/raid1/www/Hosts/bankrupt/TCRAP_Public/210519.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 19, 2021, Vol. 24, No. 94
Headlines
A U S T R A L I A
BAMBRA PRESS: Creditors Accept DOCA, Owner to Take Over Business
CROWN RESORTS: Rejects Blackstone's US$6.5BB Takeover Bid
ESPLANADE BRIGHTON: Second Creditors' Meeting Set for May 24
GPS CONSTRUCTION: First Creditors' Meeting Set for May 26
HOPKINS EMPIRE: Second Creditors' Meeting Set for May 24
HUNTER CAPITAL: Second Creditors' Meeting Set for May 24
LANEWAY GREENS: First Creditors' Meeting Set for May 26
LASH HOPKINS: Second Creditors' Meeting Set for May 24
NOLD TRADING: Second Creditors' Meeting Set for May 21
NORTH QUEENSLAND EXPORT TERMINAL: S&P Affirms 'BB-' ICR
VOYAGE AUSTRALIA: S&P Assigns Prelim. 'BB-' Issuer Credit Rating
C H I N A
BAOJI INVESTMENT: Fitch Lowers LT IDRs to 'BB+', Outlook Stable
GOLDEN EAGLE: Fitch Raises LT IDR to 'BB+', Outlook Stable
REDSUN PROPERTIES: Fitch Puts B+ Rating to Proposed USD Sr. Notes
I N D I A
AGRI VENTURE: CARE Keeps D Debt Rating in Not Cooperating
AIR INDIA: Cairn Energy Sue Over US$1.2BB Arbitration Award
ANNAPOORNA ENTERPRISES: CARE Keeps Debt D Rating in Not Cooperating
ARG DEVELOPERS: CARE Keeps D Debt Ratings in Not Cooperating
BHAGAT JEE: CARE Keeps D Debt Ratings in Not Cooperating
BSC C&C KURALI: CARE Keeps D Debt Rating in Not Cooperating
COX & KINGS: Insolvency Resolution Process Case Summary
D. S. CONTRACTORS: CARE Keeps D Debt Ratings in Not Cooperating
IL&FS ENERGY: CARE Keeps D Debt Ratings in Not Cooperating
INDIA: RBI Not in Favor of Fresh Insolvency Freeze
IRIS HEALTH: CARE Keeps D Debt Ratings in Not Cooperating
K. P. INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating
KEDARESHWAR BUILDERS: CARE Keeps D Debt Rating in Not Cooperating
KREYA INFRATECH: CARE Cuts Rating on INR3.0cr LT Loan to C
LAKSHMI TOBACCOS: CARE Keeps D Debt Rating in Not Cooperating
LAXMI TRADERS: CARE Keeps D Debt Rating in Not Cooperating
MBC AGRO INDUSTRIES: Insolvency Resolution Process Case Summary
MEGHA GRANULES: Insolvency Resolution Process Case Summary
ROHIT JEWELLERS: CARE Keeps D Debt Rating in Not Cooperating
SADARAM JINING: CARE Keeps D Debt Rating in Not Cooperating
SD MILKPRO: CARE Keeps D Debt Rating in Not Cooperating Category
SHREEJI SALES: CARE Keeps D Debt Rating in Not Cooperating
T. R. CHEMICALS: CARE Keeps D Debt Ratings in Not Cooperating
TATA MOTORS: S&P Alters Outlook to Stable, Affirms 'B' ICR
VENTO POWER: CARE Keeps D Debt Ratings in Not Cooperating
VIBHOR VAIBHAV: CARE Keeps D Debt Ratings in Not Cooperating
N E W Z E A L A N D
FFWL: Parent Company of Villa Maria Placed in Receivership
P H I L I P P I N E S
PHILIPPINES: Cuts GDP Growth Outlook Amid Tough Virus Fight
RB OF ALIMODIAN: MB Closes Bank; PDIC to Pay All Deposit Claims
T H A I L A N D
COCA HOLDING: Closes Branch in Siam Square Due to Covid-19 Impact
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A U S T R A L I A
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BAMBRA PRESS: Creditors Accept DOCA, Owner to Take Over Business
----------------------------------------------------------------
Print 21 reports that almost a year to the day after Melbourne
print business Bambra Press went into voluntary administration,
John Wanless will once again take over the business, as it emerges
from its DOCA (deed of company arrangement), following a near
unanimous vote from creditors to accept 20c in the dollar.
Print 21 relates that the company is currently in a variation of
its DOCA, with creditors set to receive a first and final payout on
May 25, after which the company will revert from the administrator
back to Mr. Wanless.
"It's great for the business to get a second chance -- rewarding
the staff who remained focused through the difficult period," the
report quotes Mr. Wanless as saying. "We are operating at about 60
per cent of the sales of two years ago, it is a slimmer
operation."
Administrator Romanis Cant is requesting all claims of debt be sent
to it by May 21, Print 21 says. The estimated amount in the DOCA
fund will be AUD1.75 million. This will be used to pay creditors,
the adminstrators and various other costs. Unsecured creditors will
receive 20c in the dollar.
Mr. Wanless said make good repayments to creditors will not be
limited to what is in the DOCA.
Some rival Melbourne printers though are less than impressed,
claiming they are now having to compete against a company that has
been able shed significant debt through its DOCA, while they have
been paying suppliers and other creditors in full, according to the
report. Mr. Wanless said he has been getting support from the local
industry.
The Bambra that is emerging from the DOCA has slimmed down, with
some 22 staff moving on since last year, leaving it with around 32
employees in its Port Melbourne production centre.
Mr. Wanless has been working in the business since it hit the skids
on May 22 last year. At the time, he said a Covid-related 80 per
cent drop in sales, together with a few significant bad debts, had
left it stranded, and he couldn't see a way back without
restructuring, Print 21 relays. The DOCA was enacted at the end of
August, with the variation coming at the end of March. At the time
he called in the administrators last year, Mr. Wanless said he
believed the company would continue, but in a reduced size, which
is what has happened.
Bambra Press offers offset and digital print, as well as
letterpress, signage, binding and embellishing from its Port
Melbourne premises.
CROWN RESORTS: Rejects Blackstone's US$6.5BB Takeover Bid
---------------------------------------------------------
Angus Whitley at Bloomberg News reports that Crown Resorts Ltd.
rejected as too low an AUD8.4 billion ($6.5 billion) takeover offer
from Blackstone Group Inc., handing the advantage to rival suitor
Star Entertainment Group Ltd.
Directors unanimously decided the U.S. buyout firm's bid
undervalued the company and there was uncertainty about the timing
and regulatory approval for any deal, the Australian casino
operator said May 17, Bloomberg relates. Crown said it discussed
the proposal, which had already been sweetened, with Blackstone,
watchdogs and its own shareholders.
According to Bloomberg, the dismissal of Blackstone -- for the time
being -- puts Crown's smaller competitor Star in the box seat to
cement a union. Star last week proposed an all-stock merger with
Crown that was underpinned by an ambitious plan to cut costs and
generate value from real estate across the enlarged group.
While Crown said May 17 it was yet to form a view on Star's offer,
it said it had asked its rival for more information to "better
understand various preliminary matters," Bloomberg relays.
Crown stock climbed 0.1% to AUD13.05 at 10:38 a.m. in Sydney,
valuing the Melbourne-based company at AUD8.8 billion. Shares of
Star advanced 0.3% to AUD4.07, giving it a market capitalization of
AUD3.9 billion, Bloomberg discloses.
Blackstone's offer was AUD12.35 per share in cash. Star said its
proposal implied a potential value of AUD14.00 per Crown share.
Bloomberg notes that Crown became a takeover target after a
tumultuous few years dating back to 2017, when a Shanghai court
convicted 19 current and former staff of illegally promoting
gambling on the mainland.
Most recently, a regulator in Australia in February said Crown was
unfit to run gaming operations at its new AUD2.2 billion Sydney
resort after facilitating money laundering at its other
properties.
An independent inquiry started public hearings on May 17 into
Crown's suitability to run its flagship Melbourne casino in
Victoria state, according to Bloomberg.
Bloomberg says the rejection of the Blackstone offer clouds the
future for Crown's biggest shareholder, billionaire James Packer.
Mr. Packer has tried at least twice to sell up, and Blackstone's
proposal presented a potential clean exit.
Last month, Oaktree Capital Management LP also offered to help
Crown purchase Mr. Packer's stake.
Headquartered in Melbourne, Australia, Crown Resorts Limited
(ASX:CWN) -- https://www.crownresorts.com.au/ -- wholly owns and
operates two of Australia's leading gambling and entertainment
complexes, Crown Melbourne and Crown Perth.
ESPLANADE BRIGHTON: Second Creditors' Meeting Set for May 24
------------------------------------------------------------
A second meeting of creditors in the proceedings of Esplanade
Brighton Pty Ltd has been set for May 24, 2021, at 10:00 a.m. via
virtual meeting technology.
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 21, 2021, at 4:00 p.m.
Stephen Robert Dixon and Leigh William Dudman of Hamilton Murphy
were appointed as administrators of Esplanade Brighton on Dec. 1,
2020.
GPS CONSTRUCTION: First Creditors' Meeting Set for May 26
---------------------------------------------------------
A first meeting of the creditors in the proceedings of GPS
Construction (Aust) Pty Ltd will be held on May 26, 2021, at 3:00
p.m. via electronic facilities at the offices of Jones Partners,
Insolvency & Restructuring, Level 13, 189 Kent Street, in Sydney,
NSW.
Bruce Gleeson and Daniel Robert Soire of Jones Partners were
appointed as administrators of GPS Construction on May 14, 2021.
HOPKINS EMPIRE: Second Creditors' Meeting Set for May 24
--------------------------------------------------------
A second meeting of creditors in the proceedings of Hopkins Empire
Pty Ltd has been set for May 24, 2021, at 11:30 a.m. via virtual
meeting technology.
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 24, 2021, at 4:00 p.m.
Stephen Robert Dixon and Leigh William Dudman of Hamilton Murphy
were appointed as administrators of Hopkins Empire on March 15,
2021.
HUNTER CAPITAL: Second Creditors' Meeting Set for May 24
--------------------------------------------------------
A second meeting of creditors in the proceedings of Hunter Capital
Investments Pty Ltd, Hunter Capital Investments 2 Pty Ltd and
Hunter Capital Investments 3 Pty Ltd, has been set for May 24,
2021, at 4:00 p.m., 2:30 p.m., and 1:00 p.m. virtual meeting
technology.
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 21, 2021, at 4:00 p.m.
Stephen Robert Dixon and Leigh William Dudman of Hamilton Murphy
were appointed as administrators of Hunter Capital Investments on
Dec. 1, 2020.
LANEWAY GREENS: First Creditors' Meeting Set for May 26
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Laneway
Greens Pty Ltd will be held on May 26, 2021, at 11:00 a.m. virtual
meeting technology.
Michael Carrafa and Fabian Kane Micheletto of SV Partners were
appointed as administrators of Laneway Greens on May 14, 2021.
LASH HOPKINS: Second Creditors' Meeting Set for May 24
------------------------------------------------------
A second meeting of creditors in the proceedings of Lash Hopkins
Investments Pty Ltd has been set for May 24, 2021, at 9:00 a.m. via
virtual meeting technology.
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 21, 2021, at 4:00 p.m.
Stephen Robert Dixon and Leigh William Dudman of Hamilton Murphy
were appointed as administrators of Lash Hopkins on Dec. 1, 2020.
NOLD TRADING: Second Creditors' Meeting Set for May 21
------------------------------------------------------
A second meeting of creditors in the proceedings of Nold Trading
Pty Ltd has been set for May 21, 2021, at 9:30 a.m. via
teleconference only.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 20, 2021, at 5:00 p.m.
Andrew Blundell of Worrells Solvency & Forensic Accountants was
appointed as administrator of Nold Trading on April 16, 2021.
NORTH QUEENSLAND EXPORT TERMINAL: S&P Affirms 'BB-' ICR
-------------------------------------------------------
On May 17, 2021, S&P Global Ratings affirmed its issue credit
rating on The North Queensland Export Terminal Pty Ltd. (NQXT) at
'BB-'.
The negative outlook continues to reflect uncertainty as to the
nature and timing of future refinancing plans, borrowing costs, as
well as challenges with ongoing contractual disputes.
Abbot Point Coal Terminal, located 25 kilometers northwest of Bowen
in the Australian state of Queensland, is Australia's northernmost
coal port. The multiuser port has a design capacity of 50 million
tons per annum that is substantially contracted under
medium-to-long-term take-or-pay agreements. The port is held under
a 99-year lease acquired by the Adani Group from the Queensland
government early in 2011.
The port was renamed North Queensland Export Terminal (NQXT) from
Adani Abbot Point Terminal in October 2020. The port has also
incorporated a new entity, NQXT Capital Pty Ltd., which will be the
pass-through special-purpose financing vehicle for the project for
future refinancing.
-- Relatively stable revenue under take-or-pay contracts and
socialization arrangement at the time of resets.
-- Good contracted capacity pipeline from multiple shippers.
-- Exposure to refinancing risk given increasing reluctance of
capital providers to finance coal-related assets.
-- Some headline environmental, social, and governance (ESG) risk
given linkages to the Carmichael Mine as one of the users.
-- Periodic exposure to contract renewals.
-- Revision of tariffs at next reset in June 2022.
S&P has revised the liquidity assessment for NQXT to adequate from
less than adequate on receipt of funds from the Adani Group into
the accounts of NQXT. On May 6, 2021, the project received funds to
meet the upcoming maturity of US$140 million due on Sept. 22,
2021.
Although near-term liquidity risks have dissipated, we believe
refinancing risks and borrowing costs associated with the project
remain high. This is evidenced by the project's inability to
refinance multiple maturities through 2020 and 2021 and instead
having to turn to is ultimate parent to provide shareholder loans
and A$100 million in equity funding. Consequently, the credit
margin for refinancing remains uncertain.
This remains a risk given the substantial upcoming maturity of
US$500 million due in December 2022. S&P believes the project will
continue to bear risks associated with increased borrowing costs,
as the current tariff mechanism doesn't pass this through to users.
Delayed refinancing for subsequent maturities may put further
downward pressure on the ratings. If the December 2022 bonds are
not refinanced 12 months before maturity, the liquidity assessment
will weaken.
S&P believes widening of credit margins could remain a persistent
feature for future refinancing, owing to ESG-related considerations
over coal assets in general as well as this project itself. Timely
completion of the next tariff reset, including arbitrations if any,
as well as a resolution of handling charges disputes with some
shippers and the conclusion of the ongoing renewal of the Glencore
contract would be relevant credit factors in the next term.
The negative outlook reflects NQXT's high level of refinancing risk
and exposure to increases in borrowing costs. In 2020 and to date
in 2021, NQXT has been unable to refinance its debt maturities in
the market and instead has relied on funds from the Adani Group.
The negative outlook captures the uncertainty of the refinancing of
its US$500 million bond maturing in December 2022, which represents
50% of its debt outstanding. In addition, NQXT faces challenges
with ongoing contractual disputes with some shippers.
S&P said, "We may lower the rating if there is increased
uncertainty around the 2022 refinancing. We could also lower the
rating if our calculated minimum debt service coverage ratio (DSCR)
was to drop below 1.4x, which could most likely happen if there is
a further increase in borrowing costs (even by 1%) beyond that
factored into our base case. Further, uncertainty around the timing
of resolution of handling charges, contract renewals, or any other
operational challenges can also weigh on the rating.
"We could revise the outlook to stable if there is greater
certainty over the long-term debt profile, refinancing prospects,
cost of debt, and clarity around the aforementioned challenges
related to contractual disputes. A precursor to a revision in the
outlook would also include DSCRs remaining above 1.4x in our base
case and 1x in our downside case assessment."
Performance Update
In the last 12 months, NQXT has tied up 1.5 mtpa in long-term
contracts with one shipper.
Management has indicated that the Carmichael mine is on track and
the short-term contract with NQXT will commence from August 2021
onward.
Operations phase SACP (Senior Debt)
-- Operations phase business assessment: 5 (1=best 12=worst)
-- Preliminary SACP: bbb-
-- Downside impact on preliminary SACP: bbb (no impact)
-- Project Asset Coverage: Negative (-2 notch)
-- Liquidity: Adequate (no impact)
-- Comparative analysis assessment: Negative (-1 notch)
-- Adjusted preliminary operations phase SACP: bb-
-- Operations counterparty ratings adjustment: N/A
-- Financial counterparty ratings adjustment: N/A
-- Operations phase SACP: bb-
Modifiers (Senior Debt)
-- Parent linkage: Delinked
-- Structural protection: Neutral (no impact)
-- Senior debt issue rating: BB-
Liquidity
NQXT's available liquidity to refinance the US$140 million debt
maturity due in September 2021 is now greater than 1x over the next
12 months, indicating adequate liquidity.
VOYAGE AUSTRALIA: S&P Assigns Prelim. 'BB-' Issuer Credit Rating
----------------------------------------------------------------
On May 17, 2021, S&P Global Ratings assigned its preliminary 'BB-'
long-term issuer credit rating to Voyage Australia Pty Ltd.
(Voyage). S&P also assigned its preliminary 'BB-' long-term issue
rating to the proposed term loan B (TLB) facilities issued by the
company.
The bid for Vocus via Voyage is a 50% joint venture between MIRA
and Aware.
S&P said, "Our preliminary rating assumes that the transaction will
complete in its current form. Should shareholders approve the
scheme of arrangement, the implementation date is expected to be in
mid-to-late July 2021. We refer to Voyage and Vocus interchangeably
for the purposes of our forward-looking analysis.
"We view the Vocus Network Services (VNS) division as core to the
group's growth prospects.
"Driven by increasing data and bandwidth consumption, connectivity,
and security, we assess that the VNS division delivers the highest
margins amongst the group (about 36%) compared with both the retail
(about 11%) and New Zealand (about 19%) divisions. In our view, VNS
is well-positioned to grow its market share through value-added
adjacent services including public cloud, cybersecurity, and
collaboration services."
Vocus is Australia's fourth-largest telecommunications provider.
That said, S&P views Vocus as materially smaller in scale compared
to major industry peers: Telstra Corp. Ltd. (A-/Stable/A-2);
Singtel Optus Pty Ltd. (A-/Negative/A-2); and TPG Telecom Ltd.
(unrated). Unlike its major competitors, Vocus is not a mobile
network operator, which it believes presents both opportunities and
challenges as the Australian telecommunications landscape evolves.
Vocus' quality network infrastructure is complemented by NBN Co.'s
decision to make available its last-mile wholesale access network
to enterprise resellers.
This somewhat offsets the scale disadvantages and capital intensity
of deploying fiber infrastructure. Although margins are likely to
be modest, it should allow smaller-scale operators to more
effectively compete in the enterprise market, which Telstra has
traditionally dominated. Moreover, S&P believes Vocus can enhance
its margins by providing value-added adjacent services and
leveraging its existing infrastructure assets.
Vocus' enterprise business benefits from a good degree of revenue
and earnings visibility.
Stable churn levels and recurring contracted revenues typically
ranging between two and five years provide good earnings
visibility. Nevertheless, S&P views the enterprise business as
competitive with potentially lumpy contract exposures. In addition,
the undifferentiated nature of certain wholesale fiber services
requires the group to offer value-added customer solutions to
support its overall profitability.
In S&P's view, VNS' exposure to sticky enterprise and government
contracts underpins its competitive advantage.
The largest of the group's enterprise and government clients (about
46% of VNS revenues) are government agencies, followed by clients
across the resources sector, communications, banking,
manufacturing, and healthcare, with no single client contract
contributing to more than 5% of group revenues. S&P views
government contracts as more sticky given security clearances,
approvals, and minimum performance standards. In addition, S&P
believes the group's exposure to more volatile resource end-markets
is prudently managed. The company's wholesale and international
(W&I, about 50% of VNS revenues) clientele includes internet
service providers, managed service providers, and domestic and
international carriers.
The company operates a sizable intercapital, metro, and regional
fiber network.
S&P said, "We view this infrastructure as providing stable returns,
albeit with margins that reflect a degree of infrastructure
competition and undifferentiated service offering. Moreover, we
believe NBN Co.'s recent indication that it might overbuild instead
of sourcing dark fiber from private operators could place some
incremental pressure on margins, should it occur." The company has
two subsea cables (totaling 6,720 kilometers): ASC, which connects
Australia, Singapore, and Indonesia; and NWCS, between Port Hedland
and Darwin, which links offshore oil and gas facilities in the
Timor Sea. The company has a track record of large infrastructure
contracts related to high-capacity, subsea cables for regions that
rely on remote connectivity and communication.
Management has made steady progress in simplifying its legacy cost
structure and operational complexity of various business systems.
This includes the consolidation of networks, business support
systems, billing systems, and enhancing service efficiency through
digitization. That said, S&P believes further improvements are to
be made over the next two to three years with cost-savings
associated with digital enablement, network rationalization, and
the company's continued Future State network site rollouts and
migrations.
The company's smaller scale, modest market share, and low-margin
retail division weigh on its business risk.
Vocus faces pressure from larger and better-capitalized competitors
with formidable fixed and mobile network infrastructure, affording
them the ability to offer a broader array of products and services.
In addition, we believe that large scale competitors have the
balance sheet capacity to lower prices in response to competitive
threats. S&P said, "That said, we note that industry peers are
heavily focused on building out their 5G mobile product offerings,
while Vocus remains focused on growing its wholesale, enterprise,
and government network services business. We believe Vocus' smaller
scale is somewhat offset by a greater degree of agility, as
evidenced by an outsized share of recent enterprise contract
wins."
Vocus' retail segment is exposed to intense competition, adverse
NBN reseller charges, as well as secular declines associated with
legacy, fixed voice revenues.
S&P said, "Vocus' retail business is likely to remain a relatively
low-margin business (about 11%). However, we believe Vocus' retail
division enables value-added opportunities for the broader group.
Further, management has focused on stabilizing the division's
revenue decline and has implemented cost reduction initiatives. In
our opinion, Vocus is likely to undertake a strategic review of the
retail segment at some stage following completion.
"Further, we view industry consolidation amongst Vocus' customer
base remains somewhat of an earnings risk."
Larger players that acquire smaller operators (such as NBN
resellers) could affect Vocus' existing contracts, cash flows, and
network utilization rates if customers consolidate their network
requirements or shift data traffic to alternative networks. That
said, S&P believes a substantial part of the consolidation has
already occurred and Vocus can manage this risk appropriately with
renewals in the enterprise and government market.
Vocus is seeking to issue a A$1.85 billion first-lien TLB facility
and a A$150 million delayed draw TLB facility over the coming
months.
The company also has a A$150 million senior secured revolving
credit facility that will rank pari passu with the proposed TLB
facilities. Any foreign currency amounts, such as U.S. dollars or
euros, raised under the TLB facility will be issued by Vocus and
swapped into Australian dollars. The issue rating is based on the
proposed terms and conditions of the facilities.
S&P views MIRA and Aware as strategic owners with long-term
investment horizons and a patient approach to capital.
Macquarie Infrastructure and Real Assets and its managed funds
(MIRA) and Aware Super Pty Ltd. as a trustee of Aware have entered
into a scheme implementation deed with the Vocus group to acquire
100% of the share capital of Vocus for a purchase consideration of
A$4.6 billion, with a combined equity contribution of A$2.75
billion. S&P does not anticipate either owner will pursue
shareholder returns until a greater degree of scale and market
position is attained.
S&P believes the company has a credible deleveraging strategy over
the next two to three years.
S&P said, "We expect Vocus' S&P Global Ratings adjusted
debt-to-EBITDA to start at about 5.0x at transaction close, before
deleveraging below 5.0x during fiscal 2022 and beyond. We
anticipate the company will reduce leverage primarily through
EBITDA growth via improving gross margins in its VNS business and
decreasing operating costs through the implementation of its Future
State cost-out initiatives.
"Further, we forecast the company will generate positive free
operating cash flows that it will likely reinvest into its core VNS
business.
"We expect the company's capital expenditure (capex) to remain at
about 11% of revenues with investment in enterprise network
capabilities. That said, noting the owner's growth aspirations, it
is possible that limited amounts of free operating cash flow could
be generated. Under a scenario where growth capex is higher than
base case expectations, we would still expect a deleveraging path,
albeit one biased toward earnings growth rather than reductions in
absolute debt. Either way, we do not anticipate material negative
free operating cash flow for any prolonged period."
Vocus' large infrastructure projects could result in lumpy cash
generation.
This could add to some cash flow volatility depending on the
pattern of contract wins. S&P notes that the company has meaningful
deferred revenue balances as a result of the upfront receipts from
fiber payments that are capitalized, and expensed when
infrastructure is deployed.
S&P said, "The stable outlook reflects our expectation that the
transaction will complete in its current form and that the company
will increase its market position in the enterprise network
services industry while limiting pressure on its balance sheet. We
expect Vocus' S&P Global Ratings adjusted debt-to-EBITDA ratio to
deleverage and sustain below 5.0x during fiscal 2022 and beyond.
"We could lower the rating if we expect Vocus to sustain debt to
EBITDA above 5.0x either as a result of debt-funded growth or
weaker than expected earnings.
"We consider an upward rating action as unlikely in the near term.
However, we may raise the rating if we believe the group can
sustain its debt to EBITDA less than 4.0x and we consider its
shareholders' financial policies supportive of an improved
financial risk profile."
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BAOJI INVESTMENT: Fitch Lowers LT IDRs to 'BB+', Outlook Stable
---------------------------------------------------------------
Fitch Ratings has downgraded Baoji Investment (Group) Co., Ltd.'s
(BIG) Long-Term Foreign- and Local-Currency Issuer Default Ratings
(IDR) to 'BB+' from 'BBB-'. The Outlook is Stable. Fitch has also
downgraded the rating on BIG's USD80 million 7.0% senior unsecured
notes due December 2021 to 'BB+' from 'BBB-'. The company's
Standalone Credit Profile (SCP) is unchanged at 'b'.
The downgrade reflects Fitch's revised assessment of the financial
implications of default to 'Strong', from 'Very Strong', under
Fitch's Government-Related Entities (GRE) Rating Criteria, leading
to a lower GRE score of 30.
BIG, established in 2006, serves as a functional GRE in China's
Baoji municipality. BIG has a wide business scope, including
infrastructure development, affordable housing construction, public
transportation, water and heating supply, and sewage treatment. It
had total assets of CNY54.6 billion at end-March 2021.
KEY RATING DRIVERS
'Strong' Financial Implications of Default: Fitch lowered its
assessment of the financial implications of a BIG default, as the
company's debt has decreased as proportion of the municipal
government's overall risk. This follows a 25% drop in BIG's debt in
2020 compared with 2018. The reassessment also takes into account
BIG's external guarantee to POE of CNY1.2 billion as at end-2020
and expanding commercialised business, which dwarfs its functional
public-service role.
Fitch continues to believe a financial failure at BIG would have
'Strong' implications for other GREs' funding, as the company
remains the largest GRE in Baoji in terms of asset size and is also
an active bond issuer in the city. A default at BIG would push up
the funding costs of other GREs in the region, impair their funding
access and have a reputational impact on the municipal government.
'Very Strong' Status, Ownership and Control: BIG is registered as a
state-owned limited liability company under Chinese company law.
Fitch's assessment of 'Very Strong' mainly considers the
government's tight control and oversight over BIG's operations and
financing. The municipal government appoints most of BIG's board
members, approves major projects and closely monitors the company's
financing plans and debt levels. The company is also required to
regularly report its operational and financial results to the
government.
'Strong' Support Record: BIG received around CNY2.6 billion in
subsidies over 2016-2020, accounting for around 69% of
Fitch-adjusted EBITDA. This support facilitates BIG's public
services, including public transportation, social housing and
underground pipeline construction. The company also received other
means of financial support, including capital injections and debt
swaps, to enhance its financial flexibility.
'Moderate' Socio-Political Implications of Default: BIG is a
flagship GRE in Baoji due to its functional businesses, including
urban development, heating and water supply, and sewage treatment.
However, BIG operates mainly under government concessions, which
means other GREs can replace it if it defaults with only temporary
disruptions to services in extreme cases. In addition, most of
BIG's functional businesses are provided through subsidiaries,
which would limit the impact on the city should BIG default.
SCP of 'b': BIG's SCP is derived from its 'Weaker' revenue
defensibility and 'Midrange' operating risk, as well as its
'Weaker' financial profile. Its revenue defensibility assessment is
constrained mainly by its high geographical concentration and the
limited pricing flexibility of its utility businesses, such as
heating and water supply, and public transportation services. BIG's
operating risk mainly reflects its strong market position in Baoji
and its satisfactory funding access.
Its 'Weaker' financial profile assessment is due to its high
leverage, which was around 20.0x at end-2020. Fitch projects
leverage will rise to around 25.0x by 2025, considering its
debt-funded capex and the profitability constraints of its
functional businesses. In addition, the company provided CNY6.3
billion in external guarantees by end-2020 to other smaller local
GREs that rely on government support and land sales. Fitch believes
this could increase BIG's financial risk in light of the volatility
and limited visibility of the local land market.
DERIVATION SUMMARY
BIG's ratings are assessed under Fitch's Government-Related
Entities Rating Criteria, with a total GRE score of 30. The
assessment has factored in the municipality's 100% ownership,
direct control and support for the company. Fitch has also
considered the strategic importance of BIG's public-sector business
to the municipality. The local government therefore has the
incentive to support the company because a BIG default could have
social and financial implications for the municipality.
The ratings of BIG also take into consideration the SCP, which is
assessed at 'b' under the Public Sector, Revenue-Supported Entities
Rating Criteria.
RATING SENSITIVITIES
Factor that could, individually or collectively, lead to positive
rating action/upgrade:
-- An upgrade may be triggered by a firmer internal assessment of
the creditworthiness of Baoji municipality or the incentive to
provide support, including stronger socio-political and
financial implications of default, and support record.
Factor that could, individually or collectively, lead to negative
rating action/downgrade:
-- The rating may be downgraded upon a significant weakening in
the socio-political and financial implications of default, a
weaker support record or a dilution of the government's
shareholding. A downgrade may also stem from weaker municipal
fiscal performance or increased debt, leading to deterioration
in the sponsor's creditworthiness.
Rating action on BIG would lead to similar action on its US dollar
notes.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Sovereigns, Public Finance
and Infrastructure 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 three 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.
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 EAGLE: Fitch Raises LT IDR to 'BB+', Outlook Stable
----------------------------------------------------------
Fitch Ratings has upgraded China-based department store operator
Golden Eagle Retail Group Limited's Long-Term Issuer Default Rating
(IDR) and senior unsecured rating to 'BB+', from 'BB'. The Outlook
is Stable.
The upgrade is driven by Golden Eagle's ability to maintain a
strong financial profile amid the coronavirus pandemic, with higher
revenue and EBITDA reported for 2020 despite significant disruption
to business operations in 1H20. The company's sustained positive
free cash flow (FCF) generation demonstrates its resilience against
the challenging retail environment and provides sufficient rating
headroom. Fitch expects Golden Eagle to maintain its payable
adjusted FFO net leverage at below 3x with a stable retail
operating performance and controlled property development.
The ratings are constrained by the company's small scale and
geographic concentration, with the bulk of revenue generated from
the Yangtze River delta area.
KEY RATING DRIVERS
Recovery From Pandemic: Golden Eagle had a speedy recovery from the
effects of the pandemic, with revenue rising by 15% yoy in 2H20;
strong direct sales compensated for lower concessionaire sales. The
robust performance was underpinned by continuous efforts to adjust
merchandise, integrate online and offline operations and cut costs.
Fitch believes a broadening of its revenue streams, with an
increased contribution from direct sales, will add to the
resilience of the company's credit profile.
Strong Profitability: Fitch expects a stable EBITDA margin of
42%-43% in 2021-2024, after increasing to 44% in 2020, from 43% in
2019, due to a flexible cost structure and a one-off reduction to
the staff retirement benefits scheme. Some cost savings should be
sustainable as the company further streamlines its operation.
However, Fitch expects increasing investment in talent recruitment,
warehouse and logistics in the core retail operation.
Sustained Positive FCF: Fitch expects positive FCF over the next
few years, supported by a stable retail operation and limited
retail capex, with higher capex being mainly for property
development. Fitch's base case assumes that property-related capex
can be fully covered by inflow from property sales and that the
company will not significantly increase its commercial property
exposure. Fitch forecasts higher property cash inflow as the
company's Yangzhou and Jilin projects start presales.
Fitch believes the company's strategy to cooperate with business
partners on some planned retail projects under an asset-light model
will reduce capex and provide a recurring source of revenue, but
the contribution will be limited at the initial stage.
Online to Supplement Offline: Fitch expects Golden Eagle to utilise
its online platform to offer a better shopping experience and
services to its VIP customers and to acquire new customers. Its
mobile app, Jingying.com, registered sales growth of 72% in 2020
and a large boost in daily traffic.
More resources will be put into the e-commerce platform to convert
the higher traffic into sales to drive revenue growth; Golden Eagle
plans to improve its online merchandise offerings with the launch
of more than 100 flagship brands on its app in 2021 and to enhance
the user experience. Fitch expects a steady increase in the online
contribution, but it is likely to account for a small proportion of
total revenue in the near term.
Broadened Revenue Streams: Golden Eagle is continuing to invest in
new store formats to increase lifestyle offerings and better meet
customer demand. The lifestyle element increasingly contributes to
total revenue, with direct sales and rental income accounting for
64% of total revenue in 2020, up from 47% in 2015. Gross sales
proceeds from its supermarket and 7-Eleven convenience stores rose
by 46% and 62% yoy, respectively, in 2020. A wider merchandise
selection has helped the company stay relevant and maintain its
market position within the competitive retail industry.
DERIVATION SUMMARY
Most non-food retailers under Fitch's coverage are based in the
U.S.; Fitch downgraded the U.S. department stores following
significant business interruption from the pandemic and the
implications of a downturn in discretionary spending, which Fitch
expects to extend well into 2021. In comparison, China's retail
environment has recovered faster and Fitch expects it to generate
more stable cash flow.
Golden Eagle has a weaker market position and significantly smaller
scale than Macy's Inc. (BB/Negative), but benefits from more
favourable consumer demand amid an early recovery from the
pandemic. It has also been more resilient after adding more
relevant retail formats over the last few years. Golden Eagle has a
stronger financial profile than Macy's, with sustained positive
FCF, lower leverage and more stable revenue and EBITDA.
Golden Eagle and Dillard's, Inc. (BB/Negative) are both regionally
concentrated, with similar EBITDAR scale. Golden Eagle has stronger
profitability and a more resilient performance over the past few
years. Dillard historically had lower leverage, but leverage
increased following a sharp drop in EBITDA amid the pandemic. The
stronger financial profile and more favourable growth potential of
Golden Eagle justify the one-notch rating difference between the
two companies.
No Country Ceiling, parent/subsidiary or operating environment
aspects affect the rating.
KEY ASSUMPTIONS
-- Gross sales proceeds to increase by a high-single-digit in
2021, with an increase in both direct and concessionaire sales
(2020: -7%, excluding property sales);
-- EBITDA margin/operating revenue of 42% in 2021, excluding the
contribution from property development (2020: 44%), remaining
stable thereafter;
-- Capex of CNY1.3 billion, including capex for projects under
development, in 2021, increasing to CNY2.6 billion in 2022
2024 due to higher property-related capex (2020: CNY380
million, not including capex for projects under development;
-- 55% annual dividend payout rate (2020: 50%).
RATING SENSITIVITIES
Factor that could, individually or collectively, lead to positive
rating action/upgrade:
-- Fitch does not expect positive rating action in the medium
term until Golden Eagle achieves a substantially larger
operating scale and improves its revenue diversification.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Payables adjusted FFO net leverage (adjusted for lease,
payables and customer deposits) sustained above 3.0x
(2020:2.6x);
-- Sustained negative free cash flow.
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
Strong Liquidity: Golden Eagle had reported cash and cash
equivalents of CNY6.7 billion at end-2020, against short-term debt
obligations of CNY3.8 billion. The company refinanced the whole
amount of its syndicated loans in April 2021, which further
strengthened its liquidity profile, with all its debt now long term
in nature. In addition, Golden Eagle had unutilised banking
facilities of CNY16 billion at end-2020.
SUMMARY OF FINANCIAL ADJUSTMENTS
-- Leases: Fitch has adjusted debt by adding an 8x annual fixed
operating lease expense (2020: fixed rental expense of CNY20
million).
-- Payables-Adjusted Net Leverage: Fitch subtracts customer
prepayments and 85% of trade payables from readily available
cash. This metric applies mainly to Chinese department stores
operating under the concessionaire model.
-- Operating EBITDA: Fitch treats the sale of properties and cost
of properties sold as non-operating items and cash flow from
the sale of properties as non-operating cash flow.
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.
REDSUN PROPERTIES: Fitch Puts B+ Rating to Proposed USD Sr. Notes
-----------------------------------------------------------------
Fitch Ratings has assigned China-based Redsun Properties Group
Limited's (B+/Stable) proposed US dollar senior notes a rating of
'B+' and a Recovery Rating of 'RR4'.
The notes are rated at the same level as Redsun's senior unsecured
rating as they constitute its direct and senior unsecured
obligations. Redsun plans to use the proceeds to refinance existing
debt.
Redsun is a subsidiary of Hong Yang Group Company Limited
(B+/Stable). Fitch rates both companies on a consolidated basis,
according to its Parent and Subsidiary Linkage Rating Criteria, as
Redsun represents the group's entire exposure to the China
homebuilding business.
The group's ratings reflect its expanded contracted-sales scale,
supported by improved land-bank diversification and a prudent
financial policy, which has kept leverage at around 40%, a healthy
level among 'B+' rated peers. The ratings are constrained by an
attributable sales scale that is smaller than that of 'BB-' rated
peers and the pressure to build up land bank to pursue sustained
sales growth.
KEY RATING DRIVERS
Sales Continue to Rise: The group's total contracted sales rose 33%
to CNY86.5 billion in 2020, driven by its sufficient saleable
resources, mainly in Jiangsu province and other cities in the
Yangtze River Delta, where demand remains strong. The group targets
to grow its total contracted sales by about 15% to CNY100 billion
in 2021.
Moderate Leverage: Fitch expects the group's leverage, measured by
net debt/adjusted inventory (including guarantees to joint ventures
and associates) to be at around 40% in 2021, similar to the 2020
level (38%), which is reasonable compared with 'B+' rated peers.
Diversified Land Bank: The group had a total land bank of 20
million square metres at end 2020, sufficient for about three years
of development. The group further diversified its land bank by
reducing the proportion held in Jiangsu province, where it is
based, to around 53% in 2020, from 58% in 2019, widening its
exposure to over 40 cities.
Stable EBITDA Margin: The group's EBITDA margin, after adding back
capitalised interest in cost of goods sold, slightly dropped to 21%
in 2020, from 22% in 2019. The group will continue to face
competition as it expands outside Jiangsu, but Fitch expects its
selling and administrative expense/revenue ratio to drop as revenue
recognition increases and this will support the EBITDA margin.
DERIVATION SUMMARY
The group's business and financial profile is similar to that of
'B+' rated peers, such as Helenbergh China Holdings Limited
(B+/Stable), Hong Kong JunFa Property Company Limited (B+/Stable)
and Fantasia Holdings Group Co., Limited (B+/Stable). The group's
attributable contracted-sales scale of about CNY43 billion in 2020
was smaller than 'BB-' peers' scale of more than CNY50 billion.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Total contracted sales by gross floor area increasing by 5%
per year in 2021-2023;
-- Contracted average selling price rising by 3% per year in
2021-2023;
-- Property development gross profit margin (after adding back
capitalised interest) of about 30% in 2021-2023;
-- Land-acquisition cash outflow to account for 50% of pre-sales
proceeds in 2021-2023.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Scale expands to a level that is comparable with that of 'BB-'
peers;
-- Leverage, measured by net debt/adjusted inventory that
proportionately consolidates joint ventures and associates,
sustained below 40%;
-- Available cash/short-term debt sustained above 0.8x.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- EBITDA margin, excluding capitalised interest from cost of
goods sold, sustained below 20%;
-- Leverage, measured by net debt/adjusted inventory that
proportionately consolidates joint ventures and associates,
sustained above 50%.
The above ratios are based on the parent's - Hong Yang -
consolidated financial data.
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
Sufficient Liquidity: At end-2020, Redsun had available cash
balance of CNY12.4 billion, excluding restricted cash and pledged
deposits of CNY2.9 billion and CNY3.3 billion, respectively,
sufficient to cover its short-term borrowings of CNY11.4 billion.
In January 2021, Redsun issued USD350 million of 7.30% senior notes
due 2025 for refinancing.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
=========
I N D I A
=========
AGRI VENTURE: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Agri
Venture (AV) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 5.95 CARE D; ISSUER NOT COOPERATING
Short Term Rating continues to remain
Bank Facilities under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 5, 2020 placed the
ratings of AV under the 'issuer non-cooperating' category as AV had
failed to provide information for monitoring of the ratings as
agreed to in its Rating Agreement. AV continues to be
non-cooperative despite repeated requests for submission of
information through phone calls and emails dated March 21, 2021,
March 31, 2021, April 5, 2021, April 10, 2021 and April 22, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
ratings on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
At the time of last rating done on May 5, 2020 the following was
the rating weakness.
Key rating weaknesses
* Delay in debt servicing: AV was irregular in servicing its debt
obligation due to its weak liquidity position.
Rajkot-based (Gujarat), Agri Venture was incorporated in 2014. Agri
Venture is merchant exporter of Agri commodities such as Sesame
Seeds, Turmeric Finger, Groundnut and Cumin seeds. Mr. Chirag
Mahesh Sangani, proprietor, aged 38 years who has an experience of
more than thirteen years, manages the overall operations of the
company. They majorly export to countries like Vietnam, Greece,
Turkey, Israel and Egypt.
AIR INDIA: Cairn Energy Sue Over US$1.2BB Arbitration Award
-----------------------------------------------------------
Reuters reports that Cairn Energy has sued India's flagship carrier
Air India to enforce a $1.2 billion arbitration award that it won
in a tax dispute against India, according to a U.S. District Court
filing reviewed by Reuters.
Reuters relates that the move ratchets up pressure on India's
government to pay the sum of $1.2 billion plus interest and costs
that the British firm Cairn was awarded by an arbitration tribunal
in December. The body ruled India breached an investment treaty
with Britain and said New Delhi was liable to pay.
According to Reuters, Cairn filed the lawsuit on May 14 in the U.S.
District Court for the Southern District of New York, seeking to
make Air India liable for the judgment that was awarded to Cairn.
The lawsuit argued that the carrier as a state-owned company, is
"legally indistinct from the state itself".
"The nominal distinction between India and Air India is illusory
and serves only to aid India in improperly shielding its assets
from creditors like (Cairn)," the filing said.
Air India did not immediately respond to requests seeking comment.
However, a senior government official, who asked not to be named,
said the government and Air India had not received any formal
notice of such a suit.
"As and when any such notice is received. The government or
concerned organisation shall take all necessary steps to defend
against any such illegal enforcement action," the official, as
cited by Bloomberg, said, adding that New Delhi has engaged a team
ready to defend against any enforcement action initiated by Cairn
anywhere in the world.
Bloomberg says Cairn's move could potentially jeopardise India's
attempts to divest the state-owned carrier this year. New Delhi
said in December that it had received multiple expressions of
interest after it moved to privatise the loss-making entity.
Bloomberg relates that the senior government official noted New
Delhi has filed an appeal against the arbitration award, and added
"the government is confident that the award will be set aside".
Cairn had since January, however, begun taking steps to identify
Indian assets overseas against which it could enforce the award
including bank accounts, aircraft and even ships. It had also
started registering its claim against India in courts in the United
States, Great Britain, Netherlands and Canada.
Reuters last week reported that India had asked state-run banks to
withdraw funds from their foreign currency accounts abroad, fearing
Cairn might sue to seize the funds.
Cairn had said previously it was pursuing a settlement with India,
but in the interim it has also been laying the grounds to seize
Indian assets should talks fail, Reuters relays.
Commenting on the suit, a company spokesman on May 15 said that
Cairn was taking the necessary legal steps to protect shareholder
interests in the absence of a resolution.
He said that "Cairn remains open to continuing constructive
dialogue with the Government of India" to reach a settlement.
An Indian official told Reuters last week, talks between New Delhi
and the company were making "little progress" and noted that
India's directive to state-run banks to withdraw foreign currency
funds sitting overseas showed the government is worried that Cairn
may move quickly to seize assets.
It is unclear whether the suit against Air India could serve as a
means for Cairn to seize Air India aircraft that land on U.S. soil,
Reuters adds.
Air India Ltd -- http://www.airindia.com/-- is the flag carrier
airline of India owned by Air India Limited (AIL), a Government of
India enterprise. The airline operates a fleet of Airbus and Boeing
aircraft serving various domestic and international airports. It
is headquartered at the Indian Airlines House in New Delhi.
ANNAPOORNA ENTERPRISES: CARE Keeps Debt D Rating in Not Cooperating
-------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sri
Annapoorna Enterprises (SAE) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated April 23, 2020, placed the
rating(s) of SAE under the 'issuer non-cooperating' category as SAE
had failed to provide information for monitoring of the rating. SAE
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and an email
dated May 2020 to April 16, 2021. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
At the time of last rating on April 23, 2020 the following were the
rating strengths and weaknesses.
Key Rating Weakness
* Delay in debt Servicing: SAE has been facing liquidity issues due
to which the firm is unable to service the debt obligation. The
banker has confirmed that the account has been classified as NPA.
Andhra Pradesh based, Sri Annaporna Enterprises was established in
the year 2014 as a partnership firm by Mr. Hari Babu & Mrs.
Jayasree. The company is engaged in the trading of tobacco. The
company purchases tobacco from local farmers and traders, and sells
the same to its clients located across Andhra Pradesh.
ARG DEVELOPERS: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of ARG
Developers Private Limited (ADPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 49.37 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated February 27, 2020, continued
to classify the rating of ADPL under the 'Issuer non-cooperating'
category as ADPL had failed to provide information for monitoring
of the rating. ADPL continues to be non-cooperative despite
repeated requests for submission of information through phone calls
and emails dated April 20, 2021, April 22, 2021, April 23, 2021. In
line with the extant SEBI guidelines, CARE has reviewed the rating
on the basis of the best available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
At the time of last rating on February 27, 2020, the following were
the rating strengths and weaknesses (updated for the information
available from MCA's website).
Key Rating Weaknesses
* Delays in debt servicing: There were delays in debt servicing by
the company at the time of last rating. Further, as per audit
report for FY20, there were delays in debt servicing by the company
and account has been classified as Non-performing Asset (NPA).
ARG Developers Private Limited (ADPL) was initially incorporated in
2007 with the name of ARG Developer Private Limited. Later on, in
the year 2008, the name of the company was converted and assumed
its current name ADPL. ADPL is a flagship company of ARG Group,
incorporated with the objective to work on the real estate
projects. The company has executed some projects which include 3
residential and 3 commercial projects at Jaipur and Gwalior. At
present, ADPL is working on ultra-luxury residential project 'ARG
ONE' with total saleable area of around 2.54 lakh square feet (lsf)
having 62 flats.
BHAGAT JEE: CARE Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Bhagat Jee
Steels Private Limited (BJSPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 16.15 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.57 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from BJSPL to monitor the rating
vide e-mail communications/letters dated April 5, 2021, April 12,
2021, April 14, 2021 and numerous phone calls. However, despite
repeated requests, the company has not provided the requisite
information for monitoring the ratings. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
publicly available information which however, in CARE's opinion is
not sufficient to arrive at a fair rating. Further, BJSPL has not
paid the surveillance fees for the rating exercise as agreed to in
its Rating Agreement. The rating on BJSPL's bank facilities will
now be denoted as CARE D; ISSUER NOT COOPERATING. Further due
diligence with the banker could not be conducted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
At the time of last rating in Feb. 7, 2020 the following were the
rating strengths and weaknesses (updated the information available
from Ministry of Corporate Affairs).
Key Rating Weaknesses
* Delay in debt servicing: There are instances of delays in debt
servicing of the company.
Bhagat Jee Steels Private Limited (BJSPL) was incorporated on June
14, 2000, promoted by Mr. Rakesh Kumar Agarwal and his family
members. Since its inception, BSPL has been engaged in
manufacturing of MS ingots, angles, flats, channels, rounds,
squares etc. The manufacturing facility of the company is located
at industrial area, Durgapur, West Bengal with an installed
capacity of 24000metric tonnes per annum (MTPA) for structural
steels and 50000 MTPA for MS ingots.
BSC C&C KURALI: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of BSC C&C
Kurali Toll Road Limited (BSC) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 157.30 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 4, 2020, placed the
rating(s) of BSC under the 'issuer non-cooperating' category as BSC
had failed to provide information for monitoring of the rating as
agreed to in its Rating Agreement. BSC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 20, 2021, March 30, 2021, April 4, 2021 and April 9, 2021. In
line with the extant SEBI guidelines, CARE has reviewed the rating
on the basis of the best available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings factors the on-going delays in servicing its debt
obligations which were reported in annual report of FY20.
Detailed description of the key rating drivers
At the time of last rating on May 4, 2020, the following were the
rating strengths and weaknesses (updated for the information
available from Registrar of Companies):
Key rating weakness
* Delays in meeting debt obligations, due to lower than expected
traffic on the toll road resulting in mismatch of cash flows: As
per Annual Report FY20, there are ongoing delays in meeting debt
obligations, primarily due to lower than expected traffic on the
toll road and higher outflow with regard to interest and debt
repayment resulting in mismatch of cash flows. BSC Kurali is
exposed to traffic risk as toll collections are its only source of
revenue.
Key Rating Strengths:
* Experienced Promoters: BSC Kurali is a SPV promoted by BSCPL and
C&C. BSCPL is an ISO 9001:2000 accredited infrastructure
Development Company and is into execution of projects for over 3
decades. BSCPL is engaged in various infrastructure developments
segments such as roads, bridges, irrigation projects, airports,
real estate and Hydro power plants. The company has strong
execution capabilities having executed 250 projects aggregating to
around 9000 lane km.
BSC C&C Kurali Toll Road Limited (BSC) is a Special Purpose Vehicle
(SPV) incorporated in February 2007 by BSCPL Infrastructure Limited
(BSCPL Infrastructure Limited; rated CARE BB; Stable / CARE A4 as
per PR dated April 7, 2021) and C&C Constructions Limited, which
currently holds 51% and 49% stake in the company, respectively. The
SPV is for the purpose of widening of an existing 44.60 km long, 2-
lane stretch between Kurali and Kiratpur to 4- lane and stretching
and maintenance of existing 2- lane section The total cost of the
project was INR408.10 crore funded through equity of INR104.18
crore (24%), NHAI grant of INR43.92 crore (11%) and Debt of INR260
crore (65%). The project has achieved COD in August 2011.
COX & KINGS: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Cox & Kings Financial Service Limited
1st Floor, Turner Morrison Building
16 Bank Street
Fort Mumbai 400001
Insolvency Commencement Date: May 7, 2021
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: November 3, 2021
Insolvency professional: Mr. Pardeep Kumar Sethi
Interim Resolution
Professional: Mr. Pardeep Kumar Sethi
RBSA Restructuring Advisors LLP
1121, Building No. 11
Solitaire Corporate Park
Andheri Kurla Road
Andheri East, Mumbai
Maharashtra 400093
E-mail: peekay.sethi@gmail.com
irp.ckfsl@rbsa.in
Last date for
submission of claims: May 21, 2021
D. S. CONTRACTORS: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of D. S.
Contractors Private Limited (DSCPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.69 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 7.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated February 7, 2020, placed the
rating of DSCPL under the 'issuer non-cooperating' category as
DSCPL had failed to provide information for monitoring of the
rating as agreed to in its Rating Agreement. DSCPL continues to be
non-cooperative despite repeated requests for submission of
information through email dated February 12, 2021, April 21, 2021,
April 26, 2021 and numerous phone calls. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
best available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
At the time of last rating on February 7, 2020 the following were
the rating weaknesses (Updated for information available from Roc
website):
Key Rating Weaknesses
* Delays in debt service obligations: As per banker interaction
dated November 26, 2018, there were on-going delays in servicing of
debt obligation.
DSCPL is a Panaji (Goa) based company promoted by Mr. Swaran Singh
Gill (Managing Director) along with his wife Ms. Jatinder Kaur.
DSCPL undertakes Engineering Procurement Construction (EPC) from
Government bodies as well as Private Companies. The company is a
registered as a Class-IA Contractor in the state of Karnataka and
engaged in civil construction work comprising of buildings, roads,
bridges etc. primarily in the states of Karnataka and Goa.
IL&FS ENERGY: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of IL&FS
Energy Development Company Limited (IEDCL) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 1,137.85 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Non-Convertible 900.00 CARE D; ISSUER NOT COOPERATING
Debentures Rating continues to remain
under ISSUER NOT COOPERATING
category
Proposed Non 100.00 CARE D; ISSUER NOT COOPERATING
Convertible Rating continues to remain
Debentures under ISSUER NOT COOPERATING
category
Long Term- 100.00 CARE D; ISSUER NOT COOPERATING
InterCorporate Rating continues to remain
Deposit (ICD) under ISSUER NOT COOPERATING
Issue category
Detailed Rationale & Key Rating Drivers
IEDCL has not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. In line with the extant SEBI
guidelines, CARE's ratings on IEDCL's Long-Term and Short-Term bank
facilities, Non-Convertible Debentures and ICDs continue to be
denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
At the time of last rating on June 17, 2020 the following were the
rating strengths and weaknesses:
Key Rating Weaknesses
* Delay in debt-servicing obligations: Ongoing delays and defaults
in servicing debt obligations. The same has been confirmed by
lender to CARE, as part of the due diligence exercise. CARE has
also not received NDS since September 2018.
IEDCL is a subsidiary of Infrastructure Leasing & Financial
Services Limited (IL&FS, rated CARE D; holds 91.42% stake) is into
power generation business through conventional and non-conventional
energy sources. At consolidated level, as on June 30, 2018 the
operational capacity of the company is around 2,803.50 MW.
IL&FS has received a binding offer for acquisition of the energy
advisory business undertaking of IEDCL, along with all the assets
and liabilities, as a going concern on a slump-sale basis, which
will be subject to a bid process akin to the 'Swiss challenge
method.'
INDIA: RBI Not in Favor of Fresh Insolvency Freeze
--------------------------------------------------
The Times of India reports that the Reserve Bank of India (RBI) has
shot down suggestions of a fresh suspension of the Insolvency &
Bankruptcy Code (IBC) due to the second wave of Covid-19, while
making it clear that banks can still restructure distressed but
viable loans, ensuring that their balance sheets remain
transparent.
During initial discussions with the government, RBI has indicated a
freeze will not help anyone in the long run as it will only show
lower level of non-performing assets (NPAs), government sources
told TOI. The government has not completely shut the door on the
issue but the regulator's reluctance will certainly weigh on the
decision.
Last year, RBI went along with the government decision to suspend
IBC provisions for six months, which was subsequently extended to a
year, but it had reservations, TOI recalls. Due to the last round
of freeze, several businesses managed to avoid reference to NCLT,
enabling managements to stay in the saddle, the report says. The
moment a case against a company is admitted, the promoters lose
control as an insolvency professional runs the show along with a
committee of creditors until the resolution process is completed,
relates TOI.
IRIS HEALTH: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of IRIS Health
Services Ltd (IHSL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 30.97 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.88 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from IHSL to monitor the rating
vide e-mail communications/letters dated April 5, 2021, April 12,
2021, April 14, 2021 and numerous phone calls. However, despite
repeated requests, the company has not provided the requisite
information for monitoring the ratings. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
publicly available information which however, in CARE's opinion is
not sufficient to arrive at a fair rating. Further, IHSL has not
paid the surveillance fees for the rating exercise as agreed to in
its Rating Agreement. The rating on IHSL's bank facilities will now
be denoted as CARE D; ISSUER NOT COOPERATING. Further due diligence
with the banker and auditor could not be conducted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
At the time of last rating in February 17, 2020 the following were
the rating strengths and weaknesses (updated the information
available from Ministry of Corporate Affairs).
Key Rating Weaknesses
* Delay in debt servicing: The company has been in default in
repayment of dues to bank.
Incorporated in December 18, 2007, IRIS Health Services Ltd (IHSL)
was promoted by Mr. Pavan Kumar Poddar, Mr. Govindswamy Sridharan,
Mr. Nikhil Poddar, Mr. Ramesh Kumar Kedia, Mr. Vivek Kumar Kathotia
and Mr. Sanjay Kumar Ginoria based out of Kolkata, West Bengal. The
company has started its commercial operations from February 2008
onwards. The company has been engaged in Healthcare Services.
Currently the hospital is running with 180 beds which consist of 35
deluxe beds, 22 emergency beds, 15 Intensive Care Unit (ICU), and
other general beds.
K. P. INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of K. P.
Industries (KPI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.69 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated April 30, 2020, placed the
rating KPI under the 'Issuer noncooperating' category as KPI had
failed to provide information for monitoring of the ratings as
agreed to in its rating agreement. KPI continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter dated March
16, 2021, March 26, 2021, April 5, 2021 etc. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
At the time of last rating on April 30, 2020 the following was the
rating weakness.
Key Rating Weakness
* Ongoing delay in debt servicing: KPI has been became NPA due to
weak liquidity position of the firm.
Established in the year 2009, Ahmedabad-based K.P. Industries (KPI)
is a partnership firm engaged in the processing of nonbasmati rice.
Key partners include Mr. Dhaval Prajapati and Mr. Atul Prajapati
who manage the day to day operations. As on March 31, 2016, it had
a total installed capacity of 69,120 Metric Tonnes per annum and
operates through its sole manufacturing unit at Kheda.
KEDARESHWAR BUILDERS: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shri
Kedareshwar Builders & Developers Private Limited (SKBDPL)
continues to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 70.88 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated February 10, 2020, continued
to keep the rating of SKBDPL under the 'issuer non-cooperating'
category as SKBDPL had failed to provide information for monitoring
of the rating. SKBDPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails
dated March 17, 2021, April 26, 2021, April 28, 2021, phone calls
and a letter dated April 26, 2021. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
At the time of last rating on February 10, 2020 the following were
the rating weaknesses (Updated for information available from Roc
website)
Key Rating Weaknesses
* Delays in debt servicing: CARE as part of its due diligence
exercise had interacted with banker of the company during previous
review exercise and as part of that exercise had ascertained that
there were delays in debt servicing. Further, SKDPL continues to be
non-cooperative and hence latest details are not available.
Shri Kedareshwar Builders & Developers Private Limited (SKBDPL) was
incorporated on 17th November 2014 by Madhav Deshpande and Abhijeet
Dudhane who are having more than two decades of experience in the
real estate business. The company is engaged in the business of
real estate development (residential and commercial projects)
mainly in Nagpur.
KREYA INFRATECH: CARE Cuts Rating on INR3.0cr LT Loan to C
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Kreya Infratech Private Limited (KIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING Rating continues to
Remain under ISSUER NOT
COOPERATING category and
Revised from CARE B-; Stable
Long Term/ 6.00 CARE C; Stable/CARE A4;
Short Term ISSUER NOT COOPERATING
Bank Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE B-; Stable/CARE A4
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated March 30, 2020 placed the
ratings of KIPL under the 'issuer non-cooperating' category as KIPL
had failed to provide information for monitoring of the rating.
KIPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated February 13, 2021, February 23, 2021, March 5,
2021. In line with the extant SEBI guidelines, CARE has reviewed
the rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. Further banker could not be contacted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The rating has been revised by taking into account non-availability
of information and no due-diligence conducted due to
non-cooperation by KIPL with CARE'S efforts to undertake a review
of the rating outstanding. CARE views information availability risk
as a key factor in its assessment of credit risk. Further, the
ratings continue to remain constrained owing to short track record
of operations, leveraged capital structure, working capital
intensive in nature and competitive nature of industry.
The ratings, however, continue to take comfort from experienced
management and moderate profitability margins.
Detailed description of the key rating drivers
At the time of last rating on March 30, 2020 the following were the
rating weaknesses and strengths:
Detailed description of the key rating drivers
Key Rating Weaknesses
* Short track record of operations: The company started commercial
operations in January, 2016 and has short of track record of
operations in this industry as compared to other established
players. FY17 (refer to period April 1 to March 31) was first full
year of operations for the company. Furthermore, the scale of
operations was small marked by total operating income of INR20.56
crore during FY20 (FY refers to the period April 1 to March 31).
The small scale limits the company's financial flexibility in times
of stress and deprives it from scale benefits.
* Leveraged capital structure: The capital structure of the company
stood leveraged as marked by overall gearing of 1.23x as on March
31, 2020 as against 1.31x as on March 31, 2019 on account of
increase in debt owing to addition of term loan to meet the CAPEX
requirements coupled with higher utilization of working capital
borrowings as on the balance sheet date.
* Working capital intensive in nature: The operations are working
capital intensive in nature on account of high dependence on
external borrowings to meet on working capital requirements. KIPL
extends a credit period of around three months to its clients. The
suppliers of KIPL extend a credit period around two months. The
company maintains inventory primarily in the form of raw material
for smooth execution of projects resulting in an average inventory
holding of 53 days in FY20.
* Competitive nature of industry: KIPL operates in a competitive
industry marked by the presence of a large number of players in the
organized and unorganized sector. Hence, going forward, due to
increasing level of competition, the profits margins are likely to
be range bound.
Key Rating Strengths
* Experienced management: The operations of KIPL are currently
being managed by Mr. S.K. Chabbra, Mr. Satish Mittal andMr. Manu
Aggarwal. Mr S.K. Chabbra has more than three decades of experience
in the civil construction industry. Mr. Satish Mittal and Mr. Manu
Aggarwal have around half a decade of experience and support Mr
Chabbra in managing the business operations.
* Moderate profitability margins: The profitability largely depends
on nature of project executed. For FY20 the profitability margins
of KIPL stood moderate as marked by PBILDT margin and PAT margin of
4.43% and 3.06% respectively. Further, owing to moderate
profitability; the coverage indicators of the firm stood moderate
as marked by interest coverage ratio and total debt to GCA of 1.81x
and 3.86x respectively in FY20.
Gurgaon based, Kreya Infratech Private Limited (KIPL) was
incorporated in 2015 by Mr. S.K. Chabbra, Mr. Satish Mittal and Mr.
Manu Aggarwal. The company is a turnkey contractor which provides a
comprehensive range of services including architectural planning,
designing, site survey & excavation, interior furnishings. KIPL has
primarily been engaged in the construction of schools and factory
buildings. The company completed a project of construction of
office and factory for AMD Industries in FY17.
LAKSHMI TOBACCOS: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Lakshmi
Tobaccos (LT) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.90 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated April 24, 2020, placed the
rating of LT under the 'issuer noncooperating' category as LT had
failed to provide information for monitoring of the rating. LT
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and an email
dated May 2020 to April 16, 2021. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
At the time of last rating on April 24, 2020 the following were the
rating strengths and weaknesses.
Key Rating Weakness
* Delays in debt Servicing: The firm has poor liquidity position
due to insufficient cash flows and therefore resulting in delays in
servicing debt obligations.
Andhra Pradesh based, Lakshmi Tobaccos (LT) was established in the
year 2000 as a proprietorship concern by Mr.S.Narayana Rao. Lakshmi
Tobaccos (LT) is an authorized licensed dealer in tobacco
registered with Tobacco Board for trading of Virginia tobacco
(VFC). LT is mainly engaged in trading of Virginia tobacco.
LAXMI TRADERS: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Laxmi
Traders (LT) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated February 14, 2020, placed
the rating of LT under the 'issuer noncooperating' category as LT
had failed to provide information for monitoring of the rating as
agreed to in its Rating Agreement. LT continues to be
non-cooperative despite repeated requests for submission of
information through e-mails dated April 28, 2021 and April 29,
2021, phone calls and a letter sent along with mail. In line with
the extant SEBI guidelines, CARE has reviewed the rating on the
basis of the best available information which however, in CARE's
opinion is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
At the time of last rating on February 14, 2020 the following were
the rating weaknesses:
Key Rating Weaknesses
* Delays in servicing of debt obligations: As per the interaction
with the banker, the cash credit account was overdrawn for more
than 90 days and the account was classified in the NPA category
during previous review exercise. Further, LT continues to be
non-cooperative and hence latest details are not available.
Laxmi Traders (LT) based out of Nagpur, Maharashtra is a
proprietorship concern promoted by Mr. Ramanarao Bholla and
commenced operation in January, 2013. Since inception, the firm has
been engaged in the trading of food grains i.e. rice, dal, chana,
wheat etc. The traded goods are purchased from the farmers based in
Nagpur and domestic suppliers situated at Andhra Pradesh, Tamil
Nadu, and Karnataka.
MBC AGRO INDUSTRIES: Insolvency Resolution Process Case Summary
---------------------------------------------------------------
Debtor: MBC Agro Industries LLP
Survey No. 1142
Kapadvanj, Modasa
Opp. Sahil Pulse Mill
Kapadvanj, Kheda
GJ 387620
IN
Insolvency Commencement Date: April 7, 2021
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: October 4, 2021
Insolvency professional: Malhar Rashmikant Mehta
Interim Resolution
Professional: Malhar Rashmikant Mehta
404, W1
Opp. PSP Project House
Off Iscon-Ambli Road
Ahmedabad 380058
E-mail: cirpmbc@gmail.com
malhar_mehta@hotmail.com
Last date for
submission of claims: May 7, 2021
MEGHA GRANULES: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Megha Granules Private Limited
Industrial Growth Centre (AIIDC)
Vill. Chatabari
Chaygaon 781123
Assam
Insolvency Commencement Date: May 5, 2021
Court: National Company Law Tribunal, Guwahati Bench
Estimated date of closure of
insolvency resolution process: November 8, 2021
Insolvency professional: Mr. Sandeep Khaitan
Interim Resolution
Professional: Mr. Sandeep Khaitan
2nd Floor, Sanmati Plaza
Christian Basti
G.S. Road
Guwahati 781005
Assam
E-mail: khaitansandeep@gmail.com
irpgranules@gmail.com
Last date for
submission of claims: May 26, 2021
ROHIT JEWELLERS: CARE Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Rohit
Jewellers Private Limited (RJPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short Term Bank 27.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from RJPL to monitor the rating
vide e-mail communications/letters dated April 5, 2021, April 12,
2021, April 14, 2021 and numerous phone calls. However, despite
repeated requests, the company has not provided the requisite
information for monitoring the ratings. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
publicly available information which however, in CARE's opinion is
not sufficient to arrive at a fair rating. Further, RJPL has not
paid the surveillance fees for the rating exercise as agreed to in
its Rating Agreement. The rating on RJPL's bank facilities will now
be denoted as CARE D; ISSUER NOT COOPERATING. Further due diligence
with the banker and auditor could not be conducted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
At the time of last rating in February 12, 2020 the following were
the rating strengths and weaknesses (updated the information
available from Ministry of Corporate Affairs).
Key Rating Weaknesses
* Ongoing delays in debt servicing: There are on-going delays in
debt servicing of the company.
Rohit Jewellers Private Limited (RJPL) was incorporated in December
1994. The company has been engaged in manufacturing and wholesale
of hand crafted gold jewelry, antique gold jewelry and stone
studded gold jewelry.
SADARAM JINING: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sadaram
Jining and Pressing Industries (SJPI) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.19 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated April 30, 2020, placed the
rating of SJPI under the 'Issuer non-cooperating' category as SJPI
had failed to provide information for monitoring of the ratings as
agreed to in its rating agreement. SJPI continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter dated March
16, 2021, March 26, 2021, April 5, 2021 etc. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
At the time of last rating on April 30, 2020 the following was the
rating weakness.
Key Rating Weakness
* Ongoing delay in debt servicing: As per due diligence with lender
SJPI was turned NPA due to weak liquidity position of the firm.
SJPI Patan-Gujarat based partnership firm was established in 2014
by Mr. Bharat Bhatiya, Mr. Bhavesh Patel, Mr. Chandanji Thakor, Mr.
Dashrat Bhatiya and Mr. Mafa Modi. The firm is engaged in cotton
ginning and pressing of raw cotton. SJPI has commenced its
operation from August 2014. The manufacturing unit of the firm is
located in Patan, Gujarat which has an installed capacity of 14,400
Metric tonnes per annum (MTPA) as on March 31, 2016 for raw cotton
processing.
SD MILKPRO: CARE Keeps D Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of SD MilkPro
Private Limited (SPPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.25 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated February 6, 2020, placed the
rating of SPPL under the 'issuer non-cooperating' category as SD
MilkPro Private Limited (SPPL) had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
SPPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and an email
dated February 05, 2021. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of the best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders, and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
At the time of last rating on February 6, 2020 the following were
the rating weaknesses (updated for the information available
Registrar of Companies):
Key Rating Weaknesses
* Delays in debt servicing: There are ongoing delays in debt
servicing and the account has been classified under SMA 2.
SPPL is a Pune (Maharashtra) based company incorporated in May 18,
2015. The company is engaged in the business of processing of milk
processing and milk based products and providing cold storage
facility for raw milk. The commercial operations commenced from
April 2018.
SHREEJI SALES: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shreeji
Sales Corporation (SSC) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short Term Bank 5.49 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated April 30, 2020 placed the
ratings of SSC under the 'issuer non-cooperating' category as SSC
had failed to provide information for monitoring of the ratings as
agreed to in its Rating Agreement. SSC continues to be
non-cooperative despite repeated requests for submission of
information through phone calls and emails dated March 16, 2021,
March 26, 2021, March 31, 2021, April 5, 2021 and April 23, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
ratings on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
At the time of last rating done on April 30, 2020 the following was
the rating weakness.
Key rating weaknesses
* Delays in debt servicing: SSC was irregular in servicing
principal and interest obligations of term loan obligations due to
weak liquidity position of the firm.
SSC was established as proprietorship firm in 2012 by Mr Bharat
Shah. SSC was established for trading of di-calcium phosphate and
mono-calcium phosphate. SSC is recently completed project of
manufacturing di-calcium phosphate and mono-calcium phosphate from
raw phosphate instead of trading with total project cost of INR4.64
crore. The plant will be located at Vadodara (Gujarat) with area of
1 lakh sq. ft. with proposed installed capacity of 300 tonnes per
month.
T. R. CHEMICALS: CARE Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of T. R.
Chemicals Limited (TRCL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 16.40 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 1.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from TRCL to monitor the rating
vide e-mail communications/letters dated April 13, 2021, April 15,
2021, April 19, 2021 and numerous phone calls. However, despite
repeated requests, the entity has not provided the requisite
information for monitoring the rating. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the
publicly available information which, however, in CARE's opinion is
not sufficient to arrive at a fair rating. The rating on TRCL's
bank facilities will now be denoted as CARE D; ISSUER NOT
COOPERATING. Further, the banker could not be contacted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Delays in the past: There were instances of delays in the account
in the past.
T. R. Chemicals Limited was incorporated in May 1993 as a Private
Limited Company. Subsequently, it was reconstituted as a closely
held Public Limited Company. Since its inception, the company is
engaged in manufacturing of sponge iron. The manufacturing unit of
the company is located at Rajgangpur, Sundargarh, Odisha. Company's
plant has an installed capacity of 45000 tons per annum (TPA). Mr.
Sanjeev Kumar Kapoor (Director), Mr. Gurdas Kapoor (Director), Mr.
Sunil Kumar Agarwal (Director) and Mr. Swapan Kumar Kapat
(Directors) who have 21 years, 21 years , 16 years and 11 years of
experiences, respectively, in the similar line of business, look
after the day to day operation of the company. They are further
supported by a team of experienced professionals.
TATA MOTORS: S&P Alters Outlook to Stable, Affirms 'B' ICR
----------------------------------------------------------
On May 17, 2021, S&P Global Ratings revised its outlook on
India-headquartered automobile company Tata Motors Ltd. and its
core subsidiary, TML Holdings Pte. Ltd., to stable from negative.
At the same time, S&P affirmed its 'B' long-term issuer credit
rating on Tata Motors and TML Holdings and the 'B' long-term issue
rating on the senior unsecured notes issued by the two companies.
The stable rating outlook reflects S&P's view that Tata Motors'
earnings and credit metrics would steadily improve over the next
12-18 months, benefiting from a more benign operating outlook
across its businesses.
Tata Motors will likely maintain healthy sales for the fiscal year
ending March 31, 2022.The company's operational outlook has
improved. Its sales for the fourth quarter of fiscal 2021 indicate
a material improvement in underlying demand for both commercial
vehicles and passenger cars. The commercial vehicle business
reported its strongest quarterly sales since fiscal 2019, while the
passenger car business continued to gain market share. The
passenger car business also turned EBITDA positive in fiscal 2021,
and EBITDA margin is likely to improve further to mid-single-digit
level in fiscal 2022.
S&P said, "Although the second wave of COVID-19 infections has
increased risks around these estimates, our base case assumes
operational disruptions will be mainly in the first quarter of
fiscal 2022. We anticipate earnings will recover in the rest of
fiscal 2022 as restrictions ease, similar to what we saw after the
first wave in fiscal 2021.
"We expect Tata Motors' credit metrics to improve steadily over
fiscals 2022 and 2023, supported by the better operational
performance and earnings.We estimate earnings at the Indian
operations will rise over the period toward fiscal 2019 levels,
when the company reported EBITDA of over Indian rupee (INR) 70
billion. Earnings at Tata Motors' U.K.-based subsidiary
com.spglobal.ratings.services.article.services.news.xsd.MarkedData@6a39fb27
(JLR) have also been recovering from the second half of fiscal
2021. At the same time, tighter working capital management has kept
debt levels in check. As such, we forecast Tata Motors'
debt-to-EBITDA ratio (adjusted for capitalized development expenses
and restructuring costs) will decline to about 4.0x over fiscals
2022 and 2023, from our estimate of 6.0x-6.5x as of March 31,
2021.
"Implementation risks associated with the business transformation
at JLR (Project Reimagine) raise uncertainties over the path of
deleveraging. However, we believe the risk is captured at the
current rating level.
"Tata Motors' large capital expenditure (capex) and negative free
operating cash flow constrain the rating. We expect the company to
continue to report negative free operating cash flow (adjusted for
capitalized product development and restructuring expenses) of
about INR100 billion per year over fiscals 2022 and 2023. This is
largely due to capex of about GBP2.5 billion per year at JLR. We
anticipate the Indian operations will largely breakeven at the free
operating cash flow level.
"Tata Motors' capex plans are, however, supported by a strong cash
position, especially at JLR, and the absence of significant debt
maturities over the next two years. We also view Tata Motors'
funding access as strong, as evident from the multiple refinancing
exercises taken by the company in fiscal 2021, despite choppy
operating conditions.
"The stable outlook reflects our expectation that Tata Motors'
earnings and leverage would improve steadily over the next 12-18
months, driven by JLR's operational performance and a material
improvement in Tata Motors' Indian operations. While renewed waves
of COVID-19 infections have raised operational risks, we expect
resultant disruptions to be temporary.
"We could downgrade Tata Motors if the company's earnings do not
recover as we expect, resulting in leverage remaining elevated.
This could be indicated by a failure to reduce its debt-to-EBITDA
ratio to about 5x by fiscal 2023. In a less likely scenario, we
could downgrade the company if its liquidity weakens
significantly.
"We could upgrade Tata Motors if the company's operational
performance surpasses our expectations such that its ratio of funds
from operations to debt exceeds 15% on a sustained basis. Any
material reduction in inorganic debt such as via asset monetization
could also lead to an upgrade."
VENTO POWER: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Vento Power
Infra Private Limited continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 196.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from Vento Power Infra Private
Limited to monitor the rating(s) vide e-mail communications dated
March 1, 2021; April 5, 2021; April 14, 2021. However, despite
repeated requests, the company has not provided the requisite
information for monitoring the ratings. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
best available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating. The rating of Vento Power
Infra Private Limited's bank facilities will now be denoted as CARE
D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating takes into account non-receipt of information including
No Default Statement (NDS) since August 2019.
Detailed description of the key rating drivers
At the time of last rating on February 24, 2020, the following were
the rating strengths and weaknesses (updated for the available
information).
Key Rating Weaknesses
* Delays in servicing of debt obligations: As on date, there are
ongoing delays in the servicing of debt obligations by the company
due to the poor liquidity position.
* Subdued operational performance: The 40 MW grid connected solar
photovoltaic (PV) power plant under VPIPL in District Balangir,
Odisha has reported unsatisfactory operating performance since
completion. Since completion till July, 2019, the plant generated
average PLF of 3.20% as against P-90 level of 22.50%. Low PLF is on
account of stabilization period needed by solar plant in its first
year of operations.
* Weak financial risk profile of promoters: Essel Green Energy
Private Limited (EGEPL, rated CARE D; Issuer Not Cooperating) is
the promoter company of Vento Power Infra Private Limited (VPIPL)
operating solar PV project of capacity 40 MW in Balangir District
of Odisha through VPIPL. EGEPL, promoted by Essel Infraprojects
Limited (EIL, rated CARE D; Issuer Not Cooperating), is the holding
company for the solar portfolio of the Essel Group, and also
provides O&M services to the projects owned by the Essel Group. EIL
had losses to the tune of INR198 crore in the year FY19. The
company has also monetized its solar portfolio to reduce debt at
the holding company level.
Vento Power Infra Private Limited is a Special purpose vehicle
(SPV) of Essel Green Energy Private Limited (EGEPL, rated CARE D;
Issuer Not Cooperating) and has developed solar PV project with
total capacity of 40 MW in Balangir District of Odisha. The Power
Purchase Agreement (PPA) has been executed between VPIPL and Solar
Energy Corporation of India Limited (SECI) for the purchase of
solar power for a period of 25 years at a tariff of INR4.43 per
unit which has been revised to INR3.05 per Kwh due to delay in
commissioning.
VIBHOR VAIBHAV: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Vibhor
Vaibhav Infra Private Limited (VVIPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 32.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated March 26, 2020 placed the
ratings of VVIPL under the 'issuer non-cooperating' category as
VVIPL had failed to provide information for monitoring of the
rating. VVIPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone calls
and a letter/email dated February 9, 2021, February 19, 2021, March
1, 2021. In line with the extant SEBI guidelines, CARE has reviewed
the rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. Further banker could not be contacted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The rating takes into account non-availability of requisite
information and no due-diligence conducted due to noncooperation by
VVIPL with CARE'S efforts to undertake a review of the rating
outstanding. CARE views information availability risk as a key
factor in its assessment of credit risk.
Detailed description of the key rating drivers
At the time of last rating on March 26, 2020 the following were the
rating weaknesses and strengths:
Detailed description of the key rating drivers
Key Rating Weaknesses
* Ongoing delays in servicing of debt obligation: There had been
ongoing delays in servicing of interest obligations based on
publicly available information.
New Delhi based Vibhor Vaibhav Infra Private Limited (VVIP) was
incorporated in August, 2001. The company is managed by Mr Praveen
Tyagi, Mr Vibhor Tyagi and Mr Vaibhav Tyagi. The company is 'A'
class approved government contractor and undertakes electrical
contracts on turnkey basis wherein it is engaged in supply,
installation and commissioning of power sub-stations, laying of
underground cables and transmission lines, street lights,
electrical works of buildings, etc. mainly for government
departments like Ghaziabad Development Authority, New Okhla
Industrial Development Authority (NOIDA), Greater Noida Industrial
Development Authority (GNIDA), Paschimanchal Vidyut Vitaran Nigam
Limited (PVVNL) and other local government bodies. The company is
also engaged in civil construction works such as construction of
sewer treatment plant, roads, etc. for government/ public sector
undertakings. In order to get the business, company has to
participate in bids/tenders floated by government and private
companies. It procures its material such as transformers, FRD
fencing, circuit breakers, cables etc. from RMC Limited, Steel Mrc.
Limited and Polycab Limited. The company has two group companies,
Vibhor Vaibhav Infrahome Private Limited and Solitaire Infrahome
Private Limited.
=====================
N E W Z E A L A N D
=====================
FFWL: Parent Company of Villa Maria Placed in Receivership
----------------------------------------------------------
John Anthony at Stuff.co.nz reports that the parent company of
Villa Maria has been placed in receivership, and shares in the
winery business will be sold.
According to Stuff, Brendon Gibson and Neale Jackson of Calibre
Partners have been appointed receivers of FFWL, Villa Maria
Estate's sole shareholder.
The receivership only affected FFWL and did not affect Villa Maria,
which was trading profitably, Mr. Gibson said.
FFWL is owned by Sir George and Karen Fistonich, who are also
directors alongside Alan Stuart. Fistonich founded Villa Maria in
Mangere, Auckland in the early 1960s.
Villa Maria had been looking to raise capital. New investment or a
sale of shares had been considered, and it had now been decided 100
per cent of shares in Villa Maria Estate would be sold, Mr. Gibson
said, Stuff relays.
A company can be forced into receivership if it is unable to pay
its debts to a secured creditor. A secured creditor can appoint a
receiver to sell company assets over which they have a financial
claim.
Mr. Gibson said Rabobank and ANZ were the secured creditors who
brought the receivership, Stuff discloses.
"The secured creditors are obviously owed money and the sale of the
shares will be used to repay them."
He would not say how much they were owed, Stuff states.
FFWL is classified on the Companies Office as a holding company
with passive investments in subsidiary companies. Its only asset
was shares in Villa Maria Estate and that was the only asset
receivers would look to sell, he said, Stuff relays.
"We will assess the position and then focus on completing a sale of
the shares."
Receivers would support Villa Maria's customers, suppliers, staff
and directors through the process, he said.
Receivers would work with parties which had expressed interest in
buying shares to try complete the receivership and share sale as
quickly as possible "but it could take a wee while", Mr. Gibson, as
cited by Stuff, said.
FFWL's receivership did not affect Villa Maria's offshore
subsidiaries, he said.
=====================
P H I L I P P I N E S
=====================
PHILIPPINES: Cuts GDP Growth Outlook Amid Tough Virus Fight
-----------------------------------------------------------
Bloomberg News reports that the Philippine government cut its
economic outlook for this year and next as it struggles with a
surge in coronavirus cases that threatens its recovery.
Gross domestic product is now tipped to grow 6% to 7% this year,
down from a previous estimate of 6.5%-7.5%, according to the
Development Budget Coordination Committee, which sets the
government's economic assumptions for budget purposes, Bloomberg
relays. The outlook for 2022 was lowered to 7%-9% growth, from
8%-10% earlier.
According to Bloomberg, the downgrade comes after first-quarter GDP
contracted more than expected, cementing the Philippines' status as
one of Asia's laggards in terms of recovery. Stricter curbs since
late March in the capital region and surrounding provinces, the
country's economic backbone, have shuttered businesses and
destroyed jobs.
"The effects of the Covid-19 pandemic may remain in the short-term,
but we are optimistic that the economy will return to its upward
growth trajectory starting this year," Bloomberg quotes Budget
Secretary Wendel Avisado as saying at a briefing in Manila.
Economies across Southeast Asia are facing an uphill battle as
fresh waves of Covid cases threaten recovery prospects, the report
notes. Tougher containment measures from Thailand to Singapore and
a slow vaccine rollout continue to weigh on business and consumer
confidence.
RB OF ALIMODIAN: MB Closes Bank; PDIC to Pay All Deposit Claims
---------------------------------------------------------------
The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP)
prohibited Rural Bank of Alimodian (Iloilo), Inc. from doing
business in the Philippines through MB Resolution No. 539.A dated
May 6, 2021 which also directed the Philippine Deposit Insurance
Corporation (PDIC), as Receiver, to proceed with the takeover and
liquidation of the bank.
The PDIC took over the bank on May 12, 2021.
For the safety of the bank clients and local residents, the PDIC
field personnel complied with the health, quarantine and travel
protocols in accordance with Resolution No. 98-A issued by the
Inter-Agency Task Force for the Emerging Infectious Disease (IATF).
The same Resolution also authorized the PDIC personnel to travel on
official business unimpeded to ensure that the PDIC is able to
fulfill its mandates under the law.
Rural Bank of Alimodian (Iloilo), Inc. is a two-unit rural bank
with Head Office located in Almacen St., Brgy. Poblacion,
Alimodian, Iloilo. Its lone branch, Leon Branch, is located in
Cabaluna St., Brgy. Poblacion, in Leon, Iloilo. Latest available
records show that as of December 31, 2020, Rural Bank of Alimodian
(Iloilo), Inc. has 5,419 deposit accounts with total deposit
liabilities of PHP274.4 million, of which 88% or PHP241.3 million
are insured deposits.
The PDIC assured depositors that all valid deposits and claims will
be paid up to the maximum deposit insurance coverage of
PHP500,000.00 per depositor.
Individual account holders of valid deposits with balances of
PHP100,000.00 and below, and who have no outstanding obligations
nor have not acted as co-makers of obligations with Rural Bank of
Alimodian (Iloilo), Inc., are not required to file deposit
insurance claims. These individual depositors must ensure that they
have complete and updated addresses with the bank. Depositors may
update their addresses by submitting Mailing Address Update Forms
(MAUF) until June 23, 2021, either through the dropbox available at
the bank premises, or by sending a scanned copy of said Form and
valid ID to email address, rbalimodian-pad@pdic.gov.ph. MAUF will
be made available at the bank premises or may be downloaded from
the PDIC website at www.pdic.gov.ph. Insurance payments for valid
deposits with balances of PhP100,000.00 and below will be made
through postal money order and targeted to be sent via mail
starting on July 9, 2021.
For business entities and all other depositors who are required to
file claims for insured deposit, receiving of claims is targeted to
start by July 22, 2021, will be announced through the PDIC website
www.pdic.gov.ph, and PDIC's official Facebook page,
www.facebook.com/OfficialPDIC.
Borrowers are likewise reminded to continue paying their loan
obligations with the closed Rural Bank of Alimodian (Iloilo), Inc.
and to transact only with designated PDIC representatives. The
procedures for settlement of loan obligations are available in the
PDIC website.
For more information on the requirements and procedures for filing
deposit insurance claims and settlement of loan obligations,
depositors and borrowers of the bank are enjoined to attend the
virtual Depositors-Borrowers' Forum scheduled on July 5, 2021.
Details of the Forum will also be announced in the PDIC website and
Facebook page.
As provided for by the PDIC Charter, the PDIC shall likewise accept
Letters of Intent from interested banks and non-bank institutions
for possible purchase of assets and assumption of liabilities (P&A)
as a mode of liquidating Rural Bank of Alimodian (Iloilo), Inc.
Letters of intent should be submitted within 60 days from takeover
date subject to compliance with the requirements prescribed under
the Guidelines in Pre-qualifying Proponents and Evaluating the
Proposals for Purchase of Assets and Assumption of Liabilities Mode
of Liquidating Closed Banks which can be accessed in the PDIC
website.
To ensure the safety of all concerned and observance of health
protocols, all clients of the bank may communicate with PDIC
through any of the following modes: Public Assistance Hotline
during office hours at (02) 8841-4141, Toll-Free Hotline at
1-800-1-888-PDIC (7342) during office hours for those outside Metro
Manila, e-mail to rbalimodian-pad@pdic.gov.ph or Facebook private
message. In view of the strict health protocols, visits to the PDIC
will be on appointment basis only. Appointment schedule may be
secured through telephone, email or Facebook private message.
===============
T H A I L A N D
===============
COCA HOLDING: Closes Branch in Siam Square Due to Covid-19 Impact
-----------------------------------------------------------------
Bangkok Post reports that Coca Holding International, a pioneer of
sukiyaki restaurants in Thailand, is scheduled to close its
legendary 54-year old suki branch in Siam Square today, due to the
severe impact of Covid-19 outbreaks.
Bangkok Post relates that Natalie Phanphensophon, the company's
chief operating officer, said the company will permanently stop the
operation of Coca Suki restaurant on Henri Dunant road after the
leasing contract with the Property Management of Chulalongkorn
University (PMCU) expires.
"I feel sorry for the closure of Coca's Henri Dunant branch," the
report quotes Ms. Natalie as saying. "My grandfather opened this
branch 54 years ago. It is the second branch of Coca Suki but it
was the one that built brand awareness about Coca. Here, Coca is
not just a suki restaurant but a place to hang out for both
teenagers and adults. It is also a place for wedding events and
many more celebrations."
According to Bangkok Post, Ms. Natalie said 60 staff at this branch
will move to the remaining Coca Suki restaurants.
"We've tried our best to keep staff. Though it is not difficult to
find staff in the food and beverage business given the number of
unemployed people now, it is quite difficult to find quality
people."
Ms. Natalie said the company is still on the hunt for a
smaller-sized space in the Siam location to open its new Coca Suki
restaurant for its customers.
Since the Covid-19 pandemic, the company has closed three Coca Suki
restaurants, including locations at Time Square, Chang Wattana and
Siam Square, the report notes. Currently, there are 6 Coca Suki
restaurants in service at Surawong, CentralWorld, Sukhumvit 39,
Megabangna, Hua Hin and Krungthep Kritha locations. Before the
Covid-19 pandemic, it owned up to 15 branches.
Bangkok Post adds that Ms. Natalie said it has been difficult for
the restaurant amid Covid-19 outbreaks starting from the very first
wave to the third because Coca provides 100% dine-in service.
Though the company has fully adapted its business to delivery
channels, she said the company has noticed that these alternatives
cannot provide a full experience like a sit-in dining restaurant.
*********
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.
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