/raid1/www/Hosts/bankrupt/TCRAP_Public/221014.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
Friday, October 14, 2022, Vol. 25, No. 200
Headlines
A U S T R A L I A
AUSSIE STRENGTH: Second Creditors' Meeting Set for Oct. 20
BECKON CAPITAL: Second Creditors' Meeting Set for Oct. 21
FIRSTMAC MORTGAGE 2022-4: S&P Assigns BB(sf) Rating to Cl. E Notes
GREEN CIVIL: First Creditors' Meeting Set for Oct. 20
LEMA AUSTRALIA: Second Creditors' Meeting Set for Oct. 21
MESOBLAST LIMITED: Registers 10MM Ordinary Shares Under Option Plan
OUTBACK TOUR: First Creditors' Meeting Set for Oct. 21
SUREPACT HOLDINGS: Second Creditors' Meeting Set for Oct. 20
C A M B O D I A
NAGACORP LTD: Moody's Cuts CFR & Sr. Unsec. USD Bond Rating to B2
I N D I A
A.ES ENGINEERS PRIVATE: Insolvency Resolution Process Case Summary
AKUA BEHAVIORAL: Voluntary Liquidation Process Case Summary
ASHOKA DEVELOPERS: CRISIL Assigns C Rating to INR75cr LT Loan
BHAROSA CHARITABLE: CRISIL Moves B Rating to Not Cooperating
C&C CONSTRUCTIONS: Liquidation Process Case Summary
DASHRATH PRASAD: CRISIL Assigns B+ Rating to INR150cr Term Loan
DURGAMBA CONSTRUCTIONS: CRISIL Moves B+ Rating to Not Cooperating
ENSEMBLE RESOLUTION: Voluntary Liquidation Process Case Summary
FIRST FLIGHT: Insolvency Resolution Process Case Summary
FUJIYAMA POWER: CRISIL Withdraws B Rating on INR8.6cr Cash Loan
GOLDILOCKS INDIA: Voluntary Liquidation Process Case Summary
HINDUJA INSURANCE: Voluntary Liquidation Process Case Summary
JCR CINEMA: CRISIL Withdraws D Rating on INR20cr Term Loan
K N K CHEMICALS: CRISIL Lowers Rating on INR15cr Cash Loan to B
KOTAK URJA: Liquidation Process Case Summary
L&T SPECIAL: CRISIL Lowers Rating on INR400cr LT Loan to D
M G F MOTORS: CRISIL Withdraws D Rating on INR14cr Cash Loan
MATIZ METALS: Insolvency Resolution Process Case Summary
NARAYAN INDUSTRIES: CRISIL Moves B+ Rating from Not Cooperating
NOVASYS GREENERGY: CRISIL Reaffirms B+ Rating on INR13cr Loan
PRADHAMA MULTI: CRISIL Keeps D Debt Ratings in Not Cooperating
PRASAR SHIKSHAN: CRISIL Moves B+ Ratings to Not Cooperating
R R INFRASTRUCTURE: CRISIL Hikes Rating on INR6cr Loan to B+
R. J. CONSTRUCTION: CRISIL Moves B+ Ratings to Not Cooperating
RAJESH CONSTRUCTION: CRISIL Moves B+ Ratings to Not Cooperating
RAJESH LANDMARK: Bankruptcy Court Admits Insolvency Bid
RAMKRISHNA ELECTRICALS: Insolvency Resolution Process Case Summary
RAVI CRANES: Insolvency Resolution Process Case Summary
RAYS POWER: CRISIL Withdraws B Rating on INR40cr Cash Loan
RITU AUTOMOBILES: Insolvency Resolution Process Case Summary
S. S. SEA: CRISIL Assigns B+ Rating to INR5.9cr LT Loan
SAMARTHA LEISURES: CRISIL Reaffirms D Rating on INR3.5cr Loan
SIMOLA TILES: CRISIL Moves D Debt Ratings to Not Cooperating
SKS TEXTILES LIMITED: Insolvency Resolution Process Case Summary
SREI EQUIPMENT: CRISIL Keeps B+(SO) Rating in Not Cooperating
STARTSMART LABS: Voluntary Liquidation Process Case Summary
SUBHLABH STEELS: Liquidation Process Case Summary
SUN GREEN: Voluntary Liquidation Process Case Summary
TRANSMISSION CORP: CRISIL Hikes Rating on INR2.0cr Bond to C
VENKATA KRISHNA: CRISIL Assigns B+ Rating to INR3cr Cash Loan
VIJAYGROUP HOUSING: Insolvency Resolution Process Case Summary
VINN HEALTHCARE: CRISIL Moves B+ Debt Ratings to Not Cooperating
YASH AGRO: CRISIL Lowers Ratings on INR5cr Cash Loan to D
I N D O N E S I A
KAYU RAYA: Furniture Retailer Declares Bankruptcy
M A L A Y S I A
TH HEAVY: Seeking Supplementary Agreement to Complete OPVs
N E W Z E A L A N D
BX TRADING: Creditors' Proofs of Debt Due on Nov. 9
CASHMORE HOLDINGS: Creditors' Proofs of Debt Due on Nov. 11
HILLSBOROUGH BUILDING: Creditors' Proofs of Debt Due on Nov. 17
KIWI WINDOW: Khov Jones Appointed as Receivers
SLD AGRICULTURE: Laing Insolvency Appointed as Liquidators
S I N G A P O R E
CHOICEHOMES INVESTMENTS: Members' Final Meeting Set for Nov. 14
SMALLWORLD DEVELOPMENTS: Members' Final Meeting Set for Nov. 14
ZETTA JET: Former Managing Director Charged With Embezzlement
X X X X X X X X
[*] China Property, Russia Drive Emerging Market Q3 Corp. Defaults
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A U S T R A L I A
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AUSSIE STRENGTH: Second Creditors' Meeting Set for Oct. 20
----------------------------------------------------------
A second meeting of creditors in the proceedings of Aussie Strength
Pty Ltd and Aussie Strength Global Pty Ltd has been set for Oct.
20, 2022, at 11:00 a.m. at the offices of at the offices of BRI
Ferrier, Level 30, Australia Square, 264 George Street, in Sydney,
NSW, or via virtual meeting technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Oct. 19, 2022, at 4:00 p.m.
Jonathon Keenan & Peter Paul Krejci of BRI Ferrier were appointed
as administrators of the company on Sept. 13, 2022.
BECKON CAPITAL: Second Creditors' Meeting Set for Oct. 21
---------------------------------------------------------
A second meeting of creditors in the proceedings of Beckon Capital
Pty Ltd has been set for Oct. 21, 2022, at 10:00 a.m. via virtual
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 Oct. 20, 2022, at 4:00 p.m.
Bradd William Morelli and Trent Andrew Devine of Jirsch Sutherland
were appointed as administrators of the company on Sept. 14, 2022.
FIRSTMAC MORTGAGE 2022-4: S&P Assigns BB(sf) Rating to Cl. E Notes
------------------------------------------------------------------
S&P Global Ratings assigned its ratings to seven of the eight
classes of prime residential mortgage-backed securities (RMBS)
issued by Firstmac Fiduciary Services Pty Ltd. as trustee for
Firstmac Mortgage Funding Trust No.4 Series 2022-4.
The ratings assigned to the prime floating-rate RMBS reflect the
following factors.
The credit risk of the underlying collateral portfolio and the
credit support provided to each class of notes are commensurate
with the ratings assigned. Credit support for the rated notes is
provided by subordination, excess spread, and lenders' mortgage
insurance (LMI). The credit support provided to the rated notes is
sufficient to cover the assumed losses at the applicable rating
stress. Our assessment of credit risk considers Firstmac Ltd.'s
(Firstmac's) underwriting standards and approval processes, which
are consistent with industry-wide practices, and the strong
servicing quality of Firstmac, and the support provided by the LMI
policies on 50.7% of the loan portfolio.
The rated notes can meet timely payment of interest--excluding the
residual interest due on the class B, class C, class D and class E
notes--and ultimate payment of principal under the rating stresses.
Key rating factors are the level of subordination provided, the LMI
cover, the liquidity reserve, the principal draw function, the
interest-rate swap, and the provision of an extraordinary expense
reserve. S&P's analysis is on the basis that the notes are fully
redeemed by their legal final maturity date, and it does not assume
the notes are called at or beyond the call date.
S&P said, "Our ratings also take into account the counterparty
exposure to Westpac Banking Corp. as bank account provider and
Commonwealth Bank of Australia as interest-rate swap provider. The
transaction documents for the facilities include downgrade language
consistent with our counterparty criteria.
"We also have factored into our ratings the legal structure of the
trust, which is established as a special-purpose entity and meets
our criteria for insolvency remoteness."
Ratings Assigned
Firstmac Mortgage Funding Trust No.4 Series 2022-4
Class A-1, A$1,500.00 million: AAA (sf)
Class A-2, A$123.50 million: AAA (sf)
Class A-3, A$52.90 million: AAA (sf)
Class B, A$46.10 million: AA (sf)
Class C, A$22.00 million: A (sf)
Class D, A$10.10 million: BBB (sf)
Class E, A$4.80 million: BB (sf)
Class F, A$5.30 million: Not rated
GREEN CIVIL: First Creditors' Meeting Set for Oct. 20
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Green Civil
Con Pty Ltd will be held on Oct. 20, 2022, at 11:00 a.m. via
teleconference facilities.
Sule Arnautovic and John Vouris of Hall Chadwick were appointed as
administrators of the company on Oct. 11, 2022.
LEMA AUSTRALIA: Second Creditors' Meeting Set for Oct. 21
---------------------------------------------------------
A second meeting of creditors in the proceedings of Lema Australia
Pty Ltd, trading as The Lema Bar, has been set for Oct. 21, 2022,
at 10:00 a.m. at the offices of Hamilton Murphy Advisory, at Suite
4, Level 3, 16 Victoria Avenue, in Perth, WA.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Oct. 20, 2022, at 4:00 p.m.
Stephen Dixon and Geoffrey Trent Hancock of Hamilton Murphy
Advisory were appointed as administrators of the company on June
16, 2022.
MESOBLAST LIMITED: Registers 10MM Ordinary Shares Under Option Plan
-------------------------------------------------------------------
Mesoblast Limited filed a Form S-8 registration statement with the
Securities and Exchange Commission to register an additional
10,000,000 ordinary shares of the Company that may be offered and
sold under the Employee Share Option Plan. This Registration
Statement relates solely to the registration of additional
securities of the same class as other securities for which one or
more other registration statements filed on this form relating to
the same employee share option plan are effective.
A full-text copy of the prospectus is available for free at:
https://www.sec.gov/Archives/edgar/data/1345099/000121390022060383/ea165574-s8_mesoblast.htm
About Mesoblast
Headquartered in Melbourne, Australia, Mesoblast Limited --
www.mesoblast.com -- is a developer of allogeneic (off-the-shelf)
cellular medicines for the treatment of severe and life-threatening
inflammatory conditions. The Company has leveraged its proprietary
mesenchymal lineage cell therapy technology platform to establish a
broad portfolio of late-stage product candidates which respond to
severe inflammation by releasing anti-inflammatory factors that
counter and modulate multiple effector arms of the immune system,
resulting in significant reduction of the damaging inflammatory
process. Mesoblast has locations in Australia, the United States
and Singapore and is listed on the Australian Securities Exchange
(MSB) and on the Nasdaq (MESO).
Mesoblast reported a loss attributable to owners of US$91.35
million on US$10.21 million of revenue for the year ended June 30,
2022, compared to a loss attributable to owners of US$98.81 million
on US$7.45 million of revenue for the year ended June 30, 2021. As
of June 30, 2022, the Company had US$662.14 million in total
assets, US$165.10 million in total liabilities, and US$497.04
million in total equity.
Melbourne, Australia-based PricewaterhouseCoopers, the Company's
auditor since 2008, issued a "going concern" qualification in its
report dated Aug. 31, 2022, citing that the Company has net cash
outflows from operating activities and will need to obtain
financing from one or more sources that raise substantial doubt
about its ability to continue as a going concern.
OUTBACK TOUR: First Creditors' Meeting Set for Oct. 21
------------------------------------------------------
A first meeting of the creditors in the proceedings of:
* Outback Tour Services Pty Ltd;
* Discovery Adventure Group Pty Ltd;
* Adventium Technology Group Pty Ltd;
* Adventium Technology Pty Ltd;
* Adventure Tours Australia Group Pty Ltd;
* Discovery Adventure Group Holdings Pty Ltd;
* Honeylamb Pty Ltd; and
* Imperium Tourism Holdings Pty Ltd
will be held on Oct. 21, 2022, at 11:00 a.m. via electronic
facilities.
Andrew Fielding and Shaun McKinnon of BDO were appointed as
administrators of the company on Oct. 11, 2022.
SUREPACT HOLDINGS: Second Creditors' Meeting Set for Oct. 20
------------------------------------------------------------
A second meeting of creditors in the proceedings of Surepact
Holdings Pty Ltd and Surepact Pty Ltd has been set for Oct. 20,
2022, at 10:30 a.m. at the offices of Cor Cordis, Level 19,
Waterfront Place, 1 Eagle Street, in Brisbane, Queensland.
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 Oct. 19, 2022, at 5:00 p.m.
Darryl Kirk of Cor Cordis was appointed as administrator of the
company on Aug. 19, 2022.
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C A M B O D I A
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NAGACORP LTD: Moody's Cuts CFR & Sr. Unsec. USD Bond Rating to B2
-----------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating of NagaCorp Ltd. to B2 from B1.
At the same time, Moody's has downgraded the senior unsecured
rating of the company's US dollar bond to B2 from B1. The bond is
unconditionally and irrevocably guaranteed by the major operating
subsidiaries of NagaCorp.
The outlook remains negative.
"The downgrade reflects NagaCorp's slower-than-expected operational
recovery such that the company will likely require external
financing to repay its outstanding $545 million bond maturing in
July 2024. The refinancing risk is exacerbated by tight funding
conditions in the current economic environment and limited sources
of liquidity for the company," says Yu Sheng Tay, a Moody's
Analyst.
"The negative outlook reflects NagaCorp's heightened refinancing
risk. At the same time, it reflects ongoing uncertainties around
the pace of recovery in the company's operating performance," adds
Tay.
Governance consideration was a key driver of the rating action.
Moody's views that the company's concentrated debt structure and
reliance on external funding have resulted in heightened
refinancing risks. Consequently, Moody's has changed the governance
issuer profile score to G-4 from G-3 and the ESG credit impact
score to CIS-4 from CIS-3.
RATINGS RATIONALE
Moody's expects NagaCorp to generate EBITDA of around $252 million
and $352 million in 2022 and 2023, respectively, compared with $16
million in 2021. The improvement is supported by the easing of
pandemic-related restrictions in Cambodia, which has resulted in a
gradual recovery in the country's tourism sector.
Nonetheless, the company's earnings in 2022 and 2023 will remain
well below that of 2019. The slower recovery is attributed to
increasing regulatory scrutiny and clampdown on gaming promoters,
which drove a significant portion of the revenues for NagaCorp
historically.
NagaCorp is also exposed to rising refinancing risks because of a
debt maturity wall in July 2024. The company has a $545 million
bond that forms its entire debt structure, excluding lease
liabilities.
Moody's believes the company's ability to raise external financing
is challenged given the tight funding conditions in the current
economic environment. At the same time, NagaCorp has limited
sources of liquidity given its lack of bank facilities and
divestible non-core assets.
While NagaCorp can reduce both its development capital expenditure
for Naga 3 and cash dividends to preserve liquidity, the company
has continued to incur such cash outflows since 2020, despite
operational disruptions because of the pandemic.
As of June 30, 2022, NagaCorp had cash and cash equivalents of $213
million. Moody's expects the company to generate sufficient
operating cash flow to meet its cash needs through June 2024.
However, the company will likely require external financing to
repay its US-dollar bond on July 6, 2024.
NagaCorp's B2 ratings continue to reflect the dominant position of
its integrated casino and hotel complex, NagaWorld, in Phnom Penh,
Cambodia (B2 stable), underpinned by an exclusive right lasting
until 2045 to operate casinos in and around the capital city of
Phnom Penh. However, the ratings are constrained by its single-site
operations as well as exposure to political risk and the evolving
regulatory framework in Cambodia.
NagaCorp's ESG credit impact score is highly negative (CIS-4). This
largely reflects its heightened refinancing risks and concentrated
ownership by the founder. At the same time, the company is exposed
to physical climate risk arising from its asset concentration in
Cambodia and very high social risks that are inherent to the gaming
sector.
NagaCorp has a highly negative credit exposure to governance risk
(G-4) because its concentrated debt structure and reliance on
external funding have resulted in heightened refinancing risks. At
the same time, it also reflects the company's concentrated
ownership by the founder, Dr. Chen Lip Keong. However, the risk is
mitigated by the oversight exercised through the board consisting
of majority independent directors and the demonstration of support
by the controlling shareholder, who has funded the company's
expansion by injecting equity.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Given the negative outlook, an upgrade is unlikely over the next
12-18 months. However, the outlook could return to stable if
NagaCorp addresses its refinancing risk while demonstrating an
operational recovery.
Moody's could downgrade NagaCorp's ratings if the operating
environment deteriorates, resulting in protracted weakness in
operating cash flow; the company fails to maintain its 100%
ownership of Ariston Sdn. Bhd, which holds its Cambodian casino
license, and 100% ownership of NagaWorld; or the company is unable
to address its refinancing risk.
Credit metrics indicative of a downgrade include adjusted
debt/EBITDA exceeding 3.0x and adjusted retained cash flow/debt
falling below 25% over the next 12-18 months.
The principal methodology used in these ratings was Gaming
published in June 2021.
NagaCorp Ltd. was incorporated in the Cayman Islands in 2003 and
listed on the Hong Kong Stock Exchange in 2006. The company owns
and manages NagaWorld, the largest integrated casino and hotel
complex in Phnom Penh, Cambodia. NagaCorp was founded by Tan Sri
Dr. Chen Lip Keong, the company's chief executive officer and
largest shareholder with an approximate 69% stake as of July 22,
2022.
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A.ES ENGINEERS PRIVATE: Insolvency Resolution Process Case Summary
------------------------------------------------------------------
Debtor: A.ES Engineers Private Limited
House No. 358, Block-CB
Naraina Village New Delhi
South West Delhi
DL 110028 IN
Insolvency Commencement Date: October 6, 2022
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: April 2, 2023
Insolvency professional: Abhishek Anand
Interim Resolution
Professional: Abhishek Anand
E-103, Lower Ground Floor
G K Enclave-1
New Delhi 110048
E-mail: irpepoch@gmail.com
AESCIRP@gmail.com
Last date for
submission of claims: October 18, 2022
AKUA BEHAVIORAL: Voluntary Liquidation Process Case Summary
-----------------------------------------------------------
Debtor: Akua Behavioral Health Private Limited
127 Sector-29 Noida
Gautam Buddha Nagar
Uttar Pradesh 201303
Liquidation Commencement Date: October 7, 2022
Court: National Company Law Tribunal, New Delhi Bench
Insolvency professional: Akhil Chadha
Interim Resolution
Professional: Akhil Chadha
Ahkil Chadha & Associates
89, Pushpanjali Apartments
Plot No. 10, Sector 4
Dwarka, New Delhi 110078
E-mail: chadhakhil@gmail.com
Last date for
submission of claims: November 6, 2022
ASHOKA DEVELOPERS: CRISIL Assigns C Rating to INR75cr LT Loan
-------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL C' to the long term bank
facilities of Ashoka Developers & Builders Limited (Ashoka). The
rating is driven by delay in debt servicing.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Lease Rental
Discounting Loan 75 CRISIL C (Assigned)
Proposed Long Term
Bank Loan Facility 5 CRISIL C (Assigned)
The rating reflects exposure to risks associated with ongoing
projects and vulnerability to cyclicality inherent in the real
estate industry. These weaknesses are partially offset by
established regional presence in real estate development, supported
by promoters' extensive industry experience.
Key Rating Drivers & Detailed Description
Weaknesses:
* Exposure to risks associated with ongoing projects: The group
has one ongoing where construction is around 80 percent completed.
However, overall customer advances were modest. Timely inflow of
advances remain critical. Operating performance will remain
susceptible to flow of advances from customers.
* Susceptibility to timely execution of projects, and flow of
customer advances: The ongoing project is less than 20%
construction complete with similar booking. However, the group has
large upcoming project whose execution in dependent on customer
advances and timely contraction of debt. Thus, any delay in timely
funding tie-up or delays in execution due to regulatory changes or
adverse climatic conditions, could adversely impact the group's
business risk profile.
* Vulnerability to cyclicality inherent in the real estate
industry: The real estate sector in India is cyclical and affected
by volatile prices, opaque transactions, and a highly fragmented
market structure. Hence, business risk profile will remain
susceptible to risks arising from any industry slowdown.
Strength:
* Established regional presence in real estate development,
supported by promoters' extensive industry experience: Ashoka's
business risk profile benefits from the extensive industry
experience of its promoters in the real estate sector. The company
is promoted by Mr. N Jaiveer Reddy and his family, who have an
established track record of over two decades in the residential and
commercial real estate segment in Hyderabad. Ashoka has executed
more than 20 residential and commercial real estate projects in the
city. The promoters' extensive industry experience along with its
established relationships with various stakeholders has enabled
successful execution and sales of projects in Hyderabad. CRISIL
Ratings believes that Ashoka will continue to benefit from the
extensive industry experience of its promoters in the real estate
sector.
Liquidity: Poor
Liquidity profile remains poor as indicated by delays in debt
servicing
Rating Sensitivity factors
Upward factors
* Timeliness in debt servicing for more than 90 days
* Timely completion of the project without any cost overruns
Downward factors
* Large, debt-funded capital expenditure
* Delay in debt servicing.
* Degrowth in revenue leading to cash accruals less than 10 lakhs.
Incorporated in 1989, and promoted by Mr. Jaiveer Reddy and his
family, Ashoka develops residential and commercial property in
Hyderabad. Mr. Reddy manages the company's day-to-day operations.
BHAROSA CHARITABLE: CRISIL Moves B Rating to Not Cooperating
------------------------------------------------------------
CRISIL Ratings has migrated the rating on the long-term bank
facilities of Bharosa Charitable Trust (Bharosa) to 'CRISIL
B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 5 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with Bharosa for
getting information. CRISIL Ratings requested cooperation and
information from the issuer through letters dated July 30, 2022 and
August 30, 2022, apart from telephonic communication. However, the
issuer has continued to be non-cooperative.
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 firm. Such
non-co-operations by a rated entity may be a result of
deterioration in its credit risk profile. The rating with 'issuer
not cooperating' suffix lacks 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 Bharosa, which restricts the
ability of CRISIL Ratings to take a forward-looking view on the
entity's credit quality. CRISIL Ratings believes that the rating
action on Bharosa is consistent with 'Assessing Information
Adequacy Risk'. Based on the last-available information, the rating
on the long-term bank facilities of Bharosa has been migrated to
'CRISIL B/Stable Issuer Not Cooperating'.
BCT was established in June 2015 as Non-Profit Organisation (NGO),
started its microfinance operations in October 2015. BCT is
operating with 3 branches namely, Habra, Barasat and Madhyamgram in
North 24 Parganas district of West Bengal. Trust has completed 4
years with loan portfolio of INR1.32 crore, trust in entirely
funded by board of members and friends. Trust forms a group with
minimum 8 members.
C&C CONSTRUCTIONS: Liquidation Process Case Summary
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Debtor: C&C Constructions Ltd.
Registered office:
74, Hemkunt Colony
New Delhi 110048
Corporate office:
Plot No. 70, Sector 32
Gurugram 122001
Liquidation Commencement Date: October 7, 2022
Court: National Company Law Tribunal, Principal Bench, Delhi
Date of closure of
insolvency resolution process: October 6, 2022
Insolvency professional: Navneet Kumar Gupta
Interim Resolution
Professional: Navneet Kumar Gupta
Unit 2, Block D1
Golf Link, Sector 23B
Dwarka, New Delhi 110077
E-mail: navneet@minervaresolutions.com
- and -
Plot No. 70, Sector 32
Gurugram 122001
E-mail: liquidationofcnc@
minervaresolutions.com
Last date for
submission of claims: November 6, 2022
DASHRATH PRASAD: CRISIL Assigns B+ Rating to INR150cr Term Loan
---------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating on the
long term bank facilities of Dashrath Prasad Industries Private
Limited (DPIPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Term Loan 150 CRISIL B+/Stable (Assigned)
Proposed Working
Capital Facility 20 CRISIL B+/Stable (Assigned)
The rating reflects exposure of the entity to project-related
risks, its expected leveraged capital structure and susceptibility
to fluctuations in raw material prices. These weaknesses are
partially offset by the extensive experience of the promoters in
diversified industries and ready demand for the entity's product,
fuel grade ethanol.
Key Rating Drivers & Detailed Description
Weaknesses:
* Exposure to risks related to ongoing project: DPIPL is setting up
a plant to produce ethanol with capacity of 120 kilo litre per day.
The project cost is INR146 crores. The project is scheduled to
commence operations from fiscal 2024, wherein land has been already
acquired. However, as the project is in nascent stage,
implementation risk is high. Nonetheless, the promoters' experience
and involvement of external consultants mitigate this risk to some
extent.
The company's financing risk is high, but the promoters' individual
net worth provides support to liquidity. Demand risk considered
moderate as it is expected to tie up with OMCs for offtake of
ethanol. Timely completion of the project and successful
stabilization of operations will remain key rating sensitivity
factors.
* Expected leveraged capital structure: DPIPL is expected to have
an average financial risk profile with high gearing and moderate
debt protection metrics. The project is expected to funded through
debt equity ratio of 9:1.
* Susceptibility to fluctuations in raw material prices: The prices
of raw materials, rice, and maize, depend on demand-supply factors.
Prices are volatile and can adversely affect the operating margin
over the medium term.
Strengths:
* Extensive industry experience of the promoters: The decade-long
diversified entrepreneurial experience of the promoters across
businesses has helped them develop healthy business relationships
in the region. This is expected to support the company in quickly
ramping up the operations going forward.
* Benefits from rising demand for fuel-grade ethanol: The company's
product, fuel grade ethanol, will be used by oil marketing
companies (OMCs) in ethanol-blended petrol. The government's target
of achieving E20 petrol (20% ethanol blended in petrol) by 2025
through the National Policy of Biofuels 2018 has created major
opportunities for fuel grade ethanol manufacturers, as there is a
huge gap between demand and supply. Further, assured offtake
agreement going to enter shortly with OMCs will continue to support
the business risk profile over the medium term.
Liquidity: Stretched
The company is proposing to avail debt of INR140 crore, which is
likely to create debt obligation of above INR14 crore per annum.
Timely commencement of operations and generation of sufficient cash
accrual will remain key monitorables. Promoters are likely to
support the entity through need-based equity or unsecured loans.
Outlook: Stable
CRISIL Ratings believes that DPIPL will benefit over the medium
term from its promoter extensive industry experience.
Rating Sensitivity factors
Upward factors
* Timely completion of the project without any time or cost
overruns along with ramp up of capacity
* Revenue of more than INR220 crores and operating margin of around
20%
Downward factors
* Faces a considerable delay in the commencement of its operations
* Lower-than-expected sales and operating margin leading to
significantly low cash accrual
* More than expected debt-funded capital expenditure weakening the
financial risk profile with TOLTNW ratio of more than 4 times.
DPIPL) was incorporated in 2014. The company is setting up
manufacturing unit for fuel grade ethanol and its by-products like
Distiller's Dried Grain Solubles (DDGS), Carbon Di Oxide gas and
high silica containing Rice Husk Ash (RHA).
It is part of Dashrath Prasad Group which has diverse business
interest in India as well as abroad i.e., in Zambia and promoted by
Mr. Raj Kishore Soni and Mrs. Meenakshi Soni. It is expected to
commence its operation from Nov'23.
DURGAMBA CONSTRUCTIONS: CRISIL Moves B+ Rating to Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Durgamba Constructions (DC) to 'CRISIL B+/Stable/CRISIL A4 Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.25 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 12 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with DC for
obtaining information through letters and emails dated September
21, 2022 and September 26, 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 DC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on DC is
consistent with 'Assessing Information Adequacy Risk'. Therefore,
on account of inadequate information and lack of management
cooperation, CRISIL Ratings has migrated the rating on bank
facilities of DC to 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
Established in 1997 as a proprietorship concern by Mr Santosh Kumar
Shetty, a qualified engineer, DC executes projects such as road
widening, asphalting and laying of drainage lines. The company
mainly operates in the South Kanara district in Karnataka. It also
constructs independent houses, flats and commercial complexes for
its sister concern, Matha Developers Pvt Ltd.
ENSEMBLE RESOLUTION: Voluntary Liquidation Process Case Summary
---------------------------------------------------------------
Debtor: Ensemble Resolution Professionals Private Limited
B-231, Saraswati Vihar
Pitampura, New Delhi 110034
Liquidation Commencement Date: October 7, 2022
Court: National Company Law Tribunal, New Delhi Bench
Insolvency professional: Akhil Chadha
Interim Resolution
Professional: Akhil Chadha
Ahkil Chadha & Associates
89, Pushpanjali Apartments
Plot No. 10, Sector 4
Dwarka, New Delhi 110078
E-mail: chadhakhil@gmail.com
Last date for
submission of claims: November 6, 2022
FIRST FLIGHT: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: First Flight Couriers Limited
G-1001/02, Lotus Corporate Park
Off Jay Coach Flyover
Western Express Highway
Goregaon (East) Mumbai
Maharashtra 400063
Insolvency Commencement Date: October 3, 2022
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: April 1, 2023
(180 days from commencement)
Insolvency professional: Mr. Indrajit Mukherjee
Interim Resolution
Professional: Mr. Indrajit Mukherjee
Flat No. B 405, Siddhivinayak Twins
Plot No. 9, Sector 17
Roadpali, Kalamboli
Navi Mumbai, Raigad
Maharashtra 410218
E-mail: indrajitmukherjee15@yahoo.com
cirpfirstflight@gmail.com
Last date for
submission of claims: October 17, 2022
FUJIYAMA POWER: CRISIL Withdraws B Rating on INR8.6cr Cash Loan
---------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating of Fujiyama Power Systems
Private Limited (FPS) to 'CRISIL B/Stable Issuer Not Cooperating'.
CRISIL Ratings has withdrawn its rating on bank facility of FPS
following a request from the company and on receipt of a 'no dues
certificate' from the banker. Consequently, CRISIL Ratings is
migrating the ratings on bank facilities of FPS from 'CRISIL
B/Stable Issuer Not Cooperating to 'CRISIL B/Stable'. The rating
action is in line with CRISIL Ratings' policy on withdrawal of bank
loan ratings
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8.6 CRISIL B/Stable (Migrated from
'CRISIL B/Stable ISSUER NOT
COOPERATING'; Rating Withdrawn)
Proposed Cash 6.4 CRISIL B/Stable (Migrated from
Credit Limit 'CRISIL B/Stable ISSUER NOT
COOPERATING'; Rating Withdrawn)
FPS was formed as a partnership firm of Mr Yogesh Dua and Mr Pawan
Kumar Garg in 2008. The firm, which earlier manufactured and traded
in batteries, started producing and selling UPS systems, inverters
and solar and non-solar batteries and battery charges under its own
brand, UTL since March 2015. The manufacturing facility is located
at Parvanoo, Himachal Pradesh.
GOLDILOCKS INDIA: Voluntary Liquidation Process Case Summary
------------------------------------------------------------
Debtor: Goldilocks India Private Limited
Surya Kiran Building 19
Kasturba Gandhi Marg
New Delhi 110001
Corporate office:
Plot No. 15, Institutional Area
Sector-32, Gurgaon
Haryana 122001
India
Liquidation Commencement Date: September 30, 2022
Court: National Company Law Tribunal, New Delhi Bench
Insolvency professional: Jaswant Singh
Interim Resolution
Professional: Jaswant Singh
70/15, 2nd Floor
Ashok Nagar
New Delhi 110018
E-mail: csjaswantsingh@gmail.com
- and -
8/1, LGF, 8 Block
West Patel Nagar
New Delhi 110008
E-mail: vl.goldilocks@gmail.com
Tel: 9873606667
Last date for
submission of claims: October 30, 2022
HINDUJA INSURANCE: Voluntary Liquidation Process Case Summary
-------------------------------------------------------------
Debtor: Hinduja Insurance Broking and Advisory Services Limited
No. 27A, Developed Industrial Estate
Guindy, Chennai TN 600032
IN
Liquidation Commencement Date: September 30, 2022
Court: National Company Law Tribunal, Chennai Bench
Insolvency professional: Mr. T Ranganathan
Interim Resolution
Professional: Mr. T Ranganathan
Flat no. 12, Vasavi Rangasai Apartments
New no. 48 Car Street
Triplicane, Chennai 600005
E-mail: hibvl2022@gmail.com
Tel: +919962922241
Last date for
submission of claims: October 30, 2022
JCR CINEMA: CRISIL Withdraws D Rating on INR20cr Term Loan
----------------------------------------------------------
CRISIL Ratings has reaffirmed its rating on the long-term bank
facility of JCR Cinema Private Limited (JCPL) and subsequently
withdrawn the rating at the company's request and on receipt of
no-objection certificates (NOC) from bankers. The withdrawal is in
line with the CRISIL Ratings withdrawal policy.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 20 CRISIL D (Rating Reaffirmed
and Withdrawn)
The rating continues to reflect delay in meeting term debt
obligation and average financial risk profile. These weaknesses are
partially offset by the extensive experience of the promoters in
the media industry.
Analytical Approach
The analytical approach is taken based on standalone financial
performance of JCPL.
Key Rating Drivers & Detailed Description
Weaknesses:
* Delays in servicing debt obligation: Continued delays in
servicing debt, with the latest instance of default in August 2022,
have constrained the credit risk profile of the company.
* Average financial risk profile: Modest networth and high total
outside liabilities to adjusted networth ratio, estimated at
INR10.93 crore and 4.88 times, respectively, as on March 31, 2022,
reflect the company's leveraged capital structure. Also, delay in
commencement of commercial operations resulted in subdued debt
protection metrics.
Strength:
* Extensive experience of the promoters: Promoters have experience
of more than a decade in the industry and over the years, they have
established relationships with customers and suppliers and provided
funding support through unsecured loans
Liquidity: Poor
Debt servicing was delayed because of insufficient funds and
average cash accrual. Current ratio was modest at 0.45 time as on
March 31, 2022. The promoters will continue to extend support
through equity and unsecured loans to meet working capital
requirement and debt obligation.
Rating Sensitivity Factors
Upward factors:
* Track record of timely debt servicing for at least over 90 days.
* Significant improvement in liquidity backed by increase in
operating performance or infusion of equity
Established in August 2012, JCPL is an entertainment hub, set up in
the name of 'Firestone', in Jamnagar. This hub includes a
three-screen multiplex, a drive-in theatre, a 3-star hotel, a
rooftop restaurant, two banquet halls, a retail store/supermarket,
and a gaming zone with a food court.
K N K CHEMICALS: CRISIL Lowers Rating on INR15cr Cash Loan to B
---------------------------------------------------------------
Due to inadequate information and in line with the Securities and
Exchange Board of India guidelines, CRISIL Ratings had migrated its
rating on the long-term bank facilities of K N K Chemicals (KNKC;
part of the KNK group) to 'CRISIL BB-/Stable; Issuer not
cooperating'. However, the firm's management has subsequently
started sharing the information necessary for a comprehensive
review of the rating. Consequently, CRISIL Ratings is migrating the
rating to 'CRISIL B/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 15 CRISIL B/Stable (Migrated from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
The rating migration factoINRin weakening of the business risk
profile of the group, driven by fluctuation in the operating margin
in the past three fiscals. The operating margin is expected at
4.5-5% in fiscal 2023 on account of moderation in prices of steel.
Operations are working capital intensive, as indicated by gross
current assets (GCAs) of 248 days as on March 31, 2022, driven by
large receivables of 227 days. Liquidity was poor, as reflected in
bank limit utilisation of 93.65% for the 12 months through August
2022, despite adhoc facilities availed by the group. Net cash
accrual was insufficient against debt obligation.
The rating reflects the extensive experience of the promoters in
the steel industry and the moderate financial risk profile of the
group. These strengths are partially offset by modest scale of
operations and large working capital requirement.
Analytical approach
CRISIL Ratings has combined the business and financial risk
profiles of KNKC and Sudershan Casting Pvt Ltd (SCPL) as these
entities, together referred to as the KNK group, have common
promoters and significant operational and business synergies.
Key rating drivers and detailed description
Weaknesses:
* Modest scale of operations and volatile profitability: Revenue
increased to INR101.8 crore in fiscal 2022 from INR79.7 crore in
fiscal 2021. Also, the operating margin rose to 6% in fiscal 2022,
but is expected to remain around pre-Covid level.
* Large working capital requirement: GCAs were sizeable at 159-248
days over the three fiscals through 2022 because of extensive
credit to clients.
Strengths:
* Extensive experience of the promoters: Experience of more than 10
years in the thermo-mechanically treated (TMT) bars business has
enabled the promoters to understand market dynamics and establish
strong relationships with suppliers and customers.
* Moderate financial risk profile: Owing to high reliance on
external funds, gearing and total outside liabilities to adjusted
networth ratio were 3.1 times and 4.99 times, respectively, as on
March 31, 2022. Debt protection metrics were robust, as reflected
in interest coverage and net cash accrual to total debt ratios of
2.44 times and 0.1 time, respectively, in fiscal 2022.
Liquidity: Poor
Bank limit utilisation was 93.65% for the 12 months through August
2022 on a consolidated level. Cash accrual is expected to tightly
match debt obligation over the medium term. Current ratio was
around 1.3 times as on March 31, 2022.
Outlook: Stable
CRISIL Ratings believes the KNK group will continue to benefit from
the extensive experience of its promoters.
Rating sensitivity factors
Upward factors
* Revenue of more INR100 crore and operating margin above 5%
leading to higher cash accrual of INR3 crore
* Efficient working capital management strengthening the liquidity
Downward factors
* Decline in revenue by 10% or fall in operating margin below 4%
resulting in lower cash accrual
* Significant capital withdrawal or dividend payout reducing
networth
* Large, debt-funded capital expenditure
The current promoters took over KNKC in 2010. The firm is a
partnership concern, owned and managed by Mr Rajneesh Sharma, Mr
Ramesh Chander and Ms Vijay Kumari. It manufactures TMT bars; its
facility in Samba, Jammu and Kashmir, has installed capacity of 150
MT per day.
In 2013, the management took over SCPL, which was set up in 1986.
The purpose of the takeover was backward integration for KNKC as
SCPL manufactures mild steel ingots. It supplies only to KNKC.
KOTAK URJA: Liquidation Process Case Summary
--------------------------------------------
Debtor: Kotak Urja Private Limited
311 Lotus House 33a
Vithaldas Thackersey Marg
New Marine Lines
Mumbai Maharashtra 400020
Liquidation Commencement Date: October 3, 2022
Court: National Company Law Tribunal, Mumbai Bench
Date of closure of
insolvency resolution process: October 3, 2022
Insolvency professional: Mr. Raman Devarajan
Interim Resolution
Professional: Mr. Raman Devarajan
12, ICT SQ
RA Kidwai Road
Matunga, Mumbai City
Maharashtra 400019
E-mail: devarajan.raman@gmail.com
- and -
Off. No. 9, 2nd Floor
Rajabahadur Mansion
Mumbai Samachar Marg
Mumbai 400001
E-mail: ip.kotakurja@gmail.com
Last date for
submission of claims: November 2, 2022
L&T SPECIAL: CRISIL Lowers Rating on INR400cr LT Loan to D
----------------------------------------------------------
CRISIL Ratings has downgraded its long-term rating on the loan
facility extended to L&T Special Steels and Heavy Forgings Private
Limited (LTSSHF) by Nuclear Power Corporation of India Limited
(NPCIL; 'CRISIL AAA/Stable') to 'CRISIL D' from 'CRISIL B-/Watch
Negative'. The downgrade reflects the default on the principal
repayment of the first instalment of the NPCIL loan.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 35 CRISIL A2+ (Reaffirmed)
Bank Guarantee 125 CRISIL A2+ (Reaffirmed)
Cash Credit 50 CRISIL A-/Stable (Reaffirmed)
Letter of Credit 25 CRISIL A2+ (Reaffirmed)
Long Term Loan 400 CRISIL D (Downgraded from
'CRISIL B-/Watch Negative')
Proposed Short Term
Bank Loan Facility 90 CRISIL A2+ (Reaffirmed)
Short Term Loan 75 CRISIL A2+ (Reaffirmed)
In 2018, the board of LTSSHF had proposed issuance of preference
shares of INR1,338 crore under which the secured loan of INR348
crore (including INR178 crore of accumulated interest) from NPCIL
and loan of INR990 crore from Larsen and Toubro Limited (L&T;
'CRISIL AAA/Stable/CRISIL A1+') were to be converted to convertible
preference shares. This was necessitated by the continued weak
operating performance of the company and inadequate cash flow to
service the debt. However, the issuance has been pending as the
NPCIL board has not approved the conversion. CRISIL Ratings will
continue to engage with the management and monitor developments
regarding conversion of debt and issuance of preference shares. On
account of default on this loan, CRISIL Ratings does not expect
NPCIL to take any adverse action against LTSSHF that could impair
the latter's business or financial prospects. However, any
development on the contrary, will be a sensitive factor for the
credit rating on the external bank loan facilities.
CRISIL Ratings has reaffirmed its 'CRISIL A-/Stable/CRISIL A2+'
ratings on the bank facilities of LTSSHF.
The ratings continue to reflect the strong business linkages of
LTSSHF with its leading promoters, L&T and NPCIL. This strength is
partially offset by exposure to risks related to scaling up of
operations and intense competition in the forgings business and
weak financial risk profile because of continued losses and delays
in equity infusion by the parents. While the order book has
improved over the past six months backed by strategic projects from
L&T in the defence segment, the business prospects remain subdued
in the nuclear power segment thereby limiting the growth potential
of the company. CRISIL Ratings understands that L&T will continue
to support any cash flow mismatch towards the external loan
facilities of LTSSHF.
Analytical Approach
CRISIL Ratings has applied its parent notch-up framework to factor
in the extent of distress support available from L&T towards
external bank loan facilities.
CRISIL Ratings has treated around 50% of the cumulative
non-convertible preference shares of INR642 crore as equity and the
rest as debt. This is because these shares are subscribed by the
promoters, have maturity ranging from 7 to 9 years, carry an
interest lower than the market rate, and are subordinated to
external debt of LTSSHF.
Key Rating Drivers & Detailed Description
Strengths:
* Strong business linkages with the parents, L&T and NPCIL, and
financial support from L&T: CRISIL Ratings believes LTSSHF will
benefit from its strong business linkages with L&T and NPCIL, which
are its largest customers, accounting for more than 90% of the
orders. LTSSHF caters to bulk of the heavy forgings requirement of
L&T and ensures a secured supply chain for the forgings requirement
of NPCIL. The company has demonstrated its capability in the heavy
engineering, nuclear power and defence segments which are key
growth areas for L&T. Over the years, L&T has extended unsecured
loans totaling to INR1,898 crore (principal amount of INR1,730
crore and accrued interest of INR168 crore) to LTSSHF as on June
30, 2022. Support from NPCIL in the form of secured loans stood at
INR462 crore (principal of INR170 crore and accrued interest of
INR292 crore) as on June 30, 2022. L&T had infused INR475 crore in
the form of non-convertible cumulative redeemable preference shares
in fiscal 2018. Also, NPCIL had converted INR167 crore of secured
loans to preference shares as on December 7, 2017.
* Favourable long-term demand prospects for heavy forgings in
India: Demand for heavy forgings is expected to improve over the
long term, driven by nuclear power and defence sectors and
supplementary demand from the hydrocarbon and oil and gas
industries. LTSSHF had order book of INR529 crore as on June 30,
2022, with 63% of the orders from L&T. The order book improved in
the last quarter of fiscal 2022 with two large orders from L&T's
Defence division.
The heavy forgings segment has very few specialist manufacturers
and LTSSHF's competitive advantage stems from its short turnaround
time and low cost structure compared with imports. Moreover, it is
the only domestic player with heavy forging capability. It is well
positioned to benefit from the government's thrust towards Make in
India. Furthermore, the established market reputation of its
promoters gives the company an edge over its competitors.
Weaknesses:
* Average operating performance and negative networth: LTSSHF's
operating performance remained weak in the past mainly on account
of weak order inflow. The company reported operating profit over
the past four fiscals, backed by order inflows and tight control on
operational cost. Yet, it continues to report losses due to
interest accrued on loans from the promoters. Furthermore, because
of delay in equity infusion by the parents, networth fell to
negative INR2,422 crore as on March 31, 2022, from INR364 crore as
on March 31, 2013.
* Exposure to risks related to scaling up of operations and intense
competition in the forgings business: LTSSHF began commercial
operations in October 2012. Although the company has ramped up
operations over the years to achieve operational profitability, it
continues to be constrained by lack of scale resulting in limited
operating leverage. Post the Fukushima disaster, new large-scale
nuclear projects were either delayed or cancelled in India. The
commissioning of LTSSHF's capacity coincided with increases in
global capacities by large forging manufacturers. Revenue growth is
expected to improve over the medium term and will largely be linked
to investments in the nuclear, defence and hydrocarbon industries.
Also, the company faces intense competition from global players
with better economies of scale
Liquidity: Adequate
LTSSHF's liquidity remains adequate, backed by support from L&T.
The parent has been funding the losses and interest obligation of
LTSSHF through unsecured short-term loans (INR1,898 crore as on
June 30, 2022). The company does not have any external long-term
debt.
Outlook: Stable
Outlook on the external debt facilities: Stable
CRISIL Ratings believes LTSSHF will continue to benefit from the
financial support from L&T over the medium term.
Rating Sensitivity factors
Rating sensitivity factors on external debt facilities
Upward factors:
* Better operating performance, leading to breakeven at the profit
after tax (PAT) level
* Further equity infusion by the parents leading to better
financial flexibility
Downward factors:
* Downward revision in the credit rating of the parent L&T
Change in the stance of support from the parent L&T
* Change in the name of the company from the present shared name of
L&T
Rating sensitivity factors on the NPCIL loan
Upward factors:
* Conversion of the loan to convertible preference shares as
proposed by the Board
* Track record of timely debt servicing for at least 90 days post
regularization of overdues
LTSSHF was incorporated in July 2009 and became a 74:26 joint
venture between L&T and NPCIL in November 2009. The company has a
fully integrated manufacturing facility at Hazira, near Surat, in
Gujarat, for supply of heavy forgings mainly to the hydrocarbon and
nuclear power sectors. The first phase of the project that entailed
an investment of INR1,700 crore, with a press capability of 9,000
tonne per annum, commenced operations in October 2012. The second
phase has been put on hold by the company.
M G F MOTORS: CRISIL Withdraws D Rating on INR14cr Cash Loan
------------------------------------------------------------
CRISIL Ratings has withdrawn the ratings on bank facilities of M G
F Motors Limited (MGF):
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 14 CRISIL D/Issuer Not
Cooperating
Inventory Funding 9.5 CRISIL D/Issuer Not
Facility Cooperating (Withdrawn)
Inventory Funding 5 CRISIL D/Issuer Not
Facility Cooperating (Withdrawn)
Inventory Funding 5 CRISIL D/Issuer Not
Facility Cooperating (Withdrawn)
Inventory Funding 10 CRISIL D/Issuer Not
Facility Cooperating (Withdrawn)
Inventory Funding 2 CRISIL D/Issuer Not
Facility Cooperating (Withdrawn)
Term Loan 3.5 CRISIL D/Issuer Not
Cooperating
Term Loan 3.25 CRISIL D/Issuer Not
Cooperating
CRISIL Ratings has been consistently following up with MGF for
obtaining information through letters and emails dated August 24,
2022 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MGF, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MGF
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MGF continues to be 'CRISIL D Issuer Not Cooperating'.
CRISIL Ratings has withdrawn its rating on INR24.5 Crore Inventory
Funding Facility on the bank facilities of MGF on the request of
the company and after receiving no objection certificate from the
bank. The rating action is in-line with CRISIL Ratings policy on
withdrawal of its rating on bank loan facilities.
MML, set up in 1998, is an authorized dealer for HMIL in Kerala.
The company operates its showrooms under the MGF Hyundai brand.
MATIZ METALS: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Matiz Metals Private Limited
Byrnihatribhoi Byrnihat
Meghalaya ML 783101
IN
Insolvency Commencement Date: October 6, 2022
Court: National Company Law Tribunal, Guwahati Bench
Estimated date of closure of
insolvency resolution process: March 28, 2023
(180 days from commencement)
Insolvency professional: Amit Pareek
Interim Resolution
Professional: Amit Pareek
4th Floor, Ram Prasad Complex
Chatribari, Guwahati 781001
E-mail: amitpareek99@yahoo.com
matizmetalsrp@gmail.com
Last date for
submission of claims: October 14, 2022
NARAYAN INDUSTRIES: CRISIL Moves B+ Rating from Not Cooperating
---------------------------------------------------------------
Due to inadequate information and in line with the Securities and
Exchange Board of India guidelines, CRISIL Ratings had migrated its
rating on the long-term bank facilities of Narayan Industries -
Allahabad (NIA) to 'CRISIL B+/Stable; Issuer not cooperating'.
However, the firm's management has subsequently started sharing the
information necessary for a comprehensive review of the rating.
Consequently, CRISIL Ratings is migrating its rating to 'CRISIL
B+/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10.65 CRISIL B+/Stable (Migrated from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Term Loan 2.01 CRISIL B+/Stable (Migrated from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Working Capital 1.34 CRISIL B+/Stable (Migrated from
Term Loan 'CRISIL B+/Stable ISSUER NOT
COOPERATING')
The rating reflects the firm's modest scale of operations amid
intense competition, susceptibility to volatility in raw material
prices and modest financial risk profile. Operating income stood at
INR34.53 crore in fiscal 2022 and is expected above INR40 crore in
fiscal 2023. The firm is expanding capacity from 8 tonne per hour
to 12 tonne per hour, which is likely to be completed by November
2023. Successful implementation of the planned capital expenditure
(capex) will be a key monitorable over the medium term. These
weaknesses are partially offset by the extensive experience of the
partners in the rice industry.
Analytical approach:
Unsecured loan of INR1.5 crore as on March 31, 2022, from the
partners has been treated as neither debt nor equity as the loan
carries lower-than-bank interest and it may be retained in the
business over the medium term.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations amid intense competition: Intense
competition in the rice milling business constrains scalability, as
reflected in modest revenue of around INR34.53 crore, along with
operating margin of 3.7%, in fiscal 2022. The revenue is expected
to remain small at INR40 crore in fiscal 2023, with operating
margin at 3.75-4%, and stood at INR18.75 crore as of September
2022. Also, competition restricts the firm's bargaining power and
precludes any benefits from economies of scale.
* Average financial risk profile: Networth was modest at INR2.79
crore and gearing high at 4.45 times as on March 31, 2022. Debt
protection metrics were subdued, as reflected in interest coverage
and net cash accrual to total debt ratios of 1.6 times and 0.03
time, respectively, in fiscal 2022. However, interest coverage
ratio is expected to improve to 1.75-2 times over the medium term.
Strength:
* Extensive experience of the partners: The partners have
experience of over 10 years in the rice industry through other
group entities. Their experience, strong understanding of local
market dynamics and healthy relationships with customers and
suppliers will continue to support the business.
Liquidity: Stretched
Bank limit utilisation was high at 89.83% on average for the 12
months through June 2022. Cash accrual, above INR0.37 crore in
fiscal 2022 and expected at more than INR0.45 crore in fiscal 2023,
will just about cover debt obligation of INR0.35 crore. Current
ratio was moderate at 1.34 times as on March 31, 2022.
Outlook: Stable
CRISIL Ratings believes NIA will continue to benefit from the
extensive experience of the partners
Rating sensitivity factors
Upward factors:
* Revenue growth of 25% and stable operating margin leading to net
cash accrual of more than INR2 crore
* Improvement in the financial risk profile, with gearing below 3.5
times
Downward factors:
* Decline in revenue by 20% and fall in operating profitability
leading to cash accrual below INR0.25 crore
* Increase in the working capital requirement, with gross current
assets above 200 days, weakening the financial risk profile and
liquidity
NIA was set up in 2015 in Prayagraj, Uttar Pradesh, by Mr Manish
Kesharwani and his family members. The firm undertakes rice milling
and shelling.
NOVASYS GREENERGY: CRISIL Reaffirms B+ Rating on INR13cr Loan
-------------------------------------------------------------
CRISIL Ratings has reaffirmed its rating 'CRISIL B+/Stable' on the
long-term bank facility of Novasys Greenergy Private Limited
(NGPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 13 CRISIL B+/Stable (Reaffirmed)
Long Term Loan 5 CRISIL B+/Stable (Reaffirmed)
The rating continues to reflect the modest scale of operations amid
intense competition, subdued debt protection metrics and large
working capital requirement. These weaknesses are partially offset
by the extensive experience of the promoters in the energy business
and fund support from promoters leading to moderate capital
structure.
Analytical Approach:
Unsecured loans of INR16.71 crore (as on March 31, 2022) have been
treated as 75% equity and 25% debt as it is expected to remain in
the business. There is an interest charge which is plough back into
the business to support funding requirements.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations and intense competition: Intense
competition may continue to constrain scalability, pricing power
and profitability. Revenue is modest, around INR90 crore in fiscal
2022, but should improve over the medium term, aided by better
capacity utilization
* Subdued debt protection metrics: Debt protection metrics are
subdued with interest coverage ratio of 1.7 times and net cash
accrual to total debt ratio of 0.08 time for fiscal 2022. Net cash
accrual to total debt has declined due to additional debt taken by
the company for expansion, however with expected increase in scale
of operations it is expected to improve over the medium term.
* Large working capital requirement: Gross current assets were high
at 245 days as on March 31, 2022, driven by moderate receivables of
20 days and large inventory of 182 days. Inventory days were high
due to purchase of raw material was done at the end of fiscal 2022.
Working capital requirement is expected to remain large over the
medium term.
Strengths:
* Extensive experience of the promoters: Over two decades of
presence in the solar panel manufacturing industry has helped the
promoters build strong relationships with suppliers and customers
and will continue to support the business.
* Moderate capital structure: Capital structure of the company is
marked by moderate networth of INR22.13 crores and high gearing and
TOLANW of 1.69 times and 2.71 times respectively as of March 2022.
However, this is expected to improve over the medium term with
steady accretion to reserve.
Liquidity: Stretched
Expected cash accrual of INR3-3.5 crore should comfortably cover
the maturing debt of INR1.98 and INR3.29 crore for fiscal 2023 and
2024, respectively. Bank limit utilization was high, averaging
around 98% for the 12 months ended May 31, 2022. Cash and Balance
was at INR0.77 crores as of March 2022. The promoters may extend
support via unsecured loans to cover the working capital
requirement and debt obligation.
Outlook: Stable
CRISIL Ratings believes NGPL will continue to benefit from the
extensive experience of its promoters
Rating Sensitivity factors
Upward Factors
* Sustained revenue growth and stable operating profitability
leading to net cash accrual over INR4 crores.
* Improvement in working capital cycle and bank limit utilization.
Downward Factors
* Decline in revenue and operating margin, leading to net cash
accrual less than INR1.5 crores
* Further deterioration of working capital cycle.
NGPL was incorporated as Jiyamaa Sales & Marketing Pvt Ltd in 2004
and was engaged in coal trading. It got its present name in 2017
and from 2019 manufactures solar power modules and offer solar
power management services. The registered office is in Kolkata,
West Bengal. The manufacturing facility is at Nagpur, Maharashtra.
Operations are managed by Mr. Ramesh Bansal and his family
members.
PRADHAMA MULTI: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings has withdrawn the ratings on certain bank facilities
of Pradhama Multi Speciality Hospitals & Research Institute Limited
(PMSHRIL), as:
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL D (Issuer Not
Cooperating)
Cash Credit 1.75 CRISIL D (Issuer Not
Cooperating)
Cash Credit 1.25 CRISIL D/Issuer Not
Cooperating (Withdrawn)
Cash Credit 1 CRISIL D (Issuer Not
Cooperating)
Cash Credit 0.75 CRISIL D (Issuer Not
Cooperating)
Cash Credit 1.75 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 25 CRISIL D/Issuer Not
Cooperating (Withdrawn)
Long Term Loan 15 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 30 CRISIL D/Issuer Not
Cooperating (Withdrawn)
Long Term Loan 10 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 15 CRISIL D/Issuer Not
Cooperating (Withdrawn)
Long Term Loan 25 CRISIL D/Issuer Not
Cooperating (Withdrawn)
Long Term Loan 2.5 CRISIL D/Issuer Not
Cooperating (Withdrawn)
Long Term Loan 3 CRISIL D/Issuer Not
Cooperating (Withdrawn)
Long Term Loan 2.5 CRISIL D/Issuer Not
Cooperating (Withdrawn)
Long Term Loan 1.5 CRISIL D/Issuer Not
Cooperating (Withdrawn)
Long Term Loan 1.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PMSHRIL for
obtaining information through letters and emails dated December 14,
2021 and January 12, 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 PMSHRIL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
PMSHRIL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of PMSHRIL continues to be 'CRISIL D Issuer Not
Cooperating'.
CRISIL Ratings has withdrawn its rating on Rs 1.25 Crore Cash
Credit and INR104.5 Long Term Loan on the bank facilities of
PMSHRIL on the request of the company and after receiving no
objection certificate from the bank. The rating action is in-line
with CRISIL Ratings' policy on withdrawal of its rating on bank
loan facilities.
Incorporated in 2014, PMSHRIL is setting up a 593-bed
multi-specialty hospital in Visakhapatnam, Andhra Pradesh. The
operations of the hospital will be managed by Dr. Visweswara Rao
Pusarla and Dr. K Ramamurthy Kummaraganti. PMSHRIL started
commercial operations in July, 2017.
PRASAR SHIKSHAN: CRISIL Moves B+ Ratings to Not Cooperating
-----------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Prasar
Shikshan Evam Seva Sansthan (Prasar) to 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Corporate Loan 2.69 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Long Term Loan 7.74 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Overdraft Facility 5 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Fund- 5.55 CRISIL B+/Stable (ISSUER NOT
Based Bank Limits COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with Prasar for
obtaining information through letters and emails dated August 30,
2022, September 21, 2022 and September 26, 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 Prasar, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
Prasar is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the rating on
bank facilities of Prasar to 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
Prasar was set up in 2001, at Ujjain, Madhya Pradesh, to provide
technical education in engineering, pharmacy, computer science, and
management. Chairman and founder, Mr Praveen Vashistha, is assisted
by other senior members in matters of administration. The five
institutes are together known as the Mahakal Group of Institutes
(MIT).
R R INFRASTRUCTURE: CRISIL Hikes Rating on INR6cr Loan to B+
------------------------------------------------------------
Due to inadequate information and in line with the Securities and
Exchange Board of India guidelines, CRISIL Ratings had migrated its
ratings on the bank facilities of R R Infrastructure (RRI) to
'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating'. However, the
firm's management has subsequently started sharing the information
necessary for a comprehensive review of the ratings. Consequently,
CRISIL Ratings is migrating the ratings to 'CRISIL B+/Stable/CRISIL
A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 16 CRISIL A4 (Migrated from
'CRISIL A4 ISSUER NOT
COOPERATING')
Letter of Credit 10 CRISIL A4 (Migrated from
'CRISIL A4 ISSUER NOT
COOPERATING'))
Overdraft Facility 6 CRISIL B+/Stable (Migrated
from 'CRISIL B/Stable ISSUER
NOT COOPERATING')
Proposed Bank 1 CRISIL A4 (Migrated from
Guarantee 'CRISIL A4 ISSUER NOT
COOPERATING')
The ratings reflect the extensive experience of the partners in the
heavy electrical equipment and engineering, procurement and
construction (EPC) industry and the moderate financial risk profile
of the firm. These strengths are partially offset by large working
capital requirement and susceptibility to fluctuations in raw
material prices.
Key Rating Drivers & Detailed Description
Weaknesses
* Large working capital requirement: Operations are working capital
intensive, as reflected in GCA of 184 days as on March 31, 2022,
driven by receivables of 161 days, and are expected at a similar
level over the medium term.
* Susceptibility to fluctuations in raw material prices: Contracts
entered by the firm normally do not contain price escalation
clause. Vulnerability to volatility in raw material prices
persists, as reflected in operating margin of 6-8% in the three
fiscals through 2022.
Strengths
* Extensive experience of the partners: The partners have
experience of 10 years in the heavy electrical equipment and EPC
industry. This has helped the firm get high-value orders from power
distribution companies and establish strong relationships with
suppliers.
* Moderate financial risk profile: Networth was small at INR3.65
crore and total outside liabilities to adjusted networth ratio at
1.59 times as on March 31, 2022. Debt protection metrics were
adequate, as reflected in interest coverage and net cash accrual to
adjusted debt ratios of 3.12 times and 0.33 time, respectively, in
fiscal 2022.
Liquidity: Stretched
Bank limit utilisation was moderate at 52.12% on average for the 12
months through August 2022. Cash accrual, expected at INR51-75 lakh
per annum, will sufficiently cover yearly term debt obligation of
INR25 lakh over the medium term. Current ratio was healthy at 1.79
times as on March 31, 2022.
Outlook: Stable
CRISIL Ratings believes RRI will continue to benefit over the
medium term from the extensive experience of its promoters.
Rating Sensitivity Factors
Upward factors
* Revenue growth of 15-20% and stable operating margin leading to
cash accrual of more than INR1.5 crore
* Improvement in the working capital cycle and sustenance of
capital structure
Downward factors
* Increase in GCAs above 300 days
* Large, debt-funded capex or acquisition or sizeable capital
withdrawal, weakening the financial risk profile and liquidity
Set up in 1997, RRI is engaged in the erection of extra high
voltage (EHV) transmission lines, substations and rural
electrification on turnkey basis. The firm carries out such
projects for agriculture activities in Karnataka. Mrs. Ghanta
Sravya, Mr Ghanta Rajasekhar Rao and Mr Raparla Srinivasa Rao are
the partners.
R. J. CONSTRUCTION: CRISIL Moves B+ Ratings to Not Cooperating
--------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of R. J.
Construction (RJC) to 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.75 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 6 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Long Term 1.45 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
Term Loan 1.80 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with RJC for
obtaining information through letters and emails dated
September 21, 2022 and September 26, 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 RJC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RJC
is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the rating on
bank facilities of RJC to 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
Established in 1996, Tamil Nadu-based RJC is owned and managed by R
Jayabalan. The firm is engaged in civil construction works, such as
construction of bridges and canal, irrigation and electrification
works.
RAJESH CONSTRUCTION: CRISIL Moves B+ Ratings to Not Cooperating
---------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Rajesh
Construction Company (RCC) to 'CRISIL B+/Stable/CRISIL A4 Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 4.75 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit/ 3 CRISIL B+/Stable (ISSUER NOT
Overdraft facility COOPERATING; Rating Migrated)
Proposed Long Term 2.25 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with RCC for
obtaining information through letters and emails dated September
22, 2022 and September 28, 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 RCC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RCC
is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the rating on
bank facilities of RCC to 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
RCC was set up in 1971 as a partnership between Mr Rajesh
Chandrachud (a civil engineer) and his son, Mr Aditya Chandrachud.
Mr Aditya Chandrachud joined the family business in 2016. The
Mumbai-based firm constructs roads and lays sewerage pipelines for
government departments. RCC is registered as an AA class contractor
with Mumbai Municipal Corporation, and as a Class I contractor with
the Public Works Department in Maharashtra, the Maharashtra Jeevan
Pradhikaran, and the road construction departments of the
governments of Jharkhand and Madhya Pradesh.
RAJESH LANDMARK: Bankruptcy Court Admits Insolvency Bid
-------------------------------------------------------
The Economic Times reports that the bankruptcy court has admitted
an insolvency plea against real estate developer Rajesh Landmark
Projects, a subsidiary of Mumbai-based realtor Rajesh Lifespace,
filed by Mumbai-based NBFC IREP Credit Capital.
The Mumbai bench of NCLT has appointed Bhrugesh Amin as the
insolvency professional, ET discloses.
According to the report, IREP Credit Capital has sought to invoke
the provisions of IBC for a resolution of an unresolved financial
debt of nearly INR27 crore. The dues include secured and redeemable
non-convertible debentures worth INR18 crore issued by the
developer, redemption premium, interest, and penal interest.
Rajesh Landmark Projects Private Limited owns and develops real
estate properties.
RAMKRISHNA ELECTRICALS: Insolvency Resolution Process Case Summary
------------------------------------------------------------------
Debtor: Ramkrishna Electricals Limited
N-5 MIDC Nagpur
MH 440016
IN
Insolvency Commencement Date: October 10, 2022
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: April 8, 2023
Insolvency professional: Mr. Sanjay Shrivastava
Interim Resolution
Professional: Mr. Sanjay Shrivastava
205 B Suraksha Apartment
Hindustan Colony
Amravati Road, Nagpur
Maharashtra 440033
E-mail: casanjayshrivastava@gmail.com
ramakrishna.ibc@gmail.com
Last date for
submission of claims: October 24, 2022
RAVI CRANES: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Ravi Cranes and Movers Limited
Plot No. 9, Model Colony
Hyderabad TG
IN
Insolvency Commencement Date: October 7, 2022
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: March 24, 2023
Insolvency professional: Mummaneni Vazra Laxmi
Interim Resolution
Professional: Mummaneni Vazra Laxmi
Flat No. G-2, ENCEE Residency
Nagarjuna Nagar Colony
Yellarreddyguda
Hyderabad 500073
E-mail: emailtolak@gmail.com
Last date for
submission of claims: October 20, 2022
RAYS POWER: CRISIL Withdraws B Rating on INR40cr Cash Loan
----------------------------------------------------------
CRISIL Ratings has withdrawn the ratings on certain bank facilities
of Rays Power Infra Private Limited (RPIPL), as:
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 10 CRISIL A4/Issuer Not
Cooperating (Withdrawn)
Bank Guarantee 10 CRISIL A4/Issuer Not
Cooperating (Withdrawn)
Bank Guarantee 20.85 CRISIL A4/Issuer Not
Cooperating (Withdrawn)
Bank Guarantee 5 CRISIL A4/Issuer Not
Cooperating (Withdrawn)
Bank Guarantee 20 CRISIL A4/Issuer Not
Cooperating (Withdrawn)
Bank Guarantee 12 CRISIL A4/Issuer Not
Cooperating (Withdrawn)
Bank Guarantee 20 CRISIL A4/Issuer Not
Cooperating (Withdrawn)
Cash Credit 3 CRISIL B/Stable/Issuer Not
Cooperating (Withdrawn)
Cash Credit 10 CRISIL B/Stable/Issuer Not
Cooperating (Withdrawn)
Cash Credit 3 CRISIL B/Stable/Issuer Not
Cooperating (Withdrawn)
Cash Credit 40 CRISIL B/Stable/Issuer Not
Cooperating (Withdrawn)
Cash Credit 4 CRISIL B/Stable/Issuer Not
Cooperating (Withdrawn)
Cash Credit 2 CRISIL B/Stable/Issuer Not
Cooperating (Withdrawn)
Cash Credit 5 CRISIL B/Stable/Issuer Not
Cooperating (Withdrawn)
Letter of Credit 2 CRISIL A4/Issuer Not
Cooperating (Withdrawn)
Letter of Credit 13 CRISIL A4/Issuer Not
Cooperating (Withdrawn)
Proposed Bank 26.15 CRISIL A4/Issuer Not
Guarantee Cooperating (Withdrawn)
Proposed Bank 4.00 CRISIL A4/Issuer Not
Guarantee Cooperating (Withdrawn)
Proposed Bank 15.00 CRISIL A4/Issuer Not
Guarantee Cooperating (Withdrawn)
Proposed Bank 4.00 CRISIL A4/Issuer Not
Guarantee Cooperating (Withdrawn)
Proposed Non Fund 15 CRISIL A4/Issuer Not
based limits Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with RPIPL for
obtaining information through letters and emails dated February 8,
2022 and April 18, 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 RPIPL. This restricts CRISIL
Ratings' ability to take a forward looking view on the credit
quality of the entity. CRISIL Ratings believes that rating action
on RPIPL is consistent with 'Assessing Information Adequacy Risk'.
CRISIL Ratings has Continues the ratings on the bank facilities of
RPIPL to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'.
CRISIL Ratings has withdrawn its rating on the bank facilities of
RPIPL on the request of the company and after receiving no
objection certificate from the bank. The rating action is in-line
with CRISIL Rating's policy on withdrawal of its rating on bank
loan facilities.
RPIPL, incorporated in 2011, sells solar power and has set up solar
projects under three segments: EPC, co-development model, and
rooftop. The company also constructs solar power plants for its
special-purpose vehicles (SPVs). All its SPVs are held through its
independent power producer-holding company, Shining Sun Power Pvt
Ltd. The stepdown subsidiaries are Shining Sun Power (Telangana)
Pvt Ltd, Earth Solar Power Pvt Ltd, International Solar Corporation
Pvt Ltd, Sunheti Solar Pvt Ltd, Kavit Green Energy Pvt Ltd,
Tirunveli Solar Projects Pvt Ltd, JRK Solar Pvt Ltd and Brewer
Energy Pvt Ltd. Mr Ketan Mehta, Mr Pawan Kumar Sharma, and Mr
Sanjay Garudapally are the promoters.
RITU AUTOMOBILES: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Ritu Automobiles Private Ltd
125, Gove
Near Kongaon Toll Naka
Kalyan-Bhiwandi Road
Kalyan Thane
MH 421311
Insolvency Commencement Date: October 4, 2022
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: April 1, 2023
Insolvency professional: Rajeev Mannadiar
Interim Resolution
Professional: Rajeev Mannadiar
401, Darshan CHS
Raghunath Dadaji Street
Fort, Near Fountain Plaza
Mumbai 400001
Tel: 02249715974
E-mail: rajeev@integroip.co
rituautomobilescirp@gmail.com
Last date for
submission of claims: October 17, 2022
S. S. SEA: CRISIL Assigns B+ Rating to INR5.9cr LT Loan
-------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable/CRISIL A4'
ratings to the bank facilities of S. S. Sea Food (SSSF).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Export Packing
Credit 10 CRISIL A4 (Assigned)
Foreign Documentary
Bills Purchase 2 CRISIL A4 (Assigned)
Proposed Long Term
Bank Loan Facility 5.9 CRISIL B+/Stable (Assigned)
Term Loan 4.4 CRISIL B+/Stable (Assigned)
Working Capital
Term Loan 2.7 CRISIL B+/Stable (Assigned)
The rating reflects SSSF's exposure to volatility in raw material
prices and change in government policies. This weakness is
partially offset by extensive industry experience of the partners
and moderate working capital cycle.
Key Rating Drivers & Detailed Description
Weakness:
* Exposure to volatility in raw material prices and change in
government policies: Marine products have a shelf life of around a
year, so inventory is maintained depending on prices and market
conditions. Seasonal availability of marine products makes prices
volatile. Any adverse movement in prices may marginally strain its
operating margin. Further the viability of frozen sea food
companies, is dependent on the support from government in the form
of incentive schemes. Any withdrawal of the schemes can adversely
impact the viability of operations over the medium term.
Strengths:
* Extensive industry experience of the partners: The partners have
an experience of over a decade in marine products industry. This
has given them an understanding of the dynamics of the market and
enabled them to establish relationships with suppliers and
customers, leading to timely scale up of operations marked by
estimated revenue of INR121 crore in fiscal 2022 from INR34 crore
in first year of commercial operations in fiscal 2019.
* Moderate working capital cycle: Gross current assets (GCA) were
less than 80 days over the three fiscals ended March 31, 2022. GCAs
is estimated to be around 72 days as on March 31, 2022 driven by
debtors of 43 days and inventory of 27 days. Going forward, working
capital cycle is expected to reduce with prudent inventory policy
and debtors' collection cycle.
Liquidity: Stretched
Cash accruals are expected to be in range INR1.8-2.5 crore which
are sufficient against term debt obligation of INR1.7-2 over the
medium term. In addition, it will be act as cushion to the
liquidity of the company. Current ratio is moderate at 1.5 times on
March 31, 2022. Additionally, cash and bank balance of around
INR0.26 crore as on March 31, 2022 support liquidity.
Outlook: Stable
CRISIL Ratings believe SSSF will continue to benefit from the
extensive experience of its promoter, and established relationships
with clients.
Rating Sensitivity factors
Upward factors
* Improvement in scale of operations leading to net cash accruals
to repayment obligation ratio of 1.3 times
* Improvement in financial risk profile
Downward factors
* Decline in profitability leading to net cash accrual to below
INR1.7 crore
* Large debt-funded capital expenditure and/or substantial increase
in its working capital requirements and/or drawings thus weakening
its liquidity
SSSF was established in 2019, it is located in West Bengal. SSSF is
owned & managed by Mr. Sankar Kumar Datta and Mr. Sankar Paul. SSSF
processes and sells frozen seafood products both in the domestic
and international markets.
SAMARTHA LEISURES: CRISIL Reaffirms D Rating on INR3.5cr Loan
-------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL D' rating on the bank
facilities of Samartha Leisures and Restaurants Private Limited
(SLRPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.5 CRISIL D (Reaffirmed)
Long Term Loan 2.8 CRISIL D (Reaffirmed)
The ratings continue to reflect instances of delays in servicing of
debt obligation, modest scale of operations and weak capital
structure. These weaknesses are partially offset by the extensive
experience of the promoters.
Key Rating Drivers & Detailed Description
The ratings reflect delay by the company in servicing debt because
of weak liquidity
Weaknesses:
* Modest scale of operations: Revenue was estimated to be modest at
INR2.26 crore in fiscal 2022 against INR1.55 crore in fiscal 2021,
majorly on account of disruptions related to the Covid-19 pandemic.
Revenue and profitability are expected remain constrained over the
medium term.
* Weak capital structure: Losses has resulted in erosion of
networth and thus leveraged capital structure with outside
liabilities estimated of around INR8.16 crore as on March 31,
2022.
Strengths:
* Extensive experience of the promoters: The promoter family
ventured into the hotel industry in 2002 through a partnership
firm, Hotel Aditya Palace in Bhusawal, in Jalgaon (Maharashtra).
Benefits from the promoters' experience is expected to continue to
support the business.
Liquidity: Poor
Liquidity is poor with modest net cash accruals and almost fully
utilized bank lines. Company has negligible cash and bank balances
at present. There have been delays in servicing of repayment
obligations for funded interest term loan by the company. No major
capex is expected to be incurred in the medium term. Liquidity is
partially supported by GECL of INR2.26 crores as on March 31,
2022.
Rating Sensitivity factors
Upward factors:
* Regularisation of all bank facilities and track record of
satisfactory operations without irregularities, at least for a
period of over 90 days
* Improvement in operating performance leading to net cash accrual
and liquidity position.
Incorporated in 2010, SLRPL, promoted by Mr Vinayak Phalak and Ms
Rohini Phalak, operates a hotel, Tanarika Resort, at Bhusaval. It
is equipped with 2 suites, 33 business class rooms, 2 banquet
halls, a bar, a multi-cuisine restaurant, a conference hall, a
lawn, and a swimming pool.
SIMOLA TILES: CRISIL Moves D Debt Ratings to Not Cooperating
------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Simola
Tiles LLP (SOTELP) to 'CRISIL D/CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 4 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 8.5 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 6.5 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Term Loan 23 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Term Loan 15 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
In accordance with the terms of the rating agreement with SOTELP,
CRISIL Ratings has sent repeated reminders for payment of fees
towards the surveillance exercise through letters and emails dated
June 16, 2022 and August 10, 2022 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/ reviewed with
the suffix 'ISSUER NOT COOPERATING'.
On account of lack of management cooperation towards non-payment of
fees, CRISIL Ratings has migrated the rating on bank facilities of
SOTELP to 'CRISIL D/CRISIL D Issuer not cooperating'.
SOTELP established in 2016 and manufactures glazed vitrified tiles
which are sold under the brand name, Simola. The manufacturing
facility is at Morbi.
SKS TEXTILES LIMITED: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: S K S Textiles Limited
H.No. 1246/1K, Gala: 1-9
1st Floor, Blndg B-4
Prithvi Complex
Kalher Village, Thane
Maharashtra 421302
India
Insolvency Commencement Date: September 30, 2022
Court: National Company Law Tribunal, Navi Mumbai Bench
Estimated date of closure of
insolvency resolution process: March 27, 2023
Insolvency professional: Anurag Jain
Interim Resolution
Professional: Anurag Jain
1401 Oriental Heights
Sector-44, Plot-158
Seawoods West, Navi Mumbai
Maharashtra 400706
E-mail: ipanuragjain@gmail.com
- and -
Resolve-IPE Private Limited
1003, 10th Floor
Satra Plaza, Sector 19D
Palm Beach Road
Vashi, Navi Mumbai 400703
E-mail: sks@resolvegroup.co.in
Last date for
submission of claims: October 12, 2022
SREI EQUIPMENT: CRISIL Keeps B+(SO) Rating in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the rating for the bank facilities of SREI
Equipment Finance Limited (SEFL) continues to remain in the 'Issuer
Not Cooperating' category.
Trust Amount
Name Facilities (INR Crore) Ratings
----- ---------- ----------- -------
IIALRT-I Series A PTCs LT 12.51 CRISIL B+ (SO)/Watch
Negative (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SEFL through
emails dated March 26, 2021, April 2, 2021, July 21, 2021, October
4, 2021, January 7, 2022, April 5, 2022, June 23, 2022 and Sept
30,2022. However SEFL has been unable to provide up to date
information on an ongoing basis.
'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 adequate information on the performance
of the obligors in the pool and its reconciliation with the payouts
done. CRISIL Ratings believes that the rating action is consistent
with 'Assessing Information Adequacy Risk'.
On October 4, 2021, RBI superseded the Board of Directors of SIFL
and SEFL owing to governance concerns and payment defaults by SREI
Group Companies. Through an order on October 08, 2021, NCLT Kolkata
bench initiated corporate insolvency resolution process against
SREI Group Companies under the Insolvency and Bankruptcy Code 2016.
Based on application filed by the Administrator, NCLT, vide Order
dated February 14, 2022, has directed consolidated insolvency
resolution process for SEFL and SIFL. Any further development in
this relation shall be closely monitored by CRISIL.
On account of continued weakness in the credit profile of the
servicer, rating on Series A pass-through certificates (PTCs)
issued by 'IIALRT-I Trust' remains at 'CRISIL B+ (SO) Issuer Not
Cooperating'. The rating continues on 'Rating Watch with Negative
Implications'.
The PTCs are backed by IT, Healthcare and Construction Equipment
rental receivables leased out by SREI Equipment Finance Limited
(SEFL) to corporate lessees. The transaction has a timely interest
and ultimate principal structure.
CRISIL Ratings' methodology for rating PTCs factors the credit risk
profile of the originator/servicer along with the expected
collection performance of the underlying pool. Linkage to servicer
is critical from two aspects: 1) Collections or recovery from
underlying contracts and 2) Bankruptcy-remoteness of cash
collateral. CRISIL Ratings has noted that there was a judicial
precedent on access to cash collateral for securitised pools in one
specific originator / servicer. Hence, CRISIL Ratings' believes
that weakening of the credit risk profile of the servicer reduces
the extent of de-linkage of securitised pool rating from the
servicer credit profile.
Key Rating Drivers & Detailed Description
Strengths:
* Credit quality of the obligors: The underlying lessees are of
good credit quality with most of the lessees estimated to have
credit quality equivalent to investment grade.
Weaknesses:
* Credit quality of the servicer/lessor: The lessees directly
deposit the lease rentals into the C&P account hence servicing risk
in this transaction is considerably lower than that in typical
securitisation transactions. However, servicing remains critical as
recoveries post default of any of the lessors will be dependent on
the ability of the servicer to effect roll-backs and settlements
with the defaulting parties.
* Heightened Fixed Deposit (FD) accessability risk: Trustee's
ability to access credit collateral by getting approval from SEFL
is a key monitorable.
* Borrower concentration: The pool is concentrated with top 5
lessees constituting the major proportion.
* Receivables are non-financial obligations of the obligors: The
lease rentals are operating obligations of the lessees and not
financial obligations. As per the lease agreements, the lease
obligations are non-cancellable, absolute and unconditional
obligations of the lessees, which provides comfort regarding the
lease repayments.
Liquidity: Poor
The company is under CIRP and the credit enhancement for the PTCs
is on books of the company with lien marked in favor of the Trust,
access to it remains a key monitorable.
Rating Sensitivity factors
Upward factors
* Trustee able to demonstrate access to cash collateral in a timely
manner.
Downward factors
* Inability of the Trustee to access cash collateral as set out
under transaction terms.
* Deterioration in pool performance.
About the Pool
The pool comprises rental receivables from construction, IT and
healthcare equipment leases originated by SEFL.
About the Originator
SEFL is registered with RBI as a non-deposit taking NBFC
(Category-Asset Finance) and provides financial products and
services to a wide spectrum of assets such as construction and
mining equipment, information technology equipment and solutions,
healthcare equipment and farm equipment. It is a wholly owned
subsidiary of Srei Infrastructure Finance Limited (SIFL).
SEFL was a 50:50 joint venture between SIFL, India's only private
sector infrastructure finance company; and BNP Paribas Lease Group
(BPLG), one of the largest leasing groups in Europe. Pursuant to
share purchase agreement dated December 29, 2015, executed between
SIFL, BPLG, SEFL, SREI Growth Trust, Mr. Hemant Kanoria, and Mr.
Sunil Kanoria, BPLG agreed (i) to acquire 2,51,54,317 equity shares
of SIFL representing 5% of total paid up equity share capital and
(ii) in lieu thereof, sell its entire shareholding of 2,98,30,000
equity shares in SEFL representing 50% of the total paid-up equity
share capital to SIFL in accordance with applicable laws. The
transaction was completed on June 17, 2016, when SEFL became a
wholly owned subsidiary of SIFL.
STARTSMART LABS: Voluntary Liquidation Process Case Summary
-----------------------------------------------------------
Debtor: Startsmart Labs India Private Limited
Module 01L, First Floor IIT
Madras Research Park
Kanagam Road, Taramani
Chennai TN 600113
IN
Liquidation Commencement Date: October 4, 2022
Court: National Company Law Tribunal, Mumbai Bench
Insolvency professional: Mr. Vimal Kumar Agrawal
Interim Resolution
Professional: Mr. Vimal Kumar Agrawal
Office No. 4, Ground Floor C Wing
Shanti Jyot Building
Balaji Nagar, Near Railway Station
Bhayander West, Thane 401101
E-mail: cirp.startsmartlabs@gmail.com
vimal@vpagrawal.in
Last date for
submission of claims: November 3, 2022
SUBHLABH STEELS: Liquidation Process Case Summary
-------------------------------------------------
Debtor: Subhlabh Steels Private Limited
1, British India Street
Room-202, Kolkata 700069
West Bengal
Liquidation Commencement Date: September 6, 2022
Court: National Company Law Tribunal, Kolkata Bench Court-II
Date of closure of
insolvency resolution process: May 4, 2022
Insolvency professional: Mr. Uttam Tekriwal
Interim Resolution
Professional: Mr. Uttam Tekriwal
35, Dhakuria Station Road
Kolkata 700031
E-mail: ip.uttamtekriwal@gmail.com
- and -
11C, Ram Mohan Dutta Road
Kolkata 700020
E-mail: liquidator.subhlabh@gmail.com
Last date for
submission of claims: October 5, 2022
SUN GREEN: Voluntary Liquidation Process Case Summary
-----------------------------------------------------
Debtor: Sun Green Trading and Services Private Limited
48/4, ECR Road
Opp. Nainar Kuppam Bus Stand
Uthandi, Chennai
TN 600119
IN
Liquidation Commencement Date: October 10, 2022
Court: National Company Law Tribunal, Chennai Bench
Insolvency professional: Mr. T Ranganathan
Interim Resolution
Professional: Mr. T Ranganathan
Flat No. 12, Vasavi Rangasai Apartments
New No. 48, Car Street
Triplicane, Chennai 600005
E-mail: sgtsvl2022@gmail.com
Tel: +91-9962922241
Last date for
submission of claims: November 9, 2022
TRANSMISSION CORP: CRISIL Hikes Rating on INR2.0cr Bond to C
------------------------------------------------------------
CRISIL Ratings has upgraded its rating on INR2.0 crore Bond -
Series I/2008 (Option B) of Transmission Corporation of Andhra
Pradesh Ltd (APTRANSCO) to 'CRISIL C' from 'CRISIL D'. CRISIL
Ratings has reaffirmed its 'CRISIL D' rating on the INR159.20 crore
bond Series I/2006 (Option B) and INR133.30 crore bond Series
II/2006 (Option B) of APTRANSCO.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bond Series 2.0 CRISIL C (Upgraded from
I/2008 (Option B) 'CRISIL D')
Bond Series
I/2006 (Option B) 159.5 CRISIL D (Reaffirmed)
Bond Series
II/2006 (Option B) 133.3 CRISIL D (Reaffirmed)
CRISIL Ratings has also withdrawn its rating on the INR3.2 crore
Bond Series I/2008 (Option B) as the same was a partial prepayment
of principal on these bonds. The withdrawal is in line with CRISIL
Rating's withdrawal policy.
The upgrade factors in the track record of timely payment of term
loan instalments for the latest instalment, partial prepayment of
principal amount of INR3.2 crore, supported by strong position of
APTRANSCO and high revenue visibility because of regulated tariff.
These strengths are constrained by modest financial risk profile
marked by high financial leverage, rise in the receivable position
from Andhra Pradesh distribution companies (discoms),
non-completion of liability bifurcation, lack of invocation of
government guarantee by the trustee, and non-adherence to the
guaranteed T-structure.
The bond series (ISINs: INE947F09024 and INE947F09040) are being
serviced through fund allocations from Transmission Corporation of
Telangana Ltd (TSTRANSCO) to APTRANSCO, albeit with a delay.
Analytical Approach
CRISIL Ratings has considered the standalone business and
financials risk profiles of APTRANSCO.
Key Rating Drivers & Detailed Description
Strengths:
* Monopoly in intra-state power transmission business in Andhra
Pradesh: APTRANSCO enjoys a natural monopoly and transmits power
from both public and private generators to power distribution
utilities in Andhra Pradesh. This is likely to continue in the long
term, as the economies of power transmission do not favour multiple
networks in the same area. Also, as the designated state
transmission utility, it plans and coordinates the wheeling of
power and plays a crucial role in the state's economy because the
entire power available in the state flows through its network. The
Andhra Pradesh government should extend extensive support to
APTRANSCO when required, given the crucial role it plays in
supplying and managing operations of electricity in the state.
* Full recovery of cost under regulated tariff structure: APTRANSCO
operates under a well-developed regulatory framework. The line
availability of APTRANSCO is on 99.97% an average against the
regulatory benchmark of 99.50% for recovery of entire fixed costs.
The tariff is determined by Andhra Pradesh Electricity Regulatory
Commission (APERC) and enables APTRANSCO to recover expenses and
allows for return on capital employed based on network
availability, provided it meets the stipulated operating norms of
APERC. Also, APTRANSCO receives stable cash flow as revenue is
based on contracted demand by the customers and not the actual flow
of power.
Weakness:
* Instances of delays in debt servicing: The Bond series I/2008
(Option B) is being serviced by APTRANSCO using proceeds from the
Andhra Pradesh government. However, due to non-receipt of funds
from the state government for interest payment due on October 1,
2021, and due to internal procedural delays, the payment was
delayed and was subsequently done on October 05, 2021. However,
APTRANSCO was servicing this bond in a timely manner before it
defaulted and has since serviced the bond without any additional
defaults. For Bond series I/2006 (Option B) and Bond series II/2006
(Option B), the debt obligation is serviced by TSTRANSCO using
funds from the Telangana government. Once funds are received from
them, TSTRANSCO transfers the funds to APTRANSCO for servicing debt
obligation. However, there have been continued instances of delays
in servicing of interest and principal on these bonds.
* Continued lack of finality over division of liabilities: While
the assets and liabilities have been provisionally split between
APTRANSCO and TSTRANSCO and are met by the respective transmission
companies, the bifurcation is yet to be finalised by the central
government. Disputes persist over bifurcation of assets and
liabilities between the Andhra Pradesh and Telangana governments
over different state-owned entities. This will continue to impact
debt servicing for the rated bonds.
* Failure of designated payment structure: The ratings also factor
in the failure of the payment structure in the past and the
inability of the trustee to ensure adherence to the
trustee-administered structure (non-invocation of guarantee). The
timeline for funding the escrow account before the due date is also
not being adhered to by APTRANSCO.
* Modest financial risk profile: APTRANSCO's financial risk profile
remains modest on account of high gearing, weakening debt coverage
metrics and pending receivables from Andhra Pradesh discoms.
Adjusted gearing increased to 1.91 times as on March 31, 2021, from
1.51 times as on March 31, 2020. Further, interest coverage remains
constrained and stood at 2.42 times in fiscal 2021 as against 2.16
times in fiscal 2020 and 2.45 times in fiscal 2019. Receivables
rose to 254 days as on March 31, 2021, from 185 days as on March
31, 2020 and 96 days on March 31, 2019, due to increase in payments
outstanding from the state discoms.
Liquidity: Poor
Although APTRANSCO has adequate liquidity due to healthy cash
accrual further highlighted by partial prepayment of principal of
INR3.2 crore (thereby reducing the outstanding value of the Bond
series I/2008 [Option B] to INR2.0 crore), servicing of the rated
bonds are dependent on receipt of funds from Andhra Pradesh and
Telangana state governments, which have witnessed multiple delays
in payment for their respective bond series.
Rating Sensitivity Factors
Upward Factors
* Conclusion of bifurcation of liabilities between APTRANSCO and
TSTRANSCO, with no adverse impact
* Track record of adherence to the T-10 structure pertaining to the
rated bonds
Downward Factors
* Further delays in realisations from state discoms or government
beyond 180 days on sustained basis
* Large, debt-funded capital expenditure
APTRANSCO was incorporated in 1999 as a part of the first phase of
the power sector reforms in Andhra Pradesh. Till 2005, it was the
only buyer in erstwhile Andhra Pradesh and purchased power from
public and private power generators and sold to state discoms in
accordance with the power purchase agreement. Subsequently, in
accordance with the third transfer scheme notified by the
Government of Andhra Pradesh, APTRANSCO ceased power trading
activities and retained powers f controlling system operations of
transmission. APTRANSCO is designated as a state utility in Andhra
Pradesh after the bifurcation of the state.
VENKATA KRISHNA: CRISIL Assigns B+ Rating to INR3cr Cash Loan
-------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable/CRISIL A4'
ratings to the bank facilities of Sri Venkata Krishna Agro Food
Industries (SVKAFI).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 3 CRISIL A4 (Assigned)
Cash Credit 3 CRISIL B+/Stable (Assigned)
Proposed Fund-
Based Bank Limits 2 CRISIL B+/Stable (Assigned)
The rating reflects SVKAFI's susceptibility to climatic conditions
and volatility in raw material prices, modest scale of operation
and modest financial risk profile. These weaknesses are partially
offset by its extensive industry experience of the promoters and
moderate working capital cycle.
Key Rating Drivers & Detailed Description
Weaknesses:
* Susceptibility to climatic conditions and volatility in raw
material prices: The crop yield of agricultural commodities is
dependent on adequate and favorable climatic condition. Thus,
SVKAFI is exposed to the risk of limited availability of its key
raw material during unfavorable climatic condition. Also,
production may be impacted by pests or crop infection leading to
higher unpredictability in production and pricing of agri
commodities and derived products.
* Modest scale of operation and profitability: SVKAFI's business
profile is constrained by its scale of operations and profitability
in the intensely competitive agricultural processing industry. The
company has reported revenues of INR15.86 crore and profitability
of INR0.12 crore in fiscal 2022 and had reported about INR10.12
crore of revenues and INR0.08 crore of profits in fiscal 2021. The
improvement in scale of operations and profitability will remain a
key monitorable over the medium term.
* Modest financial risk profile: SVKAFI's capital structure is
leveraged as reflected by the gearing of 2.03 times as on March 31,
2022. This can be partly attributable to the modest net worth of
INR1.68 crore and external borrowings of INR3.4 crore as on March
31, 2022. The debt protection metrics are also average as reflected
by the interest coverage and net cash accruals to total debt ratio
of 1.33 times and 0.04 times, respectively in fiscal 2022. The
improvement in the financial risk profile will be a key monitorable
going forward.
Strengths:
* Extensive industry experience of the promoters: The promoters
have an experience of around a decade in agricultural processing
industry. This has given them an understanding of the dynamics of
the market and enabled them to establish relationships with
suppliers and customers.
* Moderate working capital cycle: Gross current assets were at
116-232 days over the three fiscals ended March 31, 2022. Its
moderate working capital management is reflected in its gross
current assets (GCA) of 116 days as on March 31, 2022, driven by 68
days of receivables and 52 days of inventory holding. It is
required to extend long credit period in line with the industry
standards. Majority of its sales are to the government, thereby
leading to moderate receivable days.
Liquidity: Stretched
Bank limit utilisation is moderate around 33 percent for the past
twelve months ended June 2022. Cash accruals are expected to be
over INR0.01-0.1 crore which are sufficient against nil term debt
obligation over the medium term. In addition, it will be act as
cushion to the liquidity of the firm. Current ratio is healthy at
1.47 times on March 31, 2022.
Outlook: Stable
CRISIL Ratings believe SVKAFI will continue to benefit from the
extensive experience of its promoter over the medium term.
Rating Sensitivity factors
Upward factors
* Sustained improvement in scale of operation by 40% and sustenance
of operating margin at over 3%, leading to higher cash accruals
* Improvement in financial risk profile
Downward factors
* Decline in scale of operations by over 20% or decline in
profitability to less than 2%, leading to lower cash accruals
* Stretch in the working capital cycle or any large debt-funded
capital expenditure weakening its financial and liquidity risk
profiles
SVKAFI was established in 2019. SVKAFI is owned & managed by Guduru
Taraka Venkata Naga Rama Chandra Rao, Addepalli Naga Venkata Aruna
Kumari, Venkata Koteswara Rao Addepalli and Vuppala Padma Lavanya
Vuppala Padma Lavanya. SVKAFI operates a rice mill. SVKAFI's
manufacturing facility is located in Singapuram Village, Kaikalur,
Krishna, Andhra Pradesh.
VIJAYGROUP HOUSING: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Vijaygroup Housing Private Limited
205, Marine Chambers
43, New Marine Lines
Mumbai MH 400020
Insolvency Commencement Date: October 3, 2022
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: April 1, 2023
Insolvency professional: Mr. Alok Kumar Murarka
Interim Resolution
Professional: Mr. Alok Kumar Murarka
B-503, Unique Estate
Beverly Park, Kanakia
Mira Road-East, Thane
Maharashtra 401107
E-mail: ipalok.murarka@gmail.com
cirp.vhpl@gmail.com
Classes of creditors: Homebuyers
Insolvency
Professionals
Representative of
Creditors in a class: Madan Bajarang Lal Vaishnawa
Anil Kashi Drolia
Suresh Chandra Jena
Last date for
submission of claims: October 17, 2022
VINN HEALTHCARE: CRISIL Moves B+ Debt Ratings to Not Cooperating
----------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Vinn
Healthcare Private Limited (VHPL) to 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 10 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Overdraft Facility 5 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Fund- 4 CRISIL B+/Stable (ISSUER NOT
Based Bank Limits COOPERATING; Rating Migrated)
Working Capital 1 CRISIL B+/Stable (ISSUER NOT
Term Loan COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with VHPL for
obtaining information through letters and emails dated September
21, 2022 and September 26, 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 VHPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VHPL
is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the rating on
bank facilities of VHPL to 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
Set up in 2013 by Mr Nagender Pampati and Ms Rekha Pampati, VHPL
operates a 250-bed hospital in Begumpet, Hyderabad. The hospital
specialises in neurology and orthopaedics.
YASH AGRO: CRISIL Lowers Ratings on INR5cr Cash Loan to D
---------------------------------------------------------
CRISIL Ratings has downgraded the ratings of Yash Agro Industries
(YAI) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B-/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B-/Stable ISSUER NOT
COOPERATING')
Term Loan 3.5 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B-/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with YAI for
obtaining information through letters and emails dated August 19,
2021 and October 6, 2021 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 YAI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on YAI
is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, CRISIL Ratings has
downgraded the ratings to 'CRISIL D Issuer Not Cooperating' from
'CRISIL B-/Stable Issuer Not Cooperating'. The account conduct is
irregular and currently classified as NPA as recognized from
bankers' feedback and clarity about the same from the management
that the firm is closed as of now and account conduct is NPA.
The firm is setting up the project to carry out cotton ginning,
pressing and oil extraction unit with an installed capacity of
around 800 quintal per day.
=================
I N D O N E S I A
=================
KAYU RAYA: Furniture Retailer Declares Bankruptcy
-------------------------------------------------
Tech in Asia reports that PT Kayu Raya Indonesia or Fabelio has
declared bankruptcy, announcing the move through local media. This
comes after a Jakarta commercial court reached a verdict on October
5.
"I declare the debtor [Fabelio] in a state of bankruptcy with all
the legal consequences," Gde Braga Abi Tamara, the startup's legal
curator, told Bisnis Indonesia.
On behalf of Fabelio, the curator will handle all of the company's
confiscated assets and then sell them to pay off debts, Tech in
Asia says.
According to Tech in Asia, the judge overseeing the case has
invited the firm's creditors to a series of meetings:
* First creditor meeting: October 17, 2022 at Pengadilan Niaga,
PN Jakpus
* Deadline to submit creditor's bills and tax bills: Nov. 14,
2022 at Kantor Pengurus, Gedung WTC 5 Jakarta
* Meeting for accounts receivable reconciliation or verify
claims for creditors and the tax office: Nov. 28, 2022 at
Pengadilan Niaga, PN Jakpus
According to Indonesia's 2004 PKPU law, bankruptcy is filed by the
aggrieved party against the company.
Tech in Asia relates that bankruptcy applicant PT Harta Djaya Karya
had previously submitted a request for a Suspension of Debt Payment
Obligations (PKPU) to the Commercial Court at the Central Jakarta
District Court on March 7, 2022. On October 5, the court decided to
grant all PKPU requests.
"PT Kayu Raya Indonesia is in a Temporary Debt Payment Obligation
Suspension (PKPUS) for 45 days from the date the a quo decision was
pronounced," the decision said.
By the end of 2021, Fabelio staff had reportedly gone unpaid for
months, Tech in Asia relates. A Change.org petition was created for
the startup's employees, demanding that the firm pay the salaries
owed. Rumors also surfaced that several employees were forced to
resign.
However, Fabelio CEO and co-founder Marshall Utoyo denied such
reports, saying there was "absolutely no coercion." As he told CNN
Indonesia last year, "The company is in a difficult position due to
the impact of Covid-19, and indeed there is a delay [in payments]
from new investors."
Fabelio is an Indonesian online furniture retailer that works with
local designers to manufacture unique furniture and home decor.
===============
M A L A Y S I A
===============
TH HEAVY: Seeking Supplementary Agreement to Complete OPVs
----------------------------------------------------------
The Edge Malaysia reports that TH Heavy Engineering Bhd (THHE) is
seeking financial support from the government, particularly the
home ministry, to complete the three offshore patrol vessels (OPV)
that it had been contracted to build for the Malaysian Maritime
Enforcement Agency (MMEA).
According to a source close to the company, THHE's ability to
deliver the first OPV by this year is highly dependent on financial
support from stakeholders and a decision by the home ministry to
grant an extension of time (EoT) along with a new physical delivery
date, under a new supplementary agreement, The Edge Malaysia
relays.
"THHE is currently in discussion with its client (MMEA/home
ministry) on how best to handle the challenges it faces," said the
source who has done work with THHE.
To recap, THHE received a non-binding letter of intent from the
government for the OPVs on July 27, 2016, The Edge Malaysia
recalls. On Oct. 27, 2016, THHE entered into a joint-venture
agreement with Destini Bhd to undertake the contract.
On Jan. 18, 2017, the JV company, THHE Destini Sdn Bhd, was awarded
the contract for the supply, delivery, testing and commissioning of
three OPVs, complete with fitting and accessories, for MMEA for a
total contract sum of MYR738.9 million. The contract tenure was 42
months.
In the financial year ended Dec. 31, 2016 (FY2016), THHE saw its
net loss widening to MYR365.84 million from MYR45.34 million in
FY2015, The Edge Malaysia discloses. Following the announcement of
the financial results, THHE fell into Practice Note 17 (PN17)
status. It was delisted on Sept. 5, 2022.
According to the report, the OPV contract was seen as a lifeline
from the government. However, THHE could not capitalise on it,
despite having a change in its largest shareholder from Lembaga
Tabung Haji to Minister of Finance (Incorporated).
"The OPV project is most certainly affected by THHE's financial
challenges. However, THHE is doing its utmost to complete the OPV
project," said the source.
On April 6, 2021, Destini announced that the government had
approved an EoT for the supply, delivery, testing and commissioning
of the OPVs for two years, from Aug. 23, 2020 to Aug 22, 2022. The
decision was communicated via a letter dated Nov. 17, 2020.
The delivery dates initially scheduled - Oct 22, 2021 for OPV 1,
April 22, 2022 for OPV 2 and Aug. 22, 2022 for OPV 3 - were
extended to Feb. 22, 2022, April 22, 2022 and Aug. 22, 2022
respectively, according to the announcement.
The launch of OPV 1 was targeted for the end of August 2021,
Destini announced. The oil and gas, marine and aircraft
maintenance, repair and overhaul contractor said that the progress
of OPV 1 had reached 89.5%.
It is not clear why it took almost five months for the contractor
to disclose the EoT.
Destini's involvement in the OPV project did not last long, despite
being the technical partner in the JV. Days after Destini's April 6
announcement, on April 21, 2021, both sides disclosed that THHE
would be acquiring the 51% it did not own in THHE Destini for a
cash consideration of MYR121,131.12.
Without Destini, the status of the OPVs is under question. The
delivery dates for the OPVs have passed, but none of the vessels
have been completed and delivered to MMEA.
About TH Heavy
TH Heavy Engineering Berhad is an investment holding company. The
Company is engaged in the provision of management services. The
Company is engaged in the fabrication of offshore steel structures
and the provision of other related offshore oil and gas engineering
services in Malaysia.
TH Heavy slipped into Practice Note 17 (PN17) status in April 2017
after the company's independent auditors expressed a disclaimer
opinion on its accounts for the financial year ended Dec. 31,
2016.
The company is currently formulating a regularisation plan that
includes a scheme that would demonstrate the company's ability to
generate adequate cashflow from operations.
=====================
N E W Z E A L A N D
=====================
BX TRADING: Creditors' Proofs of Debt Due on Nov. 9
---------------------------------------------------
Creditors of BX Trading Co Limited are required to file their
proofs of debt by Nov. 9, 2022, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Oct. 10, 2022.
The company's liquidators are:
Gareth Russel Hoole
Clive Robert Bish
Ecovis KGA Limited
PO Box 37223
Parnell
Auckland
CASHMORE HOLDINGS: Creditors' Proofs of Debt Due on Nov. 11
-----------------------------------------------------------
Creditors of Cashmore Holdings Limited, Magellan Mall Limited,
Magellan Quay Park Central Limited, and Quay Park Mall Limited are
required to file their proofs of debt by Nov. 11, 2022, to be
included in the dividend distribution.
The companies commenced wind-up proceedings on Oct. 7, 2022.
The companies' liquidators are:
Rachel Mason-Thomas
Philip Meltzer
Meltzer Mason
PO Box 6302
Victoria Street West
Auckland 1141
HILLSBOROUGH BUILDING: Creditors' Proofs of Debt Due on Nov. 17
---------------------------------------------------------------
Creditors of Hillsborough Building Limited, IT Recycle Limited and
Go4PC Limited are required to file their proofs of debt by Nov. 17,
2022, to be included in the dividend distribution.
Hillsborough Building Limited commenced wind-up proceedings on Oct.
7, 2022.
IT Recycle Limited and Go4PC Limited commenced wind-up proceedings
on Oct. 5, 2022.
The company's liquidators are:
Benjamin Francis
Simon Dalton
Gerry Rea Partners
PO Box 3015
Auckland
KIWI WINDOW: Khov Jones Appointed as Receivers
----------------------------------------------
Steven Khov and Kieran Jones of Khov Jones Limited on Oct. 13,
2022, were appointed as receivers of Kiwi Window Furnishings
Limited.
The receivers may be reached at:
Khov Jones Limited
PO Box 302261
North Harbour
Auckland 0751
SLD AGRICULTURE: Laing Insolvency Appointed as Liquidators
----------------------------------------------------------
Trevor Edwin Laing and Emma Margaret Laing of Laing Insolvency
Specialists on Sept. 30, 2022, were appointed as liquidators of SLD
Agriculture Limited.
The liquidators may be reached at:
Laing Insolvency Specialists Limited
PO Box 2468
Dunedin 9044
=================
S I N G A P O R E
=================
CHOICEHOMES INVESTMENTS: Members' Final Meeting Set for Nov. 14
---------------------------------------------------------------
Members of Choicehomes Investments Pte. Ltd will hold their final
meeting on Nov. 14, 2022, at 10:00 a.m., via Zoom.
At the meeting, Leow Quek Shiong, Gary Loh Weng Fatt, and Seah Roh
Lin, the company's liquidators, will give a report on the company's
wind-up proceedings and property disposal.
SMALLWORLD DEVELOPMENTS: Members' Final Meeting Set for Nov. 14
---------------------------------------------------------------
Members of Smallworld Developments Pte. Ltd. will hold their final
general meeting on Nov. 14, 2022, at 10:00 a.m., at 80 Robinson
Road, #02-00, in Singapore.
At the meeting, Lee Wei Hsiung, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
ZETTA JET: Former Managing Director Charged With Embezzlement
-------------------------------------------------------------
The Straits Times reports that a former managing director of failed
luxury jet operator Zetta Jet was on Oct. 12 charged in court with
embezzling more than SGD11 million from the company.
According to the report, Geoffrey Owen Cassidy faces 34 charges
including cheating, criminal breach of trust by misappropriation,
and using the benefits of criminal conduct.
According to a police statement on Oct. 12, the 34-year-old
Australian was a managing director at Zetta Jet between 2015 and
2017.
He was also a director at aircraft management and consulting
company Asia Aviation Company from 2009 to 2017.
He is said to have siphoned monies from Zetta Jet between 2016 and
2017, the report relates.
Many of his charges involve large sums of money, with one accusing
Mr. Cassidy of misappropriating over USD2.6 million (SGD3.74
million) from the company in September 2016.
He also allegedly abetted the finance manager of Zetta Jet to post
an entry of US$1.35 million in the company's financial records,
which falsely showed that Mr. Cassidy had made payment to a
consulting firm on the company's behalf, according to ST.
He is said to have used more than SGD1.4 million for
property-related expenditures.
ST relates that Mr. Cassidy also faces a cheating charge, and has
been accused of duping aircraft repair and servicing company AirLNG
into delivering more than US$400,000 on five occasions between
April 25, 2014 and May 27, 2015.
Former director of Zetta Jet, June Tang Kim Choo, was also charged
in court on Oct. 12 in relation to the case, ST notes.
She allegedly failed to use reasonable diligence in the discharge
of her duties, by authorising payments of more than SGD5 million
without checking whether they were for the company's purposes.
She held the post at the firm from 2015 to 2017.
Mr. Cassidy is out on SGD300,000 bail and will return to court in
November, the report says.
Zetta Jet operated for two years as one of the fastest growing
charter operators in the Asia-Pacific region before going bankrupt
in late 2017.
Its collapse came amid charges of corruption and mismanagement that
raised questions about its services, adds ST.
===============
X X X X X X X X
===============
[*] China Property, Russia Drive Emerging Market Q3 Corp. Defaults
------------------------------------------------------------------
Reuters reports that defaults among emerging market companies
continued to pile up in the third quarter due to troubles in Russia
as well as China's property sector, with the volume of bonds
trading at distressed levels close to record highs, JPMorgan said
on Oct. 11.
The year-to-date default rate for emerging market high-yield firms
reached 10.3%, the bank found in its latest default monitor,
Reuters relays. This was driven by Russian defaults lifting the
rate in emerging Europe to 21.7%, while China's property sector
woes saw the default rate across Asia run to 12.8%.
"Russian corporate default activity has been dominated by payment
delays and consent solicitations to either extend grace periods or
add alternative payment options, which led to inclusion of such
bonds in our default metrics," Alisa Meyers wrote in a note to
clients.
Russia's year-to-date default tally includes over $30 billion of
Russian corporate bonds, translating into a default rate of 34.5%,
Ms. Meyers added.
Excluding the troubled areas of China property, Russian and
Ukrainian issuers, emerging markets corporate default rate stood at
just 1.2%, with JPMorgan predicting that this could rise to 2% by
year-end, Reuters reports.
Reuters adds that the amount of emerging market corporate bonds
that currently trade at distressed levels of less than 70 cents on
the dollar remained close to record highs at $185 billion or nearly
a quarter of the high-yield segment of the asset class, more than
three times where it stood at the start of the year.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2022. All rights reserved. ISSN: 1520-9482.
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