/raid1/www/Hosts/bankrupt/TCRAP_Public/210414.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
Wednesday, April 14, 2021, Vol. 24, No. 69
Headlines
A U S T R A L I A
DAVIS CONTRACTING: Second Creditors' Meeting Set for April 20
MEDIGARD LIMITED: Second Creditors' Meeting Set for April 16
SA SERVICES: ASIC Takes Action to Wind Up Firms
WHITE CITY: Second Creditors' Meeting Set for April 29
C H I N A
CHINA HUARONG: Worsening Bond Rout Stokes Market Contagion
LESHI INTERNET: Firm, Founder Each Fined $37MM for Financial Fraud
I N D I A
A.S. BETGERI: CARE Reaffirms B+ Rating on INR3.0cr LT Loan
ANNAPURNA INDUSTRIES: ICRA Keeps B+ Ratings in Not Cooperating
BESTWAYS TRANSPORT: Insolvency Resolution Process Case Summary
C I CAPITAL: CARE Lowers Rating on INR10cr LT Loan to B-
CAMPUS STUDENT: CRISIL Lowers Rating on INR30cr LT NCD to D
CURA HEALTH: CRISIL Moves D Debt Ratings to Not Cooperating
D S TOLL: CARE Reaffirms B Rating on INR217.42cr LT Loan
GURUKRUPA COTTON: CRISIL Assigns B+ Rating to INR9.5cr Cash Loan
INDIA: Businesses in Richest State Choke Under New COVID-19 Curbs
KONARK SYNTHETIC: CRISIL Moves D Debt Ratings to Not Cooperating
KUMARASWAMY MINERAL: CRISIL Withdraws B+ Rating on INR44cr Loans
M VISHWESHWARAYA: CRISIL Assigns B+ Rating to INR25r Long Term Loan
MAHARANA CHAINS: CRISIL Reaffirms B+ Rating on INR12cr Loans
MANIK COMMERCIAL: CRISIL Moves D Debt Ratings to Not Cooperating
NATURE NURSERY: CRISIL Lowers Rating on INR11cr LT Loan to D
NEXUS ELECTRO: Insolvency Resolution Process Case Summary
NUTEC INFOTECH: Insolvency Resolution Process Case Summary
NXTGEN DATACENTER: ICRA Withdraws B+ Rating on INR115cr Loan
NYKA STEELS: CRISIL Moves D Debt Ratings to Not Cooperating
ONEST MILK: CRISIL Withdraws B+ Rating on Long Term Bank Debt
PALLAVI ENTERPRISES: CRISIL Cuts Rating on INR24cr Loans to D
PANKAJ ISPAT: CARE Keeps B- Debt Rating in Not Cooperating
QUALITY EXPORTS: CRISIL Assigns B+ Rating to INR14.30cr Loan
RAGHAV INDUSTRIES: CRISIL Moves D Debt Ratings to Not Cooperating
RAIPUR POLYMERS: Insolvency Resolution Process Case Summary
RNS INFRASTRUCTURE: ICRA Withdraws B+ Rating on INR70cr Loan
SATYAMEV EMINENCE: CARE Lowers Rating on INR25cr LT Loan to B+
SOLAS FIRE: Insolvency Resolution Process Case Summary
SURYA PANEL: CRISIL Reaffirms B- Rating on INR21cr Loans
TIJARIA POLYPIPES: ICRA Assigns B Rating to INR56.27cr LT Loan
UPPER INDIA: CARE Keeps D Debt Ratings in Not Cooperating
VGN PROJECTS: ICRA Withdraws D Outstanding Issuer Rating
S I N G A P O R E
EAGLE HOSPITALITY: Unit to Sell Hotel in Texas for US$18 Million
S O U T H K O R E A
SSANGYONG MOTOR: Seeks to Avert Stock Market Delisting
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A U S T R A L I A
=================
DAVIS CONTRACTING: Second Creditors' Meeting Set for April 20
-------------------------------------------------------------
A second meeting of creditors in the proceedings of Davis
Contracting (WA) Pty Ltd has been set for April 20, 2021, at 10:00
a.m. at the offices of Parmelia Hilton Perth, 14 Mill Street, in
Perth, WA.
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 April 19, 2021, at 5:15 p.m.
Cameron Shaw, Richard Albarran and Sule Arnautovic of Hall Chadwick
Chartered Accountants were appointed as administrators of Davis
Contracting on March 5, 2020.
MEDIGARD LIMITED: Second Creditors' Meeting Set for April 16
------------------------------------------------------------
A second meeting of creditors in the proceedings of Medigard
Limited has been set for April 16, 2021, at 10:00 a.m. at the
offices of Pearce & Heers, Insolvency Accountants, Level 12, 127
Creek Street, in Brisbane, Queensland.
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 April 12, 2021, at 2:00 p.m.
Mark William Pearce and Michael Dullaway of Pearce & Heers were
appointed as administrators of Medigard Limited on Nov. 11, 2020.
SA SERVICES: ASIC Takes Action to Wind Up Firms
-----------------------------------------------
The Australian Securities and Investments Commission (ASIC) has
successfully applied to the Federal Court of Australia to wind up
two NSW-based companies, SA Services & PW Pty Ltd and Orphans Asia
Pty Ltd.
SA Services and Orphans Asia came to ASIC's attention during the
investigation into PW Kitt Co Pty Ltd and Larry Dawson, both the
subject of ASIC action in the Federal Court of Australia last year.
ASIC's application was based on concerns that SA Services and
Orphans Asia allegedly obtained approximately AUD2.4 million in
Australian investor funds through cold-calling Australian consumers
and operating the now defunct website smsfadvisory.com. Neither SA
Services nor Orphans Asia are licensed or authorised to deal in
financial products or provide financial services.
At ASIC's request, the companies passed special resolutions
resolving that their respective companies be wound up by the
Court.
ASIC obtained orders that Michael Hill and Anthony Connelly of
McGrathNicol, the current liquidators of PW Kitt Co, be appointed
as joint and several liquidators of SA Services and Orphans Asia.
ASIC's concerns about Orphans Asia and SA Services arose during its
investigation into Larry Dawson and PW Kitt Co. Larry Dawson is a
director of both PW Kitt Co and Orphans Asia. ASIC's investigation
identified that PW Kitt Co obtained over
AUD7.4 million in Australian investor funds through allegedly
cold-calling and operating the websites smsfadvisory.com and
pwkittco.com. PW Kitt Co held no licence or authority to deal in
financial products or provide financial services.
ASIC has since successfully applied to the Court to wind up and
appoint liquidators to PW Kitt Co. ASIC's action against Larry
Dawson for breaching his duties as a director of PW Kitt Co has
been adjourned pending the hearing and determination of a NSW
Police criminal proceeding against Mr. Dawson.
WHITE CITY: Second Creditors' Meeting Set for April 29
------------------------------------------------------
A second meeting of creditors in the proceedings of White City
Investments Pty Ltd has been set for April 29, 2021, at 2:30 p.m.
at the offices of Worrells Solvency & Forensic Accountants Level 4,
15 Ogilvie Road, in Mount Pleasant, WA.
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 April 28, 2021, at 5:00 p.m.
Mervyn Jonathan Kitay of Worrells Solvency & Forensic Accountants
was appointed as administrator of White City on Feb. 26, 2021.
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C H I N A
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CHINA HUARONG: Worsening Bond Rout Stokes Market Contagion
----------------------------------------------------------
Richard Frost and Rebecca Choong Wilkins at Bloomberg News report
that growing panic over the financial health of one of China's
largest bad-debt managers spilled into the broader market, as
traders circulated a Caixin report that openly considered the
worst-case scenario for the company.
China Huarong Asset Management Co.'s $300 million 3.375% bond due
May 2022 tumbled 13.1 cents on the dollar to 76.1 cents, while a 5%
bond maturing in 2025 fell 9.9 cents to 79.5 cents,
Bloomberg-compiled prices showed. In a commentary dated April 12,
Ling Huawei, managing editor of Caixin Media and Caixin Weekly,
discussed the possibility of a China Huarong bankruptcy, Bloomberg
says.
Bloomberg relates that the selloff spread to other high-yield
Chinese dollar notes, with some property bonds falling by a record.
Asia's investment-grade dollar debt spreads widened as much as 3
basis points, while a gauge of Asia credit risk widened for a
seventh straight day, set for the longest rising streak since
2018.
"Huarong is a $22 billion curve and as a distressed situation it
dwarfs anything that we have seen in the Asia credit market
before," Bloomberg quotes Owen Gallimore, head of trading strategy
at Australia & New Zealand Banking Group, as saying. "This is a
fatal event for a few trading desks and small funds."
Huarong failed to publish its 2020 preliminary results by the March
31 deadline, with Caixin attributing the delay to plans for a
significant financial restructuring. The stock has been suspended
in Hong Kong since April 1, Bloomberg notes. The company has until
the end of the month to release its final earnings report. China
Huarong's biggest shareholder is the country's Ministry of
Finance.
"Market speculation of a restructuring with haircuts for Huarong
International bondholders is heavily damaging investor sentiment,"
Bloomberg quotes Chang Wei Liang, a macro strategist at DBS Bank
Ltd. in Singapore, as saying. "The continued silence of Chinese
authorities on the predicament of a strategic state-owned
institution as large as Huarong is also worrisome, as investors had
anticipated at least a modicum of reassurance."
Chinese investment-grade dollar bond spreads widened by as much as
8 basis points, while prices on the nation's high-yield notes fell
as much as 3 cents on the dollar, Bloomberg discloses citing credit
traders. The CSI 300 Index of stocks added 0.3%, while the yuan was
steady.
China Huarong has been under a shadow since its then-chairman Lai
Xiaomin came under investigation in 2018, Bloomberg recalls. Under
his watch, the company expanded into areas including securities
trading, trusts and other investments, deviating from the original
mandate of disposing bad debt. Lai was put to death earlier this
year for bribery after a brief trial, an unusually harsh sentence
for such a crime.
According to Bloomberg, the company is one of the four state-owned
entities set up by China's government in 1999 to help clean up a
banking system riddled with bad debt. It listed in Hong Kong after
a $2.5 billion initial public offering in 2015.
China Huarong and its subsidiaries have some $42 billion worth of
offshore and local bonds outstanding and 41% of that will come due
by the end of next year, according to Bloomberg-compiled data.
Dollar bonds make up about $22 billion of its outstanding notes.
China Huarong has started trimming non-core assets amid regulatory
pressure to return to its roots, Bloomberg notes. Net income
slumped 92% in the first half of 2020 from a year earlier as the
value of some assets dropped in the wake of the Covid-19 pandemic.
The company's stock market value has tumbled to about $5 billion
from $15 billion when it listed.
China Huarong Asset Management Co., Ltd., together with its
subsidiaries, provides various financial asset management
services.
LESHI INTERNET: Firm, Founder Each Fined $37MM for Financial Fraud
------------------------------------------------------------------
Caixin Global reports that China's securities regulator fined Leshi
Internet Information & Technology Corp. and its fugitive founder
Jia Yueting each CNY240 million (US$36.7 million) for financial
fraud from 2007 to 2016.
Caixin relates that the fine resulted from a regulatory
investigation launched by the China Securities Regulatory
Commission (CSRC) in April 2019 after the company disclosed that
its founder, also the biggest shareholder, was suspected of
violating financial disclosure laws.
The regulator found Leshi committed financial fraud for ten
consecutive years from 2006 to 2017, resulting in false statements
in its initial public offering prospectus in 2010 and private
placement offering in 2016, the CSRC said in a statement April 12,
Caixin relays.
Leshi Internet Information & Technology Corp., Beijing engages in
Internet video, and film and television production and distribution
businesses in China.
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I N D I A
=========
A.S. BETGERI: CARE Reaffirms B+ Rating on INR3.0cr LT Loan
----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of A.S.
Betgeri (ASB), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.00 CARE B+; Stable Reaffirmed;
Facilities Outlook revised from Positive
Short Term Bank
Facilities 4.48 CARE A4 Reaffirmed
Detailed Rationale & Key Rating Drivers
The reaffirmation of ratings assigned to the bank facilities of ASB
continues to be tempered by small scale of operations, working
capital intensive nature of operations, moderate and declining
profit margins, geographical and customer concentration risk,
highly fragmented industry with intense competition from other
players due to tender driven nature of operations and constitution
of the entity as proprietor firm. The rating, however, derives its
strengths from established track record and experienced proprietor
and comfortable capital structure & debt coverage indicators.
Key Rating Sensitivities:
Positive factors:
* Increase in the scale of operations with total operating income
exceeding INR25 crore on a sustained basis.
* Improvement in the PBILDT margin exceeding 10% on a sustained
basis
* Continuation of unexecuted order book position remained 2x of the
TOI for FY20 thereby providing revenue visibility to the entity
Negative factors:
* Deterioration in the capital structure with overall gearing
exceeding 2x on a sustained basis.
* Deterioration in the debt coverage indicators with interest
coverage ratio reaching below 1.5x on a sustained basis.
* Any delay/time or cost overrun in the on-going projects resulting
in sizable decline total operating income in the years going
forward
Detailed description of the key rating drivers
Key Rating Weaknesses:
* Small and fluctuating scale of operations: The overall scale of
operations of the entity remained small marked by total operating
income (TOI) stood in the range of INR9.51 crore to INR17.53 crore
during FY18-FY20. Further, TOI has declined by 14.64% from INR17.53
crore in FY19 to INR14.96 crore in FY20 due to shutdown of
construction activities from March 21, 2020 led by lockdown imposed
by the government to prevent spreading of COVID-19 pandemic.
Moreover, the tangible net worth has also stood low at INR4.58
crore as on March 31, 2020 (vis-à-vis INR4.32 crore as on March
31, 2019) which further limits the financial flexibility of the
entity to an extent.
* Working capital intensive nature of operations: The overall
operations of the entity remained working capital intensive due to
funds blocked I debtors and inventory. Further, the working capital
cycle deteriorated from 80 days in FY19 to 93 days in FY20 mainly
due to increase in inventory period from 73 days in FY19 to 99 days
in FY20 owing huge quantity of raw materials kept at the year-end
to execute the ongoing construction work. However, the same led to
inventory pile up on account of imposition of lockdown across India
from March 21, 2020. Further, collection period has also elongated
to 69 days in FY20 from 63 days in FY19 due to delay in bills
realization as the same has not took place and resulted in delay of
clearing the same from government authorities. Hence, the creditors
period has also increased to 74 days in FY20 from 56 days in FY19.
The average utilization of the working capital limit stood at ~70%
for the last 12 months ending February 2021.
* Moderate and declining profitability margins: The PBILDT margin
has decreased from 8.26% in FY19 to 6.31% in FY20 due to the
proportionate increase in raw materials cost along with increase in
labor cost owing to higher requirement of the same. However, The
PAT margin has improved from 3.01% in FY19 to 4.33% in FY20 due to
the significant reduction in the interest cost during the year on
the back of lower utilization of working capital limits during the
year. Nevertheless, the profit margins continue to remain moderate
with PBILDT and PAT margins stood in the range of 6.31% to 10.82%
and 3.01% to 4.33% respectively during FY18-FY20.
* Moderate order book position along with high customer and
geographical concentration risk: The firm has an order book of Rs.
45.84 crore whose outstanding order-book position is INR27.74 crore
as on February 28, 2021 and same likely to complete by July 2022
thereby providing short term revenue visibility to the entity.
Further, the firm receives about 100% of the work orders from
Karnataka Government resulting in high customer and geographic
concentration risk. Hence, any changes in the budgetary allocations
will result the revenue visibility to the entity.
* Highly fragmented industry with intense competition from other
players due to tender based nature of operations: The firm receives
100% work orders from government organizations. All these are
tender-based and the revenues are dependent on the firm's ability
to bid successfully for these tenders. Profitability margins come
under pressure because of competitive nature of the industry.
However, the proprietor long industry experience around two decades
mitigates this risk to some extent. Nevertheless, there are
numerous fragmented & unorganized players operating in the segment
which makes the civil construction space highly competitive.
* Constitution of the entity as proprietor firm with inherent risk
of withdrawal of capital: Constitution as a proprietorship has the
inherent risk and possibility of withdrawal of capital at a time of
personal contingency which can adversely affect the capital
structure of the firm. Furthermore, proprietorships have restricted
access to external borrowings as creditworthiness of the proprietor
would be a key factor affecting the credit decision of lenders.
Key Rating Strengths:
* Established track record and experienced proprietor: ASB was
established in the year 1995, promoted by Mr. Ashfaq Ahmed Betgeri.
He is a qualified MBA and has more than two decades of experience
in the civil construction industry. Mr. Ashfaq Ahmed Betgeri is
actively involved in the day to day operations of the firm. Over
the years of existence in the industry proprietor has established
strong marketing connects leading to continuous orders receipts
from its customers.
* Comfortable capital structure and debt coverage indicators: The
capital structure marked by overall gearing ratio albeit
deteriorated and stood comfortable at 0.85x as on March 31, 2020
(vis-à-vis 0.32x as on March 31, 2019) on account of higher
utilization of working capital limits as on balance sheet date
thereby total debt level increased from INR1.39 crore as on March
31, 2019 to INR3.91 crore as on March 31, 2020. The debt coverage
indicators marked by total debt to GCA deteriorated to 5.62x in
FY20 (vis-à-vis 2.27x in FY19) due to the increase in overall debt
level. Further interest coverage has improved to 4.53x in FY20 from
2.43x in FY19 due to lower interest cost incurred during the year.
Liquidity analysis: Stretched
Liquidity position of the entity remained stretched marked by
tightly matched cash accruals against debt repayment obligations.
The free cash & liquid investments stood low at INR0.15 crore as of
March 31, 2020 (vis-a-vis INR0.63 crore as on March 31, 2019). Its
average utilization of the working capital limit remained higher at
~80% during past twelve months ended February 28, 2021. However,
the current ratio and quick ratio stood comfortable at 4.04 times
and 2.52 times as of March 31, 2020 (vis-a-vis 3.70 times and 3.40
times as on March 31, 2019).
A.S Betgeri (ASB) was established in the year 1995 promoted by Mr.
Ashfaq Ahmed Sayedgouse Betgeri. The firm is engaged in
construction of buildings for Karnataka state government. The firm
purchases the raw material like cement, steel, sand and concrete
etc., from the local traders. The firm receives the work orders
directly from the state department of Karnataka government through
tenders. ASB operates through its controlling office located at
Dharwad, Karnataka.
ANNAPURNA INDUSTRIES: ICRA Keeps B+ Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Annapurna
Industries in 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 1.45 [ICRA]B+ (Stable) ISSUER NOT
Term Loan COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Fund based 6.00 [ICRA]B+ (Stable) ISSUER NOT
Cash Credit COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Non-fund 7.00 [ICRA]A4 ISSUER NOT
Based Bank COOPERATING; Rating continues
Guarantee 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.
Established in 2006, Annapurna Industries (AI) is involved in the
milling of non-basmati rice and processing of silky sortex rice
with an installed capacity of 76,800 metric tonne per annum (MTPA).
Besides, the firm is involved in milling of paddy on job-work basis
for Food Corporation of India (FCI). The manufacturing facilities
of the firm are located in the district of Rajnandgaon,
Chhattisgarh.
BESTWAYS TRANSPORT: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Bestways Transport (India) Private Limited
Gale House 5 NH/87 NIT
Faridabad 121001
Insolvency Commencement Date: March 26, 2021
Court: National Company Law Tribunal, Chandigarh Bench
Estimated date of closure of
insolvency resolution process: September 21, 2021
(180 days from commencement)
Insolvency professional: Khushvinder Singhal
Interim Resolution
Professional: Khushvinder Singhal
House no. 399, Sector-12-A
Panchkula 134112
E-mail: kvsinghal@gmail.com
- and -
SCO-818, 1st Floor
NAC, Manimajra
Chandigarh 160101
E-mail: cirp.bestways@gmail.com
Mobile: +91-99140-30030
+91-73411-05243
Last date for
submission of claims: April 14, 2021
C I CAPITAL: CARE Lowers Rating on INR10cr LT Loan to B-
--------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of C I
Capital Private Limited (CICPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated January 28, 2020, placed the
rating(s) of CICPL under the 'issuer non-cooperating' category as
CICPL had failed to provide information for monitoring of the
rating. CICPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone calls
and email dated December 31, 2020, January 18, 2021 and January 20,
2021. In line with the extant SEBI guidelines, CARE has reviewed
the rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating assigned to the bank facilities of CICPL have been
revised on account of non-availability of latest operational and
financial information as well as CARE's inability to carry out due
diligence exercise with lenders.
The rating also continues to remain constrained on account of its
limited track record of operations, its modest loan portfolio the
geographic and borrower concentration of its business along with
modest profitability.
The rating, however, derives strength from the experience of its
promoters, adequate capitalization and exposure to secured loan
portfolio.
Detailed description of the key rating drivers
At the time of the last rating on January 24, 2020 the following
were the rating strengths and weaknesses (updated for FY20 audited
financials available from Ministry of Corporate Affairs):
Key Rating Weaknesses
* Limited track record of operations and modest scale of
operations: CICPL commenced regular lending operations in July 2018
and hence has limited track record of operations. Therefore, its
scale of operations was modest with an outstanding loan portfolio
of INR11.41 crore as of March 31, 2020 spread over its two products
viz. vehicle finance and loans against property (LAP).
* Regional concentration of portfolio; along with borrower
concentration: The operations of CICPL are currently restricted to
the customers of its group entities which have business operations
in Bhopal (Madhya Pradesh) and hence its operations are regionally
concentrated. Moreover, the borrower profile of the company is also
concentrated.
* Modest profitability in FY20: CICPL's profitability remained
modest in FY20, with net interest margin (NIM) of 7.83% and Return
on Total Assets (ROTA) of 0.94% during FY20. PAT of the company
improved to 0.09 crore in FY20, as against PAT of INR0.03 crore in
FY19; however, continued to remain low.
* Deterioration in overall gearing: CICPL's overall gearing
deteriorated from 1.50x as on March 2019 end to 4.53x as on March
2020 end as its entire incremental loan portfolio during FY20 has
been funded through additional debt.
Key Rating Strengths
* Experienced promoters: Mr. Rakesh Malik, director of CICPL has an
experience of more than three decades in autodealership and real
estate business and is ably supported by his wife Mrs. Anju Malik
in the strategic and administrative decision making for CICPL.
* Secured loan portfolio: CICPL is primarily engaged in providing
vehicle loans and LAP with a loan to value ratio of 75% (as per
CARE review conducted in January 2019). Entire loan portfolio of
CICPL is secured by way of mortgage of the vehicle being financed
or property against which loan is given and hence provides comfort
for the lending business.
* Adequate capitalization: As on November 30, 2018, CICPL had
adequate capitalization with a capital adequacy ratio (CAR) of over
100% due to limited lending operations.
CICPL, incorporated in 1996 as Penny Care Leasing and Finance
Private Limited, is registered with Reserve Bank of India (RBI) as
a Non-deposit taking Non-Banking Financial Company (NBFC-ND). In
2017, Mr. Rakesh Malik of CI group of Bhopal took over the company
and rechristened it to its present name. The company commenced
regular lending operations from July 2018. CICPL operates in Bhopal
region in Madhya Pradesh and is primarily engaged in the business
of providing vehicle finance (mainly four wheelers) and LAP.
CAMPUS STUDENT: CRISIL Lowers Rating on INR30cr LT NCD to D
-----------------------------------------------------------
CRISIL has downgraded the rating on the bank facilities of Campus
Student Communities Private Limited to 'CRISIL D/Issuer Not
Cooperating' from 'CRISIL B+/Stable/Issuer Not Cooperating.'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Non Convertible 30.0 CRISIL D (ISSUER NOT
Debentures LT COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with Campus for obtaining
information through letters and emails dated May 21, 2020, May 27,
2020 and December 28, 2020 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other.' market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component'.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of Campus. This restricts CRISIL
Ratings' ability to take a forward looking view on the credit
quality of the entity. CRISIL Ratings believes that rating action
on Campus is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, CRISIL has downgraded the
rating on the bank facilities of Campus to 'CRISIL D/Issuer Not
Cooperating' from 'CRISIL B+/Stable/Issuer Not Cooperating' as
there are delays in the repayment of the Non-convertible debentures
for the quarter ended March 31, 2021
Campus was incorporated in 2016 to take over operations of Jain
College Hostel, a proprietorship concern of Mr. Saket Jalan, set up
in 2003. The company currently operates 26 hostels in Bengaluru and
Mumbai. Mr. Saket Jalan and Mr. Sanjay Jalan manage operations.
CURA HEALTH: CRISIL Moves D Debt Ratings to Not Cooperating
-----------------------------------------------------------
CRISIL Ratings has migrated the ratings on bank facilities of Cura
Health Care Private Limited (CHPL; part of the Cura group) to
'CRISIL D/CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 12.5 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 25 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Long Term 0.5 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with CHPL for
obtaining information through letters and emails dated December 23,
2020 and January 29, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of CHPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on CHPL
is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the rating on
bank facilities of CHPL to 'CRISIL D/CRISIL D Issuer not
cooperating'.
For arriving at the ratings, CRISIL Ratings has combined the
business and financial risk profiles of CHPL and its subsidiaries:
Icure Technologies Pvt Ltd, Pacsmart Solutions Pvt Ltd, DE
Healthcare Pvt Ltd, Concept Integrations (India) Pvt Ltd, Adonis
Medical Systems Pvt Ltd (Adonis), and IVES Healthcare Pvt Ltd
(Ives). This is because all these entities, collectively referred
to as the Cura group, are in the same business, under a common
management, and have financial links.
About the Group
The Cura group trades and manufactures medical equipment and
devices. CHPL, set up in 2001, installs and trades in medical
imaging equipment. It also manufactures digital radiography
equipment and critical care products.
The group's subsidiaries manufacture, trade, and service medical
equipment and healthcare devices in the imaging (CT, MRI,
mammography, and digital radiography), critical care (patient
monitoring and nephrology) and x-ray segments.
D S TOLL: CARE Reaffirms B Rating on INR217.42cr LT Loan
--------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of D S
Toll Road Limited (DSTRL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 217.42 CARE B; Stable Reaffirmed
Detailed Rationale & Key Rating Drivers
The reaffirmation of rating assigned to the long-term bank
facilities of DSTRL reflects marginal growth in toll revenues in
9MFY21 largely attributed to Covid related disruptions, inadequate
built-up of reserves required for Major Maintenance activity work
to be carried out in FY21-FY22 as well as stretched liquidity
position against ballooning repayment structure of the loan with
large repayments due from FY22 to FY24, exposure to the interest
rate risk on borrowed capital and inherent revenue risk related to
toll-based projects arising on account of the sustainability of
traffic and toll collections over the tenure of the loan facility.
Exposure to weak sponsor i.e. Reliance Infrastructure Ltd (rated
CARE D, Issuer Not cooperating) thereby restricting the
recoverability of outstanding loans aggregating INR64 crore
advanced by DSTRL is other credit weakness.
However, the rating favorably factors in the operational nature of
project with track record of over eleven years, favorable location
of the road stretch on NH-7 with no significant competing route,
moderate tail period and presence of toll collection and repayment
mechanism with funded Debt Service Reserve Account (DSRA) and Major
Maintenance Reserve Account (MMRA). CARE notes that the settlement
process towards the arbitration claims raised to NHAI are in
advanced stages. Given the high repayment obligations in FY22,
settlement of the claims both in time as well as at envisaged
quantum are crucial from credit perspective and constitutes key
rating monitorable.
Rating Sensitivities
Positive Factors - Factors that could lead to positive rating
action/upgrade:
* Significant improvement in the toll collection resulting into
strong Debt/PBILDT ratio of below 2.75x
* Receipt of arbitration award from the authority resulting in debt
reduction at Company level
Negative Factors- Factors that could lead to negative rating
action/downgrade:
* Non-maintenance of road as per the required specifications
attracting penalties from the authorities
* Significant variations in the toll performance as compared to
estimates
* Non-adherence of the financial covenants
Detailed description of the key rating drivers
Key Rating Weaknesses
* Weak credit profile of the promoter R-Infra: DSTRL is a project
specific special purpose vehicle promoted by R-Infra. R-Infra was
one of the established companies in infrastructure development in
the country, however, its weakened credit profile over last few
years as reflected in debt servicing delays does not lend comfort
to DSTRPL.
* Long standing loans and advances in the form of ICDs extended to
R Infra exposes the company to liquidity risks: DSTRL had extended
ICDs (Inter-corporate deposits) amounting to INR64 crore to R Infra
which continue to remain outstanding as on March 31, 2020 and the
poor credit profile of R Infra exposes DSTRL to risks associated
with recoverability of the same. Further, this ICDs have no fixed
repayment schedule.
* Higher Operation and Maintenance risk along with inadequate MMRA:
As per the industry practice, the company shall undertake major
maintenance activity once in every five years. The major
maintenance expenditure will be spread over a period of two years.
The company conducted its first MME in FY16. The next MME was due
in FY21. The company did not carry out any substantial MME in FY21
and hence is expected to do the entire work in FY22. The estimated
budget of INR12 lakh per lane Km translates to a total outflow of
INR25.44 crore. As on March 25, 2021, the company has maintained a
MMRA balance of INR6.65 crore, which is significantly low.
Unfavorable or lower than estimated claim settlement will require
the company to utilize the Free cash reserves. Any change in
quantum of MME shall have significant influence on the cash flows
available for debt servicing.
* Interest rate risk: DSTRL's cash flows are exposed to interest
rate risk. This essentially emanates from the fact that over the
life of the concession agreement, the interest on debt component
will be reset periodically. The possibility of an increase in the
rate over the tenure of the loan exposes the cash flows to interest
rate risk which could impact the cash flows and therefore the debt
coverage indicators of DSTRL. The loan has a ballooning repayment
schedule with large portion scheduled to be payable in FY22 to
FY24. Additionally, there is a refinance risk as the concession
period ends in July 2026 with a short tail period of 22 months.
* Revenue risk associated with inherent nature of toll-based
projects: Given the inherent nature of toll-based projects, DSTRL
is exposed to the inherent revenue risks arising from traffic
fluctuations and toll rate revision translating into unpredictable
cash inflows. The traffic has grown moderately at a CAGR of 3.56%
during FY11-FY20 signifying the traffic growth has matured.
Key Rating Strengths
* Favorable location stretch with no significant competing route:
DSTRL operates toll road covering stretch of 53 km from Dindigul to
Samyanallore section on National Highway (NH-7) in state of Tamil
Nadu. The district primarily has agro based, textile spinning and
leather tanning industries. This district is bound by Erode,
Tirupur, Karur and Trichy districts on the North, by Sivaganga and
Tiruchi District on the East, by Madurai district on the South and
by Theni and Coimbatore Districts and Kerala State on the West. NH
-7 is one of the prime arterials of the country, connecting extreme
south end of the country, with central and northern parts of the
country. The location of the stretch is favorable as the alternate
route is a village road with relatively poor riding quality.
* Operational project with improving toll collection: The company
started collecting toll from September 29, 2009. It has an
operational track record of more than eleven years. The toll
revenue increased by 3.28% to INR72.48 crore in FY20 as compared to
INR70.31 crore in FY19 primarily due to inflation-linked rate
revision. During 9MFY21, the toll revenue de-grew by 13% Y-o-Y to
INR44.69 crore, registering an average daily toll collection of
INR17.46 lakh per day. The 9MFY21 traffic data witnessed decline of
around 22% on Y-o-Y basis. The company's average passenger and
commercial traffic ratio stood at 65:35 in past years. During FY20,
DSTRL witnessed an increase in traffic volumes (on AADT basis) by
around 3.81% Y-o-Y growth led by 5.87% growth in the passenger
traffic and negligible growth (0.5%) in commercial traffic. The
toll revenue grew marginally by 3.28% due to revision in toll rates
in the month of September 2019 and higher growth in passenger
traffic as compared to commercial traffic.
* Moderate Tail period: Considering the request made by the
company, the lenders have granted the moratorium of 6 months from
the period March 1, 2020 to August 31, 2020, for principal and
interest amount. The revised repayment schedule ends on September
30, 2024. The project has a concession period of 20 years ending
July 29, 2026, resulting in a moderate tail period of 22 months as
against 28 months till last year. Debt /PBILDT for FY20 stood at
3.81X.
* Creation of Debt Service Reserve Account (DSRA) and Major
Maintenance Reserve Account (MMRA): The company is required to
maintain minimum DSRA of INR15 crore and equivalent to following 1
quarter of debt servicing requirement. The company maintains funded
DSRA for one quarter debt obligations (interest and principal) and
MMRA in the form of FD with the escrow bank. As of March 25, 2021
DSRA balance of INR16.36 crore and MMRA to the extent of INR6.65
crore were maintained. In view of the inherent risks related to
toll performance, maintenance of such reserves will be crucial to
absorb any temporary cash flow mismatches.
* Timely resolution of claim/ arbitration award from NHAI, crucial:
The company has filed claims with NHAI amounting to INR147crore
which is under arbitration. The case will be settled through
conciliation process. As of March 2021, the conciliation process
has been initiated and the company expects the hearing to be
scheduled by April 2021 and subsequently receipt of the settlement
proceeds (~Rs.90-100 crore expected by DSTRL) within two months.
These proceeds shall be used to partly prepay the debt and fund the
periodic maintenance expenses due in FY22. Timely receipt of the
same at envisaged level is a key rating sensitivity.
Liquidity: Stretched
As on March 25, 2021, the company has a cash and bank balance of
INR27.8 crore, DSRA balance of INR16.36 crore and MMRA balance of
INR6.65 crore. The company has repaid its debt obligation for
Q4FY21. The repayment obligations for Q1FY22 is INR17.37 crore
(principal and interest). Further, the company also undertakes
major maintenance work once in every five years. The second phase
of major maintenance work was due in FY21. No substantial major
maintenance expenditure has been incurred in FY21 which is likely
to result in significant cash outgo in FY22.
DS Toll Road Limited (DSTRL) is a Special Purpose Vehicle (SPV)
promoted by Reliance Infrastructure Limited (R Infra; rated CARE
D/Issuer Not Cooperating) for construction of the toll road
covering stretch of 53 km from Dindigul to Samyanallore section on
National Highway (NH-7) in state of Tamil Nadu on
Build-Operate-Transfer (BOT) basis. The project involved widening
of two lanes into four laning dual carriageway facility. The
company entered into the Concession Agreement (CA) on January 30,
2006 with National Highway Authority of India (NHAI, rated CARE
AAA; Stable) for a period of 20 years ending July 29, 2026. The
total cost of the project was INR428 crore which was funded by
sponsor equity of INR65 crore; grant paid by NHAI INR31 crore and
balance debt. The road became operational from September 29, 2009.
GURUKRUPA COTTON: CRISIL Assigns B+ Rating to INR9.5cr Cash Loan
----------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the
long-term bank facility of Gurukrupa Cotton and Oil Industries
(GCOI).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9.5 CRISIL B+/Stable (Assigned)
The rating reflects the working capital-intensive operations of the
firm and its weak financial risk profile. These weaknesses are
partially offset by the extensive experience of the promoters in
the textile industry.
Analytical Approach
Unsecured loans from the promoters have been treated as 75% equity
and 25% debt as they are subordinated to bank debt and are expected
to remain in the business over the medium term.
Key Rating Drivers & Detailed Description
Strengths:
* Working capital-intensive operations: Gross current assets (GCAs)
were at 107-190 days over the three fiscals ended March 31, 2020,
because of large inventory in the business. GCAs are estimated at
120 days as of March 31, 2021.
* Weak financial risk profile: The financial risk profile is
constrained by high gearing of and total outside liabilities to
adjusted networth ratio of 1.54 times and 1.70 times, respectively,
as of March 31, 2020. The leverage will remain high over the medium
term. Debt protection measures have been weak due to low accrual of
INR9-14 lakh from operations (estimated at INR10 lakh in fiscal
2021). The interest coverage and net cash accrual to total debt
ratio were at 1.14 times and 0.01 time, respectively, for fiscal
2020, and are expected at similar levels over the medium term.
Weakness:
* Extensive industry experience of the promoters: The promoters
have experience of over 12 years in the textile (cotton ginning)
industry and have developed an understanding of the market dynamics
and built relationships with suppliers and customers.
Liquidity: Stretched
Bank limit utilization was moderately high at 85% on average for
the 12 months through January 2021. Cash accrual is expected over
INR10 lakh against no term debt obligation over the medium term.
Current ratio was moderate at 1.59 times as on March 31, 2020.
Outlook: Stable
CRISIL Ratings believes GCOI will continue to benefit from the
extensive experience of its promoters and established relationships
with clients.
Rating Sensitivity factors
Upward factors
* Sustained improvement in profitability leading to significant
increase in cash accrual
* Improvement in the interest coverage over 1.5 times
Downward factors
* Decline in operating profitability below 2%
* Substantial increase in working capital requirement weakening
liquidity
Established in 2008, GCOI gins and presses raw cotton and crushes
cotton seeds at its facility in Rajkot, Gujarat.
INDIA: Businesses in Richest State Choke Under New COVID-19 Curbs
-----------------------------------------------------------------
Reuters reports that retailers, restaurants and theatres in India's
richest state are reeling under the impact of harsh restrictions
imposed last week by authorities scrambling to curb a resurgence in
COVID-19 cases.
According to Reuters, the western state of Maharashtra, home to
India's financial capital Mumbai, has been the worst hit in the
pandemic, accounting for about a quarter of the country's 13.5
million case load.
Last week, the local government shut down restaurants, bars, gyms,
theatres and non-essential stores in a blow to businesses that had
barely recovered from the nationwide lockdown last year, Reuters
says.
Reuters says that after closing for more than eight months,
theatres in Maharashtra reopened in November despite sporadic
Bollywood releases and capacity restrictions.
But with the new surge in cases and the spectre of more curbs,
theatre owners said they may never recover from the losses and be
forced to shut down.
"It's the final nail in the coffin," Reuters quotes Sharad Doshi,
vice-president of the Cinema Owners and Exhibitors Association of
India, as saying. "We have no choice but to perish."
Reuters relates that Doshi and other business owners have called on
the government provide support through tax waivers and subsidies on
rent to prevent the crisis from worsening.
India reported 168,912 new infections on April 12, inching past
Brazil, with a total of 13.53 million cases, data compiled by
Reuters shows. India is now the second-most affected country after
the United States that is grappling with 31.2 million cases.
With barely 4% of more than 1.3 billion people in India estimated
to have been vaccinated, experts said the COVID crisis in the
country could have a long way to go.
Maharashtra, one of India's most urbanised and industrialised
states, accounts for nearly 15% of the country's gross domestic
product and is crucial for its economic recovery, Reuters notes.
According to Reuters, the Confederation Of All India Traders
estimated traders in Maharashtra would lose about INR1 trillion
($13.34 billion) during a month-long lockdown.
Reuters relates that the state has also suffered the most deaths in
India's COVID-19 outbreak, and as cases continue to surge, sources
said authorities were considering shutting down some industries and
restricting public transport.
"One month (of lockdown) is equivalent to about $5 billion of
revenue for retailers from just Maharashtra," Kumar Rajagopalan,
CEO of the Retailers Association of India, told Reuters. "We are
talking about 1.2 million stores and 5 million jobs."
Rajagopalan said store shutdowns will hit sectors such as
manufacturing, distribution and banking and have a snowball effect
on the economy, Reuters relays.
Restaurants and bars in Maharashtra had already felt the pinch as
the state mandated a daily curfew after 8:00 p.m. - prime time for
eateries to rake in revenues - before shuttering them completely
last week.
KONARK SYNTHETIC: CRISIL Moves D Debt Ratings to Not Cooperating
----------------------------------------------------------------
CRISIL Ratings has migrated the ratings on bank facilities of
Konark Synthetic Limited (KSL) to 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 19.25 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Letter of Credit 8.75 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with KSL for
obtaining information through letters and emails dated March 9,
2021 and March 15, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of KSL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KSL
is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the rating on
bank facilities of KSL to 'CRISIL D/CRISIL D Issuer not
cooperating'.
KSL, incorporated in 1984, manufactures specialty yarn and fabrics;
trades in processed fabric; and undertakes job work for readymade
garments. The company has three facilities - a yarn unit in
Silvassa, a fabric unit in Sarigram (Gujarat) and a garment
manufacturing unit in Bengaluru. Mr. Prakash Dalmia and Mr. Ram
Tibrewala are the promoters.
KUMARASWAMY MINERAL: CRISIL Withdraws B+ Rating on INR44cr Loans
----------------------------------------------------------------
CRISIL Ratings has reaffirmed its ratings on the bank facilities of
Sri Kumaraswamy Mineral Exports Private Limited (SKMEPL) and
subsequently withdrawn the rating at the company's request and on
receipt of a no-objection certificate from its banker. The rating
action is in line with the withdrawal policy of CRISIL Ratings for
bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Term Loan 43 CRISIL B+/Stable (Rating
Reaffirmed and Withdrawn)
Term Loan 1 CRISIL B+/Stable (Rating
Reaffirmed and Withdrawn)
SKMEPL, set up in 1992 and based in Bellary, Karnataka, is promoted
and managed by Mr. Shantesh Gureddi, Mr. Ravindranath Alva, and Mr.
Bhavani Prasad. It has acquired iron ore mines on lease from the
Government of Karnataka.
M VISHWESHWARAYA: CRISIL Assigns B+ Rating to INR25r Long Term Loan
-------------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the
long-term bank facility of Sir M Vishweshwaraya Associates (SMVA).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 25 CRISIL B+/Stable (Assigned)
The rating reflects the firm's small scale of operations and
average financial risk profile. These weaknesses are partially
offset by the extensive experience of the promoters in
education-related services.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations: Business risk profile is constrained
by small scale in the intensely competitive education services
segment. The firm has registered revenue of INR6.83 crore in fiscal
2020. Revenue is highly dependent on the performance of the Sir M
Vishweshwaraya Academy (Trust), to which it has let out hostel
buildings.
* Average financial risk profile: Networth is modest at INR11.79
crore and gearing is 2.36 times in fiscal 2020. Debt protection
metrics are expected to remain average, as indicated by interest
coverage and net cash accrual to adjusted debt ratios of 1.32 times
and 0.04 time, respectively, in fiscal 2021.
Strengths:
* Extensive industry experience of the promoters: SMVA's promoters
have been engaged in the education and allied segments since 2009.
The promoters have an established position in Davangere, Karnataka,
in the education industry. Benefits from the established regional
presence in the education sector should continue.
Liquidity: Stretched
Cash accrual is expected to be around INR1.00 crore against term
debt obligation of INR1.20 crore for fiscal 2021. The firm has
availed INR4.80 crore of Covid-19 lines under the credit guarantee
scheme, which will be a liquidity buffer. The promoters have
infused INR0.40 crore till August 2021 and are expected to continue
supporting the business over the medium term. Current ratio was low
at 0.8 time as of March 31, 2020.
Outlook Stable
CRISIL Ratings believes SMVA will benefit from the extensive
industry experience of its promoters.
Rating Sensitivity factors
Upward factors
* Sustained improvement in scale of operations and stable operating
margin, leading to higher cash accrual
* Improvement in the financial risk profile, as reflected in
gearing below 1.5 times
Downward factors
* Decline in net cash accrual to below INR1.00 crore on account of
decline in revenue or operating profit
* Large, debt-funded capital expenditure resulting in weakening of
the financial profile
Established in 2011, SMVA provides hostel accommodation to the
students of Sir M Vishweshwaraya Academy at Davangere, Karnataka.
The key promoters are Mr. S J Sreedhar and Mr. J Padmanabha.
MAHARANA CHAINS: CRISIL Reaffirms B+ Rating on INR12cr Loans
------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on the
long-term bank facilities of Shri Maharana Chains (SMC).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 2 CRISIL B+/Stable (Reaffirmed)
The lockdown and other measures taken by the central and various
state governments towards containment of COVID-19 are expected to
have a moderate impact on the business risk profile of SMC.
However, there has been recovery in sales from August 2020 driven
by increase in gold prices and festive season demand. The firm was
able to achieve sales of around INR83 crore from April 2020-
February 2021. Additional bank lines and timely funding in the form
of unsecured loans from proprietor and related parties is expected
to support liquidity over the medium term.
The rating continues to reflect susceptibility of operating
performance to volatility in gold prices and intense competitive
pressure in the domestic jewellery segment and its below-average
financial risk profile. These weaknesses are partially offset by
the proprietor's extensive experience in the gold jewellery
business.
Analytical Approach
Unsecured loans of INR1.31 crore as on March 31, 2020 have been
treated as debt in absence of track record of non-withdrawal.
Key Rating Drivers & Detailed Description
Weaknesses:
* Susceptibility of operating performance to volatility in gold
prices and intense competitive pressure in the domestic jewellery
segment: Intense competition, volatility in gold prices and
fragmented nature of the jewellery industry with large number of
players has constrained operating margins in the range of 1.2-3.3%
over the last 4 years ended fiscal 2020. The margins are expected
to remain in the similar range over the medium term.
* Below-average financial risk profile: Small net worth and high
total outside liabilities to adjusted networth (TOL/ANW) (INR2.6
crore and 5.1 times estimated as on March 31st 2021) along with
moderate interest coverage ratio at 1.27 times estimated for fiscal
2021 represents below average financial risk profile.
Strength:
* Proprietor's extensive experience in the gold jewellery business:
Decade-long experience of the promoter, Mr. Chunasingh Dasana, in
the gold jewellery industry, and their longstanding relationships
with customers and suppliers have helped the firm successfully
navigate business cycles over the years and establish its market
position. Benefits from the extensive industry experience of the
promoters would continue over the medium term
Liquidity: Poor
Cash accruals of the firm is expected to be modest at around
INR20-30 lakhs for fiscal 2021 and fiscal 2022 against repayment
obligation of INR22 lakhs in fiscal 2022. The firm has fund based
bank lines of INR10 crore which is utilised to the tune of 90% over
the last 12 months ended January 2021. The firm has also availed
INR1.32 crores under Covid-19 government emergency credit scheme.
CRISIL Ratings has also taken into cognizance the moratorium on
interest granted by the banker for six months ending August 31,
2020, as permitted by the Reserve Bank of India. Timely funding
from proprietor is expected to support liquidity of the firm.
Outlook Stable
CRISIL Ratings believes the firm will continue to benefit from its
established presence in the gold jewellery industry, supported by
its proprietor's extensive experience and established relations
with suppliers and customers.
Rating Sensitivity factors
Upward factor
* Improvement in operating margin and stable revenues leading to
cash accruals of over INR60 lakhs
* Sharp improvement in financial risk profile
Downward factor
* Deterioration in financial risk profile especially interest
coverage below 1.1 time
* Significant capital withdrawal or large debt-funded capex
Set up in 2006 and promoted by Mr Chunasingh Dasana, SMC
manufactures gold chains at its facility in Mumbai.
MANIK COMMERCIAL: CRISIL Moves D Debt Ratings to Not Cooperating
----------------------------------------------------------------
CRISIL Ratings has migrated the ratings on bank facilities of Manik
Commercial Private Limited (MCPL) to 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Long Term Loan 4.9 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Cash 0.25 CRISIL D (ISSUER NOT
Credit Limit COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with MCPL for
obtaining information through letters and emails dated December 23,
2020 and January 29, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MCPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MCPL
is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the rating on
bank facilities of MCPL to 'CRISIL D Issuer not cooperating'.
MCPL incorporated in 1996 was primarily engaged in trading of
various agriculture products like wheat, maize, jute etc. The
company started the commercial production of its rice mill in the
current fiscal year having a manufacturing capacity of 20 tonnes
per day.
NATURE NURSERY: CRISIL Lowers Rating on INR11cr LT Loan to D
------------------------------------------------------------
CRISIL Ratings has downgraded the rating on the long term bank
facility of Nature Nursery (NN) to 'CRISIL D Issuer Not
Cooperating' from 'CRISIL B+/Stable Issuer Not Cooperating', as
there are delays in repayment of term loan.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 11 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with NN for obtaining
information through letters and emails dated March 9, 2021 and
March 15, 2021 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of NN, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on NN is
consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, CRISIL Ratings has
downgraded the rating on the long term bank facility of Nature
Nursery (NN) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL
B+/Stable Issuer Not Cooperating', as there are delays in repayment
of term loan.
Established in 2008, NN, a partnership concern, is one of the
largest nurseries in Central India spread over 24 acres of land
offering wide range of plants and garden accessories. The firm is
based in Indore, Madhya Pradesh.
NEXUS ELECTRO: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Nexus Electro Steel Limited
202, Shivalaya, Block C
16 Ethiraj Salai
Egmore Chennai 600008
Insolvency Commencement Date: March 30, 2021
Court: National Company Law Tribunal, Chennai Bench
Estimated date of closure of
insolvency resolution process: September 26, 2021
(180 days from commencement)
Insolvency professional: Mr. MathurSabhapathy Viswanathan
Interim Resolution
Professional: Mr. MathurSabhapathy Viswanathan
15/35, Musafer Jung Bahadur Street
Triplicane, Chennai 600005
E-mail: msv8200@gmail.com
Last date for
submission of claims: April 13, 2021
NUTEC INFOTECH: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Nutec Infotech Private Limited
B-601/602, Siddhi Vinayak Tower-B
BH. DCP Office
Nr. Adani Vidhy Mandir
Off S.G. Highway
Makarba, Ahmedabad 380051
Gujarat, India
Insolvency Commencement Date: March 24, 2021
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: September 20, 2021
(180 days from commencement)
Insolvency professional: Manish S. Buchasia
Interim Resolution
Professional: Manish S. Buchasia
306, "Gala Mart"
Nr. Sobo Centre
Before Safal Parisar
S Bopal Main Rd
Bopal, Ahmedabad
Gujarat 380058
E-mail: manishbuchasiacs@gmail.com
Tel: 09327916394
Last date for
submission of claims: April 19, 2021
NXTGEN DATACENTER: ICRA Withdraws B+ Rating on INR115cr Loan
------------------------------------------------------------
ICRA has withdrawn the rating of [ICRA]B+ with a stable outlook
outstanding for the INR115.00 crore line of credit of Nxtgen
Datacenter and Cloud Technologies Private Limited. The rating is
withdrawn in accordance with ICRA's policy on withdrawal and
suspension, at the request of the entity and based on the
no-objection certificate provided by the lenders.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based-
Term Loan 100.00 [ICRA]B+ (Stable); withdrawn
Fund based-
Cash Credit 15.00 [ICRA]B+ (Stable); withdrawn
ICRA is withdrawing the rating and it does not have information to
suggest that the credit risk has changed since the time the rating
was last reviewed. The Key rating drivers, Liquidity position,
Rating sensitivities, Key financial indicators have not been
captured as the rated instruments are being withdrawn.
NxtGen Datacenter and Cloud Technologies Private Limited was
initially incorporated as PVRR Data City Private Limited on 21st
March 2012 with the primary objective of setting up a Datacenter.
The Company is promoted by Mr. A S Rajgopal, Mr. Prasad, Mr. Ritesh
Khandelwal & Mr. Viral Thakkar. The Company has set up a high
efficiency and high-density data center (HDDC) in Bangalore. The
Company is primarily providing Enterprise Cloud Services (ECS)
which account for a significant amount of its topline. Nxtgen has
multiple strategic tie ups and provides add-on services ranging
from procurement to artificial intelligence to disaster recovery
which supports its revenue prospects.
NYKA STEELS: CRISIL Moves D Debt Ratings to Not Cooperating
-----------------------------------------------------------
CRISIL Ratings has migrated the ratings on bank facilities of Nyka
Steels Private Limited (NSPL) to 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 20 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Letter of Credit 20 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with NSPL for
obtaining information through letters and emails dated December 23,
2020 and January 29, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of NSPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on NSPL
is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the rating on
bank facilities of NSPL to 'CRISIL D/CRISIL D Issuer not
cooperating'.
NSPL, incorporated in 1995, is currently promoted by Mr. Suhail
Siddiqui and his brothers Mr. Sarfaraz Siddiqui and Mr. Asif
Siddiqui. The company manufactures mild-steel pipes. It is a part
of the Nyka group, also comprising Nyka Engineering Company and
Moon Ispat Industries Ltd, which undertakes job work for NSPL.
ONEST MILK: CRISIL Withdraws B+ Rating on Long Term Bank Debt
-------------------------------------------------------------
CRISIL Ratings has withdrawn its rating on the long-term bank
facility of Onest Milk and Foods (OMF) following a request from the
company. The rating action is in line with CRISIL Ratings' policy
on withdrawal of bank loan ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL B+/Stable (Withdrawn)
OMF, incorporated in October 2019 by Mr. Aditya Chhavdi and Dr.
Bajrang Lal Gochar, is in process of purchasing the business
segment of dairy products of Divya Agro Food Product Private Ltd
with an objective of carrying on the similar business with milk
handling capacity of 31,500 Kg per day. The facility is based in
Kota, Rajasthan.
PALLAVI ENTERPRISES: CRISIL Cuts Rating on INR24cr Loans to D
-------------------------------------------------------------
CRISIL Ratings has downgraded the ratings on the bank facilities of
Pallavi Enterprises to 'CRISIL D/CRISIL D Issuer Not Cooperating'
from 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating.'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 4 CRISIL D (ISSUER NOT
COOPERATING; Downgraded
from 'CRISIL A4 ISSUER NOT
COOPERATING')
Cash Credit 2 CRISIL D (ISSUER NOT
COOPERATING; Downgraded
from 'CRISIL B/Stable ISSUER
NOT COOPERATING')
Long Term Loan 10 CRISIL D (ISSUER NOT
COOPERATING; Downgraded
from 'CRISIL B/Stable ISSUER
NOT COOPERATING')
Warehouse Receipts 8 CRISIL D (ISSUER NOT
COOPERATING; Downgraded
from 'CRISIL B/Stable ISSUER
NOT COOPERATING')
CRISIL Ratings has been consistently following up with Pallavi for
obtaining information through letters and emails dated January 10,
2020 and October 24, 2020 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other.' market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component'.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of Pallavi. This restricts CRISIL
Ratings' ability to take a forward-looking view on the credit
quality of the entity. CRISIL Ratings believes that rating action
on Pallavi is consistent with 'Assessing Information Adequacy
Risk'.
Based on the last available information, CRISIL Ratings has
downgraded the ratings on the bank facilities of Pallavi to 'CRISIL
D/CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable/CRISIL A4
Issuer Not Cooperating' as there are delays in the repayment of
bank loan.
Pallavi was set up in 1983 by Mr. Tatikonda Viswanadham and his
wife Tatikonda Savithri. Girija Modern Rice Mill was set up in 2007
by Mr. Viswanadham and his daughter. Both the firms mill and
process paddy into rice; they also generate by-products such as
broken rice, bran, and husk. The rice mills of both these firms are
in Vijayawada (Andhra Pradesh).
PANKAJ ISPAT: CARE Keeps B- Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Pankaj
Ispat Limited (PIL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated January 9, 2020, continued
the rating of PIL under the 'issuer noncooperating' category as PIL
had failed to provide information for monitoring of the rating and
had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. PIL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter dated January
20, 2021. In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the best available information
which however, in CARE's opinion is not sufficient to arrive at a
fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
At the time of the last rating on January 9, 2020, the following
were the rating strengths and weaknesses (updated for the
information available from Registrar of Companies):
Key rating weaknesses
* Moderate Capacity utilization: Capacity utilization of the
company though remained moderate, deteriorated in FY14 vis-à-vis
FY13. The deterioration was mainly on account of closure of the
operations in the factory since June 2013 due to raid conducted by
Steel Authority of India (SAIL) along with the local police in
April 2013. However, in FY15, the capacity utilization improved.
The effective capacity utilization of TMT Bars and M S Ingots stood
at 79.33% and 96.10% respectively in FY15 vis-à-vis 57.98%
& 69.26% in FY14.
* Lack of backward integration vis-à-vis volatility in prices: Raw
material cost is the single largest cost component for PIL. With
company lacking backward integration for its primary raw materials
(such as coal, sponge iron), it has to resort to open market
purchases at the prevailing market prices. Hence, any adverse
movement in raw material price without any corresponding movement
in finished good price might affect the performance of the company.
Though, the prices of finished goods generally move in tandem with
that of raw materials; but with a time lag which exposes the
company to risk arising on account of volatility in the raw
material prices. Further, the company does not have the captive
power plant resulting in dependence on the grid so as to meet its
power requirement.
* Fragmented industry leading to intense competition: PIL is
engaged in the manufacturing of TMT bars and ingots, the industry
of which is characterized by high fragmentation mainly due to
presence of a large number of unorganized players. The company
markets its products in Central India, which is a hub of steel
plants, on account of proximity to the mineral rich states of
Chhattisgarh. Low level of product differentiation further
intensifies the competition, leading to lower bargaining power
vis-a-vis the customers.
* Moderate financial performance: The total operating income of the
company stood at INR149.38 crore in FY20 vis-a-vis INR157.84 crore
in FY19. The PBILDT margin declined to 2.87% in FY20 from 4.65% in
FY19. Interest coverage remained moderate at 1.80x.
* Working capital intensive nature of operations: PIL's operation
is working capital intensive in nature as it has to hold inventory
of more than one month of raw materials so as to ensure
uninterrupted production and also stocks finished goods inventory
which is used for trading. Further as a result of intense
competition in the industry, the company has to provide extended
credit days to its customers. On the other hand, creditors have to
be paid in a short span of time as a result of which the liquidity
remains stretched. Hence, the company has to rely upon the bank
borrowings to fund its working capital requirement.
Key rating strengths
* Long track record of the company: PIL, belonging to Agrawal
family of Chhattisgarh, is promoted by Mr. Lalit Agrawal and Mr.
Pankaj Agrawal. The promoters of the company have an experience of
a decade as a manufacturer of steel products. Mr Lalit Agrawal
earlier was into trading of steel products and has an overall
experience of more than three decades in the steel industry.
* Strategic location of manufacturing unit: The company's unit is
located at mineral rich state of Raipur, Chhattisgarh. The company
avails operational advantages from its strategic location due to
proximity to source of raw material (sponge iron, coal). Sponge
Iron and coal are procured from local players. Further, its
customers are also located in and around Raipur. Therefore,
proximity to the raw materials and customers leads to substantial
savings in the freight cost.
PIL was originally set up in 2006 as a Private Limited company
(Pankaj Ispat Private Limited) which was reconstituted as a public
limited company on October 5, 2011. PIL commenced its production in
2007-08. The company has a capacity of 24,000 MTPA each of MS
ingots and TMT Bar. The manufacturing facility of the company is
located in Gogaon Industrial Area, Raipur.
QUALITY EXPORTS: CRISIL Assigns B+ Rating to INR14.30cr Loan
------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable/CRISIL A4'
ratings to the bank facilities of Quality Exports (QE).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.25 CRISIL B+/Stable (Assigned)
Export Bill
Purchase-
Discounting 2 CRISIL A4 (Assigned)
Foreign Exchange
Forward 0.45 CRISIL A4 (Assigned)
Packing Credit 14.30 CRISIL B+/Stable (Assigned)
The ratings reflect QE's modest scale of operations, exposure to
risks related to seasonality in business, intense competition,
risks inherent in the seafood industry and vulnerability of
operating margin to fluctuations in forex rates. These weakness are
partially offset by its extensive industry experience of the
partners.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations: Scale of operations has been modest
with turnover expected at around INR20 crore in fiscal 2021. There
has been a sharp decline in the turnover since fiscal 2020 due to
non-favorable climatic conditions for fishing in the coastal belt
of Goa especially during peak season of August to December month.
Further in fiscal 2021 because of pandemic induced non-availability
of labor during peak season impacted the revenue. Timely ramp up in
scale will be key rating sensitivity factor.
* Exposure to risks related to seasonality in business, intense
competition and risks inherent in seafood industry: The industry
faces a demand-supply imbalance, as seafood is a depleting
commodity and tightened regulations on fishing have made supply
conditions irregular. The segment is also susceptible to adverse
seasonal conditions, rampant diseases, climate change. Sustained
demand from key export destinations and domestic seafood production
remain key monitorable.
The seafood export segment is marked by stringent regulations and
quality requirements. Many of the export destinations implement
regulations from time to time (including anti-dumping duty, food
safety regulations, and quality requirements) that need to be met.
Adverse regulatory changes, such as the levy of anti-dumping duties
by importing countries, can have an adverse impact on the
profitability of the players.
* Vulnerability of operating margin to fluctuations in forex rates:
Since majority of revenue comes from the international market, any
sharp fluctuation in forex rates affects realizations and accrual.
This exposes the operating margin to fluctuations in forex rates.
Strengths
* Extensive industry experience of the partners: The partners have
extensive experience in marine products industry. This has given
them an understanding of the dynamics of the market, and enabled
them to establish relationships with suppliers and customers.
Liquidity - Stretched
Bank limit utilisation is low at around 15 percent for the past
twelve months ended February 2021; however liquidity is stretched
as cash accruals are expected to remain low at around INR2-3 crore
over the medium term. In absence of any term debt repayment
obligations, the accruals supports its working capital
requirements. Further, the bank limit utilization has been lower as
the turnover has reduced significantly from peak of INR99 crore in
fiscal 2019 to INR20 crore estimated in fiscal 2021. Partners may
bring in necessary support in form of additional capital if there
is a requirement.
Outlook Stable
CRISIL Ratings believe QE will continue to benefit from the
extensive experience of its promoter, and established relationships
with clients.
Rating Sensitivity factors
Upward factor
* Improvement and sustenance of turnover above INR80 crore and
improvement in profitability
* Improvement in working capital cycle
Downward factor
* Sustenance of turnover below INR20 crore and or deterioration in
profitability
* Stretch in working capital cycle
* Large debt-funded capital expenditure or withdrawal of capital by
partners which could weaken capital structure
Based in Goa, QE is engaged in processing and exporting of marine
products such as reef fishes, swordfish and red Mullet fishes. QE
is owned & managed by Mr. Mohammed M. Ibrahim and Mr. Antonio
Rodrigues.
RAGHAV INDUSTRIES: CRISIL Moves D Debt Ratings to Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Raghav
Industries - Una (RI) to 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Letter of Credit 3 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Long Term Loan 1.5 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with RI for
obtaining information through letters and emails dated December 23,
2020 and January 29, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of RI, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RI is
consistent with 'Assessing Information Adequacy Risk'. Therefore,
on account of inadequate information and lack of management
cooperation, CRISIL Ratings has migrated the rating on bank
facilities of RI to 'CRISIL D/CRISIL D Issuer not cooperating'.
RI, set up in 2010, is managed by the proprietor, Mr. Bhushan
Sharma. The firm manufactures low-density polyethylene sheets and
rolls used for packaging in the automobile and textile industries.
It is based in Himachal Pradesh.
RAIPUR POLYMERS: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Raipur Polymers Private Limited
H.No. 40/804/1, 1st Floor
Behind Lal Ganga Shopping Mall
Near Modern X-ray
G.E. Road Raipur
Pin 492001
Insolvency Commencement Date: March 31, 2021
Court: National Company Law Tribunal, Bhubaneswar Bench
Estimated date of closure of
insolvency resolution process: September 27, 2021
Insolvency professional: Saradindu Jena
Interim Resolution
Professional: Saradindu Jena
O.U-510, 5th Floor
Esplanade One, Rasulgarh
Bhubaneswar 751010
Odisha
E-mail: ip.jena2017@gmail.com
Last date for
submission of claims: April 19, 2021
RNS INFRASTRUCTURE: ICRA Withdraws B+ Rating on INR70cr Loan
------------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
RNS Infrastructure Limited (RIL) at the request of the company and
based on the No Objection Certificate received from its banker.
However, ICRA does not have information to suggest that the credit
risk has changed since the time the rating was last reviewed. The
Key Rating Drivers, Liquidity Position, Rating Sensitivities, Key
financial indicators have not been captured as the rated
instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term- 70.00 [ICRA]B+ (Stable); ISSUER NOT
Fund based COOPERATING; Withdrawn
Long-term/ 550.00 [ICRA]B+ (Stable)/[ICRA]A4;
Short-term- ISSUER NOT COOPERATING;
Non Fund based Withdrawn
RNS Infrastructure Limited (RIL) was set up in 1961 as a
partnership firm by Mr Rama Nagappa Shetty and reconstituted as a
private limited company in 2003. RIL undertakes construction of
roads, irrigation works, tunnels, buildings, and highways. It has
completed civil construction projects for various government
entities such as Karnataka Neeravari Nigam Ltd (KNNL), National
Highways Authority of India (NHAI), Bruhat Bengaluru Mahanagara
Palike (BBMP), and Karnataka Road Development Corporation Ltd
(KRDCL), among others. Besides Karnataka, it has executed projects
across Andhra Pradesh, Maharashtra, Tamil Nadu, and Goa. RIL
entered the real estate business in 2007 and is currently
undertaking its second real estate project, RNS Shrinikethan, in
Yeshwanthpur, Bangalore. It has also set up a 10- megawatt solar
power plant in Pavagadh, Karnataka. The operations of the company
are managed by Mr RN Shetty's son, Mr Naveen Shetty. RIL is a part
of the RN Shetty Group that has interests in construction, hotels,
power, automobile, hospitals, and education.
SATYAMEV EMINENCE: CARE Lowers Rating on INR25cr LT Loan to B+
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Satyamev Eminence (SE), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term 25.00 CARE B+; Stable; ISSUER NOT
Bank Facilities COOPERATING Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE BB-; Stable
Detailed Rationale& Key Rating Drivers
CARE had, vide its press release dated March 27, 2019 (subsequently
reviewed on April 2, 2020), placed the rating of SE under the
'issuer non-cooperating' category as SE had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. SE continues to be non-cooperative despite
repeated requests for submission of information through e-mails
dated February 16, 2021, March 8, 2021, etc., and numerous phone
calls. In line with the extant SEBI guidelines, CARE has reviewed
the rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The revision in the rating assigned to the bank facilities of SE
takes into account non-availability of requisite information to
undertake a review of outstanding rating along with delay in
execution of the real estate project being developed by the firm,
as per data available from public sources such as RERA website.
CARE views information non-availability risk as a key factor in its
assessment of credit risk.
The rating assigned to bank facilities of SE continues to remain
constrained on account of implementation and saleability risk
associated with its sole ongoing real estate project. The rating is
further constrained due to regional concentration of operations,
its constitution as a partnership firm and inherent risks
associated with the real estate sector. The rating, however,
continues to draw strength from long-standing experience of its
partners in real estate sector, group's established track record of
operations in the real estate market of Ahmedabad and favourable
project location.
Detailed description of the key rating drivers
At the time of last rating on April 2, 2020 the following were the
rating strengths and weaknesses (updated for latest updates
available from RERA website and other public sources):
Key Rating Weaknesses
* Project execution and saleability risk: The construction of the
project "Satyamev Eminence" started in June 2016 and as on February
12, 2021, SE has incurred 100% of the total construction cost.
Furthermore, as of February 12, 2021, SE has received booking for
249 units (73% of total units), reflecting moderate booking
status.
* Risk inherent to real estate sector: The real estate sector in
India is highly fragmented with most of the real estate developers
having a city-specific or region-specific presence. All the
projects developed by Satyamev Group all are located in Ahmedabad,
depicting high regional concentration of operations. Furthermore,
the real estate sector in Ahmedabad faces intense competition from
many large and small developers operating in the city.
* Constitution as a partnership firm: SE' constitution as a
partnership firm restricts its financial flexibility with a
possibility of withdrawal of capital by the partners from the
firm.
Key Rating Strengths
* Experienced Partners with an established track record in real
estate sector: SE is a project-specific SPV constituted by
Ahmedabad-based Satyamev group (SG; formerly known as Samarpan &
Shashvat). The project is managed by Mr. Lalit Patel, who has an
experience of around 25 years in developing real estate projects.
The Group had developed 14 real estate projects in and around
Ahmedabad comprising of 7 residential projects, 4 commercial
projects and 3 residential cum commercial project.
* Favourable project location and debt tie-up: The project is
located at Science City road, Ahmedabad which is amongst one of the
prime localities in Ahmedabad. Also, the site is in close proximity
to SG highway and SP ring road providing good connectivity and
accessibility. The total project cost is envisaged at INR97.15
crore, to be funded through term debt of INR25.00 crore and balance
will be funded by promoters and customer advances. Firm has
achieved financial closure for the project.
Satyamev Eminence is a high-end commercial project being developed
by Satyamev Eminence (Satyamev group) at Science city road, Sola,
Ahmedabad. The Project consists of one commercial building with 13
floors, having retail showroom/shops (108) and corporate offices
(232) along with terrace and basement. The Project has total
saleable area 4.26 lsf (Carpet area of 2.52 lsf). The project
development commenced in June 2016.
SOLAS FIRE: Insolvency Resolution Process Case Summary
------------------------------------------------------
Debtor: Solas Fire Safety Equipment Private Limited
No. 2, 1st Main Road
Vasanth Nagar
Bengaluru 560052
India
Insolvency Commencement Date: March 15, 2021
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: September 11, 2021
(180 days from commencement)
Insolvency professional: Aliuttan Prasad Singh
Interim Resolution
Professional: Aliuttan Prasad Singh
A-97 & 98, Upper Ground Floor
Street No. 6, Madhu Vihar
Delhi 110092
E-mail: aliuttanpsingh@gmail.com
solasfiresafetyequipment@
gmail.com
Last date for
submission of claims: April 14, 2021
SURYA PANEL: CRISIL Reaffirms B- Rating on INR21cr Loans
--------------------------------------------------------
CRISIL Ratings has reaffirmed the ratings on certain bank
facilities of Surya Panel Private Limited (SPPL), as:
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B-/Stable (Reaffirmed)
Proposed Working
Capital Facility 3 CRISIL B-/Stable (Reaffirmed)
Term Loan 13 CRISIL B-/Stable (Reaffirmed)
CRISIL Ratings on the bank facilities of SPPL continue to reflects
the company's modest scale of operations and below average
financial risk profile. These weaknesses are partially offset by
the experience of its promoters.
Analytical Approach
CRISIL Ratings has continued treating unsecured loans from
promoters as of 31st March 2020 of INR13.95 crore as neither debt
nor equity as it is expected to be retained in the company over the
medium term.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations: SPPL commenced operations only from
the end of fiscal 2018. The modest scale of operations is reflected
in the turnover of around INR9 crore for fiscal 2020 and it is
estimated to be at INR9 - INR10 crore for fiscal 2021. The scale of
operations is expected to remain modest over the medium term.
* Below average financial risk profile: SPPL's financial risk
profile is below average marked by a leveraged capital structure
and weak debt protection metrics. The networth was negligible on
account of accumulated losses. Interest coverage was below 1, due
to high reliance on debt to fund working capital requirement;
resulting in high interest costs.
Strengths:
* Extensive experience of promoters: The promoters have experience
for around 20 years in the construction and building products
industry, which is expected to support the company. The promoters
also hold stake in other group companies engaged in similar
business. The extensive experience of the promoters shall aid the
company's business risk profile over the medium term.
Liquidity: Stretched
SPPL's liquidity is stretched marked by moderate utilization of the
bank limits though inadequate cash accrual for debt repayments. The
working capital limits have been utilized at an average of around
60% for the 6 months ended February 2021. Cash accrual is negative
for fiscal 2020; however repayments are supported through timely
infusion of unsecured loans from promoters. The promoters have been
infusing unsecured loans, the balance of which was at INR13.95
crore as on March 31, 2020. Improvement in liquidity shall remain a
key monitorable over the medium term.
Outlook: Stable
CRISIL Ratings believes SPPL will continue to benefit over the
medium term from its promoters' previous experience in related
industries.
Rating Sensitivity factors
Upward Factors:
* Improvement in interest coverage to more than 2 times
* Improvement in capital structure
Downward Factors:
* Decline in operating income by more than 40%
* Any large debt-funded capital expenditure; further weakening the
financial risk profile
* Withdrawal of funding support from promoters
Incorporated in December 2014 and promoted by Mr. Sudharshan
Hadihalli Byregowda and Mr. Rushil Krupesh Thakkar, SPPL is setting
up a manufacturing facility for high-density fibre boards and
medium-density fibre boards.
TIJARIA POLYPIPES: ICRA Assigns B Rating to INR56.27cr LT Loan
--------------------------------------------------------------
ICRA has assigned rating to the bank facilities of Tijaria
Polypipes Limited (TPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term–
Fund based/CC 5.00 [ICRA]B (Stable); assigned
Long term-
Fund based/TL 56.27 [ICRA]B (Stable); assigned
Short term-
Non-fund based 5.00 [ICRA]A4; assigned
Rationale
The assigned ratings favorably consider TPL's diversified product
portfolio comprising high-density polyethylene (HDPE) pipes,
low-density polyethylene (LDPE) pipes, polyvinyl chloride (PVC)
pipes, and mink blankets. ICRA also notes the company's association
with a reputed customer base including Tata Projects Limited,
Larsen & Toubro Limited etc. However, the ratings remain
constrained by the company's small scale of operations and high
customer-concentration risk.
Further, while in FY2019 the company's revenues increased by over
90%, albeit on a small base, the top line deteriorated by ~50% in
FY2020 due to lower order inflow and limited working capital
availability. ICRA also notes TPL's weak financial performance in
9M FY2021 amid the Covid-19 pandemic. The company reported a YoY
revenue decline of ~36% in 9M FY2021.
With the sharp drop in revenues, it suffered losses at the
operating level as well as net loss in 9M FY2021. ICRA also notes
that the company has opted for a loan restructuring relief under
the resolution framework for Covid-19-related stress specified by
the Reserve Bank of India (RBI). This has enabled TPL to maintain a
liquidity buffer to meet its operating costs and interest
obligations on working capital till the moratorium period. ICRA
also notes the stressed cash flows of the company due to continuing
losses as well as increase in working capital intensity due to
stretched receivables. The rating also notes the vulnerability of
profitability to raw material price risk as well as stiff
competition from established as well as unorganized players, which
limits its bargaining power with customers. The Stable outlook on
the [ICRA]B rating reflects ICRA's opinion that TPL will continue
to benefit from its long track record of operations.
Key rating drivers and their description
Credit strength
* Long track record of promoters and TPL in polymer business: TPL
was incorporated in 2006 by the conversion of a partnership firm
(named Tijaria Overseas Vinyl), which was established in 2000. The
company manufactures high-grade HDPE, PVC plastic pipes and
sprinkler systems under the brand names of Tijaria and Vikas. In
addition, TPL operates a textile division, wherein it manufactures
mink blankets. The company has executed various Government projects
over the years. The promoters have been in the business for almost
two decades now.
Credit challenges
* Small scale of operations: TPL's scale of operations is small
with revenues of INR73.45 crore in FY2020. Moreover, the company's
top line deteriorated to INR38.53 crore in 9M FY2021 owing to the
pandemic.
* Weak financial risk profile: The company's financial risk profile
remains weak, marked by modest net worth position of INR20.89 crore
as on March 2020 due to accumulated losses resulting in elevated
gearing as well as TOL/TNW levels. Furthermore, the company was
under the non-performing asset (NPA) status till March 2019 because
of poor liquidity. However, the payment to lenders has been timely
since April 2019. Further, the company has availed moratorium and
has also undergone debt restructuring resolution framework for
Covid-19-related stress specified by the RBI. While the debt
restructuring has eased its financial burden in the medium term,
its liquidity remains stretched.
* High working capital intensity: TPL has remained highly dependent
on short-term working capital limits over the years, which have
remained fully utilized. This, together with high inventory levels
and stretched receivables, is likely to keep the liquidity position
stretched in the medium term. Given its small balance sheet size,
any large write-off would adversely impact its overall credit
profile. While the company has seen some movement in its debtor
levels in the recent months, the sustainability of the same remains
to be established.
* High customer-concentration risk coupled with intense industry
competition: The customer concentration remains high in the pipe
division with the top five customers accounting for ~80% of its
total revenue in the pipes division.
* Profitability indicators exposed to volatility in raw material
prices: The company's revenues and margins are exposed to price
fluctuation of key raw materials such as PVC resin and HDPE/LDPE
granules. Any adverse movement in the price of raw materials could
have an adverse impact on the company's margins, considering the
limited value addition and intense competition.
Liquidity position: Poor
TPL's liquidity position is poor, as reflected by near-full
utilization in its fund-based working capital limits in the past 12
months. Although the company has seen some movement in its debtor
levels in the recent months, the sustainability of the same remains
to be established.
Rating sensitivities
Positive factors – The ratings may be upgraded if TPL's scale and
profitability increase on a sustained basis. Further, reduction in
its working capital intensity improving its liquidity position
could result in a ratings upgrade.
Negative factors – ICRA would downgrade TPL's rating in the event
of continued pressure on its liquidity, which could affect its debt
servicing capabilities.
Tijaria Polypipes Limited (TPL) was incorporated in 2006 by the
conversion of a partnership firm (named Tijaria Overseas Vinyl),
which was established in 2000. The company manufactures high-grade
HDPE, PVC, MDPE and LDPE plastic pipes and sprinkler systems under
the brand names of Tijaria and Vikas. Its products are used in
irrigation, telecommunication, industrial, infrastructure and
housing sectors. In addition, the company operates a textile
division, wherein it manufactures mink blankets. The manufacturing
units of the company is located at Jaipur, Rajasthan.
UPPER INDIA: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Upper
India Steel Manufacturing & Engineering Company Limited (UIS)
continues to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 44.70 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 19.90 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated January 8, 2020, placed the
rating of UIS under the 'issuer non-cooperating' category as UIS
failed to provide information for monitoring of the rating. UIS
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a letter
dated April 1, 2021. In line with the extant SEBI guidelines, CARE
has reviewed the rating on the basis of the best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The rating assigned to the bank facilities of UIS has been reviewed
on account of non-availability of requisite information due to
non-cooperation by UIS with CARE's efforts to undertake a review of
the outstanding rating. CARE views information availability risk as
a key factor in its assessment of credit risk. The ratings take
into account delays in the servicing of the debt obligation of the
company.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Delays in debt servicing: There are delays in the servicing of
the debt obligation for the bank facilities availed by the
company.
Upper India Steel Manufacturing & Engineering Company Ltd (UIS) was
incorporated in 1961 as a private limited company and was
subsequently converted to a closely held public limited company in
1983. The company is promoted and managed by Mr. Pritpal Singh
Grewal and Mr. Gursimran Singh Grewal and is engaged in the
manufacturing of specialized steel products for various automotive
ancillaries, Indian railways and engineering goods industry, at its
manufacturing facility situated at Ludhiana, with an installed
capacity of 65,000 MT for steel ingots/billets. The company also
has an installed capacity of 93,300 MT for rolling bars & rounds
and a capacity of 18,000 MT for annealing and drawing process. On
account of decline in the scale of operations and continued losses
in the past, the debt of the company was restructured in June 2014.
VGN PROJECTS: ICRA Withdraws D Outstanding Issuer Rating
--------------------------------------------------------
ICRA has withdrawn the issuer rating outstanding on VGN Projects
Estates Private Limited (VGNPEPL) at the request of the company, in
accordance with ICRA's policy on withdrawal of credit ratings and
on completion of the period of notice of withdrawal.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Issuer rating - [ICRA]D ISSUER NOT COOPERATING
Withdrawn
ICRA does not have information to suggest that the credit risk has
changed since the time the rating was last reviewed. The Key rating
drivers, Liquidity position, Rating sensitivities and Key financial
indicators have not been captured as the rated instrument has been
withdrawn.
VGNPEPL, incorporated in 2008, develops residential projects and
layouts in Chennai. The company is fully held by Mr. Pratish
Devadoss and his family. VGNPEPL has delivered 2.8 million sq. ft.
of residential projects.
=================
S I N G A P O R E
=================
EAGLE HOSPITALITY: Unit to Sell Hotel in Texas for US$18 Million
----------------------------------------------------------------
The Business Times reports that a wholly-owned subsidiary of Eagle
Hospitality Real Estate Investment Trust (EH-REIT) entered into a
sale-and-purchase agreement on April 7 for the sale of one of the
18 hotels in Eagle Hospitality Trust's (EHT) portfolio, DBS Trustee
said on April 12.
BT relates that in an exchange filing, DBS Trustee, in its capacity
as trustee of EH-REIT, said that the subsidiary entered into the
agreement with Lockwood Development Partners for the sale of Crowne
Plaza Dallas Near Galleria-Addison (CPDG) property in Texas for
US$18 million.
The property is a freehold property comprising a four-storey,
428-room hotel located near downtown Dallas and Dallas Fort-Worth
International Airport, BT says.
According to BT, DBS Trustee said that CPDG is one of three
properties in EHT's portfolio that is not directly owned by a
Chapter 11 entity, so it is not subject to bankruptcy protection
under Section 363 of the United States Bankruptcy Code.
DBS Trustee said it had been advised that CPDG had retained
sufficient value to warrant an effort to sell the hotel. It noted
that the hotel has remained closed since April 2020, but incurs
ongoing expenses of approximately US$100,000 per month, which
continue to accrue, BT relays.
The report relates that the trustee also noted that there was a
risk of CPDG's lender exercising its right to foreclose on the
property. "In that event, CPDG will unlikely generate any net
proceeds for such a sale and this would not be in the interests of
stakeholders."
The proceeds of the CPDG disposal will be used to repay
disposal-related expenses (including professional fees), the net
outstanding amount under the CPDG mortgage loan, and other
unsecured claims against the seller-owner, including outstanding
accounts payable, DBS Trustee said.
It added: "If and to the extent there are net proceeds after making
such repayments, such remaining net proceeds will be distributed
upstream to the Chapter 11 Entities, as the holding company of the
seller-owner is a Chapter 11 Entity, and will form part of the pool
of assets which will be subject to the Chapter 11 process," BT
relays.
About Eagle Hospitality Group
Eagle Hospitality Trust -- https://eagleht.com/ -- is a hospitality
stapled group comprising Eagle Hospitality Real Estate Investment
Trust and Eagle Hospitality Business Trust. Based in Singapore,
Eagle H-REIT is established with the principal investment strategy
of investing on a long-term basis in a diversified portfolio of
income-producing real estate, which is used primarily for
hospitality or hospitality-related purposes as well as real
estate-related assets in connection with the foregoing, with an
initial focus on the United States.
EHT US1, Inc. and 26 affiliates, including 15 LLC entities that
each owns hotels in the U.S., sought Chapter 11 protection (Bankr.
D. Del. Lead Case No. 21-10036) on Jan. 18, 2021. EHT US1
estimated $500 million to $1 billion in assets and liabilities as
of the bankruptcy filing.
The Debtors tapped Paul Hastings LLP and Cole Schotz P.C. as their
bankruptcy counsel, FTI Consulting Inc. as restructuring advisor,
and Moelis & Company LLC as investment banker. Rajah & Tann
Singapore LLP and Walkers serve as Singapore Law counsel and Cayman
Law counsel, respectively. Donlin, Recano & Company, Inc., is the
claims agent.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee of unsecured creditors in the Debtors' Chapter 11 cases
on Feb. 4, 2021. The committee is represented by Morris James,
LLP, and Kramer Levin Naftalis & Frankel, LLP.
=====================
S O U T H K O R E A
=====================
SSANGYONG MOTOR: Seeks to Avert Stock Market Delisting
------------------------------------------------------
Yonhap News Agency reports that SsangYong Motor Co. said April 13
it has raised an objection to the Seoul bourse operator's decision
to delist it from the local stock market.
According to Yonhap, trading of SsangYong stocks on the main bourse
KOSPI has been suspended after it filed for court receivership in
December due to impaired capital base. Its external auditor also
rejected its annual financial report last month.
Yonhap relates that the Korea Exchange (KRX) said in a regulatory
briefing that it will review SsangYong's objection and may allow
the automaker to improve its financial situation.
The SUV-focused automaker logged KRW449.4 billion (US$398 million)
in operating losses last year, increasing its deficit from KRW281.9
billion in 2019. Its sales dipped 18.6 percent on-year to KRW2.9
trillion in 2020, Yonhap discloses.
SsangYong has recently reassessed its assets, including its
Pyeongtaek headquarters and other land lots, which boosted its book
value by KRW279 billion to a total of KRW681.3 billion in capital
as of 2020.
Indian carmaker Mahindra & Mahindra Ltd., SsangYong's parent
company, has been trying to sell its controlling stake in the
Korean unit but has faced difficulty in narrowing terms of the deal
with a potential buyer, the report notes.
According to Yonhap, court-led restructuring program is widely
expected to begin this week as U.S. vehicle importer HAAH
Automotive Holdings Inc., which showed interest in the deal, did
not submit a letter of intent by the March 31 deadline.
About Ssangyong Motor
Headquartered in Kyeonggi-Do, South Korea, Ssangyong Motor Co. Ltd.
engages in the manufacture and sale of automobiles. The Company
mainly manufactures and sells recreational vehicles (RVs), sports
utility vehicles (SUVs), multi-purpose vehicles (CDVs) and
passenger cars under the brand name of rexton sports, korando,
korando sports, korando turismo, tivoli, tivoli air and others. The
Company also provides automobile parts. The Company distributes its
products within domestic market and to overseas markets.
SsangYong Motor Co. on Dec. 21, 2020, filed for court receivership
as it struggles with snowballing debts amid the COVID-19 pandemic,
according to Yonhap News Agency. The decision comes after SsangYong
Motor, the South Korean unit of Indian carmaker Mahindra & Mahindra
Ltd., failed to pay KRW60 billion (US$54.8 million) worth of debts
to its three creditor banks.
Mahindra acquired a 70% stake in SsangYong for KRW523 billion in
2011 and now holds a 74.65% stake in the carmaker.
*********
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,
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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.
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