/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/191111.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, November 11, 2019, Vol. 22, No. 225 Headlines A U S T R A L I A CATTLETRANS PTY: Second Creditors' Meeting Set for Nov. 15 CONSTRUCTION VICTORIA: First Creditors' Meeting Set for Nov. 20 ELIZA HOLDINGS: First Creditors' Meeting Set for Nov. 18 INSELEC PTY: Second Creditors' Meeting Set for Nov. 18 MANSOUR PAVING: Second Creditors' Meeting Set for Nov. 15 MELROSE WHOLESALE: Remains in Administration with Debts Above AUD5M SFM TRUCKING: Second Creditors' Meeting Set for Nov. 15 SPAWN DEVELOPMENTS: Second Creditors' Meeting Set for Nov. 18 STAR AVIATION: Second Creditors' Meeting Set for Nov. 19 C H I N A GREENLAND HOLDING: Fitch Affirms BB- LT IDRs, Outlook Stable GUANGDONG NANYUE: Skips Early Capital Bond Payment in Rare Move REDSUN PROPERTIES: Moody's Assigns B2 CFR, Outlook Positive YANGO GROUP: Fitch Assigns $250MM Sr. Notes Final 'B' Rating I N D I A ALASKA CREATIONS: Insolvency Resolution Process Case Summary ANDHRA PRADESH: CRISIL Maintains B- Rating in Not Cooperating ANNAI INFRA: CRISIL Cuts Rating on INR50cr Loan to B-; Off RWN ANNAPURNA AGRO: CRISIL Withdraws B+ Rating on INR6.75cr Loan ARADHANA BUILDERS: CRISIL Migrates B+ Rating to Not Cooperating ASOKE TIMBER: Ind-Ra Moves BB LT Issuer Rating to Non-Cooperating BHAGWATI RAIL: Insolvency Resolution Process Case Summary FERTILIZERS AND CHEMICALS: Ind-Ra Assigns 'BB+' LT Issuer Rating FIROZE FABRICATORS: Ind-Ra Affirms 'B+' Long Term Issuer Rating FLOWLINE INSTRUMENTATION: Insolvency Resolution Case Summary GEE EMM: CRISIL Withdraws 'B' Rating on INR6cr Cash Loan GRANDEUR AGROTECH: CRISIL Migrates B+ Rating to Not Cooperating JAMSHRI RANJITSINGHJI: CRISIL Withdraws B+ Rating on INR12cr Loan JAYPEE INFRATECH: SC Gives 90-day Deadline to Complete Resolution KAMAL TEXTILE: CRISIL Migrates 'B' Rating to Not Cooperating KONARK INFRASTRUCTURE: CRISIL Keeps B- Rating in Not Cooperating MAHESHWARI MINING: CRISIL Maintains B+ Rating in Not Cooperating MARIA INTERNATIONAL: Ind-Ra Assigns 'B+' Long Term Issuer Rating OMEGA INFRABUILD: Insolvency Resolution Process Case Summary PARSHWA GLOBAL: CRISIL Hikes Rating on INR3cr Secured Loan to B PROACTIVE PLAST: Insolvency Resolution Process Case Summary RCI CASH MANAGEMENT: Insolvency Resolution Process Case Summary RENUKA CONSTRUCTIONS: CRISIL Assigns B+ Rating to INR20cr Loans SAHA'S SOLVEX: CRISIL Assigns 'B+' Rating to INR12.6r Cash Loan SRK FOOD PRODUCTS: Insolvency Resolution Process Case Summary TODAY HOMES: Insolvency Resolution Process Case Summary VIKRAM INFRASTRUCTURE: Ind-Ra Moves BB- Rating to Non-Cooperating VISHESH OVERSEAS: CRISIL Lowers Rating on INR16cr Loan to B+ YES BANK: Moody's Reviews Ba3 Issuer Rating for Downgrade [*] INDIA: Mulls NBFC Debt Resolution Under Insolvency Law M A L A Y S I A TASEK CORP: Net Loss Narrows to MYR5.37MM in Q3 Ended Sept. 30 S I N G A P O R E HOE LEONG: UOB Withdraws JM Application, Statutory Demands RYOBI KISO: PwC Seeks to Push Creditors' Meeting Deadline to 2020 - - - - - ================= A U S T R A L I A ================= CATTLETRANS PTY: Second Creditors' Meeting Set for Nov. 15 ---------------------------------------------------------- A second meeting of creditors in the proceedings of Cattletrans Pty. Ltd., trading as Robertson's Transport ATF The GW and YS Robertson Family Trust, has been set for Nov. 15, 2019, at 11:00 a.m. at The Heritage Room, Quest Toowoomba, at 133 Margaret Street, in Toowoomba, Queensland. 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 Nov. 14, 2019, at 4:00 p.m. Steve Naidenov and Vincent Pirina of Veritas Advisory were appointed as administrators of Cattletrans Pty on Oct. 14, 2019. CONSTRUCTION VICTORIA: First Creditors' Meeting Set for Nov. 20 --------------------------------------------------------------- A first meeting of the creditors in the proceedings of: - Construction Victoria Proprietary Limited (formerly known as Empire Constructions (Victoria) Pty Ltd); - Crete Services Proprietary Limited ATF Elite Crete Trust (formerly known as Elite Crete Placement Specialists Pty Ltd); - Nationwide Concrete Pumping (Qld) Pty Ltd; - Nationwide Concrete Pumping Victoria Pty. Ltd.; and - Titan Victoria Construction Pty Ltd will be held on Nov. 20, 2019, at 11:00 a.m. at the offices of Chartered Accountants Australia & New Zealand, Level 18, at 600 Bourke Street, in Melbourne, Victoria. Stephen Dixon and Leigh Dudman of Hamilton Murphy were appointed as administrators of Construction Victoria on Nov. 8, 2019. ELIZA HOLDINGS: First Creditors' Meeting Set for Nov. 18 -------------------------------------------------------- A first meeting of the creditors in the proceedings of Eliza Holdings Queenstown Pty Ltd will be held on Nov. 18, 2019, at 11:00 a.m. at the offices of BPS Reconstruction and Recovery, Level 5, Suite 6, at 350 Collins Street, in Melbourne, Victoria. Simon Patrick Nelson of BPS Reconstruction and Recovery was appointed as administrators of Eliza Holdings on Nov. 7, 2019. INSELEC PTY: Second Creditors' Meeting Set for Nov. 18 ------------------------------------------------------ A second meeting of creditors in the proceedings of Inselec Pty Ltd has been set for Nov. 18, 2019, at 11:00 a.m. at the offices of Hall Chadwick, Level 4, at 240 Queen Street, in Brisbane, Queensland. 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 Nov. 15, 2019, at 5:00 p.m. Brent Kijurina and Richard Albarran of Hall Chadwick were appointed as administrators of Inselec Pty on Oct. 14, 2019. MANSOUR PAVING: Second Creditors' Meeting Set for Nov. 15 --------------------------------------------------------- A second meeting of creditors in the proceedings of Mansour Paving (Aust) Pty Ltd has been set for Nov. 15, 2019, at 10:00 a.m. at the offices of Veritas Advisory, Level 5, at 123 Pitt Street, in Sydney, NSW. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Nov. 14, 2019, at 3:00 p.m. Steve Naidenov and Vincent Pirina of Veritas Advisory were appointed as administrators of Mansour Paving on Oct. 14, 2019. MELROSE WHOLESALE: Remains in Administration with Debts Above AUD5M ------------------------------------------------------------------- Jon Condon at Beef Central reports that a Queensland-based meat wholesale business remains in voluntary administration last week, after creditors expressed opposition to a Deed of Company Arrangement proposed during a meeting on Nov. 8. Melrose Wholesale Meats, headed by prominent industry identity Kerry Melrose, a former Australian Meat Industry Council national retail chairman, went into voluntary administration in August with debts totalling around AUD5.2 million. The business was primarily involved in trading premium Tasmanian lamb under the Tasmanian Royal brand into the Queensland food service and retail market. Much of the money owed was tied up with freight and livestock costs, the report says. Major creditors include Ruralco's Tasmanian agency arm, Roberts, understood to be owed almost AUD400,000, and about AUD200,000 owed to Fresh Freight, a Tasmanian company that shipped carcases to Queensland for the meat supplier, Beef Central discloses. Melrose Wholesale Meats principal Kerry Melrose told Beef Central that more than half of the debts owed were internal, to family members or personal friends. He said the primary reason for the business's failure was because the company's lamb supply channels out of Tasmania had disappeared, the report relays. According to Beef Central, the closure of JBS' Devonport abattoir meant the business could no longer supply Tasmanian Royal lamb, the company's flagship product, as alternative contract kills could not be found in Tasmania. The only other service kill lamb abattoir at Cressy was already killing for another Queensland wholesaler, and could not accommodate the Tasmanian Royal kill, Mr. Melrose said. "The Tasmanian government could have done more to keep us in business, to be quite honest," Mr. Melrose told Beef Central. A tightening meat industry also contributed to the company's financial position, notes the report. "When you're squeezed at both ends you run out of your ability to pay people . . . even though you want to," he said. Beef Central relates that Mr. Melrose said there were still matters to be resolved before any future plans could be considered, however the business would not continue in its previous form. He said the Tasmanian Royal brand remained a well-known and respected lamb brand in the Queensland market. He said that he and fellow investors had invested every cent they could into the business, and no funds had been extracted. Administrator Michael Caspaney from Menzies Advisory, said a Deed of Company Arrangement had been applied for at a creditors meeting last week, which was pending. Beef Central adds that a Deed of Company Arrangement (DOCA) is a binding arrangement between a company and its creditors governing how the company's affairs will be dealt with, which may be agreed to as a result of the company entering voluntary administration. "Basically it means the directors will put some money up, and that money will go towards paying secured creditors a compromised figure, rather than 100 cents in the dollar," Beef Central quotes Mr. Caspaney as saying. Unsecured creditors would receive nothing. The way a DOCA worked, once the arrangement is executed, and the monies distributed, the company is then handed back to the directors, Mr. Caspaney, as cited by Beef Central, said. However, he said he had been put on notice by several unrelated company creditors that they intended to challenge the Deed of Company Arrangement through the courts, Beef Central relays. He said there were provisions within the Corporations Act for such challenges, in the event where non-related parties could prove that the reason why the DOCA was resolved was because of support for the resolution by related parties. As a result, Mr. Caspaney said he had withheld executing the Deed of Company Arrangement on Melrose Wholesale Meats. There was a three-week statutory period for complainants to exercise their rights through the courts, the report notes. Michael Caspaney of Menzies Advisory was appointed as administrator of Melrose Wholesale on Aug. 22, 2019. SFM TRUCKING: Second Creditors' Meeting Set for Nov. 15 ------------------------------------------------------- A second meeting of creditors in the proceedings of SFM Trucking Pty Ltd has been set for Nov. 15, 2019, at 11:00 a.m. at Suite 203, at 517 Flinders Lane, in Melbourne, Victoria. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Nov. 14, 2019, at 5:00 p.m. Trajan John Kukulovski and Liam William Bellamy of Chan & Naylor were appointed as administrators of SFM Trucking on Oct. 10, 2019. SPAWN DEVELOPMENTS: Second Creditors' Meeting Set for Nov. 18 ------------------------------------------------------------- A second meeting of creditors in the proceedings of Spawn Developments Pty Ltd has been set for Nov. 18, 2019, at 12:00 p.m. at Suite 203, at 517 Flinders Lane, in Melbourne, Victoria. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Nov. 15, 2019, at 5:00 p.m. Trajan John Kukulovski and Liam William Bellamy were appointed as administrators of Spawn Developments on Oct. 15, 2019. STAR AVIATION: Second Creditors' Meeting Set for Nov. 19 -------------------------------------------------------- A second meeting of creditors in the proceedings of Star Aviation Services Pty Ltd has been set for Nov. 19, 2019, at 3:00 p.m. at the offices of RSM Australia Partners, Equinox Building 4, Level 2, at 70 Kent Street, in Deakin, ACT. 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 Nov. 18, 2019, at 4:00 p.m. Jonathon Kingsley Colbran and Frank Lo Pilato of RSM Australia Partners were appointed as administrators of Star Aviation on Oct. 16, 2019. ========= C H I N A ========= GREENLAND HOLDING: Fitch Affirms BB- LT IDRs, Outlook Stable ------------------------------------------------------------ Fitch Ratings affirmed China-based homebuilder Greenland Holding Group Company Limited's Long-Term Foreign- and Local-Currency Issuer Default Ratings at 'BB-' with a Stable Outlook. The company's ratings reflect its size as one of the top-10 property developers in China by contracted sales and positive cash flows, although its high leverage continues to constrain the ratings. Greenland's net leverage, measured by net debt to adjusted inventory, rose to 70% in 1H19 from 55% in 2018 due to an equity investment in and a shareholder loan to Bund Financial Center, a large commercial project in Dongjiadu, in the Shanghai Bund Area, as well as the settlement of third-party short-term payables. The company's sales collection reached 79% in 1H19 compared with 77% in 2018 and 80% in 2017. Greenland had large positive cash flow from operations of CNY33.1 billion in 2018 and CNY41.5 billion in 2017 as it aggressively cut land acquisitions in both years. Fitch expects Greenland's leverage to gradually reduce to below 65% in 2019 and to 59%-61% in 2020-2021. Management indicated that the company will use more than 25% of its collected sales proceeds to replenish land to maintain its business scale. Greenland is rated based on its Standalone Credit Profile under Fitch's Government-Related Entities Rating Criteria. KEY RATING DRIVERS Leverage Constrains Rating: Greenland's leverage rose after it purchased a 50% equity stake in the Bund Financial Center from CM Investments in 2018 when the company was in distress, with Anxin Trust and an investment vehicle of its parent, Shanghai Huangpu District's State-owned Assets Supervision and Administration Commission (SASAC), holding 45% and 5%, respectively. Greenland invested CNY19 billion, including the 50% stake and the shareholder loan, although Fitch calculated that 50% of the project debt and guarantee amounted to more than CNY15 billion. Fitch has not consolidated the assets and liabilities into Greenland's financial profile as Shanghai Huangpu District's SASAC has the veto vote on the project. Fitch does not expect Greenland to make additional significant investments in the Dongjiadu project, but the company's leverage remains one of the highest among its 'BB' category rated peers. This is despite its expectations Greenland's leverage will fall below 60% in 2020 from 65% in 2019 due to better sales collection and land acquisition discipline, which will improve CFO. Fitch estimates Greenland's trade payables for the property segment are approximately three months of its contracted sales, which does not offer any mitigation for the high leverage. Continuous Positive CFO: Fitch believes Greenland will generate positive CFO in 2019, which will help in deleveraging. The strong CFO in 2017-2018 was driven by its healthy cash collection rate of 77%-80%, and controlled land acquisition. Its land acquisitions fell to CNY46 billion-82 billion in 2017-2018, representing 19%-27% of sales collection, while the land cost stayed at CNY2,000-3,000 per sq metre. Greenland spent CNY46 billion on buying land in 1H19, or 35% of collected sales. Fitch believes Greenland will slow the pace of land acquisition in 2H19, in line with other developers, and Fitch expects the company to spend 26%-29% of collected sales to replenish its land bank in 2019-2021. Large Business Scale: Greenland's property-development business is well diversified in over 80 cities in China and overseas, with 40% of contracted sales generated from third- and fourth-tier Chinese cities and 35% from commercial properties. Fitch expects Greenland's contracted sales growth to slow to 6.1% in 2020 to CNY420 billion from CNY396 billion in 2019 after a gain of over 26% in 2018 to more than CNY387 billion from CNY306 billion in 2017 due to China's economic slowdown and the authorities' tightening measures to curb property prices and demand. Fitch also expects Greenland to have higher sales contribution from residential properties and tier 1-2 cities. Weak Impact of Non-Property Businesses: The combined gross profit contribution of Greenland's non-property-related businesses, including construction, remained low, at around 15% in 2018 (10% in 2017) and their EBITDA contribution was lower, in the high single digits. These businesses do not generate sufficient operating cash to service Greenland's interest, with the ratio of non-development EBITDA to interest paid likely to stay at 0.3x in 2019-2021 (0.2x-0.3x in 2017-2018). Rated on Standalone Credit Profile: Greenland is assessed to have a support score of 10 under Fitch's GRE criteria. This scoring falls into the lowest category under its notching guidelines and implies only a standalone profile with no further notching for support from its parent, the Shanghai SASAC. The score reflects its assessment of the company's status, ownership and control, record of support from the parent and the financial implications of a default as moderate, and the socio-political implications of a default as weak. DERIVATION SUMMARY Greenland's rating is supported by its business profile, including its scale, measured by contracted sales and EBITDA, and its market position. However, its rating is constrained by higher leverage than most of its 'BB', 'BB-' and 'B+' rated peers. Greenland's large-scale peers include China Evergrande Group (B+/Stable) and Sunac China Holdings Limited (BB/Stable), which are similarly aggressive in expanding their scale, and are among the five largest Chinese homebuilders. Greenland's leverage is higher than that of Evergrande and Sunac, which Fitch expects to be 40%-50%, but Greenland has a large amount of uncollected sales to mitigate its high leverage. Its payables for the homebuilding business are also not as large as those for Evergrande. Greenland, as a GRE with a solid record in mixed-development projects, has a stronger position in acquiring land at low costs, especially for new city districts that local governments are keen to develop. This factor enhances Greenland's business profile over that of Evergrande and Sunac. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer - Gross floor area (GFA) sold to increase by 11% in 2019 and slow to 1%-3% in 2020-2022 - Land acquisitions by GFA at 1.2x contracted sales GFA in 2019 and 1.1x-1.2x in 2020-2022 - Cash collection rate to stay at 80% in 2019-2022 - EBITDA margin for all business segments to remain largely stable in 2019-2021. RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action - Net debt/adjusted inventory sustained below 50% - Evidence of a stronger linkage between the government and the company, or an increase in the incentive for the parent to support the company, may result in upward notching being considered Developments That May, Individually or Collectively, Lead to Negative Rating Action - Net debt/adjusted inventory sustained above 65% - Property EBITDA margin sustained below 18% LIQUIDITY AND DEBT STRUCTURE Adequate Liquidity: Greenland had available cash of CNY74 billion in 1H19 (CNY74 billion in 2018), which was insufficient to cover its short-term debt of CNY94 billion (CNY99 billion in 2018). However, the company had CNY159 billion of available bank facilities as of June 2019 and has the ability to raise funds through multiple channels domestically. SUMMARY OF FINANCIAL ADJUSTMENTS - CNY2 billion in perpetual securities treated as debt. - Capitalised interest in cost of sales adjusted to increase EBITDA; similar adjustment made to inventory changes to increase funds from operations. - Land appreciation tax removed from operating expenses and added to income-tax expenses - Guarantees to joint ventures and associates added as debt. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of 3 - ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. GUANGDONG NANYUE: Skips Early Capital Bond Payment in Rare Move --------------------------------------------------------------- Bloomberg News reports that Guangdong Nanyue Bank Co, a small Chinese lender, made a rare decision to skip early redemption on its local tier-two bond, sparking fresh concern on the country's smaller lenders as non-performing loans rise amid an economic slowdown. Guangdong Nanyue, based in the coastal province in Southeast China, said it won't exercise an early redemption on its CNY1.5 billion ($215 million) 6% tier-two bond next month, Bloomberg relates citing a filing on Nov. 7 on the China Bond website. It didn't give a reason for its move. The 10-year note, sold in 2014, gives the issuer the right to redeem the bond in full at the end of the fifth year, according to its bond prospectus, Bloomberg relates. "Given that most banks make early redemption on such securities, its (Nanyue Bank) not exercising the option will hurt investors' confidence toward the bank," Bloomberg quotes Zhiming Liao, an analyst at Tianfeng Securities Co., as saying. Liao said it would also make it uncertain whether the notes will be repaid on time at maturity, while increasing investor caution over such notes by other small lenders, Bloomberg relates. According to Bloomberg, China's banks, particularly the smaller ones, are facing a challenging outlook as efforts to boost growth and help struggling small businesses threaten to lower margins and increase soured debt. Chinese banks reported CNY2.2 trillion of non-performing loans at the end of June, the highest in at least 15 years, according to the China Banking and Insurance Regulatory Commission, Bloomberg discloses. Troubles facing Guangdong Nanyue's biggest shareholders may also add to its woes, Bloomberg notes. Neoglory Holding Group Co., which is going through a court-led bankruptcy restructuring after defaulting on its bonds, is the largest shareholder of Guangdong Nanyue with a 16.52% stake, followed by Gionee Communication Equipment Co., which is in liquidation, Bloomberg discloses citing a report published by China Lianhe Credit Rating in June. The two hold a combined 25.4% stake in the lender, it said. Bloomberg says investors have kept a close watch over China's smaller banks after the unexpected government takeover of Baoshang Bank Co. in May, which imposed losses on some creditors. In September, Bank of Jinzhou Co., which was the subject of a government-orchestrated rescue in July, announced that it's seeking shareholder approval to halt dividends on its offshore preference shares for the year through Oct. 26, Bloomberg recalls. That's after its capital adequacy ratios failed to meet regulatory requirements. Chinese authorities are considering a sweeping package of measures to shore up smaller lenders, escalating efforts to contain one of the biggest risks facing the world's largest banking system, people familiar with the matter had said, Bloomberg relays. As of the end of 2018, Nanyue Bank's capital-adequacy ratio, a key measure of financial strength, was at 11.57%, above the 10.5% regulatory minimum for China's non-systemically important banks, Lianhe said in the report in June, adds Bloomberg. Guangdong Nanyue Bank Co., Ltd operates banking businesses. The Company offers public deposits, commercial loans, settlement, notes discounting, financial consulting, credit guarantee, and other banking services. Guangdong Nanyue Bank provides services for enterprises and individuals. REDSUN PROPERTIES: Moody's Assigns B2 CFR, Outlook Positive ----------------------------------------------------------- Moody's Investors Service assigned a first-time B2 corporate family rating to Redsun Properties Group Limited. The outlook is positive. RATINGS RATIONALE "Redsun's B2 CFR reflects the company's long track record of developing properties in Jiangsu Province, its quality land bank, as well as its strong sales execution. The rating also considers the recurring income streams generated from its investment properties, which improve the stability of its debt servicing," says Cedric Lai, a Moody's Vice President and Senior Analyst. Redsun, a Jiangsu-based property developer, has a long operating history that spans over 20 years in the province, and has established its brand and track record there. The company has a solid market position in the Jiangsu province, which has a strong economy with steady property demand. Jiangsu province contributed around 81% of the company's contracted sales in the first half of 2019. In addition to its strong presence in the Jiangsu province, Redsun has been broadening its geographic coverage to other regions over the last two years, including Central China and Western China. The company has generated strong contracted sales growth over the past two years, with 40% year-on-year gross contracted sales growth to RMB43.8 billion in the first nine months of 2019, and 84% year-on-year growth to RMB47.3 billion in 2018. Moody's expects that Redsun's gross contracted sales will continue to grow at an annual rate of 25%-30% to reach around RMB75 billion-RMB80 billion by 2020. Additionally, Moody's expects Redsun's rental income will grow 25%-40% annually to around RMB450 million-RMB500 million over the next 12-18 months from RMB359 million in 2018. As a result, Redsun's adjusted rental income/interest coverage will stabilize at around 15%-20% over the next 12-18 months from 19% for the 12 months ended June 2019. "On the other hand, the B2 CFR is constrained by Redsun's developing funding channels, moderate credit metrics, and high exposure to joint-venture businesses, which in turn lowers the transparency of its credit metrics," adds Lai, who is also Moody's Lead Analyst for Redsun. Redsun has limited funding sources, and primarily relies on onshore bank loans and offshore bonds. However, the company has been proactively diversifying its funding channels. Redsun's credit metrics are moderate, but Moody's expects the company's debt leverage — as measured by revenue to adjusted debt (including adjustments for its shares in joint ventures and associates) — will improve to 60%-65% over the next 12-18 months from 44% for the 12 months ended June 2019, on the back of increased revenue recognition from strong contracted sales over the past two years. Similarly, Redsun's interest coverage — as measured by adjusted EBIT to interest (including adjustments for its shares in joint ventures and associates) -- should strengthen to 2.0x-2.5x from 2.2x over the same period. These projected ratios position the company's CFR strongly at the B2 rating level considering its business profile. Redsun's liquidity is adequate. Specifically, the company's RMB16.9 billion in cash as of June 30, 2019 could cover 125% of its short-term debt of RMB13.5 billion. Moody's expects that the company's cash holdings, together with its operating cash flow, will be sufficient to cover its short-term debt and committed land payments over the next 12 months. The positive outlook reflects Moody's expectation that Redsun will (1) continue its strong contracted sales growth; (2) strengthen its credit metrics over the next 12-18 months; and (3) improve its access to both offshore and onshore funding channels. Redsun's ratings could be upgraded if the company improves its debt leverage and funding channels, while maintaining its strong contracted sales growth. Credit metrics indicative of a potential upgrade include (1) revenue/adjusted debt rising above 60%-65%; (2) adjusted EBIT/interest rising above 2.25x; and (3) cash/short-term debt rising above 1.25x, all on a sustained basis. A downgrade is unlikely in the near term, given the positive outlook on Redsun's rating. However, the rating outlook could be revised to stable if the company fails to improve its credit metrics or maintain adequate liquidity over the next 12-18 months. In terms of environmental, social and governance (ESG) factors, Moody's has taken into account the concentrated ownership by Redsun's key shareholder, Mr. Zeng Huansha, who held a 72% direct and indirect stake in Redsun as of June 30, 2019. Moody's has also considered (1) the presence of three independent non-executive directors (INED) on Redsun's eight-member board of directors, (2) the fact that the INEDs also chair both the audit and remuneration committees; and (3) the presence of other internal governance structures and standards, as required under the Corporate Governance Code for companies listed on the Hong Kong Stock Exchange. The principal methodology used in this rating was Homebuilding And Property Development Industry published in January 2018. YANGO GROUP: Fitch Assigns $250MM Sr. Notes Final 'B' Rating ------------------------------------------------------------ Fitch Ratings assigned Yango Group Co., Ltd.'s (B+/Stable) USD250 million 10% senior notes due 2023 a final rating of 'B' and a Recovery Rating of 'RR5'. The notes are issued by its subsidiary, Yango Justice International Limited, and guaranteed by Yango. The notes are rated at the same level as Yango's senior unsecured rating because they constitute its direct and senior unsecured obligations. Yango intends to use the net proceeds from the US dollar senior notes mainly to refinance its existing debt. The assignment of the final rating follows the receipt of documents conforming to information already received. The final rating is in line with the expected rating assigned on November 3, 2019. The one-notch difference between Yango's senior unsecured rating and its Long-Term Issuer Default Rating reflects the subordination of its unsecured debt to secured debt. Secured debt accounted for 68% of Yango's total borrowings as of end-September 2019, and was equivalent to around 80% of Fitch-estimated liquidation value. KEY RATING DRIVERS Falling Leverage Record: Yango was successful in deleveraging in 2018 and 1H19 from a peak in 2017, fulfilling management's commitment. Its leverage, measured by net debt/adjusted inventory, including guarantees provided to and net assets of joint ventures and associates, improved to 67.8% in 2018 and dropped further to 63.8% in 1H19, after the company cut back on land acquisitions. Yango spent only 46% of sales receipts on an attributable basis for land acquisition in 2018, compared with 80% in 2016 and above 100% in 2017. Fitch believes the company can consistently deleverage towards 55% over the next three years based on its current controlled land-acquisition pace, and keep land acquisitions at 45%-50% of annual sales receipts - a level that would maintain a three-year land bank and support sustainable business development. Fitch also thinks Yango's milder appetite for growth will lower its risks as growth prospects in the industry become more challenging and ease the pressure to acquire land, helping the company cut its leverage. Yango is targeting moderate total contracted sales growth of 10% yoy from 2019, slowing from 80%-90% yoy over 2017-2018. Business Scale Supports Ratings: Fitch estimates the company will maintain an attributable sales scale of above CNY110 billion in 2019 (2018: CNY118 billion). Yango's business scale is larger than that of most 'BB' rating-category issuers and is a key business profile strength that gives it diversification benefits. The company had strong sales momentum in 9M19, achieving CNY96 billion on an attributable basis, or 82% of its full-year target of CN117 billion. Yango's well-located saleable resources, mainly in strategic second-tier cities, are sufficient for the company to fulfil its 2019 target. Quality, Diversified Land Bank: Yango had 44 million square metres (sq m) in total land bank (attributable: 28.7 million sq m) at end-June 2019, supporting property sales for around three years. The company's land bank is nationwide, with about 20% of land bank by saleable value in tier 1 cities and more than 60% in tier 2 cities across major economic zones. Yango plans to continue focusing on core tier 2 and strong tier 3 cities, where Fitch thinks demand is still resilient and would support mild sales growth for the company. Healthy Margin: Yango's EBITDA margin, after adding back capitalised interest in cost of goods sold, was healthy at 29% in 1H19 (2018: 28%). Yango had CNY76.6 billion in unrecognised revenue as of end-June 2019 with an estimated gross profit margin of 27%, which will support its margin for the coming year. Average land-bank cost was low at CNY3,576/sq m at end-1H19, accounting for 28% of estimated average selling prices. Fitch expects its EBITDA margin to be maintained above 25% in the next one to three years, helped by Yango's multipronged land-acquisition strategy to keep its land cost low. Improvement in Debt Structure: Yango has optimised its debt structure, with short-term debt dropping to 27% of total debt by end-September 2019, from 40% at end-2017 and end-2018. The company is also replacing non-bank financing with bank loans in a tightening funding environment, with non-bank financing decreasing to 31% of total debt by end-1H19, from 53% at end-2018. Fitch believes the improvement in the debt structure reflects better access to financing that gives the company greater financial flexibility, as the funding environment for homebuilders remains challenging. DERIVATION SUMMARY Yango's diversified nationwide portfolio and large scale are comparable with those of 'BB' rated Chinese homebuilders, such as CIFI Holdings (Group) Co. Ltd. (BB/Stable) and stronger than those of 'BB-' rated peers, which have contracted sales of CNY40 billion-60 billion, including Yuzhou Properties Company Limited (BB-/Stable). In addition, half of Yango's land bank is located in tier 1 and core tier 2 cities, which Fitch believes have resilient demand to cushion against the impact of a homebuilding-sector slowdown, compared with lower-tier cities. However, Yango's higher leverage has constrained its rating at 'B+'. The company has taken measures to consistently reduce leverage over the last two years, but it remains higher than that of 'B+' rated peers, whose leverage is between 40% and 50%, such as Zhenro Properties Group Limited (B+/Stable). KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer - Attributable contracted sales of CNY110 billion-130 billion during 2019-2021 - Land premium accounting for 45%-50% of sales receipts per year during 2019-2021 - Construction expenditure accounting for 25%-30% of sales receipts per year during 2019-2021 - Cash collection rate at 80% (2018 and 1H19: 80%) RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action - Net debt/adjusted inventory sustained below 50% - EBITDA margin sustained above 25% - Attributable contracted sales/gross debt sustained above 1.2x Developments That May, Individually or Collectively, Lead to Negative Rating Action - Net debt/adjusted inventory above 65% for a sustained period - EBITDA margin below 20% for a sustained period LIQUIDITY Improved Liquidity Profile: Yango's liquidity position has improved due to a better debt structure. Unrestricted cash on hand was CNY38.6 billion at end-September 2019, which can more than cover short-term debt of CNY32.5 billion. Its cash/short-term debt coverage ratio improved to 1.2x, from 0.7x-0.8x at end-2017 and end-2018. ========= I N D I A ========= ALASKA CREATIONS: Insolvency Resolution Process Case Summary ------------------------------------------------------------ Debtor: Alaska Creations Private Limited Hiralal Building, Ground Floor Pitha Cross Lane, Fort Mumbai 400001 Insolvency Commencement Date: October 12, 2019 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: April 9, 2020 Insolvency professional: Mrs. Preeti Vimal Agrawal Interim Resolution Professional: Mrs. Preeti Vimal Agrawal Office No. 11-12, Krishna Kunj Above HDFC Bank Ltd. Near East-West Flyover Bhandar West, Thane 401101 Maharashtra E-mail: capreeti2003@gmail.com Last date for submission of claims: October 26, 2019 ANDHRA PRADESH: CRISIL Maintains B- Rating in Not Cooperating ------------------------------------------------------------- CRISIL said the ratings on bank facilities of Andhra Pradesh Power Development Company Limited (APPDCL) continue to be 'CRISIL B-/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 900 CRISIL B-/Stable (ISSUER NOT COOPERATING) Proposed Fund- 600 CRISIL B-/Stable (ISSUER NOT Based Bank Limits COOPERATING) CRISIL has been consistently following up with APPDCL for obtaining information through letters and emails dated July 31, 2019 and September 23, 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 APPDCL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on APPDCL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of APPDCL continues to be 'CRISIL B-/Stable Issuer not cooperating'. APPDCL is a special-purpose vehicle which was originally set up as a 50:50 joint venture between Andhra Pradesh Power Generation Corporation Ltd (APGenco) and Infrastructure Leasing & Financial Services Ltd, to implement mega power projects. Subsequently, the company was reconstituted, with APGenco holding 51 percent stake and the balance 49 percent being held by the four discoms of erstwhile Andhra Pradesh (together holding 45.04 percent) and the Government of Andhra Pradesh (3.96 percent). APPDCL runs a thermal power project, Sri Damodaram Sanjeevaiah Thermal Power Station, in Krishnapatnam, Andhra Pradesh. The project has three units of 800 MW each. While Unit I commenced commercial operations on February 5, 2015, and Unit II on August 24, 2015, the construction of Unit III commence in the current fiscal and is expected to become operational by June 2019. ANNAI INFRA: CRISIL Cuts Rating on INR50cr Loan to B-; Off RWN -------------------------------------------------------------- CRISIL has removed its ratings on the bank facilities of Annai Infra Developers Limited (AIDL) from 'Rating Watch with Negative Implications', and has downgraded the ratings to 'CRISIL B-/CRISIL A4' from 'CRISIL BB/CRISIL A4+', and placed the long-term rating on 'Negative' outlook. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 156 CRISIL A4 (Downgraded from 'CRISIL A4+' Removed from 'Rating Watch with Negative Implications') Cash Credit 50 CRISIL B-/Negative (Downgraded from 'CRISIL BB' Removed from 'Rating Watch with Negative Implications') Letter of Credit 10 CRISIL A4 (Downgraded from 'CRISIL A4+' Removed from 'Rating Watch with Negative Implications') Overdraft 14 CRISIL B-/Negative (Downgraded from 'CRISIL BB' Removed from 'Rating Watch with Negative Implications') The rating action follows CRISIL's belief that company's liquidity will remain under pressure over the medium term due to ongoing investigations and judicial custody of the promoter, leading to the company's inability to secure funding for its day-to-day operational activities. CRISIL also believes that the company's operating performance will continue to remain under pressure, as its ability to execute in-hand orders and source new orders will remain severely impacted due to the arrest of the promoter. The company's issues are only aggravated by fund restrictions in place by the lenders. CRISIL had placed the rating on 'Rating Watch with Negative Implications' on October 18, 2019 following the arrest of the promoter and major shareholder, Mr S Ashok Kumar by the Directorate General of GST Intelligence in relation to the Goods and Services Tax fraud worth INR450 crore as on October 17, 2019. The ratings continue to reflect AIDPL's working capital intensive operations and geographic concentration risk in revenues. These weaknesses are partially mitigated by the company's long presence in civil construction segment in Tamil Nadu. Key Rating Drivers & Detailed Description Weakness: * Geographic concentration risk in revenue: Revenue is almost entirely derived from Tamil Nadu and Kerala, leading to geographic concentration risk in revenue. Any decline in the economic scenario or changes in political scenario in these states is likely to constrain operating performance. * Working-capital-intensive operations: Operations are working capital intensive, with gross current assets of 190 days as on March 31, 2019, due to high debtors (127 days), inventory (80 days). Typically, credit of 90 days is extended to customers. However, customers are governmental departments, so debtors are slightly stretched. The company receives a credit period of around 90 days from suppliers and sub-contractors. Strength: * Long presence in the civil construction segment in Tamil Nadu: The company has a long presence in the civil construction segment in Tamil Nadu, especially in undertaking works related to water supply projects. Liquidity: Stretched Liquidity is expected to remain stretched owing to judicial custody of the promoter, and ongoing investigations into the fraud. Consequently, ability to secure funding to execute ongoing orders may be restricted. Additionally, with fund restrictions in place by the lenders, the company's day-to-day operational activities are severely hampered. Ability to secure the necessary funding remains key sensitivity factors. Outlook: Negative CRISIL believes AIDL's liquidity will remain constrained owing to its ability to secure necessary funding to execute the in-hand orders. Rating Sensitivity Factors: Upward factor * Improvement and sustenance of operating profitability over 12% with steady growth in revenue * Improvement in working capital management Downward factor * Stretch in working capital cycle, with gross current assets rising to over 250 days * Slowdown in order book growth and its execution due to judicial custody of the promoter, Mr S Ashok Kumar Established in 2008, AIDPL is an Erode-based Class 1 civil contractor. The company primarily undertakes projects related to water supply, irrigation, and drainage. Day-to-day operations are managed by Mr S Ashok Kumar. ANNAPURNA AGRO: CRISIL Withdraws B+ Rating on INR6.75cr Loan ------------------------------------------------------------ CRISIL has withdrawn its ratings on the bank facilities of Annapurna Agro Industries LLP (AAIL) on the request of the company and receipt of a no objection certificate from its bank. The rating action is in line with CRISIL's policy on withdrawal of its ratings on bank loans. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6.4 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Withdrawn) Term Loan 6.75 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Withdrawn) CRISIL has been consistently following up with AAIL for obtaining information through letters and emails dated March 30, 2019 and September 17, 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 they are arrived at without any management interaction and are 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 AAIL. This restricts CRISIL's ability to take a forward AAIL 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 AAIL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. CRISIL has withdrawn its ratings on the bank facilities of AAIL on the request of the company and receipt of a no objection certificate from its bank. The rating action is in line with CRISIL's policy on withdrawal of its ratings on bank loans. Incorporated on July 29, 2016, as a partnership firm and promoted by Mr Bhuneshwar Tiwari, AAIL has set up a 60,000 tonne per annum rice milling unit in Mirzapur, Uttar Pradesh. ARADHANA BUILDERS: CRISIL Migrates B+ Rating to Not Cooperating --------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Aradhana Builders Private Limited (ABPL) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Drop Line 4.5 CRISIL B+/Stable (ISSUER NOT Overdraft COOPERATING; Rating Migrated) Facility Proposed Term Loan 5.5 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Term Loan 10.0 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with ABPL for obtaining information through letters and emails dated October 11, 2019 and October 16, 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 ABPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on ABPL is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of ABPL to 'CRISIL B+/Stable Issuer not cooperating'. ABPL is Uttarakhand based real estate development private company incorporated in 1993. The company develops residential and commercial properties in Dehradun. Day to day operations are managed by Mr Ashok Kumar Agarwal. ASOKE TIMBER: Ind-Ra Moves BB LT Issuer Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Asoke Timber Co's (ATC) Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR160 mil. Fund-based working capital limits migrated to non- cooperating category with IND BB (ISSUER NOT COOPERATING) rating; and -- INR50 mil. Non-fund-based limits migrated to non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on January 17, 2019. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Set up in 1975, ATC is trades timber, veneer, plywood, marble, granites and tiles. BHAGWATI RAIL: Insolvency Resolution Process Case Summary --------------------------------------------------------- Debtor: Bhagwati Rail Infra Private Limited 27, MLB Market Khanderao Gate Jhansi UP 284002 IN Insolvency Commencement Date: October 21, 2019 Court: National Company Law Tribunal, Allahabad Bench Estimated date of closure of insolvency resolution process: April 20, 2020 Insolvency professional: Mr. Aditya Agrawal Interim Resolution Professional: Mr. Aditya Agrawal 3A/105 Azad Nagar Kanpur 208002 E-mail: caaditya65@gmail.com ipadityaagarwal65@gmail.com Last date for submission of claims: November 6, 2019 FERTILIZERS AND CHEMICALS: Ind-Ra Assigns 'BB+' LT Issuer Rating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Fertilizers and Chemicals Travancore Limited (FACT) a Long-Term Issuer Rating of 'IND BB+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR6.825 mil. Fund-based working capital limit assigned with IND BB+/Stable/IND A4+ rating; and -- INR4.471 mil. Non-fund-based working capital limit assigned with IND BB+/Stable/IND A4+ rating. Analytical Approach: Ind-Ra has factored in financial support from FACT's parent Government of India (GoI; 90% stake) from time-to-time while assigning the ratings. KEY RATING DRIVERS Volatile Operating Performance, Although Likely to Improve in FY20: The company witnessed volatility in EBITDA over the last three to four years owing to operational challenges such as i) low operating efficiencies as compared to other nitrogen-phosphate-potash-sulfur (NPKS) fertilizer players, ii) shortage of working capital funds and high cost of raw materials such as imported regasified liquefied natural gas (RLNG), iii) vintage of the plants which require constant upgrades, and iv) external factors like monsoon and floods. While the revenue increased 1.6% YoY to INR19.6 billion in FY19, the EBITDA declined to INR0.09 billion (FY18: INR1.7 billion) and EBITDA margin to 0.5% (8.6%). The company derived more than 90% of its revenue during FY17-FY19 from the sale of two key products namely factamfos and ammonium sulfate (AS). Higher raw material costs including that of imported RLNG leading to ammonia manufacturing plant being shut down and flooding of the Udyogamandal plant for two months impacted the profitability during FY19. In 1QFY20, FACT's revenue improved marginally to INR3.5 billion (1QFY19: INR3.4 billion) and the EBITDA loss declined to INR0.1 billion (INR0.2 billion) due to restart of the ammonia plant beginning May 2019, leading to lower fixed cost than last year. Ind-Ra expects the company's overall operational efficiency and EBITDA margin to improve in FY20 owing to i) the commencement of operations of ammonia plant post tie-up for RLNG supply for FY20 and for other raw materials, ii) improvement in capacity utilization leading to better absorption of fixed costs, iii) CAPEX for improvement in operating efficiencies, and iv) cash inflow of INR9.7 billion from sale of land leading to improvement in working capital position and higher EBITDA. However, the operating margins would continue to depend on RLNG price fluctuations, timeliness of subsidy disbursements, monsoons, forex fluctuations, and policy environment. Liquidity Indicator - Stretched: At FYE19, FACT's cash and cash equivalents stood at INR0.01 billion (FYE18: INR0.04 billion). Its cash flow from operations decreased to INR0.3 billion in FY19 (FY18: INR1.4 billion), primarily owing to an increase in inventory levels at the end of the year. Of the total term debt of INR17.9 billion, INR17.7 billion is from the GoI, which along with interest is repayable in three or more equated installments within a period of five years ending 2022. FACT average use of its INR6.8 billion fund-based and INR4.5 billion non-fund-based sanctioned working capital limits was 63% and 86%, respectively, for 12 months ended October 2019. The company's working capital cycle elongated to 200 days in FY19 (FY18: 164 days) owing to higher inventory. FACT has a scheduled term debt repayment of INR0.05 billion during FY20-FY21. Furthermore, it has a high cost of banking finance owing to negative net worth and limited access to capital markets. However, being a GoI entity, it has received support from the GoI from time-to-time to continue its operations. Ind-Ra expects the company's liquidity profile to improve in the short term, led by cash inflows from the sale of land, although dependent on the timeliness of the finalization of the restructuring package; timeliness of subsidy receivables from the GoI and its ability to stabilize its operations. Weak Credit Metrics: FACT's credit metrics are weak owing to high debt levels and low EBITDA or EBITDA losses. Also, continued profit after-tax losses over several years up to FY18 have resulted in the erosion of its net worth. During FY19, FACT's net adjusted leverage (net debt/EBITDA adjusted for subsidy receivables) stood high at 187x (FY18: 11x) and interest cover (EBITDA/gross interest expense) remained low at 0.03x (0.5x), due to a decrease in EBITDA to INR0.09 billion (INR1.7 billion). Ind-Ra expects the credit metrics to improve in FY20-FY21 on account of the likely inflow of funds from sale of land, cash flow generation driven by an improved working capital cycle and improved subsidy disbursement from the GoI. Government Support and Financial Restructuring Key to Improve Net Worth: FACT's net worth is negative owing to accumulated losses. However, it has received need-based support from the GoI in the past including the INR10 billion term loan received in FY16 as a part of financial restructuring package to continue its manufacturing operations. Further, the GoI allowed the company to monetize various land parcels by way of which it has received INR4.5 billion in FY19 and is likely to receive another INR9.7 billion in 3QFY20. In addition, the company has been discussing financial restructuring with the GoI, under which it has requested the GoI to i) waive off the outstanding interest dues of INR9.66 billion, ii) convert the old GoI loan of INR2.83 billion into equity, and iii) convert the INR10 billion GoI loan into interest-free loan repayable in 10 yearly installments beginning FY23. Ind-Ra believes with the approval for sale of land and use of sale proceeds, the company's operational and financial position would improve in the short-to-medium term. However, a positive outcome of the restructuring package is important for the required improvement in FACT's net worth and thus remains a key monitorable. Planned Capex to Improve Stability of Operations: FACT has planned to implement essential capital jobs to enhance its reliability of production plants and compliance with changing statutory requirements in addition to investments in critical renovation and modernizing schemes for debottlenecking raw material and product handling facilities. It has also planned to install a new 1,000 tons per day factamfos plant at its Cochin division to improve capacity. Further, it plans to restart its Caparolactam plant by May 2020. The company has planned capex of INR8 billion-9 billion during FY20-FY22, which would be funded primarily from proceeds from sale of land and internal accruals. While the planned capex would improve the stability of operations, additional debt taken, if any, to fund this capex could lead to a delay in improvement in the credit metrics. Strong Brand Name in South India: FACT has a strong brand recall of its key product factamfos in southern India with 62% market share of NPKS fertilizers sold in Kerala and 7.6% share of NPKS sold in India during FY19. The company operates two manufacturing plants in Udyogamandal and Cochin and produced 0.63 million metric tons of factamfos (100% of capacity) during FY19. It has access to more than 6,250 dealers across southern India. RATING SENSITIVITIES Positive: Favorable outcome of the debt restructuring coupled with a sustained improvement in operating efficiency, leading to an improvement in EBITDA and credit metrics on a sustained basis, may lead to positive rating action. Negative: Any deterioration in the operating performance and/or liquidity position, along with any larger-than-expected debt-funded capex and/or any weakening of support from the GoI, leading to a further decline in the credit metrics would be negative for the ratings. COMPANY PROFILE Established in 1943, FACT began commercial production of AS in 1947 in Udyogamandal. Presently, it has an installed capacity of 0.63 million metric tons of factamfos (20:20:0:13) and 0.23 million metric tons of AS. FACT became a Kerala State Public Sector Enterprise on 15 August 1960 with the GoI becoming the major shareholder on 21 November 1962. It set up a 50,000 tons per annum caprolactam plant at Udyogamandal in 1990. The Cochin division was set up in 1973. FIROZE FABRICATORS: Ind-Ra Affirms 'B+' Long Term Issuer Rating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Firoze Fabricators' (FF) Long-Term Issuer Rating at 'IND B+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR50 mil. Fund-based working capital limit affirmed with IND B+/Stable/IND A4 rating; and -- INR16 mil. Non-fund-based working capital limit affirmed with IND A4 rating. KEY RATING DRIVERS The affirmation reflects FF's continued small scale of operations as revenue declined to INR182 million, according to the provisional financials for FY19 (FY18: INR188.5 million), due to weak order book position. The firm achieved revenue of INR75 million in 2QFY20. The ratings continue to be constrained by FF's weak credit metrics. Interest coverage (operating EBITDA/gross interest expense) improved slightly to 2x in FY19 (FY18: 1.7x) on a marginal fall in interest expenses and net leverage (adjusted net debt/operating EBITDAR) deteriorated to 3.6x (1.4x) due to an increase in the total debt to INR45.6 million from INR16.4 million. The ratings are also constrained by FF's moderate net cash conversion cycle that elongated to 96 days in FY19 (FY18: 48 days) due to an increase in debtors days to 111 (76) as a major customer delayed payments. Liquidity Indicator – Poor: FF's average use of working capital limits was 54% during the 12 months ended in September 2019. The cash flow from operations turned negative at INR18.0 million in FY19 (FY18: INR20.2 million) due to the elongated working capital cycle. Cash and cash equivalents remained low at INR1.1 million at FYE19 (FYE18: INR0.2 million). However, FF's EBITDA margins were healthy at 6.7% in FY19 (FY18: 6%) due to an improvement in absolute EBITDA to INR12.3 million from INR11.3 million. The return on capital employed stood at 17% in FY19 (FY18: 17%). The ratings continue to be supported by the firm's partners' around five decades of experience in the fabrication industry and in the erection of mechanical and engineering equipment. RATING SENSITIVITIES Positive: A rise in the revenue and operating profitability, leading to an improvement in the credit metrics, all on a sustained basis, will lead to positive rating action. Negative: A decline in the revenue or operating profitability, leading to gross interest coverage below 1.1x, on a sustained basis, could be negative for the ratings. COMPANY PROFILE FF was established in 1964 as a partnership firm and started commercial operations from 1974. It is engaged in the fabrication business and the erection of mechanical and engineering equipment. It undertakes to fabricate contracts for all kinds of mild steel, stainless steel, copper and aluminum fabrication, supplying of boilers components pressure parts vessels and non-pressure parts and erection of heavy machinery and equipment to various process industries. FLOWLINE INSTRUMENTATION: Insolvency Resolution Case Summary ------------------------------------------------------------ Debtor: Flowline Instrumentation Private Limited No.A-291, II Stage Peenya Industrial Estate Bengaluru, Karnataka 560058 Insolvency Commencement Date: October 23, 2019 Court: National Company Law Tribunal, Bengaluru Bench Estimated date of closure of insolvency resolution process: April 20, 2020 (180 days from commencement) Insolvency professional: Hari Babu Thota Interim Resolution Professional: Hari Babu Thota No. 9, 9th Main 2nd Block, Jayanagar Bengaluru 560011 Mobile: +91 9740237291 080-26579977 E-mail: csharibabuthota@gmail.com flowlinecirp@gmail.com Last date for submission of claims: November 11, 2019 GEE EMM: CRISIL Withdraws 'B' Rating on INR6cr Cash Loan -------------------------------------------------------- CRISIL has withdrawn its rating on the bank facilities of Gee Emm Overseas (GEO; part of the Gee group) on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL's policy on withdrawal of its rating on bank loan facilities. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Withdrawn) Inventory 2.35 CRISIL B/Stable (ISSUER NOT Funding Facility COOPERATING; Rating Withdrawn) Term Loan 1.65 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Withdrawn) CRISIL has been consistently following up with GEO for obtaining information through letters and emails dated May 31, 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 GEO. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for GEO is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower. Based on the last available information, CRISIL has Continues the ratings on the bank facilities of GEO to 'CRISIL B/Stable Issuer not cooperating'. CRISIL has withdrawn its rating on the bank facilities of GEO on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL's policy on withdrawal of its rating on bank loan facilities. For arriving at the rating, CRISIL has combined the business and financial risk profiles of GEO and Gee Agrotech (GGA). This is because the two entities, together referred to as the Gee group, are in the same line of business and have common promoters and management. GEO was set up as a partnership firm in 2010 by the Goyal family, which has been in the rice-milling industry since 1998. The firm processes basmati and parboiled rice at its facility in Moga (Punjab). Its operations are managed by Mr. Naresh Goyal and his son Mr. Manav Goyal. Established in 2005, GGA mills and processes rice (including basmati rice), and undertakes milling work for the Government of Punjab. Its production facilities are in Moga and have capacity of 10 tonne per hour. The firm is owned and managed by Mr. Manav Goyal and his family. GRANDEUR AGROTECH: CRISIL Migrates B+ Rating to Not Cooperating --------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Grandeur Agrotech Private Limited (GAPL) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Term Loan 0.25 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with GAPL for obtaining information through letters and emails dated October 22, 2019 and October 26, 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 GAPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on GAPL is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of GAPL to 'CRISIL B+/Stable Issuer not cooperating'. GAPL was set up in 2005, by the promoters, Mr. Anupam Bansal, Ms. Ritu Bansal, and Ms. Manju Bhandari. The company processes and packages frozen peas under its brand, Green Valley. The processing plant at Rudrapur, Uttarakhand, has capacity of 7500 tonnes per annum. JAMSHRI RANJITSINGHJI: CRISIL Withdraws B+ Rating on INR12cr Loan ----------------------------------------------------------------- CRISIL has withdrawn its ratings on the bank facilities of The Jamshri Ranjitsinghji Spinning And Weaving Mills Company Limited (Jamshri) on the request of the company and receipt of a no objection certificate from its bank. The rating action is in line with CRISIL's policy on withdrawal of its ratings on bank loans. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 12 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Withdrawn) CRISIL has been consistently following up with Jamshri for obtaining information through letters and emails dated August 9, 2019 and August 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 they are arrived at without any management interaction and are 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 Jamshri. This restricts CRISIL's ability to take a forward Jamshri is consistent with 'Scenario 4' outlined in the 'Framework for Assessing Consistency of Information'. Based on the last available information, the rating on bank facilities of Jamshri continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. CRISIL has withdrawn its ratings on the bank facilities of Jamshri on the request of the company and receipt of a no objection certificate from its bank. The rating action is in line with CRISIL's policy on withdrawal of its ratings on bank loans. Jamshri, incorporated in 1907 was taken over by the Damani Family in 1955. The company is currently managed by Mr. P.R. Damani and his son, Mr. Rajesh Damani. The company is engaged in spinning of blended yarn at its manufacturing unit in Sholapur, Maharashtra. The company is listed on the Bombay Stock Exchange. JAYPEE INFRATECH: SC Gives 90-day Deadline to Complete Resolution ----------------------------------------------------------------- Ishita Guha at LiveMint.com reports that the Supreme Court on Nov. 6 said the resolution process of Jaypee Infratech Ltd should be completed within 90 days, and barred parent Jaypee Associates Ltd from bidding for the Noida-based real estate developer. LiveMint.com relates that the apex court has also directed that only state-owned blue chip company NBCC (India) Ltd and Suraksha Realty Ltd can bid for Jaypee Infratech. Adani Group, which had reportedly made an offer of INR1,700 crore to complete the held-up housing projects of Jaypee Infra, is also out of the race for the realty firm, the report says. According to the report, the case was first admitted to the National Company Law Tribunal (NCLT) for bankruptcy proceedings in August 2017 after state-owned IDBI Bank had filed an application on behalf of the lenders. Even after more than two years of admission, the case is unresolved as proceedings following a plea by homebuyers in September 2017 in the SC to include their voting rights in the bidding procedure took nearly a year to complete, LiveMint.com relates. LiveMint.com says the court had ruled in favor of the homebuyers, allowing them to participate as financial creditors and directing the insolvency process to start afresh. Jaypee Infratech was part of the list of 12 large defaulting corporate accounts identified by the Reserve Bank of India in June 2017 for immediate insolvency action, LiveMint.com discloses. Lenders had requested excluding the 250 days from Sept. 17, 2018 to June 4, 2019 from the stipulated period for corporate insolvency resolution process (CIRP), as this time was taken by the NCLT to decide on the voting rights of the homebuyers. Given the delay in resolution of several large corporate accounts, the government had in July extended the deadline to complete insolvency procedure within 330 days from the earlier 270 days, starting from the day a case is admitted to the NCLT. About Jaypee Infratech Jaypee Infratech Limited (JIL) is engaged in the real estate development. The Company's business segments include Yamuna Expressway Project and Healthcare. The Company's Yamuna Expressway Project is an integrated project, which inter alia includes construction of 165 kilometers long six lane access controlled expressway from Noida to Agra with provision for expansion to eight lane with service roads and associated structures on build, own, operate and transfer basis. The Company provides operation and maintenance of Yamuna Expressway for over 36 years, collection of toll and the rights for development of approximately 25 million square meters of land for residential, commercial, institutional, amusement and industrial purposes at over five land parcels along the expressway. The Healthcare business segment includes hospitals. The Company has commenced development of its Land Parcel-1 at Noida, Land Parcel-3 at Mirzapur and Land Parcel-5 at Agra. On Aug. 8, 2017, the National Company Law Tribunal (NCLT), Allahabad bench accepted lender IDBI Bank's plea and classified JIL as an insolvent company. With this, the board of directors of the company remains suspended. Anuj Jain was appointed as Interim Resolution Professional (IRP) to manage the company's business. The IRP had invited bids from investors interested in acquiring JIL and completing the stuck real estate projects in Noida and Greater Noida. In September 2017, the Supreme Court of India stayed the insolvency proceedings initiated against JIL, after various associations of homebuyers moved a batch of petitions fearing they will lose their apartments and not get any compensation, according to Livemint. The stay was later revoked by the court, which directed the resolution professional to submit an interim resolution plan that takes into account the interest of homebuyers. The court also directed the parent company, Jaiprakash Associates Ltd. (JAL), to deposit INR2,000 crore to protect the interest of homebuyers. Out of this, only INR750 crore has been deposited so far, Livemint relayed. JIL features in the Reserve Bank of India's first list of non-performing assets accounts and had debt exposure of over INR9,783 crore as of September 2017. The parent company, JAL owes more than INR29,000 crore to various banks, the report added. KAMAL TEXTILE: CRISIL Migrates 'B' Rating to Not Cooperating ------------------------------------------------------------ CRISIL has migrated the rating on bank facilities of Kamal Textile Industries (KTI) to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee .4 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Cash Credit .5 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) Long Term Loan 5.6 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with KTI for obtaining information through letters and emails dated October 22, 2019 and October 26, 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 KTI, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on KTI is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of KTI to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Incorporated in 2016, Ahmedabad-based KTI undertakes job work for weaving fabrics. Operations commenced in August 2017, and are managed by Mr Abhay Kothari. KONARK INFRASTRUCTURE: CRISIL Keeps B- Rating in Not Cooperating ---------------------------------------------------------------- CRISIL said the ratings on bank facilities of Konark Infrastructure Limited (KIL) continue to be 'CRISIL B-/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 152.5 CRISIL A4 (ISSUER NOT COOPERATING) Cash Credit 90.73 CRISIL B-/Stable (ISSUER NOT COOPERATING) Overdraft 3 CRISIL B-/Stable (ISSUER NOT COOPERATING) Term Loan 85 CRISIL B-/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with KIL for obtaining information through letters and emails dated April 30, 2019 and September 25, 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 KIL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on KIL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of KIL continues to be 'CRISIL B-/Stable/CRISIL A4 Issuer not cooperating'. Set up in 1997 by Mr Mahesh Khairari, Mr Nandlal Jethani, Mr Suresh Jagiasi, and Mr Mukesh Kimtani, KIL primarily collects toll on behalf of government and private agencies, and executes EPC projects, mainly for government agencies. For fiscal 2015, KIL, on a provisional basis, reported net profit of INR2 crore on net sales of INR304 crore; it had reported a net loss of INR12 crore on net sales of INR986.2 crore the previous fiscal. MAHESHWARI MINING: CRISIL Maintains B+ Rating in Not Cooperating ---------------------------------------------------------------- CRISIL said the ratings on bank facilities of Maheshwari Mining Private Limited (MMPL) continue to be 'CRISIL B+/FB+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 32 CRISIL A4 (ISSUER NOT COOPERATING) Cash Credit 19 CRISIL B+/Stable (ISSUER NOT COOPERATING) Letter of Credit 3 CRISIL A4 (ISSUER NOT COOPERATING) CRISIL has been consistently following up with MMPL for obtaining information through letters and emails dated April 23, 2019 and September 23, 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 MMPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on MMPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of MMPL continues to be 'CRISIL B+/FB+/Stable/CRISIL A4 Issuer not cooperating'. MMPL, based in Burdwan, West Bengal, is engaged in drilling and exploration activities, mine development, and underground mining of various metals. It was incorporated in 1994, as Mecons Consulting Pvt Ltd, which initially supplied fly-ash bricks. The company was renamed as Maheshwari Entrepreneurs Pvt Ltd in 2002, and commenced mining operations in 2003, the name was changed to MMPL. MARIA INTERNATIONAL: Ind-Ra Assigns 'B+' Long Term Issuer Rating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Maria International (MI) a Long-Term Issuer Rating of 'IND B+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR100.00 mil. Fund-based working capital limit assigned with IND B+/Stable/IND A4 rating; and -- INR50.00 mil. Non-fund-based working capital limit assigned with IND A4 rating. KEY RATING DRIVERS The ratings reflect MI's small scale of operations, as indicated by revenue of INR575.31 million in FY19 (FY18: INR521.03 million). The modest revenue growth was driven by higher exports on increased demand. FY19 financials are provisional in nature. The rating also factors in MI's average EBITDA margins of 6.79% in FY19 (FY18: 5.20%) due to a marginal decrease in raw material cost along with a decrease in selling and administrative expenses. The return on capital employed stood at 13.03% in FY19 (FY18: 12%). The rating is also constrained by the firm's weak credit metrics. Gross interest coverage (operating EBITDAR/gross interest expense + rents) improved to 2.49x in FY19 (FY18: 2.18x) due to improvement in the absolute EBITDA to INR39.06 million (FY18: INR27.09 million) while net leverage (adjusted net debt/operating EBITDAR) deteriorated to 5.02x (4.85x) owing to increase in debt level for FY19. Liquidity Indicator- Poor: The ratings also reflect MI's tight liquidity position, indicated by 94.89% average usage of maximum fund-based working capital limit for the 12 months ended September 2019. MI's cash flow from operations remained negative at INR33.31 million in FY19 (FY18: negative INR38.76 million) on the back of changes in the working capital cycle. Further, cash and cash equivalent improved to INR6.80 million at FYE19 from INR2.37 million in FYE18. The ratings, however, are supported by MI's net cash cycle of negative 35 days in FY19 (FY18: negative 17 days) due to higher creditor days in FY19 to 134 days (FY18: 128 days). The ratings are further supported by the partners' three decades of experience in the leather industry along with strong relationships with customers and suppliers. RATING SENSITIVITIES Negative: A significant decline in the revenue and/or EBITDA margin leading to further deterioration in the credit metrics along with deterioration in the liquidity position could lead to negative rating action. Positive: Any increase in the scale of operations and EBITDA margin, along with an improvement in the credit profile and liquidity position (10% cushion in the fund-based limits utilization), could lead to positive rating action. COMPANY PROFILE MI was established in 2010 by Mr. Sheezan Akhthar, Mohammed Arif and Mohammed Abid as partners. It manufactures and exports harness and saddle; shoe and boot upper; leather goods to Europe, Middle East, and the Far East. The firm is based in Kanpur, Uttar Pradesh. OMEGA INFRABUILD: Insolvency Resolution Process Case Summary ------------------------------------------------------------ Debtor: M/s. Omega Infrabuild Private Limited Registered office as per MCA Records: C-1/64, New Ashok Nagar Delhi East, Delhi 110096 Registered office as per NCLT order: C-22, East End Apartments Mayur Vihar, Phase-1 Extension, New Delhi 110096 Insolvency Commencement Date: October 17, 2019 Court: National Company Law Tribunal, New Delhi, Court No. IV Bench Estimated date of closure of insolvency resolution process: April 27, 2020 (180 days from commencement) Insolvency professional: Rajesh Kumar Gupta Interim Resolution Professional: Rajesh Kumar Gupta F-43, Dilshad Colony East Delhi 110095 E-mail: rgadv21@gmail.com - and - G-22, Lower Ground Floor Jangpura Extension New Delhi 110014 E-mail: omega.cirp@gmail.com Classes of creditors: Real Estate Investors Insolvency Professionals Representative of Creditors in a class: Mr. Gautam Singhal C-35, Ground Floor Vivek Vihar, Phase-I Delhi 110095 E-mail: gautam@klfindia.com Mr. Atul Tandon 66, Shreshtha Vihar Delhi 110092 E-mail: atultandon2002@gmail.com Mr. Rajesh Jangra ED-15C, Pitampura, North Opposite Rohini Court Complex Delhi 110034 E-mail: jangraadvocate@gmail.com Last date for submission of claims: November 13, 2019 PARSHWA GLOBAL: CRISIL Hikes Rating on INR3cr Secured Loan to B --------------------------------------------------------------- CRISIL has upgraded its ratings on the long-term bank facilities of Parshwa Global (PG) to 'CRISIL B/Stable' from 'CRISIL B-/Stable' and reaffirmed its short-term rating at 'CRISIL A4'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Packing Credit 2 CRISIL A4 (Reaffirmed) Post Shipment Credit 2 CRISIL A4 (Reaffirmed) Proposed Long Term 1 CRISIL B/Stable (Upgraded Bank Loan Facility from 'CRISIL B-/Stable') Secured Overdraft 3 CRISIL B/Stable (Upgraded Facility from 'CRISIL B-/Stable') The upgrade factors in the firm's sustained growth in business performance and strengthening of its financial risk profile. Revenue expected to grow by 10% to INR9 crore in fiscal 2020 along with operating margin in range of 3.8-4.5% in last three years ended fiscal 2019. The financial risk profile has remain average with lower reliance on external borrowing, leading to TOL/ANW of 2.02 times as on March 31, 2019 and adequate debt protection metrics. The ratings continue to reflect the firm's modest scale of operations in the highly fragmented rice trading business, its large working capital requirement, and below-average financial risk profile. These weaknesses are partially offset by the experience of the partners. Analytical Approach CRISIL has treated the firm's unsecured loan as neither debt nor equity as it is from the partners, has lower interest than the market rate, and is expected to remain in the business over the medium term. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations The firm's modest scale, reflected in estimated operating income of INR8.05 crore in fiscal 2019, in a highly fragmented industry renders the business susceptible to intense competition. * Below-average financial risk profile The financial risk profile is constrained by subdued interest coverage of 1.03 times in fiscal 2019 and high total outside liabilities to adjusted networth (TOLANW) ratio of 2.02 times as on March 31, 2019. * Large working capital requirement The large working capital requirement is indicated by estimated gross current assets of 164 days as on March 31, 2019. Operations will remain working capital intensive over the medium term due to large receivables of 111 days. Strength * Experience of the partners The partners' experience of over five years, their strong understanding of the local market dynamics, and healthy relationships with customers and suppliers should continue to support the business. Liquidity Stretched Liquidity is Stretched, with Cash accrual expected over INR0.02 crore against nil term debt repayment over the medium term. Furthermore, utilisation of bank limit averaged 69% in the 12 months through September 2019. Outlook: Stable CRISIL believes PG will continue to benefit from the experience of its partners. Rating sensitivity factors Upward factors * Improvement in TOLANW to below 2.00 times * Significant improvement in the business risk profile with sustained operating margin Downward factors * TOLANW ratio deteriorating to 3.0-3.5 times * Steep decline in the operating margin PG was set up in 2011 at Nadiad as a partnership firm by Mr Chetan Shah. The firm trades in rice and cashews. PROACTIVE PLAST: Insolvency Resolution Process Case Summary ----------------------------------------------------------- Debtor: Proactive Plast Private Limited W-66, Ground Floor Right Side Greater Kailash-II New Delhi East Delhi DL 110019 IN Insolvency Commencement Date: October 14, 2019 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: April 10, 2020 Insolvency professional: Rakesh Kumar Jain Interim Resolution Professional: Rakesh Kumar Jain 1203/81, 1st Floor Shanti Nagar, Tri-Nagar New Delhi 110035 E-mail: rakeshjainca@rediffmail.com - and - 1670/120, Shanti Nagar Tri-Nagar, Delhi 110035 E-mail: iprakeshJ1@gmail.com Last date for submission of claims: November 13, 2019 RCI CASH MANAGEMENT: Insolvency Resolution Process Case Summary --------------------------------------------------------------- Debtor: RCI Cash Management Services Private Limited RCI House, 1st Floor, Survey No. 83 Near Kompally Railway Bridge Kompally, Secunderabad Telangana 500014 Insolvency Commencement Date: September 27, 2019 Court: National Company Law Tribunal, Hyderabad Bench Estimated date of closure of insolvency resolution process: March 25, 2020 (180 days from commencement) Insolvency professional: Dr. K Lakshmi Narasimha, Ph.D Interim Resolution Professional: Dr. K Lakshmi Narasimha, Ph.D H.No. 16-11-20/13 Saleem Nagar-2 Opp Tahsildar Office/Revenue Bhavan Malakpet, Hyderabad 500036 Telangana State: India E-mail: ipdrkln17@gmail.com Last date for submission of claims: November 7, 2019 RENUKA CONSTRUCTIONS: CRISIL Assigns B+ Rating to INR20cr Loans --------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of Renuka Constructions - Pune (RC). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Project Loan 18 CRISIL B+/Stable (Assigned) Proposed Long Term Bank Loan Facility 2 CRISIL B+/Stable (Assigned) The rating reflects exposure to project implementation and funding risks and to cyclicality in the real estate industry. These weaknesses are partially offset by the extensive industry experience of the proprietor. Key Rating Drivers & Detailed Description Weaknesses * Exposure to moderate project implementation related risks: RC is currently setting up a residential project, Renuka Gloriya, in Ravet,Pune (Maharashtra). The project is about 20% complete with 49 flats (10.3% of total saleable units) having been booked. Further the advances received from customers are low and hence overall there is high exposure to implementation and funding related risks for the project. Substantial improvement in booking progress and timely receipt of advances will remain key rating sensitivity factors. * Susceptibility to cyclicality in the real estate industry: The domestic real estate segment is cyclical, has opaque transactions, and is intensely competitive because of many regional players. Strength * Extensive industry experience of the proprietor: The proprietor has an experience of over a decade in the real estate business. He is also likely to extend funding support. Liquidity: Stretched Liquidity is constrained by low customer advances till September 2019 and large funding requirement because of considerable pending construction cost to be incurred. Any delay in sale of flats or realisation of customer advances due to a sharp slowdown in the real estate sector can adversely affect liquidity. Outlook: Stable CRISIL believes RC will continue to benefit from the extensive experience of the proprietor. Rating sensitivity factor Upward factor * Higher-than-expected booking (more than 25% in a year) along with significant inflow of advances * Improvement in the capital structure Downward factor * Lower-than-expected bookings (less than 10% a year) and consequent delay in project implementation * Deterioration in the financial risk profile. RC is a proprietorship firm started by Mr. Mhehetre Babu and engaged in real estate development (residential and commercial). Currently the firm is undertaking projects 2 in Pimpri - Chinchwad and Ravet area. SAHA'S SOLVEX: CRISIL Assigns 'B+' Rating to INR12.6r Cash Loan --------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Saha's Solvex (SS). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 9.2 CRISIL B+/Stable (Assigned) Bank Guarantee 1 CRISIL A4 (Assigned) Cash Credit 12.6 CRISIL B+/Stable (Assigned) The ratings reflect SS's susceptibility to intense competition in the edible oil industry and modest scale of operations. These weaknesses are partially offset by the extensive experience of the promoters. Key Rating Drivers & Detailed Description Weaknesses * Susceptibility to intense competition in edible oil industry: The edible oil industry is driven by the presence of a few big players and several small, unorganised players. About 60% of the edible oil industry is serviced by the unorganised sector. These players primarily cater to regional demand in order to save on transportation cost. Intense competition has resulted in low margin. Furthermore, prices of edible oils are directly linked to those of crude palm oil (CPO), which has remained highly volatile; the domestic vegetable oil market depends on the availability of CPO and vegetable oil substitutes in the international market. * Modest scale of operations: SS's scale is modest, as operations began in July 2019. Hence, ramp-up of scale will be a key monitorable over the medium term. Strength Extensive experience of the promoters: Benefits from the two-decade-long experience of the promoters in the agro industry, their strong understanding of the market dynamics, and healthy relationships with suppliers and customers should continue to support the business. Liquidity: Stretched Bank limit utilisation averaged 18% over the five months through September 2019. Cash accrual should be tightly matched against the debt repayment obligation over the medium term. Liquidity is further supported by equity and unsecured loans provided by the promoters. Outlook: Stable CRISIL believes SS will continue to benefit from the promoters' extensive experience and healthy relationships with clients. Rating sensitivity factors Upward factor * Scale-up of operations leading to accrual of around INR2 crore * Efficient working capital management, with gross current assets below 150 days Downward factor * Significantly low cash accrual during the initial phase of operations * Substantial increase in the working capital requirement weakening liquidity and the financial risk profile Established in 2017, SS has set up a facility for manufacturing of rice bran oil. Production began from July 2019. SRK FOOD PRODUCTS: Insolvency Resolution Process Case Summary ------------------------------------------------------------- Debtor: M/s SRK Food Products Private Limited H.No. 17-1-391/T/250 Saraswati Nagar, Saidabad Hyderabad 500059 Insolvency Commencement Date: September 25, 2019 Court: National Company Law Tribunal, Hyderabad Bench Estimated date of closure of insolvency resolution process: March 23, 2020 Insolvency professional: Prabhakar Rao Kammula Interim Resolution Professional: Prabhakar Rao Kammula 39-4-1, S5 Koduru Enclave Picchaiah Street Labbipet, Vijayawada 520010 Krishna District Andhra Pradesh E-mail: ip.srkfoods@gmail.com Mobile: 9848124608 - and - 301, 3rd Floor, Bhavya's Fantastika D.No. 82-684/A, Road No. 12 Banjara Hills Hyderabad 500034 Telangana State E-mail: ip.srkfoods@gmail.com Last date for submission of claims: October 9, 2019 TODAY HOMES: Insolvency Resolution Process Case Summary ------------------------------------------------------- Debtor: Today Homes and Infrastructure Private Limited UGF 8-9, Pragati Tower Rajendra Place New Delhi 110008 Insolvency Commencement Date: October 31, 2019 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: April 28, 2020 (180 days from commencement) Insolvency professional: Mr. Deepak Bansal Interim Resolution Professional: Mr. Deepak Bansal E-102/2 DDA Flats Naraina Vihar New Delhi 110028 E-mail: csdeepakbansal@gmail.com deepakbansal.irptodayhomes gmail.com Classes of creditors: Real Estate Allottees/Home Buyers Insolvency Professionals Representative of Creditors in a class: Mr. Kamlesh Kumar Gupta E-mail: abomcx@yahoo.com Mr. Mahesh Taneja E-mail: maheshtaneja111@yahoo.in Mr. Anil Rustgi E-mail: anil_rustgi@yahoo.co.in Last date for submission of claims: November 14, 2019 VIKRAM INFRASTRUCTURE: Ind-Ra Moves BB- Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Vikram Infrastructure Company's (VIC) Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR150 mil. Fund-based limits migrated to non-cooperating category with IND BB- (ISSUER NOT COOPERATING) rating; and -- INR100 mil. Non-fund-based limits migrated to non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on October 24, 2018. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE VIC is a partnership firm established in 1989. It has three main areas of business namely infrastructure (civil construction), mining, and ready-mix concrete. VISHESH OVERSEAS: CRISIL Lowers Rating on INR16cr Loan to B+ ------------------------------------------------------------ CRISIL has downgraded its ratings on the bank facilities of Vishesh Overseas (VO) to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL BB-/Stable/CRISIL A4+'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Export Packing 16 CRISIL B+/Stable (Downgraded Credit & Export from 'CRISIL BB-/Stable') Bills Negotiation/ Foreign Bill discounting Letter of credit 1 CRISIL A4 (Downgraded from & Bank Guarantee 'CRISIL A4+') Proposed Fund- 3 CRISIL B+/Stable (Downgraded Based Bank Limits from 'CRISIL BB-/Stable') The downgrade reflects continuous deterioration in operating income because of intense competition from global and other domestic garment manufacturers. Turnover reduced to INR20 crore in fiscal 2019 from INR30 crore three fiscals ago. Negative operating margin in fiscal 2018 and foreign exchange loss in fiscal 2019 led to negative cash profit in both fiscals, thereby weakening debt protection metrics: interest coverage ratio was -0.06 time and 1.39 times in fiscals 2018 and 2019, respectively. Networth declined to INR8.52 crore as on March 31, 2019, from INR10.68 crore as of March 2017 due to steady losses. However, gearing remained below 1.5 times and total outside liabilities to tangible networth ratio was around 2 times, as on March 31, 2019. The ratings reflect VO's modest scale of operations, large working capital requirement, and weak financial risk profile driven by weak debt protection metrics. These weaknesses are partially offset by the extensive experience of promoters in the ready-made garments industry. Key Rating Drivers & Detailed Description Weaknesses: * Modest scale of operations in intensely competitive industry: The firm reported de-growth of 8% in revenue in fiscal 2019, and scale was small at INR21 crore. This restricts VO from taking advantage of benefits of economies of scale. * Large working capital requirement: Gross current assets were 328 days as on March 31, 2019, because of large inventory of 201 days (though partially order-backed) and stretched receivables of 106 days. * Weak debt protection metrics: Net cash accrual to adjusted debt and interest coverage ratios were -0.07 time and 1.39 times, respectively, in fiscal 2019 due to low profitability. Strengths: * Promoters' extensive experience and established customer relationship: Presence of over three decades in the ready-made garments industry has enabled the promoters to gain sound understanding of market dynamics and establish healthy relationship with customers such as Debenhams UK and DMC USA. The firm has also been associated with its suppliers for over 12 years. Liquidity: Stretched Cash accrual is likely to be modest at INR60-70 lakh per annum over the medium term. However, the firm has nil debt obligation. Bank limit utilisation averaged 62% over the 12 months ended September 2019. Liquidity is further supported by need-based funds from promoters. Current ratio was moderate at 1.23 times as on March 2019. Outlook: Stable CRISIL believes VO will continue to benefit from the extensive experience of its promoters. Rating sensitivity factors Upward factor * Significant and sustained improvement in revenue to above 30 crore, and sustenance of operating margin of 8% * Stronger financial risk profile Downward factor * Significant capital withdrawal constraining liquidity * Further stretch in working capital cycle Established in 1981 in Gurugram as a partnership firm by Mr Rajiv Prem and Mr Adil Prem, VO manufactures and exports ready-made garments for women and children. YES BANK: Moody's Reviews Ba3 Issuer Rating for Downgrade --------------------------------------------------------- Moody's Investors Service placed Yes Bank Limited's foreign currency issuer rating of Ba3 under review for downgrade. Moody's has also placed the bank's long-term foreign and local currency bank deposit ratings of Ba3, foreign currency senior unsecured MTN program rating of (P)Ba3, and Baseline Credit Assessment and adjusted BCA of b1, long-term Counterparty Risk Assessment of Ba2(cr) and long-term domestic and foreign currency counterparty risk rating of Ba2 under review for downgrade. For Yes Bank, IFSC Banking Unit Branch, Moody's has placed the foreign currency senior unsecured MTN program rating of (P)Ba3, senior unsecured debt rating of Ba3, long-term CR Assessment of Ba2(cr), and long-term domestic and foreign currency CRR of Ba2 under review for downgrade. In addition, Moody's has affirmed the bank's short-term foreign and local currency bank deposit rating of NP, short-term CR Assessment of NP(cr), and short-term domestic and foreign currency CRR of NP. For the IFSC Banking Branch, Moody's has also affirmed the short-term CR Assessment of NP(cr) and short-term domestic and foreign currency CRR of NP. RATINGS RATIONALE The review for downgrade is driven by two factors: (1) Yes Bank's weak financial performance in the quarter ended September 30, 2019, which was disclosed on November 01, and (2) the announcement by the bank on October 31, 2019 that it had received a binding offer from a financial investor to invest up to $1.2 billion via new equity capital into the bank. Moody's says that the bank's weakening financial position can be somewhat offset by the planned capital raise. Nevertheless, Moody's notes that there are significant execution risks around the timing, price and regulatory approvals required. During the review period, Moody's will focus on the bank's ability to raise new equity capital. An inability to raise the planned equity capital will negatively impact Yes Bank's credit profile and ratings. The bank has publicly disclosed that the binding offer is valid until November 30, 2019. In the quarter ended September 30, 2019, Yes Bank's asset quality substantially deteriorated, with the gross nonperforming loan (NPL) ratio rising to 7.6% at the end of the quarter from 3.2% at the end of March 2019. As of the same date, about INR314 billion of loans and investments (about 10.4% of Yes Bank's total loans and investments) were rated below investment grade under the domestic rating scale. Moody's expects about 30-40% of these loans and investments to turn into NPLs in the next few quarters. Taking into account the reported NPLs, management's expectation of further stress from the below investment grade rated exposures and other stressed assets--such as net standard restructured loans and net security receipts--Moody's estimates that Yes Bank's total pool of stressed assets registered about 12% of loans and investments as of September 30, 2019. Adding risk to asset quality is the increased pace of corporate downgrades from the bank's portfolio of investment grade to sub-investment grade rated companies. In addition, the ongoing liquidity pressures on Indian finance companies and the commercial real estate sector can further erode Yes Bank asset quality, given the bank's sizeable exposure to weaker companies in the sector. At the end of September 2019, Yes Bank's exposure to Indian housing finance companies and non-bank finance companies represented 6.0% of its total exposure to the property sector. As of the same date, the bank also had a 7.2% direct exposure to the commercial and residential real estate sector. Yes Bank's loss absorbing buffers against stressed assets is weak. At September 30, 2019, on a pro forma basis, the bank's loan-loss coverage (including general provisions for standard assets) against potential stressed loans and NPLs registered about 30-35%, which was weak when compared with the loan given default experience of Indian banks. The bank has also taken some mark to market losses on investments that were downgraded. Aided by the new equity capital raise in August 2019, Yes Bank's capitalization has somewhat improved. The bank's common equity tier 1 (CET1) ratio improved to 8.7% at the end of September 2019 from 8.0% at the end of June 2019. The planned $1.2 billion equity capital raise, if its materializes, will significantly improve the bank's CET1 ratio by about 270 basis points to 11.4%. However, Moody's expects that a large part of the new capital will be used for provisioning for the stressed assets. In the review for downgrade, Moody will also focus on the developments in the bank's funding and liquidity. In particular, Yes Bank's funding and liquidity compares weakly to other rated private sector peers in India, and could come under pressure if the bank is unable to strengthen its solvency in the next few quarters. Moody's continues to maintain a moderate probability of government support for deposits and senior unsecured debt, reflecting the bank's modest but rapidly growing franchise, and importance to India's banking system. This support assumption results in a one notch uplift to the bank's foreign currency issuer rating of Ba3 from its BCA of b1. WHAT COULD CHANGE THE RATING UP Given the review for downgrade, Moody's will unlikely upgrade the bank's ratings over the next 12-18 months. Nevertheless, Moody's could change the rating outlook to stable if Yes Bank: (1) maintains its current asset quality profile or adequately provides for the stock of stressed assets, and (2) concludes a material capital raise that strengthens its loss-absorbing buffers. WHAT COULD CHANGE THE RATING DOWN At the end of the review period, Moody's could downgrade Yes Bank's ratings if (1) the bank is unable to execute the planned capital raise, and/ or (2) there is a further deterioration in its impaired loans or loan-loss reserves, or if the rate of NPL formation is significantly higher than previously experienced, and/or (3) the bank's funding or liquidity deteriorates. The principal methodology used in these ratings was Banks published in August 2018. [*] INDIA: Mulls NBFC Debt Resolution Under Insolvency Law ---------------------------------------------------------- BloombergQuint reports that India is considering setting up a special window under the Insolvency and Bankruptcy Code for the resolution of stressed non-bank lenders. The government is closely considering the proposal of a framework to deal with financial services providers that require resolution in the absence of Financial Resolution and Deposit Insurance Bill, an official told reporters, BloombergQuint relates. But it's yet to finalise the bill that sought to resolve the stressed financial institutions. According to BloombergQuint, the official said the government is also working out a mechanism where the resolution applicant, who acquires a stressed company as a going concern under the IBC, won't face criminal liability of the previous company management. Besides, it's mulling a proposal in which properties or assets of companies under resolution won't be attached by investigation agencies, the official said, BloombergQuint relays. This comes after the Enforcement Directorate attached properties of Bhushan Power & Steel Ltd., alleging siphoning of funds by its erstwhile promoters, says BloombergQuint. JSW Steel Ltd., which has emerged as the successful bidder for Bhushan Power with its bid of INR19,700 crore, filed an appeal against the investigative agency's move before the National Company Law Appellate Tribunal. While the tribunal directed the Enforcement Directorate to release the attached properties, it stayed transfer of the payment by JSW Steel to the creditors of Bhushan Power until investigation into the allegations is completed, BloombergQuint notes. =============== M A L A Y S I A =============== TASEK CORP: Net Loss Narrows to MYR5.37MM in Q3 Ended Sept. 30 -------------------------------------------------------------- The Sun Daily reports that Tasek Corp Bhd's net loss for the third quarter ended Sept. 30, 2019 narrowed to MYR5.37 million from MYR5.99 million a year ago as the cement segment was affected by the prolonged price competition and high production cost. This was compounded by lower interest income and lower share of profit from associate company. Its revenue however, rose 6.9% to MYR160.24 million compared with MYR149.88 million previously, the report says. For the nine-month period, Tasek's net loss widened to MYR22.98 million from MYR15.07 million a year ago, but revenue rose 1.3% to MYR425.19 milllion from MYR419.79 million, the Sun Daily discloses. "The board views the outlook for the last quarter of the year to remain challenging if pricing pressure continues," Tasek, as cited by the Sun Daily, said. Tasek Corporation Berhad manufactures and sells cement and related products. The Company, through its subsidiaries, operates in property development. ================= S I N G A P O R E ================= HOE LEONG: UOB Withdraws JM Application, Statutory Demands ---------------------------------------------------------- The Business Times reports that Hoe Leong Corporation on Nov. 8 said that the Singapore High Court has granted leave for United Overseas Bank (UOB) to withdraw its application to place the firm under judicial management. Accordingly, UOB has filed a notice to do so, and has also withdrawn all statutory demands against the mainboard-listed company, BT relates. Last month, Hoe Leong Corp announced that it is proposing to sell two of its vessels for US$850,000 each, or a total of US$1.7 million to Allianz Offshore Ship Management, BT recalls. BT relates that the sale is expected to generate net proceeds of about SGD2.3 million, while resulting in a net loss on disposal of about SGD3.15 million. According to BT, Hoe Leong Corp is now under financial pressure, having received a statutory demand for SGD5.7 million from UOB in late August. The sale of the vessels is part of the restructuring plan the company is discussing with UOB, the report says. In May last year, it was reported that Hoe Leong Corp would become an associated company of UOB, after the bank acquired a 28.66 per cent stake in Hoe Leong via a scheme of arrangement, according to BT. Some 1.61 billion shares in Hoe Leong were alloted to the bank at a price of 1.15 Singapore cents per share, totalling about SGD18.5 million, the report notes. BT says the company had proposed the scheme of arrangement to restructure debt owed to bank creditors, and its controlling shareholder, Hoe Leong Co. Shares in Hoe Leong Corp have been suspended, and last traded at 0.2 Singapore cent on Aug. 28, down 33.3 per cent, or 0.1 cent, adds BT. Hoe Leong Corporation Ltd. -- https://www.hoeleong.com/ -- provides vessel-chartering services for the oil and gas industry. The Company also manufactures, trades and distributes spare parts for heavy equipment and industrial machinery. RYOBI KISO: PwC Seeks to Push Creditors' Meeting Deadline to 2020 ----------------------------------------------------------------- Annabeth Leow at The Business Times reports that the judicial managers of ailing construction firm Ryobi Kiso Holdings, which was first placed under interim judicial management in March, are asking for more time to carry out their work. According to the report, Goh Thien Phong and Chan Kheng Tek, from PricewaterhouseCoopers Advisory Services, told the bourse on Nov. 8 that they have filed for an extension to the deadline for sending creditors a statement of proposals and summoning a creditors' meeting, under their management of Ryobi Kiso Holdings and a subsidiary. BT relates that the judicial managers have asked for until May 13, 2020 to hold the meeting, and are also seeking an extension of the judicial management period, to June 13, 2020. The Singapore High Court had earlier ordered in May 2019 that the judicial managers comply with their statutory obligations by Nov. 13, BT says. Their latest request for extensions will be heard on Nov. 15. The judicial managers added that, if they are given the extensions, they will also ask for permission to make interim distributions to unsecured Ryobi Kiso creditors on the court's terms, BT relays. Ryobi Kiso Holdings Ltd. -- http://www.ryobi-kiso.com/-- an investment holding company, provides ground engineering solutions in Singapore, Australia, Malaysia, Vietnam, and Indonesia. Its Bored Piling segment offers piling works to carry heavy vertical loads from structures, such as buildings and bridges; and horizontal loads in earth retaining structures for deep excavation, including MRT tunnels and basements of buildings. Ryobi Kiso was placed under judicial management in March 2019. ********* 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. 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