/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/200106.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, January 6, 2020, Vol. 23, No. 4 Headlines A U S T R A L I A DRILLING SERVICES: First Creditors' Meeting Set for Jan. 10 C H I N A ANBANG INSURANCE: Regulator Names New Chair of Chengdu Rural PANDA GREEN: Extends Deadline for Accepting Debt Revamp Proposal ROAN HOLDINGS: Expands Business in China RUGAO ECONOMIC: Fitch Assigns 'BB' LongTerm IDRs, Outlook Stable I N D I A AIMIL PHARMACEUTICALS: CRISIL Cuts Rating on INR33.50cr Loan to D ALTRAREX TRADERS: Insolvency Resolution Process Case Summary BHAGWATI WOVEN: CRISIL Gives B+ Ratings to INR7.57cr Loans BISWAMATA HEEMGHAR: CRISIL Cuts Rating on INR11.44cr Loan to D DEEPAK BUILDERS: CRISIL Moves B+ on INR50cr Debts to NonCooperating DHARITRI INFRAVENTURE: Insolvency Resolution Process Case Summary DURGASHAKTI FOODS: Insolvency Resolution Process Case Summary IDT CLOTHING: CRISIL Lowers Rating on INR9cr Loan to D INTERFAB APPARELS: CRISIL Withdraws D Rating on INR4.95cr Loan JAIBHAGWATI TEXPRINT: Insolvency Resolution Process Case Summary JSW ENERGY: Inks Deal to Restructure INR752crore Debt on JPVL K. LEKSHMANAN: CRISIL Moves D on INR7+cr Loans to Not Cooperating KAILASH DEVBUILD: Ind-Ra Migrates BB LT Rating to Non-Cooperating KRUSHNA COTEX: Insolvency Resolution Process Case Summary LAKSHMIGRAHA WORLDWIDE: CRISIL Rates INR3.5cr Loans 'B' MAKRO CAST: Insolvency Resolution Process Case Summary MANIK COMMERCIAL: CRISIL Lowers Rating on INR4.9cr LT Loan to D MARK INT'L: CRISIL Cuts Rating on INR12cr Loan to B+ MBL INFRA: SC Stays Order Allowing Promoter to Take Over Company OM ENERGY: CRISIL Migrates B+ on INR40cr Loans to Not Cooperating P. C. INDUSTRIES: CRISIL Moves B on INR7.5cr Debt to NonCooperating PARAMESWARA COTTON: CRISIL Moves B+ Ratings to Not Cooperating PARAMOUNT FORGE: CRISIL Keeps B+ Rating in Not Cooperating PLANET PR: CRISIL Lowers Rating on INR8cr Cash Loan to 'D' PRADEEP TRANSCORE: CRISIL Moves B+ Debt Ratings to Not Cooperating R & M RASAYANA: Insolvency Resolution Process Case Summary RAFFLES GREEN: CRISIL Keeps B- on INR9cr Loans in Not Cooperating RAM LAL ANEJA: CRISIL Lowers Ratings on INR30cr Loans to 'D' RAMKRIPA AGRO: CRISIL Lowers Rating on INR4.95cr Loan to 'D' S.T. DYEING: CRISIL Moves B+ on INR9cr Loans to Not Cooperating S.V.C. PROJECTS: CRISIL Lowers Rating on INR54cr Loan to 'D' SHRIPROP DWELLERS: CRISIL Moves D on INR50cr Debt to NonCooperating SMT MACHINES: CRISIL Moves D on INR13.9cr Loans to Not Cooperating SPENTA BUILDERS: Insolvency Resolution Process Case Summary TRIMURTI CONCAST: Insolvency Resolution Process Case Summary TULSI ROCKS: CRISIL Moves D on INR20cr Loans to Not Cooperating UMARAI WORLDWIDE: Insolvency Resolution Process Case Summary VIJAY BREEDING: CRISIL Moves B+ on INR6.4cr Loans in Not Cooperatin S I N G A P O R E HYFLUX LTD: Singapore Bourse Seeks Tighter Norms on Retail Bonds LIBRA GROUP: Inks Deal With Buyer for 100% Stake in Unit LIBRA GROUP: Unit Served Writ of Summons by WMS Industrial Serves T H A I L A N D KTB SECURITIES: Fitch Rates THB400MM Sub. Unsec. Debt 'B(tha)' [*] THAILAND: BAAC Rejigs to Focus on Communities to Fight Poverty X X X X X X X X [*] Increase in Defaults Expected Across Asia Before 2020 Ends - - - - - ================= A U S T R A L I A ================= DRILLING SERVICES: First Creditors' Meeting Set for Jan. 10 ----------------------------------------------------------- A first meeting of the creditors in the proceedings of Drilling Services Australia Pty Ltd, formerly trading as Zarafa Group, will be held on Jan. 10, 2020, at 10:00 a.m. at the offices of Vincents, Level 34, at 32 Turbot Street, in Brisbane, Queensland. Nick Combis of Vincents was appointed as administrator of Drilling Services on Jan. 2, 2019. ========= C H I N A ========= ANBANG INSURANCE: Regulator Names New Chair of Chengdu Rural ------------------------------------------------------------ Wu Hongyuran and Denise Jia at Caixin Global report that Chengdu Rural Commercial Bank Co. Ltd. is replacing its chairman as controlling shareholder Anbang Insurance Group Co. Ltd. puts its stake in the regional bank up for sale. The bank played a key role in financing an overseas acquisition spree before Anbang's collapse and takeover by the government. Chen Ping resigned as chairman of the bank as his employment contract expired, Caixin learned from exclusive sources. The China Banking and Insurance Regulatory Commission (CBIRC) working group in charge of the takeover of Anbang named Xie Shaobo as interim chairman, Caixin says. Xie, currently an executive at Ping An Bank, was appointed by the CBIRC last year to monitor Chengdu bank's risk. Since the government took over Anbang last year amid a fraud investigation into founder and former Chairman Wu Xiaohui, the regulator has been trying to sell off the fallen financial giant's assets, including the stake in the Chengdu bank, Caixin notes. About Anbang Insurance Anbang Insurance Group Co., Ltd., through its subsidiaries Anbang Property Insurance Inc., Anbang Life Insurance Inc., Hexie Health Insurance Co., Ltd, and Anbang Asset Management Co., Ltd., offers property insurance, life insurance, health insurance, asset management, insurance sales agency, and insurance brokerage services. The company provides car insurance, accident insurance, cargo transportation insurance, credit insurance, life-long insurance, and medical insurance services. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 26, 2018, The Strait Times related the Chinese government had seized control of Anbang Insurance, the troubled Chinese company that owns the Waldorf Astoria hotel in New York and other marquee properties around the world, and charged its former chairman with economic crimes. The Strait Times noted that the move is Beijing's biggest effort yet to rein in a new kind of Chinese company, in this case, one that spent billions of dollars around the world over the past three years buying up hotels and other high-profile properties. The rise of these companies illustrates China's growing economic might, but Chinese officials have grown increasingly concerned that they were piling up debt to make frivolous purchases. In a statement posted on its website on Feb. 23, the China Insurance Regulatory Commission said the government was taking over to ensure the "normal and stable operation" of the company. "Illegal operations at Anbang may have seriously endangered the company's solvency, prompting the government to take control," the statement read. The Strait Times noted the move also caps the downfall of Anbang leader Wu Xiaohui. Mr. Wu had married a granddaughter of Mr. Deng Xiaoping, China's paramount leader in the 1980s and a towering figure in Chinese politics, and was widely considered politically connected. Mr. Wu Xiaohui was later sentenced to 18 years in prison for fraud and embezzlement, according to Reuters. PANDA GREEN: Extends Deadline for Accepting Debt Revamp Proposal ---------------------------------------------------------------- Max Hall at pv-magazine reports that Panda Green's race to meet a January 25 deadline to honor US$350 million of senior notes appears set to go down to the wire after the deadline for accepting a delayed payment was extended. pv-magazine says the heavily-indebted, Hong Kong-listed solar project developer has proposed postponing settlement of the 8.25% interest-bearing notes for two years, with 8% interest paid over the extension period. However, having announced holders of the notes would have until Dec. 27, 2019, to accept the offer, Panda Green on Jan. 2 announced the deadline has been extended until Jan. 14. On Dec. 30, 2019, the publicly-owned business announced shareholders had approved the company's latest bail-out from Beijing, reports pv-magazine. State-owned Beijing Energy Investment Holding Co Ltd will acquire a 30.39% stake in the company with a shares subscription worth HK$1.79 billion (US$230 million). pv-magazine notes that the change in ownership makes Beijing Energy Investment the major shareholder in Panda Green, which is now 72.44% owned by Chinese state entities, including a company which specializes in distressed debt. About Panda Green Panda Green Energy Group Limited operates solar power plant construction businesses. The Company provides solar energy projects development, solar energy projects investment, solar power plant management, and other services. Panda Green Energy Group also operates wind power station development, hydroelectric power generation, and other businesses. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 20, 2019, S&P Global Ratings lowered the long-term issuer credit rating on Panda Green Energy Group Ltd. (PGE) to 'CC' from 'CCC+'. S&P also lowered the issue rating on the notes to 'CC' from 'CCC'. The ratings remain on CreditWatch with developing implications. S&P would view PGE's proposed exchange offer, if finalized, as a distressed exchange because consenting lenders will not receive compensation commensurate with the existing transaction. ROAN HOLDINGS: Expands Business in China ---------------------------------------- In connection with the transition of its main business from lending to asset management, supplier chain financing and business factoring, Roan Holdings Group Co., Ltd. has expanded its business geography to Yangzi River Economic Zone in China. Accordingly, on Dec. 31, 2019, the Board of Directors of the Company approved to change its address of principal executive office and mailing address to 147 Ganshui Lane, Yuhuangshannan Fund Town, Shangcheng District, Hangzhou, Zhejiang, China. The Board of Directors also approved to change its phone number to +86 571 8662 1775. Both changes were effective Dec. 31, 2019. About Roan Holdings Roan Holdings Group Co., Ltd. f/k/a China Lending Corporation is engaged in asset management, supplier chain financing, and business factoring. China Lending reported a net loss US$94.13 million for the year ended Dec. 31, 2018, compared to a net loss of US$54.78 million for the year ended Dec. 31, 2017. As of June 30, 2019, the Company had US$55.40 million in total assets, US$108.26 million in total liabilities, $9.99 million in convertible redeemable Class A preferred shares, and a total deficit of $62.85 million. Friedman LLP, in New York, the Company's auditor since 2017, issued a "going concern" qualification in its report dated April 26, 2019, on the Company's consolidated financial statements for the year ended Dec. 31, 2018, citing that the Company has incurred significant losses and is uncertain about the collection of its loans receivables and extension of defaulted loans. These conditions raise substantial doubt about the Company's ability to continue as a going concern. RUGAO ECONOMIC: Fitch Assigns 'BB' LongTerm IDRs, Outlook Stable ---------------------------------------------------------------- Fitch Ratings assigned China-based Rugao Economic and Trade Development Company Long-Term Foreign- and Local-Currency Issuer Default Ratings of 'BB'. The Outlook is Stable. RETDC is the primary investment, financing and construction platform for the urban-development business of the Rugao Economic and Technological Development Zone in Jiangsu province. RETDC is mainly engaged in primary-land development and construction of infrastructure, schools, resettlement housing and factory facilities. KEY RATING DRIVERS 'Very Strong' Status, Ownership, and Control: RETDC is wholly owned, controlled and supervised by the Rugao ETDZ Administrative Committee. The company's senior management is appointed by and reports to the committee whose approval is required for major investments and financing activities. 'Strong' Support Track Record and Expectations: RETDC receives regular contracted payments from the government for its primary-land development and construction of infrastructure, schools, resettlement housing, factory facilities and other projects. A cost-plus business model with a margin of about 15% ensures sufficient profitability for RETDC. The government also provided transfers and grants that accounted for 15%-17% of the company's total revenue for the past four years. Equity injections have been less regular, totalling CNY25.65 billion over the past four years. 'Moderate' Socio-Political Implications of Default: RETDC relies on access to debt funding to continue its projects, especially those that can cause social problems if delayed, including resettlement housing. However, it has a diverse project portfolio and if a default occurs, the municipality may use administrative and fiscal measures to ensure operations are not disrupted on a long-term basis, including using other government-related entities in the region as substitutes. 'Very Strong' Financial Implications of Default: RETDC raises debt to finance policy-driven construction and relies on regular contracted revenue and equity injections from the public sector to service its debt. RETDC is the largest urban-development vehicle in Rugao ETDZ and its total debt accounts for a significant proportion of the overall risk in the development zone. It also has diversified funding channels, including regular access to the domestic bond market. A default by RETDC would have a considerable impact on local financing costs. 'b-' Standalone Credit Profile: Fitch has assessed RETDC's revenue defensibility as 'Weaker' based on its business concentration and low bargaining power over pricing. Fitch has assessed the operating risk at 'Midrange' after factoring in its relatively predictable cost structure. Fitch believes its financial profile is 'Weaker' due to high leverage from a long payback period and low profitability for its urban-development projects. Fitch expects net leverage to remain high at over 50x for the next five years. DERIVATION SUMMARY Fitch has assessed RETDC under its Government-Related Entities Rating Criteria, reflecting Rugao ETDZ's ultimate ownership and oversight over the company, a record of financial support and the company's functional role in Rugao ETDZ's development, a key strategic initiative of the government. These factors indicate a strong incentive by the sponsor to provide extraordinary support to RETDC, if needed. RETDC's IDRs were derived from the four factors under Fitch's Government-Related Entities Rating Criteria and the Standalone Credit Profile of 'b-' from its Public Sector, Revenue-Supported Entities Rating Criteria. RATING SENSITIVITIES The ratings on RETDC would be affected by a change in Fitch's perception of Rugao ETDZ's ability to provide subsidies, grants or other legitimate resources allowed under the country's policies and regulations. An increase in the incentive for Rugao ETDZ to provide support to RETDC, including stronger socio-political implications of a default by RETDC and a stronger track record of support, may trigger positive rating action on RETDC. In contrast, the rating may be downgraded if there is a significant weakening in the socio-political and financial implications of a default by RETDC, a weaker track record of support by the province, or a dilution in the government's shareholding. An improvement or deterioration of the Standalone Credit Profile or the liquidity position of RETDC would also affect the ratings. 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. ========= I N D I A ========= AIMIL PHARMACEUTICALS: CRISIL Cuts Rating on INR33.50cr Loan to D ----------------------------------------------------------------- CRISIL has downgraded its long-term rating on the bank facilities of Aimil Pharmaceuticals India Limited (APIL) to 'CRISIL D' from 'CRISIL BB/Negative'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 33.50 CRISIL D (Downgraded from 'CRISIL BB/Negative') Long Term Loan 7.52 CRISIL D (Downgraded from 'CRISIL BB/Negative') Proposed Fund- 33.98 CRISIL D (Downgraded from Based Bank Limits 'CRISIL BB/Negative') The downgrade reflects delays in servicing of interest on term loan in the past three months. The rating also reflects APIL's modest profitability, below-average financial risk profile, and moderately large working capital requirement. These weaknesses are partially offset by the extensive experience of the promoters in the xx industry. Key Rating Drivers & Detailed Description There have been delays in servicing of interest on term loan in the past three months. Weaknesses * Modest operating profitability: Operating margin was 4-5% over the three years through fiscal 2018 due to significant investments in expanding sales and distribution network and advertisements. * Below-average financial risk profile: Financial risk profile should remain below average due to high dependency on working capital debt. * Moderately large working capital requirement: Operations are working capital-intensive, as reflected in gross current assets. Commensurate with increase in scale of operations, working capital requirement may rise over medium term. Strength * Extensive experience of the promoters: Benefits from the four-decade-long experience of the promoters, APIL's diverse product portfolio, and healthy relationships with various customers and suppliers should continue to support the business. Liquidity Poor Weak liquidity reflected in delays in interest payment obligations towards term 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 enhancement in liquidity. APIL was established in 1984 by Mr. K.K. Sharma. The company is engaged in manufacturing and sale of Ayurvedic & Unani medicines, which it sells under its own brands such as Neeri, Lukoskin, Amree Plus, Purodil and Amroid. It has manufacturing facilities in Nalagarh (Himachal Pradesh) and New Delhi. ALTRAREX TRADERS: Insolvency Resolution Process Case Summary ------------------------------------------------------------ Debtor: Altrarex Traders Private Limited S-106, Fantasia MUL Complex Plot No. 47, Sec-30A Navi Mumbai, Thane MH 400703 IN Insolvency Commencement Date: November 28, 2019 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: May 26, 2020 Insolvency professional: Hemant Sharma Interim Resolution Professional: Hemant Sharma D-54, 1st Floor Defence Colony New Delhi 110024 E-mail: hemant78sharma@yahoo.com cirp.altrarex@gmail.com Last date for submission of claims: January 1, 2020 BHAGWATI WOVEN: CRISIL Gives B+ Ratings to INR7.57cr Loans ---------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of Bhagwati Woven Private Limited (BVPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.50 CRISIL B+/Stable (Assigned) Term Loan 3.07 CRISIL B+/Stable (Assigned) The rating reflects BVPL's modest scale of business, working capital intensive operations, below-average financial profile and susceptibility to volatility in raw material prices. These weaknesses are partially offset by the extensive industry experience of the promoters. Key Rating Drivers & Detailed Description Weaknesses: * Modest scale of operations: Intense competition in the packaging industry keeps scale of operations modest as reflected in revenue of INR17 crore in fiscal 2019. * Working capital intensive operations: Gross current assets were 189 days as on March 31, 2019 driven by high debtor days of 106. * Below-average financial risk profile: Networth was modest at INR3.7 crore and total outside liabilities to tangible networth ratio high at 3.98 times as on March 31, 2019. The interest coverage and net cash accrual to total debt ratios were weak at 2.04 times and 0.08 time, respectively, for fiscal 2019. * Susceptibility to volatility in raw material prices: Raw material cost accounts for more than 75% of the cost of sales, and any adverse movement in input prices could constrain the operating margin. Strength: * Extensive experience of the promoters: The promoters' experience of over a decade, their understanding of the dynamics of the market, and healthy relationships with suppliers and customers should continue to support the business. Further, need-based funding support from the promoters is likely to continue. Liquidity Poor Liquidity is poor as marked by bank limit utilisation of 100% for the 12 months through October 2019 with instances of over drawls. While cash accruals shall be sufficient to cover debt obligations, liquidity may remain constrained by large working capital requirements. Outlook: Stable CRISIL believes BVPL will continue to benefit from the extensive experience of its promoters, and healthy relationships with clients. Rating sensitivity factors: Upward factors: * Enhancement in working capital cycle with gross current assets (GCAs) improving to around 5 months with stable scale of operations and promoter funding. * Improvement in margins and scale, leading to higher cash accruals and steady capital structure. Downward factors: * Stretch in working capital cycle leading to GCA days of over 250 * Reduction in unsecured loans from promoters, straining liquidity. Incorporated in 2010, BVPL is owned and managed by Mr Ghyanshyamdas Mundhra, Mr Ashok Mundhra, Mr Chandrakant Mundhra and others. BVPL manufactures high density polyethylene and polypropylene woven fabrics (laminated and non- laminated) and tarpaulin of 68 to 700 gram per square metre. Its manufacturing facility is in Kheda (Gujarat). BISWAMATA HEEMGHAR: CRISIL Cuts Rating on INR11.44cr Loan to D -------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Biswamata Heemghar Private Limited (BHPL) to 'CRISIL D' from 'CRISIL BB-/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 11.44 CRISIL D (Downgraded from 'CRISIL BB-/Stable') Proposed Long Term .76 CRISIL D (Downgraded from Bank Loan Facility 'CRISIL BB-/Stable') Term Loan 1.14 CRISIL D (Downgraded from 'CRISIL BB-/Stable') Working Capital 1.66 CRISIL D (Downgraded from Facility 'CRISIL BB-/Stable') The downgrade reflects delays in servicing debt obligation because of a weak liquidity. BHPL is also exposed to intense competition in the cold storage industry and has a weak financial risk profile. However, the company benefits from its promoter's extensive experience. Key Rating Drivers & Detailed Description Weakness: * Weak Liquidity: On account of stretched liquidity, the company has delayed in repayment of debt obligation. * Exposure to intense competition: The potato cold storage industry in West Bengal is regulated by the West Bengal Cold Storage Association, with rental rates fixed by the department of agricultural marketing, West Bengal. The fixed rental will continue to limit players' ability to earn profits based on their respective strengths and geographical advantages. Pressure to offer discounts to ensure healthy utilisation of storage capacity, especially given the high fragmentation, will also constrain profitability. * Weak financial risk profile: Networth remained small at INR4 crore as on March 31, 2019, despite marginal improvement in recent years on account of accretion to reserves. Gearing was high at 3.5 times because of loans extended to farmers, especially around fiscal-end. Debt protection metrics are likely to remain modest, with interest coverage and net cash accrual to total debt ratios of 1.12 times and 0.04 time, respectively, in fiscal 2019. Strengths: * Promoters' extensive experience: Presence of more than two decades in the cold storage segment has enabled the promoters to establish healthy relationships with farmers and traders and ensure healthy utilisation of storage capacity. Liquidity Poor Liquidity is inadequate to meet debt obligation. Rating sensitivity factors Upward factors * Track record of timely debt servicing for at least 90 days * Sustainable improvement in financial risk profile, especially liquidity. Incorporated in 2012 and promoted by Mr Shyamal Dandapat, BHPL provides cold storage facilities in Medinipur, West Bengal, to potato farmers and traders, and also trades in potatoes. DEEPAK BUILDERS: CRISIL Moves B+ on INR50cr Debts to NonCooperating ------------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Deepak Builders & Developers (DBD) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 30 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Proposed Overdraft 20 CRISIL B+/Stable (ISSUER NOT Facility COOPERATING; Rating Migrated) CRISIL has been consistently following up with DBD for obtaining information through letters and emails dated November 26, 2019 and December 2, 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 DBD, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on DBD is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of DBD to 'CRISIL B+/Stable Issuer not cooperating'. DBD, established in 1992 in Nashik, is promoted by Mr. Deepak Chande. The firm undertakes residential real development in Nashik. It currently has two project under execution. DHARITRI INFRAVENTURE: Insolvency Resolution Process Case Summary ----------------------------------------------------------------- Debtor: Dharitri Infraventure Private Limited Room No. 606-A, 6th Floor Merlin Infinite DN-51 Sector-V, Salt Lake City Kolkata Parganas North WB 700091 IN Insolvency Commencement Date: December 19, 2019 Court: National Company Law Tribunal, Kolkata Bench Estimated date of closure of insolvency resolution process: June 16, 2020 (180 days from commencement) Insolvency professional: Mr. Kamal Prakash Singh Interim Resolution Professional: Mr. Kamal Prakash Singh South City Garden 61 B.L. Saha Road Tower-2 Flat-11 I Kolkata 700053 E-mail: kamalprakashco@gmail.com Mobile: 9051911377 - and - 41, B.B. Ganguly Street 5th floor, Room No. 5E Kolkata 700012 E-mail: cirp.dharitriinfra@gmail.com Classes of creditors: Home Buyers Insolvency Professionals Representative of Creditors in a class: Mr. Surendra Kumar Agarwal Mobile: 70036-60854 E-mail: surendraca@gmail.com Mr. Chandra Kumar Jain Mobile: 97484-88836 E-mail: ckcacs@yahoo.co.in Mr. Pradeep Kumar Goenka Mobile: 9830119363 E-mail: goenka.pradeep@gmail.com Last date for submission of claims: January 2, 2020 DURGASHAKTI FOODS: Insolvency Resolution Process Case Summary ------------------------------------------------------------- Debtor: Durgashakti Foods Private Limited Jalalpura Khamgaon MH 444303 IN Insolvency Commencement Date: December 16, 2019 Court: National Company Law Tribunal, Indore Bench Estimated date of closure of insolvency resolution process: June 13, 2020 (180 days from commencement) Insolvency professional: Mr. Navin Khandelwal Interim Resolution Professional: Mr. Navin Khandelwal 206, Navneet Plaza 5/2 Old Palasia Indore 452001 E-mail: navink25@yahoo.com irp.shakti@gmail.com Last date for submission of claims: January 10, 2020 IDT CLOTHING: CRISIL Lowers Rating on INR9cr Loan to D ------------------------------------------------------ CRISIL has downgraded the rating on bank facilities of IDT Clothing Private Limited (IDT) to 'CRISIL D Issuer not cooperating' from CRISIL B+/Stable ISSUER NOT COOPERATING. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2.5 CRISIL D (Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') Export Packing 9.0 CRISIL D (Downgraded from Credit 'CRISIL B+/Stable ISSUER NOT COOPERATING') Proposed Long Term 1.5 CRISIL D (Downgraded from Bank Loan Facility 'CRISIL B+/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with IDT for obtaining information through letters and emails dated December 27, 2019, August 31, 2019 and November 22, 2018 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 IDT. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on IDT is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the information about irregularities in debt servicing available in public domain, the rating on bank facilities of IDT is downgraded to 'CRISIL D Issuer not cooperating' from CRISIL B+/Stable ISSUER NOT COOPERATING. Established as a partnership firm in 2002 by Mr. Suraj Gupta and his brother, Mr. Amar Gupta, IDT was reconstituted as a private limited company in 2006. The company manufactures and exports ready-made garments for men. INTERFAB APPARELS: CRISIL Withdraws D Rating on INR4.95cr Loan -------------------------------------------------------------- CRISIL has withdrawn its rating on the bank facilities of Interfab Apparels (Interfab) on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL's policy on withdrawal of its rating on bank loan facilities. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.95 CRISIL D (ISSUER NOT COOPERATING; Migrated from 'CRISIL D'; Rating Withdrawn) Proposed Cash 3.05 CRISIL D (ISSUER NOT Credit Limit COOPERATING; Migrated from 'CRISIL D'; Rating Withdrawn) CRISIL has been consistently following up with Interfab for obtaining information through letters and emails dated December 13, 2019 and December 18, 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 Interfab. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Interfab 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, CRISIL has migrated the ratings on the bank facilities of Interfab to 'CRISIL D Issuer not cooperating'. CRISIL has withdrawn its rating on the bank facilities of Interfab on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL's policy on withdrawal of its rating on bank loan facilities. Interfab, set up in 2010 at Tiruppur (Tamil Nadu), as a partnership between Mr K Karthikeyan and Ms K Sasikala. The firm manufactures readymade garments for men and women. The garments are sold to domestic customers. JAIBHAGWATI TEXPRINT: Insolvency Resolution Process Case Summary ---------------------------------------------------------------- Debtor: Jaibhagwati Texprint Private Limited 148/B, Vadod Ta-choryasinr GIDC Pandesara Surat GJ 000000 IN Insolvency Commencement Date: December 19, 2019 Court: National Company Law Tribunal, Surat Bench Estimated date of closure of insolvency resolution process: June 21, 2020 Insolvency professional: CA Kailash Thanmal Shah Interim Resolution Professional: CA Kailash Thanmal Shah 505, 21st Century Business Centre Near World Trade Centre Ring Road, Surat 395002 E-mail: ipktshah@gmail.com Mobile: 9824150365 Last date for submission of claims: January 7, 2020 JSW ENERGY: Inks Deal to Restructure INR752crore Debt on JPVL ------------------------------------------------------------- Press Trust of India reports that JSW Energy said on Jan. 2 it has entered into a pact with Jaiprakash Power Ventures Ltd (JPVL) to restructure outstanding debt of INR751.77 crore owed to the company. Under the pact, an amount of INR351.77 crore will be converted into equity shares of JPVL with a face value of INR10 each and INR280 crore will be written off, JSW Energy said in a BSE filing, PTI relays. "Out of the balance outstanding principal amount of INR400 crore, INR280 crore to be written off and INR120 crore to continue as debt to be paid by JPVL to the company, quarterly on priority basis, out of the available cash flows after JPVL has paid 10 per cent of the re-structured sustainable debt to its secured lenders," the filing, as cited by PTI, added. "Further, JPVL and the company have agreed to waive their respective rights to receive any payments from each other and unconditionally release each other from all liabilities in relation to the Securities Purchase Agreement dated November 16, 2014 for transfer of Karcham and Baspa hydro assets from JPVL to the Company," it added. This will result in reversal of an amount of INR177.48 crore of liabilities payable to JPVL in JEL's books, it said, adds PTI. About JSW Steel JSW Steel Limited is one of the largest producers of steel products in India, with an installed steelmaking capacity of 18 million tons per annum (mtpa). JSW's international operations comprise: (1) 1.2 million net tonnes plates and pipes mills in Texas; (2) a 1.5 mtpa hot rolling mill and a 3.0 mtpa electric arc furnace at Ohio; and (3) a 1.32 mtpa long steel production facility in Piombino, Italy. As reported in the Troubled Company Reporter-Asia Pacific on Oct. 2, 2019, Fitch Ratings has assigned a 'BB' final rating to India-based JSW Steel Limited's (JSWS, BB/Stable) USD400 million 5.375% senior unsecured notes maturing in April 2025. The proceeds will be used for capex or any other purpose in accordance with regulations. The final rating is in line with the expected rating assigned on September 23, 2019, and follows the receipt of final documents conforming to earlier information. JSWS's ratings continue to be underpinned by its competitive conversion costs and position as one of the largest steel producers in India, which is one of the fastest-growing steel markets globally. Its leverage in terms of total adjusted debt to EBITDAR stood at 3.1x in the financial year ended March 2019 (FY19), supported by high industry-wide margins. However, Fitch expects leverage to increase to 4x in FY20 due to a moderation in margins and an increase in capex. Fitch also expects a pick-up in domestic demand growth from 2HFY20 after relative weakness in 1QFY20. There is limited rating headroom and demand that is weaker than its expectations could result in further margin erosion and lower sales volumes. This could increase JSWS's leverage further and therefore have rating implications. K. LEKSHMANAN: CRISIL Moves D on INR7+cr Loans to Not Cooperating ----------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of K. Lekshmanan and Co. (KLC) to 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee .35 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) Cash Credit 4.60 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) Term Loan 1.55 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with KLC for obtaining information through letters and emails dated November 26, 2019 and December 2, 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 KLC, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on KLC is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of KLC to 'CRISIL D/CRISIL D Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. KLC was set up as a proprietorship firm in 1991, and reconstituted as a partnership firm in 2007. Mr L Sathek, Mr Sajil Sathek and Mrs Jaya Sathek are currently, the partners. The firm, which undertakes civil construction contracts for the Government of Kerala, started manufacturing RMC in fiscal 2015. KAILASH DEVBUILD: Ind-Ra Migrates BB LT Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Kailash Devbuild India Private Limited's (KDBIPL) Long-Term Issuer Rating to 'IND BB' from 'IND BBB-' and simultaneously migrated the rating to the non-cooperating category. The Outlook was Stable. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. 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 BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR160 mil. Fund-based limits downgraded and migrated to non- cooperating category with IND BB (ISSUER NOT COOPERATING) rating; and -- INR580 mil. Non-fund-based limits downgraded and migrated to non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information KEY RATING DRIVERS The downgrade reflects the breach of Ind-Ra's negative rating guideline for profitability and credit metrics. The company reported a decline in the absolute EBITDA to INR64.80 million in FY19 (FY18: INR81.93 million), resulting in deterioration of credit metrics as indicated by gross interest coverage ratio (operating EBITDA/gross interest expense) of 2.13x (2.36x) and net financial leverage ratio (total adjusted net debt/operating EBITDA) of 2.36x (2.06x). The decline in the absolute EBITDA level was due to a rise in raw material costs during the period. The EBITDA margins also fell to 10.4% in FY19 (FY18: 16.6%) and the return on capital employed was 14% (18%). The ratings also factor in the company's continued small scale of operations as indicated by revenue of INR623.75 million in FY19 (FY18: INR495.97 million). The cash flow from operations turned positive to INR14.36 million in FY19 (FY18: negative INR8.13 million) on account of positive changes in the working capital requirements. The cash and cash equivalents stood at INR0.46 million at FYE19 (FYE18: INR2.54 million). KDBIPL did not participate in the surveillance exercise and has not provided information about bank utilization, future plans and interim numbers for FY20. RATING SENSITIVITIES Positive: An increase in the revenue along with an improvement in overall credit metrics, all on a sustained basis, would lead to a positive rating action. Negative: A decline in the revenue and overall credit metrics, all on a sustained basis, would lead to a negative rating action. COMPANY PROFILE KDBIPL is engaged in providing turnkey solutions for extra-high-voltage transmission line towers and substation projects. KRUSHNA COTEX: Insolvency Resolution Process Case Summary --------------------------------------------------------- Debtor: Krushna Cotex Private Limited 4-A, Vikas Centre 104, S V Road Santacruz (West) Mumbai 400054 Insolvency Commencement Date: November 21, 2019 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: May 19, 2020 (180 days from commencement) Insolvency professional: Harish Kant Kaushik Interim Resolution Professional: Harish Kant Kaushik Flat No. 1904, Sapphire Regency Towers, Kavesar Ghodbundar Road Thane (W) 400615 E-mail: harishkant2007@gmail.com cirp.kepl@gmail.com Last date for submission of claims: Decemebr 21, 2019 LAKSHMIGRAHA WORLDWIDE: CRISIL Rates INR3.5cr Loans 'B' ------------------------------------------------------- CRISIL has assigned its rating 'CRISIL B/Stable' on the long term bank facilities of Lakshmigraha Worldwide Inc. (LW). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3.1 CRISIL B/Stable (Assigned) Long Term Loan 0.4 CRISIL B/Stable (Assigned) CRISIL rating on the bank facilities of LW reflects the modest scale of operations. However, the weakness is partially offset by the extensive experience of the partners. Key Rating Drivers & Detailed Description Weakness: * Modest scale of operations: The firm has reported a modest scale of operations as indicated by the topline of around INR18 crores in 2019. Going forward, the topline is expected to gradually improve in the medium term. Strength: * Extensive experience of the partners: The partners has an extensive experience of around three decades in the textile and automobile industry. LW will continue to derive benefit from the experience of the partners in the medium term. Liquidity Stretched The firm has highly utilized the bank limits at over 95% on account of working capital intensive operations. Further, the firm is expected to report gradual improvement in the net cash accruals against no repayment obligations. Also, the need based funding support from management supports the liquidity profile. Current ratio stood at around 1.08 times in 2019. Outlook: Stable CRISIL believes LW will continue to benefit from its established position as a manufacturer of home textile products for Reliance Industries Ltd (RIL) in South India. Rating Sensitivity Factors: Upward factors: * Improvement in EBITDA margin, and NCA in the range of INR1-2 crores. * Improvement in the working capital requirements. Downward factors: * Decline in the EBITDA margin, and NCA less than INR0.5 crores. * Stretch in the working capital requirements. Set up in 2017, LW is a partnership firm managed by Ms R Nandini and Mr. Gopi Kumar. The firm is a distributor of RIL home textile products and other related products. Also, the firm is also engaged in the trading of TATA spare parts for commercial vehicle. MAKRO CAST: Insolvency Resolution Process Case Summary ------------------------------------------------------ Debtor: M/s Makro Cast Private Limited S-F6, Geetanjali Apartments Tikkle Road, Mogalrajapuram Vijayawada, Krishna District Andhra Pradesh 520010 Insolvency Commencement Date: December 13, 2019 Court: National Company Law Tribunal, Vijayawada Bench Estimated date of closure of insolvency resolution process: June 10, 2020 Insolvency professional: Prabhakar Rao Kammula Interim Resolution Professional: Prabhakar Rao Kammula 39-4-1, S5 Koduru Enclave Pitchaiah Street, Labbipet Vijayawada 520010 Krishna District Andhra Pradesh E-mail: kammulaprabhakar@hotmail.com Mobile: 9848124608 - and - 301, 3rd Floor, Bhavya's Fantastika D.No. 8-2-684/A, Road No. 12 Banjara Hills, Hyderabad 500034 Telangana State Last date for submission of claims: December 30, 2019 MANIK COMMERCIAL: CRISIL Lowers Rating on INR4.9cr LT Loan to D --------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Manik Commercial Private Limited (MCPL) to 'CRISIL D' from 'CRISIL B+/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3 CRISIL D (Downgraded from 'CRISIL B+/Stable') Long Term Loan 4.90 CRISIL D (Downgraded from 'CRISIL B+/Stable') Proposed Cash .25 CRISIL D (Downgraded from Credit Limit 'CRISIL B+/Stable') The downgrade reflects delay in servicing debt obligation, due to stretched liquidity. The rating also reflects the small scale of operations in an intensely competitive industry. However, the company benefits from the extensive experience of its promoters. Key Rating Drivers & Detailed Description Delay in Servicing of Debt Obligation The company has delayed repayment of its loan by more than 60 Days and has been classified Special Mention Account 2 (SMA-2) Weakness: * Irregularity in debt servicing: Weak liquidity has resulted in delays in servicing of Cash Credit by the Company. * Small scale of operations: With estimated revenue of Rs.8 crore during fiscal 2018, the scale remains small. The scale is expected to remain small over the medium-term due to limited capacities and highly fragmented industry. Strengths: * Extensive experience of the promoter in the iron industry: The promoter's experience of over a decade and healthy relationships with customers and suppliers should support the business. Liquidity Poor Liquidity is inadequate to meet obligations of Cash Credit on timely basis. Rating Sensitivity factors Upward factors * Track record of timely debt servicing for at least over 90 days * Sustainable improvement in financial and liquidity risk profile MCPL incorporated in 1996 was primarily engaged in trading of various agriculture products like wheat, maize, jute etc. The company started the commercial production of its rice mill in the current fiscal year having a manufacturing capacity of 20 tonnes per day. MARK INT'L: CRISIL Cuts Rating on INR12cr Loan to B+ ---------------------------------------------------- CRISIL has downgraded the ratings on bank facilities of Mark International Foods Stuff Private Limited (MIFSPL) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 12 CRISIL B+/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB/Stable ISSUER NOT COOPERATING') Proposed Cash 3 CRISIL B+/Stable (ISSUER NOT Credit Limit COOPERATING; Revised from 'CRISIL BB/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with MIFSPL for obtaining information through letters and emails dated November 26, 2019 and December 2, 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 MIFSPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on MIFSPL 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 MIFSPL Revised to '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. MIFSPL was set up in 2012, by the promoter, Mr Riyaz Kader. The company processes and exports buffalo and other meat products, and has a slaughter house and processing facility at Sangli, Maharashtra. MBL INFRA: SC Stays Order Allowing Promoter to Take Over Company ---------------------------------------------------------------- The Economic Times reports that the Supreme Court has stayed an National Company Law Appellate Tribunal (NCLAT) order allowing Anjanee Kumar Lakhotia, the promoter of ailing MBL Infrastructure, to take over the company under a resolution plan submitted under the Insolvency Code despite a specific bar against it in the law. The top court will now examine the issue on Feb. 2, 2020, ET discloses. Acting on a plea by banks led by Bank of Baroda, IDBI and SBI, a bench comprising Justices Arun Mishra and Surya Kant stayed the NCLAT order of Aug. 16, 2019, dismissing an appeal against the Kolkata NCLT decision to allow such a resolution plan to go through, the report discloses. RBL bank had initiated the corporate insolvency resolution process against the company in 2017, ET discloses. The COC eventually cleared a resolution plan submitted by Lakhotia with a 78% vote. According to the report, the NCLT upheld the resolution plan rejecting pleas by the banks that the promoter cannot bid for an ailing company in the face of the bar under Section 29A of the Code. ET relates that the banks contended that under Section 29A (h) Lakhotia, being the Managing Director, Promotor, Personal Guarantor of the Corporate Debtor, was ineligible to be a resolution applicant. The tribunal ruled that the personal guarantees against Lakhotia had not been invoked and hence he was not barred under either under Section 29A(c) and (h). The banks then went to the NCLAT pointing that the NCLT finding that bank guarantees had not been invoked against Lakhotia were "erroneous" and placed on record the letters invoking the guarantees. In fact, Lakhotia had been declared a "wilful defaulter" by Bank of Baroda, the banks pointed out, ET relays. But the NCLAT ruled against them and refused to interfere with the plan as it did not discriminate between the operational and financial creditors. The banks then appealed to the top court. Among other things, they pointed out the incongruity of allowing the promoter/MD to make an upfront payment of only INR59.86 crore although the total debts of the financial creditors stood at a whopping INR1480.17 crore, the report states. The rest of the INR1,188.34 crore was to be paid in the form of non-convertible debentures redeemable after 8 years. "How could such a resolution plan made at the instance of the MD/promotor be accepted?" Can a promoter through the IBC circumvent the entire recovery process and regain control resulting in a huge haircut by secured creditors," BOB's appeal demanded to know, ET relays. The ailing company, the promoter and the COC will now have to file their replies to the top court notice so that the top court can examine all the legal issues involved in the case, the report adds. MBL Infrastructures Limited is engaged in execution of civil engineering projects with specialisation in roads & highways. OM ENERGY: CRISIL Migrates B+ on INR40cr Loans to Not Cooperating ----------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of OM Energy Generation Private Limited (OEGPL) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 1.65 CRISIL B+/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) Rupee Term Loan 38.35 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with OEGPL for obtaining information through letters and emails dated November 26, 2019 and December 2, 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 OEGPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on OEGPL is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of OEGPL to 'CRISIL B+/Stable Issuer not cooperating'. OEGPL, part of the OPG group, was incorporated in 2010 to execute a 7-megawatt hydropower project in Chamba (Himachal Pradesh). The company is promoted by Mr Ravi Gupta and his family members. Its daily operations will be managed by director Mr Dalip Dua. OEGPL is expected to commence commercial operations in April/May 2019. P. C. INDUSTRIES: CRISIL Moves B on INR7.5cr Debt to NonCooperating ------------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of P. C. Industries (PCI) to 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5.5 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) Term Loan 1.99 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with PCI for obtaining information through letters and emails dated November 26, 2019 and December 2, 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 PCI, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on PCI is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of PCI to 'CRISIL B/Stable Issuer not cooperating'. Established in 1996, Ahmedabad, Gujarat-based PCI, a proprietorship concern of Mr Mayur Shah, manufactures electrical utilities such as switch gear, fuse gear, re-wireable kit-kat fuses, fuse links, bases, fittings and pullers; link disconnectors, bus bar support, cut-outs, and distribution box assemblies. These are used in power transmission and distribution infrastructure, industrial, and other applications. Mr Shah and his sons, Mr Falun Shah, and Mr Honey Shah manage the operations. PARAMESWARA COTTON: CRISIL Moves B+ Ratings to Not Cooperating -------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Parameswara Cotton Mills (PCM) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 9 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Long Term Loan 0.7 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Proposed Long Term 0.3 CRISIL B+/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) CRISIL has been consistently following up with PCM for obtaining information through letters and emails dated November 26, 2019 and December 2, 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 PCM, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on PCM is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of PCM to 'CRISIL B+/Stable Issuer not cooperating'. PCM, set up in 1972 and promoted by Mr K Nageswara Rao, gins and presses cotton. The firm is based in Guntur, Andhra Pradesh. PARAMOUNT FORGE: CRISIL Keeps B+ Rating in Not Cooperating ---------------------------------------------------------- CRISIL said the ratings on bank facilities of Paramount Forge (PF) continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 9.5 CRISIL B+/Stable (ISSUER NOT COOPERATING) Foreign Usance 1.5 CRISIL B+/Stable (ISSUER NOT Bills Purchase- COOPERATING) Discounting Letter Of Guarantee 6.62 CRISIL A4 (ISSUER NOT COOPERATING) Proposed Long Term 22.23 CRISIL B+/Stable (ISSUER NOT Bank Loan Facility COOPERATING) CRISIL has been consistently following up with PF for obtaining information through letters and emails dated November 26, 2019 and December 2, 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 PF, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on PF 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 PF continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. PF was established in 1996 as a partnership firm by the members of Hararwala and Bhagat family. The firm is engaged in manufacturing and exports of carbon steel, stainless steel, and alloy steel forged flanges used in pipe fittings catering to the oil and gas and petrochemicals industry. PLANET PR: CRISIL Lowers Rating on INR8cr Cash Loan to 'D' ---------------------------------------------------------- CRISIL has downgraded the ratings on Planet PR Private Limited (Planet PR) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with Planet PR for obtaining information through letters and emails dated May 31, 2018 and November 22, 2018, August 31, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company'. Detailed Rationale Rating reflects delays in debt servicing by Planet PR. Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Planet PR, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Planet PR, 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 debt servicing, the ratings on bank facilities of Planet PR have been downgraded to 'CRISIL D Issuer Not Cooperating' from '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. Planet PR, promoted by Odisha-based Mr. Ranjan Kumar Pattanayak and Mr. Pradyumna Singh, trades in iron ore and coal. Its operations are primarily managed by Mr. Ranjan Kumar Pattanayak. PRADEEP TRANSCORE: CRISIL Moves B+ Debt Ratings to Not Cooperating ------------------------------------------------------------------ CRISIL has migrated the rating on bank facilities of Pradeep Transcore Private Limited (PTPL) to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5.5 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Inland/Import 4.5 CRISIL A4 (ISSUER NOT Letter of Credit COOPERATING; Rating Migrated) CRISIL has been consistently following up with PTPL for obtaining information through letters and emails dated November 26, 2019 and December 2, 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 PTPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on PTPL is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of PTPL to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. PTPL was set up as a proprietorship firm, Pradeep Machinery Tools, in 2003, and was reconstituted as a private limited company with the present name in 2005. It manufactures laminations from cold-rolled grain-oriented steel and solid insulating components for power and distribution transformers. It is based in Allahabad, Uttar Pradesh. R & M RASAYANA: Insolvency Resolution Process Case Summary ---------------------------------------------------------- Debtor: R & M Rasayana Private Limited A-3028, Oberoi Garden Estate Off Saki Vihar Road Chandivali, Andheri East Mumbai, Mumbai City MH 400072 IN Insolvency Commencement Date: December 18, 2019 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: June 24, 2020 Insolvency professional: Mr. Raj Kumar Dad Interim Resolution Professional: Mr. Raj Kumar Dad 302/L-Wing Shree Sankeshwar Nagar Society S.V. Road, Ashok Van Dahisar East, Mumbai City Maharashtra 400068 E-mail: rajkdad@gmail.com - and - B-202, Sharaton Classic Dr. Charatsingh Colony Andheri East, Mumbai Maharashtra 400069 E-mail: cirp.rmrasayana@gmail.com Last date for submission of claims: January 10, 2020 RAFFLES GREEN: CRISIL Keeps B- on INR9cr Loans in Not Cooperating ----------------------------------------------------------------- CRISIL said the ratings on bank facilities of Raffles Green Pet India Private Limited (RGP) continues to be 'CRISIL B-/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee .95 CRISIL A4 (ISSUER NOT COOPERATING) Cash Credit 4.00 CRISIL B-/Stable (ISSUER NOT COOPERATING) Proposed Long Term .10 CRISIL B-/Stable (ISSUER NOT Bank Loan Facility COOPERATING) Term Loan 4.95 CRISIL B-/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with RGP for obtaining information through letters and emails dated November 26, 2019 and December 2, 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 RGP, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on RGP 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 RGP continues to be 'CRISIL B-/Stable/CRISIL A4 Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. Incorporated in 2013, Raffles Green Pet India Pvt. Ltd. (RGP) is Kadi based company. It is setting up a unit to manufacture pet flakes by recycling used PET bottles. The company is promoted by Mr. Jerambhai Chhaganbhai Kalathiya and his younger brother, Mr. Ankitbhai Mansukhbhai Ajani. The year 2015-16 was the first year for the operations. RAM LAL ANEJA: CRISIL Lowers Ratings on INR30cr Loans to 'D' ------------------------------------------------------------ CRISIL has downgraded its rating on the long-term facilities of Ram Lal Aneja Foods Private Limited (RLAF) to 'CRISIL D' from 'CRISIL BB-/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 26 CRISIL D (Downgraded from 'CRISIL BB-/Stable') Working Capital 4 CRISIL D (Downgraded from Demand Loan 'CRISIL BB-/Stable') The rating continues to reflect delay in interest servicing. Furthermore, the Company has below-average financial risk profile and large working capital requirement leading to stretched liquidity. However, it benefits from the extensive industry experience of the promoters. Analytical Approach Unsecured loan of INR7.41 crore (as on March 31, 2018) extended by the promoters have been treated as neither debt nor equity as they subordinated to bank debt and are expected to remain the business over the medium term. Earlier it was treated as 75% equity and 25% debt. Key Rating Drivers & Detailed Description Weakness: * Below-average financial risk profile: Networth was modest and gearing high at INR6.15 crore and 7.49 times, respectively, as on March 31, 2018. Further, debt protection metrics were average with interest coverage and net cash accrual to adjusted debt ratios of 1.21 times and 0.01 time, respectively, in fiscal 2018. * Large working capital requirement: Gross current assets were high at 257 days driven by inventory of 182 days and debtors of 31 days, respectively, as on March 31, 2018. Further, inventory is high due to seasonal nature of commodity, because of which paddy stock of 5-6 months and that of rice of about a month is maintained. Strengths: * Extensive experience of the promoters: Benefits from the promoters' experience of more than three decades and established relationships with suppliers and customers should continue to support the business. Moreover, need-based funding support from the promoters is expected to continue. Liquidity Poor Liquidity is constrained by high bank limit utilisation'95% over the past 12 months through August 2018. Rating Sensitivity factors Upward factors: * Timely servicing of debt for over 90 days. * Improvement in scale of operations while maintaining operating margins in line with historical levels. Incorporated in 2013, RLAF promoted by Mr Ram Lal and his son Mr Ashok Kumar, processes basmati rice. RAMKRIPA AGRO: CRISIL Lowers Rating on INR4.95cr Loan to 'D' ------------------------------------------------------------ Due to inadequate information, CRISIL, in line with Securities and Exchange Board of India guidelines, had migrated its rating on the long-term bank facilities of Ramkripa Agro Foods Private Limited (RAFPL) to 'CRISIL B+/Stable Issuer Not Cooperating'. However, the management has subsequently started sharing the requisite information for carrying out a comprehensive review of the ratings. Consequently, CRISIL is downgrading its rating to 'CRISIL D' from 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.95 CRISIL D (Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') Long Term Loan 2.55 CRISIL D (Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') The downgrade reflects poor liquidity, reflected in delay in principal repayment of the term loan. The rating also reflects company's modest scale of operations. However, these weaknesses are partially offset by extensive experience of the promoter in the sugar syrup industry. Key Rating Drivers & Detailed Description Weaknesses * Delay in debt servicing: There was a delay in servicing of the maturing debt obligation due to cash flow mismatch. * Modest scale of operations: Intense competition from several large and small players dispersed across the country catering to the local demand may continue to restrict scalability. Operating income stood modest at INR20.5-21.7 crore in past three fiscals through fiscal 2019; INR21.11 crore in fiscal 2019. Crisil believe that RAFPL's scale will remain modest over the medium term. Strength * Extensive industry experience of the promoter: The promoter, Mr Rajinder Arora, has an experience of more than a decade in the sugar syrup industry and hence was able to establish a healthy relationship with customers in diversified end-user industries. The experience should continue to support the business risk profile over the medium term. Liquidity Poor Liquidity is poor as reflected in delay in meeting maturing debt obligation due to cash flow mismatch. Rating sensitivity factors Upward factors: * Timely servicing of debt for over 90 days * Improvement in the working capital cycle. RAFPL was established in 2007, promoted by the Delhi-based Mr Rajinder Arora. The company manufactures invert sugar syrup, which has applications in the confectionery, beverages, pharmaceuticals, distillery, and other industries. The plant, located in Una, Himachal Pradesh, has a capacity of 4,500 tonne per annum. S.T. DYEING: CRISIL Moves B+ on INR9cr Loans to Not Cooperating --------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of S. T. Dyeing (ST) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Cash 2 CRISIL B+/Stable (ISSUER NOT Credit Limit COOPERATING; Rating Migrated) Proposed Fund- 0.5 CRISIL B+/Stable (ISSUER NOT Based Bank Limits COOPERATING; Rating Migrated) Proposed Term Loan 6.5 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with ST for obtaining information through letters and emails dated November 26, 2019 and December 2, 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 ST, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on ST is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of ST to 'CRISIL B+/Stable Issuer not cooperating'. ST was set up by Mr Vikram Takkar, Mr Ajit Kumar, and Mr Varun Takkar in 2013 as a partnership firm. It is engaged in dyeing of fabric on a job-work basis at its facility in Ludhiana, Punjab. S.V.C. PROJECTS: CRISIL Lowers Rating on INR54cr Loan to 'D' ------------------------------------------------------------ CRISIL has downgraded its ratings on the bank facilities of S.V.C. Projects Private Limited (SVC) to 'CRISIL D/CRISIL D' from 'CRISIL BB+/Stable/CRISIL A4+'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 54 CRISIL D (Downgraded from 'CRISIL A4+') Cash Credit 41 CRISIL D (Downgraded from 'CRISIL BB+/Stable') Long Term Loan 15 CRISIL D (Downgraded from 'CRISIL BB+/Stable') The downgrade was driven by delays is debt servicing owing to weak liquidity. Liquidity is weak because of delays in realisation of receivables of about INR37 crore from Andhra Pradesh Township and Infrastructure Development Corporation (APTIDCO). The ratings continue to reflect working capital intensive operations and exposure to tender-driven business. These weaknesses are partially offset by the extensive experience of promoters. Key Rating Drivers & Detailed Description Weaknesses: * Working capital intensive operations: Operations remain working capital intensive, gross current assets were in the range of 113-242 days for the last three fiscals ending March 31st 2019. However, the company has recently received orders of about INR280 crore from Bharat Electronics Limited (BEL), Baba Atomic Research Centre (BARC) and Military engineering services (MES) where the payment cycle is expected to be better; consequently, working capital cycle may improve going forward and the improvement in the same would remain a key monitarable. * Exposure to risks related to tender-based business: Since majority of sales are tender based, business risk profile remains exposed to ability to bid successfully. This is compounded by intense competition in the construction segment, which constrains profitability. Strength: * Extensive industry experience of the promoters and established relationships: SVC benefits from its experienced promoters who possess more than 3 decades of experience in undertaking civil construction contracts for ministry of defence and state government departments. The successful track record in executing projects has enabled the company to establish a relationship with various government bodies and thus helped the company to continuously scale up the operations. Liquidity Poor Liquidity profile remains poor due to stretched receivables. Payments for the orders executed in FY19 have been pending from March 2019. Owing to stretched receivables, there have been delays in debt servicing. Rating Sensitivity factors Upward factors: * Track record of timely debt servicing for at least over 90 days * Improvement in working capital cycle SVC was set up as a partnership firm in 1970, Sri Venkateswara Constructions, by Mr Satyanarayana Raju [it was reconstituted as a private-limited company in 1997]. Based in Vishakhapatnam, the company executes civil construction contracts on a turnkey basis related to construction of residential/commercial buildings, water supply, air-conditioning, and other electrical and technical works mainly for Ministry of Defence (Central Government), Public Works Department and other departments of state governments. SHRIPROP DWELLERS: CRISIL Moves D on INR50cr Debt to NonCooperating ------------------------------------------------------------------- CRISIL has migrated the rating on the non-convertible debentures (NCDs) of Shriprop Dwellers Pvt Ltd (SDPL) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL D'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Non Convertible 21.7 CRISIL D (ISSUER NOT Debentures- COOPERATING; Rating Migrated) Series I Non Convertible 50.0 CRISIL D (ISSUER NOT Debentures- COOPERATING; Rating Migrated) Series II CRISIL has been following up with SDPL for getting information through letter and emails, dated December 3, 2019, and December 17, 2019, December 23, 2019 apart from telephonic communication. However, the issuer has remained non-cooperative. Detailed Rationale Despite repeated attempts to engage with SDPL's management, CRISIL has not received any information on either the financial performance or strategic intent of the company, which restricts CRISIL's ability to take a forward-looking view on its credit quality. CRISIL believes the information available 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 meeting debt obligation, CRISIL has migrated the rating on the non-convertible debentures (NCDs) of SDPL to 'CRISIL D Issuer Not Cooperating' from 'CRISIL D'. Analytical Approach CRISIL has evaluated the project risk for the entire Shriram Summitt project and has used that as a surrogate for the project risk of SDPL. This is because the company houses only units from Shriram Summitt. SDPL, a special purpose vehicle incorporated in 2014, is engaged in the real estate business, and holds units in the Shriram Summitt project of Shriram Properties Pvt Ltd (SPPL). SDPL funded the purchase of these units through inter-corporate deposits (ICDs) from Piramal Estate Pvt Ltd. The ICDs were subsequently replaced with NCDs from Piramal Estate Pvt Ltd. The NCDs are to be serviced from the proceeds of the sale of SDPL's share of units in Shriram Summitt. Incorporated in 1995, SPPL is part of the Shriram group, and has projects in Bengaluru, Chennai, Visakhapatnam, Coimbatore, Hyderabad, and Kolkata. It develops residential and commercial real estate projects, especially integrated townships, commercial spaces, and special economic zones. SMT MACHINES: CRISIL Moves D on INR13.9cr Loans to Not Cooperating ------------------------------------------------------------------ CRISIL has migrated the rating on bank facilities of SMT Machines India Limited (SMT) to 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6.2 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) Proposed Term 7.7 CRISIL D (ISSUER NOT Loan COOPERATING; Rating Migrated) CRISIL has been consistently following up with SMT for obtaining information through letters and emails dated December 11, 2019 and December 16, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SMT, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SMT is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of SMT to 'CRISIL D Issuer not cooperating'. Incorporated in 1992 and promoted by Mr Surinder Kumar Mittal and family, SMT (formerly, Aman Multilateral Pvt Ltd; name changed in the late 1990s) designs and manufactures equipment for steel rolling mill plants. SPENTA BUILDERS: Insolvency Resolution Process Case Summary ----------------------------------------------------------- Debtor: Spenta Builders Private Limited 3-A/B, Raja Bahadur Mansion 20, 1st Floor, Ambalal Doshi Marg, Mumbai 400023 Insolvency Commencement Date: December 20, 2019 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: June 17, 2020 (180 days from commencement) Insolvency professional: Shrikant Zawar Interim Resolution Professional: Shrikant Zawar D-26/404, Yogi Ashram Yogi Nagar, Borivali (West) Mumbai 400091 E-mail: shrikantzawar1@yahoo.co.in cirp.spenta@gmail.com Classes of creditors: Allottees under Real Estate Project Insolvency Professionals Representative of Creditors in a class: Kanak Jani Vithal Dahake Rajesh Kumar Mittal Last date for submission of claims: January 15, 2020 TRIMURTI CONCAST: Insolvency Resolution Process Case Summary ------------------------------------------------------------ Debtor: Trimurti Concast Private Limited Meerut Road Near 66 K.V. Power House Muzaffarnagar UP 251003 Insolvency Commencement Date: December 24, 2019 Court: National Company Law Tribunal, Allahabad Bench Estimated date of closure of insolvency resolution process: June 21, 2020 (180 days from commencement) Insolvency professional: Sanjay Kumar Dewani Interim Resolution Professional: Sanjay Kumar Dewani 133, Bhagirathi Appts Plot No. 13/1, Sector-9 Rohini, New Delhi 110085 E-mail: sanjaydewani@gmail.com - and - D-55, Defence Colony New Delhi 110024 E-mail: cirp.tcpl@gmail.com Last date for submission of claims: January 7, 2020 TULSI ROCKS: CRISIL Moves D on INR20cr Loans to Not Cooperating --------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Tulsi Rocks Private Limited (TRPL) to 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) Export Packing 3 CRISIL D (ISSUER NOT Credit COOPERATING; Rating Migrated) Long Term Loan 15 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with TRPL for obtaining information through letters and emails dated November 26, 2019 and December 2, 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 TRPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on TRPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of TRPL to 'CRISIL D Issuer not cooperating'. Incorporated in 2013 and promoted by Mr. Prabhat Bhandari and his family, TRPL is engaged in granite processing in Hyderabad (Telangana). UMARAI WORLDWIDE: Insolvency Resolution Process Case Summary ------------------------------------------------------------ Debtor: Umarai Worldwide Private Limited A/8/10, Groma House Sector-19, Plot No. 14C Vashi, Navi Mumbai Thane, MH 400703 Insolvency Commencement Date: December 20, 2019 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: June 24, 2020 Insolvency professional: Mr. Raj Kumar Dad Interim Resolution Professional: Mr. Raj Kumar Dad 302/L-Wing Shree Sankeshwar Nagar Society S.V. Road, Ashok Van Dahisar East, Mumbai City Maharashtra 400068 E-mail: rajkdad@gmail.com - and - B-202, Saharaton Classic Dr. Charatsingh Colony Andheri East, Mumbai Maharashtra 400069 E-mail: cirp.umaraiworldwide@gmail.com Last date for submission of claims: January 10, 2020 VIJAY BREEDING: CRISIL Moves B+ on INR6.4cr Loans in Not Cooperatin ------------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Vijay Breeding Farm and Hatcheries (VBFH) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5.25 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Term Loan 1.27 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with VBFH for obtaining information through letters and emails dated November 26, 2019 and December 2, 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 VBFH, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on VBFH is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of VBFH to 'CRISIL B+/Stable Issuer not cooperating'. VBFH is a proprietorship firm set up in 1996 by Mr Rajvir Singh Jaglan. VBFH has day old chick breeder farms with a capacity of 90,000 parent birds (with a female-to-male ratio of 90:10) at Panipat, Haryana. ================= S I N G A P O R E ================= HYFLUX LTD: Singapore Bourse Seeks Tighter Norms on Retail Bonds ---------------------------------------------------------------- Reuters reports that Singapore Exchange Ltd's (SGX) regulatory unit is looking into imposing stricter regulations for listed retail bonds, including tightening the admission criteria, a move that follows a high profile default by water treatment company Hyflux. In a statement on Jan. 2, Singapore Exchange Regulation (SGX RegCo) said it had set up a working group comprising representatives from law firms, banks and an investor group to review the retail bonds regulatory framework, Reuters relates. "The possibility of tightening the admission criteria including requiring a minimum level of subscription by institutional investors and a credit rating are among matters to be discussed," Reuters quotes Michael Tang, head of listing policy and product admission at SGX RegCo, as saying. The working group is expected to give its recommendations to SGX RegCo by mid-2020, following which a public consultation is likely to take place by the year-end, SGX RegCo said, Reuters relays. 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. In November 2019, Hyflux entered into a restructuring deal with United Arab Emirates-based utility Utico FZC, according to Reuters. LIBRA GROUP: Inks Deal With Buyer for 100% Stake in Unit -------------------------------------------------------- Lee Meixian at The Business Times reports that Libra Group on Jan. 2 said it has entered into a legally-binding memorandum of understanding with Cascade Metals, a Singapore-incorporated investment holding company, for the disposal of the company's 100-per-cent stake in Libra Engineering for SGD100,000 in cash. BT says the Catalist-listed group is currently in talks with its sponsor regarding the classification of the proposed disposal under the Catalist Rules. According to the report, Libra said the buyer is an independent third party and its directors and sole shareholder are not related to any of the directors and controlling shareholders of the company or any of its associates. Libra Engineering manufactures air-conditioning and mechanical ventilation ducts. It has several subsidiaries incorporated in Singapore and Malaysia, none of which are in operation. Libra said it is currently undergoing a restructuring phase and is in the midst of rationalising its operations, BT relays. "The target, as at the date of this announcement, had wound down most of its operations and currently has no more substantial operations. As such, the proposed disposal would allow the group to dispose of non-operational assets for cash and allow it to streamline its corporate structure." Both sides will negotiate and try to agree on the terms and conditions of the sale-and-purchase agreement by Jan. 31, 2020, the report discloses. About Libra Group Libra Group Limited provides integrated M&E services as a sub-contractor. The Company's services include the contracting and installation of ACMV systems, fire alarms and fire protection systems, electrical systems as well as sanitary and plumbing services. Libra also manufactures and sells ACMV related products. As reported in the Troubled Company Reporter-Asia Pacific on Oct. 18, 2019, The Business Times said the Singapore High Court has granted Libra Group a six-month reprieve against its creditors. Libra's creditors include UOB, which issued a letter of demand on Oct. 8, 2019, for US$18.8 million, and Maybank Singapore, which on Sept. 3, 2019, issued a letter of demand to possess Libra's property at 34 Sungei Kadut Loop. LIBRA GROUP: Unit Served Writ of Summons by WMS Industrial Serves ----------------------------------------------------------------- Lee Meixian at The Business Times reports that Libra Group's unit, Libra Engineering & Manufacturing, has been served with a writ of summons and a statement of claim filed by WMS Industrial Gas & Equipment in Malaysia courts after supplier Yick Hoe Steel Industries filed a winding-up petition in the High Court of Malaya last month. The matter is fixed for a case management before Puan Norhidayah Binti Abd Manaf on Jan. 21, 2020, the report discloses. According to BT, Libra said that it is in the process of obtaining an English translation of the writ of summons and the statement of claim which are drafted in Malay. "The company will seek Malaysia legal counsel's advice on the next steps which the defendant should take given the current circumstances surrounding the defendant, including but not limited to the winding-up petition made against the defendant." Libra said it will make further announcements on material updates as they occur, BT adds. About Libra Group Libra Group Limited provides integrated M&E services as a sub-contractor. The Company's services include the contracting and installation of ACMV systems, fire alarms and fire protection systems, electrical systems as well as sanitary and plumbing services. Libra also manufactures and sells ACMV related products. As reported in the Troubled Company Reporter-Asia Pacific on Oct. 18, 2019, The Business Times said the Singapore High Court has granted Libra Group a six-month reprieve against its creditors. Libra's creditors include UOB, which issued a letter of demand on Oct. 8, 2019, for US$18.8 million, and Maybank Singapore, which on Sept. 3, 2019, issued a letter of demand to possess Libra's property at 34 Sungei Kadut Loop. =============== T H A I L A N D =============== KTB SECURITIES: Fitch Rates THB400MM Sub. Unsec. Debt 'B(tha)' -------------------------------------------------------------- Fitch Ratings assigned a National Short-Term Rating of 'B(tha)' to KTB Securities Public Company Limited's (BB(tha)/Stable/B(tha)) upcoming issue of up to THB400 million in subordinated unsecured debentures. The debentures will have a maturity of nine months. The company plans to use the proceeds to buy back outstanding subordinated debentures. KEY RATING DRIVERS The National Short-Term Rating of 'B(tha)' for the upcoming subordinated debentures is derived from the implied National Long-Term Rating of 'BB-(tha)' based on the rating correspondence table in Fitch's Short-Term Rating Criteria. The implied National Long-Term Rating of the subordinated debentures of 'BB-(tha)' is one notch below KTBST's National Long-Term Rating of 'BB(tha)' to reflect the subordinated debentures' higher loss-severity risk relative to senior unsecured instruments, as per Fitch's Corporate Hybrids Treatment and Notching Criteria. This arises from the debentures' subordinated status, as subordinated noteholders rank after senior creditors in the priority of claims. Additional notching has not been applied due to the lack of going-concern loss-absorption and equity-conversion features. By Fitch's rating definition, a National Short-Term Rating of 'B(tha)' indicates an uncertain capacity for timely payment of financial commitments relative to other issuers or obligations in the same country. RATING SENSITIVITIES The National Short-Term Rating of the subordinated debentures is sensitive to the change in KTBST's National Long-Term Rating, which is the anchor rating. However, that is unlikely to occur in the short-term as the change has to be in multiple notches, and KTBST's National Long-Term Rating is on Stable Outlook. KTBST's National Ratings are based on its standalone financial profile and reflect its small domestic franchise. The ratings also take into account KTBST's small capital base and higher leverage relative to Fitch-rated peers. The company remains exposed to funding and liquidity risk over the medium-term due to its unproven funding stability and limited history of capital-market access. Nonetheless, funding and liquidity risk over the short-term could be mitigated by KTBST's liquid assets and available credit lines. [*] THAILAND: BAAC Rejigs to Focus on Communities to Fight Poverty ------------------------------------------------------------------ Bangkok Post reports that the state-owned Bank for Agriculture and Agricultural Cooperatives (BAAC) is set to revamp its branches' tasks to focus on community business development to boost the income of rural people and step up efforts to fight poverty. Bangkok Post relates that BAAC president Apirom Sukprasert said some 20% of the bank's 20,000 employees across the country will prioritise development of community business and small and medium-sized enterprise (SME) farming. Under the reorganisation, the branch tasks will be divided into three groups: retail customer care, customer development and SME farming development, the report says. Retail customer care will centre on preventive debt restructuring of retail clients who participate in a three-year debt moratorium scheme to prevent them from turning into defaulters in the future, he said, Bangkok Post relays. These customers have a combined debt of THB770 billion. Those struggling with debt repayment can seek restructuring that allows them to pay only interest for a certain period, pay off the entire debt in up to 20 years, and apply for new loans to improve production, according to Bangkok Post. Mr. Apirom said the Bank of Thailand already approved the BAAC's preventive debt restructuring scheme, enabling it to adopt an accrual basis instead of cash basis accounting to help avoid affecting the bank's financial position, relays Bangkok Post. To fight against poverty, the BAAC will work with related agencies and allow each of its 928 branches to pick a pilot project, he said. Bangkok Post says the bank has studied China's poverty reduction methods, which cut the poor in that country to 16.6 million in 2018 from 62 million in 2015. To match the debt suspension scheme, the BAAC aims to raise THB50 billion by issuing bonds with a maturity of 5-7 years. Ten billion baht in bonds were approved by the board to be sold by March 2020, the report notes. =============== X X X X X X X X =============== [*] Increase in Defaults Expected Across Asia Before 2020 Ends -------------------------------------------------------------- Denise Wee at Bloomberg News reports that defaults across Asia may be headed even higher next year, with trouble seen especially in China and India. Many investors expect fewer bailouts by the Chinese government after it recently let commodities trader Tewoo Group default in the biggest failure on a dollar bond by a state-owned firm in two decades, according to Bloomberg. Companies in the region have been on a buying spree fueled by debt. Those factors could make things even worse in 2020 after China onshore defaults rose to a record in 2019. As some economies in Asia slow, companies are left vulnerable to any tightening in liquidity, Bloomberg notes. A rise in defaults would likely further weigh on investor sentiment, and raise the cost of borrowing for the riskiest firms, Bloomberg states. According to Bloomberg, Monica Hsiao, chief investment officer at hedge fund Triada Capital said defaults in China will likely rise in the onshore and offshore bond markets next year amid a tightening in funding, and weaker state-owned firms and local government financing vehicles may be at risk. The nation's real estate firms, traditionally seen as the bulwark of the economy, could also be vulnerable. "We should not assume that the China property sector is immune if conditions continue to tighten for small over-levered developers that do not have stakeholders with strong political ties, for example," Bloomberg quotes Ms. Hsiao as saying. A wave of acquisitions has also prompted companies with overextended balance sheets to stumble. Shandong Ruyi Technology Group Co., which made a string of overseas purchases, including U.K. trench coat maker Aquascutum, has been struggling to repay debt. Singapore-headquartered MMI International Ltd., which was sold to a Chinese buyout group, has missed loan repayments. In India, companies have defaulted on record amounts of local currency and international bonds as the shadow banking crisis has triggered a credit squeeze, Bloomberg discloses. While Essar Steel India Ltd.'s insolvency has been resolved with its takeover by ArcelorMittal, other companies have faced delays in the sale of assets under India's bankruptcy law. "India is still struggling to deal with the mountain of debt that exists, and there haven't been yet that many success stories," Bloomberg quotes David Kidd, a partner at Linklaters who focuses on restructuring and insolvency matters, as saying. In Southeast Asia, oil and gas companies are still reeling from depressed oil prices. There has been an "uptick" in defaults in Malaysia, and a few companies have had to restructure debt with lenders, according to Mr. Kidd, Bloomberg relays. Bloomberg says growing trade linkages between China and the rest of Asia also leave other regional economies vulnerable to the nation's weakening growth. "The Chinese slowdown and the potential for defaults in China, perhaps that's also having a knock-on effect regionally," Bloomberg quotes Mr. Kidd as saying. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2020. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. 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