/raid1/www/Hosts/bankrupt/TCRAP_Public/210705.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
Monday, July 5, 2021, Vol. 24, No. 127
Headlines
A U S T R A L I A
CITY ROAD: First Creditors' Meeting Set for July 12
GRACE BUNCLE: First Creditors' Meeting Set for July 13
MELBOURNE CITY ROAD: First Creditors' Meeting Set for July 12
NOW TRUST 2021-1: Moody's Assigns B2 Rating to AUD3.4MM Cl F Notes
TRL TENNANT: First Creditors' Meeting Set for July 12
C H I N A
CHINA EVERGRANDE: Slashes Land Purchases to Cut Costs
TD HOLDINGS: Posts $156,766 Net Income in First Quarter
I N D I A
ALI AGENCY: CRISIL Keeps D Debt Rating in Not Cooperating
ANAND ELECTRICALS: CRISIL Keeps D Debt Ratings in Not Cooperating
BAIT LOGITECH: CRISIL Lowers Rating on INR6.6cr Loan to D
BANSI MALL: CRISIL Lowers Rating on INR250cr LT Loan to C
BLUE STAR: CRISIL Keeps D Debt Rating in Not Cooperating
CEASAN GLASS: CRISIL Keeps D Debt Ratings in Not Cooperating
CREATIVE LOOMS: CRISIL Keeps D Debt Rating in Not Cooperating
DANIA ORO: CRISIL Keeps D Debt Ratings in Not Cooperating
DELHI INT'L AIRPORT: Fitch Lowers LT IDR to 'BB-', Outlook Neg.
DIMESCO FOOTCARE: CRISIL Reaffirms B Rating on INR5.20cr Loan
DURGA PARAMESHWARI: CRISIL Reaffirms B Rating on INR10cr Loans
DYNAMIX CHAINS: CRISIL Keeps D Debt Ratings in Not Cooperating
EXTOL INDUSTRIES: CRISIL Keeps D Debt Rating in Not Cooperating
GAUTAMI CHEMICALS: CRISIL Keeps D Debt Rating in Not Cooperating
ISR INFRA: CRISIL Keeps D Debt Ratings in Not Cooperating
JAHANVI ISPAT: CRISIL Keeps D Debt Ratings in Not Cooperating
LEADING HOTELS: Insolvency Resolution Process Case Summary
MUTHULAXMI SPINNING: CRISIL Keeps D Debt Ratings in Not Cooperating
PARAMOUNT MINERALS: CRISIL Cuts Rating on INR40.22cr Loan to D
R. K. NATURAL: CRISIL Reaffirms B+ Rating on INR9.0cr Loans
RAYBAN FEEDS: CRISIL Keeps D Debt Ratings in Not Cooperating
SPRAY ALCANS: CRISIL Keeps D Debt Ratings in Not Cooperating
UNIQUE MALLS: CRISIL Lowers Rating on INR169.5cr LT Loan to C
VEGGIECRAFT FOOD: CRISIL Keeps D Debt Ratings in Not Cooperating
YASH JEWELLERY: CRISIL Keeps D Debt Ratings in Not Cooperating
I N D O N E S I A
ALAM SUTERA: Moody's Affirms Caa1 CFR, Alters Outlook to Stable
ALAM SUTERA: S&P Raises ICR to 'CCC+' on Reduced Refinancing Risks
J A P A N
CITIZEN WATCH: Egan-Jones Hikes Senior Unsecured Ratings to BB+
FURUKAWA ELECTRIC: Egan-Jones Keeps BB+ Senior Unsecured Ratings
MAZDA MOTOR: Egan-Jones Keeps BB Senior Unsecured Ratings
SOFTBANK GROUP: Egan-Jones Keeps B+ Senior Unsecured Ratings
UNITIKA LIMITED: Egan-Jones Keeps CCC Senior Unsecured Ratings
N E W Z E A L A N D
THE REDHEADS: Chapel Bar Placed in Liquidation
S I N G A P O R E
CMR GOLD: Mann & Associates Appointed as Provisional Liquidators
DOUBLE ACE: Creditors' Meeting Set for July 14
EAGLE HOSPITALITY: Monarch Acquires 10 Hotels for $360 Million
LC GENESIS: Creditors' Proofs of Debt Due August 2
PARK HOTEL: High Court Grants Wind-Up Bid
WEE KIAT: Creditors' Proofs of Debt Due August 3
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A U S T R A L I A
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CITY ROAD: First Creditors' Meeting Set for July 12
---------------------------------------------------
A first meeting of the creditors in the proceedings of City Road
Melbourne Pty Ltd will be held on July 12, 2021, at 10:00 a.m. via
virtual meeting.
Bruce Gleeson and Alan Godfrey Topp of Jones Partners were
appointed as administrators of City Road on June 30, 2021.
GRACE BUNCLE: First Creditors' Meeting Set for July 13
------------------------------------------------------
A first meeting of the creditors in the proceedings of Grace Buncle
Pty Ltd will be held on July 13, 2021, at 10:00 a.m. at the offices
of Rodgers Reidy, Level 9, River Quarter, 46 Edward Street, in
Brisbane, Queensland.
Kaily Lyn Chua and David James Hambleton of Rodgers Reidy were
appointed as administrators of Grace Buncle on July 1, 2021.
MELBOURNE CITY ROAD: First Creditors' Meeting Set for July 12
-------------------------------------------------------------
A first meeting of the creditors in the proceedings of Melbourne
City Road Centre Pty Ltd will be held on July 12, 2021, at 10:15
a.m. via virtual meeting.
Bruce Gleeson and Alan Godfrey Topp of Jones Partners were
appointed as administrators of Melbourne City Road on June 30,
2021.
NOW TRUST 2021-1: Moody's Assigns B2 Rating to AUD3.4MM Cl F Notes
------------------------------------------------------------------
Moody's Investors Service has assigned definitive ratings to the
notes issued by Perpetual Corporate Trust Limited, as trustee of
NOW Trust 2021-1.
Issuer: NOW Trust 2021-1
AUD156.0 million Class A Notes, Assigned Aaa (sf)
AUD12.2 million Class B Notes, Assigned Aa2 (sf)
AUD10.2 million Class C Notes, Assigned A2 (sf)
AUD5.8 million Class D Notes, Assigned Baa2 (sf)
AUD10.4 million Class E Notes, Assigned Ba2 (sf)
AUD3.4 million Class F Notes, Assigned B2 (sf)
The AUD2.0 million Class G Notes are not rated by Moody's.
The transaction is a cash securitisation of a portfolio of
Australian unsecured and secured (primarily by motor vehicles)
personal loans originated by Now Finance Group Pty Ltd (NFG,
unrated). This is NOW Finance's second personal loans transaction
from its NOW Trust ABS Program.
NFG is a private company (52.9% owned by Wingate Group), operating
as a non-bank lender in the Australian personal loan market under
its registered trademark NOW FINANCE. NFG began originating
personal loans in 2013 and has settled approximately AUD750 million
of new loans to about 33,000 customers as of 28 May 2021.
NOW Trust 2021-1 is NFG's second personal loan ABS transaction.
Initially, the Class A, Class B, Class C, Class D, Class E and
Class F Notes will benefit from 22.0%, 15.9%, 10.8%, 7.9%, 2.7% and
1.0% of note subordination, respectively. The notes will be repaid
on a sequential basis until the credit enhancement of the Class A
Notes is at least 30.0%.
The notes will also be repaid on a sequential basis if there are
any unreimbursed charge-offs on the notes, unreimbursed principal
draws, if cumulative gross principal losses exceed 7.5%, if 60+ day
arrears exceed 4.0%, or if the first call option date has passed.
At all other times, the structure will follow a pro-rata repayment
profile (assuming pro-rata conditions are satisfied).
Moody's analysis also accounts for the risk of the transaction
being over or under-hedged. This risk arises because the notional
amount in the swap agreement is based on the repayment profile of
the pool, assuming a certain level of prepayments and expected
defaults. If these actuals deviate from this assumption, the
transaction is exposed to the risk of being over-hedged or
under-hedged.
As of the June 10, 2021 cut-off date, the securitised pool
consisted of 9,003 personal loans. The total outstanding balance of
the receivables was AUD199,991,815 comprising 79.5% unsecured and
20.5% secured loans. The average account balance was AUD22,214 with
a weighted average interest rate (excluding fees) of 12.96% and a
weighted average seasoning of 13.9 months.
RATINGS RATIONALE
The definitive ratings take into account, among other factors:
The limited amount of historical data. NFG was established in
2013, with significant origination growth beginning in 2017. The
static loss data used for Moody's extrapolation analysis reflects
NFG's short origination history, which is limited to the
origination vintages Q4 2013 through to Q1 2021 and covers the full
cycle for only three vintages. To address this limited data,
Moody's have overlaid additional stresses into its default
assumptions to account for the limited data.
The high degree of dependency on NFG. NFG acts as the sponsor,
originator, servicer and trust manager. This dependency is
mitigated by the inclusion of AMAL Asset Management Limited (AMAL,
unrated) as a backup servicer, as well as by various replacement
and notification triggers. AMAL is an experienced third-party
servicer in the Australian Market.
The interest rate swap provided by National Australia Bank Limited
(Aa3/P-1/Aa2(cr)/P-1(cr)) and the fact that the notional balance of
the swap is based on a schedule.
The minimum credit enhancement levels set for each class of
notes.
The availability of a significant amount of excess spread over the
life of the transaction.
The liquidity facility in the amount of 1.5% of the note balance
subject to a floor of AUD500,000.
The coronavirus pandemic has had a significant impact on economic
activity. Although global economies have shown a remarkable degree
of resilience to date and are returning to growth, the uneven
effects on individual businesses, sectors and regions will continue
throughout 2021 and will endure as a challenge to the world's
economies well beyond the end of the year. While persistent virus
fears remain the main risk for a recovery in demand, the economy
will recover faster if vaccines and further fiscal and monetary
policy responses bring forward a normalization of activity. As a
result, there is a heightened degree of uncertainty around Moody's
forecasts. Moody's analysis has considered the effect on the
performance of consumer assets from a gradual and unbalanced
recovery in Australian economic activity.
Moody's regard the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety.
MAIN MODEL ASSUMPTIONS
Moody's base case assumptions are a default rate of 7.25%, a
recovery rate of 10.0% and a portfolio credit enhancement of 32.0%.
Moody's assumed default rate and recovery rate are stressed
compared to the historical levels of 6.1% (extrapolated) and 11.6%
(observed) respectively.
The difference between the actual and assumed default rate and
recovery rate is in part explained by the addition of several
stressed curves (for example, average default rate multiplied by
three) to address the lack of long origination history.
Methodology Underlying the Rating Action
The principal methodology used in these ratings was "Moody's
Approach to Rating Consumer Loan-Backed ABS" published in July
2020.
Factors That Would Lead to an Upgrade or Downgrade of the Ratings
Factors that could lead to an upgrade of the notes include a rapid
build-up of credit enhancement due to sequential amortization or a
better-than-expected collateral performance. The Australian job
market is a primary driver of performance.
Factor that could lead to a downgrade of the notes is a
worse-than-expected collateral performance, poor servicing, error
on the part of transaction parties, a deterioration in the credit
quality of transaction counterparties, a lack of transactional
governance, or fraud.
TRL TENNANT: First Creditors' Meeting Set for July 12
-----------------------------------------------------
A first meeting of the creditors in the proceedings of TRL Tennant
Creek Pty Ltd will be held on July 12, 2021, at 11:00 a.m. at the
offices of Rodgers Reidy, 22 Lindsay Street, in Perth, WA.
Jack Robert James and Paula Lauren Smith of Rodgers Reidy were
appointed as administrators of TRL Tennant on June 30, 2021.
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C H I N A
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CHINA EVERGRANDE: Slashes Land Purchases to Cut Costs
-----------------------------------------------------
Caixin Global reports that troubled property conglomerate China
Evergrande Group slashed land purchases in the first half of the
year causing it to slide precipitously out of the country's top 100
developers in terms of acquisitions as it struggles to boost
revenue and cut expenditure to pay off over CNY600 billion ($92.6
billion) in debts.
Caixin relates that Evergrande's tightening of the purse strings
caused it to relinquish the No. 1 spot in terms of land purchases
it held in the first half of last year, with acquisitions below
CNY3.7 billion, the lowest amount in the top 100, according to data
published on July 1 by property research firm China Index Academy
Ltd. There was no specific ranking or figure available for
Evergrande.
In contrast, the Hong Kong-listed company spent CNY63.3 billion
during the same period in 2020 and was supplanted in the top spot
this year by China Vanke Co. Ltd., who made purchases worth CNY96.2
billion in the first half of this year, Caixin says.
About China Evergrande
China Evergrande Group is an integrated residential property
developer. The Company, through its subsidiaries, operates in
property development, investment, management, finance, internet,
health, culture, and tourism markets.
As reported in the Troubled Company Reporter-Asia Pacific on
July 2, 2021, Moody's Investors Service has downgraded the
corporate family ratings of China Evergrande Group, Hengda Real
Estate Group Company Limited, Tianji Holding Limited and the backed
senior unsecured ratings of Scenery Journey Limited.
The affected ratings are as follows:
Evergrande's CFR has been downgraded to B2 from B1, and its senior
unsecured ratings have been downgraded to B3 from B2;
Hengda's CFR has been downgraded to B2 from B1;
Tianji's CFR has been downgraded to B3 from B2;
Scenery Journey's backed senior unsecured ratings have been
downgraded to B3 from B2;
The backed senior unsecured rating on the notes issued by Scenery
Journey are guaranteed by Tianji. The notes are also supported by a
keepwell deed and a deed of equity interest purchase undertaking
between Hengda, Tianji, Scenery Journey and the bond trustee. At
the same time, Moody's has placed the ratings under review for
further downgrade. The previous ratings outlook was negative.
TD HOLDINGS: Posts $156,766 Net Income in First Quarter
-------------------------------------------------------
TD Holdings, Inc. filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q disclosing net income of $156,766
on $29.58 million of total revenue for the three months ended March
31, 2021, compared to a net loss of $354,485 on $1.21 million of
total revenue for the three months ended March 31, 2020.
As of March 31, 2021, the Company had $205.14 million in total
assets, $58.95 million in total liabilities, and $146.19 million in
total equity.
As of March 31, 2021, the Company had positive working capital of
$58 million. In addition, the Company continues to generate
operating cash flow from its continuing operations of $3.95
million.
During the three months ended March 31, 2021, the Company entered
into additional private placement agreements with certain private
investors and issued 15,000,000 shares of common stock at $1.63 per
share for $24,450,000 sold unsecured senior convertible promissory
notes in the aggregate principal amount of $4,990,000 and also sold
to certain investor and issued 1,353,468 shares for totally $2.62
million collected.
Total equity financing from this transaction was $31.58 million.
The Company expects to use the proceeds from this equity financing
as working capital to expand its commodity trading business.
Based on above financing activities, the management believes that
the Company will continue as a going concern in the following 12
months.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1556266/000121390021034268/f10q0321_tdholdings.htm
About TD Holdings
Headquartered in Beijing, People's Republic of China, TD Holdings,
Inc., (formerly known as Bat Group, Inc.) has become a used
luxurious car leasing business as well as a commodities trading
business operating in China since the disposition of its direct
loans, loan guarantees and financial leasing services to
small-to-medium sized businesses, farmers and individuals in July
2018. The Company's current operations consist of leasing of
luxurious pre-owned automobiles and operation of a non-ferrous
metal commodities trading business.
TD Holdings reported a net loss of $5.95 million for the year ended
Dec. 31, 2020, compared to a net loss of $6.94 million for the year
ended Dec. 31, 2019. As of Dec. 31, 2021, the Company had $167.18
million in total assets, $47.15 million in total liabilities, and
$120.03 million in total equity.
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I N D I A
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ALI AGENCY: CRISIL Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Ali Agency
(Ali; part of Mahavir group) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 16 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with Ali for
obtaining information through letters and emails dated November 21,
2020 and May 31, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of ALI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ALI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
ALI continue to be 'CRISIL D Issuer Not Cooperating'.
For arriving at its rating, CRISIL Ratings has combined the
business and financial risk profiles of Ali and Mahavir
Enterprises. This is because both the firms, together referred to
as the Mahavir group, have a common management and significant
operational synergies.
Promoted by Mr. Pawan Kumar Jajodia, the Mahavir group primarily
trades in sugar, pulses, and edible oil.
ANAND ELECTRICALS: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Anand
Electricals (AE) continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL D (Issuer Not
Cooperating)
Cash Credit 2 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 2 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 10 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with AE for
obtaining information through letters and emails dated November 21,
2020 and May 31, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AE, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AE is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of AE
continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Formed in 2005 as a proprietorship firm by Mr. Ramakrishna Vetal,
AE, an EPC contractor, undertakes projects to set up transmission
lines and towers for public and private entities.
BAIT LOGITECH: CRISIL Lowers Rating on INR6.6cr Loan to D
---------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
Bait Logitech Private Limited (BLPL) to 'CRISIL D/CRISIL D' from
'CRISIL B-/Stable/CRISIL A4'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 6.6 CRISIL D (Downgraded from
'CRISIL A4')
Cash Credit 5.5 CRISIL D (Downgraded from
'CRISIL B-/Stable')
The downgrade reflects a 15-day delay in repayment of term loan
(guaranteed emergency credit line).
The ratings reflect the company's subdued financial risk profile
and large working capital requirement. These weaknesses are
partially offset by the extensive experience of the management in
the logistics and liaison services industry.
Key Rating Drivers & Detailed Description
Weaknesses:
* Subdued financial risk profile: Networth rose marginally to a
modest INR4.6 crore as on March 31, 2020, from INR4.5 crore a year
earlier. Gearing was high at 4.23 times as on March 31, 2020.
Interest coverage ratio was modest at around 0.55 time in fiscal
2020.
* Large working capital requirement: Gross current assets (GCAs)
were 1,886 days as on March 31, 2020, because of stretched
receivables and sizeable inventory. Operations will remain working
capital intensive over the medium term.
Strength:
* Extensive experience of the management: Though BLPL was
incorporated in 2010, the management's extensive experience in the
steel industry through other entities has helped to establish
healthy relationships with customers and suppliers, resulting in
repeat orders.
Liquidity: Poor
Bank limit was fully utilised during the 12 months through March
2021. Projected cash accrual per annum over the medium term will be
inadequate to cover yearly debt obligation.
Rating Sensitivity Factors
Upward factors:
* Timely servicing of debt obligation
* Improvement in the working capital cycle with GCAs at less than
300 days
* Utilisation of bank limit at less than 95% for at least three
months
* Higher-than-expected sales and profitability, leading to increase
in net cash accrual
Incorporated in May 2010, BLPL provides logistics and liaison
services for the iron ore mining industry, and project and mining
consultancy services. It also fabricates heavy steel structures.
The company is promoted by Mr. Brahma Nanda Mishra. It has a unit
in Tangi, Odisha.
BANSI MALL: CRISIL Lowers Rating on INR250cr LT Loan to C
---------------------------------------------------------
CRISIL Ratings has removed its rating on the bank facilities of
Bansi Mall Management Company Private Limited (BMMCPL) from 'Rating
Watch with Developing Implications' and downgraded it to 'CRISIL C'
from 'CRISIL B-'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 250 CRISIL C (Downgraded from
'CRISIL B-'; Removed from
'Rating Watch with
Developing Implications')
The rating downgrade reflects weak liquidity position of the
company. The company has not received any rental income since March
2020 and is not expected to receive the same till February 2022.
Consequently, cash accrual for the fiscal may not be sufficient to
meet debt obligations falling due in March 2022. The company is
expected to be dependent on group support to manage repayments
commencing from March 2022. However, the credit risk profile of the
Future group has also weakened significantly due to the pandemic,
further affecting the credit risk profile of the company.
The rating was placed on watch on October 13, 2020, following the
company's application for restructuring of its term loans under the
Reserve Bank of India's (RBI's) guidelines issued on August 6,
2020, and the 'Resolution Framework for COVID-19 related stress'.
Subsequently, the one-time restructuring (OTR) plan was implemented
by lenders on June 11, 2021, wherein principal repayment of the
existing term loans has been deferred to March 2022. Interest due
from March 2020 to February 2022 will be converted into a funded
interest term loan (FITL) payable over 2 years with repayment
commencing in March 2022. The resolution of watch is in line with
CRISIL Ratings' approach to default recognition for entities
applying for restructuring under the RBI's resolution framework
published in the criteria alert titled 'CRISIL's approach to
Covid-19-related restructuring'.
The rating continues to take into account weakening of the credit
profiles of tenants, which are also group companies and BMMCPL's
modest capital structure. These weaknesses are partially offset by
extensive track record of the promoters in managing malls,
need-based financial support from group companies, and the personal
guarantee from promoters for the rated loans.
Analytical Approach
CRISIL has taken a standalone view on BMMCPL, as there is no
financial linkage with other group companies.
Unsecured loans of INR644 crore (as of March 31, 2020) from the
promoters have been treated as neither debt nor equity as the loan
is interest-free and subordinate to bank debt. The treatment is in
line with the 'Treatment of unsecured loans from promoters' section
in the criteria 'CRISIL Ratings' approach to financial ratios.
Key Rating Drivers & Detailed Description
Weaknesses:
* Weakening of credit risk profiles of tenants: The company has
leased out its entire leasable area to entities of the Future
group: Future Lifestyle Fashions Ltd (FLFL; rated 'CRISIL C/Watch
Developing/CRISIL A4' with rating on non-convertible debentures at
'CRISIL D') and Future Retail Ltd (FRL). The credit risk profiles
of the tenants have weakened due to the impact of the pandemic,
resulting in the company not receiving any rental income since
March 2020 and rent waiver being given to tenants till February
2022. This has led to instability and mismatch in cash flow, which
is expected to continue over the near term. The company had availed
the six-month moratorium provided by the RBI from March 2020 and
then opted for OTR to tide over the mismatch. The OTR plan has now
been implemented with debt servicing commencing from March 2022.
The company's ability to recover the overdue rental income and
service debt obligations in a timely manner will remain a key
rating sensitivity factor.
* Modest capital structure: The net worth was a negative INR187
crore as of March 31, 2020. The company has been highly leveraged
historically. However, as of March 31, 2020, debt outstanding of
INR207 crore comprised INR189 crore of secured bank loan, with the
rest being preference share capital. Furthermore, the company does
not plan to contract any incremental external debt and intends to
reduce overall debt.
* High exposure to group companies, but not expected to increase
further: As of March 31, 2020, loans and advances to group
companies were INR197 crore, as against INR342-529 crore between
fiscals 2014-2018. In line with the undertaking provided to CRISIL
Ratings, the company will not be substantially increasing its
exposure to group companies in the near term.
Strengths:
* Extensive experience of the promoters and their financial
support: The promoters have been in the retail and mall management
businesses for over 25 years through the Future group, which
operates retail chains in 95 cities across India, covering about
160 lakh square feet (sq. ft). The group has been supporting
BMMCPL's operations since it was acquired by Mr. Kishore Biyani in
2006. There is high commitment from the promoters towards this
mall, with personal guarantees given by Mr. Kishore Biyani and Mr.
Vijay Biyani for the rated loans. There was INR644 crore of
outstanding unsecured loan from promoters as of March 2020.
Nevertheless, the extent and timeliness of future support will
remain key rating sensitivity factors.
Liquidity: Poor
Liquidity is expected to remain constrained over the medium term.
The company has not received any rental income since the lockdown
in March 2020 and does not expect to receive any rental income till
February 2022 due to rent waiver given to the tenants. Even though
the mall reopened on August 5, 2020, footfall is low. The company
maintains a debt service reserve account (DSRA) of INR5.47 crore
(equivalent to two months of debt servicing). However, the DSRA may
not be sufficient to meet debt obligations commencing from March
2022. The promoter group's financial flexibility has also weakened,
thereby limiting their ability to support the company, in case of
any exigency.
Rating Sensitivity factors
Upward factors
* Stabilisation of operations and collection of rentals before
February 2022, leading to positive earnings before interest, taxes,
depreciation and amortization (EBITDA) for fiscal 2022 and growth
of 5% thereafter
* Significant reduction in debt through prepayment
Downward factors
* Weakening of debt protection metrics because of
lower-than-anticipated cash flow, resulting from rent waiver to
tenants beyond February 2022, vacancy over 10% or
lower-than-expected lease rental rates
* Delayed or lower-than-expected financial support from promoters
or group companies
BMMCPL was incorporated in 2005 by the promoters of the Future
group to develop and manage SOBO Central Mall (formerly Crossroad
Mall) at Haji Ali, in Mumbai. It also acts as a special-purpose
vehicle for other companies of the Future group. SOBO Central Mall
has total leasable area of 1.5 lakh sq ft, which has been entirely
rented out to clients such as Future Consumer Enterprises Ltd
(FCEL), FRL and FLFL, with FCEL occupying only 1% of the leasable
area.
BLUE STAR: CRISIL Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Blue Star
Construction Co. (BSCC; a part of the Blue Star group) continues to
be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with BSCC for
obtaining information through letters and emails dated November 21,
2020 and May 31, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of BSCC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on BSCC
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
BSCC continue to be 'CRISIL D Issuer Not Cooperating'.
For arriving at the ratings, CRISIL Ratings has combined the
business and financial risk profiles of BSCC and its group company,
Blue Star Building Materials Pvt Ltd (BSBMPL). That's because the
two entities, together referred to as the Blue Star group, have
strong financial and operational linkages and a common management.
The Blue Star group is promoted by Navi Mumbai-based Mr. Pandurang
Thakur and family. BSCC, set up as a partnership firm in 1978,
constructs and maintains roads. BSBMPL, incorporated in 1996,
manufactures and lays paver blocks.
CEASAN GLASS: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Ceasan Glass
Private Limited (CGPL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL D (Issuer Not
Cooperating)
Funded Interest 1.94 CRISIL D (Issuer Not
Term Loan Cooperating)
Long Term Loan 12.1 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 2.46 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Working Capital 2.5 CRISIL D (Issuer Not
Term Loan Cooperating)
CRISIL Ratings has been consistently following up with CGPL for
obtaining information through letters and emails dated November 21,
2020 and May 31, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of CGPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on CGPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
CGPL continue to be 'CRISIL D Issuer Not Cooperating'.
CGPL was set up in 2007 by Mr. C H V N Raghurama Gupta. Based in
Ongole, Andhra Pradesh, the company manufactures figured,
patterned, or wired glass.
CREATIVE LOOMS: CRISIL Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Creative Looms
and Crafts Private Limited (CLCPL) continues to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 18 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with CLCPL for
obtaining information through letters and emails dated November 21,
2020 and May 31, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of CLCPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on CLCPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
CLCPL continue to be 'CRISIL D Issuer Not Cooperating'.
Creative Looms and Craft Private Limited (CLCPL) was incorporated
in 1983 by Mr. Rishabh Singh and Mrs. Gaeta Singh. The company is
engaged in trading of handicrafts products and furniture. Company
operates through two retail outlets in New Delhi (one each at
Dwarka and Connaught Place).
DANIA ORO: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Dania Oro
Jewellery Private Limited continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Packing Credit 12.5 CRISIL D (Issuer Not
Cooperating)
Post Shipment
Credit 12.5 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term
Bank Loan Facility 17.31 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with Dania Oro
for obtaining information through letters and emails dated November
30, 2020 and May 31, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of Dania Oro, which restricts
CRISIL Ratings' ability to take a forward looking view on the
entity's credit quality. CRISIL Ratings believes that rating action
on Dania Oro is consistent with 'Assessing Information Adequacy
Risk'. Based on the last available information, the ratings on bank
facilities of Dania Oro continue to be 'CRISIL D/CRISIL D Issuer
Not Cooperating'.
Dania Oro was incorporated in 2006, promoted by Mr. Pramod Goenka
of Mumbai. The company exports diamond-studded gold jewellery to
the US and UK.
DELHI INT'L AIRPORT: Fitch Lowers LT IDR to 'BB-', Outlook Neg.
---------------------------------------------------------------
Fitch Ratings has downgraded Delhi International Airport Limited's
(DIAL) Long-Term Issuer Default Rating (IDR) and the rating on the
senior secured notes to 'BB-' from 'BB'. The Outlook is Negative.
Fitch has also downgraded Cliffton Limited's senior secured notes
to 'BB-', from 'BB', with a Negative Outlook.
Cliffton is an orphan financing vehicle incorporated in Mauritius
for a US dollar bond issuance. The rating on the notes issued by
Clifton reflects the consolidated credit profile of DIAL.
RATING RATIONALE
The downgrade reflects worse than Fitch expected traffic
performance due to further travel restrictions because of the
second coronavirus wave in India and consequently Fitch's
expectation of a lengthier traffic recovery to pre-pandemic levels
by end-2024, against end-2023 in Fitch's previous assumption.
Weaker earnings along with moderately flexible capex payments will
result in forecast average Fitch-adjusted net debt/EBITDAR,
remaining consistently above 20x over the medium term, under
Fitch's rating case.
The credit rating is supported by DIAL's strong business
fundamentals which will enable the group manage its liquidity
pressures in the short term, in Fitch's view. The airport, the
largest international airport in India, handled about 67 million
passengers in FY20 with transit passengers making up only about 20%
of total traffic. India's favourable demographics and local
consumers' propensity to fly will support the growth in the medium
to long term.
The Negative Outlook reflects the very limited rating headroom at
the current level. It also reflects the heightened risk of an
increase in liquidity pressure due to further travel restrictions
from additional waves of infections over the near term. In
addition, it reflects the risk of delays in receipt of phase III
revenue from a commercial property development being developed by
Bharti Realty at the airport. A timely receipt of this payment
would help ease DIAL's liquidity pressure and supporting
deleveraging.
Fitch has considered a waiver in the revenue share payment to
Airports Authority of India (AAI) for the financial year ending
March 2022 (FY22). Any unfavourable arbitration order requiring
immediate payment will put significant downward pressure on the
ratings, although the arbitration tribunal decision is only
expected by March 2022.
KEY RATING DRIVERS
Risk Assessment: Fitch assesses DIAL's revenue risk (volume) as
'Stronger', price risk as 'Midrange', infrastructure development
and renewal as 'Midrange' and debt structure as 'Midrange'.
PEER GROUP
GMR Hyderabad International Airport Limited (GHIAL, BB+/Negative)
is the closest peer for DIAL. The two-notch rating difference
reflects the adverse effect of the second virus wave on DIAL's
passenger traffic, revenue and liquidity position. It also reflects
the higher committed capex requirements at DIAL. Fitch estimates
DIAL's leverage will average about 21x over the next three to four
years, compared with 9.8x for GHIAL.
From a business profile perspective, Fitch expects both airports to
benefit from fast growth in the air passenger market in India in
the medium to long term. DIAL has a larger catchment area than
GHIAL, which serves Hyderabad, a vibrant but smaller city than
Delhi. DIAL's volume risk is therefore assessed as 'Stronger'
compared with 'Midrange' for GHIAL.
DIAL and GHIAL operate under the same economic regulatory
framework. GHIAL has some pending disputes with regulators
regarding tariff determination, while DIAL has implemented base
airport charges, which effectively removes downside risk to
aeronautical tariffs. The price risk is assessed as 'Midrange' for
both airports. The debt structure is assessed as 'Weaker' in GHIAL,
as the debt has limited credit protection and is exposed to
refinance risk. In the case of DIAL, the noteholders benefit from
an escrow account and refinance risk is mitigated with laddered
maturity.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Positive rating action is not expected in the near term;
-- The Outlook could be revised to Stable if Fitch sees sustained
recovery in DIAL's traffic and revenue due to the easing of
the pandemic, especially with the roll-out of effective
vaccines.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Any further deterioration in liquidity levels;
-- Extended period of significant traffic declines or ongoing
economic downturn that presents further challenges to the
airport or adverse business and regulatory outcomes affecting
revenue leading to slower deleveraging than Fitch's
expectation;
-- Further credit erosion of the major air carriers or payment
delinquencies.
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.
CREDIT UPDATE
Traffic Performance: The second wave of the virus has resulted in
weakened air traffic performance. DIAL's passenger traffic in May
2021 was equivalent to 19% of the May 2019 level, with domestic
traffic at 21% and international traffic at 12%. The number of
Covid-19 cases in India has been declining since the second week of
June. International travel under a "travel bubble" arrangement is
likely to commence in July 2021. The passenger traffic for FY21 was
22.6 million. Fitch has assumed FY22 passenger traffic at 41
million in Fitch's rating case.
Financial Performance: The pandemic has had a significant impact on
all business segments of DIAL:
-- Total revenue fell by 38% to INR24 billion in FY21 from INR39
billion in FY20;
-- EBITDA fell by 30% to INR69 billion (FY20: INR98 billion);
partly supported by the 12% decline in operating expenses,
excluding revenue share payment; almost 70% of the operating
expenses were fixed;
-- DIAL has a working-capital facility of INR2.3 billion (limit:
INR3.35 billion);
-- DIAL had a cash balance of INR50 billion as of March 2021.
This includes INR33 billion from a bond raised in March 2021
of which INR21 billion is repayment of a February 2022 bond
and INR12 billion for capex.
Annual Fee Payment: In December 2020, DIAL invoked the force
majeure clause to temporarily cease its revenue sharing with AAI in
the wake of the low traffic and revenue caused by the pandemic.
DIAL is required to pay 45.99% of its annual revenue as concession
fee to AAI.
A High Court order dated 5 January 2021 upheld the right of
non-payment of the annual fee to AAI, pending an arbitration
tribunal decision on the matter. At the tribunal's first hearing on
29 January 2021 it recognised the pandemic as a force majeure
event. The matter is to be resolved by March 2022 and until such
time, no annual fee is required to be paid. In the meantime, the
surplus cash arising from the non-payment can be used on the
airport's operations.
Capex Plan: The capex plan of INR91 billion has been approved by
Airports Economic Regulatory Authority of India, against a proposal
for INR97 billion in the tariff order for Phase 3 development. The
initial completion date in FY23 has been pushed to FY24 by DIAL on
account of the pandemic.
Liquidity: There is some near-term liquidity pressure, although the
near-term refinancing requirement for the USD288.5 million notes
due February 2022 is being met from the March 2021 bond proceeds.
Any adverse ruling with respect to the revenue share payment that
requires immediate payment or a delay in the Bharti Realty payment
will heighten the pressure on liquidity.
FINANCIAL ANALYSIS
Under Fitch's rating case, Fitch forecasts traffic to increase by
81% in FY22 (previously 118%), before gradually recovering by
end-2024. Fitch has considered the tariff at base aeronautical
charges (BAC) plus 10% for aeronautical revenue. The fourth control
period will commence from FY25. DIAL's financial profile may
benefit if the tariff approved by the regulator is higher than
Fitch's assumption of BAC + 10%. Duty free and other
non-aeronautical revenue is assumed to increase at a lower CAGR of
2% between FY20 and FY26 considering the uncertainty around
coronavirus-related measures.
For commercial property development revenue, Fitch has considered
revenue from Bharti Realty Phase III from 4QFY22 considering
delayed approval from AAI. These payments will also be staggered
over FY22 and FY23. Capex of INR58 billion between FY22 and FY26 is
considered in line with the committed expansion plans. Leverage -
as measured by adjusted net debt/EBITDAR - remains high under
Fitch's rating case and is estimated to average 21.3x between FY22
and FY26.
The coronavirus sensitivity case assumes the trough of the crisis
lingers for one more year, resulting in air traffic recovery to
pre-pandemic levels by end-2025. No waiver in the annual fee
payment to AAI is factored in. Fitch forecasts leverage of more
than 40x from FY22 to FY25 under this case.
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.
DIMESCO FOOTCARE: CRISIL Reaffirms B Rating on INR5.20cr Loan
-------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B/Stable' rating on the
long-term bank facilities of Dimesco Footcare India Private Limited
(DFPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit/
Overdraft facility 5.20 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 0.24 CRISIL B/Stable (Reaffirmed)
Working Capital
Term Loan 1.01 CRISIL B/Stable (Reaffirmed)
The ratings continue to reflect the company's below-average
financial risk profile and modest scale of operations in an
intensely competitive industry. These weaknesses are partially
offset by the extensive experience of the promoters in the footwear
industry and the established market position of the VKC brand.
Analytical Approach
Unsecured loans from promoters of INR6.92 crore, as of March 31,
2021, has been treated as quasi-equity as the same is expected to
be retained in the business.
Key Rating Drivers & Detailed Description
Weakness:
* Below-average financial risk profile: The company has a leveraged
capital structure with gearing and TOL/TNW of around 2 and 3 times
respectively, as of March 31, 2021. The net worth has been
decreasing on account of operational losses in the previous 3
fiscals. The debt protection metrics are also weak with interest
coverage of 0.4 times in FY2021.
* Modest scale of operations in an intensely competitive market:
Revenue in fiscal 2021 was modest at INR21.44 crore. The group is
exposed to intense competition from multinational brands such as
Puma and Reebok, and local brands such as Bata.
Strengths:
* Extensive experience of the promoters: DFPL is part of the VKC
group of companies, which was founded by Mr. VKC Mammed Koya with
his two brothers. The group is a leading manufacturer of
polyurethane (PU) and ethylene-vinyl acetate (EVA) footwear in
India, sold under the VKC brand. The promoters have nearly three
decades of experience in this industry.
* Established market position and extensive dealer network: The
company manufactures PU footwear and thermo-plastic rubber (TPR)
insole footwear, where the maximum retail price is INR200-500 per
pair and INR800-1,000 per pair, respectively. The footwear is sold
under various VKC brands, which are well-known and have healthy
recall, primarily among the middle-class segment. The company is
expected to continue to benefit from its established market
position over the medium term.
Liquidity: Stretched
The company's bank limits was highly utilized at over 90% in the
twelve months through April 2021, with negative accruals.
Repayments of around INR0.3 crore each in FY2022 and FY2023 are
expected to be met by need-based lending support from promoters.
Low net worth limits the company's financial flexibility, and
restricts the financial cushion available to the company in case of
any adverse conditions or downturn in the business.
Outlook: Stable
CRISIL Ratings believes DFPL will continue to benefit from the
extensive experience of its promoters in the footwear segment and
the established market position of the VKC brand.
Rating Sensitivity Factors
Upward factors
* Increase in revenue by over 30%, leading to positive cash
accruals
* Improvement in the working capital cycle with GCA days reducing
to below 180 days
Downward factors
* Any decline in revenue, leading to further operating losses
* Stretch in the working capital cycle leading to deterioration of
the company's liquidity and overall financial risk profile
DFPL, established in 2005, is part of Division I the VKC group. It
manufactures footwear under various brand names, including VKC
Pride, VKC Stile, and VKC Trendz.
The VKC group, set up in 1984 by Mr. V K C Mammed Koya,
manufactures footwear under the VKC brand. The group is divided
into two divisions – Division I and Division II for management
ease and effective control. While both divisions market products
under the VKC brand, the treasury and key operations are managed
individually. Division I is headed by Mr. V Noushad and Division II
by Mr. Abdul Razaak.
DURGA PARAMESHWARI: CRISIL Reaffirms B Rating on INR10cr Loans
--------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B/Stable' rating on the
long-term bank facilities of Shree Durga Parameshwari Motors Pvt
Ltd (SDPMPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7.5 CRISIL B/Stable (Reaffirmed)
Long Term Loan 1.5 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 1.0 CRISIL B/Stable (Reaffirmed)
The rating continues to reflect SDPMPL's below-average financial
risk profile and exposure to economic cyclicality and intense
competition in the industry. These weaknesses are partially offset
by the extensive experience of the promoters in the automobile
dealership industry.
Analytical approach
Unsecured loans estimated at INR1.5 crore as of March 31, 2021
extended by the promoters have been treated as debt as these loans
may not be retained in the business over the medium term.
Key rating drivers & detailed description
Weaknesses
* Below-average financial risk profile: Financial risk profile is
likely to remain constrained by sizeable working capital debt and
vehicle loans. Networth was low at INR2.40 crore as of March 31,
2021, while gearing was high at 5.28 times.
* Susceptibility to economic cyclicality and intense competition:
Despite being a leading authorized dealer of Honda Motorcycles and
Scooters India Pvt Ltd (HMSI) in Hyderabad, SDPMPL has to compete
with other two-wheeler manufacturers, particularly in the premium
motorcycle segment. The intense competitive pressure may continue
to constrain scalability, pricing power and profitability.
Strength
* Extensive experience of promoters: The key promoter, Mr. Belman
Purushottam Raghavendra Rao, hails from a well-known hotelier
family that promoted Hotel Dwaraka, one of the oldest hotels in
Hyderabad. Benefits from the promoters' expertise and their strong
understanding of local market dynamics should continue to aid the
business.
Liquidity: Stretched
Cash accrual is projected at INR75-100 lakh per annum over the
medium term, insufficient to meet the yearly maturing debt of
INR100-128 lakh. Bank limit utilisation was moderate, at an average
of 88.44% during the 14 months through May 2021. Current ratio was
1.2 times on March 31, 2021. Liquidity will remain partially
supported by the funds (equity and unsecured loans) extended by the
promoters to meet working capital requirement and debt repayment
obligation.
Outlook: Stable
SDPMPL will continue to benefit from the healthy entrepreneurial
experience of its promoters.
Rating sensitivity factors
Upward factors
* Revenue increasing by 20% per annum and operating margin steady
at over 4%
* Significant improvement in the working capital cycle
Downward factors
* Steep decline in revenue and profitability, leading to cash
accrual below INR60 lakh
* Any large, debt-funded capital expenditure
SDPMPL was incorporated in 2012 by Mr. Belman Purushottam
Raghavendra Rao and his family members. The company is an
authorised dealer for two-wheelers of HMSI in Hyderabad.
DYNAMIX CHAINS: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Dynamix
Chains Manufacturing Private Limited continue to be 'CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Funded Interest 4.97 CRISIL D (Issuer Not
Term Loan Cooperating)
Packing Credit 5 CRISIL D (Issuer Not
Cooperating)
Post Shipment 9 CRISIL D (Issuer Not
Credit Cooperating)
Proposed Long Term 35.15 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 2.84 CRISIL D (Issuer Not
Cooperating)
Working Capital 15.89 CRISIL D (Issuer Not
Demand Loan Cooperating)
CRISIL Ratings has been consistently following up with Dynamix for
obtaining information through letters and emails dated November 30,
2020 and May 31, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of Dynamix, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
Dynamix is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of Dynamix continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Dynamix, established in October 2007, is promoted by Mr. Pramod
Goenka of Mumbai. It manufactures specialised chains and pendants,
which are exported to the US.
EXTOL INDUSTRIES: CRISIL Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Extol
Industries Limited (EIL) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Working Capital 12.5 CRISIL D (Issuer Not
Facility Cooperating)
CRISIL Ratings has been consistently following up with EIL for
obtaining information through letters and emails dated November 30,
2020 and May 31, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of EIL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on EIL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
EIL continue to be 'CRISIL D Issuer Not Cooperating'.
Incorporated in 1997, EIL is owned and managed by Mr. Gyanendra
Bhatnagar and his family members. EIL operates wind turbine
generator facility in Raisen (Madhya Pradesh). The facility started
operations in September 2014.
GAUTAMI CHEMICALS: CRISIL Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Gautami
Chemicals and Pesticides Private Limited (GCP) continues to be
'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with GCP for
obtaining information through letters and emails dated November 21,
2020 and May 31, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of GCP, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on GCP
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
GCP continue to be 'CRISIL D Issuer Not Cooperating'.
Incorporated in 1996, GCP is engaged in manufacturing and sale of
pesticides. The Rajahmundry-based company is promoted by Mr.
Goluguri Bapi Raju.
ISR INFRA: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of ISR Infra
Private Limited (IIPL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2 CRISIL D (Issuer Not
Cooperating)
Cash Credit 2.17 CRISIL D (Issuer Not
Cooperating)
Open Cash Credit 5 CRISIL D (Issuer Not
Cooperating)
Working Capital 0.83 CRISIL D (Issuer Not
Term Loan Cooperating)
CRISIL Ratings has been consistently following up with IIPL for
obtaining information through letters and emails dated November 21,
2020 and May 31, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of IIPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on IIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
IIPL continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Established in 2010, IIPL undertakes civil projects such as
construction of roads and bridges. Visakhapatnam, Andhra
Pradesh-based IIPL is promoted by Mr. Srinivas Rao and family.
JAHANVI ISPAT: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Jahanvi Ispat
Private Limited (JIPL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 11 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with JIPL for
obtaining information through letters and emails dated November 21,
2020 and May 31, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of JIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on JIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
JIPL continue to be 'CRISIL D Issuer Not Cooperating'.
JIPL, incorporated in 2009, is promoted by Mr. Pramod Gupta. The
company manufactures thermo-mechanicallytreated steel bars from
mild-steel billets and ingots. The company's manufacturing facility
is at Mandideep, Madhya Pradesh.
LEADING HOTELS: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Leading Hotels Limited
Registered office:
131, First Floor
Ansal Chambers-II
Bhikaiji Cama Place
New Delhi 110066
Corporate office:
117, Gera's Imperium Grand
Patto Plaza, Panaji 403001
Insolvency Commencement Date: June 25, 2021
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: December 22, 2021
(180 days from commencement)
Insolvency professional: Minni Katariya
Interim Resolution
Professional: Minni Katariya
D-101, Bahawalpur Apartments
Plot-30, Sector-6
Dwarka, New Delhi 110075
E-mail: minnik1943@hotmail.com
Last date for
submission of claims: July 13, 2021
MUTHULAXMI SPINNING: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Muthulaxmi
Spinning Mills Private Limited (MSMPL) continue to be 'CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.5 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 2 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with MSMPL for
obtaining information through letters and emails dated November 21,
2020 and May 31, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MSMPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MSMPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MSMPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Incorporated in 1996 by Mr. Shanmugavel, MSMPL manufactures cotton
yarn of 20s to 40s counts.
PARAMOUNT MINERALS: CRISIL Cuts Rating on INR40.22cr Loan to D
--------------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
Paramount Minerals and Chemicals Ltd (PMCL) to 'CRISIL D/CRISIL D'
from 'CRISIL BB+/Negative/CRISIL A4+'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 3 CRISIL D (Downgraded from
'CRISIL A4+')
Bill Discounting 15 CRISIL D (Downgraded from
under Letter 'CRISIL A4+')
of Credit
Cash Credit 20.25 CRISIL D (Downgraded from
'CRISIL BB+/Negative')
Letter of Credit 40.22 CRISIL D (Downgraded from
'CRISIL A4+')
Long Term Loan 7.53 CRISIL D (Downgraded from
'CRISIL BB+/Negative')
Packing Credit in 14 CRISIL D (Downgraded from
Foreign Currency 'CRISIL A4+')
Proposed Long Term 25 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL BB+/Negative')
The downgrade reflect instances of overdues of above 30 days in
packing credit facilities availed by the company. It currently has
outstanding overdues in packing credit since April 07th, 2021 and
cumulative overdues amounts to around INR7.8 crores as on date.
The ratings continue to reflect weak business performance, below
average financial risk profile and poor liquidity. These
weaknesses are partially offset by company's longstanding presence
in the speciality chemicals business.
Key Rating Drivers & Detailed Description
Weaknesses:
* Weak business performance: Revenue was modest at estimated
INR96.5 crore in fiscal 2020 and likely to further moderate in
fiscal 2021 with material losses on account of pandemic related
disruptions and closure of plant in March 2021 due to collapse of
its storage tank disrupting operations. Revenue and profitability
is expected remain constrained over the medium term.
* Below average financial risk profile: Networth was estimated at
INR24 crore as on March 31, 2020 (Rs 41.1 crore as on March 31
2019), and is likely to further moderate over medium term due to
accumulated losses. The TOL/ANW ratio was estimated to be 3.8 times
as on March 31 2020, and likely to further weaken on account
erosion in networth. Debt protection metrics are weak due to cash
losses and likely to remain so over the medium term.
Strength:
* Longstanding presence in speciality chemicals business: Company
has a track record of over 40 years in manufacturing speciality
chemicals and OBA, backed by technically qualified and experienced
promoters. The experience of its promoters and established
relationship with customers and suppliers are likely to support
business risk profile over the medium term.
Liquidity: Poor
The pandemic related disruption and collapse of its storage tank
had materially impacted its operations, leading to significant cash
losses in fiscal 2021 against repayment obligations of around
INR2.6 crores. Cash losses are expected to continue in fiscal 2022
against debt obligations of around INR3-4 crores. The bank limits
remains fully utilized against low drawing power and there are no
material cash and bank balances. There is past track record support
from promoters; however support going forward shall remain a key
monetorable.
Rating Sensitivity factors
Upward factors:
* Regularisation of all the bank facilities and track record of
satisfactory operations without irregularities, at least for a
period of 3 months
* Improvement net cash accrual and liquidity position
Incorporated in 1975 and promoted by the Poddar and Sanghai groups,
PMCL manufactures OBAs and speciality chemicals used in the
textiles, paper, and detergent industries. Products are sold under
the Parawhite and Dolomass brands. Manufacturing facility is in
Ambernath, Maharashtra.
R. K. NATURAL: CRISIL Reaffirms B+ Rating on INR9.0cr Loans
-----------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on the
long-term bank facilities of R. K. Natural Fibre Private Limited
(RK).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.8 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 2.2 CRISIL B+/Stable (Reaffirmed)
The rating continues to reflect the company's small scale of
operations amid intense competition and average financial risk
profile. These weaknesses are partially offset by the extensive
experience of the promoters in the cotton industry and the
proximity of the ginning plant to the cotton-growing region in
Gujarat.
Key Rating Drivers & Detailed Description
Weakness:
* Small scale of operations amid intense competition: Intense
competition and limited capacity constrain scalability, as
reflected in estimated revenue of INR23 crore in fiscal 2021, and
pricing flexibility. Operating margin was low at 2-4.5% in fiscal
2021.
* Average financial risk profile: The financial risk profile is
constrained by small networth, estimated at INR1.7 crore, and high
adjusted gearing and total outside liabilities to adjusted networth
ratio, estimated at 3.35 and 3.55 times, respectively, as of March
31, 2021, because of limited accretion to reserve. Debt protection
metrics were weak, as indicated by estimated interest coverage
ratio of 1.32 times for fiscal 2021.
Strengths:
* Extensive experience of the promoters: The promoters' experience
of 10 years in the textile business, strong understanding of local
market dynamics and healthy relationships with customers and
suppliers will continue to support the business.
* Proximity to the cotton-growing belt: The ginning unit in Bodeli
is close to Gujarat's cotton-growing region, which provides easy
access to raw material and reduces transportation cost.
Liquidity: Stretched
Because of large working capital requirement, liquidity will remain
stretched over the medium term. Bank limit utilization was high at
96% on average during the 10 months through January 2021. The
company does not have any sizeable term loan.
Outlook Stable
CRISIL Ratings believes RK will continue to benefit from the
extensive experience of the promoters.
Rating Sensitivity factors
Upward factors
* Improvement in capital structure
* Increase in revenue and profitability, leading to cash accrual of
more than INR0.5 crore
Downward factors
* Decline in revenue or profitability
* Increase in total outside liabilities to tangible networth ratio
above 7 times
Based in Bodeli, RK is owned and managed by the Patel family
members. The company gins and presses raw cotton to make cotton
bales, wash oil and de-oiled cakes.
RAYBAN FEEDS: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Rayban Feeds
and Hatcheries Private Limited (RFHPL) continue to be 'CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 11 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 2 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with RFHPL for
obtaining information through letters and emails dated November 21,
2020 and May 31, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of RFHPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RFHPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RFHPL continue to be 'CRISIL D Issuer Not Cooperating'.
Incorporated in 2011, RFHPL is engaged in poultry farming. The
company was incorporated as a joint venture between the Elahi and
Vadivel families, based in Hapur, Uttar Pradesh,-and Coimbatore,
Tamil Nadu, respectively. It has a registered office in Coimbatore
while its poultry farming unit is in Hapur; the unit commenced
operations in fiscal 2014.
SPRAY ALCANS: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Spray Alcans
(SA) continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.5 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 0.1 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 5.2 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SA for
obtaining information through letters and emails dated November 21,
2020 and May 31, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SA, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SA is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of SA
continue to be 'CRISIL D Issuer Not Cooperating'.
Set up in March 2015 as a partnership firm by Ms. Ashu Goel and her
son, Mr. Aayush Goel, SA purchased an existing aluminium can
manufacturing unit in Dehradun in November 2015 and commenced
operations from February 2016.
UNIQUE MALLS: CRISIL Lowers Rating on INR169.5cr LT Loan to C
-------------------------------------------------------------
CRISIL Ratings has removed its rating on the bank facilities of
Unique Malls Private Limited (UMPL) from 'Rating Watch with
Developing Implications' and downgraded it to 'CRISIL C' from
'CRISIL B-'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 18 CRISIL C (Downgraded from
'CRISIL B-'; Removed from
'Rating Watch with
Developing Implications')
Proposed Long Term 169.5 CRISIL C (Downgraded from
Bank Loan Facility 'CRISIL B-'; Removed from
'Rating Watch with
Developing Implications')
The rating downgrade reflects weak liquidity position of the
company. The company has not received any rental income since March
2020 and is not expected to receive the same till February 2022.
Consequently, cash accrual for the fiscal may not be sufficient to
meet debt obligation falling due in March 2022. The company is
expected to be dependent on group support to manage repayment due
in March 2022. However, the credit risk profile of the Future group
has also weakened significantly due to the pandemic, further
affecting the credit risk profile of the company.
The rating was placed on watch on October 13, 2020, following the
company's application for restructuring of its term loans under the
Reserve Bank of India's (RBI's) guidelines issued on August 6,
2020, and the 'Resolution Framework for COVID-19 related stress'.
Subsequently, the one-time restructuring (OTR) plan was implemented
by lenders on May 21, 2021, wherein principal repayment of the
existing term loan has been deferred to March 2022. Interest due
from March 2020 to February 2022 will be converted into a funded
interest term loan (FITL) with lump sum repayment in March 2022.
The resolution of watch is in line with CRISIL Ratings' approach to
default recognition for entities applying for restructuring under
the RBI's resolution framework published in the criteria alert
titled 'CRISIL's approach to Covid-19-related restructuring'.
The rating continues to reflect the weak credit risk profiles of
tenants, which are also group companies, and the average financial
risk profile and capital structure of the company. These weaknesses
are partially offset by the extensive track record of the promoters
in managing malls, need-based financial support from group
companies and the personal guarantee of promoters for loans.
Analytical Approach
CRISIL Ratings has factored in financial and operational support
received from the Future group on an ongoing basis, in its
assessment of UMPL's standalone profile. CRISIL Ratings has taken a
standalone view on UMPL as there is no financial fungibility
between UMPL and other Future group companies.
Unsecured loan of INR317 crore as of March 31, 2020, from the
promoters has been treated as 75% equity and 25% debt. This is
because the loan is interest free and will be retained in the
company until the bank loan is repaid. The promoters have a track
record of non-withdrawal of funds. The treatment is in line with
the treatment of unsecured loans from promoters in the criteria,
CRISIL's approach to financial ratios.
Key Rating Drivers & Detailed Description
Weaknesses:
* Weakening of credit risk profiles of tenants: UMPL has leased the
bulk of its leasable area to Future group companies. With the
weakening of the credit risk profiles of the tenants due to the
pandemic, the company has not received any rental income from March
2020 and has provided rent waiver to tenants until February 2022;
this has led to instability and mismatch in cash flow. The company
had availed the six-month moratorium provided by the RBI from March
2020 and then opted for OTR to tide over the mismatch. The OTR plan
has now been implemented with debt servicing due in March 2022. The
company's ability to recover the overdue rental income and service
debt obligations in a timely manner will remain a key rating
sensitivity factor.
* Average financial risk profile and capital structure: Subdued
debt protection metrics, weak capital structure, ballooning
repayments and unpredictability of cash flow constrain the
financial risk profile. As of March 31, 2020, secured bank loan
comprised INR16.4 crore of total debt, with the remaining being
unsecured loans from the promoters. Furthermore, the company does
not plan to contract any incremental external debt and intends to
reduce overall debt.
* Susceptibility to vacancy and volatility in interest rate: Rental
income is a significant source of revenue for UMPL, leading to
exposure to vacancy risks. However, as majority of the tenants are
group companies, this risk is mitigated. The interest rate is
floating, exposing the company to risks associated with volatility
in interest rate.
Strengths:
* Extensive experience of the promoters and their financial
support: The promoters have been in the retail and mall management
businesses for over 25 years through the Future group, which has
retail space of 160 lakh sq ft across 95 cities. The group has been
supporting UMPL's operations since it was acquired by Mr. Kishore
Biyani in 2006. Additionally, UMPL's bank loans carry a corporate
guarantee from its parent, Future Market Networks Ltd (FMNL), as
well as personal guarantees from its promoters and members of the
Biyani family. FMNL has extended timely financial support to cover
UMPL's debt obligation and capital expenditure; the promoters
infused around INR100 crore in fiscal 2020.
Liquidity: Poor
Liquidity is expected to remain constrained over the medium term.
The company has not received any rental income since the lockdown
in March 2020 and does not expect to receive any rental income till
February 2022 due to rent waiver given to the tenants. Even though
malls have reopened on August 5, 2020, footfall is low. The company
does not have a debt service reserve account. The promoter group's
financial flexibility has also weakened, thereby limiting their
ability to support the company, in case of any exigency.
Rating Sensitivity factors
Upward factors
* Stabilisation of operations and collection of rentals before
February 2022, leading to positive earnings before interest, taxes,
depreciation and amortization (EBITDA) for fiscal 2022 and growth
of 5% thereafter
* Improvement in business risk profile with improvement in
profitability and timely financial support from promoters or group
companies
Downward factors
* More than 10% impact on the expected rental cash flow
* Delayed or lower-than-expected financial support from promoters
or group companies
UMPL was incorporated in August 2005 by the Future group to focus
on mall management activities, management and development of space
for out-of-home media, and to support the group's retail
businesses. The company is held entirely by the Future group
through FMNL and nine other entities. FMNL, through its 37.65%
shareholding, has de-facto control of UMPL.
VEGGIECRAFT FOOD: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Veggiecraft
Food Private Limited (VFPL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 7.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with VFPL for
obtaining information through letters and emails dated November 30,
2020 and May 31, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of VFPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VFPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
VFPL continue to be 'CRISIL D Issuer Not Cooperating'.
VFPL, promoted by Mr. Chander Prakash Chabra, Ms Karuna Rawat, Mr.
Param Dhanot, and Mr. Kunal Malik in 2014, harvests, processes,
stores, packs, and cans mushrooms, and has a dairy plant in
Mathura, Uttar Pradesh.
YASH JEWELLERY: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Yash
Jewellery Private Limited (YJPL) continue to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Corporate Loan 119.30 CRISIL D (Issuer Not
Cooperating)
Funded Interest 4.93 CRISIL D (Issuer Not
Term Loan Cooperating)
Packing Credit 20 CRISIL D (Issuer Not
Cooperating)
Post Shipment 30 CRISIL D (Issuer Not
Credit Cooperating)
Working Capital 41.77 CRISIL D (Issuer Not
Demand Loan Cooperating)
CRISIL Ratings has been consistently following up with YJPL for
obtaining information through letters and emails dated November 30,
2020 and May 31, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of YJPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on YJPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
YJPL continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
YJPL, incorporated in 2006, is promoted by the Mumbai-based Mr.
Pramod Goenka. The company exports diamond-studded gold jewelry.
=================
I N D O N E S I A
=================
ALAM SUTERA: Moody's Affirms Caa1 CFR, Alters Outlook to Stable
---------------------------------------------------------------
Moody's Investors Service has affirmed the Caa1 corporate family
rating of Alam Sutera Realty Tbk (P.T.).
Moody's has also affirmed the Caa1 senior secured rating of the
2024 notes and 2025 notes issued by Alam Sutera. The notes are
guaranteed by most of Alam Sutera's subsidiaries and secured by a
mortgage over the Mall@Alam Sutera land lot and a commercial land
lot.
At the same time, Moody's has affirmed the Caa2 backed senior
unsecured ratings of the 2022 notes issued by Alam Synergy Pte.
Ltd., a wholly-owned subsidiary of Alam Sutera. The notes are
guaranteed by Alam Sutera and most of its subsidiaries.
The outlook on all ratings has been changed to stable from
negative.
"The change in outlook to stable reflects our expectation that Alam
Sutera will have adequate liquidity to repay its debt maturing in
2021 and 2022, helped by proceeds from a new bank loan and the
expiry of its call-spread option facilities in April 2022," says
Jacintha Poh, a Moody's Vice President and Senior Credit Officer.
"Alam Sutera's Caa1 rating reflects its unsustainable capital
structure, as indicated by its high leverage and reliance on
external funding to meet refinancing needs," says Poh.
RATINGS RATIONALE
On June 30, 2021, Alam Sutera announced that it will buy back
$22.47 million of its 2022 notes following the completion of its
tender offer [1].
Alam Sutera's liquidity will be adequate in 2021 and 2022. As of
March 31, 2021, the company held cash and cash equivalents of
IDR997 billion. Together with the proceeds from its new IDR500
billion loan from Bank Central Asia Tbk (P.T.) (BCA, Baa2 stable)
secured in April 2021, and estimated proceeds of around IDR350
billion from the expiry of its call-spread option facilities in
April 2022, Alam Sutera will have sufficient liquidity to cover
operating cash outflows of around IDR50 billion, debt maturity of
around IDR1.4 trillion, and capital spending of around IDR250
billion.
In the first quarter of 2021, Alam Sutera achieved IDR589 billion
of marketing sales. This level of marketing sales is on track to
meet Moody's full-year expectation of around IDR2.3 trillion, but
behind the company's target of IDR3.2 trillion.
Despite operational disruptions caused by the pandemic, Alam Sutera
achieved IDR2.6 trillion of core marketing sales in 2020, higher
than IDR2.2 trillion in 2019. The company's new projects at both of
its townships, which targeted buyers across the price spectrum,
have supported the increase in marketing sales.
However, Moody's expects Alam Sutera's earnings will not recover to
pre-pandemic levels because of a reduction in land sales, which
have higher margins. Moody's expects the company to generate gross
profit margins of around 50% in 2021 and 2022, compared with 65% in
2019.
Consequently, Alam Sutera's financial metrics will remain weak in
2021 and 2022, albeit improving from 2020. Leverage, as measured by
debt/homebuilding EBITDA, will be around 9.5x in both years. EBIT
interest coverage will be around 1.4x in 2021 and weaken to around
1.1x in 2022 because of the yearly step-up in coupon rates on the
company's 2024 and 2025 notes. For the 12 months that ended March
31, 2021, Alam Sutera had leverage of 31.5x and EBIT interest
coverage of 0.2x.
Alam Sutera's high leverage and reliance on external funding to
meet refinancing needs pointed to an unsustainable capital
structure.
In terms of environmental, social and governance (ESG) factors,
Moody's has considered the governance risk stemming from Alam
Sutera's weak financial management, which led to an exchange offer
for its US dollar bonds in 2020. Governance considerations also
arise from Alam Sutera's concentrated ownership by its promoter and
its five-member board of commissioners, of which only two members
are independent. Nonetheless, the company is run by experienced
professionals and has a track record of reducing capital spending
to preserve liquidity.
The 2024 and 2025 senior secured notes, which account for the
largest proportion of debt in Alam Sutera's capital structure, are
rated in line with the company's Caa1 corporate family rating,
while the 2022 senior unsecured notes are rated one notch lower at
Caa2 to reflect legal subordination risk.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Alam Sutera's ratings could be upgraded if the company continues to
execute its business plans and improves it liquidity, such that its
Moody's adjusted homebuilding EBIT/interest expense stays above
1.5x and it has sufficient cash sources to address debt maturities
over the next 12-18 months.
The ratings could be downgraded if there is a likelihood that Alam
Sutera is unable to address its debt maturity over the next 12-18
months.
The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in January 2018.
Established in November 1993 and listed on the Indonesian Stock
Exchange in December 2007, Alam Sutera Realty Tbk (P.T.) is an
integrated property developer in Indonesia that focuses on the sale
of land lots in accordance with township planning requirements, as
well as property development in residential and commercial segments
in Indonesia. As of March 31, 2021, the family of The Ning King
owned around 40% of the company.
ALAM SUTERA: S&P Raises ICR to 'CCC+' on Reduced Refinancing Risks
------------------------------------------------------------------
On July 1, 2021, S&P Global Ratings raised its long-term issuer
credit rating on PT Alam Sutera Realty Tbk. to 'CCC+' from 'CCC'.
S&P also raised its long-term issue rating on the company's
guaranteed senior unsecured notes due in April 2022 to 'CCC+' from
'CCC'.
The negative outlook reflects the risk that Alam Sutera's liquidity
could erode faster than S&P expects over the next 12 months, given
the evolving COVID situation in Indonesia could hurt consumer
sentiment and the company's sales recovery.
Improved consumer sentiment and low mortgage rates will underpin a
modest improvement in Alam Sutera's marketing sales in 2021. S&P
estimates the company's marketing sales will be Indonesian rupiah
(IDR) 2.8 trillion-IDR2.9 trillion this year, driven by supportive
regulatory measures and end-user demand. Alam Sutera will focus on
the landed residential segment in the Suvarna Sutera and Alam
Sutera townships, including the Elevee apartment and shophouses. We
have not factored in any land sales to China Fortune Land
Development Co. Ltd. (CFLD). As such, high-margin land sales will
account for no more than 15% of Alam Sutera's annual marketing
sales, well below the historical level of 30%-40%.
Alam Sutera's liquidity should remain sufficient for the next 12
months, thanks to its new domestic bank loan and improved marketing
sales. The additional IDR500 billion bank loan secured in April has
boosted the company's liquidity, while continued recovery in
marketing sales will support steady cash collection over 2021 and
2022. S&P expects Alam Sutera to generate positive operating cash
flows of IDR110 billion-IDR140 billion in 2021 and IDR340
billion-IDR370 billion in 2022, compared with negative operating
cash flows in 2020. Future cash flow generation will remain modest
relative to levels in 2017-2019, given the lack of major land
sales. The company will likely continue to manage its liquidity by
balancing cash collection with construction costs and discretionary
capital expenditure. Alam Sutera demonstrated its willingness to
preserve liquidity by cutting back on discretionary spending in
2020.
Alam Sutera's liquidity could be weaker than our forecast if
current COVID-19 emergency measures and lockdowns are extended, as
this could erode consumer confidence and hamper showroom
visitations.
Alam Sutera's near-term refinancing risk has been alleviated
following the redemption of its April 2021 notes and partial tender
of the April 2022 notes. The company has repaid the US$16 million
notes due in April 2021. On June 30, 2021, it tendered almost half
of its outstanding US$46.6 million notes due in April 2022. S&P
believes Alam Sutera will repay the remaining US$24.1 million of
outstanding notes in April 2022 through a mixture of cash on hand
and hedging benefit payouts when the hedging contracts associated
with the 2022 notes are closed out. The unrealized hedging benefit
gain was about IDR330 billion as of end-2020, based on the
company's audited financial statements and an Indonesian rupiah to
U.S. dollar exchange rate of 14,100.
S&P said, "We view the recent tender offer as opportunistic rather
than a distressed exchange given that the final tender price of
98.5% is close to par. The size of the tender offer is also
immaterial relative to the company's total offshore debt. We
believe Alam Sutera will have sufficient cash reserve to fund the
tender offer, which was conducted several quarters ahead of
maturity."
The rating on Alam Sutera remains constrained by the company's
sizable debt and interest obligations, which could erode its cash
holdings beyond the next 12 months. The gradual step-up in
debt-servicing obligations will likely strain Alam Sutera's
liquidity over time. Following the exchange offer and restructuring
in 2020, the company's capital structure comprised amortizing U.S.
dollar bonds and bank loans, which we estimate will result in
maturities of about IDR753 billion in 2021 and IDR655 billion in
2022. In addition, Alam Sutera has sizable interest payments with a
step-up in coupon payment of 2%-3% annually. This would further
reduce operating cash flow by IDR100 billion-IDR130 billion in
2022.
S&P said, "In our opinion, Alam Sutera's discretionary cash flows
in 2021 and 2022 will be insufficient to cover its heavy
debt-servicing obligations. We project the company's cash balance
will fall to IDR280 billion-IDR320 billion by end-June 2022, from
IDR770 billion at end-March 2021, unless it secures additional debt
funding to shore up its cash level.
"The negative outlook reflects the risk that Alam Sutera's
liquidity could erode faster than we expect over the next 12
months, given the evolving COVID situation in Indonesia could hurt
consumer sentiment and the company's sales recovery.
"We could lower the ratings if Alam Sutera shows signs of faster
cash burn than we anticipate over the next 12 months. This could
stem from weak cash collection, or capital expenditure or
construction spending that exceeds our expectations.
"We will lower the ratings to 'SD' if Alam Sutera undertakes
capital market transactions related to its residual 2022 notes that
we assess as a distressed exchange, such as through capital market
purchases materially below par.
"We could revise the outlook to stable if Alam Sutera's liquidity
buffer improves beyond July 2022. This could happen if the company
secures additional funding or operating cash flow improves such
that it can cover its substantial debt-servicing obligations."
=========
J A P A N
=========
CITIZEN WATCH: Egan-Jones Hikes Senior Unsecured Ratings to BB+
---------------------------------------------------------------
Egan-Jones Ratings Company, on June 16, 2021, upgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by Citizen Watch Co., Ltd. to BB+ from BBB-.
Headquartered in Nishitokyo, Tokyo, Japan, Citizen Watch Co., Ltd.
produces and sells watches and machine tools.
FURUKAWA ELECTRIC: Egan-Jones Keeps BB+ Senior Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company, on June 14, 2021, maintained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by Furukawa Electric Co., Ltd.
Headquartered in Chiyoda City, Tokyo, Japan, Furukawa Electric Co.,
Ltd. manufactures wires, cables, and metal products.
MAZDA MOTOR: Egan-Jones Keeps BB Senior Unsecured Ratings
---------------------------------------------------------
Egan-Jones Ratings Company, on June 16, 2021, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by Mazda Motor Corporation.
Headquartered in Fuchu, Hiroshima, Japan, Mazda Motor Corporation
manufactures and sells automobiles, trucks, auto parts, and its
accessories.
SOFTBANK GROUP: Egan-Jones Keeps B+ Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company, on June 14, 2021, maintained its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by SoftBank Group Corp.
Headquartered in Minato City, Tokyo, Japan, SoftBank Group Corp. is
a Japanese multinational conglomerate holding company headquartered
in Minato, Tokyo.
UNITIKA LIMITED: Egan-Jones Keeps CCC Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company, on June 15, 2021, maintained its 'CCC'
foreign currency and local currency senior unsecured ratings on
debt issued by UNITIKA LTD. EJR also maintained its 'C' rating on
commercial paper issued by the Company.
Headquartered in Osaka, Osaka, Japan, UNITIKA LTD manufactures and
sells synthetic fibers and textile products used as apparel and
industrial materials.
=====================
N E W Z E A L A N D
=====================
THE REDHEADS: Chapel Bar Placed in Liquidation
----------------------------------------------
Stuff.co.nz reports that a business that was originally behind
Ponsonby Road's Chapel Bar is in liquidation.
Stuff relates that the New Zealand government newspaper the Gazette
said The Redheads, trading as Chapel Bar, had liquidators appointed
on June 28 following a special resolution by its shareholder.
According to Stuff, Ponsonby Road Holdings director and shareholder
Craig Anderson said it purchased Chapel Bar in March 2020 and the
business was still trading.
The Redheads was formed in 2005, Stuff discloses citing Companies
Office records. Chapel Bar opened that same year.
=================
S I N G A P O R E
=================
CMR GOLD: Mann & Associates Appointed as Provisional Liquidators
----------------------------------------------------------------
Farooq Ahmad Mann of M/s Mann & Associates PAC on June 25, 2021,
was appointed as provisional liquidator of CMR Gold & Jewellers (S)
Pte. Ltd.
The liquidator may be reached at:
Farooq Ahmad Mann
M/s Mann & Associates PAC
3 Shenton Way
#03-06C Shenton House
Singapore 068805
DOUBLE ACE: Creditors' Meeting Set for July 14
----------------------------------------------
Double Ace Trading Company (Private) Limited, which is in
liquidation, will hold a meeting for its creditors on July 14,
2021, at 10:00 a.m., at.
Agenda of the meeting includes:
a. to update the creditors on the status of the liquidation of
the Company;
b. to approve the Liquidators' second interim fees and
disbursements;
c. to approve the Liquidators' solicitors' fees which will be
subject to taxation;
d. deliberate on the courses of action in respect of the
Company's receivables; and
e. any other business.
The company's liquidators are:
Leow Quek Shiong
Gary Loh Weng Fatt
c/o BDO Advisory Pte. Ltd.
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
EAGLE HOSPITALITY: Monarch Acquires 10 Hotels for $360 Million
--------------------------------------------------------------
Monarch Alternative Capital LP, a leading investment firm with
approximately $9 billion of assets under management, on June 25
disclosed that it has purchased ten full-service hospitality real
estate assets located in four states in the United States for a
total consideration of $360 million. The properties were sold by
Eagle Hospitality Real Estate Investment Trust as part of its
bankruptcy process.
The Eagle Hospitality transaction highlights Monarch's ability to
leverage its experience in financial restructurings and complex
processes to invest in strong assets poised to benefit from a
market recovery in leisure and business travel. Monarch initially
assisted Eagle Hospitality during the bankruptcy process in early
2021 by providing financing in the form of a $100 million
Debtor-in-Possession loan to help fund ongoing expenses related to
the hotels and the bankruptcy case. In March, Monarch was also
named as the stalking horse bidder for the fifteen properties Eagle
looked to sell, providing a floor bid for the Section 363 sale
process. Following the auction, Monarch emerged as the ultimate
buyer for ten properties.
The portfolio consists of ten full-service hotels and resorts
located in California, Colorado, Connecticut, and Florida. The
majority of the properties are located in California and Florida,
with a focus on proximity to drive-to, leisure destinations
including Disneyland and Disney World and accessibility to highly
trafficked convention centers. Monarch believes that the hotel
properties will experience operating performance improvement as a
result of the ongoing recovery of both leisure and business travel.
In addition, continued investment by Monarch and improved
management of the properties aims to further put the hotels on a
path for growth.
Ian Glastein, Managing Principal at Monarch, said, "The overall
Eagle Hospitality transaction exemplifies the value of our broad
investment capabilities across debt and equity to target compelling
opportunities in dislocated sectors. Our ability to provide speed
and certainty of execution in complex situations is highly valued
by our partners and counterparties."
Monarch has partnered with Hersha Hospitality Management, an
industry leading hospitality management, investment, and
development firm with approximately 150 hotels across 23 states, to
assist in the operations and management of the portfolio.
About Monarch Alternative Capital LP
Monarch Alternative Capital LP -- http://www.monarchlp.com-- is a
global investment firm founded in 2002 with approximately $9
billion in assets under management. Monarch focuses primarily on
opportunistic and distressed situations across corporate debt, real
estate, special situations, and other market segments. Monarch
draws on the skills and experience of its employees across its
offices in New York and London.
About Hersha Hospitality Management (HHM)
Hersha Hospitality Management -- http://www.hhmhospitality.com--
manages a highly diverse portfolio of approximately 150 properties
from coast to coast that are comprised of one-third lifestyle and
independent, one-third resort and full-service, and one-third urban
and select-service hotels. HHM's teams utilize proprietary data and
processes, plus a relentless focus on driving results, to maintain
its advantage and position in the marketplace for a highly diverse
group of institutional and long-term owners.
About Eagle Hospitality Group
Eagle Hospitality Trust -- https://eagleht.com/ -- is a hospitality
stapled group comprising Eagle Hospitality Real Estate Investment
Trust ("Eagle H-REIT") and Eagle Hospitality Business Trust. Based
in Singapore, Eagle H-REIT is established with the principal
investment strategy of investing on a long-term basis, in a
diversified portfolio of income-producing real estate which is used
primarily for hospitality and/or hospitality-related purposes, as
well as real estate-related assets in connection with the
foregoing, with an initial focus on the United States.
EHT US1, Inc., and 26 affiliates, including 15 LLC entities that
each owns hotels in the U.S., sought Chapter 11 protection (Bankr.
D. Del. Lead Case No. 21-10036) on Jan. 18, 2021.
EHT US1, Inc., estimated $500 million to $1 billion in assets and
liabilities as of the bankruptcy filing.
The Debtors tapped PAUL HASTINGS LLP as bankruptcy counsel; FTI
CONSULTING, INC., as restructuring advisor; and MOELIS & COMPANY
LLC, as investment banker. COLE SCHOTZ P.C. is the Delaware
counsel. RAJAH & TANN SINGAPORE LLP is Singapore Law counsel, and
WALKERS is Cayman Law counsel. DONLIN, RECANO & COMPANY, INC., is
the claims agent.
LC GENESIS: Creditors' Proofs of Debt Due August 2
--------------------------------------------------
Creditors of LC Genesis (Shanghai) Pte Ltd, which is in voluntary
liquidation, are required to file their proofs of debt by August 2,
2021, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on June 24, 2021.
The company's liquidators are:
Leow Quek Shiong
Gary Loh Weng Fatt
c/o BDO Advisory Pte. Ltd.
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
PARK HOTEL: High Court Grants Wind-Up Bid
------------------------------------------
The Straits Times reports that a firm, that had until recently
owned Singapore-based Park Hotel Group which has nearly 30 hotels
and resorts across Asia, has been wound up for failing to pay
$5.228 million, including rent, owed in relation to Grand Park
Orchard.
The High Court on July 2 granted an application by landlord New
Park Property to wind up Park Hotel Management (PHM), ST relates.
WEE KIAT: Creditors' Proofs of Debt Due August 3
------------------------------------------------
Creditors of Wee Kiat Development Pte Ltd, which is in voluntary
liquidation, are required to file their proofs of debt by August 3,
2021, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on June 25, 2021.
The company's liquidators are:
Muk Siew Peng
Seah Jeng Wee
Seah Jeng Hoe
6 Shenton Way
OUE Downtown 2
#33-00 Singapore 068809
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2021. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
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