/raid1/www/Hosts/bankrupt/TCRAP_Public/190617.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, June 17, 2019, Vol. 22, No. 120
Headlines
A U S T R A L I A
CENTENNIAL MINING: Inks Recapitalization Deal with Avior Consulting
DOUBLEUP HOLDINGS: Second Creditors' Meeting Set for June 20
DRIVEON GROUP: First Creditors' Meeting Set for June 25
FOCUS ON FURNITURE: Second Creditors' Meeting Set for June 20
GASCOYNE RESOURCES: Sorting Out Affairs May Take Up to 6 Months
MESOBLAST LIMITED: Expands License Agreement with JCR in Japan
SELECT FOODS: Second Creditors' Meeting Set for June 21
SWIM LOOPS: Second Creditors' Meeting Set for June 24
SYMBOL MINING: First Creditors' Meeting Set for June 24
TATTS ON TATTS: Goes Into Liquidation, Customers Seek Refund
WHIRLWIND PRINT: Placed In Liquidation with AUD7MM Debts
C H I N A
AIRMEDIA GROUP: Marcum BP Raises Going Concern Doubt
ORIGIN AGRITECH: BDO China Shu Lun Pan Raises Going Concern Doubt
SHARING ECONOMY: Malone Bailey Replaces RBSM as Auditor
SKYFUEL INC: Seeks to Hire Akerman LLP as Counsel
SUNAC CHINA: Fitch Rates $600MM Senior Notes due 2022 Final 'BB'
YINGLI GREEN: PricewaterhouseCoopers Raises Going Concern Doubt
ZHANGZHOU TRANSPORTATION: Fitch Publishes BB+ IDR, Outlook Stable
I N D I A
ACHIEVERS BUILDERS: CRISIL Maintains D Rating in Not Cooperating
ADVANTAGE ORGANIC: CRISIL Maintains D Rating in Not Cooperating
ALLIANCE FIBRES: CRISIL Maintains D Rating in Not Cooperating
ARUPPUKOTTAI SRI: CRISIL Maintains B Rating in Not Cooperating
ARVIND PIPES: ICRA Cuts INR7cr LOC Rating to D, Not Cooperating
BGR MINING: Ind-Ra Lowers Long Term Issuer Rating to 'D'
BRFM INDIA: Ind-Ra Migrates B+ LT Issuer Rating to Non-Cooperating
CONCORD CONSTRUCTION: CRISIL Keeps B+ Rating in Not Cooperating
CROWN PROPBUILD: CRISIL Maintains B+ Rating in Not Cooperating
D.R. DISTRIBUTORS: CRISIL Lowers Rating on INR12cr Loan to B+
DUVET INDUSTRIES: CRISIL Maintains B+ Rating in Not Cooperating
FERRO ALLOYS: ICRA Reaffirms D Rating on INR51.57cr ST Loan
FOMENTO RESOURCES: Ind-Ra Affirms Then Withdraws D Issuer Rating
G. K. INTERNATIONAL: CRISIL Lowers Rating on INR6.5cr Loan to B+
GHELI INTERNATIONAL: Insolvency Resolution Process Case Summary
HI-TECH HYDRAULIC: Ind-Ra Moves B Issuer Rating to Non-Cooperating
JET AIRWAYS: NCLT Adjourns Insolvency Plea to June 20
JYOTI PROCESSORS: Ind-Ra Migrates BB LT Rating to Non-Cooperating
KAMA METAL: CRISIL Cuts INR7.75cr Cash Loan Rating to B+, Not Coop.
KIMAYA INDUSTRIES: CRISIL Lowers Rating on INR11cr Loan to D
LINCOLN INDUSTRIES: CRISIL Maintains B+ Rating in Not Cooperating
M V AGRO: ICRA Maintains D Rating in Not Cooperating Category
MICROSYS POLYMERS: Insolvency Resolution Process Case Summary
NANDI COTTON: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating
PHOENIIX: Ind-Ra Migrates B+ LT Issuer Rating to Non-Cooperating
PUNJAB SWITCHGEARS: Insolvency Resolution Process Case Summary
PURE PETROCHEM: Ind-Ra Migrates 'BB-' LT Rating to Non-Cooperating
SAINEST TUBES: Ind-Ra Migrates 'BB+' LT Rating to Non-Cooperating
SHEKHADA COT-GIN: ICRA Withdraws B+ Rating on INR9.15cr Loans
SHREE VINDHYA CAST: Insolvency Resolution Process Case Summary
SHREE VINDHYA PAPER: Insolvency Resolution Process Case Summary
SOHRAB SPINNING: CRISIL Maintains D Rating in Not Cooperating
SRI VENKATA: ICRA Withdraws 'B+' Rating on INR15cr Loans
THIRU AROORAN: Insolvency Resolution Process Case Summary
TRIPURARI AGRO: Insolvency Resolution Process Case Summary
VANI TOBACCOS: CRISIL Assigns B+ Rating to INR6cr Loan
VVA DEVELOPERS: Insolvency Resolution Process Case Summary
YOUNG INDUSTRIES: CRISIL Raises Rating on INR8cr Loan to B+
[*] INDIA: Tightens Credit Rating Norms After Defaults, Downgrades
M A L A Y S I A
RESORT SAVERS: Needs More Capital to Continue as Going Concern
N E W Z E A L A N D
EBERT CONSTRUCTION: Liquidators Take Action to Claw Back NZ$1.3M
S I N G A P O R E
HYFLUX LTD: Receives LOI from Chinese Power Service Provider
S O U T H K O R E A
SUNGDONG SHIPBUILDING: Nears Bankruptcy as No Eligible Buyers Found
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A U S T R A L I A
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CENTENNIAL MINING: Inks Recapitalization Deal with Avior Consulting
-------------------------------------------------------------------
MiningNews.net reports that Centennial Mining Limited's
administrators from KordaMentha executed a deed of company
arrangement with Perth-based Avior Consulting.
Part of the capital raising proceeds will be used to contribute
AUD3.85 million towards the DOCA for the costs of the
administration and paying creditors, MiningNews.net says.
MiningNews.net relates that Avior, which is run by former Deloitte
partner Dermott McVeigh, said it would work to complete the
recapitalisation as soon as possible.
According to the report, fellow Victorian gold producer AuStar Gold
had been considering recapitalising Centennial via a merger, but
eventually passed on the opportunity.
Centennial called in the administrators in March after its funding
position became too dire to continue trading.
MiningNews.net says the company had around 249,000 ounces in
resources at the 150-year-old A1 gold mine in the Walhalla
goldfield, and it was working on a five-year plan when it
collapsed.
It successfully restarted the A1 plant at Porcupine Flat near
Maldon last August and produced some 7000 ounces for the second
half of the year, generating around AUD12 million in revenue,
MiningNews.net relates.
Centennial Mining Limited (ASX: CTL) --
https://www.centennialmining.com/ -- engages in the exploration and
development of gold projects in Australia. It primarily develops
the A1 Gold Mine located in Eastern Victoria.
Richard Tucker, John Bumbak and Leanne Chesser of KordaMentha Perth
were appointed as administrators of Centennial Mining and
subsidiary and Maldon Resources Pty. Ltd. on March 21, 2019.
DOUBLEUP HOLDINGS: Second Creditors' Meeting Set for June 20
------------------------------------------------------------
A second meeting of creditors in the proceedings of Doubleup
Holdings Pty Ltd and GGA Lifestyle Pty Ltd (trading as Transit
Clothing) has been set for June 20, 2019, at 11:00 a.m. at the
offices of FTI Consulting, at Central Park, Level 47, 152-158 St
Georges Terrace, in Perth, WA.
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 June 19, 2019, at 4:00 p.m.
Daniel Hillston Woodhouse and Ian Charles Francis of FTI Consulting
were appointed as administrators of Doubleup Holdings on May 15,
2019.
DRIVEON GROUP: First Creditors' Meeting Set for June 25
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Driveon
Group Pty Ltd will be held on June 25, 2019, at 11:00 a.m. at the
offices of Farnsworth Shepard, at Level 5, 2 Barrack Street, in
Sydney, NSW.
Adam Shepard of Farnsworth Shepard was appointed as administrator
of Driveon Group on June 13, 2019.
FOCUS ON FURNITURE: Second Creditors' Meeting Set for June 20
-------------------------------------------------------------
A second meeting of creditors in the proceedings of:
-- Focus on Furniture Pty Ltd;
-- Beds Online Australia Pty Limited;
-- Best Furniture Group Pty Limited;
-- D. Gallery Pty Limited;
-- E-Commerce Ventures Pty Limited;
-- Furniture Online Australia Pty Ltd;
-- LoveADeal Pty Ltd;
-- Oz Retail Pty Ltd;
-- Pacific Global Furniture Pty Limited;
-- Pillows Online Australia Pty Limited;
-- Trusted Web Sites Pty Ltd; and
-- United Furniture Warehouse Pty Ltd
has been set for June 20, 2019, at 2:00 p.m. at The Pendlebury
Room, Wesley Conference Centre, 220 Pitt Street, in Sydney with
video and conferencing facilities available at the offices of
Cliftons Melbourne, Level 1, at 440 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 June 19, 2019, at 2:00 p.m.
Katherine Sozou, Barry Kogan and Matthew Caddy at McGrathnicol were
appointed as administrators of Focus on Furniture on
May 15, 2019.
GASCOYNE RESOURCES: Sorting Out Affairs May Take Up to 6 Months
---------------------------------------------------------------
Stuart McKinnon at The West Australian reports that administrators
for Gascoyne Resources said it could take up to six months for the
fate of the collapsed gold miner to play out.
Speaking at the first meeting of creditors on June 12 after the
company's collapse earlier this month, FTI Consulting joint
administrator Ian Francis said he hoped to have a clearer picture
of the company's position by the end of the month, the report
relates.
He said Gascoyne would be under administration for two to six
months, depending on a technical review of the company's main
Dalgaranga operation near Mt Magnet and its trading performance,
according to The West Australian.
"We understand that there is a cost associated with this process,
we understand that creditors are out of pocket and looking for a
successful outcome," the report quotes Mr. Francis as saying.
"Unfortunately, given the circumstances of the company, the
historical position and where we're at the moment, this will take a
bit of time.
"Obviously from a trading performance perspective, reliability
needs to be proven."
The West Australian says lenders NAB and Commonwealth Bank,
contractor NRW Holdings, suppliers and Gascoyne employees support
Dalgaranga's continued operation while FTI works to sort out the
failed company's affairs.
Mr. Francis noted the banks retained the right to appoint receivers
to the company at any time and for whatever reason, the report
relays.
The West Australian relates that the administrators are hopeful of
operating Dalgaranga at break even on a cash basis while the
company's future is resolved.
According to The West Australian, FTI has appointed geo-technical
advisers Mining One to implement a near-term mine plan to
transition Dalgaranga to cashflow positive.
The work would focus on opening the main area of the Gilbeys ore
body with the aim of improving mined grades and lowering strip
ratios, the report relates.
The West Australian adds that FTI's Andrew Bantock said it would
take time for Mining One to revise Dalgaranga's resource modelling,
recalculate its reserves and develop a revised, optimised mine
plan.
He noted FTI had received "unsolicited approaches in relation to
the business which we're engaging with".
The West Australian relates that Mr. Francis said FTI would appoint
an M&A adviser to examine bridging debt options, funding from the
market and the possible divestment of assets.
At stake is AUD87 million in secured debt owed to NAB and
Commonwealth, AUD12 million in secured debt owed to NRW and AUD25.3
million in unsecured debt owed mainly to NRW, says The West
Australian.
About Gascoyne Resources
Gascoyne Resources Limited is a mineral exploration and development
company. The Company is engaged in the exploration for gold and
evaluation of the development options for its Australian gold
projects. The Company holds mining leases and exploration licenses
and applications totaling approximately 4,000 square kilometers in
the Gascoyne and Murchison regions of Western Australia. Its
Dalgaranga gold project is located approximately 70 kilometers
Northwest of Mt Magnet in the Murchison gold mining region of
Western Australia. Its Glenburgh gold project is located in the
Southern Gascoyne Province of Western Australia approximately 250
kilometers east of Carnarvon. The Glenburgh gold project consists
of a gold mineralized system hosted in interpreted remnants of
Archaean terrain in a Proterozoic mobile belt. Its Egerton project
consists of approximately two granted mining leases and over three
granted exploration licenses.
The company employs 87 staff at Dalgaranga and 15 at its head
office in Perth.
As reported in the Troubled Company Reporter-Asia Pacific on
June 4, 2019, Australian Mining said Gascoyne Resources has moved
into administration due to an expected material cash shortfall over
the coming months. The announcement was made via FTI Consulting,
which revealed that Michael Ryan, Kathryn Warwick and Ian Francis
will assume the role as voluntary administrators.
MESOBLAST LIMITED: Expands License Agreement with JCR in Japan
--------------------------------------------------------------
Mesoblast Limited has expanded its partnership with JCR
Pharmaceuticals Co. Ltd. in Japan to the use of mesenchymal stem
cells (MSCs) for the treatment of newborns who lack sufficient
blood supply and oxygen to the brain, a condition termed neonatal
hypoxic ischemic encephalopathy (HIE).
HIE occurs in 2.5 per 1,000 live births and can cause seizures,
delayed development of motor skills and cognitive function, and
cerebral palsy. In preclinical studies, MSCs have been shown to
have a significant positive effect on neurobehavioral outcome
following HIE injury3.
JCR is marketing the allogeneic MSC product TEMCELL4 HS Inj. for
the treatment of steroid-refractory acute graft versus host disease
(aGVHD) in children and adults in Japan. Under the terms of the
partnership, Mesoblast receives royalties on TEMCELL product sales
for all licensed indications. The license agreement was previously
expanded for use in wound healing in patients with Epidermolysis
Bullosa (EB), and JCR filed to extend marketing approval of TEMCELL
in Japan for this indication in March 2019.
The license agreement has now been further expanded to provide JCR
with rights to sell TEMCELL for HIE and to access Mesoblast's broad
patent portfolio for this indication. JCR plans to initiate a
clinical trial of TEMCELL in newborns with HIE in July 2019 in
order to further extend the label in this indication.
Mesoblast has the right to use all safety and efficacy data
generated by JCR in Japan to support its development and
commercialization plans for its MSC product candidate remestemcel-L
in the United States and other major healthcare markets, including
for GVHD, wound healing, and now HIE. In the United States there
are approximately 6,000 new patients annually with moderate-severe
HIE2 who could potentially benefit from treatment with
remestemcel-L.
Mesoblast Chief Executive Dr Silviu Itescu stated: "We are pleased
with the strategy by our partner to expand TEMCELL marketing
approval for indications beyond aGVHD. This supports our own
strategic growth plans for our MSC product candidate remestemcel-L
beyond aGVHD in children, including other pediatric indications
such as HIE and adult conditions such as aGVHD, chronic GVHD,
biologic-refractory Crohn's disease, and osteoarthritis."
Mesoblast recently initiated a rolling Biologics License
Application to the U.S Food and Drug Administration for
remestemcel-L, its proprietary MSC product candidate, in the
treatment of children with aGVHD.
About Mesoblast
Headquartered in Melbourne, Australia, Mesoblast Limited (ASX:MSB;
Nasdaq:MESO) --
http://www.mesoblast.com-- is a global developer of innovative
cell-based medicines. The Company has leveraged its proprietary
technology platform to establish a broad portfolio of late-stage
product candidates with three product candidates in Phase 3 trials
- acute graft versus host disease, chronic heart failure and
chronic low back pain due to degenerative disc disease. Through a
proprietary process, Mesoblast selects rare mesenchymal lineage
precursor and stem cells from the bone marrow of healthy adults and
creates master cell banks, which can be industrially expanded to
produce thousands of doses from each donor that meet stringent
release criteria, have lot to lot consistency, and can be used
off-the-shelf without the need for tissue matching. Mesoblast has
facilities in Melbourne, New York, Singapore and Texas and is
listed on the Australian Securities Exchange (MSB) and on the
Nasdaq (MESO).
Mesoblast reported a net loss attributable to the owners of
Mesoblast of US$35.29 million for the year ended June 30, 2018,
compared to a net loss attributable to the owners of Mesoblast of
US$76.81 million for the year ended June 30, 2017.
As of March 31, 2019, Mesoblast had $675.7 million in total assets,
$174.8 million in total liabilities, and $500.9 million in total
equity.
PricewaterhouseCoopers, in Melbourne, Australia, the Company's
auditor since 2008, issued a "going concern" opinion in its report
on the consolidated financial statements for the year ended June
30, 2018. The auditors noted that the Company has suffered
recurring losses from operations that raise substantial doubt about
its ability to continue as a going concern.
SELECT FOODS: Second Creditors' Meeting Set for June 21
-------------------------------------------------------
A second meeting of creditors in the proceedings of Select Foods
Pty. Limited and Select Foods Manufacturing Pty Limited has been
set for June 21, 2019, at 11:00 a.m. at the offices of PKF, Level
8, 1 O'Connell 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 June 19, 2019, at 4:00 p.m.
Bradley John Tonks of PKF was appointed as administrator of Select
Foods on May 16, 2019.
SWIM LOOPS: Second Creditors' Meeting Set for June 24
-----------------------------------------------------
A second meeting of creditors in the proceedings of Swim Loops Pty.
Ltd has been set for June 24, 2019, at 2:00 p.m. at Level 5, 140
Bundall Road, in Bundall, 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 June 21, 2019, at 4:00 p.m.
Glenn Thomas O'Kearney of GT Advisory & Consulting was appointed as
administrator of Swim Loops on May 20, 2019.
SYMBOL MINING: First Creditors' Meeting Set for June 24
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Symbol
Mining Limited will be held on June 24, 2019, at 11:00 a.m. at the
offices of Pitcher Partners, at Level 11, 12-14 The Esplanade, in
Perth, WA.
Bryan Kevin Hughes and Daniel Johannes Bredenkamp of Pitcher
Partners were appointed as administrators of Symbol Mining on June
12, 2019.
TATTS ON TATTS: Goes Into Liquidation, Customers Seek Refund
------------------------------------------------------------
Andrew Brown at The Canberra Times reports that more than 100
Canberrans are chasing refunds and some have half-finished tattoos,
after the liquidation of a popular ACT tattoo studio.
The Gungahlin-based Tatts On Tatts Off Pty Ltd went into
liquidation on April 15, after closing without notice to its many
clients, the report says.
Documents seen by The Canberra Times reveal 116 creditors are
seeking refunds, mostly for tattoo deposits, with the company owing
more than AUD22,000.
The sole director of Tatts On Tatts Off, Peter Bone, is also the
founder of Survivors Ink, a non-profit charity helping create
tattoo realistic nipples for breast cancer survivors that have had
their breasts removed due to cancer treatment, the report
discloses.
WHIRLWIND PRINT: Placed In Liquidation with AUD7MM Debts
--------------------------------------------------------
Wayne Robinson at Print21 reports that Whirlwind Print went down
with debts of AUD7 million, with employees and paper merchants, or
their insurers, taking the biggest hits.
According to the report, Whirlwind has little in the way of cash or
assets, its equipment was sold in bank-authorised deal prior to its
collapse, and its outstanding invoices are mainly factored, meaning
at most only 20 per cent of the value will come back to the
liquidator .
Apart from staff entitlements, Whirlwind's Victoria operation went
down with AUD3.4 million owed to creditors, while the NSW business,
originally Lindsay Yates that Whirlwind bought in October 2017 and
cited as one of the main causes of the collapse, owes AUD1.4
million to its suppliers, Print21 says.
Print21 relates that staff entitlements outstanding are the biggest
creditor, with AUD2.39 million owed to the 120 staff, a figure
which is likely to be picked up by the taxpayer through the
government's Fegs scheme. One employee is owed AUD78,000.
Direct Paper is in for AUD1.3 million, while fellow merchant Ball &
Doggett is owed AUD1.25 million, the report says. They will be
insured, but the paper industry is increasingly concerned about
getting insurance, given the significant hits insurers have taken
around the country, Print21 states. In Perth the insurers of paper
merchants who supplied Picton Press are looking at getting between
1c and 2c in the dollar for their debts under the company's
controversial Deed of Company Arrangement, meaning a AUD500,000
debt will see at most AUD10,000 recovered, Print21 notes.
If insurers withdraw it may well mean printers being asked to pay
COD for paper, or 14 days, or at most having 30 day terms, any of
which would likely impact the cash flow of many businesses, notes
the report.
Among other Whirlwind creditors, Agfa is owed AUD270,000, Print &
Pack AUD130,000, Jet Technologies AUD100,000, Express Envelopes
AUD80,000, Neopost AUD55,000 and DIC AUD50,000, Print21 adds.
Whirlwind Print is a trade and commercial printer based in
Australia.
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C H I N A
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AIRMEDIA GROUP: Marcum BP Raises Going Concern Doubt
----------------------------------------------------
AirMedia Group Inc. filed with the U.S. Securities and Exchange
Commission its annual report on Form 20-F, disclosing a net loss of
$93,419,000 on $24,546,000 of net revenues for the year ended Dec.
31, 2018, compared to a net loss of $179,181,000 on $23,759,000 of
net revenues for the year ended in 2017.
The audit report of Marcum Bernstein & Pinchuk llp states that the
Company has a significant working capital deficiency, has incurred
significant losses and needs to raise additional funds to meet its
obligations and sustain its operations. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
The Company's balance sheet at Dec. 31, 2018, showed total assets
of $129,816,000, total liabilities of $115,417,000, and $14,399,000
in total equity.
A copy of the Form 20-F is available at:
https://is.gd/ehXFsd
AirMedia Group Inc. operates out-of-home advertising platforms in
the People's Republic of China. The company operates a network of
digital (television) TV screens on planes operated by 7 airlines;
and gas station media network, as well as other outdoor media
advertising platforms in gas stations. AirMedia Group Inc. was
founded in 2005 and is headquartered in Beijing, the People's
Republic of China.
ORIGIN AGRITECH: BDO China Shu Lun Pan Raises Going Concern Doubt
-----------------------------------------------------------------
Origin Agritech Limited filed with the U.S. Securities and Exchange
Commission its annual report on Form 20-F, disclosing a net loss of
RMB152,790,000 on RMB12,927,000 of revenues for the year ended Sep.
30, 2018, compared to a net loss of RMB106,261,000 on RMB870,000 of
revenues for the year ended in 2017.
The audit report of BDO China Shu Lun Pan Certified Public
Accountants LLP states that the Company has suffered recurring
losses from operations and has a net capital deficiency that raise
substantial doubt about its ability to continue as a going
concern.
The Company's balance sheet at Sep. 30, 2018, showed total assets
of RMB430,101,000, total liabilities of RMB453,449,000, and
RMB23,348,000 in total deficit.
A copy of the Form 20-F is available at:
https://is.gd/fyelww
Origin Agritech Limited, through its subsidiaries, operates an
agricultural biotechnology and an e-commerce platform primarily in
the People's Republic of China. The company engages in crop seed
breeding and genetic improvement activities. It develops, produces,
and distributes hybrid crop seeds, as well as hybrid seed
technology. The company also operates an e-commerce platform, which
delivers agricultural products comprising agricultural seed
products, other agricultural inputs, foods, household products, and
other consumer products to farmers through online and mobile
ordering. Origin Agritech Limited was founded in 1997 and is
headquartered in Beijing, China.
SHARING ECONOMY: Malone Bailey Replaces RBSM as Auditor
-------------------------------------------------------
Sharing Economy International, Inc., received on June 5, 2019, a
letter from RBSM LLP confirming that RBSM will no longer serve as
the Company's auditor. On June 10, 2019, the Company engaged
Malone Bailey LLP to serve as the Company's new independent
registered public accounting firm. The decision to appoint Malone
Bailey was unanimously approved by the Company's Board of
Directors.
The Company said the change was not made due to any disagreements
with RBSM. RBSM's audit reports on the Company's consolidated
financial statements for the fiscal years ended Dec. 31, 2017 and
2018 did not contain an adverse opinion or a disclaimer of opinion,
nor were those reports qualified or modified as to uncertainty,
audit scope, or accounting principles, except as discussed in Note
1 to the Company's financial statements on Form 10-K, the Company
has suffered recurring losses from operations, generated negative
cash flows from operating activities, has an accumulated deficit
that raise substantial doubt exists about Company's ability to
continue as a going concern.
During the fiscal years ended Dec. 31, 2017 and 2018 and the
subsequent interim period through June 5, 2019, there were no (i)
disagreements between the Company and RBSM on any matter of
accounting principles or practices, financial statement
disclosure,
or auditing scope or procedure.
During each of the fiscal years ended Dec. 31, 2017 and 2018, and
the subsequent period prior to the Company's engagement of Malone
Bailey, neither the Company nor anyone on the Company's behalf
consulted Malone Bailey regarding either (i) the application of
accounting principles to a specified transaction, either completed
or proposed; or the type of audit opinion that might be rendered on
the Company's financial statements, and neither a written report
nor oral advice was provided to the Company that Malone Bailey
concluded was an important factor considered by the Company in
reaching a decision as to any accounting, auditing, or financial
reporting issue, (ii) any matter that was the subject of
disagreement (as defined in Item 304(a)(1)(iv) of Regulation S-K
and related instructions) or a reportable event (as defined in Item
304(a)(1)(v) of Regulation S-K).
About Sharing Economy
Headquartered in Jiangsu Province, China, Sharing Economy
International Inc. --
http://www.seii.com/-- is engaged in the manufacture and sales of
textile dyeing and finishing machines and sharing economy
businesses. Given the headwinds affecting its manufacturing
business, Sharing Economy continued to pursue what it believes are
high growth opportunities for the Company, particularly its new
business divisions focused on the development of sharing economy
platforms and related rental businesses within the company. These
initiatives are still in an early stage and are dependent in large
part on availability of capital to fund their future growth. The
Company did not generate significant revenues from its sharing
economy business initiatives in 2018.
Sharing Economy reported a net loss of $42.08 million for the year
ended Dec. 31, 2018, compared to a net loss of $12.92 million for
the year ended Dec. 31, 2017. As of Dec. 31, 2018, Sharing Economy
had $46.34 million in total assets, $10.90 million in total
liabilities, and $35.43 million in total stockholders' equity.
RBSM LLP, New York, the Company's auditor since 2012, issued a
"going concern" qualification in its report dated April 16, 2019,
on the Company's consolidated financial statements for the year
ended Dec. 31, 2018, citing that the Company has suffered recurring
losses from operations, generated negative cash flows from
operating activities, has an accumulated deficit that raise
substantial doubt exists about Company's ability to continue as a
going concern.
SKYFUEL INC: Seeks to Hire Akerman LLP as Counsel
-------------------------------------------------
Skyfuel, Inc., seeks authority from the U.S. Bankruptcy Court for
the District of Colorado to employ Akerman LLP as counsel to the
Debtor.
The Debtor previously hired Wadsworth Garber Warner Conrardy, P.C.
as counsel.
Skyfuel, Inc. requires Akerman LLP to:
a. advise the Debtor with respect to its powers and duties as
a debtor-in-possession in the continued operation of its
business;
b. advise the Debtor with respect to all general bankruptcy
matters;
c. prepare, on behalf of the Debtor, all necessary motions,
applications, answers, orders, reports, and papers in
connection with the administration of its estate;
d. represent the Debtor at all critical hearings on matters
relating to its affairs and interests as debtor-in-
possession before this Court, any appellate courts, and the
U.S. Supreme Court, and protect the interests of the
Debtor;
e. prosecute and defend litigated matters that may arise
during the bankruptcy case, including such matters as may
be necessary for the protection of the rights, the
preservation of the estate's assets, or the Debtor's
successful reorganization;
f. negotiate appropriate transactions and preparing any
necessary documentation related thereto;
g. represent the Debtor on matters relating to the assumption
or rejection of executory contracts and unexpired leases;
h. advise the Debtor with respect to general corporate
securities, real estate, litigation, environmental, labor,
regulatory, tax, healthcare, and other legal matters which
may arise during the pendency of this Chapter 11 Case; and
i. perform all other legal services that are necessary for the
efficient and economic administration of these cases.
Akerman LLP will be paid at these hourly rates:
David W. Parham, Esq., Partner $650
Amy M. Leitch, Esq., Partner $360
Melissa L. Cizmorris, Esq., Associate $285
Jennifer Meehan, Paralegal $250
Akerman LLP will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Amy M. Leitch, partner of Akerman LLP, assured the Court that the
firm is a "disinterested person" as the term is defined in Section
101(14) of the Bankruptcy Code and does not represent any interest
adverse to the Debtor and its estates.
Akerman LLP can be reached at:
Amy M. Leitch, Esq.
AKERMAN LLP
50 North Laura Street, Suite 3100
Jacksonville, FL 32202
Tel: (904) 798-3700
Fax: (904) 798-3730
E-mail: amy.leitch@akerman.com
About Skyfuel Inc.
Founded in 2007, Skyfuel, Inc. -- http://www.skyfuel.com/--
designs, manufactures and deploys complete solar field solutions
featuring the SkyTrough and SkyTroughDSP parabolic trough
concentrating solar collectors. SkyFuel is the solar thermal
technology arm of the Sunshine Kaidi New Energy Group Co., Ltd.
(Kaidi), a multi-billion dollar energy company based in Wuhan,
China.
An involuntary Chapter 11 petition for relief against SkyFuel, Inc.
(Bankr. D. Colo. Case No. 19-12400) was filed on March 29, 2019.
The court entered an order for relief on April 23, 2019. The
Debtor hired Wadsworth Garber Warner Conrardy, P.C., as counsel and
was substituted by Akerman LLP.
SUNAC CHINA: Fitch Rates $600MM Senior Notes due 2022 Final 'BB'
----------------------------------------------------------------
Fitch Ratings has assigned Sunac China Holdings Limited's
(BB/Stable) USD600 million 7.25% senior notes due 2022 a final
rating of 'BB'.
The notes are rated at the same level as Sunac's senior unsecured
rating because they constitute its direct and senior unsecured
obligations. The final rating follows the receipt of final
documentation conforming to information already received, and is in
line with the expected rating assigned on June 10, 2019.
Sunac's rating reflects Fitch's assessment that leverage, as
measured by net debt/adjusted inventory with proportional
consolidation of joint ventures and associates, will stay below 40%
for a sustained period. Sunac has publicly committed to deleverage
and Fitch believes it will not aggressively make land acquisitions
or large investments in other businesses. Its large attributable
land bank of more than 113 million square metres (sq m) of saleable
gross floor area is well-diversified across various regions in
China. This should support contracted sales increasing.
KEY RATING DRIVERS
Improving Leverage: Fitch expects Sunac to continue deleveraging in
2019 in the absence of large land acquisitions, despite moderating
contracted sales growth on weaker industry sentiment. Sunac's
leverage fell to 38.5% in 2018, from 47.3% in 2017, due to minimal
land bank additions and strong cash generated from contracted
sales. Its 2018 attributable contracted sales increased by 23% to
CNY326 billion, while its total contracted sales reached CNY461
billion, above its full-year sales target of CNY450 billion.
Diversified Land Bank: Sunac's land bank is diversified across
China, including northern China, the Beijing area, Yangtze River
Delta, south-west China and south-east China. It also has a
presence in central China and the Guangdong and Hainan provinces.
Up to 85% of Sunac's land bank, based on saleable value, is
situated in Tier 1 and 2 cities, where pent-up demand is more
robust than in lower-tier cities. The remaining land bank is in
strong Tier 3 cities. Geographical diversification helps offset
local policy restrictions as each local government implements
different home-purchase limits.
Strong Sales, Lower Costs: Fitch forecasts Sunac's average selling
price (ASP) to be around CNY14,000-14,500/sq m in the next few
years. The company's total contracted sales increased by 12% to
CNY163 billion in 5M19, with its ASP maintained at around
CNY14,530/sq m. Sunac's strong sales performance is due to its
focus on higher-tier cities and geographical spread, which
mitigates shocks from specific regions. Its attributable contracted
sales are comparable with other large Chinese homebuilders,
including China Vanke Co., Ltd. (BBB+/Stable) and Poly Developments
and Holdings Group Co., Ltd. (BBB+/Stable).
Sunac's large scale also allows it to trim construction costs,
leading to a strong EBITDA margin - including the proportional
share of EBITDA from joint ventures and associates - of around 24%
in 2018, or 33% if valuation gains from acquired projects are
removed from costs of goods sold (COGS). Fitch expects an EBITDA
margin, including valuation gains in COGS, of around 25% in the
medium term.
Higher Non-Development Contribution: Fitch forecasts Sunac to spend
CNY15 billion-21 billion a year in 2019 and 2020 to ramp up its
property management, rental and decoration businesses as well as
the Wanda City cultural and tourism business it acquired in 2017.
Fitch expects the projects to be fully funded by the sale of nearby
properties. The expansion of these businesses improved revenue
contribution from Sunac's non-development business to CNY7.0
billion in 2018, from CNY3.3 billion in 2017, with its gross margin
also strengthening to 54%, from 44%. The acquisition of the Wanda
City business and retention of its operational and management team
provides Sunac with operational control of the project, mitigating
execution risk.
DERIVATION SUMMARY
Sunac's homebuilding attributable sales scale and geographical
diversification is comparable with that of large 'BBB' rated
homebuilders, such as Vanke and Poly, and is comparable with or
superior to Longfor Group Holdings Limited (BBB/Stable) and Shimao
Property Holdings Limited (BBB-/Stable).
Country Garden Holdings Co. Ltd. (BBB-/Stable) has larger
attributable scale and geographic coverage than Sunac. However,
Country Garden's land bank is more concentrated in low-tier cities,
where demand is susceptible to negative sentiment, while the
majority of Sunac's land bank is in Tier 1 and 2 cities, as
reflected in Sunac's higher margin.
However, Sunac's financial profile is more volatile than that of
investment-grade peers. Its leverage forecast for Sunac of around
35%-40% is more comparable with 'BB' rated issuers, like Sino-Ocean
Group Holding Limited (BBB-/Stable; standalone credit profile:
bb+), Future Land Development Holdings Limited (BB/Stable) and its
subsidiary, Seazen Holdings Co., Ltd. (BB/Stable), CIFI Holdings
(Group) Co. Ltd. (BB/Stable) and China Aoyuan Group Limited
(BB-/Positive).
Sunac's leverage is lower than China Evergrande Group's
(B+/Positive) 42% as of end-June 2018 and Sunac has a significantly
lower payables/inventory ratio.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer:
- Land bank replenishment to maintain a land bank life of 4.5
years in 2020, from 5.0 years in 2018
- Capex of CNY15 billion-21 billion a year in 2019 and 2020
- Contracted gross floor area to increase by 5%
- Contracted ASP of around CNY14,000-14,500/sq m
- EBITDA margin, excluding the effect of revaluation of acquired
projects from COGS, maintained at 25%-30%
RATING SENSITIVITIES
Developments that May, Individually or Collectively, Lead to
Positive Rating Action
- Net debt/adjusted inventory below 30% (2018: 38%) for a
sustained period
- EBITDA margin, excluding the effect of revaluation of acquired
projects from COGS, sustained above 25% (2018: 24%)
Developments that May, Individually or Collectively, Lead to
Negative Rating Action
- Net debt/adjusted inventory above 40% for a sustained period
- Attributable contracted sales/gross debt below 1.2x (2018:
1.3x)
- EBITDA margin, excluding the effect of revaluation of acquired
projects from COGS, below 20% for a sustained period
- Change in management strategy to refocus on aggressive
acquisitions, away from Sunac's stated objective to reduce its
leverage ratio
LIQUIDITY
Sufficient Liquidity: Fitch expects Sunac to maintain sufficient
liquidity for its operations and debt repayment, as contracted
sales reached CNY326 billion on an attributable basis in 2018.
Sunac had a cash balance of CNY120 billion, including restricted
cash of CNY44 billion, sufficient to cover short-term debt of CNY92
billion. Sunac raised USD1.9 billion in offshore senior notes in
2018 and a further USD2.95 billion so far in 2019, including this
issuance.
YINGLI GREEN: PricewaterhouseCoopers Raises Going Concern Doubt
---------------------------------------------------------------
Yingli Green Energy Holding Company Limited filed with the U.S.
Securities and Exchange Commission its annual report on Form 20-F,
disclosing a net loss of RMB1,654,240,000 on RMB4,456,215,000 of
total net revenues for the year ended Dec. 31, 2018, compared to a
net loss of RMB3,450,858,000 on RMB8,363,724,000 of total net
revenues for the year ended in 2017.
The audit report of PricewaterhouseCoopers Zhong Tian LLP states
that facts and circumstances including accumulated deficits and
recurring losses from operations, negative working capital,
uncertainties regarding the repayment of financing obligations and
progress of debt restructuring plan raise substantial doubt about
the Company's ability to continue as a going concern.
The Company's balance sheet at Dec. 31, 2018, showed total assets
of RMB8,608,094,000, total liabilities of RMB20,924,883,000, and
RMB12,316,789,000 in total shareholders' deficit.
A copy of the Form 20-F is available at:
https://is.gd/dGvZ8M
Yingli Green Energy Holding Company Limited, together with its
subsidiaries, designs, develops, manufactures, assembles, sells,
and installs photovoltaic (PV) products. The company offers
polysilicon ingots and blocks, polysilicon wafers, PV cells, PV
modules, and integrated PV systems; and develops and operates solar
projects. It is also involved in the research, manufacture, sale,
and installation of renewable energy products; marketing and sale
of PV products and related accessories; and import and export
trading activities, as well as invests in renewable energy
projects. The company primarily sells its PV modules to
distributors, wholesalers, power plant developers and operators,
and PV system integrators under the Yingli and Yingli Solar brands
in the People's Republic of China, Japan, India, the United States,
England, Turkey, France, Germany, England, and internationally.
Yingli Green Energy Holding Company Limited was founded in 1998 and
is headquartered in Baoding, the People's Republic of China.
ZHANGZHOU TRANSPORTATION: Fitch Publishes BB+ IDR, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has published China-based Zhangzhou Transportation
Development Group Co., Ltd.'s first-time Long-Term Foreign- and
Local-Currency Issuer Default Ratings of 'BB+'. The Outlook is
Stable. Concurrently, Fitch has assigned ZTDG's proposed US-dollar
senior unsecured notes an expected rating of 'BB+(EXP)'.
The proposed notes will be directly issued by ZTDG, which will
constitute its direct, unconditional, unsubordinated and unsecured
obligations and will at all times rank pari passu with all its
other present and future unsecured and unsubordinated obligations.
Proceeds will be used for refinancing and general corporate
purposes. The final rating on the proposed bonds is contingent on
the receipt of final documents conforming to information already
reviewed.
The ratings on ZTDG are assessed under Fitch's Government-Related
Entities (GRE) Rating Criteria, and they reflect the entity's full
state ownership, 'Very Strong' government control, 'Strong'
government support record, and the 'Moderate' socio-political
implications and 'Strong' financial implications on the government
if the company defaults.
ZTDG was established in 2011 and is the major GRE in Zhangzhou
city. It is responsible for developing the city's toll roads,
railways, bus operations and urban infrastructure construction.
KEY RATING DRIVERS
'Very Strong' Status, Ownership and Control: ZTDG is wholly owned
by the Zhangzhou municipal government through Zhangzhou State-owned
Assets Supervision and Administration Commission. The government
appoints its board members, approves its major decisions and
controls its operational and financing activities. Major events,
including strategic development, acquisitions, disposals, long-term
plans, major capex and funding plans, require government approval.
'Strong' Support Record: ZTDG has a solid government support record
as the city's major GRE. It has received around CNY8 billion in
asset and capital injections from the government since inception,
which represents around 25% of its total assets. It has also
received government subsidies of CNY205 million in 2018, CNY369
million in 2017 and CNY148 million in 2016.
'Moderate' Socio-Political Implications: ZTDG has an important role
in Zhangzhou's bus operations as well as railway, toll road and
urban infrastructure construction. A default by the company may not
disrupt immediately its business activities and would have a
moderate socio-political impact on the municipal government.
'Strong' Financial Implications: ZTDG has received substantial
borrowings from banks and the onshore debt markets in the previous
few years. A financial default by ZTDG would damage the
government's reputation and affect funding for other enterprises
owned by the municipal government. The government has a strong
incentive to avoid the company's default.
Standalone Credit Profile 'b' Category: ZTDG's standalone credit
profile is constrained by high leverage, with net debt/EBITDA of
around 16x at end-2018. Fitch expects the leverage to be maintained
at a similar level in the next two to three years. The weak credit
profile is mitigated by its strategic links with the government,
which may provide the financial support to the company.
RATING SENSITIVITIES
ZTDG's ratings could change if Fitch revises its perception of
Zhangzhou municipality's ability to provide subsidies, grants or
other legitimate resources allowed under the policies and
regulations.
Positive rating action could also be triggered by a revised
assessment of socio-political and financial implications of a
default, enhancing the government's incentive to provide legitimate
support. A downgrade could be triggered by a weakening of the
socio-political and financial implications of a default, a weaker
support record and expectation from the government, or a dilution
of the government's shareholding.
An improvement of ZTDG's standalone credit profile could also
affect its ratings.
Any change in ZTDG's IDR will result in a similar change in the
rating of the proposed notes.
=========
I N D I A
=========
ACHIEVERS BUILDERS: CRISIL Maintains D Rating in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Achievers Builders
Private Limited (ABPL) continue to be 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 21.82 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with ABPL for obtaining
information through letters and emails dated November 30, 2018 and
May 13, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of ABPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ABPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of ABPL continues to be 'CRISIL D Issuer not
cooperating'.
Incorporated in March 1999 and promoted by Mr. J L Bhatia and Mr.
Vijay Bhardwaj and their family members, ABPL undertakes real
estate development in Faridabad.
ADVANTAGE ORGANIC: CRISIL Maintains D Rating in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Advantage Organic
Naturals Technologies Private Limited (AONTPL) continue to be
'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL D (ISSUER NOT
COOPERATING)
Long Term Loan 10 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 1.8 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with AONTPL for obtaining
information through letters and emails dated November 30, 2018 and
May 13, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of AONTPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on AONTPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of AONTPL continues to be 'CRISIL D Issuer not
cooperating'.
AONTPL was incorporated in 2007 as a private limited company by New
Delhi based Sachdev family. AONTPL is engaged in setting up of unit
to manufacture organic readymade garments. Mr. Rajiv Rai Sachdev is
the key promoters and is actively engaged in managing day-to-day
operations of the company.
ALLIANCE FIBRES: CRISIL Maintains D Rating in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Alliance Fibres
Limited (AFL) continue to be 'CRISIL D/CRISIL D Issuer not
cooperating'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee .72 CRISIL D (ISSUER NOT
COOPERATING)
Cash Credit 45.73 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term
Bank Loan Facility 19.47 CRISIL D (ISSUER NOT
COOPERATING)
Term Loan 15.08 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with AFL for obtaining
information through letters and emails dated November 30, 2018 and
May 13, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of AFL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on AFL is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of AFL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Incorporated in 2006, AFL manufactures polyester staple fibre (PSF)
and partially-oriented yarn (POY) from waste PET bottles. The
company also manufactures regenerated PET flakes. The Surat-based
company is promoted by Mr. Ashwin Patel and his family members, and
is a part of the Gujarat-based Khodiyar group.
ARUPPUKOTTAI SRI: CRISIL Maintains B Rating in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Aruppukottai Sri
Jayavilas Limited (ASJVL) continue to be 'CRISIL B/Stable/CRISIL A4
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 21.7 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Cash Term Loan 27.82 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Inland/Import 5.60 CRISIL A4 (ISSUER NOT
Letter of Credit COOPERATING)
CRISIL has been consistently following up with ASJVL for obtaining
information through letters and emails dated
November 30, 2018 and May 13, 2019 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of ASJVL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ASJVL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of ASJVL continues to be 'CRISIL B/Stable/CRISIL A4
Issuer not cooperating'.
Incorporated in 1951 in Aruppukottai, Tamil Nadu, ASJVL
manufactures cotton and polyester-blended cotton yarn used for
knitting and weaving. Unit has installed capacity of about 70,000
spindles. The company also runs an Indian Oil Corporation Ltd
petrol pump in Madurai, along with operating a bus service on local
route. Operations are managed by Mr. TRS Karthikeyan.
ARVIND PIPES: ICRA Cuts INR7cr LOC Rating to D, Not Cooperating
---------------------------------------------------------------
ICRA has downgraded the rating of bank facilities of Arvind Pipes &
Fittings Industries Private Limited to [ICRA]D /[ICRA]D from
[ICRA]B- (Stable)/[ICRA]A4. The ratings continue to be in 'Issuer
Not Cooperating' category. The rating is now denoted as "[ICRA]D
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 6.75 [ICRA]D ISSUER NOT COOPERATING
Cash Credit revised from [ICRA]B- (Stable),
Rating continues to be in the
'Issuer Not Cooperating'
Category
Fund based- 3.00 [ICRA]D ISSUER NOT COOPERATING
Term Loan revised from [ICRA]B- (Stable),
Rating continues to be in the
'Issuer Not Cooperating'
Category
Fund based- 1.00 [ICRA]D ISSUER NOT COOPERATING
packing credit revised from [ICRA]A4, Rating
continues to be in the 'Issuer
Not Cooperating' category
Non fund based- 7.00 [ICRA]D ISSUER NOT COOPERATING
Letter of Credit revised from [ICRA]A4, Rating
continues to be in the 'Issuer
Not Cooperating' category
Unallocated 2.25 [ICRA]D ISSUER NOT COOPERATING
revised from [ICRA]B- (Stable)/
[ICRA]A4, Rating continues to
be in the '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 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,
despite the downgrade.
Rationale
The rating downgrade follows the delays in debt servicing by Arvind
Pipes & Fittings Industries Private Limited to the lender, as
confirmed by them to ICRA.
Arvind Pipe & Fittings Industries Private Limited was incorporated
in the year 1982 as Arvind Metal Syndicate. The company commenced
commercial operations with trading in pipe fittings and flanges and
ventured into manufacturing of the aforementioned products in 1990.
Subsequently, in the year 2004, APFIPL commissioned its second unit
to manufacture seamless and welded pipes. The company's both
manufacturing units are located in Waghodia near Baroda in Gujarat
and have a combined installed capacity of around 2000 MTPA.
BGR MINING: Ind-Ra Lowers Long Term Issuer Rating to 'D'
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded BGR Mining &
Infra Limited's (BGR) Long-Term Issuer Rating to 'IND D' from 'IND
BB+'. The Outlook on the earlier rating was Negative.
The instrument-wise rating actions are:
-- INR1.250 bil. Fund-based working capital limits (Long-
term/Short-term) downgraded with IND D rating;
-- INR6.0 bil. Non-fund-based working capital limits (Short-term)
downgraded with IND D rating;
-- INR7,743.1 bil. Term loans (Long-term) due on June 2022
downgraded with IND D rating; and
-- INR837.4 mil. Proposed term loans (Long-term)* downgraded with
Provisional IND D rating.
*The rating is provisional and shall be confirmed upon the sanction
and execution of the loan documents for the above facilities by BGR
to the satisfaction of Ind-Ra.
KEY RATING DRIVERS
The downgrade reflects the delays in debt/interest servicing by BGR
of its term loans during the six months ended May 2019.
RATING SENSITIVITIES
Positive: Timely debt servicing for three consecutive months would
be positive for the ratings.
COMPANY PROFILE
Incorporated in 1988, BGR is a Hyderabad-based mining contractor,
majorly involved in overburden removal and coal extraction.
BRFM INDIA: Ind-Ra Migrates B+ LT Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated BRFM India Private
Limited's Long-Term Issuer rating to the non-cooperating category.
The issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings. The rating will now appear as 'IND B+
(ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR49.58 mil. Long-term loan due on November 2021 migrated to
non-cooperating category with IND B+ (ISSUER NOT COOPERATING)
rating;
-- INR57.5 mil. Fund-based working capital limits migrated to
non-cooperating category with IND B+ (ISSUER NOT COOPERATING)
/ IND A4 (ISSUER NOT COOPERATING) rating; and
-- INR10.5 mil. Non-fund-based working capital limits migrated to
non-cooperating category with IND A4 (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
June 18, 2018. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
BRFM manufactures wheat flour, semolina, flour and bran, and whole
wheat flour.
CONCORD CONSTRUCTION: CRISIL Keeps B+ Rating in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Concord Construction
(CC) continue to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 39 CRISIL A4 (ISSUER NOT
COOPERATING)
Cash Credit 10 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with CC for obtaining
information through letters and emails dated November 30, 2018 and
May 13, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of CC, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on CC is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of CC continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer
not cooperating'.
Set up in 1997, CC undertakes civil construction works in Karnataka
and Kerala. Mr Mahin Kallatra manages the operations.
CROWN PROPBUILD: CRISIL Maintains B+ Rating in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Crown Propbuild
Private Limited (CPPL) continue to be 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Short Term 5 CRISIL A4 (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 35 CRISIL B+/Stable (ISSUER
NOT COOPERATING)
CRISIL has been consistently following up with CPPL for obtaining
information through letters and emails dated February 26, 2019 and
May 28, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of CPPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on CPPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of CPPL continues to be 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
CPPL, incorporated in 2011 and promoted by Mr. Ajay Gupta and Mr.
Virender Gupta, is undertaking a residential-cum commercial real
estate project, Sapphire Ninety, in Gurgaon, Haryana. The project
is expected to be complete by December 2017.
D.R. DISTRIBUTORS: CRISIL Lowers Rating on INR12cr Loan to B+
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of D.R. Distributors
Private Limited (DRDPL) revised to be 'CRISIL B+/Stable Issuer not
cooperating'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with DRDPL for obtaining
information through letters and emails dated November 30, 2018 and
May 13, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of DRDPL , which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on DRDPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of DRDPL revised to be 'CRISIL B+/Stable Issuer not
cooperating'
Set up as a partnership firm in 1985 and reconstituted as a private
limited company in 2004, DRDPL is promoted by Mr. Dinesh Gupta, his
wife, Ms. Rajni Gupta, and their son, Mr. Vipul Gupta. The company
distributes pharmaceutical formulations in the form of tablets,
syrups, and injectable in South Delhi.
DUVET INDUSTRIES: CRISIL Maintains B+ Rating in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Duvet Industries
(Duvet) continue to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee .2 CRISIL A4 (ISSUER NOT
COOPERATING)
Cash Credit 3.0 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Term Loan 2.8 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with Duvet for obtaining
information through letters and emails dated
November 30, 2018 and May 13, 2019 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Duvet, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on Duvet is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of Duvet continues to be 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
Set up in January, 2016, as a partnership concern, Duvet
manufactures mink blankets. The firm started commercial operations
in September, 2016.
FERRO ALLOYS: ICRA Reaffirms D Rating on INR51.57cr ST Loan
-----------------------------------------------------------
ICRA reaffirmed ratings on certain bank facilities of
Ferro Alloys Corporation Limited (FACOR), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Fund- 37.29 [ICRA]D; reaffirmed
based Bank
Facility (Cash
Credit)
Long-term 21.03 [ICRA]D; reaffirmed
Unallocated
Limits
Short-term Non- 51.57 [ICRA]D; reaffirmed
fund Based Bank
Facility (Letter
of Credit)
Rationale
The rating reaffirmation factors in the ongoing insolvency
proceedings against FACOR as the Corporate Guarantor for a debt
sanctioned to its 86%-owned subsidiary - Facor Power Limited (FPL),
by Rural Electrification Corporation Limited (REC). On non-payment
of the guaranteed obligations, REC had initiated insolvency
proceedings against FACOR as the corporate guarantor, under Section
7 of the Insolvency and Bankruptcy Code (IBC), 2016, in July 2017.
With resolution plans currently under consideration by the
Committee of Creditors, the next hearing on the case has been
scheduled on June 4, 2019 in the National Company Law Tribunal
(NCLT). Given the continued uncertainty on the outcome of
insolvency proceedings, ICRA will continue to closely monitor
developments in this regard and take a suitable rating action,
whenever warranted. While reaffirming the rating, ICRA has however
noted that FACOR has been regular in servicing its own debt
obligations since August 2018, facilitated by healthy cash accrual
generation as well as a substantial decline in its debt obligations
on a standalone basis. In fact, surplus free cash flows generated
in the last two financial years have strengthened the company's
liquidity position and reduced its reliance on working capital
borrowings. Besides favourable demand scenario and healthy product
realisations, the company's performance has been supported by
uninterrupted access to chrome ore and power. This is due to its
backward integrated operations, with two operational captive mines
in Odisha and a 100-MW power plant under FPL. In this context, it
is pertinent to note that cancellation or delay in renewal of
leases for some of the mines has increased the company's dependence
on external procurement of chrome ore in recent years. Accordingly,
the company's revenue and profitability remain susceptible to the
risk of cancellation of licence or delay in renewal of leases for
the operational mines as well as to the cyclical nature of the
ferro chrome industry.
Key rating drivers
Credit challenges
Sizeable overdue guaranteed obligations under subsidiary;
insolvency proceedings against FACOR are currently under way Ferro
Alloys FACOR had executed a corporate guarantee of INR517.90 crore
in favour of REC, which had sanctioned a term loan of the same
amount to its subsidiary - FPL. Subsequent to a default by FPL on
the debt, REC invoked the corporate guarantee in October 2015 and
initiated insolvency proceedings against FACOR as the corporate
guarantor under Section 7 of the IBC 2016, in July 2017. The
resolution proceedings involve preparation and implementation of a
resolution plan (or otherwise liquidation, if resolution plan does
not get accepted). With resolution plans currently under
consideration by the Committee of Creditors, the next hearing in
the NCLT has been scheduled on June 4, 2019. As of now, uncertainty
remains on the final outcome of the insolvency proceedings and the
likely impact of the same on the company.
Cancellation of license or delay in renewal of mining lease: Till a
few years back, FACOR had access to four captive chrome ore mines;
however, as on date, only two mines are operational. While licence
for one of the mines (Boula mine) got cancelled in 2012 because of
forest reserve issues, mining lease in another mine (Kathpal),
which expired in October 2012, has not been renewed until now due
to delays in approvals from the state government. This has
increased the company's reliance on external procurement of chrome
ore over the years. Further, the company remains exposed to such
risks for its operational mining assets.
Exposure to cyclical nature of ferro-chrome industry results in
volatile cash flows: The company remains exposed to the cyclical
nature of the ferro-chrome industry. In the past as well, FACOR
witnessed considerable volatility in cash flows on the back of
fluctuations in ferro-chrome prices. However, the long-term demand
outlook for stainless steel, the primary consumer of ferro chrome,
remains positive, which in turn supports the favourable demand
scenario in the ferrochrome industry.
Liquidity position
On a standalone basis, the company's liquidity position has
improved in recent years and stands healthy, supported by its
healthy cash accruals, limited capital expenditure and no debt
repayment burden given its term debt-free status. The healthy
liquidity profile is corroborated by its sizeable investments, and
cash and liquid balances (INR69 crore as on March 31, 2019).
For arriving at the rating, ICRA has analysed the standalone
business and financial risk profile of FACOR. Further, ICRA has
also taken into consideration FACOR's exposure to debt under
subsidiary (FPL) as the corporate guarantor, for which insolvency
proceedings are currently under way against it and the case is
pending for hearing in the NCLT, Cuttack Bench.
Ferro Alloys Corporation Limited was incorporated in 1957 by Mr.
Uma Shankar Agarwal and the Saraf family. The company's performance
was satisfactory till early 1990s. However, certain factors, such
as debt-funded capital expenditure on diesel-generator (DG) based
power plants, adverse foreign exchange fluctuations and decline in
ferro-chrome realisations, affected the company's ability to repay
the debt on its books.
Subsequently, as a part of a restructuring scheme approved by all
the lenders, FACOR was trifurcated into three separate companies,
namely FACOR, Facor Alloys Limited (FAL) and Facor Steels Limited
(FSL), w.e.f. April 1, 2004 based on division of operations and
manufacturing facilities.
Listed on the Bombay Stock Exchange (BSE), FACOR manufactures
high-carbon ferro-chrome in its unit located at Randia, Odisha. The
unit has an installed capacity of 65,000 tonne per annum (TPA). It
also has two operational captive chrome ore mines in Odisha. The
mined chrome ore is primarily used to meet its own raw material
requirements. FACOR also owns a 100-MW power plant through its
subsidiary, FPL, located adjacent to its ferro-chrome manufacturing
unit.
In FY2019, the company reported a net profit of INR28.06 crore on
an operating income (OI) of INR575.38 crore, compared to a net
profit of INR55.48 crore on an OI of INR539.08 crore in FY2018.
FOMENTO RESOURCES: Ind-Ra Affirms Then Withdraws D Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Fomento Resources
Private Limited's Long-Term Issuer Rating at 'IND D' and
simultaneously withdrawn it.
The instrument-wise rating actions are:
-- The 'IND D' rating on the INR2,009.5 bil. Term loan* (Long-
term) due on October 2022 affirmed and withdrawn; and
-- The 'IND D' rating on the INR700 mil. Fund-based working
capital facility* (Long-term) affirmed and withdrawn.
*Affirmed at 'IND D' before being withdrawn
KEY RATING DRIVERS
The affirmation reflects Fomento Resources' delay in debt servicing
in April 2019. Ind-Ra is no longer required to maintain the ratings
as the agency has received no-objection certificates from the rated
facilities' lenders. This is consistent with The Securities and
Exchange Board of India's circular dated March 31, 2017, for credit
rating agencies.
COMPANY PROFILE
Incorporated in 2010, Fomento Resources is the trading arm of the
Fomento group, which has been involved in the purchase of iron ore
from its own mines as well as other mines in Goa and Maharashtra.
G. K. INTERNATIONAL: CRISIL Lowers Rating on INR6.5cr Loan to B+
----------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of G. K.
International (GKI) to 'CRISIL B+/Stable' from 'CRISIL BB-/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with GKI for obtaining
information through letters and emails dated November 30, 2018 and
May 13, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of GKI, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on GKI is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of GKI revised to be 'CRISIL B+/Stable Issuer not
cooperating'
The Gopi Chand group imports and trades in dry fruits such as
almonds and pistachios. GKI, set up in 1984, is a proprietorship
concern and is managed by Mr. Vikram Bhatia. GCK is a
proprietorship concern under Mr. Krishan Kumar Bhatia HUF and is
actively managed by his son Mr. Vikram Bhatia.
GHELI INTERNATIONAL: Insolvency Resolution Process Case Summary
---------------------------------------------------------------
Debtor: Gheli International Private Limited
LG-1A, Siddhartha Chambers
Hauz Khas New Delhi 110016
Insolvency Commencement Date: May 23, 2019
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: December 3, 2019
(180 days from commencement)
Insolvency professional: Pramod Kumar Sharma
Interim Resolution
Professional: Pramod Kumar Sharma
H.No. 16, Dasharath Kunj-B
West Arjun Nagar, Agra
Uttar Pradesh 282001
E-mail: pksharmafcs@gmail.com
gheliinternational.cirp@gmail.com
Last date for
submission of claims: June 20, 2019
HI-TECH HYDRAULIC: Ind-Ra Moves B Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Hi-Tech Hydraulic
Engineers' (HTHE) Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND B (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR31.25 mil. Term loan due on December 2022 migrated to non-
cooperating category with IND B (ISSUER NOT COOPERATING)
rating;
-- INR60 mil. Fund-based working capital limit migrated to non-
cooperating category with IND B (ISSUER NOT COOPERATING)
rating; and
-- INR30 mil. Non-fund-based working capital limits migrated to
non-cooperating category with IND A4 (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
June 21, 2018. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Hyderabad-based HTHE is a partnership firm manufactures hydraulic
machinery components and heavy structural fabrication work.
JET AIRWAYS: NCLT Adjourns Insolvency Plea to June 20
-----------------------------------------------------
Livemint.com reports that the National Company Law Tribunal (NCLT)
on June 13 adjourned the insolvency plea against Jet Airways Ltd to
June 20 as the airline needed more time to respond to notices for
recovery of dues.
Livemint relates that two operational creditors, Shaman Wheels Pvt
Ltd and Gaggar Enterprises Pvt Ltd, had filed separate insolvency
pleas against the Naresh Goyal-founded Jet Airways at NCLT, Mumbai,
for recovery of dues on June 10.
Shaman Wheels, a vendor for trucks and trailers for the airline,
has dues of INR6.28 crore pending from Jet Airways, the report
discloses. Gaggar Enterprises sold packaged drinking water to the
carrier and the money owed to it could not be ascertained
immediately, say Livemint.
Based in Mumbai, India, Jet Airways (India) Limited --
https://www.jetairways.com/ -- provided passenger and cargo air
transportation services. It also provided aircraft leasing
services. It operated flights to 66 destinations in India and
international countries.
As reported in the Troubled Company Reporter-Asia Pacific on
April 22, 2019, Reuters said Jet Airways Ltd on April 17 halted all
flight operations after its lenders rejected its plea for emergency
funds, potentially bringing the curtains down on what was once
India's largest private airline.
Lenders of Jet Airways led by SBI are currently in the process of
selling the airline to recover their dues of over INR8,400 crore,
The Economic Times reported. Private equity firm TPG Capital,
Indigo Partners, National Investment and Infrastructure Fund (NIIF)
and Etihad Airways are in the race to buy a stake in the grounded
Jet Airways, ET said.
The total liabilities of the airline, including unpaid salaries and
vendor dues, are nearly INR15,000 crore, Livemint disclosed.
JYOTI PROCESSORS: Ind-Ra Migrates BB LT Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Jyoti Processors
Private Limited's (JPPL) Long-Term Issuer Rating to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating action is:
-- INR105 mil. Fund-based limits migrated to Non-Cooperating
Category with IND BB (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
June 14, 2018. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2005, JPPL manufactures Bengali cotton sarees for
the West Bengal market. It has a facility in Ahmedabad, Gujarat.
KAMA METAL: CRISIL Cuts INR7.75cr Cash Loan Rating to B+, Not Coop.
-------------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of Kama
Metal and Alloys Private Limited (KMPL) to 'CRISIL B+/Stable' from
'CRISIL BB-/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7.75 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Proposed Long Term .92 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Rupee Term Loan 2.33 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with KMPL for obtaining
information through letters and emails dated November 30, 2018 and
May 13, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of KMPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on KMPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of KMPL revised to be 'CRISIL B+/Stable Issuer not
cooperating'.
KMPL, incorporated in 2008, operates an ingot manufacturing unit
and a rolling division (key products include mild steel ingots and
pipes). The company has capacity to manufacture 4000 tonne per
month (tpm) of ingots and 400 tpm of pipes.
KIMAYA INDUSTRIES: CRISIL Lowers Rating on INR11cr Loan to D
------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of Kimaya
Industries Private Limited (KIPL) to 'CRISIL D' from 'CRISIL
BB-/Stable'. The downgrade reflects delays in servicing of bank
debt due to stretched liquidity.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 11 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
Term Loan 3.8 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
The rating also factors in the company's modest scale of operations
amid intense competition, large working capital requirement, and
weak financial risk profile. These weaknesses are partially offset
by the extensive experience of the promoters.
Key Rating Drivers & Detailed Description
Weakness:
* Modest scale of operations amid intense competition: Small scale
of operations, amid intense competition limits pricing power of
KIPL with suppliers and customers, thereby constraining
profitability.
* Large working capital requirement: Operations should remain
working capital intensive over the medium term, with high gross
current asset days, on account of high inventory holding and
receivables. There have been instances of overutilization in the
working capital limit.
* Below-average financial risk profile: Financial risk profile
remains subdued, owing to large working capital requirement, modest
networth, and high total outside liabilities to tangible networth
ratio. Debt protection metrics are weak, with a few instances of
delays in interest payment.
Strengths:
* Extensive experience of the promoters: Benefits from the close to
two-decade-long experience of the promoters and presence of the
'Kimaya' brand in the local market should continue to support the
business over the medium term.
Liquidity
* Delay in meeting term debt obligation: Cash accrual remained
insufficient to meet debt obligation, leading to delays in
repayment of bank debt.
* High bank limit utilisation: The company enjoys Cash credit
facility of INR11 crore, utilization is expected to remain high.
There have been a few instances of overutilization of the CC
limit.
* Current ratio: The ratio was moderate at 1.22 times as on March
31, 2018.
Incorporated in 1999, Gujarat-based KIPL manufactures embroidered
sarees, fabric, and dress materials and undertakes job work for
embroidery at its plant. Mr Rahul Bhatia and his family members are
the promoters.
LINCOLN INDUSTRIES: CRISIL Maintains B+ Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Lincoln Industries
Limited (LIL) continue to be 'CRISIL B+/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with LIL for obtaining
information through letters and emails dated November 30, 2018 and
May 13, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of LIL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on LIL is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of LIL continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
LIL, established in February 1983, gins cotton and manufactures oil
and oil cakes from cotton seeds. The company also trades in cotton
and cotton seeds. Mr. Praveen Chand Dhandhania, Mr. Shyam Sunder
Bhageria, Mr. Sushil Kumar Sureka, Mrs. Rinku Dhandhania, and Mr.
Sushovan Saharoy are the company's directors. Its operations are,
however, primarily managed by Mr. Dhandhania and Mr. Bhageria.
M V AGRO: ICRA Maintains D Rating in Not Cooperating Category
-------------------------------------------------------------
ICRA said the ratings for the INR16.00 crore bank facilities of M V
Agro Renewable Energy Pvt. Ltd. continue to remain in the 'Issuer
Not Cooperating' category. The rating is denoted as "[ICRA]D;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 4.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund-based- Rating continues to remain under
Cash Credit 'Issuer Not Cooperating'
category
Long-term- 11.50 [ICRA]D; ISSUER NOT COOPERATING;
Fund-based- Rating continues to remain under
TL 'Issuer Not Cooperating'
category
Long-term/Short- 0.50 [ICRA]D/[ICRA]D; ISSUER NOT
Term-Unallocated COOPERATING; Rating continues
to remain under '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.
M V Agro Renewable Energy Private Limited, incorporated in year
2014, manufactures bio fuel pellets from agro wastes, plant
residues, stems and plant biomass as the primary sources of raw
materials. The company has an installed capacity of 150 tons per
day and its manufacturing facility is located in Praskasham
District, Andhra Pradesh. The company started its operations in
2016.
MICROSYS POLYMERS: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Microsys Polymers Private Limited
B-373, Ground Floor
Meera Bagh, Paschim Vihar
New Delhi West Delhi DL 110063
Insolvency Commencement Date: May 27, 2019
Court: National Company Law Tribunal, Principal Bench
Estimated date of closure of
insolvency resolution process: December 2, 2019
(180 days from commencement)
Insolvency professional: Sunder Khatri
Interim Resolution
Professional: Sunder Khatri
GF-124 & 113, Worl Trade Centre
Lalit Hotel, Babar Road
Connaught Place
New Delhi 110001
E-mail: sunder_khatri@yahoo.com
cirp.microsyspolymers@gmail.com
Last date for
submission of claims: June 18, 2019
NANDI COTTON: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Nandi Cotton
Ginning Mill Private Limited's Long-Term Issuer Rating to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR21 mil. Term loans due on October 2020 migrated to non-
cooperating category with IND BB- (ISSUER NOT COOPERATING)
rating; and
-- INR140 mil. Fund-based facilities migrated to non-cooperating
category with IND BB- (ISSUER NOT COOPERATING) / IND A4+
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 3, 2018. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Nandi Cotton Ginning Mill is engaged in the ginning and pressing of
cotton (equipped with 36 ginning machines). It has a daily
installed capacity of 275 bales.
PHOENIIX: Ind-Ra Migrates B+ LT Issuer Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Phoeniix's
Long-Term Issuer Rating to the non-cooperating category. The issuer
did not participate in the rating exercise despite continuous
requests and follow-ups by the agency. Therefore, investors and
other users are advised to take appropriate caution while using
these ratings. The rating will now appear as 'IND B+ (ISSUER NOT
COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR160 mil. Fund-based facilities migrated to non-cooperating
category with IND B+ (ISSUER NOT COOPERATING) / IND A4
(ISSUER NOT COOPERATING) rating;
-- INR3 mil. Non-fund-based facilities migrated to non-
cooperating category with IND A4 (ISSUER NOT COOPERATING)
rating;
-- INR90 mil. Proposed fund-based facilities migrated to non-
cooperating category with Provisional IND B+ (ISSUER NOT
COOPERTING) / Provisional IND A4 (ISSUER NOT COOPERATING)
rating; and
-- INR7.5 mil. Proposed non-fund-based facilities migrated to
non-cooperating category with Provisional IND A4 (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 6, 2018. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 1994, Phoeniix is a Tamil Nadu-based proprietorship
concern set up by Mr. T.M. Muthukumar. It is engaged in
manufacturing and export of knitted garments for men, women, and
children.
PUNJAB SWITCHGEARS: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Punjab Switchgears Private Limited
B-30, Phase-V, Focal Point
Ludhiana, Punjab 141010
Insolvency Commencement Date: June 7, 2019
Court: National Company Law Tribunal, Ludhiana Bench
Estimated date of closure of
insolvency resolution process: December 3, 2019
Insolvency professional: Madan Gopal Jindal
Interim Resolution
Professional: Madan Gopal Jindal
M.G. Jindal & Associates
SCO: 7-8, 4th Floor, Jandu Tower
G.T. Road, Miller Ganj
Ludhiana (Punjab) 141003
E-mail: mgjindal@gmail.com
Last date for
submission of claims: June 21, 2019
PURE PETROCHEM: Ind-Ra Migrates 'BB-' LT Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Pure Petrochem
India Private Limited's (PPIPL) Long-Term Issuer Rating to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR45.0 mil. Fund-based working capital limits migrated to
non-cooperating category with IND BB- (ISSUER NOT
COOPERATING) / IND A4+ (ISSUER NOT COOPERATING) rating;
-- INR20.0 mil. Non-fund-based working capital limits migrated to
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating;
-- INR16.8 mil. Term loan due on November 2020 migrated to non-
cooperating category with IND BB- (ISSUER NOT COOPERATING)
rating; and
-- INR25.0 mil. Proposed fund-based working capital limits
migrated to non-cooperating category with Provisional IND BB-
(ISSUER NOT COOPERATING) / Provisional IND A4+ (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 2, 2018. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
PPIPL manufactures processes and supplies grease and lubricating
oils. Its annual total grease and lubricating oil production
capacity is 10,800 metric ton and 60,000 kilolitres, respectively.
SAINEST TUBES: Ind-Ra Migrates 'BB+' LT Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Sainest Tubes
Private Limited's (STPL) Long-Term Issuer Rating to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR200 mil. Fund-based working capital limits migrated to non-
cooperating category with IND BB+ (ISSUER NOT COOPERATING) /
IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR260 mil. Non-fund-based working capital limits migrated to
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
June 22, 2018. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in December 1988, STPL commenced commercial production
of precision seamless carbon steel tubes and pipes in 1993.
SHEKHADA COT-GIN: ICRA Withdraws B+ Rating on INR9.15cr Loans
-------------------------------------------------------------
ICRA has withdrawn the long-term rating of [ICRA]B+ with a Stable
outlook ISSUER NOT COOPERATING assigned to the INR9.15 crore bank
facilities of Shekhada Cot-Gin Pvt. Ltd. (SCGPL).
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based- 9.00 [ICRA]B+(Stable) ISSUER NOT
Cash Credit COOPERATING; Withdrawn
Limit
Fund-based- 0.15 [ICRA]B+(Stable) ISSUER NOT
Term Loan COOPERATING; Withdrawn
Rationale
The ratings assigned to Shekhada Cot-Gin Pvt. Ltd. have been
withdrawn at its request based on the no objection certificate
provided by its banker.
Incorporated in 2011, SCGPL is engaged in cotton ginning & pressing
of raw cotton to produce cotton bales and cotton seed. It is
promoted jointly by Mr. Paresh Shekhada, Mr. Virag Shekhada and Mr.
Bharat Shekhada. The company's plant is located at Jamnagar
(Gujarat) with installed capacity to manufacture 200 cotton bales
per day.
SHREE VINDHYA CAST: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Shree Vindhya Cast Coasters Limited
Shree Vindhya Paper Mills Compound
Somani Nagar, Duskheda Via Bhusawal
Maharashtra 425203
Insolvency Commencement Date: May 31, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: November 27, 2019
Insolvency professional: Mr. Vijendra Kumar Jain
Interim Resolution
Professional: Mr. Vijendra Kumar Jain
401/402, Sai Trishul
Raviraj Oberoi Complex
Off New Link Road, Andheri East
Mumbai 400053
E-mail: vkj310@gmail.com
- and -
Kanchansobha Debt Resolution Advisors LLP
1507-Wing, One BKC, Plot No. C-66
G Block, Bandra Kurla Complex
Bandra East, Mumbai 400051
E-mail: vindhyacast@kanchansobha.com
Last date for
submission of claims: June 24, 2019
SHREE VINDHYA PAPER: Insolvency Resolution Process Case Summary
---------------------------------------------------------------
Debtor: Shree Vindhya Paper Mills Limited
Somani Nagar, Duskheda Yawal
Jalgoan, Maharashtra 425203
Insolvency Commencement Date: June 7, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: December 4, 2019
Insolvency professional: Mr. Vijendra Kumar Jain
Interim Resolution
Professional: Mr. Vijendra Kumar Jain
401/402, Sai Trishul
Raviraj Oberoi Complex
Off New Link Road, Andheri East
Mumbai 400053
E-mail: vkj310@gmail.com
- and -
Kanchansobha Debt Resolution Advisors LLP
1507-Wing, One BKC, Plot No. C-66
G Block, Bandra Kurla Complex
Bandra East, Mumbai 400051
E-mail: vindhyapaper@kanchansobha.com
Last date for
submission of claims: June 24, 2019
SOHRAB SPINNING: CRISIL Maintains D Rating in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Sohrab Spinning Mills
Limited (SSML) continue to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 16 CRISIL D (ISSUER NOT
COOPERATING)
Letter of Credit 2 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 2 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 12 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SSML for obtaining
information through letters and emails dated November 30, 2018 and
May 13, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SSML, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SSML is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of SSML continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Set up in 1989 by Mr Amjad Ali, SSML manufactures industrial yarn
that finds application mainly in the tyre industry. The remaining
revenue is derived from manufacture of hosiery yarn. The company
has a manufacturing facility in Malerkotla, Punjab.
SRI VENKATA: ICRA Withdraws 'B+' Rating on INR15cr Loans
--------------------------------------------------------
ICRA has withdrawn the long-term rating of [ICRA]B+ with a Stable
outlook ISSUER NOT COOPERATING assigned to the INR15 crore bank
facilities of Sri Venkata Srinivasa Raw & Boiled Rice Mill
(SVSRBRM).
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based-CC 10.75 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; withdrawn
Fund based-
Term Loan 0.11 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; withdrawn
Non Fund based 1.00 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; withdrawn
Unallocated 3.14 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; withdrawn
Rationale
The rating is withdrawn in accordance with ICRA's policy on
withdrawal and suspension at the request from the company based on
no objection provided by its lenders.
Outlook: Not Applicable
Sri Venkata Srinivasa Raw & Boiled Rice Mill (SVSRBRM) was
established as a partnership firm in 1986 by Mr. Srinivasa Rao, who
possess more than 20 years of experience in rice industry. The firm
is situated in the Nellore district of Andhra Pradesh and is
engaged in milling of paddy to produce non-basmati rice. It has an
installed production capacity of 6 tonnes per hour.
THIRU AROORAN: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Thiru Arooran Sugars Limited
Eldorado Building, V Floor 112
Uttamar Gandhi Salai Nungan-Bakkam
Chennai 34 TN 600034 IN
Insolvency Commencement Date: June 7, 2019
Court: National Company Law Tribunal, Division Bench, Chennai
Estimated date of closure of
insolvency resolution process: December 4, 2019
(180 days from commencement)
Insolvency professional: R. Raghavendran
Interim Resolution
Professional: R. Raghavendran
Flat No. 3, Dhruvatara Apartments
241, Dr. Rajendraprasad Road
Tatabad, Coimbatore 641012
E-mail: ragavca@gmail.com
Last date for
submission of claims: June 21, 2019
TRIPURARI AGRO: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Tripurari Agro Private Limited
Registered office:
2937, Ground Floor
Ganesh Nagar Link Road
Industrial Area-A
Ludhiana 141008
Insolvency Commencement Date: June 7, 2019
Court: National Company Law Tribunal, Ludhiana Bench
Estimated date of closure of
insolvency resolution process: December 4, 2019
Insolvency professional: Suresh Kumar Bansal
Interim Resolution
Professional: Suresh Kumar Bansal
23GF, HIG Flats
Raj Guru Nagar
Ludhiana 141012
E-mail: pnbbansal@rediffmail.com
tripurari_pnbbansal@
rediffmail.com
Last date for
submission of claims: June 22, 2019
VANI TOBACCOS: CRISIL Assigns B+ Rating to INR6cr Loan
------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Vani Tobaccos (VT).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL B+/Stable (Assigned)
Export Packing
Credit 6 CRISIL B+/Stable (Assigned)
The rating reflects the firm's susceptibility to intense
competition and changes in government regulations regarding the
tobacco industry, modest scale of operations, and below-average
financial risk profile. These weaknesses are partially offset by
the extensive experience of its proprietor.
Key Rating Drivers & Detailed Description
Weakness:
* Susceptibility to intense competition and changes in government
regulations: The tobacco industry is highly fragmented with many
organised and unorganised players. Furthermore, over the past few
years, government and non-government organisations have undertaken
initiatives to create awareness about the adverse effects of
tobacco. These factors have constrained the firm's business risk
profile.
* Modest scale of operations: With an estimated revenue of INR15
crore in fiscal 2019, scale remains small and limits bargaining
power with customers and suppliers.
* Below-average financial risk profile: Gearing was high at 4.4
times as on March 31, 2018 while networth was small at INR1.24
crore. However, networth is estimated to improve over the medium
term on account of equity infusion in fiscal 2019 and steady
accretion to reserves, which will likely moderate gearing to around
2 times as on March 31, 2019. Estimated net cash accrual to total
debt and interest coverage ratios were 4% and 2 times,
respectively, in fiscal 2019.
Strengths:
* Extensive experience of proprietor: Industry presence of around
two decades has enabled the proprietor to establish healthy
relationship with customers and suppliers.
Liquidity
Liquidity is stretched, as reflected in estimated net cash accrual
of INR0.24 crore in fiscal 2019, and expected annual accrual of
INR0.27-0.30 crore over the medium term, against low debt
obligation of 2 lakhs over the medium term. Bank limit is
moderately utilized at an average of 67% over the 12 months through
April 2019.
Outlook: Stable
CRISIL believes VT will continue to benefit from its longstanding
relationship with principals and experience of management in
mitigating inherent risk in trading business. The outlook may be
revised to 'Positive' if revenue growth sustains over the medium
term while financial risk profile improves. The outlook may be
revised to 'Negative' if business stagnates due to weak demand, or
if stretch in receivables or pile-up of inventory adversely affects
liquidity.
Established in 1999 as a proprietorship firm by Mr NV Siva
Koteswara Rao, VT is based in Andhra Pradesh and trades tobacco.
VVA DEVELOPERS: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: VVA Developers Private Limited
Registered office:
422, Ansal Chamber-II 6 Bhikajicama Place
New Delhi 110066
Insolvency Commencement Date: June 6, 2019
Court: National Company Law Tribunal, Noida Bench
Estimated date of closure of
insolvency resolution process: December 2, 2019
Insolvency professional: Mr. Deepak Maini
Interim Resolution
Professional: Mr. Deepak Maini
C-100, Sector-2
Noida Uttar Pradesh 201301
E-mail: Deepak.maini@
insolvencyservices.in
vva.cirp@gmail.com
Classes of creditors: (1) Home Buyers
(2) Commercial Space Buyers
Insolvency
Professionals
Representative of
Creditors in a class: (1) For Home Buyers:
Mr. Anil Kumar Jain
Flat No. 255 B, IInd Floor Block A 1
Near Central School
Lawrence Road, Keshav Puram
New Delhi 110035
E-mail: aniljn@yahoo.com
Mr. Ghanshyam Kaushik
144-C, Mianwali Colony, Gurgaon
Haryana 122001
E-mail: gskaushik111@yahoo.com
Mr. Sanjeet Kumar Sharma
Be 149, Street No. 5, Hari Nagar
New Delhi
E-mail: sansharma1975@gmail.com
(2) For Commercial Space Buyers:
Mr. Anil Tayal
204, Sagar Plaza, Plot No. 19
District Centre, Laxmi Nagar
New Delhi 110092
E-mail: caaniltayal@gmail.com
Mr. Anurag Nirbhaya
204, Sagar Plaza, Plot No. 19
District Centre, Laxmi Nagar
New Delhi 110092
E-mail: anurag@canirbhaya.com
Gurdev Bassi
1629 Progressive Housing Society
Sec-50-b, Chandigarh 160047
E-mail: ipgurdevbassi@gmail.com
Last date for
submission of claims: June 20, 2019
YOUNG INDUSTRIES: CRISIL Raises Rating on INR8cr Loan to B+
-----------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facility of
Young Industries (YI) to 'CRISIL B+/Stable' from 'CRISIL
B/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The upgrade reflects improvement in the firm's business risk
profile, with increased revenue to INR18.26 crore from INR16.87
crore of fiscal 2017, also profitability remaining stable in the
two fiscals through 2019 at 10.8% which is improved from 2% of
fiscal 2017. Financial risk profile has strengthened, too, backed
by capital infusion by the partners in fiscal 2018 of INR3.40
crore. Gearing is estimated at 1.46 times as on March 31, 2019.
Interest coverage ratio is estimated at 1.62 times in fiscal 2019.
The rating continues to reflect YI's modest scale of operations in
the intensely competitive radiator and heat exchanger industry, and
its large working capital requirement and average financial risk
profile. These weaknesses are partially offset by the extensive
experience of the partners and their healthy relationships with
clients.
Analytical Approach
Unsecured loans (outstanding at INR0.39 lakh as on March 31, 2019)
extended to YI by the partners have been treated as neither debt
for equity because the loans are likely to remain in the business
over the medium term.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations: Intense competition continues to
constrain scalability: operating income remained modest at INR18
crore in fiscal 2019.
* Large working capital requirement: Operations are working capital
intensive, with gross current assets estimated at 283 days as on
March 31, 2019, due to large inventory of 220 days. Inventory is
sizeable because lead time for manufacturing is long and a large
stock of jigs and dies has to be maintained.
* Average financial risk profile: Financial risk profile is
average, with networth and gearing estimated at INR5.69 crore and
1.46 times, respectively, as on March 31, 2019. Debt protection
metrics were muted, with interest coverage and net cash accrual to
total debt ratios estimated at 1.62 time and 0.08 time,
respectively, in fiscal 2019.
Strengths
* Extensive experience of the partners: Benefits from the partners'
experience of more than four decades should continue to support
business risk profile.
* Established relationships with clients: The firm is an approved
vendor for Kirloskar Cummins Ltd, Kirloskar Pnuematic Ltd,
Hindustan Power Plus Ltd, Hindustan Motors Ltd, Indian Railways,
Ashok Leyland Ltd, Larsen and Toubro Ltd, Supernova Engineers Ltd,
Cooper Corporation Pvt Ltd, and Greaves Cotton Ltd. Around 95% of
the revenue is derived from these customers.
Liquidity
Liquidity is likely to remain average over the medium term. Cash
accrual - estimated low at INR0.65 crore in fiscal 2019 and INR0.95
crore in fiscal 2020 however should suffice yearly debt obligation
of INR0.10 crore. Bank limit was fully utilised in the 12 months
through April 2019. Timely enhancement in cash credit limits will
remain key rating monitorable. Current ratio is estimated at 1.20
times as on March 31, 2019.
Outlook: Stable
CRISIL believes YI will continue to benefit from the extensive
experience of its partners. The outlook may be revised to
'Positive' if a significant increase in revenue and profitability
strengthens net cash accrual. The outlook may be revised to
'Negative' if low cash accrual, stretched working capital cycle, or
large capital expenditure weakens financial risk profile,
particularly liquidity.
YI was established as a partnership firm between Mr Osman Talab and
Ms Zehra Talab in 1971. Their son, Mr Salim Talab (also a partner),
manages operations currently. The firm manufactures radiators, oil
coolers, and heat exchangers used in diesel engines, power
generators, and locomotives, at its unit in Pune.
[*] INDIA: Tightens Credit Rating Norms After Defaults, Downgrades
------------------------------------------------------------------
Reuters reports that India's market regulator on June 13 ordered
enhanced disclosure norms for credit rating agencies in an effort
to increase transparency as the country reels under a slew of
rating downgrades and defaults that have roiled debt and equity
markets.
According to Reuters, the Securities and Exchange Board of India
(SEBI) directed ratings agencies to formulate a uniform benchmark
for the "probability of default" for each rating category and
disclose that on their website for the ratings of long-term and
short-term instruments.
Reuters relates that SEBI also asked them to disclose in their
press release factors to which a rating is sensitive and explain
operating and financial performance that could trigger a rating
change.
"Such factors shall be disclosed in quantitative terms to the
extent possible, discernible to the investors, and should not read
like a general risk factor," SEBI said in a circular.
Reuters notes that the regulator's latest move comes after a string
of defaults at Infrastructure Leasing and Financial Services Ltd
(IL&FS) last year spooked markets and prompted the government to
step in and take control of the company to limit fears of a
contagion.
Two weeks ago, shares of private home mortgage lender Dewan Housing
Finance Corp Ltd's (DHFL) plummeted following sharp ratings
downgrades after it missed payments on bonds fanning fears of a
liquidity crisis, notes the report.
SEBI has toughened regulations for credit rating agencies over the
past three years to boost monitoring, bring clarity for investors
and increase accountability.
On June 13, SEBI also ordered them to frame a uniform "standard
operating procedure" to track and timely recognise defaults, adds
Reuters.
===============
M A L A Y S I A
===============
RESORT SAVERS: Needs More Capital to Continue as Going Concern
--------------------------------------------------------------
Resort Savers, Inc. filed with the U.S. Securities and Exchange
Commission its annual report on Form 10-K, disclosing net income of
$1.434 million on $37.07 million of revenue for the year ended Dec.
31, 2018, compared to net income of $1,140 on $891,875 of revenue
for the year ended in 2017.
Resort Savers also reported net income of $271,500 for the three
months ended March 31, 2019, a turnaround from a net loss of
$112,900 for the same period a year ago.
At March 31, 2019, the Company had $19.93 million in total assets
against $10.02 million in total liabilities and $9.905 million in
total equity.
The Company's balance sheet at Dec. 31, 2018, had showed total
assets of $43.62 million, total liabilities of $34.13 million, and
a total stockholders' equity of $9.486 million.
The substantial reduction in assets is primarily in changes to the
Company's accounts receivable. As at March 31, 2019 and Dec. 31,
2018, the Company had accounts receivable of $12.19 million and
$38.17 million, respectively and trade receivables from customers
which are related to the Company of $11.48 million and $37.055
million are included in accounts receivable.
The Company has not yet had sufficient revenues to cover its
operating cost, and requires additional capital to commence its
operating plan. The ability of the Company to continue as a going
concern is dependent on the Company obtaining adequate capital to
fund operating losses until it becomes profitable. If the Company
is unable to obtain adequate capital, it could be forced to cease
operations. These factors raise substantial doubt about its
ability to continue as a going concern.
A copy of the Form 10-K is available at:
https://is.gd/Bb2oVj
A copy of the March 2019 quarterly report is available at
https://is.gd/qYWpxM
Resort Savers, Inc., trades in oil, gas, and lubricant products in
the People's Republic of China. It also provides nutrition
consultancy services and training, as well as sells health products
through an online store. The company is based in Puchong,
Malaysia.
=====================
N E W Z E A L A N D
=====================
EBERT CONSTRUCTION: Liquidators Take Action to Claw Back NZ$1.3M
----------------------------------------------------------------
Madison Reidy at Radio New Zealand reports that the liquidators of
Ebert Construction are taking legal action to claw back a portion
of the NZ$7.3 million paid to a company controlled by Ebert's
directors while the company was technically insolvent.
RNZ says liquidators have lodged a claim in the High Court in
Wellington to order the company, Wakefield Plant, to pay back
NZ$1.3 million, which is an amount they received prior to
liquidation but were not entitled to at the time.
Ebert made the NZ$7.3 million in payments to cover advances from
Wakefield Plant, which has the same board and shareholders as Ebert
Construction, the report relates.
"I do not accept that the respondent received the impugned payment
in good faith. The respondent [Wakefield] and the company [Ebert]
shared a board of directors," the liquidators, Iain Shephard and
Jessica Kellow of BDO, said in an affidavit, RNZ relays.
According to RNZ, Mr. Shephard said the payments to Wakefield
superceded the claims of other unsecured creditors, including
tradesworkers, who are NZ$109.5 million out-of-pocket.
The directors disagreed with the liquidators' view regarding their
entitlement because Ebert was not insolvent when those payments
were made, he said.
"I doubt that the respondent will be able to show that it did not
have reasonable grounds to suspect that the company was, or would
become, insolvent."
Mr. Shephard has previously said Ebert's directors may have
breached their duties, RNZ says.
About Ebert Construction
New Zealand-based Ebert Construction Limited provided construction
management services. It offered design management, value
engineering, cost planning, programming, construction management,
health and safety management, quality management, and project
reporting services.
Lara Bennett, John Fisk and Richard Longman from PwC were appointed
receivers to Ebert Construction Limited in July 2018 as a result of
a request made by the Ebert Board of Directors to its bank.
At the time of PwC's appointment, the company was involved in 15
active projects, employed 100 staff and was forecasting turnover of
NZ$171 million in the year through March 2019, according to NZ
Herald.
Some NZ$640,000 was owed to staff as preferential creditors, with a
further NZ$1.3 million owed to employees on an unsecured basis, NZ
Herald disclosed citing receivers' first report.
NZ Herald said Ebert co-founder and managing director Kevin Hale is
also a secured creditor, owed NZ$3.5 million, which he loaned to
the business on July 24, 2018, as a short-term measure before new
capital was raised from other shareholders.
Ebert was placed in liquidation in October 2018.
=================
S I N G A P O R E
=================
HYFLUX LTD: Receives LOI from Chinese Power Service Provider
------------------------------------------------------------
Grace Leong at The Straits Times reports that Hyflux Ltd has
received a fourth non-binding letter of intent (LOI) for a
potential investment from a Chinese power service provider.
The Straits Times relates that the announcement, issued on SGX
after midnight on June 14, came ahead of a June 17 deadline to sign
a binding agreement with United Arab Emirates utility Utico for its
$400 million investment.
According to the report, the embattled company is in talks with at
least seven investors for a potential cash infusion, and plans to
enter into a binding term sheet with one of them by mid-June. Its
court-approved debt moratorium will end on August 2.
When asked on June 15, Hyflux declined to reveal details of the
potential investment, and whether the Chinese investor is among the
seven mentioned at a court hearing on May 29, The Straits Times
reports.
It would only say that the investor is a subsidiary of a
state-owned enterprise that provides power services, and its
holding company provides expertise in wind and solar energy
solutions, nuclear industry, medical technology and agriculture,
the report relates.
The LOI is subject to regulatory clearance, due diligence and the
execution of a binding agreement on mutually agreeable terms.
The Straits Times says the Chinese investor has executed a
non-disclosure agreement, commenced preliminary due diligence on
the group, and also reserved its right to terminate discussions if
a judicial manager or liquidator is appointed over Hyflux or its
subsidiaries.
Hyflux added that it is continuing its engagement with all
potential investors, the report adds.
The distressed firm has prioritised discussions with investors that
are willing to keep the Hyflux group intact, as opposed to those
that prefer to "cherry-pick" parts of its business, Hyflux lawyer
Manoj Sandrasegara said at the May 29 hearing, according to The
Straits Times.
Apart from Utico, Mauritius-based investment fund Oyster Bay Fund
is in advanced talks on a binding agreement for up to $500 million,
says The Straits Times.
A third potential investor, said to be a large desalination
company, had issued a letter of interest for certain assets in
Algeria, Oman, the Middle East and North Africa.
Four more companies are also in discussions over a potential
investment, the report notes. They are a large power sector player
in Asia looking to merge with Hyflux group, a fund whose corporate
strategy included turning around distressed firms, a major
Asia-based nuclear and civil engineering contractor, and a major
waste treatment player.
The Straits Times says Hyflux will meet stakeholders and draw up
terms of a restructuring scheme by the end of this month, and aims
to apply for leave to convene scheme meetings for creditors in
July.
According to The Straits Times, Hyflux had asked on May 29 for a
four-month extension on its debt moratorium, saying it was in
discussions with other potential investors.
But High Court Justice Aedit Abdullah said he was "concerned about
giving a four-month (extension) at a go", maintaining that the
company needs to be kept on a tight leash, the report relates.
That said, he told Hyflux to "assure the investors I will be
amenable, if progress continues to be made, to a further two-month
extension" beyond August 2.
The High Court will hear an update on Hyflux's restructuring
process that day, and the company is expected to apply for its
moratorium to be extended, The Straits Times notes.
About Hyflux
Singapore-based Hyflux Ltd -- https://www.hyflux.com/ -- provides
various solutions in water and energy areas worldwide. The company
operates through two segments, Municipal and Industrial. The
Municipal segment supplies a range of infrastructure solutions,
including water, power, and waste-to-energy to municipalities and
governments. The Industrial segment supplies infrastructure
solutions for water to industrial customers. It employs 2,300
people worldwide and has business operations across Asia, Middle
East and Africa.
As reported in the Troubled Company Reporter-Asia Pacific on May
24, 2018, Hyflux Ltd. said that the Company and five of its
subsidiaries, namely Hydrochem (S) Pte Ltd, Hyflux Engineering Pte
Ltd, Hyflux Membrane Manufacturing (S) Pte. Ltd., Hyflux Innovation
Centre Pte. Ltd. and Tuaspring Pte. Ltd. have applied to the High
Court of the Republic of Singapore pursuant to Section 211B(1) of
the Singapore Companies Act to commence a court supervised process
to reorganize their liabilities and businesses.
The Company said it is taking this step in order to protect the
value of its businesses while it reorganises its liabilities.
The Company has engaged WongPartnership LLP as legal advisors and
Ernst & Young Solutions LLP as financial advisors in this process.
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S O U T H K O R E A
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SUNGDONG SHIPBUILDING: Nears Bankruptcy as No Eligible Buyers Found
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Yonhap News Agency reports that Sungdong Shipbuilding & Marine
Engineering Co., a midsized local shipbuilder currently under court
receivership, is on the verge of declaring bankruptcy, industry
insiders said June 14, after it failed to find eligible buyers
ahead of a deadline for its sale.
Yonhap says the Changwon District Court, which manages Sungdong's
rehabilitation process, rejected bids from three companies,
questioning their funding capacity. It was the third time that the
sale of Sungdong had fallen through since it went up for sale in
October 2018, the report notes.
Sungdong was placed under court receivership in March 2018. The
court has been trying to find a new buyer for the shipbuilder, with
the deadline set for mid-October, Yonhap says.
According to Yonhap, industry observers said that there's now not
enough time left to complete the sale before the deadline.
"After takeover bids faltered for the third time, there's a high
possibility that the court will start taking steps for Sungdong's
bankruptcy and liquidation," Yonhap quotes Kim Hyun, an analyst at
Meritz Investment & Securities Co. said, as saying. "Its creditors
also reportedly decided not to give financial support."
Sungdong, whose shipyard is in Tongyeong, 330 kilometers south of
Seoul, entered the shipbuilding sector in 2004 and was one of the
world's top 10 shipbuilders in 2007, Yonhap discloses.
But following the global financial crisis and an industry slump, it
faced a liquidity crisis and was placed under creditor-led debt
restructuring programs in April 2010 before applying for the court
receivership, the report notes.
Creditors, led by Export-Import Bank of Korea, have so far injected
more than KRW2.7 trillion (US$2.3 billion) into the shipbuilder to
keep it afloat.
Yonhap adds that industry insiders said Sungdong will eventually
have to file for bankruptcy unless it receives financial support.
The shipbuilder has not secured new orders since November 2017, and
650 of its 770 workers have been placed on unpaid leave.
About Sungdong Shipbuilding
Sungdong Shipbuilding & Marine Engineering Co., Ltd. operates as a
shipbuilder. Its products include product carriers, crude oil
tankers, shuttle tankers, container ships, bulk carriers, floating
storage and offloading vessels, and deep-sea fishing vessels.
Sungdong Shipbuilding & Marine Engineering Co., Ltd. is a
subsidiary of The Export-Import Bank of Korea. Sungdong
Shipbuilding's plant is located in the southern port city of
Tongyeong.
Sungdong Shipbuilding was placed under its court receivership on
April 20, 2018.
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2019. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
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