/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/220512.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, May 12, 2022, Vol. 25, No. 89 Headlines A U S T R A L I A AUSTRALIAN CARPARK: Second Creditors' Meeting Set for May 19 OFW SERVICES: Second Creditors' Meeting Set for May 17 ONE FOR WOMEN: Second Creditors' Meeting Set for May 17 WEEJAH PTY: Second Creditors' Meeting Set for May 18 C H I N A GLP PTE: Fitch Affirms BB+ Rating on Sub. Perpetual Securities GUANGDONG-HK HOLDINGS: Fitch Withdraws 'B-' Issuer Default Ratings SHIMAO GROUP: Sparks Bond Selloff by Seeking One-Year Extension SUNSHINE 100: KPMG Steps Down as Auditor ZIJIN MINING: Fitch Hikes LongTerm IDR From BB+, Outlook Stable I N D I A ANAND SHREE: CARE Keeps B Debt Rating in Not Cooperating Category ARPS TEA: CARE Keeps B+ Debt Rating in Not Cooperating BALAJI PAPER: Insolvency Resolution Process Case Summary BLUEFLAME INDUSTRIES: CARE Cuts Rating on INR6.61cr Loan to B- CAPTIVATE FOODS: Insolvency Resolution Process Case Summary CHADALAVADA INFRATECH: Liquidation Process Case Summary CHANDULAL CHANDRAKAR: Insolvency Resolution Process Case Summary CLASSIC BOTTLE: Liquidation Process Case Summary DEVI CHAND: CARE Lowers Rating on INR7.30cr LT Loan to B+ DHARANI SUGARS: CARE Keeps D Debt Ratings in Not Cooperating DIVYASHAKTI FOODS: CARE Keeps B Debt Rating in Not Cooperating ELENA POWER: Insolvency Resolution Process Case Summary EXQUISITE PRINT: CARE Lowers Rating on INR9.63cr Loan to B- FIMA PROPERTIES: Insolvency Resolution Process Case Summary FREEWORLD EXPORTS: Liquidation Process Case Summary HOTEL RAJMAHAL: CARE Keeps B- Debt Rating in Not Cooperating INDUS MOBILE: Liquidation Process Case Summary ISKRUPA MALL: CARE Lowers Rating INR80.85cr LT Loan to D J.M.L. MARKETINGS: CARE Keeps D Debt Ratings in Not Cooperating KAMAKSHI STEELS: CARE Keeps D Debt Ratings in Not Cooperating KANORIA SUGAR: Insolvency Resolution Process Case Summary KUMAR'S COTEX: Insolvency Resolution Process Case Summary MAPLE LOGISTICS: Insolvency Resolution Process Case Summary MATA INFRATECH: Insolvency Resolution Process Case Summary MBS IMPEX PRIVATE: Liquidation Process Case Summary MCNALLY BHARAT: Insolvency Resolution Process Case Summary MGI INFRA: CARE Lowers Rating on INR7.35cr LT Loan to D MM POLYMERS: CARE Withdraws B- Long-Term Bank Debt MOTHERS PRIDE: CARE Keeps D Debt Rating in Not Cooperating NASIR ILAHI: CARE Lowers Rating on INR6cr LT Loan to C P SARKAR FABICATORS: Insolvency Resolution Process Case Summary PERAMBRA COCONUT: Insolvency Resolution Process Case Summary POOJA LAND: Insolvency Resolution Process Case Summary RAJASTHAN DELHI: CARE Lowers Rating on INR9cr LT Loan to B S. PRINCE: CARE Keeps B- Debt Rating in Not Cooperating Category SAI INDUSTRIES: Insolvency Resolution Process Case Summary SATWIKI PROTEINS: CARE Lowers Rating on INR43.92cr LT Loan to D SKS POWER: Insolvency Resolution Process Case Summary SOHAN COPPERTECH: CARE Keeps B+ Debt Rating in Not Cooperating TELTROY VINIMAY: Insolvency Resolution Process Case Summary TETRADRIP PHARMA: CARE Lowers Rating on INR6.93cr LT Loan to D TICEL BIO: CARE Keeps D Debt Rating in Not Cooperating Category UMARAI WORLDWIDE: Liquidation Process Case Summary I N D O N E S I A GARUDA INDONESIA: Seeks Extension for Debt Restructuring REJEKI ISMAN: Fitch Affirms 'RD' LongTerm Issuer Default Rating STAR ENERGY: Fitch Affirms 'BB-' Rating on $580MM Notes Due 2033 M A L A Y S I A 1MDB: Goldman Investors Suing Seek Bankers' Testimony on Low N E W Z E A L A N D BEAUTIFUL REAL: Commences Wind-Up Proceedings EH CIVIL: Creditors' Proofs of Debt Due on July 9 JONESY CONSTRUCTION: Creditors' Proofs of Debt Due on June 10 LANDSCAPE PROPERTY: Creditors' Proofs of Debt Due on July 6 NZ CLEANING: Creditors' Proofs of Debt Due on June 17 S I N G A P O R E APOLLO AQUACULTURE: Court Enters Judicial Management Order MOO CHOO: Commences Wind-Up Proceedings RED LION: Creditors' Proofs of Debt Due on June 13 TAIGER SINGAPORE: Commences Wind-Up Proceedings S R I L A N K A [*] Fitch Puts 12 Sri Lankan Non-Bank Entities on Rating Watch Neg. - - - - - ================= A U S T R A L I A ================= AUSTRALIAN CARPARK: Second Creditors' Meeting Set for May 19 ------------------------------------------------------------ A second meeting of creditors in the proceedings of Australian Carpark Systems Pty Ltd has been set for May 19, 2022, at 11:00 a.m. via virtual meeting technology. 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 18, 2022, at 5:00 p.m. Adam Shepard of Setter Shepard was appointed as administrator of Australian Carpark on April 12, 2022. OFW SERVICES: Second Creditors' Meeting Set for May 17 ------------------------------------------------------ A second meeting of creditors in the proceedings of OFW Services Pty Ltd has been set for May 17, 2022, at 11:00 a.m. via Zoom only. 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 16, 2022, at 4:00 p.m. Robert Allan Jacobs of Auxilium Partners was appointed as administrator of OFW Services on March 31, 2022. ONE FOR WOMEN: Second Creditors' Meeting Set for May 17 ------------------------------------------------------- A second meeting of creditors in the proceedings of One For Women Pty Ltd has been set for May 17, 2022, at 10:00 a.m. via Zoom Only. 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 16, 2022, at 4:00 p.m. Robert Allan Jacobs of Auxilium Partners was appointed as administrator of One For Women on March 31, 2022. WEEJAH PTY: Second Creditors' Meeting Set for May 18 ---------------------------------------------------- A second meeting of creditors in the proceedings of Weejah Pty Ltd has been set for May 18, 2022, at 11:00 a.m. via teleconference and in person at Level 34, the EY Centre, 200 George Street, in Sydney, NSW. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by May 17, 2022, at 4:00 p.m. David Kennedy and Adam Nikitins of Ernst & Young were appointed as administrators of Weejah Pty on April 12, 2022. ========= C H I N A ========= GLP PTE: Fitch Affirms BB+ Rating on Sub. Perpetual Securities -------------------------------------------------------------- Fitch Ratings has revised the Outlook on Singapore-based GLP Pte. Ltd.'s Long-Term Foreign-Currency Issuer Default Rating (IDR) to Stable from Negative, and affirmed the IDR, senior unsecured rating, the USD5 billion medium-term note programme and the outstanding senior bonds at 'BBB'. Fitch has also affirmed the subordinated perpetual securities at 'BB+'. The Outlook revision reflects the reduction in leverage during 2021 as GLP is transforming into an asset-light company. GLP has a record of consistent asset monetisation while its business profile remains robust despite persistent Covid-19 related disruptions. KEY RATING DRIVERS Decline in Leverage: GLP's ratio of net debt to recurring EBITDA fell by more than Fitch expected to 7x in 2021 from 11x in 2020 (or 15x in 2020 if performance-based fees are excluded from EBITDA). The rapid deleveraging was helped by higher-than-expected dividend income from jointly controlled entities (JCE), which is included in GLP's EBITDA-based credit metrics. Fitch estimates the recurring and sustainable JCE dividends by excluding the share of changes in fair value of investment properties (net of tax) held by the JCEs, which are typically non-cash in nature. On an adjusted basis, Fitch estimates JCE dividends rose to USD560 million in 2021 from USD153 million in 2020. Reclassification Reduces Debt Balance: GLP reclassified USD5.8 billion of assets and USD2.6 billion of liabilities, including USD1.8 billion in loans and borrowings, as assets and liabilities held for sale as of end 2021. This reclassification directly contributed to a reduction in GLP's reported debt balance. Asset Disposals' Proceeds, Risks: GLP is disposing stakes in assets held for sale, and expects to complete the process by end-2022. Fitch believes GLP has a good track record in asset monetization. Its net monetisation proceeds was USD7 billion in 2021 and it targets for USD6 billion in 2022. We believe investor demand for GLP's logistics properties continues to be strong as they offer stable, visible returns in a sector that is driven by secular demand growth. However, a strategy of leverage management via continuous and active asset rebalancing carries execution risks. Declining Rental Contribution: Fitch expects contribution from GLP's rental income will drop to above 50% of consolidated revenue from 71% as the company continues to pursue its asset-light strategy. Part of the capital recycled from traditional logistics assets will fund investments in other logistics services, such as cold storage and data centres. Fitch believes contributions from these new investments will remain limited in the near term. However, Fitch's rating sensitivities for data-centre companies tends to be more conservative than for other commercial real-estate companies. This is due to the more limited investor market for data-centre assets, the lack of alternative use value and sector-specific risks. These risks include the high capex required to ensure assets remain technologically modern and the risks associated with the shift to cloud computing. Diverging Leverage and Coverage: GLP's holding company recurring-income interest coverage improved to 8.7x by end-2021, supported by high JCE dividend, while consolidated recurring EBITDA interest coverage rose more slowly to 2.4x. We expect GLP to continue to reduce debt at the holding-company level while JCEs' debt could increase. Fitch estimates GLP's JCE net leverage, as measured by net debt-to-investment properties, rose to 31% in 2021 from 27% in 2020. ESG - Group Structure: GLP has an ESG Relevance Score of 4 for Group Structure due to GLP's complex group structure with various forms of operating entities and fund structures generating different income streams. The structure is more complex than many peers among Asian REITs and property investment companies. DERIVATION SUMMARY GLP is comparable with European logistics warehouse operators, such as SEGRO PLC (A-/Stable) and SELP Finance SARL (BBB+/Stable), as well as Singapore-based Mapletree Industrial Trust (MIT, BBB+/Stable) and Mapletree Logistics Trust (MLT, BBB+/Stable). In particular the company's business profile is comparable to MIT and MLT with GLP having a larger asset portfolio and more diversified geographical footprint. However, GLP's largest market is in China, which is still developing and has shorter-dated lease terms than the more developed markets its peers focus on. GLP is also undergoing a transition to an asset-light business model with increasing income contribution from management fees and dividends. Finally, GLP has a more complex structure with various forms of operating entities and fund structures generating different income streams when compared with MIT and MLT. MIT and MLT are rated one notch above GLP. MIT has tighter leverage than GLP with Fitch expecting net debt/EBITDA to hover around 6.5x-7.0x over the medium term and both REITs have stronger coverage than GLP with operating EBITDA/interest paid expected to stay above 5x-6x in the medium term. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer - 2022-2025 revenue CAGR of 14% (2021: -4%) - 2022-2025 average consolidated EBITDA margin of 46% (2021: 48%) - Asset monetisation assumptions based on management's guidance adjusted for potential timing delays; net monetisation proceeds to reach USD6 billion in 2022 and average USD3.7 billion per annum in 2023-2025 (2021: USD7.2 billion) - Capex inclusive of acquisitions (on a consolidated basis) of USD5.8 billion in 2022 and average USD3.8 billion per annum in 2023-2025 (2021: USD4.8 billion) RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - Consolidated net debt-to-recurring EBITDA (including JCE dividends) lower than 5.5x for a sustained period; - Consolidated recurring EBITDA-to-cash interest higher than 4.0x for a sustained period; - Recurring income-to-cash interest at the holding-company level that is higher than 4.0x for a sustained period; - GLP's JCE (proportionately adjusted) loan-to-value ratio (net debt-to-investment properties) sustained at less than 30% Factors that could, individually or collectively, lead to negative rating action/downgrade: - Consolidated net debt-to-recurring EBITDA (including JCE dividends) higher than 7.5x for a sustained period; - Consolidated recurring EBITDA-to-cash interest lower than 2.5x for a sustained period; - Recurring income-to-cash interest at the holding-company level that is lower than 2.5x for a sustained period; - GLP's JCE (proportionately adjusted) loan-to-value ratio sustained at more than 40% BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Sufficient Liquidity: As of end-2021, GLP had total debt of USD12.3 billion (including 50% credit applied to USD1.2 billion of subordinated perpetuals), of which USD1.5 billion was short-term debt, against available cash of USD2.0 billion. GLP also had USD1.2 billion in unused committed banking facilities. GLP's Chinese operating entity holds 65% of its debt, with 28% at the holding-company level as of December 2021. The holding-company debt is supported by JCE dividends and management-fee income. The holding-company level recurring-income interest coverage was 8.7x at end-2021. ISSUER PROFILE GLP is a global investor and provider of logistics facilities. These facilities are either directly held by GLP or syndicated and held by funds managed by the company or under JCEs. Total gross floor area (inclusive of properties under development and land held for future development) reached 75 million sq m and assets under management (including both real estate and private equity funds) over USD120 billion in December 2021. ESG CONSIDERATIONS GLP has an ESG Relevance Score of '4' for Group Structure due to its complex group structure, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Rating Prior ------ ----- GLP Pte. Ltd. LT IDR BBB Affirmed BBB senior secured LT IDR BBB Affirmed BBB subordinated LT BB+ Affirmed BB+ GUANGDONG-HK HOLDINGS: Fitch Withdraws 'B-' Issuer Default Ratings ------------------------------------------------------------------ Fitch Ratings has withdrawn China-based developer Guangdong - Hong Kong Greater Bay Area Holdings Limited's (GHKGBA) Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'B-', as well as the 'B-' senior unsecured rating and outstanding senior unsecured note ratings. All ratings are on Rating Watch Negative. Fitch is withdrawing the ratings as GHKGBA has chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings or analytical coverage for GHKGBA. KEY RATING DRIVERS No longer relevant, as the ratings have been withdrawn. RATING SENSITIVITIES No longer relevant, as the ratings have been withdrawn. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. ISSUER PROFILE GHKGBA, listed on the Hong Kong Stock Exchange since 2013, focuses on residential projects in the Greater Bay Area and develops trade-centre projects in third-tier Chinese cities. It was known as Hydoo International Holding Limited before the Wong family sold its stake to the holding company of GHKGBA in September 2019. ESG CONSIDERATIONS GHKGBA has an ESG Relevance Score of '4' for Financial Transparency due to the delay in the publication of the audited 2021 financial results, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. DEBT RATING PRIOR ---- ------ ----- Guangdong - Hong Kong Greater LT IDR WD Withdrawn B- Bay Area Holdings Limited senior unsecured LT WD Withdrawn B- SHIMAO GROUP: Sparks Bond Selloff by Seeking One-Year Extension --------------------------------------------------------------- Caixin Global reports that bond investors are fleeing one of China's biggest property developers, Shimao Group Holdings Ltd., after it sought a one-year payment extension on a CNY475 million (US$70.6 million) onshore bond due later this month. Issued in 2019, the publicly offered bond has a coupon rate of 4.15% and the principal is due on May 22. The company will hold a creditors' meeting next week to put the proposal to a vote, according to a filing on May 9, the report says. About Shimao Group China-based Shimao Group Holdings Ltd, formerly Shimao Property Holdings Ltd, is an investment holding company principally engaged in the sale of properties. The Company operates its business through four segments. The sales of Properties segment is mainly engaged in the development of residential real estate. The Property Management Income and Others is mainly engaged in property management. The Hotel Operation Income segment is mainly engaged in hotel operations. The Commercial Properties Operation Income segment is mainly engaged in the development, investment and operation of commercial, office and industrial park property projects. As reported in the Troubled Company Reporter-Asia Pacific on March 7, 2022, Fitch Ratings has downgraded Shimao Group Holdings Limited's Issuer Default Rating (IDR) to 'CCC' from 'B-', and the senior unsecured rating and outstanding senior unsecured notes to 'CCC', from 'B-', with a Recovery Rating of 'RR4'. All ratings have been removed from Rating Watch Negative, on which they were placed in December 2021 amid poor capital market access and worsening market confidence. The downgrade reflects Shimao's narrowing margin of safety for refinancing capital market maturities. Fitch estimates Shimao has to address around CNY22 billion of capital market maturities during 2022, despite some progress in asset sales. The repayment of the capital market debt hinges on large asset disposals and the successful refinancing or extension of bank and trust loans. SUNSHINE 100: KPMG Steps Down as Auditor ---------------------------------------- Bloomberg News reports that auditor KPMG has resigned with effect from May 7, Sunshine 100 China Holdings Ltd. said in an exchange filing. Bloomberg relates that KPMG said that during its risk assessment in relation to the audit of Sunshine 100's consolidated financial statements for the year ended December 2021, it identified a number of matters requiring explanations and supporting documents. The developer hasn't yet provided the requested information. Sunshine 100 China Holdings Ltd. is principally engaged in the sale of properties. The Company operates its business through four segments. The Mixed-use Business Complexes segment is engaged in the development and sales of business complex products. The Multi-functional Residential Communities segment is engaged in the development and sales of residential properties and land development. The Investment Properties segment is engaged in the leasing of offices and commercial premises. The Property Management and Hotel Operation segment is engaged in the provision of property management service and hotel accommodation services. ZIJIN MINING: Fitch Hikes LongTerm IDR From BB+, Outlook Stable --------------------------------------------------------------- Fitch Ratings has upgraded Chinese mining company Zijin Mining Group Co., Ltd's Long-Term Issuer Default Rating (IDR) and senior unsecured rating to 'BBB-' from 'BB+'. The Outlook is Stable. The upgrade reflects the company's deleveraging after the ramp-up of its major copper and mine assets in China and overseas, and the benefits of diversifying its exposure to lithium carbonate with the acquisition of the 3Q project in Argentina. Fitch believes Zijin's EBITDA and FFO generation will remain strong from an increase in both gold and copper production, as well as resilient global commodity prices, providing sufficient headroom for the company to meet capex requirements for undeveloped projects and carry out acquisitions while keeping net debt/EBITDA below 2x. Zijin's ratings are also supported by its well-diversified portfolio of precious and base metals, an average cost position in the second quartile of the global cost curve and high-yielding assets with a long mine life. KEY RATING DRIVERS Deleveraging on Higher Production: Fitch expects Zijin's net debt/EBITDA to stay at 1.5x-2x in 2022-2024 after falling to 2.1x by end-2021 from 3.5x at end-2020. The deleveraging was driven by Zijin's strong cash flow on supportive commodity prices and higher production volume from acquired mining projects. Its total mined copper production rose by 29% to 584,000 tonnes in 2021 as its projects in Tibet, China, the Democratic Republic of Congo (DRC) and Serbia started operations, and production ramped up at a Serbian mine. Fitch estimates Zijin's mined gold volume will reach 58 tonnes in 2022 and 66 tonnes in 2023 (2021: 46 tonnes) from production additions in Shan'xi, China and a ramp-up at mines in Serbia, Guyana, Australia and Colombia. Fitch expects Zijin to reach its copper volume target of 860,000 tonnes in 2022 and 930,000 tonnes in 2023 with full production starting at the DRC, Serbian and Tibetan mines from 2022. It produced 194,000 tonnes in mined copper and 13 tonnes in gold in 1Q22, on track to deliver its full-year production targets. Strong Profit Provides Financial Flexibility: Fitch thinks Zijin's cash flow will stay strong on the production ramp-up, solid cost position and favourable commodity prices, providing headroom for capex and investment. The completion of high-grade mines in 2021 solidified its average cost position. Copper's fundamentals, such as higher demand from its use in electrification, remain supportive. Fitch believes Zijin's annual capex of CNY18 billion in 2022-2023 will be fully funded by internal cash and it has flexibility to cut expenditure when commodity prices are low. Venturing into New Material: Fitch believes the acquisition of 3Q, a high-grade lithium brine lake in Argentina, enhances Zijin's horizontal diversification. It is the company's first acquisition outside its main business of non-ferrous metal mining in the new energy industry, although the project would not be contributing revenue until 2024. Zijin will invest around CNY2 billion over 2022-2023 to bring the project into production. It estimates annual output of battery-grade lithium carbonate of 20,000 tonnes once production ramps up in 2025. Diversified Profit Base: Zijin has domestic and international operations in gold, copper, zinc, silver and iron ore. Its businesses range from mining and refining to processing, smelting and trading. The highly diversified businesses allow Zijin to enjoy greater growth potential as it can share the cash flows among projects at different stages of development and reduce cash flow volatility. Its diversified products of both precious and base metals also complement each other during commodity price volatility. Acquisitions Drive Growth: Zijin has been acquisitive since 2018, expanding its gold and copper reserves domestically and overseas. Zijin is sticking to its medium-term production target of mined gold of 80-90 tonnes in 2025 and mined copper of 1 million-1.1 million tonnes in 2025, and long-term goal of becoming a significantly large international mining group. Fitch is assuming CNY5 billion-8 billion in investment cash outflow per year in 2022-2025 for additional M&A in both the traditional and new energy businesses to meet its goals. We think Zijin's strong operating cash flow generation capability will enable it to carry out acquisitions, but we would regard any larger-than-expected aggressive debt-funded investment as an event-driven risk that could pressure its leverage and weigh on its credit profile. DERIVATION SUMMARY Zijin's ratings are comparable with that of global miners such as Canada-based Teck Resources Ltd. (BBB-/Stable). Both have similar business profiles in terms of commodity diversification and solid cost position, and comparable total debt/EBITDA of 2x-3x during 2022-2023. Zijin has better geographical and commodity diversification in both precious and base metals than Freeport-McMoRan Inc. (BBB-/Stable), which has larger scale in copper mining and higher margins. Zijin has better commodity diversification than gold miner Kinross Gold Corporation (BBB/Stable), although it has higher leverage, driven by its past debt-funded M&A. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer - Mined copper average selling price of CNY55,000, CNY49,000 and CNY43,000 per tonne in 2022, 2023 and 2024, respectively (2021: CNY54,000 per tonne); mined gold average selling price of CNY350, CNY312 and CNY274 per gram in 2022, 2023 and 2024 respectively (2021: CNY350 per gram) - Mined copper sales volume of 773,000, 866,000 and 919,000 tonnes in 2022, 2023 and 2024, respectively (2021: 530,000 tonnes); mined gold sales volume of 58, 66 and 71 tonnes in 2022, 2023 and 2024 respectively (2021: 46 tonnes) - Capex of CNY18 billion, CNY18 billion and CNY12 billion in 2022, 2023 and 2024, respectively - Investment outflow of CNY8 billion in 2022 and CNY5 billion per year in 2023 and 2024 - Dividend payout ratio of 34% per year in 2022-2024 RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - FFO net leverage sustained below 2x - Net debt/EBITDA sustained below 1.2x Factors that could, individually or collectively, lead to negative rating action/downgrade: - FFO net leverage sustained above 2.5x - Net debt/EBITDA sustained above 2.2x - Sustained negative free cash flow generation - Significant increase in exposure to markets with high geopolitical and operating environment risks BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579. LIQUIDITY AND DEBT STRUCTURE Adequate Liquidity: Zijin had CNY13.6 billion in unrestricted cash and CNY120 billion in unused bank credit facilities as of end-2021, against CNY27.7 billion in short-term debt, out of which CNY3.3 billion were capital market maturities. Zijin has a multitude of onshore and offshore funding sources, as well as ample liquidity from major banks. It is an active onshore bond issuer. Zijin had a low average borrowing cost of 3.1%-3.2% in 2020-2021. ISSUER PROFILE China-based Zijin was one of the world's 10 largest copper producers, a top-15 gold miner and a top-five zinc producer in 2021 by output. Overseas mines contributed 53% of its copper, 60% of gold and 45% of zinc and lead production in 2021. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Rating Prior ------ ----- Zijin Mining Group Co., Ltd. LT IDR BBB- Upgrade BB+ senior unsecured LT BBB- Upgrade BB+ ========= I N D I A ========= ANAND SHREE: CARE Keeps B Debt Rating in Not Cooperating Category ----------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Anand Shree Infrareality Private Limited (ASIPL) continues to remain in the 'Issuer Not Cooperating ' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 2.00 CARE B; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Short Term Bank 5.00 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 12, 2021, placed the rating(s) of ASIPL under the 'issuer non-cooperating' category as ASIPL 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. ASIPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated December 29, 2021, January 8, 2022 and January 18, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of t he 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). Anand Shree Infrareality Private Limited (ASIPL) was incorporated as a Private Limited Company by Mr. Vijayanand in 2011. The company is engaged in the business of civil construction such as laying of roads and construction of buildings and bridges in the states of Karnataka, Andhra Pradesh and Telangana and is registered contractor with Public Works Depart ment (PWD) and Road and Building Departments (R&B), Karnataka and Telangana. The company also gets the work done while assigning the work to other subcontractors. ARPS TEA: CARE Keeps B+ Debt Rating in Not Cooperating ------------------------------------------------------ CARE Ratings said the rating for the bank facilities of ARPS Tea Company Private Limited (ATCPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.18 CARE B+; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Short Term Bank 0.60 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 9, 2021, placed the rating(s) of ATCPL under the 'issuer non-cooperating' category as ATCPL 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. ATCPL continues to be non-cooperative despite repeated requests for submission of information through e -mails, phone calls and a letter/email dated December 26, 2021, January 6, 2022, January 15, 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). ARPS Tea Company Private Limited (ATCPL) was incorporated in September 2011 for setting up a black tea manufacturing unit in Jalpaiguri, West Bengal. The company has been engaged in production of green leaf and manufacturing of black tea. The manufacturing plant of the company is located at Jalpaiguri, West Bengal with an installed capacity to process green tea leav es of 150,000 kg per annum. Mr. Sajan Tebriwal (Director) who has more than three decades of experience in tea trading business looks after the day to day operation of the company along with other directors named Mr. Anand Tebriwal, Mr. Prasant Kumar Tebriwal, Mr. Deepak Kumar Agrawal and Mr. Sumat Garg along with a team of experienced profession al who are having long experience in similar line of business. BALAJI PAPER: Insolvency Resolution Process Case Summary -------------------------------------------------------- Debtor: Balaji Paper & Newsprint Private Limited 23, Brabourne Road Kolkata 700001 West Bengal Insolvency Commencement Date: May 6, 2022 Court: National Company Law Tribunal, Kolkata Bench Estimated date of closure of insolvency resolution process: November 11, 2022 (180 days from commencement) Insolvency professional: Bijay Murmuria Interim Resolution Professional: Bijay Murmuria 6A Geetanjali 8B Middleton Street Kolkata 700071 E-mail: bijay_murmuria@ sumedhamanagement.com ip.balajipaper@gmail.com Last date for submission of claims: May 20, 2022 BLUEFLAME INDUSTRIES: CARE Cuts Rating on INR6.61cr Loan to B- -------------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Blueflame Industries Private Limited (BIPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.61 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 0.80 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 9, 2021, placed the rating(s) of BIPL under the 'issuer non-cooperating' category as BIPL 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. BIPL continues t o be non-cooperative despite repeated requests for submission of information through e -mails, phone calls and a letter/email dated December 26, 2021, January 6, 2022, January 15, 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 BIPL have been revised on account of non-availability of requisite information. The ratings also factored in significant decline in profitability, fluctuating scale of operations and leveraged capital structure during FY21. Blueflame Industries Private Limited was incorporated in 2015 by Mr. Nitin Punamchand Khara with an objective to enter into LPG cylinder manufacturing and repair business. The company has established a LPG cylinder manufacturing unit at Dhanbad, Jharkhand with an installed capacity of 5,00,000 LPG cylinders per annum. The commercial operation of the company started from January, 2018. The company has also obtained necessary license from the respective authority. The regist ered office of the company is located at Nagpur, Maharashtra. Mr. Nitin Punamchand Khara, having more than three decades of experience in the same line of business, looks after the overall management of the company along with the other directors and supported by the team of experienced professionals. CAPTIVATE FOODS: Insolvency Resolution Process Case Summary ----------------------------------------------------------- Debtor: Captivate Foods Private Limited Survey No. 156/P, Plot No. 2 Village: Naranka Rajkot-Jamnagar Highway B/h. Murlidhar Hotel Paddhari, Rajkot Gujarat 360110 Insolvency Commencement Date: April 25, 2022 Court: National Company Law Tribunal, Ahmedabad Bench Estimated date of closure of insolvency resolution process: October 22, 2022 Insolvency professional: Atul J Sheth Interim Resolution Professional: Atul J Sheth B-27, Saiyam Apartment Near Nehru Nagar, Ambawadi Ahmedabad 380015 E-mail: captivatecirp@gmail.com Last date for submission of claims: May 9, 2022 CHADALAVADA INFRATECH: Liquidation Process Case Summary ------------------------------------------------------- Debtor: Chadalavada Infratech Limited House No. 8-3-988/19 SBH Colony, Sri Nagar Colony Hyderabad, Telangana 500073 India Liquidation Commencement Date: April 18, 2022 Court: National Company Law Tribunal, Hyderabad Bench Date of closure of insolvency resolution process: April 18, 2022 Insolvency professional: Madhusudhan Rao Gonugunta Interim Resolution Professional: Madhusudhan Rao Gonugunta 7-1-285, Flat No. 103 Sri Sai Swapnasampada Apartments Balkampet, Sanjeev Reddy Nagar Hyderabad, Telangana 500038 E-mail: madhucs1@gmail.com cilirp2021@gmail.com Last date for submission of claims: May 17, 2022 CHANDULAL CHANDRAKAR: Insolvency Resolution Process Case Summary ---------------------------------------------------------------- Debtor: Chandulal Chandrakar Memorial Hospital Private Limited Nehru Nagar Chowk, Bhilai Chhattisgarh 490020 Insolvency Commencement Date: May 6, 2022 Court: National Company Law Tribunal, Cuttack Bench Estimated date of closure of insolvency resolution process: November 2, 2022 Insolvency professional: Mr. Jagdish Kumar Interim Resolution Professional: Mr. Jagdish Kumar B-56, Wallfort City Bhatagaon, Ring Road No. 1 Raipur, Chhattisgarh 492001 E-mail: jkparulkar.ip@gmail.com cirp.ccmhpl@gmail.com Last date for submission of claims: May 20, 2022 CLASSIC BOTTLE: Liquidation Process Case Summary ------------------------------------------------ Debtor: Classic Bottle Caps Private Limited E-14/B-1 Extension Mohan Co-Operative Industrial Estate New Delhi DL 110044 Liquidation Commencement Date: April 20, 2022 Court: National Company Law Tribunal, Delhi Bench Date of closure of insolvency resolution process: April 19, 2022 Insolvency professional: Subhash Kumar Kundra Interim Resolution Professional: Subhash Kumar Kundra Primus Insolvency Resolution and Valuation Pvt. Ltd. C4E/135, Janakpuri New Delhi 110058 E-mail: classiccaps@primusresolutions.in Last date for submission of claims: May 19, 2022 DEVI CHAND: CARE Lowers Rating on INR7.30cr LT Loan to B+ --------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Devi Chand And Sons (DCS), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.30 CARE B+; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category and Revised from CARE BB-; Stable Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated February 23, 2021, placed the rating(s) of DCS under the 'issuer non-cooperating' category as DCS 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. DCS continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated January 9, 2022, January 19, 2022, January 29, 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 DCS have been revised on account of non-availability of requisite information. Devi Chand and Sons (DCS) was initially established as a proprietorship concern in 2008 by Mr. Sanjeev Kumar. However, in April 2014, the firm was converted to partnership firm and is currently being managed by Mr. Shubham Singla, Mrs. Santosh Rani and Mr. Satish Kumar as its partners. The firm is engaged in processing of paddy at its manufacturing facility located in District Moga, Punjab. Further, the firm is also engaged in milling of rice on job work basis. DHARANI SUGARS: CARE Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Dharani Sugars and Chemicals Limited (DSCL) continues to remain in the 'Issuer Not Cooperating ' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 573.71 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 27.11 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 18, 2020, placed the rating(s) of DSCL under the 'issuer non-cooperating' category as DSCL had failed to provide information for monitoring of the rating. DSCL continues to be non-cooperative despite repeated requests for submission of information through e-mails dated March 24, 2022, March 29, 2022, and April 8, 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. 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 rating takes into consideration of the Corporate Insolvency Resolution Process (CIRP) initiated and the defaults to the tune of INR540 Cr towards its lenders as disclosed by the company to BSE vide publication dated April 6, 2022. Detailed description of the key rating drivers At the time of previous rating done on April 23, 2021, the following were the rating weaknesses: Key Rating Weaknesses * Continuation of losses resulting in strained liquidity position and delays in debt servicing: The company has been reporting losses in the last few years and in FY21, it has reported a net loss of INR38 Cr resulting in a strained liquidity position and delays in debt servicing. * Cyclicality of Sugar Business: Cyclical nature of sugar industry results in significant impact on operating performance of sugar companies, thereby affecting their debt servicing ability. Only companies which have adequate diversification are insulated from downtrends of the industry. Liquidity: Poor Poor liquidity marked by delays in debt servicing and referral to the corporate insolvency resolution process. Dharani Sugars and Chemicals Limited (DSCL), part of the PGP group of companies based in Tamil Nadu was established in the year 1987 by Dr Palani G Periyasamy and his NRI Associates. The company is engaged in the manufacture of sugar, industrial alcohol, and co-generation of power. DSCL has three sugar mills located across Tamil Nadu. These units are in Dharani Nagar (Tirunelveli Dist.), Sankarapuram (Villupuram Dist.) and Polur (Thiruvannamalai Dist). Aggregate capacity of the company as on March 31, 2018, was 10,000 tonnes of cane crushed per day (TCD), 160 Kilo Liter per day (KLPD) Distillery and 37 MW co-generation plant. DIVYASHAKTI FOODS: CARE Keeps B Debt Rating in Not Cooperating -------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Divyashakti Foods Private Limited (DFPL) 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 26, 2021, placed the rating(s) of DFPL under the 'issuer non-cooperating' category as DFPL 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. DFPL continues to be non-cooperative despite repeated requests for submission of information through e -mails, phone calls and a letter/email dated January 12, 2022, January 22, 2022, February 1, 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 (Madhya Pradesh) based Divya Shakti Fertilizer and Chemicals Private Limited (DSFCPL) was incorporated in March 19, 2008 by Mr. Alok Gupta and Mr. Mohit Airen to set up fertilizer manufacturing plant. Subsequently, it has changed its name from Divya Shakti Fertilizer and Chemicals Private Limited to Divyashakti Foods Private Limited from January 21, 2022. However, it changed the scope of the project and instead of fertilizer project, decided to set up food processing and preservation unit. The unit is proposed to be set up at Tillore Khurd district (Teh: Indore). The unit will be used for proce ssing of vegetables like onion, garlic, spinach, carrots and others. For this, the company will carry out the dehydration process of these vegetables and will sale to the customers as per requirements. ELENA POWER: Insolvency Resolution Process Case Summary ------------------------------------------------------- Debtor: Elena Power and Infrastructure Limited Current address: House No. 854-A, 3rd floor Block E1 Gali No 51 Molarband Extn. Badarpur New Delhi South Delhi DL 110044 Previous addresses: B-91/1, Ground Floor Jawahar Park, Khan Pur New Delhi, DL 110062 - and - A-49, Ground Floor Road No. 4, Mahipalpur New Delhi, DL 110037 Insolvency Commencement Date: May 6, 2022 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: November 1, 2022 Insolvency professional: Mr. Ashok Arora Interim Resolution Professional: Mr. Ashok Arora 281 / Sector 51, Second floor Opp. Amity International School In front of gate no. 2 of Symphony Floors Society Gurgaon, Haryana 122018 E-mail: ashok.arora79@yahoo.com elena.cirp@gmail.com Last date for submission of claims: May 19, 2022 EXQUISITE PRINT: CARE Lowers Rating on INR9.63cr Loan to B- ----------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Exquisite Print And Pack Private Limited (EPPPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 9.63 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 March 3, 2021, placed the rating(s) of EPPPL under the 'issuer non-cooperating' category as EPPPL 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. EPPPL continues to be non-cooperative despite repeated requests for submission of information through e -mails, phone calls and a letter/email dated January 17, 2022, January 27, 2022, February 6, 2022 and April 29, 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 EPPPL have been revised on account of non-availability of requisite information. The ratings also factored in decline in scale of operations, accumulation of overall losses as well as highly leveraged capital structure and weak debt coverage indicators during FY21. Exquisite Print And Pack Private Limited (EPPPL) was incorporated in 2004 to set up a cold storage facility with a storage capacity of 19,300 metric tonnes in Hooghly district of West Bengal. Since its inception, t he company has been engaged in t he business of providing cold storage services primarily for potatoes to farmers and traders. Besides providing cold storage facility, the company also provides interest bearing advances to farmers for their agricultural activities against the receipts of potato stored. The promoters of the company are having more than two decades of experience in the cold storage business and t hey look after the overall management of the company and they are further supported by a team of experienced professionals. FIMA PROPERTIES: Insolvency Resolution Process Case Summary ----------------------------------------------------------- Debtor: M/s Fima Properties Private Limited Flat No. 106 Laxminarayan Apartment Street No. 17, Himayath Nagar Hyderabad 500029, Telangana - and - 6-3-896/95/A, Naveen Nagar Road No. 1, Banjara Hills Hyderabad 500034 Telangana Insolvency Commencement Date: April 11, 2022 Court: National Company Law Tribunal, Hyderabad Bench Estimated date of closure of insolvency resolution process: October 8, 2022 Insolvency professional: Parupudi Srinivasu Interim Resolution Professional: Parupudi Srinivasu D.No. 1-1-191, Flat 301 Siri Laxmi Arcade Chikkadapally Hyderabad 500020 Telangana E-mail: parupudi1954@gmail.com srinivasfppl11985@gmail.com Last date for submission of claims: May 11, 2022 FREEWORLD EXPORTS: Liquidation Process Case Summary --------------------------------------------------- Debtor: Freeworld Exports Private Limited No. 45, 2nd Floor 1st Main Road Gandhi Nagar Adyar, Chennai 600020 Liquidation Commencement Date: May 2, 2022 Court: National Company Law Tribunal, Chennai Bench Date of closure of insolvency resolution process: April 27, 2022 Insolvency professional: Tharuvai Ramachandran Ravichandran Interim Resolution Professional: Tharuvai Ramachandran Ravichandran G3, Block II Shivani Apartments 40 East Coast Road Thiruvanmiyur Chennai 600041 E-mail: trravichandran@yahoo.com freeworldliquidation@gmail.com Last date for submission of claims: May 28, 2022 HOTEL RAJMAHAL: CARE Keeps B- Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Hotel Rajmahal (HR) continues to remain in the 'Issuer Not Cooperating ' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 15.00 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 8, 2021, placed the rating(s) of HR under the 'issuer non-cooperating' category as HR 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. HR continues to be non-cooperative 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). Mr. Debi Prasad Mondal is setting up a luxury hotel cum restaurant under the name "Hotel Raj Mahal" in Birbhum, West Bengal. The hotel has proposed to provide services like multi-cusine restaurant and swimming pool and banquet cum conference room among others. The hotel is expected to comprise of 109 rooms consisting of 93 double room (deluxe), 8 four bedded room and 6 suits. The total cost of the project is INR25.23 crore and the same is funded by promoters contribution of INR10.23 crore and term loan of INR15.00 crore. The hotel is expected to start in two phases. The Phase-I is expected to be completed by March 2019 and the commercial operations expected to start from April 2019. The phase-II and Phase-II is expected to start from January 2020. The financial closure of the aforesaid term loan from the bank is yet to be achieved. Mr. Debi Prasad Mondal (aged 44 years) having almost two decades of experience in hotel and restaurant business. He is proposed to look after the overall management of the firm, with adequate support from a team of experienced personnel. INDUS MOBILE: Liquidation Process Case Summary ---------------------------------------------- Debtor: Indus Mobile Distribution Private Limited Old No. 29, New No. 57 Royapettah High Road Royapettah, Chennai 600014 Liquidation Commencement Date: April 28, 2022 Court: National Company Law Tribunal, Chennai Bench Date of closure of insolvency resolution process: May 2, 2022 Insolvency professional: B. Ramana Kumar Interim Resolution Professional: B. Ramana Kumar 51A, I Floor (Rear) Dr. Ranga Road Mylapore, Chennai 600004 E-mail: ramanakumar@ovopaxlegal.com Last date for submission of claims: May 28, 2022 ISKRUPA MALL: CARE Lowers Rating INR80.85cr LT Loan to D -------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Iskrupa Mall Management Company Private Limited (IMMCPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 80.85 CARE D Revised from CARE C Detailed Rationale & Key Rating Drivers The revision in ratings assigned to the bank facilities of Iskrupa Mall Management Company Private Limited takes into account delay in servicing of its debt repayment obligation. Rating Sensitivities Positive factors * Default free track record of the company for a period of 90 days * Improvement in operating performance and profitability of the company on sustained basis Detailed description of the key rating drivers Key Rating Weaknesses * Delays in Debt Servicing: The company has failed to service its debt repayment obligation. Key Rating Strengths: Not Applicable Liquidity: Poor The company has failed to service its debt repayment obligation. M/s. Iskrupa Mall Management Company Private Limited (IMMCPL) is a wholly owned subsidiary of Bansi Mall Management Co. Private Limited, a company wholly owned by the promoters of Future group led by Mr Kishore Biyani. IMMCPL is engaged in the business of mall management advisory services, space hire, consultancy and fabric trading business. Most of the activities of the company are aligned to the retail business where its associate companies Future Enterprises Limited (FEL) and Future Lifestyle Fashions Limited (FLFL) are engaged. IMMCPL has also emerged as the Innovation and Incubation arm of Future Group with the mandate to integrate consumer insights with design-led thinking and latest developments to develop, prototype and incubate new businesses, ideas for Future Group and some external organizations. IMMCPL seeds innovative initiatives at the confluence of business, design and technology that bring in new thoughts, ideas, products, brands and experiences for business houses, social organizations and government bodies. Its methods include design-led approach towards consumer research, social, community and ethnographic studies and using behavioral sciences to decode consumers and communities. IMMCPL currently derives its revenue from leasing, trading businesses and consultancy services. IMMCPL also owns a property (1.80 lsf) at Vadodara, which has been entirely given on a leave and license basis to Future Lifestyle Fashions Limited (CARE C/CARE A4; Issuer Not Cooperating; CARE D) which is operating its Central brand of lifestyle retail stores at the property. The Mall is situated at Genda (Rhino) Circle, Vadodara and is in close proximity to the bus terminal & railway station. J.M.L. MARKETINGS: CARE Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of J.M.L. Marketings Private Limited (JMPL) continues to remain in the 'Issuer Not Cooperating ' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 34.90 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 5.00 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 11, 2021, placed the rating(s) of JMPL under the 'issuer non-cooperating' category as JMPL 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. JMPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated December 28, 2021, January 7, 2022, January 17, 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). Incorporated in 2004 as a partnership entity, JMPL is promoted by Mr. Anil Arora and Mr. Kimti Lal Arora. The entity was reconstituted as a private limited company in the year 2007. JMPL is the sole distributor for 'Fortune' edible oil brand belonging to the Adani Wilmar Limited across nine zones (i.e. Allahabad, Varanasi, Ghaziabad, Jabalpur, Amritsar, Mumbai, Bhiwandi, Navi Mumbai and Thane). This apart, the company also sells edible oil (procured from the market) under its own brand name (7 brands) through its blending and packaging unit at Naini, Allahabad. KAMAKSHI STEELS: CARE Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Kamakshi Steels Private Limited (KSPL) continues to remain in the 'Issuer Not Cooperating ' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 13.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 2.00 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 17, 2021, placed the rating(s) of KSPL under the 'issuer non-cooperating' category as KSPL had failed to provide information for monitoring of t he rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. KSPL 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). Kamakshi Steels Private Limited (KSPL) was incorporated in December 16, 2003 and is engaged in manufacturing of TMT Rebars and Billets with installed capacity of 36,000 MTPA (for TMT Rebars) at its facilities located at Krishna District, Andhra Pradesh. The TMT Rebar forms major sales component (around 95%) with majority of billets utilized for captive consumption and balance sold in the market. The company produces TMT bars of various sizes viz. 8mm, 10mm, 16mm, 20 mm and 25mm, as per requirements of client. The company usually caters to coastal regions of Andhra Pradesh viz Krishna District, West Godavari, Guntur, Nellore, Chittoor and Prakasham District. KANORIA SUGAR: Insolvency Resolution Process Case Summary --------------------------------------------------------- Debtor: Kanoria Sugar and General Manufacturing Company Limited Captainganj, District Kushinagar Uttar Pradesh 274301 India Insolvency Commencement Date: May 2, 2022 Court: National Company Law Tribunal, Lucknow Bench Estimated date of closure of insolvency resolution process: October 24, 2022 (180 days from commencement) Insolvency professional: Shravan Kumar Vishnoi Interim Resolution Professional: Shravan Kumar Vishnoi BCC Tower, 1008 10th Floor, Arjunganj Nr. Saheed Path Lucknow 226002 E-mail: shravan.vishnoi@yahoo.com Last date for submission of claims: May 11, 2022 KUMAR'S COTEX: Insolvency Resolution Process Case Summary --------------------------------------------------------- Debtor: Kumar's Cotex Limited Dokiparru Village Medikonduru Mandal Guntur Dist Andhra Pradesh Insolvency Commencement Date: May 5, 2022 Court: National Company Law Tribunal, Andhra Pradesh Bench Estimated date of closure of insolvency resolution process: October 31, 2022 Insolvency professional: Rajiv Bajaj Interim Resolution Professional: Rajiv Bajaj B-269, Lower Ground Floor Chhatarpur Enclave, Phase-2 New Delhi 110074 E-mail: rbajajip@gmail.com cirpkumar@gmail.com Last date for submission of claims: May 19, 2022 MAPLE LOGISTICS: Insolvency Resolution Process Case Summary ----------------------------------------------------------- Debtor: Maple Logistics Private Limited E-40/3, Okhla Industrial Estate Phase II New Delhi 110020 - and - F-35/4, Ground Floor Okhla Industrial Estate Phase II New Delhi 110020 Insolvency Commencement Date: April 27, 2022 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: October 22, 2022 (180 days from commencement) Insolvency professional: Mr. Vinod Radhakrishnan Nair Interim Resolution Professional: Mr. Vinod Radhakrishnan Nair A-108, Om Rachana CHS Sector-17, Vashi Navi Mumbai 400705 E-mail: vinod@nairca.com Last date for submission of claims: May 11, 2022 MATA INFRATECH: Insolvency Resolution Process Case Summary ---------------------------------------------------------- Debtor: Sri Mata Infratech Limited 503, Topaz Building Panjagutta, Hyderabad Telangana 500082 Insolvency Commencement Date: May 5, 2022 Court: National Company Law Tribunal, Hyderabad Bench Estimated date of closure of insolvency resolution process: October 24, 2022 Insolvency professional: Naga Bhushan Bhagawati Interim Resolution Professional: Naga Bhushan Bhagawati H.No. 1-1-380/38 Ashok Nagar Extension Hyderabad 500020 E-mail: bnagabhushan@yahoo.com rp.matainfratech@gmail.com Last date for submission of claims: May 19, 2022 MBS IMPEX PRIVATE: Liquidation Process Case Summary --------------------------------------------------- Debtor: MBS Impex Private Limited 5-9-45 Basheerbagh Hyderabad 500063 Liquidation Commencement Date: March 3, 2022 Court: National Company Law Tribunal, Hyderabad Bench Date of closure of insolvency resolution process: March 1, 2022 Insolvency professional: Santosh Bhatia Interim Resolution Professional: Santosh Bhatia D 1101, Lodha Meridian 4th Phase, KPHB Colony J N T U, Kukatpally Hyderabad, Telangana 500072 E-mail: casantoshbhatia@gmail.com Last date for submission of claims: March 31, 2022 MCNALLY BHARAT: Insolvency Resolution Process Case Summary ---------------------------------------------------------- Debtor: McNally Bharat Engineering Company Limited Registered office: 4 Mango Lane Kolkata 700001 Corporate Office Address Ecospace Business Park Campus 2B, 11F/12 Rajarhat, New Town Kolkata 700160 Insolvency Commencement Date: May 4, 2022 Court: National Company Law Tribunal, Kolkata Bench Estimated date of closure of insolvency resolution process: October 26, 2022 Insolvency professional: Mr. Anuj Jain Interim Resolution Professional: Mr. Anuj Jain BSRR & Co. Building No. 10 Tower C, 8th Floor DLF Cyber City Phase II Gurgaon Haryana 122002 E-mail: anujvjain@bsraffiliates.com cirpmcnally@bsraffiliates.com Last date for submission of claims: May 18, 2022 MGI INFRA: CARE Lowers Rating on INR7.35cr LT Loan to D ------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of MGI Infra Private Limited (MGIIPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 7.35 CARE D Revised from CARE B-; Stable Short Term Bank Facilities 6.35 CARE D Revised from CARE A4 Detailed Rationale & Key Rating Drivers The revision in the ratings of MGIIPL takes into consideration delay in servicing of its debt obligations. Rating Sensitivities Positive Factors * Improvement in the liquidity position of the company as reflected from timely servicing of its debt obligations. Detailed description of the key rating drivers Key Rating Weaknesses * Delays in debt servicing: There has been delay in the servicing of its debt obligations due to the stressed liquidity position of the company. The company delayed in repayment of its debt servicing in month of March 2022 due to delay in timely realization of its receivables from government departments. Liquidity: Poor MGIIPL has poor liquidity position marked by lower cash accruals when compared to repayment obligations. Further, working capital limits stood almost fully utilised for the past twelve months ending April 2022. New-Delhi based, MGI Infra Private Limited (MGIIPL), was incorporated in October 2011 by Mr. Hitesh Jaju & Mr. Arvind Rana. The company is engaged in the business of design and erection of pre-engineered steel buildings (PEB) such as residential & commercial buildings and Light Gauge Steel Frame (LGSF) Structure and Dry wall. The client profile comprises government as well as private sector entities. The orders executed for the government entities comprise those obtained through direct bidding as well as those sub-contracted by the primary contractor. It obtains the orders directly from the private sector entities. Besides the company also outsources the orders that it receives as the primary contractor to other parties. MM POLYMERS: CARE Withdraws B- Long-Term Bank Debt -------------------------------------------------- CARE has reaffirmed and withdrawn the outstanding ratings of 'CARE B-; Stable; ISSUER NOT COOPERATING' assigned to the bank facilities of MM Polymers Pvt Ltd (MPPL) with immediate effect. The above action has been taken at the request of MPPL and 'No Objection Certificate' received from the bank that has extended the facilities rated by CARE. 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 Detailed description of the key rating drivers At the time of last rating on October 26, 2021, the following were the rating weaknesses and strengths (updated from information available from client). Key Rating Weaknesses * Modest scale of operation: The scale of operations of the company remained small marked by total operating income of INR36.45 crore in FY21 (INR39.47 crore in FY20). However, the profitability margins of the company improved from 7.78% in FY20 to 11.93% in FY21. * Volatility in raw material prices: The primary raw material used by the company is plastic granules (derivative of crude oil), the prices of which are volatile in nature and move in tandem with the price of crude oil in the international market. The ability of the company t o pass on the increase in plastic granule prices to its customers is limited and is usually accompanied by a time lag which exposes the company's operating margins to fluctuations. * Leveraged capital structure: The capital structure of the company remained leveraged marked by debt equity and overall gearing ratios of 3.06 x and 4.47x respectively as on March 31, 2021. * Highly competitive and fragmented nature of industry: MPPL operates in a highly fragmented market for PET preforms marked by presence of large number of players in the unorganized sector, which accounts for more than 70% of the total domestic turnover. The industry is characterized by low entry barriers due to low technological inputs and easy availability of standardized machinery for production. Also, due to few suppliers of plastic granules, suppliers enjoy high bargaining power. Local players enjoy the benefits of lower cost in terms of proximity to customers and raw material suppliers. Further, due to low product differentiation and value addition, the industry is highly competitive with price being the key differentiating factor. Key Rating Strengths * Experienced promoters with satisfactory track record of operations: MPPL commenced commercial production at its plant in February 2010, thus it has a satisfactory track record of operations. The promoter, Mr. Anil Thourani has more than two decades of experience in pet bottles industry, looks after the day-to-day operations of the company. He is supported by director Mr. Pankaj Thourani has around three years of experience along with a team of experienced professional. M. M. Polymers Pvt. Ltd. (MPPL) was incorporated in May 2009 is engaged in manufacturing of polyethylene terephthalate (PET) preforms with an aggregate installed capacity of 1920 metric tonnes per annum (MTPA) at its plants locat ed at Raipur, Chhattisgarh and Pune (Maharashtra). The company commenced commercial production in February 2010. The product of t he company is mainly used in packaging industry. The company manufactures PET preform in different colors, shapes and sizes ranging from 10 gram to 120 gram. MOTHERS PRIDE: CARE Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Mothers Pride Dairy India Private Limited (MPDIPL) continues to remain in the 'Issuer Not Cooperating ' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 28.50 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 19, 2021, placed the rating(s) of MPDIPL under the 'issuer non-cooperating' category as MPDIPL 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. MPDIPL continues to be non-cooperative despite repeated requests for submission of information through e -mails, phone calls and a letter/email dated January 6, 2022, January 15, 2022, January 25, 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). Mothers Pride Dairy India Private Limited (MPDIPL) was incorporated in September 2014 and is primarily engaged in manufacturing of milk and milk products like Desi Ghee, Paneer, Butter milk, yogurt, flavoured milk and processed milk. The promoters of the company are Mr Anant Kumar Choudhary, Mrs. Shalini Choudhary and Ms. Sonia Gandhi. Mr. Anant Kumar Choudhary is also one of the promoters of SBS Transpole Logistics Private Limited engaged in logistics and have an experience of more than 10 years. They are supported by highly qualified and experienced management team with understanding of the dairy sector. The company has set up a milk processing plant at Anandpur, Bahjoi, Sambhal (U.P.) with an installed capacity of 1.5 LLPD expandable up to 3 LLPD (Lakh litres per day) milk into different products. The company has commenced operations from October 2016 and the products are marketed under the brand "freshmen's valley". NASIR ILAHI: CARE Lowers Rating on INR6cr LT Loan to C ------------------------------------------------------ CARE Ratings has revised the ratings on certain bank facilities of Nasir Ilahi & Co. (NIC), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.00 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 17, 2021, placed the rating(s) of NIC under the 'issuer non-cooperating' category as NIC 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. NIC continues to be non-cooperative despite repeated requests for submission of information through 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 NIC have been revised on account of non-availability of requisite information. Nasir Ilahi & Co. (NIC) was established on June 2017 as a partnership firm by Mr. Nasir Ilahi and Mr. Wasim Ilahi, Mr. Dinesh Singh and Mr. Sukhchain Singh. Firm is engaged in chicken egg hatchery business and its hatchery farm is located in Meerut, Uttar Pradesh. Firm has proposed to sell chicks to bird growers. Firm is planning to develop 4 sheds with 10000 parent broilers each. P SARKAR FABICATORS: Insolvency Resolution Process Case Summary --------------------------------------------------------------- Debtor: P. Sarkar Fabricators Private Limited 119 (Old), 161 (New) Rafi Ahmed Kidwai Road, Kolkata Parganas North WB 700055 IN Insolvency Commencement Date: April 26, 2022 Court: National Company Law Tribunal, Kolkata Bench-I Estimated date of closure of insolvency resolution process: Ocotber 23, 2022 (180 days from commencement) Insolvency professional: Tarun Kumar Ray Interim Resolution Professional: Tarun Kumar Ray 28/2B, K M Naskar Road Binayak, 1st Floor Kolkata 700040 E-mail: tarun.ray123@yahoo.com - and - 29C, Bentick Street 2nd Floor Kolkta 700001 E-mail: tarun58ray@gmail.com Last date for submission of claims: May 10, 2022 PERAMBRA COCONUT: Insolvency Resolution Process Case Summary ------------------------------------------------------------ Debtor: Perambra Coconut Producer Company Limited 11/449A, B, C, D, Chakkittapra Kozhikode KL 673526 IN Insolvency Commencement Date: April 28, 2022 Court: National Company Law Tribunal, Kochi Bench Estimated date of closure of insolvency resolution process: October 25, 2022 (180 days from commencement) Insolvency professional: Prathap Pillai Interim Resolution Professional: Prathap Pillai BLRA 15, Bridge Lane Medical College PO Trivananthapuram 695011 E-mail: prathappillaiadv@gmail.com - and - My home Building Dharmalayam Road Thampanoor 695001 Thiruvanathapuram Tel: 9847727667 Last date for submission of claims: May 17, 2022 POOJA LAND: Insolvency Resolution Process Case Summary ------------------------------------------------------ Debtor: Pooja Land and Premises Private Limited 101, Wing-B, Gharkul Co-Op. Society Azad Road, Misquitta Street Vile Parle (E) Mumbai 400057 Insolvency Commencement Date: April 28, 2022 Court: National Company Law Tribunal, Pune Bench Estimated date of closure of insolvency resolution process: October 16, 2022 Insolvency professional: Mr. Jitendra Palande Interim Resolution Professional: Mr. Jitendra Palande New Ajanta Avenue 5-3/D # 38 Paud Road Kothrud, Pune 411038 E-mail: jitendra@7circles.co.in - and - Office no. 411, Kakade Bizz Icon Premnagar, Shivajinagar Pune, Maharashtra 400005 E-mail: cirp.plappl@7circles.co.in Last date for submission of claims: May 12, 2022 RAJASTHAN DELHI: CARE Lowers Rating on INR9cr LT Loan to B ---------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Rajasthan Delhi Education Society (RDES), 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 1.50 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 18, 2021, placed the rating(s) of RDES under the 'issuer non-cooperating' category as RDES 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. RDES 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 RDES have been revised on account of non-availability of requisite information. Karauli (Rajasthan) based RDES is registered as a society on September 2, 2002 under Rajasthan Societies Registration Act, 1958 with an objective to impart education through educational institutions. The society is presently operating fourteen colleges/institutes in Rajasthan and offers seven degree and diploma courses in Engineering, Pharmacy, Arts and education. S. PRINCE: CARE Keeps B- Debt Rating in Not Cooperating Category ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of S. Prince High Tech Private Limited (SPHTPL) continues to remain in the 'Issuer Not Cooperating ' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.00 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Short Term Bank 3.50 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 12, 2021, placed the rating(s) of SPHTPL under the 'issuer non-cooperating' category as SPHTPL 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. SPHTPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated December 29, 2021, January 8, 2022, January 18, 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). S. Prince High Tech Private Limited (SPHTPL) was originally established in the year 1992 as a proprietorship concern under the name of S. Prince & Co by Dr. Augustine Joseph Stalin which got converted to private limited company in the year 2007. Presently Dr. Augustine Joseph Stalin, Mr. Rajan Siluvapillai, Ms. Augustine Priyedarshini and Mrs. Augustine Marys are the directors of the company. The company is engaged in human resource services, wherein they provide skilled manpower to various thermal power plants across India. SAI INDUSTRIES: Insolvency Resolution Process Case Summary ---------------------------------------------------------- Debtor: Shree Sai Industries Private Limited 127-A Masjid Bunder Darukhana Reay Road Mumbai MH 400010 Insolvency Commencement Date: May 6, 2022 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: November 2, 2022 Insolvency professional: Mr. Vinod Kumar Pukhraj Ambavat Interim Resolution Professional: Mr. Vinod Kumar Pukhraj Ambavat Room No. 40, 9/15 Morarji Velji Bldg 1st Floor Dr M.B. Velkar Street Kalbadevi Road, Mumbai Maharashtra 400002 E-mail: vinod.ambavat@ajallp.com - and - 706, B Block Everest Chamber Near Marol Naka Metro Station Marol Naka, Andheri East Mumbai 400059 E-mail: irp.ssipl@gmail.com Last date for submission of claims: May 20, 2022 SATWIKI PROTEINS: CARE Lowers Rating on INR43.92cr LT Loan to D --------------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Satwiki Proteins Private Limited (SPPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 43.92 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE BB-; Stable Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated March 30, 2022, placed the rating(s) of SPPL under the 'issuer non-cooperating' category as SPPL had failed to provide information for monitoring of t he rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SPPL continues to be non-cooperative despite repeated requests for submission of information through e -mails, phone calls and a letter/email dated January 25, 2021, February 16, 2022, February 24, 2022, March 2, 2022 and May 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). The ratings assigned to the bank facilities of SPPL have been revised on account of on-going delays in debt servicing recognized from verbal feedback from the banker. SPPL was incorporated in 2013 by Mr. Narottam Lal Agarwal, Mr. Vikas Agarwal and Mr. Vivek Kumar Agarwal for extract on of edible oil and manufacturing oiled cake and De-oiled cake (DOC) as well as refining of mustard/soya oil along with extracting edible oil from its solvent extraction plant. SPPL started its commercial production in 2013 and operates out of its sole manufacturing unit located at Jaipur (Rajasthan) having oil extraction capacity of 200 tons per day (TPD), solvent extraction capacity of 500 TPD and refining capacity of 300 TPD as on March 31, 2020. The company sells De-Oiled cakes and edible oil in bulk under its brand "Satwiki Alok" in the domestic market. SKS POWER: Insolvency Resolution Process Case Summary ----------------------------------------------------- Debtor: SKS Power Generation (Chhattisgarh) Limited Unit No. 201 & 207 Centre Point Premises CHS Ltd 2nd Floor, J.B. Nagar Andheri-Kurla Road Andheri (E), Mumbai City Maharashtra 400059 India Insolvency Commencement Date: April 29, 2022 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: October 26, 2022 Insolvency professional: Ashish Arjunkumar Rathi Interim Resolution Professional: Ashish Arjunkumar Rathi 19/503, NRI Complex Sector 54, 56, 58 Seawood, Nerul Navi Mumbai Maharashtra 400706 E-mail: ipashishrathi@gmail.com - and – Office No. B-508 Mahaavir Icon Plot No. 89 Sector 15, CBD Belapur Navi Mumbai, Maharashtra 400614 India E-mail: irp.skspower@gmail.com Last date for submission of claims: May 13, 2022 SOHAN COPPERTECH: CARE Keeps B+ Debt Rating in Not Cooperating -------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Sohan Coppertech Private Limited (SCPL) continues to remain in the 'Issuer Not Cooperating ' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.50 CARE B+; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Short Term Bank 2.00 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 26, 2021, placed the rating(s) of SCPL under the 'issuer non-cooperating' category as SCPL 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. SCPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated January 12, 2022, January 22, 2022, February 1, 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). SCPL was incorporated in 2009 and is based out of Nanded (Maharashtra). The company is a part of the Sohan Group of companies, with business interests spanning healthcare, poultry and copper. SCPL is engaged in manufacturing of copper products at its manufacturing facility located at Nanded (Maharashtra), having an installed capacity of 2,000 Metric Tonnes Per Annum (MTPA). TELTROY VINIMAY: Insolvency Resolution Process Case Summary ----------------------------------------------------------- Debtor: Teltroy Vinimay Private Limited House No. 34, Duragapur Colony New Alipore, Kolkata 700053 Insolvency Commencement Date: April 27, 2022 Court: National Company Law Tribunal, Kolkata Bench-I Estimated date of closure of insolvency resolution process: October 24, 2022 Insolvency professional: Neha Firoda Interim Resolution Professional: Neha Firoda G/H 164, Scheme no. 54 Vijaynagar, Indore Madhya Pradesh 452010 E-mail: caneha.dahiya@gmail.com - and - 101 A, Press Home A B Road, 22 Press Complex Indore, Madhya Pradesh 452008 E-mail: cirp.teltroy@gmail.com Last date for submission of claims: May 11, 2022 TETRADRIP PHARMA: CARE Lowers Rating on INR6.93cr LT Loan to D -------------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Tetradrip Pharma Private Limited (TPPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.93 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 March 30, 2021, placed the rating(s) of TPPL under the 'issuer non-cooperating' category as TPPL 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. TPPL continues to be non-cooperative despite repeated requests for submission of information through e -mails, phone calls and a letter/email dated February 13, 2022, February 23, 2022, March 5, 2022 and May 3, 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 TPPL have been revised on account of on-going delays in debt servicing recognized from publicly available information i.e. audit reports of FY20 and FY21. Tetradrip Pharma Private Limited (TPPL) was incorporated on April 17, 2013 with an objective to enter into the manufacturing of pharmaceutical and medical products. The company has established a manufacturing unit of dialysis material and dry powder injection at Burdwan in west Bengal. The company has started commercial operation of dialysis division from June 2017. The day-to-day operations of the company are looked after by Mr. Arvind Khaitan along with the help of other directors and a team of experienced personnel who are having significant experience in the similar line of business. The benefit derived from the experience directors and healthy relation with customers and suppliers are continuing to support the company. TICEL BIO: CARE Keeps D Debt Rating in Not Cooperating Category --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of TICEL Bio Park Limited (TBPL) continues to remain in the 'Issuer Not Cooperating ' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 61.32 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 10, 2021, placed the rating(s) of TBPL under the 'issuer non-cooperating' category as TBPL 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. TBPL continues to be non-cooperative despite repeated requests for submission of information through e -mails, phone calls and a letter/email dated December 27, 2021, January 6, 2022 and January 16, 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). TICEL was set up in 2004 by Govt. of Tamil Nadu with financial support from Govt. of India. Tamil Nadu Industrial Development Corporation Limited (TIDCO, A Govt. of Tamil Nadu enterprise), TIDEL Park Limited (TIDEL, jointly promoted by TIDCO and Electronics Corporation of Tamil Nadu Limited, another Govt. of Tamil Nadu enterprise), Indian Bank, Karur Vysya Bank and Indian Overseas Bank are the shareholders of the company as on March 31, 2020. TICEL is engaged in development and maintenance of commercial real estate spaces with specific infrastructure and facilities required for biotech companies. UMARAI WORLDWIDE: Liquidation Process Case Summary -------------------------------------------------- Debtor: Umarai Worldwide Private Limited A/8/10, Groma House Sector-19 Plot No. 14C Vashi, Navi Mumbai Thane, Maharashtra 400703 Liquidation Commencement Date: November 3, 2021 Court: National Company Law Tribunal, Mumbai Bench Date of closure of insolvency resolution process: September 1, 2021 Insolvency professional: Krishna Gopal Ratanlal Maheshwari Interim Resolution Professional: Krishna Gopal Ratanlal Maheshwari Primus Insolvency Resolution and Valuation Pvt. Ltd. 408, Manish Chambers Sonawala Road Above Kotak Bank Goregaon (E), Mumbai 400063 E-mail: 1kgmaheshwari@gmail.com umarai@primusresolutions.in Last date for submission of claims: December 2, 2021 ================= I N D O N E S I A ================= GARUDA INDONESIA: Seeks Extension for Debt Restructuring -------------------------------------------------------- Reuters reports that state-controlled carrier Garuda Indonesia has asked a Jakarta court to extend for the third time its deadline to complete its debt-restructuring process, its CEO said, as the verification of claims is still unfinished. Garuda proposed a 30-day extension time to verify claims and finalise negotiation with the creditors, CEO Irfan Setiaputra said during a creditors meeting at the Central Jakarta Commercial Court on May 10, Reuters relates. "We are certain that this will be the last extension that we proposed to the court," he said, adding that negotiations with creditors had progressed in positive way. On March 21, the same court granted a two-month extension until May 20 for the debt-saddled airline to complete the whole court-led restructuring process, according to Reuters. Creditors present at the meeting also agreed with the extension proposal, Asri, one of the curators told reporters. Reuters says the judges will still have to decide on the proposal, however, including the length of extension. Garuda is seeking to slash liabilities of $9.8 billion to $3.7 billion under the debt restructuring. Creditors have submitted $13.8 billion worth of claims against the struggling airline. About Garuda Indonesia Headquartered in Jakarta, Indonesia, government-owned airline PT Garuda Indonesia -- http://www.garuda-indonesia.com/-- currently has a fleet of about 77 aircraft offering service to some 27 domestic and 33 international destinations. Under its Citilink brand, it serves 10 other domestic routes. Garuda also ships about 200,000 tons of cargo a month and operates a computerized tracking system. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 14, 2021, Bloomberg News said the airline entered a court-supervised debt restructuring process after a Jakarta court on Dec. 9, 2021, accepted a debt petition filed against it. Garuda and its creditors have 45 days to complete negotiations, which can be extended to 270 days. Garuda finalized a restructuring proposal in November 2021 and is in discussion with creditors and lessors to reduce its liabilities to US$3.7 billion, from US$9.8 billion, Kartika Wirjoatmodjo, a deputy at Indonesia's state-owned enterprises ministry, told a parliamentary hearing. REJEKI ISMAN: Fitch Affirms 'RD' LongTerm Issuer Default Rating --------------------------------------------------------------- Fitch Ratings has affirmed Indonesia-based textile manufacturer PT Sri Rejeki Isman Tbk's (Sritex) Long-Term Issuer Default Rating (IDR) at 'RD'. At the same time, Fitch Ratings Indonesia has affirmed Sritex's National Long-Term Rating at 'RD(idn)'. Fitch has also affirmed Sritex's outstanding US dollar notes at 'C' with a Recovery Rating of 'RR4'. 'RD' National Ratings indicate an issuer that, in Fitch's opinion, has experienced an uncured payment default on a bond, loan or other material financial obligation but that has not entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedure, and has not otherwise ceased business. KEY RATING DRIVERS Ongoing Restructuring: The debt restructuring plan for all of Sritex's outstanding borrowings has not been finalised. The Semarang regional court ratified Sritex's debt-restructuring proposal through the Suspension of Debt Payment Obligations, or PKPU, process on January 2022. However, the decision has been appealed by some of the company's lenders and is subject to the Indonesian Supreme Court's decision. Sritex's debt restructuring proposal involves the exchange of bonds that were due in 2024 and 2025 for three tranches of secured notes, with maturities of five-nine years, including a convertible note tranche. Weak Cash Flows to Persist: Fitch expects Sritex's cash flows to remain weak in 2022 due to Fitch's expectation of a sluggish demand recovery and its prolonged restructuring process. The availability of working-capital lines forms part of the company's restructuring proposal and the funding is key to the company's recovery. Fitch believes a rapid recovery in its revenue and EBITDA to 2020 levels is unlikely. The absence of available undrawn working-capital facilities and weaker demand due to the Covid-19 pandemic resulted in a 30% yoy decline in Sritex's revenue in 9M21, negative EBITDA of around USD240 million and negative cash flow from operations of USD453 million. Its losses were exacerbated by pandemic-driven rising logistic costs and increasing professional fees due to the debt restructuring. Financial Flexibility and Funding Access: Sritex's business performance and cash flow from operations are heavily dependent on the availability of working-capital facilities to fund the purchase of raw materials, which it is currently meeting through upfront cash payments. Sritex's revenue and profitability recovery in 2022 will likely be restricted by its lack of funding access. DERIVATION SUMMARY Sritex's 'RD' rating reflects the uncured payment default of its debt. KEY ASSUMPTIONS Fitch's Key Assumptions Within Fitch's Rating Case for the Issuer -- No interest and principal to be paid during the restructuring period; -- Revenue will grow at low single digits in 2022 and 2023; -- EBITDA will remain negative in 2022 and gradually improve thereafter; -- Cash flow from operations will remain under pressure in 2022 and 2023; -- Minimal capex in 2022 and 2023 for maintenance purpose only. KEY RECOVERY RATING ASSUMPTIONS The recovery analysis assumes that Sritex would be reorganised as a going-concern in bankruptcy rather than liquidated. Fitch has assumed a 10% administrative claim. The going-concern EBITDA estimate reflects Fitch's view of a sustainable, post-reorganisation EBITDA upon which Fitch bases the enterprise valuation. Fitch estimates EBITDA at USD150 million, around 10% discount to the USD165 million EBITDA in 2017, which was the lowest level during 2017-2020. This is to reflect Sritex's sharp performance deterioration in 2021 due to its restricted access to funding and the pandemic. An enterprise value multiple of 5x EBITDA is applied to the going-concern EBITDA to calculate a post-reorganisation enterprise value. The multiple considers a discount from the median of comparable apparel Asian peers, which are generally larger than Sritex. The going-concern enterprise value corresponds to a 'RR4' Recovery Rating for the senior unsecured notes after adjusting for administrative claims. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- Fitch will reassess Sritex's capital structure after the completion of its debt restructuring. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Fitch will further downgrade the rating to 'D' if Sritex enters into bankruptcy proceedings, administration, receivership, liquidation or other formal winding-up procedures or if it ceases operations. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Insufficient Liquidity: Sritex had a cash balance of around USD45 million at end-September 2021, which includes USD35 million in time deposits. This was significantly lower than Sritex's outstanding debt of around USD1,370 million. Sritex's financial flexibility is significantly reduced due to the absence of available undrawn working-capital facilities. ISSUER PROFILE Sritex is an Indonesia-based textile manufacturer. Its business includes spinning, weaving, and finishing garments. ESG CONSIDERATIONS Sritex has an ESG Relevance Score of '4' for Management Strategy and Governance Structure due to its concentrated ownership structure and the impact of its strategic development and implementation in terms of working-capital management and funding. This has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. DEBT RATING RECOVERY PRIOR ---- ------ ------- ----- PT Sri Rejeki LT IDR RD Affirmed RD Isman Tbk Natl LT RD(idn) Affirmed RD(idn) senior unsecured LT C Affirmed RR4 C Golden Legacy Pte Ltd senior unsecured LT C Affirmed RR4 C STAR ENERGY: Fitch Affirms 'BB-' Rating on $580MM Notes Due 2033 ---------------------------------------------------------------- Fitch Ratings has affirmed Star Energy Geothermal (Wayang Windu) Ltd.'s (SEGWW) USD580 million fully amortising 6.75% senior secured notes due 2033 at 'BB-'. The Outlook is Stable. RATING RATIONALE SEGWW's project in Indonesia benefits from long-term contracts to utilise geothermal resources and sell electricity to state-owned power company PT Perusahaan Listrik Negara (Persero)'s (PLN, BBB/Stable). Its take-or-pay fixed-indexed-tariff electricity sales contract (ESC) with PLN eliminates most volume and merchant price risks. Fitch expects the supply of geothermal resources to be reliable, subject to appropriate and timely well maintenance and drilling of new wells. SEGWW's financial profile under the Fitch rating case shows an average annual debt service coverage ratio (DSCR) of 1.32x with a minimum of 1.19x. SEGWW's low excess operating cash generation could limit the company's ability to fund necessary capex, if it needs to be accelerated, or other unexpected costs, although the company has built cash reserves, providing some cushion. The metrics are appropriate for a 'BB-' rated facility of this type under Fitch's Renewable Energy Project Rating Criteria. KEY RATING DRIVERS Robust Operating Track Record; Fully Exposed to Cost Overruns: Operation Risk - Weaker SEGWW has ample operating experience with very high average availability and capacity factors of more than 96%, excluding a 2015 outage, for both generation units since they started operations. However, SEGWW is exposed to the risks of cost overruns and operational underperformance because it operates the geothermal power plant itself. The power plant suffered an extended outage in 2015 due to a landslide that damaged a steam pipeline. SEGWW has made considerable changes to reduce the probability of such an event recurring. Operating costs in 2021 fell from 2020 due to lower non-linear depreciation of production wells, supply and equipment expense and pension costs. SEGWW has a detailed capital investment plan for drilling new wells and maintaining existing wells until 2033, which external technical consultant GeothermEx has reviewed and is satisfied with. However, GeothermEx has also advised that the nature of geothermal assets means there is considerable uncertainty over the timing of the capex. The lack of a detailed operating cost analysis by a third-party technical advisor constrains our assessment. A reserve account will prefund 25% of the well drilling costs in each half-year period for major drilling programmes with capex exceeding USD100 million over the next two years. The reserve account will also provide for the next six months of planned maintenance costs. Well-Supported Production Forecast: Revenue Risk - Volume: Midrange The volatility and decline inherent in geothermal resources introduce supply risk to electricity generation, but SEGWW has maintained the steam supply through a well intervention programme and drilling for make-up wells. SEGWW's steam supply was 48 kg/second (s) above the target and 126kg/s above the steam requirement by end-2021. Steam supply is well above the 450kg/s requirement for the operation following the make-up well drilling programme in 2020-2021. According to GeothermEx's study in February 2018, the company's existing geothermal resources are sufficient to support 280MW of electricity generation for 30 years or 390MW of electricity generation for 20 years. Curtailment risk is limited by the take-or-pay nature of the ESC, which requires PLN to pay for 95% of the rated capacity of each generator if PLN does not dispatch all the electricity nominated by SEGWW due to failure in its electrical system. Supportive Long-Term Power Purchase Agreement: Revenue Risk - Price - Stronger The electricity tariffs are largely fixed and indexed under the ESC. However, Unit 1 is exposed to potential price renegotiation after 2030. If SEGWW does not receive an acceptable extension by end-2028, the company would be required to add USD50 million to the debt reserve account, providing a cash cushion for the period between 2030 and the scheduled bond maturity in 2033. The tariffs are indexed using straightforward, broad-based publicly available indexation formulas. The tariffs are denominated in US dollars but partially indexed to the dollar-rupiah exchange rate such that SEGWW's revenue in US dollar terms will decline if the Indonesian rupiah depreciates against the US dollar. SEGWW does not enter into foreign-exchange hedges, leaving it exposed to exchange-rate risk. SEGWW is not exposed to merchant price risk since all electricity generated by SEGWW is sold to PLN according to the long-term ESCs. Fully Amortising Debt: Debt Structure - Midrange The senior rank, full amortisation and fixed coupon of the debt are all stronger features. The six-month debt service reserve account is a mid-range attribute, while the lock-up regime, at 1.1x backward-looking DSCR, is not particularly robust and there is no cash-sweep mechanism. The full amortisation that begins in the first year results in steady deleveraging, but the annual cash flows and DSCRs are sensitive to the timing of capex. Incurrence of additional debt would be subject to the requirement for at least 1.3x forward-looking DSCR. However, the issuance of additional debt to fund the development of Unit 3 could expose SEGWW to potentially higher rates at that time, and to possible segregation of the Unit 3 cash flows and security, depending on the type of debt issued. The project debt is denominated in US dollars, providing a natural hedge against US dollar revenue. However, some costs, in particular labour costs, are rupiah-based. Therefore, the project is to some degree exposed to foreign-exchange risk. PEER GROUP Fitch rates the US dollar secured bonds issued by Star Energy Geothermal (Salak-Darajat) Restricted Group (SEGSD RG) at 'BBB-' with a Stable Outlook. SEGSD RG's rating is higher than that of SEGWW as it benefits from economies of scale, a longer operating history, lower capex required per unit of its capacity and stronger reserve requirements within its debt structure. SEGSD RG's rating case DSCR is much higher at 1.63x, supported by a lower initial debt load, despite SEGWW's higher tariffs. SEGSD RG benefits from economies of scale from operating 654.5 MW of installed capacity and diversification across nine generation units in two sites. In comparison, SEGWW operates only two units in a single site with 230.5 MW installed capacity. The Darajat operations, a dry steam reservoir, have cost advantages over Wayang Windu. SEGSD RG has lower capex than SEGWW on a per MW basis. This is because the restricted group operates only five of the nine turbine units, with the remaining four units operated and maintained by PLN. However, SEGWW benefits from higher tariffs. SEGSD RG's debt structure benefits from a stronger reserve feature, with a major maintenance reserve account (MMRA) equal to a third of total capex in the next three years, compared with that of SEGWW, which has an MMRA equal to planned maintenance costs for the next six months and prefunding of 25% of the major drilling programme for each half-year period over the next two years. In addition, SEGSD RG's distribution lock-up ratio of 1.15x 12-month backward-looking DSCR is higher than SEGWW's 1.10x. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: The projected average DSCR dropping below 1.25x in Fitch's rating case. Factors that could, individually or collectively, lead to positive rating action/upgrade: Projected average DSCR above 1.35x in Fitch's rating case. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Sovereigns, Public Finance and Infrastructure issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of three notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. TRANSACTION SUMMARY SEGWW is part of the Star Energy Group, the largest geothermal energy producer in Indonesia and the third largest in the world. SEGWW has the exclusive right to use geothermal resources in the Wayang Windu area in West Java, Indonesia, about 40km south of the city of Bandung. SEGWW operates two power generation units with a combined gross installed capacity of 230.5MW. Unit 1, which has 113.5MW, began commercial operations in June 2000, while Unit 2's 117MW started in March 2009. CREDIT UPDATE SEGWW continued to maintain its strong operational performance, evident from its high availability factor of 98.30% in 2021, marginally better than management projection of 97.10%. Its availability factor in 2021 was lower than 2020 due to the shutdown and turnaround (SDTA) maintenance of Unit 2, which was completed in 9.7 days compared with the target of 16 days. SEGWW achieved this by reusing the existing turbine rotor and stator and resetting it. No SDTA maintenance is planned for 2022 and the next scheduled SDTA is for Unit 1 in 2023. Net capacity fell to 95.20% in 2021 from 96.58% in 2020 due to PLN's curtailment and Unit 2's SDTA maintenance causing marginally lower dispatch. However, curtailment risk is limited because of the take-or-pay arrangement of the ESC with PLN. FINANCIAL ANALYSIS The Fitch base case assumes a capacity factor of 97% for both generation units, and uses management's forecast for operating expense and capex. SEGWW has an average annual DSCR of 1.46x and a minimum DSCR of 1.37x under the base case. The Fitch rating case assumes a capacity factor of 95% for both units, which is equal to the lowest level in recent years. We also assume that major overhauls of the power plants are performed every three years, in line with historical practice, compared with every four years in management's assumptions. Our rating case also applies a 15% stress to management's assumptions for operating expense and a 5% stress to capex. The Fitch rating case results in an average annual DSCR of 1.32x and a minimum DSCR of 1.19x. The achieved coverage level reflects the higher lifecycle capex risks associated with geothermal facilities compared with other renewable projects, and is appropriate for a 'BB-' rating, although it is above the 'BB-' threshold of 1.20x for concentrated solar power projects in Fitch's criteria. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. =============== M A L A Y S I A =============== 1MDB: Goldman Investors Suing Seek Bankers' Testimony on Low ------------------------------------------------------------ Bloomberg News reports that Goldman Sachs Group Inc investors suing the bank over the 1MDB scandal are seeking sworn testimony from three former employees who live in the UK. According to Bloomberg, lawyers for the shareholders told a Manhattan judge in a court filing on May 9 that the testimony of Patrick Kidney, Toby Watson and Cyrus Shey is important to the lawsuit's central claim that Goldman Sachs misled investors about its involvement with the Malaysian sovereign wealth fund and Low Taek Jho, better known as Jho Low, the financier who allegedly was the mastermind behind the looting of the fund. Kidney, Watson and Shey served in roles that make them particularly knowledgeable about the bank's dealings with Low and its work on three bond deals at the center of the corruption scandal totalling US$6.5 billion that brought Goldman Sachs US$600 million in fees, Bloomberg relates citing the filing. Questioning of the three men "will seek to uncover information regarding red flags that arose during the bond approval process and the due diligence practices and procedures employed" by the committees on which they served, according to the filing cited by Bloomberg. Bloomberg relates that Mr. Kidney, who was a member of the bank's anti-money laundering team in London, testified as to warning signs about Low's background in the case of the only Goldman Sachs banker to go to trial over the epic looting of the Malaysian fund. Roger Ng was convicted by a jury in April. The class-action shareholder suit, filed in 2018, is led by Swedish pension fund Sjunde AP-Fonden, Bloomberg discloses. In 2020, a Goldman unit admitted it had conspired to violate US anti-bribery laws, the first guilty plea ever for the firm, founded in 1869. The bank paid more than US$2.9 billion, the largest penalty of its kind in US history, and more than US$5 billion globally for its role in the scheme. Low is a fugitive. The case is Plaut v Goldman Sachs Group Inc, 18-cv-12084, US District Court, Southern District of New York (Manhattan), Bloomberg notes. About 1MDB Kuala Lumpur-based 1Malaysia Development Bhd (1MDB) is an insolvent Malaysian strategic development company, wholly owned by the Malaysian Minister of Finance. 1MDB was established in 2009 to foster long-term economic development for the country by forging global partnerships, particularly in energy, real estate, tourism, and agribusiness. The Company was founded shortly after Dato Sri Najib Razak became Prime Minister of Malaysia in July 2009. Najib said the establishment of 1MDB into a federal entity was to benefit a majority of Malaysians. 1MDB is said to have raised billions of dollars in bonds, for investment projects and joint ventures, between 2009 and 2013. Among those projects are the Tun Razak Exchange, Tun Razak Exchange's sister project Bandar Malaysia, and the acquisition of three independent power producers. The Company came into heavy scrutiny in 2015 for suspicious money transactions and evidence pointing to money laundering, fraud and theft. The corruption scandal in 1MDB has implicated high-level officials, including Prime Minister Najib Razak, as wells as banks and financial institutions around the world. In 2016, the U.S. Department of Justice filed a lawsuit, alleging that at least US$3.5 billion has been stolen from 1MDB. In September 2020, the alleged amount stolen had been raised to US$4.5 billion and a Malaysian government report listed 1MDB's outstanding debts to be US$7.8 billion. Malaysia has been filing lawsuits over the years in an effort to recover the missing billions of dollars. Among others, in May 2021, Malaysia filed 22 civil suits against entities and people involved in the corruption scandal, including units of Deutsche Bank and JP Morgan. Malaysia said in September 2020 it has so far recovered about US$3.24 billion in assets linked to the 1MDB matter. This amount includes about US$600 million cash and assets returned by U.S. authorities; about US$2.5 billion paid by Goldman Sachs as settlement; as well as US$780 million in settlement amounts from Malaysian banking group AmBank and audit firm Deloitte. ===================== N E W Z E A L A N D ===================== BEAUTIFUL REAL: Commences Wind-Up Proceedings --------------------------------------------- Members of Beautiful Real Estate Investment Limited on May 6, 2022, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Grant Reynolds Reynolds & Associates Limited PO Box 259059 Botany, Auckland 2163 EH CIVIL: Creditors' Proofs of Debt Due on July 9 ------------------------------------------------- Creditors of EH Civil Limited are required to file their proofs of debt by July 9, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 10, 2022. The company's liquidator is: Garry Whimp Blacklock Rose Limited PO Box 6709,Victoria Street West Auckland 1142 JONESY CONSTRUCTION: Creditors' Proofs of Debt Due on June 10 ------------------------------------------------------------- Creditors of Jonesy Construction Limited are required to file their proofs of debt by June 10, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 11, 2022. The company's liquidators are: David Ian Ruscoe Raymond Paul Cox Grant Thornton New Zealand PO Box 10712 Wellington LANDSCAPE PROPERTY: Creditors' Proofs of Debt Due on July 6 ----------------------------------------------------------- Creditors of Landscape Property Limited are required to file their proofs of debt by July 6, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 6, 2022. The company's liquidator is: Janet Sprosen KPMG Auckland 18 Viaduct Harbour Avenue (PO Box 1584) Shortland Street Auckland 1140 NZ CLEANING: Creditors' Proofs of Debt Due on June 17 ----------------------------------------------------- Creditors of NZ Cleaning Limited are required to file their proofs of debt by June 17, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 27, 2022. The company's liquidator is: Kelera Nayacakalou 2 Foxbury Court Hamilton 3210 ================= S I N G A P O R E ================= APOLLO AQUACULTURE: Court Enters Judicial Management Order ---------------------------------------------------------- The High Court of Singapore entered an order on May 4, 2022, to place the operations of Apollo Aquaculture Group Private Limited under Judicial Management. The company's Judicial Managers are Tan Wei Cheong and Lim Loo Khoon of Deloitte. MOO CHOO: Commences Wind-Up Proceedings --------------------------------------- Members of Moo Choo Enterprises Pte. Ltd. on April 29, 2022, passed a resolution to voluntarily wind up the company's operations. The company's liquidators are: Jason Kardachi Patrick Bance Kroll Pte. Limited 1 Raffles Place Tower 2 #10-62 Singapore 048616 RED LION: Creditors' Proofs of Debt Due on June 13 -------------------------------------------------- Creditors of The Red Lion (BP) Pte Ltd are required to file their proofs of debt by June 13, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 29, 2022. The company's liquidators are: Hamish Alexander Christie c/o 1 Raffles Place, #10-62 One Raffles Place, Tower 2 Singapore 048616 TAIGER SINGAPORE: Commences Wind-Up Proceedings ----------------------------------------------- Members of Taiger Singapore Pte Ltd, on April 29, 2022, passed a resolution to voluntarily wind up the company's operations. The company's liquidators are Mr. Joshua James Taylor and Ms. Chew Ee Ling of Alvarez & Marsal (SE Asia). ================= S R I L A N K A ================= [*] Fitch Puts 12 Sri Lankan Non-Bank Entities on Rating Watch Neg. ------------------------------------------------------------------- Fitch Ratings has placed the National Long-Term Ratings of 12 Sri Lankan non-bank financial institutions (NBFIs) on Rating Watch Negative (RWN). The entities are: Finance and Leasing Companies: -- Bimputh Finance PLC (Bimputh) -- CBC Finance LTD (CBCF) -- Central Finance Company PLC (CF) -- Fintrex Finance Limited (Fintrex) -- HNB Finance PLC (HNBF) -- LB Finance PLC (LB) -- Mercantile Investments and Finance PLC (MIF) -- People's Leasing & Finance PLC (PLC) -- Sarvodaya Development Finance Limited (SDF) -- Senkadagala Finance PLC (Senka) -- Siyapatha Finance PLC (Siyapatha) Securities Firm: -- Asia Securities (Pvt) Ltd (ASPL) The RWN reflects heightened downside risks to the NBFIs' credit profiles amid increased economic and financial-market volatility in Sri Lanka. This risk is exacerbated by the deteriorating sovereign credit profile (Long-Term Foreign-Currency Issuer Default Rating (IDR): C, Long-Term Local-Currency IDR: CCC) and the ensuing risks to the stability of the financial system. Fitch will review the National Ratings of financial-institution subsidiaries of Sri Lankan corporates that are not included above separately, if needed. DEBT RATING PRIOR ---- ------ ----- People's Leasing Natl LT A+(lka) Rating Watch On A+(lka) & Finance PLC senior unsecured Natl LT A+(lka) Rating Watch On A+(lka) Senkadagala Natl LT BBB+(lka) Rating Watch On BBB+(lka) Finance PLC subordinated Natl LT BBB-(lka) Rating Watch On BBB-(lka) Asia Securities Natl LT BBB-(lka) Rating Watch On BBB-(lka) (Pvt) Ltd Bimputh Finance Natl LT CC(lka) Rating Watch On CC(lka) PLC Fintrex Finance Natl LT B+(lka) Rating Watch On B+(lka) Limited Central Finance Natl LT A+(lka) Rating Watch On A+(lka) Company PLC LB Finance PLC Natl LT A-(lka) Rating Watch On A-(lka) senior unsecured Natl LT A-(lka) Rating Watch On A-(lka) subordinated Natl LT BBB(lka) Rating Watch On BBB(lka) Mercantile Natl LT BBB-(lka) Rating Watch On BBB-(lka) Investments and Finance PLC Siyapatha Finance Natl LT A(lka) Rating Watch On A(lka) PLC subordinated Natl LT BBB+(lka) Rating Watch On BBB+(lka) senior unsecured Natl LT A(lka) Rating Watch On A(lka) HNB Finance PLC Natl LT A(lka) Rating Watch On A(lka) subordinated Natl LT BBB+(lka) Rating Watch On BBB+(lka) CBC Finance LTD Natl LT A(lka) Rating Watch On A(lka) Sarvodaya Natl LT B+(lka) Rating Watch On B+(lka) Development Finance Limited KEY RATING DRIVERS NATIONAL RATINGS BASED ON STANDALONE ASSESSMENTS: PLC, CF, LB, Senka, MIF, Fintrex, SDF, Bimputh, ASPL The NBFIs' credit profiles are being pressured by Sri Lanka's challenging operating environment, with significant near- to medium-term downside risk presented by the weakening sovereign credit profile. This could further impair the economy and weigh on financial market performance, raising downside risks to NBFIs' asset quality and earnings. Fitch also believes that finance and leasing companies may be more susceptible to interest-rate risk in the current rising interest rate environment, as their mostly fixed-rate loans reprice more slowly than their liabilities. Fitch views NBFIs' funding and liquidity conditions as tied to the funding and liquidity positions of Sri Lanka's banks, due to direct funding and deposit relationships as well as the banking sector's importance to the domestic financial system. Fitch believes that any signs of funding or liquidity stress in the banking sector would carry contagion risks for NBFIs. In particular, any restrictions on banks' ability to service their obligations are likely to be extended to finance and leasing companies, while entities that rely on local banks to hedge their foreign-currency obligations may be subject to counterparty risk on these exposures. Fitch aims to resolve the RWN in the next six months, depending on developments in the operating environment and the evolution of the NBFIs' funding and liquidity positions, which could result in multiple notch downgrades. NATIONAL RATINGS BASED ON INSTITUTIONAL SUPPORT: CBCF, HNBF, Siyapatha The RWN on CBCF, HNBF and Siyapatha follows the RWN that was placed on the National Ratings of the NBFIs' parents on 12 April 2022; Commercial Bank of Ceylon PLC (AA-(lka)/RWN), Hatton National Bank PLC (AA-(lka)/RWN) and Sampath Bank PLC (AA-(lka)/RWN)), respectively. See Fitch Places 13 Sri Lankan Banks on Rating Watch Negative SENIOR DEBT The RWN on the ratings of PLC, LB and Siyapatha's senior debentures, where assigned, stems from the RWN on the NBFIs' National Long-Term Ratings. Sri Lanka rupee-denominated senior debt, where applicable, is rated at the same level as the National Long-Term Rating, in accordance with Fitch criteria. This is because the issues rank equally with the claims of the entities' other senior unsecured creditors. SUBORDINATED DEBT The RWN on the subordinated debt ratings of LB, Senka, HNBF and Siyapatha also stems from the RWN on the corresponding National Long-Term Ratings. Sri Lanka rupee-denominated subordinated debt, where applicable, is rated two notches below the National Long-Term Ratings. This is in line with Fitch's baseline notching for loss severity for this type of debt and Fitch's expectations of poor recovery. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: NATIONAL RATINGS BASED ON STANDALONE ASSESSMENTS: PLC, CF, LB, Senka, MIF, Fintrex, SDF, Bimputh, ASPL A deterioration in the NBFI's credit profiles relative to other local Fitch-rated entities may result in negative rating action, including multiple-notch downgrades. This would include: -- Greater worsening in asset quality and profitability relative to peers, leading to severe capital erosion -- Weakening funding and liquidity profiles, which may be indicated by an outsized decline in the deposit base or liquidity buffer, narrowing or negative liquidity gaps, or greater pressure on funding costs relative to peers. Other triggers that could lead to multiple-notch downgrades include: -- Inability to service entities' obligations as a result of asset-liability mismatches, funding stress or significant intervention by authorities; -- A temporary negotiated waiver or standstill agreement following a payment default on a large financial obligation, or where Fitch believes an entity has entered into a grace or cure period following non-payment of a large financial obligation. A downgrade of the sovereign rating stemming from a default event could also lead to a downgrade of the NBFIs' ratings. NATIONAL RATINGS BASED ON INSTITUTIONAL SUPPORT: CBCF, HNBF, Siyapatha The parents' weaker ability to provide support to their finance subsidiaries, as signaled through a downgrade of the parents' National Long-Term Ratings, could lead to negative action. The ratings may also be downgraded if Fitch perceives a weakening in the parents' propensity to support their finance subsidiaries due to weakening links. SENIOR AND SUBORDINATED DEBT Senior and subordinated debt ratings will move in tandem with the National Long-Term Ratings. Factors that could, individually or collectively, lead to positive rating action/upgrade: -- There is limited scope for upward rating action given the RWN. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS The ratings of CBCF, HNBF and Siyapatha are driven by institutional support from their parents. This report was prepared by Fitch in English only. The company may prepare or arrange for translated versions of this report. In the event of any inconsistency between the English version and any translated version, the former shall always prevail. ********* 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 publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. *** End of Transmission ***