/raid1/www/Hosts/bankrupt/TCRAP_Public/210505.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, May 5, 2021, Vol. 24, No. 84
Headlines
A U S T R A L I A
ADAMAN RESOURCES: First Creditors' Meeting Set for May 12
AUSTRALIAN SALES: Fitch Affirms BB Rating on Class E Tranche
BREMONT WATCH: Second Creditors' Meeting Set for May 12
KAMI & CO: First Creditors' Meeting Set for May 7
LMDM LEATHER: Second Creditors' Meeting Set for May 12
NICKAZ CONSTRUCTIONS: Second Creditors' Meeting Set for May 12
SUB ZERO: First Creditors' Meeting Set for May 12
TIKFORCE LIMITED: Second Creditors' Meeting Set for May 11
WIRRALIE MINES: First Creditors' Meeting Set for May 12
[*] Insolvency Reforms Would Benefit From US-Style Bankruptcy
C H I N A
HNA GROUP: Units Report Combined $15BB in Losses for 2020
PEKING UNIVERSITY: Ping An to Lead $11.3-Billion Restructuring
[*] CHINA: Life is Still Far From Normal for Small Businesses
I N D I A
A TO Z DEVELOPERS: CRISIL Keeps B+ Ratings in Not Cooperating
BHARATHI VIDHYALAYA: CRISIL Cuts Rating on INR40cr Term Loan to D
COCHIN FROZEN: CRISIL Cuts Rating on INR27cr Packing Loan to D
ETERNAL MOTORS: CRISIL Lowers Rating on INR10cr Loans to D
GLOBAL HEALTH: CRISIL Lowers Rating on INR110cr LT Loan to D
H. K. TIMBERS: CRISIL Cuts Rating on INR14.75cr Loans to D
JINDAL WOOD: CRISIL Lowers Rating on INR21cr Loans to D
KALOSONA HIMGHAR: CRISIL Keeps B+ Debt Ratings in Not Cooperating
KAY EM COPPER: Insolvency Resolution Process Case Summary
KTC AUTOMOBILES: CRISIL Keeps D Debt Ratings in Not Cooperating
MASCONS ENGINEERING: CRISIL Keeps D Debt Rating in Not Cooperating
MUNISH FORGE: CRISIL Lowers Rating on INR30cr Cash Credit to D
PCP INTERNATIONAL: CRISIL Cuts Rating on INR65cr Bank Loan to D
S.K. RICE: CRISIL Keeps D Debt Rating in Not Cooperating
SCANIA STEELS: CRISIL Keeps D Debt Ratings in Not Cooperating
SHAKTHI TECH: CRISIL Lowers Rating on INR21.43cr Term Loan to D
SIVAGURU SPINNING: CRISIL Cuts Rating on INR15cr Cash Credit to D
SUBRA ENTERPRISES: CRISIL Keeps D Debt Rating in Not Cooperating
SWASTIK COAL: CRISIL Keeps D Debt Ratings in Not Cooperating
VEERGANAPATHI STEELS: CRISIL Keeps D Rating in Not Cooperating
VENUS ROLLING: CRISIL Keeps D Debt Ratings in Not Cooperating
S I N G A P O R E
GOLDEN ENERGY: Fitch Assigns B+ Rating on Proposed USD Notes
GOLDEN ENERGY: Moody's Assigns B1 Rating to New Sr. Secured Notes
HYFLUX LTD: Gets 6 Final Offers with One Covering Retail Investors
S O U T H K O R E A
SAMSUNG HEAVY: Net Loss Widens to KRW535.9BB in Q1 Ended March 31
T H A I L A N D
THAI AIRWAYS: Is in Dispute with Labor Union Over Survival Plan
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A U S T R A L I A
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ADAMAN RESOURCES: First Creditors' Meeting Set for May 12
---------------------------------------------------------
A first meeting of the creditors in the proceedings of:
- Adaman Resources Pty Ltd
- Goldlake Holdings Pty Ltd
- Hopstorm Pty Ltd
- Adaman Gold Pty Ltd
- Kirkalocka Gold SPV Pty Ltd
- Adaman Gold Hold Co Pty Ltd
- Adaman Minerals Pty Ltd
will be held on May 12, 2021, at 11:00 a.m. via online video
conference using Zoom meeting software.
Jeremy Joseph Nipps and Barry Wight of Cor Cordis were appointed as
administrators of Adaman Resources on May 1, 2021.
AUSTRALIAN SALES: Fitch Affirms BB Rating on Class E Tranche
------------------------------------------------------------
Fitch Ratings has affirmed the ratings of 40 tranches across five
Latitude credit card trusts. The transactions are securitisations
of Australian and New Zealand credit card receivables originated by
Latitude Finance Australia entities.
DEBT RATING PRIOR
---- ------ -----
Australian Sales Finance and Credit Cards Trust
A LT AAAsf Affirmed AAAsf
B LT AAsf Affirmed AAsf
C LT Asf Affirmed Asf
D LT BBBsf Affirmed BBBsf
E LT BBsf Affirmed BBsf
Latitude Australia Credit Card Master Trust
2017-2 Class A1 AU3FN0037826 LT AAAsf Affirmed AAAsf
2017-2 Class A2 AU3FN0037834 LT AAAsf Affirmed AAAsf
2017-2 Class B AU3FN0037842 LT AAsf Affirmed AAsf
2017-2 Class C AU3FN0037859 LT Asf Affirmed Asf
2017-2 Class D AU3FN0037867 LT BBBsf Affirmed BBBsf
2017-2 Class E AU3FN0037875 LT BBsf Affirmed BBsf
2017-VFN LT Asf Affirmed Asf
2018-1 Class A1 AU3FN0041513 LT AAAsf Affirmed AAAsf
2018-1 Class A2 AU3FN0041521 LT AAAsf Affirmed AAAsf
2018-1 Class B AU3FN0041539 LT AAsf Affirmed AAsf
2018-1 Class C AU3FN0041547 LT Asf Affirmed Asf
2018-1 Class D AU3FN0041554 LT BBBsf Affirmed BBBsf
2018-1 Class E AU3FN0041562 LT BBsf Affirmed BBsf
2019-1 Class A1 AU3FN0050035 LT AAAsf Affirmed AAAsf
2019-1 Class A2 AU3FN0050050 LT AAAsf Affirmed AAAsf
2019-1 Class B AU3FN0050068 LT AAsf Affirmed AAsf
2019-1 Class C AU3FN0050076 LT Asf Affirmed Asf
2019-1 Class D AU3FN0050084 LT BBBsf Affirmed BBBsf
2019-1 Class E AU3FN0050092 LT BBsf Affirmed BBsf
Australian Sales Finance and Credit Cards No.2 Trust
A1 LT AAAsf Affirmed AAAsf
A2 LT AAAsf Affirmed AAAsf
B LT Asf Affirmed Asf
C LT BBBsf Affirmed BBBsf
D LT BBsf Affirmed BBsf
Latitude New Zealand Credit Card Master Trust
2018-1 A NZLATD1001R5 LT AAAsf Affirmed AAAsf
2018-1 B NZLATD1002R3 LT AAsf Affirmed AAsf
2018-1 C NZLATD1003R1 LT Asf Affirmed Asf
2018-1 D NZLATD1004R9 LT BBBsf Affirmed BBBsf
2018-1 E NZLATD1005R6 LT BBsf Affirmed BBsf
2018-VFN LT BBBsf Affirmed BBBsf
New Zealand Sales Finance and Credit Cards Trust
A LT AAAsf Affirmed AAAsf
B LT AAsf Affirmed AAsf
C LT Asf Affirmed Asf
D LT BBBsf Affirmed BBBsf
E LT BBsf Affirmed BBsf
KEY RATING DRIVERS
Stable Historical Performance and Collateral Characteristics:
Charge-off performance remained stable over the last year with
gross charge-offs across all the Australia trusts averaging 3.5%,
while for the New Zealand trusts charge-offs averaged 3.2%. Fitch
has removed the additional pandemic stress on charge-offs that was
implemented in June 2020 to reflect Fitch's expectations of a
long-term worsening of asset performance. However, economic
performance has been better than Fitch expected, and Fitch believes
the steady states incorporate a buffer that is sufficient to
account for any pandemic-related uncertainty. This has led us to
decrease the charge-off steady state to the pre-pandemic level of
5.25% and 4.25% for Australia and New Zealand trusts respectively.
The monthly payment rate (MPR), a measure of how quickly consumers
are paying off their credit card debt, has averaged 14.5% in
Australia and 11.1% in New Zealand over the past year. Fitch has
maintained its MPR steady state at 12.5% for Australia and 9.75%
for NZ.
Yield remained steady over the past year across the transactions,
averaging 14.6% in Australia and 15.3% in New Zealand. Fitch
maintained its gross yield steady state at 13.0% in both
countries.
Portfolio performance is also supported by Australia's and New
Zealand's effective suppression of the virus and macro-policy
response, facilitating a V-shaped recovery for both the countries.
Fitch forecasts Australia's unemployment rate at 6.0% in 2021, with
GDP growth of 4.7%. Fitch expects Australia's GDP growth to
stabilise in 2022 at 2.4% and the unemployment rate to continue to
improve, falling to 5.4%. Fitch expects the New Zealand economy to
remain on a modest positive quarterly trajectory, with GDP growth
(production measure) rebounding by 4.6% in 2021 and 3.6% in 2022 in
Fitch's projections, from an estimated -2.6% in 2020. Fitch expects
unemployment to peak at 6.2% in 1Q21, but trend gradually lower to
5.1% by end-2022.
Updated cash flow modelling was not performed for this review, as
the notes were either rated at their highest level or constrained
by the same rationale as the last review, despite the removal of
the additional pandemic stress. Some of the outstanding subordinate
tranches during the last review were able to support higher
model-implied ratings based on the output of Fitch's proprietary
cash flow model, but due to the continuous funding nature of the
programme, were affirmed in anticipation of future issuance and to
avoid rating volatility.
A summary of the steady states for the Australian and New Zealand
trusts is shown below:
Australia
Steady States:
Charge-offs: 5.25%
MPR: 12.5%
Gross yield: 13.00%
Purchase rate: 100%
Rating Stresses:
Ratings: AAAsf / AAsf / Asf / BBBsf / BBsf
Charge-offs (increase): 4.50x / 3.75x / 3.00x / 2.25x / 1.50x
Purchase rate (% decrease): 90.00% / 85.00% / 75.00% / 65.00% /
55.00%
New Zealand
Steady States:
Charge-offs: 4.25%
MPR: 9.75%
Gross yield: 13.00%
Purchase rate: 100%
Rating Stresses:
Ratings: AAAsf / AAsf / Asf / BBBsf / BBsf
Charge-offs (increase): 4.50x / 3.75x / 3.00x / 2.25x / 1.50x
Purchase rate (% decrease): 90.00% / 85.00% / 75.00% / 65.00% /
55.00%
Originator and Servicer Quality: Fitch believes Latitude is an
effective and capable originator and servicer due to a long and
consistent record. Latitude, through previous ownership, has been
managing large consumer receivable portfolios for over a decade in
Australia and New Zealand. Fitch reviewed Latitude's underwriting
and servicing capabilities and found them satisfactory. Latitude is
not rated and servicer risk is mitigated through back-up
arrangements. Fitch undertook an operational review and found that
the operations of the originator and servicer were comparable with
other non-bank credit card providers.
The Stable Outlook reflects Fitch's long-term view that the ratings
are not susceptible to negative rating action, due to the strong
level of subordination available at each rating level.
The key rating drivers listed in the applicable sector criteria,
but not mentioned above, are not material to this rating action.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Long-term asset performance improvement, such as decreased
charge-offs, increased MPR or increased portfolio yield,
driven by a sustainable positive change to underlying asset
quality. This would contribute to a positive revision of
Fitch's asset assumptions, which could positively affect the
notes' ratings.
-- Some of the outstanding subordinate tranches may be able to
support higher ratings based on the output of Fitch's
proprietary cash flow model from a previous model run.
Enhancement levels are set to maintain a constant rating level
per class of issued notes and may provide more than the
minimum enhancement necessary to retain issuance flexibility,
since the credit card programme is set up as a continuous
funding programme and requires that any new issuance or note
reductions do not affect the rating of existing tranches.
Therefore, Fitch may decide not to assign or maintain ratings
above the current outstanding ratings in anticipation of
future issuance or reductions.
Factor that could, individually or collectively, lead to negative
rating action/downgrade:
-- A longer pandemic than Fitch expects that causes macroeconomic
fundamentals and consumers' financial position in Australia
and New Zealand to worsen beyond Fitch's baseline scenario.
Credit enhancement ratios cannot fully compensate for credit
losses and cash flow stresses associated with the assigned
ratings, all else being equal.
Coronavirus Downside Scenario Sensitivity:
Fitch had increased the charge off steady state assumption to 6.8%
for Australian transactions and to 5.5% for the NZ transactions
during previous review, to address the expected deterioration in
the asset performance due to the coronavirus pandemic. Charge-off
multiples were adjusted to reflect Fitch's through-the cycle
approach and resulted in about a 5% increase in the default rate
for 'AAAsf' rating levels up to a 30% increase in defaults for
'Bsf' rating levels. There was no impact to the rated notes due to
the increase.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Structured Finance
transactions have a best-case rating upgrade scenario (defined as
the 99th percentile of rating transitions, measured in a positive
direction) of seven notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of seven notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings
are based on historical performance.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pools and the transactions. Fitch has not reviewed the results of
any third-party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring. Prior to the transactions closing, Fitch reviewed the
results of a third-party assessment conducted on the asset
portfolio information and concluded that there were no findings
that affected the rating analysis. Overall, and together with any
assumptions referred to above, Fitch's assessment of the
information relied upon for the agency's rating analysis, according
to its applicable rating methodologies, indicates that it is
adequately reliable.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
BREMONT WATCH: Second Creditors' Meeting Set for May 12
-------------------------------------------------------
A second meeting of creditors in the proceedings of Bremont Watch
Company Pty Ltd has been set for May 12, 2021, at 5:00 p.m. via
virtual facilities.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 11, 2021, at 4:00 p.m.
David Coyne of BRI Ferrier was appointed as administrator of
Bremont Watch on March 30, 2021.
KAMI & CO: First Creditors' Meeting Set for May 7
-------------------------------------------------
A first meeting of the creditors in the proceedings of Kami & Co
Pty Ltd, formerly trading as Chop Chop Sushi, BurgerTime 69
Redcliffe and My Greek Cuzina Redcliffe, will be held on May 7,
2021, at 11:00 a.m. at the offices of BRI Ferrier, Level 4, 307
Queen Street, in Brisbane, Queensland.
Ian Alexander Currie of BRI Ferrier was appointed as administrator
of Kami & Co on April 27, 2021.
LMDM LEATHER: Second Creditors' Meeting Set for May 12
------------------------------------------------------
A second meeting of creditors in the proceedings of LMDM Leather Co
Pty Ltd, trading as Lancel, and LMDM Pty Ltd, trading as Montblanc,
has been set for May 12, 2021, at 2:00 p.m. via virtual facilities.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 11, 2021, at 4:00 p.m.
David Coyne of BRI Ferrier was appointed as administrator of LMDM
Leather Co Pty Ltd on March 30, 2021.
NICKAZ CONSTRUCTIONS: Second Creditors' Meeting Set for May 12
--------------------------------------------------------------
A second meeting of creditors in the proceedings of Nickaz
Constructions Pty Ltd, trading as Nickaz Design & Constructions,
has been set for May 12, 2021, at 11:00 a.m. at the offices of
Level 40, 2 Park Street, in Sydney, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 11, 2021, at 5:00 p.m.
Steven Arthur Gladman of Hall Chadwick was appointed as
administrator of Nickaz Constructions on April 7, 2021.
SUB ZERO: First Creditors' Meeting Set for May 12
-------------------------------------------------
A first meeting of the creditors in the proceedings of Sub Zero
Cold Storage & Logistics Pty Ltd ATF The Sub Zero Refrigerated
Transport Unit Trust will be held on May 12, 2021, at 10:30 a.m. at
the offices of Jirsch Sutherland, Level 30, 140 William Street, in
Melbourne, Victoria.
Glenn Anthony Crisp and Andrew Mattinson of Jirsch Sutherland were
appointed as administrators of Sub Zero on April 30, 2021.
TIKFORCE LIMITED: Second Creditors' Meeting Set for May 11
----------------------------------------------------------
A second meeting of creditors in the proceedings of Tikforce
Limited has been set for May 11, 2021, at 10:00 a.m. at the offices
of GTS Advisory, Level 1, Suite 145, 580 Hay 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 May 10, 2021, at 5:00 p.m.
Mathieu Tribut of GTS Advisory was appointed as administrator of
Tikforce Limited on March 25, 2021.
WIRRALIE MINES: First Creditors' Meeting Set for May 12
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Wirralie
Mines Pty Ltd will be held on May 12, 2021, at 10:30 a.m. at the
offices of BRI Ferrier, Level 1, 211 Sturt Street, in Townsville,
Queensland.
Robert Colin Humphreys of BRI Ferrier was appointed as
administrator of Wirralie Mines on April 29, 2021.
[*] Insolvency Reforms Would Benefit From US-Style Bankruptcy
-------------------------------------------------------------
Ronald Mizen of the Australian Financial Review reports that
Australian insolvency and restructuring experts said that reforms
announced on May 3 designed to help struggling companies at risk of
collapse would benefit from adopting US-style bankruptcy options.
According to AFR, Treasurer Josh Frydenberg announced steps to
overhaul insolvency laws, including a strengthening of schemes of
arrangement to better support the so-called debtor-in-possession
model for large companies.
"As Australia's economy rebuilds, it's important that as many
businesses as possible have the opportunity to turn around,
restructure and survive," AFR quotes Mr. Frydenberg as saying.
AFR says the proposed reforms would introduce a moratorium on
creditor action, which is currently only available through a court
order, while schemes are being negotiated.
"This would protect a company from claims being brought while it's
pursuing a scheme," Ashurst insolvency partner Alinta Kemeny said.
AFR relates that Ms. Kemeny said the current schemes of arrangement
framework already allowed for a debtor-in-possession model, but a
costly court-driven process meant it was primarily used only by
large corporations.
The Ashurst partner, who specialises in such schemes, said taking
elements from the US debtor-in-possession Chapter 11 model would be
a way to make the process more attractive and usable, AFR adds.
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C H I N A
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HNA GROUP: Units Report Combined $15BB in Losses for 2020
---------------------------------------------------------
Caixin Global reports that HNA Group Co. Ltd.'s 13 listed companies
reported combined net losses amounting to nearly CNY100 billion
(US$15 billion) for 2020, as they set aside enormous sums to absorb
potential losses from the Chinese conglomerate's bankruptcy
restructuring.
Caixin relates that the sheer size of the reported losses offers a
clearer picture of the challenge that HNA's restructuring poses to
government efforts to deal with the hidden financial risks built up
by its sprawling private conglomerates. According to the report,
the single bankruptcy restructuring case, which covers HNA and 320
of its related companies, is the culmination of the years that the
conglomerate spent trying to crawl out from under the heap of debt
it amassed during a global buying binge that at one point swelled
its total assets to CNY1.2 trillion.
China-based HNA Group Co. Ltd. offers airlines services. The
Company provides domestic and international aviation
transportation, air travel, aviation maintenance, and aviation
logistics services. HNA Group also operates holding, capital,
tourism, logistics, and other business.
As reported in the Troubled Company Reporter-Asia Pacific, HNA
Group on Jan. 29, 2021 declared bankruptcy and restructuring after
a multi-year debt and liquidity crisis. The company was informed by
South China's Hainan High People's Court on Jan. 29 that "because
the company is unable to pay off its debts, related creditors
appealed to the court for the company's bankruptcy and
restructuring," HNA said.
According to Global Times, HNA Group said it will cooperate with
the court for judicial review, carry forward the debt disposal, and
support the court's protection of the legal rights of its creditors
so as to ensure the smooth operations of the company.
On March 15, 2021, a court in Hainan approved the merger and
restructuring of 320 affiliates of HNA Group into the parent
company, paving way for the conglomerate to eventually emerge from
bankruptcy, Caixin Global said.
HNA Group was designated as administrator of the merger, and
creditors will hold their first meeting June 4, according to a
statement issued March 15 by the Hainan High People's Court. The
320 units will be integrated into HNA group's bankruptcy
reorganization, and the group will submit a restructuring plan to
the creditor meeting for approval, the court said.
PEKING UNIVERSITY: Ping An to Lead $11.3-Billion Restructuring
--------------------------------------------------------------
Nikkei Asia reports that Ping An Insurance Group and other
investors have agreed to contribute to an $11.3 billion bankruptcy
restructuring package to secure and rejuvenate a financially
troubled corporate empire established by China's top university.
Peking University Founder Group (PKU Founder), a state-owned
conglomerate founded by the university, has been in a Beijing
court-supervised bankruptcy proceeding since February 2020, Nikkei
discloses.
On April 30, court-appointed administrators reached an agreement
with Ping An and two municipal governments in the southern province
of Guangdong to lead the restructuring, according to Nikkei Asia.
Nikkei Asia, citing announcement from Ping An and the
administrators on April 30, relates that the New Founder Group will
be established based on assets held by PKU Founder and its four
other affiliated companies. The new company will cover four major
business segments: health care, finance, information technology and
education.
The new company has yet to be formed, and few details are
available, the report notes.
Ping An Life, a unit of Ping An Group, and Zhuhai Huafa Group, an
investment arm of the Zhuhai Municipal Government in Guangdong
Province, have agreed to acquire at least 73% of the new company.
The proceeds will be used to pay off creditors, Nikkei Asia notes.
Nikkei Asia says the creditors will be given a choice of receiving
cash, shares in the new company or a mixture of the two. If all
creditors demand repayment in cash, the investors will be required
to pay a total of CNY73.3 billion ($11.3 billion) to the
administrators, in installments. In this scenario, Ping An would
hold 70% of the new company's shares and Zhuhai Huafa 30%.
According to Nikkei Asia, Shenzhen Shenchao Technology Investment
-- a state investment company controlled by Shenzhen Municipal
Government and the remaining party among the three investors -- is
set to acquire 100% of Founder Microelectronics, an integrated
circuit maker under PKU Founder Group. Why this unit is to be
treated separately and other details regarding this part of the
deal have not been revealed.
Ping An, which is investing a maximum of CNY50.75 billion, said in
its statement on April 30 night that acquiring a majority stake in
the new entity would "further boost its strategic layout in the
health care sector and actively build a health care ecosystem." It
apparently expects synergies with its existing business portfolio,
centered on insurance and the medical business.
Nikkei Asia adds that the Shenzhen-based company also stressed that
taking part in a high-profile bankruptcy restructuring of a state
conglomerate run by the country's top university, will "further
enhance the company's comprehensive strength and corporate
reputation."
The deal, however, still requires approval from the banking and
insurance regulator as well as the court. Also, it is not all clear
whether the cash injection from the investors will meet creditors'
needs. According to the most recent data, the aggregate claim by
730 creditors is CNY249.39 billion, Nikkei Asia discloses.
About Peking University Founder
Chinese state-owned Peking University Founder Group Corp. provides
information technology services. The Company offers software
development, electronic publishing system development, smart city
solution development, data operation, and other services. Peking
University Founder Group also operates financing, medical
technology development, and other businesses.
On Feb. 19, 2020, Founder Holdings Limited received a notification
letter from Peking Founder, regarding a civil order and decision
letter received by Peking Founder from The First Intermediate
People's Court of Beijing. Pursuant to the civil order and decision
letter, the Court decided to accept the application made by Bank of
Beijing Co., Ltd. for the initiation of restructuring procedure
against Peking Founder, and appointed Peking Founder liquidation
team as the administrator of Peking Founder. The Peking Founder
liquidation team consists of, among others, the People's Bank of
China, the Ministry of Education of the People's Republic of China,
relevant financial regulators and relevant departments of Beijing
Municipal Government.
Bank of Beijing Co. Ltd., one of the creditors of Peking University
Founder Group Corp., asked a court to restructure the indebted
state-owned conglomerate in February 2020, according to Caixin
Global.
[*] CHINA: Life is Still Far From Normal for Small Businesses
-------------------------------------------------------------
Smaller businesses are proving to be a weak link in China's
economic recovery as they struggle to fully bounce back from the
effects of Covid-19, the Wall Street Journal reported.
Like the U.S., China has tens of millions of small and medium-size
private businesses, including restaurants and shops, which form the
backbone of everyday economic activity. They account for as much as
80% of urban jobs and at least half of China's tax revenue.
While businesses have benefited from China's strong rebound this
year, many are still trying to overcome weak consumer demand,
rising operating costs and tight credit from banks that don't want
to sink more money into wounded companies.
Their struggles add a layer of uncertainty to China's recovery.
Many small businesses are reluctant to hire more workers, surveys
show. Some say they are at risk of failing if conditions don't
improve substantially.
Close to 19% of China's small businesses shut down last year,
compared with 6.7% in 2019, according to a study released in March
by Tsinghua University involving more than 50,000 companies
nationwide.
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I N D I A
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A TO Z DEVELOPERS: CRISIL Keeps B+ Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of A to Z
Developers Limited (AZDL) continue to be 'CRISIL B+/Stable Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 9 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 10 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with AZDL for
obtaining information through letters and emails dated September
28, 2020 and March 17, 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 AZDL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AZDL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AZDL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
AZDL was originally incorporated in October 2007 as a private
limited company, A to Z Developers Pvt Ltd. It was reconstituted as
a closely held public limited company in 2013 by Mr. Pankaj Rana,
Mr. Vinod Kumar, Mr. Parminder Tewatia, and Mr. Devendra Kumar.
AZDL develops and sells residential and commercial projects.
Currently, the company is executing a residential project, Green
Estate Colony, in Muzaffarnagar (Uttar Pradesh).
BHARATHI VIDHYALAYA: CRISIL Cuts Rating on INR40cr Term Loan to D
-----------------------------------------------------------------
CRISIL Ratings has downgraded the ratings on the bank facilities of
Bharathi Vidhyalaya Educational Trust (BVET) to 'CRISIL D/CRISIL D'
from 'CRISIL BB/Stable/CRISIL A4+'. The downgrade reflects delays
in debt servicing by the company.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft Facility 5 CRISIL D (Downgraded from
'CRISIL A4+')
Proposed Long Term 25 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL BB/Stable')
Term Loan 40 CRISIL D (Downgraded from
'CRISIL BB/Stable')
The ratings continue to reflect BVET's limited scale of operations
in the highly competitive education sector, coupled with lack of
revenue diversity and exposure to regulatory risks. These
weaknesses are offset by strengths such as extensive industry
experience of the promoters.
Key Rating Drivers & Detailed Description
Weaknesses:
* Delays in servicing debt obligation: BVET has availed term loan
and there have been instances of delays in principal as well as
interest payments by the trust over the past few months on account
of stretched working capital requirements.
* Vulnerability to stringent regulations: Establishment and
operations of educational institutions are regulated by various
governmental and quasi-governmental agencies, such as the
University Grants Commission (UGC), MCI, AICTE, CBSE, universities,
state governments etc. Each body has detailed procedures for
granting permission to set up institutions, and approvals need to
be renewed every three or five years. Any non-compliance will
result in cancellation of affiliation, license etc. leading to loss
of reputation for the college and revenue for the trust
Strength:
* Extensive industry experience of the promoters: The promoters
have an experience of over 20 years in Education Services industry.
This has given them an understanding of the dynamics of the market,
and enabled them to establish relationships with the people across
the region. Extensive experience has led BVET to have adequate
infrastructure facilities for all streams with audio-visually
equipped classrooms, state-of-the art laboratories, library,
sophisticated computing facilities, transportation and hostel
facilities for students.
Liquidity: Poor
There have been delays in debt servicing
Rating Sensitivity factors
Upward Factor
* Track record of timely debt servicing for at least 90 days
* Improvement in business performance, leading to better liquidity
BVET was founded in 1997 by Mr. P R Velumani and his wife Mrs.
Amutham. The trust runs the Bharathi Vidhyalaya Matriculation
School in Gobichettipalayam (Tamil Nadu). The school is currently
running classes from pre-primary to 12th standard with a total
capacity of 3300 students. It is affiliated to both the Tamil Nadu
Education Board and the Central Board for Secondary Education.
COCHIN FROZEN: CRISIL Cuts Rating on INR27cr Packing Loan to D
--------------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facility of
Cochin Frozen Food Exports Private Limited (CFFEPL) to 'CRISIL
D/CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable/CRISIL A4
Issuer Not Cooperating'. The downgrade reflects the delays in debt
servicing as per information available in public domain
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 15 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Packing Credit 27 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
Proposed Long Term 3 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with CFFEPL for
obtaining information through letters and emails, dated May 23,
2020 and November 14, 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 has not received any information on either the financial
performance or strategic intent of CFFEPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL Ratings believes information available on CFFEPL is
consistent with 'Assessing Information Adequacy Risk'.
CFFEPL was set up in 1992 by Mr. K Prabhakaran. It processes and
exports shrimp and fish.
ETERNAL MOTORS: CRISIL Lowers Rating on INR10cr Loans to D
----------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long term bank
facilities of Eternal Motors Private Limited (EMPL) to 'CRISIL D'
from 'CRISIL BB/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL D (Downgraded from
'CRISIL BB/Stable')
Long Term Loan 1.95 CRISIL D (Downgraded from
'CRISIL BB/Stable')
Proposed Long Term 0.05 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL BB/Stable')
The rating reflects to reflect delays in servicing of debt
obligation and continuous overutilization in working capital limit
for more than 30 days.
The rating continues to reflect the extensive experience of the
promoter. These weaknesses are partially offset by the below
average financial risk profile and intense competition in the
automobile dealership industry.
Key Rating Drivers & Detailed Description
Weakness
* Delay in debt servicing: Due to stretched liquidity, there has
been delays in servicing of debt obligation and continuous
overutilization of working capital limit for more than 30 days.
* Below average financial risk profile: The financial risk profile
of company expected to remain below average with gearing of 3.5-4
times and TOL/ANW of 4-5 times. Its interest coverage ratio were
also below average at 1.2-1.4 times in past.
Strength
* Experience of the promoters: The promoters have an experience of
over two decades in automobile dealership industry. This has given
them an understanding of the dynamics of the market, and enabled
them to establish relationships with suppliers and customers.
Liquidity: Poor
The liquidity is poor marled with delay in servicing of debt
obligation and continuous overutilization of working capital limit
for more than 30 days
Rating Sensitivity Factors
Upward factors
* Track record of timely debt servicing for atleast over 90 days
* Improvement in working capital cycle
EMPL was incorporated in 1998. It is an authorized dealer of Maruti
Suzuki India Limited (MSIL) passenger and commercial vehicles.
GLOBAL HEALTH: CRISIL Lowers Rating on INR110cr LT Loan to D
------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long term bank
facilities of Global Health Research and Management Institute
(GHRMI) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable
Issuer Not Cooperating' after factoring in delays in repayment of
term debt obligations over the past three months.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 110 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with GHRMI for
obtaining information through letters and emails dated August 31,
2019, February 6, 2020 and November 21, 2020 among others, apart
from telephonic communication. However, the issuer has remained non
cooperative.
'Investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned or
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-cooperation by a rated entity may be a result of deterioration
in its credit risk profile. 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 GRHMI, thereby restricting
CRISIL's ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on GHRMI
is consistent with 'Assessing Information Adequacy Risk'.
GHRMI is a registered society under Rajasthan Society Registration
Act. They are setting up a Multi-Specialty Hospital named Pacific
Institute of Medical Science at Udaipur, Rajasthan with 750 beds
and medical college offering MBBS course with Students intake of
150 p.a. at Udaipur.
H. K. TIMBERS: CRISIL Cuts Rating on INR14.75cr Loans to D
----------------------------------------------------------
CRISIL Ratings has downgraded the ratings on the bank facility of
H. K. Timbers Private Limited (HKTPL) to 'CRISIL D/CRISIL D Issuer
Not Cooperating' from 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating', due to delay in debt servicing and continuous
overutilization in working capital limits over 30 days.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Letter of Credit 8.75 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with HKTPL for
obtaining information through letters and emails dated February 12,
2020 and August 15, 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 HKTPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on HKTPL
is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, CRISIL Ratings has
downgraded the ratings on the bank facility of HKTPL to 'CRISIL
D/CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable/CRISIL A4
Issuer Not Cooperating', due to delay in debt servicing and
continuous overutilization in working capital limits over 30 days.
HKTPL, set up in December 2012, is promoted by the Rudani family.
It has taken over the business of its group entity, HKT, engaged in
processing and sale of timber. HKTPL has a timber processing
facility in Gandhidham, Gujarat.
JINDAL WOOD: CRISIL Lowers Rating on INR21cr Loans to D
-------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
Jindal Wood Products Private Limited (JWPPL) to 'CRISIL D/CRISIL D
Issuer Not Cooperating' from 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating', as the entity has delayed in servicing its debt
obligation.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Letter of Credit 17 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
Packing Credit 3 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with JWPPL for
obtaining information through letters and emails dated February 22,
2021 apart from telephonic communication. However, the issuer has
remained non-cooperative.
'Investors, lenders and all other market participants should
exercise due caution with reference to the ratings
assigned/reviewed with the suffix 'issuer not cooperating' as the
ratings are arrived at without any management interaction and are
based on best-available or limited or dated information on the
company. Such non-cooperation 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 JWPPL, which restricts the
ability of CRISIL Ratings to take a forward-looking view on the
entity's credit quality. CRISIL Ratings believes that rating action
on JWPPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last-available information, CRISIL Ratings has
downgraded its ratings on the bank facilities of JWPPL to 'CRISIL
D/CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable/CRISIL A4
Issuer Not Cooperating', as the entity has delayed in servicing its
debt obligation.
JWPPL was incorporated in 1990. The company is based in Kandla
(Gujarat) and processes and trades in timber logs from teakwood and
hardwood.
KALOSONA HIMGHAR: CRISIL Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Kalosona
Himghar Udyog Private Limited (KHUPL) continue to be 'CRISIL
B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.5 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Long Term 0.4 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating)
Working Capital 0.6 CRISIL B+/Stable (Issuer Not
Term Loan Cooperating)
CRISIL Ratings has been consistently following up with KHUPL for
obtaining information through letters and emails dated September
28, 2020 and March 17, 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 KHUPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KHUPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
KHUPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
KHUPL, formed in 2006 by Mr. Priyo Mohan Dey and Mr. Mukti Padho
Kundu, provides cold storage facility for potatoes and trades in
potatoes. The promoters also process rice through group companies,
and have over three decades of experience. The cold storage is in
Arambagh, West Bengal, and has capacity of 170,000 quintals.
KAY EM COPPER: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Kay Em Copper Private Limited
M-15/A, New Mandoli Industrial Area
Saboli, Shahdara
Delhi DL 110093
Insolvency Commencement Date: April 19, 2021
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: October 16, 2021
Insolvency professional: Dhiren S Shah
Interim Resolution
Professional: Dhiren S Shah
B-102 Bhagirathi Niwas
Near Natraj Studio
Sir M V Road
Andheri (East)
Mumbai 400069
E-mail: dss@dsshah.in
ip1@dsshah.in
Last date for
submission of claims: May 7, 2021
KTC AUTOMOBILES: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of KTC
Automobiles Private Limited continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL D (Issuer Not
Cooperating)
Inventory Funding 6 CRISIL D (Issuer Not
Facility Cooperating)
Long Term Loan 5.85 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with KTC for
obtaining information through letters and emails dated September
28, 2020 and March 17, 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 KTC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KTC
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
KTC continues to be 'CRISIL D Issuer Not Cooperating'.
Set up in 1998 as a partnership firm, KTC was reconstituted as a
private limited company in 2004. The company, based in Kozhikode,
Kerala, operates service centres for Hyundai vehicles in Kerala.
MASCONS ENGINEERING: CRISIL Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Mascons
Engineering & Contracting Company Private Limited continues to be
'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with Mascons for
obtaining information through letters and emails dated September
28, 2020 and March 31, 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 MASCONS, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
MASCONS is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of MASCONS continues to be 'CRISIL D Issuer Not
Cooperating'.
Incorporated in 2004, in Chennai and promoted by Mr. Said Mohammed,
Mascons undertakes civil construction and real estate development.
MUNISH FORGE: CRISIL Lowers Rating on INR30cr Cash Credit to D
--------------------------------------------------------------
CRISIL Ratings has downgraded the ratings of Munish Forge Private
Limited (MFPL)to 'CRISIL D/CRISIL D Issuer Not Cooperating' from
'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating', as company has
incurred delays in servicing of debt obligations for the working
capital facilities availed by the company.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 6 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
Cash Credit 30 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Letter of Credit 14.2 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
Proposed Long Term 1.2 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Term Loan 3 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with MFPL for
obtaining information through letters and emails dated January 26,
2021 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 MFPLL, which restricts CRISIL
Ratings ability to take a forward looking view on the entity's
credit quality. CRISIL Rating believes that rating action on MFPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, CRISIL Ratings has downgraded the
ratings to 'CRISIL D/CRISIL D Issuer Not Cooperating' from 'CRISIL
B+/Stable/CRISIL A4 Issuer Not Cooperating', as company has
incurred delays in servicing of debt obligations for the working
capital facilities availed by the company.
MFPL was incorporated in 1996 in Ludhiana, Punjab, promoted by Mr.
Davinder Bhasin and his family members. The company manufactures
flanges, auto parts, forgings, and scaffoldings.
PCP INTERNATIONAL: CRISIL Cuts Rating on INR65cr Bank Loan to D
---------------------------------------------------------------
CRISIL Ratings has downgraded its ratings on PCP International
Ltd's bank facilities to 'CRISIL D/CRISIL D Issuer Not Cooperating'
from 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating', as the
company has delayed debt servicing for December 2020 and January
2021, due to poor liquidity, resulting from delayed receivables.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 65 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
Cash Credit 15 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Proposed Term Loan 11.35 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with PCP for
obtaining information through letters and emails June 29, 2020 and
December 18, 2020 among others, apart from telephonic
communication. However, the issuer has remained non-cooperative.
'Investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned or
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-cooperation by a rated entity may be a result of deterioration
in its credit risk profile. 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 PCP, which restricts its ability
to take a forward-looking view on the entity's credit quality.
CRISIL Ratings believes the rating action on PCP is consistent with
'Assessing Information Adequacy Risk'. Based on the last available
information, CRISIL Ratings has downgraded its ratings on PCP's
bank facilities to 'CRISIL D/CRISIL D Issuer Not Cooperating' from
'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating', as the company
has delayed debt servicing for December 2020 and January 2021, due
to poor liquidity, resulting from delayed receivables.
Incorporated in 1969 and promoted by Mr. H S Meijee,
Chandigarh-based PCP erects, fabricates and commissions boiler
turbines for power plants under a boiler, turbine and generator
package. Operations are managed by the promoter's son, Mr. Balraj
Singh Meijee.
S.K. RICE: CRISIL Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of S.K. Rice
Industries (SKRI) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SKRI for
obtaining information through letters and emails dated September
28, 2020 and March 17, 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 SKRI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SKRI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SKRI continues to be 'CRISIL D Issuer Not Cooperating'.
Set up in 2009, Devenagere (Karnataka) based SKRI is a partnership
firm engaged in milling and processing of paddy into rice, rice
bran and husk. It has an installed paddy milling capacity of 3
tonnes per hour and operates in two shifts. The firm is promoted by
Mrs. Syyed Rehana along with her family members, Mr. Syyed Altaf
Ahmed and Mr.Syyed Israr Ahmed.
SCANIA STEELS: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Scania Steels
and Powers Limited continue to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL D (Issuer Not
Cooperating)
Cash Credit 24.43 CRISIL D (Issuer Not
Cooperating)
Funded Interest 6.80 CRISIL D (Issuer Not
Term Loan Cooperating)
Letter of Credit 3.00 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 5.60 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 23.76 CRISIL D (Issuer Not
Cooperating)
Working Capital 12.41 CRISIL D (Issuer Not
Term Loan Cooperating)
CRISIL Ratings has been consistently following up with Scania for
obtaining information through letters and emails dated September
28, 2020 and March 31, 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 Scania, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
Scania is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of Scania continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Scania was originally set up by Mr. Satish Garg and his family
(from New Delhi) in 1995 and was engaged in manufacture of sponge
iron. In 2006-07, Mr. Sanjay Gadodia, based in Rourkela (Odisha),
purchased this company. Scania has also established a rolling
mill.
SHAKTHI TECH: CRISIL Lowers Rating on INR21.43cr Term Loan to D
---------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with
Securities and Exchange Board of India guidelines, had migrated its
ratings on the bank facilities Shakthi Tech Manufacturing India
Private Limited (STMIPL) to 'CRISIL B+/Stable/CRISIL A4; issuer not
cooperating'. However, STMIPL has subsequently started sharing
requisite information for carrying out a comprehensive review of
the ratings. Consequently, CRISIL Ratings is donwgraded its ratings
on the bank facilities of STMIPL to 'CRISIL D/CRISIL D' from
'CRISIL B+/Stable/CRISIL A4; issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.5 CRISIL D (Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Packing Credit 2.0 CRISIL D (Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
Proposed Long Term 14.07 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Term Loan 21.43 CRISIL D (Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
The ratings reflect delay in the servicing of debt obligations.
The ratings reflect STMIPL's vulnerability to cyclicality in
end-user industry and highly leveraged capital structure. The above
weaknesses are partly offset by extensive industry experience of
the promoters.
Key Rating Drivers & Detailed Description
Weaknesses:
* Vulnerability to cyclicality in end-user industry: STMIPL's
performance is closely linked with the investment climate in its
end-user industry which is cyclical in nature. Any slowdown in its
end-user industries could adversely impact the business risk
profile of the STMIPL.
* Highly leveraged capital structure: STMIPL has average financial
profile marked by high total outside liabilities to tangible
networth (TOL/TNW) of about 5.8 times as on 31st March, 2020.
However, supported by its healthy operating profitability, debt
protection remains average marked by interest coverage of about
2.28 times for the fiscal 2020.
Strength:
* Extensive industry experience of the promoters: The promoters
have an experience of over 15 years in industrial machinery and
consumables industry. This has given them an understanding of the
dynamics of the market, and enabled them to establish relationships
with suppliers and customers.
Liquidity: Poor
The company is estimated to generate accruals in the range of
INR2-3 crores over the medium term against repayment obligation of
around INR2.5 crores annually. The company's bank limit have been
utilized at an average of 70% during the last 12 months ended Nov
2020. In addition, need based fund support from promoters as in the
past should support its liquidity requirement over the medium term.
However, with large outstanding order (Rs 110 crores as of March
2021), the company is highly reliant on bank borrowings to support
its incremental working capital requirement and subsequently
liquidity is expected to remain weak over the medium term. The
company has availed the COVID moratorium form the bank.
Rating Sensitivity factors
Upward factor:
* Increase in scale of operations and profitability
* Total outside liabilities to tangible networth (TOLTNW) of less
than 3 times.
* Timely repayment of debt obligations
STMIPL was incorporated in June 2013. STMIPL is owned & managed by
Mr. M. Angou and Mrs. Usha Angou. STMIPL is engaged in
manufacturing of machined casting and pump parts such as automobile
components such as shaft sleeves, wheel fork, mixed flow impellers
and industrial pump/valve components such as pump/valve body, motor
support (encasing) of pumps/ valves among others. STMIPL
manufacturing facility is located in Coimbatore, Tamilnadu.
SIVAGURU SPINNING: CRISIL Cuts Rating on INR15cr Cash Credit to D
-----------------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
Sivaguru Spinning Mills Private Limited (SSMPL) to 'CRISIL D/CRISIL
D' from 'CRISIL B+/Stable/CRISIL A4'. The ratings reflect delay in
the servicing of debt obligations.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.28 CRISIL D (Downgraded from
'CRISIL A4')
Cash Credit 15.00 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Term Loan 3.34 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Working Capital 1.45 CRISIL D (Downgraded from
Demand Loan 'CRISIL B+/Stable')
The rating reflects SSMPL's modest scale of operations in a
competitive textile cotton yarn business, working capital-intensive
operations, and below average financial risk profile. These
weaknesses are partially offset by the extensive industry
experience of the promoters.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations in a competitive cotton yarn business:
SSMPL's business profile is constrained by its modest scale
indicated by estimated revenues of INR75 crore in fiscal 2020, in
the intensely competitive cotton textile industry and this will
continue to limit its operating flexibility. The revenue growth
will remain under pressure in fiscal 2021 because of impact of
COVID-19 outbreak and containment measures initiated by the
government.
* Working capital-intensive operations: Gross current assets (GCAs)
were at 200-255 days over the 3 fiscals ended March 31, 2020. GCAs
is estimated at 265 days as on March 31, 2020, driven by sizable
debtors and moderate inventory.
* Below average financial risk profile: The company has a below
average financial risk profile marked by an aggressive capital
structure. The company's capital structure remained leveraged
marked by total outside liability to tangible networth estimated at
5.6 times as on 31 March, 2020 largely on account of working
capital intensive nature of operations. The company's gross current
asset days remained high at over 250 days as on 31 March, 2020.The
interest cover and net cash accrual to total debt are moderate
estimated at 2.2 times and 0.13 times for fiscal 2020.
Strengths:
* Extensive industry experience of the promoter: The promoter has
an experience of over 2 decades in the cotton textile industry.
This has given him a strong understanding of market dynamics and
enabled him to establish healthy relationships with suppliers and
customers.
Liquidity: Poor
Liquidity of the company remains stretched with high bank limit
utilization and minimal cushion between cash accruals and repayment
obligations. Bank limit utilization was high at around 90% in the
past few months. The accruals are expected to be in the range of
INR1.5 crore to INR2.5 crore, per annum, over the medium term
against which it is likely to have a repayment obligation of INR1.2
crore. Further, the company has availed the COVID moratorium from
the bank.
Rating Sensitivity factors
Upward factors
* Healthy revenue growth, coupled with stable margin, leading to
better cash accrual.
* Improvement in working capital management with GCA at less than
200 days.
* Timely repayment of debt obligations.
SSMPL is owned and managed by Mr. Sivakumar. The firm is engaged in
manufacturing textile products such as recycled yarn, blended yarn,
cotton towel, gada cloth etc.
SUBRA ENTERPRISES: CRISIL Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Subra
Enterprises (SE) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SE for
obtaining information through letters and emails dated September
28, 2020 and March 17, 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 SE, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SE is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of SE
continues to be 'CRISIL D Issuer Not Cooperating'.
SE, set up in 2012, is based in Chennai. It trades in agro
commodities. Its operations are managed by Mr. A S Sharath Chandran
and his son, Mr. Shiyaam Sharath.
SWASTIK COAL: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Swastik Coal
Corporation Private Limited (SCCPL) continue to be 'CRISIL D/CRISIL
D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 9.85 CRISIL D (Issuer Not
Cooperating)
Cash Credit 15.00 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 252.00 CRISIL D (Issuer Not
Cooperating)
Overdraft Facility 18.15 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SCCPL for
obtaining information through letters and emails dated September
28, 2020 and March 17, 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 SCCPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SCCPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SCCPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
For arriving at the ratings, CRISIL Ratings has combined the
business and financial risk profiles of SCCPL, Arka Carbon Fuels
Pvt Ltd, and Shree Ganpatlal Onkarlal Agarwal & Company (Shree
Ganpatlal). This is because the three entities, together referred
to as the Swastik group, are held and managed by the same promoters
and have operational and financial linkages.
SCCPL and Arka Carbon, based in Indore (Madhya Pradesh), trade in
indigenous and imported coal. The group also provides logistic
services through Shree Ganpatlal. Established in 1984 by members of
the Bindal family for trading in indigenous coal, the group is now
focused on imported coal; it both directly imports coal from
international suppliers and relies on merchant importers in India.
VEERGANAPATHI STEELS: CRISIL Keeps D Rating in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Shri
Veerganapathi Steels Private Limited (SVSPL) continues to be
'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SVSPL for
obtaining information through letters and emails dated September
28, 2020 and March 17, 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 SVSPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SVSPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SVSPL continues to be 'CRISIL D Issuer Not Cooperating'.
SVSPL was established in 1998 and trades in steel products such as
channels, pipes, angles, plates, thermo-mechanically treated bars,
and round/square bars.
VENUS ROLLING: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Venus Rolling
Mills Private Limited (VRMPL) continue to be 'CRISIL D/CRISIL D
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.20 CRISIL D (Issuer Not
Cooperating)
Cash Credit 25.00 CRISIL D (Issuer Not
Cooperating)
Term Loan 0.80 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with VRMPL for
obtaining information through letters and emails dated September
28, 2020 and March 17, 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 VRMPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VRMPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
VRMPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
VRMPL was set up by Mr. Yatendra Singh Pawar in 2005. The company
manufactures mild steel angles of various sizes, used in the
construction and power transmission sectors.
=================
S I N G A P O R E
=================
GOLDEN ENERGY: Fitch Assigns B+ Rating on Proposed USD Notes
------------------------------------------------------------
Fitch Ratings has assigned a 'B+' rating to Golden Energy and
Resources Limited's (GEAR, B+/Stable) proposed US-dollar senior
notes.
The proposed notes are rated at the same level as GEAR's Issuer
Default Rating (IDR). GEAR plans to use the proceeds from the
proposed notes to repay all or the majority of existing debt at the
holding company level.
GEAR's rating reflects the strong business profile of its key
thermal coal mining subsidiary, PT Golden Energy Mines Tbk (GEMS,
B+/Stable). GEMS' production volumes rose, and it maintained its
profitability in spite of coal price weakness in 2020. GEAR's
rating also benefits from its diversification via investments in
metallurgical coal and gold in Australia. The acquisitions are
expected to enhance the group's credit profile over the medium
term, although contribution to GEAR's cash flow is likely to remain
minimal over the next two years.
GEAR's rating is based on the credit metrics with proportionate
consolidation of 62.5%-owned GEMS, as Fitch assesses GEAR's linkage
with GEMS as moderate, and full consolidation of Stanmore Coal
after adjusting for minority leakages. GEAR's standalone holding
company credit metrics are moderate, mitigating structural
subordination risk.
KEY RATING DRIVERS
Cost Flexibility: Fitch expects GEMS' flexibility to manage its
costs in line with coal price movements and its low-cost structure
with life-of-mine strip ratio of 4.2x to support its operating cash
flows. GEMS' EBITDA per tonne improved modestly to USD4.4 in 2020
from USD4.0 in 2019, driven by its ability to meaningfully curtail
cash costs by reducing the strip ratio and cutting contract mining
rates to third-party contractors, and the benefits from declining
fuel costs. Fitch expects GEMS to maintain its EBITDA per tonne a
USD4-5 after peaking at USD5.5 in 2021.
Increasing Production Scale: Fitch expects GEMS' production to
increase to close to 40 million tonnes (mt) in 2022 (2021E: 35mt,
2020: 34mt), in line with management expectations, subject to
regulatory approval of the production quota. Fitch believes GEMS'
strong compliance with requirements, including domestic market
obligations (DMO), mitigate the regulatory risk. GEMS needs minimal
capex on infrastructure to support rising volumes, and will spend
USD20 million-25 million annually over the next three years to
upgrade the capacity of hauling roads, coal handling plants and
barge loading facilities.
Robust Financial Profile: Fitch expects GEAR's consolidated
financial profile to improve as EBITDA contribution from Stanmore
Coal increases after operations ramp up at its new mining area.
GEAR raised its effective stake in Stanmore Coal, an Australian
metallurgical coal-mining company, to 60% in 2020, which supports
GEAR's efforts to diversify its business profile.
Fitch expects GEAR's consolidated group leverage, measured by net
debt/EBITDA, to remain at or below 1x from 2021 (2020: 1.5x). Fitch
also expects GEAR's holding company standalone interest cover to
improve to about 2.8x in 2021, after weakening in 2020 to around
1.2x (excluding final dividend of 2020); assuming the company
refinances its maturing loan facility.
Acquisitions Support Diversification: Fitch expects acquisition of
the Stanmore Coal stake and a 50% stake in the Ravenswood gold mine
to support GEAR's business diversification. Fitch expects Stanmore
Coal to contribute to 20%-25% of the group's EBITDA starting 2022.
However, dividends from the acquisitions will remain minimal over
the next two years in light of their own large capex plans.
GEMS' Limited Mine Diversity: The PT Borneo Indobara (BIB) mine
accounts for more than 90% of GEMS' total production and 67% of its
proven and probable (2P) reserves. BIB's production ramp-up plans
mean the contribution from GEMS' other mines will remain small over
the next four years. The reserve concentration risk is partly
offset by the geographical spread, with about 30% of 2P reserves
outside of Kalimantan. Operational risk is mitigated by agreements
with leading Indonesian mining contractors, such as PT Saptaindra
Sejati, a subsidiary of PT Adaro Energy Tbk, and PT Putra Perkasa
Abadi.
Long Reserve Life: GEMS has one of the largest reserves among
coal-mining peers in Indonesia. GEMS' reserves are the
fourth-largest in Indonesia, with proven reserves of around 807mt
at end-2020 (proven and probable reserves: 1,033mt), or a reserve
life of 20.2 years based on its target annual production of 40mt.
GEMS' BIB mine accounts for 72% of the proven reserves at 589mt,
with a second-generation licence valid until 2036.
Moderate Linkages: Fitch maintains its assessment of moderate
linkages between GEAR and GEMS under Fitch's Parent and Subsidiary
Linkage Rating Criteria, with moderate legal and operational ties
GEAR has majority representation on GEMS' board, and is involved in
managing the operation. GEAR's standalone operations are not
significant and it depends on dividends from its subsidiaries,
primarily GEMS, to service its debt.
An agreement with GEMS' shareholders ensures that the company will
maximise profit distribution by paying at least 80% of its free
cash flow as dividends. However, GMR Coal Resources Pte. Ltd, which
owns 30% of GEMS, has also appointed key management personnel to
the company and has veto power in major corporate transactions.
DERIVATION SUMMARY
The ratings on GEAR are based on the financial metrics of the
group, and factor in the group's adequate financial profile, large
reserve base of its key assets, the low-cost position of GEMS, and
the limited but improving scale of operations.
PT Indika Energy Tbk (BB-/Negative) has more integrated operations
across the thermal coal value chain, but GEAR benefits from
improving diversification after acquiring Stanmore Coal, although
the latter's contribution to cash flow will be minimal in the next
two years. The expected ramp-up in thermal coal production of
GEAR's key subsidiary - GEMS - should result in its volumes
reaching those of Indika in 2021. Indika's larger scale in terms of
EBITDA and well-established operations justify the one-notch
difference in their IDRs, as GEAR's key assets, GEMS and Stanmore,
are still ramping up production. The Negative Outlook on Indika
reflects the limited headroom in its rating because of Fitch's
expectations of weakening financial profile with high leverage.
Compared with PT Bayan Resources Tbk (BB-/Stable), GEAR's business
profile benefits from diversification into hard coking coal. While
GEMS now has larger scale in terms of volume, Bayan's better
profitability from its stronger energy-adjusted cost position
supports its stronger operating cash flow, explaining the one-notch
differential in their ratings. GEAR and Bayan have strong financial
profiles.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Index coal prices in line with Fitch's mid-cycle commodity
price assumptions, adjusted for the difference in calorific
value (thermal coal average Newcastle 6,000 kcal/kg, free on
board (FOB): USD72/tonne in 2021, USD66/tonne in 2022 and
2023, and USD63/tonne thereafter) and hard coking coal
(Australia premium spot, FOB: USD 135/tonne in 2021 and 2022,
and USD 140/tonne thereafter).
-- GEMS' total volume of coal sales to be at 34.9mt in 2021;
thereafter increasing by 3mt-5mt a year until 2024.
-- Capex incurred by GEMS at USD20 million in 2021, USD25
million-27 million a year during 2022-2023 before declining to
USD12 million in 2024.
-- Outflow of USD50 million in 2021 at GEAR for the equity
injection to acquire stake in Ravenswood gold mine.
-- Metallurgical coal sales volumes of 2.1mt-2.3mt per year in
2021-2024, and EBITDA contribution of around USD16 million-75
million per year from Stanmore Coal in 2021-2024.
-- Stanmore Coal capex of USD35 million-45 million a year during
2021 and 2022, declining to USD12 million and USD8 million in
2023 and 2024, respectively.
Key Recovery Rating Assumptions:
Recovery analysis for GEAR is on a going-concern basis in case of
bankruptcy and assumes that the company's subsidiaries, GEMS and
Stanmore, would be reorganised and not liquidated. Fitch has
assumed a 10% discount to the enterprise value (EV) to account for
bankruptcy-related administrative claims.
Going-Concern (GC) Approach
GEMS: The GC EBITDA estimate of USD150 million (FY21E
USD196million) reflects Fitch's view of a sustainable,
post-reorganisation EBITDA level upon which Fitch bases the EV.
Fitch has taken a lower sustainable EBITDA as a restructuring would
most likely be a result of a coal market downturn.
An EV multiple of 3.5x EBITDA is applied to the GC EBITDA to
calculate a post-reorganisation EV. The choice of this multiple
takes into consideration the EV/EBITDA multiple used in M&A
transactions in the sector through the commodity cycle.
In the recovery analysis, Fitch assumes repayment of all the debt
at the GEMS level, which is all senior secured bank debt. Fitch has
assumed 62.5% of the remaining equity value for the repayment of
debt at the GEAR level.
Stanmore: The GC EBITDA estimate of USD40 million (FY21E: USD16
million, FY22-24 average: USD62 million) reflects Fitch's view of a
sustainable, post-reorganisation EBITDA level upon which Fitch
bases the EV. Fitch has taken a higher sustainable EBITDA than in
FY21, as Fitch expects costs in the current year to be higher due
to the transition of the mining base. The sustainable EBITDA is
lower than the FY22-FY24 expected average as a restructuring would
most likely be the result of a downturn in the coal market.
An EV multiple of 3.5x EBITDA is applied to the GC EBITDA to
calculate a post-reorganisation EV. The choice of this multiple
takes into consideration the EV/EBITDA multiple used in M&A
transactions in the sector through the commodity cycle. GEAR's
acquisition of Stanmore was at about 3x, which was
opportunistically done in phases at the time when the reserve life
at Stanmore's current mining area was about to end. Fitch uses a
higher multiple of 3.5x as Fitch thinks that the development of
infrastructure to transition mining to Isaac Plains Downs would
help the valuation of Stanmore.
In the recovery analysis, Fitch assumes repayment of all the debt
at the Stanmore level. Fitch has assumed 60% of the remaining
equity value for the repayment of debt at the GEAR level.
This results in a Recovery Rating of 'RR2'. However, the Recovery
Rating for senior debt is capped at 'RR4' because under Fitch's
Country-Specific Treatment of Recovery Ratings Criteria, Indonesia,
where majority of the assets for GEAR group are located, falls into
Group D of creditor friendliness, and the Recovery Ratings of
issuers with assets in this group are subject to a cap of 'RR4'.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- GEAR's holding company's standalone EBITDA/interest cover of
above 2.5x on a sustained basis (2020: 1.2x)
-- Sustainable improvement in the scale of operations for the
group;
-- Net adjusted debt/EBITDA of less than 2x, based on a
proportionate consolidation of GEMS and full consolidation of
Stanmore Coal after adjusting for minority interests.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- GEAR's holding company's standalone EBITDA/interest cover of
below 2.0x;
-- Net adjusted debt/EBITDA of more than 3x, based on a
proportionate consolidation of GEMS and full consolidation of
Stanmore Coal after adjusting for minority interests.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: GEAR's healthy cash flow generation and
well-spread debt maturities underpin the group's adequate
liquidity. The group had USD380 million of debt at end-2020
(end-2019: USD320 million), which includes USD110 million of
short-term debt, of which USD58 million is a revolving
working-capital facility at GEMS. In comparison, it had cash and
cash equivalents of USD275 million. The debt increased primarily to
fund the investment in Stanmore Coal.
The group's debt, at GEMS and the holding-company level, has a
gradual repayment structure except for the bond repayment in 2023.
Fitch expects the group to require partial refinancing of the bond,
before 2023. Fitch regards the refinancing risk as low, after
taking into account GEAR's adequate credit profile and access to
banks and capital markets.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
GOLDEN ENERGY: Moody's Assigns B1 Rating to New Sr. Secured Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned a B1 rating to the proposed
senior secured notes to be issued by Golden Energy And Resources
Ltd (GEAR).
GEAR plans to use the proceeds to redeem all of its outstanding
$150 million notes due 2023 and repay outstanding bank loans at the
holding company. Any remaining funds will be used for general
corporate purposes.
RATINGS RATIONALE
"The proposed notes issuance will support GEAR's liquidity and
lengthen its debt maturity profile," says Maisam Hasnain, a Moody's
Assistant Vice President and Analyst.
Despite the possibility of a modest increase in total debt
following the notes issuance, GEAR's credit metrics will remain
strong over the next 12-18 months, with its adjusted leverage -- as
measured by adjusted debt/EBITDA -- remaining at 2.1x-2.3x.
While GEAR is an energy and resources holding company with
investments in coal and gold, its credit profile is supported by
its 62.5% ownership of PT Golden Energy Mines Tbk (GEMS), an
Indonesian thermal coal producer, with growing production volumes
and a long reserve life, supported by its integrated operations.
GEAR's B1 corporate family rating (CFR) and stable outlook reflect
the solid operating performance of GEMS despite challenging
conditions, and its improving business profile with growing
exposure to metallurgical coal and gold in Australia.
"GEAR's B1 CFR also incorporates our expectation that the company
will not undertake aggressive, debt-funded investments with respect
to its growth and diversification strategy," adds Hasnain, who is
also Moody's Lead Analyst for GEAR.
GEAR's other international ventures include an investment in
metallurgical coal via its 60% effective stake in Stanmore Coal,
and gold via its 50-50 joint venture in the Ravenswood gold mine
with private equity firm EMR Capital. Moody's estimates that these
businesses are unlikely to pay meaningful dividends over the next
12-18 months while they undertake large capital spending to expand
operations.
As a result, GEAR's credit profile will remain constrained by its
dependence on cash dividends from GEMS to service its debt. Moody's
expects GEAR to maintain its interest coverage from dividends
received at around 2.6x--3.9x over the next two years, up from
around 2.3x in 2020 and 1.6x in 2019.
While GEMS and its subsidiaries account for most of GEAR's earnings
and cash flow, GEMS is not a subsidiary guarantor of GEAR's US
dollar notes. As a result, noteholders' claims in a distressed
situation are subordinate to liabilities at GEMS and its operating
subsidiaries. This subordination risk is reflected in GEAR's B1
CFR. Also, GEMS' dividends will be subject to payments to minority
shareholders and dividend distribution tax. As a result, GEAR
receives only around 56% of dividends declared by GEMS based on its
62.5% ownership.
Moody's projections also assume that GEAR will continue to maintain
at least a 62.5% ownership stake in GEMS, following the 4.5% stake
sale in the Indonesian coal miner. This recent stake sale helps
GEMS comply with the minimum free float requirements needed to
remain listed on the Indonesian Stock Exchange.
In line with its diversification strategy, in April 2021 GEAR
announced an AUD15 million ($11 million) investment in North
American metallurgical coal producer, Allegiance Coal Limited via
private placement for an approximate 12% stake. The transaction is
expected to complete by May 2021.
In addition, GEAR's 60%-owned subsidiary Stanmore announced its
acquisition of the Millennium and Mavis Downs Mine (MMD mine) from
Peabody Energy Australia. This acquisition will be a 50-50 joint
venture with M Resources. The purchase consideration comprises of
AUD1.25 million of cash consideration upfront split equally between
Stanmore and M Resources, a royalty agreement capped at AUD1.25
million, and super royalties of up to $3.5/ton for a maximum of
five years payable to Peabody in the event of premium hard coking
coal prices staying above $175/ton.
The upfront cash outlay for the investments in Allegiance Coal and
the MMD mine are relatively small, and can be funded via GEAR and
Stanmore's internal cash sources. The investments are also in line
with GEAR's geographic and commodity diversification strategy,
helping improve the company's business profile. Nonetheless, they
expose the company to execution and integration risks. Moreover, an
increasing number of unconsolidated investments adds to the
complexity of the group structure.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
The stable outlook reflects Moody's expectation that GEAR will
continue to develop and grow its coal and gold mine operations,
while maintaining prudent operating and financial policies.
An upgrade is unlikely over the next 12 months, given the large
capital spending requirements and execution risk associated with
GEAR's growth and diversification plans, GEAR's cash flow
concentration and its ownership structure.
Nevertheless, the rating could be upgraded over time if GEAR (1)
continues to increase its scale, (2) generates steady dividends
from all of its investments, (3) is not required to provide
additional funding to support these businesses, and (4) maintains
the debt servicing ability of the holding company, such that its
interest coverage from dividend receipts exceeds 3.0x — excluding
the interest reserve account — on a sustained basis.
Conversely, GEAR's rating could be downgraded as a result of (1) an
inability to execute its current growth and diversification plans;
(2) aggressive financial policies, including continued debt-funded
investments; (3) weakening industry fundamentals or a higher cash
usage at GEMS, including higher-than-expected capital spending,
which reduces the cash flow available for paying dividends to GEAR;
or (4) any signs of increased related-party transactions including
continued funding support rendered to its subsidiary and joint
venture investments.
Credit metrics indicative of a downgrade include GEAR's interest
coverage on a standalone basis falling below 1.5x or consolidated
adjusted debt/EBITDA of remaining above 3.0x.
The principal methodology used in this rating was Mining published
in September 2018.
Listed on the Singapore Stock Exchange, Golden Energy And Resources
Ltd (GEAR) is an energy and resources company with investments in
coal and gold. Its primary asset is its 62.5% stake in PT Golden
Energy Mines Tbk, an Indonesian thermal coal producer with coal
mines located in Kalimantan and Sumatra. GEAR also owns a 60%
effective stake in Australian metallurgical coal producer Stanmore
Coal, and a 50% joint venture stake in Australian gold producer
Ravenswood Gold Mine.
HYFLUX LTD: Gets 6 Final Offers with One Covering Retail Investors
------------------------------------------------------------------
Bloomberg News reports that crisis-hit Singaporean water-treatment
company Hyflux Ltd. has six final offers including one to
restructure the entire firm, after an April 30 target for
finalizing binding term sheets, a person familiar with the matter
said.
Bloomberg relates that the restructuring bid is the only offer that
takes into account retail investors in Hyflux's perpetual
securities and preference shares, according to the person, who
asked not to be identified because the matter is private.
About 34,000 individual investors had put money into the
once-highflying firm before it stumbled in 2018. Some of them had
previously said they don't expect to recover much of anything from
their investments, according to Bloomberg.
Bloomberg says the remaining five bids are for specific assets of
the company, while some assets attracted no interest at all, the
person said, without giving any further details.
Picking a bidder for Hyflux is an urgent task because the company
is running out of money after a restructuring process that's
dragged on for nearly three years, Bloomberg states. It has just
enough cash to survive five months from Jan. 31, Bloomberg reported
in March. It went under a judicial manager in November last year,
extending a long wait for its creditors and the individual
investors.
All the offers for Hyflux are from overseas companies and some of
them are from suitors who had expressed interest before judicial
manager Borrelli Walsh took control, the person said, without
naming any bidder, Bloomberg relays.
Borrelli Walsh is seeking to extend its term by 60 more days to
July 14, the company said in filing on May 3, Bloomberg reports.
The judicial manager had received on Feb. 16 a 90-day extension of
its term until May 15 from a Singapore court, according to a
document requested from the court by Bloomberg.
Hyflux had earlier said it would finalize binding term sheets with
selected investors on or around April 30, while negotiating and
executing definitive agreements at a later decided date, according
to a filing last month, adds Bloomberg.
About Hyflux Ltd
Singapore-based Hyflux Ltd -- https://www.hyflux.com/ -- provides
various solutions in water and energy areas worldwide. The company
operates through two segments, Municipal and Industrial. The
Municipal segment supplies a range of infrastructure solutions,
including water, power, and waste-to-energy to municipalities and
governments. The Industrial segment supplies infrastructure
solutions for water to industrial customers. It has business
operations across Asia, Middle East and Africa.
On Nov. 17, 2020, the High Court of Singapore appointed Hamish
Alexander Christie and Patrick Bance of Borrelli Walsh Pte. Limited
as joint and several judicial managers of Hyflux Ltd.
Borrelli Walsh is the financial adviser of an unsecured working
group of banks comprising Mizuho, Bangkok Bank, BNP Paribas, CTBC
Bank, KfW, Korea Development Bank, and Standard Chartered Bank,
according to The Business Times. The group had applied to put the
ailing water treatment firm under judicial management, BT said.
=====================
S O U T H K O R E A
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SAMSUNG HEAVY: Net Loss Widens to KRW535.9BB in Q1 Ended March 31
-----------------------------------------------------------------
Yonhap News Agency reports that Samsung Heavy Industries Co. on May
4 said its loss expanded in the first quarter from a year ago due
to the COVID-19 pandemic and a surge in prices of steel plates.
Net loss expanded to KRW535.9 billion (US$477.4 million) in the
January-March period, from a net loss of KRW227 billion a year ago,
the company said in a regulatory filing, Yonhap discloses.
Operating loss posted KRW506.8 billion in the period, narrowing
from an operating loss of KRW47.8 billion a year earlier.
Sales fell 13.8 percent on-year to KRW1.57 trillion in the first
quarter.
"The operating loss stemmed from increased cost caused by a rise in
prices of steel plates, allowances and the evaluation losses from
its five drill ships that are the company's inventory assets,"
Samsung Heavy, as cited by Yonhap, said in a separate statement.
Yonhap relates that Samsung Heavy predicted that it is expected to
post KRW6.9 trillion in sales and KRW760 billion in operating loss
this year.
On the back of recent brisk new orders, the shipbuilder revised up
its annual order target to $9.1 billion from the current $7.8
billion, the report notes.
The company has won orders for 42 ships worth $5.1 billion in the
first quarter of the year.
As part of efforts to improve its financial health, Samsung Heavy
plans to push for a capital reduction by cutting the face value of
its shares by 80 percent from KRW5,000 to KRW1,000, Yonhap says.
Yonhap adds that the capital reduction will not decrease the number
of its outstanding shares, so it will not hurt the valuation of
shareholders' holdings, the shipbuilder said.
The company will also raise KRW1 trillion by selling its new
shares, it said. But Samsung Heavy said its cash flow is in good
shape, adding its cash on hand reached KRW1.2 trillion, the report
notes.
About Samsung Heavy
Samsung Heavy Industries Co., Ltd. manufactures crude oil tankers,
container vessels, bulk carriers, cruisers, and passenger ferries.
The Company also produces steel and bridge structures, and material
handling equipment. In addition, Samsung Heavy Industries provides
civil engineering, architectural, and plant construction services.
Samsung Heavy reported a net loss of KRW1.48 trillion in 2020,
compared to a loss of KRW1.31 trillion in 2019.
===============
T H A I L A N D
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THAI AIRWAYS: Is in Dispute with Labor Union Over Survival Plan
---------------------------------------------------------------
Bangkok Post reports that Thai Airways International Plc (THAI) is
in a dispute with its labor union over who should act as
administrators and execute the company's debt-rehabilitation
programme.
According to the report, THAI's PR department has announced that
its rehabilitation managers have nominated its independent
director, Piyasvasti Amranand, and the company's second vice
chairman, Chakkrit Parapuntakul, to execute the survival plan.
However, the ailing flagship carrier's labour union has also
written to Prime Minister Prayut Chan-o-cha to recommend Pirapan
Salirathavibhaga for the job, since the Finance Ministry is the
airline's majority shareholder and therefore has a say in key
appointments, the report says.
Bangkok Post relates that the union's recommendation has been
backed by 2,000 THAI employees on the online petition platform
Change.org. although the union has not explained why it prefers Mr
Pirapan over the other candidates.
Any changes to the candidate line-up needs to be made before the
airline's creditors meet on May 12 to decide on the rehab plan.
Only creditors eligible to vote on it are authorised to amend
either the plan or its administrators, Bangkok Post says.
According to Bangkok Post, THAI insists the rehab plan was designed
with creditors and the company's financial rehabilitation in mind.
Bangkok Post relates that THAI said it is ready to resume
operations as soon as its rehabilitation plan is given the go-ahead
by creditors and the Central Bankruptcy Court and when curbs on
flights due to the Covid-19 pandemic have been loosened.
In early March, the company submitted its rehabilitation plan to
the Legal Execution Department, covering debts amounting to about
410 billion baht and 13,000 creditors in total.
THAI's creditors will meet next week to vote on the rehabilitation
plan and if the majority of creditors vote in favour, it will be
forwarded to the Central Bankruptcy Court for consideration, said
acting president Chansin Treenuchagron.
About Thai Airways
Thai Airways International PCL (BAK:THAI) --
http://www.thaiairways.co.th/-- is the national carrier of
Thailand. The company provides air transportation, freight and
mail services on domestic and international routes including Asia,
Europe, North America, Africa and South West Pacific. The Company
is a state enterprise which is controlled by the government and
partly owned by the public.
As reported in Troubled Company Reporter-Asia Pacific on May 21,
2020, Thailand's cabinet approved a plan to restructure troubled
Thai Airways International Pcl's finances through a bankruptcy
court, the Southeast Asian country's prime minister said on May
19, 2020.
The plan for a court-led restructuring of the national carrier
replaces a previous proposal of a government-backed rescue package
that was heavily criticised in the country.
Thai Airways on May 27, 2020 said it appointed board members as
rehabilitation planners in a bankruptcy court submission.
On Sept. 14, 2020, Thailand's Central Bankruptcy Court approved
Thai Airways debt restructuring.
Thai Airways posted losses every year after 2012, except in 2016.
In 2019, it reported losses of THB12.04 billion.
The company's shareholders' equity turned negative at minus THB18.1
billion ($580 million) as of June. While its total liabilities
ballooned to THB332.1 billion, a 36.7% increase from the end of
2019, its cash and cash equivalents fell by 35.5% to THB13.9
billion, according to the Nikkei Asia.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2021. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
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