Kathmandu. Infomerics Nepal has placed 21 companies on the watch list for 21 companies affected by the destruction and political unrest during the Gen G movement. This o
According to Infomerics, non-life insurers, from educational institutions to star hotels, credit ratings and issue ratings watch with negative impact have been on the watch list.
Global College of Technology Pvt. Ltd., Global College of Technology Pvt. Ltd., and Jagadamba Hospitality, which is owned by Nepal Life Insurance, have been listed as the most sensitive companies. The educational institutions and hotels run by the three institutions have been shut down following the arson. The damage assessment has not been completed yet. It is also uncertain when the reconstruction will be completed.
The Hilton Hotel operated by Jagdamba Hospitality, which has a credit rating of Rs 5.30 billion for bank loan facility, is not in a position to resume its operation immediately after the fire broke out in the building of the Hilton Hotel in Naxal. The main building of Global College, run by Professional Educators in central Baneshwor, was also destroyed after it was set on fire.
Neco Insurance, Prabhu Insurance, Nepal Insurance, and Trust Micro Insurance have also been put on the watch list. All the four insurers have been put on the watch list as they are liable to pay the claim for the damage caused during the agitation.
The strike has affected the tourism sector due to the decline in tourist arrivals, which has also affected the helicopter service company. Air Dynasty and Manang Air Pvt Ltd have also been put on the watch list, according to Infomerics Nepal.
A total of 12 companies involved in hotel business have been included in the watch list following the cancellation of their visits by foreign tourists following the vandalism, arson, destruction of the agitation and political unrest.
Due to the impact on the tourism sector, Hotel Forest Inn and Mountain Glory Hotel, which are invested by Asian Life, have also been on the watch list. Both the hotels had received issuing ratings from Infomerics Nepal for the initial share issuance. Similarly, The Massif Hotel Pvt. Ltd., Tayo Eco Resort, Siddhartha International Hotel, Munal & Mayur Wellness Retreat Hotel Pvt. Ltd., Hotel Lhasa International Pvt. Ltd., Manigram Vishram Vatika Pvt. Ltd., Swarnim Hotel Ltd, The Metropolitan Hotel Ltd, Bhairahawa Garden Resort Pvt. Ltd., Thamel Plaza Hotel and Suites Ltd. have also been on the list of the companies that have been rated for bank loan.
Companies on the watchlist are at greater risk than ever before in terms of meeting their financial obligations within a predetermined timeframe. Apart from this, banks and financial institutions are also likely to ask for additional security for loans, reduce the loan limit or tighten the loan to recover the principal.
