/raid1/www/Hosts/bankrupt/TCRAP_Public/200131.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
Friday, January 31, 2020, Vol. 23, No. 23
Headlines
A U S T R A L I A
FRONTIERDC LTD: First Creditors' Meeting Set for Feb. 6
GREENLIT BRANDS: Reports AUD288MM Loss After Massive Write-Down
HOANG LONG: First Creditors' Meeting Set for Feb. 6
HYBRID AGENCY: Clifton Hall Appointed as Liquidator
INTACT PROJECTS: First Creditors' Meeting Set for Feb. 7
ISIGNTHIS: Remains Suspended Ahead of Report Release
SOUTH AUSTRALIAN PRAWN: First Creditors' Meeting Set for Feb. 7
C H I N A
ORIGIN AGRITECH: Delays Filing of Form 20-F for FY Ended Sept. 30
I N D I A
AGASTI SAHAKARI: CARE Lowers Rating on INR15cr LT Loan to B
ATLANTIC PROJECTS: CARE Maintains D Rating in Not Cooperating
AVON INFRACON: Insolvency Resolution Process Case Summary
BABLI WAREHOUSE: CARE Cuts INR5.57cr Loan Rating to 'D', Not Coop.
BETTER VALUE: CARE Maintains 'B' Rating in Not Cooperating
BHARAT WIRE: CARE Maintains 'D' Rating in Not Cooperating
CANARA GOODS: CARE Withdraws B+ Rating on Bank Facilities
D.I. PACKAGING: Insolvency Resolution Process Case Summary
DANEM HEAVY: CARE Lowers Rating on INR30cr LT Loan to B+
DEWAN HOUSING: Diverted INR12,733cr Through 1 Lakh Fake Borrowers
EMERALD LANDS: Insolvency Resolution Process Case Summary
EON ELECTRIC: CARE Cuts Rating on INR40cr LT Loan to D, Not Coop.
ESS DEE ALUMINIUM: CARE Maintains D Rating in Not Cooperating
GRAN ELECTRONICS: Insolvency Resolution Process Case Summary
HYDROLINA BIOTECH: Insolvency Resolution Process Case Summary
J V STEEL: CARE Assigns 'B+' Rating to INR10.50cr LT Loan
JC WORLD HOSPITALITY: Insolvency Resolution Process Case Summary
MALLIKHARJUNA AGENCIES: CARE Keeps B+ Rating in Not Cooperating
MIRAJ METALS: CARE Maintains 'D' Rating in Not Cooperating
MIRAJ RECYLERS: CARE Maintains 'D' Rating in Not Cooperating
MODI TELECOMMUNICATIONS: Insolvency Resolution Case Summary
MUKTAR AUTOMOBILES: CARE Cuts INR11.88cr Loan Rating to D, Non-Coop
PIONEER GLOBEX: Insolvency Resolution Process Case Summary
POGGENAMP NAGARSHETH: Insolvency Resolution Process Case Summary
POPULAR STORES: CARE Maintains 'B' Rating in Not Cooperating
R. K. AND COMPANY: CRISIL Migrates B+ Rating to Not Cooperating
RAJ KISHORE: CRISIL Migrates B+ Rating to Not Cooperating
RAM ENGINEERS: CRISIL Migrates 'D' Rating to Not Cooperating
REACH SEAMLESS: Insolvency Resolution Process Case Summary
REVIVE CONSTRUCTION: CRISIL Withdraws D Rating on INR100cr Loans
SENIOREETAA DESIGNER: Insolvency Resolution Process Case Summary
SEYA INDUSTRIES: CARE Maintains 'D' Rating in Not Cooperating
SHRI BALAJI: Insolvency Resolution Process Case Summary
SHRISTI PLYWOOD: Insolvency Resolution Process Case Summary
SKYHIGH INFRAPROJECTS: Insolvency Resolution Process Case Summary
SONALI ENERGEES: Insolvency Resolution Process Case Summary
SRI DHANALAKSHMI: CRISIL Migrates 'B+' Rating to Not Cooperating
SRK GROUP: CARE Maintains D Rating in Not Cooperating Category
UMANG REALTECH: Insolvency Resolution Process Case Summary
I N D O N E S I A
ASURANSI JIWASRAYA: Parent in Talks w/ Foreign, Domestic Investors
P H I L I P P I N E S
RB OF LORETO: Deposit Insurance Claims Deadline Set Feb. 14
S I N G A P O R E
ASTORIA DEVELOPMENT: Condo Buyers to Have Priority Claims
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A U S T R A L I A
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FRONTIERDC LTD: First Creditors' Meeting Set for Feb. 6
-------------------------------------------------------
A first meeting of the creditors in the proceedings of FrontierDC
Ltd will be held on Feb. 6, 2020, at 10:00 a.m. at the offices of
Pitcher Partners, Level 11, at 12-14 The Esplanade, in Perth, WA.
Bryan Kevin Hughes and Daniel Johannes Bredenkamp of Pitcher
Partners were appointed as administrators of FrontierDC Ltd on Jan.
29, 2020.
GREENLIT BRANDS: Reports AUD288MM Loss After Massive Write-Down
---------------------------------------------------------------
Dominic Powell at The Sydney Morning Herald reports that furniture
and bedding retailer Greenlit Brands has plunged to a nearly AUD300
million loss following a massive impairment and residual losses
from failed department store chain Harris Scarfe.
In documents filed to the corporate regulator on Jan. 29, Greenlit
revealed its total loss for the year up to September 29 came in at
AUD287.7 million, a huge increase from its AUD23.7 million loss in
the 2018 financial year, SMH discloses.
This was due to a AUD154 million write-down of the company's
goodwill, which assesses things like brand recognition, and AUD125
million in losses from its since-divested general merchandise
division, which included now-collapsed department store Harris
Scarfe, SMH relates.
Its revenue from continuing operations, which excludes its divested
division, stayed steady at AUD1.07 billion, up marginally from
AUD1.03 billion in 2018, according to SMH.
In a report from its directors, the company noted its underlying
earnings before interest, tax, depreciation and amortisation
(EBITDA) on continuing operations came in at AUD49.6 million for
the year, a drop of nearly 30 per cent from 2018.
SMH says the directors flagged the business was continuing to look
for an exit from South African parent company Steinhoff
International. This included the purchase of a number of trademarks
from Steinhoff to reduce royalty exposure and ensure "unfettered
ownership".
"[Greenlit] remains financially and operationally independent from
its parent group, Steinhoff lnternational. [Greenlit] continues to
carefully and methodically consider various options around
separation from its ownership by Steinhoff," SMH quotes the
directors as saying.
The company also noted it would look to sell its non-retail
investments, such as distribution centres, to invest further in its
existing brands and pay down debt, SMH relays.
In a statement, executive chairman Michael Ford said the local
retail environment continued to be challenging, but noted the
company was pleased with its EBITDA result for its continuing
operations.
"Our strategy for 2020 and beyond is to continue to optimise the
brand strength, competitive positioning and synergies across our
core household goods brands and to continue to pay down remaining
external debt of circa AUD50 million," SMH quotes Mr. Ford as
saying.
Greenlit is the parent company for a number of prominent homegoods
retailers, including Freedom, Fantastic and Snooze. It sold its
general merchandise division, to private equity company Allegro in
November.
HOANG LONG: First Creditors' Meeting Set for Feb. 6
---------------------------------------------------
A first meeting of the creditors in the proceedings of Hoang Long
Investments Pty Ltd as Trustee for the Pham & Le Family Trust will
be held on Feb. 6, 2020, at 11:00 a.m. at the offices of Hamilton
Murphy Advisory, Level 1, at 255 Mary Street, in Richmond,
Victoria.
Stephen Dixon of Hamilton Murphy Advisory was appointed as
administrator of Hoang Long on Jan. 24, 2020.
HYBRID AGENCY: Clifton Hall Appointed as Liquidator
---------------------------------------------------
Timothy Clifton of Clifton Hall was appointed as Liquidator of
Hybrid Agency Pty Ltd on Jan. 22, 2020.
INTACT PROJECTS: First Creditors' Meeting Set for Feb. 7
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Intact
Projects Pty Ltd will be held on Feb. 7, 2020, at 3:00 p.m. at the
offices of Mackay Goodwin, Level 2, at 10 Bridge Street, in Sydney,
NSW.
Domenico Alessandro Calabretta and Grahame Ward of Mackay Goodwin
were appointed as administrators of Intact Projects on Jan. 28,
2020.
ISIGNTHIS: Remains Suspended Ahead of Report Release
----------------------------------------------------
Sarah Danckert at The Sydney Morning Herald reports that a report
by the market operator into troubled tech group iSignthis,
including its findings and proposed actions, is expected to be
released late next week.
SMH relates that the ASX said on Jan. 30 that it had agreed not to
publish its final report into iSignthis until a court hearing on
February 7 over the group's suspension from trading.
According to the report, the ASX said it was still considering
iSignthis' response to its draft findings and proposed actions
related to iSignthis's alleged lack of adherence to listing rules.
Sources close to iSignthis said the group had disputed elements of
ASX's initial findings and proposed measures and was concerned the
draft report included errors, SMH relays.
SMH says the company took the unusual step of suing the ASX in the
Federal Court, alleging the market operator had breached its own
rules and the Corporations Act by unfairly suspending the company
from trading.
iSignthis provides customer verification and payment services to
clients such as contracts for difference (CFD) providers so they
can meet "know your client" requirements under anti-money
laundering regulations.
iSignthis has been locked in a battle with the ASX since October
over the quality of the group's disclosures to its shareholders and
the calibre of its customers, some of which are online trading
platform operators that have been accused by the corporate watchdog
of unconscionable conduct, SMH states.
SMH relates that the ASX said in an announcement on Jan. 30 that it
had granted an extension to iSignthis to respond to its draft
report after a request from the technology company.
"On December 6, 2019, ASX sent to iSignthis a draft of ASX's
proposed findings and proposed actions."
"iSignthis responded to ASX's draft findings on Friday January 24,
2020. ASX is currently considering iSignthis's response."
ASX included no other details as to the tenor of the report or
iSignthis's response, SMH notes.
"Given this matter is now before the court and the first case
management hearing in the proceedings is scheduled for February 7,
2020, ASX has agreed not to publish the findings prior to that
hearing."
SMH recalls that the ASX suspended iSignthis's shares in early
October following consultation with the Australian Securities and
Investments Commission which has been taking legal action against a
cohort of iSignthis customers. ASIC is also investigating
iSignthis.
The Sydney Morning Herald and The Age this week revealed iSignthis
was facing a potential class action over statements it had made to
the ASX regarding its revenue and profit forecasts.
SOUTH AUSTRALIAN PRAWN: First Creditors' Meeting Set for Feb. 7
---------------------------------------------------------------
A first meeting of the creditors in the proceedings of South
Australian Prawn Co-operative Limited will be held on Feb. 7, 2020,
at 10:00 a.m. at the offices of Clifton Hall, Level 3, at 431 King
William Street, in Adelaide, South Australia.
Daniel Lopresti and Timothy Clifton of Ferrier Hodgson were
appointed as Joint and Several Administrators of South Australian
Prawn on Jan. 28, 2020.
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C H I N A
=========
ORIGIN AGRITECH: Delays Filing of Form 20-F for FY Ended Sept. 30
-----------------------------------------------------------------
Origin Agritech Limited notified the Securities and Exchange
Commission that it will be delayed in filing its Annual Report on
Form 20-F for the year ended Sept. 30, 2019. The Company said the
verification and review of the information required to be presented
in the Form 20-F has required additional time rendering timely
filing of the Form 20-F impracticable without undue hardship and
expense.
About Origin
Founded in 1997 and headquartered in Zhong-Guan-Cun (ZGC) Life
Science Park in Beijing, Origin Agritech Limited (NASDAQ GS: SEED)
-- http://www.originseed.com.cn-- is an agricultural biotechnology
company, specializing in crop seed breeding and genetic
improvement, seed production, processing, distribution, and related
technical services. Origin operates production centers, processing
centers and breeding stations nationwide with sales centers located
in key crop-planting regions. Product lines are vertically
integrated for corn, rice and canola seeds.
Origin Agritech reported a net loss of RMB152.79 million for the
year ended Sept. 30, 2018, following a net loss of RMB106.26
million for the year ended Sept. 30, 2017.
BDO China Shu Lun Pan Certified Public Accountants LLP, in
Shenzhen, The People's Republic of China, the Company's auditor
since 2011, issued a "going concern" qualification in its report
dated June 3, 2019, on the Company's consolidated financial
statements for the year ended Sept. 30, 2018, citing that the
Company has suffered recurring losses from operations and has a net
capital deficiency that raise substantial doubt about its ability
to continue as a going concern.
=========
I N D I A
=========
AGASTI SAHAKARI: CARE Lowers Rating on INR15cr LT Loan to B
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Agasti Sahakari Sakhar Karkhana Limited (ASSKL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE B; Stable Revised from
Facilities CARE B+; Stable
(Fund Based)
Detailed Rationale & Key Rating Drivers
The revision in ratings of the bank facilities of ASSKL takes into
account the ongoing debt funded capital expenditure for the setting
up of the Distillery plant which is to be completed by February
2020. The rating continues to factor in capital intensive nature
business, deterioration in debt protection matrices, solvency
ratios as well as the liquidity position of the company as on March
31, 2019 and 9MFY20 (Refers to April 2019 to December 2019). The
rating however, continues to derive strength from the long and
established track record of over three decades of the company in
the sugar industry, strong ability of the company to procure
sufficient cane from the command area, and the capacity to increase
its scale of operations from existing as well as new business
segment.
Rating Sensitivities
Positive Factors
* Ability of the society to improve and sustain its profit margins
for the future years due to easy accessibility to canes and higher
recovery rates.
* Generate envisaged revenues and profitability from upcoming
distillery business.
Negative Factors
* The society's further dependence on external debt which in turn
will further deteriorate the debt coverage indicators from current
levels.
* Reduction in revenues and profitability impacting DSCR.
Detailed description of the key rating drivers
Key Rating Strengths
Experienced promoters with long and established track record of the
society in the sugar industry
ASSKL is a co-operative society promoted by Mr. Madhukarroa
Kashinath Pichad (Chairman) and Mr. Sitaram Gaikar (Vice chairman)
to undertake sugar and sugar related production. Mr. Madhukarroa
Kashinath Pichad has three decades of experiences in the sugar
industry. Presently, he is with ASSKL and looks after overall
activities of the society. Mr. Sitaram Gaikar (Vice Chairman) and
Mr. Bhaskar Ghule (Managing Director) look after the day to day
operations of the company.
Location advantage with adequate cane availability led by cordial
relations with local populace
The sugar plant of ASSKL is located in the sugarcane cultivation
area of village Agastinagar. The command area of ASSKL comprises of
271 villages with total land under sugarcane cultivation of about
6902 hectares, translating into availability of nearly 6.00 lakh MT
of sugarcane (with an average yield of 87MT/hectare). The area has
sugarcane with an average recovery rate of 11%-11.5%. The area is
well irrigated over the years with consistent supply of water
through the Adhala dam. The water from the dam is distributed to
agriculture lands and industries in region through Pravare and Mula
River.
Financial risk profile marked by growth in Total Operating Income,
improved yet thin profitability margin
The total operating income (TOI) of ASSKL registered a growth of
27.32% to INR245.40 crore during FY19 as against TOI of INR192.75
crore during FY18. The increase in sales was on account of higher
crushing of sugar in FY19 in comparison to FY18. The cane crushed
in FY19 was 5.76lakh MT (FY18: 5.38 lakh MT). The PBILDT margin
improved to 8.08% during FY19 as against 7.33% during FY18 on
account of decrease in procurement price of sugar cane and increase
in the recovery rate. PAT margin of the society was at 0.11% during
FY19 as against 0.03% during FY18 and the society reported PAT of
INR0.27 crore in FY19 as against INR0.06 crore during FY18.
Key Rating Weaknesses
Weak Capital Structure and debt coverage indicators
The debt profile of the society mainly comprised of term loan,
basel dose loan and pledge loan. The overall gearing of the society
deteriorated and stood at 6.06x as on March 31, 2019 as against
4.28x as on March 31, 2018 on account of increase in sugar pledge
loan. Further, during 9MFY20 UA, the society availed term loan of
about INR54.00 crores for funding the distillery division. The
total cost of the project is INR60.00 crores out which Rs54.00
crores is debt funded and INR6.00 crores will be brought in by
promoters. The plant will be operational from February 2020. The
interest coverage was seen moderate at 1.23x during FY19 (1.35x
during FY18). The repayments of new term loan starting FY21 is
expected to impact the debt protection matrices. Improvement in GCA
and any further deterioration in capital structure is key rating
sensitivity.
Working capital intensive nature of operations
The operating cycle of the society deteriorated from 244 days in
FY18 to 280 days in FY19 on account of lower realization from sugar
stock. The working capital requirement is met through pledge loan
with total sanction limit of 164.00 crore as on March 31, 2019. The
utilization was 83.64% for the last 12 months ending December
2019.
Cyclical and seasonal nature of industry along-with inherent
agro-climatic risks
Sugarcane is the key raw material used for the manufacture of sugar
and sugar-related products. The availability and yield of
sugarcane depends on factors like rainfall, temperature and soil
conditions, demand-supply dynamics, government policies etc. The
production of sugarcane and hence sugar is cyclical in nature. The
cyclical and seasonal nature of the industry increases the need for
diversification in revenue streams in the form of ethanol
production (distillery) and power generation (co-generation). The
seasonality of the business has significant impact on the
profitability and sustainability of sugar mills.
Liquidity- Stretched
The liquidity is marked by moderate cash accruals of INR3.76crores
when compared to repayment obligations going forward, utilization
of bank limits at 83.64% and cash balance of INR6.78crores. The
production of sugar in India is highly seasonal in nature, with
more than 80% of the sugar being produced during the period of
November to April and sold in a staggered manner over the year on
account of regulatory control of the government via the sugar
release quota. This results in high finished goods inventory
carrying cost leading to working capital intensiveness. The
inventory period for the ASSKL deteriorated from 244 days in FY18
to 280 days in FY19. The working capital requirement is met through
pledge loan with total sanction limit of INR164crore as on December
31, 2019 and the utilization over the period of past 12 months
(ended on December 31, 2019) averaged at 83.64%.
ASSKL was incorporated under Maharashtra Co-Operative Societies Act
1960 in a year 1992-93, to undertake sugar and sugar related
production by Mr. Madhukarrao Kashninath Pichad (Chairman) and Mr.
Sitaram Gaikar (Vice Chairman). The first crushing season of the
sugar factory was conducted in Sugar Season (SS) 1992-93 with an
installed capacity of 2500 TCD. ASSKL has set up its New Distillery
Division in FY20 with an installed capacity of 30 KLPD which will
start operating from February 2020.
ATLANTIC PROJECTS: CARE Maintains D Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Atlantic
Projects Limited (APL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 123.45 CARE D ISSUER NOT COOPERATING,
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated July 24, 2018, continued the
rating of APL under the 'issuer non-cooperating' category as APL
had failed to provide information for monitoring of the rating and
had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. APL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
November 1, 2019. In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the best available information
which however, in CARE's opinion is not sufficient to arrive at a
fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
At the time of last rating on July 24, 2018 the following were the
rating strengths and weaknesses (updated for the information
available):
Key Rating Weaknesses
Delay in servicing of debt obligations: There are ongoing delays in
servicing of debt obligations by APL.
APL was incorporated in October, 1999, promoted by Mr Siddharth
Mehra and his brother Mr Kapil Mehra. The company commenced
operation in 2005 by venturing into the cotton trading business.
The company traded in raw cotton, cotton yarn and fabrics and
catered to both the domestic and export market. In FY13 (refers to
the period April 1 to March 31), the company forayed into executing
civil construction work for public sector enterprises and was
awarded contracts for construction of multipurpose cyclone shelters
and food godowns.
In FY15, APL reported a net profit of INR3.94 crore on a total
operating income of INR311.24 crore. In 9MFY16, the company
reported total operating income of INR198.48 crore.
AVON INFRACON: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Avon Infracon Private Limited
7, 383C Bank Street
Munirka, New Delhi 110067
Insolvency Commencement Date: January 14, 2020
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: July 12, 2020
(180 days from commencement)
Insolvency professional: Mr. Sandeep Goel
Interim Resolution
Professional: Mr. Sandeep Goel
410, Pratap Bhawan
5, Bahadur Shah Zafar Marg
New Delhi 110002
E-mail: cmasandeepgoel@gmail.com
irp.avoninfracon@gmail.com
Last date for
submission of claims: January 31, 2020
BABLI WAREHOUSE: CARE Cuts INR5.57cr Loan Rating to 'D', Not Coop.
------------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Babli Warehouse, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term bank 5.57 CARE D; ISSUER NOT COOPERATING;
Facilities Revised from CARE B; Stable on
the basis of best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking monthly No default statement (NDS) from Babli
Warehouse to monitor the ratings vide e-mail communications/letters
dated January 6, 2020, January 2, 2020, December 31, 2019, December
6, 2019, December 4, 2019, December 2 2019, November 29, 2019,
November 7, 2019, November 5, 2019, November 1, 2019, and numerous
phone calls. However, despite CARE's repeated requests, the entity
has not provided the monthly NDS for monitoring the ratings. In
line with the extant SEBI guidelines, CARE has reviewed the rating
on the basis of the publicly available information which however,
in CARE's opinion is not sufficient to arrive at a fair rating. The
ratings on Babli Warehouse bank facilities will now be denoted as
CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The revision in the rating assigned to the bank facilities of Babli
Warehouse takes into account the on-going delay in the debt
servicing of the entity.
Detailed description of the key rating drivers
Key Rating Weaknesses
Ongoing delays in debt servicing: There are on-going delays in term
loan servicing of the entity.
Babli was established as a proprietorship firm on June 7, 2015 to
set up rural godown having 9 godowns with storage capacity 14,887
metric tons (MT) under "Gramin Bhandaran Yojana" (sub scheme of
Agricultural Marketing Infrastructure) for the scientific storage
of agricultural produce. The primary objectives of the scheme
include creation of scientific storage capacity with allied
facilities in rural areas to meet the requirements of farmers for
storing farm produce, processed farm produce and agricultural
inputs; promotion of grading, standardization and quality control
of agricultural produce to improve their marketability; prevention
of distress sale immediately after harvest by providing the
facility of pledge financing and marketing credit; strengthen
agricultural marketing infrastructure in the country by paving the
way for the introduction of a national system of warehouse receipts
in respect of agricultural commodities stored in such godowns and
to reverse the declining trend of investment in agriculture sector
by encouraging private and cooperative sectors to invest in the
creation of storage infrastructure in the country. The firm has set
up rural godowns with aggregate project cost of INR7.58 crore
funded through equity contribution of INR2.01 crore and bank term
loan of INR5.57 crore.
BETTER VALUE: CARE Maintains 'B' Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Better
Value Leasing and Finance Limited (BVLFL) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 27.00 CARE B ISSUER NOT COOPERATING,
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from BVLFL to monitor the ratings
vide e-mail communications/letters dated between September 5, 2019
to January 2, 2020 and numerous phone calls. However, despite
CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating. Apart from that CARE
has not received the No Default Statement (NDS) from BVLFL for the
last 5 months i.e. since the month ended
August 31, 2019. After continuous follow-up via e-mails and
telephonic calls, the company has failed to provide the NDS. The
rating on Better Value Leasing and Finance Limited's bank
facilities and instruments will now be denoted as CARE B; Negative;
ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
At the time of last rating on March 31, 2019, the following were
the rating strengths and weaknesses:
Key Rating Weakness
Reduction in financial flexibility
BVLFL is promoted by the Gawande family and hold 88.27% equity in
the company. Gawande family has presence in various businesses like
Talwalkar Better Value Fitness Ltd. (chain of gymnasiums – rated
'CARE D'), S K Restaurants Pvt. Ltd. (chain of restaurants),
Popular Prakashan Pvt. Ltd. (publisher of books), Vans Information
Ltd. (electronic database for research business), and Popular
Institute of Art (arranger of art exhibitions).
Talwalkars Better Value Fitness Limited rating has been downgraded
to "CARE D" from 'CARE B' (Under Credit Watch with Negative
Implications) on account of default on certain interest payments.
With default by the flagship company of the group, the financial
flexibility of the group is deteriorated. This is expected to
impact the financial flexibility of BVLFL and it may find it
difficult to raise resources from the market.
High gearing levels
The company exceeded the stipulated limit of 7x as per RBI
guidelines for NBFC ND with asset size less than INR500 crore
whereby the gearing ratio stood at 10.72 times as on March 31, 2018
as compared to 5.68 times as on March 31, 2017. As per the
information (un-audited) submitted by the company as on March 26,
2019, the gearing ratio stands at 6.52 times after considering the
quasi equity of INR8.07 crore which the company raised from its
promoters to maintain the gearing ratio in line with the norms laid
down by RBI.
Borrower concentration
BVLFL faces borrower's concentration risk as it has fixed set of
known clients. The top 10 borrowers (including ICDs given) continue
to remain high at ~74% of its total loan book and ~78% of its
net-worth as on March 31, 2018.
Small size of operations and Regional concentration
Although BVLFL has around 30 years of track record, its scale of
operations of is small. Also, BVLFL operates only through its
Mumbai office with no branches. As on March 31, 2018, the lending
portfolio amounted to INR123.56 crore (PY: INR64.18 crore) which
includes INR96.94 crore (Rs.39.32 crore) as ICDs.
Moderate resource & liquidity profile
As on March 31, 2018, BVLFL had total borrowings of INR126.45 crore
as compared to INR61.95 crore as on March 31, 2017. Further,
security deposits from customers are also deployed in the business
for further lending. The CC facilities of INR27 crore have been
classified in the 6-12 month bracket in accordance with RBI
guidelines due to which there is a negative cumulative mismatch in
that bucket. The cash and bank balance as on March 31, 2018 stood
at INR2.47 crore as against INR0.61 crore in as on March 31, 2017.
However, out of that, INR2.12 crore (PY: INR0.54 crore) are
deposits with original maturity for more than 12 months.
Exposure to the SME sector
Customer profile of BVLFL comprises mainly of SME clients rendering
the company vulnerable to asset quality slippages in case of
economic downturn. Though the company has been lending to SME
clients, most of the clients are repeat and known customers and are
drawn through referrals from group companies which gives the
comfort to the company to keep control over its asset quality.
Liquidity Profile
The cash and bank balance as on March 31, 2018 stood at INR2.47
crore as against INR0.61 crore in as on March 31, 2017. However,
out of that, INR2.12 crore (PY: INR0.54 crore) are deposits with
original maturity for more than 12 months. The CC facilities of
INR27 crore have been classified in the 6-12 month bracket in
accordance with RBI guidelines due to which there is a negative
cumulative mismatch in that bucket.
Better Value Leasing and Finance Ltd. (BVLFL) was established in
1983 by the Gawande family as 'Better Value Leasing & Finance Pvt.
Ltd'. In 1995, the company changed its name to 'Better Value
Leasing & Finance Ltd.' BVLFL is a Non-Banking Finance Company
(NBFC) registered with RBI as a non-systemically important
non-deposit taking NBFC. It has been classified as an 'Asset
Financing Company (AFC)' and engaged in the business of hire
purchase (HP). The company offers equipment finance to SME clients
with majority of the loan portfolio constituted financing of hotel
industry/ kitchen equipment and gym equipment. The company has a
total staff of 17 people including the directors and operates out
of a single branch in Mumbai.
BHARAT WIRE: CARE Maintains 'D' Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Bharat Wire
Ropes Ltd (BWRL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 385.00 CARE D ISSUER NOT COOPERATING,
Facilities Based on best available
Information
Short term Bank 65.00 CARE D; ISSUER NOT COOPERATING
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers:
CARE has been seeking information from BWRL to monitor the
rating(s) vide email communications/letters dated January 6, 2020,
January 7, 2020, January 8, 2020, January 9, 2020 and numerous
phone calls. However, despite CARE's repeated requests, the company
has not provided the requisite information for monitoring the
ratings. In the absence of minimum information required for the
purpose of rating, CARE is unable to express opinion on the rating.
In line with the extant SEBI guidelines CARE's rating on Bharat
Wire Ropes Ltd's bank facilities will now be denoted as CARE D/CARE
D; ISSUER NOT COOPERATING, Based on best available information.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers:
The rating has been reaffirmed on account of the ongoing delays in
debt servicing of the company as informed by the lender.
BWRL is engaged in manufacturing of variety of wire strands, wire
ropes and slings of various sizes and dimensions ranging from 6
mm-125 mm diameter. The company has its facility located at Atgaon
with installed capacity of 12000 MTPA (metric tonnes per annum).
Further BWRL has commenced commercial production on March 22, 2017
at its Chalisgaon factory which has an installed capacity of 66,000
MTPA. The wire ropes are manufactured in galvanized as well as
ungalvanised carbon steel variants, stainless steel wire ropes. The
Company has a diverse product mix which includes Mechanically
Spliced Slings, Hand Spliced Slings, Earth Wires, Stay Wires, Guy
Wires, Spiral Strands, General Purpose Ropes, Fishing Ropes, Crane
Ropes, Structural Ropes, Elevator Ropes, Mining Ropes, Oil & Gas
Ropes & Shipping Ropes. The products find application in different
industries including oil & gas, mining, fishing, ports & marine,
elevator, power transmission, railways, construction,
infrastructure, defence, crane manufacturers, among others.
CANARA GOODS: CARE Withdraws B+ Rating on Bank Facilities
---------------------------------------------------------
CARE has reaffirmed and withdrawn the outstanding ratings of 'CARE
B+; Stable' assigned to the bank facilities of Canara Goods
Transport (CGT) with immediate effect. The above action has been
taken at the request of Canara Goods Transport (CGT) and 'No Due
Certificate' received from bank(s) that have extended the
facilities rated by CARE.
Mangaluru based, Canara Goods Transport (CGT) was established as a
transport service provider in 1968 by Mr. M Madhavraya Pai along
with his family. CGT is primarily engaged in providing transport
facilities for reputed corporate located in Mangaluru. CGT provides
its services to various states like Karnataka, Maharashtra and
Tamil Nadu. Once the CGT procures a contract, it manages the
end-to-end transporting requirements of the companies.
D.I. PACKAGING: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: D.I. Packaging Private Limited
Registered office:
A-48, Okhla Industrial Area
Phase-I, Delhi 110020
Insolvency Commencement Date: December 17, 2019
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: July 9, 2020
(180 days from commencement)
Insolvency professional: Puneet Sachdev
Interim Resolution
Professional: Puneet Sachdev
A-5/105C, Paschim Vihar
New Delhi 110063
E-mail: psachdev78@gmail.com
- and -
305, Deep Shikha Building
8, Rajendra Place
New Delhi 110008
E-mail: irpdipackagings@gmail.com
Last date for
submission of claims: January 25, 2020
DANEM HEAVY: CARE Lowers Rating on INR30cr LT Loan to B+
--------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Danem Heavy Industries Private Limited (DHI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term bank 30.00 CARE B+; ISSUER NOT COOPERATING;
Facilities Revised from CARE BB-; Stable
on the basis of best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from DHI to monitor the rating
vide e-mail communications/letters dated September 4, 2019,
September 6, 2019, September 9, 2019, September 18, 2019, and
November 8, 2019 and numerous phone calls. However, despite CARE's
repeated requests, the company has not provided the requisite
information for monitoring the rating.
In the absence of minimum information required for the purpose of
rating, CARE is unable to express opinion on the rating. In line
with the extant SEBI guidelines, CARE has reviewed the rating on
the basis of best available information which however, in CARE's
opinion is not sufficient to arrive at fair rating. The rating on
Danem Heavy Industries Private Limited's bank facilities will now
be denoted as CARE B+;Stable; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
At the time of last rating on October 12, 2018 the following were
the rating strengths and weaknesses:
Key rating drivers
Key Rating Weaknesses
Project implementation risk
The company proposes to establish a fabrication unit with installed
capacity of 63 Metric Tonnes per day. The estimated project cost is
INR49.45Crore, out of which INR29.56 crore of term loan, for
construction of factory building and for purchase of machinery
which has proposed to be financed by the bank. The remaining
INR15.07 crore has been funded by the promoters. The company also
proposes to borrow working capital facilities post commencement of
production. The company has purchased the land for the unit, which
spreads over 22 acres. Currently the project undergoing land
development stage. The commercial operations are expected to be
commenced during January 2019.
Profitability susceptible to volatile raw material prices
Any fluctuation in commodity prices especially that of steel, which
is the company's major raw material, will impact
profitability.
Highly fragmented and competitive business segment due to presence
of numerous players
The company is engaged into a fragmented business segment and
competitive industry. The market consists of several small to
medium-sized companies that compete with each other along with
several large enterprises. However it is partially mitigated by the
group support.
Key Rating Strengths
Extensive experience of the promoters in Fabrication industry
Mr. Parayil Daniel Mathew is a promoter of the company who is the
chairman of Danem Group, having experience of almost three decades
in fabrication service industry. Mrs Susan Mathew is another
promoter of the company, who is expertised in administration and
industrial exposure. Both the promoters belongs to a same family.
Comfort from group companies
DHI draws comfort from group companies in terms of orders,
operations, marketing and financial aspects. DHL belongs to Danem
Group which is operating around nine countries across the world
providing all metal fabrication products and services. Totally 16
entities are operating under this group. DHL will get the orders
from its group's existing clients, and for manpower it is deputing
some skilled and managerial employees from its associate
companies.
M/s. Danem Heavy Industries Private Limited (DHI) was incorporated
on 1st March 2016, registered under companies' act 2013. The
company is having its registered office at Ernakulum, Kerala. The
company proposes to engage in fabrication of Windmill Tower,
Pressure Vessels & Tanks, Structural Steel, Material Handling
equipments, Gas Turbine Auxiliaries and Supply Auto Auxiliaries.
DHI belongs to Danem Group, headquartered in UAE. The promoters are
Mr. Parayil Daniel Mathew and Ms. Susan Mathew, who are also the
directors of other associate companies under Danem Group.
DEWAN HOUSING: Diverted INR12,733cr Through 1 Lakh Fake Borrowers
-----------------------------------------------------------------
Livemint.com reports that the Enforcement Directorate (ED) in front
of the special court for prevention of money laundering on Jan. 29
said that Dewan Housing Finance Ltd diverted funds to the tune of
INR12,733 crore by using 1 lakh fake borrowers to 80 alleged shell
entities.
ED made these statements during the remand hearing of chairman and
managing director, Kapil Wadhawan. He was arrested on January 27.
The special court on January 29 extended his custody till January
31, according to Livemint.com.
"The funds were directed to 80 shell companies. A few builders are
also being probed as the money was diverted to them through
fictitious transactions. The funds were diverted to these shell
entities without any paper work and proper sanctions in garb of
retail loans. 1 lakh of these retail individual customers have been
found to be fake. These transactions are dating back to 2015," the
report quotes an official with the ED as saying.
Currently ED is trying to establish the credentials and
investigating details of these 80 shell companies to trace the
money, the report says.
Livemint.com relates that ED also clarified that Wadhawan has been
arrested for this particular fund diversion and that some of the
money found its way to properties under investigations in the Iqbal
Mirchi case.
"Part of the siphoned money was used to pay Mirchi and rest was
laundered," said the ED official, Livemint.com relays.
According to Livemint.com, the ED accused the Wadhawans of
purchasing shares of the five firms after which they got
amalgamated in Sunblink. These five firms are Faith Realtors,
Marvel Township, Abe Realty, Poseidon Realty and Random Realtors.
The outstanding loans of these five firms, which were around
INR2, 186 crore till July 2019, allegedly got appropriated onto the
books of Sunblink in order to cover the diversions of loans
acquired from DHFL.
The funds from DHFL were used to acquire few properties and assets
by Mirchi, Livemint.com says.
About DHFL
Dewan Housing Finance Corporation Limited (DHFL) operates as a
housing finance company in India. The company's deposit products
include fixed deposit products for individuals, and trusts and
institutions; and corporate, recurring, and Wealth2Health deposits
products. It also offers home loans, which include home improvement
loans, home construction loans, home extension loans, plot
loans/land loans, plot and construction loans, and balance transfer
of home loans, as well as home loans for the self-employed; small
and medium enterprise loans, including property term, plant and
machinery, medical equipment, and business loans; mortgage loans,
such as loans against property, loan for purchase of commercial
premises, and loan through lease rental discounting; and NRI home
loans.
As reported in the Troubled Company Reporter-Asia Pacific on Dec.
5, 2019, Deccan Herald said the Mumbai bench of the National
Company Law Tribunal (NCLT) on Dec. 2, 2019, admitted a petition by
the Reserve Bank of India (RBI) seeking bankruptcy proceedings to
resolve the mortgage player Dewan Housing Finance (DHFL). The move
came in after the Reserve Bank on Nov. 29, 2019, made an
application for bankruptcy proceedings to resolve the credit and
liquidity crisis at the company, which became the first financial
sector player being sent for bankruptcy.
RBI appointed R Subramaniah Kumar as the company's administrator.
Financial creditors to DHFL have submitted claims worth INR86,892
crore against the mortgage lender, BloombergQuint disclosed.
EMERALD LANDS: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Emerald Lands (India) Private Limited
Registered office:
Office No. 217, 2nd Floor
Jaina Tower-1, District Centre
Janak Puri South West
Delhi DL 110058
IN
Insolvency Commencement Date: January 2, 2020
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: July 5, 2020
Insolvency professional: Navneet Kumar Gupta
Interim Resolution
Professional: Navneet Kumar Gupta
361, Sunview
Pocket-4, Sector-11
Dwarka, New Delhi 110075
E-mail: navneetgupta@gmail.com
ip.emeraldland@gmail.com
Classes of creditors: Class-I Allottees under real estate
projects
Insolvency
Professionals
Representative of
Creditors in a class: Vijay Kishore Saxena
Gulshan Gaba
Vivek Agrawal
Last date for
submission of claims: January 21, 2020
EON ELECTRIC: CARE Cuts Rating on INR40cr LT Loan to D, Not Coop.
-----------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of Eon
Electric Limited (EEL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term bank 40.00 CARE D; ISSUER NOT COOPERATING;
Facilities Revised from CARE C; Stable on
the basis of best available
information
Long/Short Term 55.00 CARE D; ISSUER NOT COOPERATING;
Bank Facilities Revised from CARE C; Stable;
ISSUER NOT COOPERATING/CARE A4;
ISSUER NOT COOPERATING on the
basis of best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information (NDS) from EEL to monitor the
ratings vide e-mails communications/letters dated December 31 2019,
January 2, 2020, January 6, 2020, January 8, 2020 and numerous
phone calls. However, despite CARE's repeated requests, the
company has not provided the requisite information for monitoring
the ratings. In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the best available information
which however, in CARE's opinion is not sufficient to arrive at a
fair rating. The ratings on Eon Electric Ltd's bank facilities will
now be denoted as CARE D; ISSUER NOT COOPERATING/ CARE D; ISSUER
NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Due to delay in timely repayment of debt, CARE has downgraded its
ratings on the bank facilities of EEL to 'CARE D/CARE D Issuer Not
Cooperating' from 'CARE C/CARE A4 Issuer Not Cooperating'.
EEL manufactures and markets energy-efficient lighting and other
electrical and electronic products, such as LED lights, fans, water
heaters, lithium ion batteries, mobile phone accessories, wires and
cables, and allied products. The company has two plants at
Haridwar, and a registered office at Sonepat, Haryana. It has been
listed on the Bombay Stock Exchange (BSE) since 2005, and on
National Stock Exchange (NSE) since 2012. The company has been
promoted by Mr VP Mahendru, and operations are managed by his sons,
Mr Vivek Mahendru and Mr Vinay Mahendru.
ESS DEE ALUMINIUM: CARE Maintains D Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of ESS DEE
Aluminium Ltd (EDAL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 180.00 CARE D ISSUER NOT COOPERATING,
Facilities Based on best available
Fund Based Information
Short Term 335.00 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Non Fund Based information
Facilities
Non-Convertible 30.00 CARE D; Issuer not cooperating;
Debenture Based on best available
Information
Detailed Rationale & Key Rating Drivers:
CARE has been seeking information from EDAL to monitor the
rating(s) vide e-mail communications/letters dated January 6, 2020,
January 7, 2020, January 8, 2020, January 9, 2020 and numerous
phone calls. However, despite CARE's repeated requests, the company
has not provided the requisite information for monitoring the
ratings. In the absence of minimum information required for the
purpose of rating, CARE is unable to express opinion on the rating.
In line with the extant SEBI guidelines CARE's rating on ESS DEE
Aluminium Ltd bank facilities will now be denoted as CARE D/CARE D;
ISSUER NOT COOPERATING, Based on best available information.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers:
The rating has been reaffirmed on account of the ongoing delays in
debt servicing of the company as informed by the lender.
Ess Dee Aluminum Ltd. (EDAL) was established in 2004 and is
promoted by Mr. Sudip Dutta. The company is engaged in
manufacturing of aluminum foil based high-end packaging solutions
for pharmaceuticals, FMCG and confectionery industry. The company
has pioneered manufacturing of dedicated high end Pharma packaging
products like cold form blister and child-resistant-blister
packaging in India. The product portfolio of company comprises of
aluminium strip pack foil, lid foils for Blister packs, PVC Blister
Films, Poly Vinyledene Chloride (PVDC), coated PVC- based
thermoforming solutions.
GRAN ELECTRONICS: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Gran Electronics Private Limited
171-C, 17th Floor, Mittal Court
C Wing, Nariman Point
Mumbai 400021
Insolvency Commencement Date: January 17, 2020
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: July 14, 2020
Insolvency professional: Ms. Jovita Reema Mathias
Interim Resolution
Professional: Ms. Jovita Reema Mathias
56, Inizio Building
Cardinal Gracious Road
Chakala, Andheri East
Mumbai 400099
E-mail: ip.reemajm@gmail.com
cirp.gepl@gmail.com
Last date for
submission of claims: February 6, 2020
HYDROLINA BIOTECH: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Hydrolina Biotech Private Limited
New No. 68 (Old No. 122)
Vedachalam Street
Vasudevan Nagar
Jafferkhanpet
Chennai 600083
Insolvency Commencement Date: January 20, 2020
Court: National Company Law Tribunal, Chennai Bench
Estimated date of closure of
insolvency resolution process: July 18, 2020
Insolvency professional: Ramela Rangasamy
Interim Resolution
Professional: Ramela Rangasamy
'RAJI', 3B1, 3rd Floor
Gaiety Palace, No. 1L
Blackers Road, Mount Road
Chennai 600002
Mobile: 9442617180
E-mail: rum_jai@yahoo.com
Last date for
submission of claims: February 3, 2020
J V STEEL: CARE Assigns 'B+' Rating to INR10.50cr LT Loan
---------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of J V
Steel Tubes (JVST), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 10.50 CARE B+; Stable Assigned
Short-term Bank
Facilities 2.00 CARE A4 Assigned
Detailed Rationale & Key Rating drivers
The rating assigned to the bank facilities of JVST is constrained
by low profitability margins, weak overall solvency position,
elongated operating cycle and susceptibility of margins to
fluctuations in raw material prices. The rating is further
constrained by firm's presence in highly fragmented and competitive
nature of industry and partnership nature of constitution. The
rating, however takes comfort from the experienced partners and
increasing scale of operations.
Key Rating Sensitivity
Positive Factor:
Improvement in debt coverage indicators as marked by interest
coverage and TDGCA beyond 3x and below 10x respectively
Negative Factor:
Decline in profitability margins as marked by PBILDT and PAT
margins below 2.50% and 0.50% respectively Detailed description of
the key rating drivers
Key Rating Weaknesses
Low profitability margins
The profitability margins of the firm stood low marked by PBILDT
and PAT margin of 3.43% and 0.88%, respectively, in FY19. The
PBILDT margin of the firm declined on a year-on-year basis in FY19
due to increase in raw material costs that could not be passed onto
the customers owing to firm's presence in highly competitive and
fragmented industry. Furthermore, the PAT margin remained low
during last three financial years on account of high interest
costs.
Leveraged capital structure and weak debt coverage indicators
The capital structure of the firm remained leveraged with overall
gearing ratio of 4.79x, as on March 31, 2019. The overall gearing
ratio improved from 5.68x as on March 31, 2018 mainly due to
accretion of profits to networth. Additionally, the debt coverage
indicators of the firm remained weak with the interest coverage
ratio of 1.47x in FY19 and total debt to GCA ratio of 18.94x for
FY19 (PY: 1.39x and 21.65x, respectively).
Susceptibility of margins to fluctuations in raw material prices
The main raw materials used by the firm are cold rolled coils etc.
Raw material cost is a major contributor to total operating cost,
thereby making profitability sensitive to raw material prices
mainly due to the reason that the major raw material is commodity
in nature and witnesses frequent price fluctuations. The prices of
steel are driven by international prices, apart from domestic
demand supply factors and therefore remain volatile. Thus any
adverse change in the prices of the raw material may affect the
profitability margins of the firm.
Partnership nature of constitution
JVST's constitution as a partnership firm has the inherent risk of
possibility of withdrawal of the partners' capital at the time of
personal contingency and firm being dissolved upon the
death/retirement/insolvency of partners. Moreover, partnership
firms have restricted access to external borrowing as credit
worthiness of partners would be the key factors affecting credit
decision of the lenders.
Key Rating Strengths
Experienced partners
JVST was established in 2005 and is being currently managed by Mr.
Vinod Kumar and Mr. Saurabh Gupta. Both the partners have around
three decades and fourteen years of industry experience,
respectively, gained through their association with JVST and the
other group concern, namely, Shivaji Traders. Additionally, the
partners are supported by a team of experienced and qualified
professionals having varied experience in the technical, financial
and marketing aspects of business.
Increasing scale of operations
The total operating income of the firm increased from INR38.01
crore in FY17 to INR84.24 crore in FY19 at a CAGR of 48.87% due to
higher quantity sold owing to higher orders received from its
customers. The firm has acheived total operating income of INR30.00
crore in 6MFY20 (Provisional).
Liquidity position
The operating cycle of the firm stood elongated at 79 days for FY19
(PY: 124 days). To ensure adequate raw material procurement and
timely execution of orders the firm relies on bank borrowings thus
the average utilization of working capital limit stood at ~95%
utilized for the past 12 months period ending September, 2019. The
liquidity position of the firm stood weak marked by current ratio
of 1.31x and quick ratio of 0.94x, as on march 31, 2019.
J V Steel Tubes (JVST) was established in 2005 as a partnership
firm and is currently being managed by Mr. Vinod Kumar and Mr.
Saurabh Gupta, as its partners, sharing profit and losses equally.
The firm is engaged in the manufacturing and trading of steel tubes
(income from trading constituted ~10% of the total operating income
in FY19) with a total installed capacity of 14,400 tonnes per annum
as on September 30, 2019 at its manufacturing facility located in
Ludhiana, Punjab. Besides JVST, one of the partners is also engaged
in another group concern namely, Shivaji Traders based in Ludhiana,
is a partnership firm established in 1985 and is engaged in trading
of iron and steel products.
JC WORLD HOSPITALITY: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: JC World Hospitality Private Limited
Registered office:
E-2/3, Vasant Vihar
New Delhi 110057
Project office:
Plot No. C1-K
Jaypee Greens Wishtown
Sec-128, Noida 201304
Uttar Pradesh
Insolvency Commencement Date: December 13, 2019
Court: National Company Law Tribunal, Delhi Bench
Estimated date of closure of
insolvency resolution process: June 10, 2020
(180 days from commencement)
Insolvency professional: Mr. Manish Gupta
Interim Resolution
Professional: Mr. Manish Gupta
M P R & Co.
E-62, LGF
Lajpat Nagar-II
New Delhi 110024
E-mail: ip.manishgupta31@gmail.com
irp.jcworld@gmail.com
- and -
Insolvency & Bankruptcy Board of India
(IBBI)
7th Floor, Mayur Bhawan
Shankar Market, Connaught Circus
New Delhi 110001
Classes of creditors: Allottees of Commercial Space under the
Real Estate Project (Financial Creditors)
Of the Corporate Debtor
Insolvency
Professionals
Representative of
Creditors in a class: Mr. Sunil Kumar
Mr. Sanjeet Kumar Sharma
Mr. Shashi Sharma
Last date for
submission of claims: January 1, 2020
MALLIKHARJUNA AGENCIES: CARE Keeps B+ Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of
Mallikharjuna Agencies continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 5.00 CARE B+ ISSUER NOT COOPERATING,
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from Mallikharjuna Agencies to
monitor the rating vide e-mail communications/letters dated
September 4, 2019, September 6, 2019, and November 8, 2019 and
numerous phone calls. However, despite CARE's repeated requests,
the firm has not provided the requisite information for monitoring
the rating. In the absence of minimum information required for the
purpose of rating, CARE is unable to express opinion on the rating.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of best available information which however, in
CARE's opinion is not sufficient to arrive at fair rating. The
rating on Mallikharjuna Agencies' bank facilities will now be
denoted as CARE B+;Stable; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
At the time of last rating on October 23, 2018 the following were
the rating strengths and weaknesses:
Key rating drivers
Key Rating Weaknesses
Moderate scale of operations with low networth base
The firm has a track record of around fourteen years however the
total operating income (TOI), remained moderate at INR54.27 crore
in FY17 with low net worth base of INR4.72 crore as on March 31,
2017 as compared to other peers in the industry.
Thin profitability margins due to trading nature of operations
The profitability margins of the firm were fluctuating during
review period due to increase in scale of operations. However the
firm has thin profitability margins due to trading nature of
business operations and highly competitive and fragmented industry
due to presence of large number of players. The PBILDT & PAT
margins of the firm are fluctuating in the range of 1.67% -2.42%
and 0.61%-0.63% respectively due to the trading nature of
business.
Weak debt coverage indicators
The firm has weak debt coverage indicators during review period.
The total debt /GCA was seen fluctuating during the review period.
The same deteriorated from 6.31x in FY15 to 10.11x in FY16 due to
increase in short term debt at the back of utilization for working
capital requirements. However, the same improved to 9.05x in FY17
due to increase in GCA The interest coverage deteriorated from
2.75x in FY15 to 2.44x in FY16 due to increase in interest cost.
Further improved to 9.04x in FY17 due to decrease in PBILDT level
coupled decrease interest cost.
Working capital intensive nature of operations
The firm is operating in working capital intensive nature of
business. Though, the working capital cycle of the firm increased
from 36 days in FY15 to 44 days in FY17. The average collection
period stood at 71 days during FY17 as against 68 days in FY15, on
account of better debt realization from the customers. Further, the
firm has to maintain inventory for the display of wide variety of
customers. Resultantly, the inventory holding period stood at 18
days. The firm made an average cash credit utilization of 80% for
the 12 month period ended July 31, 2018 in order to meet its
working capital needs.
Geographical concentration risk
The liquor products trading by MA are being supplied to
distributors located in Puducherry. Due to the geographic
concentration of the firm's supplies to a single state, any changes
in the government rules and regulations in terms of liquor sale may
affect the firm's revenues.
Constitution of entity as the partnership firm
The firm being a partnership firm is exposed to inherent risk of
capital withdrawal by partners due its nature of constitution. Any
substantial withdrawals from capital account would impact the net
worth and thereby the gearing levels. The partner's infusion the
capital of INR0.60 crore in FY17.
Highly competitive and fragmented nature of business
The firm is engaged into the business of trading of products where
the profitability margins comparing to other industry will be low.
Apart from that there are numerous organized and unorganized
players entering into the market which makes the industry
competitive nature.
Key Rating Strengths
Reasonable track record of the firm and experienced management
Mallikharjuna Agencies was established in the year 2000 by Mr.
Ashok Kumar Reddy (Managing Partner) along with his son Mr. A.
Kamlesh Kumar Reddy (Partner). Mr. Ashok Kumar Reddy have more than
four decades and his son has more than one decade of experience in
similar line of business and their long standing marketing
experience has establish healthy relationship with suppliers and
dealers.
Growth in total operating income
The total operating income of the firm grew at Compounded Annual
Growth Rate (CAGR) of 10.16% i.e., from INR44.73 crore in FY15 to
INR54.27 crore in FY17 due to increase in product portfolio like
Whisky, Rum. Furthermore, during FY18 (Provisional), the firm has
achieved a total operating income of INR47.38 crore.
Comfortable capital structure
The firm has comfortable capital structure during review period.
The debt-equity stood below unity for the past three years from
March 31, 2015 to March 31, 2017. The overall gearing ratio of the
firm has deteriorated from 0.65x as on March 31, 2015 to 0.97x as
on March 31, 2016 due to high utilization of working capital bank
borrowings. However it is improved to 0.82x as on March 31, 2017
due to moderate tangible networth coupled with low debt levels. The
firm mainly utilizes working capital facilities to manage day to
day operations. The average utilization of fund based working
capital limits of the firm was utilized (80%) during the last 12
months period ended July 31, 2018.
Positive demand prospect of distilleries
Extra Neutral Alcohol (ENA) is the key raw material for IMFL
(Indian made Foreign Liquor) manufacturers, the IMFL segment,
comprising 36% of the Indian alcoholic beverages industry. As India
has huge youth population, the demand of alcohol would remain high
in the coming years. Pan-India, the undivided AP and Tamil Nadu
accounted for the highest share of 21 per cent share in the IMFL
space, followed by Karnataka with 18 per cent. These three
geographies account for a major 60 per cent of the total IMFL sales
in the country. State division has given a fresh boost to the IMFL
market, which otherwise has seen marginal growth in the last couple
of years, as the scope for market expansion has been created for a
variety of reasons. In the present scenario, both AP and Telangana
may together bypass Tamil Nadu to become the largest IMFL market in
the country.
Incorporated in August 10 2004, Mallikharjuna Agencies (MA) was
promoted by Mr. Ashok Kumar Reddy (Managing Partner) and Mr.
Kamlesh Kumar Reddy (Partner). The firm is engaged in the wholesale
trading of wines (MGM Wine & Spirits, 5000 super premium,
Troubadour megma etc.,).the firm purchases the products from
companies like Privilege Industries Limited and etc and sells the
same to dealers located in Puducherry.
MIRAJ METALS: CARE Maintains 'D' Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Miraj
Metals continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 8.00 CARE D ISSUER NOT COOPERATING,
Facilities Based on best available
Fund Based Information
Long-Term/Short 42.00 CARE D/CARE D; ISSUER NOT
term Bank COOPERATING; Based on best
Facilities available information
Non-Fund based
Detailed Rationale & Key Rating Drivers:
CARE has been seeking information from Miraj Metals to monitor the
rating(s) vide e-mail communications/letters dated January 6, 2020,
January 7, 2020, January 8, 2020, January 9, 2020 and numerous
phone calls. However, despite CARE's repeated requests, the company
has not provided the requisite information for monitoring the
ratings. In the absence of minimum information required for the
purpose of rating, CARE is unable to express opinion on the rating.
In line with the extant SEBI guidelines CARE's rating on Miraj
Metals bank facilities will now be denoted as CARE D/CARE D; ISSUER
NOT COOPERATING, Based on best available information.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers:
The rating has been reaffirmed on account of the ongoing delays in
debt servicing of the company as informed by the lender.
Established in 2010 by Mr. Hiten Mehta, Miraj Metals is a supplier
of non-ferrous metals scrap in India, which it imports entirely
from the Middle East countries. The Middle East suppliers, in turn,
provide the scrap materials at discounted rates to the entity for
making the same available to the Indian market. Its group concern,
Miraj Recyclers Private Limited (MRPL), incorporated in April 2013,
procures majority of its raw material requirements from Miraj
Metals.
MIRAJ RECYLERS: CARE Maintains 'D' Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Mehta,
Miraj Recyclers Private Limited (MRPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 3.00 CARE D ISSUER NOT COOPERATING,
Facilities Based on best available
Fund Based Information
Long-Term/Short 12.00 CARE D/CARE D; ISSUER NOT
term Bank COOPERATING; Based on best
Facilities available information
Non-Fund based
Detailed Rationale & Key Rating Drivers:
CARE has been seeking information from MRPL to monitor the
rating(s) vide e-mail communications/letters dated January 6, 2020,
January 7, 2020, January 8, 2020, January 9, 2020 and numerous
phone calls. However, despite CARE's repeated requests, the company
has not provided the requisite information for monitoring the
ratings. In the absence of minimum information required for the
purpose of rating, CARE is unable to express opinion on the rating.
In line with the extant SEBI guidelines CARE's rating on Miraj
Recylers Pvt Ltd bank facilities will now be denoted as CARE D/CARE
D; ISSUER NOT COOPERATING, Based on best available information.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers:
The rating has been reaffirmed on account of the ongoing delays in
debt servicing of the company as informed by the lender.
Incorporated in April 2013 by Mr. Hiten Mehta and Mrs Harita Mehta,
Miraj Recyclers Private Limited (MRPL) is a supplier of non-ferrous
metals scrap of copper, aluminum and iron, and is also engaged in
the manufacturing of aluminum ingots & copper wire rods. The
company procures majority of its raw material requirements from its
group concern; Miraj Metals. The scrap, after procurement, is
bifurcated into aluminum, copper and iron, of which the recyclable
aluminum and copper is used to manufacture aluminum ingots and
copper wire rods respectively, whereas the non-recyclable metals
scrap is sold off in the market. The company has its recycling
facility located in Bhavnagar, Gujarat.
MODI TELECOMMUNICATIONS: Insolvency Resolution Case Summary
-----------------------------------------------------------
Debtor: Modi Telecommunications Limited
14th Floor, Signature Tower A
South City, NH-8
Gurgaon, Haryana 122001
Insolvency Commencement Date: January 24, 2020
Court: National Company Law Tribunal, Delhi Bench
Estimated date of closure of
insolvency resolution process: July 22, 2020
Insolvency professional: Atul Mittal
Interim Resolution
Professional: Atul Mittal
174, BALCO Apartments
Plot No. 58, IP Extn.
Patparganj, Delhi 110092
E-mail: a.mittalmc@gmail.com
ip.amittal@gmail.com
Last date for
submission of claims: February 7, 2020
MUKTAR AUTOMOBILES: CARE Cuts INR11.88cr Loan Rating to D, Non-Coop
-------------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Muktar Automobiles Private Limited (MAPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term bank 11.88 CARE D; ISSUER NOT COOPERATING;
Facilities Revised from CARE B+; Stable
on the basis of best available
information
Short term bank 3.00 CARE D; ISSUER NOT COOPERATING;
facilities Revised from CARE A4 on the
basis of best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from MAPL to monitor the
rating(s) vide e-mail communications dated January 9, 2020 and
numerous phone calls. However, despite CARE's repeated requests,
the company has not provided the requisite information for
monitoring the ratings. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of the best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating. The rating on Muktar Automobiles Private
Limited bank facilities will now be denoted as CARE D; ISSUER NOT
COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The revision in the ratings assigned to the bank facilities of
Muktar Automobiles Private Limited (MAPL) takes into account
ongoing delays in servicing its debt obligation.
Detailed description of the key rating drivers
Key Rating Weaknesses
Delays in debt servicing
Due to stressed liquidity there have been delays in debt servicing.
Timely servicing of debt obligations is key rating
monitorable.
Muktar Automobiles Private Limited (MAPL) incorporated in May 2011
is an authorized dealer of passenger vehicles (PV) segment for
Mahindra & Mahindra Limited (MML; rated CRISIL AAA/Stable CRISIL
A1+, reaffirmed on October 4, 2019). MAPL is based out of Goa and
is engaged in the sale of new cars, servicing of the vehicles and
sale of the spare parts and accessories for MML. MAPL currently
operates out of five facilities in Goa and one in Mangalore.
PIONEER GLOBEX: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: M/s. Pioneer Globex Private Limited
C/o Mahalaxmi Atta Mill Compound
Opp Fire Brigade Station
Nirmal Nagar, Bhavnagar 364001
Gujarat
Insolvency Commencement Date: January 20, 2020
Court: National Company Law Tribunal, Ahmedabad, Gujarat Bench
Estimated date of closure of
insolvency resolution process: July 17, 2020
(180 days from commencement)
Insolvency professional: Sunil Kumar Agarwal
Interim Resolution
Professional: Sunil Kumar Agarwal
Tower 6/603, Devnandan Heights
Near Podar School
New CG Road
Chandkheda, Ahmedabad
Gujarat 382424
E-mail: anil91111@hotmail.com
- and -
202, Sakar III
Near C U Shah College
Income Tax Circle
Ahmedabad 380014
E-mail: cirp.pioneerglobex@gmail.com
Last date for
submission of claims: February 7, 2020
POGGENAMP NAGARSHETH: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: Poggenamp Nagarsheth Powertronics Private Limited
C-1/B 4402 PH-IV GIDC Estate
Vatva, Ahmedabad
Gujarat 382445
- and -
205, 207, 2nd Floor, Mauryansh Elanza
Shyamal Cross Road, Satellite
Ahmedabad, Gujarat 380015
Insolvency Commencement Date: January 22, 2020
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: July 19, 2020
Insolvency professional: Sachin Dinkar Bhattbhatt
Interim Resolution
Professional: Sachin Dinkar Bhattbhatt
A-103, Yogiraj Villa 2
Behind ISCON Heights
Kunal Cross Roads
Gotri-Laxmipura Road
Gotri, Vadodara
Gujarat
E-mail: sachin.bhattbhatt@gmail.com
- and -
212, Atlantis K 10
B Tower, Opp. Honest Restaurant
Near Genda Circle
Sarabhai Road
Vadorada 390007
Gujarat
Last date for
submission of claims: February 6, 2020
POPULAR STORES: CARE Maintains 'B' Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Jodhpur
(Rajasthan) based Popular Stores (PPS) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 6.42 CARE B ISSUER NOT COOPERATING,
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from Popular Stores to monitor
the rating(s) vide e-mail communications/letters dated September
12, 2019, October 15, 2019, November 5, 2019, November 25, 2019,
December 10, 2019, December 18, 2019, January 1, 2020 and numerous
phone calls. However, despite CARE's repeated requests, the firm
has not provided the requisite information for monitoring the
ratings. In line with the extant SEBI guidelines, CARE has reviewed
the rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. Further, Popular Stores has not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. The
rating on Popular Stores's bank facilities will now be denoted as
CARE B; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
At the time of last rating on December 21, 2018 the following were
the rating strengths and weaknesses.
Key Rating Weakness
Modest scale of operation with thin profitability margins
Total Operating Income (TOI) has shown fluctuating trend during
past three financial years ended FY18. During FY18, TOI has
declined by 22.86% over FY17 and stood moderate at INR21.36 crore
owing to decline in demand from customers during the year. Till
October 31, 2018, PPS's has achieved a turnover of INR14.00 crore.
Further, in FY18, profitability margins has also decline and stood
moderate with PBILDT and PAT margin of 5.57% and 0.53% respectively
as against 9.17% and 2.44% respectively in FY17 due to increase in
cost of traded goods. Furthermore, the GCA level has declined and
stood at INR0.11 crore in FY18.
Weak solvency position
The capital structure of PPS remained weak with an overall gearing
of 6.95 times as on March 31, 2018, improved from 13.08 times as on
March 31, 2017 owing to accretion of profits to reserve. Further,
the debt service coverage indicators of the firm also stood weak
with total debt to GCA 218.93 times as on March 31, 2018,
deteriorated from 33.50 times as on March 31, 2017 due to higher
proportionate decline in GCA level and increase in total debt of
the firm. Further, interest coverage stood moderate at 1.10 times
in FY18, declined from 1.36 times in FY17.
Stressed liquidity position
PPS operations are highly working capital intensive in nature as
reflected by elongated operating cycle of 169 days in FY18 declined
from 125 days in FY17 mainly due to higher collection period from
debtors. The current ratio and quick ratio stood moderate at 2.70
times and 2.47 times respectively as against 3.96 times and 3.41
times respectively in FY17. The firm has utilized 90-95% of its
working capital limit in past 12 months ended October 31, 2018. It
has cash and bank balance of INR0.13 crore as on March 31, 2018.
Highly fragmented and competitive nature of industry
The firm is engaged in the trading of aluminium scrap where many
players are operating in the same business with many unorganized
players and few organized players. Further, the profitability
margins of the firm will remain lower due to trading nature of
operations and its inability to pass on rise in prices to its
customers due to highly fragmented and competitive nature of the
industry. The prices of metal scrape have exhibited volatile trend
in the past and same volatility is expected to continue in future
on account of domestic and international demand scenario. Moreover,
small regional players like PPS are more susceptible to adverse
industry scenario as compared to large companies which have
advantages in terms of broad service offerings and market reach,
which give them the edge over newer entrants.
Key Rating Strengths
Vast Experience of promoters in metal industry
The firm has formed in 1997 by Mr Noor Mohammad has vast experience
in metal industry. He has more than fifty years of experience in
metal industry and looks after overall affairs of the firm.
Previous to formation of the firm Mr Noor, was engaged in the same
line of business with their father. Further, the firm is supported
by a team of qualified professionals who have significant
experience in this sector.
Jodhpur (Rajasthan) based Popular Stores (PPS) was formed in 1997
as proprietorship concern by Mr Noor Mohammed. PPS is engaged in
the business of wholesale trading of ferrous and non-ferrous metal
scrap includes aluminum, brass, copper, lead, radiators, steel and
zinc. The firm purchase goods from registered and un-registered
dealers from local market in Jodhpur and sell it in local market in
Jodhpur, Jaipur and Agra (Uttar Pradesh).
R. K. AND COMPANY: CRISIL Migrates B+ Rating to Not Cooperating
---------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of R. K. and
Company (RKC) to 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Export Packing 12 CRISIL A4 (ISSUER NOT
Credit COOPERATING; Rating Migrated)
Proposed Long Term 8 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
CRISIL has been consistently following up with RKC for obtaining
information through letters and emails dated October 30, 2019 and
November 22, 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 RKC, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on RKC 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 RKC to 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
Incorporated in the year 1986 as a proprietorship firm, R K and
Company (RKC), is promoted by Mr R K Tondon. RKC is engaged in
engaged in manufacturing and exporting of designer handbags,
scarfs, shoes and other fashion accessories for both men & women.
RAJ KISHORE: CRISIL Migrates B+ Rating to Not Cooperating
---------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Raj Kishore
Engineering Constructions Private Limited (RKECPL) to 'CRISIL
B+/Stable/CRISIL A4 Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 3 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Bank 2 CRISIL B+/Stable (ISSUER NOT
Guarantee COOPERATING; Rating Migrated)
Proposed Cash 6 CRISIL B+/Stable (ISSUER NOT
Credit Limit COOPERATING; Rating Migrated)
CRISIL has been consistently following up with RKECPL for obtaining
information through letters and emails dated October 30, 2019 and
December 26, 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 RKECPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on RKECPL 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 RKECPL to 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
RKECPL was set up in 2010, by Mr S Rajasekaran. The company
undertakes civil construction projects, related to industrial
buildings, RCC roads, towers, chimneys and other related works.
RAM ENGINEERS: CRISIL Migrates 'D' Rating to Not Cooperating
------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Ram Engineers
and Contractors (REC) to 'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.3 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Long Term Loan 1.0 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Overdraft 4.0 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Long Term 3.7 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
CRISIL has been consistently following up with REC for obtaining
information through letters and emails dated January 6, 2020 and
January 10, 2020 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 REC, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on REC 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 REC to 'CRISIL D Issuer not cooperating'.
Established in 2010 as a proprietorship concern by Mr. Sethuraman,
REC carries out civil construction in Chennai.
REACH SEAMLESS: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Reach Seamless Limited
39, Shakespeare Sarni Premlata Building
6th Floor Kolkata
WB 700017
IN
Insolvency Commencement Date: January 8, 2020
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: July 5, 2020
Insolvency professional: CA. Sonu Jain
Interim Resolution
Professional: CA. Sonu Jain
Poddar Court, Gate No. 2
Room No. 327, 3rd Floor
18 Rabindra Sarani
Kolkata 700001
E-mail: casonujain@gmail.com
crp.reachseamless@gmail.com
Last date for
submission of claims: January 21, 2020
REVIVE CONSTRUCTION: CRISIL Withdraws D Rating on INR100cr Loans
----------------------------------------------------------------
CRISIL has withdrawn its ratings on the bank facilities of Revive
Construction Company India Private Limited (RCIPL) on the request
of the company and receipt of a no objection certificate from its
bank. The rating action is in line with CRISIL's policy on
withdrawal of its ratings on bank loans.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 35 CRISIL D (ISSUER NOT
COOPERATING; Rating Withdrawn)
Overdraft 65 CRISIL D (ISSUER NOT
COOPERATING; Rating Withdrawn)
CRISIL has been consistently following up with RCIPL for obtaining
information through letters and emails dated August 28, 2018,
September 28, 2018 and July 29, 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 they are arrived at without any management
interaction and are 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 RCIPL. This restricts CRISIL's
ability to take a forward RCIPL 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 rating on bank facilities of RCIPL
continues to be 'CRISIL D/ CRISIL D Issuer Not Cooperating'.
Set up in 2009, by Mr. Abdul Rahuman Nasarudeen and his family,
RCIPL undertakes civil construction works, related to laying and
repair of roads. It is head quartered in Thiruvananthapuram,
Kerala.
SENIOREETAA DESIGNER: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: Senioreetaa Designer Ensembles Pvt Ltd
1A Gorkey Terrace
1st Floor Kolkata
West Bengal 700017
Insolvency Commencement Date: January 23, 2020
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: July 21, 2020
Insolvency professional: Ajay Kumar Agarwal
Interim Resolution
Professional: Ajay Kumar Agarwal
Plot No. 11D/31/1
Street No. 1111, PS Qube
Unit Number 1015A, 10th Floor
Beside City Centre 2
Kolkata 700135
E-mail: es.aaa2014@gmail.com
irp.senioreetaa@gmail.com
Last date for
submission of claims: February 6, 2020
SEYA INDUSTRIES: CARE Maintains 'D' Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Seya
Industries Limited (SIL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 509.95 CARE D ISSUER NOT COOPERATING,
Facilities Based on best available
Information
Short term Bank 6.00 CARE D; ISSUER NOT COOPERATING
Facilities
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from SIL to monitor the ratings
vide e-mail communications and numerous phone calls. However,
despite CARE's repeated requests, SIL has not provided the
requisite information for monitoring the ratings. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating. The rating on Seya
Industries Limited's bank facilities will now be denoted as CARE
D/CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The ratings take into account the continued delays in servicing of
debt obligations on the back of poor liquidity. Establishing a
track record of timely servicing of debt would be a key rating
sensitivity.
Detailed description of the key rating drivers
At the time of last rating on October 15, 2019, the following were
the rating weaknesses:
Key Rating Weaknesses
Ongoing delays in debt servicing
The debt servicing of SIL has been irregular in the recent past as
indicated by overutilization of its working capital limits for over
30 days and delays in payment of debt servicing oblgations towards
its term loans.
Time overrun in ongoing capex
SIL has been undertaking the capex for expansion of its
manufacturing facilities. The scope of capex was revised in past
and project has ran into time overruns.
Liquidity- Poor
Significantly high working capital utilization indicating poor
liquidity position for SIL. This has also restrained the ability of
SIL to service its debt obligations in a timely manner.
Incorporated in 1990 as Sriman Organic Chemical Industries Private
Limited, Seya Industries Limited (SIL) is engaged in manufacturing
of benzene based organic chemicals, viz., mono chloro benzene
(MCB), para nitro chloro benzene (PNCB), ortho nitro chloro benzene
(ONCB), 3,3 di chlorobenzidine (3,3 DCB), 2,4 di nitro chloro
benzene (2,4 DNCB) and para nitro aniline (PNA) and by-products
like sulphuric and hydrochloric acid which find application in
pharmaceutical, dyes, agrochemical , fertilizer and rubber
industries. The manufacturing facility is located at Tarapur,
Boisar (Maharashtra).
SHRI BALAJI: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Shri Balaji Betel Nuts Private Ltd.
208, 2nd Floor, EMCA House
23/23-B, Ansari Road
Darya Ganj, New Delhi 110002
Insolvency Commencement Date: January 16, 2020
Court: National Company Law Tribunal, Delhi Bench
Estimated date of closure of
insolvency resolution process: July 13, 2020
Insolvency professional: Vikram Singh Rathore
Interim Resolution
Professional: Vikram Singh Rathore
B 138 Vinoba Bhave Nagar
Amrapali Marg, Vaishali
Jaipur 302021
E-mail: vikram.nimbli@gmail.com
- and -
Shri Balaji Betel Nuts Private Ltd.
208, 2nd Floor, EMCA House
23/23-B, Ansari Road
Darya Ganj, New Delhi 110002
Last date for
submission of claims: January 30, 2020
SHRISTI PLYWOOD: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Shristi Plywood Private Limited
Registered office:
Vijay Vihar, Silokhra Road
Gurgaon, Haryana 122001
India
Insolvency Commencement Date: November 21, 2019
Court: National Company Law Tribunal, Chandigarh Bench
Estimated date of closure of
insolvency resolution process: May 19, 2020
(180 days from commencement)
Insolvency professional: Ravi Sethia
Interim Resolution
Professional: Ravi Sethia
KPMG Restructuring Services LLP
8th Floor, Building No. 10
Tower C, DLF Cyber City
Phase II, Gurgaon 122002
India
E-mail: ravisethia@kpmg.com
Last date for
submission of claims: January 23, 2020
SKYHIGH INFRAPROJECTS: Insolvency Resolution Process Case Summary
-----------------------------------------------------------------
Debtor: M/s. Skyhigh Infraprojects Private Limited
Gomti Plaza, 2nd Floor
Vikas Khand-1, Gomti Nagar
Lucknow, UP 226010
Insolvency Commencement Date: January 7, 2020
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: July 5, 2020
Insolvency professional: Amarpal
Interim Resolution
Professional: Amarpal
Office No. 401
DDA Building-2, Distt Centre
Janakpuri, New Delhi 110058
E-mail: amarpal@icai.org
Office No. 705, Pragati Tower
Rajendra Place
New Delhi 110008
E-mail: cirp.skyhigh@gmail.com
- and -
The Insolvency & Bankruptcy Board of
India (IBBI)
7th Floor, Mayur Bhawan
Shankar Market, Connaught Circus
New Delhi 110001
Classes of creditors: Allotee under real estate project
Insolvency
Professionals
Representative of
Creditors in a class: Mr. Bharat Bhushan Garg
Mr. Kailash Chander Jain
Mr. Satender Kumar
Last date for
submission of claims: January 21, 2020
SONALI ENERGEES: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Sonali Energees Private Limited
C-208, Belgium Chambers
Opp. Linear Bus Stand
Ring Road, Surat 395003
Insolvency Commencement Date: January 13, 2020
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: July 21, 2020
Insolvency professional: Mr. Omkarchand Rikhabdas Maloo
Interim Resolution
Professional: Mr. Omkarchand Rikhabdas Maloo
403, 4th Floor, Shaival Plaza
Near Hopes Neurocare Hospital
Gujarat College Road
Ellisbridge, Ahmedabad 380006
E-mail: omkar@ormaloo.com
ipsonalienergees@gmail.com
Last date for
submission of claims: February 6, 2020
SRI DHANALAKSHMI: CRISIL Migrates 'B+' Rating to Not Cooperating
----------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Sri
Dhanalakshmi Traders (SDT) to 'CRISIL B+/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Long Term Loan 0.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Long Term
Bank Loan Facility 2.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL has been consistently following up with SDT for obtaining
information through letters and emails dated January 6, 2020 and
January 10, 2020 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 SDT, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SDT 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 SDT to 'CRISIL B+/Stable Issuer not cooperating'.
Established as a partnership firm in 1999 and based in East
Godavari (Andhra Pradesh), SDT is engaged in milling and processing
of paddy into rice, rice bran, broken rice and husk. The day-to-day
operations are managed by Mr. M V Srinivasa Reddy.
SRK GROUP: CARE Maintains D Rating in Not Cooperating Category
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of SRK Group
continues to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 41.09 CARE D ISSUER NOT COOPERATING,
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from SRK Group to monitor the
rating vide e-mail communications/letters dated August 27, 2019;
December 26, 2019; December 31, 2019; January 6, 2020 and numerous
phone calls. However, despite CARE's repeated requests, the firm
has not provided the requisite information for monitoring the
ratings. In line with the extant SEBI guidelines, CARE has reviewed
the rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. Further, SRK Group has not paid the surveillance fees for
the rating exercise as agreed to in its rating agreement. The
rating on SRK Group's bank facilities will now be denoted as CARE
D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating assigned to the facilities of SRK Group (SRK) continues
to take into account delays in servicing debt obligations on
account of stressed liquidity position.
Detailed description of the key rating drivers Key Rating Weakness
At the time of last rating on December 6, 2018 the following was
the rating weakness:
Delay in debt servicing due to stressed liquidity: Due to change in
the project scope, time & cost overrun and lower than envisaged
booking status, the liquidity position of the firm was impacted
resulting in delay in servicing its debt obligations.
SRK Group (SRK) is a partnership firm constituted in September 2012
to develop a residential cum commercial project 'Mansarovar' near
Kamrej in Surat - Gujarat. It is a partnership amongst three
partners sharing equal profits to jointly develop the project. The
project is envisaged to be developed on 7.94 Lakh square feet
(lsft) land owned by SRK and have total estimated saleable area of
around 13.88 lsft.
UMANG REALTECH: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Umang Realtech Private Limited
Registered and Corporate office:
D-64, Second Floor
Defence Colony
New Delhi 110024
Insolvency Commencement Date: August 22, 2019
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: February 18, 2020
Insolvency professional: Manish Kumar Gupta
Interim Resolution
Professional: Manish Kumar Gupta
404, 4th Floor, Laxmideep Building
Laxmi Nagar District Centre
Vikas Marg, Delhi 110092
E-mail: manishvivek@yahoo.com
mail.insolvencyteam@gmail.com
Classes of creditors: Allottees under Real Estate Project
Others
Insolvency
Professionals
Representative of
Creditors in a class: Mr. Sanjeev Gupta
307, Laxmideep Building
Laxmi Nagar, New Delhi 110092
E-mail: fcasanjeev@gmail.com
Ms. Preeti Jaiswal
A 3/312, Milan Vihar Apartment
IP Extension, Delhi 110092
E-mail: capreetigoyal@gmail.com
Mr. Vinnet Gupta
408, Laxmideep Building
Laxmi Nagar, New Delhi 110092
E-mail: vineetsinghalco@hotmail.com
Ms. Nisha Malpani
D-190, Rosewood City
Rosewood Villa
Sector-50, Gurgaon
Haryana 122018
E-mail: nisha.malpani@outlook.com
Mr. Anil Kumar Jain
Flat No. 255B, IInd Floor Block A-1
Near Central School
Lawrence Road
Kesahv Puram, New Delhi
NCT of Delhi 110035
E-mail: aniljn@yahoo.com
Mr. Sapan Mohan Marg
C-585, Basement, #94
New Delhi 110024
E-mail: sapan10@yahoo.com
Last date for
submission of claims: September 7, 2019
=================
I N D O N E S I A
=================
ASURANSI JIWASRAYA: Parent in Talks w/ Foreign, Domestic Investors
------------------------------------------------------------------
The Jakarta Post reports troubled state-owned insurer PT Asuransi
Jiwasraya is seeing interest from four potential investors over the
purchase of its subsidiary as it hopes to stay afloat after failing
to pay out hundreds of millions dollars on customer policies that
matured.
According to the report, Jiwasraya president director Hexana Tri
Sasongko said on Jan. 29 that the insurance company had received
interest from four investors, both domestic and international, over
the purchase of Jiwasraya Putra.
"We're currently in the last due diligence process with our
potential investors," the report quotes Hexana as saying after a
hearing with the House of Representatives Commission VI overseeing
state-owned enterprises. He declined to go into detail about the
potential investors.
Jiwasaraya had yet to reveal the amount and value of the Jiwasraya
Putra stake that would be offered to investors as the matter was
still being finalized as of today, he added, The Jakarta Post
relays.
According to The Jakarta Post, four state-owned firms, pawnshop PT
Pegadaian, train operator PT Kereta Api Indonesia, Bank Tabungan
Negara (BTN) and Telkom subsidiary PT Telekomunikasi Seluler
(Telkomsel), have committed to cooperating with Jiwasraya Putra to
help the subsidiary sell insurance products to its customers.
"Jiwasraya Putra has its own captive market because we already have
commitments with four other state-owned companies," Hexana, as
cited by The Jakarta Post, said.
The Jakarta Post says the sale of the subsidiary is also meant to
help Jiwasraya pay for its policyholders' claims, which are
projected to reach INR16 trillion (US$1.1 billion).
Another option that was being considered by the government to
rescue Jiwasraya was the formation of a state holding company for
state-owned insurers, which could inject fresh funds into the
ailing state insurer, said State-Owned Enterprises Minister Erick
Thohir, The Jakarta Post relays.
"The most important thing is customer protection and measures that
can provide a solution for customers, including one in March, will
be taken. The most important thing is that customers will get
certainty,” Erick told reporters.
An earlier plan was to establish a state holding company for
state-owned insurers by February to kick start efforts to help
Jiwasraya's customers, the report notes.
The case is now being investigated by the Attorney General's Office
and Supreme Audit Agency (BPK) for corruption allegations with a
potential "systemic impact" on the nation's financial industry, The
Jakarta Post adds citing the BPK.
=====================
P H I L I P P I N E S
=====================
RB OF LORETO: Deposit Insurance Claims Deadline Set Feb. 14
-----------------------------------------------------------
The Philippine Deposit Insurance Corporation (PDIC) urged
depositors of the closed Rural Bank of Loreto (Surigao del Norte),
Inc. to file their deposit insurance claims on or before the last
day for filing of claims for insured deposits on February 14, 2020
either through mail addressed to the PDIC Public Assistance
Department, 6th Floor, SSS Bldg., 6782 Ayala Avenue corner V.A.
Rufino Street, Makati City, or personally during business hours at
the PDIC Public Assistance Center, 3rd Floor, SSS Bldg., at 6782
Ayala Avenue corner V.A. Rufino Street, in Makati City.
The PDIC Charter provides that depositors have until two years from
bank takeover to file their deposit insurance claims. Rural Bank of
Loreto (Surigao del Norte), Inc. was ordered closed by the Monetary
Board (MB) of the Bangko Sentral ng Pilipinas on Feb. 9, 2018.
According to PDIC, deposit insurance claims for 695 deposit
accounts with aggregate insured deposits amounting to PhP1.85
million have yet to be filed by depositors. Data show that as of
November 30, 2019, PDIC had paid depositors of the closed Rural
Bank of Loreto (Surigao del Norte), Inc. the total amount of PhP3.5
million, corresponding to 63.5% of the bank's total insured
deposits amounting to PhP5.5 million.
In filing claims personally, depositors are required to submit
their original evidence of deposit and present one (1) valid
photo-bearing ID with signature of the depositor. It is
recommended, however, to bring at least two (2) valid IDs in case
of discrepancies in signature. Depositors may also file claims
through mail and enclose their original evidence of deposit and
photocopy of one (1) valid photo-bearing ID with signature together
with a duly accomplished Claim Form which can be downloaded from
the PDIC website, www.pdic.gov.ph.
Depositors who are below 18 years old should submit either a
photocopy of their Birth Certificate issued by the Philippine
Statistics Authority (PSA) or a duly certified copy issued by the
Local Civil Registrar. Representatives of claimants are required to
submit an original copy of a notarized Special Power of Attorney of
the depositor or parent of a minor depositor. The Special Power of
Attorney template may be downloaded from the PDIC website.
Depositors who have been notified of their documentary deficiencies
through official letters from PDIC are requested to comply with the
indicated requirements. The procedures and requirements for the
filing of deposit insurance claims are posted in the PDIC website,
www.pdic.gov.ph.
Meanwhile, depositors with balances of more than the maximum
deposit insurance coverage (MDIC) of PhP500,000 who were not able
to file their claims on April 24, 2018, the deadline earlier set,
should file their claims with the Regional Trial Court, Branch 30,
Surigao City where the Petition for Assistance in the Liquidation
(PAL) of Rural Bank of Loreto (Surigao del Norte), Inc. is pending
under Sp. Proc. No. 8574. Likewise, depositors who will not be able
to file their deposit insurance claims on February 14, 2020 should
file their claims with said Liquidation Court. Payment of these
claims shall be subject to availability of assets of the closed
bank, legal priority and approval of the Liquidation Court.
Depositors who have outstanding loans or payables to the bank will
be referred to the duly designated Loans Officer prior to the
settlement of their deposit insurance claims. For more information,
depositors and depositor-borrowers may contact the Public
Assistance Department at telephone number (02) 8841-4141, or e-mail
at pad@pdic.gov.ph. Those outside Metro Manila may call the PDIC
toll free at 1-800-1-888-PDIC or 1-800-1-888-7342. Inquiries may
also be sent as private message at Facebook through
www.facebook.com/OfficialPDIC.
=================
S I N G A P O R E
=================
ASTORIA DEVELOPMENT: Condo Buyers to Have Priority Claims
---------------------------------------------------------
Cara Wong at The Straits Times reports that home buyers left in the
lurch after a developer went bust will now have priority claims to
their incomplete homes, ahead of other unsecured creditors like
contractors.
According to the report, the High Court has ruled that the claims
of buyers of the incomplete Sycamore Tree condominium will rank
above those of the other unsecured creditors, including contractors
who are owed money by the project's developer, Astoria Development.
Astoria is also linked to the developer of another stalled condo
development, the 70-unit Laurel Tree project in Hillview Terrace.
The "precedent setting case" made it clear that existing statutory
provisions, such as those in the Housing Developers (Control and
Licensing) Act, recognise the equitable property rights that
purchasers of uncompleted properties have, said lawyer John Sze --
johnsze@jtjb.com -- who is representing most of Sycamore Tree's
purchasers, The Straits Times relays.
"We've never really had a case where we are pitting purchasers
directly against other unsecured creditors," said Mr. Sze of law
firm Joseph Tan Jude Benny.
In a chamber hearing last month, Judicial Commissioner Mavis Chionh
said the claims of the purchasers rank above the claims of general
unsecured creditors, the report recalls. She thus allowed an
application by Astoria's receivers and managers, represented by
Rajah and Tann lawyers Lee Eng Beng and Chow Jie Ying, to complete
the project and pass the units to their owners, subject to certain
conditions, Mr. Sze, as cited by The Straits Times, said.
According to The Straits Times, KPMG Services took over the
Sycamore Tree project, a mixed-use development of 96 residential
units and 17 shop units, as receivers appointed by United Overseas
Bank (UOB) -- the project's paramount mortgagee.
But an unsecured creditor, Jay Machinery, which makes and rents
construction equipment, filed a winding-up application in August
last year against Astoria. It is owed $1.3 million by the
developer, the report discloses.
Apart from Jay Machinery, Astoria also owed its de facto main
contractor G1 Construction and related companies several millions.
Under insolvency law, the appointed liquidator could have sold the
firm's assets and paid all the unsecured creditors equally,
including home buyers, according to the proportion of debts due to
them.
The Straits Times says the application was filed to ensure that the
development could continue with its construction, so that it can be
handed over to the buyers.
Another factor that has complicated the situation is the little
money left in the development's project account, said Mr. Sze.
"If all the project monies were deemed sufficient to complete the
project, the contractors or suppliers would not need to worry about
being paid," the report quotes Mr. Sze as saying.
The Straits Times understands the Controller of Housing is still
investigating the project accounts of Sycamore Tree and Laurel Tree
for any regulatory breaches.
The Straits Times notes that UOB has offered to cover the
additional costs expected to be incurred from the completion of the
projects, the bank said in a statement last year. But the buyers
must agree to not claim their liquidated damages -- compensation
that developers must pay for delays -- against their remaining
scheduled payments for the development.
The approval of the application comes as a relief to worried
buyers, who have been waiting for their condo units for more than
three years. Both Sycamore Tree and Laurel Tree were meant to
obtain a temporary occupation permit by December 2016, the report
adds.
*********
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
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Information contained herein is obtained from sources believed
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*** End of Transmission ***