/raid1/www/Hosts/bankrupt/TCRAP_Public/221205.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
Monday, December 5, 2022, Vol. 25, No. 236
Headlines
A U S T R A L I A
ACCESS ELECTRICAL: First Creditors' Meeting Set for Dec. 8
AUSTRALIAN TECHNOLOGY: Moody's Withdraws 'B1' Corp. Family Rating
BOTHAR GROUP: OCP Asia Works Up DOCA for Group
CBD DEVELOPMENT: Second Creditors' Meeting Set for Dec. 7
CRIMSON BOND 2022-2P: S&P Assigns Prelim. B(sf) Rating on F Notes
FIVECO PTY: First Creditors' Meeting Set for Dec. 8
FOOD FOCUS: First Creditors' Meeting Set for Dec. 8
METIGY: Unpaid Migrant Workers Waiting on Luxury House Sales
NSW PLUMBING: First Creditors' Meeting Set for Dec. 8
RED RIVER: Cor Cordis Appointed as Voluntary Administrators
C H I N A
CHINA EVERGRANDE: Car Brand Hengchi Is Said to Cut 10% of Jobs
CHINA EVERGRANDE: Hui Sends Voice Message as Rumors Swirl
GOME RETAIL: Denies Bankruptcy Filing by Suppliers
SUNAC CHINA: Gets US$1.15BB Cash Injection for Shanghai Project
H O N G K O N G
LAI FUNG: Fitch Lowers LongTerm IDRs to 'B-', Outlook Negative
I N D I A
ADANI GREEN: S&P Raises Senior Secured Bonds Rating to 'BB+'
AJARA HEALTH: Ind-Ra Moves BB LT Issuer Rating to Non-Cooperating
ALPINE DISTILLERIES: Ind-Ra Keeps 'D' Rating in NonCooperating
AMRUT COTTON: ICRA Keeps B+ Debt Ratings in Not Cooperating
ANISH INFRACON: Ind-Ra Keeps BB Issuer Rating in NonCooperating
APM PROJECTS: ICRA Keeps B+ Debt Rating in Not Cooperating
ARWADE INFRASTRUCTURE: Ind-Ra Assigns BB+ LongTerm Issuer Rating
ATC FOODS: ICRA Keeps B+ Debt Ratings in Not Cooperating Category
BOLTMASTER (INDIA): ICRA Keeps D Debt Rating in Not Cooperating
DASHMESH AGRO: ICRA Keeps D Debt Rating in Not Cooperating
DASHMESH RICE: ICRA Keeps B Debt Rating in Not Cooperating
DEVI ENGINEERING: Ind-Ra Assigns BB- LongTerm Issuer Rating
HAMSA MINERALS: ICRA Keeps D Debt Ratings in Not Cooperating
HBS REALTORS: ICRA Keeps D Debt Rating in Not Cooperating
HEMJEE RICE: Ind-Ra Moves 'B+' LT Issuer Rating to Non-Cooperating
JASMER FOODS: Ind-Ra Affirms BB LongTerm Issuer Rating
K.C. TOOLROOM: ICRA Keeps B+ Debt Ratings in Not Cooperating
KASHIPUR SITARGANJ: Ind-Ra Keeps D Issuer Rating in NonCooperating
KHODAL COT-GIN: ICRA Keeps D Debt Ratings in Not Cooperating
KSC EDUCATIONAL: ICRA Keeps B+ Debt Ratings in Not Cooperating
M V AGRO: ICRA Keeps D Debt Ratings in Not Cooperating Category
MAHI CORPORATION: ICRA Keeps D Debt Ratings in Not Cooperating
MARUTI COTTON: ICRA Keeps D Debt Ratings in Not Cooperating
NOBLE EDUCATIONAL: ICRA Keeps D Debt Ratings in Not Cooperating
PANSARI STEELS: ICRA Keeps B+ Debt Ratings in Not Cooperating
PARAMOUNT INTERNATIONAL: ICRA Keeps D Rating in Not Cooperating
PARAMPUJYA SOLAR: S&P Affirms 'BB-' Rating on Senior Secured Bond
PRECISE AUTOMATION: Ind-Ra Moves B Rating to Non-Cooperating
QURESHI INTERNATIONAL: ICRA Keeps B+ Rating in Not Cooperating
RELIANCE INFRASTRUCTURE: Ind-Ra Affirms 'D' Long-Term Issuer Rating
RIDDHI SIDDH: ICRA Keeps D Debt Rating in Not Cooperating
S.K. AGROS: ICRA Keeps B Debt Ratings in Not Cooperating Category
SAANJ AUR: ICRA Keeps B+ Debt Rating in Not Cooperating Category
SIDDARTH ORGANISATION: ICRA Keeps B+ Ratings in Not Cooperating
SINDHU TRADE: Ind-Ra Keeps 'D' Issuer Rating in NonCooperating
TD TOLL: ICRA Keeps D Debt Rating in Not Cooperating Category
TK TOLL: ICRA Keeps D Debt Rating in Not Cooperating Category
VEDAMATHA ENTERPRISES: ICRA Keeps D Rating in Not Cooperating
VEERAJ CONSTRUCTION: ICRA Keeps D Debt Ratings in Not Cooperating
J A P A N
JAPAN: SMFG to Pour $1.5BB Into Helping Companies Turn Around
M A L A Y S I A
IMPIANA HOTELS: Unit Escapes Winding Up Petition Over Unpaid Sum
N E W Z E A L A N D
ABUSHMAN CONTRACTOR: Court to Hear Wind-Up Petition on Dec. 14
CONTACT CENTRES: Creditors' Proofs of Debt Due on Dec. 8
COROMANDEL LIMITED: Creditors' Proofs of Debt Due on Feb. 24
GO TO COLLECTION: PwC Appointed as Administrators
KAIMAHI MAORI: Court to Hear Wind-Up Petition on Dec. 14
S I N G A P O R E
AGV GROUP: Court Enters Wind-Up Order
PIANIST STUDIO: Court Enters Wind-Up Order
THALASSA ELPIDA: Creditors' Proofs of Debt Due on Jan. 2
THREE ARROWS: Founders Still Not Cooperating With Asset Recovery
V.SPEC ENGINEERING: Court to Hear Wind-Up Petition on Dec. 16
WING WAI: Court to Hear Wind-Up Petition on Dec. 16
S R I L A N K A
SRI LANKA: Fitch Lowers LongTerm Local Currency IDR to 'CC'
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A U S T R A L I A
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ACCESS ELECTRICAL: First Creditors' Meeting Set for Dec. 8
----------------------------------------------------------
A first meeting of the creditors in the proceedings of Access
Electrical (NSW) Pty Limited will be held on Dec. 8, 2022, at 11:00
a.m. at Level 1, 160 Pacific Highway in Charlestown and via virtual
meeting technology.
Paul William Gidley of Shaw Gidley was appointed as administrators
of the company on Dec. 8, 2022.
AUSTRALIAN TECHNOLOGY: Moody's Withdraws 'B1' Corp. Family Rating
-----------------------------------------------------------------
Moody's Investors Service has withdrawn the B1 corporate family
rating on Australian Technology Innovators Pty Limited and its
stable outlook.
RATINGS RATIONALE
Moody's has decided to withdraw the rating for its own business
reasons.
Australian Technology Innovators Pty Limited is a holding company
for Legal Search Pty Limited and is a premium cloud-based
Software-as-a-Service integrated search and services platform for
professionals.
BOTHAR GROUP: OCP Asia Works Up DOCA for Group
----------------------------------------------
Australian Financial Review reports that tunnelling services
company Bothar Group is likely to sail back into the hands of its
financier and shareholder OCP Asia, after a quick restructuring job
by FTI Consulting.
It is understood OCP Asia, which was represented on Bothar's board,
is in pole position to reclaim the company's Australian entities
via a deed of company arrangement that would re-set the group's
capital structure and give it a fresh financial start, according to
AFR.
AFR relates that sources said OCP Asia was already preparing the
DOCA and helping navigate the FTI-run process. It already knows the
business well, having been the group's biggest lender and one of
its largest investors for more than five years.
Should it pan out as anticipated, OCP Asia would take the keys of a
financially slimmed down and re-set Bothar Group in coming months.
Bothar's Australian entities went under earlier this month, with
FTI bigwigs Chris Hill and Vaughan Strawbridge among the advisers
appointed to find a solution once the board realised it had little
chance of meeting an upcoming debt maturity, AFR discloses. Ashurst
is working alongside FTI.
Bothar Group Pty Ltd last filed accounts in Australia for the year
to December 2020. The accounts showed its biggest liability was an
OCP finance loan worth nearly $100 million and due in January 2023,
AFR discloses. The loan also had warrants attached, giving OCP up
to a 22.29 per cent stake in the company.
AFR says the administrators' remit includes all of The Bothar
Group's Australian operations and entities, such as Bothar Group
Pty Ltd, Bothar Boring and Tunnelling (Australia) Pty Ltd and
Bothar Boring and Tunnelling Pty Ptd. he company's offshore arms,
including those in North America and the Middle East, were not
impacted.
The Bothar Group is a global subsurface engineering services
provider, specialising in the tunnelling industry. It was founded
in Sydney in 1990, starting with one boring machine, and expanded
to the Middle East in 2010.
CBD DEVELOPMENT: Second Creditors' Meeting Set for Dec. 7
---------------------------------------------------------
A second meeting of creditors in the proceedings of:
- CBD Development Group Pty Ltd;
- C & K Group Investments Pty Ltd;
- Chenli Pty Ltd;
- The Bentleigh Centre Pty Ltd;
- CBD Development Holdings Pty Ltd; and
- Chen Corporate Holdings Pty Ltd
has been set for Dec. 7, 2022, at 11:00 a.m. at the offices of Cor
Cordis, Level 29, 360 Collins Street in Melbourne.
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 Dec. 6, 2022, at 5:00 p.m.
Barry Wight and Sam Kaso of Cor Cordis were appointed as
administrators of the company on Dec. 7, 2022.
CRIMSON BOND 2022-2P: S&P Assigns Prelim. B(sf) Rating on F Notes
-----------------------------------------------------------------
S&P Global Ratings assigned its preliminary ratings to eight
classes of residential mortgage-backed securities (RMBS) to be
issued by Perpetual Corporate Trust Ltd. as trustee for Crimson
Bond Trust 2022-2P. Crimson Bond Trust 2022-2P is a securitization
of prime residential mortgage loans originated by BC Securities Pty
Ltd. (BCS).
The preliminary ratings assigned to the floating-rate RMBS reflect
the following factors.
The credit risk of the underlying collateral portfolio, which
comprises residential mortgage loans to residents and nonresidents
of Australia and to self-managed superannuation fund borrowers, and
the credit support provided to each class of notes are commensurate
with the ratings assigned. Credit support is provided by
subordination, excess spread, if any, and a loss reserve funded by
the trapping of excess spread, subject to conditions. S&P's
assessment of credit risk considers BCS's underwriting standards
and approval process as well as its servicing quality.
The rated notes can meet timely payment of interest and ultimate
payment of principal under the rating stresses. Key rating factors
are the level of subordination provided, the loss reserve, the
principal draw function, the liquidity reserve, and the provision
of an extraordinary expense reserve. S&P's analysis is on the basis
that the notes are fully redeemed via the principal waterfall
mechanism under the transaction documents by their legal final
maturity date, and it assumes the notes are not called at or beyond
the call-option date.
S&P said, "Our ratings also take into account the counterparty
exposure to Australia and New Zealand Banking Group Ltd. as the
bank account provider.
"We also have factored into our ratings the legal structure of the
trust, which is established as a special-purpose entity and meets
our criteria for insolvency remoteness.
"We have assessed the servicing and standby servicing arrangements
in this transaction under our "Global Framework For Assessing
Operational Risk In Structured Finance Transactions" criteria,
published on Oct. 9, 2014, and concluded that there are no
constraints on the maximum rating that can be assigned to the
notes.
Preliminary Ratings Assigned
Crimson Bond Trust 2022-2P
Class A1-MM, A$101.70 million: AAA (sf)
Class A1-AU, A$121.50 million: AAA (sf)
Class A2, A$13.90 million: AAA (sf)
Class B, A$18.40 million: AA (sf)
Class C, A$19.20 million: A (sf)
Class D, A$14.75 million: BBB (sf)
Class E, A$9.15 million: BB (sf)
Class F, A$5.65 million: B (sf)
Class G, A$3.75 million: Not rated
FIVECO PTY: First Creditors' Meeting Set for Dec. 8
---------------------------------------------------
A first meeting of the creditors in the proceedings of Fiveco Pty
Ltd will be held on Dec. 8, 2022, at 9:30 a.m. at One Wharf Lane,
Level 20, 171 Sussex Street in Sydney and via virtual meeting
technology.
Michael Hird and Neil Cussen of Cor Cordis were appointed as
administrators of the company on Nov. 28, 2022.
FOOD FOCUS: First Creditors' Meeting Set for Dec. 8
---------------------------------------------------
A first meeting of the creditors in the proceedings of Food Focus
Australia Pty Ltd will be held on Dec. 8, 2022, at 10:00 a.m. via
teleconference at SV Partners Brisbane, 22 Market Street in
Brisbane.
Terry Grant van der Velde and David Michael Stimpson of SV Partners
were appointed as administrators of the company on Nov. 28, 2022.
METIGY: Unpaid Migrant Workers Waiting on Luxury House Sales
------------------------------------------------------------
The Sydney Morning Herald reports that foreign workers employed by
collapsed AI marketing start-up Metigy are waiting for more than
AUD100,000 in unpaid wages four months after the company went under
following its now-bankrupt chief executive's luxury property
spending spree funded by a loan from the firm.
Australian ex-employees of Metigy, which was once feted as the next
great Australian technology firm and valued at AUD1 billion, have
been paid AUD1.3 million from a federal government scheme for
companies that go broke without enough money to immediately cover
their wage bills. And more money is coming.
But that scheme, called the Fair Entitlement Guarantee (FEG), does
not cover the migrant workers, leaving at least six former Metigy
employees owed tens of thousands of dollars, SMH relates.
Joe Zhu, an IT engineer who worked at Metigy for two years on a
special temporary graduate visa, is owed AUD30,000 in unpaid wages
and accrued leave.
"What sucks the most is at first I didn’t know [that I didn’t
qualify]," SMH quotes Zhu as saying. "On the FEG website it says
you need to be a [citizen], permanent resident or on a special
working visa," he said.
He initially assumed that his visa fell under that provision. But
it only covers New Zealanders in Australia, excluding Zhou, who is
from China, the report notes.
"I would describe it as sad because I was entitled to [my pay]," he
said. "I get my pay, I get my leave. I am entitled to that but I
can’t get that. It’s annoying and sad."
"I'm not trying to criticise the government because it’s a really
good scheme," he added. "My thoughts are that maybe they can revise
it a little bit [so that] at least we can get some part of it."
Another former employee, who did not want to be identified while
their visa application is under review, is owed AUD80,000 in unpaid
wages and leave entitlements, SMH relays.
According to SMH, liquidators have told former workers who do not
qualify for the government scheme to wait for the expected income
from the sales of two houses Metigy chief executive and co-founder
David Fairfull purchased after taking out a AUD7.7 million loan
from the company in November 2021. The rest of the money for the
houses came from another lender.
One of the houses - a six-bedroom, four-bathroom mansion in Mosman
that Mr. Fairfull purchased last year for AUD10.5 million – was
quietly sold on November 21, but the transaction is not expected to
settle until at least January, SMH says. The other - a luxury
estate near the Kangaroo Valley purchased for AUD7.7 million - is
expected to be sold in early December.
SMH relates that the exact way the money from the houses will be
divided up among Metigy’s creditors and investors is not clear.
Mr. Fairfull, who has not spoken publicly since Metigy failed at
the end of July, was contacted for comment. Liquidators Cathro &
Partners declined to comment but have confirmed to creditors that
there are former employees who are not eligible for the federal
entitlement guarantee, SMH relays.
Documents suggest at least AUD1 million is owed to former Metigy
staff, but the exact amount is not known, raising questions over
how much money other creditors, including prominent investors Regal
Funds Management and Five V Capital, will get, SMH adds.
About Metigy
Founded in 2015 by David Fairfull and Johnson Lin, Sydney-based
Metigy provided an all-in-one marketing platform tailored for the
needs of SMEs. The Metigy platform includes video creation and
image editing systems, a live ad creation tool, and a 'marketing
command center' providing "recommendations tailored to your
brand".
Simon Cathro and Andrew Blundell of Cathro Partners were appointed
as administrators of the company on July 29, 2022.
NSW PLUMBING: First Creditors' Meeting Set for Dec. 8
-----------------------------------------------------
A first meeting of the creditors in the proceedings of NSW Plumbing
Pty Ltd will be held on Dec. 8, 2022, at 11:00 a.m. via virtual
meeting only.
Stephen John Hundy and Daniel Ivan Cvitanovic of Worrells were
appointed as administrators of the company on Nov. 28, 2022.
RED RIVER: Cor Cordis Appointed as Voluntary Administrators
-----------------------------------------------------------
Jeremy Nipps, Barry Wight and Thomas Birch of Cor Cordis were
appointed as Voluntary Administrators of Red River and its wholly
owned subsidiaries Hillgrove Mines Pty Ltd (owner and operator of
the Hillgrove Gold Mine), Forth Resources Pty Ltd and Hebrides
Resources Pty Ltd on Nov. 29, 2022.
The current owners acquired the mine in July 2019 with the
intention to operate it as a going concern, with sampling
undertaken in 2020/21 to restart the project. In Sept 2022, the
board decided to put the mine in care and maintenance while it
looked at other options to kickstart the mine operation.
Cor Cordis will continue to maintain Hillgrove Mines on a care and
maintenance program, while it assesses viable options with a view
to recapitalise and/or restructure RVR and/or its subsidiaries
though a sale of the assets of the RVR/subsidiaries (or any part
thereof), including via a deed of company arrangement. This review
process may take up to approx. five months to complete and to
determine the outcome of the future of the mining operation and the
group.
"There won't be any changes to the operations of the mine, but we
will be assessing opportunities to determine how best to
restructure the current operations as well as the overall group. We
will also determine the value in the Hillgrove Gold Mine and how
that may play in a broader restructure of the group or Hillgrove
Mines," said Jeremy Nipps from Cor Cordis.
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C H I N A
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CHINA EVERGRANDE: Car Brand Hengchi Is Said to Cut 10% of Jobs
--------------------------------------------------------------
Yicai Global reports that the new energy vehicle brand of China
Evergrande Group, a troubled real estate developer, is once again
reported to be laying off and furloughing staff.
Hengchi Automobile Trading will lay off 10 percent of its staff, or
even more in some departments, The Paper reported on Dec. 2, citing
a source close to the car company, Yicai relays. Another 25 percent
of workers will be sent home for one to three months without pay.
Yicai relates that the vehicle brand's employees are furloughed
from Dec. 1 to Feb. 28, 2023, the report said, citing an anonymous
source. Subsequent adjustments will be made based on workflow, it
added.
According to the report, market participants have been questioning
whether Evergrande New Energy Vehicle Group, the Shenzhen-based
property firm's NEV arm, can maintain its operations and deliver on
its promises of multiple car models amid the parent's liquidity
issues.
Hengchi's human resources are configured to meet the simultaneous
development demand of nine car models, the above-mentioned source
close to the firm said. Given the current pandemic and market
conditions, the company is making strategic adjustments to reduce
costs while increasing efficiency, focusing its resources on
ensuring the production and delivery of Hengchi 5, as well as the
development and mass production of Hengchi 6 and 7, the person
added.
On Oct. 29, Hengchi announced that it began delivering the first
batch of 100 Hengchi 5 sport-utility vehicles. The company had
received more than 37,000 orders in less than 15 days after kicking
off global presales in July. The first Hengchi 5 rolled off the
production line on Dec. 30, 2021.
This is not the first rumor about downsizing. On Nov. 27, auto news
outlet Sina Auto reported that Evergrande NEV's Tianjin plant was
planning to lay off 60 percent of its employees. Some had already
been informed about the decision while others would be sent on
unpaid leave. The company responded that the "current production at
the Tianjin plant is normal."
In August, Hengchi's President Liu Yongzhuo commented on rumors of
an impending acquisition. Liu said that the company has been
actively introducing strategic investors, and both regional
governments and strong enterprises are showing interest. "But there
is no such thing as an acquisition."
About China Evergrande
China Evergrande Group is an integrated residential property .
developer. The Company, through its subsidiaries, operates in
property development, investment, management, finance, internet,
health, culture, and tourism markets.
Evergrande had CNY1.97 trillion (US$311 billion) of liabilities at
the end of June 2021. Once China's biggest developer by sales,
Evergrande fell into distress as cash dried up and the group
overstretched itself on borrowings and ventures into car
manufacturing.
Evergrande hired outside financial advisers Houlihan Lokey and
Admiralty Harbour Capital in September 2021 to engage with
creditors soon after it ran into a liquidity squeeze. It has since
worked with more advisers in the past two months by turning to
China International Capital Corp, BOCI Asia and Zhong Lun Law Firm
on its debt workout plan.
As reported in the Troubled Company Reporter-Asia Pacific in
October 2022, Moody's Investors Service has withdrawn China
Evergrande Group's (Evergrande) corporate family rating and senior
unsecured ratings, the CFRs of Hengda Real Estate Group Company
Limited and Tianji Holding Limited, and Scenery Journey Limited's
backed senior unsecured ratings.
CHINA EVERGRANDE: Hui Sends Voice Message as Rumors Swirl
---------------------------------------------------------
Bloomberg News reports that the billionaire founder of China's
Evergrande Group addressed company executives in a voice message on
Dec. 2, said people familiar with the matter, in an apparent
attempt to quell social media rumours about his whereabouts.
Bloomberg relates that Hui Ka Yan, the chairman of the world's most
indebted developer, sent a 50-second voice clip to about 100
executives on WeChat, a Chinese instant messaging app. In the
message, he told the executives to resume construction projects,
said the sources, who asked to remain anonymous.
He was scheduled to preside over a meeting with Evergrande
employees on Dec. 2, but it was postponed. That sparked speculation
about his whereabouts, Bloomberg says.
The group sits at the centre of a credit crisis that has rippled
through China's real estate sector and curtailed growth in the
world's second-largest economy.
Scrutiny of the company is heating up, as it marches towards a
self-imposed restructuring deadline of end-December, Bloomberg
states. Topics related to Evergrande and Hui were among the top
trending items on Weibo, China's equivalent of Twitter.
According to Bloomberg, former Global Times editor-in-chief Hu
Xijin said on his social media account that, as far as he knew, the
police in Guandong, where Evergrande is based, had not received any
negative news about Hui.
Last week, Evergrande said it planned to present a restructuring
proposal for its dollar debt as soon as the first week of December,
Bloomberg recalls. The company also said it expected to receive
restructuring support from offshore creditors as early as
February.
About China Evergrande
China Evergrande Group is an integrated residential property
developer. The Company, through its subsidiaries, operates in
property development, investment, management, finance, internet,
health, culture, and tourism markets.
Evergrande had CNY1.97 trillion (US$311 billion) of liabilities at
the end of June 2021. Once China's biggest developer by sales,
Evergrande fell into distress as cash dried up and the group
overstretched itself on borrowings and ventures into car
manufacturing.
Evergrande hired outside financial advisers Houlihan Lokey and
Admiralty Harbour Capital in September 2021 to engage with
creditors soon after it ran into a liquidity squeeze. It has since
worked with more advisers in the past two months by turning to
China International Capital Corp, BOCI Asia and Zhong Lun Law Firm
on its debt workout plan.
As reported in the Troubled Company Reporter-Asia Pacific in
October 2022, Moody's Investors Service has withdrawn China
Evergrande Group's (Evergrande) corporate family rating and senior
unsecured ratings, the CFRs of Hengda Real Estate Group Company
Limited and Tianji Holding Limited, and Scenery Journey Limited's
backed senior unsecured ratings.
GOME RETAIL: Denies Bankruptcy Filing by Suppliers
--------------------------------------------------
Yicai Global reports that shares of Gome Retail Holdings, which
strives to become more profitable than ever by 2025, slumped even
though the struggling Chinese electrical appliance chain refuted a
legal service provider's report of an alleged bankruptcy filing by
disgruntled suppliers.
Gome, the listed arm of Gome Holdings, dived 14.1 percent to close
at 17 Hong Kong cents (2 US cents), almost three-quarters down this
year.
Gome Electrical Appliance or other units of Gome Holdings have not
received any legal documents or inquiries from judicial authorities
regarding a bankruptcy filing, the Beijing-based firm said in a
statement on its Weibo on Dec. 1. Yicai relates.
According to Yicai, the Case Center of Ten Billion of Industrial
Institute wrote on its Weibo on Nov. 29 that suppliers of Gome have
applied for liquidation of the retailer in Beijing as the firm owes
millions of yuan to suppliers. The court has initiated a review,
the legal service provider added. Established in December 2020,
Beijing-based Case Center Ten Billion of Industrial Institute works
on complex cases under the Ten Billion of Industrial Institute, a
think tank.
Gome will deal with its operational difficulties through
negotiations under the premise of fully protecting the rights and
interests of all parties, it said on Dec. 1, Yicai relays. The
white goods retailer will follow legal provisions, and also asks
the relevant parties to abide by laws and regulations to solve the
problems, it added.
Founded in 1987, Gome Holdings has grown into a conglomerate of
retail, finance, and real estate. But lately, it has been having
trouble repaying its debts. This year, the firm's net loss is
expected to expand between 35 percent and 55 percent from last
year's CNY4.4 billion (USD626.4 million), according to a statement
issued in October. As of Sept. 30, overdue loans tallied about CNY3
billion. Gome Holdings is actively discussing with relevant banks
and financial institutions to revise the loan terms, it said.
Major shareholders Huang Guangyu and his wife have sold a 24
percent stake in Gome this year, Yicai discloses citing bourse
data. Huang, who was earlier jailed for insider trading and graft,
used to be China's richest man.
GOME Retail Holdings Limited (HK:0493) -- https://www.gome.com.hk/
-- together with its subsidiaries, engages in the retail of
electrical appliances, consumer electronic products, and general
merchandise in the People's Republic of China. The company also
sells its products online through self-operated and platform
models. In addition, it is involved in the provision of logistics
and procurement, storage and delivery, IT development, and business
management services; retailing of mobile phones and accessories;
and property holding activities. As of December 31, 2021, it
operated 4,195 stores in 1,439 cities. The company was formerly
known as GOME Electrical Appliances Holding Limited and changed its
name to GOME Retail Holdings Limited in 2017. GOME Retail Holdings
Limited was founded in 1987 and is headquartered in Central, Hong
Kong.
SUNAC CHINA: Gets US$1.15BB Cash Injection for Shanghai Project
---------------------------------------------------------------
Caixin Global reports that Sunac China agreed to sell nearly 90% of
its interest in one of its most valuable projects in Shanghai to
two state-owned investors.
Caixin relates that Sunac sold a 64.7% stake in its Oceanwide
Construction Holdings unit, which owns the Dongjiadu project in
Shanghai, to a unit of China Huarong Asset Management for CNY5.82
billion (US$826 million). It also sold 25% of the subsidiary to
Citic Trust for 2.25 billion yuan, business registration
information showed.
After the sale, Sunac China retains a 10.3% stake in Oceanwide,
Caixin discloses. Sunac China acquired Oceanwide for CNY12.55
billion in 2019 after the developer hit a cash crunch. In addition
to the Dongjiadu development, Oceanwide owns the Beijing Oceanwide
International Project Land Lot 1.
Sunac China Holdings Limited (SEHK:1918) --
http://www.sunac.com.cn/-- engages in the sales of properties in
the People's Republic of China. The Company operates its business
through two segments: Property Development and Property Management
and Others. The Company's subsidiaries include Sunac Real Estate
Investment Holdings Ltd., Qiwei Real Estate Investment Holdings
Ltd. and Yingzi Real Estate Investment Holdings Ltd.
As reported in the Troubled Company Reporter-Asia Pacific in
October 2022, Moody's Investors Service has withdrawn Sunac China
Holdings Limited's Ca corporate family rating and its C senior
unsecured ratings. Prior to the withdrawal, the rating outlook was
negative. Moody's has decided to withdraw the ratings because it
believes it has insufficient or otherwise inadequate information to
support the maintenance of the ratings.
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H O N G K O N G
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LAI FUNG: Fitch Lowers LongTerm IDRs to 'B-', Outlook Negative
--------------------------------------------------------------
Fitch Ratings has downgraded Hong Kong-based Lai Fung Holdings
Limited's Long-Term Foreign-Currency and Local-Currency Issuer
Default Ratings (IDRs) to 'B-' from 'B+'. The Outlook is Negative.
Fitch has also downgraded Lai Fung's senior unsecured rating to
'B-' from 'B+', with the Recovery Rating remaining at 'RR4'.
Th downgrade follows deterioration in the credit profile of the
parent, Lai Sun Development Company Limited (LSD), such that Lai
Fung's ratings no longer benefit from a rating uplift due to
linkages with the parent. Fitch expects Lai Fung's investment
property (IP) EBITDA interest cover to remain at 0.5x-0.6x in the
financial year ending July 2023 (FY23), before trending towards
0.7x-0.8x in FY25.
The Negative Outlook reflects uncertainty over the pace of recovery
in Lai Fung's IP EBITDA interest coverage.
KEY RATING DRIVERS
Rated on Standalone Basis: Fitch assesses Lai Fung's standalone
credit profile (SCP) as similar to that of the consolidated credit
profile of its parent. LSD's consolidated IP EBITDA interest
coverage dropped to 0.7x in FY22 from 1.1x in FY21, mainly due to
weaker rental income in Hong Kong amid a weak retail environment.
Fitch does not expect significant improvement in LSD's IP EBITDA in
FY23. As such, Fitch rates Lai Fung based on its SCP, which is
unchanged at 'b-', in accordance to its Parent and Subsidiary
Linkage Rating Criteria.
Sufficient Liquidity: Fitch expects Lai Fung to repay its USD350
million (HKD2.7 billion) senior notes due January 2023 as it had
available cash of HKD2 billion and committed undrawn bank
facilities of HKD1,985 million at end-July. Fitch also expects the
company to obtain new bank facilities secured by its unpledged new
IPs in Shanghai and Guangzhou.
Low Interest Coverage: Fitch expects Lai Fung's IP EBITDA interest
coverage to remain at 0.5X-0.6x in FY23, as rental income from its
existing properties may remain under pressure due to
pandemic-related restrictions. Fitch also expects insignificant
rental contribution from new office buildings in Shanghai and
Guangzhou in FY23. Fitch expects these new office buildings to ramp
up to around 80% occupancy in FY25, which will drive interest
coverage to 0.7x-0.8x in FY25, but the pace of the improvement
remains uncertain.
Pre-Leasing of New IPs: The Shanghai Skyline Tower was completed in
September 2022, but pre-leasing activities have been affected by
pandemic restrictions. About 8% of commercial and office area have
been pre-leased. In view of the competition and new office supply
in the city, Fitch expects its take-up rate to be gradual. The Lai
Fung International Center in Guangzhou was completed in early
November 2022, and about 20% of commercial and office area has been
pre-leased. Fitch expects these two IPs to contribute about CNY200
million of rental income in FY26, making up 20%-25% of Lai Fung's
rental income in FY22.
Weak Performance for Novotown: Fitch expects EBITDA from the theme
park at Novotown to remain negative in FY23 given continued weak
tourist visitation. Fitch expects hotel EBITDA and visitation for
the theme park to improve from FY24 as domestic tourism picks up
gradually. Retail revenue at Novotown was reduced by the early
termination of one tenant in FY23. Zhuhai Duty Free Group has been
added a new tenant, bringing overall occupancy for commercial area
at Novotown at 77%. Fitch expects the negative EBITDA from Novotown
to be offset by positive cash flows from development property
sales.
Moderating Capex: Fitch estimates that HKD3 billion-4 billion of
capex for development of Phase II of Novotown will be spent in the
next three years. Phase II should be completed by 2024. Fitch
expects the capex to be mostly funded by onshore construction
loans. Fitch believes Lai Fung may slow its construction for Phase
II in view of the uncertainties about a recovery in tourism
demand.
DERIVATION SUMMARY
Lai Fung's rating is similar to that on Lippo Malls Indonesia
Retail Trust (LMIRT, B-/Negative). While Lai Fung has larger scale
and higher-quality IP assets in Shanghai and Guangzhou, its ratings
are weighed down by its weaker IP EBITDA interest coverage. Its
lower interest coverage is mitigated by its positive cash flow from
selling development property inventory.
Fitch assesses that Lai Fung has lower refinancing risks than LMIRT
as Lai Fung has only USD350 million of debt due in January 2023,
which can be covered by its cash and undrawn bank facilities. In
contrast, LMIRT faces rising refinancing risk. Two-thirds of
LMIRT's debt will mature in the next 18-20 months, for which the
trust will need external financing. LMIRT has demonstrated its
ability to tap banks and capital markets even during the height of
Covid-19 pandemic, but execution risks have increased significantly
as capital-market conditions have turned unfavourable.
Fitch expects LMIRT's funds from operation (FFO) fixed-charge
cover, which includes the coupons on its perpetual securities, to
fall to 1.0x in the next 12-18 months, as a result of the trust's
high exposure to rising interest rates, while the recovery in the
REIT's operating cashflows may be pressured further if the
Indonesian rupiah continues to depreciate.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
-- Annual IP rental revenue of HKD850 million - 1,060 million in
FY23-FY25 (FY22: HKD875 million)
-- IP EBITDA margin of 44% to 55% in FY23-FY25 (FY22: 44%)
-- Annual capex of HKD0.7 million-1.0 billion in FY23- FY25 (FY22:
HKD0.8 billion)
-- Annual contracted sales of HKD0.5 billion in FY23-FY25 (FY22:
HKD1.6 billion)
KEY RECOVERY RATING ASSUMPTIONS
The recovery analysis assumes that Lai Fung would be liquidated in
bankruptcy.
Fitch has assumed a 10% administrative claim.
Fitch uses a multiple assumption tool to derive a 4x EBITDA
multiple to estimate the going concern value. Given the nature of
real estate, the liquidation value approach always results in a
much higher value than going concern approach.
Liquidation Approach
The liquidation estimate reflects Fitch's view of the value of
balance sheet assets that can be realized in sale or liquidation
processes conducted during a bankruptcy or insolvency proceeding
and distributed to creditors.
Lai Fung's inventory mainly consists of completed properties held
for sale and properties under development (PUD). Different advance
rates were applied to these inventory categories to derive the
blended advance rates for net inventory:
-- 50% advance rate to PUD. Unlike completed projects, PUD is more
difficult to sell. These assets are also in various stages of
completion. The PUD balance - prior to applying the advance rate -
is net of margin adjusted customer deposits.
-- 70% advance rate to completed properties held for sale.
Completed commodity housing units are closer to readily marketable
inventory, as such a higher advance rate (vs the typical 50%
mentioned in the criteria) was applied.
56% advance rate to IPs. LFH's IP portfolio mainly consists of
commercial buildings located in higher tier cities, such as
Shanghai and Guangzhou, and the portfolio has an average rental
yield of 3.4% on completed properties. The rating team considered a
56% advance rate to be appropriate as the implied rental yield on
the liquidation value would be 6%, which will be considered
acceptable in secondary market transactions.
80% advance rate applied to trade receivables. As typical to the
China property industry, account receivables constitute a small
percentage of total assets. The applied advance rate is in line
with the advance rate of 80% for accounts receivables, as mentioned
in the criteria.
50% advance rate applied to property, plant and equipment, which
mainly consists of hotel and theme-park assets, in line with the
criteria.
0% advance rate to excess cash. China's homebuilding regulatory
environment means that available cash, including pre-sales
regulated cash, is typically prioritised for project completion,
including payment for trade payables. Net payables (trade payables
less available cash) are included in the debt waterfall ahead of
secured debt, but Fitch does not assume available cash in excess of
outstanding trade payables would be available for other
debt-servicing purposes and therefore set a 0% advance rate for
excess cash.
The allocation of value in the liability waterfall results in a
Recovery Rating of 'RR1' for the offshore senior unsecured debt.
The Recovery Rating for senior unsecured debt is capped at 'RR4'
because under Fitch's Country-Specific Treatment of Recovery
Ratings Criteria, China falls into Group D of creditor
friendliness, and instrument ratings of issuers with assets in this
group are subject to a soft cap at the issuer's IDR and Recovery
Rating of 'RR4'.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
The Outlook may be revised to Stable if:
IP EBITDA interest cover improves towards 0.8x
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- IP EBITDA interest cover falls below 0.6x for a sustained
period
-- Significant weakening of LSD's consolidated credit profile
LIQUIDITY AND DEBT STRUCTURE
Sufficient Liquidity: At end-July 2022, Lai Fung had unrestricted
cash of HKD2.1 billion and undrawn committed bank facilities of
HKD1,985 million, sufficient to cover its short-term debt of HKD3.8
billion. Fitch expects Lai Fung to repay its USD350 million of
senior notes due January 2023 using internal cash and drawdown of
bank facilities.
ISSUER PROFILE
Lai Fung's core businesses include the investment and development
of serviced apartments, residential, office and commercial
properties and the development and operation of - and investment in
- cultural, leisure, entertainment and related facilities in
China.
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 Recovery Prior
----------- ------ -------- -----
Lai Fung Holdings
Limited LT IDR B- Downgrade B+
LC LT IDR B- Downgrade B+
senior unsecured LT B- Downgrade RR4 B+
Lai Fung MTN Limited
senior
unsecured LT B- Downgrade RR4 B+
=========
I N D I A
=========
ADANI GREEN: S&P Raises Senior Secured Bonds Rating to 'BB+'
------------------------------------------------------------
S&P Global Ratings, on Dec. 1, 2022, raised its long-term issue
rating on Adani Green Energy Ltd. Restricted Group 2's (AGEL RG2)
senior secured bond to 'BB+' from 'BB'.
The stable outlook reflects S&P's expectation that AGEL RG2's P90
operating performance, timely receivable collections, and "must
dispatch" status will allow the company to maintain minimum DSCR of
at least 1.27x. Moreover, AGEL RG2's strong reserving mechanism
will help it meet repayment obligations in the last period.
AGEL RG2 consists of three operating entities--Wardha Solar
(Maharashtra) Pvt. Ltd., Kodangal Solar Park Pvt. Ltd., and Adani
Renewable Energy (RJ) Ltd. These three entities are the co-issuers
and co-guarantors of the US$362.5 million senior secured fixed-rate
20-year bond.
The three issuers collectively own and operate a portfolio of 10
solar assets in two states in India, with 570 megawatts (MW) of
installed capacity. Sales are fully contracted under long-term
fixed-price power purchase agreements (PPAs). The offtakers include
government-owned Solar Energy Corp. of India (SECI) (70% of total
EBITDA) and state distribution utilities MSEDCL (25% of total
EBITDA) and Bangalore Electricity Supply Co. Ltd. (BESCOM; 5% of
total EBITDA).
-- Growing but limited record of operations, and
yet-to-be-established record of arresting degradation of generation
profile through regular capital expenditure.
-- Possible delays in receivables due to exposure to weak state
electric utilities in India. While overdue payments can be directly
recovered from end users through a legal escrow mechanism, this
process has not been frequently invoked.
-- Exposure to currency risk on interest payments, risk of higher
hedge costs, and hedge rollover risk for the principal-only swap,
given the shorter hedge tenors compared to the debt tenor.
-- Fixed-price long-term contracted PPAs for the entire capacity
and the "must dispatch" status of renewables provide good
visibility of cash flow.
-- Volatility should be limited by its pool of diversified solar
assets spread across different sites in India, and the presence of
a stronger counterparty, SECI, for a majority of the cash flow.
-- Strong covenant structure with debt amortization, debt sizing,
forward-looking lock up, and a distribution test that ratchets up
if performance deteriorates. The reserves should ensure sufficient
amounts are available to repay the 24% balloon payment of the bond
at the maturity of the 20-year tenor.
S&P said, "We raised the rating to reflect our view that MSEDCL's
ability to perform its obligations as an offtaker on a timely basis
has improved, reducing the risk of delays and defaults due to the
utility. This follows our upward revision of our assessment of
MSEDCL's credit profile. Our analysis of the risks posed by the
need to renew hedging instruments and by the co-issuer structure is
based on our Principles of Credit Ratings criteria in conjunction
with other specific criteria.
"Consequently, we have re-assessed MSEDCL as an irreplaceable and
material counterparty (25% of AGEL RG2's total EBITDA). We now
assume that 200MW capacity will be sold as per the actual
contracted tariff with MSEDCL and the project will not be exposed
to market price risk. As a result, we now assess weighted average
OPBA of '3' for AGEL RG2 from the previous assessment of '6'.
"Our revised base case minimum DSCR for AGEL RG2 is 1.27x and the
average DSCR is 1.45x over the tenor of the debt, excluding the
last debt service period in October 2039. Our base and downside
cases now assume that all power generated will be sold as per the
actual contracted tariff, including the 200MW with MSEDCL at Indian
rupee (INR) 2.71/kilowatt hour (kwH) over the life of the PPA. We
had previously assumed a market price of INR2.50/kwH in our base
case when we considered MSEDCL as a replaceable counterparty and
de-linked the project from its weak credit profile.
"We believe maintaining healthy and timely receivable collections
remains key for the stability of AGEL RG2's cash flow and for the
rating. MSEDCL has built a good record of timely payments within 60
days for all the billing, despite our view of its weak credit
profile. BESCOM has also been generally making payments on time,
paying about 89% of its bill within 60 days as at March 2022.
BESCOM provides an immaterial amount of the cash flow, with more
than 70% of AGEL RG2's cash flows derived from the stronger
counterparty SECI, which has a good record of consistently making
all payments before the due date. The average accounts receivable
turnover for the project was about 1 day in October 2022.
"The 'BB+' rating is at the same 'bb+' assessment as the operations
phase stand-alone credit profile (SACP) before counterparty
adjustments. As such, the rating is not constrained by the credit
profile of the project's weakest counterparty, MSEDCL. This is
after we apply a one-notch insulation to the revenue counterparty
rating due to the regulatory and legal mechanism for recovery of
overdue amounts directly from end customers through an escrow
mechanism.
"The stable outlook reflects our expectation that AGEL RG2 will
maintain stable cash flow with billing and collections in line with
P90 generation (actual generation to be minimum estimated units at
least 90% of the time) estimates over the next 12-24 months. We
also expect continuing timely receivable collections for the asset
pool, given 70%-75% of the receivables are from SECI. We anticipate
AGEL RG2 will be resilient under our downside analysis, maintaining
timely debt service for at least five years. We forecast a minimum
DSCR of 1.27x (ignoring the last period, which we anticipate will
be partially paid from reserves).
"We could lower the rating if we anticipate the minimum DSCR under
our base case will be lower than 1.20x (ignoring the last period,
which we anticipate will be partially paid from reserves).
"We could also lower the rating if we believe AGEL RG2's resilience
under our downside analysis has reduced such that cash flow
available for debt service (CFADS) and reserves cannot meet all
obligations for at least five years under our downside stress
assumptions, or they negatively affect funds available to meet the
final repayment amount." This could occur due to:
-- Lower than P90 generation estimates or curtailment risk that
results in weaker cash flow;
-- Substantial increase in operation and maintenance (O&M) costs
compared with S&P's expectations;
-- Higher repowering costs or greater degradation of assets than
S&P estimates; or
-- Higher hedging renewal costs than our expectations at the time
of hedge renewal, or heightened risk from potential cash outflows
in the event of an appreciation of the rupee at the net settlement
of the cross-currency hedge at the end of each hedge period.
S&P said, "We could also lower the rating if MSEDCL's credit
profile goes down by one notch or we see a lower likelihood of
support from the Indian government for central and state utilities.
Any increase in collection delays or decrease in the ability of the
project to recover overdue receivables could push up debt to cover
such shortfalls, resulting in a possible downgrade.
"We believe the rating is unlikely to be above 'BB+' due to the
risk of hedge renewal and the exposure to the event of default risk
in the event of an inability to renew hedges. However, we could
raise the rating if there is no hedge rollover risk and cash flow
and debt servicing abilities meet our upgrade thresholds.
"Over the long term, we could raise the rating if we anticipate a
minimum DSCR under our base case will be above 1.61x during the
first phase of the transaction." This could occur due to:
-- Stronger cash flow from a proven record of consistently higher
generation than P90 estimates or lower hedging renewal costs than
S&P's expectations at the time of hedge renewal;
-- AGEL RG2 establishing an acceptable record of repowering to
offset degradation of the asset pool;
-- The project continuing to benefit from timely payments from all
offtakers.
AJARA HEALTH: Ind-Ra Moves BB LT Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Ajara Health Care
and Research Centre Private Limited's Long-Term Issuer Rating to
the non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
continue to appear as 'IND BB (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating action is:
-- INR293 mil. Term loans due on April 2026 migrated to non-
cooperating category with IND BB (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The rating was last reviewed on
November 9, 2021. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the rating.
Company Profile
Incorporated in June 2011, Ajara Health Care and Research Centre is
a 350-bed multi-speciality hospital in Hanumakonda, Warangal
district in Telangana. The company commenced its commercial
operations in December 2019.
ALPINE DISTILLERIES: Ind-Ra Keeps 'D' Rating in NonCooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Alpine
Distilleries Private Limited's (ADPL) Long-Term Issuer Rating of
'IND D (ISSUER NOT COOPERATING)' in the non-cooperating category
and has simultaneously withdrawn it.
The instrument-wise rating actions are:
-- INR91 mil. Fund-based limits (long-term)* maintained in non-
cooperating category and withdrawn;
-- INR622.7 mil. Term loan (long-term)* due on June 2025
maintained in non-cooperating category and withdrawn; and
-- INR9.5 mil. Non-fund-based limits (short-term)* maintained in
non-cooperating category and withdrawn.
* Maintained at 'IND D (ISSUER NOT COOPERATING)' before being
withdrawn
Key Rating Drivers
The ratings have been maintained in the non-cooperating category
before being withdrawn because the issuer did not participate in
the rating exercise, despite requests by the agency and has not
provided information pertaining to full year financial performance
for FY21 and FY22, sanctioned bank facilities and utilization,
business plan and projections for the next three years, information
on corporate governance, and management certificate.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received no-objection certificates from the lenders. This is
consistent with the Securities and Exchange Board of India's
circular dated March 31, 2017 for credit rating agencies.
Company Profile
Incorporated in 2002 as Agnes Exim Private Limited, the company was
renamed as ADPL in 2008. A change in the object clause was made to
set up an Indian-made foreign liquor and country liquor bottling
plant. The company commenced its operations in 2012.
AMRUT COTTON: ICRA Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has retained the rating for the bank facilities of Amrut
Cotton Industries in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]B+ (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 16.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Fund Based- 1.70 [ICRA]B+(Stable);ISSUER NOT
Term loan COOPERATING; Rating continues
to remain under the 'Issuer
Not Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Established in 1994, ACI was started as a cotton trading concern.
In 2007, it had set-up its own new manufacturing unit for cotton
ginning with its plant located at Gondal, Gujarat. The plant is
currently equipped with 30 ginning machines with the installed
production capacity of 250 bales per day. In FY2017, the firm
diversified into processing groundnuts. From FY2017 onwards,
revenue from sale of cotton bales and peanuts will the major
revenue sources. The firm was promoted and managed by Mr. Suresh V
Senepara along with 8 family members, being partners, having a long
experience of more than a decade in cotton industry.
ANISH INFRACON: Ind-Ra Keeps BB Issuer Rating in NonCooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Anish Infracon
India Private Limited's (AIIPL) Long-Term Issuer Rating of 'IND BB'
in the non-cooperating category and has simultaneously withdrawn
it.
The instrument-wise rating actions are:
-- INR990 mil. Non-fund-based working capital limits*^ maintained
in non-cooperating and withdrawn; and
-- INR210 mil. Fund-based working capital limits**# maintained in
non-cooperating and withdrawn.
*Out of INR990 million, INR200 million belongs to Bank of Baroda,
for which the agency has received no dues certificate.
**Out of INR210 million, INR50 million belongs to Bank of Baroda,
for which the agency has received no dues certificate.
# Maintained at 'IND BB (ISSUER NOT COOPERATING)/ IND A4+ (ISSUER
NOT COOPERATING)' before being withdrawn
^ Maintained at 'IND A4+ (ISSUER NOT COOPERATING)' before being
withdrawn
Key Rating Drivers
Ind-Ra has maintained the ratings in the non-cooperating category
because the issuer did not participate in the rating exercise
despite requests by the agency and has not provided information
pertaining to the past five years, sanctioned bank facilities and
utilization levels, business plan and projections for the next
three years, information on corporate governance, and management
certificate.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no-objection certificate from the lenders. This is
consistent with the Securities and Exchange Board of India's
circular dated March 31, 2017 for credit rating agencies. Ind-Ra
will no longer provide analytical and rating coverage for AIIPL.
Company Profile
AIIPL executes road projects for government and semi-government
authorities in Gujarat, Maharashtra and Madhya Pradesh.
APM PROJECTS: ICRA Keeps B+ Debt Rating in Not Cooperating
----------------------------------------------------------
ICRA has retained the rating for the bank facilities of Apm
Projects Private Limited in the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]B+ (Stable); ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 12.75 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
APM Projects Private Limited was incorporated in February 2017 to
offer civil and installation services for the solar projects. It is
promoted by Chaudhary family with key promoter, Mr. Mukesh
Chaudhary, having a decade of experience in civil and installation
for the solar projects through his proprietor ship – APM
Projects. The company also has two other subsidiaries – PGEPL
(66.75% stake), which is involved in setting up of solar power
projects and Aditi Infraworks Private Limited, which is engaged in
civil and installation of solar projects. APPL has executed civil
works and installations for solar projects for the reputed entities
in past such as Adani Green Energy Limited, Howe Engineering
Projects India Private Limited, ACME Cleantech Solutions Pvt Ltd.,
Azure Power India Pvt Ltd, Tata Power Solar System Ltd., etc.
ARWADE INFRASTRUCTURE: Ind-Ra Assigns BB+ LongTerm Issuer Rating
----------------------------------------------------------------
India Rating and Research (Ind-Ra) has assigned Arwade
Infrastructure Limited's (AIL) a Long-Term Issuer Rating of 'IND
BB+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR110 mil. Fund-based working capital limit assigned with
IND BB+/Stable/IND A4+ rating;
-- INR500 mil. Non-fund based working capital limit assigned with
IND A4+ rating;
-- INR40 mil. Proposed fund-based working capital limit assigned
with IND BB+/Stable/IND A4+ rating; and
-- INR250 mil. Proposed non-fund-based working capital limit
assigned with IND A4+ rating.
Key Rating Drivers
The ratings reflect AIL's small scale of operations with the
company's revenue falling to INR654.5 million in FY22 (FY21:
INR807.1 million), due to its increased focus on high-margin orders
post COVID-19. As on 1 October 2022, AIL had orders in hand worth
around INR1,849 million (2.8x of FY22 revenue), scheduled to be
executed by end-March 2024. Also, as on 31 October 2022, the
company had bid for orders worth INR2,932.8 million, which are in
the negotiation stage and plans to bid for orders worth of INR4,300
million. It achieved revenue of INR394.1 million in 6MFY23. Ind-Ra
expects AIL's FY23 revenue to increase more than that in FY22, on
account of the orders in hand.
The ratings also reflect AIL's modest credit metrics with its gross
interest coverage (operating EBITDA/gross interest expense) rising
to 3.2x in FY22 (FY21: 2.8x), due to a reduction in the interest
expense to INR23.4 million (INR29.6 million), and the net leverage
(total adjusted net debt/operating EBITDAR) marginally increasing
to 2.2x (2.0x), on account of a reduction in the absolute EBITDA to
INR74.6 million (INR82.0 million). In FY22, the interest expense
reduced on account of lower utilization of its fund-based limit
(cash credit limit) and the usage of more of the limits under the
Emergency Credit Line Guarantee scheme which had low interest rate.
Given AIL does not plan any major debt-led capex plans in the next
two-to-three years, Ind-Ra expects the credit metrics to remain
modest in FY23.
AIL's EBITDA margins remained average at 11.4% in FY22 (FY21:
10.2%) with a return on capital employed of 13.0% (14.3%). In FY22,
its EBITDA margin was increased on account of a reduction in the
cost of goods sold and the execution of high-margin orders. Ind-Ra
expects AIL's EBITDA margin to improve in FY23, on account of its
control over the operating expenses and the execution of
high-margin orders.
Liquidity Indicator-Stretched: In FY22, the net cash conversion
cycle increased to 67 days (FY21: 45 days), on account of an
increase in its debtor days to 101 days (83 days), due to heavy
billing in March 2022, and an increase in inventory days to 126
days (59 days) as the billing was done on a milestone basis as work
was in progress. The creditor days always remained high as it
included advances from customers worth INR1,10.9 million in FY22
(FY21: INR74.2 million; FY20: INR98.2 million; FY19: INR182.96
million). AIL has limited bank lines from a single bank and does
not have any exposure to the capital markets, hence it depends upon
customer advances to meet its financial needs. At FYE22, the cash
and cash equivalent stood at INR2.3 million (FYE21: INR0.3
million). The company's average maximum utilization of the
fund-based limits and non-fund-based limits was 64.9% and 69.2%,
respectively, over the 12 months ended October 2022. In FY22, the
cash flow from operations increased to INR83.6 million (FY21:
INR80.2 million), on account of a favorable change in the working
capital.
The ratings are also constrained by AIL's moderate customer and
supplier concentration risk. In FY22, its top three customers
contributed around 38% to the total sales (FY21: 62%), while its
top three suppliers accounted for around 31% of its total purchases
(35%).
However, the ratings are supported by the promoter's, Nitin Subhash
Arwade, experience of around 27 years in the industrial
construction segment, resulting in an established relationship with
its customers and suppliers.
Rating Sensitivities
Positive: A substantial improvement in the scale of operations
while maintaining the credit metrics and liquidity, on a sustained
basis, would be positive for the ratings.
Negative: Any deterioration in the scale of operations, leading to
deterioration in the credit metrics or liquidity, on a sustained
basis, would be negative for the ratings.
Company Profile
Incorporated in 2009, AIL is engaged in the business of industrial
construction. The Pune-based company has a business development
office in Mumbai and a warehouse in Sangli (Maharashtra).
ATC FOODS: ICRA Keeps B+ Debt Ratings in Not Cooperating Category
-----------------------------------------------------------------
ICRA has retained the rating for the bank facilities of ATC Foods
Private Limited in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]B+ (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 50.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in 2011, AFPL is involved in milling, processing and
sorting of basmati and non-basmati rice. The company's plant at
Delhi has a milling capacity of 60 tonnes per day. The company
exports basmati rice as well as sells to the domestic market. The
direct exports are made to countries such as Dubai and Saudi rabia
and the remaining is sold through exporters to European countries.
BOLTMASTER (INDIA): ICRA Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
ICRA has retained the Long-Term rating of Boltmaster (India)
Private Limited in the 'Issuer Not Cooperating' category. The
rating is denoted as [ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 22.80 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loans 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
The company started manufacturing activities in 1976 at Goregaon
Mumbai and has developed more than 2500 different varieties of
fasteners either as per customer's requirements or conforming to
national/international standards. In 1994, to meet increased
demand, the company set up new factory at Bhayander in suburban
Mumbai with installed capacity of 4000 MTPA or 12 million pieces
per annum. The company's product range covers various types of
Fasteners such as Bolts, Screws, Nuts Studs etc. and forged
components, conforming to national and international standards such
as ISO, IS, BS, DIN, ASTM, ANSI etc. These products find
application in Heavy Engineering, Mines (Coal, Aluminium, Iron
etc.), Ship building, Constructions, Earthmoving Equipments, Sugar
industries, Cement & Chemical plants, Power Stations, Railways,
PetroChemicals, Nuclear power generation plants, steel plants, Farm
Equipments and in Automotive sector.
DASHMESH AGRO: ICRA Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
ICRA has retained the rating for the bank facilities of Dashmesh
Agro Industries in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 26.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Dashmesh Agro Industries is a partnership firm promoted by Mr.
Ashwani Sidana and his family members. The firm is primarily
involved in the milling of basmati rice and also converts
semi-processed rice into parboiled basmati rice. DAI's milling unit
is based out of Jalalabad in Ferozpur district, Punjab, which is in
close proximity to the local grain market.
DASHMESH RICE: ICRA Keeps B Debt Rating in Not Cooperating
----------------------------------------------------------
ICRA has retained the rating for the bank facilities of Dashmesh
Rice Mills in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]B (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 30.00 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Dashmesh Rice Mills is a partnership firm promoted by Mr. Raman
Sidana and his family members, primarily involved in milling of
basmati rice. The firm also converts semi-processed rice into
parboiled basmati rice. DRM's milling unit is based out of
Jalalabad, District in Punjab's Ferozpur, in close proximity to the
local grain market.
DEVI ENGINEERING: Ind-Ra Assigns BB- LongTerm Issuer Rating
-----------------------------------------------------------
India Rating and Research (Ind-Ra) has assigned Devi Engineering
and Constructions Private Limited (DECPL) a Long-Term Issuer Rating
of 'IND BB-'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR170 mil. Fund-based working capital limit assigned with IND
BB-/Stable/IND A4+ rating; and
-- INR330 mil. Non-fund-based working capital limit assigned with
IND A4+ rating.
Key Rating Drivers
The ratings reflect DECPL's small scale of operations even as its
revenue increased to INR1,092.8 million in FY22 (FY21: INR971.2
million; FY20: INR880.5 million; FY19: INR872.6 million; FY18:
INR802.8 million), on account of improved order execution. The
revenue grew at a CAGR of 8.01% over FY18-FY22, on account of an
increase in the order inflow and timely order execution. The net
revenue achieved in 5MFY23 was INR420 million. In FY23, Ind-Ra
expects DECPL's revenue to grow yoy due to the orders in hand.
FY22 numbers are provisional in nature.
The ratings also reflect DECPL's moderate credit metrics with an
interest coverage (operating EBITDA/gross interest expense) of 3.0x
(FY21: 2.5x) and a net leverage (adjusted net debt/operating
EBITDAR) of 2.5x (2.8x). In FY22, the credit metrics improved
marginally on account of a reduction in the interest expense to
INR73.7 million (FY21: INR93.4 million) and a reduction in the
total debt to INR549.9 million (INR675.8 million). DECPL has
availed 100% interest-free unsecured loans from friends, family and
directors. In FY23, DECPL plans to incur capex of INR340 million
for eight compressor machines and to purchase a land in Assam. This
capex will be funded INR200 million through term loans from North
Eastern Development Financial Corporation Limited (not yet
sanctioned), INR60 million capital infusion (already done in FY22)
and rest from internal accruals. As on 18 October 2022, DECPL had
imported three machines using capital infusion. According to the
management, these three machines will be operational till
end-December 2022 and the remaining will be operational by
end-March 2023. Ind-Ra expects the credit metrics to remain
moderate in FY23 on account of the new term loan to be raised for
the capex.
The ratings factor in DECPL's moderate revenue visibility. As on 1
September 2022, DECPL had an order book of around INR3,551 million
(3.25x of FY22 revenue), which the management expects to be
executed till end-March 2027, out of which around INR1,433 million
(40% of orders in hand) is likely to be completed in FY23.
Moreover, DECPL has bid for orders worth INR2,290 million, of which
the management expects 50% orders to be received. The management is
also preparing to apply for bids worth INR4,651 million, the result
of which it will get to know at end-March 2023.
The ratings also factor in DECPL's average EBITDA margins of 20.4%
in FY22 (FY21: 24.4%) with a return on capital employed of 14.4%
(16.2%). In FY22, the EBITDA margin declined on account of an
increase in the cost of the goods sold. Ind-Ra expects DECPL's
EBITDA margin to marginally improve in FY23 on account of
controlled operating expenses.
Liquidity Indicator - Poor: The company's fund-based limits were
fully utilized over the 12 months ended September 2022 with a few
instances of overutilization in the last six months. The
non-fund-based limits were utilized at an average of 66.8% over the
12 months ended September 2022. DECPL's debt repayment is around
INR96.39 million in FY23 and INR119.8 million in FY24. In FY22, the
cash and cash equivalent were INR0.3 million (FY21: INR1.5
million). In FY22, the cash flow from operations reduced to INR62.6
million (FY21: INR83.9 million) on account of unfavorable changes
in the working capital. In FY22, the net cash conversion cycle
elongated to 188 days (FY21: 175 days) on account of an increase in
the inventory days to 84 (74).
The ratings are constrained by DECPL's high customer and supplier
concentration risk. In FY22, the top three customers contributed
around 83% to the total sales (FY21: 98%) and the top three
suppliers contributed around 80% to the total purchases (35%).
The ratings are supported by the promoter Venkata Gangadhar
Jagatha's experience of around two decades in seismic data survey,
engineering, procurement and construction of turnkey projects and
gas compression services business, leading to DECPL's established
relationships with customers and suppliers.
Rating Sensitivities
Positive: An improvement in the liquidity while maintaining the
scale of operations and credit metrics will be positive for the
ratings.
Negative: Substantial deterioration in the scale of operations,
liquidity or credit metrics will be negative for the ratings.
Company Profile
DECPL was incorporated in 2014 as a private limited company. It is
engaged in business of seismic data acquisition (geophysical
division), engineering procurement and construction on turnkey
projects and gas compression services. Its registered office is at
Kakinada, Andhra Pradesh, corporate office is at Hyderabad and its
three branches are at Tripura, Assam and Arunachal Pradesh.
HAMSA MINERALS: ICRA Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Hamsa
Minerals & Exports. in the 'Issuer Not Cooperating' category. The
ratings are denoted as "[ICRA]D/[ICRA]D ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 3.50 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based/CC Rating Continues to remain under
'Issuer Not Cooperating'
Category
Long-term– 3.35 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based/TL Rating Continues to remain under
'Issuer Not Cooperating'
Category
Short-term 10.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Continues to remain under the
'Issuer Not Cooperating'
Category
Long-term/ 2.35 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Unallocated remain under 'Issuer Not
Cooperating' Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in 2004, Hamsa Minerals & Exports is a partnership
firm engaged in granite quarrying and exporting dressed granite
blocks to countries such as China, Hong Kong, Taiwan and
Switzerland. Initially, the firm was into iron ore exports business
and subsequently got 100 per cent EOU (Export Oriented Unit)
certificate from Vishakhapatnam SEZ to export squared and dressed
granite blocks.
HBS REALTORS: ICRA Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------
ICRA has retained the rating of Non-Convertible Debentures of HBS
Realtors Private Limited in the 'Issuer Not Cooperating' category.
The ratings are denoted as [ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-convertible 53.56 [ICRA]D; ISSUER NOT COOPERATING;
Debenture Rating Continues to remain under
Programme the 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in 1995, HBS Realtors Private Limited is a
Mumbai-based real estate developer involved in large scale
city-centric developments in commercial as well residential
segments. The group has a diversified product mix with a strong
presence in residential, retail, commercial, hospitality and SEZ
developments. Over the last decade, HBS has built strategic
partnerships with reputed business houses such as Phoenix Mills
Limited for the development of its 'Marketcity' projects, and with
the Mody Group of JB Chemicals and Pharmaceuticals for the
development of its pharma SEZ project. Over the years, HBS has also
attracted various financial investors like IL&FS, MPC Fund, SREI
Infrastructure Finance Ltd. and Edelweiss across its various
projects.
HEMJEE RICE: Ind-Ra Moves 'B+' LT Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Hemjee Rice Mills'
Long-Term Issuer Rating to the non-cooperating category. The issuer
did not participate in the rating exercise despite continuous
requests and follow-ups by the agency. Therefore, investors and
other users are advised to take appropriate caution while using
these ratings. The rating will now appear as 'IND B+ (ISSUER NOT
COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR67.5 mil. Fund-based working capital limit migrated to non-
cooperating category with IND B+ (ISSUER NOT COOPERATING)/IND
A4 (ISSUER NOT COOPERATING) rating; and
-- INR3.5 mil. Non-fund-based working capital limit migrated to
non-cooperating category with IND A4 (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
October 27, 2021. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
Company Profile
Hemjee Rice was established in 1982 as a partnership concern. It is
owned and managed by Sandeep Kumar Agarwala. Based in Katwa,(Purba
Burdwan, West Bengal), the firm manufactures and trades par boiled
rice. It has a total installed capacity of 60,000 tons/annum.
JASMER FOODS: Ind-Ra Affirms BB LongTerm Issuer Rating
------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Jasmer Foods
Private Limited's (JFPL) Long-Term Issuer Rating at 'IND BB'. The
Outlook is Stable.
The instrument-wise rating action are:
-- INR285 mil. (Increased from INR185 mil.) Fund-based-working
capital limits affirmed with IND BB/Stable rating; and
-- INR11.72 mil. (reduced from INR19.52 mil.) Term loan due on
May 2024 affirmed with IND BB/Stable rating.
Key Rating Drivers
The ratings reflect JFPL's continued small scale of operations,
with its revenue rising around 20.5% yoy to INR637.87 million
(FY21: INR529.49 million), owing to a surge in its sales volumes,
increased prices in the international markets and the addition of
new customers. The increased exports were a result of the company's
improved marketing and sales efforts. The company booked revenue of
INR523 million 1HFY23 and Ind-Ra expects the revenue to increase
further in FY23, on account of an expansion of its export base and
the addition of new clientele.
The ratings factor in the fragmented nature of the industry where
many players operate in the organized and unorganized sectors.
JFPL has modest EBITDA margins, which contracted to 10.89% in FY22
(FY21: 11.92%), due to an increase in employee and travelling
expenses. JFPL's raw material prices remained volatile, leading to
volatile EBITDA margins. The company's return on capital employed
stood at 9.1% in FY22 (FY21: 9.6%). In FY23, Ind-Ra expects the
margins to remain volatile due to the susceptibility to volatility
in its raw material prices.
The ratings also factor in JFPL's modest credit profile. The gross
interest coverage (EBITDA/gross interest expense) improved
marginally to 2.41x in FY22 (FY21: 2.34x) and the net leverage
(adjusted net debt/ EBITDAR) increased to 7.27x (6.83x), mainly due
to an increase in its absolute EBITDA to INR69.45 million (INR63.14
million) and an increase in total adjusted debt to IN510.48 million
(INR435.5 million) on account of the enhancement in limits. In
FY23, Ind-Ra expects the company's credit metrics to remain
moderate, owing to the high working capital requirement, leading to
the company's dependence on external debt.
Liquidity Indicator- Stretched: JFPL's average maximum utilization
of the fund-based limits was 90.27% for the 12 months ended October
2022. The net working capital cycle stood elongated at 388 days in
FY22 (FY21: 386 days), mainly due to its higher inventory days of
310 days (340 days) given the seasonal nature of its business. The
company had cash and cash equivalents of INR5.36 million at FYE22
(FYE21: INR4.52 million) against a total debt of INR510.48 million
(INR435.5 million). The company has INR14.8 million and INR15.6
million of debt repayment obligations for FY23 and FY24,
respectively. The company's cash flow from operations remained
negative at INR72.2 million in FY22 (FY21: INR94.20 million), due
to high working capital requirement. However, the company does not
have any capital market exposure and relies on banks and financial
institutions to meet its funding requirements.
However, the ratings are supported by the promoter's decade-long
experience in the rice processing and milling industry.
Rating Sensitivities
Positive: A significant improvement in the scale of operations,
leading to an improvement in the liquidity position and the credit
metrics with the net leverage ratio falling below 3.5x, on a
sustained basis, may lead to a positive rating action.
Negative: A decline in the scale of operations, leading to a
deterioration in the credit metrics and/or a deterioration in the
liquidity position, on a sustained basis, may lead to a negative
rating action.
Company Profile
Kurukshetra-based JFPL, incorporated in June 2011, is managed by
three directors namely Jatinder Singh, Harminder Singh and Ravinder
Singh. It is engaged in the milling, processing and manufacturing
of basmati rice in a fully integrated setup with a capacity of
around 200 metric ton per day.
K.C. TOOLROOM: ICRA Keeps B+ Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of K.C.
Toolroom Private Limited in the 'Issuer Not Cooperating' category.
The rating are denoted as "[ICRA]B+ (Stable)/[ICRA]A4; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 13.56 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 3.80 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Non-fund based– 0.30 [ICRA]A4; ISSUER NOT
Limits COOPERATING; Rating continues
to remain under the 'Issuer
Not Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in 1998, K.C. Toolroom Pvt. Ltd. (KCTPL) is engaged in
the manufacturing and sale of grinded wheat products such as maida,
rawa and bran. The company has a flour mill in Ahmednagar,
Maharashtra with a processing capacity of about 200 tons per day
(TPD). The company also operates a toolroom division which
undertakes job work of machining and manufacturing dies and caters
to major auto and auto ancillary units in and around Pune. The
company derives ~95% of its revenue from the flour mill division.
The promoter family has a long-standing experience in the flour
milling business given their presence since 1965. The family is
also engaged in the flour milling business through other group
companies.
KASHIPUR SITARGANJ: Ind-Ra Keeps D Issuer Rating in NonCooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Kashipur
Sitarganj Highways Pvt Ltd.'s bank loan's rating in the
non-cooperating category. The issuer did not participate in the
surveillance exercise despite continuous requests and follow-ups by
the agency. Therefore, investors and other users are advised to
take appropriate caution while using the rating. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The detailed rating action is:
-- INR4.220 bil. Senior long-term rupee loans (Long-term) due on
March 2029 maintained in non-cooperating category with IND D
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
November 19, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the rating.
Company Profile
Kashipur Sitarganj Highways is a special purpose vehicle that was
incorporated to implement a 77.2-kilometre two-to-four-lane
expansion project between Kashipur and Sitarganj in Uttarakhand on
National Highway 74, under a 21-year concession from the National
Highways Authority of India ('IND AAA'/Stable).
KHODAL COT-GIN: ICRA Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has retained the rating for the bank facilities of Shree
Khodal Cot-Gin Pvt. Ltd. in the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 6.50 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term– 1.85 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Shree Khodal Cot-Gin Pvt. Ltd. (SKCGPL) was incorporated in 2012
and it commenced ginning and pressing operations in January 2015 by
setting up a manufacturing facility at Rajkot, Gujarat. The
company's facility is equipped with 30 ginning machines and a
pressing machine with a total capacity to process 28,000 MT of raw
cotton annually. The operations of the firm are managed by Mr.
Kamleshbhai Vekaria and Mr. Bharatbhai Vekaria.
KSC EDUCATIONAL: ICRA Keeps B+ Debt Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has retained the rating for the bank facilities of KSC
Educational Society in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]B+ (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 150.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 2.32 [ICRA]B+ (Stable) ISSUER NOT
Non Fund Based COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
K.S.C Educational Society is promoted by the Chadha Group with the
objective of providing technical and non-technical education. The
Society has set up an international school (from Nursery to Class
XII) by the name of 'Genesis Global School' in Sector 132 of Noida,
Uttar Pradesh. The school commenced operations from April 2010.
M V AGRO: ICRA Keeps D Debt Ratings in Not Cooperating Category
---------------------------------------------------------------
ICRA has retained the rating for the bank facilities of M V Agro
Renewable Energy Pvt. Ltd. in the 'Issuer Not Cooperating'
category. The ratings are denoted as "[ICRA]D/[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 11.50 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term– 4.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term/ 0.50 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Unallocated remain under 'Issuer Not
Cooperating' Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
M V Agro Renewable Energy Private Limited, incorporated in year
2014, manufactures bio fuel pellets from agro wastes, plant
residues, stems and plant biomass as the primary sources of raw
materials. The company has an installed capacity of 150 tons per
day and its manufacturing facility is located in Praskasham
District, Andhra Pradesh. The company started its operations in
2016.
MAHI CORPORATION: ICRA Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has retained the Long-Term rating of Mahi Corporation Pvt.
Ltd. in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 5.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term– 1.45 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in November 2013, Mahi Corporation Private Limited
(MCPL) processes guar seeds to obtain guar gum refined splits and
by-products like churi and korma. The company operates from its
facility located at Tankara in Rajkot district of Gujarat, with an
installed guar gum seeds processing capacity of 16,500 MTPA.
MARUTI COTTON: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has retained the Long-Term rating of Maruti Cotton Industries
in the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 6.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term– 1.95 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Established in 2014, Maruti Cotton Industries (MCI) commenced
commercial operations on 28th December 2014 and is engaged in
manufacture of cotton bales through ginning and pressing of raw
cotton. The manufacturing unit of the company is located at Kadi
(Mehsana) - an area with easy availability of raw cotton, and is
equipped with 24 ginning machines and one fully automated pressing
machine having a production capacity of 250 bales per day.
NOBLE EDUCATIONAL: ICRA Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
ICRA has retained the rating for the bank facilities of Noble
Educational and Charitable Trust. in the 'Issuer Not Cooperating'
category. The ratings are denoted as "[ICRA]D/[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 14.01 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term– 0.25 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term/ 0.74 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Unallocated remain under 'Issuer Not
Cooperating' Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Noble Educational and Charitable Trust was incorporated in the year
2009 and manage an engineering college by the name Holy Kings
College of Engineering and Technology located in Ernakulam, Kerala.
The college started functioning from September 2011 and was
affiliated to Mahatma Gandhi University, Kottayam till 2014-15.
From 2015-16 onwards, it is affiliated to A P J Abdul Kalam
Technological University (KTU), previously known as Kerala
Technological University. The college is AICTE approved (All India
Council for Technical Education) and is ISO 9001:2008 certified.
PANSARI STEELS: ICRA Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Pansari
Steels Private Limited in the 'Issuer Not Cooperating' category.
The rating are denoted as "[ICRA]B+ (Stable)/[ICRA]A4; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 8.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating Moved to
Cash Credit the 'Issuer Not Cooperating'
Category
Unallocated 2.00 [ICRA]A4; ISSUER NOT
(Proposed COOPERATING; Rating Continues
Limits) to remain under issuer not
cooperating category
Letter of Credit (6.00) [ICRA]A4; ISSUER NOT
COOPERATING; Rating Continues
to remain under issuer not
cooperating category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
PSPL, a closely held company, was incorporated in 1991 and is at
present managed by Mr. Vishwanath Pansari. The company is involved
in trading of iron sheets and polymers, mainly comprising ethylene
Vinyl Acetate (EVA) and poly Vinyl chloride (PVC). In FY2018 the
company also started trading of new product i.e. calcium carbonate
although the same has contributed marginally to the topline of
PSPL.
PARAMOUNT INTERNATIONAL: ICRA Keeps D Rating in Not Cooperating
---------------------------------------------------------------
ICRA has retained the rating for the bank facilities of Paramount
International in the 'Issuer Not Cooperating' category. The ratings
are denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short-term 10.80 [ICRA]D; ISSUER NOT COOPERATING;
Fund-based Continues to remain under the
'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Paramount International (PI) was incorporated on 2008. It is
involved in manufacturing of handicrafts like Candle Stands, Lamps,
Christmas Ornaments etc. made of brass, colored glass, iron,
aluminum etc. The raw materials used at present are Timber, Iron
and Glass. The firm's factory is in Moradabad, U.P. also known as
"Brass City or Peetal Nagri". The firm has no retails outlets and
all the sales are exported mainly to the USA and some European
countries.
PARAMPUJYA SOLAR: S&P Affirms 'BB-' Rating on Senior Secured Bond
-----------------------------------------------------------------
S&P Global Ratings, on Dec. 1, 2022, affirmed its 'BB-' long-term
issue rating on Parampujya Solar Energy Private Ltd. Restricted
Group's (PSEPL RG) senior secured bond.
The stable outlook reflects S&P's expectation that PSEPL RG's P90
operating performance and timely receivable collections will result
in an average DSCR of 1.17x over the life of the project.
PSEPL RG comprises three wholly owned subsidiaries of Adani Green
Energy Ltd.: Adani Green Energy (UP) Ltd., Parampujya Solar Energy
Pte. Ltd., and Prayatna Developers Private Ltd. These entities,
collectively referred to as PSEPL RG, are the co-issuers and
co-guarantors of a US$500 million senior secured fixed-rate
5.5-year bond.
PSEPL RG owns and operates a portfolio of 25 solar assets in eight
Indian states with 930 megawatts (MW) of installed capacity (the
project). Sales are fully contracted under long-term fixed-price
power purchase agreements (PPAs) with offtakers. These include
central government companies such as NTPC Ltd. and Solar Energy
Corp. of India (SECI; combined 63% of total EBITDA) and state
distribution companies (discoms; the remaining 37% of total
EBITDA).
Risks
A growing but limited record of operations, and yet-to-be
established record of arresting the degradation of its generation
profile through regular capital expenditure.
Exposure to market price risk for 100 MW of capacity due to our
assumption that Punjab State Power Corp. Ltd. (PSPCL) is a
replaceable counterparty, which removes any link to its weak credit
profile.
Possible delays in receivables due to exposure to weak state
electric utilities in India (such as in the states of Punjab, Uttar
Pradesh, and Karnataka). Despite a legal mechanism for the recovery
of overdue payments directly from end-users through an escrow
mechanism, this process has not been frequently invoked.
Exposure to currency risk on interest payments, risk of higher
hedge costs, and hedge rollover risk for the principal-only swap,
given the shorter hedge tenor than debt tenor. Transaction
documentation also does not require mark-to-market gains to be used
to offset debt obligations.
Strengths
Fixed-price long-term contracted PPAs for the entire capacity,
(although S&P assumes market prices for one weaker state discom),
and the "must dispatch" status of renewables provide good
visibility of cash flow.
Volatility should be limited by its pool of diversified solar
assets spread across India, and the presence of stronger
counterparties such as NTPC and SECI.
S&P said, "We affirmed the rating as we expect PSEPL RG to maintain
an average DSCR of at least 1.17x over the life of the project. In
addition, we expect the project to remain resilient under our
downside analysis given that cash flow available for debt service
(CFADS) and its reserving mechanism will allow PSEPL RG to meet all
obligations for at least five years. These strengths mitigate the
project's weaker operational performance than our expectation and
some delays in receivable collections equivalent to about 27% of
the project's total EBITDA contribution. Our analysis of the risks
posed by the need to renew hedging instruments and by the co-issuer
structure is based on our Principles of Credit Ratings criteria in
conjunction with other specific criteria."
The portfolio's operating performance for fiscal 2022 (year ending
March) was closer to P99 estimates (actual generation to be minimum
estimated units at least 99% of the time), which was lower than P90
estimates. PSEPL RG revised down its generation estimates following
an updated energy yield assessment study by its independent
advisor.
S&P's revised base case minimum DSCR is 0.95x and average DSCR is
1.17x over the life of the project. This is primarily driven by a
decrease in revenue and benchmarking operation and maintenance
(O&M) costs to typical market levels, subject to annual
escalations.
S&P believes maintaining healthy and timely receivable collections
remains key for the stability of cash flow and for the rating. The
majority of PSEPL RG's offtakers (just above 70% of total EBITDA),
including stronger counterparties NTPC and SECI, generally make
payments on time. Average accounts receivable turnover for the
project was about 34 days in October 2022.
About 22% of PSEPL RG's total receivables position as of March 2022
was more than 60 days past due. This was primarily driven by Hubli
Electricity Supply Co. Ltd. (HESCOM; about 25% of total EBITDA).
Gulbarga Electricity Supply Co. Ltd. (GESCOM) contributes an
immaterial amount to the project's total cash flow. These two weak
counterparties have not been paying on time since the COVID-19
pandemic outbreak in 2020. However, the increments in collection
delays did not result in a permanent increase in debt for PSEPL RG
to cover such shortfalls.
S&P said, "We expect PSEPL RG's receivable position to temporarily
stabilize over the next 12 months with the collection of overdue
payments. The Indian government's Late Payment Surcharge scheme is
likely to provide temporary relief to the project, reducing its
working capital drag. While we forecast neutral working capital
movements, we expect PSEPL RG to pay an imputed interest cost of
9.79% on its Indian rupee (INR) 1 billion of undrawn working
capital facilities. However, the surcharge scheme does not fully
resolve the structural weaknesses at state electric utilities, and
PSEPL RG will remain exposed to the risk of the weak counterparties
and further payment delays.
"The stable outlook reflects our expectation that PSEPL RG will
maintain stable cash flow with billing and collections in line with
P90 generation estimates over the next 12-24 months. We also expect
continuing timely receivable collections for the asset pool, given
that about 60% of the receivables are from stronger counterparties
such as NTPC and SECI.
"We could lower the rating if we anticipate the average DSCR under
our base case will be lower than 1.13x or if we believe PSEPL RG's
resilience under our downside analysis has reduced such that CFADS
and reserves cannot meet all obligations for at least five years
under our downside stress assumptions." This could occur due to:
-- Lower than P90 generation estimates or curtailment risk that
results in weaker cash flows;
-- An inability to sell power or a substantial fall in grid price
compared with S&P's expectations in relation to the 100 MW
capacity, which it has assumed to be sold at grid price in the
event of a default by the state of Punjab;
-- A substantial increase in O&M costs compared with S&P's
expectations;
-- Higher repowering costs or a greater degradation of assets than
S&P estimates; or
-- Higher hedging renewal costs than S&P's expectations at the
time of hedge renewal, or heightened risk from potential cash
outflows in the event of an appreciation of the Indian rupee at the
mark-to-market hedge settlement at the end of any hedge period.
S&P may also lower the rating if it expects a lower likelihood of
support from the Indian government for central and state utilities.
Any increase in collection delays or decrease in the project's
ability to recover overdue receivables could push up debt to cover
such shortfalls, resulting in a possible downgrade.
S&P could raise the rating if it anticipates the minimum DSCR under
its base case will be above 1.10x. This could occur due to:
-- Stronger cash flow from a record of consistently higher
generation than P90 estimates or lower hedging renewal costs than
S&P's expectations at the time of hedge renewal;
-- The project continues to benefit from timely payments from all
offtakers; or
-- PSEPL RG establishes an acceptable record of repowering to
offset the degradation of its asset pool.
PRECISE AUTOMATION: Ind-Ra Moves B Rating to Non-Cooperating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Precise Automation
& Control Private Limited's Long-Term Issuer Rating to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND B (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR35.00 mil. Fund-based working capital limits migrated to
non-cooperating category with IND B (ISSUER NOT
COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating;
-- INR9.42 mil. Term loans due on August 2024 migrated to non-
cooperating category with IND B (ISSUER NOT COOPERATING)
rating; and
-- INR14.50 mil. Non-fund-based working capital limits migrated
to non-cooperating category with IND A4 (ISSUER NOT
COOPERATING) rating.
Note: Issuer Not Cooperating: The ratings were last done on October
26, 2021. Ind-Ra is unable to provide an update, as the agency does
not have adequate information to review the ratings.
Company Profile
Incorporated in March 2007, Precise Automation and Control is
engaged in the business of designing, engineering and manufacturing
of all kinds of electrical distribution panel. It also deals with
electrical industrial motors, frequency drives, MCC panels, PCC
panels, DCS and SCADA systems. The registered office is located at
Vadodara, Gujarat. The directors are Darshak Kumar Sheth and
Kaminiben Sheth. The promoter is in this business from last 25
years.
QURESHI INTERNATIONAL: ICRA Keeps B+ Rating in Not Cooperating
--------------------------------------------------------------
ICRA has retained the rating for the bank facilities of Qureshi
International Private Limited in the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]B+ (Stable); ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 9.90 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
QIPL is established in 1974 by Mr. Hajid Mohd Yaqoob Qureshi and is
involved in processing of fresh and frozen halal boneless buffalo
meat and edible offals. The company sources buffalo carcass from
butchers, who are a part of the Qureshi community. The butchers use
government slaughtering facility and sell to QIPL. Its processing
facility has provision for deboning, packaging and storing in the
chilling plant, which has a capacity of 12,000MT/year. In FY2017,
the company has invested INR5.10 crore in Telangana Foods Private
Limited (TFPL). TFPL is a 100% subsidiary of QIPL, which is into
processing of buffalo meat and exports to countries such as
Vietnam, China, the CIS countries, Kuwait, Iraq, West and Central
Africa. Its processing unit is in Medchal, Telangana. Further, TFPL
has the requisite approvals for export of meat and QIPL started
exporting through TFPL instead of other merchant exporters.
RELIANCE INFRASTRUCTURE: Ind-Ra Affirms 'D' Long-Term Issuer Rating
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Reliance
Infrastructure Limited's (R-Infra) Long-Term Issuer Rating at 'IND
D'.
The instrument-wise rating actions are:
-- INR35 mil. Bank facilities (long-term/short-term) affirmed
with IND D rating; and
-- INR3.85 mil. Non-convertible Debentures (NCDs,long-term) ISIN
INE036A07567 issued on June 13, 2018 affirmed with 12.5%
coupon rate due on December 15, 2021 with IND D rating.
Key Rating Drivers
The ratings reflect R-Infra's ongoing delays in servicing the rated
debt instruments, according to the company's disclosure on the
National Stock Exchange Ltd and the BSE Ltd.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months could result in an upgrade.
ESG Issues
ESG Factors Minimally Relevant to Rating: Unless otherwise
disclosed in this section, the ESG issues are credit neutral or
have only a minimal credit impact on R-Infra, due to either their
nature or the way in which they are being managed by the entity.
Company Profile
R-Infra is the flagship company of the Reliance Group, led by Anil
Dhirubhai Ambani, with a focus on the energy and infrastructure
businesses. The company has an in-house engineering, procurement
and construction division that is active in the power and road
segments.
RIDDHI SIDDH: ICRA Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------
ICRA has retained the rating for the bank facilities of Riddhi
Siddhi Cotton Ginning & Pressing Pvt. Ltd. in the 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER
NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 20.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in 2006, Riddhi Siddhi Cotton Ginning and Pressing
Private Limited (RSCGP) is engaged in cotton ginning and pressing
to produce cotton bales and cotton seeds. The manufacturing unit of
company is located in Rajkot, Gujarat with thirty six ginning and
one pressing machine having an installed capacity of producing
19,152 bales of ginned cotton in a year. RSCGP is currently managed
by three directors Mr. Lavjibhai Kakdiya, Mrs. Gauriben Kakdiya and
Mr. Vijay Kakdiya, all of who have long-standing experience in the
cotton industry.
S.K. AGROS: ICRA Keeps B Debt Ratings in Not Cooperating Category
-----------------------------------------------------------------
ICRA has retained the rating for the bank facilities of S.K. Agros
in the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 9.50 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Fund Based- 0.50 [ICRA]B (Stable);ISSUER NOT
Term Loan COOPERATING; Rating continues
to remain under the 'Issuer
Not Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
S.K. Agros is a partnership firm, engaged in the business of
milling, processing and selling of basmati rice, and has a fully
automated plant at Fazilka (Punjab) which has a milling capacity of
4 tonnes per hour. The by-products of basmati rice viz husk, rice
bran and 'phak' are sold in the domestic market.
SAANJ AUR: ICRA Keeps B+ Debt Rating in Not Cooperating Category
----------------------------------------------------------------
ICRA has retained the rating for the bank facilities of Saanj Aur
Savera Educational and Welfare Trust in the 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]B+ (Stable);
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 10.30 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
SAS was formed in 2003 and runs the Delhi Public School in Pinjore
(Haryana), which commenced operations in AY 200405. The trust is
managed by a four-member committee, headed by Dr. D. R. Arora. In
addition to the senior secondary school under SAS, the trustees
have also set up pre-schools (under the name Shemrock) and senior
secondary schools (under the name Shemford) across the country,
which are primarily managed by franchisees.
SIDDARTH ORGANISATION: ICRA Keeps B+ Ratings in Not Cooperating
---------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Siddarth
Organisation in the 'Issuer Not Cooperating' category. The ratings
are denoted as "[ICRA]B+ (Stable)/[ICRA]A4; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 2.16 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term/ 7.84 [ICRA]B+ (Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain
under issuer not cooperating
category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Siddarth Group (SG) was established in 1984 in Jaipur. Siddarth
Group is engaged in the manufacturing of ladies garments, kids
garments, scarfs and fashion accessories. Siddarth Group comprises
of three Independent units producing Ladies and Children Garments
namely Siddarth Organisation, Siddarth Organisation Limited and
Siddarth Intercraft Private Limited. The factory is geared up to
deliver 2 million Garments annually. The company is engaged in
manufacturing and trading of garments primarily for women (such as
kurtis, cardigans, tops, coats, tunics, leggings, dresses, pants,
leggings & salwar kameez).
SINDHU TRADE: Ind-Ra Keeps 'D' Issuer Rating in NonCooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Sindhu Trade
Links Limited's Long-Term Issuer Rating in the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR0.7 mil. Fund-based limits (Long-term/Short-term)
maintained in the non-cooperating category with IND D (ISSUER
NOT COOPERATING) rating;
-- INR1.9 mil. Non-fund-based limits (Long-term/Short-term)
maintained in the non-cooperating category with IND D (ISSUER
NOT COOPERATING) rating; and
-- INR1.6 mil. Term loan (Long-term) due on March 2023 Maintained
in the non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
September 1, 2021. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
Company Profile
Sindhu Trade Links is engaged in the business of transportation
services, along with the trading of oil and lubricants. The
company's subsidiaries are engaged in media, automobiles and spare
parts, bio-power generation and coal mining operations.
TD TOLL: ICRA Keeps D Debt Rating in Not Cooperating Category
-------------------------------------------------------------
ICRA has retained the long-term of TD Toll Road Private Limited in
the 'Issuer Not Cooperating' category. The rating is denoted as
[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 301.40 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
TD Toll Road Private Limited (TDTRPL, the company) was incorporated
in March 2007 as a wholly owned subsidiary of Reliance
Infrastructure Limited (R-Infra) to implement the project for
strengthening and widening the Trichy to Dindigul stretch of
National Highway (NH) 45 in Tamil Nadu from the existing two-lane
to a four-lane one. The project was awarded by the National
Highways Authority of India (NHAI) on a Build-Operate-and-Transfer
(BOT) basis with a concession period of 30 years commencing from
January 15, 2008. The project became operational and started
tolling from January 2012.
TK TOLL: ICRA Keeps D Debt Rating in Not Cooperating Category
-------------------------------------------------------------
ICRA has retained the long-term of TK Toll Road Private Limited in
the 'Issuer Not Cooperating' category. The rating is denoted as
[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 370.95 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
TK Toll Road Private Limited (TKTRPL) was incorporated in March
2007 as a wholly owned subsidiary of R-Infra, to implement the
project for strengthening and widening the existing two-lane
stretch of NH-67 from Trichy to Karur in Tamil Nadu to a fourlane
one. The project was awarded by the National Highways Authority of
India (NHAI) on a BOT basis with a concession period of 30 years
commencing from January 15, 2008. The project became operational
and started tolling on 75% of the total stretch, i.e., ~63 km from
February 2014.
VEDAMATHA ENTERPRISES: ICRA Keeps D Rating in Not Cooperating
-------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Vedamatha
Enterprises Pvt Ltd. in the 'Issuer Not Cooperating' category. The
ratings is denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 12.50 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based/CC Rating Continues to remain under
'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Vedamatha Enterprises Pvt Ltd ("VPPL") was incorporated in 2002,
and is currently involved in the decorative laminations business as
a distributor of Greenlam Industries Ltd for Bangalore, under a
partnership firm named as "Vishaka Enterprises". The company also
trades in silk sarees through its retail show room 'Devanad Silks'
in Chichpet, Bangalore through a partnership firm named "Devanand
Marketing". Since inception till June 2015, the company has been a
distributor of HUL's FMCG products for the Bangalore City area.
VEERAJ CONSTRUCTION: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
ICRA has retained the rating for the bank facilities of Veeraj
Construction in the 'Issuer Not Cooperating' category. The ratings
are denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 3.50 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short-term 6.50 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Continues to remain under the
'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Veeraj Construction, a partnership firm based out of Nashik,
Maharashtra, is involved in executing irrigation and water supply
projects on a turnkey basis. The firm was established as a
proprietorship firm in 2006 by Mr. Sanjay Kotecha who traces his
lineage to Kotecha Group which is a manufacturer of prestressed
pipes in India. The proprietorship concern was converted into a
partnership firm in 2009, with Mrs. Vandana Kotecha, wife of Mr.
Sanjay, as the other partner.
=========
J A P A N
=========
JAPAN: SMFG to Pour $1.5BB Into Helping Companies Turn Around
-------------------------------------------------------------
Nikkei Asia reports that Sumitomo Mitsui Financial Group will pour
roughly JPY200 billion (US$1.5 billion) within a couple of years
into helping struggling companies turn around.
According to Nikkei, SMFG subsidiary SMBC Capital Partners will
invest in companies that need help with corporate revitalization or
business succession. SMFG and SMBC Capital Partners have helped
struggling companies so far by taking a minority stake in them.
SMFG will be the first megabank in Japan to take a majority stake
in companies to help them turn around.
===============
M A L A Y S I A
===============
IMPIANA HOTELS: Unit Escapes Winding Up Petition Over Unpaid Sum
----------------------------------------------------------------
theedgemarkets.com reports that Impiana Hotels Bhd has announced
that the winding up petition served by Axventure Sdn Bhd over an
unpaid sum amounting to MYR2.26 million relating to a resort
redevelopment has been amicably resolved.
In a bourse filing on Dec. 2, Impiana said Axventure on Dec. 2
filed a notice of discontinuance to discontinue the petition
against Impiana's wholly-owned subsidiary Impiana Cherating Sdn Bhd
with liberty to file afresh, theedgemarkets.com relates.
It comes just days before a case management via e-review on the
matter, which had previously been fixed on Dec 13.
Last month, Impiana obtained legal advice besides announcing its
intention to contest the winding-up petition vigorously, having
noted that Impiana Cherating is able to settle the amount claimed
and that there is no need to liquidate the assets of Impiana
Cherating to settle the amount.
According to the report, Impiana Cherating had earlier this year
been served an adjudication claim from Axventure for work done
until 2020 relating to Phases 1 and 2 of the redevelopment of
Impiana Resort & Residences Cherating.
Subsequently, Axventure had on Aug. 26 served Impiana Cherating a
notice of demand over an outstanding sum of MYR2.26 million,
comprising the adjudication sum of MYR2.25 million, together with
costs awarded by the High Court.
The winding up proceedings were then commenced after the MYR2.26
million unpaid sum was not fulfilled, theedgemarkets.com relates.
Impiana's current book value investment in Impiana Cherating is
MYR72.58 million, according to its Nov. 10 bourse filing.
Impiana Hotels Berhad is a Malaysia-based investment holding
company. The Company's segments include Hospitality business and
Property development. The Hospitality business segment is engaged
in the management and operation of hotels and resorts, property
investment and hotel development. The Property development segment
is engaged in property development activities. The Company's wholly
owned subsidiaries include Impiana Ipoh Sdn. Bhd. (IISB), which is
engaged in investment holding, management and operation of hotels
and resorts, property investment and hotel development; Impiana
Hotels & Resorts Management Sdn. Bhd. (IHRM), which is involved in
providing professional management services to hotels, resorts and
recreation clubs; Impiana Cherating Sdn. Bhd. (ICSB), which is
engaged in property development, operation of resort, hotel
business and related services, and Astaka Mekar Sdn. Bhd. (AMSB).,
which is engaged in investment holding activities.
=====================
N E W Z E A L A N D
=====================
ABUSHMAN CONTRACTOR: Court to Hear Wind-Up Petition on Dec. 14
--------------------------------------------------------------
A petition to wind up the operations of Abushman Contractor Limited
will be heard before the High Court at Gisborne on Dec. 14, 2022,
at 10:45 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Oct. 12, 2022.
The Petitioner's solicitor is:
Charles David Walmsley
Inland Revenue, Legal Services
21 Home Straight
PO Box 432
Hamilton
CONTACT CENTRES: Creditors' Proofs of Debt Due on Dec. 8
--------------------------------------------------------
Creditors of Contact Centres New Zealand Limited are required to
file their proofs of debt by Dec. 8, 2022, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Aug. 9, 2022.
The company's liquidators are:
David Ian Ruscoe
Mark Terence McDonald
Grant Thornton New Zealand
PO Box 10712
Wellington
COROMANDEL LIMITED: Creditors' Proofs of Debt Due on Feb. 24
------------------------------------------------------------
Creditors of Coromandel Limited are required to file their proofs
of debt by Feb. 24, 2023, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Nov. 24, 2022.
The company's liquidators are:
Rachel Mason-Thomas
Jeffrey Philip Meltzer
Meltzer Mason, Chartered Accountants
PO Box 6302
Victoria Street West
Auckland 1141
GO TO COLLECTION: PwC Appointed as Administrators
-------------------------------------------------
Malcolm Hollis and John Fisk of PwC on Nov. 24, 2022, were
appointed as administrators of Go To Collection Limited.
The administrators may be reached at:
PwC
PO Box 13244
Christchurch
KAIMAHI MAORI: Court to Hear Wind-Up Petition on Dec. 14
--------------------------------------------------------
A petition to wind up the operations of Kaimahi Maori Limited Will
be heard before the High Court at Gisborne on Dec. 14, 2022, at
9:30 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Oct. 21, 2022.
The Petitioner's solicitor is:
Inland Revenue, Legal Services
21 Home Straight
PO Box 432
Hamilton
=================
S I N G A P O R E
=================
AGV GROUP: Court Enters Wind-Up Order
-------------------------------------
The High Court of Singapore entered an order on Nov. 25, 2022, to
wind up the operations of AGV Group Limited.
The company's liquidators are:
Mr. Leow Quek Shiong
Mr. Gary Loh Weng Fatt
c/o BDO Advisory
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
PIANIST STUDIO: Court Enters Wind-Up Order
------------------------------------------
The High Court of Singapore entered an order on Nov. 25, 2022, to
wind up the operations of The Pianist Studio Holdings Pte. Ltd.
United Overseas Bank Limited filed the petition against the
company.
The company's liquidators are:
Leow Quek Shiong
Gary Loh Weng Fatt
BDO Advisory
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
THALASSA ELPIDA: Creditors' Proofs of Debt Due on Jan. 2
--------------------------------------------------------
Creditors of Thalassa Elpida Pte. Ltd. and Thalassa Patris Pte.
Ltd. are required to file their proofs of debt by Jan. 2, 2023, to
be included in the company's dividend distribution.
The company commenced wind-up proceedings on Nov. 25, 2022.
The liquidators can be reached at:
Juay Sze Sin
Shirley Lim Guat Hua
c/o Complete Corporate Services Pte Ltd
10 Anson Road
#29-07 International Plaza
Singapore 079903
THREE ARROWS: Founders Still Not Cooperating With Asset Recovery
----------------------------------------------------------------
Reuters reports that liquidators for Three Arrows Capital (3AC)
said on Dec. 2 that the company's founders are refusing to
cooperate with asset recovery efforts, hindering the company's
ability to return funds to creditors.
Founders Kyle Davies and Su Zhu are more interested in
rehabilitating their reputation than helping their own company's
creditors, the liquidators' attorney Adam Goldberg said in
bankruptcy court in New York, Reuters relays. Mr. Davies has done
interviews recently commenting on the implosion of crypto exchange
FTX, attempting to shift blame for Three Arrows' own collapse.
"It's interesting to say the least, that the first time we've heard
this theory that FTX caused the downfall of this debtor was after
FTX's own sensational collapse," Reuters quotes Mr. Goldberg as
saying.
Reuters relates that Mr. Davies said in a Nov. 16 interview with
CNBC that FTX and its affiliated trading platform Alameda Research
"hunted our positions," crashed the price of the cryptocurrency
Luna, and "took us down." Mr. Davies also said he was cooperating
with the fund's liquidators.
Mr. Goldberg disputed Mr. Davies' assertions on Dec. 2, saying that
he and Zhu took steps to undermine asset recovery efforts, Reuters
says.
Someone had "ransacked" hard drives from locked Three Arrows
offices before the liquidators gained access, and investigators
determined that the founders had spent company money on a
super-yacht called "Much Wow," Mr. Goldberg said. The liquidators
are attempting to recover $30 million spent on the yacht, and will
bring other recovery actions in the near future, Mr. Goldberg
said.
According to Reuters, Three Arrows said in a Dec. 2 court filing
that the founders are currently based in the United Arab Emirates
and Indonesia, countries not known for cooperating with
international court orders.
Despite incomplete access to records and accounts, Three Arrows'
liquidators have recovered some assets belonging to creditors,
including $35 million in U.S. dollars and several different
cryptocurrency tokens, liquidator Russell Crumpler said in court.
Recovery efforts are ongoing, Mr. Crumpler said.
Reuters relates that Mr. Crumpler did not say how much
cryptocurrency the liquidators have recovered, but he said that
Singapore-based Three Arrows has regained control over accounts
that held more than 60 different types of cryptocurrency tokens.
About Three Arrows Capital
Three Arrows Capital Ltd. was an investment firm engaged in
short-term opportunities trading, and is heavily invested in
cryptocurrency, funded through borrowings.
As of April 2022, the Debtor was reported to have over $3 billion
of assets under its management.
Three Arrows Capital Ltd. was incorporated as a business company
under the laws of the British Virgin Islands. Its sole shareholder
owning all of its "management shares" is Three Arrows Capital Pte.
Ltd., which previously operated as a regulated fund manager in
Singapore until 2021, when it shifted its domicile to the BVI, as
part of a global corporate plan to relocate operations to Dubai.
The Debtor borrowed digital and fiat currency from multiple lenders
to fund its cryptocurrency investments. After cryptocurrency lost
99% of its value, and then prices of other cryptocurrencies had
rapid declines, the Debtor reportedly defaulted on its
obligations.
On June 24, 2022, one of the Debtor's many creditors -- DRB Panama
Inc. -- filed an application to appoint joint provisional
liquidators -- and thereafter, full Liquidators -- in the Eastern
Caribbean Supreme Court in the High Court of Justice (Commercial
Division) located in BVI. The application was assigned claim number
VIHCOM2022/0117.
Subsequently, on June 27, 2022, the Debtor filed its own
application for the appointment of joint liquidators before the BVI
Commercial Court.
On June 29, 2022, the Honorable Mr. Justice Jack of the BVI
Commercial Court appointed Russell Crumpler and Christopher Farmer
of Teneo (BVI) Limited as joint liquidators of Three Arrows Capital
Ltd.
On July 1, 2022, liquidators of Three Arrows Capital filed a
Chapter 15 bankruptcy in the U.S. (Bankr. S.D.N.Y. Case No.
22-10920) to seek recognition of the BVI proceedings. Judge Martin
Glenn is the case judge. Latham & Watkins, led by Adam J. Goldberg
is counsel in the U.S. case.
The law firm of Ogier, led by Grant Carroll, is advising the
liquidators in the BVI proceedings.
V.SPEC ENGINEERING: Court to Hear Wind-Up Petition on Dec. 16
-------------------------------------------------------------
A petition to wind up the operations of V.Spec Engineering &
Supplies Pte Ltd will be heard before the High Court of Singapore
on Dec. 16, 2022, at 10:00 a.m.
The Hongkong And Shanghai Banking Corporation Limited filed the
petition against the company on Nov. 25, 2022.
The Petitioner's solicitors are:
Rajah & Tann Singapore LLP
9 Straits View
#06-07 Marina One West Tower
Singapore 018937
WING WAI: Court to Hear Wind-Up Petition on Dec. 16
---------------------------------------------------
A petition to wind up the operations of Wing Wai Global Pte Ltd
will be heard before the High Court of Singapore on Dec. 16, 2022,
at 10:00 a.m.
=================
S R I L A N K A
=================
SRI LANKA: Fitch Lowers LongTerm Local Currency IDR to 'CC'
-----------------------------------------------------------
Fitch Ratings has downgraded Sri Lanka's Long-Term Local-Currency
Issuer Default Rating (IDR) to 'CC', from 'CCC', and has affirmed
the Long-Term Foreign-Currency IDR at 'RD' (Restricted Default).
Fitch typically does not assign Outlooks to ratings of 'CCC+' or
below.
Fitch has also removed the Long-Term Local-Currency IDR from Under
Criteria Observation, on which it was placed on July 14, 2022,
following the publication of the updated Sovereign Rating
Criteria.
KEY RATING DRIVERS
Challenging Domestic Financing Outlook: Sri Lanka continues to
service its local-currency debt, but the downgrade of the Long-Term
Local-Currency IDR reflects its view that a local-currency debt
default is probable, in view of an untenably high domestic interest
payment/revenue ratio, high interest costs, tight domestic
financing conditions and rising local-currency debt/GDP in the
context of high domestic fiscal financing requirements, which
authorities forecast at about 8% of GDP in 2022.
According to authorities, domestic interest payments in 8M22 were
LKR718.8 billion, taking the domestic interest/revenue ratio to an
estimated 56% in 8M22; the highest among sovereigns rated 'CCC+'
and below. Reliance on central bank financing has increased, as
domestic options are limited. Domestic debt rose to about 53% of
government debt by end-July 2022, according to official provisional
data. Treasury bill issuance has been increasing. Fitch expects a
local debt restructuring would aim to maintain financial system
stability, for example, by extending maturities or lowering coupon
payments, rather than a reduction in face value. Sri Lanka
continues to service its local-currency debt.
External Debt Restructuring: The sovereign remains in default on
foreign-currency obligations and has initiated a debt restructuring
arrangement with official and private external creditors. The
Ministry of Finance issued a statement on 12 April 2022 that it had
suspended normal debt servicing of several categories of external
debt, including bonds issued in international capital markets,
foreign currency-denominated loan agreements and credit facilities
with commercial banks and institutional lenders.
Fitch downgraded the Long-Term Foreign-Currency IDR to 'RD'
following the expiry of the 30-day grace period on coupon payments
that were due on 18 April 2022. A staff level agreement with the
IMF was reached on 1 September for USD2.9 billion, for 48 months,
under the Extended Fund Facility. The facility will not be approved
until Sri Lanka has implemented agreed actions, financing
assurances have been received from official creditors and
good-faith efforts have been made to reach agreement with private
creditors. The timing of completion of the external debt
restructuring remains uncertain.
Banking Sector Faces Tight Liquidity: Sri Lankan banks' access to
foreign-currency funding is constrained by the sovereign default.
Any local-currency debt restructuring would elevate funding and
liquidity stress, given the predominance of local-currency funding,
at 74% of the total, and large holdings of local
currency-denominated government securities. A restructuring could
necessitate recapitalisation by the government, though further
regulatory forbearance measures could keep banks compliant with
regulatory minimums on a reported basis, however, underlying
capital positions could stay weak.
Budget Aims for Fiscal Consolidation: In the 2023 budget
authorities aim to lower the deficit to 9.8% of GDP in 2022 and
7.9% of GDP in 2023, factoring in high revenue growth and a pickup
in spending. It also aims to raise government revenue to 15% of GDP
by 2025 and reduce public sector debt to no more than 100% of GDP
over the medium term, in line with the IMF's target of a primary
surplus of 2.3% of GDP by 2025. Fitch expects a contraction in GDP
in 2023 and so are less optimistic on the government's fiscal
consolidation path. Fitch expects general government debt/GDP to
reach around 109% by end-2022.
Political Risks Weigh on Fiscal Outlook: Political instability
could threaten reform implementation. The government's
parliamentary position appears strong, but the government lacks
public support. This increases the risk of further destabilising
protests if economic conditions do not improve or reforms generate
public opposition. President Wickremesinghe was prime minister in
the previous administration under President Rajapaksa, who was
brought down by protests. Parliament and the government also remain
dominated by politicians who are affiliated with the Rajapaksa
family.
High Inflation: Inflation is high, although it has declined from
its September peak of 69.8% as measured by the Colombo Consumer
Price Index. Fitch expects headline inflation to fall further in
2023 on easing domestic supply conditions, lower food prices and
the impact of policy rate hikes. Risks remain, from a potential
commodity-price shock, particularly owing to the war in Ukraine.
Financing from the Central Bank has been a key funding source for
the government, but a new Central Bank Act, may limit such
financing in the future. Fitch believes rate hikes have peaked,
after a policy rate hike of 950bp in 2022.
Economy Contracting: Sri Lanka's economy contracted by a sharp 4.8%
yoy in 1H22 and Fitch expects a full-year GDP contraction of 6.0%.
There is still uncertainty about the pace of the country's economic
outlook in 2023, partly because the timing of the external debt
restructuring is unknown. Fitch forecasts growth to contract by
2.2% in 2023 then to pick up in 2024 under its baseline.
ESG - Governance: Sri Lanka has an ESG Relevance Score of '5' for
Political Stability and Rights as well as for Rule of Law,
Institutional and Regulatory Quality and Control of Corruption, as
is the case for all sovereigns. This reflects the high weight World
Bank Governance Indicators (WBGI) have in its proprietary Sovereign
Rating Model. Sri Lanka has a medium WBGI ranking in the 46th
percentile, reflecting a recent record of peaceful political
transitions, and moderate levels of rights for participation in the
political process, institutional capacity, established rule of law
and a level of corruption.
ESG - Creditor Rights: Sri Lanka has an ESG Relevance Score of '5'
for Creditor Rights, as willingness to service and repay debt is
highly relevant to the rating and is a key rating driver with a
high weight. The downgrade of Sri Lanka's Long-Term
Foreign-Currency IDR to 'RD' reflects a default event.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- The Long-Term Local-Currency IDR would be further downgraded if
the government announces plans to restructure or defaults on its
local currency-denominated debt.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Completion of a commercial debt restructuring that Fitch judges
to have normalised the relationship with private-sector creditors.
- The government puts local-currency debt service on a sustainable
path, and avoids a default or debt restructuring.
SOVEREIGN RATING MODEL (SRM) AND QUALITATIVE OVERLAY (QO)
Fitch's proprietary SRM assigns Sri Lanka a score equivalent to a
rating of 'CCC+' on the Long-Term Foreign-Currency IDR scale.
However, in accordance with its rating criteria, Fitch's sovereign
rating committee has not utilised the SRM and QO to explain the
ratings in this instance. Ratings of 'CCC+' and below are instead
guided by the rating definitions.
Fitch's SRM is the agency's proprietary multiple regression rating
model that employs 18 variables based on three-year centred
averages, including one year of forecasts, to produce a score
equivalent to a Long-Term Foreign-Currency IDR. Fitch's QO is a
forward-looking qualitative framework designed to allow for
adjustment to the SRM output to assign the final rating, reflecting
factors within its criteria that are not fully quantifiable and/or
not fully reflected in the SRM.
ESG CONSIDERATIONS
Sri Lanka has an ESG Relevance Score of '5' for Political Stability
and Rights as WBGIs have the highest weight in Fitch's SRM and are
highly relevant to the rating and a key rating driver with a high
weight. As Sri Lanka has a percentile rank below 50 for the
respective governance indicator, this has a negative impact on the
credit profile.
Sri Lanka has an ESG Relevance Score of '5' for Rule of Law,
Institutional & Regulatory Quality and Control of Corruption as
WBGIs have the highest weight in Fitch's SRM and are therefore
highly relevant to the rating and are a key rating driver with a
high weight. As Sri Lanka has a percentile rank below 50 for the
respective governance indicators, this has a negative impact on the
credit profile.
Sri Lanka has an ESG Relevance Score of '4' for Human Rights and
Political Freedoms, as the Voice and Accountability pillar of the
WBGIs is relevant to the rating and a rating driver. As Sri Lanka
has a percentile rank below 50 for the respective governance
indicator, this has a negative impact on the credit profile.
Sri Lanka has an ESG Relevance Score of '5' for Creditor Rights as
willingness to service and repay debt is highly relevant to the
rating and is a key rating driver with a high weight. The downgrade
of Sri Lanka's Long-Term Foreign-Currency IDR to 'RD' reflects a
default event.
Except for the matters discussed above, the highest level of ESG
credit relevance, if present, is a score of 3. This means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity(ies), either due to their nature or to the way in which
they are being managed by the entity(ies).
Entity/Debt Rating Prior
----------- ------ -----
Sri Lanka LT IDR RD Affirmed RD
ST IDR C Affirmed C
LC LT IDR CC Downgrade CCC
LC ST IDR C Affirmed C
Country Ceiling B- Affirmed B-
senior unsecured LT CC Downgrade CCC
senior unsecured LT D Affirmed D
*********
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-
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2022. All rights reserved. ISSN: 1520-9482.
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