/raid1/www/Hosts/bankrupt/TCRAP_Public/191213.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
Friday, December 13, 2019, Vol. 22, No. 249
Headlines
A U S T R A L I A
AUS CONFEC: Second Creditors' Meeting Set for Dec. 19
COASTLINE GROUP: ASIC Seeks to Wind Up Alleged Unregistered MIS
EPM CENTRAL: Second Creditors' Meeting Set for Dec. 19
FIRSTMAC MORTGAGE 4-2019: S&P Assigns BB(sf) Rating on Cl. E Notes
GT WINE: First Creditors' Meeting Set for Dec. 20
HARRIS SCARFE: First Creditors' Meeting Set for Dec. 20
HEART 2 HEART: Second Creditors' Meeting Set for Dec. 19
LEHMAN BROTHERS AUS: Liquidators Sue Fitch Over Toxic Products Risk
MAKESHI-THAPPEN & CO: First Creditors' Meeting Set for Dec. 20
NATIONWIDE CONCRETE: Second Creditors' Meeting Set for Dec. 19
YANG BROTHERS: First Creditors' Meeting Set for Dec. 20
C H I N A
CHINA: Consumer Inflation Skyrockets, Boosted by Pricey Pork
PEKING UNIVERSITY FOUNDER: Bond Default Hits Mutual Funds
SEAZEN HOLDINGS: Fitch Corrects Dec. 4 Press Release
SHANDONG RUYI: Moody's Cuts CFR to Caa1 & Alters Outlook to Neg.
I N D I A
AARVEE INTERNATIONAL: CRISIL Keeps D Rating in Not Cooperating
AGARWAL DIAM: CRISIL Lowers Rating on INR3.5cr Loan to B+
APOLLO ENTERPRISES: CRISIL Maintains D Rating in Not Cooperating
ARIHANT INFRASTRUCTURES: CRISIL Keeps B Rating in Not Cooperating
ARISTOCRAFT PAPERS: CRISIL Maintains D Rating in Not Cooperating
ARUNACHALA TRADING: CRISIL Maintains D Rating in Not Cooperating
ARUPPUKOTTAI SHRI: CRISIL Cuts Rating on INR5.75cr Loan to B+
ASUTI TRADING: CRISIL Maintains D Rating in Not Cooperating
ATC CHEMICALS: CRISIL Maintains 'B' Rating in Not Cooperating
BABA TECHNOCRATS: CRISIL Maintains B Rating in Not Cooperating
BALAJI POLYSACKS: CRISIL Maintains D Ratings in Not Cooperating
BANSAL RICE: CRISIL Maintains 'D' Ratings in Not Cooperating
C P ISPAT: CRISIL Maintains 'D' Ratings in Not Cooperating
C.L. GULHATI: CRISIL Maintains 'D' Ratings in Not Cooperating
CHADALAVADA INFRATECH: CRISIL Keeps D Ratings in Not Cooperating
CHAUDHARY TIMBER: CRISIL Maintains B Rating in Not Cooperating
DECON INDIA: CRISIL Cuts Rating on INR15cr Cash Loan to B+
DRASHTI INNOVATIVE: CRISIL Maintains D Rating in Not Cooperating
E C BOSE: CRISIL Maintains 'D' Rating in Not Cooperating
EBONY AUTOMOBILES: CRISIL Lowers Rating on INR14cr Loan to B+
HARIOM AQUA: Ind-Ra Migrates 'BB' Issuer Rating to Non-Cooperating
KINGFISHER AIRLINES: Founder Faces Bankruptcy Over $1.5BB in Debt
RAJATHADRI JEWELLERS: Ind-Ra Affirms 'D' Rating on INR180MM Loan
SUNRISE TIMPLY: Ind-Ra Affirms 'BB+' Issuer Rating, Outlook Stable
VIJAY ENGINEERING: Ind-Ra Migrates B+ LT Rating to Non-Cooperating
J A P A N
JAPAN DISPLAY: In Talks with Private Fund on JPY90BB Injection
OTSUKA KAGU: Yamada Denki to Acquire Feud-Ridden Furniture Seller
S I N G A P O R E
STAMFORD TYRES: Posts SGD867,000 Loss in Q2 Ended Oct. 31
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A U S T R A L I A
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AUS CONFEC: Second Creditors' Meeting Set for Dec. 19
-----------------------------------------------------
A second meeting of creditors in the proceedings of Aus Confec Pty
Ltd ATF the Aus Confec Unit Trust has been set for Dec. 19, 2019,
at 10:30 a.m. at McGrath Executive Suites, Level 5, at 115 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 Dec. 18, 2019, at 5:00 p.m.
Justin Holzman and Anthony Elkerton of DW Advisory were appointed
as administrators of Aus Confec on Nov. 18, 2019.
COASTLINE GROUP: ASIC Seeks to Wind Up Alleged Unregistered MIS
---------------------------------------------------------------
The Australian Securities and Investments Commission (ASIC) has
filed an application seeking leave to apply for further orders in
the Federal Court in Western Australia to wind up an alleged
unregistered managed investment scheme, and a related company,
operated by Chris Marco. ASIC is also seeking declarations that Mr.
Marco failed to hold an Australian Financial Services Licence
(AFSL) whilst carrying on a financial services business.
The application is filed in the matter currently against:
- Mr. Chris Marco, who traded as Coastline Group;
- AMS Holdings (WA) Pty Ltd (AMS); and
- AMS Holdings in its capacity as Trustee of AMS Holdings
Trust.
ASIC alleges Mr. Marco has been raising funds from investors since
January 2010, in contravention of section 911A (the requirement to
hold an AFSL) and section 601ED (the requirement to register a
scheme meeting certain criteria) of the Corporations Act 2001 (Cth)
and it is just and equitable that the scheme and AMS be wound up by
the Court.
ASIC is seeking interim orders to appoint a receiver over Mr.
Marco's and AMS's assets and, by way of final relief, orders to
wind up the scheme and AMS.
In total, Mr. Marco received approximately AUD240 million from 132
investors. Mr. Marco provided investors with a guarantee that their
principal investment was secured. ASIC will allege that there is a
very significant shortfall in the assets available to operate the
scheme into the future.
ASIC's investigation into other aspects of the alleged conduct of
Mr Marco and AMS is ongoing.
The first case management hearing is listed for Dec. 17, 2019.
On Nov. 1, 2018, ASIC obtained asset preservation orders over the
assets held by Mr, Marco and AMS. Since the orders were made, Mr.
Marco has made numerous applications to vary the asset preservation
orders permitting Mr Marco to pay expenses incurred by AMS.
ASIC provides updates on its ongoing investigation into the conduct
of Mr. Marco and AMS on the ASIC website.
EPM CENTRAL: Second Creditors' Meeting Set for Dec. 19
------------------------------------------------------
A second meeting of creditors in the proceedings of EPM Central
Coast Pty Ltd has been set for Dec. 19, 2019, at 11:30 a.m. at the
offices of Hall Chadwick Chartered Accountants, Level 4, at 240
Queen Street, in Brisbane City.
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 Dec. 17, 2019, at 5:00 p.m.
Richard Albarran & Kathleen Vouris of Hall Chadwick were appointed
as administrators of EPM Central on Nov. 21, 2019.
FIRSTMAC MORTGAGE 4-2019: S&P Assigns BB(sf) Rating on Cl. E Notes
------------------------------------------------------------------
S&P Global Ratings assigned ratings to seven of the eight classes
of prime residential mortgage-backed securities (RMBS) issued by
Firstmac Fiduciary Services Pty Ltd. as trustee for Firstmac
Mortgage Funding Trust No.4 Series 4-2019.
The ratings reflect:
-- S&P's view of the credit risk of the underlying collateral
portfolio, including the fact that this is a closed portfolio,
which means no further loans will be assigned to the trust after
the closing date.
-- S&P's view of the credit support, which is sufficient to
withstand the stresses it applies. Credit support for the rated
notes comprises note subordination, excess spread, and lenders'
mortgage insurance on 18.1% of the portfolio.
-- S&P's expectation that the various mechanisms to support
liquidity within the transaction, including a liquidity reserve
equal to 1.0% of the outstanding note balance, subject to a floor
of A$1,100,000, and the principal draw function are sufficient to
ensure timely payment of interest.
-- The extraordinary expense reserve of A$150,000, funded from day
one by Firstmac Ltd., available to meet extraordinary expenses. The
reserve will be topped up via excess spread if drawn.
-- The fixed- to floating-rate interest-rate swap provided by
Australia and New Zealand Banking Group Ltd. to hedge the mismatch
between receipts from fixed-rate mortgage loans and the
variable-rate RMBS.
RATINGS ASSIGNED
Firstmac Mortgage Funding Trust No.4 Series 4-2019
Class Rating Amount (A$ mil.)
A-1 AAA (sf) 935.00
A-2 AAA (sf) 77.00
AB AAA (sf) 38.50
B AA (sf) 19.80
C A (sf) 13.20
D BBB (sf) 7.48
E BB (sf) 4.40
F NR 4.62
NR--Not rated.
GT WINE: First Creditors' Meeting Set for Dec. 20
-------------------------------------------------
A first meeting of the creditors in the proceedings of GT Wine
Magazine Pty Limited will be held on Dec. 20, 2019, at 2:00 p.m. at
the offices of DW Advisory, Level 2, at 32 Martin Place, in Sydney,
NSW.
Cameron Hamish Gray and Anthony Wayne Elkerton of DW Advisory were
appointed as administrators of GT Wine on Dec. 11, 2019.
HARRIS SCARFE: First Creditors' Meeting Set for Dec. 20
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Harris
Scarfe Financial Services Pty Ltd and DS Opco Pty Ltd, formerly
trading as PSEA Dept. Stores Pty Ltd, will be held on Dec. 20,
2019, at 11:00 a.m. at Melbourne Convention and Exhibition Centre,
Clarendon Room A, Level 4, 1 Convention Centre Place, in South
Wharf, Victoria.
Duncan Clubb and Andrew Sallway of BDO were appointed as
administrators of Harris Scarfe on Dec. 11, 2019.
HEART 2 HEART: Second Creditors' Meeting Set for Dec. 19
--------------------------------------------------------
A second meeting of creditors in the proceedings of Heart 2 Heart
Fundraising Pty Ltd has been set for Dec. 19, 2019, at 4:00 p.m. at
Servcorp, Level 27, at 101 Collins St, 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 Dec. 18, 2019, at 4:00 p.m.
Grahame Ward and Domenic Calabretta of Mackay Goodwin were
appointed as administrators of Heart 2 Heart on Nov. 20, 2019.
LEHMAN BROTHERS AUS: Liquidators Sue Fitch Over Toxic Products Risk
-------------------------------------------------------------------
Sarah Danckert at The Sydney Morning Herald reports that the
liquidators to collapsed Wall Steet bank Lehman Brothers are suing
credit agency Fitch over misrepresenting the risk of toxic
investment products that were sold to Australian councils,
charities and church groups.
SMH says the liquidator is suing Fitch for AUD40 million alleging
the ratings agency relied on a "hidden" system to give low-risk
ratings on toxic investment products that were then sold to the
local councils.
According to SMH, Ernst & Young's Marcus Ayres, the liquidator to
Lehman Brothers Australia, has filed Federal Court action in recent
days to try to get more returns for the creditors to Lehman
brothers, which are mainly made up of the purchasers of the toxic
products it sold known as synthetic collateralised debt obligations
or CDOs.
CDOs are an exotic financial product in which loans are wrapped up
into parcels and then securitised. A synthetic CDOs is a product
that is effectively a bet on the outcome of the CDOs - ie, whether
they will default or be successfully paid out, the report notes.
SMH relates that the packaging and sale of synthetic CDOs and the
subsequent unravelling of these products are widely linked to the
global financial crisis and the collapse of Lehman Brothers itself,
including its Australian arm. The products featured in the hit film
The Big Short.
Scores of local councils from around Australia including
Wingecarribee Shire Council in NSW's Southern Highlands and Swan in
Western Australia purchased the products, as did charitable
organisations and church groups, according to SMH.
SMH says the local groups purchased the synthetic CDOs believing
they were rated highly by top ratings agencies including Fitch,
with many products carrying AAA ratings - the highest possible
rating indicating the lowest possible risk to the councils and
other groups buying the products.
Fitch rated these products based on their capacity to pay out
coupons to customer investors and the rate of default on loans
parcelled up to make the CDOs, the report states.
There was (allegedly) a hidden and password protected table within
the ratings model, SMH says.
According to SMH, lawyers for the liquidators argue that Fitch used
a "hidden table" that deliberately recalibrated the risk of default
on the loans.
Fitch is yet to be served with the claim but a spokesman said it
would vigorously defend any claim brought against it, the report
relates.
SMH says the collapse of Lehman Brothers in September 2008 has
sparked a bevy of lawsuits in Australia including class actions.
It's not the first time the liquidators have tried to recoup money
from Fitch by joining them to class actions brought against Lehman
Brothers Australia on behalf of local councils including one that
uncovered the alleged hidden table, SMH notes.
However, it is now hoped the fresh allegations that Fitch was using
a hidden process to dupe investors might allow for the liquidators
to recoup some cash from Fitch to pay out investors, says SMH.
According to SMH, Mr. Ayres said he filed action now to ensure the
liquidators avoided a potential procedural issue involving statute
of limitations on the claims.
"The basic proposition is that there was a hidden and password
protected table within the ratings model," SMH quotes Mr. Ayres as
saying.
SMH relates that Mr. Ayres said the table allegedly had the effect
of inflating ratings contrary to representations made by Fitch.
"In turn, this meant that the products actually did not have
Fitch's represented risk of default. In other words, the products
were more risky than represented," he said.
Mr. Ayres said that while the liquidation was nearing conclusion,
the creditors of Lehman are still owed substantial amounts and the
Fitch claim was estimated at AUD40 million, SMH relays.
"The recovery of an amount in respect of the harm caused would make
a substantial contribution against the losses suffered by the
councils, charities and mum and dad investors who were sold these
products to begin with."
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more than
150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers Holdings filed for Chapter 11 bankruptcy (Bankr.
S.D.N.Y. Case No. 08-13555) on Sept. 15, 2008. Lehman's bankruptcy
petition disclosed US$639 billion in assets and US$613 billion in
debts, effectively making the firm's bankruptcy filing the largest
in U.S. history. Several other affiliates followed thereafter.
Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC
sought for bankruptcy protection in December 2009.
The Debtors' bankruptcy cases were assigned to Judge James M. Peck.
Judge Shelley Chapman took over the case after Judge Peck retired
from the bench to join Morrison & Foerster.
A team of Weil, Gotshal & Manges, LLP, lawyers led by the late
Harvey R. Miller, Esq., serve as counsel to Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, served
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., served as the
Committee's investment banker.
On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.
District Court for the Southern District of New York, entered an
order commencing liquidation of Lehman Brothers, Inc., pursuant to
the provisions of the Securities Investor Protection Act (Case No.
08-CIV-8119 (GEL)). James W. Giddens was appointed as trustee for
the SIPA liquidation of the business of LBI. He is represented by
Hughes Hubbard & Reed LLP.
The Bankruptcy Court approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for US$1.75
billion. Nomura Holdings Inc., the largest brokerage house in
Japan, purchased LBHI's operations in Europe for US$2 plus the
retention of most of employees. Nomura also bought Lehman's
operations in the Asia Pacific for US$225 million.
Lehman emerged from bankruptcy protection on March 6, 2012, more
than three years after it filed the largest bankruptcy in U.S.
history. The Chapter 11 plan for the Lehman companies other than
the broker was confirmed in December 2011.
* * *
In October 2016, the team winding down LBHI paid $3.8 billion to
creditors, the 11th distribution since Lehman's collapse in 2008.
This brought the total payout to more than $113.6 billion.
Bondholders were projected to receive about 21 cents on the dollar
when Lehman's bankruptcy plan went into effect in early 2012. The
11th distribution raised the bondholders' recovery to more than 40
cents on the dollar and recoveries for general unsecured creditors
of Lehman's commodities to 79 cents on the dollar. Lehman's
aggregate 12th distribution to unsecured creditors pursuant to its
confirmed Chapter 11 plan will total approximately $3.0 billion.
MAKESHI-THAPPEN & CO: First Creditors' Meeting Set for Dec. 20
--------------------------------------------------------------
A first meeting of the creditors in the proceedings of
Makeshi-Thappen & Co Pty Ltd will be held on Dec. 20, 2019, at 9:30
a.m. at the offices of Helm Advisory, Suite 2, Level 16, at 60
Carrington Street, in Sydney, NSW.
Stephen Wesley Hathway of Helm Advisory was appointed as
administrator of Makeshi-Thappen & Co on Nov. 12, 2019.
NATIONWIDE CONCRETE: Second Creditors' Meeting Set for Dec. 19
--------------------------------------------------------------
A second meeting of creditors in the proceedings of Nationwide
Concrete Pumping (Qld) Pty Ltd and Nationwide Concrete Pumping
Victoria Pty. Ltd. has been set for Dec. 19, 2019, at 11:00 a.m. at
the offices of Chartered Accountants Australia & New Zealand
Level 18, at 600 Bourke Street, in Melbourne, Victoria.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Dec. 18, 2019, at 4:00 p.m.
Stephen Dixon and Leigh Dudman of Hamilton Murphy were appointed as
administrators of Nationwide Concrete on Nov. 8, 2019.
YANG BROTHERS: First Creditors' Meeting Set for Dec. 20
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Yang
Brothers Investment Pty Ltd, trading as Craft Beans, will be held
on Dec. 20, 2019, at 10:30 a.m. at the offices of PCI Partners Pty
Ltd, Level 8, at 179 Queen Street, in Melbourne, Victoria.
Stephen John Michell of PCI Partners Pty Ltd was appointed as
administrator of Yang Brothers on Dec. 12, 2019.
=========
C H I N A
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CHINA: Consumer Inflation Skyrockets, Boosted by Pricey Pork
------------------------------------------------------------
The Wall Street Journal reports that soaring hog prices continued
to drive up China's consumer inflation higher in November, but
experts remained optimistic that the momentum would slow as the
price of pork appears to be heading toward a peak in the coming
months.
China's consumer-price index rose 4.5 percent in November from a
year earlier, matching a pace set in January 2012, the Journal
discloses citing data released on Dec. 9 by the official National
Bureau of Statistics. The inflation reading was higher than a 3.8
percent rise in October.
The Journal relates that the price of pork continued to play a key
role in driving up consumer inflation by more than doubling from a
year ago and exceeding a previous record for year-over-year pork
inflation set just a month earlier in October.
An outbreak of African swine fever has wiped out about half of the
hog population in China, a country that relies on pork for most of
its protein needs, pushing up food prices across the board.
Meanwhile, thanks to recent government efforts to step up supply,
the monthly increase in China's pork price eased to 3.8 percent in
November, down 16.3 percentage points from October's month-on-month
gain, the Journal says.
According to the Journal, Beijing has started releasing pork
reserves to the market while ramping up imports from its trading
partners.
China's core consumer-price index, which strips out volatile food
and energy prices, decelerated to a 1.4 percent rise in November
from a year earlier, compared with a 1.5 percent gain in October,
the Journal notes.
PEKING UNIVERSITY FOUNDER: Bond Default Hits Mutual Funds
---------------------------------------------------------
Liang Hong and Denise Jia at Caixin Global report that several
mutual funds with exposure to Peking University Founder Group Co.'s
bonds plunged after Founder defaulted last week on a CNY2 billion
(US$285 million) bond. Meanwhile, as a deadline for repaying
investors drew near, Founder's largest shareholder made a move that
could affects the company's ability to resolve the crisis, the
report says.
Caixin relates that PICC Asset Management Co., which manages
several bond mutual funds with exposure to Founder's bonds, said it
will lower its funds' valuation based on prices quoted by China
Central Depository & Clearing Co. Ltd. (CCDC). The value of
Founder's defaulted bond plunged more than 70% Dec. 3, the day
after the Chinese industry and investment conglomerate failed to
repay it, according to CCDC. The value of Founder's other bonds
also took a hit, Caixin relays.
With four days left in a 15 business-day grace period for repaying
investors, it's not clear whether Founder will be able to raise
enough cash to do so as it pledged, according to Caixin. Meanwhile,
Beijing Peking University Asset Management Co., which holds 70% of
Founder Group, unilaterally said on Dec. 10 it will take over
Founder's real estate unit, Caixin notes.
PKU Resource Group, the real estate operation, is 40% owned by
Beijing Peking University Asset Management and 30% by Founder. As
of the end of 2018, it had CNY72.6 billion of real estate
investment and inventory, Caixin discloses. Founder had CNY14.9
billion of accounts receivable from the unit, Caixin discloses
citing a public letter issued by Beijing Zhaorun Investment
Management Co, Founder's second-largest shareholder.
Several of Founder's bondholders voiced concerns after seeing the
letter, the report says.
"We are worried that Founder's shareholders are trying to divest
the more profitable real estate unit, which will hurt creditors," a
bondholder told Caixin.
Founder, which is 70% held by state-owned Peking University, is
engaged in information technology services, real estate, health
care and financial and commodities trading. Institutional investors
previously had never had concerns about the state-owned
conglomerate, a bond investment manager at a brokerage told
Caixin.
According to Caixin, the default surprised the market as the
company's latest financial report showed it had net assets
exceeding CNY60 billion, including CNY45 billion in cash as of the
end of September.
As for PICC's bond mutual funds, one of Founder's other outstanding
bonds was the biggest holding in three fund portfolios, accounting
for 8.31% of the funds' total investment of CNY552 million, Caixin
discloses citing PICC's third-quarter financial report. On Dec. 3,
the net value of the three PICC funds plunged by 5% to more than
7%, recording the biggest declines among all bond mutual funds.
PICC's other bond mutual funds also experienced sharp declines, the
report notes. As the company's third-quarter report listed only the
top 10 holdings in the funds, it's not clear whether the other
funds also held Founder bonds.
Several brokerages including Shenwan Hongyuan Securities and China
Galaxy Securities also have large holdings in Founder's bonds.
Caixin learned that the brokerages are negotiating with investors
regarding investment losses.
Peking University Founder Group Corp provides information
technology services. The Company offers software development,
electronic publishing system development, smart city solution
development, data operation, and other services. Peking University
Founder Group also operates financing, medical technology
development, and other businesses.
SEAZEN HOLDINGS: Fitch Corrects Dec. 4 Press Release
----------------------------------------------------
Fitch Ratings replaced a ratings release on Seazen Holdings Co.,
Ltd. published on December 4, 2019 to correct the name of the
obligor for the bonds.
The amended press release is as follows:
Fitch Ratings has assigned Seazen Holdings Co., Ltd.'s (BB/Rating
Watch Negative) proposed US dollar senior notes a 'BB' rating, on
Rating Watch Negative. The notes are issued by Seazen Holdings'
indirect wholly owned subsidiary, New Metro Global Limited.
The proposed notes are unconditionally and irrevocably guaranteed
by Seazen Holdings and rated at the same level as Seazen Holdings'
senior unsecured rating because they constitute its direct and
senior unsecured obligations. Seazen Holdings intends to use the
net proceeds to refinance existing debt.
Seazen Holdings is a subsidiary of Seazen Group Limited (SGL,
BB/RWN). Fitch uses a consolidated approach to rate Seazen
Holdings, based on its Parent and Subsidiary Rating Linkage
criteria. Fitch placed both companies on RWN in July 2019 because
of a possible deterioration in their business and financial risk
profiles after their chairperson and founder, Mr. Wang Zhenhua, was
held in criminal custody by Chinese police. Fitch expects to
resolve the RWN after obtaining information on the companies'
recent operational and financial performance.
KEY RATING DRIVERS
Chairman Detained: SGL and Seazen Holdings announced on July 3 that
Mr. Wang was removed from his position as chairperson of the board
with immediate effect after confirmation by Shanghai police that he
was detained and held in criminal custody. Mr. Wang Xiaosong, Mr.
Wang's son, previously a non-executive director, has assumed the
role of chairperson of the two companies. The elder Mr. Wang is the
two entities' ultimate shareholder, with a 71% stake in SGL, which
holds 67% of Seazen Holdings.
Potential Risk to Credit Profile: Fitch believes Mr. Wang's custody
may damage the companies' near-term operational and financial
performance and reputation; nevertheless, pre-sales at SGL have
continued to increase, with total contracted sales of CNY247
billion in 11M19, a yoy increase of 24%. Contracted sales by gross
floor area reached 21.9 million square metres, a yoy increase of
38%. Funding channels may also be affected, although there have
been no debt covenant breaches to date. However, if there are any
unexpected events leading to prolonged weakness in operation or
financing, it may weaken the entities' credit profiles.
Underlying Credit Strength: Fitch affirmed the ratings of SGL and
Seazen Holdings in April 2019 to reflect the companies' stable
financial profiles while expanding quickly in both their
property-development and investment-property businesses. SGL's
business profile strength is supported by its large scale - with
contracted sales of CNY221 billion in 2018, diversified land bank,
which is sufficient for three to five years of development, and
growing investment-property business that generates predictable
contractual rental income, driving recurring EBITDA interest
coverage to 0.4x in 2018, from 0.2x in 2017.
SGL's leverage, defined by net debt/adjusted inventory after joint
ventures (JV) and associate proportionate consolidation, climbed to
44% in 2018, from 40% in 2017. Fitch expects some fluctuation in
leverage in the next two years due to rapid expansion, extensive
use of JV structures and a move towards higher attributable
interests in its projects, although leverage should stay below 50%.
Fitch rates the two entities based on their consolidated profile
due to their strong parent and subsidiary linkage.
DERIVATION SUMMARY
Fitch's consolidated approach to rating SGL and Seazen Holdings is
based on the Parent and Subsidiary Rating Linkage criteria due to
SGL's 67% stake in Seazen Holdings at end-2018. The companies'
strong strategic and operational ties are reflected by Seazen
Holdings representing SGL's entire exposure to the China
homebuilding business, while SGL raises offshore capital to fund
the group's business expansion. The two entities share the same
chairperson.
SGL's quick sales churn strategy contributed to the rapid expansion
of its contracted sales to a level that is higher than that of most
'BB' category peers. SGL's attributable sales reached CNY143
billion in 2018, higher than that of Sino-Ocean Group Holding
Limited (BBB-/Stable, Standalone Credit Profile: bb+), CIFI
Holdings (Group) Co. Ltd. (BB/Stable) and almost double that of
China Aoyuan Group Limited (BB-/Positive), KWG Group Holdings
Limited (BB-/Stable) and Logan Property Holdings Company Limited
(BB/Stable). SGL has also quickly expanded its investment
properties, which generated CNY2 billion of recurring income and a
recurring EBITDA/interest of 0.4x in 2018. SGL's
investment-property portfolio of around CNY40 billion is much
larger than that of all other 'BB' rated peers; this contributed to
and justified its leverage rising to be higher than that of peers.
SGL has maintained its leverage at around 45%, in line with 'BB'
rated peers, such as CIFI, but higher than Sino-Ocean Group's
around 35%. SGL's leverage increased in 2017-2018 due to continued
land replenishment and large capex to develop its
investment-property portfolio. SGL's recurring EBITDA/interest of
0.4x is similar to Sino-Ocean Group's level in 2018. However,
Sino-Ocean Group has a stronger and longer record in
investment-property operation, which supports its Standalone Credit
Profile being one notch above SGL's rating.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Total contracted sales reaching CNY270 billion in 2019 and
CNY300 billion in 2020, with around 70% attributable interests
- Land premium representing around 60% of attributable sales
proceeds in 2019 and 50% in 2020-2022 (2018: 60%)
- CNY22 billion-25 billion in investment property capex each year
in 2019-2022 (2018: CNY10.7 billion)
- Overall EBITDA margin to remain above 25% (2018: 26%)
- SGL maintaining a controlling shareholding in Seazen Holdings,
with no weakening in operational ties
RATING SENSITIVITIES
For both SGL and Seazen Holdings:
Fitch will take negative rating action if it sees a material
deterioration in SGL's pre-sales relative to its expectations or a
weakening in its funding access. The negative rating sensitivities
when Fitch affirmed SGL and Seazen Holdings ratings on April 15,
2019 were:
- Consolidated contracted sales/total debt sustained below 1.5x
- Net debt/adjusted inventory (after JV proportionate
consolidation) sustained above 50%
- EBITDA margin sustained below 18% (2018: 26.4%)
Separately for SGL, a weakening of the linkage between SGL and
Seazen Holdings may lead to negative rating action.
(All the ratios mentioned above are based on parent SGL's
consolidated financial data)
The RWN will be resolved after Fitch obtains further information on
the companies' recent operational and financial performance. The
ratings will be affirmed if SGL and Seazen Holdings maintain their
business and financial profiles in line with its forecasts, despite
the custody of their ex-chairperson.
LIQUIDITY
Sufficient Liquidity: The group doubled its unrestricted cash
balance to CNY41 billion in 2018, which was sufficient to cover
short-term borrowings of CNY27 billion. The group repaid its HKD2.3
billion convertible bond in early 2019.
SHANDONG RUYI: Moody's Cuts CFR to Caa1 & Alters Outlook to Neg.
----------------------------------------------------------------
Moody's Investors Service downgraded Shandong Ruyi Technology Group
Co., Ltd.'s corporate family rating to Caa1 from B3.
At the same time, Moody's has downgraded the rating on the senior
unsecured notes issued by Prime Bloom Holdings Limited and
guaranteed by Shandong Ruyi, to Caa2 from Caa1.
The ratings outlook has changed to negative from ratings under
review.
This rating action concludes the review for downgrade initiated on
October 10, 2019, following Moody's increased concerns over
Shandong Ruyi's ability to service its large onshore and offshore
debt maturities over the next 12-18 months.
RATINGS RATIONALE
"The downgrade reflects our increased concerns over Shandong Ruyi's
heightened refinancing risk, given its large upcoming debt
maturities, continued weak liquidity, and limited progress on its
refinancing plans," says Chenyi Lu, a Moody's Vice President and
Senior Credit Officer.
Shandong Ruyi's debt repayment risk is high, as it needs to address
a large amount of upcoming debt maturities, including USD345
million (RMB2.4 billion) of offshore bonds due in December 2019,
and RMB4.4 billion of domestic and puttable bonds maturing and
puttable in 2020.
In addition, Shandong Ruyi's liquidity remains weak. At the end of
September 2019, its cash reserves, including pledged deposits,
totaled just RMB8.8 billion. This, along with Moody's forecast of
RMB1.8 billion of cash flow from operations over the next 12
months, will be insufficient to cover debt maturities of RMB11.5
billion, bills payable of RMB5.0 billion, and estimated maintenance
capital spending of RMB100 million, over the same period.
Moody's is also concerned over Shandong Ruyi's timely execution of
its refinancing plans to meet its obligations, given its limited
progress to date. The company's refinancing plans include the
monetization of its alternative assets — namely power assets in
Pakistan and commercial buildings in Jining, Shandong — as well
as debt and equity issuance through capital markets, and/or
increased bank borrowings.
At the same time, Moody's expects Shandong Ruyi's debt leverage to
remain elevated and continue to be constrained by its and its
parent's high growth strategy and appetite for acquisitions,
weakening its capital structure and financial flexibility. Moody's
expects the company's adjusted debt/EBITDA will stay within
7.0x-7.5x over the next 12-18 months from 7.9x in the 12 months
ended June 2019.
Moody's has considered the following environmental, social and
governance (ESG) factors in its ratings assessment.
First, with regards to governance factors, Shandong Ruyi's weak
financial management, acquisitive investment strategy and high
reliance on short-term borrowings have resulted in heightened
liquidity risks and elevated financial leverage.
Second, Shandong Ruyi is a privately-owned company with
concentrated ownership. The parent company, which has a 53.5% stake
in Shandong Ruyi, is a privately-owned company with low
transparency.
With regards to environmental factors, Shandong Ruyi's textile
manufacturing businesses, which represented 22% of total revenues
in 2018, pose environment risks, in particular soil and water
pollution. The risks are partially offset by the use of more
advanced equipment.
The negative ratings outlook reflects Moody's expectation that
Shandong Ruyi's refinancing risk will remain elevated, and that its
recovery rates for its rated offshore senior unsecured notes will
weaken over the next 12-18 months.
Upward rating pressure in the near term is unlikely, given the
negative outlook. However, a positive ratings action could be
considered, if the company meaningfully improves its financial
position and liquidity.
Further downgrade rating pressure could arise if Shandong Ruyi
fails to meet its payment obligations or the recovery rates for its
rated offshore senior unsecured notes deteriorate beyond Moody's
expectations.
The principal methodology used in these ratings was Retail Industry
published in May 2018.
=========
I N D I A
=========
AARVEE INTERNATIONAL: CRISIL Keeps D Rating in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Aarvee International
(AI) continues to be 'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 18 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Cash 2 CRISIL D (ISSUER NOT
Credit Limit COOPERATING)
CRISIL has been consistently following up with AI for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 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 AI, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on AI is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of AI continues to be 'CRISIL D Issuer not
cooperating'.
Furthermore, the company has not paid the fee for conducting rating
surveillance as agreed to in the rating agreement.
AI was established in 2012 by the Sorthaiya family based in Rajkot
(Gujarat). The firm trades in agri-based commodities such as
soyabean meal, rapeseed and groundnut extraction meal, and wheat.
AGARWAL DIAM: CRISIL Lowers Rating on INR3.5cr Loan to B+
---------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Agarwal Diam
Expo Private Limited (ADEPL) to 'CRISIL B+/Stable Issuer not
cooperating' from 'CRISIL BB/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Proposed Cash .5 CRISIL B+/Stable (ISSUER NOT
Credit Limit COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with ADEPL for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 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 ADEPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ADEPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of ADEPL Revised to be 'CRISIL B+/Stable Issuer not
cooperating' from 'CRISIL BB/Stable Issuer not cooperating'.
Incorporated in 2011, Mumbai-based ADEPL is promoted by Bansal
family. The company trades in polished diamonds.
APOLLO ENTERPRISES: CRISIL Maintains D Rating in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Apollo Enterprises
(AE) continues to be 'CRISIL C Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.5 CRISIL D (ISSUER NOT
COOPERATING)
Cash Credit/ 1.0 CRISIL D (ISSUER NOT
Overdraft facility COOPERATING)
Rupee Term Loan 6.5 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with AE for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 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 AE, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on AE is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of AE continues to be 'CRISIL C Issuer not
cooperating'.
AE was incorporated in 2005 as a partnership firm by Mr. Avinash
Virkar, Mr. Ankur Agarwal and Mr. Pawan Agarwal. The firm is in the
business of providing crane rental services.
ARIHANT INFRASTRUCTURES: CRISIL Keeps B Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Arihant
Infrastructures (Arihant) continues to be 'CRISIL B/Stable Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 12.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with Arihant for
obtaining information through letters and emails dated May 31, 2019
and November 15, 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 Arihant, which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes information available on Arihant is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of Arihant continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Arihant was set up as a partnership firm in 2009. It is a
special-purpose vehicle formed by the Arihant group for undertaking
a residential real estate project, Arihant Cavetto, at Gariahat
Road, Kolkata (West Bengal). The firm is promoted by Mr. Mahendra
Kumar Pandya and his associates.
ARISTOCRAFT PAPERS: CRISIL Maintains D Rating in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Aristocraft Papers
Private Limited (APPL) continues to be 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.5 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 0.5 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 5.5 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with APPL for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 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 APPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on APPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of APPL continues to be 'CRISIL D Issuer not
cooperating'.
APPL was incorporated in 2008, promoted by Mr. Sanjay Kumar Jain,
Mr. Praveen Kumar Jain, Mr. Praveen Kumar Singhal, and Mr. Naresh
Kumar Jain. The company manufactures kraft paper at its facility in
Muzzafarnagar (Uttar Pradesh).
ARUNACHALA TRADING: CRISIL Maintains D Rating in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Arunachala Trading
Company (ATC) continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL D (ISSUER NOT
COOPERATING)
Letter of Credit 4 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with ATC for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 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 ATC, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ATC is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of ATC continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Furthermore, the company has not paid the fee for conducting rating
surveillance as agreed to in the rating agreement.
Set up in 2015 as a partnership entity, ATC trades in paper and
board. The firm, based in Sivakasi (Tamil Nadu), deals in two major
categories of paper - printing and writing Paper and copier paper.
The operations are managed by Mr. Chiranjeevi Rathnam.
ARUPPUKOTTAI SHRI: CRISIL Cuts Rating on INR5.75cr Loan to B+
-------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Aruppukottai
Shri Vijayalakshmi Textile MillsPrivate Limited (AVTPL) to 'CRISIL
B+/Stable Issuer not cooperating' from 'CRISIL BB-/Stable Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.75 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with AVTPL for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 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 AVTPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on AVTPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of AVTPL Revised to be 'CRISIL B+/Stable Issuer not
cooperating' from 'CRISIL BB-/Stable Issuer not cooperating'.
AVTPL was established in 1987 to manufacture cotton yarn. The
company has 3533 rotors in its manufacturing unit at Aruppukottai
in Tamil Nadu. It was managed by Mr Dinakaran, one of the
promoters, from 1987 to 2005, after which, his sister Ms
Renugadhevi, took over the management.
ASUTI TRADING: CRISIL Maintains D Rating in Not Cooperating
-----------------------------------------------------------
CRISIL said the ratings on bank facilities of Asuti Trading Private
Limited (ATPL) continues to be 'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Letter of Credit 40 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with ATPL for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 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 ATPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ATPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of ATPL continues to be 'CRISIL D Issuer not
cooperating'.
ATPL, based in Mumbai, is owned by Mr. Sidharth M Bagrecha, Mr.
Binod Kumar Agarwal and Mr. Vimal Agarwal. The company trades in
steel and iron products, such as hot-rolled coils, cold-rolled
coils, sheets, sponge iron fines/lumps, and pig iron.
ATC CHEMICALS: CRISIL Maintains 'B' Rating in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of ATC Chemicals India
Private Limited (ATCIPL) continues to be 'CRISIL B/Stable Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Long Term Loan 1.52 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term .48 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with ATCIPL for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 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 ATCIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ATCIPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of ATCIPL continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Furthermore, the company has not paid the fee for conducting rating
surveillance as agreed to in the rating agreement.
Incorporated in 2004, ATCIPL manufactures leather chemicals. The
manufacturing facility is based in Pondicherry. The managing
director of the company is Mr. J B Gualino.
BABA TECHNOCRATS: CRISIL Maintains B Rating in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Baba Technocrats And
Manufacturers Private Limited (BTMPL) continues to be 'CRISIL
B/Stable/CRISIL A4 Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 4 CRISIL A4 (ISSUER NOT
COOPERATING)
Cash Credit 3 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with BTMPL for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 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 BTMPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on BTMPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of BTMPL continues to be 'CRISIL B/Stable/CRISIL A4
Issuer not cooperating'.
Incorporated in 1997 as a partnership firm and reconstituted as a
private limited company in 2010, BTMPL manufactures precision
engineering components in Hyderabad. It is promoted by Mr Sai Balu
Ala and his associates.
BALAJI POLYSACKS: CRISIL Maintains D Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Balaji Polysacks
Private Limited (BPPL) continues to be 'CRISIL D/CRISIL D Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 3 CRISIL D (ISSUER NOT
COOPERATING)
Cash Credit 10 CRISIL D (ISSUER NOT
COOPERATING)
Letter of Credit 3 CRISIL D (ISSUER NOT
COOPERATING)
Standby Letter 1 CRISIL D (ISSUER NOT
of Credit COOPERATING)
Term Loan 0.95 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with BPPL for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 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 BPPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on BPPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of BPPL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
BPPL, incorporated in 1995 by Mr. Sajjan Kumar Agarwal, Mr. Sushil
Agarwal, and Mr. Naresh Kumar Agarwal, manufactures high-density
polyethylene (HDPE) bags, used primarily in the fertilizer industry
and in packaging grains. The company commenced commercial
production in 2000 and has capacity of 5400 tonne per annum. Its
operations are managed by Mr. Sushil Agarwal.
BANSAL RICE: CRISIL Maintains 'D' Ratings in Not Cooperating
------------------------------------------------------------
CRISIL said the ratings on bank facilities of Bansal Rice Mills -
Muktsar (BRM) continues to be 'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL D (ISSUER NOT
COOPERATING)
Term Loan 2 CRISIL D (ISSUER NOT
COOPERATING)
Warehouse Financing 4 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with BRM for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 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 BRM, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on BRM is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of BRM continues to be 'CRISIL D Issuer not
cooperating'.
Set up as a proprietorship firm in 2009 by Mr. Sanjiv Kumar and
reconstituted as a partnership firm in 2014, BRM processes basmati
and non-basmati rice for export houses and also sells under its own
brand, Barkat Rice. Production facilities are in Muktsar, Punjab.
C P ISPAT: CRISIL Maintains 'D' Ratings in Not Cooperating
----------------------------------------------------------
CRISIL said the ratings on bank facilities of C P Ispat Private
Limited (CPIPL) continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee .2 CRISIL D (ISSUER NOT COOPERATING)
Cash Credit 12 CRISIL D (ISSUER NOT COOPERATING)
Term Loan 7.8 CRISIL D (ISSUER NOT COOPERATING)
CRISIL has been consistently following up with CPIPL for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 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 CPIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on CPIPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of CPIPL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
CPIPL, incorporated in 2006, manufactures sponge iron. The company
commenced commercial production in July 2009 at its facility in
Durgapur, West Bengal. CPIPL was promoted by the Kolkata-based
Chawla family and was earlier managed by Mr. Amarjeet Chawla.
However, in September 2013, the Chawla family leased out the plant
to the Durgapur-based Jayshree group owned by Mr. Amit Agarwal and
his family. Since September 15, 2013, operations of the plant have
been managed by the Jayshree group. In February 2014, the Jayshree
group entered into an agreement with the Chawla family to purchase
CPIPL with effect from April 2014.
C.L. GULHATI: CRISIL Maintains 'D' Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of C.L. Gulhati and Sons
Limited (CLG) continues to be 'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 25 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 0.2 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with CLG for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 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 CLG, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on CLG is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of CLG continues to be 'CRISIL D Issuer not
cooperating'.
CLG was set up as private limited company in 1956 by Mr. C L
Gulhati and his associates. It became a public limited company.
Since its inception, CLG has been a dealer for the entire range of
TML's CVs. It became a dealer of TML's passenger vehicles in 2000.
CHADALAVADA INFRATECH: CRISIL Keeps D Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Chadalavada Infratech
Limited (CIL) continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 93 CRISIL D (ISSUER NOT
COOPERATING)
Cash Credit 22 CRISIL D (ISSUER NOT
COOPERATING)
Long Term Loan 65 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with CIL for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 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 CIL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on CIL is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of CIL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Chadalavada Infratech Ltd. (erstwhile Chadalavada Construction Pvt.
Ltd.) was incorporated in February 2000 and started as a
subcontractor to L&T. The company is engaged in Electrical
Transmission & Distribution Infrastructure Industry involving
Engineering, Procurement and Commissioning of sub-stations and
Electrical Transmission lines. The company undertakes activities
mostly for government departments.
CHAUDHARY TIMBER: CRISIL Maintains B Rating in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Chaudhary Timber
Industries Private Limited (CTIPL) continues to be 'CRISIL
B/Stable/CRISIL A4 Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Letter of Credit 86.5 CRISIL A4 (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with CTIPL for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 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 CTIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on CTIPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of CTIPL continues to be 'CRISIL B/Stable/CRISIL A4
Issuer not cooperating'.
CTIPL, incorporated in 2007 and promoted by Mr. Vishal Nijhwan and
family, trades and processes timber logs, mainly softwood and
yellow pine. Its plant is in Gandhinagar (Gujarat).
DECON INDIA: CRISIL Cuts Rating on INR15cr Cash Loan to B+
----------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Decon India
Plastics Private Limited (DIPL) to 'CRISIL B+/Stable Issuer not
cooperating' from 'CRISIL BB+/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Cash 15 CRISIL B+/Stable (ISSUER NOT
Credit Limit COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER
NOT COOPERATING')
CRISIL has been consistently following up with DIPL for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 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 DIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on DIPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of DIPL Revised to be 'CRISIL B+/Stable Issuer not
cooperating' from 'CRISIL BB+/Stable Issuer not cooperating'.
Incorporated in June 2011, DIPL is a wholly owned subsidiary of
Decon GmbH and manufactures and supplies injection-moulded plastic
components and chrome plated parts primarily to the VW group in the
domestic and global markets.
DRASHTI INNOVATIVE: CRISIL Maintains D Rating in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Drashti Innovative
Syncotex Private Limited (DISPL) continues to be 'CRISIL D/CRISIL D
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL D (ISSUER NOT
COOPERATING)
Cash Credit 10.13 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 4.00 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 9.87 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with DISPL for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 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 DISPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on DISPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of DISPL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Incorporated in 2013 and based in Surat, Gujarat, DISPL
manufactures and trades in fabrics used in home furnishing,
readymade garments, and dress material. GIPL, also based in Surat
and incorporated in 2010, is in a similar line of business. The
manufacturing facilities of both companies are in Surat. DISPL is
promoted by Mr. Dhaval Nakrani and Mr. Vishal Balar, while GIPL is
promoted by Mr. Nakrani.
E C BOSE: CRISIL Maintains 'D' Rating in Not Cooperating
--------------------------------------------------------
CRISIL said the ratings on bank facilities of E C Bose and Co
Private Limited (ECBPL) continues to be 'CRISIL D/CRISIL D Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL D (ISSUER NOT
COOPERATING)
Cash Credit 5.5 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with ECBPL for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 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 ECBPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ECBPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of ECBPL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
ECBPL was incorporated in 1851, promoted by the late Mr. Eshan
Chandra Bose, and is currently managed by his family. The company
offers stevedoring and forwarding services, besides other allied
services such as comprehensive shipping and logistical services,
customs clearance, shipping, chartering and freight forwarding, and
warehousing.
EBONY AUTOMOBILES: CRISIL Lowers Rating on INR14cr Loan to B+
-------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Ebony
Automobiles Private Limited (EAPL) to 'CRISIL B+/Stable Issuer not
cooperating' from 'CRISIL BB-/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 14 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Proposed Long Term 6.5 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with EAPL for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 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 EAPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on EAPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of EAPL Revised to be 'CRISIL B+/Stable Issuer not
cooperating' from 'CRISIL BB-/Stable Issuer not cooperating'.
Incorporated in September 2010 and promoted by Mr. Sanjay M, EAPL
is an authorised dealer of passenger vehicles of Tata Motors Ltd
(rated 'CRISIL AA/Positive/CRISIL A1+') and Fiat India Automobiles
Pvt Ltd in Bengaluru. Operations began in March 2011.
HARIOM AQUA: Ind-Ra Migrates 'BB' Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Hariom Aqua
Culture Private Limited's (HAPL) Long-Term Issuer Rating to the
non-cooperating category. The Outlook was Stable. The issuer did
not participate in the rating exercise despite continuous requests
and follow-ups by the agency. Therefore, investors and other users
are advised to take appropriate caution while using the rating. The
rating will now appear as 'IND BB (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR106 mil. Fund-based facilities migrated to non-cooperating
category with IND BB (ISSUER NOT COOPERATING) / IND A4+
(ISSUER NOT COOPERATING) rating; and
-- INR18.95 mil. Long-term loans due on December 2021 migrated to
non-cooperating category with IND BB (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 10, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in January 2010 by Mr. Suresh Patel and Mr. Hitesh
Patel, HAPL is engaged in shrimp farming and trading of products
related to farming such as feeds, seeds, probiotics, and aerator.
KINGFISHER AIRLINES: Founder Faces Bankruptcy Over $1.5BB in Debt
-----------------------------------------------------------------
Ellen Milligan at BloombergQuint reports that 12 state-owned Indian
banks are petitioning for ex-billionaire Vijay Mallya to be
declared bankrupt over GBP1.15 billion (US$1.52 billion) in unpaid
debts.
BloombergQuint relates that the banks and an asset restructuring
company, led by the State Bank of India, have taken the tycoon to a
London court in what lawyers have described as "the end of the
road" in their long-running battle. Mallya hasn't paid anything
toward the debt, the banks' lawyers told the court on Dec. 10.
It comes as Mr. Mallya, who founded the now defunct Kingfisher
Airlines Ltd., faces extradition to his home country of India to
face fraud charges, BloombergQuint says. He was granted permission
to appeal the decision, which will be heard in February.
The bankruptcy petition was brought in the U.K. because Mr. Mallya
has lived there for around 20 years and owns a number of assets in
the country, lawyer Marcia Shekerdemian told the court,
BloombergQuint relays. These include a townhouse in London's
Regent's Park thought to be worth more than 30 million pounds, a 13
million-pound mansion in Hertfordshire, three yachts and shares in
Force India Formula One Team Ltd.
BloombergQuint relates that the petition for bankruptcy should be
dismissed because the banks are pursuing the same debt through the
Indian courts on a diametrically opposite basis, Mr. Mallya's
lawyer Philip Marshall said in written submissions. At the very
least, the hearing should be adjourned until the determination of
Mr. Mallya's appeal against the extradition order against him, he
said.
He was arrested in London in April 2017 after 17 banks accused him
of willfully defaulting on more than GBP91 billion (US$1.3 billion)
in debt accumulated by Kingfisher Airlines, which shut down in
2012, the report recalls. A willful defaulter is someone who
refuses to repay loans despite having the means to do so.
RAJATHADRI JEWELLERS: Ind-Ra Affirms 'D' Rating on INR180MM Loan
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Rajathadri
Jewellers Private Limited's (RJPL) Long-Term Issuer Rating at 'IND
D (ISSUER NOT COOPERATING)'. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Thus, the rating is based on the best available
information. Therefore, investors and other users are advised to
take appropriate caution while using these ratings. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating action is:
-- INR180.0 mil. Fund-based working capital facilities (Long-
term/Short-term) affirmed with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
KEY RATING DRIVERS
The affirmation reflects a confirmation from the lenders of RJPL
continuous over-utilization of fund-based limits for 60 days in the
three months ended November 2019
RATING SENSITIVITIES
Positive: Timely debt servicing for at least the last three
consecutive months could result in a rating upgrade.
COMPANY PROFILE
RJPL has a gold and jewellery retail showroom in Bangalore.
SUNRISE TIMPLY: Ind-Ra Affirms 'BB+' Issuer Rating, Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Sunrise Timply
Company Private Limited's (STCPL) Long-Term Issuer Rating at 'IND
BB+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR60 mil. (reduced from INR80 mil.) Fund-based limit affirmed
with IND BB+/Stable rating; and
-- INR170 mil. (reduced from INR260 mil.) Non-fund-based limit
affirmed with IND A4+ rating.
KEY RATING DRIVERS
The affirmation reflects STCPL's continued medium scale of
operations, as indicated by revenue of INR761.87million in FY19
(FY18: INR858.66 million). The revenue declined due to the
implications of the goods and services tax.
The ratings reflect the modest EBITDA because of the trading nature
of the business. The margins increased to 2.3% in FY19 (FY18:1.85%)
due to a decline in raw material costs. The ROCE was 6% in FY19
(FY18: 6%).
The ratings also reflect the weak credit metrics. The gross
interest coverage (operating EBITDA/gross interest expense) was
stable at 1.6x in FY19 (FY18: 1.57x), as the increase in the
absolute operating EBITDA to INR17.75 million (INR15.86 million)
was offset by an increase in interest expenses. The interest
expenses increased due to a higher dependency on short-term working
capital due to a change in the procurement patterns from the
suppliers. The net interest coverage (operating EBITDA/net interest
expense) remained comfortable but deteriorated to 3.6x in FY19
(FY18:4.8x) due to stable interest income y-o-y. The net leverage
(total adjusted net debt/operating EBITDAR) deteriorated to 7.29x
(FY18:5.54x) due to increased dependence on fund-based working
capital.
Liquidity Indicator - Poor: The company's average use of its
fund-based limits was 97.7% for the 12 months ended in October
2019. The networking capital cycle increased to 87 days (FY18: 33
days) due to a decline in the creditor days to 76 days in FY19 from
114 in FY18. The creditor days reduced because, earlier, the raw
material was procured against letters of credit, which would offer
a payment period of 60 days; now, however, they are procured after
the payment has been made. This also led to an overall
deterioration in the net working capital cycle. As a result, cash
flow from operations turned negative at INR38.47 million (FY18:
INR11.48 million). As of March 2019, the company had a cash balance
of INR0.54 million (FYE18: INR0.49 million). The company also
maintained a fixed deposit of INR88.81 million in FY19.
The ratings, however, remain supported by the company's promoters'
experience of over 15 years in the timber trading business.
RATING SENSITIVITIES
Negative: Deterioration in the profitability and liquidity, leading
to a decline in the gross interest coverage below 1.5x, will be
negative for the ratings.
Positive: A substantial increase in the scale of operations, along
with an improvement in the liquidity and gross interest coverage to
3x, on a sustained basis, would lead to positive rating action.
COMPANY PROFILE
Incorporated in 2000, STCPL is engaged in the timber trading
business. The company imports around and processed timber logs from
Malaysia, Myanmar, Ivory Coast, Nigeria, New Zealand, and
Indonesia. The plywood is procured from the domestic market. It
sells its products to wholesalers, retailers, and sawmills in the
domestic market. STCPL's warehousing facility is located in
Khidderpore, Kolkata, which is close to Kolkata Port.
VIJAY ENGINEERING: Ind-Ra Migrates B+ LT Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Vijay Engineering
Equipment India Private Limited's (VEEIPL) 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 B+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR160.0 mil. Fund-based working capital limits migrated to
non-cooperating category with IND B+ (ISSUER NOT COOPERATING)
/ IND A4 (ISSUER NOT COOPEPRATING) rating; and
-- INR19.2 mil. Term loan due on January 2022 migrated to non-
cooperating category with IND B+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 3, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2006, VEEIPL is the sole authorized dealer of
machinery and spare parts manufactured by Volvo India Private
Limited in Andhra Pradesh and Telangana. It has six showrooms
across Andhra Pradesh and Telangana, and a servicing facility
(which is for only construction equipment only).
=========
J A P A N
=========
JAPAN DISPLAY: In Talks with Private Fund on JPY90BB Injection
--------------------------------------------------------------
The Japan Times reports that Japan Display Inc. is in talks with
private fund Ichigo Asset Management Ltd. about a capital injection
of around JPY90 billion that would shore up its ailing finances,
sources close to the matter said on Dec. 12.
The Japan Times relates that the struggling display-maker said in a
statement that it was discussing the deal with Ichigo, adding that
its board meeting would take up the issue later in the day.
If approved, Japan Display was set to make an announcement on Dec.
12 or later, the sources said.
According to the report, Japan Display's major client Apple Inc.
and others had previously proposed an investment of up to $430
million, but the U.S. tech giant is instead now considering a plan
to purchase some portions of the panel-maker's facilities in
Ishikawa Prefecture for $200 million.
Apple's shift in direction is apparently aimed at avoiding dilution
of equity in Japan Display and facilitating the investment by
Ichigo, the sources, as cited by The Japan Times, said.
Another prospective sponsor, Taiwanese electronics giant Wistron
Corp., had offered to directly provide funds to Japan Display, but
is also considering a purchase of the struggling display-maker's
assets, the sources said, the report relays.
The report notes that Japan Display initially tried to secure
financial support of up to JPY80 billion from a Chinese-Taiwanese
consortium, but the plan effectively stalled in September when
China's Harvest Tech Investment Management Co. withdrew from the
consortium, forcing the ailing company to seek new prospective
investors.
Japan Display reported a group net loss for the fiscal first half
through September of JPY108.67 billion due to massive restructuring
costs. Its negative net worth widened to JPY101.6 billion as of the
end of September, the Japan Times discloses.
Japan Display was established in 2012 through the merger of the
display operations of Sony Corp., Hitachi Ltd. and Toshiba Corp.
with support from the state-backed fund INCJ Ltd.
OTSUKA KAGU: Yamada Denki to Acquire Feud-Ridden Furniture Seller
-----------------------------------------------------------------
The Japan Times reports that Yamada Denki Co. will take over home
furnishing store Otsuka Kagu, the companies said Dec. 12, after the
furniture chain struggled to compete with cheaper rivals and
overcome a family-and-boardroom feud.
Otsuka Kagu, which could run out of cash in several months, will
issue JPY4.3 billion ($39.58 million) in new shares to Yamada
Denki, giving it 51.74 percent of the company, they said, The Japan
Times relays.
While the move is set to dilute the value of existing shares,
Otsuka's stock shot up 31 percent - their daily limit - to close at
JPY212.
Since Yamada Denki and Otsuka Kagu agreed on a business tie-up in
February this year, the furniture retailer has provided personnel
and furniture sales expertise to the electronics chain, which has
been focusing on its housing arm.
Otsuka Kagu said in a statement that it believes the partnership
with Yamada Denki "will help improve the brand image of the firm as
a quality furniture retailer, so deepening the ties with Yamada
Denki is the best choice to increase the sales and performance in
our domestic business," The Japan Times relays.
The report relates that the firm said it plans to spend JPY1.3
billion on advertising in the next three years to reconstruct the
brand image, while strengthening its online business by possibly
selling furniture on Yamada Denki's online store.
Already suffering from tough competition from cheaper furniture
stores such as Nitori Holdings and global chain Ikea, Otsuka Kagu
failed to recover from negative publicity over a battle between the
company's founder, Katsuhisa Otsuka, and his daughter and now-CEO
Kumiko Otsuka, the report says.
The pair's power struggle, rooted in differences over company
strategy, led to a proxy battle in 2015 and an emotional showdown
that was played out on national television, according to the
report.
Otsuka Kagu was known for selling premium furniture through
consulting services but Kumiko wanted to promote more midpriced
products to widen its customer base amid competition from more
reasonably priced rivals, the report says. Katsuhisa had stressed
that Otsuka Kagu should not change its focus.
The retailer posted a net loss of JPY3.2 billion for the fiscal
year ended in December 2018, mired in the red for the third
consecutive year, the Japan Times notes.
About Otsuka Kagu
Headquartered in Tokyo, Japan, Otsuka Kagu, Ltd. engages in the
furniture and interior retail business in Japan. It operates
through Product Development, Purchasing, Store Sales, Out-of-Store
Sales, and Contract Sales divisions. The company is also involved
in the acquisition, repair, sale, and wholesale of used goods; and
development and manufacture of light and durable bent wood
furniture. It engages in the BtoB business, such as furniture and
interior for hotel, welfare, and healthcare facilities, as well as
companies' executive/drawing rooms. The company operates a network
of directly managed and tie-up stores.
=================
S I N G A P O R E
=================
STAMFORD TYRES: Posts SGD867,000 Loss in Q2 Ended Oct. 31
---------------------------------------------------------
Tay Peck Gek at The Business Times reports that despite cutting
expenditure, Stamford Tyres' revenue for the second quarter did not
manage to cover costs, causing the mainboard-listed tyre and wheel
distributor to sink into the red.
The company, which had guided for losses just days before the
release of its financial results, on Dec. 12 reported losses of
SGD867,000 for the second quarter ended October, BT discloses. In
contrast, the bottom line for the year-ago period was SGD19,000.
BT relates that the company said in a press statement that the loss
for the quarter included a one-time cost of SGD400,000 relating to
the closure of a loss-making operation in Queensland, Australia.
Revenue declined to SGD53 million, 16.8 per cent lower year-on-year
from SGD63.7 million generated a year ago, BT discloses. This was
primarily due to lower sales in South-east Asia and the
rationalisation of non-profitable operations in China and
Queensland. Expenditure declined by 15 per cent to SGD54.9 million,
which outstripped the top line.
Also, its half-yearly bottom line saw red ink of SGD741,000,
reversing from earnings of SGD131,000 a year ago. Revenue was down
11 per cent from SGD121.7 million to SGD108.3 million.
Consequently, loss per share was 0.37 Singapore cent, versus
earnings per share of 0.01 cent for the year-ago period. Its net
asset value per share was 51.64 Singapore cents as at Oct. 31,
marginally lower than the 52.34 cents as at April 30, BT
discloses.
BT adds that Stamford Tyres' president Wee Kok Wah said: "The
global economic outlook remains challenging. To address the
challenges arising from the global oversupply of tyres and the
intense market competition, the group has deployed resources and
implemented strategies to diversify its product offerings to adapt
to the ongoing market changes. We have also taken more steps to
right-size our operations and this is reflected in the lowering of
operating costs during the year."
About Stamford Tyres
Stamford Tyres Corporation Limited is an investment holding
company. The Company's segments include Distribution and
Manufacturing. The Company, through its subsidiaries, is engaged in
the wholesale and retail of tires and wheels, design and contract
manufacturing of tires for various brands, tire retreading,
equipment trading, servicing of motor vehicles, and manufacturing
and selling of aluminum alloy wheels. Its geographical segments
include South East Asia, North Asia, Africa and Others.
Distribution of tires and wheels to external customers are included
in the South East Asia, North Asia, Africa and other segments.
Manufacturing of alloy wheels sold directly to external customers
are included in the South East Asia segment. Its brands include
Falken, Continental, Dunlop, Maxam, Stamford Sport Wheels, Sumo
Firenza and Sumo Tire. The Company offers a range of products that
include batteries, car audio and auto accessories. The Company also
offers workshop and tire services.
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