/raid1/www/Hosts/bankrupt/TCRAP_Public/210128.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, January 28, 2021, Vol. 24, No. 15
Headlines
A U S T R A L I A
ACN 101 045 505: Second Creditors' Meeting Set for Feb. 4
AMPLIFY FINCO: Moody's Completes Review, Retains B2 Rating
P. & K. WEATHERBURN: Second Creditors' Meeting Set for Feb. 4
PARADIGM RESOURCES: First Creditors' Meeting Set for Feb. 4
SPEEDCAST INT'L: Chapter 11 Exit Okayed With Centerbridge as Owner
C H I N A
BAOSHANG BANK: Three More Ex-Regulators Expelled for Corruption
CHINA SCE: Moody's Assigns B2 Rating to New Unsecured USD Notes
CHINA: May Bar New Borrowing by High-Debt, High-Risk LGFVs
GUANGZHOU R&F: To Sell $500 Million of Junk Bonds to Retire Debt
SEAZEN GROUP: Moody's Gives Ba2 Rating to New USD Notes
TD HOLDINGS: Signs $40MM Stock Purchase Deal with White Lion
ZHENRO PROPERTIES: Moody's Gives B2 Rating to New Unsec. USD Notes
[*] CHINA: Central Bank Won't Exit Prematurely from Stimulus
H O N G K O N G
SPI ENERGY: Unit to Collaborate with Icona on E-Vehicle Designs
I N D I A
AAJVETO MANUFACTURING: ICRA Reaffirms B+ Rating on INR11.5cr Loan
ADVANTAGE COMPUTERS: ICRA Keeps B+ Ratings in Not Cooperating
BHAVANI COTEX: ICRA Keeps B+ Debt Ratings in Not Cooperating
BULKTAINER SHIPPING: ICRA Keeps B+ Ratings in Not Cooperating
CHINTAMANI GEMS: ICRA Keeps D Debt Rating in Not Cooperating
DAAJ HOTELS: ICRA Keeps D Debt Rating in Not Cooperating
DAIRY TALES: ICRA Hikes Rating on INR19.75cr Term Loan to B+
ELITE SHELTERS: ICRA Keeps B+ Debt Ratings in Not Cooperating
GRUHAM EXOTICA: ICRA Keeps B+ Debt Rating in Not Cooperating
IL&FS LTD: Addresses Nearly INR32,000cr of Debt as of December
KAYGEE SHOETECH: Insolvency Resolution Process Case Summary
KK LEISURES: ICRA Keeps B- Debt Ratings in Not Cooperating
MARUTI NOUVEAUKNITS: ICRA Keeps D Debt Ratings in Not Cooperating
MARUTI PAPERS: ICRA Withdraws B+ Rating on INR8.51cr Term Loan
P N RAO: ICRA Downgrades Rating on INR6.0cr LT Loan to B+
PRAMUKH COPPER: ICRA Keeps D Debt Ratings in Not Cooperating
PREMIER INDUSTRIAL: ICRA Keeps B+ Debt Ratings in Not Cooperating
RAJESH CONSTRUCTION: ICRA Keeps B+ Ratings in Not Cooperating
RS MOTORS: ICRA Keeps B+ Debt Rating in Not Cooperating Category
S&J GRANULATE: ICRA Keeps D Debt Rating in Not Cooperating
SAMDARIYA ABHUSHAN: ICRA Keeps B+ Debt Ratings in Not Cooperating
SAPTARISHI HOTELS: Insolvency Resolution Process Case Summary
SATISH CHAND: ICRA Keeps B+ Debt Rating in Not Cooperating
SHANTI INTEGRATED: ICRA Keeps B Debt Rating in Not Cooperating
SHIVAY MINERALS: ICRA Keeps B Debt Ratings in Not Cooperating
SHOBHA CARDS: Insolvency Resolution Process Case Summary
SPARRON VITRIFIED: ICRA Keeps B+ Debt Ratings in Not Cooperating
TRINITY MAHALASA: ICRA Keeps B+ Debt Rating in Not Cooperating
[*] INDIA: Over 50% of Real Estate Cases Under IBC Closed in 2020
J A P A N
SOFTBANK GROUP: S&P Alters Outlook to Stable, Affirms 'BB+' ICR
M A L A Y S I A
1MDB: Goldman Sachs CEO Gets US$10MM Pay Cut Over Bank Scandal
N E W Z E A L A N D
TITAN ACQUISITIONCO: Moody's Completes Review, Retains B2 Rating
P H I L I P P I N E S
PHILIPPINES: Economic Recovery Hinges on Kids Leaving Lockdown
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A U S T R A L I A
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ACN 101 045 505: Second Creditors' Meeting Set for Feb. 4
---------------------------------------------------------
A second meeting of creditors in the proceedings of:
- ACN 101 045 505 PTY LTD (FORMERLY MAGNIFY MEDIA PTY LTD)
- ACN 114 762 622 PTY LTD (FORMERLY MAGNIFY PRINT PTY LTD)
- ACN 101 047 303 PTY LTD (FORMERLY DUPLOCK ENTERPRISES PTY LTD)
has been set for Feb. 4, 2021, at 11:00 a.m. via electronic
facilities.
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 Feb. 2, 2021, at 5:00 p.m.
Sam Kaso and Glenn Spooner of Cor Cordis were appointed as
administrators of ACN 101 045 505 Pty on Dec. 18, 2020.
AMPLIFY FINCO: Moody's Completes Review, Retains B2 Rating
----------------------------------------------------------
Moody's Investors Service has completed a periodic review of the
ratings of Amplify Finco Pty Limited and other ratings that are
associated with the same analytical unit. The review was conducted
through a portfolio review discussion held on January 19, 2021 in
which Moody's reassessed the appropriateness of the ratings in the
context of the relevant principal methodology(ies), recent
developments, and a comparison of the financial and operating
profile to similarly rated peers. The review did not involve a
rating committee. Since January 1, 2019, Moody's practice has been
to issue a press release following each periodic review to announce
its completion.
This publication does not announce a credit rating action and is
not an indication of whether or not a credit rating action is
likely in the near future. Credit ratings and outlook/review status
cannot be changed in a portfolio review and hence are not impacted
by this announcement.
Key rating considerations.
Amplify Finco Pty Limited's B2 rating reflects its position as the
leading integrated live entertainment company in Australia and New
Zealand, operating across ticketing, live entertainment promotion,
data analytics and digital marketing. Its market position in its
key ticketing business is supported by exclusive ticketing service
agreements with the largest venues in Australia, its solid
ticketing capability, as well as event pipeline generation through
its live entertainment promotion business.
The rating is constrained by the significant negative impact of
COVID on live events, although Australia's success in containing
COVID should enable an earlier recovery. The rating is also
constrained by the company's high financial leverage, the
likelihood of acquisitions, and the discretionary nature of live
events.
The principal methodology used for this review was Business and
Consumer Service Industry published in October 2016.
P. & K. WEATHERBURN: Second Creditors' Meeting Set for Feb. 4
-------------------------------------------------------------
A second meeting of creditors in the proceedings of P. & K.
Weatherburn Heavy Machinery Repairs Pty. Limited has been set for
Feb. 4, 2021, at 10:30 a.m. via teleconference 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 Feb. 3, 2021, at 4:00 p.m.
Andrew Blundell of Worrells Solvency & Forensic Accountants was
appointed as administrator of P. & K. Weatherburn on Dec. 21, 2020.
PARADIGM RESOURCES: First Creditors' Meeting Set for Feb. 4
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Paradigm
Resources Pty Ltd will be held on Feb. 4, 2021, at 9:30 a.m. via
webinar facilities.
Said Jahani and John McInerney of Grant Thornton Australia Limited
were appointed as administrators of Paradigm Resources on Jan. 25,
2021.
SPEEDCAST INT'L: Chapter 11 Exit Okayed With Centerbridge as Owner
------------------------------------------------------------------
Steven Church of Bloomberg News reports that SpeedCast
International won court permission to exit bankruptcy under the
ownership of Centerbridge Partners after the companies struck a
deal with Black Diamond Capital Management to end a weeks-long
court battle over how to reorganize the satellite communications
company.
Under the settlement, Black Diamond will sell most of its SpeedCast
interests to Centerbridge, including $263 million in term loan
principal for $63.2 million, and a $37.2 million position in a
revolving loan for $8.5 million, according to a court filing. Black
Diamond will also get a so-called settlement payment that was not
made public.
About SpeedCast International
Headquartered in New South Wales, Australia, SpeedCast
International Limited and its affiliates provide remote and
offshore satellite communications and information technology
services. SpeedCast's fully-managed service is delivered to more
than 2,000 customers in 140 countries via a global, multi-access
technology, multi-band, and multi-orbit network of more than 80
satellites and an interconnecting global terrestrial network,
bolstered by on-the-ground local upport from more than 40
countries. Speedcast services customers in sectors such as
commercial maritime, cruise, energy, mining, government, NGOs,
enterprise, and media.
SpeedCast International and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No.
20-32243) on April 23, 2020. At the time of the filing, the Debtors
each had estimated assets of between $500 million and $1 billion
and liabilities of the same range.
Judge David R. Jones oversees the cases.
Speedcast is advised by Weil, Gotshal & Manges LLP as global legal
counsel and Herbert Smith Freehills as co-counsel. Michael Healy of
FTI Consulting, Inc. is Speedcast's Chief Restructuring Officer,
and FTI Consulting, Inc. is Speedcast's financial and operational
advisor. Moelis Australia Advisory Pty Ltd and Moelis & Company LLC
are Speedcast's investment bankers. KCC is Speedcast's claims and
noticing agent.
The Office of the U.S. Trustee appointed a committee to represent
unsecured creditors in Debtors' bankruptcy cases. The committee is
represented by Hogan Lovells US, LLP.
On August 13, 2020, the Debtor received a $395 million equity
commitment from Centerbridge Partners, L.P. and its affiliates, one
of its largest lenders.
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C H I N A
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BAOSHANG BANK: Three More Ex-Regulators Expelled for Corruption
---------------------------------------------------------------
Wu Xiaomeng and Tang Ziyi at Caixin Global report that three
retired former banking regulators in North China's Inner Mongolia
autonomous region have been expelled from the Communist Party on
suspicion of corruption in connection with Baoshang Bank Co. Ltd.,
the failed lender undergoing bankruptcy proceedings.
Xue Jining, who was head of the Inner Mongolia branch of the
now-defunct China Banking Regulatory Commission (CBRC) from 2007 to
2014 before retiring in 2015, was expelled from the party,
according to a statement released by the country's top antigraft
watchdog, the Central Commission for Discipline Inspection, on Jan.
25, Caixin relays.
Chen Zhitao, who was a deputy director of the local banking
regulator from 2004 to 2011 and retired in 2013, and Song Jianji, a
deputy director from 2004 to 2014 before retiring in 2017, have
also been expelled, Caixin discloses citing statements released by
the watchdog.
About Baoshang Bank
Baoshang Bank Co., Ltd. provides various commercial banking
products services to individuals and corporate customers in China.
In May 2019, China's financial regulators took control of the small
private bank as part of authorities' efforts to break up fallen
tycoon Xiao Jianhua's business empire and contain financial risks.
The People's Bank of China (PBOC) and China Banking and Insurance
Regulatory Commission (CBIRC) announced on May 24, 2019, the
takeover of Baoshang Bank Co. for a year. The rare takeover came
two years after Xiao, the billionaire founder of conglomerate
Tomorrow Holding Group, went missing from a luxury Hong Kong hotel.
He is reportedly to have been placed under graft investigation by
Chinese authorities. The regulators said the takeover reflects the
"severe credit risk" the bank poses and is intended to protect the
interests of the bank's depositors and other clients.
On Nov. 23, the China Banking and Insurance Regulatory Commission
gave its formal approval for Baoshang Bank to start bankruptcy
proceedings and asked the bank to report any major issues uncovered
during the process, according to Caixin.
CHINA SCE: Moody's Assigns B2 Rating to New Unsecured USD Notes
---------------------------------------------------------------
Moody's Investors Service has assigned a B2 rating to China SCE
Group Holdings Limited's (B1 stable) proposed senior unsecured USD
notes.
China SCE plans to use the proceeds from the proposed notes to
refinance its existing offshore debt.
RATINGS RATIONALE
"China SCE's B1 corporate family rating reflects its (1) long
operating record and growing operating scale; (2) diversified
geographic coverage and well-located land bank; and (3) good
liquidity and long track record of access to both onshore and
offshore funding," says Danny Chan, a Moody's Assistant Vice
President and Analyst.
"However, the company's credit profile is constrained by its
moderate debt leverage associated with its fast expansion and
growing investment property portfolio, as well as its increased
exposure to joint ventures (JVs)," adds Chan.
The proposed issuance will improve China SCE's liquidity profile
and will not materially affect its credit metrics, because the
company will use the proceeds to refinance existing debt.
Moody's expects China SCE's revenue/adjusted debt to improve mildly
to around 51%-58% in 2021 and 2022 from around 49% for the 12
months to June 2020 and 43% in 2019, because expected revenue
growth will more than offset the expected increase in debt and
financial guarantees to JVs.
Likewise, Moody's expects the company's interest coverage, as
measured by adjusted EBIT/interest, to improve to around 2.6x-3.1x
in 2021 and 2022 from 2.4x for the 12 months ended June 2020, as
revenue and EBIT growth will outpace growth in interest expenses,
despite an expected margin decline to around 25% from 27% during
the same period.
China SCE's contracted sales increased 26.1% to RMB101.5 billion in
2020 from a year ago amid the coronavirus outbreak, following
robust 56% year-on-year growth to RMB80.5 billion for the full year
2019. Moody's expects China SCE's contracted sales to grow about
15% year-on-year in 2021, supported by good sales execution
abilities and its ample salable resources in tier 2 and strong tier
3 cities in China.
China SCE's B2 senior unsecured bond rating is one notch below its
CFR because of the risk of structural subordination. This
subordination risk reflects the fact that the majority of claims
are at the operating subsidiaries and have priority over claims at
the holding company in a bankruptcy scenario. In addition, the
holding company lacks significant mitigating factors for structural
subordination. As a result, the expected recovery rate for claims
at the holding company will be lower.
China SCE's liquidity is good. The company's cash-on-hand of
RMB25.0 billion as of 30 June 2020 covered around 121% of its
short-term debt of RMB20.7 billion. Moody's expects its cash
holdings and operating cash flow will be sufficient to cover its
maturing debt, committed land premiums and dividend payments in the
next 12-18 months.
In terms of environmental, social and governance (ESG) factors,
Moody's has considered the company's concentrated ownership by its
controlling shareholder, Mr. Wong Chiu Yeung, who held a 50.40%
stake in the company at June 30, 2020.
The risk of concentrated ownership is mitigated by (1) the presence
of three independent nonexecutive directors on the board, who also
chair the audit and remuneration committees; (2) its moderate
20%-25% dividend payout ratio over the past three years; and (3)
the presence of other internal governance structures and standards
as required under the Corporate Governance Code for companies
listed on the Hong Kong Stock Exchange.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
The stable outlook on China SCE's B1 CFR reflects Moody's
expectation that the company will maintain revenue growth and
exercise prudence in its land acquisitions and debt management over
the next 12-18 months while maintaining healthy liquidity.
Moody's could upgrade China SCE's ratings if it demonstrates stable
sales growth and increases its scale, maintains its prudent
approach to land acquisitions, and maintains adjusted EBIT/interest
coverage in excess of 3.0x and revenue/adjusted debt in excess of
75%-80% on a sustained basis.
On the other hand, China SCE's ratings could be downgraded if (1)
its contracted sales weaken; (2) its profit margins decline
significantly; (3) its liquidity becomes impaired, such that
cash/short-term debt falls below 1.0x; or (4) its debt leverage
increases materially.
Credit metrics indicative of a rating downgrade include adjusted
EBIT/interest coverage below 2.0x and revenue/adjusted debt below
60% on a sustained basis.
The principal methodology used in this rating was Homebuilding And
Property Development Industry published in January 2018.
Founded in 1996, China SCE Group Holdings Limited listed on the
Hong Kong Stock Exchange in February 2010. It was 50.40% owned by
its chairman, Mr. Wong Chiu Yeung, as of June 30, 2020.
As of June 30, 2020, the company had a total land bank of around
33.03 million square meters (sqm) in terms of gross floor area
(GFA), with nationwide coverage in different tiers of cities across
different regions in China.
CHINA: May Bar New Borrowing by High-Debt, High-Risk LGFVs
----------------------------------------------------------
Zhang Yuzhe and Denise Jia at Caixin Global report that China's
regulators are reviewing local government financing vehicles
(LGFVs) and will ban those with the highest hidden debt risk from
issuing new debt unless it's for repaying old debt, according to
several people close to regulators.
The guidelines initially will apply to LGFV debt sold on two stock
exchanges and are expected to eventually apply to the interbank
bond market, which is regulated by the National Association of
Financial Market Institutional Investors (NAFMII) and accounts for
90% of the trading volume of onshore debt, Caixin learned.
The interbank bond market hasn't implemented the new guidelines
partly because sentiment hasn't fully recovered from the impact of
a series of bond defaults by state-owned enterprises, Caixin
learned. Those shocks included the CNY1 billion ($154 million) bond
default by coal mine operator Yongcheng Coal and Electricity
Holding Group Co. Ltd. in November that set off a chain reaction in
the bond market, the report relates.
GUANGZHOU R&F: To Sell $500 Million of Junk Bonds to Retire Debt
----------------------------------------------------------------
Wang Jing, Li Yuan and Han Wei at Caixin Global report that
Guangzhou R&F Properties Co. Ltd. plans to borrow $500 million by
selling high-yield junk bonds abroad to retire old debts as the
company faces imminent repayment pressures.
Caixin relates that Hong Kong-listed R&F Properties' Easy Tactic
Ltd. unit will sell two-year notes with an annual yield of 11.75%,
the company said Jan. 26. Proceeds will be used to repay R&F
Properties' debts due within one year, the report notes.
Guangzhou R&F Properties Co., Ltd. operates real estate businesses.
The Company provides housing renovation, housing loans, real estate
brokerage, property management, and other services. Guangzhou R&F
Properties also operates hotel management.
As reported in the Troubled Company Reporter-Asia Pacific on Jan.
26, 2021, Fitch Ratings has assigned China-based property developer
Guangzhou R&F Properties Co. Ltd.'s (B+/Negative) proposed
US-dollar senior notes a 'B+' rating with a Recovery Rating of
'RR4'.
The proposed notes will be issued by Easy Tactic Limited, a wholly
owned subsidiary of R&F Properties (HK) Company Limited (RFHK;
B+/Negative), which is in turn a subsidiary of Guangzhou R&F. The
proposed notes' rating aligns with the rating of RFHK, which
provides the notes with an unconditional and irrevocable guarantee.
Meanwhile, Guangzhou R&F provides credit support to the notes via a
keepwell deed and deed of equity interest purchase and investment
undertaking. Guangzhou R&F intends to use the net proceeds to
refinance medium- to long-term debt due within one year.
SEAZEN GROUP: Moody's Gives Ba2 Rating to New USD Notes
-------------------------------------------------------
Moody's Investors Service has assigned a Ba2 senior unsecured
rating to the proposed USD notes to be issued by New Metro Global
Limited and guaranteed by Seazen Group Limited (Ba1 stable).
New Metro is a wholly-owned subsidiary of Seazen Holdings Co., Ltd.
(Ba1 stable), which in turn is a 67.2%-owned subsidiary of Seazen
Group.
Seazen Group will use the proceeds of the notes mainly to repay its
offshore debt.
RATINGS RATIONALE
"The proposed issuance will extend Seazen Group's debt maturity
profile without materially affecting its financial profile, as the
proceeds will be mainly used to refinance existing debt," says
Kaven Tsang, a Moody's Senior Vice President, and also Moody's Lead
Analyst for Seazen Group.
Seazen Group's Ba1 corporate family rating mainly reflects the
credit profile of Seazen Holdings, which accounts for 99.6% of
Seazen Group's revenues in the first half of 2020 and 86.9% of its
debt as of the end of June 2020, and is underpinned by the
company's solid sales execution ability, sizable operation scale
and growing stream of recurring rental income.
At the same time, the CFR is constrained by the company's
geographic concentration in the Yangtze River Delta area and
exposure to joint-venture (JV) businesses.
Moody's expects Seazen Group will grow its business with financial
discipline, such that its contracted sales will grow 5%-10%
annually in the next 1-2 years while its annual debt growth will
remain around 10%. As a result, Seazen Group's revenue/adjusted
debt and EBIT/interest coverage will stay strong at 105%-110% and
4.0x-4.5x respectively over the next 1-2 years, compared with 91%
and 4.3x for the 12 months ended June 2020.
Additionally, Moody's expects Seazen Group's rental income
(excluding income from commercial property management services) to
grow to RMB4.5 billion-RMB6.0 billion over the next 1-2 years from
Moody's estimate of around RMB3 billion in 2020 and RMB2.3 billion
in 2019. As a result, Seazen Group's rental income/interest
coverage will strengthen to 60%-70% over the next 1-2 years from
38% in 2019. Such financial metrics support the company's Ba1 CFR.
Seazen Group's liquidity is good. Moody's expects its cash
holdings, together with its cash flow from operating activities,
will be enough to cover its maturing debt (including onshore
puttable bonds) and committed land payments over the next 12-18
months.
Moody's has also considered the following environmental, social and
governance (ESG) factors in its assessment.
From a governance perspective, the company's ownership is
concentrated in its former chairman, who holds a 68.0% stake in
Seazen Group. This risk is mitigated by its established management
team, as well as its good institutional governance structures and
standards as required by the Hong Kong Stock Exchange.
Seazen Group's Ba2 senior unsecured bond rating is one notch lower
than its CFR because of structural subordination risk. Most of
Seazen Group's claims are at the subsidiary level and have priority
over claims at the holding company in a bankruptcy scenario. In
addition, the holding company lacks significant mitigating factors
for structural subordination.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Seazen Group's stable outlook reflects Moody's expectation that the
company will maintain its strong credit metrics, financial
discipline and good liquidity while pursuing growth in contracted
sales and rental income in the next 1-2 years.
Seazen Group could be upgraded if it further diversifies its land
bank in terms of geographic location and sustains its contracted
sales and rental income growth, while maintaining a strong
financial and liquidity profile, with rising rental income that can
largely cover gross interest expenses.
A significant reduction in contingent liabilities associated with
JVs or a lower likelihood of providing funding support to JVs could
also be positive to the ratings.
On the other hand, Seazen Group could be downgraded if its
contracted sales growth slows or it pursues aggressive growth, such
that its credit metrics weaken with EBIT/interest coverage falling
below 4.0x, revenue/adjusted debt falling below 75%-80%, or rental
income/interest staying under 50%, all on a sustained basis; or its
liquidity weakens, as reflected by cash/short-term debt falling
below 125%.
Downward pressure could also increase if the company's contingent
liabilities associated with JVs or the likelihood of providing
funding support to JVs increases significantly.
The principal methodology used in this rating was Homebuilding And
Property Development Industry published in January 2018.
Seazen Group Limited operates through its 67.2%-owned mainland
subsidiary, Seazen Holdings Co., Ltd., and engages primarily in
residential development in China. Seazen Group was founded in 1996
by Wang Zhenhua, who is the former chairman of Seazen Group and
Seazen Holdings. Wang Zhenhua is the largest shareholder of Seazen
Group, holding a 68.0% stake in the company, and has been involved
in the property development business in China (A1 stable) since
1993. The company had a land bank spread across 115 cities in
China, with a total gross floor area (GFA) of around 137.1 million
square meters at the end of June 2020.
TD HOLDINGS: Signs $40MM Stock Purchase Deal with White Lion
------------------------------------------------------------
TD Holdings, Inc. entered into a common stock purchase agreement
with White Lion Capital, LLC, which provides that, upon the terms
and subject to the conditions and limitations set forth therein,
the Investor is committed to purchase up to 15,700,000 shares of
the Company common stock, par value $0.001 per share, with an
aggregate of $40,000,000 from time to time during a certain
commitment period as defined in the Purchase Agreement, at a
purchase price of 90% of the lowest daily volume-weighted average
price of the Company's Common Stock during a valuation period of
three business days prior to the closing of each Purchase Notice
received by the Investor.
Univest Securities, LLC acts as placement agent for the placement
of Purchase Notice Shares to be offered by the Company during the
Commitment Period to the Investor under a Placement Agency
Agreement, dated Jan. 6, 2021. Pursuant to the terms of the
Placement Agency Agreement, the placement agent agreed to use its
reasonable best efforts to arrange the sale of the Company's
Purchase Notice Shares. The Company has agreed to issue 75,000
shares of Common Stock to the Investor in consideration for
entering into the Purchase Agreement and 25,000 shares of Common
Stock to Univest Securities, LLC as initial consideration for the
placement and sale of the Company's Common Stock.
Under the Purchase Agreement, on any trading day with closing price
of Common Stock is greater than or equal to $1.20, the Company has
the right, but not the obligation, to present the Investor with a
purchase notice, directing the Investor (as principal) to purchase
up to certain amount shares of Common Stock. The maximum number of
Common Stocks to be sold under each Purchase Notice shall be
determined by the lesser of 200% of the average daily trading
volume, as defined in the Purchase Agreement, or $1.0 million
divided by the highest closing price of Common Stock over the most
recent five business days including the date of the Purchase
Notice. The maximum amount of the Investor's committed obligation
to purchase under each Purchase Notice shall not exceed $1.0
million, unless waived by the Investor. Notwithstanding the
foregoing, the Investor may waive the limit on the purchase notice
as described above at any time to purchase additional shares under
a Purchase Notice, subject to the conditions and limitations set
forth in the Purchase Agreement.
The closing of each Purchase Notice shall occur on the second
business day after the Investor delivers deposit to the Escrow
Agent any remaining balance of the applicable investment amount and
instructions to disburse immediately available funds from the
escrow account. In the event that the Purchase Price is lower than
$1.20, the Investor is not obligated to purchase all shares of
Common Stock referenced in applicable Purchase Notice and may, in
its sole discretion, deliver an amount up to a certain purchase
notice amount to the Company. In the event that the investment
amount of a Purchase Notice exceeds $1.0 million but is less than
$1,300,000, the Investor shall waive the investment limit for that
applicable Purchase Notice. In the event that the investment of a
Purchase Notice exceeds $1,300,000, the Investor's investment
amount shall be $1,300,000 for that applicable Purchase Notice,
unless waived by the Investor in writing. The Investor shall
return any balance of unsold shares referenced in applicable
purchase notice to the Company on the closing date of applicable
Purchase Notice. Upon the Company's objection to the release of
funds from the escrow account, the Investor shall inform the Escrow
Agent that the instructions are withdrawn and that funds shall be
returned to Investor until new instructions are delivered. The
Company may deliver multiple Purchase Notices to the Investor from
time to time during the Commitment Period, so long as the most
recent purchase has been completed.
The Commitment Period starts on the date of the Purchase Agreement
and shall terminate on the earlier of (i) the date on which the
Investor shall have purchased shares equal to the Commitment
Amount, (ii) Dec. 31, 2021, (iii) the date on which the Investor
shall have purchase 15,700,000 shares or (iv) written notice of
termination by the Company to the Investor upon a material breach
of the Purchase Agreement by Investor.
On Jan. 19, 2021, the Company entered into an escrow agreement with
the Investor, Univest, and Wilmington Trust, N.A. to establish an
escrow account with the Escrow Agent in connection with the
transaction contemplated by the Purchase Agreement. The deposit
funds to be made by the Investor shall not be released by the
Escrow Agent unless the Escrow Agent receives a joint written
instruction issued by the Investor, Univest, and the Company. All
funds deposited to the escrow account by the Investor shall remain
the property of Investor and shall not be subject to any lien or
charge by Escrow Agent or by judgment or creditors' claims against
the Company until released or eligible to be released to Company in
accordance to the Escrow Agreement.
About TD Holdings
Headquartered in Beijing, People's Republic of China, TD Holdings,
Inc., (formerly known as Bat Group, Inc.) operates a luxurious car
leasing business as well as a commodities trading business
operating in China. For the year ended Dec. 31, 2019, the Company
incurred net loss from continuing operations of approximately $6.94
million, and reported cash outflows of approximately $2.17 million
from operating activities. The Company said these factors caused
concern as to its liquidity as of Dec. 31, 2019.
ZHENRO PROPERTIES: Moody's Gives B2 Rating to New Unsec. USD Notes
------------------------------------------------------------------
Moody's Investors Service has assigned a B2 rating to Zhenro
Properties Group Limited's (B1 stable) proposed senior unsecured
USD notes.
Zhenro plans to use the proceeds from the proposed notes mainly to
refinance existing debt.
RATINGS RATIONALE
"Zhenro's B1 corporate family rating (CFR) reflects the company's
(1) good-quality and geographically diversified land bank, which
helps it manage property market volatility and regulatory risks;
(2) ability to generate strong contracted sales growth; and (3)
good liquidity and improved access to funding, especially in the
debt capital markets," says Cedric Lai, a Moody's Vice President
and Senior Analyst.
"However, the company's credit profile is constrained by its
improving but still-moderate financial metrics as a result of its
moderate debt leverage," adds Lai.
The proposed issuance will improve Zhenro's liquidity profile and
will not materially affect its credit metrics, because the company
will use the proceeds mainly to refinance existing debt.
Moody's expects Zhenro's revenue/adjusted debt and adjusted
EBIT/interest, excluding adjustments for its joint-ventures and
associates, will improve to around 50%-55% and around 2.0x,
respectively, over the next 12-18 months from 46% and 1.7x for the
12 months ended June 2020, underpinned by increased revenue
recognition from strong contracted sales over the past two years.
Zhenro's total contracted sales grew 8.6% to RMB141.9 billion in
2020 from the previous year despite the impact of the coronavirus
outbreak. Moody's expects its contracted sales will slightly
increase in the next 12-18 months, supported by its strong sales
execution abilities, good-quality land bank and sizable salable
resources in upper tier cities.
The B2 senior unsecured debt rating is one notch lower than the CFR
due to structural subordination risk. This risk reflects the fact
that the majority of Zhenro's claims are at its operating
subsidiaries and have priority over claims at the holding company
in a bankruptcy scenario. In addition, the holding company lacks
significant mitigating factors for structural subordination.
Consequently, the expected recovery rate for claims at the holding
company will be lower.
Zhenro's liquidity is good. Its cash holdings of RMB39.8 billion as
of 30 June 2020 could cover its short-term debt of around RMB19
billion. Moody's expects the company's cash holdings, together with
expected operating cash inflow, will be able to cover its committed
land purchases, dividend payments, as well as capital spending and
payables for its previous acquisitions, over the next 12-18
months.
In terms of environmental, social and governance (ESG) factors,
Moody's has considered the company's concentrated ownership by the
owner family, which held a 64.56% stake in the company as of June
30, 2020. Moody's has also considered (1) the fact that independent
directors chair the audit and remuneration committees; (2) the low
level of related-party transactions and dividend payouts; and (3)
the presence of other internal governance structures and standards
as required by the Hong Kong Exchange.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
The stable rating outlook reflects Moody's expectation that Zhenro
will be able to execute its sales plan and remain prudent in its
financial management, such as by maintaining sufficient liquidity
over the next 12-18 months.
Moody's could upgrade Zhenro's ratings if the company (1)
demonstrates sustained growth in its contracted sales and revenue
through the economic cycles without sacrificing its profitability;
(2) remains prudent in its land acquisitions and financial
management; (3) improves its credit metrics, such that
EBIT/interest registers at least 3.0x and revenue/adjusted debt
rises to at least 75%-80% on a sustained basis; and (4) maintains
adequate liquidity.
On the other hand, Moody's could downgrade the ratings if Zhenro:
(1) generates weak contracted sales; (2) suffers from a material
decline in its profit margins; (3) experiences an impairment of its
liquidity position, such that cash/short-term debt falls below
1.0x; and/or (4) materially increases its debt leverage.
Credit metrics indicative of a downgrade include EBIT/interest
coverage falling below 2.0x and/or adjusted revenue/debt falling
below 50%-55% on a sustained basis.
The principal methodology used in this rating was Homebuilding And
Property Development Industry published in January 2018.
Zhenro Properties Group Limited was incorporated in the Cayman
Islands in 2014 and listed on the Hong Kong Stock Exchange in
January 2018. At June 30, 2020, Zhenro had 198 projects in 32
cities across China. Its key operating cities include Shanghai,
Nanjing, Fuzhou, Suzhou, Tianjin and Nanchang.
The company was founded by Mr. Ou Zongrong, who indirectly owned
54.6% of Zhenro Properties as of June 30, 2020. Mr. Ou Guowei and
Mr. Ou Guoqiang, the sons of Ou Zongrong, together owned 9.96% of
the company as of the same date.
[*] CHINA: Central Bank Won't Exit Prematurely from Stimulus
------------------------------------------------------------
Bloomberg News reports that China's central bank won't exit
"prematurely" from its supportive monetary policies while at the
same time keeping debt risks under control, Governor Yi Gang said.
Monetary policy will continue to "prop up the economy," Yi said on
a panel hosted by the World Economic Forum on Jan. 26. Officials
will remain mindful of risks, such as a rising macro leverage ratio
and higher non-performing loans, he said, Bloomberg relays.
"Looking forward, I think our monetary policy will continue,"
Bloomberg quotes Mr. Li as saying. "We will keep a delicate balance
between supporting the economic recovery, at the same time,
preventing risk," he said.
Bloomberg relates that Mr. Yi's comments largely echoed those he
gave on Jan. 25 at a virtual conference hosted by Hungary's central
bank, signaling no change in the central bank's existing policy
stance.
However, financial markets were roiled on Jan. 26 after the central
bank withdrew cash from the banking system and an adviser to the
People's Bank of China warned about asset bubbles. Bloomberg says
the PBOC withdrew $12 billion on Jan. 26, an unusual move so close
to the Lunar New Year holiday in February, and followed that by
draining about $15 billion in liquidity on Jan. 27.
Interbank rates continue rising as PBOC shrinks cash pool
Ma Jun, an adviser to the central bank, said recently asset bubbles
in the stock and property markets would continue if monetary policy
remains unchanged.
According to Bloomberg, Securities Times said Jan. 27 in a
commentary that market shouldn't exaggerate the impact of PBOC's
short-term liquidity operations, adding that there is no need to be
too optimistic or too pessimistic about funding.
Mr. Yi didn't address those risks specifically on Jan. 26, while
largely repeating the central bank's recent policy stance,
Bloomberg relates.
"We will ensure that policy is consistent and stable and will not
exit from supporting policy prematurely," he said.
Turning to the economy, Mr. Yi said China will return to around
potential growth rate this year, with exports remaining "pretty
strong" and consumer spending picking up. He also said authorities
were making progress in boosting the contribution of consumption in
the economy.
"Our saving rate is starting to decline a little bit every year,"
Mr. Yi, as cited by Bloomberg, said. "That is a good indication
that more growth is coming from consumption."
Monetary and fiscal policy will focus on "maximizing employment" he
said, adding that a stable labor market should "guarantee very good
consumption."
Mr. Yi also addressed Ant Group Co.'s failed initial public
offering, saying the company could resume its plans once problems
raised by the regulators have been resolved, Bloomberg adds.
=================
H O N G K O N G
=================
SPI ENERGY: Unit to Collaborate with Icona on E-Vehicle Designs
---------------------------------------------------------------
SPI Energy Ltd.'s subsidiary EdisonFuture and automotive design
company Icona Design announced the beginning of a collaboration to
design a range of next generation all-electric vehicles for both
passenger and commercial applications. The passenger and
commercial vehicles will be manufactured and sold by EdisonFuture
and its Phoenix Motorcars subsidiary.
Under this collaboration, Icona will design a host of new products
including advanced pickup trucks and last-mile delivery vans. The
designs and prototypes will incorporate Icona and SPI Energy's
vision for human-centered future transportation and revolutionize
how customers and vehicles interact.
The collaboration aims to build a joint common strategy between
EdisonFuture and Icona to cover a full range of all-electric
vehicles, while drawing from Icona's experience in designing
various cutting-edge products including the autonomous minibus and
all-electric car/crossover platform.
"Icona's vision of the future of transportation is oriented to the
latest technologies. We are proud to be able to cooperate with
EdisionFuture," said Tersio Gigi Gaudio, chairman and CEO of
Icona.
The new products, to be showcased at major 2021 auto shows in the
US, will incorporate various innovations including use of
lightweight materials, solar paneled surfaces to charge the
batteries and advanced electric drivetrain architecture that
focuses on efficiency.
"Our vision for EdisionFuture and Phoenix Motorcars is to be
leaders in sustainable transportation with focus on energy
efficiency and innovative design. We are pleased to be
collaborating with Icona Design to bring this vision to reality,"
stated Xiaofeng Peng, chairman and CEO of SPI Energy.
About SPI Energy Co., Ltd.
SPI Energy -- http://www.spigroups.com-- is a global provider of
photovoltaic solutions for business, residential, government and
utility customers, and investors. The Company develops solar PV
projects that are either sold to third party operators or owned and
operated by the Company for selling of electricity to the grid in
multiple countries in Asia, North America and Europe. The
Company's subsidiary in Australia primarily sells solar PV
components to retail customers and solar project developers. The
Company has its operating headquarter in Hong Kong and its U.S.
office in Santa Clara, California. The Company maintains global
operations in Asia, Europe, North America, and Australia.
SPI Energy reported a net loss attributable to shareholders of the
Company of $15.26 million for the year ended Dec. 31, 2019,
compared to a net loss attributable to shareholders of the Company
of $12.28 million for the year ended Dec. 31, 2018.
Marcum Bernstein & Pinchuk LLP, in Beijing China, the Company's
auditor since 2018, issued a "going concern" qualification in its
report dated June 29, 2020, citing that the Company has a
significant working capital deficiency, has incurred significant
losses and needs to raise additional funds to meet its obligations
and sustain its operations. These conditions raise substantial
doubt about the Company's ability to continue as a going concern.
=========
I N D I A
=========
AAJVETO MANUFACTURING: ICRA Reaffirms B+ Rating on INR11.5cr Loan
-----------------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of Aajveto
Manufacturing Private Limited (AMPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based
Cash Credit 11.50 [ICRA]B+(Stable); Reaffirmed
Fund-based
Term Loan 19.04 [ICRA]B+(Stable); Reaffirmed
Non-fund Based
Bank Guarantee 4.50 [ICRA]A4; Reaffirmed
Rationale
The reaffirmation in the ratings is constrained by AMPL's weak
financial risk profile, characterised by moderate profitability,
leveraged capital structure, weak debt protection metrics and high
working capital intensity. The ratings also factor in the intense
competition in the ceramic industry and the exposure of the
company's profitability to volatility in raw material and fuel
prices. The ratings further take into account the exposure of the
company's operations and cash flows to the cyclicality in the
real-estate industry, which is the main end-user
sector.
The ratings, however, favorably factor in the extensive experience
of the promoters in the ceramic industry and the proximity to raw
material sources, by virtue of its presence in Morbi (Gujarat).
The Stable outlook on the [ICRA]B+ rating reflects ICRA's opinion
that AMPL will continue to benefit from the extensive experience of
its promoters in the ceramic industry.
Key rating drivers and their description
Credit strengths
* Extensive experience of promoters in ceramic industry: AMPL is
managed by directors who have extensive experience in the ceramic
industry by virtue of their association with other entities
involved in the ceramic business.
* Location-specific advantage: The company benefits from the low
transportation cost and the easy access to quality raw materials as
well as power and fuel sources by virtue of the plant's strategic
location in the Morbi region of Gujarat, which is considered to be
the ceramic hub of India.
Credit challenges
* Weak financial risk profile: AMPL's operating income improved by
33% to INR68.2 crore in FY2020, with an increase in sales volume.
However, the operating profitability was moderate at 8.5% in FY2020
(compared to 12.4% in FY2019) due to an increase in power and fuel
consumption and intense competition. The overall debt levels were
high because of high working capital requirement, which along with
a low net-worth base, led to leveraged capital structure, with
gearing at 2.6 times in FY2020. The debt coverage indicators
remained weak, with Total Debt/OPBDITA of 4.0 times and DSCR of 1.1
times in FY2020. Further, the company's working capital intensity
remained high, with NWC/OI at 22% in FY2020-end owing to elongated
receivables and high inventory holding. Consequently, the creditors
also remained stretched to support the liquidity.
* Vulnerability of profitability to adverse fluctuations in raw
material and fuel prices: The company's profitability remains
exposed to fluctuations in raw materials (body clay, feldspar and
glazed frit) as well as power and fuel (coal and PNG) prices. Raw
materials and fuel are the two major components that determine the
cost competitiveness in the ceramic industry. The company has
little control over the prices of key inputs and thus its margins
are exposed to raw material and fuel price fluctuations since it
has limited ability to pass on any upward movement in prices to its
customers.
* Intense competition and cyclicality in real estate industry:- The
ceramic tile manufacturing industry is highly competitive because
of low-entry barriers. The presence of both organised as well as
numerous unorganised players in Gujarat limits the company's
pricing flexibility and the bargaining power with customers,
thereby putting pressure on its revenues and margins. Further, the
real estate industry is the major end user of ceramic tiles, and
hence the company's profitability and cash flows are highly
vulnerable to the cyclicality in the real estate industry.
Liquidity position: Stretched
AMPL's liquidity is stretched because of high working capital
requirement, which has resulted in limited cushion in the cash
credit limits (average utilisation was ~93% for the period - April
2019 to September 2020). In the current fiscal, the liquidity will
be supported by a moratorium on loan repayments by lenders from
March 2020 to August 2020 and Guaranteed Emergency Credit Line of
4.38 crore. Further, timely support from promoters through equity
infusion/unsecured loans will remain crucial in case of any
cash-flow mismatch.
Rating sensitivities
Positive triggers - ICRA could upgrade AMPL's ratings if sustained
increase in revenues and profitability leads to higherthan-expected
cash accruals and better working capital management strengthens the
overall financial risk profile.
Negative triggers - Negative pressure on AMPL's rating could arise
if any decline in revenues and profitability leads to
lower-than-expected cash accruals, or if any major debt-funded
capital expenditure, or stretch in the working capital cycle,
further weakens the company's capital structure and liquidity
profile.
Incorporated in 2013, Aajveto Manufacturing Private Limited started
with the manufacturing of ceramic wall tiles and subsequently,
shifted its product profile to polished glaze vitrified tiles. The
manufacturing facility of the company is located at Morbi, in
Rajkot (Gujarat) and has an installed capacity of manufacturing 30
lakh boxes of tiles per annum currently. The company is promoted
by Mr. Pritesh Jivani and other shareholders, including his
relatives and friends, who have extensive experience in the ceramic
industry. In FY2020, the company reported a net profit of INR0.7
crore on an operating income of INR68.2 crore compared to a net
loss of INR0.4 crore on an operating income of INR51.4 crore in
FY2019.
ADVANTAGE COMPUTERS: ICRA Keeps B+ Ratings in Not Cooperating
-------------------------------------------------------------
ICRA said the ratings for the INR15.00 crore bank facilities of
Advantage Computers India Private Limited continue to remain in the
'Issuer Not Cooperating' category. The ratings are denoted as
"[ICRA]B+(Stable)/[ICRA]A4 ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term - 14.00 [ICRA]B+ (Stable); ISSUER NOT
Fund Based/CC COOPERATING; Rating Continues
to remain under issuer not
cooperating category
Long Term - 0.60 [ICRA]B+ (Stable); ISSUER NOT
Unallocated COOPERATING; Rating Continues
to remain under issuer not
cooperating category
Short-term
Fund Based 0.40 [ICRA]A4 ISSUER 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.
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.
ACIPL was incorporated in 1996 by Mr. J.L. Bhatia and Mr. Sanjeev
Bhatia as a closely held company. The company was primarily into
partial assembling, trading and distribution of mobiles, tablets
and electronic accessories. The electronic accessories include
power banks, computer peripherals, mobile peripherals etc under its
own brand ADCOM (whether imported or purchased domestically).
However, since FY2016, it has received the exclusive national
distributor for Zopo Mobiles, whereby increasing its focus on Zopo
as compared to its own brand.
BHAVANI COTEX: ICRA Keeps B+ Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA said the ratings for the INR8.50 crore bank facilities of
Bhavani Cotex (BC) to remain under Issuer Not Cooperating category.
The long-term rating is denoted as [ICRA]B+ ISSUER NOT COOPERATING
with a Stable outlook.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 6.90 [ICRA]B+(Stable) ISSUER NOT
COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Term Loan 1.60 [ICRA]B+(Stable) ISSUER 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 dated information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity.
BC was established as a partnership firm in July, 2009. Mr.
Gordhanbhai Patel, Mr. Rakeshbhai Patel and Mr. Naineshbhai Patel
manage the operations of the firm and they have extensive
experience in cotton business. The firm's manufacturing unit is
located at Bodeli in Vadodara district, Gujarat. The plant is
equipped with with 32 ginning machines and 1 pressing machine
having an installed capacity of producing 300 cotton bales per day.
The firm is also involved in trading of cotton bales.
BULKTAINER SHIPPING: ICRA Keeps B+ Ratings in Not Cooperating
-------------------------------------------------------------
ICRA said the ratings for the INR10.00 crore bank facilities of
Bulktainer Shipping Limited Continues to remain under 'Issuer Not
Cooperating' category'. The ratings are denoted as
"[ICRA]B+(Stable)/A4 ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term 5.08 [ICRA]B+ (Stable); ISSUER NOT
Fund based- COOPERATING; Rating Continues
Limits to remain under issuer not
cooperating category
Short-term 0.75 [ICRA] A4; ISSUER NOT
Fund based COOPERATING; Rating Continues
Limits to remain under issuer not
cooperating category
Unallocated
limit 4.17 [ICRA]B+(Stable)/A4; ISSUER
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
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.
Bulktainer Shipping Limited is engaged in multi modal logistic
operations by surface and sea transportations. The surface
transportation fleet consists of gas transportation in normal and
insulated bullets, stainless steel multi axle tankers and dry bulk
multipurpose bulkers for cement, alumina and grain transportation.
The company owns ocean going vessels in the multipurpose range
carrying containers, heavy project lifting, bulk dry cargo
including logs in the short-range trade. It has established strong
market presence in surface and sea transportations, having a
rapidly growing young and modern fleet of vehicles and ships.The
company is a closely held limited company and the corporate office
in Mumbai, with branch offices at Vadodara,Kolkata, Haldia, Raipur,
Delhi, Chennai and Bargarh (Odisha).
CHINTAMANI GEMS: ICRA Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------
ICRA said the rating for the INR20.00 crore bank facilities of
Chintamani Gems & Jewellery Private Limited continues to remain
under the 'Issuer Not Cooperating' category. The rating is denoted
as "[ICRA]D ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based 20.00 [ICRA]D ISSUER NOT COOPERATING;
limit 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.
Chintamani Gems & Jewellery Private Limited (CG&JPL) was set up in
2012. Currently, it is engaged in trading of gold jewellery in the
domestic market. Although the company has established a jewellery
manufacturing unit in Surat SEZ, it outsources the manufacturing
work to mostly job workers based in Mumbai due to non-availability
of tax benefits in the SEZ.
DAAJ HOTELS: ICRA Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------
ICRA said the rating for the INR79.50-crore bank facilities Daaj
Hotels And Resorts Private Limited continues to remain under
'Issuer Not Cooperating' category'. The ratings are denoted as
"[ICRA]D ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 79.50 [ICRA]D ISSUER NOT COOPERATING;
Fund Based TL Rating continues to remain in
the 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity. The
rating action has been taken in accordance with ICRA's policy in
respect of non-cooperation by a rated entity available at
www.icra.in.
Daaj Hotels and Resorts Private Limited was incorporated in 1998
and is promoted by Mr. B.S. Sahney and family for the development,
operation and maintenance of a 5-star deluxe hotel at Banjara
Hills, Hyderabad. The operation of the 157 room hotel is currently
being carried out by M/s Carlson Hotels Asia Pacific Pvt Limited
under the brand name Radisson Blu Plaza.
DAIRY TALES: ICRA Hikes Rating on INR19.75cr Term Loan to B+
------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Dairy
Tales Namdhari Pvt Ltd (DTNPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 5.00 [ICRA]B+ (Stable); upgraded
Working Capital from [ICRA]D
Facilities (LT)
Fund based- 19.75 [ICRA]B+ (Stable); upgraded
Term Loan (LT) from [ICRA]D
Unallocated 0.25 [ICRA]B+ (Stable); upgraded
from [ICRA]D
The rating upgrade for DTNPL takes into consideration the
improvement in the company's debt servicing track record. The
ratings draw comfort from the promoters' experience of more than
three decades in the food industry and DTNPL's established
infrastructure facility for milk processing. Moreover, the Group
entities have been regularly offtaking from DTNPL, which supported
its scale expansion. However, the rating remains constrained by the
company's weak financial profile, characterised by small scale, net
losses and inadequate coverage indicators, having deteriorated in
FY2020. Nevertheless, while the promoters have been infusing equity
regularly in the past, in FY2020, DTNPL received deposits from
Group entities, which supported its funding position and is a
rating comfort. ICRA also notes the fragmented nature of the dairy
industry, characterised by intense competition from established and
unorganised players in the Bangalore market. The Stable outlook on
the [ICRA]B+ rating reflects ICRA's expectation that DTNPL will
continue to benefit from its recent product launches and will
continue to receive operational and financial support from the
promoter/Group companies.
Key rating drivers and their description
Credit strengths
* Extensive experience of promoters in dairy industry: DTNPL's
promoters are associated with the dairy industry for over three
decades and are selling milk and milk products through its retail
store, Namdhari Agro Fresh, under the brand name of Dairy Tales and
Namdhari. The entity has a well-established infrastructure for milk
processing and is a part of an established Group. Moreover, the
promoters have been regularly infusing equity in DTNPL till FY2019.
In FY2020, the company received financial support from Group
companies, which lends comfort.
* Offtake support from Group company: About 35.6% of the company's
sales were made to Group entities in FY2020 and 67.0% in H1 FY2021,
providing operational support. In FY2021, the company has launched
A2 milk and milk products in the premium segment, which are
expected to lead to revenue diversity and expansion.
Credit challenges
* Weak financial performance in FY2020: In FY2020, the financial
profile of the entity deteriorated further with continued losses,
which resulted in inadequate debt coverage metrics. The small scale
of operations with revenue of INR16.5 crore in FY2020 coupled with
high depreciation charges and interest cost resulted in net losses
of INR6.3 crore. The interest coverage and DSCR stretched to 0.01
times in FY2020 against 1.53 times in FY2019. In 8M FY2021, amid
the impact of the pandemic, DTNPL recorded sales of around
INR10.0-12.0 crore. However, with encouraging response for the new
product, the company expects to register a moderate growth for the
full year.
* Significant competition from established players: DTNPL faces
intense competition from the unorganised sector, as well as
cooperatives and other private dairies within the organised sector.
This results in limited pricing flexibility for the
company.
Liquidity position: Stretched
DTNPL's liquidity remained stretched with high utilisation of
working capital facilities over the last few months. This coupled
with long-term repayment obligations of INR1.1 crore and low cash
level of INR0.1 crore kept the liquidity position under pressure.
The company availed moratorium benefit as a part of the Covid
relief and Covid loan of INR3.9 crore to support its operations.
This apart, financial support extended by the Group entity of
INR5.0 crore in the form of long-term ICDs provides comfort.
Rating sensitivities
Positive triggers - ICRA could upgrade the ratings of DTNPL if the
company demonstrates a healthy growth in the scale of operations
and profitability, resulting in better coverage metrics. Improved
liquidity position would also be a trigger for ratings upgrade.
Specific credit metrics could be DSCR of more than 1.5 times.
Negative triggers - Expansion of losses, absence of promoter or
group financial support resulting in a further deterioration of
liquidity position, might result in a rating downgrade.
Dairy Tales Namdhari Pvt Ltd (DTNPL), formerly known as Namdhari
Animal Genetics Private Limited, was incorporated in June 2012 in
Uragahalli in Bangalore, Karnataka to set up an integrated dairy
farm over an area of 14 acres. The area increased to 200 acres as
on date. The company was started with a herd size of 80 cows, which
rose to almost 1,500 cows at present with an in-house milk
production capacity of around 50,000 litres per day (LPD). The
company added a new milk processing unit (to manufacture various
dairy-related products) following which the processing capacity
increased to 60,000 LPD. The company plans to further increase the
herd size, going forward. It also procures milk from farmers and
agents in the nearby areas to meet its requirements.
ELITE SHELTERS: ICRA Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA said the ratings for the INR35.00 crore bank facilities of
Elite Shelters continue to remain in the 'Issuer Not Cooperating'
category. The ratings are denoted as "[ICRA]B+(Stable) ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term - 16.50 [ICRA]B+ (Stable); ISSUER NOT
Fund Based/CC COOPERATING; Rating Continues
to remain under issuer not
cooperating category
Long Term - 18.50 [ICRA]B+ (Stable); ISSUER NOT
Fund Based/CC COOPERATING; Rating Continues
to remain under issuer not
cooperating category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
The rating action has been taken in accordance with ICRA's policy
in respect of non-cooperation by a rated entity available at
www.icra.in.
Elite Shelters is a partnership firm promoted by Mr. Pramod Patil
and Mr. Vinod Patil. The firm is a part of the Elite Landmarks
group which has developed residential projects aimed at mid and
high-income groups along with commercial properties in and around
the city of Pune. The firm is presently developing two projects
–Elite Pushkar, a residential cum commercial project in the
Kothrud area of Pune and Elite Aanchal, a residential project in
Koregaon Mul, around 30 kilometres from Pune. Elite Pushkar will
comprise of 116 residential units and 62 commercial units. The
project will have two buildings of 16 floors each including 3
basement floors. Elite Aanchal will comprise of 288 residential
units in two buildings having 7 floors each.
GRUHAM EXOTICA: ICRA Keeps B+ Debt Rating in Not Cooperating
------------------------------------------------------------
ICRA said the rating for the INR15.00 crore bank facilities of
Gruham Exotica continues to remain under 'Issuer Not Cooperating'
category'. The ratings are denoted as "[ICRA]B+(Stable) ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term - 15.00 [ICRA]B+ (Stable); ISSUER NOT
Fund Based/CC COOPERATING; Rating Continues
to remain under issuer not
cooperating category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.
Gruham Exotica is a partnership firm established under the
Partnership Act, 1932, on November 05, 2015, with 11 partners and a
registered office in Surat, Gujarat. The partnership firm was
formed for executing real estate projects, for which the firm owns
a land bank in Surat. Presently, the firm is executing a
residential project, Gruham Exotica, in Surat. The total area of
the project is 3,66,911.68 sq. ft., consisting of Phases I and II.
Phase I consists of 92 row houses, which have already been sold
while Phase II consists of 540 row houses with a built-up area of
3,13,182.05 sq. ft.
IL&FS LTD: Addresses Nearly INR32,000cr of Debt as of December
--------------------------------------------------------------
Business Standard reports that the board of Infrastructure Leasing
& Financial Services (IL&FS) on Jan. 22 said it had addressed
nearly INR32,000 crore of the group's aggregate debt pile of nearly
INR1 trillion by the end of the December quarter (Q3) of FY21.
Business Standard relates that the board has also received the
necessary approvals for its infrastructure investment trust
(InvIT), which targets to resolve approximately INR13,000 crore of
debt, and plans to launch it soon. It has got the Securities and
Exchange Board of India (Sebi) registration certificate, approval
from the committee of creditors of IL&FS Transportation Networks
(ITNL) for transfer of phase-I assets, and green channel
notification for Competition Commission of India (CCI) approval for
the InvIT.
Last June, the board had laid down a road map to resolve a little
over INR56,000 crore of the group's aggregate debt by FY22, the
report recalls. By addressing INR32,000 crore worth of debt, the
group has taken care of nearly 57 per cent of its targeted recovery
value of INR56,000 crore. The board maintained its target of
addressing the rest of the debt by FY22.
Of the INR32,000 crore worth of debt addressed, INR21,600 crore was
based on cash balance and approximately INR10,300 crore was the net
recovery expected based on resolution and restructuring
applications filed in the bankruptcy tribunal and the appellate
tribunal, approvals for which are awaited, according to Business
Standard.
Since September, debt addressed based on cash balance increased by
INR2,500 crore due to receipt of settlement amount by IL&FS Solar
Power to the tune of INR780 crore, receipt of INR1,190 crore as
tariff payments by IL&FS Tamil Nadu Power, and recovery of INR300
crore in IL&FS financial services (IFIN) from borrowers outside the
group, Business Standard relates.
As of Q2, debt addressed by the new board and the management was
INR19,000 crore, against the target of INR26,440 crore. The
shortfall of INR7,300 crore was rolled over to subsequent quarters,
Business Standard discloses.
The delay was mainly on account of the Covid-19 pandemic, which
added time and logistical complexities in the process of completing
discussions with stakeholders and in obtaining approvals from
lenders, regulators, and judicial authorities, the board, as cited
by Business Standard, said.
Business Standard adds that the resolution and recovery
applications filed with the National Company Law Tribunal (NCLT)
and the National Company Law Appellate Tribunal (NCLAT) have gross
resolution value of INR14,400 crore.
This includes three road assets to the tune of INR7,550 crore,
restructuring of IL&FS Tamil Nadu Power for approximately INR4,990
crore, and INR1,370 crore towards the settlement of amount to be
received by Kiratpur Ner Chowk Expressway and Fagne Songarh
Expressway pursuant to the termination of relevant concession
agreements, Business Standard relays.
Since October, the new board has been successful in obtaining a
host of things that aided the recovery process of the beleaguered
company - such as completing the bidding process for IL&FS group's
stake in ONGC Tripura Power Company with an aggregate recovery
value of over INR3,800 crore, completing the sale of CPG BPM, and
launching the sale process of IFIN's external non-performing loan
portfolio of around INR4,700 crore, Business Standard adds.
About IL&FS
Infrastructure Leasing & Financial Services Limited (IL&FS) --
https://www.ilfsindia.com/ -- is an infrastructure development and
finance company based in India. It focuses on the development and
commercialization of infrastructure projects, and creation of value
added financial services. The company operates in Financial
Services, Infrastructure Services, and Others segments.
The Indian government, in October 2018, stepped in to take control
of crisis-ridden IL&FS by moving the National Company Law Tribunal
(NCLT) to supersede and reconstitute the board of the firm which
has defaulted on a series of its debt payments, according to Indian
Express. This was said to be an attempt to restore the confidence
of financial markets in the credibility and solvency of the
infrastructure financing and development group.
KAYGEE SHOETECH: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Kaygee Shoetech Private Limited
41, Matheswartola Road
Kolkata WB 700046
- and -
33/A, Tarachand Dutta Street
6th Floor
Kolkata 700073
Insolvency Commencement Date: January 19, 2021
Court: National Company Law Tribunal, Kolkata, West Bengal Bench
Estimated date of closure of
insolvency resolution process: July 18, 2021
Insolvency professional: Mr. Pankaj Kumar Kedia
Interim Resolution
Professional: Mr. Pankaj Kumar Kedia
1, R.N. Mukherjee Road
Lal Bazaar, Kolkata 700001
E-mail: pkkedia2@rediffmail.com
cirp.kaygee@gmail.com
Last date for
submission of claims: February 1, 2021
KK LEISURES: ICRA Keeps B- Debt Ratings in Not Cooperating
----------------------------------------------------------
ICRA said the ratings for the INR15.00-crore bank facilities of
K.K. Leisures & Tourism International Private Limited continue to
remain under 'Issuer Not Cooperating' category'. The ratings are
denoted as "[ICRA]B-(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund 14.27 [ICRA]B- (Stable); ISSUER NOT
Based TL COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
Long Term-Fund 0.73 [ICRA]B- (Stable); ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.
K.K. Leisures & Tourism International Private Limited, incorporated
in 2007, owns and operates hotels across Kerala. The Company has
three hotels under the name – Broad Bean; of which two hotels are
located in Kannur district and a resort in Munnar district. During
September 2013, the promoters of the company acquired a 3-star
property in Kochi – Broad Bean, Vytilla (erstwhile Nyle Plaza),
which was later upgraded to a 4-star hotel and operates as a
subsidiary of KKLT. The group enjoys moderate brand equity due to
its operational history of over a decade of the 'Broad Bean' chain.
MARUTI NOUVEAUKNITS: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
ICRA said the ratings for the INR11.72 crore bank facilities of
Maruti Nouveauknits Private Limited continues to remain under the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D/D ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term– 4.50 [ICRA]D ISSUER NOT COOPERATING;
Fund Based Rating continues to remain under
Cash Credit 'Issuer Not Cooperating' category
Long Term– 3.50 [ICRA]D ISSUER NOT COOPERATING;
Fund Based TL Rating continues to remain under
'Issuer Not Cooperating' category
Short-Term–Non 0.35 [ICRA]D ISSUER NOT COOPERATING;
Fund Based Rating continues to remain under
'Issuer Not Cooperating' category
Long term/ 3.37 [ICRA]D ISSUER NOT COOPERATING;
Short Term- Rating continues to remain under
Unallocated '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.
Gujarat Hiflow Yarn Limited (GHYL) was incorporated in 1993 by the
Aggarwal group and was engaged in texturing of yarn. On May 2009
the company was acquired by Mr. Anil Chaudhary and Mr. Keshari
Chand Chhajer. The entire business was revamped and GHYL started
manufacturing metallic films, hot stamping foil and sequin foil.
The name of the company was changed to Maruti Holostic Limited and
subsequently to Maruti Holostic Private Limited in April 2015 to
align its name with the line of business. The company started
manufacturing holographic items from February 2016; the products
manufactured included holographic labels, films, and stickers. The
company was also involved in trading of solar panels and finished
fabrics from FY2016. The finished fabrics comprised sarees and
dress materials which were procured from Surat and sold in
different parts of India.
MARUTI PAPERS: ICRA Withdraws B+ Rating on INR8.51cr Term Loan
--------------------------------------------------------------
ICRA has withdrawn the ratings on certain bank facilities of Maruti
Papers Limited (MPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based/ 6.50 [ICRA]B+ (Stable) ISSUER NOT
Cash Credit COOPERATING; Withdrawn
Fund based/ 8.51 [ICRA]B+ (Stable) ISSUER NOT
Term loan COOPERATING; Withdrawn
Non-fund based/ 2.00 [ICRA]A4 ISSUER NOT
Letter of credit COOPERATING; Withdrawn
Rationale
The ratings assigned to the bank facilities of Maruti Papers
Limited have been withdrawn in accordance with ICRA's policy on
withdrawal and suspension at the request of the company, basis the
no due certificates provided by its bankers. ICRA does not have
adequate information to suggest that the credit risk has changed
since the time the rating was last reviewed.
Key rating drivers and their description
Key rating drivers have not been captured as the rated
instrument(s) are being withdrawn.
MPL was incorporated in September 1988 and is engaged in the
manufacturing of kraft paper from agricultural residues and waste
paper. The company commenced commercial production in March 1990
with an installed capacity of 6,000 Metric Tons (MT) per annum.
Over the years the company has expanded the installed capacity to
manufacture the kraft paper and currently has an installed capacity
of 24,000 MT per annum. The company's manufacturing unit is located
in Muzaffarnagar district of Uttar Pradesh.
P N RAO: ICRA Downgrades Rating on INR6.0cr LT Loan to B+
---------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of P N Rao,
as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund 6.00 [ICRA]B+ (Stable) ISSUER NOT
Based/CC COOPERATING; Rating downgraded
from [ICRA]BB (Stable) and
continues to remain under
'Issuer Not Cooperating'
Category
Long Term-Fund 2.70 [ICRA]B+ (Stable) ISSUER NOT
Based/TL COOPERATING; Rating downgraded
from [ICRA]BB (Stable) and
continues to remain under
'Issuer Not Cooperating'
Category
Rationale
The ratings are downgrade because of lack of adequate information
regarding P N Rao 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 P N Rao 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.
P N Rao was incorporated in the year 1923 by Shri P.N.Rao. The
company retails in branded suits, shirts and accessories. It is one
of the largest suit selling stores in south India. P N Rao group is
a leading dealer in textiles, readymade garments and tailor in
suits and other accessories. With years of experience and
expertise, it is one of the largest stores in Bangalore for
purchase or tailoring of suits. Having started its flagship store
on MG Road in Bangalore, the group has grown consistently over the
last decade with 5 stores in Bangalore and two in Chennai. With
consistent growth, the management plans to incorporate more stores
in the country and expand its reach to the customers.
PRAMUKH COPPER: ICRA Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA said the ratings for the INR15.00-crore bank facilities of
Pramukh Copper Pvt. Ltd (ITPL) continue to remain under 'Issuer Not
Cooperating' category. The ratings are denoted as "[ICRA]D/D;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 5.00 [ICRA]D ISSUER NOT COOPERATING;
Rating continues to remain under
'Issuer Not Cooperating' category
Term Loans 1.75 [ICRA]D ISSUER NOT COOPERATING;
Rating continues to remain under
'Issuer Not Cooperating' category
Letter of 5.00 [ICRA]D ISSUER NOT COOPERATING;
Credit/Buyer's Rating continues to remain under
Credit 'Issuer Not Cooperating' category
Bank Guarantee 1.00 [ICRA]D ISSUER NOT COOPERATING;
Rating continues to remain under
'Issuer Not Cooperating' category
Forward Contract 0.10 [ICRA]D ISSUER NOT COOPERATING;
Rating continues to remain under
'Issuer Not Cooperating' category
Unallocated
Limits 2.15 [ICRA]D ISSUER 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.
Established in January 2011, Pramukh Copper Private Limited (PCPL)
is a private limited company involved in processing copper cathodes
and copper scraps to produce copper bus bar and profiles, round
copper rods, copper strips and copper coils. PCPL also procures
copper rods from outside and modifies them in terms of sizing and
length before selling them to the final customers. Furthermore,
PCPL also does production on job work basis. PCPL's plant is
located at Silvassa, Dadra Nagar Haveli, and has an installed
capacity of around 1500 MTPA.
PREMIER INDUSTRIAL: ICRA Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------------
ICRA said the ratings for the INR50.00 crore bank facilities of
Premier Industrial Corporation Limited continue to remain under
'Issuer Not Cooperating' category'. The ratings are denoted as
"[ICRA]B+ (Stable)/A4 ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 45.00 [ICRA]B+ (Stable); ISSUER NOT
Cash Credit COOPERATING; Rating Continues
to remain under issuer not
cooperating category
Fund based- 0.03 [ICRA]B+ (Stable); ISSUER NOT
Term Loan COOPERATING; Rating Continues
to remain under issuer not
cooperating category
Fund Based– (2.00) [ICRA]A4; ISSUER NOT
Bills Purchased COOPERATING; Rating Continues
(BP)/Bills to remain under issuer not
Discounted (BD) cooperating category
Non-fund based– (20.00) [ICRA]A4; ISSUER NOT
Letter of Credit COOPERATING; Rating Continues
(LC) to remain under issuer not
cooperating category
Unallocated
limits 4.97 [ICRA]B+ (Stable)/A4; ISSUER
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
information on the issuers' performance. Accordingly, the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.
Established in 1978, Premier Industrial Corporation Ltd. is engaged
in the processing of ferro and metal such as ferromanganese,
ferrochrome and ferrosilicon and nickel wires and caters mainly to
the welding electrode industries in foreign as well as domestic
markets. PICL is an ISO 9001:2000 certified entity. PICL is a part
of the Kamman Group, which has two other group concerns named
'Premier Developers', which is in the business of construction and
'Kamman Corporation' (rated as [ICRA]B+(stable)/[ICRA]A4 ISSUER NOT
COOPERATING by ICRA in October 2019), engaged in trading of
minerals and ferro alloys. The company has its registered office at
Vikhroli, Mumbai and manufacturing facilities at Rabale, Taloja and
Bhiwandi.
RAJESH CONSTRUCTION: ICRA Keeps B+ Ratings in Not Cooperating
-------------------------------------------------------------
ICRA said the ratings for the INR10.00 crore bank facilities of
Rajesh Construction Company continue to remain under 'Issuer Not
Cooperating' category'. The ratings are denoted as "[ICRA]
B+(Stable)/A4ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based 2.38 [ICRA]B+(Stable) ISSUER NOT
Limits COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Non Fund based 5.75 [ICRA]B+(Stable) ISSUER NOT
Limits COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Unallocated limit 1.87 [ICRA] B+(Stable)/A4; ISSUER
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
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.
Rajesh Construction Company was established as a partnership firm
in 1971 and the operations of the firm are managed by Mr. Rajesh
Chandrachud, who is a Civil Engineer with over two decades of
experience in the construction industry. RCC is primarily engaged
in the construction of roads and laying of sewerage pipelines for
government departments. The firm is registered as an ‘AA’ Class
Contractor with the Mumbai Municipal Corporation and as a ‘Class
I’ contractor with the Public Works Department in Maharashtra,
the Maharashtra Jeevan Pradhikaran and the Road Construction
Department in Jharkhand.
RS MOTORS: ICRA Keeps B+ Debt Rating in Not Cooperating Category
----------------------------------------------------------------
ICRA said the rating for the INR30.00 crore bank facilities of R.
S. Motors Pvt Ltd continues to remain in the 'Issuer Not
Cooperating' category. The ratings are denoted as "[ICRA]B+
(Stable) ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 30.00 [ICRA]B+ (Stable); ISSUER NOT
Cash Credit COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
The rating action has been taken in accordance with ICRA's policy
in respect of non-cooperation by a rated entity available at
www.icra.in.
RSM has been operating multiple passenger vehicle dealerships for
Toyota for the last 15 years, and its promoters have been in the
auto dealership business for over three decades. The company's
first sales outlet commenced operations at Udaipur in 2001 and
RSMPL currently has six 3S (sales, service and spares) outlets at
Jaipur, Kota, Udaipur, Bhilwara and Chittorgarh in Rajasthan. RSMPL
is a part of the Chandra Group of companies, consisting of multiple
companies in the same line of business i.e. automobile dealership.
S&J GRANULATE: ICRA Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
ICRA said the ratings for the INR5.00 crore Non-convertible
Debentures NCD of S&J Granulate Solutions (P) Limited continues to
remain under the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]D ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
NCD 5.00 [ICRA]D ISSUER 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.
Business Incorporated in 2010, S&J Granulate Solutions Private
Limited (SGSPL) is engaged in the business of recycling of used &
worn out tyres. Post recycling of used tyres, three products are
separated (rubber granules, steel wire and nylon fibre). The
company imports used radial tyres mostly from Europe & Middle East;
while the separated products post recycling are sold domestically
to various players. The company's manufacturing facility is located
at Vapi Silvassa road in Gujarat. SGSPL is promoted by Jiwarajka
and Agarwal Family.
SAMDARIYA ABHUSHAN: ICRA Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------------
ICRA said the ratings for the INR50.00 crore bank facilities of
Samdariya Abhushan Pvt Ltd continue to remain in the 'Issuer Not
Cooperating' category. The ratings are denoted as "[ICRA]B+
(Stable) ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-Term 25.00 [ICRA]B+ (Stable); ISSUER NOT
Fund based- COOPERATING; Rating continues
Cash Credit to remain in the 'Issuer Not
Cooperating' category
Long-Term/ 25.00 [ICRA]B+ (Stable); ISSUER NOT
Unallocated 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.
The rating action has been taken in accordance with ICRA's policy
in respect of non-cooperation by a rated entity available at
www.icra.in.
Incorporated in 2004, Samdariya Abhushan Pvt. Ltd. (SAPL) is a
private limited company promoted by the Samdariya family of
Jablpur, Madhya Pradesh. The company is engaged in retailing of
gold, diamond and studded jewellery in Jabalpur and Katni region of
Madhya Pradesh under its brand 'Samdariya Abhushan'. With over 150
years of experience in this business, the brand enjoys a good
reputation in the market over the organized players. The company
manufactures and also outsources the manufacturing of jewellery
from various suppliers. In terms of designing, given the company's
experience and understanding of its market the company makes
designs and sources designs from its suppliers. The major
operations of the company are looked after by Mr Piyush Samdariya.
The company operates two outlets in Jabalpur and an outlet also in
Katni region, this apart the company also operates two other
outlets in other SPV.
SAPTARISHI HOTELS: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Saptarishi Hotels Private Limited
Survey No. 91
NITHM Premises, Telecomnagar
Gachibowli, Hyderabad
TG 500032
IN
Insolvency Commencement Date: January 18, 2021
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: July 20, 2021
Insolvency professional: Sivanagaraja Taduvai
Interim Resolution
Professional: Sivanagaraja Taduvai
#16 (11-20-18)
Shop Cum Flat
Huda Complex, Kothapet
Hyderabad 500035
India
E-mail: tsnraja@gmail.com
Last date for
submission of claims: February 4, 2021
SATISH CHAND: ICRA Keeps B+ Debt Rating in Not Cooperating
----------------------------------------------------------
ICRA said the ratings for the INR9.00 crore bank facilities of
Satish Chand Rajesh Kumar Private Limited continue to remain under
Issuer Not Cooperating category.The Ratings are denoted as
"[ICRA]B+ (Stable)/[ICRA] A4 ; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term - 1.00 [ICRA]B+ (Stable); ISSUER NOT
Fund Based/CC COOPERATING; Rating Continues
to remain under issuer not
cooperating category
Short-term
Fund Based 8.00 [ICRA]A4 ISSUER 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 dated information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity.
Established in 1985 as a private limited company, SRPL executes
civil engineering and infrastructure works, including construction
of buildings, community halls, residential blocks, hospital blocks,
and schools; builds streets, drainages, footpaths; and undertakes
day-to-day maintenance. The company also undertakes electrical and
water supply installation related work while executing the
contracts. The company is registered as a Class-I contractor with
the Department of Social Welfare and is eligible to bid for tenders
upto INR20 crores.
SHANTI INTEGRATED: ICRA Keeps B Debt Rating in Not Cooperating
--------------------------------------------------------------
ICRA said the ratings for the INR67.00 crore bank facilities of
Shanti Integrated Textile Park Pvt. Ltd. Continues to remain under
'Issuer Not Cooperating' category'. The ratings are denoted as
"[ICRA]B (Stable)/A4 ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 63.00 [ICRA]B (Stable); ISSUER NOT
Term Loan COOPERATING; Rating Continues
to remain under issuer not
cooperating category
Non fund based– 4.00 [ICRA] A4; ISSUER NOT
Bank Guarantee COOPERATING; Rating Continues
to remain under issuer not
cooperating category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.
Shanti Integrated Textile Park Limited (SITPPL) is a special
purpose vehicle (SPV) promoted by the Gajera family of the Laxmi
Group (Surat) who have interests in diversified sectors like real
estate, gems and jewellers, textile, solar energy, ceramics,
education, etc. The company is currently developing a textile park
over 48.16 acres of land, near Surat, whereby 45 companies will
have manufacturing facilities pertaining to weaving, apparel
manufacturing, spinning etc. The project has been approved under
Government of India scheme – SITP (Scheme for Integrated Textile
Parks) in 2015, enabling part of the project cost to be funded by
the Government of India. The project was expected to be completed
by the end of FY2018.
SHIVAY MINERALS: ICRA Keeps B Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA said the ratings for the INR6.50 crore bank facilities of
Shivay Minerals continue to remain under Issuer Not Cooperating
category. The long-term rating is denoted as [ICRA]B(Stable) ISSUER
NOT COOPERATING with a Stable outlook.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based- 4.50 [ICRA]B (Stable); ISSUER NOT
Term Loan COOPERATING; Rating Continues
to remain under issuer not
cooperating category
Fund-based- 2.00 [ICRA]B (Stable); ISSUER NOT
Working Capital COOPERATING; Rating Continues
Facilities 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 dated information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity.
Shivay Minerals was incorporated in April, 2017. It is promoted by
Mr. Nayankumar Ghelajibhai Bhagiya along with seven other partners.
The firm plans to manufacture ceramic body clay (powder), which is
used in manufacturing ceramic tiles. The key promoters have
reasonable experience in manufacturing ceramic body clay (powder).
Its manufacturing facility is located at Morbi, Gujarat, which is a
ceramic industry hub. It has an installed capacity to produce
90,000 MT of ceramic body clay (powder) annually.
SHOBHA CARDS: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Shobha Cards Private Limited
3618 Sudershan Market
Chawri Bazar, New Delhi
India 110006
Insolvency Commencement Date: January 18, 2021
Court: National Company Law Tribunal, Noida, UP Bench
Estimated date of closure of
insolvency resolution process: July 16, 2021
Insolvency professional: Mr. Shaikh Nafis Anjum
Interim Resolution
Professional: Mr. Shaikh Nafis Anjum
Flat No. A-206
Prateek Stylome Apartment
Sector-45, Noida
Uttar Pradesh 201303
E-mail: sn.anjum123@gmail.com
- and -
E-10A, Kailash Colony
Greater Kailash-1
New Delhi, Delhi 110048
E-mail: sn.anjum@aaainsolvency.com
shobha.cards@aaainsolvency.com
Last date for
submission of claims: February 1, 2021
SPARRON VITRIFIED: ICRA Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------------
ICRA said the ratings for the INR35.00 crore bank facilities of
Sparron Vitrified LLP continue to remain under the 'Issuer Not
Cooperating' category. The rating is denoted as [ICRA]B+(Stable)/
[ICRA]A4 ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 26.00 [ICRA]B+ (Stable); ISSUER NOT
Term Loan COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
Fund based- 6.00 [ICRA]B+ (Stable); ISSUER NOT
Cash Credit COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
Non-Fund Based- 3.00 [ICRA]A4; ISSUER NOT
Bank Guarantee COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
The rating action has been taken in accordance with ICRA's policy
in respect of non-cooperation by a rated entity available at
www.icra.in.
Established on April 21, 2017; Sparron Vitrified LLP (SPL) is a
green field project to manufacture glazed vitrified tiles from its
plant situated at Morbi, Gujarat. The promoters have longstanding
experience in the ceramic industry by the virtue of being
associated with other ceramic companies. The installed capacity for
the proposed project will be 74000 MTPA. The company proposes to
manufacture glazed vitrified tiles of two sizes 600"X600" and
300"X600". The commercial production is expected to commission from
May 2018.
TRINITY MAHALASA: ICRA Keeps B+ Debt Rating in Not Cooperating
--------------------------------------------------------------
ICRA said the ratings for the INR6.00 crore bank facilities of
Trinity Mahalasa Durga Sales and Services continue to remain in the
'Issuer Not Cooperating' category. The ratings are denoted as
"[ICRA]B+(Stable)/[ICRA]A4 ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 4.50 [ICRA]B+ (Stable); ISSUER NOT
Cash Credit COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
Non-Fund Based- 1.50 [ICRA]A4; ISSUER NOT
Bank Guarantee COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
The rating action has been taken in accordance with ICRA's policy
in respect of non-cooperation by a rated entity available at
www.icra.in.
Trinity Mahalasa Durga Sales and Services is a partnership firm
established in 2007. It is an authorised distributor of products
manufactured and marketed by Cummins India Limited (CIL) in Goa and
17 districts of Maharashtra. The firm is a Grade 'A' distributor of
products of CIL and operates from two head branches, one in Panaji
(which handles Goa operations) and the other in Aurangabad (which
handles operations of 17 districts in Maharashtra).
[*] INDIA: Over 50% of Real Estate Cases Under IBC Closed in 2020
-----------------------------------------------------------------
Moneycontrol News reports that almost half of the real estate cases
filed before the National Company Law Tribunal (NCLT) by invoking
the Insolvency and Bankruptcy Code in 2016 (IBC) have been
resolved, an analysis has said.
Both IBC and RERA reforms strengthened the hands of homebuyers,
giving them alternate forums to get justice, the report says.
Homebuyers can now file claims before the consumer courts under
RERA, and before the National Company Law Tribunal (NCLT) by
invoking IBC.
As per data by the Insolvency and Bankruptcy Board of India (IBBI),
there has been a steady increase in the number of CIRP cases over
the last four years. Of the total 4,008 cases since inception, real
estate accounts for nearly 20% share or approximately 793 CIRPs as
of September-end 2020, Moneycontrol discloses.
Of these, over 50 percent or approximately 398 CIRPs have already
been closed while 395 remain for which banks and operational
creditors are seeking resolution, an analysis by Anarock has said,
the report relays.
According to Moneycontrol, data trends also indicate that there has
been a steady progress in the total percentage of resolved CIRPs
q-o-q. As on Jul-September 2018, out of the total admitted 209
CIRPs in real estate, just 33 percent were closed. While as on
July-September 2020, of the total 793 cases, over 50 percent are
closed, it said.
"Thus, the bankruptcy reform has sought to rebalance the rights of
lenders and shareholders of defaulting firms so that the fear of
loss of ownership and management control would force the promoters
in deciding a rescue package. The buyers and creditors today may
have avenues of seeking legal intervention and reliefs to secure
their debts and investments liberally from these bodies, the
solutions need to be expedited and implemented," Moneycontrol
quotes Shobhit Agarwal, MD & CEO – ANAROCK Capital, as saying.
By 2019 end, nearly 5.76 lakh units (launched in 2013 or before)
valued at over INR4.64 lakh crore were delayed/stalled in seven
major cities, the report notes. To mitigate this impediment the
government has initiated the Alternate Investment Fund (AIF) with a
corpus of INR25,000 crore in 2019.
Since the inception of the provisions for corporate insolvency
resolution process (CIRPs) on December 1, 2016, a total of 4,008
CIRPs across various sectors had commenced as of September-end
2020, Moneycontrol notes.
Of these, 473 have been closed on appeal or review or settled, 291
have been withdrawn, 1,025 have ended in orders for liquidation and
277 have ended in approval of resolution plans, the report
discloses. At present 1,942 CIRPs remain, for which banks and
operational creditors are seeking resolution, Moneycontrol adds.
=========
J A P A N
=========
SOFTBANK GROUP: S&P Alters Outlook to Stable, Affirms 'BB+' ICR
---------------------------------------------------------------
S&P Global Ratings has revised the outlook on its long-term issuer
credit rating on SoftBank Group Corp. to stable from negative. S&P
affirmed the 'BB+' long-term issuer credit rating. It also affirmed
the issue credit ratings.
S&P said, "The outlook revision reflects our belief that the
Japan-based investment holdings company will prioritize its
financial soundness and credit ratings, given that it has sold
considerable assets and reduced debt. The outlook revision is also
based on our expectation that the company will maintain a
relatively strong portfolio, from a liquidity and credit quality
perspective, and financial ratios will remain commensurate with the
issuer credit rating in the next one to two years.
"The company's aggressive growth strategy and financial policy are
unlikely to erode its creditworthiness materially in the next one
to two years, in our view. During the past year, SoftBank Group has
sold assets worth JPY5.6 trillion, exceeding the planned JPY4.5
trillion, mainly shareholdings in Alibaba Group Holding Ltd.
(A+/Stable/--), T-Mobile US Inc. (BB/Stable/--), and its domestic
telecommunication subsidiary, SoftBank Corp. The company has
reduced its debt by JPY1.5 trillion. While this was slightly less
than we had assumed, we expect the company's financial profile to
remain commensurate with the rating. In addition, it has announced
plans to sell Arm Ltd., which had been positioned as a growth
pillar, to Nvidia Corp.
"We consider the sales as evidence of a flexible approach to asset
replacement. The company has monetized about 20% of its investment
portfolio in the past year. We expect it to reinvest the proceeds
in high-liquidity stocks or in SoftBank Vision Fund 2, as well as
for shareholder returns and to reduce debt. We had previously
assumed that the company would finance investment in SoftBank
Vision Fund with debt. We see reinvestment of the proceeds of asset
sales as a positive factor, as this helps to control total debt.
"SoftBank Group is likely to maintain an investment portfolio with
strong liquidity and high credit quality, in our view. It is highly
liquid because listed assets account for nearly 70% of the
portfolio. Therefore, we think it can monetize investments
relatively easily if necessary. Alibaba shares account for more
than 50% of the portfolio. Although this entails a certain
concentration risk, Alibaba shares support the creditworthiness of
the entire portfolio. As a result, the portfolio has relatively
high creditworthiness, with a weighted average rating in the 'BBB'
category.
"We expect the company to maintain financial ratios that are
commensurate with the rating in the next one to two years. Progress
in reducing debt along with the relatively solid prices of the
stocks it holds have helped the loan-to-value (LTV) ratio improve
to about 18% as of Sept. 30 from about 26% as of March 31, 2020. We
estimate the ratio has hovered at around 20% in recent months, and
we expect it to be within 25%-30% for the next year or so. This is
based on the value of its assets, which we estimate is currently
about JPY27 trillion, and our assumptions of zero net investments
(fresh investments minus recovered investments) and share buybacks
of about JPY1.5 trillion. The expected LTV ratio is an improvement
on our previous assumption of 30%-35% and leaves some headroom
under the 40% threshold where we would start considering a
downgrade. Furthermore, we estimate the LTV ratio would deteriorate
only to about 35% even if the market value of the portfolio
declined about 25%.
"We expect the company to maintain adequate cash flow for the
rating. SoftBank Group receives dividends mainly from SoftBank
Corp. The dividend income is unlikely to cover all recurring
expenses, because the company sold some of its shares in the
subsidiary. However, we expect the dividend income to remain within
range for the rating. The company's cash and deposits will help
cover recurring expenses. SoftBank Group maintains cash and
deposits at a level far exceeding the shortfall of dividend income,
under a policy of holding ample cash on hand covering bond
redemptions for at least the next two years. Our assessment of its
liquidity is commensurate with the rating, but has limited leeway
as the company has a large investment commitment."
SoftBank Group's heavy debt burden and bullish financial policy,
which support its highly aggressive growth strategy, will continue
to be a constraining factor for the rating. The company's debt was
about JPY5.8 trillion as of Sept. 30, 2020, (on an unconsolidated
basis excluding debt relating to prepaid forward contracts and
margin loans). This is a considerable amount for the Japanese
corporate sector. The size of its debt in absolute terms could
constrain its ability to access financing if the market environment
and the performance of its investments deteriorate, despite its
established relations with financial institutions and its cash on
hand. Furthermore, the LTV ratio could rise considerably higher
than those of other investment holding companies S&P rates.
SoftBank Group has a policy of keeping the ratio (by its
definition) below 25% in normal times and 35% in an emergency
(equivalent to 31%-32% and 41%-42%, respectively, in our
calculations).
S&P said, "The stable outlook reflects our view that SoftBank Group
is likely to maintain an investment portfolio with strong liquidity
and high credit quality and its LTV ratio at about 25%-30% in the
next one to two years.
"We might consider downgrading SoftBank Group if we come to believe
the LTV ratio will approach 40% (by our calculations). This could
occur if the company adopts a more aggressive financial policy or
increases shareholder returns, or if the value of its investment
portfolio falls materially and the company does not stem the
decline. We would consider a downgrade also if its asset liquidity
worsens substantially and the proportion of listed assets in the
portfolio falls significantly below 70%. Another downgrade scenario
would be if the creditworthiness of its investments falls greatly
from the 'BBB' category. Lastly, we would consider a downgrade if
its liquidity sources were not able to fully cover its uses over
the next 12 months, due to a rapid increase of investment in its
fund business."
S&P might consider an upgrade in either of two scenarios:
-- S&P sees a sufficient record of the LTV ratio remaining well
below 20% (by its calculations) and it determines the company will
be able to maintain it at that level, while also adopting a more
conservative financial policy, including a more disciplined
approach to shareholder returns.
-- The company lowers the proportion of stocks of the largest
investee in its portfolio to less than 40% from over 50% while
maintaining the creditworthiness of the portfolio.
Outlook Action; Ratings Affirmed
SoftBank Group Corp.
To From
Issuer Credit Rating BB+/Stable/-- BB+/Negative/--
Affirmed
Senior Unsecured BB+
Senior Unsecured BB+
Subordinated B+
===============
M A L A Y S I A
===============
1MDB: Goldman Sachs CEO Gets US$10MM Pay Cut Over Bank Scandal
--------------------------------------------------------------
Reuters reports that Goldman Sachs chief executive David Solomon's
annual pay fell by US$10 million or 36 per cent in 2020, according
to regulatory disclosures filed on Jan. 26, reflecting the bank's
role in Malaysia's 1MDB scandal.
Mr. Solomon will receive US$17.5 million for his work during the
year, compared with US$27.5 million the year before, the bank
said.
According to Reuters, Goldman previously announced it would reduce
Mr Solomon's pay, along with that of chief financial officer
Stephen Scherr and chief operating officer John Waldron, in light
of the findings of investigations into the bank's role in the
affair.
The scandal dates to the government of former Malaysian Prime
Minister Najib Razak, which set up the 1MDB fund in 2009.
Between 2009 and 2014, Goldman bankers paid more than US$1.6
billion in bribes to foreign officials in Malaysia and Abu Dhabi to
win 1MDB business, including underwriting US$6.5 billion in bond
sales, for which it earned US$600 million in fees, the bank has
said, Reuters recalls.
Mr. Waldron will receive US$18.5 million for his work last year,
down 24 per cent or US$6 million, from 2019.
Mr. Scherr will be paid US$15.5 million, down 31 per cent or US$7
million, from the previous year, Reuters discloses.
Were it not for the 1MDB scandal, Mr. Solomon and Mr. Scherr's pay
would have been unchanged from the previous year, the bank said,
and Mr. Waldron's pay would have risen by US$1 million, according
to Reuters.
Rival Morgan Stanley's chief executive James Gorman saw his annual
pay rise by US$6 million or 22 per cent last year, Reuters
discloses citing a regulatory filing released on Jan. 22.
Goldman said in October it is clawing back US$174 million from a
dozen current and former executives, including Mr. Solomon and his
predecessor, Lloyd Blankfein. The bank agreed to pay US$2.9 billion
to settle probes into its role in the 1MDB corruption scandal, the
report notes.
About 1MDB
Kuala Lumpur-based 1Malaysia Development Bhd (1MDB) operated as a
government agency. The Company offered financial assistance,
analysis, and advice through investors, corporations, and
consultants to startups and growth companies. 1MDB focused on
investments with strategic value and high multiplier effects on the
economy, particularly in energy, real estate, tourism, and
agribusiness.
As reported in the Troubled Company Reporter-Asia Pacific in June
2015, Reuters relayed that Singapore Police Force has frozen two
bank accounts to help with an investigation in to Malaysia's
troubled state-owned investment fund 1Malaysia Development Bhd
(1MDB), which is being probed by authorities in Malaysia for
financial mismanagement and graft. Reuters said the freezing of
the Singapore bank accounts follows a similar move in Malaysia
where a task force investigating 1MDB said earlier in July that it
had frozen half a dozen bank accounts following a media report that
nearly $700 million had been transferred to an account of
Malaysia's Prime Minister Najib Razak.
The Wall Street Journal reported in July 2015 that investigators
looking into 1MDB had traced close to US$700 million of deposits
moving through Falcon Bank in Singapore into personal bank accounts
in Malaysia belonging to Najib.
The TCR-AP, citing Bloomberg News, reported in November 2015, that
1MDB agreed to sell its power assets to China General Nuclear Power
Corp. for MYR9.83 billion (US$2.3 billion) as the state investment
company moved one step closer to winding down operations after its
mounting debt raised investor concern.
Bloomberg, citing President Arul Kanda in October 2015, related
that the company faced cash-flow problems after a planned initial
public offering of Edra faced delays amid unfavorable market
conditions. The listing plan was later canceled as the company
opted for a sale of the assets, Bloomberg noted.
The TCR-AP, citing The Wall Street Journal, reported in April 2016,
that the company defaulted on a $1.75 billion bond issue,
triggering cross defaults on two other Islamic notes totaling
MYR7.4 billion ($1.9 billion).
Asian Nikkei Review reported in June 2016 that Malaysia has
replaced the board of 1Malaysia Development Berhad with treasury
officials, paving the way for the dissolution of the troubled state
investment fund.
=====================
N E W Z E A L A N D
=====================
TITAN ACQUISITIONCO: Moody's Completes Review, Retains B2 Rating
----------------------------------------------------------------
Moody's Investors Service has completed a periodic review of the
ratings of Titan AcquisitionCo New Zealand Limited and other
ratings that are associated with the same analytical unit. The
review was conducted through a portfolio review discussion held on
January 19, 2021 in which Moody's reassessed the appropriateness of
the ratings in the context of the relevant principal
methodology(ies), recent developments, and a comparison of the
financial and operating profile to similarly rated peers. The
review did not involve a rating committee. Since January 1, 2019,
Moody's practice has been to issue a press release following each
periodic review to announce its completion.
This publication does not announce a credit rating action and is
not an indication of whether or not a credit rating action is
likely in the near future. Credit ratings and outlook/review status
cannot be changed in a portfolio review and hence are not impacted
by this announcement.
Key rating considerations.
Titan AcquisitionCo New Zealand Limited's B2 rating benefits from
the company's leading market position and strong brand awareness in
New Zealand, good business line diversity and strong margins and
free cash flow generation.
The company's rating is constrained by its high financial leverage.
The rating also recognizes the risk of new entrants and disruption
in the company's sector, as well as the company's small absolute
size and geographic concentration in New Zealand.
The principal methodology used for this review was Business and
Consumer Service Industry published in October 2016.
=====================
P H I L I P P I N E S
=====================
PHILIPPINES: Economic Recovery Hinges on Kids Leaving Lockdown
--------------------------------------------------------------
Andreo Calonzo and Ditas B Lopez at Bloomberg News report that for
CK Colindres and her two children, 12 and 2, weekends were always
spent strolling in malls and dining out in the Philippine capital
of Manila. That all changed when the pandemic struck.
They've been cooped up at home since the government ordered minors
to stay indoors to curb virus transmissions, the only country in
Southeast Asia to impose such restrictions, where children and
teens make up over 40% of the population, Bloomberg says.
Bloomberg relates that the 40-year-old mother is among the millions
of parents officials need to go out and spend more, hoping to
reinvigorate a consumer-led economy that plunged into recession
last year. To do that, it's becoming clear the government needs to
lift restrictions on those parents taking their children with
them.
"A big part of the economy doesn't function" when children aren't
allowed out, Economic Planning Secretary Karl Chua said last month,
Bloomberg relays. The 11.5% drop in gross domestic product in the
third quarter could have been shallower by 4 percentage points if
there were no restrictions on family activities, he said. The
government forecasts growth at 6.5% to 7.5% this year.
Half of consumer demand isn't likely to return if the restrictions
on minors remain, Mr. Chua said. Parents are also the largest
contributors to the nation's PHP574 billion ($11.9 billion)
informal dine-out market, including fastfood restaurants, he
added.
Efforts by President Rodrigo Duterte's administration to balance
health and economic risks have been challenged by the emergence of
a more-contagious strain of the coronavirus. His office late on
Jan. 25 reversed a decision announced only on Jan. 22 to lower the
age restrictions, reinstating an order preventing children under 15
from leaving home. Duterte said the move was a precaution against
the new variant and "that order will subsist until such time that
everybody will be safe by the vaccine."
According to Bloomberg, the Philippine policy has been driven by a
concern that children can spread the virus within the extended
households that are common in the country, including to
grandparents or elderly relatives who are most vulnerable.
Bloomberg says the restrictions on minors stand out globally.
Countries including France have kept schools open during their
latest lockdowns, while others like Singapore exempt young children
from mask-wearing mandates. There's mounting concern that isolating
kids will exact a social and mental toll, especially on those from
disadvantaged backgrounds.
Bloomberg notes that the Philippines has the second-highest number
of coronavirus infections in Southeast Asia, with more than 500,000
cases. The nation also has one of the region's deepest
pandemic-induced economic slumps, with recovery momentum expected
to be weaker than its peers due to a more conservative outlook on
fiscal stimulus.
"The example of other countries might shed some light. In
Singapore, where schools reopened relatively quickly after the
circuit breaker period in June, overall retail sales have already
returned to near pre-Covid levels by November," Bloomberg quotes
Euben Paracuelles, Singapore-based economist at Nomura Holdings
Plc, as saying.
"The caveat is that the authorities were strict in implementing the
remaining safe-distancing measures," Paracuelles said. "So
compliance was high, limiting transmissions and allowing further
economic reopening by December."
Spending will improve if the government builds confidence by
controlling the virus outbreak, Bloomberg quotes Dan Roces, chief
economist at Security Bank Corp. in Manila, as saying. "There is a
greater chance that parents will let kids go out if their own
confidence is better."
There's more upside to allowing kids outdoors than just a boost to
the economy, according to Stella Quimbo, a congresswoman
representing Marikina, part of the sprawling Metropolitan Manila,
and a former economics professor at the University of the
Philippines. The capital region accounts for about a third of the
economy and more than half of the nation's coronavirus cases.
"Lifting movement restrictions on the youth will not only help
stimulate the economy, but will also help stimulate their minds and
reduce the risks of mental health problems," the report quotes Ms.
Quimbo as saying. "They have been locked up inside their homes for
so long. We need to balance the problems of Covid and mental
health."
*********
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 2021. 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 ***