/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/200604.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 Thursday, June 4, 2020, Vol. 23, No. 112 Headlines A U S T R A L I A GRAND CIRCLE: First Creditors' Meeting Set for June 12 INTELLIGENT INFRASTRUCTURE: 1st Creditors' Meeting Set for June 10 MASTER QUALITY: First Creditors' Meeting Set for June 11 PATTANI PRIVATE: First Creditors' Meeting Set for June 12 QUEENSLAND NICKEL: Insolvent Before Administration, Court Rules RESIMAC TRIOMPHE 2020-2: S&P Assigns B (sf) Rating on Cl. F Notes SPEEDCAST INT'L: Davis Polk, Rapp Represent Secured Lender Group ULITHORNE WINES: First Creditors' Meeting Set for June 11 VIRGIN AUSTRALIA: Bidders Get 10-day Extension for Final Offers VIRGIN AUSTRALIA: Unions to Grill Bain Over Quick Resale Concerns H O N G K O N G CENTURY SUNSHINE: Fitch Affirms Then Withdraws B- LT IDR I N D I A ABHIBUS SERVICES: Ind-Ra Assigns B- Issuer Rating, Outlook Stable ABSOLUTE PROJECTS: Ind-Ra Affirms 'BB+' Long Term Issuer Rating ALUMILITE ARCHITECTURAL: ICRA Keeps D Debt Ratings in Not Coop. AZIZ ENTERPRISES: ICRA Keeps B INR8cr Debt Rating in Not Coop. BOCHEM HEALTHCARE: ICRA Keeps D Debt Ratings in Not Cooperating CHOICE BOARDS: ICRA Withdraws B+ Rating on INR1.0cr Loan COASTAL CONSOLIDATED: ICRA Removes D Rating from Not Cooperating CONSOLIDATED CONSTRUCTION: ICRA Keeps D Debt Ratings in Not Coop. EASHWARA SAI: ICRA Keeps B- Debt Ratings in Not Cooperating GIRIRAJ JEWELLERS: ICRA Keeps B INR6cr Debt Rating in Not Coop. IMPERIAL TUBES: ICRA Keeps 'D' Debt Ratings in Not Cooperating INFANT'S TRAVELS: ICRA Lowers Rating on INR18cr Loan to B+ J.J. AUTOMOTIVE: ICRA Withdraws 'B+' Rating on INR25cr Loan JAGDAMBAY COTSPIN: ICRA Keeps B+ Debt Ratings in Not Cooperating K. PRASAD: ICRA Keeps 'B' Debt Ratings in Not Cooperating KALLAM AGRO: ICRA Lowers Rating on INR43cr LT Loan to B+ KRISHNA TRANSNATIONAL: ICRA Cuts Rating on INR8.45cr Loan to B+ LAKSHMI BALAJI: ICRA Keeps B+ INR9.50cr Debt Rating in Not Coop. LEAPFROG ENGINEERING: ICRA Keeps C Debt Ratings in Not Coop. MEENAR INDUSTRIES: ICRA Keeps B Debt Ratings in Not Cooperating MEENAR POLYDYED: ICRA Lowers Rating on INR5.0cr LT Loan to B+ MUKESH AND CO: ICRA Lowers Rating on INR11cr LT Loan to B+ OPTICS AND ALLIED: ICRA Lowers Rating on INR4.0cr LT Loan to B+ PASOLITE ELECTRICALS: ICRA Keeps B+ INR8cr Debt Rating in Not Coop. PASUPATI FLEXIPACK: Insolvency Resolution Process Case Summary PIK STUDIOS: ICRA Keeps D INR12cr Debt Rating in Not Cooperating ROYAL POWER: ICRA Keeps B- INR6.25cr Debt Rating in Not Cooperating S.D. EDUCATION: ICRA Keeps D INR6.75cr Debt Rating in Not Coop. S.K. EXPORTS: Ind-Ra Lowers LT Issuer Rating to B+, Outlook Stable S.K. SOLVEX: ICRA Keeps B INR8.50cr Debt Rating in Not Cooperating SANMATI EDIBLE: ICRA Keeps B INR8.0cr Debt Rating in Not Coop. SATNAAM STONE: ICRA Keeps 'B' Debt Ratings in Not Cooperating SHRI RAMSWAROOP: Ind-Ra Keeps D Bank Loan Rating in NonCooperating THIRUMALA KNIT: ICRA Keeps 'B' Debt Ratings in Not Cooperating UNITED COMPOSHEETS: ICRA Keeps B Debt Ratings in Not Cooperating VISHWAKARMA BUILDERS: ICRA Keeps D INR34.50 Debt Rating in Not Coop WARORA CHANDRAPUR: ICRA Lowers Rating on INR336cr Loan to 'B' WARREN TEA: ICRA Lowers Rating on INR24cr Loan to 'B' WOMEN'S NEXT: ICRA Keeps D INR12.50cr Debt Rating in Not Coop. ZEN SHIPPING: Ind-Ra Lowers Long Term Issuer Rating to 'D' I N D O N E S I A GARUDA INDONESIA: Lays Off 180 Contract Pilots PERUSAHAAN GAS: S&P Lowers ICR to 'B+', Outlook Stable J A P A N NISSAN MOTOR: Cost of Closing Barcelona Plants Likely at EUR1.5BB M A C A U NEW COTAI: Unsecureds to Have 90% Recovery in Debt-for-Equity Plan N E W Z E A L A N D KIWI CAPITAL: S&P Reinstates Subordinated Instrument Rating at BB- MYSTERY CREEK: Waikato Wedding Venue Closes Doors S I N G A P O R E BREADTALK GROUP: To Delist from Singapore Exchange on June 5 HYFLUX LTD: Aqua Munda Now Re-assessing Offer Price HYFLUX LTD: CAD, MAS and Acra Launch Joint Probe - - - - - ================= A U S T R A L I A ================= GRAND CIRCLE: First Creditors' Meeting Set for June 12 ------------------------------------------------------ A first meeting of the creditors in the proceedings of Grand Circle Opportunities Pty Ltd will be held on June 12, 2020, at 12:30 p.m. via online video conference using Zoom Meetings. Glenn John Spooner and Barry Wight of Cor Cordis were appointed as administrators of Grand Circle on June 1, 2020. INTELLIGENT INFRASTRUCTURE: 1st Creditors' Meeting Set for June 10 ------------------------------------------------------------------ A first meeting of the creditors in the proceedings of Intelligent Infrastructure Solutions Pty Ltd will be held on June 10, 2020, at 11:00 a.m. at the offices of Cor Cordis, One Wharf Lane, Level 20, at 171 Sussex Street, in Sydney, NSW. Matthew Leslie Joiner and Bruno A Secatore of Cor Cordis were appointed as administrators of Intelligent Infrastructure on June 8, 2020. MASTER QUALITY: First Creditors' Meeting Set for June 11 -------------------------------------------------------- A first meeting of the creditors in the proceedings of Master Quality Shades Pty Ltd will be held on June 11, 2020, at 11:00 a.m. at the offices of Cor Cordis, One Wharf Lane, Level 20, at 171 Sussex Street, in Sydney, NSW. Alan Walker and Andre Lakomy of Cor Cordis were appointed as administrators of Master Quality on May 29, 2020. PATTANI PRIVATE: First Creditors' Meeting Set for June 12 --------------------------------------------------------- A first meeting of the creditors in the proceedings of Pattani Private Capital Pty Ltd will be held on June 12, 2020, at 10:30 a.m. via online video conference using Zoom Meetings. Glenn John Spooner and Barry Wight of Cor Cordis were appointed as administrators of Pattani Private on June 1, 2020. QUEENSLAND NICKEL: Insolvent Before Administration, Court Rules --------------------------------------------------------------- ABC News reports that Clive Palmer's failed Queensland Nickel refinery was insolvent in the days before administrators were called in, a judge has found. But Justice Debra Mullins dismissed the liquidators' claim against Mr. Palmer's flagship company Mineralogy, worth more than AUD100 million. According to ABC, the judgment follows a mammoth Supreme Court civil trial into Queensland Nickel's (QNI) 2016 collapse, which left 800 people out of work. "This judgment vindicates my faith in the judicial system in Queensland," ABC quotes Mr. Palmer as saying. "It's a shining example that truth and justice in the final analysis will prevail over lies and innuendo via trial-by-media. "This case has cost Mineralogy millions of dollars and I will seek compensation from James Park and Vannin Capital. "I will leave no stone unturned. I'm considering a AUD50 million action against John Park and the overseas liquidator funder Vannin Capital Operations Limited." ABC says the insolvency ruling could now attract the attention of the Australian Securities and Investments Commission. According to the report, Mr. Palmer settled the majority of the AUD200 million lawsuit last year - including agreeing to repay AUD66 million in taxpayer funds forked out for sacked worker entitlements. However, general purpose liquidators continued to pursue his companies in court in relation to other claims for creditors. ABC relates that the liquidators alleged QNI was insolvent on January 13, 2016, and had made a number of uncommercial transactions -- claims Mr. Palmer's companies denied. In her decision, Justice Mullins said QNI made "no secret of the fact" from September 2015 that the forecast fall in the nickel price was going to have an adverse impact on its liquidity. "It took a number of steps to seek financial assistance from government, creditors and financiers," her judgment said. "But [QNI] also took steps to reduce its expenditure by changing from active to reactive maintenance at the refinery, looking at redundancies of employees and providing information . . . to support Mineralogy's quest for payment of royalties in the Western Australian proceeding that would have enabled Mineralogy to provide funds by way of loan to QNI." SMH adds that Justice Mullins said the "potentiality of finance" from the China First and Waratah Coal transactions -- entered into on January 13, 2016 -- was not enough to save QNI from being found insolvent that day. She found these were uncommercial transactions and therefore "voidable". The liquidators alleged Queensland Nickel would "forgive" loans to the Mineralogy company -- totalling more than AUD100 million before its collapse. But Justice Mullins said the claims against Mineralogy could not succeed, the report relays. According to the report, Justice Mullins said she was satisfied "the loan from the joint venture companies to Mineralogy that was managed by QNI and payments made by QNI from its bank accounts to, for or at the request of Mineralogy, and recorded in that loan amount were, in fact, disbursement of the funds of Resources and Metals to Mineralogy and not QNI". Neither Mr. Palmer nor his nephew Clive Mensink, who was the sole appointed director of Queensland Nickel when it collapsed, were called to give evidence during the trial, the report notes. About Queensland Nickel Queensland Nickel was engaged in the production and marketing of nickel and cobalt. It owned and operates the Palmer Nickel and Cobalt Refinery in Queensland, Australia. It is owned by businessman and politician Clive Palmer. The Company experienced financial difficulties and Palmer sought assistance from the Queensland Government in late 2015 but was rejected. The Company's ownership was later transferred to a new company named Queensland Nickel Sales Pty Ltd in a joint venture between two of Clive Palmer's companies, QNI Resources Pty Ltd and QNI Metals Pty Ltd, with the directorship going to Palmer's nephew Clive Theodore Mesnick. On Jan. 19, 2016, the Company entered into voluntary administration. John Park, Stefan Dopking, Kelly-Anne Trenfield and Quentin Olde of FTI Consulting were appointed as voluntary administrators of the Company. FTI as administrators issued a report in early April 2106 that the Company "incurred debts of AUD771 million after going insolvent in November [2015]." On April 22, 2016, the Companies' creditors voted for liquidation. FTI went from being administrators to liquidators at the second creditors meeting in April 2016. RESIMAC TRIOMPHE 2020-2: S&P Assigns B (sf) Rating on Cl. F Notes ----------------------------------------------------------------- S&P Global Ratings assigned its ratings to eight classes of prime residential mortgage-backed securities (RMBS) to be issued by Perpetual Trustee Co. Ltd. as trustee for RESIMAC Triomphe Trust - RESIMAC Premier Series 2020-2. RESIMAC Triomphe Trust - RESIMAC Premier Series 2020-2 is a securitization of prime residential mortgages originated by RESIMAC Ltd. The ratings reflect: -- S&P's view of the credit risk of the underlying collateral portfolio, including that this is a closed portfolio, which means no further loans will be assigned to the trust after the closing date. -- S&P's view that the credit support is sufficient to withstand the stresses it applies. This credit support comprises note subordination for the rated notes and lenders' mortgage insurance on 13.4% of the loans in the portfolio, which covers 100% of the face value of these loans, accrued interest, and reasonable costs of enforcement. Credit support also comprises a turbo mechanism, whereby available excess spread is applied to the principal waterfall on and from the call-option date. -- S&P's expectation that the various mechanisms to support liquidity within the transaction, including principal draws, and a liquidity facility equal to 1.5% of the outstanding balance of the notes, are sufficient under its stress assumptions to ensure timely payment of interest. -- The extraordinary expense reserve of A$150,000, funded by RESIMAC Ltd. before closing, available to meet extraordinary expenses. The reserve will be topped up via excess spread if drawn. -- That loss of income for borrowers in the coming months due to the effects of COVID-19 might put upward pressure on mortgage arrears over the longer term. S&P recently updated its outlook assumptions for Australian RMBS in response to changing macroeconomic conditions as a result of the COVID-19 outbreak. The collateral pool at close for this transaction will not include any loans where the borrower has applied for a COVID-19 hardship payment arrangement. Nevertheless, S&P undertook additional cash-flow sensitivity analysis to assess the rated notes' sensitivity to delays in borrower payments should some loans enter hardship arrangements following the closing date. S&P Global Ratings acknowledges a high degree of uncertainty about the rate of spread and peak of the coronavirus outbreak. S&P said, "Some government authorities estimate the pandemic will peak about midyear, and we are using this assumption in assessing the economic and credit implications. We believe the measures adopted to contain COVID-19 have pushed the global economy into recession. As the situation evolves, we will update our assumptions and estimates accordingly." RATINGS ASSIGNED RESIMAC Triomphe Trust - RESIMAC Premier Series 2020-2 Class Rating Amount (A$ mil.) A1 AAA (sf) 149.50 A2 AAA (sf) 288.00 AB AAA (sf) 34.00 B AA (sf) 13.00 C A (sf) 7.50 D BBB (sf) 3.50 E BB (sf) 2.00 F B (sf) 1.25 G NR 1.25 NR--Not rated. SPEEDCAST INT'L: Davis Polk, Rapp Represent Secured Lender Group ---------------------------------------------------------------- In the Chapter 11 cases of SpeedCast International Limited, et al., the law firms of Davis Polk & Wardwell LLP and Rapp & Krock, PC submitted a verified statement under Rule 2019 of the Federal Rules of Bankruptcy Procedure, to disclose that they are representing the Ad Hoc Group of Secured Lenders. The Ad Hoc Group of Secured Lenders formed by holders of loans under that certain Syndicated Facility Agreement, dated as of May 15, 2018, by and among Speedcast and certain of its subsidiaries, the lenders party thereto, the other parties thereto and Credit Suisse AG, Cayman Islands Branch, as administrative agent, collateral agent and security trustee, some Members of which also committed to provide portions of a superpriority, secured debtor-in-possession credit facility pursuant to that certain Senior Secured Superpriority Debtor-In-Possession Term Loan Credit Agreement, dated as of April 24, 2020, by and among Speedcast, Speedcast Communications, Inc., the lenders party thereto and Credit Suisse, as administrative agent, collateral agent and security trustee. In or around February 2020, the Ad Hoc Group of Secured Lenders engaged Davis Polk to represent it in connection with the Members' holdings of Prepetition Term Loans. In April 2020, the Ad Hoc Group of Secured Lenders engaged Rapp & Krock to act as co-counsel in these Chapter 11 Cases. As of May 19, 2020, members of the Ad Hoc Group of Secured Lenders and their disclosable economic interests are: ALCENTRA NY, LLC 200 Park Avenue, 7th Floor New York, NY 10166 * $34,143,542.59 in aggregate principal amount of Prepetition Term Loans BLACK DIAMOND CAPITAL MANAGEMENT, LLC 1 Sound Shore Drive, Suite 200 Greenwich, CT 06830 * $67,330,828.26 in aggregate principal amount of Prepetition Term Loans * $20,000,000 in aggregate principal amount of Prepetition RCF Loans * $43,601,387.17 in aggregate principal amount of new money loans and commitments under the DIP Facility * $16,956,095.01 in aggregate principal amount of Roll-Up Loans CENTERBRIDGE PARTNERS, LP 375 Park Avenue, 11th Floor New York, NY 10152 * $54,564,785.47 in aggregate principal amount of Prepetition Term Loans * $4,405,925.64 in aggregate principal amount of new money loans and commitments under the DIP Facility * $1,713,415.53 in aggregate principal amount of Roll-Up Loans CRESCENT CAPITAL GROUP LP 11100 Santa Monica Boulevard, Suite 2000 Los Angeles, CA 90025 * $24,700,619.36 in aggregate principal amount of Prepetition Term Loans DOUBLELINE CAPITAL LP 333 South Grand Avenue, 18th Floor Los Angeles, CA 90071 * $13,205,299.97 in aggregate principal amount of Prepetition Term Loans GOLDENTREE ASSET MANAGEMENT, LP 300 Park Avenue New York, NY 10022 * $28,493,869.00 in aggregate principal amount of Prepetition Term Loans INVESCO SENIOR SECURED MANAGEMENT, INC. 1166 Avenue of the Americas, 26th Floor NY 10036 * $19,342,329.95 in aggregate principal amount of Prepetition Term Loans MJX ASSET MANAGEMENT LLC 12 E 49th Street New York, NY 10017 * $23,124,996.10 in aggregate principal amount of Prepetition Term Loans * $3,857,152.91 in aggregate principal amount of new money loans and commitments under the DIP Facility * $1,500,003.90 in aggregate principal amount of Roll-Up Loans SHENKMAN CAPITAL MANAGEMENT, INC. 461 Fifth Avenue New York, NY 10017 * $22,735,680.39 in aggregate principal amount of Prepetition Term Loans SIEMENS FINANCIAL SERVICES, INC. 170 Wood Ave. South Iselin, NJ 08830 * $27,872,558.98 in aggregate principal amount of Prepetition Term Loans * $4,313,419.77 in aggregate principal amount of new money loans and commitments under the DIP Facility * $1,677,441.02 in aggregate principal amount of Roll-Up Loans PGIM, INC. 655 Broad Street, 7th Floor Newark, NJ 07102 * $11,384,796.27 in aggregate principal amount of Prepetition Term Loans * $5,284,543.92 in aggregate principal amount of new money loans and commitments under the DIP Facility * $2,055,100.42 in aggregate principal amount of Roll-Up Loans VOYA INVESTMENT MANAGEMENT, LLC 7337 E. Doubletree Ranch Road, Suite 100 Scottsdale, AZ 85258 * $31,339,869.25 in aggregate principal amount of Prepetition Term Loans * $5,135,254.19 in aggregate principal amount of new money loans and commitments under the DIP Facility * $1,997,043.29 in aggregate principal amount of Roll-Up Loans Counsel to the Ad Hoc Group of Secured Lenders can be reached at: RAPP & KROCK, PC Henry Flores, Esq. Kenneth Krock, Esq. 1980 Post Oak Blvd, Suite 1200 Houston, TX 77056 Telephone: (713) 759-9977 Facsimile: (713) 759-9967 Email: hflores@rappandkrock.com kkrock@rappandkrock.com - and - DAVIS POLK & WARDWELL LLP Damian S. Schaible, Esq. David Schiff, Esq. Jonah A. Peppiatt, Esq. 450 Lexington Avenue New York, NY 10017 Telephone: (212) 450-4000 Facsimile: (212) 701-5800 Email: damian.schaible@davispolk.com david.schiff@davispolk.com jonah.peppiatt@davispolk.com A copy of the Rule 2019 filing, downloaded from PacerMonitor.com, is available at https://is.gd/bI0bQO About SpeedCast International Headquartered in New South Wales, Australia, SpeedCast International Limited and its affiliates provide remote and offshore satellite communications and information technology services. SpeedCast's fully-managed service is delivered to more than 2,000 customers in 140 countries via a global, multi-access technology, multi-band and multi-orbit network of more than 80 satellites and an interconnecting global terrestrial network, bolstered by on-the-ground local support from more than 40 countries. Speedcast services customers in sectors such as commercial maritime, cruise, energy, mining, government, NGOs, enterprise, and media. SpeedCast International and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 20-32243) on April 23, 2020. At the time of the filing, the Debtors were estimated to each have assets of between $500 million and $1 billion and liabilities of the same range. Judge David R. Jones oversees the cases. The Debtors tapped Weil, Gotshal & Manges, LLP as bankruptcy counsel; Herbert Smith Freehills as co-counsel with Weil; Moelis Australia Ltd. as financial advisor; FTI Consulting Inc. as restructuring advisor; and Kurtzman Carson Consultants LLC as claims agent. ULITHORNE WINES: First Creditors' Meeting Set for June 11 --------------------------------------------------------- A first meeting of the creditors in the proceedings of Ulithorne Wines Pty Ltd will be held on June 11, 2020, at 10:30 a.m. via Virtual meeting via Microsoft Teams. Andrew Langshaw and Stephen Duncan of Duncan Powell were appointed as administrators of Ulithorne Wines on May 29, 2020. VIRGIN AUSTRALIA: Bidders Get 10-day Extension for Final Offers --------------------------------------------------------------- Reuters reports that Virgin Australia Holdings Ltd's administrator has given final bidders Bain Capital and Cyrus Capital Partners until June 22 to lodge binding offers, an extension of 10 days from the original date, a person with knowledge of the matter said on June 3. The additional time will allow the bidders to refine their final offers, the source told Reuters on condition of anonymity, adding that the administrator, Deloitte, was still seeking a binding deal with the winner by June 30. Reuters relates that the next phase for the parties on the final shortlist will include further engagement with stakeholders and aircraft financiers as they seek pacts on future terms before binding bids are received, Deloitte has said. About Virgin Australia Brisbane, Queensland-based Virgin Australia is Australia's second-largest airline. It commenced services in 2000 as Virgin Blue, wholly owned by the Virgin Group. As reported in the Troubled Company Reporter-Asia Pacific on April 22, 2020, Bloomberg News related that Virgin Australia Holdings Ltd. became Asia's first airline to fall to the coronavirus after the outbreak deprived the debt-burdened company of almost all income. Administrators at Deloitte, who have taken control of the Brisbane-based carrier, aim to restructure the business and find new owners within months. More than 10 parties have expressed an interest, Deloitte related on April 21. Virgin Australia, which has furloughed 80% of its 10,000 workers, will continue to operate some flights for essential workers, freight and the repatriation of Australians, Bloomberg said. The airline's frequent flyer program is a separate company and is not in administration. Richard John Hughes, John Greig, Vaughan Strawbridge and Sal Algeri of Deloitte were appointed as administrators of Virgin Australia, et al., on April 20, 2020. The company owes AUD6.8 billion to lenders, bondholders, aircraft lessors, trade creditors and employees. On April 29, 2020, the company and certain affiliates filed petitions pursuant to Chapter 15 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York. VIRGIN AUSTRALIA: Unions to Grill Bain Over Quick Resale Concerns ----------------------------------------------------------------- Patrick Hatch and Eryk Bagshaw at The Sydney Morning Herald report that Virgin Australia's unions will demand more information from suitor Bain Capital about its plans for the collapsed airline as Canberra echoes concerns the airline could quickly be "flipped" by one of its two remaining bidders. According to SMH, the American private equity firm and the Richard Branson-linked rival bidder Cyrus Capital will need to win over Virgin's workforce and unions, with 9,000 employees forming a decisive bloc of creditors that can seal the fate of either of their rescue offers. Virgin's administrators at Deloitte announced Bain and Cyrus as the two final bidders for Virgin on June 2 and they now have until June 22 to make binding offers for the airline which collapsed in April owing $6.8 billion, SMH says. SMH relates that the winning takeover bid is set to sail through the Foreign Investment Review Board, despite concerns in Canberra about it being "flipped", or resold, shortly after by its new owners, with government sources confirming it would not stand in the way of either bidder. According to the report, Coalition MP Barnaby Joyce said airport landing slots should be quarantined to safeguard a second major airline, which would be a disincentive for a new owner to gut and sell the company, while also ensuring other buyers would be interested if it was put back on the market. "If they flip it, they can’t flip the slots," the former deputy prime minister and minister for transport said, SMH relays. "That is probably the crucial link in the viability and capacity of any airline. It is determined by the capacity to land at Sydney Airport." SMH adds that union sources said they still knew little about how many aircraft and workers Virgin would have under Bain's ownership and would push for that information in meetings over the coming weeks. Cyrus is also yet to outline its exact plans for Virgin, the report notes. However the fund has said it will maintain Virgin as a full-service international airline, raising expectations it could relaunch with more workers than Bain, which wants to make Virgin more like a budget carrier such as Jetstar. Virgin's union representatives are concerned Bain will be a short-term "cut-and-run" investor and are nervous about its record on industrial relations, and the reputation of its consultancy arm as a corporate razor gang, SMH states. "Bain came through Qantas like a dose of salts in the mid-2000s and the only thing they told them to do was to get rid of staff," said one union figure, SMH relays. Virgin currently has 132 aircraft. There have been suggestions Bain is considering an operation of about 75 aircraft over the medium term, however people close to the group said it had not yet decided the appropriate size for the carrier, relays SMH. About Virgin Australia Brisbane, Queensland-based Virgin Australia is Australia's second-largest airline. It commenced services in 2000 as Virgin Blue, wholly owned by the Virgin Group. As reported in the Troubled Company Reporter-Asia Pacific on April 22, 2020, Bloomberg News related that Virgin Australia Holdings Ltd. became Asia's first airline to fall to the coronavirus after the outbreak deprived the debt-burdened company of almost all income. Administrators at Deloitte, who have taken control of the Brisbane-based carrier, aim to restructure the business and find new owners within months. More than 10 parties have expressed an interest, Deloitte related on April 21. Virgin Australia, which has furloughed 80% of its 10,000 workers, will continue to operate some flights for essential workers, freight and the repatriation of Australians, Bloomberg said. The airline's frequent flyer program is a separate company and is not in administration. Richard John Hughes, John Greig, Vaughan Strawbridge and Sal Algeri of Deloitte were appointed as administrators of Virgin Australia, et al., on April 20, 2020. The company owes AUD6.8 billion to lenders, bondholders, aircraft lessors, trade creditors and employees. On April 29, 2020, the company and certain affiliates filed petitions pursuant to Chapter 15 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York. ================= H O N G K O N G ================= CENTURY SUNSHINE: Fitch Affirms Then Withdraws B- LT IDR -------------------------------------------------------- Fitch Ratings has affirmed China-based fertilizer company Century Sunshine Group Holdings Limited's Long-Term Issuer Default Rating of 'B-', as well as its 'B-' senior unsecured rating with a Recovery Rating of 'RR4'. Its ratings remain on Rating Watch Negative. Concurrently, Fitch has chosen to withdraw all the ratings of Century Sunshine for commercial reasons. KEY RATING DRIVERS There has been no material change in Century Sunshine's credit profile since the previous rating action on April 23, 2020. The company's planned issuance of convertible bonds remains in progress while it is exploring other options, including issuing green bonds, to refinance its SGD101.75 million bond maturing on July 3, 2020, based on the company's filing with the Stock Exchange of Hong Kong and news reported by REDD Intelligence. RATING SENSITIVITIES Rating sensitivities are not applicable as the ratings have been withdrawn. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. ESG CONSIDERATIONS The highest level of ESG credit relevance, if present, is a score of 3. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity(ies), either due to their nature or to the way in which they are being managed by the entity(ies). ========= I N D I A ========= ABHIBUS SERVICES: Ind-Ra Assigns B- Issuer Rating, Outlook Stable ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Abhibus Services (India) Private Limited (Abhibus) a Long-Term Issuer Rating of 'IND B-'. The Outlook is Stable. The instrument-wise rating action is: -- INR80 mil. Fund-based facilities assigned with IND B-/ Stable / IND A4 rating. KEY RATING DRIVERS The ratings reflect Abhibus's small scale of operations, as indicated by revenue of INR554 million in FY20 (provisional numbers) (FY19: INR487 million). The revenue increased mainly due to growth in the customer base. According to the management, the revenue is likely to improve further over the medium term, supported by factors such as the increasing user base, and improving road facilities for long-distance travel. Two of the company's products - online passenger reservation system solution and access to the State Road Transport Corporation inventory– accounted for 90% of the total revenue in FY20. The other three products - an intelligent transport management system, call-center support, and vehicle tracking system - together contributed 10% to the total revenue during the same period. The ratings reflect the average EBITDA margins due to the nature of the business. The company turned EBITDA positive in FY20, with a margin of 1.2% (FY19: EBITDA loss), due to a decrease in advertisement costs and lower discounts. The company's absolute EBITDA stood at INR7 million in FY20 (FY19: negative INR44.5 million). Abhibus had incurred losses until FY19 due to higher branding and advertisement expenses, large discounts offered to customers, and higher commission provided to agents. The return of capital employed was 14% in FY20. The ratings are constrained by the company's weak credit metrics, with interest coverage (operating EBITDA/gross interest expense) of 0.1x in FY20 and net leverage (adjusted net debt/operating EBITDAR) of 97x. Liquidity Indicator – Poor: Abhibus recorded multiple instances of overutilization of its fund-based facilities during the nine months ended December 2019. However, there have not been any instances of overutilization in the three months that ended March 2020. The cash and cash equivalent remained low at INR2 million in FY20 (FY19: INR0.2 million). The cash flow from operations turned negative at INR159 million in FY20 (FY19: INR27 million) due to elongation in the working capital cycle. The networking capital cycle stretched to a negative 50 days in FY20 (FY19: negative 150 days) due to a stretch in the collection period to 51 days (19 days). The free cash flow turned negative at INR158 million in FY20 (FY19: INR16 million). Since the company operates in the services industry, there is no inventory holding period. The company gets credit period up to 120-150 days from software service vendors such as Google, Facebook for publishing their advertisements. Ind-Ra expects the cash flow from operations and free cash flow to remain positive over FY21, on the back of the improved EBITDA margins. Abhibus has availed the Reserve Bank of India-prescribed moratorium. The ratings derive support from the decade-long experience of the promoters in the software solution provider services. RATING SENSITIVITIES Negative: Any stretch in the liquidity or fall in the revenue as well as operating profitability, leading to deterioration in the credit metrics, will be negative for the ratings. Positive: An improvement in the liquidity, revenue, and operating profitability, leading to an improvement in the credit metrics, will be positive for the ratings. COMPANY PROFILE Abhibus is a Hyderabad-based company that was incorporated in 2008. It is promoted by Sudhakar Reddy Chirra. The company manages bus seat inventory and provides end-to-end software solutions, including e-ticketing systems, fleet management solutions, vehicle tracking systems, bus passenger information systems. ABSOLUTE PROJECTS: Ind-Ra Affirms 'BB+' Long Term Issuer Rating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Absolute Projects (India) Limited's (APIL) Long-Term Issuer Rating at 'IND BB+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR95 mil. (reduced from INR100 mil.) Fund-based working capital limit affirmed with IND BB+/Stable/IND A4+ rating; and -- INR380 mil. (reduced from INR 400 mil.) Non-fund-based working capital limit affirmed with IND A4+ rating. KEY RATING DRIVERS The affirmation reflects APIL's continued medium scale of operations even as the revenue increased to INR2,049.09 million in FY19 (FY18: INR1,542.85 million) due to the increased order execution and billing for the same. However, according to the management, the revenue declined to INR1,498 million in FY20 due to the impact of the extremely severe cyclonic storm Fani that had hit the project site in National Thermal Power Corporation Limited, Puri and the work execution was shut completely for three months. This, along with the procedural delays in the transfer of facilities to another bank, delayed the billing cycle. APIL's margins remained healthy despite contracting to 4.29% in FY19 (FY18: 4.61%) due to an increase in raw material prices and other indirect expenses. The return on capital employed was 19.5% in FY19 (FY18: 17.9%). Ind-Ra expects the margins to have deteriorated further in FY20 due to the impact of the cyclone. The company's absolute EBITDA increased to INR87.97 million in FY19 (FY18: INR71.10 million) due to an increase in the top-line and fall in the administrative and personnel expenses. The company's moderate net financial leverage (adjusted net debt/operating EBITDA) deteriorated to 2.26x (FY18: 1.00x) due to an increase in its debt. However, the interest coverage (operating EBITDAR/gross interest expense + rents) improved marginally to 3.26x in FY19 (FY18: 3.09x) due to an increase in the absolute EBITDA. Ind-Ra expects the credit metrics to have deteriorated further in FY20 due to a decline in the operating revenue and EBITDA margin. Liquidity Indicator - Stretched: APIL's average use of its fund-based limits stood at 99% for the 12 months ended April 2020. The cash flow from operations turned negative to INR109.74 million in FY19 (FY18: INR86.43 million) due to unfavorable changes in the working capital requirements. The company's working capital cycle was 33 days for FY19 (FY18: 34 days) due to the timely execution of orders and the realization of funds from the customers. The negative impact of an elongated debtor cycle of five-to-six months is somewhat offset by the creditor days of around 136. The cash and cash equivalents stood at INR4.88 million at FYE19 (FYE18: INR10.45 million). AIPL has availed the Reserve Bank of India-prescribed moratorium on its letter of credit for three months starting April 2020. The company does not have any capital market exposure and relies on banking channels to meet funding requirements. The ratings continue to be supported by promoter's extensive experience in the industry that has benefited the company in maintaining long-standing relationships with renowned customers and has also resulted in becoming an approved vendor for various associations; thus supporting the business risk profile. RATING SENSITIVITIES Negative: Any deterioration in the scale of operations and the overall credit metrics and/or a stretch in the liquidity position will be negative for the ratings. Positive: An improvement in the scale of operation, revenue visibility of 2x and an improvement in the credit metrics with the interest coverage staying above 3x along with improved liquidity position, will be positive for the ratings. COMPANY PROFILE APIL was incorporated in 1995 and is promoted by R.S. Ola. The company executes turnkey projects such as the erection and commissioning of substations, civil work for an extension of switchyard, shifting of lines, and manufacturing electrical goods such as conductors, transformers, switches, and switchgear. It has two manufacturing units – one each in Greater Noida and Roorkee. ALUMILITE ARCHITECTURAL: ICRA Keeps D Debt Ratings in Not Coop. --------------------------------------------------------------- ICRA said the rating for the bank facilities for INR7.00 crore of Alumilite Architectural Private Limited (AAPL) continues to remain under 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 3.50 [ICRA]D; ISSUER NOT COOPERATING; Fund Based/CC Rating continues to remain under 'Issuer Not Cooperating' category Short Term- 3.50 [ICRA]D; ISSUER NOT COOPERATING; Non Fund Based 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. Promoted by Mr. SK Damani, Alumilite Architecturals Private Limited (AAPL) was incorporated in 1992. The company is engaged in providing facade systems and solutions for doors, windows, partitions, structural glazing, automatic doors, cladding systems and skylights for various types of constructions including residential and commercial, etc. The company has its designing & fabrication facility setup in Bhiwandi, Mumbai. AZIZ ENTERPRISES: ICRA Keeps B INR8cr Debt Rating in Not Coop. -------------------------------------------------------------- ICRA said the 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 '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 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 the 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. CHOICE BOARDS: ICRA Withdraws B+ Rating on INR1.0cr Loan -------------------------------------------------------- ICRA has withdrawn the ratings on certain bank facilities of Choice Boards Pvt. Ltd. (CBPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based 1.00 [ICRA]B+(Stable); Withdrawn Non-Fund based 3.00 [ICRA]A4; Withdrawn Rationale The rating is withdrawn in accordance with ICRA's policy on withdrawal and suspension and as requested by the firm. Key rating drivers Key Rating drivers has not been captured as the rated instruments are being withdrawn. Liquidity Position: Key Rating drivers has not been captured as the rated instruments are being withdrawn. Rating sensitivities Rating sensitivities have not been captured as the rated instrument is being withdrawn. Incorporated in 1997, Choice Boards Pvt. Ltd. (CBPL) manufactures plywood, veneer, black board and flush doors. The Promoters and Directors, Mr. Sahadev Singh Meherwal and Mr. Prithvi Singh, have extensive experience in manufacturing plywood, face veneer, core veneer and black boards. The manufacturing facility is located in Dakamarri village, Bhimillipatnam Mandal, Visakhapatnam. The company is ISO-9001:2008 certified and all its products are certified with IS 303, IS 710 and IS 1659 by the Bureau of Indian Standards. The company also trades in timber and steel products. COASTAL CONSOLIDATED: ICRA Removes D Rating from Not Cooperating ---------------------------------------------------------------- ICRA has removed its earlier rating of [ICRA]D/[ICRA]D from the 'ISSUER NOT COOPERATING' category as the company has now submitted its 'No Default Statement' ("NDS"). The company's rating was moved to the 'ISSUER NOT COOPERATING' category in May 2020. CONSOLIDATED CONSTRUCTION: ICRA Keeps D Debt Ratings in Not Coop. ----------------------------------------------------------------- ICRA said the rating for the bank facilities for INR2012.05 crore of Consolidated Construction Consortium Limited (CCCL) continues to remain under 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 380.00 [ICRA]D; ISSUER NOT COOPERATING; Fund Based/CC Rating continues to remain under 'Issuer Not Cooperating' category Long Term- 72.05 [ICRA]D; ISSUER NOT COOPERATING; Fund Based TL Rating continues to remain under 'Issuer Not Cooperating' category Short Term- 190.00 [ICRA]D; ISSUER NOT COOPERATING; Fund Based Rating continues to remain under 'Issuer Not Cooperating' category Long Term- 45.00 [ICRA]D; ISSUER NOT COOPERATING; Unallocated Rating continues to remain under 'Issuer Not Cooperating' category Short Term- 1,275.00 [ICRA]D; ISSUER NOT COOPERATING; NonFund Based Rating continues to remain under 'Issuer Not Cooperating' category Non-Convertible 50.00 [ICRA]D; ISSUER NOT COOPERATING; Debentures 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. Consolidated Construction Consortium Limited was incorporated in 1997 as a public limited company by four former employees of L&T: Mr. R. Sarabeswar, Mr. S. Sivaramakrishnan, Mr. V. Janarthanam, and Mr. T.R. Seetharaman. Since inception, the company has concentrated on construction and related activities in the commercial, infrastructure, industrial and residential sectors. To provide turnkey construction solution to clients, CCCL has set up subsidiaries including Consolidated Interiors Limited (for interior contracting and fit-out services); Noble Consolidated Glazings Limited (for glazing services); and CCCL Power Infrastructure Limited (for undertaking BOP orders for power projects). EASHWARA SAI: ICRA Keeps B- Debt Ratings in Not Cooperating ----------------------------------------------------------- ICRA said the ratings for the INR6.50-crore bank facilities of Eashwara Sai Cotton Industries Continues to remain under 'Issuer Not Cooperating' category'. The ratings are denoted as "[ICRA]B-(Stable) ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 3.00 [ICRA]B-(Stable); ISSUER NOT Fund Based TL COOPERATING; Rating Continues to remain under issuer not cooperating category Long Term- 3.50 [ICRA]B-(Stable); ISSUER NOT Fund Based/CC COOPERATING; 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 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. Eashwara Sai Cotton Industries (ESCI), located at Gajwel mandal in Medak district of Telangana, is registered as a partnership firm. The firm commenced its operations in January 2015. The firm is primarily engaged in ginning and pressing business with installed processing capacity to process ~116640 quintals of raw cotton per annum. GIRIRAJ JEWELLERS: ICRA Keeps B INR6cr Debt Rating in Not Coop. --------------------------------------------------------------- ICRA has continued the long-term ratings for the bank facilities of Giriraj Jewellers Private Limited to the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B(Stable)/A4; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 6.00 [ICRA]B (Stable) ISSUER NOT Fund based COOPERATING; Rating continues Cash Credit to remain in the 'Issuer Not Cooperating' category Short-term– 2.50 [ICRA]A4 ISSUER NOT COOPERATING; Fund based Rating continues to remain in the 'Issuer Not Cooperating' category Short-term- 6.00 [ICRA]A4 ISSUER NOT COOPERATING; Nonfund-based Rating continues to remain in the 'Issuer Not Cooperating' category Long-term/ 0.50 [ICRA]B (Stable)/[ICRA]A4 ISSUER Short term– NOT COOPERATING; Rating continues Unallocated to remain in 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 2004, GJPL is engaged in manufacturing of gold and diamond studded Jewellery from its manufacturing facility located at Borivali (West), Mumbai. The company also has a showroom located at Borivali (West). The promoter of GJPL has been engaged in the Jewellery business for the past three decades through the proprietorship firm, namely Giriraj Jewellers. Giriraj Jewellers is currently engaged in wholesale of gold and diamond jewellery and exports to United Arab Emirates (UAE) and United Kingdom (UK) markets. IMPERIAL TUBES: ICRA Keeps 'D' Debt Ratings in Not Cooperating -------------------------------------------------------------- ICRA said the 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 Credit '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 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. and are sold under the brand name of 'Imperial'. INFANT'S TRAVELS: ICRA Lowers Rating on INR18cr Loan to B+ ---------------------------------------------------------- ICRA has downgraded the ratings on certain bank facilities of Infant's Travels Private Limited (ITPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 18.00 [ICRA]B+ (Stable) ISSUER NOT Fund Based/CC COOPERATING; Rating downgraded from [ICRA]BB+ (Stable)and continues to remain in the 'Issuer Not Cooperating' Category Rationale The ratings are downgrade because of lack of adequate information regarding Infant's Travels Private Limited 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 Infant's Travels 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. Infant's Travels Private Limited (ITPL), incorporated as a private limited company in 2002, provides staff transportation services for corporate entities as well as schools in Bangalore. Currently, the company's fleet consists of 1126 vehicles, out of which 851 are owned and 275 vehicles taken on rent. Key clientele of the company include Ryan International School, Samsung India, J P Morgan, SAP Labs India Private Limited and Amadeus Software, among others. J.J. AUTOMOTIVE: ICRA Withdraws 'B+' Rating on INR25cr Loan ----------------------------------------------------------- ICRA has withdrawn the ratings on certain bank facilities of J.J. Automotive Ltd, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based- 13.25 [ICRA]B+ (Stable) ISSUER NOT Term Loan COOPERATING; Withdrawn Fund based- 25.00 [ICRA]B+ (Stable) ISSUER NOT Cash Credit COOPERATING; Withdrawn Fund Based 0.50 [ICRA]B+ (Stable) ISSUER NOT Untied Limits COOPERATING; Withdrawn Non-Fund (0.40) [ICRA]A4 ISSUER NOT Based Letter COOPERATING; Withdrawn of Guarantee 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. JAGDAMBAY COTSPIN: ICRA Keeps B+ Debt Ratings in Not Cooperating ---------------------------------------------------------------- ICRA said the ratings for the INR20.00 crore bank facilities of Jagdambay Cotspin Limited continue to remain under Issuer Not Cooperating category. The long-term rating is denoted as [ICRA]B+ ISSUER NOT COOPERATING with a Stable outlook. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 5.00 [ICRA]B+ (Stable); ISSUER NOT Fund Based/CC COOPERATING; Rating continues to remain under the 'Issuer Not Cooperating' category Long Term- 15.00 [ICRA]B+ (Stable); ISSUER NOT Fund Based/ COOPERATING; Rating continues to Term Loan 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. JCL manufactures coarse-count open-end cotton yarn at its manufacturing facility in Samana, Punjab. It was incorporated in 2003 by Mr. Vijay Garg and his family members. Later in January 2013, the Bansal family through its group company, Aggarsain Fibers Limited, and other family members, acquired the controlling stake in the company. In September 2013, the company replaced the obsolete facility comprising ~1,200 rotors with new machines comprising 2,688 rotors, which can produce ~3,600 metric tonnes per annum of cotton yarn at count of 20s. K. PRASAD: ICRA Keeps 'B' Debt Ratings in Not Cooperating --------------------------------------------------------- ICRA said the ratings for the INR8.00-crore bank facilities of K. Prasad Babu Continues to remain under 'Issuer Not Cooperating' category'. The ratings are denoted as "[ICRA]B(Stable) ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 6.00 [ICRA]B (Stable); ISSUER NOT Fund Based COOPERATING; Rating Continues Cash Credit to remain under issuer not cooperating category Long Term– 2.00 [ICRA]B (Stable); ISSUER NOT Non Fund Based COOPERATING; 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 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. The firm was incorporated by Mr. K. Anantha Rao in the year 1983 as sole proprietorship and was engaged in civil construction works and is registered class 1 civil contractor with government of India. Post the death of Mr. K Anantha Rao in June, 2014 his legal heir K.Prasad Babu has taken over all the outstanding orders of his father and floated a new firm K.Prasad Babu as sole proprietorship. The firm is primarily engaged in construction of offices, Hospitals, Govt. residential complexes & blocks, Godowns, schools etc. for government agencies. KALLAM AGRO: ICRA Lowers Rating on INR43cr LT Loan to B+ -------------------------------------------------------- ICRA has downgraded the ratings on certain bank facilities of Kallam Agro Products & Oils (P) Ltd [KAPOPL], as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term– 43.00 [ICRA]B+ (Stable) ISSUER NOT Fund based- COOPERATING; Rating downgraded Cash Credit from [ICRA]BB+ (Stable) and Rating Continues to remain under issuer not cooperating category Long Term- 6.50 [ICRA]B+ (Stable) ISSUER NOT Fund based- COOPERATING; Rating downgraded Term Loan from [ICRA]BB+ (Stable) and Rating Continues to remain under issuer not cooperating category Long Term– 0.50 [ICRA]B+ (Stable) ISSUER NOT Unallocated COOPERATING; Rating downgraded from [ICRA]BB+ (Stable) and Rating Continues to remain under issuer not cooperating category Rationale The rating downgrade is because of lack of adequate information regarding KAPOPL 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 Kallam Agro Products & Oils (P) 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. Kallam Agro Products & Oils (P) Ltd [KAPOPL] belongs to the Kallam Group of companies. KAPOPL is primarily engaged in cotton seed processing. The Group was promoted by Shri Kallam Haranadha Reddy, chairman of Kallam group of companies, in 1956. The Group has operations in ginning, oil production, cotton spinning, mini hydel generation and wind power. KAPOPL was floated in 1983 and was incorporated in 1987 as a private limited company. In 1991-92, it became a deemed public limited company. Later in 2002-03, it was converted to a private limited company. KAPL is currently engaged in the production and marketing of refined edible cotton seed oil with an installed crushing capacity of 500 MT/day. KAPOPL's initial operations included ginning and pressing of cotton seed with cotton seed crushing facilities added subsequently. In 1991, in order to enhance value addition, delinting and decordicating machines were added which enabled KAPOPL to export deoiled cake and de-linters. Solvent and refinery plant, with technology supplied by Alfa Level (India) Ltd, were added in 1996. In March 2008, KAPOPL commissioned 1.5 MW wind mill at Udayathur Village, Tirunelveli District, Tamil Nadu. KRISHNA TRANSNATIONAL: ICRA Cuts Rating on INR8.45cr Loan to B+ --------------------------------------------------------------- ICRA has downgraded the ratings on certain bank facilities of Krishna Transnational Marbles Private Limited, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based 3.25 [ICRA]B+ (Stable) ISSUER NOT COOPERATING; Rating downgraded from [ICRA]BB+ (Stable)and continues to remain in the 'Issuer Not Cooperating' Category Non-fund 1.30 [ICRA]A4 ISSUER NOT COOPERATING; based Rating downgraded from [ICRA]A4+ and continues to remain in the 'Issuer Not Cooperating' category Unallocated 8.45 [ICRA]B+ (Stable) ISSUER NOT COOPERATING; Rating downgraded from [ICRA]BB+ (Stable)and continues to remain in the 'Issuer Not Cooperating' Category Rationale The ratings are downgrade because of lack of adequate information regarding Krishna Transnational Marbles Private Limited 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 Krishna Transnational Marbles 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 2004, Krishna Transnational Marbles Private Limited is engaged in trading of marbles and granites. The trade name of the company is 'Krismar'. The company procures blocks/slabs of marbles and granites from quarries in India and imports from countries such as Italy, Turkey, China, Oman, Sri Lanka etc. While the company is primarily involved in trading, it also undertakes cutting and polishing activities upon customer request. The company has three outlets in Bangalore including a customer experience center. LAKSHMI BALAJI: ICRA Keeps B+ INR9.50cr Debt Rating in Not Coop. ---------------------------------------------------------------- ICRA said the ratings for the INR9.50-crore bank facilities of Lakshmi Balaji Oils Private Limited Continues to remain under 'Issuer Not Cooperating' category'. The ratings are denoted as "[ICRA]B+(Stable) ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 9.50 [ICRA]B+(Stable); ISSUER NOT Fund Based TL COOPERATING; 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 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. Lakshmi Balaji Oils Private Limited (LBOPL) was incorporated in the year 2003 and is engaged in the manufacturing of crude palm oil and it's by products with an installed capacity of 15 TPH at Orissa and Andhra Pradesh and is promoted by Mr. Satish Roy, Dr. M. Ravi Sankar and Mr.G.V. Subramanyam. Until 2014 the company had only one processing plant at Rayagada district of Orissa with 5 TPH capacity, but with the growing demand for palm oil, the company has started a new unit at Kurupam mandal of Vizianagaram district of Andhra Pradesh with 10 TPH capacity. Along with manufacturing, the company is also involved in palm oil nurseries and has 2 nurseries with an oil palm seedling growing capacity of 2 lakh per annum. LEAPFROG ENGINEERING: ICRA Keeps C Debt Ratings in Not Coop. ------------------------------------------------------------ ICRA said the ratings for the INR10.00 crore bank facilities of Leapfrog Engineering Services Private Limited to remain under Issuer Not Cooperating category. The rating is denoted as [ICRA]C (Stable) ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 6.00 [ICRA]C; ISSUER NOT COOPERATING; Fund Based/CC Rating continue to remain under the 'Issuer Not Cooperating' category Long Term- 4.00 [ICRA]C; ISSUER NOT COOPERATING; Non Fund Based Rating continue 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. Leapfrog Engineering Services Pvt (LESPL) Limited was incorporated by Mr Prabhav N Rao in 2005, in Bangalore, Karnataka. It currently has four Directors and is an integrated Engineering Services Company based out of Bangalore. The vision of the company is to provide 'Design Build' solutions to its clients and to become a reputed integrated engineering services company. MEENAR INDUSTRIES: ICRA Keeps B Debt Ratings in Not Cooperating --------------------------------------------------------------- ICRA has continued the ratings for the INR29.75 crore bank facilities of Meenar Industries Limited 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 ---------- ----------- ------- Long Term- 22.25 [ICRA]B (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Term Loan to remain under 'Issuer Not Cooperating' category Long Term- 7.50 [ICRA]B (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit 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 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 2007, MIL is setting up a green-field polyester yarn manufacturing facility at Varanasi, Uttar Pradesh with a total capacity of 15,000 metric tonnes per annum (MTPA). The project is being executed in two phases, with commissioning of phase I, with a capacity of 7500 MTPA, commenced in April 2015 and phase II with an equal capacity, yet to be commissioned. The promoter family has experience of over three decades in trading of yarns and also operates a yarn processing house. MEENAR POLYDYED: ICRA Lowers Rating on INR5.0cr LT Loan to B+ ------------------------------------------------------------- ICRA has downgraded the ratings on certain bank facilities of Meenar Polydyed Yarns Limited, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 5.00 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating downgraded Term Loan from [ICRA]BB-(Stable) and continues to remain under 'Issuer Not Cooperating' Category Long Term– 5.00 [ICRA]B+ (Stable) ISSUER NOT Fund Based-CC COOPERATING; Rating downgraded from [ICRA]BB-(Stable) and continues to remain under 'Issuer Not Cooperating' Category Rationale The ratings downgrade is because of lack of adequate information regarding Meenar Polydyed Yarns 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 Meenar Polydyed Yarns 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 2003 by Mr. Aftab Alam and his family, MPYL is a processing house of polyester, viscose and cotton yarns. The company undertakes various processes such as texturizing, twisting, dyeing, etc. The promoter family has experience of over three decades in trading of yarns. MUKESH AND CO: ICRA Lowers Rating on INR11cr LT Loan to B+ ---------------------------------------------------------- ICRA has downgraded the ratings on certain bank facilities of Mukesh and Co. Company, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 11.00 [ICRA]B+ (Stable) ISSUER NOT Fund Based/CC COOPERATING; Rating downgraded from [ICRA]BB+ (Stable)and continues to remain in the 'Issuer Not Cooperating' category Long Term- 5.00 [ICRA]B+ (Stable) ISSUER NOT Non-Fund Based COOPERATING; Rating downgraded from [ICRA]BB+ (Stable)and continues to remain in the 'Issuer Not Cooperating' category Rationale The ratings are downgrade because of lack of adequate information regarding Mukesh and Co. Company 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 Mukesh and Co. Company, 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. Mukesh and Co. is a proprietorship firm involved in trading of TMT bars. It is promoted by Mr. Mukesh Tibrewala and started operations in 1997 in Bangalore. The firm is an authorized dealer of B.M.M Ispat Limited. OPTICS AND ALLIED: ICRA Lowers Rating on INR4.0cr LT Loan to B+ --------------------------------------------------------------- ICRA has downgraded the ratings on certain bank facilities of Optics and Allied Engineering Private Limited, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 3.50 [ICRA]B+ (Stable) ISSUER NOT Fund Based/CC COOPERATING; Rating downgraded from [ICRA]BB+ (Stable) and continues to remain under 'Issuer Not Cooperating' category Long Term- 4.00 [ICRA]B+ (Stable) ISSUER NOT Fund Based TL COOPERATING; Rating downgraded from [ICRA]BB+ (Stable) and continues to remain under 'Issuer Not Cooperating' category Rationale The rating is downgraded because of lack of adequate information regarding Optics & Allied Engg Pvt. Ltd 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 Optics & Allied Engg Pvt. Ltd, 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. Optics and Allied Engineering Private Limited, established in 1985 by Mr. Rajendra Kotaria, manufactures precision optical components including prism, mirrors, polymer optical components, LED backlights, technical plastic parts and inspection instruments like microscopes, vision systems and magnifiers. The company is located in Bommasandra Industrial area, Karnataka with an employee base of 120. The company is ISO 9001:2008 certified. The majority stake of OAEPL is held by Babylone SA, the holding company of Gaggione SAS. Gaggione has a long presence in the optical industry since 1948 and provides technical guidance to OAEPL. PASOLITE ELECTRICALS: ICRA Keeps B+ INR8cr Debt Rating in Not Coop. ------------------------------------------------------------------- ICRA said the ratings for the INR8.00 crore bank facilities of Pasolite Electricals Pvt Ltd 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 FundBased/CC COOPERATING; Rating continue 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. Incorporated in 1997, Pasolite Electricals Pvt Ltd is based out of Bangalore and is engaged in the business of trading wide range of user friendly light fixtures with emphasis on energy saving and custom design for two decades. Pasolite provide lighting solutions to all indoor, outdoor, industrial and residential applications. It also trades in exterior lighting, road and street lighting, and landscape lighting. PASUPATI FLEXIPACK: Insolvency Resolution Process Case Summary -------------------------------------------------------------- Debtor: Pasupati Flexipack Private Limited Flat No. 101, 1st Floor Sai Anand Plaza Opp. Golden Nest Mira Bhayandar Road Mira Road East Thane 401107 Maharashtra Insolvency Commencement Date: April 28, 2020 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: October 25, 2020 Insolvency professional: Mr. Hajari Lal Saini Interim Resolution Professional: Mr. Hajari Lal Saini 704 A Wing N.G. Sterling Opp. Queen Marry High School Old Golden Nest Mira Bhayander Road Mira Road (E) 401107 Thane, Maharashtra E-mail: cahlsaini@rediffmail.com - and - 201 2nd Floor, Shreeji Darshan Opp Prasad Chamber Opera House, Charni Road (E) Mumbai 400004 E-mail: pasupati.cirp@gmail.com Last date for submission of claims: June 11, 2020 PIK STUDIOS: ICRA Keeps D INR12cr Debt Rating in Not Cooperating ---------------------------------------------------------------- ICRA said the rating for the bank facilities for INR12.00 crores of Pik Studios Private Limited (PIK) continues to remain under 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based- 12.00 [ICRA]D; ISSUER NOT COOPERATING; Cash Credit 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. Established in 1965 as V K Industries and thereafter converted into a private limited company in 1998, 'PIK Pens Private Limited' is engaged in the manufacturing of writing instruments which includes products like fibre tip pens, permanent markers, white board markers, highlighters, ball point pens, etc. In 2016, the company ventured into cosmetics (Eye liner, perfumers and kajal) and was renamed to PIK Studios Private Limited. The cosmetics line has not been launched in the market as yet, however the products are ready with the company. The products are sold under the brand name 'PikPens'. PIK also does job work for other writing instrument manufacturers like Linc Pen & Plastics Limited, Luxor Writing Instruments Pvt Ltd, Hindustan Pencils Private Limited. ROYAL POWER: ICRA Keeps B- INR6.25cr Debt Rating in Not Cooperating ------------------------------------------------------------------- ICRA has continued the long-term ratings for the bank facilities of Royal Power Turnkey Implements Private Limited to the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B-(Stable)/[ICRA]A4 ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based– 6.25 [ICRA]B- (Stable) ISSUER NOT Cash Credit COOPERATING; Rating continues Limits to remain in the 'Issuer Not Cooperating' category Non-fund 8.75 [ICRA]A4 ISSUER NOT COOPERATING; based–Bank Rating continues to remain in the Guarantee 'Issuer Not Cooperating' category Limits 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 2011, RPTL is engaged in executing turnkey power projects for various Government departments in Maharashtra, Goa and Chhattisgarh. The company is a registered class 'A' contractor with different states and local governing bodies. 2 Prior to 2011, the promoter, Mr. K.K Koshy, was engaged in a similar business segment of designing and constructing electricity infrastructure as well as commissioning lighting infrastructure and sub-stations through a proprietorship concern, Royal Electricals. S.D. EDUCATION: ICRA Keeps D INR6.75cr Debt Rating in Not Coop. --------------------------------------------------------------- ICRA said the 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 INR9 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. S.K. EXPORTS: Ind-Ra Lowers LT Issuer Rating to B+, Outlook Stable ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has downgraded S.K. Exports' (SKE) Long-Term Issuer Rating to 'IND B+' from 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are: -- INR2.8 mil. (reduced from INR4.00 mil.) Term loan due on December 2022 downgraded with IND B+/Stable rating; -- INR160.00 mil. Fund-based limits downgraded with IND B+/Stable rating; and -- INR20.00 mil. Non-fund-based limit downgraded with IND A4 rating. KEY RATING DRIVERS The downgrade reflects deterioration in SKE's already small scale of operations with revenue falling to INR380 million in FY20 (FY19: INR504.19 million; FY18: INR399.43 million) on the lower demand of its product. Its weak credit metrics deteriorated further in FY19 with interest coverage (operating EBITDA/gross interest expense) of 2.09x (FY18: 2.77x) and net financial leverage (adjusted net debt/operating EBITDAR) of 4.78x (3.52x) due to increased borrowing and the associated interest obligations. Ind-Ra expects the credit metrics to have deteriorated further in FY20, due to the deterioration in the absolute EBITDA, backed by lower revenue. The firm's weak operating margin declined to 7.33% in FY19 from 9.6% in FY18, mainly because of the higher cost of raw material consumed. The return on capital employed was 11% in FY19 (FY18: 12%). Liquidity Indicator – Adequate: The company's average use of fund-based working capital limits was 84.02% during the 12 months ended in April 2020. The cash flow from operations turned negative at INR19.94 million in FY19 (FY18: INR53.86 million). Cash and cash equivalents amounted to INR13.31 million at FYE19 (FYE18: INR21.52 million). Even though the net cash conversion cycle improved, it remained long at 116 days in FY19 (FY18: 130 days) due to high inventory days of 102 (131). The entity receives its payments in 81 days and pays its suppliers in 68 days. The ratings are supported by the partners' experience of more than three decades in the manufacturing of horse-riding accessories. RATING SENSITIVITIES Positive: Substantial growth in the scale of operation leading to an improvement in the credit metrics with the interest coverage above 2.0x will be positive for the ratings. Negative: A decline in the scale of operation leading to further deterioration in its credit profile and/or deterioration in the liquidity will be negative for the ratings. COMPANY PROFILE SKE was formed in 2000 as a partnership firm by Sidharth Kapoor along with his family members. The firm commenced commercial operations in 2002, with a manufacturing facility located in Kanpur. The firm manufactures horse-riding accessories such as saddle, strappings, ridding breeches, and workwear. S.K. SOLVEX: ICRA Keeps B INR8.50cr Debt Rating in Not Cooperating ------------------------------------------------------------------ ICRA said the rating for the INR8.50 crore bank facilities of S.K. Solvex Private Limited continue to remain under 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B (Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based 8.50 [ICRA]B (Stable) ISSUER NOT limits COOPERATING; 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. SKSPL was incorporated in 2001 and is engaged in the manufacturing of mustard oil and cake at its unit in Jaipur, Rajasthan. The current seed crushing capacity of the oil mill is 36,000 metric tonnes per annum (MTPA). SANMATI EDIBLE: ICRA Keeps B INR8.0cr Debt Rating in Not Coop. -------------------------------------------------------------- ICRA said the rating for the INR8.00 crore bank facilities of Sanmati Edible Oils Private Limited continue to remain under 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B (Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based 8.00 [ICRA]B (Stable) ISSUER NOT limits COOPERATING; 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. Sanmati Edible Oil was established in 1992 as a partnership concern. Later, the constitution of the concern has been changed to company in 1999. The company is engaged in the extraction of crude mustard oil (kacchi dhani) and de-oiled mustard cake (by-product). The facility of the company is situated at Jaipur, Rajasthan. The company has the crushing capacity of 50 metric tonne per day (MTPD), which can be enhanced through extension of working hours and normal capex. The company sells its edible oil under its registered brand name 'Sanmati' to the local players. The major customers of the company include Emami Biotech Limited, Adani Wilmar Limited and its group companies. These players procure oil from SEOPL and sells under their own brand name. SATNAAM STONE: ICRA Keeps 'B' Debt Ratings in Not Cooperating ------------------------------------------------------------- ICRA said the ratings for the INR10.00 crore bank facilities of Satnaam Stone Crushers Private Limited continue to remain under Issuer Not Cooperating category. The long-term rating is denoted as [ICRA]B ISSUER NOT COOPERATING with a Stable outlook. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 7.50 [ICRA]B (Stable); ISSUER NOT Fund Based/CC COOPERATING; Rating continues to remain under the 'Issuer Not Cooperating' category Long Term- 2.40 [ICRA]B (Stable); ISSUER NOT Fund Based/ COOPERATING; Rating continues to Term Loan remain under the 'Issuer Not Cooperating' category Long Term- 0.10 [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. SSCPL was established in January 2013 but commenced operations in February 2014. The company crushes and screens stones/boulders into grits of smaller sizes. The company is promoted by Mr. Vinay Arora, Mr. Om Prakash Arora, Mr. Anil Khatri and Mr. Jitendra Kumar. The stone crushing plant of the company is located at Rampur (Uttar Pradesh). SHRI RAMSWAROOP: Ind-Ra Keeps D Bank Loan Rating in NonCooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Shri Ramswaroop Memorial Institute of Management and Computer Application's bank loan ratings in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the ratings. The ratings will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR190 mil. Term loans (long-term) due on September 2019 maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR50 mil. Fund-based working capital facility (long-term) maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The rating was last reviewed on June 9, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the rating. COMPANY PROFILE Shri Ramswaroop Memorial Institute of Management and Computer Application manages the Shri Ramswaroop Memorial Group of Professional Colleges and Shri Ramswaroop Memorial Public School. THIRUMALA KNIT: ICRA Keeps 'B' Debt Ratings in Not Cooperating -------------------------------------------------------------- ICRA said the ratings for the INR10.00 crore bank facilities of Thirumala Knit Finisher to remain under Issuer Not Cooperating category. The long-term rating is denoted as [ICRA]B (Stable) ISSUER NOT COOPERATING and short-term rating is denoted as [ICRA]A4 ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 2.00 [ICRA]B (Stable); ISSUER NOT Fund Based/CC COOPERATING; Rating continue to remain under the 'Issuer Not Cooperating' category Long Term- 3.78 [ICRA]B (Stable); ISSUER NOT Fund Based TL COOPERATING; Rating continue to remain under the 'Issuer Not Cooperating' category Long Term/ 4.22 [ICRA]B (Stable)/[ICRA]A4; Short Term- ISSUER NOT COOPERATING; Unallocated Rating continue 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. Thirumala Knit Finisher is a partnership firm established in 2006, and is providing fabric processing services on jobwork basis. The firm is located in Tirupur (Tamilnadu) with capabilities for tubular and open width compacting and operating with an installed capacity 35 metric tons per day. The firm was promoted by six partners, and is family-owned. Mr. Duraisamy is the managing partner of the firm having experience of more than a decade in the textile industry. The firm caters to about 300 customers, mostly, garment manufacturers' located in and around Tirupur providing fabric processing services like compacting, raising and sueding, among others. UNITED COMPOSHEETS: ICRA Keeps B Debt Ratings in Not Cooperating ---------------------------------------------------------------- ICRA has continued the ratings for the INR6.00 crore bank facilities of United Composheets Private Limited. 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 ---------- ----------- ------- Long Term- 3.00 [ICRA]B (Stable); ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category Long Term- 3.00 [ICRA]B (Stable); ISSUER NOT Fund Based- COOPERATING; Rating continues Term Loan 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 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 1998, UCPL is promoted by Mr. Jinesh Kumar Tyagi and is involved in manufacturing sheet metal components for electrical, electronic and automotive applications. The company's product range includes engine motor parts, wiper motor housings and other deep-drawn components used in automobile engines and bodies. The company also manufactures panels and switch gear components for electronic and electromotive applications. At present, the company has two manufacturing units in Ghaziabad. VISHWAKARMA BUILDERS: ICRA Keeps D INR34.50 Debt Rating in Not Coop ------------------------------------------------------------------- ICRA said the 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. WARORA CHANDRAPUR: ICRA Lowers Rating on INR336cr Loan to 'B' ------------------------------------------------------------- ICRA has downgraded the ratings on certain bank facilities of Warora Chandrapur Ballarpur Toll Road Limited (WCBTRL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 336.00 [ICRA]B (Stable)ISSUER NOT Fund Based TL COOPERATING; Rating downgraded 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 WCBTRL'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 01, 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). WARREN TEA: ICRA Lowers Rating on INR24cr Loan to 'B' ----------------------------------------------------- ICRA has downgraded the ratings on certain bank facilities of Warren Tea Limited (WTL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based 24.00 [ICRA]B (Negative); downgraded working from BB- (Negative) capital Limits Term Loan 14.06 [ICRA]B (Negative); downgraded from BB- (Negative) Non-fund based limits 2.64 [ICRA]A4; reaffirmed Untied limits 0.94 [ICRA]B (Negative)/[ICRA]A4, downgraded from [ICRA]BB- (Negative)/[ICRA]A4 Rationale The downward revision of the long-term rating of WTL takes into consideration the liquidity tightness that the company is experiencing after imposition of the lockdown following the Covid-19 pandemic. WTL suffered production losses since end-March 2020, resulting in overdrawal of the drawing power of its cash credit facilities for less than 30 days. Within this period, the company approached its lender/s, seeking a moratorium in payments as a part of the Covid-19 relief package permitted by the Reserve Bank of India vide its circular dated March 27, 2020. The lender has recently granted an approval to the moratorium request made by the company. ICRA expects that the company would post losses again in FY2020 at the operating level due to the absence of a commensurate uptick in realisation to absorb the increased labour cost. Further adjustment for arrear salary and related benefits for the period April 2018 to October 2019 has adversely impacted its profitability in 9M FY2020 and resulted in a net loss of INR8.28 crore compared to net loss of INR5.29 crore in 9M FY2019. Continuing losses over the years led to a significant deterioration in the company's profitability and coverage indicators. The liquidity position of the entity has also weakened significantly over the years due to the cash losses suffered since FY2017. The same is likely to remain weak unless there is a meaningful recovery in tea realisation, given the sizeable debt servicing obligation the entity has in the coming years. In FY2021, tea production of all the players is likely to be impacted due to the production loss suffered due to the Covid-19 pandemic. However, the same is also likely to have a positive impact on the realisation, at least in the near term. Meanwhile, the ratings continue to draw comfort from the company's premium quality tea that commands a higher price over the average market realisation. Besides, comfortable yield of WTL's tea estates mitigates the risks associated with the fixed-cost intensive nature of the tea plantation business to some extent. ICRA has also taken into consideration the sale of one of the tea estates (MoU entered in Q3 FY2020) for ~Rs. 19 crore and the expected receipt of the balance sale proceeds of ~Rs.16 crore in FY2021, which would support the company's liquidity position to some extent in the near term. The ratings, however, also factor in the risks associated with tea for being an agricultural commodity, which depends on agro-climatic conditions and the inherent cyclicality of the fixed-cost intensive tea industry that lead to variability in profitability and cash flows of bulk tea producers like WTL. As Indian tea is essentially a price taker in the international market, low global prices affected domestic realisations to some extent as well. ICRA also notes that WTL's significant exposure in an associate company, which is not value accretive to WTL at present, reduces its overall business returns. The Negative outlook on the [ICRA]B rating reflects ICRA's opinion that the cash accruals from the company's core operations will continue to remain inadequate to service its debt obligations. Accordingly, the liquidity position of WTL would continue to remain poor in the near term, at least. Key rating drivers and their descriptions Credit strengths * Superior quality of tea as evident from the significant premium commanded by its produce compared to average market prices: WTL's superior quality of tea in the domestic market resulted in a premium of 36% for its produce compared to the average North Indian tea auction prices in H1 FY2020. WTL's average realisation of tea has decreased in the same period to ~Rs. 199 per kg from ~Rs. 201 per kg in H1 FY2019. However, the top line during the period was supported by higher production of tea of 5.55 Mkg in H1 FY2020 compared to 5.00 Mkg in H1 FY2019. * Comfortable yield of tea estates mitigates risks associated with the fixed-cost intensive nature of bulk tea operations to some extent: The favourable age profile of the bushes results in a comfortable tea estate yield (1,679 kg/hectare in FY2019) of WTL, which directly impacts the cost structure due to the fixed-cost intensive nature of the industry. Although tea production remained at par in FY2019 over the previous year, production of tea increased to 5.55 Mkg in H1 FY2020 compared to 5.00 Mkg in H1 FY2019. Thus, the company's production in FY2020 is likely to be more than FY2019, supporting its top line. Credit challenges * Sustained deterioration in cost structure due to a significant rise in wage rates, adversely impacting the financial Profile: WTL's operating income stood at INR114.01 crore in 9M FY2020, up by ~11% over 9M FY2019, primarily due to an increase in tea production. However, the absence of a commensurate uptick in realisation to absorb the increased labour costs continued to impact its profitability, resulting in operating losses of INR3.09 crore in 9M FY2020 compared to an operating profit of INR0.11 crore in 9M FY2019. ICRA notes that tea production in FY2020 is estimated to be higher than FY2019, following the trend in H1 FY2020 production. However, it is expected that the average tea realisation for the company is expected to fall in FY2020 compared to FY2019. This is likely to result in significant operating and cash losses for the company given the high cost of production including increased wage rates of tea plantation workers and a hike in fuel expenses. Continuing losses over the years led to a significant deterioration in the company's profitability and coverage indicators. * Tightening of liquidity position: The liquidity position of the entity has weakened significantly over the years due to the cash losses incurred since FY2017. The same accentuated post the lockdown due to the production loss witnessed since end-March 2020, resulting in overdrawal of the drawing power of its cash credit facilities for less than 30 days. Within this period, the company approached its lender/s, seeking a moratorium in payments as a part of the Covid-19 relief package permitted by the Reserve Bank of India, vide its circular dated March 27, 2020. The lender has recently approved the moratorium request made by the company. The liquidity position of WTL is likely to remain poor unless there is a meaningful recovery in tea realisation, given the sizeable debt servicing obligation that the entity has in the coming years. * Risks associated with tea for being an agricultural commodity: The profitability and cash flows of bulk tea producers like WTL remain volatile owing to the risks associated with tea for being an agricultural commodity, which depends on agro-climatic conditions as well as the inherent cyclicality of the fixed-cost intensive tea industry. Additionally, given that Indian tea is essentially a price taker in the global market, low international prices may impact the domestic realisations to an extent. * Significant investment/advances in an associate company, which are not value accretive to WTL at present: ICRA also notes that WTL has invested/advanced around INR31.47 crore to an associate company till FY2019, which accounted for around 40% of the company's tangible net worth as on March 31, 2019. As the same is not value accretive to WTL at present, it adversely impacted the business returns. Liquidity position: Poor WTL's liquidity position is poor, as reflected by significant cash losses incurred by the company since FY2017 and likely cash loss in FY2020 as well. Besides, increased debt servicing obligations in the near to medium term may aggravate the company's cash flow position. The sale of one of the tea estates will support WTL's liquidity position in the short term, subject to timely receipt of the same. However, high utilisation of working capital limits restricts financial flexibility of the company. Rating sensitivities Positive triggers – ICRA may revise WTL's long-term rating outlook if the entity is able to secure financial support in the form of external funding or receive sale proceeds for the tea garden in time. Negative triggers – Pressure on WTL's ratings may arise if the company delays in its debt servicing obligations. Warren Tea Limited (WTL) owns seven tea gardens across a cultivable area of around 4,119 HA under the leadership of Mr. Vinay K. Goenka. The gardens are located in the Upper Assam region, primarily in Dibrugarh and Tinsukia districts. The company's tea production stood at 6.91 Mkg in FY2019 with the CTC variety comprising the major portion of the company's tea. Further, the company has entered a Memorandum of Understanding for sale of one of its tea gardens. WOMEN'S NEXT: ICRA Keeps D INR12.50cr Debt Rating in Not Coop. -------------------------------------------------------------- ICRA said the rating for the bank facilities for INR12.50 crores of Women's Next Loungeries Limited (WNLL) continues to remain under 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based- 12.50 [ICRA]D; ISSUER NOT COOPERATING; Cash Credit 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. Women's Next Loungeries Limited (WNLL) was incorporated in December 2010 as Shiv Lingeries Private Limited (SSPL). The Company was founded by Mr. Bhavesh Bhanushali who has over 15 years of expertise in textile industry. The company is engaged in the business of manufacturing and trading in fancy ladies lingerie sold under brand names 'Valentine Pink' and 'Women's Next'. The manufacturing facility of WNLL with an annual installed capacity of 6,000,000 pieces is located at Bhiwandi, Maharasthra. The entity earns its revenues mainly from the domestic market and goods are sold primarily to Ashapura Intimates Fashion Limited (rated CARE BBB+). Apart from manufacturing of ladies' innerwear, the company is also engaged in trading of fabric. ZEN SHIPPING: Ind-Ra Lowers Long Term Issuer Rating to 'D' ---------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Zen Shipping & Ports India Private Limited's (ZSPIPL) Long-Term Issuer Rating to 'IND D' from 'IND BBB- (ISSUER NOT COOPERATING)'. The instrument-wise rating actions are: -- INR100 mil. Fund-based working capital limits (Long-/short- term) downgraded with IND D rating; and -- INR253 mil. (reduced from INR528.11 mil.) Term loan (Long- term) due on June 2025 downgraded with IND D rating. KEY RATING DRIVERS The downgrade reflects ZSPIPL's overutilization of the fund-based facility for more than 30 days over October-November 2019 and delays in term loan repayment in October 2019, as an increase in working capital requirements led to a stressed liquidity position. While the delay is being recognized in accordance with the extant regulations, ZSPIPL has submitted additional information and reported that the delays have been cured. The agency is reviewing the rating in light of the additional information submitted by the company. The outcome of the analysis will be published as soon as the review process is completed. COMPANY PROFILE Incorporated in 2011, ZSPL is one of India's private stainless steel chemical tanker vessel operators. The company initially commenced operations as a ship management services provider engaged in marketing and crew operations. In 2014, the company acquired two-second hand mid-sized stainless steel chemical tanker vessels; MT Tulip (10,280dwt) and Bon Atlantico (14,003dwt). ================= I N D O N E S I A ================= GARUDA INDONESIA: Lays Off 180 Contract Pilots ---------------------------------------------- The Jakarta Post reports that national flag carrier Garuda Indonesia has laid off 180 contract pilots, as well as hundreds of workers as the company continues to struggle financially amid a slump in demand for air travel, its workers association has said. The pilots, including senior and outsourced pilots working on a contract basis, have had their contracts terminated as the airline cuts back on flights, Garuda Pilot Association (APG) chairperson Muzaeni told The Jakarta Post on June 2. "There are a total of 180 pilots affected, of which 150 are contract workers sourced internally, mostly retired seniors aged 60 to 65 years old," Muzaeni said in a phone interview. "The other 30 are externally sourced contract workers." The Jakarta Post relates that the move followed a previous announcement from the airline that it had furloughed about 800 workers for three months starting on May 14 in a bid to maintain the company’s finances before resuming normal operations. The COVID-19 outbreak has forced Garuda to park 100 of its 142 aircraft as its daily flights have dropped 70 percent because of the government’s large-scale social restrictions (PSBB), the report says. Consequently, in the first quarter of 2020, the airline recorded a 31.9 percent annual drop in passenger and cargo revenue. According to The Jakarta Post, APG said the laid-off pilots had their rights fulfilled by the company. Muzaeni also said that in addition to the layoffs, Garuda had offered early retirement packages with added benefits for existing senior employees, the report relays. "The company is offering early retirement packages for employees who are over 50 years old. The package is worth about 35 times monthly wages, more than the usual retirement package, which is worth 30 times monthly wages," The Jakarta Post quotes Muzaeni as saying. Garuda Indonesia president director Irfan Setiaputra acknowledged the layoffs in a press release on June 2, while stating that the company had fulfilled its obligation to the affected pilots, according to The Jakarta Post. "We have been forced to terminate the contracts of our workers in order to align our workforce with the demand for our flight operations, which are significantly affected by the pandemic," the report quotes Irfan as saying. "It was a tough decision to make. However, we believe that Garuda can improve its operational condition and survive these challenging times," Irfan added. Previously, Garuda Indonesia took several measures to maintain cash flow amid plummeting demand for air travel, The Jakarta Post notes. The measures included cutting employee and executive salaries, cutting production costs for efficiency and renegotiating obligations to partners and aircraft lessors. Garuda Indonesia booked US$3.25 billion in short-term liabilities last year, including $498.9 million in sukuk (sharia compliant bonds), The Jakarta Post discloses citing the company's 2019 financial report. As the company struggles to stay afloat, the government is set to give IDR8.5 trillion ($597.6 million) in a working capital guarantee for the airline as part of the economic recovery stimulus package to stave off the impact of the pandemic, including on ailing state-owned companies, adds The Jakarta Post. Headquartered in Jakarta, Indonesia, government-owned airline PT Garuda Indonesia -- http://www.garuda-indonesia.com/-- currently has a fleet of about 77 aircraft offering service to some 27 domestic and 33 international destinations. Under its Citilink brand, it serves 10 other domestic routes. Garuda also ships about 200,000 tons of cargo a month and operates a computerized tracking system. PERUSAHAAN GAS: S&P Lowers ICR to 'B+', Outlook Stable ------------------------------------------------------ S&P Global Ratings is lowering the issuer credit rating on PT Perusahaan Gas Negara Tbk. (PGN) and the issue rating on its US$625 million senior unsecured notes to 'B+' from 'BB'. The oil and gas company's stand-alone credit profile (SACP) remains at 'b'. PGN's increasing focus on transmission and distribution signals a lower strategic importance of Saka Energi to the group. The strategic fit of Saka Energi within parent PGN has been slowly reducing over the past two years. PGN's operating focus has shifted increasingly toward gas transmission and distribution, following its amalgamation into PT Pertamina (Persero) and the acquisition of a 51% stake in gas transmission company PT Pertamina Gas. The gradual shift away from a strategy of backward integration to upstream exploration and production operations has accelerated over the past 18 months. We expect Saka Energi to produce about 35 thousand barrels of oil equivalent per day (kboe/d) in 2020, nearly one-third less than in 2018. At the same time, we expect Saka Energi's contribution to PGN's EBITDA to reduce to 20%-25% depending on hydrocarbon prices, compared with 35%-40% in earlier years. S&P said, "In our view, the sharp reduction in capital spending on replenishing the reserve base at Saka Energi also signals reduced commitment by PGN to maintain upstream integration. With yearly capital spending of about US$150 million over the past three years, Saka Energi has been unable to stabilize its reserve base, which fell to about 96 million barrels of oil equivalent (boe) as of Sept. 30, 2019, compared with about 131 million boe in 2017. Saka Energi's capital spending is likely to reduce to US$100 million-US$150 million in 2020, so reserve depletion is likely to remain. The depleting asset base further questions Saka Energi's longer-term strategic fit within the group. "In our view, recent communication from PGN on providing support to its subsidiaries and limited progress on the extension of the shareholder loan signal reducing extraordinary support to Saka Energi. The expectation that PGN would be willing and able to provide sufficient timely extraordinary financial support to Saka Energi underpinned our earlier assessment of a three-notch uplift to Saka Energi's SACP. Yet, PGN recently indicated that a potentially substantial reduction in consolidated revenue and gross margin at the group may restrict its ability to provide support to its existing subsidiaries or affiliates. This follows the Indonesian government's decree issued in April 2020 to cap industrial gas prices at US$6 per million British thermal units (mmBtu) for seven industrial sectors. So beyond our view that Saka Energi's strategic importance to PGN has reduced and despite the cross-default clause that remains between PGN's U.S. dollar bonds and debt at material subsidiaries, we regard this statement as a signal that extraordinary parent support may not be forthcoming to the extent we earlier considered. We now consider a one-notch uplift to Saka Energi's SACP, compared with a three-notch uplift previously. "We also note that PGN has not yet made a decision on the extension of the maturity on the remaining shareholder loans extended to Saka Energi--US$155 million maturing in 2021 and US$283 million in 2022. "We believe PGN's ability to extend support to Saka Energi has eroded in light of unfavorable government regulations. Recent credit-negative developments in Indonesia's gas transmission and distribution sector have reduced, in our view, the quality and predictability of PGN's earnings. These developments are the latest in a sector that has been subject to increasingly negative political intervention. This, in turn, has eroded PGN's ability to provide sufficient extraordinary support for its subsidiaries. The government has capped the company's gas selling price while its sourcing price is still being renegotiated. There is no existing mechanism to reduce its sourcing price or receive compensation for the revenue loss. We expect PGN to generate EBITDA of US$850 million–US$1,050 million across 2020–2022, as opposed to our expectation in January 2020 for EBITDA to stay above US$1 billion over the same period. We lowered our assessment of PGN's SACP to 'bb' from 'bb+' to reflect the pressure on the company's cash flow from gas margins compression due to negative government intervention and weak demand." Based on our projections, Saka Energi's stand-alone cash flow adequacy will dip in 2020 but hold steady in 2021. Saka Energi's cash flow adequacy ratios are likely to dip in 2020 due to lower production and hydrocarbon prices. S&P said, "We estimate the ratio of funds from operations (FFO) to debt to be about 6% in 2020, assuming EBITDA of US$130 million-US$150 million and a production of 35-40 kboe/d. We forecast EBITDA to recover to US$200 million-US$250 million in 2021, under our oil price assumptions. This will translate into an FFO-to-debt ratio of 12%-15% in 2021. These levels are commensurate with our expectations for the 'b' SACP on the company." Saka Energi's liquidity buffer will erode in 2020, amid tax liabilities and weaker operating cash flows. The company's liquidity buffer of US$351 million as of Dec. 31, 2019, will abate following the payment of a one-off tax liability of US$128 million and potential related tax penalty of US$128 million. That's despite a capital spending reduction in 2020 to US$100 million-US$150 million. S&P projects cash balance to reduce to about US$50 million at the end of 2020. S&P estimates Saka Energi's cash balance to stay above US$100 million through 2021. Free operating cash flow in 2021 is likely to be marginally positive, under the higher price assumptions underpinning our hydrocarbon price deck. Environmental, social, and governance (ESG) factors relevant to the rating action: -- Strategy, execution, and monitoring The lower strategic importance and fit of Saka Energi's operations for parent PGN has reduced the ability of Saka Energi's management to replenish its reserves and production in a timely manner. This is translating into declining production and shrinking reserves. It is also limiting opportunities for organic growth in reserves and therefore future cash flow generation. Recent communication by PGN regarding support to its subsidiaries, including 100%-owned Saka Energi, also leads us to question PGN's involvement and oversight of Saka Energi's operations. S&P said, "The stable outlook reflects our view that the relationship between Saka Energi and PGN is unlikely to change over the next 12–18 months. The stable outlook also captures our expectation that Saka Energi's cash flow adequacy ratio will reach a trough in 2020 before recovering in 2021 under our higher oil price assumptions and that the company will maintain sufficient liquidity with controlled capital spending. "We may lower the rating on Saka Energi if the company's ratio of FFO to debt fails to recover well above 12% sustainably. This could materialize if hydrocarbon prices remain depressed such that the company's EBITDA fails to exceed US$250 million in 2021 or if lower production or higher than our expected capital spending leads to more substantial organic cash burn and rising debt." S&P may also lower the rating if: -- S&P observes a further dilution of the relationship between Saka Energi and PGN, such as reduced ownership, resulting in lesser incentives for PGN to provide extraordinary support in times of stress; or -- Saka Energi's cash burn in 2020 is substantially larger than S&P's base case, leading to rapidly depleting cash balance and weakening liquidity. A higher rating could materialize if Saka Energi increases significantly its scale of operations, with sustainable reserves providing visibility on production. An upgrade would be contingent upon the company maintaining its sound profitability and a consistent capital structure, with its FFO-to-debt ratio comfortably above 12%. Alternatively, at current production levels, an FFO-to-debt ratio well above 20% could pave the way for a higher rating. In addition, S&P would be looking at obtaining more clarity on Saka Energi's long-term ownership. ========= J A P A N ========= NISSAN MOTOR: Cost of Closing Barcelona Plants Likely at EUR1.5BB ----------------------------------------------------------------- The Japan Times reports that Nissan Motor Co. has estimated the closure of its plants in Barcelona could cost up to around EUR1.5 billion (JPY179 billion), a union source said on June 1. The cost of the closure is at the heart of a debate in Spain over the move, with the government saying it would be cheaper to keep the plants operating, the report says. According to the report, the decision to leave Barcelona was announced by the Japanese carmaker last week as part of a turnaround plan, triggering protests by workers and a commitment by Madrid to do all it can to convince the company to stay. The Japan Times relates that Barcelona-based La Vanguardia newspaper earlier on June 2 cited Nissan documents as saying the closures could cost EUR1.45 billion, mostly to make around 3,000 workers redundant. The union source said that a few weeks ago Nissan had told workers that shutting the three Barcelona facilities could cost around EUR1.5 billion, the report relays. On May 28, the day the shutdown was announced, a Nissan executive told workers the cost could be much lower, at EUR700-800 million, the source added. However, the source, along with another senior union official, said the second estimate was probably unrealistic as that would barely cover redundancy payments to workers, some of whom have been employed for more than 20 years. On top of that, Nissan would face other costs related to suppliers and dismantling factories, the first source said, adding: "EUR1.5 billion is more realistic. It’s not easy to dismantle a factory." The report adds that La Vanguardia said that among the costs Nissan had estimated were EUR600 million for firing workers, EUR310 million in fiscal costs and potentially repaying EUR100 million of public aid. Nissan believes it would take close to seven years to recover in savings the cost of leaving Barcelona, the newspaper said. About Nissan Motor Nissan Motor Company Ltd, usually shortened to Nissan, is a Japanese multinational automobile manufacturer headquartered in Nishi-ku, Yokohama, Japan. As reported in the Troubled Company Reporter-Asia Pacific on April 21, 2020, Egan-Jones Ratings Company, on April 6, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Nissan Motor Co., Ltd. to BB from BBB. ========= M A C A U ========= NEW COTAI: Unsecureds to Have 90% Recovery in Debt-for-Equity Plan ------------------------------------------------------------------ New Cotai Holdings, LLC and its affiliates filed with the U.S. Bankruptcy Court for the Southern District of New York a Joint Chapter 11 Plan of Reorganization and a Disclosure Statement on May 8, 2020. The Plan is the result of a settlement reached among the Debtors and key parties in interest holding approximately 75% of the Debtors' prepetition debt, and provides for an equitable distribution of recoveries to the Debtors' creditors and equity holders. The Debtors, Silver Point, and the holders of Notes that are parties to the plan support agreement (the PSA or Plan Support Agreement) believe that any alternative to confirmation of the Plan, such as liquidation or attempts by another party in interest to file a plan, could result in significant delays, litigation and costs, and/or lesser recoveries. The Plan contemplated by the PSA provides that the Notes will be cancelled in their entirety and holders of Notes will receive their pro rata portion of 97.0% of the common units of Reorganized New Cotai, LLC. The parties to the PSA have agreed to support the Plan described in the Disclosure Statement. Specifically, the Consenting Noteholders and Silver Point have agreed to, among other things: (a) support and cooperate with the Debtors to take all actions necessary to consummate the Restructuring; (b) not withdraw, amend, or revoke their tender, consent, or vote with respect to the Plan; (c) not object to, delay, impede, or take any other action to interfere with the Restructuring, or propose, file, support, or vote for any Alternative Restructuring; (d) not take any other action that is inconsistent with their obligations under the PSA; and (e) negotiate in good faith alternative provisions to address legal or structural impediments that would prevent, hinder or delay the Restructuring. Class 4 General Unsecured Claims totaling $250,711 will receive a distribution in Cash in an amount equal to 90% of their Allowed General Unsecured Claims; provided, however, that to the extent that the total allowed amount of general unsecured claims exceeds $250,000, the distributions to each holder of an Allowed General Unsecured Claim will be reduced on a pro rata basis such that the aggregate amount of distributions made to holders of Allowed General Unsecured Claims does not exceed $225,000 (i.e., 90% of $250,000). Holders of Class 6 Existing New Cotai Interests will receive their pro rata portion of 3.0% of the New Common Units, subject to dilution by the Upfront Exit Commitment Fee and the Early Commitment Premium. Pursuant to the Plan, the Debtors will use proceeds from the Exit Facility and cash on hand to fund Plan payments and distributions that are payable in cash. A full-text copy of the Disclosure Statement dated May 8, 2020, is available at https://tinyurl.com/yd6ssvbb from PacerMonitor at no charge. Counsel for Debtors: SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP Mark A. McDermott Evan A. Hill Bram A. Strochlic One Manhattan West New York, New York 10001 Tel: (212) 735-3000 Fax: (212) 735-2000 About New Cotai Holdings New Cotai Holdings, LLC, and certain of its affiliates were formed for the purpose of investing in what is now Studio City International Holdings Limited. Studio City International, together with its subsidiaries, owns the Studio City project, an integrated resort comprising entertainment, retail, hotel and gaming facilities located in the Macau Special Administrative Region of the People's Republic of China. Affiliates of investment funds managed by Silver Point Capital, L.P. own a direct or indirect controlling interest in each of the Debtors. The Debtors have no employees. New Cotai Holdings and four affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No.19-22911) on May 1, 2019. The petitions were signed by David Reganato, authorized signatory. The cases are assigned to Judge Robert D. Drain. At the time of filing, New Cotai was estimated to have $100 million to $500 million in assets and $500 million to $1 billion in liabilities. The Debtors tapped Skadden, Arps, Slate, Meagher & Flom LLP, as counsel; Houlihan Lokey Capital, Inc., as financial advisor; and Prime Clerk LLC, as noticing, claims and balloting agent. ===================== N E W Z E A L A N D ===================== KIWI CAPITAL: S&P Reinstates Subordinated Instrument Rating at BB- ------------------------------------------------------------------ S&P Global Ratings said it has corrected by reinstating its 'BB-' rating on Kiwi Capital Funding Ltd.'s NZ$150 million perpetual capital notes. S&P had withdrawn the rating in error on May 28, 2020. MYSTERY CREEK: Waikato Wedding Venue Closes Doors ------------------------------------------------- Lawrence Gullery at Stuff.co.nz reports that the manager of a Waikato wedding event business forced to close is hopeful those who made bookings will see some of their $500 deposit money returned. Stuff relates that Sonya Anderson said she was gutted the Coopers Function Centre she managed for three years had to close after the owners decided to "repurpose" the building. "It's absolutely heart-breaking in so many ways, not just for me but for all of those brides who booked with me." According to Stuff, Ms. Anderson said the owners, Mystery Creek Wines, told her the building was to be closed. "When I challenged them on it, they said the building was going to be repurposed, even though it is one of Waikato's most beautiful wedding venues, such a unique location," Stuff quotes Ms. Anderson as saying. "And it's not going to be a wedding venue anymore." Mystery Creek Wines is near Cambridge, overlooking the Waikato River. Ms. Anderson said she tried to argue for more time to hold the wedding events already booked but was unsuccessful. Companies Office records show Mystery Creek Wines has two directors, Lynette Erceg and Darryl Gregory, Stuff discloses. ================= S I N G A P O R E ================= BREADTALK GROUP: To Delist from Singapore Exchange on June 5 ------------------------------------------------------------ Vivienne Tayvtay at The Business Times reports that Breadtalk Group on June 3 said the company will be delisted from the Singapore Exchange on June 5, 9:00 a.m., following the completion of its compulsory acquisition. BT relates that the food and beverage player, which lost its free float on April 4, suspended trading in its shares on April 21. The offerer -- BTG Holding -- exercised its right of compulsory acquisition on May 29. BTG Holding is a special purpose vehicle owned by BreadTalk founder and chairman George Quek with his wife Katherine Lee, and Minor International, a hospitality and leisure company listed in Thailand, the report notes. Minor International owns 99.7 per cent of The Minor Food Group, which in turn wholly owns Primacy Investments, a substantial shareholder of BreadTalk. According to BT, the application for delisting came after the company's privatisation offer closed on April 20, with the offeror's concert parties having owned, controlled or agreed to acquire 98.03 per cent of BreadTalk shares. It was also disclosed at the time that BTG Holding would compulsorily acquire the remaining shares at the same offer price of SGD0.77 apiece, the report adds. As reported in the Troubled Company Reporter-Asia Pacific on March 20, 2020, The Business Times said Breadtalk Group has launched a consent solicitation exercise (CSE) to get noteholders' approval to waive a technical default for SGD100 million 4 per cent fixed-rate notes due 2023, the company said on March 18. The food and beverage player is seeking to waive breaches of the consolidated tangible net worth covenant and the consolidated total borrowings to consolidated tangible net worth covenant. Additionally, the exercise seeks to lower the thresholds of the covenants - consolidated tangible net worth will not be less than SGD50 million while the consolidated total borrowings to consolidated tangible net worth will not exceed a 3.5:1 ratio from the quarter ending June 30, 2021. Headquartered in Singapore, BreadTalk Group Limited, an investment holding company, engages in bakery, food court, restaurant, and food and beverage businesses in Singapore, Mainland China, Hong Kong, Taiwan, Southeast Asia, and internationally. The company manufactures and retails various food, bakery, and confectionary products, as well as engages in franchising activities. It also manages and operates food courts, food and drinks outlets, eating houses, and restaurants. In addition, the company bakes, manufactures, and deals in bread, flour, and biscuits; acquires and holds intellectual property rights; processes, distributes, and sells premium coffee beans and tea dust; and distributes related processing equipment. Further, it is involved in the wholesale of confectionery and bakery products; and food and beverage management activities. The company operates approximately 1,000 outlets in 16 countries under the BreadTalk, Toast Box, Bread Society, Food Republic, Thye Moh Chan, The Icing Room, So Ramen, Song Fa Bak Kut The, Din Tai Fung, Wu Pao Chun Bakery, Nayuki, and TaiGai brands. HYFLUX LTD: Aqua Munda Now Re-assessing Offer Price --------------------------------------------------- The Business Times reports that potential investor Aqua Munda told Hyflux Ltd on June 2 that it is committed to helping Hyflux complete its debt restructuring, and would now like to acquire Hyflux's preference shares and perps. BT say Aqua Munda had earlier offered to buy only Hyflux's senior debt and had "some success" in attracting bids, but is now re-assessing how its offer should be priced. It said: "We can confirm that appropriate funding arrangements are in place and, barring unforeseen circumstances, we expect to secure a significant tranche of the unsecured debts shortly." Aqua Munda added that it is ready to provide no less than SGD10 million to Hyflux by way of a loan or other structure to help keep the business running, BT relays. However, that would be conditional on Hyflux winning the High Court's approval to extend its debt moratorium beyond July 30, the report says. Hyflux's next case-management conference is on June 11, BT discloses. About Hyflux Singapore-based Hyflux Ltd -- https://www.hyflux.com/ -- provides various solutions in water and energy areas worldwide. The company operates through two segments, Municipal and Industrial. The Municipal segment supplies a range of infrastructure solutions, including water, power, and waste-to-energy to municipalities and governments. The Industrial segment supplies infrastructure solutions for water to industrial customers. It has business operations across Asia, Middle East and Africa. As reported in the Troubled Company Reporter-Asia Pacific on May 24, 2018, Hyflux Ltd. said that the Company and five of its subsidiaries, namely Hydrochem (S) Pte Ltd, Hyflux Engineering Pte Ltd, Hyflux Membrane Manufacturing (S) Pte. Ltd., Hyflux Innovation Centre Pte. Ltd. and Tuaspring Pte. Ltd. have applied to the High Court of the Republic of Singapore pursuant to Section 211B(1) of the Singapore Companies Act to commence a court supervised process to reorganize their liabilities and businesses. The Company said it is taking this step in order to protect the value of its businesses while it reorganises its liabilities. The Company engaged WongPartnership LLP as legal advisors and Ernst & Young Solutions LLP as financial advisors in this process. On Jan. 29, WongPartnership applied to discharge themselves due to difficulties relating to "loss of confidence and good cause" in working with the client. The Company subsequently appointed Clifford Chance and Cavenagh Law as its legal advisers in WongP's place. In November 2019, Hyflux entered into a restructuring deal with United Arab Emirates-based utility Utico FZC, according to Reuters. HYFLUX LTD: CAD, MAS and Acra Launch Joint Probe ------------------------------------------------ The Business Times reports that Hyflux Ltd and its current and former directors are under investigation by the authorities for suspected false and misleading statements and breaches of disclosure rules that may have taken place over a period of years. According to the report, the Commercial Affairs Department (CAD) of the Singapore Police Force, the Monetary Authority of Singapore (MAS) and the Accounting and Corporate Regulatory Authority (Acra) said on June 2 that a joint probe was launched after the findings of a review that began last year gave them reason to suspect that offences had been committed. Hyflux filed for bankruptcy protection in May 2018, after a costly venture into the electricity market with its Tuaspring water desalination and power plant left it with weak cash flow and high debt. This includes SGD900 million still owed to 34,000 retail investors who had bought Hyflux's perpetuals and preference shares. BT relates that concerns were raised over Hyflux's compliance with accounting and auditing standards and disclosure rules. In response to the outcry, MAS, Acra and the regulatory arm of the Singapore Exchange said in April 2019 that they were reviewing the issues. "The review was an extensive exercise covering the announcements and financial statements issued by Hyflux over a period of eight years between 2011 and 2018 inclusive," said CAD, MAS and Acra on June 2. "The investigation will ascertain whether there were lapses in Hyflux's disclosures concerning the Tuaspring Integrated Water and Power Project, as well as non-compliance with accounting standards between 2011 and 2018." According to BT, Hyflux said it is assisting with the investigations and will "cooperate fully". As part of the probe, investigators have obtained accounting and other corporate records from Hyflux and its subsidiary Tuaspring Pte Ltd. Hyflux's directors and key officers who were involved in the Tuaspring project have also been interviewed by the authorities, the report notes. BT says the suspected breaches under the Securities and Futures Act relate to continuous disclosure, criminal liability for false or misleading statements contained in the prospectus for a securities offering, and false or misleading statements that are likely to induce others to subscribe for securities, to induce the sale or purchase of securities, or that might affect the market price of securities. The suspected breaches under the Companies Act relate to the preparation of financial statements. The authorities could not comment on the exact nature of the breaches, but Hyflux has previously drawn flak on multiple counts, the report says. According to BT, the authorities said that the subjects of their probe are all the directors who served on the board of Hyflux between 2011 and 2018. They include Ms Lum, independent directors Gay Chee Cheong, Teo Kiang Kok, Lee Joo Hai, Christopher Murugasu and Lau Wing Tat, as well as non-executive and non-independent director Gary Kee. Former independent director Simon Tay, who resigned in February over disagreements with the board, is also part of the group. The authorities stressed that the criminal investigations are separate from and do not pertain to Hyflux's ongoing corporate-rescue process, the report relays. "The investigations are not intended to interfere with Hyflux's current reorganisation plans as it focuses on determining the role of the subjects in the alleged disclosure lapses and non-compliance with accounting standards between 2011 and 2018," the authorities, as cited by BT, said. Asked whether Hyflux investors can expect to recover the losses suffered from their investments arising from this investigation, the authorities said: "Criminal investigations are distinct from civil claims. Affected investors who wish to consider civil claims are advised to seek independent legal advice on the possible recourse available to them," relays BT. About Hyflux Singapore-based Hyflux Ltd -- https://www.hyflux.com/ -- provides various solutions in water and energy areas worldwide. The company operates through two segments, Municipal and Industrial. The Municipal segment supplies a range of infrastructure solutions, including water, power, and waste-to-energy to municipalities and governments. The Industrial segment supplies infrastructure solutions for water to industrial customers. It has business operations across Asia, Middle East and Africa. As reported in the Troubled Company Reporter-Asia Pacific on May 24, 2018, Hyflux Ltd. said that the Company and five of its subsidiaries, namely Hydrochem (S) Pte Ltd, Hyflux Engineering Pte Ltd, Hyflux Membrane Manufacturing (S) Pte. Ltd., Hyflux Innovation Centre Pte. Ltd. and Tuaspring Pte. Ltd. have applied to the High Court of the Republic of Singapore pursuant to Section 211B(1) of the Singapore Companies Act to commence a court supervised process to reorganize their liabilities and businesses. The Company said it is taking this step in order to protect the value of its businesses while it reorganises its liabilities. The Company engaged WongPartnership LLP as legal advisors and Ernst & Young Solutions LLP as financial advisors in this process. On Jan. 29, WongPartnership applied to discharge themselves due to difficulties relating to "loss of confidence and good cause" in working with the client. The Company subsequently appointed Clifford Chance and Cavenagh Law as its legal advisers in WongP's place. In November 2019, Hyflux entered into a restructuring deal with United Arab Emirates-based utility Utico FZC, according to Reuters. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2020. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. 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