/raid1/www/Hosts/bankrupt/TCRAP_Public/200529.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, May 29, 2020, Vol. 23, No. 108
Headlines
A U S T R A L I A
AMS HOLDINGS: ASIC Succeeds in Bid to Appoint Interim Receivers
ANGEION GROUP: Second Creditors' Meeting Set for June 4
AUSTRALIAN ACADEMY: First Creditors' Meeting Set for June 5
CLIFFORD CONSTRUCTIONS: Second Creditors' Meeting Set for June 4
DALCASSIAN CONSULTING: Second Creditors' Meeting Set for June 5
NEWS CORP: Closes or Stops Printing Over 100 Australian Titles
C H I N A
FANTASIA HOLDINGS: Moody's Puts 'B3' Sr. Unsec. Rating to New Notes
IDEANOMICS INC: Signs Amendment & Waiver Agreement with Holders
IONIX TECHNOLOGY: Terminates Advisory Agreement with Maxim Group
REDCO PROPERTIES: S&P Affirms 'B' Long-Term ICR, Outlook Stable
I N D I A
AGARWAL MOTORS: ICRA Moves B+ Rating to Not Cooperating
AZIZ ENTERPRISES: ICRA Keeps 'B' INR8.0cr Debt Rating in Not Coop.
BOCHEM HEALTHCARE: ICRA Keeps D Debt Ratings in Not Cooperating
BVL INFRASTRUCTURE: ICRA Cuts INR23cr LT Loan Rating to 'D'
C P AND ASSOCIATES: Ind-Ra Puts B+ LT Issuer Rating, Outlook Stable
IMPERIAL TUBES: ICRA Keeps 'D' Debt Ratings in Not Cooperating
INDIA: May Need to Pump $20BB Into Coronavirus-Hit State Banks
J.J. AUTOMOTIVE: ICRA Withdraws B+ Rating on INR25cr Cash Loan
JAY PARVATI: ICRA Keeps 'B' Debt Ratings in Not Cooperating
JBF INDUSTRIES: Ind-Ra Affirms 'D' Long Term Issuer Rating
JBF PETROCHEMICALS: Ind-Ra Affirms 'D' Long Term Issuer Rating
MAHALAXMI COTTON: ICRA Keeps B Debt Ratings in Not Cooperating
MANGALDEEP COLD: ICRA Keeps 'B' Debt Ratings in Not Cooperating
MITTAL UDYOG: ICRA Lowers Rating on INR10cr Loan to 'B+'
NIMRA EDUCATIONAL: ICRA Keeps D Debt Ratings in Not Cooperating
PARIN GEMS: Ind-Ra Migrates D LT Issuer Rating to Non-Cooperating
PRAMUKH EXIM: ICRA Keeps 'D' Debt Ratings in Not Cooperating
S. NANDA: ICRA Keeps 'D' Debt Ratings in Not Cooperating
S.D. EDUCATION: ICRA Keeps D INR6.75cr Debt Rating in Not Coop.
SHREE JAGADAMBA: ICRA Keeps B+ Debt Rating in Not Cooperating
SHREE VISHWAKARMA: ICRA Keeps INR34.5cr Loan Rating at D, Not Coop.
SHRIMAN ENTERPRISES: ICRA Keeps B INR36cr Debt Rating in Not Coop.
V.S. ECOBLOCKS: ICRA Keeps B+ Debt Ratings in Not Cooperating
VAIDEHI ENTERPRISES: ICRA Keeps B INR5cr Debt Rating in Not Coop.
VERA INDIA: ICRA Keeps 'D' INR25cr Debt Rating in Not Cooperating
WARORA CHANDRAPUR: ICRA Cuts Rating on INR336cr Loan to 'B'
N E W Z E A L A N D
NEW ZEALAND: RBNZ Says Banks Ability to Absorb Shocks Not Unlimited
VBASE: Confirms Decision to Shed 60% of Workforce
P H I L I P P I N E S
OKADA MANILA: To Shed Over 1,000 Jobs Amid Pandemic
S O U T H K O R E A
HANATOUR SERVICES: To Dissolve Most Operations Amid Pandemic
S R I L A N K A
SRI LANKA: Needs Aid from Allies Amid Looming Debt Crunch
T H A I L A N D
THAI AIRWAYS: Appoints Board Members to Rehabilitation Body
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A U S T R A L I A
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AMS HOLDINGS: ASIC Succeeds in Bid to Appoint Interim Receivers
---------------------------------------------------------------
The Australian Securities and Investments Commission (ASIC) has
successfully applied to the Federal Court of Australia for orders
to appoint interim receivers over the assets of Mr. Chris Marco,
AMS Holdings (WA) Pty Ltd (AMS), and AMS as trustee for the AMS
Holdings Trust.
Messrs. Robert Kirman and Robert Brauer of McGrathNicol, Perth,
have been appointed to act as interim receivers (the interim
receivers).
The matter was heard on March 16, 2020, and on May 27, 2020,
Justice McKerracher handed down his decision.
In his judgment, Justice McKerracher said, "That there is a strong
need for this independent assessment is apparent from the highly
uncertain nature of the investment activities undertaken by Mr.
Marco and what appears to be a repeated failure over a lengthy
period of time to generate material returns for most investors".
"There is also a serious concern, based on ASIC's evidence, that
the pooling of investor funds without adequate record keeping has
meant that payment of some ' returns' to investors have come from
contributions made by subsequent investors such that there now
appears to be a shortfall in excess of AUD200 million between
assets held by the defendants and amounts stated to be owed to
investors".
Justice McKerracher said that the orders sought would allow interim
receivers to identify and value property available for distribution
to investors, and to preserve property in the event that such
distribution is ordered.
The appointment of interim receivers is part of ASIC's ongoing
application for final orders to wind up an alleged unregistered
managed investment scheme operated by Mr. Marco, with a date for
the hearing of the winding up application yet to be set.
The interim receivers are first required to report back to the
Court concerning the affairs of Mr. Marco and AMS by July 26,
2020.
ASIC's investigation into the conduct of Mr. Marco is ongoing.
On Nov. 1, 2018, ASIC obtained asset preservation orders over the
assets held by Mr. Marco and AMS. Since the orders were made, Mr.
Marco has made numerous applications to vary the asset preservation
orders permitting Mr. Marco to pay expenses incurred by AMS.
On Dec. 12, 2019, ASIC filed an application seeking leave (which
leave was granted by the Court today) to apply for further orders
in the Federal Court in Western Australia to wind up an alleged
unregistered managed investment scheme, and a related company,
operated by Mr. Marco. ASIC is also seeking declarations that Mr.
Marco failed to hold an Australian Financial Services Licence
(AFSL) whilst carrying on a financial services business.
ANGEION GROUP: Second Creditors' Meeting Set for June 4
-------------------------------------------------------
A second meeting of creditors in the proceedings of Angeion Group
Pty Ltd has been set for June 4, 2020, at 10:00 p.m. via Skype for
Business.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by June 3, 2020, at 4:00 p.m.
Geoffrey Trent Hancock of PKF was appointed as administrator of
Angeion Group on Feb. 14, 2020.
AUSTRALIAN ACADEMY: First Creditors' Meeting Set for June 5
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Australian
Academy of Commerce Pty. Ltd. will be held on June 5, 2020, at
10:30 a.m. at the offices of Worrells Solvency and Forensic
Accountants, Suite 1, Level 15, at 9 Castlereagh Street, in NSW.
Christopher Damien Darin of Worrells Solvency & Forensic
Accountants was appointed as administrator of Australian Academy on
May 26, 2020.
CLIFFORD CONSTRUCTIONS: Second Creditors' Meeting Set for June 4
----------------------------------------------------------------
A second meeting of creditors in the proceedings of Clifford
Constructions Pty Ltd has been set for June 4, 2020, at 11:00 a.m.
at Level 27, at 259 George Street, in Sydney, NSW, and via zoom
video conferencing.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by June 3, 2020, at 12:00 p.m.
Stewart William Free and Bradd William Morelli of Jirsch Sutherland
were appointed as administrators of Clifford Constructions on April
30, 2020.
DALCASSIAN CONSULTING: Second Creditors' Meeting Set for June 5
---------------------------------------------------------------
A second meeting of creditors in the proceedings of Dalcassian
Consulting Pty Ltd has been set for June 5, 2020, at 10:00 a.m. via
virtual meeting.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by June 4, 2020, at 4:00 p.m.
Robert Michael Kirman and Robert Conry Brauer of McGrathNicol were
appointed as administrators of Dalcassian Consulting on April 30,
2020.
NEWS CORP: Closes or Stops Printing Over 100 Australian Titles
--------------------------------------------------------------
Angus Whitley at Bloomberg News reports that Rupert Murdoch's News
Corp. will close or stop printing more than 100 regional and
community titles across Australia as it succumbs to the market
dominance of digital giants such as Facebook and Google.
Mastheads including the Sunshine Coast Daily will become digital
only from June 29 and an unspecified number of jobs will be lost,
Michael Miller, executive chairman in Australia, said in a
statement, Bloomberg relates. Dozens of smaller titles will close
including the Ipswich Advertiser and the Northern Rivers Echo.
The reductions leave some 375 journalists specifically covering
local news, he said. The business previously employed 1,200, the
Sydney Morning Herald reported.
According to Bloomberg, Mr. Miller blamed the double impact of the
coronavirus pandemic and a lack of payments from technology
platforms that profit from using News Corp. content. The closures
continue the decades-long erosion of traditional media as digital
platforms gobble up advertising spend, the report says.
News Corp.'s flagship mastheads including The Courier-Mail and The
Daily Telegraph will become more state-focused with more regional
content, Mr. Miller, as cited by Bloomberg, said. Larger regional
titles such as the Hobart Mercury and NT News will still be
printed.
News Corp. -- https://newscorp.com/ -- provides global newspaper
and book publishing, related media and information services,
integrated marketing services, digital real estate and education
services, sports programming and pay-TV distribution in Australia.
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C H I N A
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FANTASIA HOLDINGS: Moody's Puts 'B3' Sr. Unsec. Rating to New Notes
-------------------------------------------------------------------
Moody's Investors Service has assigned a B3 senior unsecured rating
to the proposed notes to be issued by Fantasia Holdings Group Co.,
Limited (B2 stable).
Fantasia plans to use the proceeds from the proposed notes to
refinance certain of its offshore existing indebtedness.
The outlook on the rating is stable.
RATINGS RATIONALE
"The proposed bond issuance will not have a material impact on
Fantasia's credit profile, given that the proceeds will mainly be
used to refinance the company's maturing debt," says Celine Yang, a
Moody's Assistant Vice President and Analyst.
Moody's expects Fantasia's leverage -- as measured by revenue to
adjusted debt -- will improve to 55%-60% in the next 12-18 months
from 49% in 2019, driven by an increase in revenue on the back of
strong contracted sales growth in the past one to two years. At the
same time, Moody's estimates the company's interest coverage -- as
measured by EBIT/interest -- will improve towards 1.5x-2.0x from
1.5x over the same period.
Fantasia's contracted sales grew 13.8% to RMB7.7 billion in the
first four months of 2020 from RMB6.8 billion in the same period
last year. Moody's expect Fantasia's sales will grow to around
RMB40 billion-RMB45 billion annually in the coming 12-18 months
from RMB36.2 billion in 2019, supported by its good sales execution
amd relatively stable housing demand in its core markets.
Fantasia's B2 corporate family rating reflects the company's (1)
long track record in property development in the Chengdu-Chongqing
Economic Zone and the Pearl River Delta; (2) diversified income
streams from its property management businesses; and (3) adequate
liquidity.
On the other hand, the B2 rating is constrained by (1) the
company's high leverage and weak interest coverage, resulting from
debt-funded growth and high-cost financing; and (2) the long
development cycles for its urban redevelopment projects.
Fantasia's liquidity position is good, supported by its sufficient
cash holdings. Moody's expects the company's cash holdings,
together with its operating cash flow, will be sufficient to cover
its maturing debt (including onshore puttable bonds) and committed
land payments over the next 12-18 months.
As of December 2019, the company's cash holdings of about RMB20.7
billion, after deducting cash held by Colour Life, covered about
1.8x of its short-term debt of RMB11.5 billion.
In terms of governance considerations, Moody's has taken into
consideration the company's concentrated ownership in Zeng Jie
Baby, who has a 57.5% stake. This factor is mitigated by the
company's established internal governance, which ensures the
disclosure of material related-party transactions as required by
companies listed on the Hong Kong Stock Exchange. Also, the
company's audit committee, remuneration committee and nomination
committee are dominated by independent non-executive directors.
Moody's regards the impact of the deteriorating global economic
outlook amid the rapid and widening spread of the coronavirus
outbreak as a social risk under its environmental, social and
governance framework, given the substantial implications for public
health and safety.
The stable outlook reflects Moody's expectation that Fantasia's
credit metrics will recover gradually in the next 12-18 months from
the current weak levels, supported by its contracted sales growth
and adequate liquidity.
Fantasia's B3 senior unsecured debt rating is one notch lower than
the company's B2 CFR due to structural subordination risk. The
subordination risk refers to the fact that the majority of
Fantasia's claims are at its operating subsidiaries and have
priority over claims at the holding company in a bankruptcy
scenario. In addition, the holding company lacks significant
mitigating factors for structural subordination. Consequently, the
expected recovery rate for claims at the holding company will be
lower.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Moody's could upgrade Fantasia's ratings if the company improves
its debt maturity profile, liquidity profile and credit metrics,
such that its (1) revenue/adjusted debt rises to 60%-70%; (2)
EBIT/interest improves to 2.5x or above, (3) cash/short-term debt
rises above 1.25x, all on a sustained basis.
On the other hand, Moody's could downgrade Fantasia's ratings if
(1) the company's contracted sales or cash collections weaken; (2)
it engages in aggressive land acquisitions or other business
acquisitions, such that its debt leverage and liquidity deteriorate
materially; (3) its refinancing and liquidity risks increase; or
(4) its credit metrics deteriorate, with EBIT/interest failing
below 1.5x over the next 12-18 months.
The principal methodology used in this rating was Homebuilding And
Property Development Industry published in January 2018.
Fantasia Holdings Group Co., Limited is a property developer in
China (A1 stable). Established in 1996, the company listed on the
Hong Kong Stock Exchange in November 2009. In addition to property
development, Fantasia is engaged in providing property operation
services, property agency services and hotel services for its own
properties and properties of third parties.
IDEANOMICS INC: Signs Amendment & Waiver Agreement with Holders
---------------------------------------------------------------
Ideanomics, Inc. entered into an amendment and waiver agreement
with each of ID Venturas 7, LLC and YA II PN Ltd. pursuant to which
the Holders agreed to limit the right to have the exercise price of
their warrants to purchase common stock of the Company and the
conversion price of their debentures issued by the Company adjusted
in connection with one or more drawdowns of up to, in the
aggregate, $3,000,000 pursuant to the Standby Equity Distribution
Agreement, dated April 3, 2020, by and between the Company and YA.
The waiver will only apply to draw downs on or before June 1, 2020
provided that in no event shall the effective net per share price
to the Company under the SEDA be less than $0.36. In consideration
for the waiver, the Company agreed to reduce the Conversion Price
of $1 million principal amount of debentures ($2 million in the
aggregate) held by each of the Holders to the lowest price per
share sold in the Financing (whether through one or more advance
notices). The Holders, in their sole discretion, by written notice
to the Company, may indicate which debentures are to be adjusted.
About Ideanomics
Ideanomics -- http://www.ideanomics.com/-- is a global company
focused on facilitating the adoption of commercial electric
vehicles and developing next generation financial services and
Fintech products. Its electric vehicle division, Mobile Energy
Global (MEG) provides financial services and incentives for
commercial fleet operators, including group purchasing discounts
and battery buy-back programs, in order to acquire large-scale
customers with energy needs which are monetized through pre-paid
electricity and EV charging offerings. Ideanomics Capital includes
DBOT ATS and Intelligenta which provide innovative financial
services solutions powered by AI and blockchain. MEG and Ideanomics
Capital provide their global customers and partners with better
efficiencies and technologies and greater access to global markets.
The company is headquartered in New York, NY, and has offices in
Beijing, China.
Ideanomics reported a net loss attributable to common stockholders
of $97.66 million for the year ended Dec. 31, 2019, compared to a
net loss attributable to common stockholders of $28.42 million for
the year ended Dec. 31, 2018. As of March 31, 2020, the Company had
$114.94 million in total assets, $61.06 million in total
liabilities, $1.26 million in series A Convertible redeemable
preferred stock, $7.15 million in redeemable non-controlling
interest, and $45.47 million in total equity.
B F Borgers CPA PC, in Lakewood, Colorado, the Company's auditor
since 2018, issued a "going concern" qualification in its report
dated March 16, 2020 citing that the Company incurred recurring
losses from operations, has net current liabilities and an
accumulated deficit that raise substantial doubt about its ability
to continue as a going concern.
Ideanomics received a letter from the Listing Qualifications Staff
of The Nasdaq Stock Market LLC on Jan. 10, 2020, indicating that
the bid price for the Company's common stock for the last 30
consecutive business days had closed below the minimum $1.00 per
share required for continued listing under Nasdaq Listing Rule
5550(a)(2). Under Nasdaq Listing Rule 5810(c)(3)(A), the Company
has been granted a 180 calendar day grace period, or until July 8,
2020, to regain compliance with the minimum bid price requirement.
IONIX TECHNOLOGY: Terminates Advisory Agreement with Maxim Group
----------------------------------------------------------------
Ionix Technology, Inc. and Maxim Group, LLC mutually agreed to
terminate all rights and obligations, except for certain
indemnification provisions, under that certain letter agreement
dated on or about Dec. 16, 2019 relating to general financial
advisory and investment banking services and the letter agreement
of even date regarding retention as underwriter in connection with
a proposed follow-on offering of securities. As a result the
Company and Maxim entered into a Settlement and Release Agreement
on May 19, 2020 granting a general mutual release of each other and
reflecting no further relationship or obligations between the
parties. Pursuant to the Agreement, Maxim agreed it will return the
pro-rata amount of common stock shares issued by the Company
pursuant to the Maxim Agreements based upon the remaining term of
the advisory services agreed upon in the Maxim Agreements.
About Ionix
Headquartered in Liaoning Province, China, Ionix Technology, Inc.
-- http://www.iinx-tech.com-- is a holding company that is
principally engaged in the photoelectric display and smart energy
industries. The company has four operating subsidiaries: Changchun
Fangguan Photoelectric Display Technology Co., Ltd, a company which
specializes in developing, designing, producing, and selling TN and
STN LCD, STN, CSTN, and TFT LCD modules as well as other related
products; Shenzhen Baileqi Electronic Technology Co., Ltd, a
company which specializes in LCD slicing, filling, researching and
designing, manufacturing and selling of LCD Modules (LCM) and PCBs;
Lisite Science Technology (Shenzhen) Co., Ltd., a company engaged
in the production of intelligent electronic devices; and Dalian
Shizhe New Energy Technology Co., Ltd., a company engaged in
photo-voltaic power generation, electric vehicles and charging
piles with corresponding operation and maintenance and three
dimensional parking.
As of March 31, 2020, Ionix had $18.35 million in total assets,
$8.22 million in total liabilities, and $10.13 million in total
stockholders' equity.
Prager Metis CPAs, LLC, in Hackensack, New Jersey, the Company's
auditor since 2018, issued a "going concern" qualification in its
report dated Sept. 30, 2019, citing that the Company has not
generated sufficient cash flow from its operating activities for
the past two years and did not have enough cash to support future
operating plan. These circumstances, among others, raise
substantial doubt about the Company's ability to continue as a
going concern.
REDCO PROPERTIES: S&P Affirms 'B' Long-Term ICR, Outlook Stable
---------------------------------------------------------------
On May 27, 2020, S&P Global Ratings affirmed its 'B' long-term
issuer credit rating on Redco Properties Group Ltd. and 'B'
long-term issue rating on the company's outstanding senior
unsecured notes.
S&P said, "We affirmed the ratings on Redco despite the company's
higher debt leverage to reflect our view that the company will
continue to expand its operating scale from a small base and
maintain stable profitability. Hence, we do not expect Redco's debt
leverage to materially increase over the next two years.
"In our view, the company's liquidity will remain adequate, given
that its increasing cash balance roughly covers its relatively
large short-term debt exposure." Its cash balance with restricted
cash of Chinese renminbi (RMB) 15 billion as of December 2019 is
almost comparable to its total debt balance of RMB17 billion. The
company has just raised US$150 million by senior note issuance to
repay the upcoming US$307 million senior note due in August 2020.
Redco's credit profile is constrained by its small scale and short
weighted average maturity (WAM) profile. S&P expects its
attributable contracted sales to reach about RMB16 billion in 2020,
which remains one of the smallest among all rated Chinese
developers. Its WAM, at about 1.5 years, is also noticeably shorter
than its peers', given that short-dated offshore financing accounts
for a portion of its capital structure.
S&P said, "We expect Redco's debt growth to remain high to support
scale expansion, with the company deploying 40%-45% of sales
receipt to land purchases.
"In our view, Redco will moderate the increase of its leverage by
improving revenue and maintaining stable profitability. We estimate
that the company's revenue will grow moderately at about 20% over
the next two years, supported by a high consolidation ratio of
above 70% of its projects. This is despite a lower attribution
ratio of contracted sales at about 50% in 2018 and 2019 due to more
joint venture projects. Redco's gross margin will remain at about
30% due to competitive land costs.
"We expect the company to continue growing its scale and diversity,
with contracted sales increasing to about RMB32 billion in 2020,
while growth in this area slows to 18%-20% from 25% in 2019. Cities
in operation increased to 25 in 2019 from 15 in 2018, while the
number of projects rose to 89 by end-2019 from 56 in 2018.
"We believe Redco's leverage, as measured by debt to EBITDA, will
remain high at 6.0x-6.5x in 2020 and 2021, similar to its level of
6.3x in 2019, but significantly increased from 5.0x in 2018. Hence,
we revised our financial risk assessment on the company to highly
leveraged from aggressive, to reflect Redco's expansion appetite
and the related increase in leverage. We also revised our
comparable rating analysis modifier to neutral from negative,
because we believe the company's scale and other aspects are
similar to its peers'.
"The stable outlook is based on our expectation that Redco will
continue to expand its operating scale and maintain stable
profitability such that debt leverage will remain at current levels
over the next one to two years. In our base case, we expect the
company's debt-to-EBITDA ratio to stay at 6.0x-6.5x in the same
period.
"We could lower the ratings on Redco if the company's
debt-to-EBITDA ratio stays above 6.5x without signs of improvement.
This could happen if: (1) Redco's debt-funded expansion is more
aggressive than we expect; (2) the company's contracted sales fall
substantially below our estimate; or (3) Redco's project delivery
slips such that expansion and revenue are significantly lower than
our forecast.
"We could also lower the ratings if the company's liquidity
significantly worsens, with liquidity sources falling below uses by
1.2x, or if Redco faces difficulties with refinancing to tackle its
large short-term debt maturities.
"We could raise the ratings if Redco continues to substantially
expand its operating scale as well as improve its project and
geographic diversity such that its market position will be
comparable to that of 'B+'-rated peers.
"At the same time, the company would also need to have sustainably
stable leverage, with debt to EBITDA below 5x, and further
improvement of WAM consistently above 2.0x."
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AGARWAL MOTORS: ICRA Moves B+ Rating to Not Cooperating
-------------------------------------------------------
ICRA has moved rating for INR43.8-crore bank facility of Agarwal
Motors (Prop. of Concord Tie-up Private Limited) to the 'Issuer Not
Cooperating' category. The rating is now denoted as [ICRA]B+
(Stable) ISSUER NOT COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 43.80 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; Rating revised
from [ICRA]BB (Negative) and
moved to 'Issuer Not
Cooperating' category
ICRA has been seeking information from the entity so as to monitor
its performance. Despite repeated requests by ICRA, the entity's
management has remained non-cooperative. The current rating action
has been taken by ICRA on the basis of the best
available/dated/limited information on the issuers' performance.
Accordingly, lenders, investors and other market participants are
advised to exercise appropriate caution while using this rating as
it may not adequately reflect the credit risk profile of the
entity.
Aagrwal Motors is a unit of Concord Tie-up Private Limited (CTPL).
It is the authorised dealer for retail sales and distribution of
CVs manufactured by Tata Motors Limited (TML). CTPL started the
business of automobile dealership through Agarwal Motors, as an
authorised dealer of TML's CVs for the Satna, Rewa and Mayyar
regions of Madhya Pradesh in 2003. The authorised dealership
includes sales and service of the entire range of CVs offered by
TML in India for these districts of Madhya Pradesh. The overall
operations are looked after by the Managing Director, Mr. Neeraj
Agarwal.
AZIZ ENTERPRISES: ICRA Keeps 'B' INR8.0cr Debt Rating in Not Coop.
------------------------------------------------------------------
ICRA said rating for the INR8.00 crore bank facilities of Aziz
Enterprises continue to remain under 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]B (Stable); ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term 8.00 [ICRA]B (Stable); ISSUER NOT
Fund-based- COOPERATING; Rating Continues
Cash Credit to remain under the 'Issuer Not
cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity.
Incorporated in 1972 as a partnership firm, Aziz Enterprises is
engaged in the trading of precious gems, with product profile
including emerald and tanzanite stones with a focus on trading of
rough emerald stones. The firm has been managed by Mr. Ikramullah
and Mr. Salimullah, who have been engaged in this line of business
since 1975. However, in October 2014 Mr. Aminulla, Ms. Sugra Begum,
Ms. Yasmeen and Ms. Ghosiya Begum joined as the partners of the
firm. The firm is also a member of Gems & Jewellery Export
Promotion Corporation.
BOCHEM HEALTHCARE: ICRA Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
ICRA said rating for the INR21.72 crore bank facilities of Bochem
Healthcare Pvt. Ltd. continue to remain under 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]D/[ICRA]D;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based 16.72 [ICRA]D ISSUER NOT COOPERATING;
Limits Rating continues to remain under
'Issuer Not Cooperating' category
Non-Fund 5.00 [ICRA]D ISSUER NOT COOPERATING;
Based Limits Rating continues to remain under
'Issuer Not Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity.
Bochem Healthcare Pvt Ltd (BHPL) is incorporated in the year 2013
in Ujjain, Madhya Pradesh. BHPL is engaged in the manufacture of
formulation in various dosage forms, ie, tablets, capsules and ORS
(General group) at its WHO GMP certified facility at Nagziri,
Ujjain. Mr. Sunil Kumar Jain is the promoter of the company.
BVL INFRASTRUCTURE: ICRA Cuts INR23cr LT Loan Rating to 'D'
-----------------------------------------------------------
ICRA has downgraded the ratings on certain bank facilities of BVL
Infrastructure Private Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 23.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund Based- Rating downgraded from
TL [ICRA]B(Stable) and continues to
remain under 'Issuer Not
Cooperating' category
Long Term- 10.00 [ICRA]D ISSUER NOT COOPERATING;
Fund Based- Rating downgraded from
CC [ICRA]B(Stable) and continues
to remain under 'Issuer Not
Cooperating' category
Long Term- 4.00 [ICRA]D ISSUER NOT COOPERATING;
Unallocated Rating downgraded from
[ICRA]B(Stable) and continues
to remain under 'Issuer Not
Cooperating' category
Rationale
The rating downgrade reflects delays in Debt Servicing. The rating
is based on limited information on the entity's performance since
the time it was last rated in February 2019.
The lenders, investors and other market participants are thus
advised to exercise appropriate caution while using this rating as
the rating may not adequately reflect the credit risk profile of
the entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with BVL Infrastructure Private Limited, ICRA has been trying to
seek information from the entity so as to monitor its performance,
but despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 1, 2016, ICRA's Rating Committee has taken a rating
view based on the best available information.
BVL Infrastructure Private limited was incorporated in the year
2007, however it had been dormant all these years. During FY2016,
the company has started the project for construction of granite
processing unit at Ongole, Andhra Pradesh, spread over an area of
22.07 acres with overall production capacity of 26,00,000 sq
ft./month. BIPL would be processing and exporting granite. The
trail production has started in June 2017 and commercial production
is expected to start in September 2017. The company is planning to
process Black Galaxy, Jet Black, Steel Grey, Black Pearl, Moon
White, River White, Iskon White variats of granite.
BVL Infrastructure Private limited is a part of the BVL Group of
Companies, conglomerate based in Ongole, Andhra Pradesh, India. The
group has major presence in tobacco processing and export,
construction, real estate and in granite quarrying, processing and
exporting.
C P AND ASSOCIATES: Ind-Ra Puts B+ LT Issuer Rating, Outlook Stable
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned C P and Associates
Private Limited (CPAPL) a Long-Term Issuer Rating of 'IND B+'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR20 mil. Fund-based working capital limit assigned with IND
B+/Stable rating;
-- INR50 mil. Proposed fund-based working capital limit* assigned
with Provisional IND B+/Stable rating;
-- INR10 mil. Non-fund-based working capital limit assigned with
IND A4 rating; and
-- INR60 mil. Proposed non-fund working capital based limit*
assigned with Provisional IND A4 rating.
*The ratings are provisional and shall be confirmed upon the
sanction and execution of the loan documents for the above facility
by CPAPL to the satisfaction of Ind-Ra.
KEY RATING DRIVERS
The ratings reflect CPAPL's small scale of operations with revenue
of INR128.4 million in FY19 (FY18: INR57.1 million). The revenue
improved in FY19 due to an increase in the inflow and the execution
of orders from the company's existing contractors. The scale of
operations is constraint by the company's limited number of clients
as well as projects with major concentration in Haryana. At FYE20,
CPAPL's order book stood at about INR189 million (1.5x of the FY19
revenue) to be executed by FYE21; the management says the order
book has been affected by the ongoing lockdown but expects it to
improve by FYE21.
The ratings are constrained by CPAPL's modest and volatile
operating margins that contracted to 14.65% in FY19 (FY18: 22.11%;
FY17: 25.03%; FY16: 5.24%) due to the variability in the handling
different types of projects. The company's return on capital
employed stood at 3% in FY19 (FY18: 2%). Its credit metrics are
weak with net leverage (adjusted net debt/operating EBITDA) of
10.2x in FY19 (FY18:15.4x) and interest cover (operating
EBITDA/gross interest expense) of 2.6x (1.5x). CPAPL had high debt
of INR192.52 million at FYE19.
Liquidity Indicator - Poor: CPAPL fully utilized its fund-based
facilities over the 12 months ended March 2020. The cash flow from
operations significantly deteriorated to negative INR83.11 million
(FY18: negative INR11.02 million) due to higher working capital
requirement. Even as the company's net working capital improved to
866 days in FY19 (FY18: 2,021 days) due to a decline in the
inventory days to 501 (1,807), it was long. The inventory is high
as it comprises the constructed but unsold flats. The year-end cash
balance stood at INR0.12 million at FYE19 (FYE18: INR1.84 million).
The company has availed a moratorium for its fund-based facilities
amounting to INR2 million and also postponed the interest payment
over March-May 2020 under the Reserve Bank of India's COVID-19
regulatory package scheme.
The ratings benefit from CPAPL's directors' experience of over two
decades in the civil construction business.
RATING SENSITIVITIES
Positive: Sustained revenue growth with an improvement in the order
book position and the overall liquidity with the net leverage
remaining below 5x, along with an improvement in the working
capital cycle will be positive for the ratings.
Negative: Lower-than-expected revenue, weak order book, continued
stretch in the liquidity with further deterioration in the working
capital cycle on a sustained basis could be negative for the
ratings.
COMPANY PROFILE
CPAPL is a closely held private limited company incorporated in
2001 in Delhi and is engaged in the development of infrastructure
projects. The company worked with reputed clients including Delhi
Metro Rail Corporation, Nagpur Metro, ITD Cementation India Ltd.,
JMD Limited, etc.
IMPERIAL TUBES: ICRA Keeps 'D' Debt Ratings in Not Cooperating
--------------------------------------------------------------
ICRA said rating for the INR60.00 crore bank facilities of Imperial
Tubes Private Limited continue to remain under 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]D/[ICRA]D;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based 50.00 [ICRA]D ISSUER NOT COOPERATING;
Limit–Open Rating continues to remain under
Cash Credit 'Issuer Not Cooperating' category
Non-Fund 5.00 [ICRA]D ISSUER NOT COOPERATING;
Based–Bank Rating continues to remain under
Guarantee 'Issuer Not Cooperating' category
Non-Fund 5.00 [ICRA]D ISSUER NOT COOPERATING;
Based–Inland Rating continues to remain under
Letter of 'Issuer Not Cooperating' category
Credit
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity.
Incorporated in 1978, ITPL is currently engaged in the
manufacturing of electric resistance welded (ERW) black pipes with
an installed capacity of 120,000 metric tonnes per annum (MTPA).
The manufacturing facility of the company is located in Howrah,
West Bengal. The company is being managed by the two directors Mr.
Pratik Sharma and Mr. Manish Sharma, who had taken over the
business from the original promoters in December 2013. The pipes
manufactured by the company have varied applications like
irrigation, water supply, sewerage system, fabrication,
construction activity, idlers/ conveyors, water wells (casing
pipes) etc.
INDIA: May Need to Pump $20BB Into Coronavirus-Hit State Banks
--------------------------------------------------------------
Reuters reports that India may need to inject up to INR1.5 trillion
($19.81 billion) into its state-owned lenders as their pile of
soured assets is expected to double during the coronavirus
pandemic, three government and banking sources said.
Reuters relates that the government initially considered a budget
of around 250 billion rupees for bank recapitalisations but that
has risen significantly, a senior government source with direct
knowledge of the matter said, with loan defaults likely to rise as
businesses take a severe hit from nationwide lockdowns to tackle
the coronavirus.
"The situation is very grim," the source said, adding that banks
would require fresh funds soon, Reuters relays.
All the sources asked not to be identified as the discussions are
private, Reuters notes.
The capital plans were still being discussed and a final decision
could be taken in the second half of the fiscal year, a second
government source said. India's fiscal year runs from April 1.
According to Reuters, Indian banks were already saddled with
INR9.35 trillion of non-performing assets at the end of September
2019, or roughly 9.1% of their total assets at the time.
Reuters reported earlier this month that bad loans would likely
rise to 18-20% of total assets by the end of the fiscal year next
March, as 20-25% of outstanding loans are considered at risk of
default.
A nationwide lockdown entering its third month is expected to lead
to a contraction in economic growth in the current financial year,
according to several global rating agencies, which have also
changed their outlook on the banking sector to negative. Economic
recovery is likely to take a long time, Reuters says.
Reuters relates that one banking source said it was unlikely the
federal government would be able to fund the entire capital
injection itself and may rely on indirect measures such as issuing
bonds as a means of recapitalisation, a method which it has used
previously.
"The amount could also be partly funded through monetisation of the
fiscal deficit by the central bank," the first government source
said, adding that finance ministry officials were in talks with the
Reserve Bank of India (RBI).
Reuters says the government has already pumped in INR3.5 trillion
to shore up state-owned banks in the last five years. India's
federal budget in February for the 2020-21 financial year made no
provision for further capital injections, with lenders encouraged
to tap capital markets to raise money instead.
Despite a fall in new loans being made because of the crisis, a
senior Indian banker said that the government wanted the banking
sector to maintain lending growth of at least 6-7% for this
financial year to boost the economy, but raising money from capital
markets wasn't easy in the current environment.
"There will be a ripple effect of the slowing economy that banks
will feel and we will need capital to sustain and grow," he said,
relays Reuters.
J.J. AUTOMOTIVE: ICRA Withdraws B+ Rating on INR25cr Cash Loan
--------------------------------------------------------------
ICRA has withdrawn the ratings on certain bank facilities of J.J.
Automotive Ltd (JJAL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 13.25 [ICRA]B+ (Stable) ISSUER NOT
Term Loan COOPERATING; Withdrawn
Fund based-
Cash Credit 25.00 [ICRA]B+(Stable) ISSUER NOT
COOPERATING; Withdrawn
Fund Based
Untied Limits 0.50 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; Withdrawn
Non-Fund (0.40) [ICRA]A4 ISSUER NOT COOPERATING;
Based Letter Withdrawn
Of Guarantee#
# Sub-limit of Cash Credit
Rationale
The ratings have been withdrawn in accordance with ICRA's policy on
withdrawal and suspension, and as desired by the company on receipt
of No Due Certificate provided by the bank. ICRA does not have
adequate information to suggest that the credit risk has changed
since the time the ratings were last reviewed.
Key rating drivers and their description
Key rating drivers have not been captured for the rating withdrawal
due to inadequacy of incremental information since the time the
ratings were last reviewed.
Liquidity position
Liquidity position has not been captured for the rating withdrawal
due to inadequacy of incremental information since the time the
ratings were last reviewed.
Rating sensitivities
Sensitivities have not been captured for the rating withdrawal due
to inadequacy of incremental information since the time the ratings
were last reviewed.
JJAL was incorporated in 1981 primarily as an auto component dealer
of various OEM's. In 1998 it became a dealer of Hyundai Motor India
Limited (HMIL) and began operations under the brand name of "Bengal
Hyundai". The company currently operates through five showrooms,
spread across Kolkata. At present, JJAL provides the majority of
its servicing facility and insurance option to its customers via
its group companies. JJAL also operates an auto component division,
which is the authorised dealer for various auto components OEM's
and has six branches located at Kolkata, Guwahati, Patna, Siliguri,
Ranchi and Cuttack.
JAY PARVATI: ICRA Keeps 'B' Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has continued the ratings for the INR6.72 crore bank
facilities of Jay Parvati Cold Storage (JPCS). The rating is now
denoted as "[ICRA]B(Stable); ISSUER NOT COOPERATING"; Rating
continues to remain under 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based- 0.20 [ICRA]B (Stable); ISSUER NOT
Cash Credit COOPERATING; Rating Continues
to remain under the 'Issuer Not
cooperating' category
Fund-based- 3.79 [ICRA]B (Stable); ISSUER NOT
Term Loan COOPERATING; Rating Continues
to remain under the 'Issuer Not
cooperating' category
Fund-based– 2.73 [ICRA]B (Stable) ISSUER NOT
Pledge Loan COOPERATING; Rating Continues
to remain under the 'Issuer Not
cooperating' category
As part of its process and in accordance with its rating agreement
with Jay Parvati Cold Storage, ICRA has been trying to seek
information from the entity so as to monitor its performance, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 1, 2016, ICRA's Rating Committee has taken a rating
view based on
the best available information.
Established in June 2014, Jay Parvati Cold Storage (JPCS) operated
a cold storage facility at Deesa in the Banaskantha district of
Gujarat. It commenced operations from February 15, 2015. The cold
storage stores potatoes, with a total stocking capacity of 153,000
bags of 50 kg each or 7,650 MT of potatoes. The firm is promoted by
Mali and Parmar families who have longstanding experience in potato
farming an trading business.
JBF INDUSTRIES: Ind-Ra Affirms 'D' Long Term Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed JBF Industries
Limited's (JBF) Long-Term Issuer Rating at 'IND D (ISSUER NOT
COOPERATING)'. The issuer did not participate in the rating
exercise despite continuous requests and follow-ups by the agency.
Thus, the rating is based on the best available information.
Therefore, investors and other users are advised to take
appropriate caution while using the rating.
The instrument-wise rating actions are:
-- INR4.0 bil. Fund-based working capital limits (Long-term)
affirmed with IND D (ISSUER NOT COOPERATING) rating;
-- INR16.0 bil. Non-fund-based working capital limits (Short-
term) affirmed with IND D (ISSUER NOT COOPERATING) rating;
-- INR2.80 bil. Term loan (Long-term) due on March 2020 affirmed
with IND D (ISSUER NOT COOPERATING) rating; and
-- INR200 mil. Proposed term loan (Long-term) affirmed with
Provisional IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information.
Analytical Approach: Ind-Ra continues to take a consolidated view
of the financial and credit profiles of JBF and its subsidiary JBF
Petrochemicals Ltd ('IND D (ISSUER NOT COOPERATING)') and associate
concerns JBF RAK LLC, JBF Global Europe BVBA and JBF Bahrain SPC,
together referred to as JBF Group, to arrive at the ratings.
KEY RATING DRIVERS
The affirmation reflects the JBF group's continued delays in debt
servicing on account of significant deterioration in the group's
financial risk profile, resulting from losses in overseas
operations and sustained delays in the commencement of operations
at its purified terephthalic acid plant. Furthermore, according to
the company's latest financial statements, a consortium of lenders,
led by one of the bankers, has decided to undertake a competitive
bid process for a change in the control and management of the
company along with the settlement of outstanding debt, or only for
the settlement of an outstanding debt.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months could result in a positive rating action.
COMPANY PROFILE
JBF group is a leading producer of polyester and other related
products in the polyester value chain. Its production capacity is
about 1.9mtpa, which would increase to 3.2mtpa once the purified
terephthalic acid plant commences operations. The group operates
out of three domestic facilities, one in Gujarat and two in
Silvassa, and three international facilities, one each in the UAE,
Belgium, and Bahrain.
JBF PETROCHEMICALS: Ind-Ra Affirms 'D' Long Term Issuer Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed JBF Petrochemicals
Limited's (JBF Petro) Long-Term Issuer Rating at 'IND D (ISSUER
NOT COOPERATING)'. The issuer did not participate in the rating
exercise despite continuous requests and follow-ups by the agency.
Thus, the rating is based on the best available information.
Therefore, investors and other users are advised to take
appropriate caution while using the rating.
The instrument-wise rating action is:
-- USD416 mil. External commercial borrowings* (Long-term/Short-
term) due on April 2025 affirmed with IND D (ISSUER NOT
COOPERATING) rating.
*Including USD326.96 million sub-limit of letter of credit/bank
guarantee
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information.
Analytical Approach: Ind-Ra continues to take a consolidated view
of the financial and credit profiles of JBF Petro and its ultimate
parent, JBF Industries Limited ('IND D (ISSUER NOT COOPERATING)')
and associate concerns JBF RAK LLC, JBF Global Europe BVBA and JBF
Bahrain SPC, together referred to as JBF Group, to arrive at the
ratings.
KEY RATING DRIVERS
The affirmation reflects continued non-servicing of debt due to a
tight liquidity position, resulting from delays in the commencement
of JBF Petro's purified terephthalic acid plant.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months could result in a positive rating action.
COMPANY PROFILE
Incorporated in FY11, JBF Petro was set up to execute JBF group's
backward integration project of a 1.25mtpa purified terephthalic
acid plant in Mangalore.
MAHALAXMI COTTON: ICRA Keeps B Debt Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has continued the ratings for the INR7.56 crore bank
facilities of Mahalaxmi Cotton. The rating is now denoted as
"[ICRA]B(Stable); ISSUER NOT COOPERATING"; Rating continues to
remain under 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based– 6.00 [ICRA]B (Stable) ISSUER NOT
Cash Credit COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Fund-based– 1.56 [ICRA]B (Stable) ISSUER NOT
Term Loan COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Mahalaxmi Cotton, ICRA has been trying to seek information
from the entity so as to monitor its performance, but despite
repeated requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated
November 1, 2016, ICRA's Rating Committee has taken a rating view
based on the best available information.
Established in 2013 as a partnership firm, Mahalaxmi Cotton is
engaged in cotton ginning and pressing to produce cotton bales and
cottonseeds in its manufacturing facility located in Kadi, Gujarat
having a capacity of producing 25000 bales p.a. The firm also
carries out cottonseed crushing to produce cottonseed oil and
cottonseed oilcake in a nearby unit on lease having an input
capacity of 8000 MTPA. The firm is promoted and managed by Mr.
Kanubhai Patel, who has over 15 years of experience in cotton
ginning business, and other family members.
MANGALDEEP COLD: ICRA Keeps 'B' Debt Ratings in Not Cooperating
---------------------------------------------------------------
ICRA has continued the ratings for the INR6.95 crore bank
facilities of Mangaldeep Cold Storage (MCS). The rating is now
denoted as "[ICRA]B(Stable); ISSUER NOT COOPERATING"; Rating
continues to remain under 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based- 2.85 [ICRA]B (Stable); ISSUER NOT
Cash Credit COOPERATING; Rating Continues
to remain under the 'Issuer Not
cooperating' category
Fund Based- 4.10 [ICRA]B (Stable); ISSUER NOT
Term Loan COOPERATING; Rating Continues
to remain under the 'Issuer Not
cooperating' category
As part of its process and in accordance with its rating agreement
with Mangaldeep Cold Storage, ICRA has been trying to seek
information from the entity so as to monitor its performance, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 1, 2016, ICRA's Rating Committee has taken a rating
view based on
the best available information.
Established in May 2014, Mangaldeep Cold Storage (MCS) operated a
cold storage facility at Deesa in the Banaskantha district of
Gujarat. It commenced operations from February 20, 2015. The cold
storage stores potatoes, with a total stocking capacity of 158,000
bags of 50 kg each or 7,900 MT of potatoes. The firm is promoted by
six partners who have a longstanding experience in potato farming
as well as an established track record of operating cold storages
through their association with other cold storages in the region.
MITTAL UDYOG: ICRA Lowers Rating on INR10cr Loan to 'B+'
--------------------------------------------------------
ICRA has downgraded the ratings on certain bank facilities of
Mittal Udyog Indore Private Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 10.00 [ICRA]B+ (Stable); ISSUER NOT
Cash Credt COOPERATING Rating downgraded
from [ICRA]BB-(Stable) and
continues to remain under
'Issuer Not Cooperating'
Category
Non-fund (6.50) [ICRA]A4 ISSUER NOT COOPERATING
Based Rating continues to remain under
Interchangeable 'Issuer Not Cooperating' category
Rationale
The Long-Term rating downgrade is because of lack of adequate
information Mittal Udyog Indore Private Limited's performance and
hence the uncertainty around its credit risk. ICRA assesses whether
the information available about the entity is commensurate with its
rating and reviews the same as per its "Policy in respect of
non-cooperation by the rated entity". The lenders, investors and
other market participants are thus advised to exercise appropriate
caution while using this rating as the rating may not adequately
reflect the credit risk profile of the entity, despite the
downgrade.
As part of its process and in accordance with its rating agreement
with Mittal Udyog Indore Private Limited, ICRA has been trying to
seek information from the entity so as to monitor its performance,
but despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 1, 2016, ICRA's Rating Committee has taken a rating
view based on the best available information.
Incorporated in 2008, MUIPL is engaged in manufacturing of
aluminium utensils, circles and sheets. The manufacturing unit of
the company, located at Pitampur, Madhya Pradesh, has an installed
capacity of ~200 metric tons per month. The company is a part of
Mittal Group which was established in 1950 and is owned and managed
by the Mittal family. Initially the group was engaged in trading
of metals; later, it ventured into the manufacturing of aluminium
utensils through the establishment of a partnership firm- 'Mittal
Udyog' at Indore.
NIMRA EDUCATIONAL: ICRA Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
ICRA said ratings for the INR39.00-crore bank facilities of Nimra
Educational Society Continues to remain under 'Issuer Not
Cooperating' category'. The ratings are denoted as "[ICRA]D
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 35.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund Based- Rating Continues to remain under
TL the 'Issuer Not Cooperating'
category
Long Term- 4.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund Based- Rating Continues to remain under
CC the 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.
NES was set up in 1991 by Dr. Mohammed Vizarath Rasool Khan under
the Andhra Pradesh Societies Registration Act, 1350 Fasli. The
society operates four colleges in and around Vijayawada in Andhra
Pradesh, offering varied courses, such as Bachelor of Technology,
Bachelor of Pharmacy, Master of technology, Master of computer
application, Master of pharmacy and Master of business
administration. Currently, NES operates two engineering colleges,
one pharmacy college, and one business Management College, with
total student strength of 1584. All the colleges are affiliated to
the Jawaharlal Nehru Technical University, Kakinada (Andhra
Pradesh).
PARIN GEMS: Ind-Ra Migrates D LT Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Parin Gems'
Long-Term Issuer Rating to the non-cooperating category. The issuer
did not participate in the rating exercise despite continuous
requests and follow-ups by the agency. Therefore, investors and
other users are advised to take appropriate caution while using
these ratings. The rating will now appear as 'IND D (ISSUER NOT
COOPERATING)' on the agency's website.
The instrument-wise rating action is:
-- INR204.5 mil. Fund-based working capital limit (long-
term/short-term) migrated to non-cooperating category with
IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May
17, 2019. Ind-Ra is unable to provide an update, as the agency does
not have adequate information to review the ratings.
COMPANY PROFILE
Parin Gems is a partnership firm engaged in the cutting and
polishing of diamonds. It is promoted by the Surat-based Moradia
family.
PRAMUKH EXIM: ICRA Keeps 'D' Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA said ratings for the INR15.00 crore bank facilities of Pramukh
Exim Pvt. Ltd. continue to remain under Issuer Not Cooperating
category. The rating is denoted as '[ICRA]D/[ICRA]D ISSUER NOT
COOPERATING'; Rating continues to remain under 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based- 5.00 [ICRA]D; ISSUER NOT COOPERATING;
Cash Credit- Rating Continues to remain under
the 'Issuer Not cooperating'
category
Non-Fund 10.00 [ICRA]D; ISSUER NOT COOPERATING;
based-Bill Rating Continues to remain under
Discounting the 'Issuer Not cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis dated information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity.
Incorporated in 2009, Pramukh Exim Private Limited (PEPL) exports
salt in various countries such as South Korea, Bangladesh, China,
USA etc. Pramukh International was established as a proprietorship
concern of Mr. Pushpendra Thakker in 2004. It was subsequently
converted a closely held private limited company in the year 2009.
Mr. Shambhu Humbal and Mr. Puspendra Thakkar are the key promoters
of the company and are engaged in the day to day operation of the
business.
S. NANDA: ICRA Keeps 'D' Debt Ratings in Not Cooperating
--------------------------------------------------------
ICRA said the ratings for the INR16.00 crore bank facilities of S.
Nanda Industries Pvt. Ltd. continue to remain under Issuer Not
Cooperating category. The rating is denoted as '[ICRA]D ISSUER NOT
COOPERATING'; Rating continues to remain under 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 12.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund Based- Rating Continues to remain under
Cash Credit the 'Issuer Not Cooperating'
category
Long Term 4.00 [ICRA]D; ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain under
the 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis dated information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity.
SNIPL, promoted by Mr Sudhir Nanda in 1992, is engaged in the
business of manufacturing and trading of cotton yarn, polyester
fibre, recycled fibre and knitted yarn. Most of the sales (~98%) of
the company are from trading operations. The company also
manufactures fancy yarn at its own manufacturing capacities located
in Ludhiana which has 39 machines with total capacity of 800-900
tonnes per annum.
S.D. EDUCATION: ICRA Keeps D INR6.75cr Debt Rating in Not Coop.
---------------------------------------------------------------
ICRA said rating for the INR6.75 crore bank facilities of S.D.
Education Trust continue to remain under 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based 6.75 [ICRA]D ISSUER NOT COOPERATING;
Limits Rating continues to remain under
'Issuer Not Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity.
Incorporated in 2012, S.D. Education Trust (SDET) is a single asset
trust which runs and operates 'Shanti Asiatic School' in Jaipur,
Rajasthan. The school is located on a land parcel of 2.3 acres in a
housing project 'Suncity Township' in Jaipur, Rajasthan. The
aforementioned land was purchased by Navsarjan Projects Pvt. Ltd (a
company floated by trustees of SDET) from Suncity Projects Pvt.
Ltd, which was subsequently given on lease to SDET, with lease
rentals amounting to Rs 9 lac per annum. Shanti Asiatic is a
Gujarat based chain of schools promoted by the Chiripal group,
which is also one of the trustee members of SD Education Trust.
SHREE JAGADAMBA: ICRA Keeps B+ Debt Rating in Not Cooperating
-------------------------------------------------------------
ICRA said ratings for the INR55.00 crore bank facilities of Shree
Jagadamba Agrico Exports Private Limited continue to remain under
'Issuer Not Cooperating' category. The rating is now denoted as
"[ICRA]B+ (Stable)/[ICRA]A4; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.00 [ICRA]B+ (Stable); ISSUER NOT
Fund Based- COOPERATING; Rating Continues
Cash Credit to remain under the 'Issuer Not
cooperating' category
Short Term- 50.00 [ICRA]A4; ISSUER NOT
Fund Based COOPERATING; Rating continues
to remain in 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis dated information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity.
SJPL originally started operations in the year 1965 as a
partnership firm under the name of "Matu Ram Kedar Nath Rice Mill"
at Gohana, Haryana which was later renamed as "Shree Jagdamba Rice
and General Mills" in 1981. The firm was converted into a private
limited company in 2010. The company is engaged in milling,
processing and selling of various varieties of Basmati rice. The
company exports primarily to countries such as Iran, Iraq, Saudi
Arabia, UAE, Yemen and Kuwait.
SHREE VISHWAKARMA: ICRA Keeps INR34.5cr Loan Rating at D, Not Coop.
-------------------------------------------------------------------
ICRA said rating for the INR34.50 crore bank facilities of Shree
Vishwakarma Builders continue to remain under 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER
NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-Term 34.50 [ICRA]D ISSUER NOT COOPERATING;
Fund based Rating continues to remain under
Term Loan 'Issuer Not Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity.
SVB is a partnership firm incorporated in October 2012 with
fourteen partners registered at Kanker Khera, Meerut, Uttar
Pradesh. The firm is promoted by Mr. Parminder Tewatia, Ms.
Ravindri Devi and Mr. Arjun Singh. SVB launched a project "Green
Paradise" in Modipuram, Meerut and completed the same in February
2017. The project comprises a saleable area of 3.11 million sq. ft.
and consists of 63 plots, 130 duplex and 26 G+2 floors. The project
cost for INR80.0 crore is funded by INR34.50 crore of bank debt,
INR25.52 crore of promoter's contribution and INR19.98 crore of
customer advances.
SHRIMAN ENTERPRISES: ICRA Keeps B INR36cr Debt Rating in Not Coop.
------------------------------------------------------------------
ICRA said rating for the INR36.00 crore bank facilities of Shriman
Enterprises continues to remain under 'Issuer Not Cooperating'
category. The rating is now denoted as "[ICRA]B (Stable); ISSUER
NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 36.00 [ICRA]B (Stable; ISSUER NOT
Fund Based- COOPERATING; Rating Continues
Term Loan to remain under the 'Issuer Not
cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis dated information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity.
Constituted in 2015, SE is a partnership firm that is setting up a
150-bedded multi-speciality hospital in Jalandhar (Punjab). All the
four partners of the firm are qualified doctors having relevant
experience across different medical fields.
V.S. ECOBLOCKS: ICRA Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA said ratings for the INR30.00 crore bank facilities of V.S.
Ecoblocks Private Limited to remain under Issuer Not Cooperating
category. The long-term rating is denoted as [ICRA]B+(Stable)
ISSUER NOT COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 13.65 [ICRA]B+ (Stable); ISSUER NOT
Fund Based- COOPERATING; Rating Continues
TL to remain under the 'Issuer Not
cooperating' category
Long Term- 3.00 [ICRA]B+ (Stable); ISSUER NOT
Fund Based- COOPERATING; Rating Continues
CC to remain under the 'Issuer Not
cooperating' category
Long Term- 13.35 [ICRA]B+ (Stable); ISSUER NOT
Unallocated COOPERATING; Rating Continues
to remain under the 'Issuer Not
cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis dated information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity.
V.S. Ecoblocks Private Limited (VEPL) was incorporated in August
2012 and has set up a manufacturing unit of AAC bricks with an
installed capacity of 118,000 Cu.mt/Annum in Nawabpet village near
Nandigama, Krishna District, Andhra Pradesh. The primary raw
material for AAC blocks are cement, lime, aluminum, fly ash, coal,
aluminum powder and gypsum. The initial estimated total cost of the
project is around Rs 24.97 crore which was to be funded by Rs 5.00
crore of equity, Rs 6.32 crore unsecured loans and Rs 13.65 crore
of term loans. However, the project cost has been reduced to around
Rs 20.50 crore and is funded by Rs 11.50 crore term loans and Rs
9.00 crore promoter's contribution. The company sells AAC blocks
under the brand name "EKOBLOCKS" . The firm is part of the group
which also owns V S Engineering Private Limited.
VAIDEHI ENTERPRISES: ICRA Keeps B INR5cr Debt Rating in Not Coop.
-----------------------------------------------------------------
ICRA has continued the ratings for the INR5.00 crore bank
facilities of Vaidehi Enterprises. The rating is denoted as
"[ICRA]B(Stable); ISSUER NOT COOPERATING"; Rating continues to
remain under 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based- 5.00 [ICRA]B (Stable; ISSUER NOT
Cash Credit COOPERATING; Rating Continues
to remain under the 'Issuer Not
cooperating' category
As part of its process and in accordance with its rating agreement
with Vaidehi Enterprises, ICRA has been trying to seek information
from the entity so as to monitor its performance, but despite
repeated requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated
November 1, 2016, ICRA's Rating Committee has taken a rating view
based on the best available information.
Incorporated in July 2014 by Mr. Suresh Goyal and Mr. Ajay
Bhaootra, Vaidehi Enterprises (VE) is engaged in themarketing of
high end women's dress material in tier I and tier II cities. The
firm commenced commercial operations in December 2014. The firm's
products include sarees and dress materials. While it procures grey
cloth from the local market, it outsources the dyeing & printing
activities and embroidery work to local units and utilises the
premises of its group company for the finishing work and for
despatching to wholesalers/distributors.
VERA INDIA: ICRA Keeps 'D' INR25cr Debt Rating in Not Cooperating
-----------------------------------------------------------------
ICRA said ratings for the INR25.00 crore bank facilities of Vera
India Limited continue to remain under Issuer Not Cooperating
category. The rating is denoted as '[ICRA]D ISSUER NOT
COOPERATING'; Rating continues to remain under 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 25.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund Based- Rating Continues to remain under
Cash Credit the 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis dated information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity.
VIL was incorporated in July 2013 with Mrs. Sita Rani, Mr. Vijay
Kumar and Mr. Rakesh Kumar as its promoters. The company began
operations in August 2013 and is engaged in trading of tea, cotton
and mustard seeds, cakes and oil. The company operates out of its
office situated at Muktsar, Punjab, in the same area as the group's
other manufacturing companies- Vijay Oil Mills and Vijay Agro Foods
Pvt Ltd.
WARORA CHANDRAPUR: ICRA Cuts Rating on INR336cr Loan to 'B'
-----------------------------------------------------------
ICRA has downgraded the ratings on certain bank facilities of
Warora Chandrapur Ballarpur Toll Road Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 336.00 [ICRA]B (Stable); ISSUER NOT
Fund Based COOPERATING; Rating downgraded
TL from [ICRA]BB (Stable) and
continues to remain under
'Issuer Not Cooperating'
Category
Rationale
The rating has been downgraded because of lack of adequate
information regarding Warora Chandrapur Ballarpur Toll Road
Limited's performance and hence the uncertainty around its credit
risk. ICRA assesses whether the information available about the
entity is commensurate with its rating and reviews the same as per
its "Policy in respect of noncooperation by the rated entity". The
lenders, investors and other market participants are thus advised
to exercise appropriate caution while using this rating as the
rating may not adequately reflect the credit risk profile of the
entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with Warora Chandrapur Ballarpur Toll Road Limited, ICRA has been
trying to seek information from the entity so as to monitor its
performance, but despite repeated requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with SEBI's Circular No.
SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's Rating
Committee has taken a rating view based on the best available
information.
Warora Chandrapur Ballarpur Toll Road Limited (WCBTRL is a Special
Purpose Vehicle (SPV) incorporated for the purpose of undertaking
4-laning of the 63.6 km stretch between Warora and Ballarpur in
Maharashtra for the Public Works Department (PWD), Government of
Maharashtra (GoM) on Design-Build-Finance-Operate-Transfer (DBFOT)
basis. WCBTRL is held 55% by Nagpur-based infrastructure developer
Vishvaraj Infrastructure Limited (VIL); 35% by IL&FS Transportation
Networks Limited (ITNL, rated [ICRA]D INC) and 10% by Diva Media
Private Limited. The Concession Agreement (CA) between WCBTRL and
PWD, GoM was signed in March 2010 and under the terms of the CA
WCBTRL is entitled to collect tolls from users of the project road.
The concession is valid for a period of 30 years from the appointed
date (January 3, 2011).
=====================
N E W Z E A L A N D
=====================
NEW ZEALAND: RBNZ Says Banks Ability to Absorb Shocks Not Unlimited
-------------------------------------------------------------------
Bloomberg News reports that New Zealand's central bank warned that
the coronavirus pandemic presents a significant challenge to the
country's financial institutions, which could be stressed by
failing businesses and loan defaults.
While the financial system entered the crisis in good shape, "it's
capacity to absorb shocks is not unlimited," the Reserve Bank said
in its semi-annual Financial Stability Report published on May 27
in Wellington.
"Covid-19 has caused a fundamental change to the viability of
businesses in many sectors of the economy and credit impairments
will rise significantly," the RBNZ, as cited by Bloomberg, said.
"Initial results from stress tests suggest banks will be able to
absorb losses associated with a broad range of adverse scenarios.
However, there are limits to this resilience, and banks' capital
positions could come under stress if the downturn in economic
activity is more severe or prolonged than expected."
According to Bloomberg, New Zealand appears to have succeeded in
stamping out with virus by closing its border and imposing one of
the strictest lockdowns in the world, but the measures will take a
toll on the economy. The RBNZ projects an almost 10% decline in
annual gross domestic product this year, the steepest slump "in at
least 160 years."
"The associated losses in income will cause financial distress for
a significant number of households and businesses," Bloomberg
quotes Nick Tuffley, chief economist at ASB Bank in Auckland, as
saying. "Consequently, the RBNZ expects business failures and
household income pressures to result in increased loan losses in
the banking sector."
Rising unemployment will put some households under financial
stress, which could be accentuated by falling house prices, the
RBNZ said May 27.
"The current economic downturn could bring a significant
correction" in the housing market, it said. "With the ratio of the
median house price to median income near an all-time high, a major
correction would test the resilience of households and lenders."
It said commercial property is vulnerable, and a prolonged economic
slump will put downward pressure on rents and lead to increases in
vacancy rates.
"Current development pipelines also indicate that an above-average
volume of retail and accommodation space is due to be delivered
over the next 12 months in the Auckland and Queenstown markets,"
the RBNZ said. "Demand may therefore struggle to keep pace with
this increased supply, and the viability of some commercial
property loans will be called into question."
Agriculture had fared relatively well but was also vulnerable.
"Lending to the agriculture sector is a key concentration of risk
for the banking system, accounting for around 13% of bank lending,
of which around two thirds is to the dairy sector," it said. "The
sector is vulnerable to income shocks given its dependence on
global commodity prices, and pockets of dairy lending have yet to
recover from the 2015 downturn."
Still, the financial system was "well positioned" to weather the
economic impacts of the pandemic, the RBNZ said. "While there
remains considerable uncertainty about the economic outlook, stress
tests suggest that banks can withstand a broad range of adverse
scenarios while retaining sufficient capital to continue lending."
VBASE: Confirms Decision to Shed 60% of Workforce
-------------------------------------------------
Tina Law at Stuff.co.nz reports that Christchurch events and venue
company Vbase has confirmed it will make 49 staff redundant -- 60
per cent of its permanent workforce.
According to Stuff, the Christchurch City Council-owned company
said the redundancies were a direct result of it losing 100 per
cent of its events revenue since March 17 and the forecast slow
recovery of the sector over the next 12 to 18 months.
As well as owning and running the Christchurch Town Hall and
Horncastle Arena, Vbase also manages Orangetheory Stadium in
Addington, Hagley Oval, and the Wigram Air Force Museum on behalf
of other owners.
Vbase announced its intention earlier this month and confirmed the
lay-offs on May 27.
In a statement, the company said some changes were made to the
original proposal, resulting in the retention of some additional
roles and the disestablishment of others, Stuff relates.
Stuff says the company had originally proposed to disestablish 45
roles and possibly another nine following a selection process. The
final outcome confirmed 49 redundancies, representing 60 per cent
of permanent staff.
All casual staff and 34 full and part-time roles have been
retained, the report notes.
"We are grateful for the consideration given to the change proposal
by all staff. We recognise their professional engagement in the
process and support of the company and each other under such
challenging circumstances."
Management would now start preparing for a staged re-opening of
venues under Covid-19 Alert Level 1.
According to Stuff, Vbase hosted 374 events at its venues in the 12
months to June last year, earning it NZD18.2 million in revenue.
But it still posted a NZD15.2 million loss, predominantly due to a
blow-out in the cost of repairs to the Town Hall.
As of December the company was on track to record a NZD3.1 million
loss in the current year -- a significant improvement on the
NZD39.2 million lost in 2013-14, Stuff adds.
=====================
P H I L I P P I N E S
=====================
OKADA MANILA: To Shed Over 1,000 Jobs Amid Pandemic
---------------------------------------------------
The Japan Times reports that a luxury hotel and casino in Metro
Manila under the Japanese gaming group Universal Entertainment
Corp. will let go of more than 1,000 employees, due to losses from
the coronavirus pandemic, an internal document showed.
The Japan Times relates that Okada Manila President Takashi Oya
said in an email sent to employees the previous day that
retrenchment affecting a third of the resort's workforce is needed
for the business to remain viable, the report relates.
Okada Manila, a $2.4 billion oceanfront casino-resort complex, has
suspended operations since mid-March in response to the
government's efforts to curb the spread of the new virus, according
to the report.
"Not having any revenues since the lockdown has been financially
draining and caused severe losses to the company," The Japan Times
quotes Oya as saying. Those who will be laid off will receive
separation pay in accordance with Philippine labor laws, he added.
The Japan Times adds the Trade Union Congress of the Philippines,
the country's biggest labor organization, said it will extend
assistance to people affected by the layoffs.
"Some employees ask for advice on what are the mandatory separation
wages and benefits that they can get," Alan Tanjusay, the
organization's spokesman, said.
Okada Manila, a 44-hectare complex in Paranaque City that includes
two towers housing 993 hotel rooms, is operated by Universal
Entertainment via Tiger Resort, Leisure and Entertainment Inc. It
was founded by Japanese gaming tycoon Kazuo Okada.
=====================
S O U T H K O R E A
=====================
HANATOUR SERVICES: To Dissolve Most Operations Amid Pandemic
------------------------------------------------------------
Pulse News reports that South Korea's top travel agency Hanatour
Service Inc. may dissolve most of its local operations after
streamlining nearly all of its overseas businesses as it grapples
with lengthy hiatus in international travel under pandemic.
According to the report, industry sources on May 27 said Hanatour
Service may do away with most of businesses related to mainstay
travel operation among its total 15 subsidiaries based in Korea.
"Hanatour Service is examining comprehensive study on all 15
business units," the report quotes an unnamed official at Hanatour
as saying. The measure could involve liquidation or asset sale.
Pulse News says the company has 44 affiliates under its arm. It
already announced streamlining on 29 in overseas. Of them, 17 will
be liquidated and the remaining 12 including those in Vietnam,
Thailand, Beijing and London to be slimmed to liaison offices.
Pulse News notes that the move will make the first corporate
shakeup of mainstay business by a major travel agency.
The company claimed the diet aims to facilitate its transition to
an app-based travel platform, which does not require physical
offices.
Hanatour Service has recently started the trial service of Hana
Hub, its new mobile platform developed at a KRW40 billion ($32.3
million) investment.
The country's No. 1 travel agency's move will likely trigger
restructuring wave in the overcrowed travel industry.
Once the streamlining is done, the company will likely be left with
Mark Hotel for hotel business and SM Duty Free for duty-free
business. They do likely be separated in the longer run, industry
observers noted.
Mark Hotel incurred a net loss of KRW3.3 billion ($2.7 million) in
the first three months, and SM Duty Free KRW6.5 billion, Pulse News
discloses.
According to the report, the business reorganization was expected
after private equity fund IMM PE recently became its largest
stakeholder with 16.7 percent. IMM PE recommended Song Mi-sun,
managing director of Boston Consulting Group who spearheaded its
due diligence on the travel agency, to be seated as co-CEO of
Hanatour Service.
Pulse News adds that Hanatour Service reported the largest-ever
operating loss of KRW27.5 billion in the first quarter ended March
this year, more than tripled from the red numbers in
October-December before the virus outbreak and reversing from a
profit of KRW13.2 billion a year earlier. Net loss widened to
KRW34.9 billion, the report discloses.
=================
S R I L A N K A
=================
SRI LANKA: Needs Aid from Allies Amid Looming Debt Crunch
---------------------------------------------------------
Reuters reports that Sri Lanka's finances were fragile long before
the coronavirus delivered its blow, but unless the country can
secure aid from allies like China, economists say it may have to
make a fresh appeal to the IMF or default on its debt.
All the tell-tale crisis signs are there: a tumbling currency,
credit rating downgrades, bonds at half their face value,
debt-to-GDP levels above 90% and almost 70% of government revenues
being spent on interest payments alone, Reuters says.
According to Reuters, the IMF seems the obvious option -- Sri Lanka
has already asked the Fund for a 'Rapid Credit Facility' -- but
securing a new longer-term arrangement might not be straight
forward.
Reuters relates that the new government veered off its
soon-to-expire current IMF programme late last year by slashing
taxes, including VAT and the ' nation-building' tax brought in
after the island's long-running civil war in 2009.
In February, the IMF warned Colombo was set to miss its 2019
primary surplus target "by a sizable margin", and the economic
outlook has deteriorated dramatically since then, recalls Reuters.
Sri Lanka's central bank sought to allay fears of a default in a
statement last week, calling speculation "baseless" and vowing the
country will "honour all its debt service obligations in the period
ahead," according to Reuters.
External debt payments between now and December amount to $3.2
billion, Reuters discloses. Other costs could bring that up to $6.5
billion in the next 12 months, Morgan Stanley estimates, and with
FX reserves of just $7.2 billion, it has described the situation as
a ' tightrope walk'. The crunch point looks likely to be a $1
billion international sovereign bond payment due in October, the
report states.
"The market is pricing in the risk of a credit event there," said
Aberdeen Standard Investments' Kevin Daly, pointing to the recent
drop in some of country's bonds to under 50 cents on the dollar and
rise in borrowing costs to over 20%, Reuters relays. "If they were
to seek an IMF funding programme that would at least address some
concerns, but let's not forget the last fiscal measures sent the
wrong signal."
One view, dismissed by the central bank, is that delayed
parliamentary elections may have hampered decisive policymaking,
including how to navigate the economic hit from the pandemic.
Ratings firm S&P Global estimates that only recently-defaulted
Lebanon spends a larger proportion of revenue on bond interest
payments.
Add to that the hammerblow from the virus. Tourism, which accounts
for nearly 12% of the country's economy and 11% of jobs according
to World Bank, has been floored again just a year after the Easter
Sunday suicide bombing attacks, Reuters says.
Sri Lanka's sizable textiles industry has been shredded too as
global retailers shut up shop during lockdowns. Morgan Stanley
forecasts the fiscal deficit will reach 9.4% of GDP this year,
while a primary balance deficit of 3% of GDP would be more than 4
percentage points off stabilising debt levels, the report relays.
As reported in the Troubled Company Reporter-Asia Pacific on May
22, 2020, S&P Global Ratings on May 20, 2020, lowered its long-term
foreign and local currency sovereign credit ratings on Sri Lanka to
'B-' from 'B'. S&P affirmed its short-term foreign and local
currency credit ratings at 'B'. The transfer and convertibility
assessment is revised to 'B-' from 'B'. The outlook is stable. The
stable outlook reflects S&P's view that Sri Lanka still has access
to sufficient resources, including from multilateral and bilateral
partners, to meet its debt obligations over the next 12 months.
In April 2020, Fitch Ratings downgraded Sri Lanka's Long-Term
Foreign- and Local-Currency Issuer Default Ratings to 'B-', from
'B'. The Outlook is Negative.
===============
T H A I L A N D
===============
THAI AIRWAYS: Appoints Board Members to Rehabilitation Body
-----------------------------------------------------------
Reuters reports that Thai Airways International Pcl on May 27 said
it appointed board members as rehabilitation planners in a
bankruptcy court submission.
According to Reuters, the court accepted the airline's request for
bankruptcy protection earlier in the day, setting the first hearing
for August 17. It gave creditors until three days before then to
submit objections.
Reuters relates that the rehabilitation committee comprises the
flagship carrier's chairman Chaiyapruk Didyasarin, acting president
Chakkrit Parapuntakul and three newly appointed board members,
including its former CEO, Piyasvasti Amranand.
EY Corporate Advisory Services Limited will also participate, the
report says. The court's decision to agree to bankruptcy protection
prompted local rating agency TRIS to downgrade the airline's senior
unsecured debentures to default because the airline was given an
automatic stay on debt, Reuters notes.
TRIS said it would reassess the rating after there was agreement on
the rehabilitation plan, adds Reuters.
About Thai Airways
Thai Airways International PCL (BAK:THAI) --
http://www.thaiairways.co.th/-- is the national carrier of
Thailand. The company provides air transportation, freight and
mail services on domestic and international routes including Asia,
Europe, North America, Africa and South West Pacific. The Company
is a state enterprise which is controlled by the government and
partly owned by the public.
As reported in Troubled Company Reporter-Asia Pacific on May 21,
2020, Reuters said Thailand's cabinet approved a plan to
restructure troubled Thai Airways International Pcl's finances
through a bankruptcy court, the Southeast Asian country's prime
minister said on May 19. The plan for a court-led restructuring of
the national carrier replaces a previous proposal of a
government-backed rescue package that was heavily criticised in the
country.
Thai Airways posted losses every year after 2012, except in 2016.
In 2019, it reported losses of THB12.04 billion.
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2020. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
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TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
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