/raid1/www/Hosts/bankrupt/TCRAP_Public/220630.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, June 30, 2022, Vol. 25, No. 124
Headlines
A U S T R A L I A
KONG HWA: Second Creditors' Meeting Set for July 5
KONG HWA: Second Creditors' Meeting Set for July 6
MAROOCHY COACH: First Creditors' Meeting Set for July 7
OLYMPUS 2022-1: S&P Assigns Prelim BB (sf) Rating to Class E Notes
RMT SECURITISATION NO.7: S&P Affirms 'BB' Rating on Class B Notes
C H I N A
SHANDONG RUYI: Creditors Take Full Control of Lycra
I N D I A
ALM METALS: CRISIL Keeps D Debt Ratings in Not Cooperating
ARK INDUSTRIES: CRISIL Keeps D Debt Ratings in Not Cooperating
ETERNAL MOTORS: CRISIL Keeps D Debt Ratings in Not Cooperating
FUTURE RETAIL: NCLT Reserves Order on Amazon Bid vs. Insolvency
GANPATI ALLIED: Liquidation Process Case Summary
GAYATRI SUGARS: CRISIL Hikes Rating on INR39.47cr Loan to B-
GLOBAL HEALTH: CRISIL Keeps D Debt Ratings in Not Cooperating
GYAN SHAKTI: CRISIL Keeps D Debt Rating in Not Cooperating
HOTEL IDA: CRISIL Keeps D Debt Ratings in Not Cooperating
HOWRAH MILLS: CRISIL Keeps D Debt Ratings in Not Cooperating
ISWARYA ENTERPRISES: CRISIL Keeps D Ratings in Not Cooperating
JAY DEE: CRISIL Keeps D Debt Ratings in Not Cooperating Category
JBS ENGINEERING: CRISIL Keeps D Debt Ratings in Not Cooperating
KANAHYA INDUSTRIES: CRISIL Keeps D Ratings in Not Cooperating
LONDON STAR: CRISIL Keeps D Debt Ratings in Not Cooperating
MAA SARADESWARI: CRISIL Keeps D Debt Ratings in Not Cooperating
MARIA RUG: CRISIL Keeps D Debt Ratings in Not Cooperating
MUNISH FORGE: CRISIL Keeps D Debt Ratings in Not Cooperating
NUI PULP: CRISIL Keeps D Debt Ratings in Not Cooperating Category
S.K. RICE: CRISIL Keeps D Debt Rating in Not Cooperating Category
S.K. SOLVEX: CRISIL Assigns B+ Rating to INR19.6cr Cash Loan
SAIBABA JEEVANDHARA: CRISIL Keeps D Rating in Not Cooperating
SAIDEEP CARS: CRISIL Keeps C Debt Ratings in Not Cooperating
SANMATI EDIBLE: CRISIL Assigns B Rating to INR8cr Cash Loan
SIMPA ENERGY: Voluntary Liquidation Process Case Summary
TEJASWINI ENGINEERING: Liquidation Process Case Summary
VAISHNO FLOUR: CRISIL Reaffirms B Rating on INR6cr Loans
VARDHMAN RICE: Liquidation Process Case Summary
VENUS ROLLING: Liquidation Process Case Summary
VISWAM EDUCATIONAL: CRISIL Keeps D Ratings in Not Cooperating
J A P A N
TOSHIBA CORP: Watahiki Resigns After Activist Directors Join Board
N E W Z E A L A N D
BD HOMES: Court to Hear Wind-Up Petition on July 22
C & W DEVELOPMENTS: Court to Hear Wind-Up Petition on July 8
NEW DRAGON: Court to Hear Wind-Up Petition on July 22
RATI MANJARI'S: Creditors' Proofs of Debt Due on July 30
REMUERA CENTRAL: Creditors' Proofs of Debt Due on Aug. 19
S I N G A P O R E
BPEA IV: Creditors' Proofs of Debt Due on July 27
BUILDER MAX-CONSORTIUM: Court to Hear Wind-Up Petition on July 15
CREDO I: Creditors' Proofs of Debt Due on July 29
EFKA SINGAPORE: Creditors' Meeting Set for July 8
NATURGY LNG: Creditors' Proofs of Debt Due on July 29
NUTRYFARM INTERNATIONAL: Placed Under Judicial Management
TEE INTERNATIONAL: DBS Enters Agreement to Sell 33CNC
S R I L A N K A
SRI LANKA: Under Virtual Lockdown With Fuel Supplies Halted
- - - - -
=================
A U S T R A L I A
=================
KONG HWA: Second Creditors' Meeting Set for July 5
--------------------------------------------------
A second meeting of creditors in the proceedings of Kong Hwa
Laundry (Sydney) Pty. Ltd. (As Trustee For 'Q and V Discretionary
Trust') has been set for July 5, 2022, at 12:00 p.m. via electronic
facilities (Microsoft Teams meeting).
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by July 5, 2022, at 5:00 p.m.
Peter Gountzos and Timothy James Brace of SV Partners were
appointed as administrators of Kong Hwa Laundry on May 31, 2022.
KONG HWA: Second Creditors' Meeting Set for July 6
--------------------------------------------------
A second meeting of creditors in the proceedings of Kong Hwa
Laundry Australia Pty Ltd (As Trustee For 'Kong Hwa Laundry
Australia Trust') and Kong Hwa Laundry Australia (Mel) Pty Ltd (As
Trustee For 'Kong Hwa Laundry Australia (Mel) Trust') has been set
for July 6, 2022, at 10:00 a.m. and 11:00 a.m., respectively, via
electronic facilities (Microsoft Teams meeting).
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by July 5, 2022, at 5:00 p.m.
Peter Gountzos and Timothy James Brace of SV Partners were
appointed as administrators of Kong Hwa Laundry Australia on May
31, 2022.
MAROOCHY COACH: First Creditors' Meeting Set for July 7
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Maroochy
Coach House Holdings Pty Ltd (trading as Maroochy River Bungalows,
Maroochy River Resort and Bungalows, and Maroochy Waterfront Camp
and Conference Centre) will be held on July 7, 2022, at 9:00 a.m.
via virtual meeting.
Helen Newman and Andrew Fielding of BDO Business Restructuring were
appointed as administrators of Maroochy Coach on June 27, 2022.
OLYMPUS 2022-1: S&P Assigns Prelim BB (sf) Rating to Class E Notes
------------------------------------------------------------------
S&P Global Ratings assigned its preliminary ratings to six classes
of prime residential mortgage-backed securities (RMBS) to be issued
by Perpetual Corporate Trust Ltd. as trustee of Olympus 2022-1
Trust. Olympus 2022-1 Trust is a securitization of prime
residential mortgages originated by Athena Mortgage Pty Ltd.
(Athena). This is the first standalone RMBS transaction rated by
S&P Global Ratings consisting fully of loans originated by Athena.
The preliminary ratings S&P has assigned to the floating-rate RMBS
reflect the following factors.
The credit risk of the underlying collateral portfolio and the
credit support provided to each class of notes are commensurate
with the ratings assigned. Note subordination and excess spread
provide credit support. S&P's assessment of credit risk considers
Athena's underwriting standards and approval process. Its
assessment also takes into account Athena's servicing and
underwriting standards.
The rated notes can meet timely payment of interest and ultimate
payment of principal under the rating stresses. Key rating factors
are the level of subordination provided, the provision of a
liquidity facility, a loss reserve partially funded at transaction
close and built up from excess spread, the principal draw function,
and the provision of an extraordinary expense reserve. S&P's
analysis is on the basis that the rated notes are fully redeemed
via the principal waterfall mechanism under the transaction
documents by their legal final maturity date, and its assumes the
notes are not called at or beyond the call-option date.
S&P's ratings also consider the counterparty exposure to National
Australia Bank Ltd. as bank account provider and Westpac Banking
Corp. as the liquidity facility provider and interest-rate swap
provider. The transaction documents for the facilities include
downgrade language consistent with S&P Global Ratings' counterparty
criteria.
S&P has also factored into its ratings the legal structure of the
trust, which is established as a special-purpose entity and meets
our criteria for insolvency remoteness.
Preliminary Ratings Assigned
Olympus 2022-1 Trust
Class A1, A$360.00 million: AAA (sf)
Class A2, A$22.80 million: AAA (sf)
Class B, A$5.60 million: AA (sf)
Class C, A$4.40 million: A (sf)
Class D, A$2.80 million: BBB (sf)
Class E, A$2.40 million: BB (sf)
Class F, A$2.00 million: Not rated
RMT SECURITISATION NO.7: S&P Affirms 'BB' Rating on Class B Notes
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'BB (sf)' rating on the class B
notes issued by Perpetual Ltd. as trustee for RMT Securitisation
Trust No.7.
S&P said, "The rating action reflects our view of the credit risk
of the underlying collateral portfolio, which comprises just 62
loan accounts with a total balance of A$3.75 million as of April
2022.
"The top 10 borrowers in the pool by loan size account for about
60% of the portfolio balance. We have therefore sized an alternate
loss scenario for the pool. Under this scenario, the top two loans
at the 'BB' rating level default and are recovered upon. The loss
severity for each loan is the higher of 50%, the loan's loss
severity, and the pool's weighted-average loss severity. The
expected loss for the pool is the higher of that outcome, and the
result sized by applying our standard credit analysis as per our
"Australian RMBS Rating Methodology And Assumptions" criteria,
published Sept. 1, 2011.
"Tail risk takes greater precedence in transactional performance
and our rating analysis as outstanding assets and notes decrease
significantly. Yield strain could occur as the portfolio continues
to amortize, given the trust's ability to generate sufficient
income to cover expenses and losses is reduced with the smaller
remaining pool balance. We also take the view that despite the
transaction currently generating sufficient levels of excess spread
under our cash-flow modeling in the medium term, potential adverse
economic conditions and changing circumstances (event risk) at the
tail end could weaken the capacity for the trust to meet financial
commitments as the pool becomes smaller and more concentrated.
"However, asset performance has been stable since our previous
review, with low arrears and no loans under COVID-19 hardship
arrangements as of April 2022. Losses to date have been low and
covered either through excess spread or by lenders' mortgage
insurance, which is provided for all loans in the transaction."
The pool's average loan size is A$64,000 and the current
weighted-average loan-to-value ratio is 42%. The weighted-average
seasoning for the loans remaining in the pool is greater than 16
years.
=========
C H I N A
=========
SHANDONG RUYI: Creditors Take Full Control of Lycra
---------------------------------------------------
Reuters reports that U.S. fiber maker Lycra has gained new
ownership, with creditors of its former parent company Shandong
Ruyi Technology Group (Ruyi) taking full equity control after the
Chinese fashion conglomerate defaulted on a $400 million loan.
According to Reuters, the new owners consist of Hong Kong-based
China Everbright Ltd, Tor Investment Management and Seoul-based
private equity firm Lindeman Partners and its affiliate Lindeman
Asia.
"We have implemented swiftly the proactive steps required to
protect and strengthen the future of The LYCRA Company and to
insulate the Company fully from its former shareholder's financial
distress," the new owners said in a statement.
Reuters relates that Lycra CEO Julien Born said in a separate
statement: "the new ownership structure provides the necessary
backing from experienced professionals who share our long-term
vision."
Ruyi bought control of Lycra from U.S. conglomerate Koch Industries
for $2.6 billion in 2019, borrowing about $1 billion for the deal,
the report notes.
Reuters says the Chinese fashion firm set out to create a global
luxury clothing empire, embarking on a buying spree that included
London-based suitmaker Aquascutum, Paris-based fashion house
Cerruti 1881 and fashion group SMCP.
But the conglomerate has struggled under the weight of its debt and
its financial difficulties worsened with the COVID-19 pandemic, the
report notes.
About Shandong Ruyi
Shandong Ruyi Technology Group Co., Ltd, manufactures textile
products. The Company produces rabbit hair spinning yarns, cotton
textiles, dyeing fabrics, knitting yarns, and other products.
Shandong Ruyi Technology Group also operates entity investment,
import and export, and other businesses.
As reported in the Troubled Company Reporter-Asia Pacific on May
11, 2022, Moody's Investors Service has withdrawn Shandong Ruyi
Technology Group Co., Ltd.'s Caa3 corporate family rating and the
Ca senior unsecured rating on the notes issued by Prime Bloom
Holdings Limited and guaranteed by Shandong Ruyi. Prior to the
withdrawal, the ratings outlook was negative.
=========
I N D I A
=========
ALM METALS: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of ALM Metals
and Alloys Limited (ALM) continue to be 'CRISIL D/CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.22 CRISIL D (Issuer Not
Cooperating)
Cash Credit 3.5 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 6 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 9.06 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 1.22 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with ALM for
obtaining information through letters and emails dated March 28,
2022 and May 24, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of ALM, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ALM
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
ALM continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Incorporated in 2010-11, ALM commenced production in February 2012.
The company manufactures aluminium ingots from aluminium scraps,
for use in the automobile industry. The company is part of
Dubai-based AnM group which runs 6-7 similar units in the Middle
East, the US and South Africa. Operations are managed by promoters
Mr. Asif Rab and Mr. Pragnesh Patel. The company's facilities are
located in Rajkot, Gujarat.
ARK INDUSTRIES: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of ARK
Industries Private Limited (Ark; part of the Delta group) continue
to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 15 CRISIL D (Issuer Not
Cooperating)
Cash Credit 5 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 11 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 14 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 10 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with Ark for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of Ark, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on Ark
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
Ark continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
For arriving at the ratings, CRISIL Ratings has combined the
business and financial risk profiles of Delta Iron and Steel
Private Limited (Delta) and Ark. This is because the two companies,
together referred to as the Delta group, have a common management
and are in the same business. Moreover, Delta holds 20.62% equity
share in Ark.
The Delta group is promoted by Mr. Akshay Jain and Mr. Dhanesh
Mehta. Based in Mumbai and incorporated in 1996, Delta trades in
hot-rolled coils and sheets, and plates. Ark, established in 2004,
processes, warehouses, and trades in hot-rolled and cold-rolled
steel products.
ETERNAL MOTORS: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Eternal Motors Private Limited (EMPL) to 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Long Term Loan 1.5 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Long Term Loan 0.45 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Long Term 0.05 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with EMPL for
obtaining information through letters and emails dated April 29,
2022 and May 30, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of EMPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on EMPL
is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the rating on
bank facilities of EMPL to 'CRISIL D Issuer not cooperating'.
EMPL was incorporated in 1998. It is an authorized dealer of Maruti
Suzuki India Limited (MSIL) passenger and commercial vehicles.
FUTURE RETAIL: NCLT Reserves Order on Amazon Bid vs. Insolvency
---------------------------------------------------------------
The Economic Times reports that the National Company Law Tribunal
(NCLT) on June 27 reserved its order on the petition filed by
Amazon opposing Bank of India's plea to initiate insolvency
resolution proceedings against debt-ridden Future Retail Ltd (FRL).
After hearing the arguments of Amazon and Bank of India (BoI) on
June 27, the tribunal directed the e-retailer to submit its written
response to the lender's submission by June 30.
The Mumbai bench of the NCLT, headed by Pradeep Narhari Deshmukh
and Shyam Babu Gautam, reserved the order on the matter, ET says.
In April this year, BoI had moved the tribunal seeking to initiate
insolvency resolution proceedings against FRL, which has defaulted
on loan repayments, the report recalls.
ET relates that Amazon had argued that FRL did not honour the
Singapore Emergency Arbitrator's award of October 2020 and that the
lenders could not have entered into a framework agreement with FRL
in breach of the award.
The e-retailer had moved the Emergency Arbitrator in Singapore for
alleged breach of contract by FRL.
According to ET,BoI had submitted that the lender's plea against
FRL has no connection with Amazon as the proceedings are in line
with the Reserve Bank of India (RBI) guidelines and the provisions
of the Insolvency and Bankruptcy Code (IBC).
Opposing BoI's plea, Amazon, on May 12, filed an intervention
application under Section 65 of the IBC that deals with provisions
relating to penalty for fraudulent or malicious initiation of
proceedings.
FRL has defaulted on payment of INR5,322.32 crore to its lenders
amid the ongoing litigations with Amazon and other related issues.
Future Group's proposed deal with Reliance, which was opposed by
Amazon, also fell through, ET discloses.
In March, BoI through a public notice claimed its charge over the
assets of FRL and warned the public against dealing with assets of
the Kishore Biyani-led Future group firm.
BoI is the lead lender for FRL.
About the case, Dhir and Dhir Associates' Associate Partner Ashish
Pyasi opined that if the tribunal is satisfied that there is a debt
and default and the proceedings are not filed for any purpose other
than the resolution of the corporate debtor, then the petition
against the debtor will be admitted.
"Generally, the third parties have no right or say in the
insolvency proceedings and the intervention in most of the cases is
rejected as the main parties to the proceedings are the petitioner
and respondent. Therefore, the intervention of Amazon for rejection
of the BoI petition will be tested on the above criteria," he
added.
About Future Group
Future Group operates multi-branded retail outlets. The company's
retail chains include department stores, outlet stores, sportswear,
home improvement and consumer durables, supermarket, and
convenience stores as well as food parks.
Cash-strapped Future Group owes around INR19,000 crore to banks and
INR6,000 crore to the vendors. Future Retail Limited owes INR6,278
crore debt with 28 banks, including SBI, Union Bank, Bank of India,
Bank of Baroda, Axis Bank, and IDBI Bank, among others.
Future, India's second-largest retailer, has sought to complete its
AUD3.4 billion retail asset sale to Reliance Retail since 2020. The
Indian Supreme Court has upheld the Singapore Emergency
Arbitrator's award against Reliance Retail's takeover of Future
group companies.
GANPATI ALLIED: Liquidation Process Case Summary
------------------------------------------------
Debtor: Ganpati Allied Works Private Limited
162, Light Industrial Area
Chhaoni, Bhilai
Chhattisgarh 490001
Liquidation Commencement Date: June 22, 2022
Court: National Company Law Tribunal, Cuttack Bench
Date of closure of
insolvency resolution process: June 21, 2022
Insolvency professional: Dr. Bankim Shukla
Interim Resolution
Professional: Dr. Bankim Shukla
C/o ADB & Company, First Floor
Mahavir Gaushala Complex
K.K. Road, Moudhapara
Raipur 492001
E-mail: bankimshukla2016@gmail.com
liquidation.gawpl@gmail.com
Last date for
submission of claims: July 21, 2022
GAYATRI SUGARS: CRISIL Hikes Rating on INR39.47cr Loan to B-
------------------------------------------------------------
CRISIL Ratings has upgraded its rating on the long-term bank
facilities of Gayatri Sugars Limited (GSL) to 'CRISIL B-/Stable'
from 'CRISIL D'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 39.47 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Cash Credit 11.22 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Cash Credit 13.43 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Cash Credit 3.47 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Proposed Long Term
Bank Loan Facility 68.41 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
The rating upgrade reflects timely debt servicing by GSL for more
than 90 consecutive days and expected sustenance of improved
liquidity over the medium term. The rating action also factors in
the approval received for restructuring of Sugar Development Fund
(SDF) loan along with sanction of moratorium of 2 years (till May
2024) on both principal and interest payments which is expected to
aid the liquidity & financial flexibility. Bank limit utilization
remained at 98% for the past 6 months ending May 2022, the main
seasonal months for the company, and will remain a monitorable
going forward. Ability of the company to ramp up revenues and
maintain operating level profits will also remain key monitorable.
The rating reflects GSL's weak financial risk profile, large
working capital requirement and exposure to risks related to the
regulated sugar industry. These weaknesses are partially offset by
the extensive experience of the promoters and integrated nature of
operations.
Key Rating Drivers & Detailed Description
Weaknesses:
* Weak financial risk profile: Networth was negative at around
INR162 crore as of March 31, 2022, due to sizeable accumulated
losses in the past resulting in a weak capital structure. Debt
protection metrics have also remained subdued because of low
operating margin and high reliance on debt.
* Large working capital requirement: Operations are working capital
intensive, as reflected in gross current assets of 115 days as on
March 31, 2022, driven by inventory of around 65 days.
* Exposure to regulatory risks in the sugar industry: The sugar
industry in India is regulated by several government policies,
including sugarcane prices, export and import of sugar and the
sugar release mechanism. These regulations constrain the credit
quality of players in the industry.
Strengths:
* Extensive experience of the promoters: The two-decade-long
experience of the promoters will continue to support the business
risk profile. Further the company also benefits from the fund
support extended by the promoters.
* Integrated operations: Company's operations are fully integrated
with sugar mills, distillery, and power generation units, whereby
the by-products of sugar manufacturing process like molasses and
bagasse are converted into Ethanol/Rectified Spirit and power
respectively. Also, the recovery rate has remained above average at
10.5-11.5% in the past.
Liquidity: Stretched
GSL had reported cash losses in the past resulting in poor
liquidity. However, in fiscal 2022, the performance has improved,
and it reported net cash accrual of INR1.3 crore supported by
higher crushing and better recovery rates and realisations. This
has supported the liquidity and the company has repaid all the term
loans outstanding with banks as per the repayment schedule.
Further, restructuring of SDF loan with a moratorium of 2 years
(till May 2024) supports its liquidity. The repayment of the last
instalment of NCDs is due only in March 2023 which is expected to
be met from internal accruals.
Outlook: Stable
CRISIL Ratings believes GSL will continue to benefit over the
medium term from its promoters' extensive experience and integrated
nature of operations.
Rating Sensitivity factors
Upward factors
* Better cane crushing & higher recovery rate leading to
higher-than-expected accruals and better liquidity
* Sustenance of operating margin at around 8-9%
Downward factors
* Lower than expected revenue along with decline in operating
margin to around 3-4%
* Any large debt-funded capital expenditure weakening the financial
risk profile & liquidity
GSL, based in Hyderabad, was incorporated in in 1995 by Ms Indira
Subbarami Reddy, Mr. Sandeep Reddy and Ms Sarita Reddy. The company
manufactures white crystal sugar and rectified spirit/extra neutral
alcohol. The sugarcane crushing capacity is 7,000 tons per day
while the distillery and co-generation units have 45 kilolitre per
day and 25-megawatt capacities respectively. The company is listed
on the Bombay Stock Exchange.
GLOBAL HEALTH: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Global Health
Research and Management Institute (GHRMI) continue to be 'CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 70 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 40 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with GHRMI for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of GHRMI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on GHRMI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
GHRMI continues to be 'CRISIL D Issuer Not Cooperating'.
GHRMI is a registered society under Rajasthan Society Registration
Act. They are setting up a Multi-Specialty Hospital named Pacific
Institute of Medical Science at Udaipur, Rajasthan with 750 beds
and medical college offering MBBS course with Students intake of
150 p.a. at Udaipur.
GYAN SHAKTI: CRISIL Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Gyan Shakti
Education Welfare Trust (GSEWT) continues to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 10 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with GSEWT for
obtaining information through letters and emails dated March 14,
2022 and May 24, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of GSEWT, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on GSEWT
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
GSEWT continues to be 'CRISIL D Issuer Not Cooperating'.
Incorporated in December 2013, with the registered office in New
Delhi, GSEWT has set up a public school'affiliated to the Central
Board of Secondary Education'at Crossings Republik, Ghaziabad,
Uttar Pradesh.
HOTEL IDA: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Hotel IDA
continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft Facility 2 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term
Bank Loan Facility 3 CRISIL D (Issuer Not
Cooperating)
Term Loan 5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with Hotel IDA
for obtaining information through letters and emails dated March
14, 2022 and May 10, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of Hotel IDA, which restricts
CRISIL Ratings' ability to take a forward-looking view on the
entity's credit quality. CRISIL Ratings believes that rating action
on Hotel IDA is consistent with 'Assessing Information Adequacy
Risk'. Based on the last available information, the ratings on bank
facilities of Hotel IDA continue to be 'CRISIL D/CRISIL D Issuer
Not Cooperating'.
Set up as a partnership firm by Mr. Rabinder Aurora, Mr. Ratik
Aurora, and Mr. Maneet Aurora, Hotel IDA runs a hotel in Dehradun.
HOWRAH MILLS: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Howrah Mills
Co. Limited (HMCL) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.78 CRISIL D (Issuer Not
Cooperating)
Bank Guarantee 6.22 CRISIL D (Issuer Not
Cooperating)
Cash Credit 34.80 CRISIL D (Issuer Not
Cooperating)
Cash Credit 17.60 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 14 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 6 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 1.02 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 3.58 CRISIL D (Issuer Not
Cooperating)
Term Loan 15 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with HMCL for
obtaining information through letters and emails dated March 28,
2022 and May 24, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of HMCL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on HMCL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
HMCL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
HMCL, set up in 1890, manufactures jute products with a capacity of
44,000 tonnes per annum. The company manufactures a wide range of
products, including hessian, jute yarn, jute cloth, and decorative
bags. It has leased out warehouses built on part of its land-bank,
and receives an annual rental income of around INR45 million.
ISWARYA ENTERPRISES: CRISIL Keeps D Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Iswarya
Enterprises (IE) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft Facility 9 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with IE for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of IE, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on IE is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of IE
continue to be 'CRISIL D Issuer Not Cooperating'.
Formed in 2004 as a partnership firm, IE is engaged in processing
of groundnut kernels. The firm is based out of Nallacheruvu, Andhra
Pradesh and is promoted by Mr. Ramanath.
JAY DEE: CRISIL Keeps D Debt Ratings in Not Cooperating Category
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Jay Dee
Enterprises (JDE) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 8.2 CRISIL D (Issuer Not
Cooperating)
Export Packing
Credit 3 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with JDE for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of JDE, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on JDE
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
JDE continue to be 'CRISIL D Issuer Not Cooperating'.
Promoted by Mr. Pawandeep Sachdeva, JDE is engaged in manufacturing
and exports of the ready-made garments.
JBS ENGINEERING: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of JBS
Engineering Works (JEW) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.7 CRISIL D (Issuer Not
Cooperating)
Term Loan 1.42 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with JEW for
obtaining information through letters and emails dated March 28,
2022 and May 24, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of JEW, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on JEW
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
JEW continue to be 'CRISIL D Issuer Not Cooperating'.
JBS Engineering Works (JEW) was set up in 2010 as a partnership
firm by Sharma and Banyal family. The firm is engaged in the
manufacturing of auto components parts for the Tier I vendors of
Hero Moto Corp and Mahindra and Mahindra. The partners of the firm
are Mr. D.S. Sharma, Mrs. Laxmi Sharma, Mr. Deepak Banyal, Mrs.
Suman Banyal and M/S India Micro Private Limited.
KANAHYA INDUSTRIES: CRISIL Keeps D Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Kanahya
Industries (KI) continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.5 CRISIL D (Issuer Not
Cooperating)
Proposed Fund- 5.1 CRISIL D (Issuer Not
Based Bank Limits Cooperating)
Term Loan 0.3 CRISIL D (Issuer Not
Cooperating)
Term Loan 1.1 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with KI for
obtaining information through letters and emails dated March 14,
2022 and May 24, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of KI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KI is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of KI
continues to be 'CRISIL D Issuer Not Cooperating'.
KI is a proprietorship firm set up by Mr. Pawan Kumar Sharma in
2009, KI manufactures polyurethane (PU) foam sheets used in sofas,
mattresses and cushions. KI has a manufacturing unit and 2
warehouse in Una District, Himachal Pradesh.
LONDON STAR: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of London Star
Diamond Company India Private Limited (London Star) continue to be
'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Post Shipment Credit 6 CRISIL D (Issuer Not
Cooperating)
Post Shipment Credit 6.85 CRISIL D (Issuer Not
Cooperating)
Post Shipment Credit 10.8 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 14.35 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with London Star
for obtaining information through letters and emails dated March
14, 2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of London Star, which restricts
CRISIL Ratings' ability to take a forward-looking view on the
entity's credit quality. CRISIL Ratings believes that rating action
on London Star is consistent with 'Assessing Information Adequacy
Risk'. Based on the last available information, the ratings on bank
facilities of London Star continue to be 'CRISIL D Issuer Not
Cooperating'.
Set up in 1964 in Mumbai by the late Mr. S G Jhaveri, London Star
trades in polished diamonds. It is currently managed by Mr. Kamlesh
Jhaveri and his son, Mr. Rishabh Jhaveri.
MAA SARADESWARI: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Maa
Saradeswari Heemghar Private Limited (MSHPL) continue to be 'CRISIL
D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.2 CRISIL D (Issuer Not
Cooperating)
Overdraft Facility 0.7 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 3.7 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 4.4 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with MSHPL for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MSHPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MSHPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MSHPL continue to be 'CRISIL D Issuer Not Cooperating'.
Incorporated in 2012 and promoted by Mr. Shyamal Dandapat, MSHPL
provides cold storage facilities in Tamluk, West Bengal, to potato
farmers and traders; it also trades in potatoes.
MARIA RUG: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Maria Rug
International (MRI) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Purchase 4 CRISIL D (Issuer Not
Cooperating)
Packing Credit 2.5 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 0.5 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with MRI for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MRI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MRI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MRI continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
MRI was set up in 2005 as a partnership firm between Mr. Zakir
Husain Ansari and his brothers, Mr. Shabir Ahmad and Mr. Abdul
Quadir. The firm manufactures and exports rugs, carpets, and home
furnishing products made of wool, cotton, and leather under the
brand MRI.
MUNISH FORGE: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Munish Forge
Private Limited (MFPL) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 6 CRISIL D (Issuer Not
Cooperating)
Cash Credit 30 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 5.8 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 8.4 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 1.2 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 3 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with MFPL for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MFPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MFPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MFPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
For arriving at the ratings, CRISIL Ratings has now taken a
standalone approach as against earlier when the business and
financial risk profiles of MFPL, Munish International Pvt Ltd
(MIPL) and Dev Arjuna Cast & Forge Pvt Ltd (DACF) were combined.
This is because all operational linkages between MFPL and MIPL were
discontinued in January 2015. Earlier, MIPL worked as an exclusive
export arm for products manufactured by MFPL and DACF.
MFPL was incorporated in 1996 in Ludhiana, Punjab, promoted by Mr.
Davinder Bhasin and his family members. The company manufactures
flanges, auto parts, forgings, and scaffoldings.
NUI PULP: CRISIL Keeps D Debt Ratings in Not Cooperating Category
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Nui Pulp and
Paper Industries Private Limited (NPPIPL) continue to be 'CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 5 CRISIL D (Issuer Not
under Letter Cooperating)
of Credit
Packing Credit 4 CRISIL D (Issuer Not
in Foreign Cooperating)
Currency
Proposed Short 2 CRISIL D (Issuer Not
Term Bank Cooperating)
Loan Facility
CRISIL Ratings has been consistently following up with NPPIPL for
obtaining information through letters and emails dated March 14,
2022 and May 24, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of NPPIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
NPPIPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of NPPIPL continues to be 'CRISIL D Issuer Not
Cooperating'.
NPPIPL, incorporated in September 2009, manufactures and exports
polyethylene-coated cups, and stock paper rolls and cups. It
started commercial operations in May 2012. NPPIPL is based in
Chittoor (Andhra Pradesh) and is promoted by Mr. Shameel E P.
S.K. RICE: CRISIL Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of S.K. Rice
Industries (SKRI) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SKRI for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SKRI, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SKRI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SKRI continue to be 'CRISIL D Issuer Not Cooperating'.
Set up in 2009, Devenagere (Karnataka) based SKRI is a partnership
firm engaged in milling and processing of paddy into rice, rice
bran and husk. It has an installed paddy milling capacity of 3
tonnes per hour and operates in two shifts. The firm is promoted by
Mrs. Syyed Rehana along with her family members, Mr. Syyed Altaf
Ahmed and Mr.Syyed Israr Ahmed.
S.K. SOLVEX: CRISIL Assigns B+ Rating to INR19.6cr Cash Loan
------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable/CRISIL A4'
ratings to the bank facilities of S.K. Solvex Private Limited
(SKSPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 19.6 CRISIL B+/Stable (Assigned)
Overdraft Facility 5 CRISIL B+/Stable (Assigned)
Proposed Fund-
Based Bank Limits 1.76 CRISIL A4 (Assigned)
Term Loan 8.64 CRISIL B+/Stable (Assigned)
The ratings reflect the company's modest scale of operations,
subdued profitability in an intensely competitive industry, average
financial risk profile and susceptibility to volatility in raw
material prices. These weaknesses are partially offset by the
extensive experience of the promoters in the edible oil industry.
Analytical Approach
Unsecured loan of INR8.03 crore as on March 31, 2022, from the
promoters has been treated as neither debt nor equity.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations: Intense competition constrains the
scalability, as reflected in subdued revenue of INR399.43 crore in
fiscal 2022 and INR324.99 crore in fiscal 2021.
* Low profitability: Intense competition, limited value addition
and susceptibility to volatility in raw material prices constrains
the operating margin, which is expected at 1-1.4% over the medium
term.
* Average financial risk profile: Networth was modest at INR7.91
crore and gearing and total outside liabilities to tangible
networth ratio were high at 4.16 times and 4.69 times,
respectively, as on March 31, 2022. Interest coverage and net cash
accrual to total debt ratios were subdued at 1.82 times and 0.08
time, respectively, in fiscal 2022, and are expected at similar
levels over the medium term.
Strength:
* Extensive experience of the promoters: The promoters' experience
of three decades in the edible oil industry, strong understanding
of local market dynamics and healthy relationships with customers
and suppliers will continue to support the business.
Liquidity: Stretched
Expected net cash accrual of INR1.5-2 crore per annum will be
insufficient against yearly term debt obligation of INR0.4-2.8
crore over the medium term. Bank limit utilisation was high at 87%
on average during the 12 months through January 2022. Current ratio
was moderate at 1.17 times as on March 31, 2022.
Outlook: Stable
SKSPL will continue to benefit from the extensive experience of the
promoters.
Rating Sensitivity factors
Upward factors
* Increase in revenue and rise in operating margin of over 2%
leading to higher cash accrual
* Improvement in the capital structure
Downward factors
* Decline in operating margin below 1% leading to lower net cash
accrual
* Further capital withdrawal resulting in deterioration in the
financial risk profile
Incorporated in 2001, SKSPL operates a mustard oil extraction unit.
The company is promoted by Mr. Suresh Jain and his family members.
Its unit in Jaipur, Rajasthan, has seed crushing capacity of 150
tonne per day.
SAIBABA JEEVANDHARA: CRISIL Keeps D Rating in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Shree Saibaba
Jeevandhara Hospital India Private Limited (SSBJDHIPL) continues to
be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 8.8 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SSBJDHIPL
for obtaining information through letters and emails dated March
14, 2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SSBJDHIPL, which restricts
CRISIL Ratings' ability to take a forward looking view on the
entity's credit quality. CRISIL Ratings believes that rating action
on SSBJDHIPL is consistent with 'Assessing Information Adequacy
Risk'. Based on the last available information, the ratings on bank
facilities of SSBJDHIPL continues to be 'CRISIL D Issuer Not
Cooperating'.
SSBJDHIPL was set up in 2012-13 (refers to financial year, April 1
to March 31) by Mr. Anand Haldiwal, Mr. Omprakash Haldiwal, Mrs.
Rakhi Haldiwal, Dr. Jagdish Chand Yadav, Dr. Manoj Gurjar, and Dr.
Vishal Yadav. The company runs a hospital in Barwani (Madhya
Pradesh). It started operations in July 2014.
SAIDEEP CARS: CRISIL Keeps C Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Saideep Cars
Private Limited (SCPL) continue to be 'CRISIL C Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.5 CRISIL C (Issuer Not
Cooperating)
Inventory Funding 3.0 CRISIL C (Issuer Not
Facility Cooperating)
Rupee Term Loan 1.5 CRISIL C (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SCPL for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SCPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SCPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SCPL continues to be 'CRISIL C Issuer Not Cooperating'.
Incorporated in 2008, SCPL is promoted by Chopra family. The
company is dealer of passenger vehicle Renault India Pvt Ltd. in
Ahmednagar (Maharashtra). The company has 1 showroom in Ahmednagar.
The operations of the company are managed by Chopra family.
SANMATI EDIBLE: CRISIL Assigns B Rating to INR8cr Cash Loan
-----------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B/Stable/CRISIL A4' ratings
to the bank facilities of Sanmati Edible Oils Private Limited
(SEOPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL B/Stable (Assigned)
Overdraft Facility 3 CRISIL B/Stable (Assigned)
Proposed Fund-
Based Bank Limits 0.44 CRISIL A4 (Assigned)
Term Loan 4.12 CRISIL B/Stable (Assigned)
The ratings reflect the company's modest scale of operations and
subdued profitability in the intensely competitive edible oil
industry, its leveraged capital structure, and susceptibility to
volatility in raw material prices. These weaknesses are partially
offset by the extensive industry experience of the promoters.
Analytical Approach
CRISIL Ratings has considered the standalone business and financial
risk profiles of SEOPL.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations: Modest scale of operations (revenue
of INR253.24 crore in fiscal 2022 against INR210.97 crore in the
previous fiscal) constrains the business risk profile. Intense
competition due to the presence of both organised and unorganised
players in the domestic edible oil refining industry limits the
scale of operations.
* Low profitability and susceptibility to volatility in raw
material prices: Intense competition, limited value addition, and
susceptibility to volatility in raw material prices constrains the
operating margin, which is likely to remain at 0.8-1.0% over the
medium term.
* Leveraged capital structure: Modest networth of INR4.24 crore led
to high gearing and total outside liabilities to tangible networth
ratio of 4.64 times and 6.14 times, respectively, as on March 31,
2022. Interest coverage and net cash accrual to total debt ratios
were average at 2.28 times and 0.06 time, respectively, for fiscal
2022. The metrics are expected at similar levels over the medium
term.
Strength:
* Extensive experience of the promoters: The three-decade-long
experience of the promoters, their strong understanding of local
market dynamics, and healthy relationships with customers and
suppliers should continue to support the business.
Liquidity: Stretched
Expected net cash accrual of INR0.7-0.9 crore per annum will be
insufficient to meet yearly term debt obligation of INR0.4-1.25
crore over the medium term. Bank limit utilisation was moderate at
69% on average during the 12 months through January 2022. Current
ratio was moderate at 1.27 times as on March 31, 2022.
Outlook: Stable
SEOPL will continue to benefit from the extensive experience of its
promoters.
Rating Sensitivity Factors
Upward Factors
* Increase in revenue and operating margin of over 1.5% leading to
higher cash accrual
* Improvement in the capital structure
Downward Factors
* Decline in revenue by 20% and in profitability leading to lower
net cash accrual
* Further capital withdrawal resulting in deterioration in the
financial risk profile
SEOPL was incorporated as a proprietorship firm, Sanmati Edible
Oils, in 1992 to set up a mustard oil extraction unit and was
reconstituted as a private limited company with the present name in
1999. It is promoted by Mr. Suresh Jain and his family members. Its
unit in Jaipur has seed crushing capacity of 75 tonne per day
(TPD). SEOPL also trades in edible oil.
SIMPA ENERGY: Voluntary Liquidation Process Case Summary
--------------------------------------------------------
Debtor: Simpa Energy India Private Limited
Registered office:
207, Gupta Arcade
LSC Plot No. 5
Mayur Vihar Phase-I Extension
Delhi 110091
Principal office:
Unit No. B, Plot No. 8
419, 4th Floor
Noida One, Sector 62
Gautam Budh Nagar 201302
Noida, Uttar Pradesh
Liquidation Commencement Date: June 20, 2022
Court: National Company Law Tribunal, Gurgaon Bench
Insolvency professional: Amit Jain
Interim Resolution
Professional: Amit Jain
Building No. 10, Tower C
8th Floor, DLF Cyber City
Phase II, Gurgaon
Haryana 122002
E-mail: amitj1@kpmg.com
liquidatorsimpa@kpmg.com
Tel: 7678679143
Last date for
submission of claims: July 20, 2022
TEJASWINI ENGINEERING: Liquidation Process Case Summary
-------------------------------------------------------
Debtor: M/s. Tejaswini Engineering Private Limited
Plot No. 34, Nagarjuna Hils
Punjagutta, Hyderabad
TG 500082
IN
Liquidation Commencement Date: January 6, 2022
Court: National Company Law Tribunal, Hyderabad Bench
Date of closure of
insolvency resolution process: December 30, 2021
Insolvency professional: Mummneni Vazra Laxmi
Interim Resolution
Professional: Mummneni Vazra Laxmi
Flat No. G-2, Encee Residency
Nagarjuna, Nagar Colony
Yellarreddyguda
Hyderabad 500073
E-mail: emailtolak@gmail.com
- and -
Flat No. 107, V.V. Vintage Residency
Somajiguda, Hyderabad 500082
Last date for
submission of claims: December 3, 2022
VAISHNO FLOUR: CRISIL Reaffirms B Rating on INR6cr Loans
--------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B/Stable' rating on the
long-term bank facilities of Shree Vaishno Flour Mills (SVFM).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 1 CRISIL B/Stable (Reaffirmed)
The rating continues to reflect the firm's modest scale of
operations in the intensely competitive flour mill industry and its
weak financial risk profile. These weaknesses are partially offset
by the extensive experience of the partners.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations: Small scale, reflected in revenue of
INR22 crore in fiscal 2022, amid intense competition will continue
to constrain the pricing power and profitability of the firm. The
crop yield of agricultural commodities depends on favorable
climatic conditions including adequate and timely monsoon. Thus,
SVFM is exposed to the risk of limited availability of key raw
material because of adverse climatic conditions. The risk of pests
or crop infection leads to higher unpredictability in the
production and pricing of agricultural commodities and derived
products.
* Weak financial risk profile: The financial risk profile is likely
to remain constrained by large working capital debt. Gearing was
high estimated at 7.69 times as on March 31, 2022, and net worth
small at INR1.03 crore. Debt protection metrics were subdued, with
interest coverage and net cash accrual to adjusted debt ratios of
1.85 times and 0.07 time, respectively, in fiscal 2022. Financial
risk profile is expected to improve over the medium term in absence
of any debt funded capex.
Strength:
* Extensive experience of the partners: The partners' experience of
over a decade, their strong understanding of local market dynamics
and healthy relationships with suppliers and customers should
continue to support the business.
Liquidity: Stretched
Expected cash accrual of INR50-70 lakh per annum over the medium
term should comfortably cover yearly debt obligation of INR20-30
lakh and support liquidity. Bank limit utilization averaged a high
99.44% for the 12 months ended March 2022. Current ratio was
moderate at 1.24 times on March 31, 2021.
Outlook: Stable
CRISIL Ratings believes SVFM will continue to benefit from the
extensive experience of its partners.
Rating Sensitivity factors
Upward factors:
* Increase in revenue by more than 20% and a stable operating
margin
* Sizeable fund infusion by the partners
Downward factors:
* Steep decline in revenue and operating margin less than 4%
* Significant stretch in the working capital cycle or any large,
debt-funded capital expenditure
SVFM was set up in 1999 as a partnership firm in Jammu. It
processes wheat products such as atta, suji, maida and bran.
VARDHMAN RICE: Liquidation Process Case Summary
-----------------------------------------------
Debtor: Shri Vardhman Rice Mills Private Limited
Registered and Principal office:
LD-1, Pitampura
Delhi 110034
India
Factory Site:
Gohana Road, Panipat
Haryana 132103
India
Liquidation Commencement Date: June 20, 2022
Court: National Company Law Tribunal Bench IV, New Delhi
Date of closure of
insolvency resolution process: June 19, 2022
Insolvency professional: Tarun Batra
Interim Resolution
Professional: Tarun Batra
380, Sector-3 Extn.
HSIIDC, Karnal 132001
Haryana, India
E-mail: batratarun@gmail.com
cirp.shrivardhman@gmail.com
Mobile: 9729870010
Last date for
submission of claims: July 20, 2022
VENUS ROLLING: Liquidation Process Case Summary
-----------------------------------------------
Debtor: Venus Rolling Mills Pvt. Ltd.
E-8, MIDC
Butibori, Nagpur
Maharashtra 441122
Liquidation Commencement Date: June 9, 2022
Court: National Company Law Tribunal, Mumbai Bench
Date of closure of
insolvency resolution process: March 17, 2020
Insolvency professional: Devendra Singh
Interim Resolution
Professional: Devendra Singh
Assotech Business Cresterra
Office No. 216, 2nd Floor
Tower-1, Sector-135
Noida, Uttar Pradesh 201305
E-mail: dev_singh2006@yahoo.com
liquidatorvrmpl@gmail.com
Last date for
submission of claims: July 22, 2022
VISWAM EDUCATIONAL: CRISIL Keeps D Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Viswam
Educational Society (VES) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 4.15 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 0.81 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 0.04 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Secured Overdraft 4.00 CRISIL D (Issuer Not
Facility Cooperating)
CRISIL Ratings has been consistently following up with VES for
obtaining information through letters and emails dated March 14,
2022 and May 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of VES, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VES
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
VES continues to be 'CRISIL D Issuer Not Cooperating'.
VES, a society was established in 1991, and the overall operations
of the trust are being managed by its secretary Mr. Prabhakar
Reddy. It runs 5 educational institutions under the Viswam brand.
Its schools and colleges are located in and around Chittoor (Andhra
Pradesh).
=========
J A P A N
=========
TOSHIBA CORP: Watahiki Resigns After Activist Directors Join Board
------------------------------------------------------------------
The Asahi Shimbun reports that an outside director at Toshiba Corp.
resigned on June 28 soon after shareholders overrode her objections
and approved two executives of activist investment funds for the
board of the company.
Mariko Watahiki, a former chief judge at the Nagoya High Court who
was re-elected as a director at the same shareholders' meeting,
tendered her resignation soon thereafter, the report relates.
The company's board accepted her decision.
Her resignation will heighten the presence of activist investment
funds on the company's board and could accelerate Toshiba's moves
to go private, analysts said.
According to the report, Ms. Watahiki was among 13 directors
approved for the board at the shareholders meeting. Two of them are
from overseas activist investment funds, both major shareholders of
Toshiba.
Ms. Watahiki had opposed their nominations, saying they would lack
impartiality, the report says.
On June 6, when asked about the nominations of the two executives,
Ms. Watahiki told reporters, "I cannot help but say it appears the
move (nominations) is biased toward certain shareholders."
Toshiba is considering going private by enabling an investment fund
or others to buy its shares, the report notes.
Analysts believe that some activist shareholders want Toshiba to go
private this way because the buyer will likely purchase their
Toshiba shares at a premium.
Four directors chosen in 2019 on the recommendations of the
activist investment funds were re-elected at the June 28
shareholders' meeting, according to the report.
With Ms. Watahiki's resignation, six of the company's 12 directors
are from or affiliated with investment funds.
The Asahi Shimbun says the company had recommended that its
shareholders vote for all director nominees at the meeting.
During the meeting, a shareholder asked the company's management if
the selection of the two investment fund executives would create a
conflict of interest.
Raymond Zage, an outside director at Toshiba who chairs its
nomination committee, replied that agreements were signed by the
company and the executives' investment funds to prevent any
conflicts of interest.
That explanation was not enough for Ms. Watahiki, the report
states.
"I thought the agreements were insufficient in terms of thorough
information management and preventing potential conflicts of
interest," she said about the selection of the two directors.
According to Toshiba, Ms. Watahiki said she resigned "to enable the
board to be united and move forward."
The company also said that 65.87 percent of the shareholders
present voted for Ms. Watahiki's re-election.
That may indicate potential instability in the company's management
and possible obstacles for plans to take Toshiba private, The Asahi
Shimbun relates.
The Asahi Shimbun adds that Naoto Nakamura, a lawyer and expert on
corporate governance, said investment funds would likely have
greater influence on the board, but he praised Ms. Watahiki for
expressing her objection.
"Watahiki, a legal expert, pointed out issues related to bringing
in the two new directors, meaning that the investment funds cannot
behave inappropriately on the board," the report quotes Mr.
Nakamura as saying. "Her objection was a worthwhile action for
Toshiba's future management."
About Toshiba Corp.
Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/--
manufactures and markets electrical and electronic products. The
Company's products include digital products such as PCs and
televisions, NAND flash memories, and system LSIs (large-scale
integrated), as well as social infrastructures such as power
generators, medical equipment, and home appliances.
As reported in the Troubled Company Reporter-Asia Pacific on April
1, 2022, S&P Global Ratings has affirmed its 'BB+' long-term issuer
credit rating and 'B' short-term issuer and issue credit ratings on
Toshiba Corp. S&P removed the long-term issuer credit rating from
CreditWatch with negative implications, on which S&P placed it on
Nov. 16, 2021. The outlook is negative.
=====================
N E W Z E A L A N D
=====================
BD HOMES: Court to Hear Wind-Up Petition on July 22
---------------------------------------------------
A petition to wind up the operations of BD Homes NZ Limited will be
heard before the High Court at Auckland on July 22, 2022, at 10:45
a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Aug. 5, 2021.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City, Auckland 2104
C & W DEVELOPMENTS: Court to Hear Wind-Up Petition on July 8
------------------------------------------------------------
A petition to wind up the operations of C & W Developments GP
Limited will be heard before the High Court at Plymouth on July 8,
2022, at 2:15 p.m.
Nga Kaitiaki o Puketapu Hapu Trust filed the petition against the
company on May 24, 2022.
The Petitioner's solicitor is:
Steven Rollo
Legal Solutions
79 Vivian Street
New Plymouth
NEW DRAGON: Court to Hear Wind-Up Petition on July 22
-----------------------------------------------------
A petition to wind up the operations of New Dragon World Co.
Limited will be heard before the High Court at Auckland on July 22,
2022, at 10:45 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Aug. 5, 2021.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City, Auckland 2104
RATI MANJARI'S: Creditors' Proofs of Debt Due on July 30
--------------------------------------------------------
Creditors of Rati Manjari's Limited are required to file their
proofs of debt by July 30, 2022, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on June 21, 2022.
The company's liquidators are:
Adam Botterill
Damien Grant
Waterstone Insolvency
PO Box 352
Auckland 1140
REMUERA CENTRAL: Creditors' Proofs of Debt Due on Aug. 19
---------------------------------------------------------
Creditors of Remuera Central Management Limited are required to
file their proofs of debt by Aug. 19, 2022, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on June 22, 2022.
The company's liquidator is:
Paul Vlasic
Rodgers Reidy (NZ) Limited
PO Box 45220
Te Atatu Peninsula
Auckland 0651
=================
S I N G A P O R E
=================
BPEA IV: Creditors' Proofs of Debt Due on July 27
-------------------------------------------------
Creditors of BPEA IV Holdings Pte. Limited are required to file
their proofs of debt by July 27, 2022, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on June 21, 2022.
The company's liquidator is:
Liew Khee Soon
60 Paya Lebar Road
#04-51, Paya Lebar Square
Singapore 409051
BUILDER MAX-CONSORTIUM: Court to Hear Wind-Up Petition on July 15
-----------------------------------------------------------------
A petition to wind up the operations of Builder Max-Consortium Pte.
Ltd. (formerly known as Builder Max-Jm Pte. Ltd.) will be heard
before the High Court of Singapore on July 15, 2022, at 10:00 a.m.
Maybank Singapore Limited filed the petition against the company on
June 21, 2022.
The Petitioner's solicitor is:
Tito Isaac & Co LLP
1 North Bridge Road
#30-00 High Street Centre
Singapore 179094
CREDO I: Creditors' Proofs of Debt Due on July 29
-------------------------------------------------
Creditors of Credo I China Holdings Pte. Ltd. and Credo I China GP
Pte. Ltd. are required to file their proofs of debt by July 29,
2022, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on June 20, 2022.
The company's liquidator is:
Ong Kok Yeong David
c/o 80 Robinson Road #02-00
Singapore 068898
EFKA SINGAPORE: Creditors' Meeting Set for July 8
-------------------------------------------------
Efka Singapore Pte Ltd will hold a meeting for its creditors on
July 8, 2022, at 5:00 p.m., via video conferencing (Microsoft Teams
or Zoom).
Agenda of the meeting includes:
a. to lay before the creditors a full Statement of Affairs of
the Company, showing the assets and liabilities, together
with a list of creditors and the estimated amount of their
claims;
b. to confirm the appointment of Mr. Chan Yee Hong, licensed
Insolvency Practitioner, of Nexia TS Risk Advisory Pte. Ltd.
of 80 Robinson Road, #25-00, Singapore 068898, as Liquidator
of the Company for the purpose of such voluntary winding up
and that the Liquidator's fees be based on his normal scale
rates and disbursements incurred be paid out of the
Company's assets.; and
c. to consider and if thought fit, appoint a Committee of
Inspection ("COI").
Mr. Chan Yee Hong of Nexia TS Risk Advisory was appointed as the
provisional liquidator of the company on June 24, 2022.
NATURGY LNG: Creditors' Proofs of Debt Due on July 29
-----------------------------------------------------
Creditors of Naturgy LNG Singapore Pte. Ltd. are required to file
their proofs of debt by July 29, 2022, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on June 20, 2022.
The company's liquidator is:
Ong Kok Yeong David
c/o Tricor Singapore Pte. Ltd.
80 Robinson Road #02-00
Singapore 068898
NUTRYFARM INTERNATIONAL: Placed Under Judicial Management
---------------------------------------------------------
The Business Times reports that the High Court of Singapore has
granted an application to place Nutryfarm International under
judicial management, announced the company in a bourse filing on
June 28.
Chan Yee Hong of liquidator Nexia TS Risk Advisory has been
appointed as the company's judicial manager, BT discloses.
BT says the application for judicial management was filed by
Nutryfarm's creditor, Corpbond IV Ltd, on May 10 this year
following a spate of legal events regarding Nutryfarm's loans owed
to Corpbond.
Both parties were previously in talks to potentially restructure
third-party loans that amounted to some HK$126.9 million (SGD21.9
million) as at Jun 30, 2021. The loans were then set to expire
between March and November 2022.
In a Jan. 20 response to Singapore Exchange queries this year,
Nutryfarm said it had yet to reach any definitive agreement with
Corpbond on a restructuring, BT relates.
Its board also disclosed that pre-action discovery proceedings were
commenced against the company on Dec. 14, 2021, by an individual
claiming to have provided funding for some loans that were later
novated to Corpbond, according to BT.
BT separately reports that Corpbond further issued letters of
demand to Nutryfarm's subsidiary LottVision and its corporate
secretarial services provider, for the group to pay outstanding
sums of SGD3.9 million and US$271,849 that were due on March 31
this year.
This money was part of the principal amount of a loan, as well as
the interests accrued, that Nutryfarm took from Corpbond and Furong
Investments in 2017.
Shares of Nutryfarm have been voluntarily suspended since April 11,
2022, 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.
TEE INTERNATIONAL: DBS Enters Agreement to Sell 33CNC
-----------------------------------------------------
The Business Times reports that DBS has inked an agreement to sell
33 Changi North Crescent (33CNC), a property under embattled Tee
International that the bank is conducting mortgagee sales for.
In a bourse filing on June 28, Tee disclosed that DBS has entered
into a sale and purchase agreement with Applied Materials South
East Asia for 33CNC, with the completion expected to take place on
or around July 18, BT relates.
BT says the aggregate sale consideration for 33CNC was determined
based on the fair value of the property of SGD18 million. DBS will
use the proceeds to satisfy outstanding amounts owed by Tee to the
bank, as well as to other creditors who have a security over the
sale proceeds of the property. It will also cover transaction
expenses incurred by DBS.
In February, Tee received an order on Feb. 17 to assist the
Commercial Affairs Department with an investigation regarding an
offence under the Securities and Futures Act, BT recalls.
Trading in shares of Tee has been suspended since mid-2021, the
report notes.
About Tee International
TEE International Limited (SGX:M1Z) -- http://www.teeintl.com/--
an investment holding company, engages in engineering, real estate,
and infrastructure businesses. TEE International Limited has
operations in Singapore, Malaysia, Thailand, Vietnam, Hong Kong,
Australia, and New Zealand. The company was founded in 1980 and is
headquartered in Singapore.
TEE International reported net losses of SGD7.60 million, SGD18.17
million and SGD59.55 million for years ended May 31, 2018, 2019,
and 2020, respectively.
=================
S R I L A N K A
=================
SRI LANKA: Under Virtual Lockdown With Fuel Supplies Halted
-----------------------------------------------------------
Bloomberg News reports that Sri Lanka abruptly restricted fuel
supplies and told residents to stay home, raising the risk of more
unrest as the government struggles to provide essential goods due
to a crippling sovereign debt crisis that has rocked the country
for months.
Bloomberg relates that the island nation's cabinet of ministers on
June 27 decided to limit distribution of fuel to essential services
until July 10, spokesman Bandula Gunawardena said in a televised
statement, adding that inter provincial public transport would
likely come to a halt.
"Port, health services, food transport will be provided petrol and
diesel while all other sectors are requested to stay at home and
provide services online in this difficult time," Bloomberg quotes
Gunawardena as saying. "Our country is facing an unprecedented
state of finance and foreign exchange crisis."
According to Bloomberg, Sri Lankan Prime Minister Ranil
Wickremesinghe told lawmakers last week the economy had "completely
collapsed," saying the island nation is unable to purchase fuel as
shortages of essentials and electricity worsen. His government is
in talks with the International Monetary Fund as well as bilateral
creditors such as India and China for fresh funds to pay for
imports after it defaulted on its dollar bonds earlier this year
and saw foreign reserves dwindle.
The government had already closed public schools and asked civil
servants to work from home to curtail transport, leaving many roads
in and around the capital, Colombo, deserted over the past days,
even as thousands of vehicles lined up in queues stretching for
kilometers waiting for filling stations to be replenished, the
report says.
Violent protests erupted in May after President Gotabaya
Rajapaksa's brother resigned as prime minister following clashes
between government supporters and opponents, Bloomberg recalls.
Although Rajapaksa has since shored up support in parliament and
vowed to serve out the final two years in his term, tensions remain
high.
Sri Lanka plans to allow foreign companies to distribute fuel in a
bid to ease crippling shortages that have paralyzed most economic
activity, Energy Minister Kanchana Wijesekera said on June 26, the
report relays.
The governor of the Central Bank of Sri Lanka has agreed to pay
outstanding dues to companies for fuel supplies "with a plan," the
president's office said in a statement late on June 27. President
Rajapaksa also instructed officials to take "immediate action to
import fuel using the existing funds available until then," it said
without elaborating.
The government has sent its envoys to Qatar and Russia this week to
secure fresh supplies and is hoping for approval from India of a
$500 million credit line for fuel imports.
Bloomberg adds that the High Commissioner of Sri Lanka to New Delhi
Milinda Moragoda met with India's Minister of Petroleum & Natural
Gas and Housing and Urban Affairs Hardeep Singh Puri in New Delhi
on June 27 to discuss the possibility of securing petrol and diesel
supplies that are required by the island nation on an urgent
basis.
Bloomberg relates that Moragoda also briefed Puri on the "acute
challenges that Sri Lanka is currently facing with regard to the
supply and distribution of petroleum products and the severe
hardships that the people are undergoing," according to a Facebook
post from the high commission.
*********
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 ***