/raid1/www/Hosts/bankrupt/TCRAP_Public/191225.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
Wednesday, December 25, 2019, Vol. 22, No. 257
Headlines
A U S T R A L I A
DIESEL GYM: First Creditors' Meeting Set for Jan. 3
PAMADA NORTH: First Creditors' Meeting Set for Jan. 3
STALLION ELEVATORS: First Creditors' Meeting Set for Jan. 7
TREBLA NOMINEES: First Creditors' Meeting Set for Jan. 9
C H I N A
GUANGZHOU R&F: Fitch Affirms BB- LongTerm IDRs, Outlook Stable
ZHENENG JINJIANG: Moody's Affirms 'Ba3' Corp. Family Rating
ZHENGZHOU ZHONGRUI: Moody's Lowers CFR to B3, Outlook Stable
I N D I A
ANS APRATMENTS: Insolvency Resolution Process Case Summary
BLUEJAY NUTS: Ind-Ra Migrates B+ Issuer Rating to Non-Cooperating
DABRA AGRO: Ind-Ra Lowers Long Term Issuer Rating to 'D'
FAIR N FLAIR: Ind-Ra Lowers LongTerm Issuer Rating to 'D'
GUJARAT CONSTRUCTION: Ind-Ra Assigns 'BB-' LongTerm Issuer Rating
HINDUSTAN CONCRETES: Ind-Ra Migrates B+ Rating to Non-Cooperating
INDO WORLD: Insolvency Resolution Process Case Summary
JAYA POULTRY: Ind-Ra Lowers Long Term Issuer Rating to 'D'
K.D. LIQUOR: Ind-Ra Migrates 'BB' Issuer Rating to Non-Cooperating
KAULA AGRO: Insolvency Resolution Process Case Summary
LEEL ELECTRICALS: Insolvency Resolution Process Case Summary
M K S OIL: Insolvency Resolution Process Case Summary
MITTAL FIBER: Ind-Ra Migrates B+ LT Issuer Rating to NonCooperating
MY CAR: CRISIL Maintains 'D' Ratings in Not Cooperating
NEW LAXMI: Ind-Ra Migrates BB+ LT Issuer Rating to Non-Cooperating
PAGODA STEELS: CRISIL Maintains 'D' Ratings in Not Cooperating
RAGHAV INDUSTRIES: CRISIL Lowers Rating on INR8cr Cash Loan to D
SAARAS OIL: Ind-Ra Migrates BB LT Issuer Rating to Non-Cooperating
SHIV SHAKTI: Ind-Ra Migrates B LT Issuer Rating to Non-Cooperating
SHREE GANESH: Insolvency Resolution Process Case Summary
SPG GLOBAL: Insolvency Resolution Process Case Summary
SRI LAKSHMIKANTHA: CRISIL Keeps 'D' Rating in Not Cooperating
SYNERGY FABRICS: Insolvency Resolution Process Case Summary
TIRUPATI PADDY: CRISIL Maintains 'D' Debt Ratings in NonCooperating
TOSHNIWAL ENTERPRISES: Insolvency Resolution Process Case Summary
TRANSPORT SOLUTIONS: CRISIL Keeps 'D' Ratings in Not Cooperating
TRIPATHI HOSPITAL: CRISIL Lowers Rating on INR20cr Loan to D
TYBROS (INDIA): Insolvency Resolution Process Case Summary
UDAY AUTOLINK: CRISIL Maintains 'C' Ratings in Not Cooperating
UNIVERSAL EDUCATIONAL: Ind-Ra Keeps BB+ Rating in Non-Cooperating
VARDHMAN SPINNERS: CRISIL Keeps 'B' Ratings in Not Cooperating
VIJAI SPINNERS: Insolvency Resolution Process Case Summary
VIKAS BUILDERS: CRISIL Withdraws D Rating on INR15cr Term Loan
VINTEGRATE TECHNOLOGY: CRISIL Cuts Rating on INR5.7cr Loan to D
VISHAL CHAIN: CRISIL Keeps 'B' Rating in Not Cooperating
I N D O N E S I A
PAKUWON JATI: Moody's Affirms Ba3 CFR, Outlook Stable
N E W Z E A L A N D
CULLEN GROUP: Nine Related Companies Move Into Liquidation
P H I L I P P I N E S
PENAFRANCIA RURAL: Ex-Pres, 5 Officers Charged for Qualified Theft
S I N G A P O R E
HYFLUX LTD: New Investor to Engage with PnP Holders Soon
PUMA ENERGY: Moody's Lowers CFR to Ba3, Outlook Negative
SUNVIC CHEMICAL: Unit Gets Demand Letter to Repay Loan
SWIBER HOLDINGS: Judicial Mgmt. Period Extended Thru Jan. 31
- - - - -
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A U S T R A L I A
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DIESEL GYM: First Creditors' Meeting Set for Jan. 3
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A first meeting of the creditors in the proceedings of Diesel Gym
Pty Ltd will be held on Jan. 3, 2020, at 10:00 a.m. at the offices
of Australian Institute of Company Directors, Level 1, at 77 St
Georges Terrace, in Perth, WA.
Cameron Shaw and Richard Albarran of Hall Chadwick were appointed
as administrators of Diesel Gym on Dec. 19, 2019.
PAMADA NORTH: First Creditors' Meeting Set for Jan. 3
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Pamada North
Shore No. 3 Pty Ltd will be held on Jan. 3, 2020, at 11:00 a.m. at
the offices of Chifley Advisory, Suite 19.03, Level 19, at 31
Market St, in Sydney, NSW.
Gavin Moss and Desmond Teng of Chifley Advisory were appointed as
administrators of Pamada North on Dec. 19, 2019.
STALLION ELEVATORS: First Creditors' Meeting Set for Jan. 7
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Stallion
Elevators Pty. Limited will be held on Jan. 7, 2020, at 3:30 p.m.
at the offices of CRS Insolvency Services, Level 5, at 379 Kent
Street, in Sydney, NSW.
Anthony John Warner of CRS Insolvency Services was appointed as
administrator of Stallion Elevators on Nov. 28, 2019.
TREBLA NOMINEES: First Creditors' Meeting Set for Jan. 9
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Trebla
Nominees Pty. Ltd (formerly trading as Alby Turner & Son) will be
held on Jan. 9, 2020 at 11:00 a,m, at Clifton Hall, Level 3, at 431
King William Street, in Adelaide, South Australia.
Timothy Clifton was appointed as Liquidator of Trebla Nominees on
Dec. 12, 2019.
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C H I N A
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GUANGZHOU R&F: Fitch Affirms BB- LongTerm IDRs, Outlook Stable
--------------------------------------------------------------
Fitch Ratings affirmed Guangzhou R&F Properties Co., Ltd.'s
Long-Term Foreign- and Local-Currency Issuer Default Ratings at
'BB-'. The Outlook is Stable. Fitch has also affirmed the senior
unsecured rating at 'BB-'.
Fitch expects Guangzhou R&F's leverage, measured by net
debt/adjusted inventory, to stay below 55% from 2020 as the company
scales back its expansion. This level of leverage remains high
compared with peers rated at the same level, which have average
leverage of around 45%. Fitch believes Guangzhou R&F's stronger
business profile mitigates the higher leverage as it has a larger
scale and better business diversification. Its moderately long
land-bank life allows it to maintain a high development properties
EBITDA margin of above 30%.
KEY RATING DRIVERS
Gradual Deleveraging: Fitch believes Guangzhou R&F's leverage will
fall to 56.5% by end-2019 after it reduced its land acquisitions in
2H19 to less than CNY10 billion, or less than 15% of its contracted
sales. This is low compared with 28%-29% in 2018 and 1H19. In 2H19,
management reduced its medium-term sales target and plans to keep
land acquisition spending low in 2020. Controlled land purchases
will help the company to keep leverage in 2020-2022 below 55%, the
threshold at which Fitch would consider negative rating action.
Guangzhou R&F's leverage rose to 58.5% in 1H19 after weak cash
collection.
The company's approval from the China Securities Regulatory
Commission in December 2019 to issue H-shares provides it another
option to deleverage.
Adequate Land Bank: Guangzhou R&F's moderately long land bank life
gives it buffer to reduce its land acquisition. Its attributable
land bank of 61.0 million sq m as of 1H19 is adequate for its
contracted sales to continue growing for 4.5 years. Moreover,
management guided that the first few of its sixty urban
redevelopment projects are expected to be transferred to its land
bank in phases and contribute to contracted sales in coming 12
months - the key projects are in Guangzhou and Greater Bay Area.
This gives enough buffer for the company to slow its land
acquisition pace. This also gives room to Guangzhou R&F to pick the
projects with high margin as it is not in a rush to replenish its
land bank.
Higher Sales Scale: Fitch expects attributable contracted sales to
increase moderately by 6% in 2019 to CNY140 billion and by 10% in
2020. The company's sales were higher than 'BB-' peers' sales of
CNY50 billion-80 billion. Guangzhou R&F's land bank covers more
than 100 cities and is more geographically diversified than the
30-40 cities of 'BB-' rated peers. Guangzhou R&F's urban
redevelopment projects will improve its land bank mix by adding
sites in Tier 1 and 2 cities. Currently, 37% of its attributable
land bank is in lower-tier cities in China where home sales are
more volatile.
Sustained High Margins: Guangzhou R&F had an EBITDA margin,
excluding capitalised interest from cost of sales, of about 34% in
2018. Its gross profit margin improved to 41% in 1H19 from 36% in
2018. The margins will be supported by the company's unrecognised
property sales of CNY120 billion, which carried a gross profit
margin of 35% on average. These sales will be recognised over the
next year or two and support the company's EBITDA margin in
2020-2021. Its urban redevelopment projects to be launched in
coming 12 months carry a high margin of around 40%.
Higher Non-Development EBITDA: The company's hotel and rental
revenue surged by 145% to CNY8.1 billion in 2018 (2017: CNY3.3
billion), driven by contributions from the newly acquired Wanda
hotels. Fitch estimates that Guangzhou R&F's non-development
revenue from hotel and property rental to reach CNY8.9 billion in
2019 and continue to grow by around 5% in 2020. However, the
company's non-development EBITDA/gross interest expense ratio will
be around 0.3x in 2019-2020 (2018: 0.29x), weighed down by higher
operating costs and pre-opening expenses for upcoming hotel and
investment properties.
DERIVATION SUMMARY
Guangzhou R&F's geographical diversification is comparable with
'BB+' and 'BB' rated peers. Guangzhou R&F has a more geographically
diversified operation spread across 100 cities in China, more than
CIFI Holdings (Group) Co. Ltd.'s (BB/Stable) more than 50 cities.
Such geographical diversification should help both companies to
mitigate risks from local policy intervention and economies.
Guangzhou R&F's homebuilding scale, measured by attributable
contracted sales, is comparable with Seazen Group Limited
(BB/Stable) CNY143 billion in 2018 and bigger than some of the 'BB'
rated peers like CIFI's CNY76 billion. It is higher than the CNY40
billion-80 billion of 'BB-' rated peers, such as China Aoyuan Group
Limited's (BB-/Positive) CNY77.6 billion and Times China Holdings
Limited's (BB-/Stable) CNY48.5 billion.
Guangzhou R&F's ratings are constrained by its leverage of 55% at
end-1H19, which is comparable to the 50%-60% of 'B+' rated peers,
such as Yango Group Co., Ltd. (B+/Stable). Guangzhou R&F's high
leverage is mitigated by stronger profitability, with its EBITDA
margin, excluding capitalised interest from cost of sales, of 34%,
which was higher than the 25%-30% of 'BB-' peers.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Attributable contracted sales of CNY140 billion-185 billion in
2019-2022- EBITDA margin, excluding capitalised interest from cost
of sales, at 31%-34% in 2019-2022- 20%-40% of contracted sales
proceeds to be spent on land acquisitions in 2019-2022, to maintain
a land bank sufficient for about four years of development- Average
selling price is flat in 2020-2022
RATING SENSITIVITIES
Developments That May, Individually or Collectively, Lead to
Positive Rating Action- Leverage, measured by net debt/adjusted
inventory, at below 45% for a sustained period
Developments That May, Individually or Collectively, Lead to
Negative Rating Action- Leverage, measured by net debt/adjusted
inventory, at over 55% for a sustained period- Property development
EBITDA margin, excluding capitalised interest from cost of sales,
below 30% for a sustained period
LIQUIDITY AND DEBT STRUCTURE
Weak but Manageable Liquidity: Guangzhou R&F had a cash balance of
CNY39 billion, including restricted cash of CNY16 billion, at
end-1H19, which was insufficient to cover CNY58 billion of debt
maturing in one year. Its cash/short-term debt ratio declined to
0.7x by end-1H19, from 1.1x at 2017. Guangzhou R&F has CNY128.6
billion in undrawn banking facilities that may be used to cover
short-term debt and operating capex when in need. In terms of debt
structure, only 11.3% out of Guangzhou R&F's CNY195.5 billion of
debt is trust financing, which is not a big portion in its view.
Debt outstanding in 2H19 has all been refinanced. After repaying
part of the puttable bonds due in 2H19 and reducing land
acquisitions to preserve cash, Fitch believes the cash/short-term
debt ratio will improve by end-2019. Guangzhou R&F's management has
prepared cash adequate to cover debt due in three months. Out of
the CNY57.9 billion in short-term debts, CNY12.9 billion or 22.3%
of that are puttable bonds, part of which may be rolled for another
year instead of being repaid in the coming 12 months. Fitch does
not believe Guangzhou R&F will have major difficulty in refinancing
its short-term debt.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of 3 - ESG issues are credit
neutral or have only a minimal credit impact on the entity, either
due to their nature or the way in which they are being managed by
the entity.
ZHENENG JINJIANG: Moody's Affirms 'Ba3' Corp. Family Rating
-----------------------------------------------------------
Moody's Investors Service affirmed Zheneng Jinjiang Environment
Holding Co Ltd's Ba3 corporate family rating.
At the same time, Moody's has affirmed the B1 senior unsecured
rating on ZJE's USD bond.
The ratings outlook has been revised to stable from negative.
RATINGS RATIONALE
"The revision of the ratings outlook to stable reflects our
expectation that ZJE's liquidity position and credit profile will
stabilize following the acquisition of 29.79% shares of ZJE by
Zhejiang Provincial Energy Group in August 2019, making the latter
the single largest shareholder of ZJE," says Ralph Ng, a Moody's
Assistant Vice President and Analyst.
"We expect that, as a minority owned subsidiary of Zhejiang
Provincial Energy Group, ZJE will benefit going forward from
greater access to credit markets and lower financing costs," adds
Ng.
Moody's points out that Zhejiang Provincial Energy Group Co. Ltd
(ZEG, A2 stable) — a state-owned company — has a much stronger
credit profile when compared with ZJE.
ZJE's Ba3 CFR reflects (1) its solid market position and
geographically diversified waste-to-energy (WTE) assets in China,
(2) the high visibility of cash flow from its domestic business
model, and (3) the currently favorable policies of the WTE
industry.
However, ZJE's ratings are constrained by (1) the company's small
scale in the fragmented WTE industry when compared to other rated
generation companies, (2) increased business and regulatory risks
from overseas expansion, (3) its weak financial metrics due to
capital spending, and (4) an evolving regulatory regime.
For 2019-2021, Moody's expects that ZJE's average annual capital
spending will register around RMB2 billion, with adjusted funds
from operations (FFO) to debt of around 10%-11%, and FFO interest
coverage of about 3.0x.
The stable ratings outlook takes into account Moody's expectation
that over the next 12-18 months, the company's credit profile will
remain appropriately positioned at the current CFR of Ba3.
The ratings also consider the following environmental, social and
governance factors.
ZJE's business profile is associated with elevated environmental
risks, given that the WTE business is exposed to tightening
discharge and emission standards in China.
ZJE faces moderate social risks, because as a listed company, it
has established high standard health and safety regulations.
ZJE's governance risks include its aggressive financial policy,
characterized by its high financial leverage and sizable capital
spending pipeline. However, the ownership and ongoing monitoring by
ZEG will largely mitigate such risks.
Moody's could upgrade ZJE's ratings over time, if the company
improves its financial profile, or its linkages with ZEG
strengthens, such that its strategic importance to ZEG is higher
and the likelihood of support from the energy group to ZJE
increases.
Financial metrics for a ratings upgrade include retained cash flow
(RCF) to debt exceeding 12%, and adjusted FFO interest cover
exceeding 4.0x; both on a sustained basis.
ZJE's ratings will be under downward pressure if (1) there are
changes in China's regulatory environment that adversely affect the
company's profitability, (2) ZJE's liquidity position does not
stabilize as expected or if it pursues further debt-funded
expansions or overseas projects that weaken its financial and
business profile.
Financial metrics for a ratings downgrade include RCF to debt
remaining below 8%, and FFO interest cover below 2.25x over a
prolonged period.
The principal methodology used in these ratings was Unregulated
Utilities and Unregulated Power Companies published in May 2017.
Zheneng Jinjiang Environment Holding Co Ltd is a Singapore-listed
waste-to-energy operator in China. As at the end of November of
2019, Zhejiang Provincial Energy Group, via its subsidiaries, is
ZJE's single largest shareholder, owning 29.57% of the company.
ZJE operates along the whole value chain in the WTE sector, from
planning and construction to the operation and management of WTE
facilities.
As at September 30, 2019, ZJE had 21 operating WTE facilities and
five resource recycling projects, with a total waste treatment
capacity of 30,540 tons/day and electricity generation capacity of
632MW, covering 13 provinces in China.
ZHENGZHOU ZHONGRUI: Moody's Lowers CFR to B3, Outlook Stable
------------------------------------------------------------
Moody's Investors Service downgraded Zhengzhou Zhongrui Industrial
Group Co., Ltd's corporate family rating to B3 from B2 and the
senior unsecured rating to the notes issued by Zhongrui Industrial
Group Limited and guaranteed by Zhongrui, China Coal Solution Co.,
Ltd and Hechang Real Estate Group Co., Ltd to Caa1 from B3.
Moody's has changed the outlooks on all the ratings above to stable
from negative.
RATINGS RATIONALE
"The downgrades reflect our expectation that Zhongrui's credit
metrics will weaken over the next 12-18 months," says Danny Chan, a
Moody's Assistant Vice President and Analyst. "In particular,
softer sales and lower revenue recognitions from its property
business will continue to weigh on Zhongrui's credit metrics, amid
a challenging operating and credit environment for small property
developers, and despite the company's recent efforts in improving
its working capital cycles for its coal trading business and
lowering its debt."
Moody's forecasts that Zhongrui's net debt/EBITDA will weaken to
around 8.5x over the next 12-18 months from 8.2x for the 12 months
ended June 30, 2019. Meanwhile, its interest coverage will stay
weak at around 1.2x-1.3x over the next 12-18 months, similar to the
level for the 12 months ended June 30, 2019. These projected
metrics position the company's CFR at the B3 level.
"The downgrades also reflect Zhongrui's high refinancing risks,
given its large quantity of short-term debt and the tight credit
conditions in China," adds Chan.
Zhongrui's revenue will likely stay flat or fall slightly over the
next 12-18 months, given the weaker performance in its two core
businesses of property development and coal trading. In addition,
the tightened credit environment in China will constrain its
business growth and weigh on profitability over the next 1-2
years.
In the first six months of 2019, the company's revenue and EBITDA
fell by 12% and 29% respectively, following a modest 2.8% and 11%
year-on-year growth in 2018.
Moody's expects that the company will report weaker contracted
sales of around RMB25-RMB26 billion over the next 12-18 months,
including contracted sales from Shenzhen Yunchang Management
Consulting Co., Ltd and other joint ventures compared to RMB29
billion in 2018.
Moody's points out that the effect of softened sales on cash flow
could be partly mitigated by the company's efforts to improve
working capital and lower its debt levels.
Over the past 9 months, the company has reduced its gross debt by
about RMB5 billion through (1) controlling land acquisitions, (2)
trimming down its factoring business, and (3) shortening its
working capital cycles for its coal trading business.
On liquidity, Zhongrui's cash holdings of RMB7.1 billion as of
September 30, 2019, including unrestricted and restricted cash on a
consolidated basis, was insufficient to cover its short-term debt
of about RMB10 billion as of the same date. Nevertheless, Moody's
expects that the company can manage the refinancing of its trade
debt, which is mostly supported by cash, inventory or accounts
receivables.
Zhongrui's will also have about RMB2.6 billion of bonds maturing
over the next 12 months, including RMB2 billion onshore bonds due
July and August 2020, and USD85 million offshore bonds due February
2020.
While the tight credit conditions in China could increase
uncertainties, Zhongrui has a track record of accessing funding
from the onshore and offshore debt capital markets. In July 2019,
Zhongrui raised USD100 million through a private placement in the
offshore bond markets. Any sign of a weakening in the company's
access to funding would further pressure Zhongrui's rating.
Zhongrui's B3 CFR reflects the company's track record in property
development in Zhengzhou, Henan. It also considers the strengths of
its coal solution business in terms of its scale, track record in
coal trading, professional integrated management services and
quality clients, and the risk diversification offered by this
business.
However, Zhongrui's B3 CFR is constrained by its high debt leverage
and weak interest coverage, because of the debt-funded growth of
its property and coal trading businesses, as well as high
refinancing risks.
In terms of environmental, social and governance risks, Moody's has
considered Zhongrui's moderate governance risk, due to its private
company status, with less rigorous corporate governance
requirements when compared with listed companies. Zhongrui's
ownership is also concentrated in its chairman, who owns 70% of the
company. But, this risk is mitigated by the track record of equity
provided by the chairman to support the growth of Zhongrui's
businesses.
Zhongrui's B3 senior unsecured debt rating is one notch lower than
its CFR because of structural subordination risk.
This risk reflects the consideration that most claims are
positioned at the operating subsidiaries and have priority over
claims at the holding company in a bankruptcy scenario. In
addition, the holding company lacks significant mitigating factors
to reduce structural subordination risk for its unsecured
debtholders. As a result of these factors, the likely recovery rate
for claims at the holding company will be lower.
The stable ratings outlook reflects Moody's expectation that the
company will maintain stable credit metrics over the next 12-18
months, and can manage its refinancing needs over the next 12
months.
Downward rating pressure could arise, if Zhongrui''s liquidity
deteriorates due to (1) a material decline in contracted sales or
cash flow, or (2) an inability to refinance its maturing debt over
the next 6-12 months.
Credit metrics that would indicate a possible downgrade include (1)
EBITDA/interest falling below 1.0x, or (2) cash/short-term debt
dropping below 50% on a sustained basis.
On the other hand, Moody's could upgrade the rating if Zhongrui (1)
improves its operating performances, (2) reduces its debt leverage,
and (3) strengthens its liquidity and broadens its funding access.
Credit metrics that would indicate a possible upgrade include (1)
net debt/EBITDA falling under 5.0x-5.5x, (2) EBITDA/interest
consistently above 1.5x, and (3) cash/short-term debt staying above
75% on a sustained basis.
The principal methodology used in these rating was Homebuilding And
Property Development Industry published in January 2018.
Zhengzhou Zhongrui Industrial Group Co., Ltd is a privately-owned
enterprise engaged in two major businesses: property development
and coal solutions. At June 30, 2019, the company was 70% owned by
Mr. Wan Wongzing, its founder and chairman, and 30% by Mr. Liu Yi.
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ANS APRATMENTS: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: ANS Apartments Private Limited
Shop No. 108, First Floor
Vardhman Mayur Market
Mayur Vihar, Phase-III
Delhi 110096
- and -
Alstonia Apartment
Plot No. 10, Still Floor
K Block, Sector-33, PI 1&2
Gautam Budh Nagar
Greater Noida 201308
Insolvency Commencement Date: December 6, 2019
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: June 2, 2020
Insolvency professional: Ram Phal Bhardwaj
Interim Resolution
Professional: Ram Phal Bhardwaj
310/25, Onkar Nagar-B
Tri-Nagar, Delhi 110035
E-mail: bhardwajca@hotmail.com
Classes of creditors: Home Buyers
Insolvency
Professionals
Representative of
Creditors in a class: Ravi Bansal
Pradeep Upadhyay
Kamlesh Kumar Gupta
Last date for
submission of claims: December 23, 2019
BLUEJAY NUTS: Ind-Ra Migrates B+ Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Bluejay Nuts
Private Limited's (BNPL) Long-Term Issuer Rating to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will now
appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR32.5 mil. Proposed long-term loan migrated to non-
cooperating category with Provisional IND B+ (ISSUER NOT
COOPERATING) rating; and
-- INR167.5 mil. Proposed fund-based limit migrated to non-
cooperating category with Provisional IND B+ (ISSUER NOT
COOPERATING) / Provisional IND A4 (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 21, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in March 2015, BNPL is engaged in the processing and
export of cashew nuts.
DABRA AGRO: Ind-Ra Lowers Long Term Issuer Rating to 'D'
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Dabra Agro Pvt
Ltd.'s (DAPL) Long-Term Issuer Rating to 'IND D (ISSUER NOT
COOPERATING)' from 'IND B+ (ISSUER NOT COOPERATING)'. The issuer
did not participate in the rating exercise despite continuous
requests and follow-ups by the agency. Thus, the rating is based on
the best available information. Therefore, investors and other
users are advised to take appropriate caution while using these
ratings. The rating will now appear as 'IND D (ISSUER NOT
COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR112.5 mil. Fund-based working capital limit (long term)
downgraded with IND D (ISSUER NOT COOPERATING) rating; and
-- INR31.36 mil. Term loans (long term) due on December 2021
downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information.
KEY RATING DRIVERS
The downgrade reflects delays in debt servicing by DAPL, the
details of which are not available.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months would be positive for the ratings.
COMPANY PROFILE
DAPL has a rice processing unit in Dabra, Madhya Pradesh. The
facility has been operational since FY14.
FAIR N FLAIR: Ind-Ra Lowers LongTerm Issuer Rating to 'D'
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Fair N Flair
Garments' Long-Term Issuer Rating to 'IND D (ISSUER NOT
COOPERATING)' from 'IND B+ (ISSUER NOT COOPERATING)'. The issuer
did not participate in the rating exercise despite continuous
requests and follow-ups by the agency. Thus, the rating is based on
the best-available information. Therefore, investors and other
users are advised to take appropriate caution while using these
ratings. The rating will now appear as 'IND D (ISSUER NOT
COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR430 mil. Fund-based limits (Long-term) downgraded with IND
D (ISSUER NOT COOPERATING) rating; and
-- INR20.1 mil. Term loan (Long-term) due on December 2023
downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
best-available information.
KEY RATING DRIVERS
The downgrade reflects delays in debt servicing by Fair N Flair
Garments, the details of which are not available.
COMPANY PROFILE
The company is engaged in the manufacture and export of garments to
European countries.
GUJARAT CONSTRUCTION: Ind-Ra Assigns 'BB-' LongTerm Issuer Rating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Gujarat
Construction Co. (GCC) a Long-Term Issuer Rating of 'IND BB-'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR40 mil. Fund-based limits assigned with IND BB-/Stable
rating; and
-- INR76.6 mil. Non-fund-based limits assigned with IND A4+
rating.
KEY RATING DRIVERS
The ratings reflect GCC's medium scale of operations, as indicated
by revenue of INR1,310.71 million in FY19 (FY18: INR
982.89million). The revenue grew due to an increase in work orders
from the state governments of Gujarat and Rajasthan. The revenue in
FY19 includes the income of INR1,056.82 million from sublet
agreements in Gujarat and Rajasthan. At end-October 2019, GCC had
an order book of INR2,534.28 million (1.93x of the total revenue in
FY19).
Liquidity Indicator – Stretched: The company had liquid cash and
cash equivalents of INR21.00 million at end-FY19 (end-FY18:
INR4.22million) against total debt of INR130.29 million (INR106.09
million). GCC's average use of the fund-based facility was 96.71%
for the 12 months ended November 2019. Cash flow from operations
turned positive at INR41.75 million in FY19 (FY18: negative
INR78.86 million), as the working capital cycle shortened to 31
days in FY19 (FY18: 39 days) owing to a decline in stockholding
days.
The ratings are also constrained by the partnership nature of the
organization.
The rating factor in moderate credit metrics. The metrics improved
in FY19 due to an increase in the absolute EBITDA to INR90.22
million (FY18: INR66.87 million). The interest coverage (operating
EBITDA/gross interest expense) improved to 4.88x in FY19 (FY18: 4x)
and net leverage (total adjusted net debt/operating EBITDAR)
improved to 1.21x (1.52x).
The ratings, however, are supported by GCC's healthy EBITDA
margins. The margins rose to 6.88% in FY19 (FY18: 6.80%) because of
a fall in personnel expenses. The return on capital employed was
30.6% in FY19 (FY18: 28.7%).
The ratings are supported by the promoters' experience of two
decades in the construction of drainage systems, water supply
pipelines, and other construction projects.
RATING SENSITIVITIES
Negative: A decline in the scale of operations and deterioration in
credit metrics, with interest coverage falling below 1.70x, could
lead to negative rating action.
Positive: A sustained improvement in the revenue and EBITDA margins
or maintaining comfortable credit metrics could lead to positive
rating action.
COMPANY PROFILE
GCC was established in 1992 as a partnership firm by Janak Kumar
Bholabhai Patel, Navinkumar Bholabhai Patel and Jay Janakkumar
Patel in Mehasana. It is registered as 'AA' class approved the
contractor by the Government of Gujarat and the firm is primarily
engaged in the water supply and sewage network and environmental
projects.
HINDUSTAN CONCRETES: Ind-Ra Migrates B+ Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Hindustan
Concretes' (HC) Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR75.0 mil. Fund-based limits migrated to non-cooperating
category with IND B+ (ISSUER NOT COOPERATING) rating; and
-- INR4.0 mil. Non-fund-based limits migrated to non-cooperating
category with IND A4 (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 17, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Established as a partnership firm in 2015 by Mr. Veeru Manik and
Mr. Pravin Bansal, Jharkhand-based HC manufactures highly durable
and heavy-duty pre-stressed concrete poles. These poles are used
extensively in the electrical industry, for establishing electrical
connections and fittings.
INDO WORLD: Insolvency Resolution Process Case Summary
------------------------------------------------------
Debtor: M/s Indo World Infrastructure Private Limited
99, Patparganj
Delhi, DL 110091
IN
Insolvency Commencement Date: December 9, 2019
Court: National Company Law Tribunal, New Delhi Bench-V
Estimated date of closure of
insolvency resolution process: June 9, 2020
(180 days from commencement)
Insolvency professional: Vinay Talwar
Interim Resolution
Professional: Vinay Talwar
1, Link Raod
Middle Basement
Jangpura Extension
New Delhi 110014
E-mail: vinay@corporateconsultants.in
Last date for
submission of claims: December 26, 2019
JAYA POULTRY: Ind-Ra Lowers Long Term Issuer Rating to 'D'
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Jaya Poultry
Farm's Long-Term Issuer Rating to 'IND D (ISSUER NOT COOPERATING)'
from 'IND B (ISSUER NOT COOPERATING)'. The issuer did not
participate in the rating exercise despite continuous requests and
follow-ups by the agency. Thus, the rating is based on the best
available information. Therefore, investors and other users are
advised to take appropriate caution while using the rating. The
rating will now appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR85.1 mil. Long-term loans (Long-term) due on September 2027
downgraded with IND D (ISSUER NOT COOPERATING) rating; and
-- INR40 mil. Fund-based working capital limits (Long-term/
Short-term) downgraded with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
KEY RATING DRIVERS
The downgrade reflects ongoing delays in the term loan repayments,
as on December 17, 2019. The reasons for the same are unknown to
Ind-Ra.
RATING SENSITIVITIES
Positive: A positive rating action may result from regular and
timely debt-service for three consecutive months.
COMPANY PROFILE
Established in November 2017, Jaya Poultry Farm is a partnership
firm engaged in the business of poultry layer farming.
K.D. LIQUOR: Ind-Ra Migrates 'BB' Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated K.D. Liquor and
Fertilizer Private Limited's (KDLFPL) Long-Term Issuer Rating to
the non-cooperating category. The issuer did not participate in the
rating exercise, despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR110 mil. Fund-based limits migrated to non-cooperating
category with IND BB (ISSUER NOT COOPERATING) rating;
-- INR5 mil. Proposed fund-based limits migrated to non-
cooperating category with Provisional IND BB (ISSUER NOT
COOPERATING) rating; and
-- INR80 mil. Non-fund-based limits migrated to non-cooperating
category with IND A4+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 26, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 1995 by Mr. Pradyut Sinha, Mr. Kamal Pandey, and
Mr. Kedarnath Banshal, KDLFPL is engaged in the production and
packaging of country liquor in West Bengal.
KAULA AGRO: Insolvency Resolution Process Case Summary
------------------------------------------------------
Debtor: Kaula Agro Foods Pvt Ltd
VIII/141a, Edavanakavu Temple Road
Kurichilakode, Kodanadu P.O.
Perumbavoor, Kerala 683544
Insolvency Commencement Date: December 4, 2019
Court: National Company Law Tribunal, Kochi Bench
Estimated date of closure of
insolvency resolution process: June 1, 2020
(180 days from commencement)
Insolvency professional: Mr. K.P. Dileep
Interim Resolution
Professional: Mr. K.P. Dileep
Veluthedath House
Ponnurunni, Vytilla PO
Cochin 682019
E-mail: kpdileep57@gmail.com
- and -
Falt No. 8A, Paradiso Apartments
Paradise Road, Vytilla
Cochin 682019
Last date for
submission of claims: December 18, 2019
LEEL ELECTRICALS: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Leel Electricals Limited
Registered office:
Unit No. 8 Block-A
Kakrala Main Road
Sector 80 Industrial Area
Phase-II Noida
Gautam Budha Nagar
Uttar Pradesh 201305
Corporate office:
159, Okhla Industrial Estate
Phase-III, New Delhi 110020
Manufacturing Plants:
A-146, (B&C) RIICO Industrial Area
Bhiwadi Distt. Alwar
Rajasthan 301019
Industrial Area, Kala-Amb
Trilokpur Road
Sirmour, Nahan
Himachal Pradesh
Plot No. 24, Sector 2
IIE, SIDCUL Pantnagar
Uttarakhand
Plot No. S21 & 22, Non SEZ
Phase III, Sipcot Road
Mugundarayapuram
Ranipet, Vellore Distt
Tamilnadu
Bahadarabad, Mehdood
Industrial Park
2 Salempur
SIDCUL, Haridwar
Uttarakhand
Village Nizampur
Tauru-Rewari
Tehsil Tauru
Dist. Mewat
Haryana
Insolvency Commencement Date: December 9, 2019
Court: National Company Law Tribunal, Gurgaon Bench
Estimated date of closure of
insolvency resolution process: June 6, 2020
(180 days from commencement)
Insolvency professional: Anil Rustgi
Interim Resolution
Professional: Anil Rustgi
H.No. 524, Tower-6
H E W O-I
Sector-56, Gurgaon
Haryana 122011
E-mail: anil_rustgi@yahoo.co.in
leelelectricals.cirp@gmail.com
Last date for
submission of claims: December 24, 2019
M K S OIL: Insolvency Resolution Process Case Summary
-----------------------------------------------------
Debtor: M K S Oil Private Limited
House No. 323 and 324, First Floor
Block B-4, Sector-8
Rohini, Delhi 110085
Insolvency Commencement Date: December 9, 2019
Court: National Company Law Tribunal, Delhi Bench
Estimated date of closure of
insolvency resolution process: June 6, 2020
Insolvency professional: Atul Mittal
Interim Resolution
Professional: Atul Mittal
174, BALCO Apartments
Plot No. 58, IP Extn.
Patparganj, Delhi 110092
E-mail: a.mittalmc@gmail.com
- and -
163, BALCO Apartments
Plot No. 58, IP Extn.
Patparganj, Delhi 110092
E-mail: irp.rp.amittal@gmail.com
Last date for
submission of claims: December 23, 2019
MITTAL FIBER: Ind-Ra Migrates B+ LT Issuer Rating to NonCooperating
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated M/s. Mittal
Fibers' (MF) Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR100 mil. Fund-based working capital limits migrated to non-
cooperating category with IND B+ (ISSUER NOT COOPERATING)
rating; and
-- INR0.845 mil. Long-term loans due on July 2021 migrated to
non-cooperating category with IND B+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 3, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
MF was established by Sanjay Agarwal in 2007. The firm is engaged
in the ginning and pressing of cotton in Shahada, Maharashtra. It
operates 36 ginning and one pressing machine. The firm also has an
oil mill. The proprietor has another firm that is engaged in a
similar business in Khetia, Madhya Pradesh.
MY CAR: CRISIL Maintains 'D' Ratings in Not Cooperating
-------------------------------------------------------
CRISIL said the ratings on bank facilities of MY Car Private
Limited (MCPL) continues to be 'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 13 CRISIL D (ISSUER NOT
COOPERATING)
Inventory Funding 11.5 CRISIL D (ISSUER NOT
Facility COOPERATING)
Term Loan 2.3 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with MCPL for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MCPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MCPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of MCPL continues to be 'CRISIL D Issuer not
cooperating'.
MCPL, incorporated in 2000, has a dealership of Maruti Suzuki India
Ltd (MSIL). The company currently runs three showrooms, one each at
Kanpur, Bandha and Farukabad, and five workshops, three in Kanpur
and one each in Bandha and Farukabad. Mr Vijay Garg, Ms Kavita Garg
and Mr Kunal Garg are the promoters.
NEW LAXMI: Ind-Ra Migrates BB+ LT Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated New Laxmi Steel &
Power Private Limited's (NLSPPL) Long-Term Issuer Rating to the
non-cooperating category. The issuer did not participate in the
rating exercise, despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR400 mil. Fund-based limits migrated to non-cooperating
category with IND BB+ (ISSUER NOT COOPERATING) rating; and
-- INR50 mil. Non-fund-based limits migrated to non-cooperating
category with IND A4+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 26, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2007, NLSPPL manufactures Thermo mechanically
treated (TMT) steel bars, structural steel, and billets. Its
manufacturing plant is situated in Khurda, Odisha with an installed
capacity of 72,000 metric ton (MT) of TMT and 18,000MT of
structured steel. The company also has a galvanizing unit with a
capacity of 29,000MT in Odisha.
PAGODA STEELS: CRISIL Maintains 'D' Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Pagoda Steels Private
Limited (PSPL) continues to be 'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12.00 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 0.59 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 2.41 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with PSPL for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of PSPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on PSPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of PSPL continues to be 'CRISIL D Issuer not
cooperating'.
Furthermore, the company has not paid the fee for conducting rating
surveillance as agreed to in the rating agreement.
PSPL was established in 2005; in 2012, the Bhavnagar
(Gujarat)-based Patel family took over the company's operations.
PSPL is currently being managed by Mr. Jignesh R Patel. The company
manufactures TMT bars under its brand, Pagoda, at its facility in
Bhavnagar.
RAGHAV INDUSTRIES: CRISIL Lowers Rating on INR8cr Cash Loan to D
----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Raghav
Industries - Una (RI) to 'CRISIL D/CRISIL D' from 'CRISIL
B/Stable/CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL D (Downgraded from
'CRISIL B/Stable')
Letter of Credit 3 CRISIL D (Downgraded from
'CRISIL A4')
Long Term Loan 1.5 CRISIL D (Downgraded from
'CRISIL B/Stable')
The downgrade reflects delay in meeting term debt obligation over
the past six months, resulting in the account turning SMA-1, over
the past six months.
The firm also has large working capital requirement and a modest
scale of operations. However, it benefits from the extensive
experience of proprietor in the packaging industry.
Key Rating Drivers & Detailed Description
Weaknesses:
* Delays in debt servicing: There have been delays in servicing
term debt obligation during the past six months.
* Large working capital requirement: Gross current assets (GCAs)
were high at 363 days as on March 31, 2018, due to sizeable
inventory of 147 days and receivables of 136 days. Against this,
the firm gets credit of 90-120 days from suppliers, leading to
dependence on external borrowing. Operations are expected to remain
working capital intensive, with GCAs at 300-320 days over the
medium term.
* Modest scale of operations: With revenue of Rs 32.61 crore in
fiscal 2018, the scale remains small in the competitive packaging
industry that has more than 10,000 players due to a low entry
barrier and limited product differentiation. This limits bargaining
power with customers and suppliers, thereby constraining the
operating margin.
Strength:
* Extensive industry experience of the proprietor: The proprietor
has six years of experience in the packaging industry. This has
helped the firm to establish a strong relationship with suppliers
and customers, ensuring consistent order flow. Benefits from the
experience are expected to continue, with revenue growth expected
at 5-10% per fiscal over the medium term.
Liquidity Poor
Liquidity is poor, as indicated by instances of delay in repayment
of the loan.
Rating Sensitivity factors
Upward Factors:
* Track record of timely debt servicing for at least 90 days, with
utilisation of the working capital within the limit
* Significant improvement in operating performance, with adequate
cash accrual and imrpovemnt in financial risk profile.
RI, set up in 2010, is managed by the proprietor, Mr Bhushan
Sharma. The firm manufactures low-density polyethylene sheets and
rolls used for packaging in the automobile and textile industries.
It is based in Himachal Pradesh.
SAARAS OIL: Ind-Ra Migrates BB LT Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Saaras Oil Mill's
(SOM) Long-Term Issuer Rating to the non-cooperating category. The
issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings. The rating will now appear as 'IND BB
(ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR29.44 mil. Term loan due on February 2024 migrated to non-
cooperating category with IND BB (ISSUER NOT COOPERATING)
rating; and
-- INR50 mil. Fund-based working capital limit migrated to non-
cooperating category with IND BB (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 21, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
SOM was incorporated in 2016 as a partnership firm by Madhya
Pradesh-based Rathore family. The firm operates a cotton ginning
and processing unit with an installed capacity of 300 bales per
day.
SHIV SHAKTI: Ind-Ra Migrates B LT Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Shiv Shakti Cold
Storage's (SSCS) Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND B (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating action is:
-- INR52 mil. Fund-based working capital limits migrated to non-
cooperating category with IND B (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 31, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 1997, SSCS is a Gujarat-based partnership firm. The
company runs a 6,250-metric-tonne cold storage unit for potatoes
and is also involved in the trading of potatoes.
SHREE GANESH: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Shree Ganesh Stampings Private Limited
Plot no. L-135/5/2, MIDC
A/P-Ahmednagar 414111
Maharashtra
Insolvency Commencement Date: December 6, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: June 2, 2020
Insolvency professional: CA Fanendra Harakchand Munot
Interim Resolution
Professional: CA Fanendra Harakchand Munot
6th Floor, Mafatlal House Building
H T Parekh Marg
Backbay Reclamation
Mumbai 400020
E-mail: fhmunot@gmail.com
- and -
101, Monoplex Plaza
Deep Bungalow Chowk
Pune 411016
Mobile: 7588325800
Last date for
submission of claims: December 24, 2019
SPG GLOBAL: Insolvency Resolution Process Case Summary
------------------------------------------------------
Debtor: SPG Global Distribution Pvt. Ltd.
B-363, 364 & 365, Nehru Ground
NIT Faridabad HR 121001
India
Insolvency Commencement Date: December 6, 2019
Court: National Company Law Tribunal, Chandigarh Bench
Estimated date of closure of
insolvency resolution process: June 4, 2020
Insolvency professional: Divyanshu Mishra
Interim Resolution
Professional: Divyanshu Mishra
F 601, Sujjan Vihar
Sector 43
Gurgaon 122002
E-mail: divyanshurp@gmail.com
irp.spgglobaldist@gmail.com
Last date for
submission of claims: December 20, 2019
SRI LAKSHMIKANTHA: CRISIL Keeps 'D' Rating in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Sri Lakshmikantha
Spinners Limited (SLSL) continues to be 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 47.85 CRISIL D (ISSUER NOT COOPERATING)
Long Term Loan 65.15 CRISIL D (ISSUER NOT COOPERATING)
CRISIL has been consistently following up with SLSL for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SLSL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SLSL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of SLSL continues to be 'CRISIL D Issuer not
cooperating'.
Established in 2004 and based in Hyderabad (Telangana), SLSL
manufactures cotton yarn. Promoted by Mr. Chinnarappagari Swamy
Reddy and his family, the day-to-day operations are managed by Mr.
Reddy's son, Mr. Chinnarappagari Rameswara Reddy.
SYNERGY FABRICS: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Synergy Fabrics Private Limited
505, Savoy Chambers
Linking Road Extn
Near Juhu Garden
Santacruz (West)
Mumbai 400054
Maharashtra, India
Insolvency Commencement Date: December 3, 2019
Court: National Company Law Tribunal, Navi Mumbai Bench
Estimated date of closure of
insolvency resolution process: May 31, 2020
(180 days from commencement)
Insolvency professional: Asha Manajit Ghosal
Interim Resolution
Professional: Asha Manajit Ghosal
301, Arneja Corner
Plot no. 71, Sector-17
Vashi, Navi Mumbai 400705
E-mail: asha.ghosal@amgadvisory.in
ipsynergy@amgadvisory.in
Last date for
submission of claims: December 24, 2019
TIRUPATI PADDY: CRISIL Maintains 'D' Debt Ratings in NonCooperating
-------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Tirupati Paddy
Products (TPP) continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Warehouse Receipts 10 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with TPP for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of TPP, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on TPP is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of TPP continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Incorporated in 2011, as a proprietorship firm, Tirupati Paddy
Products is engaged in trading of agriculture products such as
wheat, maize, paddy and rice. The company is managed by Mr.
Chandrakesh Yadav. The company has its registered office in Mohali,
Punjab.
TOSHNIWAL ENTERPRISES: Insolvency Resolution Process Case Summary
-----------------------------------------------------------------
Debtor: Toshniwal Enterprises Controls Limited
1A, Arkur Datta Lane
Kolkata 700012
Insolvency Commencement Date: November 22, 2019
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: May 19, 2020
Insolvency professional: Kamal Nayan Jain
Interim Resolution
Professional: Kamal Nayan Jain
Klass Insolvency Resolution Professionals
Pvt. Ltd.
Todi Chambers
2 Lal Bazaar Street
2nd Floor, Room No. 204 & 205
Kolkata 700001
West Bengal
E-mail: knjain@knjainco.com
ip.knjain@gmail.com
Last date for
submission of claims: December 9, 2019
TRANSPORT SOLUTIONS: CRISIL Keeps 'D' Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Transport Solutions
India Private Limited (TSIPL; part of the TSI group) continues to
be 'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 20 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 5 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with TSIPL for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of TSIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on TSIPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of TSIPL continues to be 'CRISIL D Issuer not
cooperating'.
The TSI group was established in 2006 and manufactures carriers
used in logistic services. It manufactures tippers and trailers
under TSIPL, car and truck carriers under LIAPL, and refrigerated
carriers under HIPL. Its promoters have industry experience of over
four decades.
TRIPATHI HOSPITAL: CRISIL Lowers Rating on INR20cr Loan to D
------------------------------------------------------------
CRISIL said the ratings on bank facilities of Tripathi Hospital
Private Limited (THPL) have been downgraded from 'CRISIL B+/Stable
Issuer Not Cooperating' to 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 20 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with THPL for obtaining
information through letters and emails dated June 28, 2018,
December 10, 2018 and September 30, 2019 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
The rating reflects instances of delay in payment of payment of
interest and principal and term loan.
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of THPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on THPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' category or
lower'.
Therefore, on account of inadequate information, lack of management
cooperation, and delays in term loan payment, the ratings on bank
facilities of THPL have been downgraded from 'CRISIL B+/Stable
Issuer Not Cooperating' to 'CRISIL D Issuer Not Cooperating'.
Tripathi Hospital Private Limited, incorporated in November 2001,
provides medical services in the fields of orthopaedics and
gynaecology/obstetrics. It was originally established as a
partnership firm in 2000 and was reconstituted as a private limited
company in 2001. The company is managed by Mr B K Tripathi and his
wife Ms. Nidhi Tripathi. It has a 100-bed hospital at Noida in
Uttar Pradesh.
TYBROS (INDIA): Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: M/s Tybros (India) Tours Private Limited
5/54, First Floor
Main Shankar Road
Old Rajinder Nagar
New Delhi 110060
Insolvency Commencement Date: December 4, 2019
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: June 1, 2020
(180 days from commencement)
Insolvency professional: Mr. Sunil Kumar Agrawal
Interim Resolution
Professional: Mr. Sunil Kumar Agrawal
E-29, South Extension-II
New Delhi 110049
E-mail: aggarwalsk21@yahoo.com
- and –
904, GF, Sector-7C
Faridabad 121006
E-mail: irptybrosindia2019@gmail.com
Last date for
submission of claims: December 18, 2019
UDAY AUTOLINK: CRISIL Maintains 'C' Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Uday Autolink Private
Limited (UAPL) continues to be 'CRISIL C Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Drop Line 8 CRISIL C (ISSUER NOT
Overdraft COOPERATING)
Facility
Electronic 6 CRISIL C (ISSUER NOT
Dealer Financing COOPERATING)
Scheme(e-DFS)
Term Loan 24.8 CRISIL C (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with UAPL for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of UAPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on UAPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of UAPL continues to be 'CRISIL C Issuer not
cooperating'.
Furthermore, the company has not paid the fee for conducting rating
surveillance as agreed to in the rating agreement.
UAPL, set up in 2012, is an authorised dealer for Maruti Suzuki
India Ltd (MSIL). UAPL operates a 50,000-square-foot sales,
services and spares (3S) showroom in eastern Ahmedabad. The
operations are managed by the promoters, Mr. Uday Bhatt, his
brother, Mr. Nilesh Bhatt, and son, Mr. Hemant Bhatt.
UNIVERSAL EDUCATIONAL: Ind-Ra Keeps BB+ Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained the Universal
Educational Society's bank facilities' ratings in the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR335.53 mil. Term loans due on June 30, 2027, maintained in
non-cooperating category with IND BB+ (ISSUER NOT
COOPERATING) rating; and
-- INR35.00 mil. Overdraft maintained in non-cooperating category
with IND BB+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 21, 2017. Ind-Ra is unable to provide an update as the
agency does not have adequate information to review the rating.
COMPANY PROFILE
Incorporated in 2008, Universal Educational Society manages and
operates the Universal group of institutes in Mohali District,
Punjab.
VARDHMAN SPINNERS: CRISIL Keeps 'B' Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Vardhman Spinners
(VS) continues to be 'CRISIL B/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit .7 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Proposed Cash 5.3 CRISIL B/Stable (ISSUER NOT
Credit Limit COOPERATING)
Proposed Term Loan 6.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with VS for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of VS, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on VS is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of VS continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Furthermore, the company has not paid the fee for conducting rating
surveillance as agreed to in the rating agreement.
VS, promoted as a partnership firm in 2008, has recently set up a
facility for manufacturing blankets. The firm is promoted and
managed by its partners Mr. Ajay Kumar Jain, Mr. Hemant Jain, Ms.
Dipti Jain, and Ms. Shashi Jain.
VIJAI SPINNERS: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Vijai Spinners (RJPM) Private Limited
18-A, Pugalendhi Road Cotton Market
Rajapalayam Virudhunagar
TN 626117
IN
Insolvency Commencement Date: December 9, 2019
Court: National Company Law Tribunal, Coimbatore Bench
Estimated date of closure of
insolvency resolution process: June 6, 2020
Insolvency professional: B. Sathrukkanan
Interim Resolution
Professional: B. Sathrukkanan
9A/1 Ramraj Mansion
First Floor
N.R.G. Street
K.K. Pudur Post
Coimbatore 641038
Tamil Nadu
E-mail: prathyumnan2002@yahoo.com
Last date for
submission of claims: December 25, 2019
VIKAS BUILDERS: CRISIL Withdraws D Rating on INR15cr Term Loan
--------------------------------------------------------------
Due to inadequate information, CRISIL, in line with SEBI
guidelines, had migrated the rating of Vikas Builders (VB) to
'CRISIL D/Issuer not cooperating'. CRISIL has withdrawn its rating
on bank facility of VB following a request from the company and on
receipt of a 'no dues certificate' from the banker. Consequently,
CRISIL has migrated the ratings on bank facilities of VB from
'CRISIL D/Issuer Not Cooperating' to 'CRISIL D'. The rating action
is in line with CRISIL's policy on withdrawal of bank loan
ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 15 CRISIL D (Migrated from
'CRISIL D ISSUER NOT
COOPERATING'; Rating
Withdrawn)
VB, set up by Mr. Harakchand Jain in 2013 as a proprietorship
concern, is executing a residential dedevelopment project at Kalyan
in Thane, Maharashtra.
VINTEGRATE TECHNOLOGY: CRISIL Cuts Rating on INR5.7cr Loan to D
---------------------------------------------------------------
Due to inadequate information and in line with Securities and
Exchange Board of India guidelines, CRISIL had migrated its ratings
on the bank facilities of Vintegrate Technology Private Limited
(VTPL) to 'CRISIL BB-/Stable Issuer Not Cooperating'. However,
management has started sharing information necessary for a
comprehensive review of the ratings. Consequently, CRISIL is
donwgraded the ratings from 'CRISIL BB-/Stable Issuer Not
Cooperating' to 'CRISIL D'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit .5 CRISIL D (Downgraded from
'CRISIL BB-/Stable ISSUER
NOT COOPERATING')
Long Term Loan 5.7 CRISIL D (Downgraded from
'CRISIL BB-/Stable ISSUER
NOT COOPERATING')
The migration reflects delay in honouring of term debt obligations
by VTPL.
The rating reflects delay in honouring of term debt obligations and
susceptibility of the company to risks inherent in the real estate
industry. These weaknesses are partially offset by promoter's
experience in real estate industry.
Key Rating Drivers & Detailed Description
Weaknesses
* Delay in honouring of term debt obligations: Due to poor
liquidity on account of modest inflows from rental income, there
have been delays in the honouring of term debt obligations by
VTPL.
* Susceptibility to cyclicality inherent in real estate sector
Exposure to risks and cyclicality inherent in the real estate
sector may result in volatility in cash flow. The company is
exposed to vacancy risk as only a small proportion of the leasable
area has been leased out till date.
Strength
* Promoters' experience in the industry:
Promoters' experience in the industry has resulted in deep
understanding of industry dynamics. CRISIL believes VTPL will
benefit from the promoters' experience.
Liquidity Poor
Bank limit utilization was close to 100% averaged over 12 months
ended Nov, 2019. Further, there have been instances of delay in
servicing of term debt obligations.
Rating Sensitivity factors
Upward Factors:
* Timely honouring of debt obligations for 3 months, at least
* Increase in occupancy rate of the property, resulting in increase
in rent income.
Vintegrate is constructing a commercial property in Panchkula,
Chandigarh. The property is expected to have lease space of around
1 lakh sq. ft and is expected to be completed in 2018.
VISHAL CHAIN: CRISIL Keeps 'B' Rating in Not Cooperating
--------------------------------------------------------
CRISIL said the ratings on bank facilities of Vishal Chain and
Jewellery Private Limited (VCJ) continues to be 'CRISIL B/Stable
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term
Bank Loan Facility 15 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with VCJ for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of VCJ, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on VCJ is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of VCJ continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Incorporated in 2000, VCJ is engaged in manufacturing of, and
wholesale trading in, gold ornaments, particularly gold chains. The
company operates from Karol Bag (Delhi). The promoter's family has
over 15 years of experience in the jewellery business and a
customer base across northern India.
=================
I N D O N E S I A
=================
PAKUWON JATI: Moody's Affirms Ba3 CFR, Outlook Stable
-----------------------------------------------------
Moody's Investors Service affirmed the Ba2 corporate family rating
of Pakuwon Jati, Tbk. (P.T.).
At the same time, Moody's affirmed the Ba2 backed senior unsecured
rating on the 2024 notes issued by Pakuwon Prima Pte. Ltd., a
wholly owned and guaranteed subsidiary of Pakuwon Jati.
The outlook on the ratings is stable.
RATINGS RATIONALE
"The rating affirmation reflects Pakuwon Jati's strong credit
metrics and very good liquidity even in the current subdued
operating environment, supported by a well-balanced income stream
from its high-quality portfolio of development and investment
properties," says Jacintha Poh, a Moody's Vice President and Senior
Credit Officer.
"The company's investment properties comprise mostly retail malls
that generate stable and recurring income, mitigating the volatile
cash flow from its cyclical property development business," adds
Poh, who is also Moody's Lead Analyst for Pakuwon Jati.
Pakuwon Jati's marketing sales have slowed significantly in 2019 as
the challenging macro-environment and election activities in the
first half of the year have weakened demand for property. In the
first nine months of 2019, the company achieved IDR1.0 trillion of
marketing sales, less than half the IDR2.2 trillion achieved in
2018.
While the weaker marketing sales will lead to a decline in Pakuwon
Jati's development revenue over the next 12-18 months, total
revenue will be supported by continued growth in its leasing
business. Moody's expects Pakuwon Jati's revenue to register around
IDR7.3 trillion in 2020 (based on recognition of high rise building
revenue by percentage of completion), 53% of which will be from
recurring sources.
More broadly, Moody's also expects Pakuwon Jati's resilient leasing
business will continue to support its strong credit metrics.
Specifically, over the next 12-18 months, Moody's expects the
company's adjusted debt/homebuilding EBITDA to be around 1.2x and
homebuilding EBIT/interest expense to be 9.5x. At the same time,
Moody's expects Pakuwon Jati's recurring cash flows to cover around
5.5x of interest paid.
Pakuwon Jati's rating is constrained by the company's small scale
relative to its regional and global peers, and its lack of
geographic diversification.
Pakuwon Jati continues to maintain very good liquidity. As of
September 30, 2019, the company had a cash position of IDR4.5
trillion, and Moody's expects it to generate around IDR2.7 trillion
of operating cash flow over the next 15 months.
Such an amount will be more than sufficient to repay its debt
maturing over the next 15 months of around IDR1.1 trillion,
dividend payment of around IDR400 billion, and projected capital
spending of around IDR2.3 trillion.
In terms of environmental, social and governance factors, Moody's
has considered the governance risk stemming from Pakuwon Jati's
concentrated ownership by its promoter and three-member board of
commissioners, of which one member is independent.
These governance concerns are partially balanced by the company's
(1) diversified operations that provide for a well-balanced income
stream; and (2) track record of maintaining strong credit metrics,
modest dividend payout and very good liquidity since 2012.
The stable ratings outlook reflects Moody's expectation that
Pakuwon Jati's credit metrics will continue to be supported by the
recurring income from its investment properties, as well as its
ongoing financial discipline, while continuing to pursue growth.
A ratings upgrade is unlikely, given Pakuwon Jati's small revenue
base and geographic concentration.
Nevertheless, Moody's would consider upgrading the rating if the
company grows its revenue while maintaining a strong financial
profile, with adjusted debt/homebuilding EBITDA below 1.5x and
recurring EBITDA/interest expense above 4.0x, in conjunction with
solid liquidity in the form of cash balances and committed
facilities.
Pakuwon Jati's ratings could face downward pressure if (1) the
company fails to implement its business plans; (2) the company
embarks on an aggressive development growth strategy; and/or (3)
the property market deteriorates, leading to protracted weakness in
its operations and credit quality.
Moody's would consider downgrading the company if adjusted
debt/homebuilding EBITDA rises above 2.5x and recurring
EBITDA/interest expense falls below 2.0x on a sustained basis.
The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in January 2018.
Pakuwon Jati, Tbk. (P.T.), listed on the Indonesia Stock Exchange
and controlled by the Tedja family, is engaged in the development,
management and operation of retail malls, office buildings, hotels,
condominium towers and residential townships in Surabaya and
Jakarta.
=====================
N E W Z E A L A N D
=====================
CULLEN GROUP: Nine Related Companies Move Into Liquidation
----------------------------------------------------------
Victoria Young at BusinessDesk reports that nine other Eric
Watson-linked companies have been moved into liquidation following
the collapse of Cullen Group.
According to BusinessDesk, Cullen Group was moved into liquidation
by court order last week after a High Court judge refused to halt
insolvency proceedings against it.
KPMG's Vivian Fatupaito was appointed liquidator by associate judge
Hannah Sargisson on December 17, BusinessDesk discloses. Since then
nine other entities linked to Watson have also gone under.
BusinessDesk, citing Companies Office records, discloses that
Cullen Investments was moved into liquidation by its parent.
Bush Inn Properties, which is owned by Cullen Group, is now under
the control of KPMG liquidator as are eight other entities.
The others: Batty Road Holdings, Cullen Inc Holdings, Cullen
Portfolio, EW Leasing, EGB Holdings, Serious Holdings and Watson
Bloodstock are all solely owned by Cullen Investments and are all
now in liquidation, BusinessDesk discloses.
Because those liquidations were shareholder-appointed, KPMG must
provide a report before Christmas, BusinessDesk says.
BusinessDesk relates that the insolvency proceedings were brought
by the Inland Revenue Department which was seeking costs after
having obtained a NZ$112 million tax judgment against Cullen
Group.
Justice Matthew Palmer, who had also presided over the tax
decision, said the insolvency proceedings shouldn't be stopped,
BusinessDesk relays. In his decision, he said a costs award of some
NZ$500,000 shouldn't be enough to tip a company the size of Cullen
Group into insolvency unless those controlling it wished it to
happen.
In his earlier judgment, he had noted that Cullen Investments'
financial statements for the year ending March 31, 2017, showed it
then had assets of almost NZ$148 million and total liabilities of
just over NZ$73 million.
Separately, BusinessDesk reports that Mr. Watson and two entities
linked to him have been told to pay more than GBP43 million to
fellow kiwi businessman Owen Glenn. Mr. Glenn had obtained
judgment against Mr. Watson, Novatrust and Spartan Capital for
fraudulent misrepresentation in their joint ventures. In October, a
UK appeal court dismissed Mr. Watson's plea to alter the amount of
interest on the sum.
=====================
P H I L I P P I N E S
=====================
PENAFRANCIA RURAL: Ex-Pres, 5 Officers Charged for Qualified Theft
------------------------------------------------------------------
The Department of Justice (DOJ) filed three criminal informations:
two qualified theft, and one case for violation of the PDIC Charter
for conducting business in an unsafe and unsound manner, against
the former President and Manager, Officer-in-Charge and Cashier,
and Internal Auditor, as well as the former loan officer, teller,
and bookkeeper of the closed Penafrancia Rural Bank of Calabanga
(Camarines Sur), Inc. (PRBCI).
All of the cases are based on the complaint filed by the Philippine
Deposit Insurance Corporation (PDIC) with the DOJ, and are now
pending with the Regional Trial Court, Branch 63, Calabanga,
Camarines Sur.
The criminal informations stated that the accused betrayed the
confidence bestowed upon them as officers and employees of the Bank
when they willfully took PHP557,044.05 which was received by PRBCI
as deposits. Likewise, the accused were all charged with conducting
business in an unsafe or unsound manner when the deposits were
received by the accused from the depositors but intentionally did
not record them in the books of the Bank, which actions
contradicted the generally accepted standards of prudent operation,
to the damage and prejudice of the Bank, the PDIC and the general
public.
The DOJ earlier issued a Resolution on the cases finding that the
respondents manipulated bank records when they made it appear that
the deposits received by the Bank aggregating PHP557,044.05 were
"cancelled" and that the certificates of time deposits that were
issued therefore were declared "missing."
Qualified theft is a crime defined under Article 310 of the Revised
Penal Code, while conducting business in an unsafe or unsound
manner is a violation of Republic Act No. 3591, as amended, or the
PDIC Charter.
PRBCI was ordered closed by the Monetary Board (MB) of the Bangko
Sentral ng Pilipinas on December 10, 2015. The MB also designated
PDIC as statutory receiver of PRBCI.
The filing of cases against erring individuals is in support of
PDIC's efforts to bring to justice parties that engage in acts of
anomalies, irregularities and fraud that pose risk to depositors
and the Deposit Insurance Fund, PDIC's main fund source for payout
of deposit insurance claims. PDIC continues to pursue legal actions
against bank officials and personnel who engage in unsafe and
unsound banking practices that pose grave threats to the stability
of the country's banking system. PDIC is mandated to generate,
preserve, maintain faith and confidence in the country's banking
system, and protect it from illegal schemes and machinations.
=================
S I N G A P O R E
=================
HYFLUX LTD: New Investor to Engage with PnP Holders Soon
--------------------------------------------------------
Fiona Lam at The Business Times reports that Aqua Munda has poured
cold water on the hopes of Hyflux's perpetual securities and
preference shares (PnP) holders -- for now.
BT relates that the potential investor on Dec. 23 said it had
received queries from some PnP holders about whether it will table
any proposal for their consideration.
However, it is still focusing on launching its invitation for
Hyflux's noteholders and unsecured creditors to tender their debts
for it to purchase, Aqua Munda said in a press statement, the
report relays.
"We intend to engage with PnP holders through the Securities
Investors Association (Singapore) and its advisers as soon as
practicable after the close of the invitation," the
Singapore-registered company added.
If successful, its proposed purchase of some S$1.8 billion in notes
and unsecured debt is meant to facilitate on an expedited basis a
restructuring that is fair and equitable for all stakeholders, the
company, as cited by BT, said on Dec. 23.
"We would like to assure PnP holders and shareholders as well as
other stakeholders (including the eligible creditors) that we are
aware of the tight timelines and the pressure on Hyflux to
undertake and complete its debt restructuring exercise."
On Dec. 23, Hyflux said in a bourse filing that it will make the
appropriate announcements as and when there are any further
material developments on the matter.
Aqua Munda added an unexpected fresh gurgle to the Hyflux saga last
week, when it floated a proposal to buy out the beleaguered water
treatment firm's 4.25 per cent notes due in 2018, the 4.6 per cent
notes and 4.2 per cent notes due in 2019, as well as other senior
unsecured, trade and contingent debt of Hyflux and three of its
subsidiaries, according to BT.
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.
PUMA ENERGY: Moody's Lowers CFR to Ba3, Outlook Negative
--------------------------------------------------------
Moody's Investors Service downgraded Puma Energy Holdings Pte.
Ltd's corporate family rating to Ba3 from Ba2 and its probability
of default rating to Ba3-PD from Ba2-PD. Moody's also downgraded
the ratings assigned to Puma International Financing S.A.'s senior
unsecured notes guaranteed by Puma Energy to Ba3 from Ba2. The
outlook on all ratings remains negative.
RATINGS RATIONALE
The rating downgrade reflects the significant increase in Puma
Energy's financial leverage following a protracted period of weaker
operating performance as the group has been facing challenging
trading conditions in some of its key markets amid the widespread
depreciation of emerging market currencies against the US dollar.
In the past eighteen months, Puma Energy's operating profitability
has come under pressure as a result of adverse market conditions
prevailing in some of its key countries. In Angola (B3 stable), the
group's unit gross margin markedly declined following the freeze on
refined oil product prices imposed by the government in March 2018
in the context of its macroeconomic stabilisation programme, which
was compounded by the decision to exit the exchange rate peg to the
US dollar leading to a sharp depreciation in the Angolan kwanza.
Also, the group had to contend with intensifying competitive
pressures in the Australian retail sector, as well as declining
sales volumes in Puerto Rico. Overall, Moody's expects that Puma
Energy will report a Moody's-adjusted EBITDA of around $690 million
in 2019, down 27% compared to 2017.
In the past two years, a two-third cut in capex and a reduction in
working capital driven by improved structural payment terms with
major suppliers have helped Puma Energy generate positive free cash
flow in excess of $300 million. This together with the proceeds
raised from various non-core assets helped keep Moody's-adjusted
debt largely flat despite a $500 million increase related to the
implementation of IFRS 16. However, lower EBITDA will inevitably
result in a significant increase in leverage in 2019, with adjusted
total debt to EBITDA forecast to rise to 6.3x at year-end against
4.6x in 2017.
In this context, Moody's notes the various divestments recently
announced by Puma Energy as it strives to optimise its global
portfolio and deleverage its balance sheet. In October 2019, the
group announced the sale of its business operations in Paraguay to
Impala Terminals Group for a net purchase price of $180 million.
The transaction is likely to close in January 2020. This was
followed on December 18, 2019 by the sale of the Australian
commercial and retail fuels business to Chevron Australia
Downstream Pty Ltd, a subsidiary of Chevron Corporation (Aa2
stable), for AUD425 million ($293 million) excluding working
capital adjustments. The transaction is expected to complete by
mid-2020. Puma Energy intends to use the proceeds raised from both
sales to pay down debt.
In 2020, while Moody's does not factor any recovery in Angola's
contribution given the uncertainty over the phasing of any future
pump price adjustments, it expects that continuing volume growth
and operational efficiency improvements will more than offset the
loss of Paraguay and Australia contributions. A modest uplift in
Moody's-adjusted EBITDA combined with the full application of
divestment proceeds towards reducing debt should allow some
material deleveraging, with adjusted total debt to EBITDA falling
back below 5x at year-end 2020.
RATING OUTLOOK
The negative outlook largely reflects the persistent pressure
weighing on Puma Energy's operating profitability and the weak
positioning of its leverage metrics relative to the Ba3 rating at
year-end 2019, with Moody's-adjusted total debt to EBITDA likely to
be close to 6x.
The stabilisation of the outlook will be predicated on Puma
Energy's ability to achieve some, even modest, recovery in
operating results in 2020 while successfully completing the
recently announced divestments. This should allow some material
deleveraging with adjusted total debt to EBITDA falling back below
a level of 5x, which Moody's views as an appropriate downgrade
trigger for the Ba3 rating in the context of the group's downsized
business portfolio.
ESG CONSIDERATIONS
Refining and marketing is among the 11 sectors identified by
Moody's with elevated credit exposure to environmental risk. The
sector is exposed to a decrease in demand for oil products in the
long term and tightening regulations. However, Puma Energy's strong
focus on developing markets in Africa, Central and South America,
and Asia should leave it relatively sheltered from a potential
rapid uptake of electric vehicles.
Puma Energy's major shareholder is 49.4%-owned by global commodity
trader Trafigura, which supplies about two-thirds of the refined
oil products distributed and marketed by Puma Energy. The group
also uses Trafigura's trading platforms to hedge its fuel
inventories. In this context, Moody's notes that any material
weakening of Trafigura's credit profile may have a detrimental
effect on Puma Energy. Sonangol, the state oil company of Angola,
which is the group's other major shareholder, with a 28.06% stake,
supplies all of Puma Energy's oil products distributed in Angola.
Trafigura and Sonangol have historically provided financial support
for Puma Energy's growth via shareholder loans, committed borrowing
facilities, capital increases and conversion of loans to equity.
Out of Puma Energy's seven board members, three are appointed by
Trafigura, whereas Sonangol elects two.
LIQUIDITY
Moody's views Puma Energy's current liquidity position as adequate
despite its limited access to multiyear committed bank facilities.
As of the end of September 2019, Puma Energy held unrestricted cash
and cash equivalents of around $543 million and had total
availabilities under committed bank credit lines of $760 million,
of which $370 million under RCFs expiring within 12 months. In
addition, Puma continues to have access to a $500 million committed
shareholder loan from Trafigura, which remains undrawn and was
extended to September 2023. This compares with debt (including
lease) liabilities falling due within 12 months of $518 million as
of the end of September 2019. Also, Moody's expects tight working
capital management and moderation in capital spending to help Puma
Energy remain FCF positive in the next 12-18 months and within the
financial covenants governing its bank facilities.
STRUCTURAL CONSIDERATIONS
The Ba3 rating on the $600 million and $750 million senior
unsecured notes due 2024 and 2026, respectively, reflects the pari
passu ranking of the bondholders to other debt at various operating
subsidiaries of the group. The bulk of the group's trade payables
are contracted at the HoldCo level while the shift in the group's
funding strategy towards HoldCo debt in recent years, has led to
the reduction in OpCo debt versus HoldCo debt from 75% in December
2013 to less than 10% in September 2019. This change in the funding
strategy reduces the amount of priority debt at various operating
subsidiaries of the group, effectively ranking the bondholders pari
passu with debt at the OpCo level.
WHAT COULD CHANGE THE RATING UP/DOWN
The ratings may be downgraded should Puma Energy fail to (i)
achieve a material and sustainable recovery in operating
profitability; (ii) reduce financial leverage back to levels
commensurate with a downsized business portfolio after its planned
divestments and bring down Moody's-adjusted total debt to EBITDA
below 5x by the end of 2020; or (iii) maintain adequate liquidity,
including insufficiently pro-active management of its debt maturity
profile.
While highly unlikely at this juncture, a rating upgrade would
require (i) some material strengthening in the group's business
profile underpinning a sustained improvement in operating
profitability and (ii) some permanent deleveraging ensuring that
Moody's-adjusted total debt to EBITDA keeps below 4x.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Midstream
Energy published in December 2018.
CORPORATE PROFILE
Puma Energy Holdings Pte. Ltd is an integrated midstream and
downstream oil products group active in Africa, Latin America,
North East Europe, the Middle East and Asia-Pacific. Trafigura
Beheer BV, a global commodity and logistics firm, established Puma
Energy in 1997 as a storage and distribution network in Central
America, and the company has since grown into a global network
operating across 46 countries worldwide, with approximately 7.6
million cubic metres of storage capacity and a network of
approximately 3,000 retail service stations across Africa, Latin
America, Asia and Australia. In the twelve months to the end of
September 2019, Puma Energy sold 25 million cubic metres of oil
products and its facilities handled around 16 million cubic metres
of petroleum products.
Trafigura (not rated), a global commodities trader, continues to
own 49.4% of Puma Energy. Sonangol (not rated), the state-owned
national oil company of Angola, is Puma's other major shareholder
with a 28.06% stake. In addition, Cochan Holdings LLC owns 15.5%
with the remaining owned by private investors.
SUNVIC CHEMICAL: Unit Gets Demand Letter to Repay Loan
------------------------------------------------------
Fiona Lam at The Business Times reports that Sunvic Chemical
Holdings' wholly-owned subsidiary, Jiangsu Jurong Chemical, has
received another letter of demand.
This time, it is for the immediate repayment of a CNY35 million
(SGD6.8 million) loan, which bears an annual interest of 13.5 per
cent, mainboard-listed Sunvic said in a bourse filing on Dec. 20,
BT relates.
According to the report, the lender, Xiangshui City Asset
Investment Holding Group (XCAIH), sent the letter of demand dated
Dec 13 to Jiangsu Jurong after the loan came due on Dec. 12.
BT relates that Sunvic said there will be a material and adverse
impact on the group's financial position, business and operations,
in the event that XCAIH commences legal proceedings against Jiangsu
Jurong and if Sunvic is unable to repay the loan.
The loan is secured by land use rights held and buildings owned by
Jiangsu Jurong, as well as a corporate guarantee by Yixing Danson
Technology and personal guarantees by Yang Guoqiang and Hu Yanping,
adds BT.
Based in Singapore, SunVic Chemical Holdings Limited (SGX:A7S), an
investment holding company, manufactures and sells intermediate
chemical products.
SWIBER HOLDINGS: Judicial Mgmt. Period Extended Thru Jan. 31
------------------------------------------------------------
Rachel Mui at The Business Times reports that the Singapore High
Court has granted Swiber Holdings and its subsidiary Swiber
Offshore Construction a one-month extension till Jan. 31, 2020, for
their judicial management periods, during an interim hearing.
The original deadline for the troubled offshore and marine group
was set for Dec. 31, 2019.
BT relates that the judicial managers had requested an extension
till June 30, 2020. The purpose of the interim hearing on Dec. 19
was to seek a temporary extension, pending the outcome of a
substantive hearing when the court will determine the judicial
managers' application for the later deadline.
According to BT, Swiber said on Dec. 20 that the substantive
hearing will take place in January next year, on a date to be
fixed.
Judicial management is a type of debt restructuring procedure where
an independent judicial manager is appointed to control the
affairs, business and property of a company under financial
distress, the report notes.
In July this year, Swiber applied for more time - until Dec 31 - to
submit to the Singapore Exchange a proposal on resuming trading in
its shares, which has been suspended since 2016.
About Swiber Holdings
Swiber Holdings Limited (SGX:BGK) -- http://www.swiber.com/-- is a
Singapore-based investment holding company. The Company, through
its subsidiaries, is engaged in offshore marine engineering; vessel
owning and chartering, and provision of corporate services. The
Company is an integrated offshore construction and support services
provider for shallow water oil and gas field development. It offers
a range of engineering, procurement, installation and construction
(EPIC) services, complemented by its in-house marine support and
engineering capabilities, to support the offshore field development
and production activities of its clientele base across the Asia
Pacific, Middle East, Latin America and West Africa regions. It
operates approximately 10 construction vessels. The Company's
subsidiaries include Swiber Offshore Construction Pte. Ltd., Swiber
Offshore Marine Pte. Ltd., Swiber Corporate Pte. Ltd., Resolute
Offshore Pte. Ltd. and Swiber Capital Pte. Ltd.
As reported in the Troubled Company Reporter-Asia Pacific on Aug.
2, 2016, Reuters said Swiber Holdings Ltd has applied to place
itself under judicial management instead of liquidation. According
to Reuters, Swiber shocked markets in July 2016 by filing for
liquidation, as it faced hundreds of millions of dollars in debt
and a decline in orders, becoming the largest local company to fall
victim to the slump in oil prices.
Bob Yap Cheng Ghee, Tay Puay Cheng and Ong Pang Thye of KPMG
Services Pte Ltd. have been appointed as the joint and several
interim judicial managers of Swiber Holdings Limited and Swiber
Offshore Construction.
Swiber had $1.43 billion of liabilities and $1.99 billion of assets
on March 31, 2016, before it sought court protection in late July,
Bloomberg News reported citing the company's last published
accounts.
*********
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,
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
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Editors.
Copyright 2019. All rights reserved. ISSN: 1520-9482.
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