/raid1/www/Hosts/bankrupt/TCRAP_Public/201022.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, October 22, 2020, Vol. 23, No. 212
Headlines
A U S T R A L I A
AGRITRADE PACIFIC: Second Creditors' Meeting Set for Oct. 29
BLUESTAR COLD: First Creditors' Meeting Set for Oct. 30
BOUMBIS ORCHARDS: First Creditors' Meeting Set for Oct. 30
EDEN MARINE: Second Creditors' Meeting Set for Oct. 29
INFRABUILD AUSTRALIA: Fitch Affirms BB-sf LT IDR, Outlook Neg.
NATIONAL GROUP: Moody's Withdraws B2 CFR for Business Reasons
C H I N A
AMERICAN EDUCATION: Has $531K Net Loss for Quarter Ended June 30
YINGDE GASES: Fitch Affirms LT IDR at BB, Outlook Stable
ZHONGLIANG HOLDINGS: Fitch Assigns B+ Rating on New USD Bonds
H O N G K O N G
CATHAY PACIFIC: To Cut Over 5,000 Jobs; Close Dragon Brand
CLUB 71: Bar to Close at the End of October
CONCORD NEW: Fitch Assigns Final BB- Rating to $90MM Bonds
I N D I A
134 INFRA: Ind-Ra Affirms 'BB+' LT Issuer Rating, Outlook Negative
ALAPATT JEWELS: ICRA Keeps B Debt Rating in Not Cooperating
AMBIKA REALCON: Ind-Ra Moves BB Issuer Rating to Non-Cooperating
APOLLO INT'L: ICRA Cuts Rating on INR111.84cr Loan to B+/A4
ASHISH INFRACON: Ind-Ra Moves BB+ Issuer Rating to Non-Cooperating
BALAJI CONSTRUCTION: ICRA Moves B+ Ratings to Not Cooperating
BETAIN CAREER: Insolvency Resolution Process Case Summary
BHAWAR LIFESTYLE: ICRA Lowers Rating on INR9cr LT Loan to B+
BIOPAC INDIA: Insolvency Resolution Process Case Summary
DRUPA SUPPLIERS: Insolvency Resolution Process Case Summary
ESSAR POWER: Insolvency Resolution Process Case Summary
GOKUL COTTON: ICRA Moves B+ Debt Ratings to Not Cooperating
KVR PROJECTS: ICRA Cuts Rating on INR5.0cr LT Loan to B+
M R STEEL: ICRA Lowers Rating on INR8cr Term Loan to B+/A4
MANICKBAG AUTOMOBILES: ICRA Cuts Rating on INR10cr LT Loan to B+
MANIKANTA COTTON: ICRA Moves B+ Debt Ratings to Not Cooperating
MYTRAH VAYU: ICRA Reaffirms B- Rating on INR915.90cr Loan
RAGHU RAMA: ICRA Reaffirms B+ Rating on INR16cr Loans
REALTIME TECHSOLUTIONS: ICRA Cuts Rating on INR25cr Loans to D
S.V.S CLASSIC: ICRA Lowers Rating on INR9cr LT Loan to B+
SAANVI CLOTHING: ICRA Moves B Debt Ratings to Not Cooperating
SAHARA CREDIT: Asked Either to Repay or Get Ready for Liquidation
SARATHA ELECTRO: ICRA Keeps B Debt Ratings in Not Cooperating
SBC MINERALS: ICRA Lowers Rating on INR25cr LT Loan to B+
SHREERAM AND SONS: ICRA Cuts Rating on INR3cr LT Loan to B+
SHYAM DESIGNS: ICRA Lowers Rating on INR10cr LT Loan to B+
SUBHLAXMI DYEING: Insolvency Resolution Process Case Summary
SUDARSHAN INFRA: ICRA Moves B+ Debt Ratings to Not Cooperating
SWARAJ INDIA: Ind-Ra Affirms then Withdraws 'BB+' LT Issuer Rating
THREE C SHELTERS: Insolvency Resolution Process Case Summary
TIRUPATHI YARNTEX: ICRA Keeps B- Debt Ratings in Not Cooperating
TOPWORTH TOLLWAYS: Insolvency Resolution Process Case Summary
TRIDENT AUTO: Ind-Ra Moves BB+ LT Issuer Rating to Non-Cooperating
VEDANTA RESOURCES: S&P Affirms 'B-' ICR, Off CreditWatch Developing
VIJETA PROJECTS: ICRA Lowers Rating on INR80cr Loan to D
VIVEK STEELCO: Insolvency Resolution Process Case Summary
J A P A N
J. FRONT RETAILING: Egan-Jones Lowers Sr. Unsecured Ratings to BB-
M A C A U
NEW COTAI: Court Enters Plan Confirmation Order
NEW COTAI: Noteholders Get 97% of Equity in Plan
N E W Z E A L A N D
FLIGHT CENTRE NZ: Cuts Another 160 Jobs, To Close 23 More Stores
SNAKK MEDIA: Removed from Liquidation by Reverse Takeover Expert
S I N G A P O R E
NEW SILKROUTES: Taps Darrell Lim as Acting Non-Executive Chairman
T H A I L A N D
[*] THAILAND: Panel to Monitor Debt Restructuring of SMEs
- - - - -
=================
A U S T R A L I A
=================
AGRITRADE PACIFIC: Second Creditors' Meeting Set for Oct. 29
------------------------------------------------------------
A second meeting of creditors in the proceedings of Agritrade
Pacific Pty Ltd has been set for Oct. 29, 2020, at 11:00 a.m. at
Cor Cordis, One Wharf Lane, Level 20, 171 Sussex 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 Oct. 28, 2020, at 4:00 p.m.
Ahmed Sowaid & Jason Tang of Cor Cordis were appointed as
administrators of Agritrade Pacific on Sept. 23, 2020.
BLUESTAR COLD: First Creditors' Meeting Set for Oct. 30
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Bluestar
Cold Storage and Logistics Pty Ltd will be held on Oct. 30, 2020,
at 10:30 a.m. via video conference.
Mathew Gollant of CJG Advisory was appointed as administrator of
Bluestar Cold on Oct. 20, 2020.
BOUMBIS ORCHARDS: First Creditors' Meeting Set for Oct. 30
----------------------------------------------------------
A first meeting of the creditors in the proceedings of Boumbis
Orchards Pty Ltd will be held on Oct. 30, 2020, at 11:00 a.m. via
teleconferencing facility.
Domenico Alessandro Calabretta of Mackay Goodwin was appointed as
administrator of Boumbis Orchards on Oct. 19, 2020.
EDEN MARINE: Second Creditors' Meeting Set for Oct. 29
------------------------------------------------------
A second meeting of creditors in the proceedings of Eden Marine
Centre Limited has been set for Oct. 29, 2020, at 11:00 a.m. via
electronics facilities only.
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 Oct. 28, 2020, at 5:00 p.m.
Marcus Williams Ayres and Stephen James Parbery of Duff & Phelps
were appointed as administrators of Eden Marine on Sept. 28, 2020.
INFRABUILD AUSTRALIA: Fitch Affirms BB-sf LT IDR, Outlook Neg.
--------------------------------------------------------------
Fitch Ratings has revised the Outlook on InfraBuild Australia Pty
Ltd.'s Long-Term Issuer Default Rating (IDR) to Negative, from
Stable, and has affirmed the IDR at 'BB-'. The agency has also
affirmed InfraBuild's USD325 million senior secured notes at 'BB'.
The Negative Outlook reflects Fitch's expectation that key steel
end markets, particularly the Australian construction market, will
weaken in 2H20 and 2021. It also reflects the uncertainty
associated with the coronavirus pandemic's longer-term impact on
the economy and the weakening of InfraBuild's credit metrics,
highlighted by weakness in interest cover, driven by slowdown in
construction and recycling markets. InfraBuild announced a number
of strategic decisions in response to the pandemic, including a
reduced headcount, site closures and growth capex deferral. Fitch
regards these decisions as prudent, but the large drop in earnings
due to the pandemic and uncertain timing of a recovery in domestic
steel demand has led us to forecast elevated total debt/EBITDA for
the next 12-18 months.
Fitch rates the notes one-notch higher than the company's IDR on
superior recovery prospects. The notes are secured by first-lien
property and other assets, and second-lien account receivables and
inventories. Its recovery analysis assumes that the company's
asset-based lending facility will be fully drawn and it will have
priority on the proceeds from the collateral.
Fitch treats InfraBuild's lease costs as operating expenses, in
line with the change of its treatment of leases; consequently,
Fitch has changed its rating sensitivities to unadjusted metrics,
from lease-adjusted. In addition, Fitch has incorporated an
interest coverage ratio into its sensitivities to capture the
company's weakness in its operational leverage.
KEY RATING DRIVERS
High Construction-Market Exposure: Fitch expects weakness in steel
sales volume and prices in the second half of the financial year
ending June 2021 (FY21) due to InfraBuild's high exposure to the
Australian construction market, which is experiencing low activity
due to over-supplied residential apartments and delays in
government-funded infrastructure projects. Fitch also expects high
unemployment and lower migration levels to delay a recovery in
residential construction activity until late 2021. InfraBuild's
EBITDA fell in FY20 due to pandemic-related weak steel pricing and
under performance in its recycling division as experienced in line
with the industry sector.
This is likely to see leverage, measured by gross debt/EBITDA, rise
to around 5x in FY21 and FY22, above the level at which Fitch would
consider taking negative rating action, before moderating towards
historical norms in 2022 as conditions normalise.
Rent Expense Weighs on Coverage: InfraBuild's high rent expense,
partly stemming from its large distribution network, weighs on its
coverage metrics and limits its cash flow flexibility, especially
during market downturns. Fitch forecasts the company's coverage,
measured as EBITDA/interest paid, to fall to 1.6x in FY21, from
2.4x in FY20. Fitch believes the network supports InfraBuild's
market share, but its fixed charges more than offset this benefit.
However, Fitch expects InfraBuild to maintain a sufficient
liquidity buffer to cover its fixed charges over the next 12-18
months.
Market-Leading Position: InfraBuild is Australia's sole EAF steel
long product manufacturer and operates the country's second-largest
ferrous and non-ferrous recycling business. Its strong market
position has seen it maintain an around 63% volume share of
domestic steel long products over the last decade, despite stiff
competition from imports. This is helped by its flexible operation,
reliable supply and broad product offering compared with imports.
Furthermore, InfraBuild gained market share from the
pandemic-related supply-chain disruption, in part, due to customer
efforts to secure steady steel supply.
Weak Cost Position, Small Scale: InfraBuild has a small-scale
operation in terms of EAF production volume, at 1.4 million tonnes
a year, and a weak cost position compared with peers in export
markets. Profitability could come under pressure if low-cost
producers, especially Chinese steel mills, increase export volume
into Australia, although Fitch does not expect this to occur in the
short-to medium-term due to China's effort to reduce its steel-mill
capacity and Australia's geographic isolation that results in
longer supply lead time.
In the domestic market, Fitch believes InfraBuild's cost position
is competitive against imports after adjusting for freight, import
tariffs and port-handling charges, as evidenced by the company's
resilient domestic volume share. However, there is a risk of rising
Chinese imports affecting InfraBuild's profitability, especially
during times of weak Chinese steel consumption or if iron ore and
coking coal prices become competitive against scrap.
DERIVATION SUMMARY
Fitch assesses InfraBuild's rating as in line with other
Fitch-rated 'BB' category EAF steel producers due to the company's
integrated business model, flexible operating profile and leading
market position in Australia. The ratings are constrained by
InfraBuild's weak cost position, scale and high leverage.
The ratings of InfraBuild are comparable with those of US-based
Commercial Metals Company (CMC; BB+/Stable). CMC has better
geographic and operational diversification due to its operations in
the US and Poland, as well as its higher number of operating mills.
However, InfraBuild's strong market position and long-term customer
relationships offset its relatively weaker diversification.
Both companies have vertically integrated business models, receive
a premium over the import parity price and have similar absolute
level site-operating costs. However, Fitch believes CMC's mini mill
in the US benefits from strict tariff barriers and access to cheap
electricity and scrap, which results in better margins and a lower
threat from Asian imports. CMC's leverage metric, as measured by
total debt/operating EBITDA, of around 3x is also around one turn
lower than that of InfraBuild. These factors underscore the
two-notch rating differential between the two entities.
Brazilian-based Gerdau S.A. (BBB-/Stable) has better
diversification, business scale and profit margin as well as lower
leverage than InfraBuild, but InfraBuild's dominant domestic market
position accounts for the three-notch rating differential between
the two entities.
KEY ASSUMPTIONS
- Weak steel volume and prices due to volume contraction in
Australia's construction market in 2020 and 2021.
- EBITDAR margin improving to around 6.0% due to cost cutting
initiatives, including savings from a continuous improvement
programme and cost synergies from planned acquisitions (FY20:
5.4%).
- Capex of around AUD35million in FY21 and FY22, then remaining
at around 2% of revenue.
- No dividend.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Total debt/EBITDA below 4.5x for a sustained period (FY20:
4.0x)
- EBITDA/interest paid above 2.0x for a sustained period (FY20:
2.4x)
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Fitch may downgrade the ratings if the above positive
sensitivities are not met
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: InfraBuild's next significant debt maturity is
in October 2022, consisting of a AUD250 million asset-based lending
facility. Fitch expects the company to have adequate liquidity from
its undrawn asset-based facility and cash on the balance sheet of
AUD365 million to meet short-term requirements.
Fitch expects InfraBuild to rely on refinancing to address its
long-term debt maturities. Fitch believes it should be able to
manage its refinancing needs due to its sizeable unencumbered
property assets.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
NATIONAL GROUP: Moody's Withdraws B2 CFR for Business Reasons
-------------------------------------------------------------
Moody's Investors Service withdrawn National Group Corporation Pty
Ltd's B2 corporate family rating and stable outlook.
RATINGS RATIONALE
Moody's has decided to withdraw the rating for its own business
reasons.
Based in Queensland, National Group Corporation Pty Ltd is a
private company focused on providing equipment rental and services
to the mining industry in Australia.
National is focused on providing large and extra-large, including
ultra-class, heavy earthmoving mining equipment rentals, on both a
dry and wet basis to the mining industry in Australia.
=========
C H I N A
=========
AMERICAN EDUCATION: Has $531K Net Loss for Quarter Ended June 30
----------------------------------------------------------------
American Education Center, Inc., filed its quarterly report on Form
10-Q, disclosing a net loss (attributable to the Company) of
$531,475 on $161,984 of revenues for the three months ended June
30, 2020, compared to a net loss (attributable to the Company) of
$165,951 on $1,169,044 of revenues for the same period in 2019.
At June 30, 2020, the Company had total assets of $6,211,562, total
liabilities of $6,006,904, and $204,658 in total stockholders'
equity.
The Company said, "Our current operating results indicate that
substantial doubt exists related to the Company's ability to
continue as a going concern. We believe that the new education
platforms acquired may mitigate the substantial doubt raised by our
current operating results and with additional funding from a
shareholder of the Company will be sufficient to meet its
anticipated needs for working capital and satisfying our estimated
liquidity needs 12 months from the date of the financial
statements. However, we cannot predict, with certainty, the outcome
of our actions to generate liquidity, including the availability of
additional debt financing, or whether such actions would generate
the expected liquidity as currently planned."
A copy of the Form 10-Q is available at:
https://is.gd/sCoS2S
American Education Center, Inc., through its subsidiaries, provides
education consulting services in the People's Republic of China. It
operated in two segments, AEC New York and AEC Southern UK. The
Company was founded in 1999 and is headquartered in New York, New
York.
YINGDE GASES: Fitch Affirms LT IDR at BB, Outlook Stable
--------------------------------------------------------
Fitch Ratings has affirmed China-based Yingde Gases Group Company
Limited's Long-Term Issuer Default Rating (IDR) at 'BB'. The
Outlook is Stable. The agency has affirmed the senior unsecured
rating of Yingde at 'BB'.
The affirmation reflects Yingde's strong financial profile with
steady revenue growth, healthy EBITDA and low leverage. Revenue
increased by 20% yoy, on average, from 2016-2019 and the EBITDA
margin remained at 31%-35%. Funds from operations (FFO) net
leverage decreased to 1.8x in 2019, from 4.1x in 2016, and Fitch
forecasts it will remain near this level in 2020 and 2021.
KEY RATING DRIVERS
Strong Financial Performance: Yingde's revenue increased by 14% in
2019 and 9% yoy in 1H20, resulting mainly from the full-year impact
of the acquisition of a fertiliser business and the ramp up of the
new Jingmen project from the end of 2019.
Fitch expects Yingde's revenue to increase by 12% in 2020 due to
the Jingmen project ramp-up. The EBITDA margin was 32% in 2019 and
30% in 1H20, and Fitch expects the EBITDA margin to remain between
29%-31% in 2020-2023. Yingde generated positive free cash flow
(FCF) in 2019 - a trend since 2016 - and Fitch forecasts this will
continue in 2020-2023.
Improving Business Diversification: Yingde continues to diversify
in terms of end-customer and product type. The proportion of
industrial gas revenue from merchant sales has increased, rising to
20% in 2019 from 12% in 2016. Merchant revenue fell by 19% yoy in
1H20 due to lower volumes and average selling prices (ASP) because
of the coronavirus outbreak. Fitch expects merchant revenue to
recover in 2H20 as market conditions improve.
Urea and other product revenue increased to 14% of total revenue in
2019, from 5% in 2016, due to the acquisition of the fertiliser
business. This ratio further increased to 18% in 1H20 as the
Jingmen project started ramping up at the end of 2019. The Jingmen
project produces mainly methanol, ammonia and hydrogen.
Low Leverage Sustainable: Yingde's FFO net leverage dropped to 1.8x
in 2019, from 4.1x in 2016, due to the continuous facility ramp up
and increasing revenue from the low capex merchant business. Fitch
expects FFO net leverage to remain similar to 2019 level in 2020
and 2021 due to steady revenue growth, prudent capex and stable
dividend payout.
Coronavirus-Related Financial Impact Limited: The merchant business
was affected temporarily by the outbreak in 1H20, resulting in a
lower ASP from declining market prices and lower volumes. Merchant
revenue declined by 19% yoy in 1H20. However, onsite business
revenue rose by 9% yoy due to long-term contracts that ensured the
purchase of minimum volumes. Fitch does not expect the
coronavirus-related impact to extend into 2H20 because the
underlying end-customer industries, such as the steel industry,
have recovered quickly after the outbreak.
DERIVATION SUMMARY
There is no direct comparable industry peer for Yingde. Fitch
instead compares Yingde with other 'BB' category peers in China,
such as China Hongqiao Group Limited (BB-/Stable) and Fufeng Group
Limited (BB+/Stable).
Yingde's and Fufeng's ratings are similar in a sense that they are
both constrained by their lack of product diversification and
supported by their leading market positions. However, Fufeng has
lower end-customer concentration than that of Yingde. Yingde has
around 50% revenue from steel producers, whereas Fufeng's end
customers are much more diversified and the five largest customers
together were less than 30% of total sales in 2019. Yingde's EBITDA
scale is larger than that of Fufeng, which has extremely low
leverage at less than 1x and high FFO fixed-charge coverage of over
10x compared with Yingde's leverage at just below 2x and coverage
at 5x.
Hongqiao's business scale is substantially larger than that of
Yingde, although Yingde has slightly lower leverage and higher
coverage ratios. However, Hongqiao's rating is highly constrained
by the regulatory implications of potential imposition of power
surcharges, which can substantially alter its financial profile.
Hence, Fitch believes rating Yingde one notch higher than Hongqiao
is justified.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Revenue to reach over CNY16bn in 2020 then on average
mid-single digit revenue growth in 2021-2023;
- Steady EBITDA margin ranging from 29% to 31% from 2020-2023
(2019: 31.7%);
- Average annual capex of just under CNY3bn from 2020-2023 (2019:
CNY2.3bn);
- Dividend payout ratio of 25% from 2020-2023 (guidance given by
company).
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Improvement in business profile in terms of business scale and
diversification without deterioration in financial metrics;
- FFO net leverage sustained below 1.5x.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Significant decline in revenue and/or operating EBITDA margin;
- FFO net leverage sustained above 2.0x;
- Negative FCF on a sustained basis.
LIQUIDITY AND DEBT STRUCTURE
Sufficient Liquidity: Yingde had CNY3.9 billion of short-term debt
as of June 30, 2020, against CNY3.2 billion of readily available
cash and CNY3.9 billion of uncommitted credit facilities. The
credit facilities are uncommitted, as committed facilities are
uncommon in the Chinese banking environment.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
ZHONGLIANG HOLDINGS: Fitch Assigns B+ Rating on New USD Bonds
-------------------------------------------------------------
Fitch Ratings has assigned China-based homebuilder Zhongliang
Holdings Group Company Limited's (B+/Stable) proposed US dollar
bonds a rating of 'B+', with a Recovery Rating of 'RR4'. The
proposed notes are rated at the same level as Zhongliang's senior
unsecured rating because they will constitute its direct and senior
unsecured obligations.
Zhongliang's ratings are underpinned by its contracted sales scale,
which is comparable with 'BB' category homebuilders. The group's
projects spread across five core economic regions in China,
mitigating regional economic and policy risks. Zhongliang adopts an
ultra-fast-churn model and aims to begin sales soon after acquiring
land, leading to a low net inventory base. This, together with
guarantees to joint ventures (JV) and associates, could increase
the volatility of the company's financial profile and is a
constraint on Zhongliang's ratings.
KEY RATING DRIVERS
Geographically Diversified Homebuilder: Zhongliang's property
projects were located in more than 100 cities across five core
economic regions in China as of end-1H20. The majority were in
third- and fourth-tier cities, which have weaker demand
fundamentals than higher-tier cities. Zhongliang is responsive to
changing market conditions and has increased its presence in
second-tier cities in the past 18 months; 64% of the land it
acquired in 1H20 was in tier-two cities. The improved
diversification mitigates regional economic and policy shocks.
Strong Growth: Fitch expects attributable contracted sales to
continue to rise, after increasing to CNY99 billion in 2019 from
CNY16 billion in 2016, to help the company become one of China's
top-20 property developers. Zhongliang's standardised operational
procedures, which cover its entire property-development value chain
- including land acquisition, marketing, design and product lines -
have aided its rapid expansion. Its improving land bank quality is
evident from its average selling price of CNY12,500/square metre
(sq m) in 1H20, up from CNY10,300/sqm in 2019.
Low Margin to Edge Higher: Fitch expects its EBITDA margin to edge
up to around 20%-22% in the coming four years, from 18% as of
end-2019. This is aided by improving selling, general and
administrative expenses by streamlining internal structures and
economies of scale. Its earned but not booked development-property
revenue carries 22%-25% gross profit margin.
Low Net Inventory: Zhongliang's ultra-fast-churn model allows for
sound capital utilisation. It enters the pre-sale phase quickly
after land is acquired. Projects are small and aimed at the mass
market, enabling it to de-stock and achieve positive cash flow
generation within a short period. Internally generated cash flow
supports capital needs for land acquisition and development,
reducing the need for large debt funding. Zhongliang's
higher-than-peer contracted liabilities as a proportion of
inventory results in a low net inventory base against its peers.
Still, Zhongliang's gross inventory is in line with higher-rated
peers.
Leverage May Increase: Fitch believes continued growth in scale
amid a moderating property market may increase pressure to
replenish land, leading to volatile land acquisition expenditure.
This may result in swings in leverage, especially if contracted
sales slow significantly. Zhongliang's leverage - measured by net
debt/adjusted inventory with proportional consolidation of JVs and
associates - was a low 27% at end-2019 and around 33% at end-1H20.
Fitch expects leverage to increase to around 40% in the next few
years, but this depends on Zhongliang balancing fast-churn
contracted sales and land acquisitions.
Fitch estimates the unsold attributable land bank at end-1H20 was
sufficient for around 2.5-3 years of development and expects
Zhongliang to maintain land bank life at similar levels in the near
term.
JV Guarantees: Zhongliang provides guarantees to its JVs and
associates, which totalled CNY8.5 billion at end-1H20 and were
large relative to consolidated net debt of CNY17.8 billion. Fitch
assesses Zhongliang based on proportionate consolidation; however,
if Fitch was to measure leverage based on consolidated net debt and
guarantees/consolidated adjusted leverage, it would have been 67%
at end-2019 and 63% at end 1H20 - higher than that of most 'B+'
rated peers. This difference is due to low net leverage at JVs and
associates. Fitch expects the gap to narrow, as the company plans
to lower its guarantees.
Minority Shareholders: Fitch expects non-controlling interests as
percentage of Zhongliang's equity to edge down in the medium term;
total non-controlling interests in the company's balance sheet
accounted for 65% of total equity at end-1H20, which was higher
than that of 'B+' peers. This reflects Zhongliang's reliance on
cash from contracted sales and capital contributions from
non-controlling shareholders, which are mainly developers, as a
source of financing to expand scale. This lowers Zhongliang's need
for debt funding, but creates potential cash leakage.
DERIVATION SUMMARY
Zhongliang's attributable contracted sales are at the high-end of
the 'B+' peer range in terms of scale. Its land bank is also spread
more widely across China's core economic regions than that of
peers, such as Hong Kong JunFa Property Company Limited
(B+/Stable). However, more than 70% of Zhongliang's gross floor
area is in tier three and four cities (55% if it is in terms of
saleable value), which Fitch believes have less resilient demand
than first- and second-tier cities. Zhongliang's land bank quality
is also slightly weaker than that of 'B+' rated peers, with an
average selling price of CNY10,300/sqm in 2019.
Fitch estimates that Zhongliang's unsold attributable land bank at
end-2019 was equivalent to around 2.8 years of gross floor area
sold - shorter than that of fast-churn peers such as Risesun Real
Estate Development Co.,Ltd. (BB-/Stable) - with a land bank life of
3.5 years. This pressures Zhongliang to acquire land, even when
prices are not optimal, to maintain moderate growth. Zhongliang's
attributable contracted sales are at a similar scale to that of
CIFI Holdings (Group) Co. Ltd. (BB/Stable), but Zhongliang's net
inventory is only 36% of that of CIFI. This narrows its headroom to
weather the business cycle and explains its two-notch lower
rating.
Zhongliang's land bank penetration is comparable with that of
Guangzhou R&F Properties Co. Ltd. (B+/Negative), which has a much
longer operating history. Zhongliang has higher consolidated
leverage, including guarantees to JVs and associates, but also a
stronger cash/short-term debt ratio. Zhongliang's churn rate is
higher, but its EBITDA margin is lower. Zhongliang has higher
non-controlling interests as a percentage of total equity,
reflecting its greater reliance on minority shareholders for
funding.
Zhongliang's fast-churn model resulted in a contracted sales/total
debt ratio of 2.4x in 2019, one of the highest among Fitch-rated
Chinese homebuilders. Its EBITDA margin is at the lower end of 'B+'
rated peers and it has minimal investment-property interest
coverage. The company's 2019 IPO on the Hong Kong stock exchange
enhanced its financial transparency, leading to better regulatory
oversight compared with unlisted 'B+' peers, such as Helenbergh
China Holdings Limited (B+/Stable) and JunFa.
Zhongliang's proportionately consolidated leverage is lower than
that of peers, but guarantees to JVs and associates are large
relative to consolidated net debt and constrain its ratings.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer:
- Land bank life of three years till 2023;
- Gross floor area acquired is 1.1x-1.3x of gross floor area sold
in 2020-2023;
- Average selling price to rise by 17% in 2020 and 3% in 2021;
- Attributable contracted sales to rise by 5% a year in
2020-2021;
- Development-property cost of goods sold kept at 77% of sales in
2020-2023 (2019: 74%);
- Selling, general and administrative expenses at 4.8% of
contracted sales in 2020-2023 (2019: 4.8%);
- Dividend payout ratio of 40% in 2020-2023 (2019: 40%).
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Proportionate consolidated leverage sustained below 40% without
a large increase in guarantees to debts of JVs and associates;
- Available cash/short-term debt sustained above 0.8x.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Proportionate consolidated leverage above 40% for a sustained
period;
- Large increase in guarantees to debts of JVs and associates.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: Zhongliang's short-term debt amounted to CNY23
billion, or 43% of total debt, at end-1H20. Liquidity, as measured
by cash/short-term debt, was 0.9x. Total cash of CNY35 billion,
after taking into account restricted cash, was enough to cover
short-term debt by a multiple of 1.5x at end 1H20.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
=================
H O N G K O N G
=================
CATHAY PACIFIC: To Cut Over 5,000 Jobs; Close Dragon Brand
----------------------------------------------------------
Kyunghee Park at Bloomberg News reports that Cathay Pacific Airways
Ltd. will cut about 5,300 jobs based in Hong Kong and close its
Cathay Dragon unit as part of a sweeping overhaul of the city's
flag carrier triggered by the halt in air travel due to the
coronavirus pandemic.
Another 600 Cathay workers outside of Hong Kong may also be
affected, and 2,600 currently unfilled positions will be
eliminated, Bloomberg relates. The entire reduction of some 8,500
positions amounts to around 24% of Cathay's headcount, one of the
largest hits in the aviation sector globally since the outbreak
started, according to Bloomberg.
"The future remains highly uncertain and it is clear that recovery
is slow," Cathay said in a statement on Oct. 21. "The management
team has concluded that the most optimistic scenario it can
responsibly adopt is one in which, for the year 2021, the company
will be operating at well under 50% of the passenger capacity it
operated in 2019."
Bloomberg says Covid-19 has had a devastating impact on aviation.
As many as 46 million jobs are at risk, and airlines alone face
about $420 billion in lost revenue this year. Carriers with no
domestic market to fall back on, like Cathay and Singapore Airlines
Ltd., have been hit especially hard as international travel has
ground to a halt. Cathay's job cuts are among the most severe in
the industry, outnumbered by only a handful of others such as
Germany's Lufthansa and the two big U.S. carriers, American
Airlines Group Inc. and Delta Air Lines Inc.
According to Bloomberg, Cathay's restructuring is aimed at reducing
its monthly cash burn to about HK$500 million ($65 million) from
the current HK$1.5 billion to HK$2 billion, the carrier said. The
plan has been approved by the airline's board and will cost about
HK$2.2 billion, the report notes.
The airline had about $949 million in cash and cash equivalents as
of June 30, Bloomberg-compiled data show. Assuming the run rate can
be reduced to the stated goal, that gives Cathay around 15 months
before it's running on empty.
Bloomberg relates that the Hong Kong-based airline also said
Dragon's operations will cease from Oct. 21; regulatory approval
will be sought for the majority of its routes to be operated by
Cathay and Hong Kong Express Airways Ltd.
Closing down Dragon is reasonable given Cathay is facing problems
in the mainland market, Luya You, a transportation analyst with
Bocom International Holdings Co. in Hong Kong, said on Bloomberg
Television.
"It's possible there will be more cuts and more pain in the year
ahead," Bloomberg quotes You as saying. "Cathay's forecast moving
forward is very optimistic. Any deviation from that scenario does
mean there will be more cuts."
Cathay took over Hong Kong Dragon Airlines Ltd., now known as
Cathay Dragon, in 2006 for HK$8.22 billion, allowing the marquee
airline to expand in China, Bloomberg notes.
Dragon operated mainly narrow-body aircraft such as Airbus SE A320s
and A321s to destinations across Asia and more than 20 mainland
Chinese cities, including the lucrative Beijing and Shanghai
routes. The carrier had a fleet of 48 aircraft as of June 30 and
firm orders for 16 Airbus A321neo jets, Bloomberg discloses citing
Cathay's website.
About Cathay Pacific
Cathay Pacific Airways Ltd., also known as Cathay Pacific or
Cathay, is the flag carrier of Hong Kong, with its head office and
main hub located at Hong Kong International Airport. Cathay
operates scheduled airline services.
As reported in the Troubled Company Reporter-Asia Pacific on Sept.
10, 2020, Egan-Jones Ratings Company, on Sept. 3, 2020, downgraded
the foreign currency and local currency senior unsecured ratings on
debt issued by Cathay Pacific Airways Limited to CC from CCC. EJR
also downgraded the rating on commercial paper issued by the
Company to D from C.
CLUB 71: Bar to Close at the End of October
-------------------------------------------
Associated Press reports that nearly 15 years ago, Grace Ma decided
to name her bar Club 71, in commemoration of a July 1, 2003, rally
where hundreds of thousands of Hong Kongers protested a proposed
national security law for the semi-autonomous Chinese city.
"I took the name Club 71, because somehow it is more hopeful, with
half a million Hong Kong people having a demonstration, a rally, to
stand for themselves, not to ignore what's going on in Hong Kong,"
AP quotes Ms. Ma as saying.
For years, the storied bar has served as a watering hole for the
city's pro-democracy activists and intellectuals, who could freely
engage in discussions over a round of beer or two, AP relates.
Then the coronavirus pandemic hit and, in a blow to the city's
Western-style freedoms, the central government in Beijing in June
imposed a sweeping national security law targeting political
expression in response to massive anti-government protests last
year. For Ms. Ma, the troubles meant it was time to shutter the
business for good, AP says.
Months of government-mandated bar closures as part of coronavirus
restrictions had pushed Club 71's finances deeper into the red, and
operating the bar no longer made financial sense, she said, AP
relays. The bar will close at the end of October.
"We have closed for three months, out of the past six months," said
Ms. Ma, who is in her 60s. "For our business, it's impossible."
Social distancing restrictions have also halved the capacity of the
city's bars and restaurants, making it more difficult for them to
turn a profit, AP states.
"Restaurants are allowed to have four at one table . . . but bars
only two per table," she said, pointing out that bars have been
subject to much stricter restrictions, compared to eateries.
In the last days of the bar, customers have shown up in force,
gathering outside in the park and occasionally milling in and out
as they order pints of beer. The colorful interior walls are
plastered with posters advertising art exhibitions and
performances, as well as pro-democracy artwork.
"This is a place in Hong Kong where people can drop by and exchange
ideas, as long as everyone respects each other, they can say
whatever they want," AP quotes Ms. Ma as saying.
News of the bar's imminent closure was disappointing for some of
its regulars, who cherished the unique atmosphere and the mix of
people, AP notes.
"There are very few bars of this kind in Hong Kong. We call it the
quiet bar, which allows people to chat with each other," the report
quotes Keung Fung, 41, another loyal patron and a former Hong Kong
student union representative, as saying. "It is very unfortunate
(that the bar is closing)," he said. "I'll need to look for another
bar with similar atmosphere."
Some of Club 71's customers also include former lawmaker and
pro-democracy activist Leung Kwok-hung, known as "Long Hair" in
Hong Kong. Leung had been a regular in Club 71's predecessor, Club
64.
Ms. Ma had also run Club 64, before a skyrocketing rent forced her
to move to its current location in Hong Kong's Sheung Wan
neighborhood. It was then that she renamed the bar to Club 71, AP
notes.
CONCORD NEW: Fitch Assigns Final BB- Rating to $90MM Bonds
----------------------------------------------------------
Fitch Ratings has assigned Concord New Energy Group Limited's (CNE,
BB-/Negative) USD90 million 10.75% bonds due 2023 final ratings of
'BB-'.
The bonds consist of USD83.4 million that are exchanged with CNE's
existing US dollar bonds due January 2021 and a new issue of USD6.6
million of bonds.
The final rating follows a review of final documentation that
materially conforms with the draft documentation previously
reviewed. The final rating is the same as the expected rating
assigned on September 7, 2020. Proceeds from the bond issue will be
used to repay existing debt, fund wind and solar power projects and
for general corporate purposes.
Fitch thinks CNE's new issuance and recent project divestitures
have removed uncertainty about the refinancing its USD200 million
bonds due January 2021. The Negative Outlook on CNE's Issuer
Default Rating reflects slower-than-expected deleveraging. Fitch
may revise the Outlook to Stable over the following six months if
CNE continues its deleveraging and is on track to reduce FFO net
leverage below 6.0x on a sustained basis.
KEY RATING DRIVERS
Stable Operation in 1H20: CNE reported moderate revenue growth of
3.8% yoy in 1H20, after power generation from consolidated wind and
solar farms increased by 6.6%. Utilisation of wholly owned wind
farms rose by 5.1% yoy to 1,303 hours, while that of solar farms
declined by 7.8% to 743 hours. The consolidated wind farms'
realised tariff fell by 4.1% to CNY0.569/KWh. Consolidated capacity
decreased by a slight 96MW to 1,576MW on divestment of 196MW net of
100MW in new installations. CNE also received dividend income of
CNY169 million, higher than the CNY5.8 million received in 2019.
Profitable and Liquid Portfolio: Divestitures at a premium prove
the profitability and liquidity of CNE's project portfolio. CNE
sold 196MW of wind capacity in 1H20, realising investment gains of
CNY63 million. This followed its disposal of 225MW of wind farms in
three deals last year, which were priced at an average price/book
ratio of 1.5x and generated CNY174 million in investment gains. CNE
announced disposals of another 336MW of wind and solar farms in
September 2020, through which the company would recover more than
CNY1.3 billion, including both equity consideration and recovery of
shareholder loans.
Developing Grid-Parity Projects: CNE's development of grid-parity
projects and divestitures of feed-in-tariff projects will reduce
its reliance on renewable subsidies. CNE installed three
grid-parity wind-power projects, with total capacity of 149MW, in
2019. This accounted for around half of its new installations
during the year. New projects to be installed after 2020 will be
subsidy-free and their return will depend on location and the wind
or solar resources. The 2020 capex budget for grid-parity projects
is flexible and dependent on the progress of asset divestitures;
Fitch projects annual capex of CNY3.0 billion-3.5 billion in 2021
and 2022.
CNE still had 362MW of wind-power projects entitled to
feed-in-tariffs in the pipeline as of 1H20, all of which will be
completed this year. Fitch estimates outstanding capex payments for
these subsidised projects at around CNY1.8 billion in 2020. Fitch
expects subsidies to fall to less than a quarter of power revenue
in three to four years if CNE sticks to the divestment plan.
DERIVATION SUMMARY
CNE's rating reflects its healthy project portfolio and lower
reliance on subsidies as a revenue source as it focuses on wind
power in China. Its leverage and coverage metrics are broadly
commensurate with a low 'BB' rating.
CNE's credit profile is comparable with that if its Indian peers,
Greenko Energy Holdings (BB/Stable) and ReNew Power Private Limited
(BB-/Stable). CNE's FFO net leverage of 6.8x in 2019 was comparable
with its forecast of 6.7x for Greenko for the financial year ending
March 2020 (FY20). CNE is likely to have stronger FFO fixed-charge
coverage of around 2.7x in 2020, against its forecast of 1.7x for
Greenko and 1.5x for Renew in FY21, due to its falling funding
costs. CNE's smaller scale compared with Greenko is somewhat
balanced by its lower counterparty risk. The weak credit profiles
of Greenko's and Renew's key customers - state-owned power
distribution utilities - constrain their ratings. In comparison,
CNE derives revenue from strong state-owned power grids and
government subsidies.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Stable capacity utilisation for existing capacity; higher
utilisation for planned grid-parity wind power projects, reflecting
their location in better wind-resource areas.
- Stable tariffs at existing wind farms.
- Non-power generation revenue to rise by around 20% a year in
2020-2022.
- Annual net capacity addition (divested capacity subtracted from
installed capacity) of 300MW in the next few years.
- Annual capex of CNY3.0 billion-3.4 billion in 2020-2023.
- Annual dividend payment of CNY150 million-200 million in
2020-2023.
- Fitch adds back half of CNE's value-added-tax (VAT) bill on
equipment investment to EBITDA and funds from operation.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Fitch would revise the Outlook to Stable if CNE does not breach
the negative sensitivities triggers within the next six months
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Failure to make material progress toward securing sufficient
funding to repay US-dollar bond due in January 2021 within the next
four to six weeks
- FFO net leverage higher than 6.0x for a sustained period
- FFO fixed-charge coverage lower than 2.5x for a sustained
period
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: CNE had CNY1.3 billion of readily available
cash at end-1H20, compared with short-term debt of CNY1.8 billion.
Fitch forecasts that CNE's CFO of CNY551 million in 2020, together
with existing cash, should be sufficient to cover the equity
capital component of its capex and project-level debt amortisation
in 2020. Fitch expects that 70% of the CNY3.4 billion capex for
2020 can be financed by project loans or financial leasing. Fitch
thinks CNE's new issuance of US dollar bonds and recent project
divestments have removed uncertainty about the refinancing its
USD200 million bonds due January 2021.
SUMMARY OF FINANCIAL ADJUSTMENTS
VAT Deduction: Wind and solar farms enjoy a 50% VAT rebate as an
incentive for supplying renewable energy. Wind farm revenue is net
of VAT and only the 50% rebate is reflected in the income statement
and included as EBITDA. Wind farms are exempt from VAT in the first
five operating years, during which they do not pay VAT or receive
rebates. The amount of VAT that has been exempted, although 100%
retained by wind farms, is not reflected in the income statement.
Fitch has adjusted CNE's EBITDA by adding 50% of the VAT that has
been exempted.
External Guarantee: CNE continues to provide a guarantee on a bank
loan of a project it sold to an overseas renewable fund last year.
Fitch includes 50% of the guaranteed amount in the calculation of
CNE's leverage because the loan repayment is covered by the
projects' operating cash flow.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
=========
I N D I A
=========
134 INFRA: Ind-Ra Affirms 'BB+' LT Issuer Rating, Outlook Negative
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has revised 134 Infra LLP's
Outlook to Negative from Stable while affirming its Long-Term
Issuer Rating at 'IND BB+'.
The instrument-wise rating action is:
-- INR1.210 bil. Term loan due on October 2022 Outlook revised to
Negative from Stable; affirmed with IND BB+/Negative rating.
KEY RATING DRIVERS
The Negative Outlook reflects Ind-Ra's expectation of pressure on
the firm’s debt-servicing ability owing to slow sales velocity at
its sole project in Surat (Gujarat). As of September 2020, only 54
units, of the total 141 units were booked at the firm's CASA Rivera
project build on Pal-Hazira Road, and the firm received advances of
INR545.6 million against piled up pending receivables of INR832.5
million. Ind-Ra foresees pressure on its cash flows for debt
repayment as the firm is dependent on the sale of new units and the
timely receipt of receivables.
Liquidity Indicator - Stretched: 134 Infra's repayment of the
principal term loan will begin from March 2021. This scheduled debt
repayment is dependent upon the timely receipt of receivables and
cash receipt from the new sales. The firm's cash flow was severely
impacted by the COVID-19-led lockdown over April-August 2020. The
firm availed of the Reserve Bank of India-led moratorium on its
interest obligations for April-August 2020. Ind-Ra expects the firm
to register a minimum debt service coverage ratio of 1.16x during
the repayment period of FY21-FY23, and lower-than-expected inflows
can create cash-flow mismatches.
The ratings are also constrained by the time and cost overrun risks
associated with the CASA Rivera project. The total cost of the
project is INR2,980.4 million, of which 49% of the construction was
still pending, as of March 31, 2020. The project completion
timeline has been impacted due to the COVID-19 led lockdown in
country and got extended by six months to March 2022 from September
2021.
The ratings also factor in Ind-Ra's expectation of overall
residential demand declining over 40% yoy in FY21, after
registering a fall of 5% yoy in FY20 due to the ongoing COVID-19
pandemic. Ind-Ra believes the demand risk will persist, due to the
discretionary nature of this form of investment and the likely job
and income loss in the country amid the ongoing COVID-19 led
economic slowdown.
The ratings, however, continue to be supported by the partners'
track record in successful project completion and extensive
experience in the Surat real estate market. It has 14 partners, who
are promoters of Marvella Group and Vasupujaya Group, each of which
has over 10 years of experience in Surat's real estate market.
Vasupujaya Group has completed nine residential projects with total
saleable area of 2.5 million square feet and Marvella Group has
completed nine projects with total saleable area of 2.6 million
square feet.
RATING SENSITIVITIES
Negative: Lower-than-expected bookings, slow realization of
customer advances and/or further significant time or cost overruns
could result in a downgrade.
Positive: Timely cash inflows from bookings and realization of
customer advances along with timely project execution without
additional debt, could result in outlook revision to stable.
COMPANY PROFILE
134 Infra was converted into a limited liability partnership from a
partnership firm on December 15, 2017. The 14-partner firm is
engaged in the construction of residential and commercial real
estate projects in Surat, Gujarat.
ALAPATT JEWELS: ICRA Keeps B Debt Rating in Not Cooperating
-----------------------------------------------------------
ICRA said he ratings for the INR5.50-crore bank facilities of
Alapatt Jewels (AJ) Continues to remain under Issuer Not
Cooperating' category'. The Long term ratings are denoted as
"[ICRA]B (Stable) ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term–Fund 5.50 [ICRA]B (Stable); ISSUER NOT
Based-Cash Credit COOPERATING; Rating Continues
to remain under Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
Alapatt Jewels is a Cochin-based partnership firm established by
Mr. Manuel Alapatt in 2000, which is involved in manufacturing and
selling of gold and diamond jewellery through its 10,000-square
feet retail showroom in Ernakulam, Cochin. It sources gold in the
form of old gold from customers and outsources the same to
goldsmiths in the region for converting them into ornaments.
Besides, the firm also deals in traded jewellery procured from
merchants based out of Mumbai and Bangalore.
AMBIKA REALCON: Ind-Ra Moves BB Issuer Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Ambika Realcon
Private Limited's Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will now
appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating action is:
-- INR400 mil. Term loan due on March 2023 migrated to non-
cooperating category with IND BB (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
September 9, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2006, Ambika Realcon is a real estate developer.
The ongoing residential project, located in Mullanpur (New
Chandigarh) has a total built-up area of 1.32 million sf. Post the
launch of phase III, ARPL's total build-up area will be 1.57
million.
APOLLO INT'L: ICRA Cuts Rating on INR111.84cr Loan to B+/A4
-----------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Apollo
International Limited (AIL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based– 33.05 [ICRA]A4 ISSUER NOT
COOPERATING;
Working Capital Rating downgraded from [ICRA]A4+
Facilities and moved to the 'Issuer Not
Cooperating' category
Non-fund Based– 111.84 [ICRA]B+ (Stable) ISSUER NOT
Working Capital COOPERATING/[ICRA]A4 ISSUER NOT
Facilities COOPERATING; Rating downgraded
from [ICRA]BB+ (Stable)/
[ICRA]A4+ and moved to the
'Issuer Not Cooperating'
Category
Unallocated 55.11 [ICRA]B+ (Stable) ISSUER NOT
Limits COOPERATING/[ICRA]A4 ISSUER NOT
COOPERATING; Rating downgraded
from [ICRA]BB+ (Stable)/
[ICRA]A4+ and moved to the
'Issuer Not Cooperating'
Category
Rationale
The ratings downgrade is because of lack of adequate information
regarding AIL'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 Apollo International 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.
AIL started off as a Group company of the Apollo Tyres Group, as a
100% subsidiary of Apollo Tyres Limited (ATL) to facilitate the
export of tyres manufactured by the latter. Post FY2016, the
company ceased to be a 100% subsidiary of ATL, and following a
shareholding realignment exercise at the promoter group level in
FY2017, the stake of Apollo Finance Limited (controlled by Mr.
Onkar S. Kanwar, Chairman of ATL) was transferred to OSK Holdings
AIL Private Limited and AIL Consultants Private Limited (entities
controlled by Mr. Raaja Kanwar), in lieu of certain marketable
investments held by AIL. The company, at present, operates via
three business divisions:
(i) International tendering business
(ii) Export of leather garments and accessories
(iii) Trading of tyres
It serves as a holding company for other Group companies that are
involved in the trading of tyres and logistics, with the key entity
being Apollo Logisolutions Limited.
ASHISH INFRACON: Ind-Ra Moves BB+ Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Ashish Infracon
Private Limited's (AIPL) Long-Term Issuer Rating of 'IND BB+' to
the non-cooperating category and has simultaneously withdrawn it.
The instrument-wise rating actions are:
-- INR100 mil. Fund-based working capital limits* migrated to the
non-cooperating and withdrawn; and
-- INR600 mil. Non-fund-based working capital limit** migrated to
the non-cooperating and withdrawn.
*Migrated to 'IND BB+ (ISSUER NOT COOPERATING)'/'IND A4+ (ISSUER
NOT COOPERATING)' before being withdrawn
**Migrated to 'IND A4+ (ISSUER NOT COOPERATING)' before being
withdrawn
KEY RATING DRIVERS
AIPL did not participate in the rating exercise despite continuous
requests and follow-ups by Ind-Ra.
Ind-Ra is no longer required to maintain the ratings as the agency
has received a no objection certificate from the lender. This is
consistent with the Securities and Exchange Board of India's
circular dated March 31, 2017 for credit rating agencies.
COMPANY PROFILE
Incorporated in 2010, Ahmedabad-based AIPL undertakes civil and
infrastructure construction, primarily in the road and earthwork
segments.
BALAJI CONSTRUCTION: ICRA Moves B+ Ratings to Not Cooperating
-------------------------------------------------------------
ICRA Ratings has migrated the rating on bank facilities of Sri
Balaji Construction (SBC) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
LT: Fund Based 3.00 [ICRA]B+(Stable) ISSUER NOT
Limit/CC COOPERATING; ratings moved to
'Issuer Not Cooperating
Category
ST: Non Fund
Based Limit/BG 6.30 [ICRA]A4 ISSUER NOT
COOPERATING; Rating moved to
issue not cooperating category
LT/ST: Unallocated 0.70 [ICRA]B+(Stable)/[ICRA]A4
ISSUER NOT COOPERATING;
Rating moved to issue not
cooperating category
Rationale
The rating action is based on lack of adequate information
regarding SBC'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 SBC, 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.
Sri Balaji Constructions (SBC) was established in 1994 by Mr. Kodur
Purandhar Reddy. SBC is in the business of construction and
maintenance of roads, under bridges, tunnels and construction of
canals and irrigation tanks for government departments. The firm
primarily operates in Nellore district of Andhra Pradesh and is a
class-I contractor executing projects for SC Railway, I&CAD
Department of Andhra Pradesh etc.
BETAIN CAREER: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Betain Career Institute Private Limited
Shop No. 1-AB
F.F. Siddhi Vinayak Paradise
R.S.No. 221/1
Gangeshwar Road
Adajan, Surat 395009
Insolvency Commencement Date: October 13, 2020
Court: National Company Law Tribunal, Vadodara Bench
Estimated date of closure of
insolvency resolution process: April 11, 2021
Insolvency professional: Sachin Dinkar Bhattbhatt
Interim Resolution
Professional: Sachin Dinkar Bhattbhatt
A-103, Yogiraj Villa 2
Behind Iscon Heights
Kunal Cross Road
Gotri-Laxmipura Road
Gotri, Vadodara 390023
Gujarat
E-mail: sachin.bl.attbhatt@gmail.com
Last date for
submission of claims: October 29, 2020
BHAWAR LIFESTYLE: ICRA Lowers Rating on INR9cr LT Loan to B+
------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Bhawar
Lifestyle (BLS), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term– 9.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based COOPERATING; Rating downgraded
Cash Credit from [ICRA]BB (Stable) and
moved to 'Issuer Not
Cooperating' category
Short Term– 10.00 [ICRA]A4 ISSUER NOT
Fund Based COOPERATING; Rating moved to
Channel Financing 'Issuer Not Cooperating'
Category
Short Term– 20.00 [ICRA]A4 ISSUER NOT
Non-Fund Based COOPERATING; Rating moved to
Bank Guarantee 'Issuer Not Cooperating'
Category
Long Term/Short 11.00 [ICRA]B+(Stable)/A4 ISSUER NOT
Term Unallocated COOPERATING; Rating downgraded
limits From [ICRA]BB(Stable)/A4 and
moved to 'Issuer Not
Cooperating' category
Rationale
The rating downgrade is because of lack of adequate information
regarding BLS 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 BLS, 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.
Bhawar Lifestyle (BLS) was founded by Mr. B Sunil Kumar in 2000.
BLS is involved in the distributor and retailer businesses. It is a
distributor for Reliance Jio, Apple products, Amazon, Nano Keratin
and Dyson and is a retailer of several brands which include Puma,
Fabindia, Amante, Amazon, Xiaomi, Oneplus, New Balance, Sketchers
and Miniso. It currently has 52 retail outlets under the retailer
business in Karnataka, Hyderabad, Tamil Nadu and West Bengal.
BIOPAC INDIA: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Biopac India Corporation Limited
Survey No. 38
Silvassa Khanvel Road
Dapada Silvassa
Dadar & Nagar Haveli
IN 396230
Insolvency Commencement Date: October 13, 2020
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: April 11, 2021
Insolvency professional: Saaurabh Jhaveri
Interim Resolution
Professional: Saaurabh Jhaveri
6th Floor, 620 Jolly Plaza
Opp. Athwagate Circle
Athwagate, Surat 395001
E-mail: sjhaveri333@gmail.com
Last date for
submission of claims: October 29, 2020
DRUPA SUPPLIERS: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Drupa Suppliers Private Limited
801 Avdhesh House 8th floor
Opp Guru Gobind Gurudwara
Sarkhej-Highway
Thaltej Ahmedabad 54
Insolvency Commencement Date: October 8, 2020
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: April 6, 2021
(180 days from commencement)
Insolvency professional: Amrish Navinchandra Gandhi
Interim Resolution
Professional: Amrish Navinchandra Gandhi
504, Shivalik Abaise
Opp. Shell Petrol Pump
Near Anand Nagar Bus Stand
Satellite, Ahmedabad
Gujarat 380015
E-mail: amrishgandhi72@gmail.com
Last date for
submission of claims: October 28, 2020
ESSAR POWER: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Essar Power M P Limited
Lower Ground Floor
Hotel Conclave Boutique
A-20, Kailash Colony
New Delhi 110048
Insolvency Commencement Date: September 29, 2020
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: March 28, 2021
(180 days from commencement)
Insolvency professional: Ashish Chhawchharia
Interim Resolution
Professional: Ashish Chhawchharia
Grant Thornton
10C Hungerford Street
Kolkata 700017
E-mail: ashish.chhawchharia@in.gt.com
- and -
Grant Thornton
11th Floor, Tower II
One International Center
S B Marg, Elphinstone (W)
Mumbai 400013
E-mail: rp.epmpl@in.gt.com
Last date for
submission of claims: October 22, 2020
GOKUL COTTON: ICRA Moves B+ Debt Ratings to Not Cooperating
-----------------------------------------------------------
ICRA Ratings has migrated the rating on bank facilities of Gokul
Cotton Industries (GCI) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 9.00 [ICRA]B+(Stable) ISSUER NOT
COOPERATING; Rating moved to
'issuer not cooperating
category'
Unallocated 11.00 [ICRA]B+(Stable) ISSUER NOT
Limits COOPERATING; Rating moved to
'issuer not cooperating
category'
ICRA has moved the long-term rating for the bank facilities of GCI
to the 'Issuer Not Cooperating' category. The rating is now denoted
as "[ICRA]B+(Stable); ISSUER NOT COOPERATING".
As part of its process and in accordance with its rating agreement
with Gokul Cotton Industries, 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.
GCI was established as a partnership firm in September 2013 and
started the business of ginning and pressing of cotton from April
2014. GCI's manufacturing facility is located at Tankara, in the
Rajkot district of Gujarat. The unit is equipped with 32 ginning
machines and one pressing machine and has a processing capacity of
approximately 16000 MTPA of raw cotton. The key promoters of the
firm Mr. Dinesh R. Bhoraniya and Mr. Mulji G. Ghodasara, have
extensive experience in the cotton ginning business.
KVR PROJECTS: ICRA Cuts Rating on INR5.0cr LT Loan to B+
--------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of KVR
Projects Private Limited (KVRPPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund 5.00 [ICRA]B+(Stable) ISSUER NOT
Based/CC COOPERATING; Rating downgraded
from [ICRA]BB-(Negative) and
Moved to the 'Issuer Not
Cooperating' category the
outlook revised to Stable
from Negative
Short Term- 15.00 [ICRA]A4 ISSUER NOT
Non-Fund Based COOPERATING; Moved to the
'Issuer Not Cooperating'
Category
Long Term/short 21.00 [ICRA]B+(Stable)/[ICRA]A4;
Term Unallocated ISSUER NOT COOPERATING;
Long term Rating downgraded
from [ICRA]BB-(Negative) and
Moved to the 'Issuer Not
Cooperating' category. The
outlook revised to Stable
from Negative
Rationale
The rating downgrade is because of lack of adequate information
regarding KVRPPL 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 KVR Projects 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.
KVR Projects Private Limited (KVRPPL) was established in 1991 under
the name of K Venkat Raju. It was converted into a private limited
company on March 31, 2014 to bid for national level orders and was
renamed to KVR Projects Private Limited. The company, founded by
Mr. K. Venkata Raju, undertakes projects in areas like irrigation,
railways and roads and is a special class contractor in Andhra
Pradesh.
M R STEEL: ICRA Lowers Rating on INR8cr Term Loan to B+/A4
----------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of M R
Steel Corporation (MRSC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/short 8.00 [ICRA]B+(Stable)/[ICRA]A4;
Term Unallocated ISSUER NOT COOPERATING;
Long term Rating downgraded
from [ICRA]BB-(Stable) and
Short term rating Moved to
the 'Issuer Not Cooperating'
category
Rationale
The rating downgrade is because of lack of adequate information
regarding MRSC 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 M R Steel Corporation, 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.
MRSC is a trader in iron and steel products and currently operates
a JSW Shoppe and an Essar Expressmart outlet. The JSW dealership
has been with the firm since the last five years whereas Essar
dealership was received by the firm in FY2013. Prior to the
dealerships, MRSC operated as a steel trader like the numerous
players who operate in the industry.
MANICKBAG AUTOMOBILES: ICRA Cuts Rating on INR10cr LT Loan to B+
----------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of
Manickbag Automobiles Pvt Ltd, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund 10.00 [ICRA]B+ (Stable) ISSUER NOT
Based–Cash Credit COOPERATING; Rating downgraded
from [ICRA]BB (Stable) ISSUER
NOT COOPERATING and continues
to remain under Issuer Not
Cooperating' category
Rationale
The rating is downgraded because of lack of adequate information
regarding Manickbag Automobiles Pvt Ltd performance and hence the
uncertainty around its credit risk. ICRA assesses whether the
information available about the entity is commensurate with its
rating and reviews the same as per its "Policy in respect of
non-cooperation by the rated entity". The lenders, investors and
other market participants are thus advised to exercise appropriate
caution while using this rating as the rating may not adequately
reflect the credit risk profile of the entity, despite the
downgrade.
As part of its process and in accordance with its rating agreement
with Manickbag Automobiles Pvt Ltd, ICRA has been trying to seek
information from the entity so as to monitor its performance, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 1, 2016, ICRA's Rating Committee has taken a rating
view based on the best available information.
Based out of Belgaum, Manickbag Automobiles Pvt Ltd, is engaged in
the dealership of Tata commercial vehicles (CV) and passenger
vehicles (PV) in North Karnataka region. The entity started its
operations in 1956 with the sub-dealership of Ashok Leyland
vehicles. It started Tata CV dealership in 1992 and added the PV
division in 1997. In 2002, the entity was incorporated as a company
under the name Manickbag Automobiles Pvt Ltd. MAPL currently
operates 10 CV showrooms, 1 PV showroom and 4 showrooms catering to
both PV and CV, located across North Karnataka. In addition, the
company also undertakes dealerships for Suzuki two wheelers and LG
and Toshiba consumer goods.
MANIKANTA COTTON: ICRA Moves B+ Debt Ratings to Not Cooperating
---------------------------------------------------------------
ICRA Ratings has migrated the rating on bank facilities of
Manikanta Cotton Agro Industries (MCAI) to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
LT: Fund Based 10.50 [ICRA]B+(Stable) ISSUER NOT
Limit/CC COOPERATING; ratings moved to
'Issuer Not Cooperating
Category
LT: Fund Based 0.84 [ICRA]B+(Stable) ISSUER NOT
Limit/TL COOPERATING; ratings moved to
'Issuer Not Cooperating
Category
LT: Unalloacted 4.66 [ICRA]B+(Stable) ISSUER NOT
COOPERATING; ratings moved to
'Issuer Not Cooperating
Category
Rationale
The rating action is based on lack of adequate information
regarding MCAI'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 MCAI, 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.
MCAI was set up as a partnership firm in 2013 by Mr. D. Malla Reddy
and Mr. P. Ravinder Reddy and six other partners, with ginning
activity as its main operations. MCAI is a TMC unit, involved in
extraction of cotton lint and cotton seeds from kapas. The firm has
its production facility located at Muthannapeta village, Karimnagar
district, Telangana. At present, it is operating 36 gins and one
pressing unit with a production capacity of 86,400 bales per annum.
The managing partners, Mr. D. Malla Reddy and Mr. P. Ravinder Reddy
also serve as managing partners of other textile units namely M/s
Saritha Cotton Industries operating with 24 gins, four oil
expellers and one pressing machine and M/s Sri Balaji Cotton
Industries operating with 40 gins and one pressing unit.
MYTRAH VAYU: ICRA Reaffirms B- Rating on INR915.90cr Loan
---------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of Mytrah
Vayu (Indravati) Private Limited (MVIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based-
Term Loan 915.90 [ICRA]B- (Negative); Reaffirmed
Fund-based–
Cash Credit 100.00 [ICRA]B- (Negative); Reaffirmed
Unallocated 134.10 [ICRA]B- (Negative); Reaffirmed
Rationale
ICRA's continuation of the negative outlook on the rating assigned
to MVIPL factors in the uncertainty over timelines for resolution
of the tariff issue for its 105-MW wind power project tied-up under
the long-term power purchase agreement (PPA) with Southern Power
Distribution Company of Andhra Pradesh Limited (APSPDCL).
On July 1, 2019, the Government of Andhra Pradesh had issued a
notification forming a high-level negotiation committee (HLNC) to
review, negotiate and bring down the cost of wind and solar PPAs
tied-up by the state distribution utilities. Based on the petition
filed by the affected developers, the High Court of Andhra Pradesh
(APHC), vide its order dated September 24, 2019, quashed the
notification issued by the Government and asked parties to approach
the Andhra Pradesh Electricity Regulatory Commission (APERC) to
decide on the tariff issue. Furthermore, the APHC directed the
discoms to make payments to wind power developers at the interim
tariff rate of INR2.43/Kwh, till the resolution of the tariff
issue. The court has suggested a time frame of six months for APERC
to decide on the issue. However, the resolution of the tariff issue
is pending, with the APERC yet to decide on this matter. Meanwhile,
the developers approached the division bench of the APHC against
the single bench order of referring the matter to the APERC. The
resolution process is further delayed because of the Covid-19
pandemic-induced lockdown. The resolution of the ongoing tariff
issue with APSPDCL remains a key rating sensitivity for MVIPL.
While the company has received partial payments from APSPDCL at the
interim rate of INR2.43 per unit as directed by the Andhra Pradesh
High Court, the overall receivable position continues to remain
high from APSPDCL. This apart, the rating continues to factor in
the risks arising from the vulnerability of cash flows to
seasonality and variance in wind power density, given that the
revenues are linked to the actual units generated and exported.
While the geographic diversity of the wind power assets across two
states provides cushion against the variation in wind availability,
the actual generation track record has remained below the P90
estimate. The generation by the wind power capacity declined by
9.9% on a year-on-year (YoY) basis in FY2020, partly because of the
grid curtailments witnessed in Andhra Pradesh. Moreover, the
generation declined by 22.6% in the first four months of FY2021 on
a YoY basis. This along with the high leverage level (Total debt /
OPBDITA at 7.72 times as of March 2020) is expected to result in
weak debt coverage metrics for the company in the near term. Also,
the debt coverage metrics remain sensitive to any movement in
interest rates. ICRA also notes that the company's operations
remain exposed to regulatory challenges arising from the
implementation of scheduling and forecasting framework, as
approved by the APERC and the Rajasthan Electricity Regulatory
Commission (RERC). Further, the financial profile of the Mytrah
Group has been affected by the delays in realising payments for its
portfolio in Andhra Pradesh and Telangana.
However, the rating favorably factors in the limited demand risks
because of the presence of long-term PPAs with APSPDCL for 105 MW
and with Jodhpur Vidyut Vitaran Nigam Limited (JVVNL) for the
balance 50.4 MW. Further, ICRA takes note of the improvement in
collections from JVVNL, with bills cleared till April 2020, as
against more than 10 months overdue position as of March 2020. This
along with the receipt of payments at the interim rate from APSPDCL
and the moratorium availed by the company has improved the
liquidity profile of the company to a certain extent. However, the
pending resolution of the tariff issue creates uncertainty over the
liquidity position over the near to medium term. Further, the
rating factors in the presence of a 20-year contract (including the
first two-year free period) with Suzlon Global Services Limited for
the operation & maintenance (O&M) of the wind turbine generators
(WTGs). ICRA further draws comfort from the track record of the
Group in developing and operating renewable power assets,
aggregating to 1.7 GW across eight states.
ICRA notes that MVIPL had sought a moratorium on principal payments
from its lender for the payments on the term loans between March
2020 and August 2020 and the lender has approved the same, as
allowed per the COVID-19 - Regulatory Package announced by the
Reserve Bank of India on March 27, 2020 and
May 23, 2020. The above rescheduling of loans has been factored in
the rating.
Key rating drivers and their description
Credit strengths
* Limited demand risks: MVIPL has signed long-term PPAs with
APSPDCL and JVVNL for the full capacity at the approved feed-in
tariff rates for a period of 25 years, mitigating demand risks.
Furthermore, the projects are availing GBI benefit of INR0.5 per
unit.
* Geographic diversity of portfolio: The geographic diversity of
the company's wind farms, 105 MW at Vajrakarur in Andhra Pradesh
and 50.4 MW at Bhesada in Rajasthan, offsets the risk of variation
in wind availability and the counterparty credit risk to some
extent.
* Long-term O&M contract with Suzlon: The company has signed a
20-year O&M contract with Suzlon Global Services Limited, with
pricing fixed for a period of 10 years. The agreement provides
machine availability guarantee for the wind turbine generators
(WTGs), with clauses for liquidated damages in case of shortfall in
machine availability, subject to caps agreed in the contract.
* Demonstrated track record of Mytrah Group: The Group has
demonstrated significant track record in developing and operating
renewable power assets, with operational wind power capacity of 1.7
GW spread across eight states.
Credit challenges
* High counterparty credit risk; uncertainty remains over tariff
issue: The counterparty credit risks remain high owing to the
exposure to APSPDCL and JVVNL, given their weak financial profile.
While the company has received partial payments from APSPDCL at the
interim rate of INR2.43 per unit as directed by the Andhra Pradesh
High Court, the overall receivable position remains high because of
the ongoing tariff issue. While the developers also approached the
division bench of APHC against the issue being referred to APERC,
the APHC is yet to issue any order in this matter. However, the
collections from JVVNL have improved, with the overdue position
reducing to three months as of August 2020 from 10 months in March
2020.
* Generation performance remains below P90 estimate: The generation
by the 155.4 MW wind power capacity of MVTPL witnessed a decline of
9.9% in FY2020 over FY2019, with reported PLF of 21.3% against P90
estimate of 24.2% and reported PLF of 23.7% in FY2019, because of
grid curtailments in Andhra Pradesh. Also, the generation declined
by 22.6% in the first four months of FY2021 compared to the
corresponding period of the previous year.
The historical performance of the portfolio under MVIPL remained
below the P90 estimate.
* High leverage level and weak debt coverage metrics: The debt
coverage metrics of the company are constrained, given the high
leverage level (external debt/OPBDITA at 7.2 times in FY2020) and
the under-performance in generation by the wind farms against the
P90 estimate. Also, the debt coverage metrics remain sensitive to
any movement in interest rates.
* Debt metrics of project remain sensitive to PLF levels because of
one-part tariff structure: The debt metrics of the project remain
sensitive to the generation from the wind farms, given the one-part
tariff structure; as a result, any adverse variation in wind
conditions may impact PLF and consequently, the cash flows.
* Group's financial profile: The financial profile of the Mytrah
Group has been affected by the delays in realizing payments for its
portfolio in Andhra Pradesh and Telangana and the delays in raising
equity at the holding company level.
* Challenges associated with implementation of forecasting and
scheduling regulations: The regulatory challenges from the
implementation of scheduling & forecasting framework for wind power
projects in Andhra Pradesh and Rajasthan pose a risk, given the
limited experience in scheduling and forecasting for the industry
players in India and the variable nature of wind energy
generation.
Liquidity position: Stretched
The liquidity profile of the company is constrained by the large
pending dues from APSPDCL, as the resolution of the tariff issue is
still awaited. While the liquidity has improved in the recent
months, supported by the realisation of payments from JVVNL, the
payments at interim tariff from APSPDCL along with the moratorium
availed between March 2020 to August 2020 from the lenders under
RBI's Covid-19 regulatory package, the pending resolution of the
tariff issue creates uncertainty over the liquidity position over
the near to medium term. The company has cash and DSRA balance of
53.7 crore, which along with the undrawn working capital limit,
provides visibility on near term liquidity.
Rating sensitivities
Positive triggers – ICRA could revise the long-term outlook to
Stable for MVIPL, post resolution of the tariff issue with APSPDCL.
Further, the stabilisation of the payment cycle from APSPDCL and
JVVNL, leading to a sustainable improvement in the liquidity
profile of the company, would be the key positive trigger for the
rating.
Negative triggers - Negative pressure on MVIPL's rating could arise
if the tariff issue with APSPDCL is not resolved in the near term,
leading to further accumulation of receivables and weakening of the
liquidity position. Also, any under-performance in generation by
the wind power capacity, leading to inadequacy of cash flows in
relation to debt servicing obligations, would be a negative
trigger.
MVIPL, incorporated in June 2012, is a special purpose vehicle
(SPV) promoted by Mytrah Energy (India) Private Limited (MEIPL).
MVIPL is operating a 155.4-MW wind power capacity, comprising of
105 MW at Vajrakarur in Andhra Pradesh and 50.4 MW at Bhesada in
Rajasthan. The project in Andhra Pradesh was fully commissioned in
March 2016, while the project in Rajasthan was fully commissioned
in December 2015. The project has been developed at a total cost of
INR1158.23 crore. The company has tied-up long-term PPAs, with the
respective state distribution utilities for the wind power
projects, at the feed-in tariff rate of INR4.83 per unit in Andhra
Pradesh and INR5.74 per unit in Rajasthan. The project was
developed by MEIPL, with WTGs supplied by Suzlon. MEIPL,
incorporated in November 2009, is a leading wind power IPP in
India, with operational wind and solar power capacity of 1.7 GW
spread across eight states under various SPVs.
RAGHU RAMA: ICRA Reaffirms B+ Rating on INR16cr Loans
-----------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of Raghu
Rama Rice Industry (RRRI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based–
Cash credit 12.00 [ICRA]B+(Stable); reaffirmed
Fund based–
Term loan 1.00 [ICRA]B+(Stable); reaffirmed
Unallocated
limits 3.00 [ICRA]B+(Stable); reaffirmed
Rationale
The rating reaffirmation considers RRRI's small scale of operations
with intense competition in the rice milling industry, restricting
its operating margins. The rating considers the firm's weak
financial risk profile, characterised by a high gearing and
stretched coverage indicators. The rating factors in its stretched
liquidity position owing to increased working capital requirements
because of high inventory holding, leading to full utilisation of
working capital limits. The rating factors in the agro-climatic
risks, which can affect the availability of the paddy in adverse
weather conditions and the risks arising from the partnership
nature of the firm. ICRA notes that RRRI had sought a moratorium on
interest payments from its lenders until August 31, 2020 and the
lenders have approved the same, as allowed under the COVID-19 -
Regulatory Package announced by the Reserve Bank of India on March
27, 2020.
The rating, however, positively factors in the extensive track
record of its promoters in the rice milling industry and ease
in paddy procurement owing to the proximity of its plant to a major
paddy cultivating region of Andhra Pradesh. The rating considers
the favourable demand prospects of the industry with India being
the second largest producer and consumer of rice internationally,
which augurs well for the firm. The Stable outlook on the [ICRA]B+
rating reflects ICRA's opinion that RRRI will be able to maintain
its profitability and sustain its scale of operations.
Key rating drivers and their description
Credit strengths
* Significant experience of partners in rice milling and trading
business: The partners have established presence in the rice
milling industry with over two decades of experience, resulting in
established relationship with its customers.
* Presence in major paddy growing region: RRRI's plant is located
in Jagannadhagiri village of East Godavari district, Andhra
Pradesh, which is a major rice growing area, resulting in easy
availability of paddy and low transportation cost for the firm.
* Favourable demand prospects for rice: The demand prospects for
the rice industry are expected to remain good as rice is a staple
food grain and India is the world's second largest producer and
consumer of rice.
Credit challenges
* Small scale of operations: RRRI is a small-scale player in a
highly fragmented and competitive rice milling industry,
characterised by the presence of a large number of organised and
unorganised players, impacting the margins. Moreover, the firm's
revenues and capacity utilisation declined in FY2020 owing to
intense competition and subdued demand from its customers,
especially from Kerala.
* High gearing and stretched coverage indicators: The firm's
financial profile is characterised by high gearing of 1.8 times as
on March 31, 2020, low operating margin of 4.4% in FY2020 and
moderate coverage indicators with an interest coverage ratio of 1.6
times, Total Debt/OPBITDA of 5.4 times and NCA/Total Debt of 6.5%
in FY2020.
* Intense competition in industry: The rice milling industry is
characterised by stiff competition from of a large number of
organised and unorganised players, which impacts its profit
margins.
* Industry susceptible to agro-climatic risks and Government
policies: The rice milling industry is susceptible to agroclimatic
risks, which can affect the availability of the paddy in adverse
weather conditions. It is exposed to Government policies such as
MSP, affecting the raw material prices.
* Risk related to partnership nature of firm: Given the firm's
constitution as a partnership firm, it is exposed to risks
including the possibility of capital withdrawal by the partners as
witnessed over the years.
Liquidity position: Stretched
RRRI's liquidity position is stretched with high working capital
utilisation of almost ~100% and low free cash balances. Moreover,
the firm has term loan repayment obligation of INR0.5 crore as on
March 31, 2020. However, it has availed additional Covid-19 limits
of INR2.4 crore, which will provide some comfort to the liquidity.
Rating sensitivities
Positive triggers – ICRA could upgrade RRRI's rating if the
company demonstrates a sustained improvement in its revenues and
margins, leading to healthy coverage indicators and improves its
liquidity. Specific credit metrics that could lead to an upgrade of
RRRI's rating include interest coverage ratio remaining at more
than 2.0 times on a sustained basis.
Negative triggers – Negative pressure on the rating could arise
if there is a significant decline in revenues or margins leading to
a further stretch in coverage indicators.
Founded in 2012 as a partnership firm, RRRI is involved in milling
of paddy and produces raw and boiled rice. The firm started its
operations in June 2013. It has a milling unit at Jagannadhagiri
village in East Godavari district, Andhra Pradesh, with an
installed capacity of 8 MT of paddy per hour. In FY2020, on a
provisional basis, the firm reported a net profit of INR0.2 crore
on an operating income (OI) of INR62.8 crore compared to a net
profit of INR0.2 crore on an OI of INR63.6 crore in the previous
year.
REALTIME TECHSOLUTIONS: ICRA Cuts Rating on INR25cr Loans to D
--------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Realtime
Techsolutions Pvt. Ltd. (RTTS), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term– 6.00 [ICRA]D; downgraded from
Cash Credit [ICRA]B- (Stable)
Short term– 3.00 [ICRA]D; downgraded from
Letter of Credit [ICRA]A4
Short term– 16.00 [ICRA]D; downgraded from
Bank Guarantee [ICRA]A4
Rationale
The ratings downgrade for RTTS is on account of devolvement of the
letter of credit (LC), which remained unpaid for more than 30 days,
as confirmed by the company. The delays were due to its stretched
receivables from the Defence customers and a tight liquidity
position.
Key rating drivers and their description
Credit strengths
NA
Credit challenges
* Delay in debt servicing: RTTS operates in a working capital
intensive environment on account of long payment cycles with the
Defence entities due to procedural delays. The delays in payment of
LC were because of stretched receivables, leading to constrained
cash flows and the current scenario of the Covid-19 pandemic.
Liquidity position: Poor
RTTS' liquidity position is poor because of delays in receipt of
payments from the Defence entities, resulting in high working
capital intensity. The liquidity is also impacted by the company's
seasonal cash flows, which are highly concentrated in third and
fourth quarters.
Rating sensitivities
Positive triggers – Regularisation of the account would lead to
an upgrade in the rating.
Negative triggers – NA
Established in 1998, Realtime Techsolutions Private Limited (RTTS)
is a niche player delivering end-to-end system integration and
software solutions for the Defence sector that requires extreme
levels of performance reliability and robustness. The company
combines system integration and software capabilities across
multiple platforms and operating systems to deliver a range of
products and subsystems designed and tested to perform under severe
conditions. The company is ISO-9001-2008 certified.
S.V.S CLASSIC: ICRA Lowers Rating on INR9cr LT Loan to B+
---------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of S.V.S
Classic Foods, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund 9.00 [ICRA]B+ (Stable) ISSUER NOT
Based–Cash Credit COOPERATING; Rating downgraded
from [ICRA]BB- (Stable) ISSUER
NOT COOPERATING and continues
to remain under Issuer Not
Cooperating' category
Long Term- (1.50) [ICRA]B+ (Stable) ISSUER NOT
Interchangeable COOPERATING; Rating downgraded
from [ICRA]BB- (Stable) ISSUER
NOT COOPERATING and continues
to remain under Issuer Not
Cooperating' category
Long Term- 0.10 [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
Short Term- 1.35 [ICRA]A4 ISSUER NOT
Fund Based COOPERATING; Rating continues
to remain under Issuer Not
Cooperating' category
Short Term- 0.10 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
to remain under Issuer Not
Cooperating' category
Rationale
The rating is downgraded because of lack of adequate information
regarding S.V.S Classic 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 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 S.V.S Classic 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 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.
S.V.S Classic Foods was established in 1991 as a partnership
trading firm based out of Salem in Tamil Nadu and deals in tapioca
based sago and starch. The firm was jointly promoted by the
promoter, Mr. V. Anbalagan and his brother, but in 2005, Mr. V.
Anbalagan and his family, took over the firm's operations. The
promoter has extensive experience for more than three decades in
the starch industry and has been actively involved in the day to
day operations of the company. Besides S.V.S Classic Foods, the
promoters have business interests in Varalakshmi Starch Industries
Private limited ("VSIPL"), a starch manufacturing unit based out of
Salem. VSIPL produces native tapioca starch, modified tapioca
starch maize starch and sago.
SAANVI CLOTHING: ICRA Moves B Debt Ratings to Not Cooperating
-------------------------------------------------------------
ICRA Ratings has migrated the rating on bank facilities of Saanvi
Clothing Pvt Ltd (SCPL) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund 8.00 [ICRA]B (Stable) ISSUER NOT
Based/CC COOPERATING; Rating Moved to
the 'Issuer Not Cooperating'
category
Long Term-Fund 1.88 [ICRA]B (Stable) ISSUER NOT
Based TL COOPERATING; Rating Moved to
the 'Issuer Not Cooperating'
category
Long Term/Short 0.12 [ICRA]B (Stable)/A4 ISSUER NOT
Term-Unallocated COOPERATING; Rating Moved to
the 'Issuer Not Cooperating'
category
ICRA has moved the Long term and Short-term ratings for the bank
facilities of SCPL to the 'Issuer Not Cooperating' category. The
rating is now 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
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.
Saanvi Industries was established as a proprietorship concern in
2016 with a manufacturing plant in Bangalore and an office in
Mumbai. It was incorporated as a private limited company, Saanvi
Clothing Pvt Ltd, with effect from April 1, 2019. It is a family
owned business with Mr. Dhiren Rathore and his wife Mrs. Jinal
Dhiren Rathore as directors. The manufacturing unit is jointly
owned by Jinal Dhiren Rathore and Khubilal Gulabchand Rathore in
their personal capacity. The company manufactures women's
innerwear under its own brand name, ENVIE, which began commercial
sales in October 2016 and has a pan-India presence. In FY2018, it
launched another brand, ENERVE, to tap modern trade channels like
D-Mart and Brand Factory. Misterio was launched as an initiative
for B2B sales and was registered with Reliance Jio in May 2019.
SCPL has more than 80 distributors across India and it recently
started a contract manufacturing business for some of the domestic
brands as well.
SAHARA CREDIT: Asked Either to Repay or Get Ready for Liquidation
-----------------------------------------------------------------
Indian Cooperative reports that the hearing on the matter of
Lucknow based Sahara Credit Cooperative Society in the court of
Central Registrar of Cooperative Societies took place through Video
Conferencing recently in which it was asked either to repay or get
ready for liquidation.
Hundreds of victims of Sahara Co-ops have written to everybody from
PM to CMs to RoCs for relief for many months now. Even Indian
Cooperative desk is flooded by such mails in dozens every day, the
report says.
During the hearing, the Chairman and representatives of the Society
had been directed to submit a credible plan for arranging the funds
for the society's regular functioning. In the case, the Management
failed to provide a clear path for continuation of the society then
the Authority would be left with no option but to initiate
proceedings under Section 86 of the Multistate Cooperative
Societies Act, 2002 which is related to winding up of multi state
cooperative societies," according to Indian Cooperative.
Those who were present during the hearing included, D V Srivastava,
Chairman, Karunesh Awasthi, MD, Samar Mandal, CA, Abhishekh Dua,
Advocate, Sahara Credit Cooperative Society. The next hearing on
the matter is fixed on Nov. 6, 2020, the report discloses.
According to the proceedings released from the office of Central
Registrar: "The Chairman and representatives of the society present
today through VC were asked about their capacity and plan to repay
the depositors.
The Chairman of the Society requested that he should be allowed to
function again as the Chairman as he has been duly elected this
year. The Chairman has also sought six months' time to set the
house in order", the details of the proceedings reveal.
Indian Cooperative says the order sheet signed by Vivek Aggarwal,
Central Registrar further reads, during the hearing, when asked
about the resolution plan as well as the method of building
confidence among the depositors, the representatives could not give
a satisfactory reply. It has been observed that in spite of the
repeated instructions of this Authority' the society has failed to
submit a plan for liquidation of its investment and bringing in the
funds to repay the depositors", according to the order sheet cited
by Indian Cooperative.
Besides, the Authority has issued a Letter to the Ministry of
Corporate Affairs for investigating the investments made in various
companies by this Cooperative society. Considering the present
scenario, it is very important that investigation be completed
quickly so that the trust of depositors can be safeguarded.
In the meantime, the prohibition order against the society for
taking any new deposits from the existing or new members shall
continue to operate, Indian Cooperative reports. It is further
directed that the Society cannot renew any deposits as well, and
shall make prompt payments to the depositors/members on the date of
maturity", the order sheet asserted.
In the order sheet it was mentioned that 34,000 complaints have
been received by this authority in the last 7-8 months, the report
adds.
SARATHA ELECTRO: ICRA Keeps B Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA said ratings for the INR10.00-crore bank facilities of Saratha
Electro Plater (SEP) continue to remain under Issuer Not
Cooperating' category'. The Long term ratings are denoted as
"[ICRA]B (Stable) ISSUER NOT COOPERATING" and Short term ratings
are denoted as "[ICRA]A4 ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term–Fund 1.50 [ICRA]B (Stable); ISSUER NOT
Based Cash COOPERATING; Rating Continues
Credit to remain under Issuer Not
Cooperating' category
Long Term-Fund 4.80 [ICRA]B (Stable); ISSUER NOT
Based Term Loan COOPERATING; Rating Continues
to remain under Issuer Not
Cooperating' category
Long Term/Short 3.70 [ICRA]B (Stable)/A4; ISSUER
Term Unallocated NOT COOPERATING; Rating
Continues to remain under
Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
Promoted in 1998 by Mr. K. Mahadevan, Saratha Electro Plater (SEP)
is a proprietorship firm specializing in Zinc and ZincNickel
Electroplating services.
SBC MINERALS: ICRA Lowers Rating on INR25cr LT Loan to B+
---------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of SBC
Minerals Private Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term–Fund 25.00 [ICRA]B+ (Stable), ISSUER NOT
Based–Cash Credit COOPERATING; Rating downgraded
from [ICRA]BB- (Stable) and
continues to remain in the
'ISSUER NOT COOPERATING'
Category
Rationale
The downgrade is because of lack of adequate information regarding
SBC Minerals 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 SBC Minerals Private Limited, ICRA has been trying to seek
information from the entity so as to monitor its performance, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 1, 2016, ICRA's Rating Committee has taken a rating
view based on the best available information.
Incorporated in 2004, SBC is a registered service provider with
Government entities like Coal India (MSTC Ltd. & Coal Junction).
The company is involved in trading coal. This apart, SBC's Logistic
Division takes care of the logistic part of the coal-trading
activity. The major operations of the company are handled by Mr.
Ravindra Aggarwal, who has over three decades of experience in the
coal-trading business.
SHREERAM AND SONS: ICRA Cuts Rating on INR3cr LT Loan to B+
-----------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Shreeram
and Sons (SAS), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- (3.00) [ICRA]B+ (Stable) ISSUER NOT
Fund Based COOPERATING; Rating downgraded
from [ICRA]BB (Stable) and
continues to be 'Issuer Not
Cooperating' category
Short Term– 15.00 [ICRA]A4 ISSUER NOT
Fund Based COOPERATING; Rating downgraded
from [ICRA]A4+ and continues
to be 'Issuer Not Cooperating'
category
Short Term- 1.00 [ICRA]A4 ISSUER NOT
Non-Fund Based COOPERATING; Rating downgraded
from [ICRA]A4+ and continues
to be 'Issuer Not Cooperating'
category
Rationale
The rating downgrade is because of lack of adequate information
regarding SAS 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 Shreeram and Sons, 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 2012, Shreeram and Sons (SAS) is an apparel
manufacturing firm, which caters to both the export and the
domestic markets. It manufactures and exports apparels to the US,
Korea and European countries. It specialises in manufacturing of
shirts and bottom wear for all age groups and for both men and
women. It procures fabric from customer-approved suppliers based in
India. It then partners with the client to design the product or
manufactures the same based on the specifications provided by the
customer.
SHYAM DESIGNS: ICRA Lowers Rating on INR10cr LT Loan to B+
----------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Shree
Shyam Designs Pvt. Ltd. (SSDPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term– 10.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based COOPERATING; Rating downgraded
from [ICRA]BB (Stable) and
moved to 'Issuer Not
Cooperating' category
Short Term– (10.00) [ICRA]A4 ISSUER NOT
Interchangeable COOPERATING; Rating downgraded
from [ICRA]A4+ and moved to
'Issuer Not Cooperating'
Category
Long Term/Short 15.00 [ICRA]B+(Stable)/A4 ISSUER NOT
Term Unallocated COOPERATING; Rating downgraded
limits from [ICRA]BB(Stable)/A4+ and
moved to 'Issuer Not
Cooperating' category
Rationale
The rating downgrade is because of lack of adequate information
regarding SSDPL 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 SSDPL, 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.
Shree Shyam Designs Private Limited (SSDPL) was established in 2007
by Mr. Mukesh Kumar and Mrs. Manju Devi, as its directors. It is an
ISO 9001:2008, ISO 14001:2008 and ISO 18001:2007 certified entity.
The company offers commercial interior decoration services. SSDPL's
clientele includes corporate firms like Amazon Development Centre
Pvt. Ltd., L&W Building Solutions, Devbhumi Realtors Pvt. Ltd.,
Vestian Global Workplace Services, etc. The head office of the
company is in Bengaluru, with branch offices in Telangana, Andhra
Pradesh, Tamil Nadu, Maharashtra, Kerala, Karnataka, Delhi, Haryana
and Uttar Pradesh.
SUBHLAXMI DYEING: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Subhlaxmi Dyeing and Printing Mills
Private Limited
Registered office:
412/B, GIDC Estate
Pandesara
Surat GJ 394221
IN
Insolvency Commencement Date: October 14, 2020
Court: National Company Law Tribunal, Surat Bench
Estimated date of closure of
insolvency resolution process: April 14, 2021
Insolvency professional: CA Kailash Thanmal Shah
Interim Resolution
Professional: CA Kailash Thanmal Shah
505, 21st Century Business Centre
Near World Trade Centre
Ring Road, Surat 395002
Mobile: 9824150365
E-mail: ipktshah@gmail.com
cirp.subhlaxmi@gmail.com
Last date for
submission of claims: October 31, 2020
SUDARSHAN INFRA: ICRA Moves B+ Debt Ratings to Not Cooperating
--------------------------------------------------------------
ICRA Ratings has migrated the rating on bank facilities of
Sudarshan Infra Projects Private Limited to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund 4.88 [ICRA]B+(Stable) ISSUER NOT
Based TL COOPERATING; Rating moved to
the 'Issuer Not Cooperating'
category
Long Term/Short 1.57 [ICRA]B+(Stable)/[ICRA]A4
Term–Unallocated ISSUER NOT COOPERATING;
Rating moved to the 'Issuer
Not Cooperating' category
ICRA has moved the long-term and short-term ratings for the bank
facilities of Sudarshan Infra Projects Private Limited to the
'Issuer Not Cooperating' category. The rating is now 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. 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.
Sudarshan Infra Projects Private Limited, constituted in 1981 as a
private limited company, started commercial operation of its
convention centre Vizag Conventions in August 2016. The convention
centre is located in Rushikonda, Vishakhapatnam, Andhra Pradesh
having seating capacity of 2,000 persons, parking space for 400
vehicles and has eight rooms in the facility. The company has set
up Comfort Rooms, a hotel, adjacent to Vizag Conventions having 30
rooms. The commercial operation of the hotel began in April 2019.
SWARAJ INDIA: Ind-Ra Affirms then Withdraws 'BB+' LT Issuer Rating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Swaraj India Agro
Limited's (SIAL) Long-Term Issuer Rating of 'IND BB+' and has
simultaneously withdrawn it.
The instrument-wise rating actions are:
-- INR650.0 mil. Fund-based limits* affirmed and withdrawn; and
-- INR1,484.3 bil. Term loans** due on October 2025 affirmed and
withdrawn.
*Affirmed at 'IND BB+/IND A4+' before being withdrawn
**Affirmed at 'IND BB+' before being withdrawn
KEY RATING DRIVERS
Liquidity Indicator - Stretched: SIAL's average peak utilization of
the fund-based limits continued to be high at 100% in the three
months ended September 2020. However, the total outside
liabilities/total net worth (unsecured debt is considered as quasi
equity as it is a subordinated debt) improved to 3.5x in FY20
(FY19: 5.6x, FY18: 5.6x) due to an increase in its preference
shares by INR240 million, and an unsecured loan of INR87.5 million
which was partially used to fund the capex. SIAL's operating cash
flow from operations surged to INR403 million in FY20 (FY19: INR185
million, FY18: negative INR819 million) owing to favorable changes
in working capital. The net working capital cycle improved to 451
days in FY20 (FY19: 525 days), due to a decrease in receivable
period to 31 days (48 days) and inventory holding period to 485
days (591 days). The management informed Ind-Ra that all cane
arrears of FY20 were repaid in March 2020. The company has
scheduled debt repayments of INR422.9 million in FY21. FY20 numbers
are provisional in nature.
The ratings also factor in the company's medium scale of
operations. Its revenue declined to INR1,969.80 million in FY20
(FY19: INR2,509.43 million) mainly on account of a delay in
commencement of crushing, which could only start from December 2019
due to unexpected rains during November and December 2019. This
resulted in a reduction in gross crushing period to 112 days in
sugar season (SS) 19-20 (SS 18-19: 138 days). As a result, the
total quantity of cane crushed also declined substantially to
2,50,000 metric tons (mt) in SS19-20 (SS18-19: 6,38,000mt), leading
to a decline in sugar production to 22,375mt from 67,934mt. SIAL's
non-sugar revenue increased to INR624 million in FY20 (FY19: INR503
million). Ind-Ra believes an improvement in the operational
performance resulting from an increase in crushing days, and an
increase in recovery rate of sugar will be key for revenue growth
in FY21.
SIAL's EBITDA margin remained modest with a return on capital
employed of 8% in FY20 (FY19: 7%). The margin improved to 27.4% in
FY20 (FY19: 21.5%) mainly on account of an increased proportion of
high-margin non-sugar revenue in the sales mix. Ind-Ra believes
that the company's ability to increase its high-margin non-sugar
revenue (especially ethanol) would drive the EBITDA margin in
FY21.
The ratings also remain constrained by SIAL's weak credit metrics.
Its leverage (adjusted gross debt/EBITDA continued to be high at
7.2x in FY20 (FY19: 7.1x; FY18: 9.2x), mainly on account of high
debt levels. SIAL's interest coverage (interest expenses/EBITDA)
deteriorated to 1.9x in FY20 (FY19: 2.3x).
However, the ratings continue to be supported by the promoter's
over two decades of experience in the agri-based industry.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no-objection certificate from the lenders. This is
consistent with the Securities and Exchange Board of India's
circular dated March 31, 2017 for credit rating agencies.
COMPANY PROFILE
Incorporated in 2010, SIAL manufactures sugar at its
fully-integrated facility located in Phaltan taluka of Satara
district of Maharashtra. It has a sugarcane crushing unit with a
daily capacity of 5,000 tons, a 19.50MW cogeneration unit and a
60,000 liters per day distillery unit.
THREE C SHELTERS: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: M/s. Three C Shelters Private Limited
Registered address:
C-23, Greater Kailash Enclave
Part-1, New Delhi 110048
Principal address:
Tech Boulevard, Central Block
Plot No. 6, Sector 127
Noida 201301
UP
Insolvency Commencement Date: October 16, 2020
Court: National Company Law Tribunal, Delhi Bench-IV
Estimated date of closure of
insolvency resolution process: April 14, 2021
Insolvency professional: Amarpal
Interim Resolution
Professional: Amarpal
C-2, Plot No. 50
Gyan Khand-2, Indirapuram
Ghaziabad, Uttar Pradesh 201014
E-mail: amarpal@icai.org
D-27, 3rd Floor
Dayanand Block, Gali No. 2
Near Reliance Fresh
Shakarpur, Delhi 110092
E-mail: cirp.3cshelters@gmail.com
- and -
The Insolvency and Bankruptcy
Board of India
7th Floor, Mayur Bhawan
Shankar Market, Connaught Circus
New Delhi 110001
Classes of creditors: Allotee under real estate project
Insolvency
Professionals
Representative of
Creditors in a class: Mr. Santosh Kumar
Mr. Sudhanshu Gupta
Mr. Yogesh Kumar Tyagi
Last date for
submission of claims: October 30, 2020
TIRUPATHI YARNTEX: ICRA Keeps B- Debt Ratings in Not Cooperating
----------------------------------------------------------------
ICRA said the ratings for the INR18.00-crore bank facilities of
Tirupathi Yarntex Spinners Private Limited (TYSPL) continue to
remain under Issuer Not Cooperating' category'. The Long term
ratings are denoted as "[ICRA]B- (Stable) ISSUER NOT COOPERATING"
and Short term ratings are denoted as "[ICRA]A4 ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term–Fund 14.50 [ICRA]B- (Stable); ISSUER NOT
Based-Cash Credit COOPERATING; Rating Continues
to remain under Issuer Not
Cooperating' category
Long Term–Fund 2.90 [ICRA]B- (Stable); ISSUER NOT
Based-Term Loan COOPERATING; Rating Continues
to remain under Issuer Not
Cooperating' category
Long Term–Non 0.60 [ICRA]B- (Stable); ISSUER NOT
Fund Based COOPERATING; Rating Continues
to remain under Issuer Not
Cooperating' category
Short Term– (1.50) [ICRA]A4; ISSUER NOT
Interchangeable COOPERATING; Rating Continues
to remain under Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
Tirupathi Yarntex Spinners Private Limited was established as a
proprietary concern and was converted into a private limited
company in 1996. At present, it is managed by Ms. Ramani Devi
(Managing Director) and her sons Mr. Alagar Raja and Mr. Krishnama
Raja. TYSPL manufactures 100% cotton yarn. The factory units are
present in Rajapalayam at two separate locations. Unit A has an
installed capacity of 19,080 spindles and Unit B is installed with
11,616 spindles. The company also owns a windmill with a capacity
of 850 KW.
TOPWORTH TOLLWAYS: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Topworth Tollways (Ujjain) Private Limited
Registered office:
308, 3rd floor, Ceejay House
Dr. A.B. Road, Worli
Mumbai 4000018
Maharashtra
Insolvency Commencement Date: October 9, 2020
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: April 7, 2021
(180 days from commencement)
Insolvency professional: Anuj Bajpai
Interim Resolution
Professional: Anuj Bajpai
Headway Resolution and Insolvency
Services Pvt. Ltd.
708, Raheja Centre
7th Floor, Nariman Point
Mumbai 400021
Maharashtra
E-mail: anuj19603@yahoo.co.in
cirpttu@gmail.com
Last date for
submission of claims: October 26, 2020
TRIDENT AUTO: Ind-Ra Moves BB+ LT Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Trident Auto
Components Private Limited's Long-Term Issuer Rating to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will now
appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR200 mil. Fund-based limits migrated to non-cooperating
category with IND BB+ (ISSUER NOT COOPERATING) / IND A4+
(ISSUER NOT COOPERATING) rating;
-- INR25 mil. Non-fund-based limits migrated to non-cooperating
category with IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR20 mil. Term loan due on April 2023 migrated to non-
cooperating category with IND BB+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
August 21, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 1997, Trident Auto Components is engaged in
fabrication of steel and assembly of steel structure, material
handling equipment, industrial process equipment, and heavy and
precise machine components and assemblies. The company caters
mainly to railways.
VEDANTA RESOURCES: S&P Affirms 'B-' ICR, Off CreditWatch Developing
-------------------------------------------------------------------
S&P Global Ratings affirmed its 'B-' long-term issuer credit rating
on Vedanta Resources and the 'B-' long-term issue rating on the
senior unsecured bonds the India-focused commodities conglomerate
issued or guaranteed. S&P removed the ratings from CreditWatch,
where it had placed them with developing implications on Aug. 11,
2020, ahead of the company's proposed privatization of Vedanta
Ltd.
At the same time, S&P withdrew the preliminary 'B' rating assigned
to the US$1.4 billion bond issued by Vedanta Holdings Mauritius II
Ltd. and guaranteed by Vedanta Resources. The bond has been
redeemed in accordance with terms upon the failure of the
privatization.
The failed privatization of Vedanta Ltd. has narrowed Vedanta
Resources' refinancing options. An inefficient corporate structure
remains Vedanta Resources' key credit weakness and rating driver.
The company's funding options would have improved if Vedanta Ltd.
had been privatized. Failure to do so has raised refinancing risk,
given large debt maturities coming due, especially in 2022. The
failed privatization has also interrupted the positive momentum
underpinning the Vedanta credit story, and fundraising has become
more challenging following the sell-off in bonds. Vedanta Resources
has liquidity to meet immediate debt maturities, given access to
cash at the subsidiary level. However, S&P views this as
unsustainable beyond a year because it would reduce the company's
consolidated cash materially. Improving funding access at Vedanta
Resources--the holding company--is, therefore, critical. The rating
on Vedanta Resources assumes the company will pursue options to
make its corporate structure more efficient, which would be
supportive of liquidity.
The rating also assumes no liability management exercises such as
below-par bond tenders or bond exchanges that we would consider as
a distressed exchange. S&P understands that management's immediate
focus remains on improving the company's capital structure and
liquidity issues.
S&P believes dividend payments and intercompany loans will be
adequate for debt servicing over the next 12 months. Vedanta
Resources faces debt maturities of about US$1.8 billion over the
next year. These include a US$414 million loan due in December and
a US$670 million bond due in June 2021. As of June 30, 2020,
Vedanta Resources reported consolidated cash of about US$4.2
billion at its subsidiaries, excluding a loan of about US$300
million from Cairn India Holdings Ltd. in the first quarter of
fiscal 2021 (year ending March 31, 2021). Cash at operating
subsidiaries should support the company's ability to meet debt
servicing at the holding company level over the next year, even
assuming no access to external funding. However, the significant
reduction in cash at the subsidiaries in this scenario would make
subsequent debt maturities, for example the US$1 billion bond due
in July 2022, more challenging.
Vedanta Ltd. has US$1.8 billion of debt maturities in fiscal 2022.
S&P does not consider this a big risk given proximity to cash flow
for lenders at the operating level and Vedanta Ltd.'s improving
operational performance.
Vedanta Resources' positive operational outlook also helps avert
immediate downgrade pressure. The company's earnings outlook is
more positive now than during our last review in August 2020.
Reported EBITDA in the first quarter of fiscal 2021 was around
US$530 million, which was impressive given challenging market
conditions in the immediate aftermath of the COVID-19 pandemic. S&P
said, "We now see material earnings upside from the aluminum and
zinc businesses, where silver has also emerged as a solid earnings
contributor. Accordingly, we have revised our EBITDA expectation
for fiscal 2021 to US$3.2 billion-US$3.6 billion, from US$2.6
billion-US$3.0 billion. We anticipate further upside in fiscal 2022
based on our commodity price expectations."
The failed privatization is also positive for consolidated
leverage, with about US$3.5 billion less debt, though it is
significantly negative for liquidity. S&P now sees leverage
declining steadily, with its adjusted debt-to-EBITDA ratio falling
to 4.25x-4.5x by March 2021 and further to 3.5x-3.75x by March
2022, from 5x as of March 31, 2020. Although such declines would
normally support a higher rating, they are currently overshadowed
by the weak liquidity position of the holding company.
The negative outlook reflects Vedanta Resources' tight liquidity
due to large debt maturities over the next few years. These debt
maturities are coming at a time when S&P believes the company's
funding access will be challenged. Vedanta Resources can meet debt
maturities over the next 12 months thanks to cash at its
subsidiaries, but its funding access remains restricted beyond a
year. The negative outlook also reflects limited room for error in
the next 12 months, such as a decline in earnings or cash flows
that are currently not included in its base case.
S&P said, "We could downgrade Vedanta Resources if the company's
liquidity at the holding company level does not improve over the
next few quarters. Evidence of regaining access to external funding
includes raising new bank debt or a decline in bond yields to more
normal levels. This, in turn, could depend on the company's ability
to address the weakness in its corporate structure and improve
access to cash flow at operating companies.
"While less likely, we could lower the ratings to 'SD' if the
company undertakes any liability management such as bond tenders or
exchange offers that will likely constitute a distressed exchange.
"We could revise the outlook to stable if Vedanta Resources
improves its liquidity at the holding company level by regaining
consistent access to external funding. This will likely require the
company to take measures to address its weak corporate structure."
VIJETA PROJECTS: ICRA Lowers Rating on INR80cr Loan to D
--------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Vijeta
Projects & Infrastructures Limited (VPIL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based- 80.00 [ICRA]D ISSUER NOT COOPERATING;
Working Capital Rating downgraded from
Facilities [ICRA]B-(Stable) and continues
in 'Issuer not cooperating
category'
Non-fund Based- 194.50 [ICRA]D ISSUER NOT COOPERATING;
Working Capital Rating downgraded from [ICRA]A4
Facilities and continues in 'Issuer not
cooperating category'
ICRA has downgraded the long-term rating for the INR274.50 crore,
fund-based and non-fund-based bank facilities of VPIL from [ICRA]B-
(stable) ISSUER NOT COOPERATING and [ICRA]A4 ISSUER NOT COOPERATING
to [ICRA]D ISSUER NOT COOPERATING and [ICRA]D ISSUER NOT
COOPERATING.
The rating downgrade factors in delays observed in debt servicing
by VPIL.
The rating is based on limited information on the entity's
performance since the time it was last rated in May 15, 2020. 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 Vijeta Projects &
Infrastructures Limited (VPIL), ICRA has been trying to seek
information from the entity so as to monitor its performance, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 1, 2016, ICRA's Rating Committee has taken a rating
view based on the best available information.
Established in 1990 by the Singh family, VPIL is a closely held
public limited company involved in executing infrastructure
projects across sectors like irrigation, roadways, railway
infrastructure, mining, etc. The company primarily works for
various government and semi-government bodies (Central Public Works
Department, Jharkhand State Mineral Development Corporation,
Department of Water Resources, National Buildings Construction
Corporation etc.) in Bihar and Jharkhand. In addition, VPIL works
for reputed private sector clients like L&T, Tata Power Ltd. etc.
In FY2019, the company reported a net profit of INR10.1 crore on an
operating income (OI) of INR322.0 crore compared with a net profit
of INR4.9 crore on an OI of INR203.9 crore in the previous year.
VIVEK STEELCO: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Vivek Steelco Private Limited
Registered office:
A-201 Mondeal Square
Nr. Prahlad Nagar Garden
Opposite Honest Restaurant
S.G. Highway Ahmedabad
Gujarat 380015
Insolvency Commencement Date: October 8, 2020
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: April 5, 2021
(180 days from commencement)
Insolvency professional: Trupalkumar Patel
Interim Resolution
Professional: Trupalkumar Patel
401-402, Narnarayan Palace
Nr. Kothawala Flats
Pritamnagar, Ellisbridge
Ahmedabad 380006
Tel: 079-40052410
E-mail: trupal.ca@gmail.com
trupal.ip@gmail.com
Last date for
submission of claims: October 28, 2020
=========
J A P A N
=========
J. FRONT RETAILING: Egan-Jones Lowers Sr. Unsecured Ratings to BB-
------------------------------------------------------------------
Egan-Jones Ratings Company, on October 16, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by J. Front Retailing Co. to BB- from BB.
Headquartered in Tokyo, Japan, J. Front Retailing Co., Ltd. is a
holding company established through the merger of Daimaru and
Matsuzakaya.
=========
M A C A U
=========
NEW COTAI: Court Enters Plan Confirmation Order
-----------------------------------------------
Judge Robert D. Drain has entered findings of fact, conclusions of
law and order confirming the Amended Joint Chapter 11 Plan of
Reorganization of New Cotai Holdings, LLC and its Debtor
Affiliates.
The Debtors have proposed the Plan (including the Plan Documents
and all other documents necessary or appropriate to effectuate the
Plan) in good faith with the legitimate and honest purpose of
maximizing the value of the Debtors' Estates, and not by any means
forbidden by law.
In determining that the Plan has been proposed in good faith, the
Court has examined the totality of the circumstances surrounding
the filing of the Chapter 11 Cases and the formulation of the Plan.
The Debtors' good faith is evident from the facts and record of the
Chapter 11 Cases, including the retention of Mr. Brecker to serve
as an independent fiduciary of the Debtors, the retention of Mr.
Wall and DLA Piper in connection with the Investigation, the mutual
decision among the Debtors' key stakeholders to resolve the IPO
claims, the negotiation and execution of the Plan Support Agreement
by holders of more than 99% of the Debtors' funded debt, the
adequacy of the disclosures contained in the Disclosure Statement,
the Debtors' efforts to ensure that all opportunities to
participate in significant transactions during these Chapter 11
Cases were fair and inclusive, the Confirmation Declarations, and
the record of the Confirmation Hearing.
The Plan was the product of extensive negotiations conducted at
arm's length among the Debtors, Silver Point, and the Consenting
Noteholders. Accordingly, the requirements of section 1129(a)(3) of
the Bankruptcy Code are satisfied.
A full-text copy of the order dated August 27, 2020, is available
at https://tinyurl.com/y374t66p from PacerMonitor.com at no
charge.
About New Cotai Holdings
New Cotai Holdings, LLC, and certain of its affiliates were formed
for the purpose of investing in what is now Studio City
International Holdings Limited. Studio City International, together
with its subsidiaries, owns the Studio City project, an integrated
resort comprising entertainment, retail, hotel and gaming
facilities located in the Macau Special Administrative Region of
the People's Republic of China. Affiliates of investment funds
managed by Silver Point Capital, L.P. own a direct or indirect
controlling interest in each of the Debtors. The Debtors have no
employees.
New Cotai Holdings and four affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case
No.19-22911) on May 1, 2019. The petitions were signed by David
Reganato, authorized signatory. The cases are assigned to Judge
Robert D. Drain. At the time of filing, New Cotai was estimated to
have $100 million to $500 million in assets and $500 million to $1
billion in liabilities.
The Debtors tapped Skadden, Arps, Slate, Meagher & Flom LLP, as
counsel; Houlihan Lokey Capital, Inc., as financial advisor; and
Prime Clerk LLC, as noticing, claims and balloting agent.
NEW COTAI: Noteholders Get 97% of Equity in Plan
------------------------------------------------
Daniel Hill of Bloomberg Law reports that New Cotai Holdings LLC, a
bankrupt casino investment vehicle controlled by hedge fund Silver
Point Capital LLC, won approval of its reorganization plan that
swaps debt for equity.
The holders of notes worth a total of the $856 million will receive
97% of the equity in the company emerging from bankruptcy,
according to the plan. The other 3% will go to current equity
holders of New Cotai, which was created to hold an equity interest
in Macau casino operator Studio City International Holdings Ltd.
Pre-bankruptcy funded debt of $856.5 million will be canceled under
the plan.
About New Cotai Holdings
New Cotai Holdings, LLC, and certain of its affiliates were formed
for the purpose of investing in what is now Studio City
International Holdings Limited. Studio City International, together
with its subsidiaries, owns the Studio City project, an integrated
resort comprising entertainment, retail, hotel and gaming
facilities located in the Macau Special Administrative Region of
the People's Republic of China. Affiliates of investment funds
managed by Silver Point Capital, L.P. own a direct or indirect
controlling interest in each of the Debtors. The Debtors have no
employees.
New Cotai Holdings and four affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case
No.19-22911) on May 1, 2019. The petitions were signed by David
Reganato, authorized signatory. The cases are assigned to Judge
Robert D. Drain. At the time of filing, New Cotai was estimated to
have $100 million to $500 million in assets and $500 million to $1
billion in liabilities.
The Debtors tapped Skadden, Arps, Slate, Meagher & Flom LLP, as
counsel; Houlihan Lokey Capital, Inc., as financial advisor; and
Prime Clerk LLC, as noticing, claims and balloting agent.
=====================
N E W Z E A L A N D
=====================
FLIGHT CENTRE NZ: Cuts Another 160 Jobs, To Close 23 More Stores
----------------------------------------------------------------
Radio New Zealand reports that Flight Centre NZ, a wholly-owned
division of the Flight Centre Travel Group, will axe a further 160
staff and close 23 more stores due to the ongoing impacts of
Covid-19.
RNZ says details have just come to light that the travel bookings
company is undergoing another restructure, after already cutting
about 600 jobs and closing about 70 stores earlier this year.
Its managing director, David Coombes, told customers in an email on
Oct. 19 the cuts reflected the lack of available work for people in
its stores at the moment as borders remained closed to
international tourism, RNZ relays.
"We are gutted to again be reducing our team and farewelling a
large number of talented and passionate people from our business.
Our people are at the core of who we are, so this is of course,
heartbreaking," the report quotes Mr. Coombes as saying. "Our
people were offered, and a number accepted, voluntary redundancy."
RNZ relates that Mr. Coombes said he was confident the business
would survive the pandemic.
"These decisions, however difficult, are made to do just that so we
can continue to support our customers through the impact of
Covid-19.
"As borders remain closed we have been forced to make this
difficult decision to ensure our business stays viable, protecting
our customers' refunds and credits, and then opening up the world
for Kiwis as border restrictions lift."
According to RNZ, Flight Centre was one of the companies to benefit
from the government's NZD47.6 million travel reimbursement scheme,
as almost NZD700 million in travel expenditure was locked up
overseas because trips were cancelled due to the coronavirus.
It had also received NZD11.1 million in wage subsidies from the
government, RNZ notes.
Flight Centre Ltd. -- http://www.flightcentre.com/-- is an
Australia-based company engaged in travel retailing in both the
leisure and corporate travel sectors, plus in-destination travel
experience businesses, including tour operators, hotel management,
destination management companies (DMCs) and wholesaling.
SNAKK MEDIA: Removed from Liquidation by Reverse Takeover Expert
----------------------------------------------------------------
Catherine Harris at Stuff.co.nz reports that listed mobile
advertising company Snakk Media is being removed from liquidation
by a specialist in reverse takeovers.
Snakk, which is owed about NZD4 million by its Australian
subsidiary, has been taken over by corporate lawyer Sean Joyce who
intends to restore it to the NZX's main board, Stuff relays.
According to Stuff, Snakk's liquidator, Gareth Hoole of Ecovis KGA,
said the deal was likely to result in a better outcome for
shareholders than their current situation.
Stuff relates that Mr. Joyce said he had bought the company's third
party debt and become one of its creditors.
He expected to become a director and form a new board, which would
then look to acquire a company and fold it into Snakk's listing.
Mr. Joyce said he had been involved in about a dozen "backdoor
listings," including the recently listed MeToday (formerly the CSM
Group) and Plexure (formerly Valet Capital).
He said Kiwis could be quite sceptical of reverse takeovers. But
they had a number of advantages over sharemarket floats, including
speed and cost, and they also overcame many of the market
"vagaries" of an IPO.
"There are a lot of opportunities at the moment, especially with
the Covid environment for some good quality companies that require
capitalisation."
About Snakk Media
Snakk Media was founded in 2010 by Andrew Jacobs and Kiwi tech
start-up founders, Derek and Geoffrey Handley, who founded
successful mobile advertising company, The Hyperfactory, according
to Stuff.
It listed on the NZX's alternative market in 2013, raising NZD6.5
million from shareholders, and at one stage its collective share
value or market capitalisation was NZD31.8 million.
But the company struck plenty of competition and went into
administration in February last year. Its share price is unchanged
since November 2018 at 5.5 cents, Stuff notes.
Derek Handley stepped down as director in 2015.
Snakk's last financial report for the year ended March 2018 said it
made a net loss of just under NZD267,000, an improvement from a
loss of NZD3.2 million the year before, Stuff discloses.
=================
S I N G A P O R E
=================
NEW SILKROUTES: Taps Darrell Lim as Acting Non-Executive Chairman
-----------------------------------------------------------------
Vivien Shiao at The Business Times reports that New Silkroutes
Group announced the appointment of Darrell Lim Chee Lek as acting
independent non-executive chairman of the board with effect from
Oct. 20.
He replaces former chairman Goh Jin Hian, the son of former
Singapore prime minister Goh Chok Tong, who resigned amid
investigations by the Commercial Affairs Department (CAD) earlier
this month, BT says.
BT relates that Mr. Lim was appointed to the board of New
Silkroutes on Aug. 1, 2020 as an independent, non-executive
director, and became lead independent director this month. As at
late July he was listed as the executive board director of BRC
Asia, co-founder of hedge fund Bright Point Capital and
non-executive director of XM Studios. He was formerly the head of
investor relations at the Singapore Exchange.
Other members of the board include Shen Yuyun, who is executive
director, Vivien Chen Chou Mei Mei as independent non-executive
director, Andrew Chua Soon Kian as non-independent non-executive
director and Alex Chua Siong Kiat as independent non-executive
director, BT discloses.
On Sept. 30, the company disclosed that Dr. Goh and then-finance
director William Teo Thiam Chuan were being investigated by the CAD
over a possible offence under the Securities and Futures Act.
BT relates that New Silkroutes said then that it understood that
the alleged offence was false trading and market rigging to do with
past share buy-backs and share acquisitions.
Mr. Teo has also since quit the company, the report notes. Another
director who has recently left New Silkroutes is Kelvyn Oo, where
he had been executive director and chief corporate officer until he
stepped down on Aug 1. He is also assisting with the CAD probe.
About New Silkroutes
Based in Singapore, New Silkroutes Group Limited (SGX:BMT) --
http://www.newsilkroutes.org/-- is an investment holding company
focused on healthcare and energy. The Company owns and operates
primary care medical and dental facilities in Singapore and
Vietnam, as well as pharmacy management systems in Singapore and
China. New Silkroutes's energy division is involved in physical oil
trades in SEA and North Asia.
===============
T H A I L A N D
===============
[*] THAILAND: Panel to Monitor Debt Restructuring of SMEs
---------------------------------------------------------
Bangkok Post reports that the Joint Standing Committee on Commerce,
Industry and Banking (JSCCIB) will spend three months monitoring
the debt restructuring progress of small and medium-sized
enterprises (SMEs), on a case-by-case basis, after the Bank of
Thailand's debt relief measures in the second phase expire today,
Oct. 22.
Though the central bank will not prolong debt relief measures, the
regulator encourages financial institutions to help borrowers who
cannot pay debt normally to enter debt restructuring, Bangkok Post
says.
Bangkok Post relates that commercial banks can offer debt
restructuring to customers through several methods in line with
their repayment capability. These include a grace period for
interest and principal payment, interest rate cuts, debt instalment
period extension and a lower debt instalment per month.
"We are satisfied with the financial assistance helping borrowers
overcoming this difficult situation," the report quotes Supant
Mongkolsuthree, chairman of the Federation of Thai Industries
(FTI), said after yesterday's JSCCIB meeting, as saying.
Entrepreneurs who want more time to pay their debts are required to
contact financial institutions, which will consider the requests on
a case-by-case basis, the report notes.
"We'll evaluate the outcome after three months," Mr. Supant said.
According to Bangkok Post, the Bank of Thailand is concentrated on
targeted policies helping SME business operators after the
second-phase debt relief measures expire tomorrow, rather than the
existing blanket policies.
The report says the value of debtors receiving debt relief measures
in the formal banking system totals THB6.89 trillion, with THB1.35
trillion attributed to SME loans across 1.05 million accounts.
Bangkok Post relates that Payong Srivanich, chairman of the Thai
Bankers' Association (TBA), said 80,000 SME debtors accounting for
6% of total outstanding debt have "lost contact" with financial
institutions, which are trying to draw them back into the system.
About 10% want to continue debt relief measures. Banks will
consider helping them with debt restructuring on a case-by-case
basis, the report relays.
For debtors who are given more time to pay, the additional period
must not exceed six months from the end of this year, Mr. Payong
said.
"Many businesses facing financial woes are in the tourism sector,
especially the hotel business," Mr. Supant said.
According to the report, Mr. Payong said two other groups of
debtors are in a better situation. Up to 60% can pay back, while
20% can resume business but not fully recover and want financial
institutions to adjust the debt structure based on repayment
ability.
The report adds that the JSCCIB on Oct. 20 also raised concern over
the ongoing political conflict after foreign business people said
they were increasingly worried about safety issues and a possible
unpleasant impact on business.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2020. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***