/raid1/www/Hosts/bankrupt/TCRAP_Public/190819.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, August 19, 2019, Vol. 22, No. 165
Headlines
A U S T R A L I A
ALBATROSS BREWING: Up for Sale After Administration
BARKER AIR: Second Creditors' Meeting Set for Aug. 23
LIME STRUCTURAL: Second Creditors' Meeting Set for Aug. 26
N. SEYMOUR & SONS: First Creditors' Meeting Set for Aug. 27
REAL LINES: Court Appoints Clifton Hall as Liquidator
RESIMAC BASTILLE 2018-1NC: S&P Affirms B Rating on Class F Notes
SALLYROSE PTY: Second Creditors' Meeting Set for Aug. 26
Z5 VENTURE: First Creditors' Meeting Set for Aug. 26
C H I N A
CENTRAL CHINA REAL: Fitch Rates $300MM Sr. Notes Due 2022 'BB-'
DALIAN WANDA: Fitch Affirms BB+ LongTerm IDR, Outlook Stable
FUFENG GROUP: Fitch Affirms BB+ LongTerm IDR, Outlook Stable
FUJIAN ZHANGLONG: Fitch Gives BB+(EXP) Rating to New Unsec. Bonds
KANGMEI PHARMACEUTICAL: Regulator Penalizes 22 Employees
I N D I A
AMTEK AUTO: NCLAT Declines to Extend Insolvency Period
CHEMIETRON CLEAN: CARE Keeps D on INR6.46cr Loans in NonCooperating
CHENNAMANAGATHIHALLI SOLAR: CARE Moves D Rating to Not Cooperating
CHIKKAHALLI SOLAR: CARE Keeps D on INR14cr Loans in Non-Cooperating
HIREHALLI SOLAR: CARE Moves B on INR15.3cr Loans to Non-Cooperating
HUKKERI SOLAR: CARE Keeps D on INR9cr Loans in Non-Cooperating
INDIABULLS HOUSING: Moody's Cuts CFR to Ba2 & Alters Outlook to Neg
INFISSI FENESTRATION: CARE Cuts Rating on INR8.75cr Loan to 'B'
ISHWAR GINNING: CARE Keeps D on INR12cr Loans in Not Cooperating
ISHWAR OIL: CARE Keeps D on INR5.5cr Loans in Non-Cooperating
JECRC UNIVERSITY: CARE Keeps D on INR105cr Loans in Non-Cooperating
JM FERRO: CARE Keeps D on INR19.5cr Loans in Non-Cooperating
KARUTURI GLOBAL: Initiates Corporate Insolvency Proceedings
KURUGUNDA SOLAR: CARE Migrates Rating on INR13.50cr Loan to B
LAVASA CORP: CARE Reaffirms D Rating on INR547.81cr Loan
MAHALAXMI BUILDERS: CARE Moves D on INR14cr Loans to NonCooperating
N&N CONSTRUCTIONS: CARE Keeps D on INR12cr Debt in Non-Cooperating
P PADMA RURAL: CARE Lowers Rating on INR9.79cr Loan to D
PATCO POLYPACK: CARE Lowers Rating on INR8.6cr Loan to B
R M ENTERPRISE: CARE Keeps D on INR7.5cr Loans in Non-Cooperating
SANGHAVI JEWEL: CARE Lowers Rating on INR78.71cr Loan to 'D'
UDUPI DEVELOPERS: CARE Keeps D on INR14cr Loans in Non-Cooperating
YARGNAVI SOLAR: CARE Moves D on INR12.63cr Loans to Non-Cooperating
I N D O N E S I A
DSSP POWER: Fitch Withdraws B+(EXP) on New $350MM Notes
GAJAH TUNGGAL: Moody's Lowers CFR to B3 & Alters Outlook to Stable
N E W Z E A L A N D
MTF RAMBLER: Fitch Assigns BB+ Rating on Class E Notes
Q CARD: Fitch Assigns Bsf Rating on Class F-2019-1 Notes
S I N G A P O R E
HYFLUX LTD: To "Engage Exclusively" with Utico Until August 26
SK JEWELLERY: Appoints Liquidators for Closing of Bullion Unit
- - - - -
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A U S T R A L I A
=================
ALBATROSS BREWING: Up for Sale After Administration
---------------------------------------------------
BrewsNews reports that offers for Melbourne brewery and taphouse
Albatross Brewing are being welcomed by administrators after the
business became insolvent.
Administrator Philip Hosking from Sydney insolvency accountants at
Helm Advisory was called in to the business in June, the report
discloses.
At that time, Albatross founder and majority shareholder Steve
Laughlin reportedly acknowledged the company's "deteriorating
financial position."
According to BrewsNews, the administrators said that the company
faced insolvency as a result of poor financial management, as well
as saturation and competition in the craft brewing market.
A Deed of Company Arrangement (DOCA) was initially suggested by the
administrator, the report says.
A DOCA would save the company from liquidation, putting control of
Albatross back in the hands of Laughlin through an alternative
company, Kamehameha Enterprises, which was set up on June 25,
according to ASIC filings, to enable the company to continue
trading, BrewsNews relays.
However no beer has been produced in the administration period, as
Kamehameha did not have an appropriate liquor licence, and it has
not paid its deed licence fee - which enables it to trade under the
Albatross name - at all. This arrangement has now been terminated.
Its lease for the Mordialloc site has also been terminated.
BrewsNews says the financial terms of the DOCA stipulated that as
part of a 'Deed Fund' AUD80,000 would be paid to creditors within
60 days.
Under the DOCA, priority creditors will receive a full return (100
cents in the dollar) and between 20 and 100 cents in the dollar for
unsecured creditors. If a DOCA payment is missed, the company will
automatically be wound up, the report states.
The administrator also raised concerns that Mr. Laughlin had the
capacity to go through with the DOCA, saying there was a "high
degree of uncertainty" that contributions would be paid into the
Deed Fund, relays BrewsNews.
According to the report, Mr. Hosking said he had also received a
number of complaints from creditors with respect to the director's
alleged misconduct. If the company enters liquidation, he said he
would be required to file a report with ASIC, which could affect
Laughlin's future directorship prospects.
In a rare move, the administrator suggested that the best course of
action would be for the company to be wound up if the business
cannot be sold, BrewsNews reports.
An initial meeting of creditors to discuss the DOCA on July 24 was
then postponed after surprise interest from a prospective buyer,
the report notes.
BrewsNews says the administrators has recently advised that a
further two interested parties asked for information, but there has
been no expression of interest in the purchase of the business so
far. One prospective buyer has subsequently withdrawn its
interest.
The business may still be sold by a liquidator in the event that
creditors vote to reject the DOCA and wind up the company at the
meeting set for August 20, and there is no further interest
regarding a potential acquisition, the report notes.
Albatross produced beers and ciders for New South Wales customers,
and provided contract brewing services to enable other brewers to
brew beers using their equipment, previously under the De Havilland
Brewing brand.
BARKER AIR: Second Creditors' Meeting Set for Aug. 23
-----------------------------------------------------
A second meeting of creditors in the proceedings of Barker Air
Services Pty Ltd has been set for Aug. 23, 2019, at 10:00 a.m. at
the offices of Deloitte Financial Advisory Pty Ltd, Eclipse Tower,
Level 19, at 60 Station Street, in Parramatta, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Aug. 22, 2019, at 4:00 p.m.
David Ian Mansfield and Michael James Billingsley of Deloitte
Financial were appointed as administrators of Barker Air on July
25, 2019.
LIME STRUCTURAL: Second Creditors' Meeting Set for Aug. 26
----------------------------------------------------------
A second meeting of creditors in the proceedings of Lime Structural
Solutions Pty Ltd has been set for Aug. 26, 2019, at 11:00 a.m. at
Level 9, at 66 Clarence Street, in Sydney, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Aug. 23, 2019, at 4:00 p.m.
Liam Bailey of O'Brien Palmer was appointed as administrator of
Lime Structural on
July 22, 2019.
N. SEYMOUR & SONS: First Creditors' Meeting Set for Aug. 27
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of N. Seymour &
Sons Pty Ltd will be held on Aug. 27, 2019, at 11:00 a.m. at the
offices of SV Partners, at 22 Market Street, in Brisbane,
Queensland.
Terrence John Rose of SV Partners was appointed as administrator of
N. Seymour on Aug. 15, 2019.
REAL LINES: Court Appoints Clifton Hall as Liquidator
-----------------------------------------------------
Daniel Lopresti of Clifton Hall was appointed liquidator of Real
Lines Pty Ltd on Aug. 8, 2019 by, Order of the Federal Court of
Australia.
RESIMAC BASTILLE 2018-1NC: S&P Affirms B Rating on Class F Notes
----------------------------------------------------------------
S&P Global Ratings affirmed its ratings on various classes of
residential mortgage-backed securities (RMBS) in the RESIMAC
Bastille Trust - RESIMAC Series 2018-1NC, RESIMAC Triomphe Trust -
RESIMAC Premier Series 2017-1, RESIMAC Triomphe Trust - RESIMAC
Premier Series 2018-1, and RESIMAC Triomphe Trust - RESIMAC Premier
Series 2018-2 transactions. At the same time, S&P removed the
"under criteria observation" (UCO) identifiers from the ratings.
The rating affirmations include the RESIMAC Triomphe Trust –
Resimac Premier Series 2018-2 class AB and class B notes, which
remain on CreditWatch with negative.
S&P said, "We placed our ratings on the notes under criteria
observation following the release of our "Counterparty Risk
Framework: Methodology And Assumptions" on March 8, 2019. We
removed the UCO identifier following the execution of new
cross-currency swap documentation that is consistent with our
criteria."
RATINGS AFFIRMED AND REMOVED FROM UCO
RESIMAC Bastille Trust – RESIMAC Series 2018-1NC
Class Rating
A1 AAA (sf)
A2 AAA (sf)
AB AAA (sf)
B AA (sf)
C A (sf)
D BBB (sf)
E BB (sf)
F B (sf)
RESIMAC Triomphe Trust – RESIMAC Premier Series 2017-1
Class Rating
A1a AAA (sf)
A1b AAA (sf)
A2 AAA (sf)
AB AAA (sf)
B AA (sf)
C A (sf)
D BB (sf)
RESIMAC Triomphe Trust – RESIMAC Premier Series 2018-1
Class Rating
A1 AAA (sf)
A2 AAA (sf)
A3a AAA (sf)
A3b AAA (sf)
AB AAA (sf)
B AA (sf)
C A (sf)
D BB+ (sf)
RESIMAC Triomphe Trust – RESIMAC Premier Series 2018-2
Class Rating
A1a AAA (sf)
A1b AAA (sf)
A2 AAA (sf)
AB AAA (sf)/Watch Neg
B AA (sf)/Watch Neg
C A (sf)
D BBB (sf)
E BB (sf)
F B (sf)
SALLYROSE PTY: Second Creditors' Meeting Set for Aug. 26
--------------------------------------------------------
A second meeting of creditors in the proceedings of Sallyrose Pty
Ltd, trading as Sallyrose Boutique, has been set for Aug. 26, 2019,
at 11:00 a.m. at the offices of Cor Cordis, Level 19, Waterfront
Place, at 1 Eagle Street, in Brisbane, Queensland.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Aug. 23, 2019, at 4:00 p.m.
Darryl Kirk of Cor Cordis was appointed as administrator of
Sallyrose Pty on June 24, 2019.
Z5 VENTURE: First Creditors' Meeting Set for Aug. 26
----------------------------------------------------
A first meeting of the creditors in the proceedings of Z5 Venture
Capital Pty Ltd will be held on Aug. 26, 2019, at 11:00 a.m. at the
offices of BRI Ferrier (NSW) Pty Ltd, Level 30, Australia Square,
at 264 George Street, in Sydney, NSW.
Brian Raymond Silvia & Geoffrey Peter Granger of were appointed as
administrators of BRI Ferrier on Aug. 14, 2019.
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C H I N A
=========
CENTRAL CHINA REAL: Fitch Rates $300MM Sr. Notes Due 2022 'BB-'
---------------------------------------------------------------
Fitch Ratings has assigned Central China Real Estate Limited's
(CCRE; BB-/Stable) USD300 million 6.875% senior notes due 2022 a
final rating of 'BB-'. The notes are rated at the same level as
CCRE's senior unsecured rating because they constitute its direct
and senior unsecured obligations.
The assignment of the final rating follows the receipt of final
documentation conforming to information already received. CCRE
intends to use the net proceeds from the note issue for
refinancing. The final rating is in line with the expected rating
assigned on 1 August 2019.
CCRE's ratings are supported by the company's position as a leading
real-estate developer in China's Henan province, with broad
housing-product diversification and a growing non-property
development business in rental properties and project management.
The ratings also reflect the company's healthy financial profile,
with leverage, measured by net debt/adjusted inventory that
proportionately consolidates its joint ventures, falling to 31% by
end-2018, from 34% at end-2017.
KEY RATING DRIVERS
Strong Presence in Henan: Fitch believes CCRE's record supports its
plan to increase its market share in Henan to 10%-13% in the next
one to three years, from 9% in 2018. CCRE has been developing
residential properties almost entirely in the province for more
than 27 years and it has projects in 18 prefecture-level cities and
an established reputation. CCRE's lower average selling price (ASP)
of CNY7,284 a sq m in 2018, compared with peers' ASP of above
CNY11,000/sq m, reflects its wide product exposure, which includes
projects in smaller cities.
Sales, Market Share to Increase: CCRE's total contracted sales in
2018 were strong at CNY53.7 billion, rising by 76.5% from 2017, and
continued increasing in 1H19 by 24% yoy to CNY39.6 billion. This
was driven by a larger share of sales from lower-tier cities in
Henan. Fitch expects CCRE's annual contracted sales to increase to
CNY61 billion-68 billion in 2019-2020, while the company's market
share in Henan province is likely to expand to more than 10% in the
medium term. The company remained the largest developer in the
province in 2018.
CCRE's expansion into project management of residential-property
developments in the province's smaller towns drove the increase in
EBITDA from non-development businesses. CCRE had 110 projects under
this asset-light business model as of December 2018. The company
expects these to provide CNY3.5 billion of revenue over the next
three to four years. Revenue from the asset-light model more than
doubled to CNY675 million in 2018, with a gross margin of 91%.
Aggressive Land Acquisitions Drive Leverage: CCRE acquired 13.5
million sq m in attributable gross floor area of land for CNY17.0
billion in 2018. The company achieved a land acquisition/contracted
sales value ratio of 0.28x in 2018, in line with the 0.2x-0.3x in
previous years. Fitch expects the acquisitions to drive up the
company's leverage, measured by net debt/adjusted inventory on a
proportionate consolidation basis, to above 33% in 2019-2020, from
about 31% in 2018. Leverage fell in 2018 from 34% in 2016-2017
thanks to strong contracted sales growth.
Fitch believes CCRE's leverage will not rise above 40% as the
company has the flexibility to slow down its land acquisitions due
to a bigger attributable land bank of 34.7 million sq m that is
sufficient for development over the next five to six years.
Stabilising Margin: Fitch estimates CCRE's EBITDA margin (deducting
capitalised interest from cost of sales) to be higher than 20% in
2019. The EBITDA margin fell to 16% in 2017, from 17% in 2016,
affected by CCRE's strategy to accelerate inventory clearance in
1H15. Higher contracted sales than revenue also squeezed the EBITDA
margin as the selling, general and administrative expenses, which
are more a function of its contracted sales, are apportioned to a
much lower level of revenue. Fitch expects CCRE's EBITDA margin to
expand when it starts to recognise revenue from previous contracted
sales.
DERIVATION SUMMARY
CCRE's contracted sales of CNY53.7 billion in 2018 are comparable
with those of 'BB-' rated peers, although it has maintained a
healthier financial profile. Yuzhou Properties Company Limited
(BB-/Stable) had contracted sales of CNY56.0 billion in 2018 and
KWG Group Holdings Limited (BB-/Stable) had CNY65.5 billion.
CCRE's leverage ratio, measured by net debt/adjusted inventory on a
proportionately consolidated basis, was 31% in 2018, well below the
'B+' and 'B' rated peers' ratio of 40%-60% and in line with 'BB-'
rated peers' ratio of 20%-45%. However, CCRE's leverage ratio may
remain at 31%-33% in 2019-2020.
CCRE's EBITDA margin of 18% in 2017 was near the bottom of the
'BB-' peers' range of 18%-25% due to the company's destocking
strategy. However, Fitch expects CCRE's EBITDA margin to rise to
24%-25% in 2019-2020 as revenue from projects with a higher
contracted sales ASP will start to be recognised and there will
also be revenue increases from the company's higher-margin rental
property and project-management businesses.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Total contracted sales by gross floor area to increase by
13% in 2019 and 11% in 2020
- ASP for contracted sales to increase by up to 1% a year in
2019-2020
- EBITDA margin (excluding capitalised interest) to reach 19%
in 2018 and 24%-25% in 2019-2020
- Land acquisition budget to be 22%-24% of total contracted
sales for 2019-2020 for the company to maintain its land
bank at approximately five years of contracted sales
(32% in 2018).
RATING SENSITIVITIES
Developments That May, Individually or Collectively, Lead to
Positive Rating Action
- Leverage, measured by net debt/adjusted inventory on a
proportionately consolidated basis, persistently at 30% or
below, while the company maintains its leading position in
Henan province
Developments That May, Individually or Collectively, Lead to
Negative Rating Action
- A decline in contracted sales for a sustained period
- Leverage at 40% or above for a sustained period
- EBITDA margin at below 18% for a sustained period
LIQUIDITY AND DEBT STRUCTURE
Ample Liquidity: The company had total cash of CNY17.8 billion
(including restricted cash of CNY3.6 billion) as of December 2018,
sufficient to cover short-term debt of CNY5.3 billion maturing in
one year.
Diversified Funding Channels: CCRE had total debt of CNY19.8
billion as of December 2018, consisting of bank loans, other loans,
senior notes and corporate bonds. There were unutilised banking
facilities of CNY66.6 billion. CCRE is listed on the Hong Kong
stock exchange and raised about CNY800 million in an equity
placement in 1H18.
Stable Funding Cost: The average cost of borrowing was 7.0% in
2018, higher than the 6.8%-6.9% in 2016-2017.
DALIAN WANDA: Fitch Affirms BB+ LongTerm IDR, Outlook Stable
------------------------------------------------------------
Fitch Ratings has affirmed Dalian Wanda Commercial Management Group
Co., Ltd.'s Long-Term Foreign-Currency Issuer Default Rating,
senior unsecured rating and the ratings on its outstanding US
dollar senior notes at 'BB+'. The Outlook on the IDR is Stable.
Fitch thinks that Wanda Commercial's Standalone Credit Profile
remains strong at 'bbb+', due to robust rental and management fee
revenue generation and continued Wanda Plaza expansion. However,
Wanda Commercial's rating is constrained by the consolidated credit
profile of Dalian Wanda Group Co., Limited (Wanda Group), which
Fitch assesses to be at 'bb+' due to weak entertainment-related
businesses and the higher leverage of the group. Wanda Group owns
43.7% of Wanda Commercial.
KEY RATING DRIVERS
Wanda Group Constrains Rating: The parent and subsidiary linkage
between Wanda Commercial and Wanda Group is assessed as 'Moderate',
which under Fitch's Parent and Subsidiary Rating Linkage criteria,
would result in Wanda Commercial's ratings being rated at the
weaker consolidated credit profile of its parent at 'bb+'. Wanda
Group's consolidated credit profile is mainly driven by Wanda
Commercial and Beijing Wanda Cultural Industry Group Co., Ltd
(Wanda Culture).
Wanda Commercial contributed around 80% and Wanda Culture 20% of
the group's consolidated EBITDA in 2018. Fitch estimates that Wanda
Group has a 'bb+' consolidated credit profile, due mainly to Wanda
Culture's high leverage and Wanda Group's limited transparency of
its rather aggressive business strategy. Fitch estimates Wanda
Culture's consolidated total adjusted debt/EBITDAR was around 8.5x
at end-2018 versus 10.0x at end-2017, and its operating
EBITDAR/interest paid + rents has been around 1.4x at end
2017-2018, mainly driven by AMC Entertainment Holdings, Inc.'s
financials. Fitch affirmed and withdrew the rating of AMC, which
accounts for around 50% of Wanda Culture's EBITDA, at 'B' with
Stable Outlook in December 2018.
Standalone Credit Profile 'bbb+': Wanda Commercial has a strong
property portfolio in line with 'A' rated property investment
companies due to its large size, asset diversification, and strong
operational performance throughout business cycles. It is the
largest shopping mall owner in China and one of the largest
commercial property owners rated by Fitch. It owned 280 Wanda
Plazas in China, with total leasable floor area (LFA) of 28 million
sq m at end-2018. The Wanda Plazas generated more than CNY30
billion in rental and management fee income in 2018, representing a
22.8% increase yoy that is driven by 6% rise in average rent to
CNY110.6/sq m a month and LFA increase of 18%. Wanda Commercial
aims to open another 43 shopping malls in 2019, of which 70% will
be through asset-light cooperative projects model. Wanda
Commercial's business profile is however constrained by limited
operational information disclosures.
Fitch estimates that the company's rental and management revenue
will continue to increase by around 10% in 2019-2020, mainly
through LFA expansion. Fitch estimates that Wanda Commercial's
recurring EBITDA was CNY21.3 billion, including both Wanda
Commercial's mall and hotel operations, in 2018. Its recurring
EBITDA net interest coverage was 2.3x at end-2018, and Fitch
expects it to increase and then stabilise at above 2.6x in 2020,
commensurate with 'bbb+' credit strength. Wanda Commercial's net
debt/recurring EBITDA increased slightly to 5.1x by end-2018 from
4.7x at end-2017, after accounting for only 40% of its CNY16.6
billion wealth management product investment as cash. Fitch expects
net debt/recurring EBITDA will be sustained below 6.0x after such
adjustment in 2019-2020.
Asset-light Strategy Speed-Up: Fitch expects Wanda Commercial to
add 30 asset-light cooperative projects each year in 2020-2021,
charging 30% of net rent from the mall owners each year. It already
has plans to add 29 cooperative projects in 2019 after speeding up
the transition in 2018 with 18 compared with five in 2017. Wanda
Commercial had a total of 42 unconsolidated and non-self-owned
asset-light malls in operation as of end-2018: 19 projects in four
asset packages with CITIC Trust Co., Ltd., Minsheng Trust Co., Ltd.
and Pearl River Life Company Limited; as well as 23 cooperative
projects.
The asset-light cooperative projects will help Wanda Commercial
maintain revenue growth at around 10%, but will lower the company's
current rental gross profit margin below 75% in the medium-term
from 80%, as cooperatives usually have a gross profit margin of
around 40%, after deducting the lease expenses as cost of sales.
Property Development Exit Transfers Risks: Fitch thinks that Wanda
Commercial's exit from the volatile development business by 2019 is
credit-positive. The exit reduces its own policy and market risks,
and it will not have to maintain an excessively high cash balance
in preparation for land replenishment. This then helps bolster its
recurring EBITDA interest coverage. Wanda Commercial estimates it
will generate CNY30 billion in contracted sales and incur around
CNY20 billion in construction costs for the remaining development
projects in 2019. Wanda Commercial will dispose of the rest of the
projects to Wanda Properties Group Co. Ltd. (established in 2018
and wholly owned by Wanda Group) by the end of 2019. This will
transfer the development business risk outside of Wanda Commercial,
but this business remains in the Wanda Group and still affects
Wanda Group's consolidated credit profile.
DERIVATION SUMMARY
Wanda Commercial's investment property portfolio is comparable with
those of major global investment property companies, such as Simon
Property Group, Inc. (A/Stable), Swire Properties Limited
(A/Stable) and Unibail-Rodamco SE (A-/Stable). Wanda Commercial's
investment property portfolio of over 280 retails malls is more
comparable with Simon Property, which has over 200 retail outlets.
Wanda Commercial's strong retail mall portfolio is in line with 'A'
rated property investment companies due to its large size, asset
diversification, and strong operational performance throughout
business cycles.
Wanda's credit metrics are weaker than the three peers' as its
recurring EBITDA interest coverage of 2.0x-3.0x is lower than its
peers' average of more than 5.5x. Wanda's rating is also
constrained by the weaker consolidated credit profile of its parent
Wanda Group due to its moderate linkage with its parent, according
to Fitch's Parent and Subsidiary Rating Linkage criteria. No
country-ceiling or operating environment aspects affect the
rating.
KEY ASSUMPTIONS
- Wanda Commercial will open 43 to 45 new Wanda Plazas in 2019
with around 80,000 sqm of LFA each, out of which 30 malls
will be under asset-light business model.
- Asset-heavy shopping malls will have a gross profit margin
of around 80% and asset-light shopping malls will have a
gross profit margin of around 40%.
- Rental and property management fee income will increase by
11%-12% in 2019-2020.
- Capex of around CNY13 billion each year in 2019-2020.
- Wanda Commercial will wind down its property development
business before the end of 2019.
- Available cash balance (including 40% of wealth management
products) to be maintained at around CNY70 billion in
2019-2020.
RATING SENSITIVITIES
Developments That May, Individually or Collectively, Lead to
Positive Rating Action
- Improvement in Wanda Group's information transparency or
consolidated credit profile
- IPO of Wanda Commercial that establishes effective
ringfencing and improves corporate governance
Developments That May, Individually or Collectively, Lead to
Negative Rating Action
- Inability to execute asset-light business model that
leads to net debt/recurring EBITDA above 7x for a sustained
period
- Wanda Commercial's recurring EBITDA/net interest below 2.5x
after 2020 for a sustained period
- Deterioration in Wanda Group's consolidated credit profile
LIQUIDITY AND DEBT STRUCTURE
Sufficient Liquidity: Wanda Commercial had more than CNY85 billion
in available cash at end-2018, after including CNY1.3 billion
pledged bank deposits to obtain borrowings, and 40% of CNY16.6
billion wealth management products - mostly issued by commercial
banks - with less than a year maturity. The available cash is
sufficient to cover its CNY47.8 billion in short-term debt,
including puttable onshore bonds in 2019 and principal value
adjustment. Wanda Commercial has kept its offshore funding channel
open and issued a new offshore USD300 million 6.25% 363-day notes
due in February 2020.
FUFENG GROUP: Fitch Affirms BB+ LongTerm IDR, Outlook Stable
------------------------------------------------------------
Fitch Ratings has affirmed China-based monosodium glutamate (MSG)
and xanthan gum producer Fufeng Group Limited's Long-Term Issuer
Default Rating and senior unsecured rating affirmed at 'BB+'. The
Outlook is Stable.
KEY RATING DRIVERS
MSG Margin Recovery in 1H19: Fufeng's MSG business achieved a
better performance in 1H19 due to improved supply discipline from
other industry participants which allowed average selling prices of
MSG to remain at robust levels. This has led to an increase in
gross profit (GP) and gross profit margins (GPM) of the MSG
business, which accounts for more than half of Fufeng's revenues
and GP. However, domestic corn prices, which account for half of
Fufeng's total production costs, have started to increase again in
2Q19, which may adversely affect Fufeng's GP and GPM in 2H19.
Margin Pressure Persists: Fitch believes Fufeng's margin
improvement in 1H19 may be temporary. China has been directing
farmers (through higher subsidies) to plant more soybeans to reduce
its reliance on imports due to the trade war between China and the
US. This has led to a reduction in planting levels of other crops,
such as corn, which may adversely affect long-term supply.
Furthermore, Fufeng has not been able to benefit from lower
international corn prices due to import tariffs. This may put
pressure on Fufeng's GPM in the long run should domestic corn
prices remain at an elevated level for an extended period.
Subdued Growth from Non-MSG: Fitch expects the sales growth
contributed by amino acid products other than the core MSG products
to slow due mainly to weaker threonine demand, which is used mostly
as an animal feed additive, because of the outbreak of African
swine fever in China. Nonetheless, management remains focused on
developing and strengthening its high-end amino acid segment, which
is used primarily in the pharmaceutical, skin care and health and
wellness industries, to diversify revenue and increase the overall
GPM.
Land Disposal Strengthens Balance Sheet: Fufeng announced in 2018
that it entered into a disposal agreement to sell its land for an
aggregate consideration of CNY1.8 billion, with an estimated net
gain of CNY1.0 billion. The land was held by Fufeng for investment
purposes and is not required for the development and growth of
Fufeng's core businesses. Fufeng received approximately CNY0.8
billion in 2018 and is due to receive the remaining CNY1 billion
remaining balance, which was booked as receivables at end-2018, in
2019.
Financial Profile Remains Solid: Fitch still forecasts Fufeng's
fund from operations (FFO) adjusted net leverage ratio to remain
below 1.0x, even though the company is seeking to build overseas
production facilities, possibly in the US. Its forecast is based on
Fufeng's healthy annual cash generation and its huge cash balance
on hand. Fufeng's net leverage ratio increased slightly to 0.7x in
2018, from 0.6x in 2017, as Fufeng completed its Qiqihar plant
phase-two construction in 2018 with part of the land disposal
proceeds it received.
DERIVATION SUMMARY
Fufeng's business scale is generally larger than other 'BB'
category peers and also benefits from being the top global producer
for MSG. This should improve with increasing diversification across
other amino acid products, although it will take time. Fufeng also
has lower leverage relative to peers, and Fitch expects FCF to turn
positive with lower capex requirements from 2019. The closest peer
among upstream food producers would be Indonesia poultry producer
PT Japfa Comfeed Indonesia TbK (BB-/Stable). Fufeng's higher rating
is justified by its stronger market position in its respective
market, which is reflected in its higher EBITDA margin and stronger
financial profile whereby Fufeng has lower leverage and higher
coverage than Japfa.
Fitch has also compared Fufeng with two other 'BB' category peers
in China, West China Cement Limited (BB-/Positive) and 361 Degrees
International Limited (BB-/Stable). Fufeng has a stronger business
profile than West China Cement due to its market position and has a
larger business scale. Fufeng has lower net leverage at below 1.0x
while West China Cement was 1.3x as of end-2018. 361 Degrees'
rating is supported mainly by its net cash position but constrained
by the company's small scale, weakening market position relative to
its peers, and volatile working capital which has at times
adversely affected its FCF generation.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Low single digit revenue growth from 2019 to 2022
- Annual capex of CNY1.5 billion from 2019 to 2022
- Dividend payout ratio: 30% from 2019 to 2022
RATING SENSITIVITIES
Developments That May, Individually or Collectively, Lead to
Positive Rating Action
- No positive rating action will be considered until Fufeng
increases significantly its scale and improves its product
diversification
Developments That May, Individually or Collectively, Lead to
Negative Rating Action
- FFO adjusted net leverage above 1.0x (2018: 0.7x) for a
sustained period
- Negative FCF for a sustained period
- Sustained loss in MSG market share or sustained structural
decline in MSG demand
LIQUIDITY
Sufficient Liquidity: Fufeng had readily available cash CNY2.6
billion and unused bank facilities of over CNY3 billion as of
end-2018 versus short-term borrowings of CNY1.5 billion.
FUJIAN ZHANGLONG: Fitch Gives BB+(EXP) Rating to New Unsec. Bonds
-----------------------------------------------------------------
Fitch Ratings has assigned Fujian Zhanglong Group Co., Ltd.'s
(BB+/Stable) proposed US dollar senior unsecured bonds an expected
rating of 'BB+(EXP)'. The proposed bonds will be issued directly by
Zhanglong and the proceeds will be used for refinancing.
The proposed bonds are rated at the same level as Zhanglong's
Issuer Default Rating as they represent direct, unconditional and
unsecured obligations of Zhanglong.
The final rating on the proposed bonds is contingent upon the
receipt of final documents conforming to information already
received.
Key Rating Drivers
Strong Government Support: Zhanglong's rating takes into
consideration full ownership and board control by Zhanghzou
municipal government, a 'Strong' government support record and
support expectations, 'Moderate' socio-political and 'Strong'
financial implications for Zhangzhou municipality if the issuer
defaults. The issuer carries out sewage treatment and water supply
to urban areas and participates in infrastructure developments. The
government could temporarily take over these operations if the
issuer experienced financial distress. However, as Zhanglong is one
of the municipality's largest government-related entities, its
financial distress is likely to affect the availability or cost of
funding to the city and its government-owned entities.
'b' Standalone Credit Profile: Fitch considers Zhanglong's
Standalone Credit Profile to be in the 'b' category at best due to
its weak revenue defensibility, operating risk and financial
profile.
RATING SENSITIVITIES
The ratings could change if Fitch revises its perception of
Zhangzhou municipality's ability to provide subsidies, grants or
other legitimate resources allowed under the country's policies and
regulations.
Stronger incentive for Zhangzhou municipality to support Zhanglong,
including a better support record as well as stronger
socio-political or financial implications of a default by
Zhanglong, may trigger positive rating action. Conversely, the
rating may be downgraded if there is a significant weakening in the
socio-political and financial implications of a default, a weaker
support record by the municipality or a dilution of the
government's shareholding.
An improvement of Zhanglong's Standalone Credit Profile or
liquidity position would also affect the ratings.
Any change in Zhanglong's IDR will result in a similar change in
the rating of the proposed bonds.
KANGMEI PHARMACEUTICAL: Regulator Penalizes 22 Employees
--------------------------------------------------------
Wang Juanjuan and Han Wei at Caixin Global report that China's top
securities regulator on August 16 penalized 22 employees, including
top executives of one of the country's biggest listed drugmakers
for financial reporting fraud involving CNY88.6 billion (US$12.6
billion) of overstatements between 2016 and 2018.
Caixin relates that the individuals were fined a combined CNY5.95
million for their role in the case involving Shanghai-listed
traditional Chinese medicine supplier Kangmei Pharmaceutical Co.
Ltd. Among those facing penalties are Chairman Ma Xingtian, Vice
Chairwoman Xu Dongjin and Deputy General Manager Qiu Weixi. The
penalties include fines and life-long bans from entering the
securities markets, according to the China Securities Regulatory
Commission (CSRC).
Three other senior executives were also banned from markets,
including engaging in securities issuance, trading or other
intermediary services, or taking senior positions at listed
companies, the CSRC said, without naming the individuals or giving
a period for the bans.
As reported in the Troubled Company Reporter-Asia Pacific on May
15, 2019, Caixin Global said the auditor of Kangmei has been placed
under investigation by China's securities regulator, after the
drugmaker was suspected of fabricating a financial report.
GP Certified Public Accountants Co. Ltd. was put under probe by the
China Securities Regulatory Commission (CSRC) on May 10, a source
close to the accounting agency told Caixin.
According to Caixin, GP Certified is the auditor of Shanghai-listed
traditional Chinese medicine supplier Kangmei Pharmaceutical Co.
Ltd., which has itself been under investigation by the CSRC since
late December for allegedly violating information disclosure laws
and rules. Caixin related that the pharmaceutical company announced
at the end of last month that it was making massive corrections to
its financial report for 2017, including an overstatement of
CNY29.9 billion ($4.4 billion) in the company's cash holdings,
which is a new record of its kind according to Caixin's
calculation. Kangmei's stock is a component of MSCI Inc.'s global
indexes.
Kangmei Pharmaceutical Co., Ltd. produces and sells Chinese
medicines in China. It also offers chemical medicines and food
products; and operates hospitals and Chinese medicine pharmacies.
=========
I N D I A
=========
AMTEK AUTO: NCLAT Declines to Extend Insolvency Period
------------------------------------------------------
BloombergQuint reports that the National Company Law Appellate
Tribunal (NCLAT) on August 16 declined to extend the insolvency
period for Amtek Auto Ltd., setting the stage for liquidation of
the debt-ridden car-parts maker.
An appellate tribunal bench headed by Justice SJ Mukhopadhyay
ordered the National Company Law Tribunal to pass orders on
liquidation of Amtek Auto, which fell under debt after chasing a
string of overseas acquisitions, BloombergQuint relates.
"We're not inclined to give any direction as was sought for by the
'Committee of Creditors' nor inclined to exclude any period calling
for fresh 'Resolution Plan'," the NCLAT's judgment said,
BloombergQuint relays. "More than 270 days having passed, the
Adjudicating Authority will pass appropriate order of liquidation,
which will be in accordance with law."
BloombergQuint notes that the insolvency petition against Amtek
Auto was initiated on July 24, 2017, and the Committee of Creditors
approved the bid by U.K.-based Liberty House by a vote of 94.2
percent in April the following year. A second bid worth INR3,150
crore by Deccan Value Investor was withdrawn before the bid by
Liberty House was approved.
However, Liberty House withdrew its INR4,119-crore and refused to
furnish the required bank guarantees, the report says.
The committee in June this year sought to initiate a new round of
bidding by publishing a new information memorandum, BloombergQuint
recalls. The remaining bidder DVI argued that coming up with a new
set of eligibility criteria was designed to disqualify them from
the process.
BloombergQuint adds that the appellate tribunal had disallowed the
new round of bidding and asked the committee to consider the bid by
DVI while allowing it to revise its bid. However with the NCLAT's
order, the NCLT will have to pass orders on the company's
liquidation.
About Amtek Auto
Based in India, Amtek Auto Limited (BOM:520077) --
http://www.amtek.com/aal.php-- engages in automotive components
manufacturing and commercial sales. The Company is engaged in
forging, grey and ductile iron casting, gravity and high pressure
aluminum die casting and machining and sub-assembly. It has a
product portfolio with a range of engineered components, including
flywheel ring gears, machining, forging, casting aluminum and
casting iron. The Company supplies components for passenger cars,
light and heavy commercial vehicles, 2/3 wheelers, light weight
commercial vehicles and heavy weight commercial vehicles. The
Company has facilities across India, the United Kingdom, Germany,
Brazil, Italy, Mexico, Hungary and the United States. The Company
also manufactures components for non-auto sectors, such as the
railways, specialty vehicles, aerospace, agricultural and heavy
earth moving equipment.
In July 2017, NCLT had admitted insolvency proceedings initiated by
a consortium of banks led by Corporation Bank.
CHEMIETRON CLEAN: CARE Keeps D on INR6.46cr Loans in NonCooperating
-------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Chemietron
Clean Tech Private Limited (CCTPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 5.46 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Long-term Bank 1.00 CARE D/CARE D; ISSUER NOT
Facilities/ COOPERATING; Based on best
Short-term available information
Bank Facilities
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated June 4, 2018, placed the
rating(s) of CCTPL under the 'issuer non-cooperating' category as
CCTPL had failed to provide information for monitoring of the
rating as agreed to in its Rating Agreement. CCTPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
June 19, 2019, June 21, 2019, June 26, 2019. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
At the time of last rating on June 4, 2018 the following were the
rating weaknesses
Ongoing delays in debt servicing: CCTPL has been irregular in
servicing its debt obligation due to weak liquidity position of the
company.
Liquidity Analysis: The liquidity position remained weak marked by
cash and bank balance remained low at INR0.03 crore as on
March 31, 2018 while net cash flow from operating activities
remained at INR0.98 crore during FY18. Cash credit limit remains
fully utilized over the past twelve months ended October, 2015.
CCPL was incorporated in May, 2008 as a private limited company by
three promoters led by Mr Ashok Gupta (Age: 73 years). Mr Ashok
Gupta has a long industry experience of around 43 years. CCPL is
engaged in the business of manufacturing and trading of air filters
and air handling units. CCPL operates from its ISO 9001:2008
certified manufacturing facilities located at Ahmedabad (Gujarat).
CCPL is selling its clean room technology product under the brand
name of "Chemietron" and air filters under the brand name of
"Hygieno".
CHENNAMANAGATHIHALLI SOLAR: CARE Moves D Rating to Not Cooperating
------------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of
Chennamanagathihalli Solar Power Project LLP (CSPL) to Issuer Not
Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 13.85 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from CSPL to monitor the
rating(s) vide e-mail communications/letters dated April 30, 2019,
May 2, 2019, May 6, 2019 and May 8, 2019, May 31, 2019, June 3,
2019, June 5, 2019 and June 7, 2019, June 28, 2019, July 1, 2019,
July 3, 2019, July 05, 2019, July 15, 2019, July 23, 2019 and
numerous phone calls. However, despite CARE's repeated requests,
the firm has not been submitting monthly 'No Default Statement'
(NDS) for monitoring the ratings. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating. The rating on
Chennamanagathihalli Solar Power Project LLP bank facilities will
now be denoted as CARE B; Stable, ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
At the time of last rating on November 5, 2018 the following were
the rating strengths and weaknesses:
Key Rating Weaknesses
Ongoing dispute with KERC regarding the Tariff Rate: The operations
commenced on June 30, 2017 against the envisaged COD of Dec'16.
BESCOM had agreed to an extension of COD by 6 months with an agreed
rate of INR6.51 per unit. However, the same was disputed by KERC
(Karnataka Electricity Regulatory Commission). Presently, CSPPL has
been billing at tariff rate of INR4.36 per unit as against the PPA
rate INR8.4 per unit vide an interim order. The firm has taken up
the matter with KERC for revision in tariff and the matter is
pending.
Fixed cost associated with LLP agreement: The firm is required to
pay fixed amount of INR1.25/- unit of power generation to Mr
Mahesh, land owner. Furthermore, CSPPL has to pay O&M charges to
REL (Ravindra Energy Limited; group company) starting with INR0.31
crore in first year with 5% escalation each year. Such fixed
expenses are expected to impact profitability further for the
firm.
Climatic and technological risks: Achievement of desired CUF
(Capacity Utilization Factor) is subjected to change in climatic
conditions, amount of degradation of modules as well as
technological risks (limited track record of solar technology in
India).
Key Rating Strengths
Experience of the promoters with established track record in
renewable sector: CSPPL is promoted by Mr. Sidram Kaluti who is
also CEO of Ravindra Energy Limited (REL). REL (erstwhile Ravindra
Trading & Agencies Limited) was incorporated in 1980
and was promoted by the Murkumbi family of Shree Renuka Group. The
company currently has existing businesses under various
subsidiaries in coal trading, sugar trading and production and
solar pumps trading.
Power purchase agreement with Bangalore Electricity Supply Company
Limited (BESCOM): CSPL has entered into a longterm power purchase
agreement (PPA) for 25 years with Bangalore Electricity Supply
Company Limited (BESCOM) dated June 29, 2015 for supply of 3 MW
power.
Satisfactory operational performance of CSPPL in FY18 (Jul'17 to
Mar'18) & 5MFY19: Post commencement of operations in Jul'17, the
firm has generated 2.98 MU till Mar'18 and earned revenue of
INR2.55 crore. During 5MFY19 (from Apr'18 to Aug'18) the firm has
generated 1.83MU with an estimated revenue of 1.54 crore.
Government initiative in promoting solar projects: The Government
has set a solar power target of 100 GW to be achieved within 2022
and in line with promoting use of solar powers has come up with
various incentives and is actively encouraging the use of solar
power for both residential and commercial purposes.
Chennamanagathihalli Solar Power Projects (CSPL) was promoted by
Mr. Ravindra Gundappa Patil, MD of Ravindra Energy Limited, and Mr.
G Mahesha in the year 2016. CSPPL has 3MW grid connected solar
photovoltaic (PV) power plant at Chennamanagathihalli village,
Chitradurga district, Karnataka. CSPPL has entered into Limited
Liability Partnership agreement with, M/s. Ravindra Energy Limited,
Mr. Ravindra Gundappa Patil and Mr. G Mahesha (landowner).
CHIKKAHALLI SOLAR: CARE Keeps D on INR14cr Loans in Non-Cooperating
-------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Chikkahalli
Solar Power Project LLP (CSPPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 14.30 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from CSPPL to monitor the
rating(s) vide e-mail communications/letters dated April 30, 2019,
May 2, 2019, May 6, 2019 and May 8, 2019, May 31, 2019, June 3,
2019, June 5, 2019 and June 7, 2019, June 28, 2019, July 1, 2019,
July 3, 2019, July 5, 2019, July 15, 2019, July 23, 2019 and
numerous phone calls. However, despite CARE's repeated requests,
the firm has not been submitting monthly 'No Default Statement'
(NDS) for monitoring the ratings. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating. The rating on Chikkahalli
Solar Power Project LLP bank facilities will now be denoted as CARE
B; Stable; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
At the time of last rating on July 19, 2018 the following were the
rating strengths and weaknesses (updated for FY19
Provisionals available from the firm):
Key Rating Weaknesses
Delay in project execution: The operations commenced on May 8, 2017
against the envisaged COD of Jun'15. BESCOM had agreed to an
extension of COD by 6 months with an agreed rate of INR6.51 per
unit. However the same was disputed by KERC (Karnataka Electricity
Regulatory Commission). CSPPL has been pressed upon a tariff rate
of INR4.36 per unit as against the PPA rate INR8.4 per unit vide an
interim order. The firm has taken up the matter with KERC for
revision in tariff and the matter is pending.
Fixed cost associated with LLP agreement: The firm is required to
pay fixed amount of INR1.25 for every unit of power generation to
Mr. Venkatesh Chowdary, land owner. CSPPL has to pay O&M charges to
REL starting with INR0.31 crore in first year with 5% escalation
each year going forward. Such fixed expenses are expected to impact
profitability further for the firm.
Climatic and technological risks: Achievement of desired CUF going
forward would be subject to change in climatic conditions, amount
of degradation of modules as well as technological risks (limited
track record of solar technology in India).
Key Rating Strengths
Experience of the promoters with established track record in
renewable sector: CSPPL is promoted by Mr. R G Patil who is also a
Director of Ravindra Energy Limited (REL). REL (erstwhile Ravindra
Trading & Agencies Limited) was setup in 1980 and is promoted by
Murkumbi family of Shree Renuka Group. The company currently has
businesses under various subsidiaries in coal trading, sugar
trading and solar pumps trading. Satisfactory operational
performance of CSPPL in FY19 (Provisional): The firm has generated
1.77 MU during FY19 as against 1.00 MU in 10MFY18 and earned
revenue of INR1.55 cr in FY19 (Provisional) as against INR0.87 cr
in FY18.
Chikkahalli Solar Power Project LLP (CSPPL) is a limited liability
partnership firm started by Mr. H Venkatesh Chowdary and LIGGHT
Trust. CSPPL has 3 MW grid connected solar photovoltaic (PV) power
plant at Pavagada Taluka, Tumkur district, Karnataka. CSPPL has an
entered into Limited Liability Partnership agreement with Mr. H
Venkatesh Chowdary, M/s. Ravindra Energy Limited (REL).
HIREHALLI SOLAR: CARE Moves B on INR15.3cr Loans to Non-Cooperating
-------------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of
Hirehalli Solar Power Project LLP (HSPPL) to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 15.30 CARE B; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from HSPPL to monitor the
rating(s) vide e-mail communications/letters dated April 30, 2019,
May 2, 2019, May 6, 2019 and May 8, 2019, May 31, 2019, June 3,
2019, June 5, 2019 and June 7, 2019, June 28, 2019, July 1, 2019,
July 3, 2019, July 5, 2019, July 15, 2019, July 23, 2019 and
numerous phone calls. However, despite CARE's repeated requests,
firm has not been submitting monthly 'No Default Statement' (NDS)
for monitoring the ratings. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating. The rating on Hirehalli
Solar Power Project LLP bank facilities will now be denoted as CARE
B; STABLE ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
At the time of last rating on July 19, 2018 the following were the
rating strengths and weaknesses (updated for the FY19 Provisionals
available from the firm):
Key Rating Weaknesses
Delay in project execution: The operations commenced on August 24,
2017 against the envisaged COD of Aug'15. BESCOM had agreed to an
extension of COD by 6 months with an agreed rate of INR6.51 per
unit. However the same was disputed by KERC (Karnataka Electricity
Regulatory Commission). HSPPL has been pressed upon a tariff rate
of INR4.36 per unit as against the PPA rate INR8.4 per unit vide an
interim order. The firm has taken up the matter with KERC for
revision in tariff and the matter is pending.
Fixed cost associated with LLP agreement: The firm is required to
pay fixed amount of INR1.25 for every unit of power generation to
Mr. Chaluvaiah Vyarmudi, land owner. HSPPL has to pay O&M charges
to REL starting with INR0.31 crore in first year with 5% escalation
each year going forward. Such fixed expenses are expected to impact
profitability further for the firm.
Climatic and technological risks: Achievement of desired CUF going
forward would be subject to change in climatic conditions, amount
of degradation of modules as well as technological risks (limited
track record of solar technology in India).
Key Rating Strengths
Experience of the promoters with established track record in
renewable sector: HSPPL is promoted by Mr. R G Patil who is also a
Director of Ravindra Energy Limited (REL). REL (erstwhile Ravindra
Trading & Agencies Limited) was setup in 1980 and is promoted by
Murkumbi family of Shree Renuka Group. The company currently has
businesses under various subsidiaries in coal trading, sugar
trading and solar pumps trading. Satisfactory operational
performance of HSPPL in FY19 (Provisional): The firm has generated
3.54 MU in FY19 as against 1.24MU in 8MFY18 and earned revenue of
INR2.97 cr in FY19 (Provisional) as against INR1.08 cr in FY18.
Hirehalli Solar Power Project (HSPPL) is promoted by Mr. Sidram
Maleppa Kaluti, MD of Ravindra Energy Limited (REL) and Mr.
Ravindra Gundappa Patil. HSPPL has 3 MW grid connected solar
photovoltaic (PV) power plant at Hirehalli village, Taluka
Chalakere, Chitradurga district, Karnataka. HSPPL has an entered
into Limited Liability Partnership agreement with Mr. Chaluvaiah
Vyarmudi, M/s. Ravindra Energy Limited, Malvika Murukumbi and Mr.
Ravindra Gundappa Patil.
HUKKERI SOLAR: CARE Keeps D on INR9cr Loans in Non-Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Hukkeri
Solar Power Project LLP (HSPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 9.00 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from HSPL to monitor the
rating(s) vide e-mail communications/letters dated April 30, 2019,
May 2, 2019, May 6, 2019 and May 8, 2019, May 31, 2019, June 3,
2019, June 5, 2019 and June 7, 2019, June 28, 2019, July 1, 2019,
July 3, 2019, July 05, 2019, July 15, 2019, July 23, 2019 and
numerous phone calls. However, despite CARE's repeated requests,
the firm has not been submitting monthly 'No Default Statement'
(NDS) for monitoring the ratings. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating. The rating on Hukkeri Solar
Power Project LLP bank facilities will now be denoted as CARE B;
Stable, ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
At the time of last rating on November 5, 2018 the following were
the rating strengths and weaknesses:
Key Rating Weaknesses
Ongoing dispute with KERC regarding the Tariff Rate: The operations
commenced on May 08, 2017 against the envisaged COD of Jan'17.
HESCOM had agreed to an extension of COD by 6 months with an agreed
rate of INR6.51 per unit. However, the same was disputed by KERC
(Karnataka Electricity Regulatory Commission). Presently, HSPPL has
been billing at tariff rate of INR4.36 per unit as against the PPA
rate INR8.4 per unit vide an interim order. The firm has taken up
the matter with KERC for revision in tariff and the matter is
pending. Fixed cost associated with LLP agreement: The firm is
required to pay fixed amount of INR1.25/- unit of power generation
to Mr Ishwar S Matagar, land owner. Furthermore, HSPPL has to pay
O&M charges to REL (Ravindra Energy Limited; group company)
starting with INR0.21 crore in first year with 5% escalation each
year going forward. Such fixed expenses are expected to impact
profitability further for the firm. Climatic and technological
risks: Achievement of desired CUF (Capacity Utilization Factor) is
subjected to change in climatic conditions, amount of degradation
of modules as well as technological risks (limited track record of
solar technology in India).
Key Rating Strengths
Experience of the promoters with established track record in
renewable sector: HSPPL is promoted by Mr. R.G.Patil who is also a
director of Ravindra Energy Limited (REL). REL (erstwhile Ravindra
Trading & Agencies Limited) was incorporated in 1980 and was
promoted by the Murkumbi family of Shree Renuka Group. The company
currently has existing businesses under various subsidiaries in
coal trading, sugar trading and production and solar pumps
trading.
Power purchase agreement with Hubli Electricity Supply Company
Limited (HESCOM): HSPPL has entered into a long-term power purchase
agreement (PPA) for 25 years with Hubli Electricity Supply Company
Limited (HESCOM) dated July 7, 2015 for supply of 2 MW power.
Satisfactory operational performance of HSPPL in FY18(May'17 to
Mar'18) & 5MFY19: Post commencement of operations in May'17, the
firm has generated 1.34 MU till Mar'18 and earned a revenue of
INR1.12 crore. During 5MFY19 (from Apr'18 to Aug'18) the firm has
generated 0.70 MU with an estimated revenue of 0.59 crore.
Government initiative in promoting solar projects: The Government
has set a solar power target of 100 GW to be achieved within 2022
and in line with promoting use of solar powers has come up with
various incentives and is actively encouraging the use of solar
power for both residential and commercial purposes.
Hukkeri Solar Power Project (HSPL) was promoted by Mr. Sidram
Maleppa Kaluti, MD of Ravindra Energy Limited and Mr. Ravindra
Gundappa Patil in the year 2016. HSPL has 2 MW grid connected solar
photovoltaic (PV) power plant at Taluka Hukkeri, Belgavi district,
Karnataka. HSPL has an entered into Limited Liability Partnership
agreement with Mr. Ishwar S Matagar, M/s. Ravindra Energy Limited
and Mr. Ravindra Gundappa Patil.
INDIABULLS HOUSING: Moody's Cuts CFR to Ba2 & Alters Outlook to Neg
-------------------------------------------------------------------
Moody's Investors Service downgraded Indiabulls Housing Finance
Limited's long term corporate family rating to Ba2 from Ba1.
Moody's has also downgraded the company's foreign-currency senior
secured rating to Ba2 from Ba1, foreign- and local- currency senior
secured MTN program ratings to (P)Ba2 from (P)Ba1.
Moody's has changed the outlook to negative from stable.
RATINGS RATIONALE
The downgrade reflects renewed pressure on the cost and
availability of funds for IBH and certain other finance companies
in India. This presents a more challenging external environment
than Moody's had anticipated. The company's incremental cost of
funding increased 45bps quarter-on-quarter ending June 2019, while
the company's balance sheet declined by 7% over the same period.
This rise in funding costs was a key driver for the 28bps decline
in spreads in the same period, although profitability remains
comparatively strong relative to its peer group.
Liquid assets remain high, at around 24% of its balance sheet at
end June 2019. This continues to be a key positive credit driver as
it allows the company to be able to withstand some period of
impaired access to funding. As interest rates on high quality
liquid assets have declined, the company's strategy of holding a
relatively high pool of liquid assets -- a positive rating factor
-- has become costlier, presenting a drag on earnings due to
negative carry. At the same time, the firm's progress in improving
the quality of its liquid assets has been slower than what was
anticipated by Moody's.
The downgrade also factors in deterioration seen in asset quality
in the quarter ended June 2019, wherein stage 3 loans went up by
57% on a q-q basis, albeit from a low base. Most of the increase in
stage 3 loans has come from its corporate loan segment. This
segment is facing significant headwinds for the overall finance
company sector driven by a combination of very tight refinancing
conditions and weak borrower profiles. This segment will continue
to be a key source of asset quality risk for the company.
The ratings also reflect the solid capital and profitability of the
company, both of which remain relative credit strengths. Capital
levels have been strengthening, driven by a decline in the size of
the balance sheet and relatively high retained earnings.
The company had announced a plan in April 2019 to merge with
Lakshmi Vilas Bank, a small bank in India, and thus get converted
into a bank. This merger proposal is now awaiting regulatory
approval from RBI. If approved and consummated, it would be a
significant credit positive event for the company.
The outlook has been changed to negative to reflect the possibility
that the tight funding conditions may persist for some time, which
could further pressure other aspects of IBH's credit profile, such
as profitability and asset quality.
WHAT COULD CHANGE THE RATING UP
Since the rating is on a negative outlook, Moody's does not expect
the rating to go up over the next 12-18 months.
The outlook could be changed to stable if the company is able to
demonstrate improved access to funding. The company's ability to
sustain normal loan growth, achieve competitive funding costs, and
access funding from institutional investors would provide
indications of progress on this front.
The company has announced a plan to merge with Lakshmi Vilas Bank.
The plan is currently awaiting regulatory approval from the Reserve
Bank of India. The outlook could be changed to stable if the
company gets approval for the merger from RBI.
WHAT COULD CHANGE THE RATING DOWN
The rating could be downgraded if (1) the company is forced to
shrink its core business because of impediments on funding, which
would impact its overall franchise including by way of lowering
profitability and/or, (2) there is further meaningful deterioration
in asset quality and/or, (3) there is reduction in either the
quantity or quality of liquid assets that it is currently holding.
INFISSI FENESTRATION: CARE Cuts Rating on INR8.75cr Loan to 'B'
---------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Infissi Fenestration LLP, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 8.75 CARE B; Stable Revised from
Facilities CARE B-; Stable; ISSUER NOT
COOPERATING
In the absence of meeting the monthly requirement to provide NDS,
CARE was unable to express an opinion on the ratings of Infissi
Fenestration LLP and in line with the extant SEBI guidelines, CARE
revised the rating of bank facilities of the firm to 'CARE B-;
Stable; ISSUER NOT COOPERATING'. However, the firm has now
submitted the requisite information to CARE. CARE has carried out a
full review of the ratings and the rating(s) stand at 'CARE B;
Stable'.
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of Infissi Fenestration
LLP (INF) continues to remain constrained by short track record and
small scale of operations, weak financial risk profile
characterized by cash losses, leveraged capital structure and weak
coverage indicators. The rating is further constrained by its
working capital intensive nature of operations, volatility in
prices of raw material and INF's presence in competitive nature of
the industry. However, the rating continues to draw comfort by
experienced partners in diversified business segment. The ability
of the firm to increase its scale of operations, improve its
profitability and capital structure will be the key rating
sensitivities.
Detailed description of the key rating drivers
Key rating weaknesses
Short track record and small scale of operations: The firm started
commercial operations in March 2016 and has short of track record
in this industry as compared to other established players. FY17
(refer to period April 1 to March 31) was first full year of
operations for the firm. During FY18 (refers to the period April 1
to March 31; based on audited results) the firm has achieved total
operating income of INR15.67 crore. The small scale limits the
firm's financial flexibility in times of stress and deprives it
from scale benefits. Further, in FY19, the firm recorded TOI of
INR20.29 crore till March 31, 2019 based on provisional results.
Weak financial risk profile: The firm has incurred cash losses
during FY18 (refers to the period April 1 to March 31) owing to
initial stage of operations. Furthermore, the capital structure
stood highly leveraged mainly on account of low partner's capital
coupled with high total debt on account of debt funded CAPEX
coupled with high dependence on bank borrowings to meet the
working capital requirements. Furthermore, debt coverage indicators
marked by interest coverage ratio and total debt to
GCA stood weak on account of high interest expense and high
reliance on external borrowings.
Working Capital intensive nature of operations: The operations of
the firm are working capital intensive in nature as marked by
operating cycle of 135 days in FY18 mainly on high inventory
period. The firm generally maintains inventory of around 3 months
mainly in the form of raw material for smooth production process
and finished goods to meet the immediate demand of its customers
resulting in an average inventory holding of 77 days in FY18. The
firm allows a credit period of around 2-3 months to its customers
due to competitive nature of industry resulting in an average
collection period of 69 days in FY18.The firm receives a credit
period of around a fortnight from its suppliers resulting in an
average creditor period of 12 days in FY18. The average working
capital borrowings of the firm remained almost 90% utilized during
the past 12 months ending June 30, 2019.
Volatility in prices of raw material: The raw material prices of
G.P Coils are highly volatile in nature and depend on the fortunes
of steel & iron industry. Since the raw material cost is the major
cost driver and any southward movement of finished goods price with
no decline in raw material price is likely to result in adverse
performance.
Competitive nature of the industry: INF operates in a highly
fragmented industry marked by the presence of a large number of
players in the unorganized sector. Further, with presence of
various players, the same limits bargaining power which exerts
pressure on its margins.
Key Rating Strengths
Experienced partners in diversified business segment: Ms. Anchal
Bansal, Mr. Rajinder Bansal and Mr. Abhiman Kansal and Mr. Nakul
Kansal collectively look after the operations of the firm. The
partners of the firm are graduates by qualification and have been
associated with the firm since its inception. Though the partners
have limited experience in steel industry. Mr. Rajinder Bansal has
more than three decades of experience in diversified business
segments such as hospitality, textiles, and education industry.
Further, Ms. Anchal Bansal has an experience of around half a
decade in the steel industry through her association with INF and
other family run businesses.
Haryana based Infissi Fenestration LLP (INF) was established in
2015 as Limited Liability Partnership. Mr. Abhiman Kansal, Mr.
Nakul Kansal, Mr. Rajinder Bansal and Ms. Aanchal Bansal are
partners and share profit and loss in the ratio of 16:17:17:50. The
firm is engaged in manufacturing of steel reinforcement which finds
application in manufacturing of UPVC (Unplasticized polyvinyl
chloride) products (door, window etc). Its manufacturing facility
located in Faridabad, Haryana and has an installed capacity of 3
lakh Kgs per month as on June 30, 2019. The firm sells its products
PAN India to states namely Uttar Pradesh, Punjab, Bihar, Jharkhand
etc. The main raw material used for manufacturing is Galvanized
Plain Coil (GP coils) and sheets which firm procures mainly from
Tata Steel limited and suppliers located in Haryana. The firm is
also engaged in trading of hardware material like handles, locks
etc. which is normally procured from China, etc. and places
nearby.
ISHWAR GINNING: CARE Keeps D on INR12cr Loans in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Ishwar
Ginning Private Limited (IGPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 12 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated October 24, 2018, placed the
rating(s) of IGPL under the 'issuer non-cooperating' category as
IGPL had failed to provide information for monitoring of the rating
for the rating exercise as agreed to in its Rating Agreement. IGPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and an email
July 22, 2019, July 23, 2019, July 24, 2019, July 25, 2019 and
numerous phone calls. However, despite CARE's repeated requests,
the company has not provided the requisite information for
monitoring the ratings. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of the publicly available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
At the time of last rating on October 24, 2018 the following were
the rating strengths and weaknesses (updated for registrar of the
companies).
Delays in Debt servicing: The account has become NPA due to poor
liquidity position.
Liquidity Analysis
Poor liquidity: The liquidity remained poor due to cashflow
mismatch from operation.
Incorporated in 2015, Rajkot (Gujarat) based, Ishwar Ginning
Private Limited (IGPL) is promoted by Mr Rameshbhai Gamdha and Mr
Ashokbhai Gamdha with an objective of manufacturing of cotton bales
and cotton seeds. Mr Rameshbhai Gamdha and Mr Ashokbhai Gamdha are
also partners in Ishwar Oil Industries and Ishwar
Oil Mill which are into manufacturing of cotton oil and cotton oil
cake.
IGPL has started production from December, 2015 hence, up to March
31, 2016 (Prov.), IGPL has achieved TOI of INR20.56 crore. IGPL has
infused share capital of INR0.01 crore and raised unsecured loan of
INR7.52 crore till March 31, 2016. Sundry creditors, Sundry debtors
and closing stock remained at INR4.69 crore, INR1.56 crore and
INR9.34 crore respectively as on March 31, 2016.
ISHWAR OIL: CARE Keeps D on INR5.5cr Loans in Non-Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Ishwar Oil
Industries (IOI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 5.53 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated October 24, 2018, placed the
rating(s) of IOI under the 'issuer non-cooperating' category as IOI
had failed to provide information for monitoring of the rating for
the rating exercise as agreed to in its Rating Agreement. IOI
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and an email
July 22, 2019, July 23, 2019, July 24, 2019, July 25, 2019 and
numerous phone calls. However, despite CARE's repeated requests,
the company has not provided the requisite information for
monitoring the ratings. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of the best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above ratings.
Detailed description of the key rating drivers
At the time of last rating on October 24, 2018 the following were
the rating strengths and weaknesses (updated for registrar of the
companies).
Delays in Debt servicing: The account has become NPA due to poor
liquidity position.
Liquidity Analysis
Poor liquidity: The liquidity remained poor due to cashflow
mismatch from operation.
Rajkot (Gujarat) based Ishwar Oil Industries (IOI) was established
on 11th November 2013 by Mr.Rameshbhai Gamdha, Mr.Jadavbhai Gamdha
and Mr. Ketanbhai Gamdha. IOI is a partnership firm engaged in
manufacturing of cotton seed cake and trading of all agricultural
produce. However the commercial operation commenced from November,
2014. The day-to-day operations are managed by Mr. Rameshbhai
Gamdha and he has experience of more than a decade in this
industry. The firm procures cotton seeds from traders and cotton
ginning units, and undertakes processing on the same, while the
finished products are sold to oil refining companies and industrial
users.
JECRC UNIVERSITY: CARE Keeps D on INR105cr Loans in Non-Cooperating
-------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of JECRC
University (JU) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 105.23 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated March 16, 2018, placed the
ratings of JU under the 'issuer noncooperating' category as JU had
failed to provide information for monitoring of the ratings. JU
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated July 23, 2019. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The rating of JU continues to remain constrained on account of
on-going delays in servicing of debt obligations.
Detail description of the key rating drivers
At the time of last rating on March 16, 2018 the following were the
rating strengths and weaknesses updated for information provided by
the lenders.
Ongoing delays in debt servicing: As per interaction with the
bankers, there are on-going delays in servicing of interest
obligations.
Jaipur-based (Rajasthan) JU is a private university promulgated
through an ordinance passed in May 2012 by the Governor of
Rajasthan. JU is also approved by the University Grant Commission
(UGC) u/s 2(f) of the UGC Act 1956, with the right to confer degree
u/s 22(1) of the UGC Act. JU is sponsored by National Society for
Engineering Research and Development (NSERD) which was formed in
1999 by Mr Om Prakash Agrawal with a vision to offer degree courses
(both graduation and post-graduation) in different streams such as
Engineering, Management and Science.
JM FERRO: CARE Keeps D on INR19.5cr Loans in Non-Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of JM Ferro &
Alloy Private Limited (JMFAPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 7.50 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Short-term Bank 12.00 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated January 16, 2019, placed the
rating of JMFAPL under the 'issuer non-cooperating' category as
JMFAPL had failed to provide information for monitoring of the
rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. JMFAPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
July 19, 2019. In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the best available information
which however, in CARE's opinion is not sufficient to arrive at a
fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
At the time of last rating on January 16, 2019 the following were
the rating strengths and weaknesses:
Key Rating Weaknesses
Delay in debt servicing: As per the interaction with the banker,
the account has turned NPA.
Incorporated in 2011 as private limited company, J M Ferro Alloys
Private Limited (JM) is engaged in the business of trading of steel
products namely Hot Rolled (HR) sheets/coils/CTL, Galvanized Plain
(GP) coil/sheet, scrap, Pipe, Tube, TMT bars and others. JM's
products find application mainly in automobile, electrical,
construction and consumer durable industry. Around 60% of JM
purchases are from the domestic market and balance is imported
indirectly through agents. Revenues are generated entirely from the
domestic market. JM stocks traded material at its warehouse
situated at Kalamboli and supplies as per the customer's
requirements.
KARUTURI GLOBAL: Initiates Corporate Insolvency Proceedings
-----------------------------------------------------------
The Hindu reports that a Corporate Insolvency Resolution Process
(CIRP) has been initiated against Bengaluru-based Karuturi Global,
one of the world's largest producers of cut roses.
The Hindu relates that in a stock exchange filing, Karuturi Global
announced that CIRP has been initiated in respect of the company
under the provisions of the Insolvency and Bankruptcy Code by way
of an order dated August 2, 2019 of the National Company Law
Tribunal (NCLT), Bengaluru bench.
Karuturi Global's affairs, business and assets are being managed by
Ghanshyam Das Mundra, the Interim Resolution Professional (IRP)
appointed by the National Company Law Tribunal, the company said in
a stock exchange filing, the report relays.
Karuturi Global has outstanding debt of over INR86 crore in loans
taken from Axis Bank, the Hindu discloses. Under the new
development, Karuturi Global has been prohibited from transferring,
encumbering, alienating or disposing of any of its assets.
Karuturi Global owns large rose farm holdings in Kenya, Tanzania,
Ethiopia, Pune and Bengaluru, and grows over 555 million stems of
roses a year across 300 hectares.
On an average, India ships over 100 million stems of red roses to
markets including the U.K., West Asia, Australia, China and
Netherlands. More than half of these roses are produced by
Karuturi Global.
KURUGUNDA SOLAR: CARE Migrates Rating on INR13.50cr Loan to B
-------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of
Kurugunda Solar Power Project LLP (KSPPL) to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 13.50 CARE B; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from KSPPL to monitor the
rating(s) vide e-mail communications/letters dated April 30, 2019,
May 2, 2019, May 6, 2019 and May 8, 2019, May 31, 2019, June 3,
2019, June 5, 2019 and June 7, 2019, June 28, 2019, July 1, 2019,
July 3, 2019, July 5, 2019, July 15, 2019, July 23, 2019 and
numerous phone calls. However, despite CARE's repeated requests,
the firm has not been submitting monthly 'No Default Statement'
(NDS) for monitoring the ratings. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating. The rating on Kurugunda
Solar Power Project LLP bank facilities will now be denoted as CARE
B; Stable, ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
At the time of last rating on July 19, 2018 the following were the
rating strengths and weaknesses (updated for the FY19
Provisional information available from the firm):
Key Rating Weaknesses
Delay in project execution: The operations commenced on July 12,
2017 against the envisaged COD of Jun'15. HESCOM had agreed to an
extension of COD by 6 months with an agreed rate of INR6.51 per
unit. However the same was disputed by KERC (Karnataka Electricity
Regulatory Commission). KSPPL has been pressed upon a tariff rate
of INR4.36 per unit as against the PPA rate INR8.4 per unit vide an
interim order. The firm has taken up the matter with KERC for
revision in tariff and the matter is pending.
Fixed cost associated with LLP agreement: The firm is required to
pay fixed amount of INR1.25 for every unit of power generation to
Mr. Irruva Rudragouda Patil, land owner. KSPPL has to pay O&M
charges to REL starting with INR0.31 crore in first year with 5%
escalation each year going forward. Such fixed expenses are
expected to impact profitability further for the firm.
Climatic and technological risks: Achievement of desired CUF going
forward would be subject to change in climatic conditions, amount
of degradation of modules as well as technological risks (limited
track record of solar technology in India).
Key Rating Strengths
Experience of the promoters with established track record in
renewable sector: KSPPL is promoted by Mr. R G Patil who is also a
Director of Ravindra Energy Limited (REL). REL(erstwhile Ravindra
Trading & Agencies Limited) was setup in 1980 and is promoted by
Murkumbi family of Shree Renuka Group. The company has businesses
under various subsidiaries in coal trading, sugar trading and solar
pumps trading.
Satisfactory operational performance of KSPPL in FY19
(Provisional): The firm has generated 2.48 MU in FY19 as against
1.04 MU in FY18 and earned revenue of INR2.08 cr in FY19
(Provisional) as against INR0.87 cr in FY18.
Kurugunda Solar Power Project (KSPPL) is promoted by Mr. Sidram
Maleppa Kaluti, MD of Ravindra Energy Limited (REL) and Mr.
Ravindra Gundappa Patil. KSPPL has 3 MW grid connected solar
photovoltaic (PV) power plant at Kurugunda village, Taluka
Bailhongal, Belgavi district, Karnataka. KSPPL has an entered into
Limited Liability Partnership agreement with Mr. Irruva Rudragouda
Patil, M/s. Ravindra Energy Limited, Malvika Murukumbi and Mr.
Ravindra Gundappa Patil.
LAVASA CORP: CARE Reaffirms D Rating on INR547.81cr Loan
--------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Lavasa Corporation Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 396.33 CARE D; Issuer not cooperating;
Facilities- Rating Reaffirmed; Based on
Term Loan best available information
Long term Bank 547.81 CARE D; Issuer not cooperating;
Facilities– Rating Reaffirmed; Based on
Term Loan best available information
Long-term 96.39 CARE D; Issuer not cooperating;
Instruments-NCD I Rating Reaffirmed; Based on
best available information
Long-term 250.00 CARE D; Issuer not cooperating;
instruments– Rating Reaffirmed; Based on
NCD IV best available information
Long-term 114.45 CARE D; Issuer not cooperating;
instruments– Rating Reaffirmed; Based on
NCD V best available information
CCPS 525.00 CARE D; ISSUER NOT COOPERATING
Revised from CARE C (SO);
Negative; ISSUER NOT
COOPERATING Outlook: Negative;
ISSUER NOT COOPERATING
Detailed Rationale & Key Rating Drivers
Lavasa Corporation Limited has not paid the surveillance fees for
the rating exercise agreed to in its Rating Agreement. In line
with the extant SEBI guidelines, CARE's rating on Lavasa
Corporation Ltd.'s bank facilities/instruments will now be denoted
as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings take into account the delays in debt servicing owing to
stressed liquidity position. The revision in rating for CCPS
is owing to non-payment of consideration as a result of put option
exercised by Axis Bank. LCL has been admitted in NCLT on
August 30, 2018.
Detailed description of the key rating drivers
At the time of last rating on December 31, 2016, the following was
the rating weakness (updated for the information
available from the annual report published on the HCC website.):
Key Rating Weaknesses
Delays in Debt Servicing: There are on-going delays in debt
servicing to the lenders owing to stressed liquidity position.
Admission to NCLT: LCL was admitted to NCLT under IBC on
August 30, 2018. RP has been appointed for the same. RP has also
received a resolution plan from UV Asset Reconstruction Company
which was presented to CoC and negotiation process between CoC
and resolution applicant is underway.
Lavasa Corporation Limited (LCL) was incorporated on February 11,
2000. On March 3, 2003, the company became a Public Limited
company. Effective from June 8, 2004, the company's name has been
changed to its current name- Lavasa Corporation Limited (LCL) –
previously known as The Lake City Corporation Private Limited. The
main business of the company was to establish and develop
townships, holiday resorts, and facilities such as recreational,
educational, and commercial amenities, hotels, guesthouses, etc.
LCL is promoted by Hindustan Construction Company Ltd (HCC) through
its wholly owned subsidiary company HCC Real Estate Limited (HREL)
and Hincon Finance Ltd. (HFL) contributing to a shareholding of
68.72% in LCL. HREL was incorporated on June 15, 2005 as a public
limited company as Hincon Realty Limited. The name of the company
was changed to HCC Real Estate Limited and a fresh certificate of
incorporation was issued on August 8, 2006. The principal business
of HREL is construction and development of buildings, houses,
halls, flats, office premises, shops, residential / commercial
complexes, shopping malls, entertainment parks or any landed
property.
MAHALAXMI BUILDERS: CARE Moves D on INR14cr Loans to NonCooperating
-------------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of
Mahalaxmi Builders and Developers (MBD) to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 14.00 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking no default statement from MBD to monitor the
ratings vide e-mail communications dated June 10, 2019, July 24,
2019, July 26, 2019 and numerous phone calls. However, despite
CARE's repeated requests, the firm has not provided no default
statement for monitoring the ratings. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the
publicly available information which however, in CARE's opinion is
not sufficient to arrive at a fair rating. The ratings on MBD
Projects' bank facilities will now be denoted as CARE B+; Stable
ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
N&N CONSTRUCTIONS: CARE Keeps D on INR12cr Debt in Non-Cooperating
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of N & N
Constructions (NNC) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 12.252 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 30, 2018 placed the
rating(s) of NNC under the 'issuer non-cooperating' category as NNC
had failed to provide information for monitoring of the rating. NNC
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and email
dated July 5, 2019, July 9, 2019, July 12, 2019, July 16, 2019 and
July 17, 2019 In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the best available information
which however, in CARE's opinion is not sufficient to arrive at a
fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
At the time of last rating on May 30, 2018 following were the
strengths and weaknesses.
Key Rating Weakness
Delay in debt servicing: The company has delays in servicing of
debt obligations owing to the stretched liquidity position of the
company.
Key Rating Strengths
Experienced promoters; albeit limited track record of operations
NNC commenced its operation in 2010 and since inception the firm
has been engaged in the business of constructing railway track and
railway siding works. Mr. P.S. Santosh, Managing Partner, is a
first generation entrepreneur having rich business experience of
about 20 years in the field of Ready Mix Concrete, earth movers &
heavy equipment, roads & large format earth works, mining, stone
processing units, EPC contracts and green field projects. He looks
after the overall operations of the firm. Though the firm lacks
long track record in operations, it has a qualified and experienced
management team and technical personnel, who over the years have
helped the business to grow.
P PADMA RURAL: CARE Lowers Rating on INR9.79cr Loan to D
--------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
P Padma Rural Godowns (PPRG), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 9.79 CARE D Revised from CARE B+;
Facilities Stable
Detailed Rationale& Key Rating Drivers
The revision in the ratings assigned to the bank facilities of
PPRG is on account of ongoing delays in the servicing of interest
and principal amount of term loan facility.
Detailed description of the key rating drivers
Key Rating Weaknesses
Ongoing delays in servicing debt obligations: The firm has ongoing
delays in term loan installment repayments along with servicing of
interest obligations due to stressed liquidity position. As per the
banker's feedback, the firm has an overdue of INR0.54 crore as on
July 31, 2019.
Small Scale of operations: The scale of operations of the entity
marked by total operating income (TOI), remained small at INR0.54
crore in FY19 (C. A. Certified Prov.) with low net worth base of
INR3.97 crore as on March 31, 2019 (C. A. Certified Prov.) as
compared to other peers in the industry.
Declining Profitability Margins: PBILDT margin declined from 95.26%
in FY17 to 92.78% in FY18 due to increase in maintenance costs and
PBILDT margin has marginally increased and stood at 93.71% in FY19
(C. A. Certified Prov.) at the back of increase in scale of
operations. PAT margin of the firm declined from 20.07% in FY17 to
8.18% in FY18 due to increase in interest cost due to availing of
loans and at the back of decrease in PBILDT in absolute terms.
Further, the PAT margin of the firm has increased and stood at
15.01% in FY19 (C. A. Certified Prov.) at the back of increase in
PBILDT in absolute terms.
Leveraged capital structure and weak debt coverage indicators: The
capital structure of the firm remained leveraged. The debt equity
ratio of the firm deteriorated from 1.51x as on March 31, 2017 to
2.74x as on March 31, 2019 (C. A. Certified Prov.), due to increase
in term loan. As a result overall gearing ratio also deteriorated
from 1.51x as on March 31, 2017 to 3.06x as on March 31, 2019 (C.
A. Certified Prov.). The firm's debt coverage indicators stood weak
during review period. The Total debt/GCA of the firm deteriorated
from 112.12x in FY18 to 126.81x in FY19 (C. A. Certified Prov.) due
to availment of term loan. However, the interest coverage ratio
deteriorated from 2.05x in FY17 to 1.69x in FY18 due to decrease in
PBILDT in absolute terms and improved to 1.80x due to increase in
interest cost and decline in PBILDT.
Proprietorship nature of constitution with risk of withdrawal of
capital: The firm being a proprietorship firm is exposed to
inherent risk of capital withdrawal by proprietor due its nature of
constitution. Any substantial withdrawals from capital account
would impact the net worth and thereby the gearing levels.
Highly competitive and fragmented nature of business: The firm is
engaged into the business of providing go down facilities on lease
basis to the farmers where the profitability margins comparing to
other industry will be low. Apart from that there are numerous
organized and unorganized players entering into the market which
makes the industry competitive nature.
Key Rating Strengths
Experience of Partners for more than a decade in agricultural
industry: P Padma Rural Godowns (PRG) was established in the year
2013 and is promoted by Mrs. Padma Pachimatla. The day to day
operations of the firm are managed by Mr. Shiv Raju Pachimatla
(Spouse of Mrs Padma). The proprietor of the firm is having more
than a decade of experience in agricultural industry and having
five years of experience in warehouse industry.
Growth in operating income: The total operating income of the SRP
increased from INR0.59 crore in FY17 to INR0.75 crore in FY19 (C.
A. Certified Prov.) due to increase in rental income.
Andhra Pradesh based, P Padma Rural Godowns (PRG) was established
as a proprietorship firm in the year 2013 and promoted by Mrs.
Padma Pachimatla. The firm is engaged in providing ware house on
lease rental to Telangana State Civil Supplies Corporation Limited
(TSCSCL), Food Corporation of India (FCI) and Cotton Corporation of
India (CCI). The property is built on total land area of 8 acres
and comprises of 8 godowns, with aggregate storage capacity of
around 23000MT, for food crops like rice, wheat, cotton etc
respectively.
PATCO POLYPACK: CARE Lowers Rating on INR8.6cr Loan to B
--------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Patco Polypack Private Limited (PPPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 8.60 CARE B; Stable ISSUER NOT
Facilities COOPERATING Revised from
CARE B+; Stable Issuer not
cooperating; Based on best
available information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated September 21, 2018, placed
the rating of PPPL under the 'issuer non-cooperating' category as
PPPL had failed to provide information for monitoring of the rating
as agreed to in its Rating Agreement. PPPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
June 19, 2019, June 21, 2019, June 26, 2019. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The revision in the rating assigned to the bank facilities of PPPL
is on account of its nascent stage of operations, thin
profitability, leveraged capital structure and weak debt coverage
indicators along with increasing competitive pressure in industry
and susceptibility of profit margins to volatility in raw material
price. The rating, however, continues to derive strength from the
long and diversified experience of the promoters and availability
of various fiscal benefits from the government.
Detailed description of the key rating drivers
At the time of last rating on September 21, 2018 the following were
the rating strengths and weaknesses (updated for the
information available from Registrar of Companies).
Key Rating Weaknesses
Nascent stage of operations and thin profitability: During FY18,
which is the first year of operations for PPPL, it has achieved TOI
of INR6.24 crore. Though, PBILDT margin of the company remained
healthy at 18.03% during FY18, PAT margin remained thin at 0.43%
during FY18.
Leveraged capital structure and weak debt coverage indicators:
Solvency position of the company remained leveraged as indicated by
an overall gearing ratio of 3.47 times as on March 31, 2018.
Further, Tangible Net Worth remained at modest level of INR3.03
crore. Debt coverage indicators of PPPL remained weak as marked by
total debt to GCA which remained at 26.55 years as on March 31,
2018 Further, interest coverage ratio of the company remained at
1.53 times during FY18.
Increasing competitive pressure and susceptibility of profit
margins to volatility in raw material prices: Pricing power remains
limited owing to significant cost pressures from the end-user
segment coupled with considerable competitive intensity. The main
raw material for the company is virgin HDPE (High Density
Poly-Ethylene) and PP (Polypropylene) whose prices are governed by
international prices which will have direct impact on the raw
material prices for PPPL.
Key Rating Strengths
Diversified experienced of promoters: Key promoters of PPPL hold
more than a decade of experience into diversified field. Mr
Nareshkumar Purshottamdas Patel holds experience of more than three
decades through his association with M/s Sabar Cotton Pvt. Ltd. and
M/s Prime Insulators Pvt. Ltd. as a director. Furthermore, he is
also associated as a partner with M/s Paras Insulators. Vishnubhai
Motibhai Patel, director, has total experience of 15 years through
his association with M/s Kedar Tiles as a proprietor. Mr Chimanbhai
Manubhai Patel, director, having total experience of 18 years
through his association with M/s Sterling Ceramics and M/s Space
Enterprise as a partner. Mr Pravinbhai Amrutbhai Patel, director,
having 16 years of business experience is also associated with M/s
Tirupati Tiles as a proprietor.
Eligibility of different fiscal benefits: PPPL is eligible for
various interest, capital and VAT subsidy from government as per
Gujarat Textile Policy – 2012. The company is also eligible for
capital investment subsidy on eligible plant & machineries under
Amended Technology Up gradation fund scheme.
Liquidity Analysis: The liquidity position of the firm remained
modest. Cash and bank balance remained at INR0.03 crore as on March
31, 2018 and cash flow from operations remained negative at INR3.21
crore in FY18. Further, current ratio and quick ratio remained at
1.35 times & 0.64 times respectively as on March 31, 2018.
Prantij-based (Gujarat) PPPL was incorporated in June 20, 2016, by
four directors, namely, Mr Nareshkumar Purshottamdas Patel, Mr
Vishnubhai Motibhai Patel, Mr Chimanbhai Manibhai Patel and Mr
Pravinbhai Amrutbhai Patel. The company has set up a manufacturing
unit for laminated HDPE/PP woven fabric. The company will operate
with an installed capacity of Laminated HDPE/PP woven fabrics: 2592
Metric tonne per annum and Lamination (Job work): 1068 Metric tonne
per annum. Total project cost was INR9.95 crore which was funded
through debt/equity mix of 1.01 times. PPPL commenced operations
from June 21, 2017.
R M ENTERPRISE: CARE Keeps D on INR7.5cr Loans in Non-Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of R M
Enterprise (RME) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 7.50 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated September 12, 2018, placed
the rating(s) of RME under the 'issuer non-cooperating' category as
RME had failed to provide information for monitoring of the rating
as agreed to in its Rating Agreement. RME continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
June 19, 2019, June 21, 2019, June 26, 2019. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
At the time of last rating on September 12, 2018 the following were
the rating weaknesses
Ongoing delay in debt servicing: There are on-going delays in debt
servicing due to weak liquidity position of the firm.
Surat (Gujarat) based, RME was established as a partnership firm in
2015. RME is currently executing a residential with 3 BHK 51 flats
at Surat named 'Kusum Heights' which comprises of 13 floors
involving development of 1895.16 Square Feet area. The project
implementation commenced in October 2015 and till April 2017, RME
has incurred the total cost of INR8.81 crore (45% of total project
cost) out of the total cost of INR19.43 crore.
SANGHAVI JEWEL: CARE Lowers Rating on INR78.71cr Loan to 'D'
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Sanghavi Jewel Private Limited (SJPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank
Facilities–
Fund Based 78.71 CARE D Revised from CARE B;
Stable
Short term Bank
Facilities–
Non Fund Based 1.00 CARE D Revised from CARE A4
Detailed Rationale & Key Rating Drivers
The revision in the ratings assigned to the bank facilities of SJPL
is on account of delays in servicing of debt obligations as
informed by the company and confirmed by the lender.
Detailed description of the key rating drivers
Key Rating Weaknesses
Delays in servicing of debt obligations: There have been instances
of delays as reported by the company and confirmed by the lender.
Sanghavi Jewel Pvt Ltd. (SJPL) is a part of the Sanghavi group,
headed by Mr. Jayesh Sanghavi the current Managing Director.
Sanghavi Exports International Pvt Ltd (SEIPL) (rated CARE D;
Issuer Not-Cooperating), the flagship company of the group, holds
91.02% shares in SJPL. SEIPL is engaged in the processing of rough
diamonds and export of cut and polished diamonds. SJPL is engaged
in the manufacturing and export of studded gold, silver and
platinum jewellery using polished diamonds, precious and other
semi-precious stones. The manufacturing facility is located in
SEEPZ Mumbai, Maharashtra.
UDUPI DEVELOPERS: CARE Keeps D on INR14cr Loans in Non-Cooperating
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Udupi
Developers (UD) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 14.75 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated March 14, 2018 placed the
rating(s) of UD under the 'issuer non-cooperating' category as UD
had failed to provide information for monitoring of the rating. UD
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and email
dated July 5, 2019, July 9, 2019, July 12, 2019, July 15, 2019 and
July 17, 2019 In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the best available information
which however, in CARE's opinion is not sufficient to arrive at a
fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
At the time of last rating on March 14, 2018 following were the
strengths and weaknesses.
Key Rating Weakness
Ongoing delays in meeting of debt obligations: Udupi developers has
been facing liquidity issues from past few months due to which the
firm is unable to service the interest and principle installments
obligations on term loan facility. There are on-going delays in
servicing the interest and installment in term loan facility.
Key rating strengths
Experience of promoter of six years in real estate industry and
successful execution of one project since inception: Mr.
Jamalduddin, Managing Partner of the firm, is aged about 40 years
was earlier a NRI. He is having 6 years of construction experience,
apart from which he also has experience in trading vegetables and
fruits and has another associate company engaged in super market
business. Mrs. DhulekhaJamalduddin, another partner and has 5 years
of experience in the real estate business and handles
administration part of business. She also has experience in trading
business. The partners are assisted by project managers, engineers,
technical advisors, market professionals and financial experts. In
the past, UDP has executed one residential project namely "Udupi
Apartments". Apartment consists of 12 apartments (ground floor plus
three upper floors) of around 12000 sq.ft. built up area with cost
of INR2.40 crore. Further the one of the partners has share in a
residential building being situated in Manipal in the name of
"Ideal Residency" of 34 flats.
Udupi Developers (UD) was established in the year 2010 as a
partnership firm and is managed by Mr. Jamalduddin (Managing
Partner) and Mrs. DhulekhaJamalduddin. The firm is engaged in
construction of residential & commercial buildings. UDP has
successfully completed one residential apartment project since its
inception. UDP is currently implementing a commercial complex
project (shopping mall) namely "City Centre". The ongoing project
is located near to bus stand of Udupi. The firm is doing
construction and marketing activities by themselves. The firm has
obtained the necessary plan, approvals and permission for
construction of commercial complex.
YARGNAVI SOLAR: CARE Moves D on INR12.63cr Loans to Non-Cooperating
-------------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Yargnavi
Solar Power Project LLP (YSPL) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 12.63 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from YSPL to monitor the
rating(s) vide e-mail communications/letters dated April 30, 2019,
May 2, 2019, May 6, 2019 and May 8, 2019, May 31, 2019, June 3,
2019, June 5, 2019 and June 7, 2019, June 28, 2019, July 1, 2019,
July 3, 2019, July 5, 2019, July 15, 2019, July 23, 2019 and
numerous phone calls. However, despite CARE's repeated requests,
the firm has not been submitting monthly 'No Default Statement'
(NDS) for monitoring the ratings. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating. The rating on Yarganvi Solar
Power Project LLP bank facilities will now be denoted as CARE B;
Stable, ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
At the time of last rating on November 5, 2018 the following were
the rating strengths and weaknesses:
Key Rating Weaknesses
Ongoing dispute with KERC regarding the Tariff Rate: The operations
commenced on July 12, 2017 against the envisaged COD of Dec'16.
HESCOM had agreed to an extension of COD by 6 months with an agreed
rate of INR6.51 per unit. However, the same was disputed by KERC
(Karnataka Electricity Regulatory Commission). Presently, YSPPL has
been billing at tariff rate of INR4.36 per unit as against the PPA
rate INR8.4 per unit vide an interim order. The firm has taken up
the matter with KERC for revision in tariff and the matter is
pending.
Fixed cost associated with LLP agreement: The firm is required to
pay fixed amount of INR1.25/- unit of power generation to Mr Babu G
Kallur, land owner. Furthermore, YSPPL has to pay O&M charges to
REL (Ravindra Energy Limited; group company) starting with INR0.31
crore in first year with 5% escalation each year going forward.
Such fixed expenses are expected to impact profitability further
for the firm.
Climatic and technological risks: Achievement of desired CUF
(Capacity Utilization Factor) is subjected to change in climatic
conditions, amount of degradation of modules as well as
technological risks (limited track record of solar technology in
India).
Key Rating Strengths
Experience of the promoters with established track record in
renewable sector: YSPPL is promoted by Mr. R.G. Patil who is also a
director of Ravindra Energy Limited (REL). REL (erstwhile Ravindra
Trading & Agencies Limited) was incorporated in 1980 and was
promoted by the Murkumbi family of Shree Renuka Group. The
company currently has existing businesses under various
subsidiaries in coal trading, sugar trading and production and
solar pumps trading.
Power purchase agreement with Hubli Electricity Supply Company
Limited (HESCOM): YSPPL has entered into a long-term power purchase
agreement (PPA) for 25 years with Hubli Electricity Supply Company
Limited (HESCOM) dated June 30, 2015 for supply of 3 MW power.
Satisfactory operational performance of YSPPL in FY18(Jul'17 to
Mar'18) & 5MFY19: Post commencement of operations in Jul'17, the
firm has generated 2.12 MU till Mar'18 and earned a revenue of
INR1.79 crore. During 5MFY19 (from Apr'18 to Aug'18) the firm has
generated 1.43 MU with an estimated revenue of 1.20 crore.
Government initiative in promoting solar projects: The Government
has set a solar power target of 100 GW to be achieved within 2022
and in line with promoting use of solar powers has come up with
various incentives and is actively encouraging the use of solar
power for both residential and commercial purposes.
Yarganvi Solar Power Project (YSPL) was promoted by Mr. Sidram
Maleppa Kaluti, MD of Ravindra Energy Limited and Mr. Ravindra
Gundappa Patil in the year 2016. YSPL has 3 MW grid connected solar
photovoltaic (PV) power plant at Taluka Savadatti, Belgavi
district, Karnataka. YSPL has an entered into Limited Liability
Partnership agreement with Mr. Babu GKallur, M/s. Ravindra Energy
Limited and Mr. Ravindra Gundappa Patil.
=================
I N D O N E S I A
=================
DSSP POWER: Fitch Withdraws B+(EXP) on New $350MM Notes
-------------------------------------------------------
Fitch Ratings has withdrawn the 'B+(EXP)' expected rating with a
Stable Outlook assigned to PT DSSP Power Sumsel's proposed USD350
million notes due 2023. The expected rating was assigned on August
28, 2018. The notes would have been issued by Great Horizon Capital
Pte. Ltd., a Singapore-registered financing vehicle, and guaranteed
by Sumsel.
RATING RATIONALE
Fitch is withdrawing the expected rating as Sumsel's forthcoming
debt issuance is no longer expected to convert to final rating.
KEY RATING DRIVERS
Not applicable.
RATING SENSITIVITIES
Not applicable as the rating has been withdrawn.
GAJAH TUNGGAL: Moody's Lowers CFR to B3 & Alters Outlook to Stable
------------------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating of
Gajah Tunggal Tbk (P.T.) to B3 from B2.
At the same time, Moody's has downgraded the ratings on $250
million of senior secured notes due August 2022 to B3 from B2.
Moody's has also changed the outlook for all ratings to stable from
negative.
RATINGS RATIONALE
"The downgrade primarily reflects GJTL's very weak liquidity
position and debt structure, given its increased reliance on
short-term funding and potential for covenant pressure," says
Stephanie Cheong, a Moody's Analyst.
"The downgrade also reflects the prolonged deterioration in GJTL's
operating performance and our expectation that the company's
financial profile is unlikely to improve materially in 2019," says
Cheong, who is Moody's lead analyst for GJTL. "GJTL's credit
metrics are currently below our tolerance levels for the rating and
will likely remain weaker than the thresholds set for the rating
over the next 12-18 months."
The company reported around $51 million in cash on its balance
sheet at June 30, 2019, against $145 million of debt coming due
over the next 12 months, namely, $95 million of short-term
revolving working capital loans, of which the facilities mature
over October 2019 to February 2020, and large debt amortization
payments of $12.5 million per quarter under its syndicated bank
loan, which will step up to $15.6 million each quarter from October
2020 onwards.
Moody's therefore expects GJTL's weak liquidity position will
necessitate a high level of reliance on short-term working capital
facilities in the next 12-18 months in order to meet its basic cash
requirements. Nevertheless the B3 ratings and stable outlook
incorporate Moody's expectation that GJTL will successfully extend
its working capital facilities as and when they come due, in the
absence of which the ratings would likely face further immediate
downward pressure.
GJTL is required to maintain net debt/EBITDA and DSCR of 4.50x and
1.05x in accordance with the covenants in its $250 million senior
secured loan. As of June 30, 2019, the covenant calculation was
4.19x and 1.07x, leaving little buffer in the event of further raw
material cost or currency volatility.
The company's operating performance as measured by EBITDA margin
has eroded to 11.6% for the twelve months ending June 30, 2019, the
lowest level since 2008. The decline in margins was driven mainly
by a weaker Rupiah as well as raw material cost pressures. While
GJTL reports and earns most of its revenue in IDR, almost all of
its raw material costs and debt obligations are denominated or
linked to USD. As a result, the company's leverage -- as measured
by debt/EBITDA -- remained high at 5.2x for the twelve months
ending June 30, 2019.
Despite modest growth in revenues, rising rubber prices in 1H 2019
and current Rupiah levels of above 14,000 suggest continued
pressures on margins over the next 12-18 months. As a result,
Moody's does not expect a quick deleveraging for GJTL.
The rating also incorporates governance risks arising from the
company's concentrated ownership structure, weak financial
management and related party transactions.
Nonetheless, GJTL's ratings continue to be supported by the
company's (1) leading market position in the Indonesian bias and
motorcycle replacement tire market; (2) a balanced product mix
among radial, bias and motorcycle tires; and (3) solid geographic
diversification of sales.
A downgrade would likely occur if there is a deterioration in
liquidity, either due to declining cash balances, a loss in access
to its working capital lines or a failure to meet covenant
requirements.
The ratings could be upgraded following: (1) an improvement in its
liquidity position such that GJTL increases its covenant cushion
and materially reduces its reliance on short-term funding; and (2)
a sustained improvement in EBITDA margins towards 15%, generating
positive free cash flow and reducing debt levels. Further, an
upgrade would require GJTL to maintain debt/EBITDA below 4.5x.
The principal methodology used in these ratings was Global
Automotive Supplier Industry published in June 2016.
Gajah Tunggal Tbk (P.T.), headquartered in Jakarta, Indonesia, is
Southeast Asia's largest integrated tire manufacturer, with
installed capacity to produce 55,000 passenger car radial tires,
14,500 bias tires, 95,000 motorcycle tires, and 2,000 truck and bus
radial tires per day. The company also has capacity to produce
40,000 tons and 75,000 tons of tire cord and synthetic rubber per
year, respectively, for both internal consumption and third-party
sales.
GJTL's key shareholders include Denham Pte Ltd (49.5%), a
subsidiary of the Chinese tire manufacturer Giti Tire, and
Compagnie Financiere Michelin SCmA (10%, A3 stable). The remaining
shares are publicly traded on the Indonesian Stock Exchange.
=====================
N E W Z E A L A N D
=====================
MTF RAMBLER: Fitch Assigns BB+ Rating on Class E Notes
------------------------------------------------------
Fitch Ratings assigned final ratings to MTF Rambler Trust 2019's
pass-through floating-rate notes. The issuance consists of notes
backed by a pool of first-ranking New Zealand automotive loan
receivables originated by Motor Trade Finance Limited (MTF). The
notes were issued by Trustees Executors Limited as trustee for MTF
Rambler Trust 2019.
MTF Rambler Trust 2019
Current Rating Prior Rating
Class A LT AAAsf New Rating previously at AAA(EXP)sf
Class B LT AAsf New Rating previously at AA(EXP)sf
Class C LT Asf New Rating previously at A(EXP)sf
Class D LT BBB+sf New Rating previously at BBB+(EXP)sf
Class E LT BB+sf New Rating previously at BB+(EXP)sf
Seller LT NRsf New Rating previously at NR(EXP)sf
KEY RATING DRIVERS
Obligor Default Risk: Fitch derived borrower risk-tier-specific
default base-case expectations using historical loss data since
2007. Distinct gross default base cases and multiples were set for
high, medium and low risk-graded borrowers. On a weighted-average
(WA) portfolio level, the gross default base case is 2.7%, with a
'AAAsf ' default multiple of 6.1x and the recovery base case is
45%, with a 'AAAsf' recovery haircut of 50%. Default expectations
are based on an asset pool that Fitch stressed to portfolio
parameters, applicable during the transaction's initial two-year
revolving period.
Fitch expects stable asset performance, supported by sustained
economic growth in New Zealand. Fitch forecasts average GDP growth
of 2.8% in 2019 and 2.7% in 2020, with net migration easing but
remaining supportive of economic growth.
Cash-Flow Dynamics: Fitch completed full cash-flow modelling and
determined that the rated notes pass all predetermined stresses
implied at their respective rating levels.
Structural Risk: Fitch evaluated structural risk by reviewing
transaction documentation and structural features. A liquidity
reserve - sized at 1% of the outstanding note balance - and an
excess-spread reserve that traps excess income during deteriorating
arrears performance support the rated classes of notes.
Counterparty Risk: Fitch evaluated counterparty risk by reviewing
transaction documentation and structural features that reduce
structural risk and counterparty exposure.
Servicer and Operational Risks: All receivables were originated by
MTF, which demonstrated adequate capability as originator,
underwriter and servicer. Fitch undertook an onsite operational and
file review and found that the operations of the originator and
servicer were comparable with those of other auto and equipment
lenders.
RATING SENSITIVITIES
Unanticipated increases in the frequency of defaults and loss
severity on defaulted receivables could produce loss levels higher
than Fitch's base case and is likely to result in a decline in
credit enhancement and remaining loss-coverage levels available to
the notes. Decreased credit enhancement may make certain note
ratings susceptible to negative rating action, depending on the
extent of the coverage decline. Hence, Fitch conducts sensitivity
analysis by stressing a transaction's initial base-case
assumptions.
Rating Sensitivity to Increased Default Rates
Notes: A/B/C/D/E
Original rating: AAAsf/AAsf/Asf/BBB+sf/BB+sf
Defaults increase 10%: AA+sf/AA-sf/A-sf/BBBsf/BB+sf
Defaults increase 25%: AAsf/A+sf/BBB+sf/BBBsf/BBsf
Defaults increase 50%: AA-sf/A-sf/BBBsf/BBB-sf/BB-sf
Rating Sensitivity to Reduced Recovery Rates
Notes: A/B/C/D/E
Original rating: AAAsf/AAsf/Asf/BBB+sf/BB+sf
Recoveries decrease 10%: AA+sf/AA-sf/Asf/BBB+sf/BB+sf
Recoveries decrease 25%: AA+sf/AA-sf/A-sf/BBBsf/BBsf
Recoveries decrease 50%: AA+sf/A+sf/BBB+sf/BBB-sf/BB-sf
Rating Sensitivity to Increased Defaults and Reduced Recoveries
Notes: A/B/C/D/E
Original rating: AAAsf/AAsf/Asf/BBB+sf/BB+sf
Defaults increase 10%/recoveries decrease 10%: AA+sf/A+sf/A
sf/BBBsf/BB+sf
Defaults increase 25%/recoveries decrease 25%:
AA-sf/Asf/BBBsf/BBB-sf/BB-sf
Defaults increase 50%/recoveries decrease
50%:Asf/BBBsf/BB+sf/BBsf/
Q CARD: Fitch Assigns Bsf Rating on Class F-2019-1 Notes
--------------------------------------------------------
Fitch Ratings assigned ratings to Q Card Trust's issuance of
NZD300.0 million of floating-rate notes. The transaction is an
asset-backed securitisation programme of credit card receivables
featuring a multiclass structure that will purchase eligible
receivables from subsidiaries of the seller, Flexi Cards Limited,
on a revolving basis. Proceeds of the issuance will be used to
refinance the redemption of five series of notes and to purchase
additional receivables. The notes are issued by The New Zealand
Guardian Trust Company Limited in its capacity as trustee of Q Card
Trust.
The ratings are as follows:
Class A-2019-2 notes (NZFPFD1033R7): 'AAAsf'; Outlook Stable;
Class A-2019-3 notes (NZFPFD1034R5): 'AAAsf'; Outlook Stable;
Class B-2019-2 notes (NZFPFD1035R2): 'AAsf'; Outlook Stable;
Class C-2019-2 notes (NZFPFD1036R0): 'Asf'; Outlook Stable;
Class D-2019-1 notes (NZFPFD1037R8): 'BBBsf'; Outlook Stable;
Class E-2019-1 notes (NZFPFD1038R6): 'BBsf'; Outlook Stable;
Class F-2019-1 notes (NZFPFD1039R4): 'Bsf'; Outlook Stable.
KEY RATING DRIVERS
Stable Credit Card Receivables' Performance: Charge-off performance
has remained stable over the last year with gross charge-offs
averaging 3.0%, below Fitch's steady-state assumption of 4.5%. The
monthly payment rate (MPR), a measure of how quickly consumers are
paying off their credit card debt, averaged 9.5% over the past
year, above Fitch's steady-state assumption of 7.5%. Yield has
remained steady over the past year, averaging 18.9%, above Fitch's
steady-state assumption of 17.0%. The Stable Outlook on the notes
reflects Fitch's expectations that the performance and loss
multiples will remain supportive of the ratings and be supported by
a stable macroeconomic environment in New Zealand.
Originator and Servicer Quality: Fitch believes Flexi Cards is an
effective and capable originator and servicer given its track
record. Fitch undertook an onsite operational review and found that
the operations of the originator and servicer were comparable with
other non-bank credit card providers.
Mitigated Counterparty Risk: Fitch's ratings on the notes are
dependent on the financial strength of certain counterparties.
Fitch believes this risk is currently mitigated by the ratings of
the applicable counterparties to the transaction. Counterparty risk
was evaluated in the initial transaction analysis through the
review of transaction documentation, legal opinion and structural
features.
Mitigated Interest Rate Risk: Interest basis risk is mitigated
through interest rate swaps and other interest rate risk is
currently mitigated via available CE.
RATING SENSITIVITIES
Fitch has evaluated the sensitivity of the existing ratings to
decreased yields, increased charge-offs and decreased MPR over the
life of the transaction. The model indicates the note ratings are
sensitive to an increase in defaults and a reduction in MPR, with
less sensitivity to yield reduction. The full results of the
analysis are shown:
Rating sensitivity to increased charge-off rate:
Current ratings for class A, class B, class C, class D, class E,
class F (steady state: 4.5%): 'AAAsf'; 'AAsf'; 'Asf','BBBsf',
'BBsf', 'Bsf'.
Increase base case by 25%: 'AAAsf'; 'AA-sf'; 'Asf', 'BBBsf',
'BBsf', 'BB-sf'.
Increase base case by 50%: 'AA+sf'; 'A+sf'; 'A-sf'', 'BBB-sf',
'BB-sf', 'B+sf'.
Increase base case by 75%: 'AA+sf'; 'Asf', 'BBB+sf', 'BB+sf',
'B+sf', 'Bsf'.
Rating sensitivity to reduced MPR:
Current ratings for class A, class B, class C, class D, class E,
class F (steady state: 7.5%): 'AAAsf'; 'AAsf'; 'Asf','BBBsf',
'BBsf', 'Bsf'.
Reduce MPR by 15%: 'AA+sf'; 'AA-sf'; 'A-sf', 'BBBsf', 'BBsf',
'BB-sf'.
Reduce MPR by 25%: 'AA+sf'; 'Asf'; 'BBB+sf'', 'BBB-sf', 'BB-sf',
'B+sf'.
Reduce MPR by 35%: 'AA-sf'; 'A-sf'; 'BBB-sf'', 'BB+sf', 'B+sf',
'Bsf'.
Rating sensitivity to reduced yield:
Current ratings for class A, class B, class C, class D, class E,
class F (steady state: 17.0%): 'AAAsf'; 'AAsf'; 'Asf','BBBsf',
'BBsf', 'Bsf'.
Reduce yield by 15%: 'AAAsf'; 'AAsf'; 'Asf', 'BBB+sf', 'BBsf',
'BB-sf'.
Reduce yield by 25%: 'AAAsf'; 'AAsf'; 'Asf'', 'BBBsf', 'BB-sf',
'B+sf'.
Reduce yield by 35%: 'AAAsf'; 'AAsf'; 'A-sf', 'BBB-sf', 'B+sf',
'Bsf'.
=================
S I N G A P O R E
=================
HYFLUX LTD: To "Engage Exclusively" with Utico Until August 26
--------------------------------------------------------------
Lee Meixian at The Business Times reports that Hyflux Ltd on August
16 updated that as negotiations with its potential white knight,
Utico, is the most advanced among all the potential investors, the
company intends to engage exclusively with Utico from now until
August 26.
This is the deadline for the company to enter into a definitive
agreement with Utico for the latter's intended investment in the
group, the report says.
"The company and its advisors will negotiate diligently with Utico
with a view to entering into a definitive agreement by 26 Aug 2019.
The company will make the appropriate announcements as and when
there are any further material developments on these matters,"
Hyflux said, BT relays.
BT says Utico had earlier agreed to take an 88 per cent stake in
Hyflux through a SGD300 million equity injection and a SGD100
million shareholder loan, and is engaging with Hyflux's creditors
to work out the details of the rescue plan.
Shares in Hyflux have been suspended from trading since May last
year, the report 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.
SK JEWELLERY: Appoints Liquidators for Closing of Bullion Unit
--------------------------------------------------------------
Annabeth Leow at The Business Times reports that Catalist-listed SK
Jewellery Group's dormant, loss-making bullion unit was put into
liquidation after shareholder and creditor meetings on August 16,
the board has disclosed.
According to the report, Lim Soh Yeh and Lynn Ong of Acutus
Advisory have been appointed as the liquidators for the creditors'
voluntary liquidation process involving 70 per cent-owned SK
Bullion.
BT relates that SK Jewellery has said that the liquidation of SK
Bullion is not expected to have a material impact on the net
tangible assets or earnings per share of the group for the year to
Dec. 31.
SK Bullion generated a post-tax loss of SGD1.09 million for the
year to Dec 31, 2018 and had a net tangible liability position of
about SGD700,000 as at that date, the report discloses.
The group's board said in May that it decided to shutter the
business amid issues such as weak market sentiment and increasing
compliance costs in its bullion operations, adds BT.
*********
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
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*** End of Transmission ***