/raid1/www/Hosts/bankrupt/TCRAP_Public/200120.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 20, 2020, Vol. 23, No. 14
Headlines
A U S T R A L I A
8TH BROOKLYN: First Creditors' Meeting Set for Jan. 23
ABM RESOURCES: First Creditors' Meeting Set for Jan. 28
AUSTRALIAN SALES: Fitch Affirms BBsf Rating on Class E Debt
BEAUMARIS HOME: First Creditors' Meeting Set for Jan. 28
CELTIC PACIFIC: First Creditors' Meeting Set for Jan. 28
GLADSTONE UNITED: First Creditors' Meeting Set for Jan. 28
KELA CHARMS: First Creditors' Meeting Set for Jan. 28
STEP CHANGE: First Creditors' Meeting Set for Jan. 29
C H I N A
CHINA EVERGRANDE: Moody's Rates New USD Sr. Unsec. Notes B2
KANGDE XIN: Minsheng Bank Takes Stake for Debt Swap
RUGAO ECONOMIC: Fitch Assigns BB Rating to New USD Sr. Unsec. Bonds
I N D I A
ABHINAV INDUSTRIES: CRISIL Reaffirms B+ Rating on INR4cr Loan
B. B. PRODUCTS: CRISIL Lowers Rating on INR6cr Term Loan to D
BAWA APPLIANCES: CRISIL Cuts INR5cr Loan Rating to D, Not Coop.
BHUMYA TEA: CRISIL Cuts Rating on INR28.92cr Cash Loan to 'D'
CPR LABORATORIES: CRISIL Cuts Rating on INR5.54cr Loan to 'D'
HAPPY HOME: CRISIL Lowers Rating on INR75cr Term Loan to 'D'
ISWARYA ENTERPRISES: CRISIL Cuts Rating on INR9cr Loan to 'D'
JINDAL INDIA: Deutsche Bank-Led Group Makes Sole Bid for Debt
MANN MEDICITI: CRISIL Cuts Rating on INR6.0cr Loans to 'D'
RATNAGIRI SEEDS: CRISIL Reaffirms B+ Rating on INR3cr Cash Loan
SABER PAPER: Insolvency Resolution Process Case Summary
SANDHYA DEVELOPMENT: CRISIL Assigns B+ Rating to INR8cr Loans
SRINIVAS INFRASTRUCTURE: Ind-Ra Moves BB+ Rating to NonCooperating
V.V.G. PAPER: CRISIL Assigns 'B' Rating to INR21.75cr LT Loan
VGA DEVELOPERS: Insolvency Resolution Process Case Summary
VISWAM EDUCATIONAL: CRISIL Cuts Rating on INR4.96cr LT Loan to D
YES BANK: Moody's Reviews B2 Rating, Direction Uncertain
S I N G A P O R E
HYFLUX LTD: Applies for 3-Month Extension of Debt Moratorium
JEP HOLDINGS: Unit Served Writ of Summons, Statement of Claim
SWEE HONG: Proposes SGD4MM Placement as Part of Restructuring
- - - - -
=================
A U S T R A L I A
=================
8TH BROOKLYN: First Creditors' Meeting Set for Jan. 23
------------------------------------------------------
A first meeting of the creditors in the proceedings of 8th Brooklyn
& Co Hospitality Group Pty Ltd, trading as Souk, will be held on
Jan. 23, 2020, at 9:30 a.m. at the offices of Hall Chadwick, Level
14, at 440 Collins Street, in Melbourne, Victoria.
Richard Lawrence and Richard Albarran of Hall Chadwick were
appointed as administrators of 8th Brooklyn on Jan. 15, 2020.
ABM RESOURCES: First Creditors' Meeting Set for Jan. 28
-------------------------------------------------------
A first meeting of the creditors in the proceedings of ABM
Resources (QLD) Pty Ltd will be held on Jan. 28, 2020, at 1:00 p.m.
at the offices of PKF Brisbane, Level 6, at 10 Eagle Street, in
Brisbane, Queensland.
Geoffrey Trent Hancock of PKF was appointed as administrator of ABM
Resources on Jan. 15, 2020.
AUSTRALIAN SALES: Fitch Affirms BBsf Rating on Class E Debt
-----------------------------------------------------------
Fitch Ratings affirmed the ratings of 46 tranches across five
Latitude credit card trusts. The transactions are securitisations
of Australian and New Zealand credit card receivables originated by
Latitude Finance Australia entities.
RATING ACTIONS
Australian Sales Finance and Credit Cards Trust
Class A; LT AAAsf Affirmed; previously at AAAsf
Class B; LT AAsf Affirmed; previously at AAsf
Class C; LT Asf Affirmed; previously at Asf
Class D; LT BBBsf Affirmed; previously at BBBsf
Class E; LT BBsf Affirmed; previously at BBsf
Latitude Australia Credit Card Master Trust
2017-1 Cl. A1 AU3FN0034419; LT AAAsf Affirmed; previously at AAAsf
2017-1 Cl. A2 AU3FN0034955; LT AAAsf Affirmed; previously at AAAsf
2017-1 Cl. B AU3FN0034427; LT AAsf Affirmed; previously at AAsf
2017-1 Cl. C AU3FN0034435; LT Asf Affirmed; previously at Asf
2017-1 Cl. D AU3FN0034443; LT BBBsf Affirmed; previously at BBBsf
2017-1 Cl. E AU3FN0034450; LT BBsf Affirmed; previously at BBsf
2017-2 Cl. A1 AU3FN0037826; LT AAAsf Affirmed; previously at AAAsf
2017-2 Cl. A2 AU3FN0037834; LT AAAsf Affirmed; previously at AAAsf
2017-2 Cl. B AU3FN0037842; LT AAsf Affirmed; previously at AAsf
2017-2 Cl. C AU3FN0037859; LT Asf Affirmed; previously at Asf
2017-2 Cl. D AU3FN0037867; LT BBBsf Affirmed; previously at BBBsf
2017-2 Cl. E AU3FN0037875; LT BBsf Affirmed; previously at BBsf
2017-VFN; LT Asf Affirmed; previously at Asf
2018-1 Cl. A1 AU3FN0041513; LT AAAsf Affirmed; previously at AAAsf
2018-1 Cl. A2 AU3FN0041521; LT AAAsf Affirmed; previously at AAAsf
2018-1 Cl. B AU3FN0041539; LT AAsf Affirmed; previously at AAsf
2018-1 Cl. C AU3FN0041547; LT Asf Affirmed; previously at Asf
2018-1 Cl. D AU3FN0041554; LT BBBsf Affirmed; previously at BBBsf
2018-1 Cl. E AU3FN0041562; LT BBsf Affirmed; previously at BBsf
2019-1 Cl. A1 AU3FN0050035; LT AAAsf Affirmed; previously at AAAsf
2019-1 Cl. A2 AU3FN0050050; LT AAAsf Affirmed; previously at AAAsf
2019-1 Cl. B AU3FN0050068; LT AAsf Affirmed; previously at AAsf
2019-1 Cl. C AU3FN0050076; LT Asf Affirmed; previously at Asf
2019-1 Cl. D AU3FN0050084; LT BBBsf Affirmed; previously at BBBsf
2019-1 Cl. E AU3FN0050092; LT BBsf Affirmed; previously at BBsf
Australian Sales Finance and Credit Cards No.2 Trust
Class A1; LT AAAsf Affirmed; previously at AAAsf
Class A2; LT AAAsf Affirmed; previously at AAAsf
Class B; LT Asf Affirmed; previously at Asf
Class C; LT BBBsf Affirmed; previously at BBBsf
Class D; LT BBsf Affirmed; previously at BBsf
Latitude New Zealand Credit Card Master Trust
Class A NZLATD1001R5; LT AAAsf Affirmed; previously at AAAsf
Class B NZLATD1002R3; LT AAsf Affirmed; previously at AAsf
Class C NZLATD1003R1; LT Asf Affirmed; previously at Asf
Class D NZLATD1004R9; LT BBBsf Affirmed; previously at BBBsf
Class E NZLATD1005R6; LT BBsf Affirmed; previously at BBsf
Series 2018-VFN; LT BBBsf Affirmed; previously at BBBsf
New Zealand Sales Finance and Credit Cards Trust
Class A; LT AAAsf Affirmed; previously at AAAsf
Class B; LT AAsf Affirmed; previously at AAsf
Class C; LT Asf Affirmed; previously at Asf
Class D; LT BBBsf Affirmed; previously at BBBsf
Class E; LT BBsf Affirmed; previously at BBsf
KEY RATING DRIVERS
Stable Credit Card Receivables Performance: Charge-off performance
has remained stable over the last year with gross charge-offs
across all the Australia trusts averaging 4.6%, below the Fitch
steady-state assumption of 5.25%. New Zealand charge-offs have
averaged 3.5% over the past year, and Fitch has maintained its
steady-state assumption of 4.25% for the analysis.
The monthly payment rate (MPR), a measure of how quickly consumers
are paying off their credit card debt, has averaged 14.0% in
Australia and 10.7% in New Zealand over the past year. Fitch has
maintained its MPR steady state at 12.5% for Australia and 9.75%
for New Zealand.
Yield has remained steady over the past year across the
transactions, averaging 14.7% in Australia and 14.8% in New
Zealand. Fitch has maintained its gross yield steady state at 13.0%
in both countries.
The Stable Outlook on the notes reflects Fitch's expectations that
the performance and loss multiples will remain supportive of the
ratings and be underpinned by a stable macroeconomic environment in
Australia.
Satisfactory Originator and Servicer Quality: Fitch believes
Latitude is an effective and capable originator and servicer due to
its long and consistent record. Latitude, through previous
ownership, has been managing large consumer receivable portfolios
for over a decade in Australia and New Zealand. Fitch reviewed
Latitude's underwriting and servicing capabilities and found them
satisfactory. Latitude is not rated and servicer risk is mitigated
through back-up arrangements. Fitch undertook an onsite operational
review and found that the operations of the originator and servicer
were comparable with other non-bank credit card providers.
Mitigated Counterparty Risk: Fitch's rating of the notes is
dependent on the financial strength of certain counterparties.
Fitch believes this risk is currently mitigated, which is evident
from the ratings of the applicable counterparties to the
transactions. Counterparty risk was evaluated in the initial
transaction analysis through the review of transaction
documentation, legal opinion and structural features. There have
been no changes to any transaction since closing.
Mitigated Interest Rate Risk: Interest rate risk is currently
mitigated by available credit enhancement. There have been two
updates in the current cash flow modelling analysis. These are
regarding:
- the input for the index rate for all Latitude credit card
transactions which, when amended, reduced the interest rate
stresses on each transaction; and
- the modelling of the approved issuer levy as part of the
interest expenses in the Latitude New Zealand transactions which,
when amended, resulted in increased interest expenses.
However, due to all transactions performing in line with their
steady-state assumptions, this has resulted in no change to the
assigned ratings.
A summary of the steady states and rating stresses applied in the
cash flow modelling analysis is shown. Australian Sales Finance and
Credit Cards Trust's purchase-rate stress has been amended to align
it with the other Australian transactions:
Australia
Steady States:
Charge-offs: 5.25%
MPR: 12.5%
Gross yield: 13.00%
Purchase rate: 100%
Rating Stresses:
Ratings: AAAsf / AAsf / Asf / BBBsf / BBsf
Charge-offs (increase): 4.50x / 3.75x / 3.00x / 2.25x / 1.50x
MPR (% decrease): 40.00% / 35.00% / 30.00% / 25.00% / 20.00%
Gross yield (% decrease): 35.00% / 30.00% / 25.00% / 20.00% /
15.00%
Purchase rate (% decrease): 90.00% / 85.00% / 75.00% / 65.00% /
55.00%
New Zealand
Steady States:
Charge-offs: 4.25%
MPR: 9.75%
Gross yield: 13.00%
Purchase rate: 100%
Rating Stresses:
Ratings: AAAsf / AAsf / Asf / BBBsf / BBsf
Charge-offs (increase): 4.50x / 3.75x / 3.00x / 2.25x / 1.50x
MPR (% decrease): 40.00% / 35.00% / 30.00% / 25.00% / 20.00%
Gross yield (% decrease): 35.00% / 30.00% / 25.00% / 20.00% /
15.00%
Purchase rate (% decrease): 90.00% / 85.00% / 80.00% / 70.00% /
60.00%
In addition to the above stresses, Fitch has applied 50% haircuts
to interchange and late fee income and has excluded merchant
service fees when performing its cash flow analysis. Some of the
outstanding subordinate tranches of the trusts may be able to
support higher ratings based on the output of Fitch's proprietary
cash flow model. Since the credit card programme is set up as a
continuous funding programme and requires that any new issuance or
note reductions do not affect the rating of existing tranches, the
enhancement levels are set to maintain a constant rating level per
class of issued notes and may provide more than the minimum
enhancement necessary to retain issuance flexibility. Therefore,
Fitch may decide not to assign or maintain ratings above the
current outstanding ratings in anticipation of future issuance or
reductions.
RATING SENSITIVITIES
Fitch has evaluated the sensitivity of the ratings to decreased
yields, increased charge-offs and decreased MPRs over the life of
the transactions. The model indicates the note ratings are
sensitive to an increase in defaults and a reduction in MPRs, with
less sensitivity to lower yields. The full results of the analysis
are shown:
Australian Sales Finance and Credit Cards Trust
Rating sensitivity to increased charge-off rate:
Current ratings: 'AAAsf'; 'AAsf'; 'Asf', 'BBBsf', 'BBsf'
Increase base case by 25%: 'AA+sf'; 'AAsf'; 'Asf', 'BBBsf'; 'BBsf'
Increase base case by 50%: 'AA+sf'; 'A+sf'; A-sf', 'BBB-sf';
'BBsf'
Increase base case by 75%: 'AAsf'; 'Asf'; 'BBB+sf', 'BB+sf';
'BB-sf'
Rating sensitivity to reduced MPR:
Current ratings: 'AAAsf'; 'AAsf'; 'Asf', 'BBBsf'; 'BBsf'
Decrease base case by 15%: 'AA+sf'; 'AA-sf'; 'Asf', 'BBBsf';
'BBsf'
Decrease base case by 25%: 'AA+sf'; 'A+sf'; 'A-sf', 'BBB-sf';
'BBsf'
Decrease base case by 35%: 'AA-sf'; 'Asf'; 'BBBsf', 'BB+sf';
'BB-sf'
Rating sensitivity to reduced yield:
Current rating: 'AAAsf'; 'AAsf'; 'Asf', 'BBBsf', 'BBsf'
Decrease base case by 15%: 'AAAsf'; 'AAsf'; 'Asf', 'BBBsf', 'BBsf'
Decrease base case by 25%: 'AAAsf'; 'AAsf'; 'Asf', 'BBBsf', 'BBsf'
Decrease base case by 35%: 'AAAsf'; 'AAsf'; 'Asf', 'BBBsf', 'BBsf'
Rating sensitivity to combined increase in charge-off rate and
reduced MPR:
Current rating: 'AAAsf'; 'AAsf'; 'Asf', 'BBBsf', 'BBsf'
Increase base case by 25% and decrease by 15%: AA+sf; A+sf; BBB+sf;
BBB-sf; BBsf
Increase base case by 50% and decrease by 25%: A+sf; A-sf; BBB-sf;
BBsf; B+sf
Increase base case by 75% and decrease by 35%: A-sf; BBBsf; BB+sf;
B+sf; less than Bsf
Australian Sales Finance and Credit Cards No.2 Trust
Rating sensitivity to increased charge-off rate:
Current ratings: 'AAAsf'; 'AAAsf'; 'Asf', 'BBBsf', 'BBsf'
Increase base case by 25%: 'AA+sf'; 'AA+sf'; 'Asf', 'BBBsf';
'BBsf'
Increase base case by 50%: 'AAsf'; 'AA+sf'; 'Asf', 'BBB-sf';
'BB-sf'
Increase base case by 75%: 'AA-sf'; 'AA-sf'; 'A-sf', 'BB+sf';
'BB-sf'
Rating sensitivity to reduced MPR:
Current ratings: 'AAAsf'; 'AAAsf'; 'Asf', 'BBBsf'; 'BBsf'
Decrease base case by 15%: 'AA+sf'; 'AA+sf'; 'Asf', 'BBBsf';
'BBsf'
Decrease base case by 25%: 'AAsf'; 'AAsf'; 'A-sf', 'BBB-sf';
'BBsf'
Decrease base case by 35%: 'AA-sf'; 'AA-sf'; 'BBB+sf', 'BB+sf';
'BB-sf'
Rating sensitivity to reduced yield:
Current rating: 'AAAsf'; 'AAAsf'; 'Asf', 'BBBsf', 'BBsf'
Decrease base case by 15%: 'AAAsf'; 'AAAsf'; 'Asf', 'BBBsf',
'BBsf'
Decrease base case by 25%: 'AAAsf'; 'AAAsf'; 'Asf', BBBsf', 'BBsf'
Decrease base case by 35%: 'AA+sf'; 'AA+sf'; 'Asf', 'BBBsf',
'BB-sf'
Rating sensitivity to combined increase in charge-off rate and
reduced MPR:
Current rating: 'AAAsf'; 'AAAsf'; 'Asf', 'BBBsf', 'BBsf'
Increase base case by 25% and decrease by 15%: AAsf; AAsf; Asf;
BBB-sf; BB-sf
Increase base case by 50% and decrease by 25%: A+sf; A+sf; BBBsf;
BBsf; B+sf
Increase base case by 75% and decrease by 35%: BBB+sf; BBB+sf;
BB+sf; B+sf; less than Bsf
Latitude Australia Credit Card Master Trust
Series 2017-1
Rating sensitivity to increased charge-off rate:
Current ratings: 'AAAsf', 'AAAsf', 'AAsf'; 'Asf', 'BBBsf', 'BBsf'
Increase base case by 25%: AAAsf / AA+sf / AA-sf / A-sf / BBBsf /
BBsf
Increase base case by 50%: AAAsf / AAsf / A+sf / BBB+sf / BBB-sf /
BB-sf
Increase base case by 75%: AAAsf / AA-sf / Asf / BBBsf / BB+sf /
B+sf
Rating sensitivity to reduced MPR:
Current ratings: 'AAAsf', 'AAAsf', 'AAsf'; 'Asf', 'BBBsf', 'BBsf'
Decrease base case by 15%: AAAsf / AA+sf / AA-sf / A-sf / BBBsf /
BBsf
Decrease base case by 25%: AAAsf / AAsf / A+sf / BBB+sf / BBB-sf /
BBsf
Decrease base case by 35%: AAAsf / AA-sf / Asf / BBBsf / BB+sf /
BB-sf
Rating sensitivity to reduced yield:
Current ratings: 'AAAsf', 'AAAsf', 'AAsf'; 'Asf', 'BBBsf', 'BBsf'
Decrease base case by 15%: 'AAAsf'; 'AAAsf'; 'AAsf', 'Asf',
'BBBsf', 'BBsf'
Decrease base case by 25%: 'AAAsf'; 'AAAsf'; 'AAsf'; 'Asf',
'BBBsf', 'BB-sf'
Decrease base case by 35%: 'AAAsf'; 'AAAsf'; 'AA-sf'; 'A-sf',
'BBB-sf', 'BB-sf'
Rating sensitivity to combined increase in charge-off rate and
reduced MPR:
Current ratings: 'AAAsf', 'AAAsf', 'AAsf'; 'Asf', 'BBBsf', 'BBsf'
Increase base case by 25% and decrease by 15%: AAAsf; AAsf; A+sf;
BBB+sf; BBB-sf; BB-sf
Increase base case by 50% and decrease by 25%: AA+sf; A+sf; BBB+sf;
BBB-sf; BBsf; Bsf
Increase base case by 75% and decrease by 35%: AA-sf; BBB+sf;
BBB-sf; BBsf; B+sf; less than Bsf
Series 2017-2
Rating sensitivity to increased charge-off rate:
Current ratings: 'AAAsf' / 'AAAsf' /'AAsf' / 'Asf' / 'BBBsf' /
'BBsf'
Increase base case by 25%: AAAsf / AA+sf / AA-sf / A-sf / BBBsf /
BBsf
Increase base case by 50%: AAAsf / AA+sf / A+sf / BBB+sf / BBB-sf /
BB-sf
Increase base case by 75%: AAAsf / AA-sf / Asf / BBBsf / BB+sf /
B+sf
Rating sensitivity to reduced MPR:
Current ratings: 'AAAsf'/ 'AAAsf' / 'AAsf' / 'Asf' / 'BBBsf' /
'BBsf'
Decrease base case by 15%: AAAsf / AA+sf / AA-sf / A-sf / BBBsf /
BBsf
Decrease base case by 25%: AAAsf / AAsf / A+sf / BBB+sf / BBB-sf /
BBsf
Decrease base case by 35%: AAAsf / AA-sf / Asf / BBBsf / BB+sf /
BB-sf
Rating sensitivity to reduced yield:
Current ratings: 'AAAsf', 'AAAsf', 'AAsf'; 'Asf', 'BBBsf', 'BBsf'
Decrease base case by 15%: AAAsf / AAAsf / AAsf / Asf / BBBsf /
BBsf
Decrease base case by 25%: AAAsf / AAAsf / AAsf / Asf / BBBsf /
BB-sf
Decrease base case by 35%: AAAsf / AAAsf / AA-sf / Asf / BBB-sf /
BB-sf
Rating sensitivity to combined increase in charge-off rate and
reduced MPR:
Current ratings: 'AAAsf', 'AAAsf', 'AAsf'; 'Asf', 'BBBsf', 'BBsf'
Increase base case by 25% and decrease by 15%: AAAsf; AAsf; A+sf;
BBB+sf; BBB-sf; BB-sf
Increase base case by 50% and decrease by 25%: AA+sf; A+sf; BBB+sf;
BBB-sf; BBsf; Bsf
Increase base case by 75% and decrease by 35%: AA-sf; BBB+sf;
BBB-sf; BBsf; B+sf; less than Bsf
Series 2018-1
Rating sensitivity to increased charge-off rate:
Current ratings: 'AAAsf'/ 'AAAsf' / 'AAsf'/ 'Asf' / 'BBBsf' /
'BBsf'
Increase base case by 25%: AAAsf / AA+sf / AA-sf / Asf / BBBsf /
BBsf
Increase base case by 50%: AAAsf / AA+sf / A+sf / BBB+sf / BBB-sf /
BB-sf
Increase base case by 75%: AAAsf / AA-sf / Asf / BBBsf / BBBsf /
B+sf
Rating sensitivity to reduced MPR:
Current ratings: 'AAAsf' / 'AAAsf' / 'AAsf' / 'Asf' / 'BBBsf' /
'BBsf'
Decrease base case by 15%: AAAsf / AA+sf / AA-sf / A-sf / BBBsf /
BBsf
Decrease base case by 25%: AAAsf / AAsf / A+sf / BBB+sf / BBB-sf /
BBsf
Decrease base case by 35%: AAAsf / AA-sf / Asf / BBBsf / BB+sf /
BB-sf
Rating sensitivity to reduced yield:
Current ratings: 'AAAsf', 'AAAsf', 'AAsf'; 'Asf', 'BBBsf', 'BBsf'
Decrease base case by 15%: AAAsf / AAAsf / AAsf / Asf / BBBsf /
BBsf
Decrease base case by 25%: AAAsf / AAAsf / AAsf / Asf / BBBsf /
BBsf
Decrease base case by 35%: AAAsf / AAAsf / AAsf / Asf / BBB-sf /
BB-sf
Rating sensitivity to combined increase in charge-off rate and
reduced MPR:
Current ratings: 'AAAsf', 'AAAsf', 'AAsf'; 'Asf', 'BBBsf', 'BBsf'
Increase base case by 25% and decrease by 15%: AAAsf; AAsf; A+sf;
BBB+sf; BBB-sf; BB-sf
Increase base case by 50% and decrease by 25%: AA+sf; A+sf; A-sf;
BBB-sf; BBsf; B+sf
Increase base case by 75% and decrease by 35%: AA-sf; A-sf; BBB-sf;
BBsf; B+sf; less than Bsf
Series 2019-1
Rating sensitivity to increased charge-off rate:
Current ratings: 'AAAsf', 'AAAsf', 'AAsf'; 'Asf', 'BBBsf', 'BBsf'
Increase base case by 25%: AAAsf / AA+sf / AA-sf / Asf / BBBsf /
BBsf
Increase base case by 50%: AAAsf / AA+sf / A+sf / BBB+sf / BBB-sf /
BB-sf
Increase base case by 75%: AAAsf / AA-sf / Asf / BBBsf / BB+sf /
B+sf
Rating sensitivity to reduced MPR:
Current ratings: 'AAAsf', 'AAAsf', 'AAsf'; 'Asf', 'BBBsf', 'BBsf'
Decrease base case by 15%: AAAsf / AA+sf / AA-sf / A-sf / BBBsf /
BBsf
Decrease base case by 25%: AAAsf / AAsf / A+sf / BBB+sf / BBB-sf /
BBsf
Decrease base case by 35%: AAAsf / AA-sf / Asf / BBBsf / BB+sf /
BB-sf
Rating sensitivity to reduced yield:
Current ratings: 'AAAsf', 'AAAsf', 'AAsf'; 'Asf', 'BBBsf', 'BBsf'
Decrease base case by 15%: AAAsf / AAAsf / AAsf / Asf / BBBsf /
BBsf
Decrease base case by 25%: AAAsf / AAAsf / AAsf / Asf / BBBsf /
BBsf
Decrease base case by 35%: AAAsf / AAAsf / AAsf / Asf / BBB-sf /
BB-sf
Rating sensitivity to combined increase in charge-off rate and
reduced MPR:
Current ratings: 'AAAsf', 'AAAsf', 'AAsf'; 'Asf', 'BBBsf', 'BBsf'
Increase base case by 25% and decrease by 15%: AAAsf; AAsf; A+sf;
BBB+sf; BBB-sf; BB-sf
Increase base case by 50% and decrease by 25%: AA+sf; A+sf; A-sf;
BBB-sf; BBsf; B+sf
Increase base case by 75% and decrease by 35%: AA-sf; A-sf; BBB-sf;
BBsf; B+sf; less than Bsf
Series 2017-VFN
Rating sensitivity to increased charge-off rate:
Rating: Asf
Increase base case by 25%: Asf
Increase base case by 50%: A-sf
Increase base case by 75%: BBB+sf
Rating sensitivity to reduced MPR:
Rating: Asf
Decrease base case by 15%: Asf
Decrease base case by 25%: A-sf
Decrease base case by 35%: BBB+sf
Rating sensitivity to reduced yield:
Rating: Asf
Decrease base case by 15%: Asf
Decrease base case by 25%: Asf
Decrease base case by 35%: Asf
Rating sensitivity to combined increase in charge-off rate and
reduced MPR:
Rating: Asf
Increase base case by 25% and decrease by 15%: A-sf
Increase base case by 50% and decrease by 25%: BBBsf
Increase base case by 75% and decrease by 35%:BB+sf
New Zealand Sales Finance and Credit Cards Trust
Rating sensitivity to increased charge-off rate:
Current ratings: 'AAAsf'; 'AAsf'; 'Asf', 'BBBsf', 'BBsf'
Increase base case by 25%: 'AAAsf'; 'AAsf'; 'Asf', 'BBBsf';
'BB+sf'
Increase base case by 50%: 'AA+sf'; 'A+sf'; 'A-sf', 'BBB-sf';
'BBsf'
Increase base case by 75%: 'AAsf'; 'Asf'; 'BBB+sf', 'BBB-sf';
'BB-sf'
Rating sensitivity to reduced MPR:
Current ratings: 'AAAsf'; 'AAsf'; 'Asf', 'BBBsf'; 'BBsf'
Decrease base case by 15%: 'AA+sf'; 'AA-sf'; 'Asf', 'BBBsf';
'BB+sf'
Decrease base case by 25%: 'AA+sf'; 'A+sf'; 'BBB+sf', 'BBB-sf';
'BBsf'
Decrease base case by 35%: 'AA-sf'; 'A-sf'; 'BBBsf', 'BB+sf';
'BB-sf'
Rating sensitivity to reduced yield:
Current rating: 'AAAsf'; 'AAsf'; 'Asf', 'BBBsf', 'BBsf'
Decrease base case by 15%: 'AAAsf'; 'AAsf'; 'A+sf', 'BBB+sf',
'BB+sf'
Decrease base case by 25%: 'AAAsf'; 'AAsf'; 'Asf', 'BBBsf', 'BBsf'
Decrease base case by 35%: 'AAAsf'; 'AAsf'; 'Asf', 'BBBsf', 'BBsf'
Rating sensitivity to combined increase in charge-off rate and
reduced MPR:
Current ratings: 'AAAsf', 'AAsf', 'Asf', 'BBBsf', 'BBsf'
Increase base case by 25% and decrease by 15%: AA+sf; A+sf; BBB+sf;
BBB-sf; BBsf
Increase base case by 50% and decrease by 25%: A+sf; A-sf; BBBsf;
BBsf; B+sf
Increase base case by 75% and decrease by 35%: A-sf; BBBsf; BB+sf;
BB-sf; Bsf
Latitude New Zealand Credit Card Master Trust
Series 2018-1
Rating sensitivity to increased charge-off rate:
Current Ratings: AAAsf / AAsf / Asf / BBBsf / BBsf
Increase base case by 25%: AA+sf / AA-sf / Asf / BBBsf / BB+sf
Increase base case by 50%: AA+sf / A+sf / A-sf / BBB-sf / BBsf
Increase base case by 75%: AAsf / Asf / BBB+sf / BBB-sf / BB-sf
Rating sensitivity to reduced MPR:
Rating: AAAsf / AAsf / Asf / BBBsf / BBsf
Decrease base case by 15%: AA+sf / AA-sf / A-sf / BBBsf / BB+sf
Decrease base case by 25%: AAsf / A+sf / BBB+sf / BBB-sf / BBsf
Decrease base case by 35%: A+sf / A-sf / BBBsf / BB+sf / BBsf
Rating sensitivity to reduced yield:
Rating: AAAsf / AAsf / Asf / BBBsf / BBsf
Decrease base case by 15%: AAAsf / AAsf / Asf / BBB+sf / BB+sf
Decrease base case by 25%: AAAsf / AAsf / Asf / BBBsf / BBsf
Decrease base case by 35%: AA+sf / AAsf / Asf / BBBsf / BBsf
Rating sensitivity to combined increase in charge-off rate and
reduced MPR:
Current ratings: 'AAAsf', 'AAsf', 'Asf', 'BBBsf', 'BBsf'
Increase base case by 25% and decrease by 15%: AAsf; A+sf; BBB+sf;
BBB-sf; BBsf
Increase base case by 50% and decrease by 25%: A+sf; BBB+sf;
BBB-sf; BB+sf; B+sf
Increase base case by 75% and decrease by 35%: BBB+sf; BBBsf;
BB+sf; BB-sf; Bsf
2018-VFN note:
Rating sensitivity to increased charge-off rate:
Rating: BBBsf
Increase base case by 25%: BBBsf
Increase base case by 50%: BBB-sf
Increase base case by 75%: BB+sf
Rating sensitivity to reduced MPR:
Rating: BBBsf
Decrease base case by 15%: BBBsf
Decrease base case by 25%: BBB-sf
Decrease base case by 35%: BB+sf
Rating sensitivity to reduced yield:
Rating: BBBsf
Decrease base case by 15%: BBBsf
Decrease base case by 25%: BBBsf
Decrease base case by 35%: BBB-sf
Rating sensitivity to combined increase in charge-off rate and
reduced MPR:
Current ratings: 'BBBsf'
Increase base case by 25% and decrease by 15%: BBB-sf
Increase base case by 50% and decrease by 25%: BBsf
Increase base case by 75% and decrease by 35%: BB-sf
BEAUMARIS HOME: First Creditors' Meeting Set for Jan. 28
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Beaumaris
Home Services Pty Ltd will be held on Jan. 28, 2020, at 2:30 p.m.
at the offices of Worrells Solvency & Forensic Accountants, Level
15, at 114 William Street, in Melbourne, Victoria.
Matthew Kucianski of Worrells Solvency & Forensic Accountants was
appointed as administrator of Beaumaris Home on Jan. 16, 2020.
CELTIC PACIFIC: First Creditors' Meeting Set for Jan. 28
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Celtic
Pacific Properties Pty Limited will be held on Jan. 28, 2020, at
12:00 p.m. at Gladstone City Library Meeting Room, at 39 Goondoon
Street, in Gladstone, Queensland.
Andrew McCabe -- amccabe@wexted.com -- and Joseph Hayes --
jhayes@wexted.com.au -- of Wexted Advisors were appointed as
administrators of Celtic Pacific on Jan. 17, 2020.
GLADSTONE UNITED: First Creditors' Meeting Set for Jan. 28
----------------------------------------------------------
A first meeting of the creditors in the proceedings of Gladstone
United Pty Limited will be held on Jan. 28, 2020, at 11:40 a.m. at
the offices of Gladstone City Library Meeting Room, at 39 Goondoon
Street, in Gladstone, Queensland.
Andrew McCabe -- amccabe@wexted.com -- and Joseph Hayes --
jhayes@wexted.com.au -- of Wexted Advisors were appointed as
administrators of Gladstone United on Jan. 17, 2020.
KELA CHARMS: First Creditors' Meeting Set for Jan. 28
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Kela Charms
Pty Ltd and Kela Holdings Pty Ltd will be held on Jan. 28, 2020, at
4:00 p.m. at the offices of BPS Recovery, Level 18, at 201 Kent
Street, in Sydney, NSW.
David Anthony Hurst and David Henry Sampson of BPS Recovery were
appointed as administrators of Kela Charms on Jan. 16, 2020.
STEP CHANGE: First Creditors' Meeting Set for Jan. 29
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Step Change
Communications Pty Ltd will be held on Jan. 29, 2020, at 11:00 a.m.
at Level 2, at 151 Macquarie Street, in Sydney, NSW.
Mark Robinson and Riad Tayeh of de Vries Tayeh were appointed as
administrators of Step Change on Jan. 16, 2020.
=========
C H I N A
=========
CHINA EVERGRANDE: Moody's Rates New USD Sr. Unsec. Notes B2
------------------------------------------------------------
Moody's Investors Service assigned B2 senior unsecured ratings to
the USD notes to be issued by China Evergrande Group (B1 stable).
Evergrande plans to use the proceeds from the proposed notes to
refinance existing debts and for general corporate purposes.
RATINGS RATIONALE
"The proposed bond issuance will provide Evergrande with additional
liquidity and lengthen its debt maturity profile, with limited
impact on its credit metrics as it will use the proceeds mainly to
refinance maturing debt," says Josephine Ho, a Moody's Vice
President and Senior Analyst.
Evergrande's B1 corporate family rating reflects the company's
strong market position as one of the top three property developers
in China (A1 stable) in terms of contracted sales and size of its
land bank. In addition, the rating reflects Evergrande's nationwide
geographic coverage, strong sales execution, and low-cost land
bank.
However, Evergrande's rating is constrained by the company's weak
liquidity and high debt leverage. The company's high risk appetite
in expanding its non-property businesses also constrains its
liquidity profile.
Moody's expects that the company's leverage, as measured by
revenue/adjusted debt, will continue to improve to 50%-60% over the
next 12-18 months from around 39% for the 12 months ended June 30,
2019, primarily driven by slower debt growth from controlled land
acquisitions.
Moody's expects Evergrande will spend around 25% of the contracted
sales proceeds on land acquisitions in 2020.
Moody's has included the RMB130 billion in investments from
Evergrande's strategic investors in its calculation of the
company's adjusted debt, while the company has treated the funds as
equity in accordance with Hong Kong accounting standards.
Meanwhile, Evergrande's EBIT/interest coverage will likely improve
to 2.6x-2.8x in the next 12-18 months from 2.1x for the 12 months
ended June 2019.
Moody's expects Evergrande's contracted sales, including those of
joint ventures and associates, will grow moderately to around
RMB625-650 billion in 2020, after registering 9% year-over-year
growth to RMB601 billion in 2019. These contracted sales will in
turn support future revenue recognition.
In addition, Moody's expects Evergrande to maintain its gross
margin around 30%-35% over the next 12-18 months, supported by its
low-cost land bank, and providing it with ample buffer in case of
price declines in China's property market.
Evergrande's liquidity is weak, as cash/short-term debt stood at
0.8x at the end of June 2019. However, Moody's believes that the
risk is mitigated by the company's track record of accessing
diversified funding channels, including the bank and capital
markets for debt refinancing. The extension of the reorganization
and listing timeline from January 31, 2020 to January 31, 2021,
agreed with first round and second round strategic investors and
announced on January 13, 2020, also improved the company's
immediate liquidity, because RMB70 billion in conditional repayment
obligations have been postponed for another 12 months.
In terms of governance considerations, Moody's has considered the
concentrated ownership by Evergrande's key shareholders, Mr. Hui
Ka-Yan and his wife, who held a total 77% stake in the company at
June 30, 2019. This risk is partially mitigated by Evergrande's
established internal governance structures and standards as
required under the Corporate Governance Code for companies listed
on the Hong Kong Stock Exchange. The board has three independent
non-executive directors out of a total nine board of directors.
Moody's has also considered the risk related to new energy vehicle
(NEV) investments. Given that Evergrande's NEV business is at a
nascent stage, it is unlikely to be profitable over the next 12-18
months and will incur additional capital expenditure.
The stable outlook reflects Moody's expectation that Evergrande
will deleverage and be able to refinance its debt over the next
12-18 months.
Moody's could upgrade the ratings if (1) Evergrande demonstrates
improved discipline in its business growth and acquisitions; (2)
its liquidity position improves so that it can meet its refinancing
needs and cover land acquisition costs; and (3) its credit metrics
improve.
Financial indicators of a potential upgrade include (1) cash/short
term debt exceeding 1.00x-1.25x; (2) revenue/adjusted debt
exceeding 70%-75%; and (3) EBIT/interest exceeding 2.5x-3.0x, all
on a sustainable basis.
On the other hand, Moody's could downgrade the ratings if (1)
Evergrande embarks on aggressive acquisitions and a high-growth
strategy; (2) it fails to deleverage; (3) liquidity weakens; or (4)
there is a material reduction in the ownership of its subsidiaries,
including Hengda Real Estate Group Company Limited (B1 stable).
Financial indicators of a potential downgrade include (1)
cash/short term debt below 1.0x; (2) revenue/adjusted debt below
50%; and (3) EBIT/interest below 2.0x on a sustained basis.
The principal methodology used in this rating was Homebuilding And
Property Development Industry published in January 2018.
China Evergrande Group is among the top three residential
developers in China by sales volume, with a standardized operating
model. Founded in 1996 in Guangzhou, the company has rapidly
expanded its business across the country over the past few years.
KANGDE XIN: Minsheng Bank Takes Stake for Debt Swap
---------------------------------------------------
Wang Juanjuan and Han Wei at Caixin Global report that China
Minsheng Bank took a 2.65% stake in debt-ridden Kangde Xin
Composite Material Group through an investment vehicle in hopes of
recouping some losses from its bond holdings in the serial
defaulter.
Caixin relates that Kangde Xin said a Minsheng Bank-backed
investment firm - Jinsheng Weihai Equity Investment Partnership -
purchased 93.85 million of its shares in a recent legal auction,
becoming the company's third-largest shareholder. Kangde Xin
remains controlled by Kangde Group with 20.75%.
Information from a public auction site run by JD.com showed that
the Jinsheng Weilai acquired CNY330 million of Kangde Xin's pledged
shares from three of the company's creditors -- Zhongtai Trust,
Zhongyuan Trust and Soochow Securities Co. Business records showed
that the three companies invested in Kangde Xin's debts on behalf
of Minsheng Bank, Caixin discloses.
The stake buyer Jinsheng Weilai is also an investment vehicle
controlled by Minsheng Bank, Caixin notes citing business
registration record. Minsheng Bank is one of the biggest creditors
of Kangde Xin, holding CNY6 billion of unpaid debts of the company
and affiliates.
"It is a normal operation for Minsheng Bank to dispose of bad
assets as there is no other way" to recoup the assets, said a
person close to the bank, Caixin relays. The deal has nothing to do
with Kangde Xin's debt restructuring plan, added the person,
speaking on condition of anonymity.
As reported in the Troubled Company Reporter-Asia Pacific on Aug.
8, 2019, Caixin Global said Kangde Xin rattled China's bond market
with several bond defaults last year even though its financial
statements showed it had CNY15 billion in cash and bank deposits
late in 2018. On Feb. 15, 2019, Kangde Xin missed a CNY55 million
(US$8.2 million) interest payment on a CNY1 billion five-year note
after defaulting on two short-term debt instruments totaling CNY1.5
billion in January. In March 2019, the company failed to pay $9
million of interest on a $300 million bond.
The top securities regulator opened an investigation into Kangde
Xin and found the company overstated profits for the four years
through 2018 by a total of CNY11.9 billion, Caixin disclosed citing
a statement of the China Securities Regulatory Commission in July.
Caixin added that the CSRC also found the parent company had
embezzled as much as CNY53.1 billion in Kangde Xin's funds from
2014 to 2018 through its accounts at Bank of Beijing Co. Ltd.
Earlier in May 2019, Kangde Xin's former chairman and controlling
shareholder Zhong Yu was put under "criminal coercive measures" by
police in the eastern city of Zhangjiagang, where Kangde Xin is
based, Caixin recounted.
Based on market records, Caixin calculated that Kangde Xin raised
more than CNY8.8 billion since 2014 through bond sales and private
placements. Its bond underwriters include major banks such as Bank
of Beijing, Bank of China, China Construction Bank and the
Industrial and Commercial Bank of China.
China Kangde Xin Composite Material Group Co., Ltd. --
http://www.kangdexin.com/-- engages in laminating film and
photoelectric materials, 3D, and Internet applications businesses
worldwide. It offers printing substrates, environmental laminating
films, 3D grating materials, 3D imaging technology, automatic
coating equipment, and electronic display equipment under the
Kangde Film and KDX brand names for the printing and packaging, and
decoration markets.
RUGAO ECONOMIC: Fitch Assigns BB Rating to New USD Sr. Unsec. Bonds
-------------------------------------------------------------------
Fitch Ratings assigned a rating of 'BB' to China-based Rugao
Economic and Trade Development Company's (BB/Stable) proposed US
dollar senior unsecured bonds.
KEY RATING DRIVERS
The bonds will be issued directly by state-owned RETDC and will
constitute the company's direct, unconditional, unsubordinated and
unsecured obligations and will rank pari passu with its other
present and future unsecured and unsubordinated obligations. The
proceeds will be used for business development within China and
debt repayment.
RATING SENSITIVITIES
Any change in RETDC's Issuer Default Rating will result in a
similar change in the rating of the proposed bonds.
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
=========
ABHINAV INDUSTRIES: CRISIL Reaffirms B+ Rating on INR4cr Loan
-------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' ratings on
the bank facilities of Abhinav Industries - Bhatapara (AI).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 10 CRISIL A4 (Reaffirmed)
Cash Credit 4 CRISIL B+/Stable (Reaffirmed)
Rupee Term Loan 0.28 CRISIL B+/Stable (Reaffirmed)
The ratings continue to reflect a weak financial risk profile, and
a modest scale of operations amid intense competition. These
weaknesses are partially offset by the extensive experience of the
proprietor in the rice industry.
Analytical Approach
Unsecured loans (outstanding at INR3.99 crore as on March 31,
2019), extended by the proprietor, are treated as neither debt nor
equity as they are expected to remain in the business over the
medium term.
Key Rating Drivers & Detailed Description
Weaknesses:
* Below-average financial risk profile: The networth was small and
the gearing high, at INR1.82 crore and 2.33 times, respectively, as
on March 31, 2019. Net cash accrual to adjusted debt and interest
coverage ratios were below average, at 0.11 time and 1.60 times,
respectively, for fiscal 2019.
* Modest scale of operations amid intense competition: Revenue was
modest at INR15.4 crore in fiscal 2019. Intense competition from
several unorganised players in the rice milling industry limits
pricing flexibility and bargaining power. Threat from large
integrated players through capacity additions further restricts
opportunities for growth.
Strength:
* Extensive industry experience of the proprietor: The decade-long
experience of the proprietor in the rice industry, and his
established relationships with key suppliers and customers will
continue to support the business risk profile.
Liquidity Stretched
Bank limit utilisation was high, averaging 94% during the 12 months
through November 2019. Cash accrual is expected at INR0.40-0.50
crore, sufficient to cover maturing debt of INR0.11 crore, per
fiscal over the medium term. Unsecured loans extended by the
proprietor continue to support liquidity.
Outlook: Stable
CRISIL believes AI will continue to benefit from the extensive
industry experience of the proprietor.
Rating sensitivity factors:
Upward factors
* Sustained improvement in revenue by 20% per fiscal and in
profitability
* Improvement in working capital cycle
Downward factors
* Decline in revenue by 15% per fiscal and in profitability
* Stretch in the working capital cycle.
AI was set up in 2005 as a proprietorship firm by Mr Ashwani Kumar
Sharma. The entity mills and processes rice at its plant at
Bhatapara, Chhattisgarh, with an installed capacity of 240 tonne
per day.
B. B. PRODUCTS: CRISIL Lowers Rating on INR6cr Term Loan to D
-------------------------------------------------------------
CRISIL has downgraded the rating on the long-term bank facility of
B. B. Products (BBP) to 'CRISIL D; Issuer not cooperating' from
'CRISIL B/Stable; Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 6 CRISIL D (Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with BBP for obtaining
information through letters and emails dated February 28, 2019,
April 8, 2019 and April 12, 2019, among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
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 they are arrived at without any management
interaction and are based on best available or limited or dated
information on the entity.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL has
not received any information on either the financial performance or
strategic intent of the firm. This restricts CRISIL's ability to
take a forward looking view on the entity's credit quality. CRISIL
believes information available on BBP is consistent with 'Scenario
1' outlined in the 'Framework for Assessing Consistency of
Information with 'CRISIL BB' rating category or lower'.
Due to delay in meeting term debt obligations by BBP, CRISIL has
downgraded the rating on the long-term bank facility of the firm to
'CRISIL D; Issuer not cooperating' from 'CRISIL B/Stable; Issuer
not cooperating'.
BBP was set up in 2016 by Gujarat-based Mr Praful Bhimani, Mr
Hardik Desai, and their family members. The firm provides cold
storage facilities across Navsari. It commenced operations in
December 2017.
BAWA APPLIANCES: CRISIL Cuts INR5cr Loan Rating to D, Not Coop.
---------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of Bawa
Appliances Private Limited (BAPL) to 'CRISIL D/CRISIL D Issuer Not
Cooperating' from 'CRISIL C/CRISIL A4 Issuer Not Cooperating' as
account has been classified as NPA.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL D (ISSUER NOT COOPERATING;
Downgraded from 'CRISIL C ISSUER
NOT COOPERATING')
Letter of Credit 3.59 CRISIL D (ISSUER NOT COOPERATING;
Downgraded from 'CRISIL A4 ISSUER
NOT COOPERATING')
Term Loan 1.41 CRISIL D (ISSUER NOT COOPERATING;
Downgraded from 'CRISIL C ISSUER
NOT COOPERATING')
CRISIL has been consistently following up with BAPL for obtaining
information through letters and emails dated July 31, 2018 and
January 15, 2019, October 15, 2019 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company'.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of BAPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on BAPL, is
consistent with 'Scenario 1' outlined in the best 'Framework for
Assessing Consistency of Information with 'CRISIL BB' category or
lower'.
Based on best available information, CRISIL has downgraded the
rating to 'CRISIL D/CRISIL D Issuer Not Cooperating' from 'CRISIL
C/CRISIL A4 Issuer Not Cooperating' as account has been classified
as NPA.
Incorporated in 2012, and promoted by the New Delhi-based Mr.
Sanjeev Kapoor, BAPL manufactures Liquefied petroleum gas (LPG)
stoves and related components, and other kitchen utensils and also
trades in steel sheets.
BHUMYA TEA: CRISIL Cuts Rating on INR28.92cr Cash Loan to 'D'
-------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Bhumya
Tea Company Private Limited (BTCPL) to 'CRISIL D Issuer Not
Cooperating' from 'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 28.92 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Term Loan 14.29 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with BTCPL for obtaining
information through emails and letters dated
September 7, 2018, and October 30, 2018, August 31, 2019 among
others, apart from telephonic communication. However, the issuer
has remained non-cooperative.
'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 and are arrived at without any
interaction with the management. In addition, they are based on
best available, limited, or dated information regarding 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 BTCPL. This restricts CRISIL's
ability to take a forward-looking view on the entity's credit
quality. CRISIL believes information available on BTCPL is
consistent with 'Scenario 1' outlined in the 'framework for
assessing consistency of information with CRISIL BB rating category
or lower'.
Due to delay in timely servicing of debt, CRISIL has downgraded its
ratings on the bank facilities of BTCPL to 'CRISIL D Issuer Not
Cooperating' from 'CRISIL B+/Stable Issuer Not Cooperating'.
BTCPL was set up as a proprietorship concern and was reconstituted
as a private limited company after it was taken over by Mr Sanjay
Prakash Bansal in 2003. The company plants and processes organic
Assam tea. Its tea estate, Jamguri Tea Estates, is in Golaghat,
Assam. It also manufactures conventional tea by purchasing leaves
from other tea estates.
CPR LABORATORIES: CRISIL Cuts Rating on INR5.54cr Loan to 'D'
-------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of CPR Laboratories Private Limited (CPR) to 'CRISIL D Issuer Not
Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit .9 CRISIL D (Downgraded from
'CRISIL B/Stable; ISSUER NOT
COOPERATING')
Proposed Long Term 5.54 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL B/Stable; ISSUER NOT
COOPERATING')
Term Loan 3.56 CRISIL D (Downgraded from
'CRISIL B/Stable; ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with CPR for obtaining
information through letters and emails dated December 31, 2019
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'. This rating lacks a
forward-looking component as it has been 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 CPR, which restricts CRISIL's
ability to take a forward-looking view on the entity's credit
quality. CRISIL believes information available on CPR 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 there has been overdrawals
for more than 30 days in overdraft account and also delay in term
loan payment, CRISIL has downgraded its rating on the long-term
bank facilities of CPR to 'CRISIL D Issuer Not Cooperating' from
'CRISIL B/Stable Issuer Not Cooperating'.
Incorporated in March 2016 and promoted by Mr Dalai Ravi Kumar, Mr
Dalai Vijay Kumar, Ms Bangaru Srilaxmi, and Ms Dalai Saraswathi,
CPR is a setting up an API plant in Visakhapatnam.
HAPPY HOME: CRISIL Lowers Rating on INR75cr Term Loan to 'D'
------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facility of Happy
Home Developers (HHD) to 'CRISIL D/CRISIL D; issuer not
cooperating' from 'CRISIL BB/Stable; issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 75 CRISIL D (Downgraded from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with HHD for obtaining
information through letters and emails dated July 8, 2019, and July
12, 2019, among others, apart from telephonic communication.
However, the issuer has remained non-cooperative.
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 they are arrived at without any
interaction with the management and are based on the best
available, limited, or dated information regarding 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 HHD; this restricts CRISIL's
ability to take a forward-looking view on the entity's credit
quality. CRISIL believes information available on HHD is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB rating category or
lower'.
Due to delay in term debt servicing, CRISIL has downgraded the
ratings to 'CRISIL D/CRISIL D; issuer not cooperating' from 'CRISIL
BB/Stable; issuer not cooperating'.
Established in 2014, HHD undertakes residential real estate
projects. It belongs to the Happy Home Group in Surat and is
managed by Mr Mahesh Vithani and Mr Sanjay Sorathia.
ISWARYA ENTERPRISES: CRISIL Cuts Rating on INR9cr Loan to 'D'
-------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Iswarya Enterprises (IE) to 'CRISIL D Issuer Not Cooperating'
from 'CRISIL B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft 9 CRISIL D (ISSUER NOT COOPERATING;
Downgraded from 'CRISIL B/Stable
ISSUER NOT COOPERATING')
CRISIL has been consistently following up with IE for obtaining
information through letters and emails dated January 23, 2019, and
July 11, 2019, 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'. This rating lacks a
forward-looking component as it has been 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 IE, which restricts CRISIL's
ability to take a forward-looking view on the entity's credit
quality. CRISIL believes information available on IE 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 there has been overdrawals
for more than 30 days in overdraft account, CRISIL has downgraded
its rating on the long-term bank facilities of IE to 'CRISIL D
Issuer Not Cooperating' from 'CRISIL B/Stable Issuer Not
Cooperating'.
Formed in 2004 as a partnership firm, IE is engaged in processing
of groundnut kernels. The firm is based out of Nallacheruvu, Andhra
Pradesh and is promoted by Mr. Ramanath.
JINDAL INDIA: Deutsche Bank-Led Group Makes Sole Bid for Debt
-------------------------------------------------------------
Bloomberg reports that a Deutsche Bank-led consortium's efforts to
buy out the debt of a power plant operator in eastern India has
advanced, after no rival bidder emerged.
Bloomberg says the struggling utility is Jindal India Thermal Power
Ltd., one of a string of power plants being put up for sale by
banks stuck with their defaulting debt.
According to Bloomberg, the sector has been hit hard by oversupply
in recent years, a consequence of a costly push to bridge India's
once chronic power deficit and expand reach to under-supplied rural
areas. Power generators form a significant chunk of India's $130
billion bad loan pile.
Bloomberg relates that the consortium offered INR24 billion ($339
million) in cash to settle the company's INR76 billion debt
including interest due as of end March, which is currently being
restructured, said the people, asking not to be identified citing
confidentiality. The unsolicited offer was opened up to competing
bids in an auction but no rival emerged by the deadline last week,
the people, as cited by Bloomberg, said.
The offer would effectively mean that creditors, led by Punjab
National Bank, would recover a fraction of their outstanding debt
holdings, the people said, Bloomberg relays. Typically, if lenders
do not agree with a debt-recast plan, they have the option of
taking the company to bankruptcy.
Jindal India Thermal Power Ltd (JITPL) is promoted by Jindal Poly
Films Ltd (JPFL) and Jindal Photo Limited (JPL) through Jindal
India Powertech Ltd (JIPL, a holding company wholly owned by JPFL
and JPL). JIPL holds 85.81% stake in JITPL whereas the balance
shares are held by B.C. Jindal group entities, employees,
associates and others. JITPL was originally incorporated as Indian
Zinc Ltd on January 5, 2001 and subsequently the name of the
company was changed to its present name effective from March 23,
2006. It has implemented 1,200 MW green field thermal power plant
(as 2 units of 600 MW each) at district Angul in Odisha. The
project entails a total estimated cost of INR7, 537 crore (revised
from INR6, 510 crore) being funded through a debt (including
subordinate debt and unsecured loans) of INR5,900 crore and the
promoter's contribution of INR1,637 crore. Both the units are now
operational.
MANN MEDICITI: CRISIL Cuts Rating on INR6.0cr Loans to 'D'
----------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Mann Mediciti Wellness Centre Private Limited (MMWC) to 'CRISIL
D Issuer Not Cooperating' from 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.8 CRISIL D (ISSUER NOT COOPERATING;
Downgraded from 'CRISIL B+/Stable
ISSUER NOT COOPERATING')
Proposed Working .2 CRISIL D (ISSUER NOT COOPERATING;
Capital Facility Downgraded from 'CRISIL B+/Stable
ISSUER NOT COOPERATING')
CRISIL has been consistently following up with MMWC for obtaining
information through letters and emails dated September 24, 2019,
and October 14, 2019, 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'. This rating lacks a
forward-looking component as it has been 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 MMWC, which restricts CRISIL's
ability to take a forward-looking view on the entity's credit
quality. CRISIL believes information available on MMWC is
consistent with 'Scenario 2' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BBB' rating
category or lower'.
Based on the last available information that MMWC has been delaying
the repayment of the term loan it availed of, CRISIL has downgraded
its rating on the long-term bank facilities of MMWC to 'CRISIL D
Issuer Not Cooperating' from 'CRISIL B+/Stable Issuer Not
Cooperating'.
MMWC, incorporated in 2009 by Dr Jasbir Singh Mann, operates a
multi-specialty hospital in Jalandar, Punjab. The hospital is
empanelled with Ex-servicemen Contributory Health Scheme, Employee
State Insurance Scheme, and the Food Corporation of India.
RATNAGIRI SEEDS: CRISIL Reaffirms B+ Rating on INR3cr Cash Loan
---------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' ratings on
the bank facilities of Ratnagiri Seeds and Farm (RSF).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 5 CRISIL A4 (Reaffirmed)
Cash Credit 2 CRISIL B+/Stable (Reaffirmed)
Proposed Fund-
Based Bank Limits 3 CRISIL B+/Stable (Reaffirmed)
The ratings continue to reflect the firm's modest scale of
operations, average financial risk profile because of small
networth and weak gearing, exposure to intense competition, and
large working capital requirement. These weaknesses are partially
offset by the extensive experience of its proprietor and strong
client base.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations and average financial risk profile:
With an operating income of INR11.99 crore in fiscal 2019, scale
remains small. Also, networth was subdued at INR1.73 crore as on
March 31, 2019, while gearing remained weak at 2.54 times (2.57
times in the previous fiscal). Interest coverage ratio was muted at
1.40 times for fiscal 2019.
* Exposure to intense competition: The genetic seeds industry is
highly fragmented with many unorganised players. This limits
pricing and bargaining power.
* Working capital-intensive operations with stretched liquidity:
Gross current assets were 226 days as on March 31, 2019 (198 days
in the previous fiscal), on account of large inventory of 82 days.
This is because the firm deals in paddy, wheat, and lentils seeds
that are seasonal.
Strengths:
* Extensive experience of the proprietor: Benefits from the
proprietor's experience of around a decade and healthy client
relationship will continue to support business.
Liquidity Stretched
Cash accrual is expected at INR18 lakh and INR21 lakh in fiscals
2020 and 2021, respectively, against nil term debt obligation.
Utilisation of fund-based bank limit of INR2 crore was full as on
date. Current ratio was 1.14 times as on March 31, 2019.
Outlook: Stable
CRISIL believes RSF will continue to benefit from its proprietor's
extensive experience.
Rating sensitivity factors:
Upward factors
* Improvement in scale of operations and sustenance of operating
margin, leading to cash accrual of above INR20 lakh
* Better working capital cycle improving financial risk profile,
especially liquidity
Downward factors
* Decline in scale of operations leading to fall in revenue or
operating margins below 8%, resulting in lower cash accrual
* Substantial increase in working capital requirement weakening
financial risk profile, especially liquidity.
Established in 2008 in Bihar as a proprietorship firm by Mr Neeraj
Chaubey, RSF processes genetic seeds with installed capacity of 8
tonne per hour.
SABER PAPER: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Saber Paper Boards Private Limited
VPO-Jugiana
G T Road
Ludhiana
Punjab 141001
Insolvency Commencement Date: January 7, 2020
Court: National Company Law Tribunal, Chandigarh Bench
Estimated date of closure of
insolvency resolution process: July 5, 2020
(180 days from commencement)
Insolvency professional: Mr. Vikram Bajaj
Interim Resolution
Professional: Mr. Vikram Bajaj
308, 3rd Floor
Pearl Business Park
Netaji Subhash Place
Pitampura, Delhi 110034
E-mail: bajaj.vikram@gmail.com
ip.saberpaperboards@gmail.com
Last date for
submission of claims: January 21, 2020
SANDHYA DEVELOPMENT: CRISIL Assigns B+ Rating to INR8cr Loans
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Sandhya Development Society (SDS).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft 5 CRISIL B+/Stable (Assigned)
Proposed Long Term
Bank Loan Facility 3 CRISIL B+/Stable (Assigned)
The rating reflects the society's weak capital position and
exposure to risks inherent in co-operative societies and the
microfinance sector. These weaknesses are partially offset by a
long track record in operating geographies and stable asset
quality.
Analytical Approach
For arriving at the rating, CRISIL has considered standalone
business and financial risk profile of SDS.
Key Rating Drivers & Detailed Description
Weaknesses
* Weak capital position
Capital position is subdued on account of the society's inherent
limitations. Hence, networth was small (INR2.83 crore as on March
31, 2019) compared to scale of operations. Against this, advances
were INR80 crore and gearing highly leveraged at 13 times. Also,
with low internal accrual, any material decline in asset quality
will put significant pressure on capitalisation.
* Exposure to risk inherent in co-operative societies and the
microfinance sector
Co-operative societies do not fall under the ambit of the Reserve
Bank of India (RBI) and are, therefore, not subject to prudential
norms; unlike other deposit-raising entities such as banks and
non-banking finance companies. If RBI brings such cooperative
institutions under its ambit, the societies could be subject to
stricter prudential norms on capital adequacy, asset
classification, and income recognition. However, the sector remains
vulnerable to risk of regional political events.
Moreover, the microfinance sector has witnessed two major
disruptive events in its life cycle of around 15 years. The first
one was the Andhra crisis in 2010 and the second was demonetisation
in 2016. In addition, the sector has faced issues in several
geographies of varying intensity. Promulgation of the ordinance on
microfinance institutions (MFIs) by the Government of Andhra
Pradesh in 2010 demonstrated their vulnerability to regulatory and
legislative risks. The ordinance triggered a chain of events that
adversely affected the business models of MFIs by impairing their
growth, asset quality, profitability, and solvency. Similarly, the
sector witnessed high level of delinquencies post-demonetisation
and subsequent socio political events. This indicates the fragility
of the business model vis-a-vis external risks. Since business
involves lending to the poor and downtrodden sections of the
society, MFIs will remain exposed to socially sensitive factors,
including charging high interest rates and, consequently, to
tighter regulations and legislation.
Strengths
* Long track record of operations
Despite starting microfinance operations in 1996, scale remained
small, with a loan portfolio of INR80 crore as on March 31, 2019,
though it grew 31% from INR61.4 crore as on March 31, 2018. Being
in the operating geographies for more than 2 decades, SDS has
linkages with Canara Bank and Nabard Financial Services Ltd for
managed portfolio, which forms around 33% of total loan portfolio,
It also manufactures household articles (kitchen and agricultural
utensils) and other agricultural products, and distributes these
through own vehicles to all the branches. The society's yearly sale
was INR25.6 crore at gross profit of INR4.4 crore for fiscal 2019.
* Stable asset quality
Asset quality is good as reflected in gross non-performing assets
(GNPA) of 0.44% as on March 31, 2019. Asset quality is supported by
the inherent strengths of self-help groups (SHGs). Since few of the
members work with the society's manufacturing unit, it becomes
easier to recover dues. SDS provides SHG loans only to working
women. However, ability to maintain this with increase in scale
will remain a key monitorable.
Liquidity Stretched
Cash and cash equivalents stood at a modest INR4.5 crore as on
March 31, 2019. However, deposits of INR52 crore from members
partially support liquidity.
Outlook: Stable
CRISIL believes SDS will continue to benefit from its long track
record, and stable asset quality over the medium term. The outlook
may be revised to 'Positive' if capitalisation improves
significantly. The outlook may be revised to 'Negative' if
profitability, asset quality, or liquidity declines significantly.
Rating sensitivity factors
Upward factors
*Improvement in capital position with gearing below 7 times
*Improvement in earning profile
Downward factors
*Weakening of asset quality with GNPA more than 2-3%
*Changes in the regulatory environment.
SDS is registered under the Travancore Cochin Literary Scientific
and Charitable Societies Registration Act, 1955, to support women
under SHGs. It manufactures household articles and agricultural
products. The society has around 99 branches that operate both as
shops and as outlets for its lending business. These branches are
spread across Kerala's Kottayam, Ernakulam, Idukki, and
Pathanamthitta districts. SDS has around 5,821 groups with 50,000
members, managed by 400 employees and 11 loan officers.
SRINIVAS INFRASTRUCTURE: Ind-Ra Moves BB+ Rating to NonCooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Srinivas
Infrastructure Private Limited's Long-Term Issuer Rating to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will now
appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR70 mil. Fund-based facilities migrated to non-cooperating
category with IND BB+ (ISSUER NOT COOPERATING) rating;
-- INR100 mil. Non-fund-based facilities migrated to non-
cooperating category with IND A4+ (ISSUER NOT COOPERATING)
rating;
-- INR30 mil. Proposed fund-based facilities migrated to non-
cooperating category with Provisional IND BB+ (ISSUER NOT
COOPERATING) rating; and
-- INR100 mil. Proposed non-fund-based facilities migrated to
non-cooperating category with Provisional IND A4+ (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 7, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 1995, Srinivas Infrastructure executes civil
construction contracts in Andhra Pradesh and Telangana.
V.V.G. PAPER: CRISIL Assigns 'B' Rating to INR21.75cr LT Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of V.V.G. Paper Industry Private Limited (VVG).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 21.75 CRISIL B/Stable (Assigned)
The rating reflects VVG's exposure to risks related to timely
stabilisation of operations in an intensely competitive industry,
vulnerability to volatile raw material prices, and cyclicality in
the industrial paper industry. These weaknesses are partially
offset by the extensive experience of the promoters.
Key Rating Drivers & Detailed Description
Weaknesses:
* Exposure to risks related to timely stabilisation of operations
in an intensely competitive industry: VVG commenced operations from
November 2019. Demand risk is expected to be moderate as the
industry is highly fragmented, marked by low entry barriers with
small capital and technological requirements. Timely stabilisation
of operations amid the inherent competitive pressure will remain
key rating sensitive factor.
* Vulnerability to volatile raw material prices and cyclicality in
the industrial paper industry: Operating margin remains susceptible
to volatile raw material (waste paper) prices, which are linked
directly to international prices. Any adverse fluctuation in raw
material prices can impact profitability. Kraft paper is used for
tertiary packaging; thus, offtake depends on industrial production
and other macroeconomic factors, such as gross domestic product
growth and disposable income, due to their strong linkage with
spending on consumer durables and fast-moving consumer goods.
Steady demand is necessary to further ramp-up scale and earnings
amid expansion of capacities.
Strengths:
* Extensive experience of the promoters: The project is being
promoted by the SR group, which has presence in various business
sectors such as cement & steel trading, construction & land
development, and stone crushers. Longstanding presence of the
promoter in diversified operations should continue to support the
business.
Liquidity Stretched
Cash accrual is expected to be modest around INR0.2-0.4 crore in
the near term since the company is operational from November 2019.
However, the repayment obligation commences from April 2020. VVG
recently availed cash credit limit of INR5 crore to fund the
working capital requirements.
Outlook: Stable
CRISIL believes VVG will continue to benefit from the extensive
experience of the promoters.
Rating sensitivity factors:
Upward factors
* Stabilisation of operations, resulting in revenue of more than
Rs.25 crore with the operating margin of more than 5%
* Strengthening of the financial risk profile
Downward factors
* Slower than expected stabilisation of operations, resulting in
significant losses
* Weakening of the interest coverage ratio to less than 1.0 times.
VVG, incorporated in 2017, is a Hosur (Krishnagiri, Tamil
Nadu)-based company that set up a plant to manufacture Kraft paper.
The plant commenced operations from November 2019. Ms G Neelima and
Mr Dilip Kumar P are the promoters.
VGA DEVELOPERS: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: VGA Developers Private Limited
Office No. 518, 7th Floor
Pearl Omaxe Tower-II
Netaji Subhash Place
Pitampura New Delhi
North West Delhi 110034
India
Insolvency Commencement Date: January 6, 2020
Court: National Company Law Tribunal, Delhi Bench
Estimated date of closure of
insolvency resolution process: July 4, 2020
(180 days from commencement)
Insolvency professional: Pankaj Kumar Singhal
Interim Resolution
Professional: Pankaj Kumar Singhal
A-233, Ground Floor
Bunkar Colony
Ashok Vihar, Phase-IV
Delhi 110052
E-mail: aprassociatesllp@gmail.com
cirp.vgadevelopers@gmail.com
- and -
Insolvency and Bankruptcy Board of India
(IBBI)
7th Floor, Mayur Bhawan
Shankar Market, Connaught Circus
New Delhi 110001
Classes of creditors: Home Buyers
Insolvency
Professionals
Representative of
Creditors in a class: Mr. Rakesh Kumar Jain
Flat J-6 2nd Floor
Pocket 9A Jasola
New Delhi
Delhi 110025
E-mail: sirshree.rakesh@gmail.com
Mr. Parveen Kumar Garg
105-B/2 Pal Mohan Plaza
D B Gupta Road, Karol Bagh
New Delhi 110005
E-mail: pkgcosec@rediffmail.com
Ms. Madhu Juneja
4704 Ashoka Enclave
Plot No. 8A, Sector 11
Dwarka, New Delhi 110075
E-mail: madhujun94@gmail.com
Last date for
submission of claims: January 25, 2020
VISWAM EDUCATIONAL: CRISIL Cuts Rating on INR4.96cr LT Loan to D
----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Viswam
Educational Society (VES) to 'CRISIL D Issuer Not Cooperating' from
'CRISIL BB-/Stable Issuer Not Cooperating'. The downgrade reflects
delays in repayment of debt obligations, because of its stretched
liquidity position.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 4.96 CRISIL D (ISSUER NOT
COOPERATING; Downgraded
from 'CRISIL BB-/Stable
ISSUER NOT COOPERATING')
Proposed Long .04 CRISIL D (ISSUER NOT
Term Bank Loan COOPERATING; Downgraded
Facility from 'CRISIL BB-/Stable
ISSUER NOT COOPERATING')
Secured Overdraft 4.00 CRISIL D (ISSUER NOT
Facility COOPERATING; Downgraded
from 'CRISIL BB-/Stable
ISSUER NOT COOPERATING')
CRISIL has been consistently following up with VES for obtaining
information through letters and emails dated October 29, 2018,
November 28, 2018 and September 30, 2019 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company'.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL has
not received any information on either the financial performance or
strategic intent of VES. This restricts CRISIL's ability to take a
forward-looking view on the credit quality of the entity.
VES, a society was established in 1991, and the overall operations
of the trust are being managed by its secretary Mr. Prabhakar
Reddy. It runs 5 educational institutions under the Viswam brand.
Its schools and colleges are located in and around Chittoor (Andhra
Pradesh).
YES BANK: Moody's Reviews B2 Rating, Direction Uncertain
--------------------------------------------------------
Moody's Investors Service placed Yes Bank Limited's long-term
foreign currency issuer rating of B2 under review, with the
direction uncertain.
Moody's has also placed the bank's long-term foreign and local
currency bank deposit ratings of B2, and its foreign currency
senior unsecured MTN program rating of (P)B2, under review, with
the direction uncertain.
At the same time, Moody's has downgraded Yes Bank's Baseline Credit
Assessment and adjusted BCA to caa2 from b3.
RATINGS RATIONALE
The placing of Yes Bank's deposit rating of B2 under review
reflects Moody's expectation that the bank's standalone viability
is getting increasingly challenged by its slowness in raising new
capital. Moody's points out that the potential credit risk to the
bank's senior creditors is uncertain, because there are a number of
diverse scenarios that could affect the rating in either positive
or negative directions.
Moody's says that because the viability of the bank absent a large
capital injection is in question, Moody's has downgraded the bank's
standalone credit profile or its BCA to caa2 from b3.
Yes Bank is in discussions with a number of investors to raise new
equity capital, which would be credit positive if executed
successfully. If the bank successfully recapitalizes and repairs
and cleans its balance sheet, its ratings could stabilize or face
upward pressure.
If a private sector solution is unsuccessful, and a regulatory led
resolution is implemented, Moody's expects that the Indian
authorities will strive to maintain systemic stability and avoid
losses to depositors and senior creditors. Any concrete measures
from the Indian authorities to resolve the bank without losses to
the bank's depositors and senior creditors could also lead to a
stabilization or upward movement in the bank's ratings.
A scenario where neither a private sector recapitalization nor
balance sheet repair are forthcoming would be credit negative, and
could lead to a downward movements of the bank's ratings.
Moody's maintains a negative adjustment for corporate behavior in
Yes Bank's BCA, leading to a one-notch negative adjustment to the
bank's BCA when compared to its financial profile. The corporate
behavior adjustment reflects the Reserve Bank of India's
identification of several lapses and regulatory breaches in the
bank's operations in fiscal 2018 (the 12 months to March 2018). The
corporate behavior adjustment also takes into account the
divergence in reported asset quality and profitability based on
RBI's inspection which indicated higher NPLs and lower
profitability as compared to the metrics disclosed by Yes Bank in
fiscal 2019.
WHAT COULD CHANGE THE RATING UP
Moody's could change the ratings outlook to stable or upgrade the
bank's ratings, if Yes Bank concludes a material capital raise that
strengthens its equity capital ratio, after providing for the
potential stressed assets, to a level in-line with other similarly
rated Indian banking peers.
Moody's could also upgrade Yes Bank's ratings if the bank receives
further government support that benefits its senior creditors and
depositors.
WHAT COULD CHANGE THE RATING DOWN
Moody's could downgrade the bank's ratings if the bank is unable to
secure a large capital increase within the review period, or its
funding or liquidity deteriorates.
Moody's could also downgrade Yes Bank's ratings if the Indian
government's propensity to support the bank diminishes, and the
likelihood of burden-sharing by Yes Bank's senior creditors
increases.
The principal methodology used in these ratings was Banks
Methodology published in November 2019.
Yes Bank Limited is headquartered in Mumbai and reported total
assets of INR3.5 trillion ($49.1 billion) at September 30, 2019.
List of affected ratings
Yes Bank Limited
- Long-term foreign currency issuer rating of B2, placed on
Review Direction Uncertain, Outlook changed to Rating Under Review
from Negative
- Long-term foreign and local currency deposit ratings of B2,
placed on Review Direction Uncertain, Outlook changed to Rating
Under Review from Negative
- Short-term foreign and local currency deposit ratings affirmed
at NP
- Foreign currency senior unsecured MTN program rating of (P)B2,
placed on Review Direction Uncertain
- Baseline Credit Assessment (BCA) and adjusted BCA downgraded to
caa2 from b3
- Long-term Counterparty Risk Assessment (CR Assessment) of
B1(cr), placed on Review Direction Uncertain
- Short- term CR Assessment affirmed at NP(cr)
- Long-term domestic and foreign currency counterparty risk
rating (CRR) of B1, placed on Review Direction Uncertain
- Short-term domestic and foreign CRR affirmed at NP
- Outlook Action: Outlook changed to Rating Under Review from
Negative
Yes Bank, IFSC Banking Unit Branch
- Foreign currency senior unsecured MTN program rating of (P)B2,
placed on Review Direction Uncertain
- Foreign currency senior unsecured debt rating of B2, placed on
Review Direction Uncertain, Outlook changed to Rating Under Review
from Negative
- Long-term CR Assessment of B1(cr), placed on Review Direction
Uncertain
- Short-term CR Assessment affirmed at NP(cr)
- Long-term domestic and foreign currency CRR of B1, placed on
Review Direction Uncertain
- Short-term domestic and foreign currency CRR affirmed at NP
- Outlook Action: Outlook changed to Rating Under Review from
Negative
=================
S I N G A P O R E
=================
HYFLUX LTD: Applies for 3-Month Extension of Debt Moratorium
------------------------------------------------------------
Sharanya Pillai at The Business Times reports that Hyflux Ltd has
applied to the Singapore High Court for a three-month extension of
its debt moratorium and to hold scheme meetings, the company
announced in a bourse filing on Jan. 15.
The applications will be heard on Jan. 29, BT discloses.
According to the report, the update comes as white knight Utico is
set to convene a townhall this week to address concerns brought up
by Hyflux's medium-term noteholders and Perpetual securities and
Preference (PnP) investors.
The townhall will most likely be held on Jan 20, and will be
arranged by the Securities Investors Association (Singapore) or
Sias, Utico said in a statement to The Business Times on Jan. 14.
On Jan. 13, Sias wrote to Hyflux about the "pressing concerns" of
the PnP informal steering committee, BT recalls. A number of PnP
investors holding "substantial debt" plan to vote against the Utico
rescue deal at the scheme meeting in March.
For Hyflux to get its restructuring plans approved by creditors,
the scheme of arrangement must be passed by each class of debt
holders by both 75 per cent of the votes cast and more than 50 per
cent in the number of people voting, the report notes.
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.
JEP HOLDINGS: Unit Served Writ of Summons, Statement of Claim
-------------------------------------------------------------
Lee Meixian at The Business Times reports that JEP Holdings on Jan.
14 said its wholly-owned unit, JEP Industrades, has been served a
writ of summons and a statement of claim by Korea-domiciled
plaintiff, YG-1 Co, in the High Court of Singapore.
This was for claims of US$219,284.25 in relation to outstanding
payables amount for shipment made in 2016, BT discloses.
BT says JEP Industrades is required to satisfy the claim or make an
appearance within eight days after the service of the writ of
summons, failing which the plaintiff may proceed to enter judgment
against it.
BT relates that JEP said the claim amount will not materially nor
adversely affect the group's financial position.
"The company has engaged legal counsel to represent the company and
will release further announcements to update shareholders on any
material developments as and when appropriate."
JEP Holdings Ltd. is a Singapore-based investment holding company
engaged in the provision of management services to its
subsidiaries. The Company operates in the precision engineering
segment, which is organized into six reporting units: aerospace
unit, which is a provider of the manufacturing service for engine
casings; oil and gas unit, which is a provider of manufacturing
services to oil drilling equipment, in particular, body connectors
for clip risers and related rigs; electronics unit, which is a
provider of manufacturing and assembly services for parts used by
the semiconductor, telecommunication and medical industries;
precision engineering unit, which is a provider of precision
machining services for automotive parts; trading and other unit,
which is a provider of machine sales and customized cutting tools
for its customers, and equipment manufacturing unit, which is a
provider of large format precision engineering and equipment
fabrication service.
SWEE HONG: Proposes SGD4MM Placement as Part of Restructuring
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Sharanya Pillai at The Business Times reports that Swee Hong has
entered an agreement to raise SGD4 million in gross proceeds via a
private placement to CIIC Group, a company solely owned by Swee
Hong's executive director Tian Yuan.
Proceeds from the placement will partly fund a scheme of
arrangement Swee Hong plans to propose to creditors, BT says. The
company had SGD26.5 million in debt, against cash of SGD331,000, on
its books as at end-September.
In a bourse filing on Jan. 15, Swee Hong said that it plans to
propose a scheme of arrangement comprising a write-off of specified
debts, as well as payment to creditors of the balance amount in
cash and shares, BT relates. Further details of the scheme have yet
to be finalised.
According to the report, Swee Hong plans to use up to half of the
placement proceeds to repay creditors under the scheme, and the
remainder to repay advances and interim financing extended by CIIC
from August 2019.
CIIC is a general contractor firm involved in building construction
and upgrading, as well as investment and trading. It will hold an
88 per cent stake in the enlarged share capital of the company
post-placement, BT notes.
CIIC was introduced to Swee Hong by a business contact prior to the
appointment of Mr. Tian as an executive director in October last
year, the company said in its filing, the reportt relays.
BT says Swee Hong will be applying to the Singapore High Court to
convene a creditors' meeting for the scheme of arrangement. Both
the placement and scheme are expected to take place concurrently.
Swee Hong will have to seek shareholder approval to issue shares
for both corporate actions.
Trading in Swee Hong shares has been suspended since May 2019. The
company is currently under court protection from creditors, BT
notes.
About Swee Hong
Swee Hong Ltd (SGX:QF6) -- http://sweehong.sg/-- is a
Singapore-based company, which is engaged in the business of
building construction and investment holding. Its segments include
Civil Engineering and Tunnelling. The Civil Engineering segment
includes civil engineering works, such as road construction works,
road maintenance works, sewerage rehabilitation (excluding
tunneling works), drains (excluding tunneling works), soil
improvement works and other infrastructure works. The Tunnelling
segment includes micro-tunneling works. The Company's ongoing
projects include road widening of upper Paya Lebar road from Upper
Serangoon road to Bartley road and sewer diversion at Springleaf
station. The Company focuses on Parks and Services, Infrastructure
Construction and Tunneling. It provides services, such as
architectural, mechanical and electrical (M&E); civil and structure
(C&S); soil works; landscaping; roads; bridges; flyover; canals,
and project management.
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