/raid1/www/Hosts/bankrupt/TCRAP_Public/191220.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
Friday, December 20, 2019, Vol. 22, No. 254
Headlines
A U S T R A L I A
ALITA RESOURCES: Creditors OK Rescue Plan from China Hydrogen
AUSTRALIAN HOUSE: First Creditors' Meeting Set for Jan. 2
CHANCE PROPERTY: Second Creditors' Meeting Set for Jan. 6
LENDLEASE GROUP: Sells Troubled Engineering Business to Acciona
NETWORX CONSTRUCTION: First Creditors' Meeting Set for Dec. 31
OMNIFLOOR AUSTRALIA: First Creditors' Meeting Set for Dec. 31
PROJECT BUILT: First Creditors' Meeting Set for Dec. 30
VISIONX AUDIO: First Creditors' Meeting Set for Dec. 31
C H I N A
CHINA SOUTH: Fitch Affirms B LongTerm IDR, Outlook Stable
HENGFENG BANK: To Get CNY100BB Bailout from Sovereign-Wealth Fund
H O N G K O N G
PANDA GREEN ENERGY: S&P Lowers ICR to 'CC' On Exchange Offer
[*] HONG KONG: Shipping Industry Struggles in Stormy Waters
I N D I A
ACTIF CORP: Insolvency Resolution Process Case Summary
AD VICTORIAM VENTURES: Insolvency Resolution Process Case Summary
AG CONVEYING: Insolvency Resolution Process Case Summary
ANGEL PAPERS: CRISIL Maintains 'B' Debt Ratings in Not Cooperating
ANNIES APPAREL: Insolvency Resolution Process Case Summary
ASPEN BIOPHARMA: Insolvency Resolution Process Case Summary
B R KNITWEARS: Insolvency Resolution Process Case Summary
BHAGWATI TIMBER: CRISIL Hikes Rating on INR1cr Loan to B+
BHAMBHANI SHIPPING: Insolvency Resolution Process Case Summary
BOLTON PETFORMS: CRISIL Hikes Rating on INR8.6cr Term Loan to B
CROWN REALTECH: Insolvency Resolution Process Case Summary
CURA HEALTHCARE: Insolvency Resolution Process Case Summary
ELECTRA GLOBAL: Insolvency Resolution Process Case Summary
GIRINDRA HOSPITALITY: CRISIL Keeps D Debt Rating in Not Cooperating
GK-AUTOPAL LIGHTING: CRISIL Keeps 'B' Rating in Not Cooperating
GUJARAT EXPORT: CRISIL Keeps D on INR15cr Credit in Not Cooperating
HBS CITY: CRISIL Keeps D Rating in INR11cr Loans in Not Cooperating
HOWRAH MILLS: Insolvency Resolution Process Case Summary
INDIAN HOME: Insolvency Resolution Process Case Summary
JHUNJHUNWALA OIL: CRISIL Keeps 'D' Ratings in Not Cooperating
KIEON DEVELOPERS: Insolvency Resolution Process Case Summary
KONNECTING INDIA: CRISIL Keeps D on INR12cr Debt in Not Cooperating
KRITIKA ENTERPRISES: CRISIL Keeps D Debt Rating in Not Cooperating
LOHR INDIA: CRISIL Keeps D in INR13cr Loans in Not Cooperating
MD USMAN: CRISIL Lowers Rating on INR3.35cr Cash Loan to B+
MISA SERVICES: Insolvency Resolution Process Case Summary
MOHAN GEMS: CRISIL Keeps D in INR350 Loans in Not Cooperating
ONE WORLD: Insolvency Resolution Process Case Summary
P.K. LAXMI MILL: CRISIL Keeps B in INR12cr Loan in Not Cooperating
PERFACT COLOR: Insolvency Resolution Process Case Summary
QULUX TILES: CRISIL Lowers Rating on INR4.3cr Cash Loan to 'D'
R M H HOSIERY: Insolvency Resolution Process Case Summary
RADHAKRISHNA CONTRACTORS: CRISIL Cuts Rating on INR5cr Loan to B+
RAINBOW DENIM: Insolvency Resolution Process Case Summary
RAINI INDUSTRIES: CRISIL Cuts Rating on INR10cr Loans to 'C'
RANVIK AUTOCOMPONENTS: CRISIL Cuts Rating on INR5.85cr Loan to D
RELIABLE PAPER: Insolvency Resolution Process Case Summary
RNA CORP PRIVATE: Insolvency Resolution Process Case Summary
SB LIFESPACES: CRISIL Moves B+ From Not Cooperating Category
SHELTREX DEVELOPERS: Insolvency Resolution Process Case Summary
SHREE ASHTVINAYAK: Insolvency Resolution Process Case Summary
SHREE REFRIGERATIONS: CRISIL Cuts Rating on INR7.5cr Loan to D
SRI BALAJI: Insolvency Resolution Process Case Summary
SUNGRACIA TILES: Insolvency Resolution Process Case Summary
SURYA PANEL: CRISIL Lowers Rating on INR15cr Term Loan to D
SWASTIK AQUA: Insolvency Resolution Process Case Summary
URAL INDIA: Insolvency Resolution Process Case Summary
VISA PHARMACEUTICALS: Insolvency Resolution Process Case Summary
M A L A Y S I A
BRAHIM'S HOLDINGS: Says PwC Resigned After Mutual Agreement
N E W Z E A L A N D
TAMARIND TARANAKI: BorrelliWalsh Appointed as Liquidators
S R I L A N K A
SRI LANKA: Fitch Affirms B IDR & Alters Outlook to Negative
V I E T N A M
VIETNAM: Moody's Confirms Ba3 Unsec. Ratings, Alters Outlook to Neg
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A U S T R A L I A
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ALITA RESOURCES: Creditors OK Rescue Plan from China Hydrogen
-------------------------------------------------------------
Ng Ren Jye at The Business Times reports that the creditors of
Alita Resources have approved a deed of company arrangement (DOCA)
from a Chinese firm for the acquisition of Alita's assets.
China Hydrogen Energy (CHE) and its Australian subsidiary Liatam
Mining had proposed the DOCA this month, according to the report.
CHE is a special purpose vehicle for an unidentified Chinese
party.
In Australia, a DOCA is a rescue plan that allows a company to
restructure its debt and avoid insolvency. It is a binding
arrangement between the company and its creditors governing how the
company's affairs will be dealt with, the report notes.
BT says Alita's deed administrators KordaMentha will apply to the
Supreme Court of Western Australia to transfer 100 per cent of
Alita shares to Liatam for nil consideration.
If successful, this will result in the delisting of Alita from the
Singapore Exchange (SGX) and the Australian Securities Exchange,
the report states.
The court will only approve the transfer of shares if it is
satisfied that doing so will not unfairly prejudice the interests
of Alita shareholders.
Information will be provided to shareholders in the coming days,
including how they may oppose the share transfer application,
KordaMentha said in an SGX filing on Dec. 19.
According to BT, the DOCA will become effective after conditions
precedent are satisfied. These include the court's approval of the
share transfer, the establishment of two creditors' trusts, and the
approval of Australia's Foreign Investment Review Board.
CHE and Liatam submitted their DOCA proposal after CHE provided a
short-term A$70 million (S$65.3 million) loan to Alita to fully
repay its defaulted A$40 million loan from Galaxy Resources, BT
discloses.
Alita suspended trading of its shares on SGX on Sept. 3, after
going into voluntary administration, the report notes. The counter
last traded at 7.8 Singapore cents on Aug. 8.
About Alita Resources
Alita Resources Limited operates as a mineral exploration and
excavation company. The Company explores and produces lithium and
tantalum concentrates. Alita Resources offers its services in
Australia.
Richard Tucker and John Bumbak of Kordamentha were appointed as
administrators of Alliance Mineral Assets Exploration Pty Ltd,
Tawana Gold Pty Ltd, and Waba Holdings Pty Ltd on Aug. 28, 2019.
AUSTRALIAN HOUSE: First Creditors' Meeting Set for Jan. 2
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Australian
House & Land Pty Ltd will be held on Jan. 2, 2020, at 10:00 a.m. at
The Grace Hotel, at 77 York Street, in Sydney, NSW.
Kenneth Whittingham was appointed as administrator of Australian
House on Dec. 18, 2019.
CHANCE PROPERTY: Second Creditors' Meeting Set for Jan. 6
---------------------------------------------------------
A second meeting of creditors in the proceedings of Chance Property
Group Pty Ltd as the Trustee for the Janebrook Shopping Centre Unit
Trust has been set for Jan. 6, 2020, at 2:00 p.m. at the offices of
Cor Cordis, Mezzanine Level, at 28 The Esplanade, in Perth, WA.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 5, 2020, at 4:00 p.m.
Jeremy Joseph Nipps and Clifford Stuart Rocke of Cor Cordis were
appointed as administrators of Chance Property on Nov. 27, 2019.
LENDLEASE GROUP: Sells Troubled Engineering Business to Acciona
---------------------------------------------------------------
Sarah Danckert at The Sydney Morning Herald reports that Lendlease
has sold its troubled engineering business, which is behind the
over-budget and delayed Melbourne Metro and the Sydney NorthConnex
projects, to Spanish construction group Acciona.
But the Spaniards have left the Victorian government's flagship
Melbourne Metro rail tunnel project on the negotiating table, and
it is not part of the deal, SMH relates.
As revealed in June this year, market sources close to the company
and the Melbourne Metro project have put the cost blowout on
project at as much as AUD2 billion, though more recently sources
have put the blowout at AUD3 billion, according to SMH.
SMH says Acciona will pay AUD180 million to Lendlease in a bargain
basement price for the division beset with infrastructure projects
weighed down with cost overruns and delays.
Analysts at Merril Lynch have forecast the business to be worth
AUD500 million, but concerns over cost blowouts could shift that
amount downwards.
The sale will mark Lendlease's return to its bread and butter
business of property development and building construction.
Lendlease has been putting the finishing touches to the deal since
November, as foreshadowed by The Age and The Sydney Morning
Herald.
The sale announcement comes as the consortium behind the Melbourne
Metro has been locked in negotiations with the Victorian state
government over cost blowouts.
Under the terms of the engineering sale agreement, Acciona will
acquire the business excluding the NorthConnex and Kingsford Smith
Drive projects, which will be completed by Lendlease and are at
least 90 per cent complete.
"The Melbourne Metro project is currently excluded, however is
subject to further negotiation," the report quotes Lendlease chief
executive Steve McCann as saying.
The cost of early construction work on the AUD11 billion Metro
Tunnel is set to blowout by AUD150 million, the Victorian
Auditor-General has revealed, SMH relays.
"As previously indicated by Lendlease, the start of this project
has been slower than anticipated. There have been issues in
relation to the scope and costs of the project."
"The consortium has been working with the [Victorian] government on
a confidential basis to resolve these issues while delivering the
project to achieve the government's completion dates. As a result,
this project is currently being retained by Lendlease."
Lendlease is also still in the process of selling its services
business, the report notes. Mr McCann apologised to shareholders
and staff over the problems in its engineering business, adds SMH.
Lendlease Group offers property development, investment, and
construction services.
NETWORX CONSTRUCTION: First Creditors' Meeting Set for Dec. 31
--------------------------------------------------------------
A first meeting of the creditors in the proceedings of Networx
Construction Pty Ltd will be held on Dec. 31, 2019, at 11:00 a.m.
at the offices of Deloitte Financial Advisory Pty Ltd, Eclipse
Tower, Level 19, at 60 Station St, in Parramatta, NSW.
Michael James Billingsley and Neil Robert Cussen of Deloitte
Financial Advisory were appointed as administrators of Networx
Construction on Dec. 17, 2019.
OMNIFLOOR AUSTRALIA: First Creditors' Meeting Set for Dec. 31
-------------------------------------------------------------
A first meeting of the creditors in the proceedings of Omnifloor
Australia Pty Ltd will be held on Dec. 31, 2019, at 11:00 a.m. at
the offices of Cor Cordis, Level 29, at 360 Collins Street, in
Melbourne, Victoria.
Barry Wight, Daniel Juratowitch and Bruno Secatore of Cor Cordis
were appointed as administrators of Omnifloor Australia on Dec. 17,
2019.
PROJECT BUILT: First Creditors' Meeting Set for Dec. 30
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Project
Built (Holdings) Pty Ltd will be held on Dec. 30, 2019, at 10:00
a.m. at the offices of Cor Cordis, One Wharf Lane, Level 20, at 171
Sussex Street, in Sydney, NSW.
Andre Lakomy and Jason Tang of Cor Cordis were appointed as
administrators of Project Built on Dec. 16, 2019.
VISIONX AUDIO: First Creditors' Meeting Set for Dec. 31
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Visionx
Audio Visual Pty Ltd will be held on Dec. 31, 2019, at 11:00 a.m.
at the offices of Jirsch Sutherland, Level 27, at 259 George
Street, in Sydney, NSW.
Andrew John Spring and Sule Arnautovic of Jirsch Sutherland were
appointed as administrators of Visionx Audio on Dec. 17, 2019.
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C H I N A
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CHINA SOUTH: Fitch Affirms B LongTerm IDR, Outlook Stable
---------------------------------------------------------
Fitch Ratings affirmed the Long-Term Issuer Default Rating of China
South City Holdings Limited at 'B'. The Outlook is Stable. The
company's senior unsecured rating and the rating on its outstanding
US dollar senior notes have also been affirmed at 'B' with a
Recovery Rating of 'RR4'.
The ratings on CSC are supported by rising residential sales from
its projects in high-tier cities, a long record in integrated trade
centre development, and growing non-development income. The ratings
are constrained by limited project diversification and scale, a
weak industry outlook for trade centres, and its tight liquidity.
KEY RATING DRIVERS
Residential Sales Support Performance: Fitch expects CSC to
continue to rely on residential and multi-purpose properties to
provide cash flow for its land banking and construction needs, with
trade-centre sales continuing to underperform due to weak demand
from SMEs. Contracted sales rose by 22% to HKD15 billion in the
financial year ended March 2019 (FY19) and Fitch expects CSC to
reach its annual contracted sales target of HKD16 billion in FY20.
Residential and multi-purpose properties sales made up 87% and 84%
of contracted sales in FY19 and 1HFY20, respectively.
Stable Leverage: Fitch expects leverage - measured by net
debt/adjusted inventory, including investment property at cost - to
remain below 50% if CSC maintains prudent land acquisitions and
achieves satisfactory sales, as management plans. Leverage eased to
44.6% in 1HFY20 from 44.7% at FY19 and 46.3% at FY18. Cash outflow
for land acquisitions fell to CNY1.3 billion in FY18, from CNY4.8
billion in FY17. Fitch estimates that CSC's total land premium will
remain low in FY20, at about 15% of sales proceeds.
Development Margin to Narrow: Fitch estimates that CSC's overall
development margin will narrow by 1pp-2pp in the next three years
due to increased revenue recognition from lower-margin residential
units as well as multi-purpose properties, which have lower gross
profit margins. CSC's gross profit margin for property development,
including capitalised interest, narrowed to 34.8% in 1HFY20, from
40.9% in FY19 and 39.5% in FY18. Trade centres and residential
units accounted for 22% and 72%, respectively, of development
revenue in FY19.
Growing Non-Development EBITDA: Fitch expects CSC's non-development
EBITDA interest coverage to grow but will remain below 0.6x for the
next 12-18 months, the level above which the rating may be
meaningfully supported. However, the diversification of income
enhances the company's cash flow. Income from CSC's non-development
business increased by 15% yoy to HKD2.3 billion in FY19, driven by
growth in its outlet, property management services and logistics
and warehousing businesses. Its non-development EBITDA interest
coverage was 0.4x in 1HFY20 and FY19.
DERIVATION SUMMARY
CSC's eight projects are in Tier 1 and 2 cities in China, which are
better located than those of the other Fitch-rated trade centre
developer Hydoo International Holding Limited (B-/Stable), whose
10-12 projects are mainly in Tier 3 and 4 cities. This translates
into better sales and EBITDA margins compared with Hydoo and other
competitors in the industry. CSC generated HKD12 billion in
contracted sales in FY18, compared with Hydoo's CNY3 billion of
sales in 2018.
CSC was also able to generate HKD2 billion of non-development
income in FY18. The non-development segment is still small in terms
of EBITDA generation but may be able to support debt interest
service in the future. CSC's leverage of 46.3%, measured by net
debt/adjusted inventory (including investment property at cost) at
FY18 is comparable with that of other 'B' rated peers.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Property development contracted sales reach HKD16 billion in
FY19 and HKD19 billion in FY20
- Property development EBITDA margin (excluding capitalised
interest and government grants) sustained above 25% in FY19-FY21.
- Non-development income to increase by about 15% each year in
FY19-FY21, with EBITDA margin around 20%.
- Construction and land acquisition cash outflow to account for
60%-70% of sales proceeds in FY19-FY21.
No changes in Recovery Rating assumptions from the rating action
commentary published on August 13, 2018.
RATING SENSITIVITIES
Developments that may, individually or collectively, lead to
positive rating action include:
- Non-development EBITDA/cash interest expense sustained above
0.6x (FY19:0.4x)
- Net debt/adjusted inventory (including investment property at
cost) sustained below 40%
Developments that may, individually or collectively, lead to
negative rating action include:
- EBITDA margin sustained below 20% (FY19: 27%)
- Net debt/adjusted inventory (including investment property at
cost) sustained above 50%
- Deterioration in liquidity or difficulty in debt refinancing
LIQUIDITY AND DEBT STRUCTURE
Tight but Manageable Liquidity: CSC had cash and cash equivalents,
including restricted cash, of around HKD9.3 billion and unutilised
banking facilities of CNY15.4 billion at end-September 2019,
covering short-term debt of HKD14.5 billion. CSC issued USD150
million of offshore notes in December 2019 for refinancing, which
alleviated its refinancing pressure, although the coupon of its
recently issued senior notes due 2021 and 2022 were at 11.875% and
11.5%, respectively, compared with its average funding cost of 7.2%
in FY19.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of 3 - ESG issues are credit
neutral or have only a minimal credit impact on the entity, either
due to their nature or the way in which they are being managed by
the entity.
HENGFENG BANK: To Get CNY100BB Bailout from Sovereign-Wealth Fund
-----------------------------------------------------------------
The Wall Street Journal reports that China's sovereign-wealth fund
is coming to the aid of a troubled lender in a CNY100 billion
(US$14.28 billion) bailout, the latest show of government support
for the banking sector, which has come under intensifying financial
stress as the economy slows.
Hengfeng Bank, based in eastern China's Shandong Province, will
sell 100 billion shares at a valuation of CNY1 per share, almost
all of them to government-backed investors, the Journal relates
citing the bank and one of its backers.
According to the Journal, Hengfeng said Central Huijin Investment
Ltd., the investment arm of China's sovereign-wealth fund that owns
stakes in major state-owned banks and other financial institutions,
will purchase 60% of Hengfeng's 100-billion-share issuance.
Shandong Financial Asset Management Co., a local-government-backed
entity, will purchase another 36 billion shares, while Singapore's
United Overseas Bank Ltd., which holds a minority stake in Hengfeng
Bank, and other unnamed investors will purchase the remaining 4
billion shares, the Journal says.
The investment is subject to regulatory approval, Hengfeng said,
without offering further details, the report notes.
The Journal notes that China's cooling economy and the government's
efforts to crack down on financial risk-taking have pressured the
nation's lenders, many of which extended credit to risky borrowers
in recent years while portraying the loans as healthy.
In May, Baoshang Bank, a regional lender in northern China, became
the first Chinese bank in decades to be taken over by the central
government, the Journal recalls.
According to the report, Chinese authorities said they would inject
fresh capital into the bank and protect deposits and investment for
depositors and most of investors.
Since then, authorities have explored ways to help Hengfeng Bank
and other regional lenders.
Last month, two rural lenders in central and northeastern China
experienced bank runs after rumors of insolvency circulated online,
the Journal recalls. The two banks were restored to health after
local government intervention.
The Journal says China's banking regulator has acknowledged growing
financial risks among the nation's small lenders, but has described
the risks as generally manageable.
Analysts, however, generally forecast more bailouts in the coming
year as the Chinese economy continues to slow with few signs that
Beijing will backtrack in campaign to crack down on risky lending,
the report states.
The Journal adds that Hengfeng Bank hasn't published annual
financial statements for the past two years, after local
authorities investigated its former chairman in relation to
accusations of disciplinary violations, a euphemism for corruption
charges in China.
In its most recent annual earnings report, issued in 2016,
Hengfeng's ratio of bad loans or those close to going bad had
climbed to near 6%, a sign of stress after years of rapid
expansion, the Journal discloses.
In late 2017, the central banking regulator slapped CNY167 million
in penalties on the lender for more than a dozen violations,
including providing false data in statements and investing in risky
assets as a way of dealing with bad loans, according to the
Journal.
A new chairwoman and management team were designated by local
authorities earlier this year to oversee the lender's daily
operations, the Journal adds.
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H O N G K O N G
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PANDA GREEN ENERGY: S&P Lowers ICR to 'CC' On Exchange Offer
------------------------------------------------------------
On Dec. 18, 2019, S&P Global Ratings lowered the long-term issuer
credit rating on Panda Green Energy Group Ltd. (PGE) to 'CC' from
'CCC+'. S&P also lowered the issue rating on the notes to 'CC' from
'CCC'. The ratings remain on CreditWatch with developing
implications.
S&P would view PGE's proposed exchange offer, if finalized, as a
distressed exchange because consenting lenders will not receive
compensation commensurate with the existing transaction.
The current three-year US$350 million notes have an 8.25% coupon.
On Dec. 16, 2019, PGE proposed that existing holders, should they
wish to participate in the exchange offer, would receive two-year
US$350 million 8.0% senior unsecured notes, targeted to be issued
on Jan. 6, 2020. Every US$1,000 of the principal of the existing
notes will be exchanged for US$1,001 of the new notes
(incorporating capitalized interest).
S&P said, "Although the exchange does not propose any "haircut" for
the principal, we view the exchange offer as distressed given the
lack of adequate compensation for noteholders accepting the offer.
This is because the noteholders: (1) face a potential two-year
deferred maturity; and (2) receive a lower interest rate for the
new notes, which is likely to be rated materially lower than the
'B+' issue rating we assigned to the current notes in January
2017.
"In our opinion, PGE considers the exchange offer to be a backup
plan. We expect the company to terminate the exchange offer if it
completes the share purchase agreement with Beijing Energy around
Jan. 6, 2020, given the new parent is likely to provide financial
support to repay the notes."
Nevertheless, if PGE fails to close the agreement with Beijing
Energy on or before March 31, 2020, PGE is obligated to redeem in
full the new notes at par value prior to the first coupon payment
date, which will probably be on July 7, 2020. We have very low
visibility on how PGE will meet its short-term debt obligations if
the share purchase agreement is not signed.
CreditWatch
S&P said, "We expect to resolve the CreditWatch at the close of the
exchange transaction, probably around early January 2020. We would
likely lower the issuer credit rating to 'SD' and the issue credit
rating to 'D' if the transaction is executed. We may also raise the
rating if the exchange offer is terminated, and the U.S. dollar
notes are repaid, or refinanced on reasonable terms, which would
likely be based upon timely financial support from new or existing
shareholders."
[*] HONG KONG: Shipping Industry Struggles in Stormy Waters
-----------------------------------------------------------
Wen Simin and Yang Ge at Caixin Global report that shipping trade
through Hong Kong dropped for a 22nd straight month in November,
and is likely to come under continued pressure due to fallout from
the U.S.-China trade war and a longer-term migration of low-end
manufacturing to Southeast Asia.
According to Caixin, Hong Kong was one of the world's busiest ports
between 1987 and 2004, acting as a transshipment center that fed on
China's rapid economic rise during that time. But the port has sunk
in the global rankings over the last decade as new, more
sophisticated shipping centers have sprung up in China, especially
in the nearby cities of Guangzhou and Shenzhen. A more recent
challenge from regional rival Singapore is also taking a toll,
Caixin says.
Container throughput at Hong Kong's ports fell 7.4% year-on-year in
November when 1.52 million twenty-foot equivalent units (TEUs)
passed through the city's ports, accelerating from October's 4.1%
year-on-year decline, Caixin discloses citing data from the Hong
Kong Maritime and Port Board. Throughput was down 6.2% year-on-year
in the first 11 months of the year.
The city's longest decline saw throughput drop for 25 consecutive
months between July 2014 and July 2016, the Maritime and Port
Board's data showed, Caixin relays. But with the busy Christmas
shipping season now past and the weak Chinese New Year season
coming up, industry watchers said the falling trend could be hard
to reverse in the short term - meaning the current streak could end
up setting a new record, Caixin relates.
Caixin says the limping trade volumes come as U.S.-China trade has
dropped considerably during their trade war that has continued for
more than a year. Such trade is important for Hong Kong, which acts
as a transshipment center for many such goods. China exports to the
U.S. fell 23% year-on-year in November, dragging the country's
total export figure for the month down by 1.1%, according to the
latest Chinese customs data cited by Caixin.
At the same time, Hong Kong is also taking a hit as many lower-end
manufacturers that are major users of shipping services relocate to
Southeast Asia to avoid rising costs in China, Caixin notes. That
trend has accelerated with the trade war, as many manufacturers
also seek to diversify their global footprints to hedge against
trade conflicts.
One of the biggest beneficiaries of that geographic shift has been
Singapore, which acts as a major transshipping hub for Southeast
Asia, said Paul Tang, chief economist at Bank of East Asia, Caixin
relays. In contrast to Hong Kong's flagging numbers, Singapore's
November container throughput rose 8.4% to 3.27 million TEU - more
than double Hong Kong's volume, Caixin discloses.
According to Caixin, Tang said Hong Kong's shipping industry is
likely to continue feeling downward pressure, as global economic
growth slows and lingering effects of the U.S.-China trade war
result in declining orders. He added that in addition to the
manufacturing migration to Southeast Asia, the city is also facing
competition from nearby Chinese mainland ports like Guangzhou and
Shenzhen, which have lower costs, Caixin relays.
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ACTIF CORP: Insolvency Resolution Process Case Summary
------------------------------------------------------
Debtor: Actif Corporation Limited
Plot no. 65/4, Krishna Nagar
Village Samarvani
Silvassa (U.T. of D. & N.H.)
Silvassa Dadra & Nagar Haveli
Dn 396230
Insolvency Commencement Date: November 26, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: May 24, 2020
(180 days from commencement)
Insolvency professional: Vinodkumar Pukhraj Ambavat
Interim Resolution
Professional: Vinodkumar Pukhraj Ambavat
Room No. 40
9/15 Morarji Velji Bldg
1st floor, Dr. M.B. Velkar Street
Kalbadevi Road, Mumbai
Maharashtra 400002
E-mail: vinod.ambavat@ajallp.com
- and -
Ambavant Jain & Associates LLP
5B, Ground Floor, Onlooker Building
14, Sir P.M. Road
Fort, Mumbai 400001
India
E-mail: cirp.actif@gmail.com
Last date for
submission of claims: December 24, 2019
AD VICTORIAM VENTURES: Insolvency Resolution Process Case Summary
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Debtor: AD Victoriam Ventures Private Limited
Association, 39
Nehru Place
Delhi 110019
India
Insolvency Commencement Date: November 21, 2019
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: May 19, 2020
(180 days from commencement)
Insolvency professional: Anil Tayal
Interim Resolution
Professional: Anil Tayal
201, Sagar Plaza
District Centre
Laxmi Nagar
Delhi 110092
E-mail: caaniltayal@gamil.com
cirp.advictoriam@gmail.com
Last date for
submission of claims: December 19, 2019
AG CONVEYING: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: AG Conveying Systems Private Limited
Gat No. 322A, Plot No. 6 & 7
Pirangut, Pune 412111
Maharashtra
Insolvency Commencement Date: December 3, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: May 31, 2020
Insolvency professional: Rajesh S. Shah
Interim Resolution
Professional: Rajesh S. Shah
635/84, Siddharth
Vijayanagar Colony
Next to MSEDCL Building
Opp. to Neelayam Theatre
Sadashiv Peth
Pune 411030
Maharashtra
E-mail: rssah27@hotmail.com
Mobile: 9923700717
Last date for
submission of claims: December 24, 2019
ANGEL PAPERS: CRISIL Maintains 'B' Debt Ratings in Not Cooperating
------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Angel Papers Private
Limited (APPL) continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Long Term Loan 6 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with APPL for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of APPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on APPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of APPL continues to be 'CRISIL B/Stable Issuer not
cooperating'.
APPL is a Bettiah, Bihar, based company incorporated in 2012.
However, the commercial operation started in October 2014. The
company is engaged in manufacturing of kraft paper of 14-18bf and
100-180gsm specification, which is used in the packaging industry.
The operation of the company is managed by Mr. Rajesh Todi and Mr.
Ramesh Todi. The company has a manufacturing capacity of 50 tonnes
per day, currently operating at 50% capacity levels.
ANNIES APPAREL: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Annies Apparel Private Limited
Registered office:
2764/17, 2nd Floor
Hamilton Road
Mori Gate
Delhi 110006
Corporate office:
Flat No. 101, Vasu Villa
Amar Jyoti SOC. Compound
Opp. Telephone Exchange
S.V. Road, Kandivali (West)
Mumbai 400067
Insolvency Commencement Date: December 3, 2019
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: May 31, 2020
Insolvency professional: Rajiv Bajaj
Interim Resolution
Professional: Rajiv Bajaj
4/180, Ground Floor Backside
Subhash Nagar
New Delhi 110027
E-mail: rbajaip@gmail.com
cirpannies@gmail.com
Last date for
submission of claims: December 20, 2019
ASPEN BIOPHARMA: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Aspen Biopharma Labs Private Ltd
Biotech Park Phase-II, Plot 10
LalgadiMalakpet Village
Turkapalli
Shammerpet Mandal
RR Dist. Pin code 500078
Insolvency Commencement Date: November 29, 2019
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: May 26, 2020
Insolvency professional: AVS Krishna Mohan
Interim Resolution
Professional: AVS Krishna Mohan
Flat No. 42, Bhaskar Enclave
Road No. 7, Nagarjuna Nagar
Srinagar Colony
Hyderabad 500073
E-mail: avskmohan@gmail.com
- and –
FF 26, Raghavaratna Tower
Chirag Ali Lane, Abids
Hyderabad 500001
E-mail: irp.aspen@gmail.com
Last date for
submission of claims: December 18, 2019
B R KNITWEARS: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: M/s B R Knitwears Private Limited
Plot No. 672, Pace City-II
Sector-37, Gurgaon
HR 122001
Insolvency Commencement Date: November 21, 2019
Court: National Company Law Tribunal, Chandigarh Bench
Estimated date of closure of
insolvency resolution process: May 20, 2020
(180 days from commencement)
Insolvency professional: Mr. Naresh Kumar Goel
Interim Resolution
Professional: Mr. Naresh Kumar Goel
203, Vardhman Star Mall
Sector-19
Near Badkhal Mor Metro Station
Faridabad, Haryana 121002
E-mail: nkg1964@rediffmail.com
irp.brknitwear@gmail.com
Last date for
submission of claims: December 6, 2019
BHAGWATI TIMBER: CRISIL Hikes Rating on INR1cr Loan to B+
---------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facility of
Bhagwati Timber Store (BTS) to 'CRISIL B+/Stable' from 'CRISIL
B/Stable', and reaffirmed the short-term rating at 'CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Inland/Import
Letter of Credit 7 CRISIL A4 (Reaffirmed)
The upgrade reflects improvement in liquidity due to low bank limit
utilisation, which averaged 15.6% for the 12 months through
September 2019. Furthermore, the proprietor infused equity in
fiscal 2019 to support liquidity.
The ratings reflect BTS's modest scale of operations in the highly
fragmented timber trading industry, and low profitability. These
weaknesses are partially offset by the extensive experience of its
proprietor.
Key Rating Drivers & Detailed Description
Weakness:
* Modest scale of operations: Despite an increase in revenue to
INR22.96 crore in fiscal 2019 from INR14 crore in fiscal 2017,
scale remained small because of intense competition in the timber
trading business. This limits bargaining power against clients and
suppliers.
* Low profitability:
Operating margin was 1.2% in fiscal 2019 due to limited value
addition. Profitability will remain muted over the medium term.
Strengths:
* Extensive experience of the proprietor: BTS is promoted by Mr
Ishwarchand Garg, who has over three decades of experience in
timber trading and processing. This has helped the firm to
establish healthy relationships with suppliers and customers.
Liquidity Adequate
Bank limit utilization averaged 15.6% in the 12 months ended
September 30, 2019.
Outlook: Stable
CRISIL believes BTS will continue to benefit from the extensive
experience of its proprietor.
Rating Sensitivity factors
Upward factors:
* Increase in operating margin to more than 3%
* Improvement in working capital management
Downward factors:
* Decline in revenue with operating profitability of less than
0.5%, leading to stretched liquidity
* Large, debt-funded capital expenditure affecting financial risk
profile
BTS was set up as a proprietorship concern in 1984 by Mr
Ishwarchand Garg. It processes (cuts and saws with a capacity of
1,500 cubic feet per day) and trades in timber, including teakwood,
saal wood, and pinewood. It has a facility and warehouse in
Gandhidham, Gujarat; and two shops and a warehouse in Karnal,
Haryana.
BHAMBHANI SHIPPING: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Bhambhani Shipping Limited
Registered office & Corporate office:
Plot No. 206, Meera Hari Niwas
Opp Dhanalaxmi Bldg
Nr Telephone Exchange
SVP Nagar, Mhada
Andheri (West)
Mumbai 400053
Insolvency Commencement Date: November 28, 2019
Court: National Company Law Tribunal, Single Bench, Mumbai
Estimated date of closure of
insolvency resolution process: May 26, 2020
(180 days from commencement)
Insolvency professional: Mr. Vinod Radhakrishnan Nair
Interim Resolution
Professional: Mr. Vinod Radhakrishnan Nair
A-108, Om Rachana CHS
Sector-17, Vashi
Navi Mumbai 400705
E-mail: vinod@nairca.com
Last date for
submission of claims: December 20, 2019
BOLTON PETFORMS: CRISIL Hikes Rating on INR8.6cr Term Loan to B
---------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Bolton Petforms Private Limited (BPPL) to 'CRISIL B/Stable' from
'CRISIL D'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.9 CRISIL B/Stable (Upgraded from
'CRISIL D')
Proposed Long Term 0.5 CRISIL B/Stable (Upgraded from
Bank Loan Facility 'CRISIL D')
Term Loan 8.6 CRISIL B/Stable (Upgraded from
'CRISIL D')
The upgrade factors in timely debt servicing by the company in the
past six months.
The rating also factors BPPL's modest scale of operations in a
highly competitive industry, working capital intensive operations
and weak debt protection metrics. The weaknesses are partially
offset by the extensive experience of its promoter in the packaging
industry.
Analytical Approach
Crisil has treated unsecured loans of INR10.89 crore from the
promoter as 75% equity and 25% debt as the loans have remained in
business for more than 5 years and are interest free.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations in a highly competitive industry:
Scale of operations has been modest, with turnover of INR19.18
crore in fiscal 2019, due to intense competition.
* Working capital-intensive operations: Gross current assets (GCAs)
were high at 152 days as on March 31, 2019, driven by receivables
of 91 days and inventory of 65 days. High working capital intensity
also leads to negative cash flow from operations.
* Weak debt protection metrics: Debt protection metrics were weak
with interest coverage and net cash accrual to total debt ratios of
0.79 times and (0.04) time, respectively, for fiscal 2019.
Strength
* Extensive experience of the promoter: The company is managed by
Mr Vijaykumar, who started as a small manufacturer of packaged
drinking water called True Drops in 1998 in Villipuram, Tamil Nadu.
The company is a part of the Swashthik group which manufactures
polyethylene terephthalate (PET) preforms, high-density
polyethylene bottle caps, and PET single-stage bottles (direct
bottles).
Liquidity Poor
BPPL has poor liquidity marked by tightly matched cash accrual of
around Rs.1.1- 1.33 crore for fiscal 2020 and fiscal 2021 against
debt repayment obligations of INR1.06 cr per annum. The working
capital limits have been utilized at around 92% over the last
twelve months through October 2019. The company had low cash and
bank balance of INR0.07 cr as on March 31, 2019. However, the
liquidity is supported by unsecured loans from the promoter, which
stood at INR10.89 crore as on March 31, 2019.
Outlook: Stable
CRISIL believes BPPL will continue to benefit from the extensive
experience of the promoter.
Rating sensitivity factors
Upward factors:
* Increase in turnover with sustained profitability of 10-12%
* Improvement in working capital cycle
Downward factors:
* Sharp decline in operating performance with revenue falling below
INR6 crore
* Net cash accrual to current portion of long-term debt ratio of
less than 1.05 times
Incorporated in 2014, BPPL is a part of the Swashthik group. The
company manufactures PET preforms at its facility in Chennai. BPPL
is promoted by Mr Vijaykumar.
CROWN REALTECH: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: M/s. Crown Realtech Private Limited
2nd Floor, Rajindra House
E1/B1, Mohan Cooperative Industrial Estate
New Delhi 110044
Insolvency Commencement Date: December 6, 2019
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: January 6, 2020
Insolvency professional: Amit Agrawal
Interim Resolution
Professional: Amit Agrawal
H-63, Vijay Chowk
Laxmi Nagar
Delhi 110092
E-mail: amitagcs@gmail.com
crown.amitagcs@gmail.com
Classes of creditors: Allotees under a Real Estate project
Insolvency
Professionals
Representative of
Creditors in a class: Mr. Anuj Maheshwari
201, Harsh Bhawan
65, 64, Nehru Place
New Delhi 110019
E-mail: crown.anujmaheshwari@gmail.com
Mr. Sudhanshu Gupta
311, Agarwal Chamber-2
Plot No. 30, 31
Veer Savarkar Block
Opp. Metro Pillar No. 58
Shakarpur, East Delhi 110092
E-mail: sg_1973@rediffmail.com
Mr. Anil Tayal
201, Sagar Plaze
Plot No. 19
District Center
Laxmi Nagar
Delhi 110092
E-mail: caaniltayal@gmail.com
Last date for
submission of claims: December 23, 2019
CURA HEALTHCARE: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Cura Healthcare Private Limited
Plot No. A-32 Phase 1, MEPZ-SEZ
Tambaram, Kadapperi
Chennai 600045
Tamil Nadu
Insolvency Commencement Date: December 9, 2019
Court: National Company Law Tribunal, Chennai Bench
Estimated date of closure of
insolvency resolution process: June 6, 2020
Insolvency professional: Ms. Jayashree S Iyer
Interim Resolution
Professional: Ms. Jayashree S Iyer
C-15, Abhinav Kailash
19A Velachery Road, Saidapet
Chennai 600015
Tamil Nadu
E-mail: javashree2505@gmail.com
- and -
New No. 10 Old No. 41
Kirupasankari Street
West Mambalam
Chennai 600033
E-mail: cirp.cura@gmail.com
Last date for
submission of claims: December 25, 2019
ELECTRA GLOBAL: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Electra Global Resources Private Limited
A/33 Old Nagardas Road
Behind Dhobighat
Andheri-East
Mumbai 400069
Insolvency Commencement Date: November 28, 2019
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: May 25, 2020
Insolvency professional: Mr. Ritesh Prakash Adatiya
Interim Resolution
Professional: Mr. Ritesh Prakash Adatiya
E-904, Iscon Platinum
Bopal Cross Road
Bopal, Ahmedabad 380054
E-mail: riteshadatiya01@gmail.com
- and -
109, Arista Business Space
Sindhu Bhavan Road
Bodakdev 380059
Last date for
submission of claims: December 27, 2019
GIRINDRA HOSPITALITY: CRISIL Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Girindra Hospitality
Private Limited (GHPL) continues to be 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 6.5 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with GHPL for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of GHPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on GHPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of GHPL continues to be 'CRISIL D Issuer not
cooperating'.
Incorporated in 2013, GHPL is setting up a 50-room five-star hotel,
The Garuda Hotel, in Thrissur, Kerala. The hotel is currently in
the final stage of construction and is expected to be operational
from November 2015. The company is promoted by Mr. Girijavallaban V
K.
GK-AUTOPAL LIGHTING: CRISIL Keeps 'B' Rating in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of GK-Autopal Lighting
Solutions LLP (GKALS) continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Rupee Term Loan 1.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with GKALS for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of GKALS, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on GKALS is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of GKALS continues to be 'CRISIL B/Stable Issuer not
cooperating'.
GKALS was registered as a partnership firm with limited liability
(LLP) on December 29, 2014. The firm is currently engaged in
trading of compact fluorescent lamps (CFLs) and is in the process
of setting up a plant for manufacturing light-emitting diode (LED)
luminaries.
GUJARAT EXPORT: CRISIL Keeps D on INR15cr Credit in Not Cooperating
-------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Gujarat Export
Company (GEC) continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Packing Credit 15 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term
Bank Loan Facility 10 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with GEC for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of GEC, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on GEC is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of GEC continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Incorporated in 1998, as a proprietorship firm by Kansagra family
of Rajkot, GEC trades in soybean meal, rapeseed, groundnut
extraction meal, oil seeds, wheat, and other agricultural
products.
HBS CITY: CRISIL Keeps D Rating in INR11cr Loans in Not Cooperating
-------------------------------------------------------------------
CRISIL said the ratings on bank facilities of HBS City Private
Limited (HBSCPL) continues to be 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term .05 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 10.95 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with HBSCPL for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of HBSCPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on HBSCPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of HBSCPL continues to be 'CRISIL D Issuer not
cooperating'.
Furthermore, the company has not paid the fee for conducting rating
surveillance as agreed to in the rating agreement.
HOWRAH MILLS: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Howrah Mills Co Ltd
Howrah House 135
Foreshore Road
Howrah WB 711102
IN
Insolvency Commencement Date: December 6, 2019
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: June 3, 2020
(180 days from commencement)
Insolvency professional: Mr. Manish Jain
Interim Resolution
Professional: Mr. Manish Jain
Manish Mahavir Co.
2B, Grant Lane
Room No. 303, 3rd floor
Bajarang Kunj
Kolkata 700012
Mobile: 9830248684
8582806221
E-mail: manishmahavir@gmail.com
Last date for
submission of claims: December 20, 2019
INDIAN HOME: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Indian Home Variations & Distributions LLP
413, Atlanta Estate
G.M. Link Road
Goregaon (East)
Mumbai, MH 400063
IN
Insolvency Commencement Date: December 12, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: June 8, 2020
Insolvency professional: Kairav Anil Trivedi
Interim Resolution
Professional: Kairav Anil Trivedi
23 A 5th floor Jyoti Bldg
Barquatali Dargah Margh
Wadala (E), Mumbai 400037
E-mail: kairavtrivedi2002@yahoo.co.in
Last date for
submission of claims: December 25, 2019
JHUNJHUNWALA OIL: CRISIL Keeps 'D' Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Jhunjhunwala Oil
Mills Limited (JOML) continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 33 CRISIL D (ISSUER NOT
COOPERATING)
Letter of Credit 2 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 1.5 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
Standby Line 3.5 CRISIL D (ISSUER NOT
of Credit COOPERATING)
Term Loan 18.5 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with JOML for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of JOML, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on JOML is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of JOML continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Furthermore, the company has not paid the fee for conducting rating
surveillance as agreed to in the rating agreement.
JOML was established by Mr. Vishwanath Jhunjhunwala in 1973. The
company manufactures and refines edible oil, mainly rice bran oil,
through the solvent extraction process. JOML also has a cattle-feed
plant, which processes de-oiled cake, a by-product of solvent
extraction. The company has solvent extraction and cattle-feed
manufacturing facilities in Varanasi (Uttar Pradesh) and a rice
milling unit in Kudra (Bihar).
KIEON DEVELOPERS: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Kieon Developers Private Limited
Shop No. 2, Mathura of New Evershine
Co-operative Housing Society
Evershine Nagar, Malad West
Mumbai 400064
Insolvency Commencement Date: November 13, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: June 2, 2020
(180 days from commencement)
Insolvency professional: Mrs. Tanuja Jalan
Interim Resolution
Professional: Mrs. Tanuja Jalan
G-2/12B SundarSangam CHS Ltd
S V Road, Sunder Nagar
Malad (W), Mumbai 400064
E-mail: tanujajalan@yahoo.co.in
- and -
B-1706, AbrolVastu Park
Near Ryan International School
Evershine Nagar
New Link Road, Malad West
Mumbai 400064
E-mail: cirp.kieon@gmail.com
Last date for
submission of claims: December 19, 2019
KONNECTING INDIA: CRISIL Keeps D on INR12cr Debt in Not Cooperating
-------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Konnecting India (KI)
continues to be 'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with KI for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of KI, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on KI is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of KI continues to be 'CRISIL D Issuer not
cooperating'.
Furthermore, the company has not paid the fee for conducting rating
surveillance as agreed to in the rating agreement.
KI, based in Mumbai and established in 2008 by Mr. Anmol Samat and
his mother Ms. Sapna Samat, trades in technical textile fabrics.
KRITIKA ENTERPRISES: CRISIL Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Kritika Enterprises
(KRE) continues to be 'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with KRE for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of KRE, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on KRE is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of KRE continues to be 'CRISIL D Issuer not
cooperating'.
KRE, based in Jamshedpur (Jharkhand), trades in iron and steel
products such as iron rod ingots, pig iron, sponge iron, polled
iron, sulphur, hot-rolled coils, and cold-rolled coils. Mr.
Amarnath Singh, Mr. Uday Sankar Prasad, Mr. Suresh Kumar Sharma,
and Mrs. Rita Gupta are partners in the firm and manage its
operations.
LOHR INDIA: CRISIL Keeps D in INR13cr Loans in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Lohr India Automotive
Private Limited (LIAPL) continues to be 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9.5 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 3.5 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with LIAPL for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of LIAPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on LIAPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of LIAPL continues to be 'CRISIL D Issuer not
cooperating'.
Furthermore, the company has not paid the fee for conducting rating
surveillance as agreed to in the rating agreement.
The TSI group was established in 2006 and manufactures carriers
used in logistic services. It manufactures tippers and trailers
under TSIPL, car and truck carriers under LIAPL, and refrigerated
carriers under HIPL. Its promoters have industry experience of over
four decades.
MD USMAN: CRISIL Lowers Rating on INR3.35cr Cash Loan to B+
-----------------------------------------------------------
CRISIL has revised the ratings on bank facilities of MD Usman (MD)
to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating' from 'CRISIL
BB-/Stable/CRISIL A4+ Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.35 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Proposed Long Term .97 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Short Term Loan 10.68 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with MD for obtaining
information through letters and emails dated July 29, 2019 and
November 15, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MD, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MD is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of MD revised to 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating' from 'CRISIL BB-/Stable/CRISIL A4+ Issuer not
cooperating'.
MD, based in Viajayawada and set up in 1982, is promoted by Mr M D
Usman. It primarily undertakes toll collection on contract for
National Highways Authority of India ('CRISIL AAA/Stable'). It is
also in the transportation and petroleum products trading
businesses.
MISA SERVICES: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Misa Services Private Limited
Flat No. 601, 6th Floor
Vidyadhar Heights
Garud Ganpati Square
Narayan Peth Laxmi Road
Pune MH 411030
India
Insolvency Commencement Date: December 5, 2019
Court: National Company Law Tribunal, Pune Bench
Estimated date of closure of
insolvency resolution process: June 2, 2020
(180 days from commencement)
Insolvency professional: Ritesh Raghunath Mahajan
Interim Resolution
Professional: Ritesh Raghunath Mahajan
B-203 Devgiri, Ganeshmala
Sinhagad Road
Pune 411030
Maharashtra
E-mail: riteshmahajancs@gmail.com
misacirp@gmail.com
Last date for
submission of claims: December 23, 2019
MOHAN GEMS: CRISIL Keeps D in INR350 Loans in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Mohan Gems and Jewels
Private Limited (MGJPL) continues to be 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 100 CRISIL D (ISSUER NOT
COOPERATING)
Funded Interest
Term Loan 25 CRISIL D (ISSUER NOT
COOPERATING)
Working Capital
Term Loan 225 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with MGJPL for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MGJPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MGJPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of MGJPL continues to be 'CRISIL D Issuer not
cooperating'.
Furthermore, the company has not paid the fee for conducting rating
surveillance as agreed to in the rating agreement.
MGJPL, promoted by Mr. Murari Lal Soni, is a private limited
company incorporated in 2006. It manufactures gold jewellery
ranging from 18 to 24 carats. The company also has a retail
showroom in the Karol Bagh area of Delhi.
ONE WORLD: Insolvency Resolution Process Case Summary
-----------------------------------------------------
Debtor: One World Travel Solutions Limited
506, Manisha Building 75, 76
Nehru Place
New Delhi 110019
Insolvency Commencement Date: December 3, 2019
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: May 31, 2020
(180 days from commencement)
Insolvency professional: Jatin Madan
Interim Resolution
Professional: Jatin Madan
25, DDA LSC
Block M1, Vikaspuri
New Delhi 110018
E-mail: cajatinmadan@yahoo.com
oneworldirp@gmail.com
Last date for
submission of claims: December 18, 2019
P.K. LAXMI MILL: CRISIL Keeps B in INR12cr Loan in Not Cooperating
------------------------------------------------------------------
CRISIL said the ratings on bank facilities of P.K.Laxmi Mill India
Private Limited (PKPN) continues to be 'CRISIL B/Stable/CRISIL A4
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Foreign Discounting
Bill Purchase 7 CRISIL A4 (ISSUER NOT
COOPERATING)
Letter of Credit 5 CRISIL A4 (ISSUER NOT
COOPERATING)
Long Term Loan 4.63 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term
Bank Loan Facility 3.23 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with PKPN for obtaining
information through letters and emails dated May 31, 2019 and
November 15, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of PKPN, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on PKPN is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of PKPN continues to be 'CRISIL B/Stable/CRISIL A4
Issuer not cooperating'.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of PKLM and its associate concern PKPN
Spinning Mills Pvt Ltd (PKPN). This is because the two companies,
together referred to as the PKPN group, are in the same line of
business, have a common management, and have significant business
synergies, including fungible cash flows.
Set up in 1981, PKPN is the flagship entity of the PKPN group,
which is owned and managed by Mr. P K Jayagopal and his family
members. Based in Erode (Tamil Nadu), PKPN manufactures viscose
yarn, blended yarn, and speciality yarn such as lycra and acrylic
yarn. Based in Erode, PKLM manufactures viscose yarn, blended yarn,
and speciality yarn such as lycra and acrylic yarn.
PERFACT COLOR: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Perfact Color Digital Prints Private Limited
Shop No. 2, Prem Nagar Market
Tyagraj Nagar
New Delhi 110003
Insolvency Commencement Date: December 9, 2019
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: June 9, 2020
(180 days from commencement)
Insolvency professional: Shashi Bhushan Prasad
Interim Resolution
Professional: Shashi Bhushan Prasad
G-4/9, 1st Floor
Near Krishna Mandir
Malviya Nagar, New Delhi
National Capital Territory of Delhi
110017
E-mail: shashibpd@gmail.com
- and -
Suite No. 116, First Floor
New Delhi House
27, Barakhamba Road
New Delhi 110001
E-mail: shashi@stresscredit.com
admin@stresscredit.com
Last date for
submission of claims: December 26, 2019
QULUX TILES: CRISIL Lowers Rating on INR4.3cr Cash Loan to 'D'
--------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Qulux
Tiles LLP (QTL) to 'CRISIL D/CRISIL D' from 'CRISIL
BB-/Stable/CRISIL A4+'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.7 CRISIL D (Downgraded from
'CRISIL A4+')
Cash Credit 4.3 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
The downgrade reflects delay in servicing the debt obligation
because of weak liquidity.
Key Rating Drivers & Detailed Description
Weaknesses:
* Delay in debt servicing due to weak liquidity: The firm has been
irregular in servicing its debt obligation amid stretched liquidity
in the initial phase of operations.
* Below-average financial risk profile: Financial risk profile may
remain constrained by debt funding of recent capital expenditure
and working capital requirement, leading to high gearing.
* Susceptibility to volatile prices of fuel and key raw materials:
Profitability should remain susceptible to volatile prices of raw
material and fuel because of intense competition in the tiles
industry.
Strength:
* Extensive experience of the partners: Benefits from the
two-decade-long experience of the partners should continue to
support the business risk profile.
Liquidity Poor
Liquidity is poor, as indicated by instances of delay in repayment
of the loan.
Rating Sensitivity factors
Upward Factors:
* Track record of timely debt servicing for at least 90 days, with
utilisation of the working capital within the limit
* Significant improvement in operating performance, with adequate
cash accrual and enhancement in liquidity and debt protection
metrics.
Established in October 2017, QTL is setting up a unit for
manufacturing ceramic wall tiles. The manufacturing facility in
Morbi has installed capacity of 45,000 tonne per annum. The firm
has 16 partners, including Mr Anilbhai Laljibhai Varmora, Mr Hardik
Premjibhai Patel, and Mr Sandip Prabhulal Merja. Commercial
operations are estimated to have started in January 2019.
R M H HOSIERY: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: R M H Hosiery Private Limited
F-IX/630, Krishna Gali No. 2
Subhash Road, Gandhi Nagar
PS-Gandhi Nagar
Pin 110031
India
Insolvency Commencement Date: November 22, 2019
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: June 8, 2020
Insolvency professional: Pushpendra Surana
Interim Resolution
Professional: Pushpendra Surana
4831/24, Ansari Raod
Daryaganj
New Delhi 110002
E-mail: psurana@suranaca.com
irprmh@gmail.com
Last date for
submission of claims: December 25, 2019
RADHAKRISHNA CONTRACTORS: CRISIL Cuts Rating on INR5cr Loan to B+
-----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Radhakrishna Contractors (RC) to 'CRISIL B+/Stable/CRISIL A4' from
'CRISIL BB-/Stable/CRISIL A4+'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 15 CRISIL A4 (Downgraded from
'CRISIL A4+')
Cash Credit 5 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
The downgrade reflects deterioration in the liquidity profile of
RC. Working capital cycle has increased as reflected in gross
current assets (GCA) of 149 days as on March 21, 2019 from 51 days
in FY2018. This was mainly due to stretch in receivable cycle from
22 days in FY2018 to 110 days in FY2019 and also in payables from
44 days in FY2018 to 255 days in FY2019. CRISIL believes that
liquidity will continue to remain stretched over the medium term.
The ratings reflect the firm's modest scale of operations in the
highly fragmented infrastructure/civil industry and the large
working capital requirement. These weaknesses are partially offset
by the extensive experience of the proprietor in the civil
construction industry.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations in a highly fragmented industry: RC's
scale of operations is modest, as indicated by turnover of INR23.4
crore in fiscal 2019. Though revenue saw an improvement, it
remained modest relative to the size of the civil construction
industry. The firm's tender-based operations limit its pricing
flexibility in a competitive industry.
* Large working capital requirement: Gross current assets were 149
days as on March 31, 2019, driven by sizeable receivables and
creditors. Creditors were high at 255 days due to year-end billing
done by the firm and are expected to reduce in the current fiscal.
However, operations should remain working capital-intensive.
Strength
* Extensive experience of the proprietor: Benefits from the
two-decade-long experience of the proprietor and healthy
relationships with customers should continue to support the
business. Since its inception, the firm has executed several
projects for telecom, power, and civil works.
Liquidity Stretched
Cash accrual, expected at INR1-1.2 crore per fiscal is sufficient
against nil term debt obligations. However, bank limit utilisation
averaged 87% over the 12 months through October 2019.
Outlook: Stable
CRISIL believes RC will continue to benefit from the proprietor's
extensive experience.
Rating sensitivity factors
Upward factors
*More than 30% revenue growth, along with sustained profitability
*Improved financial risk profile
Downward factors
*Sharp decline in revenue by more than 20%
*Large, debt-funded capital expenditure weakening the financial
risk profile.
Established in 2013 as a proprietorship firm, RC provides
infrastructural services to telecom power companies. It also
undertakes civil work for roads and drainages. Mr Kiran M is the
proprietor.
RAINBOW DENIM: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Rainbow Denim Limited
Registered office:
Village Chaundheri
P O Dappar
Chandigarh-Ambala National Highway
Tehsil Rajpura
District Patiala
Punjab 140506
Corporate office:
51/52, Free Press House
Free Press Journal Marg
Nariman Point
Mumbai 400021
Insolvency Commencement Date: December 9, 2019
Court: National Company Law Tribunal, Zirakpur Bench
Estimated date of closure of
insolvency resolution process: June 8, 2020
Insolvency professional: Dharmendra Kumar Bhasin
Interim Resolution
Professional: Dharmendra Kumar Bhasin
191, Mamta Enclave
Behind Nimantran Banquet Hall
Dhakoli, Zirakpur
SAS Nagar, Punjab 140603
E-mail: cmadkbhasin@gmail.com
iprainbowdenim@gmail.com
Last date for
submission of claims: December 25, 2019
RAINI INDUSTRIES: CRISIL Cuts Rating on INR10cr Loans to 'C'
------------------------------------------------------------
CRISL has downgraded its rating on the bank loan facilities of
Raini Industries India Private Limited (RIIPL) to 'CRISIL C' from
'CRISIL BB-/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 2 CRISIL C (Downgraded from
'CRISIL BB-/Stable')
Long Term Loan 0.75 CRISIL C (Downgraded from
'CRISIL BB-/Stable')
Proposed Long Term
Bank Loan Facility 6.15 CRISIL C (Downgraded from
'CRISIL BB-/Stable')
Secured Overdraft
Facility 1.10 CRISIL C (Downgraded from
'CRISIL BB-/Stable')
The rating action takes into account delays in the repayment of
unrated loans from non-banking industrial development corporation
by the company.
The rating also reflects modest scale of operations and
vulnerability to cyclicality and intense completion in the steel
industry. However it benefits from the extensive experience of its
promoters.
Key Rating Drivers & Detailed Description
Weaknesses
*Modest scale of operations and Vulnerability to cyclicality and
intense completion: The tender-driven nature of business constrains
scalability in operations: revenue was modest at INR32.9 crore in
fiscal 2018. Exposure to risks pertaining to intense competition
and cyclicality in the domestic steel industry persist, despite
RIIPL's initiatives to grow exports.
Strength
* Extensive experience of the promoters in the steel industry: The
three-decade-long experience of promoters, and their healthy
relationships with customer and established clientele, will
continue to support the business risk profile, and ensure a regular
inflow of repeat orders. The company's status as an A1-class
contractor with public sector undertakings will further aid
performance.
Liquidity Poor
Liquidity is stretched as reflected in the high debtor days of
about 135 days as on March 31, 2018. Stretch in the receivables has
led to delays in the repayment of term loans.
Rating Sensitivity factors
Upward Factors
* Timely repayment of term loans
* Gross Current Asset (GCA) days of less than 90
Downward Factors
* Delay in servicing of bank loan
* Gross Current Asset (GCA) days of more than 180.
Incorporated in the year 2003 as Partnership entity and further
converted into Pvt Ltd; RIIPL is involved in manufacturing of
Plastic, metal or rubber products by injection Moulding or metal
cutting process.
RANVIK AUTOCOMPONENTS: CRISIL Cuts Rating on INR5.85cr Loan to D
----------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of Ranvik
Autocomponents Private Limited (RAPL) to 'CRISIL D/CRISIL D' from
'CRISIL BB-/Stable/CRISIL A4+'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL D (Downgraded from
'CRISIL A4+')
Cash Credit 5.85 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
Letter of Credit 6 CRISIL D (Downgraded from
'CRISIL A4+')
Term Loan 3.15 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
The downgrade reflects recent delays in repayment of bank debt by
the company on account of stretched liquidity.
The rating continues to reflect the modest scale of operations, and
average financial risk profile. These weaknesses are partially
offset by the promoters' extensive experience in the auto component
industry.
Analytical Approach
Unsecured loan of INR3.29 crore extended to the company by its
promoters has been treated as neither debt nor equity, as the loan
is expected to remain in the business over the medium term.
Key Rating Drivers & Detailed Description
Weakness:
* Modest scale of operations:
Revenue grew 30% over the three fiscals through 2019, but continues
to be modest at INR50.42 crore. Intense competition will, likely,
restrict scalability over the medium term as well.
* Average financial risk profile:
Financial risk profile is average as reflected in modest capital
structure due to modest networth of INR5.33 crore and gearing of
3.43 times as on March 2019. Further debt protection metrics is
average with interest coverage and net cash accrual to total debt
ratios were 1.89 times and 0.15 time, respectively.
Strengths:
* Promoter's extensive experience:
The key promoter, Mr. Vishwas Jagtap, has a long experience in the
engineering and auto component industry and should continue to
support business risk profile of RAPL.
Liquidity Poor
The poor liquidity has resulted in delays in debt servicing. The
bank limit is almost fully utilized
Rating Sensitivity Factor
Upward factor
* Track record of timely debt servicing for at least over 90 days.
Incorporated in 2008, RAPL is promoted by Mr Vishwas Manikrao
Jagtap and family. The company manufactures auto components such as
chassis and brake parts. The manufacturing unit is in Pune.
RELIABLE PAPER: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Reliable Paper (India) Ltd
Dadi Sheth Agiyary Lane
Off. Kalbadevi Road
Mumbai MH 400002
Insolvency Commencement Date: December 3, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: June 3, 2020
(180 days from commencement)
Insolvency professional: Mr. Girish Siriram Juneja
Interim Resolution
Professional: Mr. Girish Siriram Juneja
22 Dignity Apartments
Bon Bon Lane
7 Bunglows, Versova
Andheri (West)
Mumbai 400053
E-mail: junejagirish31@gmail.com
ip.relpap@gmail.com
Last date for
submission of claims: December 20, 2019
RNA CORP PRIVATE: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: RNA Corp Private Limited
RNA Corporate Park
Next to Collector's Office
Kalanagar, Bandra East
Mumbai 400051
Insolvency Commencement Date: November 26, 2019
Court: National Company Law Tribunal, Ghaziabad Bench
Estimated date of closure of
insolvency resolution process: May 24, 2020
(180 days from commencement)
Insolvency professional: Debashis Nanda
Interim Resolution
Professional: Debashis Nanda
Flat No. C S-14, C-floor
Ansal Plaza
Vaishali, Ghaziabad
Uttar Pradesh 201010
E-mail: dnanda.cma@gmail.com
- and -
Pranjal International Resolutions Pvt Ltd
101/B, Om Sai Niwas
Subhash Road, Vile Parle East
Mumbai 400057
E-mail: ip.rnacorp@gmail.com
Classes of creditors: Home buyers
Insolvency
Professionals
Representative of
Creditors in a class: Vinodkumar Pukhraj Ambavat
Charu Sandeep Desai
Rajendra Ramnarain Agrawal
Last date for
submission of claims: December 20, 2019
SB LIFESPACES: CRISIL Moves B+ From Not Cooperating Category
------------------------------------------------------------
Due to inadequate information, CRISIL, in line with SEBI
guidelines, had migrated the rating of SB Lifespaces Private Ltd
(SBLPL) to CRISIL B+/Stable Issuer not cooperating. However, the
management has subsequently started sharing requisite information,
necessary for carrying out comprehensive review of the rating.
Consequently, CRISIL is migrating the rating on bank facilities of
SBLPL from 'CRISIL B+/Stable Issuer not cooperating' to 'CRISIL
B+/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 30 CRISIL B+/Stable (Migrated
from 'CRISIL B+/Stable
ISSUER NOT COOPERATING')
The rating continues to reflect SBLPL's susceptibility to the risks
inherent in the real estate industry. This weakness is partially
offset by the experience of the promoters.
Key Rating Drivers & Detailed Description
Weakness:
* Susceptibility to risks inherent in industry
SBLPL is exposed to risks pertaining to the real estate sector,
such as long gestation period of projects. Any time or cost overrun
or delay in obtaining necessary approvals could affect the
realisation and profitability of projects.
The dynamics of the residential and commercial segments are
different. The residential segment demand is driven by demographic
trends, level of interest rates and employment levels, whereas the
commercial segment demand is led by the level of economic activity
in the region; the business is also driven by the level of economic
activity and the outlook for the real estate sector. Adverse
changes in the overall economic environment are likely to impact
the real estate market.
Strength:
* Experience of promoters
Mr Kirit Wadhwana has over a decade of experience in the real
estate industry, through a partnership firm, Wadhwana Housing
Development and Infrastructure Co (Ms Ramila Wadhwana and Mr
Sandeep Wadhwana are the other partners). Benefits derived from the
promoters' experience and a healthy track record in real estate
development help attract the initial demand for ongoing projects.
Liquidity Stretched
Liquidity is constrained by low customer advances till September
2019 and moderate funding requirement as 50% pending construction
cost is yet to be incurred. Any delay in sale of flats or
realization of customer advances due to a sharp slowdown in the
real estate sector can adversely affect liquidity.
Outlook: Stable
CRISIL believes SBLPL will continue to benefit over the medium term
from the experience of the promoters.
Rating Sensitivity factors
Upward factor:
* Higher-than-expected booking (more than 30% in a year) along with
significant inflow of advances
* Improvement in the capital structure
Downward factor:
* Lower-than-expected bookings (less than 25% a year) and
consequent delay in project implementation
* Deterioration in the financial risk profile.
SBLPL, incorporated in August 2011 by Mumbai-based Mr Kirit
Wadhwana and family, is developing a residential-cum-commercial
real estate project, Sandeep Heights, at Nallasopara in Thane
(Maharashtra).
SHELTREX DEVELOPERS: Insolvency Resolution Process Case Summary
---------------------------------------------------------------
Debtor: Sheltrex Developers Private Limited
Nammavedu Project, Kaliyapuram Cross
Routigoundanoor Road
Ettimadai Pirivu, Coimbatore
Tamil Nadu 641105
Insolvency Commencement Date: December 10, 2019
Court: National Company Law Tribunal, Chennai Bench
Estimated date of closure of
insolvency resolution process: June 7, 2020
(180 days from commencement)
Insolvency professional: N. Kumar
Interim Resolution
Professional: N. Kumar
Old No. 8, New No. 3, Third Street
Race View Colony Guindy
Chennai 600032
E-mail: naraykumar71@rediffmail.com
Mobile: 9952418350
Classes of creditors: Applicable
Insolvency
Professionals
Representative of
Creditors in a class: Mr S. Diraviam
Ms J. Karthiga
Mr Yogesh Narayanan Sundaram
Last date for
submission of claims: December 24, 2019
SHREE ASHTVINAYAK: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Shree Ashtvinayak Gems and Stones Private Limited
Balaji Plaza, 2nd Floor
1157/1139 Kucha Mahajani
Chandni Chowk, New Delhi 110006
Insolvency Commencement Date: December 10, 2019
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: June 7, 2020
Insolvency professional: Ashok Kumar Juneja
Interim Resolution
Professional: Ashok Kumar Juneja
1203, Vijaya Building
17, Barakhamba Road
Connaught Place
New Delhi 110001
E-mail: ashokjuneja@gmail.com
ip.ashtvinayak@gmail.com
Last date for
submission of claims: December 26, 2019
SHREE REFRIGERATIONS: CRISIL Cuts Rating on INR7.5cr Loan to D
--------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of Shree
Refrigerations Private Limited (SRPL) to 'CRISIL D/CRISIL D' from
'CRISIL B+/Stable/CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2 CRISIL D (Downgraded from
'CRISIL A4')
Bill Discounting 2 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Cash Credit 7.5 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Letter of Credit 2 CRISIL D (Downgraded from
'CRISIL A4')
Long Term Loan 1.15 CRISIL D (Downgraded from
'CRISIL B+/Stable')
The downgrade reflects the recent delays in servicing debt
obligations because of weak liquidity. The delays in receiving
payment from counterparty led to delay in repayment of project
specific loans.
The ratings reflect SRPL's weak liquidity leading to delay in debt
servicing, large working capital requirement, and below-average
financial risk profile and liquidity. These weaknesses are
partially offset by the extensive experience of the promoter.
Key Rating Drivers & Detailed Description
* Delay in debt servicing due to weak liquidity: The company has
delayed in servicing its project specific loans because of delays
in receipt of payments from counterparty. The delays were till
November 2019.
Weaknesses:
* Working capital-intensive operations: Gross current assets were
186 days as on March 31, 2018, driven by inventory and debtors of
77 and 71 days, respectively. Working capital is partially
supported by creditors of 68 days and high bank limit utilization.
* Below-average financial risk profile: Networth was low and
gearing high at INR5.54 crore and 1.86 times, respectively, as on
March 31, 2018. Debt protection metrics were weak with interest
coverage and net cash accrual to total debt ratios of 1.8 times and
0.13 time, respectively, in fiscal 2018.
Strengths:
* Extensive experience of the promoter: Benefits derived from the
promoter's experience of over two decades and healthy relations
with customers and suppliers should continue to support the
business.
Liquidity Poor
Liquidity is poor as indicated by instances of delays in the
repayment of project loans on account of stretch in receivables.
Rating Sensitivity factors
Upward factor:
* Track record of timely debt servicing for at least 90 days
* Significant improvement in operating performance and improvement
in financial risk profile and liquidity
SRPL, incorporated in 1990, manufactures condensing units, chilling
units, spray dampening systems, and appliance-testing machines. Its
manufacturing facility is in Karad, Maharashtra. Mr Ravalnath
Shende is the promoter.
SRI BALAJI: Insolvency Resolution Process Case Summary
------------------------------------------------------
Debtor: Sri Balaji Metals and Minerals Private Limited
23 A.N.S. Road
Room No. 6, 3rd Floor
Kolkata West Bengal 700001
India
Insolvency Commencement Date: December 3, 2019
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: May 30, 2020
Insolvency professional: Jitendra Lohia
Interim Resolution
Professional: Jitendra Lohia
Klass Insolvency Resolution
Professionals Pvt. Ltd.
Todi Chambers
2 Lal Bazar Street
2nd Floor, Room No. 204 & 205
Kolkata 700001
West Bengal
E-mail: jitulohia@knjainco.com
ip.jitulohia@gmail.com
Last date for
submission of claims: December 21, 2019
SUNGRACIA TILES: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Sungracia Tiles Private Limited
S.No. 145/P, Opp. Amardham Temple
Tal. Wankaner Matel
GJ 363622
IN
Insolvency Commencement Date: December 4, 2019
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: May 31, 2020
Insolvency professional: Sunit Jagdishchandra Shah
Interim Resolution
Professional: Sunit Jagdishchandra Shah
303, 3rd Floor, Abhijeet-1
Opp. Bhuj Mercantile Bank
Mithakhali Six Roads
Navrangpura, Ahmedabad 6
E-mail: sunit78@gmail.com
cirp.sgtpl@gmail.com
Last date for
submission of claims: December 20, 2019
SURYA PANEL: CRISIL Lowers Rating on INR15cr Term Loan to D
-----------------------------------------------------------
CRISIL has downgraded the rating of Surya Panel Private Limited
(SPPL) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 15 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with SPPL for obtaining
information through letters and emails dated November 30, 2018,
February 14, 2019 and February 20, 2019 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SPPL. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SPPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the delay in the repayments in the September 2019 quarter,
CRISIL has downgraded the rating to 'CRISIL D Issuer Not
Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating'.
Incorporated in December 2014 and promoted by Mr Sudharshan
Hadihalli Byregowda and Mr Rushil Krupesh Thakkar, SPPL is setting
up a manufacturing facility for high-density fibre boards and
medium-density fibre boards.
SWASTIK AQUA: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Swastik Aqua Limited
Plot F-64/37, Ground Floor
L/P Village-Katwaria Sarai
New Delhi 110016
Principal office:
Plot No. 24, 25, 26, 27 and 45
Tatisilwai Industrial Area Phase-II
Village Chatra, Taluka-Angara
District Ranchi, Jharkhand
Insolvency Commencement Date: December 9, 2019
Court: National Company Law Tribunal, New Delhi, Bench-V
Estimated date of closure of
insolvency resolution process: June 5, 2020
Insolvency professional: Pooja Bahry
Interim Resolution
Professional: Pooja Bahry
59/27, Prabhat Road
New Rohtak Road
New Delhi 110005
E-mail: pujabahry@yahoo.com
rp.swastikaqua@gmail.com
Last date for
submission of claims: December 23, 2019
URAL INDIA: Insolvency Resolution Process Case Summary
------------------------------------------------------
Debtor: Ural India Limited
1, Auckland Place
Kolkata 700017
West Bengal
Insolvency Commencement Date: October 15, 2019
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: April 12, 2020
(180 days from commencement)
Insolvency professional: Saurabh Basu
Interim Resolution
Professional: Saurabh Basu
Alapan Appartment
3rd Floor, 10/62
Raja Rammohan Roy Road
Kolkata 700008
E-mail: pcs.saurabhbasu@gmail.com
irpural1@gmail.com
Last date for
submission of claims: December 20, 2019
VISA PHARMACEUTICALS: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: Visa Pharmaceuticals Private Limited
71, Canning Street
4th Floor A -402/8
Bagree Market Kolkata
WB 700001
India
Insolvency Commencement Date: December 3, 2019
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: June 1, 2020
(180 days from commencement)
Insolvency professional: Kannan Tiruvengadam
Interim Resolution
Professional: Kannan Tiruvengadam
Netaji Subhas Villa Flat No. 3C
3rd Floor, 18 Karunamoyee Ghat Road
Near Dharapara Tollygunge
Kolkata, West Bengal 700082
E-mail: calkannan@gmail.com
cirp.vppl@gmail.com
Last date for
submission of claims: December 17, 2019
===============
M A L A Y S I A
===============
BRAHIM'S HOLDINGS: Says PwC Resigned After Mutual Agreement
-----------------------------------------------------------
Arjuna Chandran Shankar at The Edge Financial Daily reports that
Brahim's Holdings Bhd, whose shares dived after it announced
PricewaterhouseCoopers PLT (PwC) had voluntarily resigned as its
external auditor with immediate effect, said on Dec. 16 PwC's
departure is partly due to Brahim's board's view that a change of
auditors would be good for corporate governance.
"PwC has been Brahim's SATS Food Services Sdn Bhd's (BSFS) auditor
for more than 15 years. BSFS contributes more than 90% of the
group's revenue. As part of an ongoing good corporate governance
initiative, Brahim's and BSFS' boards viewed that it would be
timely to effect a change of auditors.
"Changing auditors also enables the company to benefit from fresh
perspectives and views of another professional audit firm, thus
enhancing the value of the audit of the group. On Nov 21, 2019,
BSFS, at its board of directors meeting, agreed to change auditors,
subject to relevant formalities," Brahim's said in a filing with
Bursa Malaysia, the Edge relays.
According to the Edge, the company said PwC's resignation, which it
announced on Dec. 12, was after a mutual agreement between the
parties based on the aforementioned, and that the board is actively
pursuing the formalisation and implementation of a regularisation
plan, aiming to exit its Practice Note 17 (PN17) status.
"The regularisation plan requires appointing reporting accountants
to carry out in-depth financial review and reports. The board
believes it would be expedient to have [it be] the same party as
the company and the group's auditor," Brahim's said.
It concluded the statement by assuring shareholders that changing
auditors - Messrs Baker Tilly Monteiro Heng PLT replaces PwC as
Brahim's new auditor for the current financial year ending Dec 31,
2019 (FY19) - is in the ordinary course of business and in the
company and the group's best interest, the Edge relates.
Brahim's statement was issued in response to The Edge Malaysia's
weekly article entitled "Tell Investors Why" published in the Dec.
16 to Dec. 22 issue, which noted that investors appeared spooked by
PwC's sudden resignation, given a steep fall in Brahim's shares
following the announcement.
Brahim's shares closed at 21 sen apiece, down two sen from Dec. 13,
with a market capitalisation of RM50.8 million, the report
discloses.
The group has lost 24% or RM17.7 million in market capitalisation
since it revealed PwC's resignation last Thursday. At the time, it
offered no reasons for the resignation, which came seven months
after PwC's reappointment as its auditor in the annual general
meeting on May 4 for FY19, the report notes.
About Brahim's Holdings
Brahim's Holdings Berhad is a holding company. The Company's core
business is airport-centric, focusing on the provision of in-flight
catering and restaurant operations. Brahim through its subsidiary
holds a concession with Malaysia Airlines System Berhad (MAS) for
the provision of in-flight catering and related services.
Brahim's Holdings Berhad slipped into PN17 (Practice Note 17)
status in February 2019 as it has triggered the Prescribed Criteria
under Paragraph 2.1 (a) of PN17. Based on the unaudited interim
financial results of BHB for the fourth quarter ended December 31,
2018, the shareholders' equity of BHB on a consolidated basis of
less than MYR40.0 million represented 25% or less of its issued
capital.
=====================
N E W Z E A L A N D
=====================
TAMARIND TARANAKI: BorrelliWalsh Appointed as Liquidators
---------------------------------------------------------
Mike Watson at Stuff.co.nz reports that those due money from
collapsed oil and gas explorer Tamarind Taranaki aren't likely to
see any of the NZD360 million the company owes, the boss of the New
Plymouth chamber of commerce said.
PwC were appointed receivers of the Malaysian-owned company on Dec.
19, shortly before a meeting with creditors was held in New
Plymouth, PwC partner John Fisk said, Stuff relates.
At the meeting it was decided administrators BorrelliWalsh be
appointed as liquidators to investigate the cause of the company's
failure, according to the report.
Stuff relates that Mr. Fisk said PwC will take control of the
company's assets and determine the best way to realise them for the
benefit of the creditors.
According to the report, Taranaki Chamber of Commerce chief
executive Arun Chaudhari said he understood 10-15 per cent of the
company's NZD360 million debt was owed to local suppliers.
"It's not great for local suppliers and it is a big impact for them
to absorb," the report quotes Mr. Chaudhari as saying.
"Realistically creditors are not looking at recovering any of their
money."
Stuff adds that New Plymouth MP and opposition energy and resources
spokesman Jonathan Young said Taranaki-based companies that
supported the Tamarind programme would be badly affected by the
company's collapse.
"This (liquidation) is a careful, deliberate and somewhat complex
financial process that now must work its way through its various
stages and it would be inappropriate to pre-empt its outcomes,"
Stuff quotes Mr. Young as saying.
Stuff relates that Mr. Young said he hoped the cost of
decommissioning the company's offshore Tui wells would be completed
without more cost falling to taxpayers.
"Petroleum companies have their financial capability vetted by law
in New Zealand, but Tamarind acquired the Tui field through a
loop-hole, which was discovered by the previous National
government. They and the current Labour government moved rapidly to
close that through a legislative process in Parliament," he said.
Taranaki Tamarind, which owned the Tui field, suspended drilling
operations in the South Taranaki Basin in September.
The company has been under voluntary administration since
November 13 when it was unable to pay suppliers, and company
directors had signalled it was "insolvent, or may become
insolvent," Stuff discloses.
Singapore-based administrators BorrelliWalsh were appointed and the
company was given a 25-day moratorium to gauge whether it could
remain operational, according to Stuff.
Stuff says the company, which specialised in buying oil fields late
in production life, had struggled to meet financial commitments
after it suspended an estimated NZD300 million three-well drilling
programme in the Tui field after the first well was declared dry.
The COSL-owned Prospector semi-submersible rig, which had been
contracted to late 2019, was moved off site after the dry well was
plugged and abandoned.
More problems struck the company when a leak was discovered between
the Pateke oil-producing well the company owned in the Tui field
and the offshore floating oil production facility, or FPSO,
Umuroa.
Tamarind Taranaki had earlier not renewed its contract with BTW
Offshore, which owned the Umuroa, after Dec. 31 2019.
=================
S R I L A N K A
=================
SRI LANKA: Fitch Affirms B IDR & Alters Outlook to Negative
-----------------------------------------------------------
Fitch Ratings revised the Outlook on Sri Lanka's Long-Term
Foreign-Currency Issuer Default Rating to Negative from Stable and
has affirmed the IDR at 'B'.
KEY RATING DRIVERS
Revision of the Outlook to Negative from Stable reflects rising
risks to debt sustainability from a significant shift in fiscal
policy and the potential for roll-back of fiscal and economic
reforms in the aftermath of November's Presidential elections.
Fitch believes the departure from the previous revenue-based fiscal
consolidation path has created policy uncertainty and increased
external financing risk for the sovereign, particularly given the
large external debt repayments due in 2020 and beyond.
Newly appointed President Gotabaya Rajapaksa announced sweeping tax
cuts soon after taking office, including a revision of the
value-added tax (VAT) rate to 8% from 15% (the rate applicable to
financial services has been kept at 15%), an increase in the liable
limit for VAT registration to LKR300 million, scrapping of the
nation building tax, lowering the income tax rate for the highest
income bracket to 18%, from 24%, and changing the withholding tax
regime, among others.
Fitch's preliminary estimates show that the VAT rate change and the
scrapping of the nation building tax could alone lower revenue by
as much as 2% of GDP in the absence of off-setting measures; VAT
accounted for 24% of government revenues in 2018. The authorities
have identified offsetting revenue and expenditure measures that
they believe would make these tax cuts revenue neutral. These
include a hike in the excise duty on liquor and cigarettes, which
accounts for about 10% of VAT revenue, and an increase in the Ports
and Airports Development Levy to 10.0%, from 7.5%. In addition,
financial services, which account for 15% of VAT, will not be
affected by the rate cut. The authorities project the expenditure
adjustment to come mainly from a cutback in public investment.
Fitch expects these offsetting measures, such as adjustments to
excise taxes and spending cuts on non-priority public investment
and recurrent expenditure, to mitigate part of the revenue loss
from the tax announcement. However, the agency nevertheless expects
the deficit to widen by about 1.5% of GDP relative to its previous
forecasts.
Fitch has revised its budget deficit projection to 6.5% of GDP for
2020 and 6.2% for 2021, which are higher than the authorities'
estimates, from 5.0% previously in both years. Following the tax
cuts, Fitch projects that gross general government debt, currently
at about 85% of GDP, will be on an upward trajectory over the
medium-term in the absence of off-setting measures.
Fitch believes the authorities still aim to reduce the deficit to
below 4.0% of GDP over the medium-term in line with their previous
consolidation plans. However, the announced tax measures create
uncertainty about the feasibility of these plans. The outlook for
the completion of the seventh and final review under the Extended
Fund Facility arrangement with the IMF now seems uncertain and
discussions of a new programme after the parliamentary elections
expected in April 2020 could be complicated by the tax cuts.
Fitch acknowledges that the tax cut announcement has come during
the early period of the new administration and that further policy
announcements will follow, which could mitigate some fiscal issues.
However, Fitch believes the initial evidence of a roll-back of the
revenue-driven fiscal consolidation path is negative for the
sovereign's creditworthiness.
The 'B' IDR also reflects the following key rating drivers:
Fitch expects growth to pick up to 3.5% in 2020 and 3.7% in 2021,
from 2.8% in 2019. These forecasts reflect its expectation of a
boost to growth in the short-term from the tax cuts, higher
agricultural output and an ongoing recovery in tourism following
last April's terrorist bombings. Remittances are also likely to
remain supportive of domestic demand.
Sri Lanka's external balance sheet is weak, with external debt
obligations totalling approximately USD19.0 billion coming due
between 2020-2023, compared with foreign-exchange reserves of
around USD7.5 billion as of end-November 2019. Fitch expects the
current account deficit to widen to about 3.0% of GDP in 2020 and
2021, from an estimated 2.2% in 2019, as domestic demand
strengthens.
Large interest payments as a share of revenue, at about 46.0%
(current peer median 10.2%), a low revenue ratio and a very high
public debt/revenue ratio of 643% continue to highlight the weak
structure of Sri Lanka's public finances. In addition,
foreign-currency debt is nearly half of total government debt and
leaves public finances vulnerable to renewed currency
depreciation.
Sri Lanka's basic human-development indicators, including education
standards, are high compared with the 'B' median, as it ranks in
the 60th percentile of the UN's Human Development Index compared
with the 35th percentile of the current 'B' median. Furthermore,
the country's per capita income of USD4,023 (Fitch estimate as of
end-2019) is somewhat higher than the current 'B' median of
USD3,311.
SOVEREIGN RATING MODEL (SRM) AND QUALITATIVE OVERLAY (QO)
Fitch's proprietary SRM assigns Sri Lanka a score equivalent to a
rating of 'B+' on the Long-Term Foreign-Currency IDR scale.
Fitch's sovereign rating committee adjusted the output from the SRM
to arrive at the final Long-Term Foreign-Currency IDR by applying
its QO, relative to rated peers, as follows:
- External Finances: -1 notch to reflect high sovereign external
refinancing needs against relatively low foreign-currency reserves
that leave the external position vulnerable to any adverse shifts
in investor sentiment.
Fitch's SRM is the agency's proprietary multiple regression rating
model that employs 18 variables based on three-year centred
averages, including one year of forecasts, to produce a score
equivalent to a Long-Term Foreign-Currency IDR. Fitch's QO is a
forward-looking qualitative framework designed to allow for
adjustment to the SRM output to assign the final rating, reflecting
factors within its criteria that are not fully quantifiable and/or
not fully reflected in the SRM.
RATING SENSITIVITIES
The main factors that individually, or collectively, could trigger
a downgrade are:
- Failure to place the gross general government debt/GDP ratio on
a downward path due to wider budget deficits or the crystallisation
on the sovereign balance sheet of contingent liabilities that are
linked to state-owned entities or government-guaranteed debt.
- Increase in external sovereign funding stresses that threaten
the government's ability to meet upcoming debt maturities,
particularly in the event of a loss of confidence by international
investors.
- A further deterioration in policy coherence and credibility,
leading to lower GDP growth and/or macroeconomic instability.
The main factors that, individually or collectively, could lead to
a revision of the Outlook to Stable:
- Stronger public finances, underpinned by a credible medium-term
fiscal strategy that places gross general government debt/GDP on a
downward path, accompanied by higher government revenue.
- Improvement in external finances, supported by lower net
external debt or a reduction in refinancing risk; for example, from
a lengthening of debt maturities or increased foreign-exchange
reserves.
- Improved macroeconomic policy coherence and credibility,
evidenced by more predictable policy-making and a track record of
meeting previously announced economic and financial targets.
KEY ASSUMPTIONS
- Global economic outcomes are consistent with Fitch's latest
Global Economic Outlook report.
ESG CONSIDERATIONS
- Sri Lanka has an ESG relevance score of '5' for political
stability and rights, as World Bank governance indicators have the
highest weight in Fitch's SRM and are therefore highly relevant to
the rating and a key rating driver with a high weight.
- Sri Lanka has an ESG relevance score of '5' for rule of law,
institutional and regulatory quality and control of corruption, as
World Bank governance indicators have the highest weight in Fitch's
SRM and are therefore highly relevant to the rating and a key
rating driver with a high weight.
- Sri Lanka has an ESG relevance score of '4' for human rights
and political freedom, as World Bank governance indicators have the
highest weight in Fitch's SRM and are relevant to the rating and a
rating driver.
- Sri Lanka has an ESG relevance score of '4' for creditors'
rights, as willingness to service and repay debt is relevant to the
rating and a rating driver, as for all sovereigns.
=============
V I E T N A M
=============
VIETNAM: Moody's Confirms Ba3 Unsec. Ratings, Alters Outlook to Neg
-------------------------------------------------------------------
Moody's Investors Service confirmed the Government of Vietnam's Ba3
local and foreign currency issuer and senior unsecured ratings, and
changed the outlook to negative, concluding the review for
downgrade that was initiated on October 9, 2019.
The confirmation of the rating reflects Moody's assessment that
enhanced attention by the administration on forthcoming payments of
all the government's debt obligations, direct and indirect, reduces
the risk of renewed payment delays.
The Ba3 rating is underpinned by strong growth potential and
economic diversification, supporting the economy's capacity to
absorb shocks, including a prolonged slowdown in global trade. The
rating also reflects Moody's expectation that the government's
direct debt burden will decline gradually, from moderately high
levels, and debt affordability will improve.
Moreover, while the rapid build-up of a large and diversified
manufacturing sector denotes policy effectiveness, Moody's assesses
the country's institutions and governance to be relatively weak,
including administrative deficiencies revealed in the delayed debt
payments. And although the financial health of Vietnamese banks has
improved over recent years, the banking system remains the chief
driver of overall event risks for the sovereign.
The negative outlook reflects some ongoing risk of payment delays
on some of the government's indirect debt obligations, in the
absence of more tangible and significant measures to improve the
coordination and transparency around debt management within the
administration.
Vietnam's long-term foreign currency (FC) bond ceiling at Ba1, its
long-term FC deposit ceiling at B1 and its local currency bond and
deposit ceilings at Baa3 are unchanged. The short-term FC bond and
deposit ceilings remain unchanged at Not Prime.
RATINGS RATIONALE
RATIONALE FOR CONFIRMATION AT Ba3
ENHANCED SCRUTINY REDUCES THE RISK OF FUTURE DEBT PAYMENT DELAYS
During the rating review, Moody's has assessed the practices and
systems the government has instituted or is instituting, to ensure
reliable, timely, and smooth payment of all obligations, following
some payment delays on government-guaranteed debt obligations over
the past year.
Moody's has concluded that debt payment management practices have
been strengthened within the administration, with greater scrutiny
to the range of debt payments coming due. The government is able to
monitor a full list of direct and indirect debt obligations. As
previously assessed, the government has the financial capacity to
meet these obligations. With a coordinated focus on ensuring that
the payments are planned for and processed promptly, the risk of
renewed delays has diminished.
The payments that were delayed earlier this year have now been made
in full.
CREDIT FUNDAMENTALS UNDERPIN Ba3 RATING
Meanwhile, Vietnam's fundamentals underpin the Ba3 rating. Strong
growth potential and economic diversification bolster the economy's
resilience to shocks including a prolonged slowdown in global
trade. In addition, rising competitiveness and a further transition
to higher value-added industrial activity will be supported by the
diversion of trade and investment to Vietnam from other parts of
the region amid trade tensions between the United States (Aaa
stable) and China (A1 stable) and partly offset the impact of the
global slowdown.
This rapid build-up of a large and diversified manufacturing sector
is an indication of policy effectiveness reflected in Moody's
assessment of the sovereign's institutions and governance strength,
combined with evidence of administrative deficiencies revealed in
the delayed debt payments.
Moody's continues to assess that the delayed payments reflect
administrative deficiencies rather than fiscal weakness. Instead,
Moody's expects the government's direct debt burden to decline
gradually, to around 48% of GDP by 2020, from nearly 53% in 2016.
Combined with lower domestic interest rates reflecting a
lengthening track record of macroeconomic stability, Moody's also
expects an improvement in debt affordability. In addition, the
rising share of local-currency market financing will decrease the
government's vulnerability to exchange rate risk.
Banking sector risk remains the driver of Vietnam's susceptibility
to event risk, although the financial health of Vietnamese banks
has improved in recent years, especially with regards to asset
quality. At the same time, a stable current account surplus and
strong foreign direct investment inflows have fortified Vietnam's
foreign exchange reserves and contributed to the trend decline in
external vulnerability risk since the beginning of the decade.
RATIONALE FOR THE NEGATIVE OUTLOOK
Notwithstanding the government's heightened focus on ensuring
timely repayment, the negative outlook signals the persistence of
risks of recurring payment delays. The extent of the government's
guaranteed obligations and the resources available to meet these
obligations have not been made public, hindering more effective
monitoring. At the same time, potential improvements in public
financial management in collaboration with development partners
could enhance the quality and timeliness of fiscal reporting,
including more information on extra-budgetary funds.
ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
Environmental risks are material to Vietnam's sovereign rating. In
particular, Vietnam is susceptible to rising sea level and its
manifestations in more frequent and severe floods, which will over
time leave a significant proportion of its land and population
exposed to submersion.
The reliance of a significant proportion of the population on
agriculture also exacerbates the potential economic and fiscal
impact of weather-related shocks, as well as spillovers from the
country's large and fast-growing manufacturing sector, such as
pollution.
Social considerations are inherent to the sovereign's overall
economic strength. On the back of the Doi Moi reforms in the late
1980s, Vietnam has seen rapid economic growth, and a sharp fall in
the poverty ratio. However, an expected decline in its working-age
population over the medium-term presents new economic and fiscal
challenges to Vietnam's credit profile.
Governance considerations are material for Vietnam. As mentioned,
this consideration is reflected in Moody's assessment of
institutions and governance strength, which reflects weak
coordination and planning among various arms of the government -
while still taking into account a track record of effective
economic policy that has led the economy to maintain strong growth
and rise up the value chain. Moody's view of Vietnam's institutions
and governance strength also takes into consideration the very
gradual pace of state-owned enterprise reforms, and outstanding
fragilities in the banking sector.
WHAT COULD LEAD TO A DOWNGRADE
Moody's would likely downgrade Vietnam's rating if delays in
meeting its indirect debt payment obligations recur, pointing to
more persistent administrative deficiencies than Moody's currently
assumes, consistent with weaker institutions and governance.
WHAT COULD LEAD TO A CHANGE IN THE OUTLOOK TO STABLE
Moody's would likely change the outlook on Vietnam's Ba3 rating to
stable if there is more tangible evidence that the government will
meet its direct and indirect debt obligations in a smooth and
timely manner for the foreseeable future.
Over time, prospects of a continued decline in the debt burden
while maintaining strong growth and competitiveness would put
upward pressure on the rating.
GDP per capita (PPP basis, US$): 7,513 (2018 Actual) (also known as
Per Capita Income)
Real GDP growth (% change): 7.1% (2018 Actual) (also known as GDP
Growth)
Inflation Rate (CPI, % change Dec/Dec): 3.5% (2018 Actual)
Gen. Gov. Financial Balance/GDP: -3.5 (2018 Estimated) (also known
as Fiscal Balance)
Current Account Balance/GDP: 2.4% (2018 Actual) (also known as
External Balance)
External debt/GDP: 45.7% (2018 Actual)
Level of economic development: ba1 level of economic resilience
Default history: No default events (on bonds or loans) have been
recorded since 1983.
On December 16, 2019, a rating committee was called to discuss the
rating of the Vietnam, Government of. The main points raised during
the discussion were: The issuer's economic fundamentals, including
its economic strength, have not materially changed. The issuer's
institutions and governance strength, have not materially changed.
The issuer's fiscal or financial strength, including its debt
profile, has materially increased. The issuer's susceptibility to
event risks has not materially changed.
The principal methodology used in these ratings was Sovereign
Ratings Methodology published in November 2019.
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S U B S C R I P T I O N I N F O R M A T I O N
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
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Copyright 2019. All rights reserved. ISSN: 1520-9482.
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