/raid1/www/Hosts/bankrupt/TCRAP_Public/190522.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

          Wednesday, May 22, 2019, Vol. 22, No. 102

                           Headlines



A U S T R A L I A

ANTAEUS DEVELOPMENT: Second Creditors' Meeting Set for May 29
APM BUSINESS: Second Creditors' Meeting Set for May 28
CHG SERVICES: Second Creditors' Meeting Set for May 28
HH PORTSIDE: Second Creditors' Meeting Set for May 29
LIBERTY FUNDING 2019-2: Moody's Rates Class F Notes (P)B2 (sf)

MANATONI PTY: Second Creditors' Meeting Set for May 28
P.C.A TRADING: Second Creditors' Meeting Set for May 27
SAMPLE BREW: Expressions of Interest Open Until May 24
SFG EMPLOYMENT: Second Creditors' Meeting Set for May 29
VAJALE PTY: Second Creditors' Meeting Set for May 28



C H I N A

CHINA LOGISTICS: Fitch Lowers Long Term FC IDR to B-, Outlook Neg.
GUORUI PROPERTIES: S&P Withdraws 'CCC+' Issuer Credit Rating
HYDOO INTERNATIONAL: Moody's Withdraws B3 CFR and Negative Outlook
KAISA GROUP: Fitch Assigns 'B' Rating to $1.15BB Senior Notes
KAISA GROUP: Moody's Rates USD400MM & USD350MM Senior Notes 'B2'

KANGMEI PHARMA: Regulator Confirms Company Faked Financial Data
REDCO PROPERTIES: S&P Affirms 'B' Long-Term ICR, Outlook Stable
TUNGHSU GROUP: Fitch Withdraws B- LT FC Issuer Default Rating


H O N G   K O N G

WTT HK LIMITED: Moody's Upgrades CFR to Ba3 on Merger With HKBN


I N D I A

ARISTO INDUSTRIES: ICRA Maintains B+/A4 Rating in Not Cooperating
ARJAY APPAREL: ICRA Withdraws B Rating on INR3.0cr Loan
AXISON VITRIFIED: ICRA Migrates B+ Rating to Not Cooperating
B. R. SPONGE: ICRA Maintains B+ Rating in Not Cooperating
BHOLA BABA: Insolvency Resolution Process Case Summary

EAST END: ICRA Maintains 'B' Rating in Not Cooperating
ELECON: CARE Migrates B Rating to Not Cooperating Category
ESSAR STEEL: Reports INR4,229cr EBITDA During Insolvency Period
GARDEN SILK: CARE Migrates D Rating to Not Cooperating Category
GTN INDUSTRIES: ICRA Hikes Rating on INR50.70cr Loan to C

HARESH OVERSEAS: ICRA Hikes Rating on INR5.0cr Loan to B-
HARIOM COLD: CARE Assigns 'B+' Rating to INR4.80cr LT Loan
JAYPEE INFRATECH: NCLAT Annuls Lenders' Voting on NBCC's Bid
KHULLAR HOSPITALITY: Insolvency Resolution Process Case Summary
RAITANI ENGINEERING: ICRA Maintains B+ Rating in Not Cooperating

RAJU CONSTRUCTION: Insolvency Resolution Process Case Summary
RANCHI EXPRESSWAY: ICRA Migrates D Rating to Not Cooperating
SHREE AMBICA: ICRA Withdraws B+ Rating on INR4.25cr Loan
SUPREME OVERSEAS: ICRA Withdraws C+ Rating on INR20cr Loan
SURA LEATHERS: ICRA Withdraws D Rating on INR8.50cr Loan



N E W   Z E A L A N D

FIBER FRESH: Animal Feed Company Goes Into Receivership


S I N G A P O R E

JAPFA COMFEED: Fitch Affirms BB- LT IDR, Outlook Stable
YUUZOONOW! PTE: Staff File Claims For Unpaid Salaries
[*] SINGAPORE: UK Court Recognizes Law for Debt Restructuring


S O U T H   K O R E A

HANJIN HEAVY: Shares Resume Trading After Financial Restructuring

                           - - - - -


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A U S T R A L I A
=================

ANTAEUS DEVELOPMENT: Second Creditors' Meeting Set for May 29
-------------------------------------------------------------
A second meeting of creditors in the proceedings of Antaeus
Development Pty Ltd has been set for May 29, 2019, at 12:45 p.m. at
Level 27, 101 Collins 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 May 28, 2019, at 5:00 p.m.

Travis Pullen of B&T Advisory was appointed as administrator of
Antaeus Development on April 16, 2019.

APM BUSINESS: Second Creditors' Meeting Set for May 28
------------------------------------------------------
A second meeting of creditors in the proceedings of APM Business
Investments Pty Ltd, trading as Accomplished Estate Agents, has
been set for May 28, 2019, at 10:30 a.m. at the offices of Worrells
Solvency & Forensic Accountants, 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 May 27, 2019, at 5:00 p.m.

Matthew Jess & Con Kokkinos of Worrells Solvency & Forensic
Accountants were appointed as administrators of APM Business on
April 11, 2019.

CHG SERVICES: Second Creditors' Meeting Set for May 28
------------------------------------------------------
A second meeting of creditors in the proceedings of CHG Services
Pty Ltd has been set for May 28, 2019, at 11:00 a.m. at the offices
of Cor Cordis, at Level 29, 360 Collins 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 May 27, 2019, at 5:00 p.m.

Sam Kaso and Glenn Spooner of Cor Cordis were appointed as
administrators of CHG Services on April 18, 2019.

HH PORTSIDE: Second Creditors' Meeting Set for May 29
-----------------------------------------------------
A second meeting of creditors in the proceedings of HH Portside Pty
Ltd, formerly trading as Hello Harry Portside, has been set for May
29, 2019, at 10:30 a.m. at Level 8, 102 Adelaide 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 May 28, 2019, at 5:00 p.m.

Lee Andrew Crosthwaite of Worrells Solvency & Forensic Accountants
were appointed as administrators of HH Portside on April 11, 2019.

LIBERTY FUNDING 2019-2: Moody's Rates Class F Notes (P)B2 (sf)
--------------------------------------------------------------
Moody's Investors Service has assigned the following provisional
ratings to the notes to be issued by Liberty Funding Pty Ltd in
respect of Liberty Series 2019-2.

Issuer: Liberty Funding Pty Ltd in respect of Liberty Series
2019-2

  -- AUD100.0 million Class A1a Notes, Assigned (P)Aaa (sf)

  -- AUD250.0 million Class A1b Notes, Assigned (P)Aaa (sf)

  -- AUD101.0 million Class A2 Notes, Assigned (P)Aaa (sf)

  -- AUD17.5 million Class B Notes, Assigned (P)Aa2 (sf)

  -- AUD9.5 million Class C Notes, Assigned (P)A2 (sf)

  -- AUD7.0 million Class D Notes, Assigned (P)Baa2 (sf)

  -- AUD5.0 million Class E Notes, Assigned (P)Ba2 (sf)

  -- AUD2.0 million Class F Notes, Assigned (P)B2 (sf)

The AUD8.0 million Class G Notes are not rated by Moody's.

The transaction is a securitisation of a portfolio of Australian
residential mortgages. All mortgages were originated and are
serviced by Liberty Financial Pty Ltd (Liberty, unrated).

Liberty is an Australian non-bank lender. It started originating
non-conforming residential mortgages in 1997. It subsequently
expanded into prime residential mortgage origination, as well as,
among others, auto loans, small commercial mortgage loans and
personal loans.

Residential mortgages remain Liberty's predominant business. As of
December 2018, it had a portfolio of Australian mortgage assets
over AUD8.05 billion, of which 75% was securitised in public
transactions.

RATINGS RATIONALE

The provisional ratings take into account, among other factors,
evaluation of the underlying receivables, the evaluation of the
capital structure and credit enhancement provided to the notes, the
availability of excess spread over the life of the transaction, the
liquidity reserve in the amount of 2.00% of the notes balance, the
legal structure, and the credit strength and experience of Liberty
as Servicer.

Moody's MILAN credit enhancement (MILAN CE) for the collateral pool
is 9.8%, while the expected loss is 1.50%. MILAN CE represents the
loss we expect the portfolio to suffer in a severe recessionary
scenario, and does not take into account structural features of the
transaction. or lenders mortgage insurance (LMI) benefit. The
expected loss represents a stressed, through-the-cycle loss
relative to Australian historical data.

After lenders mortgage insurance (LMI) benefit, MILAN CE is 9.4%.

The key transactional features are as follows:

- Class A1a and Class A1b Notes benefit from 30.0% credit
enhancement (CE) and Class A2 Notes benefit from 9.8% credit
enhancement

- The Class A1a Notes will receive principal prior to any other
notes at all times, unless there is an event of default. Once Class
A1a Notes are paid off Class A1b to Class F notes receive
sequential principal payments. Upon satisfaction of all stepdown
conditions which include - the payment date falling on or after the
payment date in June 2021, absence of charge offs on any notes and
average arrears greater than or equal to 60 days (as calculated
over the prior three periods plus the current period) do not exceed
4% - Class A1b, Class A2, Class B, Class C, Class D, Class E, and
Class F Notes will receive a pro-rata share of principal payments
(subject to additional conditions). The Class G Notes do not step
down and will only receive principal payments once all other notes
have been repaid. The principal pay-down switches back to
sequential pay across all notes, once the aggregate loan amount
falls below 20.0% of the aggregate loan amount at closing, or on or
following the payment date in June 2023.

- A liquidity facility provided by the National Australia Bank
Limited (NAB, Aa3/P-1/Aa2(cr)/P-1(cr)), with a required limit equal
to 2.0% of the aggregate invested amount of the notes less the
redemption fund balance. The facility is subject to a floor of
AUD600,000.

- The guarantee fee reserve account, which is unfunded at closing
and will build up to a limit of 0.30% of the issued notional from
proceeds paid to Liberty Credit Enhancement Company Pty Ltd as
Guarantor, from the bottom of the interest waterfall prior to
interest paid to the Class G noteholders. The reserve account will
firstly be available to meet losses on the loans and charge-offs
against the notes. Secondly, it can be used to cover any liquidity
shortfalls that remain uncovered after drawing on the liquidity
facility and principal. Any reserve account balance used can be
reimbursed to its limit from future excess income.

The key pool features are as follows:

- The portfolio has a scheduled loan to value ratio of 71%, with a
relatively high proportion of loans with scheduled LTV above 80.0%
(18.3%) and above 90% (10.4%).

- 6.9% of the loans in the portfolio were extended on an alt doc
basis

- The portfolio contains 4.7% exposure with respect to borrowers
with prior credit impairment (default, judgment or bankruptcy).
Moody's assesses these borrowers as having a significantly higher
default probability.

- Investment and IO loans represent 27.7% and 11.4% of the pool,
respectively.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
March 2019.

Factors that would lead to an upgrade or downgrade of the ratings:

Levels of credit protection that are greater than necessary to
protect investors against current expectations of loss could lead
to an upgrade of the ratings. Moody's current expectations of loss
could be better than its original expectations because of fewer
defaults by underlying obligors or higher recoveries on defaulted
loans. The Australian job market and the housing market are primary
drivers of performance.

A factor that could lead to a downgrade of the notes is
worse-than-expected collateral performance. Other reasons for
performance worse than Moody's expects include poor servicing,
error on the part of transaction parties, a deterioration in credit
quality of transaction counterparties, fraud and lack of
transactional governance.


MANATONI PTY: Second Creditors' Meeting Set for May 28
------------------------------------------------------
A second meeting of creditors in the proceedings of Manatoni Pty
Ltd ATF Manatoni Unit Trust has been set for May 28, 2019, at 3:00
p.m. at the offices of Cor Cordis, at Level 29, 360 Collins 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 May 27, 2019, at 5:00 p.m.

Sam Kaso and Glenn Spooner of Cor Cordis were appointed as
administrators of Manatoni Pty on April 18, 2019.

P.C.A TRADING: Second Creditors' Meeting Set for May 27
-------------------------------------------------------
A second meeting of creditors in the proceedings of P.C.A Trading
Co Pty Ltd has been set for May 27, 2019, at 11:00 a.m. at the
offices of O'Brien Palmer, at Level 9, 66 Clarence Street, in
Sydney, NSW.

The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 24, 2019, at 4:00 p.m.

Daniel John Frisken of O'Brien Palmer was appointed as
administrator of P.C.A Trading on April 10, 2019.


SAMPLE BREW: Expressions of Interest Open Until May 24
------------------------------------------------------
Nick Buckley at Broadsheet reports that Melbourne-based brewery
Sample Brew handed over administration to insolvency firm Rodgers
Reidy on May 14.

Founded in 2014, the business is known for its core range featuring
a pale ale, gold ale, lager and 3/4 IPA, and has more than 500
stockists.

Annual revenue for the company is forecast at AUD2.6 million for
the financial year, but the business has approximately AUD300,000
in unsecured debts, which means that the loan is not secured with a
guarantor or collateral asset if the debtor is unable to repay it,
Broadsheet discloses. Founder and director Vedad Huric is the
largest unsecured creditor.

According to Broadsheet, several companies have expressed interest
in buying Sample, and Mr. Huric is also considering submitting a
binding agreement between creditors and the company (known as a
deed of company arrangement) to regain control.

Sample previously attempted to raise funds through equity
crowdfunding website Birchal in 2017, but the process was cancelled
before investment began, the report recalls.

Expressions of interest are open until May 24. The business will
continue to trade and is likely to be offered for sale as a going
concern, the report says.

Shane Justin Cremin of Rodgers Reidy was appointed as administrator
of Sample Brew Pty Ltd, trading as Sample Brew, on May 14, 2019.

SFG EMPLOYMENT: Second Creditors' Meeting Set for May 29
--------------------------------------------------------
A second meeting of creditors in the proceedings of SFG Employment
Services Pty Ltd has been set for May 29, 2019, at 11:00 a.m. at
the offices of Dye & Co. Pty Ltd, at 165 Camberwell Road, in
Hawthorn East.

The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 28, 2019, at 5:00 p.m.

Roger Darren Grant and Shane Leslie Deane of Dye & Co. Pty Ltd were
appointed as administrators of SFG Employment on May 8, 2019.

VAJALE PTY: Second Creditors' Meeting Set for May 28
----------------------------------------------------
A second meeting of creditors in the proceedings of Vajale Pty Ltd,
trading as Fraser Jewellers, has been set for May 28, 2019, at
10:00 a.m. at Parkroyal Parramatta, Ruse Room, Level 1, 30 Phillip
Street, in Parramatta, NSW.

The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 27, 2019, at 5:00 p.m.

Graeme Beattie of Worrells was appointed as administrator of Vajale
Pty on April 11, 2019.



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C H I N A
=========

CHINA LOGISTICS: Fitch Lowers Long Term FC IDR to B-, Outlook Neg.
------------------------------------------------------------------
Fitch says the long-term foreign currency issuer default rating of
China Logistics Asset Holdings has been lowered from 'B' to 'B-',
with a negative outlook. Fitch also downgraded the senior unsecured
rating of China's logistics assets from 'B' to 'B-' with a recovery
rating of 'RR4'.

The downgrade of this rating is mainly based on the fact that due
to the company's debt expansion strategy, the EBITDA interest
coverage ratio of China's logistics assets has improved slowly.
Fitch expects that the indicator will still be less than double in
2019. The negative outlook is due to the fact that China's
logistics asset management plan plans to accelerate the
implementation of the light asset strategy, and the implementation
of the strategy is short, so the company faces higher execution
risks. If China's logistics assets fail to shift to a more
sustainable capital structure, the company's interest coverage
ratio will continue to be less than doubled, which will trigger
Fitch's further negative rating action. The rating outlook also
reflects the refinancing risks that may arise from a large number
of overseas bonds that China's logistics assets will expire in 2019
and 2020. The company's rating is supported by its robust business
conditions, with a premium portfolio value of RMB 17 billion at the
end of 2018.

Key rating drivers are

weak in interest coverage ratio: With the increase in projects
completed and matured in 2016, the occupancy rate and profitability
of China's logistics assets have increased, and the interest
coverage ratio has also improved from 0.52 times in 2017 to 0.63
times in 2018. However, considering that the company's capital
expenditure budget is huge and the project full rent is slower than
expected, Fitch expects that the company's interest expense growth
rate will continue to exceed its recurring income improvement rate,
and its 2019 recurrent EBITDA interest coverage ratio remains Will
be less than 1 time. Fitch believes that the low interest guarantee
multiples and 'B' continue to be less than 1 time.

The light asset strategy continues to develop: Fitch believes that
China's logistics assets efforts to develop light asset business is
expected to reduce its interest burden, but the implementation of
its light asset strategy has not been verified. China's logistics
assets launched a light asset strategy by establishing funds with
financial institutions in 2018, including assisting the company to
monetize mature projects by injecting a minority stake into core
funds, or investing in development funds to accelerate the
expansion of new projects.  In addition, Chinese logistics assets
can also charge management fees for the fund. Successful asset
recovery will provide the company with some of the capital needed
for future capital expenditures, thereby improving the company's
interest coverage ratio to about one-fold by 2020.

Capital expenditures put pressure on liquidity: As of the end of
2018, China's logistics assets held about RMB 2 billion in cash
equivalents and unused credit lines of RMB 398 million, which was
insufficient to cover the company's short-term debt of RMB 2
billion and its 2019 A capital expenditure plan of approximately
RMB 2 billion for further expansion. Due to weak internal liquidity
generation capabilities, Chinese logistics assets will have to rely
on refinancing to obtain the required funds. However, Fitch
believes that the company has the ability to sell quality
investment properties and has the flexibility to reduce capital
expenditures, which will partially relieve its liquidity pressure.


Refinancing challenges: China's logistics assets have developed
refinancing plans (including the issuance of convertible bonds,
private placements and asset disposal) to cover 100 million US
dollars of private placement bonds due in the second half of 2019
and will arrive in 2020 The $404 million bond was refinanced -
these debts totaled about 3.4 billion yuan, accounting for 45% of
the company's total liabilities of 7.7 billion yuan at the end of
2018. At the end of 2018, the company's unplied quality investment
property value was 3.8 billion yuan, and these assets also helped
the company to obtain more bank financing.

Steady business conditions: From the perspective of customer
quality and geographical diversification of China's core first- and
second-tier cities, the asset quality of China's logistics assets
is good. At the end of 2018, about 40%-50% of the company's total
gross floor area was located in the Yangtze River Delta region with
strong economic vitality and large demand for logistics facilities.
The company's investment property portfolio has a stable asset
occupancy rate of over 90% (92% in 2018) and a retention rate of
over 80%. There are many reputables among the tenants of China's
logistics assets – online retailer Jingdong is its largest
customer. However, the company's customers are highly concentrated,
and the top 10 customers contribute more than 50% of their total
revenue.

Rating Derivation Summary

Despite the benefits of high-quality, high-end warehouses and
robust industry demand, the business status of China's logistics
assets is in line with the level corresponding to the 'B+'/'BB-'
rating range, and its rating is constrained by its financial
position. The company's recurring EBITDA interest coverage ratio
continued to be weak, at the end of 2018, only 0.63 times, which
means that the company relies on borrowing to obtain capital for
capital expenditures and operating cash flow. China's logistics
assets are exploring the implementation of a light asset business
model similar to the industry leader GLP Pte . Ltd. (BBB/positive),
but Fitch believes that the strategy has a high implementation
risk.

The recurring EBITDA interest coverage ratio of China's logistics
assets is lower than PT Kawasan Industri Jababeka Tbk (B/stable),
which continues to more than double its regular EBITDA by its PT
Perusahaan Listrik Negara with the Indonesian state-owned power
company (PT Perusahaan Listrik Negara) Persero) (BBB/stable) signed
a long-term power sale contract.

Key Ratings Assume

Fitch's key rating assumptions in this issuer rating study include:


- Between 2019 and 2021, as assets mature, the occupancy rate of
completed and stable assets gradually rises to 94% (92.4% in 2018)
, the effective annual rental growth rate is 3%;

- EBITDA margin improved to 58%-62% between 2019 and 2021.

- 2019 capital expenditures of 2.3 billion yuan, a year starting
in 2020 to 1.8 billion yuan;

- between 2019 to 2021, under the asset-light strategy, asset
disposal each year bring cash income of 1 billion yuan

GUORUI PROPERTIES: S&P Withdraws 'CCC+' Issuer Credit Rating
------------------------------------------------------------
S&P Global Ratings withdrew its ratings on Guorui Properties Ltd.
at the company's request. The issuer credit rating was 'CCC+' and
the outlook was negative at the time of the withdrawal. At the same
time, S&P withdrew its 'CCC' long-term issue rating on Guorui's
senior unsecured notes.

S&P said, "The rating and outlook prior to the withdrawal reflected
our view that Guorui faces liquidity risks owing to its
considerable near-term debt maturities and small cash balance. In
our view, Guorui's low ratio of cash to short-term debt provides a
very limited buffer to withstand changes in funding conditions or
slippage in refinancing. However, we believe the immediate
liquidity risks reduced after the company refinanced its two
offshore bonds maturing or puttable in March 2019."


HYDOO INTERNATIONAL: Moody's Withdraws B3 CFR and Negative Outlook
------------------------------------------------------------------
Moody's Investors Service has withdrawn Hydoo International Holding
Limited's B3 corporate family rating (CFR) and the negative
outlook.

RATINGS RATIONALE

Moody's has decided to withdraw the rating for its own business
reasons. Please refer to the Moody's Investors Service Policy for
Withdrawal of Credit Ratings, available on its website,
www.moodys.com.

Hydoo International Holding Limited is a Chinese property developer
that specializes in developing and operating trade centers in
low-tier cities.


KAISA GROUP: Fitch Assigns 'B' Rating to $1.15BB Senior Notes
-------------------------------------------------------------
Fitch Ratings has assigned China-based homebuilder Kaisa Group
Holdings Limited's (B/Stable) USD1.15 billion 8.5% senior notes due
2022 a rating of 'B', with a Recovery Rating of 'RR4'.

The notes are rated at the same level as Kaisa's senior unsecured
rating as they constitute its direct and senior unsecured
obligations.

Kaisa's ratings are underpinned by its strong asset base that
supports its scale expansion, which is at a level comparable with
'BB' category homebuilders. The company had a large and
well-located land bank consisting of over 150 projects in 45 cities
across five major economic regions at end-2018. Its geographical
diversification mitigates project and region-related risks and
gives it more flexibility when launching new projects to support
its sales growth. Kaisa's ratings are constrained by its high
leverage--measured by net debt/adjusted inventory (urban renewal
projects (URPs) and investment properties at original cost)--of
72.7% at end-2018, though this is partly mitigated by its high
profitability.

Fitch believes Kaisa will start deleveraging from 2020, supported
by its enlarged scale and increasing margins with more high-margin
URPs being recognized. Kaisa is able to secure a large land bank at
low cost in China's Greater Bay Area through its URP business and
this supports the company's overall high EBITDA margin of over 30%.
The wider margin of the URP business of over 40% is an important
factor in helping the company deleverage. However, Kaisa's leverage
will be sustained at a high level if it expands its scale at the
same pace as in 2017 and 2018, as URPs only contributed to 30% of
its contracted sales in 2018.

KEY RATING DRIVERS

URPs a Business Strength: Fitch believes Kaisa's URP business
offers operational flexibility as its high profitability enables
the company to sustain price cuts in a market downturn. Kaisa can
also sell the stakes in its URPs, if needed, at a profit because of
their low land cost. Kaisa's long experience in the URP business
has enabled it to secure a large land bank with a high gross profit
margin of over 40%, supporting the company's overall EBITDA margin,
excluding capitalized interest in cost of goods sold (COGS), of
30%-35%. A large URP pipeline of 119 projects (30 million sq m of
land) also allowed for a consistent stream of projects entering the
sales phase.

Kaisa has converted an average gross floor area (GFA) of 940,000 sq
m a year for the past 10 years and this also gives it some
operational flexibility with land replenishment. Nevertheless, the
URP business has limited scope to build scale and will become a
less important driver at higher rating levels. URPs require a
longer development cycle and thus funds will be trapped for a
longer period and incur higher funding without immediate cash flow
generation or profit contribution, raising Kaisa's leverage above
that of peers without as large an exposure to URPs. The nature of
the business and the high profitability mean Kaisa can operate at a
higher leverage than other Chinese homebuilders for a sustained
period.

High Leverage Constrains Ratings: Fitch expects Kaisa's leverage,
measured by net debt to adjusted inventory, to stay above 70% in
2019 but to fall below 70% thereafter. Kaisa's sales scale in 2019
would be insufficient to cover its high tax and interest burden.
Its reliance on the non-URP homebuilding business, which has a
lower margin, and growth at the business that is faster than we
expect may limit its capacity to deleverage. However, we think
there may be improvement once the company's attributable sales rise
above CNY100 billion from 2020 as its sales efficiency - contracted
sales/gross debt - will exceed 0.8x and support stronger funds flow
from operations.

Large and Premium Land Bank: Fitch believes Kaisa's good-quality
land bank will support the company's ability to meet its total
sales target of CNY90 billion in 2019. Its premium asset base can
also provide a buffer to Kaisa's liquidity at times when the
conversion of its URP land bank takes longer than the company
expects as it can easily find buyers for its well-located URPs,
especially those in Shenzhen. Kaisa's land bank totaled 24.0
million sq m (estimated sellable resources of CNY464 billion) at 31
December 2018, of which 13.0 million sq m, or 54.3%, was in the
Greater Bay Area and 3.2 million sq m in Shenzhen.

Robust Contracted Sales Growth: Fitch thinks Kaisa's 2019
contracted sales target is achievable due to the current supportive
policies in the Greater Bay Area and the company's well-located
land bank. Kaisa had total sellable resources of CNY158 billion at
end-2018, implying a sell-through rate of 57% in 2019 to support
its 20% sales growth, close to its historical sell-through rate of
around 60%. Kaisa's attributable contracted sales rose 57% to
CNY70.1 billion in 2018, supported by an average selling price
increase of 14% and GFA growth of 38%.

DERIVATION SUMMARY

Kaisa's attributable sales scale of CNY70 billion in 2018 is
comparable with that of 'BB' category peers such as CIFI Holdings
(Group) Co. Ltd. (BB/Stable), Logan Property Holdings Company
Limited (BB-/Positive) and China Aoyuan Group Limited
(BB-/Positive), and exceeds the CNY40 billion-50 billion sales of
Yuzhou Properties Company Limited (BB-/Stable), KWG Group Holdings
Limited (BB-/Stable) and Times China Holdings Limited (BB-/Stable).
Over 50% of Kaisa's land bank GFA is in the Greater Bay Area,
similar to that of Logan, China Aoyuan and Times China. Kaisa's
EBITDA margin of over 30% is at the higher end among the 'BB'
category peers, thanks to its high-margin URPs.

Kaisa's leverage of over 70% is similar to that of Oceanwide
Holdings Co. Ltd. (B-/Stable), Xinhu Zhongbao Co., Ltd. (B-/Stable)
and Tahoe Group Co., Ltd. (B-/Negative). Kaisa's business profile
is much stronger than that of Oceanwide and Xinhu, with a larger
sales scale and more diversified land bank. Its churn, measured by
contracted sales/total debt, of 0.64x is also healthier than the
ratios of the two companies, which are below 0.25x. Kaisa and
Tahoe, whose land bank is more exposed to the Pan-Bohai Area, the
Yangtze River Delta and Fujian province, have similar scale and
margin. However, Tahoe's shorter land bank life of two to three
years puts pressure on its leverage and Tahoe's liquidity is much
tighter than that of Kaisa.

Kaisa's closest peer among 'B' rated issuers is Yango Group Co.,
Ltd. (B/Positive). Yango's sales of CNY118 billion in 2018 was
larger than Kaisa's CNY70 billion and its land bank is also more
diversified. However, Yango's EBITDA margin, excluding capitalized
interest, of less than 20% is narrower than Kaisa's more than 30%.
Yango's leverage, measured by net debt/adjusted inventory, was high
at 71% by end-2018, similar to that of Kaisa.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Our Rating Case for the Issuer

- Attributable contracted sales to rise 20% in 2019 and 2020

- Attributable land premium to contracted sales at 28% in 2019 and
31% in 2020 (2018: 23%)

- Cash collection rate of around 80% in 2019 and 85% in 2020
(2018: 75%)

- Construction cost to sales proceeds at around 30% in 2019 and
2020 (2018: 30%)

- Dividend payout ratio of 20% of net income (2018: 19%)

RATING SENSITIVITIES

Developments That May, Individually or Collectively, Lead to
Positive Rating Action

- Leverage, measured by net debt/adjusted inventory, sustained
below 60%

- EBITDA margin, excluding capitalized interest in COGS, sustained
above 30%

Developments That May, Individually or Collectively, Lead to
Negative Rating Action

- Leverage, measured by net debt/adjusted inventory, sustained
above 75%

- EBITDA margin, excluding capitalized interest in COGS, sustained
below 25%

LIQUIDITY

Cash Meets Short-Term Obligations: Kaisa had cash and cash
equivalents of CNY22.5 billion as of end-2018, including restricted
cash of CNY6.8 billion, against CNY17.0 billion in short-term debt.
The company had total credit lines of CNY165 billion at end-2018,
of which CNY119 billion was unused. In addition, Kaisa obtained
approval from the Shenzhen Stock Exchange to issue four
asset-backed securities, consisting of CNY5 billion linked to
supply chain financing, CNY3 billion linked to long-term rental
apartments, CNY685 million secured by mortgage balloon payments
(issued) and CNY475 million backed by income of its shipping
business (issued). Kaisa's average funding cost stayed flat at
8.42% in 2018.

KAISA GROUP: Moody's Rates USD400MM & USD350MM Senior Notes 'B2'
----------------------------------------------------------------
Moody's Investors Service has assigned a B2 senior unsecured rating
to the existing USD400 million and USD350 million senior notes
issued by Kaisa Group Holdings Ltd (B1 stable) in February and
April 2019 respectively.

The proceeds of the notes were used by Kaisa mainly to repay
existing debt.

RATINGS RATIONALE

Kaisa's B1 CFR reflects its strong sales execution in the
Guangdong-Hong Kong-Macao Bay Area, established track record with
high-margin urban redevelopment projects, and good quality land
banks in high-tier cities such as Shenzhen.

However, the company's rating is constrained by its moderate
financial metrics, history of debt restructuring and share
suspension, and high financing costs.

The B2 senior unsecured ratings are one notch lower than the
corporate family rating due to structural subordination risk. This
subordination risk refers to the fact that the majority of Kaisa's
claims are at its operating subsidiaries and have priority over
claims at the holding company in a bankruptcy scenario. In
addition, the holding company lacks significant mitigating factors
for structural subordination, resulting in a lower expected
recovery rate for claims at the holding company.

The stable outlook reflects Moody's expectation that Kaisa will
maintain its sales growth in high-tier cities, high profit margins
and good liquidity. The outlook also incorporates Moody's
expectation that the company will expand its access to funding over
the next 12-18 months.

Kaisa's liquidity is good. The company's cash holdings of RMB22.3
billion at 31 December 2018 could cover about 1.3x of its
short-term debt as of the same date. Moody's also expects that
Kaisa's cash holdings and operating cash flow will sufficient to
cover its short-term debt and committed land payments over the next
12-18 months.

Moody's could upgrade Kaisa's ratings if the company (1) maintains
its good liquidity position; (2) diversifies its funding channels;
and (3) improves its adjusted EBIT/ interest coverage to above
3.0x-3.5x and revenue/ adjusted debt to above 75%-80% on a
sustained basis.

On the other hand, downward ratings pressure could emerge if the
company fails to achieve sales growth, or aggressively acquires
lands beyond Moody's expectation, such that its financial metrics
and liquidity deteriorate.

Credit metrics that could trigger a rating downgrade include (1)
revenue/adjusted debt below 50% on a sustained basis; (2) adjusted
EBIT/ interest coverage below 2.0x on a sustained basis; or (3)
cash to short-term debt below 1.0x-1.5x.

The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in January 2018.

Kaisa Group Holdings Ltd engages in real estate development in
China. The company has a long operating history that spans over 20
years and has established a well-recognized brand, particularly in
urban redevelopment projects in the Greater Bay Area. At 31
December 2018, it had an aggregate gross floor area of 24 million
square meters of saleable resources across 45 cities in China.

Kaisa's operations also involve property management and
non-property related businesses, including hotel and catering
operations, cinema, department store and cultural center
operations, and waterway passenger and cargo transportation.

Founded in 1999, the company is listed on the Hong Kong Stock
Exchange, with its headquarters in Shenzhen. At 31 December 2018,
Kaisa was 39%-owned by its founder, Mr. Kwok Ying Shing, and his
family members.


KANGMEI PHARMA: Regulator Confirms Company Faked Financial Data
---------------------------------------------------------------
Wang Juanjuan, David Kirton and Han Wei at Caixin Global reports
that one of China's largest listed drugmakers has asked the
Shanghai stock exchange to suspend trading of its shares from May
20 as it tries to limit the damage after regulators confirmed the
company fabricated its financial reports between 2016 and 2018.

According to Caixin, the China Securities Regulatory Commission
(CSRC) found troubled medicine manufacturer Kangmei Pharmaceutical
Co. Ltd. had used fake bank deposit slips to inflate its cash
reserves, forged documents for non-existent business activities,
and transferred company funds to related parties to trade in its
own stock, it said on May 17.

Caixin relates that Kangmei tried on May 18 to try to limit the
damage, confirming in a stock filing that the company moved CNY8.88
billion ($1.28 billion) through affiliated companies to purchase
its own shares. It admitted that the practice made it "difficult
for investors to judge the company's prospects and investors'
rights and interests may have been damaged,” in a filing with the
Shanghai exchange.

Caixin says the filing announced that the company had asked the
exchange to suspend trading of its shares from May 20. Trading in
the company's shares would then be moved to the risk warning board,
where stock price changes would be limited to a daily movement of
5% to curb volatility.

The company's shares have been in tumult since April 30, when it
disclosed that regulators were investigating suspicions that it
overstated its cash reserves on hand by CNY29.9 billion ($4.3
billion). Since then, shares have fallen by over a third, with
declines regularly hitting the stock exchange's 10% daily movement
limit, Caixin relays.

Several audit professionals told Caixin they were concerned that
there may be problems in Kangmei's financials beyond accounting
errors, given the vague language and lack of logic in its corrected
financial statement. The company may have intentionally inflated
its cash holding and inventories to boost profit, they said.

But earlier in the month company founder and chairman Ma Xingtian
described the overstatement as an "accounting error" resulting from
loopholes in internal controls and financial management. Correcting
for the errors, the company’s net profits in 2016 and 2017 were
reduced by half, Caixin says.

Kangmei has previously been involved in several bribery cases
involving government officials. Caixin, citing court documents
released last June, discloses that the company paid Cai Ming,
former director of the drug safety supervision department at the
Guangdong Province Food and Drug Administration, 300,000 yuan to
help Kangmei and 27 other pharmaceutical companies obtain drug
approvals and drug safety certificates in 2014 and 2015. Cai was
convicted of accepting bribes and sentenced to eight years in
prison.

In February, the company’s financial position put it at risk of
defaulting on $300 million of its bonds, Caixin recalls. The crisis
was averted after the Guangdong provincial government stepped in
with financial help.

Caixin says the fallout from the financial scandal has also hit
Kangmei’s accounting firm, GP Certified Public Accountants Co.
Ltd., with the company losing two customers last week on concerns
over its role in the accounting errors. It is likely to face the
loss of further business as more than 40 of its clients have yet to
hold their annual shareholder meetings to decide on accounting
partners. Data from market information provider WindInfo showed
that GP Certified was the auditor of 92 listed companies in 2018.

Kangmei Pharmaceutical Co., Ltd. produces and sells Chinese
medicines in China. It also offers chemical medicines and food
products; and operates hospitals and Chinese medicine pharmacies.

REDCO PROPERTIES: S&P Affirms 'B' Long-Term ICR, Outlook Stable
---------------------------------------------------------------
On May 20, 2019, S&P Global Ratings affirmed its 'B' long-term
issuer credit rating on Redco Properties Group. At the same time,
S&P affirmed its 'B' long-term issue ratings on the company's
senior unsecured notes.

S&P affirmed its rating because it expects Redco's growth in
contracted sales to remain strong and its gross profit to be stable
over the next two years. However, the company's aggressive
expansion should keep its leverage high.

Redco is likely to be able to meet its 2019 sales target of Chinese
renminbi (RMB) 27 billion–RMB28 billion, supported by nearly
RMB55 billion-RMB60 billion of saleable resources and good sales
execution. However, S&P expects the contribution from join ventures
(JVs) to remain high, lowering Redco's attributable portion to
50%-55% for the next two years, from 57% in 2018 and about 70% in
2017.

Redco was among the top 100 Chinese developers in 2018, with RMB22
billion in contracted sales. Its geographic diversity has also
improved. The company increased coverage to 15 cities in 2018, from
11 in 2017. Its contracted sales from its top three cities fell to
about 60% in 2018, versus above 70% before. S&P expects the
contribution from these cities to reduce to close to 50% in two to
three years.

S&P said, "We expect Redco's revenue growth to accelerate over the
next two years, with the recent strong increase in contracted
sales. Sales at the company's Shanghai commercial project dragged
down revenue recognition in 2018. That said, we believe Redco will
ensure its stake in its JV projects stays above 50%, or the company
obtains absolute control for project consolidation and revenue
recognition.

"We forecast that Redco's gross profit margin will remain stable at
about 30% over the next two years due to a fading out of
resettlement expenses at its Yantai project and improving
profitability at its Tianjin Binhai project. Redco's profitability
was dragged down to the low-twenties in the past by its Yantai
project, which had large resettlement expenses, and its Tianjin
Binhai project, which had a weak average selling price in the past.
However, Yantai's resettlement is now largely completed and
Tianjin's average selling price has significantly risen from levels
in 2016 and 2017. We have raised our assessment on Redco's business
risk profile to weak from vulnerable based on the above factors."

Despite the solid scale growth and more stable profitability, Redco
has a smaller business scale than its peers, given slower growth in
the past. Besides, the company faces greater execution risk as it
enters new cities and because of its lower attributable ratio,
especially in JVs. As a result, S&P adjusts the rating downward by
one notch in our comparable rating analysis.

S&P said, "We believe Redco has disciplined financial management.
Its net gearing has been low, with the ratio of net debt to equity
at about 48% in 2018. Redco also completed a US$175 million
syndicated loan facility in March 2019, which shows banks'
recognition of the company's financial management. Peers larger
than Redco have not managed to obtain such facilities.

"The stable outlook reflects our expectation that Redco will
continue to expand its operating scale and have stable
profitability and effective control over debt leverage over the
next two years. In our base case, we expect the company's
debt-to-EBITDA ratio to stay at around 5.0x over the next two
years.

"We could lower the rating if Redco's debt-to-EBITDA ratio stays
above 6.5x without signs of improvement. This could happen if: (1)
the company's debt-funded expansion is more aggressive than we
expect; (2) the company's contracted sales are substantially below
our estimate; or (3) its project delivery slips such that expansion
and revenue recognition is significantly lower than our forecast.

"We could also lower the rating if Redco's liquidity significantly
worsens with liquidity sources falling below 1.2x uses, or if it
faces difficulty to obtain refinancing.

"We could raise the rating if Redco continues to substantially
expand its operating scale and improve its project and geographic
diversity such that its business scale is more comparable to that
of peers rated 'B+'. The company would also need to have stable
leverage.

"We could also raise the rating if Redco maintains more prudent
financial management, such that the debt-to-EBITDA ratio is below
4x on a sustained basis."


TUNGHSU GROUP: Fitch Withdraws B- LT FC Issuer Default Rating
-------------------------------------------------------------
Fitch Ratings has withdrawn Tunghsu Group Co., Ltd.'s Long-Term
Foreign-Currency Issuer Default Rating of 'B-' with a Negative
Outlook as well as the senior unsecured rating of 'B-' with a
Recovery Rating of 'RR4', which includes its USD440 million (USD370
million outstanding) 7% bond due 2020 issued by its subsidiary,
Tunghsu Venus Holdings Limited.

KEY RATING DRIVERS

Fitch is withdrawing the ratings as Tunghsu Group has chosen to
stop participating in the rating process. Therefore, Fitch will no
longer have sufficient information to maintain the ratings.
Accordingly, Fitch will no longer provide ratings or analytical
coverage for Tunghsu Group.

The audited reports of Tunghsu Group and its listed subsidiaries
showed that total debt at the holding-company level--defined as the
consolidated group excluding the two main listed subsidiaries,
Tunghsu Optoelectronic Technology Co Ltd and Tunghsu Azure
Renewable Energy Co Ltd--remained high at CNY58 billion in 2018.
The holding-company level EBITDA interest coverage remained very
weak, below 1x, as a result of high borrowing costs. Fitch believes
structural subordination exists at the holding-company level and it
has become more important to consider the company's financial
metrics on a deconsolidated basis, particularly liquidity and
refinancing ability, due to its weak financial profile.



=================
H O N G   K O N G
=================

WTT HK LIMITED: Moody's Upgrades CFR to Ba3 on Merger With HKBN
---------------------------------------------------------------
Moody's Investors Service has upgraded to Ba3 from B1 the corporate
family rating of WTT HK Limited, and the rating on the senior
unsecured notes issued by WTT Investment Ltd and guaranteed by WTT
HK Limited.

The outlook is positive.

The rating action follows the completion on 30 April 2019 of the
merger between WTT and HKBN Ltd., and concludes Moody's review for
upgrade initiated on 9 August 2018.

RATINGS RATIONALE

"The upgrade primarily reflects the incorporation of a one-notch
rating uplift based on the increased likelihood of extraordinary
support from HKBN, given HKBN's stronger credit quality and the
expectation that WTT will become a core part of HKBN group," says
Gloria Tsuen, a Moody's Vice Present and Senior Credit Officer.

Moody's support assumption reflects WTT's high strategic importance
to HKBN's operations, as the former will significantly strengthen
the latter's core enterprise fixed-line business, enabling it to
achieve greater economies of scale and cost savings.

"The positive outlook reflects the likelihood that as WTT and HKBN
become more integrated, so will their credit profiles and credit
quality," adds Tsuen.

HKBN merged with WTT for a consideration of around HKD5.5 billion
in new HKBN shares and vendor loan notes, and it is also assuming
WTT's existing $670 million USD senior unsecured notes.

The merger will strengthen HKBN's competitive position in Hong
Kong's enterprise fixed-line telecom market, with a widened network
coverage, and a larger and more diversified customer base. In
particular, WTT and HKBN complement each other as the former
focuses on medium and large-sized enterprises, while the latter
focuses on small and medium-sized enterprises.

WTT's operations in turn will benefit from the expected synergies
with HKBN, which is a larger and more integrated telecom service
provider in Hong Kong, providing inter alia residential fixed-line
services and mobile services.

The support assumption also considers HKBN's ability to render
support, underpinned by its stronger business profile and credit
metrics even after accounting for WTT's existing debt.

Moody's estimates that HKBN registered adjusted debt/EBITDA of
around 3.4x for the 12 months to February 2019, significantly lower
than the 6.0x reported by WTT for 2018.

Moody's estimates that the combined company will record adjusted
debt/EBITDA of around 4.9x (with vendor loan notes included in
adjusted debt) on a proforma basis for HKBN's fiscal year ending
August 2019, and that leverage will decrease to around 4.4x by
fiscal 2020 as EBITDA grows at the combined company.

The upgrade also reflects Moody's expectation that HKBN's major
operating subsidiaries will provide guarantees for the senior
unsecured notes, which will eliminate the risk of structural
subordination.

WTT's b1-level standalone credit quality continues to reflect its
established infrastructure with modest capital spending needs,
diverse customer base, high profitability, stable cash flow
generation and adequate liquidity.

On the other hand, WTT's credit quality remains constrained by its
geographic concentration in Hong Kong, and its modest scale when
compared to global telecommunications peers.

The ratings could be upgraded if (1) HKBN successfully integrates
WTT's operations, and (2) the provision of guarantees from HKBN's
operating subsidiaries for the senior unsecured notes is completed
as expected.

The outlook on WTT could return to stable if (1) HKBN fails to
fully integrate WTT and credit differentiation persists between
itself and WTT, although this development is unlikely, (2) the
combined company's market share or profitability erodes
significantly, or (3) the combined company's adjusted debt/EBITDA
remains elevated at above 5x over the next 12-18 months.

The principal methodology used in these ratings was
Telecommunications Service Providers in January 2017.

Established in 1995, WTT (formerly known as Wharf T&T) is an
enterprise-focused fixed-line telecom operator in Hong Kong. WTT
offers a full range of products, including data connectivity,
broadband, fixed-line voice, cloud services and a wide range of
in-house ICT solutions.

Founded in 1999 and listed since 2015 in Hong Kong, HKBN Ltd. is a
fixed-line telecommunications network service provider offering
residential and enterprise solutions.



=========
I N D I A
=========

ARISTO INDUSTRIES: ICRA Maintains B+/A4 Rating in Not Cooperating
-----------------------------------------------------------------
ICRA said the ratings for the INR12.00 crore bank facilities of
Aristo Industries continue to remain in the 'Issuer Not
Cooperating' category. The ratings are now denoted as "[ICRA]B+
(Stable)/ [ICRA]A4 ISSUER NOT COOPERATING".

                        Amount
   Facilities        (INR crore)    Ratings
   ----------        -----------    -------
   Unallocated Limits    12.00      [ICRA]B+ (Stable)/[ICRA]A4
                                    ISSUER NOT COOPERATING;
                                    Ratings continue to remain
                                    in the 'Issuer Not
                                    Cooperating' category

The rating is based on no updated information on the entity's
performance since the time it was last rated in August 2016. The
lenders, investors and other market participants are thus advised
to exercise appropriate caution while using this rating as the
rating does not adequately reflect the credit risk profile of the
entity. The entity's credit profile may have changed since the time
it was last reviewed by ICRA; however, in the absence of requisite
information, ICRA is unable to take a definitive rating action.

As part of its process and in accordance with its rating agreement
with Aristo Industries, ICRA has been trying to seek information
from the entity so as to monitor its performance, but despite
repeated requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information, and in
line with SEBI's Circular No.
SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's Rating
Committee has taken a rating view based on the best available
information.

Incorporated in 2009, Aristo Industries (AI) used to manufacture
polyfibre mattresses from its unit in Tinsukia, Assam and traded in
fabrics. The company started merchant trading in steel rebars and
shafts from FY2015 onwards.

ARJAY APPAREL: ICRA Withdraws B Rating on INR3.0cr Loan
-------------------------------------------------------
ICRA has withdrawn the long-term rating of [ICRA]B with a stable
outlook and the short-term rating of [ICRA]A4 assigned to the
INR9.00 crore bank facilities of Arjay Apparel Industries Limited.

                     Amount
   Facilities      (INR crore)    Ratings
   ----------      -----------    -------
   Fund-based-
   Cash Credit         1.20       [ICRA]B (Stable); Withdrawn

   Fund-based-
   Overdraft           3.00       [ICRA]B (Stable); Withdrawn

   Fund-based-
   Temporary
   Overdraft           0.20       [ICRA]B (Stable); Withdrawn

   Non-fund Based-
   Letter of Credit    1.50       [ICRA]A4; Withdrawn

The ratings are withdrawn in accordance with ICRA's policy on
withdrawal and suspension, at the request of the company, and on
the basis of the no objection certificate received from its
banker.

Arjay Apparel Industries Limited belongs to Aarjay Group, which is
into textile manufacturing and marketing of garments in 1981. The
Aarjay Group of Companies is owned by Sanghai Family. The textile
division has its production base at Tirupur in South India with its
corporate office in Mumbai. The group has its textile export
division under Someshwara Industries and Exports Limited
(Someshwara).

AXISON VITRIFIED: ICRA Migrates B+ Rating to Not Cooperating
------------------------------------------------------------
ICRA has moved the ratings for the INR15.07 crore bank facilities
of Axison Vitrified Pvt. Ltd. to the 'Issuer Not Cooperating'
category. The rating is now denoted as "[ICRA]B+ (Stable)/A4 ISSUER
NOT COOPERATING".

                    Amount
   Facilities     (INR crore)    Ratings
   ----------     -----------    -------
   Term Loan          9.87       [ICRA]B+ (Stable) ISSUER NOT
                                 COOPERATING; Rating moved to
                                 'Issuer Not Cooperating'
                                 Category

   Cash Credit        3.70       [ICRA]B+ (Stable) ISSUER NOT
                                 COOPERATING; Rating moved to
                                 'Issuer Not Cooperating'
                                 Category

   Bank Guarantee     1.50       [ICRA]A4 ISSUER NOT
                                 COOPERATING; Rating moved to
                                 'Issuer Not Cooperating'
                                 Category

ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuer's performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity.

Incorporated in May 2016, Axison Vitrified Pvt. Ltd. manufactures
vitrified tiles at its plant situated at Morbi (Gujarat). The
company manufactures glazed vitrified tiles (GVT) and polished
glazed vitrified tiles (PGVT) in two sizes viz. 600 X 600 mm and
600 X 1,200 mm with annual installed capacity to manufacture 46,800
metric tonne of such tiles. It commenced its commercial operations
from July 18, 2017.

The company is promoted by Mr. Ashwin Laljibhai Ghodasara, Mr.
Chetan Morarjibhai Vadgasiya and Mr. Kirit Shivlal Bhalodiya,
having significant experience in ceramic industry through their
association with Patel's Ceramic Pvt. Ltd. (manufactures ceramic
clay), Axiom Ceramic Pvt. Ltd. (manufactures ceramic tiles) and
Bharat Minerals (manufactures ceramic clay).

B. R. SPONGE: ICRA Maintains B+ Rating in Not Cooperating
---------------------------------------------------------
ICRA said the ratings for the INR15.00 crore bank facilities of B.
R. Sponge & Power Limited continue to remain in the 'Issuer Not
Cooperating' category. The ratings are denoted as "[ICRA]B+
(Stable)/ [ICRA]A4 ISSUER NOT COOPERATING".

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Fund based-         12.50       [ICRA]B+ (Stable) ISSUER NOT
   Cash Credit                     COOPERATING; Rating continues
                                   to remain in the 'Issuer Not
                                   Cooperating' category

   Proposed Cash        2.50       [ICRA]B+ (Stable) ISSUER NOT
   Credit                          COOPERATING; Rating continues
                                   to remain in the 'Issuer Not
                                   Cooperating' category

   Fund based          (3.00)      [ICRA]A4 ISSUER NOT
   facility (Sub-                  COOPERATING; Rating continues
   limit of Cash                   to remain in the 'Issuer Not
   Credit)                         Cooperating' category

The rating is based on no updated information on the entity's
performance since the time it was last rated in August 2016. The
lenders, investors and other market participants are thus advised
to exercise appropriate caution while using this rating as the
rating does not adequately reflect the credit risk profile of the
entity. The entity's credit profile may have changed since the time
it was last reviewed by ICRA; however, in the absence of requisite
information, ICRA is unable to take a definitive rating action.

As part of its process and in accordance with its rating agreement
with B. R. Sponge & Power Limited, ICRA has been trying to seek
information from the entity so as to monitor its performance, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information,
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 01, 2016, ICRA's Rating Committee has taken a rating
view based on the best available information.

Incorporated in 2003, B. R. Sponge & Power Limited (BRSPL)
manufactures sponge iron with an annual installed capacity to
produce 60,000 metric tonnes per annum (MTPA) of sponge iron. The
manufacturing facility is located in Rajamunda in the Sundergarh
district of Odisha. The company is promoted by the Rourkela-based
Agarwal family.

BHOLA BABA: Insolvency Resolution Process Case Summary
------------------------------------------------------
Debtor: M/s Bhola Baba Exim Private Limited

        Registered office:
        A-91, Wazirpur Industrial Area
        New Delhi 110052

Insolvency Commencement Date: May 16, 2019

Court: National Company Law Tribunal, New Delhi Bench

Estimated date of closure of
insolvency resolution process: November 12, 2019
                               (180 days from commencement)

Insolvency professional: Vivek Raheja

Interim Resolution
Professional:            Vivek Raheja
                         JD-2C, 2nd Floor, Pitampura
                         New Delhi 110034
                         E-mail: vivek@vpgs.in
                                 ip.bbepl@gmail.com

Last date for
submission of claims:    June 1, 2019


EAST END: ICRA Maintains 'B' Rating in Not Cooperating
------------------------------------------------------
ICRA said the ratings for the INR14.00 crore bank facilities of
East End Technologies Private Limited continue to remain in the
'Issuer Not Cooperating' category. The ratings are denoted as
"[ICRA]B (Stable)/ [ICRA]A4 ISSUER NOT COOPERATING".

                     Amount
   Facilities      (INR crore)    Ratings
   ----------      -----------    -------
   Fund based-          2.00      [ICRA]B (Stable) ISSUER NOT
   Cash Credit                    COOPERATING; Rating continues
                                  to remain in the 'Issuer Not
                                  Cooperating' category

   Non fund based-      4.50      [ICRA]B (Stable) ISSUER NOT
   Bank Guarantee                 COOPERATING; Rating continues
                                  to remain in the 'Issuer Not
                                  Cooperating' category

   Fund based-          0.50      [ICRA]A4 ISSUER NOT
   Standby line                   COOPERATING; Rating continues
   of credit                      to remain in the 'Issuer Not
                                  Cooperating' category

  Unallocated Limits    7.00      [ICRA]B (Stable)/[ICRA]A4
                                  ISSUER NOT COOPERATING;
                                  Ratings continue to remain
                                  in the 'Issuer Not Cooperating'
                                  category

The rating is based on no updated information on the entity's
performance since the time it was last rated in July 2016. The
lenders, investors and other market participants are thus advised
to exercise appropriate caution while using this rating as the
rating does not adequately reflect the credit risk profile of the
entity. The entity's credit profile may have changed since the time
it was last reviewed by ICRA; however, in the absence of requisite
information, ICRA is unable to take a definitive rating action.

As part of its process and in accordance with its rating agreement
with East End Technologies Private Limited, ICRA has been trying to
seek information from the entity so as to monitor its performance,
but despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information,
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 01, 2016, ICRA's Rating Committee has taken a rating
view based on the best available information.

Incorporated in 1999, East End Technologies Private Limited is
engaged in the fabrication of mild steel and stainless steel
products such as ladders, industrial columns, chimneys, heat
exchangers, agitators, commercial fans, ladles, etc. Besides, the
company is also involved in laying of underground/ above-ground
pipelines and undertaking repair and maintenance jobs. Promoted by
Mr. Sandeep Patnaik, the company's manufacturing facility is
located at Choudwar, Odisha.

ELECON: CARE Migrates B Rating to Not Cooperating Category
----------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Elecon
to Issuer Not Cooperating category.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank       3.00       CARE B; Stable; Issuer Not
   Facilities                      Cooperating; Based on best
                                   Available information

   Short-term Bank      2.60       CARE A4; Issuer Not
   Facilities                      Cooperating; Based on best
                                   Available information

Detailed Rationale & Key Rating Drivers

CARE had, vide its press release dated December 26, 2017 placed the
rating of Elecon under the 'issuer non-cooperating' category as
Elecon had failed to provide information for monitoring of the
rating. Elecon continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone calls
and a letter dated February 28, 2019 and February 26, 2019. 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 Elecon's facilities will now be denoted as 'CARE B;
Stable/CARE A4; 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.

Detailed description of the key rating drivers

At the time of last rating on December 26, 2017, the following were
the rating strengths and weaknesses:

Key Rating Weaknesses

Small and fluctuating scale of operations with low net-worth base:
The scale of operations stood small and the small scale limits the
firm's financial flexibility in times of stress and deprives it
from scale benefits.

Low profitability margins and Leveraged capital structure: The
profitability margins of Elecon remained historically low owing to
the intense market competition given the highly fragmented nature
of the industry. The firm has leveraged capital structure mainly
attributable to low net-worth base and high dependence on bank
borrowing to meet its working capital requirements.

Volatility associated with copper and aluminum prices: The firm is
exposed to the raw material price volatility risk due to the
volatility experienced in the prices of aluminum, copper etc. which
fluctuated widely with global demand and supply scenario. They
constitute a major component of the raw material and hence any
volatility in their prices has a direct impact on the profitability
margins of the firm.

Presence in competitive and fragmented nature of magnetic wire
industry: The magnetic wire manufacturing industry is fragmented
with the presence of large number of organized and unorganized
players leading to high competition. Further due to less capital
intensive lead to presence of multiple players manufacturing
similar product which restricts management profitability profile
over the medium term. All this leads to high competition among the
various players and low bargaining power with suppliers.

Key Rating Strengths

Experienced directors: Mr Atul Jain; Partner of Elecon is a
graduate by qualification and has more than two decades of
experience in magnetic wire manufacturing business through his
association with Elecon. Mrs Vidushi Jain, Partner of Elecon is a
graduate by qualification and has around a decade of experience in
firm line of business through her association with Elecon. All the
partners collectively look after the overall operations of the
firm.

Healthy relations with customer and suppliers: Elecon has healthy
association with customers as well as suppliers, evident from
regular demand from its customers and uninterrupted supply of raw
material from its suppliers ensures timely execution of work
awarded. Elecon's key raw material is copper, aluminum, glass
fiber, electrical insulation paper etc, which they procure from
Sterlite Copper Limited, Hindalco Industries Limited, Bawa
Polymers, Electra Paper and Board Private Limited and selling the
finished goods to players such as, Hi-tech Transformers (I) Private
Limited, Modern Transformer Private Limited etc who are operating
in domestic market, with whom they are associated more than one and
half decade.

Uttar Pradesh based Elecon was established in 1992 and the firm is
currently being managed by Mr Atul Jain and Mrs. Vidushi Jain.
Elecon is engaged in manufacturing of magnetic wires. The firm
procures copper, aluminium, glass fibre and electrical insulation
paper domestically. The firm sells its product domestically to
manufacturing companies.

ESSAR STEEL: Reports INR4,229cr EBITDA During Insolvency Period
---------------------------------------------------------------
Livemint.com reports that debt-ridden Essar Steel has registered an
EBITDA (earnings before interest, tax, depreciation and
amortisation) of INR4,229 crore during its Corporate Insolvency
Resolution period (over 600 days).

In an affidavit filed before the National Company Law Appellate
Tribunal (NCLAT) last week, the resolution professional said the
company earned INR4,000 crore from its operations between August
2017 and February 2019. In addition, the RP also mentioned an
earning of INR229 crore for March this year, Livemint.com relates.

Moreover, this amount "excludes INR734 crore EBITDA utilised for
Finance Costs (Financial Lease, LC/BG Charges to banks and finance
charges on payables to suppliers etc) for maintaining the Corporate
Debtor (Essar Steel) as a going concern," the affidavit said,
Livemint.com relays.

According to Livemint.com, the affidavit was filed following the
directions of the appellate tribunal, which, on May 7, 2019,
directed the RP of Essar Steel to submit the details of earnings
from operations of the company during the corporate insolvency
period.

The affidavit, however, said the "figures from 1 April 2019 till
date are not available," Livemint.com adds.

Insolvency resolution proceedings of Essar Steel had commenced on
Aug. 2, 2017 after the application under Section 7 of the
Insolvency and Bankruptcy Code, 2016, was admitted by the NCLT's
Ahmedabad Bench.

The Committee of Creditors (CoC) had voted in favor of the
INR42,000-crore takeover plan of global steel major ArcelorMittal,
Livemint.com notes.

Later, the National Company Law Tribunal (NCLT) had also approved
the ArcelorMittal’s resolution plan. However, it had asked the
CoC to look into the issues of distribution of money to operational
creditors of the company.

According to the report, operational creditors of Essar Steel are
not satisfied with the CoC over the distribution of INR42,000 crore
coming from the resolution plan by global steel major
ArcelorMittal.

Livemint.com relates that the CoC of Essar Steel has divided
operational creditors of the company into two categories -- one
with claims under INR1 crore and another above INR1 crore.

On May 16, the CoC had informed the NCLAT that out of the INR42,000
crore coming from the resolution plan of ArcelorMittal, INR2,500
crore had been marked as the working capital of the debt-laden
firm, Livemint.com recalls.

The CoC's submission before a National Company Law Appellatre
Tribunal (NCLAT) implied that only INR39,500 crore would be
available for distribution among financial and operational
creditors, Livemint.com relays.

It had also informed the appellate tribunal that the actual upfront
amount is INR39,500 crore and the rest INR2,500 crore has been
committed as working capital for Essar Steel, adds Livemint.com.

                         About Essar Steel

Incorporated in 1976, Essar Steel India Ltd. is a part of the Essar
Group and is having 10 MTPA integrated steel manufacturing
facilities at Hazira, Gujarat and iron ore beneficiation and
pelletisation facilities in Paradeep, Odisha (12 mtpa) and Vizag,
Andhra Pradesh (8 mtpa). The company also owns and operates two
iron ore slurry pipelines -- one each in Odisha (Dabuna to Paradip)
and Andhra Pradesh (Kirandul-Vizag), which transport the
iron ore slurry from the beneficiation plant (located near the
iron ore mines in Dabuna and Kirandul) to the pellet plant
(located near the Paradip and Vizag ports). A large portion of the
iron ore pellets produced are intended for captive consumption by
ESIL's steel plant at Hazira for cost optimization.

The National Company Law Tribunal (NCLT) - Ahmedabad Bench
admitted Essar Steel's insolvency case on Aug. 2, 2017.

Satish Kumar Gupta of Alvarez and Marsal India has been appointed
as interim resolution professional upon the suggestion of State
Bank of India (SBI).

Essar Steel owes more than INR45,000 crore to lenders, of which
INR31,671 crore had already been declared as non-performing as of
March 31, 2016, The Economic Times disclosed. The SBI-led
consortium of 22 creditors accounts for 93% of this amount. Essar
Steel owes $450.67 million to Standard Chartered Bank (SCB) in
debt.

GARDEN SILK: CARE Migrates D Rating to Not Cooperating Category
---------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Garden
Silk Mills Limited (GSML) to Issuer Not Cooperating category.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank    1,779.32      CARE D; Issuer not cooperating;
   Facilities-                     Based on best available
   Fund based                      information

   Short-term Bank     532.00      CARE D; Issuer not cooperating;

   Facilities-Non-                 Based on best available
   fund based                      information

Detailed Rationale & Key Rating Drivers

CARE has been seeking No Default Statement (NDS) from GSML to
monitor the rating vide email communications dated January 1, 2019,
January 3, 2019, January 7, 2019 , January 23, 2019, January 31,
2019, February 1, 2019, February 5, 2019, February 7, 2019,
February 7, 2019, February 15, 2019, March 30, 2019, April 1, 2019,
April 3, 2019, April 8, 2019, April 16, 2019, May 2, 2019 and
numerous phone calls.  However, despite CARE's repeated requests,
the company has not provided the NDS 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 GSML'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.

The ratings assigned to the bank facilities of GSML takes in to
account ongoing delays in servicing of the debt obligations by the
company.

Detailed description of the key rating drivers

At the time of last rating on February 21, 2019 the following were
the rating weaknesses.

Key rating weaknesses:

Ongoing delays in debt servicing: Continuous delays in servicing of
its debt obligations on account of stretched liquidity position.

Incorporated in 1979, Garden Silk Mills Limited (GSML) is engaged
in manufacturing of polyester chips, polyester filament yarn and
polyester textile fabrics. It manufactures synthetic fabric under
the brand names, Garden and Vareli, they deal in wide range of
Polyester Chips, Polyester Filament Yarns (PFY), Preparatory Yarns,
Woven (grey) Fabric as well as Dyed and Printed Sarees and Dress
Materials The manufacturing facilities are located in Vareli
(weaving unit) and Jolwa (manufacturing unit of chips and yarn), in
Surat District.

GTN INDUSTRIES: ICRA Hikes Rating on INR50.70cr Loan to C
---------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of
GTN Industries Limited (GTNIL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Term loans           50.70      Ratings downgraded to [ICRA]D
                                   from [ICRA]B(Positive) and
                                   simultaneously upgraded to
                                   [ICRA]C

   Fund-based limits    87.36      Ratings downgraded to [ICRA]D
                                   from [ICRA]A4 and
                                   simultaneously upgraded to
                                   [ICRA]A4

   Non-fund-based
   Limits               26.20      Ratings downgraded to [ICRA]D
                                   from [ICRA]A4 and
                                   simultaneously upgraded to
                                   [ICRA]A4

   Unallocated limits   18.50      Ratings downgraded to [ICRA]D
                                   from [ICRA]A4 and
                                   simultaneously upgraded to
                                   [ICRA]A4

Rationale
The downward revision in the ratings follows the irregularity in
debt servicing by GTNIL in the past, and ICRA has simultaneously
upgraded the ratings with the subsequent regularisation of debt
servicing.

The ratings consider the modest performance of GTNIL in FY2019,
with weaker-than-expected earnings on the back of high cotton
prices and firm operating costs. Low operating profits and high
interest expenses resulted in net losses and consequent inadequate
credit metrics along with tight cash flow position. Thus, the
company remains dependent on external support (fund infusion by the
promoter group) for managing its cash flows. GTNIL enjoys regular
funding support from the promoter group (including GTN Engineering
Limited, rated at [ICRA]BBB+(Positive)/A2+) through unsecured loans
and redeemable preference shares. The tepid performance in the
recent quarters is despite the improvement witnessed in volumes and
operating efficiency in FY2019, which were aided by the capacity
expansion and automation initiatives undertaken in the preceding
fiscals. A diversified customer base, an established presence in
the medium and finer count segment and GTNIL's long relationship
with reputed customers also aided in volumes growth. The ability of
the company to sustain its revenue growth and improve profitability
and earnings to support its credit metrics and liquidity position
would be the key rating sensitivities, going forward.

Outlook: Not applicable

Key rating drivers

Credit strengths

Established presence for being a part of the GTN Group and a
diversified product range: GTNIL has been operating in the cotton
yarn market for over five decades, enjoying established
relationship with customers in both the domestic and exports
markets. GTNIL has presence across a diversified product base, with
the capability to produce yarn in a wide count range from 10s to
160s, apart from value-added facilities in the form of 100%
compact, gassed and twisting capacities. The company also enjoys
regular financial support from the promoters of the GTN Group and
from the promoter-owned group company, GTN Engineering Limited
(GEL).

Credit challenges

Weak financial profile: Leverage indicators of GTNIL remained
stretched in FY2019, owing to net losses incurred and firm debt
levels on the back of working capital intensive nature of
operations and capital expenditure incurred in the preceding
fiscals. Low earnings and high debt levels also resulted in modest
coverage metrics and tight liquidity position, leading to GTNIL's
continued dependence on funding support from the promoter group to
manage its cash flows and debt servicing.

Low operating margins and return indicators, limited by intense
competition and high operating costs: Despite a considerable
presence in the finer counts, GTNIL's operating margins and return
on capital employed have been constrained owing to its limited
pricing flexibility against rising operating costs. GTNIL operates
in an intensely competitive spinning industry, which coupled with
the established customer base restricts its pricing flexibility.
Thus, its earnings remain exposed to the volatility in cotton
prices, which have adversely impacted operating profits in the
past.

Liquidity position
GTNIL's liquidity position was strained in FY2019, owing to
lower-than-expected earnings from operations and high debt
repayment obligations. GTNIL's cash flows in the last fiscal were
aided by funding support from the promoter group. The company is
expected to have received around INR35 crore in the form of
unsecured loans during the said year. Utilisation of its fund-based
limits stood at ~93% during the 12-month period ended March 2019.
Going forward, any improvement in GTNIL's liquidity position would
remain dependent on its ability to sustain revenue growth and
expand its operating profitability. However, any sustained weakness
in performance could result in tight liquidity position and
continued dependence on external funding support for managing its
cash flows.

Group Company: GEL
ICRA expects GEL and GTNIL's promoters to extend financial support
to the company going forward, given the strategic importance that
GTNIL holds for the GTN Group. There exists a track record of
regular financial support over the years through unsecured loans
and redeemable preference shares.

GTNIL manufactures and trades in cotton yarn and is a part of the
established GTN Group, which has diversified business interests
ranging from textiles to engineering. GTN was founded by Late Mr. M
L Patodia and at present managed by Mr. M K Patodia. The company's
shares are listed on the Indian bourses and the promoters hold a
74.3% stake in the entity. GTNIL has an installed capacity of
97,584 spindles across its two spinning units at Medak, Andhra
Pradesh and Nagpur, Maharashtra. Around 60% of its sales are made
in the domestic market and the rest is exported to markets like
Brazil, Italy, Korea and Turkey among others.

HARESH OVERSEAS: ICRA Hikes Rating on INR5.0cr Loan to B-
---------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of
Haresh Overseas Private Limited (HOPL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Fund based-          5.00       [ICRA]B- (Stable); Upgraded
   Cash Credit                     from [ICRA]C+

   Fund based-          0.92       [ICRA]B- (Stable); Upgraded
   Term Loan                       from [ICRA]C+

   Non-fund based-
   Letter of Credit    34.37       [ICRA]A4; Reaffirmed

Rationale

The rating upgrade reflects the significant growth in HOPL's
operating income mainly driven by bulk orders from the key export
markets. Further, addition of new products in its chemical trading
portfolio is likely to render support to company's scale of
operation in the near term. . The ratings also continue to draw
comfort from the extensive experience of the promoters in the
chemical trading business and the company's diversified customer
base which helps in securing orders.

The ratings, however, remain constrained by the company's adverse
capital structure due to erosion of net worth given the past
accumulated losses. Furthermore, the ratings also remain
constrained by the company's weak profitability due to low value
added nature of trading operations, , and the intense competition
in the industry due to the presence of several organised as well as
unorganised players, which limit the pricing flexibility.

Outlook: Stable

ICRA expects HOPL will continue to benefit from the extensive
experience of its promoters. The outlook may be revised to Positive
if the company increases its scale of operations and profitability,
while maintaining its liquidity profile. The outlook may be revised
to a Negative if cash accrual is lower than expected, or a stretch
in the working capital cycle, weakens liquidity.

Key rating drivers

Credit strengths

Healthy ramp-up in scale of operation: The company booked a total
operating income of INR177.4 crore in FY2018, as against INR87.2
crore in FY2017 driven by large one time export orders. The growth
is likely to sustain as the company has introduced a new chemical -
acrylonitrile to its portfolio which accounted for 19% of the total
sales in 10m FY2019, and is expected to support its scale of
operations in FY2019.

Extensive experience of the promoter and Group companies in trading
of petrochemicals and speciality chemicals: The promoters of HOPL
have been in the petrochemical and speciality chemical industry for
more than three decades. The extensive experience and expertise of
the promoters and the top management has helped the company in
maintaining a longstanding relationship with established suppliers,
ensuring repeat orders from customers.

Credit challenges

Adverse capital structure due to accumulated losses: Continuous
significant losses in the past had eroded the company's net-worth
base, which led to an adverse gearing of 11.9 times and high
TOL/TNW of 69.7 times as on March 31, 2018.

Weak profitability levels due to low value-added nature of
business: The company has a moderate scale of operations and low
value-added nature of trading business restricts its profitability.
HOPL received significant Vinyl Acetate Monomer (VAM) export orders
in FY2018; however, VAM being lower margin product, the operating
profit margin decreased to 2.5% in FY2018 as against 4.0% in the
previous year.

Vulnerability to foreign currency fluctuation: The chemicals traded
are imported from across the globe, majorly from Saudi Arabia,
Thailand, directly from the manufacturers and in some cases from
the traders. However, the exports form a minor portion of the total
sales, thus exposing the company to foreign currency fluctuation
risk. Though partial forward hedging mitigates the risk to some
extent.

Intense competition in the fragmented trading business: The
chemical trading business is characterised by stiff competition
with a large number of companies in the organised as well as
unorganised sector and HOPL faces competition from many small and
large traders.

Liquidity position

HOPL's fund flow from operations (FFO) increased to INR2.5 crore in
FY2018 from INR1.5 crore in FY2017 on account of increase in scale
of operations and low finance costs. However, with high incremental
working capital requirement, the cash flow from operations turned
negative. HOPL has limited cushion available in the form of undrawn
working capital limits as non fund based limits remain fully
utilized in the past 12 month period ending in March 2019; however,
ICRA doesn't foresee any major concerns on liquidity given the
absence of capacity expansion plans, limited burden of term debt
repayments, besides minimal requirement of incremental working
capital funding.

HOPL was incorporated in 1983 and is at present managed by Mr.
Kailash S. Kasat. The company is headquartered in Mumbai
(Maharashtra) with branch offices in Cochin (Kerala), Gandhidham
(Gujarat) and Jodhpur (Rajasthan). HOPL is involved in trading,
marketing and distribution of petrochemicals and solvent. The
company is also a manufacturer and supplier of Guar gum powder and
has a state-of-the art manufacturing unit of 4500 MTPA capacity
with an in-house laboratory at Boronada Agro park Jodhpur
(Rajasthan), which started production in 2006. However, the
company's revenue from the Guar gum factory forms a minute part of
the total revenue.

In FY2018, HOPL reported a net profit of INR4.2 crore on an OI of
INR177.4 crore, compared to a net profit of INR2.0 crore on an OI
of INR87.2 crore in the previous year.


HARIOM COLD: CARE Assigns 'B+' Rating to INR4.80cr LT Loan
----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Hariom
Cold Storage (HCS), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank
   Facilities           4.80       CARE B+; Stable Assigned

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facility of HCS is primarily
constrained on account of its small scale of operations with weak
solvency and moderate liquidity position. The rating is, further,
constrained on account of its presence in the highly competitive
and fragmented warehousing industry and constitution as a
partnership concern.

The rating, however, drives strength from experienced management,
location advantage of its warehouses being located in potato
growing region and healthy PBILDT margin.

The ability of the firm to increase in the scale of operations with
improvement in the solvency position and efficient management of
working capital would be key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Small scale of operations and leveraged solvency position: Being
present in the service industry, the scale of operations of the
firm stood thin. During FY18, Total Operating Income (TOI)
increased by 13.65% over FY17 and stood small at INR1.34 crore. It
registered a TOI of INR1.30 crore in FY19. The capital structure of
the firm stood leveraged with an overall gearing of 2.19 times as
on March 31, 2018, improved from 4.56 times as on March 31, 2017
mainly on account of increase in net worth with decrease in total
debt. Increase in net worth of the firm owing to infusion of
capital amounting to INR0.88 crore and schedule repayment of term
loan resulted in decrease in total debt. Going forward the capital
structure is expected to deteriorate further owing to completion of
debt funded project in January, 2019.

The debt coverage indicators of the firm stood weak with total debt
to GCA of 10.16 times as on March 31, 2018, improved from 19.40
times as on March 31, 2017 mainly due to increase in GCA level
owing to registration of net profit in FY18. Further, the interest
coverage ratio stood moderate at 2.01 times in FY18.

Moderate liquidity position: Being present in the service industry,
the inventory period stood nil. Further, the firm provides the cold
storage facility to farmers and receives the payment either in
advance or 3-5 days. Thus, the working capital cycle stood negative
at 32 days in FY18. Current ratio and quick ratio stood comfortable
at 42.80 times in FY18. Further the cash and bank balance stood at
INR0.08 crore as on March 31, 2018.

Highly competitive and fragmented industry and constitution as a
partnership concern: The warehousing industry is characterized by
highly fragmented and competitive in nature as evident by the
presence of numerous unorganized and few organized players. Due to
this, the players in the industry do not have any pricing power.
The entry barriers in this industry are very low on account of low
capital investment and technological requirement. Further, its
constitution as a partnership concern with low net worth base
restricts its overall financial flexibility in terms of limited
access to external funds for any future expansion plans. Further,
there is inherent risk of possibility of withdrawal of capital and
dissolution of the firm in case of death/insolvency of partners.

Key Rating Strengths

Experienced management with location advantage: Mr. Nanuram
Choudhary, Partner, have around 20 years of experience in the
industry and looks after the overall affairs of HCS. Further he is
supported by other partners; Mr. Jeevan Choudhary and Mr. Sohan
Choudhary who also have more than two decades of experience in the
industry. The promoters have also promoted Hariom Traders which is
engaged in trading of agricultural commodities.

The firm is located in Madhya Pradesh which is fifth largest
producing potato state in India and Indore & Dewas produces large
quantity of potato. HCS's presence in the nearby area of potato
producing region results in benefit derived from low transportation
and storage cost with increase in scale of operations of the firm.

Healthy PBILDT margin with net profit in FY18: Being in service
industry, PBILDT margin of the firm stood healthy at 66.64% in
FY18, improved by 149 bps over FY17 mainly on account of higher
increase in Total Operating Income (TOI) of the firm with decrease
in power charges during the year. Further the firm registered net
profit of INR0.12 crore in FY18 against net loss of INR0.08 crore
in FY17 due to decrease in interest & finance cost on account of
schedule repayment of term loan. Furthermore, GCA level of the firm
has improved in FY18 over FY17 and stood thin at INR 0.45 crore.
However, going forward, interest expenses are expected to increase
owing to completion of debt funded project by the firm in FY19.

Indore (Madhya Pradesh) based HCS was formed in July 2016 as a
partnership concern by Choudhary Family. HCS is operating a cold
storage facility for providing services to farmers to store various
agricultural commodities specially potatoes with an installed
capacity of 12000 Metric Tones (MT) as on March 31, 2019.

JAYPEE INFRATECH: NCLAT Annuls Lenders' Voting on NBCC's Bid
------------------------------------------------------------
Livemint.com reports that the National Company Law Appellate
Tribunal (NCLAT) on May 17 annulled voting by the committee of
creditors on state-owned NBCC's bid to acquire Jaypee Infratech.

Hearing a plea by IDBI Bank, seeking a stay or annulment of the
voting process, a three-member bench of the NCLAT headed by
chairman justice S.J. Mukhopadhaya asked lenders to conduct fresh
voting from May 31, Livemint.com says.

Livemint.com relates that IDBI Bank, the biggest lender to the
debt-laden realty firm, had opposed NBCC's bid saying it was
conditional. It said NBCC's offer for the company was conditional
upon grant of approval to transfer Yamuna Expressway’s business
to NBCC.

According to the report, homebuyers and lenders of Jaypee Infratech
on May 16 started voting on NBCC's bid to acquire Jaypee group's
realty firm and complete the construction of over 20,000 flats. The
voting process was to end on May 19 and the outcome declared on May
20.

The bench also allowed CoC to renegotiate with the sole bidder,
NBCC India, on its offer, the report adds.

Justice Mukhopadhaya said the CoC may approve the plan if it is in
accordance with law, but in case of rejection they cannot pass it
until the NCLAT approves the rejection of the bid, relays
Livemint.com. The NCLAT also allowed nine homebuyers' associations,
representing around 5,000 buyers, to file intervention application,
the report says.

                       About Jaypee Infratech

Jaypee Infratech Limited (JIL) is engaged in the real estate
development.  The Company's business segments include Yamuna
Expressway Project and Healthcare.  The Company's Yamuna Expressway
Project is an integrated project, which inter alia includes
construction of 165 kilometers long six lane access controlled
expressway from Noida to Agra with provision for expansion to eight
lane with service roads and associated structures on build, own,
operate and transfer basis.  The Company provides operation and
maintenance of Yamuna Expressway for over 36 years, collection of
toll and the rights for development of approximately 25 million
square meters of land for residential, commercial, institutional,
amusement and industrial purposes at over five land parcels along
the expressway.  The Healthcare business segment includes
hospitals.  The Company has commenced development of its Land
Parcel-1 at Noida, Land Parcel-3 at Mirzapur and Land Parcel-5 at
Agra.

On August 8, 2017, the National Company Law Tribunal (NCLT),
Allahabad bench accepted lender IDBI Bank's plea and classified JIL
as an insolvent company.  With this, the board of directors of the
company remains suspended.

Anuj Jain was appointed as Interim Resolution Professional (IRP) to
manage the company's business.  The IRP had invited bids from
investors interested in acquiring JIL and completing the stuck real
estate projects in Noida and Greater Noida.

In September 2017, the Supreme Court of India stayed the insolvency
proceedings initiated against JIL, after various associations of
homebuyers moved a batch of petitions fearing they will lose their
apartments and not get any compensation, according to Livemint. The
stay was later revoked by the court, which directed the resolution
professional to submit an interim resolution plan that takes into
account the interest of homebuyers.

The court also directed the parent company, JAL, to deposit
INR2,000 crore to protect the interest of homebuyers.  Out of this,
only INR750 crore has been deposited so far, Livemint relayed.

JIL features in the Reserve Bank of India's first list of
non-performing assets accounts and had debt exposure of over
INR9,783 crore as of September 2017.  The parent company, JAL owes
more than INR29,000 crore to various banks, the report added.


KHULLAR HOSPITALITY: Insolvency Resolution Process Case Summary
---------------------------------------------------------------
Debtor: M/s Khullar Hospitality Private Limited
        A-301, 6, Aurangzeb Road
        New Delhi 110011

Insolvency Commencement Date: May 8, 2019

Court: National Company Law Tribunal, New Delhi Bench  II

Estimated date of closure of
insolvency resolution process: November 4, 2019
                               (180 days from commencement)

Insolvency professional: Kamal Agarwal

Interim Resolution
Professional:            Kamal Agarwal
                         487/27 School Road
                         Near Peeragarhi Metro Station
                         New Delhi 110087
                         E-mail: advocate.kamal.aggl@gmail.com
                                 cirp.khullarhospitality@gmail.com

Last date for
submission of claims:    May 27, 2019


RAITANI ENGINEERING: ICRA Maintains B+ Rating in Not Cooperating
----------------------------------------------------------------
ICRA said the rating for the INR37.00 crore bank facilities of
Raitani Engineering Works Private Limited continues to remain in
the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B+ (Stable) ISSUER NOT COOPERATING".

                    Amount
   Facilities     (INR crore)    Ratings
   ----------     -----------    -------
   Fund based-        12.00      [ICRA]B+ (Stable) ISSUER NOT
   Cash Credit                   COOPERATING; Rating continues
                                 to remain in the 'Issuer Not
                                 Cooperating' category

   Non fund based-    25.00      [ICRA]B+ (Stable) ISSUER NOT
   Bank Guarantee                COOPERATING; Rating continues
                                 to remain in the 'Issuer Not
                                 Cooperating' category

The rating is based on no updated information on the entity's
performance since the time it was last rated in July 2016. The
lenders, investors and other market participants are thus advised
to exercise appropriate caution while using this rating as the
rating does not adequately reflect the credit risk profile of the
entity. The entity's credit profile may have changed since the time
it was last reviewed by ICRA; however, in the absence of requisite
information, ICRA is unable to take a definitive rating action.

As part of its process and in accordance with its rating agreement
with Raitani Engineering Works Private Limited, ICRA has been
trying to seek information from the entity so as to monitor its
performance, but despite repeated requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information, and in line with SEBI's Circular No.
SEBI/HO/MIRSD4/CIR/2016/119, dated November 01, 2016, ICRA's Rating
Committee has taken a rating view based on the best available
information.
  
Incorporated in 1992, Raitani Engineering Works Private Limited is
engaged in the civil construction business, which includes
construction of bridge, civil structure, road, developing
infrastructure for laying railway lines etc. in Bihar, West Bengal,
Assam and Uttar Pradesh. It was initially established as a
partnership firm in 1976 by Guwahati-based Raitani family and
subsequently, it was converted into a private limited company.

RAJU CONSTRUCTION: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Raju Construction Co. & Shelters Private Limited
        Flat No. 7, A-6 Maharani Bagh
        New Delhi DL 110065

Insolvency Commencement Date: May 10, 2019

Court: National Company Law Tribunal, Principal Bench, New Delhi

Estimated date of closure of
insolvency resolution process: November 6, 2019

Insolvency professional: Dhiren Shantilal Shah

Interim Resolution
Professional:            Dhiren Shantilal Shah
                         B-102, Bhagirathi Niwas
                         Near Natraj Studio
                         Sir M.V. Road, Andheri (East)
                         Mumbai 400069
                         E-mail: dss@dsshah.in
                                 ip2@dsshah.in

Last date for
submission of claims:    May 28, 2019


RANCHI EXPRESSWAY: ICRA Migrates D Rating to Not Cooperating
------------------------------------------------------------
ICRA has moved the long-term rating for the bank facilities of
Ranchi Expressway Limited (REL) to the 'Issuer Not Cooperating'
category. The rating is now denoted as "[ICRA]D ISSUER NOT
COOPERATING".

                   Amount
   Facilities    (INR crore)    Ratings
   ----------    -----------    -------
   Fund-based-     1,151.60     [ICRA]D ISSUER NOT COOPERATING;
   Term Loan                    Rating moved to 'Issuer Not
                                Cooperating' category

ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.

Ranchi Expressway Limited (REL) has been incorporated in the year
2011 as a special purpose vehicle promoted by Madhucon Infra
Limited (MIL) and Madhucon Projects Limited (MPL) through their
Road BOT (Build, Operate, Transfer) projects holding company
Madhucon Toll Highways Limited (MTHL) to carry out the four-laning
of Ranchi-Jamshedpur Highway section of NH-33 from km 114.000 to km
277.500 in the state of Jharkhand under NHDP Phase III on Design,
Build, Finance, Operate, Transfer (DBFOT) Annuity basis. In January
2019, REL has received termination notice from NHAI and the company
is in process for settlement with NHAI.

SHREE AMBICA: ICRA Withdraws B+ Rating on INR4.25cr Loan
--------------------------------------------------------
ICRA has withdrawn the long-term and the short-term rating assigned
to Shree Ambica Cotton Industries, based on the no-objection
certificate provided by its banker.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Fund based-
   Cash Credit          4.25       [ICRA]B+ (Stable); Withdrawn

   Fund based-
   Term Loan            1.80       [ICRA]B+ (Stable); Withdrawn


Established in December 2014, SACI is engaged in raw cotton ginning
and pressing. The manufacturing facility of the firm is located at
Morbi (Gujarat). The firm has 24 ginning machines and 1 pressing
machine, which enable it to produce ~100 bales per day.

SUPREME OVERSEAS: ICRA Withdraws C+ Rating on INR20cr Loan
----------------------------------------------------------
ICRA has withdrawn the long-term rating of [ICRA]C+ and short-term
rating of [ICRA]A4 outstanding on the INR53.00 crore bank limits of
Supreme Overseas Exports India Private Limited.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long Term-Fund
   Based (Cash
   Credit)              20.0       [ICRA]C+; Withdrawn

   Short Term-fund
   Based                 8.0       [ICRA]A4; Withdrawn

   Short Term-Non-
   fund Based           25.0       [ICRA]A4; Withdrawn

Rationale

The ratings have been withdrawn in accordance with ICRA's policy on
withdrawal and suspension, at the request received from the company
and based on no-objection certificate provided by its lenders.

Key rating drivers

Key Rating drivers has not been captured as the rated instrument(s)
are being withdrawn.

Supreme Overseas Exports India Pvt. Ltd. (Supreme Overseas) is
involved in manufacturing and exporting of finished leather and
leather garments, mainly leather jackets. The company was
incorporated in 1976 by Mr. M.S. Sudhindra the chairman of the
group. It has four units, located in Bangalore with an installed
capacity to produce 1.60 lac leather garments per annum. The
company outsources leather processing to its sister concern - Sura
Leathers Pvt. Ltd which operates tanneries in Ambur, Vellor
District of Tamil Nadu. Supreme Overseas's products are exported to
over 20 countries including Germany, France, Canada, USA, etc.

SURA LEATHERS: ICRA Withdraws D Rating on INR8.50cr Loan
--------------------------------------------------------
ICRA has withdrawn the long-term/short-term rating of [ICRA]D for
the INR18.85-crore fund-based/non-fund based facilities of Sura
Leathers Private Limited.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term-Fund
   Based-Cash Credit    6.50       [ICRA]D; Withdrawn

   Short-term-Fund
   Based-Standby
   Line of Credit       1.50       [ICRA]D; Withdrawn

   Short-term-Fund
   Based-Foreign
   Documentary Bill
   Purchase             1.50       [ICRA]D; Withdrawn

   Short-term-Non
   Fund based-Letter
   of Credit            8.50       [ICRA]D; Withdrawn

   Long-term/Short-
   term Unallocated     0.85       [ICRA]D; Withdrawn

Rationale
The ratings have been withdrawn in accordance with ICRA's policy on
withdrawal and suspension, at the request received from the company
and based on no-objection certificate provided by its lenders.

Key rating drivers

Key Rating drivers has not been captured as the rated instrument(s)
are being withdrawn.

Incorporated in 1992, Sura Leathers Private Limited is involved in
the business of leather tanning and runs a tannery unit located at
Ambur, Vellor District of Tamil Nadu, with a production capacity of
20 million sq. ft. per annum. The company processes raw-leather
into usable finished leather for manufacturing final leather
products such as jackets, hand bags, shoes, belts upholstery etc.
The company also started manufacturing leather shoes, mainly for
exports, from 2007. However, the same has been discontinued from
FY2018, owing to subdued demand. The company has its own effluent
plant for waste treatment. The promoter of the company also owns
Supreme Overseas Exports Private Limited which is involved in
manufacturing and exporting of leather jackets, from its
manufacturing unit in Bangalore. The company undertakes outsourcing
work on job-work basis for Supreme Overseas Exports Private
Limited.



=====================
N E W   Z E A L A N D
=====================

FIBER FRESH: Animal Feed Company Goes Into Receivership
-------------------------------------------------------
Stuff.co.nz reports that a Bay of Plenty animal feed company which
employs about 45 people has gone into receivership.

Fiber Fresh Feeds is based in Reporoa and has developed
high-performance animal feed formulas, predominantly for horse and
calf feed. It sells both within New Zealand, and to Japan,
Australia and the Middle East.

The company has more than 30 years' experience in the field,
receivers from financial advisory firm KordaMentha said in a
statement.

According to Stuff, receivers Brendon Gibson and Natalie Burrett
were appointed on May 17, and hope to sell the business as a going
concern.

"Unfortunately, the business is unable to fund its working capital
needs," Stuff quotes Mr. Gibson as saying. "In the meantime, the
business will continue to sell product through its existing
distribution channels."

The company has about 45 on the staff, the receivers said.



=================
S I N G A P O R E
=================

JAPFA COMFEED: Fitch Affirms BB- LT IDR, Outlook Stable
-------------------------------------------------------
Fitch Ratings has affirmed PT Japfa Comfeed Indonesia Tbk's
Long-Term Issuer Default Rating (IDR) at 'BB-' with a Stable
Outlook. Fitch Ratings Indonesia has also affirmed Japfa's National
Long-Term Rating at 'A+(idn)' with a Stable Outlook. A complete
list of rating actions is at the end of this commentary

The affirmation reflects Japfa's robust operating performance, with
EBITDA of around IDR4.7 trillion and an EBITDAR margin of 13.9% in
2018, higher than Fitch's forecast of IDR3.3 trillion and 9.9%,
respectively. Year-end leverage of 1.3x, measured by net adjusted
debt/adjusted EBITDAR that is proportionately consolidated by
minority stakes in a number of subsidiaries, was also lower than
Fitch's forecast of 2.2x.

'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

Solid Market Position, Financial Profile: Japfa's ratings reflect
its strong domestic market position in the poultry-feed and
poultry-breeding industry, which is underpinned by the company's
vertically integrated operations, extensive national distribution
network and strong supplier relationships. Japfa's scale, based on
EBITDAR, is smaller than that of other international rated protein
companies, but it is the second-largest publicly listed company in
Indonesia's poultry market, where the top two players have about
50% market share.

The ratings also reflect the company's strong financial profile. We
expect leverage of around 2.0x-2.5x over the short- to medium-term
assuming a stable profit margin. Nevertheless, a major industry
supply or demand imbalance or capex that is substantially higher
than our expectations - potentially to expand market share in the
breeding and commercial farming segments - are risks to our
forecasts. Furthermore, Fitch believes Japfa's linkage with its
parent - Japfa Ltd (JL) - is weak, reflective of moderate
ring-fencing at Japfa under its US dollar bond documentation as
well as Indonesian stock exchange regulations that limit
related-party transactions. Therefore, we continue to rate Japfa on
a standalone basis. However, should the company's dividend policy
change or there is other evidence of JL being able to extract cash,
Fitch may review its approach.

Supportive Government Measures: The Indonesian government has taken
an active role in regulating the country's chicken supply. The most
recent intervention occurred in March 2019 when the government
directed the poultry industry to reduce the supply of day-old
chicks after a decline of around 25% in live birds prices over
3M19. Average live bird prices improved in April to about
IDR19,000/kg, up from an average of IDR17,000/kg in 1Q19. We
believe the government will be proactive in taking measures to
maintain the demand-supply balance, as low poultry prices during
times of excess supply could hurt small-scale farmers.

Production Flexibility; Cost Pass-Through: Fitch believes Japfa's
exposure to raw material cost volatility is mitigated by the
company's large drying and storage facilities. Japfa is exposed to
the risk of volatile raw material prices, especially given the
government's import restrictions on corn - a key raw material for
animal feed - which forces the company to rely on domestic
sourcing. Corn harvesting in Indonesia normally takes place only in
the first and third quarters of the year, creating price swings
throughout the year. Fitch believes Japfa's corn dryers allow it to
store dried corn for up to six months, providing production
flexibility during non-harvest periods.

Japfa is also able to mitigate the risk from rising raw-material
costs by passing through cost increases to customers in its key
animal-feed segment. This is due to its strong market position and
ability to retain corn inventory and adjust output. PT Charoen
Pokphand Indonesia Tbk and Japfa together control about half of
Indonesia's poultry-feed market and react similarly to increases in
raw-material costs by seeking to raise prices.

DERIVATION SUMMARY

Japfa's IDR can be compared with that of Pilgrim's Pride
Corporation (PPC, BB/Stable), Marfrig Global Foods S.A.
(BB-/Stable), Minerva S.A. (BB-/Stable) and Agri Business Holding
Miratorg LLC (B/Stable). Fitch believes PPC - one of the largest
global chicken producers, with operations spanning the US, Mexico,
Puerto Rico and Europe - has a superior credit profile relative to
Japfa due to its larger operating scale, stronger global market
position and better geographic diversification. PPC's business and
credit profile is strong for its 'BB' rating category, but
constrained by its weak corporate governance of its ultimate
indirect controlling parent company, Brazil-based JBS S.A.
(BB-/Stable).

Fitch thinks Japfa's smaller operating EBITDAR scale is compensated
by its strong financial profile relative to Marfrig and Minerva.
Japfa's leverage and interest coverage (adjusted EBITDAR/interest
expense + rent) are superior compared with Minerva, while Marfrig's
leverage was three times higher than that of Japfa in 2018,
although we expect it to improve to Japfa's level within the next
three years subject to a successful divestment of a subsidiary. The
three companies have EBITDAR margins of around 10% and similar
negative-to-neutral free cash flow generation, all of which
indicate comparable credit profiles, justifying the same rating
level.

Relative to Miratorg - Russia's largest pork producer with exposure
to poultry and cattle - Fitch believes Japfa's multiple-notch
higher rating is warranted due to Miratorg's significantly weaker
financial profile, weak free cash flow generation and corporate
governance issues, as evident from the company's complex group and
governance structure.

Japfa's National Rating is comparable with that of PT Sri Rejeki
Isman Tbk (Sritex, A+(idn)/Stable), PT Sumber Alfaria Trijaya Tbk
(Alfamart, AA-(idn)/Stable) and PT Mayora Indah Tbk
(AA(idn)/Stable). We believe the larger operating EBITDAR scale,
lower commodity-price exposure and superior financial profile of
Alfamart - Indonesia's largest mini-market operator - warrant a
one-notch difference to Japfa's rating. Similarly, we believe the
stronger financial profile, wider profit margin, better free cash
flow generation and better earning stability of Mayora's - a
leading consumer goods producer in Indonesia - warrant a
multiple-notch rating difference to Japfa.

Sritex and Japfa are both exposed to raw material price volatility,
however, both possess an ability to pass through cost fluctuation
to customers. We believe Japfa's larger operating EBITDAR scale
counterbalances Sritex's better free cash flow generation. Japfa's
stronger market position as Indonesia's second-largest poultry
company also compensates for its weaker geographical
diversification relative to Sritex. We believe this warrants the
same rating for both companies.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Our Rating Case for the Issuer

- Net sales growth of 6.5%-8.0% annually in 2019-2022 (2018: 15%)

- Flat average selling price for the animal feed segment in 2019
and 1% annual growth in 2020-2022 (2018: 3.5% growth)

- EBITDAR margin of around 9% in 2019-2022

- Capex of around IDR2 trillion annually in 2019-2022, equivalent
to around 4%-6% of revenue

YUUZOONOW! PTE: Staff File Claims For Unpaid Salaries
-----------------------------------------------------
The Business Times reports that several former employees of
YuuZooNow! Pte Ltd in Singapore have made claims against the
company for unpaid salaries.

The Business Times (BT) understands that about 10 people may have
registered their claims at the Tripartite Alliance for Dispute
Management (TADM).

Among the claimants is the group's former general counsel and head
of legal who is claiming about SGD37,090, the report says.

[*] SINGAPORE: UK Court Recognizes Law for Debt Restructuring
-------------------------------------------------------------
Asia Business Law Journal reports that the High Court of England
and Wales has recognized Singapore's new moratorium law for
companies unable to pay their creditors. The ruling is positive for
debt workouts across different jurisdictions and a boost to the
city-state's ambition to become Asia's debt restructuring hub, the
report says.

Rajah & Tann Singapore and the London office of US law firm Lord
Locke said the High Court of Justice Business and Property Court of
England and Wales had on March 25, 2019, recognized the moratorium
relief granted by the Singaporean court to their client H&C S
Holdings under section 211B(1) of the Companies Act as foreign main
proceedings under the UNICITRAL Model Law, according to Asia
Business Law Journal.

Asia Business Law Journal relates that this is the first time a
court outside Singapore has recognized section 211B of the
Companies Act, which deals with the enhanced moratorium in relation
to a court-sanctioned arrangement or compromise (known as a scheme
of arrangement) between a company and its creditors when the former
is in distress or insolvent.

The report says the section was introduced by Singapore's
parliament in 2017 as part of a major overhaul of the city-state's
corporate restructuring and insolvency laws. It made it easier for
companies, especially those with creditors from around the world,
to be rescued and rehabilitated.

In a statement Rajah & Tann said the overhaul was also aimed at
attracting debtors and creditors in the region to come to Singapore
for corporate restructuring, Asia Business Law Journal relays.

In the case of H&C S Holdings, the firm's new managing partner,
Patrick Ang, submitted a report to support the Recognition
Application and explained the background of the 2017 Amendment Act
and section 211B.

During the English court hearing, it was noted that this case was
"uncharted territory," there having not been a recognition of this
type of proceedings in a UK court before, according to Asia
Business Law Journal.

Asia Business Law Journal relates that Raja & Tann said ICC Judge
Jones was satisfied with the arguments put forward by counsel
Jennifer Meech of Enterprise Chambers (instructed by David Grant
and Marc Abrahams of Locke Lord), and evidence before him that the
requirements of the British Cross Border Insolvency Regulations
(incorporating the Model Law) had been met. Locke Lord was
instructed by Rajah & Tann Singapore (assisted by partners Chua
Beng Chye and Raelene Pereira).

"This ground-breaking decision is a significant development for
Singapore's debt restructuring and insolvency regime," the report
quotes Mr. Ang as saying. "It addresses previous uncertainties on
whether the English courts would recognize our new moratorium
order, and whether a Singapore scheme of arrangement proceeding is
a 'foreign proceeding' for purposes of UK's cross-border insolvency
regulations."

"This is an important acknowledgment of the doctrine of
universalism of restructuring and insolvency under the UNCITRAL
Model Law. We hope to see more cases of this nature rightly
recognized by the English Court," Mr. Grant, from Locke Lord,
added.



=====================
S O U T H   K O R E A
=====================

HANJIN HEAVY: Shares Resume Trading After Financial Restructuring
-----------------------------------------------------------------
Yonhap News Agency reports that shares in Hanjin Heavy Industries &
Construction Co., a midsized South Korean shipbuilder, resumed
trading on the Seoul bourse May 21 following its financial
restructuring efforts.

Yonhap says Hanjin Heavy's stock trading had been suspended since
February due to capital erosion. According to Yonhap, the shipyard
saw its losses snowballing to KRW1.32 trillion (US$1.15 billion)
last year, from a loss of KRW278 billion a year earlier as it
reflected losses from its ties with its Philippine affiliate, which
received approval for a rehabilitation scheme in January.

The creditors, including the state-run Korea Development Bank, then
accepted a 680 billion-won debt-for-equity swap, as well as other
restructuring efforts, to help the shipbuilder escape from capital
erosion, Yonhap relates.

Despite a slump in the global shipbuilding industry, Hanjin Heavy
said it aims to normalize its business with new projects.

According to the report, Hanjin Heavy is set to sell some of its
property near a port in Incheon that is worth KRW131.4 billion and
build a logistics center after selecting a preferred bidder. The
company is also set to take part in a modernization project for a
Seoul terminal that is estimated around KRW1 trillion.

Yonhap adds that Hanjin Heavy said it will also try to improve
profitability in its shipbuilding business by focusing on making
special-purpose vessels. As of the end of April, the company has
secured 23 orders for special-purpose vessels worth KRW1.6
trillion.

For the construction business, the company said it has so far
secured KRW220 billion worth of orders this year, Yonhap
discloses.

Hanjin Heavy Industries & Construction Co., Ltd. provides
shipbuilding, construction, and plant services in South Korea and
internationally. The company builds commercial ships, such as
container and gas carriers, tankers, bulk carriers, and special
purpose ships; and special ships, including landing platform
helicopters, multi support vessels, landing craft utilities,
landing ship tankers, patrol forces, patrol ship killers, offshore
patrol/salvage vessels, landing ship fast, ice breakers,
hydrographic vessels, fishery research vessels, and oceanographic
vessels.


                           *********


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
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mail.  Additional e-mail subscriptions for members of the same
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thereof are US$25 each.  For subscription information, contact
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                *** End of Transmission ***