/raid1/www/Hosts/bankrupt/TCRAP_Public/200828.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, August 28, 2020, Vol. 23, No. 173
Headlines
A U S T R A L I A
CRAFTECH CUSTODIANS: Second Creditors' Meeting Set for Sept. 4
LATITUDE AUSTRALIA 2020-1: Moody's Confirms Ba2 Rating on E Notes
NEW AGED: Muswellbrook Aged Care Facility Goes Into Liquidation
RESIMAC TRIOMPHE 2017-2: S&P Affirms BB Rating on Class D Notes
C H I N A
SHENGSHI ELEVATOR: Involuntary Chapter 11 Case Summary
TONGCHUANGJIUDING INVESTMENT: S&P Affirms 'BB/B' ICRs
H O N G K O N G
GENTING HONG KONG: Braces for Earnings Drop Amid Pandemic
I N D I A
ADH CHEMICALS: ICRA Reaffirms B+ Rating on INR1.0cr Cash Loan
ADITYA AGRO: ICRA Keeps B+ on INR27cr Loans in Not Cooperating
AIRCEL GROUP: ARC Seeks Clarity on Rejection of Asset Sale Plan
ARISTO INDUSTRIES: ICRA Keeps B+ on INR12cr Debt in Not Cooperating
ATC FOODS: ICRA Lowers Rating on INR50cr Cash Loan to B+
AURO INDUSTRIES: ICRA Keeps B+ on INR8cr Debt in Not Cooperating
BRATTLE FOODS: Ind-Ra Lowers Issuer Rating to B+, Outlook Negative
C.G. CHANDRAPPA: ICRA Cuts Rating on INR5cr LT Loan to B+
DARJEELING POWER: ICRA Keeps B+ Debt Ratings in Not Cooperating
EASTERN GASES: ICRA Keeps D Debt Ratings in Not Cooperating
FIVEBROS FORGINGS: ICRA Cuts Rating on INR7cr Cash Loan to B+
GANESH AGRO: ICRA Lowers Rating on INR25cr Loan to B+
HAMSA MINERALS: ICRA Keeps D Debt Ratings in Not Cooperating
HARIOM INGOTS: ICRA Keeps B+ Debt Ratings in Not Cooperating
JAGATPAL SINGH: ICRA Keeps B+ Debt Ratings in Not Cooperating
JAIN IRRIGATION: SBI May Consider Debt Restructuring Next Week
KIRPA FOODS: ICRA Withdraws B+ Rating on INR28cr Term Loan
MEGHNAD SAHA: ICRA Lowers Rating on INR10cr Loan to B+
PANDOUL FLOUR: ICRA Lowers Rating on INR4cr Term Loan to B+
PERFECT COMMUNICATION: ICRA Keeps B+ Debt Rating in Not Cooperating
POMMYS GARMENTS: Ind-Ra Affirms BB+ LongTerm Issuer Rating
RADHANATH BHUNIA: ICRA Moves B on INR6cr Loans to Not Cooperating
RLJ WOVEN: ICRA Lowers Rating on INR11cr Cash Loan to B+
RNP SCAFFOLDING: ICRA Keeps B Debt Ratings in Not Cooperating
SANGHAR EXPORTS: ICRA Cuts Ratings on INR30cr Loan to 'B+/A4'
SARBAMANGALA AGRO: ICRA Keeps D Debt Ratings in Not Cooperating
STEEL & METALS: ICRA Lowers Rating on INR5.50cr Cash Loan to B+
UTTAM GALVA: Ind-Ra Affirms 'D' LongTerm Issuer Rating
VICKY FASHION: ICRA Keeps B Debt Ratings in Not Cooperating
VSP ENTERPRISES: ICRA Lowers Rating on INR10cr Loan to B+
WINMAX CERAMIC: ICRA Withdraws B Rating on INR1.53cr Term Loan
M A L A Y S I A
AIRASIA X: Seeks Debt Help With Flights Unlikely Until 2021
P H I L I P P I N E S
ABS-CBN CORP: Incurs PHP3-Billion Loss After Franchise Rejection
S I N G A P O R E
KRISENERGY LTD: Board Passes Up Potential Lifeline
- - - - -
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A U S T R A L I A
=================
CRAFTECH CUSTODIANS: Second Creditors' Meeting Set for Sept. 4
--------------------------------------------------------------
A second meeting of creditors in the proceedings of Craftech
Custodians Pty Limited has been set for Sept. 4, 2020, at 10:30
a.m. at the offices of O'Brien Palmer, Level 9, 66 Clarence Street,
in Sydney, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Sept. 3, 2020, at 3:00 p.m.
Daniel Frisken of O'Brien Palmer was appointed as administrator of
Craftech Custodians on Aug. 25, 2020.
LATITUDE AUSTRALIA 2020-1: Moody's Confirms Ba2 Rating on E Notes
-----------------------------------------------------------------
Moody's Investors Service has confirmed the ratings of Class C,
Class D and Class E Notes issued by Latitude Australia Personal
Loans Series 2020-1 Trust.
The confirmation concludes the review for downgrade initiated on
April 30, 2020 as a result of the deteriorating Australian economic
environment due to the coronavirus outbreak, which could impact the
performance of the underlying consumer loans.
The affected ratings are as follows:
Issuer: Latitude Australia Personal Loans Series 2020-1 Trust
Class C Notes, Confirmed at A2 (sf); previously on April 30, 2020
A2 (sf) Placed Under Review for Possible Downgrade
Class D Notes, Confirmed at Baa2 (sf); previously on April 30, 2020
Baa2 (sf) Placed Under Review for Possible Downgrade
Class E Notes, Confirmed at Ba2 (sf); previously on April 30, 2020
Ba2 (sf) Placed Under Review for Possible Downgrade
RATINGS RATIONALE
The rating confirmation reflects the balance between (1) the
increase in credit enhancement available to the affected notes, and
(2) the risk of deterioration in loan credit quality stemming from
the economic shocks triggered by the coronavirus outbreak.
Portfolio performance has been stable through the review period but
the proportion of loans subject to covid-related hardship
assistance has been increasing gradually. At the same time, note
subordination has increased. As a result, Moody's has concluded
that the net effect of risks posed to the notes is consistent with
the current ratings of the notes.
The increase in credit enhancement is driven by the amortization of
the portfolio and the repayment of the notes in sequential order
since closing. Following the July 2020 payment date, the note
subordination available for the Class C, Class D and Class E Notes
has increased to 19.7%, 14.6% and 6.7% respectively, from 15.7%,
11.6% and 5.3% at closing.
The risk of deterioration in the underlying loans' performance is
driven by both the proportion of loans currently subject to
covid-related hardship assistance, and the ongoing challenging
economic environment. As of 31 July 2020, about 10.1% of the pool
was under hardship assistance due to coronavirus disruptions with
most of these borrowers making partial instalment payments. Moody's
has also taken into consideration the potential performance
deterioration from borrowers located in Victoria that is currently
under strict lockdown.
Moody's notes that despite the covid-related hardship assistance
granted, principal and interest collections and excess spread in
the transaction have not deteriorated and arrears and losses remain
stable. As of July 2020, 1.18% of the outstanding pool was 30-plus
day delinquent, and 0.23% was 90-plus day delinquent. The portfolio
has incurred 1.18% of net losses to date which have all been
covered by excess spread. Moody's cash flow analysis has considered
the excess spread available in the transaction to cure losses.
Based on the observed delinquencies, losses, covid-related hardship
assistance and considering the ongoing economic disruptions and the
expected higher unemployment levels in 2020 and 2021, Moody's has
increased its default assumption for the remaining pool to 13.1%,
which represents a 20% increase from the initial default rate
assumption of 10.13% on the closing portfolio balance.
Moody's analysis has also considered a stress scenario with a 40%
increase from the initial default rate. The Class C Notes and Class
D Notes rating did not show any rating sensitivity to this stress
scenario, while the ratings of Class E Notes show some rating
sensitivity.
The rapid spread of the coronavirus outbreak, the government
measures put in place to contain it and the deteriorating global
economic outlook have created a severe and extensive credit shock
across sectors, regions and markets. Moody's analysis has
considered the impact on the performance of consumer credit from
the collapse in Australia's economic activity and increase in
unemployment in the second quarter and a gradual recovery in the
second half of the year. However, that outcome depends on whether
governments can reopen their economies, while also safeguarding
public health and avoiding a further surge in infections. As a
result, the degree of uncertainty around its forecasts is unusually
high. Moody's regards the coronavirus outbreak as a social risk
under its ESG framework, given the substantial implications for
public health and safety.
Latitude Australia Personal Loans Series 2020-1 Trust is an
Australian ABS. It is a cash securitization of personal loans
extended to obligors located in Australia. The receivables are
typically unsecured, although a portion is partially secured by
motor vehicles. All receivables were originated by Latitude
Personal Finance Pty Limited (Latitude).
The transaction is supported by a liquidity facility of 1.5% of the
balance of the notes, subject to a floor of AUD1,200,000, which can
cover approximately 4 months of interest payments if no collections
come in at all.
The principal methodology used in these ratings was Moody's
Approach to Rating Consumer Loan-Backed ABS published in July
2020.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that could lead to an upgrade of the ratings include (1)
performance of the underlying collateral that is better than
Moody's expectations, and (2) an increase in the notes' available
credit enhancement.
Factors that could lead to a downgrade of the ratings include (1)
performance of the underlying collateral that is worse than Moody's
expectations, (2) a decrease in the notes' available credit
enhancement, and (3) a deterioration in the credit quality of the
transaction counterparties.
NEW AGED: Muswellbrook Aged Care Facility Goes Into Liquidation
---------------------------------------------------------------
ABC News reports that elderly residents have had to leave the Mount
Providence Village aged care facility in Muswellbrook, New South
Wales, after the company that owns the property, New Aged Projects
No. 2, went into liquidation.
The ABC relates that truck driver, Len Kelman, who was named the
2019 Muswellbrook Citizen of the Year after delivering essential
supplies to drought-stricken farmers, has vowed to help elderly
residents.
"I only became aware of the situation here a fortnight ago," the
report quotes Mr. Kelman as saying. "I am the citizen of the year
and I'm very proud of that award but I'm more concerned about these
residents, our senior citizens [who have] lived in this town all
their life."
KordaMentha were appointed the receiver and manager at the start of
June, while SV Partners took on the role of liquidator, according
to the ABC.
It came less than three years after New Aged Projects No. 2 owner
and director, Dylan Walsh, purchased the Tindale Street property,
the report notes.
The ABC relates that Len Kelman said despite the financial
situation, he hoped the retirement village would get back on its
feet.
"Muswellbrook needs this facility, they need it to stay as it was,"
the report quotes Mr. Kelman as saying. "I've [sought] a couple of
friends to try and get a bit of rally, a bit of support in relation
to what our older citizens need.
"They've served this town well, they've paid a lot of contribution
and I'm pretty emotional about it."
The ABC says the owner of New Aged Projects No. 2, Dylan Walsh,
said he is not permitted to comment.
SV Partners said as the matter is ongoing, they are unable to
provide comment at this time, the ABC notes.
The ABC has contacted KordaMentha for comment.
RESIMAC TRIOMPHE 2017-2: S&P Affirms BB Rating on Class D Notes
---------------------------------------------------------------
S&P Global Ratings raised its ratings on two classes of notes
issued by Perpetual Trustee Co. Ltd. as trustee for RESIMAC
Triomphe Trust - RESIMAC Premier Series 2017-2. At the same time,
S&P affirmed its ratings on three classes of notes.
The rating actions reflect:
-- S&P's view of the credit risk of the underlying collateral
portfolio, which consists of full-documentation loans to
prime-quality borrowers originated by RESIMAC Ltd. This is a closed
pool, which means no additional loans are assigned to the trust
after the closing date. As of June 30, 2020, the pool has a current
weighted-average loan-to-value ratio of 63.2% and weighted-average
seasoning of 55.2 months. The asset pool has continued to amortize,
with a pool factor of around 48% and 2,136 loans.
-- That asset performance has been stable since inception, with a
very low level of defaults to date. As of June 30, 2020, loans more
than 30 days in arrears make up 0.59% of the current balance, of
which 0.41% are more than 90 days in arrears.
-- S&P's view of the credit support available, which is sufficient
to withstand the stresses we apply. Credit support comprises
lenders' mortgage insurance (LMI) on approximately 32% of the
portfolio covering 100% of the face value of all loans, accrued
interest, and reasonable costs of enforcement, as well as note
subordination for the rated notes.
-- That the transaction's cash flows support the timely payment of
interest and ultimate payment of principal to the noteholders under
our rating stress assumptions.
-- That for the class B notes there has been a buildup of credit
support to achieve a 'AAA (sf)' rating level and the class B notes
cash flows support a 'AAA (sf)' rating level.
-- That for the class C notes there has been a buildup of credit
support to achieve a 'AA- (sf)' rating level and the class C notes
cash flows support a 'AA- (sf)' rating level.
-- S&P's view of the various mechanisms to support liquidity
within the transaction. These mechanisms, which it believes are
sufficient under our stress assumptions to ensure timely payment of
interest, include an amortizing liquidity facility equal to 0.75%
of the aggregate invested amount of the notes with a floor of
A$562,200 and principal draws.
-- That loss of income for borrowers in the coming months due to
the effects of COVID-19 might put upward pressure on mortgage
arrears. S&P said, "We have recently updated our outlook
assumptions for Australian RMBS in response to changing
macroeconomic conditions as a result of the COVID-19 outbreak. We
have also applied a range of additional stresses in our analysis to
assess the rated notes' sensitivity to liquidity stress and the
possibility of higher arrears." As of June 30, 2020, borrowers with
COVID-19 related hardship arrangements make up 7.4% of the pool
balance.
S&P Global Ratings acknowledges a high degree of uncertainty about
the evolution of the coronavirus pandemic. The consensus among
health experts is that the pandemic may now be at, or near, its
peak in some regions but will remain a threat until a vaccine or
effective treatment is widely available, which may not occur until
the second half of 2021. S&P said, "We are using this assumption in
assessing the economic and credit implications associated with the
pandemic. As the situation evolves, we will update our assumptions
and estimates accordingly."
RATINGS RAISED
RESIMAC Triomphe Trust - RESIMAC Premier Series 2017-2
Class Rating To Rating From
B AAA (sf) AA (sf)
C AA- (sf) A (sf)
RATINGS AFFIRMED
RESIMAC Triomphe Trust - RESIMAC Premier Series 2017-2
Class Rating
A2 AAA (sf)
AB AAA (sf)
D BB (sf)
=========
C H I N A
=========
SHENGSHI ELEVATOR: Involuntary Chapter 11 Case Summary
------------------------------------------------------
Alleged Debtor: Shengshi Elevator International Holding
Group Inc.
No. 154, Shengbo Industrial Park
Yousong Road, Longhua Street
Longhua District, ShenZhen, China
Involuntary Chapter 11
Petition Date: August 24, 2020
Court: United States Bankruptcy Court
District of Nevada
Case No.: 20-14149
Name of Petitioner: DL Acquisitions Inc.
1712 Pioneer Avenue, Suite 115
Cheyenne, WY 82001
Nature of
Petitioner's Claim: Judgment
Petitioner's
Claim Amount: $53,679
Petitioner's Counsel: Samuel A. Schwartz, Esq.
SCHWARTZ LAW, PLLC
601 East Bridger Avenue
Las Vegas, NV 89101
Tel: (702) 385-5544
E-mail: saschwartz@nvfirm.com
A full-text copy of the Involuntary Petition is available for free
at PacerMonitor.com at https://is.gd/X0RVlI
TONGCHUANGJIUDING INVESTMENT: S&P Affirms 'BB/B' ICRs
-----------------------------------------------------
S&P Global Ratings affirmed its 'BB' long-term and 'B' short-term
issuer credit ratings on China-based Tongchuangjiuding Investment
Management Group Co. Ltd.'s (Jiuding Group).
S&P said, "We expect Jiuding Group to complete its business
restructuring to refocus on its private equity (PE) business and
proprietary investments. In our view, the company is likely to
maintain its franchise in China's competitive PE investment sector.
That said, its competitive advantages look mediocre when compared
globally. As the sector gets more polarized, we believe Jiuding
Group's competitive advantage is at the weaker end of top-tier PE
fund management companies in China.
"Considering the company's deleveraging efforts and plans, we
expect Jiuding Group to maintain its leverage at a moderate level
with adjusted debt-to-adjusted total equity (ATE) below 0.8x over
the next 12 months. Jiuding Group has sold its insurance
subsidiary, FTLife Insurance Co. Ltd. (FTLife), for HK$21.5 billion
and has paid off part of its U.S. dollar-denominated debts and
onshore debts. Jiuding Group's total debt at its level, excluding
its securities subsidiary, decreased to about Chinese renminbi
(RMB) 10.0 billion as of Dec. 31, 2019, from approximately RMB16.1
billion as of Dec. 31, 2018, under the company's deleveraging
process. We expect this trend will continue in 2020."
Despite the deleveraging efforts, Jiuding Group's interest coverage
remains weak and investment income volatility may weigh on the
group's financial risks. S&P said, "In our view, the company's
profitability may turn more volatile as it focuses more on
proprietary investments in PE funds and secondary-market equities.
The continued decrease of Jiuding Group's fee income may add to the
volatility pressure, along with further shrinking of its PE funds'
assets under management over the next one to two years. Strong
competition has continuously put pressure on PE management fees in
recent years. Although we expect the pressure on fee income will
continue in 2020, the intensity is likely to ease after a period of
sharp decline in management fees."
S&P said, "We believe foreign currency liquidity risk associated
with Jiuding Group's outstanding U.S.-dollar debt has increased
because the company has limited offshore cash flow generation after
selling its Hong Kong-based life insurance arm. Capital controls in
China could test the group's liquidity management.
"The rating on Jiuding Group reflects our expectation that the
resolution of the ongoing investigation by China Securities
Regulatory Commission (CSRC) is unlikely to substantially hurt the
group's business. The rating also reflects the aggregate group
credit profile, which is based on an equity weighting of the
group's two business segments: (1) PE fund management, proprietary
investments, and other small businesses; and (2) controlled
brokerage arm JZ Securities Co. Ltd."
The stable outlook reflects S&P's expectation that Jiuding Group
will complete its business restructuring by selling noncore assets
and focusing on its core PE business and proprietary investment
business over the next 12 months. That will help keep the group's
leverage at a moderate level.
S&P may lower the ratings if:
-- The resolution of the ongoing CSRC investigation has a material
effect on Jiuding Group's business profile;
-- The company aggressively increases leverage after the
restructuring; or
-- S&P considers the PE business' competitive advantages or the
brokerage business segment to be weaker.
In a remote scenario, S&P may upgrade Jiuding Group if all of the
following scenarios materialize:
-- The group sustainably maintains a low financial leverage (debt
to ATE below 0.8x) with an adjusted EBITDA-to-interest coverage
above 10x.
-- The group has a demonstrated track record of foreign currency
liquidity management.
Jiuding Group builds a record of sound and stable profitability.
=================
H O N G K O N G
=================
GENTING HONG KONG: Braces for Earnings Drop Amid Pandemic
---------------------------------------------------------
Bloomberg News reports that one of Southeast Asia's biggest
conglomerates faces its gravest challenge yet as the pandemic roils
Genting group's collection of casinos, cruises and resorts.
Cracks were already starting to show even before cruise operator
Genting Hong Kong Ltd. said it would suspend payments to creditors,
Bloomberg says. This week, the group holding company and a
Malaysian unit could show some of their worst declines to earnings
as second-quarter results are due, Bloomberg says.
According to Bloomberg, Genting adds to a growing list of global
business empires whose reliance on travel and leisure made them
vulnerable to border closures and restrictions imposed by countries
seeking to curb the spread of the coronavirus. The conglomerate has
resorted to unprecedented moves to adapt, including embarking on
its first group-wide pay cuts and shrinking its workforce at its
Malaysian unit.
"There's a risk of course of a related party transaction with one
of the Genting group bailing out Genting HK and if that happens,
then clearly the group can be hurt," Bloomberg quotes Mak Yuen
Teen, associate professor at the National University of Singapore
Business School, who specializes in corporate governance, as
saying.
While Genting Hong Kong is a separate entity and defaults at that
level won't trigger cross defaults on the group's debt, Group
Chairman Lim Kok Thay's role as a common shareholder has sent
jitters across the conglomerate, Bloomberg notes.
It's likely that Lim will be able to work out a deal with creditors
considering the family name and their reputation, said Banny Lam,
head of research at CEB International Investment Corp., Bloomberg
relays. The cruise operator may have deliberately slipped into a
technical default to force creditors to work with them, he added.
"The message to creditors is clear: If you insist on a default, we
may declare bankruptcy and you lose everything," Bloomberg quotes
Mr. Lam as saying. "They're pushing creditors and banks for a
restructuring and more time."
About Genting Hong Kong
Genting Hong Kong Limited is a Hong Kong-based investment holding
company principally engaged in cruise businesses. The Company
operates through two segments. Cruise and Cruise-related Activities
segment is engaged in the sales of passenger tickets, the sales of
foods and beverages onboard, shore excursion, as well as the
provision of onboard entertainment and other onboard services.
Non-cruise Activities segment is engaged in onshore hotel
businesses, travel agency, aviation businesses, entertainment
businesses and shipyard businesses, among others. The Company
operates businesses in Asia Pacific, North America and Europe,
among others.
=========
I N D I A
=========
ADH CHEMICALS: ICRA Reaffirms B+ Rating on INR1.0cr Cash Loan
-------------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of ADH
Chemicals Private Limited (ADH), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based 1.00 [ICRA]B+ (Stable); Reaffirmed
Limits–Cash
Credit
Non-fund 3.50 [ICRA]A4; Reaffirmed
Based Limits–
Letter of Credit
Non-fund 0.35 [ICRA]A4; Reaffirmed
Based–PSR
Untied Limits 5.15 [ICRA]B+ (Stable)/[ICRA]A4;
Reaffirmed
Rationale
The reaffirmation of ratings takes into consideration the small
scale of operations of ADH along with nominal profits and cash
accruals from the business. The ratings consider the company's
highly fragmented and trading nature of operations with the
presence of a large number of players, and limited value addition,
which restrict pricing flexibility and keep margins under check.
The company primarily caters to the plywood manufacturers, thus
exposing its operations to the cyclicality of the plywood industry.
The ratings are further constrained by ADH's exposure to forex risk
in the absence of a formal hedging mechanism.
The ratings, however, favorably consider the long experience of the
promoters in the chemical trading business, and the company's
conservative capital structure and moderate level of debt
protection metrics.
The Stable outlook on the [ICRA]B+ rating reflects ICRA's opinion
that ADH will continue to benefit from the long experience of the
promoters in the chemical trading business.
Key rating drivers and their description
Credit strengths
* Long experience of the promoters in chemical trading business:
The long experience of the promoters in the chemical trading
business for over three decades mitigates operational risk to an
extent.
* Conservative capital structure: The capital structure of the
company has remained conservative with a gearing of 0.35 times as
on March 31, 2020 (provisional) on account of low reliance on
external debt. However, the coverage indicators continued to remain
at a low level over the past years.
Credit challenges
* Small scale of current operations, nominal profits and cash
accruals from business: The operating income of the company has
remained small over the past few years. Moreover, the same declined
to INR7.88 crore in FY2020 (provisional) from INR11.80 crore in
FY2019, primarily on account of lower volume of sales. ICRA notes
that the profits and cash accruals from the business have also
remained nominal in the past few years.
* Foreign exchange rate fluctuation risk: The company imports
chemicals from Russia, Taiwan etc. This exposes ADH to foreign
exchange rate fluctuation risk in the absence of a formal hedging
mechanism.
* Fragmented and intensely competitive nature of the industry: The
company's profitability remains restricted due to its trading
nature of business with limited value addition. The chemical
trading business is highly fragmented and is characterised by
intense competition from many organised and unorganised players,
which restricts its pricing flexibility and keeps its margins under
check.
* Vulnerability of profits to business cycles of plywood industry
and adverse fluctuations in chemical prices: The company caters
mainly to the plywood manufacturers, so ADH remains exposed to
sectoral concentration risk and its operations remain vulnerable to
the cyclicality of the industry.
Liquidity position: Stretched
The average utilisation of working capital limits stood at a low
level. ICRA notes that cash flow from operations from the business
would be sufficient to meet the repayment obligations, however, any
decline in profitability and lower-than expected cash accruals
would exert pressure on the liquidity position.
Rating sensitivities
Positive triggers - ICRA may upgrade ADH's ratings if the company
is able to increase its scale of operations substantially, while
improving its profitability and working capital cycle.
Negative triggers - Pressure on ADH's rating may arise if there is
a decline in revenues and/or profit margins. An increase in working
capital intensity might also exert pressure on the ratings.
Incorporated in 2008, ADH Chemicals Private Limited (ADH) trades in
abrasives, chemicals, tapes, gloves etc in the domestic market. The
major portion of its revenue is generated from chemicals. The
company carries its operations from Kolkata, West Bengal and sales
are made in the eastern and north eastern parts of the country. The
clientele of the company consists of mainly plywood manufacturing
units.
ADITYA AGRO: ICRA Keeps B+ on INR27cr Loans in Not Cooperating
--------------------------------------------------------------
ICRA said the ratings for the INR27.00-crore bank facilities of
Aditya Agro Food continue 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- 22.00 [ICRA]B+(Stable) ISSUER NOT
Fund Based/CC COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
Long Term– 5.00 [ICRA]B+(Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
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
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
rating action has been taken in accordance with ICRA's policy in
respect of non-cooperation by a rated entity available at
www.icra.in.
Aditya Agro Foods (AAF) was incorporated as a partnership firm in
the year 2009 and is engaged in the milling of paddy to producing
raw and boiled rice. The firm is promoted by Mr. Rajendra Reddy and
his family members who have extensive experience in the rice
milling industry. The firm's rice mill is located near Mutchumilli
village in East Godavari district of Andhra Pradesh with an
installed production capacity of 72,000 MTPA.
AIRCEL GROUP: ARC Seeks Clarity on Rejection of Asset Sale Plan
---------------------------------------------------------------
Livemint.com reports that the association of asset reconstruction
companies (ARC) has written to the Reserve Bank of India (RBI)
seeking clarity on why the regulator has rejected the resolution
plan for bankrupt telecom operator Aircel Group, said a person
aware of the development.
Accordng to Livemint.com, the central bank has rejected the
resolution plan submitted by UV Asset Reconstruction Co Ltd for
acquiring assets of Aircel citing that the plan does not conform to
the guidelines of the Securitization and Reconstruction of
Financial Assets and Enforcement of Security Interest (Sarfaesi)
Act, said the person requesting anonymity. The reserve bank has
also rejected other insolvency resolution plans submitted by UV ARC
besides that for Aircel, the person said.
"We have written to the RBI. We want to know the reason for
rejecting the plan of UV ARC because IBC allows asset
reconstruction companies to participate in resolution process . . .
IBC was introduced much later than Sarfaesi and it overrides all
other previous acts," the person, as cited by Livemint.com, said.
While the Insolvency and Bankruptcy Code (IBC) was introduced in
2016, the Sarfaesi Act has been in place since 2002.
The National Company Law Tribunal had in June approved a INR6,630
crore bid by UV ARC for Aircel, Livemint.com recalls. UV ARC has
also emerged as the highest bidder for another bankrupt telco,
Reliance Communications Ltd. Both resolution plans have been
challenged by the department of telecommunications (DoT) as it
fears not recovering its dues, including adjusted gross revenue
(AGR), from the resolution of these bankrupt telcos, Livemint.com
relates.
Livemint.com says the DoT has been classified as an operational
creditor in the resolution processes of Aircel and RCom, implying
that the government may recover little or next to nothing. As per
IBC, financial creditors - in this case the banks - have the
greater right on recovery proceeds and get preference over
operational creditors.
While Aircel has a liability of INR12,289 crore in AGR dues to the
government, RCom owes INR25,199 crore, including spectrum usage
charges and licence fees, Livemint.com adds.
About Aircel Limited
Aircel Limited, along with its subsidiaries Aircel Cellular Limited
and Dishnet Wireless Limited, is a telecom service provider with a
pan India presence. Aircel offers GSM-based 2G services in all the
22 telecom circles and has also introduced 3G services in select
geographies.
Aircel Ltd filed for bankruptcy on Feb. 28, 2018, pressured by a
high debt pile and mounting losses following a price war triggered
by a telecom upstart, according to Reuters. Talks between Aircel,
74% owned by Malaysia's Maxis Communications Bhd, and Reliance
Communications Ltd (RCom) to combine their wireless business was
called off in late 2017 due to regulatory and legal uncertainties
and interventions by various parties, Reuters said.
Aircel, whose debt amounts to INR155 billion (US$2.38 billion),
then tried unsuccessfully to restructure its debt, Reuters
related.
ARISTO INDUSTRIES: ICRA Keeps B+ on INR12cr Debt in Not Cooperating
-------------------------------------------------------------------
ICRA said the rating for the bank facilities of Aristo Industries
(AI) continues to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Unallocated 12.00 [ICRA]B+ (Stable)/A4 ISSUER NOT
Limits COOPERATING, Rating continues
to remain in the 'Issuer Not
Cooperating' category
ICRA has continued the ratings for the bank facilities of AI to the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B+ (Stable)/A4 ISSUER NOT COOPERATING".
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.
The rating action has been taken in accordance with ICRA's policy
in respect of non-cooperation by a rated entity available at
www.icra.in.
Incorporated in 2009, Aristo Industries (AI) used to manufacture
polyfibre mattresses from its unit in Tinsukia, Assam and traded in
fabrics. The company started merchant trading in steel rebars and
shafts from FY2015 onwards.
ATC FOODS: ICRA Lowers Rating on INR50cr Cash Loan to B+
--------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of ATC
Foods Private Limited (AFPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 50.00 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; Rating downgraded
from [ICRA]BB (Stable) and
moved to the 'Issuer Not
Cooperating' category
Rationale
The rating downgrade is because of lack of adequate information
regarding AFPL 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 a rated entity"
available at www.icra.in. 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 ATC Foods 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 the aforesaid policy of ICRA, a rating view has
been taken on the entity based on the best available information.
Incorporated in 2011, AFPL is involved in milling, processing and
sorting of basmati and non-basmati rice. The company's plant at
Delhi has a milling capacity of 60 tonnes per day. The company
exports basmati rice as well as sells to the domestic market. The
direct exports are made to countries such as Dubai and Saudi Arabia
and the remaining is sold through exporters to European countries.
AURO INDUSTRIES: ICRA Keeps B+ on INR8cr Debt in Not Cooperating
----------------------------------------------------------------
ICRA said the rating for the bank facilities of Auro Industries
Limited (AIL) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 8.00 [ICRA]B+ (Stable); ISSUER NOT
Cash Credit COOPERATING; Rating continues
to remain under the 'Issuer Not
Cooperating' category
Non Fund 2.25 [ICRA]A4 ISSUER NOT
based-Letter COOPERATING; Rating continues
of Credit to remain in the 'Issuer Not
Cooperating' category
Non-Fund 0.75 [ICRA]A4 ISSUER NOT
based-Bank COOPERATING; Rating continues
Guarantee to remain in the 'Issuer Not
Cooperating' category
Rationale
The ratings for the INR11.00 crore bank facilities of AIL continues
to remain under the 'Issuer Not Cooperating' category. The rating
is denoted as "[ICRA]B+ (Stable)/[ICRA]A4; ISSUER NOT
COOPERATING".
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.
The rating action has been taken in accordance with ICRA's policy
in respect of non-cooperation by a rated entity available at
www.icra.in.
In 1990, Auro Enterprises was set up as a proprietorship firm by
Mr. Madhusudhan Goenka for manufacturing foundry fluxes. In 1995,
it was reconstituted as a corporate body and renamed as Auro
Industries Limited (AIL). The company is now involved in dealership
and distribution of various electrical equipments/ accessories such
as uninterrupted power systems (UPS) of Ador Powerton Limited,
light fittings of Philips India Limited, and insulators of XHDC
Special Ceramics Co. Ltd. (China) etc. AIL is also involved in
trading of textiles, steel products and other products. Besides,
the company is the sole C&F agent for automotive batteries of
Tractors and Farm Equipment Limited in West Bengal.
BRATTLE FOODS: Ind-Ra Lowers Issuer Rating to B+, Outlook Negative
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Brattle Foods
Private Limited's (BFPL) Long-Term Issuer Rating to 'IND B+' from
'IND BBB' and simultaneously placed it on Rating Watch Negative
(RWN). The Outlook was Negative.
The instrument-wise rating actions are:
-- INR430.5 mil. (reduced from INR538.3 mil.) Term loan due on
April 2023 downgraded and placed on RWN with IND B+/RWN.
The RWN reflects continuing uncertainty on the lease rental
payments from BFPL's lessees and a lack of visibility on the
availability of sufficient liquidity required to support the
company's financial obligations by the due date of September 1,
2020.
KEY RATING DRIVERS
The downgrade reflects the non-payment of lease rentals by BFPL's
lessees - Future Supply Chain Solutions Limited and Future Retail
Limited - since March 2020. This is due to deterioration in their
credit profiles, as their businesses have been adversely impacted
by the COVID-19 led lockdown. BFPL's entire revenue stream is
dependent on the lease rental payments from the lessees, and it has
a master lease agreement, which ensures no leakage of revenue
despite the non-usage of assets or lack of operations.
Liquidity Indicator - Poor: BFPL had cash and cash equivalents of
just INR7.3 million, as of March 31, 2020 (FY19: INR31.5 million).
BFPL's parent company - Syntex Trading & Agency Private Limited
(STAPL) – had in the past infused funds into BFPL for any working
capital requirements. However, Ind-Ra believes STAPL would not be
able to support BFPL with sufficient cash, given that it is in the
same line of business and is dependent on the Future Group
companies for the majority of its revenues. Hence, Ind-Ra expects
BFPL's liquidity to worsen on account of the non-receipt of rental
payments from the lessees by end-August 2020. BFPL's cash flow from
operations increased to INR197.8 million in FY20 (FY19: INR65.7
million) due to improved EBITDA.
BFPL had availed of the Reserve Bank of India-prescribed moratorium
from March-August 2020 and will be required to repay one month's
principal and six months' accrued interest payments – estimated
at around INR33.2 million by Ind-Ra - on 1 September 2020. Ind-Ra
expects that any further failure to repay lease rental payments by
the lessees would result in severe liquidity stress on BFPL as it
does not have any other revenue stream.
The ratings factor in BFPL's continued small scale of operations.
The company's revenue grew to INR230.95 million in FY20 (FY19:
INR168.49 million) as the lessees paid the entire rental amount, as
indicated in the lease agreement, vis-a-vis the significantly
lower-than-actual amount paid in FY19 and FY18. However, Ind-Ra
expects the company's revenue to fall in FY21 due to the COVID-19
driven lockdown.
The ratings, however, are supported by the company's high margins
of 98.6% in FY20 (FY19: 98.9%), despite low return on capital
employed of 5.1% (negative 1.9%), due to its nature of business.
Ind-Ra expects BFPL's margins to dip, but remain at high levels, in
FY21 due to lower operating costs.
The ratings are also however, are supported by the company's
comfortable credit metrics. BFPL's interest coverage (operating
EBITDA/gross interest expense) improved to 4x in FY20 (FY19: 2.3x)
and net leverage (adjusted net debt/operating EBITDAR) to 2.8x (5x)
due to an increase in the absolute EBITDA to INR227.7 million
(INR166.6 million). Although Ind-Ra expects the credit metrics to
fall in FY21 on account of high fixed costs and likely lower
revenue, it expects the ratios to improve FY22 onwards due to
reduction in the debt levels subject to the timely principal
repayments.
RATING SENSITIVITIES
The RWN indicates that the ratings may be downgraded or affirmed.
Ind-Ra is likely to resolve the RWN in the first week of September
2020 once greater clarity is received on the lease rental payments
from the lessees or the availability of sufficient cash flows to
meet the financial obligations on September 1, 2020 and the
resultant impact on the company's credit profile becomes clear.
COMPANY PROFILE
BFPL is in the business of leasing the assets on long-term
operating leases to the Future Group companies, Future Supply Chain
Solutions and Future Retail Limited. BFPL is a 100% subsidiary of
STAPL.
C.G. CHANDRAPPA: ICRA Cuts Rating on INR5cr LT Loan to B+
---------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of C.G.
Chandrappa, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.00 [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
Short Term- 6.40 [ICRA]A4 ISSUER NOT
Non-Fund COOPERATING; Rating continues
Based to remain in the 'Issuer Not
Cooperating' category
Rationale
The ratings are downgrade because of lack of adequate information
regarding C.G. Chandrappa 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 C.G. Chandrappa, 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.
C.G.Chandrappa, based in Bangalore, Karnataka is a proprietorship
firm incorporated in 1980 and is involved in civil contractor work
majorly in construction of roads, bridges and asphalting works. The
firm's clientele comprises of government entities like PWD. The
firm is registered as "Class 1 PWD Contractor", Karnataka. The
areas of operations mainly limited in and around Karnataka. The
firm over the years has executed many projects as a prime
contractor as well as sub-contractor. The plant is located at
Hennur, Bangalore with 60/90ton per hour manufacturing capacity.
DARJEELING POWER: ICRA Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------------
ICRA said the rating for the bank facilities of Darjeeling Power
Private Limited (erstwhile Darjeeling Power Limited) continues to
remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term 22.75 [ICRA]B+ (Stable); ISSUER NOT
Fund based– COOPERATING; Rating continues
Term Loan to remain under the 'Issuer Not
Cooperating' category
Long Term 0.78 [ICRA]B+ (Stable); ISSUER NOT
Fund based– COOPERATING; Rating continues
Cash Credit to remain under the 'Issuer Not
Cooperating' category
Long Term– 1.47 [ICRA]B+ (Stable); ISSUER NOT
Unallocated COOPERATING; Rating continues
Limits to remain under the 'Issuer Not
Cooperating' category
Rationale
The ratings for the INR25.00 crore bank facilities of Darjeeling
Power continues to remain under the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]B+ (Stable); ISSUER
NOT COOPERATING".
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. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
Darjeeling Power Private Limited (erstwhile known as Darjeeling
Power Limited) is a Special Purpose Vehicle (SPV) incorporated to
develop, own and operate a 3 MW small hydro power (SHP) project
known as Shaung Mini Hydropower Project. The project is located in
Kinnaur District of Himachal Pradesh (HP). Darjeeling Power Private
Limited was promoted by the Mumbai based Somani Group which is
engaged in education as well as hydro power. On March 23, 2016, the
entity converted its legal status to a Private Limited Company from
a Limited Company.
EASTERN GASES: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA said the rating for the bank facilities of Eastern Gases
Limited (EGL) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based– 41.00 [ICRA]D ISSUER NOT COOPERATING;
Cash Credit Rating continues to remain under
'Issuer Not Cooperating' category
Non-Fund 6.00 [ICRA]D ISSUER NOT COOPERATING;
Based Bank Rating continues to remain under
Guarantee 'Issuer Not Cooperating' category
Rationale
The rating for the INR47.00 crore bank facilities of EGL continues
to remain under 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]D/[ICRA]D ISSUER NOT COOPERATING".
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.
Eastern Gases Limited (EGL) is involved in the bottling and
marketing of Liquefied Petroleum Gas (LPG) to industrial consumers
through bulk supplies and to distributors/ dealers through
cylinders under the brand name "East Gas". It is one of the largest
parallel marketers of LPG in Eastern India. Incorporated as a
public limited company in 1995, EGL started commercial production
from its production facility at Durgapur in 1998. The manufacturing
facilities of the company are based out of Durgapur, Bangalore and
Hyderabad. The three plants have a combined production capacity of
70 metric tonne per annum (MTPA).
FIVEBROS FORGINGS: ICRA Cuts Rating on INR7cr Cash Loan to B+
-------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Fivebros
Forgings Pvt. Ltd. (FFPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based– 7.00 [ICRA]B+ (Stable) ISSUER NOT
Cash Credit COOPERATING; Rating downgraded
from [ICRA]BB+ (Stable) and
continues to remain in the
'Issuer Not Cooperating'
Category
Fund Based– 0.90 [ICRA]B+ (Stable) ISSUER NOT
Term Loan COOPERATING; Rating downgraded
from [ICRA]BB+ (Stable) and
continues to remain in the
'Issuer Not Cooperating'
Category
Fund based- (4.50) [ICRA]A4 ISSUER NOT
PCFC COOPERATING; Rating downgraded
from [ICRA]A4+ and continues to
remain in the 'Issuer Not
Cooperating' category
Fund based- (1.00) [ICRA]A4 ISSUER NOT
EBD COOPERATING; Rating downgraded
from [ICRA]A4+ and continues to
remain in the 'Issuer Not
Cooperating' category
Fund based- 0.06 [ICRA]A4 ISSUER NOT
Forward COOPERATING; Rating downgraded
Contract from [ICRA]A4+ and continues to
remain in the 'Issuer Not
Cooperating' category
Non fund 0.50 [ICRA]A4 ISSUER NOT
based-Bank COOPERATING; Rating downgraded
Guarantee from [ICRA]A4+ and continues to
remain in the 'Issuer Not
Cooperating' category
Non fund 3.00 [ICRA]A4 ISSUER NOT
based-Letter COOPERATING; Rating downgraded
of Credit from [ICRA]A4+ and continues to
remain in the 'Issuer Not
Cooperating' category
Fund based/ 1.04 [ICRA]B+ (Stable)/A4 ISSUER NOT
non fund based- COOPERATING; Rating downgraded
Unallocated from [ICRA]BB+ (Stable)/A4+ and
continues to remain in the
'Issuer Not Cooperating'
Category
Rationale
The rating downgrade is because of lack of adequate information
regarding FFPL 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 a rated entity"
available at www.icra.in. 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 Fivebros Forgings 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 the aforesaid policy of ICRA, a rating view has
been taken on the entity based on the best available information.
Incorporated in 1999, Fivebros Forgings Pvt. Ltd. (FFPL) is
promoted by Mr. Yogesh Vadhar and Mr. K K Sayal, who acquired the
company when it was a sick unit. The company manufactures flanges
and forgings used in oil and gas, and petrochemical industries. The
company has its manufacturing location in Ankleshwar, Gujarat and
has a manufacturing capacity of 5000 MTPA (Forged) and 2000 MTPA
(Machined).
GANESH AGRO: ICRA Lowers Rating on INR25cr Loan to B+
-----------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Shri
Ganesh Agro Foods, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Unallocated 25.00 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; Rating downgraded
from [ICRA]BB (Stable) and
moved to the 'Issuer Not
Cooperating' category
Rationale
The rating downgrade is because of lack of adequate information
regarding Shri Ganesh Agro Foods 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 a rated entity" available at www.icra.in. 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 Shri Ganesh Agro Foods, 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 the aforesaid policy of ICRA, a rating view has
been taken on the entity based on the best available information.
Incorporated in 2011, Shri Ganesh Agro Foods is involved in
milling, processing and sorting of basmati and non-basmati rice.
The company's plant at Karnal has a milling capacity of 26 tonnes
per day. The company exports basmati rice as well as sells it in
the domestic market. The direct exports are made to countries such
as Dubai and Saudi Arabia and the remaining is sold through
exporters to European countries.
HAMSA MINERALS: ICRA Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA said the ratings for the bank facilities of Hamsa Minerals &
Exports Continues continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 3.50 [ICRA]D ISSUER NOT COOPERATING;
Fund Based/CC Rating continues to remain in
the 'Issuer Not Cooperating'
category
Long Term- 3.35 [ICRA]D ISSUER NOT COOPERATING;
Fund Based TL Rating continues to remain in
the 'Issuer Not Cooperating'
category
Short Term- 10.00 [ICRA]D ISSUER NOT COOPERATING;
Fund Based Rating continues to remain in
the 'Issuer Not Cooperating'
category
Long Term/ 2.35 [ICRA]D/[ICRA]D ISSUER NOT
Short Term- COOPERATING; Rating continues
Unallocated to remain in the 'Issuer Not
Cooperating' category
Rationale
The ratings for the INR19.20-crore bank facilities of Hamsa
Minerals & Exports Continues to remain under 'Issuer Not
Cooperating' category'. The ratings are denoted as
"[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING".
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 2004, Hamsa Minerals & Exports is a partnership
firm engaged in granite quarrying and exporting dressed granite
blocks to countries such as China, Hong Kong, Taiwan and
Switzerland. Initially, the firm was into iron ore exports business
and subsequently got 100 per cent EOU (Export Oriented Unit)
certificate from Vishakhapatnam SEZ to export squared and dressed
granite blocks
HARIOM INGOTS: ICRA Keeps B+ Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA said the rating for the bank facilities of Hariom Ingots &
Power Pvt. Ltd. (HIPPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 20.00 [ICRA]B+ (Stable); ISSUER NOT
Cash Credit COOPERATING; Rating continues
to remain under the 'Issuer Not
Cooperating' category
Fund based– 8.16 [ICRA]B+ (Stable); ISSUER NOT
Term Loan COOPERATING; Rating continues
to remain under the 'Issuer Not
Cooperating' category
Non-Fund 5.00 [ICRA]A4 ISSUER NOT
based Limits COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
Unallocated 4.84 [ICRA]A4 ISSUER NOT
COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
Rationale
The ratings for the INR38.00 crore bank facilities of HIPPL
continues to remain under the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]B+ (Stable)/[ICRA]A4; ISSUER NOT
COOPERATING".
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.
The rating action has been taken in accordance with ICRA's policy
in respect of non-cooperation by a rated entity available at
www.icra.in.
Incorporated in 2004, HIPPL is a closely-held private limited
company, promoted by the Bhilai-based Agrawal family. HIPPL has
facilities in Bhilai, Chhattisgarh for manufacturing MS billets and
TMT bars with an annual capacity of 60,000 metric tonnes each. The
TMT bars manufactured by the company are sold under the brand
'Hariom TMT'. In FY2016, the company started manufacturing
epoxy-coated TMT bars, which are more durable than the normal TMT
bars and are sold under the brand 'Hariom Epoxy Shield'. In
addition, HIPPL is involved in the trading of TMT bars and various
rolled products manufactured by other steel players.
JAGATPAL SINGH: ICRA Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA said the rating for the bank facilities of M/S Jagatpal Singh
(JS) continues to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 0.60 [ICRA]B+ (Stable); ISSUER NOT
Cash Credit COOPERATING; Rating continues
to remain under the 'Issuer Not
Cooperating' category
Non-Fund 4.50 [ICRA]B+ (Stable)/[ICRA]A4;
based-Bank ISSUER NOT COOPERATING;
Guarantee Rating continues to remain
in the 'Issuer Not Cooperating'
category
Fund Based/ 0.40 [ICRA]B+ (Stable)/[ICRA]A4;
Non Fund Based ISSUER NOT COOPERATING;
Limit–Untied Rating continues to remain
Limits in the 'Issuer Not Cooperating'
category
Rationale
The ratings for the INR5.50 crore bank facilities of JS continues
to remain under the 'Issuer Not Cooperating' category. The rating
is denoted as "[ICRA]B+ (Stable)/[ICRA]A4; ISSUER NOT
COOPERATING".
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.
The rating action has been taken in accordance with ICRA's policy
in respect of non-cooperation by a rated entity available at
www.icra.in.
Established in 1980 as a proprietorship concern, M/S Jagatpal Singh
(JS) is involved in civil construction business, including
construction of buildings and bridges. The firm is registered as
Class-A contractor with the Public Works Department of
Chhattisgarh.
JAIN IRRIGATION: SBI May Consider Debt Restructuring Next Week
--------------------------------------------------------------
Ankur Mishra at Financial Express reports that State Bank of India
(SBI), the lead creditor to Jain Irrigation Systems (JISL), is
likely to consider a INR4,000-crore debt restructuring plan for the
company next week, sources close to the development said.
According to the restructuring plan, of the INR4,000-crore debt,
INR2,800 crore will be converted into a sustainable portion,
payable at 8.5% interest to lenders, FE relates. The remaining
INR1,200- crore unsustainable debt will be converted into
debentures, payable after eight years at 0.01% interest. The
lenders will also get 15% stake in Jain Irrigation after the
restructuring, sources told FE.
The plan has been drafted in consultation with lead lender SBI, the
source added. "The lenders will now approve the restructuring plan
at individual board levels, SBI may consider approving the plan
next week," a senior bank official told FE. The committee of
creditors (CoC) will take up the plan for approval after clearance
from individual bank boards.
Lenders had earlier signed an inter creditor agreement (ICA) for
resolving JISL in accordance with a June 7 circular of the Reserve
Bank of India, FE notes. Rating firms have downgraded the company
due to delay in servicing debt. While S&P has downgraded it to
‘D' (default grade) for missing interest payments due on February
1, Care Ratings had downgraded it to ‘D' last year due to a delay
in servicing debt.
The company reported a net loss of INR228 crore in the March
quarter, against INR82.3 crore net profit during the same period
last year, FE discloses. The revenues saw 72% year-on-year (Y-o-Y)
decline in the March quarter to INR3,825 crore, compared to
INR13,346 crore in March 2019. The company had attributed
significant drop in revenue to Covid-19 and liquidity tightening.
FE adds that earlier this month, speaking after March quarter
earnings, vice-chairman and MD Anil Jain said, "The debt resolution
was initiated in second quarter of the year 2019-20, and we have
progressed a lot on the path towards debt resolution plan and are
now in final stages subject to approvals from lenders."
About Jain Irrigation
Jain Irrigation Systems Limited is engaged in manufacture of
plastic products, and manufacture of fruit or vegetable juices,
their concentrates squashes and powder. The Company has
approximately 30 manufacturing plants globally.
As reported in the Troubled Company Reporter-Asia Pacific on July
27, 2020, ICRA has revised the long-term rating of Jain Irrigation
Systems Limited (JISL) from [ICRA]C to [ICRA]D and short- term
rating from [ICRA]A4 to [ICRA]D and simultaneously reassigned the
long term rating from [ICRA]D to [ICRA]C and the short-term rating
from[ICRA]D to [ICRA]A4. The rating action follows commercial
dispute with the lender resulting in a one-off instance of delay by
the company on servicing the interest due on its term loan with
Exim Bank for the month of January 2020. However, following the
regularization of the same from February 2020 onwards, ICRA has
revised the ratings from [ICRA]D to [ICRA]C/[ICRA]A4.
KIRPA FOODS: ICRA Withdraws B+ Rating on INR28cr Term Loan
----------------------------------------------------------
ICRA has withdrawn the ratings on certain bank facilities of Kirpa
Foods (KF), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based 28.00 [ICRA]B+ (Stable); ISSUER NOT
Term Loan COOPERATING; Withdrawn
Fund based 3.00 [ICRA]B+ (Stable); ISSUER NOT
Cash Credit COOPERATING; Withdrawn
Rationale
The rating assigned to KF has been withdrawn at the request of the
company and based on the no objection certificate received from the
banker, and in accordance with ICRA's policy on withdrawal and
suspension. ICRA is withdrawing the rating and that it does not
have information to suggest that the credit risk has changed since
the time the rating was last reviewed.
Key rating drivers
The key rating drivers have not been captured as the rated
instrument(s) are being withdrawn.
Liquidity position: Liquidity position has not been captured as the
rated instruments are being withdrawn.
Rating sensitivities: Rating sensitivities have not been captured
as the rated instruments are being withdrawn
Incorporated in 2014, KF is a partnership concern involved in
milling, processing and sorting of Basmati rice. Its plant at
Fazilka has a milling capacity of 8 tonne per hour. A total capital
expenditure of INR13 crore was incurred to set up the plant. KF
recorded a net profit of INR0.05 crore on an OI of INR91.36 crore
in FY2017 against a net profit of INR0.05 crore on an OI of
INR96.99 crore in the previous year. As per provisional figures for
the current fiscal year, the firm has achieved INR103 crore of OI
till January 2018.
Established in October 2013, KBR is a partnership firm with Mr.
Bhagwan Dass Singla, Mr. Krishan Murari and Mrs Adesh Singla as
partners. The firm is involved in the milling, processing and
trading of Basmati and non-Basmati rice. KBR's plant is located at
Jundla near Karnal (Haryana).
MEGHNAD SAHA: ICRA Lowers Rating on INR10cr Loan to B+
------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Meghnad
Saha Institute of Technology (MSIT), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Overdraft limit 10.00 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; Rating downgraded
from [ICRA]BB (Stable) and
moved to 'Issuer Not
Cooperating' category
The rating downgrade is because of lack of adequate information
regarding MSIT'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 a rated entity"
available at www.icra.in. 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 Meghnad Saha Institute of Technology, 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 the aforesaid policy of ICRA, a rating view has
been taken on the entity based on the best available information.
Established in 2001, MSIT is a college based out of Kolkata, West
Bengal, and is managed by The Academy of Higher Education, a
charitable trust. MSIT offers undergraduate and postgraduate
courses across streams including engineering and management.
PANDOUL FLOUR: ICRA Lowers Rating on INR4cr Term Loan to B+
-----------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Pandoul
Flour Mills Private Limited (PFMPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based 3.50 [ICRA]B+ (Stable) ISSUER NOT
cash credit COOPERATING; Rating downgraded
from [ICRA]BB- (Stable) and
moved to 'Issuer Not
Cooperating' category
Fund-based 4.00 [ICRA]B+ (Stable) ISSUER NOT
term loan COOPERATING; Rating downgraded
from [ICRA]BB- (Stable) and
moved to 'Issuer Not
Cooperating' category
Non-fund-based 0.13 [ICRA]A4 ISSUER NOT
COOPERATING; Rating moved to
'Issuer Not Cooperating'
Category
Unallocated 5.52 [ICRA]B+ (Stable)/[ICRA]A4;
limits ISSUER NOT COOPERATING;
Rating downgraded from
[ICRA]BB-(Stable)/[ICRA]A4
and moved to 'Issuer Not
Cooperating' category
Rationale
The rating is downgraded because of lack of adequate information
regarding PFMPL 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 Pandoul Flour Mills 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
hasremained non-cooperative. In the absence ofrequisite 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.
PFMPL, incorporated in 2010, is involved in flour milling process.
The company's manufacturing facility is in Darbhanga, Bihar, with
an installed domestic atta chakki capacity of 15,000 MTPA and an
installed roller flour mill capacity of 45,000 MTPA. The plant has
been operational since November 2014. The company utilised 39% of
the domestic atta chakki capacity and 78% of the roller flour mill
capacity in FY2018.
PERFECT COMMUNICATION: ICRA Keeps B+ Debt Rating in Not Cooperating
-------------------------------------------------------------------
ICRA said the rating for the bank facilities of Perfect
Communication (PC) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 6.00 [ICRA]B+ (Stable); ISSUER NOT
Cash Credit COOPERATING; Rating continues
to remain under the 'Issuer
Not Cooperating' category
Rationale
The ratings for the INR6.00 crore bank facilities of PC continue to
remain under the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]B+ (Stable); ISSUER NOT COOPERATING".
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.
The rating action has been taken in accordance with ICRA's policy
in respect of non-cooperation by a rated entity available at
www.icra.in.
Perfect Communication (PC or "the firm") is a Mumbai based
partnership concern established in 2008 jointly promoted by Mr.
Madhav Sheth and Ms. Dimple Amit Bist. The firm is an exclusive
area distributor for Samsung mobiles and accessories in
Andheri-Bandra stretch in Mumbai. The firm has its registered
office in Irla Lane in Vile Parle West, Mumbai.
POMMYS GARMENTS: Ind-Ra Affirms BB+ LongTerm Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has revised Pommys Garments
(India) Limited's Outlook to Negative from Stable while affirming
its Long-Term Issuer Rating at 'IND BB+'.
The instrument wise rating actions are:
-- INR171.54 mil. (reduced from INR248 mil.) Term loan due on
March 2027 affirmed; Outlook revised to Negative from Stable
with IND BB+/Negative rating; and
-- INR745.00 mil. (increased from INR595 mil.) Fund-based
facilities affirmed; Outlook revised to Negative from Stable
with IND BB+/Negative /IND A4+ rating.
The Negative Outlook reflects Ind-Ra's expectation of a further
stretch in Pommys' liquidity position in FY21 due to a fall in its
revenue and profitability in FY21, owing to COVID-19-led
operational disruption
KEY RATING DRIVERS
Liquidity Indicator - Poor: Pommys' maximum average utilization of
its fund-based limits was around 100.4% over the 12 months ended
July 2020, with instances of over-utilization for one-to-two days.
The company has availed the Reserve Bank of India-prescribed
moratorium on term loans and fund-based facilities over
March-August 2020 from all the banks. The cash flow from operation
remained negative at INR85.96 million in FY20 (FY19: negative
INR22.26 million) due to the working capital intensive nature of
Pommys' business. The cash flow worsened in FY20 due to an increase
in receivables. The company has availed a COVID-19 emergency loan
of INR45 million, providing liquidity support for the short term.
FY20 financials are provisional in nature.
The ratings reflect a decline in Pommys' average EBITDA margin to
5.60% in FY20 from 7.44% in FY18 (FY19: 5.56%), mainly due to the
penetration pricing for new markets and the high discount policy
for the distributorship model to increase market share. The return
on capital employed was 12.2% in FY20 (FY19: 11.7%). Ind-Ra expects
the EBITDA margins to decline 200-300bp in FY21 on account of the
lower absorption of fixed costs due to the COVID-19-led lockdown.
The company's gross interest coverage (operating EBITDA/gross
interest expense) deteriorated to 1.4x in FY20 from 2.2x in FY18
(FY19: 1.46x) and the net leverage (adjusted net debt/operating
EBITDA) to 5.6x in FY20 from 5.8x (1.5x) in FY19. The deterioration
in the interest coverage and net leverage was due to an increase in
the interest cost on higher total debt
The ratings also factor Pommys' strong revenue growth to INR3,404.6
million in FY20 from INR2,982 million in FY19 on an increase in the
sales volume. The revenue grew at a healthy CAGR of 28.3% over
FY16-FY20 due to the company's strong distribution network as well
as brand recall in the nightwear segment. The company had achieved
revenue of around INR50 million till end-July 2020. Ind-Ra also
takes into account that the products sold by Pommys are essential
daily wear products and the limited ability of buyers to postpone
such purchases. Ind-Ra expects the company's revenue to decline
35%-40% yoy during FY21 due to COVID-19-led disruptions. However,
the company expects the demand to pick-up during the festive season
in 3QFY21, aided by the pent-up demand.
The ratings supported by Pommys' wide range of offerings, its
network of 50 own stores and tie ups with over 500 retails dealers
across Tamil Nadu, Pondicherry, Andhra Pradesh .
Additionally, the promotor has more than two decades of experience
in textile garment manufacturing.
RATING SENSITIVITIES
Positive: An improvement in the overall liquidity profile and an
increase in the EBITDA margins while maintaining the revenue,
leading to the interest coverage exceeding and sustaining above
1.5x could be positive for the ratings.
Negative: No improvement in the overall liquidity profile or
substantial deterioration in the revenue and EBITDA margin over and
above Ind-Ra's expectation, or the interest coverage remaining
below 1.5x on a sustained basis could be negative for the ratings.
COMPANY PROFILE
Pommys, incorporated in 1998, is headed by A. Inico Inbaraj and K.
Raja. The company manufactures and distributes nightwear garments.
It has a cutting unit with an installed capacity of 15,000 pieces
per day.
RADHANATH BHUNIA: ICRA Moves B on INR6cr Loans to Not Cooperating
-----------------------------------------------------------------
ICRA has continued the Long term ratings for the bank facilities of
M/s. Radhanath Bhunia & Sons to the 'Issuer Not Cooperating'
category. The rating is now denoted as "[ICRA]B (Stable) ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based 6.00 [ICRA]B (Stable) ISSUER NOT
Limit–Cash COOPERATING, Rating Moved to
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.
The rating action has been taken in accordance with ICRA's policy
in respect of non-cooperation by a rated entity available at
www.icra.in.
Established in 1976 as a partnership firm, M/s. Radhanath Bhunia &
Sons (RNBS) is involved in the civil construction business, which
includes earth work like cutting, filling, making of embankment,
construction of road, minor bridges, building, railway track,
platform shed etc. The firm is being managed by Mr. Tapan Kumar
Bhunia and Mr. Sourav Bhunia. RNBS is registered as a Class-I
contractor with the India Railways, Rites Limited, PWD-Roads (West
Bengal) and the Irrigation Department (West Bengal).
RLJ WOVEN: ICRA Lowers Rating on INR11cr Cash Loan to B+
--------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of RLJ
Woven Sacks Private Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based– 4.54 [ICRA]B+(Stable) ISSUER NOT
Term Loan COOPERATING/Rating downgraded
from [ICRA]BB (Stable) ISSUER
NOT COOPERATING and Continues
to remain under 'Issuer Not
Cooperating' category
Fund Based– 11.00 [ICRA]B+(Stable) ISSUER NOT
Cash Credit COOPERATING/Rating downgraded
from [ICRA]BB (Stable) ISSUER
NOT COOPERATING and Continues
to remain under 'Issuer Not
Cooperating' category
Long Term 0.21 [ICRA]B+(Stable) ISSUER NOT
Unallocated COOPERATING/Rating downgraded
from [ICRA]BB (Stable) ISSUER
NOT COOPERATING and Continues
to remain under 'Issuer Not
Cooperating' category
Non-Fund 1.25 [ICRA]A4 ISSUER NOT
Based Bank COOPERATING and Continues to
Guarantee remain under 'Issuer Not
Cooperating' category
Rationale
The ratings for the INR17.00 crore bank facilities of RLJ Woven
Sacks Private Limited downgraded and continues to remain under
'Issuer Not Cooperating' category. The rating is now denoted as
"[ICRA]B+ (stable)/[ICRA]A4; ISSUER NOT COOPERATING".
The Long-Term rating downgrade is because of lack of adequate
information RLJ Woven Sacks Private Limited's performance and hence
the uncertainty around its credit risk. ICRA assesses whether the
information available about the entity is commensurate with its
rating and reviews the same as per its "Policy in respect of
non-cooperation by the rated entity". The lenders, investors and
other market participants are thus advised to exercise appropriate
caution while using this rating as the rating may not adequately
reflect the credit risk profile of the entity, despite the
downgrade.
As part of its process and in accordance with its rating agreement
with RLJ Woven Sacks 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 2006, by the Kolkata-based Jain family, RWSPL
manufactures bulk packing materials made of polypropylene like
woven sacks, fabrics and leno bags made of polypropylene. The
manufacturing facility is located at Sankrail in Howrah district of
West Bengal. The company started its operations in FY2009 and at
present has an annual manufacturing capacity of 5,700 metric tonne
per annum (MTPA).
RNP SCAFFOLDING: ICRA Keeps B Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA said the rating for the bank facilities of RNP Scaffolding &
Framework Private Limited continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term 30.00 [ICRA]B(Stable); ISSUER NOT
Fund based COOPERATING; Rating Continues
Limit to remain under issuer not
cooperating category
Short-term (5.00) [ICRA]A4; ISSUER NOT
Non fund COOPERATING; Rating Continues
based limit to remain under issuer not
cooperating category
Rationale
The ratings for the INR30.00 crore bank facilities of RNP
Scaffolding & Formwork Private Limited Continues to remain under
'Issuer Not Cooperating' category'. The ratings are denoted as
"[ICRA]B/ [ICRA]A4 ISSUER NOT COOPERATING". 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.
RNP Scaffolding & Framework Private Limited was incorporated in
2013 and started operations in January 2014. It manufactures
scaffolding and formworks which have applications in construction,
real estate and industrial sectors. Scaffolding is a temporary
structure used to support labour and material for construction,
repair and maintenance activity. It has scaffolding and formworks
manufacturing facility in Navi Mumbai. RNP group has other group
companies: RNP Scaffolding Private Limited which is into
manufacture and supply of scaffolding accessories and M.S Pipes and
RNP Concrete (I) Private Limited which is into manufacture and
supply of ready mix concrete.
SANGHAR EXPORTS: ICRA Cuts Ratings on INR30cr Loan to 'B+/A4'
-------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Sanghar
Exports, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term/ 30.00 [ICRA]B+(Stable)/[ICRA]A4
Short Term ISSUER NOT COOPERATING/
Fund-based Rating downgraded from
[ICRA]BB(Stable)/[ICRA]A4+
And Continues to remain
under 'Issuer Not Cooperating'
category
Short term 15.00 [ICRA]A4 ISSUER NOT
Fund-based COOPERATING/Rating downgraded
from [ICRA]A4+ and Continues
to remain under 'Issuer Not
Cooperating' category
Short term, 5.00 [ICRA]A4 ISSUER NOT
Non-Fund COOPERATING/Rating downgraded
based from [[ICRA]A4+ and Continues
to remain under 'Issuer Not
Cooperating' category
Rationale
The ratings for the INR50.00 crore bank facilities Sanghar Exports
downgraded and continues to remain under 'Issuer Not Cooperating'
category. The rating is now denoted as "[ICRA]B+ (stable)/[ICRA]A4;
ISSUER NOT COOPERATING".
The Long-Term rating downgrade is because of lack of adequate
information Sanghar Exports 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 Sanghar Exports, 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.
The Sanghar Group was established in 1920 by late Mr. Mangaldas
Venichand, as an agricultural commodities trading firm. Later in
1965, the promoters of the group undertook the export of onions
which is currently the flagship business of the group under the
name SE. SE is engaged in the export of food commodities (onions,
fresh vegetables, grains, oilseeds & pulses) to various countries
in Asia, Europe, Africa and North America and is one of the leading
exporters of onions from India. The group has since then further
diversified into supply of polymers in 1978, supply of construction
essentials in 1980 and then into property development in 1995.
SARBAMANGALA AGRO: ICRA Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
ICRA said the rating for the bank facilities of Sarbamangala Agro
Products Private Limited continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 1.90 [ICRA]D ISSUER NOT COOPERATING;
Term Loans Rating continues to remain in
the 'Issuer Not Cooperating'
category
Fund based- 3.80 [ICRA]D ISSUER NOT COOPERATING;
Cash Credit Rating continues to remain in
the 'Issuer Not Cooperating'
category
Fund based- 0.12 [ICRA]D ISSUER NOT COOPERATING;
Untied Limits Rating continues to remain in
the 'Issuer Not Cooperating'
category
Non-Fund 0.18 [ICRA]D ISSUER NOT COOPERATING;
Based Bank Rating continues to remain in
Guarantee the 'Issuer Not Cooperating'
category
ICRA has continued the long-term ratings for the bank facilities of
Sarbamangala Agro Products Pvt Ltd to the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]D/[ICRA]D ISSUER NOT
COOPERATING".
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. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
Incorporated in 2009, Sarbamangala Agro Products Private Limited is
primarily involved in milling of non basmati rice with an annual
paddy milling capacity of 18,000 MT. The manufacturing unit of the
company is located at Salar in the Murshidabad district of West
Bengal and has commenced operations from FY 12. The promoter of the
company, Mr. Sudip Roy was previously engaged in the trading of
paddy.
STEEL & METALS: ICRA Lowers Rating on INR5.50cr Cash Loan to B+
---------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Steel &
Metals, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based– 5.50 [ICRA]B+ (Stable) ISSUER NOT
Cash Credit COOPERATING; Rating downgraded
from [ICRA]BB- (Stable)
continues to remain under
'Issuer Not Cooperating'
Category
Non fund 0.90 [ICRA]A4 ISSUER NOT
based–LC/LG COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
Unallocated 4.60 [ICRA]B+ (Stable)/A4 ISSUER NOT
Limits COOPERATING; Rating downgraded
from [ICRA]BB- (Stable)/A4
continues to remain under
'Issuer Not Cooperating'
Category
Rationale
The rating downgrade is because of lack of adequate information
regarding Steel & Metals'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 a rated entity" available at www.icra.in. 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 Steel & Metals , 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 the aforesaid policy of ICRA, a rating view has been
taken on the entity based on the best available information.
Steel & Metals was set up as a partnership firm in 1979 by Mr.
Bihari Lal Ajitsaria and Mr. Arun Kumar Ajitsaria, and is engaged
in the trading of aluminium products and steel sheets. At present,
SM has two warehousing facilities in West Bengal.
UTTAM GALVA: Ind-Ra Affirms 'D' LongTerm Issuer Rating
------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Uttam Galva Steels
Ltd's (UGSL) Long-Term Issuer Rating at 'IND D (ISSUER NOT
COOPERATING)'. The issuer did not participate in the rating
exercise despite requests and follow-ups by the agency. Thus, the
ratings are on the basis of the best available information.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR28.4 mil. Long-term loans (Long-term) affirmed with IND D
(ISSUER NOT COOPERATING) rating;
-- INR4 mil. Fund-based limit (Long-term) affirmed with IND D
(ISSUER NOT COOPERATING) rating;
-- INR24.4 mil. Non-fund-based limit (Short-term) affirmed with
IND D (ISSUER NOT COOPERATING) rating;
-- INR1 mil. Short-term debt (Short-term) affirmed with IND D
(ISSUER NOT COOPERATING) rating;
-- INR2 mil. Standby limits (Short-term) affirmed with IND D
(ISSUER NOT COOPERATING) rating; and
-- INR2 mil. Proposed non-fund-based limit (Short-term)* assigned
with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
*The provisional rating has been converted to final as Ind-Ra
believes that the terms of this provisional rating are gradual or
uniform across the banking lines and are not a rating driver.
KEY RATING DRIVERS
The affirmation reflects UGSL's ongoing delays in debt servicing
that are likely to persist till the company's lenders finalize a
resolution strategy for the recovery of pending dues.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months would lead to a positive rating action.
COMPANY PROFILE
Incorporated in 1985, UGSL manufactures cold-rolled sheets,
cold-rolled close annealed sheets, galvanized plain and corrugated
sheets, and color coated lines.
VICKY FASHION: ICRA Keeps B Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA said the rating for the bank facilities of Vicky Fashion
Limited (VFL) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based– 5.00 [ICRA]B(Stable); ISSUER NOT
Cash Credit COOPERATING; Rating Continues
to remain under issuer not
cooperating category
Fund-based– 2.00 [ICRA]A4; ISSUER NOT
Packing Credit COOPERATING; Rating Continues
to remain under issuer not
cooperating category
Rationale
The ratings for the INR7.00 crore bank facilities of VFL continues
to remain under 'Issuer Not Cooperating' category'. The ratings are
denoted as "[ICRA]B(Stable)/[ICRA]A4 ISSUER NOT COOPERATING".
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 1996, Vicky Fashion Limited (VFL) is predominantly
into trading of grey yarn and fabrics. In the year 2006, the
company diversified into manufacturing of garments. The company has
an in-house manufacturing unit at Mahape in Mumbai with a
processing capacity of ~50,000 garments a month. Apart from
domestic sales, the company also exports garments to various
destinations like Italy, United States of America (USA) and
France.
VSP ENTERPRISES: ICRA Lowers Rating on INR10cr Loan to B+
---------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of VSP
Enterprises Private Limited (VEPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based 10.00 [ICRA]B+ (Stable) ISSUER NOT
Limit COOPERATING; Rating downgraded
from [ICRA]BB+ (Stable) and
continues to remain in the
'Issuer Not Cooperating'
Category
Non-fund 10.00 [ICRA]A4 ISSUER NOT
based Limits COOPERATING; Rating downgraded
from [ICRA]A4+ and continues
to remain in the 'Issuer Not
Cooperating' category
Rationale
The rating downgrade is because of lack of adequate information
regarding VEPL 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 a rated entity"
available at www.icra.in. 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 VSP Enterprises 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 the aforesaid policy of ICRA, a rating view has
been taken on the entity based on the best available information.
VEPL, promoted by Mr Palaram commenced operations in 2004 as a
company undertaking steel tower fabrication for the telecom sector.
The company's client list includes Bharti Infratel Limited, Indus
Towers Ltd, L&T, Viom Networks Ltd etc. However, subsequent to the
slowdown in the telecom tower segment in FY2011, the company also
diversified into setting up transmission towers for the power
sector. The company's clientele for this segment includes Power
Grid Corporation of India Ltd, Rajasthan Rajya Vidyut Prasaran
Nigam Ltd, Uttar Pradesh Power Transmission Corporation Ltd etc.
WINMAX CERAMIC: ICRA Withdraws B Rating on INR1.53cr Term Loan
--------------------------------------------------------------
ICRA has withdrawn the ratings on certain bank facilities of Winmax
Ceramic Private Limited (WCPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based 1.53 [ICRA]B (Stable); Withdrawn
Term Loan
Fund-based
Cash Credit 6.00 [ICRA]B (Stable); Withdrawn
Non-fund
Based Bank
Guarantee 1.50 [ICRA]A4; Withdrawn
Unallocated 3.47 [ICRA]B (Stable)/[ICRA]A4;
Limits Withdrawn
Rationale
The long-term and short-term ratings assigned to Winmax Ceramic
Private Limited (WCPL/the company) have been withdrawn at the
request of the company, based on the no due certificate provided by
its banker. ICRA is withdrawing the rating and that it does not
have information to suggest that the credit risk has changed since
the time the rating was last reviewed. ICRA has withdrawn the
Stable outlook on the long-term rating.
Key rating drivers and their description
Key rating drivers have not been captured as the ratings are being
withdrawn.
Liquidity position -- Not captured as the ratings are being
withdrawn.
Rating sensitivities -- Rating sensitivities have not been captured
as the ratings are being withdrawn.
Incorporated in June 2013, Winmax Ceramic Private Limited (WCPL)
commenced the manufacturing of ceramic wall tiles on July 2013. In
June 2015, the company changed its product profile to manufacture
vitrified parking tiles owing to intense competition in the ceramic
wall tiles segment and better profitability in the vitrified
parking tiles segment. The manufacturing facility is located at
Morbi, Gujarat, with an installed production capacity of ~8000
boxes of vitrified parking tiles per day of the 12"X12" and 16"X16"
dimension.
===============
M A L A Y S I A
===============
AIRASIA X: Seeks Debt Help With Flights Unlikely Until 2021
-----------------------------------------------------------
Bloomberg News reports that AirAsia Group Bhd.'s long-haul arm said
it needs to reach agreements with major creditors to restructure
outstanding debt as it faces "severe liquidity constraints" that
threaten its ability to resume flying and continue as a going
concern.
Bloomberg relates that the warning came in an exchange filing Aug.
26, in which AirAsia X Bhd. also reported a net loss for the three
months ended June 30 of MYR305.2 million (US$73 million), worse
than a MYR207.1 million deficit a year ago. Sales tumbled 91% to
MYR91.4 million.
"In the short term, the company will need to seek agreement with
major creditors to restructure outstanding liabilities, which have
accrued during the period since the start of the Covid-19 pandemic,
in order to continue as a going concern," AirAsia X said in the
filing, Bloomberg relays.
Securing support from aircraft lessors, maintenance service
providers and financial institutions is necessary for the restart
of scheduled flights on a staggered basis early next year and a
return to profitability, it said. The Malaysia-based budget
carrier hasn't been able to operate any of its usual international
passenger services bar a few cargo and charter flights to help
repatriate people stranded by the coronavirus, according to
Bloomberg.
Bloomberg says parent AirAsia has been considering strategic
options, including bringing in investors to shore up the unit's
finances, integrating it with the broader group or even shuttering
it, people familiar with discussions have said. Auditor Ernst &
Young said last month there may be "significant doubt" over AirAsia
X's ability to continue as a going concern based on its 2019
financial report.
AirAsia X's operations have been suspended since March 28 as tight
border controls, quarantine measures and a reluctance to travel
have devastated global aviation, particularly for carriers that are
dependent on international routes, Bloomberg notes. The
International Air Transport Association doesn't expect a full
recovery before 2024.
Bloomberg relates that AirAsia X has said that it's actively
engaging with business partners and creditors to reschedule
payments and renegotiate contracts to ensure enough cash for
operations when demand recovers. It plans to apply for a state
guaranteed loan of up to MYR500 million and is aiming to operate a
leaner fleet size. That will involve returning excess aircraft to
lessors.
Bloomberg says the long-haul airline is the biggest customer of
Airbus SE's A330neos. It expects to remain in "hibernation mode"
until travel restrictions ease, although maintains demand should
pick up toward the end of 2020. The company has deferred delivery
of some A330neos. It has 78 of the aircraft on order, according to
Airbus's website.
Some countries are at least moving to open their borders.
Singapore and Malaysia, for example, have already eased
restrictions for essential and business travel.
Prior to the outbreak, AirAsia X flew to places such as Australia,
China, India and Saudi Arabia. It's also the only Malaysian
airline that served the U.S. -- from Kuala Lumpur to Hawaii via
Osaka. In November, the Federal Aviation Administration downgraded
Malaysia to so-called Category 2, barring its carriers from adding
any more flights to North America.
AirAsia X was already struggling pre-pandemic, posting losses for
six out of the seven quarters through December 2019, Bloomberg
notes.
In the April-June period during the thick of the first virus wave
in Asia, it carried only 2,291 passengers versus 1.5 million the
same period of 2019. It also only operated 16 scheduled flights,
as compared to 4,824 in the same quarter of last year.
Parent AirAsia on Aug. 25 reported similarly dismal figures -- a
net second-quarter loss of MYR992.9 million that was its worst
ever, Bloomberg discloses.
AirAsia Berhad provides low-cost air carrier service. The company
provides services on short-haul, point-to-point domestic and
international routes. AirAsia, headquartered in Malaysia, operates
from hubs in Malaysia, Thailand, Indonesia, Philippines and India.
=====================
P H I L I P P I N E S
=====================
ABS-CBN CORP: Incurs PHP3-Billion Loss After Franchise Rejection
----------------------------------------------------------------
BusinessWorld Online reports that ABS-CBN CORP. on Aug. 20 reported
an attributable net loss of PHP3.16 billion for the second quarter
of the year, swinging from a profit of PHP695.80 million in the
same period last year, after Philippine lawmakers rejected its bid
to secure a 25-year broadcast franchise.
"Advertising revenues suffered a sharp decline in the second
quarter of 2020 following the issuance on May 5, 2020 by the
National Telecommunications Commission (NTC) of a Cease and Desist
Order (CDO) to the company, prohibiting its continuing broadcast
operations effective immediately," the network said in its
quarterly report, BusinessWorld relays.
According to BusinessWorld, ABS-CBN did not indicate the details of
its advertising revenues for the second quarter, but it reported a
53.9% decline for the first half of the year to PHP5.20 billion
from PHP11.29 billion in the same period last year.
BusinessWorld relates that the network's advertising revenues for
the first three months went down 20.8% to PHP4.28 billion from
PHP5.40 billion a year ago. Its first-quarter consumer sales also
dropped 12.1% to PHP4.38 billion from the previous year's PHP4.95
billion. For the first half, the network reported a 14.2% decline
in consumer sales to PHP8.12 billion from PHP9.52 billion.
ABS-CBN's total revenues for the second quarter dropped 55.17% to
PHP4.68 billion from PHP10.44 billion posted, BusinessWorld says.
The network further trimmed its production costs for the quarter to
PHP2.13 billion from the previous year's PHP3.43 billion.
According to BusinessWorld, the network said the NTC's issuance of
a cease-and-desist order against ABS-CBN's broadcast operations in
May and a separate order in June against its digital TV
transmission in Metro Manila added to the impact of the coronavirus
pandemic on the company's financial performance during the quarter
because such events "drove down both the advertising and consumer
revenues of the company."
ABS-CBN announced in July that it would implement a retrenchment
program effective at the end of business day on Aug. 31,
BusinessWorld recalls.
The company's theme park business, KidZania Manila, will
permanently close starting Aug. 31.
ABS-CBN said it plans to continue to operate in other businesses
that do not require a broadcast franchise, namely: international
licensing and distribution, digital and cable businesses, and
syndication of content through streaming services, BusinessWorld
relays.
BusinessWorld adds the company also vowed to honor all its existing
obligations for goods delivered and services rendered by
third-party suppliers. It said it is willing to negotiate "new
terms" for such obligations when needed.
ABS-CBN Corporation operates a network of TV & radio stations in
the Philippines. The Company produces entertainment and news
programs for basic and cable channels. The Company has interests in
film and music production and distribution as well as online and
mobile services and magazine publishing. Content is broadcasted
through TFC Channel via cable, satellite and internet.
=================
S I N G A P O R E
=================
KRISENERGY LTD: Board Passes Up Potential Lifeline
--------------------------------------------------
Uma Devi at The Business Times reports that even as it was
struggling through a restructuring in 2016, upstream oil and gas
company KrisEnergy had been in discussions at the time about an
offer for some of its assets. But it appears that the board was
unable to reach agreeable terms with the offeror.
According to documents seen by The Business Times (BT), a privately
held company called AlHassan International Holdings had in 2016
proposed to pay KrisEnergy US$230 million for its stakes in several
oil fields. AlHassan also wanted to buy Keppel Corporation's 40 per
cent stake in KrisEnergy.
The documents suggest that AlHassan had been in negotiations with
Jeffrey MacDonald, KrisEnergy's interim chief executive officer at
the time, and Keppel Corp's chief financial officer Chan Hon Chew,
BT relays.
After some negotiations, AlHassan eventually offered US$165 million
for stakes in three blocks and a production barge. The offer was
never announced as it was still subject to the approval of
KrisEnergy's directors as well as regulatory approvals.
A source told BT that sale and purchase agreements were drafted but
not signed, as the various parties could not agree on the terms.
When approached by BT for comment, KrisEnergy referred the matter
to Keppel. A Keppel spokesperson merely said: "KrisEnergy has just
published its final restructuring proposal. Keppel Corporation is
currently evaluating the restructuring proposal and will make the
appropriate announcements later."
AlHassan did not respond to queries from BT.
BT relates that the source said accepting the offer could have
prevented KrisEnergy from ending up in its current position.
KrisEnergy is trying to restructure debt of US$476.8 million. A
debt moratorium it received in September last year has already been
extended three times, according to BT.
Under the proposed restructuring plan, KrisEnergy shareholders will
be diluted to 10 per cent of post-restructuring equity, BT says.
All unsecured debt will be converted into 46.2 per cent of
post-restructuring equity. Secured creditors will see their debt
extended, with some also having a portion of their debt converted
to equity.
About KrisEnergy Limited
KrisEnergy Limited -- https://krisenergy.com/ -- is a
Singapore-based investment holding company. The Company is an
independent upstream oil and gas company with a portfolio of
exploration, appraisal, development and production assets focused
on the geological basins in Asia. The Company operates through
exploration and production of oil and gas in Asia segment. The
Company holds interests in approximately 20 licenses in Bangladesh,
Cambodia, Indonesia, Thailand and Vietnam covering a gross acreage
of approximately 60,750 square kilometers.
In August 2019, the firm sought court protection from creditors'
legal action while it restructured its debts, according to The
Business Times. Keppel Corporation, a creditor and shareholder of
KrisEnergy, then publicly came out to support the application and
KrisEnergy's management in formulating a restructuring plan.
Trading in its shares has been suspended pending the restructuring,
BT noted.
Total debts stood at around US$558.8 million as at June 30, 2019,
according to KrisEnergy's presentation slides for its Sept. 10,
2019, informal investor meeting for noteholders and shareholders.
*********
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
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