/raid1/www/Hosts/bankrupt/TCRAP_Public/220613.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
Monday, June 13, 2022, Vol. 25, No. 111
Headlines
A U S T R A L I A
BLUESTONE CBA 2015: Fitch Affirms 'B' Rating on Class F Notes
DELF ARCHITECTURAL: First Creditors' Meeting Set for June 21
FIDUCIA SERVICES: Second Creditors' Meeting Set for June 17
MESOBLAST LIMITED: Reports US$21.3 Million Loss in Third Quarter
MODULUM HOMES: Second Creditors' Meeting Set for June 20
PEPPER SOCIAL NO.1: S&P Assigns B+ (sf) Rating to Class F Notes
PIVOTAL HOMES: Reports Ransomware Attack Weeks Before Liquidation
SAKHA & SONS: Second Creditors' Meeting Set for June 21
I N D I A
ACCORD UDYOG: CRISIL Keeps C Debt Rating in Not Cooperating
ADANI GREEN: Fitch Affirms BB+ Rating on USD500MM Secured Notes
AJAY PROTECH: Insolvency Resolution Process Case Summary
BALAJEE LOHA: CRISIL Keeps B+ Debt Rating in Not Cooperating
BIONEXT PHARMA: Insolvency Resolution Process Case Summary
BLACKSTONE LOGISTICS: CRISIL Keeps B- Rating in Not Cooperating
CURA TECHNOLOGIES: Insolvency Resolution Process Case Summary
FAIRWEALTH HOUSING: Insolvency Resolution Process Case Summary
G. K. E. MEDICAL: CRISIL Keeps D Debt Rating in Not Cooperating
IL&FS LTD: NCLAT Orders Board to Pay Lenders on a Pro-Rata Basis
J.P. RICE: CRISIL Keeps B Debt Ratings in Not Cooperating
JAIPURIA BUILDCON: Insolvency Resolution Process Case Summary
KALAISELVI MODERN: CRISIL Keeps B+ Ratings in Not Cooperating
M. P. K. ISPAT: CRISIL Keeps D Debt Ratings in Not Cooperating
M. P. K. METALS: CRISIL Keeps D Debt Ratings in Not Cooperating
MAA BANBHORI: CRISIL Lowers Rating on INR8cr Loans to B
MKHS REALTY LLP: Insolvency Resolution Process Case Summary
MULTI FOOD: CRISIL Keeps B+ Debt Ratings in Not Cooperating
MUSADDILAL PROPERTIES: CRISIL Keeps B Rating in Not Cooperating
N.S.P. TEX: CRISIL Keeps B Debt Ratings in Not Cooperating
NOUVEAUX INDUSTRIES: CRISIL Reaffirms B+ Rating on INR5cr Loan
PEREGRINE PHOSPHATE: CRISIL Keeps B Rating in Not Cooperating
PLAZA TEX: CRISIL Keeps B+ Debt Rating in Not Cooperating
RAM MEHER: CRISIL Keeps D Debt Ratings in Not Cooperating
RED ROSE: CRISIL Keeps B Debt Ratings in Not Cooperating
RENEW POWER 4: Fitch Affirms 'BB-' Rating on USD585MM Sec. Notes
SHITAL FIBERS: CRISIL Keeps D Debt Ratings in Not Cooperating
SS MODERN: CRISIL Keeps B+ Debt Rating in Not Cooperating
SUMITRA SONS: CRISIL Keeps B Debt Ratings in Not Cooperating
SURYA NARAYAN: CRISIL Keeps B- Debt Ratings in Not Cooperating
THREE TEE: CRISIL Keeps B+ Debt Ratings in Not Cooperating
VEERGANAPATHI STEELS: CRISIL Keeps D Rating in Not Cooperating
VENKATESHWARA FARMS: CRISIL Keeps B Rating in Not Cooperating
VIJETHA SUPER: CRISIL Keeps D Debt Ratings in Not Cooperating
ZEDSON AGRO: CRISIL Keeps B Debt Ratings in Not Cooperating
I N D O N E S I A
ALAM SUTERA: Fitch Affirms LongTerm IDR at 'B-', Outlook Stable
N E W Z E A L A N D
BETTER BUSINESS: Creditors' Proofs of Debt Due on July 4
DDL HOMES: Homebuyers' Deposits Safe, Receivers Say
EKKO NATURALS: Creditors' Proofs of Debt Due on July 1
KIWI SHEDS: Court to Hear Wind-Up Petition on June 16
KSN GROUP: Court to Hear Wind-Up Petition on June 16
LINK TRUST: BDO Wellington Appointed as Receivers
LITTLE WONDERLAND: Creditors' Proofs of Debt Due on July 1
MM AND SON: Creditors' Proofs of Debt Due on July 15
[*] NEW ZEALAND: Business Liquidations Rise in Otago and Southland
S I N G A P O R E
ANIMAL WORLD: Court to Hear Wind-Up Petition on June 24
CHANGI AIRPORT: Annual Loss Narrows to SGD838M on Return of Travel
GIVEASIA KINDNESS: Creditors' Proofs of Debt Due on July 11
NATURAL COOL: MLT Seeks SGD1.4 Million in Unpaid Rent from Unit
THYSSENKRUPP STEEL: Creditors' Proofs of Debt Due on July 11
WHEAT BAUMKUCHEN: Court Enters Wind-Up Order
YONG TECK: Court Enters Wind-Up Order
S R I L A N K A
KOTALAGA PLANTATIONS: Fitch Affirms 'RD(lka)' Nat'l LongTerm Rating
- - - - -
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A U S T R A L I A
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BLUESTONE CBA 2015: Fitch Affirms 'B' Rating on Class F Notes
-------------------------------------------------------------
Fitch Ratings has affirmed six note classes from Bluestone CBA
Warehouse Trust 2015. The transaction is backed by a pool of
first-ranking Australian residential conforming and non-conforming
mortgage loans. All mortgages were originated by Bluestone Group
Pty Ltd and the notes were issued by Permanent Custodians Limited
in its capacity as trustee of Bluestone CBA Warehouse Trust 2015.
DEBT RATING PRIOR
---- ------ -----
Bluestone CBA Warehouse Trust 2015
A LT AAAsf Affirmed AAAsf
B LT AAsf Affirmed AAsf
C LT Asf Affirmed Asf
D LT BBBsf Affirmed BBBsf
E LT BBsf Affirmed BBsf
F LT Bsf Affirmed Bsf
KEY RATING DRIVERS
Asset Performance Resilient to Pandemic: 30+ day and 90+ day
arrears have been relatively stable over the last 12 months and
were at 5.2% and 3.0%, respectively, at end-March 2022. These were
above Fitch's 1Q22 Dinkum Non-Conforming RMBS Index of 1.9% and
0.8%, respectively. There have been no additional realised losses
in the past 12 months.
The transaction has a rolling one-year revolving period; therefore,
Fitch's analysis is based on a proxy pool, which was stressed based
on pool parameters and historical data to reflect Fitch's
expectation of the pool's future composition. The loan portfolio is
shaped by the parameters set for the portfolio characteristics.
These include maximum obligor exposure, maximum loan size, maximum
percentage of low documentation mortgages and interest-only loans.
The updated asset and cash-flow model was not rerun in accordance
with Fitch's APAC Residential Mortgage Rating Criteria.
Credit Enhancement Supports Ratings: Each tranche of rated notes
benefits from credit enhancement (CE) provided by the respective
subordinated notes and will revert to sequential paydown, building
up CE, if performance significantly deteriorates triggering an
amortisation event or if the revolving period is not extended.
Low Operational and Servicing Risk: Bluestone is a non-bank lender
with extensive experience in originating, servicing and managing
its mortgage portfolio. Fitch undertook an operational review and
found that the operations of the originator and servicer were
comparable with market standards and that there were no material
changes that may affect Bluestone's ongoing ability to undertake
administration and collection activities.
Bluestone's collection timelines, policies, procedures and
origination practices are largely in line with those of other
lenders in Australia after considering the mix of conforming and
non-conforming borrowers, as evident from the transaction's
historical performance.
Economic Rebound to Support Stable Outlook: The Stable Outlook is
supported by Australia's management of the pandemic and the
economic recovery after the removal of lockdown restrictions. Fitch
forecasts GDP growth to expand by 4.2% in 2022, with an
unemployment rate of 4.0%. GDP growth should normalise to 2.3% in
2023, with an unemployment rate of 4.3%.
The key rating drivers listed in the applicable sector criteria,
but not mentioned above, are not material to this rating action.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
Unanticipated increases in the frequency of defaults and loss
severity on defaulted receivables could produce loss levels higher
than Fitch's base case and are likely to result in a decline in CE
and remaining loss-coverage levels available to the notes.
Decreased CE may make certain note ratings susceptible to negative
rating action, depending on the extent of the coverage decline.
Hence, Fitch conducts sensitivity analysis by stressing a
transaction's initial base-case assumptions.
This section provides insight into the model-implied sensitivities
the transaction faces when assumptions - weighted-average
foreclosure frequency (WAFF) or weighted-average recovery rate
(WARR) - are modified, while holding others equal. The modelling
process uses the modification of default and loss assumptions to
reflect asset performance in up and down environments. The results
below should only be considered as one potential outcome, as the
transaction is exposed to multiple dynamic risk factors. Fitch
modifies the recovery rate to isolate the effect of a change in
recovery proceeds at the borrower level.
For more information on the rating sensitivities, please refer to
Fitch Affirms Six Tranches from Bluestone CBA Warehouse Trust 2015;
Removes from UCO; Outlook Stable, published July 8 2021.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Please refer to the rating action commentary published on July
8 2021.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Structured Finance
transactions have a best-case rating upgrade scenario (defined as
the 99th percentile of rating transitions, measured in a positive
direction) of seven notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of seven notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings
are based on historical performance.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
and the transaction. Fitch has not reviewed the results of any
third-party assessment of the asset portfolio information as part
of its ongoing monitoring.
As part of ongoing monitoring, Fitch conducted a review of a small
targeted sample of the originator's origination files and found the
information contained in the reviewed files to be adequately
consistent with the originator's policies and practices and the
other information provided to the agency about the asset
portfolio.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
DELF ARCHITECTURAL: First Creditors' Meeting Set for June 21
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Delf
Architectural Hardware Pty Ltd and DHAA (Aust.) Pty Ltd, trading as
Delf Architectural, will be held on June 21, 2022, at 11:00 a.m.
and 11:30 a.m., respectively, via videoconferencing facility only.
Richard Lawrence, Richard Albarran & Cameron Shaw of Hall Chadwick
were appointed as administrators of Delf Architectural on June 8,
2022.
FIDUCIA SERVICES: Second Creditors' Meeting Set for June 17
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Fiducia
Services Pty Ltd, trading as The Cups Estate, has been set for June
17, 2022, at 5:00 p.m. via virtual meeting technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by June 17, 2022, at 5:00 p.m.
Stephen Dixon of Hamilton Murphy Advisory was appointed as
administrator of Fiducia Services on May 13, 2022.
MESOBLAST LIMITED: Reports US$21.3 Million Loss in Third Quarter
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Mesoblast Limited reported a loss of US$21.30 million on US$2.01
million of revenue for the three months ended March 31, 2022,
compared to a loss of US$26.52 million on US$1.92 million of
revenue for the three months ended March 31, 2021.
For the nine months ended March 31, 2022, the Company reported a
loss of US$69.89 million on US$7.99 million of revenue compared to
a loss of US$76.75 million on US$5.46 million of revenue for the
same period in 2021.
As of March 31, 2022, the Company had US$681.69 million in total
assets, US$164.56 million in total liabilities, and $517.13 million
in total equity.
The Company held total cash reserves of US$76.8 million as of March
31, 2022.
"We continue our focus on maintaining tight control of cash
outflows from operating activities, which were reduced by 30% for
the nine months ended March 31, 2022 compared to the prior period.
In conjunction with reduced cash outflows, additional inflows will
be required to meet our forecast expenditure over the next 12
months. We have and will continue to access inflows such as
strategic partnerships, product specific financing, debt or equity
capital markets, or existing loan arrangements, with up to $40.0
million available subject to certain milestones. Therefore, we
have prepared the financial report on a going concern basis. The
dependency on these planned objectives indicates material
uncertainty which may cast significant doubt (or substantial doubt
as contemplated by Public Company Accounting Oversight Board
("PCAOB") standards) on our ability to continue as a going concern
and that we may be unable to realize our assets and discharge our
liabilities in the normal course of business," Mesoblast said.
"Our primary sources of liquidity have historically been equity
raisings, upfront and milestone payments from strategic license
agreements, and borrowings under our loan agreements. We also
expect net sales to become a source of liquidity. While in the
long-term we expect to be able to complete transactions, draw upon
these facilities and achieve approval of our product candidates to
provide liquidity as needed, there can be no assurance as to
whether we will be successful or, if successful, what the terms or
proceeds may be," the Company said.
A full-text copy of the Form 6-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1345099/000156459022022352/meso-6k_20220331.htm
About Mesoblast
Headquartered in Melbourne, Australia, Mesoblast --
www.mesoblast.com -- is a developer of allogeneic (off-the-shelf)
cellular medicines for the treatment of severe and life-threatening
inflammatory conditions. The Company has leveraged its proprietary
mesenchymal lineage cell therapy technology platform to establish a
broad portfolio of late-stage product candidates which respond to
severe inflammation by releasing anti-inflammatory factors that
counter and modulate multiple effector arms of the immune system,
resulting in significant reduction of the damaging inflammatory
process. Mesoblast has locations in Australia, the United States
and Singapore and is listed on the Australian Securities Exchange
(MSB) and on the Nasdaq (MESO).
Mesoblast reported a net loss of US$98.81 million for the year
ended June 30, 2021, a net loss of US$77.94 million for the year
ended June 30, 2020, and a net loss of US$89.80 million for the
year ended June 30, 2019. As of Sept. 30, 2021, the Company had
US$721.82 million in total assets, US$162.07 million in total
liabilities, and US$559.75 million in total equity.
Melbourne, Australia-based PricewaterhouseCoopers, the Company's
auditor since 2008, issued a "going concern" qualification in its
report dated Aug. 31, 2021, citing that additional cash inflows
will be required over the next twelve months in order to meet
forecast expenditure, including repayment of the Hercules debt
facility, that raises substantial doubt about its ability to
continue as a going concern.
MODULUM HOMES: Second Creditors' Meeting Set for June 20
--------------------------------------------------------
A second meeting of creditors in the proceedings of Modulum Homes
Pty Ltd has been set for June 20, 2022, at 10:30 a.m. via virtual
meeting technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by June 17, 2022, at 5:00 p.m.
Peter Goodin of Magnetic Insolvency was appointed as administrator
of Modulum Homes on May 13, 2022.
PEPPER SOCIAL NO.1: S&P Assigns B+ (sf) Rating to Class F Notes
---------------------------------------------------------------
S&P Global Ratings assigned its ratings to eight classes of
nonconforming and prime residential mortgage-backed securities
(RMBS) issued by Permanent Custodians Ltd. as trustee of Pepper
Social Trust No.1. Pepper Social Trust No.1 is a securitization of
nonconforming and prime residential mortgages originated by Pepper
Homeloans Pty Ltd.
The ratings reflect:
-- S&P's view of the credit risk of the underlying collateral
portfolio, including its view that the credit support is sufficient
to withstand the stresses it applies. The credit support for the
rated notes comprises note subordination and excess spread. The
assessment of credit risk considers the underwriting standard and
centralized approval process of the seller, Pepper Homeloans.
-- The availability of a retention amount and amortization amount,
which will all be funded by excess spread, but at various stages of
the transaction's term. They will have separate functions and
timeframes, including reducing the balance of notes outstanding.
-- S&P's expectation that the various mechanisms to support
liquidity within the transaction, including a liquidity facility
equal to 1.5% of the outstanding balance of the notes, principal
draws, and a yield-enhancement reserve--to the extent it is
funded--are sufficient under its stress assumptions to ensure
timely payment of interest.
-- The condition that a minimum margin will be maintained on the
assets.
-- That S&P also has factored into its ratings the legal structure
of the trust, which has been established as a special-purpose
entity and meets its criteria for insolvency remoteness.
Ratings Assigned
Pepper Social Trust No.1
Class A1-s, A$80.0 million: AAA (sf)
Class A1-a, A$145.0 million: AAA (sf)
Class A2, A$43.2 million: AAA (sf)
Class B, A$11.1 million: AA (sf)
Class C, A$7.5 million: A (sf)
Class D, A$5.4 million: BBB (sf)
Class E, A$2.4 million: BB (sf)
Class F, A$2.4 million: B+ (sf)
Class G, A$3.0 million: Not rated
PIVOTAL HOMES: Reports Ransomware Attack Weeks Before Liquidation
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news.com.au reports that liquidators of under-fire building company
Pivotal Homes have revealed the business was hit by a ransomware
attack just weeks before it collapsed.
The report says the hack will mean financial information about the
company will have to be pieced together using paper records.
According to news.com.au, managing director Michael Irwin announced
the organisation had gone into liquidation last week, citing rising
labour and construction costs as the reason it was impossible to
carry on.
Staff had no warning that the business was doing badly, nor were
they given any notice that they should start looking for jobs after
the business made cutbacks.
news.com.au relates that Mr. Irwin estimated the company has debts
exceeding AUD3.6 million and said the "lost data" meant there were
"no accurate records" of exactly how much is owed.
According to the Courier Mail, liquidator Chris Cook said the
attack was "legitimate" and had corrupted the company's files, the
report relays.
Up to six months of records have reportedly been lost.
According to news.com.au, Mr. Cook said the lost files had meant
staff of Pivotal had been attempting to settle accounts manually in
recent weeks, with the increased labour a likely contributor to the
company's failure.
"It was probably a case of it being the final straw," the report
quotes Mr. Cook as saying. "It was making it enormously difficult,
there was an enormous amount of labour involved in working out the
payments."
news.com.au adds that Tom Egan, the head sales manager for Pivotal
Homes, said he and a dozen or so other staff members were
"devastated" by the company's sudden collapse.
"No one knew," Mr. Egan, who has worked in the construction sector
for 25 years, told news.com.au. "At 1:30 p.m. [on June 2] everyone
was called to the boardroom. The liquidator advised that we were
terminated. It's devastating for everybody, you had staff there
[who had been working for] up to 10 years."
news.com.au relates that Mr. Egan said he only reported to the
managing director, Mr. Irwin, and otherwise oversaw all operations,
and saw no signs that the company was on its last legs.
Two major Australian construction companies, including Gold
Coast-based Condev and industry giant Probuild have already gone
into liquidation this year, news.com.au recalls.
Smaller operators like Hotondo Homes Hobart and Perth firms Home
Innovation Builders and New Sensation Homes, as well as
Sydney-based firm Next have also collapsed, leaving homeowners out
of pocket and with unfinished houses.
An industry insider told news.com.au earlier this year that half of
Australia's building companies are on the brink of collapse as they
trade insolvent, and it could see thousands of people's homes
impacted in the coming months
Pivotal Homes is a Gold Coast-based residential home builder
company.
Chris Cook and James Robba of Worrells were appointed liquidators
of Pivotal Homes Pty Ltd, which trades as Pivotal Homes, on May 26,
2022.
SAKHA & SONS: Second Creditors' Meeting Set for June 21
-------------------------------------------------------
A second meeting of creditors in the proceedings of Sakha & Sons
Pty Ltd has been set for June 21, 2022, at 11:00 a.m. via virtual
meeting only.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by June 20, 2022, at 4:00 p.m.
Steve Naidenov of Aston Chace was appointed as administrator of
Sakha & Sons on May 16, 2022.
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I N D I A
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ACCORD UDYOG: CRISIL Keeps C Debt Rating in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Accord Udyog
Private Limited (AUPL) continue to be 'CRISIL C Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL C (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with AUPL for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AUPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AUPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AUPL continues to be 'CRISIL C Issuer Not Cooperating'.
AUPL was incorporated in 2008, by the promoters, Mr Avinash Singh
and Ms Jyoti Singh. The Jamshedpur-based company trades in steel
products such as channels, pipes, angles, plates, chequer plates,
galvanised plain and corrugated sheets, thermo-mechanically treated
bars, bars, and other such products.
ADANI GREEN: Fitch Affirms BB+ Rating on USD500MM Secured Notes
---------------------------------------------------------------
Fitch Ratings has affirmed Adani Green Energy Limited Restricted
Group 1's (AGEL RG1) USD500 million senior secured notes due 2024
at 'BB+'. The Outlook is Stable. AGEL RG1 includes three
subsidiaries of Adani Green Energy Limited (AGEL).
The US dollar notes were issued in part by each of the three SPVs
in the restricted group (RG). The notes are stapled together to
mimic the structure of the restricted pool. The issuers directly
own operating assets and are not merely lenders to the operating
entities, unlike other rated issuance from most Indian RGs. All
covenants or triggers are on an aggregate basis. Each SPV
guarantees the note obligations of the other two SPVs, although the
notes constitute each issuer's obligations only on a several
basis.
RATING RATIONALE
The affirmation reflects the credit profile of AGEL RG1, which
operates solar generation assets across India with a combined
capacity of 930MW. The rating is underpinned by long-term
fixed-price power purchase agreements (PPAs), commercially proven
technology with a pure solar portfolio, experienced operations and
maintenance (O&M) contractors and adequate financial profile.
Noteholders benefit from a standard security package and robust
covenants restricting distributions. The notes have a bullet
repayment due in 2024. However, the refinancing risk is mitigated
by the remaining terms of the PPAs, the group's established access
to banking and capital markets, and a senior debt restricted
amortisation account. Fitch assumes the notes will be refinanced at
maturity, with the refinancing debt to be amortised across the
remaining PPA terms.
Fitch considers revenue from sovereign-backed NTPC Limited
(BBB-/Negative) and Solar Energy Corporation of India (SECI), to
which AGEL RG1 contracts 57% of its total capacity, as fully
contracted revenue and apply the fully contracted project
threshold. SECI's credit quality does not constrain the rating, as
revenue exposure to SECI presents a systematic sector risk.
Fitch does not rate the state-owned distribution companies that
purchase power from some projects of the RG. The counterparties
have weak credit profiles and varying history of payment delays,
although exposure to multiple counterparties mitigates the risk.
Fitch believes that it is prudent for such projects to meet a
higher threshold to achieve the same rating as other projects with
strong counterparties, all else being equal. Hence, Fitch bases the
credit assessment of the notes on the indicative debt service
coverage ratio (DSCR) thresholds applicable to merchant projects
for the revenue-weighted exposure to the state-owned distribution
companies instead of the ones for fully contracted projects, while
the cash flow is evaluated based on the contracted prices.
The RG generates an average annual DSCR of 1.37x, with a minimum of
1.18x under Fitch's rating case, which is commensurate with a 'BB+'
rating.
KEY RATING DRIVERS
Experienced Contractors; Proven Technology: Operation Risk −
Midrange
AGEL RG1 consists of 930MW polycrystalline solar projects, a proven
technology with a long operating history. Fitch views the operation
of this kind of solar projects as straightforward. Solar modules
are provided by various internationally well-known suppliers. O&M
work is carried out by an affiliate company, Adani Infrastructure
Management Services Limited (AIMSL), under seven-year fixed-price
contracts with 2% annual price escalation.
Management has provided revised O&M contracts with a lower fixed
price. The revised O&M cost per MW is comparable to the O&M cost to
Fitch's rated Indian renewable universe. The operation risk
assessment is constrained to 'Midrange' because the operating cost
forecast is not validated by an independent technical advisor.
Generation Lower than Expectations: Revenue Risk (Volume) −
Midrange
The energy-yield forecast produced by third-party experts at the
initial rating exercise indicates an overall P50/one-year P90
spread of 7%, leading to a 'Midrange' volume risk assessment.
However, the portfolio has been producing lower than P90 forecasts
for the past three years, due mainly to lower irradiation,
according to management. An updated energy-yield forecast report is
under way and Fitch expects it to be released soon. Fitch will
reviews the volume risk assessment and the energy projection cut in
both Fitch's base case and rating case following the updated
report, if needed.
Generation was lower in the 12 months ended March 2022 (FY22),
mainly on lower irradiation, and stood at 1,892 million units or
about 6% lower than the P90 generation forecast of 2,006 million
units for the same period. The RG's grid availability for FY22
remained constant at 99.3%.
Long-Term Fixed-Price PPAs: Revenue Risk (Price) − Stronger
AGEL RG1 contracts 40% of its total capacity with NTPC and 17% with
SECI, with the remaining capacity contracted with various state
distribution companies under 25-year fixed-price PPAs, which
protect the portfolio from merchant price volatility. Fitch
assesses price risk as 'Stronger'.
Refinancing Risk Mitigated by Protective Structural Features: Debt
Structure - Midrange
The debt is a senior secured five-year bullet bond. The bullet
repayment structure presents significant refinancing risk. However,
the notes benefit from a senior debt restricted amortisation
account that requires issuers to pre-fund a proportion of debt by
maturity. The notes also require issuers to submit a refinancing
plan 12 months before maturity. The refinancing risk is also
mitigated by the remaining terms of the PPAs and the group's
established access to banking and capital markets.
Noteholders benefit from protective structural features to restrict
distributions. The debt has a six-month debt service reserve. All
cash will be trapped if the 12-month backward-looking DSCR drops to
below 1.35x or if the project life cover ratio drops to below
1.6x.
Distribution will also be restricted if there is a reduction of the
EBITDA mix from sovereign-backed off-takers to less than 55%, or if
aggregate cash flow available for debt service (CFADS) from
sovereign-backed off-takers over the remaining PPA terms is
insufficient to cover 75% of the outstanding debt.
PEER GROUP
Peer Analysis
AGEL RG1 is rated a two notches lower than Adani Green Energy
Limited Restricted Group 2's (AGEL RG2 , note rating:
BBB-/Negative) underlying credit profile of 'bbb'. AGEL RG2 has a
much tighter structure with largely amortising and longer-dated
debt, higher contribution from capacity contracted with
sovereign-owned entities (61%) than AGEL RG1, and a better
financial profile with a rating case DSCR of 1.45x. The 'BBB-'
rating with Negative Outlook on the senior notes of AGEL RG2
reflects the credit assessment of the Indian sovereign
(BBB-/Negative).
Azure Power Solar Energy Private Limited (Azure RG2, note rating:
BB/Stable) is also comparable with AGEL RG1. AGEL RG1 is rated a
notch higher than Azure RG2, even though AGEL RG1's rating case
DSCR of 1.37x is lower than that of Azure RG2. AGEL RG1's credit
profile is supported by a higher share of capacity contracted with
sovereign-owned entities (57% against 15%), which allows lower
rating thresholds for AGEL RG1. The debt term for Azure RG2 and
AGEL RG1 are both five-year bullet bonds. However, AGEL RG1
benefits from a stronger distribution lock-up test, and debt
service and capex reserve accounts.
AGEL RG1 can be also compared with Continuum Energy Levanter Pte.
Ltd. (Continuum RG1, note rating: BB+/Stable). Unlike AGEL RG1,
which is a pure solar portfolio, Continuum RG1's wind resources
make up 89% of assets. Still, Continuum RG1 has a much higher
rating case DSCR of 1.66x, which supports its rating. It has
partial debt amortisation and cash sweep in the bond document,
which will result in 53% of the senior notes' principal to be
refinanced. However, AGEL RG1's bullet structure requires about 91%
of the bond amount to be refinanced at the end of the five-year
period.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Average annual DSCR during refinance period drops to below
1.30x persistently.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Positive rating action appears unlikely because of the
uncertainty of the refinancing terms, structure and future
coverage profile upon the maturity of the notes.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Sovereigns, Public Finance
and Infrastructure issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of three notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.
TRANSACTION SUMMARY
AGEL RG1 is an RG consisting of three SPVs under Adani Green Energy
Limited, with total capacity of 930MW across India. The RG issued
five-year senior secured notes due 2024 to refinance its debt
CREDIT UPDATE
Plant availability of the AGEL RG1 portfolio for FY22 improved
marginally to 99.7% from 99.6% in FY21. AGEL RG1 performed about 6%
lower than P90 levels in terms of generation in FY22, due mainly to
lower radiation against about 4% lower than P90 levels in FY21.
About 75% of the total receivables as of March 2022 was within the
PPA credit period, and Fitch expects 15% to be cleared in 1HFY23
and the remaining 10% is disputed. The receivable days against all
state distribution companies have lengthened by about a month or
more, especially for Punjab (10% of the capacity) and Karnataka
(25% of the capacity).
The Kallur 40 MW plant is connected at the Kushtagi substation and
has been facing curtailment due to load congestion and overloading
of power transformer at the substation. A new 220 kilovolt
substation is planned near the existing Kushtagi substation as a
long-term solution. Fitch expects the new substation to be
commissioned by FY23.
FINANCIAL ANALYSIS
Fitch assumes the bullet principal repayment will be refinanced
upon maturity by fully amortising debt across the remaining PPA
terms at a higher refinancing interest rate of 12%.
Fitch's base case assumes a P50 energy production throughout the
forecast period until the end of the PPAs and a 5% production
haircut. Fitch also applies a four-month stress to the receivable
day assumption for state distribution company off-takers. Fitch's
base case generates an average annual DSCR of 1.52x, with a minimum
of 1.31x.
Fitch's rating case assumes a one-year P90 energy yield throughout
the forecast period, a 5% production haircut and 0.6% annual solar
degradation. Fitch also applies a 10% stress on the original
operating expenses and a four-month stress to the receivable day
assumption for state distribution company off-takers. The
assumptions generate an average annual DSCR of 1.37x, with a
minimum of 1.18x.
An updated energy-yield forecast report is under way and Fitch
expects it to be released soon. Fitch will review the volume risk
assessment and the energy projection cut in both Fitch's base case
and rating case following the updated report, if needed.
Our CFADS calculation is different from that in the notes' legal
documentation. Fitch's CFADS calculation includes funding of capex
for repowering and working capital movement, but does not include
opening cash available in the operating account, if not
distributed, at the start of the financial year.
SECURITY
The notes have a comprehensive security package which includes:
-- Pledge over 100% shares of each of the SPV issuers;
-- First ranking mortgage over all immovable assets in respect of
each project of each issuer;
-- First ranking mortgage over all fixed and current assets and
receivables in respect of each project of each issuer;
-- Charge/assignment of rights under all PPAs and other project
documents in respect of each project of each issuer.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
DEBT RATING PRIOR
---- ------ -----
Adani Green Energy
Limited Restricted
Group 1
Adani Green Energy LT BB+ Affirmed BB+
Limited Restricted
Group 1/bond/note/1 LT
AJAY PROTECH: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Ajay Protech Private Limited
59, Pratap Chamber 1st Floor
Nr. ST & Railway Crossing
Unjha, Gujarat 384170
Insolvency Commencement Date: June 6, 2022
Court: National Company Law Tribunal, Ahmedabad Bench, Court-II
Estimated date of closure of
insolvency resolution process: November 28, 2022
Insolvency professional: Prashant Agrawal
Interim Resolution
Professional: Prashant Agrawal
F-106, First Floor
Sumer Complex, Gautam Marg
C-Scheme, Jaipur 302001
Rajasthan
E-mail: ippagrawal@gmail.com
applcirp@gmail.com
Last date for
submission of claims: June 22, 2022
BALAJEE LOHA: CRISIL Keeps B+ Debt Rating in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Balajee Loha
Limited (BLL; part of the Balajee group) continues to be 'CRISIL
B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with BLL for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of BLL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on BLL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
BLL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
For arriving at the rating, CRISIL Ratings has combined the
business and financial risk profiles of BLL, Shree Hanuman Loha Ltd
(SHLL), and Balajee Structurals (India) Ltd (BSIL). This is because
these companies, collectively referred to as the Balajee group,
have a common management and fungible cash flow, and are in the
same business.
About the Group
Promoted by Raipur-based Agrawal family, the Balajee group
manufactures ingots and billets, steel long products, and
structural products. The group utilises ingots/billets manufactured
in-house for its rolling mills.
Incorporated in 1989, BLL has two units to manufacture
ingots/billets, thermo-mechanically treated bars, and steel
structural products such as channels, beams and angles.
Incorporated in 1989, SHLL has two units to manufacture
ingots/billets and steel structural products.
BSIL, set up in 2000, has two units to manufacture ingots/billets,
and steel structural products. All the manufacturing units are in
Raipur.
BIONEXT PHARMA: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Bionext Pharma Private Limited
Plot No. C-373, MIDC
TTC Industrial Area Pawane
Village Turbhe, Navi Mumbai
Maharashtra 400705
Insolvency Commencement Date: June 4, 2022
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: November 29, 2022
Insolvency professional: Ms. Sudha Bhushan
Interim Resolution
Professional: Ms. Sudha Bhushan
701, B Wing, Julian Alps
Bhakti Park, Near Imax
Wadala, Mumbai 400037
Maharashtra
E-mail: sudhag999@gmail.com
- and -
D-725/726, Neelkanth Business Park
Kirol Road, Vidya Vihar (West)
Mumbai 400086
E-mail: bionext.cirp@gmail.com
Last date for
submission of claims: June 19, 2022
BLACKSTONE LOGISTICS: CRISIL Keeps B- Rating in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Blackstone
Logistics Private Limited (BLPL) continues to be 'CRISIL B-/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 8.99 CRISIL B-/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with BLPL for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of BLPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on BLPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
BLPL continues to be 'CRISIL B-/Stable Issuer Not Cooperating'.
BLPL, incorporated in November 2010 and promoted by Mr Snehal
Patel, Mr Sagar Bhatewara, and Mr Hrishikesh Deshmukh, has a
warehouse at Khamgaon in Buldhana, Maharashtra, with capacity of
35,000 tonne. The warehouse has been leased to MSWC for 10 years.
CURA TECHNOLOGIES: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: M/s Cura Technologies Limited
Plot No. 12, Software Units Layout
Cyberabad, Hyderabad 500081
Insolvency Commencement Date: April 11, 2022
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: September 12, 2022
(180 days from commencement)
Insolvency professional: Maligi Madhusudhana Reddy
Interim Resolution
Professional: Maligi Madhusudhana Reddy
MMR Lion Corp, 4th floor
HSR Eden, Beside Cream Stone
Road No. 2, Banjara Hills
Hyderabad, Telangana 500034
E-mail: mmreddyandco@gmail.com
irpcuratechnologies@gmail.com
Last date for
submission of claims: April 25, 2022
FAIRWEALTH HOUSING: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Fairwealth Housing Private Limited
651-652, Udyog Vihar
Phase-V, Gurgaon
Haryana 122001
Insolvency Commencement Date: June 1, 2022
Court: National Company Law Tribunal, Panchkula Bench
Estimated date of closure of
insolvency resolution process: November 27, 2022
(180 days from commencement)
Insolvency professional: Mr. Khushvinder Singhal
Interim Resolution
Professional: Mr. Khushvinder Singhal
House No. 399, Sector 12-A
Panchkula, Haryana 134112
E-mail: kvsinghal@gmail.com
Mobile: +919914030030
- and -
SCO-818, 1st Floor
NAC Manimajra
Chandigarh 160101
E-mail: fairwealth.cirp@gmail.com
Mobile: +919875921491
Classes of creditors: Homebuyers/Allotees
Insolvency
Professionals
Representative of
Creditors in a class: Mr. Man Mohan Vij
C318, Sushant LokI
Gurgaon, Haryana 122009
E-mail: mm_vij@yahoo.co.in
Mr. Arvind Mittal
H. No. 1900, Phase-3
J J Colony, Madanpur Khaddar
Sarita Vihar, New Delhi 110076
E-mail: arvindmittal81@yahoo.in
Mr. Sumit Sharma
C-3/69 A, Keshav Puram
North West, Delhi 110035
E-mail: sumit@vptp.in
Last date for
submission of claims: June 15, 2022
G. K. E. MEDICAL: CRISIL Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of G. K. E.
Medical Private Limited (GKE) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with GKE for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of GKE, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on GKE
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
GKE continues to be 'CRISIL D Issuer Not Cooperating'.
GKE was set up as a partnership firm in 1986 and was reconstituted
as a private limited company in 2009. The company distributes
pharmaceutical formulations in the form of tablets, syrups, and
injectibles in Kolkata (primary revenue contributor) and other
districts of West Bengal.
IL&FS LTD: NCLAT Orders Board to Pay Lenders on a Pro-Rata Basis
----------------------------------------------------------------
Business Standard reports that the National Company Law Appellate
Tribunal (NCLAT) has directed the new board of Infrastructure
Leasing & Financial Services (IL&FS) to pay lenders on a pro-rata
basis first as opposed to the normal course of payment prescribed
under Section 53 (distribution of assets) of the Insolvency and
Bankruptcy Code (IBC). This will be done as part of the interim
distribution.
"We are of the view that IL&FS and its entities may take all steps
to complete the resolution process as per the resolution framework
and submit their application for approval before the NCLT by June
30, 2022," the NCLAT said.
Business Standard relates that Raj Bhalla, partner at law firm MV
Kini, explained shareholders should not be paid by the procedure
under Section 53 of the IBC because this would be against the
public interest. "The investment was made by its shareholders: Life
Insurance Corporation of India, IL&FS Employees Welfare Trust,
Central Bank of India, and State Bank of India. They have public
money. The NCLAT also directed that the said distribution shall
abide by the final resolution of IL&FS entities according to the
resolution framework. However, a few entities have been kept out,"
the report quotes Bhalla as saying.
As of Dec. 31, 2021, 191 IL&FS Group entities have been resolved
(basis filings done with various courts and tribunals) by way of
sale, liquidation/closure or transfer/proposed transfer to the
Infrastructure Investment Trust (InvIT) set up in accordance with
the Securities and Exchange Board of India (Infrastructure
Investment Trust) Regulations, 2014 (InvIT Regulations), the report
discloses. "As of December 7, 2021, approximately INR16,742 crore
of cash was available with various IL & FS Group entities," the
NCLAT said.
The interim distribution will be for INR16,361 crore -- INR11,296
crore in cash and INR5,065 crore in InvIT units, the report notes.
About IL&FS
Infrastructure Leasing & Financial Services Limited (IL&FS) --
https://www.ilfsindia.com/ -- is an infrastructure development and
finance company based in India. It focuses on the development and
commercialization of infrastructure projects, and creation of value
added financial services. The company operates in Financial
Services, Infrastructure Services, and Others segments.
The Indian government, in October 2018, stepped in to take control
of crisis-ridden IL&FS by moving the National Company Law Tribunal
(NCLT) to supersede and reconstitute the board of the firm which
has defaulted on a series of its debt payments, according to Indian
Express. This was said to be an attempt to restore the confidence
of financial markets in the credibility and solvency of the
infrastructure financing and development group.
J.P. RICE: CRISIL Keeps B Debt Ratings in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of J.P. Rice and
Foods Private Limited (JPR) continue to be 'CRISIL B/Stable Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Inventory Funding 5 CRISIL B/Stable (Issuer Not
Facility Cooperating)
Working Capital 10 CRISIL B/Stable (Issuer Not
Facility Cooperating)
CRISIL Ratings has been consistently following up with JPR for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of JPR, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on JPR
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
JPR continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Set up in 2009, J.P.Rice Exports Private Limited, (JPR) is engaged
in milling and processing of paddy into rice. It has an installed
paddy milling capacity of 36000 MT. Its rice mill is located in
Alipur in Delhi. The company is promoted by Mr. Bharat Bhushan
Arora.
JAIPURIA BUILDCON: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Jaipuria Buildcon Private Limited
16, Shankar Vihar
Delhi 110092
Insolvency Commencement Date: June 2, 2022
Court: National Company Law Tribunal, Ghaziabad Bench
Estimated date of closure of
insolvency resolution process: November 29, 2022
Insolvency professional: Vekas Kumar Garg
Interim Resolution
Professional: Vekas Kumar Garg
D-214, Ground Floor
Ramprastha, Ghaziabad
UP 201011
E-mail: vikasgarg_k@outlook.com
irp.jaipuriabuildconcirp@
gmail.com
Classes of creditors: Home Buyers
Insolvency
Professionals
Representative of
Creditors in a class: Parveen Kumar Adlakha
Jitender Arora
Kunwarpreet Singh
Last date for
submission of claims: June 16, 2022
KALAISELVI MODERN: CRISIL Keeps B+ Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Kalaiselvi
Modern Rice Mill (KMRM) continue to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10.5 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Cash 1.5 CRISIL B+/Stable (Issuer Not
Credit Limit Cooperating)
CRISIL Ratings has been consistently following up with KMRM for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of KMRM, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KMRM
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
KMRM continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Set up in 2007, as a proprietorship firm by Mr. Jayaraman, KMRM is
engaged in the processing of paddy into rice. The firm has a
milling unit in located at Dindugal (Tamil Nadu) with an installed
capacity of 5 tonnes per hour (TPH).
M. P. K. ISPAT: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of M. P. K.
Ispat India Private Limited (MPKI) continue to be 'CRISIL D/CRISIL
D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 5 CRISIL D (Issuer Not
Cooperating)
Standby Line 1.5 CRISIL D (Issuer Not
of Credit Cooperating)
Term Loan 6.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with MPKI for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MPKI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MPKI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MPKI continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
For arriving at the ratings, CRISIL Ratings has combined the
business and financial risk profiles of MPKI, MPK Metals Pvt Ltd
(MPKM), and MPK Steels India Pvt Ltd (MPKS). This is because the
three companies, together referred to as the MPK group, have common
ownership and management, and MPKM and MPKS have the same product
profile and sell under a common brand. MPKI has been set up in
order to backward integrate into billet manufacturing for
supporting the operations of the other two companies and has also
received corporate guarantees from them for its bank funding.
About the Group
MPKS was set up as a private limited concern in 2005. It
manufactures structural products, including thermo-mechanically
treated (TMT) bars, channels, angles, and joints, at its
manufacturing facility in Jaipur. The company markets the products
under its own brand, MPK. The operations of the company are managed
by Mr. Santosh Kumar Upadhyay and his son, Mr. Manoj Upadhyay.
MPKM was set up as a private limited concern in 2009 and
manufactures structural products including TMT bars, channels,
angles, and joints at its manufacturing facility in Jaipur and
markets the same under its MPK brand. The operations of the company
are managed by Mr. Santosh Kumar Upadhyay and Mr. Manoj Upadhyay.
MPKI was set up as a private limited concern in 2010 and started
operations in 2012-13 (refers to financial year, April 1 to
March 31) with 2013-14 being its first full year of operations. The
company has been set up as a backward integration unit of the group
to manufacture steel billets and ingots for captive consumption in
MPKS and MPKM. The company has its plant in Bagru (Jaipur) and is
managed by Mr. Santosh Kumar Upadhyay and Mr. Manoj Upadhyay.
M. P. K. METALS: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of M. P. K.
Metals Private Limited (MPKM) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.8 CRISIL D (Issuer Not
Cooperating)
Standby Line 0.22 CRISIL D (Issuer Not
of Credit Cooperating)
Term Loan 0.98 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with MPKM for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MPKM, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MPKM
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MPKM continues to be 'CRISIL D Issuer Not Cooperating'.
For arriving at the ratings, CRISIL Ratings has combined the
business and financial risk profiles of MPKI, MPK Metals Pvt Ltd
(MPKM), and MPK Steels India Pvt Ltd (MPKM). This is because the
three companies, together referred to as the MPK group, have common
ownership and management, and MPKM and MPKM have the same product
profile and sell under a common brand. MPKI has been set up in
order to backward integrate into billet manufacturing for
supporting the operations of the other two companies and has also
received corporate guarantees from them for its bank funding.
MPKS was set up as a private limited concern in 2005. It
manufactures structural products, including thermo-mechanically
treated (TMT) bars, channels, angles, and joints, at its
manufacturing facility in Jaipur. The company markets the products
under its own brand, MPK. The operations of the company are managed
by Mr. Santosh Kumar Upadhyay and his son, Mr. Manoj Upadhyay.
MPKM was set up as a private limited concern in 2009 and
manufactures structural products including TMT bars, channels,
angles, and joints at its manufacturing facility in Jaipur and
markets the same under its MPK brand. The operations of the company
are managed by Mr. Santosh Kumar Upadhyay and Mr. Manoj Upadhyay.
MPKI was set up as a private limited concern in 2010 and started
operations in 2012-13 (refers to financial year, April 1 to March
31) with 2013-14 being its first full year of operations. The
company has been set up as a backward integration unit of the group
to manufacture steel billets and ingots for captive consumption in
MPKS and MPKM. The company has its plant in Bagru (Jaipur) and is
managed by Mr. Santosh Kumar Upadhyay and Mr. Manoj Upadhyay.
MAA BANBHORI: CRISIL Lowers Rating on INR8cr Loans to B
-------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of Maa
Banbhori International (MBI) to 'CRISIL B/Stable Issuer Not
Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Proposed Fund- 1 CRISIL B/Stable (ISSUER NOT
Based Bank Limits COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Term Loan 5 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with MBI for
obtaining information through letters and emails dated March 14,
2022 and May 24, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MBI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MBI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MBI Revised to 'CRISIL B/Stable Issuer Not Cooperating' from
'CRISIL BB-/Stable Issuer Not Cooperating'.
MBI was established as partnership firm in February 2017 by Mr
Ashish Goel and Mr Sarin Goel. It manufactures all types of
blankets, carpets, bed sheets, and other textile goods at its
facility in Panipat. The firm commenced operations from July 2018.
MKHS REALTY LLP: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: MKHS Realty LLP
Narayanpur, P.O. Gopalpur
Kolkata, West Bengal 700136
Insolvency Commencement Date: May 25, 2022
Court: National Company Law Tribunal, Kolkata Bench I
Estimated date of closure of
insolvency resolution process: November 20, 2022
Insolvency professional: Manisha Biyani
Interim Resolution
Professional: Manisha Biyani
Mangalam, North Office Para
Doranda, Ranchi
Opposite North Point School
Ranchi, Jharkhand 834002
E-mail: mkvrch@gmail.com
- and -
CFB F-1, 1st Floor
Paridhan Garment Park, L9
Canal South Road
Kolkata, West Bengal 700015
E-mail: cirp.mkhsrealty@gmail.com
Classes of creditors: Applicable
Insolvency
Professionals
Representative of
Creditors in a class: Ms. Purvee Anoop Mehrotra
Mr. Hari Ram Aggrwal
Mr. Sanjay Mehta
Last date for
submission of claims: June 8, 2022
MULTI FOOD: CRISIL Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Multi Food
Products Private Limited (MFPPL) continue to be 'CRISIL B+/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4 CRISIL B+/Stable (Issuer Not
Cooperating)
Term Loan 2.48 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with MFPPL for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MFPPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MFPPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MFPPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
MFPPL, established on January 4, 2006 is engaged in processing i.e.
milling, polishing and sorting of basmati and non-basmati rice. The
Ahmedabad-based company has been promoted by Mr Haresh Kumar
Khanchandani, Mr Mukesh Khanchandani and MrsSarita Khanchandani.
MUSADDILAL PROPERTIES: CRISIL Keeps B Rating in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Musaddilal
Properties Private Limited (MPPL) continues to be 'CRISIL B/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 44 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with MPPL for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MPPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MPPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MPPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
MPPL was set up in 2013. The company owns a warehouse with an area
of 250,858 square feet in Pune, which is leased to ITC.
N.S.P. TEX: CRISIL Keeps B Debt Ratings in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of N.S.P. Tex
(NSP) continue to be 'CRISIL B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 9 CRISIL B/Stable (Issuer Not
Cooperating)
Export Packing 12.5 CRISIL B/Stable (Issuer Not
Credit Cooperating)
Rupee Term Loan 2.5 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with NSP for
obtaining information through letters and emails dated March 14,
2022 and May 24, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of NSP, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on NSP
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
NSP continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
NSP, based in Tirupur, Tamil Nadu, was established in 1989 and is
managed by Mr. P Kanagaraj. The firm manufactures and exports
readymade garments.
* Sustained improvement in financial risk profile with interest
coverage of over 1.8 times
Downward factors
* Decline in profitability or stretch in working capital cycle,
leading to cash accrual below INR1 crore
* Deterioration in the financial risk profile
NIPL was set up at Kanagayam (Tamil Nadu) in 1992, by the promoter,
Mr M Venkatachalapathy. The company manufactures welding wires used
in industries such as automobiles, infrastructure, power equipment,
railways, and mining.
NOUVEAUX INDUSTRIES: CRISIL Reaffirms B+ Rating on INR5cr Loan
--------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on the
long-term bank facilities of Nouveaux Industries Private Limited
(NIPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B+/Stable (Reaffirmed)
Long Term Loan 1.8 CRISIL B+/Stable (Reaffirmed)
Overdraft Facility 0.5 CRISIL B+/Stable (Reaffirmed)
Term Loan 3 CRISIL B+/Stable (Reaffirmed)
The rating continues to reflect the extensive experience of the
promoter in the steel wire manufacturing segment. This strength is
partially offset by NIPL's modest scale of operations, weak
financial risk profile, and exposure to intense competition and
fluctuations in raw material prices.
Analytical Approach
Unsecured loans (USL) treated as 75% equity and 25% debt as the
company has retained the USL in the business.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations, amidst exposure to risks arising from
intense competition and volatility in steel prices: Exposure to
intense competition and volatile raw material prices may continue
to constrain scalability, pricing power, and profitability. Revenue
and operating margin were modest at INR61.26 crore and 7.9%,
respectively, in FY2021. In FY2022, the company has reported about
INR75 crore revenues and about 7.1% profitability.
* Weak financial risk profile: The financial risk profile of the
company is weak as reflected by the leveraged capital structure and
moderate debt protection metrics. The company has a gearing and net
worth of about 2.34 times and INR10.72 crore, respectively as on
March 31, 2021. As on March 31, 2022, it is estimated that the
gearing and net worth are 2.10 times and INR11.14 crore,
respectively. The debt protection metrics of the company moderate
as reflected by the interest coverage and net cash accruals to
total debt of 1.41 times and 0.05 times, respectively in FY2021 and
1.48 times and 0.07 times, respectively in FY2022.
Strength:
* Extensive experience of the promoter: Benefits from the
two-decade-long experience of the promoter, in the steel wire
manufacturing business, his strong understanding of local market
dynamics, and healthy relationships with customers and suppliers,
should continue to support the business.
Liquidity: Stretched
Bank limit utilisation is high at around 95 percent for the past
thirteen months ended March 2022. Cash accruals are expected to be
around INR1.6-2.3 crore which are sufficient against term debt
obligation of INR1.6-1.8 crore over the medium term. The promoters
are likely to extend support in the form of equity and unsecured
loans to meet its working capital requirements and repayment
obligations.
Outlook: Stable
CRISIL Ratings believes NIPL will continue to benefit from the
extensive experience of its promoter in the steel wire
manufacturing business.
Rating Sensitivity factors
Upward factors
* Stable revenue and better operating margin, leading to higher
cash accruals
* Sustained improvement in financial risk profile with interest
coverage of over 1.8 times
Downward factors
* Decline in profitability or stretch in working capital cycle,
leading to cash accrual below INR1 crore
* Deterioration in the financial risk profile
NIPL was set up at Kanagayam (Tamil Nadu) in 1992, by the promoter,
Mr M Venkatachalapathy. The company manufactures welding wires used
in industries such as automobiles, infrastructure, power equipment,
railways, and mining.
PEREGRINE PHOSPHATE: CRISIL Keeps B Rating in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Peregrine
Phosphate Private Limited (PPPL) continues to be 'CRISIL B/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PPPL for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of PPPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PPPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PPPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Incorporated in 2013, PPPL is a Bengaluru-based company engaged in
trading of chemicals and fertilisers, pesticides and plant
nutritional and bio organic products. The operations are managed by
Mr. Rahul Nilkanth.
PLAZA TEX: CRISIL Keeps B+ Debt Rating in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Plaza Tex
(India) Private Limited (PTIPL) continues to be 'CRISIL B+/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PTIPL for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of PTIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PTIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PTIPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
PTIPL was incorporated in 2001, promoted by Rajasthan-based Mr.
Sunil Soni and his brother Mr. Anil Soni. The company manufactures
polyester viscose and polyester staple fibre fabrics at its plant
in Bhilwara (Rajasthan).
RAM MEHER: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Ram Meher
Infradevelopers Private Limited (RMIPL) continue to be 'CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft Facility 1.4 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 5.1 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with RMIPL for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of RMIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RMIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RMIPL continues to be 'CRISIL D Issuer Not Cooperating'.
RMIPL was incorporated in 2009, promoted by Mr Ram Vinod Singh, Mr
Ravi Singhal, Mr Girish Chand Goyal, and Mr Nitish Goyal, based in
Agra. The company undertakes residential real estate development in
this city.
RED ROSE: CRISIL Keeps B Debt Ratings in Not Cooperating
--------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Red Rose
Textiles Industries Private Limited (RTIPL) continue to be 'CRISIL
B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7.25 CRISIL B/Stable (Issuer Not
Cooperating)
Cash Credit 2 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 0.75 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with RTIPL for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of RTIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RTIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RTIPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Incorporated in 1991, RTIPL is a Mumbai based company promoted by
Mr. Jayantilal Parmar, Mr. Ramesh Parmar, Kiran Parmar, Kamal
Parmar and Hasmukh Parmar. The company is mainly engaged in dyeing
of cotton yarn with a capacity of 250 tpm.
RENEW POWER 4: Fitch Affirms 'BB-' Rating on USD585MM Sec. Notes
----------------------------------------------------------------
Fitch Ratings has affirmed India-based ReNew Power Restricted Group
4's (ReNew RG4) USD585 million senior secured notes due 2028 at
'BB-'. The Outlook is Stable.
RATING RATIONALE
The rating on the notes reflects the credit strengths and
weaknesses of a restricted group of operating entities. The
restricted group will benefit from parent ReNew Power Private
Limited's (ReNew Power, BB-/Stable) access to funding to refinance
its US dollar bonds, supported by a full-tenor unconditional
guarantee from the parent. ReNew Power is one of the largest
renewable-energy independent power producers in India with total
operating capacity of about 7GW and around 3GW of capacity under
construction.
The restricted group includes 10 renewable projects of ReNew Power
with a total capacity of 803.1MW spread across seven states in
India. The portfolio has nine wind assets (753.1MW) and one solar
project (50MW). All of the assets have been operating for more than
four years, other than one 300MW wind project, which started
operations in early 2021. The 300MW project is contracted with
sovereign-owned Solar Energy Corporation of India (SECI) while the
rest are contracted with weaker state-owned distribution
companies.
KEY RATING DRIVERS
Proven Technology, Lack of Maintenance Reserve - Operation Risk:
Midrange
The technologies deployed in ReNew RG4's wind and solar projects
are considered proven. Most of the wind turbines are procured from
some of the world's largest manufacturers while the solar modules
are sourced from an internationally well-known supplier. Operation
and maintenance (O&M) for most of the wind projects is carried out
by the original equipment manufacturers under 10-year contracts.
The O&M for three wind projects - 28MW, 60MW and 92MW - was taken
over by an affiliate company, ReNew Services Private Limited, at a
fixed price, with 4%-5% annual price escalation, for shorter but
extendable tenors. The O&M for the solar project is also carried
out by the affiliate under a five-year fixed-price contract, with
5% annual price escalation. The operation risk assessment is
constrained at 'Midrange' as the operating cost forecast is not
validated by an independent technical advisor and the bond
indenture does not have a maintenance reserve account.
Wide Forecast Spread, Adequate Operating Performance - Revenue Risk
(Volume): Weaker
The energy yield forecast produced by third-party experts indicates
an overall P50/one-year P90 spread of 18%, leading to a 'Weaker'
assessment for volume risk. The portfolio has a capacity-weighted
average record of four years as all assets have been operating for
more than four years, except the recently commissioned 300MW wind
project. Actual load factors recorded by the portfolio in the last
few years were moderately volatile. Hence, Fitch applies a lower
haircut of 7% on the volume forecast in Fitch's base and rating
cases. The curtailment risk is limited in India due to the
"must-run" status of renewable projects.
Fixed Long-Term Prices, Minimal Renewal Risk - Revenue Risk
(Price): Midrange
ReNew RG4 contracts 63% of its total capacity with state-owned
distribution companies and the balance with SECI under long-term
fixed-price power-purchase agreements (PPA), which protects the
portfolio from merchant-price volatility. These PPAs have a
capacity-weighted residual life of about 21 years.
The only contract with a shorter fixed-price tenor of 13 years,
with a remaining life of four years, is a 28MW wind project signed
with Maharashtra's state-owned distribution company. However, Fitch
expects management to recontract the asset as it will have residual
asset life of about 12 years at the end of the PPA. Fitch
constrains the price risk assessment at 'Midrange' in light of the
low but certain merchant-price exposure due to this asset.
Foreign-Currency Exposure, Manageable Refinancing Risk - Debt
Structure: Weaker
Management has hedged the principal payment of the US dollar bonds
using options, lowering the all-in cost to about 6.5%, but leaving
exposure to rupee depreciation until the contracted strike price,
resulting in Fitch's 'Weaker' debt structure assessment. Fitch's
rating case assumes a 2% annual rupee depreciation. A weaker rupee
than Fitch expects will damage the underlying credit profile,
although the bond's credit rating will continue to benefit from the
parent's guarantee. The hedging is done till mid-2024 with mid-term
rollover planned for bonds that may still be outstanding.
Noteholders are protected by ReNew RG4's ring-fenced structure and
covenants. There is a standard cash distribution waterfall and a
lock-up test at a backward-looking 1.3x interest-service coverage
ratio for cash outflow. The notes are fixed-rate. The restricted
group will not maintain a debt-service reserve or a major
maintenance reserve account, but this will be partly offset by the
excess cash it must retain in the last year of the notes' tenor.
Refinancing risk is mitigated by the guarantee and ReNew RG4's
access to banks and capital markets, with support from the PPAs,
which extend beyond the notes' maturity.
PEER GROUP
ReNew RG4's closest peer is India Green Energy Holdings (IGEH, US
dollar notes: BB-/Stable). The credit assessment of both restricted
groups is driven by that of their parent, ReNew Power.
IGEH has higher contribution from solar capacity at around 33%.
However, its counterparty mix is slightly weaker with 77% of its
capacity exposed to weak state-owned distribution companies and the
balance signed with commercial and industrial customers, against
37% of ReNew RG4's capacity that is contracted with SECI.
ReNew RG4's financial profile benefits from the benign
interest-rate environment while IGEH's financial profile gets
significant uplift from committed interest income from the parent
on inter-company loans extended by the restricted group. As a
result, IGEH's underlying credit profile is much stronger than that
of ReNew RG4. However, IGEH will also not be able to fully amortise
its refinanced debt over the refinancing period if ReNew Power does
not repay the initial parent guarantor loan under Fitch's rating
case.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- A downgrade of the parent guarantor.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- An upgrade of the parent guarantor.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Sovereigns, Public Finance
and Infrastructure issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of three notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.
TRANSACTION SUMMARY
The US dollar bonds are co-issued by 10 operating entities that are
owned by ReNew Power. The due and punctual payment of all amounts
payable by each co-issuer under the US dollar notes is fully and
unconditionally guaranteed on a senior basis by each of the other
co-issuers, and fully guaranteed on a senior basis by ReNew Power
Private Limited. The co-issuers used the proceeds mostly to repay
their then-existing indebtedness.
The notes are issued under External Commercial Borrowings (ECBs)
guidelines issued by the central bank of India.
CREDIT UPDATE
The ReNew RG4 portfolio's electricity generation improved
meaningfully in the financial year ended March 2022 (FY22) from
FY21, but remained below that in FY20, excluding the 300MW SECI 3,
which started operations in February 2021. The improvement was
supported by better electricity generation across various wind
assets, aside from the 60MW Sattegiri plant.
The Sattegiri asset faced O&M issues as two wind turbine generators
were affected by lightning damage to the blades. However, the wind
turbines are rectified now, according to management. The 100MW
Nimbagallu project continued to face curtailment from Andhra
Pradesh's state utility. However, Fitch expects off-take to recover
in light of recent judiciary order from the high court of Andhra
Pradesh.
The portfolio's receivable position improved by the end of FY22
from FY21 following liquidity support to the state-owned
distribution companies from the central government of India, and
better cash collection by the distribution utilities as the country
recovered from the Covid-19 pandemic.
FINANCIAL ANALYSIS
Fitch's forecast assumes that the outstanding US dollar bond at
maturity will be refinanced by another debt that will amortise
across the remaining PPA terms or the projects' useful life,
whichever is longer. Fitch does not rate the state-owned
distribution companies that purchase power from some projects of
the restricted group. While exposure to multiple counterparties
mitigates the risk, the counterparties have weak credit profiles
and histories of payment delays.
Fitch believes that it is prudent for such projects to meet a
higher threshold to achieve the same rating as other projects with
strong counterparties, all else being equal. Hence, Fitch bases the
credit assessment of the notes on the indicative debt service
coverage ratio thresholds applicable to merchant projects for the
share of exposure to state-owned distribution companies instead of
the ones for fully contracted projects, while the cash flows are
evaluated based on the contracted prices.
Fitch's base case assumes P50 generation, a 7% production haircut
and an 11% refinancing interest rate, which results in an average
annual debt-service coverage ratio (DSCR) of 2.97x, 1.70x and 1.20x
over the bond life, portfolio life and refinancing period,
respectively. Fitch's rating case assumes one-year P90 generation
and a 7% production haircut. Fitch also applies a 15% stress on
management's operating expense forecast and an 11% refinancing
interest rate. Fitch's rating case results in an average annual
DSCR of 2.35x, 1.29x and 0.85x over the bond life, portfolio life
and refinancing period, respectively.
The restricted group will benefit from the parent's access to
funding for refinancing its US dollar bond supported by a
full-tenor unconditional guarantee from ReNew Power.
SECURITY
The US dollar bonds issued by each co-issuer benefit from a
standard security package, including a charge over certain immobile
and movable assets of the co-issuer, and a share pledge over a 51%
stake in the operating entity.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
DEBT RATING PRIOR
---- ------ -----
ReNew Power Restricted Group 4
ReNew Power Restricted LT BB- Affirmed BB-
Group 4/secured/1 LT
SHITAL FIBERS: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shital Fibers
Limited (SFL) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 80 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 39 CRISIL D (Issuer Not
Cooperating)
Rupee Term Loan 11 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SFL for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SFL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SFL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SFL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
SFL was formed in 1992, by the promoter, Mr Shital Vij. The firm
manufactures acrylic mink blankets, and caters to domestic and
overseas markets. Manufacturing units are at Jalandhar, Punjab.
SS MODERN: CRISIL Keeps B+ Debt Rating in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of SS Modern Rice
Industry (SMRI) continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SMRI for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SMRI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SMRI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SMRI continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Set up in 2014, as a partnership firm, SMRI is engaged in milling
and processing of paddy into rice, rice bran, broken rice and husk.
SMRI is promoted by Mr. K. Mallikarjuna Naidu.
SUMITRA SONS: CRISIL Keeps B Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sumitra Sons
continue to be 'CRISIL B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Inventory Funding 2.5 CRISIL B/Stable (Issuer Not
Facility Cooperating)
Inventory Funding 5.5 CRISIL B/Stable (Issuer Not
Facility Cooperating)
Proposed Long Term 2 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with Sumitra Sons
for obtaining information through letters and emails dated March
14, 2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of Sumitra Sons, which restricts
CRISIL Ratings' ability to take a forward looking view on the
entity's credit quality. CRISIL Ratings believes that rating action
on Sumitra Sons is consistent with 'Assessing Information Adequacy
Risk'. Based on the last available information, the ratings on bank
facilities of Sumitra Sons continues to be 'CRISIL B/Stable Issuer
Not Cooperating'.
Sumitra Sons was set up as a partnership firm in 2009 by the Singh
family. The firm is an authorised exclusive dealer of Hero Motocorp
in Shahjahanpur with two showrooms and two service stations. The
partners of the firm are Mr. Balvir Singh, Mr. Jagjeet Singh, Mr.
Simarjeet Singh, and Ms. Jasmin Kaur.
SURYA NARAYAN: CRISIL Keeps B- Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Surya Narayan
Agro Private Limited (SNAPL) continue to be 'CRISIL B-/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL B-/Stable (Issuer Not
Cooperating)
Proposed Long Term 0.5 CRISIL B-/Stable (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 3 CRISIL B-/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SNAPL for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SNAPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SNAPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SNAPL continues to be 'CRISIL B-/Stable Issuer Not Cooperating'.
Incorporated in 2014, Surya Narayan Agro Private Limited (SNAPL),
has set up 8 ton per hour (TPH) non-basmati rice mill unit at
Burdwan,West Bengal having an estimated cost of around Rs.7.19
crores (including working capital margin). The project was funded
by term loan of Rs.3 crores and remaining through funding support
from promoters in the form of equity or unsecured loan. When the
case was discussed in the committee last time the company was in
the process for contracting the necessary funding support from the
bank, but the promoters had already infused their part equity
capital in the company. SNAPL's day to day operations are looked
after by its promoter director Mr. Subhash Ghosh.
THREE TEE: CRISIL Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Three Tee
Auto Logistics Private Limited (TTAL) continue to be 'CRISIL
B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft Facility 0.8 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Long Term 4.0 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 8.2 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with TTAL for
obtaining information through letters and emails dated March 14,
2022 and May 24, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of TTAL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on TTAL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
TTAL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
TTAL was incorporated in 2011 by Mr Dinesh Kumar and Mr Ashwini
Kumar Vaishnaw. The company offers warehousing and logistics
services along with additional services like assembling of parts,
and has 13-14 warehouses across India.
VEERGANAPATHI STEELS: CRISIL Keeps D Rating in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Shri
Veerganapathi Steels Private Limited (SVSPL) continues to be
'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SVSPL for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SVSPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SVSPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SVSPL continues to be 'CRISIL D Issuer Not Cooperating'.
SVSPL was established in 1998 and trades in steel products such as
channels, pipes, angles, plates, thermo-mechanically treated bars,
and round/square bars.
VENKATESHWARA FARMS: CRISIL Keeps B Rating in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sri
Venkateshwara Farms (SVF) continue to be 'CRISIL B/Stable Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.5 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 3.5 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with SVF for
obtaining information through letters and emails dated March 28,
2022 and May 24, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SVF, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SVF
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SVF continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
SVF was incorporated in 2004, as a partnership firm by Mr K Jeevan
Reddy, Mr K Mohan Reddy, Mr K Ramachandra Reddy and Mr K
Satyanarayana Reddy. The firm runs the poultry business at
Hyderabad, with an yearly capacity of 2,40,000 laying birds.
VIJETHA SUPER: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Vijetha Super
Market (VSM) continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft Facility 2.5 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 3.5 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 2.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with VSM for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of VSM, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VSM
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
VSM continues to be 'CRISIL D Issuer Not Cooperating'.
Set up in December, 2003 as a partnership firm, VSM owns and
operates a three star hotel in Srikakulam, in addition to a bar and
restaurant. The firm also operates a super market in the same
property.
ZEDSON AGRO: CRISIL Keeps B Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Zedson Agro
Private Limited (ZAPL) continue to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.25 CRISIL B/Stable (Issuer Not
Cooperating)
Long Term Loan 4.3 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 0.95 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with ZAPL for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of ZAPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ZAPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
ZAPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
ZAPL was incorporated in October 2014 and processes wheat seeds at
the facility at Surendranagar, Gujarat. The operations are managed
by Mr Devendrabhai who has over ten years of experience through
another group concern, Aghara Agriculture, which is a partnership
firm, involved in similar activities. The company has started its
operations from February 2015 and has recently set up grinding mill
to make flour from wheat.
=================
I N D O N E S I A
=================
ALAM SUTERA: Fitch Affirms LongTerm IDR at 'B-', Outlook Stable
---------------------------------------------------------------
Fitch Ratings has affirmed Indonesia-based homebuilder PT Alam
Sutera Realty Tbk's (ASRI) Issuer Default Rating (IDR) at 'B-'. The
Outlook is Stable.
The affirmation and Stable Outlook reflect Fitch's expectation that
ASRI's presales will continue to increase steadily and its free
cash flows (FCF) remain healthy, even after the step-up in coupon
rates on its US dollar notes due in 2024 and 2025. Fitch expects
the company's liquidity to remain steady in the next 12-18 months,
given its cash balance of IDR1.3 trillion at March 31 2022 and
Fitch's FCF projection of around IDR500 billion for 2022.
ASRI will need to demonstrate its ability to repay its US dollar
notes in a timely manner before Fitch considers a rating upgrade.
KEY RATING DRIVERS
Steady Growth in Presales: ASRI's rating is supported by its
presales of over IDR3 trillion, which Fitch expects to increase by
5%-6% a year over the next two years. Presales will be driven by
healthy demand for affordable landed homes in its Suvarna Sutera
township, where prices of IDR1.5 billion-2 billion per unit cater
to first-time homebuyers. Presales in its Alam Sutera township
appeal to upgraders and should also remain steady, particularly if
prices of key export commodities like coal and palm oil remain
healthy. Presales at Alam Sutera township rose by 15% yoy in 1Q22.
Fitch expects ASRI to record higher presales in 2H22 as it has
plans to launch new clusters in both townships and a new tower
adjacent to an existing apartment project later this year. This
should offset the modest performance in 1Q22, when the company
recorded presales of IDR569 billion, representing 18% of Fitch's
2022 forecasts.
Execution Risk on Asset Sales: Fitch has not factored in sales of
ASRI's pledged assets in Fitch's rating case. The sale of its
office tower project, The Tower, remains challenging, with only 15%
of the strata units sold since its launch in 2013. However, ASRI
has been able to secure a long-term lease for about 60% of the
remaining space with a local bank this year, which may improve the
sales outlook for the asset. The company has not sold other pledged
assets to-date.
Rising Inflation, Interest Rates: Accelerating inflation and rising
interest rates could temper ASRI's FCF improvement over the next 12
to 18 months. Fitch forecasts construction costs to rise by 10% in
2022 and another 14% in 2023, driven by rising steel prices. Fitch
believes ASRI will not be able to pass on the full cost increase to
home buyers without affecting demand, and expect EBITDA margins to
narrow by a few percentage points in the next two years.
Around 60% of ASRI's total presales are funded by mortgage loans.
Rising interest rates could impede presales growth, especially in
the Suvarna Sutera township, where over 80% of the sales were
mortgage-funded, though this may be mitigated by some local banks
offering fixed rates for a longer term. The impact would also be
partly counterbalanced by home buyers trading down to more
affordable options as well as ASRI's ability to shift product
launches between its two townships to cater to changing demand.
Moderating Free Cash Flows: Fitch forecasts ASRI to generate IDR480
billion-600 billion of FCF a year over 2022 and 2023, down from
IDR871 billion in 2021. This is because cash collection should come
off a high with lower sales of finished homes, while construction
and interest costs will rise.
CFLD Deposit Risk Mitigated: Fitch has not included any land sales
to China Fortune Land Development Co., Ltd. (CFLD) in Fitch's
2022-2025 forecasts for ASRI because of CFLD's financial
difficulties. ASRI has a refundable deposit of about IDR650 billion
from CFLD, which was to be gradually offset against delivery of
land parcels by ASRI over five years to end-2021. ASRI has
confirmed that the agreement does not require a return of the
refundable deposit upon expiry. Fitch deducts the value of the CFLD
deposit from ASRI's net property asset used as the denominator in
Fitch's homebuilder's leverage calculation.
DERIVATION SUMMARY
ASRI's 'B-' IDR compares well with the company's two closest peers,
PT Kawasan Industri Jababeka Tbk (KIJA, B-/Stable) and PT Lippo
Karawaci TBK (B-/Stable).
KIJA's presales are lower than that of ASRI, but this is
counterbalanced by KIJA's steady cash flow from non-development
sources, mainly long-term power purchase agreements with
state-owned PT Perusahaan Listrik Negara (Persero) (BBB/Stable), a
dry port and estate management services. These in aggregate cover
KIJA's interest expenses by around 0.8x. KJIA's earliest
unaddressed bond maturity is in 2023, and Fitch expects only
negligible bank debt prior to that will be met via internally
generated funds. As such, ASRI is rated at the same level as KIJA.
ASRI and Lippo are also rated at the same level. ASRI's business
risk profile is better than Lippo's as it has higher profit margins
and the products in its sales mix are diversified, which supports
healthy free cash flows. Fitch expects ASRI to generate
neutral-to-positive FCF in the next two years. Lippo's free cash
flows are significantly negative, but this is mitigated by its
stronger liquidity and lower refinancing needs compared as its
earliest bond is due in 2025. ASRI's ability to refinance will
depend on the economic conditions being favourable and its ability
to regain lenders' and investors' confidence following the
distressed debt exchange in 2020.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within The Rating Case for the Issuer:
-- Attributable property presales of IDR3.1 trillion-3.3 trillion
in 2022 and 2023;
-- No bulk sales of land to CFLD in 2022-2024;
-- EBITDA margin of around 40% for 2022-2024;
-- ASRI to spend around IDR150 billion on discretionary land
banking annually in 2022-2023;
-- FCF of IDR483 billion in 2022 and IDR613 billion in 2023.
Key Recovery Rating Assumptions:
The recovery analysis assumes ASRI will be liquidated in a
bankruptcy rather than continue as a going-concern because it is an
asset-trading company.
-- A 75% advance rate against the value of accounts receivable
and a 50% advance rate against inventory, investment
properties and other property plant and equipment, in line
with peers;
-- The reported land bank value, which is based on historical
land costs, is at a significant discount to current market
value, and thus is already conservative. Based on the 1Q22
financials, the average book value of the land was around
IDR560,000/sqm, significantly lower than the residential land
lot price at Alam Sutera township of around IDR15.3
million/sqm and around IDR5.4 million/sqm at Suvarna Sutera
township in 1Q22;
-- ASRI's around IDR7.2 trillion of secured debt outstanding as
of March 2022 will rank prior to its USD24 million of senior
unsecured notes in a liquidation, but the USD24 million senior
unsecured notes were repaid in April 2022;
-- Deducted 10% of the resulting liquidation value for
administrative claims.
The resulting recovery rate corresponds to a Recovery Rating of
'RR1' for ASRI. However, the Recovery Rating is capped at 'RR4'
because, under Fitch's Country-Specific Treatment of Recovery
Ratings Criteria, Indonesia falls into Group D of creditor
friendliness. Instrument ratings of issuers with assets in this
group are subject to a soft cap at the issuer's IDR and a Recovery
Rating of 'RR4'.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Fitch does not expect positive rating action over next 12-18
months until ASRI is able to demonstrate its ability to repay
or refinance the 2024 and 2025 bonds
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Attributable presales sustained below IDR2 trillion;
-- A significant weakening in liquidity.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: ASRI had IDR1.3 trillion of cash as of
end-March 2022, which will be sufficient to cover debt maturities
in 2022-2023, as it has repaid the outstanding April 2022 bonds
with proceeds from its hedge. Fitch expects ASRI will need to tap
external financing or sell assets to repay its USD171 million of
secured notes due 2024 and USD251 million of secured notes due
2025, as Fitch does not expect the company will have sufficient
internal liquidity.
ISSUER PROFILE
ASRI is a mid-sized Indonesian homebuilder that develops and
manages two townships, Alam Sutera and Suvarna Sutera. Presales are
fairly evenly spread between the townships. Residential presales
contribute around 75% of the total, with commercial (shophouses,
office tower units) making up the balance.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
DEBT RATING RECOVERY PRIOR
---- ------ -------- -----
PT Alam Sutera LT IDR B- Affirmed B-
Realty Tbk
senior unsecured LT B- Affirmed RR4 B-
=====================
N E W Z E A L A N D
=====================
BETTER BUSINESS: Creditors' Proofs of Debt Due on July 4
--------------------------------------------------------
Creditors of Better Business Accounting Limited are required to
file their proofs of debt by July 4, 2022, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on June 2, 2022.
The company's liquidator is Kelera Nayacakalou.
DDL HOMES: Homebuyers' Deposits Safe, Receivers Say
---------------------------------------------------
Nick Krause at The Times reports that buyers of homes in a new
development in Flat Bush have been told by receivers their deposits
are safe and that their contracts with the property development
companies DDL Homes Ormiston and DDL Homes Ormiston 2020 are not
affected.
According to the report, receivers have been appointed to the
companies leading the development of the Maison Dormiston, Ormiston
Stage 2, Mission Heights and Ormiston Heights developments located
at 370 and 397 Ormiston Rd, Flat Bush.
The receivers are Neale Jackson and Brendon Gibson of Calibre
Partners, The Times discloses.
The receivers were appointed on June 3 after the developments'
financer became concerned about construction progress.
According to The Times, decisions about what happens next will be
made by the receivers.
"Buyers have been assured that the receivership does not affect
their contracts and their deposits are held in a trust account that
is also unaffected by the receivership," Mr. Jackson confirmed in a
media release, The Times relays.
"The receivers intend to provide buyers with further information as
soon as they can and regular updates throughout the receivership."
DDL Homes is a home builder based in New Zealand. The New Zealand
Companies Office lists the sole director and shareholder of DDL
Homes Ormiston Limited and DDL Homes Ormiston 2020 Limited - both
now in receivership and voluntary administration - as Baljit Kaur
Dheil of Flat Bush.
EKKO NATURALS: Creditors' Proofs of Debt Due on July 1
------------------------------------------------------
Creditors of Ekko Naturals Limited are required to file their
proofs of debt by July 1, 2022, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on June 1, 2022.
The company's liquidator is Kelera Nayacakalou.
KIWI SHEDS: Court to Hear Wind-Up Petition on June 16
-----------------------------------------------------
A petition to wind up the operations of Kiwi Sheds Northland
Limited will be heard before the High Court at Auckland on June 16,
2022, at 11:45 a.m.
Robert Nigel Gauld filed the petition against the company on May 5,
2022.
The Petitioner's solicitor is:
Anthony Johnson
Martelli McKegg
Level 20, HSBC Tower
188 Quay Street, Auckland
KSN GROUP: Court to Hear Wind-Up Petition on June 16
----------------------------------------------------
A petition to wind up the operations of KSN Group Limited will be
heard before the High Court at Auckland on June 16, 2022, at 11:45
a.m.
Robert Nigel Gauld filed the petition against the company on May 5,
2022.
The Petitioner's solicitor is:
Anthony Johnson
Martelli McKegg
Level 20, HSBC Tower
188 Quay Street, Auckland
LINK TRUST: BDO Wellington Appointed as Receivers
-------------------------------------------------
The High Court at Wellington on May 31, 2022, appointed Iain Bruce
Shephard and Jessica Jane Kellow of BDO Wellington as joint and
several receivers and managers of all of the property of Link Trust
(No.1)
Body Corporate 81012, 68792 and 378945 filed the petition against
the company.
The receivers and managers can be reached at:
BDO Wellington
Level 1, Chartered Accountants House
50 Customhouse Quay
Wellington 6011
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,
while Building Consulting commenced wind-up proceedings on June 1,
2022.
The company's liquidator is David Thomas.
MM AND SON: Creditors' Proofs of Debt Due on July 15
----------------------------------------------------
Creditors of MM and Son Developers NZ Limited are required to file
their proofs of debt by July 15, 2022, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on June 6, 2022.
The company's liquidator is:
Pritesh Patel
Patel & Co.
344 Great South Road
Papatoetoe, Auckland 2215
[*] NEW ZEALAND: Business Liquidations Rise in Otago and Southland
------------------------------------------------------------------
Otago Daily Times reports that liquidations in Otago and Southland
have jumped nearly 75% in the past year as Covid-19 pressures and
supply chain issues continue to bite.
Figures released by the Ministry of Business, Innovation and
Employment showed there were 65 liquidations in the South in the
year to May, compared with 37 in the year to May 2021, ODT relays.
Among the companies going bust are a string of building companies
as the industry faces problems with sourcing building materials
like Gib and timber.
However, liquidators are stressing while the numbers might look
dramatic, it might not be as bad as it seems, according to ODT.
ODT relates that Queenstown's Findex managing partner Duncan Fea,
who specialises in insolvency and business restructuring, said
there was no doubt it had been a tough period for businesses.
He said some of the liquidations could have been solvent companies
using the process as a way to wind up business.
For the insolvent liquidation - businesses that had run out of cash
- Covid-19 had put significant strain on cash flows, ODT says.
According to the report, the most common businesses going into
liquidation in Queenstown were from the hospitality, tourism and
construction sectors.
"You only need to walk down the main street of Queenstown and see
the shops," he said.
ODT relates that Mr. Fea said it was mainly small to medium-sized
enterprises affected and he was not aware of any larger businesses
folding.
While it had been tough, the major tourism and hospitality
businesses had been able to "hang in there" by either restructuring
or recapitalizing, the report states.
There had definitely been an increase in insolvent liquidations,
particularly in the construction industry.
The sector had been severely impacted by supply chain issues and
material shortages impacting company's ability to finish jobs. Some
of the liquidations in the construction sector were also because of
poor business management, particularly as the sector came off a
peak, ODT relates.
"It has come off an absolute high where everyone could make money,
to tightened up supply chains, rampant inflation and just poor
management, leading to closures," the report quotes Mr. Fea as
saying.
Dunedin liquidator Emma Laing, of Trevor Laing and Associates,
questioned the figures, saying it was difficult to tell whether
there was any real increase in insolvent liquidations. She believed
insolvency activity was still down from pre-pandemic levels,
according to the report.
During Covid-19, the Inland Revenue Department, which often takes
businesses with unpaid debts to court to liquidate them, held off
on taking action it might normally have taken.
Building and construction as well as smaller retailer and
hospitality businesses were definitely the common liquidations at
the moment, she said, ODT relays.
"Those industries are often quite vulnerable because their margins
are so slim at the best of times so any little change, like Covid,
affect them more."
Before the pandemic, liquidators were bracing themselves to be
inundated with cases but that never really happened.
The ongoing impacts of Covid-19, rising cost of living and rising
interest rates could mean more liquidations, the report notes.
=================
S I N G A P O R E
=================
ANIMAL WORLD: Court to Hear Wind-Up Petition on June 24
-------------------------------------------------------
A petition to wind up the operations of Animal World Pte. Ltd. will
be heard before the High Court of Singapore on June 24, 2022, at
10:00 a.m.
Ng Choong Leng filed the petition against the company on May 23,
2022.
The Petitioner's solicitors are:
FC Legal Asia LLC
36 Armenian Street
#03-03, Singapore 179934
CHANGI AIRPORT: Annual Loss Narrows to SGD838M on Return of Travel
------------------------------------------------------------------
The Business Times reports that Changi Airport Group narrowed its
losses to SGD838 million for the year ended
March 31, 2022, down from SGD954 million in the previous year, on
the back of a rebound in air travel as restrictions ease.
Full-year passenger traffic stood at 5.2 million in FY2021/22, at
about 8 per cent of pre-Covid-19 levels, the group said in an
exchange filing on June 9, BT relays.
Passenger numbers in March 2022 went up to 1.14 million, or 20 per
cent of pre-Covid levels - its highest since the start of the
pandemic, the report discloses.
According to the report, the group registered its first net loss in
FY2020/21, when passenger arrivals fell 98 per cent from the
previous year to just 1.1 million.
Revenue for FY2021/22 rose 35 per cent year on year to SGD944
million, but the group remained in the red, taking into account its
deconsolidation losses, write-down of investments in Russia, as
well as depreciation and amortisation charges.
BT adds that the group said the challenging business and economic
environment in Brazil made it untenable for it to operate the Tom
Jobim Airport in Rio de Janeiro, under the terms of an existing
concession agreement. The group deconsolidated Concessionaria
Aeroporto Rio de Janeiro as a subsidiary and recognised it as an
equity-accounted investee. It therefore registered a
deconsolidation loss of SGD128 million.
GIVEASIA KINDNESS: Creditors' Proofs of Debt Due on July 11
-----------------------------------------------------------
Creditors of Giveasia Kindness Limited are required to file their
proofs of debt by July 11, 2022, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on June 1, 2022.
The company's liquidator is:
Goh Tiong Hong
c/o 519 Balestier Road #02-05
Le Shantier
Singapore 329852
NATURAL COOL: MLT Seeks SGD1.4 Million in Unpaid Rent from Unit
---------------------------------------------------------------
The Business Times reports that air-Conditioning services company
Natural Cool Holdings said on June 10 that Mapletree Logistics
Trust (MLT) is seeking payment of over SGD1.4 million of rental in
arrears from wholly owned subsidiary Natural Cool Investments
(NCI).
Real estate investment trust (Reit) MLT is the landlord of 29 Tai
Seng Avenue, where NCI operates from, BT says.
BT relates that Natural Cool said it had received a letter of
demand from the solicitors acting for MLT on June 9.
However, the board said in the bourse filing that "no legal
proceedings have commenced at this stage".
According to the report, Natural Cool said NCI is seeking
professional advice on the matter, and is also in discussion with
MLT to work towards "a mutually acceptable and amicable
resolution".
Natural Cool had called for a trading halt before market open on
June 10.
Units of MLT closed 1.8 per cent or SGD0.03 lower at SGD1.67,
before the announcement, BT notes.
THYSSENKRUPP STEEL: Creditors' Proofs of Debt Due on July 11
------------------------------------------------------------
Creditors of Thyssenkrupp Steel Singapore Pte. Ltd. are required to
file their proofs of debt by July 11, 2022, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on June 1, 2022.
The company's liquidator is:
Ong Kok Yeong David
c/o 80 Robinson Road #02-00
Singapore 068898
WHEAT BAUMKUCHEN: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Singapore entered an order on June 3, 2022, to
wind up the operations of Wheat Baumkuchen Pte. Ltd.
Maybank Singapore Limited filed the petition against the company.
The company's liquidators are:
Mr. Leow Quek Shiong
Mr. Gary Loh Weng Fatt
BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
YONG TECK: Court Enters Wind-Up Order
-------------------------------------
The High Court of Singapore entered an order on June 3, 2022, to
wind up the operations of Yong Teck Pawnshop Pte. Ltd.
RHB Bank Berhad filed the petition against the company.
The company's liquidators are:
Lin Yueh Hung
Ng Kian Kiat
RSM Corporate Advisory Pte Ltd
8 Wilkie Road
#03-08 Wilkie Edge
Singapore 228095
=================
S R I L A N K A
=================
KOTALAGA PLANTATIONS: Fitch Affirms 'RD(lka)' Nat'l LongTerm Rating
-------------------------------------------------------------------
Fitch Ratings has affirmed Sri Lanka-based Kotagala Plantations
PLC's National Long-Term Rating at 'RD(lka)' (Restricted Default)
and its senior unsecured debentures at 'C(lka)'. The instrument
rating reflects Fitch's assessment that the debentures are
materially subordinated to the company's secured bank debt and
statutory dues.
The affirmations reflect Kotagala's ongoing debt-restructuring
process, with the company still in negotiations with a significant
number of lenders.
KEY RATING DRIVERS
Restructuring Ongoing: Kotagala has yet to restructure three debt
facilities of around LKR670 million in total, or 30% of its debt,
at the end of its financial year to March 2022 (FYE22). The company
is negotiating with one bank for a waiver of accrued interest and a
maturity extension, while negotiations with a second bank have yet
to start. The third facility is a LKR225 million revolving
commercial paper from a unit trust, which Kotagala is seeking to
set off against an investment of similar value with the fund.
Kotagala is not servicing interest or capital on some of the loans
that have yet to be restructured.
Most Obligations Restructured: The company has been able to
restructure its outstanding debentures and some of the bank loans
by extending the maturities at reduced interest rates in exchange
for timely settlement using a tripartite agreement. This involves
tea brokers remitting revenues from designated tea estates of the
company directly to the lenders. Consequently, Kotagala has been
servicing restructured obligations in a timely manner.
We believe the revenues from the designated tea estates will
comfortably cover the debt obligations in the next two years.
However, there is a risk that the residual cash flows from these
estates, may not be sufficient to meet the rising operating costs,
which will affect the long-term sustainability of the estates.
Large Statutory Arrears: At FYE22, Kotagala had LKR1.4 billion of
dues in relation to employee pensions, gratuity provisions and
government leases. The company has been settling the current dues
on time, helped by the improved operations, while negotiating
payment plans for the arrears. Kotagala plans to settle the
Employee Provident Fund outstanding of LKR400 million by remitting
LKR15 million monthly while gratuity dues of LKR300 million will be
paid as and when payments are ordered by the courts. Fitch has
assumed LKR250 million of cash outflow per year to settle the
employee dues.
Kotagala owes around LKR400 million to the government for rent on
its plantation estates and plans to settle it via the annual
harvesting of timber trees, together with any proceeds from its
ongoing legal case against the Urban Development Authority related
to one of its estates. Kotagala needs government approval to
harvest the trees and has not received such approval for the past
two years. Fitch does not believe the company will be able to
settle the lease arrears in the next 6-12 months given the
uncertainty of the outcome of the court case and sale of timber
trees.
High Crop Prices: Fitch expects revenue to rise by 75% in FY23 amid
strong crop prices and sharp depreciation of the local currency.
The Sri Lankan rupee has depreciated by almost 80% since the
currency was floated in March 2022, and this directly boosts
plantation companies' revenues. The global prices of rubber and
palm oil have also risen due to demand recovery and supply
shortages, albeit to a lesser extent. Prices are expected to remain
high in the next 6-12 months, which also supports Kotagala's cash
flows.
Near-Term EBITDA Recovery: Fitch estimates Kotagala's annual EBITDA
at LKR800 million for FY23-24 amid strong crop prices. EBITDA was
negative to very low until crop prices started rising in FY21.
Fitch expects plantation-sector wages to move up significantly at
the next wage revision due to inflation, which will affect the tea
and rubber businesses more as they are more labour-intensive than
palm oil. Sri Lanka's currency shortage and the rupee depreciation
has increased fertiliser prices by more than 10x. However, the high
crops prices would more than offset cost pressures in the near
term.
Rated on Standalone Basis: Fitch rates Kotagala on a standalone
basis as its stronger ultimate parent, The Colombo Fort Land and
Building PLC (CFLB), has limited incentive to provide support,
according to Fitch's Parent and Subsidiary Linkage Rating Criteria.
Fitch assesses CFLB's legal, strategic and operational incentives
to extend support as 'Weak'. The 'Weak' legal incentive stems from
the absence of corporate guarantees from CFLB on Kotagala's debt,
and the lack of cross-default clauses linking the parent's debt to
that of Kotagala.
Parent's Low Incentive to Support: Kotagala's contribution to
CFLB's group EBITDA will remain below 15% over FY22-FY25 while
factors such as competitive advantages to the parent and CFLB's
growth potential remain low, weakening the overall strategic
support incentive. CFLB has provided limited support in the past
via working-capital funding, but this has not been sufficient to
avoid a default. Operational incentives to support are also weak as
CFLB is diversified, with limited operational synergies with
Kotagala, with no brand overlap and little common management.
DERIVATION SUMMARY
Kotagala's rating is driven by its current debt restructuring
process for its bank loans, therefore Kotagala's rating is
multiple-notches lower than the ratings of its closest peers on the
Sri Lanka national scale.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer:
-- Revenue to increase by 75% in FY23 to LKR6.0 billion amid the
benefit of currency depreciation and stronger crop prices.
Revenue growth to slow to low single digits from FY24 once
global crop prices moderate;
-- EBITDA margin of 15% in FY23, benefitting from strong prices
across most crops. Margins to fall to high single digits in
FY24 once prices stabilise and owing to rising operating
costs, especially in the tea and rubber segments;
-- Capex of around LKR300 million a year over FY23-FY25 spent
mainly on replanting and mechanisation of the production
process;
-- Interest rates to increase to 20% over FY23-FY24 in line with
the recent hike in policy rates;
-- No dividend payments over FY23-FY24.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- The 'RD(lka)' rating will be upgraded to reflect the
appropriate National Long-Term Rating for the post-
restructuring capital structure, risk profile and prospects in
accordance with Fitch's criteria, upon completion of a
financial restructuring and once sufficient information is
available.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Kotagala entering into bankruptcy filings, administration,
liquidation or other formal winding-up procedures.
LIQUIDITY AND DEBT STRUCTURE
Weak Liquidity, Debt Restructuring: As of end-March 2022, Kotagala
had LKR133 million in cash compared with LKR1.2 billion in debt
maturing in the next 12 months. Of this, around LKR560 million of
short-term debt is currently being restructured. The remining
short-term debt of around LKR200 million is related to broker
credit and may be rolled over in the normal course of business
because they are backed by tea sales.
Kotagala's contractual maturities in the next 12 months amounts to
around LKR450 million, and of this LKR240 million will be directly
paid through the tripartite agreements with the tea brokers.
However, this will reduce the amount of cash available to fund the
group's operating costs in its plantations, especially in the
absence of any unutilised credit lines available from banks. The
group has around LKR400 million of unutilised broker credit that
can be used for working-capital purposes if required, but the debt
service cost of this facility is significantly higher than other
funding sources.
Fitch expects Kotagala to generate around LKR200 million in
negative free cash flow in FY23 amid high capex on replanting and
mechanisation of the harvesting process, following a capex slowdown
in the last few years to conserve cash, and settlement of statutory
dues during the year.
ISSUER PROFILE
Kotagala is a domestic plantation company engaged in tea, rubber
and palm oil.
DEBT RATING PRIOR
---- ------ -----
Kotagala Plantations Natl LT RD(lka) Affirmed RD(lka)
PLC
senior unsecured Natl LT C(lka) Affirmed C(lka)
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2022. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
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*** End of Transmission ***