/raid1/www/Hosts/bankrupt/TCRAP_Public/150205.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, February 5, 2015, Vol. 18, No. 025
Headlines
A U S T R A L I A
DENIM ENTERPRISES: First Creditors' Meeting Set For Feb. 11
GLOBAL STADIUM: First Creditors' Meeting Set For Feb. 11
JOSH GOOT: In Voluntary Admin.; 1st Creditors Meeting on Feb. 12
QUEENSLAND IRISH: Remains Open Despite Administration
TOTAL JOINERY: First Creditors' Meeting Slated For Feb. 11
VAN EYK RESEARCH: Collapse Leaves Investors AUD20MM Out of Pocket
C H I N A
CHINA AUTOMATION: Moody's Lowers CFR & Senior Bond Rating to B1
CHINA ORIENTAL: Moody's Lowers CFR & Sr. Unsecured Rating to Caa1
CHINA RECYCLING: Receives NASDAQ Bid Price Deficiency Notice
GLORIOUS PROPERTY: Privatization No Impact on Moody's Caa1 CFR
SHIMAO PROPERTY: Moody's Rates Proposed US$ Bonds 'Ba3'
SHIMAO PROPERTY: S&P Assigns 'BB-' Rating to Prop. US$ Notes
SUNAC CHINA: Planned Acquisition to Boost Presence, Fitch Says
XIWANG SPECIAL: S&P Assigns 'BB-' CCR; Outlook Stable
* CHINA: 69 Troubled P2P Lending Platforms Reported in Jan. 2015
I N D I A
AGGARWAL RICE: CRISIL Suspends B Rating on INR145MM Cash Credit
AJAY PROTECH: ICRA Reaffirms B+ Rating on INR15cr Cash Credit
BALLARPUR INDUSTRIES: Fitch Affirms 'B+' IDR; Outlook Stable
BANSAL BROTHERS: CRISIL Ups Rating on INR57.5MM Cash Credit to B
BATANAGAR EDUCATION: CRISIL Reaffirms B- Rating on INR130MM Loan
BHARAT SCRAP: ICRA Assigns B Rating to INR2.5cr LT Loan
BORSE BROTHERS: CRISIL Assigns B Rating to INR93.7MM Term Loan
BP PLYBOARD: CARE Assigns B+ Rating to INR10.71cr LT Bank Loan
BSK AGENCIES: CRISIL Suspends B Rating on INR100MM Bank Loan
CDP (INDIA): ICRA Reaffirms B+ Rating on INR15cr Cash Credit
COCHIN VENEERS: CRISIL Reaffirms B Rating on INR10.6MM Cash Loan
ENTRACO POWER: CRISIL Assigns B Rating to INR45MM Cash Credit
EVERSHINE MOULDERS: CRISIL Suspends B Rating on INR50MMM Loan
FEEDPRO AGRO: CRISIL Suspends B+ Rating on INR31.5MM Term Loan
FLOCKSUR INDIA: ICRA Assigns B+ Rating to INR10cr Fund Based Loan
GM REDDY: CRISIL Suspends B- Rating on INR75MM Cash Credit
GOWRI INFRA: ICRA Suspends B- Rating on INR50.74cr LT Loan
HIMALAYA MEDITEK: CRISIL Suspends B Rating on INR60MM Cash Loan
KVK GRANITES: ICRA Reaffirms B- Rating on INR1.81cr Term Loan
LEGNO DOOR: ICRA Suspends D Rating on INR6cr Bank Loan
MASS INFRASTRUCTURE: CRISIL Suspends D Rating on INR130MM Loan
MCP INDUSTRIAL: CRISIL Suspends D Rating on INR67MM LT Loan
MILLENIUM PAPERS: ICRA Suspends B+ Rating on INR16cr Cash Credit
NAJ JEWELLERY: CRISIL Suspends B+ Rating on INR200MM Cash Credit
NAVKETAN ROLLER: ICRA Reaffirms B+ Rating on INR7cr Cash Credit
NEW RISHIKESH: ICRA Suspends D Rating on INR5.25cr LT Loan
OMEGA INFRAENGINEERS: CRISIL Rates INR10MM Cash Credit at 'B+'
PARAS NUTRITIONS: CRISIL Assigns B Rating to INR55MM Cash Credit
PUJA INDUSTRIES: CRISIL Reaffirms B Rating on INR60MM Term Loan
RELYON PACKS: CRISIL Assigns B- Rating to INR40MM Cash Credit
SARDAR INDUSTRIES: CRISIL Assigns B+ Rating to INR80MM Cash Loan
SARVOTTAM ENTERPRISE: ICRA Suspends B+ Rating on INR7cr Cash Loan
SATYAWATI RICE: CRISIL Reaffirms B Rating on INR145MM Cash Loan
SHIUR SAKHAR: CRISIL Suspends B Rating on INR450MM Term Loan
SHIVAM COTTEX: ICRA Reaffirms B+ Rating on INR6cr Cash Credit
SHREE PARASHNATH: CARE Revises Rating on INR174.54cr Loan to B
SRI BHAVANI: CRISIL Assigns B+ Rating to INR50MM Cash Credit
SRI SARAVANA: ICRA Cuts Rating on INR16cr Fund Based Loan to D
SUNIL TRADE: CRISIL Assigns B+ Rating to INR70MM Cash Credit
SURYA VIJAY: CRISIL Suspends B+ Rating on INR20MM Cash Loan
TARAK TEXTILES: CRISIL Suspends D Rating on INR80MM Cash Credit
TONMOY GOHAI: CRISIL Suspends C Rating on INR200MM Term Loan
VEDANT HOSPITAL: CRISIL Suspends D Rating on INR43MM LOC
VIDARBHA WINDING: CRISIL Cuts Rating on INR110MM Loan to 'D'
VISHWAS BAWA: CRISIL Suspends B Rating on INR60MM Overdraft Loan
I N D O N E S I A
CIKARANG LISTRINDO: S&P Affirms 'BB-' CCR; Outlook Stable
SOLUSI TUNAS: Fitch Assigns 'BB-' IDR; Outlook Stable
J A P A N
MT. GOX: Bitcoinica Liquidators Soon to Make NZ$23-Mln Claim
SKYMARK AIRLINES: Eyes Another Airline's Help for Rehabilitation
N E W Z E A L A N D
LOWIE RECRUITMENT: In Liquidation; Owes IRD Nearly NZ$1 Million
- - - - -
=================
A U S T R A L I A
=================
DENIM ENTERPRISES: First Creditors' Meeting Set For Feb. 11
-----------------------------------------------------------
Gess Michael Rambaldi and Andrew Reginald Yeo of Pitcher Partners
were appointed as administrators of Denim Enterprises Pty Ltd (ATF
The Denim Enterprises Pty Ltd) on Feb. 2, 2015.
A first meeting of the creditors of the Company will be held at
Level 19, 15 William Street, in Melbourne, on Feb. 11, 2015, at
4:00 p.m.
GLOBAL STADIUM: First Creditors' Meeting Set For Feb. 11
--------------------------------------------------------
Giovanni Maurizio Carrello and Mathieu Tribut of BRI Ferrier
Western Australia were appointed as administrators of Global
Stadium Events Pty Ltd on Jan. 30, 2015.
A first meeting of the creditors of the Company will be held at
Suite 3, Level 1, 99-101 Francis Street, in Northbridge, West
Australian, on Feb. 11, 2015, at 10:00 a.m.
JOSH GOOT: In Voluntary Admin.; 1st Creditors Meeting on Feb. 12
----------------------------------------------------------------
SmatCompany reports that high-profile fashion designer Josh Goot
has placed his eponymous label in voluntary administration in a
bid to withstand the "well-documented difficult trading conditions
in the fashion industry".
Michael Smith and Peter Hillig of Smith Hancock were appointed
administrators of Josh Goot on February 2.
Goot founded the label in 2005. SmartCompany says the business
currently operates two retail stores, in Paddington in Sydney and
Armadale in Melbourne, along with a wholesale business, and all
parts of the business are expected to continue to trade throughout
the administration process.
Goot's designs are regularly seen on Australian and international
celebrities including Kim Kardashian, Lara Bingle and Mia
Wasikowska at red carpet events, according to SmartCompany.
Josh Goot designs have been exhibited at fashion weeks in New York
and London, while local shoppers can also purchase clothing from
the label at David Jones, the report relays.
In a statement issued to SmartCompany, Mr. Goot said the aim of
the administration is to "restructure to protect the long-term
interests of the brand and all involved".
"The retail market has witnessed a prolonged downturn since the
GFC in 2008 and we are proud that we have been able to sustain and
grow the business throughout the challenging period, while
manufacturing exclusively in Australia," SmartCompany quotes
Mr. Goot as saying.
Mr. Goot said he intends to continue the label, post
administration, SmartCompany relays.
"Over the last 10 years, we have built a coveted designer label
that is recognised and respected the world over," Mr. Goot, as
cited by SmartCompany, said. "We aim to continue building that
business with our investors, staff and trade partners, for many
years to come."
A first meeting of the creditors of the Company will be held at
the offices of Smith Hancock Chartered Accountants, Level 4 88
Phillip Street, in Parramatta, New South Wales on Feb. 12, 2015,
at 10:00 a.m.
QUEENSLAND IRISH: Remains Open Despite Administration
-----------------------------------------------------
Brisbane Times reports that the Brisbane Irish Club has been
placed into voluntary administration and three directors have
resigned amid ongoing financial difficulties.
In a memorandum published on the Queensland Irish Association's
website, company secretary Paul Hogan wrote that the new board,
appointed in November 2014, had been attempting to monitor the
QIA's financial position, according to Brisbane Times.
"The Board has encountered difficulties in becoming fully seized
of the extent of the financial circumstances of the company," Mr.
Hogan wrote, the report notes.
"Mindful of their duties, responsibilities and obligations under
the Corporations Law, the Board resolved that the QIA was, or was
likely in the future, to be insolvent and resolved to appoint a
voluntary administrator," Mr. Hogan added, the report relates.
The report discloses that a separate memo announced the
resignation of President Seamus Sullivan and directors Noela
McCormick and Pauline Donegan for health reasons.
The QIA was founded in 1898 and has been in its Elizabeth Street
headquarters, Tara House, since 1920.
However it's understood extensive renovations in recent years have
contributed to the QIA's money troubles, with debts believed to be
at least AU$3 million, the report relays.
The report notes that musician Sarah Calderwood from Brisbane
Irish band Sunas said the changes had backfired spectacularly.
"They were trying to bring in younger people, but they basically
turned the ground floor of the club into an RSL," the report
quoted Ms. Calderwood as saying. "It was big screens, keno . . .
they lost that classic Cead Mile Failte, the '100 Thousand
Welcomes' that the club is classically known for," Ms. Calderwood
added.
The report says that Mr. Hogan's memo stated that all facilities
would remain open to members and guests.
The report notes that Ms. Calderwood said she hoped the annual St
Patrick's parade would continue.
"But if the club is AU$3 million in debt, how are they going to
recoup their costs?" the report quoted Ms. Calderwood as saying.
TOTAL JOINERY: First Creditors' Meeting Slated For Feb. 11
----------------------------------------------------------
Bradley Tonks & John Vouris of PKF Lawler were appointed as
administrators of Total Joinery Pty Ltd on Jan. 30, 2015.
A first meeting of the creditors of the Company will be held at
Level 8, 1 O'Connell Street, in Sydney, on Feb. 11, 2015, at
2:00 p.m.
VAN EYK RESEARCH: Collapse Leaves Investors AUD20MM Out of Pocket
-----------------------------------------------------------------
Andrew Main at The Australian reports that it is now more than
three months since the van Eyk Research funds management group was
liquidated but there is still more than AUD20 million of mostly
retail investors' funds that haven't been repaid, according to
insiders familiar with the situation.
Investors in 10 of the 14 Blueprint funds that were formerly
managed by van Eyk have now been mostly refunded 100 per cent, but
four funds affected by a reported problem with illiquidity in
August, worth about AUD150 million at their peak, are still in a
form of limbo, The Australian relates.
Those investors are mostly retail clients saving for their
retirement, the report says.
And shareholders in van Eyk aren't going to be any happier either.
According to The Australian, the once highly respected Sydney-
based research house and fund manager's total business was worth
about AUD30 million three years ago but since it collapsed in
October last year, liquidator Trent Hancock is understood to have
found he won't be able to return anything of consequence to
shareholders.
Van Eyk had three arms, the third being a group of businesses in
New Zealand, the report notes.
The Australian relates that since the date of liquidation on
October 21, Mr. Hancock, from accountants Moore Stephens, and his
colleague Tom Lesnikowsi have found buyers for the research arm in
Australia and the New Zealand businesses, but the funds management
arm has a value now of zero.
The Australian says the recent death of respected New Zealand
hedge fund manager Rob Holroyd in Auckland appears to be one of
the most poignant consequences of the collapse.
According to the report, Mr. Holroyd had been operating out of Zug
in Switzerland investing some AUD60 million to AUD70 million from
the Blueprint series, on a mandate that represented about a third
of his total business.
That mandate was effectively withdrawn overnight from his
Commodity Strategies NV business in September last year because
the illiquidity issue, which caused the official gatekeepers of
the funds, Macquarie Investment Management, to have to close down
all 14 funds, The Australian states.
There is no suggestion Macquarie's action caused his death, but
the demise of van Eyk in general was clearly a factor, the report
notes.
The Australian recalls that four funds were initially suspended in
August last year by Macquarie because of a supposedly illiquid
investment, but the snowballing reputational effect meant that
within a very short time the whole slate of funds had to be
terminated because of a rush by investors to get their money back.
The van Eyk liquidators haven't made a formal report to creditors
about the sale of van Eyk's assets, but The Australian understands
they have signed up buyers for both of the defunct company's
extant business units, obtaining about AUD2 million for the New
Zealand businesses and about AUD1m for the research business,
which is being bought by one-time rival Lonsec, controlled by
investor and entrepreneur Mark Carnegie.
Lonsec is understood to be initially paying AUD500,000 upfront
with further payments later, says The Australian.
Unfortunately, there is about AUD3 million in outstanding claims
by creditors, which is why van Eyk shareholders are not expected
to get any payout from the disaster by the time the liquidator is
paid, the report adds.
As reported in the Troubled Company Reporter-Asia Pacific on
Oct. 23, 2014, The Australian said van Eyk Research has
been put into liquidation on the recommendation of an
administrator. The Australian related that administrator Trent
Hancock, from Sydney accountants Moore Stephens, said corporate
regulator ASIC had been investigating the group's financial
failure, as had the Financial Markets Authority in New Zealand,
where it also has operations.
Van Eyk went into administration in September 2014 after Macquarie
Investement Management, which was acting as responsible entity for
the Blueprint series of funds, terminated all but one of the 14-
fund series after a run on redemptions by investors that started
in August. Macquarie had declared three of the funds
to be "illiquid", according to The Australian.
=========
C H I N A
=========
CHINA AUTOMATION: Moody's Lowers CFR & Senior Bond Rating to B1
---------------------------------------------------------------
Moody's Investors Service has downgraded China Automation Group
Limited's corporate family and senior unsecured bond ratings to B1
from Ba3.
The ratings outlook is stable.
The rating action follows the company's profit warning on 29
January for its 2014 full-year results.
Ratings Rationale
"The ratings downgrade primarily reflects China Automation's
weaker growth prospects and Moody's concerns over the quality of
its receivables," says Chenyi Lu, a Moody's Vice President and
Senior Analyst.
According to the company, the deterioration in its performance was
largely driven by: (1) weak economic growth in China and lower oil
prices leading to soft demand from the petrochemical and coal
chemical industries, two of its key end-markets; (2) foreign
exchange losses; and (3) an increase in net bad debt expenses from
RMB60 million in 2013. The company incurred such sizeable bad debt
expenses for the consecutive three years since 2012.
Moody's expects the challenging operating environment for its main
end-markets to persist over the next 1-2 years, leading to a low
single-digit decline in its annual revenue growth. This situation
should also keep its profitability low.
Moody's also notes that China Automation increasingly relies on
the petrochemical and coal chemical industries for revenue
generation, a credit negative given the current tough conditions
in both sectors. The two industries accounted for 76% of its total
revenue in 1H 2014, up from 53% in 2011.
In addition, the persistence of sizeable bad debt expenses over
the last few years raises questions about the quality of China
Automation's trade receivables. Moody's expects the company's
receivables days will remain lengthy, in turn pressuring its
operating cash flow and constraining its ability to deleverage.
Given the weak revenue growth and cash flow, Moody's expects China
Automation's adjusted debt/EBITDA to remain elevated at about 4.5x
over the next 12-18 months, slightly down from an estimated 4.6x
for 2014. This level of leverage is more consistent with the B1
rating category.
China Automation's B1 corporate family rating continues to reflect
its leading position in providing safety and critical control
systems to the Chinese petrochemical and railway sectors.
These strengths are counterbalanced by its small scale and weak
and volatile cash flows, due to its high working capital
requirements.
In terms of liquidity, China Automation has sizeable debt of
RMB1.2 billion maturing in April 2016, which moderately exceeds
its cash holdings and committed back-up credit facilities.
However, Moody's expects the company will be able to fund such
shortfall in the financial markets given its established market
position and banking relationships.
The stable rating outlook reflects Moody's expectations that China
Automation will maintain its robust market share and stable key
financial metrics.
Upward pressure on the ratings could emerge over the medium term
if the company: (1) reduces its debt by containing its working
capital requirements to a moderate level; and (2) improves its
profitability, such that its adjusted debt/EBITDA stays below
3.7x-4.0x and adjusted EBITDA/interest exceeds 3.0x on a sustained
basis.
The ratings could be downgraded if: (1) the company's market
position weakens materially; (2) its profitability is pressured
further; (3) its liquidity position deteriorates significantly;
and/or (4) its debt leverage increases materially due to
aggressive acquisitions or increased working capital deficits.
Financial metrics that Moody's would consider for a downgrade
include debt/EBITDA exceeding 5.0x-5.5x, and adjusted
EBITDA/interest below 2.0x-2.2x on a sustained basis.
The principal methodology used in this rating was Global
Manufacturing Companies published in July 2014.
China Automation Group Limited specializes in providing safety and
critical control systems for the railways signaling and
petrochemicals industries in China.
The company began its operations in 1999 and was listed on the
Main Board of the Stock Exchange of Hong Kong Limited in July
2007. Its three founders collectively owned 44.89% of the firm at
end-2013.
CHINA ORIENTAL: Moody's Lowers CFR & Sr. Unsecured Rating to Caa1
-----------------------------------------------------------------
Moody's Investors Service has downgraded China Oriental Group
Company Limited's corporate family rating and senior unsecured
rating to Caa1 from B2.
The ratings outlook is negative.
Ratings Rationale
"The ratings downgrade reflects the heightened level of
refinancing risk facing China Oriental, given the limited progress
so far in addressing the approaching maturity of its USD490
million bond in August 2015," says Franco Leung, a Moody's Vice
President and Senior Analyst.
"The company's weak liquidity and the persistent dispute between
its two major shareholders add to the refinancing risk," adds
Leung.
Given its low cash holdings and inadequate cash flow from
operations, China Oriental's ability to tap external funding --
via offshore bond markets, onshore bank facilities or discounting
bank acceptance notes -- is essential to prevent a default on the
maturing bond in August.
However, Moody's expects any progress in refinancing the bond to
be slow over the next few months. This expectation means that the
company's ability to refinance such a large amount of debt will be
highly subject to the conditions in the financial markets, which
can be both temporarily volatile and tight.
The situation is exacerbated by its weakened financial metrics
over the last few years, the already tighter lending policies
exhibited by domestic banks towards the steel industry, as well as
continuing legal dispute over its public float and the consequent
suspension of trading in its stock.
Moody's notes that China Oriental's major shareholders, Mr. Han
Jingyuan and ArcelorMittal (Ba1 negative), aim to restore the
company's free float rate through the issuance of new shares.
However, the final agreement and timing of this issuance are
uncertain.
The aforementioned refinancing risk is not adequately mitigated by
the company's largely unpledged asset base and long-term relations
with onshore banks, backed in turn by its established position in
the domestic steel industry.
In terms of operating performance, Moody's estimates that China
Oriental's adjusted debt/EBITDA for 2014 remained elevated at
about 4.8x, similar to the 5.1x in 2013. Moody's anticipates a
limited improvement in its operating performance and debt leverage
in the next 12 months, given the challenging state of industry
fundamentals.
The negative outlook primarily reflects the heightened level of
refinancing risks for its offshore bonds over the next couple of
months.
An upgrade is unlikely, given the negative outlook. Moody's could
change the ratings outlook to stable, if the company makes
progress towards arranging refinancing of its USD notes.
The rating will be under pressure for further downgrade if the
company fails to make material progress toward refinancing its USD
notes due in August 2015.
The principal methodology used in this rating was Global Steel
Industry published in October 2012.
China Oriental Group Company Ltd, with total steel manufacturing
capacity of 11 million tonnes per annum, mainly manufactures H-
section steel products and hot rolled strips/strip products at its
steel mills in Hebei Province. The company listed on the Hong Kong
Stock Exchange in 2004. It is 45%-owned by its founder, Mr. Han
Jingyuan, and 29.6% by ArcelorMittal.
The Local Market Analyst for this rating is Jiming Zou, +86 (21)
6101-0381.
CHINA RECYCLING: Receives NASDAQ Bid Price Deficiency Notice
------------------------------------------------------------
China Recycling Energy Corp., an industrial waste-to-energy
solution provider in China, on Feb. 2 disclosed that it received
notice from Nasdaq's Listing Qualifications Department indicating
that the closing bid price of the Company's common stock was below
the minimum requirement of US$1.00 per share for 30 consecutive
business days and the Company was therefore not in compliance with
NASDAQ listing rule 5450(a)(1).
Pursuant to listing rule 5810(c)(3)(A), the Company has 180
calendar days, or until July 27, 2015, to regain compliance with
the minimum bid price rule. If, at any time during the 180-day
period the closing bid price per share of the Company's common
stock is US$1.00 or above for a minimum of ten consecutive
business days, the Nasdaq staff will provide written confirmation
of compliance and this matter will be closed.
The Company is currently looking into various options available
with respect to regaining such compliance. The notification
letter has no effect at this time on the listing of the Company's
common stock on The NASDAQ Global Market. CREG's common stock
will continue to trade on The NASDAQ Global Market under the
symbol "CREG".
About China Recycling Energy Corp.
Based in Xi'an, China, China Recycling Energy Corp. (NASDAQ:CREG)
-- http://www.creg-cn.com-- provides environmentally friendly
waste-to-energy technologies to recycle industrial byproducts for
steel mills, cement factories and coke plants in China.
Byproducts include heat, steam, pressure, and exhaust to generate
large amounts of lower-cost electricity and reduce the need for
outside electrical sources.
GLORIOUS PROPERTY: Privatization No Impact on Moody's Caa1 CFR
--------------------------------------------------------------
Moody's Investors Service says that the possible privatization of
Glorious Property Holdings Limited would -- if it occurs -- be
credit negative, but sees no immediate impact on its Caa1
corporate family and Caa2 senior unsecured ratings.
The ratings outlook remains negative.
On 2 February 2015, trading in Glorious' ordinary shares on the
Stock Exchange of Hong Kong was suspended, pending the release of
an announcement by the company regarding its possible
privatization by its controlling shareholder.
The controlling shareholder, Mr. Zhang Zhi Rong, owns 68.39% of
the company, and also has a shipbuilding company listed in Hong
Kong.
His last attempt to privatize Glorious in 2013 was unsuccessful.
"The possibility of privatization and privatization itself could
reduce the company's financial flexibility by constraining its
access to the capital markets," says Gerwin Ho, a Moody's Vice
President and Senior Analyst.
Moody's believes such reduced financial flexibility -- and
assuming privatization occurs -- would increase pressure on its
already high level of refinancing risk over the next 12 months.
Moody's notes that Glorious has USD300 million senior unsecured
notes due 2015 and USD400 million due 2018, but does not believe
that privatization would likely trigger any payment acceleration.
"Glorious' debt maturity profile remains one of the weakest among
Moody's-rated Chinese property developers. The company had a cash
balance of RMB1.7 billion at end-June 2014, which can only cover
33% of its short-term debt of RMB5.0 billion," adds Ho, also the
lead analyst for the company.
Glorious' liquidity risk remains high due to its weak level of
sales in 2014. It reported contracted sales of RMB4.0 billion in
2014, or a year-on-year decline of 45%.
Moody's expects privatization itself could weaken financial
disclosure. Furthermore, it could undermine Glorious' corporate
governance structure, weakening protection for bond investors.
In addition, the company's loss of its listing status could reduce
its attractiveness to potential investors.
The principal methodology used in this rating was Global
Homebuilding Industry published in March 2009.
Glorious Property Holdings Limited is a medium-sized residential
property developer based in Shanghai. The company has expanded to
eastern and northern China. At end-June 2014, it had a land bank
with a gross floor area ("GFA") of around 15.0 million square
meters in Shanghai, Beijing, Tianjin, and in several second- and
third-tier cities in the Yangtze River Delta and northeast China.
Glorious listed on the Stock Exchange of Hong Kong in 2009.
SHIMAO PROPERTY: Moody's Rates Proposed US$ Bonds 'Ba3'
-------------------------------------------------------
Moody's Investors Service has assigned a Ba3 senior unsecured debt
rating to the USD bonds proposed by Shimao Property Holdings
Limited.
The rating outlook is stable.
The proceeds from the proposed USD bonds will be used to refinance
Shimao's outstanding debt, fund existing and new projects, and for
general working capital requirements.
Ratings Rationale
"The proposed bonds will further strengthen Shimao's liquidity
position, help fund its business expansion, and lengthen its debt
maturity profile," says Franco Leung, a Moody's Vice President and
Senior Analyst.
This additional liquidity could also help to prefund the company's
land acquisitions and repay some existing debt in order to reduce
average interest costs.
At June 30, 2014, Shimao's cash on hand totaled RMB21.1 billion.
This cash balance, together with a four-year syndicated loan of
USD736 million taken out in July 2014, adequately covers its
short-term debt of RMB12.7 billion that is maturing over the next
12 months, and its committed land payment obligations.
Shimao achieved contracted sales of RMB70.2 billion in 2014, a 5%
year-on-year increase. Despite slow contracted sales growth, its
cash to short-term debt was at 167% at 30 June 2014, largely
unchanged from 166% at the end of 2013.
"After the bond issuance, Shimao's debt leverage in the next 12-18
months will remain at levels appropriate for its Ba2 corporate
family rating," says Leung, also the Lead Analyst for Shimao.
Moody's expects Shimao's revenue/debt ratio for the next 12 -- 18
months to be above 90% which will support its Ba2 rating.
Its revenue grew at a faster pace than gross debt, which rose to
RMB54.7 billion at 30 June 2014 from RMB49.3 billion at the end of
2013.
Shimao's Ba2 corporate family rating continues to reflect its (1)
diversified and well-located land bank; (2) pricing flexibility in
view of its low-cost land bank, and (3) high-quality investment
properties portfolio.
Upward rating pressure could emerge if Shimao (1) continues to
deliver robust sales growth; (2) maintains strong liquidity and
good access to domestic and offshore bank and capital markets; (3)
shows prudent financial management and land acquisitions.
Credit metrics indicative of upgrade pressure include EBITDA
interest coverage above 4.0x and revenue/debt above 115%-120% on a
sustained basis.
On the other hand, downward rating pressure could emerge if (1)
the company is unable to sustain its solid sales track record; (2)
its liquidity position weakens; or (3) it embarks on aggressive
land acquisitions funded by debt.
Credit metrics indicative of downgrade pressure include EBITDA
interest coverage below 3x or revenue/debt below 85%-90% on a
sustained basis.
The principal methodology used in this rating was Global
Homebuilding Industry, published in March 2009.
Shimao Property Holdings Limited is a Grand Cayman-incorporated
Chinese property developer listed on the Hong Kong Stock Exchange
in July 2006. Together with its 64%-owned Shanghai A-share listed
subsidiary, Shanghai Shimao Co Ltd (unrated), the company has an
attributable land bank of 36.9 million square meters distributed
across more than 40 cities at 30 June 2014, mainly in eastern and
northeastern China.
SHIMAO PROPERTY: S&P Assigns 'BB-' Rating to Prop. US$ Notes
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' long-term
issue rating and 'cnBB+' long-term Greater China regional scale
rating to a proposed issue of U.S.-dollar-denominated senior
unsecured notes by Shimao Property Holdings Ltd. (BB/Stable/--;
cnBBB-/--). The ratings are subject to S&P's review of the final
issuance documentation.
The issue rating is one notch lower than the long-term corporate
credit rating on Shimao to reflect structural subordination risk.
Shimao intends to use the proceeds from the proposed issuance to
refinance existing debt, finance projects, and for general
corporate purposes.
Shimao's property sales are weaker than budgeted, but remain
commensurate with the corporate credit rating, in S&P's view.
Shimao's contracted sales for 2014 were Chinese renminbi (RMB)
70.2 billion, up 5% from RMB67 billion in 2013. The company is
also more disciplined in land purchases. Its cash payment for
land costs for 2014 fell below RMB25 billion, compared with RMB35
billion in 2013.
S&P believes that Shimao's increasing property sales and cautious
land acquisitions will largely offset an increase in debt owing to
expanding operations in 2015. In S&P's base case, it estimates
the debt-to-EBITDA ratio to be 4.0x-4.5x in the next 12 months,
well below S&P's downgrade trigger of 5.0x. The ratio was 4.0x in
2013.
The corporate credit rating on Shimao also reflects the company's
short record of consistent financial management. Shimao's
established market position, good geographic and project
diversity, and improving cash flow coverage and leverage support
the rating.
The stable outlook on the corporate credit rating reflects S&P's
expectation that Shimao will maintain satisfactory property sales
and largely stable profit margins over the next 12 months. S&P
also anticipates that the company will expand with discipline, and
control debt and leverage over the same period.
SUNAC CHINA: Planned Acquisition to Boost Presence, Fitch Says
--------------------------------------------------------------
Fitch Ratings says that Sunac China Holdings Limited
(BB-/Positive) will boost its Shanghai market presence with the
planned acquisition of four projects in the city from Kaisa after
the conditions precedent have been satisfied. Sunac said on
Feb. 1, 2015 it will pay CNY2.37bn for the projects, pricing the
land at an average of CNY6,277 per square metre of sellable area.
Sunac has been developing its presence in the Shanghai region
following its entry via a joint-venture with Greentown Real Estate
Group Co., Ltd. in October 2012. On an attributable gross floor
area basis, Sunac's land bank in Shanghai accounted for only 22%
of its total land bank as at end-June 2014; this addition will
increase its land bank in this region by around 13%.
Fitch considers the acquisition price to be low because the
projects purchased include an office and retail development in
Shanghai Pudong Financial Centre, where land usually commands a
much higher price. The average land price in the acquisition
compares favourably with Fitch's assumption of an average land
cost of over CNY7,000 per square metre in its projections for
Sunac.
The acquisition price will not strain Sunac's financial resources
as it is only 6% of Sunac's 2014 attributable contracted sales of
CNY39.4bn, which is well within normal land replenishment
operations. Sunac had unrestricted cash of CNY20.6bn as at end-
June 2014.
XIWANG SPECIAL: S&P Assigns 'BB-' CCR; Outlook Stable
-----------------------------------------------------
Standard & Poor's Ratings Services said that it had assigned its
'BB-' long-term corporate credit rating to Xiwang Special Steel
Co. Ltd. (Xiwang Steel). The outlook is stable. S&P also
assigned its 'cnBB+' long-term Greater China regional scale rating
to the China-based maker of specialty steel. At the same time,
S&P assigned its 'BB-' long-term issue rating and 'cnBB+' long-
term Greater China regional scale rating to Xiwang Steel's
proposed issue of senior unsecured notes. The rating on the notes
is subject to S&P's review of the final issuance documentation.
"Our rating on Xiwang Steel reflects our view of the group credit
profile {GCP} of the company's parent Xiwang Group Co. Ltd.," said
Standard & Poor's credit analyst Sangyun Han. "We consider Xiwang
Steel to be a core subsidiary of Xiwang Group, and accordingly
equalized the rating on the company to our assessment of the
parent's GCP. The rating on Xiwang Steel will move in tandem with
the GCP unless we reassess the company's group status."
In S&P's view, Xiwang Group is strongly committed to maintaining
the majority ownership in Xiwang Steel, given the company's high
and increasing contribution to the group's sales and cash flows.
The two share the same name. In addition, Xiwang Steel's business
is integral to the overall group's strategy, in S&P's view. S&P
therefore believes Xiwang Steel's market reputation and credit
standing is closely tied to that of the group.
S&P believes Xiwang Group's high industry risk, volatile raw
material prices, and high reliance on suppliers temper the group's
strengths. In addition, S&P believes the group will maintain its
high debt leverage and aggressive cash flow protection measures
over the next one to two years. Nevertheless, Xiwang Group's good
market position, geographic coverage, and wide product offering in
China's starch sugar market will continue to underpin the GCP.
The group's business diversity, covering corn processing and steel
manufacturing, will remain a supporting factor.
"We assess Xiwang Steel's stand-alone credit profile as 'bb-'.
Rating constraints include the company's small scale of operations
and lack of meaningful integration with the upstream raw material
industry, which may expose it to volatile raw material prices.
Nevertheless, we do not expect the cost of key raw materials to
increase significantly over the next one to two years. We expect
Xiwang Steel to maintain its niche role as the largest specialty
steel provider in terms of capacity in the Shandong region over
the next 12-24 months. We also anticipate that the company's
profitability will remain fair, supported by its flexible
manufacturing process and higher-margin specialty steel business.
In view of all these factors, we assess the company's business
risk profile as "weak"," S&P said.
"Execution risk as Xiwang Steel ramps up its specialty steel
segment and the company's lack of a track record in this business
will add some volatility to its cash flow adequacy," said Mr. Han.
S&P expects the company to gradually reduce its debt by lowering
its capital expenditure after the completion of a major expansion
in 2015. S&P do not anticipate that Xiwang Steel will incur any
large new investments over the next two years, at least, given
persistent overcapacity in China. In addition, S&P anticipates
that the company will improve its overall profitability and
operating cash flows by growing its new specialty steel product
lines. S&P therefore assess Xiwang Steel's financial risk profile
as "significant."
The rating on the proposed notes is same as the corporate credit
rating on Xiwang Steel because S&P believes material downstream
loans could mitigate structural subordination risk.
The stable outlook on Xiwang Steel reflects S&P's outlook on
Xiwang Group and S&P's view that Xiwang Steel will remain a core
subsidiary of the parent over the next two years. S&P anticipates
that Xiwang Steel's expansion in specialty steel will improve its
diversity and profitability despite weak industry conditions, and
it will therefore maintain the current SACP. S&P also expects the
company to be cautious in its expansion and keep its debt-to-
EBITDA ratio at about 2x-3x over the next 12 months.
S&P could downgrade Xiwang Steel if S&P lowers the parent's GCP.
The GCP will come under pressure if the group's performance is
significantly below expectation. That could happen if: (1) Xiwang
Steel's performance weakens substantially due to setbacks in the
ramping up of its new specialty steel businesses, such that its
debt-to-EBITDA ratio is above 3.5x for a sustained period; (2) a
prolonged weakness in the steel market curtails the company's
profitability; (3) the performance of Xiwang Steel's corn-
processing segment is weaker than S&P anticipated and its property
development business makes unexpectedly large losses; or (4) the
company's expansion in the steel segment or other group businesses
is larger than S&P expected.
Potential rating upside is limited over the next 12 months.
However, S&P could upgrade Xiwang Steel if the GCP improves. This
would most likely occur if the group executes the expansion in its
specialty steel segment and stabilizes its corn-processing and
property development businesses such that its cash flows and
leverage improve. An upgrade hinges on an improvement in Xiwang
Steel's cash flow adequacy -- also an indicator of the group's
overall financial risk profile -- such that the company's debt-to-
EBITDA ratio is below 1.5x.
* CHINA: 69 Troubled P2P Lending Platforms Reported in Jan. 2015
----------------------------------------------------------------
Xinhua News Agency reports that sixty-nine P2P (peer-to-peer)
lending platforms ran into trouble in January, according to
Wangdaizhijia, a web portal that tracks the industry.
This is the second highest monthly figure after the 92 in
December, the report says.
According to the news agency, Ma Jun, chief researcher with
Wangdaizhijia, said the platforms either went bankrupt or had
difficulty in withdrawing funds as a result of frauds or demands
for funds ahead of Lunar New Year.
Ma said rising defaults and weak risk control were also among the
factors, Xinhua relates.
Xinhua says the most notable case is one in Beijing where
investors lost CNY934 million (US$149 million).
Last month, 121 new P2P lending platforms were launched, raising
the total number of operational platforms nationwide to 1,627,
recalls Xinhua.
P2P lending, with much higher returns than bank deposits, is very
appealing to ordinary Chinese whose investment channels are
limited. It is estimated that 290,000 private lenders have
invested via P2P platforms, the report notes.
=========
I N D I A
=========
AGGARWAL RICE: CRISIL Suspends B Rating on INR145MM Cash Credit
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Aggarwal Rice Mills (ARM).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 145 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 2.9 CRISIL B/Stable
Term Loan 2.5 CRISIL B/Stable
Warehouse Receipts 100 CRISIL B/Stable
The suspension of ratings is on account of non-cooperation by ARM
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, ARM is yet to
provide adequate information to enable CRISIL to assess ARM's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
Established in 2001, ARM based in Punjab, is promoted by Mr. Arun
Aggarwal and Mr. Ashok Aggarwal. The firm is mainly engaged in
milling and marketing of higher grade variety of rice like Basmati
as well as non-basmati varieties like Parmal.
AJAY PROTECH: ICRA Reaffirms B+ Rating on INR15cr Cash Credit
-------------------------------------------------------------
ICRA has reaffirmed the long term rating at [ICRA]B+ to INR1.35
crore term loan facility and INR15.00 crore fund-based cash credit
facility of Ajay Protech Private Limited. ICRA has also reaffirmed
an [ICRA]A4 rating to INR10.00 crore short-term non fund based
bank guarantee facility and INR3.00 crore (sublimit of Bank
guarantee) Letter of credit facility of APPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 1.35 [ICRA]B+; Reaffirmed
Cash Credit 15.00 [ICRA]B+; Reaffirmed
Bank Guarantee 10.00 [ICRA]A4; Reaffirmed
Letter of Credit
(DP/DA upto 90 days) (3.00) [ICRA]A4; Reaffirmed
The ratings continues to remain constrained by APPL's financial
profile characterized by stretched capital structure, high
competitive intensity in the construction space resulting in
pressure on margins, geographical concentration risk due to
concentration of most of ongoing and future projects in Gujarat
and vulnerability of profitability to raw material price
variation, although the same is mitigated to a large extent on
account of the presence of an escalation clause in the contracts.
The ratings however continue to factor in the past experience of
the promoters in the civil construction business, status of "AA"
class contractor with Government of Gujarat as well as the reputed
client portfolio consisting of government and semi government
agencies. The ratings further also take note of the stable demand
for construction companies considering the large number of
projects being announced and increased public spending over the
medium to long term and moderate order book position.
Incorporated in April 2011, Ajay Protech Private Limited is
involved in engineering, procurement and construction (EPC) of
roads and bridges. It is promoted by Mr. Amratlal, Mr. Arvindh and
Mr. Chandresh Patel. The company has received an "AA" class
contractor certificate in February 2012 from the Government of
Gujarat and has also received "Special Category I" certificate.
Currently the company is working on fourteen projects out of which
six contracts are on a subcontract basis with an outstanding order
book position of INR167.75 crore.
Recent Results
For the year ended 31st March, 2014, the company reported an
operating income of INR104.19 crore with profit after tax (PAT) of
INR3.66 crore.
BALLARPUR INDUSTRIES: Fitch Affirms 'B+' IDR; Outlook Stable
------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings on
India-based paper maker Ballarpur Industries Limited (BILT) and
its subsidiary Bilt Paper B.V. (formerly known as Ballarpur
International Graphic Paper Holdings B.V) at 'B+'. The Outlook is
Stable.
KEY RATING DRIVERS
Decreasing Debt Levels: BILT has been taking steps to reduce its
high net debt levels. The company's net debt at the end of the
financial year to June 30, 2014 (FYE14) was INR64bn, including a
50% equity credit for the perpetual debt of INR12.9bn issued at
its subsidiary Bilt Paper. The company raised USD100m from an
equity issuance to International Finance Corporation (IFC) at its
subsidiary Bilt Paper in October 2014, which BILT used to reduce
debt. Fitch expects BILT's net debt to reduce to below INR58bn by
FYE15. BILT is also in the process of raising additional equity
by way of an IPO of Bilt Paper, which if successful, will lead to
a further reduction in its debt levels.
Financial Profile to Improve: Fitch expects BILT's financial
profile to benefit from the reduction in its indebtedness as well
as improvements to its cost structure and benefits of vertical
integration. The agency expects BILT's net leverage (measured by
net adjusted debt/ EBITDA) to reduce to around 5.5x by FYE15 and
below 5.5x by FYE16 (FYE14: 6.8x) after incorporating the equity
issuance to IFC but before any additional equity it may raise from
the IPO of Bilt Paper.
BILT's liquidity has improved from FYE13; the company had cash
balances of INR2.57bn as of FYE14, up from INR740.2m at FYE13.
Further, IFC has extended a long-term loan of USD150m to BILT,
which it plans to use to refinance most of the current debt at its
Malaysian subsidiary, Sabah Forest Industries Sdn. Bhd. (SFI).
The new debt comes with easier covenants and longer maturity,
adding to its overall liquidity.
Improved Vertical Integration: Fitch expects the greater vertical
integration from expanded pulp capacities to support improvement
in BILT's profitability from FY15. More vertical integration
during 2HFY14 resulted in a better cost structure and EBIT margin
for the paper division rising to 11.4% in FY14 from 10% in FY13.
BILT vertical integration has improved after it completed the
expansion of its pulp mill at the Ballarpur unit in FY14. The
expanded pulp capacities in India and at SFI will result in BILT
being fully integrated for its Hardwood Pulp requirements (from
around 75% in FY13) in addition to being almost fully integrated
for its power requirements.
Weak Rayon Grade Pulp Business: BILT's rayon grade pulp business
has been impacted by the weakness in the pulp prices, generating
EBITDA losses in FY14 of about INR300m. Its rayon grade pulp
business only accounts for about 5% of revenue; the majority of
revenue and EBITDA is generated from the profitable writing and
printing paper business. BILT has consequently shut its rayon
grade pulp plant in May 2014 and has been taking steps to reduce
its fixed costs. With the continuing weak prices for rayon grade
pulp, Fitch expects the division to continue to make EBITDA losses
during FY15.
Strong Market Position: BILT has a strong market position in
India's writing and printing paper markets, with dominant
positions in the coated paper segment (market share of about 40%)
and uncoated paper (hi-bright market share of about 25%).
Further, its subsidiary SFI has over 50% share in Malaysia's non-
surface sized uncoated paper sub-segment. The strong market
shares are supported by BILT's strong brand presence and large
distribution network to cater to the fragmented paper market.
Strategic Linkages with Subsidiaries: Bilt Paper's ratings reflect
its strong operational and strategic linkages with the ultimate
parent, BILT. Bilt Paper is in the same business as BILT and has
a common treasury and management team. Bilt Paper holds a 99.99%
stake in Ballarpur Graphic Paper Products Ltd. (BGPPL) and a 97.8%
stake in SFI. Bilt Paper contributes to over 85% of BILT's
overall revenue and about 80% to its EBITDA.
RATING SENSITIVITIES
Negative: Future developments that may, individually or
collectively, lead to negative rating action include:
-- Failure by BILT to reduce its net leverage comfortably
below 5.5x by FY16.
-- EBITDA fixed charge cover sustained at below 2x
(FY14:1.63x)
-- Any weakening in liquidity
Positive: A rating upgrade is unlikely in the medium term.
However, future developments that may, individually or
collectively, lead to positive rating action on include:
-- Significant improvement in BILT's profitability resulting
in EBITDA margin sustained at over 20% (FY14: 17.7%)
-- Substantial reduction in debt levels resulting in BILT's
net leverage falling below 4x on a sustained basis
BANSAL BROTHERS: CRISIL Ups Rating on INR57.5MM Cash Credit to B
----------------------------------------------------------------
CRISIL has upgraded its long-term rating on the bank facilities of
Bansal Brothers Pvt Ltd (BBPL) to 'CRISIL B/Stable' from 'CRISIL
B-/Stable'
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 57.5 CRISIL B/Stable (Upgraded
from 'CRISIL B-/Stable')
Proposed Long Term 20.5 CRISIL B/Stable (Upgraded
Bank Loan Facility from 'CRISIL B-/Stable')
The rating upgrade reflects improvement in company's liquidity and
financial risk profile through repayment of entire debt
obligations that was funded through its moderate cash accruals.
The company has also repaid its seasonal cash credit facility in
November 2014. With absence of debt obligations, CRISIL believes
that BBPL's liquidity is expected to remain supported over the
medium term.
The rating also reflect BBPL's below-average financial risk
profile, marked by its modest net worth and subdued debt
protection metrics, and susceptibility of the company's margins to
changes in government policies and volatility in product prices.
These rating weaknesses are partially offset by the extensive
experience of BBPL's promoters in the cold storage industry.
Outlook: Stable
CRISIL believes that BBPL will continue to benefit over the medium
term from its promoters extensive industry experience. The outlook
may be revised to 'Positive' in case the company reports higher-
than-expected revenues and profitability, resulting in improvement
in its financial risk profile. Conversely, the outlook may be
revised to 'Negative' in case of pressure on BBPL's liquidity,
driven by delays in repayment of loans from farmers, or lower than
expected cash accruals, resulting in further deterioration in its
financial risk profile.
Incorporated in 1989, BBPL provides cold storage facilities for
potato manufacturers. The company's facility, based in Paschim
Medinipur (West Bengal), has a capacity to store 270,000 tonnes.
The company also trades in potatoes, though the proportion of
revenues from this business to total revenues is small.
BATANAGAR EDUCATION: CRISIL Reaffirms B- Rating on INR130MM Loan
----------------------------------------------------------------
CRISIL ratings on the bank facilities of Batanagar Education and
Research Trust (BERT) continues to reflect the weak financial risk
profile of the trust marked by tightly matching accruals to the
debt repayment obligations and weak debt protection metrics. These
rating weaknesses are partially offset by the support that the
trust receives from its trustees and from its newly formed tie-up
with TIG, and benefits expected from the strong demand prospects
for education in India.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 130 CRISIL B-/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that BERT's credit risk profile is likely to
benefit over the medium term from the experience of its trustees
and from its newly formed tie-up with TIG. The outlook may be
revised to 'Positive' if the trust reports a higher-than-expected
surplus, leading to substantial cash accruals, or if it receives
adequate and timely support from its trustees. Conversely, the
outlook may be revised to 'Negative' if BERT does not receive
adequate and timely support from its trustees, leading to further
weakening of its liquidity.
Update
In its second year of operations, the company reported revenues of
INR19.4 million in 2013-14 (refers to financial year, April 1 to
March 31).The company made low operating margin of 4.6 per cent on
account of its high fixed cost vis-a-vis low fee collection on
account of its initial year of operation. Going ahead with
addition of new batches and introduction of new courses, the
operating income is expected to increase further leading to
improvement in the operating margins.
BERT's net worth modest at INR86 million, as on March 31, 2014
thereby limiting its financial flexibility to meet any exigency.
The company has high debt levels coupled with moderate net-worth
levels has resulted in a gearing of 1.49 times as on March 31st
2014. Further the trust has weak debt protection metrics. The
accruals made by the trust continue to be insufficient for debt
repayment. The trust made accruals of INR0.9 million as against
its debt obligations of INR2.4 million. However in 2013-14 the gap
has been funded through support from TIG. Further going ahead the
group is expected to support the debt repayments of the trust.
The trust has formed a tie-up with Techno India Group, a well-
known group in West Bengal in education sector. This management
has indicated that this tie-up will help provide BERT with the
financial support which it requires for meeting its term loan
obligations and any further capital expenditure programme.
BERT was set up as a public charitable trust and registered in
February 2007 as a non-profit trust. The trust has set up an
engineering college, Batanagar Institute of Engineering Management
and Science, at Maheshtala in Kolkata (West Bengal).
BHARAT SCRAP: ICRA Assigns B Rating to INR2.5cr LT Loan
-------------------------------------------------------
ICRA has assigned its long term rating of [ICRA] B to the INR2.50
crore fund based bank facilities and its short term rating of
[ICRA]A4 to the INR5.00 crore non fund based bank facilities of
Bharat Scrap.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits- 2.50 [ICRA]B; assigned
Long Term
Non Fund Based
Limits-Short Term 5.00 [ICRA]A4; assigned
ICRA's ratings are constrained by firm's small scale of
operations, its presence in a highly fragmented and competitive
industry, which coupled with the cyclical nature of the steel
industry, exposes it to raw material price fluctuations. These
factors, along with the low value additive nature of the business
have led to the firm's low and volatile profitability margins. The
ratings also take into account the exposure of the firm to
fluctuations in foreign exchange rates, as it is partially
dependent on imports for raw materials and most of these
transactions are unhedged. Further, the ratings also take note of
the firm's weak credit profile with high gearing and poor coverage
indicators. The ratings, however, derive comfort from the positive
demand outlook, healthy growth in the firm's operating income and
the extensive track record of the promoters in the industry.
Going forward the firm's ability to increase its scale of
operations along with improvement in its profitability to generate
sufficient cash accruals, will be the key rating sensitivities.
Bharat Scrap, based in Indore, Madhya Pradesh, was incorporated in
1991 and started operations in 1995 as a partnership concern.
Currently, the firm is managed by two partners, Mr. Ajay Khurana
and his brother Mr. Vijay Khurana. It is engaged in the trading of
iron and steel scrap, mainly to local steel rolling mills.
Recent Results
Bharat Scrap reported a net profit of INR0.04 crore on an
operating income of INR13.64 crore for 2013-14, as against a net
profit of INR0.02 crore on an operating income of INR5.15 crore
for the previous year.
BORSE BROTHERS: CRISIL Assigns B Rating to INR93.7MM Term Loan
--------------------------------------------------------------
CRISIL has revoked the suspension of its ratings on the bank
facilities of Borse Brothers Engineers & Contractors Pvt Ltd
(BBEC), and assigned its 'CRISIL B/Stable/CRISIL A4' ratings to
the facilities. CRISIL had, on June 11, 2014, suspended the
ratings as BBEC had not provided the necessary information
required to maintain valid ratings. The company has now shared the
requisite information, enabling CRISIL to assign ratings to the
bank facilities.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 25 CRISIL A4 (Assigned;
Suspension Revoked)
Cash Credit 20 CRISIL B/Stable (Assigned;
Suspension Revoked)
Proposed Long Term 31.3 CRISIL B/Stable (Assigned;
Bank Loan Facility Suspension Revoked)
Term Loan 93.7 CRISIL B/Stable (Assigned;
Suspension Revoked)
The ratings reflect BBEC's small scale, and working capital
intensive nature, of operations in the fragmented and tender-
driven civil construction industry. The ratings also factor in the
company's average financial risk profile, marked by a small net
worth and low cash accruals, and its exposure to risks related to
build-operate-lease-transfer (BOLT) projects. These rating
weaknesses are partially offset by the extensive experience of
BOLT's promoters in the civil construction industry, and its
healthy order book which provides moderate revenue visibility.
For arriving at the ratings, CRISIL has treated BBEC's interest-
free unsecured loan of INR12.1 million, extended by the company's
promoters, as neither debt nor equity, as the amount is expected
to be retained in the business over the medium term.
Outlook: Stable
CRISIL believes that BBEC will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company significantly
scales up its operations, while maintaining its profitability and
capital structure. Conversely, the outlook may be revised to
'Negative' if BBEC's financial risk profile, especially its
liquidity, weakens, most likely because of a substantial increase
in its working capital requirements, or decline in its cash
accruals, or large debt-funded capital expenditure.
Incorporated in April 2010, BBEC undertakes construction of roads,
irrigation projects, and buildings. The business was earlier
carried out under a proprietorship firm, Borse Brothers Engineers
and Contractors, which was established in 1986. BBEC undertakes
projects for central, state, and local government agencies.
BP PLYBOARD: CARE Assigns B+ Rating to INR10.71cr LT Bank Loan
--------------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to bank facilities of
BP Plyboard Pvt Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 10.71 CARE B+ Assigned
Short-term Bank Facilities 0.80 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of BP Plyboard Pvt.
Ltd. (BPL) are primarily constrained by its small scale of
operations in the highly fragmented & competitive laminates
industry, susceptibility of profitability to volatile raw
material prices, high working capital intensity of the operations
marked by elongated operation cycle and persistent high
utilization of working capital limit, substantial dependence on
the fortunes of the cyclical real estate industry and risk
associated with capacity expansion project under implementation.
The above constraints outweigh the comfort derived from the
experience of the promoters in the laminates business.
The ability of BPL to grow its scale of operation while sustaining
its profitability margin and effective working capital management
would be the key rating sensitivities.
BPL was incorporated in November, 2005 by Mr Binay Kumar Bajaj and
Mr Manoj Kumar Bajaj of Kolkata, West Bengal with an objective to
setup a plyboard manufacturing unit. The company commenced
plyboard manufacturing from April 2007 at its plant located at
Howrah, West Bengal. In July 2011, the company forayed into
laminate sheets manufacturing business (with installed capacity
13.48 lakh sheets per annum) by setting up a plant at Hooghly,
West Bengal.
Subsequently in April 2013, the company has sold out its plyboard
manufacturing unit in order to put emphasis on the fast growing
decorative laminates business. The company sells its product under
the name "Deep" through wholesalers and retailers located in West
Bengal, Odisha, Assam, Jharkhand, Maharashtra, Bihar and
Chhattisgarh.
During FY14 (refers to the period April 1 to March 31), BPL
reported a total operating income of INR9.02 crore (vis-a-vis
INR7.86 crore in FY13) and a PAT (after deferred tax) of INR0.17
crore (vis-a-vis net loss of INR0.71 crore).
BSK AGENCIES: CRISIL Suspends B Rating on INR100MM Bank Loan
------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
BSK Agencies (BSK).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term 100 CRISIL B/Stable
Bank Loan Facility
The suspension of ratings is on account of non-cooperation by BSK
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, BSK is yet to
provide adequate information to enable CRISIL to assess BSK's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
BSK, set up in 2004, is involved in retailing of gold jewellery
and distribution of cool drinks and mobiles. The company is
promoted by Mr. B Sampath Kumar and his family.
CDP (INDIA): ICRA Reaffirms B+ Rating on INR15cr Cash Credit
------------------------------------------------------------
ICRA has reaffirmed the long-term rating at [ICRA]B+ to the
INR18.90 crore (reduced from INR19.00 crore) fund based bank
facilities of CDP (India) Private Limited. ICRA has also
reaffirmed the short-term rating at [ICRA]A4 to the INR5.00 crore
(enhanced from INR3.00 crore)non fund based bank facility of the
company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Fund Based
Limit-Term Loans 3.90 [ICRA]B+ Reaffirmed
Long Term Fund Based
Limit-Cash Credit 15.00 [ICRA]B+ Reaffirmed
Short Term Non Fund
Based Limit-Bank
Guarantee 5.00 [ICRA]A4 Reaffirmed
The ratings continue to be constrained by the company's modest
scale of operations and its weak financial profile characterized
by consistently falling profit margins owing to limited pricing
flexibility in branded IT products and weak bargaining power with
a concentrated customer base and stretched capital structure due
to debt-funded capacity expansion. Moreover, the ratings are
further affected by the intensely competitive nature of
Information Technology (IT) industry with presence of several
small players.
However, the reaffirmed ratings favourably factor in the
experience and track record of the promoters in the IT business;
reputed and diversified clientele and alliance with leading brands
providing a wide range of products/services to the company.
CDP (India) Private Limited was incorporated in the year 1999 and
is engaged in the trading of computer systems and accessories,
supply and installation of different hardware and software and
annual maintenance contract (AMC). The company has its registered
office in Mumbai and a warehouse cum quality check centre at Vasai
(Thane). It has a pan India presence in terms of support
infrastructure in more than 70 locations across India and has
branch offices in Ahmedabad, Bengaluru, Delhi and Lucknow.
Recent results
CDP recorded a profit after tax of INR0.81 crore on an operating
income of INR93.69 crore for the year ending March 31, 2014 and a
profit before tax of INR1.39 crore on an operating income of
INR67.64 crore for the ten months ending October 31, 2014
(Provisional numbers).
COCHIN VENEERS: CRISIL Reaffirms B Rating on INR10.6MM Cash Loan
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Cochin Veneers (CV)
continue to reflect CV's small scale of operations in the highly
fragmented timber industry and its large working capital
requirements. The ratings also reflect the firm's below-average
financial risk profile, marked by high total outside liabilities
to tangible net worth (TOLTNW) ratio and small net worth. These
rating weaknesses are partially offset by the extensive experience
of the firm's proprietor in the timber-trading and veneer-
manufacturing industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 9 CRISIL B/Stable (Reaffirmed)
Letter of Credit 40 CRISIL A4 (Reaffirmed)
Proposed Cash 10.6 CRISIL B/Stable (Reaffirmed)
Credit Limit
Proposed Term Loan 0.4 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that CV will continue to benefit over the medium
term from its proprietor's extensive industry experience. The
outlook may be revised to 'Positive' if the firm scales up its
operations significantly while improving its profitability,
leading to better-than-expected cash accruals and improvement in
its liquidity. Conversely, the outlook may be revised to
'Negative' if CV reports lower-than-expected revenues or
profitability, or its working capital management deteriorates
resulting in weak liquidity, or if it undertakes a large debt-
funded capital expenditure programme, leading to weakening of its
financial risk profile.
Update
CV's business risk profile continues to be constrained on account
of its modest scale of operations and low profitability. The
company reported modest operating income of INR76 million for
2013-14 (refers to financial year, April 1 to March 31). The
firm's operating profitability was low at 4.8 per cent in 2013-14.
CRISIL believes that its business risk profile will continue to be
constrained on account of intense competition in the highly
fragment timber industry.
CV's below-average financial risk profile is marked by small net
worth of INR14 million and high TOLTNW ratio of 4.21 times as on
March 31, 2014. The firm's financial risk profile is expected to
remain below-average over the medium term, driven by low accretion
to reserves.
CV's liquidity is restricted by its large working capital
requirements, marked by gross current assets of 296 days as on
March 31, 2014, leading to extensive utilisation of bank limits.
The firm's cash accruals are expected to be tightly matched as
against the repayment obligations. However the need-based funding
support from the promoters continues to support its liquidity.
Set up in 1988, CV trades in timber and manufactures veneers. The
firm's day-to-day operations are managed by its proprietor, Mr. P
K Thomas.
ENTRACO POWER: CRISIL Assigns B Rating to INR45MM Cash Credit
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
long-term bank facilities of Entraco Power Systems Private Limited
(EPSPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Term Loan 0.5 CRISIL B/Stable
Inland/Import Letter
of Credit 30 CRISIL A4
Bank Guarantee 24.5 CRISIL A4
Cash Credit 45 CRISIL B/Stable
The rating reflects EPSPL's modest scale of operations, large
working capital requirements and weak financial risk profile
marked by modest net worth, high gearing and weak debt protection
and stretched liquidity. These rating weaknesses are partially
offset by extensive industry experience of its promoters.
Outlook: Stable
CRISIL believes that EPSPL will continue to benefit from its
promoters' extensive industry experience and their funding
support. The outlook may be revised to 'Positive' in case there is
a substantial and sustained increase in the company's scale of
operations, while sustaining its profitability margins.
Conversely, the outlook may be revised to 'Negative' in case the
company generates lower than expected cash accruals or is exposed
to larger than expected working capital requirements or undertakes
higher than expected debt funded capex leading to deterioration in
its financial risk profile.
Incorporated in 1992, EPSPL, is a Nashik based company, engaged in
designing and manufacturing of control panels, switchboard and bus
ducts having its manufacturing set up in Nashik. It also
undertakes electrification contracts for various industrial
plants. It is promoted by two brothers; Mr. Mangesh Nasikkar and
Rajesh Nasikkar.
EVERSHINE MOULDERS: CRISIL Suspends B Rating on INR50MMM Loan
-------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Evershine Moulders Ltd (EML).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B/Stable
Letter of Credit 5 CRISIL A4
Standby Line of Credit 5 CRISIL B/Stable
Term Loan 13 CRISIL B/Stable
The suspension of ratings is on account of non-cooperation by EML
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, EML is yet to
provide adequate information to enable CRISIL to assess EML's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
Incorporated in 2002, EML manufactures moulded plastic components
for white goods, including washing machines, refrigerators, air
conditioners, and automobiles. The company's customers include
Daikin India, Panasonic India Pvt Ltd, Videocon Industries Ltd,
Krishna Maruti Ltd, and Lumax Auto Technologies Ltd (rated 'CRISIL
A/Stable/CRISIL A1'). EML is promoted by Mr. Kishore Khanna, who
has more than a decade's experience in the plastic-moulding
industry through his other group concerns.
FEEDPRO AGRO: CRISIL Suspends B+ Rating on INR31.5MM Term Loan
--------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Feedpro
Agro Pvt Ltd (FAPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 22.5 CRISIL B+/Stable
Term Loan 31.5 CRISIL B+/Stable
The suspension of ratings is on account of non-cooperation by FAPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, FAPL is yet to
provide adequate information to enable CRISIL to assess FAPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
Incorporated in 2013, FAPL is in the process of setting up a
poultry feed manufacturing unit at Atrauli (Uttar Pradesh). It is
managed by Mr. Ekansh Garg. Commercial operations of the unit are
expected to start in January 2014.
FLOCKSUR INDIA: ICRA Assigns B+ Rating to INR10cr Fund Based Loan
-----------------------------------------------------------------
ICRA has assigned its long-term rating of [ICRA]B+ to the
INR10.001 crore fund-based bank facilities of Flocksur India
Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based facilities 10.00 [ICRA]B+; assigned
The rating draws comfort from the experience of FIPL's promoters
of nearly two decades in fabric trading and over a decade in the
manufacturing of flock fabrics, and their well established
distribution network as reflected in their ability to scale up
revenues.
However, the rating is constrained by low and declining operating
profitability and high working capital intensity of the
operations. The operating margin has declined from 8.1% in 2011-12
(for Flocksur India, which was converted to FIPL during 2013-14)
to 5.3% in 2013-14 (for FIPL). The high working capital cycle of
the company is driven by wide variety of fabric offerings by the
company, which results in need to maintain high inventories, as
well as relatively high receivable collection period. High working
capital intensity results in high dependence on debt borrowing to
achieve growth, given the low accruals, hence resulting in
stretched liquidity as reflected in full utilization of working
capital limits and frequent use of ad-hoc borrowings.
Going forward, improvement in operating profitability and the
company's ability to maintain adequate liquidity while sustaining
the pace of revenue growth will be the key rating sensitivities.
Incorporated in 2013, FIPL is engaged in manufacture of flock
fabrics which finds application in furnishing products. Prior to
the incorporation of FIPL, these operations were earlier carried
out under the partnership firm Flocksur India, owned by FIPL's
promoters Mr. Sunil Girdhar and his wife Mrs. Urvashi Girdhar.
FIPL's manufacturing unit is located in Gurgaon (Haryana) which
produces around 4-5 lac meters of flocked fabric per month.
Recent Results
FIPL reported an Operating Income (OI) of INR40.82 crore and a
Profit after Tax (PAT) of INR0.29 crore in 2013-14.
GM REDDY: CRISIL Suspends B- Rating on INR75MM Cash Credit
----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
GM Reddy Cotton Industries Pvt Ltd (GMPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 75 CRISIL B-/Stable
Proposed Long Term
Bank Loan Facility 51.3 CRISIL B-/Stable
Term Loan 23.7 CRISIL B-/Stable
The suspension of ratings is on account of non-cooperation by GMPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, GMPL is yet to
provide adequate information to enable CRISIL to assess GMPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
GMPL was promoted in 2010 by Mr. Gandra Bhoopal Reddy, who has
experience of around two decades in managing petroleum pumps in
Warangal (Andhra Pradesh). GMPL is, however, the first venture of
the promoters in the cotton industry.. GMPL started operations in
January 2011 and has a ginning mill capacity of 300 bales per day
in Warangal. The company set up a fully automated ginning mill
with 36 jumbo machines.
GOWRI INFRA: ICRA Suspends B- Rating on INR50.74cr LT Loan
----------------------------------------------------------
ICRA has suspended [ICRA]B- rating assigned to the INR50.74 crore
long term limits and [ICRA]A4 ratings assigned to the INR30.0
crore short limits of M/s Gowri Infra Engineers Private Limited*.
The suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
HIMALAYA MEDITEK: CRISIL Suspends B Rating on INR60MM Cash Loan
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Himalaya Meditek Pvt Ltd (HMPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 60 CRISIL B/Stable
Term Loan 40 CRISIL B/Stable
The suspension of ratings is on account of non-cooperation by HMPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, HMPL is yet to
provide adequate information to enable CRISIL to assess HMPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
HMPL was incorporated in 2006-07 (refers to financial year,
April 1 to March 31); the company was taken over by current
management in January 2013. HMPL is presently promoted by Mr.
Arpan Mittal and Mrs. Sangeet Mittal. The company manufactures
off-patent bulk pharmaceutical formulations such as tablets,
capsules, ointments, suspensions and syrups, and injectables. It
is based in Dehradun district (Uttarakhand).
KVK GRANITES: ICRA Reaffirms B- Rating on INR1.81cr Term Loan
-------------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B- assigned to
INR1.81 crore term loans and reaffirmed the short term rating of
[ICRA]A4 to INR5.00 crore fund based credit facilities of KVK
Granites.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term loans 1.81 [ICRA]B- reaffirmed
Fund based limits 5.00 [ICRA]A4 reaffirmed
The reaffirmation of ratings continues to be constrained by modest
scale of operations of the firm in the granite quarrying industry
and its weak financial profile characterized by thin coverage
indicators with interest coverage ratio of 1.97 times and high
gearing levels of 3.10 times for FY2014. The ratings are also
constrained by high working capital intensive nature of operations
owing to high inventory requirements; highly fragmented nature of
granite quarrying industry resulting in thin profitability margins
and susceptibility of operating margins to exchange rate
fluctuations as firm derives majority revenues from exports with
no defined hedging policy in place. The ratings, however,
favourably factor in the long-standing experience of the promoters
in granite industry and established relationships with customers
resulting in repeat orders.
Going forward, ability of the firm to expand the scale of
operations by adding new customers, manage the inventory cycle
effectively and improve the gearing levels would be the key rating
sensitivities from credit perspective.
KVK Granites is a Nellore based firm set up in 2007 by Mr. KV
Krishna Reddy. The firm is primarily into trading and mining of
granite from leased quarries. It is presently operating two
quarries both in Karimnagar district in Telangana. In addition,
the company has also acquired lease interest in two other mines,
respectively at Mysore (Karnataka), and Chittoor. Granite is
sourced from the leased quarries as well as from other suppliers
and is sold predominantly in the foreign markets, with China
contributing bulk of revenues for KVK Granites.
Recent Results
The firm reported an operating income of INR14.26 crore and a net
profit of INR0.13 crore in FY 2014 as against INR10.47 crore and
INR0.09 crore respectively in FY 2013.
LEGNO DOOR: ICRA Suspends D Rating on INR6cr Bank Loan
------------------------------------------------------
ICRA has suspended the rating of [ICRA]D assigned to the INR6.00
crore bank facilities of Legno Door Systems Private Limited. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
MASS INFRASTRUCTURE: CRISIL Suspends D Rating on INR130MM Loan
--------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Mass
Infrastructure Pvt Ltd (MIPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 50 CRISIL D
Cash Credit 130 CRISIL D
Working Capital
Demand Loan 85 CRISIL D
The suspension of ratings is on account of non-cooperation by MIPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, MIPL is yet to
provide adequate information to enable CRISIL to assess MIPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
MIPLis a private limited company engaged in the construction of
roads, bridges and dams for government projects in Gujarat and
other states. It was established as a partnership firm, Mass
Construction Company (MCC), in 1993 by Mr. Arvind Patel who is a
key promoter and director of the company.MCC was reconstituted as
a private limited company named MIPL in 2002.The registered office
of the company is at Vadodara in Gujarat.
MCP INDUSTRIAL: CRISIL Suspends D Rating on INR67MM LT Loan
-----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
MCP Industrial Complex (MCPIC).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 67 CRISIL D
Proposed Long Term
Bank Loan Facility 40 CRISIL D
The suspension of ratings is on account of non-cooperation by
MCPIC with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, MCPIC is yet to
provide adequate information to enable CRISIL to assess MCPIC's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
MCPIC was set up as a partnership firm in December 2008 by Mr. S
Ganesan and his family members. It leases warehouse spaces in and
around the industrial hub of Sriperumbudur, located 40 kilometres
from Chennai (Tamil Nadu).
MILLENIUM PAPERS: ICRA Suspends B+ Rating on INR16cr Cash Credit
----------------------------------------------------------------
ICRA has suspended the [ICRA]B+ rating assigned to the INR31.78
crore long term working capital limits and term loan limits and
also [ICRA]A4 rating assigned to the INR1.10 crore short term non
fund based limits of Millenium Papers Pvt Ltd. The suspension
follows ICRAs inability to carry out a rating surveillance in the
absence of the requisite information from the company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based-Cash Credit 16.00 [ICRA]B+; Suspended
Fund Based-Term Loan 15.78 [ICRA]B+; Suspended
Non Fund Based-Import
Letter of Credit (3.00) [ICRA]A4; Suspended
Non Fund Based-Bank
Guarantee 1.10 [ICRA]A4; Suspended
Millenium Papers Pvt. Ltd. (MPPL) was incorporated in the year
2009 by Koradiya family for manufacturing duplex boards. The
company manufactures two varieties of duplex boards: grey back and
white back boards, using waste paper as the key raw material. The
company has commenced its commercial production from July 2011
with its manufacturing facility located at Morbi, Gujarat. The
installed capacity of the plant is 45,000 MTPA (Metric Tons Per
Annum).
NAJ JEWELLERY: CRISIL Suspends B+ Rating on INR200MM Cash Credit
----------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Naj Jewellery Private Limited (NAJ).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Cash
Credit Limit 200 CRISIL B+/Stable
The suspension of ratings is on account of non-cooperation by NAJ
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, NAJ is yet to
provide adequate information to enable CRISIL to assess NAJ's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
NAJ, set up in 1982, is a retailer of gold jewellery. It operates
two showrooms in Nellore (Andhra Pradesh) ' Archari Street and
Mandapala Street. The day to day operations of the firm are
managed by its managing director, Mr. Lalit Jain.
NAVKETAN ROLLER: ICRA Reaffirms B+ Rating on INR7cr Cash Credit
---------------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B+ to INR7.00
crore (enhanced from INR5.00 crore) fund based cash credit bank
facilities of Navketan Roller Flour Mills Private Limited. ICRA
has also reaffirmed the short term rating of [ICRA]A4 to INR0.15
crore non fund based facilities of the company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term, fund based
limits - Cash Credit 7.00 [ICRA]B+ Reaffirmed
Short term, non fund
based - Bank Guarantee 0.15 [ICRA]A4 Reaffirmed
The rating reaffirmation continues to favourably factor in the
long operational history of NRFM, established relationship with
institutional clients and location advantage arising out of
proximity to the key customer. The assigned ratings also take into
account favourable demand prospects for the end user industry. The
ratings however remain constrained by NRFM's stretched liquidity
position due to working capital intensive operations. The company
has moderate scale of operations in a highly fragmented industry
and the same coupled with limited value adding nature of the
industry results in modest operating margins. The company has high
client concentration towards Nestle as reflected in decline in
overall operating income in FY14 due to lower sales to Nestle;
however the same is mitigated to some extent by long standing
relationship of the company with the customer. Further, the
company remains vulnerable to regulatory changes and volatility in
wheat prices which is a function of agro climatic conditions.
Incorporated in 1987, Navketan Roller Flour Mills Private Limited
(NRFM) is promoted by Mr. Amrut Jain. It is engaged in the
manufacturing of Maida, Atta, Sooji and Bran. The company has
manufacturing plant at Bethoda Industrial Estate, Ponda, Goa. The
company started with installed capacity of 50 TPD. Currently, the
installed capacity is 100 TPD.
Recent Results
NRFM recorded a profit after tax (PAT) of INR0.44 crore on an
operating income of INR29.10 crore in FY14 as against a PAT of
INR0.75 crore on an operating income of INR33.02 crore in FY13.
NEW RISHIKESH: ICRA Suspends D Rating on INR5.25cr LT Loan
----------------------------------------------------------
ICRA has suspended [ICRA]D rating assigned to the INR5.25 crore,
long term loans and working capital facilities of New Rishikesh
Medical foundation and Research Centre Private Limited. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
Incorporated in 1996 as a partnership firm and converted into a
private limited company, New Rishikesh Medical Foundation And
Research Centre Private Limited) is involved in imparting medical
services primarily in the city of Nasik, Maharashtra.
OMEGA INFRAENGINEERS: CRISIL Rates INR10MM Cash Credit at 'B+'
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Omega Infraengineers Pvt Ltd (OIPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 50 CRISIL A4
Cash Credit 10 CRISIL B+/Stable
The ratings reflect OIPL's modest scale of operations in the
highly fragmented civil construction industry. The ratings also
factor in the company's working-capital-intensive operations.
These rating weaknesses are partially offset by the extensive
experience of OIPL's promoters in the civil construction industry
and it's above average financial risk profile marked by moderate
gearing.
Outlook: Stable
CRISIL believes that OIPL will continue to benefit over the medium
term from its promoters' extensive industry experience and its
established relationships with customers. The outlook maybe
revised to 'Positive' if the company significantly improves its
scale of operations and profitability, leading to a substantial
increase in its cash accruals, while efficiently managing its
working capital requirements. Conversely, the outlook maybe
revised to 'Negative' if OIPL generates low cash accruals, or if
its working capital requirements increase considerably, or if it
undertakes a large capital expenditure programme, adversely
impacting its liquidity.
OIPL, incorporated in 2009, is engaged in civil construction works
(structural work, fabrication, heavy work, and erections) of steel
and power plants primarily for private entities. The company is
based in Chandigarh and is promoted by Mr. Raveljeet Singh Ruppal.
PARAS NUTRITIONS: CRISIL Assigns B Rating to INR55MM Cash Credit
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Paras Nutritions Pvt Ltd (PNPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 33.3 CRISIL B/Stable
Cash Credit 55 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 36.7 CRISIL B/Stable
The rating reflects PNPL's small scale of operations in the highly
competitive cattle feed industry, and its weak financial risk
profile, marked by high gearing and weak debt protection metrics.
These rating weaknesses are partially offset by the benefits that
PNPL derives from its association with Nestle India Ltd (Nestle;
rated 'CRISIL AAA/Stable/CRISIL A1+').
Outlook: Stable
CRISIL believes that PNPL will benefit over the medium term from
its association with NIL. The outlook may be revised to 'Positive'
if the company reports substantial and sustained growth in its
scale of operations and profitability leading to healthy cash
accruals, or if it improves its capital structure supported by
capital infusion by its promoters, leading to improvement in its
financial risk profile. Conversely, the outlook may be revised to
'Negative' in case of lower-than-expected accruals or any debt-
funded capital expenditure resulting in further weakening in
capital structure, or in case of increase in working capital
requirements leading to further stretch in liquidity.
Incorporated in 2011, PNPL is a Punjab-based company that
manufactures cattle feed. It sells cattle feed to institutional
customers, including Nestle, under its brands, Milksure and Asees.
The company's manufacturing unit is located in Moga (Punjab) .Its
operations are managed by Mr. Paras Buddhiraja.
PUJA INDUSTRIES: CRISIL Reaffirms B Rating on INR60MM Term Loan
---------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Puja
Industries (PI) continues to reflect PI's average financial risk
profile, marked by modest net worth and weak capital structure.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 47.5 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 60 CRISIL B/Stable (Reaffirmed)
Term Loan 11.6 CRISIL B/Stable (Reaffirmed)
The rating also reflects PI's modest scale of operations and the
susceptibility of its margins to volatility in raw material
prices. These rating weaknesses are partially offset by the
extensive industry experience of its partners and its established
relationship with customers and suppliers.
Outlook: Stable
CRISIL believes that PI will continue to benefit over the medium
term from its promoters extensive industry experience and its
established relationship with customers and suppliers. The outlook
may be revised to 'Positive' if the firm reports higher-than-
expected cash accruals, driven by ramp-up in the scale of
operations and profitability, leading to improvement in PI's
financial risk profile. Conversely, the outlook may be revised to
'Negative' in case of deterioration in PI's financial risk
profile, particularly liquidity, driven by decline in cash
accruals, or elongation in the working capital cycle, or larger-
than-expected debt funded capital expenditure (capex) plans.
Update
For 2013-14 (refers to financial year, April 1 to March 31), PI
reported revenues of INR161.4 million; in line with CRISIL's
expectation. For the nine months through December 2014, the firm
has clocked revenues of around INR130 million; it has an order
book of around INR30 million to be executed over a period of two
months. CRISIL believes that PI will register a moderate revenue
growth over the medium term. PI's operating profitability declined
to 7.8 per cent during 2013-14 against 10 per cent in the
preceding year. The dip in profitability was because of increase
in the prices of tamarind seeds and is expected to be in the range
of 7-9 per cent over the medium term.
PI's working capital cycle had improved during 2013-14 as
reflected in its gross current assets (GCA) of around 90 days as
on March 31, 2014 from around 135 days as on March 31, 2013. The
firm had large GCA during 2012-13 because of large inventory
level, given the decline in the prices of tamarind seeds. PI
maintains an inventory of around two months and extends credit of
around 45 to 60 days to its customers against that it receives
minimum credit from suppliers. Hence CRISIL believes that PI's
operations will remain moderately working-capital-intensive over
the medium term. The working capital requirements are met through
high reliance on external borrowings, resulting in PI's weak
capital structure of around 1.9 times as on March 31, 2014. The
modest scale of operations and decline in profitability has led to
PI's average debt protection metrics. The firm has modest cash
accruals, however, will be adequate to meet its minimalist term
debt obligations over the medium term. PI's bank lines have
remained utilised at an average of 94 per cent for the 8 months
through December 2014. The liquidity of the firm remains supported
by absence of any significant debt-funded capex plans over the
medium term.
PI was set up in 1998 by the Ruparel family of Gondia,
Maharashtra. The firm manufactures tamarind kernel powder (TKP)
which is used in textile industries for rolling printing on
synthetic fabric.
RELYON PACKS: CRISIL Assigns B- Rating to INR40MM Cash Credit
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to the long-term
bank facilities of Relyon Packs (RP).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 40 CRISIL B-/Stable
Term Loan 19.8 CRISIL B-/Stable
The rating reflects RP's below-average financial risk profile,
marked by high gearing and weak debt protection metrics, and the
firm's modest scale of operations in the highly fragmented
flexible packaging industry. These rating weaknesses are partially
offset by the extensive industry experience of RP's proprietor and
his funding support.
Outlook: Stable
CRISIL believes that RP will continue to benefit over the medium
term from its proprietor's extensive industry experience and
funding support. The outlook may be revised to 'Positive' if the
firm generates significantly high cash accruals backed by
efficient working capital management and substantial capital
infusion, resulting in improvement in its financial risk profile,
particularly its liquidity. Conversely, the outlook may be revised
to 'Negative' if the firm generates substantially low cash
accruals, its working capital management deteriorates, or if it
undertakes a large debt-funded capital expenditure programme,
resulting in deterioration in its liquidity.
Established in 2011 as a proprietorship in Cuttack (Odisha), RP
manufactures flexible laminates and low-density films that
primarily find application in flexible packaging. The firm's day-
to-day operations are managed by Mr. Pritish Sahoo.
SARDAR INDUSTRIES: CRISIL Assigns B+ Rating to INR80MM Cash Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facility of Sardar Industries (SI).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 80 CRISIL B+/Stable
The rating reflects SI's modest scale of operations in the highly
competitive cotton industry, large working capital requirements,
along with expected below-average financial risk profile, marked
by high gearing and weak debt protection metrics. These rating
weaknesses are partially offset by the promoters' extensive
experience in the cotton industry, benefits from the proximity of
the cotton ginning unit to the cotton-growing belt in Gujarat, and
the absence of any long-term debt obligations.
Outlook: Stable
CRISIL believes that SI will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the firm reports
substantial revenue, while improving its profitability and capital
structure. Conversely, the outlook may be revised to 'Negative' if
SI's liquidity weakens with a considerable decline in revenue and
profitability, or deficient working capital management; or if the
financial risk profile weakens because of large debt-funded
capital expenditure.
Set up in 2010, SI is a partnership promoted by the Patel family,
based in Kadi (Gujarat). The firm undertakes cotton ginning and
pressing at its production facility in Kadi.
For 2013-14 (refers to financial year, April 1 to March 31), SI
reported a net profit of INR7 million on sales of INR1271.8
million.
SARVOTTAM ENTERPRISE: ICRA Suspends B+ Rating on INR7cr Cash Loan
-----------------------------------------------------------------
ICRA has suspended the [ICRA]B+ rating assigned to the INR7.00
crore long term working capital limits of Sarvottam Enterprise.
The suspension follows ICRAs inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund Based
Limits - Cash Credit 7.00 [ICRA]B+; Suspended
Incorporated in the year 2005, Sarvottam Enterprise (SE) is
primarily engaged in milling of wheat to manufacture "Maida",
"Atta", "Suji", "Rava" and "Bran". The firm is managed by Mr.
Jilubhai Chauhan along with his brothers Mr. Ashok Chauhan and Mr.
Vanraj Chauhan who have an experience of around eight years in
this line of business. The firm's flour milling unit is located in
Bhavnagar, Gujarat with a milling capacity of 30,000 MTPA (100 MT
per day).
SATYAWATI RICE: CRISIL Reaffirms B Rating on INR145MM Cash Loan
---------------------------------------------------------------
CRISIL's rating on the bank facilities of Satyawati Rice Mill
(SRM) continues to reflect its weak financial risk profile, with
high gearing and average debt protection metrics.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 145 CRISIL B/Stable (Reaffirmed)
Term Loan 5 CRISIL B/Stable (Reaffirmed)
The rating also factors in SRM's small scale of operations in the
highly fragmented rice processing industry, and susceptibility to
erratic rainfall and to volatility in raw material prices. These
rating weaknesses are partially offset by the promoters' extensive
experience in the rice processing industry.
Outlook: Stable
CRISIL believes that SRM will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the firm improves its
financial risk profile, driven by more-than-expected net cash
accruals and infusion of funds by partners, leading to improvement
in capital structure and debt protection metrics along with
moderation in working capital requirements. Conversely, the
outlook may be revised to 'Negative' if SRM's liquidity or capital
structure deteriorates, or its profitability comes under pressure.
SRM was established in 1999 as a partnership firm, by Rakesh
Kumar, Brijesh Kumar, Kamal Prakash, and Vimal Prakash in
Surajpur, Uttar Pradesh. The firm is mainly engaged in milling and
marketing of higher grades of rice, including Basmati. The firm
derives more than 90 per cent of its revenue from sale of basmati
rice. Its milling capacity of 8 tonnes per hour is currently
utilised at about 70 per cent. The firm sells its produce to
exporters.
SHIUR SAKHAR: CRISIL Suspends B Rating on INR450MM Term Loan
------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Shiur
Sakhar Karkhana Pvt Ltd (SSKL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Cash
Credit Limit 146.8 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 103.2 CRISIL B/Stable
Proposed Term Loan 450 CRISIL B/Stable
The suspension of ratings is on account of non-cooperation by SSKL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SSKL is yet to
provide adequate information to enable CRISIL to assess SSKL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
SSKL, incorporated in 2001, is promoted by the Deshmukh and Kawale
families. The company is currently in the process of setting up a
sugar plant (capacity of 2500 tonnes crushed per day) in
Maharashtra.
SHIVAM COTTEX: ICRA Reaffirms B+ Rating on INR6cr Cash Credit
-------------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B+ to the
INR1.50 crore term loan facility and INR6.00 crore cash credit
facility of Shivam Cottex.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based-Term Loan 1.50 [ICRA]B+ reaffirmed
Fund Based- Cash Credit 6.00 [ICRA]B+ reaffirmed
The reaffirmation of rating continues to factor in Shivam
Cottex(SC) modest scale of operations and weak financial position
characterised by thin profitability, stretched liquidity and high
gearing levels. ICRA also takes note of the highly competitive and
fragmented industry structure with the limited value additive
nature of operations which leads to pressure on profitability. The
rating further incorporates the vulnerability of margins to
adverse movements in agricultural produce prices as well recent
low cotton prices augmented by reduced imports by China and
sluggish demand from spinning mills against anticipated high
production. Also, being a partnership firm, any substantial
withdrawal by the partners can have an adverse impact on the
capital structure of the firm.
The rating, however, positively considers the experience of the
partners in the cotton industry as well as the favorable location
of the firm, giving it easy access to high quality raw cotton. The
rating also considers the increased operating income in FY14
driven by increased realization and healthy market demand.
Shivam Cottex (SC) was established in February 2011 as a
partnership firm and is engaged in the ginning and pressing of raw
cotton. It is owned and managed by Mr. Kanubhai Vaghasiya, Mr.
Rameshbhai Vaghasiya, Mr. Ashokbhia Vaghasiya and Mr. Hareshbhai
Vaghasiya. The manufacturing unit is located in Jasdan, Rajkot,
Gujarat. It has 24 ginning machines and one pressing machine
(automatic) with an installed capacity to produce 200 cotton bales
per day (24 hours operation).
Recent Results
In FY14, the firm reported an operating income of INR31.32 crore
and net profit of INR0.17 crore against an operating income of
INR26.97 crore and net profit of INR0.03 crore in FY13
SHREE PARASHNATH: CARE Revises Rating on INR174.54cr Loan to B
--------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of Shree
Parashnath Re-Roolling Mills Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 174.54 CARE B Revised from
CARE BB+ then revised
to CARE B
Short term Bank Facilities 57.75 CARE A4 Revised from
CARE A4+ to CARE D and
then revised to
CARE A4
Rating Rationale
The revision in ratings assigned to Shree Parashnath Re-Roolling
Mills Ltd (SPRML) to 'CARE D' reflects delays in debt servicing by
the company as highlighted in the auditor's report for the year
ended March 31, 2014. The ratings were revised as per CARE's
policy of recognising default.
However, following approval of Corporate Debt Restructuring (CDR)
scheme by the CDR cell, and regularization of debt servicing by
the company from the cut-off date i.e., July 1, 2014 as per the
approved debt restructuring scheme, the ratings have been revised
to 'CARE B'/'CARE A4'.
The ratings are constrained by the low capacity utilisation of the
value added products impacting profitability, deterioration in
debt protection metrics in FY14 (refers to the period April 1 to
March 31), increased working capital intensity due to elongation
of operating cycle, volatility in raw material prices with lack of
backward integration, exposure to foreign exchange fluctuation and
intense competition. The ratings, however, take into account the
infusion of funds by the promoters and diversified clientele.
Effective management of working capital and ability to improve
profitability amidst intense competition and volatile input prices
would remain the key rating sensitivities.
SPRML, incorporated in 2002, was promoted by two brothers, Mr.
Anil Kumar Jain and Mr. Vipin Kumar Jain of Durgapur. The company
commenced operation by setting up 30,000 tpa TMT bars
manufacturing plant in June, 2003. Further, in June, 2005 and May,
2011 it commenced production of structural products (2,20,000 tpa)
and wire rods (1,20,000 tpa). As a backward integration
initiative, SPRML installed induction furnace for manufacturing
billets with an annual capacity of 69,100 tpa in July, 2011.
The company is presently engaged in manufacturing of Billets, Wire
Rods, TMT Bars and Structural products like Angles, Channels,
Joists, H Beam, MS Flat, MS Round and MS Scrap with manufacturing
facility located at Durgapur in West Bengal. The products are sold
under "PARAS" brand. SPRML is also involved in trading of TMT
Bars, wire rods and structural products, albeit on a small scale.
In FY14, SPRML reported net loss of INR10.57 crore on total
operating income of INR512.55 crore as against PAT of INR1.77
crore on total operating income of INR593.07 crore.
SRI BHAVANI: CRISIL Assigns B+ Rating to INR50MM Cash Credit
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Sri Bhavani Wire Industries (SBWI).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 20 CRISIL B+/Stable
The rating reflects SBWI's modest scale of operations and low
profitability in the intensely competitive steel structural
products segment. The rating also factors in the firm's below-
average financial risk profile marked by a weak capital structure
and average debt protection metrics. These rating weaknesses are
partially offset by the promoters' funding support and extensive
experience in the steel trading segment, along with SBWI's
moderate working capital requirements.
Outlook: Stable
CRISIL believes that SBWI will continue to benefit from its
promoters' extensive industry experience. The outlook may be
revised to 'Positive' if the firm reports a significant
improvement in its scale of operations and profitability, leading
to substantial cash accruals. Conversely, the outlook may be
revised to 'Negative', if SBWI's financial risk profile and
liquidity weaken with low cash accruals or stretched working
capital cycle, or any large debt-funded capital expenditure.
SBWI is a partnership established in 2012 by Mr. K Eswara Rao and
Mr. K Naresh Kumar. The firm, based in Visakhapatnam (Andhra
Pradesh), manufactures mild steel wires and trades in iron and
steel products. SBWI's manufacturing facility in Visakhapatnam has
an installed wire drawing capacity of around 4000 tonnes per annum
(tpa).
SRI SARAVANA: ICRA Cuts Rating on INR16cr Fund Based Loan to D
--------------------------------------------------------------
ICRA has downgraded the long-term rating outstanding for the
INR13.68 crore term loan facilities and INR16.00 crore fund based
facilities of Sri Saravana Tex Exports Private Limited from
[ICRA]B+ to [ICRA]D. ICRA has also downgraded the short-term
rating outstanding for the INR5.32 crore non-fund based facilities
of SSTEIPL from [ICRA]A4 to [ICRA]D.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term loan facilities 13.68 [ICRA]D/downgraded
Fund based facilities 16.00 [ICRA]D downgraded
Non-fund based
facilities 5.32 [ICRA]D/downgraded
The rating action factors in the current delays in debt servicing
by the company on the back of tight liquidity conditions stemming
from lower accruals from the business. The ratings also consider
the weak financial profile of the Company characterized by
stretched capital structure and coverage indicators. The ratings
also consider the long standing experience of promoters of the
Company in the business for over two decades. Going forward,
ability of the Company to generate higher accruals through scale
and margin improvement would be critical to service debt repayment
obligations in a timely manner.
Sri Saravana Tex Exports India Private Limited, incorporated in
the year 2005 and situated in Rajapalayam (Tamil nadu), is engaged
in the manufacturing and export of cotton yarn and cotton grey
cloth. The Company is promoted by Mr. Shanmugam, who set up the
spinning operations in early 1990s through a partnership firm,
which has been subsequently converted into SSTEIPL. Currently
operating with an installed capacity of 31,152 spindles and 302
power-looms, the Company produces yarn in the range of 20s to 60s
counts focusing largely on the 30s and 40s counts. The Company
exports major portion of yarn production to China and the entire
production of grey cloth to European countries such as Germany,
France and Spain. The domestic client base for yarn is spread
across the states of Andhra Pradesh, Karnataka and Tamil Nadu.
Recent Results
The company had reported a net profit of INR0.9 crore on an
operating income of INR84.5 crore in 2013-14 as against a net
profit of INR0.1 crore on an operating income of INR64.4 crore
during financial year 2012-13.
SUNIL TRADE: CRISIL Assigns B+ Rating to INR70MM Cash Credit
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Sunil Trade Links (STL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 50 CRISIL A4
Cash Credit 70 CRISIL B+/Stable
The ratings reflect STL's modest scale of operations and exposure
to continued demand for Karbonn Mobiles India Pvt Ltd's (Karbonn)
mobile phones in India, and weak financial risk profile marked by
low net worth, total outside liabilities to tangible net worth and
high gearing. These rating weaknesses are partially offset by the
extensive entrepreneurial experience of STL's promoters in trading
business.
Outlook: Stable
CRISIL believes that STL will benefit over the medium term from
its promoters' experience and established distribution network.
The outlook may be revised to 'Positive' in case of significant
and sustainable increase in STL's scale of operation and
profitability leading to improvement in cash accruals and capital
structure. Conversely, the outlook may be revised to 'Negative' in
case of further deterioration in STL's financial risk profile
especially liquidity on account of substantially low cash accruals
or considerably large working capital requirements.
STL, incorporated in 2014, is promoted by Mr. Kanhaiya Mehrotra
and Ms. Roli Mehrotra at Patna (Bihar). The firm is an authorised
distributor of mobile handsets and smartphones of Karbonn and TATA
salt in Bihar. The firm began its commercial operations from
November 2013 onwards.
SURYA VIJAY: CRISIL Suspends B+ Rating on INR20MM Cash Loan
-----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Surya Vijay Saw Mill (SVSM).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 20 CRISIL B+/Stable
Letter of Credit 100 CRISIL A4
The suspension of ratings is on account of non-cooperation by SVSM
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SVSM is yet to
provide adequate information to enable CRISIL to assess SVSM's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
SVSM was set up in 2000 as a proprietorship firm by Mr. Dayalal M.
Patel and family. It is engaged in the processing and trading of
timber.
TARAK TEXTILES: CRISIL Suspends D Rating on INR80MM Cash Credit
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Tarak Textiles (TT; a part of the Tarak group).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 80 CRISIL D
Letter of Credit 20 CRISIL D
The suspension of ratings is on account of non-cooperation by TT
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, TT is yet to
provide adequate information to enable CRISIL to assess TT's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of TT, CL Jain Woollen Mills Pvt Ltd
(CLJ), and Tarak International (TI), together referred to as the
Tarak group. This is primarily because all the entities are under
the same management and are engaged in manufacturing and trading
in yarn and fabrics. The entities also derive considerable
operational, financial, and business synergies from each other.
The bank lines of TI and CLJ are also cross-guaranteed.
CLJ was set up as a proprietorship firm in 1935 by the late Mr.
Teluram Jain. In 1965, the firm was reconstituted as a partnership
firm and Mr. Subhash Kumar Jain (son of Mr. Teluram Jain) was
admitted as partner. In 1990, CLJ was reconstituted as a private
limited company and in 2000, Mr. Tarak Jain (son of Mr. Subhash
Kumar Jain) joined as the director. In 2009, after the demise of
Mr. Teluram Jain, Mrs. Nagina Devi Jain (mother of Mr. Subhash
Kumar Jain) was appointed as a director in the company. CLJ has an
installed capacity of producing 0.45 million kg of yarn and cloth
each at its unit in Ludhiana (Punjab).
TI was set up as a proprietorship firm in 1999 by Mr. Tarak Jain.
The firm manufactures wool tops (used in manufacturing of yarn)
and yarn. TI's manufacturing unit is located in Ludhiana (Punjab).
TT was set up in 2006 as a partnership firm by Mrs. Payal Jain
(wife of Mr. Tarak Jain) and Mrs. Shubh Jain (wife of Mr. Subhash
Kumar Jain). The firm trades in various types of yarn and fabrics.
TONMOY GOHAI: CRISIL Suspends C Rating on INR200MM Term Loan
------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of M/s.
Tonmoy Gohai (TG).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 25 CRISIL A4
Cash Credit 15 CRISIL C
Proposed Bank Guarantee 25 CRISIL A4
Proposed Cash Credit Limit 15 CRISIL C
Proposed Term Loan 200 CRISIL C
The suspension of ratings is on account of non-cooperation by TG
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, TG is yet to
provide adequate information to enable CRISIL to assess TG's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
TG is a proprietorship concern and started operations in 1986 in
Shivsagar (Assam). The firm is engaged in civil construction work,
mainly roads and bridges, in Assam and Tripura. The firm is also
engaged in conducting surveys and preparing reports for Oil and
Natural Gas Corporation Limited (ONGC, rated CRISIL
AAA/Stable/CRISIL A1+) for oil exploration. The firm is also
diversifying into the business of work-over rigs services for
ONGC.
VEDANT HOSPITAL: CRISIL Suspends D Rating on INR43MM LOC
--------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Vedant
Hospital (Vedant).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 7 CRISIL D
Letter of Credit 43 CRISIL D
Proposed Long Term
Bank Loan Facility 30 CRISIL D
Term Loan 40 CRISIL D
The suspension of ratings is on account of non-cooperation by
Vedant with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, Vedant is yet to
provide adequate information to enable CRISIL to assess Vedant's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
Vedant, a partnership firm, was established by Mr. Balkrishna
Shetty and his wife Mrs. Lata Shetty in 2009. It is setting up a
150-bed multi-speciality hospital at Thane in Mumbai
(Maharashtra). The project is in advanced stage of completion; the
hospital is likely to commence operations in 2013-14 (refers to
financial year, April 1 to March 31).
VIDARBHA WINDING: CRISIL Cuts Rating on INR110MM Loan to 'D'
------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Vidarbha Winding Wires Limited (VWWL) to 'CRISIL D/CRISIL D' from
'CRISIL B-/Negative/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 30 CRISIL D (Downgraded from
'CRISIL B-/Negative')
Cash Credit 110 CRISIL D (Downgraded from
'CRISIL B-/Negative')
Letter of Credit 60 CRISIL D (Downgraded from
'CRISIL A4')
The rating downgrade reflects consistent delays by VWWL in
servicing its debt owing to liquidity constraints. This emanates
from stretched receivables' position.
The ratings reflect the company's low operating margin because of
low value addition by products, susceptibility to intense market
competition arising out of fragmentation in the wire manufacturing
sector, and working capital intensive nature of operations. These
rating weaknesses are partially offset by the extensive experience
of VWWL's promoters in manufacturing winding wires and established
customer relationships.
Incorporated in 1989 and promoted by Mr. Rohit Agarwal, VWWL is a
Nagpur (Maharashtra)-based company. VWWL manufactures bare and
enameled copper and aluminium wires. Such wires are primarily used
for overhead transmission and distribution of electricity.
VISHWAS BAWA: CRISIL Suspends B Rating on INR60MM Overdraft Loan
----------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Vishwas
Bawa Builders (Vishwas).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Overdraft Facility 60 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 20 CRISIL B/Stable
The suspension of ratings is on account of non-cooperation by
Vishwas with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, Vishwas is yet
to provide adequate information to enable CRISIL to assess
Vishwas's ability to service its debt. The suspension reflects
CRISIL's inability to maintain a valid rating in the absence of
adequate information. CRISIL considers information availability
risk as a key credit factor in its rating process and non-sharing
of information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
Vishwas is a partnership firm set up in 2006 by Mr. Abdul Rauf and
his business acquaintance Mr. Ashraf Bawa. Vishwas is engaged in
residential real estate development in Mangalore.
=================
I N D O N E S I A
=================
CIKARANG LISTRINDO: S&P Affirms 'BB-' CCR; Outlook Stable
---------------------------------------------------------
Standard & Poor's Ratings Services said that it had affirmed its
'BB-' long-term corporate credit rating on Indonesia-based power
producer PT Cikarang Listrindo (PTCL). The outlook is stable. At
the same time, S&P affirmed its 'axBB+' long-term ASEAN regional
scale rating on the company. S&P also affirmed its 'BB-' long-
term issue rating n the company's senior secured notes due 2019.
"We affirmed the rating because we expect PTCL's operating
performance, cash flow adequacy, and leverage ratios to remain
solid over the next 12 to 15 months," said Standard & Poor's
credit analyst Xavier Jean. "We expect the company's financial
risk profile to strengthen somewhat in 2015 and 2016, compared
with our earlier projections. We also believe PTCL's favorable
power contracts with cost pass-through support its margin and cash
flow stability."
PTCL's exclusive long-term independent power producer license
within the growing Cikarang industrial estate and the lack of
supply reliability from state-owned integrated power producer PT
Perusahaan Listrik Negara (Persero) (PLN) underpin its competitive
position and enhance volume predictability. The company's new MM
gas-fired power project is coming on-stream in the first half of
2015 and should start contributing to cash flow this year.
S&P also expects PTCL to maintain a solid operating performance
over the next two years with minimal network losses and an
elevated plant availability factor in line with its track record.
PTCL will not have any major maintenance affecting power
availability at its plants in 2015 and 2016.
S&P expects PTCL's revenues to grow in the mid-single digit in
2015 on the back of higher available capacity from the completion
of the MM project and a growing customer base. S&P expects a
similar revenue growth in 2016. One of PTCL's contracts with PLN
for 150 megawatt (MW) capacity is expiring in 2016. S&P expects
PLN to renew the contract, given growing electricity needs
domestically and PTCL's demonstrated record of generating power
according to the contract.
"In our base-case projections for 2015 and 2016, PTCL can fund its
stated capacity expansion plan and its dividend payments with cash
on hand and operating cash flows, with no need for additional
debt. On the basis of annual funds from operations (FFO) of
US$115 million-US$125 million in 2015 and 2016 and debt of US$500
million over the period, we forecast the ratio of FFO to debt at
about 25% over the period. This level is somewhat stronger than
the 21% we earlier anticipated, and we have revised our financial
risk assessment to "significant" from "aggressive" previously. We
also believe PTCL is likely to generate positive free operating
cash flows in 2015 and 2016, under our capital spending
assumption. As a result of our improved assessment of the
company's financial risk profile, we are raising our anchor score
to 'bb' from 'bb-'," S&P said.
S&P expects PTCL to continue investing well above its minimum
maintenance capital spending of about US$50 million per year
beyond 2016. S&P's revision of the company's financial policy to
"negative" from "neutral" captures the possibility of materially
higher capital spending.
"The stable outlook reflects our base-case expectation that PTCL's
revenue will grow steadily over the next 12 months because of
increasing demand from industrial customers and capacity
addition," said Mr. Jean. We also anticipate that cash flows from
the company's operational gas-fired power plants will remain
stable, translating into a ratio of FFO to debt of about 25% in
2015 and 2016. This should provide PTCL some headroom to
withstand temporary spikes in its capital expenditure or modest
pressure on its margins.
S&P views the uncertainty on PTCL's financial policy, especially
its willingness to undertake sizable and long-dated capital
investment, as a limiting factor for any rating upside in the next
12 months. This is despite cash flows from the company's expanded
capacity beginning 2015. S&P could raise the rating if the
company clearly articulates a financial policy and manages its
capital spending and dividend payments such that the ratio of FFO
to debt remains close to 30% on a sustainable basis.
S&P could lower the ratings if: (1) cost overruns, maintenance
expenditure, low plant availability, delays in the construction of
PTCL's coal-fired plant, or aggressive new investments beyond
S&P's base case keep the ratio of FFO to debt below 20% on a
sustained basis; or (2) the company enhances shareholders' return
aggressively, such as paying high dividends.
SOLUSI TUNAS: Fitch Assigns 'BB-' IDR; Outlook Stable
-----------------------------------------------------
Fitch Ratings has assigned Indonesia-based independent tower
operator, PT Solusi Tunas Pratama Tbk (STP), Long-Term Foreign-
and Local-Currency Issuer Default Ratings (IDR) of 'BB-' and a
senior unsecured rating of 'BB-'. Fitch Ratings Indonesia has
also assigned a National-Long Term Rating of 'A+(idn)'. The
Outlook on the IDRs and National Rating is Stable.
Fitch has also assigned STP's wholly owned subsidiary, Pratama
Agung Pte. Ltd.'s proposed US dollar senior unsecured notes due
2020 an expected rating of 'BB-(EXP)'. The notes will be
unconditionally and irrevocably guaranteed by STP and are
therefore rated at the same level as its foreign-currency senior
unsecured rating. The final rating of the proposed notes is
contingent upon the receipt of documents conforming to information
already received.
STP will use all the proceeds of the note issue to partially
refinance its six-month USD790m bridge loan facility that was used
to finance the acquisition of 3,500 towers from PT XL Axiata Tbk
(XL; BBB/Stable) for IDR5.6trn (USD467m). The bridge loan of
USD790m was partly refinanced through an equity offering of
IDR2.4trn. A part of the equity offering included the conversion
of shareholder loans of IDR462.5bn into equity. STP plans to
refinance the rest of the bridge loan through a combination of a
secured term loan and the proposed US dollar notes.
'A' National Ratings denote expectations of low default risk
relative to other issuers or obligations in the same country.
However, changes in circumstances or economic conditions may
affect the capacity for timely repayment to a greater degree than
is the case for financial commitments denoted by a higher rated
category.
KEY RATING DRIVERS
Higher Leverage and Smaller Size: STP's 'BB-' IDR is a notch lower
than that of the top two independent tower operators in Indonesia
- PT Tower Bersama Infrastructure Tbk (TBI; BB/Stable) and PT
Profesional Telekomunikasi Indonesia (Protelindo; BB/Positive) -
due to its higher leverage, earlier stage in the growth cycle and
weaker organic growth capabilities. At end-2014, it was the
third-largest independent tower operator with 6,651 towers and
total tenancies of 10,521. TBI leads the industry with 15,200
towers followed by Protelindo with 11,200 towers.
Commitment to Deleverage: The ratings incorporate management's
commitment to deleverage and our expectation that STP will manage
its FFO-adjusted net leverage to well below 5.0x during 2015-16.
In the absence of further debt-funded acquisitions, deleveraging
is likely as capex will be modest and dividend payments are
limited based on conditions in the proposed bonds and proposed
secured term loan. STP is likely to add only around 500-600
towers during 2015-17 (2012-14: 100-400 tower additions) - much
lower than 1,500-2,000 annual tower additions by TBIG and
Protelindo.
Nevertheless, should the company pursue growth through further
debt-funded acquisitions, the ratings may be downgraded if FFO-
adjusted net leverage rises above 5.0x
Moderate Tenancy Mix: STP's credit profile benefits from its
ability to generate highly visible cash flows backed by long-term
non-cancellable contracts with in-built escalation clauses (except
for the lease agreements for the towers acquired from XL). Fitch
forecasts STP's 2015 operating EBITDAR margin to be around 82%-83%
- similar to Protelindo's 82% and higher than TBIG's 75%-76%.
Fitch also forecasts that 63% of STP's 2015 revenue will come from
the country's three largest telcos, which have investment grade
ratings. This proportion is better than Protelindo's 50%, but
lower than TBIG's 80%.
Notes Not Notched: Fitch's 'BB-(EXP)' rating on the proposed US
dollar senior unsecured notes is based on average recovery in a
distressed scenario, despite the notes ranking behind the proposed
secured term loan. Prior-ranking debt/EBITDA is likely to be
below the 2.0x-2.5x threshold at which Fitch considers notching
senior unsecured debt below the IDR. The high proportion of STP's
operating cash flows that are contractually locked-in (USD1.1bn at
end-2014) also supports recovery. Structural subordination is not
an issue as STP generates over 90% of the group's revenue and
EBITDA.
Adequate Liquidity: Fitch believes that STP's liquidity is
adequate and is not dependent on the success of the proposed
notes. Its existing bridge loan is underwritten by five
international banks and will convert into a four and a half year
term loan in the event that STP is unable to issue the proposed
notes by June 8, 2015. The company plans to significantly hedge
its US dollar debt exposure in 2015.
Historical Exposure to Bakrie: STP's 2014 financial performance
was affected because PT Bakrie Telecom Tbk did not pay its rent.
At end-September 2014, Bakrie Telecom accounted for 15% of STP's
year-to-date revenue and owed around IDR489bn to STP. Compared to
STP, both TBI and Protelindo have lower exposure to Bakrie Telecom
at 3% and 4% of revenue respectively. In December 2014, Bakrie
Telecom's creditors approved a restructuring plan, which allowed
for 70% of receivables to be converted into Bakrie Telecom shares
and the remaining 30% to be paid over five-seven years. Fitch's
financial analysis assumed no cash recovery from Bakrie Telecom.
RATING SENSITIVITIES
Positive: Future developments that could individually or
collectively lead to positive rating actions include:
-- FFO-adjusted net leverage lower than 3.5x on a sustained
basis along with revenue contribution from investment-grade
telcos remaining above 60%.
-- Demonstration of organic growth potential in-line with its
peers.
Negative: Future developments that could individually or
collectively lead to negative rating actions include:
-- Another debt-funded acquisition or higher-than-expected
capex leading to FFO-adjusted net leverage remaining above
5.0x on a sustained basis.
=========
J A P A N
=========
MT. GOX: Bitcoinica Liquidators Soon to Make NZ$23-Mln Claim
------------------------------------------------------------
The New Zealand Herald reports that the liquidators of a
New Zealand bitcoin trading platform will soon be able to make a
claim for NZ$23 million worth of the digital currency that was
being held with a now-bankrupt Japanese exchange, MtGox Co., Ltd.
New Zealand limited partnership Bitcoinica owned and managed a
digital currency trading platform but shut down in 2012 after
bitcoin and fiat currency were stolen from it, the report
discloses.
After being appointed, liquidators Anthony McCullagh and Stephen
Lawrence from PKF believed the partnership had 64,532 bitcoin and
US$135,000 in the now defunct Mt Gox. Following lengthy
wrangling, the liquidators had just obtained access to two of the
accounts holding these bitcoin the month before Japan-based Mt Gox
stopped trading last February, according to the Herald.
Mt Gox was once the world's largest bitcoin exchange but collapsed
into bankruptcy last year after the apparent theft of more than
700,000 bitcoin, worth more than $500 million at the time, the
report notes.
The Herald relates that based on Mt Gox's accounts, the
liquidators believe the 64,000 bitcoin holding means the
partnership makes up around 8.5 per cent of the creditor claims in
the exchange's bankruptcy.
In their latest report, filed with the Companies Register this
month, the liquidators said the Mt Gox trustee recently advised
the system for filing creditor claims would be set up this April
and run until the end of May, the Herald relays.
PKF's Chris McCullagh told the Herald that it would be claiming
for the full 64,000 bitcoin, which based on Jan. 27's prices are
worth about $23 million.
"Whether those claims are accepted is a different story," the
Herald quotes Mr. McCullagh as saying.
The liquidators believe that, if their claim is accepted, any
payout from Mt Gox would not come until at least October this
year, the Herald notes.
"It is unknown at this stage what assets will be available for
distribution to Bitcoinica, and in what form the distribution will
be made [ie fiat currency and/or bitcoins]," the liquidators, as
cited by Herald, said.
About 200 creditors have made claims with Bitcoinica and
Mr. McCullagh said he was not aware of any who were from
New Zealand, the Herald states. These creditors are claiming
91,339 bitcoin, US$248,000 in cash and US$276,000 in leveraged
trading positions, the Herald discloses.
The liquidators have not accepted or rejected these claims and
said they will assess them if they are successful in securing the
bitcoin and funds held by Mt Gox, the Herald relays.
"It is likely that we will also need to seek directions from the
High Court of New Zealand on the method of distribution of the
assets," the liquidators said, add the Herald.
About Mt. Gox
Bitcoin exchange MtGox Co., Ltd., filed a petition under Chapter
15 of the U.S. Bankruptcy Code on March 9, 2014, days after the
company sought bankruptcy protection in Japan. The bankruptcy in
Japan came after the bitcoin exchange lost 850,000 bitcoins valued
at about $475 million "disappeared."
The Japanese bitcoin exchange halted trading in February 2014. It
filed for bankruptcy protection in the U.S. to prevent customers
from targeting the cash it holds in U.S. bank accounts.
The Chapter 15 case is In re MtGox Co., Ltd., Case No. 14-31229
(Bankr. N.D. Tex.). The Chapter 15 Petitioner is Robert Marie
Mark Karpeles, the company's chief executive officer. Mr.
Karpeles is represented by John E. Mitchell, Esq., and David
William Parham, Esq., at Baker & Mcckenzie LLP, in Dallas, Texas.
The bankruptcy trustee and foreign representative of MtGox Co.
Ltd. with respect to the Japan Bankruptcy Proceedings:
MtGox Co., Ltd.
Office of Bankruptcy Trustee
Kojimachi 3 chome building #202
Kojimachi 3-4-1
Chiyoda-ku, Tokyo
Tel: +81-3-4588-3922
Attn: Nobuaki Kobayashi
The Ontario Superior Court of Justice (Commercial List) on
Oct. 3, 2014, ordered, pursuant to Section 272 of the Bankruptcy
and Insolvency Act, that the bankruptcy proceedings commenced with
respect to MtGox Co., Ltd. -- aka Mt. Gox KK and dba MtGox
-- be recognized as a "foreign main proceeding."
The Canadian legal counsel to the bankruptcy trustee and foreign
representative of MtGox Co., Ltd, are:
MILLER THOMSON LLP
Scotia Plaza
40 King Street West, Suite 5800
PO Box 1011
Toronto, ON Canada M5H 3S1
Tel: 416-595-8615/8577
Fax: 416-595-8695
Attn: Jeffrey Carhart/ Margaret Sims
The company said it has estimated assets of $10 million to
$50 million and debts of $50 million to $100 million.
SKYMARK AIRLINES: Eyes Another Airline's Help for Rehabilitation
----------------------------------------------------------------
Kyodo News reports that Skymark Airlines Inc. is eyeing seeking
another airline's assistance for its rehabilitation plan involving
cost-cutting steps such as joint procurement of fuel, according to
a document filed with the Tokyo District Court.
The application seeking court protection from creditors, filed
Jan. 28, also shows that the company's cash reserves have
decreased to around JPY300 million, Kyodo relates.
According to Kyodo, the third-largest Japanese carrier is believed
to have given up on rebuilding on its own after facing difficulty
in making necessary payments, such as airport fees, of around JPY4
billion by the end of last month needed to continue operations.
The document said that with the help of another airline, Skymark
would be able to improve its business efficiency through
cooperation in ticket sales and providing training for crew in
addition to joint fuel procurement, Kyodo relays.
"We aim to drastically improve our management situation more
swiftly," it said.
Kyodo notes that Skymark Chairman Takashi Ide said at a news
conference Jan. 29 that the main point of rehabilitation will be
that the airline will remain as "the third force."
Meanwhile, Kyodo News reports that the company said it will
postpone the release of its April-December earnings, scheduled for
Thursday, to Feb. 12 to have its bankruptcy situation reflected in
the financial results.
Kyodo recalls that ANA Holdings Inc., which owns All Nippon
Airways Co., has said it will consider providing assistance to the
troubled carrier by monitoring the situation.
Tokyo-based investment fund Integral Corp. is considering
providing around JPY10 billion to allow the airline to continue
operations for the near term, the report adds.
About Skymark Airlines
Skymark Airlines is a Japanese low-cost carrier based in Tokyo.
The carrier, which commenced operations in 1998, operates domestic
service from its base at Tokyo International Airport.
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 30, 2015, Bloomberg News said Skymark Airlines Inc., Japan's
third-largest carrier, filed for bankruptcy protection after
running short of cash, highlighting the failure of growth plans
that climaxed in the ill-fated purchase of six Airbus Group NV
A380 superjumbos.
Skymark said it filed at the Tokyo District Court with
JPY71 billion ($603 million) in liabilities. President Shinichi
Nishikubo is standing down and Chief Financial Officer
Masakazu Arimori is taking on the role, Bloomberg related. It will
be delisted on March 1, the Tokyo Stock Exchange said.
====================
N E W Z E A L A N D
====================
LOWIE RECRUITMENT: In Liquidation; Owes IRD Nearly NZ$1 Million
---------------------------------------------------------------
Hamish Fletcher at The New Zealand Herald reports that
New Zealand league legend Graham Lowe's former recruitment company
has been put into liquidation owing Inland Revenue almost NZ$1
million.
But the 10-staff business that Lowie Recruitment Ltd operated is
still running and was sold to another firm before the insolvency,
liquidators said on Jan. 30, NZ Herald relates.
Although the business -- still trading as Lowie Recruitment --
continues to use Lowe's nickname, the former Manly, Queensland and
Kiwis coach is no longer involved in it, a staff member told the
Weekend Herald.
The business is now run as a division of Pounamu International, a
company co-directed by former New Zealand Rugby League chairman
Andrew Chalmers, according to the report.
NZ Herald says Mr. Chalmers directed the now-liquidated Lowie
Recruitment alongside Mr. Lowe, who resigned from its board in
October last year about two months before liquidators were
appointed.
According to NZ Herald, liquidator Mike Lamacraft --
mike@meltzermason.co.nz -- in his first report said that the
company fell behind in its tax obligations and was unable to reach
a repayment deal with Inland Revenue.
After the IRD served it a demand, the company decided to go into
voluntary liquidation shortly before Christmas, NZ Herald says.
NZ Herald relates that the liquidators said the company owes IRD
NZ$960,000 and other creditors NZ$40,000.
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
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.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Julie Anne L. Toledo, and Peter A. Chapman,
Editors.
Copyright 2015. 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 or Nina Novak at 202-362-8552.
*** End of Transmission ***