/raid1/www/Hosts/bankrupt/TCRAP_Public/220707.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, July 7, 2022, Vol. 25, No. 129
Headlines
A U S T R A L I A
ATIVA PTY: First Creditors' Meeting Set for July 13
CONSOLIDATED MAINTENANCE: First Creditors' Meeting Set for July 13
COUNTRY COMPANIONSHIP: First Creditors' Meeting Set for July 14
DIVERSE SERVICES: Second Creditors' Meeting Set for July 12
LANGFORD JONES: Enters Liquidation Owing AUD10MM to Creditors
UNIFIED CARE: First Creditors' Meeting Set for July 13
VOLT BANK: Bannister Law Investigating Class Action Against Bank
WESTERNPOINT CONSTRUCTION: Taps Pitcher Partners as Liquidators
WULFRUN CONSTRUCTION: Goes Into Liquidation
C H I N A
BEIJING CAPITAL: Moody's Withdraws 'Ba3' Corporate Family Rating
CHINA EVERGRANDE: Vehicle Unit Starts Taking Pre-Orders
FANTASIA HOLDINGS: Gets Reprieve From Creditors on Bond Repayment
HO WAN KWOK: UST Appoints Joe D. Whitley as Chapter 11 Trustee
POWERLONG REAL: Moody's Cuts CFR to Caa2 & Sr. Unsec. Debt to Caa3
SANSHENG HOLDINGS: Moody's Lowers CFR to Ca, Outlook Remains Neg.
I N D I A
5 CORE: CARE Keeps D Debt Ratings in Not Cooperating Category
AGRI VENTURE: CARE Keeps D Debt Ratings in Not Cooperating
ARVEE ELECTRICALS: CARE Keeps D Debt Ratings in Not Cooperating
ASO AGRO: CARE Keeps D Debt Ratings in Not Cooperating Category
ATLANTIC PROJECTS: CARE Keeps D Debt Rating in Not Cooperating
B. J. GRAIN: CARE Keeps D Debt Rating in Not Cooperating
BABA KAILASHPATI: CARE Lowers Rating on INR9.13cr LT Loan to C
BRIJ ENGINEERING: CARE Keeps C/A4 Debt Ratings in Not Cooperating
EMPEE HOTELS: CARE Assigns D Rating to INR185cr NCD
GREEN EXPRESS: CARE Lowers Rating on INR12cr LT Loan to C
GWALIOR DISTILLERIES: CARE Keeps D Debt Rating in Not Cooperating
K. P. INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating
MITHRA COACHES: CARE Keeps D Debt Rating in Not Cooperating
MURLI ELECTRODE: CARE Keeps C Debt Rating in Not Cooperating
NEELKANTH FARMS: CARE Keeps D Debt Rating in Not Cooperating
SALIM'S PAPER: CARE Lowers Rating on INR12.08cr LT Loan to D
SHREEYA PEANUTS: CARE Keeps C Debt Ratings in Not Cooperating
SIKKA MOTORS: CARE Lowers Rating on INR49cr LT Loan to D
SKG TIMBERS: CARE Keeps C Debt Rating in Not Cooperating
TECH CONNECT: CARE Keeps C Debt Rating in Not Cooperating
I N D O N E S I A
ANEKA TAMBANG: S&P Affirms 'B+' FC LT Rating, Alters Outlook to Pos
J A P A N
MITSUI E&S: Egan-Jones Retains CCC- Senior Unsecured Ratings
TOSHIBA CORP: TEPCO Mulls Joining JIC, PE Firm in Takeover Bid
N E W Z E A L A N D
CHARTWELL ACCOUNTANTS: Placed Into Liquidation
GRADUATE CULTURAL: Court to Hear Wind-Up Petition on July 21
LAVENDER COTTAGE: McDonald Vague Appointed as Receivers
NIKAU PROCESSORS: Creditors' Proofs of Debt Due on Aug. 19
SUPERSCAPES LANDSCAPE: Court to Hear Wind-Up Petition on July 15
S I N G A P O R E
BRAND NEW MEDIA: Creditors' Proofs of Debt Due on Aug.5
ENETT SERVICES: Creditors' Proofs of Debt Due on Aug. 5
QINGJIAN REALTY: Commences Wind-Up Proceedings
TERAS ORANDA: Commences Wind-Up Proceedings
VDC HOLDINGS: Creditors' Proofs of Debt Due on Aug. 5
S O U T H K O R E A
KOREA GAS: Egan-Jones Hikes Senior Unsecured Ratings to BB+
S R I L A N K A
SRI LANKA: Now a 'Bankrupt Country', Prime Minister Says
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A U S T R A L I A
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ATIVA PTY: First Creditors' Meeting Set for July 13
---------------------------------------------------
A first meeting of the creditors in the proceedings of Ativa Pty.
Ltd. will be held on July 13, 2022, at 9:30 a.m. at the offices of
Worrells.
Christopher Damien Darin of Worrells Solvency & Forensic
Accountants was appointed as administrator of the company on July
1, 2022.
CONSOLIDATED MAINTENANCE: First Creditors' Meeting Set for July 13
------------------------------------------------------------------
A first meeting of the creditors in the proceedings of Consolidated
Maintenance Pty Ltd will be held on July 13, 2022, at 10:30 a.m. at
the offices of PCI Partners.
Philip Newman of PCI Partners was appointed as administrator of the
company on July 1, 2022.
COUNTRY COMPANIONSHIP: First Creditors' Meeting Set for July 14
---------------------------------------------------------------
A first meeting of the creditors in the proceedings of Country
Companionship Network Pty Ltd will be held on July 14, 2022, at
3:00 p.m. via online facility.
Mathew Gollant of CJG Advisory was appointed as administrator of
the company on July 5, 2022.
DIVERSE SERVICES: Second Creditors' Meeting Set for July 12
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Diverse
Services (WA) Pty Ltd has been set for July 12, 2022, at 11:00 a.m.
at Parmelia Hilton Perth.
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 11, 2022, at 4:00 p.m.
Jimmy Trpcevski and David Ashley Norman Hurt of WA Insolvency
Solutions were appointed as administrators of the company on June
9, 2022.
LANGFORD JONES: Enters Liquidation Owing AUD10MM to Creditors
-------------------------------------------------------------
Business News Australia reports that customers of Langford Jones
Homes have been left in limbo after the Melbourne-based homebuilder
joined the raft of high-profile construction industry collapses
last week, with a cyber attack just one of many reasons behind the
company's demise.
Jonathon Colbran and Richard Stone Partners (RSM) were appointed on
June 30 as joint and several liquidators to Langford Jones Homes,
which has been building custom-designed residential homes for more
than 48 years in Melbourne's bayside, south eastern suburbs and the
Bass Coast, BNA discloses.
According to the report, RSM partner Colbran said a "perfect storm"
of rising costs and external factors out of the company's control
led to the collapse of Langford Jones Homes, which was founded by
Bruce Langford-Jones in 1975.
"The company recently experienced a significant cyber-attack,
higher costs for labour, supplies and materials, supply chain
delays and skilled labour shortage and all of this has resulted in
substantial financial losses to the business," the report quotes
Mr. Colbran as saying.
"This perfect storm of supply and labour shortages and high costs
are a common theme across the building and construction industry at
the moment and unfortunately, it's become unsustainable for
Langford Jones.
"Our task now is to coordinate the handover of the building
projects to the homeowners and look to realise the value of any
business assets."
BNA relates that the company ceased trading on appointment of
liquidators, leaving 65 building projects in the lurch at various
stages of completion with more than 250 creditors who are owed more
than $10 million.
The homebuilder notes that attempts were made to rescue the company
by shareholders injecting additional funds into Langford Jones
Homes, but the situation was ultimately "untenable," the report
says.
BNA notes that the collapse is the latest in a string of property
and construction industry failures in recent months, including the
Australian arm of property and construction firm Wilson Bayly
Holmes - Ovocon (WBHO) which owned big names in the industry like
Probuild, Monaco Hickey and WBHO Infrastructure.
A number of other large Australian construction firms have also
recently met their maker including boutique investment firm REMI
Capital, Gold Coast builders Pivotal Homes and Condev Construction,
and Sydney developer Next.
UNIFIED CARE: First Creditors' Meeting Set for July 13
------------------------------------------------------
A first meeting of the creditors in the proceedings of Unified Care
Pty Ltd ATF Unified Care Trust will be held on July 13, 2022, at
12:00 p.m. via Microsoft Teams.
Graeme Robert Beattie of Worrells was appointed as administrator of
the company on July 1, 2022.
VOLT BANK: Bannister Law Investigating Class Action Against Bank
----------------------------------------------------------------
News.com.au reports that a class action law firm is investigating
Volt Bank Limited, an Australian bank that collapsed last week, to
see if they have a case on behalf of investors.
On June 30, news.com.au reported that digital bank Volt had stopped
trading, leaving 140 staff members and 6,000 customers out in the
cold as well as investors who had poured AUD212 million into the
venture.
According to the report, Volt Bank had been seeking to raise AUD200
million since February, but said the pandemic and the current
challenging global economic climate had hampered those efforts.
The report relates that the company's eight board members voted to
shut down the company because it had failed to raise enough funds
to support its plans to write mortgages.
It was a decision that left the Volt co-founder and CEO Steve
Weston, "gutted".
The bank urged its customers to withdraw AUD100 million worth of
deposits and began closing accounts on June 28.
Volt, which had its offices in North Sydney, handed back its
banking licence to the regulator on June 29.
But now Bannister Law is asking for investors to get in touch to
help with their investigations into the embattled bank, the report
says.
It also emerged late on July 5 that ANZ might offer the crumbling
company a lifeline, with rumours circulating that the big bank is
looking to buy its smaller counterpart.
In a statement to news.com.au, Bannister Law said it was
"investigating the conduct of management, forecasts and
representations made to investors in the company surrounding the
company's Series A - F equity funding rounds".
The class action law firm added: "Although investors had high hopes
for the company many may stand to lose significant sums of money .
. ."
"Selling remaining assets may yield a return to investors."
According to news.com.au, Bannister Law called on Volt investors to
register their details to aid their investigations so they could
"gain a full picture of what has transpired".
But at the same time that Volt might be facing an impending
lawsuit, hope may have come from an unlikely ally: ANZ.
The Australian reported on July 5 that ANZ was engaged in talks as
it was considering buying Volt, news.com.au relays.
It's understood Volt's technology could be the reason for the big
bank's interest in the company, as ANZ's own technology is not as
advanced.
In a statement to news.com.au, Volt said: "Volt is running a sale
process through Rothschild & Co on a confidential basis.
"There are a number of parties who have registered their interest,
but we will not be commenting further at this time."
In regards to the possible class action, the bank said it had "not
received any claim," news.com.au relays.
WESTERNPOINT CONSTRUCTION: Taps Pitcher Partners as Liquidators
---------------------------------------------------------------
News.com.au reports that Westernpoint Construction Pty Ltd went
into liquidation on June 29 with Pitcher Partners appointed to deal
with the collapse.
Liquidator Innis Cull from Pitcher Partners told news.com.au that
the firm had been newly appointed.
"At this point, we are aware of one homeowner who has been
significantly impacted by the company's failure," the report quotes
Mr. Cull as saying.
"The homeowner was required to pursue the company through the
Victorian Civil & Administrative Tribunal for compensation before
proceeding to wind up the company.
"We will now be investigating any other potential creditors and the
level of outstanding debt."
WULFRUN CONSTRUCTION: Goes Into Liquidation
-------------------------------------------
News.com.au reports that Victorian building company Wulfrun
Construction has gone into liquidation, with one homeowner having
forked out AUD300,000 for a now half-built house.
Wulfrun Construction went into voluntary liquidation on June 29
with insolvency firm BDO Australia appointed as administrators, the
report discloses.
News.com.au relates that dad-of-two Mark, who did not want his
surname used, is one homeowner who has been impacted by the
construction company's collapse after signing up to build a new
house last year for a fixed price of AUD660,000.
The original home in the suburb of Newport had been in Mark's
family for 40 years and was demolished to make way for a new two
storey, four bedroom house.
According to the report, Mark said he was happy with the builder,
who despite delays to the expected December 2021 completion date,
had the slab laid and the framing done in the house.
But then work stopped around April this year, the report notes.
The mortgage broker said the builder was upfront about "cashflow"
problems and Mark was happy to pay out an estimated AUD50,000 extra
for the project to continue, news.com.au relays.
But the dad, whose two kids are aged 12 and nine, claims other
homeowners working with Wulfrun Construction weren't willing to do
the same.
Now he finds himself in a "desperate situation" and said it's
"absolutely devastating".
"The underlying feeling is that fear of losing your home, that
piece of land that has been in my family since the 1980s, where you
grew up and spent your childhood. There's that guilt of demolishing
a house that effectively needed to be demolished – it was built
70 to 80 years ago – it was essentially a weatherboard house and
needed to be updated, but having young kids its been pretty
disruptive," he told news.com.au.
"We moved out of the house in February 2021 into a rental but the
owners wanted to take the property back to renovate and so we moved
to this place. So we have moved twice in a period of about five
months, which was really disruptive, and throw Covid in and
homeschooling, its been a pretty difficult time."
"It will be 18 to 24 months before it gets finished, so that's two
years from today and that's AUD60,000 in rent."
BDO, the liquidators of Wulfrun Construction, declined to provide
any details to news.com.au on the company's outstanding debt, how
many creditors were impacted and what went wrong for the business.
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C H I N A
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BEIJING CAPITAL: Moody's Withdraws 'Ba3' Corporate Family Rating
----------------------------------------------------------------
Moody's Investors Service has withdrawn the following ratings of
Beijing Capital Land Limited (BJCL) and its subsidiaries:
1. The Ba3 corporate family rating of BJCL
2. The B1 corporate family rating of International Financial
Center Property Ltd. (IFC)
3. The provisional (P)B1 backed senior unsecured rating on the
medium-term note (MTN) program of Central Plaza Development Ltd.
(CPD)
The MTN program is guaranteed by IFC, and supported by keepwell
deeds provided by BJCL. Both CPD and IFC are wholly-owned
subsidiaries of BJCL.
Prior to the withdrawal, outlooks for all mentioned companies were
stable.
RATINGS RATIONALE
Moody's has decided to withdraw the ratings for its own business
reasons.
COMPANY PROFILE
Incorporated in China, Beijing Capital Land Limited (BJCL) is a
residential property developer. The company was founded in 2002 as
the major property arm of Beijing Capital Group Co., Ltd. (BCG).
BJCL is fully owned by BCG through Beijing Capital City Development
Group Co., Ltd. after it was delisted from the Hong Kong Stock
Exchange by way of a merger in September 2021. BJCL will be
deregistered eventually.
Incorporated in the British Virgin Islands, IFC is a fully owned
subsidiary of BJCL. IFC is an overseas investment holding company
that owns property development projects in China.
CHINA EVERGRANDE: Vehicle Unit Starts Taking Pre-Orders
-------------------------------------------------------
Reuters reports that China Evergrande New Energy Vehicle Group Ltd
said on July 5 it would start taking pre-orders for its first
model, a key milestone for the unit of embattled property developer
China Evergrande group.
Reuters relates that the start of pre-orders for the sport-utility
vehicle comes after Evergrande Chairmen Hui Ka Yan vowed within 10
years to shift the group's primary business from real estate to the
automobile venture, which has itself struggled for capital.
The all-electric model is the Hengchi 5. Pre-orders, which are not
binding, began on July 6.
Mass production of the Hengchi 5 has been delayed to the third
quarter from June, Reuters relates citing company executives'
recent statements. Evergrande has been reeling under more than $300
billion worth of liabilities.
According to Reuters, Evergrande New Energy Vehicle said it aims at
making 1 million vehicles a year by 2025.
Evergrande is working on a debt restructuring plan. Its electric
vehicle arm has struggled to secure external investment and has
negotiated with potential buyers for some of its assets, says
Reuters.
Shares of the unit have been suspended from trading since April,
pending publication of audited annual results for the 2021
financial year, Reuters notes.
About China Evergrande
China Evergrande Group is an integrated residential property
developer. The Company, through its subsidiaries, operates in
property development, investment, management, finance, internet,
health, culture, and tourism markets.
Evergrande had CNY1.97 trillion (US$311 billion) of liabilities at
the end of June 2021. Once China's biggest developer by sales,
Evergrande fell into distress as cash dried up and the group
overstretched itself on borrowings and ventures into car
manufacturing.
Evergrande hired outside financial advisers Houlihan Lokey and
Admiralty Harbour Capital in September 2021 to engage with
creditors soon after it ran into a liquidity squeeze. It has since
worked with more advisers in the past two months by turning to
China International Capital Corp, BOCI Asia and Zhong Lun Law Firm
on its debt workout plan.
As reported in the Troubled Company Reporter-Asia Pacific on June
7, 2022, Fitch Ratings has withdrawn the Long-Term Foreign-Currency
Issuer Default Ratings (IDR) of 'RD' on Chinese homebuilder China
Evergrande Group and its subsidiaries, Hengda Real Estate Group
Co., Ltd and Tianji Holding Limited. Fitch has also withdrawn the
senior unsecured ratings of Evergrande and Tianji of 'C', with a
Recovery Rating of 'RR6', as well as the rating on the
Tianji-guaranteed senior unsecured notes issued by Scenery Journey
Limited of 'C', with a Recovery Rating of 'RR6'.
Fitch has withdrawn the ratings as Evergrande and its
subsidiarieshave chosen to stop participating in the rating
process. Therefore, Fitch will no longer have sufficient
information to maintain the ratings. Accordingly, Fitch will no
longer provide ratings or analytical coverage for Evergrande and
its subsidiaries.
FANTASIA HOLDINGS: Gets Reprieve From Creditors on Bond Repayment
-----------------------------------------------------------------
South China Morning Post reports that Fantasia Holdings Group is
getting some breathing room to tackle its US$12 billion of
liabilities after creditors agreed to extend the maturity of a
domestic bond and accept staggered bond interest payments.
Bondholders agreed to delay the repayment of a CNY724 million
(US$107.7 million) 8.2% bond by five months to December, according
to a Hong Kong stock exchange filing on July 5, the Post relays.
They will also accept 20% of the coupon on July 8 and 80% on
December 5, it added.
According to the report, the defaulted developer said it has made
arrangements to pay the first coupon instalment. The bond was first
sold by its onshore unit in July 2019.
The latest reprieve came after the Shenzhen-based developer was
served with a winding-up petition in late May by an offshore
creditor Flower SPV 4 Limited in Cayman Islands for failing to pay
a US$149 million loan, the Post says.
Fantasia, founded in 1996 by Zeng Jie, who is the niece of former
vice-president Zeng Qinghong, hasn't published its accounts since
its interim report for June 30, 2021. It had CNY83 billion of
liabilities, including US$4.5 billion of dollar-denominated bonds
and CNY34 billion of local-currency debt, the Post discloses.
The Post notes that Chinese developers have been forced to delay
their debt payments following Beijing's "three red lines" rules in
August 2020 clamped down on excessive debt in the industry to
protect the financial system. The hardline policy has shut out weak
borrowers from the loan and bond markets at home and abroad,
fanning a liquidity crisis.
Fantasia shocked the market in October by saying that it would not
be able to repay US$205.7 million of bonds, barely days after it
told investors and creditors that it had made an arrangement to
settle the debt on maturity, the report recalls.
The cash squeeze set alarm bells ringing, which led company
chairman Pan Jun to clarify on social media that "we will
definitely pay our debts." The firm also vowed to oppose the
winding-up petition to protect its interest, the Post adds.
About Fantasia Holdings
Fantasia Holdings Group Co., Limited, an investment holding
company, invests in, develops, sells, and leases commercial and
residential properties primarily in the People's Republic of China.
It operates through six segments: Property Development, Property
Investment, Property Agency Services, Property Operation Services,
Hotel Operation, and Others. The company engages in the development
of urban complexes, upscale boutique residences, and mid-to-high
end residence projects; the provision of hotel accommodation,
property management, value-added, engineering, and travel agency
services; and manufacture and sale of fuel pumps. It also provides
community services through online platform; and wealth management,
finance lease, petty loans, P2P, funds and factoring, consumer
finance, insurance, payment services, etc. for enterprises and
individuals, as well as operates and manages various city
complexes, shopping centers, etc. In addition, the company operates
golfs, high-end city clubs, private clubs, theme parks, art
museums, etc.; and develops various home-based care service
stations, daytime care centers, and senior citizen apartments,
which provide home care, health care, rehabilitation therapy,
nutrition catering, and spiritual solace, as well as education
services. Fantasia Holdings Group Co., Limited is a subsidiary of
Fantasy Pearl International Limited.
As reported in the Troubled Company Reporter-Asia Pacific on Dec.
16, 2021, S&P Global Ratings has withdrawn its 'SD' (selective
default) long-term issuer credit rating on Fantasia Holdings Group
Co. Ltd. at the issuer's request. S&P also withdrew the 'CC'
long-term issue rating on its outstanding senior unsecured notes,
and the 'D' long-term issue rating on the notes due Oct. 4, 2021.
HO WAN KWOK: UST Appoints Joe D. Whitley as Chapter 11 Trustee
--------------------------------------------------------------
William K. Harrington, the United States Trustee for Region 2,
applied with the U.S. Bankruptcy Court for the District of
Connecticut for an order approving the appointment of Joe D.
Whitley as Chapter 11 trustee in the Ho Wan Kwok a/k/a Wengui Guo
a/k/a Miles Guo case.
Pursuant to 11 U.S.C. Section 1104(d), the United States Trustee
has consulted these parties-in-interest regarding the selection of
the Chapter 11 Trustee: (i) counsel to the Unsecured Creditors'
Committee, (ii) counsel to lender Pacific Alliance Asia Opportunity
Fund, (iii) counsel to creditors Rui Ma, Weican Meng and Zheng Wu,
and (iv) counsel to the Debtor.
To the best of the United States Trustee's knowledge, Joe D.
Whitley's connections with the Debtor, creditors, any other
parties-in-interest, their respective attorneys and accountants,
the United States Trustee, and persons employed in the Office of
the United States Trustee are set forth on the Verified Statement
of Joe D. Whitley.
The United States Trustee requests that the Court enter an order
approving the appointment of Joe D. Whitley as Chapter 11 Trustee
and grant such other relief as the Court may deem just and proper.
A copy of the application is available for free at
https://bit.ly/3R7TVjR from PacerMonitor.com.
About Ho Wan Kwok
Ho Wan Kwok sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Conn. Case No. 22-50073) on Feb. 15, 2022. Judge
Julie A. Manning oversees the case. Dylan Kletter, Esq., is the
Debtor's legal counsel.
Ho Wan Kwok aka Guo Wengui is an exiled Chinese businessman.
According to Reuters, Guo was a former real estate magnate who fled
China for the U.S. in 2014 ahead of corruption charges. Guo filed
for bankruptcy after a New York court ordered him to pay lender
Pacific Alliance Asia Opportunity Fund $254 million stemming from a
contract dispute. PAX had initially loaned two of Guo's companies
$100 million in 2008 for a construction project in Beijing and sued
Guo when he failed to pay off the loan.
An Official Committee of Unsecured Creditors has been appointed in
the case and is represented by Pullman & Comley, LLC.
POWERLONG REAL: Moody's Cuts CFR to Caa2 & Sr. Unsec. Debt to Caa3
------------------------------------------------------------------
Moody's Investors Service has downgraded Powerlong Real Estate
Holdings Limited's corporate family rating to Caa2 from Caa1 and
senior unsecured rating to Caa3 from Caa2.
The outlook remains negative.
"The rating downgrades reflect Powerlong's heightened liquidity
risk following its proposed exchange offer and consent solicitation
to its noteholders," says Cedric Lai, a Moody's Vice President and
Senior Analyst.
"The negative outlook reflects the uncertainty over the company's
ability to address its near-term debt maturities amid challenging
funding conditions," adds Lai.
RATINGS RATIONALE
On July 4, 2022, Powerlong announced an exchange offer and consent
solicitation to its bondholders for the company's USD senior notes
due in July 2022 and November 2022 [1].
The proposed exchange offer indicates Powerlong's liquidity stress
amid a difficult operating environment, tight funding conditions
and the company's large debt maturities, including a total of
USD600 million offshore bonds due before the end of December 2022.
The company also has USD420 million of offshore bonds and onshore
bonds of RMB9.4 billion maturing or becoming puttable before the
end of 2023.
Powerlong's Caa2 CFR reflects the company's weak liquidity, and
Moody's expectation that the company will face difficulties in
raising new funds from onshore and offshore bond markets to address
its refinancing needs due to the constrained funding conditions.
Although Powerlong's investment property portfolio could provide an
alternate source of liquidity, such asset sales would be subject to
the volatile market conditions.
The Caa3 senior unsecured debt rating is one notch lower than
Powerlong's CFR due to structural subordination risk. This risk
reflects the fact that the majority of claims are at the operating
subsidiaries and have priority over Powerlong's senior unsecured
claims in a bankruptcy scenario. In addition, the holding company
lacks significant mitigating factors for structural subordination.
As a result, the likely recovery rate for claims at the holding
company will be lower.
In terms of environmental, social and governance (ESG) factors,
Moody's has considered the company's concentrated ownership in its
controlling shareholders, Hoi Kin Hong and Hoi Wa Fong, who
together held a 59% stake in the company as of December 31, 2021.
Moody's has also considered the oversight of the company's special
committees, of which its audit and remuneration committees are
chaired by two independent nonexecutive directors; and the
application of the Listing Rules of the Hong Kong Stock Exchange
and the Securities and Futures Commission Ordinance in Hong Kong
SAR, China to oversee related-party transactions.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade is unlikely given the negative outlook.
However, positive rating momentum could emerge if Powerlong
improves its operating cash flow, funding access and materially
reduces its refinancing risks.
On the other hand, Moody's could downgrade the rating if the
company's liquidity and refinancing risks heighten, or if the
recovery prospects for its creditors deteriorate.
The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in January 2018.
Powerlong Real Estate Holdings Limited is a Chinese property
developer focused on building large-scale integrated residential
and commercial properties in China. The company, which is 59% owned
by the founding Hoi family as of December 31, 2021, listed on the
Hong Kong Exchange in October 2009.
As of December 31, 2021, Powerlong's land bank for development
totaled around 36.5 million square meters in gross floor area under
development and for future development.
SANSHENG HOLDINGS: Moody's Lowers CFR to Ca, Outlook Remains Neg.
-----------------------------------------------------------------
Moody's Investors Service has downgraded Sansheng Holdings (Group)
Co. Ltd.'s corporate family rating to Ca from Caa2.
The outlook remains negative.
"The downgrade reflects our expectation that Sansheng will likely
default on its debt obligations, and of the weak recovery prospects
for Sansheng's bondholders following its failure to obtain the
minimum acceptance amount to proceed with its proposed exchange
offer for its USD bond due in July 2022," says Kelly Chen, a
Moody's Vice President and Senior Analyst.
"The negative outlook reflects Moody's view that the recovery
prospects for Sansheng's creditors could weaken further," adds
Chen.
RATINGS RATIONALE
Sansheng announced on June 30, 2022 that it was unable to obtain
the minimum acceptance amount for the proposed exchange offer
relating to the US$100,000,000 13.0% senior notes due on July 5,
2022. As a result, the exchange offer will not proceed. The company
expects that it will be unable to meet the repayment obligations
under the existing notes at maturity [1].
The expected default of the senior notes reflects the company's
limited financial flexibility and weak liquidity. Moody's expects
the company will likely go through a debt restructuring process and
will have to rely on asset sales or investments from potential
investors to generate funds for debt servicing. However, these
fundraising activities entail high execution risks and the recovery
prospects for creditors remain uncertain.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
An upgrade is unlikely given the negative outlook.
However, positive rating momentum could develop if Sansheng repays
its maturing debt and improves its liquidity position materially.
The principal methodology used in this rating was Homebuilding And
Property Development Industry published in January 2018.
Sansheng is a Chinese property developer with over 20 years of
property development experience. Its gross contracted sales reached
RMB24.5 billion in 2021. As of the end of 2021, the company had 55
property development projects with a land bank of 7.4 million
square meters.
=========
I N D I A
=========
5 CORE: CARE Keeps D Debt Ratings in Not Cooperating Category
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of 5 Core
Acoustics Private Limited (5CAPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short Term Bank 15.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 20, 2021,
placed the rating(s) of 5CAPL under the 'issuer non-cooperating'
category as 5CAPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. 5CAPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 6, 2022, March 16, 2022, March 26, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
5 Core Acoustics Private Limited (5CAPL) was incorporated in
September, 1995 under the name of Rajindra Mattresses Private
Limited (RMPL) with the main purpose of manufacturing car seats,
bedding, etc. However, in 2014, RMPL was acquired by the promoters
of the '5 Core' group, Mr. Amarjit Singh Kalra and his wife, Ms.
Surinder Kaur Kalra and the name of the company was changed to 5
Core Acoustics Private Limited in December, 2014. Presently, the
company is involved in the manufacturing and assembling of public
address (PA) systems and components, including loud speakers,
amplifiers, microphones, and woofers, and related electronic and
electrical equipment. The company commenced operations in December,
2014 and its manufacturing facility is located in Bhiwadi,
Rajasthan.
AGRI VENTURE: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Agri
Venture (AV) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 5.95 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated May 3, 2021,
placed the rating(s) of AV under the 'issuer non-cooperating'
category as AV had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. AV continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 19, 2022, March 29, 2022, April 8, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Rajkot-based (Gujarat), Agri Venture was incorporated in 2014. Agri
Venture is merchant exporter of Agri commodities such as Sesame
Seeds, Turmeric Finger, Groundnut and Cumin seeds. Mr. Chirag
Mahesh Sangani, proprietor, aged 38 years who has an experience of
more than thirteen years, manages the overall operations of the
company. They majorly export to countries like Vietnam, Greece,
Turkey, Israel and Egypt.
ARVEE ELECTRICALS: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Arvee
Electricals And Engineers Private Limited (AEEPL) continues to
remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 1.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 10.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 21, 2021,
placed the rating(s) of AEEPL under the 'issuer non-cooperating'
category as AEEPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. AEEPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 7, 2022, March 17, 2022, March 27, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Established in the year, 1987, AEEPL is a Pune-based company
promoted by Mr Arun Doshi and Mrs Asha Doshi. The company is a
turnkey electrical contractor and handles contracts for sugar,
cement, fertilizer, metallurgical plants, cement plants and the oil
industry. The company also provides services related to
engineering, detailing, designing, production and commissioning of
substations and transmission lines set up for private organizations
and is also engaged in the trading of electrical components like LT
panels and electrical control boards.
ASO AGRO: CARE Keeps D Debt Ratings in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Aso Agro
Private Limited (AAPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.75 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.75 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 13, 2021,
placed the rating(s) of AAPL under the 'issuer non-cooperating'
category as AAPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. AAPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 27, 2022, March 9, 2022, March 19, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in April 2017, Aso Agro Private Limited (AAPL) was
promoted by the Agarwal family of West Bengal to set up a rice
milling and processing plant. The company has successfully set up
its milling and processing plant with aggregate cost of INR19.15
crore funded at debt equity of 4.64x and started its commercial
operations from March 2019. The plant of the company is located at
Gurap, West Bengal with an installed capacity of 60000 metric tons
per annum (MTPA). The company procures its raw material from local
farmers and traders and finished products sells to the local
traders and wholesales.
ATLANTIC PROJECTS: CARE Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Atlantic
Projects Limited (APL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 123.45 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 9, 2021,
placed the rating(s) of APL under the 'issuer non-cooperating'
category as APL had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. APL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 23, 2022, March 5, 2022, March 15, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
APL was incorporated in October, 1999, promoted by Mr Siddharth
Mehra and his brother Mr Kapil Mehra. The company commenced
operation in 2005 by venturing into the cotton trading business.
The company traded in raw cotton, cotton yarn and fabrics and
catered to both the domestic and export market. In FY13 (refers to
the period April 1 to March 31), the company forayed into executing
civil construction work for public sector enterprises and was
awarded contracts for construction of multipurpose cyclone shelters
and food godowns.
B. J. GRAIN: CARE Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------
CARE Ratings said the rating for the bank facilities of B. J. Grain
(BJG) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 28, 2021,
placed the rating(s) of BJG under the 'issuer non-cooperating'
category as BJG had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. BJG continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 14, 2022, March 24, 2022, April 3, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Established in October 2015, as a proprietorship entity, B. J.
Grain (BJG) is engaged in trading of grains and pulses. The firm
started its commercial operations from February 2016.
BABA KAILASHPATI: CARE Lowers Rating on INR9.13cr LT Loan to C
--------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Baba Kailashpati Agro Processing Private Limited (BKAPPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.13 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B-; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 13, 2021,
placed the rating(s) of BKAPPL under the 'issuer non-cooperating'
category as BKAPPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. BKAPPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone callsand a letter/email dated
February 27, 2022, March 09, 2022, March 19, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating assigned to the bank facilities of BKAPPL have been
revised on account of non-availability of requisite information.
The rating also factored in decline in scale of operations,
operating profitability, deteriorated capital structure, debt
coverage indicators and increase in total debt levels during FY21.
Baba Kailashpati Agro Processing Private Limited was incorporated
in August 2015 with an objective to enter into the cold storage
business. The company is currently providing cold storage services
primarily for potatoes to the farmers and traders on a rental basis
from December 2016. The cold storage unit of the company is located
at Vill & PO- Dakshin Rasulpur, PSArambagh, Dist- Hooghly, West
Bengal with a storage capacity of 209000 quintals per annum. The
company provides interest bearing advances to farmers for farming
purpose against potatoes stored. The day to day operations of the
company are looked after by Mr. Subrata Kumar Paul (Director) and
Mr. Mantu Behari Samanta, who have experience of around 16 years,
21 years, respectively, in similar line of business.
BRIJ ENGINEERING: CARE Keeps C/A4 Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Brij
Engineering Works-Kanpur (BEW) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 7.00 CARE C; Stable/CARE A4;
Short Term ISSUER NOT COOPERATING;
Bank Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 26, 2021,
placed the rating(s) of BEW under the 'issuer non-cooperating'
category as BEW had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. BEW continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 12, 2022, March 22, 2022, April 1, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution
while using the above rating(s).
Kanpur (Uttar Pradesh) based Brij Engineering Work (BEW) was formed
as partnership concern by Mr. Brij Kishore Gupta, Mar. Swapnil
Gupta, Mrs. Sheela Gupta and Mrs. Shweta Gupta in September 1,
1978. The firm is engaged in the construction of overhead tank,
sewage pipelines and sewage treatment plants, installation and
commissioning of water supply lines. The firm takes the contracts
from government departments through participating in tenders.
EMPEE HOTELS: CARE Assigns D Rating to INR185cr NCD
---------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Empee
Hotels Limited (EHL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non Convertible
Debentures 185.00 CARE D Assigned
Detailed Rationale & Key Rating Drivers
CARE has assigned the rating of CARE D to the proposed
Non-Convertible Debentures (NCD) of EHL. Facilities with this
rating are in default or are expected to be in default soon. The
rating factors in the ongoing delays in servicing of debt
obligations of Edelweiss Asset Reconstruction Company (EARC) by
EHL.
Rating Sensitivities
Positive Factors - Factors that could lead to positive rating
action/upgrade:
* Timely servicing of debt obligations for more than 3 months
* Deleveraging of balance sheet through fund infusion or asset
monetization and improvement in liquidity position of the
company.
Detailed description of the key rating drivers
Key Rating Weakness
* Ongoing delays in debt obligations to EARC: On account of
consistent liquidity issues, the company has delayed in meeting the
debt obligations for the period of FY20, FY21 and FY22. The company
entered into one-time settlement (OTS) agreement with the lender
(EARC) during March 2022, as per which the company was liable to
pay INR205 crore, by May 31, 2022. The company could pay only INR17
crore out of the total outstanding amount as on date (June 17,
2022). The proceeds from the proposed NCD would be utilized towards
settling the amount of OTS and the balance amount is proposed to be
paid by promoters.
* Weak Financial Profile: The company has weak financial risk
profile characterized by high leverage and poor debt coverage
indicators. Going forward, EHL's cash flow from hotel operations,
would not be sufficient to meet the debt obligations related to
proposed NCDs. Hence, there would be significant reliance on
promoters for timely fund infusion to repay the quarterly interest
obligations and bullet principal repayment at the end of two years.
The promoters are expected to monetise some of their assets or
develop another land in JV for a commercial real estate project to
meet the debt obligations related to proposed NCDs.
Key Rating Strength
* Experienced promoters: EHL is promoted by Mr. MP Purshothaman who
is also serving as Chairman of EHL. Mr.MP Purshothaman has
extensive experience of over five decades in hospitality business
and has also held the position of President of Tamil Nadu Hotels
and Restaurants Association for close to 22 years. Mrs. Nisha
Purshothaman, who is serving as a Managing Director of EHL also has
a rich experience of over 3 decades in hoteling and hospitality
business. Favourable location of hotels and strong Brand image of
'Hilton' The hotel is located in Ekkaduthangal, which is close
proximity to the Chennai airport and IT clusters of Chennai.
Chennai has the sixth busiest airport in the country (based on
passenger traffic in 2021-22), and also enjoys the status of being
the second largest exporter of Information technology and business
process outsourcing (BPO) services, after Bengaluru, in India.
Thus, owing to the hotel's favorable location, EHL benefits from
influx of business and leisure travelers.
Further, EHL has a long-term association with Hilton group, UK
which is one of the largest hospitality brands across the world and
has a stellar reputation among the international business and
leisure travelers. The hotel is operated by the name 'Hotel Hilton'
and is fully managed by the Hilton group. In consideration, Hilton
charges from EHL 2% of revenue as management fees and further 8% of
gross operating profit as incentive fees, which is calculated as
per defined terms, for managing the hotel. Further EHL also shares,
2% of revenue as group service benefit (GSB) with Hilton.
Liquidity: Poor
The liquidity position of the company stands Poor. The cash balance
as of March 31, 2022 stood low at INR0.51 crore. The expected cash
flows of the company would not be sufficient to meet the debt
obligations for proposed NCDs. The company, over the years apart
from operating cash flows is dependent on promoter funds to honour
its debt obligations. Going forward, the company plans to honour
its debt obligations in future for proposed NCDs mainly through
equity infusion by the promoters.
Empee Hotels Ltd (EHL) was incorporated in 2004 primarily to
develop a 5-star deluxe hotel project in Chennai. The company
commenced its hotel operations in 2011. EHL is promoted by Mr. M.P.
Purushothaman, Chairman of Empee group of companies. EHL currently
owns a 204 rooms 5-star deluxe category hotel in the name of 'Hotel
Hilton' at Ekkaduthangal, in Chennai.
GREEN EXPRESS: CARE Lowers Rating on INR12cr LT Loan to C
---------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Green Express Carriers Private Limited (GECPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B-; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated May 5, 2021,
placed the rating(s) of GECPL under the 'issuer non-cooperating'
category as GECPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. GECPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 21, 2022, March 31, 2022, April 10, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution
while using the above rating(s).
The ratings for GECPL have been revised on account of significant
decline in scale of operation, reported net loss and leveraged
capital structure during FY21 over FY20. The rating revision also
considered non-availability of requisite information.
New Delhi-based Green Express Carriers Private Limited (GEC) was
incorporated in February 2015 by Mr Tejinderjit Singh Dang and Mr
Kamal Deep Singh Dang and started its commercial operations in
December 2015. The company is in the business of providing
logistics services.
GWALIOR DISTILLERIES: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Gwalior
Distilleries Limited (GDL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 37.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 26, 2021,
placed the rating(s) of GDL under the 'issuer non-cooperating'
category as GDL had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. GDL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 12, 2022, March 22, 2022, April 1, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
GDL was incorporated in the year 1986 by Mr Govind Yadav to
undertake the business of blending and bottling of Indian made
foreign liquor (IMFL). The IMFL blending and bottling unit of the
company is located in district of Madhya Pradesh.
K. P. INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of K. P.
Industries (KPI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.69 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated May 3, 2021,
placed the rating(s) of KPI under the 'issuer non-cooperating'
category as KPI had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. KPI continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 19, 2022, March 29, 2022, April 8, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Established in the year 2009, Ahmedabad-based K.P. Industries (KPI)
is a partnership firm engaged in the processing of non-basmati
rice. Key partners include Mr. Dhaval Prajapati and Mr. Atul
Prajapati who manage the day to day operations. As on March 31,
2016, it had a total installed capacity of 69,120 Metric Tonnes per
annum and operates through its sole manufacturing unit at Kheda.
MITHRA COACHES: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Mithra
Coaches Private Limited (MCPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 28.11 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 7, 2021,
placed the rating(s) of MCPL under the 'issuer non-cooperating'
category as MCPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. MCPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 21, 2022, March 3, 2022, March 13, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Mithra Coaches Private Limited (MCPL) was incorporated in 2008 and
is engaged in manufacturing of structural bodies for buses,
containers, light commercial vehicle, bunk houses, trailers, water
tankers, and oil tankers. The company is promoted by Mr. Maganti
Subrahmanyam (Chairman), Mr. M. Venugopal (Director), Mr. N.
Seshadri Sekhar (Director). Mr. Madhusudhana Sarma, Mr. M.
Chandramouli (Director). The manufacturing facility of the company
is located in Veerapanenigudem village, Andhra Pradesh and has a
capacity of manufacturing 300 buses and 240 containers in a year.
MURLI ELECTRODE: CARE Keeps C Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Murli
Electrode Private Limited (MEPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.00 CARE C; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 1.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 26, 2021,
placed the rating(s) of MEPL under the 'issuer non-cooperating'
category as MEPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. MEPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 12, 2022, March 22, 2022, April 1, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Nagpur based, Murli Electrode Private Limited (MEPL) was
incorporated on June 23, 1998, by Mr. Murli Maloo, Mr. Mahesh
Maloo, Mr. Dinesh Maloo and Mr. Harish Maloo. MEPL is engaged in
the manufacturing of various types of welding electrodes, welding
consumables and wires.
NEELKANTH FARMS: CARE Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Neelkanth
Farms (NF) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.20 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 19, 2021,
placed the rating(s) of NF under the 'issuer non-cooperating'
category as NF had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. NF continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 5, 2022, March 15, 2022, March 25, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Neelkanth Farms (NF) was established in July, 2017 as a partnership
firm and is currently being managed by Mr. Anil Mor, Mr. Ram Kumar
and Mr. Madan Mohan. NKF is established with an aim to set up a
poultry farming business at its poultry farm located in Karnal,
Haryana with the proposed breeding capacity of about 20,000 layer
birds per batch.
SALIM'S PAPER: CARE Lowers Rating on INR12.08cr LT Loan to D
------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Salim's Paper Private Limited (SPPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.08 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE C; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated May 13, 2021,
placed the rating(s) of SPPL under the 'issuer non-cooperating'
category as SPPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SPPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 29, 2022, April 8, 2022, April 18, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings of SPPL have been revised on account of ongoing delays
in debt servicing as recognized from publicly available information
i.e. CIBIL report. The revision in ratings also considers the
non-availability of requisite information.
Jaipur (Rajasthan)-based Salims Paper Private Limited (SPPL) was
formed in May 2011 as a private limited company by Jaipur based
Kagji family with an objective to set up greenfield project for the
manufacturing of tissue papers.
SHREEYA PEANUTS: CARE Keeps C Debt Ratings in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shreeya
Peanuts Private Limited (SPPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.46 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Long Term/ 15.00 CARE C/CARE A4; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 13, 2021,
placed the rating(s) of SPPL under the 'issuer non-cooperating'
category as SPPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SPPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 27, 2022, March 9, 2022, March 19, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in October 2013, Shreeya Peanuts Private Limited
(SPPL) is engaged in groundnut oil milling, solvent extraction and
refinery of edible oil with an installed capacity for the oil mill
plant is 22,000 MTPA, 44,000 MTPA for the solvent plant and 22,000
MTPA for the refinery plant.
SIKKA MOTORS: CARE Lowers Rating on INR49cr LT Loan to D
--------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Sikka Motors Private Limited (SMPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 49.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE C; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 29, 2021,
placed the rating(s) of SMPL under the 'issuer non-cooperating'
category as SMPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SMPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 15, 2022, March 25, 2022, April 4, 2022 and June 20, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of SMPL have been
revised on account of frequent delays in debt servicing as stated
by the banker. The revision in ratings also considers the
non-availability requisite information.
Incorporated in 2013, Sikka Motors Private Limited (SMPL) is
promoted by Mr. Gurinder Singh Sikka , Mr. Harvinder Singh Sikka,
Ms. Jasvinder Kaur and Ms. Kusham Kaur. SMPL's commercial
operations commenced from October 2016. The company is an
authorised dealership of Hyundai Motors India Limited (HMIL) for
Passenger vehicles.
SKG TIMBERS: CARE Keeps C Debt Rating in Not Cooperating
--------------------------------------------------------
CARE Ratings said the rating for the bank facilities of SKG Timbers
Private Limited (SKGTPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.00 CARE C; Stable: ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 18.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated May 17, 2021,
placed the rating(s) of SKGTPL under the 'issuer non-cooperating'
category as SKGTPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SKGTPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 2, 2022, April 12, 2022, April 22, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Delhi based SKG Timbers Pvt Ltd (SKGTPL) established in 2010 as a
private limited company and currently being managed by Mr. Sushil
Kumar, Mrs. Suchitra Goel and Mr. Raghav Goel. The company is
engaged into trading of MDF i.e. Medium density fiber board (MDF)
and processing of wooden logs to make plywood.
TECH CONNECT: CARE Keeps C Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Tech
Connect Services Private Limited (TCSPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.68 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Short Term Bank 3.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated May 3, 2021,
placed the rating(s) of TCSPL under the 'issuer non-cooperating'
category as TCSPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. TCSPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 19, 2022, March 29, 2022, April 8, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
New Delhi-based, Tech Connect Services Private Limited (TCSPL) was
incorporated in June 2008. The company is currently managed by Mr.
Mohana Bharat, Mr. Harkirat Singh and Mr. V. Sankaranarayanan. The
company is engaged in providing consultancy and undertakes EPC
(Engineering, Procurement and Construction) contract for setting up
audio/video conferencing system which includes supply,
installation, testing, commissioning, repair & maintenance of
equipment.
=================
I N D O N E S I A
=================
ANEKA TAMBANG: S&P Affirms 'B+' FC LT Rating, Alters Outlook to Pos
-------------------------------------------------------------------
S&P Global Ratings affirmed the 'B+' Foreign Currency LT credit
rating of Indonesia-Based Miner PT Aneka Tambang Tbk (ANTAM) on
July 4, 2022. At the same time the rating agency revised its
outlook to positive from stable, reflecting its view of the
company's improving business prospects from enlarged scale and
greater downstream integration.
The positive outlook indicates that S&P may upgrade ANTAM over the
next 12-18 months if the company continues to improve its business
scale and vertical integration, while maintaining a debt-to-EBITDA
ratio below 3x.
ANTAM could benefit from its enlarged operating scale and greater
downstream integration in nickel over the next 12-18 months. S&P
said, "We believe the company is well positioned to continue
ramping up its nickel ore sales (upstream) and ferronickel sales
(downstream) over the next 12-18 months, stemming from a
combination of organic projects and investments into downstream
nickel. We project ANTAM could step up its capital spending related
to downstream nickel over 2022 and 2023. ANTAM's direct investment
in its own organic projects, for example, its new 13,500-ton nickel
content (TNi) P3FH ferronickel plant in East Halmahera, Indonesia,
will deepen its downstream integration. Moreover, off-balance sheet
investments into downstream nickel joint ventures will provide
greater offtake certainty for the company's domestic nickel ore
sales."
ANTAM's strategy could result in nickel ore sales reaching 20
million wet metric tonnes (wmt) by 2023--more than double the
company's nickel ore sales prior to the first Indonesian ban on
nickel ore export in 2014. Concurrently, ANTAM will increase its
ferronickel capacity by 50% from current levels as its new rotary
kiln electric furnace ferronickel plant in East Halmahera become
operational in the second half of 2023. This follows the company's
securing of a power purchase agreement with PT Perusahaan Listrik
Negara (Persero) in March this year. ANTAM's ferronickel production
depends on its captive nickel ore as feedstock, and S&P expects the
increased capacity to consume about 3.3 million wmt of nickel ore
per year, which is 30% of ANTAM's nickel ore production in 2021.
ANTAM's third-party nickel ore sales will benefit from the growing
nickel industry in Indonesia. S&P believes the domestic
marketability of ANTAM's nickel ore will continue to improve over
next two to three years. Investments have poured into Indonesia's
downstream nickel industry since the Indonesian government
announced plans to ban exports of nickel ore. Since 2014, Indonesia
has seen a steady rise in investment in its nickel downstream
sector from private Chinese stainless steel companies, such as
Tsingshan Holding Group, in an effort to secure nickel supply. S&P
expects subsidiaries of notable electric vehicle battery makers,
such as LG Chem Ltd. and Contemporary Amperex Technology Co. Ltd.,
to follow suit as key players look to secure nickel supply for
their operations.
S&P said, "We expect demand for electric vehicle batteries will
take some time to grow, given the long gestation periods of such
greenfield developments. Based on existing investment plans
announced in Indonesia, major projects typically have construction
timelines of two to four years. Still, we expect the pipeline of
downstream nickel projects to continue growing as the Indonesian
government looks to spur further investment in the electric vehicle
value chain."
Meanwhile, downstream investments have boosted domestic market
demand for nickel ore. Since the export ban on nickel ore took
effect in January 2020, ANTAM's domestic nickel ore sales have
steadily risen to 2.3 million wmt in the first quarter of this year
from below 0.2 million wmt in the second quarter of 2020. S&P
expects ANTAM to be on track to post 10 million–12 million wmt of
nickel ore sales in 2022, thereafter increasing to 15 million–17
million wmt in 2023, while maintaining its low-cost nickel mining
operations.
ANTAM's earnings are likely to remain stable over the next 12-18
months, under our current metals price assumptions. S&P said, "We
project the company's adjusted EBITDA at Indonesian rupiah (IDR)
5.2 trillion–IDR5.7 trillion in 2022 and 2023. This is despite a
likely increase in nickel ore and ferronickel sales, because we
expect materially lower profits from ANTAM's ferronickel sales due
to higher energy prices. The company's ferronickel smelting
operations are energy intensive, and energy costs are benchmarked
to coal and high-sulfur fuel oil prices. Consequently, we
anticipate ANTAM's cash cost per unit of ferronickel would rise to
US$6.8-US$7.3 per pound (lb) in 2022, before declining to
US$5.3/lb-US$5.8/lb in 2023. This measure was US$5.11/lb in 2021."
ANTAM would benefit from robust nickel prices, which would likely
persist for the next 12 months as a result of the Russia-Ukraine
conflict. S&P said, "We have held our nickel price assumptions
unchanged since the start of the year until markets begin clearing
and we can reestablish a view on spot prices and the forward curve.
Before the London Metal Exchange suspended nickel trading in March,
prices were tracking at their highest levels in decades, which
should translate into higher earnings for nickel miners and
smelters such as ANTAM. We expect the market for nickel to remain
tight, because global supply will remain affected by sanctions on
the metal from Russia."
S&P said, "We anticipate ANTAM could step up its downstream nickel
investments in 2022 and 2023. We project ANTAM will maintain its
debt-to-EBITDA ratio well below 1.5x under our base case. Based on
our sensitivity analysis, we estimate ANTAM would have the capacity
to take on capital spending up to IDR15 trillion over 2022 and 2023
before reaching our debt-to-EBITDA trigger of 3x in 2023. This is
based on our current metals price assumptions for nickel in 2022,
which remain 20%-30% below current spot prices. Under such a
scenario, we would expect ANTAM to continue making shareholder
distributions such that negative free cash flow amounts to a total
of IDR10 trillion–IDR12 trillion over 2022 and 2023. By our
estimates, ANTAM could breach its trigger should the company
proceed with a step up in investments to IDR15 trillion amid weaker
commodities prices than what we currently assume. According to our
sensitivity analysis, we estimate that a US$1,000/ton shift in
nickel prices would result in a IDR500 billion–IDR700 billion
shift in EBITDA over 2022 and 2023."
A supportive financial policy for ANTAM will be key to improving
the credit profile. ANTAM increased investments in downstream
nickel could test the company's ability to curtail or defer capital
expenditure and dividends amid volatile market conditions, so as to
maintain its debt-to-EBITDA ratio below 3x. Although ANTAM is not
bound by a strict dividend policy, the company is likely to have to
strike a balance between investing in growth projects and paying
dividends to its parent, PT Indonesia Asahan Aluminium (Persero),
also known as INALUM. ANTAM's likely strategy will be supported by
our view that the company will not be a material contributor of
cash dividends to INALUM, and that its leverage will not be
significantly different with that of the group.
S&P said, "We do not expect the credit profile of INALUM to be a
constraint on any upward rating action on ANTAM, given that our
view the parent's credit profile is likely to remain stronger than
that of ANTAM. INALUM's credit strength is supported by a record
and increasing visibility of cash dividends from PT Freeport
Indonesia. The growing operational integration between ANTAM and
the group, as well as ANTAM's strategic involvement in the electric
vehicle battery segment, underpins our view that ANTAM will remain
a strategically important subsidiary of INALUM.
"The positive outlook reflects the probability that we may upgrade
ANTAM over the next 12-18 months if the company continues to
improve its business scale and vertical integration, while
maintaining a debt-to-EBITDA ratio below 3x.
"We may revise the outlook to stable if there are indications in
ANTAM's strategy that it is unable to materially improve its scale
and vertical integration. A revision of the outlook to stable could
also occur if the company's financial risk profile worsens such
that its debt-to-EBITDA ratio sustains above 3x.
"We may raise the rating if ANTAM demonstrates its ability to
operate at a larger scale through a combination of organic projects
and investments, supporting an increase in nickel ore sales to
above 15 million wmt and ferronickel production of close to 35,000
TNi while maintaining its cost base and debt-to-EBITDA ratio below
3x."
ESG credit indicators: E-3, S-4, G-3
=========
J A P A N
=========
MITSUI E&S: Egan-Jones Retains CCC- Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company on June 29, 2022, retained its 'CCC-'
foreign currency and local currency senior unsecured ratings on
debt issued by Mitsui E&S Holdings Co., Ltd. EJR also retained its
'D' rating on commercial paper issued by the Company.
Headquartered in Chuo City, Tokyo, Mitsui E&S Holdings Co., Ltd.
offers shipbuilding services.
TOSHIBA CORP: TEPCO Mulls Joining JIC, PE Firm in Takeover Bid
--------------------------------------------------------------
The Japan Times reports that Japan's top utility company Tokyo
Electric Power Company Holdings is considering joining a
partnership between state-backed investment fund Japan Investment
Corp. and a local private equity firm in bidding to take over
Toshiba Corp., according to people familiar with the matter.
The largest power utility in Japan, known as Tepco, is looking to
secure Toshiba's nuclear business, the people said. Foreign funds
have approached JIC to join the bid, according to people familiar
with the matter, the report relates.
JIC and Japan Industrial Partners are partnering up because they
don't have enough funds on their own, they said. While foreign
funds have approached JIC for potential joint offers, it's too
early to tell who the JIC-JIP group will partner with or whether
they will proceed with their own bid, the people, as cited by the
Japan Times, said.
A Tepco spokesman said it wasn't among companies that have
submitted proposals to Toshiba, without elaborating on the
potential JIC and JIP partnership, according to Reuters. Toshiba
spokeswoman Midori Hara declined to provide details of proposals
and potential partners for the company. Toshiba said last month it
received eight offers to buy out the conglomerate and two proposals
for capital and business alliances.
Tepco's net income plummeted by 97% from a year earlier to about
JPY5.6 billion ($41 million) for the financial year that ended
March 31, the report discloses. Its shares fell as much as 9.5% on
July 5 in their biggest decline since Sept. 30. The stock was still
up about 105% this year. Toshiba shares dropped as much as 1.8% on
July 5.
"There's a positive and a negative side to the report, but given
how Tepco shares have been surging, investors are taking it as an
opportunity to take profit," the report quotes Shoichi Arisawa, an
analyst at Iwai Cosmo Securities, as saying. "It depends on how
much money Tepco is willing to put in. This company doesn't have
much money to begin with. Investors could be seeing it as the
company getting involved in unnecessary matter."
Bain Capital, CVC Capital Partners and JIC are among potential
bidders for Toshiba, the report discloses. Foreign investors have
been watching developments at Toshiba to gauge shareholder
influence and regulators' acceptance of foreign private equity
firms in Japan.
Any sale of Toshiba, which owns key nuclear technologies, would
require approval from the government. Toshiba is categorized as a
company of interest to national security under the Foreign Exchange
and Foreign Trade Act for its nuclear expertise.
The Japan Times says Toshiba is deeply involved in the effort to
clean up Tepco's wrecked Fukushima No. 1 nuclear power plant,
developing technology to remove debris and treat radioactive water.
The nuclear power plant suffered from a meltdown back in 2011 amid
the destructive earthquake and tsunamis on March 11.
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
=====================
CHARTWELL ACCOUNTANTS: Placed Into Liquidation
----------------------------------------------
Grant Bruce Reynolds of Reynolds & Associates on July 5, 2022, was
appointed as liquidator of Chartwell Accountants Limited.
The liquidator may be reached at:
Reynolds & Associates Limited
PO Box 259059
Botany
Auckland 2163
GRADUATE CULTURAL: Court to Hear Wind-Up Petition on July 21
------------------------------------------------------------
A petition to wind up the operations of Graduate Cultural and
Internship Programme Limited will be heard before the High Court at
Christchurch on July 21, 2022, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on May 27, 2022.
The Petitioner's solicitor is:
Gabrielle McGillivray
Inland Revenue, Legal Services
PO Box 1782
Christchurch 8140
LAVENDER COTTAGE: McDonald Vague Appointed as Receivers
-------------------------------------------------------
Colin Sanderson and Iain McLennan of McDonald Vague on July 5,
2022, were appointed as receivers and managers of Lavender Cottage
2021 Limited.
The Receivers may be reached at:
McDonald Vague Limited
Level 1,136, Greenlane East
Greenlane
Auckland
NIKAU PROCESSORS: Creditors' Proofs of Debt Due on Aug. 19
----------------------------------------------------------
Creditors of Nikau Processors 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 July 4, 2022.
The company's liquidator is:
Garry Whimp
Blacklock Rose Limited
PO Box 6709
Victoria Street West
Auckland 1142
SUPERSCAPES LANDSCAPE: Court to Hear Wind-Up Petition on July 15
----------------------------------------------------------------
A petition to wind up the operations of Superscapes Landscape
Supplies Limited will be heard before the High Court at Auckland on
July 15, 2022, at 10:00 a.m.
Nicola Karen Baxter filed the petition against the company on March
30, 2022.
The Petitioner's solicitor is:
Aaron Nicholls
Nicholls Law Limited
Level 1, 43 High Street
Auckland 1010
=================
S I N G A P O R E
=================
BRAND NEW MEDIA: Creditors' Proofs of Debt Due on Aug.5
-------------------------------------------------------
Creditors of Brand New Media (Singapore) Pte. Ltd., Jacksonville
Bridge Pte. Ltd., and Ancora Innovation And Technology Group Pte.
Ltd. are required to file their proofs of debt by Aug. 5, 2022, to
be included in the company's dividend distribution.
The company commenced wind-up proceedings on June 27, 2022.
The company's liquidators are:
Don M Ho
David Ho Chjuen Meng
c/o DHA+ pac
63 Market Street
#05-01A Bank of Singapore Centre
Singapore 048942
ENETT SERVICES: Creditors' Proofs of Debt Due on Aug. 5
-------------------------------------------------------
Creditors of Enett Services Pte. Ltd. are required to file their
proofs of debt by Aug. 5, 2022, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on June 28, 2022.
The company's liquidator is:
Ee Meng Yen Angela
EY Corporate Advisors
c/o One Raffles Quay North Tower 18th Floor
Singapore 048583
QINGJIAN REALTY: Commences Wind-Up Proceedings
----------------------------------------------
Members of Qingjian Realty (Anchorvale) Pte Ltd, on June 27, 2022,
passed a resolution to voluntarily wind up the company's
operations.
The company's liquidators are:
Koh Geok Hoon
Koh Ee Koon
380 Jalan Besar
#06-06, ARC 380
Singapore 209000
TERAS ORANDA: Commences Wind-Up Proceedings
-------------------------------------------
Members of Teras Oranda Pte. Ltd., Teras Conquest 7 Pte. Ltd.,
Teras Conquest 3 Pte. Ltd., Teras Conquest 5 Pte. Ltd., and Teras
Wallaby Pte. Ltd. on July 28, 2022, passed a resolution to
voluntarily wind up the company's operations.
The company's liquidators are:
Oon Su Sun
Lin Yueh Hung
c/o RSM Singapore
8 Wilkie Road
#03-08 Wilkie Edge
Singapore 228095
VDC HOLDINGS: Creditors' Proofs of Debt Due on Aug. 5
-----------------------------------------------------
Creditors of VDC Holdings Pte. Ltd. are required to file their
proofs of debt by Aug. 5, 2022, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on July 5, 2022.
The company's liquidators are:
Najeeb Assan
Zalinah Samade
80 Robinson Road #15-02
Singapore 068898
=====================
S O U T H K O R E A
=====================
KOREA GAS: Egan-Jones Hikes Senior Unsecured Ratings to BB+
-----------------------------------------------------------
Egan-Jones Ratings Company on June 28, 2022, upgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by Korea Gas Corporation to BB+ from BB.
Headquartered in Daegu, South Korea, Korea Gas Corporation
manufactures, wholesales, and distributes liquefied natural gas
(LNG) and liquefied petroleum gas (LPG) throughout South Korea.
=================
S R I L A N K A
=================
SRI LANKA: Now a 'Bankrupt Country', Prime Minister Says
--------------------------------------------------------
Channel News Asia reports that Sri Lanka is bankrupt and the acute
pain of its unprecedented economic crisis will linger until at
least the end of next year, Prime Minister Ranil Wickremesinghe
told parliament on July 5.
According to the report, the island nation's 22 million people have
endured months of galloping inflation and lengthy power cuts after
the government ran out of foreign currency to import vital goods.
CNA relates that Wickremesinghe said the once-prosperous country
will go into deep recession this year and acute shortages of food,
fuel and medicine will continue.
"We will have to face difficulties in 2023 as well," the premier
said. "This is the truth. This is the reality."
Inflation reached 54.6% in June as the Indian Ocean nation battles
its worst economic crisis in decades, and the central bank is
expected to raise rates at its next policy announcement today, July
7, to rein in prices, according to the report.
Wickremesinghe said Sri Lanka's ongoing bailout talks with the
International Monetary Fund (IMF) depended on finalising a debt
restructuring plan with creditors by August, CNA relays.
"We are now participating in the negotiations as a bankrupt
country," the prime minister said. "Therefore, we have to face a
more difficult and complicated situation than previous
negotiations."
CNA adds that despite a suspension of repayments on about US$12
billion of foreign debt in April, Wickremesinghe said Sri Lanka
still had payments of nearly US$21 billion lined up until the end
of 2025.
It faces strong headwinds, with the central bank estimating a
contraction in growth of 4 to 5 per cent this year, with inflation
to hit 60 per cent by year-end, he said, though the government
targets a smaller contraction of 1 per cent in growth next year.
After reaching a staff-level agreement with the IMF, Sri Lanka aims
to hold a donor conference with "friendly countries" such as China,
India and Japan to secure more loans through a "common agreement",
Wickremesinghe told lawmakers.
Last week, the IMF said talks with Sri Lanka had been
"constructive", raising hopes it would soon grant preliminary
approval for a desperately needed financial support package, CNA
reports.
According to CNA, analysts warn that rate hikes will have little
impact in reducing galloping prices, however, since they are
largely being driven by higher fuel costs.
Sri Lanka is currently almost completely without petrol and the
government has shut down non-essential public services in an effort
to conserve fuel.
This week, authorities extended a closure of schools, told public
servants to work from home and limited fuel distribution to
essential services as the country struggles to pay for new fuel
shipments, the report says.
The crisis comes after COVID-19 hammered the tourism-reliant
economy and slashed remittances from overseas workers.
It has been compounded by the build-up of huge government debt,
rising oil prices and a ban on the import of chemical fertilisers
last year that devastated agriculture, the report notes.
As recently reported in the Troubled Company Reporter-Asia Pacific,
S&P Global Ratings, on May 27, 2022, affirmed its long-term and
short-term foreign currency sovereign ratings on Sri Lanka at
'SD/SD.' At the same time, S&P affirmed its 'CCC-' long-term and
'C' short-term local currency sovereign ratings. The outlook on the
local currency ratings remains negative.
In addition, S&P lowered to 'D' from 'CC' the issue ratings on the
following bonds with missed interest payments in May:
-- US$1.5 billion, 6.85% bonds due Nov. 3, 2025.
-- US$1.5 billion, 6.20% bonds due May 11, 2027.
S&P's transfer and convertibility assessment at 'CC' is unchanged.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2022. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
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thereof are US$25 each. For subscription information, contact
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