/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/220513.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, May 13, 2022, Vol. 25, No. 90 Headlines A U S T R A L I A BLUELINE SERVICES: Second Creditors' Meeting Set for May 19 CREGGS ASPHALT: Second Creditors' Meeting Set for May 19 FRANCO'S SMASH: First Creditors' Meeting Set for May 20 PROGRESS TRUST 2022-1: S&P Assigns (P)BB Rating on Cl. E Notes ROTECH SYSTEMS: Second Creditors' Meeting Set for May 19 C H I N A CHINA HONGQIAO: Moody's Alters Outlook on 'Ba3' CFR to Positive JIANGSU ZHONGNAN: S&P Withdraws CCC+ Issuer Credit Rating JIAYUAN INT'L: Moody's Cuts CFR to B3 & Alters Outlook to Negative KAISA GROUP: Chair's Bel-Air Villa in HK Up for Sale at Discount SUNAC CHINA: Misses Bond Repayment, Expects to Miss More ZHONGLIANG HOLDINGS: Fitch Cuts Foreign Currency IDR to 'C' I N D I A AADYA MOTOR: CRISIL Keeps D Debt Ratings in Not Cooperating AARVEE INTERNATIONAL: CRISIL Keeps D Ratings in Not Cooperating ARIHANT INFRA: CRISIL Keeps B Debt Rating in Not Cooperating ASHOKA MANUFACTURING: CRISIL Keeps D Ratings in Not Cooperating ATC CHEMICALS: CRISIL Keeps B Debt Ratings in Not Cooperating BALAJI POLYSACKS: CRISIL Keeps D Debt Ratings in Not Cooperating BASE CORP: Liquidation Process Case Summary C P ISPAT: CRISIL Keeps D Debt Ratings in Not Cooperating CANVASFLIP SOLUTIONS: Voluntary Liquidation Process Case Summary CLAYRIS CERAMICS: CRISIL Keeps D Debt Ratings in Not Cooperating DONGWON TECH: Voluntary Liquidation Process Case Summary E C BOSE: CRISIL Keeps D Debt Ratings in Not Cooperating ELEMENTIAL LABS: Voluntary Liquidation Process Case Summary GOUTHAMI HATCHERIES: CRISIL Keeps D Ratings in Not Cooperating GREATEASTERN UDYOG: CRISIL Lowers Rating on INR10cr Loan to B GREEN POWER: CRISIL Withdraws D Rating on INR105cr Loans GUJARAT EXPORT: CRISIL Keeps D Debt Ratings in Not Cooperating JAYALAXMI MINERALS: CRISIL Lowers Rating on INR11cr Loans to B LAXMI NARASIMHA: CRISIL Keeps B Debt Rating in Not Cooperating MATESHWARI PAPER: CRISIL Moves B+ Ratings to Not Cooperating MOHTA PLYWOOD: CRISIL Keeps D Debt Ratings in Not Cooperating OVERSEAS TRADERS: CRISIL Moves D Debt Ratings to Not Cooperating POPSHOP COMMERCE: Voluntary Liquidation Process Case Summary PRACHIN FOUNDATION: CRISIL Keeps D Ratings in Not Cooperating PREMINEN PRICE: Voluntary Liquidation Process Case Summary RCG GLOBAL: Voluntary Liquidation Process Case Summary SHIV SAI METAL: Insolvency Resolution Process Case Summary SHRIRAM SEPL: Liquidation Process Case Summary SUBHASHRI BIO-ENERGIES: Liquidation Process Case Summary SUPER WOODWELL: Voluntary Liquidation Process Case Summary VISHNUSHIVA INFRA: CRISIL Keeps D Debt Ratings in Not Cooperating WAYNE-BURT AEROSPACE: Liquidation Process Case Summary M O N G O L I A CAPITRON BANK: Moody's Alters Outlook on B3 Deposit Ratings to Neg. N E W Z E A L A N D BRANDS AUSTRALASIA: Creditors' Proofs of Debt Due on June 13 ORANGE SERVICE: Court to Hear Wind-Up Petition on May 20 VERSO ARCHITECTURE: Creditors' Proofs of Debt Due on June 12 YOT LIMITED: Court to Hear Wind-Up Petition on May 20 S I N G A P O R E AURUME VENTURES: Court Enters Wind-Up Order KITCHEN CULTURE: No Further Action From Police on SGD10,000 Drawn MICROSOFT SINGAPORE: Creditors' Proofs of Debt Due on June 11 NGNG PTE: Court to Hear Wind-Up Petition on May 20 PUMA ENERGY: Moody's Affirms 'B1' CFR, Outlook Remains Stable SUPERNOVA ENTERPRISES: Creditors' Proofs of Debt Due on June 11 S R I L A N K A SRI LANKA: Central Bank Chief Threatens to Quit Amid Tumult - - - - - ================= A U S T R A L I A ================= BLUELINE SERVICES: Second Creditors' Meeting Set for May 19 ----------------------------------------------------------- A second meeting of creditors in the proceedings of Blueline Services Pty Ltd has been set for May 19, 2022, at 10:00 a.m. via Zoom Videoconferencing 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 18, 2022, at 4:00 p.m. Bradd William Morelli and Stewart William Free of Jirsch Sutherland were appointed as administrators of Blueline Services on April 4, 2022. CREGGS ASPHALT: Second Creditors' Meeting Set for May 19 -------------------------------------------------------- A second meeting of creditors in the proceedings of Creggs Asphalt Pty Ltd has been set for May 19, 2022, at 10:00 a.m. via virtual meeting. 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 April 1, 2022, at 4:00 p.m. Adam Peter Kersey and David Michael Stimpson of SV Partners were appointed as administrators of Adam Peter Kersey and David Michael Stimpson on April 1, 2022. FRANCO'S SMASH: First Creditors' Meeting Set for May 20 ------------------------------------------------------- A first meeting of the creditors in the proceedings of Franco's Smash Repairs Pty. Limited will be held on May 20, 2022, at 10:00 a.m. via virtual meeting. Daniel Robert Soire and Michael Gregory Jones of Jones Partners were appointed as administrators of Franco's Smash on May 10, 2022. PROGRESS TRUST 2022-1: S&P Assigns (P)BB Rating on Cl. E Notes -------------------------------------------------------------- S&P Global Ratings assigned its preliminary ratings to seven classes of prime residential mortgage-backed securities (RMBS) to be issued by Perpetual Trustee Co. Ltd. as trustee for Progress 2022-1 Trust. Progress 2022-1 Trust is a securitization of prime residential mortgages originated by AMP Bank Ltd. S&P said, "The preliminary ratings reflect our view of the credit risk of the underlying collateral portfolio and the credit support provided to each class of notes are commensurate with the ratings assigned. Credit support is provided by subordination, lenders' mortgage insurance (LMI), and excess spread, if any. Our assessment of credit risk takes into account AMP Bank's underwriting standards and approval process, which are consistent with industrywide practices, the servicing quality of AMP Bank, and the support provided by the LMI policies on 29.0% of the portfolio. "We believe the rated notes can meet timely payment of interest and ultimate payment of principal under the rating stresses. Key rating factors are the level of subordination provided, the LMI cover, the interest-rate swap, the mechanism for trapping excess spread into an excess reserve, the provision of a liquidity reserve, and the provision of an income reserve--funded by AMP Bank at closing to cover extraordinary expenses--sized at a level consistent with the ratings. All rating stresses are made on the basis that the trust does not call the notes at or beyond the first call-option date, and that all rated notes must be fully redeemed via the principal waterfall mechanism under the transaction documents. "Our ratings also consider the counterparty exposure to Westpac Banking Corp. and MUFG Bank Ltd. as bank account providers and to BNP Paribas as fixed-rate swap provider. The fixed-rate swap will be provided to hedge the fixed-rate mortgage loans and the floating-rate obligations on the notes. The transaction documents include downgrade remedies consistent with our counterparty criteria. The legal structure of the trust is established as a special-purpose entity and meets our criteria for insolvency remoteness." Preliminary Ratings Assigned Progress 2022-1 Trust Class A1-S, A$75.00 million: AAA (sf) Class A1-L, A$385.00 million: AAA (sf) Class AB, A$18.65 million: AAA (sf) Class B, A$8.10 million: AA (sf) Class C, A$6.30 million: A (sf) Class D, A$3.30 million: BBB (sf) Class E, A$1.80 million: BB (sf) Class F, A$1.85 million: Not rated ROTECH SYSTEMS: Second Creditors' Meeting Set for May 19 -------------------------------------------------------- A second meeting of creditors in the proceedings of Rotech Systems Pty. Ltd., trading as Rotech Auto Electrical, has been set for May 19, 2022, at 10:00 a.m. via teleconference facilities. 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 4:00 p.m. Stephen Dixon of Hamilton Murphy Advisory was appointed as administrator of Rotech Systems on April 4, 2022. ========= C H I N A ========= CHINA HONGQIAO: Moody's Alters Outlook on 'Ba3' CFR to Positive --------------------------------------------------------------- Moody's Investors Service has changed to positive from stable the outlook on China Hongqiao Group Limited. At the same time, Moody's has affirmed Hongqiao's Ba3 corporate family and B1 senior unsecured ratings. "The change in outlook to positive from stable reflects company's, strengthened capital structure with debt reduction, excellent liquidity and balanced funding access; together leading to solid credit profile with debt leverage likely staying below 2.5x over the next 12 to 18 months which is strong for its rating category," says Roy Zhang, a Moody's Vice President and Senior Analyst. "The rating affirmation reflects company's better-than-expected financial results and supportive industry conditions; which provide buffer for its credit profile against industry volatility," adds Zhang. RATINGS RATIONALE Hongqiao's Ba3 CFR reflects its leading position in the aluminum industry, long operating history and advanced low-cost production facilities. The rating also reflects Hongqiao's vertically integrated business model, which has resulted in strong profitability and high utilization compared with those of its domestic peers. On the other hand, Hongqiao's rating is constrained by the cyclicality of the aluminum industry, regulatory risks, its concentrated ownership and aggressive expansion in the past. Hongqiao's revenue grew 32.9% to RMB114.5 billion in 2021, mainly driven by higher average selling prices. The company managed to pass on cost inflation and expanded its EBITDA to RMB34.1 billion in 2021, up 38.6%. Its financial leverage, measured by total debt to EBITDA, declined to 1.9x as of the end 2021, providing sufficient buffer for its current rating level. Moody's expects the company to sustain its leverage below 2.5x over the next 12 to 18 months, supported by the company's efforts to reduce debt as well as its decent profitability given aluminum prices remain supportive. Hongqiao has lowered its total debt to RMB61.2 billion as of the end of 2021, from RMB75.5 billion as of the end of 2020. Strong operating cash flow and an equity fundraising helped with debt reduction. The company still held RMB49.2 billion cash on hand as of the end of 2021. This provides the company with financial flexibility to further reduce its debt while maintaining good liquidity. Its cash to short term debt ratio has increased to 1.6x as of the end of 2021. With Hongqiao's higher margins, lower leverage and better liquidity, Moody's sees improving funding access for the company. Hongqiao has raised equity and convertible bonds in 2021. It has also raised bonds in the onshore and offshore markets at costs that were much lower than that in the past three years. Aluminum prices have risen to over RMB22,000 per ton in March 2022, a record high level compared with that over the past five years. Moody's expects supply-side reforms to support aluminum prices in China despite some volatility. This level of aluminum prices will provide additional benefit to Hongqiao's cash flow generation and deleveraging. Hongqiao's liquidity is very good. The company had cash and cash-like sources of about RMB49.2 billion as of the end 2021. This, together with its projected strong operating cash flow, is sufficient to cover its short-term debt and other financial obligations over the next 12 to 18 months. The B1 senior unsecured bond rating is one notch lower than it would otherwise be due to structural subordination risk. This risk reflects the fact that the majority of Hongqiao's claims are at its operating subsidiaries and have priority over its senior unsecured claims at the holding company in a bankruptcy scenario. Hongqiao's rating also takes into account the following environmental, social and governance (ESG) considerations. The company's bauxite mining, power generation, alumina refinery and aluminum smelting operations are exposed to high environmental and safety risks. However, these risks are mitigated by its good operating track record and continued investment in related processes and facilities to meet higher standards. The company is migrating its facilities to Yunnan province, where it can use hydro power to replace coal-fired power for its operations. On the governance front, the company has a record of aggressive expansion and changing auditors historically, while its ownership is concentrated in its key shareholder, Mr. Zhang's family, who together held a 66.6% stake in the company as of the end of 2021. These risks are partially tempered by stronger board oversight exercised through the presence of a strategic minority shareholder, CITIC Group Corporation (A3 stable). At the same time, company has demonstrated prudent financial management with absolute debt reduction, cautious management and cost control in recent years. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could upgrade the rating if Hongqiao (1) maintains sound corporate governance standards, (2) demonstrates a track record of maintaining its strong financial profile through the industry cycle and the use of free cash flow or equity to fund its growth and debt repayment; and (3) maintains its solid liquidity profile such as cash/short-term debt above 1.2x. Moody's could revise the outlook to stable if (1) Hongqiao's operations weaken as a result of an industry downturn or adverse regulatory change; (2) the company fails to adhere to prudent financial management and sound corporate governance standards; (3) its cost competitiveness and market position deteriorate; (4) there is a material weakening in its credit metrics, with its adjusted debt/EBITDA rising above 3.5x; or (5) its liquidity worsens. The principal methodology used in these ratings was Steel published in November 2021. Founded in 1994 and headquartered in Zouping, Shandong Province, China Hongqiao Group Limited is one of the largest aluminum manufacturers in China and globally by production volume. The company listed on the Hong Kong Stock Exchange in March 2011. As of the end of 2021, China Hongqiao Group Limited was 66.6% owned by Mr. Zhang's family, 12.7% by CITIC Group Corporation. The company posted revenue of RMB114.5 billion in 2021. JIANGSU ZHONGNAN: S&P Withdraws CCC+ Issuer Credit Rating --------------------------------------------------------- S&P Global Ratings, on May 10, 2022, lowered its long-term issuer credit rating on Jiangsu Zhongnan Construction Group Co. Ltd. (Zhongnan) to 'CCC+' from 'B-'. S&P also lowered its long-term issue rating on the U.S. dollar-denominated notes that the company guarantees to 'CCC' from 'CCC+'. Subsequently, S&P withdrew its issuer credit rating and issue rating on Zhongnan at the company's request. The rating outlook was negative at the time of the withdrawal. S&P said, "We lowered the rating because we view Zhongnan's capital structure as unsustainable.In our view, the company would face difficulties in managing an orderly debt reduction amid weakening funding channels. Zhongnan's funding avenues haves narrowed significantly in the second half of 2021, with an 18% decline in bank borrowings and a 19% fall in reported debt during the period. We estimate the company's adjusted debt will further decline by 10%-15% in 2022 as it continuously pays off debt while new financings falter. In the first quarter of 2022, Zhongnan's reported debt dropped by about 10%, according to its unaudited quarterly report. "We believe narrowing funding channels would cause financial institutions to accelerate reduction in exposure to Zhongnan, further weakening the company's capital structure. Zhongnan's high exposure to nonbank financing, which accounted for about 35% of its reported debt as of 2021 year end, could further worsen the issue. Such financing has a shorter tenor, and rolling over or replacing them with longer-tenor construction loans is highly uncertain, especially amid the currently unfavorable market sentiment. "We believe Zhongnan's liquidity would be further stressed due to declining sales.The company's contracted sales declined 69% in the first four months of 2022 compared with last year. Further moderation is possible due to COVID-19-related restrictions in the Yangtze River Delta, where Zhongnan has a relatively high exposure. We estimate the company's sales will decline by about 30% in 2022. This will further slow its cash flow generation and weaken its liquidity." Zhongnan's unrestricted cash can cover its capital market financings that mature in 2022, despite notable cash depletion since June 2021. The company has US$223 million (about RMB1.5 billion) bonds maturing and RMB3.6 billion domestic bonds puttable in 2022, compared with unrestricted cash of RMB14.5 billion as of Dec. 31, 2021. However, S&P believes most of the cash is held by project companies, and Zhongnan's access to it is uncertain. S&P said, "The negative outlook before the withdrawal reflected our expectation that Zhongnan's liquidity may deteriorate over the next 12 months. In our view, the company is vulnerable to further tightening of financing channels. In particular, financial institutions could continue to lower their exposure to the company. That said, we believed Zhongnan would utilize internal resources to address its maturities in the next 12 months. "We could have lowered the rating if Zhongnan's liquidity further weakened, or if the company faced difficulty in tackling its maturities over the next 12 months. Indications of this would have been: (1) financial institutions continuously lowering their exposure to Zhongnan; or (2) the company depleting its accessible cash balance faster than we expect. "We could have raised the rating if operating conditions in China's property sector and Zhongnan's access to funding improved materially, so that the company could considerably strengthen its liquidity and deleverage in a more orderly fashion." ESG credit indicators: To E-3, S-2, G-4; From E-3, S-2, G-3 Governance factors are now a negative consideration in S&P's credit rating analysis because it believes the inconsistency between the company's profit warning and actual financial performance for 2021 reflects weakness in financial communication and reporting transparency. JIAYUAN INT'L: Moody's Cuts CFR to B3 & Alters Outlook to Negative ------------------------------------------------------------------ Moody's Investors Service has downgraded Jiayuan International Group Limited's corporate family rating to B3 from B2 and its senior unsecured rating to Caa1 from B3. Moody's has also changed the outlook to negative from ratings under review. This concludes its review for downgrade initiated on March 7, 2022. "The downgrade reflects Jiayuan's increasing refinancing risk, driven by its weakening liquidity and material amount of offshore bonds maturing in the next 12-18 months," says Kelly Chen, a Moody's Vice President and Senior Analyst. "The negative outlook reflects the uncertainties over Jiayuan's ability to raise new funding to manage the company's refinancing needs in the next 12-18 months," adds Chen. RATINGS RATIONALE Moody's expects Jiayuan's contracted sales to decline over the next 6-12 months because of weak consumer sentiment and challenging operating conditions. This will reduce the company's operating cash flow and, in turn, its liquidity. Jiayuan's contracted sales fell 42% from the previous year in the first three months of 2022. In addition, Moody's expects Jiayuan's liquidity to weaken over the next 12 months as the company will use internal resources to repay maturing debt absent any new fundraising amid the tough funding environment, which will exacerbate the company's liquidity pressure. Jiayuan relies heavily on offshore bond markets for financing, which accounted for 43% of its total debt as of the end of 2021. In particular, Jiayuan will have USD200 million of offshore bonds coming due in October 2022, USD176 million in February 2023 and USD300 million in April 2023. However, Moody's believes the company will scale down its land acquisitions and developments, as well as control expenses to preserve liquidity for debt servicing. Moody's expects Jiayuan's interest coverage, measured by EBIT/interest coverage, to decrease to 2.5x over the next 12-18 months from 2.8x for 2021, driven by slower revenue recognition and declining profit margins as the company will likely offer price discounts to accelerate sales. On the other hand, Moody's forecasts that the company's debt leverage, as measured by revenue/debt, will stay around 65%-70% over the same period, given the expected debt reduction. Jiayuan's B3 CFR continues to reflect the company's track record in its core markets in the Yangtze River Delta and its low-cost and quality land bank. These strengths are tempered by Jiayuan's developing operating scale and high exposure to the offshore debt market. Jiayuan's senior unsecured rating is one notch below its CFR because of legal and structural subordination risks. Most of the claims are at the operating subsidiaries, and in the event of a bankruptcy, they have priority over claims at the holding company. In addition, the holding company lacks significant mitigating factors for structural subordination. As a result, the expected recovery rate for claims at the holding company will be low. In terms of environmental, social and governance (ESG) factors, Moody's has considered the risks associated with the company's concentrated ownership, with Mr. Shum Tin Ching, holding a 74.7% stake in Jiayuan and pledging around 8.7% of the company's total outstanding shares for financing as of December 31, 2021. Moody's has also considered the company's listed status on the Hong Kong Stock Exchange and the application of the Hong Kong Listing Rules and Securities and Future Ordinance on the company. In addition, Mr. Shum has demonstrated his commitment to the company by injecting assets to strengthen its operations and equity base, and reducing his share pledge loan to lower the risk of debt repayment acceleration under the change of control clause in the company's bond indenture. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade of Jiayuan's ratings is unlikely over the next 12 months, given the negative outlook. However, Moody's could change the outlook to stable if Jiayuan improves its operating cash flow, liquidity and access to funding. On the other hand, Moody's could downgrade the ratings if Jiayuan's refinancing risks heighten, or its liquidity or access to funding deteriorates further. The principal methodology used in these ratings was Homebuilding And Property Development Industry published in January 2018. Jiayuan International Group Limited develops mass-market residential properties mainly in Jiangsu and Anhui provinces. The company had a total land bank of around 17.4 million square meters as of the end of December 2021. It also develops and operates commercial properties alongside its residential property projects. KAISA GROUP: Chair's Bel-Air Villa in HK Up for Sale at Discount ---------------------------------------------------------------- South China Morning Post reports that the Hong Kong villa of a Kaisa Group Holding executive has been offered for sale at a discount by receivers, joining a growing group of mainland Chinese developers who are selling their assets at distressed prices amid the debt crunch and stagnation in China's property market. House 17 of Bel-Air Rise in Pok Fu Lam, the third phase of the Residence Bel-Air luxury property project on the southwestern corner of Hong Kong Island, was put up for sale this week by a group of receivers, according to CBRE, the Post relays. The receivers include Cosimo Borrelli and Tai Shaw Hoong of New York-headquartered Kroll, the report discloses. The Post says the two-storey villa, spread over 3,953 square feet (367 square metres) is valued at between HK$260 million and HK$280 million, or a discount of up to 26 per cent compared with its HK$350 million (US$44.6 million) purchase price in 2017. About Kaisa Group Kaisa Group Holdings Ltd engages in real estate development in China, including urban redevelopment projects in the GBA. As of June 30, 2021, the company's land bank comprised an aggregate gross floor area of 31.1 million square meters of saleable resources across over 50 cities in China. As recently reported in the Troubled Company Reporter-Asia Pacific, Fitch Ratings has withdrawn Kaisa Group Holdings Limited's Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'RD' and senior unsecured rating of 'C' with a Recovery Rating of 'RR4'. Fitch is withdrawing the ratings as Kaisa 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 Kaisa. SUNAC CHINA: Misses Bond Repayment, Expects to Miss More -------------------------------------------------------- Reuters reports that Sunac China missed the deadline for coupon payments on a US$742 million offshore bond and said on May 12 it does not expect to make payments coming due on other bonds, adding to a wave of defaults in China's debt-laden property sector. A source close to the company, the nation's third-largest property developer by sales, said Sunac is considering a restructuring of its offshore debt to extend payments, Reuters relays. It is also talking to state-owned entities about strategic investments in the firm. According to the report, the company said in a filing to the Hong Kong stock exchange that it has hired Houlihan Lokey as a financial advisor and Sidley Austin as a legal adviser to explore solutions to ease current liquidity constraints. With US$7.7 billion in dollar bonds, Sunac is the fourth-largest issuer among Chinese developers, the report notes. Reuters says China's property sector has been hit by a series of defaults on offshore debt obligations, highlighted by China Evergrande Group and Kaisa Group, as well as bond exchanges, with Zhongliang Holdings the latest firm to extend payments. Adding to pressure on the sector are Covid-related lockdowns across the country that are weighing on sales, while a weakening yuan has made it more expensive for developers to meet payments on their offshore debt maturities, worth around US$20 billion for the rest of the year, the report states. More major developers could miss their upcoming obligations or may need to do bond exchanges, analysts and developers said. Online financial news site Cailianshe reported on May 12 that Shenzhen-based Logan Group is in talks to extend the maturities of its offshore debt, according to Reuters. The firm's Hong Kong-listed shares were suspended from trading pending inside information. In its May 12 filing, Sunac said: "The group's contracted sales have continued to decline significantly, while access to new financing has become increasingly difficult with more liquidity issues occurring among certain property developers." In a separate statement, Sunac said its aggregated sales in March and April fell 65 per cent from a year ago due to Covid-19 outbreaks in various cities, and its refinancing and asset disposal plans did not materialise after a series of rating downgrades earlier this year, Reuters reports. According to Reuters, the firm confirmed it missed the May 11 deadline for a US$29.5 million interest payment on the October 2023 bond that was required to be repaid last month, and it does not expect it will pay 3 other coupons due last month totalling US$75.3 million before the 30-day grace periods expire, or pay other senior notes when they become due. Reuters relates that Sunac said missing the October 2023 payment meant bondholders could seek the immediate repayment of the principal and interest but it had not received any "acceleration notices" from those holders. It apologised to its creditors in the filing and asked them to give it the time "to overcome challenges" while it makes efforts to enhance its credit profile, including accelerating sales, disposing of assets, seeking debt extension, and introducing strategic investors. Lucror Analytics moved Sunac to "Default" from "Very High Risk" after the missed payment, credit analyst Shu Hui Woon said in a note, adding that Sunac will need to successfully dispose of more assets to temporarily improve liquidity, Reuters says. Sunac's Hong Kong-listed shares have been suspended since April 1 pending the release of its 2021 financial statements. Its unit Sunac Services fell more than 11 per cent on May 12. About Sunac China Sunac China Holdings Limited (SEHK:1918) -- http://www.sunac.com.cn/-- is principally engaged in the sales of properties in the People's Republic of China. The Company operates its business through two segments: Property Development and Property Management and Others. The Company's subsidiaries include Sunac Real Estate Investment Holdings Ltd., Qiwei Real Estate Investment Holdings Ltd. and Yingzi Real Estate Investment Holdings Ltd. As reported in the Troubled Company Reporter-Asia Pacific on April 25, 2022, Fitch Ratings has withdrawn Sunac China Holdings Limited's Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'CC' and senior unsecured rating of 'CC' with a Recovery Rating of 'RR4'. Fitch is withdrawing the ratings as Sunac 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 Sunac. ZHONGLIANG HOLDINGS: Fitch Cuts Foreign Currency IDR to 'C' ----------------------------------------------------------- Fitch Ratings has downgraded China-based homebuilder Zhongliang Holdings Group Company Limited's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'C' from 'B-' and the senior unsecured rating on Zhongliang's outstanding US dollar senior notes to 'C' from 'B-', with the Recovery Rating remaining at 'RR4'. The downgrades follow Zhongliang's announcement that it has launched an exchange offer and consent solicitation (the transaction) to exchange USD290 million of bonds outstanding due on May 19, 2022 and USD440 million bonds outstanding due on July 9, 2022 for bonds due in April 2023 and December 2023. Fitch considers the effective extension of the bond maturity by nine to 19 months as a distressed debt exchange (DDE) as per Fitch's criteria, although there is an incentive fee offered and no reduction in principal and interest. If the proposed transaction is successfully completed, the IDR will be downgraded to 'RD' (Restricted Default). Fitch will then reassess Zhongliang's credit profile to determine an IDR consistent with the company's post-transaction capital structure and risk profile, which would likely be within a very low speculative-grade range. KEY RATING DRIVERS Transaction Constitutes a DDE: The exchange offer and consent solicitation, if successful, will constitute a DDE under Fitch's Rating Definitions. When considering whether the transaction should be classified as a DDE, Fitch expects both of the following to apply: the transaction imposes a material reduction in terms compared with the original contractual terms; and it is conducted to avoid bankruptcy, similar insolvency or intervention proceedings, or a traditional payment default. Transaction to Avoid Default: Fitch considers the transaction to be necessary for Zhongliang to avoid default given its limited liquidity. The current portion of interest-bearing bank and other borrowings, senior notes and asset-backed securities amounted to CNY19.5 billion at end-2021, compared with CNY20.3 billion of cash and cash equivalents for the same period. Fitch believes the majority of cash and cash equivalents is at the project level and may not be used to service the holding company's debt. Material Reduction in Terms: Fitch believes the transaction constitutes a material reduction in the terms of the existing notes as there is an effective extension of the bond maturity by nine to 19 months, although there is a cash consideration of USD10 for each principal amount of USD1,000 and no reduction in the principal and interest for the bonds. Conditions of Tender Offer: The company's obligation to consummate the offer is conditional upon the bondholders tendering not less than 90% of the aggregate principal of the outstanding notes. DERIVATION SUMMARY Zhongliang's ratings reflect Fitch's assessment that its exchange offer and consent solicitation amount to a DDE. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer: -- Attributable contracted sales of around CNY84 billion-87 billion a year in 2022-2024 (2021: CNY103 billion); -- Land bank life of around 2.5 years in 2022, falling to two years in 2023-2024 (2021: 2.8 years); -- Gross floor area acquired at 0.4x-0.5x of gross floor area sold in 2022-2024 (2021: 0.6x); -- Gross profit margin of 16%-17% in 2022-2024 (2021: 17%). Recovery Rating Assumptions Liquidation Approach -- 4x EBITDA multiple to derive Zhongliang's going-concern value; -- Fitch has assumed a 10% administrative claim in line with criteria. -- Application of liquidation value approach, as liquidation of the assets would result in a higher return to creditors; -- The liquidation estimate reflects Fitch's view of the value of balance-sheet assets that can be realised in sale or liquidation processes conducted during bankruptcy or insolvency proceedings and distributed to creditors. -- Advance rate of 80% is applied to accounts receivable. This treatment is in line with Fitch's recovery rating criteria. -- Advance rate of 15% is applied to the book value of investment properties. The investment-property portfolio mainly consists of malls in Tier 1-2 cities. The portfolio has an average rental yield of less than 1%, which is below the industry average. Fitch considers a 15% advance rate as appropriate as the implied rental yield on the liquidation value for the investment-property portfolio would improve to 4%-5%, which would be considered acceptable in a secondary market transaction. -- Advance rate of 50% is applied to property, plant and equipment, which mainly consists of hotels and buildings, the value of which is insignificant. -- Advance rate of 62% is applied to net property inventory. The inventory mainly consists of completed properties held for sales, properties under development (PUD) and deposits for land acquisitions. Different advance rates were applied to these different inventory categories to derive the blended advance rate for net inventory. -- 70% advance rate is applied to completed properties held for sale. Completed commodity housing units are closer to readily marketable inventory. The company's historical gross margin for development property is around 20%. Therefore, a higher advance rate of 70% (against the typical 50% mentioned in the criteria for inventory) was applied. -- 55% advance rate is applied to PUD. Unlike completed projects, PUD are more difficult to sell. These assets are also in various stages of completion. A 55% advance rate was applied because Zhongliang's PUD are mostly in Tier 3-4 cities. Zhongliang's land bank life is 2.5-3 years, so the book value should be reasonably close to the market value. The PUD balance - prior to applying the advance rate - is net of margin-adjusted customer deposits. -- 90% advance rate is applied to deposits for land acquisitions. Land held for development is closer to readily marketable inventory, in a similar way to completed commodity housing units, provided it is well located. Zhongliang's land generally is not located in significantly disadvantaged areas. Therefore, a higher advance rate than the typical 50% mentioned in the criteria was considered. -- Advance rate of 50% is applied to joint venture (JV) net assets. JV assets typically include a combination of completed units, PUD and land bank. A 50% advance rate was applied, in line with the baseline advance rate for inventories. -- Advance rate of 0% is applied to excess cash, after netting the amount of trade payables. The allocation of value in the liability waterfall results in recovery corresponding to a Recovery Rating of 'RR4' for the senior unsecured offshore bonds. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- Fitch will reassess Zhongliang's capital structure and cash flow after the completion of the transaction, or if the transaction is not completed, to determine its IDR and senior unsecured ratings. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Fitch will downgrade Zhongliang's IDR to 'RD' if the transaction is completed, or if it fails to meet any of its debt obligations. 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 Zhongliang is a large national property developer focused on the Yangtze River Delta region. It has diversified into other economic zones, including midwest China, Pan-Bohai, Western Taiwan Straits and Pearl River Delta. SUMMARY OF FINANCIAL ADJUSTMENTS Fitch excludes deposits in designated accounts from cash in Fitch's leverage calculation and include this as inventory. Restricted bank deposits are included in cash to calculate net debt, as these are mainly pledged for obtaining bank loans. 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. ========= I N D I A ========= AADYA MOTOR: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Aadya Motor Company India Private Limited (AMCPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 12 CRISIL D (Issuer Not Cooperating) Working Capital 20 CRISIL D (Issuer Not Facility Cooperating) CRISIL Ratings has been consistently following up with AMCPL for obtaining information through letters and emails dated February 8, 2022 and April 18, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward-looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of AMCPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AMCPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of AMCPL continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Incorporated in 2012, AMCPL, promoted by Mr. V Ramanand Rao, is the authorised dealer for Porsche, with its showroom in Mumbai. The company began operations in September 2012. The promoter also has interests in auto dealerships of other brands through group entities. AARVEE INTERNATIONAL: CRISIL Keeps D Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Aarvee International (AI) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 18 CRISIL D (Issuer Not Cooperating) Proposed Cash 2 CRISIL D (Issuer Not Credit Limit Cooperating) CRISIL Ratings has been consistently following up with AI for obtaining information through letters and emails dated February 8, 2022 and April 18, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward- looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of AI, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AI is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of AI continue to be 'CRISIL D Issuer Not Cooperating'. AI was established in 2012 by the Sorthaiya family based in Rajkot (Gujarat). The firm trades in agri-based commodities such as soyabean meal, rapeseed and groundnut extraction meal, and wheat. ARIHANT INFRA: CRISIL Keeps B Debt Rating in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the rating on bank facilities of Arihant Infrastructures continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 12.5 CRISIL B/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with Arihant for obtaining information through letters and emails dated February 8, 2022 and April 18, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of Arihant, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on Arihant is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of Arihant continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Arihant was set up as a partnership firm in 2009. It is a special-purpose vehicle formed by the Arihant group for undertaking a residential real estate project, Arihant Cavetto, at Gariahat Road, Kolkata (West Bengal). The firm is promoted by Mr. Mahendra Kumar Pandya and his associates. ASHOKA MANUFACTURING: CRISIL Keeps D Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Ashoka Manufacturing Limited (AML) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 3.5 CRISIL D (Issuer Not Cooperating) Cash Credit 5.85 CRISIL D (Issuer Not Cooperating) Letter of Credit 0.9 CRISIL D (Issuer Not Cooperating) Proposed Fund- 0.66 CRISIL D (Issuer Not Based Bank Limits Cooperating) Term Loan 1.24 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with AML for obtaining information through letters and emails dated February 8, 2022 and April 18, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of AML, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AML is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of AML continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Incorporated in 1997, AML manufactures and supplies spare parts used for defence arms and ammunition. The company is promoted by Kolkata-based Mr. Anil Patodia and family. ATC CHEMICALS: CRISIL Keeps B Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of ATC Chemicals India Private Limited (ATCIPL) continue to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4 CRISIL B/Stable (Issuer Not Cooperating) Long Term Loan 1.52 CRISIL B/Stable (Issuer Not Cooperating) Proposed Long Term 0.48 CRISIL B/Stable (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with ATCIPL for obtaining information through letters and emails dated February 8, 2022 and April 18, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of ATCIPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on ATCIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of ATCIPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Incorporated in 2004, ATCIPL manufactures leather chemicals. The manufacturing facility is based in Pondicherry. The managing director of the company is Mr. J B Gualino. BALAJI POLYSACKS: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Balaji Polysacks Private Limited (BPPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 3 CRISIL D (Issuer Not Cooperating) Cash Credit 10 CRISIL D (Issuer Not Cooperating) Letter of Credit 3 CRISIL D (Issuer Not Cooperating) Standby Letter 1 CRISIL D (Issuer Not of Credit Cooperating) Term Loan 0.95 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with BPPL for obtaining information through letters and emails dated February 28, 2022 and April 29, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of BPPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on BPPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of BPPL continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. BPPL, incorporated in 1995 by Mr. Sajjan Kumar Agarwal, Mr. Sushil Agarwal, and Mr. Naresh Kumar Agarwal, manufactures high-density polyethylene (HDPE) bags, used primarily in the fertilizer industry and in packaging grains. The company commenced commercial production in 2000 and has capacity of 5400 tonne per annum. Its operations are managed by Mr. Sushil Agarwal. BASE CORP: Liquidation Process Case Summary ------------------------------------------- Debtor: Base Corporation Limited Flat No. S2, 2nd Floor No. 13, Lohan's Regent Sundermurthy Road Cox Town, Bangalore 560005 India Liquidation Commencement Date: April 26, 2022 Court: National Company Law Tribunal, Bangalore Bench Date of closure of insolvency resolution process: September 4, 2020 Insolvency professional: Konduru Prasanth Raju Interim Resolution Professional: Konduru Prasanth Raju B-804, Shriram Suhaana Apartments Harohalli, Nagenahalli Gate Yelahanka, Bangalore Karnataka 560064 E-mail: ipkpraju@gmail.com - and - Raheja Chambers 12, Museum Road Bengaluru 560001 E-mail: basecliquidator@gmail.com Last date for submission of claims: May 26, 2022 C P ISPAT: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of C P Ispat Private Limited (CPIPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.2 CRISIL D (Issuer Not Cooperating) Cash Credit 12 CRISIL D (Issuer Not Cooperating) Term Loan 7.8 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with CPIPL for obtaining information through letters and emails dated February 28, 2022 and April 29, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of CPIPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on CPIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of CPIPL continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. CPIPL, incorporated in 2006, manufactures sponge iron. The company commenced commercial production in July 2009 at its facility in Durgapur, West Bengal. CPIPL was promoted by the Kolkata-based Chawla family and was earlier managed by Mr. Amarjeet Chawla. However, in September 2013, the Chawla family leased out the plant to the Durgapur-based Jayshree group owned by Mr. Amit Agarwal and his family. Since September 15, 2013, operations of the plant have been managed by the Jayshree group. In February 2014, the Jayshree group entered into an agreement with the Chawla family to purchase CPIPL with effect from April 2014. CANVASFLIP SOLUTIONS: Voluntary Liquidation Process Case Summary ---------------------------------------------------------------- Debtor: Canvasflip Solutions Private Limited 1/240, Virat Khan Gomti Nagar, Lucknow UP 226010 Liquidation Commencement Date: April 5, 2022 Court: National Company Law Tribunal, Kolkata Bench Insolvency professional: Kamal Nayan Jain Interim Resolution Professional: Kamal Nayan Jain 2/7 Sarat Bose Road Vasundhara Building, 1st Floor Kolkata 700020 E-mail: knjain@knjainco.com Last date for submission of claims: May 5, 2022 CLAYRIS CERAMICS: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Clayris Ceramics Private Limited (CCPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 2.5 CRISIL D (Issuer Not Cooperating) Bank Guarantee 1.5 CRISIL D (Issuer Not Cooperating) Cash Credit 10 CRISIL D (Issuer Not Cooperating) Letter of Credit 2 CRISIL D (Issuer Not Cooperating) Long Term Loan 28.36 CRISIL D (Issuer Not Cooperating) Proposed Long Term 0.36 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with CCPL for obtaining information through letters and emails dated February 28, 2022 and April 29, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of CCPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on CCPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of CCPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Set up in 2008 by Mr. Divyesh Patel and family, Morbi-based CCPL manufactures ceramic tiles. DONGWON TECH: Voluntary Liquidation Process Case Summary -------------------------------------------------------- Debtor: Dongwon Tech India Private Limited Office No. 401, 4th Floor Yashraj Towers, Milkat No. 2400 Pune Nagar Road, Koregaon Bhima Shirur, Pune Liquidation Commencement Date: August 14, 2021 Court: National Company Law Tribunal, Pune Bench Insolvency professional: Mr. Vivek Murlidhar Dabhade Interim Resolution Professional: Mr. Vivek Murlidhar Dabhade B-13, Trupti Garden Wadgaon BK, Pune 411051 E-mail: cavivekdabhade@gmail.com Tel: +919923093456 Last date for submission of claims: September 13, 2021 E C BOSE: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of E C Bose and Co Private Limited (ECBPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 1 CRISIL D (Issuer Not Cooperating) Cash Credit 5.5 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with ECBPL for obtaining information through letters and emails dated February 28, 2022 and April 29, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of ECBPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on ECBPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of ECBPL continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. ECBPL was incorporated in 1851, promoted by the late Mr. Eshan Chandra Bose, and is currently managed by his family. The company offers stevedoring and forwarding services, besides other allied services such as comprehensive shipping and logistical services, customs clearance, shipping, chartering and freight forwarding, and warehousing. ELEMENTIAL LABS: Voluntary Liquidation Process Case Summary ----------------------------------------------------------- Debtor: Elemential Labs Private Limited 101/102 Ashiyna, Plot No. 2316 11th Road, Santacruz East Mumbai Mumbai City MH 400055 IN Liquidation Commencement Date: April 27, 2022 Court: National Company Law Tribunal, Mumbai Bench Insolvency professional: Mr. Pranav Damania Interim Resolution Professional: Mr. Pranav Damania 407, Sanjar Enclave Above Mahindra Showroom Opposite Milap Cinema S.V. Road, Kandivali West Mumbai 400067 E-mail: pranav@winadvisors.co.in Mobile: +919820469825 Last date for submission of claims: Within 30 days from the Liquidation Commencement date GOUTHAMI HATCHERIES: CRISIL Keeps D Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Gouthami Hatcheries Private Limited (GHPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 16 CRISIL D (Issuer Not Cooperating) Long Term Loan 16.5 CRISIL D (Issuer Not Cooperating) Proposed Long Term 7.12 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with GHPL for obtaining information through letters and emails dated February 8, 2022 and April 29, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of GHPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GHPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of GHPL continues to be 'CRISIL D Issuer Not Cooperating'. GHPL, set up in 1999, produces hatching eggs and broiler birds. SFPL, set up in 2009, manufactures poultry feed. The companies are promoted by Mr. D Srinath Reddy and his wife, Ms. D Lokeshwari. GREATEASTERN UDYOG: CRISIL Lowers Rating on INR10cr Loan to B ------------------------------------------------------------- CRISIL Ratings has revised the ratings on bank facilities of Greateastern Udyog Private Limited (GEUPL; a part of the Eastern Food group) to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 10 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB+/Stable ISSUER NOT COOPERATING') Term Loan 8.2 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB+/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with GEUPL for obtaining information through letters and emails dated February 8, 2022 and April 29, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of GEUPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GEUPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of GEUPL Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'. For arriving at the rating, CRISIL Ratings has combined the business and financial risk profiles of Eastern Foods Pvt Ltd (EFPL) and GEUPL. That is because the two companies, together referred to as the Eastern Food group, are in the same line of business, and have significant operational linkages. EFPL was originally set up as a partnership in 1999 and was reconstituted as a private-limited company in 2006. The company undertakes production of refined wheat flour (maida), whole wheat flour (atta), semolina (suji), and bran in its wheat division; and raw and parboiled rice in the rice division. GEUPL, incorporated on December 11, 2015, is setting up a wheat processing unit in Tangi, Cuttack (Odisha) with installed capacity of 275 tonne per day. GREEN POWER: CRISIL Withdraws D Rating on INR105cr Loans -------------------------------------------------------- CRISIL Ratings has withdrawn its ratings on the bank facilities of Green Power Sugars Limited (GPSL) on the request of the company and receipt of a no objection certificate from its bank. The rating action is in line with CRISIL Ratings' policy on withdrawal of its ratings on bank loans. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 25 CRISIL D/Issuer Not Cooperating (Withdrawn) Term Loan 30 CRISIL D/Issuer Not Cooperating (Withdrawn) Term Loan 50 CRISIL D/Issuer Not Cooperating (Withdrawn) CRISIL Ratings has been consistently following up with GPSL for obtaining information through letters and emails dated January 22, 2022 and March 12, 2022, among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of GPSL. This restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GPSL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the rating on bank facilities of GPSL continue to be 'CRISIL D Issuer Not Cooperating'. GPSL, incorporated in 2006 and promoted by the Deshmukh family, has an integrated sugar plant, with crushing capacity of 3500 tonne per day, along with a distillery with capacity of 30 kilolitre per day and a 16.8-megawatt cogen power plant, at Gopuj in Satara, Maharashtra. GUJARAT EXPORT: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Gujarat Export Company (GEC) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Packing Credit 15 CRISIL D (Issuer Not Cooperating) Proposed Long Term 10 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with GEC for obtaining information through letters and emails dated February 28, 2022 and April 29, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of GEC, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GEC is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of GEC continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Incorporated in 1998, as a proprietorship firm by Kansagra family of Rajkot, GEC trades in soybean meal, rapeseed, groundnut extraction meal, oil seeds, wheat, and other agricultural products. JAYALAXMI MINERALS: CRISIL Lowers Rating on INR11cr Loans to B -------------------------------------------------------------- CRISIL Ratings has revised the ratings on bank facilities of Jayalaxmi Minerals & Resources Private Limited (JMRPL) to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Drop Line 4.5 CRISIL B/Stable (ISSUER NOT Overdraft Facility COOPERATING; Revised from 'CRISIL BB/Stable ISSUER NOT COOPERATING') Proposed Long Term 6.5 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Revised from 'CRISIL BB/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with JMRPL for obtaining information through letters and emails dated February 28, 2022 and April 29, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of JMRPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on JMRPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of JMRPL Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB/Stable Issuer Not Cooperating'. Incorporated in 2013 by Mr. Phaneendra Thammimeedi and Mrs Katuri Uma Padmini, JMRPL is engaged in trading of non-coking coal. The company is based out of Hyderabad, Telangana. CEE was established as a proprietary concern of Ms Uma Padmini Katuri in 2011. Later on in year May 2018 entity has been changed to limited liability partnership firm with name Coastal Minerals Impex LLP (CMIL). The firm is based in Hyderabad and trades in coal, mainly non-coking. Operation are managed by Mr. Phaneendra. LAXMI NARASIMHA: CRISIL Keeps B Debt Rating in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Sri Laxmi Narasimha Homes Private Limited (SLNHPL) continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Term Loan 10 CRISIL B/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SLNHPL for obtaining information through letters and emails dated February 28, 2022 and April 29, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of SLNHPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SLNHPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SLNHPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Established in 2015, SLNHPL is engaged in real estate development. The company is currently undertaking one residential project in Vijayawada. The company is promoted by Mr. P. Narasimha Raju, who has been in the industry for more than 2 decades. MATESHWARI PAPER: CRISIL Moves B+ Ratings to Not Cooperating ------------------------------------------------------------ CRISIL Ratings has migrated the rating on bank facilities of Mateshwari Paper Mill Private Limited (MPMPL) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2.45 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Term Loan 4.80 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with MPMPL for obtaining information through letters and emails dated March 29, 2022 and April 27, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of MPMPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MPMPL is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of MPMPL to 'CRISIL B+/Stable Issuer not cooperating'. MPMPL incorporated in December, 2012 is engaged in manufacturing of kraft paper and the company now proposes to set up a 100 TPD waste paper based duplex paper board manufacturing facility. The duplex board unit is expected to commence commercial operations from December 2016 onwards. MOHTA PLYWOOD: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Mohta Plywood Industries Private Limited (MPIPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bill Discounting 13 CRISIL D (Issuer Not Cooperating) Cash Credit 0.5 CRISIL D (Issuer Not Cooperating) Letter of Credit 4 CRISIL D (Issuer Not Cooperating) Packing Credit 6 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with MPIPL for obtaining information through letters and emails dated February 28, 2022 and April 29, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of MPIPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MPIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of MPIPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Incorporated in 1981 and promoted by Mr. Pawandeep Sachdeva and family, MPIPL is engaged in manufacturing and exports of the ready-made garments. Company is also engaged in manufacturing and trading of plywood. OVERSEAS TRADERS: CRISIL Moves D Debt Ratings to Not Cooperating ---------------------------------------------------------------- CRISIL Ratings has migrated the rating on bank facilities of Overseas Traders (OT) to 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 2 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) Export Packing 12 CRISIL D (ISSUER NOT Credit & Export COOPERATING; Rating Migrated) Bills Negotiation/ Foreign Bill discounting Proposed Long Term 1 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with OT for obtaining information through letters and emails dated March 29, 2022 and April 27, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of OT, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on OT is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of OT to 'CRISIL D/CRISIL D Issuer not cooperating'. OT, set in 1977 in Mumbai, trades beedi leaves, tobacco, spices, onion and potatoes. OT is owned & managed by Mr. Sunil Katharani, Mr. Anil Katharani, Mr. Amit Katharani and Mr. Amar Katharani. POPSHOP COMMERCE: Voluntary Liquidation Process Case Summary ------------------------------------------------------------ Debtor: Popshop Commerce Private Limited 06-105-A, 06-102, (138 WU) Vaishnavi Signature No. 78/9, Outer Ring Road Bellandur, Varthur Hobli Bengaluru Bangalore KA 560103 Liquidation Commencement Date: April 25, 2022 Court: National Company Law Tribunal, New Delhi Bench Insolvency professional: Gunjan Mittal Interim Resolution Professional: Gunjan Mittal A-25A, LGF Lajpat Nagar-II New Delhi 110024 Tel: 011-45552681 Mobile: 9868476717 E-mail: ip.gunjanmittal@gmail.com popshopliquidator@gmail.com Last date for submission of claims: May 25, 2022 PRACHIN FOUNDATION: CRISIL Keeps D Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Prachin Foundation (Prachin) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 7.09 CRISIL D (Issuer Not Cooperating) Proposed Long Term 2.91 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with Prachin for obtaining information through letters and emails dated February 28, 2022 and April 29, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of Prachin, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on Prachin is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of Prachin continues to be 'CRISIL D Issuer Not Cooperating'. Prachin, based in Hyderabad (Telangana), was established by Mr. G Satyanarayana in June 2009. The society has a franchisee agreement with GIFL, Singapore, to manage the Global Indian International School. The school offers education from pre-school to high school level. Its operations are managed by Mr. A Venkateswara Rao. PREMINEN PRICE: Voluntary Liquidation Process Case Summary ---------------------------------------------------------- Debtor: Preminen Price Comparison India Private Limited F-2902, Ireo Grand Arch Arch, Sector 58 Gurgaon, Haryana 122011 Liquidation Commencement Date: March 26, 2022 Court: National Company Law Tribunal, New Delhi Bench Insolvency professional: Mr. Naveen Narang Interim Resolution Professional: Mr. Naveen Narang H-3/63, First Floor Vikaspuri, New Delhi 110018 E-mail: nnarang.associates@gmail.com Tel: +9198180225476 +911145113039 Last date for submission of claims: April 25, 2022 RCG GLOBAL: Voluntary Liquidation Process Case Summary ------------------------------------------------------ Debtor: RCG Global Consulting (India) Private Limited #503, Lavender Arge Silver Bloom Survey #11 Industrial Suburb 2nd Stage, Yeshwantpur Bangalore KA 560022 India Liquidation Commencement Date: April 29, 2022 Court: National Company Law Tribunal, Cochin Bench Insolvency professional: Mr. Raju Palanilkunnathil Kesavan Interim Resolution Professional: Mr. Raju Palanilkunnathil Kesavan CGNRA-9 (33/1183A), Kodamessary Lane Chalikkavattom, Vennala P.O. Kochi 682028 E-mail: rajupkin@gmail.com Tel: 9349198960 Last date for submission of claims: May 30, 2022 SHIV SAI METAL: Insolvency Resolution Process Case Summary ---------------------------------------------------------- Debtor: Shiv Sai Metal Products Private Limited M/s Shiv Sai Metal PVt Ltd Maner, Patna Bihar 801108 Insolvency Commencement Date: April 27, 2022 Court: National Company Law Tribunal, Kolkata Bench Estimated date of closure of insolvency resolution process: October 24, 2022 Insolvency professional: Aditya Kumar Tibrewal Interim Resolution Professional: Aditya Kumar Tibrewal 7C, Kiran Shankar Roy Road Hasting Chamber, Basement Kolkata 700001 E-mail: adityatibre@gmail.com cirp.ssm@gmail.com Last date for submission of claims: May 11, 2022 SHRIRAM SEPL: Liquidation Process Case Summary ---------------------------------------------- Debtor: Shriram SEPL Composites Private Limited 31-A/12, SIDCO Industrial Estate North Phase, Ambattur Chennai 600098 Liquidation Commencement Date: May 2, 2022 Court: National Company Law Tribunal, Chennai Bench Date of closure of insolvency resolution process: March 27, 2022 Insolvency professional: Ajay S Jain Interim Resolution Professional: Ajay S Jain Flat-10G, Bhavya Block Sri Mahalakshmi Utsav Apartments No. 339, Konnur High Road Ayanavaram, Chennai 600023 E-mail: sseplcirp@gmail.com - and - #6/2, 4th Floor Wellington Crescent Pycrofts Garden Road Nungambakkam, Chennai 600006 Last date for submission of claims: June 1, 2022 SUBHASHRI BIO-ENERGIES: Liquidation Process Case Summary -------------------------------------------------------- Debtor: Subhashri Bio-Energies Private Limited Registered office: SenguttaiKadu, Munjanur Post Tirchengodu Taluk Nakkal District 637403 Tamil Nadu, India Factory: 67, Goundampalayam Kumaramangalam P.O. Tiruchengode 637205 Namakkal District Tamil Nadu, India Liquidation Commencement Date: May 2, 2022 Court: National Company Law Tribunal, Coimbatore Bench Date of closure of insolvency resolution process: March 1, 2022 Insolvency professional: Mr. P. Eswaramoorthy Interim Resolution Professional: Mr. P. Eswaramoorthy No. 44, 5th Street Ramalingajothi Nagar Near Corporation office Nanjundapuram Road Ramanathapuram Coimbatore 641045 Tamil Nadu, India E-mail: eswarfcs@gmail.com Tel: 0422-2322333, 3500466 Last date for submission of claims: May 31, 2022 SUPER WOODWELL: Voluntary Liquidation Process Case Summary ---------------------------------------------------------- Debtor: Super Woodwell Private Limited Khasara No. 87/12/2 Mundka Industrial Area Gali No. 9 Near Saraswati Vatika Delhi 110041 Liquidation Commencement Date: April 25, 2022 Court: National Company Law Tribunal, New Delhi Bench Insolvency professional: Saurabh Agrawal Interim Resolution Professional: Saurabh Agrawal 403, Nirmal Tower 26 Barakhamba Road Connaught Place New Delhi 110001 E-mail: saurabhfcs@gmail.com Tel: +919811365004 011-40366403 Last date for submission of claims: May 25, 2022 VISHNUSHIVA INFRA: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Vishnushiva Infrastructures (VI) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Letter Of Guarantee 0.75 CRISIL D (Issuer Not Cooperating) Proposed Long Term 2.25 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with VI for obtaining information through letters and emails dated February 28, 2022 and April 29, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of VI, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on VI is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of VI continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. VI, incorporated in March 2008, is a partnership firm, promoted by Mr. B S Rana and family members and engaged in mining of coal. WAYNE-BURT AEROSPACE: Liquidation Process Case Summary ------------------------------------------------------ Debtor: Wayne-Burt Aerospace Private Limited No. 6A, Developed Plot Ekkaduthangal Chennai 600032 Liquidation Commencement Date: April 28, 2022 Court: National Company Law Tribunal, Chennai Bench Date of closure of insolvency resolution process: December 8, 2021 Insolvency professional: A. Mohan Kumar Interim Resolution Professional: A. Mohan Kumar Flat F1, Sudarsan Apartments 72, VGP Selva Nagar Second Main Road Velachery, Chennai 600042 E-mail: needamohan@gmail.com Mobile: 9003012871 Last date for submission of claims: May 28, 2022 =============== M O N G O L I A =============== CAPITRON BANK: Moody's Alters Outlook on B3 Deposit Ratings to Neg. ------------------------------------------------------------------- Moody's Investors Service has affirmed Capitron Bank LLC's B3 local- and foreign-currency long-term deposit ratings. Moody's has also affirmed all of the bank's other ratings and assessments. At the same time, Moody's has changed the outlook on Capitron Bank's deposit and issuer ratings to negative from stable, to reflect the uncertainty over the bank's capital-raising plan to maintain a sufficient capital buffer, without which Moody's expects the bank's capitalization to weaken against its very strong asset growth. RATINGS RATIONALE The change in outlook to negative from stable reflects possible pressure on the bank's capitalization if its capital injection plan is not executed as intended. While Moody's expects the bank's internal capital generation to improve, it will require capital injection to maintain a sufficient capital buffer, considering its aggressive loan growth planned for 2022-23 and its volatile asset performance because of its small scale, exposure to cyclical sectors and concentrated borrower base. At the same time, Mongolian banking law requires a single related party's ownership of the bank to be reduced to below 20% by December 2023, which will limit the bank's capacity to raise additional capital from its existing shareholders, given its concentrated ownership structure. Moody's regards the expected pressure on Capitron Bank's capitalization as a governance risk under the rating agency's environmental, social and governance (ESG) framework, given the implications for the bank's financial strategy and organizational structure. The affirmation of Capitron Bank's long-term ratings and Baseline Credit Assessment (BCA) reflects the bank's modest capitalization; its modest funding structure that relies heavily on its concentrated depositor base; its weak asset quality with high concentration in the cyclical mining and construction sectors; and its good liquidity, with liquid banking assets accounting for 40.5% of its tangible banking assets as of the end of 2021. Capitron Bank's modest funding structure reflects its weaker-than-peers' deposit franchise and heavy reliance on its top 20 depositors and related parties, which leave the bank's funding vulnerable to any credit event of major depositors. The bank is nevertheless making efforts to expand and diversify its depositor base. Moody's expects weak but largely stable asset quality and improving profitability for Capitron Bank over the next 12-18 months, supported by a continued recovery in domestic economic activities and a stabilization of the country's mining sector as Mongolia reopens its border with China, which will offset the impact of widening inflation amid heightened geopolitical risks. Moody's also expects an increase in Capitron Bank's net interest margin, driven by the Bank of Mongolia's policy rate hikes to 9% from 6% over the first three months of 2022. In addition, the bank's higher loan-loss coverage at the end of 2021 compared with the levels in 2019-20 provides a better buffer against a rise in credit costs. Moody's has not incorporated affiliate support for Capitron Bank. Therefore, the bank's Adjusted BCA is in line with its BCA of b3. No government support uplift is reflected in Capitron Bank's long-term ratings because Moody's assumes a low level of government support for the bank, given its limited importance to the Mongolian banking system with a market share of around 3.1% as of the end of 2021. Furthermore, the bank's Adjusted BCA is already at the same level as the Mongolian government's issuer rating of B3. Mongolia does not have an operational bank resolution regime. Moody's therefore applies a basic Loss Given Failure (LGF) approach in rating Mongolian banks. Capitron Bank's long-term Counterparty Risk Rating (CRR) of B2/B3 and long-term Counterparty Risk (CR) Assessment of B2(cr) incorporate the bank's b3 Adjusted BCA and Moody's basic LGF analysis, which positions the preliminary CRRs and CR Assessment one notch above the bank's Adjusted BCA. Moody's then adds the same uplift of government support as applied to the bank's long-term issuer rating, subject to country ceiling by currency. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade of Capitron Bank's ratings is unlikely, given the negative outlook. Moody's could revise the outlook back to stable if the bank strengthens its capitalization by successfully securing timely capital injections and meets the requirements of the Mongolian banking law, and lowers its depositor concentration to a level comparable to other domestic commercial banks. Moody's could downgrade the bank's ratings if its BCA is downgraded or the sovereign rating is downgraded, or both. The bank's BCA could be downgraded if the bank fails to receive new capital injection and does not maintain its capitalization at the current level; its deposit concentration worsens; its problem loans rise significantly; or there are signs of asset quality deterioration in its mining and construction loan book without a strengthening of its capitalization. A significant deterioration in the bank's liquidity could also result in a downgrade of the bank's BCA. The principal methodology used in these ratings was Banks Methodology published in July 2021. Capitron Bank LLC is headquartered in Ulaanbaatar, Mongolia, and reported total assets of MNT1.29 trillion (USD449 million) at the end of 2021. LIST OF AFFECTED RATINGS Baseline Credit Assessment (BCA), Affirmed b3 Adjusted BCA, Affirmed b3 Long-term Counterparty Risk Assessment, Affirmed B2(cr) Short-term Counterparty Risk Assessment, Affirmed NP(cr) Local currency long-term Counterparty Risk Rating, Affirmed B2 Foreign currency long-term Counterparty Risk Rating, Affirmed B3 Local currency and foreign currency short-term Counterparty Risk Ratings, Affirmed NP Local currency and foreign currency long-term deposit ratings, Affirmed B3, Outlook changed to negative from stable Local currency and foreign currency short-term deposit ratings, Affirmed NP Local currency and foreign currency long-term issuer ratings, Affirmed B3, Outlook changed to negative from stable Local currency and foreign currency short-term issuer ratings, Affirmed NP Outlook, Changed to negative from stable ===================== N E W Z E A L A N D ===================== BRANDS AUSTRALASIA: Creditors' Proofs of Debt Due on June 13 ------------------------------------------------------------ Creditors of Brands Australasia Limited 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 May 11, 2022. The company's liquidator is: Heath Gair Palliser Insolvency PO Box 57124 Mana, Porirua 5247 ORANGE SERVICE: Court to Hear Wind-Up Petition on May 20 -------------------------------------------------------- A petition to wind up the operations of Orange Service Centre Limited will be heard before the High Court at Auckland on May 20, 2022, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition against the company on Sept. 1, 2021. The Petitioner's solicitor is: Cloete Van Der Merwe Inland Revenue, Legal Services 5 Osterley Way Manukau City, Auckland 2104 VERSO ARCHITECTURE: Creditors' Proofs of Debt Due on June 12 ------------------------------------------------------------ Creditors of Verso Architecture + Interiors Limited are required to file their proofs of debt by June 12, 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: Greg Sherriff Adam Botterill Waterstone Insolvency PO Box 352, Auckland 1140 YOT LIMITED: Court to Hear Wind-Up Petition on May 20 ----------------------------------------------------- A petition to wind up the operations of YOT Limited will be heard before the High Court at Auckland on May 20, 2022, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition against the company on Aug. 13, 2021. The Petitioner's solicitor is: Cloete Van Der Merwe Inland Revenue, Legal Services 5 Osterley Way Manukau City, Auckland 2104 ================= S I N G A P O R E ================= AURUME VENTURES: Court Enters Wind-Up Order ------------------------------------------- The High Court of Singapore entered an order on May 6, 2022, to wind up the operations of Aurume Ventures Pte. Ltd. Allied Moving Services (S) Pte Ltd filed the petition against the company. The company's liquidators are: Thio Khiaw Ping Kelvin Chan Li Shan Agile 8 Solutions Pte. Ltd. 133 Cecil Street #14-01 Keck Seng Tower Singapore 069535 KITCHEN CULTURE: No Further Action From Police on SGD10,000 Drawn ----------------------------------------------------------------- The Business Times reports that the Commercial Affairs Department (CAD) has said there is insufficient evidence to prove that a criminal offence was committed in relation to 4 cash cheques totalling SGD10,000 that were withdrawn from Kitchen Culture's bank account. This comes after the CAD's review into the matter raised in a police report lodged by the company last December, the report says. BT relates that CAD will therefore be taking no further action on the matter, Kitchen Culture said in a bourse filing on May 11 night. According to the report, the Catalist-listed firm's financial controller had made the police report so as to obtain a police order that would be submitted to the bank, to facilitate the retrieval of the 4 cash cheques that were withdrawn in 2020. BT says the matter arose from 2 employees informing the company that they were not the recorded recipients of the cash cheques, Kitchen Culture said in a filing last month. Back in July 2021, the company also lodged a report with the CAD, in relation to "suspected payroll irregularities" amounting to about SGD520,000. About Kitchen Culture Based in Singapore, Kitchen Culture Holdings Ltd. -- https://www.khlmktg.com/ -- sells and distributes imported kitchen systems, kitchen appliances, wardrobe systems, and household furniture and accessories under the Kitchen Culture brand name. It operates through Residential Projects, and Distribution and Retail segments. Kitchen Culture reported three consecutive net losses of SGD3.87 million, SGD4.77 million and SGD11.51 million for years ended June 30, 2019, 2020, and 2021, respectively. MICROSOFT SINGAPORE: Creditors' Proofs of Debt Due on June 11 ------------------------------------------------------------- Creditors of Microsoft Singapore Holdings Pte Ltd are required to file their proofs of debt by June 11, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 4, 2022. The company's liquidators are: Mr. Aaron Loh Cheng Lee Ms. Ee Meng Yen Angela EY Corporate Advisors Pte Ltd c/o One Raffles Quay North Tower 18th Floor Singapore 048583 NGNG PTE: Court to Hear Wind-Up Petition on May 20 -------------------------------------------------- A petition to wind up the operations of Ngng Pte. Ltd will be heard before the High Court of Singapore on May 20, 2022, at 10:00 a.m. Teunis Eigenraam filed the petition against the company on April 26, 2022. The Petitioner's solicitors are: Pereira & Tan LLC 141 Middle Road #04-02/03, GSM Building Singapore 188976 PUMA ENERGY: Moody's Affirms 'B1' CFR, Outlook Remains Stable ------------------------------------------------------------- Moody's Investors Service has affirmed Puma Energy Holdings Pte. Ltd's (Puma, the company) B1 corporate family rating and its B1-PD probability of default rating as well as the B1 rating of the backed senior unsecured notes issued by Puma International Financing S.A. and guaranteed by Puma due in 2024 and 2026. The outlook on all ratings remains stable. RATINGS RATIONALE The rating and outlook affirmation reflects Puma's improved capital structure as a result of debt reduction in 2021 as the company applied cash proceeds from last year's $500 million rights issue and the disposal of some operations - mainly the Angolan business - resulting in net disposal proceeds of $527 million in 2021. These transactions enabled Puma to reduce its Moody's adjusted debt to $3,147 million at the end of 2021 from $3,905 million in 2020. However, the rating action also reflects the company's materially reduced EBITDA generation in 2021. Puma's Moody's adjusted EBITDA fell to $472 million in 2021 from $624 million in 2020. The rating agency previously expected $600 million - $620 million of Moody's adjusted EBITDA for 2021. Moody's recognises that around half of the difference between actual EBITDA generation and previously forecasted EBITDA is driven by the classification of Puma's infrastructure assets as discontinued operations. However, the remaining difference between the previously expected EBITDA generation and Puma's actual results in 2021 was driven by weaker than expected operating performance predominately owing to lower Bitumen volumes. However, it is worth noting that Puma benefitted in 2020 from $82 million of support from Trafigura Group Pte. Ltd. as it received purchasing discounts. Adjusting for this, Puma's underlying EBITDA slightly improved in 2021 compared with 2020. Nevertheless, Puma's Moody's adjusted debt / EBITDA metric stood at 6.7x at the end of 2021, significantly above Moody's previous expectation of around 5x. Adjusted for the earnings of the discontinued operations, Moody's adjusted debt / EBITDA would have stood at around 5.7x, still above Moody's guidance for the current rating. The affirmation of the B1 rating with stable outlook also recognizes that 2022 will be another transformative year for Puma. On March 14, 2022, the company announced that it has agreed to sell a significant part of its infrastructure and storage business to Impala Terminals Group (not rated). Puma will remain an important customer of the infrastructure and storage business. The transaction is subject to commercial and regulatory approvals and Puma expects completion in the coming months. While details of the financial considerations have not been published yet, Moody's anticipates that the vast majority of the anticipated disposal proceeds of $1.3 billion will be applied to debt reduction. The rating agency also understands that the additional lease liabilities under IFRS16 deriving from the associated take or pay contracts with Impala Terminals Group will be more than offset by the reduction of financial debt. Accordingly, Moody's considers the transaction as credit positive for Puma as it should lead to lower Moody's adjusted debt / EBITDA. For 2022-23, Moody's expects the company's Moody's adjusted EBITDA to increase to approximately $510 million - $540 million driven by further post-Covid volumes recovery especially in the aviation market, higher earnings in the Bitumen business, and reduced fixed costs. The infrastructure and storage business transaction is also expected to contribute to growing Moody's adjusted EBITDA as the lease payments for storage capacity (which is included in Moody's EBITDA) should be higher than the loss of EBITDA contribution from the to be disposed assets. However, Moody's also projects continued low cash flow generation with free cash flow improving but remaining negative in 2022-23 in Moody's base case projections as lease payments and high capital expenditures impact cash flow generation. Nevertheless, the rating agency forecasts Puma's Moody's adjusted EBITDA to improve to close to 5x in 2022 and below 5x in 2023 thereby meeting Moody's requirement for the B1 rating. Moody's continues to highlight the significant exposure of Puma to emerging markets, although the company provides products that are considered a necessity. While Puma's operations in many countries are subject to fully or semi-regulated pricing regimes, the company is not fully immune to macroeconomic shocks as seen during the Covid pandemic. LIQUIDITY Puma's liquidity is adequate. At the end of 2021, Puma had access to approximately $474 million of cash and cash equivalents, of which $89 million were restricted. Puma has recently renewed and upsized its committed bank credit lines. The new facilities amount to $695 million of which $232.5 million have a 2 year tenor and $462.5 million are committed for 1 year. Moody's continues to give limited credit in its liquidity assessment for the 1 year commitments. The committed bank credit lines were undrawn at the end of 2021 but Moody's understands that the facility is frequently used during the year. Moody's recognises that the debt reduction in 2021 increased Puma's headroom under the total debt to total asset and net leverage financial covenants. In addition, a successful completion of the disposal of the infrastructure and storage business would enhance Puma's liquidity position. OUTLOOK The stable outlook reflects Moody's expectation that Puma's operating profitability will recover in 2022-23 as the volumes of fuel sold continue to return to the levels seen before the coronavirus pandemic. The stable outlook also assumes that the sale of the infrastructure and storage business to Impala Terminals Group concludes in H2 2022. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings may be downgraded should Puma fail to (i) achieve a recovery in operating profitability of its core downstream business; (ii) continue to reduce financial debt with the application of proceeds from the disposal of the infrastructure and storage business so that Moody's-adjusted total debt to EBITDA increases above 5x in the next 12 -18 months; or (iii) maintain adequate liquidity. A rating upgrade would require: (i) some material strengthening in the group's business profile underpinning a sustained improvement in operating profitability; (ii) substantial permanent deleveraging ensuring that Moody's-adjusted total debt to EBITDA keeps sustainably below 4x; and (iii) positive free cash flow generation. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Retail published in November 2021. COMPANY PROFILE Puma is an integrated midstream and downstream oil products group active in Africa, Latin America, North East Europe, the Middle East and Asia-Pacific. Trafigura Beheer B.V., a global commodity and logistics firm, established Puma in 1997 as a storage and distribution network in Central America, and the company has since grown into a global network operating across 38 countries worldwide, with approximately 6.7 million cubic metres of storage capacity and a network of approximately 2,000 retail service stations across Africa, Latin America, Asia and Australia. In 2021, Puma sold 17.8 million cubic metres of oil products. The announced disposal of the majority of the company's infrastructure and storage assets will transform Puma into a downstream-focussed retailer and wholesaler of oil product. SUPERNOVA ENTERPRISES: Creditors' Proofs of Debt Due on June 11 --------------------------------------------------------------- Creditors of Supernova Enterprises Pte Ltd and Quant Impex Pte Ltd are required to file their proofs of debt by June 11, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 4, 2022. The company's liquidators are: Lau Chin Huat Yeo Boon Keong c/o Technic Inter-Asia Pte Ltd 50 Havelock Road #02-767 Singapore 160050 ================= S R I L A N K A ================= SRI LANKA: Central Bank Chief Threatens to Quit Amid Tumult ----------------------------------------------------------- Bloomberg News reports that Sri Lanka's central bank chief imposed more capital controls and threatened to resign if politicians fail to return stability to the nation in the grip of its worst economic crisis since independence. "I took on this responsibility with expectations that political stability will be established," Bloomberg quotes Governor Nandalal Weerasinghe as saying at a briefing in Colombo on May 11. "It's been more than a month with no progress. I do not wish to continue in this post if political stability is not achieved." Bloomberg relates that the call followed days of political violence, with clashes between pro- and anti-government groups pushing the prime minister to resign and dissolving his cabinet. A government is essential to agree a loan from the International Monetary Fund or win crucial bridge loans from countries willing to bail out Sri Lanka. According to the report, the IMF in a statement overnight expressed concerns about the violence, adding that it continues "technical level" discussions in order to be ready for policy talks once a new Sri Lankan government is formed. If Weerasinghe steps down, there's a risk even the technical talks may slow. Apart from the IMF and debt-restructuring talks, Sri Lanka needs a finance minister to take essential steps including raising taxes and energy prices, Weerasinghe said. If revenues fail to grow, the central bank will have to print more money, he warned, Bloomberg relays. Bloomberg notes that the Central Bank of Sri Lanka has raised interest rates by 850 basis points this year alone to fight inflation that has accelerated to a record almost 30% in April. Boosting money supply would only worsen price pressures and accelerate outflows in a nation facing a dire shortage of dollars. To curb black market transactions, the monetary authority plans to issue guidance to banks on movement of the exchange rate, including a daily trading band for the rupee-dollar trade, Weerasinghe said. Operating instructions was issued on May 12. "Seems like an administrative peg which will keep getting revised on a daily basis," Bloomberg quotes Saurav Anand, economist for South Asia at Standard Chartered Plc, as saying. "So unlike the earlier regime where value was fixed at 203; this time it would be revised on a daily basis." Bloomberg notes that Weerasinghe's briefing comes amid ongoing drama in the South Asian nation, whose prime minister resigned as public anger over mismanagement of the economy boiled over into political violence. The ancestral home of the ruling Rajapaksa family in the southern district of Hambantota was set on fire, and at least eight people have been killed. Sri Lanka's forex reserves have fallen 4.7% in April to $1.8 billion compared with a total debt due this year of as much as $7 billion. The government has already halted payments on foreign debt pending talks for restructuring loans, Bloomberg discloses. The country will need around $4 billion over the next eight months to pay for imports of essentials, Bloomberg notes. Sri Lanka's worst financial crisis since independence in 1948 was caused by a drastic drop in its reserves that dropped 70% over the past two years, hitting $1.93 billion at the end of March. This left Colombo struggling to pay for essentials, including fuel, medicines and food, according to Reuters. As recently reported in the Troubled Company Reporter-Asia Pacific, S&P Global Ratings, in April 2022, lowered its long-term and short-term foreign currency sovereign ratings on Sri Lanka to 'SD/SD' from 'CC/C'. At the same time, S&P affirmed its 'CCC-' long-term and 'C' short-term local currency sovereign ratings. The outlook on the local currency ratings remains negative. S&P's transfer and convertibility assessment at 'CC' is unchanged. S&P's foreign currency rating on Sri Lanka is 'SD' (selective default). It does not assign outlooks to 'SD' ratings because they express a condition and not a forward-looking opinion of default probability. The negative outlook on the local currency ratings reflects the high risk to commercial debt repayment in the context of Sri Lanka's economic, external, and fiscal pressures. ********* 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 ***