/raid1/www/Hosts/bankrupt/TCRAP_Public/220727.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
Wednesday, July 27, 2022, Vol. 25, No. 143
Headlines
A U S T R A L I A
BEAM HQ: Second Creditors' Meeting Set for Aug. 3
DIVERSE SERVICES: Second Creditors' Meeting Set for Aug. 3
FLYING GEESE: Second Creditors' Meeting Set for Aug. 3
NEW WORLD: First Creditors' Meeting Set for Aug. 2
OVATO LIMITED: First Creditors' Meeting Set for Aug. 2
VIEWBLE MEDIA: ASIC Disqualifies Ex-Director for Four Years
C H I N A
CHINA EVERGRANDE: Expects to Reveal Restructuring Plan This Week
I N D I A
AFFIL VITRIFIED: ICRA Assigns B+ Rating to INR18cr LT Loan
ALUMAYER INDIA: Insolvency Resolution Process Case Summary
ANJANEYA EXPORTS: CRISIL Keeps D Debt Ratings in Not Cooperating
ASHA RAM: CRISIL Keeps D Debt Rating in Not Cooperating Category
BLUE DUCK: CARE Keeps D Debt Rating in Not Cooperating Category
DEVA DRILL: ICRA Withdraws B+ Rating on INR1.95cr Term Loan
FUCON TECHNOLOGIES: CRISIL Keeps D Ratings in Not Cooperating
FUTURE RETAIL: Insolvency Resolution Process Case Summary
FUTURE RETAIL: S&P Cuts ICR to 'D' & Then Withdraws Rating
G. R. MULTIFLEX: CRISIL Keeps D Debt Ratings in Not Cooperating
GYMPAC FITNESS: Insolvency Resolution Process Case Summary
HEAVEN TEXTILES: Insolvency Resolution Process Case Summary
IMPEX INDIA-DEHRADUN: CRISIL Keeps D Ratings in Not Cooperating
LANCOR HOLDINGS: CARE Hikes Rating on INR53.03cr LT Loan to B+
MADHUSUDAN THREADS: ICRA Withdraws B+ Rating on INR13.27cr Loan
MONGA IRON: CRISIL Keeps D Debt Ratings in Not Cooperating
NANGALI AGRO: CRISIL Keeps D Debt Rating in Not Cooperating
NEELKANTH PULP: ICRA Keeps B+ Debt Rating in Not Cooperating
NEW ASIAN: CRISIL Keeps D Debt Rating in Not Cooperating Category
O. C. SWEATERS: CARE Reaffirms C Long Term Bank Loan Rating
PARAMOUNT WHEELS: CRISIL Keeps D Debt Ratings in Not Cooperating
PRIME TECHNOPLAST: CRISIL Keeps D Debt Rating in Not Cooperating
RAHEJA ICON: CARE Keeps D Debt Rating in Not Cooperating Category
RAMA KRISHNA: CRISIL Keeps D Debt Ratings in Not Cooperating
S. S. T. PACKAGING: CRISIL Keeps D Ratings in Not Cooperating
SADHNA COMMUNICATIONS: Insolvency Resolution Process Case Summary
SOUTH INDIAN: CRISIL Keeps D Debt Ratings in Not Cooperating
SUDAMO IMPEX: ICRA Withdraws B+ Rating on INR5.50cr LT Loan
SUDARSHAN TEXTILES: ICRA Withdraws B+ Rating on INR2.50cr Loan
TAURIAN ENGINEERING: Insolvency Resolution Process Case Summary
TOPLON INDUSTRIES: CRISIL Keeps D Debt Ratings in Not Cooperating
V4 INFRASTRUCTURE: Insolvency Resolution Process Case Summary
VREP CONSTRUCTION: CRISIL Keeps C Debt Rating in Not Cooperating
YAK GRANITE: CRISIL Keeps C Debt Ratings in Not Cooperating
I N D O N E S I A
CIKARANG LISTRINDO: S&P Affirms 'BB+' LT ICR, Outlook Stable
M O N G O L I A
DEVELOPMENT BANK: Fitch Affirms 'B' IDR; Outlook Stable
KHAN BANK: Fitch Affirms 'B' LongTerm IDR, Outlook Stable
XACBANK LLC: Fitch Affirms 'B' LongTerm IDR, Outlook Stable
N E W Z E A L A N D
GECKO INSTALLATIONS: Court to Hear Wind-Up Petition on July 28
LIQUOR WORLD: Creditors' Proofs of Debt Due on Aug. 19
MAXIMUM PRECISION: Court to Hear Wind-Up Petition on July 28
NOURISH HOSPITALITY: Court to Hear Wind-Up Petition on July 28
NWP2014 LIMITED: Court to Hear Wind-Up Petition on July 28
S I N G A P O R E
ADELPHI REALTY: Commences Wind-Up Proceedings
ASCEND FIELD: Creditors' Meetings Set for Aug. 2
JUBILANT PHARMA: Fitch Lowers IDR to BB- & Then Withdraws Rating
SHL ELECTRICAL: Creditors' Meetings Set for Aug. 3
THREE ARROWS CAPITAL: Liquidators Form Creditors Committee
THREE ARROWS CAPITAL: Seeks Singapore Recognition of BVI Cases
THREE ARROWS: Genesis Files $1.2 Billion Claim
ZIPMEX PTE: Seeks $50 Million After Freezing Crypto Withdrawals
ZIPMEX PTE: Thailand Probes Potential Losses for Users
S O U T H K O R E A
DAEWOO SHIPBUILDING: Creditor Warns of Bankruptcy Over Strike
S R I L A N K A
SRI LANKA: Asks China for Help with Trade, Investment and Tourism
SRI LANKA: Taiwan's Financial Exposure was NT$3BB, FSC Says
- - - - -
=================
A U S T R A L I A
=================
BEAM HQ: Second Creditors' Meeting Set for Aug. 3
-------------------------------------------------
A second meeting of creditors in the proceedings of Beam HQ Pty Ltd
has been set for Aug. 3, 2022, at 11:00 a.m. via Microsoft Teams
only.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Aug. 1, 2022, at 4:00 p.m.
Desmond Teng of Moore Recovery was appointed as administrator of
the company on July 1, 2022.
DIVERSE SERVICES: Second Creditors' Meeting Set for Aug. 3
----------------------------------------------------------
A second meeting of creditors in the proceedings of Diverse
Services (WA) Pty Ltd has been set for Aug. 3, 2022, at 11:00 a.m.
via teleconference facilities.
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 Aug. 2, 2022, at 4:00 p.m.
David Hurt and Jimmy Trpcevski of WA Insolvency Solutions were
appointed as administrators of the company on June 9, 2022.
FLYING GEESE: Second Creditors' Meeting Set for Aug. 3
------------------------------------------------------
A second meeting of creditors in the proceedings of Flying Geese
Pty Ltd has been set for Aug. 3, 2022, at 2:30 p.m. via Zoom
meeting.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Aug. 2, 2022, at 5:00 p.m.
Nicholas David Cooper and Dominic Charles Cantone of Oracle
Insolvency Services were appointed as administrators of the company
on June 29, 2022.
NEW WORLD: First Creditors' Meeting Set for Aug. 2
--------------------------------------------------
A first meeting of the creditors in the proceedings of New World
Enterprise Corporation Pty Ltd will be held on Aug. 2, 2022, at
11:00 a.m. via teleconferencing facilities.
Liam Bailey of O'Brien Palmer was appointed as administrator of the
company on July 21, 2022.
OVATO LIMITED: First Creditors' Meeting Set for Aug. 2
------------------------------------------------------
A first meeting of the creditors in the proceedings of:
- Ovato Limited
- PMP Property Pty Ltd
- Ovato Print Cairns Pty Ltd
- Ovato Packaging Pty Ltd
- Pacific Publications Holdings Pty Ltd
- Attic Futura Pty Ltd
- Pacific O'Brien Publications Pty Ltd
- Total Sampling Pty Ltd
- PMP Publishing Pty Ltd
- PMP Advertising Solutions Pty Ltd
- PMP Home Media Pty Ltd
- Shomega Pty Ltd
- Show-Ads Pty Ltd
- Linq Plus Pty Ltd
- PMP Wholesale Pty Ltd
- The Argus & Australiasian Pty Ltd
- PMP Directories Pty Ltd
- Argyle Print Pty Ltd
- Red PPR Holdings Pty Ltd
- Ovato Finance Pty Ltd
- Manningtree Investments Pty Ltd
- Canberra Press Pty Ltd
- IPMG Holdco Pty Ltd
- IPMG Subco Pty Ltd
- Propsea Pty Ltd
- MJV Pty Ltd
- Tigerstone Pty Ltd
- KTAR Pty Ltd
- PMP Subco No.1 Pty Ltd
- PMP Subco No.2 Pty Ltd
- PMP Subco No.3 Pty Ltd
- PMP Subco No.4 Pty Ltd
- PMP Subco No.5 Pty Ltd
- PMP Subco No.6 Pty Ltd
- D. Livingston Pty Ltd
- IPMG Pty Ltd
- Hannan Finance Corporation Pty Ltd
- IPMG Administration Pty Ltd
- NDD Distribution Pty Ltd
- Southern Independent Publishers Pty Ltd
- The Federal Publishing Co Pty Ltd
- IPMG Management (No. 2) Pty Ltd
- IPMG Digital Pty Ltd
- Forty Two International Pty Ltd
- Holler Australia Pty Ltd
- Holler Administration Pty Ltd
- IPMG Consulting Pty Ltd
- Massmedia Studios Pty Ltd
- Max Australia Pty Ltd
- Spin Comm Syd Pty Ltd
- The Gang of 4 Pty Ltd
- The independent Print Media Group Pty Ltd
- Craft Printing Pty Ltd
- SYNC Communications Management Pty Ltd
- Warwick Farm Business Park Pty Ltd
- Woodox Pty Ltd
- Offset Alpine Printing Group Pty Ltd
- Offset Alpine Printing Pty Ltd
- Kierle Investment Pty Ltd
will be held on Aug. 2, 2022, at 2:00 p.m. at the offices of via
electronic means only.
Chris Hill, Ben Campbell and Ross Blakeley of FTI Consulting were
appointed as administrators of Ovato Limited et al. on July 21,
2022.
VIEWBLE MEDIA: ASIC Disqualifies Ex-Director for Four Years
-----------------------------------------------------------
Australian Securities and Investments Commission (ASIC) has
disqualified former Viewble Media director David Reid, of Pelican
Waters, Queensland, from managing corporations for four years due
to his involvement in the failure of two companies.
Between 2015 and 2019, Mr. Reid was a director of:
- Viewble Media Pty Ltd (ACN 606 991 628); and
- Jasdav Trading Pty Ltd (ACN 616 227 948).
The companies operated a business which involved the installation
and lease of audio-visual equipment at the premises of small
business owners.
ASIC found that Mr. Reid failed to meet his obligations as a
director when he:
* failed to ensure that Viewble Media complied with
its Australian Taxation Office lodgement obligations,
* allowed the companies to enter into agreements with
more than 4,500 small business owners under a
business model that was similar to those operated
by companies he was associated with in the UK and
USA, which had previously proven to be unsustainable
and resulted in the small business owing debts, and
* improperly used his position to cause Viewble Media
to make unreasonable or excessive payments to
himself of more than AUD2.1 million.
The total amount owed to creditors across the two companies is
estimated to be almost AUD101 million, of which approximately
AUD42,000 is owed to the Australian Taxation Office.
In disqualifying Mr. Reid, ASIC relied on supplementary reports
lodged by liquidators Michael Dullaway of Pearce & Heers and Joseph
Hansell of FTI Consulting. ASIC assisted Mr. Dullaway and Mr.
Hansell to prepare their reports by providing funding from the
Assetless Administration Fund.
Mr. Reid is disqualified from managing corporations until July 13,
2026.
Mr. Reid has the right to seek a review of ASIC's decision by the
Administrative Appeals Tribunal.
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C H I N A
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CHINA EVERGRANDE: Expects to Reveal Restructuring Plan This Week
----------------------------------------------------------------
Reuters reports that China Evergrande Group, the world's most
indebted developer, is expected to announce this week a debt
restructuring plan that will not only determine its future but also
indicate how Beijing plans to overcome a deepening property sector
crisis.
With more than $300 billion in debt, Evergrande has been at the
centre of China's property quagmire since last year as the company
struggled to repay suppliers, creditors, and investors in wealth
management products after Beijing launched measures to control
developers' high debt levels, the report notes.
Reuters says the liquidity squeeze at Evergrande, whose entire
$22.7 billion worth of offshore debt including loans and private
bonds is deemed to be in default, subsequently engulfed other
Chinese developers as their credit conditions deteriorated, and
drove several smaller firms to defaults.
Evergrande's eagerly anticipated offshore-debt restructuring plan,
which China's formerly top-selling developer has said it will
announce by end-July, is expected to serve as a template for its
cash-starved peers, according to Reuters.
"We're all waiting for Evergrande's proposal to get an idea of the
terms and it'll set a benchmark," said a senior executive of a
property developer who has done dollar-bond swaps and is currently
in talks with advisers on a restructuring, Reuters relays. "No
firms would want to be the first because that'd be tremendous
pressure."
The restructuring proposal, though, will come at a time when
China's macroeconomic conditions have deteriorated and the property
sector is witnessing unprecedented challenges.
The world's second-biggest economy, of which the property sector
accounts for a quarter, only narrowly missed a contraction in the
second quarter.
Moreover, Beijing is scrambling to reassure homebuyers who are
threatening to stop paying mortgages on unfinished housing
projects, in rare protests that's set to spur a shakeout among
developers.
Some offshore creditors of Evergrande told Reuters that there was
still disagreement on how it should repay and reorganise the debt,
which could result in a delay in implementing the restructuring.
But the developer's newly appointed CEO Siu Shawn told the 21st
Century Business Herald late on July 22 that the firm had reached
basic consensus with several major offshore creditors on the
principles and framework of the restructuring proposal, Reuters
relays.
Investors will also be closely watching the role the state will
play in the restructuring proposal.
According to Reuters, Evergrande began talks with its offshore
creditors about a restructuring proposal earlier this year, after
advisers for a group of dollar bondholders demanded more
transparency from the developer.
Reuters reported in May, citing sources, that Evergrande was
considering repaying offshore public bondholders owed around $19
billion with cash instalments and equity in two of its Hong
Kong-listed units.
After unveiling the restructuring proposal, the firm aimed to reach
consensus with its creditors on specific terms by the end of this
year, a separate source told Reuters earlier this month.
In mainland China, Evergrande has been extending its debt repayment
obligations, though creditors are growing impatient, Reuters
notes.
Reuters relates that the developer's latest repayment extension
proposal on a CNY4.5 billion (US$666.7 million) bond was voted down
this month, while small suppliers, who are owed money, are also
threatening to stop paying bank loans.
Evergrande also aimed to release a simple restructuring plan for
its onshore debt as early as this week, financial information
provider REDD reported on July 22, adds Reuters.
Raymond Cheng, head of China and Hong Kong research at CGS-CIMB
Securities, said Evergrande's proposal should also outline what it
will do with its unsold projects and existing land bank, which
would have a direct impact on the broader property market.
"Investors will not look at Evergrande's proposal solely from a
company perspective, but also a macro perspective," Reuters quotes
Mr. Cheng as saying.
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 in June
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 subsidiaries
have 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.
=========
I N D I A
=========
AFFIL VITRIFIED: ICRA Assigns B+ Rating to INR18cr LT Loan
----------------------------------------------------------
ICRA has assigned rating to the bank facilities of Affil Vitrified
Private Limited (AVPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term– 18.00 [ICRA]B+(Stable); Assigned
Cash credit
Long term- 2.41 [ICRA]B+(Stable); Assigned
UGECL
Long term–
Term loan 20.34 [ICRA]B+(Stable); Assigned
Short term– 4.30 [ICRA]A4; Assigned
Letter of
Guarantee
Short term– 0.70 [ICRA]A4; Assigned
ILC/FLC
Rationale
The assigned ratings are constrained by AVPL weak financial risk
profile, characterised by its modest scale operations, low
profitability levels, high working capital intensity and stretched
liquidity position. The ratings consider the recently concluded
debt-funded capital expenditure, which has resulted in weak capital
structure and coverage indicators. The ratings factor in the
intense competition in the ceramic industry and the exposure of the
company's profitability to the volatility in raw material and fuel
prices. The ratings further note that AVPL's operations and cash
flows are vulnerable to the cyclicality in the real estate
industry, which is the main end-user sector.
The ratings, however, favourably factor in the extensive experience
of the promoters in the ceramic industry and its association with
other ceramic entities like Asian Granito India Limited (AGL, rated
at [ICRA]A+ (Stable)/[ICRA]A1), which mitigates its offtake risk.
The ratings also note the company's proximity to raw material,
power and fuel sources, by virtue of its presence in Morbi
(Gujarat).
The Stable outlook on the [ICRA]B+ rating reflects ICRA's opinion
that AVPL is expected to maintain its business positioning in the
ceramic industry.
Key rating drivers and their description
Credit strengths
* Extensive experience of promoters: The company is managed by
directors who have an extensive experience in the ceramic industry
through their association with other ceramic entities like AGL
(rated at [ICRA]A+ (Stable)/[ICRA]A1). Further, AVPL's arrangement
with AGL Group for offtake of double charge vitrified tiles (~60%)
mitigates the offtake risk to an extent.
* Location-specific advantage: The company benefits from easy
access to quality raw materials, power and fuel sources, owing to
the plant's strategic location in the Morbi region of Gujarat,
which is considered to be the ceramic hub of India.
Credit challenges
* Weak financial risk profile: AVPL's scale of operations remained
modest with an operating income of INR101 crore in FY2022, with
around 48% of the revenues coming from trading activity. The
operating margins stood low at 1.8% in FY2022 and the company has
been reporting net losses since FY2018 due to inefficiencies of the
old plant. This along with recently concluded debt-funded capital
expenditure towards replacement of its existing plant resulted in
weak capital structure and coverage indicators, with gearing at
16.2 times, Total Debt/OPBDITA at 29.4 times and DSCR at 0.5 times
in FY2022. Consequently, the debt repayments were supported by
infusion of unsecured loans by promoters and other related parties.
Further, the working capital intensity remained high because of
elongated receivables and high inventory holding. Consequently, the
creditors remained stretched to support the liquidity.
* Vulnerability of profitability to adverse fluctuations in raw
material and fuel prices: Raw material (body clay, feldspar and
glazed frit) and fuel (PNG) are the two major cost components for
the company. Thus, its profitability remains susceptible to
fluctuations in raw material and fuel prices, given AVPL's limited
ability to pass on the rise to customers amid the intense industry
competition.
* Intense competition and cyclicality in real estate industry - The
ceramic tile industry is characterised by stiff competition because
of low entry barriers. The presence of both organised and numerous
unorganised players in the industry limits AVPL's pricing
flexibility and the bargaining power with customers, thereby
putting pressure on its revenues and margins. Further, the
company's profitability and cash flows are highly vulnerable to the
cyclicality in the real estate industry, which is the major
end-user of ceramic tiles.
Liquidity position: Stretched
AVPL's liquidity is stretched because of high working capital
requirements, resulting in full utilisation of its working capital
limits and impending debt repayments, which is expected to remain
tightly matched with its cash accruals. Thus, timely support from
promoters through equity infusion/unsecured loans will remain
crucial in case of any cash flow mismatches.
Rating sensitivities
Positive factors - ICRA could upgrade AVPL's ratings if sustained
increase in revenues and profitability leads to higher-thanexpected
cash accruals. This, along with better working capital management
and significant improvement in net worth, resulting in an
improvement in the overall financial risk profile, may trigger a
rating upgrade.
Negative factors - Pressure on AVPL's ratings could arise if a
decline in revenues and profitability leads to lower-than-expected
cash accruals, or if any major debt-funded capital expenditure or
stretch in the working capital cycle, weakens the company's capital
structure and liquidity profile.
Affil Vitrified Private Limited, incorporated in 2010, is
manufactures double charge vitrified tiles. Its manufacturing
facility is located at Morbi, Rajkot (Gujarat), having an installed
capacity of around 50 lakh square metre per annum (increased from
around 28 lakh square metre per annum).
ALUMAYER INDIA: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Alumayer India Private Limited
Office No. 1002 10th Floor
Building No. A1 Rupa Solitaire
Sector 1, Mbp
Mahape Navi Mumbai
Thane MH 400710
IN
Insolvency Commencement Date: July 15, 2022
Court: National Company Law Tribunal, Pune Bench
Estimated date of closure of
insolvency resolution process: January 2, 2023
Insolvency professional: Mr. Rajas Shreeram Bodas
Interim Resolution
Professional: Mr. Rajas Shreeram Bodas
Survey No. 997/18
Satsang Society
Suraksha Apartments
Navi Peth, Near Vaikunth
Pune, Maharashtra 411030
E-mail: rajasbodas1@gmail.com
alumayercirp@gmail.com
Last date for
submission of claims: July 29, 2022
ANJANEYA EXPORTS: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sree Anjaneya
Exports - Tirupur (SAE) continue to be 'CRISIL D/CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Purchase- 1.5 CRISIL D (Issuer Not
Discounting Cooperating)
Facility
Export Packing 3.5 CRISIL D (Issuer Not
Credit Cooperating)
Proposed Long Term 0.7 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 0.3 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SAE for
obtaining information through letters and emails dated April 20,
2022 and June 8, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SAE, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SAE
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SAE continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Established in 1997 as a partnership firm, SAE manufactures and
exports readymade garments. Its manufacturing facility is based out
of Tirupur, Tamil Nadu.
ASHA RAM: CRISIL Keeps D Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Asha Ram Tek
Ram Educational Trust (ARTRET) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with ARTRET for
obtaining information through letters and emails dated April 20,
2022 and June 8, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of ARTRET, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
ARTRET is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of ARTRET continue to be 'CRISIL D Issuer Not
Cooperating'.
ARTRET, registered in 2011, operates Asha Jyoti Vidyapeeth School
in Faridabad (Haryana). The school is affiliated to the Central
Board of Secondary Education. Mr Satyavir Dagar and Mrs Prem Lamba
are the key promoters.
BLUE DUCK: CARE Keeps D Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Blue Duck
Textiles Private Limited (BDTPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.35 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 June 3, 2021,
placed the rating(s) of BDTPL under the 'issuer non-cooperating'
category as BDTPL 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. BDTPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 19, 2022, April 30, 2022, May 9, 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).
Ghaziabad-based (Uttar Pradesh) BDTPL was originally incorporated
in the year 1948 as a private limited company under the name of
Webbing and Belting Factory Private Limited for carrying out the
business of fabric dyeing and printing industry. It was later
rechristened to BDTPL in April, 2013, to engage in the business of
printing and dyeing of white fabric. BDTPL is promoted by
Mr. Shantanu Kaul and Mrs. Gitanjali Kaul and currently operates
from its sole manufacturing unit located in Sikandrabad (Uttar
Pradesh).
DEVA DRILL: ICRA Withdraws B+ Rating on INR1.95cr Term Loan
-----------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Deva Drill Tech (India) Limited at the request of the company and
based on the No Objection certificate (NOC) received from its
banker. However, ICRA does not have information to suggest that the
credit risk has changed since the time the rating was last
reviewed. The Key Rating Drivers, Liquidity Position, Rating
Sensitivities, Key financial indicators have not been captured as
the rated instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based 1.95 [ICRA]B+ (Stable); ISSUER NOT
Term Loans COOPERATING; Withdrawn
Fund based 18.00 [ICRA]B+ (Stable)/[ICRA]A4;
Working Capital ISSUER NOT COOPERATING;
Facilities Withdrawn
Non-Fund based- 16.00 [ICRA]A4; ISSUER NOT
Working Capital COOPERATING; Withdrawn
Facilities
Deva Drill Tech (India) Private Limited (DDTIL) is a 100%
export-oriented unit which manufactures specialty chemicals. It was
established by Mr. Mohankumar in the year 1987 in Maharashtra.
DDTIL was incorporated in foreign collaboration with Deva
Technology, UK, though the collaboration ended in 1998. The company
was initially set up as a blending unit with concentrate being
imported from overseas. Subsequently, from the year 2000 the
company moved into backward integration, i.e. manufacturing of
bases. In 2002, the company entered into production of flow
improvers. The company currently manufactures a whole range of
specialty chemicals required in different facets of the crude oil
industry, i.e. drilling, cementation, workover, production and
transportation of oil and gas and has a manufacturing capacity of
15,000 MTPA at its plant located at Mahad, Maharashtra. The company
has also set up a drums manufacturing facility in FY2020.
FUCON TECHNOLOGIES: CRISIL Keeps D Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Fucon
Technologies Limited (FTL) continue to be 'CRISIL D/CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft Facility 2.9 CRISIL D (Issuer Not
Cooperating)
Working Capital 11.6 CRISIL D (Issuer Not
Demand Loan Cooperating)
CRISIL Ratings has been consistently following up with FTL for
obtaining information through letters and emails dated April 20,
2022 and June 8, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of FTL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on FTL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
FTL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
FTL, incorporated by Mr. Rahul Parikh in 1999, provides various
anti-ageing car-care services such as anti-corrosive treatment,
Teflon coating, car interior cleaning and engine coating and
flushing. It is an authorized car-careservices provider for Maruti
Suzuki India Ltd, Hyundai Motors India Ltd and Mahindra & Mahindra.
Currently, its operations are ceased.
FUTURE RETAIL: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Future Retail Limited
2nd Floor, Future Group Office
SOBO Brand Factory
Pt. Madan Mohan Malviya Marg
Cross Road Tardeo, Mumbai
Maharashtra 400034, India
Insolvency Commencement Date: July 20, 2022
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: January 16, 2023
(180 days from commencement)
Insolvency professional: Vijaykumar V. Iyer
Interim Resolution
Professional: Vijaykumar V. Iyer
Deloitte India Insolvency
Professionals LLP
One International Center
Tower 3, 32nd Floor
Senapati Bapat Marg
Elphinstone Road (West)
Maharashtra 400013
E-mail: viyer@deloitte.com
infrlip@deloitte.com
Last date for
submission of claims: August 3, 2022
FUTURE RETAIL: S&P Cuts ICR to 'D' & Then Withdraws Rating
----------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Future Retail Ltd. to 'D' from 'SD'. S&P also lowered the issue
rating on the US$500 million senior secured notes issued by the
company to 'D' from 'CC'.
S&P has subsequently withdrawn all the ratings.
S&P lowered its issuer and issue rating on Future Retail because
the company failed to pay the semi-annual coupon due on its US$500
million senior secured notes. The coupon was due on July 22, 2022.
Future Retail is unlikely to make the payment during the 30-day
grace period. This is because insolvency proceedings against the
company were started on July 20, 2022. All outstanding payments to
creditors (including the coupon on the senior secured notes) have
to be submitted as claims. The company intends to complete the
insolvency resolution process by January 2023.
S&P has subsequently withdrawn all ratings.
G. R. MULTIFLEX: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of G. R.
Multiflex Packaging Private Limited (GMPL) continue to be 'CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 0.32 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 1.68 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with GMPL for
obtaining information through letters and emails dated April 20,
2022 and June 8, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of GMPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on GMPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
GMPL continue to be 'CRISIL D Issuer Not Cooperating'.
Incorporated in 2002 and promoted by members of the Kolkata-based
Jaiswal family, GRMPPL manufactures flexible packaging materials
such as polyester laminated rolls, multilayer flexible films, oil
print films, water printed films, and bags and pouches. The
company's manufacturing facilities are located in Kolkata and its
day-to-day operations are managed by its promoter-director, Mr.
Rabindar Jaiswal.
GYMPAC FITNESS: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Gympac Fitness Systems Private Limited
No. 7A/ New no. 15 Giri Road
T.Nagar, Chennai
TN 600017
IN
Insolvency Commencement Date: July 5, 2022
Court: National Company Law Tribunal, Chennai Bench
Estimated date of closure of
insolvency resolution process: December 28, 2022
Insolvency professional: G. Mukundan
Interim Resolution
Professional: G. Mukundan
29 A, HIG 977
First Main Road
Mogappair, ERI Scheme
Chennai, Tamil Nadu 600037
E-mail: g.mukundan1955@gmail.com
Last date for
submission of claims: July 19, 2022
HEAVEN TEXTILES: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Heaven Textiles Private Limited
Plot No. 31-32, Narayan Industrial Estate
Village: Jolwa, Taluka: Palsana
Surat, Gujarat 394305
India
Insolvency Commencement Date: July 19, 2022
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: January 14, 2023
Insolvency professional: Mr. Anurag Nirbhaya
Interim Resolution
Professional: Mr. Anurag Nirbhaya
204, Sagar Plaza
Plot No. 19
District Centre Laxmi Nagar
New Delhi 110092
E-mail: anurag@canirbhaya.com
cirp.htpl@gmail.com
Last date for
submission of claims: August 2, 2022
IMPEX INDIA-DEHRADUN: CRISIL Keeps D Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Impex
India-Dehradun (II-D) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Term Loan 0.87 CRISIL D (Issuer Not
Cooperating)
Term Loan 9.13 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with II-D for
obtaining information through letters and emails dated April 20,
2022 and June 8, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of II-D, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on II-D
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
II-D continues to be 'CRISIL D Issuer Not Cooperating'.
II-D was established as a partnership concern between Mr Rajendra
Mimani, Mrs Saroj Mimani, and Mr Ashish Mimani-with equal profit
sharing ratio-in 1973. The firm was involved in a marketing
business, but has now undertaken a solar power project, backed by a
long-term power purchase agreement with UPCL.
LANCOR HOLDINGS: CARE Hikes Rating on INR53.03cr LT Loan to B+
--------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Lancor Holdings Limited (LHL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 53.03 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE D; Stable
Short Term Bank 5.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed rationale and key rating drivers
The revision in the ratings assigned to bank facilities of LHL
factors in the improved debt servicing track record of the company
aided by improved sales and collections from ongoing projects and
re-phasement of debt from one of the lenders.
The ratings are constrained by moderate size of operations which
are primarily confined to Chennai region, project implementation
risk associated with the ongoing/new projects, inherent
cyclicality, and intense competition in the real estate industry.
The rating, however, derives strength from the long-standing
experience of the promoter in the real estate industry, established
track record of operations in the Chennai market and adequate land
bank availability providing scope for future developments.
Rating sensitivities
Positive factors – Factors that could lead to positive rating
action/upgrade:
* Improvement in sales and collection in respect of ongoing
projects along with reduction in debt on sustained basis.
* Improvement in leverage levels with overall gearing below 1.00x
on sustained basis.
Negative factors – Factors that could lead to negative rating
action/downgrade:
* Any large delays in the scheduled completion and slowdown in the
sales momentum of the ongoing projects
Detailed description of the key rating drivers
Key rating weaknesses
* Moderate project implementation risk: The company is currently
executing about five apartment/villa projects. The projects are in
various stages of construction. Some of the major ongoing projects
are Infinys which is located in Keelkattalai having total salable
area of 3.41 lsf and Harmonia which is located in Sriperumbudur
having total salable area of 3.32 lsf. Infinys and Harmonia are
expected to get completed by 2024 and 2026 respectively. As on
March 31, 2022 about 42% of the project cost has been incurred. The
total construction cost for the ongoing project is INR428.20 crore,
of which around INR177.97 crore (42% of construction cost) is
incurred as of March, 2022. The remaining cost required to complete
the ongoing project is INR250.23 crore, which shall be financed by
loan and customer advances.
* Exposure to intense competition in the real estate industry:
Chennai is home to quite a few IT/ ITES, manufacturing and
logistics companies and has been the preferred destination for
these industries since the last few years. This has led to a growth
in the residential market in Chennai. Nevertheless, the project
returns are exposed to current slowdown in the overall real estate
market, the tight credit market for real estate funding, the high
interest rate environment and the project profitability vulnerable
to fluctuations in construction material and labour costs. The real
estate market in Chennai is highly fragmented with a large number
of developers. The projects completed in the past and ongoing
projects are situated in the Chennai region. This exposes LHL to
the regional concentration risk which is partly mitigated by the
brand image enjoyed by the company in Chennai market.
Key rating strengths
* Long standing experience of the promoter & established track
record of operations in the Chennai market: LHL was incorporated in
the year 1985 and has over 30 years of operations in the Chennai
market. LHL is promoted by Mr.R.V Sekhar who has more than 40 years
of experience spanning FMCG, IT & Real estate. LHL's board consists
of seven other members which includes one non-executive chairman,
four independent directors and two non-independent directors. Mr.
R.V Sekhar (Chartered Accountant) is Managing director of the
company. Mrs. Mallika Ravi who is a Chartered Accountant with more
than 20 years of industry experience across IT & Real estate sector
is also actively engaged in the operations of the Lancor group from
2009. LHL has so far completed around 62 residential projects
involving saleable area of 40.59 lsft which includes few major
projects in Chennai namely The central park at sholinganallur (8.81
lsft completed in three phases), Abode valley at Potheri (8.31 lsft
completed in three phases) and The Atrium at Thiruvanmiyur (3.49
lsft) among many. This apart, LHL has also developed 8 commercial
properties in the past involving area of 4.68 lsqft.
* Adequate land bank availability in relation to existing size of
operations thereby providing scope for future development of
projects: LHL is credited with a large land bank in Sriperumbadur
(approximately 100 acres) which it intends to develop in phases.
The huge land bank allows the company to generate a higher return
on invested capital in view of the huge capital appreciation as
Sriperumbadur is the most popular industrial area and is home to
several automotive/auto parts companies such as Hyundai, BMW,
Nissan, Royal Enfield etc. LHL has four new projects planned,
namely 1) Town and Country (land sale in Sriperumbudur) 2) Lumina
(apartments in Guduvanchery), 3) Temple City (land in
Sriperumbudur) and 4) Temple City (apartment in Sriperumbudur).
Total estimated cost for new projects is approximately INR 244.96
crore (flats-Rs.166.78 crores, land INR77.98 crores), of which
around Rs 70.97 crore incurred (apartments: Rs 29.62 crore and
land: Rs 41.35 crore).
* Higher sales velocity and collection during FY22: During FY22,
LHL sold around INR166.39 crore as against sale of INR57.06 crore
for FY21 and collected around INR96.20 crore as against collection
of INR51.61 crore for FY21. During 3mFY23, LHL has sold around
INR40.22 crore and collected around INR34.15 crore. Amount
receivable from customers is around INR100 crores. The company's
ability to repay the obligation in the near term has improved due
to increase in sales and collection during the year.
Liquidity: Stretched
The cash balance as on March 31, 2022, stood at INR 3.72 crore. For
FY23, the total repayment obligation is around INR77.88 crore which
would be managed through project cashflows.
Incorporated in the year 1985, Lancor Holdings Limited is promoted
by Mr. R V Sekhar which is engaged primarily in development of
residential real estate projects in Chennai, Tamil Nadu. LHL has
also developed few commercial properties in the past. LHL has
completed sixty-two residential projects involving area of 40.59
lsf and eight commercial properties involving 4.68 lsft. As on
March 31, 2022, total shareholding of promoters in the company
stood at 62.08%. Currently it is executing 4 on-going residential
projects which has a salable area of 8.83 lsf.
MADHUSUDAN THREADS: ICRA Withdraws B+ Rating on INR13.27cr Loan
---------------------------------------------------------------
ICRA has withdrawn the rating assigned to the bank facilities of
Madhusudan Threads at the request of the company and based on the
No Objection Certificate (NOC) received from its banker. However,
ICRA does not have information to suggest that the credit risk has
changed since the time the rating was last reviewed. The Key Rating
Drivers, Liquidity Position, Rating Sensitivities, Key financial
indicators have not been captured as the rated instruments are
being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 13.27 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Withdrawn
Term Loan
Long Term- 3.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Withdrawn
Cash Credit
Long-term- 0.23 [ICRA]B+ (Stable); ISSUER NOT
Unallocated COOPERATING; Withdrawn
Established in 2015, MT is engaged in the dyeing of yarn and the
manufacturing of air texturised yarn. It commenced operations in
August 2017 from its manufacturing facility in Surat (Gujarat). The
firm has a manufacturing capacity of 550 metric tones per month for
yarn dyeing. The firm is a part of the MG, which has been operating
in the textile sector since 1982.
MONGA IRON: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Monga Iron
And Steel Private Limited (MISPL) continue to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term
Bank Loan Facility 6 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with MISPL for
obtaining information through letters and emails dated April 20,
2022 and June 8, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MISPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MISPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MISPL continue to be 'CRISIL D Issuer Not Cooperating'.
MISPL was set up in 1985 as a proprietorship firm, and was
reconstituted as a private limited company with the present name in
2008. The company trades in stainless steel products. Its
registered office is in New Delhi.
NANGALI AGRO: CRISIL Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Sri Nangali
Agro Tech Private Limited (SNA) continues to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 22 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SNA for
obtaining information through letters and emails dated April 20,
2022 and June 8, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SNA, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SNA
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SNA continue to be 'CRISIL D Issuer Not Cooperating'.
Incorporated in 1996 and promoted by Mr. Vijay Kumar, Mr. Satish
Kumar, and Mr. Anil Kumar, SNA manufactures wheatbased products
such as flour, maida, and sooji. Unit in Gurdaspur has processing
capacity of 120 tonne per day for each product.
NEELKANTH PULP: ICRA Keeps B+ Debt Rating in Not Cooperating
------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Neelkanth
Pulp & Paper Boards in the 'Issuer Not Cooperating' category. The
ratings are denoted as "[ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based 7.00 [ICRA]B+ (Stable); ISSUER NOT
Limit–Cash COOPERATING; Rating continues
Credit to remain under 'Issuer Not
Cooperating' category
Fund Based 3.48 [ICRA]B+ (Stable); ISSUER NOT
Limit–Term COOPERATING; Rating continues
Loan to remain under 'Issuer Not
Cooperating' category
Short Term- 7.94 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Neelkanth Pulp & Paper Boards (NPPB) was incorporated in the year
2010 for manufacturing kraft paper and is managed by Mr. Hitesh
Gondalia and other partners. The manufacturing operations commenced
from August 2011. The firm's manufacturing facility is located in
Rajkot (Gujarat) with an installed manufacturing capacity of 31000
MT per annum. NPPB primarily manufactures Kraft paper in varying
gram mage (100-300 Grams per sq. meter) and burst factor (16-22).
NEW ASIAN: CRISIL Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of New Asian
Infrastructure Development Private Limited (NAIDPL) continues to be
'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 25 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with NAIDPL for
obtaining information through letters and emails dated April 20,
2022 and June 8, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of NAIDPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
NAIDPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of NAIDPL continues to be 'CRISIL D Issuer Not
Cooperating'.
NAIDPL operates a setup a 7MW hydro power project in Nilwande in
Ahmednagar, Maharashtra on BOT basis. The unit commenced production
from November 2015. The company is promoted by Mr. Syed Abdur
Rasheed and his sons, Mr. Syed Abdur Zubair and Mr. Syed Abdur
Umair.
O. C. SWEATERS: CARE Reaffirms C Long Term Bank Loan Rating
-----------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
O. C. Sweaters LLP (OCSLLP), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term - Rating continues to remain
Bank Facilities under ISSUER NOT COOPERATING
category; Reaffirmed at CARE C;
Stable; ISSUER NOT COOPERATING
Short Term
Bank Facilities - Rating continues to remain
under ISSUER NOT COOPERATING
category; Reaffirmed at
CARE A4; ISSUER NOT
COOPERATING
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. has reaffirmed the outstanding ratings of 'CARE
C; Stable/CARE A4/ISSUER NOT COOPERATING' assigned to the bank
facilities of OCSLLP and simultaneously withdrawn with immediate
effect. The above action has been taken at the request of OCSLLP
and 'No Objection Certificate' received from the banks that have
extended the facilities rated by CARE Ratings Ltd. At the time of
last rating on March 22, 2022 the following were the rating
strengths and weaknesses:
Key Rating Weaknesses
* Customer concentration risk: OCSLLP has comparatively reduced its
concentration risk by reducing its sales to its group company
Orient Craft Limited (OCL) to 12.32% in FY20 (FY19: 52.19%) as the
firm has started directly selling to same ultimate customers but
top 5 global clients constitute around 86.63 % of total sales in
FY20 thus exposing the firm to concentration risk. The risk is
mitigated to some extent due to established relationship with
global clientele.
* Working capital intensive nature of operations: The average
working capital utilization of the firm is 88.28% in the last 12
months ended December 2020. The operating cycle improved to 159
days in FY21 (FY20: 69 days) which is due to increase in inventory
days to 182 days in FY21 from 85 in FY20.
* Presence in a fragmented and cyclical textile processing
industry: The textile processing industry is highly fragmented in
nature due to the presence of large number of unorganized players
leading to high competition in the industry. The profitability of
OCSLLP thus remains susceptible to any adverse fluctuations in the
raw material prices (including prices of dyes & chemicals).
Key Rating Strengths
* Experienced promoters and management: Mr Sudhir Dhingra, promoter
of Orient Craft Group, has over 46 years of experience in the
business of textile manufacturing and exports. He is ably assisted
by his daughter Ms Shilpa Dhingra and son Mr Sahil Dhingra who are
partners in this firm. The management team has rich experience in
the garment industry.
* Financial and operational support from promoters and group
company: OCSLLP is part of orient craft group thus benefits from
the rich experience of OCL in areas such as sourcing, finance,
marketing,
production management, supply chain and vendor management. Further,
OCSLLP and OCL have operational synergies with
both the entities having common top management.
OCSLLP, formerly Orient Craft Sweaters Pvt Ltd, was incorporated in
July 2011 and is part of Orient Craft Group. The firm is engaged in
the manufacturing of various types of knit wear products including
sweaters, cardigans, throws and blankets in the kids wear segment
with its manufacturing facility located in the industrial hub of
Manesar.
PARAMOUNT WHEELS: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Paramount
Wheels Private Limited (PWPL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 20.75 CRISIL D (Issuer Not
Cooperating)
Drop Line 4.25 CRISIL D (Issuer Not
Overdraft Cooperating)
Facility
Inventory Funding 5 CRISIL D (Issuer Not
Facility Cooperating)
Inventory Funding 10 CRISIL D (Issuer Not
Facility Cooperating)
CRISIL Ratings has been consistently following up with PWPL for
obtaining information through letters and emails dated April 29,
2022 and June 27, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of PWPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PWPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PWPL continues to be 'CRISIL D Issuer Not Cooperating'.
PWPL, incorporated in 2010, was promoted by Mr Sanjeev Arora and Mr
Rajeev Arora. It is an authorized dealer of MSIL on Mira Bhayandar
road near Mumbai for passenger cars manufactured by MSIL. It
operates from four sales outlets located in Mira Road (parent
outlet), Wada (extended outlet) and Dahisar (true value outlet) and
has also commissioned a Nexa showroom in March 2017. Along with the
sales outlets, the company also has four service outlets in Mira
Road, Wada and Goregaon, one driving school outlet in Mira Road. In
addition to sale of vehicles and spare parts, the company provides
a diversified portfolio of value added services including
insurance, registration, trade finance and annual maintenance
contracts.
PRIME TECHNOPLAST: CRISIL Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Prime
Technoplast Private Limited (PTPL) continues to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 50 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PTPL for
obtaining information through letters and emails dated April 20,
2022 and June 09, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of PTPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PTPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PTPL continues to be 'CRISIL D Issuer Not Cooperating'.
Incorporated in 2007, PTPL manufactures PP bags. Mr. Mehtab Hussain
manages the daily operations. The manufacturing facility is in
Howrah, West Bengal.
RAHEJA ICON: CARE Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Raheja Icon
Entertainment Private Limited (RIEPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non Convertible 68.00 CARE D; ISSUER NOT COOPERATING;
Debentures Rating continues to remain
Under ISSUER NOT COOPERATING
Category
Detailed rationale and key rating drivers
CARE had, vide its press release dated September 13, 2019, placed
the ratings of RIEPL under the 'Issuer Not Cooperating' category as
the company had failed to provide the requisite information
required for monitoring of the ratings as agreed to in its rating
agreement. Raheja Icon Entertainment Private Limited continues to
be noncooperative despite repeated requests for submission of
information through phone calls and emails dated June 28, 2022,
June 18, 2022 and June 8, 2022.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Incorporated in 2010, Raheja Icon Entertainment Private Limited
(RIEPL) is engaged in the business of promotion, development and
construction of real estate. The company is a part of the Raheja
Group with Flagship Company being Raheja Developers Limited (RDL),
rated CARE D; Issuer Not Cooperating and is 100% subsidiary of
RDL.
RAMA KRISHNA: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Rama Krishna
Spintex Private Limited (RKSPL) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.7 CRISIL D (Issuer Not
Cooperating)
Cash Credit 33 CRISIL D (Issuer Not
Cooperating)
Term Loan 35 CRISIL D (Issuer Not
Cooperating)
Term Loan 2.3 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with RKSPL for
obtaining information through letters and emails dated April 20,
2022 and June 9, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of RKSPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RKSPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RKSPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
RKSPL, incorporated in February 2007 at Bathinda (Punjab), spins
yarn, including grey cotton yarn, stubbed cotton yarn, and waxed
cotton yarn, which are used to manufacture denim fabric. Mr Makhan
Lal Mangla is the promoter.
S. S. T. PACKAGING: CRISIL Keeps D Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of S. S. T.
Packaging Private Limited (SSTPL) continue to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.5 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 0.2 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 5.2 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SSTPL for
obtaining information through letters and emails dated April 29,
2022 and June 8, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SSTPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SSTPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SSTPL continue to be 'CRISIL D Issuer Not Cooperating'.
SSTPL was incorporated on January 12, 2016, by the promoter, Mr
Tanmay Kumar. The company commenced operations from February 2018.
It manufactures polystyrene-based disposable plastic glasses, cups,
and similar products. The manufacturing facility is located in
Govindpur, Kolkata, with a capacity of 8,500 tonne per annum.
SADHNA COMMUNICATIONS: Insolvency Resolution Process Case Summary
-----------------------------------------------------------------
Debtor: Sadhna Communications Private Limited
5/6 S/F Side West Patel Nagar
New Delhi DL 110008
IN
Insolvency Commencement Date: July 19, 2022
Court: National Company Law Tribunal, Ghaziabad, U.P. Bench
Estimated date of closure of
insolvency resolution process: January 15, 2023
(180 days from commencement)
Insolvency professional: Mr. Manoj Kulshrestha
Interim Resolution
Professional: Mr. Manoj Kulshrestha
4F-CS-14, Ansal Plaza Mall
Vaishali, Opp. Dabur
Ghaziabad, Uttar Pradesh 201010
E-mail: costadviser@hotmail.com
cirp.sadhnacommunications@
gmail.com
Last date for
submission of claims: August 2, 2022
SOUTH INDIAN: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of South Indian
Constructions (SIC) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 6 CRISIL D (Issuer Not
Cooperating)
Cash Credit 5 CRISIL D (Issuer Not
Cooperating)
Cash Credit 7.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SIC for
obtaining information through letters and emails dated April 20,
2022 and June 8, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SIC, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SIC
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SIC continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Set up in 1992, SIC undertakes civil construction contracts for
various statutory bodies of the Kerala and Tamil Nadu governments.
The operations of the firm are managed by the proprietor Mr. Vinod
Kumar.
SUDAMO IMPEX: ICRA Withdraws B+ Rating on INR5.50cr LT Loan
-----------------------------------------------------------
ICRA has withdrawn the rating assigned to the bank facilities of
The Sudamo Impex Private Limited at the request of the company and
based on the No Objection certificate (NOC) received from its
banker. However, ICRA does not have information to suggest that the
credit risk has changed since the time the rating was last
reviewed. The Key Rating Drivers, Liquidity Position, Rating
Sensitivities, Key financial indicators have not been captured as
the rated instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Withdrawn
Cash Credit
Long Term- 5.17 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Withdrawn
Term Loan
Long Term- (7.68) [ICRA]B+ (Stable); ISSUER NOT
Interchangeable COOPERATING; Withdrawn
Others
Long Term- 3.08 [ICRA]B+ (Stable); ISSUER NOT
Unallocated COOPERATING; Withdrawn
Incorporated in 2006, Sudamo Impex Private Limited (SIPL) is
engaged in manufacturing polyester synthetic fabrics for suitings,
shirtings, sarees, dress materials, embroidered fabrics, and home
textiles. The company's registered office is in Surat (Gujarat) and
its weaving unit is at Palsana in Surat. It is part of the
Madhusudan Group, which has been engaged in the textile sector
since 1982.
SUDARSHAN TEXTILES: ICRA Withdraws B+ Rating on INR2.50cr Loan
--------------------------------------------------------------
ICRA has withdrawn the rating assigned to the bank facilities of
Sudarshan Textiles Private Limited at the request of the company
and based on the No Objection certificate (NOC) received from its
banker. However, ICRA does not have information to suggest that the
credit risk has changed since the time the rating was last
reviewed. The Key Rating Drivers, Liquidity Position, Rating
Sensitivities, Key financial indicators have not been captured as
the rated instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 2.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Withdrawn
Cash Credit
Long Term- 3.04 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Withdrawn
Term Loan
Long Term-
Unallocated 0.96 [ICRA]B+(Stable); ISSUER NOT
COOPERATING; Withdrawn
Incorporated in 1994, Sudarshan Textiles Private Limited (STPL) is
engaged in the dyeing and processing of grey fabric at Surat,
Gujarat. The fabric is provided by the client, while colours and
chemicals are bought by the firm for the dyeing process. The dyed
fabric is then supplied back to the customers, who may process them
further and use them in manufacturing dress materials.
TAURIAN ENGINEERING: Insolvency Resolution Process Case Summary
---------------------------------------------------------------
Debtor: Taurian Engineering Private Limited
63, 3rd Floor
107, Anand Ashram
Dr. R.G. Thadani Marg
Poddar Hospital, Worli
Mumbai, MH 400018
Insolvency Commencement Date: July 19, 2022
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: January 6, 2023
(180 days from commencement)
Insolvency professional: Mr. Kunal Jayant Waje
Interim Resolution
Professional: Mr. Kunal Jayant Waje
Plot no. 26, Snehal Bunglow
Gokulwadi, Shrirang Nagar
Gangapur Road, Near Rathi-Amrai
Nashik, Maharashtra
E-mail: ipkunalwaje@gmail.com
teplmum2022@gmail.com
Last date for
submission of claims: August 1, 2022
TOPLON INDUSTRIES: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Toplon
Industries Private Limited (TIPL) continue to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.5 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 6.5 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 2.5 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with TIPL for
obtaining information through letters and emails dated April 20,
2022 and June 8, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of TIPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on TIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
TIPL continue to be 'CRISIL D Issuer Not Cooperating'.
TIPL is setting up a manufacturing unit in Kathua (Jammu and
Kashmir) for grinding PET from PET bottles and scrap. The proposed
capacity of the facility is 3,000 kilogram per hour. The company is
promoted by Mr Daljit Singh Rana and Mr Kush Aggarwal.
V4 INFRASTRUCTURE: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: V4 Infrastructure Private Limited
452/15, First Floor
Bhushan Bhawan, Azadpur
New Delhi 110033
Insolvency Commencement Date: July 20, 2022
Court: National Company Law Tribunal, New Delhi Bench-IV
Estimated date of closure of
insolvency resolution process: January 15, 2023
Insolvency professional: Prabhat Kumar
Interim Resolution
Professional: Prabhat Kumar
1207 New Delhi House
27 Barakhamba Road
At Gate No. 6 of
Barakhamba Road Metro Station
New Delhi
National Capital Territory of Delhi
110001
E-mail: prabhat.agrawal@pngco.in
v4infra.cirp@gmail.com
Last date for
submission of claims: August 3, 2022
VREP CONSTRUCTION: CRISIL Keeps C Debt Rating in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Vrep
Construction and Consultants Private Limited (VCCPL) continue to be
'CRISIL C/CRISIL A4 Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 4.5 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 0.5 CRISIL C (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with VCCPL for
obtaining information through letters and emails dated April 20,
2022 and June 8, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of VCCPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VCCPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
VCCPL continue to be 'CRISIL C/CRISIL A4 Issuer Not Cooperating'.
VCCPL initially established as a partnership firm by Mr. S.
Saikumar (Mechanical engineer with 25 years of experience and
background for setting up of Industrial project for beverages,
breweries, dairy, garments, soaps & detergents etc) in 2008 with
registered office in Bangalore, Karnataka , was converted into a
private limited company in 2012. The company undertakes civil
works, mainly commercial and residential projects, from private
players by bidding through tenders. The promoters of the company
have over 25 years of experience in the construction industry.
YAK GRANITE: CRISIL Keeps C Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Yak Granite
Industries Private Limited (YGIPL) continue to be 'CRISIL C/CRISIL
A4 Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.25 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 6 CRISIL C (Issuer Not
Cooperating)
Letter of Credit 0.25 CRISIL A4 (Issuer Not
Cooperating)
Proposed Long Term 1.5 CRISIL C (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with YGIPL for
obtaining information through letters and emails dated April 20,
2022 and June 8, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of YGIPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on YGIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
YGIPL continue to be 'CRISIL C/CRISIL A4 Issuer Not Cooperating'.
Set up in 1982 by Mr Badri Narayan, YGIPL processes rough granite
blocks, monuments, and granite slabs. Operations are managed by Mr
Narayan.
=================
I N D O N E S I A
=================
CIKARANG LISTRINDO: S&P Affirms 'BB+' LT ICR, Outlook Stable
------------------------------------------------------------
S&P Global Ratings, on July 25, 2022, affirmed its 'BB+' long-term
issuer credit rating on Cikarang Listrindo Tbk. PT and the 'BB+'
long-term issue rating on the company's senior unsecured notes.
The stable outlook reflects S&P's expectation that Cikarang will
maintain stable cash flow and efficient operations over the next
12-18 months. It also expects the company to manage its cash
outflows and not undertake significant acquisitions that would
weaken its business and leverage profile.
Cikarang's management has provided greater clarity on its financial
policy, including its leverage tolerance level. Recently, Cikarang
articulated its financial policy, which includes a target for
leverage not exceeding 3.0x debt-to-EBITDA. S&P said, "In addition,
in anticipation of potential growth opportunities in the past
years, the company has maintained a high cash balance, which we
consider to be prudent. Given the management's record of financial
discipline and maintaining leverage in line with its financial
policy, we have revised the financial policy modifier to neutral
from negative. In our view, the event risk associated with future
debt-funded growth capital expenditure (capex) or shareholder
payouts is manageable for the current rating level. We expect that
growth plans, if any, will be undertaken in an incremental manner,
rather than aggressively. We also anticipate the company will be
able to exercise its flexibility in adjusting shareholder
distributions in the event of a huge capex plan."
Cikarang has sufficient rating headroom to accommodate potential
debt-funded capex and shareholder distributions. S&P said, "On the
back of the company's newly articulated leverage tolerance of 3.0x
debt-to-EBITDA, we believe it has headroom to embark on higher
capex. As such, we believe Cikarang will continue to explore growth
opportunities both within and outside of Indonesia. While there are
no major committed plans at this juncture, future projects will
likely have a focus on renewable energy, or on gas-based power
projects. That said, we expect the company's strong financials,
supported by its improving liquidity and consistently modest cash
outflows, to provide ample buffer to accommodate higher spending
and shareholder distributions. We estimate that Cikarang's ratio of
funds from operations (FFO) to debt could weaken to about 30% by
2023 if it undertakes sizable growth capex of about US$200 million,
coupled with annual outsized shareholder distributions of US$100
million. This ratio remains above our downward trigger of 20%."
In the absence of significant growth or acquisition plans, Cikarang
continues to bear a negative cash carry from its unutilized bond
proceeds. While management has been on a constant look out for
growth opportunities, the company has not had any significant
spending over the years and does not have any sizable plans in its
growth pipeline. S&P said, "In our view, this could indicate a
continuing high interest outgo, without commensurate cash flows
from new projects. In October 2021, Cikarang announced a proposed
issuance of US$600 million for partial or full redemption of its
existing US$550 million notes due 2026. While the proposed
refinancing exercise is dependent on favorable market conditions
and will likely be credit-neutral, in our view, large refinancing
without identified use of surplus funds creates a continuing
negative carry on the company's sizable cash holdings."
Cikarang's moderate generation capacity and asset concentration are
limiting factors for an investment grade rating. S&P said, "In our
view, the company has a narrow portfolio of three assets, with more
than 50% of generating capacity concentrated in the Jababeka
region. Compared to investment-grade peers such as Ratch Group
Public Co. Ltd. and Perusahaan Perseroan (Persero) PT Perusahaan
Listrik Negara (PLN), Cikarang operates at a smaller scale, has
fossil-fuel heavy asset concentration, and lacks clear energy
transition plans. We view these as limiting factors for an upgrade.
While we recognize Cikarang has increased its solar and biomass
capacities in recent years, these growth initiatives remain small
in scale and are largely supplemental in nature. We expect the bulk
of power demand to remain largely met by traditional sources of
generation, such as coal and gas. We could consider an upgrade if
the company significantly expands and diversifies its capacity,
with a greater share of renewables, while maintaining a
conservative capital structure."
Growth in electricity demand from industrial estates will support
Cikarang's cash flow in the next two years. The company continues
to benefit from good cash flow stability, driven by healthy demand
in the five industrial estates it serves, and a supportive tariff
structure that encompasses fuel cost pass-through. Power
consumption by industrial users at the five estates Cikarang serves
has increased by 10% year on year in the first quarter of 2022
following the resumption of most economic activities in Indonesia
and rising tenancy rates at the estates. Power consumption declined
16% in 2020 with the onset of COVID. Growth in the first quarter of
2022 was also backed by increasing demand from the data center
segment, which we believe will replace excess capacity from the
non-renewal of the 150 megawatts (MW) PLN contract. We anticipate
power consumption from industrial estates will grow at about 2%
annually in the next two years, supporting healthy EBITDA growth.
S&P said, "We expect Cikarang's EBITDA growth and modest cash
outflows to contribute to improving leverage over the next two
years. We estimate the company's ratio of FFO to debt will rise to
more than 55% in 2022 and 2023, driven by continued operating cash
flow from growing demand and modest capital spending. The resulting
high cash balance should support a gradual improvement in its
balance sheet. In 2021, Cikarang's FFO-to-debt ratio was 51%, up
from 46% in 2020. This was supported by lower spending and
dividends than we anticipated, contributing to a high cash balance
and consequently low net debt.
"We forecast continuing moderate capex requirements of about US$40
million each year over 2022 and 2023. Also, given no major
competing uses for cash, we forecast annual dividend payments of
US$80 million-US$85 million in the next one to two years,
representing more than 70% of net income. That said, we believe
Cikarang can adjust its dividends to shareholders to preserve cash
flow needs and meet its leverage target.
"The stable outlook reflects our expectation that Cikarang will
maintain stable cash flow and efficient operations, such that its
ratio of discretionary cash flow (DCF) to debt stays at about 10%
over the next 12-18 months. The outlook also reflects our view that
the company will manage its cash outflows and not undertake
significant acquisitions that would weaken its business and
leverage profile.
"We may lower the rating if Cikarang's cash flow adequacy
deteriorates markedly, with a ratio of FFO to debt approaching 20%
on a sustainable basis. This would most likely happen if the
company undertook aggressive new debt-funded investments beyond our
base case or aggressively enhanced shareholder returns, such that
DCF is persistently negative. In a less likely scenario,
significant operational issues or unscheduled shutdowns impeding
operating cash flow for a sustained period could also lead to
downward rating pressure.
"We view Cikarang's moderate generation capacity, fossil-fuel heavy
asset concentration, and lack of clear energy transition plans as
limiting factors for an upgrade over the next 12-18 months.
"We may raise the rating if the company significantly expands and
diversifies its capacity with a greater share of renewables, while
maintaining a conservative capital structure."
ESG credit indicators: E-4, S-2, G-2
S&P said, "Environmental factors are a negative consideration in
our credit rating analysis of Cikarang. The company is likely to
remain a fossil fuel-based power producer with capacity comprising
75% natural gas and the remainder coal. We believe Cikarang will
continue to face higher asset concentration and lack fuel diversity
when compared with peers'. That said, the company's fuel exposure
is in line with the country's energy policy and electrification
plans to provide low-cost energy. We do not envisage Indonesia's
proposed carbon tax to significantly impact Cikarang's earnings
quality in the next two to three years.
"We believe Cikarang has an adequate governance framework that is
in line with domestic peers. This reflects management's experience
and expertise in the power-generation business, as well as a good
record of project execution. We believe social risks are neutral
with established plants in a mature estate."
===============
M O N G O L I A
===============
DEVELOPMENT BANK: Fitch Affirms 'B' IDR; Outlook Stable
-------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings
(IDRs) of Mongolia's policy bank, Development Bank of Mongolia LLC
(DBM), at 'B'. The Outlook is Stable.
Fitch is withdrawing the Support Rating of '4' and Support Rating
Floor of 'B' because they are no longer relevant to the agency's
coverage following the publication of Fitch's updated Bank Rating
Criteria on November 12 2021. In line with the updated criteria,
Fitch has assigned a Government Support Rating (GSR) of 'b'.
KEY RATING DRIVERS
Support-Driven Ratings: The IDRs and GSR of DBM are equalised with
the IDRs of the Mongolian sovereign (B/Stable), reflecting Fitch's
assessment that the state has a strong propensity to provide
support for the bank, if required. This stems from DBM's policy
role, full state ownership, and close linkages with the government.
The Mongolian state remains the sole shareholder and the Ministry
of Finance chairs the bank's board, overseeing DBM's operations.
Policy Role to Support Economy: DBM, as the only policy financial
institution in Mongolia, has a specific mandate to finance projects
in important sectors that support the economy as per the
Development Bank of Mongolia Act. DBM plays an important role in
financing development projects initiated under the government's New
Revival Policy to improve Mongolia's transport infrastructure and
enhance its energy capacity in the medium to long term.
State Ownership: The DBM Act states the government's power to take
measures to ensure the sustainability of DBM's finances and
solvency. Fitch believes various forms of support from the
government for DBM will be available if needed. The government's
decision to restructure DBM's board of directors in early 2022 aims
to improve its operations and resolve asset-quality issues. The
government also issued a resolution to ensure the repayment of
loans provided to state-owned entities.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
IDRS AND GSR
Any negative rating action on the sovereign's IDRs would directly
prompt similar action on DBM's ratings.
DBM's Long-Term IDR and GSR may also be notched down from the
sovereign rating if Fitch believes that the sovereign's propensity
to support the bank will have been lower, even if the ability to
support remains unchanged. This could happen in the event that the
bank's policy role were to diminish, the state's stake in the bank
were to fall significantly, or the linkages between the two were to
weaken. Fitch does not expect these scenarios to occur in the
foreseeable future.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
IDRS AND GSR
An upgrade of DBM's Long-Term IDR and GSR would be likely if Fitch
were to upgrade the rating of the Mongolian sovereign, assuming no
changes in the sovereign's propensity to provide support.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
Senior Unsecured Debt: Fitch equalises the rating on the senior
unsecured debt with DBM's Long-Term IDR as they constitute direct,
unsecured and unsubordinated obligations of the bank. They rank
pari passu with DBM's other unsecured and unsubordinated
obligations, and they are subordinated to the secured debt of the
bank and the obligations of its subsidiaries. Fitch expects there
is a strong incentive for the state to provide support for the
bank, including its obligations, if required, as the
creditworthiness of DBM and the sovereign are closely linked. The
Recovery Rating of 'RR4' indicates typical recovery prospects of
31%-50%.
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
Senior Unsecured Debt: The rating of the senior unsecured debt is
sensitive to DBM's ratings, which would be led by a change in the
sovereign's IDRs or a change in Fitch's view on DBM's linkages with
government, including state ownership.
Recovery Rating: The Recovery Rating of the debt is sensitive to
Fitch's assessment of potential recoveries for creditors in the
case of default or non-performance. It could be downgraded if there
is a change in Fitch's assumptions on the quality or the recovery
rates of the assets.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Financial Institutions and
Covered Bond issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of four notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
DEBT RATING PRIOR
---- ------ -----
Development Bank
of Mongolia LLC
LT IDR B Affirmed B
ST IDR B Affirmed B
LC LT IDR B Affirmed B
Support WD Withdrawn 4
Support Floor WD Withdrawn B
Government Support b New Rating
senior unsecured LT B Affirmed RR4 B
KHAN BANK: Fitch Affirms 'B' LongTerm IDR, Outlook Stable
---------------------------------------------------------
Fitch Ratings has affirmed Mongolia-based Khan Bank LLC's Long-Term
Issuer Default Ratings (IDRs) at 'B' and Viability Rating (VR) at
'b'. The Outlook is Stable.
Fitch is withdrawing the Support Rating of '4' and Support Rating
Floor of 'B' because they are no longer relevant to the agency's
coverage following the publication of Fitch's updated Bank Rating
Criteria on November 12 2021. In line with the updated criteria,
Fitch has assigned a Government Support Rating (GSR) of 'b'.
KEY RATING DRIVERS
IDRs Reflect VR and GSR: Khan Bank's Long-Term IDRs are at the same
level as its VR and GSR, which are in line with Mongolia's
sovereign rating (B/Stable). The sovereign risks are incorporated
into Khan Bank's VR through the operating environment (OE) score
and the level of government support. Fitch expects Khan Bank to
maintain its intrinsic credit profile while restoring
capitalisation to higher levels, supported by its better-than-peer
profitability, especially when Mongolia's economic recovery
strengthens.
Growth Prospects Support OE: Fitch expects Mongolian banks to
benefit from the medium-term growth prospects in Mongolia's economy
as trade disruptions gradually decline and some government-driven
projects on cross-border infrastructure are implemented. Fitch
expects banks to stay cautious for the rest of 2022 after the
strong loan growth in 2021 and the first few months in 2022 due to
the central bank's monetary policy tightening in response to
inflationary pressure and broader external uncertainties.
We expect the banking sector's stability to remain a key priority
of the authorities, which comes at the expense of a deferral in the
IPOs of the domestic systemically important banks.
Substantial Domestic Franchise: Fitch's 'b+' assessment of Khan
Bank's business profile score is a notch higher than the OE score,
reflecting its substantial franchise in Mongolia with total asset
market share of around 33% at end-2021. The benefits are visible in
Khan Bank's higher-than-peer operating income and overall better
performance than that of other Mongolian banks, partly mitigating
some of OE challenges that influence the bank's business model,
such as changes in the economic environment, regulatory framework
and the state's policies.
Loan Growth to Moderate: Fitch expects Khan Bank's loan growth to
slow in the near term in light of the inflationary pressure and
global economic uncertainties. Loan growth was strong in 2021 at
about 33%, which was mostly driven by the government's support loan
programme. Fitch believes the tightened monetary policy in 1H22 is
likely to weaken the growth aspirations of commercial banks,
including Khan Bank.
Manageable Asset-Quality Deterioration: Khan Bank's impaired loans
are set to increase, reflecting the risk from high inflation.
However, the deterioration in asset quality should be manageable as
its impaired-loan ratio of 5.3% at end-2021 was lower than that of
the system and its peers. The loan loss allowance, including the
additional amount Khan Bank set aside for loans under relief
measures, rose to about 116% of impaired loans (2020: 102%).
Steady Profitability: Fitch expects the bank's earnings and
profitability to be stable despite loan growth moderating in 2022.
Higher policy rates would have short-term benefits for Khan Bank's
net interest margin while a rebound in economic growth in the
medium term would support the bank's earnings. Fitch believes the
potential near-term increase in credit costs will have a limited
impact on Khan Bank. Operating profit/risk-weighted assets rose to
5% in 2021 from 3.4% in 2020 on strong loan growth and lower
deposit costs.
Decline in Capitalisation: Khan Bank's Tier 1 ratio dropped to
15.6% in 2021, from 18.1% at end-2020, due to a sizeable dividend
payout and strong loan growth, but remained above the regulatory
requirement of 12% (or 13% since 1 July 2022). Fitch expects the
ratio to return to higher levels on the bank's strong internal
capital generation capacity, but a high dividend payout can be a
risk, if it significantly depletes capital levels notwithstanding
the benefit Fitch expects from a successful IPO in the future.
Domestic Franchise Buttresses Funding: Fitch expects the funding
and liquidity profile to remain adequate, anchored by the bank's
substantial domestic franchise. The bank accounted for over 35% of
system deposits at end-2021. The lending business is supplemented
by foreign-currency term funding from international financial
institutions, which comprised 6.7% of the bank's total funding at
end-2021.
State Favours Support: Fitch equalised the GSR with the sovereign
rating, reflecting Fitch's assessment that the sovereign - for its
given ability to provide support - has a higher propensity to
provide extraordinary support to Khan Bank than to other domestic
systemically important banks. The equalisation with the sovereign
rating is largely based on the bank's systemic importance due to
its size and large share of customer deposits. Mongolia's
re-capitalisation law provides grounds for sovereign support as
well as for a bail-in, should any domestic systemically important
bank need it.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
IDRS AND VR
Khan Bank's Long-Term IDRs could be downgraded if both its VR and
the GSR are downgraded. A sovereign rating downgrade is highly
likely to lead to a corresponding downgrade in Khan Bank's GSR,
Long-Term IDRs and VR, given the bank's substantial direct and
indirect exposure to sovereign credit.
Khan Bank's VR could also be downgraded if its business profile
were to be compromised by a structural weakening of its franchise
and higher risk appetite, and a weaker economic environment leads
to deterioration in a combination of the following metrics:
-- Impaired loans/gross loans increasing above 10% for a
sustained period (four-year average to 2021: 6.8%);
-- Operating profit/risk-weighted assets below 3% for a sustained
period (four-year average to 2021: 4.3%); and
-- The Fitch Core Capital ratio staying below 16%, while
maintaining a high dividend payout, without a credible path to
return the ratio above this level (end-2021: 16.1%).
GSR
The GSR could be downgraded if Fitch assesses that the sovereign's
ability to provide support has weakened, which could be indicated
by a sovereign downgrade. A downgrade could also be driven by
Fitch's view that the state's propensity to provide support has
diminished, which could be driven by a significant decline in the
bank's systemic importance and deposit market share, although this
is not Fitch's base case.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
IDRS AND VR
Khan Bank's Long-Term IDRs would be upgraded if its VR or GSR, or
both, were upgraded.
Khan Bank's VR is sensitive to developments in Mongolia's OE. A
sovereign rating upgrade, combined with steady and significant
progress towards a stronger legal and regulatory framework, could
open up the possibility of a VR upgrade. The VR upgrade would then
be more dependent on a sustained improvement in asset quality, with
an impaired-loan ratio consistently below 5%, and the maintenance
of a Fitch Core Capital ratio above 20%.
GSR
The GSR is equalised with the sovereign rating. It can be upgraded
only if the sovereign rating is upgraded and Fitch believes that
the propensity of sovereign support has not diminished.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Financial Institutions and
Covered Bond issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of four notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
DEBT RATING PRIOR
---- ------ -----
Khan LT IDR B Affirmed B
Bank LLC
ST IDR B Affirmed B
LC LT IDR B Affirmed B
Viability b Affirmed b
Support WD Withdrawn 4
Support Floor WD Withdrawn B
Government Support b New Rating
XACBANK LLC: Fitch Affirms 'B' LongTerm IDR, Outlook Stable
-----------------------------------------------------------
Fitch Ratings has affirmed Mongolia-based XacBank LLC's Long-Term
Issuer Default Ratings (IDRs) at 'B' and Viability Rating (VR) at
'b'. The Outlook is Stable.
Fitch is withdrawing the Support Rating of '5' and Support Rating
Floor of 'B-' because they are no longer relevant to the agency's
coverage following the publication of Fitch's updated Bank Rating
Criteria on November 12 2021. In line with the updated criteria,
Fitch has assigned a Government Support Rating (GSR) of 'b-'.
KEY RATING DRIVERS
Intrinsic Profile Drives Ratings: XacBank's IDRs are driven by its
standalone credit strength, which is represented by its VR. It is
conditioned by the uncertain operating environment (OE), which is
scored 'b'/stable to reflect the country's macroeconomic volatility
and capture the risks of the Mongolian sovereign (B/Stable). Fitch
expects the bank to maintain its intrinsic credit profile amid the
macroeconomic uncertainties.
Growth Prospects Support OE: Fitch expects Mongolian banks to
benefit from the medium-term growth prospects in Mongolia's economy
as the trade disruptions gradually decline and some
government-driven projects on cross-border infrastructure are
implemented. Fitch expects banks to stay cautious for the rest of
2022 after the strong loan growth in 2021 and the first few months
in 2022 as the central bank tightens monetary policy in response to
the inflationary pressure and broader external uncertainties.
Fitch expects the banking sector's stability to remain a key
priority of the authorities, which comes at the expense of a
deferral in the IPOs of the domestic systemically important banks.
Moderate Domestic Franchise: Fitch's assessment of XacBank's
business profile score of 'b' reflects its moderate franchise in
Mongolia, with total asset market share of around 9% at end-2021.
Fitch believes XacBank's business profile also benefits from its
governance and oversight from the most diversified shareholder
structure among local banks. However, the bank's business model is
sensitive to key aspects of the OE, such as changes in the economic
environment, regulatory framework and the state's policies.
Resuming Growth: Fitch expects the bank to focus on loan growth in
the medium term as the country's economic growth gains momentum.
XacBank's loans rose by 24% in 2021, driven by the government's
programme, following two years of contraction in its loan
portfolio. Its capital ratio is the highest among its close peers,
which provides capacity for growth. However, the pace of expansion
in 2022 is likely to be slower due to the tightened monetary
policy.
Manageable Asset-Quality Deterioration: Fitch believes XacBank's
impaired loans could rise because of the risks from faster
inflation and prolonged trade disruptions. However, the
deterioration in asset quality should be manageable as its impaired
loan ratio of 4.6% at end-2021 was lower than that of the system
and its peers. The bank's loan loss allowance coverage under IFRS
was moderate at 89% at end-2021, an increase from 71% at end-2020.
Stable Profitability: Fitch expects XacBank's earnings and
profitability to be stable even with moderating growth in 2022.
Profitability is likely to be supported by higher policy rates in
the near term and economic growth prospects in the medium term.
XacBank's operating profit/risk-weighted assets jumped to 5.7% by
end-2021 from 2.9% at end-2020 due to lower funding and credit
costs. The strong profitability should enhance XacBank's capacity
to absorb potentially higher credit costs from near-term
asset-quality pressure.
Higher-than-Peer Capital Buffer: Fitch has upgraded XacBank's
capitalisation and leverage score to 'b' from 'b-'. The upgrade
reflects its progressively improving capitalisation in the past few
years, backed by better profitability and reduced risk density. The
Tier 1 capital ratio dipped slightly to 17.1% by end-2021 from
17.4% at end-2020 after taking into account the merger with
XacLeasing LLC in November 2021. However, high loan growth and
dividend payouts could pose downside risk if they lead to capital
consumption that well exceeds Fitch's expectations.
Stable Deposit Franchise: Fitch expects XacBank's funding and
liquidity profile to remain adequate, with a steady domestic
franchise. Funding from international financial institutions, which
is mostly in foreign currency, formed 21% of the bank's total
funding at end-2021. Its customer deposits rose by about 11% in
2021, increasing the contribution of deposits to total funding to
74%.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
IDRS AND VR
A sovereign rating downgrade is highly likely to lead to a
corresponding downgrade in XacBank's Long-Term IDRs and VR, given
the bank's substantial exposure to the sovereign's credits directly
or indirectly.
XacBank's ratings could also be downgraded if its business profile
were compromised by a structural weakening of its franchise and
higher risk appetite. A downgrade could also come from a weaker
economic environment that leads to deterioration through a
combination of the following financial metrics:
-- Impaired loans/gross loans increasing and sustained above 10%
(four-year average to 2021: 5.4%);
-- Operating profit/risk-weighted assets sustained below 2%
(four-year average to 2021: 2.6%); and/or
-- The Fitch Core Capital ratio declining below 16% without a
credible path to return above this level (end-2021: 20%).
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
IDRS AND VR
XacBank's IDRs are driven by its VR, which is sensitive to
developments in Mongolia's OE. A sovereign rating upgrade, combined
with steady and significant progress towards a stronger legal and
regulatory framework, could open up the possibility of positive
rating action for XacBank, provided this is accompanied by
sustaining its profitability, with operating profit/risk-weighted
assets above 3.5% (end-2021: 5.7%), and capitalisation, with its
Fitch Core Capital ratio consistently above 20% (end-2021: 20%),
while maintaining loan quality at the current level.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
Limited Government Ability to Support: The GSR of 'b-' is a notch
below the sovereign rating, reflecting Fitch's view that while
there is government propensity to provide extraordinary support
based on the bank's status as one of the D-SIBs, it cannot be
relied upon because of the significant uncertainties over the
ability of the state to support XacBank. Mongolia's
re-capitalisation law provides grounds for sovereign support as
well as for a bail-in, should any D-SIB need it.
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
GSR
The bank's GSR is sensitive to changes in the sovereign rating or
Fitch's assumptions of the sovereign's propensity to provide
support, which could be triggered by a change in the bank's
systemic importance.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Financial Institutions and
Covered Bond issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of four notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
DEBT RATING PRIOR
---- ------ -----
XacBank LT IDR B Affirmed B
LLC
ST IDR B Affirmed B
LC LT IDR B Affirmed B
Viability b Affirmed b
Support WD Withdrawn 5
Support Floor WD Withdrawn B-
Government Support b- New Rating
=====================
N E W Z E A L A N D
=====================
GECKO INSTALLATIONS: Court to Hear Wind-Up Petition on July 28
--------------------------------------------------------------
A petition to wind up the operations of Gecko Installations Limited
will be heard before the High Court of New Zealand at Palmerst on
North on July 28, 2022, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on May 10, 2022.
The Petitioner's solicitor is:
Tara Nicola Carr
Legal Services
11 Jepsen Grove
Wallaceville
Upper Hutt 5018
LIQUOR WORLD: Creditors' Proofs of Debt Due on Aug. 19
------------------------------------------------------
Creditors of Liquor World Ellerslie 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 19, 2022.
The company's liquidator is:
Brenton Hunt
PO Box 13400
City East
Christchurch 8141
MAXIMUM PRECISION: Court to Hear Wind-Up Petition on July 28
------------------------------------------------------------
A petition to wind up the operations of Maximum Precision Builders
Limited will be heard before the High Court of New Zealand at
Palmerston North on July 28, 2022, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on June 17, 2022.
The Petitioner's solicitor is:
Tara Nicola Carr
Legal Services
11 Jepsen Grove
Wallaceville
Upper Hutt 5018
NOURISH HOSPITALITY: Court to Hear Wind-Up Petition on July 28
--------------------------------------------------------------
A petition to wind up the operations of Nourish Hospitality Group
Limited will be heard before the High Court of New Zealand at
Palmerston North on July 28, 2022, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on April 29, 2022.
The Petitioner's solicitor is:
Tara Nicola Carr
Legal Services
11 Jepsen Grove
Wallaceville
Upper Hutt 5018
NWP2014 LIMITED: Court to Hear Wind-Up Petition on July 28
----------------------------------------------------------
A petition to wind up the operations of NWP2014 Limited will be
heard before the High Court of New Zealand at Palmerston North on
July 28, 2022, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on June 9, 2022.
The Petitioner's solicitor is:
Tara Nicola Carr
Legal Services
11 Jepsen Grove
Wallaceville
Upper Hutt 5018
=================
S I N G A P O R E
=================
ADELPHI REALTY: Commences Wind-Up Proceedings
---------------------------------------------
Members of Adelphi Realty Pte Ltd, on July 19, 2022, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidator is:
Jason Aleksander Kardachi
Patrick Bance
Kroll Pte Limited
1 Raffles Place
Tower 2, #10-62
Singapore 048616
ASCEND FIELD: Creditors' Meetings Set for Aug. 2
------------------------------------------------
Ascend Field Pte Ltd will hold a meeting for its creditors on Aug.
2, 2022, at 3:00 p.m., via Zoom.
Agenda of the meeting includes:
a. to update the creditors on the status of the liquidation
of the Company;
b. to approve the Liquidators' fees and disbursements; and
c. any other business.
The company's liquidators are:
Leow Quek Shiong
Gary Loh Weng Fatt
c/o 600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
JUBILANT PHARMA: Fitch Lowers IDR to BB- & Then Withdraws Rating
----------------------------------------------------------------
Fitch Ratings has downgraded Singapore-based Jubilant Pharma
Limited's (JPL) Long-Term Issuer Default Rating (IDR) to 'BB-',
from 'BB'. The Outlook is Stable. Fitch has also downgraded the
company's senior unsecured rating and the rating on its USD200
million 6.00% senior unsecured notes due 2024 to 'BB-', from 'BB',
with a Recovery Rating of 'RR4'. All ratings have subsequently been
withdrawn.
The downgrade follows JPL's announcement of a further expansion of
its sterile product contract manufacturing business in Canada,
which, together with an earlier announcement in the US, takes the
segment's opportunistic capacity expansion close to USD270 million
in 2022. This will boost JPL's scale in the long term, but the rise
in expansion capex will coincide with lower profitability,
resulting in the deterioration of financial leverage significantly
above Fitch's previous negative rating sensitivity of 3.0x through
to the financial year ending March 2025 (FY25).
The Stable Outlook underscores Fitch's expectation that a gradual
improvement in profitability after FY23 will help JPL maintain
adequate leverage headroom under Fitch's revised negative threshold
of 4.5x. JPL's favourable market position in speciality
pharmaceutical-focused segments, as opposed to the more competitive
generic formulations segment, underpins its credit profile,
balanced by its smaller size than peers and the high degree of
regulatory risk arising from limited production-facility
diversification.
JPL's ratings have been withdrawn for commercial reasons. Fitch
will no longer provide ratings or analytical coverage of JPL.
KEY RATING DRIVERS
Leverage to Deteriorate: Fitch expects financial leverage -
measured by consolidated net debt/EBITDA - to reach 3.7x-3.8x over
FY23 and FY24, from 2.4x in FY22. Better profitability should help
reduce leverage to 3.2x in FY25, but this is still above Fitch's
previous downgrade sensitivity of 3.0x. The expansion will nearly
double JPL's contract manufacturing capacity and boost its EBITDA
after commissioning and ramp up, but this is likely to occur only
after FY25.
JPL will partly fund the announced expansion using the funding
provided by governments in the US and Canada to boost local
manufacturing capability and be better prepared for medical
emergencies. JPL intends to take a prudent approach to growth
investments after these projects. Nonetheless, the revised negative
rating threshold of 4.5x has some leverage headroom should the
company pursue further opportunistic investments.
Lower Profitability: Fitch forecasts lower volume and a narrower
margin of 11%, against 15% in FY22, to result in lower EBITDA in
FY23, which Fitch adjusts to remove capitalised R&D expenses. A
slow volume recovery at JPL's high-margin radiopharma business will
coincide with higher R&D spending and the tapering of the Covid-19
pandemic-related uplift in the contract manufacturing and generic
dosage segments.
JPL is also shifting its active pharmaceuticals ingredients (API)
business to its parent, Jubilant Pharmova Limited (JPHL), and Fitch
expects pricing pressure to weigh on the profitability of its
generic segment, despite the normalisation of one-off factors in
2HFY22. Fitch's estimates do not factor in yet-to-be approved
products and hence remain more conservative than JPL's FY25
expectations.
Small Scale; Specialty Focus: Fitch believes JPL's focus on
radiopharma, contract manufacturing and allergy therapy - which
make up the bulk of EBITDA - limits pricing pressure exposure in
the US generic-pharmaceutical market. JPL is the third-largest
participant by sales in North America's small radiopharma market,
with some of its top products enjoying limited competition. It is
also among the region's leading contract manufacturer of sterile
injectables, the second-largest company in the allergenic extract
market and the sole supplier of venom products.
Regulatory Risk: JPL is exposed to above-average regulatory risk
due to its small scale and limited number of production plants
compared with global peers. The resolution of adverse actions by
the US Food and Drug Administration on its API and generic dosage
plants in India is key for new product approvals in the US market.
Nonetheless, JPL has low dependence on generic drugs, particularly
after considering the proposed transfer of its API business to its
parent. The impact will be greater if US drug pricing policies or
any adverse regulatory actions affect JPL's specialty segments.
Parent and Subsidiary Linkage: Fitch assesses JPL's Standalone
Credit Profile (SCP) at the same level as that of its parent, as
JPL accounts for the bulk of JPHL's consolidated operations and
debt. Fitch expects the impact on JPL's SCP from the proposed API
business transfer to be limited, considering the segment's low
EBITDA contribution and JPHL's investment in the contract and
proprietary research business outside of JPL group. JPHL controls
JPL's management and funding strategy through its 100% stake and
there are limited restrictions on intercompany flows.
Notes Rated Same as IDR: JPL's notes are rated at the same level as
its IDR, as they represent its direct, unconditional, unsecured and
unsubordinated obligations. JPL's low secured and prior-ranking
debt/EBITDA ratio alleviates subordination risk. The senior notes'
indenture also limits prior-ranking debt to 0.2x of JPL's
consolidated assets, subject to certain carve-outs.
DERIVATION SUMMARY
JPL has a smaller scale, with limited geographic diversification,
than larger generic-pharmaceutical peers, Viatris Inc. (BBB/Stable)
and Teva Pharmaceutical Industries Limited (BB-/Stable). Teva's
elevated leverage amid litigation and continued pricing pressure on
generic drugs in the US counterbalances this, underscoring its
rating at the same level as JPL.
Glenmark Pharmaceuticals Ltd (BB/Stable) has a larger and more
geographically diversified pharma business than JPL. JPL's greater
presence in specialty pharmaceuticals limits its exposure to
ongoing pricing pressure in the US generic-pharmaceutical market,
but Fitch expects its profitability to be weaker than that of
Glenmark over the next few years. JPL's one-notch lower rating also
underscores its significantly higher leverage.
JPL's lower rating compared with Hikma Pharmaceuticals PLC
(BBB-/Stable) underscores Hikma's larger scale, better
diversification and stronger financial profile, which is
characterised by higher profitability and lower leverage.
Ache Laboratorios Farmaceuticos S.A. (BB/Negative) benefits from
solid market positioning and a stronger financial profile than JPL,
although Brazil's Country Ceiling of 'BB' constrains its rating.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
-- Revenue to fall by 8% over FY23, with growth in the
radiopharma segment partly offsetting lower revenue from
pandemic-related opportunities and the absence of API revenue
post demerger. Revenue to increase by high-single-digits in
FY24;
-- EBITDA margin to decline to 11% in FY23, before improving to
14% in FY24 on radiopharma segment growth;
-- Annual capex to average 16% of sales over FY23 and FY24 amid
capacity expansion in the contract manufacturing segment;
-- Annual dividend payout of USD13 million over FY23 and FY24.
RATING SENSITIVITIES
Rating sensitivities are no longer applicable given the rating
withdrawal.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: JPL's consolidated unrestricted cash balance of
USD112 million as of FYE22 was sufficient to cover USD61 million in
near-term debt maturities and modestly negative free cash flow in
FY23. JPL has also signed a new five-year bank loan of USD400
million. This will enable it to prepay USD350 million, or more than
90% of total debt at FYE22 ahead of maturities over FY23 and FY24,
including USD200 million of notes due March 2024. The new debt will
also meet a portion of free cash deficit over FY24 and FY25.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
DEBT RATING RECOVERY PRIOR
---- ------ -------- -----
Jubilant LT IDR BB- Downgrade BB
Pharma Limited
LT IDR WD Withdrawn BB-
senior unsecured LT BB- Downgrade BB
senior unsecured LT WD Withdrawn BB-
senior unsecured LT BB- Downgrade RR4 BB
senior unsecured LT WD Withdrawn BB-
SHL ELECTRICAL: Creditors' Meetings Set for Aug. 3
--------------------------------------------------
SHL Electrical Engineering Pte Ltd will hold a meeting for its
creditors on Aug. 3, 2022, at 10:00 a.m., via Zoom.
Agenda of the meeting includes:
a. to update the creditors on the status of the liquidation
of the Company;
b. to appoint a Committee of Inspection for the purpose of
such winding up; and
c. to consider any other matters which may be brought before
the meeting.
The company's liquidator is:
Farooq Ahmad Mann
M/s Mann & Associates PAC
3 Shenton Way
#03-06C Shenton House
Singapore 068805
THREE ARROWS CAPITAL: Liquidators Form Creditors Committee
----------------------------------------------------------
The liquidators of Three Arrows Capital Ltd. said they conducted an
initial meeting with creditors on July 18, 2022, in accordance with
British Virgin Islands law.
At the meeting, the creditors in attendance either in person or by
proxy voted to establish a committee of unsecured creditors. The
creditors elected these creditors to serve on the committee:
* Voyager Digital LLC,
* Digital Currency Group Inc.,
* CoinList Lend, LLC,
* Blockchain Access UK Ltd, and
* Matrix Port Technologies (Hong Kong) Ltd.
Russell Crumpler and Christopher Farmer of Teneo (BVI) Limited in
the British Virgin Islands are serving as liquidators of 3AC.
According to Mr. Crumpler, the Committee will work closely with the
liquidators to maximize the value of the assets available for
distribution. The Committee's role is to support the liquidators
by acting as a consultative body, and providing approval where
appropriate, with respect to asset realization and disposal
strategies, investigations, and other key aspects of the
liquidation process.
Mr. Crumpler disclosed that as of July 18, 2022, they have obtained
control of assets of the Debtor in excess of $40 million and have
received claims documentation for unsecured claims in excess of
$2.8 billion, a figure which they expect to increase
significantly.
The liquidators also disclosed July 18, 2022 that they have been in
connection with the attorneys of 3AC's founders regarding certain
digital assets and bank accounts that we believe are in their
possession or control. Those discussions remain ongoing.
Separately, Latham & Watkins has sent subpoenas via email to the
founders' counsel requesting that counsel accept service on behalf
of the Founders. Their counsel has refused to date, and the
liquidators are currently considering ways to obtain the requested
information or effectuate alternative service.
Advocatus Law LLP and Solitaire LLC are serving as the Founders'
Singapore counsel.
About Three Arrows Capital
Three Arrows Capital Ltd. was an investment firm engaged in
short-term opportunities trading, and is heavily invested in
cryptocurrency, funded through borrowings. As of April 2022, 3AC
was reported to have over $3 billion of assets under its
management.
3AC was incorporated as a business company under the laws of the
British Virgin Islands. Its sole shareholder owning all of its
"management shares" is Three Arrows Capital Pte. Ltd., which
previously operated as a regulated fund manager in Singapore until
2021, when it shifted its domicile to the BVI, as part of a global
corporate plan to relocate operations to Dubai.
3AC borrowed digital and fiat currency from multiple lenders to
fund its cryptocurrency investments. After cryptocurrency lost 99%
of its value, and then prices of other cryptocurrencies had rapid
declines, 3AC reportedly defaulted on its obligations.
On June 24, 2022, one of 3AC's many creditors -- DRB Panama Inc.
-- filed an application to appoint joint provisional liquidators
-- and thereafter, full Liquidators -- in the Eastern Caribbean
Supreme Court in the High Court of Justice (Commercial Division)
located in BVI. The application was assigned claim number
BVIHCOM2022/0117.
Subsequently, on June 27, 2022, 3AC filed its own application for
the appointment of joint liquidators before the BVI Commercial
Court.
On June 29, 2022, the Honorable Mr. Justice Jack of the BVI
Commercial Court appointed Russell Crumpler and Christopher Farmer
of Teneo (BVI) Limited as 3AC's joint liquidators.
On July 1, 2022, the 3AC liquidators filed a Chapter 15 bankruptcy
in the U.S. (Bankr. S.D.N.Y. Case No. 22-10920) to seek recognition
of the BVI proceedings. Judge Martin Glenn is the case judge.
Latham & Watkins LLP and Holland & Knight LLP are serving as the
liquidators' U.S. counsel.
The law firm of Ogier, led by Grant Carroll, is advising the
liquidators in the BVI proceedings.
THREE ARROWS CAPITAL: Seeks Singapore Recognition of BVI Cases
--------------------------------------------------------------
The liquidators of Three Arrows Capital Ltd. said in a U.S. court
filing that on July 9, 2022, they commenced a proceeding in the
High Court of Singapore for recognition of liquidation proceedings
in the British Virgin Islands court as a foreign main proceeding in
Singapore.
Following a hearing before the Honorable Justice Vinodh
Coomaraswamy in Singapore for provisional relief pending the
application for recognition held on July 15, 2022, the Singapore
Court entered an order granting us certain provisional relief.
Specifically, the Singapore Order (i) (x) prohibits the
commencement and continuation of individual actions or individual
proceedings concerning the Debtor's property, rights, obligations,
or liabilities, (y) stays execution against the Debtor's property
in Singapore, and (z) suspends the right to transfer, encumber, or
otherwise dispose of any of the Debtor's property; (ii) entrusts
the administration or realization of all of the property and assets
of the Debtor in Singapore to liquidators, Teneo's Russell Crumpler
and Christopher Farmer, and (iii) empowers the liquidators to
compel the cooperation of individuals within the jurisdiction of
the Singapore Court as if the Debtor were a Singapore-incorporated
entity under liquidation in Singapore.
The hearing on the application for recognition is tentatively
scheduled for August 22, 2022 at 11:00 a.m. SGT before the
Honorable Justice Coomaraswamy.
To recall, the Debtor has had certain significant operations in
Singapore. Three Arrows Capital Pte. Ltd., the Debtor's parent and
principal shareholder, has a registered office located at 7 Temasek
Boulevard, #21-04 Suntec Tower One, Singapore 038987. That address
is also associated with the Debtor and is listed on the Debtor's
website.
Swiftly upon appointment of the Liquidators, on June 28, 2022, Mr.
Farmer travelled to Singapore to visit the Debtor's offices but the
offices already appeared vacant. While the current physical
location of the founders (Zhu Su and Kyle Livingstone Davies)
remains unknown, founder Zhu is rumored to be attempting to sell a
property in Singapore with a potential value in the tens of
millions of dollars.
About Three Arrows Capital
Three Arrows Capital Ltd. was an investment firm engaged in
short-term opportunities trading, and is heavily invested in
cryptocurrency, funded through borrowings. As of April 2022, 3AC
was reported to have over $3 billion of assets under its
management.
3AC was incorporated as a business company under the laws of the
British Virgin Islands. Its sole shareholder owning all of its
"management shares" is Three Arrows Capital Pte. Ltd., which
previously operated as a regulated fund manager in Singapore until
2021, when it shifted its domicile to the BVI, as part of a global
corporate plan to relocate operations to Dubai.
3AC borrowed digital and fiat currency from multiple lenders to
fund its cryptocurrency investments. After cryptocurrency lost 99%
of its value, and then prices of other cryptocurrencies had rapid
declines, 3AC reportedly defaulted on its obligations.
On June 24, 2022, one of 3AC's many creditors -- DRB Panama Inc.
-- filed an application to appoint joint provisional liquidators
-- and thereafter, full Liquidators -- in the Eastern Caribbean
Supreme Court in the High Court of Justice (Commercial Division)
located in BVI. The application was assigned claim number
BVIHCOM2022/0117.
Subsequently, on June 27, 2022, 3AC filed its own application for
the appointment of joint liquidators before the BVI Commercial
Court.
On June 29, 2022, the Honorable Mr. Justice Jack of the BVI
Commercial Court appointed Russell Crumpler and Christopher Farmer
of Teneo (BVI) Limited as 3AC's joint liquidators.
On July 1, 2022, the 3AC liquidators filed a Chapter 15 bankruptcy
in the U.S. (Bankr. S.D.N.Y. Case No. 22-10920) to seek recognition
of the BVI proceedings. Judge Martin Glenn is the case judge.
Latham & Watkins LLP and Holland & Knight LLP are serving as the
liquidators' U.S. counsel.
The law firm of Ogier, led by Grant Carroll, is advising the
liquidators in the BVI proceedings.
THREE ARROWS: Genesis Files $1.2 Billion Claim
----------------------------------------------
Yahoo Finance reports that crypto broker Genesis Global Trading,
has filed a $1.2 billion claim against the now insolvent Three
Arrows Capital, according to a 1,157-page court filing uploaded by
bankruptcy trustee Teneo.
Genesis's parent company, Digital Currency Group, has assumed the
entire $1.2 billion claim, leaving Genesis with no outstanding
liabilities tied to Three Arrows Capital.
The filing indicates that Genesis Asia Pacific Pte. Ltd., a
subsidiary of Genesis Global, sought relief from Three Arrows
regarding assets of $1.14 billion, as well as pledged AVAX and NEAR
tokens worth a total of $91.3 million, on June 15.
A list of creditor claims on the document reveals that Genesis Asia
Pacific Pte. Ltd. made demands for breached Three Arrows Capital
loans totaling $2.36 billion.
The loans were partly collateralized with 17.4 million shares of
the Grayscale Bitcoin Trust (GBTC), 446,928 shares in Grayscale
Ethereum Trust (ETHE), 2.7 million AVAX tokens and 13.9 million
NEAR tokens all of which have been liquidated by Genesis.
Genesis issued a margin call to Three Arrows Capital via the
American Arbitration Association seeking collateral to make up the
shortfall. When Three Arrows failed to provide the required
collateral, Genesis sent a notice of default, stating that the
entire loan balance was due.
Last month, sources told CoinDesk that Genesis faced losses in the
"hundreds of millions" because of its exposure to Three Arrows
Capital, which is also known as 3AC.
About Three Arrows Capital
Three Arrows Capital Ltd. was an investment firm engaged in
short-term opportunities trading, and is heavily invested in
cryptocurrency, funded through borrowings. As of April 2022, 3AC
was reported to have over $3 billion of assets under its
management.
3AC was incorporated as a business company under the laws of the
British Virgin Islands. Its sole shareholder owning all of its
"management shares" is Three Arrows Capital Pte. Ltd., which
previously operated as a regulated fund manager in Singapore until
2021, when it shifted its domicile to the BVI, as part of a global
corporate plan to relocate operations to Dubai.
3AC borrowed digital and fiat currency from multiple lenders to
fund its cryptocurrency investments. After cryptocurrency lost 99%
of its value, and then prices of other cryptocurrencies had rapid
declines, 3AC reportedly defaulted on its obligations.
On June 24, 2022, one of 3AC's many creditors -- DRB Panama Inc.
-- filed an application to appoint joint provisional liquidators
-- and thereafter, full Liquidators -- in the Eastern Caribbean
Supreme Court in the High Court of Justice (Commercial Division)
located in BVI. The application was assigned claim number
BVIHCOM2022/0117.
Subsequently, on June 27, 2022, 3AC filed its own application for
the appointment of joint liquidators before the BVI Commercial
Court.
On June 29, 2022, the Honorable Mr. Justice Jack of the BVI
Commercial Court appointed Russell Crumpler and Christopher Farmer
of Teneo (BVI) Limited as 3AC's joint liquidators.
On July 1, 2022, the 3AC liquidators filed a Chapter 15 bankruptcy
in the U.S. (Bankr. S.D.N.Y. Case No. 22-10920) to seek recognition
of the BVI proceedings. Judge Martin Glenn is the case judge.
Latham & Watkins LLP and Holland & Knight LLP are serving as the
liquidators' U.S. counsel.
The law firm of Ogier, led by Grant Carroll, is advising the
liquidators in the BVI proceedings.
ZIPMEX PTE: Seeks $50 Million After Freezing Crypto Withdrawals
---------------------------------------------------------------
Livemint reports that crypto exchange Zipmex is seeking to raise
about $50 million to repair its balance sheet, the company
confirmed the targeted fundraising amount in an emailed response to
questions from Bloomberg.
Livemint relates that the Asia-focused cryptocurrency exchange that
froze some withdrawals last week said that it is in discussions to
sell all or part of itself after lending money to troubled crypto
firms - Babel Finance and Celsius Network Ltd.
Celsius and Babel Finance are among several cryptocurrency players
that have fallen into difficulties in recent months, the report
notes.
Taking to Twitter on July 24, Zipmex stated that one of "various
interested parties" it's held talks with has "offered terms" in a
memorandum of understanding, without identifying the entity.
According to Livemint, the fundraising target roughly represents
Zipmex's combined exposures to Babel and Celsius, which stand at
$48 million and $5 million, respectively.
Zipmex was derailed by the daisy chain of defaults that's rippled
through the highly interconnected market for crypto lending and
borrowing following a $2 trillion rout in digital assets.
Celsius filed for bankruptcy earlier in July and Babel has tapped
restructuring advisers, Livemint notes.
Zipmex Pte Ltd -- https://zipmex.com/ -- is a digital asset
exchange that provides digital access to wealth generating assets
for the mass market. Zipmex offers services for users in Thailand,
Indonesia, Singapore and Australia.
ZIPMEX PTE: Thailand Probes Potential Losses for Users
------------------------------------------------------
Livemint reports that Thailand's Securities and Exchange Commission
said July 25 it was working with law enforcement to look into
potential losses among the public after Zipmex temporarily
suspended withdrawals last week.
According to Livemint, the SEC said in a statement it was asking
impacted users of Zipmex to submit information via an online forum
on how they had been affected by the problems at the platform.
Livemint relates that the announcement came as crypto trading in
Thailand has slowed and after Thai lender SCB X Pcl said it was
extending the due diligence period for its $537 million acquisition
of Thai crypto exchange, Butkub.
Zipmex operates in Thailand, Singapore, Indonesia and Australia. It
has a license for digital asset trading from the Securities and
Exchange Commission of Thailand, according to its website.
In Singapore, the exchange holds an exempted payment service
provider permit, rather than a full license under the central
bank's new regime for cryptoasset firms, the report says.
Among its products is ZipUp+, an account that pays yields as high
as 10% on deposits of tokens like Bitcoin, Ether and Litecoin.
Withdrawals from that product are still frozen, the report notes.
"We have been engaged with the SEC and other government agencies to
provide them with all required documents," a Zipmex spokesperson
reportedly said.
Zipmex holds a digital asset exchange and a digital asset broker
license, the SEC website showed. At the weekend, the company said
in a Facebook post it was exploring a deal with an "interested
party," Livemint relays.
Zipmex is the latest to encounter financial difficulties following
a sharp sell off in markets that started in May with the collapse
of two paired tokens, Luna and TerraUSD, the report notes.
Zipmex Pte Ltd -- https://zipmex.com/ -- is a digital asset
exchange that provides digital access to wealth generating assets
for the mass market. Zipmex offers services for users in Thailand,
Indonesia, Singapore and Australia.
=====================
S O U T H K O R E A
=====================
DAEWOO SHIPBUILDING: Creditor Warns of Bankruptcy Over Strike
-------------------------------------------------------------
The Korea Herald reports that Daewoo Shipbuilding & Marine
Engineering may face a court-ordered rehabilitation process unless
action is taken on a monthlong strike there, the company's main
creditor Korea Development Bank said July 22.
"It would be more difficult for DSME to repay its debts as the
strike drags on . . . we're not going to help the builder unless
it gets back to work," the report quotes an executive at the
state-run bank as saying. The country's third-largest shipbuilder
would have no choice but to ask the court for help if the strike
results in a poorer liquidity, he suggested.
The Korea Herald relates that the strike, which started last month
as subcontractors occupied the shipyard's main dock demanding a 30%
pay raise, is projected to cause losses amounting to KRW816.5
billion ($622.1 million) by July and 1.3 trillion won by August,
according to the bank.
But neither the company nor striking workers seem ready to
compromise anytime soon, the report notes. Mediation efforts by the
labor minister as well as President Yoon Suk-yeol, who himself
called the sit-in "illegal," have instead rallied the workers and
proved ineffective.
According to the report, analysts said the builder would find it
hard to stay afloat without extra loans from KDB -- the main
creditor that had injected KRW2.6 trillion into the company since
2016, contributing to more than half the KRW4.2 trillion the
creditors had chipped in to save the firm.
KDB had backed merging DSME and its crosstown rival Hyundai Heavy
Industries, a tie-up that would have resulted in the world's
largest shipbuilder, but in January European Union antitrust
regulators blocked the proposal, saying the two Korean builders'
market dominance could lead to reduced competition, the report
states.
The Korea Herald adds that DSME had already undergone rounds of
restructuring so it has few assets to sell or enough collateral to
pull loans, analysts said, noting the court could take steps to
liquidate the firm altogether if it files for receivership again.
Headquartered in Seoul, South Korea, Daewoo Shipbuilding & Marine
Engineering Co. -- http://www.dsme.co.kr/-- is engaged in building
ships and offshore structures. Its product portfolio includes
commercial ships, such as liquefied natural gas (LNG) carriers, oil
tankers, containerships, liquefied petroleum gas (LPG) carriers,
pure car carriers; offshore structures, such as FPSO vessels,
drilling rigs, drillships and fixed platforms, and naval vessels,
including submarines, destroyers, rescue ships and patrol boats.
=================
S R I L A N K A
=================
SRI LANKA: Asks China for Help with Trade, Investment and Tourism
-----------------------------------------------------------------
Reuters reports that Sri Lanka has asked China to help with trade,
investment and tourism to help it grow sustainably, Colombo's envoy
to Beijing said on July 25 as it negotiates for an emergency $4
billion package to help it emerge from an economic meltdown.
According to Reuters, Ambassador Palitha Kohona's emphasis on China
as a key to Sri Lanka's economic recovery reflects Beijing's status
as one of Sri Lanka's two largest foreign creditors, along with
Japan. China also holds some 10% of Sri Lanka's external debt.
In an interview with Reuters at Sri Lanka's Beijing embassy, Kohona
said Colombo wants China to ask its companies to buy more Sri
Lankan black tea, sapphire, spices and garments and to make Chinese
import rules more transparent and easier to navigate.
He said Beijing could also help by pouring further investment into
vast China-backed port projects in Colombo and Hambantota. Major
Chinese investment plans had not materialised because of the
COVID-19 pandemic, Kohona said, Reuters relays.
In addition, Sri Lanka would like to see more Chinese tourists,
whose numbers fell from 265,000 in 2018 to almost zero after the
2019 suicide attacks and the pandemic.
Reuters relates that Kohona said new Sri Lankan President Ranil
Wickremesinghe has plans to visit China to discuss cooperation on
matters including trade, investment and tourism.
Wickremesinghe is no stranger to China. A photo of him shaking
hands with Chinese President Xi Jinping when he visited Beijing in
2016 as prime minister hangs in the hallway of the embassy where
Reuters interviewed Kohona.
Kohona said he expects no fundamental change in the new
government's policy towards China.
He said he understands China is finding it hard to act quickly to
help Sri Lanka now because as a major global creditor it is also
financially exposed to many other countries in financial
difficulty, Reuters relays. "Maybe if it was only Sri Lanka, then
the decision-making would've been much easier."
For several months, Sri Lanka had been in talks in China for a $4
billion aid package, consisting of a loan of $1 billion to repay a
roughly equivalent amount of Chinese debt due this year, the report
says.
It is also asking for a $1.5 billion credit line to pay for Chinese
imports. Kohona said these imports are mainly inputs needed by his
country's lucrative garment industry such as buttons and zippers.
Sri Lanka also hopes to persuade China to activate a $1.5 billion
bilateral currency swap.
Reuters adds that Kohona said discussions on financial aid with
China are still underway but no date for the next meeting has been
set.
The Chinese foreign ministry said this month that Beijing is
willing to work with other countries and international financial
institutions to "play a positive role" to help Sri Lanka.
Beyond financial aid, Sri Lanka also hopes China can help it buy
fuel, fertilizer and other urgently needed supplies.
China pledged CNY500 million ($74.09 million) of emergency support
for Sri Lanka in April and May. "We need a lot more," Kohona said.
About Sri Lanka
Sri Lanka, formerly known as Ceylon and officially the Democratic
Socialist Republic of Sri Lanka, is an island country in South
Asia. It lies in the Indian Ocean, southwest of the Bay of Bengal,
and southeast of the Arabian Sea; it is separated from the Indian
subcontinent by the Gulf of Mannar and the Palk Strait. Sri Lanka
shares a maritime border with India and the Maldives. Sri
Jayawardenepura Kotte is its legislative capital, and Colombo is
its largest city and financial centre.
Sri Lanka has been mired in turmoil amid surging inflation, a
plummeting currency and an economic crisis that has left the
country short of the hard currency it needs to import food and
fuel, according to Bloomberg News. Public anger has boiled over
into violent protests and led the government to announce in April
2022 it would halt payments on its $12.6 billion pile of foreign
debt to preserve cash for essential goods.
That marks the nation's first sovereign debt default since it
gained independence from Britain in 1948, Bloomberg said. Its bonds
are among the worst performers in the world this year and trade
deep in distressed territory, with holders bracing for losses
approaching 60 cents on the dollar.
Sri Lanka's crisis sparked months of mass protests and eventually
forced then president Gotabaya Rajapaksa to flee the country.
On July 20, 2022, Ranil Wickremesinghe was elected as Sri Lanka's
new head of state backed by a majority of lawmakers from ousted
leader Gotabaya Rajapaksa's party.
SRI LANKA: Taiwan's Financial Exposure was NT$3BB, FSC Says
-----------------------------------------------------------
Taipei Times reports that Taiwan's financial exposure to Sri Lanka,
which declared bankruptcy earlier this month, was NT$3 billion
(US$100.28 million) as of the end of last month, with most of it in
the banking and the asset management sectors, the Financial
Supervisory Commission (FSC) relayed in a meeting on July 21.
Ten local banks had loans totaling NT$350 million - NT$290 million
to Sri Lankan companies and NT$60 million to the nation's financial
institutions - as of the end of last month, down 44.6 percent from
a year earlier, Taipei Times discloses citing a commission tally.
Local banks had set aside reserves totaling NT$4 million to be used
to write off sour debts after then-Sri Lankan prime minister Ranil
Wickremesinghe on July 6 said that Sri Lanka was bankrupt as it
faced its worst financial crisis in decades, the commission said,
Taipei Times relays.
Local banks' headquarters in Taiwan should have solid risk controls
over the lending operations of their overseas units, it said.
Offshore funds had NT$2.53 billion of exposure to Sri Lanka, down
49.6 percent from a year earlier, while the exposure of domestic
funds to the country was NT$110 million, down 90 percent from a
year earlier, the commission, as cited by Taipei Times, said.
The combined exposure of offshore and domestic funds, NT$2.64
billion, was down 56.7 percent year-on-year, it said.
Taipei Times relates that the annual decrease could be attributed
to reduced interest among local asset management companies in the
developing market, as well as a decline in the monetary valuation
of Sri Lankan securities, it said.
Local life insurers and securities companies do not have exposure
to the country, it added.
Taipei Times adds that the commission said that it has reminded
financial companies to monitor their investments in Sri Lanka
tightly and to bolster risk controls.
Overall, Taiwan's exposure to Sri Lanka was NT$3 billion at the end
of last month, down 55 percent from a year earlier, the commission
said.
Sri Lanka in May failed to make an interest payment on its foreign
debt for the first time in its history, a failure that can damage
national credit ratings.
Defaults on high-yields bonds in Asia totaled about US$32 billion
for the first five months of this year, mainly because of defaults
in China and Sri Lanka, UBS Group AG said in a report, adds Taipei
Times.
About Sri Lanka
Sri Lanka, formerly known as Ceylon and officially the Democratic
Socialist Republic of Sri Lanka, is an island country in South
Asia. It lies in the Indian Ocean, southwest of the Bay of Bengal,
and southeast of the Arabian Sea; it is separated from the Indian
subcontinent by the Gulf of Mannar and the Palk Strait. Sri Lanka
shares a maritime border with India and the Maldives. Sri
Jayawardenepura Kotte is its legislative capital, and Colombo is
its largest city and financial centre.
Sri Lanka has been mired in turmoil amid surging inflation, a
plummeting currency and an economic crisis that has left the
country short of the hard currency it needs to import food and
fuel, according to Bloomberg News. Public anger has boiled over
into violent protests and led the government to announce in April
2022 it would halt payments on its $12.6 billion pile of foreign
debt to preserve cash for essential goods.
That marks the nation's first sovereign debt default since it
gained independence from Britain in 1948, Bloomberg said. Its bonds
are among the worst performers in the world this year and trade
deep in distressed territory, with holders bracing for losses
approaching 60 cents on the dollar.
Sri Lanka's crisis sparked months of mass protests and eventually
forced then president Gotabaya Rajapaksa to flee the country.
On July 20, 2022, Ranil Wickremesinghe was elected as Sri Lanka's
new head of state backed by a majority of lawmakers from ousted
leader Gotabaya Rajapaksa's party.
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S U B S C R I P T I O N I N F O R M A T I O N
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
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Copyright 2022. All rights reserved. ISSN: 1520-9482.
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