/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/221222.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 Thursday, December 22, 2022, Vol. 25, No. 249 Headlines A U S T R A L I A ALLABOUTXPERT AUSTRALIA: First Creditors' Meeting Set for Dec. 23 AVANTI FINANCE: S&P Affirms 'BB/B' ICRs, Outlook Stable BROSA DESIGN: First Creditors' Meeting Set for Dec. 23 CONQUEST 2022-1: S&P Assigns BB+ Rating on Class E Notes DELIVEROO AUSTRALIA: Will Pay Creditors AUD19-Mil. by End of April NSW PLUMBING: Second Creditors' Meeting Set for Dec. 22 RESIMAC BASTILLE 2022-2NC: Moody's Gives B2 Rating to Cl. F Notes SKILLED BUILDING: Second Creditors' Meeting Set for Dec. 29 SWYFTX: Merger Plan With Superhero Scrapped THIESS GROUP: Moody's Affirms 'Ba1' CFR, Outlook Stable TRIGON TRADING: First Creditors' Meeting Set for Dec. 28 YOUPLA GROUP: ASIC Seeks to Preserve Property of Former Director C H I N A CHINA EVERGRANDE: Resumes Work on Pre-Sold Projects N E W Z E A L A N D AIRPORT NINE: Creditors' Proofs of Debt Due on Feb. 15 GOOD SPIRITS: To Sell 9 Bars After Losses Mount During Pandemic LQNZ1 (EFGNZ): Creditors' Proofs of Debt Due on Jan. 27 SHARKYS ENGINEERING: Court to Hear Wind-Up Petition on Feb. 9 UCCAL S: Creditors' Proofs of Debt Due on Jan. 19 ULTIMATE CONTRACTING: Court to Hear Wind-Up Petition on Feb. 10 WESTMINSTER GROUP: Creditors' Proofs of Debt Due on Feb. 9 S I N G A P O R E GCAP PROPERTIES: Members' Final Meeting Set for Jan. 25 IBC CAPITAL: S&P Affirms 'B-' ICR & Alters Outlook to Stable KITCHEN CULTURE: 'Intends Vehemently to Resist' Ooway's Legal Suit SUNEDISON PRODUCTS: Final Meeting Set for January 20 WIRECARD SG: Final Meeting Set for Jan. 19 S O U T H K O R E A SOUTH KOREA: Concerns Mount on Bankruptcy of Profit-making Firms - - - - - ================= A U S T R A L I A ================= ALLABOUTXPERT AUSTRALIA: First Creditors' Meeting Set for Dec. 23 ----------------------------------------------------------------- A first meeting of the creditors in the proceedings of AllAboutXpert Australia Pty Limited and AllAboutXpert Technologies Pty Ltd will be held on Dec. 23, 2022, at 11:00 a.m. at Suite 21.02 Level 21 Australia Square, 264 George Street in Sydney and via electronic facilities. Glenn Livingstone and Alan Walker of WLP Restructuring were appointed as administrators of the company on Dec. 13, 2022. AVANTI FINANCE: S&P Affirms 'BB/B' ICRs, Outlook Stable ------------------------------------------------------- S&P Global Ratings affirmed its 'BB' long-term and 'B' short-term issuer credit ratings on Avanti Finance Ltd. The outlook is stable. S&P said, "The affirmation of our ratings on Avanti reflects the finance company's (finco) very strong capital position. We project the RAC ratio for Avanti to remain between 16.0% and 16.5% over the next 12 months. This reflects lower-than-previously forecast loan growth, given credit demand in New Zealand is slowing. Further, we anticipate Avanti's exposure to property development loans to reduce as New Zealand property prices continue to fall. "In our Research Update on Avanti published on Oct. 17, 2022, we misstated the RAC ratio as of June 30, 2022, due to a misapplication of our Risk-Adjusted Capital Framework Methodology, published on July 20, 2017. The correct ratio at this date was 16.0%. "We expect that Avanti would raise additional capital to support its current capital position in the event that market conditions, including the overall asset quality of the wider New Zealand lending sector, were to deteriorate beyond our current base case. "We believe Avanti will maintain a defendable niche position providing lending servicers to customers not actively serviced by mainstream banks. While Avanti's lending activities are inherently riskier than those of banks, we believe the finco's diverse product offering, and lack of single-name concentration should allow it to maintain relatively stable earnings. "The stable outlook reflects our expectation that Avanti will maintain a RAC ratio of 16%-16.5% over the next 12 months, despite double-digit loan growth. As of June 30, 2022, our RAC ratio for the finco was 16.0%. "We see a negative economic risk trend for banks operating in New Zealand, reflecting the increasing risk of a sharp fall in property prices, and thus a potential significant increase in credit losses. We believe the finco would raise additional capital to maintain a RAC ratio of more than 15% if we were to consider economic risks for New Zealand banks have deteriorated and consequently applied higher risk weights in our RAC calculations. "We could lower our long-term rating on Avanti if the company continues to pursue aggressive loan growth without capital management initiatives to maintain its very strong capital, such that the RAC ratio falls below 15% on a sustained basis. The RAC ratio is likely to drop below 15% if we consider economic risks for New Zealand banks to have increased and Avanti does not raise capital to offset our higher risk weights." S&P is unlikely to upgrade Avanti over the next 12 months. BROSA DESIGN: First Creditors' Meeting Set for Dec. 23 ------------------------------------------------------ A first meeting of the creditors in the proceedings of Brosa Design Pty Ltd will be held on Dec. 23, 2022, at 12:00 p.m. via Zoom. Richard Tucker and Michael Korda of KordaMentha were appointed as administrators of the company on Dec. 14, 2022. CONQUEST 2022-1: S&P Assigns BB+ Rating on Class E Notes -------------------------------------------------------- S&P Global Ratings assigned its ratings to six classes of prime residential mortgage-backed securities (RMBS) issued by Perpetual Trustee Co. Ltd. as trustee of ConQuest 2022-1 Trust ConQuest 2022-1 Trust is a securitization of prime residential mortgages originated by MyState Bank Ltd. The ratings reflect: -- S&P's view of the credit risk of the underlying collateral portfolio, including the fact that this is a closed portfolio, which means no further loans will be assigned to the trust after the closing date. -- S&P's view that the credit support is sufficient to withstand the stresses we apply. This credit support comprises note subordination for all rated notes, excess spread, and mortgage insurance covering 16.0% of the portfolio. -- S&P's expectation that the various mechanisms to support liquidity within the transaction, including an excess revenue reserve, principal draws mechanism, and an amortizing liquidity facility equal to 1.00% of the invested amount of all notes are sufficient under our stress assumptions to ensure timely payment of interest. -- The extraordinary expense reserve of A$150,000, funded from day one by MyState Bank, available to meet extraordinary expenses. -- The reserve will be topped up via excess spread if drawn. -- The benefit of a fixed- to floating-rate interest-rate swap provided by ING Bank N.V. to hedge the mismatch between receipts from any fixed-rate mortgage loans and the variable-rate RMBS. Ratings Assigned ConQuest 2022-1 Trust Class A1, A$368.0 million: AAA (sf) Class A2, A$15.0 million: AAA (sf) Class B, A$8.2 million: AA (sf) Class C, A$3.7 million: A (sf) Class D, A$1.6 million: BBB (sf) Class E, A$1.5 million: BB+ (sf) Class F, A$2.0 million: Not rated The issuer has informed S&P Global Ratings Australia Pty Ltd. that the issuer will be publicly disclosing all relevant information about the structured finance instruments that are subject to this rating report. DELIVEROO AUSTRALIA: Will Pay Creditors AUD19-Mil. by End of April ------------------------------------------------------------------ The Sydney Morning Herald reports that the parent company of Deliveroo Australia will pay creditors AUD19 million by the end of April as administrators finalise the failed food delivery business' exit out of the Australian market. Deliveroo Australia entered the market in 2015 but never turned a profit and failed to stay competitive, burning AUD120 million this year alone before collapsing in November. Its demise left 121 Australian office staff and more than 14,000 local riders out of work, SMH says. SMH relates that in a virtual meeting on Dec. 21, creditors approved a proposal put forward by Deliveroo's UK parent, Roofoods, that would see creditors receive 100% of their claims. Eligible employees will receive 169% of the entitlements and eligible riders will receive 342% of the entitlements. Employee, riders, and suppliers will see the majority of owed monies, totaling AUD9.5 million, paid by the end of January, while lower-priority restaurant partners, customers and other unsecured creditors will receive their share from a pool of AUD9.3 million by the end of April, according to SMH. "Once these payments are made, all claims against Deliveroo Australia will be resolved and the creditors' trust will be dissolved and wound up," administrators KordaMentha said in a statement. Andrew Knight, Michael Korda, and Craig Shepard of KordaMentha were appointed as administrators of the company on Nov. 16, 2022. NSW PLUMBING: Second Creditors' Meeting Set for Dec. 22 ------------------------------------------------------- A second meeting of creditors in the proceedings of NSW Plumbing Pty Ltd has been set for Dec. 22, 2022, at 11:00 a.m. via virtual meeting only. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Dec. 21, 2022, at 5:00 p.m. Stephen John Hundy and Daniel Ivan Cvitanovic of Worrells were appointed as administrators of the company on Nov. 28, 2022. RESIMAC BASTILLE 2022-2NC: Moody's Gives B2 Rating to Cl. F Notes ----------------------------------------------------------------- Moody's Investors Service has assigned the following definitive ratings to the notes issued by Perpetual Trustee Company Limited as trustee of RESIMAC Bastille Trust Series 2022-2NC. Issuer: Perpetual Trustee Company Limited as trustee of RESIMAC Bastille Trust Series 2022-2NC AUD95.0 million Class A1 Notes, Assigned Aaa (sf) AUD280.0 million Class A2 Notes, Assigned Aaa (sf) AUD50.0 million Class AB Notes, Assigned Aaa (sf) AUD43.5 million Class B Notes, Assigned Aa2 (sf) AUD8.0 million Class C Notes, Assigned A2 (sf) AUD8.0 million Class D Notes, Assigned Baa2 (sf) AUD7.5 million Class E Notes, Assigned Ba2 (sf) AUD3.5 million Class F Notes, Assigned B2 (sf) The AUD4.5 million Class G Notes are not rated by Moody's. The transaction is a securitisation of first-ranking mortgage loans secured over residential properties located in Australia. The loans were originated and are serviced by RESIMAC Limited (RESIMAC, unrated). RESIMAC is an Australian non-bank lender, specialising in non-conforming and prime residential mortgage lending. As of September 30, 2022, RESIMAC's Australian mortgage portfolio was around AUD15.6 billion. RATINGS RATIONALE The ratings take into account, among other factors, an evaluation of the underlying receivables and their expected performance, evaluation of the capital structure and credit enhancement provided to the notes, availability of excess spread over the life of the transaction, the liquidity facility in the amount of 1.5% of the notes balance, the legal structure, the experience of RESIMAC as servicer and the presence of Perpetual Trustee Company Limited as the backup servicer. According to Moody's, the Class A1 and Class A2 Notes (together, the Class A notes) benefit from 25.00% subordination compared with the 13.20% MILAN CE. However, Moody's notes that the transaction features some credit weaknesses such as a relatively high weighted average scheduled LTV (72.8%) and loans underwritten on an alternative documentation basis (91.8%). Moody's MILAN CE — representing the loss that Moody's expects the portfolio to suffer in the event of a severe recession scenario — is 13.2%. Moody's expected loss for this transaction is 1.4%. Key transactional features are as follows: Initially, principal payments will be made sequentially, starting with Class A1 Notes. All classes of notes, excluding the Class G Notes and Class Z Notes, will start receiving their pro-rata share of principal on a payment date 24 months after closing, provided that other step-down conditions are met. These include, among others, no unreimbursed charge-offs and at least 26.4% subordination to the Class A Notes. Principal payments will revert to sequential on and after the call option date, occurring on the earlier of the payment date falling in January 2026 and when the invested balance of notes falls below 20% on the initial balance of the notes. The servicer is required to maintain the weighted average interest rates on the mortgage loans at a level sufficient for the trust to meet the required payments when due, plus 0.25%. Under the retention mechanism, excess spread remaining after reimbursement of losses, carry-over charge-offs and payment of Class G interest is used to repay principal on the Class F Notes, up to AUD5,000,000, thereby limiting their exposure to losses. Issuance of an equivalent amount of subordinated Class Z Notes at the same time will preserve the level of credit enhancement available to the more senior ranking notes. Key pool features are as follows: The pool has a weighted-average scheduled loan-to-value (LTV) of 72.8%, although only 5.9% of the loans have scheduled LTVs over 80%. The pool has a weighted average seasoning of 13.9 months. At least 79.9% of loans in the pool are to self-employed borrowers. The income of these borrowers is subject to higher volatility than employed borrowers, and they may experience higher default rates. For further 9.3% of loans, borrower employment type is not provided, and for 0.9% of loans it is classified as other. Alternative documentation loans make up around 91.8% of the pool. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Moody's Approach to Rating RMBS Using the MILAN Framework" published in July 2022. Factors that would lead to an upgrade or downgrade of the ratings: Upgrade Levels of credit protection that are greater than necessary to protect investors against current expectations of loss could lead to an upgrade of the ratings. Moody's current expectations of loss could be better than its original expectations because of fewer defaults by underlying obligors or higher recoveries on defaulted loans. The Australian job market and the housing market are primary drivers of performance. Downgrade A factor that could lead to a downgrade of the ratings is worse-than-expected collateral performance. Other reasons that could lead to a downgrade include poor servicing, error on the part of transaction parties, a deterioration in the credit quality of transaction counterparties, or lack of transactional governance, and fraud. SKILLED BUILDING: Second Creditors' Meeting Set for Dec. 29 ----------------------------------------------------------- A second meeting of creditors in the proceedings of Skilled Building Services Pty. Ltd. has been set for Dec. 29, 2022, at 3:00 p.m. via virtual meeting only. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Dec. 28, 2022, at 4:00 p.m. Michael Gregory Jones of Jones Partners was appointed as administrator of the company on Nov. 23, 2022. SWYFTX: Merger Plan With Superhero Scrapped ------------------------------------------- SmartCompany reports that share trading platform Superhero's planned AUD1.5 billion merger with Australian cryptocurrency exchange Swyftx has been scrapped, as violent market volatility and the looming threat of regulation scupper advanced plans to create a financial 'super app'. As first reported by The Australian Financial Review on Dec. 20, the June decision to merge the companies into an 800,000-customer unicorn is no more, with Superhero's co-founders, and a coterie of early investors, set to buy the company back, SmartCompany relays. "After discussions with Swyftx's leadership and its board, we came to the decision that demerging is in the best interests of Superhero, our team and our customers," said co-founder John Winters in a written statement. "Superhero will return to being independently owned by myself and my co-founder Wayne Baskin as well as our loyal investors who have supported the growth of Superhero since 2018," he added. According to SmartCompany, Mr. Winters thanked Swyftx co-founders Alex Harper and Angus Goldman for their support, which promised to create the first Australian app capable of handling traditional share trading and cryptocurrency investments in one platform. The decision comes at the tail-end of a bruising year for cryptocurrency investors and the platforms facilitating their trades, the report notes. SmartCompany notes that Swyftx this month announced layoffs for approximately 40% of its workforce, as it braced for the potential of further market ructions in the vein of FTX's spectacular collapse. "The volatility in the market as well as the current regulatory environment has made it increasingly difficult to achieve the initial vision that inspired the merger earlier this year," Mr. Winter wrote. SmartCompany says recent regulatory interventions include the Australian Securities and Investments Commission's lawsuit against Finder, alleging its crypto-based Finder Earn investment product sidestepped financial licencing guidelines. Other players, like Block Earner, are also facing legal action from the corporate watchdog over similar concerns. More broadly, Labor has recently confirmed a consultation paper on the federal government's 'token mapping' report will arrive in early 2023, asking stakeholders for their views on which assets should be regulated under financial services law, and how to best operate custodial and licensing arrangements. Mr. Winters did not directly respond to questions SmartCompany posed about those legal and regulatory movements. However, the Swyftx demerger signals the end, for now, of Superhero's plans to incorporate crypto trading, SmartCompany states. "Given the current market volatility as well as regulatory pressure and subdued customer demand, for the time-being Superhero has no plans to add crypto trading to the platform," SmartCompany quotes Mr. Winters as saying. "We have always taken a conservative approach when it comes to compliance and regulation and will continue to engage with our key regulatory stakeholders when adding additional product offerings." The decision to pull out of the merger will not impact staff numbers at Superhero, he added. "There are no plans for any Superhero staff to leave the business and we are still recruiting for a number of key roles," Mr. Winter said, while thanking team members for their efforts during a "turbulent time" for the business. THIESS GROUP: Moody's Affirms 'Ba1' CFR, Outlook Stable ------------------------------------------------------- Moody's Investors Service has affirmed the Ba1 corporate family rating of Thiess Group Holdings Pty Ltd. The outlook is stable. RATINGS RATIONALE "The rating affirmation reflects Thiess' market-leading position as one of the world's largest, full-service mining services providers," says Saranga Ranasinghe, a Moody's Vice President and Senior Analyst. Thiess is one of only a handful of mining services providers that is capable of providing 'full life of mine services' to its clients at mine sites. This position makes Thiess' services hard to replace, given that it is responsible for all aspects of operations at the mine site, which is reflected in the strong renewal rate of its contracts. Thiess has a long operating history and well-established relationships with large, low cost miners. In November 2022, Thiess completed the acquisition of MACA Limited (MACA). The transformative acquisition is credit positive as it strengthens Thiess' market position and scale and provides an immediate improvement to its commodity diversification. The transaction was funded via an injection of preference shares from Thiess' shareholders, CIMIC Group Limited (Baa3 stable) and Elliot Partners. Following the MACA acquisition, Thiess' commodity diversification has improved with a reduction in its exposure to thermal coal and increase in metals and minerals including gold and iron ore. Pro forma for the acquisition, Thiess' thermal coal exposure reduced to 34% from 48% and the proportion of work in hand exposed to thermal coal to 31%. Thiess has a strategic goal of reducing thermal coal exposure to less than 25% by 2027. With the reduction in exposure to thermal coal, Thiess' carbon transition risk has improved from E-5 ("very highly negative") to E-4 ("highly negative"). Carbon transition risk is a key risk identified under the Moody's environmental framework. The combined group has around $15.1 billion of work in hand and long contracts that provide good forward revenue visibility. The company has also operated through many industry cycles and is able to manage its cost base in downcycles. The affirmation also reflects the company's financial policy, which includes operating below 2x on a net debt/EBITDA basis and total distributions not exceeding free cash flow generated in the prior year. Pro-forma Net debt/EBITDA for the twelve months ended June 2022 was 1.7x. Moody's expects Thiess to have sufficient headroom below this threshold under the rating agency's base case assumptions over the next 12-18 months. The rating is balanced by the company's indirect exposure to the cyclical mining sector, although its exposure to thermal coal customers that are facing carbon transition risk has reduced significantly with the MACA acquisition; its private entity status with private equity ownership; and Moody's expectation for the company to have onerous dividend requirements that will limit the cash flow retained, which are key risks identified under Moody's environmental and governance frameworks. The stable outlook reflects Moody's expectation that the company will continue to renew its existing contracts, win new contracts, and operate within the parameters set for the rating. Liquidity Thiess' liquidity is solid. The company had a combined cash balance of $264 million as of June 30, 2022. The company also has $190 million in an undrawn revolving credit facility that will mature in late 2023. Thiess' short-term debt, which amounts $255 million as of 2021, corresponds mainly to its current portion of lease liabilities. Under Moody's base sensitivities, these sources of liquidity, combined with cash flow from operations, are likely to be sufficient to cover the company's capital spending and dividend payouts. ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CONSIDERATIONS Thiess' ratings take into account environmental, social and governance factors. Thiess' E-4 (highly negative) environmental risk score is driven by high carbon transition risks due to its relatively high exposure to the thermal coal mining sector. While coal demand in Asia will be stronger than in other regions, policies favoring renewables, the declining cost of renewables and the development of disruptive technologies will increase long-term risks for coal-driven power companies, and subsequently, for thermal coal producers, which are Thiess' customers. This risk is balanced by the company's clear strategy to diversify and grow their presence in metals and minerals including gold and iron ore – a strategy already in execution as evidenced by the MACA acquisition. Thiess' S-4 (highly negative) social risk score is driven by its exposure to social risks associated with the mining industry, including health and safety, responsible production, and demographic and societal trends. Thiess' G-3 (moderately negative) governance risk score reflects its concentrated ownership by a private equity firm and the high dividend requirement on its preference shares. As a private company, Thiess is not subject to regulatory disclosure requirements, reducing transparency around its financial and operating performance. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING Thiess' rating is not likely to be upgraded in the near term due to Thiess' high dividend payout requirements given a significant portion of its capital structure is made up of preference shares, which have dividend payout requirements. However, Moody's could upgrade the rating over time if Thiess continues its commodity diversification strategy to reduce its exposure to the thermal coal industry and diversifies its commodity exposure while remaining committed to a financial policy that is commensurate with a higher rating, moves to a fully unsecured debt platform, and the capital structure improves such that preference shares with onerous dividend payout requirements make up a significantly smaller portion of the capital structure. Thiess' ratings could come under downward pressure if the company fails to renew material contracts or win new contracts, or if operating conditions deteriorate significantly. At the same time, the ratings could be downgraded if there is a deviation from the stated financial policy of 2x net debt/EBITDA and/or dividends to shareholders are higher than Moody's expectations. The principal methodology used in this rating was Business and Consumer Services published in November 2021. Thiess Group Holdings Pty Ltd, incorporated in 1934, has been a part of CIMIC Group Limited (Baa3 stable) since 1983. Thiess is one of world's largest full-service mining services provider with revenues of around $3.3 billion for the year ended December 2021. TRIGON TRADING: First Creditors' Meeting Set for Dec. 28 -------------------------------------------------------- A first meeting of the creditors in the proceedings of Trigon Trading Pty Ltd will be held on Dec. 28, 2022, at 10:00 a.m. at the offices of Unit 1, 78 Logan Road at Woolloongabba 4102. William Roland Robson and William Paul Cotter of Robson Cotter Insolvency Group were appointed as administrators of the company on Dec. 16, 2022. YOUPLA GROUP: ASIC Seeks to Preserve Property of Former Director ---------------------------------------------------------------- The Australia Securities and Investmens Commission (ASIC) has commenced proceedings in the Federal Court as part of its ongoing investigation into the collapse of the Youpla Group entities. The injunctive proceedings seek to preserve a property part owned by a former director, Mr. Bryn Jones. The purpose of ASIC's action is to protect the interests of aggrieved persons, namely the Youpla Group entities, and preserve the asset for their benefit. ASIC is currently investigating the conduct of the current and former directors of the Youpla Group entities for alleged contraventions of the Corporations Act. ASIC obtained interim orders on December 13, 2022. Orders were made on December 20, 2022 by way of consent. The matter is to be listed for a further hearing no later than May 31, 2023. Youpla Group customers do not need to take any action. They should continue to contact the liquidator, SV Partners, with any enquiries. Visit ASIC's Youpla Group key matters page or NSW Fair Trading's Youpla Group page for more information on the liquidation of the Youpla Group entities. Seven Youpla Group entities went into liquidation between November 2021 and April 2022. Mr. David Stimpson of SV Partners is the liquidator for the entities in the group. Mr. Jones was a director of ACBF Community from October 2017 to January 2021, a director of Youpla Group, ACBF 1, ACBF 2, ACBF Plans and Youpla Admin from December 2017 to January 2021 and CEO of Youpla Admin from September 2019 to December 2020. On October 28, 2022, ASIC and NSW Fair Trading jointly applied to the Supreme Court for orders appointing special purpose liquidators to investigate whether money can be recovered for creditors of the Youpla Group companies. On December 8, 2022, the Court made orders appointing Mr. Derrick Vickers and Ms. Melissa Humann of PwC as special purpose liquidators of the Youpla Group entities. Mr. Stimpson remains the general purpose liquidator of the Youpla Group. On October 29, 2020, ASIC commenced civil penalty proceedings in the Federal Court against Youpla Group and its subsidiary ACBF Plans alleging that from January 1, 2015 to November 30, 2018, ACBF made misleading and deceptive statements in offering, promoting and selling the Aboriginal Community Funeral Plan.  The matter was heard on November 22, 2022. Judgment has been reserved. ========= C H I N A ========= CHINA EVERGRANDE: Resumes Work on Pre-Sold Projects --------------------------------------------------- Reuters reports that China Evergrande Group said on Dec. 20 it has resumed work on 631 pre-sold and undelivered projects as the debt-laden real estate developer looks to meet its property delivery target for this year. The company reported contracted sales of CNY29.12 billion (US$4.18 billion) in the first eleven months of the year, Reuters discloses. 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. ===================== N E W Z E A L A N D ===================== AIRPORT NINE: Creditors' Proofs of Debt Due on Feb. 15 ------------------------------------------------------ Creditors of Airport Nine Limited are required to file their proofs of debt by Feb. 15, 2023, to be included in the company's dividend distribution. The High Court at Auckland appointed Janet Sprosen and Leon Francis Bowker of KPMG as liquidators on Dec. 15. 2022. GOOD SPIRITS: To Sell 9 Bars After Losses Mount During Pandemic --------------------------------------------------------------- Tina Morrison at Stuff.co.nz reports that the unprofitable Good Spirits Hospitality group is selling its nine bars after trading was hard hit during the Covid-19 pandemic. Stuff relates that the NZX-listed company said in a statement on Dec. 21 that it is seeking non-binding indicative bids for all its venues by February 24 next year. Eight bars are in Auckland and one in Hamilton. The group's bars include The Fox, Botany Commons, Danny Doolan's, Union Post, Cock & Bull, Citizen Park and The Cav. O'Hagan's pub in Auckland's Viaduct Harbour closed after the lease expired on Dec. 19, it said. According to Stuff, the hospitality group has posted losses for the last three financial years as lockdowns and border closures hurt trading. An earlier plan to merge with Nourish Group, which would have given it better economies of scale and seen it expand to other centres, fell through in April, Stuff recalls. Last month, chairperson Matt Adams told the company's annual meeting the group had struggled to stay afloat and was starting to come under pressure to improve its financial position from its funder Pacific Dawn. On Dec. 21, the company said that following a strategic review by Tonnant Partners, the group's board had decided to pursue a sale of its assets, Stuff reports. According to the report, the group said its operating venues were emerging from Covid "with strong momentum". Operating revenue from the nine venues being sold was NZD10.7 million in the first five months of this financial year to November 30, with all venues trading profitably despite reduced opening hours because of labour shortages, it said. Stuff relates that the company forecast a significantly improved result this financial year to June 30, 2023, despite its venues still being constrained by Covid-related headwinds, it said. It expected operating revenue of NZD25.5 million from the nine venues in the 12 months to the end of June 2023, it said. The company reported a loss of NZD6.6 million last financial year as operating revenue slid 25% to NZD17.7 million, Stuff discloses. Good Spirits Hospitality Limited operates as an investment company. The Company offers sustainable cash flows, organic growth, and acquisition services. Good Spirits Hospitality serves customers in New Zealand. LQNZ1 (EFGNZ): Creditors' Proofs of Debt Due on Jan. 27 ------------------------------------------------------- Creditors of Lqnz1 (EFGNZ) Limited ((formerly Emerald Foods Group (Nz) Limited) and Lqnz3 (NZNIP) Limited (formerly NZN IP (NZ) LIMITED) are required to file their proofs of debt by Jan. 27, 2023, to be included in the company's dividend distribution. The companies commenced wind-up proceedings on Dec. 9, 2022. The company's liquidators are: Andrew Grenfell Kare Johnstone McGrathNicol Level 17, 41 Shortland Street Auckland 1010 SHARKYS ENGINEERING: Court to Hear Wind-Up Petition on Feb. 9 ------------------------------------------------------------- A petition to wind up the operations of Sharkys Engineering Limited will be heard before the High Court at Palmerston North on Feb. 9, 2023, at 10:00 a.m. Transport Hydraulic Solutions NZ Limited filed the petition against the company on Nov. 10, 2022. The Petitioner's solicitor is: Don MacRae Morgan Coakle, Solicitors Level 9, 41 Shortland Street Auckland UCCAL S: Creditors' Proofs of Debt Due on Jan. 19 ------------------------------------------------- Creditors of UCCAL (S) Pte. Ltd. are required to file their proofs of debt by Jan. 19, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Dec. 19, 2022. The company's liquidator is: Goh Eng Koon 12 Tannery Road #10-01, HB Centre 1 Singapore 347722 ULTIMATE CONTRACTING: Court to Hear Wind-Up Petition on Feb. 10 --------------------------------------------------------------- A petition to wind up the operations of Ultimate Contracting Limited will be heard before the High Court at Auckland on Feb. 10, 2023, at 10:45 a.m. Commissioner of Inland Revenue filed the petition against the company on Aug. 16, 2022. The Petitioner's solicitor is: Cloete Van Der Merwe Inland Revenue, Legal Services 5 Osterley Way Manukau City Auckland 2104 WESTMINSTER GROUP: Creditors' Proofs of Debt Due on Feb. 9 ---------------------------------------------------------- Creditors of Westminster Group Limited and B D S Property Consultants Limited are required to file their proofs of debt by Feb. 9, 2023, to be included in the company's dividend distribution. The High Court at Auckland appointed Janet Sprosen and Leon Francis Bowker of KPMG as liquidators on Dec. 9, 2022. ================= S I N G A P O R E ================= GCAP PROPERTIES: Members' Final Meeting Set for Jan. 25 ------------------------------------------------------- Members of GCAP Properties Pte. Ltd. will hold their final general meeting on Jan. 25, 2023, at 11:00 a.m., at 2 Balestier Road, #03-669, Balestier Hill Shopping Centre, in Singapore. At the meeting, Tan Ching Siew and Tan Jin Jay, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. IBC CAPITAL: S&P Affirms 'B-' ICR & Alters Outlook to Stable ------------------------------------------------------------ S&P Global Ratings, on Dec. 20, 2022, revised its rating outlook on IBC Capital Ltd. (Goodpack) to stable from negative. S&P affirmed its 'B-' long-term issuer credit rating on Goodpack to reflect the company's high leverage and weak free operating cash flow. S&P withdrew its ratings on Goodpack's first- and second-lien term loans following the company's full repayment of the loans using the refinancing proceeds. The stable outlook reflects S&P's expectation that Goodpack will continue to expand its business, manage the challenging macroeconomic conditions, and maintain sufficient liquidity over the next 12 months. Goodpack's liquidity and debt maturity profile will improve significantly following the refinancing exercise. S&P said, "We expect the refinancing to lengthen the company's weighted debt maturity profile to just over five years from under one year as of Dec. 31, 2022. This will boost Goodpack's liquidity position. We estimate that the company's liquidity sources will now cover its uses by over 3x through to Dec. 31, 2023, compared with a shortfall previously." Goodpack has fully repaid all its outstanding debt using proceeds from a newly issued senior term loan of US$640 million and a mezzanine debt of US$270 million. The company will also have US$150 million in newly refinanced revolving credit facility (RCF) available for standby purposes. Goodpack will use the excess proceeds from the refinancing to service the transaction fees. S&P siad, "We affirmed the rating at 'B-' because we believe Goodpack's leverage will remain high over the next 12 months. We estimate that the company's total debt will rise by more than 10%, largely attributable to the upsizing of the capital structure under the refinancing exercise." As such, Goodpack's adjusted debt-to-EBITDA ratio (excluding subordinated loan) will be 7.5x-8.0x over fiscal 2023 (ending June 30, 2023) and fiscal 2024. Including the subordinated loan, the adjusted ratio of debt to EBITDA would amount to 8.5x-9.5x over the period. The 2.5-year amortization holiday on the senior term loan could also limit the reduction in gross debt over this period. The mezzanine debt has a maturity of six years, with an option to convert to equity if certain conditions are met. It will be subordinated to the existing debt structure and the payment-in-kind interest feature will allow Goodpack to conserve cash. However, S&P views it as debt-like, given third-party investors have provided the instrument but have no ownership control over Goodpack. As such, it includes the mezzanine facility in our debt calculations. S&P said, "The affirmation also reflects our view that receding global demand and Goodpack's elevated capital outlay will reduce prospects of material deleveraging over the next 12 months. High energy costs and recessionary risks will continue to weigh on the company's business prospects. This is especially given Goodpack's large exposure to the cyclical automotive industry. Weak consumer sentiment arising from recessionary concerns will continue to limit Goodpack's revenue growth prospects, even though freight rates have eased since the peaks in 2021 and the company has managed to mitigate rising costs by implementing contract surcharges with its customers in the past year. "Furthermore, we expect rising interest rates to reduce Goodpack's cash flow. This is especially since at least 70% of its debt are exposed to floating rates. We understand that the company is currently exploring interest rate swap instruments to hedge its interest rate risks. "We estimate that Goodpack will incur negative free operating cash flow through fiscal 2023. This is largely because the company has approximately US$130 million in cash capital expenditure, largely for its past container purchases. With insufficient free operating cash flow and additional containers purchase in the pipeline, we anticipate Goodpack will very soon be drawing down on its newly refinanced RCF to fund its spending. "The stable outlook reflects our expectation that Goodpack will continue to grow its business, manage the challenging macroeconomic conditions, and maintain sufficient liquidity over the next 12 months. "We could lower our rating on Goodpack if the company's operating performance weakens significantly with no signs of recovery, or if capital spending is materially higher than our expectations, resulting in weaker cash flows or heightened liquidity pressure. "We would also lower the rating if Goodpack faces mounting refinancing risks, such that we view the company's capital structure to be unsustainable. "We view an upgrade to be unlikely over the next 12 months. However, we may raise the rating if Goodpack's business prospects materially recover, or the company reduces capital spending, such that the adjusted debt-to-EBITDA ratio, excluding the subordinated notes, remains below 7.5x and EBITDA interest coverage stays above 2x. Any upgrade would also be contingent upon a credible funding plan for the subordinated notes at the holding company." ESG credit indicators: E-2, S-2, G-3 KITCHEN CULTURE: 'Intends Vehemently to Resist' Ooway's Legal Suit ------------------------------------------------------------------ The Business Times reports that Ooway Group has commenced legal proceedings against Kitchen Culture to instate the validity of its Nov. 25 extraordinary general meeting (EGM), along with resolutions passed at the said meeting. In a bourse filing on Dec. 20, Kitchen Culture said it was informed on Dec. 16 that Ooway is applying to the Singapore High Court for declarations that five of the company's current directors were validly removed from their posts with effect from Nov. 25, and that Ooway's five appointed directors were validly elected in their place, BT relates. According to the report, Ooway also applied to the court for consequential directions regarding the lodgement of necessary documents with the Accounting and Corporate Regulatory Authority to give effect to these changes to Kitchen Culture's board of directors. As part of the proceedings, Ooway has further filed a summons for injunction against Kitchen Culture to "take the necessary steps" to elect its appointed directors with effect from Nov. 25 - while either removing Kitchen Culture's five current directors with immediate effect or, alternatively, restrain them from exercising any powers, authority or functions as directors of the company. The hearing for the summons has been fixed for 10:00 a.m. on Dec. 23. Additionally, Ooway is applying for costs of the proceedings (including the summons) to be provided for, along with "further or other relief as the court deems fit," BT relays. BT relates that Kitchen Culture said it is instructing lawyers to advise and act in relation to this matter, emphasising that it "intends vehemently to resist the proceedings" including the summons, as well as to present and submit its case to the court. BT meanwhile reports that the company said it will "carry on its business and affairs normally." The current Kitchen Culture directors that Ooway is seeking to remove from the company's board are executive director and former chief executive Lim Wee Li, non-executive and non-independent chairman Lau Kay Heng, and independent directors Ang Lian Kiat, William Teo and Peter Lim, BT discloses. In their place, Ooway is looking to appoint Mr. James Rogers as non-executive director; Mr. Yip Kean Mun as executive director; and Mr. Lam Kwong Fai, Mr. Tan Meng Shern and Mr. Cheung Wai Man as independent directors of the company. Ooway claims these directors were elected at the Nov. 25 EGM after shareholders representing about 40 per cent of Kitchen Culture's shares approved their appointments, BT notes. On the other hand, Kitchen Culture maintains that its current board of directors remains unchanged as it denies the validity of the EGM. Shares of Kitchen Culture have been suspended from trading since July 2021, BT adds. About Kitchen Culture Based in Singapore, Kitchen Culture Holdings Ltd. -- https://www.khlmktg.com/ -- sells and distributes imported kitchen systems, kitchen appliances, wardrobe systems, and household furniture and accessories under the Kitchen Culture brand name. It operates through Residential Projects, and Distribution and Retail segments. Kitchen Culture reported three consecutive net losses of SGD3.87 million, SGD4.77 million and SGD11.51 million for years ended June 30, 2019, 2020, and 2021, respectively. SUNEDISON PRODUCTS: Final Meeting Set for January 20 ---------------------------------------------------- Members and creditors of Sunedison Products Singapore Pte. Ltd. will hold their final meeting on Jan. 20, 2023, at 10:00 a.m., via video conference via Zoom. At the meeting, Leow Quek Shiong, Gary Loh Weng Fatt, and Seah Roh Lin, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. WIRECARD SG: Final Meeting Set for Jan. 19 ------------------------------------------ Members and creditors of Wirecard Sg Payment Solutions Pte. Ltd. will hold their final meeting on Jan. 19, 2023, at 10:00 a.m., at. At the meeting, Yit Chee Wah, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ===================== S O U T H K O R E A ===================== SOUTH KOREA: Concerns Mount on Bankruptcy of Profit-making Firms ---------------------------------------------------------------- BusinessKorea reports that the Korea Chamber of Commerce and Industry recently analyzed 674 non-large listed manufacturers and announced on Dec. 19 that their operating profit increased 3.9 percent from September last year to the same month of this year. "In that period, their interest cost jumped 20.3 percent and total liabilities increased 10.4 percent with inventory assets continuing to increase," it said, adding, "In other words, they are in the black but under huge pressure due to snowballing debts and interest costs." The South Korean government implemented programs in April 2020 for loan maturity extension and deferred repayment of principal and interest, BusinessKorea recalls. The programs for non-large companies and small business operators have been extended four times and are scheduled to end in September next year. Their concerns are increasing with interest rates rising and a recession looming large. "South Korean companies' financial conditions are likely to keep getting worse in the first half of next year," the chamber said, adding, "This is because the Bank of Korea raised the key rate a lot in the second half of this year and it takes six to 12 months for the adjustment to affect the real economy," BusinessKorea relays. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2022. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. *** End of Transmission ***