/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/220526.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, May 26, 2022, Vol. 25, No. 99 Headlines A U S T R A L I A A AND QIU: First Creditors' Meeting Set for June 1 ALLEGIANCE MINING: European Lithium Makes AUD125M Offer for Avery AVIS LOGISTIC: First Creditors' Meeting Set for June 1 KONG HWA: First Creditors' Meeting Set for June 1 LPGAV PTY: First Creditors' Meeting Set for June 1 RENDERSPEC PTY: Second Creditors' Meeting Set for June 1 TRITON BOND 2022-2: S&P Assigns B (sf) Rating to Class F Notes C H I N A HNA GROUP: Must Pay SL Green $185MM Over Manhattan Skyscraper I N D I A ARDHENDU MONDAL: ICRA Keeps D Debt Ratings in Not Cooperating B.V.L. EXPORTS: ICRA Keeps D Rating in Not Cooperating Category CHOTTA SHIMLA: ICRA Keeps D Ratings in Not Cooperating Category COCHIN BRIDGE: ICRA Keeps D Debt Rating in Not Cooperating COFFEE DAY: ICRA Keeps D Debt Rating in Not Cooperating Category DOLLY EXIM: ICRA Reaffirms B Rating on INR18cr Fund Based Loans EAST HYDERABAD: ICRA Keeps D Debt Rating in Not Cooperating GOPAL AUTO STORES: ICRA Keeps B+ Debt Ratings in Not Cooperating GOPAL AUTO: ICRA Keeps B+ Debt Ratings in Not Cooperating HIRAMAN DEVELOPERS: ICRA Keeps D Debt Rating in Not Cooperating JMT AUTO: ICRA Keeps D Debt Ratings in Not Cooperating Category KALYA CONSTRUCTIONS: ICRA Keeps B Debt Rating in Not Cooperating MATHIYAN CONSTRUCTION: ICRA Keeps C+ Rating in Not Cooperating NABADIGANT EDUCATIONAL: ICRA Keeps B+ Ratings in Not Cooperating SATHYANARAYANA AGRO: ICRA Cuts Rating on INR9cr Cash Loan to B+ SHIMLA TOLLS: ICRA Keeps C Ratings in Not Cooperating Category SHOWTIME ENTERTAINMENT: ICRA Keeps B+ Rating in Not Cooperating SHRIVARDHMAN MILK: ICRA Keeps B+ Debt Ratings in Not Cooperating SOWPARNIKA PROJECTS: ICRA Keeps B+ Ratings in Not Cooperating SRAVAN FTWZ: ICRA Keeps B+ Debt Rating in Not Cooperating SVS CONSTRUCTIONS: ICRA Keeps B Debt Rating in Not Cooperating TIGHTWELL FASTNERS: ICRA Keeps B+ Ratings in Not Cooperating VARUN LOGISTICS: ICRA Keeps B+ Debt Ratings in Not Cooperating VENKATA SAI: ICRA Keeps B+ Debt Rating in Not Cooperating M A L A Y S I A EA TECHNIQUE: Court Gives Six-Month Restraining Order Extension N E W Z E A L A N D ARMSTRONG DOWNES: Creditor Seeks to Replace Liquidators BT LORNE: Creditors' Proofs of Debt Due on June 21 HAWKE'S BAY: Still Owes NZD1.7 Million, Liquidator Finds JONES CONTRACTORS: Court to Hear Wind-Up Petition on June 16 KUROW-DUNTROON IRRIGATION: Placed in Receivership MA PETITE: Creditors' Proofs of Debt Due on July 5 MEADD (2018): Court to Hear Wind-Up Petition on June 2 ROLL RIGHT: Court to Hear Wind-Up Petition on June 2 P A P U A N E W G U I N E A PAPUA NEW GUINEA: S&P Alters Outlook to Stable, Affirms B-/B SCRs S I N G A P O R E CLEARIO HOLDINGS: Court to Hear Wind-Up Petition on June 3 FULLHOUSE HOME: Court to Hear Wind-Up Petition on June 3 RFT PTE: Court to Hear Wind-Up Petition on June 3 SEA SOLUTIONS: Court Enters Wind-Up Order - - - - - ================= A U S T R A L I A ================= A AND QIU: First Creditors' Meeting Set for June 1 -------------------------------------------------- A first meeting of the creditors in the proceedings of A and Qiu Pty Ltd (As Trustee For 'A and Qiu Family Trust') and Qiu Pty Ltd will be held on June 1, 2022, at 10:00 a.m. and 10:30 a.m., respectively, at the offices of SV Partners, Level 17, 200 Queen Street, in Melbourne, Victoria. Peter Gountzos and Timothy James Brace of SV Partners were appointed as administrators of A and Qiu and Qiu Pty on May 20, 2022. ALLEGIANCE MINING: European Lithium Makes AUD125M Offer for Avery ----------------------------------------------------------------- miningweekly.com reports that ASX-listed European Lithium has thrown a potential A$125-million spanner in fellow listed Mallee Resources' plans to acquire the Avebury nickel sulphide project, in Tasmania. According to the report, Mallee earlier this year unveiled a deed of company arrangement (DOCA) to acquire Allegiance Mining, which has gone into receivership. Allegiance owns the Avebury mining licence, exploration licence, the underground mine, processing plant, mine infrastructure and other associated assets. Under the DOCA, Mallee has offered to acquire Allegiance for A$85.9-million in a combination of cash and shares, and will also reimburse an estimated A$23.2-million in expenditure incurred in the development of the Avebury project during the DOCA term, the report says. miningweekly.com relates that Mallee MD John Lamb has said that Avebury would be a transformative opportunity for the company, as it stood among the best nickel sulphide projects in Australia in terms of scale and grade. Earlier this month, Mallee announced that completion of the DOCA was subject to shareholder approval, and the Supreme Court of Western Australia granting the deed administrators of Allegiance leave to transfer the issued capital in the company to Mallee. The report relates that the deed administrators have also made applications to the court for the transfer of the issued capital in Allegiance from Dundas Mining, which is also in liquidation, to Mallee on the effectuation of the DOCA. However, Mallee pointed out that a shareholder of Dundas has objected to the application on the basis that it would unfairly prejudice Dundas. The application will be heard in court in early June. European Lithium has now made proposals to the liquidators of Dundas, seeking to change the fate of the Avebury project. According to miningweekly.com, the company has put forward a A$125-million cash offer. However, the offer will be subject to a number of hurdles, including the conclusion of negotiations before the June court hearing. European Lithium noted that if Allegiance was successful in its court bid, European Lithium would be unable to advance its proposal, the report says. Avebury is currently estimated to host a mineral resource of 29.3-million tonnes, grading 0.9% nickel and 229 parts per million cobalt. The project has been on care and maintenance since 2008, owing to the onset of the global financial crisis and the subsequent fall in nickel prices. The project was acquired by MMG from Oz Minerals in 2009, and subsequently sold to Dundas Mining in 2016. Dundas appointed receivers and administrators in late 2021 in relation to Dundas Mining and its related parties, which included Allegiance. AVIS LOGISTIC: First Creditors' Meeting Set for June 1 ------------------------------------------------------ A first meeting of the creditors in the proceedings of Avis Logistic Pty Ltd will be held on June 1, 2022, at 3:00 p.m. via teleconference. Mohammad Najjar of Chifley Advisor was appointed as administrator of Avis Logistic on May 20, 2022. KONG HWA: First Creditors' Meeting Set for June 1 ------------------------------------------------- A first meeting of the creditors in the proceedings of Kong Hwa Laundry Pty Ltd will be held on June 1, 2022, at 11:00 a.m. at the offices of SV Partners, Level 17, 200 Queen Street, in Melbourne, Victoria. Peter Gountzos and Timothy James Brace of SV Partners were appointed as administrators of Kong Hwa on May 20, 2022. LPGAV PTY: First Creditors' Meeting Set for June 1 -------------------------------------------------- A first meeting of the creditors in the proceedings of LPGAV Pty Ltd (As Trustee For 'LPGAV Family Trust') will be held on June 1, 2022, at 11:30 a.m. at the offices of SV Partners, Level 17, 200 Queen Street, in Melbourne, Victoria. Peter Gountzos and Timothy James Brace of SV Partners were appointed as administrators of LPGAV Pty on May 23, 2022. RENDERSPEC PTY: Second Creditors' Meeting Set for June 1 -------------------------------------------------------- A second meeting of creditors in the proceedings of Renderspec Pty Ltd has been set for June 1, 2022, at 2:00 p.m. via Zoom videoconferencing facility. 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 31, 2022, at 4:00 p.m. Domenic Calabretta and Grahame Ward of Mackay Goodwin were appointed as administrators of Renderspec Pty on April 14, 2022. TRITON BOND 2022-2: S&P Assigns B (sf) Rating to Class F Notes -------------------------------------------------------------- S&P Global Ratings assigned its ratings to seven classes of prime residential mortgage-backed securities (RMBS) issued by Perpetual Corporate Trust Ltd. as trustee for Triton Bond Trust 2022-2 Series 1. The ratings reflect: -- S&P's view of the credit risk of the underlying collateral portfolio, including the fact that this is a closed portfolio, which means no further loans will be assigned to the trust after the closing date. -- S&P's view that the credit support is sufficient to withstand the stresses it applies. This credit support comprises mortgage lenders insurance covering 4.85% of the loans in the portfolio, as well as note subordination for all rated notes. -- S&P's expectation that the various mechanisms to support liquidity within the transaction, including an amortizing liquidity facility equal to 1.0% of the invested amount of all notes, subject to a floor of 0.10% of the initial invested amount of all notes, principal draws, and a loss reserve that builds from excess spread, are sufficient under our stress assumptions to ensure timely payment of interest. -- The extraordinary expense reserve of A$150,000, funded from day one by Columbus Capital Pty Ltd., available to meet extraordinary expenses. The reserve will be topped up via excess spread if drawn. -- The benefit of a fixed- to floating-rate interest-rate swap provided by Westpac Banking Corp. to hedge the mismatch between receipts from any fixed-rate mortgage loans and the variable-rate RMBS, should any be entered into after transaction close. Ratings Assigned Triton Bond Trust 2022-2 Series 1 Class A1, A$990.00 million: AAA (sf) Class A2, A$67.98 million: AAA (sf) Class B, A$14.30 million: AA (sf) Class C, A$11.55 million: A (sf) Class D, A$6.49 million: BBB (sf) Class E, A$4.95 million: BB (sf) Class F, A$1.43 million: B (sf) Class G, A$3.30 million: Not rated. ========= C H I N A ========= HNA GROUP: Must Pay SL Green $185MM Over Manhattan Skyscraper ------------------------------------------------------------- The Wall Street Journal reports that Chinese conglomerate HNA Group Co. must pay its former business partner SL Green Realty Corp. about $185 million in a dispute over a bankrupt Manhattan skyscraper, an arbitrator said. The Journal said the arbitrator, former judge L. Priscilla Hall, found that real-estate investment trust SL Green was entitled to a $184.6 million payment over an investment that it made in HNA Group's 245 Park Ave., according to documents made public in a New York state court on May 20. SL Green should also be reimbursed for $856,000 in fees, she said. According to the report, SL Green began arbitration proceedings in December, seeking to enforce deal terms that it said entitled it to more than $180 million in compensation. A lawyer for SL Green, Mark Ressler, asked the New York State Supreme Court on May 20 to confirm the arbitration award, a routine move after an arbitration finding, the Journal relates. The skyscraper's owner-PWM Property Management LLC, a New York-based affiliate of HNA-filed for chapter 11 protection from creditors in the U.S. Bankruptcy Court in Wilmington, Del., last fall, the Journal relays. In addition to the Manhattan building, PWM owns another skyscraper in Chicago. When it filed for bankruptcy, PWM partly blamed office employees working from home during the Covid-19 pandemic. PWM also said SL Green, its property manager, hadn't replaced anchor tenant Major League Baseball despite having years to prepare for the departure, showing "substandard" performance. The arbitrator said HNA had failed to prove its allegation about MLB. Early in its bankruptcy, PWM said that its plans included ending its relationship with publicly traded SL Green, the Journal says. PWM has since rejected its leasing and property-management agreement with SL Green and has retained a new manager, despite the latter's objections. Besides managing the building, SL Green also invested $148 million in the property, a transaction that SL Green said was made at HNA's request, the report relays. To protect its investment, SL Green negotiated for certain rights in its contracts. Those rights included getting back its $148 million, plus other payments, if certain events occurred, such as a bankruptcy. According to the Journal, SL Green said one reason the skyscraper was placed in bankruptcy was to prevent the property manager from exercising its rights to force a sale of the building. SL Green said that its consent was required, but not sought, for 245 Park to file for bankruptcy. Bankruptcy Judge Mary Walrath ruled in December that PWM could remain under court protection, deciding against SL Green, which had argued the chapter 11 case was filed in bad faith, recalls the Journal. The judge said PWM had legitimate reasons to fear a forced sale. The arbitrator, Ms. Hall, said SL Green met its burden to show that a "cause event" - a bankruptcy - has occurred. HNA has said the bankruptcy should have put a stop to SL Green's efforts to recover its investment. Bankruptcy often pauses, or stays, litigation against a business. Ms. Hall said the fact that a bankruptcy court "may" extend a stay doesn't mean that it must do so. HNA didn't show that the bankruptcy court had issued a stay order, she said. She also noted that HNA made its arguments in arbitration, instead of the bankruptcy court that could extend the stay to the arbitration proceeding with SL Green. HNA, which wasn't part of PWM's chapter 11 proceedings in Delaware, was placed in bankruptcy administration in China last year. The company had grown rapidly by acquiring assets around the world before being undone by a large debt load. About HNA Group China-based HNA Group Co. Ltd. offers airlines services. The Company provides domestic and international aviation transportation, air travel, aviation maintenance, and aviation logistics services. HNA Group also operates holding, capital, tourism, logistics, and other business. As reported in the Troubled Company Reporter-Asia Pacific, HNA Group on Jan. 29, 2021 declared bankruptcy and restructuring after a multi-year debt and liquidity crisis. The company was informed by South China's Hainan High People's Court on Jan. 29 that "because the company is unable to pay off its debts, related creditors appealed to the court for the company's bankruptcy and restructuring," HNA said. According to Global Times, HNA Group said it will cooperate with the court for judicial review, carry forward the debt disposal, and support the court's protection of the legal rights of its creditors so as to ensure the smooth operations of the company. On March 15, 2021, a court in Hainan approved the merger and restructuring of 320 affiliates of HNA Group into the parent company, paving way for the conglomerate to eventually emerge from bankruptcy, Caixin Global said. HNA Group was designated as administrator of the merger, according to a statement issued March 15 by the Hainan High People's Court. The 320 units will be integrated into HNA group's bankruptcy reorganization, and the group will submit a restructuring plan to the creditor meeting for approval, the court said. ========= I N D I A ========= ARDHENDU MONDAL: ICRA Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of M/s. Ardhendu Mondal in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]D/[ICRA]D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based– 5.50 [ICRA]D ISSUER NOT COOPERATING; Cash Credit Rating continues to remain under 'Issuer Not Cooperating' Category Unallocated 2.48 [ICRA]D ISSUER NOT COOPERATING; Limit COOPERATING; Rating continues to remain under the 'Issuer Not Cooperating' category Non-Fund based– 2.02 [ICRA]D ISSUER NOT COOPERATING; Bank Guarantee COOPERATING; Rating continues to remain under the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Incorporated in 2004 as a partnership firm, M/s. Ardhendu Mondal is involved primarily in the business of civil construction in West Bengal. The registered office of the firm is in Burdwan, West Bengal. The activities of the firm include earth work, river bank protection, bridge construction and maintenance work, road and building construction work etc. B.V.L. EXPORTS: ICRA Keeps D Rating in Not Cooperating Category --------------------------------------------------------------- ICRA has retained the long-term rating of B.V.L. Exports Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 125.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. B.V.L. Exports Private Limited was incorporated in 2000 and is engaged in the trading of tobacco. The company continued to operate as a tobacco exporter till 2004 when it transferred its entire tobacco export business to Indian Tobacco Traders. The company then ventured into granite mining by buying granite quarry in Ongole District of Andhra Pradesh. The company mines black galaxy variety of granite. From December 2014, the company has restarted trading of tobacco. Mr. Bellam Jayanth Babu is the Managing Director of BVL and has more than 20 years of experience in tobacco industry. CHOTTA SHIMLA: ICRA Keeps D Ratings in Not Cooperating Category --------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Chotta Shimla Projects Pvt. Ltd. (CSPPL) in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]D ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 15.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based/TL Rating Continues to remain under 'Issuer Not Cooperating' Category Long-term– 2.14 [ICRA]D; ISSUER NOT COOPERATING; Fund based/CC Rating Continues to remain under 'Issuer Not Cooperating' Category Long Term- 0.75 [ICRA]D ISSUER NOT COOPERATING; Non Fund Based Rating continues to remain under 'Issuer Not Cooperating' Category As part of its process and in accordance with its rating agreement with CSPPL, ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with the aforesaid policy of ICRA, a rating view has been taken on the entity based on the best available information. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Incorporated in 2010, CSPPL is a special purpose vehicle (SPV) promoted by Mr. Parmod Sood, and Mr. Kawaljeet Singh Duggal formed for implementing a multilevel vehicle parking cum commercial development project in the Chotta Shimla, Secretariat area of Shimla (Himachal Pradesh) on design, building, operation and transfer (DBOT) basis. The project involves construction of an 8-storey building, in which the bottom three floors will be designed for the commercial property, whereas the top five floors will be used as parking facility, canteens and other services. The project involved a total cost of INR20.04 crore, which was funded by INR15 crore from term loan and the remaining INR5.04 crore from promoters. The project has a concession period of 30 years, including the construction period. COCHIN BRIDGE: ICRA Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------- ICRA has retained the Long-Term ratings of Cochin Bridge Infrastructure Company Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D: ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based- 9.11 [ICRA]D; ISSUER NOT COOPERATING; Cash Credit Rating Continues to remain under 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. CBICL is a Special Purpose Vehicle (SPV) incorporated in October 1999 to construct and operate a new bridge over the Matancherry channel on BOT basis in Kochi connecting Fort Kochi and Mattancherry with Willingdon Island. CBICL is a 97.66% subsidiary of Gammon Infrastructure Projects Limited (GIPL, the infrastructure holding company of the Gammon group), with the balance held by Cochin Port Trust. Construction of the bridge was completed ten months ahead of schedule. The company has no operational cash flows as the toll collection was suspended from April 2014. COFFEE DAY: ICRA Keeps D Debt Rating in Not Cooperating Category ---------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Coffee Day Enterprises Limited in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 315.00 [ICRA]D; ISSUER NOT COOPERATING; Rating continues to remain under the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Coffee Day Enterprises Limited is the holding company for Coffee Day group, promoted by Mr. V G Siddhartha. The key companies of the group are – Coffee Day Global Limited (coffee business), Sical Logistics Limited (integrated logistics), Tanglin Development Limited (real estate), Way2Wealth (financial services) and Coffee Day Hotels and Resorts Limited (Hospitality). DOLLY EXIM: ICRA Reaffirms B Rating on INR18cr Fund Based Loans --------------------------------------------------------------- ICRA has reaffirmed ratings on certain bank facilities of Dolly Exim Private Limited (DEPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based– Overdraft 8.20 [ICRA]B(Stable); reaffirmed Fund-based– Term Loan 9.80 [ICRA]B(Stable); reaffirmed Rationale The reaffirmation of the rating assigned to DEPL factors in the continued pressure on the company's scale of operations in FY2022, due to the pandemic's adverse impact on the business. The company's operating income is estimated at INR11.20 crore in FY2022, in line with INR8.51 crore in FY2021, considerably lower than historical levels of ~ INR35-40 crore in the recent years. Moreover, the rating remains constrained by DEPL's weak financial profile marked by a leveraged capital structure with high reliance on debt and low net worth, translating into weak coverage indicators. The company's continued weak profitability led by the low value-additive nature of the trading business, where the margin flexibility is limited due to the stiff competition also constrain the rating. Further, the company's financial flexibility is constrained by significant loans and advances extended to third parties and suppliers, which result in high reliance on creditor funding and external working capital borrowings. Nevertheless, the interest income on such loans and advances provides continued support to the profitability. Further, ICRA notes the qualification in the audit report mentioning overstatement of profits in FY2021 due to non-provisioning for doubtful long-term loans and advances for INR6.35 crore and non-provisioning of erosion in the value of investment in shares of a listed company. While the company's management has indicated that a settlement has been reached and the amount is likely to be recovered soon, any delays in retrieving these loans or diminution in the value of investments could further strain the company's financial risk profile. ICRA also notes the high geographical and customer concentration risks, which is likely to moderate DEPL's growth potential. The rating, however, favourably factors in the extensive experience of DEPL's promoters spanning over two decades in the textile trading business. The Stable outlook on the [ICRA]B rating reflects ICRA's opinion that the company will continue to benefit from the extensive experience of its promoters in the industry, along with established relationships with its customers. Key rating drivers and their description Credit strengths * Extensive experience of promoters: DEPL is promoted by Mr. Vinod Deora, the promoter of the KDJ Group, with extensive experience in the textile business, which helps the company garner repeat business from its customers. Credit challenges * Weak financial risk profile as reflected by low profitability indicators, leveraged capital structure and weak debt coverage Indicators: In line with the recent years, DEPL reported an operating loss of INR0.60 crore in FY2021, which is estimated to continue in FY2022 as well. Its capital structure remained stretched, indicated by a high gearing level and weak debt protection metrics owing to higher dependency on external debt. * Sizeable loans and advances extended to third parties restrict financial flexibility: The company's financial flexibility is constrained due to the large quantum of loans and advances extended to third parties and advances to various suppliers (which aggregated to ~Rs. 25.47 crore as on March 31, 2021). These advances have no fixed repayment schedule and any delays in retrieving the loans/interest on it, or any further increase in the loan amount outstanding could stretch DEPL's liquidity profile and cash flows. Nonetheless, the interest income on such loans and advances provides support to its profitability. * Limited pricing flexibility due to high competition in business: The company faces stiff competition from other unorganized and organised players, which limits its pricing flexibility and bargaining power with customers, thereby putting pressure on its revenues and margins. Further, the low value-additive nature of the trading business restricts its profit margins. * High geographical and customer concentration risks: As the company has a small scale of operations, it only caters to wholesalers and garment manufacturers from Maharashtra and Gujarat, resulting in high geographical concentration risk, which is likely to impact DEPL's growth potential. Moreover, four to five customers have accounted for almost the entire sales in the recent years, thereby exposing the company to customer concentration risk. * Qualification in audit report mentioning overstatement of profits in FY2021 due to non-provisioning of possible losses: The auditor has made a qualification against the company in the FY2021 audit report regarding non-provisioning of long-term loans and advances of INR6.35 crore considered doubtful of recovery. Additionally, there is a qualification of non-provisioning for possible loss owing to erosion in the value of investment (amount not ascertainable) in the shares of a listed company. Due to this, the non-current investments are higher (amount not ascertainable) and profit for the year is higher by INR6.35 crore with consequential effect on reserves, surplus, long-term loans and advances. Liquidity position: Poor DEPL's liquidity is poor, marked by modest internal accrual generation, minimal free cash balances and almost fully utilised working capital bank lines. Moreover, the annual debt repayment is ~Rs. 1.2 crore p.a. over the medium term, which is relatively high compared to the anticipated generation of cash accruals. Rating sensitivities Positive factor – ICRA could upgrade DEPL's rating if there is a sustained growth in its operating income, along with improved profitability and if the company recovers the doubtful long-term loans and advances, which strengthens the coverage ratios, liquidity position and net worth. Negative factor – Pressure on DEPL's rating could arise if the revenue declines further, coupled with provisioning of doubtful long-term loans and advances and investment write-offs, thereby eroding the net worth and straining the liquidity position. DEPL, incorporated in 1978 by Mr. Vinod Deora, is primarily involved in the trade of grey yarn and fabric for suiting and shirting. DEPL primarily operates in Maharashtra and Gujarat and enjoys established relationships with most of its customers and suppliers. Apart from fabric trading, it extends loans and advances to suppliers and third parties [interest received from loans and advances contributes to around 5-7% of the company's total revenues (operating and non-operating)]. EAST HYDERABAD: ICRA Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------- ICRA has retained the Long-Term ratings of East Hyderabad Expressway Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D: ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based– 119.49 [ICRA]D ISSUER NOT COOPERATING; Term Loan Rating continues to remain under 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. East Hyderabad Expressway Limited (EHEL) is a Special Purpose Vehicle (SPV) incorporated in July 2007 for undertaking the design, construction, development, finance, and Operation and Maintenance (O&M) of an 8-lane access-controlled expressway. The project is spread over 13 km, as part of Phase-2A of the Hyderabad Outer Ring Road (ORR) project on a BOT (annuity) basis. The project is owned by the Hyderabad Metropolitan Development Authority (HMDA, a Government of Telangana undertaking). ITNL holds 74% of EHEL's equity, while the balance is held by KMC Construction Limited (10%) and KMC Infratech Limited (16%). GOPAL AUTO STORES: ICRA Keeps B+ Debt Ratings in Not Cooperating ---------------------------------------------------------------- ICRA has retained the long-term rating of Sri Gopal Auto Stores in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]B+(Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 5.50 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category Long Term- 0.38 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Term Loan to remain under 'Issuer Not Cooperating' category Long Term- 1.12 [ICRA]B+(Stable); ISSUER NOT Unallocated COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Sri Gopal Auto Stores (SGAS) was incorporated in 2011 as a partnership firm in Kadapa, Andhra Pradesh. The partners of the firm are Mr D. Julius and Mr D. Gopal. SGAS operates a 3S facility and is the sole authorized dealer of HMCL in Kadapa district. Other group companies include Sri Gopal Automobiles (SGAM) and Sri Gopal Auto Centre (SGAC). The promoters have been involved in the business for more than two decades. SGAM operates a 3S facility and it is the sole authorized dealer of HMCL in Tirupati, Andhra Pradesh. SGAC is the sole authorised dealer of HMCL in Chittoor, Andhra Pradesh. GOPAL AUTO: ICRA Keeps B+ Debt Ratings in Not Cooperating --------------------------------------------------------- ICRA has retained the long-term rating of Sri Gopal Auto Centre in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]B+(Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 6.50 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category Long Term- 0.11 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Term Loan to remain under 'Issuer Not Cooperating' category Long Term- 1.39 [ICRA]B+ (Stable) ISSUER NOT Unallocated COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Sri Gopal Auto Centre (SGAC), a proprietorship firm was constituted in 1993 in Chittoor, Andhra Pradesh. The firm is managed by Mr D. Pundarikakshaiah and it has a 3S facility located in Palamaneru Road in Chittoor. SGAC is the sole authorized dealer of HMCL in Chittoor. Other group companies include Sri Gopal Automobiles (SGAM) and Sri Gopal Auto Stores (SGAS). The promoters have been involved in the business for more than two decades. SGAM operates a 3S facility and it is the sole Authorised dealer of HMCL in Tirupati, Andhra Pradesh. SGAS is the sole Authorised dealer of HMCL in Kadapa, Andhra Pradesh. HIRAMAN DEVELOPERS: ICRA Keeps D Debt Rating in Not Cooperating --------------------------------------------------------------- ICRA has retained the Long-Term ratings of Hiraman Developers Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D: ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 7.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Term Loan 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Hiraman Developers Private Limited (HDPL) was incorporated in January 2008 as Mewar Future Developers Pvt. Ltd. and its name was subsequently changed to the current name in May 2011. The key promoter of HDPL is Mr. Hira Lal Jain who has been in Real Estate Business since 1982 dealing in Sale & Purchase of Land and has also executed various commercial and residential complexes in Mumbai, Navi Mumbai and Udaipur. JMT AUTO: ICRA Keeps D Debt Ratings in Not Cooperating Category --------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of JMT Auto Limited's in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]D/[ICRA]D ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 87.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Long-term– 39.57 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Term Loan 'Issuer Not Cooperating' Category Short Term 1.00 [ICRA]D ISSUER NOT COOPERATING; Fund-based Rating continues to remain under Limits the 'Issuer Not Cooperating' Category Short Term 35.00 [ICRA]D ISSUER NOT COOPERATING; Non Fund-based Rating continues to remain under Limits the 'Issuer Not Cooperating' Category Long Term 4.27 [ICRA]D ISSUER NOT COOPERATING; Unallocated Rating continues to remain under Limits the 'Issuer Not Cooperating' Category Long Term/ 3.16 [ICRA]D/[ICRA]D ISSUER NOT Short Term- COOPERATING; Rating Unallocated continues to remain under the 'Issuer Not Cooperating' Category As part of its process and in accordance with its rating agreement with JMT, ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with the aforesaid policy of ICRA, a rating view has been taken on the entity based on the best available information. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. JMT Auto Limited (JMT) is a 66.77% subsidiary of Amtek Auto Ltd. (AAL) and manufactures machined components for automobile, tractor and farm equipment, oil and natural gas and construction equipment sectors. The company was incorporated in 1987 as Jamshedpur Metal Treat Private Ltd. and operated as a dedicated ancillary to the erstwhile Tata Engineering and Locomotive Company Ltd. (Telco), supplying various machined components. The company's shares were listed in 1994 and are traded on both the Bombay Stock Exchange and the National Stock Exchange. Over the years, JMT has enhanced its manufacturing capabilities by backward integrating into forging and casting components. JMT has eight production units, located in Jamshedpur, Dharwad and Lucknow. KALYA CONSTRUCTIONS: ICRA Keeps B Debt Rating in Not Cooperating ---------------------------------------------------------------- ICRA has retained the Long-Term ratings of Kalya Constructions Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B(Stable): ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based- 6.00 [ICRA]B(Stable); ISSUER NOT Cash credit COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Kalya Constructions Private Limited (KCPL) was incorporated in 2009 as a private limited company under Mr. Ram Kalya and family. Mr. Ram Kalya has been acting as the managing director of the company along with Mr. Om Prakash Kalya. The company acts as a civil contractor for government, non-government and private entities. KCPL primarily does mining, earthwork and pipeline work for the entities. The company has also started trading activity of construction raw materials. MATHIYAN CONSTRUCTION: ICRA Keeps C+ Rating in Not Cooperating -------------------------------------------------------------- ICRA has retained the Long-Term and short-term ratings of Mathiyan Construction Pvt. Ltd. in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]C+/[ICRA]A4: ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 10.00 [ICRA]C+ ISSUER NOT COOPERATING; Fund Based Rating continues to remain under Cash Credit 'Issuer Not Cooperating' Category Short term 35.00 [ICRA]A4; ISSUER NOT Non fund based COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Based at Muzaffarnagar in Uttar Pradesh, Mathiyan Constructions Private Limited (MCPL) was incorporated in 2007 by Mr. Rajeev Kumar and his brother, Mr. Subhash Chand. The promoters have a decade-long experience in the construction sector. The company undertakes work related to road construction and maintenance mainly for the Public Works Department (PWD) and Pradhan Mantri Gram Sadak Yojana (PMGSY). In FY2017, the company reported a net profit of INR1.83 crore on an operating income of INR54.31 crore, as compared to a net profit of INR1.24 crore on an operating income of INR40.81 crore in the previous year. In 10M FY2018 (provisional financials), the company reported a net profit of INR2.25 crore on an operating income of INR40.88 crore. NABADIGANT EDUCATIONAL: ICRA Keeps B+ Ratings in Not Cooperating ---------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Nabadigant Educational Trust in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]B+(Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based- 15.00 [ICRA]B+ (Stable) ISSUER NOT Limit- COOPERATING; Rating continues Term Loan to remain under 'Issuer Not Cooperating' category Fund based- 4.95 [ICRA]B+ (Stable) ISSUER NOT Corporate COOPERATING; Rating continues Mortgage to remain under 'Issuer Not Cooperating' category Fund based- 0.05 [ICRA]B+(Stable); ISSUER NOT Unallocated COOPERATING; Rating continues to remain under the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. NDET is a charitable trust, established in 1997, with an aim to impart higher education in India. The trust manages five colleges, located at Bhubaneswar, Odisha, offering courses across various streams like engineering, information technology, management and media under the brand name "Koustuv Group of Institutions". SATHYANARAYANA AGRO: ICRA Cuts Rating on INR9cr Cash Loan to B+ --------------------------------------------------------------- ICRA has revised the ratings on certain bank facilities of Sathyanarayana Agro Industries (SAI), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 9.00 [ICRA]B+(Stable); ISSUER NOT Fund-based– COOPERATING; Rating downgraded Cash Credit from [ICRA]BB-(Stable) and rating moved to 'Issuer Not Cooperating' category Rationale The rating downgrade is because of lack of adequate information regarding SAI performance and hence the uncertainty around its credit risk. ICRA assesses whether the information available about the entity is commensurate with its rating and reviews the same as per its "Policy in respect of non-cooperation by a rated entity" available at www.icra.in. The lenders, investors and othermarket participants are thus advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity, despite the downgrade. As part of its process and in accordance with its rating agreement with Sathyanarayana Agro Industries (SAI), ICRA has been trying to seek information from the entity so asto monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with the aforesaid policy of ICRA, a rating view has been taken on the entity based on the best available information. Established in 2014 by Mr. R. Narayana and family, SAI is a partnership firm, involved in the milling of paddy and produces raw and boiled rice. The firm's major products include boiled rice, raw rice, bran, broken rice and husk. It commenced operations in April 2014 in the Raichur district of Karnataka with a capacity to process 8 MT of paddy per hour. However, the promoters have been involved in a similar business for more than two decades. SAI reported an operating income (OI) of INR63.7 crore and net profit of INR0.9 crore in FY2021 against an OI of INR55.0 crore and a net profit of INR0.5 crore in FY2020. SHIMLA TOLLS: ICRA Keeps C Ratings in Not Cooperating Category -------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Shimla Tolls and Projects Pvt. Ltd. in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]C ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 5.15 [ICRA]C ISSUER NOT COOPERATING; Fund Based/CC Rating continues to remain under 'Issuer Not Cooperating' Category Long Term- 32.00 [ICRA]C ISSUER NOT COOPERATING; Fund Based/TL Rating continues to remain under 'Issuer Not Cooperating' Category Long Term- 1.50 [ICRA]C ISSUER NOT COOPERATING; Non Fund Based Rating continues to remain under 'Issuer Not Cooperating' Category As part of its process and in accordance with its rating agreement with Shimla Tolls and Projects Pvt. Ltd., ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with the aforesaid policy of ICRA, a rating view has been taken on the entity based on the best available information. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Shimla Tolls & Projects Pvt. Ltd. (STPPL) is a special purpose vehicle (SPV) promoted by Shri Parmod Sood (44.16%), Shri Kawaljeet Singh Duggal (49.16%), M/s P. K. Construction Shimla Pvt. Ltd. (6.67%) and M/s A.N.S. Constructions Ltd. (0.01%) to develop the parking complex at lift area in Shimla with a parking capacity of 700 car spaces through public private partnership (PPP) on design, build, operate and transfer (DBOT) basis. The project was awarded by Himachal Pradesh Infrastructure Development Board (HPIDB), for a concession period of 30 years. The concession agreement between the Shimla Municipal Corporation (Authority) and STPPL (Concessionaire) was signed on February 26, 2011. SHOWTIME ENTERTAINMENT: ICRA Keeps B+ Rating in Not Cooperating --------------------------------------------------------------- ICRA has retained the Long-Term ratings of Showtime Entertainment Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B+(Stable): ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 8.00 [ICRA]B+(Stable); ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Unallocated 2.00 [ICRA]B+(Stable); ISSUER NOT Limits COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. SEPL is into the business of leasing multiplexes. The company was incorporated in 2001 and introduced the first cineplex in Jaipur city by the name of 'Space Cinema'. The multiplex was operated directly by the management until 2007-08, post which the property was leased out to Inox Cinemas. In FY2010, the promoters purchased another multiplex theatre situated at Pink Square, Jaipur, which was also leased out to Inox Cinemas. As on date, the company's revenue stream consists of rental income from both these properties. SHRIVARDHMAN MILK: ICRA Keeps B+ Debt Ratings in Not Cooperating ---------------------------------------------------------------- ICRA has retained the long-term rating of Shrivardhman Milk Dairy Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]B+(Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 3.30 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category Long Term- 2.45 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Term Loan to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Incorporated in 2006, SMDPL is promoted by Tholia family in Jaipur, Rajasthan. The company is engaged in the business of processing of milk, milk products and sweets like Rasgulla, Gulab Jamun etc. The manufacturing plant of the company is located in RIICO Industrial Area, Kaladera, Rajasthan. SMDPL started its business as a job worker for Reliance for packaging of pasteurized milk and later on forward integrated into manufacturing of other products like ghee, sweets etc. SOWPARNIKA PROJECTS: ICRA Keeps B+ Ratings in Not Cooperating ------------------------------------------------------------- ICRA has retained the Long-Term ratings of Sowparnika Projects And Infrastructure Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B+(Stable): ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 24.00 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category Long Term 41.30 [ICRA]B+(Stable); ISSUER NOT Fund Based– COOPERATING; Rating continues Term Loan to remain under 'Issuer Not Cooperating' category Long Term- 88.70 [ICRA]B+(Stable); ISSUER NOT Unallocated COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Long term Fund 80.00 [ICRA]B+(Stable); ISSUER NOT Based Non COOPERATING; Rating continues Convertible to remain under 'Issuer Not Debenture Cooperating' category Programme ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Incorporated in 2003, Sowparnika Projects and Infrastructure Private Limited (SPIPL), is a closely-held private limited company involved in real-estate development. The company is the flagship entity of the Sowparnika Group, which comprises a group of companies owned and managed by Ms. Meenakshi Ramji, Mr. Ramji Subramaniam and associates. Till date, the company has completed 32 projects in Bengaluru, Trivandrum, Coimbatore, Mysore and Chenganassery, aggregating to 2.4 million sq. ft. SRAVAN FTWZ: ICRA Keeps B+ Debt Rating in Not Cooperating --------------------------------------------------------- ICRA has retained the long-term rating of Sravan FTWZ Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]B+(Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 50.00 [ICRA]B+(Stable); ISSUER NOT Unallocated COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Sravan FTWZ Private Limited was incorporated in 2012 and is promoted by Mr. G. Sambasiva Rao and family. The company envisages to develop a global supply chain & logistic infrastructure (Special economic Zone) SEZ as per Indian modified Government Free Trade Warehousing Policy at Visakhapatnam, Andhra Pradesh on a land area of 251.10 acres in two phases with the expected project cost of Rs.128.12 crore to be funded by term loan of Rs.80.00 crore which is yet to be sanctioned and promoter's contribution of Rs.48.12 crore with facilities including warehousing, open yard storage, container freight station, consolidation of cargo for different locations/countries, packing, repacking, reselling, reinvoicing, re-export and presales marketing activities and customizes logistics solutions. The FTWZ is proposed to be located at Appikonda Village, Peddagantyada Mandal, Visakhapatnam District, Andhra Pradesh which is easily accessible to both Visakhapatnam Port Trust and Gangavaram Port through national highway and is expected to commence phase 1 operations by March, 2020 while that of phase 2 operations by April 2022. SVS CONSTRUCTIONS: ICRA Keeps B Debt Rating in Not Cooperating -------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of SVS Constructions in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B (Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 25.00 [ICRA]B (Stable) ISSUER NOT Unallocated COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. M/s SVS Constructions was incorporated in the year 2012 as a partnership firm with Mr. R Rajasekhar Reddy and Mrs. R Laksmi Prasanna as partners. The entity is into the business of real estate development and has completed four residential projects in Bangalore since its inception. The promoters have long experience in the field of real estate development and construction through other group concerns. Presently, the company is engaged in execution of a residential apartment project, "Trend square Precioso" at Kalkere, Horamavu, Bangalore. Started in August 2016, the project is spread across 1.82 acres of land parcel and houses 140 apartments with an aggregate super built up area of 1,57,035 sqft. TIGHTWELL FASTNERS: ICRA Keeps B+ Ratings in Not Cooperating ------------------------------------------------------------ ICRA has retained the long-term rating of Tightwell Fastners in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]B+(Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 5.00 [ICRA]B+ (Stable) ISSUER NOT Fund Based/CC COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Long Term- 6.00 [ICRA]B+ (Stable) ISSUER NOT Fund Based/TL COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Long Term- 2.00 [ICRA]B+(Stable); ISSUER NOT Fund Based COOPERATING; Rating continues Limits/TL to remain under 'Issuer Not Cooperating' category Long Term- 1.00 [ICRA]B+(Stable); ISSUER NOT Unallocated COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. TWF was incorporated in 1976 as a partnership firm, with Mr. Anshul Kumar as the Managing Partner. The firm manufactures high precision automotive and engineering components for OEMs and its product range includes engine and transmission gears, precision-machined auto parts, cold forged studs and hot-machined components for the automobile industry. It caters to four-wheeler, two-wheeler and tractor segments as well as to industrial product manufacturers and consumer durable manufacturers. VARUN LOGISTICS: ICRA Keeps B+ Debt Ratings in Not Cooperating -------------------------------------------------------------- ICRA has retained the long-term rating of Sri Varun Logistics Park Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]B+(Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 31.34 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Term Loan to remain under 'Issuer Not Cooperating' category Long Term- 4.66 [ICRA]B+ (Stable) ISSUER NOT Unallocated COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Sri Varun Logistics Park Private Limited was incorporated in 2011 and is promoted by Mr. G. Sambasiva Rao and family which is the subsidiary of Sravan shipping Services Private Limited. The company proposes to establish a logistics park with the expected project cost of INR55.00 crore to be funded by term loan of INR31.34 crore and promoter's contribution of INR23.66 crore with facilities including warehousing, open yard storage, container freight station, stevedoring, custom house agent, transportation of goods from port to storage facility and vice versa and cargo handling services. The logistics park is proposed to be located at Ravada Village, Parawada Mandal, Visakhapatnam District, Andhra Pradesh which is easily accessible to both Visakhapatnam Port Trust (33 Km) and Gangavaram Port (22 Km) through national highway. VENKATA SAI: ICRA Keeps B+ Debt Rating in Not Cooperating --------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Venkata Sai Agro Industries' (VSAI) in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]B+(Stable) ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 10.00 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category As part of its process and in accordance with its rating agreement with Venkata Sai Agro Industries' (VSAI), ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with the aforesaid policy of ICRA, a rating view has been taken on the entity based on the best available information. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Incorporated in 2007, VSAI is a partnership firm involved in the milling of paddy and produces rice. The firm has a milling unit at Maanvi, Karnataka with an installed capacity of 8 metric tonnes per hour (MTPH) of milling. Its major products include boiled rice, raw rice, bran, broken rice and husk. The factory runs in two shifts daily. VSAI procures paddy from local farmers and has a diversified customer base across Andhra Pradesh, Telangana, Maharashtra and Karnataka. In FY2021, on a provisional basis, the firm reported a net profit of INR0.6 crore on an operating income (OI) of INR57.2 crore compared to a net profit of INR0.5 crore on an OI of INR49.41 crore in FY2020. =============== M A L A Y S I A =============== EA TECHNIQUE: Court Gives Six-Month Restraining Order Extension --------------------------------------------------------------- theedgemarkets.com reports that the High Court late on May 24 granted EA Technique (M) Bhd a six-month extension of the restraining order (RO) and leave for the company to hold a creditors' meeting. According to theedgemarkets.com, the extension was granted by Judicial Commissioner Liza Chan Sow Keng, who gave the extension of the restraining order from May 28 this year, after she in February granted a three-month restraining order on the shipping and transportation company. The report says Chan also granted leave (permission) for the disposal of two vessels, namely Nautica Batu Pahat and Nautica Renggam. The company was represented by Nathalie Ker and Lee Shih of Lim Chee Wee Partnership, theedgemarkets.com discloses. Last Feb. 28, Chan granted a restraining order to EA Technique after the firm entered into Practice Note 17 (PN17) status. EA Technique is an owner and operator of marine vessels. On Feb. 25, the company announced on Bursa Malaysia that it had triggered the criteria for PN17 status when its shareholders' equity as at Dec 31 last year stood at MYR5.96 million, which was less than 50% of its share capital of MYR179.755 million, while its auditor had highlighted its ability to continue as a going concern. Hence, the company is required to submit a regularisation plan to the Securities Commission Malaysia within 12 months. Earlier this month, external auditor Messrs. Ernst & Young PLT (EY) expressed a disclaimer of opinion in its audited financial statements for the financial year ended Dec. 31, 2021 (FY21), theedgemarkets.com recalls. According to EA Technique's bourse filing last May 18, EY had pointed to reported net losses of MYR150.6 million and MYR161.2 million for the group and the company respectively for FY21, theedgemarkets.com relays. It also noted that at end-December 2021, current liabilities of the group and the company had exceeded their current assets by MYR405.3 million and MYR416.9 million respectively, but the group and the company only had cash and bank balances of MYR6.4 million and MYR5.5 million respectively. "These events and conditions indicate the existence of material uncertainty that may cast significant doubt on the ability of the group and the company to continue as a going concern," said EY. ===================== N E W Z E A L A N D ===================== ARMSTRONG DOWNES: Creditor Seeks to Replace Liquidators ------------------------------------------------------- Stuf.co.nz reports that a large creditor of failed Wellington construction company Armstrong Downes Commercial is trying to replace the liquidators with someone with "some teeth" to ensure subcontractors get paid. According to the report, Armstrong Downes (ADC) shareholders had appointed David Ruscoe and Russell Moore from Grant Thornton as liquidators. However, Lower Hutt developer Kevin Melville, whose High St Holdings 2020 Ltd was a client, said he wanted to replace them with Damien Grant of Waterstone Insolvency as the new liquidator. "He doesn't care if people don't like him, he's going to go after these guys, and I think that's the right thing for the subbies, end of story," Stuff quotes Mr. Melville as saying. "I just want a stronger receiver with some teeth that's going to bite into Tony [Doile] and Simon [Taylor]." ADC had two directors, Messrs. Doile and Taylor. Its shareholder, 2 HB Ltd, was owned by Doile and Yellow Roof Trustees, which was in turn owned by Taylor and Lower Hutt lawyer Eugene Collins. Mr. Melville, through Brent Norling of Norling Law, proposed a creditors' meeting to vote on replacing the liquidators with Waterstone, Stuff says. "I just want to see these guys chased for some of their assets, I don't want to take their personal home off them, but they can sell some assets," Mr. Melville said. It was possible Mr. Ruscoe would vigorously pursue the shareholders, but said he had lost confidence in him. In a letter to creditors, dated May 23, Mr. Ruscoe said the liquidation was only three weeks old, and the priority had been to secure sites and assets. Court action would come at a cost to creditors, and being "aggressive" and "robust", as Mr. Norling described Mr. Grant, "doesn't necessarily mean that the best decisions are made". According to Stuff, Mr. Norling said a creditors' meeting, which liquidators decided not to hold, would have been a chance to review the liquidators' appointment and their plan. They also took issue with the shareholders' appointment of the liquidators, claiming it was common for liquidators appointed in such circumstances to be 'friendly' to the shareholders that appointed them. Stuff relates that Mr. Ruscoe said a creditors' meeting would have been expensive, and a range of creditors, including High St, had indicated they saw no value in incurring that cost. There was nothing sinister in shareholders appointing liquidators, and it could take months for a court to appoint liquidators, he said. ADC went into liquidation at the start of May, owing NZD9.2 million to 320 unsecured trade creditors and NZD2.8 million to secured creditors. It had eight construction projects on the go throughout the Wellington region, including the NZD125 million Paddington residential development, and a 40-apartment project in central Lower Hutt. The company was also involved with the redevelopment of Frank Kitts playground on the Wellington waterfront. A meeting of creditors would be held by June 13 at the latest, Mr. Ruscoe said, Stuff discloses. Notice of the meeting will be issued in coming days, with relevant documents available at www.grantthornton.co.nz. Armstrong Downes Commercial went into liquidation in early May. David Ruscoe and Russell Moore from Grant Thornton were appointed liquidators to the 10-year-old company. BT LORNE: Creditors' Proofs of Debt Due on June 21 -------------------------------------------------- Creditors of BT Lorne Street Limited are required to file their proofs of debt by June 21, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 23, 2022. The company's liquidators are: Steven Khov Kieran Jones Khov Jones Limited PO Box 302261 North Harbour, Auckland 0751 HAWKE'S BAY: Still Owes NZD1.7 Million, Liquidator Finds -------------------------------------------------------- Stuff.co.nz reports that a commercial fishing company in Hawke's Bay which went into liquidation earlier this year has been found to owe close to NZD1.7 million to its creditors, according to a recent report. Hawke's Bay Seafoods Ltd was put into liquidation by the High Court in Auckland in March after an application by accounting firm BDO Auckland. A report written by liquidator Heath Gair of Palliser Insolvency Limited lists 28 creditors, including ACC, BDO Auckland, Coca-cola Europacific Partners NZ Ltd, MBIE, and others who are owed closed to NZD1.7 million, Stuff discloses. This did not include money owed to "inter-company creditors". The company, which has not operated since 2019, was found not to have any physical assets or trading debtors by the liquidator. "An investigation into the records and affairs of the company will be conducted to determine whether any insolvent transactions have occurred that should be clawed back by the liquidator for the benefit of all creditors," the liquidator's report, as cited by Stuff, stated. "The liquidator will also investigate the possibility of any breaches of legislation by the company and its directors and officers that could benefit creditors." Stuff relates that the report found it was "not practicable" to estimate potential distributions to creditors nor to set an estimate date of completion for the liquidation. For over 20 years Hawke's Bay Seafoods exported hundreds of millions of dollars of fish and employed thousands of people. The company is the third belonging to the D'Esposito family to go into liquidation over the past year, Stuff says. Sole director Antonino "Nino" D'Esposito, was raised in the fishing industry in Wellington and started working at Harbour Inn Seafoods in Petone in the 1980s. Fines of NZD1.08 million were imposed on Hawke's Bay Seafoods in 2019 after it was found to have sold more than 27 tonnes of unreported fish, Stuff recalls. That year, its assets were sold to Ngati Kahungunu Inc. and began operating under a new entity, Takitimu Seafoods Ltd. It now faces a major restructure and up to 45 job losses after reporting an audited loss of NZD6.9 million, Stuff notes. In 2019, the family also formed another commercial fishing company, Eastern Fishing Ltd, with D'Esposito's wife Karina as sole director. It was placed into liquidation by shareholders in December last year owing more than NZD2 million, Stuff discloses. JONES CONTRACTORS: Court to Hear Wind-Up Petition on June 16 ------------------------------------------------------------ A petition to wind up the operations of Jones Contractors Limited will be heard before the High Court at Auckland on June 16, 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 KUROW-DUNTROON IRRIGATION: Placed in Receivership ------------------------------------------------- Otago Daily Times reports that a "significant" dispute about a cost blowout has left a North Otago irrigation company in receivership. Last week, the Kurow-Duntroon Irrigation Company Ltd (KDIC) was put into receivership and voluntary administration by Crown Irrigation Investments Ltd, ODT relates. According to the report, KDIC had been undertaking a NZD45 million upgrade to the Kurow-Duntroon irrigation scheme. ODT relates that the project, which began construction in 2019, involved laying 59km of piped irrigation infrastructure that would double the irrigation area from just under 2000ha to 4000ha, with a capacity to expand to service 5500ha. The project had been partly funded by Crown Irrigation Investments Ltd (CIIL) - the Crown entity set up to fund large-scale irrigation schemes - through a NZD388,000 grant and a NZD34.4million secured loan in the form of a general security agreement from November 2018. It also received a NZD3 million loan from the Waitaki District Council, ODT discloses. In August 2019, KDIC was issued an abatement notice by the Waitaki District Council because a section of the new pipeline blocked the view of the Waitaki River west of Kurow, which breached its consent. Work then had to be carried out to move the section underground and out of sight. Calibre Partners insolvency practitioner Brendon Gibson said there was a "significant" dispute between the KDIC and the project's designer Monadelphous over who was liable for the increased cost caused by the consent breach. Mr. Gibson was appointed joint receiver of the company alongside Neale Jackson, also of Calibre Partners. The dispute was still subject to arbitration, he said, notes the report. The pair had taken control of the assets and the company's management. Their focus would be to get the best outcome for the company's shareholders while keeping it operating. No timeframe could yet be put on the receivership, he said, adds the report. "KDIC was officially put into receivership by its board last Tuesday and shareholders were informed at a meeting on Wednesday in Kurow," according to ODT. BDO partners and insolvency practitioners Colin Gower, of Christchurch, and Rees Logan, of Auckland, were appointed joint administrators. Waitaki Mayor Gary Kircher said it was reassuring to know that Crown Irrigation had stepped in for the best interests of all parties involved. Despite the receivership, the council's loan was considered safe. "We'd like to see this cleared up as soon as possible for everyone's sake," Mr Kircher said, notes ODT. KDIC chairman Jock Webster declined to comment on the receivership. The Companies Office website stated that KDIC had 70 shareholders. On Friday, May 27, the company's first creditor meeting will be held in Oamaru where it will be decided whether a creditor committee should be set up and whether Mr Gower and Mr Logan should be replaced as administrators. Mr. Gower declined to comment, referring the Otago Daily Times to Mr. Gibson. The first receivership report is due in July, ODT notes. MA PETITE: Creditors' Proofs of Debt Due on July 5 -------------------------------------------------- Creditors of Ma Petite Bakery Limited are required to file their proofs of debt by July 5, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 24, 2022. The company's liquidator is: Lynda Smart Rodgers Reidy PO Box 39090 Harewood, Christchurch 8545 MEADD (2018): Court to Hear Wind-Up Petition on June 2 ------------------------------------------------------ A petition to wind up the operations of Meadd (2018) Limited will be heard before the High Court at Dunedin on June 2, 2022, at 10:00 a.m. Southern Foundations Limited filed the petition against the company on March 31, 2022. The Petitioner's solicitor is: Miles Davis Southern Foundations Limited Jenkins Anderson Limited 35 Blackett Street Rangiora 7400 ROLL RIGHT: Court to Hear Wind-Up Petition on June 2 ---------------------------------------------------- A petition to wind up the operations of Roll Right Fabrications Manufacturing and Electrical Design Limited will be heard before the High Court at Dunedin on June 2, 2022, at 10:00 a.m. Brake & Transmission NZ Limited filed the petition against the company on April 8, 2022. The Petitioner's solicitor is: James McMillan Dentons Kensington Swan 18 Viaduct Harbour Avenue Auckland =============================== P A P U A N E W G U I N E A =============================== PAPUA NEW GUINEA: S&P Alters Outlook to Stable, Affirms B-/B SCRs ----------------------------------------------------------------- S&P Global Ratings revised its outlook on Papua New Guinea (PNG) to stable from negative. S&P also affirmed its 'B-' long-term and 'B' short-term foreign and local currency sovereign credit ratings. The transfer and convertibility assessment remains 'B-'. Outlook The stable outlook reflects S&P's assumptions that fiscal consolidation efforts and policies included in an International Monetary Fund program will continue over the next year. This will help to narrow fiscal deficits and stabilize the country's debt burden. Downside scenario S&P could lower its ratings over the next 12 months if consolidation efforts do not appear to be taking place, raising concerns about the country's rapidly rising debt levels and debt serviceability. Upside scenario S&P could raise its ratings if there were a strong track record of implementing fiscal reforms, thereby improving its view of PNG's fiscal and debt metrics, as well as a strong improvement in GDP growth. This is unlikely to occur over the next 12 months. Rationale Despite an estimated decline of 3.5% in real GDP in 2020, S&P expects a modest economic recovery of 1.7% in 2021. Buoyant agricultural output and commodity prices drove growth in 2021, and the reopening of resource plants shuttered during the pandemic will support resource-related growth. The promise of new resource-related projects in the medium term should improve the country's economic prospects. The global pandemic exacerbated structural fiscal challenges within PNG. The IMF Staff-Monitored Program (SMP), which took place from February 2020 to June 2021, aimed to help PNG improve its public finances, catalyze budget support from external partners, and avoid financial distress. There has been progress on most reforms, and we anticipate this to continue. Nevertheless, lingering pandemic risks and limited government capacity could delay this progress. S&P's sovereign ratings on PNG reflect structural constraints inherent in a low-income economy dependent on the mining industry and served by weak institutions. Institutional and economic profile: PNG economy is recovering; resource projects on the horizon are positive for medium-term growth -- Economic growth is likely to pick up further in 2022 and beyond. -- The country's institutions are a weakness. -- Confirmation on LNG project timelines is a positive for medium-term growth prospects. In June 2022, PNG will head to election. In 2019, there was a change in leadership after a vote of no confidence was passed regarding resource-related deal negotiations. The leadership has mostly maintained existing policy. PNG's political scene is characterized by defections and switches of party allegiance, making implementation of policies difficult. An 18-month moratorium protects new governments from parliamentary no-confidence motions, which can lead to a relatively stable period for the first part of the five-year term. These issues are a feature of the country's volatile political system and underpin S&P's ratings. The PNG government aims to promote investment and address macroeconomic imbalances and economic diversification. Public-sector transparency remains an issue, evidenced by a lack of transparency around the recent restructure of state-owned enterprise (SOE) debt. The government intends to narrow its fiscal deficit and focus on PNG's longer-term strategy of economic diversification. The government's medium-term revenue and expenditure strategies provide a commitment to maintaining manageable debt levels. As the COVID-19 pandemic is starting to dissipate, against a backdrop of volatile markets and credit stress, S&P expects PNG's economic growth to remain volatile. PNG is heavily reliant on the commodity sector. This will have an effect on PNG government revenues and economic growth forecasts. There is some upside compared with budgeted revenue expectations, given recent high commodity prices and a rise in export volumes. The reopening of gold mines Progera and Ok Tedi scheduled for mid-2022 are likely to propel GDP to above 4% in 2022 and 2023. Within the past 12 months, the government and multinational resource companies have signed agreements regarding two liquified natural gas (LNG) proposals. The final investment decision on the Papua LNG project is likely to come in 2023, with construction to commence soon after. The P'nyang gas agreement, signed in February 2022, will commence construction once the Papua LNG plant is operational. S&P anticipates the construction of the new LNG projects to sharply accelerate economic growth. Because these construction phases will be sequential, the boost to economic growth could be less sharp but longer than what it observed during the PNG LNG project's construction phase, in 2010-2013. PNG is also conducting feasibility studies on the gold-copper mines of Wafi Golpu and Frieda River. It anticipates both to be large-scale projects. These projects will boost the economy through exports of natural resources as well as increased infrastructure benefits for rural areas. PNG continues to face pressing development needs. S&P estimate per capita GDP to be about US$3,110 in 2022. Its real per capita GDP growth remains low compared with its peers. The prevalence of crime in major cities deters investment and governmental institutions are weak, in S&P's view. Economic data inconsistency is another credit weakness. Flexibility and performance profile: Fiscal indicators and high public debt burden are prominent rating weaknesses -- Fiscal deficits are likely to narrow over the forecast period. -- Debt will peak within our forecast window and is shifting toward external concessional sources. -- External accounts are improving, with high current account surpluses. Foreign-exchange shortages continue to suppress business activity. S&P estimates the general government deficits to average 4.3% of GDP between 2022 and 2025. 2021 fiscal revenues are likely to exceed budgeted projections, driven by higher nontax revenues. However, tax revenues and dividends from state-owned corporations continue to lag. On the expenditure side, significant overruns were incurred due to an increase in retirement-related costs and remuneration to teachers, police, and defense personnel. Higher capital expenditure was driven by an increase in donor-provided capital grants. PNG's vulnerable, narrow tax base will continue to weigh on growth. The IMF SMP began in February 2020 and expired in June 2021. The government achieved 13 of its 17 structural benchmarks. The government's focus is on fiscal consolidation and lowering debt. S&P expects this focus to provide an anchor to the government's economic and social reform agenda. Carrying out the agenda has been difficult, given weak government institutions and pandemic-related disruptions delaying targets. A new six-month SMP that began in December 2021 is being used to consolidate progress from the initial SMP. S&P expected improvement in the country's fiscal position, but the current position remains weak. Net debt to GDP is likely to average 49.6% and interest to revenue is likely to average 17.9% across 2022-2025. Multilateral and bilateral partner loans are likely to finance fiscal deficits, with net debt peaking at about 54% of GDP in 2024. S&P said, "The government has included SOE debt in its debt measure that is higher than our standard definition of general government debt. A lack of disclosure means we are unable to separate the debt of SOEs from that of the general government. We have therefore included these in our general government debt figure." The government continues to increase its reliance on external borrowing, with its debt strategy targeting a 50:50 split between domestic and external financing. Wider fiscal deficits in recent years have strained the ability of the domestic financial system to absorb large amounts of government debt. PNG has diversified its funding base via drawdowns from a Credit Suisse, Asian Development Bank, and World Bank credit facility, budget support loans from Australia, and a US$500 million sovereign bond issuance. The government has used some of these proceeds to retire short-term expensive domestic debt, lowering its average cost of debt domestically. PNG's external position has improved, though it remains weak. The country's terms of trade volatility has subsided in recent years. The country's external imbalances have contracted during the past few years, with LNG production since 2014 resulting in repayment of external liabilities. External debt ballooned during the construction phase of the PNG LNG project between 2010 and 2013. During this time, large current account deficits--financed by a combination of external debt and foreign direct investment--averaged about 30% of GDP. Future LNG projects could exacerbate external imbalances again during the construction phase. S&P projects current account surpluses across our forecast period, rather than the double-digit current account deficits of 2010-2013. This is because it believes current project timelines are quite optimistic, given the global environment due to the pandemic, and the effect of economic growth will be moderate compared with the rapid level of activity that occurred in 2010-2013. S&P said, "We forecast net external debt to be about 111% of current account receipts (CARs) in 2022. PNG's net external debt peaked at 370% of CARs in 2012. We consider PNG's strong current account surpluses to overstate its external position. "Official foreign-exchange reserves have increased over the past 12 months to about US$2.7 billion as of December 2021, up from US$2.3 billion due to additional external financing from the IMF's rapid credit facility. We believe PNG maintains extensive foreign-exchange restrictions. This is symptomatic of a currency that persists above the market-clearing exchange rate." PNG's exchange-rate arrangements are "crawl-like," according to the IMF. The PNG kina has depreciated against the U.S. dollar, falling around 15% since 2015. More broadly, the Bank of PNG's weak monetary policy flexibility is a rating constraint. This weakness mainly reflects the limited transmission of monetary policy settings to the interest rates faced by borrowers, largely because of the high level of liquidity in the banking system. PNG's banking system is stable, with limited competition. It relies heavily on deposit funding, which is supported by high levels of liquidity. It also has a small net external asset position and limited linkages to global markets. That said, the country's low income levels and credit concentrations increase banking system risks. Legal infrastructure and judicial system delays also pose challenges to enforcing creditor rights. In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The committee's assessment of the key rating factors is reflected in the Ratings Score Snapshot above. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. Ratings List RATINGS AFFIRMED; OUTLOOK ACTION TO FROM PAPUA NEW GUINEA Sovereign Credit Rating B-/Stable/B B-/Negative/B RATINGS AFFIRMED PAPUA NEW GUINEA Transfer & Convertibility Assessment Local Currency B- PAPUA NEW GUINEA Senior Unsecured B- ================= S I N G A P O R E ================= CLEARIO HOLDINGS: Court to Hear Wind-Up Petition on June 3 ---------------------------------------------------------- A petition to wind up the operations of Cleario Holdings Pte Ltd will be heard before the High Court of Singapore on June 3, 2022, at 10:00 a.m. Attorney Dr. jur. Michael Jaffe, in his capacity as insolvency administrator of Wirecard AG, filed the petition against the company on May 9, 2022. The Petitioner's solicitors are: Oon & Bazul LLP 36 Robinson Rd. #08-01/06 City House Singapore 068877 FULLHOUSE HOME: Court to Hear Wind-Up Petition on June 3 -------------------------------------------------------- A petition to wind up the operations of Fullhouse Home Furnishings Pte Ltd will be heard before the High Court of Singapore on June 3, 2022, at 10:00 a.m. Maybank Singapore Limited filed the petition against the company on May 17, 2022. The Petitioner's solicitors are: M/s Advent Law Corporation 111 North Bridge Road #25-03 Peninsula Plaza Singapore 179098 RFT PTE: Court to Hear Wind-Up Petition on June 3 ------------------------------------------------- A petition to wind up the operations of R F T PTE LTD will be heard before the High Court of Singapore on June 3, 2022, at 10:00 a.m. Attorney Dr. jur. Michael Jaffe, in his capacity as insolvency administrator of Wirecard AG, filed the petition against the company on May 9, 2022. The Petitioner's solicitors are: Oon & Bazul LLP 36 Robinson Rd. #08-01/06 City House Singapore 068877 SEA SOLUTIONS: Court Enters Wind-Up Order ----------------------------------------- The High Court of Singapore entered an order on May 13, 2022, to wind up the operations of Sea Solutions Services Pte. Ltd. DBS Bank Ltd filed the petition against the company. The company's liquidators are: Gary Loh Weng Fatt Leow Quek Shiong BDO Advisory Pte. Ltd. 600 North Bridge Road #23-01 Parkview Singapore 188788 ********* 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 ***