/raid1/www/Hosts/bankrupt/TCRAP_Public/211112.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, November 12, 2021, Vol. 24, No. 221
Headlines
A U S T R A L I A
DESIGN ENVIRO: First Creditors' Meeting Set for Nov. 23
THINK TANK 2021-2: S&P Assigns Prelim B (sf) Rating to Cl. F Notes
URBAN PROPERTY: First Creditors' Meeting Set for Nov. 18
VRWA PTY: First Creditors' Meeting Set for Nov. 19
C H I N A
AGILE GROUP: S&P Downgrades LT ICR to 'BB-' on Weaker Sales
CHINA EVERGRANDE: DMSA Prepares Bankruptcy Proceedings v. Firm
KAISA GROUP: S&P Downgrades ICR to 'CCC-' on Depleted Liquidity
SUNAC CHINA: Fitch Affirms 'BB' LT FC IDR, Alters Outlook to Stable
TIMES CHINA: Fitch Affirms 'BB-' LT FC IDR, Alters Outlook to Neg.
H O N G K O N G
SNOW LAKE: To Liquidate One of Two Main Funds After Executives Quit
SPI ENERGY: Posts $14.9 Million Net Loss for H1 2021
SPI ENERGY: To Relocate Corporate HQs to Santa Clara, Calif.
I N D I A
AMAR UNIVERSAL: CRISIL Lowers Rating on INR7.8cr Cash Loan to B
ARK INDUSTRIES: Insolvency Resolution Process Case Summary
AVATAR SOLAR: CRISIL Withdraws B Rating on INR24cr Term Loan
BHARGAB ENGINEERING: CRISIL Moves B+ Ratings to Not Cooperating
CLEAR CHANNEL: Insolvency Resolution Process Case Summary
COIMBATORE JEWELLERS: CRISIL Keeps B+ Ratings in Not Cooperating
DRISHTI INDIA: Insolvency Resolution Process Case Summary
ELECTRA GLOBAL: CRISIL Keeps D Debt Ratings in Not Cooperating
FOREST PRESS: CRISIL Keeps D Debt Ratings in Not Cooperating
GPR RESOURCES PRIVATE: Insolvency Resolution Process Case Summary
JUPITAR SPUN: Insolvency Resolution Process Case Summary
KARUNA DISTRIBUTORS: Insolvency Resolution Process Case Summary
META ARCH PRIVATE: Insolvency Resolution Process Case Summary
MONO STEEL: CRISIL Lowers Rating on INR13cr Cash Loan to B
NEW ANIKET: CRISIL Lowers Rating on INR5cr Term Loan to B
NEW STONE: CRISIL Lowers Rating on INR5cr Cash Loan to C
NIRMAAN RMBS: CRISIL Hikes Rating on INR58.3cr PTCs to B-(SO)
PAMI METALS: Insolvency Resolution Process Case Summary
PANDIT AUTOMOBILES: CRISIL Keeps B Ratings in Not Cooperating
PARDES DEHYDRATION: CRISIL Keeps B+ Ratings in Not Cooperating
POETS LOVERS: Insolvency Resolution Process Case Summary
R. G. INDUSTRIES: CRISIL Keeps B Debt Ratings in Not Cooperating
RADHIKA COTEX: CRISIL Keeps B Debt Ratings in Not Cooperating
SAKTHI AMMA HEALTH: CRISIL Withdraws B+ Rating on INR10cr Loans
SAKTHI AMMA: CRISIL Withdraws B+ Rating on INR20cr Loans
SALEM AUTOMECH: CRISIL Keeps B+ Debt Ratings in Not Cooperating
SAMARTH DAIRY: CRISIL Keeps B+ Debt Ratings in Not Cooperating
SANMAAN AGRO: CRISIL Keeps B Debt Ratings in Not Cooperating
SARVOTTAM ROLLING: CRISIL Keeps B Ratings in Not Cooperating
SET SANAYI: Insolvency Resolution Process Case Summary
SHAILA CLUBS: Insolvency Resolution Process Case Summary
SHARP RENEWAL: CRISIL Moves B Debt Ratings to Not Cooperating
SHREEPATI BUILD INFRA: Insolvency Resolution Process Case Summary
SREI GROUP: Expects Delay in Q2 Results on Insolvency Order
SUDHARSANAM HOSPITAL: CRISIL Keeps B+ Ratings in Not Cooperating
SURIYA SPINNING: CRISIL Withdraws B Rating on INR4.50cr Loan
SWASTIK ENTERPRISES: CRISIL Keeps B- Ratings in Not Cooperating
SWEDE SANITARY: CRISIL Keeps B Debt Ratings in Not Cooperating
TULSUN RESOURCES: CRISIL Keeps B Debt Ratings in Not Cooperating
VALENS MOLECULES: CRISIL Lowers Rating on INR3cr Cash Loan to B
WALFS INFRA: CRISIL Lowers Rating on INR95cr Loans to C
ZOMATO LTD: Net Loss Widens to INR434.9cr in Qtr Ended Sept. 30
M A L A Y S I A
SAPURA ENERGY: Debt Woes Grow as Company Post MYR1.52BB Loss
SERBA DINAMIK: Misses Coupon Payment for US$300 Million Sukuk
N E W Z E A L A N D
ALREZ LIMITED: Creditors' Proofs of Debt Due on Dec. 8
EGMONT LOGGING: Court to Hear Wind-Up Petition on Nov. 19
MOLYNEUX CHILLED: Court to Hear Wind-Up Petition on Nov. 19
MOONEY FARMS: Creditors' Proofs of Debt Due Dec. 6
PENRICH CAPITAL: Court Hearing Explores Extent of Losses
RALEIGH BULK: Court to Hear Wind-Up Petition on Nov. 19
W. & E.A. COLE: Creditors' Proofs of Debt Due Dec. 8
S I N G A P O R E
CDL HOSPITALITY: Fitch Affirms 'BB+' LT IDR, Outlook Stable
XIHE CAPITAL: Creditors' Meeting Slated for Nov. 19
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A U S T R A L I A
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DESIGN ENVIRO: First Creditors' Meeting Set for Nov. 23
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A first meeting of the creditors in the proceedings of Design
Enviro Pty Ltd (ATF The Ryan Family Trust) trading as Shutterflex,
will be held on Nov. 23, 2021, at 10:30 a.m. via virtual meeting.
John Richard Park and Kelly-Anne Lavina Trenfield of FTI Consulting
were appointed as administrators of Design Enviro on Nov. 11,
2021.
THINK TANK 2021-2: S&P Assigns Prelim B (sf) Rating to Cl. F Notes
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S&P Global Ratings assigned its preliminary ratings to seven of the
nine classes of small-ticket commercial mortgage-backed, floating
rate, pass-through notes to be issued by BNY Trust Co. of Australia
Ltd. as trustee of Think Tank Commercial Series 2021-2 Trust.
Think Tank Commercial Series 2021-2 Trust is a securitization of
loans to commercial borrowers, secured by first-registered
mortgages over Australian commercial or residential properties
originated by Think Tank Group Pty Ltd. (Think Tank).
The preliminary ratings reflect:
-- S&P’s view of the credit risk of the underlying collateral
portfolio, including the fact that this is a closed portfolio,
which means no further loans will be assigned to the trust after
the closing date.
-- S&P's views that the credit support is sufficient to withstand
the stresses it applies. This credit support comprises note
subordination for each class of rated note.
-- That the transaction's cash flows can meet timely payment of
interest and ultimate payment of principal to the noteholders under
the rating stresses. Key factors are the level of subordination
provided, the condition that a minimum margin will be maintained on
the assets, an amortizing liquidity facility sized at 3.0% of the
outstanding balance of the rated notes, and the principal draw
function.
-- The extraordinary expense reserve of A$250,000, funded from day
one by Think Tank, available to meet extraordinary expenses. The
reserve will be topped up via excess spread if drawn.
-- The legal structure of the trust, which has been established as
a special-purpose entity and meets S&P's criteria for insolvency
remoteness.
-- As of Sept. 13, 2021, there are no borrowers in the pool under
COVID-19-related hardship arrangements.
Preliminary Ratings Assigned
Think Tank Commercial Series 2021-2 Trust
Class A1, A$300.00 million: AAA (sf)
Class A2, A$83.00 million: AAA (sf)
Class B, A$32.50 million: AA (sf)
Class C, A$32.50 million: A (sf)
Class D, A$22.50 million: BBB (sf)
Class E, A$12.00 million: BB (sf)
Class F, A$8.50 million: B (sf)
Class G, A$4.00 million: Not rated
Class H, A$5.00 million: Not rated
URBAN PROPERTY: First Creditors' Meeting Set for Nov. 18
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Urban
Property Melbourne Pty Ltd will be held on Nov. 18, 2021, at 11:00
a.m. via virtual meeting technology.
Bruno Anthony Secatore and Glenn Spooner of Cor Cordis were
appointed as administrators of Urban Property on Nov. 8, 2021.
VRWA PTY: First Creditors' Meeting Set for Nov. 19
--------------------------------------------------
A first meeting of the creditors in the proceedings of VRWA Pty Ltd
and Avid Water Pty Ltd will be held on Nov. 19, 2021, at 11:00 a.m.
via virtual meeting technology.
Matthew Woods and Clint Joseph of KPMG were appointed as
administrators of VRWA Pty on Nov. 9, 2021.
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C H I N A
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AGILE GROUP: S&P Downgrades LT ICR to 'BB-' on Weaker Sales
-----------------------------------------------------------
On Nov. 10, 2021, S&P Global Ratings lowered its long-term issuer
credit rating on China-based property developer Agile Group
Holdings Ltd. to 'BB-' from 'BB' and long-term issue rating on the
senior unsecured notes the company guarantees to 'B+' from 'BB-'.
Agile's weakened access to offshore capital markets will undermine
its liquidity.
S&P believes weaker market confidence in Agile and the property
developer sector will limit the company's access to offshore
capital markets. In its view, the company will need to rely on
internal cash flow and onshore bank loans to meet its debt
maturities.
The company has sizable short-term debt of Chinese renminbi (RMB)
39.5 billion as of end June 2021, covered by only RMB46.5 billion
in unrestricted cash. After repaying a RMB3 billion panda bond in
October, Agile has about RMB12.8 billion in bullet maturities until
the end of 2022, including RMB8.3 billion equivalent in U.S. dollar
notes.
S&P said, "While the company still has access to offshore banks,
this will be mainly for refinancing, in our view. Furthermore, we
expect the amount of Agile's offshore bank loans to decline as
banks tighten their stance on approving offshore loans for
developers.
"By our estimates, the company will generate operating cash flow
(after interest expenses) of RMB21 billion to RMB23 billion over
the next 12 months. At the same time, we expect Agile will conduct
minimal land acquisitions. This will help the company to address
its near-term maturities, in our view."
That said, the company's relatively weak disclosure and
transparency standards present risks around its other potential
maturities and contingent liabilities. The company has been
reported to have provided a guarantee to US$425 million in private
bonds for two third parties, of which US$175 million matured in the
first half of 2021 and another US$250 million will mature in
November.
Weaker market conditions will challenge Agile's ability to generate
cash. S&P estimates the company's unrestricted cash has fallen
since the end of June 2021 due to weakening sales, tightening
mortgages, and repayment of debt maturities via internal resources.
In the first nine months of 2021, the company achieved RMB102
billion in contracted sales; a weak third quarter saw only about
RMB26 billion, compared with RMB40 billion and RMB36 billion in the
first and second quarters, respectively.
S&P said, "We estimate sales conditions will remain challenging in
the current market and expect the company to achieve RMB135 billion
to RMB140 billion in contracted sales in 2021 and RMB120 billion to
RMB130 billion in 2022, down from RMB138 billion in 2020. Cash
collection should remain at about 79%-81% in 2021 and 2022, which
is flattish against the first half but lower than 88% in 2020.
"Agile could tap its rich asset base to raise funds. We believe
Agile could monetize some of its assets to boost liquidity. The
company has a sizable land bank of 53 million square meters, and
access to various urban redevelopment and township projects. In
addition, the company has multiple business lines, including
property management, environmental protection, and construction.
"We estimate the company will generate RMB5 billion to RMB6 billion
in cash in 2021 and RMB10 billion to RMB11 billion in 2022 through
asset sales. Agile also has assets offshore including its Hong Kong
property development projects and listed subsidiary shares, which
we estimate to be worth RMB17 billion to RMB20 billion."
Agile's leverage will rise despite a reduction in debt. This is
driven by slower sales growth, and margin contraction following its
actions to boost sales and cash collection through offering
discounts. S&P said, "By our estimate, Agile's revenue will grow by
8%-13% in 2021 and reduce by 0%-5% in 2022. Gross margins will drop
to 26%-27% in 2021 and further to 24.5%-25.5% in 2022, from 31% in
2020. As such, we project Agile's leverage to rise to about 5x-5.2x
in 2021 and 2022, against 4.9x in 2020."
S&P said, "The negative outlook on Agile reflects our view that the
company's liquidity could further deteriorate due to
weaker-than-expected cash generation from operations and asset
sales, and weakening funding access. Also, the company's leverage
could rise due to margin compression.
"We could downgrade Agile if the company's liquidity and cash
position weakens from the current level due to cash depletion. This
could arise from weaker-than-expected contracted sales and cash
collection, or failure to progress asset sales and funding plans.
"We may also lower the rating if Agile's debt to EBITDA fails to
stay at about 5x. This could occur due to weaker-than-expected
revenue delivery and margins, and amount of debt reduction."
Moreover, we may lower the rating if the company's income diversity
from non-property development falls as a result of sizable assets
sales.
S&P said, "We could revise the outlook to stable if Agile can
significantly improve its funding access and cash position, such
that its ability to weather the industry down cycle and address its
repayment pressure increases. A stable outlook would also be
predicated on the company improving its debt-to-EBITDA ratio to
about 5x and maintaining its income diversity from non-property
development."
CHINA EVERGRANDE: DMSA Prepares Bankruptcy Proceedings v. Firm
--------------------------------------------------------------
China Evergrande Group on Nov. 10 again defaulted on interest
payments to international investors. "DMSA itself is invested in
these bonds and has not received any interest payments until
today's end of the grace period. Now DMSA is preparing bankruptcy
proceedings against Evergrande and calls on all bond investors to
join it," DMSA said in a press statement.
China Evergrande Group, the second largest real estate developer in
China, defaulted on interest payments on two bonds back in
September, with the 30-day grace period still ending in October.
However, shortly before the end of the grace period, the public was
misled by rumors about alleged interest payments. The international
media also took the rumors for granted. Only the DMSA - Deutsche
Marktscreening Agentur (German Market Screening Agency) already
recognized the default at that time and proved in a study that the
bankruptcy of Evergrande, the world's most indebted corporation,
could ultimately lead to a "Great Reset", i.e. the final meltdown
of the global financial system.
"But while the international financial market has so far met the
financial turmoil surrounding the teetering giant Evergrande with a
remarkable basic confidence - one can also say: with remarkable
naivety - the U.S. central bank Fed confirmed our view yesterday,"
says DMSA senior analyst Dr. Marco Metzler. "In its latest
stability report, it explicitly pointed out the dangers that a
collapse of Evergrande could have for the global financial
system."
In order to be able to file for bankruptcy against the company as a
creditor, DMSA itself invested in Evergrande bonds, whose grace
period expired today (Nov. 10, 2021). In total, Evergrande would
have had to pay $148.13 million in interest on three bonds no later
than today. "But so far we have not received any interest on our
bonds," explains Metzler. He adds, "With banks in Hong Kong closing
today, it's certain that these bonds have defaulted."
Particularly problematic for Evergrande: all 23 outstanding bonds
have a cross-default clause. "This means that if a single one of
these bonds defaults, all 23 outstanding bonds automatically have
'default' status" DMSA senior analyst Metzler knows. However, this
does not automatically result in a bankruptcy for Evergrande Group.
To determine bankruptcy, a insolvency petition must be filed with
the court. This can be done either by the company itself or by one
or more of the company's creditors. And this is precisely what is
now planned.
Metzler: "DMSA is preparing bankruptcy proceedings against
Evergrande. We are already holding talks with other investors in
this regard. We would be pleased if other investors were to join
our action group."
For the DMSA expert, it is clear: "As soon as a court opens
insolvency proceedings, Evergrande will also be officially bankrupt
- and that is only a matter of days."
About China Evergrande
China Evergrande Group is an integrated residential property
developer. The Company, through its subsidiaries, operates in
property development, investment, management, finance, internet,
health, culture, and tourism markets.
As reported in the Troubled Company Reporter-Asia Pacific on Sept.
30, 2021, Fitch Ratings has downgraded to 'C' from 'CC', the
Long-Term Foreign-Currency Issuer Default Ratings (IDRs) of Chinese
homebuilder, China Evergrande Group, and its subsidiaries, Hengda
Real Estate Group Co., Ltd and Tianji Holding Limited. Fitch has
affirmed the senior unsecured ratings of Evergrande and Tianji at
'C', with a Recovery Rating of 'RR6', as well as the
Tianji-guaranteed senior unsecured notes issued by Scenery Journey
Limited at 'C', with a Recovery Rating of 'RR6'.
S&P Global Ratings' rating for China Evergrande Group and its
subsidiaries Hengda Real Estate Group Co. Ltd. and Tianji Holding
Ltd. was lowered to 'CC' from 'CCC' last September 15, 2021. S&P
also lowered its long-term issue rating on the U.S. dollar notes
issued by Evergrande and guaranteed by Tianji to 'C' from 'CCC-'.
KAISA GROUP: S&P Downgrades ICR to 'CCC-' on Depleted Liquidity
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On Nov. 11, 2021, S&P lowered its long-term issuer credit rating on
Kaisa Group Holdings Ltd. to 'CCC-' from 'CCC+'. The negative
outlook reflects Kaisa's very high nonpayment risk and high
probability of debt restructuring.
S&P subsequently withdrew its 'CCC-' long-term issuer credit rating
on Kaisa at the issuer's request.
S&P downgraded Kaisa because the company's liquidity appears to be
depleted. Therefore, it believes nonpayment risk is high and could
ultimately lead to debt restructuring. A default scenario is
inevitable within the next six months.
Kaisa's liquidity is worsening substantially, in S&P's view. This
is manifested by one of its subsidiaries' failure to meet its
guarantee obligation on certain wealth management products.
According to media reports, that amount could be more than Chinese
renminbi (RMB) 12 billion. This is about 48% of Kaisa's reported
short-term debt maturities as of June 30, 2021.
S&P said, "Our view is that failure of the subsidiary (Kaisa Group
(Shenzhen) Co. Ltd.) to fulfil its guarantee does not directly
constitute a default for Kaisa, given our understanding that there
is no guarantee between the two.
"However, such a situation, along with the continued trading
suspension for its stock on the Hong Kong Exchange and the
company's substantial interest-bearing debt maturities over the
next six to 12 months, leads us to believe Kaisa's default
scenario, which could include debt restructuring, is inevitable."
SUNAC CHINA: Fitch Affirms 'BB' LT FC IDR, Alters Outlook to Stable
-------------------------------------------------------------------
Fitch Ratings has revised the Outlook on homebuilder Sunac China
Holdings Limited to Stable, from Positive, and has affirmed its
Long-Term Foreign-Currency Issuer Default Rating (IDR), senior
unsecured rating and the ratings on its outstanding senior notes at
'BB'. Fitch has removed all the ratings from Under Criteria
Observation (UCO), on which they were placed on 20 October 2021,
following the publication of its updated Corporate Rating
Criteria.
The Outlook revision is driven by the company's declining
contracted sales and sales collection since August 2021, in line
with the overall industry, which may weaken its liquidity in the
short term. Nonetheless, Sunac faces less refinancing pressure than
some homebuilders in the 'BB' rating category, and its business and
financial profile is comparable with that of 'BB' peers.
KEY RATING DRIVERS
Declining Contracted Sales: Fitch expects Sunac's contracted sales
to drop by 8% in 2022 amid weakening property sentiment across
China. Sunac registered a 28% yoy drop in total contracted sales in
October 2021, after a 32% fall in September and 30% fall in August.
This is partly attributable to the high base from 2020, but
softening contracted sales coupled with tight pre-sale funding
requirements are likely to affect property developers' sales
collection and liquidity, including at Sunac.
Fitch expects attributable contracted sales to remain flat in 2021,
despite the high sales growth in 1H21, and for sales collection,
which excludes uncollected sales from previous years, to reduce to
82% in 2021-2022, from 90% in 2020.
Liquidity Risk Manageable: Fitch believes Sunac will be able to
cover the CNY3.5 billion of domestic bonds puttable in January 2022
using its cash balance, and the CNY4 billion that is puttable in
April 2022 with net operating cash inflow in 1Q22. Its internal
cash generation remains robust, which should alleviate near-term
repayment pressure.
Sunac has lower imminent offshore financing pressure than 'BB'
category peers. Its next US-dollar bond due is in June 2022, with
USD600 million outstanding. This compares with CIFI Holdings
(Group) Co. Ltd.'s (BB/Stable) USD585 million due in January 2022
and is less than KWG Group Holdings Limited's (BB-/Stable) USD1.8
billion.
Investors' Confidence Weakening: Fitch believes onshore and
offshore investor confidence may weaken and limit Sunac's
refinancing capability. Sunac's bond prices fell after news outlets
in mid-September 2021 reported on the contents of an internal
document discussing the adverse property sales and mortgage
approval conditions in Shaoxing, a city within the Yangtze River
Delta. The bond prices have remained volatile, in line with the
bonds of other high-yield developers.
Falling NBFI Loans: Sunac's proportion of non-bank financial
institution loans (NBFI) fell in 2020 and 1H21, alleviating
refinancing pressure, but remained high compared with that of
peers. Sunac's reliance on NBFI financing stems from its
significant land acquisitions in higher-tier cities, but the
proportion of NBFI loans should continue declining along with
slowing land purchases amid the poor property market sentiment.
Leverage Steady: Fitch expects leverage to remain stable in 2021,
after falling to 42%-50% in 2020-1H21, from 61% in 2019. Fitch's
leverage calculation assigns a 40% cash credit to Sunac's listed
equity investments. Sunac deleveraged in 2020 by significantly
reducing its land acquisitions and investments, while maintaining
attributable contracted sales. Fitch expects Sunac to limit land
acquisitions for the remainder of the year.
Stable Margin: Fitch expects a slight drop in Sunac's EBITDA margin
after land appreciation tax (LAT), in line with the industry, but
to remain at around 12%-13% in the medium term. Sunac's EBITDA
margin after LAT was around 12% in 2020-1H21 and its return
efficiency stayed at 9%-10%, in line with that of 'BB' rated
peers.
DERIVATION SUMMARY
Sunac's attributable sales scale and geographical diversification
are comparable with that of large investment-grade homebuilders,
such as China Vanke Co., Ltd. (BBB+/Stable) and Poly Developments
and Holdings Group Co., Ltd. (BBB+/Stable). It is also larger than
that of Longfor Group Holdings Limited (BBB/Positive) and Shimao
Group Holdings Limited (BBB-/Stable). However, Sunac's scale is
smaller than that of Country Garden Holdings Company Limited
(BBB-/Stable), which has a higher concentration in lower-tier
cities, while the majority of Sunac's land bank is situated in tier
one and two cities.
Sunac's scale is significantly larger than that of Seazen Group
Limited (SGL, BB+/Stable) and its subsidiary, Seazen Holdings Co.,
Ltd. (SHCL, BB+/Stable), while Seazen has higher recurring
EBITDA/interest from its portfolio of shopping malls.
Sunac's leverage is higher than that of some 'BB+' rated issuers,
such as Sino-Ocean Group Holding Limited (BBB-/Stable; Standalone
Credit Profile: bb+), SGL and SHCL. Sunac's leverage is similar to
that of 'BB' peers, including CIFI and Logan Group Company Limited
(BB/Positive). Sunac's higher proportion of NBFI loans in its
balance sheet also contributes to its higher funding costs.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Flat growth in attributable sales in 2021 versus 2020 then
falling by 8% yoy in 2022;
-- Contracted sales average selling price of around
CNY14,000/square metre, similar to 2020;
-- Gradual decrease in land-bank life;
-- Capex on investment properties and property, plant and
equipment of CNY12.5 billion a year;
-- EBITDA margin after LAT to fall to 11% in 2021-2022.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Leverage - measured by net debt + guarantees/net development
property assets + joint ventures + contingent claims –
staying
below 40% for a sustained period (1H21: 42%);
-- Decreased reliance on NBFI financing.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Leverage of above 50% for a sustained period;
-- Increasing difficulty of refinancing onshore and offshore
debt.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
Manageable Liquidity: Available cash/total short-term debt was
around 1.1x in 1H21, similar to 2020. Sunac had an available cash
balance of CNY101 billion as of 1H21, sufficient to cover
short-term debt of CNY91 billion. However, tighter pre-sale funding
requirements for domestic developers may bring additional risk to
Sunac's liquidity at the holding company level. Fitch does not have
the breakdown of cash at the holding company level.
The company's non-controlling interests/net development property
assets ratio was a low 8% in 2020, compared with CIFI's 18% and
Logan's 16%. This suggests a lower risk of cash leakage to minority
shareholders than at other 'BB' rated developers.
ISSUER PROFILE
Sunac is a large-scale property developer in China with several
other segments, such as cultural tourism, commercial property and
property management. Sunac has been listed on the Hong Kong Stock
Exchange since 2010.
SUMMARY OF FINANCIAL ADJUSTMENTS
Fitch's calculation of net property assets used in the leverage
calculation includes: inventory, net deposits and prepayments for
projects, investment properties, property, plant and equipment
(land and buildings), land-use rights, investments in joint
ventures, net amounts due from joint ventures, and net amount due
from non-controlling interests, less contract deposits and deposits
received.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means 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.
TIMES CHINA: Fitch Affirms 'BB-' LT FC IDR, Alters Outlook to Neg.
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Fitch Ratings has revised the Outlook on Times China Holdings
Limited's Long-Term Foreign-Currency Issuer Default Rating (IDR) to
Negative from Stable, and affirmed the IDR at 'BB-'. Fitch has also
affirmed the Chinese homebuilder's senior unsecured rating at
'BB-'. Fitch has removed all the ratings from Under Criteria
Observation (UCO), on which they were placed on 20 October 2021,
following the publication of its updated Corporate Rating
Criteria.
The Negative Outlook reflects Fitch's concern that Times China has
high exposure to non-controlling interests (NCIs), and uncertainty
on whether Times China can control the NCI exposure and
deleverage.
KEY RATING DRIVERS
High NCIs: Times China's NCI/total equity ratio was 52% at end-1H21
and NCI net claims/net property assets was 35%, which was high
among Fitch-rated Chinese developers. Times China relies on capital
contributions from minority shareholders, mostly developers, to
finance expansion. This limits its need for debt funding, but
creates potential cash leakage.
Limited Refinancing Risk: Fitch believes that Times China's
refinancing risk is limited. The capital market maturity in the
next 24 months is well spread out and the liquidity position is
healthy, with unrestricted cash covering short-term debt by 2x as
of end-June 2021. However, Fitch sees some uncertainty in the
company's ability to deleverage and maintain a strong liquidity
profile in view of the slowdown in property demand, which may also
depend on the sales collection and is more difficult to predict.
Stable Leverage: Fitch expects leverage - measured by net debt/net
property assets - to remain around 45% in 2021, against around 47%
at end-June 2021. Fitch expects fewer land acquisitions in 2H21 and
2022, as the company expects to achieve operating cash flow
breakeven given limited funding access to the capital market. Fitch
has included the receivables, deposits and other prepayments
related to urban renewal projects (URP) in Fitch's inventory
calculation, in line with the treatment for other homebuilders with
significant URP business.
Evolving Implied Cash Collection: Times China's implied cash
collection - defined as the change in customer deposits plus
revenue booked during the year - fell to CNY35 billion in 2020,
from CNY42 billion in 2019. This was partly due to a reduced
consolidation ratio. Fitch expects the implied cash collection in
2021 to improve significantly, as the implied cash collection
recovered 94% yoy to CNY23 billion in 1H21. A low consolidation
ratio means it has a high proportion of joint-venture (JV) and
associate projects, while the financials of these projects are not
fully reflected in its consolidated financials.
High Return Efficiency: Times China's return efficiency of around
11% is higher than peers. Development-property projects converted
from URPs have a higher gross profit margin of above 40%, due
mainly to lower land costs relative to market prices. Fitch expects
Times China's newly acquired land bank will mainly come from URPs
in 2021, as the company has suspended land acquisitions from public
land auctions since July. Fitch expects the company's overall gross
margin can be sustained above the industry average of around 20% in
the medium term.
Limited Diversification and Scale: About 90% of Times China's land
bank is in the Greater Bay Area, which is less diversified than
most of the other 'BB' category peers. Times China's total
contracted sales increased by 7% yoy to CNY75.8 billion in 10M21,
supported by strong demand in the Greater Bay Area. Times China's
annual attributable sales scale of around CNY60 billion-70 billion
is smaller compared with 'BB' peers' more than CNY100 billion in
2020.
DERIVATION SUMMARY
Times China has a similar attributable contracted sales scale to
that of KWG Group Holdings Limited (BB-/Stable, UCO), but Times
China's land bank is less diversified and mostly concentrated in
the Greater Bay Area. However, Times China has a stronger pipeline
in URPs and less reliant on public auctions in new land
acquisitions, leading to more sustainable profit margins.
Times China's leverage, as defined by net debt/net property assets,
of 47%, is slightly higher than KWG's 45%. Times China's return
efficiency of around 11% is higher than KWG's below 10%. However,
Times China's has higher NCI net claims/net property assets at 35%
compared with below 20% for KWG.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Total contracted sales at CNY85 billion-100 billion a year in
2021-2023 (2020: CNY100 billion);
-- Cash collected as a percentage of consolidated sales at 70%
75% in 2021-2023 (2020: 75%);
-- Land premium outflow of around 25%-30% of sale proceeds in
2021-2023 (1H21: 29%);
-- Overall EBITDA margin, after land appreciation tax, at 18%-19%
in 2021-2023 (2020: 18.6%).
RATING SENSITIVITIES
Factor that could, individually or collectively, lead to positive
rating action/upgrade:
-- The Outlook may be revised to Stable if the negative
sensitivities are not met.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Leverage, measured by net debt/net property assets, sustained
above 45%;
-- Significant increase in exposure to NCIs or JVs;
-- Deterioration in liquidity profile or funding access;
-- Significant decline in contracted sales or cash collection.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
Sufficient Liquidity: Times China had available cash of CNY22.2
billion, excluding restricted cash of CNY4.7 billion, as of
end-June 2021, against CNY11.7 billion in short-term debt. In July,
the company issued USD100 million tap of its existing 5.55% senior
notes due 2024. Fitch believes Times China will maintain sufficient
liquidity to fund development costs, land premium payments and debt
obligations because of the healthy maturity profile and flexible
land-acquisition strategy.
ISSUER PROFILE
Times China, established in 1999, focuses on residential projects
in Guangdong province. Its total land bank was 21.7 million square
metres at end-1H21. The company has also acquired or signed
preliminary agreements for about 160 URPs.
SUMMARY OF FINANCIAL ADJUSTMENTS
Fitch's calculation of net property assets at end-June 2021
includes: properties under development, prepayment for land, other
deposits or prepayments for URPs, investment in JV and associates,
investment properties, land and buildings, amount due from JV and
associates, restricted cash, less contract liabilities adjusted by
its gross profit margin, payables and amount due to JV and
associates. Fitch includes the guarantee to JV and associates and
related parties in net debt and net property assets.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means 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.
=================
H O N G K O N G
=================
SNOW LAKE: To Liquidate One of Two Main Funds After Executives Quit
-------------------------------------------------------------------
The Financial Times reports that Snow Lake Capital, a Hong
Kong-based hedge fund that bought up Chinese stocks during the wind
down of Archegos, is liquidating one of its two main funds after
the resignation of both of its portfolio managers.
The FT relates that Paul Kim and Yusuke Saito, who both previously
managed money at Louis Bacon's Moore Capital Management, have quit
the Asian investment manager after helping it launch its pan-Asia
strategy in 2018.
Their departures mean Snow Lake, which manages about $2 billion of
assets, will stop investing in Japan and Korea, two of its three
critical Asia markets. Instead it will retrench to its original
focus of investing in China, according to a person close to the
fund.
Snow Lake's China fund is down about 20 per cent this year, the
person said. However it was up 16 per cent in October and 7 per
cent this month. Investors in the Asia fund that is being
liquidated have been offered the ability to transfer to the China
fund, the person, as cited by the FT, added.
The performance of the Asia fund is not yet known, however
Citigroup's wealth investment unit told clients this week - prior
to the resignations - that it had placed the fund on a "watch" list
in October, according to a memo seen by the Financial Times.
The FT relates that two people who have worked closely with the
fund said that one of the triggers for the collapse appeared to
have been its large holdings in MGM China - a stock that has lost
just over 63 per cent of its value since its year high in
mid-March.
According to the people, in recent months the fund had been
increasingly desperate to offload some of its stake in the casino
company, which trades only relatively small volumes a day, the FT
relays. Snow Lake attempted to exert a form of activist pressure on
MGM Resorts International to sell 20 per cent of its China business
in January, as its fortunes have been battered by Covid-19 and
travel restrictions to Macau that have hit the sector hard.
Snow Lake was launched in 2009 by Sean Ma with backing from Zhang
Lei, the founder of Hillhouse Capital, one of China's most powerful
technology private equity investors.
Ma, who had previously worked at the Ziff Brothers family office,
quickly built a name for being among a small number of
China-focused hedge funds with a multiyear record of gains.
Snow Lake became well known in international hedge fund circles in
2019 after it was believed to have produced the anonymous short
seller report that exposed fake sales at Luckin Coffee, the Chinese
coffee chain. Snow Lake, whose name comes from a 1979 snowstorm in
Hangzhou's West Lake, has declined to comment on whether it
authored the report.
The FT adds that several people close to Snow Lake said it had
suffered this year after buying up positions in some Chinese
technology stocks during the liquidation of the holdings of
Archegos Capital in April.
SPI ENERGY: Posts $14.9 Million Net Loss for H1 2021
----------------------------------------------------
SPI Energy Co., Ltd. filed with the U.S. Securities and Exchange
Commission its Unaudited Condensed Consolidated Balance Sheet as of
June 30, 2021 and Unaudited Condensed Consolidated Statements of
Operations for the six-month period ended June 30, 2021.
SPI Energy reported a net loss attributable to shareholders of the
Company of $14.91 million on $79.44 million of net sales for the
six months ended June 30, 2021, compared to net income attributable
to shareholders of the company of $2.66 million on $56.36 million
of net sales for the six months ended June 30, 2020.
As of June 30, 2021, the Company had $238.19 million in total
assets, $187.35 million in total liabilities, and $50.84 million in
total equity.
A full-text copy of the Form 6-K is available for free at:
https://www.sec.gov/Archives/edgar/data/1210618/000168316821005274/spi_ex9901.htm
About SPI Energy Co.
SPI Energy Co., Ltd. (SPI) is a global renewable energy company and
provider of solar storage and electric vehicle (EV) solutions for
business, residential, government, logistics and utility customers
and investors. The Company provides a full spectrum of EPC
services to third-party project developers, as well as develops,
owns and operates solar projects that sell electricity to the grid
in multiple countries, including the U.S., the U.K., Greece, Japan
and Italy. The Company has its US headquarters in Santa Clara,
California and maintains global operations in Asia, Europe, North
America and Australia. SPI is also targeting strategic investment
opportunities in green industries such as battery storage and
charging stations, leveraging the Company's expertise and growing
base of cash flow from solar projects and funding development of
projects in agriculture and other markets with significant growth
potential.
SPE Energy reported a net loss attributable shareholders of $6.51
million in 2020, a net loss attributable to shareholders of $15.26
million in 2019, and a net loss attributable to shareholders of
$12.28 million in 2018. As of Dec. 31, 2020, the Company had
$217.03 million in total assets, $168.65 million in total
liabilities, and $48.38 million in total equity.
SPI ENERGY: To Relocate Corporate HQs to Santa Clara, Calif.
------------------------------------------------------------
SPI Energy Co., Ltd. plans to relocate its corporate headquarters
from Hong Kong to Santa Clara, California.
"After discussions amongst our board members, it was agreed that
relocating our corporate headquarters to Santa Clara would provide
the most advantages for our business as we continue to focus on
expanding our US solar operations and accelerating the growth of
our rapidly evolving EV division," stated Mr. Xiaofeng Denton Peng,
chairman & chief executive officer of SPI Energy. "California is a
world leader in renewable energy solutions. SPI was originally
founded in Roseville, California in 2006, and we are proud to now
officially call California home for our expanding global
operations."
Approximately 33% of California's electricity came from renewable
energy in 2019 and the state is targeting 50% renewable generation
by 2025. California state has also mandated an end to the sale of
gasoline-fueled cars by 2035.
About SPI Energy Co.
SPI Energy Co., Ltd. (SPI) is a global renewable energy company and
provider of solar storage and electric vehicle (EV) solutions for
business, residential, government, logistics and utility customers
and investors. The Company provides a full spectrum of EPC
services to third-party project developers, as well as develops,
owns and operates solar projects that sell electricity to the grid
in multiple countries, including the U.S., the U.K., Greece, Japan
and Italy. The Company has its US headquarters in Santa Clara,
California and maintains global operations in Asia, Europe, North
America and Australia. SPI is also targeting strategic investment
opportunities in green industries such as battery storage and
charging stations, leveraging the Company's expertise and growing
base of cash flow from solar projects and funding development of
projects in agriculture and other markets with significant growth
potential.
SPE Energy reported a net loss attributable shareholders of $6.51
million in 2020, a net loss attributable to shareholders of $15.26
million in 2019, and a net loss attributable to shareholders of
$12.28 million in 2018. As of Dec. 31, 2020, the Company had
$217.03 million in total assets, $168.65 million in total
liabilities, and $48.38 million in total equity.
=========
I N D I A
=========
AMAR UNIVERSAL: CRISIL Lowers Rating on INR7.8cr Cash Loan to B
---------------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of Amar
Universal Private Limited (AUPL) to 'CRISIL B/Stable Issuer Not
Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7.8 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING)
Proposed Working 2.2 CRISIL B/Stable (ISSUER NOT
Capital Facility COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING)
Term Loan 25.0 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with AUPL for
obtaining information through letters and emails dated August 19,
2021 and October 6, 2021 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
Ratings failed to receive any information on either the financial
performance or strategic intent of AUPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AUPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AUPL Revised to 'CRISIL B/Stable Issuer Not Cooperating' from
'CRISIL BB-/Stable Issuer Not Cooperating'.
Incorporated in 1991, Amar Universal Private Limited (AUPL) is in
the business of processing of flour, manufacturing of wire ropes
and leasing of cold storage and land facilities. The flour mill was
functional from June 2018 and the wire ropes project will be
functional from February 2019. The company is promoted by Mr.
Ramesh Panjri and is based out of Navi Mumbai, Maharashtra.
ARK INDUSTRIES: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Ark Industries Private Limited
Unit/office No. 205, 2nd Floor
Windfall Building
Andheri Kurla Road
J.B. Nagar, Andheri (E)
Mumbai 400059
Insolvency Commencement Date: September 23, 2021
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: March 22, 2022
Insolvency professional: Mr. Subhash Laxminarayan Nathuramka
Interim Resolution
Professional: Mr. Subhash Laxminarayan Nathuramka
B 602, Silver Sands
Building No. 11, Piramal Nagar
Goregaon Nagar, Road Goregaon
West Mumbai 400064
E-mail: snathuramka@gmail.com
- and -
273 Udyog Bhavan Sonawala Road
Goregoan East Mumbai 400063
E-mail: snathuramka@kipinsolvency.com
Last date for
submission of claims: November 15, 2021
AVATAR SOLAR: CRISIL Withdraws B Rating on INR24cr Term Loan
------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating of Avatar Solar Private Limited
(ASPL) to 'CRISIL B/Stable Issuer Not Cooperating'. CRISIL Ratings
has withdrawn its rating on bank facility of ASPL following a
request from the company and on receipt of a 'no dues certificate'
from the banker. Consequently, CRISIL Ratings is migrating the
ratings on bank facilities of ASPL from 'CRISIL B/Stable Issuer Not
Cooperating to 'CRISIL B/Stable'. The rating action is in line with
CRISIL Ratings' policy on withdrawal of bank loan ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 24 CRISIL B/Stable (Migrated from
'CRISIL B/Stable ISSUER NOT
COOPERATING; Rating Withdrawn)
ASPL was incorporated in 2012 and promoted by Mr. Falgun Dave and
Ms Ushaben Oza to set up a 5-MW photovoltaic solar farm in
Charanka, near Patan, Gujarat, under the Jawaharlal Nehru National
Solar Mission migration scheme. It has entered into a PPA with
GUVNL to supply solar power at Rs 9.28 per unit for 25 years.
BHARGAB ENGINEERING: CRISIL Moves B+ Ratings to Not Cooperating
---------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Bhargab Engineering Works (BEW) to 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Foreign Bill 2 CRISIL B+/Stable (ISSUER NOT
Discounting COOPERATING; Rating Migrated)
Packing Credit 6 CRISIL A4 (Issuer Not
Cooperating)
Proposed Fund- 1.84 CRISIL B+/Stable (ISSUER NOT
Based Bank Limits COOPERATING; Rating Migrated)
Term Loan 0.16 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with BEW for
obtaining information through letters and emails dated September
27, 2021 and October 16, 2021 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
Ratings failed to receive any information on either the financial
performance or strategic intent of BEW, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on BEW
is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the rating on
bank facilities of BEW to 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
BEW was formed in 1954, by the late Mr. Pranatosh Kumar Sen in
Kolkata. The firm is being managed as a partnership concern by his
sons, Mr. Sanjib Kumar Sen and Mr. Aritra Ranjan Sen. It
manufactures tea-blending and cleaning machinery at its unit in
Howrah, West Bengal.
CLEAR CHANNEL: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Clear Channel India Private Limited
1-B/A, Parekh Mahal
Veer Nariman Road
Churchgate
Mumbai 400020
Insolvency Commencement Date: October 28, 2021
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: April 26, 2022
(180 days from commencement)
Insolvency professional: Dhanshyam Patel
Interim Resolution
Professional: Dhanshyam Patel
322, Zest Business Spaces
M G Road, Ghatkopar East
Mumbai 400077
E-mail: dpatel@ckpatel.com
clearchannel@ckpatel.com
Last date for
submission of claims: November 15, 2021
COIMBATORE JEWELLERS: CRISIL Keeps B+ Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shri
Coimbatore Jewellers India Private Limited (SCJIPL) continue to be
'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 5.5 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 15 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Long Term
Bank Loan Facility 2.5 CRISIL B+/Stable (Issuer Not
Cooperating)
Term Loan 15 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SCJIPL for
obtaining information through letters and emails dated August 19,
2021 and October 06, 2021 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
Ratings failed to receive any information on either the financial
performance or strategic intent of SCJIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
SCJIPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of SCJIPL continues to be 'CRISIL B+/Stable/CRISIL A4
Issuer Not Cooperating'.
SCJIPL was set up by Mr. Ramanathan Sundaram as a proprietorship
firm in Salem, Tamil Nadu, in 1961. It was reconstituted as a
private limited company in March 2011. The company manufactures
gold, silver, and diamond jewellery, and caters to retail and
wholesale customers. The company also operates a 3-star hotel in
Salem.
DRISHTI INDIA: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Drishti India Limited
C-161, East of Kailash
New Delhi 110065
India
Insolvency Commencement Date: November 1, 2021
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: April 29, 2022
Insolvency professional: Ms. Priyanka Chouhan
Interim Resolution
Professional: Ms. Priyanka Chouhan
5, Commanders Colony
Panchyawala, Sirsi Road
Near Annpurna Dharam Kanta
Jaipur, Rajasthan 302034
E-mail: pc18lawyer@gmail.com
- and -
Resurgent Resolution Professionals LLP
(IPE)
905, 9th Floor, Tower C
Unitech Business Zone
The Close South
Sector-50, Gurugram
Haryana 122018
E-mail: drishti.cirp@gmail.com
Last date for
submission of claims: November 17, 2021
ELECTRA GLOBAL: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Electra
Global Resources Private Limited (EGRPL) continue to be 'CRISIL
D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.5 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 3.5 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 0.5 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with EGRPL for
obtaining information through letters and emails dated August 19,
2021 and October 06, 2021 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
Ratings failed to receive any information on either the financial
performance or strategic intent of EGRPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on EGRPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
EGRPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
EGRPL erstwhile known as Priti International Pvt Ltd was
incorporated in 1995 by Mr. Chetan Sanghvi and Mr. Bhaumik Sanghvi.
The company is engaged in trading of motorcycle batteries and lead.
The company had started with trading of lead in July 2015 whereas
trading of batteries started from September 2015.
FOREST PRESS: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Forest Press
Machineries Private Limited (FPMPL) continue to be 'CRISIL D/CRISIL
D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL D (Issuer Not
Cooperating)
Cash Term Loan 13 CRISIL D (Issuer Not
Cooperating)
Inland/Import 0.55 CRISIL D (Issuer Not
Letter of Credit Cooperating)
Proposed Long Term 1.45 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with FPMPL for
obtaining information through letters and emails dated August 19,
2021 and October 6, 2021 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
Ratings failed to receive any information on either the financial
performance or strategic intent of FPMPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on FPMPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
FPMPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
FPMPL was set up in 2015 in Bangalore. The company is engaged in
manufacture of machinery required to meet the demand of concrete
and building materials industry.
GPR RESOURCES PRIVATE: Insolvency Resolution Process Case Summary
-----------------------------------------------------------------
Debtor: GPR Resources Private Limited
No. 47, Whites Road
22 & 22B Ground Floor
Desabhandhu Plaza
Royapettai
Chennai TN 600014
Insolvency Commencement Date: November 1, 2021
Court: National Company Law Tribunal, Chennai Bench
Estimated date of closure of
insolvency resolution process: April 29, 2022
Insolvency professional: Seetha Thelagar
Interim Resolution
Professional: Seetha Thelagar
11-13, Muthumariamman Koil Street
Janaki Nagar Annexe
Valasaravakkam
Chennai 600087
E-mail: tseetha2002@gmail.com
irpgprresources@gmail.com
Last date for
submission of claims: November 15, 2021
JUPITAR SPUN: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Jupitar Spun Pipes & Casting Private Limited
KB-21, 3rd Floor
Salt Lake City, Kolkata
West Bengal 700098
India
Insolvency Commencement Date: November 3, 2021
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: May 2, 2022
Insolvency professional: Mr. Binay Kumar Sighania
Interim Resolution
Professional: Mr. Binay Kumar Sighania
BKS & Co, Diamond Heritage
16 Strand Road
Unit 519, 5th Floor
Kolkata, West Bengal 700001
E-mail: binay1@yahoo.com
- and -
AAA Insolvency Professionals LLP
Mousumi Co. Op. Housing Society
15B, Ballygunge Circular Road
Kolkata 700019
E-mail: jupiterspun@aaainsolvency.com
Last date for
submission of claims: November 17, 2021
KARUNA DISTRIBUTORS: Insolvency Resolution Process Case Summary
---------------------------------------------------------------
Debtor: Karuna Distributors Private Limited
Registered address:
7, Prafulla Sarkar Street
3rd Floor, Room No. 4
Kolkata 700072
West Bengal
Principal Business Place:
Flat No. F-33, Hariom Park
Near Jaiambe Nagar, Thaltej
Ahmedabad 380054
Gujarat
A-4 Basni Mandi Bhagat Ki Koti
Jodhpur, Rajasthan
Insolvency Commencement Date: November 3, 2021
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: May 1, 2022
Insolvency professional: Mr. Jitendra Lohia
Interim Resolution
Professional: Mr. Jitendra Lohia
Klass Insolvency Resolution
Professionals Pvt. Ltd.
2/7 Sarat Bose Road, 2nd Floor
Vasundhara Building
Near Hindustan Club
Kolkata 700020
West Bengal
E-mail: cirp.karuna@gmail.com
jitulohia@knjainco.com
Last date for
submission of claims: November 17, 2021
META ARCH PRIVATE: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Meta Arch Private Limited
110, Pride Silicon Plaza
S.B. Road, Model Colony
Pune MH 411016
Insolvency Commencement Date: October 8, 2021
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: April 6, 2022
Insolvency professional: Nitin Om Kothari
Interim Resolution
Professional: Nitin Om Kothari
5A/301, Alica Nagar
Lokhandwala Township
Kandivali East
Mumbai 400101
E-mail: cakotharico@gmail.com
- and -
A/302, Silver leaf
Near to Growel Mall
Akruli Road
Kandivali (East)
Mumbai 400101
E-mail: cirp.metaarch@gmail.com
Last date for
submission of claims: November 5, 2021
MONO STEEL: CRISIL Lowers Rating on INR13cr Cash Loan to B
----------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of Mono
Steel India Limited (MSIL, part of Mono group) 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 13 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
Cash Credit 13 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
Letter of Credit 57 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Letter of Credit 54 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with MSIL for
obtaining information through letters and emails dated August 19,
2021 and October 6, 2021 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
Ratings failed to receive any information on either the financial
performance or strategic intent of MSIL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MSIL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MSIL revised to 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating'
from 'CRISIL BB+/Stable/CRISIL A4+ Issuer Not Cooperating'.
MSIL, incorporated in 1990 by Mr. Chimanbhai Shah and his brothers,
Mr. Jaysukhlal Shah and Mr. Bhupatrai Shah, manufactures sponge
iron, billets, and thermo-mechanically treated (TMT) bars at Anjar
(Gujarat). It also operates a solar plant of 10 MW at Una, Gujarat.
NEW ANIKET: CRISIL Lowers Rating on INR5cr Term Loan to B
---------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of New
Aniket Packaging Industries Private Limited (NAPIPL) to 'CRISIL
B/Stable Issuer Not Cooperating' from 'CRISIL BB/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.5 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Proposed Long Term 1.5 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Proposed Term Loan 2 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Proposed Term Loan 1.5 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Term Loan 5 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with NAPIPL for
obtaining information through letters and emails dated August 19,
2021 and October 6, 2021 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
Ratings failed to receive any information on either the financial
performance or strategic intent of NAPIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
NAPIPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of NAPIPL Revised to 'CRISIL B/Stable Issuer Not
Cooperating' from 'CRISIL BB/Stable Issuer Not Cooperating'.
Incorporated in 2001 by Mr. Ajith Inamdar (chairman and managing
director), NAPIPL manufactures corrugated boxes at its unit in
Chakan (Maharashtra).
NEW STONE: CRISIL Lowers Rating on INR5cr Cash Loan to C
--------------------------------------------------------
Due to inadequate information and in-line with the Securities and
Exchange Board of India guidelines, CRISIL Ratings had migrated its
ratings on the bank facilities New Stone Quarry (NSQ) to 'CRISIL
B+/Stable Issuer Not Cooperating'. However, NSQ has subsequently
started sharing the information necessary for carrying out a
comprehensive review of the ratings. Consequently, CRISIL Ratings
is migrating the rating to 'CRISIL C'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL C (Migrated from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Proposed Long Term 1.71 CRISIL C (Migrated from
Bank Loan Facility 'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Working Capital 1.38 CRISIL C (Migrated from
Demand Loan 'CRISIL B+/Stable ISSUER NOT
COOPERATING')
The rating reflects default in debt repayment of term loans to
Kotak Mahindra Bank (KMB) from August to October 2021, which are
not rated by CRISIL. The term loan repayment continues to remain
outstanding and in absence of timely track record for 90 days on
these loans, the rating action has been taken. This is on account
of poor liquidity of the company.
The rating reflects the delay in repaying debt obligation of KMB,
subdued business risk profile and weak financial risk profile.
These weaknesses are partially offset by the promoter's industry
experience.
Key Rating Drivers & Detailed Description
Weaknesses:
* Delay in repaying debt obligation: NSQ has been delaying on
repayment of its term loans from KMB from August 2021 to October
2021, due to stretched liquidity.
* Subdued business risk profile: Operations of the firm are shut
since March 2020 due to exhaustion of the black trap and the firm
registered a revenue of Rs 0.84 crore in fiscal 2021. Further,
production is expected to begin from December 2021 at the new
leased land and CRISIL Ratings believe that business risk profile
shall continue to remain subdued in fiscal 2022.
* Weak financial risk profile: Losses over the last two fiscals
ended March 31, 2021, has resulted in erosion of networth and hence
weak capital structure. Debt protection metrics were weak marked by
estimated interest coverage ratio and net cash accruals to adjusted
debt ratio of 0.29 time and -0.05 times respectively for fiscal
2021.
Strength:
* Extensive experience of promoter in the industry: NSQ's promoter
has extensive experience for more than a decade in the industry,
which has helped build relations with customers and suppliers.
Liquidity: Poor
Liquidity is constrained because of low cash accrual against term
debt obligation and high bank limit utilisation. NSQ defaulted on
term loans from Kotak Mahindra Bank from August 2021 to October
2021. Repayments on the same for November 2021 is currently
outstanding. Bank limit utilisation remained high, averaging 98%
for the 12 months till August 2021.
Rating Sensitivity factors
Upward Factors
* Timely servicing of debt obligation for atleast 90 days
* Improvement in the business risk and financial risk profiles of
the firm
Downward Factors
* Further decline in revenue or profitability
* Worsening liquidity of the company and inability of partners to
infuse capital to service debt obligations
NSQ, set up in 2003, is a partnership concern of Mr. Hafeez
Contractor, Mr. Sherryana Contractor, Mr. Vallary Contractor, and
Mr. Yezdi Contractor. The Rampura (Dahod, Gujarat)-based firm has
been engaged in stone quarrying activities.
NIRMAAN RMBS: CRISIL Hikes Rating on INR58.3cr PTCs to B-(SO)
-------------------------------------------------------------
CRISIL Ratings has upgraded its ratings on Series A1 and Series A2
pass-through certificates (PTCs) issued by Nirmaan RMBS Trust -
Series V - 2014 to 'CRISIL B- (SO)' from 'CRISIL D (SO)' and placed
on 'Rating Watch with Positive Implications'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Series A1 PTCs 56.0 CRISIL B- (SO)/Watch Positive
Upgraded from 'CRISIL D (SO)'
and placed on 'Rating Watch
with Positive Implications'
Series A2 PTCs 2.30 CRISIL B- (SO)/Watch Positive
Upgraded from 'CRISIL D (SO)'
and placed on 'Rating Watch
with Positive Implications'
The PTCs are backed by housing loan receivables originated by Dewan
Housing Finance Corporation Ltd (DHFL) and the pool is being
serviced by DHFL.
The rating action follows regularization of past defaults, and
adequate track record of timely payment of dues to the PTC holders.
The collection efficiencies of the pool over the last few months
have been stable with 3-month average monthly collection ratio
(MCR) at 99.1% along with high amortization of 80.4%, as after
October 2021 payout. The collection ratios have recovered from the
dip seen during the second wave of Covid-19 (lowest MCR was 92.6%
in June 2021 payout in fiscal 2022) and the delinquencies are low
with overdues at 0.2% of POS. The cumulative collection ratio (CCR)
is at 99.7%.
CRISIL Ratings has also factored in the notification by the
originator to the trustee regarding normalization of the credit
collateral (CC) in the transaction, post-completion of the
Resolution Plan approved by National Company Law Tribunal (NCLT)
under Corporate Insolvency Resolution Process.
However, operationalization of the credit collateral is in process.
CRISIL Ratings will continue to monitor its progress and, await
clarity on access to credit collateral; and take appropriate rating
actions.
Key Rating Drivers & Detailed Description
Strengths:
The pool has amortized by 80.4% and the 3-month MCR has been around
99.1% as of October 2021 payout.
Weakness:
* Potential impact of the pandemic on collections: In case of
subsequent peaks of the Novel Coronavirus (Covid-19) pandemic,
there could be pressure on collections and asset quality of the
pool of receivables. Any impact on collection efficiencies post the
reverse merger of DHFL with Piramal Capital & Housing Finance
Limited (PCHFL) as per the resolution plan
Liquidity: Poor
Given lack of clarity on the access to the credit collateral, and
the form in which the credit collateral will be maintained going
forward, the liquidity is deemed to be poor. Once normalized, the
credit cum liquidity enhancement available in the transaction would
amount to INR22.86 crore (39.2% of the PTC principal).
Rating Sensitivity factors
Upward factors
* Confirmations from relevant stakeholders on immediate access to
credit collateral without any potential operational or technical
hurdles
* Clarity on the form in which the credit collateral will be
maintained going forward, and supporting documentation for the
same
* Continuation of satisfactory pool performance with reduction in
overdues.
Downward factors
* Significant impact on collections due to any factor, including
corporate restructuring or changes in collection teams.
* Any hindrance, procedural or technical, placed in accessing
credit enhancement by the trustee.
These aspects have been factored by CRISIL Ratings in its
analysis.
About the Pool
The transaction is backed by receivables from housing loans
originated by DHFL and currently being serviced by DHFL.
Key rating assumptions
CRISIL Ratings has analyzed the performance of the securitized
housing loan pool of DHFL as of October 2021 payout, as well as
various risks associated with the transaction, given the ongoing
pandemic.
About the originator
Incorporated in 1984, DHFL has been in the business of primarily
providing housing finance to low- and lower-middle-income groups in
Tier II and Tier III cities. The company's offerings included
non-housing loans such as loans against property (LAP), developer
loans, and loans to small and medium enterprises. In December 2010,
it acquired Deutsche Post Bank Home Finance Ltd (DPBHFL) to enter
the middle- and upper-middle-income segments in Tier I cities.
DPBHFL was renamed First Blue Housing Finance Ltd and was merged
with DHFL in March 2013.
With effect from September 30, 2021, Piramal Capital and Housing
Finance Limited (PCHFL) has merged into DHFL pursuant to the
reverse merger as contemplated under scheme of arrangement provided
under the Resolution Plan.
PAMI METALS: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Pami Metals Private Limited
Registered office:
22, Biplabi Trilakya Maharaj Sarani
Brabourne Road, 3rd Floor
Kolkata WB 700001
Factory Premises:
Sankrail Industrial Park
Dhulagarh Sankrail
Howrah 711302
Plot No. 712, 713, 714
Waghodia GIDC, Vadodara
Gujarat
Insolvency Commencement Date: November 3, 2021
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: May 1, 2022
Insolvency professional: Mr. Jitendra Lohia
Interim Resolution
Professional: Mr. Jitendra Lohia
Klass Insolvency Resolution
Professionals Pvt. Ltd.
2/7 Sarat Bose Road, 2nd Floor
Vasundhara Building
Near Hindustan Club
Kolkata 700020
West Bengal
E-mail: cirp.pamimetals@gmail.com
jitulohia@knjainco.com
Last date for
submission of claims: November 17, 2021
PANDIT AUTOMOBILES: CRISIL Keeps B Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Pandit
Automobiles Private Limited (PAPL) continue to be 'CRISIL
B/Stable/CRISIL A4 Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 12 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 0.65 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 1 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PAPL for
obtaining information through letters and emails dated August 19,
2021 and October 6, 2021 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
Ratings failed to receive any information on either the financial
performance or strategic intent of PAPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings 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 B/Stable/CRISIL A4 Issuer Not
Cooperating'.
PAPL was incorporated in June 1998, promoted by Mr. Dhruv Vashishta
and Mrs Uma Sharma; operations are managed by Mr. Vashishta. The
company is an authorised dealer for vehicles of MSIL in the
Yamunanagar district.
PARDES DEHYDRATION: CRISIL Keeps B+ Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Pardes
Dehydration Company (PDC) continue to be 'CRISIL B+/Stable/CRISIL
A4 Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1 CRISIL B+/Stable (Issuer Not
Cooperating)
Inland/Import 0.25 CRISIL A4 (Issuer Not
Letter of Credit Cooperating)
Packing Credit 13 CRISIL A4 (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PDC for
obtaining information through letters and emails dated August 19,
2021 and October 6, 2021 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
Ratings failed to receive any information on either the financial
performance or strategic intent of PDC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PDC
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PDC continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.
PDC was set up in 2015, based in Gondal, Gujarat by Mr. Hitendra
Parekh and Mrs Kirtida Parekh are the partners. The company
manufactures and exports dehydrated vegetables. The manufacturing
facility is in Gondal, Gujarat.
POETS LOVERS: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Poets Lovers and Lunatics Motion Pictures Pvt Ltd
Office No. 1 B101 Basement Satyadev Plaza
Link Road, Andheri (West) Mumbai
Mumbai City, MH 400058
Insolvency Commencement Date: October 6, 2021
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: April 8, 2022
(180 days from commencement)
Insolvency professional: Mr. Pramod N. Mulgund
Interim Resolution
Professional: Mr. Pramod N. Mulgund
A-303, Birchwood Tower
Main Street
Hiranandani Gardens
Powai, Mumbai 400076
E-mail: pramod.mulgund@gmail.com
- and -
519-520, D Block
Neelkanth Business Park
Vidyavihar (W)
Mumbai 400086
E-mail: poetslovers.cirp@gmail.com
Last date for
submission of claims: October 25, 2021
R. G. INDUSTRIES: CRISIL Keeps B Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of R. G.
Industries (RGI) continue to be 'CRISIL B/Stable/CRISIL A4 Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 6 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 17 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 22 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with RGI for
obtaining information through letters and emails dated August 19,
2021 and October 6, 2021 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
Ratings failed to receive any information on either the financial
performance or strategic intent of RGI, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RGI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RGI continue to be 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating'.
The Sachdeva group is owned and managed by Mr. Arvinder Pal Singh,
and his brothers, Mr. Daljit Singh and Mr. Varpreet Singh. The
group is based in Jalandhar, Punjab.
SMW, established in 1996, manufactures valves under the brand
SACHDEVA. RGI, established in 2005, manufactures high quality
Ductile Iron Fittings (sizes 80 mm to 1000 mm) and Cast Iron
Fittings (80 mm to 600 mm) fittings under the brand RG.
WWIPL, undertakes turnkey projects for laying of pipes for
government departments, including municipalities.
Both SMW and RGI have manufacturing facilities in Jalandhar, and
cater to both government departments, including municipalities, and
private contractors.
RADHIKA COTEX: CRISIL Keeps B Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Radhika Cotex
(RC) continue to be 'CRISIL B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.50 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 2.38 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 1.12 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with RC for
obtaining information through letters and emails dated August 19,
2021 and October 6, 2021 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
Ratings failed to receive any information on either the financial
performance or strategic intent of RC, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RC is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of RC
continue to be 'CRISIL B/Stable Issuer Not Cooperating'.
Set up in 2005, RC is a partnership firm based in Amreli (Gujarat)
that gins and presses raw cotton and sells cotton lint and cotton
seeds. Mr. Ramesh Vadera and Mr. Sharad Vadera are the partners.
SAKTHI AMMA HEALTH: CRISIL Withdraws B+ Rating on INR10cr Loans
---------------------------------------------------------------
CRISIL Ratings has withdrawn its ratings on the bank facilities of
Sri Sakthi Amma Health Care Trust (SSAHCT) on the request of the
company and receipt of a no objection certificate from its bank.
The rating action is in line with CRISIL Ratings' policy on
withdrawal of its ratings on bank loans.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Withdrawn)
Term Loan 8 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Withdrawn)
CRISIL Ratings has been consistently following up with SSAHCT for
obtaining information through letters and emails dated February 22,
2021 and August 13, 2021, 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
Ratings failed to receive any information on either the financial
performance or strategic intent of SSAHCT. This restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
SSAHCT is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the rating on bank
facilities of SSAHCT continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
SSAHCT was registered as a charitable trust in 2005. It was formed
by SNP, which manages the Golden Temple of Sripuram (Vellore). The
trust is headed by Sri Sakthi Amma also known as Narayani Amma.
SSAHCT runs a 300- bed super speciality hospital on a no-profit
no-loss basis. In addition to the hospital, the trust operates
nursing and paramedical institutes.
SAKTHI AMMA: CRISIL Withdraws B+ Rating on INR20cr Loans
--------------------------------------------------------
CRISIL Ratings has withdrawn its ratings on the bank facilities of
Sri Sakthi Amma Educational Trust (SSAET) on the request of the
company and receipt of a no objection certificate from its bank.
The rating action is in line with CRISIL Ratings' policy on
withdrawal of its ratings on bank loans.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 15 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Withdrawn)
Term Loan 5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Withdrawn)
CRISIL Ratings has been consistently following up with SSAET for
obtaining information through letters and emails dated February 22,
2021 and August 13, 2021, 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
Ratings failed to receive any information on either the financial
performance or strategic intent of SSAET. This restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SSAET
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
SSAET continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
About the Trust
SSAET was registered as a charitable trust in 2001. It was formed
by SNP, which manages the Golden Temple of Sripuram (Vellore). The
trust is headed by Sri Sakthi Amma also known as Narayani Amma.
SSAET operates a school offering the state board course up to the
tenth standard, with more than 1000 students. It also runs a
Central Board Of Secondary Education (CBSE)-affiliated school
admitting students up to the eighth standard.
SALEM AUTOMECH: CRISIL Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Salem
Automech - Salem (SA) continue to be 'CRISIL B+/Stable/CRISIL A4
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 4 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 4.5 CRISIL B+/Stable (Issuer Not
Cooperating)
Cash Credit 3.5 CRISIL B+/Stable (Issuer Not
Cooperating)
Letter of Credit 0.8 CRISIL A4 (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SA for
obtaining information through letters and emails dated August 19,
2021 and October 6, 2021 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
Ratings failed to receive any information on either the financial
performance or strategic intent of SA, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SA is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of SA
continue to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.
Established in 1971, SA fabricates structural steel components and
trades in ferrous scrap. Mr. M V Sellamuthu and his sons, Mr.
Sidesh Kumar and Mr. Rajesh Kumar, are the promoters.
SAMARTH DAIRY: CRISIL Keeps B+ Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Samarth Dairy
and Agro Products Private Limited (SDAPL) continue to be 'CRISIL
B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Fund- 1.5 CRISIL B+/Stable (Issuer Not
Based Bank Limits Cooperating)
Term Loan 3.5 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SDAPL for
obtaining information through letters and emails dated August 19,
2021 and October 6, 2021 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
Ratings failed to receive any information on either the financial
performance or strategic intent of SDAPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SDAPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SDAPL continue to be 'CRISIL B+/Stable Issuer Not Cooperating'.
SDAPL was incorporated in 2012 and is based in Kolhapur. It
processes milk and other milk products. The company is owned and
managed by Mr. Sanjay Desai and Mr. Sampati Desai.
SANMAAN AGRO: CRISIL Keeps B Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sanmaan Agro
Industries (SAI) continue to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8.5 CRISIL B/Stable (Issuer Not
Cooperating)
Warehouse Receipts 1.5 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SAI for
obtaining information through letters and emails dated August 19,
2021 and October 6, 2021 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
Ratings failed to receive any information on either the financial
performance or strategic intent of SAI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SAI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SAI continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
SAI is a partnership firm set up by Mr. Zora Singh in Jalalabad,
Punjab, in 2000. The firm mills basmati and non-basmati rice.
SARVOTTAM ROLLING: CRISIL Keeps B Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sarvottam
Rolling Mills Private Limited (SRMPL) continue to be 'CRISIL
B/Stable/CRISIL A4 Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.5 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 12 CRISIL B/Stable (Issuer Not
Cooperating)
Letter of Credit 5 CRISIL A4 (Issuer Not
Cooperating)
Proposed Cash 1.91 CRISIL B/Stable (Issuer Not
Credit Limit Cooperating)
CRISIL Ratings has been consistently following up with SRMPL for
obtaining information through letters and emails dated August 19,
2021 and October 6, 2021 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
Ratings failed to receive any information on either the financial
performance or strategic intent of SRMPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SRMPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SRMPL continue to be 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating'.
SRMPL, incorporated in 2005, manufactures ingots and
thermos-mechanically treated bars at its manufacturing facilities
in Muzaffarnagar, Uttar Pradesh. The company is currently owned and
managed by Mr. Sanjay Jain and Mr. Rajeev Jain. The company was
acquired by its current promoters in 2007.
SET SANAYI: Insolvency Resolution Process Case Summary
------------------------------------------------------
Debtor: Set Sanyai Elektrik-Tesisat Taahut Ve Ticaret
India Private Limited
F-91/F, 2nd Floor
Dilshad Colony Delhi
East Delhi DL 110095
IN
Insolvency Commencement Date: October 30, 2021
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: April 28, 2022
Insolvency professional: Mr. Lokesh Khadaria
Interim Resolution
Professional: Mr. Lokesh Khadaria
607-608, Ajanta Shopping Center
Ring Road, Surat 395002
E-mail: khadaria@gmail.com
cirp.set@gmail.com
Last date for
submission of claims: November 13, 2021
SHAILA CLUBS: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Shaila Clubs and Resorts Private Limited
Kore Plaza
Behind Hotel Pai-Prakash
Vishrambag Sangli Maharashtra
India 416415
Insolvency Commencement Date: October 29, 2021
Court: National Company Law Tribunal, Pune Bench
Estimated date of closure of
insolvency resolution process: April 30, 2022
Insolvency professional: Mr. Milind Kasodekar
Interim Resolution
Professional: Mr. Milind Kasodekar
KMDS & Associates
Company Secretaries
3rd Floor, Satyagiri Apartments 77
Vijayanagar Colony
2147, Sadashiv Peth
Pune 411030
E-mail: milind.kasodekar@kmdscs.com
Last date for
submission of claims: November 15, 2021
SHARP RENEWAL: CRISIL Moves B Debt Ratings to Not Cooperating
-------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Sharp
Renewal Energy Private Limited (SREPL) to 'CRISIL B/Stable Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 7 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
Proposed Working 2 CRISIL B/Stable (ISSUER NOT
Capital Facility COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with SREPL for
obtaining information through letters and emails dated September
30, 2021 and October 16, 2021 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
Ratings failed to receive any information on either the financial
performance or strategic intent of SREPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SREPL
is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the rating on
bank facilities of SREPL to 'CRISIL B/Stable Issuer not
cooperating'.
SREPL was incorporated in June 2019. The company is setting up a
waste-based compressed biogas plant at Panipat (Haryana), with
installed capacity of 2400 kg of bio CNG per day. The plant is
expected to be commissioned in December 2020. Operations are
managed by promoters, Mr. Satish Kumar Jaglan and his family.
SHREEPATI BUILD INFRA: Insolvency Resolution Process Case Summary
-----------------------------------------------------------------
Debtor: Shreepati Build Infra Investment Limited
Row House D
Castle Rock Land Scape Town
Odxel, North Goa
Goa 403004
Insolvency Commencement Date: October 29, 2021
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: April 27, 2022
Insolvency professional: Rakesh Kumar Tulsyan
Interim Resolution
Professional: Rakesh Kumar Tulsyan
B-4, Vinay Tower
Kranti Nagar, Lokhandwala
Kandivali East
Mumbai 400101
E-mail: tulsyanrk@gmail.com
cirp.shreepati@gmail.com
Classes of creditors: Allotees of Residential
Commercial under Real Estate Project
of the Corporate Debtor
Insolvency
Professionals
Representative of
Creditors in a class: Mukesh Khaturia
6B/1105 Sapphire Heights
Lokhandwala Township
Akurli Road, Kandivali East
Mumbai 400101
E-mail: khathuria@hotmail.com
Nitin Kothari
5A/301 Alica Nagar
Lokhandwala Township
Kandivali East
Mumbai 400101
E-mail: cakotharico@gmail.com
CA Kanak Jani
17, Sai Moreshwar Luxuria
Plot No. 74, Sector 18
Khargar
Next to Sanjeevani Inernational School
Navi Mumbai 410210
E-mail: kanakjani.associates@gmail.com
Last date for
submission of claims: November 12, 2021
SREI GROUP: Expects Delay in Q2 Results on Insolvency Order
-----------------------------------------------------------
Business Standard reports that Srei Infrastructure Finance on Nov.
10 said there may be a delay by the company and its subsidiary Srei
Equipment Finance Ltd (SEFL) in submitting financial results for
September quarter due to initiation of corporate insolvency
resolution process against them.
Through an order on October 8, 2021, the National Company Law
Tribunal (NCLT), Kolkata bench initiated corporate insolvency
resolution process against Srei Infrastructure Finance Ltd (SIFL)
and SEFL under the Insolvency and Bankruptcy Code, 2016, Business
Standard related.
On October 4, the Reserve Bank superseded the boards of SIFL and
SEFL owing to governance concerns and defaults by the companies in
meeting payment obligations. RBI appointed Rajneesh Sharma as the
administrator of the companies (Srei Group). Sharma is a former
chief general manager of Bank of Baroda.
As per regulatory norms, listed companies are required to submit
their standalone and consolidated financial results to stock
exchanges within 45 days of the end of a quarter, in this case,
within November 14, 2021, the report says.
"However, in view of the NCLT order, we wish to inform you that
there is a possibility of delay in preparation and hence
finalisation of the standalone and consolidated financial results
for the quarter and half-year ended on September 30, 2021," Srei
said.
According to the report, the company said it has made a request to
capital markets regulator Sebi to allow them an additional 45 days,
till December 30, 2021 to be able to finalise and submit the
results.
The economic distress caused due to the pandemic created an
asset-liability mismatch at Srei Group of companies, which
ultimately led to the RBI taking control of the group in October,
the report adds.
About SREI Infrastructure
SREI Infrastructure Finance Ltd. is a non-banking financial
institution. The company has three principal lines of business in
financing: infrastructure equipment finance, infrastructure
projects finance and renewable energy product finance.
Infrastructure equipment finance is the largest business division
of the Company.
On Oct. 4, 2021, the Reserve Bank of India superseded the board of
directors of Kolkata-based Srei Infrastructure and said that it
will initiate insolvency proceedings with the National Company Law
Tribunal (NCLT), according to The Economic Times. The RBI cited
governance concerns and defaults by the company and appointed
Rajneesh Sharma, former chief general manager, Bank of Baroda as an
administrator of the company.
The insolvency resolution process against the company started on
Oct. 8, 2021.
SUDHARSANAM HOSPITAL: CRISIL Keeps B+ Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sri
Sudharsanam Hospital Private Limited (SSHPL) continue to be 'CRISIL
B+/Stable/CRISIL A4 Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 6.5 CRISIL B+/Stable (Issuer Not
Cooperating)
Overdraft Facility 0.1 CRISIL A4 (Issuer Not
Cooperating)
Proposed Working 0.4 CRISIL B+/Stable (Issuer Not
Capital Facility Cooperating)
CRISIL Ratings has been consistently following up with SSHPL for
obtaining information through letters and emails dated August 19,
2021 and October 6, 2021 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
Ratings failed to receive any information on either the financial
performance or strategic intent of SSHPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SSHPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SSHPL continue to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.
Incorporated in 2014, Chennai-based SSHPL operates a hospital in
Chennai with 50 beds. The operations of the hospital are managed by
the promoters, Dr S Aravind and his wife, Ms S Prema.
SURIYA SPINNING: CRISIL Withdraws B Rating on INR4.50cr Loan
------------------------------------------------------------
CRISIL Ratings has withdrawn its ratings on the bank facilities of
Suriya Spinning Mills (SSM) on the request of the company and
receipt of a no objection certificate from its bank. The rating
action is in line with CRISIL Ratings' policy on withdrawal of its
ratings on bank loans.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.50 CRISIL B/Stable/Issuer Not
Cooperating (ISSUER NOT
COOPERATING; Rating Withdrawn)
Proposed Long Term 2.23 CRISIL B/Stable/Issuer Not
Bank Loan Facility Cooperating (ISSUER NOT
COOPERATING; Rating Withdrawn)
Term Loan 1.77 CRISIL B/Stable/Issuer Not
Cooperating (ISSUER NOT
COOPERATING; Rating Withdrawn)
CRISIL Ratings has been consistently following up with SSM for
obtaining information through letters and emails dated
December 18, 2020 and June 9, 2021, 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
Ratings failed to receive any information on either the financial
performance or strategic intent of SSM. This restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SSM
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
SSM continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
CRISIL Ratings has withdrawn its ratings on the bank facilities of
SSM on the request of the company and receipt of a no objection
certificate from its bank. The rating action is in line with CRISIL
Ratings' policy on withdrawal of its ratings on bank loans.
Established in 2003, SSM is a partnership firm based in Pollachi,
Tamil Nadu. Mr. Venkat Subramanian, his wife Mrs. Suguna and son
Mr. Jai Kumar are the partners. The firm is into spinning of cotton
and polyester yarn.
SWASTIK ENTERPRISES: CRISIL Keeps B- Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Swastik
Enterprises - New Delhi (SE) continue to be 'CRISIL B-/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.5 CRISIL B-/Stable (Issuer Not
Cooperating)
Proposed Long Term 9.5 CRISIL B-/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with SE for
obtaining information through letters and emails dated August 19,
2021 and October 6, 2021 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
Ratings failed to receive any information on either the financial
performance or strategic intent of SE, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SE is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of SE
continue to be 'CRISIL B-/Stable Issuer Not Cooperating'.
SE, set up as a proprietorship firm in 1989 by Mr. Rakesh Gupta, is
located in New Delhi. It was reconstituted as a partnership firm in
1991. SE trades in steel scraps and cold-rolled sheets; it sells
steel scraps to thermo-mechanically treated (TMT) steel bar
manufacturers, auto manufacturers, and casting units. The firm's
operations are managed by Mr. Rakesh Gupta, Ms. Renu Gupta, and Mr.
Arun Gupta.
SWEDE SANITARY: CRISIL Keeps B Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Swede
Sanitary Wares (SSW) continue to be 'CRISIL B/Stable/CRISIL A4
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.3 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 1.0 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 3.8 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 4.9 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SSW for
obtaining information through letters and emails dated August 19,
2021 and October 06, 2021 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
Ratings failed to receive any information on either the financial
performance or strategic intent of SSW, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SSW
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SSW continues to be 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating'.
SSW, established in 2013, is promoted by Morbi, Gujarat-based Mr.
Appu Patel and others. The firm manufactures sanitary items such as
art basins, cabinet basins, and pedestal basins. It commenced
commercial operations in January 2014.
TULSUN RESOURCES: CRISIL Keeps B Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Tulsun
Resources Limited (TRL) continue to be 'CRISIL B/Stable/CRISIL A4
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B/Stable (Issuer Not
Cooperating)
Letter of Credit 15 CRISIL A4 (Issuer Not
Cooperating)
Proposed Long Term 6.78 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
Proposed Short Term 10 CRISIL A4 (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with TRL for
obtaining information through letters and emails dated August 19,
2021 and October 6, 2021 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
Ratings failed to receive any information on either the financial
performance or strategic intent of TRL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on TRL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
TRL continue to be 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating'.
Established in 1995 in Porbandar (Gujarat), PCAPL, promoted and
managed by Mr. Rajesh Hathi, trades in and processes coking and
non-coking coal.
VALENS MOLECULES: CRISIL Lowers Rating on INR3cr Cash Loan to B
---------------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of Valens
Molecules Private Limited (VMPL) to 'CRISIL B/Stable Issuer Not
Cooperating' from 'CRISIL BB/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Cash Credit 5 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Long Term Loan 16 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Long Term Loan 16 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with VMPL for
obtaining information through letters and emails dated August 31,
2021 and October 6, 2021 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
Ratings failed to receive any information on either the financial
performance or strategic intent of VMPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VMPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
VMPL Revised to 'CRISIL B/Stable Issuer Not Cooperating' from
'CRISIL BB/Stable Issuer Not Cooperating'.
Incorporated in 1995 as Posh Chemicals Pvt Ltd, VMPL got its
present name in August 2016. Based in Hyderabad and promoted by Mr.
C S Ratna Prasad and his family members, the company manufactures
bulk drug intermediates.
WALFS INFRA: CRISIL Lowers Rating on INR95cr Loans to C
-------------------------------------------------------
CRISIL Ratings has migrated the rating on the bank facilities of
Walfs Infra India Private Limited (WIIPL) to 'CRISIL C Issuer Not
Cooperating' from 'CRISIL B/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 25 CRISIL C (ISSUER NOT
Bank Loan Facility COOPERATING; Migrated from
'CRISIL B/Stable')
Term Loan 95 CRISIL C (ISSUER NOT
COOPERATING; Migrated from
'CRISIL B/Stable')
CRISIL Ratings has been consistently following up with WIIPL for
obtaining information through letters dated September 29, 2021 and
October 16, 2021 and emails dated October 21, 22, 28 and November
2, 2021 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
Ratings failed to receive any information on either the financial
performance or strategic intent of WIIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on WIIPL
is consistent with 'Assessing Information Adequacy Risk'.
Factoring in the project implementation phase for WIIPL along with
restricted cash flows available to it, leading to accentuated risks
and basis publicly available information, CRISIL Ratings has
migrated the rating on the bank facilities of WIIPL to 'CRISIL C
Issuer Not Cooperating' from 'CRISIL B/Stable'.
Walfs was set up in May, 2014 by a consortium of builders to
establish a 300-bed multi-speciality hospital in Chennai. The
construction of the hospital commenced in January 2017, and
commercial operations was expected to be achieved by March, 2022.
ZOMATO LTD: Net Loss Widens to INR434.9cr in Qtr Ended Sept. 30
---------------------------------------------------------------
Business Standard reports that Zomato Ltd on Nov. 10 reported
widening of its consolidated net loss to INR434.9 crore for the
quarter ended Sept. 30, 2021, mainly on account of investments in
the growth of its food delivery business.
Business Standard relates that the company had posted a net loss of
INR229.8 crore for the corresponding period of the previous fiscal,
Zomato Ltd said in a regulatory filing.
Consolidated revenue from operations of the company stood at
INR1,024.2 crore for the quarter under consideration. It was INR426
crore for the same period a year ago, it added.
"Why did our losses go up? This was due to investments in the
growth of our food delivery business," Business Standard quotes
Zomato Founder & CEO Deepinder Goyal and CFO Akshant Goyal as
saying in a letter.
Business Standard relates that the losses went up specifically due
to three reasons -- increased spending on branding and marketing
for customer acquisition, increased investments and growing share
of smaller/emerging geographies in the company's business and
increased delivery costs due to unpredictable weather and increase
in fuel prices, they added.
On the long term view of Zomato's business, the letter said the
three main parts of it are brutal prioritisation, that is divesting
or shutting down any businesses which aren't likely to drive
exponential value for its shareholders in the long term, the report
relays.
Investing in the company's core food businesses and the ecosystem
around it to make it a robust long term value drive, and building
the hyperlocal e-commerce ecosystem by leveraging its key strengths
to invest and partner with other companies to tap into growth
opportunities beyond, it added.
"Our core food related businesses food ordering and delivery,
dining-out, and hyperpure (B2B supplies for restaurants) will
remain the key value drivers for Zomato for the next few years.
These are all complex businesses and we want our entire team to
stay focused on these most important value drivers for our
business," the letter, as cited by Business Standard, said.
Keeping this in mind, Zomato is in the process of divesting or
shutting down its non-core businesses which were not going to
significantly move the needle for shareholders in the long term, it
added.
Zomato is in the process of selling Fitso to Curefit for USD50
million. In order to cultivate a great long term partnership with
Curefit, "we are also investing cash in Curefit. Net USD50 million
cash investment plus value of the Fitso business (worth USD50
million) will give us a cumulative shareholding worth USD100
million in Curefit (6.4 per cent shareholding in Curefit)," the
letter said.
Business Standard adds that the company has also signed definitive
documents for investing around USD75 million in Bigfoot Retail
Solutions Pvt Ltd (Shiprocket) for around 8 per cent stake as part
of a larger USD 185 million round, it added.
"We have also signed definitive documents for investing around
USD50 million in Samast Technologies Pvt Ltd (magicpin) for around
16 per cent stake as part of a total round size of USD60 million,"
the letter said.
Including USD100 million investment in Grofers earlier in August
2021, "we have now committed USD275 million across four companies
over the past six months. We plan to deploy another USD1 billion
over the next 1-2 years, with a large chunk of it likely to go into
the quick-commerce space," it added.
"The company has shut down our direct-to-consumer experiment in
Nutraceuticals. Instead, it is choosing to back a platform play for
all D2C brands by investing in Shiprocket," it added.
"We are also shutting down our operations in Lebanon, which is the
only international business we were left with other than dining-out
business in the UAE after shutting down the rest of our
international operations last year," the letter said.
Zomato believes that the food delivery market in India is still
nascent, and there is an opportunity to grow the market at least
10x over the next few years, it added, Zomato Ltd relays.
"In order to make this happen, we are going to continue investing
heavily in market creation, in addition to investing in ecosystem
companies around our food delivery business so that the cost of
running a better food delivery business goes down with time," the
letter said.
According to Business Standard, the company is currently in talks
with various restaurant point-of-sale players, e-vehicle fleet
operators, among others, to evaluate investments in these companies
keeping the long term in mind, it added.
Dining-out is still recovering from the shockwaves of COVID-19, and
it will take a few months for the dining-out sector to get back on
the growth path it was on pre-COVID. Zomato is continuing investing
in product development and working with its restaurant partners to
get the industry back in shape easier and faster, the letter said.
"Hyperpure is growing well, and we are excited about what it can
become. We are building this business with first principles
discipline, and are planning to invest upwards of USD 50 million in
this business over the next 18-24 months," it added.
About Zomato Limited
Headquartered in Gurugram, India, Zomato Limited --
http://www.zomato.com/-- operates as an online food delivery
company in India and internationally. Its technology platform
connects customers, restaurant partners, and delivery partners. The
company also operates Hyperpure, a procurement solution that
supplies ingredients and kitchen products to restaurant partners.
It offers restaurant search and discovery, online order, pick up,
and table reservations services.
===============
M A L A Y S I A
===============
SAPURA ENERGY: Debt Woes Grow as Company Post MYR1.52BB Loss
------------------------------------------------------------
The Edge Malaysia reports that after Sapura Energy Bhd's bombshell
MYR1.52 billion loss in its latest financial quarter, concerns are
growing that the debt-laden group will need yet another capital
injection to pay its vendors.
There is also market talk that the offshore infrastructure
contractor is negotiating with the banks to restructure its
long-term debt of MYR10 billion, the Edge relates.
A cash squeeze amid pending claims from clients of more than MYR460
million in Covid-19-related costs and other change orders to the
tune of about MYR1 billion are also in the background of the
financial woes that Sapura Energy has been struggling with for the
past five years, if not longer, according to the report.
Its group CEO Datuk Mohd Anuar Taib, however, is hopeful that its
discussions with clients on the claims will bear fruit.
Consequently, he would not have to ask for more capital from
shareholders knowing that Sapura Energy made a massive cash call in
2018, raising MYR4 billion.
"It is too early to say," he tells The Edge when asked about the
likelihood of another recapitalisation exercise. "As it is, I think
it's too early to say what will be the outcome of all the
conversations we are having [with our counterparties]. In essence,
there are many things we can do to solve that . . . There are a lot
of opportunities there for us to [resolve the claims]."
Anuar, who joined Sapura Energy a little over a year ago, did not
hide the fact that the group is facing a short-term liquidity
mismatch due to the delay in the collection of claims, the report
relays.
"If you have been paying [vendors] and not having revenue coming
in, it's a challenge. We are more globally exposed than many
Malaysian O&G contractors; we have a breadth of things that we do,"
the report quotes Anuar as saying.
"[But] we have never missed any mandatory payment of any of our
[financial obligations]. And with the vendors, ongoing projects are
paid - if not within time, slightly behind, but we paid. For
projects where clients have not paid, we know we have to put a
structured payment with them. We are trying our best."
The bleeding in 2QFY2022 came largely from Sapura Energy's
engineering and construction (E&C) division, due to provision for
foreseeable losses and higher project costs from the offshore wind
farm piling works in Taiwan, and another project in India. The
provisions were the result of a review of all its projects and bids
since July, according to Anuar.
Analysts have suggested that the Taiwan project was mainly affected
by soil conditions, which was different from what was understood
when Sapura Energy secured the contract in 2019, The Edge relays.
"That [soil condition] is part of the discussions [with the
client]. People do speculate but at the end of the day, it's [due
to] many factors," says Anuar.
Sapura Energy Berhad, formerly SapuraKencana Petroleum Berhad, is
engaged in investment holding and the provision of management
services to its subsidiaries. The Company's segments include
Engineering and Construction (E&C), Drilling, Energy and
Corporate.
SERBA DINAMIK: Misses Coupon Payment for US$300 Million Sukuk
-------------------------------------------------------------
theedgemarkets.com reports that Serba Dinamik Holdings Bhd, which
is currently in a legal stand-off with Bursa Malaysia, KPMG and EY
Consulting, has missed the coupon payment due on its US$300 million
sukuk Nov. 9.
According to the report, the Islamic bond paper is a three-year
senior unsecured sukuk with a 6.3% annual profit rate that is
payable biannually. The tranche of bonds will mature on May 9 next
year.
The coupon payment that was due is about US$9.45 million (RM39.35
million), theedgemarkets.com discloses citing back-of-the-envelope
calculation.
It is understood that the non-payment does not constitute a default
yet as the bond covenant includes a 30-day grace period for the
coupon payment to be made from the due date.
However, the May 2022 sukuk contains cross-default provisions with
another tranche of US$200 million sukuk, which matures on March 12,
2025, the report relates. Its other Islamic bond paper has an
annual profit rate of 6.997%, which is also paid biannually.
The US$300 million sukuk was issued by SD International Sukuk Ltd,
a wholly-owned indirect subsidiary of Serba Dinamik, the report
notes.
According to theedgemarkets.com, Serba Dinamik's US$300 million
sukuk as well as the company's long-term credit rating have been
downgraded in recent months amid the ongoing special independent
review of its financials, which has no deadline set for completion.
Rating analysts see that the special review is leaving the company
with limited space to address its impending debt maturities.
On Aug. 21, S&P Global Ratings downgraded Serba Dinamik's foreign
currency long-term credit rating to CCC from B- to reflect the
company's debt maturities of MYR1.7 billion from then until May
2022.
Fitch Ratings on Nov. 2 downgraded both Serba Dinamik's long-term
issuer default rating and the company's May 2022 sukuk to CCC- from
B-.
This week, Serba Dinamik forfeited its MYR2.42 million deposit for
a proposed purchase of an eight-storey office building in Putrajaya
from AwanBiru Technology Bhd (Awantec) for MYR24.2 million,
theedgemarkets.com reports. Awantec announced it on Nov. 10.
The report relates that the sale was mutually called off after
Serba Dinamik failed to complete the purchase of Block 12,
Corporate Park, Star Sentral @ Cyberjaya in accordance with the
terms of the sale and purchase agreement inked in February.
What started as audit disputes between Serba Dinamik and its former
auditor KPMG have evolved into a legal stand-off.
The audit disputes started in May when KPMG raised issues relating
to sales, trade payables and material on-site balances involving 11
parties which accounted for total sales transactions of MYR2.32
billion, a trade receivables balance of MYR652 million and
materials on-site balance of MYR569 million.
Based on the unaudited accounts, Serba Dinamik's receivables had
ballooned to MYR1.865 billion as at end-2020 in three years from
MYR880 million at end-2017, the report discloses.
theedgemarkets.com relates that Serba Dinamik group managing
director and chief executive officer Datuk Dr Mohd Abdul Karim
Abdullah, who is also the largest shareholder, has insisted that
the company "has done nothing wrong" as far as the audit issues
flagged by KPMG are concerned. Soon after, Serba Dinamik filed a
lawsuit against KMPG. It alleged that its former auditor had been
negligent and breached its contractual and statutory duties to the
company.
Months later, in October, Serba Dinamik locked horns with the stock
exchange on disclosure compliance. Bursa has suspended the trading
of Serba Dinamik's securities since Oct 22 on the grounds that the
company failed to reveal the updates given by EY on the special
review of its financial accounts.
Bursa insisted that EY, which is undertaking the special review of
Serba Dinamik's financials, had presented an update on the review
to the company's independent directors. However, Serba Dinamik
denied that its directors had obtained any material information
from the auditor, theedgemarkets.com relays.
Subsequently, Serba Dinamik took legal action against Bursa for
acting "in excess of power". The company has also sued EY, seeking
to void EY's appointment as the independent reviewer, and to block
the auditor from sharing its findings with any party.
Shares in Serba Dinamik last closed at 35 sen on Oct. 22, valuing
the group at MYR1.3 billion. Over MYR4 billion of market
capitalisation has evaporated since KPMG flagged the audit issues
of its financial accounts, the report notes.
About Serba Dinamik
Serba Dinamik Holdings Bhd is a Malaysia-based investment holding
company, which manages Serba Dinamik group and CSE Global Ltd. The
Group is providing information technology (IT) solutions and energy
service and engineering solutions mainly to the Oil and Gas (O&G)
and power generation industries
As reported in the Troubled Company Reporter-Asia Pacific on Nov.
4, 2021, Fitch Ratings has downgraded Serba Dinamik Holdings
Berhad's (SDHB) Long-Term Issuer Default Rating to 'CCC-' from
'B-'. Fitch has also downgraded the senior unsecured sukuk due May
2022 and March 2025 to 'CCC-', from 'B-' with a Recovery Rating of
'RR4'. All the ratings were removed from Rating Watch Negative
(RWN), which was placed on 3 June 2021.
The downgrade reflects SDHB's diminished cash reserves, stretched
liquidity and heightened refinancing risk on short-term debt with
MYR100 million in commercial paper and USD222 million in sukuk,
both due in May 2022. SDHB's access to debt funding will continue
to face challenges given the previous auditor requested an
independent review - compounded by delays in the release of its
audited financial statements. The review is ongoing, and it is
unclear when it will be finalised and, pending its satisfactory
completion, SDHB has limited time to address its impending
maturities.
=====================
N E W Z E A L A N D
=====================
ALREZ LIMITED: Creditors' Proofs of Debt Due on Dec. 8
------------------------------------------------------
Creditors of Alrez Limited, which is in liquidation, are required
to file their proofs of debt by Dec. 8, 2021, to be included in the
company's dividend distribution.
The Company's shareholders appointed Steven Khov and Kieran Jones
of Khov Jones Limited as joint and several liquidators on Nov. 10,
2021.
The company's liquidators can be reached at:
Steven Khov
Kieran Jones
Khov Jones Limited
PO Box 302261
North Harbour, Auckland 0751
New Zealand
EGMONT LOGGING: Court to Hear Wind-Up Petition on Nov. 19
---------------------------------------------------------
A petition to wind up the operations of Egmont Logging Limited will
be heard before the High Court at Plymouth on Nov. 19, 2021, at
10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Aug. 26, 2021.
The Petitioner's solicitors are:
C. D. Walmsley
Inland Revenue Department
Legal and Technical Services
21 Home Straight (PO Box 432)
Hamilton, New Zealand
MOLYNEUX CHILLED: Court to Hear Wind-Up Petition on Nov. 19
-----------------------------------------------------------
A petition to wind up the operations of Molyneux Chilled Limited
will be heard before the High Court at Plymouth on Nov. 19, 2021,
at 2:25 p.m.
The Commissioner of Inland Revenue filed the petition against the
company on Aug. 25, 2021.
The Petitioner's solicitors are:
C. D. Walmsley
Inland Revenue Department
Legal and Technical Services
21 Home Straight (PO Box 432)
Hamilton, New Zealand
MOONEY FARMS: Creditors' Proofs of Debt Due Dec. 6
--------------------------------------------------
Creditors of Mooney Farms Limited, which is in liquidation, are
required to file their proofs of debt by Dec. 6, 2021, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Nov. 5, 2021.
The company's liquidators are:
Gareth Russel Hoole
Clive Robert Bish
Ecovis KGA Limited
PO Box 37223
Parnell, Auckland
New Zealand
PENRICH CAPITAL: Court Hearing Explores Extent of Losses
--------------------------------------------------------
Stuff.co.nz reports that the extent of the losses involved in
Penrich Capital's collapse has been explored at a court hearing
ahead of the sentencing of the company's owner on serious fraud
charges.
The Christchurch District Court also heard evidence of the number
of investors in the fund which Kelly Tonkin, 52, started in 2004,
the report says.
According to Stuff, the decisions by Judge Tony Couch will be
placed before the sentencing session on December 21 for Tonkin, who
has admitted four charges brought by the Serious Fraud Office (SFO)
of false accounting, making false statements, and forgery.
Stuff relates that the Nov. 11 hearing was significant because the
SFO said the losses were about NZD100 million, while Mr. Tonkin
said the true investor losses were only the fees that Penrith
charged, amounting to NZD2 million to NZD3 million.
Mr. Tonkin was represented by defence counsel Elizabeth Bulger at
the disputed facts hearing.
Penrich failed in March 2021, and liquidators were appointed to
associated companies in London, the Cayman Islands and
Christchurch. The SFO began an investigation the following month.
According to Penrich Capital's former website, the company was a
"global financial institution" investing primarily in fixed income
and foreign exchange.
According to the report, a Cayman Islands official gave evidence on
Nov. 11 by video-link that there had been significant losses
incurred on the investments of the fund. He said that for more than
seven years, Mr. Tonkin had deliberately misrepresented the fund's
net asset value.
As an example, he said that on August 31, 2019, the net asset value
was US$1.77 million while the net asset value being told to
investors was US$82 million.
Ms. Bulger questioned what losses the SFO was including in its
calculation, and said a report from another assessor showed that
the net asset value was not in the negative, Stuff relays.
Mr. Tonkin would say that the only way to reach the negative asset
value assessment was to "completely discount the fund's holding of
corporate debt", she said.
On April 3, 2020, McGrathNicol was appointed liquidator of Penrich
Capital, the Christchurch-based administrator of Penrich Global
Macro Fund.
RALEIGH BULK: Court to Hear Wind-Up Petition on Nov. 19
-------------------------------------------------------
A petition to wind up the operations of Raleigh Bulk Haulage
Limited will be heard before the High Court at Plymouth on Nov. 19,
2021, at 2:15 p.m.
The Commissioner of Inland Revenue filed the petition against the
company on Aug. 26, 2021.
The Petitioner's solicitors are:
C. D. Walmsley
Inland Revenue Department
Legal and Technical Services
21 Home Straight (PO Box 432)
Hamilton, New Zealand
W. & E.A. COLE: Creditors' Proofs of Debt Due Dec. 8
----------------------------------------------------
Creditors of W. & E.A. Cole Limited, which is in liquidation, are
required to file their proofs of debt by Dec. 8, 2021, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Nov. 9, 2021.
The company's liquidators are:
Victoria Toon
Corporate Restructuring Limited
PO Box 10100, Dominion Road
Auckland 1446
New Zealand
=================
S I N G A P O R E
=================
CDL HOSPITALITY: Fitch Affirms 'BB+' LT IDR, Outlook Stable
-----------------------------------------------------------
Fitch Ratings has affirmed Singapore-based CDL Hospitality Real
Estate Investment Trust's (H-REIT) Long-Term Issuer Default Rating
(IDR) at 'BB+'. The Outlook is Stable.
The affirmation with Stable Outlook reflects H-REIT's performance
in 9M21, which was better than Fitch expected. This was due to a
faster reopening of H-REIT's hotels in Western Europe and the
Maldives, which offset the slower pace of reopening in its key
Asia-Pacific markets.
Fitch forecasts the trust's leverage to improve gradually, to
around 11x in 2022 and 9x in 2023 (2021 forecast: 13x), supported
by the resumption in international travel in Singapore, Australia
and New Zealand, as mobility restrictions are lifted amid high
vaccination rates. Even so, deleveraging that is slower than Fitch
expects due to debt-funded acquisitions, or stricter mobility
restrictions remaining in place for longer, could exert downward
rating pressure.
KEY RATING DRIVERS
Slower APAC Recovery in 2022: Fitch forecasts H-REIT's EBITDA to
reach SGD73 million in 2021 and SGD89 million in 2022 (2020: SGD54
million). However, the recovery in EBITDA in 2022 will be slower
than Fitch previously anticipated, as Fitch expects international
travel into the trust's key Asia-Pacific markets of Singapore,
Australia and New Zealand - which accounted for 76% of net property
income (NPI) in 9M21 - to remain measured in the next three to six
months.
Cash flow from H-REIT's Singapore and New Zealand hotels has been
supported by bookings for Covid-19-related isolation, in line with
border controls. Fitch expects a gradual reduction in isolation
demand in these markets in 1H22 with the ramp-up of quarantine-free
travel, and a wider reopening of borders in 2H22. Amid this
transition, Fitch projects occupancy rates to fall sharply for a
quarter or two, but overall revenue per average room should
increase on a stronger rise in average daily rates chargeable on
tourism stays than isolation stays.
Temporarily High Leverage: Fitch expects H-REIT's net debt/EBITDA
to remain higher than its 10x negative rating sensitivity in
2021-2022. This is due to the slower EBITDA recovery in 2022, and
the debt-funded SGD142 million investment (to be progressively
drawn down in line with construction) in residential build-to-rent
property The Castings, in Manchester, which will only start to
contribute cash flow in mid-2024. Still, financial flexibility
remains healthy with EBITDA/interest coverage at 3.5x-5.0x over the
next three years, and net debt/investment properties (LTV) of
around 40%, with strong credit market access.
Lower Fixed Rental Income: Fitch expects fixed rent to account for
around 30% of H-REIT's 2021 revenue, against around 50% in 2020,
after the master leases for the Australian assets expired in April
2021. The trust's hotels in Germany and Italy have also
restructured fixed-rent leases to reflect lower rents until 2024.
Income from the Australian assets is now more at risk if travel and
lodging fundamentals weaken. The bulk of the trust's other master
lease agreements will continue to at least 2026 and provide some
downside protection.
Diversifying Beyond Hospitality: H-REIT's business profile may
strengthen over the medium to long term if the trust executes its
renewed investment strategy to include other accommodation types,
such as rental housing, co-living, student accommodation and senior
housing. Fitch expects such alternatives to provide more resilient
and diversified cash flow to H-REIT in the longer term through a
higher mix of fixed rents and long-stay tenancies.
Foray into Rental Housing: The trust made its foray into rental
housing through a debt-funded investment in The Castings in the UK
in August 2021. The company expects this project to generate an
annual stabilised NPI of SGD7.3 million with an NPI yield of 5.1%
(portfolio average in 2019: 4.6%), supported by strong fundamentals
from an expanding workforce, rising house price/income ratios and
significant infrastructure investment into the surrounding
neighbourhood.
Rating Based on Consolidated Profile: H-REIT is part of a stapled
group - CDL Hospitality Trusts (CDLHT), consisting of H-REIT and
CDL Hospitality Business Trust (HBT). Under the stapling deed, each
stapled security consists of one unit of H-REIT and one unit of
HBT, and is treated as a single instrument. The rating on H-REIT is
based on the consolidated profile of H-REIT and HBT, given Fitch's
view that there are strong operating and strategic linkages between
the two trusts, as provided for in the stapling deed.
DERIVATION SUMMARY
H-REIT's IDR is comparable with that of peers such as Ascott Real
Estate Investment Trust (BBB-/Stable), Host Hotels & Resorts, Inc.
(BBB-/Negative) and Accor SA (BB+/Stable).
Ascott REIT has a larger and more geographically diverse property
portfolio, a higher portion of income from fixed rent and longer
average-stay tenancies, as it caters mostly to the
serviced-residence sub-segment and has an increasing exposure to
student accommodation. These factors provide a larger buffer
against lower earnings during disruptions than for H-REIT.
Consequently, Fitch expects Ascott REIT's financial profile to
recover faster than H-REIT, returning to less than 10x net
debt/EBITDA in 2022.
Host has a substantially larger operating scale than H-REIT, with
80 high-quality up-market hotels across the US and five
international hotels in Brazil and Canada. Fitch believes Host's
earnings will remain negative in 2021 unlike H-REIT, which benefits
from a degree of fixed rent. However, Host's leverage is likely to
recover faster to around 5.7x by 2022, against Fitch's expectation
of 11.4x for H-REIT. This, together with Host's sector-leading
access to capital markets across all points in the cycle, offsets
its temporarily weaker earnings and supports a higher rating than
for H-REIT.
Accor is rated the same as H-REIT. Accor is much larger in terms of
operating scale and is more diversified across geographies.
Nevertheless, Accor's operating cash flow has been severely
affected during the current downturn, with Fitch expecting the
EBITDA margin to remain negative in 2021, and well-below
pre-pandemic levels in 2022, before normalising in 2023. This
weakness is counterbalanced by Accor's strong financial flexibility
and liquidity in the interim. Comparatively, H-REIT's EBITDA
continues to remain healthy, although below pre-pandemic levels,
supported by a significant portion of fixed-rental income earned
via its master leased hotels. This, combined with H-REIT's
unencumbered asset portfolio, supports the trust's higher leverage
compared with that of Accor.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Revenue of SGD152 million in 2021, improving to SGD184 million
in 2022 and SGD216 million in 2023 (2020: SGD118 million);
-- Like-for-like revenue to rise to 61% of pre-pandemic levels in
2021, 70% in 2022, and 90% in 2023;
-- Lower EBITDA margin of around 50% over 2021-2023 due to lower
mix of master leases and a gradual recovery in lodging sector
fundamentals (2019: 66%, 2020: 46%);
-- Capex of around 12% of revenue each year in 2021-2023 (2020:
SGD14 million);
-- Payment for The Castings investment to be made over 2021-2024
with the bulk of the payments in 2022-2023.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Fitch does not expect positive rating action in the next 12-18
months given that the significant disruption to global lodging
fundamentals, and the trust's high leverage as it executes its
diversification into alternative accommodation;
-- Over the longer term, a return of H-REIT's operating scale as
measured by EBITDA, its EBITDA margin, and credit metrics to
pre-pandemic levels could result in an upgrade.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- EBITDA/interest paid sustained below 2.0x;
-- Net debt/EBITDA remaining above 10.0x beyond 2022 due to a
slower recovery and/or debt-funded acquisitions, and net
debt/investment property value sustained above 50%.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
Healthy Liquidity: H-REIT had SGD130 million in cash on hand and
SGD231.4 million of committed revolving credit facilities at
end-September 2021. This provides sufficient liquidity to repay
SGD342 million of debt maturing over the next 12 months to
September 2022, although Fitch expects the trust to refinance these
maturities. The trust has available but uncommitted bridge loan
facilities of SGD369 million that it can use to fund The Castings
development, which is a key driver of net cash outflows through
2023.
Fitch believes H-REIT can continue to refinance its debt maturities
comfortably on an improving lodging-sector outlook. The trust has
demonstrated access to the credit and capital markets even during
the height of the pandemic.
ISSUER PROFILE
H-REIT is part of the stapled group - CDLHT. CDLHT's portfolio
comprises of 18 operational properties including a total of 4,631
rooms and a retail mall, collectively valued at SGD2.7 billion at
September 2021. It also has one build-to-rent project in the
pipeline with 352 apartment units. Its sponsor is Millennium &
Copthorne Hotels Limited (M&C), which is a hotel owner and operator
with assets in 27 countries.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means 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.
XIHE CAPITAL: Creditors' Meeting Slated for Nov. 19
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Creditors of Xihe Capital (Pte) and related entities will hold a
meeting on Nov. 19, 2021, at:
Company Name Time
------------ ----
Xihe Capital (Pte) Ltd 10:00 a.m.
An Chiau Shipping Pte. Ltd 10:00 a.m.
Nan Guang Maritime (PTE) Ltd 10:30 a.m.
An Wei Shipping Pte. Ltd 11:30 a.m.
Da Hui Shipping (Pte.) Ltd 2:00 p.m.
Nan Jin Maritime (Pte.) Ltd 3:00 p.m.
The meeting will be held by way of video conference via Zoom.
Agenda of the meeting includes:
a. to receive a statement of the Company's affairs together
with a list of creditors and the estimated amounts of their
claims;
b. to appoint Liquidator(s); and
c. to discuss other business.
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2021. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
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