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T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, June 24, 2019, Vol. 22, No. 125
Headlines
A U S T R A L I A
CANNY BUILDERS: Second Creditors' Meeting Set for July 1
EMPIRE HOMEWARES: To Shut Shop After Landlord's 20% Rent Hike
PLASTIC GLASSES: Second Creditors' Meeting Set for June 27
RYAN & WILLIAM: First Creditors' Meeting Set for July 1
STERLING FIRST: ASIC Starts Internal Probe Over Collapse
SWIM LOOPS: Had 'Poor Budgeting Control', Owes AUD15.2 Million
VIEWTOP HOLDINGS: Second Creditors' Meeting Set for June 28
WPG RESOURCES: Second Creditors' Meeting Set for June 27
YISHENG GROUP: First Creditors' Meeting Set for July 1
C H I N A
BAOSHANG BANK: China Banks Face Liquidity Squeeze Amid Takeover
CITIC GUOAN: Bank of Beijing to Cover $360 Million Debt
LANDSEA GREEN: Fitch Rates $200MM Sr. Notes Final 'B'
SOUTHERN ENERGY: Moody's Assigns B2 CFR, Outlook Stable
I N D I A
2GETHERMENTS INFRA: CRISIL Maintains B Rating in Not Cooperating
ADITYA STEEL: CRISIL Downgrades Rating on INR17cr Loan to D
AISHWARYA INFRA: CRISIL Reaffirms B Rating on INR10cr Loan
AMBER SPINTEX: Ind-Ra Assigns BB+ LT Issuer Rating, Outlook Stable
CHAMPALAL MOTILAL: Insolvency Resolution Process Case Summary
H.M. INDUSTRIAL: Insolvency Resolution Process Case Summary
JAGANNATH TRADERS: CRISIL Cuts INR10cr Loan Rating to D, Not Coop.
JAIN IRRIGATION: S&P Downgrades ICR to 'B-', Placed on Watch Neg.
JET AIRWAYS: NCLT Admits Creditors' Insolvency Petition
JET AIRWAYS: SBI Says Etihad Open Offer Waiver Demand Not Feasible
KAJUWALLA: CRISIL Cuts INR10cr Loan Rating to D, Not Cooperating
KALRA OVEREAS: Insolvency Resolution Process Case Summary
LOK HOUSING: Insolvency Resolution Process Case Summary
PATNA BAKHTIYARPUR: Ind-Ra Migrates D LT Rating to Non-Cooperating
PURNO-GOURI COLD: CRISIL Migrates B Rating From Not Cooperating
R.S. FOODS: CRISIL Maintains B Rating in Not Cooperating
RELCON FOUNDATIONS: CRISIL Reaffirms B+ Rating on INR4.65cr Loan
S. M. SHANKARRAO: CRISIL Reaffirms C Rating on INR300cr Loan
SHARADA FLOUR: CRISIL Maintains B Rating in Not Cooperating
SHRI VISHNU: CRISIL Maintains D Rating in Not Cooperating
SIDDHI VINAYAK: CRISIL Maintains B+ Rating in Not Cooperating
SILICON INSTITUTE: CRISIL Lowers Rating on INR13.2cr Loan to B+
SOUTHERN GOLD: Ind-Ra Cuts LT Issuer Rating to 'D', Not Cooperating
SRI VYJAYANTHI: CRISIL Maintains D Rating in Not Cooperating
SRIRAMAGIRI SPINNING: Insolvency Resolution Process Case Summary
SUNBEAM DEALERS: CRISIL Maintains B+ Rating in Not Cooperating
SUPREME SALES: CRISIL Cuts INR9.6cr Loan Rating to B+, Not Coop.
SWASTICK TUBES: CRISIL Lowers Rating on INR8.5cr Loan to B+
THARUN TEXSPIN: CRISIL Lowers Rating on INR7cr Cash Loan to B+
VEL SHREE: CRISIL Downgrades Rating on INR26cr Loan to B+
VIDHATRI EXPORTS: CRISIL Maintains B Rating in Not Cooperating
WORLD GOLD: CRISIL Cuts INR20cr Loan Rating to B+, Not Coop.
N E W Z E A L A N D
BEALEY HOTEL: 'Iconic' Historic Coach Stop Closes Doors
PLAMAN RESOURCES: Has Total Debt of More Than NZ$33.6MM
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A U S T R A L I A
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CANNY BUILDERS: Second Creditors' Meeting Set for July 1
--------------------------------------------------------
A second meeting of creditors in the proceedings of Canny Builders
Pty. Ltd. and CWD Holdings Pty. Ltd. ATF Canny Services Trust, has
been set for July 1, 2019, at 10:30 a.m. at the offices PKF
Melbourne, at Level 13, 440 Collins Street, in Melbourne.
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 June 28, 2019, at 4:00 p.m.
Glenn Jeffrey Franklin and Jason Glenn Stone of PKF Melbourne were
appointed as administrators of Canny Builders on May 24, 2019.
EMPIRE HOMEWARES: To Shut Shop After Landlord's 20% Rent Hike
-------------------------------------------------------------
Josh Zimmerman at The West Australian reports that Beaufort Street
stalwart Empire Homewares will close after being asked to shell out
20 per cent more rent, despite the well-publicised struggles of the
once-bustling strip.
The West Australian relates that phones at the Highgate store were
running hot on June 20 as dismayed customers rang to confirm the
family-run institution's shock social media declaration that it
would shut its doors in November.
According to the report, owner Elissa Coleman said after 12 mostly
successful years, her hand was forced by a landlord out of touch
with the grim conditions facing Beaufort Street traders.
"We went to the landlords prepared to stay and I actually thought
we would be offered a reduced rate because everything is closing on
this street, but instead they put the rent up 20 per cent," the
report quotes Ms. Coleman as saying. "I thought it was a joke. I
couldn't believe it."
The West Australian says Ms. Coleman's parents, Perry and Jill
Coleman, opened the first Empire Homewares on Hay Street in Subiaco
in 1979.
They added the Beaufort Street store, their sixth, just over a
decade ago when the strip was building a reputation for its quirky
bars and cafes and unique retail offerings.
Today, many of the shops and eateries that once gave Mt Lawley its
distinct character are shuttered as owners find themselves at odds
with their landlords while struggling with dwindling foot traffic
and years of steep increases to utilities, according to The West
Australian.
The West Australian relates that the past 12 months have claimed
popular wine bar Clarence's, Five Bar, Harvey Leigh's Public House,
Red Cray, Pancho's Mexican Villa, Peaky Bodega and Cantina 663.
According to The West Australian, shadow small business minister
Libby Mettam last week joined Opposition Leader Liza Harvey and
shadow treasurer Dean Nalder at a meeting with Beaufort Street
business owners to discuss the ailing strip.
She was shocked to hear a landlord would raise rents 20 per cent
given the state of the economy but said the McGowan Government
needed to do more to assist business owners, The West Australian
relates.
"Retail precincts like Beaufort Street are destinations in
themselves and the Government could be doing a lot more to market
them, especially to lucrative tourist markets like China," the
report quotes Ms. Mettam as saying.
The West Australian relates that Ms. Coleman said she was sad to be
shutting up shop "but we couldn't be the only furniture store in
the middle of nowhere with no other shops around".
"The store is still profitable but street traffic has dropped off a
lot and there are hardly any visitors during the day," she said.
PLASTIC GLASSES: Second Creditors' Meeting Set for June 27
----------------------------------------------------------
A second meeting of creditors in the proceedings of Plastic Glasses
Pty Ltd has been set for June 27, 2019, at 11:00 a.m. at the
offices of Vince & Associates, at 51 Robinson Street, in Dandenong,
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 June 26, 2019, at 4:00 p.m.
Peter Robert Vince and Paul William Langdon of Vince & Associates
were appointed as administrators of Plastic Glasses on May 22,
2019.
RYAN & WILLIAM: First Creditors' Meeting Set for July 1
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Ryan &
William Pty Ltd, trading as Tokyo Ramen-Hornsby, will be held on
July 1, 2019, at 11:30 a.m. at the offices of Wins Partners, Suite
1901, at Level 19, 233 Castlereagh St., in Sydney, NSW.
Danny Vrkic of DV Recovery Management was appointed as
administrator of Ryan & William on June 19, 2019.
STERLING FIRST: ASIC Starts Internal Probe Over Collapse
--------------------------------------------------------
The West Australian reports that an internal investigation is under
way at the corporate watchdog over the collapse of investment
company Sterling First, which has sucked up the life savings of 101
retirees and left some facing eviction.
The West Australian says state regulators were aware of red flags
surrounding the lifetime lease scheme in 2016, as was the
Australian Securities and Investments Commission (ASIC) in early
2017, but it did not take action until about a year later.
Directors were prevented from selling a certain product, but they
were able to restructure and sell another, the report relates.
According to The West Australian, assistant treasurer Michael
Sukkar said there was clearly claims that piqued ASIC's interest
and he wanted to know whether the investigation was thorough and
proactive enough.
"Were (they) doing everything they could to make sure that new
potential investors were not being duped into pretty crazy
products," Mr. Sukkar told 6PR on June 21, The West Australian
relays. "It seems curious to me that there was a red flag here . .
. and what efforts were made to really make sure people--when they
saw these individuals, regardless of the product that was being
flogged by them--that they were aware there was something that
might not have been quite right about it from a regulator's
perspective.
"That's what I'm hoping the investigation will determine."
Asked whether the system had let people down, Mr. Sukkar said he
would await the outcome of both investigations, the report relays.
"My instinct, my gut feeling is probably yes, but I really want to
see exactly what happened," The West Australian quotes Mr. Sukkar
as saying. "If there's anything that needs to be rectified to make
sure, to the greatest extent possible, it doesn't happen again, I
can assure you we will do it."
Civil and criminal action may also be taken, The West Australian
says.
Sterling First (Aust) Pty Ltd is a property and funds management
group.
Martin Bruce Jones and Wayne Anthony Rushton of Ferrier Hodgson
were appointed as administrators of Sterling First (Aust) Pty Ltd
and related companies on May 3, 2019.
SWIM LOOPS: Had 'Poor Budgeting Control', Owes AUD15.2 Million
--------------------------------------------------------------
Emma Koehn at The Sydney Morning Herald reports that a failed arm
of the Jump swim school chain may have been trading while insolvent
for close to three years, according to an administrators report.
In a report to creditors released last week and seen by The Age and
Sydney Morning Herald, it was estimated that Swim Loops Pty Ltd
owed unsecured creditors AUD15.2 million. Of that, some AUD13.3
million was owed to six companies also related to Jump.
Glenn O'Kearney of GT Advisory was appointed as administrator to
the business on May 21, sparking concerns from Jump Swim
franchisees that the administration may affect funds they were
chasing for swim school franchises they had purchased but had not
been built, Sydney Morning Herald says.
Jump Loops Pty Ltd, the company which holds newly-made franchise
agreements, is owed AUD10 million. According to Sydney Morning
Herald, the administrators' report said between March 2016 and May
2019, it appears Jump Loops had "funded a significant proportion of
[Swim Loops] loss-making operations".
It appeared the company's financial position "can be largely
attributed to a lack of working capital and poor budgeting control
in relation to both revenue and expenses", the report said.
Kuljeet Mathur is a Jump! franchisee who said he's looking forward
to seeing the watchdog launch action against the swim school
franchise, Sydney Morning Herald reports.
From the 2013 financial year onwards, Swim Loops had accumulated
losses of more than AUD10 million, Sydney Morning Herald
discloses.
According to Sydney Morning Herald, Mr. O'Kearney's report said
while pinpointing insolvency would require further investigation,
Swim Loops could have become insolvent as early as June 30, 2016.
Ian Campbell is the sole director of Swim Loops. The
administrator's report said it is possible the director would be
liable for an insolvent trading claim but notes his financial
position may affect any further investigations into whether this is
the case, Sydney Morning Herald relays.
No charges have been laid against Mr. Campbell, and the
administrator's report noted that it would ultimately be for
liquidators to decided whether to pursue any such allegation in
court if they felt it was warranted, Sydney Morning Herald says.
Sydney Morning Herald relates that a Jump Swim spokesman said the
company had been audited every year and received a "statement of
solvency" which would provide a defence for directors.
Sydney Morning Herald says the administrator has only formed a
preliminary view on potential insolvent trading and has clearly
disclosed this would require further investigation.
"The administrator has only formed a preliminary view on potential
insolvent trading and has clearly disclosed this would require
further investigation," Sydney Morning Herald quotes a Jump Swim
spokesperson as saying.
Sydney Morning Herald relates that the spokesman said the company
had approximately AUD2 million in debts to third-party creditors
outside of those owed to related Jump entities.
The Jump spokesman said the company would also be defending recent
action brought against it last week by the Australian Competition
and Consumer Commission alleging it misled franchisees in its
advertising, Sydney Morning Herald relays.
Sydney Morning Herald adds that the administrator believes the
director has around AUD4,250 in personal assets that could be
available to the administration.
Mr O'Kearney told the Sydney Morning Herald and The Age new
information about the company and its affairs continued to come to
light ahead of a creditors meeting scheduled for June 24.
"The second creditors meeting has been convened - I can't say at
this stage whether it is likely to be adjourned. Any new material
information received after my report to creditors was issued will
need to be considered before making a determination with creditors
on the way forward at the meeting."
A deed of company arrangement is on the table for creditors to vote
on in the coming week, Sydney Morning Herald says. It would involve
another company related to Jump Swim, Blue Paddle Pty Ltd,
acquiring the 43 franchise agreements currently held by Swim
Loops.
Sydney Morning Herald adds that the Jump spokesman said it hoped
this proposal would mean "that creditors can obtain a result
leaving the company to focus on swim school operations".
Potential buyers are also being sought for the business.
"In addition to considering the DOCA proposal that has been
submitted, we are dealing with various parties who have expressed
interest in purchasing the business. We haven't yet received any
formal offers," Sydney Morning Herald quotes Mr. O'Kearney as
saying.
Jump! Swim Schools operates more than 60 swimming school franchises
around Australia and has operations in New Zealand, Brazil and
Singapore.
Glenn Thomas O'Kearney of GT Advisory & Consulting was appointed as
administrator of Swim Loops on May 20, 2019.
VIEWTOP HOLDINGS: Second Creditors' Meeting Set for June 28
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Viewtop
Holdings Pty Ltd, trading as Mills Industrial Services and Mills
Sign & Painting Service, has been set for June 28, 2019, at 10:30
a.m. at Palace Meeting Room, Ground Floor, 108 St Georges Terrace,
in Perth, WA.
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 June 27, 2019, at 5:00 p.m.
Jimmy Trpcevski and David Hurt of WA Insolvency Solutions were
appointed as administrators of Viewtop Holdings on May 23, 2019.
WPG RESOURCES: Second Creditors' Meeting Set for June 27
--------------------------------------------------------
A second meeting of creditors in the proceedings of WPG Resources
Limited has been set for June 27, 2019, at 1:00 p.m. at Stamford
Plaza, 150 North Terrace, in Adelaide, SA.
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 June 25, 2019, at 3:00 p.m.
Brett Lord, Adam Nikitins and Samuel Freeman of EY were appointed
as administrators of WPG Resources on July 30, 2019.
YISHENG GROUP: First Creditors' Meeting Set for July 1
------------------------------------------------------
A first meeting of the creditors in the proceedings of Yisheng
Group Pty Ltd, trading as Lee's Music Restaurant, will be held on
July 1, 2019, at 11:00 a.m. at the offices of the offices of Wins
Partners, Suite 1901, at Level 19, 233 Castlereagh St., in Sydney,
NSW.
Danny Vrkic of DV Recovery Management was appointed as
administrator of Yisheng Group on June 19, 2019.
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C H I N A
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BAOSHANG BANK: China Banks Face Liquidity Squeeze Amid Takeover
---------------------------------------------------------------
Don Weinland at The Financial Times reports that banks in China are
facing a pinch on liquidity following the government takeover of a
commercial bank that is resetting the rules for trading in the
country's interbank market.
According to the FT, many of China's more than 4,000 banks face
difficulty raising deposits in smaller cities and rural areas,
making them more reliant on wholesale borrowing from the interbank
market, where banks lend to one another.
But the government takeover of Baoshang Bank in May has disrupted
the willingness of larger banks to lend to smaller ones, leaving
some strained for liquidity, the FT says.
The FT notes that the state intervention at Baoshang guaranteed the
bank's negotiable certificates of deposit up to just CNY50 million
($7.3 million), breaking with an implied government guarantee on
all lending and leaving other banks with higher exposures to
Baoshang to negotiate a resolution.
For interbank lenders, including some of China's largest financial
institutions, the treatment of Baoshang represents a sharp shift in
the rules of the market, the report states.
"It's not just concern on credit risk, it's also about the
resolution mechanism [for defaults on interbank borrowings]," the
FT quotes Katherine Lei, co-head of Asia ex-Japan banks research at
JPMorgan, as saying. "What is the mechanism and how long does it
take?"
According to the FT, pressure on funding for small banks comes at a
difficult moment for China's banking system. While most analysts
believe the country's largest banks are well capitalised, some
mid-tier banks and many smaller institutions face rapidly rising
bad debt as China's economy slows down.
"The large banks have been very reluctant to lend to small banks so
the People's Bank of China has had to lend directly to them," the
report quotes Ms. Lei as sayin.
Incidents such as the takeover of Baoshang Bank have led to
concerns that there are hidden risks that have only just started to
manifest, and that those could spread to places such as the
interbank market where NCDs totalled CNY9.8 trillion last year,
according to the FT.
The FT relates that the negotiable certificate of deposit market
suffered a swift tightening in the days following the Baoshang
takeover, but the central bank has moved to support lending in the
market as the end of the first half of the year approaches, a
period known in China for cash crunches.
Two weeks ago the central bank stepped in to give explicit backing
to a negotiable certificate of deposit from Bank of Jinzhou, which
has yet to issue its financial statement for 2018 and recently
announced that its auditor, EY, had resigned, the FT recalls.
"After the takeover, the demand for regional banks' interbank NCDs
declined and the pricing tightened to reflect heightened
uncertainties as to whether and to what extent the government would
apply similar resolution strategies to other distressed banks,"
Moody's analyst Yulia Wan wrote in a report last week, the FT
relays.
The heightened risk around small banks will put under pressure
CNY4.8 trillion of the CNY70 trillion that China's city and rural
banks borrow from the wholesale market, Richard Xu, financials
analyst at Morgan Stanley, said in a report last week.
Banks based in regions where gross domestic product growth has been
hit hardest by the economic slowdown would face the biggest
difficulty borrowing in the interbank market, he said, adds the
FT.
About Baoshang Bank
Baoshang Bank Co., Ltd. provides various commercial banking
products services to individuals and corporate customers in China.
As reported in the Troubled Company Reporter-Asia Pacific on May
27, 2019, Caixin Global said China's financial regulators took
control of a small private bank as part of authorities' efforts to
break up fallen tycoon Xiao Jianhua's business empire and contain
financial risks. According to Caixin, the People's Bank of China
(PBOC) and China Banking and Insurance Regulatory Commission
(CBIRC) announced on May 24 the takeover of Baoshang Bank Co. for a
year. The rare takeover came two years after Xiao, the billionaire
founder of conglomerate Tomorrow Holding Group, went missing from a
luxury Hong Kong hotel. He is reportedly to have been placed under
graft investigation by Chinese authorities. The regulators said the
takeover reflects the "severe credit risk" the bank poses and is
intended to protect the interests of the bank's depositors and
other clients.
CITIC GUOAN: Bank of Beijing to Cover $360 Million Debt
-------------------------------------------------------
Cao Wenjiao and Denise Jia at Caixin Global report that Chinese
state-linked conglomerate Citic Guoan Group's guarantor will pick
up the tab for CNY2.5 billion ($360 million) of the company's
debt.
Caixin says Bank of Beijing will fulfill its guarantee
responsibilities for all of the principal and interest under a
CNY2.5 billion debt guarantee agreement, the bank said on June 21.
Troubled Citic Guoan missed a first-quarter interest payment of
CNY39.45 million on the debt in March, and Bank of Beijing Co. made
the payment instead, the report says.
Caixin relates that Bank of Beijing said the action doesn't mean a
final loss for the bank. Caixin says the bank had taken a number of
asset preservation measures to ensure that the book value of the
assets can cover the risk, and the bank will try to safeguard its
rights and interests by recovering funds from the debtor, the bank
said in a statement. The move helps to lock in risk exposure and
carry out recovery work to the debtor, the bank said.
But whether the guarantor can recover its loss is questionable as
Citic Guoan is deeply mired in debt disputes and asset seizures,
Caixin notes. The company has been in disputes with several other
financial institutions over failures to repay loan contracts. The
institutions include Beijing Zhongguancun Bank Co. Ltd., Huaxin
Fortune International Trust Co. Ltd. and China Guangfa Bank Co.
Ltd. The company also defaulted on a CNY3 billion bond after
failing to pay a bond coupon due April 27, the Shanghai Clearing
House said, Caixin relays.
Amid rising concerns from the market and creditors, Citic Guoan has
asked its former parent Citic Group for help, Caixin has learned.
Citic Group reported Citic Guoan's debt situation to the Ministry
of Finance before the Lunar New Year holiday and has created a team
to help negotiate a restructuring plan. Details of the plan,
however, have not been disclosed, Caixin says.
A five-year, CNY2.5 billion debt investment plan of Citic Guoan for
which Bank of Beijing is guarantor originally was to come due in
2020, carrying an annual interest rate of 5.6%, Caixin discloses.
The borrowings are being used to finance the renovations of some
old buildings in the capital.
Under the accelerated expiration of the debt plan, if Citic Guoan
fails to repay the bank in six months, then the entire debt
investment plan will mature early on Sept. 3, with Bank of Beijing
on the hook for all unpaid principal and interest, according to
Caixin. On May 27, the beneficiaries of the debt plan approved the
early expiration of the plan, Bank of Beijing said in its June 21
statement.
Because of Citic Guoan's failure to repay the bank on June 20, Bank
of Beijing decided to fulfill the guarantee responsibility for all
principal and interest in accordance with the terms of the
guarantee agreement, the bank, as cited by Caixin, said.
Citic Guoan's net profit in the third quarter of 2018 fell 89% from
a year earlier to CNY56.04 million. At the same time, its
liabilities-to-assets ratio hit 85%, with the company holding total
outstanding debt of CNY178.3 billion, Caixin discloses the
company's latest financial results.
CITIC Guoan Group Co., Ltd. engages in the finance, information
network, tourism, resource development, wine, real estate, culture,
and health care businesses.
LANDSEA GREEN: Fitch Rates $200MM Sr. Notes Final 'B'
-----------------------------------------------------
Fitch Ratings has assigned China-based homebuilder Landsea Green
Group Co., Ltd.'s (B/Positive) USD200 million 10.5% senior notes
due 2022 a final 'B' rating and a Recovery Rating of 'RR4'. The
notes are rated at the same level as Landsea's senior unsecured
rating because they constitute its direct and senior unsecured
obligations.
The assignment of the final rating follows the receipt of documents
conforming to information already received and is in line with the
expected rating assigned on June 17, 2019.
Landsea's ratings are supported by its improved financial position,
with leverage reduced to 17% by end-2018 (end-2017: 25%, end-2016:
42%, after giving 50% equity credit for the CNY1.6 billion in
shareholders' loans). Fitch expects Landsea's leverage to remain
healthy at below 30% as its property sales are mainly in Tier 2
cities in the Yangtze River Delta region and a few projects it owns
in major US cities have started to generate sales.
Its ratings are also driven by rising EBITDAR from its
non-development property (DP) business. The recently proposed
disposal of its rental-apartment subleasing, property-management,
and design-service businesses does not immediately affect Landsea's
ratings as Fitch expects the company's non-DP EBITDAR/(net
interest+rental expenses) ratio to continue to improve in the next
12-18 months
KEY RATING DRIVERS
Leverage to Stay Healthy: Fitch expects Landsea's leverage,
measured by net debt to adjusted inventory that proportionately
consolidates joint ventures and associates, to stay below 30% in
2019-2020. The operating cash flows from the project-management
business should rise moderately as the company continues to adopt
an asset-light strategy of holding minority equity interests in its
projects, which should support the company's leverage to stay low
in the next 18-24 months.
Small, Diversified Operation: Fitch believes the company's quality
land bank and diversified operation will support contracted sales
from equity-stake projects of CNY23.6 billion, which it achieved in
2018. Landsea's low attributable exposure to its development
projects, equivalent to about CNY8.1 billion of contracted sales in
2018, does not impede its ability to grow its project-management
services. Its attributable land bank was 1.46 million square metres
at end-December 2018, smaller than that of 'B' category peers, but
still able to support the company's development for around four to
five years.
The company targets core Tier 2 cities in China, such as Nanjing,
Hangzhou, Wuxi, Chengdu, Wuhan and Chongqing, and around 55% of its
land bank is in the Yangtze River Delta. Landsea's 18 US projects
are in coastal areas and represent 10% of its land bank.
Stabilising Margin: Fitch expects Landsea's EBITDA margin,
excluding capitalised interest from cost of sales, to stay healthy
at 20%-21% in 2019-2020, driven by the delivery of profitable
projects sold in the previous two to three years in China, a
sustained improvement in the US business and contribution from the
higher-margin project-service business. The margin improved to 24%
in 2018, from 21% in 2017 and 13% in 2016 (2015: 37%), following
the delivery of higher-profitability projects in China and
increasing profit from its US property businesses.
Ratings Unaffected by Non-DP Disposals: Landsea announced on May
10, 2019 the proposed disposals of the rental-apartment subleasing,
property-management service, and architectural and landscape-design
businesses to Landsea Group, the controlling shareholder of
Landsea. These business units recorded losses before tax of CNY182
million in 2018, with losses from rental apartments reaching CNY194
million from revenue of CNY125 million as pre-operating expenses
were not sufficiently offset by the slow ramp-up of revenue.
Fitch expects the rental-apartment business to continue to post
operating losses in 2019 and 2020, which will be a drag on non-DP
EBITDA. Landsea's non-DP EBITDA will continue to be driven by its
project-management services, and Fitch expects Landsea's non-DP
EBITDAR/net interest+rent coverage to reach 1.5x in 2019-2020
(2018: 1.4x, 2017: 1.3x).
Slower Contracted Sales: Fitch has revised its expectation for
growth in Landsea's total contracted sales to 20% a year in 2019
and 2020, from 30%-50% previously, as Fitch forecasts a decline in
industry sales in 2019. Landsea's total contracted sales reached
CNY38 billion in 2018. The continued increase in contracted sales
will support growth of 20%-25% in its project-management service
income in the next two years from CNY1 billion in 2018.
DERIVATION SUMMARY
Landsea's leverage is lower than 'B' rated peers, such as Hong Yang
Group Company Limited (B/Positive), Xinyuan Real Estate Co., Ltd.
(B/Negative) and Yida China Holdings Limited (B-/Stable), which
generally have leverage of 40%-50%. Contracted sales from
equity-held projects are similar to those of peers at about CNY20
billion a year.
The adoption of an asset-light strategy and the monetising of its
experience in green-technology homes differentiate Landsea from
traditional homebuilders and may support its deleveraging. Its
quality land bank in China and diversification into the US will
help the company sustain its contracted sales scale in 2019-2020.
Non-development EBITDA from the project-management service is about
1x its cash interest, exceeding that of all 'B' rated peers.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Contracted sales value for equity-held projects at CNY25
billion-28 billion a year in 2019-2020
- EBITDA margin, excluding capitalised interest from cost of
sales, at 20%-21% in 2019-2020
- Non-property development revenue, including project-management
services, rental-apartment subleasing and investment properties, of
CNY1.6 billion-2.4 billion per year in 2019-2020
- About 55% of contracted sales to be spent on land replenishment
to maintain a land bank life of about three to four years
RATING SENSITIVITIES
Developments that May, Individually or Collectively, Lead to
Positive Rating Action
- Net debt/adjusted inventory that proportionately consolidates
joint ventures and associates sustained below 50%. The net debt
includes loans from Landsea's ultimate shareholder to which Fitch
has assigned 50% equity credit, in accordance with Fitch's
Corporate Hybrids Treatment and Notching Criteria
- EBITDA margin, excluding capitalised interest from cost of
sales, sustained above 20%
- Non-development EBITDAR/(net interest + rental expenses)
sustained above 1.5x. Net interest includes cash interest from
amounts due from and due to joint ventures and associates
Developments that May, Individually or Collectively, Lead to
Negative Rating Action
- Net debt/adjusted inventory that proportionately consolidates
joint ventures and associates above 60% for a sustained period
LIQUIDITY
Adequate Liquidity: Landsea had CNY5.9 billion in available cash on
hand at end-December 2018, which exceeded its short-term debt of
CNY0.7 billion. Landsea has generated positive free cash flow in
the past two years and Fitch expects the trend to continue in the
next two years, supported by healthy sales and its higher-margin
project-management business.
SOUTHERN ENERGY: Moody's Assigns B2 CFR, Outlook Stable
-------------------------------------------------------
Moody's Investors Service has assigned a first-time B2 corporate
family rating to Southern Energy Holdings Group Limited.
At the same time, Moody's has assigned a B2 senior unsecured rating
to Southern Energy's proposed USD notes.
The outlook is stable.
The proceeds from the proposed notes will be used by Southern
Energy to refinance its existing indebtedness and for general
corporate purposes.
The bond rating reflects Moody's expectation that Southern Energy
will complete the bond issuance upon terms and conditions that
Moody's will find satisfactory.
RATINGS RATIONALE
"Southern Energy's B2 CFR reflects its high-quality anthracite coal
reserves, strong margins and operating cash flow generation," says
Shawn Xiong, a Moody's Assistant Vice President and Analyst.
Southern Energy is an anthracite coal mining company which produces
high-quality anthracite coal. Anthracite coal is characterized by
high fixed carbon, low ash, low sulfur and low volatiles. These
factors, combined with the company's low cost of production, has
translated into strong margins, with its adjusted EBITDA margin
ranging between 54% and 60% over the last three fiscal years ended
December 31, 2016 - 2018.
Over the next 12-18 months, Moody's expects that the company's
revenue will grow at around 8% and adjusted EBITDA margin remain
around 50%, under Moody's pricing assumption of an average selling
price for anthracite coal of RMB560 per tonne.
Southern Energy also benefits from its strong ability to generate
operating cash flow. Because of the high-quality of its anthracite
coal products, the company usually receives prepayments or payments
on the day of deliveries. This situation significantly reduces
working capital requirements. Such prompt payments, combined with
the company's strong margins translates into strong operating cash
flow generation.
Moody's also points out that the company's ownership is evolving.
Government ownership currently stands at around 23%, and could
potentially increase to around 43%, if a proposed transaction to
acquire a 20% stake from Lavender Row Limited, a company owned by
Mr. Xu Bo, succeeds.
While the company is likely to benefit from its partial ownership
by the Hezhang county and Bijie City government through receiving
operational support from the government, including better access to
funding, Moody's will monitor any change in business and investment
strategy.
"Southern Energy's CFR is constrained by its small absolute scale
relative to its larger rated global peers, single commodity
concentration, significant investment needs, and exposure to the
inherent volatility in commodity prices," adds Xiong.
Southern Energy has a small absolute scale, with an annual
nameplate production capacity of around 1.35 million tonnes at
December 31, 2018. The company reported revenue and adjusted EBITDA
of around RMB641 million and RMB346 million respectively for 2018.
It owns three producing mines, the Weishe, Lasu and Luozhou mines,
with each demonstrating a nameplate annual production capacity of
around 450,000 tonnes.
At the same time, the company remains exposed to volatile commodity
prices, even though its high-quality anthracite coal reserves are
likely to lessen its exposure to large price fluctuations.
Furthermore, Moody's expects the company to incur significant
capital spending over the next 12-24 months using a combination of
operating cash flow and proceeds from proposed bond issuance, as
Southern Energy looks to develop its fourth mine, the Anlang mine.
As a result, Southern Energy's credit metrics will weaken from
their current solid levels. Moody's expects Southern Energy's
adjusted debt-to-EBITDA to increase to 3.5x to 4.0x for 2020 from
the low 0.6x in 2018, under Moody's pricing assumption of an
average RMB560 per tonne compared to an average RMB598 per tonne
for 2018.
From an environmental, social and governance perspective, Moody's
has made the assessment.
Firstly, Moody's views the global mining industry as facing
elevated emerging environmental risk, including issues related to
soil and water pollution. In China, non-compliance with
environmental and safety standards could potentially result in
large fines, suspension of production or the total loss of license
to operate. Moody's points out that the company has had some safety
incidents at its mines in the past but has since rectified the
situation.
Moody's also explains that Southern Energy currently holds the
appropriate licenses to operate and its production volume is
approved by the government. It has also incurred capital spending
in upgrading its systems and facilities, including installing the
appropriate ventilation system and automatic gas level detection
system in its underground mines, as well as the appropriate water
treatment systems.
Secondly, the company is exposed to regulatory risks, stemming from
China's evolving government policies and environmental regulations.
These risks could raise its operating costs and capital spending
levels, as it seeks to comply with changes in environmental and
safety standards.
Thirdly, Southern Energy demonstrates concentrated ownership, with
Mr. Xu Bo and Mr. Xiao Zhijun owning a total 46% stake in the
company. This situation is partially mitigated by Southern Energy's
status as a listed and regulated entity, as well as the fact that
four out of seven of its board directors are independent.
Southern Energy's liquidity is good. The company's unrestricted
cash balance of RMB189 million at December 31, 2018 and Moody's
projected cash flow from operations of RMB180-RMB190 million over
the next 12 months are adequate to cover its short-term debt of
RMB142 million and likely capital spending of about RMB115 million
over the next 12 months.
Southern Energy's senior unsecured bond rating is not affected by
subordination to claims at the operating company level, because
Moody's does not consider as material, especially because Moody's
expects that the majority of claims will remain at the holding
company level.
However, Southern Energy is exposed to legal subordination risk,
because the majority of its current borrowings are on a secured
basis. Downward pressure on the bond rating could emerge, if the
company does not succeed in paying down most of the current secured
borrowings using the proceeds from the issuance of bonds.
The stable ratings outlook reflects Moody's expectation that
Southern Energy will continue to generate steady revenue and
earnings, and the company will successfully complete the
development of its Anlang mine. Moody's also expects that Southern
Energy will maintain a prudent financial policy and adhere to sound
corporate governance and environmental standards as it expands.
What Could Change the Rating -- Up
The ratings could experience positive momentum if (1) Southern
Energy successfully completes and ramps up production at its Anlang
mine on schedule; (2) materially increases its scale and coal
reserves; (3) maintains adjusted debt/EBITDA below 2.5x on a
sustained basis; and/or (4) maintains adjusted EBITDA/interest
above 4.0x on a sustained basis.
What Could Change the Rating -- Down
Moody's could downgrade the ratings if (1) Southern Energy
experiences significantly weaker revenue, earnings and liquidity;
(2) experiences large debt-funded acquisitions or significant
execution risks; (3) adjusted debt/EBITDA exceeds 4.5x on a
sustained basis; or (4) adjusted EBITDA/interest coverage is less
than 3.0x.
The principal methodology used in these ratings was Mining
published in September 2018.
=========
I N D I A
=========
2GETHERMENTS INFRA: CRISIL Maintains B Rating in Not Cooperating
----------------------------------------------------------------
CRISIL said the rating on bank facility of 2Getherments Infra
Private Limited (TIPL) continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 25 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with TIPL for obtaining
information through letters and emails dated November 30, 2018 and
May 13, 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 TIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on TIPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the rating on bank
facility of TIPL continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Established in May, 2015, TIPL, is engaged in residential real
estate construction business in Hyderabad, Telangana. The company
has one on-going projects under the name '2Getherments'. The
company is promoted and managed by Mr.Harinath Rao.
ADITYA STEEL: CRISIL Downgrades Rating on INR17cr Loan to D
-----------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Aditya
Steel Rolling Mills Private Limited (ASRM) to 'CRISIL D/CRISIL D'
from 'CRISIL B-/Stable/CRISIL A4' owing to delays in debt
servicing. The delays have been caused by weak liquidity.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 9 CRISIL D (Downgraded from
'CRISIL A4')
Cash Credit 17 CRISIL D (Downgraded from
'CRISIL B-/Stable')
Term Loan 1 CRISIL D (Downgraded from
'CRISIL B-/Stable')
The ratings also factor in a weak financial risk profile and
working capital-intensive operations. However, the company benefits
from the extensive experience of the promoters in the steel trading
business and an established customer relationship.
Key Rating Drivers & Detailed Description
Weakness:
* Weak financial risk profile
The networth was modest at INR9.6 crore, and the total outside
liabilities to tangible networth ratio high at 6.7 times, as on
March 31, 2018. Debt protection metrics were weak, with interest
coverage ratio at 1.15 times and net cash accrual to total debt at
0.02 time in fiscal 2018.
* Exposure to intense competition
The steel trading industry has a large number players in the local
market due to limited value addition in trading operations,
resulting in stiff competition.
Strengths:
* Extensive industry experience of the promoters and an established
customer relationship
The company is a prominent steel product manufacturer and trader in
Visakhapatnam, Andhra Pradesh. Its promoters have experience of 30
years in the steel industry, which has helped them establish a
strong relationship with customers and suppliers.
Liquidity
The bank limit was almost fully utilised and was occasionally
over-utilised, but regularised in few days.
Incorporated in 1994, ASRM is promoted by Mr S K Khemka and Mr P K
Khemka. The company manufactures and trades in thermo-mechanically
treated bars and other steel intermediaries (blooms, billets, and
ingots).
AISHWARYA INFRA: CRISIL Reaffirms B Rating on INR10cr Loan
----------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B/Stable' rating on the long-term
bank facilities of Aishwarya Infrastructure and Developers (AID).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft 10 CRISIL B/Stable (Reaffirmed)
The rating continues to reflect the firm's small scale of
operations in the fragmented civil construction industry,
geographical and customer concentration in revenue and large
working capital requirement. The rating also factors in high
exposure to associate companies. These rating weaknesses are
partially offset by the extensive industry experience of the
proprietor.
Key Rating Drivers & Detailed Description
Weakness:
* Small-scale of operations, with geographic and customer
concentration in revenue: Revenue is estimated at INR13.77 crore
for fiscal 2018. The scale of operations is restricted by the
fragmented nature of the industry and geographical and customer
concentration. On account of low entry barriers in the civil
construction sector and the tender-based nature of the business,
there is intense competition from other players in the sector.
* Significant exposure to group entities: The firm has diversified
into development of two malls due to subdued demand in civil
construction. However, the investment in, and advances to, the real
estate development associate is funded mainly through unsecured
loans from the proprietor.
* Working capital-intensive operations: The firm's working capital
cycle exhibits high intensity on account of billing on milestone
basis wherein the firm can raise invoices to its customers only
after a substantial portion of the work is complete. As a result,
the firm had unbilled work amounting to more than 300 days as at
March 31, 2018.
Strength:
* Extensive experience of the proprietor: The proprietor, Mr R
Chandru, has been in the same line of business for over a decade
and has gained much experience over the years. The firm has
undertaken diverse projects for government departments in the past,
including buildings, roads, drainage works, and bridges.
Liquidity
The liquidity risk profile is adequate on account of moderate
utilization of the overdraft limit of INR10 crore and the same
remained at 53% for past 12 months ending April 2019. But the same
remains primarily constrained because the unsecured loans are
almost entirely invested in/ lent to AID's group entities.
Outlook: Stable
CRISIL believes AID will continue to benefit from the extensive
industry experience of its proprietor. The outlook may be revised
to 'Positive' in case of a significant ramp-up in the scale of
operations along with efficient working capital management. The
outlook may be revised to 'Negative' if continued subdued demand
leads to further pressure on turnover and profitability, or if a
stretch in working capital and further support to associate
entities weakens liquidity.
Set up in 1986, AID undertakes civil construction works
specializing in construction of roads, buildings, and drainage
systems, and in repairs. The firm is a registered Class IA
contractor with the Public Works Department, Karnataka. It
primarily undertakes contracts for Bruhat Bengaluru Mahanagara
Palike.
AMBER SPINTEX: Ind-Ra Assigns BB+ LT Issuer Rating, Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Amber Spintex
Private Limited (ASPL) a Long-Term Issuer Rating of 'IND BB+'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR932.10 mil. Term loan due on October 2026 assigned with IND
BB+/Stable rating;
-- INR250.00 mil. Fund-based limits assigned with IND
BB+/Stable/IND A4+ rating; and
-- INR52.50 mil. Non-fund-based limits assigned with IND A4+
rating.
KEY RATING DRIVERS
The ratings reflect ASPL's weak credit metrics due to high debt-led
(74.47% through bank borrowings) capital expenditure of INR940.00
million incurred in mid-FY19. According to the provisional
financials for FY19, the company recorded interest coverage
(operating EBITDA/gross interest expense) of 2.51x (FY18:3.49x) and
net leverage (adjusted net debt/operating EBITDAR) of 5.22x
(3.13x).
The ratings also reflect the company's modest and volatile
profitability (FY19: 15.01%, FY18: 14.98%, FY17:18.30%) due to the
fluctuating raw material prices. Subsidies in terms of interest and
electricity add comfort to profitability. The return on capital
employed in the company stood at 7% in FY19 (FY18: 11%).
The ratings are supported by ASPL's large scale of operations
despite a short track record of operations. Revenue grew 35.48% YoY
to INR1,681.50 million in FY19 on increased orders. ASPL booked
revenue of INR234.4 million in April 2019. It has total outstanding
orders worth INR250.00 million to be executed by May 2019. Ind-Ra
expects the top line to improve in the near term with FY20 being
the first fully operational year of production for the company's
new compact yarn segment.
The ratings consider the company's moderate liquidity with average
maximum utilization of its fund-based limits being 90.51% for the
12 months ended April 2019. Also, cash flow from operations
remained positive for the third consecutive year at INR95.18
million in FY19 (FY18: INR71.30 million). ASPL's total repayment
obligation towards long-term borrowings for FY20 is INR109.90
million.
The rating is supported by the promoter's experience of more than a
decade in the textile industry.
RATING SENSITIVITIES
Positive: A sustained improvement in the overall business profile
and net leverage being sustained below 3.0x will be positive for
the ratings.
Negative: Any deterioration in the overall business profile and
credit metrics will be negative for the ratings.
COMPANY PROFILE
Incorporated in October 2015, ASPL manufactures cotton yarn with an
installed capacity of 11,000 metric tons per annum.
CHAMPALAL MOTILAL: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Champalal Motilal Steel Company Private Limited
229 S T Road opp Sant Tukaram
Mandir Carnac Bunder
Mumbai MH 400009
Insolvency Commencement Date: June 10, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: December 7, 2019
Insolvency professional: Mr. Rajan Rawat
Interim Resolution
Professional: Mr. Rajan Rawat
B-602 Azziano
Rustomjee Urbania Majiwada
Thane (W) Mumbai 400601
E-mail: rajanrawat61@rediffmail.com
Last date for
submission of claims: June 24, 2019
H.M. INDUSTRIAL: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: H.M. Industrial Private Limited
R.S.No. 1035/1+2+3
Modasa Road
Kapadwanj, Kheda
Gujarat 387620
Insolvency Commencement Date: June 7, 2019
Court: National Company Law Tribunal, Ahmedabad-Gujarat Bench
Estimated date of closure of
insolvency resolution process: December 3, 2019
Insolvency professional: Sunil Kumar Agarwal
Interim Resolution
Professional: Sunil Kumar Agarwal
Tower 6/603, Devnandan Heights
Near Poddar School
New C.G. Road
Chandkheda, Ahmedabad
Gujarat 382424
E-mail: cirp.hmi@gmail.com
anil91111@hotmail.com
Last date for
submission of claims: June 26, 2019
JAGANNATH TRADERS: CRISIL Cuts INR10cr Loan Rating to D, Not Coop.
------------------------------------------------------------------
CRISIL has downgraded the rating of Jagannath Traders - Delhi (JT)
to 'CRISIL D/Issuer Not Cooperating' from 'CRISIL B+/Stable Issuer
Not Cooperating' due to delays in debt servicing and subsequently
the company's account being classified as NPA by Union Bank of
India.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with JT for obtaining
information through letters and emails, dated February 28, 2019,
May 7, 2019, and May 13, 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 has
failed to receive any information on either the financial
performance or strategic intent of JT. This restricts CRISIL's
ability to take a forward-looking view on the entity's credit
quality. CRISIL believes the information available on JT is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower.
Based on the publicly available information, CRISIL has downgraded
the rating of JT to 'CRISIL D/Issuer Not Cooperating' from 'CRISIL
B+/Stable Issuer Not Cooperating' due to delays in debt servicing
and subsequently the company's account being classified as NPA by
Union Bank of India.
JT, based in Delhi, was established as a partnership firm between
Mr Pawan Sharma and Mr Jatin Sharma in 2014. It trades in dry
fruits, such as almonds, and herbs and spices, including cloves and
poppy seeds.
JAIN IRRIGATION: S&P Downgrades ICR to 'B-', Placed on Watch Neg.
-----------------------------------------------------------------
On June 20, 2019, S&P Global Ratings lowered its long-term issuer
credit and issue ratings on Jain Irrigation to 'B-' from 'B+'. S&P
also placed the ratings on CreditWatch with negative implications.
The CreditWatch placement signals a 50% probability that S&P will
lower its ratings by one or more notches over the next three
months, if the company is unable to improve its liquidity.
S&P lowered its ratings on Jain Irrigation to reflect a
deterioration in the company's liquidity and its
higher-than-expected leverage as a result of slow-to-clear
receivables. These risks are further compounded by the heightened
uncertainty about the India's 2019 monsoon performance, which can
dampen the retail sale prospects of Jain Irrigation's
micro-irrigation systems.
Jain Irrigation has a very low cash balance and significant
dependence on short-term working capital lines from Indian banks.
The company also has committed but unutilized lines of credit of
Indian rupee (INR) 10.5 billion to support its liquidity needs over
the next six to 12 months. However, this may not be sufficient to
meet the continued buildup in working capital requirements unless
the company reins in it receivables or the banks lend further
support.
Government-led irrigation projects comprise a rising share of Jain
Irrigation's receivables. As result, the company's fiscal 2019
(year ended March 31, 2019) ratio of funds from operations (FFO) to
debt reached 12.9%, closer to our 12% downgrade trigger. During
fiscal 2019, free-operating cash flow (FOCF) was a negative INR6.3
billion, compared with S&P's estimates of a positive FOCF of INR2.0
billion. As of March 31, 2019, government-project related
receivables accounted for 25% of Jain Irrigation's total
receivables, compared with 15.4% a year ago. These receivables are
also equal to 90.5% of the revenues recognized during fiscal 2019
from such projects, indicating an anemic recovery. Irrigation
project revenues account for about 10% of the total revenues of
Jain Irrigation.
S&P said, "We believe the rise in receivables could be temporary,
caused by slow functioning of Indian government institutions during
the run-up to the recently concluded federal elections. However,
further delays in collections coupled with sub-par monsoons could
pose challenges to Jain Irrigation's stretched working capital
positions and liquidity.
"Nevertheless, the new Indian government has articulated its
intention to provide necessary support to the Indian farming
community and alleviate some of the distress in the agricultural
sector. We also believe their renewed focus on irrigation projects,
which largely benefits the farmers, could result in faster
execution as well as release of payments to companies such as Jain
Irrigation.
"We think the company's business position is susceptible to rising
operational risks. Jain Irrigation's agriculture-reliant
operations, especially the Indian micro-irrigation system's
segment, are seasonal and are not entirely within the company's
control. Any large variations in farm productivity due to vagaries
of monsoons or pest attacks and significant working capital
fluctuations remain a risk to the company's credit profile.
"In our view, Jain Irrigation's food processing business and its
increasing international presence, especially in more resilient
markets like the U.S., provide a much-needed cushion to the
volatility from India. We also expect the recent downward trends in
crude prices to benefit the company's largely plastic-consuming
pipes business, although oil prices continue to remain volatile
given the emerging global trade and tariff barriers.
"Management has committed to reduce Jain Irrigation's external debt
by INR20.0 billion over the next 18-24 months, from about INR52.4
billion as of March 31, 2019. However, the reduction plan seems to
be at an early stage and hinges largely on strategic measures such
as an IPO of the food-processing business. Given the uncertainty of
such events, we do not factor them in our base-case estimates.
"We placed the rating on CreditWatch with negative implications to
reflect a 50% probability that we will lower our ratings on Jain
Irrigation by one or more notches over the next three months. This
will happen if we see continued delays in receivables collection
decreasing Jain Irrigation's capability to service its debt
obligations.
"We could also lower the rating if we see weakening in the
company's banking relationships, which are crucial for funding
large working capital requirements and movements during the year.
"We could affirm our ratings over the next three months if we gain
confidence that Jain Irrigation has improved its liquidity buffer."
This could be through a combination of new additional working
capital facilities and maintenance of sufficient cash balances
through quicker receivables collections. This assumes that the
company is able to maintain its banking relationships.
Jain Irrigation is an India-based company engaged in the
manufacture of plastics-based micro-irrigation piping and plumbing
systems. It is the world's second-largest provider of such systems,
behind Israel-based Netafim Ltd. The company also has a growing
food processing business, which mainly produces fruit pulp,
dehydrated onions, and spices.
JET AIRWAYS: NCLT Admits Creditors' Insolvency Petition
-------------------------------------------------------
Reuters reports that India's bankruptcy court, the National Company
Law Tribunal (NCLT), on June 20 accepted an insolvency petition
against Jet Airways Ltd filed by its creditors as they attempt to
recover some of their dues.
According to Reuters, the insolvency process will allow lenders to
sell the company as a whole or in parts, laying out a fixed
timeline for a resolution around its future.
Jet Airways, once India's biggest private carrier, stopped flying
in April after running out of cash, leaving thousands without jobs
and pushing up air fares across the country.
Reuters relate that the tribunal urged resolution professionals to
try and finish the process in three months, and submit fortnightly
progress reports, saying the matter was of national importance.
Law firm Cyril Amarchand Mangaldas will represent the interests of
the lenders' consortium, Reuters says. Indian financial newspaper
Mint on June 19 reported that lenders had named Ashish Chhawchharia
of Grant Thornton India as the resolution professional, Reuters
relays.
Sources told Reuters earlier last week that Jet's pilots and cabin
crew, who are owed at least INR4 billion ($57 million) in unpaid
salaries from January to May, had also sought legal advice on
filing an insolvency petition.
About Jet Airways
Based in Mumbai, India, Jet Airways (India) Limited --
https://www.jetairways.com/ -- provided passenger and cargo air
transportation services. It also provided aircraft leasing
services. It operated flights to 66 destinations in India and
international countries.
As reported in the Troubled Company Reporter-Asia Pacific on April
22, 2019, Reuters said Jet Airways Ltd on April 17 halted all
flight operations after its lenders rejected its plea for emergency
funds, potentially bringing the curtains down on what was once
India's largest private airline.
Lenders of Jet Airways led by SBI are currently in the process of
selling the airline to recover their dues of over INR8,400 crore,
The Economic Times reported. Private equity firm TPG Capital,
Indigo Partners, National Investment and Infrastructure Fund (NIIF)
and Etihad Airways are in the race to buy a stake in the grounded
Jet Airways, ET said.
The total liabilities of the airline, including unpaid salaries and
vendor dues, are nearly INR15,000 crore, Livemint disclosed.
Two operational creditors, Shaman Wheels Pvt Ltd and Gaggar
Enterprises Pvt Ltd, filed separate insolvency pleas against the
carrier for recovery of dues on June 10, 2019.
JET AIRWAYS: SBI Says Etihad Open Offer Waiver Demand Not Feasible
------------------------------------------------------------------
BloombergQuint reports that the State Bank of India on June 21 said
Etihad Airways PJSC had sought waiver of open offer and assurance
of flying slots for acquiring Jet Airways (India) Ltd., but the
lenders to the crisis-hit carrier had no authority to accommodate
the relaxations sought.
BloombergQuint relates that SBI chairman Rajnish Kumar had on June
20 defended the lenders' decision to opt for Jet Airways bankruptcy
saying "it was their last effort to find a resolution" for the
grounded airline and also did not rule out the possibility of
liquidation.
Earlier last week, an SBI-led consortium of 26 lenders decided to
take Jet Airways to the National Company Law Tribunal for
bankruptcy proceedings under the Insolvency and Bankruptcy Code as
they had received only a conditional bid from the Etihad-Hinduja
combine, BloombergQuint says.
In a filing to the stock exchanges on June 21, SBI said with the
financial situation of Jet Airways being weak, lenders were
continuously trying for viable resolution for last one year on
account of operational losses, according to BloombergQuint.
In this regard, it added, reputed consultants SBI Capital Markets
and McKinsey and Co. Inc. were roped in as process
advisers/advisers. It was also decided to initiate a bidding
process to bring in new investors, SBI said, BloombergQuint adds.
As part of the bidding process, Expressions of Interest for Jet
Airways were sought from interested participants, the report says.
Etihad, National Investment and Infrastructure Fund, TPG Capital
and Indigo Partners had expressed their interest on April 10. The
bidding process closed on May 10.
BloombergQuint relates that after closure of the bidding, as no
binding bids were received, discussions were held with Etihad
Airways and other prospective investors to find a way for infusion
of funds, SBI said.
"Etihad had sought certain relaxations viz. waiver of open offer,
assurance of flying slots, etc. As the lenders did not have any
authority to accommodate some of the relaxations sought by Eithad
it was not considered feasible to negotiate on the conditions laid
by Etihad," SBI said in the filing, BloombergQuint relays.
Since a sustainable resolution plan could not be devised and two
operational creditors had already approached the NCLT, "the member
banks agreed in-principle, to approach NCLT, pursuant to the
statutory right available to them" under the Insolvency and
Bankruptcy Code, 2016.
Accordingly, an application for Corporate Insolvency Resolution
Process was filed with NCLT Mumbai on June 17, it said .
"That bank is only a lender to Jet Airways (India) Ltd. and is not
involved in or responsible for the management of the affairs of the
said company," SBI, as cited by BloombergQuint, said. "It is the
responsibility of Jet Airways (lndia) Ltd. to disclose required
information under Regulation 30 of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015."
BloombergQuint adds that the state-own bank also said that
initiation of instant insolvency proceedings is just a step for
resolution/recovery under the statutory right available to the
lenders.
About Jet Airways
Based in Mumbai, India, Jet Airways (India) Limited --
https://www.jetairways.com/ -- provided passenger and cargo air
transportation services. It also provided aircraft leasing
services. It operated flights to 66 destinations in India and
international countries.
As reported in the Troubled Company Reporter-Asia Pacific on April
22, 2019, Reuters said Jet Airways Ltd on April 17 halted all
flight operations after its lenders rejected its plea for emergency
funds, potentially bringing the curtains down on what was once
India's largest private airline.
Lenders of Jet Airways led by SBI are currently in the process of
selling the airline to recover their dues of over INR8,400 crore,
The Economic Times reported. Private equity firm TPG Capital,
Indigo Partners, National Investment and Infrastructure Fund (NIIF)
and Etihad Airways are in the race to buy a stake in the grounded
Jet Airways, ET said.
The total liabilities of the airline, including unpaid salaries and
vendor dues, are nearly INR15,000 crore, Livemint disclosed.
Two operational creditors, Shaman Wheels Pvt Ltd and Gaggar
Enterprises Pvt Ltd, filed separate insolvency pleas against the
carrier for recovery of dues on June 10, 2019.
KAJUWALLA: CRISIL Cuts INR10cr Loan Rating to D, Not Cooperating
----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Kajuwalla to 'CRISIL D Issuer Not Cooperating' from 'CRISIL
B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit & 10 CRISIL D (ISSUER NOT
Working Capital COOPERATING; Downgraded from
demand loan 'CRISIL B+/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with Kajuwalla for
obtaining information through letters and emails dated February 28,
2019, May 7, 2019 and May 13, 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 has
not received any information on either the financial performance or
strategic intent of Kajuwalla. This restricts CRISIL's ability to
take a forward-looking view on the credit quality of the entity.
CRISIL has downgraded its ratings on the bank facilities of
Kajuwalla to 'CRISIL D Issuer Not Cooperating' from 'CRISIL
B+/Stable Issuer Not Cooperating'.
The downgrades reflect persistent delay by Kajuwalla, in servicing
of debt.
Established in 2012, Kajuwalla, a proprietorship concern by Mr
Jatin Sharma, trades in dry fruits. It is based in Delhi.
KALRA OVEREAS: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Kalra Overseas & Precision Engineering Limited
Registered office:
Office No. 411/412, City Point
Street No. 17, Boat Club Road, Pune
Maharashtra 411001
Insolvency Commencement Date: June 14, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: December 11, 2019
Insolvency professional: Ashish Vyas
Interim Resolution
Professional: Ashish Vyas
B-1A Viceroy Court CHS
Thakur Village, Kandivali East
Mumbai 400101
E-mail: ashishvyas2006@gmail.com
- and -
103 Arch Gold Apt.
Next To MTNL Exchange
S.V. Road, Poinsar
Kandivali (West)
Mumbai 400067
E-mail: ipkopepl@gmail.com
Last date for
submission of claims: June 28, 2019
LOK HOUSING: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Lok Housing & Constructions Limited
Registered office:
Shop No. 4, Lokbhavan
Ground Floor, Lok Bharati Complex
Marolmaroshi Road, Andheri (E)
Mumbai 400059
Insolvency Commencement Date: June 3, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: December 1, 2019
(180 days from commencement)
Insolvency professional: Hemant J. Mehta
Interim Resolution
Professional: Hemant J. Mehta
B-4, Panchsheel
Nathpai Ngr., Ghatkopar (E)
Mumbai 77
E-mail: hemant@apmh.in
- and -
D-613/614 Neelkanth Business Park
Opp. Railway Station
Vidyavihar (W), Mumbai
Maharashtra 400086
E-mail: ip.lokhsg@gmail.com
Classes of creditors: Allotees Under Real Estate Projects
Insolvency
Professionals
Representative of
Creditors in a class: Mr. Devarajan Raman
V.V. Anand
Mr. Manish Motilal Jaju
Last date for
submission of claims: June 27, 2019
PATNA BAKHTIYARPUR: Ind-Ra Migrates D LT Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Patna Bakhtiyarpur
Tollway Limited's (PBTL) long-term bank loans' 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 the rating. The rating will now
appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating action is:
-- INR7,145.89 bil. Bank loans (long-term) migrated to non-
cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
June 8, 2018. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
PBTL is a special-purpose vehicle incorporated to implement a
50.65km lane expansion (four-laning) between Anisabad in Patna and
Bakhtiyarpur on the National Highway-30 (NH-30) in Bihar under an
18-year concession from the National Highways Authority of India
('IND AAA'/Stable).
PURNO-GOURI COLD: CRISIL Migrates B Rating From Not Cooperating
---------------------------------------------------------------
Due to inadequate information, CRISIL, in line with Securities and
Exchange Board of India guidelines, had migrated its rating on the
long-term bank facility of Purno-Gouri Cold Storage Private Limited
(PGCSPL) to 'CRISIL B/Stable Issuer Not Cooperating'. PGCSPL has
subsequently provided the necessary information and CRISIL has
migrated the long-term rating from 'CRISIL B/Stable Issuer Not
Cooperating' to 'CRISIL B/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B/Stable (Migrated
from 'CRISIL B/Stable
ISSUER NOT COOPERATING')
Proposed Long Term 0.86 CRISIL B/Stable (Migrated
Bank Loan Facility from 'CRISIL B/Stable
ISSUER NOT COOPERATING')
Term Loan 3.14 CRISIL B/Stable (Migrated
from 'CRISIL B/Stable
ISSUER NOT COOPERATING')
Working Capital 1 CRISIL B/Stable (Migrated
Facility from 'CRISIL B/Stable
ISSUER NOT COOPERATING')
The rating continues to reflect PGCSPL's weak financial risk
profile, and exposure to intense competition and to regulatory
risks in the West Bengal cold storage industry. These weaknesses
are partially offset by the extensive experience of the promoters.
Key Rating Drivers & Detailed Description
Weakness:
* Weak financial risk profile: The networth was small and gearing
high, estimated around INR2.4 crore and 3 times, respectively, as
of March 2019. The networth remains small despite the equity
infusion in fiscal 2018. The gearing, however, may improve over the
medium term backed by gradual debt repayment and steady accretion
to reserve.
* Exposure to risks related to the highly regulated and competitive
nature of the cold storage industry: The potato cold storage
industry in West Bengal is regulated by the West Bengal Cold
Storage Association. Rental rates are fixed by the state department
of agricultural marketing, which limits players' ability to earn
profit based on individual strengths and geographical advantages.
Furthermore, the industry is highly fragmented, with the largest
player having a market share of less than 0.5%. This further limits
bargaining power and forces players to offer discounts to ensure
healthy capacity utilisation.
Strengths:
* Extensive experience of the promoters: The promoter family has
been in the cold storage segment for over 15 years, and has
maintained healthy relationships with potato farmers and traders;
this should continue to support the business risk profile.
Liquidity
Liquidity will, likely, remain adequate. Cash accrual should be
adequate for debt servicing: maturing debt is estimated around
INR50 lakh in fiscal 2019. Working capital facilities remain highly
utilised during the peak season'March and April. Current ratio was
weak around 0.60 time as of March 2019.
Outlook: Stable
CRISIL believes PGCSPL will continue to benefit from the extensive
experience of its promoters. The outlook may be revised to
'Positive' if improved cash accrual and working capital management,
most likely driven by timely stabilisation of operations,
strengthens financial risk profile, particularly liquidity. The
outlook may be revised to 'Negative' if delays in repayment by
farmers, low cash accrual, or a sizeable debt-funded capital
expenditure weakens liquidity.
PGCSPL was incorporated in 2016 by the promoters, Mr Kartik Ghosh
and Mrs Jhulan Ghosh. The company provides cold storage services to
potato farmers and traders, and undertakes opportunistic trading in
potatoes. The unit, located in Bankura, West Bengal has a storage
capacity of 221,000 quintals.
R.S. FOODS: CRISIL Maintains B Rating in Not Cooperating
--------------------------------------------------------
CRISIL said the ratings on bank facilities of R.S. Foods (RSF)
continues to be 'CRISIL B/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Term Loan 16.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with RSF for obtaining
information through letters and emails dated November 30, 2018 and
May 13, 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 RSF, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on RSF is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of RSF continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Set up in 2015, RSF is setting up a milk processing and milk powder
plant with a capacity of 1 lakh litres per day (lpd) in Ranchi.
RELCON FOUNDATIONS: CRISIL Reaffirms B+ Rating on INR4.65cr Loan
----------------------------------------------------------------
CRISIL has reaffirmed the ratings of Relcon Foundations Private
Limited (RFPL) at 'CRISIL B+/Stable/CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2 CRISIL A4 (Reaffirmed)
Cash Credit 1.35 CRISIL B+/Stable (Reaffirmed)
Proposed Cash
Credit Limit 2 CRISIL B+/Stable (Reaffirmed)
Proposed Working
Capital Facility 4.65 CRISIL B+/Stable (Reaffirmed)
The ratings reflect its large working capital requirement and
modest scale of operations. These weaknesses are partially offset
by its extensive experience of its promoters in civil construction
industry.
Key Rating Drivers & Detailed Description
Weaknesses
* Large working capital requirement
RFPL's operations are working capital intensive as reflected in its
gross current asset of more than 300 days in fiscal 2019 due to
high receivables of around 169 days. RFPL is partially benefitted
by its payables of 100-150 days in the said period.
* Modest scale of operations
RFPL has reported revenue of around INR16.5 crores in fiscal 2019
in spite of long presence in industries, scale of operation has
remained modest.
Strength
* Extensive experience of its promoters in civil construction
industries: RFPL is a family owned business was established by Mr.
T.K. Alexander Vaidian in the year 1987. Mr. T.K Alexander is an
engineer by profession. In 1965, he completed his graduation in
Civil Engineering from Trivandrum Engineering College, Kerala
University. He has more than 50 years of experience in civil
construction.
Liquidity
Liquidity will remain adequate, with annual cash accrual expected
at INR0.4-0.5 crore over the medium term, against negligible debt
obligation of around 0.1-0.15 crores in 2018-19. Bank limits are
fully utilised.
Established in 1987, by Mr. T.K. Alexander Vaidian, based in
Kerala are engaged into piling foundation work.
S. M. SHANKARRAO: CRISIL Reaffirms C Rating on INR300cr Loan
------------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank facilities of S. M.
Shankarrao Mohite Patil S. S. K. Ltd (SM) at 'CRISIL C/CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 22.47 CRISIL C (Reaffirmed)
Long Term Loan 31.04 CRISIL C (Reaffirmed)
Medium Term Loan 36.48 CRISIL C (Reaffirmed)
Proposed Long Term
Bank Loan Facility 3.73 CRISIL C (Reaffirmed)
Short Term Loan 6.28 CRISIL A4 (Reaffirmed)
Sugar Pledge
Cash Credit 300.00 CRISIL C (Reaffirmed)
The rating reflects weak financial risk profile because of subdued
capital structure and debt protection metrics, large working
capital requirement, and exposure to regulatory risks and
cyclicality in the sugar industry. These weaknesses are partially
offset by established relationships with farmers, and promoter's
extensive experience in the sugar industry.
Key Rating Drivers & Detailed Description
Weaknesses
* Weak financial risk profile: The capital structure is weak as
reflected in estimated gearing and total outside liabilities to
adjusted net worth (TOL/ANW) of 13.94 times and 17.6 times
respectively as on March 31, 2019. Debt protection metrics is
subdued marked by estimated interest coverage of 1.77 times and net
cash accruals to total debt of 0.05 times in fiscal 2019. Liquidity
is stretched, as reflected in almost fully utilised bank limit, and
net cash accrual is likely to be inadequate to meet debt obligation
which shall necessitate refinancing.
* Large working capital requirement: Operations are working capital
intensive as the business is seasonal. Crushing season starts in
November-December and ends by April. The inventory is high, over
500 days at the end of the fiscal, because of stocking of sugar
produced during the season to be sold the next year.
* Exposure to regulatory changes and cyclicality in sugar industry:
Regulatory mechanisms and dependence on monsoon cause cyclicality
in the sugar industry. The government regulates the domestic
demand-supply scenario by restricting import and export. While
input prices are determined by the government, sugar prices are
driven by open market prices, which depend on production. Operating
margin varied sharply in the three fiscals through 2019, because of
volatile sugar prices.
Strengths
* Promoter's extensive experience in sugar industry: Promoters'
extensive experience of more than 50 years in the sugar industry
and has established relationships with cane producers in its
command area. The production of electricity using bagasse (a
byproduct in the production of sugar) supports the business risk
profile.
Liquidity
SM has stretched liquidity as reflected in inadequate cash accruals
of INR15-17 crore per annum in fiscal 2020 and fiscal 2021 against
repayment obligations of around INR39 crore in fiscal 2020. Cash
and cash equivalents is low at INR4.48 crore as on March 31,
2019SM's fund based limits of INR3.00 crore is 95% utilised on an
average over the 11 months ended March 2019.
SM set up in 1960 by the late Mr. Shankarrao Mohite-Patil. The
society operates a single-unit sugar factory at Akluj in Solapur
(Maharashtra) with a cane crushing capacity of 7500 tcd and a
co-gen plant of 30MW. The company is managed by Mr. Jaysinh
Mohite-Patil and Mr. Vijaysinh Mohite-Patil.
SHARADA FLOUR: CRISIL Maintains B Rating in Not Cooperating
-----------------------------------------------------------
CRISIL said the ratings on bank facilities of Sharada Flour
Products India Private Limited (SFPIPL) continues to be 'CRISIL
B/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Term Loan 1.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SFPIPL for obtaining
information through letters and emails dated November 30, 2018 and
May 13, 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 SFPIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SFPIPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of SFPIPL continues to be 'CRISIL B/Stable Issuer not
cooperating'.
SFPIPL was established in 2010 at Kollam (Kerala), by promoter, Mr
Muraleedharan Nair and his family members. The company processes
wheat into different products such as maida, suji, and aata.
SHRI VISHNU: CRISIL Maintains D Rating in Not Cooperating
---------------------------------------------------------
CRISIL said the ratings on bank facilities of Shri Vishnu Overseas
Private Limited (SVOL; a part of the Shri Vishnu group) continues
to be 'CRISIL D/CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 55 CRISIL D (ISSUER NOT
COOPERATING)
Export Packing 20 CRISIL D (ISSUER NOT
Credit COOPERATING)
Foreign Bill 20 CRISIL D (ISSUER NOT
Purchase COOPERATING)
Packing Credit 30 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SVOL for obtaining
information through letters and emails dated November 30, 2018 and
May 13, 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 SVOL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SVOL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of SVOL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of Shri Vishnu Eatables (India) Ltd (SVEL)
and Shri Vishnu Overseas Pvt Ltd (SVOL), herein referred to as the
Shri Vishnu group. This is primarily because both entities are
controlled by the same management and are engaged in the same
business - processing of rice. The entities also derive
considerable operational and business synergies from each other.
SVOL was set up in 1995 by the same promoters. The group is in the
business of milling rice as well as wheat. The processing unit of
the group is located in Kaithal, Haryana.
SVEL was set up as a partnership firm in 1993 and was incorporated
in 1996 by Mr. Banarasi Lal Mittal and his five sons. The group
mills paddy and trades rice and related items. SVEL's processing
unit is in Kaithal (Haryana).
SIDDHI VINAYAK: CRISIL Maintains B+ Rating in Not Cooperating
-------------------------------------------------------------
CRISIL said the rating on bank facilities of Siddhi Vinayak Cotton
Industries (Bhavnagar) (SVCI) continues to be 'CRISIL B+/Stable
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term .18 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with SVCI for obtaining
information through letters and emails dated November 30, 2018 and
May 13, 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 SVCI, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SVCI is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the rating on bank
facilities of SVCI continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
SVCI, established in 2007, is owned and managed by Mr Bharatbhai
Kukadiya. The firm operates a cotton ginning and pressing unit in
Palitana, Gujarat.
SILICON INSTITUTE: CRISIL Lowers Rating on INR13.2cr Loan to B+
---------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Silicon
Institute of Technology (SIT) to 'CRISIL B+/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
Long Term Loan 13.2 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with SIT for obtaining
information through letters and emails dated November 30, 2018 and
May 13, 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 SIT, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SIT is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of SIT revised to be 'CRISIL B+/Stable Issuer not
cooperating'.
SIT was set up in 1999 and operates an engineering institute in
Bhubaneswar. The institute has about 2400 students, and offers
graduate and post-graduate courses in engineering and Master of
Computer Application (MCA) course. The courses are approved by All
India Council for Technical Education and affiliated to the Biju
Patnaik University of Technology.
SOUTHERN GOLD: Ind-Ra Cuts LT Issuer Rating to 'D', Not Cooperating
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Southern Gold
Private Limited's (SGPL) Long-Term Issuer Rating to 'IND D (ISSUER
NOT COOPERATING)' from 'IND BB- (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 now appear as 'IND D (ISSUER NOT
COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR137.5 mil. Term loan (Long-term) due on October 2022 to
February 2024 downgraded with IND D (ISSUER NOT COOPERATING)
rating; and
-- INR700.0 mil. Fund-based working capital limits (Long-
term/Short-term) downgraded 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 ratings have been downgraded following SGPL's classification as
a non-performing asset by the lenders.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
COMPANY PROFILE
Incorporated in 2010, SGPL is involved in the wholesale and retail
sale of gold bullion and gold ornaments in domestic and overseas
markets.
SRI VYJAYANTHI: CRISIL Maintains D Rating in Not Cooperating
------------------------------------------------------------
CRISIL said the ratings on bank facilities of Sri Vyjayanthi Labs
Private Limited (SVLPL) continues to be 'CRISIL D/CRISIL D Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL D (ISSUER NOT
COOPERATING)
Foreign Letter 1 CRISIL D (ISSUER NOT
of Credit COOPERATING)
Long Term Loan 1 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term
Bank Loan Facility 4 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SVLPL for obtaining
information through letters and emails dated November 30, 2018 and
May 13, 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 SVLPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SVLPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of SVLPL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
SVLPL is promoted by Mr. V Satyanarayana Raju and Mrs. M. Sridevi.
The company has its manufacturing facility at Parvada (Andhra
Pradesh). It manufactures mineral and drugs, which are supplied to
various pharmaceutical companies.
SRIRAMAGIRI SPINNING: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: Sriramagiri Spinning Mills Limited
Plot No. 410, Road No. 22, Jubilee Hills
Hyderabad 500033, Telangana
Insolvency Commencement Date: December 4, 2018
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: June 2, 2019
Insolvency professional: C BalaMouli
Interim Resolution
Professional: C BalaMouli
1-7-297/18A, 125 M.G. Road
Parsi Compound
Behind Godrej Show Room, Secunderabad
Telangana 500003
E-mail: irpcbmouli@gmail.com
srgrspinn@gmail.com
Last date for
submission of claims: December 18, 2019
SUNBEAM DEALERS: CRISIL Maintains B+ Rating in Not Cooperating
--------------------------------------------------------------
CRISIL said the rating on bank facility of Sunbeam Dealers Private
Limited (SDPL) continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SDPL for obtaining
information through letters and emails dated November 30, 2018 and
May 13, 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 SDPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SDPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the rating on bank
facility of SDPL continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
SDPL established in 2013 is engaged in the trading of in trading of
cotton, synthetic and grey fabrics. The company is promoted by Mr.
Amit Sarawgi & Mr. Swati Sarawgi and it is based out in Ranchi,
Jharkhand.
SUPREME SALES: CRISIL Cuts INR9.6cr Loan Rating to B+, Not Coop.
----------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Supreme Sales
(SS) to 'CRISIL B+/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9.6 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with SS for obtaining
information through letters and emails dated November 30, 2018 and
May 13, 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 SS, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SS is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of SS revised to be 'CRISIL B+/Stable Issuer not
cooperating'.
SS is an authorised dealer for all two wheelers of HMCL for
Koraput, Malkangiri and Mawrangpur districts in Odisha. The firm
has one 3S (sales-service-spares) showroom in Jeypore and it also
has 12 sub-dealer cum retail outlets across its dealership area
emulating the hub-and-spoke model. The firm was established and
commenced its dealership in 1987. It is promoted, owned and managed
by Mr Rajpal Khurana.
SWASTICK TUBES: CRISIL Lowers Rating on INR8.5cr Loan to B+
-----------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Swastick Tubes
Private Limited (STPL) to 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 4 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Cash Credit 8.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with STPL for obtaining
information through letters and emails dated November 30, 2018 and
May 13, 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 STPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on STPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of STPL revised to be 'CRISIL B+/Stable/CRISIL A4 Issuer
not cooperating'.
Incorporated in 1992, STPL is a Kanpur (Uttar Pradesh)-based
company that manufactures PVC pipes. The company is promoted by Mr.
Arun Agarwal and his family members.
THARUN TEXSPIN: CRISIL Lowers Rating on INR7cr Cash Loan to B+
--------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Tharun Texspin
Mills Private Limited (TTMPL) to 'CRISIL B+/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Long Term Loan 0.3 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Proposed Cash 7 CRISIL B+/Stable (ISSUER NOT
Credit Limit COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Proposed Working 0.7 CRISIL B+/Stable (ISSUER NOT
Capital Facility COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with TTMPL for obtaining
information through letters and emails dated November 30, 2018 and
May 13, 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 TTMPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on TTMPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of TTMPL revised to 'CRISIL B+/Stable Issuer not
cooperating'.
TTMPL, established in 2013, manufactures cotton yarn. The company's
facility is located at Palladam (Tamil Nadu). Its day-to-day
operations are managed by Mr. Chandrasekar and Mrs. Baby
Chandrasekar.
VEL SHREE: CRISIL Downgrades Rating on INR26cr Loan to B+
---------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Vel Shree
R.Rangarajan Dr. Sagunthala Rangarajan Educational Academy (Vel
Shree) to 'CRISIL B+/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 26 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
CRISIL BB/Stable ISSUER NOT
COOPERATING')
Overdraft 9 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
CRISIL BB/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with Vel Shree for
obtaining information through letters and emails dated January 23,
2019 and May 28, 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 Vel Shree, which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes information available on Vel Shree
is consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of Vel Shree revised to be 'CRISIL B+/Stable Issuer not
cooperating'.
For arriving at the rating CRISIL has combined the business and
financial risk profiles of Vel Shree and Veltech Rangarajan Dr
Saganthula Randd Institute of Technology Trust (VTT). That's
because both the trusts, together referred to as the Vel Shree
group, operate in similar lines of business, have a common
management team, and have significant operational and financial
linkages.
Vel Shree was established in 1992 as a private trust under the
Indian Trust Act 1882. The trust comprises two educational
institutions: Vel Tech Polytechnic College and Shri Vel's Estate
Matriculation Higher Secondary School. VTT has been a deemed
university since 2008; it offers undergraduate and postgraduate
engineering and management courses.
Vel Shree and VTT are a part of the Vel group, which also includes
INRTrust (rated 'CRISIL BBB/Stable') and Vel Trust 1997 ('CRISIL
BBB/Stable'). The group chairman, Dr R Rangarajan, and vice
chairman, Dr Sakunthala Rangarajan, manage the daily operations of
all the trusts.
VIDHATRI EXPORTS: CRISIL Maintains B Rating in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Vidhatri Exports
Private Limited (VEPL) continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Export Packing 6 CRISIL B/Stable (ISSUER NOT
Credit COOPERATING)
CRISIL has been consistently following up with VEPL for obtaining
information through letters and emails dated November 30, 2018 and
May 13, 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 VEPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on VEPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of VEPL continues to be 'CRISIL B/Stable Issuer not
cooperating'.
VEPL was set up in 2006 as a partnership firm by the Gujarat-based
Poddar family. The company exports dyed and printed fabric. It is
based in Mumbai.
WORLD GOLD: CRISIL Cuts INR20cr Loan Rating to B+, Not Coop.
------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of World Gold
Junction Private Limited (WGJPL) to 'CRISIL B+/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 20 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with WGJPL for obtaining
information through letters and emails dated
November 30, 2018 and May 13, 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 WGJPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on WGJPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of WGJPL revised to be 'CRISIL B+/Stable Issuer not
cooperating'.
WGJPL was established in 2012 by Mr Ankit Gosalia. The company,
based in Mumbai, manufactures and exports gold jewellery to the
Middle East.
=====================
N E W Z E A L A N D
=====================
BEALEY HOTEL: 'Iconic' Historic Coach Stop Closes Doors
-------------------------------------------------------
Brendon McMahon at Otago Daily Times reports that the Bealey Hotel,
a historic coach stop on the road to the West Coast since the
1860s, has shut the doors.
Debbie and Marshall Deaker, who have leased the premises for the
past 10 and a half years, have decided to call it quits and will
leave next month, the report says.
ODT relates that Mrs. Deaker said the Bealey had effectively closed
already.
The report notes that although the current hotel was only built in
the 1980s, after a gap of 20 years since the previous one burned
down, it continued a tradition dating back to the goldrush days.
It includes motel units, cabins, a lodge, and bar and restaurant
and was built 30 years ago by Irishman the late Paddy Freaney, who
courted international media at the time with his claims of having
sighted moa in the nearby bush.
The current hotel sits on the opposite side of the highway to the
historic Bealey Hotel, the last incarnation of which burned down in
1963.
According to the report, Mrs. Deaker said the owners for the past
five years, an Auckland family, were now doing overdue maintenance
on the buildings, and were apparently aiming to reopen it as a
luxury lodge.
"It's been really wonderful to find as the years have gone by we
have had many regulars. Although we are a hotel in the middle of
nowhere we would have upwards of 500 people who would call in on a
regular basis, so that's been really lovely," the report quotes
Mrs. Deaker as saying. Mrs Deaker could not comment on the
timeframe for the redevelopment. "What's actually going to happen
. . . hopefully it will be amazing when it re-opens."
The Bealey Hotel was "iconic" in Canterbury and well known
internationally, she said.
As a luxury lodge, though, its traditional role as a road house for
travellers caught out by the winter weather would end.
"It's a wonderful place. I really hope that it is still catering
for the average New Zealander and the average tourist."
PLAMAN RESOURCES: Has Total Debt of More Than NZ$33.6MM
-------------------------------------------------------
Simon Hartley at Otago Daily Times reports that failed would-be
diatomite miner Plaman Resources has total debt of more than
NZ$33.6 million, but appears to have at least NZ$17.8 million cash
in trust with a global law firm.
According to ODT, Plaman Resources' offshore Malaysian and Isle of
Man shareholders placed the mine developer in receivership and
liquidation last week, effectively quitting plans to develop a
diatomite mine near Middlemarch, in Otago.
While unable to secure more capital, the project was coming under
increasing pressure following disclosure of a confidential and
unflattering Goldman Sachs report, which prompted geologists and
the public to question destruction of the unique fossil hoard,
trapped in the diatomite layers and said to be destined for pig
food, ODT relates.
Investment bank Goldman Sachs lent its subsidiary NZ Commercial
Ventures US$20 million (NZ$30.6 million) in May last year, as a
bridging loan, repayable by May next year, ODT discloses.
On June 21, liquidator McGrathNicol released its first report,
showing total liabilities at NZ$33.6 million and assets of NZ$18.2
million, of which NZ$17.8 million was held by US law firm Norton
Rose Fullbright, in a trust account, according to ODT.
"The [Plaman] directors advise that as a result of previously
publicised delays in Overseas Investment Office consent, the
company was unable to acquire the adjacent [Foulden Hill farm]
land, nor complete the corporate reorganisation required to secure
new capital," the liquidator said, ODT relays.
Plaman's directors are Sydney businessmen George Manolas and Peter
Plakidis, ODT says. The secured creditors are NZ Commercial
Ventures and Royal Wolf, while trade creditors include the
respective family trusts of Mr Manolas and Mr Plakidis, also both
cited as creditor employees. No liquidation timetable was given,
ODT discloses.
As reported in the Troubled Company Reporter-Asia Pacific on June
21, 2019, Radio New Zealand said Plaman Resources, the company
behind a controversial mineral mine in inland Otago, has been
placed into voluntary receivership. According to RNZ, investment
firm KordaMentha has been appointed receiver to Plaman Resources,
which owns 42 hectares of land near Middlemarch, including the
scientifically significant Foulden Maar.
*********
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
to be reliable, but is not guaranteed.
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 ***