/raid1/www/Hosts/bankrupt/TCRAP_Public/190326.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
Tuesday, March 26, 2019, Vol. 22, No. 61
Headlines
A U S T R A L I A
CROCKETS PTY: Second Creditors' Meeting Set for April 1
HIGGINS SIGNS: Second Creditors' Meeting Set for April 2
ICUE HOMES: Second Creditors' Meeting Set for April 2
S.R. & B.R. LEE-ARCHER: Second Creditors' Meeting Set for April 3
WES Q: Second Creditors' Meeting Set for April 2
C A M B O D I A
CAMBODIA: Faces Major Economic Blow as EU Weighs Ending Trade Deal
I N D I A
DHANA IMPEX: CRISIL Retains C Rating in Not Cooperating Category
GOURAV POULTRIES: CRISIL Maintains C Ratings in Not Cooperating
HOTEL DELITE: CRISIL Maintains 'B+' Rating in Not Cooperating
INDIAN SUGAR: CRISIL Keeps D Rating in Not Cooperating Category
INFINITAS ENERGY: NCLT Dismisses Liberty's Bid vs. Plan Rejection
JAIHIND AUTOMATION: CRISIL Maintains B+ Rating in Not Cooperating
JYOTI STRUCTURES: NCLAT Sets Aside Order to Liquidate Firm
KPG INTERNATIONAL: CARE Cuts Rating on INR4.50cr Loan to D
LEEWAY LOGISTICS: CRISIL Maintains 'D' Ratings in Not Cooperating
MALLEMAALA AGRO: CRISIL Maintains 'B' Ratings in Not Cooperating
MARKS ENTERPRISES: CRISIL Maintains D Rating in Not Cooperating
MATHURA AGRO: CRISIL Maintains 'B-' Ratings in Not Cooperating
MODERN INDIA: CRISIL Retains D Rating in Not Cooperating Category
NATWEST ESTATES: CRISIL Maintains B+ Rating in Not Cooperating
NAVEEN TIMBER: CRISIL Maintains 'D' Rating in Not Cooperating
OHM PIPES: CRISIL Maintains 'B' Ratings in Not Cooperating
ORBICULAR PHARMA: CRISIL Maintains B+ Ratings in Not Cooperating
PARAGON KNITS: CRISIL Lowers Rating on INR25.86cr Loan to D
RAHIL COLD: CARE Migrates B Rating to Not Cooperating Category
SADHU SINGH: CRISIL Maintains 'B+' Rating in Not Cooperating
SAP HOLDINGS: CRISIL Assigns B- Rating to INR7.5cr Cash Loan
SELGA STEEL: CARE Reaffirms B+ Rating on INR8cr LT Loan
SURAJ VALUE: CARE Lowers Rating on INR10.61cr Loan to D
THIRUVANANTHPURAM ROAD: CARE Lowers Rating on INR42.02cr Loan to D
TIRUMALA DALL: CARE Lowers Rating on INR7cr LT Loan to D
TRIVENI WIRES: CARE Lowers Rating on INR35.79cr LT Loan to D
J A P A N
MITSUBISHI HEAVY: Court Orders Assets Seizure Over WWII Labor Case
N E W Z E A L A N D
MAINZEAL PROPERTY: Richard Yan Appeals NZ$36 Million Liability
S I N G A P O R E
HYFLUX LTD: Urged to Chase Salim-Medco for Updates on Rescue Deal
- - - - -
=================
A U S T R A L I A
=================
CROCKETS PTY: Second Creditors' Meeting Set for April 1
-------------------------------------------------------
A second meeting of creditors in the proceedings of Crockets Pty.
Ltd, trading as Camooweal Driveway, has been set for April 1, 2019,
at 11:00 a.m. at the offices of Deloitte Financial Advisory Pty Ltd
, at Riverside Centre, Level 23, 123 Eagle Street, in Brisbane,
Queensland.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by March 29, 2019, at 4:00 p.m.
David Ian Mansfield of Deloitte Financial Advisory was appointed as
administrator of Crockets Pty on March 5, 2019.
HIGGINS SIGNS: Second Creditors' Meeting Set for April 2
--------------------------------------------------------
A second meeting of creditors in the proceedings of Higgins Signs &
Plastics Pty Ltd has been set for April 2, 2019, at 10:30 a.m. at
the offices of Hall Chadwick Chartered Accountants, at Level 4, 240
Queen Street, in Brisbane, Queensland.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by April 1, 2019, at 5:00 p.m.
Brent Trevor-Alex Kijurina and Richard Albarran of Hall Chadwick
were appointed as administrators of Higgins Signs on Feb. 27,
2019.
ICUE HOMES: Second Creditors' Meeting Set for April 2
-----------------------------------------------------
A second meeting of creditors in the proceedings of iCUE Homes Pty
Ltd, trading as Innovation Nation, has been set for April 2, 2019,
at 2:00 p.m. at Level 15, 114 William Street, in Melbourne,
Victoria.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by April 1, 2019, at 5:00 p.m.
Matthew Kucianski of Worrells Solvency & Forensic Accountants was
appointed as administrator of iCUE Homes on Feb. 25, 2019.
S.R. & B.R. LEE-ARCHER: Second Creditors' Meeting Set for April 3
-----------------------------------------------------------------
A second meeting of creditors in the proceedings of S.R. & B.R.
Lee-Archer Pty Ltd ATF Lee-Archer Trading Trust has been set for
April 3, 2019, at 11:00 a.m. at the offices of Romanis Cant, at
Level 2, 106 Hardware Street, in Melbourne, Victoria.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by April 2, 2019, at 5:00 p.m.
Anthony Robert Cant and Renee Sarah Di Carlo of Romanis Cant were
appointed as administrators of S.R. & B.R. Lee-Archer on Feb. 27,
2019.
WES Q: Second Creditors' Meeting Set for April 2
------------------------------------------------
A second meeting of creditors in the proceedings of Wes Q Pty Ltd
has been set for April 2, 2019, at 11:00 a.m. at the offices of SV
Partners, at 22 Market Street, in Brisbane, Queensland.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by March 28, 2019, at 4:00 p.m.
Anne Meagher and Terry Grant van der Velde of SV Partners were
appointed as administrators of Wes Q Pty on Feb. 26, 2019.
===============
C A M B O D I A
===============
CAMBODIA: Faces Major Economic Blow as EU Weighs Ending Trade Deal
------------------------------------------------------------------
Seth Mydans at The New York Times reports that Cambodia faces a
serious blow to its economy as the European Union investigates the
government's deteriorating human rights record and considers
revoking a special trading deal with the country.
For 17 years, Cambodia has benefited from preferential access to
the European Union a major trading partner, under a program called
Everything but Arms, which allows what the bloc calls "vulnerable
developing countries" to pay fewer or no duties on all their
exports to the bloc, except weapons and ammunition, the New York
Times relates. The trading deal has contributed to a period of
rapid economic growth in Cambodia.
But the program stipulates that countries meet international norms
of human rights and democracy. Instead, Cambodia has engaged in one
of its harshest waves of repression in recent years, actions that
have prompted the European Union to consider ejecting the country
from the program, The New York Times says.
According to The New York Times, the bloc has said that the
Cambodian government has engaged in "serious and systematic
violations of core human rights and labor rights," and in February,
it set in motion an 18-month process that could lead to the
suspension of Cambodia's preferential status under the Everything
but Arms program.
Last week, senior officials from the European Union visited the
Cambodian capital, Phnom Penh, in the first scheduled talks under
the formal suspension process, the report recalls. It will include
six months of monitoring and talks, then a further six months
during which the commission will reach its final decision. Any
withdrawal would take another six months.
In 2017, Cambodia sold $5.8 billion of goods to the European Union,
about 40 percent of the country's total exports, the report says.
According to The New York Times, since gaining access to the
European market in 2001, the textile industry has grown rapidly and
now employs about 700,000 people. Most are women, and their wages
are often the main source of financial support for families in poor
villages around Cambodia.
The New York Times relates that Sebastian Strangio, a Southeast
Asia expert and author of the historical study "Hun Sen's
Cambodia," said that access to Everything but Arms and similar
programs had been "vital in the development of Cambodia's garment
and apparel manufacturing sector - by far the country's largest
source of export revenue."
The New York Times says the government of Prime Minister Hun Sen
has dissolved the main opposition party, the Cambodia National
Rescue Party, and jailed and then released the party's leader, Kem
Sokha, causing other party members to flee overseas. The
authorities have also cracked down on independent news media, most
notably with the forced closing of The Cambodia Daily; harassed
local rights defenders and land activists; and curtailed rights to
free expression and assembly.
Those actions, effectively resulting in the imposition of one-party
rule, contributed to the European Union's investigation.
"It should be clear that today's move is neither a final decision
nor the end of the process," the European Union trade commissioner,
Cecilia Malmstrom, said in February when the suspension process was
announced, the report relays. "But the clock is now officially
ticking, and we need to see real action soon."
According to the report, the visit by the European Union
delegation, and the process of suspension, has served to fire Mr.
Hun Sen's longstanding resentment of what he calls the interference
of Western countries on issues of human rights and democracy.
The New York Times relates that Lao Mong Hay, a leading political
analyst in Cambodia, said, "Hun Sen is very determined not to trade
what he calls national sovereignty and independence for foreign
aid."
He added that the prime minister was engaging in his "classic
strategy to negotiate from strength, while wearing down his
interlocutors," the report relays.
Mr. Hun Sen did not meet the European delegation. During the
officials' visit, he toured a local factory and expressed defiance
about the suspension process, says The New York Times.
"I have nothing to be afraid of in talking about this," the report
quotes Mr. Hun Sen as saying. "Who is doing the monitoring? I have
already said that if they give us preferential access, it won't
make us rich. If they withdraw it from us, it won't make us dead."
In January, referring to the ramifications of the end of access to
the program, he warned the European Union: "If you want the
opposition dead, just cut it. If you want the opposition alive,
don't do it, and come and hold talks together," The New York Times
relays.
In what seemed a provocative move in the week before the
delegation's visit, a government-friendly court in Phnom Penh
issued indictments against eight opposition members who fled the
country last year, The New York Times reports. They had been
talking of returning to Cambodia, but the indictment effectively
prevented their return.
The New York Times relates that Phil Robertson, deputy director of
the Asia division of Human Rights Watch, said, "Prime Minister Hun
Sen and his government have no one but themselves to blame for
their predicament."
"There is still hope as the E.B.A. decision deadline approaches,"
Mr. Robertson said, referring to the Everything but Arms agreement,
"the Cambodian government will finally look over the cliff and
realize it doesn't want to go that way - and come back to the
bargaining table on human rights issues with the E.U."
=========
I N D I A
=========
DHANA IMPEX: CRISIL Retains C Rating in Not Cooperating Category
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Dhana Impex (DI)
continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.4 CRISIL C (ISSUER NOT
COOPERATING)
Letter of Credit 2.5 CRISIL A4 (ISSUER NOT
COOPERATING)
Proposed Long Term 0.1 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with DI for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of DI, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on DI is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of DI continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer
not cooperating'.
Set up in 1995, DI is a proprietorship firm trading in stamping
foils, specialty films and engineering adhesives. The firm is based
in Chennai and operations are managed by proprietor Mr Kamalakannan
T.
GOURAV POULTRIES: CRISIL Maintains C Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Gourav Poultries
India Private Limited (GPPL; part of the Rathi group) continues to
be 'CRISIL C Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL C (ISSUER NOT
COOPERATING)
Proposed Long Term 1.33 CRISIL C (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 12.12 CRISIL C (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with GPPL for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of GPPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on GPPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of GPPL continues to be 'CRISIL C Issuer not
cooperating'.
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of GPPL, Rathi Feeds India Pvt. Ltd. (RFPL)
and RHPL. This is because the companies, collectively referred to
as the Rathi group are in the same line of business, extend
financial support to each other, and have a common management.
Furthermore, the company has not paid the fee for conducting rating
surveillance as agreed to in the rating agreement.
RHPL and GPPL are engaged in poultry breeding, hatching and
broiling, and RFPL in feed processing.
RHPL was set up in 2003 by the Haryana-based Mr. Krishan Rathi and
his family members as a hatchery-cum-broiler unit. It has day-old
chick breeder farms with capacity of 220,000 parent birds in Jind
Haryana).
GPPL, set up in 2012, also owns a hatchery-cum-broiler unit. It has
day-old chick breeder farms with capacity of 150,000 parent birds
in Jind.
RFPL was set up in 2008 and is a feed processing unit and meets the
group's feed requirements. The group internally consumes around 60
per cent of feed processed by RFPL and sells the balance in the
open market. Its feed processing capacity is 200 tonne per day.
HOTEL DELITE: CRISIL Maintains 'B+' Rating in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Hotel Delite Grand
(HDG) continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft 2 CRISIL A4 (ISSUER NOT
COOPERATING)
Term Loan 8 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with HDG for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of HDG, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on HDG is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of HDG continues to be 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
Established in 2016, HDG is a Faridabad (Haryana)-based partnership
between Mr Ram Sharan Bhatia and Ms Radha Rani Virmani.
Currently, it is managed by Mr Ram Sharan Bhatia, and sons of Ms
Radha Rani Virmani, Mr Rajan Virmani and Mr Sunil Virmani. The
hotel has 42 rooms, 6 banquet halls, and one restaurant-cum-bar.
The hotel became operational from May 2015 onwards, and operates
under the Delite brand.
INDIAN SUGAR: CRISIL Keeps D Rating in Not Cooperating Category
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Indian Sugar
Manufacturing Company Limited (ISMCL) continues to be 'CRISIL D
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 29.21 CRISIL D (ISSUER NOT
COOPERATING)
Term Loan 43.79 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with ISMCL for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of ISMCL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ISMCL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of ISMCL continues to be 'CRISIL D Issuer not
cooperating'.
ISMCL was set up in 2000 by Dr. Veerana Pattar and his colleagues.
In January 2010, the company commissioned a sugar plant and a
bagasse-based cogeneration power plant in Bijapur (Karnataka).
INFINITAS ENERGY: NCLT Dismisses Liberty's Bid vs. Plan Rejection
-----------------------------------------------------------------
The Financial Express reports that the Chennai bench of the
National Company Law Tribunal (NCLT), citing the legal position
laid down by the Supreme Court recently, has dismissed an
application by UK-based industrial and metals company Liberty House
group, challenging the rejection of its resolution plan for
Chennai-based beleaguered renewable power infrastructure solution
provider, Infinitas Energy Solutions.
According to FE, the bench of Mohd Sharief Tariq ruled that the
resolution professional, the adjudicating authority or appellate
authority, were not empowered to reverse the commercial decision of
committee of creditors (CoC).
In view of the reasons recorded by the CoC for rejection of the
resolution plan by Liberty House and the legal proposition laid
down by the apex court, the resolution applicant has no vested
right to challenge the rejection of its resolution plan, he said,
FE relates.
FE says the SC had ruled that the NCLT has no authority to evaluate
the commercial decision of the CoC to approve or reject a proposed
resolution plan in K Sashidhar vs Indian Overseas Bank case. The SC
said that there was no provision in the Insolvency and Bankruptcy
Code (IBC) that empowers the resolution professional or the
adjudicating authorities (NCLT & NCLAT) to reverse the commercial
decision of the CoC.
According to the report, Liberty House, which filed the plea
against the rejection, said the main issue it wanted to get an
answer was as to whether the liquidation of the corporate debtor
(Infinitas Energy) can be permitted if a resolution plan is
rejected for reasons extraneous to the scheme of the IBC.
FE notes that Liberty House had proposed to infuse money in excess
of INR100 crore to run Infinitas Energy and thereby increasing the
possibility of the contingent payments being realised. However, CoC
rejected the proposal and filed for the liquidation of the company,
it added.
FE says the main contention of the CoC was that creditors would be
subject to significant haircut if the resolution plan is accepted
and offer materially lower than the one time settlement offer made
by the company in 2016. The CoC pointed out that the financial
creditors are possessed with better recovery options than that
proposed by the resolution applicant.
FE relates that the NCLT bench observed that the CoC, while
rejecting or accepting the resolution plan, is under obligation to
strike a balance between the interests of the creditors and
corporate debtor.
The element of realisibility under the resolution plan or
liquidation is an important aspect which the CoC has to keep in
mind at the time of making decisions, the report states. The
resolution applicant or the promoters cannot thrust their will on
the creditors who have already been pushed to odd position with
regard to the recovery of their legitimate dues, adds FE.
Infinitas Energy Solutions, formerly known as Trishe Renewable
Energy Solutions, was dragged to NCLT by one of its lenders, Indian
Bank, alleging a default of over INR41-crore loan and subsequently
corporate insolvency resolution process was ordered on Sept. 18,
2017, FE discloses. The financially-troubled company also had loan
defaults towards a slew of other banks, including Punjab National
Bank.
Infinitas Energy Solutions Private Limited provides wind, solar,
community wind, oil refining, and other infrastructure solutions.
It also provides various services, including energy assessment, due
diligence, land acquisition, power evacuation, civil
infrastructure, equipment and installations, and power sale
agreements. It develops wind farms in India, the United Kingdom,
and the United States.
JAIHIND AUTOMATION: CRISIL Maintains B+ Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Jaihind Automation
Private Limited (JAPL) continues to be 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Letter of Credit 1 CRISIL A4 (ISSUER NOT
COOPERATING)
Rupee Term Loan 3.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with JAPL for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of JAPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on JAPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of JAPL continues to be 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
JAPL was established 1990 as a proprietorship concern by Mr V
Sugathan; the firm was reconstituted as a private limited company
in 2003. It manufactures injection-moulded plastic components for
the automotive industry. The company is based in Pune, Maharashtra,
and has two units, with one in Pune and the other in Sanand,
Gujarat.
JYOTI STRUCTURES: NCLAT Sets Aside Order to Liquidate Firm
----------------------------------------------------------
The Hindu BusinessLine reports that the National Company Law
Appellate Tribunal (NCLAT) has set aside an order to liquidate
Jyoti Structure. It has also asked the Mumbai Bench of the National
Company Law Tribunal (NCLT) to consider the INR4,000-crore
resolution plan submitted by Sharad Sanghi and others.
Allowing the appeal filed by Sanghi in this regard, a two-member
NCLAT Bench headed by Chairman Justice SJ Mukhopadhaya remitted
back the matter to the NCLT, directing it to pass an order within
two weeks, according to the Hindu BusinessLine.
Last July, the NCLT had rejected the resolution plan submitted by
Sanghi and passed an order to liquidate Jyoti Structure, which had
a debt of INR7,010.55 crore, the Hindu BusinessLine recalls.
According to the INR3,965.06-crore resolution plan submitted by
Sanghi, MD and CEO of IT solutions provider Netmagic, INR50 crore
will come as an upfront payment followed by INR75 crore in the next
one year. The remaining will come as staggered payments in 15 years
from the effective date, the report says.
Earlier, the Committee of Creditors (CoC) saw 62.66 per cent votes
in favor of the resolution plan, while 23.12 per cent was against
and the remaining 14.21 per cent abstained from voting. Later, some
members of the CoC changed their plans and the plan got 81.3 per
cent approval.
However, Sanghi's resolution plan was rejected by the NCLT on two
grounds: the total period of 270 days as mandated under IBC had
lapsed by the time last voting took place, on April 2, 2018, and
was approved with majority; secondly, as on March 26 and 27, 2018,
the voting percentage was 62.66 per cent, which was less than 75
per cent votes of financial creditors, the report says.
Jyoti Structures Limited operates as an engineering, procurement,
tower testing, manufacturing, and construction company in the
transmission lines, substations, and distribution sectors in India
and internationally.
Jyoti was referred to the NCLT for proceedings under the Insolvency
and Bankruptcy Code (IBC) in June 2017.
The company owes lenders around INR70 billion, and was part of the
Reserve Bank of India's first list of stressed companies to be
taken for insolvency proceedings.
KPG INTERNATIONAL: CARE Cuts Rating on INR4.50cr Loan to D
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
KPG International Private Limited (KPG), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 4.50 CARE D; Issuer not cooperating;
Facilities Revised from CARE B+; Stable
on the basis of best available
information
Short-term Bank 4.00 CARE D; Issuer not cooperating;
Facilities Revised from CARE A4 on the
basis of best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from KPG to monitor the ratings
vide e-mail communications/ letters dated February 26, 2019,
February 21, 2019, February 2, 2019, January 17, 2019, December 24,
2018 and November 22, 2018, and numerous phone calls. However,
despite CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating. The rating on KPG's
bank facilities will now be denoted as CARE D; ISSUER NOT
COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The rating has been revised on account of ongoing delays in
servicing the interest obligations.
Detailed description of the key rating drivers
Key Rating Weakness
Ongoing delays in servicing debt obligation: There are ongoing
delays in servicing of interest obligations on account of stretched
liquidity position.
Delhi based, KPG was incorporated in October, 2016 and commenced
its commercial operations in December, 2016. The company is
currently being managed by Mr. Gaurav Mahendru and Mr. RC Mahendru.
KPG is engaged in manufacturing and trading of garments. KPG sells
the product in the brand name 'Howzat' to wholesalers and retailers
located in Delhi.
LEEWAY LOGISTICS: CRISIL Maintains 'D' Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Leeway Logistics
Limited (Leeway) continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 153.25 CRISIL D (ISSUER NOT
COOPERATING)
Letter of Credit 25.00 CRISIL D (ISSUER NOT
COOPERATING)
Letter of credit 5.50 CRISIL D (ISSUER NOT
& Bank Guarantee COOPERATING)
Proposed Cash 26.25 CRISIL D (ISSUER NOT
Credit Limit COOPERATING)
Proposed Letter of 20.00 CRISIL D (ISSUER NOT
Credit & Bank COOPERATING)
Guarantee
CRISIL has been consistently following up with Leeway for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Leeway, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on Leeway is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of Leeway continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Leeway, established in March 2010, and headquartered in Mumbai, is
an integrated logistics solutions provider of end-to-end supply
chain solutions. The company also offers people-movement solutions
to corporate entities. Operations are managed by a professional
management team, headed by Mr Sanjay Sinha, its promoter and
managing director.
MALLEMAALA AGRO: CRISIL Maintains 'B' Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Mallemaala Agro
Private Limited (MAPL) continues to be 'CRISIL B/Stable Issuer not
cooperating'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.75 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Long Term Loan 25.00 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term .25 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with MAPL for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MAPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MAPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of MAPL continues to be 'CRISIL B/Stable Issuer not
cooperating'
MAPL, incorporated in 2013, produces commercial eggs. Based in
Hyderabad, the company commenced operations in January 2015. It is
promoted by Mr M Shyam Prasad Reddy and his family.
MARKS ENTERPRISES: CRISIL Maintains D Rating in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Marks Enterprises
Private Limited (MEPL) continues to be 'CRISIL D/CRISIL D Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL D (ISSUER NOT
COOPERATING)
Letter of Credit 7.75 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with MEPL for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MEPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MEPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of MEPL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
MEPL, incorporated in 2011 and promoted by Mr Somnath Harjai,
trades in yarn and metal (such as aluminium scrap, ingots, and
billets).
MATHURA AGRO: CRISIL Maintains 'B-' Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Mathura Agro
Industries (MAI) continues to be 'CRISIL B-/Stable Issuer not
cooperating'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 18 CRISIL B-/Stable (ISSUER NOT
COOPERATING)
Long Term Loan 7 CRISIL B-/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term 5 CRISIL B-/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with MAI for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MAI, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MAI is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of MAI continues to be 'CRISIL B-/Stable Issuer not
cooperating'
MAI was incorporated by Mr Venugopal Karwa and his wife, Mrs N V
Karwa in 2008. The firm processes products such as toor dal and
chana dal, and has its processing facility at Solapur, with
capacity of 125 and 150 tonnes per day for toor dal and chana dal,
respectively.
MODERN INDIA: CRISIL Retains D Rating in Not Cooperating Category
-----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Modern India Con-Cast
Limited (Modern; part of the Modern India group) continues to be
'CRISIL D/CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10.42 CRISIL D (ISSUER NOT
COOPERATING)
Funded Interest 35.33 CRISIL D (ISSUER NOT
Term Loan COOPERATING)
Letter of Credit 141.36 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 12.07 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 28.24 CRISIL D (ISSUER NOT
COOPERATING)
Working Capital 79.58 CRISIL D (ISSUER NOT
Term Loan COOPERATING)
CRISIL has been consistently following up with Modern for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Modern, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on Modern is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of Modern continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of Modern and Gayson and Co Pvt Ltd
(Gayson). This is because the two companies, together referred to
as the Modern India group, have strong operational and financial
linkages in terms of intragroup sales and financial support from
Gayson to Modern.
The Modern India group was set up by Mr. Bhupinder Singh Saini and
Mr. Bakhshish Singh Dhanjal. Modern, incorporated in 1987,
manufactures ferroalloys, mostly silico-manganese and
ferromanganese. Gayson, incorporated in 1963 and acquired by the
group in 1981, trades in ferroalloys and rolling-mill products.
NATWEST ESTATES: CRISIL Maintains B+ Rating in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Natwest Estates
Private Limited (NEPL) continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term 13.54 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with NEPL for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of NEPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on NEPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of NEPL continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
Set up in 1995 by Mr A R Sudhakar and his brother-in-law, Mr T V
Rama Kumar, Chennai-based NEPL undertakes residential and
commercial real estate projects. The company has completed more
than 6 lakh square feet of construction in the past. Currently, the
company has one ongoing project, Natwest Vivas, situated on GST
Road, Chennai.
NAVEEN TIMBER: CRISIL Maintains 'D' Rating in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Naveen Timber Private
Limited (NTPL) continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL D (ISSUER NOT
COOPERATING)
Import Letter 18 CRISIL D (ISSUER NOT
of Credit Limit COOPERATING)
Standby Line 31 CRISIL D (ISSUER NOT
of Credit COOPERATING)
CRISIL has been consistently following up with NTPL for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of NTPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on NTPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of NTPL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
NTPL, incorporated in 2007 by promoters, Mr Parveen Goyal and Mr
Vishal Goyal, is engaged in trading and sawing of imported timber.
OHM PIPES: CRISIL Maintains 'B' Ratings in Not Cooperating
----------------------------------------------------------
CRISIL said the ratings on bank facilities of OHM Pipes Private
Limited (OHM) continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Letter of Credit 2 CRISIL A4 (ISSUER NOT
COOPERATING)
Long Term Loan 3.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Proposed Fund- 5.26 CRISIL B/Stable (ISSUER NOT
Based Bank Limits COOPERATING)
CRISIL has been consistently following up with OHM for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of OHM, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on OHM is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of OHM continues to be 'CRISIL B/Stable/CRISIL A4 Issuer
not cooperating'.
OHM, incorporated in July 2009, is based in Balasore, Odisha. The
company manufactures PVC and high-density polyethylene pipes.
ORBICULAR PHARMA: CRISIL Maintains B+ Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Orbicular
Pharmaceutical Technologies Private Limited (Orbicular) continues
to be 'CRISIL B+/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL B+/Stable (ISSUER
NOT COOPERATING)
Term Loan 10 CRISIL B+/Stable (ISSUER
NOT COOPERATING)
CRISIL has been consistently following up with Orbicular for
obtaining information through letters and emails dated August 31,
2018 and February 14, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Orbicular, which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes information available on Orbicular
is consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of Orbicular continues to be 'CRISIL B+/Stable Issuer
not cooperating'.
Established in July 2010 and based in Hyderabad (Telangana),
Orbicular is a privately held pharmaceutical company focused on
pharmaceutical product development in the drug development process.
It is promoted by Mr. M.S. Mohan and Mr. Hiren Patel.
PARAGON KNITS: CRISIL Lowers Rating on INR25.86cr Loan to D
-----------------------------------------------------------
CRISIL has downgraded its ratings on the bank facility of Paragon
Knits Limited (PKL) to 'CRISIL D/CRISIL D' from 'CRISIL
B+/Stable/CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Letter of credit 2 CRISIL D (Downgraded from
& Bank Guarantee 'CRISIL A4')
Proposed Long Term 0.14 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL B+/Stable')
Term Loan 25.86 CRISIL D (Downgraded from
'CRISIL B+/Stable')
The downgrade reflects recent instances of delay in interest
payments due on term loan. The last installment due on 28 February
2019, has not been paid yet.
The rating reflects PKL's modest financial risk profile and working
capital intensive operations. These weaknesses are partially offset
by extensive promoter experience.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest financial risk profile: Financial risk profile is
constrained by modest debt protection metrics with interest
coverage ratio of 1.7 times and net cash accrual to adjusted debt
ratio of 0.08 times in fiscal 2018. Further, leverage was
moderately high with total outside liabilities to adjusted networth
ratio of over 3.5 times, over the three fiscals ended March 31,
2018.
* Working capital intensive operations: Gross current assets stood
at 122 days as on March 31, 2018, mainly led by moderate inventory
of 47 days and debtors of 61 days as on March 31, 2018.
Strength:
* Extensive promoter experience: The two decade-long experience of
the promoter in the readymade knitted garments industry have helped
them establish relationships with customers and suppliers, which
will continue to support the business risk profile.
Liquidity
Liquidity is weak as reflected in delays in servicing of interest
due on term loan. The interest payment due for February 2019 has
not been paid yet.
PKL was set up by Mr Roshan Baid in 2008, and began operations from
October 2014. The company knits and processes yarn into fabric, and
has a manufacturing unit at Una (Himachal Pradesh). It has a total
installed capacity of 12 tonnes/day.
RAHIL COLD: CARE Migrates B Rating to Not Cooperating Category
--------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Rahil
Cold Storage LLP (RCSL) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 3.25 CARE B; Issuer not co-operating;
Facilities Based on best available
Information
CARE had, vide its press release dated January 4, 2018 placed the
ratings of RCSL under the 'issuer non-cooperating' category as RCSL
had failed to provide information for monitoring of the rating as
agreed to in its Rating Agreement. RCSL continues to be
non-cooperative despite repeated requests for submission of
information through phone calls and emails dated February 7, 2019,
February 8, 2019, February 11, 2019, February 19, 2019, February
21, 2019 and numerous phone calls. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating. The rating on RCSL's bank
facilities will now be denoted as CARE B; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
At the time of last rating on January 4, 2018, the following were
the rating strengths and weaknesses:
Key Rating Weakness
Project implementation and stabilization risk: RCSL is implementing
green field project to provide cold storage facilities with
proposed installed capacity of 3,500 metric
tons per annum (MTPA). The project is at very nascent stage and
total capital cost is INR32.04 crore with project debt/equity ratio
of 2.55 times.
Fragmented nature of industry coupled with competitive nature of
business: The entity operates in the cold storage services industry
which is highly fragmented with presence of numerous
independent small-scale enterprises owing to low entry barriers
leading to high level of competition in the segment. Furthermore,
RCSL requires storing fruits and vegetables in the season itself
for future off-season sale which allow RCSL to keep the profit
margin moderately high. However, higher profit margin attracts new
players to enter in the industry and thereby competition is bound
to increase in future.
Key Rating Strengths
Experienced promoters in different industries albeit no relevant
experience in the storage service industry: RCSL is promoted by
Shukla family led by Mr Kaushikbhai Shukla and his son Mr Rahil
Shukla. Mr. Kaushikbhai Shukla, also director at Rahil Builders
Private Limited, is actively involved in Agricultural activities.
Mr. Rahil Shukla will look after sales and other financial matters
at RCSL. Although, promoter possesses long experience in the other
industrial segments, they do not have any relevant experience in
cold storage facilities.
Location advantage: RCSL has a locational advantage as its
manufacturing facilities are strategically located near to the
entry point of Gujarat and Maharashtra. Also there is abundant
water availability from Narmada Canal and transportation is
available at negligible cost along with skilled and low cost labour
availability. There is also major plantation in the area of lemon,
Potato, Banana, Tomato, Carrots and Pomegranates which will be
collected directly from the farm.
Capital subsidy from the government and deduction under section
35AD of Income Tax Act, 1961: RCSL is eligible for capital subsidy
under National Horticulture Board (NHB) under the scheme name
'Capital Investment Subsidy for Construction / Modernization /
Expansion of Cold Storage and Storages for Horticulture Produce'.
Many activities of cold storage are included in the exempted and
the negative list for the purpose of service tax. RCSL is also
eligible for deduction of 150% of capital expenditure incurred to
set up cold storage facility under section 35AD of Income
Tax Act, 1961.
Rahil Cold Storage LLP (RCSL) was incorporated in July 2013 by Mr.
Kaushikbhai Shukla and Mr. Rahilbhai Shukla. RCSL was incorporated
with main objective to preserve fruits and food for longer duration
at its cold storage facilities, Bagodra with total installed
capacity of 3,500 metric tonne per annum (MTPA).
SADHU SINGH: CRISIL Maintains 'B+' Rating in Not Cooperating
------------------------------------------------------------
CRISIL said the ratings on bank facilities of Sadhu Singh Gurdip
Singh (SSGS; part of Mahant group) continues to be 'CRISIL
B+/Stable/CRISIL A4 Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Packing Credit 2 CRISIL A4 (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SSGS for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SSGS, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SSGS is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of SSGS continues to be 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
For arriving at the ratings, CRISIL has now combined the business
and financial risk profiles of SSGS and Mahant Overseas ('CRISIL
B+/Stable/CRISIL A4'). This is because the two companies, together
referred as the Mahant group, have a common management, are engaged
in similar businesses, and have strong business linkages. The
analytical approach has been modified, following the management's
efforts to increase synergies between these two firms.
The Mahant group mills, processes, and sells basmati rice in the
domestic and overseas markets under the Sadhu brand. The group
comprises two firms, Sadhu Singh Gurdip Singh and Mahant overseas,
set up in 1955 and 1999, respectively by Khajinder Singh and his
family members, as partnership firms.
SAP HOLDINGS: CRISIL Assigns B- Rating to INR7.5cr Cash Loan
------------------------------------------------------------
CRISIL has assigned 'CRISIL B-/Stable' rating to the bank
facilities of Sap Holdings and Leasing Private Limited (SAP).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7.5 CRISIL B-/Stable (Assigned)
The rating reflects Sap's exposure to intense competition in the
automobile dealership industry and below-average financial risk
profile. These weaknesses are partially offset by extensive
industry experience of Sap's promoters and established position in
automobile dealership market in Navi Mumbai.
Key Rating Drivers & Detailed Description
Weakness:
* Below average financial risk profile, marked by modest net worth,
high external indebtedness, subdued debt protection metrics, and
financial support extended to group entities: Sap has a below
average financial risk profile reflected by a modest networth of
around INR15 crore, high TOL/TNW of 3.84 times and modest interest
coverage of 0.92 time as on March 2018. Further Sap has extended
loan and advances to group companies amounting to around INR25
crore.
* Susceptibility to intense competition in auto-dealership
industry: The automotive sector is intensely competitive with a
large number of players in the mini, compact, mid-size, executive,
premium, and luxury passenger car segments. The company faces
intense competition from the unorganised used car market and from
dealers of other leading and established players in the segment
such as Tata Motors Ltd, Maruti Suzuki India Ltd and Ford India Pvt
Ltd. Furthermore, the OEMs encourage more dealerships to improve
penetration and sales thereby increasing the competition among
dealers. This has created the need for differentiation, and hence,
auto dealers have to refurbish their dealership outfits and service
centres on a regular basis. CRISIL believes that SAP's business
risk profile will remain constrained owing to its susceptibility to
intense competition in the automobile dealership industry.
Strengths:
* Extensive industry experience of Sap's promoters and established
position in automobile dealership market in Navi Mumbai: Sap
benefits from the promoter's extensive experience in the automobile
dealership business. The promoters have been in the auto dealership
business for a long time.
Liquidity
Sap has stretched liquidity as reflected in its net cash accruals
of 1.75 crore in fiscal 2018. The company's bank limits have been
high at around 96 percent over the twelve months ended December
2018 on account of its working-capital-intensive nature of
operations. Anticipated cash accrual of INR4.81-7.75 crore, against
expected debt obligation of INR2.77-4.43 crore over the medium
term.
Outlook: Stable
CRISIL believes that SAP will continue to benefit over the medium
term from its extensive experience of the promoter and established
position in automobile dealership market in Navi Mumbai. The
outlook may be revised to 'Positive' if Sap's capital structure
improves significantly, most likely due to equity infusion by
promoters, or due to significant increase in cash flows from
operations. Conversely, the outlook may be revised to 'Negative' if
Sap's cash accruals decline significantly, or if the company avails
larger than expected debt, significantly impacting its debt
servicing ability.
SAP is a dealer of Hyundai Motors India Ltd, located in Vashi (Navi
Mumbai). SAP Holding & Leasing Pvt. Ltd was incorporated in 1994.
The company is promoted by Mr. Shrinivas Pawar, and his wife, Mrs
Sharmila Pawar.
SELGA STEEL: CARE Reaffirms B+ Rating on INR8cr LT Loan
-------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Selga Steel Industries Private Limited (SSIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 8.00 CARE B+; Stable Reaffirmed and
Facilities Removed from Issuer Not
Cooperating
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of SSIPL continues to be
constrained by Small scale of operations with fluctuating income
and cash accruals, leveraged Capital Structure and weak
Debt-Protection metrics and working capital intensive nature of
operations.
The rating also factors in improvement in improvement in Total
operating income and profitability margins during FY18 (refers to
period April 1 to March 31).
However, the rating derives comfort from Long track record of the
entity with experienced promoters, and long term relationship with
reputed clientele base along with moderate order book position
Going forward, the ability of the company to increase its scale of
operations, improve and maintain its profit margins, improve its
capital structure and debt protection metrics and efficiently
manage its working capital requirements will be the key rating
sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Small scale of operations with fluctuating income and cash
accruals: The company has a track record of more than two decade,
however the total operating income (TOI), of the company remained
low at INR16.81 crore in FY18 with low net worth base of INR2.96
crore as on March 31, 2018 as compared to other peers in the
industry. However, the total operating income of the company
improved by 5.47% and stood at INR16.81 crore in FY18 as compared
to INR15.94 crore in FY17. Further, the gross cash accruals remains
fluctuating, however improved from previous year and stood at INR
0.31 Crores, as on March 31, 2018.
Leveraged Capital Structure and weak Debt-Protection metrics: The
capital structure of the company stood leveraged in FY18 marked by
the Overall gearing ratio at 2.31x as of March 31, 2017 to 2.82x as
of March 31, 2018 on back of moderate utilization of working
capital limits throughout the year along with accretion of profits
to the networth of the company. The debt coverage indicators also
stood weak marked by TD/GCA of 26.54x in FY18 as compared to 22.54x
in FY17 on back of maximum utilization of working capital facility.
The interest coverage ratio also deteriorated from 2.06x in FY17 to
1.59x in FY18 due to increase in interest cost.
Working capital intensive nature of operations: The nature of
operations of SSIPL continues to be working capital intensive on
account of elongated working capital cycle in FY18 at 107 days from
90 days in FY17. This is because of increased collection period
from 108 days to 126 days in FY18, in line with more orders
executed in the last quarter of the year. The working capital cycle
of the company is managed by a cash credit limit of INR8.00 crore,
which was utilized at 70% during the last 12 months ended January
2019.
Key Rating Strengths
Long track record of the entity with experienced promoters: SSIPL
is promoted by Mr. G. Gajendiran and his wife Mrs. G. Elayaselvi.
The key promoter has done diploma in Mechanical Engineering and has
an experience of more than two decades in the industry. Prior to
incorporating SSIPL, Mr. G. Gajendiran was associated with Steel
Authority of India Limited for around 20 years and worked as a
Senior Technician with the company.
Being in the industry for so long has helped the promoters gaining
adequate acumen about the industry which aids in smooth operations.
The various divisions of the company are headed by experienced
employees who have been associated with the company since more than
two decades.
Long term relationship with reputed clientele base along with
moderate order book position: The company has been associated with
reputed clients like Tata Steel Limited (CARE AA), Jindal Steel &
Power Limited (CARE BBB- /A3, Feb 2019), Tata Projects Limited and
Steel Authority of India (CARE AA/CARE A1+) etc. The company has
been dealing with these clients since more than 10 years now and
gets repetitive orders from the same. Based on the long term
relationship, SSIPL has in hand orders to the tune of INR 11 crore
from these companies to be executed in the time frame of 4-5
months.
Improvement in Total operating income and profitability margins:
The total operating income of the company improved by 5.47% and
stood at INR16.81 crore in FY18 as compared to INR15.94 crore in
FY17. The company has boosted up its revenue by fabrication sales
business since FY17, and has shown significant improvement in FY18,
resulted in the revenue improvement. In 10MFY19 (Prov.), SSIPL
achieved turnover of INR11.00 crore and has order book position of
INR15.00 Crores, includes both sales and services, where 50% of
orders are expected to be executed by March 2019.
Further, PBILDT and PAT margins is in the fluctuating trend,
however improved in FY18 by 530bps and 322 bps respectively. Though
the major operations of the company involve erection services,
where the margin will be uncertain, the increase in fabrication
sales has also supported the improvement of the PBILDT margin.
Despite increased interest costs associated with utilization of
working capital facility and the term loan, the PAT margin also has
improved with increase in the absolute value of PBILDT.
Liquidity Analysis
The company's total cash and bank balance stood at INR 3.04 crore
as on March 31, 2018. The current ratio stood moderately weak at
1.25x as of March 31, 2018 as against 1.30x as of March 31, 2017.
The company's unutilized portion of working capital stood at around
25% (approx.) amounting to Rs 2.00 crore during last 12 months
ended January 2019.
Selga Steel Industries Private Limited (SSIPL) was incorporated in
the year 1997 by Mr. G. Gajendiran along with his wife Mrs. G.
Elayaselvi in Salem, Tamil Nadu. The company is into Turnkey
engineering services like fabrication, erection & commissioning of
steel structures and piping work for steel plants, cement plants,
power plants, sponge iron plant and LPG plants. The major customers
of the company are Tata Steel Limited, Jindal Steel & Power
Limited, Tata Projects Limited and Steel Authority of India Limited
naming a few. The work orders are received on contract and tender
basis from these companies.
SURAJ VALUE: CARE Lowers Rating on INR10.61cr Loan to D
-------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Suraj Value Infrastructure Private Limited (SVPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 10.61 CARE D; Issuer not cooperating;
Facilities Revised from CARE B+; Stable
on the basis of best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from SVPL to monitor the rating
vide email communications/letters dated January 8, 2019, January
11, 2019, January 19, 2019 and February 25, 2019 and numerous phone
calls. However, despite CARE's repeated requests, the company has
not provided the requisite information for monitoring the rating.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. The rating on SVPL's bank facility will now be denoted as
CARE D, ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The revision in the rating assigned to the bank facilities of SVPL
factors in the ongoing delays in servicing of debt obligations.
Detailed description of the key rating drivers
Key Rating Weaknesses
Delay in debt servicing obligations: As per banker interaction
there are ongoing delays in repayment of term loan. The
same was on account weak liquidity position.
SVPL is a part of the Nanded-based (Maharashtra) Suraj group. The
company was previously known as 'Suraj Tubes India Private Limited'
and later on April 23, 2015, was renamed as 'Suraj Value
Infrastructures Private Limited'. The group has presence in various
business segments such as steel trading, manufacturing and trading
of fertilizers and polymers, etc.
THIRUVANANTHPURAM ROAD: CARE Lowers Rating on INR42.02cr Loan to D
------------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Thiruvananthpuram Road Development Company Limited (TRDCL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 42.02 CARE D; Issuer not cooperating;
Facilities Revised from CARE BB; Negative
on the basis of best available
information
Detailed Rationale & Key Rating Drivers
The revision in the rating assigned to TRDCL factors in the delay
in debt servicing on its term loan repayment obligation. As
confirmed by the bank, interest payment had remained overdue, the
bank has also confirmed that despite having money in escrow
account, TRDCL was unable to utilize the money for repayment owing
to the NCLAT order.
CARE has been seeking information from TRDCL to monitor the rating
vide e-mail communications dated September 30, 2018, October 31,
2018, November 30, 2018, December 31, 2018, January 31, 2019 with
subsequent reminder mails thereupon and numerous phone calls.
However, despite CARE's repeated requests, company has not provided
the requisite information for monitoring the ratings. In line with
the extant SEBI guidelines, CARE has reviewed the rating on the
basis of the best available information. The rating on TRDCL's bank
facilities will now be denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
Key Rating Weaknesses
Delay in debt-servicing obligations: Banker has confirmed that
interest payment has remained overdue for obligation due in recent
past. Bank has also confirmed that despite having money in escrow
account they were unable to utilize the money for repayment owing
to the NCLAT order. Further, CARE has also not received NDS for the
past more than 3 months.
Thiruvananthpuram Road Development Company Limited (TRDCL) is an
SPV formed and equally owned by IL&FS Transportation Networks
Limited (ITNL, rated CARE D) and Punj Lloyd Limited (PLL, rated
CARE D/CARE D). The company was incorporated on March 1, 2004 to
design, finance, construct, operate and maintain the road network
of 42.07 km within the capital city of Thiruvananthpuram, Kerala.
ITNL–PLL consortium, which quoted the lowest annuity amount of
INR35.50 crore, was selected to develop the road network. Kerala
Road Fund Board is the annuity provider.
TIRUMALA DALL: CARE Lowers Rating on INR7cr LT Loan to D
--------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Tirumala Dall Udyog (TDU), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 7.00 CARE D Revised from CARE B+;
Facilities Stable; ISSUER NOT COOPERATING
In the absence of minimum information required for the purpose of
rating, CARE was unable to express an opinion on the ratings of TDU
and in line with the extant SEBI guidelines, CARE revised the
rating of bank facilities of the firm to 'CARE B+; ISSUER NOT
COOPERATING'. However, the firm has now submitted the requisite
information to CARE. CARE has carried out a full review of the
rating and the rating stands at 'CARE D'.
Detailed Rationale & Key Rating Drivers
The revision in the rating assigned to the bank facilities of TDU
factors in the ongoing delays in servicing of debt obligations.
Detailed description of the key rating drivers
Key Rating weakness
Delays in debt servicing obligations: As per banker interaction
there are continuous overdrawals in the cash credit facility
for more than 30 days. The same was on account of stretched
liquidity position due to higher inventory position.
TDU based out of Nagpur, Maharashtra is a proprietorship concern
promoted by Mrs Vijayalaxmi Bholla was established in March 2003.
The entity is engaged in the business of processing of pulses
(chana dal and daliya) with its processing facility located at
Nagpur, Maharashtra.
TRIVENI WIRES: CARE Lowers Rating on INR35.79cr LT Loan to D
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Triveni Wires Private Limited (TWPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 35.79 CARE D Revised from CARE B+;
Facilities Stable
Short-term Bank
Facilities 4.00 CARE D Revised from CARE A4
Detailed Rationale & Key Rating Drivers
The revision in the ratings assigned to the bank facilities of TWPL
factors in the ongoing delays in servicing of debt obligations.
Detailed description of the key rating drivers
Key Rating weakness
Delays in debt servicing obligations: As per banker interaction
there are ongoing delays in repayment of term loan and overdrawals
in the cash credit facility for more than 30 days. The same was on
account of stretched liquidity position.
Incorporated in the year 1981, TWPL is engaged in the manufacturing
of galvanized iron wires, barbed wires, and chain links amongst
others. The company is using patented Electro Plasma Technology
(EPT) to clean and coat metals which uses electricity and benign
electrolytes for cleaning thereby eliminating the need for strong
acids. The manufacturing facility of the company is located at
Butibori, Nagpur with an installed capacity to manufacture 36000
MTPA.
=========
J A P A N
=========
MITSUBISHI HEAVY: Court Orders Assets Seizure Over WWII Labor Case
------------------------------------------------------------------
Kyodo News reports that a South Korean court on March 25 approved a
request to seize Mitsubishi Heavy Industries Ltd.'s assets in South
Korea after the company refused to compensate Koreans who had won a
wartime labor case against it, a lawyer for the plaintiffs said.
According to Kyodo News, the decision by the district court in
Daejeon follows a South Korean Supreme Court ruling last year
ordering the major Japanese manufacturer to compensate for forced
labor during World War II.
Mitsubishi Heavy Industries is the second Japanese company to be
hit with such a move. In January, a South Korean court approved the
seizure of assets held by Nippon Steel & Sumitomo Metal Corp. to
compensate Koreans for conscripted labor during World War II, Kyodo
News recalls.
Sought for asset seizure in the Mitsubishi Heavy Industries case
were the rights to two trademarks and six patents owned by the
company in South Korea, according to the Nikkei.
The Daejeon District Court will send its decision to the Korean
Intellectual Property Office to get hold of patents owned by the
firm, the lawyer told Kyodo News, adding that there are only a few
small steps left for the property office to take before the seizure
takes effect.
The court approval was expected to be officially announced later on
March 25, Kyodo News notes.
Kyodo News says rulings in South Korean courts against Japanese
firms over wartime labor and subsequent legal moves such as the
asset seizures have soured already tense ties between Japan and
South Korea.
Kyodo News relates that the latest legal development is likely to
draw criticism from the Japanese government, which maintains that
the issue of claims stemming from Japan's 1910-1945 colonial rule
of the Korean Peninsula has already been settled as part of a 1965
treaty that established diplomatic ties with South Korea.
In its Nov. 29 ruling, the top court ordered Mitsubishi Heavy
Industries to pay damages to groups of Koreans after finding that
the right of victims of forced labor to seek compensation was not
annulled by an accord that was signed alongside the 1965 treaty,
Kyodo News reports.
After months in which the company continued rejecting compensation
talks, the plaintiffs' lawyers on March 7 filed a request with the
Seoul Central District Court to seize the rights to two trademarks
and six patents owned by the company in South Korea, according to
Kyodo News.
In mid-March, senior Foreign Ministry officials from both countries
also held talks in Seoul to bridge their differences over the
issue, but the meeting ended without yielding any progress, the
report says.
Mitsubishi Heavy Industries, Ltd. --
http://www.mhi.co.jp/indexe.html-- was founded by Yataro Iwasaki
in 1884 as a shipbuilding firm called Nagasaki Shipyard & Machinery
Works, which was later named Mitsubishi Shipbuilding Co. Ltd., and
then again launched as Mitsubishi Heavy Industries, Ltd. in 1934 as
a private firm that manufactured ships, heavy machinery, airplanes
and railroad cars.
In 1950, Mitsubishi Heavy was divided into three separate entities
on a law aimed toward dissolving Nagasaki Shipyard & Machinery
Works and thus dismantling the overconcentration of economic power.
It was later consolidated in 1964 and repborn as Mitsubishi Heavy
Industries, Ltd.
=====================
N E W Z E A L A N D
=====================
MAINZEAL PROPERTY: Richard Yan Appeals NZ$36 Million Liability
--------------------------------------------------------------
Nikki Mandow at BusinessDesk reports that Richard Yan, director of
failed construction company Mainzeal Group, has appealed the High
Court judgment which found him liable to pay up to NZ$36 million to
creditors.
Today, March 26, is the deadline for any appeals in the case,
following Justice Francis Cooke's ruling released on Feb. 26,
BusinessDesk says. It's not yet clear whether the three other
directors, including former Prime Minister Jenny Shipley, plan to
appeal.
BusinessDesk relates that liquidator BDO, appointed after Mainzeal
collapsed in early 2013, could also choose to appeal on the grounds
that the sum awarded to creditors is only a third of the
approximately NZ$110 million they are owed. However, given Mr.
Yan's appeal, BDO now also has the option to cross-appeal within 10
working days.
Mainzeal chair Shipley and directors Peter Gomm and Clive Tilby
were found liable for up to NZ$6 million each, with Yan potentially
liable for the full amount, NZ$36 million, the report says.
According to BusinessDesk, Justice Cooke ruled that the three
directors were reckless, "had adopted a policy of trading while
insolvent", and "used money owed to trade operators, particularly
sub-contractors, as working capital."
The directors also relied on assurances from Mainzeal's China-based
parent, Richina Pacific, headed by Mr. Yan, that the millions of
dollars Mainzeal had lent Richina would be paid back if Mainzeal
got into trouble, BusinessDesk relates.
"The assurances relied upon were ambiguous, conditional, and
subject to the constraints of Chinese law, which restricted the
ability to return money to New Zealand from China," Justice Cooke
said in the judgment, adds BusinessDesk.
About Mainzeal Property
Mainzeal Property and Construction Ltd is a New Zealand-based
property and construction company. The company forms part of the
Mainzeal Group, which is owned by Richina Inc, a privately held New
Zealand-based company with a strong China focus.
On Feb. 6, 2013, Colin McCloy and David Bridgman, partners from
PricewaterhouseCoopers, were appointed receivers to Mainzeal
Property and Construction Limited and associated entities as a
result of a request made by its director to BNZ.
Mainzeal's director, Richard Yan advised that following a series of
events that had adversely affected the Company's financial position
coupled with a general decline in major commercial construction
activity, and in the absence of further shareholder support, the
Company could no longer continue trading.
On Feb. 28, 2013, BDO's Andrew Bethell and Brian Mayo-Smith were
appointed liquidators to those three companies in receivership and
nine others in the group that were not in receivership.
The companies now under the control of the liquidators are Mainzeal
Group, Mainzeal Property and Construction, Mainzeal Living, 200
Vic, Building Futures Group Holding, Building Futures Group,
Mainzeal Residential, Mainzeal Construction, Mainzeal, Mainzeal
Construction SI, MPC NZ and RGRE.
Mainzeal is estimated to owe NZ$11.3 million to the BNZ, NZ$70
million to unsecured creditors and NZ$5.2 million to employees, NZN
disclosed. Subcontractors are among the unsecured creditors, said
NZN.
=================
S I N G A P O R E
=================
HYFLUX LTD: Urged to Chase Salim-Medco for Updates on Rescue Deal
-----------------------------------------------------------------
Marissa Lee at The Business Times reports that first came a default
notice from the national water agency, followed by an announcement
that Hyflux's scheduled townhall meetings with retail investors
would be postponed indefinitely.
Then, potential white knight Salim-Medco asserted its right to back
out of a crucial rescue deal for Hyflux last week.
Since then, both sides have gone silent about what would happen
next, the report relays.
That's thrown the fate of Hyflux into uncertainty, and retail
investors want to know what Salim-Medco is planning, the Securities
Investors Association (Singapore) or Sias said on
March 25, BT reports.
BT relates that Sias chief David Gerald wrote in an open letter to
Hyflux: "Can the board advise that Salim-Medco's proposal is still
on the table and that they have not given any reason to withdraw
from the agreement?"
He added: "The recent PUB statement that they should not use its
default notice as a reason to walk out is causing worry to retail
investors. There is no other option on the table. The company is
not giving confidence to investors that it will resolve all
outstanding issues to keep the restructuring deal with Salim-Medco
on track."
Mr. Gerald told The Business Times (BT) that Sias has received
hundreds of calls from small investors who are anxious and
confused: "There is much confusion about whether Salim-Medco is in
or not. Tell us, is Salim-Medco in or not?"
He noted that as of now, Hyflux has not said that the scheduled
scheme meeting on April 5 is cancelled. But Hyflux must apply to
the Singapore High Court first if it wants to delay the vote, BT
relates.
Neither has Hyflux issued a revised scheme document to incorporate
amendments it agreed to make on March 8 that would allow retail
perpetual and preference shareholders to share in more upside in
the proposed restructuring.
With a week to go before April 5, there is no certainty that
Salim-Medco's SGD530 million rescue plan proposed last year is
still on the table, and no clarity over what will happen to
investors if the deal is dead.
Mr. Gerald wrote in the letter: "Could the board address all the
above concerns immediately, please?"
A lawyer for Salim-Medco said he was not allowed to talk about the
deal when phoned by BT on March 25.
About Hyflux
Singapore-based Hyflux Ltd -- https://www.hyflux.com/ -- provides
various solutions in water and energy areas worldwide. The company
operates through two segments, Municipal and Industrial. The
Municipal segment supplies a range of infrastructure solutions,
including water, power, and waste-to-energy to municipalities and
governments. The Industrial segment supplies infrastructure
solutions for water to industrial customers.
As reported in the Troubled Company Reporter-Asia Pacific on May
24, 2018, Hyflux Ltd. said that the Company and five of its
subsidiaries, namely Hydrochem (S) Pte Ltd, Hyflux Engineering Pte
Ltd, Hyflux Membrane Manufacturing (S) Pte. Ltd., Hyflux Innovation
Centre Pte. Ltd. and Tuaspring Pte. Ltd. have applied to the High
Court of the Republic of Singapore pursuant to Section 211B(1) of
the Singapore Companies Act to commence a court supervised process
to reorganize their liabilities and businesses. The Company said
it is taking this step in order to protect the value of its
businesses while it reorganises its liabilities.
The Company has engaged WongPartnership LLP as legal advisors and
Ernst & Young Solutions LLP as financial advisors in this process.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2019. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***