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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
Thursday, April 28, 2022, Vol. 25, No. 79
Headlines
A U S T R A L I A
AGRISAVE TECHNOLOGY: Second Creditors' Meeting Set for May 4
ANAMBAH CONSTRUCTIONS: Second Creditors' Meeting Set for May 5
DTLI TRADING: Second Creditors' Meeting Set for May 5
LION TRUST 2022-1: S&P Assigns Prelim. BB Rating on Class E Debt
MINERAL RESOURCES: Moody's Rates $1-Bil. Unsecured Notes 'Ba3'
NEXT CONSTRUCTIONS: First Creditors' Meeting Set for May 5
OPTIMA AUSTRALIA: Second Creditors' Meeting Set for May 4
YOUPLA GROUP: Leaders Urged to Help Funeral Insurer Victims
C H I N A
CHINA EVERGRANDE: Unit Wins Extension for Onshore Bond Payment
I N D I A
AAJVETO MANUFACTURING: ICRA Withdraws B+ Rating on INR11.5cr Loan
AASTHA CROPS: CARE Lowers Rating on INR9cr LT Loan to B
AIRASIA BHD: Air India Plans to Acquire AirAsia's India Unit
ALAM CONSTRUCTIONS: CARE Lowers Rating on INR6cr LT Loan to B-
AMBIKA SUGARS: ICRA Keeps D Debt Ratings in Not Cooperating
B. N. CIVITECH: CARE Lowers Rating on INR10cr LT Loan to C
BASIC INDIA: Liquidation Process Case Summary
BEST IT: CARE Keeps D Debt Ratings in Not Cooperating Category
BEVCON WAYORS: ICRA Keeps D Debt Ratings in Not Cooperating
BHAGIRATH ASSOCIATES: CARE Withdraws B Rating on LT Bank Loan
BHRIGU INFRA PRIVATE: Insolvency Resolution Process Case Summary
BRIJ KISHORE: CARE Keeps B- Debt Rating in Not Cooperating
CHD DEVELOPERS: CARE Keeps D Debt Ratings in Not Cooperating
COASTAL ENERGEN: ICRA Keeps D Debt Ratings in Not Cooperating
COROMANDEL AGRICO: Insolvency Resolution Process Case Summary
DIVYA JYOTI: CARE Keeps B Debt Rating in Not Cooperating
ESSEL WALAJAHPET: CARE Keeps D Debt Rating in Not Cooperating
ETHELBARI TEA: ICRA Moves B+ Debt Rating to Not Cooperating
FUTURE GROUP: Flagship to Face Insolvency Proceedings
FUTURE RETAIL: S&P Lowers Rating on $500MM Secured Notes to 'CC'
G.R. FABRICS: CARE Withdraws B+ Rating on Long Term Debt
GREEN POWER: ICRA Reaffirms D Rating on INR26.79cr Term Loan
HYDERABAD RING: CARE Keeps D Debt Rating in Not Cooperating
ICED DESSERTS: ICRA Withdraws D Rating on INR15cr Term Loan
INDO GLOBAL SOFT: Insolvency Resolution Process Case Summary
JCC INFRATECH: CARE Keeps B- Debt Rating in Not Cooperating
JML MARKETINGS PRIVATE: Insolvency Resolution Process Case Summary
KARVIN CUISINES: Insolvency Resolution Process Case Summary
LINAKS MICRO: Insolvency Resolution Process Case Summary
MHOW GHATABILLOD: CARE Keeps D Debt Rating in Not Cooperating
MUKARBA CHOWK-PANIPAT: CARE Keeps D Debt Rating in Not Cooperating
NACHIAPPAN K: CARE Lowers Rating on INR7.75cr LT Loan to B-
PERMALI WALLACE: ICRA Keeps D Debt Ratings in Not Cooperating
QUADSEL SYSTEMS: CARE Keeps D Debt Ratings in Not Cooperating
RADHAMADHAV AUTOMOBILES: CARE Cuts Rating on INR70.87 LT Loan to D
SARADAMBIKA POWER: Insolvency Resolution Process Case Summary
SESA MINERALS: ICRA Keeps D Debt Ratings in Not Cooperating
SOUBHAGYA LAXMI: Insolvency Resolution Process Case Summary
SPRINT ADVISORY: Voluntary Liquidation Process Case Summary
SRABANI CONSTRUCTIONS: Insolvency Resolution Process Case Summary
SUPERSONIC DEALCOM: Insolvency Resolution Process Case Summary
TIERRA FARM: Insolvency Resolution Process Case Summary
TRV GLOBAL: CARE Keeps B- Debt Rating in Not Cooperating Category
UNIQUE ENGINEERS: ICRA Lowers Rating on INR10cr Cash Loan to B+
VENKATA SAI: CARE Assigns B+ Rating to INR9.0cr LT Loan
VIJAY TRADING: Insolvency Resolution Process Case Summary
VISHWASRAO NAIK: ICRA Keeps B+ Debt Ratings in Not Cooperating
YOGIRAJ GINNING: Insolvency Resolution Process Case Summary
J A P A N
MITSUI E&S: Egan-Jones Keeps CCC- Senior Unsecured Ratings
N E W Z E A L A N D
DELTA SHARED: Court to Hear Wind-Up Petition on May 13
HUM HOSPITALITY: Court to Hear Wind-Up Petition on May 13
S I N G A P O R E
CHARAKU PTE: Court to Hear Wind-Up Petition on May 6
STAR CRUISES: Placed in Provisional Liquidation
STAR RESORT: Placed in Provisional Liquidation
WORLDCARD (SINGAPORE): Placed in Provisional Liquidation
[*] SINGAPORE: MAS Speeds Up Probe of Financial Crimes
S O U T H K O R E A
KOREA GAS: Egan-Jones Hikes Senior Unsecured Ratings to BB
S R I L A N K A
SRI LANKA: World Bank Agrees to Provide US$600MM in Financial Aid
T A I W A N
WAN HAI: S&P Affirms 'BB+' LongTerm ICR on Robust Profitability
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A U S T R A L I A
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AGRISAVE TECHNOLOGY: Second Creditors' Meeting Set for May 4
------------------------------------------------------------
A second meeting of creditors in the proceedings of Agrisave
Technology Pty Ltd has been set for May 4, 2022, at 2:00 p.m. at
the offices of Quigley & Co, Level 5, 231 Adelaide Terrace, in
Perth, WA.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 4, 2022, at 11:00 a.m.
Peter Reymond Quigley of Quigley & Co was appointed as
administrator of Agrisave Technology on March 18, 2022.
ANAMBAH CONSTRUCTIONS: Second Creditors' Meeting Set for May 5
--------------------------------------------------------------
A second meeting of creditors in the proceedings of Anambah
Constructions Pty Ltd has been set for May 5, 2022, at 2:00 p.m.
via Zoom.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 4, 2022, at 4:00 p.m.
Mitchell Griffiths of Rapsey Griffiths Turnaround + Advisory was
appointed as administrator of on March 21, 2022.
DTLI TRADING: Second Creditors' Meeting Set for May 5
-----------------------------------------------------
A second meeting of creditors in the proceedings of DTLI Trading
Pty Ltd has been set for May 5, 2022, at 10:00 a.m. at the offices
of Morgan Conley, 6/239 George Street, in Brisbane, Queensland.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 4, 2022, at 4:00 p.m.
Daniel Moore of BCR Advisory was appointed as administrator of
DTLI Trading on March 18, 2022.
LION TRUST 2022-1: S&P Assigns Prelim. BB Rating on Class E Debt
----------------------------------------------------------------
S&P Global Ratings assigned preliminary ratings to six classes of
prime floating-rate residential mortgage-backed securities (RMBS)
to be issued by Perpetual Corporate Trust Ltd. as trustee of Lion
Series 2022-1 Trust. Lion Series 2022-1 Trust is a securitization
of prime residential mortgages originated by HSBC Bank Australia
Ltd.
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 view that the credit support is sufficient to withstand
the stresses we apply. This credit support comprises note
subordination, lenders' mortgage insurance, and excess spread (if
any).
-- S&P's expectation that the various mechanisms to support
liquidity within the transaction, including principal draws and an
amortizing liquidity facility equal to 1.0% of the outstanding
performing balance of the receivables, are sufficient under its
stress assumptions to ensure timely payment of interest on the
rated notes.
-- The extraordinary expense reserve of A$150,000, funded at
transaction close and available to meet extraordinary expenses.
-- The reserve will be topped up via excess spread if drawn.
-- The benefit of a fixed- to floating-rate interest-rate swap to
be provided by HSBC Bank Australia to hedge the mismatch between
receipts from fixed-rate mortgage loans and the variable-rate
RMBS.
Preliminary Ratings Assigned
Lion Series 2022-1 Trust
Class A1, A$460.00 million: AAA (sf)
Class A2, A$20.00 million: AAA (sf)
Class B, A$9.00 million: AA (sf)
Class C, A$4.75 million: A (sf)
Class D, A$2.25 million: BBB (sf)
Class E, A$2.00 million: BB (sf)
Class F, A$2.00 million: Not rated
MINERAL RESOURCES: Moody's Rates $1-Bil. Unsecured Notes 'Ba3'
--------------------------------------------------------------
Moody's Investors Service has assigned a Ba3 rating to Mineral
Resources Limited's (MinRes) proposed USD1 billion senior unsecured
notes issuance. At the same time, Moody's has also affirmed MinRes'
Ba3 corporate family rating and senior unsecured notes rating. The
outlook is maintained at stable.
The proposed USD1 billion senior unsecured notes will have two
tranches, maturing in 2027 and 2030. The new notes will rank pari
passu with MinRes' existing 2027 senior unsecured notes. Proceeds
from the notes will be used for general corporate purposes,
including capital expenditures.
RATINGS RATIONALE
The Ba3 rating on the proposed notes is at the same level as
MinRes' CFR and existing senior unsecured notes rating.
The rating affirmation reflects Moody's view that while MinRes'
debt and capex will likely increase materially over the next 12-18
months on the potential sanctioning of the large Ashburton iron ore
project, this will be counterbalanced by a substantial rise in the
company's earnings primarily driven by the restart and ramp up of
its lithium business. Also, the continued strong performance of the
company's mining services business will support earnings.
The Ashburton project is a greenfield iron ore project in which
MinRes currently holds a 40% direct stake (44.5% including indirect
interests). Total investment in the project is estimated to be
around AUD2.4-2.55 billion on a 100% basis and the project is
estimated to have a 2-year development timeline. Moody's current
base case expectation is that MinRes, and the project's other joint
venture partners, will likely sanction Ashburton in the coming
months. Moody's understands that execution risks should be
relatively contained given the low complexity of the project and
MinRes' experience and track record in developing mining projects,
including iron ore mines in the Pilbara. Once Ashburton is
operational, Moody's expects the project will provide a material
uplift in MinRes' cashflow. Based on MinRes' feasibility studies,
Ashburton has good estimated operating parameters and is expected
to produce around 30 million tonnes of iron ore with average Fe
grade of 57.5%. Similar to MinRes' current iron ore production this
lower grade ore will receive discounted pricing relative to
benchmark 62% Fe grade ores but the project's operating expense is
estimated to be around AUD30-35 per wet metric tonne, which is
materially below MinRes' current costs of production. The project
is estimated to have long reserve life of more than 30 years.
In addition to capex relating to the Ashburton project, Moody's
notes the potential for higher spending on the company's lithium
business if MinRes reaches an agreement with its MARBL JV partner,
Albemarle Corporation (Baa3 stable), to revise the current MARBL JV
arrangements. The rating agency understands that the amended JV
arrangements could involve MinRes paying a cash consideration to
Albemarle to have its stake in the JV raised from currently 40% to
50%, and MinRes would also contribute its share of capital
expenditures for the JV's investment in downstream conversion
capacity. This compares to the current JV arrangement where MinRes
is not obligated to participate in downstream investment.
Notwithstanding the potential for further growth spending, Moody's
expects MinRes will manage its capital expenditure profile in a
prudent manner, maintain an adequate liquidity buffer, and address
any additional funding needs prior to sanctioning projects.
Earnings from the lithium business has been subdued in recent
periods due to lower prices up to early calendar 2021, and the
MARBL JV's decision to put Wodgina plants on care and maintenance
in late 2019. Lithium prices have since recovered over the past
year and have reached record levels in recent months amid strong
demand and supply tightness. As such, the MARBL JV has announced
its plans to restart production at Trains 1 and 2 of Wodgina.
MinRes also plans to grow output from its Mt Marion mine and the
Kemerton lithium hydroxide plant is likely to become operational
over the coming months. This increased production amid a robust
pricing environment will lead to MinRes' lithium earnings
increasing significantly going forward.
Taking into consideration the substantial anticipated growth in
lithium, as well as continued growth in mining services, Moody's
estimates that while MinRes' gross debt/EBIDA will increase
materially from the low levels registered in recent periods under
its base forecasts, it will remain comfortably below the 3.5x
rating threshold.
Constraining MinRes' rating is its direct and indirect exposure to
movements in commodity prices. In particular, MinRes' earnings from
its current iron ore operations are materially exposed to weaker
iron ore prices due to the high unit costs and breakeven levels at
the mines. In first half fiscal 2022, this segment generated
negative EBITDA amid a sharp decline in iron ore prices and
realisations, but Moody's expects second half earnings will
substantially improve reflecting elevated iron ore prices in the
period. Based on Moody's view that iron ore prices will moderate
over the next 12-18 months towards its medium-term price
sensitivity range of USD80-125/t, the rating agency estimates that
the segment would generate modest but positive earnings supported
by some cost reduction, particularly in relation to transportation
costs.
MinRes' liquidity is good. While Moody's expects elevated capital
expenditures under its base forecasts will lead to negative free
cashflow generation over the next 12-18 months, this is well
covered by the company's sources of liquidity, including its AUD751
million cash balance and AUD400 million undrawn revolver as of
December 2021, and the proceeds from the proposed USD1 billion
senior unsecured notes issuance. Moody's also understands that
MinRes has identified several levers it can pull to shore up
liquidity if required, which include, but are not limited to,
suspending dividend payments, deferral and suspension of
discretionary capex and asset sales. The nearest debt maturity for
MinRes is January 2025 when its undrawn revolver is scheduled to
mature.
OUTLOOK
The stable outlook reflects that while MinRes' debt and capex will
likely increase materially over the next 12-18 months, credit
metrics will remain appropriate for the rating supported by
significant earnings growth. The stable outlook is also based on
Moody's expectation that MinRes will manage its investments
prudently and maintain an adequate liquidity buffer.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade is unlikely over the near term given MinRes' elevated
capex profile and increased debt. Over time, positive rating action
could be considered if MinRes successfully completes the Ashburton
project and establishes a track record of production, while
operating with a conservative financial policy.
The ratings could be downgraded if MinRes faces material
operational challenges at its mines, commodity prices underperform
Moody's expectations for a protracted period, and/or there are
material mining service contract losses. Ratings could also be
downgraded if MinRes commits to multiple growth projects that
increase funding needs beyond Moody's current expectations.
Specifically, Moody's could downgrade the ratings if: (1)
debt/EBITDA is sustained above 3.5x; (2) there is prolonged
negative free cashflow and/or its liquidity (cash and committed
undrawn credit facilities) deteriorates below AUD200 million;
and/or (3) the company demonstrates a more aggressive financial
policy than Moody's expectation.
The principal methodology used in these ratings was Mining
published in October 2021.
PROFILE
Mineral Resources Limited (ASX: MIN) is an ASX-listed company
operating across mining services, as well as mining of iron ore and
lithium minerals.
NEXT CONSTRUCTIONS: First Creditors' Meeting Set for May 5
----------------------------------------------------------
A first meeting of the creditors in the proceedings of Next
Constructions Pty Ltd, Next Contracting Pty Ltd, and Next
Contracting Group Pty Ltd, will be held on May 5, 2022, at 11:00
a.m. via teleconference only.
Sule Arnautovic and John Vouris of Hall Chadwick were appointed as
administrators of Next Constructions et al. on April 22, 2022.
OPTIMA AUSTRALIA: Second Creditors' Meeting Set for May 4
---------------------------------------------------------
A second meeting of creditors in the proceedings of Optima
Australia Solutions Pty Ltd has been set for May 4, 2022, at 11:00
a.m. at the offices of Morgan Conley, L6, 239 George Street, in
Brisbane, Queensland.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 4, 2022, at 4:00 p.m.
Morgan Conley of BCR Advisory was appointed as administrator of
Optima Australia on March 18, 2022.
YOUPLA GROUP: Leaders Urged to Help Funeral Insurer Victims
-----------------------------------------------------------
ABC News reports that more than 100 organisations have written to
the federal government requesting compensation for Indigenous
families affected by the collapse of funeral insurance provider
Youpla Group.
The insurance provider was formerly known as ACBF and went into
liquidation earlier this year, leaving thousands of customers out
of pocket and without a funeral plan, according to the report.
ABC News says bodies are being held in local morgues as families
scramble to pull money together to pay for funerals and burials,
prompting the open letter asking for government assistance.
According to the report, Veronica Johnson is a financial counsellor
at Broome CIRCLE and has been assisting former ACBF clients for the
past two years.
"I've got one client that's been sitting in a morgue since
February. They paid religiously for the past years," the report
quotes Ms. Johnson as saying. "We are waiting to see whether the
new administration can make it a priority to get these people
buried.
"It's just the most disastrous outcome that you could possibly wish
upon any families."
Daphne Naden is a Kuku Yalanji elder and director at the Indigenous
Consumer Assistance Network, one of the 125 organisations that have
written the open letter, the report says.
ABC News relates that Ms. Naden signed her and her four children
onto an ACBF policy back in the 1990s.
"It all seemed above board," she said. "I just thought
straightaway, 'It's so good to have an Aboriginal organisation
funeral fund for our mob out in the community.'"
She pulled out of the funeral fund after hearing warnings from
others.
Now, as part of the open letter, she is asking the country's
leaders to listen, the report relays.
"When a complaint goes into one of these organisations, they need
to listen," the report quotes Ms. Naden as saying. "[For years]
the government was aware, so we need to safeguard the people
against scrupulous type of organisations."
Ms. Naden is calling for a new funeral fund for Aboriginal people
but with safeguards to make sure history does not repeat itself.
David Michael Stimpson and Terrence John Rose of SV Partners were
appointed as administrators of Youpla Group on March 11, 2022.
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C H I N A
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CHINA EVERGRANDE: Unit Wins Extension for Onshore Bond Payment
--------------------------------------------------------------
Reuters reports that China Evergrande Group's flagship unit Hengda
Real Estate Group Co Ltd said its creditors have approved a
six-month extension of a CNY574 million (US$88 million) coupon
payment for an onshore bond that was due on April 27.
It is the latest of several payment extensions for Evergrande's
onshore bonds, Reuters says.
Struggling with more than $300 billion in liabilities, the giant
property developer defaulted on some payments for its offshore
bonds last year.
Onshore bondholders of Hengda's 7% 2026 bond have agreed to delay
the coupon payment to Oct. 27, Hengda said in a filing late on
April 26, Reuters relays.
Evergrande said last month it would unveil a debt restructuring
proposal for its offshore creditors by the end of July.
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.
Evergrande had CNY1.97 trillion (US$311 billion) of liabilities at
the end of June 2021. Once China's biggest developer by sales,
Evergrande fell into distress as cash dried up and the group
overstretched itself on borrowings and ventures into car
manufacturing.
Evergrande hired outside financial advisers Houlihan Lokey and
Admiralty Harbour Capital in September 2021 to engage with
creditors soon after it ran into a liquidity squeeze. It has since
worked with more advisers in the past two months by turning to
China International Capital Corp, BOCI Asia and Zhong Lun Law Firm
on its debt workout plan.
As reported in the Troubled Company Reporter-Asia Pacific in
December 2021, S&P Global Ratings lowered the issuer credit ratings
on China Evergrande Group and Tianji Holding Ltd. to 'SD' from
'CC'. S&P also lowered the issuer rating on Tianji's bonds due
2022 and 2023 to 'D' from 'C'. S&P subsequently withdrew all its
ratings on Evergrande, its subsidiary Hengda Real Estate Group Co.
Ltd., and Tianji, at the group's request.
The TCR-AP also reported that Fitch Ratings has downgraded to 'RD'
(Restricted Default), from 'C', the Long-Term Foreign-Currency
Issuer Default Ratings (IDR) of 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'.
The downgrades reflect the non-payment of coupons due Nov. 6, 2021
for Tianji's USD645 million 13% bonds and USD590 million 13.75%
bonds after the grace period lapsed on December 6. The non-payment
is consistent with an 'RD' rating, signifying the uncured expiry of
any applicable grace period, cure period or default forbearance
period following a payment default on a material financial
obligation.
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I N D I A
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AAJVETO MANUFACTURING: ICRA Withdraws B+ Rating on INR11.5cr Loan
-----------------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Aajveto Manufacturing Private Limited based on the No Objection
Certificate from the Banker and in accordance with ICRA's policy on
withdrawal and suspension. However, ICRA does not have information
to suggest that the credit risk has changed since the time the
rating was last reviewed. The Key Rating Drivers, Key Financial
Indicator, Liquidity Position, Rating Sensitivities, and the
related instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-Based-
Cash Credit 11.50 [ICRA]B+ (Stable); Withdrawn
Fund-Based-
Term Loan 19.04 [ICRA]B+ (Stable); Withdrawn
Non-fund Based–
Bank Guarantee 4.50 [ICRA]A4; Withdrawn
Incorporated in 2013, Aajveto Manufacturing Private Limited started
with the manufacturing of ceramic wall tiles and subsequently,
shifted its product profile to polished glaze vitrified tiles. The
manufacturing facility of the company is located at Morbi, in
Rajkot (Gujarat) and has an installed capacity of manufacturing 30
lakh boxes of tiles per annum currently. The company is promoted by
Mr. Pritesh Jivani and other shareholders, including his relatives
and friends, who have extensive experience in the ceramic industry.
In FY2020, the company reported a net profit of INR0.7 crore on an
operating income of INR68.2 crore compared to a net loss of INR0.4
crore on an operating income of INR51.4 crore in FY2019.
AASTHA CROPS: CARE Lowers Rating on INR9cr LT Loan to B
-------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Aastha Crops Mill Private Limited (ACMPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Short Term Bank 0.35 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated February 8,
2021, placed the rating(s) of ACMPL under the ‘issuer
non-cooperating' category as ACMPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. ACMPL continues to be noncooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated December 25, 2021, January 4,
2022, January 14, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of ACMPL have been
revised on account of non-availability of requisite information.
The ratings further consider decline in scale of operations,
profitability margins and debt coverage indicators during FY21 over
FY20.
Aastha Crops Mill Private Limited was incorporated in October 2009
with an objective to enter into the rice milling and processing
business. The manufacturing unit of the company is located at Uttar
Dinajpur district of West Bengal with an installed capacity of
34000 metric tons per annum. The company is procuring raw paddy
from the local farmers and small paddy agents. The company sells
its product under the name of "Aastha". Mr. Chhater Mal Agarwal
(Director) and Mrs. Rakhi Agarwal who have around 21 years and 18
years of experiences, respectively, in similar line of business,
are looking after the day to day operation of the company.
AIRASIA BHD: Air India Plans to Acquire AirAsia's India Unit
------------------------------------------------------------
Bloomberg News reports that Air India Ltd., which was taken over by
Tata Sons Pvt in January, has offered to acquire the entire share
capital of AirAsia India, according to a filing with the country's
anti-trust regulator.
Bloomberg relates that the proposed offer seeks to buy the residual
stake held by AirAsia Bhd., the filing on the website of the
Competition Commission of India showed. Tata Sons holds a 83.67%
stake in AirAsia India.
According to Bloomberg, the decision comes as Tata Sons is trying
to turn around Air India, which survived on taxpayer bailouts for
years. The move could help the salt-to-steel conglomerate salvage
its aviation empire, which constitutes three unprofitable carriers
now, including Singapore Airlines Ltd.'s local joint venture
Vistara.
The deal will not cause a change in the competitive landscape nor
will it have any adverse effect on competition, Tatas said in their
offer, Bloomberg relays. But the airlines will face some overlaps
in their domestic passenger and cargo services along with charter
flights.
About AirAsia
AirAsia Berhad (currently known as Capital A Bhd) provides low-cost
air carrier service. The company provides services on short-haul,
point-to-point domestic and international routes. AirAsia,
headquartered in Malaysia, operates from hubs in Malaysia,
Thailand, Indonesia, Philippines and India. The airline's Malaysia
and Thailand operations are undertaken via AirAsia Bhd and Thai
AirAsia Co Ltd while AirAsia Group's Indonesia and Philippines
operations are managed under PT Indonesia AirAsia and Philippines
AirAsia Inc.
As reported in the Troubled Company Reporter-Asia Pacific on Jan.
18, 2022, AirAsia Group Bhd (AAGB) is in the midst of formulating a
plan to regularize its financial condition to address its Practice
Note 17 (PN17) status. According to The Star, Bursa Malaysia on
Jan. 13 dismissed AAGB's appeal seeking to extend an 18-month
relief period from being classified as a PN17 company that ended on
Jan. 7, 2022.
AirAsia triggered the PN17 suspended criteria in July 2020 after
its external auditors, Ernst & Young PLT, issued an unqualified
audit opinion with material uncertainty relating to going concern
in respect of its audited financial statements for the financial
year ended Dec. 31, 2019 (FY19) and its shareholders' equity on a
consolidated basis was 50% or less of its share capital.
AirAsia also triggered the prescribed criteria pursuant to
Paragraph 8.04 and Paragraph 2.1(a) of PN17 of Bursa's Main Market
Listing Requirements (Main LR), where AirAsia's shareholders'
equity on a consolidated basis was 25% or less of its share capital
and the shareholders' equity is less than MYR40 million based on
the audited financial statements for FY20.
Following relief measures introduced by Bursa and the Securities
Commission Malaysia, AirAsia was not classified as a PN17 listed
issuer and was not required to comply with the obligations under
Paragraph 8.04 and PN17 of the Main LR for a period of 18 months
from the date of the first relief announcement, theedgemarkets.com
said. The date of the first relief announcement was July 8, 2020,
and the 18-month period ended on Jan. 7, 2022. Under the relief
measures, companies that triggered any of the suspended criteria
between April 17, 2020 and June 30, 2021, would not be classified
as a PN17 and Guidance Note 3 (GN3) company for 12 months.
ALAM CONSTRUCTIONS: CARE Lowers Rating on INR6cr LT Loan to B-
--------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Alam Constructions (AC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Short Term Bank 10.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated February 17,
2021, placed the rating(s) of AC under the ‘issuer
non-cooperating' category as AC had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. AC
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated January 3, 2022, January 13, 2022, January 23,
2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of AC have been revised
on account of non-availability of requisite information.
Alam Constructions (AC) was established in the year 1996 and
promoted by Mr. A. Venkata Narayana, Mr. E. Venkat Naryana, Mrs. A.
Visiala and Mr. A. Ranadeep. The firm is engaged in construction of
bridges and earth works for divisions of Indian Railways (IR) like
South Western Railways, Southern Railways and South-Central
Railways. The firm has current order book of INR111.26 crore to be
completed by Q1FY20.
AMBIKA SUGARS: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Shree
Ambika Sugars Limited in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 34.63 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term– 527.67 [ICRA]D; ISSUER NOT
COOPERATING;
Non Fund based Rating Continues to remain under
'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Shree Ambika Sugars Limited, is a part of the Thiru Arooran Group,
and was incorporated in 1988. Its sugar plants are based in
Cuddalore and Thanjavur districts of Tamil Nadu. It has 11,500 TCD
of cane crushing capacity, 56 MW cogeneration unit and 60 KLPD
distillery. It also has 750 TPD sugar refinery.
B. N. CIVITECH: CARE Lowers Rating on INR10cr LT Loan to C
----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
B. N. Civitech (BNC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B-; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated February 01,
2021, placed the rating(s) of BNC under the ‘issuer
non-cooperating' category as BNC had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. BNC
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated December 18, 2021, December 28, 2021 and January
7, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of BNC have been
revised on account of non-availability of requisite information.
B. N. Civitech (BNC) was constituted as a partnership firm in the
year 2007 by Mr. Jai Shankar Prasad, Mr. Uma Shankar, Mr. Binay
Shankar and Mrs. Geeta Shankar based out of Jamshedpur, Jharkhand.
Since its inception, the firm has been engaged in development of
real estate projects in the state of Jharkhand. The firm has
already developed a residential project namely Shanti Valley with
total saleable area of 1.80 lakh square feet since its inception.
In the aforesaid project, the firm has already developed three
towers which are completely sold out and currently, it is coming up
with a new tower named ‘PRAKRITIK' inside its Shanti Valley
project compound which is a residential complex. The aggregate cost
of project is estimated to be INR14.13 crore with a saleable area
of 0.83 lakh square feet. The project is located in the prime
location of Hurlung Road, Jamshedpur in Jharkhand. The total
project cost of INR14.13 crore is estimated to be funded by term
loan of INR7.55 crore, customer advances of INR2.55 crore and
balance from partners' contribution of INR4.03 crore. The firm has
already applied for the term loan and the same is under
consideration with the banker. The firm has spent around INR0.93
crore till July 31, 2018 in the aforesaid project funded through
partners' contribution.
BASIC INDIA: Liquidation Process Case Summary
---------------------------------------------
Debtor: Basic India Limited
1009, 10th Floor
New Delhi House Building
27, Barakhamba Road
Connaught Place, New Delhi
Central Delhi, Delhi 110001
IN
Liquidation Commencement Date: February 21, 2022
Court: National Company Law Tribunal, Principal Bench New Delhi
Date of closure of
insolvency resolution process: February 21, 2022
Insolvency professional: Anup Sood
Interim Resolution
Professional: Anup Sood
Flat No. 185, Block-H
5th Floor, Spangle Condos
Old Ambala Road, Gazipur
Tehsil Dera Bassi, Mohali
Sahibzada Ajit Singh Nagar
Punjab 160104
- and -
C/o Yogakshem Insolvency
Professionals LLP
53, 8th Floor
Sushma Chandigarh Infinium
Chandigarh Ambala Road
Zirakpur, Distt. Mohali
Punjab 160104
Last date for
submission of claims: March 22, 2022
BEST IT: CARE Keeps D Debt Ratings in Not Cooperating Category
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Best IT
World (India) Private Limited (BIWPL) continues to remain in the
'Issuer Not Cooperating ' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 80.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 117.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated February 5,
2021, placed the rating(s) of BIWPL under the 'issuer
non-cooperating' category as BIWPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. BIWPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated December 22, 2021, January 1,
2022, January 11, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Promoted by Mr. Sandeep Parasrampuria in 1996, Best IT World
(India) Private Limited (BIWPL) is engaged in the distribution and
marketing of computer hardware and peripherals and tablets. The
company started marketing its products under the brand 'iBall' from
2001 and continued its dominance in the "Plug and Play Device"
segment which constitutes of desk set (keyboard and mouse),
speakers, headsets, webcam, microphones, Bluetooth wireless
products, MP3 players, pen drives, pen tablets, USB products and
various assembled products such as CPU, monitors, laptops; and
mobile handsets as well as tablets. During FY11, the company
entered into the mobile handset segment and subsequently
diversified into tablet segment during FY12. Later in August 2016,
the company announced its exit from mobile business due to
competitive challenges faced by it which resulted in losses in this
segment. The company operates in mainly 5 product segments –
Computer peripherals, Networking, Audio, Tablets and Security
devices. It has pan India presence with 100 suppliers and 240
SKU's.
BEVCON WAYORS: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Bevcon
Wayors Private Limited in the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]D/[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based– 11.00 [ICRA]D ISSUER NOT COOPERATING;
Cash Credit Rating continues to remain under
'Issuer Not Cooperating'
Category
Fund Based– 2.66 [ICRA]D ISSUER NOT COOPERATING;
Term Loan Rating continues to remain under
'Issuer Not Cooperating'
Category
Non Fund Based 75.00 [ICRA]D; ISSUER NOT COOPERATING;
Rating continues to remain under
'Issuer Not Cooperating'
Category
Unallocated 8.34 [ICRA]D/[ICRA]D; ISSUER NOT
COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Bevcon Wayors Private Limited (BWPL) was incorporated in October
31, 1994 and is engaged in manufacturing of Bulk Material Handling
Products as well as providing EPC/turnkey solutions of Balance of
Plant (BOP) requirements of customers across diverse sectors such
as power, steel, cement, mining, sugar, ports, paper, pharma, FMCG,
etc. The company has its manufacturing unit in Hyderabad. The
company is currently headed by Mr Y. Srinivas Reddy, who is the
Managing Director of the company and has nearly 25 years of
experience in material handling products line of business.
BHAGIRATH ASSOCIATES: CARE Withdraws B Rating on LT Bank Loan
-------------------------------------------------------------
CARE Ratings Ltd has revised ratings from CARE B+; Stable; ISSUER
NOT COOPERATING and CARE A4; ISSUER NOT COOPERATING and withdrawn
the outstanding ratings of CARE B; Stable; ISSUER NOT COOPERATING
and CARE A4; ISSUER NOT COOPERATING and CARE A4 assigned to the
bank facilities of Bhagirath Associates (BGA) with immediate
effect.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank - Rating continues to remain
Facilities under ISSUER NOT COOPERATING
category; Revised to CARE B;
Stable; ISSUER NOT COOPERATING;
Stable; ISSUER NOT COOPERATING
and Withdrawn
Short Term Bank
Facilities - Rating continues to remain
under ISSUER NOT COOPERATING
category; Reaffirmed at
CARE A4; ISSUER NOT
COOPERATING and Withdrawn
The revision in the ratings factored in the decline in scale of
operations with net losses, leveraged capital structure and weak
debt coverage indicators. The ratings further remained constrained
due to its constitution as a partnership firm, risk inherent due to
tender driven nature of business with presence in competitive
construction industry, volatility in input prices and effect of
price escalation clause. Further, the ratings derive strength from
widely experienced partners with established track record of the
firm.
The rating withdrawal is at the request of BGA and ‘No Objection
Certificate' received from the bank that has extended the
facilities rated by CARE.
Detailed description of the key rating drivers
At the time of last rating on October 14, 2021 the following were
the rating weaknesses and strengths (updated based on information
available from client):
Key Rating Weaknesses
* Decline in scale of operations with net losses: During FY21, the
scale of operations has declined by more than 30% and remained low
at INR 17.20 crore as against INR 26.29 Crores in FY20 and INR25.52
Crores in FY19. During FY21, due to higher material costs the firm
has incurred operating losses as against profit of INR 1.40 crores
during FY20 (Profit of 3.86 crore during FY19). Consequently, the
firm has incurred net loss of INR 5.54 crore as against net profit
of INR 0.05 crore during FY20 (Net Profit of INR 1.43 crore during
FY19). Further, the company has reported net loss of INR 5.02 crore
as on March 31, 2021 as against GCA of INR 0.67 crore as on March
31, 2020 (Rs. 2.03 crore as on March 31, 2019).
* Leveraged capital structure and weak debt coverage indicators: As
on March 31, 2021, the capital structure of BGA deteriorated and
remained leveraged marked by overall gearing of 5.88 times in FY21
as against 2.28 times as on March 31, 2020 (1.69 times as on March
31, 2019) mainly on account of declined tangible net worth during
FY21. Further, the debt coverage indicators have also deteriorated
and remained weak marked by negative TDGCA ratio and interest
coverage ratio during FY21 as against 27.66 years and 0.67x
respectively during FY20 (8.88 years and 2.12x during FY20). The
decline was due to operating loss as well as cash loss during
FY21.
* Constitution as a partnership firm: BGA being a partnership firm
is exposed to inherent risk of partners' capital being withdrawn at
time of personal contingency and firm being dissolved upon the
death/retirement/insolvency of key partner. During FY21, partners
have infused capital of INR 0.53 crores as against withdrawal of
capital of INR 2.66 crore during FY20 (infusion of INR 0.25 crore
in FY19).
* Risk inherent due to tender driven nature of business with
presence in competitive construction industry: BGA participates in
the tender floated by the government for construction of roads,
bridges and canals. Hence, the business prospects are highly
dependent on the extent of government tenders floated and thus
business volume remains volatile. Also, the firm is into
construction industry, which is highly fragmented in nature with
presence of large number of unorganized players and a few large
organized players.
* Volatility in input prices and effect of price escalation clause:
The prices of the key raw materials of BGA, viz. steel, cement and
aggregates are very volatile in nature. Hence any adverse
fluctuation in the prices can adversely affect the profitability of
the firm. However, the firm is still exposed to volatile raw
material prices for the small order thereby impacting the
profitability margins of the firm.
Key rating strengths
* Widely experienced partners with established track record of the
firm: BGA was established in 1998 by Mr. Ashish Patel and Mr.
Sanjay Patel, both have more than two decades of experience in same
line of business. Due to the vast experience and history of
successful completion of many projects, the firm has developed good
reputation in the market as well as good relationship with its
suppliers and customers. Other Partners, Mr. Rajiv Patel and Mr.
Ravi Patel have experience of more than a decade in chemical
industry.
Gandhinagar (Gujarat)-based Bhagirath Associates (BGA) was
established in 1998 as a partnership firm by Mr. Ashish kumar Patel
and Mr. Sanjay kumar Patel, which is engaged into construction
services of roads & bridges and Canal. BGA secures its major
portion of tenders through open bidding from Government of Gujarat
(GoG). The company is registered as AA Class (out of scale of Class
AA to E) approved and Category-1 (which enables unlimited
tendering) contractor with Public Works Department (PWD) of GoG.
The firm has successfully completed various projects for Ahmedabad
Municipal Corporation (AMC) in the past. In April, 2018, two new
partners namely Mr. Rajiv Patel and Mr. Ravi Patel have joined the
firm.
BHRIGU INFRA PRIVATE: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: Bhrigu Infra Private Limited
Plot No. 1246, Vamsiram Jubilee Casa
Road No. 62, Lane Beside Krishna Jewellers
Jubilee Hills, Hyderabad
Telangana 500038
India
Insolvency Commencement Date: April 5, 2022
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: September 25, 2022
(180 days from commencement)
Insolvency professional: Mr. Abhinav Akkinapalli
Interim Resolution
Professional: Mr. Abhinav Akkinapalli
Flat No. 504, Mycon Acropolis Apartment
Guttala Begumpet, Kakateeya Hills
Madhapur, Hyderabad
Telangana 500081
E-mail: abhinav@aacaglobal.in
Classes of creditors: Real Estate Allottee
Insolvency
Professionals
Representative of
Creditors in a class: Mr. Murali Prasad Nalam
Mr. Adinarayana Baji Kota
Mr. Chandra Sekhar Arasada
Last date for
submission of claims: April 21, 2022
BRIJ KISHORE: CARE Keeps B- Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Brij
Kishore Prasad Exports Private Limited (BKPEPL) continues to remain
in the 'Issuer Not Cooperating ' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated February 01,
2021, placed the rating(s) of BKPEPL under the ‘issuer
non-cooperating' category as BKPEPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. BKPEPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated December 18, 2021, December
28, 2021 and January 7, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Brij Kishore Prasad Exports Private Limited (BKPEPL) was
incorporated in 2008 by Mr. Rahul Raj Prasad and Mrs. Saraswati
Prasad based out of Siliguri, West Bengal. The company exports food
grains such as rice, pulses, flour, mustard oil cake, coal,
soyabeans etc. to Bangladesh only. BKPEPL procures its traded goods
mainly from Uttar Pradesh, Bihar and West Bengal etc.
CHD DEVELOPERS: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of CHD
Developers Limited (CDL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 235.30 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Fixed Deposit 38.15 CARE D (FD); ISSUER NOT
COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Fixed Deposit 7.37 CARE D (FD); ISSUER NOT
COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated December 4, 2019 placed the
ratings of CDL under the 'issuer non-cooperating' category as CDL
had failed to provide information for monitoring of the rating. CDL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated April 18, 2022, April 13, 2022, April 12, 2022.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. Further all bankers could not be contacted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The rating has been assigned by taking into account
non-availability of information and no due-diligence conducted due
to noncooperation by CDL with CARE'S efforts to undertake a review
of the rating outstanding. CARE views information availability
risk
as a key factor in its assessment of credit risk. Further, the
ratings continue to remain constrained owing by delays in servicing
of debt obligations.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Delays in servicing of debt obligations: There have been delays
in debt servicing towards bankers as well as to the FD holders by
CHD Developers on account of stretched liquidity position of the
company.
Analytical Approach: Consolidated
For arriving at the ratings, CARE has combined the business and
financial risk profiles of CHD Developers Limited and its nine
subsidiaries namely, CHD Facility Management Pvt. Ltd., CHD Infra
Projects Pvt. Ltd., CHD Blueberry Realtech Pvt. Ltd., CHD Elite
Realtech Pvt. Ltd., Delight Spirits Pvt. Ltd., International
Infratech Pvt. Ltd., Empire Realtech Pvt. Ltd., CHD Hospitality
Pvt. Ltd. and Golden Infracon Pvt. Ltd. All the entities have a
common management team and are in the same line of business.
CHD Developers Limited (CHD) incorporated in 1990, is promoted by
Mr. Rajinder Kumar Mittal (Chairman), having more than three
decades of experience in the real estate industry. CHD is listed on
Bombay Stock Exchange (BSE) since 1995. The company is engaged in
development of real estate (residential and commercial) in the
National Capital Region (NCR) including Karnal, Gurgaon and Sohna
(Haryana). The company has long-standing presence and established
brand in Gurgaon and Karnal. In the past, the company has completed
several residential and commercial real estate projects with total
saleable area of 54.92 lsf.
COASTAL ENERGEN: ICRA Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Coastal
Energen Private Limited in the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]D/[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based– 1150.00 [ICRA]D ISSUER NOT COOPERATING;
Cash Credit Rating continues to remain under
'Issuer Not Cooperating'
Category
Fund Based– 6113.79 [ICRA]D ISSUER NOT COOPERATING;
Term Loan Rating continues to remain under
'Issuer Not Cooperating'
Category
Long Term- 465.20 [ICRA]D; ISSUER NOT COOPERATING;
Non Fund Based Rating continues to remain under
'Issuer Not Cooperating'
Category
Unallocated 25.21 [ICRA]D; ISSUER NOT COOPERATING;
Rating continues to remain under
'Issuer Not Cooperating'
Category
Short Term- 40.00 [ICRA]D; ISSUER NOT COOPERATING;
Non Fund Based Rating continues to remain under
'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
CEPL is a special purpose vehicle (SPV) promoted by Mr. Ahmed
Buhari (promoter of the Coal & Oil Group) for the development of a
1200-MW imported coal-based thermal power plant at Tuticorin in
Tamil Nadu. The Coal & Oil Group is a Dubai-based energy
conglomerate that operates as an integrated fuel solution provider
with interests in coal trading, technical consultancy for fuel
sourcing, handling, shipping, logistics etc. The flagship company
of the Group is Coal & Oil Company DMCC (C&O). The total project
cost for CEPL of INR7,870 crore was funded through a debt to equity
ratio of 80:20. Its unit-1 contributing to 600-MW power commenced
operations from December 2014 and unit-2 from January 2016.
COROMANDEL AGRICO: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Coromandel Agrico Private Limited
E9, Industrial Area
Sikandrabad, Bulandshahr
Uttar Pradesh 203205
Insolvency Commencement Date: April 19, 2022
Court: National Company Law Tribunal, Ghaziabad Bench
Estimated date of closure of
insolvency resolution process: October 16, 2022
Insolvency professional: Sushil Kumar Singhal
Interim Resolution
Professional: Sushil Kumar Singhal
A-3/504 Krishna Apra Gardens
Plot no. 7, Vaibhav Khand
Indirapuram, Ghaziabad
UP 201014
E-mail: sksinghal66@gmail.com
- and -
532, 5th Floor, Somdatt Chamber-II
Bhikaji Cama Place
New Delhi 110066
E-mail: coromandel.cirp@gmail.com
Last date for
submission of claims: May 3, 2022
DIVYA JYOTI: CARE Keeps B Debt Rating in Not Cooperating
--------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Divya Jyoti
Agritech Private Limited (DJAPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.50 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Short Term Bank 5.50 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated February 3,
2021, placed the rating(s) of DJAPL under the 'issuer
non-cooperating' category as DJAPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. DJAPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated December 20, 2021, December
30, 2021 and January 9, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution
while using the above rating(s).
Indore-based (Madhya Pradesh) Divya Jyoti Agritech Private Limited
(DJAPL) was incorporated in 2003 and is headed by its key
directors; Mr. Alok Gupta and Mr. Mohit Airen. The company is
primarily engaged in manufacturing and trading of organic manure,
Vermi-compost, Porm (Phosphate Organic manure), di-compost and
seed-manufacturing (Soya bean and Wheat certified seeds).
ESSEL WALAJAHPET: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Essel
Walajahpet Poonamallee Toll Roads Private Limited (EWPTRPL)
continues to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 164.17 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated January 27,
2021, placed the rating(s) of EWPTRPL under the 'issuer
non-cooperating' category as EWPTRPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. EWPTRPL continues to be non-cooperative despite
repeated requests for submission of information through email dated
December 13, 2021, December 23, 2021, January 2, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
EWPTRPL is a special purpose vehicle (SPV) incorporated on May 18,
2012, by EIL. EIL has been awarded the four to six laning of the
Poonamallee (Km 13/8) Walajahpet (Km 106/8) section of NH4 in the
state of Tamil Nadu by National Highway Authority of India (NHAI)
under design build finance operate and transfer (DBFOT) basis
covering a length of approximately 93.00 km.
ETHELBARI TEA: ICRA Moves B+ Debt Rating to Not Cooperating
-----------------------------------------------------------
ICRA has moved the ratings for the bank facilities of The Ethelbari
Tea Company (1932) Ltd (TETCL) to the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]B+ (Stable)/A4 ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based– 5.50 [ICRA]B+(Stable) ISSUER NOT
Working Capital COOPERATING; Rating moved to
Facilities 'Issuer Not Cooperating'
Category
Non-Fund-based– 0.10 [ICRA]A4 ISSUER NOT
Bank Guarantee COOPERATING; Rating moved to
the 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity. The
rating action has been taken in accordance with ICRA's policy in
respect of non-cooperation by a rated entity available at
www.icra.in.
Incorporated in 1932, The Ethelbari Tea Company (1932) Ltd. (TETCL)
has long track record of operations and it is currently led by Mr.
Mahendra Patel and his family. TETCL is engaged in the
manufacturing of crush tear and curl (CTC) variety of black tea.
The company has two gardens, Ethelbari and Sarugaon tea estate,
located in the Alipurduar district of North Bengal.
FUTURE GROUP: Flagship to Face Insolvency Proceedings
-----------------------------------------------------
The Economic Times of India reports that lenders will soon initiate
insolvency proceedings against Future Enterprises Ltd (FEL), the
linchpin company of Future Group, which manufactures, designs,
procures and distributes fashion apparel for the group companies,
said two people aware of the development.
ET relates that the collapse of the INR24,712 crore deal with
Reliance Industries and defaults on a series of payments to lenders
in the last week of March as per the terms of one-time
restructuring (OTR) prompted lenders to pursue insolvency
proceedings, the people said.
The company has outstanding debt of INR6,880 crore as of Jan. 31,
2022. Lead bank Central Bank of India will seek technical and
financial bids from resolution professionals for FEL sometime next
week, the report relays.
FEL has defaulted on INR2911.5 crore payments to lenders between
March 23 and March 31, ET discloses citing stock exchange
disclosures.
About Future Group
Future Group operates multi-branded retail outlets. The company's
retail chains include department stores, outlet stores, sportswear,
home improvement and consumer durables, supermarket, and
convenience stores as well as food parks.
Cash-strapped Future Group owes around INR19,000 crore to banks and
INR6,000 crore to the vendors. Future Retail Limited owes INR6,278
crore debt with 28 banks, including SBI, Union Bank, Bank of India,
Bank of Baroda, Axis Bank, and IDBI Bank, among others.
Future, India's second-largest retailer, has sought to complete its
$3.4 billion retail asset sale to Reliance Retail since 2020. The
Indian Supreme Court has upheld the Singapore Emergency
Arbitrator's award against Reliance Retail's takeover of Future
group companies.
FUTURE RETAIL: S&P Lowers Rating on $500MM Secured Notes to 'CC'
----------------------------------------------------------------
S&P Global Ratings lowered its rating on the India-based retailer
Future Retail Ltd.'s US$500 million senior secured notes to 'CC'
from 'CCC-'. The issuer credit rating remains 'SD' given the
continuing default on the onshore bank borrowings.
S&P lowered the rating on Future Retail's US$500 million senior
secured notes because it views default as a virtual certainty. The
termination of the proposed sale of assets to RRVL has magnified
the risk of a default on the next coupon payment on the rated
notes, and of the initiation of bankruptcy proceedings against the
company.
The risk of Future Retail missing the next coupon on the notes due
on July 22, 2022, has increased significantly. Future Retail's
liquidity position remains weak. The company reported an EBITDA
loss of about Indian rupee (INR) 10.5 billion over the nine-month
period ending Dec. 31, 2021. S&P expects operating losses to
increase further in view of store closures starting earlier this
year when the company failed to service its lease obligations. In
such a scenario, S&P expects the company's INR1 billion (about
US$13 million) of cash and cash equivalents as on Sept. 30, 2021,
to have eroded materially.
Future Retail also faces the risk of an accelerated repayment of
its senior notes. Under the notes' covenants, principal and unpaid
interest on the notes become automatically due and payable if any
bankruptcy proceedings initiated against the company remain
undismissed for 60 consecutive days, or if the company consents to
the liquidation. Bank of India has already filed an application
with the National Company Law Tribunal in this regard earlier this
month.
ESG credit indicators: E-2, S-3, G-5
G.R. FABRICS: CARE Withdraws B+ Rating on Long Term Debt
--------------------------------------------------------
CARE Ratings Ltd. has reaffirmed and withdrawn the outstanding
ratings of CARE B+; Stable; INC/ CARE A4; INC assigned to the bank
facilities of G.R. Fabrics Private Limited (GRF) with immediate
effect. The above action has been taken at the request of GRF and
'No Objection Certificate' received from the bank that have
extended the facilities rated by CARE Ratings Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank - Rating continues to remain
Facilities under ISSUER NOT COOPERATING
category; Reaffirmed at
CARE B+; Stable; ISSUER NOT
COOPERATING and Withdrawn
Short Term Bank
Facilities - Rating continues to remain
under ISSUER NOT COOPERATING
category; Reaffirmed at
CARE A4; ISSUER NOT
COOPERATING and Withdrawn
Detailed description of the key rating drivers
Key Rating Weakness
* Modest scale of operations and profitability: The scale of the
operations of the company decreased by 79% and remained modest
marked by Total Operating Income (TOI) at INR4.46 crore in FY21 as
against INR21.03 crore in FY20. The profitability margins of the
company have continued to remain moderate marked by PBILDT and PAT
margins of 33.49% and 0.21% respectively in FY21 as against 8.08%
and 0.06% respectively in FY20.
* Leveraged capital structure and weak debt coverage indicators:
The capital structure of the company deteriorated and continues to
remain leveraged marked by overall gearing of 3.15 times as of
March 31, 2021 as against 2.78 times as on March 31, 2020. The debt
coverage indicators also deteriorated and remained weak marked by
total debt to GCA of 28.62 times as of March 31, 2021 as against
21.14 times as on March 31, 2020. The interest coverage ratio also
remained weak at 1.40 times in FY21 as against 1.42 times in FY20
* Presence in a highly competitive and fragmented textile industry
and vulnerability of margins to fluctuation in raw material prices:
GRF has presence in the textile industry which is highly fragmented
and competitive with presence of numerous independent small-scale
enterprises owing to low entry barriers leading to high level of
competition. Smaller companies are more vulnerable to intense
competition and have limited pricing flexibility, which constrains
their profitability as compared to larger companies who have better
efficiencies and pricing power considering their scale of
operations. Also, the prices of yarn are fluctuating in nature and
hence, the profitability.
Key Rating Strength
* Experienced and qualified management and group support: Mr.
Girraj Kishore Goyal, one of the key promoters of GRF has more than
four decades of experience and looks after the overall affairs of
the company. He is supported by Mr. Brajesh Goyal, Director, who
has 25 years of experience in the industry. Further, the promoters
are supported with the experienced second-tier management which
include; Mr. M.L Sharma who looks after production and factory
department, Mr. Praduman who looks after marketing department, Mr.
Arpit Jain, Chartered Accountant by qualification who looks after
accounts and finance function of the company. They are supported by
a team of qualified and skilled employees. Further, the company
also gets support in the form of established marketing and sales
network, from its other group concerns, namely G.R Weavers Private
Limited (GRW) and Shree Vallabbh Agencies which is engaged in the
business of manufacturing of PP woven bags and trading of cloth and
fabrics. Further the company sells one of its products - Multi
filament yarn to its group concern G.R Weavers Private Limited.
* Established track record of operations with established client
base: GRF was incorporated in the year 1987 and hence, has a track
record of more than three decades in the industry having
established relationship with its customers and suppliers. The
company is empanelled for supplying uniforms fabrics to Central
Police Canteen, Para Military forces and Border Security Force
across India. Further, the company offers diversified types of
fabrics including synthetic and Khadi according to the requirement
of the national armed forces. GRF purchases fabrics from GRW and
then process its further, post which it sells Multifilament yarn to
GRW.
Gwalior (Madhya Pradesh) based G.R. Fabrics Private Limited (GRF)
was incorporated in 1987 by Mr. Brajesh Goyal along with other
family members. GRF is engaged in the manufacturing and processing
of all types of fabrics such as synthetics and khadi etc. It also
gets the work done on job work basis. The plant of GRF is located
at Banmore, Madhya Pradesh and has 8 sulzer looms with total
installed capacity of 12 lakh metres per annum as on March 31,
2021. Further from June, 2018, it has commenced manufacturing of
Multifilament yarn and BCS printed woven fabric and bags.
GREEN POWER: ICRA Reaffirms D Rating on INR26.79cr Term Loan
------------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of Orient
Green Power Company Limited (OGPCL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 26.79 [ICRA]D; reaffirmed
Term Loan
Rationale
The reaffirmation of the rating takes into consideration the delays
in servicing the debt obligations guaranteed by OGPCL. While ICRA
notes that OGPCL is servicing the debt on its standalone balance
sheet in a timely manner, there have been delays in servicing the
debt guaranteed by OGPCL to its subsidiaries, which hold the wind
power assets. The credit profile of the company is constrained by
the subdued operating performance of the wind assets under its
subsidiaries, coupled with delays in receiving payments for the
capacity exposed to distribution utilities (discoms) in Andhra
Pradesh (AP). While the recent directive by the High Court of
Andhra Pradesh (AP) issued on March 15, 2022, ordering state
discoms to honour the terms of the power purchase agreements (PPA)
signed with the wind & solar power developers and clear the pending
payments is a positive development for the affected developers, the
timely implementation of the same remains to be seen.
The rating further takes into consideration the company's modest
financial risk profile, characterised by weak debt protection
metrics and a leveraged capital structure. The rating also remains
constrained by the vulnerability of cash flows to the variation in
wind power density, given the single part tariff under the power
purchase agreements (PPAs). ICRA, however, continues to take note
of the established presence and the reasonable track record of the
company's operations in the renewable power segment, with an
installed capacity of 417 MW in the wind power division, having
PPAs with state distribution utilities and industrial customers.
Key rating drivers and their description
Credit strengths
* Established presence in renewable power segment: OGPCL has an
established presence in the renewable power segment, with an
installed operational capacity of 417 MW wind power projects.
Credit challenges
* Delays in guaranteed debt repayment obligations: There have been
continued instances of delays in servicing the debt guaranteed by
OGPCL for its SPVs. The credit profile of the company is
constrained by the subdued operating performance of the wind assets
under its subsidiaries coupled with delays in receiving payments
from discoms and customers, leading to cashflow mismatch. However,
at a standalone level, the debt servicing by OGPCL is on time.
* Financial profile characterized by leveraged capital structure
and weak debt coverage indicators: Given the debt funded capex
undertaken over the years, the company's gearing level continues to
remain high. The debt service coverage indicators (consolidated) of
OGPL remain modest with interest coverage of 1.2 times and DSCR of
0.7 times for FY2021.
* Cash flows vulnerable to variation in wind speed: Variability in
wind speed may affect PLF levels and actual electricity generation,
thereby leading to volatility in revenues and cash flows.
Liquidity position: Poor
The liquidity of the company remains poor as reflected in the
delays in repayment of debt obligation guaranteed by the company.
The liquidity position at the consolidated level is constrained by
high interest burden and sizeable debt repayment obligations.
Further, subdued operating performance coupled with delays in
receiving payments from AP discom has led to cash flow mismatch and
delays in debt servicing. While the recent directive by the Andhra
Pradesh (AP) High Court on March 15, 2022 ordering state discoms to
honour the terms of the PPAs and clear the pending payments is a
positive, the timely implementation of the same remains to be
seen.
Rating sensitivities
Positive factors – An improved liquidity position enabling the
company to regularise debt servicing on a sustained basis could
prompt an upward rating revision.
OGPCL, incorporated in 2006, is into renewable power generation
with focus on wind and biomass power segments. As on March 31,
2021, the company had an installed capacity of 417 MW of wind power
plants across Tamil Nadu, Andhra Pradesh, Gujarat, Karnataka and
Europe. OGPCL is promoted by SVL Limited (Shriram Group) and is
listed on both the BSE and the NSE.
HYDERABAD RING: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Hyderabad
Ring Road Project Private Limited (HRRPPL) continues to remain in
the 'Issuer Not Cooperating ' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 185.11 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated February 1,
2021, placed the rating(s) of HRRPPL under the 'issuer
non-cooperating' category as HRRPPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. HRRPPL continues to be non-cooperative despite
repeated requests for submission of information through email dated
December 18, 2021, December 28, 2021, January 7, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Hyderabad Ring Road Project Private Limited (HRRPPL) is a special
purpose vehicle (SPV) promoted by consortium of Era Infra
Engineering Limited and Induni CIE SA, for executing and operating
an 8-lane expressway (Narsingi to Kollur from km 0.00 to km 12.00
package) under Phase II of Outer Ring Road project of Hyderabad
Growth Corridor Limited (HGCL, in which 74% stake is held by
Hyderabad Metropolitan Development Authority (HMDA)) on Build
Operate Transfer (BOT Annuity) basis.
ICED DESSERTS: ICRA Withdraws D Rating on INR15cr Term Loan
-----------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Iced Desserts & Food Parlours (India) Private Limited at the
request of the company and based on the No Due Certificate (NDC)
received from its banker. However, ICRA does not have information
to suggest that the credit risk has changed since the time the
rating was last reviewed. The Key Rating Drivers, Liquidity
Position, Rating Sensitivities, Key financial indicators have not
been captured as the rated instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 15.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund Based- Withdrawn
Term Loan
ICED was established in 1994 and is a part of the N. R. Group of
Companies promoted by Mr. Neeraj Rawal. The company was engaged in
Super Distributorship of Kingfisher beer brand of UBL for entire
Maharashtra except Mumbai. The company has two warehouses situated
in Aurangabad and Ambarnath having capacity of 50,000 and 80,000
cases respectively. With effect from April 1, 2016, ICED have be
appointed as a Commission Agent by United Breweries Ltd which is
change from earlier role as Super distributors for the region of
Maharashtra except Greater Mumbai. Hence since this change there
would be no sales and purchases in their books of account and they
would get only commission income once a month.
INDO GLOBAL SOFT: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Indo Global Soft Solutions and Technologies
Private Limited
Radius Tech Park, Plot no. 41
Rajiv Gandhi Infotech Park, Phase 1
MIDC, Hinjawadi
Pune, Maharashtra 411057
Insolvency Commencement Date: April 20, 2022
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: October 9, 2022
(180 days from commencement)
Insolvency professional: Mr. Shailen Shah
Interim Resolution
Professional: Mr. Shailen Shah
B S R R & Co
2nd Floor, Lodha Excelus
Apollo Mills Compound
N M Joshi Marg, Mahalaxmi
Mumbai City, Maharashtra 400011
E-mail: shailenshah@bsraffiliates.com
indoglobalirp@bsraffiliates.com
Last date for
submission of claims: May 4, 2022
JCC INFRATECH: CARE Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of JCC
Infratech Private Limited (JIPL) continues to remain in the 'Issuer
Not Cooperating ' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Short Term Bank 6.75 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated February 18,
2021, placed the rating(s) of JIPL under the 'issuer
non-cooperating' category as JIPL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. JIPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated January 4, 2022, January 14, 2022, January 24,
2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
JCC Infratech Private Limited (JIPL) was incorporated in 2011 by
three directors namely Mr. Shekher Jain, Mr. Nirjhar Jain and Mrs
Shikha Jain. The company merged its group concern i.e. Jayana
Construction Company on April 1, 2014. Jayana Construction Company
was a proprietorship concern established in 1982. The company is
engaged into civil construction and contracting business and has
executed several projects in Haryana and Rajasthan region. The
company is a grade "A" contractor and undertakes civil construction
contracts including road construction, maintenance etc. for state
government. The company receives the orders mainly through tenders
and the tenure of the contracts range from 6 month - 12 month. The
company procures raw materials i.e. grits, stones etc. from private
dealers. Additionally, the equipment and machines are owned by the
company.
JML MARKETINGS PRIVATE: Insolvency Resolution Process Case Summary
------------------------------------------------------------------
Debtor: J.M.L. Marketings Private Limited
C-13, U.P.S.I.D.C.
Industrial Area
Naini, Allahabad
Uttar Pradesh 211010
Insolvency Commencement Date: April 19, 2022
Court: National Company Law Tribunal, Allahabad Bench
Estimated date of closure of
insolvency resolution process: October 15, 2022
Insolvency professional: Mr. Shailesh Verma
Interim Resolution
Professional: Mr. Shailesh Verma
E1004, Vijaya Apartments
Mall Road, Ahinsa Khand 2
Near Shanti Gopal Hospital
Indirapuram, Ghaziabad
Uttar Pradesh 201014
E-mail: shailesh3108@gmail.com
- and -
Deloitte India Insolvency
Professionals LLP, 7th Floor
Building 10, Tower B
DLF Cyber City, Phase-II
Gurugram, Haryana 122002
E-mail: injmlip@deloitte.com
shaiverma@deloitte.com
Last date for
submission of claims: May 2, 2022
KARVIN CUISINES: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: M/s. Karvin Cuisines Private Limited
1/2, Jawarlal Nehru Salai
Ambal Nagar, Ekkatuthangal
Chennai TN 600015
IN
Insolvency Commencement Date: April 21, 2022
Court: National Company Law Tribunal, Chennai Bench
Estimated date of closure of
insolvency resolution process: October 17, 2022
Insolvency professional: Dr. CA Madurai Sundram Sankar
Interim Resolution
Professional: Dr. CA Madurai Sundram Sankar
A 1206 S&S Sarvam, 200 Feet
Pallavaram Thuraipakkam Radial Road
Pallikaranai, Chennai 600100
E-mail: m.s.sankar@outlook.com
karvinirp@gmail.com
Last date for
submission of claims: May 4, 2022
LINAKS MICRO: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Linaks Micro Electronics Limited
12.06 KM Barabanki Road
Chinat, Lucknow
Uttar Pradesh 227105
India
Insolvency Commencement Date: April 22, 2022
Court: National Company Law Tribunal, Uttar Pradesh Bench
Estimated date of closure of
insolvency resolution process: October 19, 2022
Insolvency professional: Bhoopesh Gupta
Interim Resolution
Professional: Bhoopesh Gupta
645A/533B, Janki Vihar Colony
Sector I, Prabhat Chauraha
Jankipuram, Lucknow
Uttar Pradesh 226031
E-mail: cabhoopesh@rediffmail.com
- and -
AVM Resolution Profesionals LLP
8/28, 3rd Floor, W.E.A.
Abdul Aziz Road
Karol Bagh, New Delhi 110005
E-mail: cirp.linaks@avmresolution.com
Last date for
submission of claims: May 6, 2022
MHOW GHATABILLOD: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Mhow
Ghatabillod Toll Roads Private Limited (MGTRPL) continues to remain
in the 'Issuer Not Cooperating ' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 200.10 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated January 29,
2021, placed the rating(s) of MGTRPL under the 'issuer
non-cooperating' category as MGTRPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. MGTRPL continues to be non-cooperative despite
repeated requests for submission of information through email dated
December 15, 2021, December 25, 2021, January 4, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Mhow Ghatabillod Toll Roads Private Limited is a special purpose
vehicle (SPV) promoted by Essel Infra projects Limited (EIL) and
group entities for four laning of the Mhow Ghatabillod section (on
SH-27) from km 1.500 to km 28.500 in the state of Madhya Pradesh on
a design, build, finance, operate and transfer (DBFOT) toll basis.
MUKARBA CHOWK-PANIPAT: CARE Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Mukarba
ChowK-Panipat Toll Roads Limited (MCPTRL) continues to remain in
the 'Issuer Not Cooperating ' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 1,375.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated January 29,
2021, placed the rating(s) of MCPTRL under the 'issuer
non-cooperating' category as MCPTRL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. MCPTRL continues to be non-cooperative despite
repeated requests for submission of information through email dated
December 15, 2021, December 25, 2021, January 4, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
MCPTRL is a special purpose vehicle (SPV) incorporated in August
2015 and a wholly owned by EIL. EIL has been awarded the project
for carrying out eight laning from existing 6/8 lane of Mukarba
Chowk (Km 15.5) to Panipat section (Km 86.0) of NH 1 in the state
of Haryana under National Highways Development Project (NHDP) phase
IV by National Highways Authority of India under design, build,
finance, operate and transfer (DBFOT) – toll basis covering a
length of approximately 70 kilometer (km). During FY16, due to
change in design from concretization to Bitumen has reduced total
estimated project cost from INR2,343 crores to INR2,122 crore,
which will be funded through a DER of 1.84:1 (Debt of Rs 1375
crores and equity of INR558 crore along with NHAI grant of Rs189
crore). The project was awarded to MCPTRL based on a lowest grant
of INR189 crore quoted by EIL.
NACHIAPPAN K: CARE Lowers Rating on INR7.75cr LT Loan to B-
-----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Nachiappan K (NK), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.75 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated February 18,
2021, placed the rating(s) of NK under the 'issuer non-cooperating'
category as NK had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. NK continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
January 4, 2022, January 14, 2022, January 24, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of NK have been revised
on account of non-availability of requisite information.
K Nachiappan is a proprietor of M/s. E.K.N. Poultry Farm (EKNPF).
He established EKNPF in the year 1984, in Namakkal District which
is popular for poultry activities in south India. The firm engaged
in farming egg, cull birds and manure. Currently the firm has 60000
chicks, 60000 grower and 280000-layer birds. The firm has the
capacity to produce 224000 eggs per day.
PERMALI WALLACE: ICRA Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Permali
Wallace Private Limited in the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]D/[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based– 12.00 [ICRA]D ISSUER NOT COOPERATING;
Cash Credit Rating continues to remain under
'Issuer Not Cooperating'
Category
Fund Based– 41.23 [ICRA]D ISSUER NOT COOPERATING;
Term Loan Rating continues to remain under
'Issuer Not Cooperating'
Category
Non-Fund-based 10.00 [ICRA]D; ISSUER NOT COOPERATING;
limit/Letter of Rating continues to remain under
Credit 'Issuer Not Cooperating'
Category
Non-Fund-based/ 3.25 [ICRA]D; ISSUER NOT COOPERATING;
Bank Guarantee Rating continues to remain under
'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Permali Wallace Private Limited (PWPL) was established in 1961 in
technical and financial collaboration with Permali Limited,
Gloucester, U.K. and Chase Lowe & Co., Manchester, U.K. The company
started as a manufacturer of wood based densified impregnated
laminates for industrial and engineering applications and expanded
its products range to include veneer based components, glass
reinforced composites, sheet moulding compounds (SMC), dough
moulding compounds (DMC), moulded components, epoxy resin castings,
etc.
QUADSEL SYSTEMS: CARE Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Quadsel
Systems Private Limited (QSPL) continues to remain in the 'Issuer
Not Cooperating ' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.35 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 3.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated February 3,
2021, placed the rating(s) of QSPL under the 'issuer
non-cooperating' category as QSPL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. QSPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated December 20, 2021, December 30, 2021, January 9,
2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Quadsel Systems Private Limited (QSPL) is a Chennai-based company
which was incorporated in the year 1995 by Mr. Girish Madhavan
(Managing Director) and other 3 directors. Later in the year 1998,
the constitution of QSPL changed and the current directors are Mr.
Girish Madhavan and Mrs. Dhanamani Madhavan. The registered office
of QSPL is located at Chennai, whereas the company has branches in
Hyderabad, Kerala and Bengaluru. QSPL is engaged in the business of
IT Infrastructure i.e., software development and various IT
services such cloud management, network management, printing
services, DBMS, ERP's etc., providing end to end solutions and
products and services to various organizations. DSPL is an ISO
9001:2015 Certification and ISO 27001:2013 Certification certified
company. QSPL is a dealer and channel partner of HewlettPackard,
Microsoft, and DELL etc.
RADHAMADHAV AUTOMOBILES: CARE Cuts Rating on INR70.87 LT Loan to D
------------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Radhamadhav Automobiles Private Limited (RAPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 70.87 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE B+; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated May 5, 2021,
placed the rating(s) of RAPL under the 'issuer non-cooperating'
category as RAPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. RAPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/emailed at
March 21, 2022, March 31, 2022, April 10, 2022, April 22, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of RAPL have been
revised on account of on-going delays in debt servicing recognized
from publicly available information i.e. lender's feedback.
Radhamadhav Automobiles Private Limited (RAPL) belongs to Radha
Group Toyota of Vijayawada, Andhra Pradesh established in 1964 as a
trading organization. Radha Group Toyota is engaged in the business
of sales and service of passenger vehicles o f Toyota Kirloskar
Motors Pvt Limited (TKML) and it is an authorized dealer of TKML.
The group was promoted by Mr. M Subrahmanyam (Chairman), who has
more than five decades of experience in trading and more than two
decades of experience in automobile industry. Mr. M Srinivas
(Managing Director) has more than two decades of experience in
automobile industry. The group comprises of four automobile
companies namely Radha Krishna Automobiles Private Limited, Radha
Madhav Automobiles Private Limited, Leela Krishna Automobiles
Private Limited and Yashoda Krishna Automobiles Private Limited
located in Andhra Pradesh and Telangana. These four companies are
in to similar line of business catering to Different regions in
both states. RAPL and LKAPL are operating in the state of Andhra
Pradesh, whereas RKAPL an d YKAPL are operating in the state of
Telangana with a total of 15 showrooms in both the states.
SARADAMBIKA POWER: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Saradambika Power Plant Pvt. Ltd.
Plot No. 15, Radha Krishna Nagar Colony
Near Konna Street
Opp. PSNMH School
Srikakulam AP 532001
IN
Insolvency Commencement Date: April 18, 2022
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: October 15, 2022
(180 days from commencement)
Insolvency professional: Charudutt Pandhrinath Marathe
Interim Resolution
Professional: Charudutt Pandhrinath Marathe
Gomed, 915, Khare Town
Dharampeth, Nagpur 440010
E-mail: charuduttm@yahoo.co.in
charuduttm@angelpro.co.in
Last date for
submission of claims: May 2, 2022
SESA MINERALS: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Sesa
Minerals Limited in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based– 35.00 [ICRA]D ISSUER NOT COOPERATING;
Cash Credit Rating continues to remain under
'Issuer Not Cooperating'
Category
Fund Based– 20.00 [ICRA]D ISSUER NOT COOPERATING;
FDBP/FUDBP Rating continues to remain under
'Issuer Not Cooperating'
Category
Fund Based– (15.80) [ICRA]D ISSUER NOT COOPERATING;
Packing Rating continues to remain under
Credit 'Issuer Not Cooperating'
Category
Non-Fund based– (20.00) [ICRA]D; ISSUER NOT
COOPERATING;
Letter of Credit Rating continues to remain under
'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in 2007, SML trades in steel products such as iron ore
pellets, steel scrap, sponge iron, steel billets, wire rods, angle,
channel, round and TMT bars. The company mainly operates in West
Bengal, however, it has commenced exports to Nepal, Bangladesh etc.
in FY2019.
SOUBHAGYA LAXMI: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Soubhagya Laxmi Sugars Limited
211/2B, Plot No. 4 Falls Road
Gokak Karnataka 591307
Insolvency Commencement Date: April 22, 2022
Court: National Company Law Tribunal, Bengaluru Bench
Estimated date of closure of
insolvency resolution process: October 4, 2022
Insolvency professional: Kondisetty Kumar Dushyantha
Interim Resolution
Professional: Kondisetty Kumar Dushyantha
No. 404/2, 7th Main, 9th Main
2nd Block, Jayanagar
Bengaluru 560011
E-mail: dushyanthak@gmail.com
slscirp@gmail.com
Last date for
submission of claims: May 6, 2022
SPRINT ADVISORY: Voluntary Liquidation Process Case Summary
-----------------------------------------------------------
Debtor: Sprint Advisory Services Private Limited
Knowledge House, Shyam Nagar
Jogeshwari-Vikhroli Road
Jogeshwari (E), Mumbai
Maharashtra 400060
India
Liquidation Commencement Date: March 24, 2022
Court: National Company Law Tribunal, Bangalore Bench
Insolvency professional: Kondisetty Kumar Dushyantha
Interim Resolution
Professional: Kondisetty Kumar Dushyantha
# 404/2, 7th Main, 9th Cross
Jayanagar II Block
Bangalore 560011
E-mail: dushyanthak@gmail.com
Tel: 08026560400
Last date for
submission of claims: April 22, 2022
SRABANI CONSTRUCTIONS: Insolvency Resolution Process Case Summary
-----------------------------------------------------------------
Debtor: Srabani Constructions Private Limited
Plot No. 1185, Balitota Sahi
Nayapalli, Bhubaneswar
Khordha, Odisha 751012
Insolvency Commencement Date: April 21, 2022
Court: National Company Law Tribunal, Cuttack Bench
Estimated date of closure of
insolvency resolution process: October 17, 2022
Insolvency professional: Sri Chaitanya Kumar Ray
Interim Resolution
Professional: Sri Chaitanya Kumar Ray
MIG-26, Manarama Estate
Rasulgarh, Bhubaneswar 751010
Odisha
E-mail: cma.chaitanya@yahoo.com
Last date for
submission of claims: May 6, 2022
SUPERSONIC DEALCOM: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Supersonic Dealcom Private Limited
10/1/1C, Kalakar Street, 2nd FLoor
Kolkata WB 700007
IN
Insolvency Commencement Date: April 20, 2022
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: October 17, 2022
Insolvency professional: Mr. Debasis Bhattacharya
Interim Resolution
Professional: Mr. Debasis Bhattacharya
Flat No. 9C4, Aria-4
Greenwood Elements, Rajarhat
New Town, North Twenty Four
Parganas, West Bengal 700156
E-mail: debasis5457@gmail.com
ip.supersonicdealcom@gmail.com
Last date for
submission of claims: May 4, 2022
TIERRA FARM: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Tierra Farm Asset Company Private Limited
No. 325/1, 14th Main
5th Cross, RMV Extension
Sadashiv Nagar, Bangalore
Karnataka 560080
India
Insolvency Commencement Date: April 21, 2022
Court: National Company Law Tribunal, Delhi Bench
Estimated date of closure of
insolvency resolution process: October 18, 2022
Insolvency professional: Jugraj Singh Bedi
Interim Resolution
Professional: Jugraj Singh Bedi
JSBA House, 1250 Ground FLoor
Mukherjee Nagar
Delhi 110009
E-mail: jb@jsba.in
irp.tierra@gmail.com
Classes of creditors: Debenture Holders
Insolvency
Professionals
Representative of
Creditors in a class: Atiuttam Prasad Singh
A-97 & 98, Upper Ground Floor
Street No. 6, Madhu Vihar
Delhi 110092
E-mail: atiuttamsingh@gmail.com
Santosh Sharma
Unit No. 110, First Floor
JMD Pacific Square
Sector-15, Part-II
Gurugram, Haryana 122001
- and –
First Floor, House No 17/7
Ashok Nagar, New Delhi 110018
E-mail: scisantoshsharma@gmail.com
Shyam Arora
96, Aravali Apartment
Alaknanda, New Delhi 110019
E-mail: arora.shyaam@yahoo.com
Last date for
submission of claims: May 5, 2022
TRV GLOBAL: CARE Keeps B- Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of TRV Global
Exports Private Limited (TGEPL) continues to remain in the 'Issuer
Not Cooperating ' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Short Term Bank 14.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated February 3,
2021, placed the rating(s) of TGEPL under the 'issuer
non-cooperating' category as TGEPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. TGEPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated December 20, 2021, December
30, 2021, January 9, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
TRV Global Exports Private Limited (TGEPL) was formerly known as
TRV Exports which was promoted by Mr. N. Shiva Kumar in the year
1999 as a partnership firm. Subsequently, TRV Exports was converted
into private limited company on August 28, 2007 and name of the
entity changed to current nomenclature i.e. TGEPL. TGEPL is engaged
in processing and trading of granite slabs and blocks. TGEPL
provides a varied range of quality granite products to its clients
that cater to the requirements of constructions like buildings,
hospitals, hotels and other housing projects. The key raw material,
granite rough blocks, are mainly procured from its owned & leased
quarries located at Karimnagar, Telangana. The quarry operations
are highly mechanized with TGEPL deploying a host of
machineries/equipment viz. Volvo Excavators, Diamond Wire Saws,
Hydraulic Multidrilling Rod Compressors, Dumpers, Loaders and
Tippers. The raw granite blocks are dressed on wire-saws and
mono-blade dressers before transporting from stockyard for
dispatch.
UNIQUE ENGINEERS: ICRA Lowers Rating on INR10cr Cash Loan to B+
---------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Unique
Engineers Pvt Ltd (UEPL) as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 10.0 [ICRA]B+ (Stable) ISSUER NOT
Cash Credit COOPERATING; Rating downgraded
from [ICRA]BB+ (Stable) and
rating continues to remain
under 'Issuer Not Cooperating'
category
Short-term 40.0 [ICRA]A4 ISSUER NOT
Non-fund based COOPERATING; Rating downgraded
from [ICRA]A4+ and rating
continues to remain under
'Issuer Not Cooperating'
Category
Rationale
The rating action follows lack of adequate information regarding
UEPL performance and hence the uncertainty around its credit risk.
ICRA assesses whether the information available about the entity is
commensurate with its rating and reviews the same as per its
"Policy in respect of non-cooperation by a rated entity" available
at www.icra.in. The lenders, investors and other market
participants are thus advised to exercise appropriate caution while
using this rating as the rating may not adequately reflect the
credit risk profile of the entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with Unique Engineers Pvt Ltd, ICRA has been trying to seek
information from the entity so as to monitor its performance, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with the aforesaid policy of ICRA, a rating view has
been taken on the entity based on the best available information.
UEPL was incorporated in 1992 by Mr. Manmohan Jindal, Mr. Rajiv
Gupta and Mr. Pradeep Sharma. The company undertakes turnkey
projects in HVAC systems. It provides HVAC solutions to a variety
of clients across different sectors. The client portfolio of the
company includes high-rise buildings, research and development
centres, laboratories, heavy industries, hospitals, educational
institutions, commercial spaces, residential apartments,
auditoriums, hotels, malls, etc. It provides solutions for
applications relating to comfort air conditioning, industrial air
conditioning, precision air conditioning, close control systems for
data centres and laboratories, clean rooms, process cooling,
pressurisation and ventilation. The company has an in-house
manufacturing facility of HVAC parts like air handling unit (AHU),
air washers, air scrubbers, fan coil unit, fan sections, cooling
coil, etc. at IMT Manesar, Gurgaon (Haryana).
VENKATA SAI: CARE Assigns B+ Rating to INR9.0cr LT Loan
-------------------------------------------------------
CARE Ratings has assigned the ratings on certain bank facilities of
Sri Venkata Sai Trading Company (SVST), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 9.00 CARE B+; Stable Assigned
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of SVST are tempered by
thin profitability, modest scale of operations with low net worth
base, leveraged capital structure and weak debt coverage ratios,
constitution of the entity as proprietorship firm with inherent
risk of withdrawal of capital, highly fragmented industry, exposed
to price volatility and seasonality of raw material. The ratings
however derive comfort from established track record and
experienced promoters, comfortable operating cycle and stable
demand outlook for chilly.
Rating Sensitivities
Positive Factors - Factors that could lead to positive rating
action/upgrade:
* Improvement in gearing to below 2.50x.
* Improvement in PBILDT margin to above 3.00%
Negative Factors- Factors that could lead to negative rating
action/downgrade:
* Decline in scale of operations to below INR70.00 crore in further
years
* Elongation in operating cycle more than 75 days
Detailed description of the key rating drivers
Key rating weakness
* Small scale of operation and thin profitability: The scale of
operations of the firm stood modest at INR94.52 crore in FY21 with
a net worth base of INR2.07 crore as on March 31, 2021.
Furthermore, the profitability of the firm has been thin given low
value addition nature of operation. The PBILDT margin of the firm
was at 1.88% and PAT margin at 1.09% in FY21.
* Leveraged capital structure and moderate debt coverage
indicators: The overall gearing ratio of the firm deteriorated from
3.57x as on March 31, 2020, to 4.49x as on March 31, 2021, on
account of higher utilisation of the working capital limits and
relatively higher debt as on balance sheet closing debt vis-à-vis
its net wroth. The debt profile of the firm consists of term loan
(4.30%), unsecured loan (8.17%), working capital borrowings
(87.53%). The total debt/GCA deteriorated from 7.81x in FY20 to
9.58x in FY21 on account of increase in debt levels. The interest
coverage ratio however improved from 2.73x in FY20 to 6.88x in FY21
on account of increase PBILDT level.
* Constitution of the entity being a partnership firm: Sri Venkata
Sai Trading Company being a proprietorship firm has the inherent
risk of possibility of withdrawal of the capital at the time of
personal contingencies. Moreover, firms have restricted access to
external borrowings as credit worthiness of the proprietor being
the key factors affecting credit decision for the lenders. During
review period, there is marginal withdrawal of capital to the
extent of INR0.02 crore.
* Highly fragmented and competitive business segment due to
presence of numerous players: The firm is engaged into a fragmented
business segment and competitive industry. The market consists of
several small to medium-sized firms that compete with each other
along with several large enterprises.
* Exposure to price volatility and seasonality of raw materials:
The firm is into processing of chillies as the primary raw
material. The profitability of SVST is vulnerable to fluctuations
in raw material prices due to commoditized nature of the business
and limited level of value addition. Furthermore, as the agro-based
commodities are seasonal in nature and are available readily only
for a few months in a year requiring adequate stocking levels of
raw materials. The agro raw materials as required by the firm are
commodities and their prices are linked to the demand supply
scenario, which in turn depends upon other external factors like
rainfall and international prices, thereby exposing the firm
profitability to changes in raw material prices.
Key rating strengths
* Long track record of operations with experienced proprietor: The
firm is established in the year 2004. Hence, the firm has a long
track record of operations of close to two decades in the industry.
Mr. Narasimha Rao Bathini, proprietor of the firm had experience of
more than three decades in the business.
* Comfortable operating cycle albeit working capital intensive
operations: The operating cycle of the firm stood comfortable at 36
days during FY21, (24 days during FY20). The raw materials are
predominantly agro commodities which are seasonal in nature and are
available readily only for a few months in a year requiring
adequate stocking levels of raw materials. Furthermore, the firm
extends credit period ranges from 45-60 days to its clientele
leading to average collection of 72 days. The firm procured raw
materials from traders located in Punjab, New Delhi, Andhra
Pradesh, Rajasthan, Karnataka, Telangana etc., which offers credit
period ranging from 15-45 days.
Liquidity analysis – Stretched
The liquidity profile of the firm is stretched with low profits and
navigate cash flow from operating activities. The current ratio of
the firm stood at 1.62x. The firm does not have any significant
unencumbered cash and bank balances. The average utilization of the
working capital lines stood at 50% for the last twelve months ended
Feb. 28, 2022. The firm has a leveraged capital structure which
provides limited headroom to avail additional debt.
Telangana based Sri Venkata Sai Trading was established in the year
2004 and promoted by Mr. Narsimha Bathina. The firm is engaged in
the processing (stem cut) and trading of chillies. The firm
generates 100% of the revenue from domestic sales out of which 70%
from Sidhhartha Corporation Private Limited. The firm procures
chillies from the local farmers.
VIJAY TRADING: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Vijay Trading Company Private Limited
Flat No. 101, OG-III
Oberoi Garden, Thakur Village
Off Western Express Highway
Kandivali (E), Mumbai 400101
Insolvency Commencement Date: April 21, 2022
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: September 24, 2022
Insolvency professional: CA Naren Sheth
Interim Resolution
Professional: CA Naren Sheth
1014-1015, Prasad Chamber
Tata Road No. 1, Opera House
Charni Road (East)
Mumbai 400004
Mobile: 09821133426
Tel: 02266322870
E-mail: mkindia58@gmail.com
vtcpltd@gmail.com
Last date for
submission of claims: May 6, 2022
VISHWASRAO NAIK: ICRA Keeps B+ Debt Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Vishwasrao
Naik Sahakari Sakhar Karkhana Ltd in the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]B+(Stable); ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 7.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 2.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Unallocated to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Based in Sangli, Maharashtra, Vishwasrao Naik Sahakari Sakhar
Karkhana Ltd, was incorporated in 1972 and is engaged in sugar
crushing operations with a capacity of 2500 ton of cane per day
(TCD). The sugar operations are integrated with bagasse-based power
co-generation 15 MW plant (established in 2012) and distillery
operations of installed capacity of 30 KLPD (established in 2001).
The company also operates a molasses waste based microbial
digestion unit in the factory premises which generates carbon
dioxide which is sold to industrial buyers.
YOGIRAJ GINNING: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Yogiraj Ginning & Oil Industries Private Limited
B-164, New Sardar Marketing Yard
8-B, National Highway
Gondal, Rajkot 360311
Insolvency Commencement Date: April 18, 2022
Court: National Company Law Tribunal, Surat Bench
Estimated date of closure of
insolvency resolution process: October 15, 2022
Insolvency professional: Vineeta Maheshwari
Interim Resolution
Professional: Vineeta Maheshwari
M-19, Metro Tower
Ring Road
Surat 395002
E-mail: ipvineetak@gmail.com
- and -
CS Heena Agrawal
301, Reegus Business Centre
New Citylight Road
Surat 395007
Tel: +917415170637
E-mail: cirp.yogi@gmail.com
Last date for
submission of claims: May 2, 2022
=========
J A P A N
=========
MITSUI E&S: Egan-Jones Keeps CCC- Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company, on April 6, 2022, maintained its 'CCC-'
foreign currency and local currency senior unsecured ratings on
debt issued by Mitsui E&S Holdings Co., Ltd. EJR also downgraded
the rating on commercial paper issued by the Company to D from C.
Headquartered in Chuo City, Tokyo, Japan, Mitsui E&S Holdings Co.,
Ltd. offers shipbuilding services.
=====================
N E W Z E A L A N D
=====================
DELTA SHARED: Court to Hear Wind-Up Petition on May 13
------------------------------------------------------
A petition to wind up the operations of Delta Shared Services
Limited will be heard before the High Court at Auckland on May 13,
2022, at 10:00 a.m.
Vault Communications Limited filed the petition against the company
on Feb. 23, 2022.
The Petitioner's solicitor is:
Douglas James Kauwhata Mitchell
Douglas Mitchell, Barrister & Solicitor
Unit J1, 4 Antares Place
Mairangi Bay, Auckland
HUM HOSPITALITY: Court to Hear Wind-Up Petition on May 13
---------------------------------------------------------
A petition to wind up the operations of Hum Hospitality Limited
will be heard before the High Court at Auckland on
May 13, 2022, at 10:00 a.m.
Auckland Council filed the petition against the company on Feb. 2,
2022.
The Petitioner's solicitor is:
Kelly Frances Quinn
35 Albert Street, Auckland
Email: kelly.quinn@aucklandcouncil.govt.nz
=================
S I N G A P O R E
=================
CHARAKU PTE: Court to Hear Wind-Up Petition on May 6
----------------------------------------------------
A petition to wind up the operations of Charaku Pte Ltd will be
heard before the High Court of Singapore on May 6, 2022, at 10:00
a.m.
XMI Group Pte. Ltd. filed the petition against the company on April
11, 2022.
The Petitioner's solicitors are:
Eldan Law LLP
6 Raffles Quay #15-01
Singapore 048580
STAR CRUISES: Placed in Provisional Liquidation
-----------------------------------------------
Joshua James Taylor and Chew Ee Ling of Alvarez & Marsal (SE Asia)
Pte. Ltd on April 14, 2022, were appointed as provisional
liquidators of Star Cruises Singapore Investment Holding Pte. Ltd,
Star Cruise Pte Ltd, and Cruiseglobal Pte. Ltd.
The provisional liquidators can be reached at:
Joshua James Taylor
Chew Ee Ling
Alvarez & Marsal (SE Asia)
c/o Six Battery Road #16-01/02
Singapore 049909
STAR RESORT: Placed in Provisional Liquidation
----------------------------------------------
Joshua James Taylor and Chew Ee Ling of Alvarez & Marsal (SE Asia)
Pte. Ltd on April 14, 2022, were appointed as provisional
Liquidators of Star Resort Management Services Pte. Ltd.
The provisional liquidators can be reached at:
Joshua James Taylor
Chew Ee Ling
Alvarez & Marsal (SE Asia)
c/o Six Battery Road #16-01/02
Singapore 049909
WORLDCARD (SINGAPORE): Placed in Provisional Liquidation
--------------------------------------------------------
Joshua James Taylor and Chew Ee Ling of Alvarez & Marsal (SE Asia)
Pte. Ltd on April 14, 2022, were appointed as provisional
liquidators of Worldcard (Singapore) Pte Ltd.
The provisional liquidators can be reached at:
Joshua James Taylor
Chew Ee Ling
Alvarez & Marsal (SE Asia)
c/o Six Battery Road #16-01/02
Singapore 049909
[*] SINGAPORE: MAS Speeds Up Probe of Financial Crimes
------------------------------------------------------
The Straits Times reports that perpetrators of financial crimes in
Singapore can expect swift punishment, a report issued on April 27
by the Republic's central bank revealed.
The Straits Times says the average time taken by the Monetary
Authority of Singapore (MAS) to complete reviews and investigations
into breaches of financial industry laws and regulations decreased
from 24 months to just nine in criminal cases, and from 26 months
to 19 in civil penalty cases.
Its Enforcement Report 2020-2021 notes that speedy conclusion of
the probes helped secure seven criminal convictions, which included
three jail sentences and four fines, in the 18 months to Dec. 31,
2021.
According to The Straits Times, the report shows 20 prohibition
orders were issued, banning unfit representatives from re-entering
the financial industry.
The licence of a fund management company - Apical Asset Management
- was revoked in the same period, the report notes.
The MAS imposed SGD2.4 million in composition penalties for money
laundering and terror financing control breaches, and SGD150,000 in
civil penalties against offenders.
The Straits Times relates that Ms. Peggy Pao-Keerthi Pei Yu,
executive director of its enforcement department, said the central
bank does not gauge enforcement effectiveness by timelines alone,
as the time taken to complete cases can vary depending on several
factors.
"Nevertheless, the trend of reduction in time taken to complete our
criminal and civil penalty investigations over the years attests to
our commitment to administer swift enforcement outcomes," the
report quotes Ms. Pao-Keerthi as saying.
She said MAS has proposed legislative changes to boost its
effectiveness in addressing financial misconduct.
Earlier this year, MAS introduced enhanced prohibition order powers
in the Financial Services and Markets Bill 2022 in Parliament and
also consulted on proposals to strengthen its investigative powers
under MAS-administered Acts.
The Straits Times relates that the report said MAS will continue to
engage the industry in efforts to identify potential mis-selling
and other offences early by using data analytics.
In response to investor and industry feedback, MAS has introduced a
section in the latest report that will provide updates on ongoing
high-profile cases such as Hyflux and Noble Group, as well as
embark on a study on investor recourse for losses due to market
misconduct.
Investigations against Hyflux were initiated in June 2020 after a
review by MAS and Singapore Exchange into the company's disclosure,
accounting and auditing practices raised concerns about its
Tuaspring Integrated Water and Power Project.
Noble Group has been under investigation since 2018 for suspected
disclosure-related offences, and potential breaches of the
Companies Act by its wholly owned subsidiary Noble Resources
International.
Such updates, MAS said, are aimed at providing greater transparency
regarding ongoing efforts to pursue complex and high-profile
cases.
However, it will balance the public's interest in obtaining
information against the need to protect the integrity of
investigations and any pending court proceedings.
"We will continue to improve our processes to uphold Singapore's
reputation as a trusted financial centre that takes a tough
approach to financial crime and misconduct," said Ms Pao-Keerthi.
According to the MAS report, enforcement priorities for 2022 and
2023 will include enhancing effectiveness in pursuing breaches of
corporate disclosure requirements, including through close
collaboration with key regulatory and enforcement partners.
For instance, MAS and the police's Commercial Affairs Department
recently launched a joint investigation with the Hong Kong
Securities and Futures Commission and the Hong Kong police into a
syndicate suspected of operating pump-and-dump scams on stocks
listed on the Hong Kong Stock Exchange.
The simultaneous joint operation was the first of its kind in
tackling cross-border pump-and-dump scams.
Pump-and-dump is a manipulative scheme to boost the price of a
security through fake recommendations based on false, misleading,
or exaggerated statements.
"We will continue to collaborate closely with our enforcement
partners, to uphold Singapore's reputation as a trusted financial
centre," said Ms Pao-Keerthi.
MAS will also step up focus on corporate finance advisory firms and
fund management companies that fail to comply with business conduct
requirements.
The regulator will seek options for enhancing investors' recourse
for losses due to securities market misconduct and strengthen focus
on holding senior managers accountable for breaches by their
companies or subordinates, The Straits Times adds.
=====================
S O U T H K O R E A
=====================
KOREA GAS: Egan-Jones Hikes Senior Unsecured Ratings to BB
----------------------------------------------------------
Egan-Jones Ratings Company on April 5, 2022, upgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by Korea Gas Corporation to BB from BB-.
Headquartered in Daegu, South Korea, Korea Gas Corporation
manufactures, wholesales, and distributes liquefied natural gas
(LNG) and liquefied petroleum gas (LPG) throughout South Korea.
=================
S R I L A N K A
=================
SRI LANKA: World Bank Agrees to Provide US$600MM in Financial Aid
-----------------------------------------------------------------
Reuters reports that the World Bank has agreed to provide Sri Lanka
with $600 million in financial assistance to help meet payment
requirements for essential imports, the Sri Lankan president's
media division said in a statement on April 26.
"The World Bank has agreed to provide $600 million in financial
assistance to address the current economic crisis," the statement
said.
The World Bank would release $400 million "shortly", it said.
According to the statement, the World Bank said it would continue
to help Sri Lanka to overcome the current economic crisis, Reuters
relays.
Sri Lanka's worst financial crisis since independence in 1948 was
caused by a drastic drop in its reserves that dropped 70% over the
past two years, hitting $1.93 billion at the end of March. This
left Colombo struggling to pay for essentials, including fuel,
medicines and food.
Earlier this month, Sri Lanka kicked off talks with the
International Monetary Fund (IMF) for financial assistance. Before
the IMF finalises a programme for Sri Lanka, the country needs
$3-$4 billion in bridge financing to help meet its essential
expenses, Reuters recalls.
Reuters says the Sri Lankan government has also appealed to
multiple countries and multilateral organisations for bridge
financing until the IMF comes up with its aid.
India has helped Sri Lanka by assisting with $1.9 billion, and
Colombo is in talks with New Delhi for an extra $1.5 billion to
fund imports, including fuel.
Sri Lanka is also negotiating with China for up to $1 billion in a
syndicated loan.
Sri Lanka's Finance Minister Ali Sabry said Colombo would also seek
assistance from the Asian Development Bank.
Reuters adds that the country announced a suspension on some of its
foreign debt repayments earlier this month and said it would divert
its meagre reserves to fund essential imports such as fuel, cooking
gas and medicine.
===========
T A I W A N
===========
WAN HAI: S&P Affirms 'BB+' LongTerm ICR on Robust Profitability
---------------------------------------------------------------
S&P Global Ratings affirmed its 'BB+' long-term issuer credit
rating on Taiwan-based container shipper Wan Hai Lines Ltd.
The stable outlook reflects S&P's view that Wan Hai's strong
profitability could enable the company to maintain positive
discretionary cash flow and a net cash position for 2022-2023.
Heightened freight rates and growing lifting volume should support
Wan Hai's revenue over 2022-2023.We now forecast that freight rates
could start normalizing in late 2022 at the earliest, from current
all-time highs, provided the pandemic's impact on overall supply
chains eases. Thereafter, as overall industry capacity gradually
comes online and vessels on order start to be delivered from 2023,
ocean tariffs might face a correction and subsequently stabilize at
profitable levels that are likely above the pre-pandemic base.
Container freight rates have been much stronger than our previous
forecast in 2021 across most trade lanes due to continued
widespread congestion in major maritime ports, disrupted logistics
chains, and still-strong demand for tangible goods.
Freight rates are likely to peak in 2022 with a gradual ease in
port congestion worldwide and the addition of new vessels. The
Shanghai Containerized Freight Rate Index (SCFI) recently declined
by 16.6% from its peak at the beginning of this year. This was
because of some recent events, including China's COVID-19-related
lockdown of the city and the conflict between Russia and Ukraine.
However, the index is still about 150% above its level at the
beginning of 2021. Wan Hai's blended freight rates also increase
sharply by 130%-135% during the same period.
S&P said, "However, we view a sudden plunge of freight rates as
less likely, given that capacity management could be more
disciplined among major carrier alliances. In addition,
increasingly stringent environmental regulations on sulfur and
greenhouse gas emissions are likely to partly offset the capacity
growth from new containerships over the next two to three years.
Accordingly, we project Wan Hai's blended freight rate will
increase 50%-55% year on year in 2022 before gradually
normalizing.
"We also forecast that Wan Hai's capacity additions to transpacific
trade routes could generate significant revenue for the company,
given still-strong demand for physical goods in the U.S. and high
freight rates. We therefore estimate Wan Hai's lifting volume will
grow 3.5%-4.5% per year in 2022 and 2023, before decelerating
somewhat and largely trailing global GDP growth at 2%-3% in
subsequent years."
Despite higher bunker costs and charter hire payments, Wan Hai
could maintain an elevated EBITDA margin in 2022-2023. Crude oil
prices have spiked recently due to the Russia-Ukraine conflict,
together with growing oil demand as the impact from the omicron
variant of COVID-19 subsides. S&P therefore project Wan Hai's
bunker cost will increase to US$650-US$700 per ton in 2022-2023
from US$521 per ton in 2021. Nonetheless, the impact on Wan Hai's
profitability from rising bunker costs is relatively limited,
because the company can pass through the incremental cost through
surcharges to clients due to the capacity shortage. The company's
charter hire payment will also increase by 35%-40% in 2022 due to a
limited supply of vessels on the market. However, S&P still believe
elevated freight rates will sustain Wan Hai's EBITDA margin at
65%-70% in 2022 and 50%-55% in 2023, compared with the pre-pandemic
level of below 20%.
Wan Hai's financial buffer should remain significant, with
continued strong profitability in 2022-2023, despite aggressive
capex. The company's capital expenditure (capex) will continue to
remain at a high level over the next two years, given its
aggressive plan to build up its self-owned fleet and expand into
long-haul service lines. S&P projects the company's capex at new
Taiwan dollar (NT$) 45 billion-NT$50 billion in 2022, compared with
NT$42.7 billion in 2021, before decreasing to NT$40 billion-NT$42
billion in 2023.
Thanks to improved profitability, Wan Hai generated NT$133 billion
in operating cash flow during 2021. S&P said, "We estimate it will
generate NT$200 billion-NT$230 billion in operating cash flow in
2022, which substantially outpaces the company's capital needs. In
addition, Wan Hai could remain flexible in terms of its dividend
policy and the company is likely to reserve sufficient cash for
potential fleet expansion, in our view. Wan Hai could maintain at a
net cash position in 2022-2023 in our base case. Meanwhile, we
forecast the company's return on capital ratio will remain above
100% in 2022 and decline to 30%-35% in 2023."
Wan Hai's increasing exposure to competitive long-haul routes could
increase the volatility of its performance and leverage through
industry cycles. The company ordered 18 vessels with a capacity of
13,000 twenty-foot equivalent units (TEUs) each, which will be
delivered during 2022-2024, mainly for the U.S. market. This
underpins Wan Hai's plans to expand into long-haul routes,
especially transpacific service lines. American routes accounted
for 55% of the carrier's total revenue in 2021. This rose to about
60% in the first quarter of 2022, compared with only 10%-20%
historically.
S&P said, "However, we believe that Wan Hai has a much weaker
position in the long-haul container shipping markets and could face
intense competition from other bigger and more established carriers
with more comprehensive service networks, partly through shipping
alliances. We forecast that the long-haul markets will remain more
volatile than the intra-Asia container shipping markets, though
market discipline, particularly on capacity expansion, could
improve moderately. This would further increase the volatility of
Wan Hai's profitability in the long term. In addition, capital
spending is likely to rise for further expanding its market share
in the long-haul markets where mega vessels with lower unit costs
are vital for competing. This could significantly waken the
company's credit metrics, particularly during a market downturn.
"The stable rating outlook on Wan Hai reflects our view that the
company's strong operating cash flow and high cash balance on hand
could fund its aggressive capex plans while maintaining a net cash
position over the next two years. We forecast that strong, albeit
gradually decreasing, freight rates will sustain Wan Hai's strong
profitability and keep the company's return on capital well above
10% in 2022-2023 due to continued port congestion and
still-favorable demand, despite higher operating costs."
S&P may lower its rating on Wan Hai if:
-- Profitability deteriorates materially amid possible container
ship oversupply should the market become less disciplined, or if
rising competition from long-haul competitors erodes Wan Hai's
competitive advantage in intra-Asia, or the company's expansion
into the competitive long-haul market materially dampens its
profitability; or
-- The company takes on more aggressive expansion and
substantially increases its debt leverage, such that its ratio of
funds from operations to debt falls to below 45% for an extended
period.
S&P sees a low likelihood of upgrading Wan Hai over the next 12
months, given high business risk in the global container shipping
market and the company's aggressive capex plans for expansion in
the more volatile long-haul markets. However, S&P may raises its
rating on the company if:
-- Wan Hai substantially enhances its competitive position in the
global container shipping market with significantly enlarged scale
and market share; and
-- The company sustains a very conservative financial policy plan
that supports the ratio of funds from operations-to-debt above 60%
through the business cycle.
*********
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 2022. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
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*** End of Transmission ***