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T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, October 26, 2022, Vol. 25, No. 208
Headlines
A U S T R A L I A
ABCON CONCRETE: Second Creditors' Meeting Set for Oct. 28
AFG 2020-1NC: S&P Affirms BB+ (sf) Rating on Class E Notes
ENVIRO SAND: Second Creditors' Meeting Set for Oct. 27
GIN BROTHERS: Gin Producer Enters Liquidation
JUST KITS: First Creditors' Meeting Set for Oct. 31
NEPTUNE SEAFOOD: Second Creditors' Meeting Set for Oct. 28
PEPPER RESIDENTIAL NO. 25: S&P Affirms BB(sf) Rating on Cl F Notes
PROBUILD CONSTRUCTION: Small Creditors Spared a Total Wipeout
WWOL AUSTRALIA: First Creditors' Meeting Set for Oct. 31
C H I N A
PUTIAN STATE-OWNED: Fitch Affirms BB+ LongTerm IDR, Outlook Stable
I N D I A
AEQUITAS EXPORTS: ICRA Lowers Rating on INR23cr ST Loan to D
AKR IMPEX: ICRA Lowers Rating on INR5.45cr Cash Loan to D
ANEESH AHMAD: ICRA Lowers Rating on INR3.0cr Term Loan to D
ARNAV TECHNOSOFT: ICRA Keeps B Debt Rating in Not Cooperating
ASB PROJECTS: ICRA Keeps B+ Debt Ratings in Not Cooperating
AUTO HI-TECH: ICRA Keeps B+ Debt Ratings in Not Cooperating
BHAGABATI BUILD: ICRA Keeps B Debt Ratings in Not Cooperating
BHAGYANAGAR STRIPS: ICRA Keeps B Debt Rating in Not Cooperating
DELHI WASTE: ICRA Keeps B+ Debt Ratings in Not Cooperating
GEEKAY STEEL: ICRA Keeps B+ Debt Rating in Not Cooperating
GEETHANJALI CONSTRUCTIONS: ICRA Keeps B+ Ratings in Not Cooperating
GILLCO CONSTRUCTION: ICRA Keeps B+ Debt Rating in Not Cooperating
INDO VACUUM: ICRA Keeps B Ratings in Not Cooperating Category
JAYALAKSHMI AUTOMOTIVES: ICRA Cuts Rating on INR109cr Loan to B+
KALRA OVERSEAS: ICRA Lowers Rating on INR14.22cr LT Loan to D
KGS SUGAR: ICRA Keeps D Debt Ratings in Not Cooperating Category
KRISHNA SHELTERS: ICRA Keeps D Debt Ratings in Not Cooperating
MAG INDIA: ICRA Keeps B+ Debt Ratings in Not Cooperating Category
MVP GROUP: ICRA Keeps D Debt Rating in Not Cooperating Category
N.D. GUPTA: ICRA Keeps B+ Debt Ratings in Not Cooperating
NEELSON CERAMIC: ICRA Keeps B+ Debt Ratings in Not Cooperating
P. DASARATHARAMA: ICRA Keeps B+ Debt Ratings in Not Cooperating
POPPYS KNITWEAR: ICRA Withdraws B+ Rating on INR102cr LT Loan
SB URBANSCAPES: ICRA Keeps B Debt Rating in Not Cooperating
SIDHI BINAYAK: ICRA Keeps B+ Debt Ratings in Not Cooperating
VACUUM PLANT: ICRA Withdraws B+ Rating on INR0.05cr LT Loan
VIJAY ENGINEERING: ICRA Keeps B Debt Ratings in Not Cooperating
WINFAB EQUIPMENTS: ICRA Keeps B+ Debt Ratings in Not Cooperating
J A P A N
TOSHIBA CORP: Valued at JPY2.4 Trillion by JIP in Takeover Bid
M A L A Y S I A
1MDB: High Court Allows Substituted Service on Jho Low's Sister
N E W Z E A L A N D
ADAM CAMPBELL: Court to Hear Wind-Up Petition on Oct. 31
BIG CATS: Court to Hear Wind-Up Petition on Nov. 7
FC1 LIMITED: Creditors' Proofs of Debt Due on Dec. 15
PORTALSPAN BUILDINGS: BDO Tauranga Appointed as Liquidators
SCRIB CONSTRUCTION: Creditors' Proofs of Debt Due on Nov. 23
P H I L I P P I N E S
RB OF GALIMUYOD: Creditors' Claims Deadline Set for Nov. 22
S I N G A P O R E
FARM N PANTRY: Final Meetings Set for Nov. 25
KITCHEN CULTURE: Deems Nov. 1 EGM to Remove Directors 'Invalid'
LIFTBOAT 1: Creditors' Final Meeting Set for Nov. 28
PROPZY SEA: Placed in Provisional Liquidation
V I E T N A M
PHAT DAT: Fitch Lowers LongTerm IDR to 'B-', Outlook Negative
- - - - -
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A U S T R A L I A
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ABCON CONCRETE: Second Creditors' Meeting Set for Oct. 28
---------------------------------------------------------
A second meeting of creditors in the proceedings of Abcon Concrete
Constructions Pty Ltd has been set for Oct. 28, 2022, at 2:30 p.m.
via virtual meeting technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Oct. 27, 2022, at 4:00 p.m.
Stephen Dixon of Hamilton Murphy Advisory was appointed as
administrator of the company on Sept. 21, 2022.
AFG 2020-1NC: S&P Affirms BB+ (sf) Rating on Class E Notes
----------------------------------------------------------
S&P Global Ratings raised its rating on one class of notes issued
by Perpetual Corporate Trust Ltd. as trustee for AFG 2020-1NC Trust
in respect of Series 2020-1NC. At the same time, S&P affirmed its
ratings on five classes of notes. The transaction is a
securitization of nonconforming and prime residential mortgages
originated by AFG Securities Pty Ltd. (AFG).
The raised rating reflects increasing credit support and a
declining expectation of losses as the pool loan-to-value ratio
decreases. As of Sept. 30, 2022, the pool has a balance of about
A$190 million and a pool factor of about 40%. The pool's
weighted-average loan-to-value ratio is 62% and weighted-average
seasoning is 39 months.
Since close, arrears have been favorable compared with the Standard
& Poor's Performance Index (SPIN) for nonconforming loans. However,
arrears have been trending up in recent months. As of Sept. 30,
2022, loans more than 30 days in arrears make up 2.36% of the pool,
of which 1.07% is more than 90 days in arrears. This is up from
1.32% of the pool as of June 30, 2022, of which no loans were more
than 90 days in arrears.
For the lower-rated note tranches, S&P has not raised its ratings
on the class D and class E notes to a level that models alone
support. This is due to moderating factors such as the increased
arrears in the pool in recent months and our expectation that
arrears will increase further as interest rates rise.
S&P believes the credit support is sufficient to withstand the
stresses we apply. This credit comprises note subordination for all
rated notes as well as mortgage insurance covering about 8% of the
loans in the portfolio. In addition, there is a retention mechanism
and an amortization mechanism under which a retention amount and an
amortization amount, respectively, are built from any excess
spread.
The various mechanisms to support liquidity within the
transactions, including an amortizing liquidity facility and
principal draws, are sufficient under our stress assumptions to
ensure timely payment of interest. Additionally, any excess spread
is trapped in a yield reserve.
S&P's ratings also reflect the availability of an extraordinary
expense reserve, funded at closing by AFG, to cover extraordinary
expenses. The reserve will be topped up via excess spread, if
drawn.
Rating Raised
AFG 2020-1NC Trust in respect of Series 2020-1NC
Class C: to AA- (sf) from A (sf)
Ratings Affirmed
AFG 2020-1NC Trust in respect of Series 2020-1NC
Class A1-L: AAA (sf)
Class A2: AAA (sf)
Class B: AA (sf)
Class D: BBB+ (sf)
Class E: BB+ (sf)
ENVIRO SAND: Second Creditors' Meeting Set for Oct. 27
------------------------------------------------------
A second meeting of creditors in the proceedings of Enviro Sand Pty
Ltd has been set for Oct. 27, 2022, at 11:00 a.m. via Microsoft
Team meeting.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Oct. 26, 2022, at 4:00 p.m.
Stephen Earel and Daniel Juratowitch of Cor Cordis were appointed
as administrators of the company on Sept. 21, 2022.
GIN BROTHERS: Gin Producer Enters Liquidation
---------------------------------------------
The Australian reports that a gin company financially backed by
Shane Warne has entered liquidation, with the Perth-based
distillery partially attributing its demise to the cricket legend's
shock death earlier this year.
Gin Brothers, trading as SevenZeroEight, a tribute to Mr. Warne's
haul of Test wickets, was placed into administration from
accounting firm RSM last month, with the company owing about
AUD1.75 million to 21 unsecured creditors, according to reports.
SevenZeroEight, which stopped distilling after Mr. Warne's death in
Thailand in March, is understood to have had about AUD945,000 worth
of gin on hand when administrators were called.
Mr. Warne owned one-third of the business, according to reports,
and used his wide social media reach and popularity to advertise
the brand.
The company told administrators that Mr. Warne's death caused it to
suffer a substantial financial blow, The Australian relays.
According to The Australian, directors unsuccessfully sought to
sell the company in July and called in administrators when they
failed to meet a AUD30,800 debt owed to juice and spring water
company BevCo.
Mr. Warne died suddenly of a suspected heart attack on Thailand's
Ko Samui island.
He was awarded a state funeral at the MCG that was attended by more
than 50,000 people and watched by more than 1.5 million.
JUST KITS: First Creditors' Meeting Set for Oct. 31
---------------------------------------------------
A first meeting of the creditors in the proceedings of Just Kits
Pty Ltd will be held on Oct. 31, 2022, at 11:00 a.m. via virtual
meeting technology.
Dane Hammond of Worrells was appointed as administrator of the
company on Oct. 19, 2022.
NEPTUNE SEAFOOD: Second Creditors' Meeting Set for Oct. 28
----------------------------------------------------------
A second meeting of creditors in the proceedings of Neptune Seafood
Aus Pty Ltd has been set for Oct. 28, 2022, at 11:00 a.m. via
teleconference.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Oct. 27, 2022, at 4:00 p.m.
Daniel Lopresti of Clifton Hall was appointed as administrator of
the company on Sept. 21, 2022.
PEPPER RESIDENTIAL NO. 25: S&P Affirms BB(sf) Rating on Cl F Notes
------------------------------------------------------------------
S&P Global Ratings raised its ratings on six classes of
nonconforming RMBS notes issued by Permanent Custodians Ltd. as
trustee of Pepper Residential Securities Trust No.23 (PRS23),
Pepper Residential Securities Trust No.24 (PRS24), and Pepper
Residential Securities Trust No.25. (PRS25) At the same time, S&P
affirmed its ratings on 19 classes of notes issued out of the same
trusts.
The PRS23 and PRS24 class F notes have repaid in full.
The rating actions reflect S&P's view of the credit risk of the
underlying collateral portfolios. The asset pools have continued to
amortize and have pool factors of around 28% for PRS23, 28.7% for
PRS24, and 32.5% for PRS25 as of Aug. 31, 2022.
The strength of the cash flows at each respective rating level is
underpinned by the various structural mechanisms in the
transactions. Cash flows can meet timely payment of interest and
ultimate payment of principal to the noteholders under the rating
stresses.
S&P said, "We have also factored into our analysis the arrears
performance, the relatively high level of self-employed borrowers
and investment loans in the pool, and the outlook for arrears as
interest rates rise. These characteristics increase our expectation
of loss for the portfolio." The arrears performance generally has
been higher relative to the Standard & Poor's Performance Index
(SPIN) for nonconforming loans in the past six months. As of Aug.
31, 2022, loans greater than 30 days in arrears represent 7.12% for
PRS23, of which 3.24% is more than 90 days in arrears; 5.30% for
PRS24, of which 1.84% is more than 90 days in arrears; and 3.56%
for PRS25, of which 0.70% is more than 90 days in arrears. There
have been no charge-offs to any of the notes.
The transactions' cash flows support the timely payment of interest
and ultimate payment of principal to the noteholders under S&P's
rating stress assumptions.
For all transactions, under the pro rata payment structure, the
class G notes' allocated principal is paid to the class F notes
until the class F notes are fully repaid, followed by the remaining
subordinated notes once the class F notes have fully repaid.
Therefore, the class F notes will continue to benefit from an
increase in the percentage of credit support provided as the pool
amortizes under a pro rata structure, while for the remaining rated
notes the percentage of credit support will remain static. All the
transactions have met their pro-rata triggers and are currently
paying pro-rata.
The turbo repayment of the class F notes, being the most
subordinated rated notes, has created overcollateralization, which
provides additional credit support for the rated tranches in both
transactions.
A constraining factor on the degree of upgrades is the composition
of the portfolio and the subset of borrowers who are likely to be
more susceptible to changes in the economy, particularly rising
interest rates and cost-of-living pressures.
These qualitative factors constrain our ratings beyond quantitative
factors alone.
Ratings Raised
Pepper Residential Securities Trust No.23
Class C: to AA- (sf) from A+ (sf)
Class D: to A- (sf) from BBB+ (sf)
Pepper Residential Securities Trust No.24
Class C: to AA- (sf) from A+ (sf)
Class D: to A (sf) from A- (sf)
Pepper Residential Securities Trust No.25
Class C: to AA- (sf) from A+ (sf)
Class D: to A- (sf) from BBB+ (sf)
Ratings Affirmed
Pepper Residential Securities Trust No.23
Class A1-u: AAA (sf)
Class A1-a: AAA (sf)
Class A1-GE: AAA (sf)
Class A2: AAA (sf)
Class B: AA+ (sf)
Class E: BBB (sf)
Pepper Residential Securities Trust No.24
Class A1-u: AAA (sf)
Class A1-a: AAA (sf)
Class A1-GE: AAA (sf)
Class A2: AAA (sf)
Class B: AAA (sf)
Class E: BBB+ (sf)
Pepper Residential Securities Trust No.25
Class A1-u: AAA (sf)
Class A1-a: AAA (sf)
Class A1-GE: AAA (sf)
Class A2: AAA (sf)
Class B: AAA (sf)
Class E: BBB (sf)
Class F: BB (sf)
Ratings Discontinued
Pepper Residential Securities Trust No.23
Class F: to NR from BB+ (sf)
Pepper Residential Securities Trust No.24
Class F: to NR from BB+ (sf)
PROBUILD CONSTRUCTION: Small Creditors Spared a Total Wipeout
-------------------------------------------------------------
Business News Australia reports that small creditors of Probuild
have been spared financial pain from the collapse of one of
Australia's largest construction groups after receiving a total of
AUD1.8 million from administrators - a payout representing 100
cents in the dollar for the debts they were owed.
According to BNA, the administrators of the Probuild, WBHOI and
Monaco Hickey Group of companies Oct. 24 revealed that all
creditors with debts of AUD25,000 or less have been paid in full
after the building giant was placed into administration in February
this year with debts of more than AUD617 million.
The sale of assets following the collapse, including Probuild's
Victorian business, reduced the overall debt by AUD270 million as
the company entered into a deed of company arrangement (DOCA) with
creditors in June.
BNA relates that the administrators said the DOCA helped save more
than 475 jobs and allowed work to continue on about AUD2 billion in
active and future projects under way by the group, BNA relays.
The payment to small creditors comes on the heels of the
distribution of more than AUD16 million to former employees on 30
September, accounting for all of their outstanding employee
entitlements.
"The payment to small creditors today represents a significant
milestone and underscores the value preserved for creditors by
maintaining major building projects on foot to save jobs and avoid
significant subcontractor collapse," BNA quotes Deloitte Turnaround
& Restructuring partner Jason Tracy as saying.
Mr. Tracy was appointed administrator of the Probuild group in
February along with colleagues Sal Algeri, Matt Donnelly and David
Orr.
According to BNA, Deloitte T&R's efforts in achieving the latest
payout were buoyed by agreements reached to sell most of Probuild's
Victorian assets to Roberts Co which occurred within a week of
being appointed administrators. The sale effectively stripped
AUD270 million of the debt ledger which Deloitte T&R says prevented
job losses and a wholesale collapse of downstream smaller
contractors.
"As administrators, our key objective at the outset was to maintain
the business operations and employment to the greatest extent
possible, Probuild being one of the few contractors in the industry
able to undertake large scale projects," BNA quotes Mr. Algeri as
saying.
"We recognised the value in the strong reputation and relationships
that the group had with many key stakeholders including the unions,
principles, and other key stakeholders.
"We worked closely with management to preserve those relationships
which enabled us to move quickly and keep projects 'live'.
"In a situation like this, you also only get one shot at saving the
business by finding the right buyer, so early engagement with
stakeholders and eventual novation of contracts to a new owner were
all highly critical to the outcome."
BNA relates that Mr. Orr said the Probuild collapse highlighted
some of the key structural issues confronting the building sector
in Australia.
"Notwithstanding the disruptions caused by COVID-19, key structural
issues in the sector revolve around fixed price contracting and
inappropriate risk sharing models," the report quotes Mr. Orr as
saying. "All too often the sector displays weak balance sheets
dependant on debt funding models that provide little or no
resilience for even a small proportion of 'bad' projects. And all
of this is compounded by labour and skills shortages and the
pressing need to reshape work culture, diversity, and inclusion
across the sector."
The Probuild group collapse was triggered after its South
African-based parent company Wilson Bayly Holmes - Ovcon Limited
(WBHO) pulled financial support, citing COVID-19 restrictions in
Australia as the catalyst for the businesses' demise. The move
directly impacted the group's Australian project management
businesses Probuild, Monaco Hickey and WBHO Infrastructure, along
with the group's multibillion-dollar project portfolio which
included 10 active developments in Victoria and three in NSW.
Probuild had a total of 2,300 creditors when it was placed into
administration and close to 800 employees.
About Probuild
Probuild Constructions Australia operates as a building contractor.
The Company focuses on commercial, educational and institutional,
industrial, residential, retail and entertainment, sport, and
leisure contractions.
On Feb. 23, 2022, David Orr, Sal Algeri, Jason Tracy and Matt
Donnelly of Deloitte were appointed as administrators of Probuild
Constructions (NSW) Pty Ltd and related entities, namely Probuild
Constructions (VIC) Pty Ltd; Probuild Constructions (WA) Pty Ltd;
Probuild Constructions (QLD) Pty Ltd; WBHO Australia Pty Ltd; WBHO
Construction Australia Pty Ltd; WBHO Infrastructure Pty Ltd; Carr
Civil Contracting Pty Ltd; Northcoast Holdings Pty Ltd; Probuild
Constructions (Aust) Pty Ltd; Probuild Civil Pty Ltd; PCA (QLD) Pty
Ltd; ACN 098 866 794 Pty Ltd; Contexx Holdings Pty Ltd; Contexx Pty
Ltd; Prodev Murphy Pty Ltd; Prodev Investments 4 Pty Ltd; and
Monaco Hickey Pty Ltd.
Probuild's parent company WBHO Australia Group is controlled by
South African-based Wilson Bayly Holmes-Ovcon Limited, but in
February 2022 withdrew financial support for the Australian
business, and administrators from Deloitte were appointed, The
Sydney Morning Herald said.
In a statement to the Johannesburg Stock Exchange, WBHO blamed the
collapse on factors including Covid-19 restrictions and a decision
by the Foreign Investment Review Board in January last year to
block the sale of the business to China's state-owned China State
Construction Engineering Corporation for a reported AUD300 million,
saying the Australian businesses "have not being able to complete
projects on time and not been able to recover variation and delay
claims," according to Guardian Australia.
WWOL AUSTRALIA: First Creditors' Meeting Set for Oct. 31
--------------------------------------------------------
A first meeting of the creditors in the proceedings of WWOL
Australia Pty Ltd will be held on Oct. 31, 2022, at 11:00 a.m. via
virtual meeting technology.
David Michael Stimpson and Terry Grant van der Velde of SV Partners
were appointed as administrators of the company on Oct. 19, 2022.
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C H I N A
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PUTIAN STATE-OWNED: Fitch Affirms BB+ LongTerm IDR, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has affirmed China-based Putian State-Owned Assets
Investment Co., Ltd.'s (PTSI) Long-Term Foreign- and Local-Currency
Issuer Default Ratings (IDRs) at 'BB+'. The Outlook is Stable.
Fitch has also affirmed PTSI's USD265 million senior unsecured bond
due 2024 at 'BB+'.
Fitch deems PTSI as a government-related entity (GRE) and its
rating approach is based on its expectations of a high likelihood
of exceptional government support for the entity, if needed.
KEY RATING DRIVERS
'Very Strong' Status, Ownership and Control: Fitch's assessment is
based on Putian municipality's high level of control and full
ownership, despite PTSI's legal status under commercial law. PTSI
is a limited-liability company that is wholly owned by the Putian
State-owned Assets Supervision and Administration Commission
(SASAC), a sub-department of the city government. The Putian SASAC
has direct control and oversight of the company's board and
monitors strategic planning and finances. All major corporate
events require government approval.
'Strong' Support Record: PTSI has a solid government support record
as the city's major GRE to invest in primary land development and
urban infrastructure construction, as well as promote domestic
industries. PTSI receives recurring government capital and asset
injections, improving its financial stability and building up its
financing capacity. The rise in capital reserves contributed 55.7%
of the increase in total assets from 2019 to 2021. However, the
level of financial support fluctuates with the local government's
financial capability as well as the type of projects the entity
carries out.
'Moderate' Socio-Political Implications of Default: Fitch believes
that PTSI plays a key role in promoting Putian's urban development.
A default could therefore disrupt the city's economic development.
The 'Moderate' socio-political implications of a default by PTSI
mainly takes into consideration the availability of substitutes for
PTSI because Putian has more than one GRE, although there may be
some economic implications.
'Strong' Financial Implications of Default: PTSI is one of the top
two GREs in Putian municipality by asset size, implying a default
could have a significant impact on the cost of financing for the
Putian government and other GREs. The entity has raised funding
from various financial institutions, giving the local government
sufficient incentive to ensure it has access to such facilities.
Standalone Credit Profile (SCP) of 'b': The issuer's SCP is
assessed based on ' Weaker' revenue defensibility, a 'Midrange'
operating risk assessment and 'Weaker' financial profile. The
assessment is constrained by PTSI's weak financial profile.
Revenue Defensibility: Fitch considers PTSI's revenue defensibility
as 'Weaker', given the 'Midrange' demand characteristics and
'Weaker' pricing characteristics. PTSI has diverse revenue sources
from primary land development, property development and trading.
However, PTSI has limited pricing flexibility on the primary land
development business. The weak price-adjustment power constrains
against a higher assessment of this attribute.
Operating Risk: Fitch sees its operating risk as 'Midrange',
supported by 'Midrange' operating costs and resource management, as
well as 'Neutral' capital planning. PTSI has well-identified cost
drivers and established relationships with suppliers. PTSI has
limited flexibility in varying the capex timing, as it is subject
to the government's plans. This is mitigated by the government's
strong support in relation to PTSI's projects.
Financial Profile: The 'Weaker' financial profile is due to PTSI's
high leverage - measured by net adjusted debt/EBITDA - of around
28x-50x during the past five years. Fitch expects net adjusted
debt/EBITDA during 2022-2026 to be around 40x-43x, driven by the
rising debt. Therefore, the company is reliant on the ability to
refinance its debt, although this is mitigated by its continued
access to funding.
DERIVATION SUMMARY
PTSI's IDRs were assessed under Fitch's Government-Related Entities
Rating Criteria. This reflects Putian municipality's full ownership
and strong control over PTSI as well as the support it provides to
the company. Fitch also factored in the socio-political and
financial implications for the government if PTSI were to default.
Fitch therefore believes the government will provide extraordinary
support to PTSI, if needed. PTSI's SCP is assessed under its Public
Sector, Revenue-Supported Entities Rating Criteria.
Debt Ratings
PTSI's USD265 million 4.7% bond due 2024 is directly issued by the
company and is rated at the same level as its Long-Term
Foreign-Currency IDR.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- An upgrade of Fitch's credit view on Putian municipality's
ability to provide subsidies, grants or other legitimate resources
allowed under China's policies and regulations would lead to
positive rating action;
- An increase in the incentive for Putian municipality to provide
support to PTSI, including stronger socio-political or financial
implications of a default by the company, or a stronger support
record and expectation may trigger positive rating action;
- An improvement in its SCP would be positive for the company's
ratings.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- A downgrade of Fitch's credit view on Putian municipality's
ability to provide subsidies, grants or other legitimate resources
allowed under China's policies and regulations would lead to
negative rating action;
- Weaker assessment of the socio-political and financial
implications of a default, a weaker support record or a dilution in
the government's shareholding may lead to negative rating action.
ISSUER PROFILE
PTSI, established in 2004, is a comprehensive state-owned
investment platform in Putian, a city on China's south-eastern
coast. PTSI is engaged mainly in primary land development, urban
infrastructure construction, railway and port investment, and the
promotion of investments in the industrial and financial sectors.
PTSI also has commodity trading and real-estate operations.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Entity/Debt Rating Prior
----------- ------ -----
Putian State-Owned
Assets Investment
Co., Ltd. LT IDR BB+ Affirmed BB+
LC LT IDR BB+ Affirmed BB+
senior unsecured LT BB+ Affirmed BB+
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I N D I A
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AEQUITAS EXPORTS: ICRA Lowers Rating on INR23cr ST Loan to D
------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Aequitas
Exports Private Limited (AEPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 6.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating downgraded from
Term Loan [ICRA]BB- (Stable) and continues
to remain under 'Issuer Not
Cooperating' category
Long-term– 1.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating downgraded from
Cash Credit [ICRA]BB- (Stable) and continues
to remain under 'Issuer Not
Cooperating' category
Short-term– 23.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating downgraded from
[ICRA]A4 and continues to remain
under 'Issuer Not Cooperating'
category
Rationale
The ratings downgrade of AEPL's bank lines factors in the delays in
its debt servicing obligations in recent months based on the banker
feedback. ICRA has also moved the ratings for the bank facilities
to the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING".
As part of its process and in accordance with its rating agreement
with Aequitas Exports Private Limited, ICRA has been trying to seek
information from the entity to monitor its performance, but despite
repeated requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, a rating view has been
taken on the entity based on the best available information.
Incorporated in 2010, Aequitas Exports Private Limited (AEPL) was
initially involved in trading (export) of polished granite slabs.
In FY2015, the company had backward integrated by setting up its
own plant for manufacturing of polished granite slabs and
countertops for export. The manufacturing plant was located at
APIIC-Building Products (BP) SEZ at Annangi Village, Maddipadu
Mandal, Prakasam district, Andhra Pradesh. The commercial operation
started on May 20, 2015 and the current capacity of the plant is
30,000 MT per annum.
AKR IMPEX: ICRA Lowers Rating on INR5.45cr Cash Loan to D
---------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of AKR
Impex Private Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 5.45 [ICRA]D ISSUER NOT COOPERATING;
Rating downgraded from
[ICRA]B(Stable) and continues to
remain under 'Issuer Not
Cooperating' category
Letter of Credit (4.00) [ICRA]D ISSUER NOT COOPERATING;
(sub limit) Rating downgraded from [ICRA]A4
and Continues to remain under
'Issuer Not Cooperating'
Category
Packing Credit (5.00) [ICRA]D ISSUER NOT COOPERATING;
(sub limit) Rating downgraded from [ICRA]A4
and Continues to remain under
'Issuer Not Cooperating'
Category
Bill discounting (5.00) [ICRA]D ISSUER NOT COOPERATING;
(sub limit) Rating downgraded from [ICRA]A4
and Continues to remain under
'Issuer Not Cooperating'
Category
Rationale
The rating downgrade reflects delays in debt servicing as mentioned
by lender on October 17, 2022. The rating is based on limited
information on the entity's performance since the time it was last
rated in March 2022. The lenders, investors and other market
participants are thus advised to exercise appropriate caution while
using this rating as the rating may not adequately reflect the
credit risk profile of the entity, despite the downgrade.
ICRA has been trying to seek information from the entity so as to
monitor its Further, ICRA has been sending repeated reminders to
the entity for payment of surveillance fee that became due, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
AKR Impex Private Limited was incorporated in 2006 by Mr
S.Kathiravan. The company is involved in the business of processing
and trading of various types of pulses and has two processing units
set up in Tondiarpet, Chennai. The company processes black gram,
green gram, toor dhal, yellow lentils etc. The process involves
dehusking the pulses, splitting and polishing. The company
purchases raw materials from domestic as well as international
markets and processes and sells it to the customers.
ANEESH AHMAD: ICRA Lowers Rating on INR3.0cr Term Loan to D
-----------------------------------------------------------
ICRA has downgraded the ratings on certain bank facilities of
Aneesh Ahmad Khan, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 3.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating downgraded from
Term Loan [ICRA]C+ (Stable) and continues
to remain under 'Issuer Not
Cooperating' category
Long Term/ 1.08 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term- COOPERATING; Rating downgraded
Unallocated from [ICRA]C+ (Stable)/[ICRA]A4
and continues to remain under
'Issuer Not Cooperating'
Category
Short-term– 3.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating downgraded from
Term Loan [ICRA]A4 continues to remain
under 'Issuer Not Cooperating'
category
Material event
The rating downgrade reflects Delay in Debt Repayment as mentioned
in the publicly available sources.
Impact of material event
The rating is based on limited information on the entity's
performance since the time it was last rated on September 24, 2021.
The lenders, investors and other market participants are thus
advised to exercise appropriate caution while using this rating as
the rating may not adequately reflect the credit risk profile of
the entity, despite the downgrade.
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
Aneesh Ahmad Khan was established in 1994 and is engaged in the
business of overburden removal, coal excavation and coal
transportation works. The firm was established by eight partners
belonging to the same family. The firm's operations are majorly
concentrated in coal mining areas of Madhya Pradesh, primarily in
the district of Chhindwara.
ARNAV TECHNOSOFT: ICRA Keeps B Debt Rating in Not Cooperating
-------------------------------------------------------------
ICRA has retained the Long-Term rating of Arnav Technosoft Private
Limited in the 'Issuer Not Cooperating' category. The rating is
denoted as [ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 15.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in 2007, ATPL is a real estate developer and is
executing its maiden project in Noida (Uttar Pradesh). The project
involves construction and leasing of a corporate office building in
Sector 16 A in Noida. ATPL is part of the SDS group which is
engaged into real estate construction spanning across group housing
projects, integrated townships, commercial space and IT park in
Noida and Greater Noida regions of Uttar Pradesh. The group is
headed by Mr. Deepak Bansal and Mrs. Anshul Bansal.
ASB PROJECTS: ICRA Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has retained the Long-Term rating of ASB Projects Limited in
the 'Issuer Not Cooperating' category. The rating is denoted as
[ICRA]B+ (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 12.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 2.50 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in 2005, ASB is a single asset company and is
currently managing the operations of a mall Ashok Cosmos Mall in
Agra (Uttar Pradesh). This mall became operational in 2010 and has
a coveredarea of 3.36 lakh sq ft. As on Mar 31, 2016, of the total
area of 336,404 sq ft, 90,592 sq ft of area pertaining to shopping
and office complexes has been leased to six tenants. The company is
a part of the Ashok Group of Agra, which is present in diversified
sectors spanning across auto dealerships, petroleum products
dealership and hire-purchase, finance and leasing business.
AUTO HI-TECH: ICRA Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has retained the Long-Term ratings of Auto Hi-tech private
limited in the 'Issuer Not Cooperating' category. The ratings are
denoted as [ICRA]B+ (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 17.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 2.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Auto Hi-Tech Private Limited (AHPL) is an authorised dealer of MSIL
and has a showroom and service centre in Kolkata. The company sells
vehicles and provides ancillary services that include vehicle
servicing and sale of spare parts and accessories. AHPL sells both
new cars and pre-owned cars. The company is also planning to open a
NEXA showroom in Kolkata.
BHAGABATI BUILD: ICRA Keeps B Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has retained the Long-Term and Short-Term ratings of Bhagabati
Build & Constructions Pvt. Ltd. in the 'Issuer Not Cooperating'
category. The ratings are denoted as [ICRA]B (Stable)/[ICRA]A4;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 7.35 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Short Term- 3.00 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in 2010, BBCPL has been promoted by Mr. Bibhuti Bhusan
Routray and Mr. Bichitrananda Routray. It is engaged in civil
construction, particularly road construction, in the state of
Odisha and is a registered super class contractor with PWD,
Odisha.
BHAGYANAGAR STRIPS: ICRA Keeps B Debt Rating in Not Cooperating
---------------------------------------------------------------
ICRA has retained the Long-Term ratings of Bhagyanagar Strips
Private Limited in the 'Issuer Not Cooperating' category. The
rating is denoted as [ICRA]B(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 15.00 [ICRA]B (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Bhagyanagar Strips Private Limited (BSPL) was incorporated in the
year 2002 by Ms. Rashmi Agarwal. The company was actively involved
in trading business till 2010, however the operations were
temporarily shut down till 2014. Subsequently, the company started
the trading of steel products including TOR Steel, flat, HR strips,
wire rods, angles, channels, beams, etc from 2017. These products
are majorly used in fabrication, cement, infrastructure and machine
manufacturing industry.
DELHI WASTE: ICRA Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------
ICRA has retained the Long-Term and Short-Term ratings of Delhi
Waste Management Limited in the 'Issuer Not Cooperating' category.
The ratings are denoted as [ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 4.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Short Term- 0.50 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in 2005, DWML is a subsidiary of Kolkata-based SPML
Infra Ltd. and its group companies. The company is engaged in
collection and transportation of MSW from the concession areas to
the sanitary landfill sites of South Delhi Municipal Corporation
and North Delhi Municipal Corporation. Additionally, DWML runs auto
tippers in the designated localities to collect waste from the
households and manages waste at the two international airports,
Delhi and Hyderabad. Apart from waste management, DWML earns
revenue from the advertisements sites located at the waste
collection points.
GEEKAY STEEL: ICRA Keeps B+ Debt Rating in Not Cooperating
----------------------------------------------------------
ICRA has retained the Long-Term ratings of Geekay Steel Corporation
in the 'Issuer Not Cooperating' category. The rating is denoted as
[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 15.00 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Geekay Steel Corporation (GSC) was founded in the year 2016 by Mr.
Gopal Kishan Agarwal as a sole proprietorship concern. The firm is
involved in the trading of steel products including iron rods,
flats, angles, scrap, etc. These products are majorly used in
fabrication, cement, infrastructure and machine manufacturing
industry.
GEETHANJALI CONSTRUCTIONS: ICRA Keeps B+ Ratings in Not Cooperating
-------------------------------------------------------------------
ICRA has retained the long term and short-term ratings for the bank
facilities of Sree Geethanjali Constructions in the 'Issuer Not
Cooperating' category. The ratings are denoted as "[ICRA]B+
(Stable)/ [ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 7.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 0.25 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Short Term- 8.75 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Sree Geenthanjali Constructions (SGC, the firm) commenced its
operations in 1993. It has been involved in the execution of
electrical turnkey projects, supply erection testing commissioning
and construction of sub-stations and transmission lines from
33/11kv to 220kv, majorly for lift irrigation and power projects.
SGC has primarily executed projects in Andhra Pradesh.
GILLCO CONSTRUCTION: ICRA Keeps B+ Debt Rating in Not Cooperating
-----------------------------------------------------------------
ICRA has retained the Long-Term rating of Gillco Construction
Private Limited in the 'Issuer Not Cooperating' category. The
rating is denoted as [ICRA]B+ (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 10.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Gillco Construction Private Limited (GDBL) was incorporated in 2015
and is involved in construction of real estate projects in the
Mohali region of Punjab. The company is closely held by the Gill
family based in Chandigarh, Punjab, with Mr. Tejpratap Singh Gill
as its Managing Director. The company is currently engaged into
execution of construction work for its group company – Gillco
Developers & Builder Pvt Ltd. projects of group housing and
residential floors in Sectors 115 and 127, Kharar.
INDO VACUUM: ICRA Keeps B Ratings in Not Cooperating Category
-------------------------------------------------------------
ICRA has retained the Long-Term and Short-Term ratings of Indo
Vacuum Technologies Private Limited in the 'Issuer Not Cooperating'
category. The ratings are denoted as [ICRA]B (Stable)/[ICRA]A4;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 2.20 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 1.50 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term/ 3.35 [ICRA]B(Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain
under issuer not cooperating
category
Short Term- 0.50 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in 2001, IVTPL is owned and managed by Gudi family and
is engaged in the manufacturing of a range of vacuum pumps in
Belgaum (Karnataka). The company was established as a 50:50 joint
venture with Woosung Vacuum Co Ltd, based out of South Korea;
however, in 2009 the promoter family bought the stake from the
Korean company. IVT is a subsidiary of its group concern- CMC
Commutators Private Limited (CMC) with latter holding 72% stake in
the former.
JAYALAKSHMI AUTOMOTIVES: ICRA Cuts Rating on INR109cr Loan to B+
----------------------------------------------------------------
ICRA has downgraded the long-term rating to [ICRA]B+(Stable) from
[ICRA]BB- (Stable), for the bank facilities of Sri Jayalakshmi
Automotives Private Limited (SJAPL). The rating has also been moved
to the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 108.86 [ICRA]B+ (Stable) ISSUER NOT
Fund-based- COOPERATING; Rating downgraded
Term loan from [ICRA]BB- (Stable);
rating moved to 'Issuer Not
Cooperating' category
Long Term- 109.00 [ICRA]B+ (Stable) ISSUER NOT
Fund-based- COOPERATING; Rating downgraded
Cash Credit from [ICRA]BB- (Stable);
rating moved to 'Issuer Not
Cooperating' category
Long Term- 17.14 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating downgraded
Limits from [ICRA]BB- (Stable);
rating moved to 'Issuer Not
Cooperating' category
Accordingly, the rating is now denoted as "[ICRA]B+(Stable) ISSUER
NOT COOPERATING". As part of its process and in accordance with its
rating agreement with SJAPL, ICRA has been sending repeated
reminders to the entity for information. However, despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite cooperation and in
line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated
November 1, 2016, the firm's rating has been moved to the "Issuer
Not Cooperating" category. The rating action has been taken in
accordance with ICRA's policy in respect of non-cooperation by a
rated entity available at www.icra.in.
Incorporated in 1998, SJAPL is a dealer of HMIL's passenger
vehicles. The company is the authorised dealer for Hyderabad,
Bangalore, Vizag and Rajahmundry regions. As on March 31, 2021,
SJAPL had 19 showrooms and workshops. SJAPL is a part of the
Lakshmi Group, which is involved in dealership business since 1989.
The Lakshmi Group had two-wheeler dealership till 1998 and ventured
into the four-wheeler dealership segment through SJAPL in the same
year.
KALRA OVERSEAS: ICRA Lowers Rating on INR14.22cr LT Loan to D
-------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Kalra
Overseas & Precision Engineering Limited (KOPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 14.22 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating downgraded from
Term Loan [ICRA]B+ (Stable) and continues
to remain under 'Issuer Not
Cooperating' category
Short-term– 3.60 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating downgraded from
[ICRA]A4 and continues to remain
under 'Issuer Not Cooperating'
category
Short-term– 0.30 [ICRA]D; ISSUER NOT
COOPERATING;
Non Fund based Rating downgraded from
[ICRA]A4 and continues to remain
under 'Issuer Not Cooperating'
category
Material event
The Corporate Insolvency of Kalra Overseas & Precision Engineering
Limited was ordered by National Company Law Tribunal. The public
announcement was issued by Insolvency and Bankruptcy Board of India
(IBBI) on October 10, 2022. The IBBI has mentioned April 8, 2023,
as the estimated date for closure of insolvency resolution
process.
Impact of material event
The rating is based on limited information on the entity's
performance since the time it was last rated on October 8, 2021.
The lenders, investors and other market participants are thus
advised to exercise appropriate caution while using this rating as
the rating may not adequately reflect the credit risk profile of
the entity, despite the downgrade.
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
After commencing operations as a merchant exporter of forged/ cast
machined components in 1998, Kalra Overseas & Precision Engineering
Limited (KOPL) established its own machining unit in 2004 and later
forayed into forging by acquiring (MFPL)'- in 2005. KOPL is a
supplier of machined components primarily to the auto industry and
supplies to OEMs and Tier I suppliers in the domestic as well as
export market. The company is promoted and managed by Mr. Hurssh
Kalra ably assisted by his wife Mrs. Tripti Kalra. KOPL has shifted
its operations along with that of MFPL under single unit at Shirwal
(Maharashtra), which has become operational since November 2014.
KGS SUGAR: ICRA Keeps D Debt Ratings in Not Cooperating Category
----------------------------------------------------------------
ICRA has retained the Long-Term and Short-Term ratings of KGS Sugar
& Infra Corporation Limited in the 'Issuer Not Cooperating'
category. The ratings are denoted as "[ICRA]D/[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 117.33 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term– 210.81 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term/ 69.86 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Unallocated remain under 'Issuer Not
Cooperating' Category
Short-term– 52.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
KGS is involved in the manufacturing of sugar and its allied
products. The company had set up a sugar plant with capacity of
4500 tonnes crush per day (TCD) which is forward integrated with a
co-generation unit of 14 MW. The company is also installing a sugar
refining unit of 400 tonnes per day (TPD). The manufacturing
facility of the company is located at Niphad in Nashik district of
Maharashtra.
KRISHNA SHELTERS: ICRA Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has retained the Long-Term and Short-Term rating of Sri
Krishna Shelters Private Limited in the 'Issuer Not Cooperating'
category. The ratings are denoted as [ICRA]D/[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 10.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Short-term 5.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Continues to remain under the
Others 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Sri Krishna Shelters Pvt. Ltd. (SKS) is a construction company,
based in Bangalore, promoted by Mr. Raghavendra. Sri Krishna
Shelters Pvt. Ltd. was started as a proprietorship concern named
Sri Krishna Builders & Developers in the year 1990. In 2003, it was
converted to a partnership concern with Mr. Raghavendra as Managing
partner and Mrs. Sri Lakshmi as partner in the name of Sri Krishna
Builders and Developers. In 2007 it was converted to a private
limited company, Sri Krishna Shelters Pvt. Ltd., with Mr.
Raghavendra as Managing Director and Mrs. Sri Lakshmi as Director.
Over the last two decades, the Company has undertaken and completed
many projects of diverse nature and concentrates on commercial
projects, such as industrial buildings, hospitals, IT buildings,
buildings for government organizations and for other major
institutions. Some of the clients include: ISRO, Karnataka State
Police Housing Corporation limited, Mysore, HAL (Hindustan
Aeronautics Limited), NIT Surathkal, TATA Elxsi Limited, LIC etc.
MAG INDIA: ICRA Keeps B+ Debt Ratings in Not Cooperating Category
-----------------------------------------------------------------
ICRA has retained the Long-Term and Short-Term ratings of MAG India
Industrial Automation Systems Private Limited in the 'Issuer Not
Cooperating' category. The ratings are denoted as
[ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 20.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Unallocated to remain under 'Issuer Not
Cooperating' category
Short Term- 5.00 [ICRA]A4 ISSUER NOT
Fund Based COOPERATING; Rating continues
Unallocated to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
MAG India was incorporated as a Private Limited company on 29th
December 2006, and belongs to the MAG Group of Companies currently
owned by Fair Friend Group. Its immediate holding company is M/s
FADAL Engineering (Mauritius) Limited, a company incorporated under
the Laws of Mauritius, and is a wholly owned subsidiary of MAG IAS
GmbH, Germany. and produces a range of fabrics including fashion
fabrics, garments, furnishings and made-ups. Another Group company,
Bharat Tissus Private Limited (BTPL), is also engaged in
manufacturing silk fabric and readymade garments (cotton, silks,
silk blends and other fabrics).
MVP GROUP: ICRA Keeps D Debt Rating in Not Cooperating Category
---------------------------------------------------------------
ICRA has retained the Long-Term rating of MVP Group International
Inc in the 'Issuer Not Cooperating' category. The rating is denoted
as [ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 641.60 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
MVP Group International, Inc. (MVP) is involved in the
manufacturing, import and distribution of scented candles. They
sell primarily to large, national retailers like Wal-Mart1, Dollar
General2 etc., and also (to a lesser extent) to small, local
retailers. The Company sells mostly to retailers throughout the
United States. MVP sells scented candles under two broad
categories, private label candles (85% of the annual sales) and
branded candles (15% of the annual sales). In addition, the Company
does contract manufacturing of candles for other national brand
owners. In FY18, the company has spun off its contract candle
manufacturing business to its former managers (Propes family); this
business had an annual turnover of around USD20 mn. In FY2018, the
company recorded an annual turnover of ~INR1152.4 crore (USD166.4
mn).
N.D. GUPTA: ICRA Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------
ICRA has retained the long term and short term ratings for the bank
facilities of N.D. Gupta & Sons in the 'Issuer Not Cooperating'
category. The ratings are denoted as "[ICRA]B+ (Stable)/[ICRA]A4;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 2.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Short Term- 4.00 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
N.D. Gupta & Sons was established in 1988 as a Partnership Firm by
Late Shri Narendra Dev Gupta & is engaged in civil Constructions &
road construction work mainly for IFFCO in Aonla, Bareilly, UP. The
primary raw materials used for construction and civil works are
cement, sand, TMT Bars, railway track fittings and structural steel
items comprising channels, plates, etc.
NEELSON CERAMIC: ICRA Keeps B+ Debt Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has retained the long term and short-term ratings for the bank
facilities of Neelson Ceramic Llp in the 'Issuer Not Cooperating'
category. The ratings are denoted as "[ICRA]B+ (Stable)/ [ICRA] A4;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 13.35 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 6.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Short Term- 1.80 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in May 2015, Neelson Ceramic LLP (NCL) is engaged in
manufacturing polished glazed vitrified tiles. The firm's
manufacturing facility is at Morbi, Gujarat, with an installed
production capacity of 45,000 MTPA of glazed vitrified tiles. NCL
currently manufactures vitrified tiles in sizes of 600" x 600" and
300" x 600". NC is in the process of increasing its installed
capacity to 67,500 MTPA and introducing a new tile dimension of
600" x 1,200". The firm is promoted by Shri Kalesh Makasana, Shri
Sanjay Makasana, Shri Ghanshyam, Smt. Maheshwari Makasana and Smt.
Reena Makasana. The promoters have experience of the ceramic
industry owing to their association with previous group concerns,
Neha Ceramic and Nehani Tiles Private Limited.
P. DASARATHARAMA: ICRA Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------------
ICRA has retained the Long-Term and Short-Term ratings of P.
Dasaratharama Reddy in the 'Issuer Not Cooperating' category. The
ratings are denoted as [ICRA]B+ (Stable)/[ICRA]A4; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 2.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Short Term- 8.00 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
P. Dasarathama Reddy is a partnership firm established in the year
1998 and is operating as a class I civil contractor mostly for
government departments in Karnataka. They are engaged in the
business of construction of canals, roads and bridges. At present
the firm is managed by three partners, namely Mr. Krishna Reddy,
Mr. Dinesh Reddy and Mrs. Bhavan.
POPPYS KNITWEAR: ICRA Withdraws B+ Rating on INR102cr LT Loan
-------------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Poppys Knitwear Private Limited at the request of the company and
based on the No Objection certificate (NOC) received from its
banker. However, ICRA does not have information to suggest that the
credit risk has changed since the time the rating was last
reviewed. The Key Rating Drivers, Liquidity Position, Rating
Sensitivities, Key financial indicators have not been captured as
the rated instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 102.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Withdrawn
Cash Credit
Short Term- 11.00 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Withdrawn
Others
Poppys Knitwear Private Limited (Poppys) is a garment exporter
based out of Tirupur, Tamil Nadu. Promoted by Mr. Sakthivel in
1973, Poppys is engaged in knitting, processing (dyeing),
garmenting (sewing), printing and embroidery of cotton garments.
Poppys has its manufacturing facilities located in and around the
thirupur belt (knitting, processing, 2 garmenting, and printing and
embroidery facilities). The company caters primarily to exports to
renowned brands/ marketers in the Europe and US market.
SB URBANSCAPES: ICRA Keeps B Debt Rating in Not Cooperating
-----------------------------------------------------------
ICRA has retained the Long-Term rating of SB Urbanscapes in the
'Issuer Not Cooperating' category. The rating is denoted as [ICRA]B
(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 20.00 [ICRA]B (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
M/s. Sb Urbanscapes (MV Vajra) is a partnership firm, promoted by
Mr. D. Rajagopal and family, to undertake real estate development
activities involving construction of residential apartments,
commercial complexes in various parts of Bangalore City & its
surroundings. The firm has several group companies like Sumukha
Infra, Sumukha Projects, Aashrayaa Infra, S B Properties, Elite
Projects, Aashrayaa Homes, Ambience Projects which have wide
ranging experience and exposure in civil engineering constructions,
real estate development, and many more business activities.
SIDHI BINAYAK: ICRA Keeps B+ Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has retained the long term and short-term ratings for the bank
facilities of Sidhi Binayak Infrastructure in the 'Issuer Not
Cooperating' category. The ratings are denoted as "[ICRA]B+
(Stable) /[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 10.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term/ 2.00 [ICRA]B+(Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Non-Fund Based Rating Continues to remain
under issuer not cooperating
category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Sidhi Binayak Infrastructure (SB) was formed as a partnership firm
in FY2017 for the construction of roads with Mr. Sunil Kumar
Mahapatra, Mr. Pramod Debta and Mr. Sagar Swarup Mahapatra as its
partners. Mr. Sunil Kumar Mahapatra was earlier involved in road
construction business through his proprietorship firm, Sunil Kumar
Mahapatra (SKM). In FY2018, SB took over the business of SKM, and
all the assets and liabilities of SKM were transferred to SB. The
firm plans to transfer its business to a private limited company in
the near term.
SB is empaneled as a Super Class contractor with the PWD,
Government of Odisha. The firm is involved mainly in improving and
widening of roads in western Odisha and executes contracts awarded
by the government departments like Roads and Buildings Department
and Rural Works Department of Odisha. Recently, the entity also
received orders for installation, electrification and commissioning
of borewells.
VACUUM PLANT: ICRA Withdraws B+ Rating on INR0.05cr LT Loan
-----------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Vacuum Plant And Instruments Manufacturing Company
Limited at the request of the company and based on the No Objection
certificate (NOC) received from its banker. However, ICRA does not
have information to suggest that the credit risk has changed since
the time the rating was last reviewed. The Key Rating Drivers,
Liquidity Position, Rating Sensitivities, Key financial indicators
have not been captured as the rated instruments are being
withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 0.05 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Withdrawn
Cash Credit
Short Term- 8.05 [ICRA]A4; ISSUER NOT
Non Fund Based- COOPERATING; Withdrawn
Others
Established in 1965, VPI manufactures products based on vacuum
technology. It designs, manufactures and supplies insulating oil
filtration plants, vacuum pressure impregnation plants, resin
casting plants, vacuum drying plants, SF6 gas processing plants and
other products. VPI markets these products primarily to transformer
manufacturers as well as power generation companies and electricity
distribution companies. It also has a technical collaboration with
Hedrich, Germany for manufacturing and installation of vapour phase
drying plants.
In FY2018, the company reported a net profit of INR1.29 crore on an
OI of INR24.81 crore compared to a net profit of INR1.77 crore on
an OI of INR30.34 crore in the previous year. As per provisional
financials for FY2019, VPI reported a net profit of INR2.82 crore
on an OI of INR29.34 crore.
VIJAY ENGINEERING: ICRA Keeps B Debt Ratings in Not Cooperating
---------------------------------------------------------------
ICRA has retained the long-term rating of Vijay Engineering
Equipment India Pvt. Ltd in the 'Issuer Not Cooperating' category.
The rating is denoted as [ICRA]B(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 16.00 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 1.50 [ICRA]B (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
The company was incorporated as Vijay Engineering Equipment India
Private Limited (VEEIPL) on January 16, 2006. VEEIPL is an
authorized dealer of construction equipments of Volvo for Andhra
Pradesh and Telangana region; the dealership commenced from 2006
and is renewable on annual basis. The company deals in various
models of Volvo, including –excavators loaders, graders and other
machines. VEEIPL stocks full range of Volvo equipment and spares
and supports for efficient aftersales including the overhaul and
intermediate repair of major and minor assemblies. The company
operates through 5 workshops (Vishakapatnam, Karimnagar, Kadapa,
Warangal and Hyderabad) spread across the state to cater to the
after sales requirement and spares.
WINFAB EQUIPMENTS: ICRA Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------------
ICRA has retained the long-term and short-term ratings of Winfab
Equipments Pvt. Ltd. in the 'Issuer Not Cooperating' category. The
rating is denoted as [ICRA]B+(Stable)/[ICRA]A4 ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 4.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Short Term- 3.50 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Winfab Equipments Pvt. Ltd. (WEPL) was incorporated in 2000 and was
taken over by Mr. Ghanshyamdas Ladda in 2001. The company is
engaged in manufacturing of LPG cylinders and hot repair works of
the gas cylinders for OMCs on tender basis.WEPL currently has an
installed capacity to manufacture 2.8 lakh domestic cylinders
(14.20 kg) and commercial cylinders (19.50 kg) per year. Its major
customers are Oil Marketing Companies(OMCs) such as Indian Oil
Corporation Ltd ([ICRA]AAA (Stable)/[ICRA]A1+), Bharat Petroleum
Corporation Limited and Hindustan Petroleum Corporation Limited
([ICRA]AAA (Stable)/[ICRA]A1+). WEPL has its registered office and
manufacturing facility in Medchal, Telangana.
=========
J A P A N
=========
TOSHIBA CORP: Valued at JPY2.4 Trillion by JIP in Takeover Bid
--------------------------------------------------------------
Bloomberg News reports that a consortium led by Japan Industrial
Partners (JIP) is considering a takeover of Toshiba Corp. at a
valuation of about JPY2.4 trillion (US$16.1 billion) in what could
be Asia's biggest buyout this year, according to people familiar
with the matter.
Bloomberg relates that the JIP-led group, which is the preferred
bidder to take the industrial group private, plans to provide JPY1
trillion in cash while seeking financing totaling JPY1.4 trillion
from banks along with a committed line of credit of JPY200 billion
in working capital, said the people, who asked not to be identified
as the matter is private.
Toshiba, in its regular meeting with banks including Sumitomo
Mitsui Banking on Oct. 20, informed them that JIP is valuing the
company at around JPY2.4 trillion and asked them to give financing
support, the people said, Bloomberg relays.
Shares of Toshiba have risen about 17% this year, giving the
conglomerate a market value of about $15.7 billion. A bid at JPY2.4
trillion would be worth about JPY5,541 per share, similar to
Toshiba's closing price of JPY5,391 per share on Oct. 24 in Tokyo.
According to Bloomberg, JIP has yet to finalize the equity
commitments from its partners, while banks remain cautious about
making binding commitments, the people said. Both the consortium
led by JIP and a rival group led by state-backed investment fund
Japan Investment Corp. will find it hard to meet a Nov. 7 deadline
to line up commitment letters, Bloomberg News reported earlier.
Considerations are still ongoing and there's no certainty that
talks will lead to any transaction, the people said. Toshiba could
still decide to explore certain asset sales instead of a full sale
of the business, they said.
JIP is in talks to form a partnership with domestic companies
including Orix and Chubu Electric Power Co., as well as global
investment firms such as Baring Private Equity Asia and CVC Capital
Partners, Bloomberg News has reported. That coalition has made a
proposal that would keep Toshiba's current business structure
intact.
Investors including Bain Capital and MBK Partners have discussed
being involved in JIC's rival bid group, people familiar with the
matter have said.
About Toshiba Corp.
Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/--
manufactures and markets electrical and electronic products. The
Company's products include digital products such as PCs and
televisions, NAND flash memories, and system LSIs (large-scale
integrated), as well as social infrastructures such as power
generators, medical equipment, and home appliances.
As reported in the Troubled Company Reporter-Asia Pacific on April
1, 2022, S&P Global Ratings has affirmed its 'BB+' long-term issuer
credit rating and 'B' short-term issuer and issue credit ratings on
Toshiba Corp. S&P removed the long-term issuer credit rating from
CreditWatch with negative implications, on which S&P placed it on
Nov. 16, 2021. The outlook is negative.
===============
M A L A Y S I A
===============
1MDB: High Court Allows Substituted Service on Jho Low's Sister
---------------------------------------------------------------
Hafiz Yatim at theedgemarkets.com reports that the High Court on
Oct. 25 has allowed an appeal by 1Malaysia Development Bhd (1MDB)
and its four subsidiaries to use substituted service of court
documents on Low Taek Jho's sister Low May Lin, whose last address
is in Singapore.
On Oct. 20, High Court senior assistant registrar Haslinda A Raof
dismissed an application by 1MDB and its four subsidiaries, 1MDB
Energy Holdings Ltd, 1MDB Energy (Langat) Ltd, 1MDB Energy Ltd and
Global Diversified Investment Company Ltd, to utilise substituted
service of the the documents, resulting in an appeal on Oct. 25.
In proceedings conducted online on Oct. 25, judge Hayatul Akmal
Abdul Aziz allowed the plaintiff's application to utilise
substituted service.
This was confirmed by 1MDB's solicitors, Messrs Skrine, to
theedgemarkets.com.
Substituted service is an alternative way to serve court documents,
namely writs, statement of claim or cause papers, on a person who
is perceived to be evading service of the papers or cannot be
located, or has moved elsewhere.
Normally, this can be done via advertisements in newspapers apart
from the normal delivery of court papers by hand, the report
notes.
According to theedgemarkets.com, 1MDB and the four companies filed
the US$3.78 billion suit in May 2021 against May Lin, together with
her brother Taek Jho, or better known as Jho Low, as well as
another brother Low Taek Szen, their parents Tan Sri Larry Low Hock
Peng and Puan Sri Goh Gaik Ewe, and Jho Low's right-hand man and
relative Eric Tan Kim Loong.
The plaintiffs are seeking US$3.5 million from May Lin and Jho
Low.
Besides this, they are seeking US$1.43 billion in funds and assets
from Jho Low and Hock Peng, and have obtained a Mareva injunction
(asset-freezing order) and committal against the duo for not
abiding by the order, theedgemarkets.com relates.
In an amended statement of claim last July, the companies sought a
declaration that the fugitive businessman is a trustee of US$657.75
million, and that the amount, which was misappropriated from the
now-defunct state fund, be returned. The original writ stated the
amount as US$1.03 billion, without other details, before it was
amended to an initial US$660.75 million.
In addition, the fund is also seeking a declaration that Jho Low
and his father are trustees of US$327.75 million. In the original
writ, the amount was stated as US$328 million, before it was
amended to US$324.75 million, according to the report.
For Jho Low and May Lin, 1MDB wants a declaration that they are
both constructive trustees of US$3.5 million.
Two 1MDB subsidiaries - namely 1MDB Energy and 1MDB Energy (Langat)
- named Jho Low and Tan as joint trustees of a whopping US$1.09
billion.
Both 1MDB Energy and 1MDB Energy (Langat) are also seeking from Jho
Low, Tan and Goh the return of either US$1.695 million worth of
jewellery or a return of that sum, theedgemarkets.com relates.
theedgemarkets.com says Global Diversified Investment Company
further claimed that Jho Low, Tan and Hock Peng are constructive
trustees of a sum of US$629.602 million.
The company also claimed that Jho Low, Tan and Taek Szen are
constructive trustees of US$2 million. Additionally, the company
alleged that Jho Low, Tan, Hock Peng and Taek Szen are constructive
trustees of US$25.5 million.
theedgemarkets.com meanwhile reports that 1MDB Energy Holdings is
seeking a declaration that Jho Low and Tan are constructive
trustees of a sum of US$397.333 million. 1MDB and its subsidiaries
are also seeking general, aggravated, and punitive damages in
addition to the sums.
Jho Low is now controlling a business consulting firm via a company
incorporated in the British Virgin Islands, which has offices in
the iconic Shanghai World Financial Center, according to American
journalists Tom Wright and Bradley Hope.
Following Oct. 25's matter, the High Court also fixed Oct. 27 for
case management for law firm Messrs Valen, Oh and Partners to
discharge themselves from representing Goh, theedgemarkets.com
reports.
The firm had earlier discharged itself from representing Jho Low
and Hock Peng, after the plaintiffs obtained the Mareva injunction.
Last month, the firm indicated it would like to discharge itself
from representing Goh as well, theedgemarkets.com adds.
About 1MDB
Kuala Lumpur-based 1Malaysia Development Bhd (1MDB) is an insolvent
Malaysian strategic development company, wholly owned by the
Malaysian Minister of Finance. 1MDB was established in 2009 to
foster long-term economic development for the country by forging
global partnerships, particularly in energy, real estate, tourism,
and agribusiness.
The Company was founded shortly after Dato Sri Najib Razak became
Prime Minister of Malaysia in July 2009. Najib said the
establishment of 1MDB into a federal entity was to benefit a
majority of Malaysians.
1MDB is said to have raised billions of dollars in bonds, for
investment projects and joint ventures, between 2009 and 2013.
Among those projects are the Tun Razak Exchange, Tun Razak
Exchange's sister project Bandar Malaysia, and the acquisition of
three independent power producers.
The Company came into heavy scrutiny in 2015 for suspicious money
transactions and evidence pointing to money laundering, fraud and
theft. The corruption scandal in 1MDB has implicated high-level
officials, including Prime Minister Najib Razak, as wells as banks
and financial institutions around the world.
In 2016, the U.S. Department of Justice filed a lawsuit, alleging
that at least US$3.5 billion has been stolen from 1MDB. In
September 2020, the alleged amount stolen had been raised to US$4.5
billion and a Malaysian government report listed 1MDB's outstanding
debts to be US$7.8 billion.
Malaysia has been filing lawsuits over the years in an effort to
recover the missing billions of dollars. Among others, in May
2021, Malaysia filed 22 civil suits against entities and people
involved in the corruption scandal, including units of Deutsche
Bank and JP Morgan.
Malaysia said in September 2020 it has so far recovered about
US$3.24 billion in assets linked to the 1MDB matter. This amount
includes about US$600 million cash and assets returned by U.S.
authorities; about US$2.5 billion paid by Goldman Sachs as
settlement; as well as US$780 million in settlement amounts from
Malaysian banking group AmBank and audit firm Deloitte.
=====================
N E W Z E A L A N D
=====================
ADAM CAMPBELL: Court to Hear Wind-Up Petition on Oct. 31
--------------------------------------------------------
A petition to wind up the operations of Adam Campbell Building
Limited will be heard before the High Court at Greymouth on Oct.
31, 2022, at 11:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on July 12, 2022.
The Petitioner's solicitor is:
Gabrielle McGillivray
Inland Revenue, Legal Services
PO Box 1782
Christchurch 8140
BIG CATS: Court to Hear Wind-Up Petition on Nov. 7
--------------------------------------------------
A petition to wind up the operations of Big Cats Limited will be
heard before the High Court at Whangarei on Nov. 7, 2022, at 10:00
a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Aug. 4, 2022.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
FC1 LIMITED: Creditors' Proofs of Debt Due on Dec. 15
-----------------------------------------------------
Creditors of FC1 Limited are required to file their proofs of debt
by Dec. 15, 2022, to be included in the company's dividend
distribution.
The High Court at Dunedin appointed Lynda Smart and Geoff Brown of
Rodgers Reidy as liquidators on Oct. 20, 2022.
The company's liquidators are:
Lynda Smart
Geoff Brown
Rodgers Reidy
PO Box 39090
Harewood, Christchurch 8545
PORTALSPAN BUILDINGS: BDO Tauranga Appointed as Liquidators
-----------------------------------------------------------
Paul Thomas Manning and Kenneth Peter Brown of BDO Tauranga on Oct.
19, 2022, were appointed as liquidators of Portalspan Buildings
Limited.
The liquidators may be reached at:
BDO Tauranga Limited
Level 1, The Hub
525 Cameron Road
PO Box 15660
Tauranga 3144
SCRIB CONSTRUCTION: Creditors' Proofs of Debt Due on Nov. 23
------------------------------------------------------------
Creditors of Scrib Construction Limited are required to file their
proofs of debt by Nov. 23, 2022, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Oct. 17, 2022.
The company's liquidators are:
Victoria Toon
Corporate Restructuring Limited
PO Box 10100
Dominion Road
Auckland 1446
=====================
P H I L I P P I N E S
=====================
RB OF GALIMUYOD: Creditors' Claims Deadline Set for Nov. 22
-----------------------------------------------------------
Creditors of the closed Rural Bank of Galimuyod (Ilocos Sur), Inc.
have until Nov. 22, 2022, to file their claims against the bank's
assets.
Claims filed after said date shall be disallowed. Creditors refer
to any individual or entity with a valid claim against the assets
of the closed Rural Bank of Galimuyod (Ilocos Sur), Inc. and
include depositors with uninsured deposits that exceed the maximum
deposit insurance coverage (MDIC) of PHP500,000.
The Philippine Deposit Insurance Corporation (PDIC) said that
creditors may file their claims through any of the following:
1. Online through e-mail at galimuyod-pad@pdic.gov.ph;
2. Through mail addressed to the PDIC Public Assistance Department,
Ground Floor, PDIC Chino Bldg., 2228 Chino Roces Avenue, Makati
City 1231. Claims filed by mail must have a postmark date no later
than November 22, 2022; or
3. Personal filing at the PDIC Public Assistance Center located at
the 3rd Floor, SSS Bldg., 6782 Ayala Avenue corner V.A. Rufino St.,
Makati City, Monday to Friday, 8:00 AM to 5:00 PM. For visits to
the PAC, clients are highly encouraged to request for an
appointment, observe health protocols and present their vaccination
cards. Appointments may be requested through the Public Assistance
Hotline at (02) 8841-4141 or at Toll-Free number 1-800-1-888-7342
or 1-800-1-888-PDIC, by sending an e-mail request to
galimuyod-pad@pdic.gov.ph, or by sending a request through private
message at PDIC's official Facebook page at
www.facebook.com/OfficialPDIC.
The prescribed Claim Form against the assets of the closed bank may
be downloaded from the PDIC website at
http://www.pdic.gov.ph/files/Claim_Form_Against_Assets_of_Closed_Banks.pdf.
PDIC reminds creditors to transact only with authorized PDIC
personnel.
Claims filed after Nov. 22, 2022 shall be disallowed. PDIC, as
Receiver, shall notify creditors of denial of claims through mail.
Claims denied or disallowed by the PDIC may be filed with the
liquidation court within 60 days from receipt of final notice of
denial of claim or within 20 days from date of publication of the
Order setting the Petition for Assistance in the Liquidation
Proceeding for initial hearing, whichever is later.
In addition, PDIC said that depositors with account balances of
more than the MDIC of PHP500,000 who have already filed claims for
the insured portion of their deposits as of November 22, 2022 are
deemed to have filed their claims for the uninsured portion or the
amount in excess of the MDIC.
PDIC, as Receiver of closed banks, requires personal data from
creditors to be able to process their claims and protects these
data in compliance with the Data Privacy Act of 2012.
Rural Bank of Galimuyod (Ilocos Sur), Inc. was ordered closed by
virtue of Monetary Board Resolution No. 1312.B dated Sept. 8, 2022.
It is a single-unit rural bank located in Brgy. Poblacion,
Galimuyod, Ilocos Sur.
All requests and inquiries relating to Rural Bank of Galimuyod
(Ilocos Sur), Inc. shall be addressed to the PDIC Public Assistance
Department through e-mail at galimuyodpad@pdic.gov.ph, or through
telephone number (02) 8841-4141. Creditors outside Metro Manila may
call the PDIC Toll Free Hotline during office hours at
1-800-1-888-PDIC (7342).
Inquiries may also be sent as private message to the PDIC's
official Facebook page at www.facebook.com/OfficialPDIC.
=================
S I N G A P O R E
=================
FARM N PANTRY: Final Meetings Set for Nov. 25
---------------------------------------------
Members and creditors of Farm N Pantry Pte. Ltd. and Farm Fresh
Foods Pte. Ltd. will hold their final meetings on Nov. 25, 2022, at
10:00 a.m., and 10:30 a.m. via electronic means.
At the meeting, Hubert Jen Wei Chang of Quantuma (Singapore), the
appointed liquidator, will give a report on the companies' wind-up
proceedings and property disposal.
KITCHEN CULTURE: Deems Nov. 1 EGM to Remove Directors 'Invalid'
---------------------------------------------------------------
The Business Times reports that Kitchen Culture issued a press
statement Oct. 25 urging its shareholders not to attend a Nov. 1
extraordinary general meeting (EGM) as it said purported notices of
the meeting were "defective and therefore invalid".
BT relates that the group said it has consulted two law firms, and
has been advised that the notices had not been properly served to
shareholders. The EGM therefore should not, and will not, proceed
at 9:00 a.m. on Nov. 1 at Grand Copthorne Waterfront Hotel as
proposed by the requisitioners, it said.
"Any resolutions passed during any EGM convened on the basis of the
defective purported notices of EGM would be invalid," stated its
board, who also advised shareholders not to attend the said
meeting.
To recap, eight requisitioners including the group's largest
shareholder Ooway Group are seeking to remove five of the company's
six directors: executive director Lim Wee Li, as well as four
independent directors Ang Lian Kiat, William Teo, Peter Lim and Lau
Kay Heng. Lau is also vice-chairman of the group.
BT says the requisitioners collectively owned an aggregate of 21.71
per cent of Kitchen Culture's shares as at Oct. 14, when the group
first announced it received notices of the EGM.
A newspaper advertisement of the notice of EGM was placed by the
requisitioners on Oct. 16.
About Kitchen Culture
Based in Singapore, Kitchen Culture Holdings Ltd. --
https://www.khlmktg.com/ -- sells and distributes imported kitchen
systems, kitchen appliances, wardrobe systems, and household
furniture and accessories under the Kitchen Culture brand name. It
operates through Residential Projects, and Distribution and Retail
segments.
Kitchen Culture reported three consecutive net losses of SGD3.87
million, SGD4.77 million and SGD11.51 million for years ended June
30, 2019, 2020, and 2021, respectively.
LIFTBOAT 1: Creditors' Final Meeting Set for Nov. 28
----------------------------------------------------
Members and creditors of Liftboat 1 International Pte Ltd will hold
their final meeting on Nov. 28, 2022, at 10:30 a.m., via Zoom
tele-conference.
At the meeting, Lim Loo Khoon, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
PROPZY SEA: Placed in Provisional Liquidation
---------------------------------------------
Luke Anthony Furler and Hubert Jen Wei Chang of Quantuma
(Singapore) on Oct. 14, 2022, were appointed as provisional
liquidators of Propzy Sea Pte Ltd.
=============
V I E T N A M
=============
PHAT DAT: Fitch Lowers LongTerm IDR to 'B-', Outlook Negative
-------------------------------------------------------------
Fitch Ratings has downgraded Vietnam-based Phat Dat Real Estate
Development Corp's (PDR) Long-Term Issuer Default Rating (IDR) to
'B-', from 'B'. The Outlook is Negative.
The downgrade follows a drop in contracted sales and cash
collection amid a deteriorating economic environment and credit
tightening in the property sector. This has disproportionately
affected the company given its reliance on a single wholesale buyer
over the past few years. PDR aims to diversify its business across
several wholesale buyers in the next 12-18 months, but Fitch
believes the poor operating environment raises execution risks for
its strategy and could see its operating scale decline further.
The Negative Outlook reflects the uncertainty around PDR's ability
to execute its strategy in a timely manner without a further
weakening in its operating scale and a possible rise in liquidity
and refinancing risk.
KEY RATING DRIVERS
Wholesale Buyer Concentration: Fitch forecasts cash collection to
stay below VND4.0 trillion a year in 2022 and 2023 (2021: VND3.3
trillion). PDR retracted VND9.5 trillion of contracted sales in the
Astral City project that were made to a single wholesale buyer,
Danh Khoi, in 2020-2021 as Danh Khoi has rearranged to purchase the
uncompleted project from PDR at a lower cost. This demonstrated the
significant bargaining power of a single buyer, which PDR is
seeking to mitigate. PDR collected around VND1.5 trillion in cash
in 1H22 related to the sale, with the balance to be collected by
end-2022.
Fitch expects PDR to generate a similar gross profit from the
project in absolute terms following the bulk sale to Danh Khoi, as
it is no longer required to pay for construction or development
costs, which counterbalances the lower selling price. However,
Fitch believes an increased reliance on bulk sales of land and
undeveloped projects to wholesale buyers would weaken PDR's
business profile, since the execution of bulk sales is subject to
greater uncertainty and more volatile cash flow.
Execution Risk on Diversifying Buyers: Fitch expects contracted
sales to drop to around VND3.5 trillion in 2022, as Fitch thinks
the company will take time to contract with new wholesale buyers.
PDR also aims to cultivate a retail sales channel for its property
sales in Ho Chi Minh City. However, it still expects its wholesale
model to account for the majority of property sales in the medium
term.
Its forecasts do not include any new contracted sales in 2H22 given
the weak environment. The company is in discussions with two
wholesale buyers to sign a master agreement for a new project,
which Fitch expects to only come about in early 2023. PDR has not
signed any contracted sales on new projects, aside from the Astral
City bulk sale and VND25 billion on a small ongoing project, Nhon
Hoi.
Falling Demand: Fitch expects rising inflation and interest rates
to temper housing demand in the next 12-18 months. The State Bank
of Vietnam's measures to curb credit to the real estate sector will
exacerbate challenges, as it will slow mortgage-funded property
sales and developers' and wholesale buyers' liquidity. PDR's
contracted sales and cash collection depend on the financial
strength of wholesale buyers, as buyers underwrite the entire
project sale in return for a discounted selling price.
Cash Collection Lags Presales: Fitch measures PDR's operating scale
by using implied cash collection - measured as revenue from
property sales plus change in customer deposits plus change in
account receivables - rather than contracted sales. Cash collection
has significantly lagged the recognition of contracted sales, as
the sale is booked upon signing the wholesale agreement with the
buyer, while cash is collected in phases and in sync with the sale
of individual homes to end-customers.
Volatile FCF Stemming from Land Banking: Fitch said, "We forecast
volatile free cash flow (FCF), as we estimate the company will
spend VND1.0 trillion-3.0 trillion a year on land acquisitions over
the next three years, even as cash collection slows. We assume PDR
will defer some land payments and scale back acquisitions in light
of the tighter credit environment and deteriorating growth outlook.
However, it has limited ability to reduce annual landbank
investments to below VND1.0 trillion-1.5 trillion without damaging
presales over a two- to three-year horizon."
DERIVATION SUMMARY
PDR's rating can be compared with Vietnamese real-estate developer,
BIM Land Joint Stock Company (BIML, B/Stable), and Indonesian
property developers, PT Alam Sutera Realty Tbk (ASRI, B-/Stable)
and PT Lippo Karawaci TBK (LPKR, B-/Stable).
Fitch rates PDR one notch lower than BIML; BIML's cash collection
scale is more than double PDR's VND4 trillion a year, it has better
financial flexibility, since most of its landbank has been
pre-paid, and it has fewer financial obligations due in 2023.
PDR is rated at the same level as ASRI and LPKR. ASRI has a better
cash flow profile - it is able to generate neutral-to-positive FCF
after cutting capex and limiting land acquisitions in the last
couple of years to conserve cash. However, ASRI's rating is
constrained by refinancing risk, with a USD171 million bond and a
USD251 million bond maturing in 2024 and 2025, respectively.
Comparatively, PDR's business profile is weaker, with a reliance on
wholesale buyers to market its projects. PDR has around VND3.2
trillion (USD135 million) of loans and local bonds maturing over
the next 18 months, which Fitch thinks can be managed, given the
company was able to raise VND1 trillion in new loans in mid-2022
and expects to receive around VND2 trillion in cash by end-2022
from the bulk sale of Astral City.
LPKR's rating reflects its high debt and fixed-costs in relation to
its contracted sales scale and cash collection, which is likely to
keep FCF negative in the next 12-18 months. However, it has
comfortable liquidity, with a cash balance that is sufficient to
cover several years of negative FCF, while its nearest significant
debt maturity is in 2025.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer:
- Contracted sales of around VND3.4 trillion in 2022 and VND3.8
trillion in 2023 (2021: VND4.3 trillion);
- Cash collection from property sales of around VND4.0 trillion for
2022 and VND3.2 trillion in 2023;
- Land investments of around VND4.9 trillion spread across
2022-2023;
- EBITDA margin of 55% in 2022, normalising at around 27% in
2022-2023 (2021: 70%). This assumes PDR moves away from bulk sales
and back into the wholesale model;
- No cash dividends to common shareholders;
- Effective average interest rate of 12.3% in 2022, rising to 12.6%
in 2023 (2021: 9.8%).
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to a
revision of the Outlook to Stable:
- Not meeting the negative triggers for an extended period.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Significant weakening of liquidity;
- Sustained decline in annual cash collections compared with
Fitch's forecast.
LIQUIDITY AND DEBT STRUCTURE
Tight Liquidity: PDR had around VND600 billion of cash and cash
equivalents as of end-June 2021, with VND1.5 trillion of debt
maturing in the next 12 months. Fitch expects the company to meet
its financial obligations in the next 12 months via operating cash
flow and refinancing. PDR has raised around VND1 trillion in funds
via bank loans and loans from third-party individuals since May
2022, notwithstanding the credit tightening in the sector. Fitch
believes it will rely on external funding sources to make its
land-related payments of over VND3 trillion in 2023.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Entity/Debt Rating Prior
----------- ------ -----
Phat Dat Real Estate
Development Corp LT IDR B- Downgrade B
*********
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,
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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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