/raid1/www/Hosts/bankrupt/TCRAP_Public/201225.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 25, 2020, Vol. 23, No. 258
Headlines
A U S T R A L I A
COMMAND GROUP: First Creditors' Meeting Set for Jan. 5
ILLAWONG PROPERTIES: Second Creditors' Meeting Set for Jan. 6
WATJICO NEW: First Creditors' Meeting Set for Jan. 7
I N D I A
AKURTH CHEMICALS: Insolvency Resolution Process Case Summary
BALAJI OIL: Ind-Ra Cuts LT Issuer Rating to 'BB-', Outlook Stable
FIZA DEVELOPERS: Ind-Ra Assigns 'B+' Issuer Rating, Outlook Stable
J. P. INDUSTRIES: CRISIL Keeps D on INR6cr Credit in NonCooperating
JOSAN FOODS: CRISIL Keeps D Debt Ratings in Not Cooperating
KAKUMANU SEEDS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
KALP DIAMONDS: CRISIL Keeps D Debt Ratings in Not Cooperating
KARTHIK TRAVELS: CRISIL Keeps B- Debt Rating in Not Cooperating
KSA POWERINFRA: Ind-Ra Moves 'D' Issuer Rating to Non-Cooperating
KUTTANADU VIKASANA: CRISIL Keeps D Debt Rating in Not Cooperating
LAJJYA STEELS: CRISIL Keeps D Debt Ratings in Not Cooperating
LAXMI MEGHAN: CRISIL Keeps B+ Debt Rating in Not Cooperating
MALWA AUTOMOBILES: Ind-Ra Keeps 'BB-' LT Rating in Non-Cooperating
MEHTA & ASSOCIATES: Insolvency Resolution Process Case Summary
MON PURSE: Collapses Into Liquidation; Ceases Trading
PATWA AUTOMOTIVE: CRISIL Keeps D on INR45cr Loans in NonCooperating
PATWA MARKETING: CRISIL Keeps D on INR8cr Loan in Not Cooperating
PRECIOUS TRADELINK: Ind-Ra Keeps 'BB-' LT Rating in Non-Cooperating
RAICHUR LABORATORIES: CRISIL Withdraws Rating on INR15cr LT Loan
RAM KUMAR: CRISIL Keeps D on INR8cr Loans in Not Cooperating
SABARIS EDUCATIONAL: CRISIL Keeps D Ratings in Not Cooperating
SANATAN MERCHANTS: Ind-Ra Assigns 'BB' Long-Term Issuer Rating
SEFL DA II: Ind-Ra Lowers Credit Guarantee Trans Rating to 'BB+'
SEFL DA III: Ind-Ra Cuts Credit Guarantee Trans Rating to 'BB+'
SGM PACKAGING: CRISIL Keeps D Debt Ratings in Not Cooperating
SK WHEELS: Ind-Ra Keeps 'D' LT Issuer Rating in Non-Cooperating
STARSHINE ENGINEERING: Ind-Ra Keeps B+ LT Rating in Non-Cooperating
SVG GRANITES: Ind-Ra Moves 'B' LT Issuer Rating to Non-Cooperating
SWASTIK COAL: Insolvency Resolution Process Case Summary
VISHNU GRANITES: Ind-Ra Keeps B+ Issuer Rating in Non-Cooperating
VISIONINDIA SOFTWARE: CRISIL Cuts Rating on INR10.23cr Loan to D
J A P A N
JAPAN: Lowers Spending View, Says Overall Conditions Are Severe
S I N G A P O R E
EAGLE HOSPITALITY: Won't Hold Further EGM on Keeping Reit Manager
SWIBER HOLDINGS: Judicial Management Extended to Jan. 14
- - - - -
=================
A U S T R A L I A
=================
COMMAND GROUP: First Creditors' Meeting Set for Jan. 5
------------------------------------------------------
A first meeting of the creditors in the proceedings of Command
Group Pty Ltd will be held on Jan. 5, 2021, at 10:00 a.m. via Zoom
Video conferencing.
Stewart William Free and Bradd William Morelli of Jirsch Sutherland
were appointed as administrators of Command Group on Dec. 22,
2020.
ILLAWONG PROPERTIES: Second Creditors' Meeting Set for Jan. 6
-------------------------------------------------------------
A second meeting of creditors in the proceedings of Illawong
Properties Pty Ltd has been set for Jan. 6, 2021, at 10:30 a.m. at
Workspace 365, Level 11, 66 Clarence Street, in Sydney, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 5, 2021, at 5:00 p.m.
Trent Andrew Devine and Andrew John Spring of Jirsch Sutherland
were appointed as administrators of Illawong Properties on Nov. 27,
2020.
WATJICO NEW: First Creditors' Meeting Set for Jan. 7
----------------------------------------------------
A first meeting of the creditors in the proceedings of Watjico New
Pty Ltd will be held on Jan. 7, 2021, at 2:30 p.m. via telephone
conference facilities.
Jason Walter Bettles of Worrells Solvency & Forensic Accountants
was appointed as administrator of Watjico New on Dec. 23, 2020.
=========
I N D I A
=========
AKURTH CHEMICALS: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Akurth Chemicals (OPC) Private Limited
11/5, Anand Industrial Estate
Mohan Nagar, Ghaziabad
UP 201007
IN
Insolvency Commencement Date: December 3, 2020
Court: National Company Law Tribunal, Allahabad Bench Bench
Estimated date of closure of
insolvency resolution process: June 1, 2021
(180 days from commencement)
Insolvency professional: Tarun Maheshwari
Interim Resolution
Professional: Tarun Maheshwari
511, 5th Floor
The Business Hub
Sector-14, Kaushambi
Ghaziabad 201010
E-mail: tarun2507@gmail.com
akurthchemicals.irp@gmail.com
Last date for
submission of claims: January 1, 2021
BALAJI OIL: Ind-Ra Cuts LT Issuer Rating to 'BB-', Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Balaji Oil
Industries Pvt Ltd's (BOIPL) Long-Term Issuer Rating to 'IND BB-'
from 'IND BB'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR100 mil. Fund-based facilities downgraded with IND BB-/
Stable rating; and
-- INR223.9 mil. Non-fund-based facilities affirmed with
IND A4+ rating.
The downgrade reflects the fall in BOIPL's revenue and the poor
liquidity position in FY20.
KEY RATING DRIVERS
BOIPL's revenue fell to INR763 million in FY20 (FY19: INR932
million, FY18: INR765 million) on account of a decline in sales,
lower realizations and the impact of COVID-19-led disruptions in
the last quarter of the year. In 1HFY21, the revenue achieved was
lower at INR292 million because of a decline in sales during the
pandemic-led lockdown. As of Dec. 2, 2020, BOIPL had an order book
of INR213.6 million, which would be executed till end-January 2021,
according to the management. Ind-Ra expects the revenue to
marginally fall in FY21, considering the revenue reported in
1HFY21, the existing order book position, the absence of trading
revenue and the slowdown in the global industry. The figures for
FY20 are provisional in nature.
Liquidity Indicator - Poor: The fund-based and non-fund-based
limits were fully utilized during the 12 months ended November
2020. Also, there was one instance of overutilization of fund-based
facilities for more than 10 days in July 2020 on account of the
liquidity issue caused by the pandemic-related disruptions. The
cash flow from operations deteriorated to negative INR72 million in
FY20 (FY19: negative INR12 million) on account of unfavorable
changes in the working capital. The cash and cash equivalent
remained low at INR1.1 million in FY20 (FY19: INR6.7 million). The
company's net cash conversion cycle deteriorated to 88 days in FY20
(FY19: 21 days) on account of an increase in the inventory days to
175 days (FY19: 127 days), due to the company's expansion in
Karnataka and Maharashtra, the need to stock a new edible oil
product that has been providing high margins and has been
witnessing high demand in the domestic market and a decline in the
creditor days to 111 days (FY19: 126 days) due to lower imports of
raw material.
The ratings also factor in BOIPL's weak credit metrics due to high
debt levels. In FY20, the interest coverage (operating EBITDA/gross
interest expense) marginally improved to 1.4x (FY19: 1.3x) on
account of an increase in the absolute EBITDA to INR22.7 million
(INR20.6 million). The net leverage (total adjusted net
debt/operating EBITDAR) deteriorated to 5.4x in FY20 (FY19: 3.0x)
on account of increase in the total debt to INR124 million (INR68
million) due to higher utilization of the fund-based limits
resulting from increase in the fund-based limit. Ind-Ra expects the
credit metrics to deteriorate further in FY21 on account of an
increase in the total debt. The company does not have any major
debt-led capex plans for the next two years.
The ratings continue to be constrained by BOIPL's modest EBITDA
margins due to the intense competition in the industry. In FY20,
the EBITDA margin marginally improved to 2.97% (FY19: 2.21%) on
account of an increase in the absolute EBITDA to INR23 million
(FY19: INR21 million) due to a decline in the operating expenses.
The return on capital employed was 9.4% in FY20 (FY19: 9.4%). The
company reported a higher margin of 5.2% in 1HFY21 due to a higher
demand. Ind-Ra expects the EBITDA margin to slightly improve in
FY21 on account of the rise in margins in1HFY21 and higher sales of
the new high-margin product.
The ratings also continue to be constrained by BOIPL's exposure to
hedging risk. The company partly imports its raw material (FY20:
45%; FY19: 50%), while it sells its products only in the domestic
market. The company is mitigating its hedging risk to some extent
using forward contracts. However, the major portion remains
unhedged, due to which hedging risk exists.
The ratings, however, are supported by the promoter's experience of
over three decades in manufacturing of refined palm oil, refined
oil and crude palm oil, hydrogenated vegetable cooking oil, and
bakery shortening business.
RATING SENSITIVITIES
Negative: A decline in the revenue or EBITDA margin, leading to
deterioration in the credit metrics, with further weakening of the
liquidity position, on a sustained basis, could be negative for the
ratings.
Positive: A substantial increase in the revenue along with a rise
in the EBITDA margins, leading to the interest coverage exceeding
2.0x, on a sustained basis, could be positive for the ratings.
COMPANY PROFILE
Established in 1985, BOIPL is engaged in the manufacturing of
refined palm oil, refined oil and crude palm oil, hydrogenated
vegetable cooking oil, and bakery shortening.
FIZA DEVELOPERS: Ind-Ra Assigns 'B+' Issuer Rating, Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Fiza Developers &
Infrastructure Private Limited (Fiza) a Long-Term Issuer Rating of
'IND B+'. The Outlook is Stable.
The instrument-wise rating action is:
-- INR150 mil. Fund based facilities assigned with IND B+/Stable
/IND A4 rating.
KEY RATING DRIVERS
The ratings reflect Fiza's small scale of operations, as reflected
by a revenue of INR120 million in FY20 (FY19: INR75 million). The
revenue rose in FY20 due to increased execution of orders. FY20
financials are provisional in nature.
The ratings are constrained by the company's modest EBITDA margin.
The margin contracted to 35.2% in FY20 (FY19: 50.5%) due to an
increase in the subcontract charges. The company's return on
capital employed was 11% in FY20 (FY19: 10%).
Liquidity Indicator - Poor: The company utilized its fund-based
facilities at 70% during the 12 months ended November 2020.
However, the company had over-utilized its fund-based limit, up to
31 days, in January 2020. The company's cash flow from operations
improved to INR12 million in FY20 (FY19: negative INR144 million)
due to an improvement in its absolute EBITDA to INR42.3 million
(INR37.8 million). The company had an unchanged cash balance of
INR2 million at FYE20.
The ratings factor in the company's modest credit metrics. Its
interest coverage (operating EBITDA/interest expense) improved to
2.2x in FY20 (FY19: 1.9x) and net leverage (net debt/operating
EBITDA) to 3.1x (3.9x) due to the improved EBITDA and a reduction
in its short-term usage to INR133 million (INR151 million).
The ratings, however, are supported by the promoters' over two
decades of experience in renewable energy consulting works.
RATING SENSITIVITIES
Positive: An improvement in the revenue and liquidity while
maintaining the EBITDA margin, leading to a further improvement in
the credit metrics will be positive for the ratings.
Negative: Any deterioration in the revenue and operating
profitability, leading to deterioration in the liquidity position
and credit metrics, will be negative for the ratings.
COMPANY PROFILE
Fiza, incorporated in 2007, is engaged in consultant activities of
solar and wind energy solutions.
J. P. INDUSTRIES: CRISIL Keeps D on INR6cr Credit in NonCooperating
-------------------------------------------------------------------
CRISIL said the rating on bank facilities of J. P. Industries (JPI)
continues to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with JPI for obtaining
information through letters and emails dated May 23, 2020 and
November 14, 2020 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 JPI, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on JPI is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of JPI
continues to be 'CRISIL D Issuer Not Cooperating'.
JPI was established in 1990 as a partnership firm by Mr. Harish
Kumar, Mr. Ashok Kumar and Mr. Rakesh Kumar. The firm processes
basmati rice at its plant at Jalalabad in Punjab. It has milling
and sorting capacity of 4 tonne per hour.
JOSAN FOODS: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL said the ratings on bank facilities of Josan Foods Private
Limited (JFPL; part of the Josan group) continue to be 'CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 37 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 0.56 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 20 CRISIL D (ISSUER NOT
COOPERATING)
Warehouse Receipts 10 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with JFPL for obtaining
information through letters and emails dated May 23, 2020 and
November 14, 2020 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 JFPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on JFPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of JFPL
continues to be 'CRISIL D Issuer Not Cooperating'.
For arriving at the rating, CRISIL has combined the business and
financial risk profiles of JFPL and Ganesh Rice Mills (Partnership)
{GRM]. This is because these two entities, together referred to
herein as the Josan group, are in a similar line of business and
have a common management.
About the Group
JFPL, set up in 2000 by Mr. Hukam Chand Josan and Mr. Sher Chand
Josan in Ferozepur (Punjab), mills and shells rice.
GRM, set up in 2010, mills rice. Currently, the firm is managed by
its partners, Mr. Sarvjeet Josan and Mr. Pushpinder Singh.
The Josan group has combined milling and sorting capacities of 14
tonnes per hour (tph) and 10 tph, respectively.
KAKUMANU SEEDS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Kakumanu Seeds
(Kakumanu) continue to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Drop Line 2.87 CRISIL B+/Stable (ISSUER NOT
Overdraft COOPERATING)
Facility
Proposed Long Term 4.38 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with Kakumanu for
obtaining information through letters and emails dated May 23, 2020
and November 14, 2020 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 Kakumanu, which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes that rating action on Kakumanu is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of
Kakumanu continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Kakumanu Seeds was set up in 2009 as a sole proprietorship concern
by Ms. Karumanchi Karthika. The firm undertakes processing and
conditioning of seeds on job work basis. The firm's facilities are
located at Kodakandla in Medak district, Telangana.
KALP DIAMONDS: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Kalp Diamonds (Kalp)
continue to be 'CRISIL D/CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Export Packing 4 CRISIL D (ISSUER NOT
Credit COOPERATING)
Foreign Exchange 0.4 CRISIL D (ISSUER NOT
Forward COOPERATING)
Post Shipment 11 CRISIL D (ISSUER NOT
Credit COOPERATING)
Proposed Long Term 1.6 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with Kalp for obtaining
information through letters and emails dated May 23, 2020 and
November 14, 2020 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 Kalp, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on Kalp is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of Kalp
continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
Set up as a partnership firm in 1995, Kalp cuts and polishes
diamonds. The firm also trades in rough and polished diamonds. It
derives 85-90% of its revenue from processing of diamonds, and the
rest from trading. It has six partners: Mr. Anandlal Shah, Mr.
Bhavik Shah, Mr. Jayesh Shah, Ms Diptiben Shah, Ms Geetaben Shah
and Ms Jigishaben Shah.
KARTHIK TRAVELS: CRISIL Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------------
CRISIL said the rating on bank facilities of Karthik Travels
Private Limited (KTPL) continues to be 'CRISIL B-/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft 6 CRISIL B-/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with KTPL for obtaining
information through letters and emails dated May 23, 2020 and
November 14, 2020 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 KTPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on KTPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of KTPL
continues to be 'CRISIL B-/Stable Issuer Not Cooperating'.
Karthik Travels was set up as a proprietorship firm in 1998 for
providing car rental services. The firm was reconstituted as a
private limited company with the current name in 2016. The company
also provides luxury car rental services. Operations are managed by
Mr. Eshwar Mohan.
KSA POWERINFRA: Ind-Ra Moves 'D' Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated KSA Powerinfra
Private Limited's Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR180 mil. Fund-based facilities (Long-term) migrated to non-
cooperating category with IND D (ISSUER NOT COOPERATING)
rating;
-- INR650 mil. Non-fund-based facilities (Short-term) migrated to
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating;
-- INR170 mil. Proposed fund-based facilities* is withdrawn*; and
-- INR550 mil. Proposed non-fund-based facilities* is withdrawn*.
*The ratings have been withdrawn since it was outstanding for more
than 180 days.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 13, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2007, KSA Powerinfra is an engineering, procurement
and construction company engaged in the execution of several
turnkey projects such as setting up of electric substations (up to
400kV), transmission lines, wind power projects, co-generation
plants, process plants and industrial electrification.
KUTTANADU VIKASANA: CRISIL Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL said the rating on bank facilities of Kuttanadu Vikasana
Samithy (KVS) continues to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 1.15 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with KVS for obtaining
information through letters and emails dated July 31, 2020 and
November 30, 2020 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 KVS, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on KVS is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of KVS
continues to be 'CRISIL D Issuer Not Cooperating'.
KVS is a non-profit organisation managed by Fr Thomas Peelianickal.
The organisation was registered in 1979, and was taken over by the
current management in 1993. The company operates in Alappuzha,
Kerala and provides microfinance loans to poor women.
LAJJYA STEELS: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Lajjya Steels Limited
(LSL) continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 18 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 0.5 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
Standby Line 1.5 CRISIL D (ISSUER NOT
of Credit COOPERATING)
CRISIL has been consistently following up with LSL for obtaining
information through letters and emails dated May 23, 2020 and
November 14, 2020 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 LSL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on LSL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of LSL
continues to be 'CRISIL D Issuer Not Cooperating'.
Incorporated in 2009 and promoted by the Soni family of Ludhiana,
Punjab, LSL trades in wire rods and engages in wire drawing. The
company has been a dealer of JSW Steel Ltd and Rashtriya Ispat
Nigam Ltd for over seven years. LSL also trades in yarn.
LAXMI MEGHAN: CRISIL Keeps B+ Debt Rating in Not Cooperating
------------------------------------------------------------
CRISIL said the rating on bank facilities of Laxmi Meghan
Speciality Hospital (LMSH) continues to be 'CRISIL B+/Stable Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft .25 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with LMSH for obtaining
information through letters and emails dated May 23, 2020 and
November 14, 2020 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 LMSH, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on LMSH is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of LMSH
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Set up in 1994, Kerala based LMSH operates a hospital in Kanhangad
with 80 beds; SCH also operates a 80 bed hospital in Kanhangad. The
day-to-day operations of the group are managed by the partners Dr.
M V Sasidharan his wife, Dr. C M Sathidevi and his daughter, Dr.
Sheetal.
MALWA AUTOMOBILES: Ind-Ra Keeps 'BB-' LT Rating in Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Malwa
Automobiles Private Limited's Long-Term Issuer Rating of 'IND
BB-(ISSUER NOT COOPERATING)' in the non-cooperating category and
simultaneously withdrawn it.
The instrument-wise rating actions are:
-- INR186 mil. *Fund-based working capital limits maintained in
the non-cooperating category and withdrawn.
* Maintained at 'IND BB- (ISSUER NOT COOPERATING)'/'IND A4+
(ISSUER NOT COOPERATING)' before being withdrawn
KEY RATING DRIVERS
The ratings have been maintained in the non-cooperating category
because the issuer did not participate in the rating exercise
despite continuous requests and follow-ups by Ind-Ra.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no-objection certificate from the lenders. This is
consistent with the Securities and Exchange Board of India's
circular dated March 31, 2017 for credit rating agencies.
COMPANY PROFILE
Incorporated in 1997 by Bal Krishan Sharma and Kamlesh Sharma,
Malwa Automobiles is an authorized sales, service and spares)
dealer for Tata Motors Limited.
MEHTA & ASSOCIATES: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Mehta & Associates Fire Protection
Systems Private Limited
B-11, Maharaja Palace, 6th Floor
Near Vijay Cross Roads
Ahmedabad 380009
Insolvency Commencement Date: December 16, 2020
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: June 14, 2021
Insolvency professional: CA Nimai Gautam Shah
Interim Resolution
Professional: CA Nimai Gautam Shah
605-606-607, Silver Oaks
Near Mahalaxmi Char Rasta
Paldi, Ahmedabad 380007
Gujarat
E-mail: cnjabd@gmail.com
Last date for
submission of claims: January 1, 2021
MON PURSE: Collapses Into Liquidation; Ceases Trading
-----------------------------------------------------
Eloise Keating at SmartCompany reports that luxury leather goods
retailer Mon Purse has entered liquidation and reportedly ceased
trading, amid complaints from customers saying they have been
waiting for weeks to receive their orders.
SmartCompany relates that liquidators from Wexted Advisors are
seeking "urgent" expressions of interest for the business and its
assets, according to the Sydney Morning Herald, following their
appointment on December 11.
According to a notice on the Mon Purse website, the business'
online store is undergoing "scheduled maintenance" and its
made-to-order range is "temporarily unavailable due to the current
effects of COVID-19," SmartCompany relays.
A number of customers have taken to the brand's Facebook page in
recent weeks to complain about orders not being fulfilled, with
some saying they have been unable to contact the company, according
to SmartCompany.
In October, the retailer offered a 40%-off storewide sale to its
email subscribers but has not emailed the database since.
Similarly, the business' Facebook and Instagram accounts have not
been updated since mid-October, recalls SmartCompany.
Mon Purse was founded in 2014 by Lana Hopkins and Andrew Shub,
after Mr. Hopkins famously developed the idea during a build-a-bear
workshop at Bondi Junction with her nephew. Mon Purse allows
customers to monogram, customise and design their own luxury
handbags and leather goods.
Mr. Hopkins is no longer directly involved with the business,
having resigned from the role of chief executive and as a board
member in 2018. Shub, who is chief operating officer, remains a
director of the business.
Mr. Hopkins told the SMH on Dec. 16 she was saddened and "extremely
disappointed" to see the business enter liquidation.
Andrew McCabe from Wexted Advisors said the liquidators are still
determining the cause of the company's collapse.
"We are working with the company director to undertake an immediate
assessment of the company's financial position while seeking
expressions of interest," the report Mr. McCabe as saying.
PATWA AUTOMOTIVE: CRISIL Keeps D on INR45cr Loans in NonCooperating
-------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Patwa Automotive
Private Limited (PAPL; part of the Patwa Marketing group) continue
to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 36 CRISIL D (ISSUER NOT
COOPERATING)
Inventory 9 CRISIL D (ISSUER NOT
Funding Facility COOPERATING)
CRISIL has been consistently following up with PAPL for obtaining
information through letters and emails dated May 23, 2020 and
November 14, 2020 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 PAPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on PAPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of PAPL
continues to be 'CRISIL D Issuer Not Cooperating'.
For arriving at the rating, CRISIL has combined the business and
financial risk profiles of PAPL and Patwa Abhikaran Ratlam Private
Limited (PARPL). The two companies, together referred to as the
Patwa Marketing group, have common promoters, management team, and
business.
PARPL and PAPL were set up in 1989 and 2007, respectively, by Mr.
Surendra Patwa, a Madhya Pradesh-based businessman. The group is an
authorised dealer of passenger vehicles and light commercial
vehicles of M&M in Madhya Pradesh. The companies are managed by Mr.
Anil Sharma (CEO) with support from professionals. The group also
distributes polymer products.
PATWA MARKETING: CRISIL Keeps D on INR8cr Loan in Not Cooperating
-----------------------------------------------------------------
CRISIL said the rating on bank facilities of Patwa Marketing
Private Limited (PMPL) 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 PMPL for obtaining
information through letters and emails dated May 23, 2020 and
November 14, 2020 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 PMPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on PMPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of PMPL
continues to be 'CRISIL D Issuer Not Cooperating'.
UANPL and PMPL were incorporated in 1989 and 1995, respectively,
and are promoted by Mr. Surendra Patwa. The companies are del
credere agent (DCAs) for RIL's polymer products. PMPL is also a
carry and forwarding agent for Torrent Pharma Limited (TPL).
Registered office is in Indore. The promoter is also engaged in
automobile dealership through other entities.
PRECIOUS TRADELINK: Ind-Ra Keeps 'BB-' LT Rating in Non-Cooperating
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Precious
Tradelink Private Limited's Long-Term Issuer Rating in the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND BB- (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR100 mil. Proposed non-fund based limits* assigned and
migrated to non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating.
* The provisional rating of the proposed bank facilities has been
converted to final rating as per Ind-Ra's updated policy. This is
because the agency notes that debt seniority and general terms and
conditions of working capital facilities and term loan tend to be
uniform across banks, and are not a rating driver.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
Jan. 17, 2017. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2008, Precious Tradelink is engaged in the trading
of iron and steel. The company started its commercial operations in
2013. It is managed by Jagdish Prasad Kachhwal and Vijay Ladhania.
RAICHUR LABORATORIES: CRISIL Withdraws Rating on INR15cr LT Loan
----------------------------------------------------------------
Due to inadequate information, CRISIL, in line with SEBI
guidelines, had migrated the ratings of Raichur Laboratories
Private Limited (RLPL) to 'CRISIL D/CRISIL D Issuer Not
Cooperating'. CRISIL has now withdrawn its ratings on bank
facilities of RLPL following a request from the company and on
receipt of a 'no dues certificate' from the banker. Consequently,
CRISIL is migrating the ratings on bank facilities of RLPL from
'CRISIL D/CRISIL D Issuer Not Cooperating' to 'CRISIL D/CRISIL D.
The rating action is in line with CRISIL's policy on withdrawal of
bank loan ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 15 CRISIL D (Migrated from
'CRISIL D ISSUER NOT
COOPERATING'; Rating Withdrawn)
Overdraft 2.5 CRISIL D (Migrated from
'CRISIL D ISSUER NOT
COOPERATING'; Rating Withdrawn)
Proposed Cash
Credit Limit 1.5 CRISIL D (Migrated from
'CRISIL D ISSUER NOT
COOPERATING'; Rating Withdrawn)
Established in 2013 as a private limited company, RLPL is engaged
manufacturing Active pharmaceuticals intermediates (APIs) and its
intermediates. It has a manufacturing unit at Raichur, Karnataka.
The company is promoted by Mr. Giridhar Gopal. The company started
its commercial operations in December 2016.
RAM KUMAR: CRISIL Keeps D on INR8cr Loans in Not Cooperating
------------------------------------------------------------
CRISIL said the ratings on bank facilities of Ram Kumar Narwani
(RKN) continue to be 'CRISIL D/CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 5 CRISIL D (ISSUER NOT
COOPERATING)
Overdraft 3 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with RKN for obtaining
information through letters and emails dated May 23, 2020 and
November 14, 2020 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 RKN, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on RKN is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of RKN
continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
Set up in 2001, RKN is a partnership firm that constructs roads and
minor bridges for various government departments in Madhya Pradesh.
The firm is owned and managed by Mr. Ram Kumar Narwani and family.
SABARIS EDUCATIONAL: CRISIL Keeps D Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Sabaris Educational
Trust (SET) continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.5 CRISIL D (ISSUER NOT
COOPERATING)
Term Loan 11.2 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SET for obtaining
information through letters and emails dated May 23, 2020 and
November 14, 2020 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 SET, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on SET is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of SET
continues to be 'CRISIL D Issuer Not Cooperating'.
Set up in 1997 by Mr. T N P Muthoo Nataraajan, SET manages a higher
secondary school, Sri Dhayanandapuri Matriculation Higher Secondary
School, and an engineering college for women, Tejaa Shakthi
Institute of Technology, near Tiruppur in Tamil Nadu.
SANATAN MERCHANTS: Ind-Ra Assigns 'BB' Long-Term Issuer Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has taken the following rating
actions on Sanatan Merchants Private Limited (SMPL):
-- Long-Term Issuer Rating affirmed with IND BB/Stable rating;
-- INR19.5 mil. Fund-based working capital limits assigned with
IND BB/Stable/IND A4+ rating; and
-- INR130 mil. Fund-based working capital limit affirmed with
IND BB/Stable/IND A4+ rating.
RATING SENSITIVITIES
Negative: The interest coverage ratio remaining below 1.5x and
further stress on the liquidity position will be negative for the
ratings.
Positive: An improvement in the credit metrics as well as the
liquidity profile, on a sustained basis, will be positive for the
ratings.
COMPANY PROFILE
Incorporated in 1994 and with its registered office in Kolkata,
SMPL trades hand tools and power tools such as marble, stone
cutting machines, granite cutting machines, wood cutting machines,
pesticide sprayers and rice processing machines, and trades
writing, stationary, personal care products and other accessories.
The company is managed by its three directors -- Binod Maroti,
Kusum Maroti, and Nirav Maroti.
SEFL DA II: Ind-Ra Lowers Credit Guarantee Trans Rating to 'BB+'
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded SEFL DA
September 2019 II's (government of India) (GoI) partial credit
guarantee (PCG)-backed direct assignment transaction to 'IND BB+
(SO)' from 'IND A+ (SO)' while maintaining it on Rating Watch
Negative (RWN).
The detailed rating actions are:
-- INR3,412.55 bil. Assignee payouts issued on Sept. 30, 2019
coupon rate 10.01% due on Sept. 30, 2023 downgraded;
maintained on RWN with IND BB+ (SO)/RWN rating; and
-- INR379.17 mil. Assignor retention due on Sept. 30, 2023
downgraded; maintained on RWN with IND BB+ (SO)/RWN rating.
* The maturity dates are subject to change due to transaction
amendments, as a consequence of COVID-19 regulatory relief in the
form of a moratorium granted to borrowers in the pool.
^Balance after October 31, 2020 payout date
The construction equipment pool assigned to the assignee has been
originated by SREI Equipment Finance Limited (SEFL: collection and
processing agent (CPA), the assignor).
Ind-Ra has not considered the expenses incurred or benefits availed
under the PCG offered by the GoI for this rating assessment.
The downgrade is primarily driven by increased counterparty risk
emanating from the continuously worsening credit and liquidity
profile of the CPA caused by the COVID-19 pandemic and its business
consolidation with a lower rated parent, SREI Infrastructure
Finance Limited (SIFL), lower transaction's collections and
stretched asset quality, exhibited by significantly higher
proportion of loans in 90+ days past due bucket. Furthermore, the
monitoring of the ratings has been impeded by limited sharing of
loan level and overall portfolio level performance data by the
originator as a consequence of the operational hindrances due to
the COVID-19, as informed by SEFL.
SEFL had approached the National Corporate Law Tribunal (NCLT) with
a scheme of arrangement with its creditors to seek consent from the
required majority of creditors for its business consolidation with
SIFL, and also to avail one-time restructuring from its creditors
to avoid cash flow shortfall and asset liability mismatches, given
that the majority of SEFL's borrowers are seeking restructuring on
the asset side. As per SEFL's financial statement dated September
30, 2020, the NCLT has passed an order dated October 21, 2020
stating, inter alia, that creditors, as mentioned in the scheme, of
SEFL shall maintain status quo till further orders with respect to
their respective contractual terms dues claims and rights, and are
estopped from taking any coercive steps, including reporting in any
form and/or changing the account status of SEFL from being a
standard asset, which will prejudicially affect the implementation
of the scheme and render the said scheme ineffective. As per the
order, the meetings have to be conducted with creditors to discuss
the scheme of arrangement proposed by SEFL in December 2020.
Furthermore, as informed by the company to the National Stock
Exchange Limited and BSE Ltd, a special audit is being undertaken
by an auditor appointed by the Reserve Bank of India.
The ratings have been maintained on RWN in view of the continued
uncertainty around the pending outcome of the aforesaid meeting
with the creditors and its impact on the liquidity position of
SEFL. The RWN also indicates the possibility of a further rating
downgrade in the event of a negative outcome of the Reserve Bank of
India initiated special audit.
KEY RATING DRIVERS
Impact on Servicing Capabilities: The rating action reflects the
possible fluctuations in the servicing, collection and recovery
expertise of SEFL due to the weakening of its credit profile,
non-implementation of the corrective action prompted by the rating
trigger and the uncertainty around the impact of business
consolidation. Although the underlying loans had been assigned to
the assignee through a bilateral arrangement, SEFL continues to be
the CPA. In the absence of a back-up servicer, any possible
weakening of SEFL's credit profile will significantly impact the
collection efficiency and recovery of the transaction.
Evidenced by the further downgrade of SEFL's rating by another
credit rating agency, the weakening credit profile can potentially
increase the credit risk of the direct assignment transactions. In
accordance with the rating trigger, the downgrade has prompted the
following corrective actions:
a. daily transfer of receivable collection in the trust account;
or
b. replacement of the CPA, if required by the assignee.
Ind-Ra believes non-implementation of the abovementioned corrective
actions could expose the transaction to operational risk emanating
from the weakening credit profile of the CPA.
Availability of External Credit Support: At end-October 2020, the
available credit enhancement (CE) was INR900.0 million and the
current pool principal outstanding (POS), including overdue, was
INR3,791.72 million. The current CE increased to 24.16% of the
current POS at end-October 2020 from 18.00% in September 2019. The
CE is in the form of fixed deposits with Punjab National Bank ('IND
AAA'/Stable/'IND A1+') in the name of the assignor, with a lien
marked in favor of the assignee/assignee representative. For the
two Ind-Ra rated asset-backed securities' transactions originated
by SEFL, the December 2020 payout date PTC interest and principal
obligation had been met only by utilizing the CE.
Key Pool Characteristics: At end-October 2020, the 1,704-loan pool
had a weighted average seasoning of 28.78 months and an
amortization of 24.16%. Loans delinquent by over 90 days past due
(dpd) were 32.56% of the original POS and 42.93% of the current POS
as of the collection month of October 2020. The transaction
collection efficiency has been dismal at 44.4% and 40.2% in the
collection month of September 2020 and October 2020, respectively,
(calculated as actual collection against the pre-moratorium
billing). The agency saw a cumulative prepayment of 5.0% in the
transaction in the 13 months from the date of issuance.
Liquidity Indicator - Poor: Assuming a base case default scenario,
the stressed cash flow along with the internal and external CE
provides a liquidity coverage ratio of less than 1.25x of the
monthly payment obligation for assignee payouts and assignor
retention.
Key Assumptions: At the time of the initial rating, Ind-Ra derived
a base case gross default rate (90+dpd) in the range of 7.0%-9.0%.
The agency has analyzed the characteristics of the pool and
established its base case assumptions through the four key
performance variables that collectively affect the credit risk in a
transaction - default rate, recovery rate, recovery timeline and
prepayment rate.
Ind-Ra stressed the above variables for the rating level as per the
'Rating Criteria for Indian Asset-Backed Securitizations'. Based on
the rating level, the agency also has made an adjustment for the
borrowers carrying the highest interest rate loans, assuming they
will either prepay or default.
RATING SENSITIVITIES
The RWN indicates that the rating may be either downgraded or
affirmed. Ind-Ra will resolve the RWN once it has more clarity on
the asset quality and funding profile of the issuer. Ind-Ra will
also monitor the originator's credit profile on an ongoing basis,
and in the event of further deterioration in the credit profile,
will take appropriate rating action to reflect the increased
operational risk in the transaction.
Ind-Ra conducted rating sensitivity tests for the assignee payout
and assignor retention. If the assumptions of both base case
default rate and base recovery rate are simultaneously worsened by
20%, the model-implied rating sensitivity suggests that the
assignor payout and assignor retention ratings will be able to
sustain its current rating level.
COMPANY PROFILE
SEFL is engaged in the financing of construction, IT, medical and
agriculture-based farm equipment operating through 78 branches, 92
satellite locations and 153 SREI entrepreneur partners spread
across 21 states in India. SEFL's revenue increased to INR50.79
billion during FY20 (FY19: INR43.78 billion). The company's profit
after tax decreased to INR0.56 billion in FY20 (FY19: INR3.06
billion), while its gross stage III asset increased to INR33.2
billion (FY19: INR16.7 billion).
In 1HFY21, the company reported a profit after tax of INR0.22
billion. As of September 30, 2020, SEFL had assets under management
of INR356.32 billion, of which 10.16% is in stage III asset
category.
SEFL DA III: Ind-Ra Cuts Credit Guarantee Trans Rating to 'BB+'
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded SEFL DA
September 2019 III's (government of India (GoI) partial credit
guarantee (PCG)-backed direct assignment transaction) to 'IND BB+
(SO)' from 'IND A+ (SO)' while maintaining it on Rating Watch
Negative (RWN).
The detailed rating actions are:
-- INR2,221.88 bil. Assignee payouts issued on Sept. 30, 2019
coupon rate 10.26% due on Sept. 30, 2023 downgraded;
maintained on RWN with IND BB+(SO)/RWN rating; and
-- INR246.88 mil. Assignor retention due on September 30, 2023
downgraded; maintained on RWN with IND BB+(SO)/RWN rating.
* The maturity dates are subject to change due to transaction
amendments, as a consequence of the COVID-19 regulatory relief in
the form of moratorium granted to borrowers in the pool.
^Balance after Oct. 31, 2020 payout date
The construction equipment pool assigned to the trust is originated
by SREI Equipment Finance Limited (SEFL; the assignor, and
collection and processing agent (CPA)).
Ind-Ra has not considered the expenses incurred or benefits availed
under the PCG offered by the GoI for this rating assessment.
The downgrade is primarily driven by increased counterparty risk
emanating from the continuously worsening credit and liquidity
profile of the CPA caused by the COVID-19 pandemic and its business
consolidation with a lower-rated parent, SREI Infrastructure
Finance Limited (SIFL), lower transaction's collections and
stretched asset quality, exhibited by significantly higher
proportion of loans in 90+ days past due (dpd) bucket. Furthermore,
the monitoring of the ratings has been impeded by limited sharing
of loan level and overall portfolio level performance data by the
originator as a consequence of the operational hindrances due to
the COVID-19, as informed by SEFL.
SEFL had approached the National Corporate Law Tribunal (NCLT) with
a scheme of arrangement with its creditors to seek consent from the
required majority of creditors for its business consolidation with
SIFL, and also to avail one-time restructuring from its creditors
to avoid cash flow shortfall and asset liability mismatches, given
that the majority of SEFL's borrowers are seeking restructuring on
the asset side. As per SEFL's financial statement dated September
30, 2020, the NCLT has passed an order dated October 21, 2020
stating, inter alia, that creditors, as mentioned in the scheme, of
SEFL shall maintain status quo till further orders with respect to
their respective contractual terms dues claims and rights, and are
estopped from taking any coercive steps, including reporting in any
form and/or changing the account status of SEFL from being a
standard asset, which will prejudicially affect the implementation
of the scheme and render the said scheme ineffective. As per the
order, the meetings have to be conducted with creditors to discuss
the scheme of arrangement proposed by SEFL in December 2020.
Furthermore, as informed by the company to the National Stock
Exchange Limited and BSE Ltd, a special audit is being undertaken
by an auditor appointed by the Reserve Bank of India.
The RWN has been maintained in view of the continued uncertainty
around the pending outcome of the aforesaid meeting with the
creditors and its impact on the liquidity position of SEFL. RWN
also indicates the possibility of further rating downgrade in the
event of negative outcome of the Reserve Bank of India initiated
special audit.
KEY RATING DRIVERS
Impact on Servicing Capabilities: The rating action reflects
possible fluctuations in the servicing, collection and recovery
expertise of SEFL due to the weakening of its credit profile,
non-implementation of the corrective action prompted by the rating
trigger and uncertainty around the impact of business
consolidation. Although the underlying loans had been assigned to
the assignee through a bilateral arrangement, SEFL continues to be
the CPA. In the absence of a back-up servicer, any possible
weakening of SEFL's credit profile arising from the business
consolidation will significantly impact the collection efficiency
and recovery of the transaction.
Evidenced by the further downgrade of SEFL's rating by other credit
rating agency, the weakening credit profile can potentially
increase the credit risk of the direct assignment transactions. As
per the rating trigger, the downgrade has prompted following
corrective actions:
a. daily transfer of receivable collection in the trust
account; or
b. replacement of the CPA, if required by the assignee.
Ind-Ra believes non-implementation of the abovementioned corrective
actions could expose the transaction to operational risk emanating
from the weakening credit profile of the CPA.
Availability of External Credit Support: In end-October 2020, the
available credit enhancement (CE) was INR900.0 million and the
current pool principal outstanding (POS) was INR2,468.76 million.
The current CE increased to 36.46% of the current POS at
end-October 2020 from 18.0% in September 2019. The CE is in the
form of fixed deposits with Punjab National Bank ('IND
AAA'/Stable/'IND A1+') in the name of the assignor, with a lien
marked in favor of the assignee/ assignee's representative. For two
Ind-Ra rated asset-backed securities' transactions originated by
SEFL, the December 2020 pay-out date PTC interest and principal
obligation had been met only by utilizing CE.
Key Pool Characteristics: In end-October 2020, the 253-loan pool
had a weighted average seasoning of 26.17 months and an
amortization of 50.60%. Loans delinquent by over 90 dpd were 15.53%
of the original POS and 31.43% of the current POS as of the
collection month of October 2020. The transaction collection
efficiency has been dismal at 47.6% and 52.9% in the collection
month of September 2020 and October 2020, respectively, (calculated
as actual collection against the pre-moratorium billing). The
agency saw a cumulative prepayment of 3.4% in the transaction in
the 13 months from the date of issuance.
Liquidity Indicator - Poor: Assuming a base case default scenario,
the stressed cash flow along with the internal and external CE
provides a liquidity coverage ratio of less than 1.25x of the
monthly payment obligation for assignee payouts and assignee
retention.
Key Assumptions: At the time of the initial rating, Ind-Ra derived
a base case gross default rate (90+ dpd) in the range of 6.5%-7.5%.
The agency had analyzed the characteristics of the pool and
established its base case assumptions through the four key
performance variables that collectively affect the credit risk in a
transaction - default rate, recovery rate, recovery timeline and
prepayment rate. In the four months since the transaction closing,
none of the loans moved to the 90+ dpd bucket.
Ind-Ra stressed the above variables for the rating level as per the
'Rating Criteria for Indian Asset-Backed Securitizations'. Based on
the rating level, the agency also has made an adjustment for the
borrowers carrying the highest interest rate loans, assuming they
will either prepay or default.
RATING SENSITIVITIES
The RWN indicates that the rating may be either downgraded or
affirmed. Ind-Ra will resolve the RWN once it has more clarity on
the asset quality and funding profile of the issuer. Ind-Ra will
also monitor the originator's credit profile on an ongoing basis,
and in the event of further deterioration in the credit profile,
will take an appropriate rating action to reflect the increased
operational risk in the transaction.
Ind-Ra conducted rating sensitivity tests for the assignee payout
and the assignor retention. If the assumptions of both base case
default rate and base recovery rate are simultaneously worsened by
20%, the model-implied rating sensitivity suggests that the
Assignor Payout and Assignor Retention ratings will be able to
sustain its current rating level.
COMPANY PROFILE
SEFL is engaged in the financing of construction, IT, medical and
agriculture-based farm equipment operating through 78 branches, 92
satellite locations and 153 SREI entrepreneur partners spread
across 21 states in India. SEFL's revenue increased to INR50.79
billion during FY20 (FY19: INR43.78 billion). The company's profit
after tax decreased to INR0.56 billion in FY20 (FY19: INR3.06
billion), while its gross stage III asset increased to INR33.2
billion (INR16.7 billion).
In 1HFY21, the company reported profit after tax of INR0.22
billion. As of September 30, 2020, SEFL had an asset under
management of INR356.32 billion of which 10.16% is in stage III
asset category.
SGM PACKAGING: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of SGM Packaging
Industries (SGM) continue to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.25 CRISIL D (ISSUER NOT
COOPERATING)
Cash Credit 3.5 CRISIL D (ISSUER NOT
COOPERATING)
Letter of Credit .25 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 2.00 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 0.50 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SGM for obtaining
information through letters and emails dated May 23, 2020 and
November 14, 2020 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 SGM, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on SGM is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of SGM
continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
Set up in 2007 as a proprietorship firm by Mr. Rajesh Chauhan, SGM
manufactures wooden crates, corrugated paper boxes, and plastic
pallets at its facility in Gurgaon.
SK WHEELS: Ind-Ra Keeps 'D' LT Issuer Rating in Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained SK Wheels Pvt
Ltd's Long-Term Issuer Rating in the non-cooperating category. The
issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings. The rating will continue to appear as
'IND D (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR318 mil. Term loans (Long-term) maintained in non-
cooperating category with IND D (ISSUER NOT COOPERATING)
rating;
-- INR1.20 bil. Fund-based working capital facilities (Long-term)
maintained in non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating;
-- INR60 mil. Non-fund-based working capital facilities (Short-
term) maintained in non-cooperating category with IND D
(ISSUER NOT COOPERATING) rating;
-- INR130 mil. Proposed term loan withdrawn (the company did not
proceed with the instrument as envisaged); and
-- INR70 mil. Proposed fund-based working capital facilities
withdrawn the company did not proceed with the instrument as
envisaged).
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
Oct. 10, 2018. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Established by Anil Kumar in 2004, SK Wheels is a dealer of Maruti
Suzuki India Limited for new, premium (NEXA) and used cars in
Mumbai, Thane and Raigarh. It also provides after-sales services,
related accessories and financial services for the sale and
purchase of cars.
STARSHINE ENGINEERING: Ind-Ra Keeps B+ LT Rating in Non-Cooperating
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Starshine
Engineering (India) Private Limited's Long-Term Issuer Rating in
the non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings The rating will
continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating action is:
-- INR100 mil. Proposed non-fund based limits* assigned and
migrated to non-cooperating category with IND A4 (ISSUER NOT
COOPERATING) rating.
* The provisional rating of the proposed bank facilities has been
converted to final rating as per Ind-Ra's updated policy. This is
because the agency notes that debt seniority and general terms and
conditions of working capital facilities and term loan tend to be
uniform across banks, and are not a rating driver.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
Jan. 17, 2017. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2008, Starshine Engineering (India)is engaged in
the trading of iron and steel, and the manufacturing of parts on an
order basis. The company is managed by Satish Ladhania and Jagdish
Prasad Kachhwal.
SVG GRANITES: Ind-Ra Moves 'B' LT Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated SVG Granites
Private Limited's (SVGGL; formerly SVG Granites Limited) Long-Term
Issuer Rating of 'IND B' to the non-cooperating category and has
simultaneously withdrawn it. The Outlook was Stable.
The instrument-wise rating actions are:
-- INR102 mil. Fund-based working capital limit* migrated to the
non-cooperating and withdrawn; and
-- INR28 mil. Non-fund-based working capital limit** migrated to
the non-cooperating and withdrawn.
*Migrated to 'IND B (ISSUER NOT COOPERATING)' before being
withdrawn
**Migrated to 'IND A4 (ISSUER NOT COOPERATING)' before being
withdrawn
KEY RATING DRIVERS
SVGGL did not participate in the rating exercise despite continuous
requests and follow-ups by Ind-Ra.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no objection certificate from the lender. This is
consistent with the Securities and Exchange Board of India's
circular dated March 31, 2017 for credit rating agencies.
COMPANY PROFILE
SVGGL processes rough granites blocks to derive granite slabs of
various dimensions and exports them. The company is headed by
Kishan Agarwal, Kiran Agarwal, and Naman Agarwal. Its registered
office is in Secunderabad, Andhra Pradesh.
SWASTIK COAL: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Swastik Coal Corporation Private Limited
'Swastik House'
21/3 Ratlam Kothi
Near Hotel Omani Palace
Indore, MP 452001
Insolvency Commencement Date: December 21, 2020
Court: National Company Law Tribunal, Nagpur Bench
Estimated date of closure of
insolvency resolution process: June 18, 2021
(180 days from commencement)
Insolvency professional: Mr. Umang Subhashchandra Khandelwal
Interim Resolution
Professional: Mr. Umang Subhashchandra Khandelwal
6AB, Mangaldeep Apartment
Plot No. 13/14 Farmland
Nr Gurudwara Ramdaspeth
Nagpur 440010
Maharashtra
E-mail: umang.khandelwal@gmail.com
- and -
Umang Khandelwal, Plot No. 1
Flat No. 201/202
Shiv Gaurav Estate Apartment
Near Traffic Park
Bhagwagar Layout
Dharampeth
Nagpur 440010
E-mail: irpsccpl@gmail.com
Last date for
submission of claims: January 3, 2021
VISHNU GRANITES: Ind-Ra Keeps B+ Issuer Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Sri Vishnu
Granites Private Limited's (SVGPL) Long-Term Issuer Rating in the
non-cooperating category and has simultaneously withdrawn it.
The instrument-wise rating actions are:
-- INR47.5 mil. Fund-based limits* is withdrawn; and
-- INR6 mil. Non-fund-based limits** is withdrawn.
*Maintained at 'IND B+ (ISSUER NOT COOPERATING)' before being
withdrawn
**Maintained at 'A4 (ISSUER NOT COOPERATING)' before being
withdrawn
KEY RATING DRIVERS
The ratings have been maintained in the non-cooperating category as
SVGPL did not participate in the rating exercise despite continuous
requests and follow ups by Ind-Ra.
Ind-Ra is no longer required to maintain the ratings, as it has
received no-objection certificates from the rated facilities'
lenders. This is consistent with the Securities and Exchange Board
of India's circular dated Nov. 17, 2020 for credit rating
agencies.
COMPANY PROFILE
Incorporated in 1994 in Telangana, SVGPL processes rough granite
blocks into granite slabs and exports them. The company is promoted
by Kishan Agarwal, Kiran Agarwal and Naman Agarwal.
VISIONINDIA SOFTWARE: CRISIL Cuts Rating on INR10.23cr Loan to D
----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Visionindia Software Exports Limited (VISEL) to 'CRISIL D/CRISIL D'
from 'CRISIL B/Stable/CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 10.23 CRISIL D (Downgraded from
'CRISIL A4')
Cash Credit 6 CRISIL D (Downgraded from
'CRISIL B/Stable')
Long Term Loan 3.4 CRISIL D (Downgraded from
'CRISIL B/Stable')
The downgrade reflects recent delays in debt servicing of term loan
by VISEL and its account consequently being classified as SMA 1 on
November 1, 2020.
The rating reflects VISEL's stretched working capital cycle, modest
scale of operations, and recent delays in debt servicing. These
weaknesses are partially offset by the extensive experience of the
promoters in the information technology (IT) industry.
Key Rating Drivers & Detailed Description
Weakness:
* Recent delays in debt servicing: There have been recent delays in
servicing debt obligations on term loan in September 2020 and
October 2020 due to weak liquidity on account of stretched
payments.
* Stretched working capital cycle: Operations are working capital
intensive, as reflected in gross current assets days 105 for the
year ended March 31, 2020. This is primarily driven by high
receivables and inventory holding days of 46 and 60 days
respectively. As a result, liquidity remains under pressure.
* Moderate Scale of operations: Although revenue recorded a healthy
growth rate of 30-32% y-o-y for the last 3 fiscals, the scale of
operations remained moderate. The revenues are expected to increase
however, will remain moderate in highly competitive IT solution
business. Further, the revenues and operating profitability remains
susceptible to the tender based nature of operations.
Strength:
* Extensive experience of promoters: The decade-long presence of
the promoters in the IT industry and their strong relationships
with key customers, will continue to support the business risk
profile. Due to its strong relationship with existing clients in
the banking Solutions space, company has successfully established
more than 8700+ touch points PAN India.
Liquidity Poor
There have been recent delays in servicing debt obligations on term
loan for the months of September 2020 and October 2020 due to weak
liquidity on account of stretched payments. Company was given
blanket moratorium on its term loan and working capital facilities
from March to August 2020.
Rating Sensitivity factors
Upward factors:
* Timely repayment of debt obligations for 90 days
* Improvement in the liquidity profile, by sustained improvement in
scale of operations and sustenance of operating margin leading to
higher cash accruals.
Incorporated in 2000, VSEL is engaged in providing software
solutions. It undertakes e-governance projects and provides banking
solutions for financial inclusion. The company is promoted by Mr.
Sunil Umrani and is based in Pune.
=========
J A P A N
=========
JAPAN: Lowers Spending View, Says Overall Conditions Are Severe
---------------------------------------------------------------
Reuters reports that Japan's government in December cut its view on
consumption for the first time in three months, and said overall
economic conditions were still severe due to the coronavirus
pandemic.
According to Reuters, authorities said the world's third-largest
economy is facing increased risks from a resurgence in COVID-19
cases at home and abroad, leading to an outlook downgrade though
those remained underpinned by hopes for an economic rebound.
"The Japanese economy remains in a severe situation due to the
novel coronavirus, but it is showing signs of picking up," the
government said in its December economic report.
But it also warned "full attention" should be given to further
risks from the coronavirus and its growing impact on socio-economic
activity, a government official said, Reuters relays.
Among key economic elements, the government slashed its assessment
of private consumption, which accounts for more than half of the
country's economy, for the first time since September, saying while
it was picking up as a whole, some sectors such as domestic tourism
were showing weakness, according to Reuters.
Reuters says Japan's Prime Minister Yoshihide Suga last week
abruptly halted a domestic subsidy programme over the year-end
after the country saw a resurgence in coronavirus infections.
Reuters relates that the official said overall tourism conditions
and the temporary halt of the campaign contributed to the lower
view on spending, but was also hopeful increased expenditure while
staying at home over the year-end such as on food and movie
streaming would boost consumption.
Authorities upgraded its view on exports and output, saying a
pickup was seen in volume terms especially in shipments of
electronic parts to China, though those of cars and transport
equipment were less strong than in the previous month.
The government also raised its assessment on bankruptcies and of
corporate profits, saying the rate of decline in profits was
becoming smaller, Reuters relays.
It kept its description of capital spending unchanged to say it
continued to decrease.
"Compared to 2018 and 2019, the drop (in capital spending) in the
fourth quarter will be quite steep, after firms' investment
appetite disappeared," the official, as cited by Reuters, said.
=================
S I N G A P O R E
=================
EAGLE HOSPITALITY: Won't Hold Further EGM on Keeping Reit Manager
-----------------------------------------------------------------
The Business Times reports that Eagle Hospitality Trust (EHT) will
not hold a further extraordinary general meeting (EGM) to vote on a
rights issue and a proposal to retain or reappoint the current
manager of Eagle Hospitality Reit (EH-Reit).
This is because the Monetary Authority of Singapore (MAS) has
rejected the appeal against its directive to DBS Trustee to remove
Eagle Hospitality Reit Management and appoint a new manager for the
Reit within a month from Nov. 30, BT relates.
As a result, the Reit manager considers there to be no legitimate
basis for the proposed EGM and the resolutions proposed to be voted
on, it said in a bourse filing on Dec. 23, BT relays.
According to the report, the further EGM had been requested by
entities controlled by EHT's former non-executive chairman Howard
Wu and former non-executive deputy chairman Taylor Woods, who said
they wanted to offer EHT security-holders an alternative to DBS
Trustee's plan for the trust's revival.
EHT will proceed with its scheduled EGM on Dec. 30 as planned, and
no additional resolutions will be tabled besides the ones set out
in the circular despatched to stapled security-holders, the report
relays.
EH-Reit and Eagle Hospitality Business Trust together constitute
EHT. Trading in EHT's stapled securities have been voluntarily
suspended since March 24 this year, BT notes.
About Eagle Hospitality
Eagle Hospitality Trust -- https://eagleht.com/ -- is a hospitality
stapled group comprising Eagle Hospitality Real Estate Investment
Trust (Eagle H-REIT) and Eagle Hospitality Business Trust (Eagle
H-BT). Eagle HT has a well-diversified portfolio of primarily
freehold, internationally branded hotels, across 11 major U.S.
metropolitan statistical areas.
As reported in the Troubled Company Reporter-Asia Pacific on Aug.
31, 2020, independent auditors KPMG have issued a disclaimer of
opinion in respect of the financial statements of EHT, which
released the independent auditors' report on Aug. 28. The auditors
had been tasked to audit the financial statements of EH-BT, EH-Reit
and its subsidiaries, and of EHT. The audit covered their
respective financial positions as at Dec. 31, 2019, and their fund
movements from April 11 till that date. In the report dated Aug.
14, the auditors said that they "have not been able to obtain
sufficient appropriate audit evidence to provide a basis for an
audit opinion on these financial statements".
"Accordingly, we do not express an opinion on the accompanying
financial statements of EH-BT and consolidated financial statements
of EH-Reit Group and EHT."
SWIBER HOLDINGS: Judicial Management Extended to Jan. 14
--------------------------------------------------------
The Business Times reports that the judicial management period for
Swiber Holdings and its subsidiary Swiber Offshore Construction was
extended to Jan. 14, 2021, at a hearing on Dec. 23.
Another hearing will be held on Jan. 14 to further determine the
extension of the judicial management periods until March 31, 2021,
Swiber's board and judicial managers said in a joint bourse filing,
BT relays.
Trading in Swiber shares has been suspended since 2016, the report
notes.
Swiber Holdings Limited (SGX:BGK) -- http://www.swiber.com/-- is a
Singapore-based investment holding company. The Company, through
its subsidiaries, is engaged in offshore marine engineering; vessel
owning and chartering, and provision of corporate services. The
Company is an integrated offshore construction and support services
provider for shallow water oil and gas field development. It offers
a range of engineering, procurement, installation and construction
(EPIC) services, complemented by its in-house marine support and
engineering capabilities, to support the offshore field development
and production activities of its clientele base across the Asia
Pacific, Middle East, Latin America and West Africa regions. It
operates approximately 10 construction vessels. The Company's
subsidiaries include Swiber Offshore Construction Pte. Ltd., Swiber
Offshore Marine Pte. Ltd., Swiber Corporate Pte. Ltd., Resolute
Offshore Pte. Ltd. and Swiber Capital Pte. Ltd.
Swiber had $1.43 billion of liabilities and $1.99 billion of assets
at March 2016, as per the company's published accounts.
Swiber Holdings shocked the business world when it filed for
liquidation in July 2016 as several of its directors resigned. Only
a few days after the intent to liquidate, Swiber changed course and
applied for judicial management. Bob Yap Cheng Ghee, Tay Puay
Cheng and Ong Pang Thye of KPMG Services Pte Ltd. were appointed as
joint and several interim judicial managers of Swiber Holdings
Limited and Swiber Offshore Construction.
In May 2019, Swiber yet again escaped another liquidation scenario
when its creditors voted in favor of a restructuring proposal that
contemplated an equity investment from Seaspan Corporation. The
plan included a proposed investment from Seaspan of up to $200
million. That Investment Agreement has been terminated as of
January 2020.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2020. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***