/raid1/www/Hosts/bankrupt/TCRAP_Public/220627.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 27, 2022, Vol. 25, No. 121
Headlines
A U S T R A L I A
DELTA RESOURCE: First Creditors' Meeting Set for July 1
GOLD VALLEY: Second Creditors' Meeting Set for July 1
GREENSPACE GLOBAL: Second Creditors' Meeting Set for July 1
INCITEC PIVOT: Egan-Jones Retains BB+ Senior Unsecured Ratings
MASTER ELECTRICAL: Second Creditors' Meeting Set for July 1
PRO9 SYSTEMS: First Creditors' Meeting Set for July 1
PROBUILD: Creditors to Vote on Compensation Deal on June 30
SAPPHIRE XXII 2019-2: Moody's Hikes Rating on Class F Notes to Ba1
VESTONE CAPITAL 2: Fitch Gives 'BB(EXP)' Rating on Class E Debt
VINALIA GROUP: Second Creditors' Meeting Set for July 4
C H I N A
COUNTRY GARDEN: Moody's Assigns Ba1 CFR & Alters Outlook to Neg.
GUANGZHOU R&F: Fitch Lowers Foreign Currency IDR to 'C'
HONG YANG: Fitch Cuts LongTerm Foreign Currency IDR to 'B-'
SEASPAN CORPORATION: Fitch Affirms LT IDR at 'BB', Outlook Stable
SUNAC CHINA: May Miss Installment Payment on CNY4 Billion Bond
THEVELIA HOLDINGS: Fitch Assigns 'B' LongTerm Foreign Currency IDR
H O N G K O N G
NUTRYFARM INTERNATIONAL: Yang Resigns as Financial Controller
I N D I A
AAKRITI INFO-MEDIA: Insolvency Resolution Process Case Summary
BASAVAPOORNA POULTRY: CARE Lowers Rating on INR14cr LT Loan to B-
BILTUBE INDUSTRIES: Insolvency Resolution Process Case Summary
COOKME SPICE: Insolvency Resolution Process Case Summary
DAS GARAGE: CARE Keeps B Debt Rating in Not Cooperating Category
DQ ENTERTAINMENT INTERNATIONAL: Insolvency Resolution Case Summary
GANGOUR FOODS: Insolvency Resolution Process Case Summary
GREENLAND MOTORS: CARE Keeps B- Debt Rating in Not Cooperating
HYPER FILTERATION: CARE Keeps B+ Debt Rating in Not Cooperating
INDERPAL SINGH: CARE Lowers Rating on INR14cr LT Loan to B-
INDUS INTEGRATED: Insolvency Resolution Process Case Summary
INFONET ASIA: Liquidation Process Case Summary
J.S.R & COMPANY: CARE Lowers Rating on INR9cr LT Loan to B+
K R ENTERPRISES: CARE Lowers Rating on INR6cr LT Loan to B
K.K. SPINNERS: CARE Withdraws B+ Debt Rating on Long Term Loan
KAMNA MEDICAL: CARE Keeps D Debt Rating in Not Cooperating
KREYA INFRATECH: CARE Lowers Rating on INR3cr LT Loan to D
KRITI PRAKASHAN: Insolvency Resolution Process Case Summary
KWALITY FEEDS: CARE Lowers Rating on INR15.17cr LT Loan to B+
LAKSHMI TRANSCON: Insolvency Resolution Process Case Summary
MAHESHWAR HYDEL: CARE Keeps D Debt Rating in Not Cooperating
NIGOLICE TRADING: Insolvency Resolution Process Case Summary
NIRMAL LIFESTYLE: Insolvency Resolution Process Case Summary
PARANJAPE AGRO: Insolvency Resolution Process Case Summary
R V ENTERPRISE: CARE Lowers Rating on INR6.16cr LT Loan to B-
RAGHAV SAREES: Insolvency Resolution Process Case Summary
RAVIRAJ GINNING: CARE Keeps D Debt Rating in Not Cooperating
RSG EXPORTS: CARE Lowers Rating on INR31.94cr LT Loan to B+
SHIVACHAYA SUGARCANE: CARE Keeps D Debt Rating in Not Cooperating
SIAN INFRA: CARE Lowers Rating on INR6cr LT Loan to B+
SRM HOTELS: CARE Lowers Rating on INR62.68cr LT Loan to D
SUPERGARD STEELS: CARE Lowers Rating on INR10cr LT Loan to B-/A4
SUPERSHINE ABS: CARE Lowers Rating on INR13.85cr LT Loan to B-
T. K. ROADWAYS: CARE Lowers Rating on INR9.28cr LT Loan to B
THREE SIXTY: CARE Keeps B Debt Rating in Not Cooperating
VEGA JEWELDIAM: CARE Keeps D Debt Rating in Not Cooperating
VINIT KNITTINGS: CARE Lowers Rating on INR7.00cr LT Loan to C
VISHNU EATABLES: Insolvency Resolution Process Case Summary
VISION ROOFINGS: CARE Keeps B Debt Rating in Not Cooperating
VIVEKANANDA EDUCATION: CARE Lowers Rating on INR7.92cr Loan to B
J A P A N
JAPAN AIRLINES: Egan-Jones Retains CCC+ Senior Unsecured Ratings
KOBE STEEL: Egan-Jones Retains B+ Senior Unsecured Ratings
MARELLI HOLDINGS: Enters Court-Led Restructuring Process
MARUI GROUP: Egan-Jones Retains BB Senior Unsecured Ratings
RICOH COMPANY: Egan-Jones Retains BB+ Senior Unsecured Ratings
SAPPORO HOLDINGS: Egan-Jones Retains B Senior Unsecured Ratings
UNITIKA LTD: Egan-Jones Retains CCC+ Senior Unsecured Ratings
N E W Z E A L A N D
B B DISTRIBUTORS: Creditor' Proofs of Debt Due on Aug. 5
HIGHLANDER NZ: Post NZD21.7MM Loss for Quarter Ended Dec. 31
JULIA INTERIORS: Court to Hear Wind-Up Petition on June 30
METROPOLIS DESIGN: Court to Hear Wind-Up Petition on Sept. 15
MY TEMPLAR: Creditors' Proofs of Debt Due on July 28
OTAGO EXCAVATION: Faces Liquidation Bid From Quarry Company
PROPELLOR PROPERTY: Court to Hear Wind-Up Petition on Sept. 15
S I N G A P O R E
BMF BUSINESS: Court to Hear Wind-Up Petition on July 8
GROUP 12: Creditors' Proofs of Debt Due on July 24
OUE H-T: Creditors' Proofs of Debt Due on July 25
S O U T H K O R E A
SSANGYONG MOTOR: Ssangbangwool Submits Bid for Carmaker
S R I L A N K A
SRI LANKA: Economy 'Has Collapsed', Prime Minister Says
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A U S T R A L I A
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DELTA RESOURCE: First Creditors' Meeting Set for July 1
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Delta
Resource Management Pty Ltd will be held on July 1, 2022, at 10:00
a.m. via virtual facilities.
Robert Michael Kirman and Robert Conry Brauer of McGrathNicol were
appointed as administrators of Delta Resource on June 23, 2022.
GOLD VALLEY: Second Creditors' Meeting Set for July 1
-----------------------------------------------------
A second meeting of creditors in the proceedings of Gold Valley
Holdings Pty Ltd has been set for July 1, 2022, at 9:30 a.m. at
Level 10, 40 St Georges Terrace, in Perth, WA.
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 30, 2022, at 5:00 p.m.
Richard Tucker of KordaMentha was appointed as administrator of
Gold Valley on May 26, 2022.
GREENSPACE GLOBAL: Second Creditors' Meeting Set for July 1
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Greenspace
Global Pty Limited has been set for July 1, 2022, at 11:00 a.m. via
virtual meeting technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by June 30, 2022, at 5:00 p.m.
Matthew John Levesque-Hocking and Todd Andrew Gammel of HLB Mann
Judd were appointed as administrators of Greenspace Global on May
2, 2022.
INCITEC PIVOT: Egan-Jones Retains BB+ Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on June 7, 2022, retained 'BB+' foreign
currency and local currency senior unsecured ratings on debt issued
by Incitec Pivot Ltd.
Headquartered in Southbank, Australia, Incitec Pivot Ltd. is a
diversified industrial chemicals company that manufactures and
distributes industrial explosives, industrial chemicals, and
fertilizers.
MASTER ELECTRICAL: Second Creditors' Meeting Set for July 1
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Master
Electrical (Aust) Pty Ltd has been set for July 1, 2022, at 4:00
p.m. via teleconference.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by July 1, 2022, at 4:00 p.m.
Mohammad Najjar of Vanguard Insolvency was appointed as
administrator of Master Electrical on May 27, 2022.
PRO9 SYSTEMS: First Creditors' Meeting Set for July 1
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Pro9 Systems
Pty Ltd will be held on July 1, 2022, at 4:00 p.m. via virtual
meeting.
Jeremy Robert Abeyratne of APL Insolvency was appointed as
administrator of Pro9 Systems on June 22, 2022.
PROBUILD: Creditors to Vote on Compensation Deal on June 30
-----------------------------------------------------------
Sydney Morning Herald reports that Probuild creditors who are owed
millions of dollars from the collapse of the construction business
have been sent a proposal that the administrator believes could
deliver them a substantially better outcome than a formal
liquidation process.
Under a proposed Deed of Company Arrangement (DOCA), from the
administrator Deloitte, employee entitlements are to be paid in
full and earlier, than what would happen in a liquidation scenario
and the average return to small creditors (under AUD25,000) could
be between 50& and up to 71%, SMH relates.
Furthermore, distributions to unsecured creditors could be between
an estimated AUD9.4 million and AUD45.1 million.
According to SMH, Probuild's South African parent pulled financial
support from its Australian business on February 24 leaving 2,300
creditors and 786 employees with an uncertain future.
In late February, Deloitte Turnaround & Restructuring partners Sal
Algeri, Jason Tracy, Matt Donnelly and David Orr were appointed
joint administrators of 18 entities in the WBHO Australia Group,
the report recalls.
On Deloitte's appointment, the partners started an urgent sale
process that resulted in the engineering firm SRG Global paying
AUD15.2 million to take over Probuild's West Australian arm, while
the Sydney-based Roberts Co agreed to acquire five of the Victorian
assets of the collapsed company, according to SMH.
SMH says the deal comes as the construction sector is facing strong
headwinds due to rising interest rates, supply chain issues, cost
blowouts and labour shortages.
Probuild is just one of many groups that have collapsed or a
teetering on the edge. Others that specialise in home constructions
that have become insolvent include ABD Group, Privium Home, BA
Murphy, Condev, Next Construction and Pivotal.
Probuild creditors will have the opportunity to vote at a second,
virtual meeting this Thursday, June 30, to either return the
company to the directors' control, accept the DOCA, or put the
companies into liquidation, SMH notes.
About Probuild
Probuild Constructions Australia operates as a building contractor.
The Company focuses on commercial, educational and institutional,
industrial, residential, retail and entertainment, sport, and
leisure contractions.
On Feb. 23, 2022, David Orr, Sal Algeri, Jason Tracy and Matt
Donnelly of Deloitte were appointed as administrators of Probuild
Constructions (NSW) Pty Ltd and related entities, namely Probuild
Constructions (VIC) Pty Ltd; Probuild Constructions (WA) Pty Ltd;
Probuild Constructions (QLD) Pty Ltd; WBHO Australia Pty Ltd; WBHO
Construction Australia Pty Ltd; WBHO Infrastructure Pty Ltd; Carr
Civil Contracting Pty Ltd; Northcoast Holdings Pty Ltd; Probuild
Constructions (Aust) Pty Ltd; Probuild Civil Pty Ltd; PCA (QLD) Pty
Ltd; ACN 098 866 794 Pty Ltd; Contexx Holdings Pty Ltd; Contexx Pty
Ltd; Prodev Murphy Pty Ltd; Prodev Investments 4 Pty Ltd; and
Monaco Hickey Pty Ltd.
Probuild's parent company WBHO Australia Group is controlled by
South African-based Wilson Bayly Holmes-Ovcon Limited, but in
February 2022 withdrew financial support for the Australian
business, and administrators from Deloitte were appointed, The
Sydney Morning Herald said.
In a statement to the Johannesburg Stock Exchange, WBHO blamed the
collapse on factors including Covid-19 restrictions and a decision
by the Foreign Investment Review Board in January last year to
block the sale of the business to China's state-owned China State
Construction Engineering Corporation for a reported AUD300 million,
saying the Australian businesses "have not being able to complete
projects on time and not been able to recover variation and delay
claims," according to Guardian Australia.
SAPPHIRE XXII 2019-2: Moody's Hikes Rating on Class F Notes to Ba1
------------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on eight classes
of notes issued by two Sapphire residential mortgage-backed
securities (RMBS).
The affected ratings are as follows:
Issuer: Sapphire XXI Series 2019-1 Trust
Class C Notes, Upgraded to Aa1 (sf); previously on Nov 11, 2021
Upgraded to Aa2 (sf)
Class D Notes, Upgraded to A1 (sf); previously on Nov 11, 2021
Upgraded to A2 (sf)
Class E Notes, Upgraded to Baa2 (sf); previously on Sep 3, 2020
Confirmed at Ba1 (sf)
Class F Notes, Upgraded to Ba2 (sf); previously on Sep 3, 2020
Confirmed at B1 (sf)
Issuer: Sapphire XXII Series 2019-2 Trust
Class C Notes, Upgraded to Aa1 (sf); previously on Jun 11, 2021
Upgraded to Aa2 (sf)
Class D Notes, Upgraded to Aa3 (sf); previously on Jun 11, 2021
Upgraded to A2 (sf)
Class E Notes, Upgraded to Baa1 (sf); previously on Nov 11, 2021
Upgraded to Baa3 (sf)
Class F Notes, Upgraded to Ba1 (sf); previously on Nov 11, 2021
Upgraded to Ba3 (sf)
RATINGS RATIONALE
The upgrades were prompted by an increase in the credit enhancement
available to the affected notes and collateral performance, with no
or a low level of losses, to date.
Sapphire XXI Series 2019-1 Trust
Following the April 2022 payment date, note subordination available
for Class C and Class D has increased to 11.7% and 8.1%
respectively, from 10.8% and 7.2% at the last rating action for
these notes in November 2021. Note subordination available for
Class E and Class F Notes has increased to 5.9% and 4.1%
respectively, from 3.4% and 2.1% at the last rating action for
these notes in September 2020.
As of April 2022, 30-plus day and 90-plus day delinquent loans were
8% and 5.5% of the outstanding pool. The pool has incurred 0.2% (as
a percentage of the original pool) of losses to date, which have
been covered by excess spread.
Based on the observed performance to date and loan attributes,
Moody's has revised its expected loss assumption to 3.1% of the
outstanding pool (equivalent to 1.2% of the original pool) from
3.0% of the outstanding pool as of the last rating action in
November 2021.
Moody's has lowered its MILAN CE assumption to 15.5% from 16% since
the last rating action in November 2021, based on the current
portfolio characteristics.
Sapphire XXII Series 2019-2 Trust
Following the April 2022 payment date, note subordination available
for Class C and Class D has increased to 10.6% and 7.2%
respectively, from 8.4% and 5.5% at the last rating action for
these notes in June 2021. Note subordination available for Class E
and Class F Notes has increased to 4.5% and 3.3% respectively, from
3.9% and 2.7% at the last rating action for these notes in November
2021.
As of April 2022, 30-plus day and 90-plus day delinquent loans were
4.8% and 2.1% of the outstanding pool. The pool has incurred no
losses to date.
Based on the observed performance to date and loan attributes,
Moody's has lowered its expected loss assumption to 2.5% of the
outstanding pool (equivalent to 1.0% of the original pool) from
2.7% of the outstanding pool as of the last rating action in
November 2021.
Moody's has lowered its MILAN CE assumption to 13% from 13.5% since
the last rating action in November 2021, based on the current
portfolio characteristics.
The transactions are Australian RMBS secured by portfolios of
residential mortgage loans, originated by Bluestone Group Pty
Limited, an Australian non-bank mortgage lender. A significant
portion of the portfolio consists of loans extended to borrowers
with impaired credit histories or made on a limited documentation
basis.
The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
February 2022.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that could lead to an upgrade of the ratings include (1)
performance of the underlying collateral that is better than
Moody's expectations and (2) an increase in credit enhancement
available for the notes.
Factors that could lead to a downgrade of the ratings include (1)
performance of the underlying collateral that is worse than Moody's
expectations, (2) a decrease in the credit enhancement available
for the notes and (3) a deterioration in the credit quality of the
transaction counterparties.
VESTONE CAPITAL 2: Fitch Gives 'BB(EXP)' Rating on Class E Debt
---------------------------------------------------------------
Fitch Ratings has assigned expected ratings to Vestone Capital ABS
Warehouse Trust No. 2's floating-rate notes. The notes are backed
by a pool of first-ranking Australian equipment and software lease
and loan receivables originated by Vestone Capital Pty Limited. The
notes will be issued by Perpetual Corporate Trust Limited as
trustee for the Vestone Capital ABS Warehouse Trust No. 2.
DEBT RATING
---- ------
Vestone Capital ABS Warehouse Trust No. 2
A LT AAA(EXP)sf Expected Rating
B LT AA(EXP)sf Expected Rating
C LT A(EXP)sf Expected Rating
D LT BBB(EXP)sf Expected Rating
E LT BB(EXP)sf Expected Rating
F LT NR(EXP)sf Expected Rating
G LT NR(EXP)sf Expected Rating
TRANSACTION SUMMARY
This is a warehouse transaction featuring an initial 24-month
revolving period with an extension option.
KEY RATING DRIVERS
Forward-Looking Approach to Derive Base Case Loss: The Vestone
portfolio's historic vintage default performance has typically
tracked between 1% and 2%. Fitch analysed annual default rates
associated with the underlying portfolio to derive a one-year
default probability assumption for each asset group, which was
incorporated into Fitch's proprietary Portfolio Credit Model (PCM).
The one-year probabilities of default ranged from 0.5% for
PC-Hardware to 1.4% for Other Equipment.
The transaction's eligibility criteria and portfolio parameters
shaped the proxy portfolio used to drive the asset analysis. The
proxy portfolio reflects the assumption that the portfolio's
characteristics may migrate towards the limits during the revolving
period, including limits on borrower type, asset group and residual
value outstanding.
Portfolio Concentration Risk: The transaction documentation
includes pool parameters that limit the portfolio's largest obligor
and largest five obligors to 3% and 7.5% of the pool, respectively,
as well as limits on the largest industry group and aggregate
exposure of the largest three industry groups to 22.5% and 47.5%,
respectively. The proxy portfolio's composition was stressed close
to the parameter limits for each of these characteristics and
incorporated in Fitch's PCM analysis.
Commingling Risk Addressed: The commingling risk due to the
presence of the Bill & Collect receivables is mitigated by the
commingling reserve, funded by Vestone and required to be at least
4% of the aggregate outstanding balance of the Bill & Collect
receivables. In addition, the transaction's counterparty risk is
mitigated by structural mechanisms that ensure remedial actions
take place should ratings of the swap provider or trust account
bank fall below a certain level.
Residual Value Risk: Residual value (RV) risk is present as the
portfolio may include operating leases with an aggregate RV of up
to 7.5% of the portfolio. Historic performance of sales proceeds
versus the initial RV was used to assign a base-case RV assumption
of 60%. Fitch applies a 'AAAsf' RV haircut of 50%, which reflects
the nature of the asset class and the RV performance history of
other equipment-lease receivable transactions. No benefit was given
to inertia payments from the obligor after the end of the lease's
contractual term.
Stable Origination, Underwriting and Servicing: Vestone has
demonstrated adequate abilities as originator, underwriter and
servicer, as is evident from the historical delinquency and loss
performance of its lease portfolio. Servicer disruption risk is
mitigated by back-up servicing arrangements, with Perpetual being
the nominated back-up servicer.
Fitch undertook an operational and file review and found that the
operations of the originator and servicer were comparable with
those of other SME lenders.
SME Loan Recovery Rates: Fitch analysed Vestone's historic
equipment recovery rates to arrive at base recovery rates ranging
from 0% for Energy and Software to 15% for Other Equipment. A
recovery haircut of 50% at 'AAAsf' was applied, which reflects the
expected recoveries relative to the economic cycle and the
stability of the collateral characteristics.
Economic Growth Supports Outlook: The Stable Outlook is supported
by Australia's ongoing recovery. Fitch expects the country's strong
labour market and GDP growth to support transaction performance,
despite Fitch's forecast that interest rates will reach 1.85% and
inflation 5.5% by year-end. Fitch expectd GDP to expand by 4.0% in
2022, with an unemployment rate of 3.9%. GDP growth and inflation
should normalise to 2.5% and 2.1%, respectively, in 2023, with an
unemployment rate of 4.0%, while Fitch forecasts interest rates to
reach 2.50%.
Cash Flow Analysis
Fitch customises its proprietary cash-flow model to replicate the
flow of funds outlined in the documentation after an amortisation
event has occurred. Performance variables include loss
distribution, losses, prepayment rates and coupon rates.
From a cash-flow perspective, the collateral balance is reduced
either through principal collections or losses, both of which are
passed through to investors as principal payments or realised
losses. Given that no interest is collected on delinquent lease and
loan receivables, excess spread is compressed in this environment,
and collateral life is shortened through high losses and
prepayments. A shortfall in principal payments to investors will
occur unless excess spread is sufficient to cover losses.
Fitch also stressed factors such as the timing of losses and
recovery periods. A worst-case scenario results in more defaults in
the early period of the deal and fewer defaults in the latter
period. Such a scenario results in a slower build-up of credit
enhancement over time.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
The transaction's performance may be affected by changes in market
conditions and economic environment. Weakening asset performance is
strongly correlated with increasing levels of delinquencies and
defaults that could reduce CE available to the notes.
Downgrade Sensitivity
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
credit enhancement and remaining loss-coverage levels available to
the notes. Decreased credit enhancement 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, weighted-average recovery rate or net sales
proceeds - are modified, while holding others equal. The modelling
process uses the modification of default, loss and sales proceeds
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 conducted sensitivity analysis by increasing gross default
levels, decreasing recovery rates and decreasing net sales proceeds
over the life of the transaction.
Expected Downgrade Sensitivity:
Notes: A/B/C/D/E
Expected Rating: AAAsf/AAsf/Asf/BBBsf/BBsf
Increase mean defaults by 25%: AA+sf/AA-sf/Asf/BBB-sf/BB-sf
Increase mean defaults by 50%: AAsf/A+sf/A-sf/BBB-sf/B+sf
Reduce recoveries by 25%: AAAsf/AAsf/Asf/BBBsf/BBsf
Reduce recoveries by 50%: AAAsf/AAsf/Asf/BBBsf/BBsf
Increase mean defaults by 25% and reduce recoveries by 25%:
AA+sf/AA-sf/A-sf/BBB-sf/BB-sf
Increase mean defaults by 25% and reduce recoveries by 50%:
AAsf/A+sf/A-sf/BBB-sf/Bsf
Reduce sale proceeds by 10%: AAAsf/AAsf/Asf/BBBsf/BBsf
Reduce sale proceeds by 25%: AAAsf/AAsf/Asf/BBB-sf/BB-sf
Reduce sale proceeds by 50%: AA+sf/AA-sf/A-sf/BBB-sf/B+sf
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
Macroeconomic conditions, loan performance and credit losses that
are better than Fitch's baseline scenario or sufficient build-up of
credit enhancement that would fully compensate for the credit
losses and cash flow stresses commensurate with higher rating
scenarios, all else being equal.
Expected Upgrade Sensitivity:
Notes: A/B/C/D/E
Decrease mean defaults by 25%, increase recoveries by 25% and
increase sale proceeds by 25%: AAAsf/AAAsf/AA-sf/BBB+sf/BBB-sf
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.
CRITERIA VARIATION
The quantitative assumptions described in the Consumer ABS Rating
Criteria - Residual Value Addendum criteria are applicable to
vehicles; therefore Fitch has derived residual value assumptions
for this transaction that are comparable to the U.S. Equipment
Lease and Loan ABS Rating Criteria assumptions in relation to
giving credit to residual values. Credit to residual values was 50%
at 'AAAsf', 60% at 'AAsf', 70% at 'Asf', 80% at 'BBBsf', 85% at
'BBsf' and 90% at 'Bsf'.
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 sought to receive a third-party assessment conducted on the
asset portfolio information, but none was made available to Fitch.
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.
VINALIA GROUP: Second Creditors' Meeting Set for July 4
-------------------------------------------------------
A second meeting of creditors in the proceedings of Vinalia Group
Pty Ltd, trading as TRENDS Home, has been set for July 4, 2022, at
10:30 a.m. via virtually.
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 July 3, 2022, at 5:00 p.m.
Lee Crosthwaite of Worrells was appointed as administrator of
Vinalia Group on May 30, 2022.
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C H I N A
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COUNTRY GARDEN: Moody's Assigns Ba1 CFR & Alters Outlook to Neg.
----------------------------------------------------------------
Moody's Investors Service has assigned a Ba1 corporate family
rating to Country Garden Holdings Company Limited and withdrawn its
Baa3 issuer rating.
At the same time, Moody's has downgraded the company's senior
unsecured rating to Ba1 from Baa3.
Moody's has also changed the rating outlook on Country Garden to
negative from ratings under review.
This concludes the review for downgrade initiated on May 30, 2022.
"The rating downgrade reflects Country Garden's declining property
sales and deteriorating financial metrics amidst the challenging
operating conditions of the China property sector, as well as its
weakened access to long-term funding," says Kaven Tsang, a Moody's
Senior Vice President.
These negative developments no longer support the company's
previous Baa3 issuer rating.
"While Moody's expects Country Garden to maintain a strong market
position and good liquidity, the negative outlook reflects Country
Garden's reducing liquidity buffer and financial flexibility,
driven by falling property sales and continued weak market
sentiment in the next 6 -12 months," adds Tsang.
RATINGS RATIONALE
Country Garden's Ba1 CFR reflects the company's strong brand name,
sizable land bank and track record of developing mass-market
residential properties in China (A1 stable). At the same time, the
CFR reflects its high exposure to low-tier cities, weakened access
to capital market funds, and the impact of its declining property
sales and profit margin on its financial strength.
Moody's forecasts Country Garden's attributable contracted sales
will fall by around 30% to about RMB400 billion in 2022 because of
weak conditions in China's property market. Its attributed
contracted sales decreased by around 40% during the first five
months of the year to RMB150.6 billion because of the tough
operating conditions and the impact of pandemic-led disruptions
during the period.
Although the government has eased some restrictions in the property
market, Country Garden's high exposure to low-tier cities could
expose it to sales volatility and profit margin pressure, given the
weakened economic fundamentals there.
Moody's projects Country Garden's gross margin will fall to 15%-16%
over the next 12-18 months from 18% in 2021, as the rating agency
expects property selling price to decline amid difficult operating
condition.
Given this decline, along with the agency's expectation of a fall
in projected revenue and EBIT, Country Garden's EBIT/interest
coverage will decrease to 4.0x-4.3x over the next 12-18 months from
4.7x in 2021.
Meanwhile, Country Garden's access to the offshore bond market will
remain constrained, given the weak market sentiment. Moody's
notes that the company recently issued a RMB500 million onshore
bond with a coupon of 4.5% and a put option at the end of the first
year after issuance, but a consistent access to long-term funding
remains uncertain. Its constrained funding access will limit its
financial flexibility against the market downcycle.
Partly tempering these concerns are the expected decline in debt in
the next 6-12 months driven by Country Garden's downsizing in
operations as well as its good liquidity. In particular, its
unrestricted cash of RMB147 billion as of December 2021 and
projected operating cash flow will be sufficient to cover its
maturing debt, including its two offshore senior notes totaling
around $1.3 billion (approximately RMB8.5 billion) and various
onshore bonds totaling RMB29.1 billion that would become due or
puttable by the end of 2023. Country Garden made an offer on 15
June to redeem its $683 million bonds at par before the due date in
July 2022. After the repayment, the company will have only one
offshore bond maturity through the end of 2023.
Moody's also notes that part of the company's unrestricted cash
would have to be kept at the project level to support its
operations, which would limit the company's financial flexibility
to use internal cash for servicing debt at the holding company
level. In addition, the company's continued usage of internal
resources to repay its maturing debt will reduce its liquidity
buffer, particularly if it is unable to improve its access to
long-term funding in the next 6-12 months.
Country Garden's Ba1 senior unsecured bond rating is not affected
by the subordination to claims at the operating company level. This
is because despite its status as a holding company with most claims
at the operating subsidiaries, creditors of Country Garden benefit
from the group's diversified business profile, with cash flow
generation across a large number of operating subsidiaries with
high geographic diversification. Such diversification mitigates
structural subordination risk.
In terms of environmental, social and governance (ESG) factors,
Moody's has considered Country Garden's concentrated ownership by
its key shareholder, Yang Huiyan, who held a 61.25% stake in the
company as of the end of December 2021. The agency has also
considered the presence of five independent nonexecutive directors
on the company's 13-member board, and the presence of other
internal governance structures and standards as required by the
Corporate Governance Code for companies listed on the Hong Kong
Stock Exchange.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade of the ratings is unlikely in the near term, given the
negative outlook.
However, Moody's could revise Country Garden's rating outlook to
stable if the company strengthens its access to long-term funding,
and improves sales, and maintains stable financial metrics and good
liquidity through the downcycle.
Credit metrics supportive of its existing rating include
revenue/adjusted debt above 100%, gross margin above 15%-16% and
EBIT/interest above 4.0x, all on a sustained basis.
However, Moody's could downgrade the ratings if the company's
funding access, contracted sales and financial metrics weaken
further in the next 6-12 months.
Credit metrics that could lead to a downgrade include
revenue/adjusted debt dropping below 80%-90%, EBIT/interest falling
below 3.5x or gross margin declining under 15%.
The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in January 2018.
Country Garden Holdings Company Limited, founded in 1992 and listed
on the Hong Kong Stock Exchange, is a leading Chinese integrated
property developer. As of the end of 2021, the company had an
attributable land bank with a gross floor area of 253.1 million
square meters spanning 1,425 cities in China.
GUANGZHOU R&F: Fitch Lowers Foreign Currency IDR to 'C'
-------------------------------------------------------
Fitch Ratings has downgraded the Long-Term Foreign-Currency Issuer
Default Ratings (IDR) on China-based homebuilder, Guangzhou R&F
Properties Co. Ltd., and its subsidiary, R&F Properties (HK)
Company Limited (RFHK), to 'C' from 'CC'. The senior unsecured
ratings for the two companies, and the RFHK-guaranteed notes issued
by Easy Tactic Limited, have been affirmed at 'C' with a Recovery
Rating of 'RR6'.
The downgrade follows Guangzhou R&F's announcement that it is
soliciting consent from bondholders to amend the terms of its US
dollar notes and seek waivers on events of default. Fitch considers
the proposed amendments as a distressed debt exchange (DDE). If the
proposed consent solicitation is successful, the IDR will be
downgraded to 'RD' (Restricted Default). Fitch will then reassess
Guangzhou R&F's credit profile to determine an IDR that is
consistent with the company's post-amendment capital structure and
risk profile.
KEY RATING DRIVERS
Consent Solicitations Constitute a DDE: The consent solicitations,
if successful, will constitute a DDE under Fitch's rating
definitions. When considering whether a debt restructuring should
be classified as a DDE, Fitch expects both of the following to
apply: the exchange imposes a material reduction in terms compared
with the original contractual terms; and the exchange is conducted
to avoid bankruptcy, similar insolvency or intervention
proceedings, or a traditional payment default.
Consent Solicitation to Avoid Payment Default: Fitch considers the
consent solicitation to be necessary for Guangzhou R&F to avoid
default, as the solicitation asks holders to exclude "failure to
redeem and non-payment of principal and/or interest of certain
borrowings" and "non-payment of interest on the July 2024 Notes on
11 July 2022" from the events of default of the outstanding notes.
In addition, the company's announcement says that if the consent
solicitation in respect of any series of notes is not successfully
consummated, the company may resort to a scheme of arrangement to
effect a restructuring of the notes under the terms of the
restructuring support agreement.
Material Reduction in Terms: The consent solicitation proposal
includes an extension of the maturity dates of the notes and a
reduction of the coupon rates, which constitute a material
reduction in terms. While there is credit enhancement from the
inclusion of two projects (one in London and one in Malaysia) as
collateral, this is not sufficient to offset the above reduction in
terms.
DERIVATION SUMMARY
Guangzhou R&F's ratings are driven by its consent solicitation for
its US dollar notes, which Fitch determines is a DDE.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within the Rating Case for the Issuer
-- Attributable contracted sales to drop by 25% and 10% in 2022
and 2023, respectively;
-- EBITDA margin to remain low at around 1% in 2022-2023;
-- CNY3 billion- 4 billion a year for land acquisitions in 2022-
2023;
-- 55%-60% of sales proceeds will be used for construction in
2022-2023;
-- 9%-10% of revenue for selling, general and administrative
costs in 2022-2023.
KEY RECOVERY RATING ASSUMPTIONS
The recovery analysis assumes that Guangzhou R&F would be
liquidated in a bankruptcy as it is an asset-trading company. The
nature of homebuilding means the liquidation-value approach will
always result in a much higher value than the going-concern
approach.
Fitch has assumed a 10% administrative claim
Liquidation Approach
The liquidation estimate reflects Fitch's view of the value of
balance-sheet assets that can be realised in sale or liquidation
processes conducted during a bankruptcy or insolvency proceeding
and distributed to creditors;
-- 80% advance rate to accounts receivable, which was raised from
70%. This treatment is in line with Fitch's recovery rating
criteria;
-- 60% advance rate to investment properties, which was raised
from 54%. Guangzhou R&F's investment-property portfolio mainly
consists of commercial buildings in the Guangzhou area with an
implied yield of 7%-8% based on Fitch's assumed liquidation
value, which is consistent with industry transaction
valuation;
-- 50% advance rate to property, plant and equipment, which was
lowered from 60%, mainly consisting of hotel operations;
-- 61% advance rate to net inventory, which was lowered from 65%.
Guangzhou R&F's inventory mainly consists of completed
properties held for sale, properties under development (PUD)
and deposits or prepayments for land acquisitions. Different
advance rates were applied to these different inventory
categories to derive the blended advance rate for net
inventory;
-- 70% advance rate to completed properties held for sale.
Completed commodity housing units are closer to readily
marketable inventory. Guangzhou R&F has been similar to peers
in recent years in terms of a gross margin at 22%-25%. As
such, the advance rate of 70% was applied, which is higher
than the typical 50% mentioned in the criteria;
-- 50% advance rate to PUDs. Unlike completed projects, PUDs are
more difficult to sell. These assets are also in various
stages of completion. The PUD balance - prior to applying the
advance rate - is net of margin-adjusted customer deposits.
The 50% advance rate is in line with recovery rating criteria;
-- 90% advance rate to deposits or prepayments for land
acquisitions. Around 51% of Guangzhou R&F's land is located in
Tier 1 and Tier 2 cities in China and an additional 17% of the
land is located in Tier 1 cities overseas. As such, a higher
advance rate than the typical 50% mentioned in the criteria
was considered;
-- 50% advance rate to joint-venture net assets, which typically
include a combination of completed units, PUDs and land bank.
The 50% advance rate was applied in line with the baseline
advance rate for inventories;
-- 0% advance rate to excess cash after netting the amount of
note payables and trade payables (construction fee and
retention payables).
The allocation of value in the liability waterfall results in
recovery corresponding to a Recovery Rating of 'RR6' for the senior
unsecured offshore bonds.
RATING SENSITIVITIES
For Guangzhou R&F
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Fitch will reassess Guangzhou R&F's capital structure and cash
flow after the completion of the consent solicitation, or if
the consent solicitation is not completed, to determine its
IDR and senior unsecured ratings.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Fitch will downgrade Guangzhou R&F's IDR to 'RD' if the
consent solicitation is completed, or if it fails to meet any
of its debt obligations.
For RFHK:
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Upgrade of Guangzhou R&F's IDR.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- A downgrade of Guangzhou R&F's IDR;
-- Weakened linkage with Guangzhou R&F.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
ISSUER PROFILE
Founded in 1994, Guangzhou R&F is a property developer focusing on
medium- and high-end property development. The company also engages
in hotel development, commercial operations, property management
and architectural and engineering design.
ESG CONSIDERATIONS
Guangzhou R&F Properties Co. Ltd. has an ESG Relevance Score of '4'
for Financial Transparency due to a delay in the publication of
audited financial statements , which has a negative impact on the
credit profile, and is relevant to the ratings in conjunction with
other factors.
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
DEBT RATING RECOVERY PRIOR
---- ------ -------- -----
Guangzhou R&F
Properties Co. Ltd. LT IDR C Downgrade CC
senior unsecured LT C Affirmed RR6 C
R&F Properties (HK)
Company Limited LT IDR C Downgrade CC
senior unsecured LT C Affirmed RR6 C
Easy Tactic Limited
senior unsecured LT C Affirmed RR6 C
HONG YANG: Fitch Cuts LongTerm Foreign Currency IDR to 'B-'
-----------------------------------------------------------
Fitch Ratings has downgraded Chinese homebuilder Hong Yang Group
Company Limited and subsidiary Redsun Properties Group Limited's
Long-Term Foreign-Currency Issuer Default Ratings (IDRs) to 'B-'
from 'B', and senior unsecured ratings to 'B-' from 'B', with the
Recovery Ratings remaining at 'RR4'. The ratings are placed on
Rating Watch Negative (RWN).
The downgrade reflects decreasing liquidity headroom and heightened
refinancing risk amid volatile capital-market sentiment. Fitch
believes Hong Yang and Redsun's available cash should be sufficient
to cover debt maturities in 2022, but the group's capital-market
access remains limited and Fitch sees increasing uncertainty on
Redsun's offshore notes in 1H23.
The RWN reflects the uncertainty over the group's near-term
refinancing and asset disposal plans, which is still in progress,
and uncertainty about when sales will recover.
KEY RATING DRIVERS
Heightened Refinancing Risk: Hong Yang and Redsun together have
capital-market maturities of CNY3.4 billion for the rest 2022 and
CNY3 billion in 1H23. The group also expects to repay trust loans
and onshore asset-based securities totalling CNY850 million in
2022. Fitch believes the group's access to capital markets will
remain limited in the near term. Uncertainty on the repayment of
1H23 maturities is also increasing, in Fitch's view.
Tight Liquidity Buffer: Fitch estimates Hong Yang and Redsun had
over CNY5 billion of available cash for repaying debt as of May
2022, including CNY0.5 billion-1 billion at Hong Yang group
standalone (excluding Redsun and Redsun Services) and CNY4.5
billion at Redsun. This appears only sufficient to cover the
group's debt maturities for the rest of 2022 but will deplete the
liquidity buffer, as Fitch expects it to rely on cash at hand and
internal cash flow to address upcoming maturities.
Refinancing in Progress: Hong Yang has CNY2 billion in commercial
mortgage-backed securities (CMBS) against its furniture shopping
mall in Nanjing that become puttable in January 2023. The company
is proceeding with refinancing the CMBS with secured loans and
expects any loans in excess of the CMBS refinancing to be used to
support the group's other debt repayment. Fitch believes the timing
of the completion of the refinancing remains uncertain, although
Hong Yang said it has reached agreement with the leading bank.
Additional Liquidity Sources: Redsun is seeking to roll over and
raise new secured loans against two investment properties, both
located in Jiangsu province, for incremental funding of about
CNY900 million. It also plans to dispose stakes in some
joint-venture project companies to raise additional liquidity.
Fitch thinks these deals are subject to execution risk, given
volatile market conditions.
Weak Contracted Sales: Redsun's total contracted sales fell by 61%
yoy in 5M22 to CNY15.5 billion, on the recent resurgence of
Covid-19 in China and related lockdowns, which led to weaker
consumer housing demand and confidence. Sales in May 2022 increased
by 20.1% month-on-month to CNY3.1 billion, but Fitch believes a
broader sales recovery in 2H22 remains uncertain and Redsun's
full-year contracted sales will probably decline by over 30%. The
weak sales will continue to hamper the company's cash flow
generation and liquidity buffer.
Similar Standalone Credit Profiles: Fitch rates Hong Yang and
Redsun based on Fitch's Parent and Subsidiary Linkage Rating
Criteria. The companies' IDRs are the same, as Fitch assesses their
Standalone Credit Profiles (SCPs) as being equal. Fitch assesses
Hong Yang's SCP by taking into account its consolidated profile,
including its subsidiary, Redsun. Hong Yang group holds 72% of
Redsun, which represents the group's entire exposure to the Chinese
homebuilding business. The chairman of Redsun is the sole director
of Hong Yang group.
DERIVATION SUMMARY
Hong Yang's ratings are driven by increasing uncertainty on its
upcoming capital-market maturities and continued weak contracted
sales. Fitch believes Hong Yang's liquidity position is comparable
with KWG Group Holdings Limited (B-/RWN). KWG has larger and more
imminent maturities than Hong Yang in 2022, but Fitch believes it
may have more diversified refinancing channels, helped by a more
geographically diversified and better-quality asset portfolio than
Hong Yang.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within the Rating Case for the Issuers:
-- Total contracted sales to decline by 36% in 2022 before
increasing by 3% a year in 2023-2025;
-- Contracted average selling price to decrease by 15% in 2022
before recovering to low single-digit growth in 2023-2025;
-- Property development gross profit margin of about 16.9% in
2022-2025 (2021: 18%);
-- Minimal land acquisitions to prioritise debt repayment.
KEY RECOVERY RATING ASSUMPTIONS
Fitch's recovery analysis assumes that Hong Yang and Redsun would
be liquidated in a bankruptcy, as they are essentially
asset-trading companies. The nature of homebuilding means the
liquidation-value approach will almost always result in a higher
value than the going-concern approach.
Fitch assumes a 10% administrative claim, in line with criteria.
Liquidation Approach
The liquidation estimate reflects Fitch's view of the value of
balance-sheet assets that can be realised in a sale or liquidation
process conducted during bankruptcy or insolvency proceedings and
distributed to creditors.
-- Advance rate of 80% applied to accounts receivable. This
treatment is in line with Fitch's Corporates Recovery Ratings
and Instrument Ratings Criteria;
-- Advance rate of 58% applied to net property inventory.
Redsun's inventory consists mainly of completed properties
held for sale, properties under development (PUD) and deposits
and prepayments for land acquisition. Different advance rates
were applied to the various inventory categories to derive a
blended advance rate;
-- Advance rate of 65% applied to completed properties held for
sale. Completed commodity housing units are closer to readily
marketable inventory and Redsun has a historically strong
gross margin of around 20%. As such, Fitch applied a higher
advance rate than under criteria;
-- Advance rate of 55% applied to PUD. PUD are more difficult to
sell than completed projects and are at various stages of
completion. The PUD balance - prior to applying the advance
rate - is net of margin-adjusted customer deposits;
-- Advance rate of 90% applied to deposits and prepayments for
land acquisitions. Similar to completed commodity housing
units, land held for development is closer to readily
marketable inventory. Redsun's land is mostly located in Tier
2 and 3 in the Yangtze River Delta;
-- Advance rate of 50% applied to property, plant and equipment,
which consists mainly of buildings, the value of which is
insignificant;
-- Advance rate of 60% applied to Redsun's investment properties.
Redsun's investment property portfolio consists mainly of
commercial buildings located in the Yangtze River Delta area.
The portfolio has an average rental yield of 4%, in line with
the industry average;
-- Advance rate of 100% applied to Hong Yang's investment
properties, excluding Redsun, based on a high rental yield of
over 10% and asset location;
-- Advance rate of 50% applied to joint-venture net assets, which
typically include a combination of completed units, PUD and
landbank. The advance rate is in line with the baseline rate
for inventory;
-- Advance rate of 0% applied to excess cash after netting the
amount of note payables and trade payables (construction fee
and retention payables).
The above items exclude the portion from Redsun Services Group Ltd,
the listed property-management arm of Hong Yang group. The recovery
value of Hong Yang's stake in Redsun Services is based on the
going-concern approach.
The allocation of value in the liability waterfall results in
Recovery Rating corresponding to 'RR2' for Redsun's senior
unsecured offshore bonds and 'RR1' for Hong Yang's senior unsecured
bonds. However, the Recovery Rating for senior unsecured debt is
capped at 'RR4', because under Fitch's Country-Specific Treatment
of Recovery Ratings Criteria, China falls into Group D of creditor
friendliness, and Recovery Ratings of instruments from issuers with
assets in this group are subject to a cap of 'RR4'.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- The RWN would be resolved when the negative sensitivities are
not met.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Deterioration in liquidity or funding access to address bond
maturities for the rest of 2022;
-- Significant decline in contracted sales or cash collection.
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
Tight Liquidity: Hong Yang and Redsun have large capital-market
maturities of CNY3.4 billion in the remainder of 2022 and CNY3
billion in 1H23. Available cash at Hong Yang and Redsun for
repaying debt at end-May 2022 can cover debt repayments in 2022 but
would be insufficient for 1H23. Fitch thinks the group's access to
capital markets will probably remain limited in near term, and it
will have to rely on internal cash to repay debt. This will deplete
its available cash balance and reduce its liquidity buffer.
ISSUER PROFILE
Hong Yang is the parent company and owns 72% of Hong Kong-listed
Redsun. Hong Yang's founder started the property development
business in 2001. Hong Yang group, excluding Redsun, has a property
management services company Redsun Services, which was separately
listed in Hong Kong in July 2020, as well as a large retail and
wholesale centre for home decoration material and furniture in
Nanjing, Jiangsu province.
Redsun focuses on developing residential properties in Jiangsu
province and has expanded into other regions. It also operates
retail malls, offices and hotels.
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
---- ------ -------- -----
Hong Yang Group LT IDR B- Downgrade B
Company Limited
senior unsecured LT B- Downgrade RR4 B
Redsun Properties LT IDR B- Downgrade B
Group Limited
senior unsecured LT B- Downgrade RR4 B
Hong Seng Limited
senior unsecured LT B- Downgrade RR4 B
SEASPAN CORPORATION: Fitch Affirms LT IDR at 'BB', Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Rating
(IDR) and unsecured note rating of Seaspan Corporation (Seaspan) at
'BB'. The Rating Outlook is Stable.
KEY RATING DRIVERS
The rating affirmations reflect Seaspan's scale and franchise as a
leading containership lessor, low leverage, solid liquidity and
sufficient funding flexibility following recent unsecured debt
issuances. Seaspan's ratings are also supported by a strong
operating platform, which includes ownership of a young fleet on
long-term charters, consistent operating cash flow generation,
solid profitability, and an experienced leadership team.
Seaspan's ratings are primarily constrained by the company's
significant customer concentration, a high proportion of secured
funding and the specialized nature and relative illiquidity of
containerships when compared with other large equipment lessors.
Rating constraints applicable to the containership leasing sector
include risks associated with the cyclicality of the global
shipping industry and the potential for undisciplined industry
capacity build-up that may negatively impact the financial
performance of freightliners, pressuring containership lease rates,
and exposing Seaspan to potentially sizable impairment charges.
Seaspan is the largest containership lessor in the world with 132
ships accounting for 1.1 million of Twenty-foot Equivalent Unit
(TEU) capacity as of March 31, 2022. Seaspan also has one of the
largest order books in the industry, consisting of 67 ships with
811,400 TEU capacity, all of which already have contracted charter
agreements attached. The company's fleet is the youngest among
public peers with a weighted average fleet age of 4.9 years as of
1Q22, pro forma for the order book and sale of held-for-trading
vessels.
Seaspan has meaningful customer concentration risk, as the top
three customers comprised more than 60% of lease revenues in 1Q22.
Seaspan has not recognized impairments on its vessels since 2016,
and Fitch expects impairment risk to remain low over the Outlook
horizon given the young, in-demand fleet and the market position of
the lessee base.
Seaspan's leverage is among the lowest compared to Fitch-rated
equipment lessors, with a ratio of gross debt to tangible common
equity of 1.8x as of March 31, 2022. Fitch expects leverage will
remain at or below 2x over the Outlook horizon.
Seaspan's largely secured funding profile constrains the rating. At
March 31, 2022, unsecured debt represented 24.1% of total debt, up
from 17.6% at last review. However, Fitch believes the unsecured
funding percentage may decline as the company draws on secured
borrowing capacity to fund its orderbook. Fitch would view an
increase in unsecured funding favorably, as it would improve
funding flexibility in times of stress.
At March 31, 2022, Seaspan had $151 million of cash on hand and
$650 million availability under its committed revolving credit
facilities. Seaspan's debt maturity profile is well laddered with
less than $500 million of debt maturing within the next nine
months. In addition, Fitch anticipates the company's dividend
payout will be managed in the range of 20% to 30% of operating cash
flows, which is believed to be manageable.
Fitch estimates the company's liquidity coverage ratio (defined as
cash on hand, borrowing capacity on committed facilities, projected
draws on capex related secured financing commitments and expected
operating cash flows over the next 12 months to debt maturities,
dividends and purchase commitments over the next 12 months) was
above 1.4x at year-end 2021, which is solid for the ratings.
The Stable Outlook reflects Fitch's expectation that Seaspan will
maintain its market position and generate consistent cash flows,
while maintaining sufficient liquidity, an unsecured funding
component above 10% of total debt, and leverage at or below 2.0x.
The unsecured debt rating is equalized with the Long-Term IDR,
reflecting the funding mix and the availability of unencumbered
vessels, which suggests average recovery prospects in a stressed
scenario.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade include:
-- Material deterioration of the container shipping industry due
to trade wars between large economies and/or exogenous shocks
resulting in oversupply of containerships and sustained
declines in lease rates and cash generation of re-chartered
vessels;
-- The default of one of the company's top lessees; elevated
vessel impairments that erode Seaspan's equity base;
-- Debt funded capital distributions to the parent; a sustained
increase in leverage above 3.0x;
-- A sustained decline in unsecured funding below 10%;
-- The decline of liquidity coverage below 1x.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
Factors that could, individually or collectively, lead to positive
rating action/upgrade include an increase in unsecured debt
approaching 35% of total debt, which would enhance the firm's
funding flexibility, and further diversification and improvement in
the credit quality of the customer base. Positive rating momentum
would also be contingent on the continuation of minimal
impairments, maintenance of a manageable dividend payout ratio,
leverage (gross debt to tangible equity) at or below 2x, and
liquidity coverage above 1x.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Financial Institutions and
Covered Bond 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.
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
---- ------ -----
Seaspan LT IDR BB Affirmed BB
Corporation
senior unsecured LT BB Affirmed BB
SUNAC CHINA: May Miss Installment Payment on CNY4 Billion Bond
--------------------------------------------------------------
South China Morning Post reports that Sunac China Holdings may miss
an instalment payment on a CNY4 billion (US$598 million) onshore
bond because of a liquidity crunch, in a fresh sign that China's
pandemic curbs are plaguing the already beleaguered property
developer.
The Post relates that Sunac Real Estate, a wholly-owned subsidiary
of the country's fourth-largest developer, said in a statement on
June 24 that it was not able to arrange sufficient funds to make
the payment due on June 30 after sales by its parent in the first
five months of this year plunged 59%.
"The company will work out an adjusted payment plan based on the
financial conditions," the statement said. "We will keep
communicating with the bondholders."
Sunac extended the CNY4 billion bond - which was originally due on
May 15 - by 18 months from April 1 after reaching an agreement with
creditors, the Post notes.
It completed the first instalment payment of CNY400 million, or 10%
of the principal, on May 15, and was supposed to repay another
CNY400 million in the second instalment on June 30, the Post notes.
Sunac Real Estate said the cash for the second instalment would not
be ready before the deadline.
"Lockdowns and standstill orders [to battle the Covid-19 pandemic]
in cities such as Shanghai have exacerbated a sluggish property
market and ratcheted up pressure on those debt-ridden developers,"
the Post quotes Wang Feng, chairman of Shanghai-based financial
services group Ye Lang Capital, as saying. "The vicious cycle will
continue now that business activities in some major cities have not
returned to full normality yet."
Once viewed as among the healthiest firms in China's CNY18.2
trillion property market, Sunac China reported home contract sales
of CNY98.8 billion from January to May, compared to CNY242 billion
a year earlier, the report says.
The next instalment worth CNY600 million for the yuan-denominated
bond is scheduled to be paid on September 30, the Post notes.
Sunac is also working on a restructuring of its offshore debts,
aiming to finalise this in the next two to three months, people
familiar with the situation told the South China Morning Post. It
is also in talks with some state-owned companies about strategic
investments in the firm.
In May, Sunac missed the deadline for a coupon payment on a US$742
million offshore bond and said it could not make payments coming
due on other bonds, joining the list of defaults by China's
cash-strapped property developers, according to the Post.
About Sunac China
Sunac China Holdings Limited (SEHK:1918) --
http://www.sunac.com.cn/-- is principally engaged in the sales of
properties in the People's Republic of China. The Company operates
its business through two segments: Property Development and
Property Management and Others. The Company's subsidiaries include
Sunac Real Estate Investment Holdings Ltd., Qiwei Real Estate
Investment Holdings Ltd. and Yingzi Real Estate Investment Holdings
Ltd.
As reported in the Troubled Company Reporter-Asia Pacific on May
19, 2022, Moody's Investors Service has downgraded the corporate
family rating of Sunac China Holdings Limited to Ca from Caa1, and
the company's senior unsecured ratings to C from Caa2. The outlook
remains negative.
THEVELIA HOLDINGS: Fitch Assigns 'B' LongTerm Foreign Currency IDR
-------------------------------------------------------------------
Fitch Ratings has assigned Thevelia Holdings Limited (Thevelia) a
final Long-Term Foreign-Currency Issuer Default Rating (IDR) of
'B'. The Outlook is Stable. Fitch has also assigned a final rating
of 'B+' with Recovery Rating of 'RR3' to its USD760 million senior
first-lien secured term loan B (TLB) issued by Thevelia (US) LLC,
which is wholly owned by Thevelia.
The assignment of the final ratings follows the completion of the
TLB issuance and the acquisition of business and corporate services
provider Tricor Group, in line with Fitch's expectations. The final
ratings are the same as the expected ratings assigned on January 24
2022.
The ratings reflect Thevelia's high leverage following the
acquisition, but Fitch expects Tricor's high profitability and
strong cash flow generation to support subsequent deleveraging.
Tricor's business profile is supported by the defensive nature of
its revenue, where a high proportion is recurring and from a
diverse, high-quality customer base. Its broad range of services
allows for cross-selling opportunities, which enhances customer
stickiness and allows for potential margin expansion.
KEY RATING DRIVERS
High Leverage: Fitch expects Thevelia's leverage to be high
immediately after the acquisition, but it has the capacity to
deleverage through growing scale and FCF generation. Fitch
estimates Thevelia's pro forma leverage, based on consolidated
total debt/operating EBITDA, at 7.8x by end-2022, before reducing
to below 7x by 2024. Delivery of planned cross-selling and cost
efficiencies could lead to faster-than-expected deleveraging.
Cash-Generative Business Model: In Fitch's view, the asset-light
nature of Tricor's business service operations should allow for
high cash conversion. FCF generation will be supported by high
profitability at around 39% EBITDA margin and low capital
intensity, resulting in FCF margin of 11%-13% in 2022-2024, which
is high relative to many Fitch-rated business services peers.
Tricor's cash generation allows it to be well-capitalised and have
the flexibility for debt repayment or to prepare for selective
bolt-on acquisitions to supplement its platform.
Established Platform in Asia: Tricor is a leading
business-expansion specialist focused on Asia that offers a unique
value proposition for customers as a one-stop shop. It has a strong
foothold in business/corporate and investor services in key markets
like Hong Kong, Malaysia and Singapore. Its multi-jurisdictional
expertise with support across many service lines is an advantage
compared to single service/region providers, as demand for
cross-border platforms rises and high-quality service is required
to meet increasingly stringent regulations and the rising
importance of brands and reputation.
The industry is highly fragmented but Fitch believes Tricor has
established barriers to entry with the breadth of its service
offerings. Tricor may focus on deleveraging in the near term, but
strong cash generation will support sufficient capital for
selective bolt-on acquisitions to build expertise.
Resilient, Highly Visible Revenue: Tricor benefits from a defensive
business model with demand that has performed well through economic
cycles, supported by a consistent customer base and a high
proportion of recurring services. It has over 16,000 client groups,
with low attrition and spread across a wide range of industries.
Such diversification supports the stability of its end-market
demand.
Over 70% of revenue is contractually recurring, and a portion of
the remaining services have also frequently re-occurred.
Cross-selling also supports customer retention and improves
earnings visibility, with the cross-selling rate in its top 3,000
clients at around 50%.
Improving Service Quality: Fitch thinks initiatives to improve the
customer experience and operating efficiency may underpin widening
profitability. Tricor's previous margin expansion demonstrates the
scalability of its business, with EBITDA margin rising to 33% in
2021 from 28% in 2018. Internal improvements in automation and
standardisation as well as expanding service offerings can be a key
point of differentiation to win customer mandates. Its capacity to
continue investing in technology and compliance capabilities can
therefore support further margin expansion.
DERIVATION SUMMARY
Fitch compares Thevelia to relevant peers in the business services
sector. Fitch forecasts Thevelia's net debt/EBITDA to be at the
higher end of the range for the business services sector following
the acquisition of Tricor and in line with the typical leverage of
peers rated 'B' or below. However, its deleveraging capacity is
supported by high profitability and consistent positive FCF
generation.
Apex Structured Intermediate Holdings Limited (B/Stable) shares a
similar operational profile to Thevelia, in terms of having a high
proportion of recurring revenue and strong cash flow generation.
Fitch expects both companies to have higher leverage following
acquisitions, but they have deleveraging capacity from FCF
generation. Apex faces integration risks for the prospective
acquisition of Sanne, a provider of alternative fund services, but
Fitch believes the risks are manageable.
Hurricane Bidco Limited (Paymentsense; B/Stable) has a smaller
scale and limited geographical presence compared with Tricor.
Paymentsense's leverage is higher than Thevelia's due to the
Covid-19 pandemic reducing revenue growth and additional growth
investments affecting profitability, but its normalised leverage,
assuming no further major lockdowns in the UK, would be lower than
that of Thevelia.
EmployBridge Holding Co (B+/Stable) has a weaker business profile
than Tricor, with product concentration, lack of contractual sales,
and end-market cyclicality being constraining factors. However,
EmployBridge's lower leverage justifies the rating above Thevelia.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within the Rating Case for the Issuer
-- Revenue growth of 4%-5% yoy in 2022-2024 (the growth rate
assumes pro forma contribution in 2021 including acquired
companies and full-year contribution from Tricor in 2022);
-- Adjusted EBITDA margin of 39%-40% in 2022-2024;
-- Capital intensity of 4% in 2022-2024;
-- No M&A cash outflow;
-- Repayment of Tricor's prior debt upon Thevelia's acquisition
in 2022;
-- 1% loan amortisation of the first lien TLB annually;
-- 1.25% benchmark rate for the TLB;
Key Recovery Rating Assumptions;
-- Tricor would be reorganised as a going-concern (GC) in
bankruptcy rather than liquidated given its asset-light
business model;
-- Fitch estimates that the post-restructuring pro-forma GC
EBITDA would be around USD100 million. In this scenario, the
stress on EBITDA could result from potential corrective
measures taken in reorganisation to offset the adverse
conditions that triggered default, such as cost-cutting
efforts;
-- An enterprise value (EV) multiple of 5.5x is applied to the GC
EBITDA to calculate a post-reorganisation EV. The multiple is
in line with that of other similar peers. This reflects
Tricor's good revenue visibility combined with geographic and
customer diversification, and a strong cash-generative
business;
-- 10% of administrative claims deducted from the EV to account
for bankruptcy and associated costs;
-- The total amount of first-lien secured debt for claims
includes USD760 million senior secured first- lien term loans
and an equally ranking USD130 million revolving credit
facility that Fitch assumes to be fully drawn;
-- The allocation of value in the liability waterfall results in
recovery corresponding to an 'RR3' Recovery Rating for the
senior secured first-lien debt instrument, which is rated at
'B+', one notch above the 'B' IDR.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Total debt/EBITDA sustained below 5x;
-- Operating EBITDA/interest paid sustained above 3x.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Deterioration in EBITDA margin, for instance due to a loss of
customers or contracts, or increased operating costs;
-- Total debt/EBITDA failing to trend towards below 7x;
-- Operating EBITDA/interest paid sustained below 2x.
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: Fitch expects Thevelia to have sufficient
liquidity following the acquisition and issuance of the TLB. Fitch
expects Tricor's prior outstanding debt will be repaid upon
completion of the acquisition by Thevelia. Thevelia will rely on
cash flow from Tricor to fund its interest payments, which will be
supported by Fitch's forecast of consistent positive FCF
generation.
ISSUER PROFILE
Thevelia is an investment vehicle set up by Baring Private Equity
Asia to acquire Tricor. Tricor is a business expansion specialist
with operations across Asia. It provides business, corporate,
investor and other services to corporate customers.
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
---- ------ -------- -----
Thevelia Holdings LT IDR B New Rating B(EXP)
Limited
Thevelia (US) LLC
senior secured LT B+ New Rating RR3 B+(EXP)
=================
H O N G K O N G
=================
NUTRYFARM INTERNATIONAL: Yang Resigns as Financial Controller
-------------------------------------------------------------
The Business Times reports that Nutryfarm International's financial
controller and joint company secretary Yang Kai Leong will step
down from July 31, 2022, to pursue other career opportunities, the
durian and health foods distributor said on June 24.
The move comes around 4 months after his appointment on April 6
this year, BT says. The 35-year old is in charge of the group's
finance operations and is the joint secretary for Nutryfarm's
corporate matters.
On April 24, Lim Boo Hiong, Nutryfarm's acting chief financial
officer and joint company secretary at the time, resigned due to
health reasons. He took on the roles on Oct. 1, 2021.
Yang's stepping down comes just days after Nutryfarm announced the
impending departure of its non-executive independent director Low
Chin Parn Eric, BT notes.
On June 20, the company said Low will step down from his role on
Sept. 18, just a little over 8 months since his appointment on Jan.
2 this year, BT relates. The 60-year-old cited personal reasons for
his departure from the company.
Shares of Nutryfarm have been voluntarily suspended since April
this year, BT notes.
Based in Hong Kong, NutryFarm International Limited operates as a
holding company. The Company, through its subsidiaries,
manufactures and develops nutritional and herbal supplement
products.
=========
I N D I A
=========
AAKRITI INFO-MEDIA: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Aakriti Info-Media Private Limited
FFS No. 24 Udyog Sheel
Mahila Sehkari Samiti Ltd.
120 Mathura Road
Near Apollo Hospital
New Delhi, South Delhi 110076
Insolvency Commencement Date: June 13, 2022
Court: National Company Law Tribunal, Delhi Bench-VI
Estimated date of closure of
insolvency resolution process: December 11, 2022
Insolvency professional: Rakesh Bhatia
Interim Resolution
Professional: Rakesh Bhatia
123 New Lajpat Rai Market
Delhi 110006
E-mail: iprakeshbhatia@gmail.com
cirp.akritiimpl@gmail.com
Last date for
submission of claims: June 28, 2022
BASAVAPOORNA POULTRY: CARE Lowers Rating on INR14cr LT Loan to B-
-----------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Basavapoorna Poultry Farm (BPF), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 28, 2021,
placed the rating(s) of BPF under the 'issuer non-cooperating'
category as BPF had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. BPF continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 14, 2022, March 24, 2022 and April 3, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of BPF have been
revised on account of non-availability of requisite information.
Karnataka based Basavapoorna Poultry Farm (BPF) is a partnership
firm established in 2000 by Mr. N. Sridhar and his wife Mrs. N.
Anuradha. The firm is engaged in layer poultry farming and
wholesale trading of eggs. The firm has existing installed capacity
of 4,00,000 layers in 19 sheds. The firm sells its products, eggs,
cull birds, and manure majorly to customers in Goa, Karnataka and
Maharashtra. The firm purchases inputs for feeding of birds like
maize, soya, broken rice, shell grit and minerals from local
traders. The day to day operations of the firm are managed by Mr.
N. Sridhar.
BILTUBE INDUSTRIES: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Biltube Industries Limited
Gat No. 1172 to 1178
At Post Kodoli
Taluka Panha
Kolhapur 416114
Insolvency Commencement Date: June 17, 2022
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: December 14, 2022
Insolvency professional: Ashok Mittal
Interim Resolution
Professional: Ashok Mittal
Banglow No. 1
Aai Shree Khodiyar Krupa
Datta Pada Road
Rajendra Nagar, Borivali East
Near Jai Santoshi Maa Tower
Mumbai 400066
E-mail: ashokmittal2020@gmail.com
cirp.biltube@gmail.com
Last date for
submission of claims: July 1, 2022
COOKME SPICE: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Cookme (Spice) Private Limited
38, K K Tagore Street
Kolkata 700007
Insolvency Commencement Date: June 13, 2022
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: December 9, 2022
Insolvency professional: Debdas Chakraborty
Interim Resolution
Professional: Debdas Chakraborty
8, Binay Bala Mukherjee
Lane Uttarpara
Hooghly 712258
E-mail: ipddc2019@rediffmail.com
- and -
18, Rabindra Sarani
Poddar Court, Gate No. 1
3rd Floor, Room No. 332
Kolkata 700001
Last date for
submission of claims: June 27, 2022
DAS GARAGE: CARE Keeps B Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Das Garage Private Limited (DGPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.54 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Long Term/Short 2.46 CARE B; Stable/CARE A4;
Term Bank ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE B; Stable/CARE A4
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 30, 2021,
placed the rating(s) of DGPL under the 'issuer non-cooperating'
category as DGPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. DGPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 16, 2022, March 26, 2022, April 5, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Meerut, Uttar Pradesh based Das Garage Private Limited (DGPL) was
incorporated in 1969 by Mr. Bal Kishan Das and his son Mr. Shyam
Kishan Das. DGPL is engaged in automobile dealership of Hyundai
Motor India Limited (HMIL) for its passenger cars segment.
DQ ENTERTAINMENT INTERNATIONAL: Insolvency Resolution Case Summary
------------------------------------------------------------------
Debtor: DQ Entertainment (International) Limited
644, Aurora Colony
Road No. 3, Banjara Hills
Hyderabad, Telangana 500034
India
Insolvency Commencement Date: June 20, 2022
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: December 13, 2022
Insolvency professional: Madhusudhan Rao Gonugunta
Interim Resolution
Professional: Madhusudhan Rao Gonugunta
7-1-285, Flat No. 103
Sri Sai Swapnasampada Apartments
Balkampet, Sanjeev Reddy Nagar
Hyderabad, Telangana 500038
E-mail: madhucs1@gmail.com
dqeil2022@gmail.com
Last date for
submission of claims: June 30, 2022
GANGOUR FOODS: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: M/s Shree Gangour Foods (Jaipur) LLP
3rd floor, 'Saraf Tower'
Opposite Glass Factory
Tonk Road, Jaipur
Rajasthan 302015
Insolvency Commencement Date: June 11, 2022
Court: National Company Law Tribunal, Jaipur Bench
Estimated date of closure of
insolvency resolution process: November 26, 2022
Insolvency professional: Suresh Agrawal
Interim Resolution
Professional: Suresh Agrawal
S-1, Aastha Excellency
Triveni Nagar
Gopalpura Bypass
Jaipur 302018
E-mail: suresh.neil@gmail.com
cirp.shreegangourfoods.jaipur@
gmail.com
Last date for
submission of claims: June 25, 2022
GREENLAND MOTORS: CARE Keeps B- Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Greenland
Motors (GLM) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 30.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 12, 2021,
placed the rating(s) of GLM under the 'issuer non-cooperating'
category as GLM had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. GLM continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 26, 2022, March 8, 2022, March 18, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Greenland Motors (GLM), constituted as a partnership firm in 2005
is an authorized dealer of Maruti Suzuki India Limited (MSIL) in
select regions of Uttar Pradesh. Currently partnered by Mr. Anil
Khetrapal, Mr. Sunil Khetrapal, Mr. Arun Khetrapal and Mr Ranjan
Khetrapal, GLM operates through its E-dealer outlets located at
Pratapgarh and Kaushambi, its main showroom, true
value outlet and workshops in Allahabad and its 8 rural outlets
spread across different villages in the state of UP. The firm
derives its revenue from sales of new cars, servicing of vehicles,
sales of spare parts and trading of pre-owned cars.
HYPER FILTERATION: CARE Keeps B+ Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Hyper
Filteration Private Limited (HFPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.00 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Long Term/Short 4.00 CARE B+; Stable/CARE A4;
Term Bank ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 3.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 21, 2021,
placed the rating(s) of HFPL under the 'issuer non-cooperating'
category as HFPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. HFPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 7, 2022, March 17, 2022, March 27, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Delhi based Hyper Filteration Private Limited (HFPL) was
incorporated in 2000 by Mr. Surender Kumar Gupta and Ms. Anjana
Gupta. The company undertakes EPC (engineering, procurement and
construction) contracts for setting up zero discharge plants for
textile industry, water treatment, sewage treatment and industrial
effluents treatment plants, machinery and equipment's on turnkey
basis. The main raw materials for the company are pipes, sheets and
coils made of mild steel and stainless steel which is procured
domestically.
INDERPAL SINGH: CARE Lowers Rating on INR14cr LT Loan to B-
-----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Inderpal Singh Bhatia (ISB), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 19, 2021,
placed the rating(s) of ISB under the 'issuer non-cooperating'
category as ISB had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. ISB continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 5, 2022, March 15, 2022, March 25, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of ISB have been
revised on account of non-availability of requisite information.
M/s Inderpal Singh Bhatia was set up as a proprietorship firm by
Mr. Inderpal Singh Bhatia in the year 2007. Since its inception,
the firm has been engaged in trading of petrol, diesels, coals and
sarees. The firm is also engaged in road transportation services
from where it derives around 20% of total revenue in FY18
Provisional. The firm procures petrol and diesels from Indian Oil
Corporation Limited.
INDUS INTEGRATED: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Indus Integrated Information Management Limited
7th Floor, Raj Premiere
Plot No. 37, Block-EN Sector V
Salt Lake City, Kolkata
WB 700091
Insolvency Commencement Date: June 15, 2022
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: December 11, 2022
Insolvency professional: Kamal Nayan Jain
Interim Resolution
Professional: Kamal Nayan Jain
Klass Insolvency Resolution Professionals
Pvt. Ltd.
2/7 Sarat Bose Road
Vasundhara Apartment, 2nd Floor
Kolkata 700020
E-mail: knjain@knjainco.com
cirp.indus@gmail.com
Last date for
submission of claims: June 29, 2022
INFONET ASIA: Liquidation Process Case Summary
----------------------------------------------
Debtor: Infonet Asia Private Limited
74, Swamy Naicken Street
Chintadripet, Chennai 600002
Liquidation Commencement Date: June 8, 2022
Court: National Company Law Tribunal, Chennai Bench
Date of closure of
insolvency resolution process: December 19, 2019
Insolvency professional: Ebenezar Inbaraj D
Interim Resolution
Professional: Ebenezar Inbaraj D
397, Precision Plaza
No. 23, 3rd Floor
Anna Salai, Teynampet
Chennai 600018
E-mail: ebiadvocate@gmail.com
iaplliquidation@gmail.com
Last date for
submission of claims: July 8, 2022
J.S.R & COMPANY: CARE Lowers Rating on INR9cr LT Loan to B+
-----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
J.S.R & Company (JC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.00 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE BB-; Stable
Short Term Bank 6.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 23, 2021,
placed the rating(s) of JC under the 'issuer non-cooperating'
category as JC had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. JC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 6, 2022, February 16, 2022, February 26, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of JC have been revised
on account of non-availability of requisite information.
J.S.R & Company (JC) was established in the year 2007 as a
partnership firm by Mr. Jinna Srinivas Reddy along with other
family members. The firm is a civil contractor and has its
registered office located at Karimnagar, Telangana. JSRC is engaged
in civil construction works such as laying of roads in the state of
Telangana. The clientele of the firm includes various departments
of Telangana Government such as Roads and Building Department,
Panchayat Raj Department, etc.
K R ENTERPRISES: CARE Lowers Rating on INR6cr LT Loan to B
----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
K R Enterprises (KRE), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 7, 2021,
placed the rating(s) of KRE under the 'issuer non-cooperating'
category as KRE had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. KRE continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 21, 2022, March 3, 2022, March 13, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of KRE have been
revised on account of non-availability of requisite information.
K.R. Enterprises (KRE) was constituted as partnership firm on
October 01, 2008 by Mr. Kailash Rai Malhotra and Mr. Vivek
Malhotra. The firm has been engaged in trading of iron and steel
scrapes. The firm procures the iron and steel scraps from steel
manufactures like Caparo Engineering India Ltd, Steel Strips Wheels
Ltd etc.
K.K. SPINNERS: CARE Withdraws B+ Debt Rating on Long Term Loan
--------------------------------------------------------------
CARE Ratings Ltd. has reaffirmed and withdrawn the outstanding
ratings of 'CARE B+'; Stable ISSUER NOT COOPERATING assigned to the
bank facilities of K.K. Spinners Private Limited (KSPL)
with immediate effect.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank - Rating continues to remain
Facilities under ISSUER NOT COOPERATING
category; Reaffirmed at
CARE B+; Stable; ISSUER NOT
COOPERATING and withdrawn
The ratings factor in the constraints relating to low profitability
margins, susceptibility of the profitability margins to raw
material price volatility and foreign exchange fluctuations. The
ratings are further constrained by highly competitive and
fragmented nature of industry and inherent risk associated with the
trading business. The ratings, however, continue to take comfort
from experienced management team along with long track record of
company operations, diversified
product profile along with a favorable location of operations. The
above action has been taken at the request of K.K. Spinners Private
Limited and 'No Objection Certificate' received from
the bank(s) that have extended the facilities rated by CARE Ratings
Ltd.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Low profitability margins: The PBILDT margins of the company
remain low and stood at 2.10% in FY22 (PY: 4.08%) owing to increase
in operational and administrative costs incurred during the period.
The PAT margins also stood low at 1.09% in FY22 (PY:2.41%) due to
increase in interest and depreciation expenses.
* Susceptibility of the profitability margins to raw material price
volatility and foreign exchange fluctuations: The operations of
company are raw material intensive in nature with the material cost
constituting ~90% on an average of the total income for the last
three years. The prices of the key raw materials are fluctuating in
nature and the price variation is, at times, not completely passed
on to the customers due to competitive nature of the market. This
exposes the margins to any adverse movement in the raw material
prices. Further, the company derived ~60% of the total operating
income from export. However, the company does not hedge any of its
foreign currency exposure which also makes profitability
susceptible to any adverse movement in the foreign currency
prices.
* Highly competitive and fragmented nature of industry: Organized
sector consisting of large-scale spinning units and composite mills
is responsible for nearly 75% of installed capacity of the yarn
production and unorganized sector consisting of small-scale
spinning units account for rest of the capacity. This leads to
highly fragmented industry structure having a high level of
competition and intense pricing pressures resulting in lower
margins.
* Inherent risk associated with the trading business: The company
derived ~50% of its total operating income in FY22 from trading of
yarn. Therefore, it is exposed to the risks associated with the
trading nature of business like inherently low profitability
margins. The firm does not have any long-term sourcing and supply
contracts with its suppliers and clients.
Key Rating Strengths
* Experienced management team along with long track record of
company operations: KSPL has been engaged in the manufacturing and
trading of yarn for over two decades now. The company was
incorporated by Mr. Bachan Lal and Mr. Rakesh Bansal (Nephew of Mr.
Bachan Lal), both of whom have an industry experience of more than
two decades. Other directors of the company include Mr. Ajay Bansal
(son of Mr. Bachan Lal), who is also the current managing director
of KSPL, having an industry experience of more than two decades.
The promoters are actively involved in the day-to-day affairs of
the company and are ably supported by a team of qualified
professionals for various domains.
* Diversified product profile along with a favorable location of
operations: KSPL is engaged in the business of manufacturing and
trading of various varieties of yarns including Blended Yarn;
(cotton/polyester, cotton/linen, cotton/Tencel, cotton/modal etc.),
Compact Yarn; (100% combed/carded cotton), Slub Yarn; (with
20,40,70,140 Denier Spandex and Certified Invista Lycra Yarn) (100%
combed/carded cotton, P/C Slub, Modal and Viscose), Certified
Cotton Yarn, Value Added specialty yarn (Eli twist Yarn, Grindle
Yarn, Parallel Yarn, TFO yarn, 100% Tencel yarn, 100% bamboo yarn,
Zero twist yarn, dyed yarn), mélange yarn etc. The manufacturing
unit of the company is located in Panipat, Haryana which is a
well-established hub of textile manufacturing. The company sells
yarns through an established network of dealers primarily
in-and-around the Panipat (Haryana) region. The company benefits
from the location advantage in terms of easy accessibility to a
large customer base.
Liquidity: Adequate
The current ratio of KSPL stood at 1.23x, as on March 31, 2022,
while the quick ratio stood at 1.16x. The company has generated
gross cash accrual of INR5.35 crore in FY22 against repayment
obligation of INR0.35 cr in same year. However, the cash credit
limit availed by the company remained ~80% utilized for the
twelve-month period ended March-2022.
Incorporated in the year 1992, K.K. Spinners Private Limited (KSPL)
is a Panipat, Haryana based company engaged in the manufacturing
and trading of various varieties of yarns with an installed
capacity of 100 metric tonnes/day, as on March 31, 2020. The
product profile of the company includes Blended Yarn
(cotton/polyester, cotton/linen, cotton/Tencel, cotton/modal etc.),
Compact Yarn (100% combed/carded cotton), Slub Yarn (100%
combed/carded cotton, P/C Slub, Modal and Viscose), Certified
Cotton Yarn, Value Added specialty yarn (Eli-twist Yarn, Grindle
Yarn, Parallel Yarn, TFO yarn, 100% Tencel yarn, 100% bamboo yarn,
zero twist yarn, dyed yarn, etc.), and mélange yarn. The group
concerns of the company include Bansal Yarns Private Limited (rated
CARE B+; Stable/CARE A4; Issuer not cooperating) and Bansal
Enterprises; both engaged in the trading of cotton yarn. The
day-to-day operations of KSPL are managed by Mr. Bachan Lal, Mr.
Rakesh Bansal (Nephew of Mr. Bachan Lal) and Mr. Ajay Bansal (son
of Mr. Bachan Lal).
KAMNA MEDICAL: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Kamna
Medical Center Private Limited (KMCPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.76 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 22, 2021,
placed the rating(s) of KMCPL under the 'issuer non-cooperating'
category as KMCPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. KMCPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 8, 2022, March 18, 2022, March 28, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Kamna Medical Center Private Limited (KMC) was incorporated in
August, 2004 and operates a 250 bedded general purpose hospital in
Meerut, Uttar Pradesh. KMC was promoted by Dr. Sunil Gupta, Dr.
Pratibha Agarwal and Dr. Tanay Garga. It provides a full array of
medical services. Apart from this, the company commenced
paramedical courses in 2007 under the medical college (300 seats
per batch) named "KMC College of Nursing". The medical college is
affiliated to Chaudhary Charan Singh University (Meerut) and also
has approvals from Medical Council of India (MCI).
KREYA INFRATECH: CARE Lowers Rating on INR3cr LT Loan to D
----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Kreya Infratech Private Limited (KIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE C-; Stable
Long Term/ 6.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category and
Revised from CARE C; Stable/
CARE A4
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated May 3, 2021,
placed the rating(s) of KIPL under the 'issuer non-cooperating'
category as KIPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. KIPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 19, 2022, March 29, 2022, April 8, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The revision in ratings assigned to bank facilities of KIPL
considers the ongoing delays in debt servicing as confirmed by the
banker. The revision in rating also takes into account the
non-availability of requisite information.
Gurgaon based, Kreya Infratech Private Limited (KIPL) was
incorporated in 2015 by Mr. S.K. Chabbra, Mr. Satish Mittal and Mr.
Manu Aggarwal. The company is a turnkey contractor which provides a
comprehensive range of services including architectural planning,
designing, site survey & excavation, interior furnishings.
KRITI PRAKASHAN: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Kriti Prakashan Private Limited
Vedang Tower, Amrapali Bazar
Sector-22, Indira Nagar
Lucknow 226020
UP, India
Insolvency Commencement Date: June 13, 2022
Court: National Company Law Tribunal, Allahabad Bench
Estimated date of closure of
insolvency resolution process: December 10, 2022
(180 days from commencement)
Insolvency professional: Mr. Anil Kumar Mittal
Interim Resolution
Professional: Mr. Anil Kumar Mittal
5/99, Sector-2
Rajender Nagar, Sahibabad
Distt. Ghaziabad
Uttar Pradesh 201005
E-mail: mittalanil.ubi@gmail.com
- and -
Resurgent Resolution Professionals LLP
Unit No. 905, 9th Floor, Tower-C
Unitech Business Zone, Nirvana Country
Sector-50, Gurugram
Haryana 122018
India
E-mail: cirp.kritiprakashan@
resurgentrp.com
Last date for
submission of claims: June 30, 2022
KWALITY FEEDS: CARE Lowers Rating on INR15.17cr LT Loan to B+
-------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Kwality Feeds Limited (KFL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.17 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE BB; Stable
Short Term Bank 0.26 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated May 6, 2021,
placed the rating(s) of KFL under the 'issuer non-cooperating'
category as KFL had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. KFL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a
letter/email dated March 22, 2022, April 1, 2022, April 11, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of KFL have been
revised on account of non-availability of requisite information.
The ratings also factored decline in scale of operations and
slightly increase in debt levels during FY21.
Kwality Feeds Limited promoted by Mr. Koganti venkata Gopala
Krishna and Mr. Kaganti Anjaneyulu was incorporated in the year
1993 as a private limited company and later was converted into
public limited company. Initially, KFL got its products
manufactured by way of job works offered to Koganti Commercial
Corporation (KCC) in which promoters of KFl are partners. KFL
installed a Multi-Purpose Feed Plant to manufacture aquaculture
feeds and started commercial production from April 1996.
Presently, KFl manufactures lab animal feed, rabbit feed, fish
feed, shrimp feed, poultry feeds and cattle feed. As on August 31,
2017 the company has an installed capacity of 57200 metric tonnes
(MT). Furthermore, on April 27, 2016, the company commenced
operations of its newly established 20,000 MT Shrimp feed plant.
The company primarily undertakes processing job work in case of
shrimp feed. KFL undertakes processing work for companies such as
Goldmohur Foods and Feeds Limited, Godrej Agrovet Limited, Suguna
Poultry Farms limited, Godrej Goldcoin Aqua Feed Limited among
others. The company is a member of The Compound Feed Manufacturers
Association (CLFMA) and The Marine Products Export Developing
Authority (MPEDA) etc.
LAKSHMI TRANSCON: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Lakshmi Transcon Private Limited
2nd Floor, Meenakshi House Road no. 7
Banjara Hills, Hyderabad
TG 500034
Insolvency Commencement Date: June 3, 2022
Court: National Company Law Tribunal, Secunderabad Bench
Estimated date of closure of
insolvency resolution process: November 30, 2022
Insolvency professional: Suresh VS
Interim Resolution
Professional: Suresh VS
Plot No. 15, Sitaram Nagar
Near Diamond Point
Sikh Vilage
Secunderabad 500009
Telangana
E-mail: sureshvs2309@gmail.com
cirplakshmitrans@gmail.com
Last date for
submission of claims: June 16, 2022
MAHESHWAR HYDEL: CARE Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shree
Maheshwar Hydel Power Corporation Limited (SMHPCL) continues to
remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 451.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Non Convertible 99.20 CARE BB+ (CE); Stable;
Debentures ISSUER NOT COOPERATING;
Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed rationale and key rating drivers
CARE had, vide its press release dated March 31, 2018, placed the
rating of SMHPCL under the 'issuer non-cooperating' category as
SMHPCL had failed to provide the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SMHPCL continues to
be non-cooperative despite repeated requests for submission of
information through email dated May 10, 2022; May 20, 2022 and May
30, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating of long-term bank facilities of SMHPCL continues to
factor in the ongoing delays in servicing of debt obligations. The
rating of NCDs is based on unconditional and irrevocable corporate
guarantee provided by Power Corporation Limited (PFC). The
guarantee operates through a trustee administered structure payment
mechanism to ensure the timely repayment of principal and interest
obligations on the NCDs. The payment of interest and principal on
the said NCDs has been timely as communicated by the debenture
trustee periodically.
SMHPCL is setting-up 400 MW (10x40MW) Maheshwar Hydro Power Project
on the river Narmada at Maheshwar near Mandleshwar, Madhya Pradesh.
The project was initially conceived for setting up by the Narmada
Valley Development Authority (NVDA). Later, it was transferred to
erstwhile Madhya Pradesh State Electricity Board (MPSEB) in 1980,
before awarding it to S Kumars group (the group) as an Independent
Power Project. The group created a Special Purpose Vehicle (SPV) in
1993 in the name of SMHPCL for execution of the project. The
project entailed a total estimated cost of ~Rs. 3,939cr (originally
Rs. 2,760 cr) to be funded in a debt to equity mix of 70:30. The
long-term Power purchase agreement (PPA) for the project was signed
in 1994 with erstwhile MPSEB (succeeded by M.P. Power Management Co
Ltd as holding company for all discoms in M.P). The work on the
project which started in the year 1998-99 was stalled in September
2001 due to withdrawal of certain lenders impacting the financing
of the project. Consequently, SMHPCL approached Power Finance
Corporation (PFC) for sanction of debt and the work on the project
was started again in November 2005.
NIGOLICE TRADING: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Nigolice Trading Pvt Ltd
23A, Netaji Subhas Road
1st Floor, Room No. 8
Kolkata, West Bengal 700001
Insolvency Commencement Date: June 15, 2022
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: December 11, 2022
Insolvency professional: Neeraj Kejriwal
Interim Resolution
Professional: Neeraj Kejriwal
P-178 CIT Scheme VI M
Phoolbagan, 3rd Floor
Kolkata 700054
E-mail: nkejriwal.ip@gmail.com
nigolice.cirp@gmail.com
Last date for
submission of claims: June 29, 2022
NIRMAL LIFESTYLE: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Nirmal Lifestyle (Kalyan) Private Limited
Nirmal Lifestyle
Opp. Nirmal Nagar
LBS Magar, Mulund (W)
Mumbai 400080
Insolvency Commencement Date: June 17, 2022
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: December 13, 2022
Insolvency professional: Mr. Dilipkumar Natvarlal Jagad
Interim Resolution
Professional: Mr. Dilipkumar Natvarlal Jagad
803/804, Ashok Heights
Opp Saraswati Apartment
Nikalas Wadi Road
Near Bhuta School
Old Nagar X Road
Gundavali, Andheri East
Mumbai City, Maharashtra 400069
E-mail: dilipjagad@hotmail.com
nirmalkalyan.irp@gmail.com
Classes of creditors: Home buyers
Insolvency
Professionals
Representative of
Creditors in a class: Mr. Vithal M Dahake
603, Neelgiri Apartments
Opp. Hotel Royal Challenge
Aba Karmarkar Marg
Off Gen. A.K. Vaidya Marg
Yashodham, Goregaon East
Mumbai 400063
E-mail: vm.dahake@rediffmail.com
Mr. Satya Narayan Baheti
Flat No. 1804, Zinnia
Bldg. No. 17, Vasant Oasis
Makwana Road, Marol
Andheri-East, Mumbai 400059
E-mail: sn.baheti@rediffmail.com
Mr. Shekhar Kumar Agarwal
Flat No. 1002, 10th Floor
B Wing, Building No. 16
Mount Blank Building
Tilak Nagar, Chembur-West
Mumbai 400089
E-mail: shekhar2308@gmail.com
Last date for
submission of claims: July 1, 2022
PARANJAPE AGRO: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Paranjape Agro Products (India) Private Limited
502 Rugved Vedant Co Operative Housing Society
Wayle Nagae, Birla College Road
Kalyan West, Thane District
Maharashtra 421301
Insolvency Commencement Date: June 13, 2022
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: December 10, 2022
Insolvency professional: Ajay Marathe
Interim Resolution
Professional: Ajay Marathe
205 Sudama Yash Apartment
Off Kelkan Road
Dombivili (E) 421201
E-mail: ajaym7@rediffmail.com
- and -
201 Aadhar Height Opposite Bhagshala
Maidan Dombivili West 421202
Last date for
submission of claims: June 27, 2022
R V ENTERPRISE: CARE Lowers Rating on INR6.16cr LT Loan to B-
-------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
R V Enterprise (RVE), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.16 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 19, 2021,
placed the rating(s) of RVE) under the 'issuer non-cooperating'
category as RVE had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. RVE continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 5, 2022, March 15, 2022, March 25, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of RVE have been
revised on account of non-availability of requisite information.
Vapi-based (Gujarat) RV Enterprise (RVE), a partnership firm was
established in 2015 by Mrs. Rekha Myatra, Mrs. Neha Shah and Mr.
Satish Shah with the purpose to manufacture decorative, automotive
and marine paints. RVE had commenced commercial operations for
undertaking this job work from August, 2015 from its manufacturing
plant located at Vapi, Valsad, Gujarat with installed capacity of
1,100 metric tons per month (MTPM) as on March 31, 2018.
RAGHAV SAREES: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Raghav Sarees Private Limited
391, Block 'G' New Alipore
Kolkata WB 700053
Insolvency Commencement Date: June 13, 2022
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: December 9, 2022
Insolvency professional: CA Niraj Kumar Agrawal
Interim Resolution
Professional: CA Niraj Kumar Agrawal
Swastik Apartment, 334/157
Jessore Road, Flat No. 3H
Kolkata 700089
E-mail: nka_sa@hotmail.com
- and -
Lake View Apartment, P-887
Lake Town, Block-A, Ground Floor
Kolkata 700089
E-mail: raghav.cirp.2022@gmail.com
Last date for
submission of claims: June 27, 2022
RAVIRAJ GINNING: CARE Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Raviraj
Ginning Pressing & Oil Industries (RGPOI) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 20, 2021,
placed the rating(s) of RGPOI under the 'issuer non-cooperating'
category as RGPOI had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. RGPOI continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 6, 2022, March 16, 2022, March 26, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Morbi (Gujarat) based RGPOI, a partnership firm, was constituted in
October 2005. The key partners of the firm are Mr. Mahendra
Jhalariya and Mr. Kalyanji Jhalariya. The firm is engaged in the
cotton ginning, pressing and oil extraction business with an
installed capacity of 32 metric tonnes per day (MTPD) of cotton
bales as on March 31, 2017.
RSG EXPORTS: CARE Lowers Rating on INR31.94cr LT Loan to B+
-----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
RSG Exports Private Limited (REPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 31.94 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE BB-; Stable
Short Term Bank 40.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 6, 2021,
placed the rating(s) of REPL under the 'issuer non-cooperating'
category as REPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. REPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 20, 2022, March 2, 2022, March 12, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings have been revised on account of decline in
profitability and scale of operations and increase in the debt
level.
Incorporated in 2013, RSG Exports Private Limited (REPL) is engaged
in the processing of paddy to produce basmati and nonbasmati rice
as well as its by-products like rice bran, khudi phak and chilka
etc. The company commenced it operations in March, 2015 and
operates from its sole facility located at Ferozepur, Punjab. The
company is also engaged in the export of basmati rice.
SHIVACHAYA SUGARCANE: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shivachaya
Sugarcane Bio Products Private Limited (SSBPPL) continues to remain
in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 08, 2021,
placed the rating(s) of SSBPPL under the 'issuer non-cooperating'
category as SSBPPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement.
SSBPPL continues to be non-cooperative despite repeated requests
for submission of information through e-mails, phone calls and a
letter/email dated February 22, 2022, March 4, 2022,
March 14, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Established in December-2016, Shivachaya Sugarcane Bio-Product
Private Limited (SSPL) is a Bagalkot (Karnataka) based private
limited company registered under the Companies Act 2013 and
promoted by Mr. Anand Suryavanshi and Mrs. Swati Suryavanshi. SSPL
is setting up a jaggery manufacturing unit at Bagalkot, Karnataka.
SIAN INFRA: CARE Lowers Rating on INR6cr LT Loan to B+
------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Sian Infra And Realcon LLP (SIRL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE BB-; Stable
Short Term Bank 34.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 26, 2021,
placed the rating(s) of SIRL under the 'issuer non-cooperating'
category as SIRL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SIRL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 9, 2022, February 19, 2022, March 1, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of SIRL have been
revised on account of non-availability of requisite information.
Hyderabad based, Sian Infra And Realcon LLP (SIRL) is a partnership
firm established in 2016 by Mr. Ravinder Agarwal, Mr. Vinay
Agarwal, Mr. P. Srinivas Reddy and Mrs. P. Mamatha Reddy. The firm
is engaged in implementing water supply & treatment projects,
pipeline works, irrigation works, civil contracts and other
infrastructure related projects by undertaking tender based
contracts for the Telangana Government. The firm purchases key
inputs such as MS plates, DI pipes and water
flow meter from Jindal Power and Steel Limited, Srikalahasthi Pipes
Limited, Kedar Steel, Itron etc. HDPE pipes are procured from the
associate concern 'Premier Plastic Industries'.
SRM HOTELS: CARE Lowers Rating on INR62.68cr LT Loan to D
---------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
SRM Hotels Private Limited (SHPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 62.68 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE B+; Stable
Short Term Bank 10.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
Under ISSUER NOT COOPERATING
Category and Revised from
CARE A4
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 31, 2021,
placed the rating(s) of SHPL under the 'issuer non-cooperating'
category as SHPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SHPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 14, 2022, February 24, 2022, March 6, 2022 and June 13,
2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of SHPL have been
revised on account of on-going delays in debt servicing recognized
from Annual reports of FY20 and FY21 available from Registrar of
Companies.
SHPL, promoted by Mr. P Ravi, belongs to the SRM group based in
Chennai which has diversified interests in educational
institutions, transport services, engineering and construction,
hotels and others. SHPL primarily owns and operates two budget
categories i.e., three-star hotels in the name of SRM Hotels
(erstwhile Royal Southern Hotels) situated at Maraimalai Nagar,
Chennai and Trichy with an aggregate capacity of 170 rooms as at
the end of March 2020. The company also operates two other hotels
on lease basis in Tuticorin and Trichy. SHPL has also opened a new
hotel property under five-star category with a room inventory of
134 rooms at Guindy, Chennai named Ramada Plaza Chennai.
SUPERGARD STEELS: CARE Lowers Rating on INR10cr LT Loan to B-/A4
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Supergard
Steels Private Limited (SSPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 10.00 CARE B-/CARE A4; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 12, 2021,
placed the rating(s) of SSPL under the 'issuer non-cooperating'
category as SSPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SSPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 26, 2022, March 8, 2022, March 18, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Supergard Steels Private Limited (SSPL) was incorporated on August
10, 2018 as a private limited company by Mr. Pardeep Kumar
Aggarwal, Mr. Sudhir Singla and Ms. Mansi Kumar to setup the
business of manufacturing color coated roofing sheets, metal wall
claddings and other accessories.
SUPERSHINE ABS: CARE Lowers Rating on INR13.85cr LT Loan to B-
--------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Supershine ABS Platers Private Limited (SAPPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 13.85 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 08, 2021,
placed the rating(s) of SAPPL under the 'issuer non-cooperating'
category as SAPPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SAPPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 22, 2022, March 4, 2022, March 14, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings have been revised on account of non-availability of
requisite information. The rating also considers net loss reported
in FY21 as compared to FY20.
Incorporated in February 2004 as a private limited company by Mr.
Suresh Shah, SABS is engaged in surface finishing on various ABS
(Acrylonitrile Butadiene Styrene) plastics & metals. The services
of the company are catered to the manufacturers of pens, automobile
parts and household articles to various states & union territories
across India, viz. Pondicherry, Tamil Nadu, Maharashtra, Daman,
Goa, etc.
T. K. ROADWAYS: CARE Lowers Rating on INR9.28cr LT Loan to B
------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
T. K. Roadways (TKR), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.28 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Short Term 0.30 CARE A4; ISSUER NOT
Bank Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 7, 2021,
placed the rating(s) of TKR under the 'issuer non-cooperating'
category as TKR had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. TKR continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 21, 2022, March 3, 2022, March 13, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of TKR have been
revised on account of non-availability of requisite information.
Howrah (West Bengal) based, T. K. Roadways (TKR) was constituted as
a partnership firm on June 10, 2011. The firm is an associate
concern of Gujral Group of companies. The group is promoted by Mr.
Bhupinder Singh Gujral and engaged in transportation of LPG tankers
for the major oil companies such as Bharat Petroleum Corporation
Limited (BPCL), Indian Oil Corporation Limited (IOCL) and Hindustan
Petroleum Corporation Limited (HPCL) and hotel and restaurant
business. The group
is having 975 LPG tankers and the loading point is Haldia, West
Bengal.
THREE SIXTY: CARE Keeps B Debt Rating in Not Cooperating
--------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Three Sixty
Textiles Private Limited (TSTPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 26, 2021,
placed the rating(s) of TSTPL under the 'issuer non-cooperating'
category as TSTPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. TSTPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 9, 2022, February 19, 2022, March 1, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
"Three Sixty Business Process India Private Limited" was
established in the year 2007 and promoted by Mr. Kasi V Thiagarajan
and Mr.T. Nagappan as first directors of the company. During May
2012, the company name has changed to current nomenclature" Three
Sixty Textiles Private Limited" (TSTPL). Later in the year 2013,
the company was taken over by Mr. S Sethuramasamy, Mr.S. Parimalam,
Mr.A. Selvakumar along with their friends and family members.
Company's registered office and factory are located in
Thanneerpanthal, Coimbatore and is engaged in trading of cotton
yarn and cloth. The company has availed moratorium from March to
August 2020 amid COVID-19 RBI guidelines.
VEGA JEWELDIAM: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Vega
Jeweldiam Private Limited (VJPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 27.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 6, 2021,
placed the rating(s) of VJPL under the 'issuer non-cooperating'
category as VJPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. VJPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 20, 2022, March 2, 2022, March 12, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in 2008, Vega Jeweldiam Private Limited (VJPL,
erstwhile Amy Diam Creation Pvt. Ltd. (ACPL) which was the holding
company of Amy Diam Vega Jewellery Pvt. Ltd. (AVPL) was merged with
ACPL in Feb 2013) is engaged in business of exporting cut and
polished diamonds (up to 5 carats in size).
VINIT KNITTINGS: CARE Lowers Rating on INR7.00cr LT Loan to C
-------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Vinit Knittings Private Limited (VKPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B-; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 5, 2021,
placed the rating(s) of VKPL under the 'issuer non-cooperating'
category as VKPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. VKPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 19, 2022, March 1, 2022, March 11, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings have been revised on account of admission of VKPL for
corporate insolvency resolution process as recognised from publicly
available information i.e. NCLT order. Revision in ratings also
considers the non-availability of requisite information.
Delhi-based Vineet Knittings Private Limited (VKPL) was established
in December, 1993 as a Private Limted company and is currently
managed by Shri Sudama Arora, Shri Vaneet Arora, Shri Manoj Arora
and Smt. Rachna Arora. The firm is engaged in the manufacturing of
knitted fabrics which is used in purse and cushion covers.
VISHNU EATABLES: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Shri Vishnu Eatables (India) Ltd.
812, D Mall, 8th Floor
Netaji Subhash Palace
Pitampura, New Delhi 110034
Insolvency Commencement Date: June 10, 2022
Court: National Company Law Tribunal, Chandigarh Bench
Estimated date of closure of
insolvency resolution process: December 6, 2022
Insolvency professional: Hemanshu Jetley
Interim Resolution
Professional: Hemanshu Jetley
Ducturus Resolution Professionals
Pvt. Ltd.
SCO-818, 1st Floor
NAC, Manimajra
Chandigarh 160101
E-mail: hejetley@gmail.com
cirp.shrivishnu@ducturus.com
Mobile: : +919041700000
+919875921491
Last date for
submission of claims: June 24, 2022
VISION ROOFINGS: CARE Keeps B Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Vision
Roofings (VR) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.07 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 30, 2021,
placed the rating(s) of VR under the 'issuer non-cooperating'
category as VR had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. VR continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 13, 2022, February 23, 2022, March 5, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Karnataka based, Vision Roofings (VR) was established as a
partnership firm in the year 2014 and promoted by Mr. Vishwapratap
Shetty and Mr. Praveena Kumar. VR commenced its business operations
from July, 2014 with FY15 being first year of business operations.
The firm is engaged in manufacture of roofing and cladding sheets,
gutter, down spout pipes and flashings. These products are widely
utilized by clients across various construction industries for
building various factories, sheds, commercial and residential
sites. The firm procures its raw material of PPGI coil (pre-painted
galvanized iron) from Maharashtra and Nagpur.
VIVEKANANDA EDUCATION: CARE Lowers Rating on INR7.92cr Loan to B
----------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Vivekananda Education Trust (Medinipur) (VET), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.92 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 19, 2021,
placed the rating(s) of VET under the 'issuer non-cooperating'
category as VET had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. VET continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 5, 2022, March 15, 2022, March 25, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of VET have been
revised on account of non-availability of requisite information.
Established in March 2003, Vivekananda Education Trust (VET) was
promoted by Dr. Saumen Kumar Mahapatra and Mr. Joydev Maity for
imparting educations from Pre-nursery to Standard 12 under the
school name of "Vivekananda Mission High School" which was
established in 1999 and also B. Ed. & D. El. Ed. under the college
name of "Vivek Jyoti College" which was established in 2006 in the
city of Medinipur, West Bengal. VET also provides spoken english
classes under the name of Vivekananda Institute of Language, which
was established in 2010. VET also provide hostel to students
(Central Board of Secondary Education) under the name of D.N.
Hostel and for students (West Bengal board of Secondary Education)
under the name of Maa Sarada Hostel.
=========
J A P A N
=========
JAPAN AIRLINES: Egan-Jones Retains CCC+ Senior Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company on June 10, 2022, retained 'CCC+'
foreign currency and local currency senior unsecured ratings on
debt issued by Japan Airlines Co. Ltd. EJR also retains 'B' rating
on commercial paper issued by the Company.
Headquartered in Shinagawa City, Tokyo, Japan, Japan Airlines Co.
Ltd. provides air transportation services.
KOBE STEEL: Egan-Jones Retains B+ Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company on June 9, 2022, retained 'B+' foreign
currency and local currency senior unsecured ratings on debt issued
by Kobe Steel, Ltd.
Headquartered in Kobe, Hyogo, Japan, Kobe Steel, Ltd. is a supplier
of aluminum and copper product including core products.
MARELLI HOLDINGS: Enters Court-Led Restructuring Process
--------------------------------------------------------
Nikkei Asia reports that struggling Japanese auto parts supplier
Marelli Holdings will enter a court-led restructuring process after
failing to get creditors to back an alternative workout plan that
would have brought faster debt relief.
Nikkei relates that Marelli, a KKR-owned supplier that counts
Nissan and Stellantis as clients, plans to continue operating while
going through restructuring. But the switch to the court-led
program will delay debt forgiveness by lenders and could disrupt
business.
According to the report, Marelli's 26 institutional lenders took
part in a creditors meeting on June 24 to review the supplier's
alternative dispute resolution (ADR) procedure. The restructuring
plan, filed in March, had named KKR as the sponsor and called for
debt relief totaling JPY450 billion (US$3.3 billion). But with some
Chinese-affiliated banks raising transparency concerns, it failed
to win the unanimous support needed.
After the meeting, Marelli immediately filed for a court-led
process, which was approved that day by the Tokyo District Court,
the report notes .
"Our priority is to move the process forward quickly," the report
quotes a Marelli spokesperson as saying explaining its decision to
immediately switch to a court-led process.
A KKR spokesperson added, "We are fully prepared to extend
additional financing to Marelli, as needed, to ensure that the
company operates its business as usual through the proceedings."
Nikkei says Marelli can still move forward with the current
restructuring plan presented for the ADR process if three-fifths of
creditors based on liabilities agreed to it. Because there is
limited opposition to it, the plan is likely get the green light.
The current management can remain in place, with Marelli denying
the possibility of bringing in a new slate of executives.
But the court-led process will further delay the approval of the
restructuring plan, which was originally scheduled for the end of
May, the report notes. In addition, even if Marelli receives the
JPY450 billion debt waiver, it would still be left with liabilities
of over JPY600 billion. The capital infusion it is slated to
receive from KKR is likely to be $650 million, a fraction of the
amount needed to pay off the remaining debt.
Anxiety is spreading among suppliers, the report notes.
"We think the company will be OK for a year or two once the plan is
approved, but it is unclear what will happen after that," said an
executive at a trading house that supplies raw materials to
Marelli.
Unlike an ADR, companies that go through a court-led rehabilitation
could suffer reputational damage that could affect business
relationships, Nikkei states.
Currently automakers have been forced to cut back on production due
to the semiconductor shortage and supply disruptions caused by the
Shanghai lockdown. Marelli and other parts makers have seen orders
decline significantly.
To cope, Marelli temporarily closed three locations, including its
headquarters and research bases, on June 17, and its 15 domestic
factories have been affected by temporary suspensions, Nikkei
relates.
Marelli reported a consolidated net loss of JPY28.2 billion for the
fiscal year ended in December 2020, Nikkei discloses. It did not
disclose the results for 2021 but remained in the red for four
consecutive years, the report notes. Even if it receives debt
relief, unless the company turns around operations to start
generating profit, it will use up its new cash infusion.
Nissan, which accounts for nearly 30% of Marelli's sales, will be
vital to its recovery.
After Marelli switched to a court-led process, Nissan issued
statement June 24 expressing support, according to Nikkei.
"We will continue to work with the company as an important
partner," said Nissan.
Nikkei relates that the court-led restructuring plan currently on
the table is similar to an ADR in that debt relief will only apply
to financial liabilities. Suppliers are not expected to be affected
by the process.
At the same time, some suppliers anticipate difficulty collecting
payments in the future. For that reason, they have started
negotiations on having Nissan shoulder payments for raw materials
furnished to Marelli.
Nikkei says Nissan's consent will determine whether Marelli will be
able to maintain stable business operations. But Nissan has been
progressively distancing itself from old keiretsu companies as
well.
Another challenge to the proposed turnaround plan are the potential
hurdles to planned layoffs, the report adds. Marelli looks to cut
3,000 jobs, or just over 5% of the entire workforce. The group also
seeks to shut down sites from the 170 factories and other locations
worldwide, mainly in Europe.
Marelli has been attempting to improve efficiency in Europe in
response to weak earnings, but stiff opposition by unions have
prevented those efforts from proceeding as planned. At present, a
concrete approach to instituting structural reforms remains to be
seen, the report notes.
Marelli Holdings Co., Ltd. operates as an automotive company. The
Company provides cockpit modules, interior and electronic, thermal
systems, compressor, and heat exchange products. Marelli Holdings
also offers console, instrument panels, steering member, inverter,
blower motor, exhaust system, mufflers, rotary and variable
compressors, condensers, and radiators.
MARUI GROUP: Egan-Jones Retains BB Senior Unsecured Ratings
-----------------------------------------------------------
Egan-Jones Ratings Company on June 8, 2022, retained 'BB' foreign
currency and local currency senior unsecured ratings on debt issued
by Marui Group Co.,Ltd.
Headquartered in Tokyo, Japan, Marui Group Co.,Ltd. provides
retailing and credit card services.
RICOH COMPANY: Egan-Jones Retains BB+ Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on June 8, 2022, retained 'BB+' foreign
currency and local currency senior unsecured ratings on debt issued
by Ricoh Company, Ltd.
Headquartered in Ota City, Tokyo, Japan, Ricoh Company, Ltd.
manufactures and markets office automation equipment, electronic
devices, and photographic instruments.
SAPPORO HOLDINGS: Egan-Jones Retains B Senior Unsecured Ratings
---------------------------------------------------------------
Egan-Jones Ratings Company on June 9, 2022, retained 'B' foreign
currency and local currency senior unsecured ratings on debt issued
by Sapporo Holdings Limited. EJR also retains 'C' rating on
commercial paper issued by the Company.
Headquartered in Tokyo, Japan, Sapporo Holdings Limited produces
and sells alcoholic and non-alcoholic beverages.
UNITIKA LTD: Egan-Jones Retains CCC+ Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company on June 8, 2022, retained 'CCC+' foreign
currency and local currency senior unsecured ratings on debt issued
by UNITIKA LTD. EJR also retains 'C' rating on commercial paper
issued by the Company.
Headquartered in Osaka, Osaka, Japan, UNITIKA LTD manufactures and
sells synthetic fibers and textile products used as apparel and
industrial materials.
=====================
N E W Z E A L A N D
=====================
B B DISTRIBUTORS: Creditor' Proofs of Debt Due on Aug. 5
--------------------------------------------------------
Creditors of B B Distributors Limited and M Bal Limited are
required to file their proofs of debt by Aug. 5, 2022, to be
included in the company's dividend distribution.
B B Distributors commenced wind-up proceedings on June 16, 2022. M
Bal Limited commenced wind-up proceedings on June 22, 2022.
The company's liquidators are:
Daran Nair
Heiko Draht
Nair Draht Limited
97 Great South Road
Greenlane, Auckland 1051
HIGHLANDER NZ: Post NZD21.7MM Loss for Quarter Ended Dec. 31
------------------------------------------------------------
Otago Daily Times reports that the holding company which owns
Education Perfect has reported a loss of just over NZD21 million
for the three months to December 31, 2021.
Last year, global investment firm Kohlberg Kravis Roberts (KKR)
bought a majority stake in the Dunedin-headquartered education
technology company for NZD411 million.
According to the Companies Office website, Education Perfect is
owned by holding company Highlander NZ Ltd, which in turn is
majority owned by KKR, ODT relays.
Highlander NZ's financial report for the three months to December
31, 2021, which was recently released to the Companies Office
website, stated it had made a NZD21.7 million net loss after tax
for the period, ODT discloses.
While the company was started in June last year, it commenced
trading in September after the acquisition of Education Perfect was
settled, the report states.
Its revenue for the three months was NZD10.2 million, of which just
over NZD8 million came from the company's Australian market and
NZD1.8 million was from New Zealand. The balance came from the rest
of the world.
In December, Highlander NZ, on behalf of Education Perfect,
purchased New Zealand-based software company EdPotential.
ODT relates that the financial report revealed the company paid
just over NZD3 million for the firm.
Education Perfect was founded by Craig and Shane Smith in 2013 as a
spin-off from Language Perfect, which was launched in 2007.
It now has offices in Australia, New Zealand, Singapore and Dubai,
and is used by one million pupils and 50,000 teachers in 3000
schools across 50 countries.
In July last year, the Otago Daily Times reported that following
KKR buying into the company, seven staff were laid off after it
decided to outsource its lesson content rather than it being
created in-house.
JULIA INTERIORS: Court to Hear Wind-Up Petition on June 30
----------------------------------------------------------
A petition to wind up the operations of Julia Interiors Limited
will be heard before the High Court at Invercargill on June 30,
2022, at 11:45 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on April 27, 2022.
The Petitioner's solicitor is:
Gabrielle McGillivray
Inland Revenue
Legal Services
PO Box 1782
Christchurch 8140
METROPOLIS DESIGN: Court to Hear Wind-Up Petition on Sept. 15
-------------------------------------------------------------
A petition to wind up the operations of Metropolis Design Limited
will be heard before the High Court at Christchurch on Sept. 15,
2022, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on May 19, 2022.
The Petitioner's solicitor is:
Gabrielle McGillivray
Inland Revenue
Legal Services
PO Box 1782
Christchurch 8140
MY TEMPLAR: Creditors' Proofs of Debt Due on July 28
----------------------------------------------------
Creditors of My Templar Limited are required to file their proofs
of debt by July 28, 2022, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on June 27, 2022.
The company's liquidators are:
Rees Logan
Andrew McKay
BDO Auckland
Level 4, BDO Centre
4 Graham Street
Auckland 1010
OTAGO EXCAVATION: Faces Liquidation Bid From Quarry Company
-----------------------------------------------------------
Riley Kennedy at Otago Daily Times reports that a third liquidation
application has been filed against a company associated with the
Burns Group.
On June 21, a public notice was issued stating Southland quarry
company J Crooks & Sons Ltd had filed an application in the High
Court at Dunedin to liquidate Otago Excavation Ltd.
The Mosgiel excavation company is owned by Burns Group 2018 Ltd -
which also owns Titan Bulk Haulage and Forest Distribution and
Logistics Ltd - and latest application is the third to be filed
against one of the group's businesses this year.
In March, Lloyd Heslop Motors of Nelson filed an application to
liquidate Titan Bulk Haulage in the High Court at Dunedin. Last
month, Wellington truck parts company Multispares NZ Ltd also tried
liquidate the company. Both matters were settled out of court and
were not heard, ODT notes.
Titan Bulk Haulage had its assets repossessed last year by Kiwibank
subsidiary Kiwi Asset Finance. A report prepared by Kiwi Asset
Finance after the repossession, which was publicly available on the
Companies Office website, said Titan Bulk Haulage owed the finance
company NZD1.47 million, ODT discloses.
A source told the Otago Daily Times on June 21 Otago Excavation's
debt to the quarry company was for gravel it had bought for setting
up a yard in Bluff about three years ago.
The debt was worth about NZD280,000, the source said.
When contacted on June 21, Burns Group co-owner and managing
director Malcolm Burns initially claimed to not know about the
application or the public notice. "That's news to me . . . I'll
have to go and have a look," he said.
However, later in the afternoon of on June 21, he said the matter
had been settled.
The application will be heard this Thursday [June 30], ODT notes.
PROPELLOR PROPERTY: Court to Hear Wind-Up Petition on Sept. 15
--------------------------------------------------------------
A petition to wind up the operations of Propellor Property Services
Limited will be heard before the High Court at Christchurch on
Sept. 15, 2022, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on May 19, 2022.
The Petitioner's solicitor is:
Gabrielle McGillivray
Inland Revenue
Legal Services
PO Box 1782
Christchurch 8140
=================
S I N G A P O R E
=================
BMF BUSINESS: Court to Hear Wind-Up Petition on July 8
------------------------------------------------------
A petition to wind up the operations of BMF Business Group Pte Ltd
will be heard before the High Court of Singapore on July 8, 2022,
at 10:00 a.m.
Maybank Singapore filed the petition against the company on June
17, 2022.
The Petitioner's solicitors are:
Shook Lin & Bok LLP
1 Robinson Road
#18-00, AIA Tower
Singapore 048542
GROUP 12: Creditors' Proofs of Debt Due on July 24
--------------------------------------------------
Creditors of Group 12 Pte Ltd are required to file their proofs of
debt by July 24, 2022, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on June 20, 2022.
The company's liquidators are:
Lau Chin Huat
Yeo Boon Keong
c/o Technic Inter-Asia Pte Ltd
50 Havelock Road #02-767
Singapore 160050
OUE H-T: Creditors' Proofs of Debt Due on July 25
-------------------------------------------------
Creditors of OUE H-T Treasury Pte Ltd are required to file their
proofs of debt by July 25, 2022, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on June 15, 2022.
The company's liquidators are:
Victor Goh
Khor Boon Hong
C/o Baker Tilly TFW LLP
600 North Bridge Road
#05-01 Parkview Square
Singapore 188778
=====================
S O U T H K O R E A
=====================
SSANGYONG MOTOR: Ssangbangwool Submits Bid for Carmaker
-------------------------------------------------------
Yonhap News Agency reports that South Korean underwear company
Ssangbangwool said on June 24 it has submitted a bid for SsangYong
Motor Co. in the auction to find a new investor for the debt-laden
carmaker.
SsangYong's lead manager, the EY Hanyoung accounting firm, received
bids from interested companies for SsangYong until
3:00 p.m. on June 24. Ssangbangwool was the sole participant,
Yonhap says.
"We have suggested some meaningful conditions to acquire
SsangYong," a Ssangbangwool spokesman said without elaborating.
According the report, SsangYong plans to select the final bidder in
the stalking horse bid, in which the preliminary bidder suggests
its price for SsangYong ahead of the auction, and other bidders
submit their prices in the auction.
If a company submits a price higher than the stalking horse's
price, SsangYong will ask the stalking horse if it can pay the
highest bidding price to buy the carmaker, the report says.
In May, SsangYong selected a local consortium led by
chemical-to-steel firm KG Group as the preliminary bidder for
SsangYong, Yonhap recalls.
Last month, four firms -- KG Group, Pavilion PE, EV parts maker EL
B&T and underwear company Ssangbangwool -- competed to become the
preliminary bidder for SsangYong in the stalking horse bid. KG and
Pavilion PE formed a consortium after submitting letters of
intent.
Back then, Ssangbangwool reportedly suggested KRW380 billion
(US$292.7 million) for SsangYong, higher than the KG consortium's
KRW350 billion. Ssangbangwool confirmed their bidding price was
higher than the KG consortium's.
But SsangYong and EY Hanyoung accepted the KG-led consortium as the
preliminary bidder as the consortium beat others in terms of the
acquisition price, fundraising plans and employment guarantee
period, Yonhap notes.
According to Yonhap, the new auction comes two months after local
electric bus maker Edison Motors Co. failed to make a full payment
of KRW304.8 billion for the debt-laden carmaker by the March 25
deadline.
Yonhap says the court extended the deadline for SsangYong to find a
new owner and submit a new restructuring plan by six months until
Oct. 15.
Yonhap relates that SsangYong aims to select a preferred bidder at
the end of June, sign a deal in early July, submit its
rehabilitation plan to the court in late July and obtain the
court's approval for its restructuring plan in late August.
About SsangYong Motor
Headquartered in Kyeonggi-Do, South Korea, Ssangyong Motor Co. Ltd.
engages in the manufacture and sale of automobiles. The Company
mainly manufactures and sells recreational vehicles (RVs), sports
utility vehicles (SUVs), multi-purpose vehicles (CDVs) and
passenger cars under the brand name of Rexton Sports, Korando,
Korando Sports, Korando Turismo, Tivoli, Tivoli Air and others. The
Company also provides automobile parts. The Company distributes its
products within domestic market and to overseas markets.
Mahindra & Mahindra Ltd. acquired a 70% stake in SsangYong for
KRW523 billion in 2011 and now holds a 74.65% stake in the
carmaker.
As previously reported in the Troubled Company Reporter-Asia
Pacific, SsangYong Motor filed for court receivership on Dec. 21,
2020, as it struggled with snowballing debts amid the COVID-19
pandemic, according to Yonhap News Agency. The decision came after
SsangYong Motor failed to pay KRW60 billion (US$54.8 million) worth
of debts to its three creditor banks.
On April 15, 2021, SsangYong Motor Co. was placed under court
receivership as its Indian parent Mahindra & Mahindra failed to
attract an investor amid the prolonged COVID-19 pandemic and
its financial status is further worsening.
In November 2021, Edison Motors and SsangYong signed a memorandum
of understanding for the purchase and the Seoul Bankruptcy Court
approved the Edison-led consortium to take over SsangYong in
January. Initially, Edison planned to attract financial investors
to raise funds, but the company has been struggling with securing
enough funds for the acquisition. Consequently, SsangYong Motor
canceled the deal to sell its controlling stake to Edison Motors
due to the electric bus maker's payment failure.
=================
S R I L A N K A
=================
SRI LANKA: Economy 'Has Collapsed', Prime Minister Says
-------------------------------------------------------
The Associated Press reports that Sri Lanka's debt-laden economy
has "collapsed" after months of shortages of food, fuel and
electricity, the prime minister told lawmakers on June 22 in
comments that underscored the country's dire situation as it seeks
help from international lenders.
According to AP, Ranil Wickremesinghe told Parliament the South
Asian nation faces "a far more serious situation" than the
shortages alone, and he warned of "a possible fall to rock
bottom."
"Our economy has completely collapsed," the report quotes
Wickremesinghe as saying.
The AP says the crisis on the island of 22 million is considered
its worst in recent memory, but Wickremesinghe did not cite any
specific new developments. His comments appeared intended to
emphasize to critics and opposition lawmakers that he has inherited
a difficult task that cannot be fixed quickly.
"He's setting expectations really, really low," said Anit
Mukherjee, a policy fellow and economist at the Center for Global
Development in Washington, the AP relays.
Wickremesinghe's remarks also sent a message to potential lenders:
"You can't let a country of such strategic importance collapse,"
said Mukherjee, who noted that Sri Lanka sits in one of the world's
busiest shipping lanes.
The AP notes that the Sri Lankan economy is foundering under the
weight of heavy debts, lost tourism revenue and other effects of
the pandemic, as well as surging costs for commodities. The result
is a country hurtling towards bankruptcy, with hardly any money to
import gasoline, milk, cooking gas and toilet paper.
Lawmakers from the two main opposition parties boycotted Parliament
last week to protest Wickremesinghe, who became prime minister just
over a month ago and is also finance minister, for failing to
deliver on his pledges to turn the economy around, according to the
AP.
The AP relates that Wickremesinghe said Sri Lanka is unable to
purchase imported fuel due to heavy debt owed by its petroleum
corporation.
The Ceylon Petroleum Corporation is $700 million in debt, he told
lawmakers. "As a result, no country or organization in the world is
willing to provide fuel to us. They are even reluctant to provide
fuel for cash."
According to the report, the crisis has started to hurt Sri Lanka's
middle class, which is estimated to be 15% to 20% of the country's
urban population. The middle class began to swell in the 1970s
after the economy opened up to more trade and investment. It has
grown steadily since.
Until recently, middle-class families generally enjoyed economic
security. Now those that never had to think twice about fuel or
food are struggling to manage three meals a day.
"They have really been jolted like no other time in the last three
decades," AP quotes Bhavani Fonseka, a senior researcher at the
Centre for Policy Alternatives in Colombo, Sri Lanka's capital, as
saying. "If the middle class is struggling like this, imagine how
hard hit the more vulnerable are," Fonseka added.
The AP says the situation has derailed years of progress toward
relatively comfortable lifestyles aspired to across South Asia.
Government officials have been given every Friday off for three
months to save on fuel and grow their own fruits and vegetables.
The inflation rate for food is 57%, according to official data.
The report notes that Wickremesinghe took office after days of
violent protests over the country's economic crisis forced his
predecessor to step down. On June 22, he blamed the previous
government for failing to act in time as Sri Lanka's foreign
reserves dwindled.
The foreign currency crisis has crimped imports, creating the
severe shortages that also include medicine and forcing people to
stand in long lines to obtain basic needs.
"If steps had at least been taken to slow down the collapse of the
economy at the beginning, we would not be facing this difficult
situation today. But we lost out on this opportunity. We are now
seeing signs of a possible fall to rock bottom," Wickremesinghe, as
cited by the AP, said.
So far, Sri Lanka has been muddling through, mainly supported by $4
billion in credit lines from neighboring India. But Wickremesinghe
said India would not be able to keep Sri Lanka afloat for long, the
report relays.
It also has received pledges of $300 million to $600 million from
the World Bank to buy medicine and other essential items.
Sri Lanka has already announced that it is suspending repayment of
$7 billion in foreign debt due this year, pending the outcome of
negotiations with the International Monetary Fund on a rescue
package. It must pay $5 billion on average annually until 2026.
Wickremesinghe said IMF assistance seems to be the country's only
option now, AP relays. Officials from the agency are visiting Sri
Lanka to discuss the idea. A staff-level agreement is likely to be
reached by the end of July.
"We have concluded the initial discussions, and we have exchanged
ideas on various sectors," Wickremesighe said, notes the report.
Representatives of financial and legal advisers to the government
on debt restructuring are also visiting the island, and a team from
the U.S. Treasury will arrive next week, he said, AP adds.
As recently reported in the Troubled Company Reporter-Asia Pacific,
S&P Global Ratings, on May 27, 2022, affirmed its long-term and
short-term foreign currency sovereign ratings on Sri Lanka at
'SD/SD.' At the same time, S&P affirmed its 'CCC-' long-term and
'C' short-term local currency sovereign ratings. The outlook on the
local currency ratings remains negative.
In addition, S&P lowered to 'D' from 'CC' the issue ratings on the
following bonds with missed interest payments in May:
-- US$1.5 billion, 6.85% bonds due Nov. 3, 2025.
-- US$1.5 billion, 6.20% bonds due May 11, 2027.
S&P's transfer and convertibility assessment at 'CC' is unchanged.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2022. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***