna Hills, Panjagutta
Hyderabad 500082
E-mail: cirp.vtsl@gmail.com
Last date for
submission of claims: May 15, 2019
YADU SUGAR: Ind-Ra Affirms 'D' LT Issuer Rating in Not Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Yadu Sugar
Limited's Long-Term Issuer Rating at 'IND D (ISSUER NOT
COOPERATING)'. The issuer did not participate in the rating
exercise despite continuous requests and follow-ups by the agency.
Thus, the rating is based on the best available information.
Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating action is:
-- INR1.020 bil. Fund-based working capital limits (long-
term/short-term) affirmed with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; Based on
the best available information
KEY RATING DRIVERS
The affirmation reflects a delay in the servicing of interest and
installments during the 12 months ended March 31, 2019. The
interest charged in cash credit account was deposited with a delay
during the period.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months would be positive for the ratings.
COMPANY PROFILE
Incorporated in 1998, Yadu Sugar has a 500 tons of cane per day
sugar mill and a 32MW co-generation plant in Sujanpur, Uttar
Pradesh.
===============
M O N G O L I A
===============
BANK OF MONGOLIA: S&P Puts 'B' Rating to US$ Sr. Unsec. Notes Issue
-------------------------------------------------------------------
S&P Global Ratings assigned a 'B' long-term issue rating to a
proposed issue of U.S. dollar-denominated senior unsecured notes
under the Trade and Development Bank of Mongolia LLC's (TDBM;
B/Stable/B) US$1 billion medium-term note (MTN) program, which has
increased to US$1 billion from the previous US$500 million. The
rating on the notes is subject to our review of the final issuance
documentation.
The notes will be direct, general, unconditional, unsubordinated,
and unsecured obligations of TDBM. They will at all times rank
equally and without any preference among themselves. The bank
intends to use the proceeds to refinance its existing debt and for
general corporate purposes.
=====================
N E W Z E A L A N D
=====================
VINOPTIMA ESTATE: Vineyard Unsold Eight Months after Receivership
-----------------------------------------------------------------
The Gisborne Herald reports that Vinoptima Vineyard and Winery
remains for sale eight months after it went into receivership.
The Gisborne Herald, citing the New Zealand Herald, relates that
BDO receiver Andrew McKay said offers on the property were not
acceptable at the time tenders closed.
Established for the production of the niche gewurtztraminer grape
variety, the Ngakaroa Road Vinoptima Estate is in two blocks--5.35
hectares planted in 10,775 vines in 2007 and 5.1 hectares planted
in 10,455 vines in 2000, the report discloses. The 533 sq m winery
was built in 2003 and has a crushing plant, sterile air-conditioned
bottling room, walk-in chiller, storage and a self-contained
manager/winemaker's residence.
According to the report, Bayleys agent Simon Bousefield said there
was some "good activity" with tenders before the December 4 tender
date.
"But the receivers have decided not to sell the property and have
withdrawn it from the market."
A second report into the failed business was released last week,
the Gisborne Herald notes.
On August 20 last year, a secured unnamed creditor called in the
receivers.
The Gisborne Herald says the first receivers report showed
Vinoptima had debts of around NZ$15 million, far short of assets,
listed with a cost value of NZ$9.2 million, potentially meaning it
would be unable to repay creditors and shareholders.
The business, founded by Nick Nobilo, the middle son of pioneering
New Zealand winemaker Nikola Nobilo, owes NZ$11.5 million to
shareholders and those with cross guarantees and a further NZ$3.1
million to unsecured creditors, the Gisborne Herald relays.
"The wine produced has received critical acclaim but sales have
been slow, particularly as the previous distributor into China
stopped operations despite having entered into a multi- year
distribution agreement with Vinoptima," the report, as cited by the
Gisborne Herald, said. The result of poor sales affected trading
operations and incurred trading losses.
=================
S I N G A P O R E
=================
HYFLUX LTD: Faces US$57.7MM Claim by BNP Paribas for Bond
---------------------------------------------------------
Marissa Lee at The Business Times reports that Hyflux Ltd has
received a notice from BNP Paribas demanding payment of US$57.7
million, it said on May 6.
The French bank is claiming the sum in respect of a performance
bond that it issued to Hyflux associate company Tahlyat Myah Magtaa
(TMM) in Algeria, the report says.
Hyflux owns a 47 per cent stake in TMM, which is the project
company for the Magtaa desalination plant in Algeria.
According to the report, Hyflux had said on April 23 that it was
aware of a claim of approximately US$56.5 million made by TMM in
respect of the performance bond issued by BNP Paribas El Djazair,
but disputed TMM's right to make such a claim.
BNP Paribas has since declared a sum of US$57.7 million to be due
and payable. This sum includes the claim amount and handling
commission, fees and charges, including those due and payable from
the period of April 1, 2018 to May 8, 2019.
BT relates that Hyflux said that it is taking appropriate legal
steps, and has filed an injunction application against the issuer
of the performance bond that guarantees payment of claims by TMM.
The demand from BNP Paribas is expected to have a material impact
on the financial performance of the group, Hyflux said, BT relays.
The insolvent water treatment firm has been under a
court-sanctioned debt moratorium for close to a year now.
On May 7, a Singapore High Court heard an application from Mizuho,
KfW, Bangkok Bank, BNP Paribas, CTBC Bank and the Korea Development
Bank, which wish to be carved out of the moratorium. The court was
to decide on May 7 whether they can be carved out.
If a carve-out is approved, these banks plan to file an application
to appoint judicial managers over Hyflux and Hydrochem to replace
the present Hyflux management, BT notes.
About Hyflux
Singapore-based Hyflux Ltd -- https://www.hyflux.com/ -- provides
various solutions in water and energy areas worldwide. The company
operates through two segments, Municipal and Industrial. The
Municipal segment supplies a range of infrastructure solutions,
including water, power, and waste-to-energy to municipalities and
governments. The Industrial segment supplies infrastructure
solutions for water to industrial customers. It employs 2,300
people worldwide and has business operations across Asia, Middle
East and Africa.
As reported in the Troubled Company Reporter-Asia Pacific on May
24, 2018, Hyflux Ltd. said that the Company and five of its
subsidiaries, namely Hydrochem (S) Pte Ltd, Hyflux Engineering Pte
Ltd, Hyflux Membrane Manufacturing (S) Pte. Ltd., Hyflux Innovation
Centre Pte. Ltd. and Tuaspring Pte. Ltd. have applied to the High
Court of the Republic of Singapore pursuant to Section 211B(1) of
the Singapore Companies Act to commence a court supervised process
to reorganize their liabilities and businesses.
The Company said it is taking this step in order to protect the
value of its businesses while it reorganises its liabilities.
The Company has engaged WongPartnership LLP as legal advisors and
Ernst & Young Solutions LLP as financial advisors in this process.
INTERPLEX HOLDINGS: Fitch Withdraws 'BB-' LT IDR, Outlook Stable
----------------------------------------------------------------
Fitch Ratings has withdrawn the ratings on Interplex Holdings Pte.
Ltd. (Interplex).
Fitch currently rates Interplex as follows:
-- Long-Term Foreign-Currency and Local-Currency Issuer Default
Rating (IDRs) at 'BB-'; Outlook Stable
KEY RATING DRIVERS
Fitch is withdrawing the ratings as Interplex has chosen to stop
participating in the rating process given that it has completed its
contemplated refinancing transaction via a syndication loan.
Therefore, Fitch will no longer have sufficient information to
maintain the ratings. Accordingly, Fitch will no longer provide
ratings or analytical coverage for Interplex.
KEY ASSUMPTIONS
Not relevant as the ratings have been withdrawn.
RATING SENSITIVITIES
Not relevant as the ratings have been withdrawn.
*********
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.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2019. 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
without prior written permission of the publishers.
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-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***