/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/230109.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, January 9, 2023, Vol. 26, No. 7 Headlines A U S T R A L I A DIGITAL SURGE: Australians Stung for Millions in Crypto Crash HUNTS EXPRESS: Commences Wind-Up Proceedings LAURUS GROUP: Second Creditors' Meeting Set for Jan. 16 MURPHY MCCARTHY: Simon Thorn Appointed as Administrators SKYHIGH SCAFFOLDING: Commences Wind-Up Proceedings TUXEDO MONEY: Commences Wind-Up Proceedings C H I N A FOSUN INT'L: To Sell Stakes in Four Companies for US$975 Million SICHUAN AIRLINES: Wuliangye Invests USD730 Million in Group TIANFU COLA: Cola-Flavor Drinks Maker Denies Bankruptcy H O N G K O N G NEXT DIGITAL: To Be Delisted From HK Stock Exchange on Jan. 12 I N D I A ADILABAD EXPRESSWAY: CARE Reaffirms D Rating on INR160.43cr Loan ANANTHA AGENCYS: CARE Keeps B- Debt Rating in Not Cooperating ARJAN DASS: CARE Keeps B Debt Ratings in Not Cooperating Category BHAGAT MOTORS: CARE Lowers Rating on INR43.41cr LT Loan to B E VAIDYA: CARE Keeps B- Debt Rating in Not Cooperating Category HEALTHFORE TECHNOLOGIES: CARE Keeps D Ratings in Not Cooperating HIRANYAKESHI SAHAKARI: CARE Reaffirms D Rating on INR60cr Loan JUNEJA SONS: CARE Keeps B- Debt Rating in Not Cooperating KARLA CONSTRUCTIONS: CARE Keeps C Debt Rating in Not Cooperating LANSH ENGINEERING: CARE Keeps B- Debt Rating in Not Cooperating LUMENS AIRCON: CARE Keeps B+ Debt Rating in Not Cooperating OK FOOD: CARE Lowers Rating on INR36.75cr LT Loan to B+ PARAMOUNT IMPEX: CARE Keeps C Debt Rating in Not Cooperating PARI AGRI: CARE Keeps B- Debt Rating in Not Cooperating Category PRATIBHA INDUSTRIES: NCLT Told Liquidator to Conduct Fresh Auction PRINT-TECH OFFSET: CARE Keeps B Debt Ratings in Not Cooperating S. N. HOTELS: CARE Lowers Rating on INR5.59cr LT Loan to B- SANJAY GRAIN: CARE Lowers Rating on INR32.56cr LT Loan to B+ SRG ALUMINIUM: CARE Keeps B Debt Rating in Not Cooperating SRINIVASA STEEL: CARE Keeps D Debt Rating in Not Cooperating SULSON OVERSEAS: CARE Keeps B Debt Rating in Not Cooperating TAJSHREE CARS: CARE Keeps D Debt Rating in Not Cooperating I N D O N E S I A LIPPO KARAWACI: Moody's Affirms B3 CFR & Alters Outlook to Stable M A C A U MELCO RESORTS: S&P Affirms 'BB-' LongTerm ICR, Outlook Negative M A L A Y S I A EA TECHNIQUE: Court Sanctions Scheme of Arrangement With Creditors S I N G A P O R E AHOMESTORY INTERIOR: Court to Hear Wind-Up Petition on Jan. 20 BLUE BUCKS: Creditors' Proofs of Debt Due on Feb. 5 GRASS ROOTS: Creditors' Proofs of Debt Due on Feb. 5 LUXURIOUS ENGINEERING: Court to Hear Wind-Up Petition on Jan. 20 MOLA SUBSEA: Court to Hear Wind-Up Petition on Jan. 20 SUBSTANTIA PRIVATE: Creditors' Proofs of Debt Due on Feb. 5 - - - - - ================= A U S T R A L I A ================= DIGITAL SURGE: Australians Stung for Millions in Crypto Crash ------------------------------------------------------------- Marion Rae at The Sydney Morning Herald reports that tens of thousands of Australians stung by the latest cryptocurrency exchange collapse could be waiting years to get their money back, if at all. Almost AUD30 million in digital assets they thought was safely held in crypto wallets with Brisbane-based Digital Surge is caught up in the bankruptcy of global crypto exchange FTX, according to SMH. SMH says Digital Surge had deep trading links with FTX and froze accounts in November to stave off its own bankruptcy before going into voluntary administration in December. Trading remains suspended for the 62,000 user accounts but a bailout could be in the works with bids due by Monday [Jan. 9]. According to the report, administrators have set themselves a two-week deadline to issue a report to explain the pros and cons of a possible rescue and restructure versus liquidation and distribution of remaining assets. SMH relates that David Johnstone of KordaMentha told the first creditors meeting a vote on the future of Digital Surge would take place on Jan. 24. He said the company didn't appear to have any operational issues until the end of 2022, when it was caught up in the FTX collapse. According to administrators, the company had AUD64.6 million in assets under management when it went into voluntary administration last month, including AUD28.6 million on the FTX exchange - mostly in the largest and most well-known cryptocurrencies Bitcoin and Ethereum, SMH relays. Under administration, the cryptocurrencies on the digital books are considered company assets - not that of individuals - which makes account holders unsecured creditors. However, Mr. Johnstone said they have made a claim on behalf of Digital Surge to the lead bankruptcy lawyers handling FTX proceedings in the United States for the full amount. "There is no indication that Digital Surge customer money was used or invested," Mr. Johnstone told the online meeting on Jan. 5. But he warned creditors it was going to take "months but more likely years" for the FTX proceedings to come to any conclusion. In the meantime, AUD29.7 million in digital assets has been moved to ZeroCap, which he said was a reputable Australian exchange to use as a custodian and insurance had been obtained for those holdings, SMH says. Administrators also control AUD4.5 million in cash, but no digital assets have been converted to cash, the report adds. Digital Surge was founded in 2017 and offered access to more than 300 cryptocurrencies through its technology platform. The private firm is owned by company directors Daniel Ritter (38.8 per cent) and Joshua Lehman (48.5 per cent), and two other shareholders Jozef Knaperek (9.7 per cent) and QUT Bluebox Pty Ltd (3 per cent), administrators said. The next FTX Australia creditors' meeting has been delayed for months as experts sift through the digital money trail - in Australia and abroad, according to SMH. Administrators KordaMentha are also in charge of the FTX Australia collapse, SMH notes. Regulators remain concerned Australians mistakenly think they have the same protections when dabbling in crypto as when buying shares online. Digital Surge did not hold an Australian Financial Services Licence and was not required to have one by law, the report notes. David Johnstone, Scott Langdon and John Mouawad of KordaMentha were appointed as administrators of the company on Dec. 8, 2022. HUNTS EXPRESS: Commences Wind-Up Proceedings -------------------------------------------- Members of Hunts Express Transport Pty Ltd on Jan. 5, 2023, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Gavin Charles Moarton Morton + Lee Insolvency Level 10, 388 Queen Street Brisbane, QLD 4000 LAURUS GROUP: Second Creditors' Meeting Set for Jan. 16 ------------------------------------------------------- A second meeting of creditors in the proceedings of Laurus Group Pty Ltd has been set for Jan. 16, 2023 at 11:00 a.m. The meeting will be conducted by online video conference using Zoom Meetings. 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 Jan. 12, 2023 at 5:00 p.m. Sam Kaso of Cor Cordis was appointed as administrator of the company on Nov. 30, 2022. MURPHY MCCARTHY: Simon Thorn Appointed as Administrators -------------------------------------------------------- Simon Thorn of PKF on Jan. 6, 2023, was appointed as administrators of Murphy, McCarthy & Associates Pty. Limited, trading as "MMA Civil Contractors". The administrator may be reached at: Simon Thorn PKF 755 Hunter Street Newcastle West, NSW 2302 SKYHIGH SCAFFOLDING: Commences Wind-Up Proceedings -------------------------------------------------- Members of Skyhigh Scaffolding (NSW) Pty Limited on Jan. 5, 2023, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Mohammad Najjar Vanguard Insolvency Australia Pty Ltd Level 17 9 Castlereagh Street Sydney, NSW 2000 TUXEDO MONEY: Commences Wind-Up Proceedings ------------------------------------------- Members of Tuxedo Money Solutions Pty. Ltd. and Tuxedo Money Pty. Ltd. on Dec. 23, 2022, passed a resolution to voluntarily wind up the operations of the companies. Terry Grant Van der Velde of SV Partners has been appointed as the liquidator. ========= C H I N A ========= FOSUN INT'L: To Sell Stakes in Four Companies for US$975 Million ---------------------------------------------------------------- South China Morning Post reports that Fosun International has agreed to sell its stakes in four companies for a combined CNY6.7 billion (US$975 million) in the latest series of asset sales by the owner of the Club Med chain of resorts. The Post relates that the Shanghai-based conglomerate said it would sell a 25.7 per cent interest in Tianjin Jianlong Iron & Steel Industrial and 26.7 per cent stakes in Beijing Northern Jianlong Industrial, Jianlong Steel and Janeboat Holdings. Heavily indebted Fosun said it would use the proceeds from the sales to bolster its general working capital. "The disposals will enable the group to focus more resources on key development strategies and key projects and contribute to the long-term success of the group," the company said in a Hong Kong stock exchange filing on Jan. 5, the Post relays. "It also demonstrates the group's continuous efforts and focus on enhancing its overall competitiveness and creating maximum value for its shareholders." Fosun raised almost US$100 million last year through the sale of assets as it has faced ongoing concerns over its financial strength, the Post recalls. Among its sales included holdings in Shanghai-listed retailer Shanghai Yuyuan Tourist Mart, New China Life Insurance, Shanghai-listed Nanjing Iron & Steel and Zhaojin Mining Industry. The company is reportedly considering strategic options for its Club Med resorts and a potential sale of its stake in Indian drug maker Gland. About Fosun International Fosun International Limited provides diversified services. The Company offers products and services for families in health, happiness, and wealth businesses. Fosun International serves clients worldwide. As recently reported in the Troubled Company Reporter-Asia Pacific, Moody's Investors Service has downgraded to B2 from B1 the corporate family rating of Fosun International Limited. At the same time, Moody's has also downgraded to B2 from B1 the senior unsecured bonds issued by Fortune Star (BVI) Limited and unconditionally and irrevocably guaranteed by Fosun. Moody's has changed the outlook on all ratings to negative from ratings under review. This concludes the review for downgrade initiated on September 30, 2022. "The downgrade reflects Fosun's weak liquidity, recent fast and significant decline of the market value of its listed assets which erodes its funding headroom, and the execution risk related to the company's fundraising plans amid capital market volatility and prevalent risk averse sentiment. Moody's are also concerned that accelerated divestments or pledge of good quality assets will lead to a faster-than-expected weakening of Fosun's portfolio size and quality, as well as its financial flexibility, which no longer supports its previous B1 rating," says Lina Choi, a Moody's Senior Vice President. The negative outlook reflects the refinancing uncertainties and execution risks of asset sales to repay Fosun's sizable debt maturing over the next 12 months, and the company's ongoing challenges in balancing liquidity needs and maintaining its investment portfolio quality. SICHUAN AIRLINES: Wuliangye Invests USD730 Million in Group ----------------------------------------------------------- Yicai Global reports that Yibin Wuliangye Group has invested CNY5 billion (USD729.7 million) in Sichuan Airlines Group to help the parent company of Sichuan Airlines recover from losses suffered due to the impact of Covid-19 in recent years. Sichuan Airlines Group and Wuliangye, two state-owned companies based in southwestern China's Sichuan province, reached the agreement last month, a person familiar with the matter told Yicai Global. The proceeds of the investment will be used to increase the capital of Sichuan Airlines, Yicai Global learned from the source, who added that other shareholders will also follow in investing in the carrier to further raise its capital. Sichuan Airlines Group is the carrier's No. 1 shareholder with a 40 percent stake, followed by China Southern Airlines, China Eastern Airlines, and Shandong Airlines with stakes of 39 percent, 10 percent, and 10 percent, respectively. Sichuan Airlines reported losses of CNY2.5 billion and CNY1.8 billion in 2020 and 2021, Yicai Global discloses the carrier's previous financial results. The Chinese civil aviation industry accumulated over CNY300 billion (USD43.8 billion) of losses since the beginning of the Covid-19 pandemic, according to data released by the Civil Aviation Administration of China in July 2022, Yicai Global relays. The authority under the Ministry of Transport announced back then that it issued CNY3 billion of relief funds to each Air China, China Eastern, and China Southern, the country's largest carriers. Wuliangye and Sichuan Airlines Group joined hands for the first time in 2018 when they set up Sichuan General Aviation Investment Management. The former holds a 35 percent stake in the joint venture, while the latter a 65 percent stake. Moreover, Wuliangye became the title sponsor of the new airport built in the city of Yibin in 2019. Sichuan Airlines Group Co. Ltd., provides airline services. The Company offers import & export services, aircraft leasing, air equipments and aircraft maintenance, and more. Sichuan Airlines Group serves customers and clients internationally. TIANFU COLA: Cola-Flavor Drinks Maker Denies Bankruptcy ------------------------------------------------------- Yicai Global reports that Chinese cola-flavor beverage brand Tianfu Cola has denied that it has filed for bankruptcy, after demand for its drinks skyrocketed amid alarm over the company's rumored demise. According to Yicai Global, Tianfu Cola said in a press release posted on Weibo on Jan. 4 that the entity that is applying for bankruptcy is a previous iteration of the firm called China Tianfu Cola Group Corporation Chongqing, which ceased operating in 2018. Yicai Global says Jiang Lin, chairman of the brand's current maker Tianfu Kele Chongqing Beverage, was in the firm's livestream studio on Jan. 5 promoting its products as normal. Jiang called on consumers not to stockpile the products in an irrational manner after sales of the drinks on e-commerce platform Tmall soared 1,700 percent as the bankruptcy rumors swirled online, the report relates. The now-defunct China Tianfu Cola Group Corporation Chongqing was incorporated in 1988 with registered capital of CNY12.5 million (USD1.8 million), Yicai Global discloses citing data from business information platform Tianyancha. Tianfu Cola was the first domestic cola-flavor beverage, and it became popular after being used at state banquets. The beverage was less sweet and fizzy than US brands such as Pepsi and had Chinese herbal ingredients and a relatively milder taste. It once had a 75 percent share of the Chinese cola drinks market. Tianfu Cola's then operator set up a joint venture with Pepsi in 1994, but the JV's performance was poor, the report recalls. Legal battles followed, and in 2010 Tianfu Cola took Pepsi to court for stealing its recipe for the beverage. The company successively retrieved its trademark and other assets in 2013. In 2018, China Tianfu Cola Group Corporation Chongqing's shareholder Chongqing Textile Holding Group transferred the group's related assets to Tianfu Kele Chongqing Beverage, which was set up that year and now owns Tianfu Cola's trademark, Yicai Global learned. But the company's struggles have continued, and it posted a loss of CNY18.3 million in 2021 on revenue of CNY16.5 million, Yicai Global discloses citing a notice on the Chongqing Assets and Equity Exchange. ================= H O N G K O N G ================= NEXT DIGITAL: To Be Delisted From HK Stock Exchange on Jan. 12 -------------------------------------------------------------- South China Morning Post reports that Next Digital, the media company founded by jailed tycoon Jimmy Lai Chee-ying, will be delisted from the Hong Kong stock exchange on January 12, a year and a half after the closure of its flagship newspaper Apple Daily. The listing committee of the stock exchange decided last month to cancel the listing status of the company while the firm, which is now in the process of liquidation, has no intention to appeal the decision, the Post relates citing filing to the exchange released on Jan. 4. As such, Next Digital's last day as a listed company will be on January 11 with its shares cancelled from 9:00 a.m. the following day. According to the report, Next Digital has been a key target of authorities in the wake of the adoption of the national security law in June 2020. Police arrested Lai a month after the law kicked in and raided the company's offices in Tseung Kwan O. Apple Daily, known for its support of the 2019 anti-government protests and its backing of the opposition camp in Hong Kong, published its final edition on June 24, 2021. Authorities have also frozen HK$18 million (US$2.3 million) of Next Digital's assets. Shares of Next Digital have been halted from trading since June 17, 2021, the Post notes. Two months later, Financial Secretary Paul Chan Mo-po filed a petition to the Court of First Instance to liquidate the 40-year-old firm, a week after his appointed special inspector submitted his interim findings. Chan had appointed the managing director of the accounting firm BDO, Clement Chan Kam-wing, to look into allegations of illegal activities at Next Digital. Under Hong Kong stock exchange rules, the listing committee will scrap the listed status of a company if it has been suspended from trading for 18 months and cannot prove that it has the ability to meet the criteria to resume trading. Apple Daily, a tabloid-style newspaper with print and digital channels, accounted for around 82 per cent of the company's revenue. The group's only other source of revenue was a daily newspaper in Taiwan, according to an interim report in 2021. According to the Post, Lai was recently sentenced to five years and nine months in jail and fined HK$2 million (US$256,850) for breaching land lease terms in the offices of his now-defunct Apple Daily newspaper in Tseung Kwan O Industrial Estate. Hong Kong authorities are trying to block Lai from appointing a British lawyer in his national security trial set to take place in September, the report notes. The share price of Next Digital last traded at 29 HK cents. The price had fluctuated wildly in the 10 months leading to the closure of Apple Daily. The stock briefly rallied in August 2020 from 75 HK cents to HK$1.96 in a single day. The sudden surge had come after Lai was arrested for alleged "collusion with foreign forces". Lai first took over the company in late 1999 through a back-door listing, when it was known as Paramount Publishing Group. Paramount was renamed Next Media, before becoming Next Digital in 2015. Next Digital Limited was a Hong Kong-based investment holding company principally engaged in media and publishing businesses. The Company operated through three segments. Digital segment was engaged in Internet advertising, Internet subscription, content provision and the development of mobile games and applications in Hong Kong, Taiwan and America. Newspapers Publication and Printing segment was engaged in the sales of newspapers and the provision of related newspapers printing and advertising services in Hong Kong and Taiwan. Books and Magazines Publication and Printing segment was engaged in the sales of books and magazines, as well as the provision of books and magazines printing and advertising services in Hong Kong, Taiwan, North America, Europe and Oceania. ========= I N D I A ========= ADILABAD EXPRESSWAY: CARE Reaffirms D Rating on INR160.43cr Loan ---------------------------------------------------------------- CARE Ratings has reaffirmed ratings on certain bank facilities of Adilabad Expressway Private Limited (AEPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 160.43 CARE D Reaffirmed Detailed rationale and key rating drivers The rating assigned to the bank facilities of AEPL continues to factor delays in servicing of the debt obligation owing to stretched liquidity position of the company. Rating sensitivities Positive factors – Factors that could lead to positive rating action/upgrade: Ability of the company to meet the curing period guidelines as stipulated by SEBI Detailed description of the key rating drivers Key rating weaknesses * Delay in Debt Servicing: Tightly matched annuity amounts received from NHAI towards debt servicing obligations compounded with significant amount of deduction in 17th annuity by NHAI during May 2018 on account of delay in completing its first major maintenance which was due in FY2016, resulted in severe cashflow mismatch leading to strain in liquidity and delay in debt servicing obligations. Liquidity: Poor Liquidity of the company is poor. The company has been making defaults in the interest payments and it has been classified as NPA with lenders. Adilabad Expressway Private Limited (AEPL) is a special purpose vehicle (SPV) promoted by Soma Enterprise Limited (5.59%) along with its road holding company Soma Tollways Private Limited (94.40%), to design, construct, operate, and maintain a road stretch of 55 km of four lane on NH—7 in Telangana on an Annuity basis. The concession period for the project is 20 years including 2 years of construction period. The project commenced operations on June 24, 2010 against the scheduled project completion date of November 2, 2009. The company received provisional completion certificate, however due to delay in achieving the commercial operations, the increase in project cost was funded through short term loan of INR24 crore and balance was brough in by the promoters. As per CA with NHAI, AEPL is eligible to receive semi-annual annuity of INR31.48 crore from NHAI from 180 days from the occurrence of COD. The company has received 26 annuity installments till November 2, 2022. ANANTHA AGENCYS: CARE Keeps B- Debt Rating in Not Cooperating ------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Anantha Agencys Private Limited (AAPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 15.00 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated October 21, 2021, placed the rating(s) of AAPL under the 'issuer non-cooperating' category as AAPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. AAPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 6, 2022, September 16, 2022, September 26, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Anantha Agency's Private Limited (AAPL) was incorporated in 2013 and promoted by Mr Ravi Anantha and his wife Mrs. Indrani Anantha. The company has taken up dealership of e-rickshaw (battery powered) from M/s Saera Electric Auto Pvt Ltd (SEPL, a New Delhi based company engaged in manufacturing battery operated tricycles popularly termed as "ERickshaws"). The company is setting up office building and warehouse to start the trading of e-rickshaw across southern India. The total cost proposed to set up the facility is INR1.20 crore funded by bank term loan of INR1.00 crore with equity share capital of INR0.10 crore and unsecure loan of INR0.10. Furthermore, the company has proposed working capital facility of INR14.00 crore to manage day to day operations. The company is planning to deal with passengers as well as in cargo loading e-rickshaw segments under brand name of 'Mayuri E-rickshaw' and 'Cheeta E-Ricksaw' of SEPL. The on-road price for e-rickshaw ranges between INR85, 000 to INR1, 30,000. ARJAN DASS: CARE Keeps B Debt Ratings in Not Cooperating Category ----------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Arjan Dass And Sons Private Limited (ADSPL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.00 CARE B; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Long Term/Short 3.00 CARE B; Stable/CARE A4; Term Bank ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated October 22, 2021, placed the rating(s) of ADSPL under the 'issuer non-cooperating' category as ADSPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. ADSPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 7, 2022, September 17, 2022, September 27, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Arjan Dass And Sons Private Limited (ADSPL) was initially constituted as a partnership firm in 1957, by the Agarwal family based out of Howrah, West Bengal. However, it was converted into private limited company on January 05, 2007 with its current name. Since its inception, the company has been engaged in manufacturing of steel ingots, rounds, squares, flats etc. The manufacturing facility for ingots of the company is located at Borjora (West Bengal) with an installed capacity of 18,000 tons per annum (TPA) and the rolling mill is located at Howrah, West Bengal with an installed capacity of 18,000 tons per annum. BHAGAT MOTORS: CARE Lowers Rating on INR43.41cr LT Loan to B ------------------------------------------------------------ CARE Ratings has revised the ratings on certain bank facilities of Shree Bhagat Motors Limited (SBML), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 43.41 CARE B; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE BB-; Stable and moved to ISSUER NOT COOPERATING category Detailed rationale and key rating drivers CARE Ratings Ltd. has been seeking information from SBML to monitor the rating(s) vide e-mail communications dated July 12, 2022, and December 7, 2022, among others and numerous phone calls. However, despite repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Further, SBML has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The rating on SBML's bank facilities will now be denoted as CARE B; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings have been revised on account of deterioration in financial performance, dependency on fortunes of principal with low bargaining power, cyclical nature of auto industry, high exposure to group company, weak capital structure and debt protection metrics. However, the rating draws strength from experienced promoters with long track record of operations, diversified product portfolio with multiple dealerships and wide distribution network in Orissa and long-established relationship with OEMs. Detailed description of the key rating drivers At the time of last rating on October 13, 2021, the following were the rating strengths and weaknesses (updated for the information received from Registrar of companies) Key rating weaknesses * Deterioration in total operating income in FY22: The total operating income of SBML registered a y-o-y decline of ~40.39% to INR83.29 crore in FY22. Further, the PBILDT margin has also moderated from 5.80% in FY21 to 3.19% in FY22. Also, the interest coverage ratio deteriorated to 0.45x in FY22 (1.24x in FY21). * Dependency on fortunes of principal with low bargaining power: SBML lack bargaining power due to its dependence on large principals that set policies, targets and link incentive-based income to satisfactory compliance of such policies. The company is exposed to the risk of change in policy by the principal with regards to the dealership. Accordingly, the financial risk profile of the company has a high degree of correlation with the performance of OEM's vehicles in the market and their ability to launch new products. Further, any reputational damage to the OEM would impact the topline of dealerships. * Cyclical nature of auto industry: The auto industry is inherently vulnerable to economic cycles and is highly sensitive to the interest rates and fuel prices. A hike in interest rate increases the costs associated with the purchase leading to purchase deferral. Fuel prices have a direct impact on the running costs of the vehicle and any hike in the same would lead to reduced disposable income of the consumers, influencing the purchase decision. The company thus faces significant risks associated with the dynamics of the auto industry. * Weak capital structure and debt protection metrics: The capital structure of the SBML stood weak with debt equity and overall gearing of 1.90x and 3.68x respectively, as on March 31, 2022 (1.90x and 3.86x as on March 31, 2021). * Working capital intensive nature of operations: The operations of SBML are working capital intensive in nature on account of high inventory days. Instances of building up of inventory generally take place during the year end in order to avail various incentives launched by OEMs in order to meet year end targets. In FY22, the company's operating cycle has increased from 92 days in FY21 to 135 days in FY22. The inventory period has also deteriorated to 97 days in FY22 (53 days in FY21). * High Exposure to group company: SBML's exposure to group company remains high. As on March 31, 2021; around 97% of its networth is parked in group company in the form of unsecured loan. Key rating strengths * Experienced Promoters with long track record of operations: Shree Bharat Motors Ltd (SBML) is promoted and managed by Mr. Jay Prakash Didwania who has experience in auto trade and transportation of more than three decades. The promoter is ably supported by a team of experienced professionals. The Bharat group is one of the largest automobile dealers in Odisha with presence in two-wheeler, three-wheeler, four-wheeler and commercial vehicle segments. Another promoter of the group is Mr Om Prakash Didwania. Due to their long-standing experience in automobile dealership business, they have been able to increase their dealership network across Orissa. * Diversified product portfolio with multiple dealerships and wide distribution network in Odisha: With long track record and healthy principal relationships, SBML has created a portfolio of products that suits the requirement of diverse segment users. Their portfolio includes two-wheeler, three-wheeler, passenger vehicles and commercial vehicles. The company currently has dealerships of Triumph motorcycles (2W), Bajaj Auto (3W), Jeep (4W) and Daimler (CV). This apart, the geographical reach of Bharat group is in all major towns of Orissa. * Long established relationship with OEMs: SBML has multiple dealerships and has a long-standing relationship with its principals. SBML has been associated with Bajaj Auto Ltd. (for more than one and half decade), Daimler India Commercial Vehicles (for a decade), Triumph Motorcycles (4 years) and Jeep India (4 years). Shree Bharat Motors Ltd. (SBML) promoted by Mr Jay Prakash Didwania commenced its operations in 1998. The company currently has dealership of Bajaj Auto (3W), Daimler (CV), Triumph motorcycles (2W) and Jeep (4W). SBML has a total of 13 showrooms. E VAIDYA: CARE Keeps B- Debt Rating in Not Cooperating Category --------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of E Vaidya Private Limited (EVPL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.25 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 2.15 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated October 22, 2021, placed the rating(s) of EVPL under the 'issuer non-cooperating' category as EVPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. EVPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 7, 2022, September 17, 2022, September 27, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). E Vaidya Private Limited (EVPL) was incorporated in the year 2011 by Mr. Srinivasa Rao Paturi along with Mr. Venkat Vallabhaneni, Mr. Chaitanya Nalla mothu and Mr. Siddharth Nalla mothu. The company is engaged in providing primary health care solutions through advanced tele- medicine technology. The services provided are like community health check - ups, health promotion, counseling and support etc. HEALTHFORE TECHNOLOGIES: CARE Keeps D Ratings in Not Cooperating ---------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Healthfore Technologies Limited (HTL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 266.67 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 7.10 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated October 7, 2021, placed the ratings of HTL under the 'issuer non-cooperating' category as HTL had failed to provide information for monitoring of the rating as agreed to in its Rating Agreement. HTL continues to be non-cooperative despite repeated requests for submission of information through emails, phone calls and emails dated August 23, 2022, September 2, 2022, September 12, 2022, November 25, 2022 and November 29, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed description of the key rating drivers At the time of last rating on October 7, 2021, the following were the rating weaknesses: Key Rating Weaknesses * Delays in debt servicing: There has been delays in the servicing of the debt obligations by HTL at the time of last rating as per public available information. Liquidity: Poor HTL has poor liquidity position since, there has been delays in the servicing of the debt obligations by the company as per public available information. Healthfore Technologies Limited (HTL; erstwhile Religare Technologies Limited), incorporated in May, 2009 is a global healthcare IT solutions and advisory services company. HTL offers various products and services including product 'Infinity' which is a Hospital Information System and supports patient, clinical, ancillary and financial management, 'Magnum Imaging system' which optimizes clinical workflow by combining Picture Archival and Communication System (PACS), Radiology Information System (RIS) and teleradiology. HTL also provides telehealth services spanning telemedicine, telepathology, teledermatology and teleradiology. RHC (formerly known as, Solaris Finance Private Limited), incorporated in April 2007, is a Non-Banking Financial Company (NBFC) managed and controlled by the family members of Mr. Malvinder Singh and Mr. Shivinder Singh. HIRANYAKESHI SAHAKARI: CARE Reaffirms D Rating on INR60cr Loan -------------------------------------------------------------- CARE Ratings has reaffirmed ratings on certain bank facilities of Shri Hiranyakeshi Sahakari Sakkare Karkhane Niyamit (SHSSKN), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 60.00 CARE B+; Stable Reaffirmed Detailed rationale and key rating drivers The ratings assigned to the bank facilities of SHSSKN factors in its negative net worth due to consistent losses or negligible profits, due to which the operations are predominantly funded with debt. SHSSKN's rating is also constrained by profitability being susceptible to price fluctuation in sugar, cyclical and regulated nature of industry and inherent risk to agro-climatic conditions. These rating weaknesses are partially offset by the favourable location of the sugar plant resulting in relative higher recovery percentage than average industry rate, it long track record of operations and diversified segment of operations. Rating sensitivities Positive factors – Factors that could lead to positive rating action/upgrade: * Increase in total operating income (TOI) by more than INR400 crore with PBILDT margin above 14% on a sustained basis Negative factors – Factors that could lead to negative rating action/downgrade: * Any debt funded capex would adversely affect the repayment capacity and coverage indicators * Any notable decline in TOI or operating profits, going forward. * Any adverse government regulation(s) having a bearing on company's profitability margins Detailed description of the key rating drivers * Negative net worth of company albeit improvement in scale and PAT in FY22: The society has to maintain higher sugar inventory levels due to government restrictions. This led to losses which was predominantly funded with debt leading to increasing interest costs. Due to no equity infusion and negligible profits, net worth of Society has turned negative. However, in the year FY22, the scale of operations of the company has grown by 85.11% in FY22 and stood at around INR410.18 Cr when compared to INR221.58 Cr in FY21, due to liquidation of higher sugar inventory. The PAT margins of the company remained negligible at 0.14% in FY22 which has improved when compared to negative at 14.92% in FY21. Going forward, company expects operations to turn profitable on back of increased sugar production and sales and increased contribution from high margin ethanol plant. * Fluctuating profitability margins: Profitability margins is susceptible to fluctuations due to demand-supply dynamics, cyclical and regulated nature of the industry and higher cane costs. The profitability margins marked by PBILDT margins improved and stood satisfactory at 14.67% in FY22 when compared to 4.44% in FY21 due increase in better sales realisation of sugar when compared to previous year. However, going forward, with the expected higher diversion of ethanol production the sugar inventory levels are expected to decline in the country resulting in lower volatility in the prices. Furthermore, continuation of government's policy in the form of fixing minimum support price (MSP) for sugar and remunerative ethanol prices, would continue to lend support to the industry. * Cyclical and regulated nature of the industry: The industry is cyclical by nature and is vulnerable to the government policies for various factors like its importance in the Wholesale Price Index (WPI), as sugar is classified as an essential commodity. The governments (both Union and State) resort to various regulations such as fixing the raw material (sugarcane) prices in the form of Fair & Remunerative Prices (FRP) and State Advised Prices (SAP). All these factors impact the cultivation patterns of sugarcane in the country and thus affect the profitability of the sugar companies. India also continues to carry high levels of sugar inventory largely due to the controlled release mechanism followed by the Government. * Inherent to Agro-climactic risk: The sugar industry, being directly dependent on the sugarcane crop and its yield, is susceptible to agro climatic risks including pest & diseases. Climatic conditions, more specifically, the monsoons influence various operational parameters for a sugar entity, such as the crushing period and sugar recovery levels. Key rating strengths * Long track record of operations for more than six decades: The society is into operations for more than six decades in the sugar and its by-products. The society is professionally managed by its Board of Directors consists of twelve Directors. Amongst these eleven elected Directors (ten from cane grower member & one from non-grower members) and one is Chief Executive appointed by the Board. * Favourable location of the sugar plant resulting in relative higher recovery percentage than average industry rate: Sugar plant is located at Sankeshwar, Hukkeri Taluk in Belgavi district of Karnataka which shares its borders with Maharashtra state. The sugarcane comes from the farmer member of the society located in and around the sugar plant and the plant is located near major rivers such as Ghataprabha, Markhandeya, Doodhaganga, Krishna, Malaprabha which provides uninterrupted water supply to the plant. The society's recovery rate stood at the range of 10.50-11.00% which is higher than the industry average of 10.03%. The society is expected to maintain the similar level of recovery percentage in the projected years which helps in maintaining the production in the similar levels. * Diversified scale of operations: Apart from 8000 TCD sugar plant the society has diversified its operations into Cogeneration having capacity of 45 MW and distillery unit with capacity of 54 KLPD. In the year FY22, sugar segment alone contributed around 87%. The society is planning into ethanol expansion by increase in their distillery unit capacity to 100 KLPD and which may help in order to improve the profitability of the society as whole Liquidity: Stretched Liquidity is marked by moderate cash accruals against tightly matched repayment obligations. The average working capital limits supported by sugar pledge loan and pre seasonal loan facility where average utilization for past 12 months ending November 2022 is ~85% and ~95% respectively. The current ratio is also below unity from FY18-FY22 Shri Hiranyakeshi Sahakari Sakkare Karkhane Niyamit is a cooperative society, established in 1956 under Multi State Cooperative Societies Act, as it has members both in Karnataka and Maharashtra and started its first trial of crushing in 1961. SHSSKN operates in 233 villages in Karnataka and 77 villages in Maharashtra within a radius of 22 miles. Hiranyakeshi operates sugar mill with crushing capacity of 8,000 TCD, distillery Unit of 54KLPD and cogeneration power plant of 41 MW. Sugar is sold based on tenders received from various brokers. Current capacity to produce ethanol is 54 KLPD which going forward wil be expanded to 100 KLPD. JUNEJA SONS: CARE Keeps B- Debt Rating in Not Cooperating --------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Juneja Sons Steel Processors (JSSP) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 9.00 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated December 3, 2021, placed the rating(s) of JSSP under the 'issuer non-cooperating' category as JSSP had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. JSSP continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated October 19, 2022, October 29, 2022, November 8, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Juneja Sons Steel Processors (JSS) was established in April, 2010 as a proprietorship concern and is currently being managed by Mr. Jagmeet Singh Juneja. JSS is engaged in the processing (mainly cutting) of iron and steel products like H.R. and C.R. coils, sheets, strips, bars, plates, channels, angles etc. at its facility located at Ludhiana, Punjab. KARLA CONSTRUCTIONS: CARE Keeps C Debt Rating in Not Cooperating ---------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Karla Constructions (KC) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.00 CARE C; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 5.00 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated October 28, 2021, placed the rating(s) of KC under the 'issuer non-cooperating' category as KC had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. KC continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 13, 2022, September 23, 2022, October 3, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Karla Constructions (KC), based out of Udupi, Karnataka is a sole proprietorship firm established in 1972. KC is engaged in executing civil construction contracts such as construction of National Highways and roads for government organizations. The firm's operations are managed by its promoter, Mr. Shivaram Shetty. The firm is a class I govt. contractor registered with public works department (PWD). LANSH ENGINEERING: CARE Keeps B- Debt Rating in Not Cooperating --------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Lansh Engineering Private Limited (LEPL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.00 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 4.50 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated October 26, 2021, placed the rating(s) of LEPL under the 'issuer non-cooperating' category as LEPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. LEPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 11, 2022, September 21, 2022, October 1, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Incorporated in 1996, Lansh Engineering Private Limited (LEPL) is an ISO 9001:2008 certified company engaged in designing, fabrication, installation and commissioning of process equipment's for plants (such as heat exchangers, pressure vessels, pressure reducing stations and storage tank) and fired equipment's (like boilers and furnaces) that find application in power, oil & gas, chemicals, engineering and pharmaceutical industries. Moreover, LEPL is also operating into annual maintenance of power & industrial boilers along with inspection and consultancy of Indian Boiler Regulation (IBR)/Non-IBR boiler installations. LUMENS AIRCON: CARE Keeps B+ Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Lumens Aircon Private Limited (LAPL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 3.75 CARE B+; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 3.50 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated October 29, 2021, placed the rating(s) of LAPL under the 'issuer non-cooperating' category as LAPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. LAPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 14, 2022, September 24, 2022, October 4, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Incorporated in 2003, LAPL is engaged in the business of luminaries, lighting fixtures, modular furniture and sheet metal components. LAPL & K.C. Fixtures (KCF) are part of the Lumens Group (also includes Lumens Industries) engaged in the same line of business. The manufacturing facility of LAPL is located at Bangalore. OK FOOD: CARE Lowers Rating on INR36.75cr LT Loan to B+ ------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of OK Food Private Limited (OFPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 36.75 CARE B+; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE BB-; Stable Short Term Bank 0.04 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated October 27, 2021, placed the rating(s) of OFPL under the 'issuer non-cooperating' category as OFPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. OFPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 12, 2022, September 22, 2022, October 2, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings assigned to the bank facilities of OFPL have been revised on account of non-availability of requisite information. The ratings also factored in decline in scale of operations, profitability and deterioration in debt coverage indicators in FY22 over FY21. Jabalpur (Madhya Pradesh) based OK Food Private Limited (OFPL) was formed in 2012 by Mr. Ashok Pariyani, Mr. Kanchedilal Jain, Mr. Shakant Kesharwani, Mr. Rajesh Kumar Gupta and Mr. Ajay Kumar Gupta. However, in 2018, Mr. Rajesh Kumar Gupta and Mr. Ajay Kumar Gupta left the directorship of the company. OFPL is mainly engaged in the processing of Basmati rice (Steamed/parboiled rice). The processing plant of the company has total installed capacity of 8 Ton per hour (TPH) for processing of rice as on March 31, 2020. The processed Basmati rice is sold under the brand name "Ok". PARAMOUNT IMPEX: CARE Keeps C Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the ratings for the bank facilities of Paramount Impex Private Limited (PIPL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 1.76 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Short Term 10.50 CARE A4; ISSUER NOT Bank Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated October 14, 2021, placed the rating(s) of PIPL under the 'issuer non-cooperating' category as PIPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. PIPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated August 30, 2022, September 9, 2022, September 19, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). PIPL was incorporated in 1995 by Mr Sat Bhushan Gupta and Mr Raghu Nandan Sarup. The current management includes Mr Sat Bhushan Gupta, Mr Rajeev Gupta and Ms Urmil Gupta. The company is engaged in the manufacturing and trading of textile products. The company manufactures home furnishing products which includes bedroom accessories (blankets, bed sheets, pillow covers) and kitchen accessories (velvet bottle cover, aprons). The company is also engaged in trading of blankets. PIP's also export its products to U.K., Canada and Europe. PIP mainly procures its raw material i.e. cotton fabric and velvet etc. from domestic manufactures. The process of the company are ISO 9001 & 14001 certified and the manufacturing unit is located at Panipat, Haryana. PARI AGRI: CARE Keeps B- Debt Rating in Not Cooperating Category ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Pari Agri Grain Industries Private Limited (PAGIPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.00 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated October 21, 2021, placed the rating(s) of PAGIPL under the 'issuer non-cooperating' category as PAGIPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. PAGIPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 6, 2022, September 16, 2022, September 26, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Dewas (Madhya Pradesh) based Pari Agri Grain Industries Private Limited (PAGIPL) was formed in 2012 with name Jai Shri Balaji Warehousing & Real Estate Private Limited as a Private Limited Company by Mr. Ashish Agrawal, Mr April Agrawal and Ms. Isha Agrawal. Later on, in May 2015 the company name has been changed from Jai Shri Balaji Warehousing & Real Estate Private Limited to Pari Agri Grain Industries Private Limited. The firm is engaged in the business of trading of agro commodities viz. soybean seeds, wheat, channa, masoor dal etc. PAGIPL procures commodity from local market and sell it within state of Rajasthan, Gujarat and Madhya Pradesh etc. PRATIBHA INDUSTRIES: NCLT Told Liquidator to Conduct Fresh Auction ------------------------------------------------------------------ The Economic Times reports that India's bankruptcy court has directed the liquidator of BSE-listed infrastructure firm Pratibha Industries to conduct a fresh valuation of the company. It has also asked for a fresh auction of the company as a going concern, ET says. ET relates that the Mumbai bench of the National Company Law Tribunal (NCLT), while cancelling its sale to successful bidder VDB Projects Pvt Ltd, observed that the Bengaluru-based firm had been given opportunities to deposit the agreed amount, but had not complied with the same to complete the sale process. Pratibha Industries Limited was engaged in infrastructure development with a focus on water supply and environment engineering assignments, and urban infrastructure projects. PIL commenced insolvency proceedings on Feb. 1, 2019. PRINT-TECH OFFSET: CARE Keeps B Debt Ratings in Not Cooperating --------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Print-Tech Offset Private Limited (POPL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.45 CARE B; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Long Term/Short 1.00 CARE B; Stable/CARE A4; Term Bank ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated October 25, 2021, placed the rating(s) of POPL under the 'issuer non-cooperating' category as POPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. POPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 10, 2022, September 20, 2022, September 30, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Incorporated in May 2004, Print-Tech Offset Private Limited (POPL) was promoted by Mr. Brundaban Behara , Mr. Biswa Ranjan Nayak Mrs. Namita Behara and Mrs. Manjubala Nayak . Since its formation the entity is engaged in the business of off-set printing, pre-press (i.e. designing, processing etc.) and post-press (i.e. binding, lamination etc.) related activities at Bhubaneshwar, Odisha. The product portfolio includes brochures, magazines, periodicals, leaflets, and books, etc. with an installed capacity of 6,00,000 pieces per day. Mr. Brundaban Behara (aged about 43 years) and Mr. Biswa Ranjan Nayak (aged about 47 years) having almost two decades of experience in this line of business, looks after the day to day operations of the company with other directors and a team of experienced professional. S. N. HOTELS: CARE Lowers Rating on INR5.59cr LT Loan to B- ----------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of S. N. Hotels and Resorts Private Limited (SNHRPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.59 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE B; Stable Short Term Bank 0.15 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated October 22, 2021, placed the rating(s) of SNHRPL under the 'issuer non-cooperating' category as SNHRPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SNHRPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 7, 2022, September 17, 2022, September 27, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings assigned to the bank facilities of SNHRPL have been revised on account of non-availability of requisite information. The rating also factored in significant decline in scale of operations along with deterioration in capital structure and debt coverage indicators during FY21 and FY22 over FY20. S.N. Hotels & Resorts Private Limited (SNHRPL) was incorporated in October, 1998 in the name of "Hotel Nest" promoted by the Nayak family with the property located at Sankarpur, Dist-Purba Medinipur, West Bengal. SNHRPL started commercial operation with 15 rooms in October, 2002 and gradually increased its capacity over the years. It is currently operating with 73 rooms and also it has two banquet halls, an air conditioned multi cuisine restaurant & bar and a health club. Other amenities in the hotel include private beach, gymnasium, game rooms, outdoor games facility, boating club, children Park, special arrangement for DJs, live band and bon fire and facilities for pick-up and drop. The occupancy rate of the hotel averagely remained at around 45%-48% throughout the year, which increases to around 70% during peak season (in the month of October to February). Mr. Debabrata Nayak (aged 42 years), having around two decades of experience in the same line of industry, looks after the overall management of the company with adequate support from other director(Mr. Chandrakala Nayak)and a team of experienced personnel. SANJAY GRAIN: CARE Lowers Rating on INR32.56cr LT Loan to B+ ------------------------------------------------------------ CARE Ratings has revised the ratings on certain bank facilities of Sanjay Grain Products Private Limited (SGPPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 32.56 CARE B+; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE BB- Short Term Bank 6.00 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated October 26, 2021, placed the rating(s) of SGPPL under the 'issuer non-cooperating' category as SGPPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SGPPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 11, 2022, September 21, 2022, October 1, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings assigned to the bank facilities of SGPPL have been revised on account of non-availability of requisite information. The rating also factored in increase in total debt levels, decline in profitability, deteriorated capital structure and debt coverage indicators during FY22. SGPPL, incorporated in May 1997, is promoted by Mr. Deepak Kumar Mittal and his brother, Mr. Sanjay Kumar Mittal, of Raipur, Chhattisgarh. The company is engaged in milling and processing of rice, with an installed capacity of 26,400 MTPA at Raipur. SGPPL also established a new rice mill and parboiling plant of 8 MTPH which became operational from August, 2016. The company sells its processed rice under the name "36 Bhog", "Ladla Beta", "Maharathi" and "Sunultra" which contributed around 97% of the total revenue in FY17. SGPPL is also involved in trading of pulses, ferro silicon, silico manganese, and boric acid. SRG ALUMINIUM: CARE Keeps B Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of SRG Aluminium Private Limited (SAPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 13.94 CARE B; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated October 20, 2021, placed the rating(s) of SAPL under the 'issuer non-cooperating' category as SAPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SAPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 5, 2022, September 15, 2022, September 25, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Gwalior (Madhya Pradesh) based SAPL was incorporated in November 2010 by Mr Lalit Gupta along with his son, Mr Uday Gupta and other family members. SAPL is engaged in the business of manufacturing of aluminium alloys-based ingots which are used mainly in construction industry, electrical industry, light weight applications, automobiles, railways, ship building and other applications. The plant of the company is located at Gwalior with an installed capacity of 7000 Metric Tonnes Per Annum (MTPA) for manufacturing of aluminium alloys-based ingots. The main raw material of the company is aluminium scrape which it procures from domestic market as well as import mainly from South Africa, Europe, Dubai and USA etc. SAPL sells its product to client in domestic market in Punjab, Madhya Pradesh, Delhi, Uttar Pradesh and Uttarakhand. SRINIVASA STEEL: CARE Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Srinivasa Steel Products (SSP) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 9.25 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated November 25, 2021, placed the rating(s) of SSP under the 'issuer non-cooperating' category as SSP had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SSP continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated October 11, 2022, October 21, 2022, October 31, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). SSP was established in the year 2007 by Mr S Ashokumar (Managing Partner), Mr Bharat Kumar among other partners. SSP is engaged in the manufacturing of hot rolled steel stripes, Electric Resistance Welded (ERW) pipes and other steel Structural products. SSP is specialized in manufacturing of iron and steel structural products which are used in furniture, Racks and hoardings, etc. SSP sells ERW pipes and structural products to distributors across India. Raw material comprises steel and iron which are procured from local suppliers and hot rolled steel stripes manufactured are used in Manufacturing of ERW pipes and structural product. SULSON OVERSEAS: CARE Keeps B Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the ratings for the bank facilities of Sulson Overseas Private Limited (SOPL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 2.00 CARE B; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 4.00 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated October 18, 2021, placed the rating(s) of SOPL under the 'issuer non-cooperating' category as SOPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SOPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 3, 2022, September 13, 2022, September 23, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Sulson Overseas Private Limited (SOPL), was originally established in 2005 as a proprietorship concern named 'Sulson Overseas' by Mr Rajesh Kumar. The constitution later was changed to private limited company in 2010 and the company is currently being managed by Mr Rajesh Kumar and Ms Phoolwati Devi. The company is engaged in milling of rice at its manufacturing facility in Panipat, Haryana with an installed capacity of 32,000 tonnes of brown rice per annum. The company is also engaged in trading of basmati rice, non-basmati rice and wheat flour. SOPL is engaged in 100% export of its products to countries such as Australia, Germany, France, Austria, Mauritius, Maldives, U.A.E., Bahrain, Qatar, Kuwait, South Africa, Algeria, Iraq, Middles East Countries etc. The company sells its products to wholesalers under its own brand names 'BANNO' and 'SAMAA'. The raw material i.e. brown rice is procured from rice millers based in Punjab and Haryana through brokers. TAJSHREE CARS: CARE Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Tajshree Cars Private Limited (TCPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 14.85 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated November 17, 2021, placed the rating(s) of TCPL under the 'issuer non-cooperating' category as TCPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. TCPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated October 3, 2022, October 13, 2022, October 23, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). TCPL was established in the year 2013. The company is an authorized dealer for the four wheelers of Honda Cars India Limited (Honda) in Nagpur region. ================= I N D O N E S I A ================= LIPPO KARAWACI: Moody's Affirms B3 CFR & Alters Outlook to Stable ----------------------------------------------------------------- Moody's Investors Service has affirmed the B3 corporate family rating of Lippo Karawaci Tbk (P.T.). At the same time, Moody's has affirmed the B3 backed senior unsecured rating of the bonds issued by Theta Capital Pte. Ltd., a wholly-owned subsidiary of Lippo Karawaci. The bonds are guaranteed by Lippo Karawaci and some of its subsidiaries. Moody's has also changed the outlook on all ratings to stable from positive. "The change in outlook to stable from positive reflects Moody's expectation that Lippo Karawaci's marketing sales will likely drop over the next 12 months as housing demand moderates on the back of higher mortgage and inflation rates. It also takes into account the weaker-than-expected operating cash flow generation at the holding company such that it would be marginally cash flow negative over the next 12-18 months," says Rachel Chua, a Moody's Vice President and Senior Analyst. "While refinancing risk is not yet imminent, the company has a large debt maturity wall with $405 million of bonds maturing in January 2025 and another $417 million of bonds maturing in October 2026," adds Chua, who is also the Lead Analyst for Lippo Karawaci. RATINGS RATIONALE Lippo Karawaci's marketing sales were IDR3.5 trillion during the first nine months of 2022 (9M 2022), comprising IDR2.9 trillion of sales at the holding company level. Its full-year marketing sales will likely be IDR4.7 trillion-IDR4.8 trillion, lower than its original target of IDR5.2 trillion. Given weaker macroeconomic conditions and Lippo Karawaci's focus on the mass-market residential segment, Moody's estimates Lippo Karawaci's marketing sales in 2023 will likely fall 5% year-on-year to IDR4.5 trillion-IDR4.6 trillion. Around 60% of Lippo Karawaci's marketing sales during 9M 2022 are from projects held at the holding company level. Moody's expects the proportion to remain the same over the next two years. A dependence on asset sales to boost operating cash flows would be credit negative. Lippo Karawaci's liquidity at the holding company level will be good over the next 12-18 months. As of September 30, 2022, Lippo Karawaci had cash and cash equivalents of IDR2.8 trillion at the holding company level, which will be more than sufficient to fund its negative operating cash flow of around IDR40 billion in 2023. Lippo Karawaci will also have sufficient cash to repay its short-term loan facilities, although the company will likely continue to roll over the loans and keep a larger cash buffer. Moody's expects operating cash flow (excluding land sales to third parties) at the holding company level will be marginally negative in 2023 despite continued cash collection from its strong marketing sales over the past two years, as well as lower construction spending following the completion of its legacy projects. However, its dividend cash flows have declined. While Lippo Karawaci's key operating subsidiaries, 58%-owned Siloam International Hospitals Tbk (P.T.) has and will continue to pay dividends, the 84%-owned Lippo Cikarang (P.T.) did not pay dividends in 2022. In terms of environmental, social and governance (ESG) risks, Moody's has considered Lippo Karawaci's weak execution track record, which resulted in liquidity pressure that was relieved by an IDR11.2 trillion rights issue backed by the Riady family in 2019. The current management team, led by John Riady, was put in place following the rights issue. Over the past three years, this management team met all the milestones it set in 2019, but the track record remains short. Moody's has also considered the founding family's concentrated ownership of Lippo Karawaci. However, this risk is mitigated by the oversight exercised through the presence of strategic minority shareholders on the board and partially balanced by support from its key shareholder. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could upgrade Lippo Karawaci's rating if (1) the company improves its core property development business, such that operating cash flow at the holding company level is positive without relying on any one-off asset sales; (2) the company reduces debt at the holding company level; (3) liquidity stays good over the next 12-18 months and (4) the company addresses its refinancing requirements through January 2025. Moody's could downgrade Lippo Karawaci's rating if (1) operating cash flow deteriorates at the holding company level and refinancing risk heightens, weakening liquidity; and (2) there are signs of cash leakage from Lippo Karawaci to affiliated companies, for example, through intercompany loans, aggressive cash dividends or investments in affiliates. The senior unsecured bond rating could also be downgraded if debt is incurred at its subsidiaries. The principal methodology used in these ratings was Homebuilding and Property Development published in October 2022. Lippo Karawaci Tbk (P.T.) and its subsidiaries are engaged in the development, management and operation of retail malls, hospitals, hotels, condominiums, and residential townships across multiple cities in Indonesia. Lippo Karawaci also manages Lippo Malls Indonesia Retail Trust (B3 negative), a real estate investment trust (REIT) listed on the Singapore Stock Exchange, in which it owned a 47% stake as of September 30, 2022. ========= M A C A U ========= MELCO RESORTS: S&P Affirms 'BB-' LongTerm ICR, Outlook Negative --------------------------------------------------------------- S&P Global Ratings affirmed its long-term issuer and issue ratings on Melco Resorts & Entertainment Ltd.'s (MLCO) operating subsidiaries Melco Resorts (Macau) Ltd. (MRM) at 'BB-' and Studio City Co. Ltd. at 'B+', and all issue level ratings. S&P removed all ratings from CreditWatch, where it placed them with negative implications on July 8, 2022. S&P said, "The negative outlooks on our ratings on both subsidiaries reflect continuing stress on MLCO's revenue and cash flow in Macao. We expect that Macao-derived free operating cash flow will remain negative in the first half of 2023, and that leverage will stay above our downgrade threshold in coming quarters." A more rapid easing of COVID-19 control measures in China than previously anticipated should support Macao's GGR recovery in 2023 and allow MLCO to reduce leverage below 4.5x by late 2023 to early 2024 on an EBITDA run-rate basis. In December 2022, mainland China and Macao shifted away from their previous zero-COVID-19 policy stance, and relaxed travel restrictions, including testing and quarantine requirements. This was earlier than S&P Global Ratings' prior expectation of a gradual relaxation starting in the second quarter of 2023. Reduced testing and removal of quarantine measures, coupled with the reinstatement of electronic visas (e-visas) on Nov. 1, 2022, will lower entry hurdles for individuals entering Macao and support a recovery in visitation. As a result, S&P believes Macao's GGR recovery could improve sustainably, assuming the current virus wave begins to subside post Chinese New Year. S&P said, "On Jan. 5, 2022, we updated our base-case forecast for Macao mass GGR to recover to 60%-70% of 2019 levels in 2023, the upper end of our previously published 50%-70% range. We expect the recovery could be gradual in the first few months, as high illness caseloads in China could initially make people reluctant to venture to Macao. "The recovery in mass GGR is likely to accelerate more significantly in the second half of the year (to above 80% of 2019 levels), based on the recovery we have observed in other gaming markets like Las Vegas and Singapore. This should lower MLCO' cash burn and support improvement in credit measures over the next 12 months. "Based on our revised Macao GGR forecast, we assume MLCO's EBITDA could be approximately 50% of 2019 levels by 2023, and close to full recovery in 2024. This includes an incremental contribution from Studio City Phase 2 that is scheduled to open in mid-2023. As a result, MLCO's adjusted leverage could improve to about 4.0x-5.0x in the fourth quarter of 2023 and 3.9x in 2024, on an EBITDA run-rate basis. The new concession award in Macao has eliminated licensing uncertainty. The awarding of a 10-year gaming concession to the six incumbent casino operators (including MRM), effective Jan. 1, 2023, was in line with our expectations. As part of the renewal, the Melco group has agreed to invest approximately US$1.5 billion on both capital and operating projects. These investment commitments would likely be spread out across the 10-year term of the new concession and include a mixture of non-gaming capital expenditures and operating expenses to support non-gaming amenities and events. This level of investment is likely manageable for the group given the anticipated recovery in Macao GGR beginning this year. MLCO has solid liquidity to navigate a gradual recovery this year. According to our sensitivity analysis, MLCO has more than 20 months of liquidity, including cash and revolving credit lines, to cover its fixed operating expenses even under zero-revenue conditions. The company has no debt maturities until 2025. MLCO's solid liquidity profile and our expectation that incremental risks will not materialize in the next 24 months warrant its forward-looking position on its credit metrics recovery. The negative outlook reflects continued stress on MLCO's revenue and cash flow in Macao, S&P's expectation that free operating cash flow in Macao will remain negative in the first half of 2023, and our expectation that leverage will remain above our downgrade threshold in coming quarters. The biggest downside risk to our 2023 forecast is that, when large numbers of people contract COVID-19, fear among the public will lead to more voluntary social distancing and more suspension of activity and spending. S&P also cannot fully rule out renewed imposition of restrictions. This could cause a slower ramp up in Macao's mass GGR recovery. S&P said, "We could lower the ratings if Macao's mass GGR in 2023 does not recover in a manner that would allow MLCO to reduce our ratio of S&P Global Ratings-adjusted net debt to EBITDA to 4.5x or below by late 2023 or early 2024 on an EBITDA run-rate basis. The threshold at MLCO is based on a 5.0x assumption at Melco International Development Ltd., the ultimate parent of the group. "We could revise our outlook to stable once we expect that MLCO's cash flow in Macao will recover in a manner that would reduce and sustain leverage below 4.5x. This would likely result if pent-up demand for gaming in Macao from customers in mainland China leads to faster recovery in visitation and spend than we currently anticipate in light of the ongoing public health situation." =============== M A L A Y S I A =============== EA TECHNIQUE: Court Sanctions Scheme of Arrangement With Creditors ------------------------------------------------------------------ theedgemarkets.com reports that the High Court has sanctioned marine vessel operator EA Technique Bhd's scheme of arrangement with its creditors. The sanction order was granted by Judicial Commissioner Liza Chan Sow Keng on Jan. 4, the report relates. EA Technique was represented by lawyers Lee Shih, Nathalie Ker and Pang Huey Lynn from Lim Chee Wee Partnership. A scheme of arrangement is normally used when a company facing financial difficulty has reached an agreement with its creditors to pay back all or part of its debts over an agreed timeline. On Jan. 3, EA Technique said in a filing to Bursa Malaysia that it was still in the midst of formulating a plan to regularise its financial conditions, theedgemarkets.com relays. "The company has approximately two months to submit its regularisation plan to the relevant regulatory authorities for approval," the company said in the filing. About E.A. Technique E.A. Technique (M) Bhd owns and operates marine vessels focusing on marine transportation and offshore storage of oil and gas, and provision of port marine services. The Company also owns a shipyard involved in shipbuilding, ship repair and minor fabrication of steel structures. On Feb. 28, 2022, Chan had granted a restraining order to EA Technique after the firm slipped into Practice Note 17 (PN17) status, according to theedgemarkets.com. The company had triggered the PN17 criteria when its shareholders' equity as at Dec. 31, 2021 stood at RM5.96 million, which was less than 50% of its share capital of RM179.755 million, while its auditor had raised concern over its ability to continue as a going concern. The company was therefore required to submit a regularisation plan to the Securities Commission Malaysia within 12 months. In May 2022, external auditor Messrs Ernst & Young PLT (EY) expressed a disclaimer of opinion in its audited financial statements for the financial year ended Dec. 31, 2021 (FY2021), theedgemarkets.com relates. According to EA Technique's bourse filing on May 18, 2022, EY had highlighted the group's net loss of RM150.6 million and the company's net loss of RM161.2 million for FY2021. It also noted that at end-December 2021, the current liabilities of the group had exceeded its current assets by RM405.3 million, but it only had cash and bank balances of RM6.4 million, while the company's current liabilities had exceeded its current assets by RM416.9 million, but its cash and bank balances only stood at RM5.5 million, theedgemarkets.com relayed. "These events and conditions indicate the existence of material uncertainty that may cast significant doubt on the ability of the group and the company to continue as a going concern," said EY. ================= S I N G A P O R E ================= AHOMESTORY INTERIOR: Court to Hear Wind-Up Petition on Jan. 20 -------------------------------------------------------------- A petition to wind up the operations of Ahomestory Interior Design Private Limited will be heard before the High Court of Singapore on Jan. 20, 2023, at 10:00 a.m. Maybank Singapore Limited filed the petition against the company on Dec. 29, 2022. The Petitioner's solicitors are: Shook Lin & Bok LLP 1 Robinson Road #18-00, AIA Tower Singapore 048542 BLUE BUCKS: Creditors' Proofs of Debt Due on Feb. 5 --------------------------------------------------- Creditors of Blue Bucks Investments Pte. Ltd. are required to file their proofs of debt by Feb. 5, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Dec. 30, 2022. The company's liquidators are: Deepak Kumar Khandelwal Lum Keng Chee AiGO Pte Ltd c/o 49 Strathmore Ave #02-217, Singapore 140049 GRASS ROOTS: Creditors' Proofs of Debt Due on Feb. 5 ---------------------------------------------------- Creditors of Grass Roots Asia Pacific Pte. Ltd. are required to file their proofs of debt by Feb. 5, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Dec. 29, 2022. The company's liquidators are: Ng Kian Kiat Goh Wee Teck c/o 8 Wilkie Road #03-08 Wilkie Edge Singapore 228095 LUXURIOUS ENGINEERING: Court to Hear Wind-Up Petition on Jan. 20 ---------------------------------------------------------------- A petition to wind up the operations of Luxurious Engineering (SG) Pte Ltd will be heard before the High Court of Singapore on Jan. 20, 2023, at 10:00 a.m. Maybank Singapore Limited filed the petition against the company on Dec. 29, 2022. The Petitioner's solicitors are: Shook Lin & Bok LLP 1 Robinson Road #18-00, AIA Tower Singapore 048542 MOLA SUBSEA: Court to Hear Wind-Up Petition on Jan. 20 ------------------------------------------------------ A petition to wind up the operations of Mola Subsea Services Pte Ltd will be heard before the High Court of Singapore on Jan. 20, 2023, at 10:00 a.m. Alphard Offshore Pte. Ltd. filed the petition against the company on Dec. 22, 2022. The Petitioner's solicitors are: Rajah & Tann Singapore LLP 9 Straits View #06-07 Marina One West Tower Singapore 018937 SUBSTANTIA PRIVATE: Creditors' Proofs of Debt Due on Feb. 5 ----------------------------------------------------------- Creditors of Substantia Private Limited are required to file their proofs of debt by Feb. 5, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Dec. 21, 2022. The company's liquidators are: Farooq Ahmad Mann M/s Mann & Associates PAC c/o 3 Shenton Way #03-06C Shenton House Singapore 068805 ********* 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 2023. 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 ***