/raid1/www/Hosts/bankrupt/TCRAP_Public/210930.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, September 30, 2021, Vol. 24, No. 190
Headlines
A U S T R A L I A
AL SMITH: First Creditors' Meeting Set for Oct. 8
INFRABUILD AUSTRALIA: Moody's Cuts CFR to B3, Put Under Review
C H I N A
CHINA EVEGRANDE: Sells US$1.5BB Bank Stake to State-Owned Firm
CHINA EVERGRANDE: Fitch Lowers LT Foreign Currency IDRs to 'C'
CHINA EVERGRANDE: On Hook for Jumbo Fortune Bond, Creditors Claim
CHINA EVERGRANDE: Shenzhen Gov't. Probes Wealth Management Arm
CHINA EVERGRANDE: Stadium Construction Proceeding as Planned
HELENBERGH CHINA: Moody's Affirms B2 CFR, Alters Outlook to Neg.
HNA GROUP: Seeks to Repay Less Than 50% of Debt Claims vs. Unit
I N D I A
AADHYA INFRA: CRISIL Keeps B+ Debt Rating in Not Cooperating
AKR CONSTRUCTION: CRISIL Keeps C Debt Ratings in Not Cooperating
ARADHANA BUILDERS: CRISIL Lowers Rating on INR13cr Loan to B
BEFFY CASHEW: CRISIL Lowers Rating on INR27cr Loan to D
DS KULKARNI: Investors Want Probe Into Alleged Payments to Lenders
JAG VIDHYA: CRISIL Keeps D Debt Ratings in Not Cooperating
KADAPA OILS: CRISIL Keeps B Debt Rating in Not Cooperating
KEEN AND CORE: CRISIL Keeps C Debt Rating in Not Cooperating
KNM TRADERS: CRISIL Keeps B Debt Ratings in Not Cooperating
LAXMI OPTICALS: CRISIL Keeps B- Debt Ratings in Not Cooperating
M.P.S. STEEL: CRISIL Keeps D Debt Ratings in Not Cooperating
MG INDUSTRIES: CRISIL Keeps B+ Debt Ratings in Not Cooperating
MODERN OVERSEAS: CRISIL Keeps D Debt Rating in Not Cooperating
MODULO CERAMICS: CRISIL Assigns B+ Rating to INR17.93cr Loan
NATWEST ESTATES: CRISIL Keeps B+ Debt Ratings in Not Cooperating
NAVEEN HOTELS: CRISIL Lowers Rating on INR75cr Loans to D
NEERAJA DEVELOPERS: CRISIL Keeps B+ Ratings in Not Cooperating
NISHANTH POULTRY: CRISIL Cuts Rating on INR8.55cr Loans to D
NISHI EGG: CRISIL Lowers Rating on INR12cr Loans to B
RATHANAVEL FOOD: CRISIL Keeps B+ Debt Ratings in Not Cooperating
SHIVAM MOTORS: CRISIL Lowers Rating on INR25.11cr Loan to B+
STERLING & WILSON POWERGEN: ICRA Cuts Rating on Term Loan to B+
TIRUPATI INTERNATIONAL: CRISIL Keeps B+ Rating in Not Cooperating
VEERA BRAHMENDRA: CRISIL Keeps C Debt Ratings in Not Cooperating
VGS REALTY CONSTRUCTION: Insolvency Resolution Case Summary
VILIN BIO: Insolvency Resolution Process Case Summary
VTC - KANYAKUMARI: CRISIL Keeps B Rating in Not Cooperating
VVF INDIA LIMITED: Insolvency Resolution Process Case Summary
J A P A N
SAPPORO HOLDINGS: Egan-Jones Keeps B Senior Unsecured Ratings
P H I L I P P I N E S
GRAND AGRI: BSP Orders Closure of 6th Problematic Bank This Year
S I N G A P O R E
ANG CHENG: First Creditors' Meeting Set for Oct. 13
ASECURE PTE: Creditors' Proofs of Debt Due on Oct. 28
EAGLE HOSPITALITY: Committee Opposes Plan Filing Extension
EAGLE HOSPITALITY: Committee, BofA Offer Alternative Plan
EZION HOLDINGS: Posts US$6.4MM for Half-Year Ended June 30
OCEANUS GROUP: Exits SGX Watch List After Nearly Six Years
PETRA I: Members' Final Meeting Set for Oct. 28
V I E T N A M
SAIGON-HANOI COMMERCIAL: Moody's Rates $500MM MTN Drawdown 'B2'
- - - - -
=================
A U S T R A L I A
=================
AL SMITH: First Creditors' Meeting Set for Oct. 8
-------------------------------------------------
A first meeting of the creditors in the proceedings of AL Smith Pty
Ltd and JNK Property Holdings Pty Ltd will be held on Oct. 8, 2021,
at 10:30 a.m. via virtual meeting technology.
Stephen John Hundy -- Stephen.Hundy@worrells.net.au -- of Worrells
Solvency & Forensic Accountants was appointed as administrator of
AL Smith on Sept. 27, 2021.
INFRABUILD AUSTRALIA: Moody's Cuts CFR to B3, Put Under Review
--------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating and backed senior secured notes rating of InfraBuild
Australia Pty Ltd to B3 from B2. At the same time, Moody's has
placed the ratings under review for further downgrade. The outlook
was changed to ratings under review from negative.
RATINGS RATIONALE
The downgrade of InfraBuild's ratings to B3 and the further review
reflect the increasing refinancing risk surrounding the maturity of
its AUD250 million asset-based lending facility (ABL) due October
2022. Moody's views InfraBuild not completing its refinancing
initiatives at least one-year prior to its ABL maturity exposes the
company to material market risk and increases the likelihood of a
liquidity shortfall if the refinancing is not completed ahead of
maturity.
Under Moody's base case assumptions for the next 12-to-18 months,
the rating agency expects that InfraBuild should generate
meaningful positive free cash flow, which would allow the company
to repay its borrowings under the ABL facility and provide cash
backing for letters of credit that are currently supported by the
facility.
However, if a refinancing does not occur prior to the facility
coming due, and the company needs to use its cash flow and cash
balances to repay the facility and support letters of credit,
Moody's would expect overall liquidity to reduce to unsustainable
levels to support its ongoing operations. Liquidity risk management
is a key component of financial strategy and risk management under
Moody's governance risk assessment framework.
Under Moody's base case forecasts, the agency expects that without
a refinancing of the ABL that total available liquidity would
likely reduce to around AUD130-140 million in October 2022. Moody's
views this as an unsustainably low level of liquidity for a
business of InfraBuild's scale and working capital needs. In
addition, Moody's would view an inability to secure refinancing for
the ABL would also increase the risk that the company may be unable
to refinance its USD325 million of senior secured notes coming due
in October 2024.
Moody's understands that InfraBuild is in advanced stages of
raising funding to refinance the ABL and the company expects this
to be completed in the first half of the fiscal year ended June
2022 (fiscal 2022). The agency also notes that the company has been
working on significant initiatives to address its working capital
position, which if achieved, could materially increase free cash
flow generation beyond Moody's current expectations and support the
sustainability of its liquidity profile without refinancing the
ABL.
Infrabuild has been demonstrating an ongoing trend of improving
operating performance and has been benefitting from strong steel
demand and pricing conditions in Australia. Moody's expects that
EBITDA generation and credit metrics for fiscal 2021 will be ahead
of Moody's previous expectations and that operating conditions will
support further improvements in fiscal 2022. Under the agency's
base case assumptions, InfraBuild's should generate EBIT margins
over 5% and register debt/EBITDA and EBIT interest coverage around
the mid-2x range for fiscal 2022. The agency also expects that this
strong operating performance combined with planned working capital
initiatives should allow for substantial free cash flow
generation.
These credit metric levels are in line with peers at higher rating
levels and given that liquidity and refinancing risk were key
drivers of recent rating downgrades, the successful completion of a
refinancing of the ABL, and/or free cash flow generation
significantly above Moody's current forecasts, could lead to
positive rating action as it would materially improve InfraBuild's
liquidity profile.
However, the review for downgrade reflects Moody's view that
refinancing risk will continue to intensify until InfraBuild
completes its refinancing plans and the review will focus on
InfraBuild's progress on these initiatives. Moody's expects to
conclude the review within the next 60 days.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Given the current review for downgrade, the ratings are unlikely to
be upgraded prior to the completion of InfraBuild's refinancing of
the ABL facility.
However, the ratings could be stabilized, or even experience
positive momentum, if the ABL is successfully refinanced,
particularly if the facility is upsized as Moody's understands is
likely.
The ratings would likely be downgraded if InfraBuild is unable to
complete its refinancing of the ABL facility within the next two
months and/or its liquidity profile weakens further. Ratings could
also be downgraded if the issues facing its ultimate parent, GFG
Alliance, impact more meaningfully on its business and financial
profile.
The principal methodology used in these ratings was Steel Industry
published in September 2017.
BACKGROUND
InfraBuild Australia Pty Ltd is Australia's largest and only
vertically integrated EAF manufacturer and supplier of steel long
products. The company supplies around 2.3 million tonnes per annum
of steel long products to over 15,000 active customers in
Australia. The company's integrated operations reflect its position
as the second largest ferrous and non-ferrous recycling business in
Australia by volume and its large distribution network.
InfraBuild is a private company, and is ultimately owned by GFG
Alliance, a United Kingdom based international industrial, energy,
natural resources and financial services group.
=========
C H I N A
=========
CHINA EVEGRANDE: Sells US$1.5BB Bank Stake to State-Owned Firm
--------------------------------------------------------------
The Financial Times reports that China Evergrande has raised RMB10
billion ($1.5 billion) by selling part of its stake in a bank to a
state-owned investment group, as the heavily indebted Chinese
property developer battles for survival amid mounting pressure over
bond repayment deadlines.
The FT relates that the company said on Sept. 29 it had sold a 20
per cent stake in Shengjing Bank, based in the northern city of
Shenyang, to Shenyang Shengjing Finance Investment Group, which is
owned by local authorities.
Evergrande will retain a 15 per cent stake in Shengjing Bank, which
is "demanding" that the net proceeds from the sale be used to
settle liabilities the group owes to it, according to a regulatory
filing cited by the FT.
The FT says the sale amount is dwarfed by Evergrande's total
liabilities of more than $300 billion. The world's most indebted
property developer, the company is engulfed in a deepening
liquidity crisis after it missed an $83.5 million interest payment
on a dollar-denominated bond last week.
The company's woes have triggered global concerns over the health
of China's real estate sector, a longstanding driver of the
country's economy.
Evergrande, which last month warned of the risk of default, has yet
to make any announcement regarding the payment. A separate interest
payment on another dollar-denominated bond was due yesterday.
According to the FT, Evergrande said in a filing on Sept. 29 that
its liquidity issue had "adversely affected" the bank and added
that the buyer, "being a state-owned enterprise, will help
stabilise" its operations.
The inclusion of a government body in the process will add to
anticipation of official involvement in what could become the
biggest debt restructuring in Chinese history.
The FT notes that Evergrande's fate poses an immense political
challenge to local and central governments, given it has nearly 800
projects across hundreds of cities where many citizens have already
paid for unfinished apartments.
Local authorities have already inserted themselves into part of
Evergrande's operations to take control of sales revenue. In a
district of the southern city of Guangzhou, a local government
department said last week that revenues at an Evergrande subsidiary
must be put into a government account so that "homebuyers' interest
can be protected," the FT relays. Another housing bureau in the
nearby city of Zhuhai asked sales proceeds to be put into a
government account.
Chinese developers often sell residential properties to homebuyers
before completion, allowing the cash to be invested into new land
purchases which provide crucial revenue for local governments.
Sales of both new homes and land across China have slumped over
recent weeks, in a sign that government measures designed to
constrain borrowing by property developers are weighing on the
sector.
Last week's missed interest payment due on a bond maturing next
year was the most prominent deadline yet for a company which is one
of the biggest borrowers on Asian corporate bond markets, the FT
states. The company has $20 billion of dollar-denominated bonds
outstanding.
Offshore bondholders have hired law firm Kirkland & Ellis and
Moelis, the boutique investment bank, to advise ahead of a
potential restructuring, the FT discloses.
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
September 17 2021, S&P Global Ratings downgraded on September 15,
2021, China Evergrande Group (Evergrande) and its subsidiaries
Hengda Real Estate Group Co. Ltd. and Tianji Holding Ltd. to 'CC'
from 'CCC'. S&P also lowered its long-term issue rating on the U.S.
dollar notes issued by Evergrande and guaranteed by Tianji to 'C'
from 'CCC-'. The negative outlook reflects Evergrande's very high
nonpayment risk and probability of debt restructuring. S&P said it
downgraded Evergrande because the company's liquidity appears to be
depleted. As such, S&P believes nonpayment risk is extremely high
and could ultimately lead to debt restructuring--meaning a default
scenario is a virtual certainty.
CHINA EVERGRANDE: Fitch Lowers LT Foreign Currency IDRs to 'C'
--------------------------------------------------------------
Fitch Ratings has downgraded to 'C' from 'CC', the Long-Term
Foreign-Currency Issuer Default Ratings (IDRs) of Chinese
homebuilder, China Evergrande Group, and its subsidiaries, Hengda
Real Estate Group Co., Ltd and Tianji Holding Limited.
Fitch has affirmed the senior unsecured ratings of Evergrande and
Tianji at 'C', with a Recovery Rating of 'RR6', as well as the
Tianji-guaranteed senior unsecured notes issued by Scenery Journey
Limited at 'C', with a Recovery Rating of 'RR6'.
The downgrades reflect that Evergrande is likely to have missed
interest payment on its senior unsecured notes and entered the
consequent 30-day grace period before non-payment constitutes an
event of default.
KEY RATING DRIVERS
Non-Payment of Bond Interest: Neither the company nor the trustee
has made an announcement about the coupon payment due on 23
September for Evergrande's USD2,025 million of 8.25% bonds. In
addition, Fitch has not obtained confirmation that the coupon
payment has been made. As such, it is assumed that the company has
entered the 30-day grace period for interest non-payment before an
event of default is triggered.
DERIVATION SUMMARY
Evergrande's ratings reflect the non-payment of bond interest.
KEY ASSUMPTIONS
Recovery Rating Assumptions
Evergrande
The recovery analysis assumes that Evergrande would be liquidated
in a bankruptcy because it is an asset-trading company. Fitch
assumes both Hengda and Evergrande would go into bankruptcy if
Evergrande defaults.
Fitch assumes a 10% administrative claim.
Liquidation Approach
The liquidation estimate reflects Fitch's view of the value of
balance-sheet assets that can be realised in a sale or liquidation
process conducted during a bankruptcy or insolvency proceeding and
distributed to creditors.
-- 60% advance rate applied to net inventory to reflect the
potentially steep discount that may be needed to sell the
large land bank in a distressed scenario;
-- 70% advance rate applied to trade receivables, which mainly
stems from the sale of properties; 87% of trade receivables
are due within 90 days;
-- 60% advance rate applied to property, plant and equipment,
which mainly comprise buildings and construction in progress;
-- 10% advance rate applied to investment properties based on a
conservative 6.5% cap rate on annualised rental income;
-- 100% advance rate applied to available cash, but Fitch has
added trade payables to the liability waterfall.
Fitch excluded restricted cash, as there is no breakdown on how
much can be used for debt repayment. The amount is immaterial.
Fitch excluded investments in joint ventures of CNY88 billion as
they may not be easily liquidated; these include stakes in
non-property businesses, including CNY30 billion in Evergrande's
36% stake in Shengjing Bank Co.,Ltd. and CNY18 billion in its 50%
stake in Evergrande Life Assurance Co., Ltd, based on end-2020
breakdown. Shengjing Bank is listed on the Hong Kong Exchange, but
the stake could still be difficult to liquidate given Evergrande's
large position and thin trading volume. The company recently sold a
1.9% stake in Shengjing Bank for CNY1 billion, representing around
a 35% discount to book value.
Fitch estimates Evergrande's liquidation value by de-consolidating
Hengda, China Evergrande New Energy Vehicle Group Limited
(Evergrande Auto) and Evergrande Property Services Group Limited.
Fitch estimates the residual value of Hengda and Evergrande Auto by
assuming the subsidiaries will be liquidated, since they are
asset-trading businesses; Evergrande Auto's electronic-vehicle
business remains loss making. Fitch expects the residual value of
Hengda and Evergrande Auto to be zero after paying off debt. The
market value of Evergrande's stake in Evergrande Auto is around
CNY30 billion, but there is little evidence of progress after the
company announced its intention to sell the business.
Fitch estimates the residual value of Evergrande's stake in
Evergrande Property Services based on a going-concern approach.
Fitch applies a 5x enterprise value/EBITDA multiple and Fitch's
estimated recovery value is at a 30% discount to the market value
on 2 September 2021.
The allocation of value in the liability waterfall results in
recovery corresponding to a Recovery Rating of 'RR6' for the senior
unsecured notes.
Tianji
Evergrande did not provide Tianji's 1H21 financial statements, so
Fitch has based its recovery analysis on end-2020 financials.
However, Fitch has updated the advance rates to be in line with
that of Evergrande.
The recovery analysis assumes that Tianji would be liquidated in a
bankruptcy as it is an asset-trading company.
Fitch assumes a 10% administrative claim.
Liquidation Approach
The liquidation estimate reflects Fitch's view of the value of
balance-sheet assets that can be realised in a sale or liquidation
process conducted during a bankruptcy or insolvency proceeding and
distributed to creditors.
-- 60% advance rate applied to net inventory;
-- 70% advance rate applied to trade receivables, mainly stemming
from the sales of properties;
-- 60% advance rate applied to property, plant and equipment;
-- 10% advance rate applied to investment properties based on a
conservative 6.5% cap rate on annualised rental income;
-- 100% advance rate applied to available cash, which amounts to
less than the value of trade payables;
-- The allocation of value in the liability waterfall results in
recovery corresponding to a Recovery Rating of 'RR6' for the
senior unsecured notes.
RATING SENSITIVITIES
Factor that could, individually or collectively, lead to positive
rating action/upgrade:
-- Resolution of the interest non-payment within the grace
period, ultimately without the use of a distressed debt
exchange (DDE).
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Commencement of a DDE;
-- Announcement that the issuer entered into bankruptcy filings,
administration, receivership, liquidation or other formal
winding-up procedure, or otherwise ceased business.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
ISSUER PROFILE
Evergrande is a top-three Chinese property developer by contracted
sales. Headquartered in Shenzhen, Evergrande has a strong national
presence, with 798 projects in 234 cities covering all of China's
31 provinces and municipalities. The company also has businesses in
electric vehicles, finance, healthcare and cultural tourism.
SUMMARY OF FINANCIAL ADJUSTMENTS
Fitch's calculation of CNY1.6 trillion in adjusted inventory at
end-2020 includes property development inventory, investment
property at cost, hotel properties and joint-venture investments.
Customer deposits, amounts due to non-controlling interests and
amounts due to joint ventures and associates are deducted from the
summation of items mentioned previously. Guarantees to third
parties are calculated as debt.
ESG CONSIDERATIONS
Evergrande has an ESG Relevance Score of '4' for Governance
Structure to reflect its aggressive financial policies, including
its investments in non-core businesses, which has a negative impact
on the credit profile, and is relevant to the ratings in
conjunction with other factors.
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.
CHINA EVERGRANDE: On Hook for Jumbo Fortune Bond, Creditors Claim
-----------------------------------------------------------------
Bloomberg News reports that some holders of a bond issued by a
company called Jumbo Fortune Enterprises are forming a committee to
press their claims in the event of a default because they maintain
China Evergrande Group is a guarantor of the debt, according to
people familiar with the plans.
The US$260 million note from Jumbo Fortune Enterprises matures Oct.
3, according to data compiled by Bloomberg. The dollar note is
guaranteed by China Evergrande Group and its unit Tianji Holding
Ltd, people familiar with the matter said, asking not to be
identified because the details are private, Bloomberg says.
Jumbo Fortune is a joint venture whose owners include Hengda Real
Estate, Evergrande's main onshore unit, according to a local bond
prospectus published in April by Hengda. As Oct. 3 is a Sunday, the
effective due date is the following day.
According to Bloomberg, the deadline is perhaps Evergrande's
largest debt test since regulators recently urged the company to
avoid defaulting on dollar bonds. The world's most indebted
developer and biggest issuer of junk bonds in Asia sparked fears of
contagion across global financial markets in recent weeks.
It's already fallen behind on payments to banks, suppliers and
holders of onshore investment products, Bloomberg notes. The
builder faced a US$45 million coupon on Sept. 29 for a dollar bond
that matures 2024, after giving no sign last week of having met a
separate US$83.5 million coupon payment on other securities.
Bloomberg says the guarantees from Evergrande and Tianji Holding
constitute direct, unconditional and unsubordinated obligations and
rank on at least on an equal footing with the other unconditional
and unsubordinated obligations of the guarantors, according to the
people familiar with the plans.
Five business days would be allowed if any failure to pay were due
to administrative or technical error, though beyond that there
would be no grace period, the people said, Bloomberg relays.
The security is not listed on exchanges, according to the
Bloomberg-compiled data. Bonds without such listings that were
issued to pre-selected buyers rather than through a public offering
are sometimes called private placements, notes Bloomberg.
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
September 17 2021, S&P Global Ratings downgraded on September 15,
2021, China Evergrande Group (Evergrande) and its subsidiaries
Hengda Real Estate Group Co. Ltd. and Tianji Holding Ltd. to 'CC'
from 'CCC'. S&P also lowered its long-term issue rating on the U.S.
dollar notes issued by Evergrande and guaranteed by Tianji to 'C'
from 'CCC-'. The negative outlook reflects Evergrande's very high
nonpayment risk and probability of debt restructuring. S&P said it
downgraded Evergrande because the company's liquidity appears to be
depleted. As such, S&P believes nonpayment risk is extremely high
and could ultimately lead to debt restructuring--meaning a default
scenario is a virtual certainty.
CHINA EVERGRANDE: Shenzhen Gov't. Probes Wealth Management Arm
---------------------------------------------------------------
Reuters reports that the Shenzhen government is investigating a
unit of China Evergrande, the city's financial regulator told
investors on Sept. 27, in the first sign of an official inquiry
into the wealth management crisis at the real estate giant.
Evergrande, the world's most indebted property developer
headquartered in Shenzhen, owes $305 billion and has run short of
cash, triggering concerns its problems could ripple through China's
financial system, Reuters says.
As its liquidity crisis deepened, the company's wealth arm earlier
this month missed a payment on wealth management products (WMPs),
leading to protests by investors who fear they will never get their
money back.
In a letter to investors seen by Reuters, the Shenzhen Financial
Regulatory Bureau said "relevant departments of the Shenzhen
government have gathered public opinions about Evergrande Wealth
and are launching a thorough investigation into related issues of
the company".
It is also urging China Evergrande and Evergrande Wealth to work to
repay investors, the letter said, which was sent following investor
demands for an inquiry.
Reuters says China Evergrande, in common with other
heavily-indebted conglomerates, issued high-yielding WMPs to
investors - a popular way of borrowing that sidesteps government
lending restrictions.
More than 80,000 people - including Evergrande employees, their
families and friends as well as owners of Evergrande properties -
bought WMPs through Evergrande that raised more than CNY100 billion
($15.47 billion) in the last five years, and some CNY40 billion of
the investments are outstanding, a sales manager of Evergrande
Wealth and investors said, Reuters discloses.
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
September 17 2021, S&P Global Ratings downgraded on September 15,
2021, China Evergrande Group (Evergrande) and its subsidiaries
Hengda Real Estate Group Co. Ltd. and Tianji Holding Ltd. to 'CC'
from 'CCC'. S&P also lowered its long-term issue rating on the U.S.
dollar notes issued by Evergrande and guaranteed by Tianji to 'C'
from 'CCC-'. The negative outlook reflects Evergrande's very high
nonpayment risk and probability of debt restructuring. S&P said it
downgraded Evergrande because the company's liquidity appears to be
depleted. As such, S&P believes nonpayment risk is extremely high
and could ultimately lead to debt restructuring--meaning a default
scenario is a virtual certainty.
CHINA EVERGRANDE: Stadium Construction Proceeding as Planned
------------------------------------------------------------
Reuters reports that work on a China Evergrande Group project in
the southern city of Guangzhou to build one of the world's largest
soccer stadiums is proceeding "as normal", the company told Reuters
on Sept. 27, despite the real estate giant's cash woes.
Evergrande owes $305 billion in debt and has run short of cash,
rattling global markets. It missed a payment deadline on a dollar
bond last week.
According to Reuters, construction on the Guangzhou FC Soccer
stadium, which was set to cost around CNY12 billion ($1.86
billion), began in April last year and had been due to finish by
2022.
"Construction work on the soccer stadium is still proceeding as
normal and in an orderly manner," China Evergrande said in response
to a query from Reuters.
The stadium would have a capacity of over 100,000, which would make
it the world's largest purpose-built soccer venue by capacity.
"The world's eyes are on it," the owner of a small store nearby
surnamed Zhao said on Sunday, notes the report. "How could the
biggest soccer stadium in the world not be built? It won't become a
waste construction site. The government wouldn't let this happen."
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
September 17 2021, S&P Global Ratings downgraded on September 15,
2021, China Evergrande Group (Evergrande) and its subsidiaries
Hengda Real Estate Group Co. Ltd. and Tianji Holding Ltd. to 'CC'
from 'CCC'. S&P also lowered its long-term issue rating on the U.S.
dollar notes issued by Evergrande and guaranteed by Tianji to 'C'
from 'CCC-'. The negative outlook reflects Evergrande's very high
nonpayment risk and probability of debt restructuring. S&P said it
downgraded Evergrande because the company's liquidity appears to be
depleted. As such, S&P believes nonpayment risk is extremely high
and could ultimately lead to debt restructuring--meaning a default
scenario is a virtual certainty.
HELENBERGH CHINA: Moody's Affirms B2 CFR, Alters Outlook to Neg.
----------------------------------------------------------------
Moody's Investors Service has affirmed Helenbergh China Holdings
Limited's B2 corporate family rating and B3 senior unsecured
rating.
At the same time, Moody's has changed the outlook to negative from
stable.
"The negative outlook reflects our expectation of Helenbergh
China's weakening liquidity buffer and credit metrics amid
challenging operating and funding environments in China," says
Celine Yang, a Moody's Vice President and Senior Analyst.
"At the same time, the rating affirmation reflects our expectation
that Helenbergh China's stable contracted sales will support its
liquidity over the next 12-18 months," adds Yang
RATINGS RATIONALE
Helenbergh China's B2 CFR mainly reflects the company's good track
record of developing properties and executing sales in its key
markets, and its growing geographic coverage.
However, the B2 CFR is constrained by the company's moderate
interest coverage amid weakening profitability and limited funding
access with a relatively heavy exposure to trust loans, though
reducing since end of 2020. The CFR also considers Helenbergh
China's status as a private company, with lower corporate
transparency and a less-developed corporate governance structure
compared with listed companies.
Moody's expects the company's liquidity buffer will weaken, given a
longer cash collection cycle for its property sales amid the
currently tight funding conditions in China. However, Moody's
expects Helenbergh China's cash holdings, together with its cash
flow from operating activities, will be sufficient to cover the
company's maturing debt and committed land payments over the next
12-18 months.
Moody's estimates the company's annual contracted sales will remain
largely stable at RMB63 billion-RMB65 billion in 2021-22 annually
from RMB65 billion in 2020.
However, the company's gross profit margin will weaken as a result
of higher land costs and price caps implemented in the cities it
operates. As a result, its adjusted EBIT/interest coverage will
reduce to around 1.5x over the next 1-2 years from 1.7x in 2020,
which is weak compared to its B2 rated peers.
The B3 senior unsecured bond rating is one notch lower than
Helenbergh China's CFR because of structural subordination risk.
Most of the company's claims are at the subsidiary level and have
priority over claims at the holding company in a bankruptcy
scenario. In addition, the holding company lacks significant
mitigating factors for structural subordination.
Moody's has also considered the following environmental, social and
governance (ESG) factors in its assessment.
From a governance perspective, Moody's has considered Helenbergh
China's private company status, with its key shareholders, Huang
Chiheng, holding 98.99% of the company's shares as of June 30,
2020. Its private company status has also resulted in lower
corporate transparency and a less-developed corporate governance
structure compared with listed companies.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade is unlikely over the near term given the negative
outlook.
However, Moody's could change the outlook to stable if Helenbergh
China (1) achieves its planned contracted sales and revenue growth;
(2) improves its financial metrics, with EBIT/interest coverage
consistently above 1.5x-2.0x; (3) improves its corporate
transparency; and (4) strengthens its liquidity by diversifying its
funding channels and extending its debt maturity profile.
On the other hand, Moody's could downgrade the company's ratings if
its liquidity weakens, or if its key credit metrics deteriorate
because of lower contracted sales or a more aggressive approach to
land acquisitions, such that EBIT/interest coverage below 1.5x or
unrestricted cash/short-term debt failing to trend towards 1.0x.
The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in January 2018.
Helenbergh China Holdings Limited is a property developer in China.
As of the end of June 2021, the company had land reserves of 32.8
million square meters in gross floor area (GFA).
HNA GROUP: Seeks to Repay Less Than 50% of Debt Claims vs. Unit
---------------------------------------------------------------
Caixin Global reports that HNA Group Co. Ltd. has disclosed a plan
to repay less than half of the billions in debt claims creditors
have sought from its airline business, after the unit secured a
strategic investor earlier this month as part of its bankruptcy
restructuring.
Under the tentative plan, Shanghai-listed Hainan Airlines Holding
Co. Ltd. and 10 affiliates will repay CNY161.3 billion ($25
billion) of the roughly CNY400 billion sought by 4,915 creditors,
Caixin relates citing a statement filed Sept. 27 to the Shanghai
Stock Exchange.
Under the plan, creditors will be paid no more than CNY100,000 in a
one-time cash payment, while parent HNA Group and other related
firms will be responsible for paying two-thirds of remaining debts,
with the final third disbursed by Hainan Airlines under a
debt-for-equity swap, with shares priced at CNY3.18, Caixin
discloses.
About HNA Group
China-based HNA Group Co. Ltd. offers airlines services. The
Company provides domestic and international aviation
transportation, air travel, aviation maintenance, and aviation
logistics services. HNA Group also operates holding, capital,
tourism, logistics, and other business.
As reported in the Troubled Company Reporter-Asia Pacific, HNA
Group on Jan. 29, 2021 declared bankruptcy and restructuring after
a multi-year debt and liquidity crisis. The company was informed by
South China's Hainan High People's Court on Jan. 29 that "because
the company is unable to pay off its debts, related creditors
appealed to the court for the company's bankruptcy and
restructuring," HNA said.
According to Global Times, HNA Group said it will cooperate with
the court for judicial review, carry forward the debt disposal, and
support the court's protection of the legal rights of its creditors
so as to ensure the smooth operations of the company.
On March 15, 2021, a court in Hainan approved the merger and
restructuring of 320 affiliates of HNA Group into the parent
company, paving way for the conglomerate to eventually emerge from
bankruptcy, Caixin Global said.
HNA Group was designated as administrator of the merger, and
creditors will hold their first meeting June 4, according to a
statement issued March 15 by the Hainan High People's Court. The
320 units will be integrated into HNA group's bankruptcy
reorganization, and the group will submit a restructuring plan to
the creditor meeting for approval, the court said.
=========
I N D I A
=========
AADHYA INFRA: CRISIL Keeps B+ Debt Rating in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Aadhya Infra
Management Builders and Developers continue to be 'CRISIL B+/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 20 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with Aadhya for
obtaining information through letters and emails dated February 22,
2021 and August 13, 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 Aadhya, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
Aadhya is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of Aadhya continue to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Aadhya, established in 2016, is undertaking the Aadhya Advaita
project on Kismatpur Road, Hyderabad. The project comprising of 61
luxury villas is spread across 6 acres and is under construction as
of December 2017.
AKR CONSTRUCTION: CRISIL Keeps C Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of AKR
Construction Limited continue to be 'CRISIL C/CRISIL A4 Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 48 CRISIL A4 (Issuer Not
Cooperating)
Bank Guarantee 13.13 CRISIL A4 (Issuer Not
Cooperating)
Bank Guarantee 29.12 CRISIL A4 (Issuer Not
Cooperating)
Letter of Credit 3 CRISIL A4 (Issuer Not
Cooperating)
Overdraft Facility 15 CRISIL C (Issuer Not
Cooperating)
Overdraft Facility 5 CRISIL C (Issuer Not
Cooperating)
Overdraft Facility 7.75 CRISIL C (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with AKR for
obtaining information through letters and emails dated February 22,
2021 and August 13, 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 AKR, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AKR
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AKR continue to be 'CRISIL C/CRISIL A4 Issuer Not Cooperating'.
Established in the early 1990s as a proprietary concern AKR
Construction and later converted into a closely held public company
in 2004, AKR undertakes civil construction works, primarily
irrigation projects in Andhra Pradesh, Telangana, Karnataka, and
Madhya Pradesh.
ARADHANA BUILDERS: CRISIL Lowers Rating on INR13cr Loan to B
------------------------------------------------------------
CRISIL Ratings has revised its rating on the long-term bank
facilities of Aradhana Builders Private Limited (ABPL) to 'CRISIL
D' from 'CRISIL B/Stable' and simultaneously upgraded the rating to
'CRISIL B/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Drop Line 4.5 CRISIL B/Stable (Revised from
Overdraft 'CRISIL B/Stable' to
Facility 'CRISIL D' and simultaneously
upgraded to 'CRISIL B/Stable')
Proposed Term 13 CRISIL B/Stable (Revised from
Loan 'CRISIL B/Stable' to
'CRISIL D' and simultaneously
upgraded to 'CRISIL B/Stable')
Term Loan 2.5 CRISIL B/Stable (Revised from
'CRISIL B/Stable' to
'CRISIL D' and simultaneously
upgraded to 'CRISIL B/Stable')
The rating revision to 'CRISIL D', takes into account an instance
of delay in term loan repayment by the company in the month of
April 2021.
The rating upgrade to 'CRISIL B/Stable', from 'CRISIL D', reflects
the approval of a one-time restructuring availed of by the
company.
The rating continues to reflect the susceptibility of ABPL's
operating performance to timely completion of projects and flow of
customer advances, exposure to risks inherent in the real estate
industry, and modest scale of operations. These weaknesses are
partially offset by the extensive experience of its promoters and
established track record.
Analytical Approach
Unsecured loans of INR4.32 crore as of March 31, 2021, have been
treated as debt as these are expected to be repaid over the medium
term.
Key Rating Drivers & Detailed Description
Weaknesses:
* Susceptibility of operating performance to timely execution of
projects and flow of customer advances: Any delay in receipt of
customer advances, slowdown in the real estate sector, or increase
in interest rate could adversely affect project execution and
salability. Cash flow constraints can also affect progress or
launch of other projects.
* Modest scale of operations: Despite improving to INR25 crore in
fiscal 2021, turnover remains subdued, thereby constraining
operating efficiencies. Sales were INR7 crore till August 2021,
while INR9 crore from the flats sold are yet to be realized; these
are expected to come in by fiscal 2022-end. The company's current
project as a joint venture with Devbhoomi Constructions Pvt Ltd is
expected to complete by March 2024; however, timely completion will
remain a key monitorable.
* Exposure to inherent risks and cyclicality in the real estate
industry: The real estate sector is cyclical and affected by sharp
movements in raw material prices. Project execution is also
governed by multiple property laws and government regulations. This
risk is compounded by aggressive timelines for completion with
shortage of manpower. The recent slowdown in the real estate sector
has adversely delayed the execution and salability of several
ongoing projects.
Strength:
* Longstanding presence and established track record: The promoters
have been in the real estate business for more than 20 years,
during which they have completed about 12, mostly premium, projects
in Dehradun, which are backed by high quality of construction.
Liquidity: Poor
Bank limit utilization was moderate at around 69% during the 12
months through March 2021. Cash accrual is expected to be over INR1
crore against term debt obligation of INR0.5 crore over the medium
term; the remaining will cushion liquidity. Current ratio was
healthy at 3.91 times as of March 31, 2020. The promoters are
likely to extend equity and unsecured loans to meet working capital
requirement and debt obligation.
Outlook: Stable
The company will continue to benefit from the extensive experience
of its promoters and established track record.
Rating Sensitivity Factors
Upward Factors
* Sustainable improvement in turnover to around INR30 crore over
the medium term
* Timely completion of current projects
Downward Factors
* Significant delays in project completion leading to decline in
cash accrual below INR0.7 crore
* Delays in repayment of debt obligations
Incorporated in 1993 in Uttarakhand and promoted by Mr. Chandravir
Singh Pokhriyal and Mr. Ashok Kumar Agarwal, ABPL develops
residential and commercial properties in Dehradun.
BEFFY CASHEW: CRISIL Lowers Rating on INR27cr Loan to D
-------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long-term bank
facilities of Beffy Cashew Company (BCC) to 'CRISIL D Issuer Not
Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating' due to
delays in servicing debt obligations.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 7 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING)
Overdraft Facility 3 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING)
Packing Credit 27 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING)
Packing Credit 8 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING)
Working Capital
Facility 4 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with BCC for
obtaining information through letters and emails dated January 14,
2020 and July 17, 2020 and August 19, 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 BCC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on BCC
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, CRISIL Ratings has downgraded its
rating on the long-term bank facilities of BCC to 'CRISIL D Issuer
Not Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating' due
to delays in servicing debt obligations.
BCC, set up in 2003, is based in Kollam. The firm processes raw
cashew nuts. Mr. Benny George manages operations.
DS KULKARNI: Investors Want Probe Into Alleged Payments to Lenders
------------------------------------------------------------------
Hindustan Times reports that Pune Investors in the DS Kulkarni
group of companies have demanded that the Enforcement Directorate
(ED) investigate alleged payments made by DSK firms to various
money lenders and brokers.
A consortium comprising Ashdan Properties, Classic Promoters and
Builders and Atul Builders will take over the debt-ridden group
through the insolvency process, Hindustan Times says.
According to the report, DS Kulkarni Developers Limited (DSKDL)
owners are accused of cheating more than 30,000 investors of more
than INR2,000 crore. The case is being investigated by the Economic
Offences Wing (EOW) of the Pune police.
Hindustan Times relates that DSK investor Sanjay Ashrit said, "All
those who have invested in DSKDL properties stand to gain due to
the latest development. However, other investors like us who
invested in DSK shell companies will also get back their money
provided the case is handed over to the Enforcement Directorate. We
are very positive about the entire process and investors will get
their money back."
"Currently only DSKDL investors will get back their money while
those investors who have invested in the shell companies will have
to wait for a while. We want the refunds to be initiated at the
earliest," the report quotes complainant Jitendra Mulekar, who had
lodged an FIR against the DSK group, as saying.
Investor Manjusha Kulkarni said, "We want the ED to probe the
transfer of funds to brokers and money lenders from DSK. Through ED
the money can be retrieved and the investors can be refunded in
real time."
According to Hindustan Times, DSK's lawyer advocate Ashish Patankar
said, "The plan put forth by the consortium has been duly accepted
and is awaiting NCALT approval subject to no objections raised
either by the committee of creditors or by corporate debtors."
Manoj Kumar Agarwal, a resolution professional, on August 13
informed the listing compliance department of the Bombay Stock
Exchange (BSE) and the National Stock Exchange about the approval
of the resolution plan involving DS Kulkarni Developers, Hindustan
Times recalls.
Hindustan Times relates that Agrawal in his letter stated: "The
Committee of Creditors (CoC) has approved the resolution plan
submitted by Ashdan Properties Pvt Ltd, Classic Promoters &
Builders Pvt Ltd and Atul Builders, with a requisite majority of
the voting share as per the Insolvency and Bankruptcy Code (IBC),
2016. You are requested to take the above information on record."
There were three applications to acquire DS Kulkarni Developers
through the insolvency process. Besides the Ashdan-Classic-Atul
consortium, Mantra Properties and Developers and a trio of Hemendra
Shah, Kanhaiyalal Matani and Ghyanshyam Sukhwani had also submitted
a bid, the report notes.
About D.S. Kulkarni
Based in Pune, India, D.S. Kulkarni Developers Ltd. is a
construction company. The Company is involved in the construction
of residential buildings, including apartment blocks.
In September 2019, the National Company Law Tribunal (NCLT), Mumbai
bench, ordered the commencement of corporate insolvency resolution
process (CIRP) related to the real estate group under the
provisions of the Insolvency and Bankruptcy Code, 2016, on an
application filed by Bank of Maharashtra.
JAG VIDHYA: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Jag Vidhya
and Sons Resorts and Hotels Llp (JVS) continue to be 'CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.5 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 1.0 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 12.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with JVS for
obtaining information through letters and emails dated February 22,
2021 and August 13, 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 JVS, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on JVS
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
JVS continue to be 'CRISIL D Issuer Not Cooperating'.
JVS, established in January 2014, is promoted and managed by Mr.
Babjyot Singh Khanduja and his brother Mr. Gurpreet Singh Khanduja.
In February 2014, the firm acquired a hotel property in Nagpur,
Maharashtra, rebranded it as Heritage Embassy, and commenced
operations in August 14. A three-star property, the hotel provides
boarding and lodging facilities and has a restaurant-cum-bar, a
banquet hall, and an open air lawn.
KADAPA OILS: CRISIL Keeps B Debt Rating in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Kadapa Oils
Complex India Private Limited (KOCIPL) continues to be 'CRISIL
B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Cash 15 CRISIL B/Stable (Issuer Not
Credit Limit Cooperating)
CRISIL Ratings has been consistently following up with KOCIPL for
obtaining information through letters and emails dated February 27,
2021 and August 13, 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 KOCIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
KOCIPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of KOCIPL continues to be 'CRISIL B/Stable Issuer Not
Cooperating'.
KOCIPL, incorporated in 2017, is engaged in trading of crude edible
oils such as palm oil, sunflower, rice bran, soya and groundnut.
Incorporated in 2015, YRIPL is planning to acquire an edible oil
refinery of 200 tpd capacity based out of Kadapa, Andhra Pradesh.
Currently it is into trading of edible oil.
SGK, incorporated in 2017, is engaged in trading of refined edible
oils such as palm oil, sunflower, rice bran, soya and groundnut.
KEEN AND CORE: CRISIL Keeps C Debt Rating in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Keen and Core
Developers (KCD) continues to be 'CRISIL C/CRISIL A4 Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 5 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 6 CRISIL C (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with KCD for
obtaining information through letters and emails dated February 22,
2021 and August 23, 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 KCD, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KCD
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
KCD continue to be 'CRISIL C/CRISIL A4 Issuer Not Cooperating'.
KC is proprietorship of Mr. Satyabeer Singh registered in June
2008. The firm is engaged in civil, building and road construction
work. Operations are concentrated in Uttar Pradesh and Madhya
Pradesh.
KNM TRADERS: CRISIL Keeps B Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of KNM Traders
continue to be 'CRISIL B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit/ 2.1 CRISIL B/Stable (Issuer Not
Overdraft facility Cooperating)
Proposed Cash 7.9 CRISIL B/Stable (Issuer Not
Credit Limit Cooperating)
CRISIL Ratings has been consistently following up with KNM for
obtaining information through letters and emails dated February 22,
2021 and August 13, 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 KNM, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KNM
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
KNM continue to be 'CRISIL B/Stable Issuer Not Cooperating'.
Set up in 2014 in Chitoor, Andhra Pradesh, as a proprietorship firm
by Mr. K Reddy Vara Prasad, KNM trades in tamarind fruits. Since
tamarind is seasonal, the firm stocks it in a cold storage.
LAXMI OPTICALS: CRISIL Keeps B- Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Laxmi
Opticals (LO) continue to be 'CRISIL B-/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL B-/Stable (Issuer Not
Cooperating)
Proposed Cash 8 CRISIL B-/Stable (Issuer Not
Credit Limit Cooperating)
CRISIL Ratings has been consistently following up with LO for
obtaining information through letters and emails dated February 22,
2021 and August 13, 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 LO, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on LO is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of LO
continue to be 'CRISIL B-/Stable Issuer Not Cooperating'.
LO was established in 2005 as a proprietorship firm by Mr. Sandeep
Pahwa. It trades in optical items, such as spectacle frames,
sunglasses, contact lenses, and ophthalmic lenses; it also
processes ophthalmic lenses. The firm has showrooms in Delhi and
the NCR.
M.P.S. STEEL: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of M.P.S. Steel
Castings Private Limited continue to be 'CRISIL D/CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Letter of Credit 8 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 47.01 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Working Capital 25 CRISIL D (Issuer Not
Term Loan Cooperating)
CRISIL Ratings has been consistently following up with MPS for
obtaining information through letters and emails dated February 22,
2021 and August 13, 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 MPS, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MPS
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MPS continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
MPS was set up in 1996 to manufacture sponge iron and mild-steel
ingots. Currently, there are no commercial operations in MPS.
MG INDUSTRIES: CRISIL Keeps B+ Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of MG Industries
Private Limited (MGIPL) continue to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Long Term 3 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with MGIPL for
obtaining information through letters and emails dated February 22,
2021 and August 13, 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 MGIPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MGIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MGIPL continue to be 'CRISIL B+/Stable Issuer Not Cooperating'.
MGIPL, incorporated in 1997 is based in Gwalior, Madhya Pradesh,
and manufactures butyl rubber inner tubes. Its operations are
managed by Mr. Mohit Gupta and the manufacturing plant is in
Gwalior.
MODERN OVERSEAS: CRISIL Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Modern
Overseas Private Limited (MOPL) continues to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with MOPL for
obtaining information through letters and emails dated February 22,
2021 and August 13, 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 MOPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MOPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MOPL continues to be 'CRISIL D Issuer Not Cooperating'.
MOPL trades in buffaloes, and is promoted by the Qureshi family,
which has over three decades' experience in the industry.
Operations are managed by Mr. Naeem Qureshi and Mr. Saleem
Qureshi.
MODULO CERAMICS: CRISIL Assigns B+ Rating to INR17.93cr Loan
------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the
long-term bank facilities of Modulo Ceramics Private Limited
(MCPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 15 CRISIL B+/Stable (Assigned)
Long Term Loan 1.5 CRISIL B+/Stable (Assigned)
Long Term Loan 13.2 CRISIL B+/Stable (Assigned)
Long Term Loan 17 CRISIL B+/Stable (Assigned)
Long Term Loan 7.95 CRISIL B+/Stable (Assigned)
Long Term Loan 17.93 CRISIL B+/Stable (Assigned)
Long Term Loan 7.16 CRISIL B+/Stable (Assigned)
Proposed Long Term
Bank Loan Facility 8.7 CRISIL B+/Stable (Assigned)
The rating reflects extensive industry experience of the promoters.
These strengths are partially offset by weak financial risk profile
and working capital intensive operations.
Key Rating Drivers & Detailed Description
Strength:
* Extensive industry experience of the promoters: The promoters
have an experience of over 20 years in the industry. This has given
them an understanding of the dynamics of the market and enabled
them to establish strong market position in the region.
Weaknesses:
* Weak financial risk profile: Financial risk profile remains weak
with moderate networth, aggressive capital structure and weak debt
protection metrics.
* Working capital intensive operations: Operations remain working
intensive with high expected GCA days of 238 days as on March 31,
2021. High GCA days are due to high inventory days and moderate
debtor days. Firm maintains inventory of 4-5 months to meet the
demand from customers while it offers a credit period of 90-100
days to its customers. Therefore, operations are expected to remain
working capital intensive in the medium term.
Liquidity: Stretched
Liquidity profile is marked by moderate BLU and tight cushion
between cash accruals and repayment obligations. Additionally,
liquidity is aided by interest-free unsecured loans from
promoters.
Outlook: Stable
CRISIL Ratings believe MCPL will continue to benefit from the
extensive experience of its promoters
Rating Sensitivity Factors
Upward factors
* Sustained improvement in scale of operation while operating
profitability is maintained resulting in cash accruals above INR10
Cr
* Equity infusion resulting adjusted gearing of 2 time and TOL/ANW
of 2.1 times
Downward factors
* Interest coverage below 1.2 times for FY22
* Large debt-funded capital expenditure weakens capital structure
MCPL was incorporated in 2017. It is engaged in manufacturing of
ceramic tiles. It is promoted by Mr. NVV Seshagiri Rao and family.
NATWEST ESTATES: CRISIL Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Natwest
Estates Private Limited (NEPL) continue to be 'CRISIL B+/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Long Term 13.54 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with NEPL for
obtaining information through letters and emails dated February 22,
2021 and August 13, 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 NEPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on NEPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
NEPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Set up in 1995 by Mr. A R Sudhakar and his brother-in-law, Mr. T V
Rama Kumar, Chennai-based NEPL undertakes residential and
commercial real estate projects. The company has completed more
than 6 lakh square feet of construction in the past. Currently, the
company has one ongoing project, Natwest Vivas, situated on GST
Road, Chennai.
NAVEEN HOTELS: CRISIL Lowers Rating on INR75cr Loans to D
---------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long term bank
facilities of Naveen Hotels Limited (NHL) to 'CRISIL D' from
'CRISIL BB+/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 40 CRISIL D (Downgraded from
'CRISIL BB+/Stable')
Term Loan 35 CRISIL D (Downgraded from
'CRISIL BB+/Stable')
The downgrade reflects the delay in servicing interest and
repayment on term debt by the company due to stretch in receipt of
lease payments for its commercial properties.
The ratings reflect the weak liquidity profile and susceptibility
to economic downturns. These weaknesses are partially offset by the
promoters' experience in the hospitality industry and association
with the Taj Group of Hotels.
Key Rating Drivers & Detailed Description
Weaknesses:
* Delays in debt servicing: The company has delayed the interest
servicing for the months of July and August 2021, mainly due to the
delay in receipt of lease payments from its two properties in
Bangalore. The company has also not paid its principal obligations
for the month of Sep 2021, due on Sep 09,2021. Although there was
DSRA created as a liquidity buffer, it was not dipped in due to
non-intimation of cash flow mismatches to the banker before the due
date, leading to delay in debt servicing obligations by NHL.
* Geographical concentration and susceptibility to economic
downturns: Geographic concentration risk will persist, with
majority of its lease payments from properties in Bangalore,
Karnataka. On account of the pandemic lead disruptions, the
occupancies in commercial properties has been very low, leading to
an impact on overall business risk profile. Furthermore, since
substantial portion of the demand comes from business travelers,
changes in macro-economic factors has resulted in significant
decline in business travel and thereby an impact on the overall
revenue profile.
Strength:
* Long term lease agreement with Taj Group of Hotels: NHL has
entered into a long-term lease agreement with the Taj Group of
Hotels to operate two of its hotels in Bengaluru. The contract for
these hotels signed in 1983 and 2012 are long term in nature and
are expected to expire in 2043 and 2042.
Liquidity: Poor
Liquidity is weak, as reflected in delays in meeting term debt
interest and principal obligations. The company delayed the
interest payments for the months of July and August 2021, largely
on account of delayed receipt of its rental income from its
properties based out of Bangalore. Additionally, the principal
payment due on Sep 9, 2021, remains overdue as on date.
Rating Sensitivity factors
Upward factors:
* Track record of timely debt servicing for 90 days or more
* Higher occupancy, leading to improvement in the business risk
profile
Incorporated in 1975, NHL is a part of the RNS group, which was
started by Mr. Rama Nagappa Shetty. The company owns six hotel
complexes across Karnataka. The RNS group has presence in
diversified businesses, including construction, hotels, power,
automobiles, hospitals, and educational institutions.
NEERAJA DEVELOPERS: CRISIL Keeps B+ Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Neeraja
Developers and Promoters (NDP) continue to be 'CRISIL B+/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 2 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 8 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with NDP for
obtaining information through letters and emails dated February 22,
2021 and August 13, 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 NDP, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on NDP
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
NDP continue to be 'CRISIL B+/Stable Issuer Not Cooperating'.
NDP is a Bengaluru-based real estate firm started in 2003. NDP is a
partnership firm started by Mr. Praveen Reddy along with his wife
Ms. Pratibha Praveen. The company is engaged in developing
residential real estate viz. villas and apartments in Bengaluru.
NISHANTH POULTRY: CRISIL Cuts Rating on INR8.55cr Loans to D
------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long term bank loan
facilities of Nishanth Poultry Breeding Farm (NPBF) to 'CRISIL D'
from 'CRISIL B/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 2.35 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL B/Stable')
Term Loan 6.20 CRISIL D (Downgraded from
'CRISIL B/Stable')
The downgrade reflects NPBF's poor liquidity, as evidenced by
instances of delay in servicing of its debt obligations for the
term loan facility in the month of May 2021 & June 2021 and company
has applied for OTR in the month of July 2021, and it is in
process, along with modest scale of operations and susceptibility
to risks related to ongoing capital expenditure (capex), exposure
to inherent risks in the poultry industry, large working capital
requirement and leveraged capital structure. These weaknesses are
partially offset by extensive experience of the promoters in the
poultry industry.
Key Rating Drivers & Detailed Description
Weakness:
* Modest scale of operations and susceptibility to risks related to
ongoing capex: The modest scale is reflected in revenue of INR1.64
crore in fiscal 2019 and around INR1.57 crore in fiscal 2020. The
firm plans to expand its breeding capacity, and timely execution of
the capex and commensurate ramp up in revenue will be key rating
sensitivity factors.
* Large working capital requirement: Gross current assets were at
424 days as on March 31, 2020, on account of sizeable receivables
of 390-400 days as the firm extends extensive credit to customers.
Working capital management is supported by stretched payables. The
working capital cycle will remain stretched over the medium term.
* Exposure to inherent risks in the poultry industry: The industry
is vulnerable to outbreak of diseases, which affect production of
healthy chicks and may hit sales volume and reduce selling price.
Furthermore, demand is seasonal, leading to volatility in end
product prices.
* Expected subdued financial risk profile: The financial risk
profile will likely be constrained by high gearing and total
outside liabilities to tangible networth (TOLTNW) ratio because of
the ongoing capex. The project is funded through an aggressive
debt-to-equity ratio of over 2 times.
Strength:
* Extensive industry experience of the promoters: The promoters'
experience of 28 years in the poultry industry through a family
business has given them an understanding of the market dynamics and
helped establish relationships with suppliers and customers, which
will help scale up operations.
Liquidity: Poor
There has been an instance of delay in repayment of term loan in
the month of May 2021 & June 2021. The company has applied for OTR
in the month of July 2021, and it is in process.
Rating Sensitivity Factors
Upward factors
* Regularization of timely debt repayment with a track record of 90
days
* Efficient working capital management leading to moderation in
bank limit utilization
NPBF was established in 2016 in Secunderabad and is promoted by Mr.
Busani Srinivas and Ms Busani Nandini. It is engaged in the poultry
farming and hatchery business. The firm plans to set up a breeding
farm in Hyderabad.
NISHI EGG: CRISIL Lowers Rating on INR12cr Loans to B
-----------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of Nishi
Egg Poultry Product Private Limited (NEPPPL) to 'CRISIL B/Stable
Issuer Not Cooperating' from 'CRISIL BB+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
Proposed Fund- 4 CRISIL B/Stable (ISSUER NOT
Based Bank Limits COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with NEPPPL for
obtaining information through letters and emails dated February 22,
2021 and August 13, 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 NEPPPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
NEPPPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of NEPPPL Revised to 'CRISIL B/Stable Issuer Not
Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'.
NEPPPL was incorporated in 2005 at Tanaku, Andhra Pradesh. Mr.
Sanjay Kumar Shaw and Ms Nishi Devi are the promoters. The company
trades in eggs.
RATHANAVEL FOOD: CRISIL Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Rathanavel
Food Products Private Limited (RFPPL) continue to be 'CRISIL
B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.5 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Long Term 2.5 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with RFPPL for
obtaining information through letters and emails dated February 22,
2021 and August 13, 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 RFPPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RFPPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RFPPL continue to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Established in 1998 by Mr. Vijayan, RFPPL processes fruit pulp,
primarily mango pulp. The company derives 50-60% of its revenue
through exports to the Middle East, China, and Europe; the
remaining 40-50% is derived from sales in the domestic market.
SHIVAM MOTORS: CRISIL Lowers Rating on INR25.11cr Loan to B+
------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long-term bank
facilities of Shivam Motors Private Limited (SMPL) to 'CRISIL
B+/Stable' from 'CRISIL BB/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Drop Line 2.59 CRISIL B+/Stable (Downgraded
Overdraft from 'CRISIL BB/Stable')
Facility
Electronic Dealer 8.00 CRISIL B+/Stable (Downgraded
Financing Scheme from 'CRISIL BB/Stable')
(e-DFS)
Proposed Working 25.11 CRISIL B+/Stable (Downgraded
Capital Facility from 'CRISIL BB/Stable')
Term Loan 10.30 CRISIL B+/Stable (Downgraded
from 'CRISIL BB/Stable')
Working Capital 12.00 CRISIL B+/Stable (Downgraded
Demand Loan from 'CRISIL BB/Stable')
The downgrade reflects significant decline in revenue and
profitability, leading to a weak financial risk profile and
stretched liquidity. Revenue fell to INR126 crore in fiscal 2021
from INR315 crore in fiscal 2020, which also impacted operating
margin. Debt levels remained similar due to higher inventory and
debtors, resulting in subdued interest coverage. As a result, the
company reported cash losses and expected cash accruals for fiscal
2022 and fiscal 2023 is low against high debt obligation.
The rating reflects low bargaining power with principal, exposure
to intense competition, weak debt protection metrics, stretched
working capital cycle and declining scale of operations. These
weaknesses are partially offset by the extensive experience of the
promoter in the auto dealership segment.
Key rating drivers & detailed description
Weaknesses:
* Low bargaining power with principal and exposure to intense
competition: SMPL has to compete with other commercial vehicle
manufacturers in Chhattisgarh. Also, bargaining power against TML
is low, from which SMPL generates its entire revenue. This
constrains operating profitability.
* Weak debt protection metrics: Interest coverage ratio was 0.51
time and cash accrual negative for fiscal 2021 because of low
operating margin and high debt levels. Improvement in debt
protection metrics will be a key monitorable over the medium term.
* Stretched working capital cycle: Gross current assets (GCAs) were
177 days because of high receivables and inventory levels of 85
days and 92 days, respectively, as of March 31, 2021. Receivables
increased sharply in fiscal 2021 as the company had to extend
higher credit to customers. Also, INR4-5 crore of the receivables
comprises vehicles sold to government and for accidental cases for
which realization from insurance companies in pending. Inventory
days also increased due to lower turnover in the fiscal. Working
capital cycle is expected to improve over the medium term with
improvement in turnover once the impositions to curb the spread of
covid-19 are lifted.
* Declining scale of operations: Revenue fell to INR126 crore in
fiscal 2021 from INR660 crore in fiscal 2019 due to sluggish demand
in the automobile industry. Also, operations were shut till
mid-August 2020 due to lockdown imposed to curb the spread of
Covid-19. Turnover of the company would remain a key monitorable in
the medium term.
Strength:
* Longstanding industry presence: Experience of over four decades
of the promoter, strong relationship with the principal (Tata
Motors Ltd [TML]), and establishment of six 3S (sales, service and
supply) showrooms and six offices in northern Chhattisgarh should
continue to support the business.
Liquidity: Poor
Cash accrual is likely to be low in fiscals 2022-23 against debt
obligation of INR3-5 crore per annum. Bank limit was utilized at
88% on average during the 12 months through June 2021. Liquidity is
supported by promoter funding. Cash and bank balance stood at
INR2.6 crore as of March 31, 2021.
Outlook: Stable
The company will continue to benefit from the extensive experience
of its promoter.
Rating Sensitivity Factors
Upward Factors
* Increase in revenue and profitability leading to cash accrual
above INR4 crore
* Improvement in working capital resulting in GCAs less than 80
days
Downward Factors
* Sustained decline in revenue and profitability, further impacting
liquidity
* Further stretch in working capital cycle leading to higher
TOLANW
Incorporated in 1983 and promoted Mr. Kailash Gupta, SMPL is an
authorized dealer of commercial vehicles of TML in Chhattisgarh.
SMPL has six full-fledged showroom, workshop and spare parts outlet
at Bilaspur, Ambikapur, Korba, Raigarh, Chaampa and Pendra. SMPL
has also set up bodybuilding unit which is operational since fiscal
2013.
STERLING & WILSON POWERGEN: ICRA Cuts Rating on Term Loan to B+
---------------------------------------------------------------
ICRA has downgraded the ratings on certain bank facilities of
Sterling & Wilson Powergen Private Limited (SWPPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 25.00 [ICRA]B+ (Stable) ISSUER NOT
Term loan COOPERATING; Rating downgraded
from [ICRA]BB+ (Stable)and
continues to remain in the
'Issuer Not Cooperating'
Category
Long Term- 5.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based/ COOPERATING; Rating downgraded
Cash credit from [ICRA]BB+ (Stable)and
continues to remain in the
'Issuer Not Cooperating'
Category
Long Term/ 102.5 [ICRA]B(Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Non Fund Based Rating downgraded from
[ICRA]BB+(Stable) ISSUER
NOT COOPERATING/[ICRA]A4+
ISSUER NOT COOPERATING and
continues to remain under
issuer noncooperating
category
Rationale
The rating downgrade is because of lack of adequate information
regarding SWPPL performance and hence the uncertainty around its
credit risk. ICRA assesses whether the information available about
the entity is commensurate with its rating and reviews the same as
per its "Policy in respect of non-cooperation by a rated entity"
available at www.icra.in. The lenders, investors and other market
participants are thus advised to exercise appropriate caution while
using this rating as the rating may not adequately reflect the
credit risk profile of the entity, despite the downgrade.
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
Sterling & Wilson Powergen Private Limited (SWPPL), commenced
operations in 2009 as the marketing arm of Sterling Generators
Private Limited (SGPL). The company is engaged in the marketing,
installation and after sales service of diesel generator sets which
are manufactured by SGPL. While SGPL performs the exports and
deemed exports sales on its own, the domestic sales functions are
performed by the group companies, namely, SWPPL and SWESPL. As per
the last available information, SGPL, SWPPL and SWESPL were in the
process of amalgamation to improve synergies and cost structure.
TIRUPATI INTERNATIONAL: CRISIL Keeps B+ Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Tirupati
International (TI) continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with TI for
obtaining information through letters and emails dated February 27,
2021 and August 13, 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 TI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on TI is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of TI
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
TI, based in Surat, Gujarat was established in 2007 by Mr.
Bhagwanjibhai Savsani, Mr. Nikunj Savsani and Mr. Vinubhai Savsani.
The firm trades in advertising materials such as polyvinyl chloride
(PVC) flex paper, banner, foam, and backlit boards.
VEERA BRAHMENDRA: CRISIL Keeps C Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sree Veera
Brahmendra Swamy Spinning Mills Private Limited (SVPL) continue to
be 'CRISIL C Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.50 CRISIL C (Issuer Not
Cooperating)
Working Capital 7.51 CRISIL C (Issuer Not
Term Loan Cooperating)
CRISIL Ratings has been consistently following up with SVPL for
obtaining information through letters and emails dated February 22,
2021 and August 13, 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 SVPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SVPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SVPL continues to be 'CRISIL C Issuer Not Cooperating'.
Set up in 2006 by Mr. G Sundararamaiah and his family, SVPL
manufactures cotton yarn at its plant in Guntur, Andhra Pradesh.
VGS REALTY CONSTRUCTION: Insolvency Resolution Case Summary
-----------------------------------------------------------
Debtor: VGS Realty Construction Private Limited
Omkar House
Off. Eastern Express Highway
Opp. Sion Chunnabhatti Signal
Sion (East), Mumbai 400022
Insolvency Commencement Date: September 7, 2021
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: March 6, 2022
(180 days from commencement)
Insolvency professional: Vinod Kumar Ambavat
Interim Resolution
Professional: Vinod Kumar Ambavat
Room No. 40, 9/15 Morarji Velji Bldg
1st Floor, Dr. M.B. Velkar Street
Kalbadevi Road, Mumbai
Maharashtra 400002
E-mail: vinod.ambavat@ajallp.com
- and -
A/301 Kanakia Zillion
Junction of LBS Road and CST Road
BKC Annexe, Kalina/Kurla (West)
Mumbai 400070
E-mail: cirp.vgsrealty@gmail.com
Classes of creditors: Home buyers/Flat Owners
Insolvency
Professionals
Representative of
Creditors in a class: Rakesh Kumar Tulsyan
B-4, Vinay Tower
Kranti Nagar, Lokhandwala
Kandivali East, Mumbai
Maharashtra 400101
Nitin Kothari
Chirag Rajendra Kumar Shah
208, Ratnaraj Spring
Beside Navnirman Bank
Opp. HDFC Bank House
Navrangpura, Ahmedabad
Gujarat 380009
Last date for
submission of claims: September 27, 2021
VILIN BIO: Insolvency Resolution Process Case Summary
-----------------------------------------------------
Debtor: Vilin Bio Med Limited
H.No. 6-61-1, 1st Floor
Shilpi Complex, Dilsukhnagar
Hyderabad TG 500035
IN
Insolvency Commencement Date: September 22, 2021
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: March 24, 2022
Insolvency professional: Dr. K Lakshmi Narasimha
Interim Resolution
Professional: Dr. K Lakshmi Narasimha
H.No. 16-11-20/13, Saleem Nagar-2
Opp Tahsildar, Near TV Tower
Malakpet, Hyderabad 500036
Telangana, India
E-mail: ipdrkln17@gmail.com
Mobile: 9440986490
7th Floor, Mayur Bhawan
Shankar Market, Connaught Circus
New Delhi 110001
- and -
2nd Floor, Jeevan Vihar Building
Parliament Street
New Delhi 110001
Last date for
submission of claims: October 9, 2021
VTC - KANYAKUMARI: CRISIL Keeps B Rating in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of VTC -
Kanyakumari (VTC) continues to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 1 CRISIL B-/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with VTC for
obtaining information through letters and emails dated February 22,
2021 and August 13, 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 VTC, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VTC
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
VTC continue to be 'CRISIL B/Stable Issuer Not Cooperating'.
The VTC, established by Mr. Sreejith. S.R and N. Nandakumar is
based in Kanyakumari (Tamil Nadu) and processes raw cashew nuts and
exports kernels to the Kingdom of Saudi arabia, Dubai, Finland and
Korea. The processing units have a capacity of 10 tonnes per day
(tpd).
VVF INDIA LIMITED: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: VVF (India) Limited
109, Opp. Sion Fort Garden
Sion (East)
Mumbai MH 400022
Insolvency Commencement Date: September 23, 2021
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: March 22, 2022
(180 days from commencement)
Insolvency professional: Avil Menezes
Interim Resolution
Professional: Avil Menezes
416, Crystal Paradise Co-op Soc. Ltd.
Dattaji Salvi Marg
Above Pizza Express
Off. Veera Desai Road
Andheri West
Mumbai 400053
E-mail: avil@caavil.com
irp.vvf@gmail.com
Last date for
submission of claims: October 8, 2021
=========
J A P A N
=========
SAPPORO HOLDINGS: Egan-Jones Keeps B Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company, on September 15, 2021, maintained its
'B' foreign currency and local currency senior unsecured ratings on
debt issued by Sapporo Holdings Limited. EJR also maintained its
'C' rating on commercial paper issued by the Company.
Headquartered in Tokyo, Japan, Sapporo Holdings Limited produces
and sells alcoholic and non-alcoholic beverages.
=====================
P H I L I P P I N E S
=====================
GRAND AGRI: BSP Orders Closure of 6th Problematic Bank This Year
----------------------------------------------------------------
The Philippine Star reports that the Bangko Sentral ng Pilipinas
(BSP) ordered the closure of Lucena-based Grand Agri Rural Bank
Inc., bringing to six the number of problematic banks shuttered
this year.
According to the report, BSP Deputy Governor Chuchi Fonacier said
the Monetary Board has issued a resolution prohibiting the Grand
Agri Rural Bank from doing business pursuant to Section 30 of
Republic Act 7653 or The New Central Bank Act, as amended.
The Philippine Star relates that Mr. Fonacier said the regulator
also directed the Philippine Deposit Insurance Corp. (PDIC) to take
over the closed bank and act as receiver, with a directive to
proceed with the takeover and liquidation of the rural bank in
accordance with Section 12 (a) of RA 3591 or the PDIC Charter, as
amended.
Grand Agri Rural Bank is a one-unit rural bank established in
Tayabas City, Quezon in 1996 primarily to carry and engage in the
business of extending rural credit to small farmers and tenants,
market vendors and deserving rural industries or enterprises.
Guevent Investment Development Corp. (GIDC) acquired Grand Agri
Rural Bank from its original stockholders in 2014.
Prior to the closure of the Grand Agri Rural Bank, the regulator
had ordered the closure of the Rural Bank of Datu Paglas based in
Maguindanao, Rural Bank of Caloocan, Rural Bank of Alimodian
(Iloilo) Inc., Palm Tree Bank Inc. based in Cagayan de Oro, and
Occidental Mindoro Rural Bank Inc., the Philippine Star discloses.
Last year, the regulator ordered the closure of Providence Rural
Bank, Rural Bank of Tibiao (Antique), De La O Rural Bank, San
Fernando Rural Bank and Cooperative Bank of Aurora.
According to the report, PDIC paid PHP124.11 million worth of
insurance claims for 7,072 valid deposit accounts maintained in
five banks or 76 percent of the estimated total deposit accounts of
9,305.
=================
S I N G A P O R E
=================
ANG CHENG: First Creditors' Meeting Set for Oct. 13
---------------------------------------------------
Ang Cheng Guan Construction Pte Limited will hold a first meeting
for its creditors on Oct. 13, 2021, at 11:00 a.m., via audio-visual
conference on the Zoom Platform.
Agenda of the meeting includes:
a. to receive a full statement of the company's affairs,
showing the assets and liabilities of the company;
b. to appoint a Committee of Inspection if deemed necessary;
and
c. to resolve that the books and papers of the Company be
destroyed pursuant to Section 320(2) of the Companies Act,
Cap. 50.
The company's liquidator is:
Don M Ho
C/o DHA+ pac
63 Market Street
#05-01A Bank of Singapore Centre
Singapore 048942
ASECURE PTE: Creditors' Proofs of Debt Due on Oct. 28
-----------------------------------------------------
Creditors of Asecure Pte Ltd, which is in voluntary liquidation,
are required to file their proofs of debt by Oct. 28, 2021, to be
included in the company's dividend distribution.
The company's liquidators are:
Lin Yueh Hung
Oon Su Sun
c/o 8 Wilkie Road
#03-08 Wilkie Edge
Singapore 228095
EAGLE HOSPITALITY: Committee Opposes Plan Filing Extension
----------------------------------------------------------
Emma Whitford of Law360 reports that Eagle Hospitality Group is
being uncooperative and should not be granted more time to produce
a Chapter 11 plan, a group of creditors told a Delaware bankruptcy
court, noting that they are waiting in the wings with their own
proposal. A committee of unsecured creditors, along with Bank of
America, a preparation lender agent, pushed back Thursday,
September 24, 2021, on the Debtors' request for an extension of
exclusivity through Oct. 25, 2021.
The Debtors have "focused exclusively on creating their own plan,"
the committee said, and are not likely to use any extra time for
productive negotiations.
"While the Debtors have maintained exclusivity, the Debtors have
made little progress towards consensus on a chapter 11 plan with
their creditor constituencies. The lack of advancement on plans of
liquidation that maximize recoveries for unsecured creditors is
unfortunate and stems from the Debtors continuing to take direction
from remote parties in Singapore at the expense of structurally
senior creditors at the Propco estates and the Debtors' relentless
need to pursue an aggressive, costly and litigious path in chapter
11, despite litigation offering little meaningful benefit to
unsecured creditors who are the Debtors' economic stakeholders. The
creditors' feared run-away train has become reality with
administrative claims through August 31, 2021 already exceeding
$65 million with no end in sight, even though the Debtors sold
substantially all of their assets months ago and have no
operations," the Committee and BofA said in the court filing.
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.
EAGLE HOSPITALITY: Committee, BofA Offer Alternative Plan
---------------------------------------------------------
The Official Committee of Unsecured Creditors and Bank of America,
N.A., the prepetition lender agent, disclosed a proposed framework
for an alternative plan for Eagle Hospitality Trust, et al.
The Committee and the Prepetition Agent are opposing an extension
of the Debtors' exclusive period to propose a Chapter 11 Plan. They
aver that the Debtors have sold substantially all of their assets
and no unresolved contingencies exist that support extending or
otherwise continuing exclusivity.
Their term sheet reflects a settlement that reduces the likelihood
of expensive litigation, and which the Prepetition Agent and
Creditors Committee believe will produce chapter 11 plans that
enhance the overall recoveries by creditors.
Unlike the Debtors' plan proposal, the Committee asserts the
Creditor Plan Term Sheet enjoys broad support and is focused on
reigning in otherwise unbridled administrative expenses and
minimizing execution risk both of which will be the result of
unnecessary litigation which the Debtors would seek to pursue
leading up to confirmation of the plans of liquidation.
The Committee and BofA do not believe that the filing of the
Creditor Plan Term Sheet would violate any provisions of the
Bankruptcy Code. However, out of an abundance of caution, they
have sought approval to file the Creditor Plan Term Sheet under
seal.
According to the Committee, among other things, the Creditor Plan
Term Sheet provides for:
a. an agreed reallocation of value (principally, cash from the
Propco asset sales) among the Debtors' creditors and their various
estates, with guaranteed minimum distributions to both lenders and
other unsecured creditors;
b. a consensual resolution of certain contested, fact-intensive
matters, such as substantive consolidation and privity for a
majority of creditors, both of which have been identified by the
Debtors as gating items to be litigated prior to confirmation under
the Debtors' proposed chapter 11 plans;
c. a path to emergence from the chapter 11 cases by the end of
2021 designed to preserve, to the maximum extent possible, the
Debtors' evaporating resources for distribution to creditors which
has already in significant part been liquidated into cash through
the asset sales; and
d. the establishment of a liquidating trust to administer the
chapter 11 cases, handle claims administration process, pursue
causes of action, and make plan distributions post-emergence,
pursuant to a budget that will be agreed by the plan proponents.
According to the Committee and BofA, the Creditor Plan Term Sheet
describes a material settlement among the direct beneficiaries of
the assets sold in these cases that reallocates value, as part of a
holistic settlement, to all unsecured creditors of the
property-owning Debtors. At the same time, the Creditor Plan Term
Sheet preserves the ability of creditors of other Debtors to
recover from separate asset values that may be available at those
estates.
Counsel to the Official Committee of Unsecured Creditors:
Jeffrey R. Waxman, Esq.
Eric J. Monzo, Esq.
Brya M. Keilson, Esq.
MORRIS JAMES LLP
500 Delaware Avenue, Suite 1500
Wilmington, DE 19801
Telephone: (302) 888-6800
Facsimile: (302) 571-1750
E-mail: jwaxman@morrisjames.com
E-mail: emonzo@morrisjames.com
E-mail: bkeilson@morrisjames.com
- and -
Adam C. Rogoff, Esq.
Robert T. Schmidt, Esq.
Douglas Buckley, Esq.
KRAMER LEVIN NAFTALIS & FRANKEL LLP
1177 Avenue of the Americas
New York, NY 10036
Telephone: (212) 715-9100
Facsimile: (212) 715-8000
E-mail: arogoff@kramerlevin.com
rschmidt@kramerlevin.com
dbuckley@kramerlevin.com
Counsel to Bank of America, N.A.:
Mark D. Collins, Esq.
Brendan J. Schlauch, Esq.
RICHARDS, LAYTON & FINGER, PA
One Rodney Square
920 North King Street
Wilmington, DE 19801
Tel: (302) 651-7700
Fax: (302) 651-7701
E-mail: collins@rlf.com
schlauch@rlf.com
- and -
Sabin Willett, Esq.
MORGAN, LEWIS & BOCKIUS LLP
One Federal Street
Boston, MA 02110-1726
Tel: (617) 341-7000
Fax: (617) 341-7701
E-mail: sabin.willett@morganlewis.com
- and -
Jennifer Feldsher, Esq.
MORGAN, LEWIS & BOCKIUS LLP
101 Park Avenue
New York, NY 10178-0060
Tel: (212) 309-6000
Fax: (212) 309-6001
Email: jennifer.feldsher@morganlewis.com
- and -
David M. Riley, Esq.
MORGAN, LEWIS & BOCKIUS LLP
2049 Century Park East
Los Angeles, CA 90067
Tel: (310) 907-1000
Fax: (310) 907-1001
E-mail: david.riley@morganlewis.com
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.
EZION HOLDINGS: Posts US$6.4MM for Half-Year Ended June 30
----------------------------------------------------------
The Business Times reports that struggling offshore and marine
company Ezion Holdings reversed out of the red with net profit of
US$6.4 million for the half-year ended June 30, compared to a net
loss of US$238.1 million.
Revenue fell 54 per cent to US$6.8 million in H1, from US$14.6
million in the corresponding period a year ago. This was mainly due
to the divestment of two liftboats during the period.
But the company eked out a gross profit of US$0.5 million, compared
to a gross loss of US$6.7 million in the year-ago period, due to
lower depreciation expense and lower operating costs following the
divestment of the liftboats, BT discloses.
In a bourse filing on Sept. 28, the group said it forecasts that
the cash flows from continuing businesses are sufficient to meet
its working capital needs in the next 12 months, but not to meet
its loan and interest obligations.
It added that it remains committed to seek third party investors to
re-capitalise the company, and to negotiate a debt restructuring
plan with existing lenders, BT relays.
According to BT, the group said it has received three letters to
date from external third parties expressing interest towards
investing in the company, and will evaluate the proposals.
Trading in Ezion shares has been suspended since March 2019, the
report notes.
About Ezion Holdings
Based in Singapore, Ezion Holdings Limited
--http://www.ezionholdings.com/-- an investment holding company,
develops, owns, and charters offshore assets to support the
offshore energy markets in Singapore, India, Brunei, Thailand, the
Middle East, Nigeria, and internationally. The company operates
through Liftboats, Jack-Up Rigs, Offshore Support Logistics
Services, and Others segments. It owns, charters, and manages rigs
and vessels involved in the production, maintenance, and
exploration phases of the oil and gas, and offshore windfarm
industries. The company also provides shipping agency and
management services, as well as undertakes engineering works;
financing services; and cargo transportation services. In addition,
it holds assets or investments involved in renewable energy, and
other oil and gas related industries.
As reported in the Troubled Company Reporter-Asia Pacific on Oct.
21, 2020, Ezion Holdings on Oct. 19 announced its restructuring
plan to refocus its business on the provision of vessel-management
services, following a strategic review of its options in
consultation with major lenders. According to The Business Times,
the company said that it will take steps to realise value by
disposing of its vessels in an orderly manner over a period of
time; this will enable it to better manage its cashflow constraints
by reducing the holding costs of the vessels as well as the amount
of liabilities. It will also implement further cost-cutting
measures in line with business requirements and continue the search
for potential investors to recapitalise the group and realise the
value of the listed status of the company, on the basis of a
vessel-management company.
The company has appointed RSM Corporate Advisory as corporate
restructuring advisor to oversee the implementation of the
restructuring plan over the course of the next year and will in due
course hold an informal meeting for securities holders.
OCEANUS GROUP: Exits SGX Watch List After Nearly Six Years
----------------------------------------------------------
The Business Times reports that Oceanus Group has exited the
Singapore Exchange's (SGX) watch list since being put on it nearly
six years ago on Dec. 14, 2015.
In a press statement on Sept. 29, the seafood supplier said it had
demonstrated profitability since the second quarter of 2020, BT
relates.
It hit a record turnover and net profit in H1 2021. Total revenue,
which stood at SGD52.5 million, was 6.5 times the SGD8 million
recorded the year before.
Meanwhile, net profit was SGD5 million, seven times the SGD700,000
recorded in the year-ago period. Its total market capitalisation
stood at SGD826.1 million as at Sept. 28, BT discloses.
According to the report, SGX's financial exit criteria indicate
that firms may be removed from the watch list if they record
consolidated pre-tax profit for the most recently completed
financial year, and post an average daily market capitalisation of
at least SGD40 million over the last six months.
Oceanus has been granted four extensions to date to exit the watch
list, the report notes. Its fourth extension lasted 19 months until
March 1 this year, with effect from the expiry of the third
extension on July 31, 2019. It subsequently submitted its
application to exit the watch list on April 13, 2021.
Oceanus Group Limited operates as a holding company. The Company,
through its subsidiaries, engages in the farming, processing,
packaging, and distribution of seafood products. Oceanus Group
serves aquaculture farming and seafood industries worldwide.
PETRA I: Members' Final Meeting Set for Oct. 28
-----------------------------------------------
Members of Petra I Pte Ltd will hold their final meeting on Oct.
28, 2021, at 11:00 a.m., via video conferencing platform (Microsoft
Team or Zoom).
At the meeting, the company's liquidator, will give a report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Chan Yee Hong
c/o Nexia TS Risk Advisory Pte Ltd
80 Robinson Road
#25-00
Singapore 068898
=============
V I E T N A M
=============
SAIGON-HANOI COMMERCIAL: Moody's Rates $500MM MTN Drawdown 'B2'
---------------------------------------------------------------
Moody's Investors Service has assigned a B2 rating to the
USD-denominated senior unsecured debt proposed by Saigon - Hanoi
Commercial Joint Stock Bank (SHB, B2 stable, b3) under its $500
million medium-term note (MTN) program.
The rating outlook is stable.
The assigned rating was based on draft documents reviewed by
Moody's, which Moody's does not expect to be materially different
from those in the final documentation.
RATINGS RATIONALE
The assigned rating and stable outlook are in line with SHB's
foreign currency long-term issuer rating and outlook, and reflect
the structure of the issuance. The bonds will constitute the
direct, unconditional, unsubordinated and unsecured obligations of
SHB and will rank pari passu among themselves.
SHB's B2 ratings are based on the bank's improved asset quality
that is offset by higher asset risk because of the pandemic, weaker
than peer capital, modest profitability, moderate funding and
liquidity, as well as Moody's expectation of a moderate probability
of support from the Government of Vietnam (Ba3 positive) in times
of need. The latter translates into a one-notch uplift from the
bank's b3 Baseline Credit Assessment (BCA).
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Moody's could upgrade SHB's ratings if there is (1) continued
improvement in the bank's asset quality and (2) an increase in the
bank's capital, with its tangible common equity/Moody's adjusted
risk-weighted assets (TCE/RWA) sustainably above 7.5%.
Conversely, Moody's could downgrade SHB's ratings if its asset
quality significantly deteriorates, leading to the erosion of its
profitability and capital. Specifically, a decline in the bank's
TCE/RWA to below 5% and in its net income/tangible assets to below
0.4% will exert negative pressure on the BCA. Any weakening in
SHB's funding and liquidity will also be negative.
PRINCIPAL METHODOLOGY
The principal methodology used in this rating was Banks Methodology
published in July 2021.
Headquartered in Hanoi, Vietnam, Saigon - Hanoi Commercial Joint
Stock Bank (SHB) reported total assets of VND459 trillion (USD20
billion) at June 30, 2021.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2021. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***