/raid1/www/Hosts/bankrupt/TCRAP_Public/220610.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, June 10, 2022, Vol. 25, No. 110
Headlines
A U S T R A L I A
CAPITAL FORM: Second Creditors' Meeting Set for June 17
CARRIER ELECTRICAL: First Creditors' Meeting Set for June 20
DEWPOINT AIR: Second Creditors' Meeting Set for June 16
JANG & JANG: Second Creditors' Meeting Set for June 20
LAELNA PTY: First Creditors' Meeting Set for June 22
REMI CAPITAL: Debt Jumps from AUD70 Million to AUD124 Million
WISR FREEDOM 2022-1: Moody's Assigns (P)B2 Rating to Class F Notes
C H I N A
SUNAC CHINA: To Delay Payment of US$345MM Onshore Bond Due June 13
I N D I A
ACCUSONIC CONTROLS: CARE Lowers Rating on INR4cr LT Loan to D
ADVENTAGE AGENCY: CARE Lowers Rating on INR9.50cr LT Loan to B
ALANKRIT MERCANTILE: Liquidation Process Case Summary
ANCHOR AGRITECH: CARE Keeps D Debt Rating in Not Cooperating
ARUMUGA MUDALIAR: CARE Lowers Rating on INR5.11cr LT Loan to B-
BEE GEE: CARE Lowers Rating on INR10cr Long Term Loan to B
BORAH AUTOMOBILES: CARE Lowers Rating on INR13cr LT Loan to B
BUTTA INFRASTRUCTURE: Liquidation Process Case Summary
CHITHARA CASHEWS: CARE Lowers Rating on INR19cr LT Loan to B-
GARVE MOTORS: CARE Lowers Rating on INR19cr LT Loan to B
GREEN VIEW: CARE Keeps B- Debt Rating in Not Cooperating Category
GUPTA BUILDERS: CARE Keeps D Debt Rating in Not Cooperating
JAGJIT ENTERPRISES: CARE Keeps D Debt Rating in Not Cooperating
KISSAN INDUSTRIES: CARE Keeps B- Debt Rating in Not Cooperating
LUCKNOW MEDICAL: CARE Lowers Rating on INR8.50cr LT Loan to B
MANI CENTRA: CARE Keeps B- Debt Rating in Not Cooperating
MKR ENTERPRISES: CARE Keeps B- Debt Rating in Not Cooperating
MOD AGE: CARE Keeps D Debt Rating in Not Cooperating Category
MOHIJULI TEA: CARE Keeps D Debt Rating in Not Cooperating
OM ENTERPRISES: Liquidation Process Case Summary
PIONEER HOLON: CARE Lowers Rating on INR6.78cr LT Loan to B-
PM CONTRACTORS: CARE Keeps B Debt Rating in Not Cooperating
RADIUS GROUP: Bankruptcy Proceedings to Begin Against Promoter
RAJIV AGGARWAL: CARE Keeps B- Debt Rating in Not Cooperating
SATYAMEV EMINENCE: CARE Lowers Rating on INR25cr LT Loan to B
SUPREME IMPORT: CARE Keeps D Debt Ratings in Not Cooperating
T.R. MEGA: CARE Keeps B Debt Rating in Not Cooperating Category
VIRTUE INFRA: Liquidation Process Case Summary
N E W Z E A L A N D
AUTOBODY (2001): Creditors' Proofs of Debt Due on Aug. 7
CLANRYE HOLDINGS: Court to Hear Wind-Up Petition on June 27
JTH SIGNS: Commences Wind-Up Proceedings
LITTLE WONDERLAND: Creditors' Proofs of Debt Due on July 1
P&M FAMILY: BDO Auckland Appointed as Receivers
P A K I S T A N
PAKISTAN: Moody's Affirms B3 Issuer Rating, Alters Outlook to Neg.
PAKISTAN: PM Says Annual Budget to Levy More Taxes on Real Estate
S O U T H K O R E A
SSANGYONG MOTOR: Ssangbangwool Submits LOI for Carmaker
[*] SOUTH KOREA: No. of Younger Koreans Seeking Bankruptcies Mount
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A U S T R A L I A
=================
CAPITAL FORM: Second Creditors' Meeting Set for June 17
-------------------------------------------------------
A second meeting of creditors in the proceedings of Capital Form
Pty Limited has been set for June 17, 2022, at 11:00 a.m. at Level
9, 66 Clarence Street, in Sydney, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by June 16, 2022, at 4:00 p.m.
Daniel Frisken of O'Brien Palmer was appointed as administrator of
Capital Form on May 26, 2022.
CARRIER ELECTRICAL: First Creditors' Meeting Set for June 20
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Carrier
Electrical Services Pty Ltd will be held on June 20, 2022, at 11:00
a.m. via virtual meeting only.
Steve Naidenov and Ian Niccol of Aston Chace Group were appointed
as administrators of Carrier Electrical on June 7, 2022.
DEWPOINT AIR: Second Creditors' Meeting Set for June 16
-------------------------------------------------------
A second meeting of creditors in the proceedings of Dewpoint Air &
Energy Pty Ltd and Dewpoint Service NSW Pty Ltd has been set for
June 16, 2022, at 10:30 a.m. via teleconference.
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 June 15, 2022, at 4:00 p.m.
Terry Grant van der Velde and David Michael Stimpson of SV Partners
were appointed as administrators of Dewpoint Air on March 4, 2022.
JANG & JANG: Second Creditors' Meeting Set for June 20
------------------------------------------------------
A second meeting of creditors in the proceedings of Jang & Jang Pty
Ltd has been set for June 20, 2022, at 10:30 a.m. via
teleconference.
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 June 17, 2022, at 4:00 p.m.
Terry Grant van der Velde and David Michael Stimpson of SV Partners
were appointed as administrators of Jang & Jang on May 19, 2022.
LAELNA PTY: First Creditors' Meeting Set for June 22
----------------------------------------------------
A first meeting of the creditors in the proceedings of Laelna Pty
Ltd (trading as Kelbys Café) will be held on June 22, 2022, at
3:00 p.m. via teleconference only.
Mohammad Najjar of Chifley Advisory was appointed as administrator
of Laelna Pty on June 9, 2022.
REMI CAPITAL: Debt Jumps from AUD70 Million to AUD124 Million
-------------------------------------------------------------
news.com.au reports that the debt owed by an Australian investment
company that collapsed at the end of last month has ballooned from
an estimated AUD70 million to a whopping AUD124 million,
liquidators have revealed.
The company called REMI Capital, was placed into voluntary
administration on May 25, with Chris Baskerville from specialist
insolvency firm Jirsch Sutherland appointed as administrator.
At the first creditor's meeting held on June 6, the liquidator's
report showed that from the AUD124 million in outstanding debt,
AUD1 million was owed to employees and AUD62 million to unsecured
creditors, news.com.au discloses.
Meanwhile, 433 impacted investors have been identified across
Australia, news.com.au says.
This included 259 investors in Victoria, 110 in Queensland, 43 in
New South Wales, eight in Western Australia and Tasmania and a
handful in South Australia and the NT.
news.com.au relates that the preliminary investigation by the
administrator also uncovered that AUD6 million was owed to the
Australian Taxation Office and other statutory bodies and there was
AUD30 million in debt to related entity loans.
According to news.com.au, the independent investment company had
promised access to "responsibly and ethically managed investments"
and included a range of boutique property developments, its website
showed before it was shut down following its collapse.
One of the 433 investors impacted was a Melbourne dad of two, who
had been left "shocked" and "heartbroken" after REMI Capital
collapsed owing his family AUD300,000, news.com.au relays.
"This is heartbreaking. I am going home at the end of day and both
my wife and I, we are in tears separately driving back home from
work," Richard told news.com.au at the time.
"It's very emotional, it's impacting my relationship with my wife.
"This is torture. We don't know how long this is going to go on
for."
A bombshell email leaked to news.com.au revealed the extent of the
company's problems well before it went into liquidation.
Peter Kral, chief financial officer at REMI Capital, sent the email
on March 25 that said the company had "experienced several delays
in making" repayments in recent months.
He said the company was "proposing a payment plan to you of amounts
owed" and blamed a number of factors for the delays including
"forfeiture on the repayments of loans/monies by external parties
to Remi totalling approximately AUD4 million (Aus) which was
expected to be repaid to Remi late last/early this year,"
news.com.au relays.
news.com.au relates that the email also revealed that the sale of
properties was "time consuming and prone to significant delays" and
there was a "failure of promised funding to effect settlement and
unlock existing equity within current projects".
There is no suggestion of any wrongdoing by Mr. Kral.
Following the creditor's meeting, Richard said it was
"disappointing" to hear about the level of debt and he still did
not know if any of his AUD300,000 would be returned. His wife was
very upset, he added, news.com.au relays.
"It's a lifetime effect with us, it breaks our relationship, I'm
not sure how the relationship is going to go with my wife,"
news.com.au quotes Richard as saying.
"We've gone from financial freedom to financial prison. My wife is
angry that I could not see this was a (problem), but it was backed
by real estate and everything looked legit but now it has collapsed
badly . . . and there is no protection for investors."
After the collapse Mark Prestige, who had been managing partner at
REMI Capital for close to four years, acknowledged there had been a
"lack of communication" from the company in recent weeks, adds
news.com.au.
"Remi had been advised by external legal counsel not to communicate
over recent weeks until the modelling was complete that allowed
this difficult decision to be made," he wrote in an email addressed
to investors, shareholders and ex-staff members.
"REMI apologises for any lack of communication in recent weeks. We
ask you rely on any reports to creditors and not rely on any
speculation you may hear."
REMI Capital is an independent Australian boutique investment
company, with offices in Melbourne and Brisbane.
Christopher John Baskerville and Glenn Anthony Crisp of Jirsch
Sutherland were appointed as administrators of Remi Capital and
related entities on May 25, 2022.
WISR FREEDOM 2022-1: Moody's Assigns (P)B2 Rating to Class F Notes
------------------------------------------------------------------
Moody's Investors Service has assigned provisional ratings to the
notes to be issued by AMAL Trustees Pty Limited as trustee of Wisr
Freedom Trust 2022-1.
Issuer: Wisr Freedom Trust 2022-1
AUD132.50 million Class A1 Notes, Assigned (P)Aaa (sf)
AUD20.50 million Class A2 Notes, Assigned (P)Aaa (sf)
AUD35.25 million Class B Notes, Assigned (P)Aa2 (sf)
AUD14.50 million Class C Notes, Assigned (P)A2 (sf)
AUD12.50 million Class D Notes, Assigned (P)Baa2 (sf)
AUD15.25 million Class E Notes, Assigned (P)Ba2 (sf)
AUD8.25 million Class F Notes, Assigned (P)B2 (sf)
The AUD11.25 million Class G Notes are not rated by Moody's.
The transaction is a cash securitisation of a portfolio of
Australian unsecured consumer personal loans originated by Wisr
Finance Pty Ltd (Wisr, unrated). This is Wisr's second term
asset-backed securitisation transaction, following Wisr Freedom
Trust 2021-1, issued in May 2021.
Wisr is an Australian non-bank lender providing consumer loans,
including unsecured personal loans and secured auto loans, to
borrowers in Australia. As of March 2022, Wisr's consumer loan
portfolio amounted to around AUD663 million, consisting of over
35,000 receivables.
Wisr started out as a peer-to-peer lender in 2015 under the name of
DirectMoney. The funding model switched to wholesale in 2017,
followed by rebranding to Wisr in 2018.
RATINGS RATIONALE
The provisional ratings take into account, among other factors, (1)
Moody's evaluation of the underlying receivables and their expected
performance; (2) evaluation of the capital structure and credit
enhancement provided to the rated notes; (3) availability of excess
spread over the transaction's life; (4) the liquidity facility in
the amount of 1.5% of the rated notes balance; (5) the legal
structure; (6) Wisr's experience as servicer; and (7) presence of
AMAL Asset Management Limited is the back-up servicer.
According to Moody's, the transaction benefits from the high level
of excess spread available to cover losses arising from the
portfolio. The key challenge in the transaction is the limited
historical data available for the portfolio. Wisr is a relatively
new originator, with relevant historical default data only
available from the third quarter of 2017. As such, the pool's
performance could be subject to greater variability than the
currently available default data indicates. Moody's has
incorporated an additional stress into its default assumptions to
account for the limited data.
Moody's portfolio credit enhancement ("PCE") — representing the
loss that Moody's expects the portfolio to suffer in the event of a
severe recession scenario — is 34%. Moody's mean default for this
transaction is 7.2% and recovery is 5%.
Key transactional features are as follows:
The notes will be repaid on a sequential basis initially. Once
step-down conditions are satisfied, all notes, excluding Class G
Notes, will receive their pro-rata share of principal. Step-down
conditions include, among others, 40% subordination to the Class A2
Notes and no unreimbursed charge-offs. The repayment of principal
will revert to sequential on the call option date.
A swap provided by National Australia Bank Limited
(Aa3/P-1/Aa2(cr)/P-1(cr)) will hedge the interest rate mismatch
between the assets bearing a fixed rate of interest, and floating
rate liabilities. The notional balance of the swap will follow a
schedule based on amortisation of the assets assuming a certain
prepayment rate.
AMAL Asset Management Limited is the back-up servicer. If Wisr is
terminated as servicer, AMAL will take over the servicing role in
accordance with the standby servicing deed and its back-up
servicing plan.
Key pool features are as follows:
As of the March 31, 2022 cut-off date, the securitised pool
consisted of 9,438 personal loans. The total outstanding balance of
the receivables was AUD249,900,315.
The weighted average interest rate of the portfolio is 10.1%, with
interest rates ranging from 6% to 20.1%.
78.9% of loans are to borrowers who are in full-time employment.
The weighted average Equifax credit score of the portfolio is
784.
The weighted average remaining term of the portfolio is 65.5
months. The weighted average seasoning of the initial portfolio is
5.5 months.
Methodology Underlying the Rating Action
The principal methodology used in these ratings was "Moody's
Approach to Rating Consumer Loan-Backed ABS" published in September
2021.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that could lead to an upgrade of the notes include a rapid
build-up of credit enhancement due to sequential amortization or a
better-than-expected collateral performance. The Australian job
market is a primary driver of performance.
Factor that could lead to a downgrade of the notes is a
worse-than-expected collateral performance, poor servicing, error
on the part of transaction parties, a deterioration in the credit
quality of transaction counterparties, a lack of transactional
governance, or fraud.
=========
C H I N A
=========
SUNAC CHINA: To Delay Payment of US$345MM Onshore Bond Due June 13
------------------------------------------------------------------
South China Morning Post reports that heavily-indebted Chinese
property developer Sunac China hopes to extend the deadline of an
onshore bond maturing soon.
China's fourth-largest developer by sales, Sunac plans to meet
creditors this week and propose a delay in the payment of a CNY2.3
billion (USS$345 million) bond due on June 13, sources said late on
June 8, the Post relates.
It wants to repay the principal in four instalments over the next
two years, they added. It will repay 10%, 15%, 20% and 55% of the
principal of the yuan-denominated bond every six months through
June 13, 2024.
As far as interest is concerned, the firm chaired by Chinese
property mogul Sun Hongbin will offer to pay only the interest on
maturity on June 13. The interest, at an unchanged 7% coupon rate,
will be delivered semi-annually over the two years as well.
According to the Post, the developer failed to pay US$29.5 million
in interest on a US-dollar bond earlier and was in default after a
30-day grace period on May 12. It also said in a filing to the Hong
Kong stock exchange the same day that it did not expect to make
payments on three additional notes.
China's "three red lines", measures put in place since August 2020
to control systemic risk posed by weak property developers, have
sent the industry into a slump not seen since the 2015 stock market
crash, the report notes.
As a result, more developers are joining China Evergrande Group and
Kaisa Group Holdings on a list of firms failing to repay debt.
Jinke Property Group extended the payment deadline of its CNY1.24
billion onshore bond on May 30 and averted a default, while
Shanghai government-backed property company Greenland Holdings has
also sought to extend a bond by a year this month, according to the
Post.
In recent months, China's central government has rolled out a
number of policies to buoy the sector, while more than 100
municipal governments have eased restrictions on property sales and
purchases, lowering the down payment ratio and increasing the quota
of loans for home purchases, the Post relates.
However, market observers are not expecting a sharp recovery in the
bruised property sector in China any time soon, the report states.
"These measures will support property demand and help narrow the
nationwide sales decline . . . Nevertheless, it is likely to take
time for these policies to take effect," the report quotes Moody's
analyst Daniel Zhou as saying.
One of the country's top developers, with a strong presence in
major cities such as Beijing, Shanghai and Shenzhen, Sunac sold
only CNY12.85 billion worth of homes in May. This represents a 82%
drop compared with a year ago and a 6% drop compared with the
CNY13.6 billion worth of homes sold in April.
Trading in the company's shares has been suspended since April 1,
after Sunac did not deliver its annual results before March 31, as
required by the Hong Kong exchange, the Post notes.
About Sunac China
Sunac China Holdings Limited (SEHK:1918) --
http://www.sunac.com.cn/-- is principally engaged in the sales of
properties in the People's Republic of China. The Company operates
its business through two segments: Property Development and
Property Management and Others. The Company's subsidiaries include
Sunac Real Estate Investment Holdings Ltd., Qiwei Real Estate
Investment Holdings Ltd. and Yingzi Real Estate Investment Holdings
Ltd.
As reported in the Troubled Company Reporter-Asia Pacific on May
19, 2022, Moody's Investors Service has downgraded the corporate
family rating of Sunac China Holdings Limited to Ca from Caa1, and
the company's senior unsecured ratings to C from Caa2. The outlook
remains negative.
=========
I N D I A
=========
ACCUSONIC CONTROLS: CARE Lowers Rating on INR4cr LT Loan to D
-------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Accusonic Controls Private Limited (ACPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE B+; Stable
Short Term Bank 700.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
Under ISSUER NOT COOPERATING
Category and Revised from
CARE A4
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 24, 2021,
placed the rating(s) of ACPL under the 'issuer non-cooperating'
category as ACPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. ACPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 7, 2022, February 17, 2022, February 27, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings have been revised on account of non-availability of
requisite information. The revision in rating also considers delays
in debt servicing as recognized from publicly available
information.
ACPL, established on May 10, 1989, is involved in the assembling of
electrical control panels and power distribution equipments such as
Power Control Centers (PCCs) and Motor Control Centers (MCCs),
Programmable Logic Controller (PLC) panels, Capacitor control
panels, instrumentation panels and generator control panels. The
company has its manufacturing facility Savargaon, Paud – Kalwan
road, Mulshi, Pune.
ADVENTAGE AGENCY: CARE Lowers Rating on INR9.50cr LT Loan to B
--------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Adventage Agency Private Limited (AAPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.50 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Short Term Bank 4.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 18, 2021,
placed the rating(s) of AAPL under the 'issuer non-cooperating'
category as AAPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. AAPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 1, 2022, February 11, 2022, February 21, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The revision in ratings takes into account the non-availability of
requisite information. The revision also considers the decline in
scale of operations as well as an increase in overall debt in FY21
compared to FY20.
Jaipur (Rajasthan) based AAPL was incorporated in May 1992 by its
key promoter Mr. Dharam Pal Sehgal. AAPL is a Del Credere Agent of
Reliance Industries Limited for petrochemical products viz.
Polyethylene (PE), Polypropylene (PP) and Polyvinyl Chloride (PVC).
The company is a part of Jaipur based Advent Group which is engaged
into diversified businesses like trading of agro commodity,
dealership of Honda two wheelers etc.
ALANKRIT MERCANTILE: Liquidation Process Case Summary
-----------------------------------------------------
Debtor: Alankrit Mercantile Private Limited
402, Corporate Annexe
Sonawala Lane
Next to Udyog Bhavan
Goregaon East Mumbai
Mumbai City MH 400063
IN
Liquidation Commencement Date: June 6, 2022
Court: National Company Law Tribunal, Mumbai Bench
Date of closure of
insolvency resolution process: May 5, 2022
Insolvency professional: Sachin Dharmendra Jain
Interim Resolution
Professional: Sachin Dharmendra Jain
D-613, 6th Floor
Raghuvir Saffron
Althan Bhimrad Road
Althan, Opp Mansarovar Bunglows
Surat, Gujarat 395017
E-mail: sachindjain@gmail.com
alankrit.liquidation@gmail.com
Last date for
submission of claims: July 6, 2022
ANCHOR AGRITECH: CARE Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Anchor
Agritech (ARG) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.45 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 20, 2021,
placed the rating(s) of ARG under the 'issuer non-cooperating'
category as ARG had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. ARG continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 6, 2022, March 16, 2022, March 26, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
M/s. Anchor Agritech (ARG) was initially setup by Mrs. Kalpana
Desai as a sole proprietorship firm in 2013 under the name of M/s.
Anchor Chemicals. It was reconstituted into a partnership firm in
September 2015, under its current name by adding Mrs Kalpana Desai,
Mr. Jayesh Desai as a partner in the firm. The firm is engaged in
storage and handling of fruit and vegetables and their ripening,
packaging and distribution.
ARUMUGA MUDALIAR: CARE Lowers Rating on INR5.11cr LT Loan to B-
---------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Arumuga Mudaliar Sornam Educational Trust (AMSET), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.11 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 23, 2021,
placed the rating(s) of AMSET under the 'issuer non-cooperating'
category as AMSET had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. AMSET continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 6, 2022, February 16, 2022 and February 26, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of AMSET have been
revised on account of non-availability of requisite information.
Arumugha Mudhaliar Sornam Educational Trust (AMSET) was established
in March 1992 by Mr. A. Krishnaswamy and registered under Indian
Trust Act. The main objective of the trust is to provide education
services and engage in social welfare activities like eye camp and
blood donation camp to the rural population. Presently, the trust
runs 6 institutions consisting of an engineering college (both UG
and PG courses), Arts and Science College, Polytechnic College, one
teacher training college (B.Ed. course), Matriculation higher
secondary school and a nursery school. The institutions are located
in Cuddalore district, Tamil Nadu. The above institutions are
managed by experienced professionals in their respective fields.
BEE GEE: CARE Lowers Rating on INR10cr Long Term Loan to B
----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Bee Gee Automobiles (Solan) (BGA), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 26, 2021,
placed the rating(s) of BGA under the 'issuer non-cooperating'
category as BGA had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. BGA continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 9, 2022, February 19, 2022, March 1, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of BGA have been
revised on account of non-availability of requisite information.
Bee Gee Automobiles (Solan) (BGA) was established in July 1, 2014
as a proprietorship entity by Mr. Munish Gupta. The entity was
later on converted into proprietorship entity in 2014. BGA is an
authorized dealer of Tata Motors Limited (TML) for sale of all
commercial vehicles (with various range of bus, truck and loading
vehicle) and its spare parts for Solan & Shimla region.
BORAH AUTOMOBILES: CARE Lowers Rating on INR13cr LT Loan to B
-------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Borah Automobiles Private Limited (BAPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 13.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Short Term Bank 0.10 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 23, 2021,
placed the rating(s) of BAPL under the 'issuer non-cooperating'
category as BAPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. BAPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 6, 2022, February 16, 2022, February 26, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of BAPL have been
revised on account of non-availability of requisite information.
The ratings further consider decline in overall profitability,
deterioration in capital structure and debt coverage indicators
during FY21 over FY20.
Borah Automobiles Private Limited (BAPL) was incorporated in May,
2011 by Shri Manash Protim Konwar of Dibrugarh, Assam. The company
commenced operations from March, 2012 as an authorized dealer of
Tata Motors Ltd (TML) for its commercial vehicles, spares &
accessories in Dibrugarh, Assam. BAPL has its main commercial
vehicles showroom at Dibrugarh (Assam) where it also provides
repair and refurbishment services for TML commercial vehicles.
Besides, the company has small showrooms in rented premises in the
districts of Assam which include Tinsukia & Sivasagar.
BUTTA INFRASTRUCTURE: Liquidation Process Case Summary
------------------------------------------------------
Debtor: M/s Butta Infrastructure Private Limited
House No. 4/14, Butta House
KPHB Road, Madhapur
Hyderabad, TG 500081
IN
Liquidation Commencement Date: February 28, 2022
Court: National Company Law Tribunal, Amaravathi Bench
Date of closure of
insolvency resolution process: February 23, 2022
Insolvency professional: Gonugunta Murali
Interim Resolution
Professional: Gonugunta Murali
H.No. 16-11-19/4, G-1
Sri Laxmi Nilayam
Saleem Nagar Colony
Malakpet, Hyderabad
Telangana 500036
E-mail: gmurali34@gmail.com
- and -
MSKM Group, 11th Floor
1209, Vasavi MPM Grand
Yellareddyguda Road
Ameerpet, Hyderabad 500038
E-mail: buttainfraliq@rediffmail.com
Last date for
submission of claims: March 26, 2022
CHITHARA CASHEWS: CARE Lowers Rating on INR19cr LT Loan to B-
-------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Chithara Cashews (CC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 19.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 24, 2021,
placed the rating(s) of CC under the 'issuer non-cooperating'
category as CC had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. CC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 7, 2022, February 17, 2022 and February 27, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of CC have been revised
on account of non-availability of requisite information.
Karnataka based Chithara Cashews (CC) was established as a
partnership firm in February, 1998 and promoted by Mr. Gopinath
Kamath and Mrs. Radha G Kamath. The firm is engaged in processing
of raw cashew nuts into cashew kernels.
GARVE MOTORS: CARE Lowers Rating on INR19cr LT Loan to B
--------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Garve Motors Private Limited (GMPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 19.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 16, 2021,
placed the rating(s) of GMPL under the 'issuer non-cooperating'
category as GMPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. GMPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
January 30, 2022, February 9, 2022, February 19, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of GMPL have been
revised on account of Non-availability of requisite information.
Garve Motors Private Limited (GMPL) incorporated in February 2009
is an authorized dealer in passenger vehicles (PVs) segment for
Hyundai Motor (India) Limited (HMIL). GMPL is based out of Wakad,
Pune, Maharashtra and is engaged in sale of new cars, servicing of
vehicles and sales of spare parts and accessories for Hyundai
Motors.
GREEN VIEW: CARE Keeps B- Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Green View
Udyog Private Limited (GVUPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 30, 2021,
placed the rating(s) of GVUPL under the 'issuer non-cooperating'
category as GVUPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. GVUPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 13, 2022, February 23, 2022, March 5, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Assam based Green View Udyog Private Limited (GVUPL) was
incorporated in 2009 to setup a manufacturing unit of PVC pipes.
Since its inception, the company has been engaged in manufacturing
of polyvinyl chloride (PVC) pipes & fittings. The pipes and
fittings manufactured by the company find application in
irrigation, agriculture, potable water supply, sewerage & drainage
systems, tube wells etc. The manufacturing facility of the company
is located at Guwahati, Assam with an installed capacity of 2880
metric tons per annum (MTPA). Mr. Gajen Kalita, having around three
decades of experience in this line of business, looks after the day
to day operations of the company. He is supported by other
promoters Ms. Purabi Talukdar, Ms. Momi Talukdar and Ms. Moon
Talukdar along with a team of experienced professional.
GUPTA BUILDERS: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Gupta
Builders and Promoters Private Limited (GBPPL) continues to remain
in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 50.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 15, 2021,
placed the rating(s) of GBPPL under the 'issuer non-cooperating'
category as GBPPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. GBPPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
January 29, 2022, February 8, 2022, February 18, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in 2011, GBP is engaged in the development of
residential flats, independent plots and commercial & office
complexes.
JAGJIT ENTERPRISES: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Jagjit
Enterprises Private Limited (JEPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 13.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 24, 2021,
placed the rating(s) of JEPL under the 'issuer non-cooperating'
category as JEPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. JEPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 7, 2022, February 17, 2022, February 27, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Jagjit Enterprises Private Limited (JEPL) was incorporated in July
18, 1994 and is engaged in manufacturing of auto components for
heavy commercial vehicles including Cross Members, Cross Member
Assembly, Bumper Cross Member Assembly, Assy Air Tanks, Power
Steering Brackets and Steering Gearbox Mounting. JEPL is promoted
by directors Mr. Harprem Mann, Mr. Harmeet Mann and Mrs. Satwinder
Kaur Mann. JEPL has manufacturing unit and registered office
situated at Lucknow, Uttar Pradesh.
KISSAN INDUSTRIES: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Kissan
Industries (KI) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 12, 2021,
placed the rating(s) of KI under the 'issuer non-cooperating'
category as KI had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. KI continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 26, 2022, March 8, 2022, March 18, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The entity was set up in 1975 as a partnership firm under the name
Kissan Rice Mill, however, in 1995, the name of the firm was
changed to Kissan Industries. The firm is currently being managed
by Mr.Inderjit Singh and Mr.Kiran Deep Singh. The firm is engaged
in processing of paddy at its facility in Jalalabad, Punjab.
Besides KI, the partners are also engaged in other group
concerns-Kissan Solvex Private Limited (KSP) and Kissan Commission
Agent. KSPL is engaged in manufacturing rice bran oil and de-oiled
cakes while Kissan Commission Agent is engaged in trading of
paddy.
LUCKNOW MEDICAL: CARE Lowers Rating on INR8.50cr LT Loan to B
-------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Lucknow Medical Agencies (LMA), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.50 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 18, 2021,
placed the rating(s) of LMA under the 'issuer non-cooperating'
category as LMA had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. LMA continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 1, 2022, February 11, 2022, February 21, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of LMA have been
revised on account of non-availability of requisite information.
Delhi based Lucknow Medical Agencies (LMA) was established as
partnership firm in April 2000. LMA is engaged in trading of
Pharmaceuticals & Drugs to retailers within Delhi. LMA procures the
products directly from companies like Abott India, sun pharma,
Lupin, Glaxo, Astra Zeneca etc and sells directly to retailers in
Delhi. They have authorized distributorship of all the brands.
MANI CENTRA: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Mani Centra
(MC) continues to remain in the 'Issuer Not Cooperating '
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 0.29 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Short Term Bank 8.65 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 18, 2021,
placed the rating(s) of MC under the 'issuer non-cooperating'
category as MC had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. MC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 1, 2022, February 11, 2022, February 21, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Gurgaon, Haryana based Mani Centra was established in April 1, 1995
as a Partnership Firm by Ajay Chugh, Gaurav Chugh and Amit Chugh
sharing profit losses in the ratio of 2:2:1 respectively. MC is an
export-oriented company engaged in the manufacturing and export of
readymade garments mainly for women segments (ladies' garments like
tops, dresses, palazzos, blouses and scarfs.). The manufacturing
process of the company is units located in Udyog Vihar, Haryana.
MKR ENTERPRISES: CARE Keeps B- Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of MKR
Enterprises (ME) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 12, 2021,
placed the rating(s) of ME under the 'issuer non-cooperating'
category as ME had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. ME continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 26, 2022, March 8, 2022, March 18, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
MKR Enterprises is a proprietorship firm engaged in the trading and
manufacturing of gold and silver bullion and ornaments. The firm is
located in Agra, Uttar Pradesh which is a hub of gold and silver
trading. Approximately 60% of the firm's operations are based on
trading while the remaining 40% relies on manufacturing. The firm
outsources the manufacturing of silver ornaments and markets the
products in southern regions of India such as Chennai, Vijayawada,
etc. through its own jewellery shop.
MOD AGE: CARE Keeps D Debt Rating in Not Cooperating Category
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Mod Age
Consultants & Advisory Services Private Limited continues to remain
in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non Convertible 17.00 CARE D; ISSUER NOT COOPERATING;
Debentures Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated February 15, 2018, placed
the rating of Mod Age Consultants & Advisory Services Private
Limited under the 'issuer non-cooperating' category as the company
had failed to provide information for monitoring of the rating and
had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. The company continues to be
non-cooperative despite repeated requests for submission of
information through e-mails dated May 27, 2022, May 18, 2022, May
16, 2022 and phone calls.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
At the time of last rating on June 8, 2021, the following were the
rating weaknesses (updated for the information available from
Registrar of Companies and Debenture Trustee).
Key Rating Weaknesses
* Delays in interest servicing and principal repayment The company
has ongoing delays in servicing of its interest obligations on the
outstanding NCDs as well as delay in repayment of principal amount
that was due in October, 2018. Being a strategic investment
company, Mod Age has no operations of its own and therefore does
not have any revenue from operations. The interest obligations of
the company are serviced through the funds infused by the
promoters. Timely servicing of debt obligations remains dependent
on timely infusion of funds by promoters/shareholders.
Incorporated on January 21, 2008, Mod Age Consultants & Advisory
Services Private Limited, erstwhile known as Mod Age Investment
Private Limited (name changed in December 2013), is a strategic
investment holding company of the promoters of Jyoti Structures
Limited (JSL). Mr K. R. Thakur and Mr P. K. Thakur, shareholders in
JSL, each hold 50% shareholding in Mod Age. As Mod Age Consultants
& Advisory Services Private Limited is only an investment holding
company, it does not have its own operational cash flows. On
October 30, 2013, the company issued NCDs of INR25.00 crore for
investment in shares and offering loans to group companies. Of
these, NCDs aggregating to INR17.00 crore was subscribed. The
company has placed 1.18 crore shares of JSL as collateral against
the NCD issue. The funds raised by the NCD issued are utilised for
investment into shares of Surya India Fingrowth Private Limited, a
group company.
MOHIJULI TEA: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Mohijuli
Tea Co Private Limited (MTCPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.52 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 30, 2021,
placed the rating(s) of MTCPL under the 'issuer non-cooperating'
category as MTCPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. MTCPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 13, 2022, February 23, 2022, March 5, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Mohijuli Tea Company Private Limited (MTCPL) was established in
1991 by Mrs. Rumena Rehman, Mr. Nilufar Rehman and Mr. Atikur
Rehman. The company is engaged in the processing of black tea and
has installed capacity of 15 lakh kg per annum. The manufacturing
facility is located at Guwahati, Assam.
OM ENTERPRISES: Liquidation Process Case Summary
------------------------------------------------
Debtor: Shree Om Enterprises Private Limited
B-11/2, Back Side Ground Floor
Okhla Industrial Area, Phase II
New Delhi South Delhi 110020
India
Liquidation Commencement Date: May 30, 2022
Court: National Company Law Tribunal, Bench-III, New Delhi
Date of closure of
insolvency resolution process: May 24, 2022
Insolvency professional: Ms. Archana Singhal
Interim Resolution
Professional: Ms. Archana Singhal
F-601, Mayurdhwaj Apartment
Plot No. 60, I.P. Extension
New Delhi 110092
E-mail: archanafca@gmail.com
- and -
118, Himvarsha Apartments
103, I P Extension
New Delhi 110092
E-mail: liquidator.soepl@gmail.com
Last date for
submission of claims: June 23, 2022
PIONEER HOLON: CARE Lowers Rating on INR6.78cr LT Loan to B-
------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Pioneer Holon Agroecology Private Limited (PHAPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.78 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 26, 2021,
placed the rating(s) of PHAPL under the 'issuer non-cooperating'
category as PHAPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. PHAPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 9, 2022, February 19, 2022, March 1, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of PHAPL have been
revised on account of non-availability of requisite information.
The ratings, further, factored in reported net losses, deteriorated
capital structure and debt coverage indicators during FY21.
Pioneer Holon Agroecology Private Limited (PHAPL) was incorporated
in March 2, 2012 by Mr. Bharati Bhushan Ray, Since its inception,
PHAPL is engaged in the business of providing cold storage services
primarily for potatoes, onion, ginger to local farmers and traders
on rental basis with an aggregate storage capacity of 5000MT per
annum. The cold storage facility of the company is located at
Khordha, Bhubaneswar, and Odisha. Besides providing cold storage
facility, the company also provides interest bearing advances to
farmers for their agricultural activities against the receipts of
potato stored.
PM CONTRACTORS: CARE Keeps B Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of PM
Contractors Private Limited (PCPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.50 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Short Term Bank 3.50 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 19, 2021,
placed the rating(s) of PCPL under the 'issuer non-cooperating'
category as PCPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. PCPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 2, 2022, February 12, 2022, February 22, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
PM Contractors Private Limited was incorporated in the year 2011
with its office located at Plot No. 424/2388, sri Radha Garden,
Swarnapuri Road, Bhubaneswar -751024. Since its inception, the
entity has been engaged in civil construction business in the
segment like roads, tunnels, bridges, cannels and water supply pipe
line on the behalf of RWS&S Division, Rural Work Division, Puri,
NPCC Ltd. Bhubaneswar and Irrigation Division of Odisha. Mr.
Prasanna Kumar Mohanty and Mrs Laxmipriya Mohanty looks after the
day to Activities Company along with a team of technical and
non-technical professionals who are having long experience in this
industry.
RADIUS GROUP: Bankruptcy Proceedings to Begin Against Promoter
--------------------------------------------------------------
The Economic Times reports that the bankruptcy court has ordered
personal insolvency proceedings against Sanjay Chhabria, promoter
of property company Radius Group. This is the first high-profile
case to be admitted for personal insolvency since higher courts
stayed earlier petitions, while a tribunal verdict is also pending
in another case.
The Mumbai bench of the National Company Law Tribunal (NCLT) passed
the order on a petition filed by Beacon Trusteeship, ET says.
Two Radius Group companies are already into NCLT, the report notes.
Radius Estate and Developers was admitted a year ago, wherein the
Adani Group emerged the highest bidder, ET recalls. Separately,
Radius Estate Projects Pvt Ltd is also in NCLT, with an appellate
authority directing NCLT Mumbai to hear Piramal Group's plea
against allowing Radius to exit insolvency proceedings.
ET relates that the Supreme Court had stayed personal insolvency
proceedings against Anil Ambani in September 2020 after questions
were raised about the law's constitutional validity. State Bank of
India (SBI) had filed a plea to initiate personal insolvency
proceedings against Anil Ambani.
In the case of the Wadhavans, promoters of defaulting financier
Dewan Housing Finance (DHFL), the adjudication authority is yet to
pass an order on initiating personal insolvency proceedings
following a report of the resolution professional, ET reports.
A two-member Mumbai NCLT bench, comprising Judge H V Subbarao and
Chandra Bhan Singh, passed an order under Section 100 of the
Insolvency and Bankruptcy Code in the Radius case, according to ET.
Beacon Trusteeship Ltd has claimed INR97 crore in dues. The
resolution professional has invited claims from other lenders for
verification by June 28 and aims to close the resolution process by
November 30 this year.
In case of individual insolvency, the debtors and creditors
negotiate a repayment plan, which is implemented under the
supervision of the resolution professional. The recovery would
involve the sale of debtor assets or the implementation of a
repayment plan.
Radius Estate and Developers have verified claims of INR2,724 crore
from financial creditors, while Radius Estate Projects Pvt Ltd has
verified INR2,628 crore of claims from financial creditors, ET
discloses.
On March 1, the court-appointed resolution professional Prakul
Thadi was directed to recommend whether to accept or reject the
application filed by Beacon Trusteeship.
ET says the two-member bench has directed the debtor - Chhabria -
not to transfer, alienate, encumber, or dispose of his assets or
legal rights. The bench also noted that the resolution professional
had not requested instruction from the tribunal to initiate
negotiation between the debtor and the creditor for a repayment
plan.
Radius Estates and Developers Private Limited operates as a real
estate company. The Company offers construction of residential,
commercial, and infrastructure projects. Radius Estates and
Developers serves customers in India, Dubai, Singapore, Hong Kong,
and the United States and United Kingdom.
RAJIV AGGARWAL: CARE Keeps B- Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Rajiv
Aggarwal (RA) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 14, 2021,
placed the rating(s) of RA under the 'issuer non-cooperating'
category as RA had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. RA continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 28, 2022, March 10, 2022, March 20, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which, however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Rajiv Aggarwal, a partnership firm established in the year 2015 by
Mr. Rajiv Aggarwal and Mr. Salil Aggarwal and is engaged in civil
construction work which involves construction of commercial
building, control rooms, hostels, office buildings installation of
electric, sanitary, plumbing etc. The firm mainly operates in
Delhi. The firm receives orders from government organizations
through tendering process. On the other hand the firm procures
various materials viz. Cement, Steel & TMT
sheets/metals/bars/angles, equipment, pipes, sand, bricks, electric
materials, etc. from the local suppliers in across Delhi.
SATYAMEV EMINENCE: CARE Lowers Rating on INR25cr LT Loan to B
-------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Satyamev Eminence (SE), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 25.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 6, 2021,
placed the rating(s) of SE under the 'issuer non-cooperating'
category as SE had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SE continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 20, 2022, March 2, 2022, March 12, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of SE have been revised
on account of non-availability of requisite information.
Satyamev Eminence is a high-end commercial project being developed
by Satyamev Eminence (Satyamev group) at Science city road, Sola,
Ahmedabad. The Project consists of one commercial building with 13
floors, having retail showroom/shops (108) and corporate offices
(232) along with terrace and basement. The Project has total
saleable area 4.26 lsf (Carpet area of 2.52 lsf). The project
development commenced in June 2016.
SUPREME IMPORT: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Supreme
Import Export Limited (SIEL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.13 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.87 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 16, 2021,
placed the rating(s) of SIEL under the 'issuer non-cooperating'
category as SIEL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SIEL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
January 30, 2022, February 9, 2022, February 19, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Supreme Import Export Limited (SIE) was incorporated as a public
limited company in November 2013 and is currently being managed by
Mr. Sanjeev Kumar, Mr. Rajeev Kumar, Mrs. Shelly Goyal and Mr. Sham
Lal. SIE is currently engaged in shelling, grading, sorting and
packaging of almonds (Non Parrel, Independent and Sonora) and
roasting and salting of cashewnuts and pistachios at its facility
located at Dhuri, Punjab.
T.R. MEGA: CARE Keeps B Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of T.R.
Mega Foods and Beverages LLP (TRFB) to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 13.50 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating moved to
ISSUER NOT COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from TRFB to monitor the ratings
vide e-mail communications dated May 2 2022, April 27 2022, April
21 2022 and numerous phone calls. However, despite our repeated
requests, the firm has not provided the requisite information for
monitoring the ratings. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of the best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating. The ratings on T.R. Mega Foods and
Beverages LLP bank facilities will now be denoted as CARE B;
Stable; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution
while using the above rating).
The rating has been revised on account of non-availability of
requisite information due to non-cooperation by T.R. Mega Foods and
Beverages LLP with CARE Ratings Ltd.'s efforts to undertake a
review of the rating outstanding. CARE Ratings Ltd. views
information availability risk as a key factor in its assessment of
credit risk. Further, the rating remain constrained by the project
completion risk associated with Food Park project and the funding
risk associated with the Compressed Bio-Gas (CBG) project, as the
financial closure for the project is yet to be achieved. The
rating, however, derives strength from the experience of the
promoters in the food products industry and location advantage.
Detailed description of the key rating drivers:
At the time of last press release published on May 17 2021, the
following were the rating strengths and weaknesses:
Key Rating Weaknesses
* Project completion risk associated with the Food Park project:
The firm is setting up an Agro Processing Cluster (Food Park) in
district Firozpur, Punjab. The project has been allotted to by
MOFPI (Ministry of Food Processing Industries) and the construction
for the same is expected to be completed by the end of May-21. Out
of the total project cost of INR27.44 cr., the firm has incurred
INR18.75 cr., as on March 10, 2021. The commercial operations of
the project are expected to commence from June 2021. Any
significant time or cost overrun will remain key rating
sensitivities. CARE cannot comment on the same as updated
information is not available due to non-cooperation by TRFB.
* Funding risk associated with the CBG project: The firm has
proposed to set-up Compressed Bio-Gas (CBG) Units in Kotkapura and
Zira, Punjab. The firm has projected a total project cost of
INR24.77 cr., proposed to be funded through a term loan of INR16.50
cr., which is yet to be tied-up. Construction on the projects is
expected to start after financial closure is achieved. The projects
are expected to achieve COD by March2023. Any significant time &
cost overrun will remain key monitorable going forward. CARE cannot
comment on the same as updated information is not available due to
non-cooperation by TRFB.
Key Rating Strengths
* Experienced promoters: The operations of the firm are currently
being managed by Mr. Sham Sunder Goyal, Mr. Harsh Kumar, Mr. Aman
Goyal, Mrs. Ashima Goyal, as its partners. The partners are having
an experience ranging from 5 to 35 years in the industry through
their association with other group entities- Modern Rice Mills
(engaged in rice selling business) and Tota Ram Commission Agents
Private Limited (engaged in trading of food products) and other
entities. The promoters have been in the industry for a long time
which will aid them in establishing a healthy relationship with
their suppliers and customers.
* Location advantage leading to easy availability of raw material:
Agro Processing Cluster (Food Park) of the firm is located in
district Ferozepur, Punjab, which has abundant availability of food
products. The entities setting up their units (potential food
processing units) will need agro products and milk as its main raw
material for the purpose of food processing. Punjab being a major
agriculture hub of the country, will ensure regular availability
of raw material at competitive rates and also at reduced freight
costs, which will encourage entities to set up their units in the
food park.
Liquidity analysis: Stretched
The firm is in the process of setting up its projects in Punjab.
Though the debt for the Food Park project has been tied up, the
firm is yet to achieve financial closure for the CBG projects.
Going forward, the ability of the firm to timely tie-up the debt
for the CBG project and complete both the projects within the time
& cost estimates will remain the key rating sensitivities. However,
CARE doesn't have the sufficient information to comment upon the
current liquidity position of the firm.
T.R. Mega Food and Beverages LLP (TRFB) was constituted as a
Limited Liability Partnership on July 12, 2018. The firm is
currently being managed by Mr. Sham Sunder Goyal, Mr. Harsh Kumar,
Mr. Aman Goyal, Mrs. Ashima Goyal as its partners. The firm is
setting up an Agro Processing Cluster (Food Park) in district
Firozpur, Punjab. The project has been allotted by MOFPI (Ministry
of Food Processing Industries). The firm is expected to derive
income from leasing/ sale of the plots and providing associated
services in the food park to the potential food processing units.
The Firm has also proposed to set-up Compressed Bio-Gas (CBG) Units
in Kotkapura and Zira, Punjab.
VIRTUE INFRA: Liquidation Process Case Summary
----------------------------------------------
Debtor: Virtue Infra and Entertainment Private Limited
7, Ravikiran
Tilak Nagar, Aurangabad
Maharashtra 431005
India
Liquidation Commencement Date: May 20, 2022
Court: National Company Law Tribunal, Mumbai Bench
Date of closure of
insolvency resolution process: March 27, 2022
Insolvency professional: Anagha Anasingaraju
Interim Resolution
Professional: Anagha Anasingaraju
1-2, Aishwarya Sankul
17 G.A. Kulkarni Path
Opp. Joshi's Railway Museum
Kothrud, Pune 411038
E-mail: rp.anagha@kanjcs.com
Last date for
submission of claims: June 18, 2022
=====================
N E W Z E A L A N D
=====================
AUTOBODY (2001): Creditors' Proofs of Debt Due on Aug. 7
--------------------------------------------------------
Creditors of Autobody (2001) Panel & Paint Services Limited are
required to file their proofs of debt by Aug. 7, 2022, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on June 7, 2022.
The company's liquidators are:
Thomas Lee Rodewald
Rodewald Consulting Limited
Level 1, The Hub
525 Cameron Road (PO Box 15543)
Tauranga 3144
CLANRYE HOLDINGS: Court to Hear Wind-Up Petition on June 27
-----------------------------------------------------------
A petition to wind up the operations of Clanrye Holdings Limited
will be heard before the High Court at Timaru on June 27, 2022, at
10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on April 27, 2022.
The Petitioner's solicitor is:
Courtney Waddell
Inland Revenue, Legal Services
PO Box 1782
Christchurch 8140
JTH SIGNS: Commences Wind-Up Proceedings
----------------------------------------
Members of JTH Signs Limited on June 3, 2022, passed a resolution
to voluntarily wind up the company's operations.
The company's liquidators are:
Kenneth Peter Brown
Paul Thomas Manning
BDO Tauranga Limited
Level 1, The Hub
525 Cameron Road (PO Box 15660)
Tauranga 3144
LITTLE WONDERLAND: Creditors' Proofs of Debt Due on July 1
----------------------------------------------------------
Creditors of Little Wonderland Limited and Building Consulting
Simple Group Limited are required to file their proofs of debt by
July 1, 2022, to be included in the company's dividend
distribution.
Little Wonderland commenced wind-up proceedings on May 31, 2022.
Building Consulting commenced wind-up proceedings on June 1, 2022.
The company's liquidator is David Thomas.
P&M FAMILY: BDO Auckland Appointed as Receivers
-----------------------------------------------
Rees Logan and Andrew McKay of BDO Auckland were appointed joint
and several Receivers and Managers of P&M Family Trust by Rabobank
New Zealand Limited under the terms of a general security deed
dated Dec. 22, 2009.
The Receivers and Managers can be reached at:
Rees Logan
Andrew McKay
BDO Auckland
BDO Centre, Level 4
4 Graham Street
Auckland 1140
===============
P A K I S T A N
===============
PAKISTAN: Moody's Affirms B3 Issuer Rating, Alters Outlook to Neg.
------------------------------------------------------------------
Moody's Investors Service has affirmed the Government of Pakistan's
B3 local and foreign currency issuer and senior unsecured debt
ratings, the (P)B3 senior unsecured MTN programme rating, and
changed the outlook to negative from stable.
The decision to change the outlook to negative is driven by
Pakistan's heightened external vulnerability risk and uncertainty
around the sovereign's ability to secure additional external
financing to meet its needs. Moody's assesses that Pakistan's
external vulnerability risk has been amplified by rising inflation,
which puts downward pressure on the current account, the currency
and – already thin – foreign exchange reserves, especially in
the context of heightened political and social risk. Pakistan's
weak institutions and governance strength adds uncertainty around
the future direction of macroeconomic policy, including whether the
country will complete the current IMF Extended Fund Facility (EFF)
programme and maintain a credible policy path that supports further
financing.
The decision to affirm the B3 rating reflects Moody's assumption
that, notwithstanding the downside risks mentioned, Pakistan will
conclude the seventh review under the IMF EFF programme by the
second half of this calendar year, and will maintain its engagement
with the IMF, leading to additional financing from other bilateral
and multilateral partners. In this case, Moody's assesses that
Pakistan will be able to close its financing gap for the next
couple of years. The B3 rating also incorporates Moody's assessment
of the scale of Pakistan's economy and robust growth potential,
which will provide the economy with some capacity to absorb shocks.
These credit strengths are balanced against Pakistan's fragile
external payments position, weak governance and very weak fiscal
strength, including very weak debt affordability.
The B3 rating affirmation also applies to the backed foreign
currency senior unsecured ratings for The Third Pakistan
International Sukuk Co Ltd and The Pakistan Global Sukuk Programme
Co Ltd. The associated payment obligations are, in Moody's view,
direct obligations of the Government of Pakistan.
Concurrent to the action, Pakistan's local and foreign currency
country ceilings have been lowered to B1 and B3, from Ba3 and B2,
respectively. The two-notch gap between the local currency ceiling
and sovereign rating is driven by the government's relatively large
footprint in the economy, weak institutions, and relatively high
political and external vulnerability risk. The two-notch gap
between the foreign currency ceiling and the local currency ceiling
reflects incomplete capital account convertibility and relatively
weak policy effectiveness, which point to material transfer and
convertibility risks notwithstanding moderate external debt.
A List of Affected Credit Ratings is available at
https://bit.ly/3zupbDq
RATINGS RATIONALE
RATIONALE FOR THE CHANGE IN OUTLOOK TO NEGATIVE FROM STABLE
HIGHER EXTERNAL VULNERABILITY RISK TO PERSIST DUE TO UNCERTAINTY
AROUND ADDITIONAL EXTERNAL FINANCING
Moody's expects Pakistan's current account to remain under
significant pressure, on the back of elevated global commodity
prices through 2022 and 2023. Pakistan's current account deficit
has widened to a cumulative $13.8 billion since the start of the
current fiscal year in July 2021 up until April 2022, compared to a
deficit of $543 million in the same period a year earlier. In the
absence of an equivalent inflow in the financial account, the rapid
widening of the current account deficit has led to a large drawdown
of the foreign exchange reserves. According to data from the IMF,
Pakistan's foreign exchange reserves have declined to $9.7 billion
at the end of April 2022, which is sufficient to cover less than
two months of imports. This compares with the $18.9 billion of
reserves at the end of July 2021.
Moody's projects the current account deficit to come in at 4.5-5%
of GDP for fiscal 2022 (ending June 2022), slightly wider than the
government's expectations. As global commodity prices decline
gradually in 2023 and as domestic demand moderates, Moody's expects
the current account deficit to narrow to 3.5-4% of GDP. Moody's
current account deficit forecasts are higher than previous (early
February 2022) projections of 4% and 3% for fiscal 2022 and 2023,
respectively.
The larger current account deficits underscore the need for
Pakistan to secure additional external financing, especially given
its very low foreign exchange reserves. Pakistan is in negotiations
with the IMF on the seventh review of the EFF programme. Moody's
expects Pakistan to successfully conclude the review by the second
half of the year, with the associated IMF financing to be disbursed
then. Conclusion of the seventh review, and further engagement with
the IMF, will also help Pakistan secure financing from other
bilateral and multilateral partners. In this scenario, Moody's
expects Pakistan to be able to fully meet its external obligations
for the next couple of years.
However, Moody's assesses that the balance of risks is on the
downside. An agreement with IMF could take longer than expected, as
the government may find it difficult to reduce fuel and power
subsidies given rising inflation. Recent moves by the government to
raise fuel prices signal its commitment to addressing issues raised
by the IMF. Still, political and social challenges will complicate
the government's efforts to agree on and implement further reforms,
such as revenue raising reforms. While not Moody's baseline
scenario, if Pakistan is unable to secure additional financing
later this year, foreign exchange reserves will continue to be
drawn down from already very low levels, increasing the risk of a
balance of payments crisis.
HEIGHTENED POLITICAL RISK CHALLENGES THE STABILITY AND
PREDICTABILITY OF POLICYMAKING
As mentioned, Pakistan's rising external vulnerability risk has
been amplified by rising inflation, particularly in the context of
heightened political and social risks. In April 2022, inflation
reached 13.4% year-on-year, with particularly high inflation in
food and energy which account for a very large share of the most
vulnerable households' budgets.
Moody's assesses that political uncertainty in Pakistan remains
high, even after the new government has been installed. The new
ruling coalition comprises of multiple political parties with
divergent interests, which is likely to make the enactment of any
legislation difficult, including those related to reforms under the
IMF EFF programme. Moreover, the next elections are due by the
middle of 2023. In Moody's view, political parties will find it
difficult to continually enact significant revenue-raising measures
in the run-up to the elections, especially in a high inflation
environment.
Rising interest rates are also likely to increasingly constrain the
government's policy choices, especially since interest payments
already absorb more than 40% of revenue.
Meanwhile, domestic political risk has also risen with a higher
frequency of terrorist attacks over the last year. According to the
Pak Institute for Peace Studies think-tank, the number of terrorist
attacks increase 42% in 2021 compared to a year ago. More frequent
terrorist attacks add to safety concerns, which may increase social
risks, as well as constrain business conditions and limit
investment.
Moody's assesses that there is a material probability of a
recurrence in domestic political stress that will impinge on the
effectiveness of policymaking and the government's ability to
implement timely economic reforms aimed at achieving macroeconomic
stability.
RATIONALE FOR THE AFFRIMATION OF THE B3 RATING
The affirmation of the B3 rating reflects Moody's assumption that
Pakistan will secure external financing, including through the
conclusion of the seventh review and subsequent reviews under the
IMF EFF programme and avoid a balance of payment crisis.
Pakistan's B3 rating also reflects Moody's assessment that the
country's large size and robust potential growth provides it with
some capacity to absorb economic shocks. Pakistan's potential
growth of about 5% in part reflects the country's favourable
demographics with its sizable under-30 population. Nonetheless,
Pakistan's potential growth is constrained by structural
challenges, including weak governance and weak competitiveness.
Pakistan, like many of its South Asian neighbours, is vulnerable to
environmental risks. Pakistan drains a significant portion of its
scarce fresh water resources every year and has a large share of
its population exposed to unsafe drinking water. The country is
also exposed to extreme weather events, such as heat waves and
floods, which can create negative economic and social costs.
Moody's projects Pakistan's real GDP growth to slow to 4.2% in
fiscal 2023, moderately lower than the government's projections.
This compares with growth of 6.0% in fiscal 2022. The moderation in
economic activity reflects the drag on domestic demand from rising
inflation and a tightening in monetary policy by the State Bank of
Pakistan. Moody's expects Pakistan's real GDP to pick up gradually
reaching 4.5-5% over fiscal 2024 and 2025.
Meanwhile, Pakistan's fiscal strength is very weak, a long-standing
feature of the sovereign's credit profile. Moody's expects fiscal
consolidation to stall ahead of the next general elections. Moody's
projects Pakistan's government debt to stabilise at around 70% of
GDP for fiscal 2022 and 2023, higher than the median of 63% for
B-rated sovereigns. Meanwhile, given a very narrow revenue base,
Pakistan's government debt as a share of revenue is very high at
around 560% in fiscal 2021. Moody's expects this ratio to remain
elevated at 550-590% over fiscal 2022 to 2024, well above the 290%
for the median B-rated sovereign. As mentioned, the sovereign also
has very weak debt affordability – one of the weakest among
Moody's rated sovereigns.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS
Pakistan's ESG credit impact score is Highly Negative (CIS-4),
reflecting its high exposure to environmental and social risks, as
well as its weak governance profile. Relatively weak institutions
and very weak fiscal strength constrain the government's capacity
to address ESG risks.
Exposure to environmental risk is Highly Negative (E-4 issuer
profile score) because of Pakistan's vulnerability to climate
change and the limited supply of clean, fresh and safe water.
Pakistan drains a significant proportion of its scarce fresh water
resources every year, and a large share of its population is
exposed to unsafe drinking water. Water utility services tend to be
intermittent, because of high leakage levels, limited supply and
insufficient access to power. The inadequate quality of drinking
water has health and economic consequences for Pakistan, such as
contributing to stunting which undermines human capital. With
varied climates across the nation, Pakistan is significantly
exposed to extreme weather events, including tropical cyclones,
drought, floods and extreme temperatures. In particular, the
magnitude and dispersion of seasonal monsoon rainfall influence
agricultural sector growth and rural household consumption.
Agriculture accounts for around 20% of GDP and exports, and nearly
40% of total employment. Overall, around 70% of the entire
population live in rural areas. As a result, both droughts and
floods can create economic, fiscal and social costs for the
sovereign.
Exposure to social risk is Highly Negative (S-4 issuer profile
score), driven by safety concerns that have limited investment and
diversification opportunities. Very low incomes as well as limited
access to quality healthcare, basic services, housing and
education, especially in rural areas, are also important social
issues. In addition, rising inflation has also led to higher social
tensions as cost of living increases. That said, the government has
taken steps to reduce poverty and inequality, strengthening social
safety nets, and promoting human capital as key priorities through
its expansive 'Ehsaas' programme (national poverty alleviation
programme), although effects will take time to materialise and are
limited by still weak institutions and governance.
Pakistan's governance risk exposure is Highly Negative (G-4 issuer
profile score). International surveys of various indicators of
governance, while showing some early signs of improvement, continue
to point to weak rule of law and control of corruption, as well as
limited government effectiveness. The score also takes into account
Pakistan's efforts in improving its macroeconomic policy
effectiveness in recent years. For example, the government has
amended the State Bank of Pakistan Act to strengthen the
independence of the central bank and restrict the central bank from
extending credit to the government.
GDP per capita (PPP basis, US$): 5,541 (2020 Actual) (also known as
Per Capita Income)
Real GDP growth (% change): -0.9% (2020 Actual) (also known as GDP
Growth)
Inflation Rate (CPI, % change Dec/Dec): 8.6% (2020 Actual)
Gen. Gov. Financial Balance/GDP: -7% (2020 Actual) (also known as
Fiscal Balance)
Current Account Balance/GDP: -1.5% (2020 Actual) (also known as
External Balance)
External debt/GDP: 37.6% (2020 Actual)
Economic resiliency: ba2
Default history: At least one default event (on bonds and/or loans)
has been recorded since 1983.
On May 30, 2022, a rating committee was called to discuss the
rating of Pakistan, Government of. The main points raised during
the discussion were: The issuer's economic fundamentals, including
its economic strength, have not materially changed. The issuer's
institutions and governance strength, have not materially changed.
The issuer's fiscal or financial strength, including its debt
profile, has not materially changed. The issuer has become
increasingly susceptible to event risks.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
FACTORS THAT COULD LEAD TO AN UPGRADE
The negative outlook signals that a rating upgrade is unlikely over
the near term. The outlook would likely be changed to stable if
Pakistan's external vulnerability risks decreased materially and
durably. This could come from access to material external financing
that significantly raises foreign exchange reserves, potentially
upon successful completion of the current IMF External Fund
Facility programme, with credible commitment from the government to
follow through the implementation of economic reforms. A resumption
of fiscal consolidation, including through implementing
revenue-raising measures, pointing to a meaningful improvement in
debt affordability would also be credit positive.
FACTORS THAT COULD LEAD TO A DOWNGRADE
The rating would likely be downgraded if there were a further
deterioration in Pakistan's external position that would threaten
the government's external repayment capacity and balance of
payments stability. This could come from protracted negotiations
with the IMF, resulting in delays in securing additional financing
from IMF or other sources beyond this year. Expectations that the
government debt would rise markedly, with a related deterioration
in debt affordability from already weak level, would also put
downward pressure on the rating. Finally, an increase in social and
political risk that disrupted policymaking and undermined
Pakistan's ability to secure financing would also be negative for
the rating.
The principal methodology used in these ratings was Sovereign
Ratings Methodology published in November 2019.
PAKISTAN: PM Says Annual Budget to Levy More Taxes on Real Estate
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Reuters reports that Pakistan's Prime Minister Shehbaz Sharif said
on June 7 that the annual budget this week will levy more taxes on
real estate, which he termed as a non-productive sector.
According to Reuters, the South Asian nation of 220 million people
is facing a balance of payment crisis with foreign reserves falling
below $10 billion, hardly enough for 45 days of imports, a widening
current account and historical fiscal deficit.
A fiscal consolidated budget to meet targets given by International
Monetary Fund (IMF) will be presented on
June 10.
"It is inevitable to tax non-productive assets," Sharif told a
pre-budget seminar in Islamabad. "The lands lying vacant just for
speculative purposes is disservice to this nation," he said.
Reuters says Sharif's predecessor Imran Khan had given the real
estate sector a blanket amnesty to whiten black money, or what his
government would say was to give a boost to the construction
business after COVID-19 shutdowns hit industry hard.
Reuters relates that Khan's opponents said his undue projection of
the real estate sector killed small and medium industry and
discouraged the business community to invest in trade and markets,
a charge he denies.
Sharif, who took office in April, told the seminar that he
inherited a broken economy with shrinking reserves, unmanageable
external debts and huge fiscal deficit, saying that the current
FY2021-22 will post historical fiscal deficit of PKR5,500 billion
($27.19 billion), Reuters relays.
"The country doesn't have money for oil and gas," Reuters quotes
Sharif as saying.
The economic meltdown has left Pakistanis to go through worst power
cuts and unbearable rising food prices with a double-digit
inflation, the report states.
According to Reuters, the government has announced it will revert
back to a five-day working week from six days Sharif decided
shortly after he came to power in April in a bid to try boost
productivity.
Pakistan's GDP growth will slow to 5% for the upcoming fiscal year
beginning on July 1, following a belt-tightening budget aimed at
winning the IMF support, notes Reuters.
"These are tough times, but we will overcome it," Sharif said.
=====================
S O U T H K O R E A
=====================
SSANGYONG MOTOR: Ssangbangwool Submits LOI for Carmaker
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Yonhap News reports that South Korean underwear company
Ssangbangwool said June 9 it has submitted a letter of intent (LOI)
to acquire SsangYong Motor Co. with an auction scheduled later this
month to find a new investor.
SsangYong's lead manager EY Hanyoung accounting firm received LOIs
from interested companies for SsangYong by 3:00 p.m. on June 9,
Yonhap relates.
"We have already submitted our LOI on June 7 and plan to join the
auction on June 24," a Ssangbangwool spokeswoman said over the
phone.
According to the report, SsangYong plans to select the final bidder
in the stalking horse bid in which the preliminary bidder suggests
its price for SsangYong ahead of the auction, and other bidders
submit their prices in the auction.
If a company submits a price higher than the stalking horse's
price, SsangYong will ask the stalking horse if it can pay the
highest bidding price to buy the carmaker, Yonhap says.
Last month, SsangYong selected a local consortium led by
chemical-to-steel firm KG Group as the preliminary bidder for
SsangYong, which has been under court receivership since April 15,
2021, after its Indian parent Mahindra & Mahindra Ltd. failed to
attract an investor amid the COVID-19 pandemic and its worsening
financial status.
Last month, four firms -- KG Group, Pavilion PE, EV parts maker EL
B&T and underwear company Ssangbangwool -- competed to become the
preliminary bidder for SsangYong in the stalking horse bid, Yonhap
discloses. KG and Pavilion PE formed a consortium after submitting
LOIs.
SsangYong and EY Hanyoung accepted the KG-led consortium as
preliminary bidder as the consortium beat others in terms of
acquisition price, fundraising plans, and employment guarantee
period.
Yonhap notes that the new auction comes two months after local
electric bus maker Edison Motors Co. failed to make a full payment
of KRW304.8 billion (US$249 million) for the debt-laden carmaker by
the March 25 deadline.
Yonhap says the court extended the deadline for SsangYong to find a
new owner and submit a new restructuring plan by six months until
Oct. 15.
SsangYong aims to select a preferred bidder at the end of June,
sign a deal in early July, submit its rehabilitation plan to the
court in late July and obtain the court's approval for its
restructuring plan in late August, according to the report.
About SsangYong Motor
Headquartered in Kyeonggi-Do, South Korea, Ssangyong Motor Co. Ltd.
engages in the manufacture and sale of automobiles. The Company
mainly manufactures and sells recreational vehicles (RVs), sports
utility vehicles (SUVs), multi-purpose vehicles (CDVs) and
passenger cars under the brand name of Rexton Sports, Korando,
Korando Sports, Korando Turismo, Tivoli, Tivoli Air and others. The
Company also provides automobile parts. The Company distributes its
products within domestic market and to overseas markets.
Mahindra & Mahindra Ltd. acquired a 70% stake in SsangYong for
KRW523 billion in 2011 and now holds a 74.65% stake in the
carmaker.
As previously reported in the Troubled Company Reporter-Asia
Pacific, SsangYong Motor filed for court receivership on Dec. 21,
2020, as it struggled with snowballing debts amid the COVID-19
pandemic, according to Yonhap News Agency. The decision came after
SsangYong Motor failed to pay KRW60 billion (US$54.8 million) worth
of debts to its three creditor banks.
On April 15, 2021, SsangYong Motor Co. was placed under court
receivership as its Indian parent Mahindra & Mahindra failed to
attract an investor amid the prolonged COVID-19 pandemic and
itscfinancial status is further worsening.
In November 2021, Edison Motors and SsangYong signed a memorandum
of understanding for the purchase and the Seoul Bankruptcy Court
approved the Edison-led consortium to take over SsangYong in
January. Initially, Edison planned to attract financial investors
to raise funds, but the company has been struggling with securing
enough funds for the acquisition. Consequently, SsangYong Motor
canceled the deal to sell its controlling stake to Edison Motors
due to the electric bus maker's payment failure.
[*] SOUTH KOREA: No. of Younger Koreans Seeking Bankruptcies Mount
------------------------------------------------------------------
Chosun.com reports that a steady stream of Koreans in the prime of
their working life have sought personal bankruptcy protection over
the past few years.
Most younger people used to opt for personal rehabilitation, which
involves debt restructuring, but now a growing number have no
choice but to plumb for total bankruptcy as the coronavirus
pandemic drags on, Chosun.com relates.
Chosun.com, citing the Seoul Bankruptcy Court, discloses that 5.7%
of applicants were in their 30s and 16.7% were in their 40s as of
the end of last year. When the court began tallying the statistics
by age in late 2020, 6.9% of applicants were in their 30s and 18.9%
were in their 40s. That means they account for 22 to 25% of all
personal bankruptcy filings.
One 36-year-old woman who has worked in a bar since she was in her
20s filed for personal bankruptcy early last year after borrowing
KRW100 million to cover daily living expenses and other costs,
according to Chosun.com. And a 47-year-old nightclub worker filed
for bankruptcy because she was unable to work for almost two years
due to lockdown.
Many try to restructure their debts first, Chosun.com says. A
33-year-old closed down his interior decoration business just a
year after opening it in 2019 and has close to KRW100 million worth
of debt. He did find a job in a company and paid off some debt with
KRW200,000 to KRW300,000 a month from his salary, but in the end he
got fired in a downsizing drive and declared himself bankrupt.
Chosun.com adds that the trend has changed the way the bankruptcy
courts handle such applications. Over the last three months, the
Seoul Bankruptcy Court waved through 95 to 97% of bankruptcies
filed by younger people. A source at the court said, "We are
granting most applications in order to let younger people get back
on their feet again."
*********
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
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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 ***