/raid1/www/Hosts/bankrupt/TCRAP_Public/191216.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, December 16, 2019, Vol. 22, No. 250
Headlines
A U S T R A L I A
ALITA RESOURCES: Galaxy Resources Withdraws DOCA Proposal
ALLENS STORES: First Creditors' Meeting Set for Dec. 20
COMPLETE EVENTS: Second Creditors' Meeting Set for Dec. 19
FP TURBO 2019-1: Moody's Gives B1 Rating on AUD13.5MM Cl. F Notes
GROCON PTY: Inks Deal w/ Creditors to Avoid Liquidation of 2 Units
LOFTUS COMPUTING: Second Creditors' Meeting Set for Dec. 19
PROTECTAPRINT MELBOURNE: Second Creditors' Meeting Set for Dec. 18
QUALITY TYRE: First Creditors' Meeting Set for Dec. 23
T & J CONSTRUCTION: Second Creditors' Meeting Set for Dec. 18
WARREGO RENDERING: First Creditors' Meeting Set for Dec. 23
YANG BROTHERS: First Creditors' Meeting Set for Dec. 20
C A M B O D I A
ADVANCED BANK OF ASIA: S&P Raises ICR to 'B+', Outlook Stable
C H I N A
TEWOO GROUP: Bond Defaults Reach Once-Safe Corners of Finance
WYNN MACAU: Moody's Rates $1BB Sr. Unsec. Notes 'B1', Outlook Pos.
I N D I A
AADYA MOTOR: CRISIL Maintains 'D' Ratings in Not Cooperating
ADITI INDUSTRIES: CRISIL Maintains 'B' Ratings in Not Cooperating
CASVA TILES: CRISIL Maintains 'B+' Ratings in Not Cooperating
EAK AUTOMOBILES: CRISIL Maintains 'B' Rating in Not Cooperating
EDATHADAN GRANITES: CRISIL Cuts Rating on INR6.05cr Loan to B+
EMARK ENERGISERS: CRISIL Lowers Rating on INR5cr Loan to B+
ENERGETIC GLOBETEX: CRISIL Keeps Debt Rating in Not Cooperating
ENIGMA VENTURES: CRISIL Maintains 'D' Ratings in Not Cooperating
EPARIS JEWELLERS: CRISIL Maintains B Rating in Not Cooperating
ESSPEE CONSTRUCTION: CRISIL Keeps B Debt Rating in Not Cooperating
FIELD MOTOR: CRISIL Lowers Rating on INR16.5cr Loan to B+
FLOREX CERAMIC: CRISIL Maintains 'B' Rating in Not Cooperating
GENESIS RESORTS: Court Admits Bank of Baroda Insolvency Bid
INDIAN RENEWABLE: Fitch Alters Outlook on BB+ LT IDRs to Negative
KONARK SYNTHETIC: CRISIL Lowers Rating on INR19.25cr Loan to D
MAKSON HEALTH: CRISIL Cuts Rating on INR18.69cr Term Loan to B+
MKJ TRADEX: CRISIL Lowers Rating on INR75cr Cash Loan to B+
PRINTWELL INTERNATIONAL: CRISIL Keeps B Rating in Not Cooperating
REGAL PRIDE: Insolvency Resolution Process Case Summary
SANSUN INDUSTRIES: CRISIL Cuts Rating on INR13.95cr Loan to B+
SUPER SHOES: CRISIL Maintains 'B' Rating in Not Cooperating
SURYA INDUSTRIES: CRISIL Maintains D Ratings in Not Cooperating
J A P A N
TAKATA CORP: Massive Recall Looms for Large Batch of Air Bags
S R I L A N K A
KOTAGALA PLANTATIONS: Fitch Affirms CC Rating on Secured Debentures
- - - - -
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A U S T R A L I A
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ALITA RESOURCES: Galaxy Resources Withdraws DOCA Proposal
---------------------------------------------------------
Mining News reports that Galaxy Resources said it won't amend a
deed of company arrangement proposal for collapsed Alita Resources,
paving the way for the Chinese to take control.
According to the report, Galaxy and China Hydrogen Energy (CHE)
both submitted DOCA proposals to recapitalise the company, but
administrator KordaMentha said on Dec. 13 CHE's would deliver a
"markedly superior" outcome to creditors.
Mining News relates that Galaxy said it was able to conduct
extensive due diligence on the Alita assets and liabilities,
including the suspended Bald Hill mine.
The company said it was not prepared to amend the offer terms
included in its proposed DOCA.
Galaxy was Alita's largest shareholder and also its largest secured
creditor, the report notes.
Mining News says the administrators have now repaid US$32.5 million
owed to Galaxy, using a AUD70 million loan facility provided by
CHE.
The funds received by Galaxy will be used to fully repay the
US$31.1 million facility drawn down to fund the acquisition of
Alita's debt, the report states.
It will leave Galaxy debt-free, the report says.
Mining News says CHE had been asked to provide an unconditional
deed of company arrangement proposal by today, which administrators
said would be outlined in a report to creditors due in about two
weeks.
The Bald Hill mine in Western Australia's Goldfields will remain
suspended, the report adds.
About Alita Resources
Alita Resources Limited operates as a mineral exploration and
excavation company. The Company explores and produces lithium and
tantalum concentrates. Alita Resources offers its services in
Australia.
Richard Tucker and John Bumbak of Kordamentha were appointed as
administrators of Alliance Mineral Assets Exploration Pty Ltd,
Tawana Gold Pty Ltd, and Waba Holdings Pty Ltd on Aug. 28, 2019.
ALLENS STORES: First Creditors' Meeting Set for Dec. 20
-------------------------------------------------------
A first meeting of the creditors in the proceedings of:
-- Allens Stores Pty Limited
-- Bronsonbay Proprietary Limited
-- Harrin Australia Pty Limited
-- Harris Scarfe Insurance Pty Ltd
-- Harsyn Pty Ltd
-- Storecon Pty Limited
will be held on Dec. 20, 2019, at 11:00 a.m. at Melbourne
Convention and Exhibition Centre, Clarendon Room A, Level 4, at 1
Convention Centre Place, in South Wharf, Victoria.
Duncan Clubb and Andrew Sallway of BDO were appointed as
administrators of Allens Stores, et. al., on Dec. 11, 2019.
COMPLETE EVENTS: Second Creditors' Meeting Set for Dec. 19
----------------------------------------------------------
A second meeting of creditors in the proceedings of Complete Events
Group Pty Ltd has been set for Dec. 19, 2019, at 12:00 p.m. at the
offices of RSM Australia, Equinox 4, Level 2, at 70 Kent Street, in
Deakin, ACT.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Dec. 18, 2019, at 5:00 p.m.
Jonathon Kingsley Colbran of RSM Australia Partners was appointed
as administrator of Complete Events on Nov. 22, 2019.
FP TURBO 2019-1: Moody's Gives B1 Rating on AUD13.5MM Cl. F Notes
-----------------------------------------------------------------
Moody's Investors Service assigned the following definitive ratings
to notes issued by Perpetual Trustee Company Limited in its
capacity as trustee of the FP Turbo Series 2019-1 Trust.
Issuer: FP Turbo Series 2019-1 Trust
AUD75.00 million Class A1 Notes, Assigned Aaa (sf);
AUD269.25 million Class A2 Notes, Assigned Aaa (sf);
AUD32.40 million Class B Notes, Assigned Aa2 (sf);
AUD15.30 million Class C Notes, Assigned A2 (sf);
AUD3.60 million Class D Notes, Assigned Baa1 (sf);
AUD17.10 million Class E Notes, Assigned Ba1 (sf);
AUD13.50 million Class F Notes, Assigned B1 (sf).
The AUD 1.35 million Class G Notes and the AUD 22.5 million Seller
Notes are not rated by Moody's.
The transaction is an Australian prime asset backed securitisation.
It is a cash securitization of operating, novated and finance
leases extended to Australian government and statutory
corporations, corporates, small and medium-sized businesses and
their employees. The leases are secured by passenger cars and
commercial vehicles. The collateral pool composition is static and
no pre-funding or substitution of receivables will take place
during the life of the transaction.
The securitised portfolio comprise lease instalment cash flows and
residual value cash flows. The present value of the outstanding
lease receivables balance is approximately AUD 441 million and the
nominal value of estimated operating lease residual value (RV) cash
flows amounts to around AUD 154.5 million. Due to the right of the
lessees to return the vehicle at contract maturity in order to
cover the final lease balance outstanding under an operating lease,
the notes are exposed to both default and market or residual value
risk of the related vehicles.
RATINGS RATIONALE
The definitive ratings take into account, among other factors: (i)
the evaluation of the underlying portfolio of lease obligors; (ii)
an evaluation of the underlying RV exposure; (iii) back-up
maintenance and servicer solutions; (iv) the credit enhancement
provided by subordination; (v) the liquidity support available in
the transaction by way of principal to pay interest and the
liquidity reserve fund.
The notes will be repaid on a sequential basis in the initial
stages, until the subordination percentage increases from the
initial 23.5% to 40.0% for the Class A Notes at which point Class
A2 to Class E Notes will be repaid on a pro-rata basis and senior
to Class F, Class G and Seller Notes. When the outstanding balance
of the pool falls below 20% of the initial pool balance at closing
the notes will once again be repaid on a sequential basis. There
are other portfolio performance triggers which must be met for the
notes to be paid pro-rata.
MODELLING APPROACH
Moody's applies a two-stage approach to modelling transactions with
RV risk. In the first step, Moody's models the expected loss on the
notes due to defaults. In the second step, additional losses
resulting from RV risk are modelled based on the RV haircuts
applied at contract maturity.
For the assessment of lessee default risk Moody's has determined
the lessee default distribution of the portfolio using CDOROM,
which simulates lessee defaults based on asset correlations and
default probabilities assumptions. Moody's assumed a mean lessee
default rate of 2.33%. For cash flow modeling Moody's assumed a
recovery rate following lessee default of 45%. To account for RV
risk in the portfolio Moody's assumes a Aaa haircut of 40.0%, a Aa2
haircut of 30.5%, a A2 haircut of 25.5%, a Baa1 haircut of 23.0%, a
Ba1 haircut of 18.0% and a B1 haircut of 11.0% on RV cash flows.
Methodology Underlying the Rating Action:
The principal methodology used in these ratings was "Moody's Global
Approach to Rating Auto Loan- and Lease-Backed ABS" published in
March 2019.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that could lead to an upgrade or downgrade of the note
ratings include (1) an improvement or deterioration in the credit
quality and performance of the collateral pool, and (2) higher or
lower than expected recoveries on defaulted loans. The Australian
economy and the market for used vehicles are primary drivers of
performance.
GROCON PTY: Inks Deal w/ Creditors to Avoid Liquidation of 2 Units
------------------------------------------------------------------
Ben Wilmot at The Australian reports that development company
Grocon, controlled by property scion Daniel Grollo, has avoided two
of its subsidiaries going into liquidation after striking a deal
with creditors who have accepted a AUD4 million deed of company
arrangement.
The Australian says the future of the two Grocon subsidiaries in
Queensland and Victoria was subject to a vote on Dec. 13 that could
have seen liquidators appointed and then pursue claims against the
subsidiaries, including for insolvent trading.
As reported in the Troubled Company Reporter-Asia Pacific on Nov.
4, 2019, The Australian Financial Review said that a dispute
between two of Australia's best-known property companies has boiled
over into public after Grocon put two subsidiaries into voluntary
administration in the middle of a court battle with Dexus over a
AUD28 million lease claim against it by Australia's largest office
landlord.
Grocon Pty Ltd is a development, construction and funds management
company.
LOFTUS COMPUTING: Second Creditors' Meeting Set for Dec. 19
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Loftus
Computing Services Pty Ltd has been set for Dec. 19, 2019, at 12:00
p.m. at the offices of Hall Chadwick Chartered Accountants, Level
21, at 25 Grenfell Street, in Adelaide, SA.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Dec. 18, 2019, at 5:00 p.m.
Brent Kijurina of Hall Chadwick was appointed as administrator of
Loftus Computing on Nov. 22, 2019.
PROTECTAPRINT MELBOURNE: Second Creditors' Meeting Set for Dec. 18
------------------------------------------------------------------
A second meeting of creditors in the proceedings of Protectaprint
Melbourne Pty. Ltd has been set for Dec. 18, 2019, at 2:30 p.m. at
the offices of Cor Cordis, Level 29, at 360 Collins 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. 17, 2019, at 5:00 p.m.
Barry Wight and Sam Kaso of Cor Cordis were appointed as
administrators of Protectaprint Melbourne on Nov. 14, 2019.
QUALITY TYRE: First Creditors' Meeting Set for Dec. 23
------------------------------------------------------
A first meeting of the creditors in the proceedings of Quality Tyre
Distributors Pty Ltd, trading as Trade Tyre Distributors, will be
held on Dec. 23, 2019, at 11:00 a.m. at the offices of Rodgers
Reidy, Level 12, The University Centre, at 210 Clarence Street, in
Sydney, NSW.
Andrew James Barnden of Rodgers Reidy was appointed as
administrator of Quality Tyre Distributors on Dec. 13, 2019.
T & J CONSTRUCTION: Second Creditors' Meeting Set for Dec. 18
-------------------------------------------------------------
A second meeting of creditors in the proceedings of T & J
Construction (TAS) Pty Ltd has been set for Dec. 18, 2019, at 11:00
a.m. at Shearer Room, The Old Woolstore Apartment Hotel, at
1 Macquarie Street, in Hobart, Tasmania.
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.
Michael Carrafa and Fabian Kane Micheletto of SV Partners were
appointed as administrators of T & J Construction on Nov. 18,
2019.
WARREGO RENDERING: First Creditors' Meeting Set for Dec. 23
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Warrego
Rendering Pty Ltd (Formerly known as "Australian Dehydration
Technologies Pty Ltd") will be held on Dec. 23, 2019, at 10:00 a.m.
at the offices of Pilot Partners, Level 10, at 1 Eagle Street, in
Brisbane, Queensland.
Nigel Robert Markey and Bradley Vincent Hellen of Pilot Partners
were appointed as administrators of Warrego Rendering on Dec. 12,
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 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 Partner was appointed as administrator
of Yang Brothers on Dec. 12, 2019.
===============
C A M B O D I A
===============
ADVANCED BANK OF ASIA: S&P Raises ICR to 'B+', Outlook Stable
-------------------------------------------------------------
S&P Global Ratings raised its long-term issuer credit rating on
Advanced Bank of Asia Ltd. (ABA) to 'B+' from 'B'. The outlook is
stable. At the same time, S&P affirmed its 'B' short-term issuer
credit rating on the bank. S&P has also raised its long-term issue
credit rating on ABA's senior unsecured local currency bond to 'B+'
from 'B'.
S&P said, "We raised our rating on ABA based on the bank's material
and growing market share of loans and deposits, with above-average
profitability. ABA is currently the third-largest bank in Cambodia
and its business franchise covers urban and rural customers, and
has a market-leading digital platform. In our view, the bank's
competitive advantage will likely continue to support long-term
business stability."
ABA's growing customer franchise across the country and its strong
presence in the micro and small and midsize enterprise (MSME)
lending segment will continue to support its business position. ABA
has been expanding its operations rapidly since 2010, especially in
the MSME segment. S&P estimates ABA's market share to be about 10%
for loans and about 12% for deposits as at June 30, 2019.
Although the bank generates high returns, rapid loan growth will
continue to consume capital at a faster rate than these returns. As
a result, S&P believes ABA's parent, the National Bank of Canada,
will continue to inject capital. The bank has maintained low
reported nonperforming loan (NPL) ratios throughout its expansion,
although this could be partially attributed to the denominator
effect of high loan growth. Nevertheless, S&P believes the bank
employs relatively prudent underwriting standards in the context of
Cambodia. The bank's loan portfolio is relatively diverse, with
little exposure to commercial real estate and condominiums. ABA's
funding and liquidity profile remains supportive of business
stability, attracting a large amount of low-cost retail deposits
that S&P assesses as relatively sticky.
S&P said, "Our capital assessment has been revised to moderate from
weak following internal capital generation and ongoing capital
injections from the National Bank of Canada. We forecast our
risk-adjusted capital ratio to be 5.0%-5.5% over the next 12
months. This has a neutral impact on our assessment of the bank's
stand-alone creditworthiness and rating given the higher risk
characteristics of Cambodia' banking system.
"The stable outlook on ABA reflects our view that the bank will
sustainably manage rapid loan and deposit growth. We believe it
will continue to report relatively good asset quality, although we
believe latent risks may be building with such high loan growth in
Cambodia's high-risk operating environment. Our base case is that
the bank's business franchise trajectory, capitalization, risk
profile, as well as funding and liquidity will remain unchanged
over the next 12 months.
"We may lower the rating if the bank's funding profile weakens
compared with peers', as reflected in a loan-to-deposit ratio
increasing well above the industry average. We could also lower the
rating if there was a material deterioration in asset quality
metrics, such as NPL ratio or a spike in credit costs."
S&P views an upgrade as unlikely.
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C H I N A
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TEWOO GROUP: Bond Defaults Reach Once-Safe Corners of Finance
-------------------------------------------------------------
The Wall Street Journal, citing S&P Global Ratings, reports that a
commodity trader has become China's first state-owned enterprise to
inflict losses on dollar bondholders in two decades, a new landmark
in a rising wave of defaults.
According to the Journal, Chinese authorities are allowing more
companies to renege on their debts, where once they would have
found ways to engineer bailouts. So far defaults have mostly been
concentrated in credit-starved private companies, but even some
groups with state backing are now failing to repay creditors as
promised.
The Journal relates that the shift comes as Chinese growth slows to
multidecade lows. Despite progress this week on a U.S.-China trade
deal, the slowdown has heaped pressure on shakier companies after
years of rampant corporate borrowing. Meanwhile, the local
governments that back many enterprises are struggling, as their
income from taxes and land sales declines.
Officials also want to curb moral hazard, or risky bets made in the
belief that another party, such as the government, will foot the
bill if things go wrong, the Journal says. In time that should lead
to more efficient markets, where investors make clearer
distinctions between different levels of credit risk, rather than
relying on blithe assumptions of state support.
Tewoo Group Co., a commodity trader owned by the municipal
government of the northern city of Tianjin, completed a debt swap
with holders of four dollar bonds totaling $1.25 billion, the
Journal reports citing a notice by the agent handling the deal.
Investors could receive 37 cents to 66.7 cents on the dollar in
cash for their bonds, or swap their holdings for new securities
that paid much lower interest, according to S&P, the Journal
relays. It said the exchange represented the first offshore default
by a state-owned enterprise in 20 years. Calls to Tewoo went
unanswered.
Earlier this month, Peking University Founder Group, a conglomerate
majority owned by one of Beijing's top universities, failed to
repay some yuan bondholders on time. It has until
Dec. 17 to make creditors whole, or trigger defaults on its roughly
$3 billion of dollar debt, the report notes.
According to the Journal, Owen Gallimore, head of credit strategy
at Australia & New Zealand Banking Group Ltd., said Tewoo and
Founder set a template for other state-linked groups in financially
stretched Chinese provinces. "Issuers have realized that they do
not need to pay offshore creditors back anymore,AUD the report
quotes Mr. Gallimore as saying.
The Journal relates that Mr. Gallimore's research showed that as of
Dec. 10, some $56.7 billion of Chinese corporate dollar bonds were
trading at yields of over 11%—levels that signal financial stress
or more severe distress. About 87% of that total dollar amount was
issued by private firms.
"The Chinese government will be more selective in bailing out state
companies,AUD given slowing growth and local governments' weakening
finances, said Iris Pang, Greater China economist at ING Wholesale
Banking, the Journal relays.
According to the Journal, S&P said other local authorities could
offer less support to uncompetitive state firms. That could lead to
higher funding costs for such companies, especially ones from
weaker provinces, or those lacking a clear ownership structure or
business model, said Cindy Huang, a senior director at S&P Global
Ratings, in an email, the Journal adds.
WYNN MACAU: Moody's Rates $1BB Sr. Unsec. Notes 'B1', Outlook Pos.
------------------------------------------------------------------
Moody's Investors Service assigned a B1 rating to Wynn Macau,
Limited's 10-year $1 billion senior unsecured notes. The assigned
rating is the same as the B1 rating on WML's existing senior
unsecured notes. Proceeds from the proposed debt offerings will be
used to permanently reduce senior secured debt at WML's
wholly-owned Wynn Resorts Macau S.A. subsidiary within 18 months
following the completion of the new note issuance. WML is majority
owned subsidiary of Wynn Resorts Finance, which in turn is a
wholly-owned subsidiary of Wynn Resorts, Limited. Wynn has a Ba3
Corporate Family Rating, Ba3-PD Probability of Default Rating,
SGL-1 Speculative Grade Liquidity rating and a positive outlook.
"The B1 rating assigned to WML $1 billion senior unsecured note
offering reflects the continuation of Moody's taking a consolidated
approach to Wynn's ratings as Moody's continues to view all the
operations of Wynn and its subsidiaries as a single enterprise for
analytic purposes, regardless of whether financings for some
subsidiaries are done on a stand-alone basis," stated Keith Foley,
a Senior Vice President at Moody's.
"Although the transaction is neutral from a leverage perspective,
the note issuance is a credit positive in that further extends
WML's debt maturity profile beyond the 2022 concession renewal, as
well as lowers the amount of senior secured debt in Wynn's
consolidated capital structure," added Foley.
Assignments:
Issuer: Wynn Macau, Limited
Senior Unsecured Regular Bond/Debenture, Assigned B1 (LGD5)
RATINGS RATIONALE
Wynn's Ba3 Corporate Family Rating is supported by the quality,
popularity, and favorable reputation of the company's resort
properties -- a factor that continues to distinguish it from most
other gaming operators -- along with the company's well-established
and very successful track record of building large, high quality
destination resorts. Wynn's very good liquidity profile and
relatively low cost of debt capital also support the ratings. The
Ba3 Corporate Family Rating also incorporates Moody's expectation
that Wynn will successfully renew its Macau concession agreement
prior to its 2022 expiration on terms that will not, in and of
itself, impair Wynn's credit quality.
Key credit concerns include Wynn's limited diversification despite
being one of the largest U.S. gaming operators in terms of revenue.
Wynn's revenue and cash flow will remain heavily concentrated in
the Macau gaming market, Moody's also expects that Wynn will be
presented with and pursue other large, high profile, integrated
resort development opportunities around the world. As a result,
there will likely be periods where the company's leverage
experiences periods of increases due to partially debt-financed,
future development projects.
The positive outlook reflects Moody's expectation that Boston
Encore Harbor, which officially opened June 23, 2019, will ramp
successfully during the next 3 to 6- month period. The positive
outlook also considers Moody's favorable positive long-term revenue
and earnings prospects for the company's Macau, China and Las Vegas
Strip, Nevada casino resort assets.
An upgrade would require that the continued ramp-up of Encore
Boston Harbor supports Wynn's ability to achieve and maintain net
debt/EBITDA on a Moody's adjusted basis below 5.0 times. Net
debt/EBITDA on a Moody's adjusted basis was about 5.1 times for the
latest 12-month period ended Sep. 30, 2019 applying about 50% of
the company's $1.7 billion of cash and equivalents (or $850
million) to the net debt calculation. Debt/EBITDA on a Moody's
adjusted basis on a gross basis for LTM period the latest 12-month
period ended Sep. 30, 2019 was 5.6 times. Ratings could be
downgraded if adjusted net debt/ EBITDA rises above 6.0 times for
any reason and/or the any future material issues arise that could
affect the company's operations or ability to maintain its
license.
Wynn Resorts Finance, LLC is an indirect wholly-owned subsidiary of
Wynn Resorts, Limited, and holds all of Wynn Resorts, Limited's
ownership interests in Wynn Las Vegas, LLC, which owns and operates
the Wynn Las Vegas integrated resort in Las Vegas, Nevada
(excluding certain leased retail space that is owned by Wynn
Resorts directly), in Wynn Asia, and in Wynn MA, LLC, which owns
and operates Encore Boston Harbor.
The principal methodology used in this rating was Gaming Industry
published in December 2017.
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I N D I A
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AADYA MOTOR: CRISIL Maintains 'D' Ratings in Not Cooperating
------------------------------------------------------------
CRISIL said the ratings on bank facilities of Aadya Motor Company
India Private Limited (AMCPL) continues to be 'CRISIL D/CRISIL D
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 12 CRISIL D (ISSUER NOT
COOPERATING)
Working Capital
Facility 20 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with AMCPL 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 AMCPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on AMCPL 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 AMCPL 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.
Incorporated in 2012, AMCPL, promoted by Mr. V Ramanand Rao, is the
authorised dealer for Porsche, with its showroom in Mumbai. The
company began operations in September 2012. The promoter also has
interests in auto dealerships of other brands through group
entities.
ADITI INDUSTRIES: CRISIL Maintains 'B' Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Aditi Industries (AI)
continues to be 'CRISIL B/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term 3.5 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 2.5 CRISIL B/Stable (ISSUER NOT
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 B/Stable Issuer not
cooperating'.
AI is a partnership concern and was formed in 2009. The day-to-day
operations of the firm are managed by Mr. Pawan Agarwal, who is one
of the partners of the firm. The firm has set up Portland pozzolona
cement (PPC) grinding unit near Naigaon (Assam). The unit started
operations in April 2012.
CASVA TILES: CRISIL Maintains 'B+' Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Casva Tiles Private
Limited (CTPL) continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee .13 CRISIL A4 (ISSUER NOT
COOPERATING)
Cash Credit 3.00 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term 2.57 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 6.8 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with CTPL 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 CTPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on CTPL 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 CTPL continues to be 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
Furthermore, the company has not paid the fee for conducting rating
surveillance as agreed to in the rating agreement.
Incorporated in 2013, CTPL is promoted by Morbi, Gujarat-based Mr
Arvind Aghara and Mr Chamanlal Aghara. The company produces digital
wall tiles and started commercial operations in July 2014.
EAK AUTOMOBILES: CRISIL Maintains 'B' Rating in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Eak Automobiles
Private Limited (EAPL) continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Inventory Funding
Facility 3 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Long Term Loan 3 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term 4.5 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility 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 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 2014, EAPL is setting up an automotive dealership
business for Hyundai Motor India Ltd at Panvel in Navi Mumbai
(Maharashtra). The company is promoted by Mr. Vishal Tyagi, who has
experience of over two decades in the automotive dealership
business.
EDATHADAN GRANITES: CRISIL Cuts Rating on INR6.05cr Loan to B+
--------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Edathadan
Granites to 'CRISIL B+/Stable Issuer not cooperating' from 'CRISIL
BB-/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 2.95 CRISIL B+/Stable (ISSUER
Bank Loan Facility NOT COOPERATING; Revised
from 'CRISIL BB-/Stable
ISSUER NOT COOPERATING')
Term Loan 6.05 CRISIL B+/Stable (ISSUER
NOT COOPERATING; Revised
from 'CRISIL BB-/Stable
ISSUER NOT COOPERATING')
CRISIL has been consistently following up with Edathadan 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 Edathadan, which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes information available on Edathadan
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 Edathadan Revised to be 'CRISIL B+/Stable Issuer not
cooperating' from 'CRISIL BB-/Stable Issuer not cooperating'.
Set up as a partnership firm in 2006, Edathadan produces sand and
aggregate products used in the construction sector. The firm has
its quarry and processing facility near Thrissur (Kerala), and
commenced commercial operations in June 2011. Its day-to-day
operations are managed by its managing partner, Mr. Sajan E N.
EMARK ENERGISERS: CRISIL Lowers Rating on INR5cr Loan to B+
-----------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Emark
Energisers Private Limited (EEPL) to 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating' from 'CRISIL BB-/Stable/CRISIL A4+ Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.4 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Bill Discounting .6 CRISIL A4 (ISSUER NOT
under Letter of COOPERATING; Revised from
Credit 'CRISIL A4+ ISSUER NOT
COOPERATING')
Cash Credit 5.0 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Proposed Long Term 1.16 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Term Loan .84 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with EEPL for obtaining
information through letters and emails dated October 15, 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 EEPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on EEPL 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 EEPL revised to be 'CRISIL B+/Stable/CRISIL A4 Issuer
not cooperating' from 'CRISIL BB-/Stable/CRISIL A4+ Issuer not
cooperating'.
Furthermore, the company has not paid the fee for conducting rating
surveillance as agreed to in the rating agreement.
EEPL, incorporated in 2011 in Mumbai, is promoted by Mr Mahesh
Kumar Shah and his son, Mr Ishan Mahesh Shah. The company
manufactures automotive and tubular batteries used largely in the
automotive industry, and solar batteries.
ENERGETIC GLOBETEX: CRISIL Keeps Debt Rating in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Energetic Globetex
Private Limited (EGPL) continues to be 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with EGPL 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 EGPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on EGPL 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 EGPL continues to be 'CRISIL D Issuer not
cooperating'.
EGPL, incorporated in 2015, manufactures sarees and ladies' dress
material in Surat and is promoted by Mr Juneja and Mr Nikunj
Kapadia.
ENIGMA VENTURES: CRISIL Maintains 'D' Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Enigma Ventures India
Private Limited (EVPL: part of the Kohinoor group) continues to be
'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Cash 8 CRISIL D (ISSUER NOT
Credit Limit COOPERATING)
CRISIL has been consistently following up with EVPL 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 EVPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on EVPL 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 EVPL continues to be 'CRISIL D Issuer not
cooperating'.
For arriving at the ratings, CRISIL has consolidated the business
and financial risk profiles of EVPL, Kohinoor Eximtex Pvt Ltd
(KEPL), Energetic Globetex Pvt Ltd (EGPL) and Kapadia Textiles
(KT), collectively referred to as the Kohinoor group, as these
entities are engaged in similar line of business and have
operational linkages.
Incorporated in 2010, EVPL manufactures sarees and dress materials.
The manufacturing facility in Surat is managed by Mr Sanjay Juneja
and Mr Jitendra Shukla.
EGPL, incorporated in 2015, manufactures sarees and ladies' dress
material in Surat and is promoted by Mr Juneja and Mr Nikunj
Kapadia.
Incorporated in 2012, KEPL manufactures fabrics and readymade
garments in Surat. Mr Sanjay Juneja and Mr Hiren Kapadia are the
promoters.
Registered in 2012, KT manufactures sarees and ladies' dress
material. The firm is based in Surat. Its partners are Mr. Sanjay
Juneja and Mr. Hiren Kapadia.
EPARIS JEWELLERS: CRISIL Maintains B Rating in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Eparis Jewellers (EJ)
continues to be 'CRISIL B/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with EJ 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 EJ, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on EJ 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 EJ continues to be 'CRISIL B/Stable Issuer not
cooperating'.
EJ, set up in 1992, is a gold retailer, operating one showroom in
Cuttack (Odisha). Mr. Epari Madhav Rao and Mr. Epari Arvind Rao are
the promoters.
ESSPEE CONSTRUCTION: CRISIL Keeps B Debt Rating in Not Cooperating
------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Esspee Construction
(EC) continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 3 CRISIL A4 (ISSUER NOT
COOPERATING)
Cash Credit 7 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with EC 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 EC, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on EC 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 EC continues to be 'CRISIL B/Stable/CRISIL A4 Issuer
not cooperating'.
EC is a partnership firm promoted by Mr. N L Pareek and his sons.
The firm undertakes construction of buildings and other civil
structures in Rajasthan.
FIELD MOTOR: CRISIL Lowers Rating on INR16.5cr Loan to B+
---------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Field Motor
Private Limited (FML) to 'CRISIL B+/Stable Issuer not cooperating'
from 'CRISIL BB/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Inventory Funding 16.5 CRISIL B+/Stable (ISSUER NOT
Facility COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Proposed Long Term 1.0 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Term Loan 1.5 CRISIL B+/Stable (ISSUER NOT
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with FML 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 FML, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on FML 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 FML Revised to be 'CRISIL B+/Stable Issuer not
cooperating' from 'CRISIL BB/Stable Issuer not cooperating'.
FML, a closely held public limited company and an authorised dealer
of Toyota Motors in Odisha, was set up in 2001 by Mr. Anil Taneja
and Mr. Sunil Taneja. FML has showrooms in Cuttack, Rourkela,
Sambalpur, and Bhubaneswar (all in Odisha).
FLOREX CERAMIC: CRISIL Maintains 'B' Rating in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Florex Ceramic
Private Limited (EVPL) continues to be 'CRISIL B/Stable/CRISIL A4
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2.25 CRISIL A4 (ISSUER NOT
COOPERATING)
Cash Credit 7.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Rupee Term Loan 8.35 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with EVPL 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 EVPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on EVPL 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 EVPL continues to be 'CRISIL B/Stable/CRISIL A4
Issuer not cooperating'.
Incorporated in August 2010, EVPL manufactures vitrified ceramic
tiles. Its manufacturing unit is in Morbi (Gujarat). The company is
promoted by Mr. Haresh Patel and Mr. Ramniklal Patel.
GENESIS RESORTS: Court Admits Bank of Baroda Insolvency Bid
-----------------------------------------------------------
The Economic Times reports that a bankruptcy court has admitted an
insolvency resolution plea filed by Bank of Baroda against
Mumbai-based Genesis Resorts, which defaulted on loans of about
INR230 crore.
According to the report, the division bench of judicial member
Bhaskara Pantula Mohan and technical member Rajesh Sharma
restrained the company and its promoters from transferring,
encumbering, alienating or disposing of the company's assets.
ET relates that the moratorium shall be effective until completion
of the corporate insolvency resolution process or until the bench
approves the resolution plan, the tribunal said in an order on Dec.
11.
The tribunal approved the appointment of Vijay Pitamber Lula as the
resolution professional to manage the company's affairs and the
revival process, ET discloses.
According to ET, Bank of Baroda said in its plea that it had
sanctioned credit of INR149 crore to Genesis Resorts in 2012. After
Genesis Resorts defaulted on repayment of the loans, the account
was classified as a non-performing asset on November 30, 2016. Now,
the bank has approached the dedicated bankruptcy court to recover
dues including interest, which add up to INR230 crore.
Nishit Dhruva, managing partner at law firm MDP & Partners, who
represents the lender in the case, confirmed the development, but
refused to divulge details, ET notes.
Genesis Resorts owns a four-star hotel in Vile Parle, a northern
suburb of Mumbai.
INDIAN RENEWABLE: Fitch Alters Outlook on BB+ LT IDRs to Negative
-----------------------------------------------------------------
Fitch Ratings revised the Outlook on the Long-Term Foreign- and
Local-Currency Issuer Default Ratings of Indian Renewable Energy
Development Agency Limited to Negative from Stable. Fitch has
affirmed IREDA's Long-Term Foreign- and Local-Currency Issuer
Default Ratings and its long-term senior unsecured rating at 'BB+'.
At the same time, Fitch has affirmed the Short-Term IDR and the
short-term senior unsecured rating at 'B'.
The revision of the Outlook follows the change in the outlook on
IREDA's Standalone Credit Profile to negative due to a weaker
financial performance in the financial year ended March 2019 (FY19)
and deterioration in the company's debt-to-equity ratio. The weaker
FY19 financial performance was primarily due to increased finance
costs and a INR1.67 billion increase in the level of IREDA's
impairments on financial assets. The impairments were driven by
IREDA's adjustment to the Reserve Bank of India's decision to
withdraw previous exemptions regarding the recognition of
non-performing assets in FY19 and other non-recurring items, such
as a INR689.91 million provision taken for IREDA's investment in
commercial paper issued by Infrastructure Leasing & Financial
Services Limited.
Fitch classifies IREDA as a government-related entity (GRE) under
its Government-Related Entities Rating Criteria and assigns the
company a weighted score of 30 under the GRE factor assessment.
This results in the company being rated on a 'top-down minus 1'
approach. Therefore, IREDA is rated one notch below the Indian
sovereign's Long- Term Foreign- and Local-Currency IDRs of 'BBB-'.
KEY RATING DRIVERS
Weaker Standalone Credit Profile: Its assessment of IREDA's
Standalone Credit Profile takes into account the company's
concentrated business model, moderate capitalisation against its
higher risk appetite and greater exposure to potential
asset-quality volatility in the Indian renewable-energy sector.
Fitch also recognises IREDA's smaller franchise size, significant
reliance on foreign funding sources and the related market risk
this entails.
'Very Strong' Status, Ownership and Control: IREDA is a non-deposit
accepting, non-banking financial company that is wholly owned by
the central government and registered with the Reserve Bank of
India. It was incorporated under the Indian Companies Act 1956 and
is under the administrative control of the Ministry of New and
Renewable Energy (MNRE). While IREDA has received central
government and equity market regulatory approval for a potential
INR1.39 billion equity issuance, it is currently unclear whether or
not this issuance will proceed given current market conditions. If
the issuance proceeds, Fitch expects the state to maintain a
controlling stake in IREDA, but it may weaken its assessment of
this rating factor due to dilution of government ownership and
control.
The MNRE sets IREDA's operational and financial performance
targets, which are reviewed quarterly. The entity's board is
appointed by the government, while the comptroller and auditor
general of India appoint IREDA's auditors annually. IREDA has held
'Miniratna' status since June 2015 based on its profitability; this
status is provided to small- to medium-sized, public-sector
companies that have a comparative advantage and allows some
independence in operating and capex management.
'Strong' Support Record and Expectations: IREDA has not received
direct state financial support since 2015, but it is one of several
Indian GREs that are permitted to raise low-cost funds through
tax-free domestic bonds or government fully serviced taxable bonds.
IREDA also benefits from government guarantees on its multilateral
debt, which represented around 43% of its total borrowings as of
FYE19.
The MNRE uses IREDA to implement its national policy objective to
develop installed renewable energy across the world's third-largest
electricity grid. IREDA is the sole administrator for MNRE's
programmes, which include incentive schemes for wind and
solar-power projects, such as roof-top solar and capital subsidies
for solar-water heating. Government policies remain supportive of
IREDA's objectives, but Fitch believes other GREs may receive
support ahead of IREDA in exceptional circumstances.
'Moderate' Default Socio-Political Implications: Fitch believes a
default by IREDA would have limited socio-political implications
due to the nature of the services it provides. IREDA is one of the
most established lenders to India's renewable-energy sector,
supporting over 15% of the country's cumulative installed
renewable-energy capacity in 2019. However, Fitch believes that in
the event of default, it would be possible for domestic and
international private-sector financiers or other GREs to provide
substitute services with only minor disruption to the provision of
electricity. Fitch also believes there would be limited political
repercussions from a default, as any adverse impact on the economy
would be minor in light of IREDA's role as an ancillary service
provider to the national electricity network.
'Strong' Default Financial Implications: IREDA occasionally acts as
a proxy funding vehicle for the MNRE, which is not permitted to
borrow directly, and plays an important public-policy role in
raising low-cost capital and encouraging investment in India's
renewable-energy sector. The company's annual borrowing
requirements are driven by the government's renewable-energy
generation capacity targets for 2022. However, the amount of
IREDA's capital raising is typically smaller than that of larger
Indian GREs and peers. Therefore, Fitch believes a financial
default would have significant implications for the central and
state governments, other GREs' borrowing and refinancing capacity
in the capital market and wider investor sentiment towards the
sovereign, other GREs and the Indian electricity sector.
RATING SENSITIVITIES
Evidence of consistent strengthening of the company's financial
profile or increased state support may prompt an upgrade.
A weakening of the company's financial profile or weakened links
with the state, as manifested in diminishing sovereign control,
could lead to a downgrade.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of 3 - ESG issues are credit
neutral or have only a minimal credit impact on the entity, either
due to their nature or the way in which they are being managed by
the entity.
KONARK SYNTHETIC: CRISIL Lowers Rating on INR19.25cr Loan to D
--------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Konark
Synthetic Limited (KSL) to 'CRISIL D/CRISIL D' from 'CRISIL
B/Stable/CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 19.25 CRISIL D (Downgraded from
'CRISIL B/Stable')
Letter of Credit 8.75 CRISIL D (Downgraded from
'CRISIL A4')
The ratings reflect instances of continuous overdrawals by KSL's
promoters for more than 30 days in the working capital facilities
due to weak liquidity.
The ratings also factor in the small scale of KSL's operations amid
intense competition, large working capital requirement, and weak
debt protection metrics. These weaknesses are partially offset by
the extensive experience of the promoters in the textile industry.
Analytical Approach
Unsecured loans have been treated as debt.
Key Rating Drivers & Detailed Description
Weaknesses
* Stretched liquidity
Liquidity is weak due to continuous overdrawals for more than 30
days and there has been devolvement in the letter of credit
facility, which has also been unpaid for over 30 days in the
working capital facilities.
* Small scale of operations
Small scale, reflected in revenue of INR78.2 crore in fiscal 2019,
along with limited product differentiation may continue to
constrain scalability, pricing power and profitability.
* Large working capital requirement
The working capital cycle is likely to remain stretched over the
medium term, leading to high bank limit utilization. Gross current
assets were 248 days as on March 31, 2019, driven by large
receivables of 148 days and inventory of 105 days; further,
creditors extended by the suppliers stood outstanding at 44 days.
* Weak debt protection metrics
Debt protection metrics have been modest, with interest coverage
and net cash accrual to adjusted debt ratios of 1.24 times and 0.02
time, respectively, in fiscal 2019.
Strengths:
* Extensive experience of the promoters
Benefits derived from the promoters' experience of over three
decades, their strong understanding of local market dynamics, and
healthy relations with suppliers and customers should continue to
support the business.
Liquidity Poor
Liquidity is weak, with low cash inflow and hence, delay in
servicing of debt.
Rating sensitivity factors
Upward factors
* Track record of timely debt servicing for at least more than 90
days
* Prudent working capital management
KSL, incorporated in 1984, manufactures specialty yarn and fabrics;
trades in processed fabric; and undertakes job work for readymade
garments. The company has three facilities - a yarn unit in
Silvassa, a fabric unit in Sarigram (Gujarat) and a garment
manufacturing unit in Bengaluru. Mr Prakash Dalmia and Mr Ram
Tibrewala are the promoters.
MAKSON HEALTH: CRISIL Cuts Rating on INR18.69cr Term Loan to B+
---------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Makson Health
Care Private Limited (MHCPL) to 'CRISIL B+/Stable/CRISIL A4 Issuer
not cooperating' from 'CRISIL BB+/Stable/CRISIL A4+ Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.65 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
Letter of Credit 8.78 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Term Loan 18.69 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with MHCPL 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 MHCPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MHCPL 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 MHCPL revised to be 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating' from 'CRISIL BB+/Stable/CRISIL A4+ 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 1994, MHCPL manufactures medicated lozenges and
confectionery products for large fast-moving consumer goods
companies. The company is a part of the Makson group. It sells its
products in India and also exports to Singapore and Australia. It
is promoted by Mr. Dhanjibhai A Makasana, Mr. Mayur C Patel, Mrs.
Parul R Patel, and Mr. Shivam R Patel.
MKJ TRADEX: CRISIL Lowers Rating on INR75cr Cash Loan to B+
-----------------------------------------------------------
CRISIL has revised the ratings on bank facilities of MKJ Tradex
Limited (MKJ) to 'CRISIL B+/Stable Issuer not cooperating' from
'CRISIL BB+/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 75 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with MKJ 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 MKJ, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MKJ 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 MKJ Revised to be 'CRISIL B+/Stable Issuer not
cooperating' from 'CRISIL BB+/Stable Issuer not cooperating'.
MKJ was set up in 1995 by Mr Mahendra Kumar Jalan. It is part of
the Kolkata-based Keventer group. The company trades in stainless
steel products such as wires, wire rods, and bright bars. It
procures these products from Mukand Ltd, with which it has been
associated for about three decades. The Keventer group has diverse
operations, with presence in the dairy, food packaging, and real
estate segments.
PRINTWELL INTERNATIONAL: CRISIL Keeps B Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Printwell
International Private Limited (PIPL) continues to be 'CRISIL
B/Stable/CRISIL A4 Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.6 CRISIL A4 (ISSUER NOT
COOPERATING)
Cash Credit 2.4 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term 2.46 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 3.20 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with PIPL 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 PIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on PIPL 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 PIPL continues to be 'CRISIL B/Stable/CRISIL A4
Issuer not cooperating'.
Furthermore, the company has not paid the fee for conducting rating
surveillance as agreed to in the rating agreement.
Incorporated in 2007, PIPL is promoted by Mr. Pradeep Shinde, Mr.
Dilip Shinde, Mr. Suhas Kulkarni, and Ms. Sunita Kulkarni. PIPL is
engaged in offset printing of textbooks and other commercial
material. The company's printing facility is located at the
Maharashtra Industrial Development Corporation facility in
Aurangabad (Maharashtra).
REGAL PRIDE: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Regal Pride Trading & Commercial Pvt. Ltd.
Shop No. 117, 1st Floor, Citi Mall
New Link Road, Oshiwara
Andheri West, Mumbai
Mumbai City (MH) 400053
India
Insolvency Commencement Date: December 6, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: June 3, 2020
(180 days from commencement)
Insolvency professional: Vipul Mittal
Interim Resolution
Professional: Vipul Mittal
Office No. 405 B-C-Block
Silver Mall, R N T Marg
(Old Name: J M B Tower)
South Tukoganj Gali No. 02
Indore, Madhya Pradesh 452001
E-mail: ca.vipulmittal09@gmail.com
- and –
501, 5th Floor, Commercial Complex
"Shrishti Square" Sonapur Junction
LBS Marg, Bhandup
West Mumbai 400078
E-mail: ip.regalp@gmail.com
Last date for
submission of claims: December 20, 2019
SANSUN INDUSTRIES: CRISIL Cuts Rating on INR13.95cr Loan to B+
--------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Sansun
Industries Private Limited (SIPL) to 'CRISIL B+/Stable/CRISIL A4'
from 'CRISIL BB-/Stable/CRISIL A4+'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee .8 CRISIL A4 (Downgraded from
'CRISIL A4+')
Cash Credit 5.25 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Proposed Fund-
Based Bank Limits 13.95 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
The downgrade reflects receivables stretched to 332 days, with
gross current assets (GCAs) of 394 days as on March 31, 2019, from
216 days and 308 days, respectively, a year earlier. Any further
stretch in the working capital cycle or deterioration in revenue
could impact liquidity and the overall financial risk profile.
The ratings reflect SIPL's stretched working capital cycle and
modest scale of operations. These weaknesses are partially offset
by extensive experience of the promoters.
Key Rating Drivers & Detailed Description
Weakness
* Stretched working capital cycle: Operations are working
capital-intensive, as reflected in GCAs of over 300 days in the
three years through March 31, 2019, driven by stretched receivables
of 332 days.
* Modest scale of operations: Operating income was modest at
INR16.19 crore in fiscal 2019. Intense competition and tender-based
business should continue to constrain SIPL's bargaining power and
scalability.
Strengths
* Extensive experience of the promoters: The promoters have an
experience of more than 10 years in the fitness and playground
equipment industry. This has helped them understand the dynamics of
the market and establish healthy relationship with its suppliers
and customers.
Liquidity: Stretched
Bank limit utilisation averaged 97% over the six months through
October 31, 2019. Cash accrual, expected at INR1.87 crore per
fiscal, should sufficiently cover yearly debt obligation of
INR15'61 lakh over the medium term. Current ratio stood at 1.14
times as on March 31, 2019. Liquidity is further supported by
unsecured loans provided by the promoters.
Outlook: Stable
CRISIL believes SIPL will continue to benefit from the proprietor's
extensive experience.
Rating sensitivity factors
Upward factors
* Improvement in the working capital cycle, with GCAs below 180
days, driven by improvement in receivable cycle
* Sustained improvement in scale and profitability leading to
higher cash accruals
Downward factors
* Sales declining below 30%, leading to lower accrual
* Further stretch in receivables leading to weakening of the
working capital cycle.
SIPL was established as a proprietorship in 2006 and reconstituted
as a private limited company in 2012. It mainly manufactures open
garden fitness and children's playground equipment. The
manufacturing facility is in Nashik, Maharashtra. Mr Rajender
Jadhav is the promoter of the company.
SUPER SHOES: CRISIL Maintains 'B' Rating in Not Cooperating
-----------------------------------------------------------
CRISIL said the ratings on bank facilities of Super Shoes Limited
(SSL) continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.50 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Letter of credit .48 CRISIL A4 (ISSUER NOT
& Bank Guarantee COOPERATING)
Proposed Cash 1.50 CRISIL B/Stable (ISSUER NOT
Credit Limit COOPERATING)
Proposed Long Term 1.52 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with SSL 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 SSL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SSL 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 SSL continues to be 'CRISIL B/Stable/CRISIL A4 Issuer
not cooperating'.
SSL, incorporated in 2008-09, is engaged in manufacturing of upper
and leather shoes for both men and women. The company is promoted
by Mr Veqarul-Ul-Amin. The company is located in Unnao at Leather
Technology Park, situated 8 kms from Kanpur (Uttar Pradesh).
SURYA INDUSTRIES: CRISIL Maintains D Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Surya Industries (SI)
continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee .02 CRISIL D (ISSUER NOT
COOPERATING)
Cash Credit 14.00 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term
Bank Loan Facility 6.58 CRISIL D (ISSUER NOT
COOPERATING)
Term Loan .40 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SI 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 SI, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SI 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 SI continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
SI hulls and mills paddy and processes basmati rice. It was founded
by a group of locals in Ghubaya village in Jalalabad (Punjab) in
2000. In 2009, it was taken over by Mr. Subhash Chander and his
family members. Currently, it is being managed by Mr. Anil Josan
and Mr. Raman Josan.
=========
J A P A N
=========
TAKATA CORP: Massive Recall Looms for Large Batch of Air Bags
-------------------------------------------------------------
Bloomberg News reports that global automakers may face another
potentially huge air-bag recall as the U.S. transport regulator
evaluates the long-term safety of inflators made by bankrupt
supplier Takata Corp.
The manufacturer, now owned by China's Ningbo Joyson Electronic
Corp., faces a Dec. 31 deadline to show the U.S. National Highway
Traffic Safety Administration that as many as 100 million inflators
containing a chemical drying agent will be safe long-term.
Those would be on top of the previous round of recalls, which
started in 2008 and is linked to at least 23 deaths worldwide and
more than 200 injuries in the U.S. alone.
Takata had sold defective air bag inflators using ammonium nitrate,
which were at risk of exploding violently in a crash and injuring
passengers with metal shards.
The Japanese parts maker pleaded guilty to a wire-fraud charge as
part of a $1 billion settlement with the U.S. Justice Department
over the air-bag problems, and later went out of business.
About Takata Corp.
Japan-based Takata Corporation developed, manufactured and sold
safety products for automobiles. The Company offered seatbelts,
airbags, steering wheels, child seats and trim parts.
Takata Corp. filed for bankruptcy protection in Tokyo and the U.S.,
amid recall costs and lawsuits over its defective airbags. Takata
and its Japanese subsidiaries commenced proceedings under the Civil
Rehabilitation Act in Japan in the Tokyo District Court on June 25,
2017.
Takata's main U.S. subsidiary TK Holdings Inc. and 11 of its U.S.
and Mexican affiliates each filed voluntary petitions under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No.
17-11375) on June 25, 2017. Together with the bankruptcy filings,
Takata announced it has reached a deal to sell all its global
assets and operations to Key Safety Systems (KSS) for US$1.588
billion.
Nagashima Ohno & Tsunematsu is Takata's counsel in the Japanese
proceedings. Weil, Gotshal & Manges LLP and Richards, Layton &
Finger, P.A., are serving as counsel in the U.S. cases.
PricewaterhouseCoopers is serving as financial advisor, and Lazard
is serving as investment banker to Takata. Ernst & Young LLP is
tax advisor. Prime Clerk is the claims and noticing agent. The
Debtors Meunier Carlin & Curfman LLC, as special intellectual
property counsel.
Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal
counsel, KPMG is serving as financial advisor, Jefferies LLC is
acting as lead financial advisor. UBS Investment Bank also
provides financial advice to KSS.
On June 28, 2017, TK Holdings, as the foreign representative of the
Chapter 11 Debtors, obtained an order of the Ontario Superior Court
of Justice (Commercial List) granting, among other things, a stay
of proceedings against the Chapter 11 Debtors pursuant to Part IV
of the Companies' Creditors Arrangement Act. The Canadian Court
appointed FTI Consulting Canada Inc. as information officer. TK
Holdings, as the foreign representative, is represented by McCarthy
Tetrault LLP.
The U.S. Trustee has appointed an Official Committee of Unsecured
Trade Creditors and a separate Official Committee of Tort
Claimants.
The Official Committee of Unsecured Creditors has selected
Christopher M. Samis, Esq., L. Katherine Good, Esq., and Kevin F.
Shaw, Esq., at Whiteford, Taylor & Preston LLC, in Wilmington,
Delaware; Dennis F. Dunne, Esq., Abhilash M. Raval, Esq., and Tyson
Lomazow, Esq., at Milbank Tweed Hadley & McCloy LLP, in New York;
and Andrew M. Leblanc, Esq., at Milbank, Tweed, Hadley & McCloy
LLP, in Washington, D.C., as its bankruptcy counsel. The Committee
has also tapped Chuo Sogo Law Office PC as Japan counsel.
The Official Committee of Tort Claimants selected Pachulski Stang
Ziehl & Jones LLP as counsel. Gilbert LLP will evaluate of the
insurance policies. Sakura Kyodo Law Offices will serve as special
counsel.
Roger Frankel, the legal representative for future personal injury
claimants of TK Holdings Inc., et al., tapped Frankel Wyron LLP and
Ashby & Geddes PA to serve as co-counsel.
Takata Corporation ("TKJP") and affiliates Takata Kyushu
Corporation and Takata Services Corporation commenced Chapter 15
cases (Bankr. D. Del. Case Nos. 17-11713 to 17-11715) on Aug. 9,
2017, to seek U.S. recognition of the civil rehabilitation
proceedings in Japan. The Hon. Brendan Linehan Shannon oversees
the Chapter 15 cases. Young, Conaway, Stargatt & Taylor, LLP,
serves as Takata's counsel in the Chapter 15 cases.
* * *
In February 2018, the U.S. Bankruptcy Court confirmed the Fifth
Amended Chapter 11 Plan of Reorganization filed by TK Holdings,
Inc. ("TKH"), Takata's main U.S. subsidiary, and certain of TKH's
subsidiaries and affiliates.
=================
S R I L A N K A
=================
KOTAGALA PLANTATIONS: Fitch Affirms CC Rating on Secured Debentures
-------------------------------------------------------------------
Fitch Ratings affirmed Sri Lanka-based Kotagala Plantations PLC's
National Long-Term Rating and the National Rating on its
outstanding senior-secured debentures at 'CC(lka)'.
The affirmation reflects Kotagala's continued weak liquidity and
high credit risk; it had LKR27 million in cash to meet LKR1.5
billion of short-term debt falling due in the next 12 months as of
end-September 2019. The company has no unutilised committed credit
lines and Fitch is not certain as to how it will meet the third
LKR250 million tranche of its listed debenture due May 2020.
The company says that it expects its ultimate parent, The Colombo
Fort Land & Building PLC (CFLB), to aid Kotagala's settlement of
the third tranche of the debenture. However, Fitch regards CFLB's
liquidity position as weak and do not factor in timely support to
be available from the parent. Kotagala has available broker credit,
which could be used to fund working capital requirements, but the
amount of credit is subject to change in line with the market price
of tea.
KEY RATING DRIVERS
High Liquidity Risk: Fitch believes Kotagala will continue to face
high liquidity risk based on its expectation that the company's
operating cash flow and financial profile is likely to remain weak
while the plantation business remains unprofitable. Kotagala had
assets available for disposal with carrying value of LKR340 million
at end-March 2019, including a 15% stake in its profitable former
subsidiary, Union Commodities (Private) Limited, as well as its
stakes in York Hotels (Kandy) Limited and Agarapatana Plantations
Limited. However, Fitch believes the company's ability to raise
funds through timely asset sales is limited.
Timely Parental Support Constrained: Fitch believes CFLB's
(excluding Kotagala) ability to continuously provide financial
assistance to Kotagala may be constrained by its weak liquidity
profile, with EBITDA/interest to remain below 1.0x (financial year
ending March 2019 (FY19): 0.7x) and a cash balance of LKR908
million compared with near-term debt maturities of LKR12.5 billion.
CFLB has investment properties with a fair value of LKR6.8 billion
that are unencumbered, which may support its liquidity, but timely
support to Kotagala may remain difficult. CFLB's subsidiary, Lankem
Ceylon PLC, extended an inter-company loan to Kotagala of LKR220
million in 1QFY20, which was instrumental in repaying the second
tranche of Kotagala's listed debenture.
Arrears in Other Obligations: Kotagala has around LKR700 million in
term loans due in the 12 months to end-September 2020; it plans to
repay around LKR200 million via a tripartite agreement with tea
brokers and related banks. The company may have to reschedule the
principal repayment on the LKR500 million balance, as it has done
on several occasions in the past, as it is unlikely to generate
sufficient operating cash to meet the repayment. Fitch would not
consider the rescheduling of Kotagala's bank loan as a distressed
debt exchange, as it continues to service the interest and has not
had to resort to more severe reduction in repayment terms, such as
offering equity in exchange for principal payments. Local banks
have been supportive of the plantation sector, particularly because
they are required by regulators to maintain a minimum exposure to
the agriculture sector.
Kotagala also has arrears amounting to around LKR900 million on
statutory payments related to governmental lease rentals, employee
pensions and gratuity. Kotagala hopes to settle its lease rental
arrears by harvesting around LKR400 million of its timber while
paying any court-directed penalties on its overdue pension
obligations.
Volatile EBITDA Generation: Fitch expects Kotagala's EBITDA losses
to fall to around LKR90 million in FY20, from LKR400 million in
FY19, on better profitability in the oil-palm segment. However,
Fitch does not expect the company to generate sufficient EBITDA in
the next two to three years to meet annual interest payments of
around LKR400 million. Kotagala's oil-palm business will be the key
profit driver as more of its immature plantations should bear fruit
in the medium term. However, uncertainty surrounding the legality
of replanting oil palm may be adverse for the segment in the long
term. The company's tea and rubber segments are likely to remain
pressured by low market prices.
DERIVATION SUMMARY
Kotagala's rating reflects poor liquidity and high credit risk
stemming from its poor operating cash flow, excessive leverage and
limited medium-term business prospects due to inherent weaknesses
in its tea and rubber plantation businesses. These factors result
in Kotagala being rated multiple notches below other publicly rated
non-financial corporates in Sri Lanka.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- An average crude palm oil price of USD490/million tonnes in
FY20 (FY19: 555/million tonnes), tea price of around USD3/kg (FY19:
3.6/kg) and an average rubber price of USD1.6/kg (FY19: 1.5/kg).
- Annual EBITDAR margin to remain negative at 3.2% in FY20 (FY19:
negative 14%), but for the margin to turn positive in FY21 owing to
increased contribution from the oil-palm segment and a turnaround
in the tea business.
- Capex to hover at LKR200 million, or 6.5% of revenue, through
to FY20-FY23 and be used for replanting of tea, oil palm and rubber
(FY19: LKR212 million).
- Working capital outflow to average around LKR20 million a year
over FY20-FY23 (FY19: LKR13 million).
- No dividend outflow in FY20-FY23.
RATING SENSITIVITIES
Developments that May, Individually or Collectively, Lead to
Positive Rating Action
- Significant improvement in the company's liquidity profile.
Developments that May, Individually or Collectively, Lead to
Negative Rating Action
- The company entering into a temporary negotiated waiver or
standstill agreement following a payment default on a large
financial obligation.
LIQUIDITY AND DEBT STRUCTURE
High Liquidity Risk: Kotagala had LKR27 million in unrestricted
cash at end-September 2019 to meet LKR1.5 billion of short-term
debt due in the next 12 months. Of this, LKR550 million was working
capital facilities that could possibly be rolled over in the
ordinary course of business. The company does not have unutilised
committed credit lines and has rescheduled principal repayments on
some of its term loans to manage liquidity, but continues to pay
interest. Kotagala is also negotiating the restructuring of
short-term loans amounting to around LKR124 million.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2019. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
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Information contained herein is obtained from sources believed
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TCR-AP subscription rate is US$775 for 6 months delivered via e-
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thereof are US$25 each. For subscription information, contact
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