/raid1/www/Hosts/bankrupt/TCRAP_Public/221111.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, November 11, 2022, Vol. 25, No. 220
Headlines
A U S T R A L I A
ALLIED CREDIT 2019-1: Moody's Gives B2 Rating to AUD17.5MM F Notes
ANSON STREET: First Creditors' Meeting Set for Nov. 17
AUSGROUP LTD: In Advanced Talks for Sale of Certain Assets
AUSTRALIAN 5: Second Creditors' Meeting Set for Nov. 17
CRIMSON FRESH: First Creditors' Meeting Set for Nov. 16
JB ADVISORY: Second Creditors' Meeting Set for Nov. 17
MEG 52: First Creditors' Meeting Set for Nov. 17
VICTORY OFFICES: Falls Into Voluntary Administration
C H I N A
COUNTRY GARDEN: Fitch Lowers LongTerm IDRs to 'BB-', Outlook Neg.
COUNTRY GARDEN: Pulls Out of S&P Rating Following Downgrade
JIANGSU ZHONGNAN: Moody's Downgrades CFR to Ca, Outlook Negative
WENS FOODSTUFF: Fitch Affirms Foreign Currency IDR at 'BB+'
I N D I A
36GUNN MARRIAGE: Voluntary Liquidation Process Case Summary
ANKUR IRON: CRISIL Keeps D Debt Ratings in Not Cooperating
AXIOMATA ELEVATORS: Liquidation Process Case Summary
BAJRANG SALES: CRISIL Reaffirms B+ Rating on INR0.3cr LT Loan
BHAGYODAYA MOTORS: CRISIL Keeps D Debt Ratings in Not Cooperating
BIGZETTA SYSTEMS: Voluntary Liquidation Process Case Summary
BREMELS RUBBER: CRISIL Keeps D Debt Ratings in Not Cooperating
CONSTRUCTION CATALYSERS: CRISIL Moves D Ratings to Not Cooperating
DELTRONIX INDIA: Liquidation Process Case Summary
DEWA PROJECTS: CRISIL Keeps D Debt Ratings in Not Cooperating
DHANYA STEEL: CRISIL Keeps D Debt Rating in Not Cooperating
DIVYA JYOTI: CRISIL Keeps D Debt Ratings in Not Cooperating
ESHWARNATH CONSTRUCTIONS: CRISIL Keeps D Ratings in Not Cooperating
GAJANAN GANGAMAI: Liquidation Process Case Summary
GANNON DUNKERLEY: NCLT Disposes Insolvency Bid Against Firm
HARITHA FERTILISERS: CRISIL Keeps D Ratings to Not Cooperating
HIMACHAL PRADESH: BJP Pushes State on the Verge of Bankruptcy
INDFLUX7 TECHNOLOGY: Voluntary Liquidation Process Case Summary
JCBL LIMITED: CRISIL Keeps D Debt Ratings in Not Cooperating
JOYS STEEL: CRISIL Keeps D Debt Ratings in Not Cooperating
LUMENS INDIA: CRISIL Reaffirms B+ Rating on INR2.0cr Demand Loan
MAHESH INDUSTRIES: CRISIL Keeps D Debt Ratings in Not Cooperating
MAHESH TIMBER: CRISIL Keeps D Debt Ratings in Not Cooperating
MARIYA SHIP: CRISIL Reaffirms B+ Rating on INR4cr Cash Loan
MINI DIAMONDS: CRISIL Keeps D Debt Ratings in Not Cooperating
NASCENT COMMUNICATION: Liquidation Process Case Summary
NAVANIDHI ELECTRONICS: CRISIL Keeps D Ratings in Not Cooperating
NIKHIL FOOTWEARS: CRISIL Keeps D Debt Ratings in Not Cooperating
OMC POWER: CRISIL Raises Rating on INR30cr NCD to B+
PROFISOR SERVICES: Liquidation Process Case Summary
SEVENHILLS HEALTHCARE: CRISIL Keeps D Ratings in Not Cooperating
SIRSA BANSIVAT: CRISIL Keeps D Debt Ratings in Not Cooperating
SOHRAB TEXTILE: Liquidation Process Case Summary
SR FOILS: CRISIL Keeps D Debt Ratings in Not Cooperating Category
TEXRIO TEXTILES: Voluntary Liquidation Process Case Summary
TMR DEVELOPERS: CRISIL Keeps D Debt Rating in Not Cooperating
UBER TECHLABS: Voluntary Liquidation Process Case Summary
UNITED INDIA: Liquidation Process Case Summary
VARDHAN AGRO: CRISIL Moves D Debt Ratings to Not Cooperating
VISHWAKARMA AUTO: CRISIL Moves B+ Rating from Not Cooperating
VODAFONE IDEA: Clearing Bank Dues First to Avoid Bankruptcy
Y PANI AND COMPANY: Liquidation Process Case Summary
N E W Z E A L A N D
ALEXANDRA JAMES: Court to Hear Wind-Up Petition on Nov. 11
PROPELLOR PROPERTY: Creditors' Proofs of Debt Due on Dec. 16
SOCIAL GROUP: Court to Hear Wind-Up Petition on Nov. 18
STARBRIGHT CLEANING: Court to Hear Wind-Up Petition on Nov. 11
TROJAN RIGGING: Creditors' Proofs of Debt Due on Nov. 30
S I N G A P O R E
BASP INTERNATIONAL: Court Enters Wind-Up Order
CLYDESBUILT INVESTMENT: Placed in Provisional Liquidation
FUCOM CONSTRUCTION: Court to Hear Wind-Up Petition on Nov. 25
PADWELL PTE: Commences Wind-Up Proceedings
PIANIST STUDIO: Court to Hear Wind-Up Petition on Nov. 25
SINGAPORE: SICC Amends Rules on Cross-border Corporate Insolvency
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A U S T R A L I A
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ALLIED CREDIT 2019-1: Moody's Gives B2 Rating to AUD17.5MM F Notes
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Moody's Investors Service has assigned the following definitive
ratings to the notes issued by AMAL Trustees Pty Ltd as trustee of
Allied Credit Retail Trust 2019-1 in respect of the Allied Retail
Finance Warehouse Series ('warehouse series').
Issuer: AMAL Trustees Pty Ltd in its capacity as trustee of the
Allied Credit Retail Trust 2019-1 in respect of the Allied Retail
Finance Warehouse Series
AUD29 million Class A-X Notes, Assigned Aaa (sf)
AUD604.25 million Class A Notes, Assigned Aaa (sf)
AUD52 million Class B Notes, Assigned Aa2 (sf)
AUD37.25 million Class C Notes, Assigned A2 (sf)
AUD16.5 million Class D Notes, Assigned Baa2 (sf)
AUD38.25 million Class E Notes, Assigned Ba2 (sf)
AUD17.5 million Class F Notes, Assigned B2 (sf)
The AUD12 million Class G Notes and AUD50 million Subordinated
Notes are not rated by Moody's.
The warehouse series is a revolving cash securitisation of loans
backed by auto, motorcycle, marine and other assets by Allied
Credit Pty Ltd (Allied Credit, unrated). The pool consists of
consumer and commercial loans, with the latter limited to 30% of
the pool balance.
The loans in the warehouse series are primarily originated by
Allied Retail Finance Pty Ltd (ARF, unrated), or KMAF Pty Limited
(KMAF, unrated), both wholly owned subsidiaries of Allied Credit.
Receivables originated by a specific third party can be included as
well, subject to a limit of 10% of the pool. All receivables are
underwritten by Allied Credit. The receivables are serviced by ARF.
ARF and KMAF also act as sellers of the receivables in this
warehouse series.
Allied Credit, a privately owned company, was established in 2010
with a primary focus on financing motorcycle and marine consumer
loans. In 2019, Allied expanded into financing of auto loans.
Allied Credit's total loan book was around AUD1.9 billion as of
September 30, 2022.
Allied Credit's origination volumes of retail auto loans have grown
significantly over 2022, following its acquisition of the auto
dealer finance portfolio in December 2021 from Macquarie Leasing
Pty Limited (Macquarie Leasing), a wholly owned subsidiary of
Macquarie Bank Limited (A2/A2 positive).
RATINGS RATIONALE
The ratings take into account, among other factors, Moody's
evaluation of the underlying receivables and their expected
performance, the revolving nature of the underlying portfolio,
evaluation of the capital structure and credit enhancement provided
to the notes, availability of excess spread over the life of the
transaction, the liquidity facility in the amount of 1.50% of the
rated notes' balance, the legal structure, experience of Allied
Credit as servicer and presence of AMAL Asset Management Limited as
a back-up servicer.
The key challenges in the transaction include the following:
Limited historical performance data available for motor vehicle
loans. With three and a half years of performance data available,
the future performance of these loans could be subject to greater
variability than the current data indicates.
The Class A-X notes, which can be issued up to a maximum notional
size of 3.5% of the total invested amount of all notes (excluding
the Class A-X notes). The Class A-X notes are not collateralised
and receive their payments of interest and principal via the
interest waterfall, thus reducing the excess spread available to
cover portfolio losses.
The revolving period, during which new assets can be added to the
pool, exposes noteholders to adverse collateral pool changes. The
remaining revolving period is twelve months.
Key features of the transaction structure are as follows:
1) While an amortisation event is subsisting, no new receivables
can be added to the pool. Amortisation events include, among
others, the following:
A breach of the pool parameters subsisting for two consecutive
determination dates.
Actual subordination is below the required subordination. The
latter refers to the latest minimum subordination levels
commensurate with the initial respective ratings of the notes (see
below).
Weighted average interest rate on receivables in the pool falls
short of the threshold rate, and the sellers do not supplement the
shortfall by means of a threshold rate deposit within five business
days. The threshold rate covers required payments, which include
senior expenses, interest on the notes up to and including the
Class F interest, as well as principal payments due on the Class
A-X notes, plus 1%.
2) Receivables may only be added to the pool provided the portfolio
parameters are satisfied, which include, among others, the
following:
The losses over the last twelve determination dates (as a
proportion of the average of pool balances as at the end of the
corresponding collection period) do not exceed 3.0%;
90 days past due arrears do not exceed 2.0%;
Loans backed by marine assets do not exceed 7.5% of the pool;
Loans backed by caravans do not exceed 10% of the pool;
Loans with balloon payments must be less than 30% of the pool
balance;
The top 10 obligors must not exceed the lower of 7.5% of the pool
and AUD15 million.
During the revolving period, the notes can be issued up to their
respective limits, repaid on a pro-rata basis and re-issued subject
to required note subordination levels commensurate with the initial
ratings being maintained. If the transaction enters the
amortisation period, the notes will be repaid on a sequential
basis.
The current minimum note subordination levels that are commensurate
with the respective ratings of the notes are 27.0%, 20.6%, 16.2%,
14.6%, 9.6% and 7.4% for the Class A, Class B, Class C, Class D,
Class E and Class F notes, respectively.
3) The transaction benefits from an excess spread ledger available
to cover losses and any shortfalls on required payments remaining
after application of the threshold rate deposit. The excess spread
ledger builds up from income available after reimbursement of
losses. It builds up to the greater of AUD1 million and 1% of the
stated amount of all notes (excluding the Subordinated notes), up
to a maximum of AUD5 million.
4) Margins on the Class B, C and Class D notes will increase if the
ratings of these notes are downgraded below their initial levels.
This may exert further downgrade pressure across the notes.
5) A swap provided by National Australia Bank Limited
(Aa3/P-1/Aa2(cr)/P-1(cr)) will hedge the interest rate mismatch
between the assets bearing a fixed rate of interest, and floating
rate liabilities, excluding the Subordinated notes. There are no
provisions to post collateral or novate the swap in an event of
NAB's ratings downgrade, which increases the linkage between the
ratings of the notes and the rating of the swap provider.
6) NAB is also the liquidity facility provider. Unless the
liquidity facility is novated, its limit will reduce to zero once
the Class A-X and Class A notes are repaid in full.
7) AMAL Asset Management Limited is the back-up servicer. If ARF is
terminated as servicer, AMAL will take over the servicing role in
accordance with the standby servicing deed and its back-up
servicing plan.
Class A-X notes features
The Class A-X notes can be issued up to a maximum notional amount
of 3.5% of the total invested amount of all notes (excluding the
Class A-X notes). These notes are not collateralised and receive
their interest and principal payments via the income waterfall. In
addition, the Class A-X notes benefit from principal draws and from
liquidity draws. The interest and principal on these notes rank
ahead of interest on the Class A notes. If a rapid amortisation
event occurs, the Class A-X notes will be repaid on a pari passu
basis with the Class A notes via the principal waterfall, in
addition to the payments they receive under the income waterfall. A
rapid amortisation event occurs, among others, if an amortisation
event is subsisting for more than 90 days.
The Class A-X notes are repaid in accordance with an amortisation
schedule, which is based on the aggregate of amortisation amounts
due for each Class A-X funded receivable. The Class A-X funded
receivable reflects the commission paid by the seller to the
introducer in respect of that receivable. Each Class A-X funded
receivable amortises over 36 months. If an underlying loan prepays
or defaults, the unamortised amounts of the related Class A-X
funded receivable will form part of the scheduled amounts due on
the Class A-X notes for that period.
Key model and portfolio assumptions:
Moody's Portfolio Credit Enhancement ("PCE") — representing the
loss that Moody's expects the portfolio to suffer in the event of a
severe recessionary scenario — is 27%. Moody's mean default for
this transaction is 5.7%. The assumed recovery rate is 33%.
Expected defaults, recoveries and PCE are parameters used by
Moody's to calibrate its lognormal portfolio loss distribution
curve and to associate a probability with each potential future
loss scenario in Moody's cash flow model to rate consumer ABS.
Moody's has estimated the three parameters based on the historical
default data provided to the rating agency, benchmarking with other
ABS in the Australian market, as well as a qualitative analysis,
focusing on portfolio characteristics and the current economic
environment in Australia. The assumptions also incorporate the
revolving period in the transaction, during which new assets can be
added to the pool, exposing noteholders to adverse collateral pool
changes.
The default and PCE assumptions are primarily driven by Moody's
analysis of loans backed by motor vehicles, which comprise the
majority of the portfolio, and consider the following:
Historical performance data for motor vehicles available and
benchmarking with other auto loan portfolios in the Australian
market. Historical data is only available for three and half years,
covering the period from the first quarter (Q1) of 2019 to Q2 2022.
Defaults for vintages from Q1 2019 to Q2 2021, where at least 12
months of performance is available, have ranged between 1.2% and
4.7%. The observed defaults, and in particular for 2019
originations, are higher than that for most other motor vehicle
loan deals in the Australian market.
Moody's extrapolated default rate is around 3.8%. This includes a
0.50% growth rate in cumulative defaults from period 41 to 84 to
estimate the total cumulative default rate for each vintage over
its life.
Moody's has added several stressed vintages (for example, average
default rate multiplied by three) to account for the limited
available historical data and the lack of performance data through
a stressed economic cycle. Although economic activity in Australia
had contracted substantially in 2020 as a result of the pandemic,
the performance of consumer loans had generally improved as a
result of government support payments and access to
superannuation.
Moody's PCE assumption also considers the portfolio limits on
loans backed by assets such as marine (7.5%) and caravans (10%),
which are not as essential, as, for example, motor vehicles. While
defaults on these loans have been low to date, in a stressed
economic environment, loans secured by these asset types are likely
to see greater deterioration in performance than motor vehicles.
There is no portfolio limit on loans backed by motorcycles.
Key pool characteristics
As of the July 31, 2022, the key pool characteristics were as
follows:
The receivables in the pool amounted to around AUD506 million, and
included around 15,000 loan contracts. The average loans size was
around 33,000.
Loans backed by auto, motorcycles, marine and other assets
represented 93.8%, 3.3%, 1% and 1.8% of the pool, respectively.
Loans to consumer and commercial obligors represented 71.1% and
28.9% of the securitised pool, respectively. Commercial loans are
primarily backed by motor vehicles.
Weighted average interest rate was 7.8%.
Around 15% of the receivables – all auto – had a balloon
payment at the end of its term.
The weighted average seasoning of the portfolio was 4.6 months,
while the weighted average remaining term of the portfolio is 58.7
months. The majority of the receivables had an initial term of 5
years (58%). Receivables with an initial term of 7 years were at
23%, and those with an initial term below 5 years were at around
16%.
The principal methodology used in these ratings was "Moody's Global
Approach to Rating Auto Loan- and Lease-Backed ABS" published in
November 2022.
Factors that would lead to an upgrade or downgrade of the ratings:
Up
Levels of credit protection that are greater than necessary to
protect investors against current expectations of loss could lead
to an upgrade of the ratings. Moody's current expectations of loss
could be better than its original expectations because of fewer
defaults by underlying obligors. The Australian job market is a
primary driver of performance.
Down
Levels of credit protection that are insufficient to protect
investors against current expectations of loss could lead to a
downgrade of the ratings. Moody's current expectations of loss
could be worse than its original expectations because of more
defaults by underlying obligors. The Australian job market is a
primary driver of performance. Other reasons for worse performance
than Moody's expects include poor servicing, error on the part of
transaction parties, a deterioration in credit quality of
transaction counterparties, lack of transactional governance and
fraud.
ANSON STREET: First Creditors' Meeting Set for Nov. 17
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A first meeting of the creditors in the proceedings of Anson Street
Hospitality Pty Ltd will be held on Nov. 17, 2022, at 10:30 a.m. at
the offices of Jirsch Sutherland at Suite 2, Level 14, 383 Kent
Street in Sydney and also via videoconference and teleconference
facilities.
Andrew John Spring and Peter John Moore of Jirsch Sutherland were
appointed as administrators of the company on
Nov. 7, 2022.
AUSGROUP LTD: In Advanced Talks for Sale of Certain Assets
----------------------------------------------------------
The Business Times reports that mainboard-listed AusGroup Ltd is in
discussions with several parties for the potential sale of certain
assets and businesses. It has also suspended the trading of its
shares following a halt called on Nov 7.
Although these talks are at an advanced stage with indicative draft
terms, the integrated service solutions provider said there is no
assurance that any sale will materialise, it said in a bourse
filing on Nov. 10, BT relates.
As the group's board is also in talks with management over the
company's financial position, it has recommended that AusGroup's
shares be suspended from trading, according to BT.
"As the board and management are still in the midst of ascertaining
the situation, a trading suspension would also provide market
certainty and avoid market confusion," the group said.
AusGroup shares last traded at SGD0.009 on Nov 4, its lowest since
AusGroup went public in 2005, BT discloses.
On Nov. 8, the group announced the resignation of Christian
Johnstone as chief financial officer, effective Feb. 6, 2023, BT
reports. Mr. Johnstone, who has held the role since 2016, is
leaving to pursue other career opportunities, AusGroup said in a
bourse filing.
BT says the move comes days after AusGroup said Shane Kimpton will
step down as managing director of the company, but remains as chief
executive to focus on operational matters and issues pertaining to
the company and at the group-level.
Headquartered in West Perth, Australia, AusGroup Limited (SGX:5GJ)
-- https://www.ausgroupltd.com/ -- an investment holding company,
engages in the provision of integrated service solutions to the
energy, resources, industrial, utilities, and port and marine
sectors in Australia and Southeast Asia. The company's Projects
segment provides construction services, including structural,
mechanical, and piping installation works; painting, insulation,
and fireproofing; and engineering, procurement, and construction
services. Its Access Services segment offers engineering and
design, labor supply and stock control, logistics, transportation,
and rope access services. The company's Fabrication and
Manufacturing segment provides turnkey solutions to the oil and gas
sector, including exploration, construction, commissioning,
operation, maintenance and repair, and decommissioning in various
phases of the asset lifecycle. Its Maintenance Services segment
offers preventative and breakdown maintenance services, as well as
shut down services and sustaining capital works. The company's Port
and Marine Services segment provides diesel fuel, port laydown,
logistics, and cargo transportation services to wood chipping and
offshore oil and gas industries. AusGroup Limited also offers
multidisciplinary maintenance, turnarounds, fabrication, specialist
welding, electrical and instrumentation, industrial insulation,
surface protection, scaffold supply and management, scaffold design
and planning, labor supply, training programs, fuel storage and
distribution, and vessel services.
AUSTRALIAN 5: Second Creditors' Meeting Set for Nov. 17
-------------------------------------------------------
A second meeting of creditors in the proceedings of Australian 5
Star Pty Ltd has been set for Nov. 17, 2022, at 2:00 p.m. via
online 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 Nov. 15, 2022, at 5:00 p.m.
Mathew Gollant of CJG Advisory was appointed as administrator of
the company on Oct. 13, 2022.
CRIMSON FRESH: First Creditors' Meeting Set for Nov. 16
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Crimson
Fresh Produce Pty Ltd Will be held on Nov. 16, 2022, at 12:00 p.m.
at the offices of SMB Advisory at Level 2, 551 Little Lonsdale
Street in Melbourne.
Justin Howlett and Andrew MacNeill of SMB Advisory were appointed
as administrators of the company on Nov. 4, 2022.
JB ADVISORY: Second Creditors' Meeting Set for Nov. 17
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A second meeting of creditors in the proceedings of JB Advisory Pty
Limited has been set for Nov. 17, 2022, at 3:00 p.m. virtually via
Microsoft Teams.
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 Nov. 16, 2022, at 5:00 p.m.
Graeme Beattie of Worrells was appointed as administrator of the
company on Oct. 13, 2022.
MEG 52: First Creditors' Meeting Set for Nov. 17
------------------------------------------------
A first meeting of the creditors in the proceedings of Meg 52 Pty
Ltd will be held on Nov. 17, 2022, at 3:00 p.m. via virtual meeting
only.
Stephen Wesley Hathway of Helm Advisory was appointed as
administrator of the company on Nov. 7, 2022.
VICTORY OFFICES: Falls Into Voluntary Administration
----------------------------------------------------
News.com.au reports that an Australian co-working space provider,
that was listed on the stock exchange valued at $80 million just
three years ago, has fallen into voluntary administration and faces
court action from creditors who are allegedly owed AUD3.5 million
in outstanding debts.
Back in 2019, the company called Victory Offices boasted 21 hubs
and 500 co-working desks and had eight new spaces in the pipeline,
but on Nov. 9 it announced it had gone into voluntary
administration, news.com.au says.
It comes as the company was locked out from three offices in
Melbourne and Sydney in July 2021 over allegations of unpaid rent.
According to the report, the company has now completely exited from
co-working in the Sydney CBD where it previously had six office
spaces and has also closed three hubs in Melbourne.
In a statement to the ASX, Victory Offices said it was seeking to
"recover from the effects of the Covid-19 pandemic" by
recapitalising the business and ensuring it can emerge in a
stronger financial position.
"The board resolved that, while it is of the view that the company
is currently solvent, the company is likely to become insolvent at
some future point in time and, hence, that administrators should be
appointed to the company," it said, news.com.au relays. "The
decision comes as the company navigates through a challenging
period where occupancy levels are increasing however higher
overhead costs such as rental costs, competition and managing
ongoing legal disputes with landlords has necessitated the board to
make this decision."
Danny Vrkic and Daniel O'Brien of DV Recovery Management have been
appointed as voluntary administrators.
Mr. Vrkic declined to comment to news.com.au as the firm had only
just been appointed.
Victory Offices is facing an application to wind up the company
launched by creditors allegedly owed about AUD3.5 million in
overdue debts, which is due to be heard in the Supreme Court on
Nov. 11, including AUD985,269 in unpaid rent and associated
interest, news.com.au reports citing Business News Australia.
Victory Offices had just AUD24,000 in the bank account at the end
of its last quarter and in September this year, it posted a AUD50.1
million loss, news.com.au discloses.
Its results showed the company's assets of AUD1.45 million were
overshadowed by its current liabilities of AUD22.2 million.
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C H I N A
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COUNTRY GARDEN: Fitch Lowers LongTerm IDRs to 'BB-', Outlook Neg.
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Fitch Ratings has downgraded China-based homebuilder Country Garden
Holdings Company Limited's Long-Term Foreign- and Local-Currency
Issuer Default Ratings (IDRs), senior unsecured rating and the
rating on the outstanding bonds to 'BB-' from 'BB+'. The Outlook is
Negative. The ratings have been removed from Rating Watch Negative
(RWN).
The downgrade reflects the property sector's continued poor
capital-market conditions, limiting Country Garden's access to
unsecured funding and affecting its financial flexibility. Country
Garden's contracted sales may have stabilised in recent months and
Fitch believes its available cash balance and internal cash
generation should be sufficient to cover its medium-term
capital-market debt maturities. However, there remains uncertainty
over the sustainability of its sales, as well as the availability
of its cash on hand. Fitch believe these risks are appropriately
reflected at the current rating level.
The Negative Outlook reflects Fitch's view that the sector's
challenging operating and funding environment may persist, further
dampening the company's financial flexibility. However, any change
is likely to be gradual, removing the necessity for a Rating
Watch.
Country Garden's ratings are supported by its strong market
position, scale and diversification. Fitch believes the company's
liquidity is adequate in the medium term as it can cover its
maturities with internal cash generation.
KEY RATING DRIVERS
No Improvement in Funding Access: Recent state-guaranteed bond
issues have not significantly stabilised capital-market access for
the sector and the company. Fitch estimates that Country Garden has
CNY10 billion and CNY33 billion in unsecured debt maturities in
2H22 and 2023, respectively, most of which will likely be repaid
with internal cash amid current market conditions.
Country Garden is preparing for a further issuance of bonds to be
guaranteed by China Bond Insurance Co Ltd (CBIC), which will be
completed by end-2022, following a CNY1.5 billion issuance in
September 2022. Fitch believes additional issuance of
state-guaranteed bonds will depend on the company's ability to
provide quality collateral.
Sales Stabilisation Is Key: Country Garden reported sales rose 11%
month-on-month to CNY32 billion in September, while 9M22
attributable sales dropped by 38% yoy to CNY276 billion,
outperforming the 50%-60% sales decline for other privately owned
developers. Country Garden's established brand name and track
record supported its sales despite the weak market conditions,
especially compared with its non-state-owned peers. However,
sustained sales stabilisation remains uncertain amid the
challenging operating environment.
Working Capital to Improve: Operating cash flow will remain under
pressure in the near term even with sales stabilisation due to the
reduction in payables and construction loans as the company adjusts
working capital to its smaller scale. Fitch expects the adjustment
process to be largely completed in mid-2023 if sales stabilise at
current levels, resulting in stronger operating cash generation
thereafter, which will support its ability to meet debt maturities
in 2023.
The company has boosted the process by minimising land acquisition
and cutting costs where possible. Potential outflows to joint
ventures (JVs) also remain a risk given sizeable guarantees
provided to JVs and associates of CNY35 billion, though this has
fallen from a peak of CNY73 billion at end-2019.
Cash Availability Risk: Fitch believes the accessibility of cash on
hand remains a key risk for many property developers, although
Country Garden's higher attributable sales percentage and its lower
exposure to non-controlling interests (NCI) suggest stronger access
to project-level cash than peers with higher NCI exposure. It
manages cash centrally, with unrestricted cash at project companies
typically up-streamed to headquarters and regional holding
companies. Cash held at the holding company appears sufficient to
meet capital market debt maturities in the next 12-18 months.
Positioned for Recovery: Fitch believes its land bank is
sufficiently diversified to capture opportunities when the property
market recovers. It is less reliant than peers on any regional
market and has been less affected by market changes, such as
mortgage payment boycotts. Competitors have largely moved out of
Tier 3-4 cities, which will help it increase market share,
tempering lower demand. It still had CNY1.2 trillion in
attributable sellable resources and CNY0.3 trillion in potential
attributable sellable resources as of 1H22, sufficient to support
its business in the medium term.
DERIVATION SUMMARY
Country Garden's rating is driven by its weakened financial
flexibility.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- 35% yoy decline in attributable contracted sales in 2022, flat in
2023
- 90% cash collection rate in 2022 and 2023
- Construction costs at 70% and 65% of attributable sales proceeds
in 2022 and 2023, respectively
- Land acquisition costs at 6%-7% of attributable sales proceeds in
2022 and 2023
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
The Outlook will be revised to Stable if there is meaningful
improvement in access to unsecured funding and/or contracted sales
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Persistent drain on working capital
- No stabilisation in contracted sales or cash collection
- Decline in readily available cash
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: Country Garden had CNY148 billion in cash as of
1H22, of which CNY77 billion is available cash. Fitch believes the
company has a sufficient liquidity buffer to support continued debt
reduction, both at the project level and the holding-company
level.
ISSUER PROFILE
Country Garden is a leading homebuilder in China, with more than
3,200 projects across the country. It mainly focuses on third- and
fourth-tier cities, but has recently shifted its land acquisitions
towards higher-tier cities.
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
----------- ------ -----
Country Garden
Holdings Company
Limited LT IDR BB- Downgrade BB+
LC LT IDR BB- Downgrade BB+
senior unsecured LT BB- Downgrade BB+
COUNTRY GARDEN: Pulls Out of S&P Rating Following Downgrade
-----------------------------------------------------------
Caixin Global reports that Country Garden Holdings Co. Ltd.
withdrew from S&P Global Ratings' credit rating after a downgrade
and following discussions with S&P, China's largest property
developer by sales said.
According to Caixin, S&P lowered its long-term issuer credit rating
Nov. 8 on Country Garden to B+ from BB, citing weaker confidence in
China's private real estate companies, Country Garden's narrowed
financing channels and possible deterioration of the developer's
liquidity amid weakening sales.
After the rating cut, Country Garden said the company's
fundamentals have not changed significantly, its sales are stable
to positive, and it completed a domestic refinancing in September,
Caixin relays.
Country Garden Holdings Company Limited is an investment holding
company principally engaged in the sales of properties. The Company
operates its business through five segments: Property Development
segment, Construction Fitting and Decoration segment, Property
Investment segment, Property Management segment and Hotel Operation
segment. The Company's subsidiaries include Wuhan Country Garden
Lianfa Investment Co., Ltd, Jurong Country Garden Property
Development Co., Ltd and Chuzhou Country Garden Property
Development Co., Ltd.
JIANGSU ZHONGNAN: Moody's Downgrades CFR to Ca, Outlook Negative
----------------------------------------------------------------
Moody's Investors Service has downgraded Jiangsu Zhongnan
Construction Grp Co., Ltd.'s corporate family rating to Ca from
Caa2, and the senior unsecured rating on the bonds issued by Haimen
Zhongnan Investment Dev (Intl) Co Ltd and guaranteed by Jiangsu
Zhongnan to C from Caa3.
The rating outlooks remain negative.
"The downgrade reflects Moody's expectation of weak recovery
prospects for Jiangsu Zhongnan's bondholders, following the
company's interest payment default on its USD bond," says Cedric
Lai, a Moody's Vice President and Senior Analyst.
"The negative outlook reflects Moody's view that recovery prospects
for Jiangsu Zhongnan's creditors could weaken further if the
interest payment default extends to a wider default of other
debts," adds Lai.
RATINGS RATIONALE
Jiangsu Zhongnan announced on 7 November 2022 that it had missed
the interest payment on its outstanding offshore bond [1]. The
interest payment default reflects the company's weak liquidity and
constrained financial flexibility, and weak recovery prospects for
its creditors. It could also trigger a cross default and accelerate
the repayment of the company's other debt obligations. The company
would have to rely on asset disposals or other fundraising plans
for debt servicing. However, there are high uncertainties
associated with such fundraising activities.
Haimen Zhongnan Investment Dev (Intl) Co Ltd's C senior unsecured
debt rating is one notch lower than Jiangsu Zhongnan's CFR due to
structural subordination risk. This risk reflects the fact that the
majority of claims are at the operating subsidiaries and have
priority over Jiangsu Zhongnan's senior unsecured claims in a
bankruptcy scenario. In addition, the holding company lacks
significant mitigating factors for structural subordination. As a
result, the expected recovery rate for claims at the holding
company will be lower.
In terms of environmental, social and governance (ESG)
considerations, Moody's has considered the company's concentrated
ownership by Zhongnan Urban Construction Investment Co., Ltd.,
which had a 52.09% stake in the company as of November 05, 2022,
and the risks posed by its shareholder's share pledge financing.
The agency has also considered Jiangsu Zhongnan's elevated
financial risk associated with debt restructuring as it defaults on
its interest payment.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could further downgrade Jiangsu Zhongnan's CFR if the
recovery prospects for its creditors deteriorate.
An upgrade is unlikely, given the negative outlook.
However, positive rating momentum could develop if Jiangsu Zhongnan
repays its maturing debt obligations and materially improves its
liquidity.
The principal methodology used in these ratings was Homebuilding
and Property Development published in October 2022.
Jiangsu Zhongnan is based in China's Jiangsu Province and
principally engages in property development and construction
services. It had a total land bank of around 37.0 million square
meters as of June 2022.
The company was founded by Chen Jinshi, who has been in China's
construction business since 1988. It listed on the Shenzhen Stock
Exchange in 2009.
WENS FOODSTUFF: Fitch Affirms Foreign Currency IDR at 'BB+'
-----------------------------------------------------------
Fitch Ratings has affirmed Chinese hog and broiler producer Wens
Foodstuff Group Co., Ltd.'s Long-Term Foreign-Currency Issuer
Default Rating (IDR) at 'BB+'. The Outlook is Negative. The agency
has also affirmed Wens' senior unsecured and US-dollar note ratings
at 'BB+'.
The affirmation reflects the company's efforts to cut hog
production costs, which has helped restore its cost leadership and
normalise its margin. Wens remains as China's second-largest hog
breeder and a leader in broiler production. Fitch expects that the
company has resumed operating cash flow generation and to restore a
moderate leverage profile, along with discretion for large
expansionary capex.
The Negative Outlook is based on the sensitivity of Wens' cash flow
generation to volatile market conditions and the corresponding
impact on its deleveraging pace. There is low visibility of the
duration and extent of the current hog-price upcycle; sow and hog
inventory remain sufficient, yet consumption may weaken, especially
for the food-service sector. This may slow a profit recovery and
deleveraging and may be made worse by an increasing difficulty in
further reducing production costs amid high grain prices. Fitch may
revises the Outlook to Stable should Wens demonstrate a longer
record of cash generation to replenish the balance sheet following
a period of losses.
KEY RATING DRIVERS
Volatile Profitability: Fitch believes volatile profitability could
slow Wens' deleveraging pace. The current industry upcycle from
3Q22 is positive, but a sustainable recovery in cash generation is
uncertain, particularly following the losses registered in 2H21 and
1H22 during the cycle trough. Wens' profitability is sensitive to
pricing and cost and Fitch forecasts its mid-cycle EBITDA margin to
be at the lower end of its historical norm, at around 10%-11% in
2022-2025, in light of the upcycle and moderate cost reduction
prospect amid high grain prices.
Grain Inflation Dampens Cost Recovery: Fitch expects Wens can
continue reducing hog production costs through better productivity,
but high feed prices remain an obstacle for significant cost cuts.
Wens had lowered its full costs to CNY16.6 per kilogram in 3Q22,
from around CNY18.0 in 2021, following improved hog mortality and
sow herd quality, especially in relation to fertility.
However, further savings may be limited by rising local grain
prices stemming from higher demand and a surge in global
agricultural commodity costs, with prices for key feed inputs,
including wheat, corn and soybean meal, rising by 12%, 4% and 48%
year to date, respectively.
Hog Prices to Moderate: High hog prices should persist in 4Q22,
reflecting a modest hog-supply shortage in a traditionally
high-demand season. However, Fitch expects the supply and demand
dynamic to rationalise in 2023 and a moderate restocking of
breeders after a volatile and extreme downcycle. Furthermore,
sustained high grain costs may constrain a major supply rebound and
limit price downside, while the government intends to rein-in
extreme price volatility in agricultural commodities, including
hogs, through fiscal measures and guidance to large-scale
breeders.
Capex Flexibility: Fitch expects Wens to remain prudent in
fixed-asset capex to preserve cash flow in the near term, but it
may boost sow herds upon a better hog margin for future growth.
Wens reported capex of CNY13.2 billion in 2021, but this dropped to
CNY6.9 billion in 9M22. The company says its 2022 fixed-asset capex
budget is mostly for hog farming community and processing
facilities and poultry farming. Fitch expects a capex intensity
rate of 9%-12% through to 2025, with around half used for sellable
biological assets after culling. Fixed asset spending should be
flexible.
Deleverage Capacity, Adequate Coverage: Improved operating cash
flow from the recent hog upcycle should smooth Wens' leverage
profile and Fitch expects Wens to pay down some of its debt using
the incremental operating cash flow. Deleveraging should quicken in
2022 compared with its previous forecast to the mid-single-digits,
with mid-cycle net leverage of 3.0x-3.5x, providing the company
remains prudent in its capex and dividend policies. Coverage
metrics should remain healthy in the high-single-digits thanks to
cheap onshore funding costs.
Market Position Maintained: Fitch believes some of Wens'
business-profile factors, such as market position and protein
diversification, are competitive against peers. Its hog volume and
poultry scale place it in a leading position in China's protein
industry. It also has broad domestic coverage, but protein
diversification may carry less benefit during downcycles, due to a
high weighting in its hog business. That said, the broiler business
should bring substantial cash flow in 2022 amid higher prices,
although these are likely to come down due to strong seasonality in
China's poultry industry.
DERIVATION SUMMARY
Wens' credit profile is comparable with that of 'BB' category
protein peers. Its business profile is as strong as that of Minerva
S.A. (BB/Stable) and BRF S.A.(BB/Stable) for its normalised
mid-cycle EBITDA generation, broad coverage in domestic pork
consumption and protein diversification. Wens' mid-cycle leverage
is also comparable, but China's volatile hog cycle and high feed
inflation have dampened the company's deleverage capacity, which
justifies the Negative Outlook.
Wens has a weaker financial profile than investment-grade protein
peers, such as China-based WH Group Limited (BBB+/Stable) and
US-based Pilgrim's Pride Corporation (BBB-/Stable), amid the
inherent volatility of China's hog breeding industry. Wens'
mid-cycle EBITDA, market position and protein diversification
between swine and poultry show some low investment-grade
characteristics, but are offset by high leverage and minimal margin
stability amid the industry downturn.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer:
- Revenue to rise by 2%-26% in 2022-2025 based on volume and
average selling price recovery
- EBITDA to range between 10%-11% in 2022-2025
- Working capital flow to remain negative as herds grow in
2022-2024
- Capex intensity rate of 9%-12% on sow replenishment as well as
community farming and processing facilities
- No dividends until net income turns positive, with a pay-out rate
of 30%
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Fitch may revises the Outlook to Stable if Wens does not breach
the negative sensitivities over the next six-12 months.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Net debt/EBITDA remaining above 3.5x from 2023.
- A widening of negative free cash flow due to high capex or
dividends.
LIQUIDITY AND DEBT STRUCTURE
Reliance on Bank Financing: The company had readily available cash
of around CNY5.2 billion, interbank deposits of CNY2.5 billion and
other liquid asset, mostly bank wealth-management products, of
CNY3.2 billion at end-June 2022. The company reported short-term
debt obligations of CNY3.6 billion, which were primarily bank
loans. Fitch believes the company can roll these over due to its
healthy banking relationships. Wens faces bond maturities,
including bonds puttable, of CNY3.2 billion in 3Q23, which it may
choose to repay or refinance utilising cash, bank loans or domestic
bond issuance.
ISSUER PROFILE
Wens is one of China's largest protein producers, focusing on the
hog and broiler farming businesses. It also operates other poultry,
diary production and animal farming-related businesses.
ESG CONSIDERATIONS
Fitch have revised the ESG Relevance Score to '3', from '4', for
Customer Welfare - Fair Messaging, Privacy & Data Security, as
African swine fever's adverse impact on hog production efficiency
has moderated in 2022.
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
----------- ------ -----
Wens Foodstuff Group
Co., Ltd. LT IDR BB+ Affirmed BB+
senior unsecured LT BB+ Affirmed BB+
=========
I N D I A
=========
36GUNN MARRIAGE: Voluntary Liquidation Process Case Summary
-----------------------------------------------------------
Debtor: 36Gunn Marriage Private Limited
5544, Orchid Crescent
DLF Phase-4 Gurugram
Harayana 122009
Liquidation Commencement Date: October 17, 2022
Court: National Company Law Tribunal, Gurgaon Bench
Insolvency professional: Ms. Manisha Rawat
Interim Resolution
Professional: Ms. Manisha Rawat
A-1/B, Third Floor
T-02, Sector-16
Noida, Uttar Pradesh 201301
E-mail: manisharawatfcs@gmail.com
Tel. 0120-4227699
Last date for
submission of claims: November 16, 2022
ANKUR IRON: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Ankur Iron
India Private Limited (AIPL) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 5 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 2.12 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 0.38 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with AIPL for
obtaining information through letters and emails dated July 12,
2022 and September 14, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AIPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AIPL continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
AIPL was set up as a proprietorship concern named Ankur Steel
Corporation in 1982 by Mr. Kiran Mehta; it was reconstituted as a
private limited company with its current name in 2011. AIPL trades
in steel and steel products such as cold-rolled sheets, galvanized
sheets, hot-rolled sheets and plates.
AXIOMATA ELEVATORS: Liquidation Process Case Summary
----------------------------------------------------
Debtor: Axiomata Elevators Private Limited
Room No. 10A, B & B Building
Power House Road
Opp. Sharon Marthoma Church
Palarivattom P.O.
Kochi 682025, Kerala
Liquidation Commencement Date: November 1, 2022
Court: National Company Law Tribunal, Kochi Bench
Date of closure of
insolvency resolution process: October 28, 2022
Insolvency professional: Renahan Vamakesan
Interim Resolution
Professional: Renahan Vamakesan
Villa No. 23, Skyline Rosemount Homes
Kunjan Bava Road, Vyttila P.O.
Kochi 682019, Kerala
E-mail: renahanv@gmail.com
Last date for
submission of claims: December 2, 2022
BAJRANG SALES: CRISIL Reaffirms B+ Rating on INR0.3cr LT Loan
-------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable/CRISIL A4'
ratings on the bank facilities of Shree Bajrang Sales Private
Limited (SBSPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.2 CRISIL A4 (Reaffirmed)
Cash Credit 5 CRISIL A4 (Reaffirmed)
Letter of Credit 6.5 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 0.3 CRISIL B+/Stable (Reaffirmed)
The ratings continue to reflect average financial risk profile of
SBSPL, constrained because of subdued debt protection metrics,
modest scale of operations, low profitability and moderately large
working capital requirement. These weaknesses are partially offset
by extensive experience of the promoters in the steel trading
industry and their need-based funding support.
Analytical approach
Unsecured loan (INR11.23 crore as on March 31, 2022) extended by
the promoters has been treated as neither debt nor equity as the
loan is subordinated to bank debt, carries lesser interest than
external debt and is expected to remain in the business over the
medium term.
Key rating drivers and detailed description
Weaknesses:
* Average financial risk profile: Networth was modest at INR7.75
crore and total outside liabilities to adjusted networth ratio was
moderate at 0.82 time as on March 31, 2022. Debt protection metrics
were subdued because of lower profitability, with interest coverage
ratio of 1.39 times and net cash accrual to total debt ratio of
0.04 time in fiscal 2022.
* Modest scale of operations: Intense competition and trading
nature of the business may continue to constrain scalability,
pricing power and operating margin. Revenue was INR96.65 crore and
profitability at around 1.00% in fiscal 2022. Despite revenue
increase, profitability remains constrained by trading nature of
the business.
* Moderately large working capital requirement: Gross current
assets were 83 days as on March 31, 2022, driven by sizeable
receivables of 49 days. The company provides credit of 45-60-90
days to customers depending on its relationships with them.
Inventory was around 21 days as on March 31, 2022. The company
receives credit of about 30 days from suppliers and sometimes
provides advances to suppliers to ensure timely supply of raw
material, thus stretching the working capital cycle. This resulted
in high reliance on the working capital limit, which remains a
monitorable.
Strength:
* Extensive experience of, and funding support extended by, the
promoters: The three-decade-long experience of the promoters and
their healthy relationships with customers and suppliers should
continue to support the business risk profile. Timely, need-based
funding support extended by the promoters is likely to persist.
Liquidity: Stretched
Liquidity is stretched, marked by modest cash accruals tightly
matched against repayment obligations. Bank limit utilisation was
high at around 90% for the 12 months through June 2022. Current
ratio was healthy at 3.9 times on March 31, 2022. The promoters are
likely to continue extending timely, need-based funds (equity
and/or unsecured loans) to support working capital requirement and
repayment obligation.
Outlook: Stable
SBSPL will continue to benefit from its healthy relationship with
the principals and experience of the management in mitigating risks
inherent in the trading business.
Rating sensitivity factors
Upward factors
* Sustained Steady increase in revenue and operating profitability,
leading to cash accrual more than INR60 lakh
* Sustainable improvement in debt protection metrics on sustained
basis
Downward factors
* Revenue falling below INR60 crore and decline in the operating
margin
* Deterioration of the financial and liquidity risk profiles
Incorporated in 1989 by Mr. Santkumar Bhartia and Mr. Devendra
Bhartia, Mumbai-based SBSPL trades in ferrous and non-ferrous ores,
alloys, and minerals.
BHAGYODAYA MOTORS: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Bhagyodaya
Motors Private Limited (BMPL) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 15 CRISIL D (Issuer Not
Cooperating)
Channel Financing 1.75 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 2.70 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Standby Line 1 CRISIL D (Issuer Not
of Credit Cooperating)
CRISIL Ratings has been consistently following up with BMPL for
obtaining information through letters and emails dated July 12,
2022 and September 14, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of BMPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on BMPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
BMPL continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Set up in 1998 as a partnership firm, BMPL was reconstituted as a
private limited company in 2002. The company is the exclusive
authorized dealer for TML's passenger car in three districts -
Bellary, Koppal, and Raichur (all in Karnataka).
BIGZETTA SYSTEMS: Voluntary Liquidation Process Case Summary
------------------------------------------------------------
Debtor: Bigzetta Systems Private Limited
C-40, First Floor New Multan Nagar
North West Delhi, Delhi 110056
India
Liquidation Commencement Date: November 3, 2022
Court: National Company Law Tribunal, New Delhi Bench
Insolvency professional: Arun Gupta
Interim Resolution
Professional: Arun Gupta
S-34, LGF
Greater Kailash-II
New Delhi 110048
E-mail: arungupta2211@gmail.com
bigzetta.in.vol.liq@gmail.com
Tel: 011-41066313
Last date for
submission of claims: December 2, 2022
BREMELS RUBBER: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Bremels
Rubber Industries Private Limited continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2 CRISIL D (Issuer Not
Cooperating)
Bill Discounting 3 CRISIL D (Issuer Not
Cooperating)
Cash Credit 7 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 2 CRISIL D (Issuer Not
Cooperating)
Term Loan 15 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with Bremels for
obtaining information through letters and emails dated July 12,
2022 and September 14, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of Bremels, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
Bremels is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of Bremels continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Bremels, set up in 1971, manufactures tyre retreads used for
retreading worn-out tyres of heavy vehicles. It sells its products
under the Bremels brand. The company also manufactures solid tyres
for forklifts. It is setting up a solid tyre manufacturing unit at
the Padubidri special economic zone in Udupi (Karnataka). The capex
will add capacity of 0.15 million tyres per year.
CONSTRUCTION CATALYSERS: CRISIL Moves D Ratings to Not Cooperating
------------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Construction Catalysers Private Limited (CCPL) to 'CRISIL D/CRISIL
D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 20 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Bank Guarantee 2 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 20 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Letter of Credit 2.5 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Cash 2 CRISIL D (ISSUER NOT
Credit Limit COOPERATING; Rating Migrated)
Proposed Letter 2 CRISIL D (ISSUER NOT
of Credit COOPERATING; Rating Migrated)
In accordance with the terms of the rating agreement with CCPL,
CRISIL Ratings has sent repeated reminders for payment of fees
towards the surveillance exercise through letters and emails dated
August 12, 2022 and October 13, 2022 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/ reviewed with
the suffix 'ISSUER NOT COOPERATING'.
On account of lack of management cooperation towards non-payment of
fees, CRISIL Ratings has migrated the rating on bank facilities of
CCPL to 'CRISIL D/CRISIL D Issuer not cooperating'.
CCPL was formed as a partnership firm in 1988, and reconstituted as
a private-limited company in 2007. The company, based in Pune,
erects steel structures or facades, and undertakes design,
fabrication and installation. The product range includes rooftops,
sunshades, and facades, used in the real estate industry, and they
are available in various forms such as curtain walls, suspended
glasses, skylights, canopies, windows and doors.
DELTRONIX INDIA: Liquidation Process Case Summary
-------------------------------------------------
Debtor: Deltronix India Limited
A-323, Sarita Vihar
New Delhi 110044
Liquidation Commencement Date: October 20, 2022
Court: National Company Law Tribunal, New Delhi, Bench-III
Date of closure of
insolvency resolution process: October 18, 2022
Insolvency professional: Ms. Sunita Umesh
Interim Resolution
Professional: Ms. Sunita Umesh
M/s. UCC & Associates LLP
Chartered Accountants
1315, Ansal Tower
38, Nehru Place
New Delhi 110019
E-mail: sunita.umesh@uccglobal.in
- and -
B1/02, Palm Grove Villa
Ardee City Gate No. 1
Sector 52, Gurugram
Harayana 122011
E-mail: cirp.deltronix@gmail.com
Last date for
submission of claims: November 17, 2022
DEWA PROJECTS: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Dewa Projects
Private Limited (DPPL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 12.15 CRISIL D (Issuer Not
Cooperating)
Term Loan 13.67 CRISIL D (Issuer Not
Cooperating)
Term Loan 30.25 CRISIL D (Issuer Not
Cooperating)
Term Loan 13.68 CRISIL D (Issuer Not
Cooperating)
Term Loan 9.50 CRISIL D (Issuer Not
Cooperating)
Term Loan 48.46 CRISIL D (Issuer Not
Cooperating)
Term Loan 14.14 CRISIL D (Issuer Not
Cooperating)
Term Loan 40.39 CRISIL D (Issuer Not
Cooperating)
Term Loan 39.77 CRISIL D (Issuer Not
Cooperating)
Term Loan 13.55 CRISIL D (Issuer Not
Cooperating)
Term Loan 32.31 CRISIL D (Issuer Not
Cooperating)
Term Loan 10.25 CRISIL D (Issuer Not
Cooperating)
Term Loan 8.88 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with DPPL for
obtaining information through letters and emails dated July 30,
2022 and September 30, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of DPPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on DPPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
DPPL continues to be 'CRISIL D Issuer Not Cooperating'.
DPPL was established in April 2005. The company is constructing
residential apartments at Marine Drive, Kochi. The project which is
being developed at an estimated cost of over INR4,600 crore, is in
the early phase of construction. The company has been promoted by
Mr. Venugopalan Nair, a Kuwait-based non-resident Indian.
DHANYA STEEL: CRISIL Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Dhanya Steel
Industries Private Limited (DSIPL; part of the Dhanya group)
continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 13 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with DSIPL for
obtaining information through letters and emails dated July 12,
2022 and September 14, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of DSIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on DSIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
DSIPL continues to be 'CRISIL D Issuer Not Cooperating'.
For arriving at the rating, CRISIL Ratings has combined the
business and financial risk profiles of DSIPL and Dhanya TMT
Private Limited (DTPL). This is because the two companies, together
referred to as the Dhanya group, are in similar lines of business
and under a common promoter group, and have significant business
and financial linkages with each other.
Established in December 2007, DSIPL manufactures ingots and
billets. The company has its manufacturing facility in Chittoor
district (Andhra Pradesh).
DIVYA JYOTI: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Divya Jyoti
Industries Limited (DJIL) continue to be 'CRISIL D/CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.19 CRISIL D (Issuer Not
Cooperating)
Bank Guarantee 0.23 CRISIL D (Issuer Not
Cooperating)
Bank Guarantee 0.23 CRISIL D (Issuer Not
Cooperating)
Cash Credit 9.52 CRISIL D (Issuer Not
Cooperating)
Cash Credit 8.84 CRISIL D (Issuer Not
Cooperating)
Cash Credit 8.84 CRISIL D (Issuer Not
Cooperating)
Letter Of Guarantee 2.6 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 3.9 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 0.65 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with DJIL for
obtaining information through letters and emails dated July 27,
2022 and September 28, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of DJIL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on DJIL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
DJIL continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
DJIL, incorporated in 1992, manufactures soya bean oil, soya oil
extracts, DOC, and other value-added products. The company's
manufacturing facility at Pithampur in Dhar, Madhya Pradesh, has an
extraction capacity of 700 tpa and refining capacity of 100 tpa.
ESHWARNATH CONSTRUCTIONS: CRISIL Keeps D Ratings in Not Cooperating
-------------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Eshwarnath
Constructions (ECS) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 5 CRISIL D (Issuer Not
Cooperating)
Cash Credit 5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with ECS for
obtaining information through letters and emails dated July 12,
2022 and September 14, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of ECS, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ECS
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
ECS continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Set up in 1997 as a partnership firm ECS executes civil
construction work for the Southern Railways and private players in
Tamil Nadu. Operations are managed by Mr. M Athmanathan.
GAJANAN GANGAMAI: Liquidation Process Case Summary
--------------------------------------------------
Debtor: Gajanan Gangamai Industries LLP
902, Hub Town Viva
Western Express highway
Nr Western Express Highway Mumbai
Maharashtra 400060
Liquidation Commencement Date: November 3, 2022
Court: National Company Law Tribunal, Mumbai Bench
Date of closure of
insolvency resolution process: October 10, 2022
Insolvency professional: Mr. Kamal Kishor Gurnani
Interim Resolution
Professional: Mr. Kamal Kishor Gurnani
Flat No. 402, Building No. 23E
Palazzio CHS Ltd.
Mahada Housing Society
Powai, Mumbai 400076
E-mail: kamalgurnaniip@gmail.com
- and -
702, Janki Centre
Dattaji Salvi Road
Off Veera Desai Road
Andheri West, Mumbai 400053
E-mail: liq.ggil@rirp.co.in
Last date for
submission of claims: December 3, 2022
GANNON DUNKERLEY: NCLT Disposes Insolvency Bid Against Firm
-----------------------------------------------------------
The Economic Times reports that the Mumbai bench of the National
Company Law Tribunal (NCLT) has disposed of an insolvency petition
filed by Canara Bank against Gannon Dunkerley & Co, as lenders are
considering a settlement proposal from the construction and
engineering firm.
ET relates that the insolvency petition had been filed by Canara
Bank, after Gannon Dunkerley defaulted on dues of more than
INR43.26 crore. Subsequently, the company approached the consortium
of eight lenders, led by State Bank of India, with the settlement
proposal.
Gannon Dunkerley and Company Limited provides industrial
construction services. The Company offers civil, mechanical, and
electrical construction services for energy, petrochemical, steel,
cement, and textile industries. Gannon Dunkerley serves customers
in India.
HARITHA FERTILISERS: CRISIL Keeps D Ratings to Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Haritha
Fertilisers Limited (HFL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 15 CRISIL D (Issuer Not
Cooperating)
Cash Credit 16 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with HFL for
obtaining information through letters and emails dated July 12,
2022 and September 14, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of HFL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on HFL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
HFL continue to be 'CRISIL D Issuer Not Cooperating'.
Incorporated in 2006, HFL is involved in the manufacturing of
nitrogen-phosphorous-potassium (NPK) fertilizers. The company has
two manufacturing facilities with installed capacity of 1.50 lakh
metric tonne per annum each. The unit-I is located at
Ankireddypalli village in Ranga Reddy district and unit-II is
located at Damaracherla village in Nalgonda district of Telangana.
The company sells products under own brand 'Nandi' in Telangana.
HIMACHAL PRADESH: BJP Pushes State on the Verge of Bankruptcy
-------------------------------------------------------------
Hindustan Times reports that All India Congress Committee (AICC)
general secretary and Rajya Sabha member Randeep Singh Surjewala on
Nov. 9 said that Himachal was in a miserable condition and on the
verge of bankruptcy because of the Jai Ram Thakur-led BJP
government.
"No one had ever thought Himachal, where great people like
Virbhadra Singh had ruled, there would be CM remote controlled by
Delhi," said Surjewala addressing an election rally at
Dharamshala.
Taking a veiled dig at Prime Minister Narendra Modi, Surjewala said
that "Jumlebazon Ka Sardar" had once come to Himachal with his fake
promises, Hindustan Times relays.
"Remember, at his Sujanpur rally on February 18, 2014, he had
promised to bring back the alleged INR80 lakh crore black money
deposit INR15 lakh each in the bank accounts of people," the
Congress leader, as cited by Hindustan Times, said. "Ask him,
where are that IN80 Cr and INR15 lakh," he added.
Hitting out at the BJP governments, at the centre and state, over
inflation, Surjewala said BJP raised a hue and cry when the cooking
gas cylinder price was INR410, and its price has now crossed
INR1,200.
"Petrol which was at INR71 per litre, now costs INR98 in Himachal,
diesel reached INR84 from INR65, and edible oil is up from INR85 to
INR190," he said.
He said today farmers and apple growers of Himachal were not
getting a reasonable price for their produce because Modi's friend
(Gautam) Adani had a monopoly in the market, Hindustan Times
relays.
Hindustan Times adds that Surjewala also slammed the BJP government
for imposing GST on apple packaging material and daily need items.
Raking up the police constable recruitment scam, the Congress
leader said that the youth of the state were jobless because the
BJP government sold jobs in police and Himachal Pradesh
University.
Praising the Congress' Dharamshala candidate Sudhir Sharma,
Surjwala said he was among those leaders who always stand by the
people.
"When there was a cloudburst here, those in power turned a blind
eye to the problems of the public. At that time, it was Sharma who
worked to provide relief to the people," he said.
Himachal Pradesh is a northern Indian state in the Himalayas. It's
home to scenic mountain towns and resorts such as Dalhousie.
INDFLUX7 TECHNOLOGY: Voluntary Liquidation Process Case Summary
---------------------------------------------------------------
Debtor: Indflux7 Technology Consulting Private Limited
Plot No. 178, EPIP Phase-II
Whitefield Industrial Area
Bangalore 560066
Liquidation Commencement Date: October 31, 2022
Court: National Company Law Tribunal, Coimbatore Bench
Insolvency professional: Vasudevan Gopu
Interim Resolution
Professional: Vasudevan Gopu
G.V. Enclave 18/30
Ramani Street, K.K. Pudur
Saibaba Colony
(4th Right Opp. Road to Saibaba Colony
Hotel Annapoorna Road)
Coimbatore 641038
Tamil Nadu, India
E-mail: vasudevangopu.ip@gmail.com
vasudevanacs@gmail.com
Tel: 0422-4347063
Last date for
submission of claims: November 30, 2022
JCBL LIMITED: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of JCBL Limited
(JCBL) continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Corporate Loan 11.92 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 1.68 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with JCBL for
obtaining information through letters and emails dated July 12,
2022 and September 14, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of JCBL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on JCBL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
JCBL continue to be 'CRISIL D Issuer Not Cooperating'.
Incorporated in 1989, JCBL is promoted by Mr. Rajinder Aggarwal.
The Chandigarh-based company manufactures bus bodies for luxury
coaches and special vehicles such as ambulances, mobile automated
teller machines (ATMs), bullet-proof vans (for politicians),
political campaign vehicles and hospitals-on-wheels. It also
manufactures transport containers.
JOYS STEEL: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Joys
Steel Impex (JSI) to 'CRISIL D/CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL D (Issuer Not
Cooperating)
Cash Credit 7 CRISIL D (Issuer Not
Cooperating)
Cash Credit 10 CRISIL D (Issuer Not
Cooperating)
Cash Credit 13 CRISIL D (Issuer Not
Cooperating)
Cash Credit 4 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 7 CRISIL D (Issuer Not
Cooperating)
In accordance with the terms of the rating agreement with JSI,
CRISIL Ratings has sent repeated reminders for payment of fees
towards the surveillance exercise through letters and emails dated
August 12, 2022 and October 13, 2022 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/ reviewed with
the suffix 'ISSUER NOT COOPERATING'.
On account of lack of management cooperation towards non-payment of
fees, CRISIL Ratings has migrated the rating on bank facilities of
JSI to 'CRISIL D/CRISIL D Issuer not cooperating'.
Set up in 2006 as a proprietorship firm by Mr. Tejal Shah, JSI
trades in carbon steel plates. The firm is based in Mumbai.
LUMENS INDIA: CRISIL Reaffirms B+ Rating on INR2.0cr Demand Loan
----------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable/CRISIL A4'
ratings on the bank facilities of Lumens India.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Packing Credit 8 CRISIL A4 (Reaffirmed)
Proposed Bill
Discounting
Facility 0.5 CRISIL B+/Stable (Reaffirmed)
Working Capital
Demand Loan 2 CRISIL B+/Stable (Reaffirmed)
The ratings continue to reflect the firm's modest scale of
operations, large working capital requirement and susceptibility to
intense competition. These weaknesses are partially offset by the
extensive experience of the partners in the leather and leather
goods industry.
Key Rating Drivers & Detailed Description
Weakness:
* Susceptibility to intense competition: The operating margin and
revenue of entities in this segment are susceptible to intense
competition, primarily from unorganised players.
* Modest scale of operations: Business is constrained by the modest
scale of operations in the intensely competitive leather and
leather goods industry, which will continue to limit the firm's
operating flexibility.
* Large working capital requirement: Gross current assets were
sizeable at 340-443 days over the three fiscals through 2022 (at
340 days as on March 31, 2022). Furthermore, due to business need,
a large inventory is maintained.
Strength:
* Extensive experience of the partners: The partners' industry
experience of nearly four decades, robust understanding of market
dynamics and strong relationships with suppliers and customers
should continue to support the business.
Liquidity: Poor
Bank limit utilisation averaged a high 99.38% over the 12 months
through July 2022. Cash accrual is expected to be over INR0.31
crore, which is barely sufficient to meet term debt obligation of
INR0.28-0.30 crore over the medium term.
Current ratio was estimated to be moderate at 1.87 times as on
March 31, 2022.
Outlook Stable
CRISIL Ratings believes Lumens India will continue to benefit from
the extensive industry experience of its partners and established
relationships with clients.
Rating Sensitivity factors
Upward factors
* A 20% increase in revenue and stable operating margin, leading to
higher cash accrual
Improvement in working capital cycle
Downward factors
* Decline in operating profitability by more than 20 basis points,
leading to net cash accrual of less than INR0.30 crore
* Large, debt-funded capital expenditure, weakening the capital
structure
* Significant increase in working capital requirement, constraining
liquidity and financial risk profile
Lumens India is a partnership concern of Bagaria family members. It
is based in Kolkata, West Bengal, and manufactures leather
products.
MAHESH INDUSTRIES: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Mahesh
Industries Private Limited (MIPL) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12 CRISIL D (Issuer Not
Cooperating)
Foreign Letter 60 CRISIL D (Issuer Not
of Credit Cooperating)
CRISIL Ratings has been consistently following up with MIPL for
obtaining information through letters and emails dated July 12,
2022 and September 14, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MIPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
For arriving at the ratings, CRISIL Ratings has combined the
business and financial risk profiles of Mahesh Timber Pvt Ltd
(MTPL), its 100% subsidiary Mahesh Timber Singapore Pte Ltd (MTSL),
and MIPL. This is because the companies, collectively referred to
as the Mahesh group, have a common management and are in related
lines of business.
MTPL, incorporated in 1998, trades in hardwood timber imported from
Malaysia. The company has sawmill operations in Gandhidham, where
timber logs imported at Kandla Port (both in Gujarat) are sawn and
then sold to timber traders in Haryana, Delhi, Punjab, Uttar
Pradesh, and other states. MIPL trades in softwood imported from
Europe and sells the sawn timber to traders and retailers in the
domestic market. MIPL operates around 22 sawmills whereas MTPL
operates around 10 sawmills.
MAHESH TIMBER: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Mahesh Timber
Private Limited (MTPL) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12 CRISIL D (Issuer Not
Cooperating)
Cash Credit 12 CRISIL D (Issuer Not
Cooperating)
Cash Credit 36 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 10 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 5 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 5 CRISIL D (Issuer Not
Cooperating)
Standby Line 40.5 CRISIL D (Issuer Not
of Credit Cooperating)
Standby Line 40.5 CRISIL D (Issuer Not
of Credit Cooperating)
Standby Line 81 CRISIL D (Issuer Not
of Credit Cooperating)
CRISIL Ratings has been consistently following up with MTPL for
obtaining information through letters and emails dated July 12,
2022 and September 14, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MTPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MTPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MTPL continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
For arriving at the ratings, CRISIL Ratings has combined the
business and financial risk profiles of MTPL, its 100% subsidiary
Mahesh Timber Singapore Pte Ltd (MTSL), and Mahesh Industries Pvt
Ltd (MIPL). This is because the companies, collectively referred to
as the Mahesh group, have a common management and are in related
lines of business.
MTPL, incorporated in 1998, trades in hardwood timber imported from
Malaysia. The company has sawmill operations in Gandhidham, where
timber logs imported at Kandla Port (both in Gujarat) are sawn and
then sold to timber traders in Haryana, Delhi, Punjab, Uttar
Pradesh, and other states. MIPL trades in softwood imported from
Europe and sells the sawn timber to traders and retailers in the
domestic market. MIPL operates around 22 sawmills whereas MTPL
operates around 10 sawmills.
MARIYA SHIP: CRISIL Reaffirms B+ Rating on INR4cr Cash Loan
-----------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable/CRISIL A4'
ratings to the bank facilities of Mariya Ship Breaking Private
Limited (MSBPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 13 CRISIL A4 (Reaffirmed)
Letter of Credit 18 CRISIL A4 (Reaffirmed)
On October 17, 2022, CRISIL Ratings had assigned its CRISIL
B+/Stable/CRISIL A4 ratings to the bank facilities of MSBPL.
The ratings reflect MSBPL's modest scale of operations driven by
cyclical and fragmented ship-breaking industry and vulnerability to
changes in government regulations. These weaknesses are partially
offset by its extensive industry experience of the promoters.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operation: MSBPL's business profile is
constrained by its scale of operations in the intensely competitive
Ship Breaking industry. The company's small scale of operations
will continue limit its operating flexibility. The revenues have
been modest and volatile in range of INR14.9 -30.4 crores over past
three fiscals through fiscal 2022. For fiscal 2023, the revenues
are estimated to be around INR1.5 crores for first five months.
Further, in the ship breaking industry, the revenues are contingent
to availability of ship for breaking. Healthy revenue growth aided
by availability of ships for breaking will remain monitorable
factor.
* Exposure to risks related to cyclicality, intense competition and
volatility in scrap prices and forex rates: The shipbreaking
industry is cyclical, and the viability of the business is
inversely correlated with the international freight index. Domestic
players also face competition from shipbreakers in China,
Bangladesh and Pakistan. Furthermore, while ships are purchased in
foreign currency (US dollars), payments are realised in domestic
currency (Indian rupee). Though the company uses forwards to hedge
the risk, the cover is partial, and positions are taken based on
expectations of the management on movements in forex rates.
Fluctuations in scrap rates during the period of ship breaking
severely impacts operating margin. The industry also remains
susceptible to risks associated with changes in applicable
regulatory norms.
Strengths:
* Extensive experience of promoters: The promoters have more two
decades of experience in the shipbreaking industry; their strong
understanding of market dynamics and established relationships with
suppliers and customers will continue to support the business risk
profile. The company has already dismantled around 50 ships.
Extensive experience of promoters will help the company to grow its
business over medium term.
Liquidity: Stretched
Fund-based bank limit utilization remains nil for past 12 months
through August 2022 in absence of any major ship purchase. Modest
cash accruals of around INR20-36 lakhs over medium term is
sufficient against term debt obligation of around INR3 lakhs.
Current ratio is healthy at 5.97 times on March 31, 2022.
Promoter's fund support will be available during any exigency.
Currently company has no outstanding LC in absence of any ship
available for breaking.
Outlook: Stable
CRISIL Ratings believes that MSBPL will continue to benefit from
the extensive experience of its promoter, and established
relationships with clients.
Rating Sensitivity factors
Upward factors
* Sustained and significant improvement in scale of operation by
60% and sustenance of operating margin, leading to higher cash
accruals.
* Improvement in financial risk profile especially networth
Downward factors
* Sustained decrease in scale of operations by 30%
* Witnesses a substantial increase in its working capital
requirements thus weakening its liquidity & financial profile.
Incorporated in 1996, Mariya Ship Breaking Private Limited (MSBPL)
is a private limited company engaged in ship breaking. It operates
from Alang in Bhavnagar, Gujarat. The company is promoted by Mr.
Satyapal Singhal. The company has broken 50 ships till date.
MINI DIAMONDS: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Mini Diamonds
India Limited (MDIL) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL D (Issuer Not
Cooperating)
Export Packing 6 CRISIL D (Issuer Not
Credit & Export Cooperating)
Bills Negotiation/
Foreign Bill
discounting
Proposed Long Term 1 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with MDIL for
obtaining information through letters and emails dated July 12,
2022 and September 28, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MDIL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MDIL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MDIL continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
MDIL, incorporated in 1987 by Mr. Upendra Shah and Mr. Himanshu
Shah, manufactures and trades in cut and polished diamonds, and
trades in rough diamonds.
NASCENT COMMUNICATION: Liquidation Process Case Summary
-------------------------------------------------------
Debtor: Nascent Communication Private Limited
Pankaj Tower 1 Basement
G Block Community Center
Near Pvr Cinema Vikaspuri
New Delhi 110018
Liquidation Commencement Date: October 26, 2022
Court: National Company Law Tribunal, New Delhi Bench V
Date of closure of
insolvency resolution process: October 19, 2022
Insolvency professional: Ravi Bansal
Interim Resolution
Professional: Ravi Bansal
308 Adarsh Complex
03 Community Centre
Wazirpur Indusrtial Area
New Delhi, Delhi 110052
E-mail: ipravibansal@gmail.com
ncpl.cirp@gmail.com
Last date for
submission of claims: November 25, 2022
NAVANIDHI ELECTRONICS: CRISIL Keeps D Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Navanidhi
Electronics Private Limited (NEPL) continue to be 'CRISIL D/CRISIL
D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 3.85 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 2 CRISIL D (Issuer Not
Cooperating)
Open Cash Credit 7.65 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with NEPL for
obtaining information through letters and emails dated July 12,
2022 and September 14, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of NEPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on NEPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
NEPL continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
NEPL was set up as a partnership firm named NNE in 1983, and got
its current name in 1984. NNE was engaged in design, development,
manufacture and testing of amplifiers, filters, broadband antennae,
power combiners /dividers and telecom masts. Mr. Adithe Ramanadha
Sastry is the promoter. The manufacturing and assembly facility is
based in Hyderabad.
NIKHIL FOOTWEARS: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Nikhil
Footwears Private Limited (NFPL) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 50 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 20 CRISIL D (Issuer Not
Cooperating)
Standby Letter 3 CRISIL D (Issuer Not
of Credit Cooperating)
Term Loan 7.64 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with NFPL for
obtaining information through letters and emails dated July 12,
2022 and September 14, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of NFPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on NFPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
NFPL continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
NFPL, established in 1987, is promoted and managed by Mr. Naresh
Agarwal. The company manufactures footwear at its facilities in
Kundli and Bahadurgarh, both in Haryana.
OMC POWER: CRISIL Raises Rating on INR30cr NCD to B+
----------------------------------------------------
CRISIL Ratings has upgraded its rating on the non-convertible
debentures of OMC Power Private Limited (OMC Power) to 'CRISIL
B+/Stable' from 'CRISIL B-/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Non Convertible 30.0 CRISIL B+/Stable (Upgraded
Debentures LT from 'CRISIL B-/Stable')
The upgrade factors in the significant improvement in the financial
risk profile of the company, as indicated by the increase in
networth to INR114.7 crore as on March 31, 2022, from INR52 crore a
year earlier. The networth is expected to rise to above INR300
crore as on March 31, 2023, on account of capital investments of
INR66.7 crore by Mitsui & Co Ltd in fiscal 2022 and INR217.97 crore
by Chubu Electric Power Ltd in fiscal 2023. Therefore, the capital
structure has been healthy, with gearing expected below 0.2 time as
on March 31, 2023, as against 0.68 time a year earlier and 1.60
time as on March 31, 2021. The capital infusion will improve debt
servicing capability and help fund capital expenditure (capex)
without raising significant debt.
The rating continues to reflect the modest scale of operations of
OMC Power, continued operating losses and dependence on external
funding to service debt. These weaknesses are partially offset by
the benefits the company derives from its experienced management,
funding support from the shareholders and the availability of
additional credit opportunities.
Analytical Approach
Compulsory convertible preference shares (CCPS) of INR66.7 crore as
on March 31, 2022, have been treated as equity as they will be
converted to equity in the near term.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations: Operating income was modest at
INR16.44 crore in fiscal 2022, though up from INR15.40 crore in
fiscal 2020 because of more operational power plants (around 280 as
on September 30, 2022, as against around 100 at the beginning of
fiscal 2020). The company had sales of around INR10 crore in the
first half of fiscal 2023 and operating revenue is expected at
INR21-22 crore for the full fiscal.
* Continued operating losses: Losses at the earnings before
interest, tax, depreciation and amortisation (Ebitda) level
continue, owing to the modest scale of operations vis-a-vis
sizeable administrative and corporate expenses. The company
incurred an operating loss of INR7.30 crore in fiscal 2022 as
against INR2.70 crore in fiscal 2021. Profit on sale of fixed
assets and interest on bank deposits offset the losses to some
extent. OMC Power is likely to turn profitable in the medium term
as it scales up operations backed by ramp-up of solar plants
installed in the two fiscals through 2022 and proposed capex.
* Dependence on external credit funding: OMC Power remains
dependent on external borrowings and funding to meet its debt
obligation as well as for capex of new plants to achieve economies
of scale. The company has debentures of INR6.73 crore post
restructuring, in addition to other term loans, and has sought to
raise funds through CCPS and allotment of equity shares in fiscals
2022 and 2023 to meet its debt obligations.
Strengths:
* Benefits from the experience of the management: The management
and promoters have extensive experience in diversified businesses,
and have provided the company with strategic tie-ups and
operational expertise, and helped raise equity funding and external
borrowings.
* Funding support from the shareholders and availability of
additional credit opportunities: The company receives funding
support from shareholders, and has additional borrowing
opportunities to cater to its expansion plans and for servicing
debt amidst operating losses. It received INR66.70 crore in fiscal
2022 in the form of CCPS from Mitsui & Co Ltd and INR217.97 crore
from Chubu Electric Power through allotment of equity shares and
CCPS in fiscal 2023.
Liquidity: Poor
Liquidity is constrained by operating losses and reliance on
external funding to meet working capital requirement and capex. Net
cash accrual was negative INR10.2 crore in fiscal 2022 and is
expected at negative INR3-5 crore in fiscal 2023, which will
continue to put pressure on liquidity. However, the company had
over INR200 crore of free cash and bank balance as on September 30,
2022, in the form of fixed deposit reserves, which will likely be
used to service debt and fund capex. The current ratio stood at
2.16 times as on March 31, 2022.
Outlook: Stable
CRISIL Ratings believes OMC Power will continue to benefit from the
extensive experience of its management.
Rating Sensitivity Factors
Upward factors
* Timely commercialisation and ramp-up of capex, leading to
sustained revenue growth of 20-25% and positive operating margin
resulting in positive cash accrual
* Significant reduction in debt or infusion of capital, improving
the financial risk profile
Downward factors
* Decline in revenue by more than 10% and continued operating
losses putting pressure on liquidity
* Delay in servicing debt repayment obligations even by one day
from the pre-agreed date or Large, debt-funded capex weakening the
capital structure and liquidity
OMC Power was incorporated in 2011 by OMC Televentures Pvt Ltd
(formerly, Artheon Televentures Pvt Ltd), which is the majority
shareholder in the company. OMC Power operates around 280 solar
minigrid plants (off-grid and on-grid photovoltaic hybrid solar
diesel power systems) of 30-75 KW capacity across nine districts
with little or no grid connectivity in Uttar Pradesh and Bihar. End
users include telecom companies, small and medium enterprises,
small commercial establishments and rural households.
PROFISOR SERVICES: Liquidation Process Case Summary
---------------------------------------------------
Debtor: M/s Profisor Services Private Limited
109, Wing-1, Hans Bahawan
Bahadur Shah Zafar Marg
New Delhi 110002
Liquidation Commencement Date: October 28, 2022
Court: National Company Law Tribunal, New Delhi Bench-V
Date of closure of
insolvency resolution process: October 18, 2022
Insolvency professional: Arunesh Kumar Dubey
Interim Resolution
Professional: Arunesh Kumar Dubey
302, E-21, Mahesh Bhawan
Jawahar Park, Laxmi Nagar
Delhi 92
E-mail: csarunesh@gmail.com
cirp.profisor21@gmail.com
Last date for
submission of claims: November 18, 2022
SEVENHILLS HEALTHCARE: CRISIL Keeps D Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of SevenHills
Healthcare Private Limited (SHPL) continue to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Funded Interest 56.44 CRISIL D (Issuer Not
Term Loan Cooperating)
Overdraft Facility 50 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 98.92 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Proposed Long Term 7.89 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 14.06 CRISIL D (Issuer Not
Cooperating)
Term Loan 27.3 CRISIL D (Issuer Not
Cooperating)
Term Loan 55.17 CRISIL D (Issuer Not
Cooperating)
Term Loan 16.84 CRISIL D (Issuer Not
Cooperating)
Term Loan 17.84 CRISIL D (Issuer Not
Cooperating)
Term Loan 23.67 CRISIL D (Issuer Not
Cooperating)
Term Loan 23.59 CRISIL D (Issuer Not
Cooperating)
Term Loan 28.66 CRISIL D (Issuer Not
Cooperating)
Term Loan 16.33 CRISIL D (Issuer Not
Cooperating)
Term Loan 214.75 CRISIL D (Issuer Not
Cooperating)
Term Loan 47.84 CRISIL D (Issuer Not
Cooperating)
Term Loan 24.06 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SHPL for
obtaining information through letters and emails dated July 12,
2022 and September 14, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SHPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SHPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SHPL continues to be 'CRISIL D Issuer Not Cooperating'.
SHPL, incorporated in 2004, is currently operating two
super-speciality hospitals under the name of Sevenhills Hospital;
one is in in Visakhapatnam (Andhra Pradesh) and other in Andheri,
Mumbai. Sevenhills Hospital, Visakhapatnam was started in 1988 by
Sevenhills Hospitals Pvt Ltd, which was later merged with SHPL in
2009. Sevenhills Hospital, Mumbai, commenced operations in 2009.
SHPL is currently promoted by Dr. Jitendra Das Maganti, his wife,
Dr. Renuka Jitendra Maganti, and AIRRO (Mauritius) Holdings I,
Mauritius (AIRRO; a fund affiliated to JP Morgan).
SIRSA BANSIVAT: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of The Sirsa
Bansivat Labour And Construction Private Limited (Sirsa) continue
to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2.5 CRISIL D (Issuer Not
Cooperating)
Bank Guarantee 4.5 CRISIL D (Issuer Not
Cooperating)
Cash Credit 3.0 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with Sirsa for
obtaining information through letters and emails dated July 12,
2022 and September 14, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of Sirsa, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on Sirsa
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
Sirsa continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Set up in 2005, Sirsa offers manpower to various electricity
departments in Haryana and Rajasthan. The company has contracts
with Dakhin Haryana Bijli Vitran Nigam, Haryana Vidyut Prasaran
Nigam Ltd, Uttar Haryana Bijli Vitran Nigam, Ajmer Vidyut Vitran
Nigam Ltd, Jodhpur Vidyut Vitran Nigam Ltd, and other government
departments.
SOHRAB TEXTILE: Liquidation Process Case Summary
------------------------------------------------
Debtor: M/s Sohrab Textile Mills Limited
Nabha Road, Malerkotla
Distt. Sangrur
Malerkotla PB 147201
IN
Liquidation Commencement Date: October 28, 2022
Court: National Company Law Tribunal, Chandigarh Bench
Date of closure of
insolvency resolution process: October 27, 2022
Insolvency professional: Mr. Prem Chand Goyal
Interim Resolution
Professional: Mr. Prem Chand Goyal
House No. 1-F
Adjoining Municipal House
Model Town, Patiala
Punjab 147001
Mobile: 9813621782
E-mail: pcg47758@gmail.com
- and -
SCO 2935-36, First Floor
Sector 22 C, Chandigarh 160022
E-mail: ip.sohrab@gmail.com
Last date for
submission of claims: November 27, 2022
SR FOILS: CRISIL Keeps D Debt Ratings in Not Cooperating Category
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of SR Foils and
Tissue Limited (SRFTL) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 13 CRISIL D (Issuer Not
Cooperating)
Cash Credit 3 CRISIL D (Issuer Not
Cooperating)
Cash Credit 9 CRISIL D (Issuer Not
Cooperating)
Cash Credit 8 CRISIL D (Issuer Not
Cooperating)
Cash Credit 20 CRISIL D (Issuer Not
Cooperating)
Cash Credit 2 CRISIL D (Issuer Not
Cooperating)
Cash Credit 18 CRISIL D (Issuer Not
Cooperating)
Cash Credit 40 CRISIL D (Issuer Not
Cooperating)
Cash Credit 10 CRISIL D (Issuer Not
Cooperating)
Cash Credit 15 CRISIL D (Issuer Not
Cooperating)
Cash Credit 2 CRISIL D (Issuer Not
Cooperating)
Cash Credit 15 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 12 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 5 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 8 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 25 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 5 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 15 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 7 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 10 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 3 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 5 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 10 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 10 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 5 CRISIL D (Issuer Not
Cooperating)
Term Loan 14 CRISIL D (Issuer Not
Cooperating)
Term Loan 32 CRISIL D (Issuer Not
Cooperating)
Term Loan 22 CRISIL D (Issuer Not
Cooperating)
Term Loan 8 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SRFTL for
obtaining information through letters and emails dated July 12,
2022 and September 14, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SRFTL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SRFTL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SRFTL continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Incorporated in 1993, SRFTL (formerly SR Foils Ltd) manufactures
aluminium foils (under the Homefoil brand), cling film rolls (Clean
Wrap), and tissue paper products (Mistique). The company has two
manufacturing units, one in Bhiwadi and another in Sotanala, both
in Rajasthan.
TEXRIO TEXTILES: Voluntary Liquidation Process Case Summary
-----------------------------------------------------------
Debtor: Texrio Textiles Private Limited
F-72, 104 Suryoday Building
Subhash Marg, C-Scheme
Jaipur, Rajasthan 302001
India
Liquidation Commencement Date: October 21, 2022
Court: National Company Law Tribunal, Bengaluru Bench
Insolvency professional: Srilakshmi Purushotham
Interim Resolution
Professional: Srilakshmi Purushotham
No. 41, Patalamma Temple Street
Basavanagudi, Near South End Circle
Bengaluru 560004
Karnataka, India
E-mail: sri@gurujana.com
Tel: 08042202020
Last date for
submission of claims: November 20, 2022
TMR DEVELOPERS: CRISIL Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of TMR Developers
Private Limited continues to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 18 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with TMR for
obtaining information through letters and emails dated July 12,
2022 and September 14, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of TMR, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on TMR
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
TMR continue to be 'CRISIL D Issuer Not Cooperating'.
Established in August 2012, TMR is engaged in residential real
estate construction business in Bangalore, Karnataka. The company
has two on-going projects under the name 'Tulips Blossoms and
Tulips Orchids. The company is promoted by Mr.T.Madhava Rao and
Ms.T.V.Venkata Sirisha who are the directors. The day to day
operations are managed by Mr. T.Madhava Rao.
UBER TECHLABS: Voluntary Liquidation Process Case Summary
---------------------------------------------------------
Debtor: Uber Techlabs Private Limited
Knowledge City, 7th Floor
Plot No. 2, Phase 1
Survey No. 83/1 Raidurg Village
Serilingampally, Hyderabad
Rangareddi, Telangana 500081
India
Liquidation Commencement Date: October 26, 2022
Court: National Company Law Tribunal, Bangalore Bench
Insolvency professional: Kondisetty Kumar Dushyantha
Interim Resolution
Professional: Kondisetty Kumar Dushyantha
#404/2, 7th Main, 9th Cross
Jayanagar II Block
Bangalore 560011
E-mail: dushyanthak@gmail.com
Tel: 08026560400
Last date for
submission of claims: November 25, 2022
UNITED INDIA: Liquidation Process Case Summary
----------------------------------------------
Debtor: United India Shoe Corporation Private Limited
Old No. 4, New No. 16, 2nd Floor
Salal Street, Choolai
Chennai 600112
Liquidation Commencement Date: October 27, 2022
Court: National Company Law Tribunal, Special Bench-II, Chennai
Date of closure of
insolvency resolution process: June 14, 2019
Insolvency professional: Kathiresan Nachimuthu
Interim Resolution
Professional: Kathiresan Nachimuthu
'RAJI' 3B1, 3rd Floor
Galety Palace, No. 1L
Blackers Road, Mount Road
Chennai 600002
Tamil Nadu
E-mail: kathir.fca@outlook.com
Last date for
submission of claims: November 26, 2022
VARDHAN AGRO: CRISIL Moves D Debt Ratings to Not Cooperating
------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Vardhan Agro Processing Limited (VAPL) to 'CRISIL D/CRISIL D Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.32 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 18 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Fund-
Based Bank Limits 1.85 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Term Loan 28.83 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
In accordance with the terms of the rating agreement with VAPL
CRISIL Ratings has sent repeated reminders for payment of fees
towards the surveillance exercise through letters and emails dated
August 12, 2022 and October 13, 2022 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/ reviewed with
the suffix 'ISSUER NOT COOPERATING'.
On account of lack of management cooperation towards non-payment of
fees, CRISIL Ratings has migrated the rating on bank facilities of
VAPL to 'CRISIL D/CRISIL D Issuer not cooperating'.
VAPL, was incorporated in 2011. It is engaged in manufacturing of a
wide range of cane jaggery, jaggery powder, sulphurless khandasari
sugar, etc. It has manufacturing facility located in Satara,
Maharashtra, having an annual capacity of 1500 Metric ton per day.
It has started its commercial production from January 2018 and
promoted by Kadam family.
VISHWAKARMA AUTO: CRISIL Moves B+ Rating from Not Cooperating
-------------------------------------------------------------
Due to inadequate information and in line with the guidelines of
Securities and Exchange Board of India, CRISIL Ratings had migrated
its rating on the long-term bank facilities of Vishwakarma
Automotive Pvt Ltd (VAPL) to 'CRISIL B+/Stable; Issuer not
cooperating'. However, the management has subsequently started
sharing requisite information for carrying out a comprehensive
review of the rating. Consequently, CRISIL Ratings is migrating its
rating on the long-term bank facilities of VAPL to 'CRISIL
B+/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7.5 CRISIL B+/Stable (Migrated from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Cash Credit 1.9 CRISIL B+/Stable (Migrated from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Long Term Loan 5.76 CRISIL B+/Stable (Migrated from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Long Term Loan 6.96 CRISIL B+/Stable (Migrated from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Proposed Long Term 1.28 CRISIL B+/Stable (Migrated from
Bank Loan Facility 'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Working Capital 6.14 CRISIL B+/Stable (Migrated from
Term Loan 'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Revenue should increase to an expected INR90 crore in fiscal 2023
from INR70 crore in fiscal 2022, backed by continuous demand from
key customers, including Ashok Leyland; revenue of INR46 crore has
been reported till September 2022 of this fiscal. Working capital
cycle has been stretched, with gross current assets (GCAs) of 118
days as on March 31, 2022 and projected at 130-140 days over the
medium term. Financial risk profile remains average, with networth
expected at a modest INR15.25 crore and total outside liabilities
to adjusted networth ratio high at 3.20 times as on March 31,
2023.
The rating continues to reflect exposure to intense competition and
volatility in raw material cost and large working capital
requirement. These weaknesses are partially offset by extensive
experience of the promoters in the automotive (auto) components and
ancilliary industry.
Key rating drivers and detailed description
Weaknesses
* Exposure to intense competition and volatility in raw material
prices: Intense competition limits the ability of the company to
pass on any hike in raw material cost, thereby constraining
profitability; industry slowdown and subdued demand further
restrict the operating margin. Moreover, average scale (expected at
INR90 crore in fiscal 2023 against INR70 crore in fiscal 2022)
results in modest financial flexibility.
* Large working capital requirement: GCAs have been 118-198 days
over the past three fiscals and are projected at around 130 days as
on March 31, 2023. The company needs to extend long credit period
to combat competition and hold huge work in process and inventory
to meet business needs.
Strength
* Extensive experience of the promoters: The promoters have more
than two decades of experience in the auto components and
ancilliary industry; their strong understanding of market dynamics
and healthy relationships with customers and suppliers should
continue to support the business. The company has longstanding
relationship with the key customer, Ashok Leyland.
Liquidity: Stretched
Bank limit utilisation was high at around 96% for the 12 months
through September 2022. Cash accrual is projected at more than
INR5.5-7.0 crore per annum, against term debt obligation of
INR3.0-4.0 crore over the medium term. Current ratio was moderate
at 1.15 times on March 31, 2022. The promoters are likely to extend
funds (equity and unsecured loans) to meet working capital
requirement.
Outlook: Stable
VAPL will continue to benefit from extensive experience of its
promoters and their established relationship with clients.
Rating sensitivity factors
Upward factors
* Revenue growth of 20% per annum and steady operating margin,
leading to cash accrual more than INR5 crore
* Improvement in the working capital cycle, with GCAs dropping
below 110 days
* Gearing moderating to less than 2 times
Downward factors
* Revenue declining by 25% each fiscal and profitability margin
falling below 8 %, resulting in cash accrual lower than INR3 crore
* Further stretch in the working capital cycle
Incorporated in 1999 and based in Faridabad, Haryana, VAPL is
managed by Mr. Ashwani Kumar, Mr. Parveen Kumar, Mr. Rajinder
Kumar, and Mr. Keshav Dhamija. The company manufactures castings
such as grey cast iron and ductile iron machined castings.
VODAFONE IDEA: Clearing Bank Dues First to Avoid Bankruptcy
-----------------------------------------------------------
The Economic Times reports that loss-making Vodafone Idea (Vi) is
prioritising clearing its dues to banks and financial institutions
over vendor payments to possibly avoid getting dragged to the
bankruptcy court, if the telco was to face such a situation in the
future, industry executives and legal experts said.
ET relates that the cash-strapped telecom operator, they said,
would be aware that banks, in their capacity as financial
creditors, could directly take a company that had defaulted on a
payment to the National Company Law Tribunal (NCLT), which is the
dedicated bankruptcy court, without any prior notice under the
Insolvency & Bankruptcy Code.
Vodafone Idea Limited operates as a telecom service provider. The
Company offers 2G, 3G, and 4G mobile services, as well as mobile
payments, advanced enterprise offerings, and entertainment.
Vodafone Idea serves customers in India.
Y PANI AND COMPANY: Liquidation Process Case Summary
----------------------------------------------------
Debtor: Y. Pani and Company Pvt. Ltd.
A-1, Banaphool House
Budha Nagar, Bhubaneswar
Odisha 751006
Liquidation Commencement Date: November 2, 2022
Court: National Company Law Tribunal, Cuttack Bench
Date of closure of
insolvency resolution process: September 26, 2022
Insolvency professional: Umesh Chandra Sahoo
Interim Resolution
Professional: Umesh Chandra Sahoo
Plot No. 04, 2nd Floor
Snowdrop Apartment
Cuttack Road, Jharpada
Bhubaneshwar 751006
Odisha
E-mail: info@nayadarshan.com
ypani@nayadarshan.com
Last date for
submission of claims: November 30, 2022
=====================
N E W Z E A L A N D
=====================
ALEXANDRA JAMES: Court to Hear Wind-Up Petition on Nov. 11
----------------------------------------------------------
A petition to wind up the operations of Alexandra James Limited
will be heard before the High Court at New Plymouth on Nov. 11,
2022, at 2:15 p.m.
The Commissioner of Inland Revenue filed the petition against the
company on Aug. 10, 2022.
The Petitioner's solicitor is:
Charles David Walmsley
Inland Revenue, Legal Services
21 Home Straight
PO Box 432
Hamilton
PROPELLOR PROPERTY: Creditors' Proofs of Debt Due on Dec. 16
------------------------------------------------------------
Creditors of Propellor Property Services Limited and Metropolis
Design Limited are required to file their proofs of debt by Dec.
16, 2022, to be included in the company's dividend distribution.
The High Court at Christchurch appointed Elizabeth Helen Keene and
Luke Norman of KPMG as liquidators on Nov. 2, 2022.
SOCIAL GROUP: Court to Hear Wind-Up Petition on Nov. 18
-------------------------------------------------------
A petition to wind up the operations of The Social Group Limited
will be heard before the High Court at Auckland on Nov. 18, 2022,
at 10:00 a.m.
APRA New Zealand Limited filed the petition against the company on
Sept. 23, 2022.
The Petitioner's solicitor is:
Tim Mullins
LeeSalmonLong
Level 16, Vero Centre
48 Shortland Street
Auckland 1010
STARBRIGHT CLEANING: Court to Hear Wind-Up Petition on Nov. 11
--------------------------------------------------------------
A petition to wind up the operations of Starbright Cleaning Limited
will be heard before the High Court at Nelson on Nov. 11, 2022, at
11:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Sept. 5, 2022.
The Petitioner's solicitor is:
Deepika Belinda Padmanabhan
Legal Services
11 Jepsen Grove
Wallaceville
Upper Hutt 5018
TROJAN RIGGING: Creditors' Proofs of Debt Due on Nov. 30
--------------------------------------------------------
Creditors of Trojan Rigging Soloutions Limited are required to file
their proofs of debt by Nov. 30, 2022, to be included in the
company's dividend distribution.
The High Court at Auckland appointed Steven Khov and Kieran Jones
of Khov Jones Limited as liquidators on Nov. 2, 2022.
=================
S I N G A P O R E
=================
BASP INTERNATIONAL: Court Enters Wind-Up Order
----------------------------------------------
The High Court of Singapore entered an order on Oct. 28, 2022, to
wind up the operations of BASP International Pte. Ltd.
Golden Barley International Pte Ltd filed the petition against the
company.
The company's liquidator is:
Yiong Kok Kong
AVIC DKKY Pte. Ltd.
180 Cecil Street
#12-04 Bangkok Bank Building
Singapore 069546
CLYDESBUILT INVESTMENT: Placed in Provisional Liquidation
---------------------------------------------------------
Mr. Tee Wey Lih of Acres Advisory Pte. Ltd. on Nov. 1, 2022, was
appointed as provisional liquidator of Clydesbuilt Investment Pte
Ltd.
FUCOM CONSTRUCTION: Court to Hear Wind-Up Petition on Nov. 25
-------------------------------------------------------------
A petition to wind up the operations of Fucom Construction Pte Ltd
will be heard before the High Court of Singapore on Nov. 25, 2022,
at 10:00 a.m.
The Hongkong And Shanghai Banking Corporation Limited filed the
petition against the company on Nov. 4, 2022.
The Petitioner's solicitors are:
Shook Lin & Bok LLP
1 Robinson Road
#18-00, AIA Tower
Singapore 048542
PADWELL PTE: Commences Wind-Up Proceedings
------------------------------------------
Members of Padwell Pte Ltd, on Nov. 8, 2022, passed a resolution to
voluntarily wind up the company's operations.
The company's liquidator is:
Tham Chee Soon
iCFO Advisors Pte Ltd
10 Anson Road
#33-10 International Plaza
Singapore 079903
PIANIST STUDIO: Court to Hear Wind-Up Petition on Nov. 25
---------------------------------------------------------
A petition to wind up the operations of The Pianist Studio Holdings
Pte Ltd will be heard before the High Court of Singapore on Nov.
25, 2022, at 10:00 a.m.
United Overseas Bank Limited filed the petition against the company
on Nov. 1, 2022.
The Petitioner's solicitors are:
Adsan Law LLC
300 Beach Road
#26-00 The Concourse
Singapore 199555
SINGAPORE: SICC Amends Rules on Cross-border Corporate Insolvency
-----------------------------------------------------------------
Asia Business Law Journal's The Wrap reports that the Singapore
International Commercial Court (SICC) has amended its rules to hear
cross-border restructuring and insolvency matters, which took
effect on October 1, aiming to enhance the island country as an
international debt restructuring hub.
According to The Wrap, the key changes made by the Singapore
International Commercial Court (Amendment No. 2) Rules 2022 are an
amendment to Order 21 of the Singapore International Commercial
Court Rules 2021 (SICC Rules) and the addition of a new order 23A
of the SICC Rules.
These changes introduce new processes in the SICC relating to
corporate insolvency, restructuring or dissolution proceedings that
are international and commercial in nature, and offer restructuring
outcomes that would appeal to both debtors and creditors.
The Wrap relates that Patrick Ang, the managing partner of
Singapore law firm Rajah & Tann, said the key challenges in dealing
with cross-border insolvency and restructuring proceedings are
dealing with diverse legal systems, different levels of development
in the laws, and the lack of harmonisation among the various laws.
"The choice of jurisdiction to commence insolvency or restructuring
is an issue and there may be disagreement between the debtor and
creditors on the most appropriate forum," said Ang. "In this
region, in particular, the SICC offers a world-class, neutral,
transparent and predictable forum. The new SICC rules expressly
allow the court to hear cross-border insolvency and restructuring
cases."
The Wrap says the amended rules also allowed foreign counsel to
work together with Singapore counsel to facilitate the process. The
Legal Profession (Representation in Singapore International
Commercial Court) (Amendment No. 2) Rules 2022 facilitate the
participation of foreign lawyers in corporate insolvency,
restructuring and dissolution proceedings before the SICC.
However, Ang noted, the SICC Rules require a foreign company to
have a substantial connection with Singapore and a foreign element
before the court. For example, connection by way of asset or
business.
In terms of enforceability, Ang highlighted that an SICC judgment
primarily depends on the laws of the state in which enforcement is
sought, The Wrap relays.
"Parties should take note of the key jurisdictions that matter [for
example, where there are assets to protect] and come up with a plan
as soon as possible," said Ang. "The fact that the jurisdictions
have adopted the UNCITRAL Model Law, or whether the courts there
have applied general law to assist and recognise a foreign
judgment, will form some of the key considerations."
With the ongoing domestic and global uncertainties and challenges,
Ang anticipated to see more companies facing difficulties in the
coming year, the report notes.
"Increasing interest rates and growing inflationary pressures are
likely to pose significant issues for many businesses," said Ang.
"Locally and in Southeast Asia, we expect to see medium-sized
enterprises and highly leveraged businesses as relatively more
vulnerable. In the recent past, we have also seen a number of
crypto-related restructurings and insolvencies with regional
businesses and presence taking place in Singapore."
The Wrap says the general division of the Singapore High Court has
seen an increase in corporate insolvency filings related to
cryptocurrency markets. For example, Zipmex and Defi Payments of
the Vauld Group recently filed for moratorium protection. Foreign
representatives of the crypto hedge fund, Three Arrows Capital,
filed for recognition in Singapore of liquidation proceedings
commenced in the British Virgin Islands.
According to the report, the new rules will make it possible for
such proceedings that are commenced in the general division of the
Singapore High Court to be transferred to the SICC, if the
jurisdictional requirements are satisfied.
Previously in his opening remark during the SICC conference on
September 22, Edwin Tong, Minister for Culture, Community and Youth
and Second Minister for Law of Singapore, said lawyers representing
clients in certain insolvency cases before the SICC will be able to
enter into conditional fee agreements (CFAs) with their clients –
provided the insolvency proceeding has commenced in the SICC.
"Our framework in the Legal Profession Act and the Legal Profession
(Conditional Fee Agreement) Regulations 2022, supports the use of
CFAs in proceedings commenced in the SICC, while those proceedings
remain in the SICC, and appeals arising from those proceedings,"
the report quotes Tong as saying.
"For insolvency proceedings in the SICC, this is a notable and
positive evolution," Tong added. "It will provide an additional
funding option for debtors – on top of the existing avenues for
third-party funding that is currently available. It also levels the
playing field for Singapore lawyers vis-à-vis their foreign
counterparts by allowing them to also offer CFAs."
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2022. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
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thereof are US$25 each. For subscription information, contact
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*** End of Transmission ***