/raid1/www/Hosts/bankrupt/TCRAP_Public/191219.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
Thursday, December 19, 2019, Vol. 22, No. 253
Headlines
A U S T R A L I A
19 ROYAL ALBERT: First Creditors' Meeting Set for Dec. 31
ACTUS OPERATIONS: First Creditors' Meeting Set for Dec. 24
FIVE STAR 2019-1: Fitch Assigns BB+ Rating on Cl. F Debt
FOX SYMES 2019-1: S&P Assigns BB+ Rating on Class E Notes
PROJECT SUNSHINE IV: Moody's Affirms B2 CFR, Outlook Stable
RALAN GROUP: Creditors Vote for Founder's DOCA
SOUTH PELAGIC: First Creditors' Meeting Set for Dec. 31
SPG PROJECTS: First Creditors' Meeting Set for Dec. 27
SWC MANAGEMENT: First Creditors' Meeting Set for Dec. 31
TOTAL BATHROOM: First Creditors' Meeting Set for Dec. 27
C H I N A
GIONEE COMMUNICATION: Creditor Woes Deepen as Liquidation Hits Snag
ICBC: S&P Reinstates 'BB' Rating on EUR600MM Preference Shares
I N D I A
ADITYA RICE: ICRA Reaffirms B+ Rating on INR9cr Cash Loan
AMTEK AUTO: Lenders Seek to Intervene in Insolvency Case
ASA PRODUCTION: Insolvency Resolution Process Case Summary
ASHIRVAD INDUSTRIES: ICRA Keeps 'B' Rating in Not Cooperating
COCHIN BRIDGE: ICRA Keeps D on INR9.11cr Loan in Not Cooperating
DHURIA RICE: ICRA Keeps B on INR7.5cr Cash Credit in NonCooperating
EAST HYDERABAD EXPRESSWAY: ICRA Keeps D Rating in Not Cooperating
ESSAR STEEL: Promoters Not Off the Hook Yet After Most Dues Paid
EVERSHINE SOLVEX: ICRA Lowers Rating on INR10cr Loan to 'D'
HYDRIC FARM: Insolvency Resolution Process Case Summary
ISPAT PROFILES: Insolvency Resolution Process Case Summary
IVR PRIME IT: Insolvency Resolution Process Case Summary
J M CONSTRUCTIONS: ICRA Cuts Rating on INR5cr Loan to B+
KALYANALAKSHMI SHOPPING: Ind-Ra Lowers LT Issuer Rating to 'B'
KAYNES TECHNOLOGY: ICRA Cuts Rating on INR40cr Loan to 'D'
LOHIYA DEVELOPERS: ICRA Keeps 'B' on INR5cr Debt in Not Cooperating
MINING & CONSTRUCTION: Insolvency Resolution Process Case Summary
NANDYALA SATYANARAYANA: ICRA Cuts Rating on INR0.10cr Loan to B+
NAVKAR LIFESCIENCES: ICRA Withdraws B- Rating on INR19.75cr Loan
RAGHU RAMA: ICRA Reaffirms B+ Rating on INR12cr Cash Loan
RAKSHA MULTISPECIALITY: Insolvency Resolution Process Case Summary
REGEN POWERTECH: NLCT Starts Insolvency Process Against Firm
RICH FOOD: ICRA Assigns B+ Rating to INR10cr LT Loan
SALELINK ECOM: Insolvency Resolution Process Case Summary
SHIV METTALICKS: Ind-Ra Affirms BB- Issuer Rating, Outlook Stable
SHREYA BROADCASTING: ICRA Withdraws B+ Rating on INR5cr Loan
SHRI SODE: ICRA Keeps D on INR21cr Loan in Not Cooperating
SLN TECHNOLOGIES: ICRA Withdraws 'D' Rating on INR4.50cr Loan
SONEX INDUSTRIES: ICRA Lowers Rating on INR5cr Loan to B+
VISTAR METAL: Insolvency Resolution Process Case Summary
M A L A Y S I A
SCOMI ENERGY: Unit Defaults on Redemption of Bonds Worth MYR55MM
P A K I S T A N
PAKISTAN: Needs More Than an IMF Bailout to Fix Ailing Economy
P H I L I P P I N E S
AMA RURAL BANK: PDIC Seeks to Lift TRO on Bank's Closure
S I N G A P O R E
HYFLUX LTD: New Investor Offers to Buy Out SGD1.8BB of Debts
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A U S T R A L I A
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19 ROYAL ALBERT: First Creditors' Meeting Set for Dec. 31
---------------------------------------------------------
A first meeting of the creditors in the proceedings of 19 Royal
Albert Crescent Pty Ltd will be held on Dec. 31, 2019, at 11:00
a.m. at the offices of B&T Advisory, Level 4, at 26 Wharf Street,
in Brisbane, Queensland.
Travis Pullen of B&T Advisory was appointed as administrator of 19
Royal on Dec. 17, 2019.
ACTUS OPERATIONS: First Creditors' Meeting Set for Dec. 24
----------------------------------------------------------
A first meeting of the creditors in the proceedings of Actus
Operations One Pty Ltd will be held on Dec. 24, 2019, at 11:00 a.m.
at the offices of SM Solvency Accountants, Level 10/144, at Edward
Street, in Brisbane, Queensland.
Brendan Nixon of SM Solvency Accountants was appointed as
administrator of Actus Operations on Dec. 13, 2019.
FIVE STAR 2019-1: Fitch Assigns BB+ Rating on Cl. F Debt
--------------------------------------------------------
Fitch Ratings assigned ratings to Five Star 2019-1 Trust's
mortgage-backed pass-through floating-rate bonds. The issuance
consists of notes backed by a pool of first-ranking Australian
residential full-documentation mortgage loans originated by
Victorian Mortgage Group. The notes are issued by Perpetual Trustee
Company Limited in its capacity as trustee of Five Star 2019-1
Trust, which is a separate and distinct trust created under a
master trust deed.
RATING ACTIONS
Five Star 2019-1 Trust
Class A1 AU3FN0052254; LT AAAsf New Rating;
Class A2 AU3FN0052262; LT AAAsf New Rating;
Class B AU3FN0052270; LT AAsf New Rating;
Class C AU3FN0052288; LT Asf New Rating;
Class D AU3FN0052296; LT BBB+sf New Rating;
Class E AU3FN0052304; LT BBB-sf New Rating;
Class F AU3FN0052312; LT BB+sf New Rating;
Class G; LT NRsf New Rating;
Class H; LT NRsf New Rating
KEY RATING DRIVERS
Operational Risk: VMG is a non-bank financial institution
headquartered in Melbourne, Victoria, with a history dating back to
1946. Fitch undertook an onsite operational review and found that
the operations of the originator and servicer were comparable with
market standards and that there were no material changes that may
affect VMG's ongoing ability to undertake administration and
collection activities. VMG's collection timelines, policies and
procedures are in line with those of other conforming lenders in
Australia.
Asset Analysis: The 'AAAsf' weighted-average foreclosure frequency
(WAFF) of 15.5% is driven by the weighted-average (WA) unindexed
loan/value ratio (LVR) of 66.9% and, under Fitch's methodology,
investment loans of 47.7%. The 'AAAsf' weighted-average recovery
rate (WARR) of 47.0% is driven by the portfolio's WA indexed
scheduled LVR of 71.2% and the portfolio 'AAAsf' WA market value
decline of 59.7%.
Liability Analysis: Credit enhancement of 30.0% supports the class
A1 notes, 10.0% supports the class A2 notes, 7.4% supports the
class B notes, 5.0% supports the class C notes, 3.5% supports the
class D notes, 2.5% supports the class E notes and 1.5% supports
the class F notes. Structural features include a liquidity facility
sized at 2.0% of the class A1 to F note balances with a floor of
AUD570,000. The class A1 to F notes can withstand all relevant
Fitch stresses applied in its cash-flow analysis.
Macroeconomic Factors: Fitch expects stable mortgage performance
supported by sustained economic growth in Australia. Fitch
forecasts steady GDP growth of 1.8% for 2019 and 2.3% for 2020,
stable labour markets and low interest rates to support the Outlook
on the rated notes. The pool is concentrated geographically in
Victoria, reflecting VMG's history and operational focus in the
region, and the state government forecasts gross state product
growth of 2.75% over the financial year ending June 2020.
RATING SENSITIVITIES
Unanticipated increases in the frequency of defaults and loss
severity on defaulted receivables could produce loss levels higher
than Fitch's base case and are likely to result in a decline in
credit enhancement and remaining loss-coverage levels available to
the notes. Decreased credit enhancement may make certain note
ratings susceptible to potential negative rating action, depending
on the extent of the coverage decline. Hence, Fitch conducts
sensitivity analysis by stressing a transaction's initial base-case
assumptions.
Expected impact on note ratings of increased defaults:
Notes: A1 / A2 / B / C / D / E / F
Rating: AAAsf / AAAsf / AAsf / Asf / BBB+sf / BBB-sf / BB+sf
Increase defaults by 15%: AAAsf / AA+sf / AA-sf / A-sf / BBBsf /
BB+sf / BBsf
Increase defaults by 30%: AAAsf / AAsf / A+sf / A-sf / BBBsf / BBsf
/ BB-sf
Expected impact on note ratings of decreased recoveries:
Notes: A1 / A2 / B / C / D / E / F
Rating: AAAsf / AAAsf / AAsf / Asf / BBB+sf / BBB-sf / BB+sf
Reduce recoveries by 15%: AAAsf / AA+sf / AA-sf / A-sf / BBB-sf /
BBsf / B+sf
Reduce recoveries by 30%: AAAsf / AAsf / A+sf / BBBsf / BBsf / Bsf
/ < Bsf
Expected impact on note ratings of multiple factors:
Notes: A1 / A2 / B / C / D / E / F
Rating: AAAsf / AAAsf / AAsf / Asf / BBB+sf / BBB-sf / BB+sf
Increase defaults by 15% and reduce recoveries by 15%: AAAsf / AAsf
/ A+sf / BBB+sf / BB+sf / BB-sf / Bsf
Increase defaults by 30% and reduce recoveries by 30%: AAAsf / A+sf
/ BBB+sf / BB+sf / B+sf / < Bsf / < Bsf
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
FOX SYMES 2019-1: S&P Assigns BB+ Rating on Class E Notes
---------------------------------------------------------
S&P Global Ratings assigned its ratings to six classes of
residential mortgage-backed securities (RMBS) issued by Perpetual
Trustee Co. Ltd. as trustee of the Fox Symes Home Loans 2019-1 PP
Trust. Fox Symes Home Loans 2019-1 PP Trust is a securitization of
nonconforming residential mortgages originated by Fox Symes Home
Loans (Services) Pty Ltd.
The ratings reflect:
-- S&P's view of the credit risk of the underlying collateral
portfolio, including 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 that the credit support is sufficient to withstand
the stresses we apply. This credit support comprises note
subordination for the rated notes. In addition, the transaction
includes various mechanisms to utilize excess spread to provide
additional credit support.
-- S&P's expectation that the various mechanisms to support
liquidity within the transaction, including an amortizing liquidity
facility equal to 2.0% of the aggregate invested amount of the
rated notes on closing (subject to a floor of A$400,000), principal
draws, and a yield reserve, are sufficient under our stress
assumptions to ensure timely payment of interest.
-- That the extraordinary expense reserve of A$150,000, funded by
Fox Symes Home Loans (Management) Pty Ltd. before closing, is
available to meet extraordinary expenses. The reserve will be
topped up via excess spread if drawn.
RATINGS ASSIGNED
Class Rating Amount
(mil. A$)
A1 AAA (sf) 130.00
A2 AAA (sf) 47.00
B AA (sf) 7.00
C A (sf) 6.00
D BBB (sf) 4.00
E BB+ (sf) 2.00
F NR 4.00
NR--Not rated.
PROJECT SUNSHINE IV: Moody's Affirms B2 CFR, Outlook Stable
-----------------------------------------------------------
Moody's Investors Service affirmed the long-term corporate family
rating and foreign currency senior secured bank credit facility
rating for Project Sunshine IV Pty Limited at B2. The outlook is
stable.
RATINGS RATIONALE
The rating reflects Sensis' solid financial profile with low
leverage and healthy levels of free cash flow which have enabled
the company to reduce debt ahead of expectations.
The company's operating profile is weak, however, from the
structural decline of its directory business as consumers shift
from print to digital media, combined with the growth of internet
search engines. Moody's does not foresee a turnaround in the sector
and expect the value depletion of the business to continue.
Despite the secular decline, Moody's believes that Sensis will
continue to benefit from its market position as the largest
directories business in Australia with around 97% market share.
Moody's believes Sensis is able to cater to fragmented market
segments in remote locations and elderly customers that may be less
technologically savvy.
Moody's expects Sensis will continue to generate strong cash flows
over the next 12 months. However, the increase in cash flows will
come from reduced capital expenditure and cost savings, rather than
revenues which are declining.
Moody's expects adjusted Debt/EBITDA will remain below 2.0x over
the next 12-18 months, even after any debt refinancing. This
expectation reflects Sensis' modest capital spending requirements,
further cost reductions, and its ability and willingness to pay
down debt using its strong cash flow.
Sensis has adequate liquidity reflecting its expectation that the
company will continue to have the capacity to fund itself through
internally generated cash flow and cash balances. Moody's expects
these sources to be sufficient to meet the capital expenditure and
mandatory debt repayment requirements during the fiscal 2019.
The rating also takes into consideration environmental, social and
governance factors. Sensis is exposed to social risks stemming from
evolving demographic and social trends, and changing consumer
services. The yellow pages industry has been impacted by changing
demographics as younger people are more likely to use social media
and search engines to search for listings.
While Sensis is owned by private equity, Moody's views the track
record of maintaining low leverage since the initial rating was
assigned in February 2014 as supportive of the governance
assessment. In addition, the rating also takes into account social
risk from potential data privacy breaches and cyber risk.
WHAT COULD CHANGE THE RATING
Upward pressure on the rating is unlikely given the risks
associated with the structural decline of the sector.
The rating could face negative pressure in the event that the
company's revenue and earnings deteriorate faster than its current
expectations, or if the company fails to maintain Debt/EBITDA below
2x on a sustained basis due to debt-funded shareholder-friendly
initiatives or operational weakness.
BACKGROUND
Project Sunshine IV Pty Ltd is the 100% owner of Sensis Pty Ltd,
which is in turn Australia's leading provider of telephone
directory services. Sensis prints and distributes the White Pages
and Yellow Pages directories in Australia, as well as operate
various on-line businesses, including the on-line versions of both
these print directories
The principal methodology used in these ratings was Media Industry
published in June 2017.
RALAN GROUP: Creditors Vote for Founder's DOCA
----------------------------------------------
The Urban Developer reports that a group of creditors from the
collapsed Ralan Group have accepted a plan by the stricken
apartment developer's founder William O'Dwyer to launch a deed of
company arrangement (DOCA).
Ralan, which was building on the Gold Coast and Sydney, recently
collapsed owing funds of $564 million to more than 1,500 secured
and non-secured creditors.
According to the report, the proposed deed of company arrangement
would allow victims to deduct the deposits owed to them from the
purchase price of new units and back a new scheme to buy more
apartments from a separate, unnamed developer with the promise of
discounted prices.
The Urban Developer relates that Grant Thornton joint
administrators Said Jahani, Philip Campbell-Wilson and Graham
Killer recommended creditors vote to wind up the company which owed
its lenders, bankers, trade creditors and buyers—many of Chinese
background, who released their down payments for apartments on the
Gold Coast and Sydney.
The Urban Developer says the majority of creditors voted in favor
of liquidation for The Orchid at Arncliffe a 318-apartment
residential project in Sydney.
However, the majority of creditors voted in favor of the deed for
Ralan Group's Gold Coast companies, which are overseeing its Ruby
development.
The rest of the group's 50 companies - mostly inactive - were also
in liquidation, according to the report.
"These companies now have 15 days to sign the Deed of Company
Arrangement giving effect to the outcome of today's vote," the
report quotes Grant Thornton national managing partner Said Jahani
as saying.
However, for one of the deed's Gold Coast entities, Ralan Paradise
No 2 Pty Limited, a split vote meant an intervening vote from
administrators, the report notes.
For this entity: 112 creditors owed AUD60,307 voted for the deed
but 103 creditors owed AUD87,720 voted against the deed, the report
discloses.
"Through our investigation it has become abundantly clear that
Ralan has been unable to pay its creditors for some time," Jahani,
as cited by Urban Developer, said. "By liquidating the majority of
companies in the Group, we can attempt to recoup as much as
possible for creditors'—based on the potential actions available
to a liquidator pursuant to the Corporations Act."
According to the Urban Developer, Grant Thornton noted that
creditors of the DOCA would now place the onus on Mr. O'Dwyer for
him to reveal the identity of the mystery developer.
Mr. O'Dwyer has refused to name its third-party developer "Mr X"
despite demands from creditors, the report relats.
The Urban Developer adds that Jahani warned that even though a
portion of the deed was successfully executed, it would be a long
time before buyers would see their money as sites have yet to be
procured or planned.
After the signing of the DOCA in 15 days, Ralan's Gold Coast buyers
will have their deposits owed deducted from the future purchase
prices of new units, the Urban Developer adds.
About Ralan Group
The Ralan Group specializes in the development, marketing and
management of residential and commercial property.
Said Jahani, Philip Campbell-Wilson and Graham Killer were
appointed Voluntary Administrators of the Group by a resolution of
the Group's directors on July 30, 2019.
On Aug. 1, 2019, Jason Tracey, Timothy Heenan and Salvatore Algeri
of Deloitte were appointed Joint and Several Receivers and Managers
of Ralan Paradise Holdings Pty Ltd, Ralan Paradise No. 1 Pty Ltd,
Ralan Paradise No. 2 Pty Ltd, Ralan Paradise No. 3 Pty Ltd, Ralan
Budds Beach No 1 Pty Ltd and Ruby Apartments Pty Ltd.
On Aug. 5, 2019, Ken Whittingham was appointed Receiver and Manager
of Ralan Paradise Resort Pty Ltd and Ralan Paradise No 4 Pty Ltd.
SOUTH PELAGIC: First Creditors' Meeting Set for Dec. 31
-------------------------------------------------------
A first meeting of the creditors in the proceedings of South
Pelagic Holdings Pty Ltd, trading as Seafish Tasmania, will be held
on Dec. 31, 2019, at 11:00 a.m. at the offices of Pitcher Partners,
Level 16, Tower 2, Darling Park, at 201 Sussex Street, in Sydney,
NSW.
Paul Gerard Weston of Pitcher Partners was appointed as
administrator of South Pelagic on Dec. 17, 2019.
SPG PROJECTS: First Creditors' Meeting Set for Dec. 27
------------------------------------------------------
A first meeting of the creditors in the proceedings of SPG Projects
Pty Ltd will be held on Dec. 27, 2019, at 12:00 p.m. at the offices
of KPMG, Tower Three, International Towers, at 300 Barangaroo
Avenue, in Sydney, NSW.
Ryan Reginald Eagle and Gayle Dickerson of KPMG were appointed as
administrators of SPG Projects on Dec. 14, 2019.
SWC MANAGEMENT: First Creditors' Meeting Set for Dec. 31
--------------------------------------------------------
A first meeting of the creditors in the proceedings of:
-- SWC Management Pty Ltd
-- Baron Forge Constructions Pty Ltd
-- Baron Forge Contractors Pty Ltd
-- Roman Glass Pty Ltd
-- The Edge Glass (Aust) Pty Ltd
-- Baron Forge Equipment Pty Ltd
-- Essential Stone Pty Ltd
-- GFA Enterprises Pty Ltd
-- Nianiakas Pty Ltd
-- Paz Stone Pty Ltd
will be held on Dec. 31, 2019, at the offices of KordaMentha:
VIC
Rialto South Tower, Level 31
525 Collins Street
Melbourne, Victoria
Time: 11:00 a.m.
NSW
Chifley Tower, Level 5
2 Chifley Square
Sydney, New South Wales
Time: 11:00 a.m.
QLD
Level 14, 12 Creek Street
Brisbane, Queensland
Time: 10:00 a.m.
Craig Peter Shepard, Andrew Knight and Scott Langdon of KordaMentha
were appointed as administrators of SWC Management, et. al., on
Dec. 17, 2019.
TOTAL BATHROOM: First Creditors' Meeting Set for Dec. 27
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Total
Bathroom Centre Pty. Limited will be held on Dec. 27, 2019, at
10:30 a.m. at the offices of Mackay Goodwin, Level 2, at 10 Bridge
Street, in Sydney, NSW.
Grahame Ward and Domenic Calabretta of Mackay Goodwin were
appointed as administrators of Total Bathroom on Dec. 13, 2019.
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C H I N A
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GIONEE COMMUNICATION: Creditor Woes Deepen as Liquidation Hits Snag
-------------------------------------------------------------------
Qu Hui and Timmy Shen at Caixin Global report that bankrupt
smartphone-maker Gionee Communication Equipment Co. Ltd. is
illegally holding shares in Tencent-backed online bank WeBank,
complicating efforts to liquidate the once high-flying tech group
whose debts have been estimated at between CNY17.4 billion (US$2.49
billion) and CNY21 billion.
When bankruptcy administrators were appointed to Gionee in December
2018, they found the Shenzhen-based company held 90 million shares
in WeBank, headquartered in the same city, which were bought for
CNY90 million when the lender was set up in 2014, Caixin recalls.
That amounted to a 3% stake that was estimated to be worth CNY3.1
billion at the end of 2018 and was seen as an important asset that
could be sold to pay off Gionee's creditors.
However, it has now transpired that 72 million of the shares are
not actually owned by Gionee but were being held on behalf of two
small investment and business management companies - Shenzhen Huaan
and Guangzhou Xingyuan, the report says. Under Chinese law,
shareholders in commercial banks are not allowed to entrust their
shares to a third party, Caixin notes.
According to the report, the true ownership of the WeBank shares
came to light during the liquidation process after administrators
set a March deadline for creditors, from lenders to suppliers, to
submit the size of their claims against the company.
Caixin relates that the two shareholders tried to retrieve their
holdings to prevent them from being used to repay Gionee's debt. In
April, they applied to bankruptcy liquidators to request that
Gionee help register a change of ownership of the shares into their
names or those of other appointed third parties so that they could
reclaim ownership of their 72 million WeBank shares, according to a
report by the liquidators dated Nov. 22 and obtained by Caixin.
That amounts to 2.4% of the bank's share capital and was worth
CNY2.5 billion at the end of 2018, based on a valuation of WeBank
at the time. Gionee's own shares were worth just CNY600 million,
Caixin discloses.
Caixin says the administrators had planned to approve the request
of the two shareholders, but have been challenged by Gionee's
creditors and have now set a deadline of one month for creditors to
review the relevant materials, according to the report.
Sources close to the matter have told Caixin that some creditors
have already sent objections to the liquidators' plan to approve
the share retrieval. They argue that the shareholding was illegal
in the first place and that the sum involved is significant enough
to greatly harm creditors.
Gionee was declared bankrupt by a court in Shenzhen on Dec. 10,
2018, after one of its creditors applied for the company to be
liquidated, recalls Caixin. Under a bankruptcy reorganization plan
announced earlier that month as the company fought to avoid being
liquidated, a consultant hired by Gionee said it could repay some
of debts over the subsequent five years if WeBank went public and
Gionee sold its 3% shareholding.
This latest setback further deepens Gionee's financial woes and
makes it less likely creditors will be able to recover what they
are owed, says Caixin. Founded in 2002 by businessman Liu Lirong,
Gionee was one of China's earliest mobile phone brands. It produced
a record 40 million cellphones in 2016, making it the country's
fifth-largest manufacturer. But its finances began to deteriorate
as competition intensified in China's smartphone market and it
embarked on a debt-fuelled expansion, making investments in
financial institutions and property, Caixin relates.
Liu, who held a 41.4% stake in Gionee, spent much of 2018
scrambling to find investors and a white knight to save the
business, recalls Caixin. But his efforts failed, and as the
company's financial problems mounted it was cut off by its
suppliers who applied to the courts to force the company into
bankruptcy reorganization, Caixin relates.
An initial review of the business by the bankruptcy liquidators
found that Gionee had total assets of about CNY3.84 billion and
liabilities of CNY9.64 billion at the end of 2018, Caixin
discloses. But the true scale of its liabilities may be much
higher. At the end of March 2019, some 324 creditors reported being
owed a total of CNY17.4 billion, according to another review by the
liquidators, Caixin relays.
Based in Shenzhen, China, Gionee Communication Equipment Company
Ltd. manufactured cellular telephones.
The Shenzhen Intermediate People's Court accepted the bankruptcy
liquidation application filed by Huaxing Bank against the company
on Dec. 10, 2018.
ICBC: S&P Reinstates 'BB' Rating on EUR600MM Preference Shares
--------------------------------------------------------------
S&P Global Ratings said that it has reinstated its 'BB' long-term
foreign-currency issue rating on the EUR600 million in preference
shares issued by Industrial and Commercial Bank of China Ltd.
(A/Stable/A-1). S&P withdrew the issue rating in error on Dec. 11,
2019.
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I N D I A
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ADITYA RICE: ICRA Reaffirms B+ Rating on INR9cr Cash Loan
---------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of Aditya
Rice Industries (ARI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based-
Cash credit 9.00 [ICRA]B+ (Stable); Reaffirmed
Unallocated
Limits 4.00 [ICRA]B+ (Stable); Reaffirmed
Rationale
The rating considers ARI's small scale of operations with intense
competition in the rice milling industry, restricting its operating
margins. The rating considers ARI's moderate financial risk
profile, characterised by TOL/TNW of 1.8 times as on March 31, 2019
and stretched coverage indicators for FY2019. The rating factors in
the agroclimatic risks, which can affect the availability of paddy
in adverse weather conditions and the risks arising from the
partnership nature of the firm.
The rating, however, positively factors in the extensive track
record of the promoters in the rice milling industry. The rating
considers the favourable demand prospects of the industry with
India being the second largest producer and consumer of rice
internationally, which augurs well for the firm. The Stable outlook
reflects ICRA's belief that ARI will continue to benefit from the
extensive experience of its partners in the rice milling industry.
Key rating drivers and their description
Credit strengths
Significant experience of partners in rice milling and trading
business – The partners have established presence in the rice
milling industry with over two decades of experience, resulting in
an established relationship with the customers.
Favourable demand prospects for rice – The demand prospects of
the rice industry are likely to remain good as rice is a staple
food grain and India is the world's second largest producer and
consumer of rice.
Credit challenges
Small scale of operations – ARI's scale of operations remained
small with an installed capacity of 8 MT of paddy per annum and an
operating income (OI) of INR34.0 crore in FY2019, limiting its
financial flexibility.
Moderate financial profile characterised by moderate coverage
indicators – ARI has a moderate financial profile, characterised
by a TOL/TNW of 1.8 times as on March 31, 2019 and stretched
coverage indicators with an interest coverage ratio of 1.7 times
and NCA/total debt ratio of 18% in FY2019.
Intense competition in industry – The rice milling industry is
characterised by stiff competition from many organised and
unorganised players, which impacts its margins.
Industry susceptible to agro-climatic risks - The rice-milling
industry is susceptible to agro-climatic risks, which can affect
the availability of paddy in adverse weather conditions.
Risk related to partnership nature of firm - ARI is exposed to the
risks inherent to the partnership nature of the firm, including the
capital withdrawal risk.
Liquidity position: Adequate
ARI's working capital requirements increased in the current year
given the healthy revenue growth (estimated), leading to negative
retained cash flows. However, ARI's liquidity position is adequate
with sufficient cushion in working capital limits, as working
capital utilisation stood at a moderate level of ~59%. The working
capital limits were enhanced to INR9.0 crore in June 2019 from
INR5.0 crore. The firm does not have any major capex plans or
repayment obligations in the near term.
Rating sensitivities
Positive triggers: ICRA may upgrade ARI's rating if the company
demonstrates a sustained improvement in its revenues and margins.
Specific credit metrics that may lead to an upgrade of ARI's rating
include interest coverage ratio improving to more than 2 times on a
sustainable basis.
Negative triggers: Negative pressure on the rating may arise if a
decline in revenues or accruals impacts its liquidity position.
Specific credit metrics that may lead to a rating downgrade include
interest coverage ratio reducing to below 1.3 times.
ARI was founded in 2010 as a partnership firm and is involved in
the milling of paddy and produces raw and boiled rice. The firm
started its operations from February 2012. The firm has a milling
unit in Settipalem village of Nalgonda district of Telangana with
an installed capacity of 8 tonnes per hour.
ARI has reported an operating income (OI) of INR34.0 crore and net
profit of INR0.1 crore in FY2019 against an OI of INR37.1 crore and
a net profit of INR0.1 crore in FY2018.
AMTEK AUTO: Lenders Seek to Intervene in Insolvency Case
--------------------------------------------------------
Financial Express reports that various banks, including Kotak
Mahindra, on Dec. 9 moved the Supreme Court seeking to intervene in
the Amtek Auto insolvency case. In its intervention application,
Kotak, together with merged bank ING Vysya Bank, told a Bench of
Justice Arun Mishra that its claim for INR244 crore should be
entertained now as the liquidation proceedings have been stayed
against the bankrupt company, the report says.
FE relates that the Bench posted the bank's plea for further
hearing in January. While the apex court had on September 6 stayed
the NCLAT decision ordering liquidation of the debt-ridden firm, it
ordered the committee of creditors (CoC) earlier this month to
invite fresh bids for Amtek Auto within a month.
According to the report, the order had saved the company from
liquidation after no resolution was found within the 270-day
deadline, as UK-based Liberty House, the successful bidder, backed
out citing technical reasons.
FE says the National Company Law Appellate Tribunal had not decided
its claim plea on merits as the appellate tribunal was of the view
that since Amtek Auto had been ordered to be liquidated, Kotak
should now file its fresh claim before the liquidator, the
application stated, adding that the apex court is now deciding the
case and the decision will have a bearing on its claims.
Kotak said it and the merged bank had extended financial facilities
to Amtek Auto and Amtek Crankshafts in 2014 and the loan given to
the debt-laden firm was declared as NPA as per the RBI guidelines,
FE relays. While Kotak in August 2017 had filed its total claim for
over Rs 244 crore, the resolution professional (RP) had accepted
claim for only Rs 37.46 crore and remained silent on the other Rs
201-crore claim, the report notes.
FE adds that the RP had later rejected the bank's claim on the
ground that the invocation of corporate guarantee after the
insolvency proceedings was initiated was contrary to the provisions
of IBC and a claim based on an uninvoked guarantee can 'at best' be
treated as a contingent claim without entitlement to voting
rights.
About Amtek Auto
Based in India, Amtek Auto Limited (BOM:520077) --
http://www.amtek.com/aal.php-- engages in automotive components
manufacturing and commercial sales. The Company is engaged in
forging, grey and ductile iron casting, gravity and high pressure
aluminum die casting and machining and sub-assembly. It has a
product portfolio with a range of engineered components, including
flywheel ring gears, machining, forging, casting aluminum and
casting iron. The Company supplies components for passenger cars,
light and heavy commercial vehicles, 2/3 wheelers, light weight
commercial vehicles and heavy weight commercial vehicles. The
Company has facilities across India, the United Kingdom, Germany,
Brazil, Italy, Mexico, Hungary and the United States. The Company
also manufactures components for non-auto sectors, such as the
railways, specialty vehicles, aerospace, agricultural and heavy
earth moving equipment.
In July 2017, NCLT had admitted insolvency proceedings for Amtek
Auto initiated by a consortium of banks led by Corporation Bank.
Amtek was featured on the first list of 12 companies that were
referred by the RBI for initiating insolvency process in 2017.
ASA PRODUCTION: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: ASA Production & Enterprises Private Limited
501, Jagdama, A-2
Link Road, KanchPada
Movie time Theatre Compound
Malad West Mumbai
Mumbai City
Maharashtra 400064
India
Insolvency Commencement Date: November 13, 2019
Court: National Company Law Tribunal
Estimated date of closure of
insolvency resolution process: May 11, 2020
Insolvency professional: CA Amar Agrawal
Interim Resolution
Professional: CA Amar Agrawal
Plot No. 1 Girupal BhagwagharLayot
Gali No. 3
Opposite Ajit Bakery Dharampeth
Shankar Nagar Nagpur 440010
Maharashtra
E-mail: ajayamarca@yahoo.com
- and -
Plot No. 377, 3rd Floor "Nakshatra"
Opposite Old Wockhardt Hospital
Gandhinagar Nagpur 440010
E-mail: nirpltd@gmail.com
Last date for
submission of claims: December 4, 2019
ASHIRVAD INDUSTRIES: ICRA Keeps 'B' Rating in Not Cooperating
-------------------------------------------------------------
ICRA has continued the long-term and short-term ratings for the
bank facilities of Ashirvad Industries & Infrastructure (AII to the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B(Stable)/[ICRA]A4 ISSUER NOT COOPERATING."
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 0.40 [ICRA]B (Stable) ISSUER NOT
Term Loan COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Fund based- 1.50 [ICRA]B (Stable) ISSUER NOT
Cash Credit COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Non-fund based 10.00 [ICRA]A4 ISSUER NOT
Bank Guarantee COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
Established in 1998 as a partnership firm, Ashirvad Industries &
infrastructure is in to cotton ginning business and act as a toll
collection agent on state and national highways in Gujarat. In
addition to this, the firm has also commenced trading in currency
derivative instruments from FY2015 onwards. AII's manufacturing
facility is located at Rajkot in Gujarat and is equipped with 18
ginning machines and 1 pressing machine with total production
capacity to manufacture ~200 cotton bales per day. Currently, the
firm is operating two toll collection projects in the state of
Gujarat. The partners have been associated with toll collection
activity for over fifteen years with number of projects
successfully completed.
COCHIN BRIDGE: ICRA Keeps D on INR9.11cr Loan in Not Cooperating
----------------------------------------------------------------
ICRA has continued the long-term rating for the bank facilities of
Cochin Bridge Infrastructure Company Limited (CBICL) in the 'Issuer
Not Cooperating' category. The rating is now denoted as "[ICRA]D
ISSUER NOT COOPERATING."
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 9.11 [ICRA]D ISSUER NOT COOPERATING;
Term Loan Rating continues to be in
'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
CBICL is a Special Purpose Vehicle (SPV) incorporated in October
1999 to construct and operate a new bridge over the Matancherry
channel on BOT basis in Kochi connecting Fort Kochi and
Mattancherry with Willingdon Island. CBICL is a 97.66% subsidiary
of Gammon Infrastructure Projects Limited (GIPL, the infrastructure
holding company of the Gammon group), with the balance held by
Cochin Port Trust. Construction of the bridge was completed ten
months ahead of schedule. The company has no operational cash flows
as the toll collection was suspended from April 2014.
DHURIA RICE: ICRA Keeps B on INR7.5cr Cash Credit in NonCooperating
-------------------------------------------------------------------
ICRA has continued the long-term ratings for the bank facilities of
Dhuria Rice Mills (DRM) to the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]B (Stable) ISSUER NOT
COOPERATING."
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 7.50 [ICRA]B (Stable) ISSUER NOT
Cash Credit COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
DRM was established in the year 1978 as a partnership firm with
Ashok Kumar, Krishna Devi and Surinder Kumar as partners. In the
year 2007 partnership was re constituted with Mr. Arun Kumar, Mr.
Ashok Kumar and Krishna Devi as partners. In 2012 the partnership
firm was reconstituted again with Mr. Ashok Kumar and Mr. Arun
Kumar as partners in equal ratios. All the partners are actively
engaged in the management of the company. DRM is engaged in
processing and trading of non-basmati rice in the domestic markets
and to exporters in India. Head office as well as the manufacturing
plant of the company is located at Fazilka, Punjab. The plant has a
milling capacity of 2 tonnes per hour of paddy.
EAST HYDERABAD EXPRESSWAY: ICRA Keeps D Rating in Not Cooperating
-----------------------------------------------------------------
ICRA has continued the long-term rating for the bank facilities of
East Hyderabad Expressway Limited (EHEL) in the 'Issuer Not
Cooperating' category. The rating is now denoted as "[ICRA]D ISSUER
NOT COOPERATING."
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 119.49 [ICRA]D ISSUER NOT COOPERATING;
Term Loan Rating continues to remain under
'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
East Hyderabad Expressway Limited (EHEL) is a Special Purpose
Vehicle (SPV) incorporated in July 2007 for undertaking the design,
construction, development, finance, and Operation and Maintenance
(O&M) of an 8-lane access-controlled expressway. The project is
spread over 13 km, as part of Phase-2A of the Hyderabad Outer Ring
Road (ORR) project on a BOT (annuity) basis. The project is owned
by the Hyderabad Metropolitan Development Authority (HMDA, a
Government of Telangana undertaking). ITNL holds 74% of EHEL's
equity, while the balance is held by KMC Construction Limited (10%)
and KMC Infratech Limited (16%).
ESSAR STEEL: Promoters Not Off the Hook Yet After Most Dues Paid
----------------------------------------------------------------
The Times of India reports that promoters of Essar Steel are not
yet off the hook despite banks getting large parts of their dues
back. The Lakshmi Mittal-owned metals group ArcelorMittal last
weekend transferred over INR39,000 crore to lenders for the steel
company he won after a legal battle that lasted over two years.
Another INR2,500 crore will be repaid from the steel company's
internal accruals, the report says.
Overall, after paying close to INR1,000 crore to operational
creditors, lenders will get a little over INR41,000 crore as
against more than INR49,000 crore of claims that were admitted by
the National Company Law Tribune (NCLT), according to TOI.
TOI relates that the shortfall poses fresh challenges to Essar's
erstwhile promoters, the Ruias. An amendment to the insolvency law
that came into effect from December 1 allows lenders to initiate
insolvency proceedings against the guarantors of a borrower. Essar
promoter's Prashant Ruia and Ravi Ruia are understood to have
issued personal guarantees for bank loans to Essar.
According to the report, a lender said while banks had earlier
sought recovery on the basis of this guarantee in the debt recovery
tribunal, the amended law allows the proceedings in the NCLT, which
has a time-bound framework. "Under the amended law, lenders can
initiate insolvency proceedings against individual guarantors in
the NCLT," the report quotes Nikhil Shah, MD of Alvarez and Marsal
- a firm that specialises in resolution of troubled businesses, as
saying.
Shah said the law provides for parallel proceedings against
guarantors, who cannot defend themselves on the grounds that
lenders have not exhausted recovery options with the borrower, TOI
relays. "Even if lenders effect a recovery under the bankruptcy
process, they can still initiate insolvency proceedings against the
guarantor to the extent of shortfall in the recovery," he said.
It is not clear how successful banks will be in recovering through
personal guarantees, given that the provision has never been
tested, the report notes. Also, the recovery will be limited to
assets directly under the control of the guarantor and excludes
family trusts.
About Essar Steel
Incorporated in 1976, Essar Steel India Ltd. is a part of the Essar
Group and is having 10 MTPA integrated steel manufacturing
facilities at Hazira, Gujarat and iron ore beneficiation and
pelletisation facilities in Paradeep, Odisha (12 mtpa) and Vizag,
Andhra Pradesh (8 mtpa). The company also owns and operates two
iron ore slurry pipelines -- one each in Odisha (Dabuna to Paradip)
and Andhra Pradesh (Kirandul-Vizag), which transport the iron ore
slurry from the beneficiation plant (located near the iron ore
mines in Dabuna and Kirandul) to the pellet plant (located near the
Paradip and Vizag ports). A large portion of the iron ore pellets
produced are intended for captive consumption by ESIL's steel plant
at Hazira for cost optimization.
The National Company Law Tribunal (NCLT) - Ahmedabad Bench admitted
Essar Steel's insolvency case on Aug. 2, 2017.
Satish Kumar Gupta of Alvarez and Marsal India has been appointed
as interim resolution professional upon the suggestion of State
Bank of India (SBI).
Essar Steel owes more than INR45,000 crore to lenders, of which
INR31,671 crore had already been declared as non-performing as of
March 31, 2016, The Economic Times disclosed. The SBI-led
consortium of 22 creditors accounts for 93% of this amount. Essar
Steel owes $450.67 million to Standard Chartered Bank (SCB) in
debt.
EVERSHINE SOLVEX: ICRA Lowers Rating on INR10cr Loan to 'D'
-----------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of
Evershine Solvex Private Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 10.00 [ICRA]D ISSUER NOT COOPERATING;
Fund Based/ Rating downgraded from [ICRA]BB-
CC (Stable) and continues to remain
under 'Issuer Not Cooperating'
category
Long Term- 4.00 [ICRA]D ISSUER NOT COOPERATING;
Fund Based Rating downgraded from [ICRA]BB-
TL (Stable) and continues to remain
under 'Issuer Not Cooperating'
category
Rationale
The rating downgrade reflects Delayed in Debt Servicing. The rating
is based on limited information on the entity's performance since
the time it was last rated in September 2018. The lenders,
investors and other market participants are thus advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity,
despite the downgrade.
As part of its process and in accordance with its rating agreement
with Evershine Solvex Private limited, ICRA has been trying to seek
information from the entity so as to monitor its performance, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 1, 2016, ICRA's Rating Committee has taken a rating
view based on the best available information.
Key rating drivers and their description
Credit strengths NA
Credit challenges
There has been delays in debt as mentioned in care rationale.
Liquidity position: Weak
Evershine Solvex Private Limited liquidity profile is weak as
reflected by irregularities in debt servicing by entity
Evershine Solvex Private Limited was incorporated in 1984 by Mr.
Harish Kalra. The company is also promoted by the Kalra family. The
company is engaged in the extraction of crude rice bran oil from
rice bran at its manufacturing facility in Mukstar, Punjab. The
plant has a total installed capacity of 300 metric tonnes per day.
The company procures rice bran from millers in the nearby regions
of Haryana and Punjab.
HYDRIC FARM: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Hydric Farm Inuts Limited
Flat No. 2 First Floor
F-50 B Madhu Vihar Extension
Patpar Ganj, New Delhi
DL 110091
IN
Insolvency Commencement Date: November 20, 2019
Court: National Company Law Tribunal, Kanpur Bench
Estimated date of closure of
insolvency resolution process: May 23, 2020
Insolvency professional: Mr. Aditya Agrawal
Interim Resolution
Professional: Mr. Aditya Agrawal
3A/105 Azad Nagar
Kanpur 208002
E-mail: caaditya65@gmail.com
ipadtiyahydric@gmail.com
Last date for
submission of claims: December 16, 2019
ISPAT PROFILES: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Ispat Profiles India Limited
Park Plaza
71, Park Street
Kolkata 700016
West Bengal
Insolvency Commencement Date: November 28, 2019
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: May 26, 2020
(180 days from commencement)
Insolvency professional: Rajiv Kumar Agarwal
Interim Resolution
Professional: Rajiv Kumar Agarwal
7, Grant Lane
Room No. 317, 3rd Floor
Kolkata 700012
E-mail: rajiv@kvrassociates.in
cirp.ispatprofile@gmail.com
Last date for
submission of claims: December 16, 2019
IVR PRIME IT: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: IVR Prime IT.SEZ Private Limited
560 G.T. Road
1st Floor, Shadara
Opposite UCO Bank Delhi
East Delhi DL 110032
IN
Insolvency Commencement Date: September 19, 2019
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: March 17, 2020
Insolvency professional: Mr. Kashi Viswanathan Sivaraman
Interim Resolution
Professional: Mr. Kashi Viswanathan Sivaraman
Flat No. 204, Block-Menka
V3s Indralok, Plot No. GH-1
Nyay Khand-1, Indirapuram
Ghaziabad, Uttar Pradesh 201014
E-mail: sivarita68@yahoo.com
- and -
E-10A, Kailash Colony
Greater Kailash-1
New Delhi, Delhi 110048
E-mail: ivrprime@aaainsolvency.com
sivaraman@aaainsolvency.com
Last date for
submission of claims: October 8, 2019
J M CONSTRUCTIONS: ICRA Cuts Rating on INR5cr Loan to B+
--------------------------------------------------------
ICRA has downgraded the ratings on certain bank facilities of J M
Constructions Company, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.00 [ICRA]B+(Stable) ISSUER NOT
Fund Based- COOPERATING; Rating downgraded
Cash Credit from [ICRA]BB- (Stable) and
moved to 'Issuer Not
Cooperating' category
Short Term- 0.50 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Moved to 'Issuer
Not Cooperating' category
Long Term/ 9.00 [ICRA]B+(Stable)/[ICRA]A4
Short Term- ISSUER NOT COOPERATING;
Non Fund Based Long term rating downgraded
from [ICRA]BB- (Stable) and
Moved to 'Issuer Not
Cooperating' category
Rationale
The rating downgrade is because of lack of adequate information
regarding J M Constructions Company performance and hence the
uncertainty around its credit risk. ICRA assesses whether the
information available about the entity is commensurate with its
rating and reviews the same as per its "Policy in respect of
non-cooperation by the rated entity". The lenders, investors and
other market participants are thus advised to exercise appropriate
caution while using this rating as the rating may not adequately
reflect the credit risk profile of the entity, despite the
downgrade.
As part of its process and in accordance with its rating agreement
with J M Constructions Company, ICRA has been trying to seek
information from the entity so as to monitor its performance, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 1, 2016, ICRA's Rating Committee has taken a rating
view based on
the best available information.
J M Constructions Company (JMCC) is a partnership firm founded in
April 2009 by late Mr. Md. Junaid Ahmed and his family members. The
firm is recognised as a Class-1 contractor by the Karnataka Public
Works Department (PWD) in 1989 (under proprietorship) and is
involved in the business of executing civil works for various
municipalities and other urban and industrial development
departments for the Government of Karnataka.
KALYANALAKSHMI SHOPPING: Ind-Ra Lowers LT Issuer Rating to 'B'
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Kalyanalakshmi
Shopping Mall's (KLSM) Long-Term Issuer Rating to 'IND B' from 'IND
B+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR117.5 mil. (increased from INR100 mil.) Fund-based working
capital limits Long-term downgraded, Short-term affirmed with
IND B/Stable/IND A4 rating; and
-- INR20 mil. Proposed fund-based working capital limits
Withdrawn (the company did not proceed with the instrument as
envisaged).
KEY RATING DRIVERS
Liquidity indicator – Poor: The downgrade reflects KLSM's
overutilization of its working capital facility (average of 101%)
over the 12 months ended October 2019. The cash flow from
operations deteriorated to negative INR14.3 million in FY19 (FY18:
negative INR12.9 million) due to an increase in working capital
requirements. KLSM's working capital cycle elongated to 196 days in
FY19 (FY18: 187 days), driven by an increase in inventory holding
days. The free cash flow remained negative at INR33.0 million in
FY19 (FY18: negative INR16.2 million). At FYE19, KLSM had cash of
INR3.7 million.
The ratings continue to be constrained by KLSM's weak credit
metrics even though interest coverage (operating EBITDA/gross
interest expense) improved slightly to 1.1x in FY19 (FY18: 1.0x) on
a marginal improvement in absolute EBITDA. Net leverage (adjusted
net debt/operating EBITDAR) deteriorated to 5.5x in FY19 (FY19:
5.0x) due to an increase in working capital requirements and higher
long-term (unsecured) borrowings resulting in a rise in net
borrowings to INR205.6 million (INR147.7 million).
The ratings are also constrained by KLSM's continued small scale of
operations, despite an increase in revenue to INR346.4 million in
FY19 (FY18: INR314.2 million) due to the addition of a new shopping
mall operational in October 2018 at Warangal City. As of 2QFY20,
the company booked revenue of INR302.65 million.
KLSM's EBITDA margin remained average despite improving to 7.7% in
FY19 (FY18: 7.1%) due to a substantial increase in the revenue from
the low-margin trading segment. The return on capital employed was
14% in FY19 (FY18: 15%).
The ratings, however, are supported by KLSM's partners' experience
of over two decades in garment trading and the location of the mall
in a prime area, i.e. Warangal, Telangana.
RATING SENSITIVITIES
Negative: A further stretch in the liquidity position, along with a
decline in the revenue or EBITDA, resulting in deterioration in the
credit metrics on a sustained basis, could lead to a negative
rating action.
Positive: An improvement in the liquidity position, along with
substantial growth in the revenue and EBITDA margin, leading to an
improvement in the credit metrics, could lead to a positive rating
action.
COMPANY PROFILE
KLSM was established in 2011 as a partnership firm. The firm is
engaged in the trading of ready-made garments. It has one outlet in
Warangal, Telangana.
KAYNES TECHNOLOGY: ICRA Cuts Rating on INR40cr Loan to 'D'
----------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Kaynes
Technology India Private Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term: 40.00 [ICRA]D ISSUER NON COOPERATING;
Fund based downgraded from [ICRA]BB+
facilities (Stable); Ratings continue to
remain in 'Issuer Not
Cooperating' category
Long term: 7.95 ICRA]D ISSUER NON COOPERATING;
Fund based downgraded from [ICRA]BB+
facilities– (Stable); Ratings continue to
Term Loan remain in 'Issuer Not
Cooperating' category
Long term: (28.00) ICRA]D ISSUER NON COOPERATING;
Interchangeable downgraded from [ICRA]BB+
(Stable); Ratings continue to
remain in 'Issuer Not
Cooperating' category
Short term– 38.05 ICRA]D ISSUER NON COOPERATING;
Fund based downgraded from [ICRA]A4+;
Facilities Ratings continue to remain in
'Issuer Not Cooperating'
Category
Short term: (28.00) ICRA]D ISSUER NON COOPERATING;
Interchangeable downgraded from [ICRA]A4+;
Ratings continue to remain in
'Issuer Not Cooperating'
Category
Rationale
The rating downgrade factors in the delay in debt-servicing, as
confirmed by the banker. ICRA has limited information on the
entity's performance since the time it was last rated with
information in January 2019.
As part of its process and in accordance with its rating agreement
with Kaynes Technology India Private Limited, ICRA has been trying
to seek information from the entity so as to monitor its
performance, but despite repeated requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with SEBI's Circular No.
SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's Rating
Committee has taken a rating view based on the best available
information.
Kaynes Technology India Private Limited is a moderate sized player
in the Indian Electronics. Manufacturing Services (EMS) industry,
primarily engaged in turnkey contracts for manufacturing of circuit
boards primarily for IT peripherals, industrial controls, rail
signaling, telecom, energy, medical, automobiles, defense verticals
for customers namely Seimens, Invensys Rail India, Ansaldo, Larsen
& Tubro, Bharat Electronics, Kone Elevator to name a few.
Established in 1988 as a sole proprietorship with a single unit at
Mysore, KTIPL was converted into a private limited Company in 2008.
Further, the Company has also been frequently expanding its
operations with the addition of new units to cater to the increase
in volumes on the back of entry into newer segments.
LOHIYA DEVELOPERS: ICRA Keeps 'B' on INR5cr Debt in Not Cooperating
-------------------------------------------------------------------
ICRA said the rating for the INR5.50 crore bank facilities of
Lohiya Developers continue to remain under 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]B(Stable); ISSUER NOT
COOPERATING."
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-Term 5.00 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Short-Term 0.50 [ICRA]B (Stable) ISSUER NOT
Fund based/ COOPERATING; Rating continues
Bank Guarantee to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
Lohiya Developers was incorporated in 2008 by Mr Munendra Singh
Lohiya. The company is engaged in the field of civil construction
in government, public and private sector. The company has its head
office in Meerut (Uttar Pradesh). Over the past few years the
company has been executing work for PWD and other state government
departments in the state of UP, mostly in the city of Meerut. In
FY2016, Mr Manuj Kumar, son of Mr Munendra Lohiya became partner of
the firm with 40% stake.
MINING & CONSTRUCTION: Insolvency Resolution Process Case Summary
-----------------------------------------------------------------
Debtor: Mining & Construction Equipment Private Limited
C 21/22, Liberty Society
North Main Road
Koregaon Park, Pune
Maharashtra 411001
India
Insolvency Commencement Date: September 16, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: March 15, 2020
(180 days from commencement)
Insolvency professional: Mrs. Tanuja Jalan
Interim Resolution
Professional: Mrs. Tanuja Jalan
G-2/12B Sundar Sangam CHS Ltd
S V Road, Sunder Nagar
Malad (W), Mumbai 400064
E-mail: tanujajalan@yahoo.co.in
- and –
B-1706, Abrol Vastu Park
Near Ryan International School
Evershine Nagar
New Link Road, Malad West
Mumbai 400064
Last date for
submission of claims: October 15, 2019
NANDYALA SATYANARAYANA: ICRA Cuts Rating on INR0.10cr Loan to B+
----------------------------------------------------------------
ICRA has downgraded the ratings on certain bank facilities of
Nandyala Satyanarayana, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 0.10 [ICRA]B+(Stable) ISSUER NOT
Fund Based- COOPERATING; Rating downgraded
Cash Credit from [ICRA]BB- (Stable) and
continues to remain under
'Issuer Not Cooperating'
Category
Short Term- 0.50 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; continues to
remain under 'Issuer Not
Cooperating' category
Long Term/ 127.50 [ICRA]B+(Stable)/[ICRA]A4
Short Term- ISSUER NOT COOPERATING;
Fund Based Long term Rating downgraded
from [ICRA]BB- (Stable) and
continues to remain under
'Issuer Not Cooperating'
Category
Long Term/ 1.90 [ICRA]B+(Stable)/[ICRA]A4
Short Term– ISSUER NOT COOPERATING;
Unallocated Long term Rating downgraded
from [ICRA]BB- (Stable) and
continues to remain under
'Issuer Not Cooperating'
Category
Rationale
The rating downgrade is because of lack of adequate information
regarding Nandyala Satyanarayana performance and hence the
uncertainty around its credit risk. ICRA assesses whether the
information available about the entity is commensurate with its
rating and reviews the same as per its "Policy in respect of
non-cooperation by the rated entity". The lenders, investors and
other market participants are thus advised to exercise appropriate
caution while using this rating as the rating may not adequately
reflect the credit risk profile of the entity, despite the
downgrade.
As part of its process and in accordance with its rating agreement
with Nandyala Satyanarayana, ICRA has been trying to seek
information from the entity so as to monitor its performance, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 01, 2016, ICRA's Rating Committee has taken a rating
view based on the best available information.
Nandyala Satyanarayana (NS), a proprietorship concern which
commenced operations in 1985, is a Government recognised Star
export house, and is engaged in export of food products to the
customers in South East Asian countries like Thailand, Vietnam,
Philippines, Malaysia, Singapore etc. The entity is located in
Tadepalligudam of West Godavari district of Andhra Pradesh. NS
mainly deals in exports of various spices predominantly Dry
Chillies.
NAVKAR LIFESCIENCES: ICRA Withdraws B- Rating on INR19.75cr Loan
----------------------------------------------------------------
ICRA has withdrawn the ratings on certain bank facilities of Navkar
Lifesciences, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based-
Cash Credit 19.75 [ICRA]B- (Stable); Withdrawn
Fund based–
Term Loan 7.00 [ICRA]B- (Stable); Withdrawn
Rationale
The ratings for the INR26.75 crore long-term – fund-based bank
limits of Navkar Lifesciences has been withdrawn at the request of
the company and upon receipt of no dues certificate from the
bankers, in accordance with ICRA's policy on withdrawal and
suspension of credit rating.
Key rating drivers
Key rating drivers have not been captured since the rating has been
withdrawn.
Liquidity Position
Liquidity position has not been captured since the rating has been
withdrawn.
Navkar Lifesciences (Navkar), incorporated in February 2016, is
involved in developing and manufacturing generic pharmaceutical
formulations such as tablets, capsules and ointments. The firm's
manufacturing facilities are located in Baddi, and it offers a
considerably broad range of formulations such as analgesic,
nutritional, dermatological, antiallergic, anti-diabetic,
anti-fungal, and anti-depressant. Navkar is a part of the
Baddi-based Arion Healthcare Group (which is also involved in the
same line of business) and Arihant Packwell (which is involved in
manufacturing packaging material).
RAGHU RAMA: ICRA Reaffirms B+ Rating on INR12cr Cash Loan
---------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of Raghu
Rama Rice Industry (RRI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based-
Cash credit 12.00 [ICRA]B+ (Stable); Reaffirmed
Fund based–
Term loan 1.00 [ICRA]B+ (Stable); Reaffirmed
Unallocated
limits 3.00 [ICRA]B+ (Stable); Reaffirmed
Rationale
The rating considers RRI's small scale of operations with intense
competition in the rice milling industry, restricting its operating
margins. The rating considers RRI's weak financial risk profile,
characterised by a high gearing of 1.7 times as on March 31, 2019
and stretched coverage indicators for FY2019. The rating notes its
stretched liquidity position, impacted by increased working capital
requirements due to high inventory holding. The rating factors in
the agro-climatic risks, which can affect the availability of the
paddy in adverse weather conditions and the risks arising from the
partnership nature of the firm. The rating, however, positively
factors in the extensive track record of the promoters in the rice
milling industry and ease in paddy procurement owing to the
proximity of its plant to a major paddy cultivating region of
Andhra Pradesh. The rating considers the favourable demand
prospects of the industry with India being the second largest
producer and consumer of rice internationally, which augurs well
for the firm.
The Stable outlook reflects ICRA's belief that RRI will continue to
benefit from the extensive experience of its partners in the rice
milling industry.
Key rating drivers and their description
Credit strengths
Significant experience of partners in rice milling and trading
business – The partners have established presence in the rice
milling industry with over two decades of experience, resulting in
established relationship with its customers.
Presence in a major paddy growing region – RRI's plant located in
Jagannadhagiri village of East Godavari district, Andhra Pradesh,
which is a major rice growing area, resulting in easy availability
of paddy and low transportation cost for the firm.
Favourable demand prospects for rice – The demand prospects of
the rice industry are likely to remain good as rice is a staple
food grain and India is the world's second largest producer and
consumer of rice.
Credit challenges
Small scale of operations – RRI's scale of operations remained
small with an installed capacity of 8 MT of paddy per annum and
with an operating income of (OI) INR63.6 crore in FY2019, limiting
its financial flexibility.
Weak financial profile characterised by high gearing and stretched
coverage indicators - The firm's financial profile is characterised
by a high gearing of 1.7 times as on March 31, 2019 and stretched
coverage indicators with an interest coverage ratio of 1.5 times
and NCA/total debt ratio of 4% in FY2019.
Stretched liquidity position – RRI's liquidity position is
stretched, impacted by increased working capital requirements
because of high inventory holding.
Intense competition in industry – The rice milling industry is
characterised by stiff competition from of a large number of
organised and unorganised players, which impacts its margins.
Industry susceptible to agro-climatic risks – The rice-milling
industry is susceptible to agro-climatic risks, which can affect
the availability of paddy in adverse weather conditions.
Risk related to partnership nature of firm – RRI is exposed to
the risks inherent to the partnership nature of the firm including
the capital withdrawal risk.
Liquidity position: Stretched
RRI's liquidity position is stretched with negative retained cash
flows and minimal cash balances. Its liquidity position is impacted
by increased working capital requirements due to high inventory
holding. The firm enhanced its working capital limits by INR2.0
crore to INR19.5 crore in the current year and utilisation of the
same is high at over 95% during the peak season and ~60-70% during
the non-peak season. It has a term loan repayment obligation of
INR0.84 crore in the next 12 months.
Rating sensitivities
Positive triggers – ICRA may upgrade RRI's rating if the company
demonstrates a sustained improvement in its revenues and margins.
Specific credit metrics that may lead to an upgrade of RRI's rating
include interest coverage ratio improving to more than 2 times on a
sustainable basis.
Negative triggers – Negative pressure on the rating may arise if
a decline in revenues or accruals impacts its liquidity position
further. Specific credit metrics that may lead to a rating
downgrade include interest coverage ratio reducing to below 1.3
times.
Founded in 2012 as a partnership firm, RRI is involved in milling
of paddy and produces raw and boiled rice. The firm started its
operations in June 2013. It has a milling unit at Jagannadhagiri
village in East Godavari district, Andhra Pradesh, with an
installed capacity of 8 MT of paddy per hour.
RRI reported an operating income (OI) of INR63.6 crore and a net
profit of INR0.2 crore in FY2019 against an OI of INR71.4 crore and
a net profit of INR0.2 crore in FY2018.
RAKSHA MULTISPECIALITY: Insolvency Resolution Process Case Summary
------------------------------------------------------------------
Debtor: Raksha Multispeciality Hospital Private Limited
D11/5, Asmita Jyoti Bldg, 1st Floor
Near Atharva College
Marve Charkop Naka Junction
Malad (West)
Mumbai 400095
Maharashtra
India
Insolvency Commencement Date: November 18, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: May 16, 2020
Insolvency professional: Jagdish Kumar Govinda Pillai
Interim Resolution
Professional: Jagdish Kumar Govinda Pillai
701, Odyssey One
Hiranandani Gardens
Powai, Mumbai 400076
E-mail: jagdishkumarpillai@gmail.com
jagdishpillai.raksha.irp@
gmail.com
Last date for
submission of claims: December 18, 2019
REGEN POWERTECH: NLCT Starts Insolvency Process Against Firm
------------------------------------------------------------
The Economic Times reports that a tribunal has started insolvency
proceedings in the case of Chennai-based wind turbine manufacturer
ReGen Powertech, emphasising the dire times the wind energy sector
is passing through.
The National Company Law Tribunal ordered the commencement of a
corporate insolvency resolution process of ReGen Powertech on
December 9, the interim resolution professional said in a notice
dated December 13 in the Times of India.
"This does not come as a surprise . . . They have not been able to
ramp up their order book since 2017," ET quotes an industry expert
as saying.
Creditors of ReGen have time until December 27 to file their
claims, according to the notice cited by ET.
According to the report, ReGen stopped making turbines last year
after India switched to auctioning wind energy projects. It took up
operations and maintenance (O&M) work, which was inadequate to
sustain the company, the report says.
ReGen closed its unit in Udaipur in late 2017 and cut staff
strength at its Nellore plant to 1,300 from 1,700. It stopped
manufacturing turbines last year and now specialises only in O&M.
"They are cash-strapped. ReGen is surviving only on O&M, which
cannot meet the entire expenses of the company. Wind turbine
manufacturers are supposed to predominantly meet their salaries and
administrative overheads from their project business," said an
industry executive, requesting anonymity, ET relays.
RICH FOOD: ICRA Assigns B+ Rating to INR10cr LT Loan
----------------------------------------------------
ICRA has assigned rating to the bank facilities of Rich Food
Corporation (RFC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 10.00 [ICRA]B+(Stable); Assigned
Fund-based
Limits
Rationale
The assigned rating factors in RFC's modest scale of operations,
although a substantial improvement is expected in FY2020 on the
back of strong sales volume growth. The assigned rating also
factors in the modest financial profile as reflected by low net
worth position, moderate cash accruals and elevated debt/OPBDITA
levels. The rating also factors in the working capital-intensive
nature of operations as evident from high inventory days. Moreover,
intense competition in the industry and limited value-additive
nature of the business restrict its pricing flexibility. The rating
also factors in the vulnerability of the firm's revenues and
profitability to fluctuations in the price of pulses.
However, the ratings favourably take into account the firm's
long-term associations with reputed customers that translate into
repeat orders and provide medium-term revenue visibility. ICRA also
notes the extensive experience of promoters and the Group's
established presence in the pulse processing business.
The Stable outlook on [ICRA]B+ rating reflects that RFC will
continue to benefit from the vast experience of the promoters and
their established relations with customers.
Key rating drivers and their description
Credit strengths
Extensive experience of partners in pulse processing industry –
The partners have extensive experience in pulse processing business
through their association with other Group entities involved in
similar businesses. The extensive experience and exposure of the
promoters helps the firm in establishing trade relationships with
some of the leading brands in the snack industry.
Established relationship with key customers and addition of new
clients – The firm has long relations with its key customers such
as the Haldiram Group, which results in repeat orders and provides
revenue visibility. RFS has also been associated with other leading
snacks brands like the Bikaji Group, which provides greater
customer diversifications.
Relatively low demand risks as products are part of Indian staple
diet – The demand for the RFC's products is stable as pulses form
essential constituents of consumers' daily diet. Moreover, moth,
which forms a high proportion of the total sales, is a key
constituent in the majority of snacks products.
Credit challenges
Moderate scale of operations in highly competitive and fragmented
industry – Though the firm is expected to witness a healthy
growth in FY2020, its scale of operations remains moderate as
evident in its top line of INR57.84 crore in FY2019. Moreover, the
business environment in pulse processing industry is characterised
by intense competition, given the fragmented structure, limited
value addition and presence of a large number of unorganised
players.
Government policy and agro-climatic conditions impact operating
performance – The agro-commodity trading and processing business
remains dependent on the performance of the agricultural sector,
which is further impacted by a combination of factors like climatic
conditions, prevailing demand–supply scenario, regulatory changes
pertaining to export incentive, etc. These factors impact the
prices of pulses, which in turn affects the firm's profitability.
Liquidity position: Stretched
RFC exhibits a stretched liquidity position due to limited cushion
available to it in the absence of undrawn working
capital limits. Utilisation of bank-funded limit as well as
additional inventory funding limit has remained high throughout
the year, constraining its financial flexibility. Low cash accruals
due to continuous withdrawal of capital by promoters
puts further strain on liquidity.
Rating sensitivities
Positive trigger: Rating could be upgraded if the company shows
sustained growth in scale while improving its profit margins
leading to an improvement in the overall credit metrics of the
company.
Negative trigger: Rating could be downgraded in case of sustained
decline in the revenues and profit margins. Inefficient working
capital management or substantial withdrawal of capital by
promoters leading to deterioration in the credit metrics on
sustained basis could also exert downward pressure.
Rich Food Corporation (RFC) is produces and sells food products
like besan (gramflour), chana, masoor, moong and moth. It is a
partnership firm and was incorporated in 2015. RFC has four pulse
processing units in Delhi-NCR that have a total installed
processing capacity 1,800 MT of raw pulses per month. The firm
procures the raw material both through import as well through
indigenous production. RFC is a part of the diversified Bansal
Group of Companies, which was established by Mr. D.P. Bansal in
2000. The firm supplies pulses to some the leading food brands in
India like Bikaji Food International Ltd. and various companies of
the Haldiram Group.
SALELINK ECOM: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Salelink Ecom Private Limited
37, 3rd floor, Plot No. 115/117
Trinity Chambers
Bora Bazar Street
Fort Mumbai 400001
Maharashtra State
IN
Insolvency Commencement Date: October 22, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: April 20, 2020
(180 days from commencement)
Insolvency professional: Prabhakar Bhat
Interim Resolution
Professional: Prabhakar Bhat
No. 7, First floor Shital
Plot No. 81
Jain Mandir Marg
Behind Old SIES College
Sion West, Mumbai 400022
E-mail: sukkhe@gmail.com
Last date for
submission of claims: December 16, 2019
SHIV METTALICKS: Ind-Ra Affirms BB- Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Shiv Mettalicks
Private Limited's (SMPL) Long-Term Issuer Rating at 'IND BB-'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR116 mil. Fund-based working capital limit affirmed with IND
BB-/Stable rating; and
-- INR4 mil. Non-fund-based working capital limit affirmed with
IND A4+ rating.
KEY RATING DRIVERS
The affirmation reflects SMPL's continued small scale of operations
despite improvement in revenue to INR843.65 million in FY19
(INR664.61 million) backed by increased production capacity and
improved realizations. Ind-Ra expects the revenue to grow over the
medium term backed by recurring orders from the customers. The
company has achieved revenue of INR520 million in 1HFY20.
The ratings also factor in moderate credit metrics, as reflected by
marked by net financial leverage (Ind-Ra adjusted debt/operating
EBITDAR) of 1.52x in FY19 (FY18: 3.76x) and interest coverage
(operating EBITDA/gross interest expense) of 2.42x (1.89x) owing to
low utilization. However, Ind-Ra expects the leverage to
deteriorate in FY20 due to the increase in the utilization of the
fund-based facility. The rating is also constrained by SMPL's
modest operating margins, which contracted to 3.52% in FY19 (FY18:
3.98%) on account of an increase in raw material prices. The RoCE
stood at 5.42% in FY19 (FY18: 4.49%).
Liquidity Indicator-Stretched: SMPL's average maximum working
capital utilization was 92.98% during the twelve months ended in
October 2019. The cash and cash equivalents stood at INR3.07
million in FY19 (FY18: INR1.91 million). Cash flow from operations
improved toINR76.78 million in FY19 (FY18: INR21.09 million) on
account of favorable changes in the working capital. The company
has no repayment obligation.
The rating, however, is supported by SMPL's founders' decade-long
experience in sponge iron manufacturing.
RATING SENSITIVITIES
Positive: Substantial improvement in revenue, along with
improvement in profitability leading to improvement in leverage
could lead to positive rating action.
Negative: Deterioration in revenue, leading to a fall in the
operating margin along with coverage ratio below 1.7x could lead to
negative rating action.
COMPANY PROFILE
Rourkela (Odisha) based SMPL was incorporated in 2004. The company
manufactures sponge iron with an installed capacity of 60,000
metric tons per annum.
SHREYA BROADCASTING: ICRA Withdraws B+ Rating on INR5cr Loan
------------------------------------------------------------
ICRA has withdrawn the long-term rating of [ICRA]B+ (Stable) and
the short term of [ICRA]A4 ISSUER NOT COOPERATING assigned to the
INR15.95 crore bank facilities of Shreya Broadcasting Private
Limited (SBPL).
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.00 [ICRA]B+(Stable) ISSUER NOT
Fund Based/CC COOPERATING; Withdrawn
Long Term- 3.55 [ICRA]B+(Stable) ISSUER NOT
Fund Based TL COOPERATING; Withdrawn
Short Term- 2.00 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Withdrawn
Long Term/ 5.40 [ICRA]B+(Stable)/[ICRA]A4
Short Term– ISSUER NOT COOPERATING;
Unallocated Withdrawn
Rationale
The rating is withdrawn in accordance with ICRA's policy on
withdrawal and suspension at the request of the company,
based on no-due certificate provided by its banker.
Key rating drivers
Key Rating drivers has not been captured as the rated instrument is
being withdrawn
Shreya Broadcasting Private Limited (SBPL) was incorporated in the
year 2006 by Mr. B.R. Naidu. The company operates a 24-hour Telugu
News channel by the name of TV5 News which was launched in
October-2007. The channel is a free to air channel and has remained
among the top-5 Telugu News over the years. SBPL also launched two
new channels, TV5 Kannada, a Kannada News channel, and Hindu
Dharmam, Telugu Devotional channel, in October 2017. The capital
investment for TV5 Kannada has been made by SBPL's group
(debt-free) company, Rana Broadcasting Private Limited
(RBPL), which would also handle the operations of TV5 Kannada, and
SBPL would pay operational charges to RBPL going forward.
SHRI SODE: ICRA Keeps D on INR21cr Loan in Not Cooperating
----------------------------------------------------------
ICRA said the ratings for the INR21.00-crore bank facilities of
Shri Sode Vadiraja Mutt Education Trust (SSVMET) continue to remain
under 'Issuer Not Cooperating' category'. The ratings are denoted
as "[ICRA]D ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 21.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund Based– Continues to Remain under the
Term Loan 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.
Shri Sode Vadiraja Mutt Education Trust was incorporated in the
year 2009 and manages an engineering college named by Shri Madhwa
Vadiraja Institute of Technology and Management (SMVITM), in Udupi
district, Karnataka. The college started functioning from July 2011
and is affiliated to Visvesvaraya Technological University (VTU)
and is also AICTE approved (All India Council for Technical
Education) and recognized by Government of Karnataka. The trust was
formed by Shree Vishwa Vallabha Theertha Swamiji for undertaking
educational and research activities. The members of the trust are
Shree Vishwa Vallabha Theertha Swamiji, Shri P. Srinivas Tantry and
Shri Rathna Kumar. The main objective of the trust is to set up and
operate government aided and private courses/programs in the field
of technical education, training and research in engineering and
technology.
SLN TECHNOLOGIES: ICRA Withdraws 'D' Rating on INR4.50cr Loan
-------------------------------------------------------------
ICRA has withdrawn the rating assigned to Sln Technologies Private
Limited at the request of the company, and in accordance with
ICRA's policy on withdrawal and suspension. ICRA does not have
requisite information to suggest any change in the company's credit
risk since the time the rating was last reviewed.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term-Fund- 3.00 [ICRA]D; ISSUER NOT
based-Term Loan COOPERATING; Withdrawn
Long-term-Fund- 4.50 [ICRA]D; ISSUER NOT
based–Working COOPERATING; Withdrawn
Capital Facilities
Long Term– 0.50 [ICRA]D; ISSUER NOT
Unallocated COOPERATING; Withdrawn
Short Term- 6.25 [ICRA]D; ISSUER NOT
Non-Fund Based- COOPERATING; Withdrawn
Working Capital
Facilities
Key rating drivers
Key rating drivers has not been captured as the rated instruments
are being withdrawn
Rating sensitivities
Rating sensitivities have not been captured as the rated instrument
is being withdrawn.
Liquidity position
Liquidity position has not been captured as the rated instrument is
being withdrawn.
Incorporated in 1995, SLN Technologies Private Limited is involved
in designing and manufacturing of electronic products, which finds
applications in Defence, nuclear, aerospace, satellite and
communication. The company, promoted by Mr. D. R. Subramanyam and
Mr. M. Anil Kumar engineering graduates with nearly 30 years of
industry experience, was initially involved in providing
maintenance and repair services to the domestic printed circuit
manufacturing industry. However, it has transformed into an
electronic systems design and manufacturing company (ESDM) and the
product portfolio includes solid state flight data recorders
(SSFDR), automated test equipments (ATEs), antenna control systems,
trip units and other electronic products. At present, it operates
from rented premises of (~3,600 sq ft) and is in the process of
setting up its own, 24,500 sq ft., manufacturing facility in
Bangalore. It is ISO 9001:2015 and AS9100D certified. SLN
Technologies is voted to be the permanent member of the
Asia-Pacific Aerospace Quality Group (APAQG).
SONEX INDUSTRIES: ICRA Lowers Rating on INR5cr Loan to B+
---------------------------------------------------------
ICRA has downgraded the ratings on certain bank facilities of Sonex
Industries (SI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 1.50 [ICRA]B+ (Stable) ISSUER NOT
Term Loan COOPERATING; Rating downgraded
from [ICRA]BB- (Stable) and
continues to remain under
'Issuer Not Cooperating'
Category
Fund based- 5.00 [ICRA]B+ (Stable) ISSUER NOT
Cash Credit COOPERATING; Rating downgraded
from [ICRA]BB- (Stable) and
continues to remain under
'Issuer Not Cooperating'
category
Non-fund based 2.10 [ICRA]A4 ISSUER NOT
Bank Guarantee COOPERATING; Rating continues
To remain under 'Issuer Not
Cooperating' category
Rationale
The rating downgrade is because of lack of adequate information
regarding SI performance and hence the uncertainty around its
credit risk. ICRA assesses whether the information available about
the entity is commensurate with its rating and reviews the same as
per its "Policy in respect of non-cooperation by the rated entity".
The lenders, investors and other market participants are thus
advised to exercise appropriate caution while using this rating as
the rating may not adequately reflect the credit risk profile of
the entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with Sonex Industries (SI), ICRA has been trying to seek
information from the entity so as to monitor its performance, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 01, 2016, ICRA's Rating Committee has taken a rating
view based on the best available information.
Established under Sonex group by Jetpariya family in 2002, Sonex
Industries(SI) has been engaged in manufacturing of digital ceramic
wall tiles of three different sizes. The manufacturing facility,
located in Morbi (Gujarat) is equipped with 3 pressing machines, 1
printing machine and 2 kilns, having an installed capacity to
produce 10,000 boxes per day (of size 12" ×12"). Sonex group of
company is an ISO 9001:2008 certified company. SI is currently
managed by third generation of Jetpariya family having an
experience of about three decades in the ceramic industry.
VISTAR METAL: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Vistar Metal Industries Private Limited
401, 402 & 403 Coral Classic Co.Op Soc
Road no. 20, Ambedkar Garden
Chembur East Mumbai City
Maharashtra 400071
Insolvency Commencement Date: October 14, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: May 24, 2020
Insolvency professional: Atul Jain
Interim Resolution
Professional: Atul Jain
C/o GMJ & Co, Chartered Accountants
3rd & 4th Floor, Vaastu Darshan
"B" wing, Azad Road
Above Central Bank of India
Andheri (East)
Mumbai 400069
E-mail: atuljainca@hotmail.com
vistar.rp@gmail.com
Last date for
submission of claims: December 12, 2019
===============
M A L A Y S I A
===============
SCOMI ENERGY: Unit Defaults on Redemption of Bonds Worth MYR55MM
----------------------------------------------------------------
Arjuna Chandran Shankar at theedgemarkets.com reports that Scomi
Energy Services Bhd said its indirect wholly-owned subsidiary KMCOB
Capital Bhd has defaulted on redemption of bonds worth MYR55
million.
The due date of redemption was on Dec. 13, the report says.
theedgemarkets.com relates that in a bourse filing on Dec. 13, the
Practice Note 17 (PN17) company said despite not being able to meet
the principal payment, KMCOB will pay the coupon on the Series E of
the bond.
"To date, KMCOB has partially built up approximately MYR22 million
in the sinking fund and is short of about MYR33 million to repay
the Series E of KMCOB Bond," it added.
According to the report, Scomi Energy said while it had on Dec. 10
accepted a letter of offer from MIDF Amanah Investment Bank Bhd to
provide a bridging financing to repay the MYR55 million worth of
bonds, it had insufficient time to fulfil the conditions precedent
and security arrangement for the drawdown of the bridging financing
before the payment date.
Nevertheless, it noted that there is no legal implication at this
stage as no legal action has been taken by the trustee of the
bondholders - TMF Trustee Malaysia Bhd - or Danajamin Nasional Bhd,
the report relates. The KMCOB bond is guaranteed by Danajamin under
the financial guarantee insurance facility, with the guarantee
against KMCOB, Scomi Energy and other Scomi Oilfield Ltd
subsidiaries that are security parties and corporate guarantors
under the KMCOB bond. The principal amount outstanding is MYR105
million as of Nov. 30.
theedgemarkets.com relates that Scomi Energy said KMCOB also
submitted a formal request to TMF Trustee on Dec. 11 to seek a
remedial period from the bondholders for the settlement of the
bonds.
On its part, Scomi Energy is expediting the fulfilment of the
conditions precedent and security arrangement to facilitate the
drawdown of the bridging financing and settlement of the Series E
of KMCOB bond within the remedial period, theedgemarkets.com
relays.
Based in Malaysia, Scomi Energy Services Berhad --
https://scomienergy.com.my/ -- provides marine vessel
transportation services. The Company offers marine logistical
services to the coal industry and offshore marine support services
to oil and gas operators and contractors. Scomi Energy Services
serves the coal, oil and gas industries in South East Asia.
On Oct. 31, Scomi Energy triggered the PN17 criteria after its
shareholders' equity on a consolidated basis fell below 50% of its
issued share capital as at June 30. It had subsequently submitted a
PN17 waiver application to Bursa Malaysia on Nov 1.
===============
P A K I S T A N
===============
PAKISTAN: Needs More Than an IMF Bailout to Fix Ailing Economy
--------------------------------------------------------------
The Financial Times reports that investors have warmed to Pakistan
since the government secured a $6 billion bailout from the IMF in
July, removing any immediate threat of sovereign default.
According to the FT, MSCI's Pakistan equities index is up more than
a third from its August lows, compared with a gain of just over 10
per cent for MSCI's flagship emerging market index.
The FT relates that foreign investors have made a tentative return
to the country's local debt market, buying $1.2 billion of local
currency government bonds since July after staying away for most of
the past two years. But the ailing south Asian economy will need
more than the IMF's aid to solve its chronic problems, the report
notes.
Pakistan has been trapped for years in a boom and bust cycle in
which no growth spurt has lasted more than four years, the FT
notes.
=====================
P H I L I P P I N E S
=====================
AMA RURAL BANK: PDIC Seeks to Lift TRO on Bank's Closure
--------------------------------------------------------
The Philippine Deposit Insurance Corporation (PDIC) asked the Court
of Appeals (CA) to lift and dissolve the temporary restraining
order (TRO) prohibiting the PDIC from implementing the closure
order of AMA Rural Bank of Mandaluyong, Inc. (AMA Bank). The PDIC
explained that while the TRO is effective, it shall have no access
to bank records and documents used as basis to settle claims for
deposit insurance of depositors of AMA Bank. According to PDIC,
this becomes necessary as it found huge discrepancies in the Bank's
deposit data.
The PDIC said, based on records seen on the day it took over AMA
Bank on November 8, 2019, and prior to the issuance of the TRO, the
data available in the Bank's deposit system was as of April 30,
2019 with total deposits of PHP4,963,021,833.17 consisting of
11,535 accounts. These are significantly higher than the reported
figures to the PDIC as of June 30, 2019 with total deposits of only
PHP1,448,522,577.30 representing 8,434 accounts. Because of
discrepancies in the data on deposits coupled with the absence of
real-time recording of transactions on deposits in the deposit
system, it becomes even more necessary for the PDIC to validate the
Bank's records and documents.
The TRO was issued by the CA Third Division on November 25, 2019 in
favor of the majority stockholders of the closed AMA Bank. For a
period of 60 days, the Bangko Sentral ng Pilipinas (BSP) and the
PDIC are restrained from implementing the Monetary Board Resolution
which directed the closure of AMA Bank and its placement under the
PDIC liquidation. As a result of the TRO, the PDIC was constrained
to stop its liquidation operations.
Earlier, after directors, accountable officers and employees of the
Bank refused to turn over records under their accountabilities,
possession and custody, the PDIC pursued standard alternative
procedures to commence the inventory-taking of the records of the
closed AMA Bank in the presence of persons in authority.
The PDIC stressed that notwithstanding the TRO, AMA Bank remains
closed and under liquidation by the PDIC. Depositors and clients of
AMA Bank are advised to communicate only with the PDIC.
Depositors, creditors and borrowers of AMA Bank may visit the PDIC
official website, www.pdic.gov.ph, and facebook account for
information and further developments. They may also communicate
with PDIC by calling the PDIC Public Assistance Hotline (02)
8841-4141 during office hours. Concerned clients of the Bank who
are outside Metro Manila may also call PDIC at its Toll Free
Hotline at 1-800-1-888-PDIC (7342) during office hours. Inquiries
may also be sent via email to pad@pdic.gov.ph or thru private
message to the official PDIC Facebook account at
www.facebook.com/OfficialPDIC
About AMA Rural Bank
AMA Rural Bank of Mandaluyong was a 13-unit rural bank with Head
Office located at No. 311, Shaw Blvd., Brgy. Hagdang Bato Libis,
Mandaluyong City. It has 12 branches located in Pasig City; Baguio
City; San Fernando City, La Union; Tuguegarao City, Cagayan;
Baliuag, Bulacan; San Fernando, Pampanga; Bacoor, Cavite; Cainta
and Morong in Rizal; Calamba City and San Pablo City in Laguna; and
Palo, Leyte.
Latest available records show that as of June 30, 2019, AMA Rural
Bank of Mandaluyong has 8,434 deposit accounts with total deposit
liabilities of PHP1.4 billion, of which 92.06% or PHP1.3 billion
are insured deposits.
The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP)
prohibited AMA Rural Bank of Mandaluyong, Inc. from doing business
in the Philippines through MB Resolution No. 1705.D dated November
7, 2019 which also directed the Philippine Deposit Insurance
Corporation (PDIC) as Receiver to proceed with the takeover and
liquidation of AMA Rural Bank of Mandaluyong. PDIC took over the
bank on November 8, 2019.
=================
S I N G A P O R E
=================
HYFLUX LTD: New Investor Offers to Buy Out SGD1.8BB of Debts
------------------------------------------------------------
Annabeth Leow at The Business Times reports that a new investor has
come calling on Hyflux Ltd, making an offer disclosed on Dec. 17 to
buy out some of its creditors' debts.
BT relates that the fresh face, a company named Aqua Munda, has
made its offer to holders of Hyflux's 4.25 per cent notes due in
2018 and its 4.6 per cent notes and 4.2 per cent notes due in 2019,
as well as to the unsecured creditors of Hyflux and three of the
company's subsidiaries.
According to the invitation notice sent to Hyflux, Aqua Munda has
estimated that these debts together come up to about SGD1.8
billion, including contingent liabilities, BT relays.
Eligible creditors can tender for the investor to buy over the
debts between Dec. 30, 2019 and Jan. 10, 2020, with a more detailed
memorandum to set out the terms and conditions by Dec. 27, the
report relates.
"For the avoidance of doubt, the investor retains the right in any
event to choose not to accept any or all of the offers tendered by
the eligible creditors," Aqua Munda added in its letter, relays
BT.
According to the report, Hyflux recently had its debt moratorium
extended for another two months, until late-January next year.
Referring to the latest offer, it said in a bourse filing on Dec.
17 that it "will make the appropriate announcements as and when
there are any further material developments on this matter," BT
adds.
About Hyflux
Singapore-based Hyflux Ltd -- https://www.hyflux.com/ -- provides
various solutions in water and energy areas worldwide. The company
operates through two segments, Municipal and Industrial. The
Municipal segment supplies a range of infrastructure solutions,
including water, power, and waste-to-energy to municipalities and
governments. The Industrial segment supplies infrastructure
solutions for water to industrial customers. It has business
operations across Asia, Middle East and Africa.
As reported in the Troubled Company Reporter-Asia Pacific on May
24, 2018, Hyflux Ltd. said that the Company and five of its
subsidiaries, namely Hydrochem (S) Pte Ltd, Hyflux Engineering Pte
Ltd, Hyflux Membrane Manufacturing (S) Pte. Ltd., Hyflux Innovation
Centre Pte. Ltd. and Tuaspring Pte. Ltd. have applied to the High
Court of the Republic of Singapore pursuant to Section 211B(1) of
the Singapore Companies Act to commence a court supervised process
to reorganize their liabilities and businesses. The Company said
it is taking this step in order to protect the value of its
businesses while it reorganises its liabilities.
The Company has engaged WongPartnership LLP as legal advisors and
Ernst & Young Solutions LLP as financial advisors in this process.
*********
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,
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Information contained herein is obtained from sources believed
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thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***