/raid1/www/Hosts/bankrupt/TCRAP_Public/230222.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
Wednesday, February 22, 2023, Vol. 26, No. 39
Headlines
A U S T R A L I A
BAM CREATIVE: First Creditors' Meeting Set for March 1
CLOUDS RETREATS: First Creditors' Meeting Set for Feb. 28
FOCUS CONTAINER: Placed Under Creditors' Voluntary Winding-Up
M & O TRUE: First Creditors' Meeting Set for March 2
NORTHBROOK VILLAGE: First Creditors' Meeting Set for Feb. 28
TRADERCOBB PTY: First Creditors' Meeting Set for March 1
WISR INDEPENDENCE 2023-1: Moody's Assigns B1 Rating to Cl. F Notes
C H I N A
ANYUAN COAL: Unit Applies For Bankruptcy Liquidation
CHINA: Weaker LGFVs Face Default Risks, Analysts Warn
I N D I A
ADINATH SILKS: ICRA Keeps D Debt Rating in Not Cooperating
BHARAT TIMBER: ICRA Keeps B+ Debt Rating in Not Cooperating
BOMBAY MINERALS: ICRA Reaffirms B+ Rating on INR28cr Cash Loan
EAGLE CONTINENTAL: ICRA Keeps D Debt Ratings in Not Cooperating
ISHANIKA HOTELS: CRISIL Keeps D Debt Rating in Not Cooperating
JAGANNATH TRADERS: CRISIL Keeps D Debt Rating in Not Cooperating
JONNA STEELS: ICRA Keeps B+ Debt Ratings in Not Cooperating
KHODAL DEVELOPERS: CRISIL Assigns D Rating to INR6.55cr Term Loan
MCLEOD RUSSEL: ICRA Keeps D Debt Ratings in Not Cooperating
MONTFORT EDUCATIONAL: ICRA Keeps B+ Ratings in Not Cooperating
NEYSA JEWELLERY: CRISIL Lowers Short/Long Term Loan Rating to D
P. RAJAGOPAL: CRISIL Keeps D Debt Rating in Not Cooperating
PLUTON TRADING: CRISIL Keeps D Debt Ratings in Not Cooperating
RAYBAN FOODS: ICRA Keeps D Debt Ratings in Not Cooperating
SANYEEJI ROLLING: CRISIL Keeps D Debt Ratings in Not Cooperating
SENTHIL MURUGAN: ICRA Withdraws B+ Rating on INR22cr LT Loan
SHARAVANA TRADERS: CRISIL Keeps D Debt Ratings in Not Cooperating
V.M. BAKERY: ICRA Keeps D Ratings in Not Cooperating Category
J A P A N
TOKYO ELECTRIC: To Get JPY400-Billion Bailout from Group of Banks
N E W Z E A L A N D
ATTITUDE FOODS: Court to Hear Wind-Up Petition on April 4
HERKT BROZ: Khov Jones Appointed as Receivers
NANDRO INVESTMENT: Court to Hear Wind-Up Petition on April 4
PARADISE COATINGS: Creditors' Proofs of Debt Due on March 20
SATORI HOLDINGS: Creditors' Proofs of Debt Due on March 17
P A K I S T A N
PAKISTAN: Nears IMF Bailout Pact After Tax Plan Approved
P H I L I P P I N E S
CEMEX HOLDINGS: Neutral on PHP2.1BB Tender Offer to Shareholders
S I N G A P O R E
ASIAN ENGINEERING: Members' Final Meeting Set for March 24
EDREI AGILITY: Court Enters Wind-Up Order
SEA SWIFT: Commences Wind-Up Proceedings
WILMAR CHINA: Member's Final Meetings Set for March 20
WILMAR YIHAI: Member's Final Meetings Set for March 20
S O U T H K O R E A
SK BIOPHARMA: Struggles to Stay Afloat Amid Plunge in Profits
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A U S T R A L I A
=================
BAM CREATIVE: First Creditors' Meeting Set for March 1
------------------------------------------------------
A first meeting of the creditors in the proceedings of Bam Creative
Pty Ltd will be held on March 1, 2023, at 10:30 a.m. via virtual
meeting technology.
Mervyn Jonathan Kitay of Worrells was appointed as administrator of
the company on Feb. 17, 2023.
CLOUDS RETREATS: First Creditors' Meeting Set for Feb. 28
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Clouds
Retreats Pty Ltd will be held on Feb. 28, 2023, at 10:30 a.m. at
the offices of Worrells, Suite 2, 63 The Esplanade, in
Maroochydore, Queensland.
Paul Eric Nogueira and Morgan Lane of Worrells were appointed as
administrators of the company on Feb. 16, 2023.
FOCUS CONTAINER: Placed Under Creditors' Voluntary Winding-Up
-------------------------------------------------------------
The Loadstar reports that just three months after its launch,
Australian start-up Focus Container Line has entered administration
as the post-pandemic boom in containerised shipping continues to
reverse.
Focus's service connected China's second-busiest container port,
Ningbo, with Australia and New Zealand but has become the latest
victim of plunging cargo volumes and freight rates, leaving
containers in limbo, the report says.
Brendon McQueen was Focus's largest shareholder, with an 80% stake,
while Australian forwarder Dynamic Shipping and Gregory Lawson each
held 10%.
The Loadstar, citing a notice filed with the Australian Securities
and Investments Commission, says Focus has been placed under
creditors' voluntary winding-up.
Focus operated two chartered vessels, the 1,497 teu multipurpose
BBC Denmark and 1,756 teu San Giorgio, The Loadstar notes.
According to Linerlytica, Focus chartered BBC Denmark for six to
eight months at $28,500 a day and San Giorgio for three to four
months at $23,000 daily.
San Giorgio was to have been redelivered to its Greek owner,
Eastern Mediterranean Maritime, this month, after which Focus
planned to operate BBC Denmark alone, the report says.
The report adds that United Rentals Australia is understood to have
leased 3,000 branded containers to Focus, most of which are sitting
in Australian depots.
Since freight rates reverted to the low pre-Covid-19 levels,
several newcomers to the long-haul trade have quit or made a
partial retreat, including TS Lines, SeaLead Shipping and China
United Lines. Apart from Focus, there has only been one corporate
failure: Allseas Global Project Logistics entered administration on
October 27, The Loadstar discloses.
"Essentially, this is another sign of market normalization," The
Loadstar quotes Vespucci Maritime CEO Lars Jensen as saying.
M & O TRUE: First Creditors' Meeting Set for March 2
----------------------------------------------------
A first meeting of the creditors in the proceedings of M & O True
Cuts Pty Ltd, trading as Mal & Big O's Meat Barn, will be held on
March 2, 2023, at 11:00 a.m. via virtual meeting technology.
Jonathon Kingsley Colbran and Tristana Steedman of RSM Australia
Partners were appointed as administrators of the company on Feb.
20, 2023.
NORTHBROOK VILLAGE: First Creditors' Meeting Set for Feb. 28
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Northbrook
Village Pty Ltd will be held on Feb. 28, 2023, at 1:00 p.m. at the
offices of Worrells, Suite 2, 63 The Esplanade, in Maroochydore,
Queensland.
Paul Eric Nogueira and Morgan Lane of Worrells were appointed as
administrators of the company on Feb. 16, 2023.
TRADERCOBB PTY: First Creditors' Meeting Set for March 1
--------------------------------------------------------
A first meeting of the creditors in the proceedings of TraderCobb
Pty Ltd will be held on March 1, 2023, at 11:00 a.m. at Level 11/6
O'Connell Street, in Sydney, NSW, and via virtual facilities.
Timothy Cook of Balance Insolvency was appointed as administrator
of the company on Feb. 20, 2023.
WISR INDEPENDENCE 2023-1: Moody's Assigns B1 Rating to Cl. F Notes
------------------------------------------------------------------
Moody's Investors Service has assigned definitive ratings to the
notes issued by AMAL Trustees Pty Limited as trustee of Wisr
Independence Trust 2023-1.
Issuer: AMAL Trustees Pty Limited as trustee of Wisr Independence
Trust 2023-1
AUD120.0 million Class A Notes, Assigned Aaa (sf)
AUD47.6 million Class B Notes, Assigned Aa2 (sf)
AUD4.0 million Class C Notes, Assigned A2 (sf)
AUD8.8 million Class D Notes, Assigned Baa2 (sf)
AUD6.0 million Class E Notes, Assigned Ba1 (sf)
AUD5.2 million Class F Notes, Assigned B1 (sf)
The AUD8.4 million Class G Notes consisting of Class G1 and Class
G2 are not rated by Moody's.
The transaction is a cash securitisation of a portfolio of secured
auto loans extended to obligors located in Australia. All loans
were originated and are serviced by Wisr Finance Pty Ltd (Wisr,
unrated), a wholly owned subsidiary of Wisr Limited (unrated). This
is Wisr's inaugural secured auto loan asset-backed securitisation
(ABS) transaction.
Wisr is an Australian non-bank lender providing consumer loans,
including unsecured personal loans and secured auto loans, to
borrowers in Australia. As of November 2022, Wisr's consumer loan
portfolio amounted to around AUD908 million, including AUD350
million of auto loans. Wisr started originating unsecured personal
loans in 2015 and secured auto loans in Q4 of 2019.
Wisr started out as a peer-to-peer lender in 2015 under the name of
DirectMoney. The funding model switched to wholesale in 2016,
followed by rebranding to Wisr in 2018.
RATINGS RATIONALE
The ratings take into account, among other factors, (1) Moody's
evaluation of the underlying receivables and their expected
performance; (2) evaluation of the capital structure and credit
enhancement provided to the rated notes; (3) availability of excess
spread over the transaction's life; (4) the liquidity facility in
the amount of 1.5% of the rated notes balance; (5) the legal
structure; (6) Wisr's experience as servicer; and (7) presence of
AMAL Asset Management Limited as the back-up servicer.
According to Moody's, the transaction benefits from all loans in
the pool fully amortising over their respective term in monthly or
fortnightly installments. As such, the borrowers do not face
refinancing or payment shock risk arising in case of loan with
balloon payments at the end of the loan term.
The credit challenges in the transaction include (1) limited
historical data available for the portfolio and (2) exposure to
younger demographic:
(1) Wisr is a relatively new originator, with relevant historical
default data only available from the second quarter of 2020. As
such, the pool's performance could be subject to greater
variability than the currently available default data indicates.
Moody's has incorporated an additional stress into its default
assumptions to account for the limited data.
(2) Around 28.3% of loans in the pool are to borrowers between 18
and 25 years old. Default rates for younger borrowers could be
higher, because their employment could be less stable. They also
have less history with repayment of financial commitments. Moody's
have accounted for this in Moody's default and PCE assumptions.
Moody's portfolio credit enhancement ("PCE") - representing the
loss that Moody's expects the portfolio to suffer in the event of a
severe recession scenario - is 24%. Moody's mean default for this
transaction is 5.0% and recovery is 25%.
Key transactional features are as follows:
The notes will be repaid on a sequential basis initially. Once
step-down conditions are satisfied, all notes, excluding Class G
Notes, will receive their pro-rata share of principal. Step-down
conditions include, among others, credit enhancement of the Class A
notes is at least 1.1 times the Class A note subordination
percentage as at the settlement date and no unreimbursed
charge-offs.
A swap provided by National Australia Bank Limited
(Aa3/P-1/Aa2(cr)/P-1(cr)) will hedge the interest rate mismatch
between the assets bearing a fixed rate of interest, and floating
rate liabilities. The notional balance of the swap will follow a
schedule based on amortisation of the assets assuming a certain
prepayment rate.
AMAL Asset Management Limited is the back-up servicer. If Wisr is
terminated as servicer, AMAL will take over the servicing role in
accordance with the standby servicing deed and its back-up
servicing plan.
Key pool features are as follows:
As of the November 30, 2022 cut-off date, the securitised pool
consisted of 6,650 personal loans. The total outstanding balance of
the receivables was AUD199,999,417.
Around 66.6% of the loans are secured by used vehicles.
The weighted average interest rate of the portfolio is 8.1%, with
interest rates ranging from 3.5% to 17.4%.
74.3% of loans are to borrowers who are in full-time employment.
The weighted average Equifax credit score of the portfolio is
813.
The weighted average remaining term of the portfolio is 64.6
months. The weighted average seasoning of the initial portfolio is
7.4 months.
Methodology Underlying the Rating Action
The principal methodology used in these ratings was "Moody's Global
Approach to Rating Auto Loan- and Lease-Backed ABS" published in
November 2022.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that could lead to an upgrade of the notes include a rapid
build-up of credit enhancement due to sequential amortization or a
better-than-expected collateral performance. The Australian job
market is a primary driver of performance.
Factor that could lead to a downgrade of the notes is a
worse-than-expected collateral performance, poor servicing, error
on the part of transaction parties, a deterioration in the credit
quality of transaction counterparties, a lack of transactional
governance, or fraud.
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C H I N A
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ANYUAN COAL: Unit Applies For Bankruptcy Liquidation
----------------------------------------------------
MarketScreener reports that Anyuan Coal Industry Group subsidiary
Pingxiang Juyuan Coal Industry, has applied for bankruptcy
liquidation.
Anyuan Coal Industry Group Co., Ltd. is a China-based company,
principally engaged in the mining and operation of coal, and coal
and materials circulation business. The Company's coal products
mainly include cleaned coal, steam coal, coking coal, mixed coal,
screen blending coal, cleaned powder coal and lump coal. The
Company conducts its businesses within domestic markets.
CHINA: Weaker LGFVs Face Default Risks, Analysts Warn
-----------------------------------------------------
South China Morning Post reports that China's weaker local
government financing vehicles (LGFVs) are facing higher risks of
default and missed payments amid rising financing costs, a wave of
maturities and a property crisis that is taking a toll on local
authorities' balance sheets, according to analysts.
This is expected to exert upwards pressure on an already high
delinquency rate among high-yield issuers in the Asia-Pacific this
year, the Post says.
One of the two main sectors for offshore bond issuance in China -
the other being the beleaguered property industry - could see risk
spill over to the broader bond market and threaten systemic
financial stability in the world's second-largest economy, analysts
said, although missed payments are more likely to be seen beyond
the public bond market in the short run, according to the report.
"Individual LGFVs' credit risks, especially in private equity,
non-standard debt instruments, and commercial bills have increased
to some extent, enhancing the tailwind risk for [other] LGFVs and
regions," the Post quotes Ben Yau, senior director at China Lianxin
Credit Rating Global, as saying.
LGFVs are platforms used by the local governments to borrow
off-budget capital and facilitate local infrastructure and public
projects, which would otherwise be unable to make ends meet.
According to the Post, Lianxin warned that they will face
increasing repayment pressure amid tighter refinancing conditions
as the US Federal Reserve expects to continue raising interest
rates.
The outstanding balance of LGFVs' offshore debt is around US$84.2
billion, of which 84% will mature between this year and 2025,
Lianxin said at a briefing on Feb. 16, the Post relays.
Because local jurisdictions were hit hard by the high costs of
Covid-19 control measures, a slump in revenue from land sales and
an economic slowdown, LGFVs are finding it harder to service their
debt, the report notes. Zunyi Road and Bridge Construction Group in
Guizhou province, for example, recently rolled over 20-year-old
loans worth CNY15.6 billion (US$2.27 billion).
Moody's recently highlighted the fragile investor sentiment and
likely spillover effect to the bond market.
"An unexpected LGFV bond default as a result of a gap in regional
local government (RLGs) support . . . could lead to contagion in
the onshore bond market, with implications for RLGs, financial
institutions and [state-owned enterprise]," said analysts led by
Martin Petch in a report on Feb. 15, the Post relays.
According to the report, S&P Global said the weaker LGFVs could
face increased risk of default, after they rushed to the offshore
bond market last year despite the high costs.
Issuers with no credit rating accounted for 67% of those in the
offshore market in the first 10 months of last year, up from 45% in
2020, according to data from Lianxin. The proportion of
lower-prefecture, district and county level issuers in the segment
shot up to 50% of the total offshore LGFV issuers in the first 10
months of last year, from 26% in 2021, and 17% in 2020.
"The weaker players are forced to pay the highest prices,
amplifying credit risks and polarisation," said S&P analysts led by
Wu Yuehao in a report on January 9. "Should regulators crack down
on cross-border borrowings, weaker players in the sector could face
increased default risk."
The Post says the heightened risk could endanger the fragile
offshore credit market, which had already been hit hard by frequent
defaults and payment extensions by heavily indebted Chinese
developers. Such home builders accounted for all of the 23 defaults
in the Asia-Pacific region last year.
The high-yield default rate among Asia-Pacific's non-financial
companies is likely to remain high this year, well above the
10-year average of 4.4%, the Post discloses citing an estimate by
ratings agency Moodys.
The LGFVs do not rely on offshore financing channels to the extent
that commercial home builders do, which should help them avoid a
major crisis like the one rattling the real estate sector.
"The chance of large-scale risk events, especially in the public
market, will be relatively low," the report quotes Lianxin's Yau as
saying. "The government is willing to prevent a default in the
public market, but whether they [individual jurisdictions] are
capable is another story."
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I N D I A
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ADINATH SILKS: ICRA Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
ICRA has retained the rating for the bank facilities of Adinath
Silks Private Limited (Erst Adinath Silks Limited) in the 'Issuer
Not Cooperating' category. The rating is denoted as "[ICRA]D;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 35.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in 2016, ASPL is involved in the trading of raw silk,
silk fabrics and silk saris. Initially, incorporated as a
proprietorship concern by Mr. Rasiklal K Shah, the company has been
in existence since 1959. The proprietorship entity was converted
into Adinath Silks Limited (public limited company) in 2002 and
further converted into Private Limited in June 2016. The product
profile of ASPL comprises various silk fabrics such as chiffon,
taffeta, georgette, dupion and plain silk. The company also trades
in silk saris on order basis. ASPL procures yarn and silk fabrics
from small-scale weavers located in and around Bangalore which are
then sold to wholesalers and semi-wholesalers predominantly in
Bangalore.
BHARAT TIMBER: ICRA Keeps B+ Debt Rating in Not Cooperating
-----------------------------------------------------------
ICRA has retained the long term and short term ratings for the bank
facilities of Bharat Timber & Construction Co.in the 'Issuer Not
Cooperating' category. The ratings are denoted as "[ICRA]B+
(Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short Term- 14.00 [ICRA]A4 ISSUER NOT
Fund Based COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 3.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Established in 1948, BTC is a family managed partnership firm
promoted by Shri Jyotin C. Gandhi and Ms. Renuka J. Gandhi (wife of
Shri Gandhi) engaged in the business of mining and export of rough
granite blocks. The firm also sells granite slabs in the domestic
market; however, it accounts for less than 1% of total sales. It
currently operates three quarries in the villages Balkundi (66
acre), Purthageri (17 acre) and Antharthana (13 acre) near Ilkal in
Karnataka with a mining area spanning across 95 acre, under the
lease for 99 years. The mines are particularly rich in imperial red
and ruby red varieties of granite, which are exported mainly to
China, Hong Kong and Taiwan. BTC deals with polished export quality
granites such as New Ruby Red (suitable for interior and exterior
applications - counter tops and bars, interior wall panels, water
walls, fountains and monuments) and New Imperial Red (best used for
flooring and kitchen counters). The firm is also engaged in
generating and selling of electricity. BTC has three windmills in
Rajasthan with electricity generation capacity of 2.4 MW.
BOMBAY MINERALS: ICRA Reaffirms B+ Rating on INR28cr Cash Loan
--------------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of Bombay
Minerals Limited (BML), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-Term
Fund-Based–
Cash Credit 28.00 [ICRA]B+(Stable); reaffirmed
Short-Term
Non-Fund
Based Limits 1.00 [ICRA]A4; reaffirmed
Long Term/ 1.00 [ICRA]B+(Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain
under issuer not cooperating
category
Rationale
The ratings favorably factor in BML's access to captive bauxite
mines in Jamnagar and proximity of the mines to its calcined
bauxite manufacturing facility. ICRA notes that BML has a 31.76%
stake (as on December 31, 2022) and management control in Orient
Abrasives Limited (OAL), which provides it with ready access to
additional bauxite mines, facilities for manufacturing higher
value-added products from calcined bauxite. BML also enjoys the
extended credit period against supplies and advances against future
procurement from OAL. Besides, BML can liquidate its stake in OAL
to meet any exigency, as witnessed in the past. ICRA also notes
that the capital structure of BML is likely to remain comfortable
in the near term in the absence of any major debt-funded capital
expenditure (capex).
The company's performance in FY2022 was weaker than expected due to
subdued demand for bauxite, unavailability of plantgrade bauxite
and high overhead expenses in the proppant division, resulting in
operating losses.
In H1 FY2023, while the company's performance improved (wherein it
reported profit at the operating and net levels) primarily due to
savings in fixed overheads (owing to sale of loss-making proppant
division in FY2022) and additional income from job work for OAL,
its liquidity position continued to be stretched due to increased
working capital intensity mainly on account of overdue receivables.
The company's ability to improve profitability and liquidity
position remains important from the credit perspective.
The ratings are also tempered by the constrained financial
flexibility of BML due to weak financial profile of its parent
company, Ashapura Minechem Limited (AML), which remains a
non-performing asset (NPA) for its lenders. ICRA also notes the
company's exposure to customer concentration risks with the top
customer (OAL) accounting for over 70-80% of the revenues each
fiscal, and to the regulatory risks associated with the bauxite
mining industry.
The Stable outlook on [ICRA]B+ rating reflects ICRA's opinion that
the company will benefit from the savings in overhead expenses,
going forward, due to the sale of loss-making proppant division and
the recent availability of plant grade bauxite in its mines, which
will improve its capacity utilisation.
Key rating drivers and their description
Credit strengths
* Access to bauxite mines: The company has leases for two mines in
the Jamnagar district of Gujarat with validity till 2030. The mines
have sizeable reserves and will last for at least 8-10 years. While
BML's capacity utilisation had remained sub-optimal in the past due
to non-availability of plant-grade bauxite, the same has improved
in FY2023, as per the management. This is expected to improve the
capacity utilisation, going forward. Nonetheless, unfavourable
demand outlook for raw bauxite in the export markets along with the
prevailing export duty on the same remain a concern.
* Benefits derived from a 31.76% stake in OAL: BML holds a 31.76%
stake in OAL (as on December 31, 2022) and has management control
over the company. OAL manufactures calcined and fused alumina
products and reported an operating margin and a net margin of 9.4%
and 3.5%, respectively on an operating income of INR151.5 crore in
H1 FY2023 (operating margin and net margin of 8.6% and 2.7%,
respectively in FY2022 on an operating income of INR258.8 crore).
The management control provides ready access to additional bauxite
mines and facilities for manufacturing higher value-added products
from calcined bauxite. OAL also provides extended credit period
against supplies and advances against future procurement to BML.
Besides, BML can liquidate its stake in OAL (being a listed
company) in case of any exigency, as witnessed in the past. BML had
liquidated 3.10% and 4.24% stake in OAL in FY2019 and FY2020,
respectively to meet a part of its liquidity requirement.
Credit challenges
* Stretched financial and liquidity profile: BML's liquidity
profile remains weak due to cash losses incurred in FY2020, FY2021
and FY2022. The same was on account of subdued demand for bauxite,
unavailability of plant-grade bauxite and high overhead expenses in
the proppant. In H1 FY2023, while the company's performance
improved (wherein it reported profit at operating and net levels)
primarily due to savings in fixed overheads (owing to sale of the
loss-making proppant division in FY2022) and additional income from
job work for OAL, its liquidity position continued to be stretched
due to increased working capital intensity of operations mainly on
account of overdue receivables. The same is also reflected in high
bank limit utilisation, increased debt levels, stretched payables
and modest liquid balances. Notwithstanding the comfortable capital
structure with a gearing of 0.5 times as on March 31, 2022, BML's
financial profile remained weak in FY2022 with negative coverage
indicators. Going forward, the ability of the company to increase
its profit and thereby improve its liquidity position and financial
profile remains key rating factors.
* Weak financial profile of the parent company: BML is a
wholly-owned subsidiary of AML. The weak financial profile of AML,
which continues to be flagged as an NPA by its lenders, remains a
key concern and in turn limits the financial flexibility of BML. A
substantial improvement in the financial health of AML, leading to
a change in its asset classification from NPA to standard, would
remain critical.
* Exposure to regulatory risks: The company remains exposed to
regulatory risks as procurement of raw bauxite depends on issuance
of royalty passes by the state government to mining companies.
* High customer concentration: BML's customer base for calcined
bauxite comprises domestic refractory manufacturers. BML is exposed
to high customer concentration risks with a single customer
accounting for over 70-80% of the revenues each fiscal (excluding
iron ore trading sales). Nevertheless, the risk is mitigated to
some extent as OAL is a sister concern of BML and BML has an
assured customer in OAL.
Liquidity position: Stretched
BML's liquidity remains stretched as reflected by its high
utilisation of fund-based working capital limits of INR28 crore
(average utilisation stood at 80% during the 12-month period ending
January 2023) and modest unencumbered cash and bank balances of
INR0.4 crore as on December 31, 2022. BML's overdue receivables
(outstanding for more than 180 days) stood high at around INR13
crore as on September 30, 2022. Timely recovery of the same remains
critical. BML does not have any major capex plans and debt
repayment obligations. While the company's current fund-based
sanctioned limit is INR28 crore, ICRA understands that the banker
has proposed to reduce the same. However, as confirmed by the
banker and management, the matter is under discussion and the
sanctioned fund-based limit continues to be INR28 crore. In case
the bank limits are reduced, ICRA expects BML to stretch the
creditors to meet its liquidity requirements.
Rating sensitivities
Positive factors - The ratings may be upgraded if the company
registers a sustained growth in revenues and profitability, leading
to an improvement in the overall financial risk profile and
liquidity position.
Negative factors - The ratings may be downgraded if continued
pressure on revenues and profitability leads to lower cash flows or
an elongation in the working capital cycle weakens the company's
liquidity position.
BML is a 100% subsidiary of AML and is primarily involved in the
mining of bauxite. BML also manufactures refractory and abrasive
grade calcined bauxite. While the refractory-grade calcined bauxite
finds application in high alumina refractory formulations, bricks
and shapes, abrasive-grade calcined bauxite is largely used in the
production of brown-fused alumina. BML has mining leases for two
mines in Jamnagar district of Gujarat with sizeable reserves. The
company's calcined bauxite manufacturing facility is located at
Khambalia in Jamnagar (Gujarat) and has an installed capacity of
85,000 metric tonnes per annum.
EAGLE CONTINENTAL: ICRA Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
ICRA has retained the rating for the bank facilities of Eagle
Continental Foods Private Limited in the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]D/[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term/ 47.50 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Fund Based remain under 'Issuer Not
Cash Credit Cooperating' Category
Long-term– 2.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term/ 30.50 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Fund Based/ remain under 'Issuer Not
Non Fund Based Cooperating' Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
ECFPL, formerly known as Eagle Potteries Private Limited (EPPL),
was incorporated in 1982. The promoters of the company are Mr.
Shahid Ali Qureshi and Mr. Sajid Ali Qureshi, both of whom have
extensive experience in the buffalo meat processing industry. The
company has an integrated plant with slaughtering, processing,
packaging, freezing and cold storage facilities at Dasna in the
Ghaziabad district of Uttar Pradesh. ECFPL's facility was closed
and sealed by Ghaziabad Development Authority (GDA) and Central
Pollution Control Board (CPCB). As per the management as well as
various media articles, the plant's operation was forced to shut
down since January 20, 2018. Since then, the company was operating
from a third-party's processing facility (Al Nasir Exports Private
Limited) in the vicinity by paying fixed processing charges.
ISHANIKA HOTELS: CRISIL Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Ishanika
Hotels Private Limited (IHPL) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 12 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with IHPL for
obtaining information through letters and emails dated November 24,
2022 and January 16, 2023 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of IHPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on IHPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
IHPL continues to be 'CRISIL D Issuer Not Cooperating'.
Incorporated in 2015, IHPL is promoted by Mr Arun Singh and his
wife Ms Rolli Singh. The company is setting up a hotel project in
the area of around 12000 sq. ft. comprising seven floors. The
property comprises 58 rooms and is situated at Gomti Nagar, Vibhuti
Khand Lucknow, and Uttar Pradesh. The commercial operations are
expected to start from April 2017.
JAGANNATH TRADERS: CRISIL Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Jagannath
Traders - Delhi (JT) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with JT for
obtaining information through letters and emails dated November 24,
2022 and January 16, 2023 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of JT, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on JT is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of JT
continues to be 'CRISIL D Issuer Not Cooperating'.
JT, based in Delhi, was established as a partnership firm between
Mr Pawan Sharma and Mr Jatin Sharma in 2014. It trades in dry
fruits, such as almonds, and herbs and spices, including cloves and
poppy seeds.
JONNA STEELS: ICRA Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has retained the rating for the bank facilities of Jonna
Steels in the 'Issuer Not Cooperating' category. The ratings are
denoted as "[ICRA]B+ (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 14.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 0.50 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Jonna Steels (JS) was founded in year 1998 by Mr. Veeranjaneyulu
and the firm is involved in trading of iron and steel products. The
firm caters to the demands of the Hyderabad, and Rayalaseema
districts like Chittoor and Anantapur. JS deals in the complete
range of products including structural, MS range (beams, flats,
rounds etc.), TMT bars etc. The firm procures traded products from
steel rolling mills located in and around Hyderabad in addition to
procuring from steel manufactures like TATA Steel and RINL.
KHODAL DEVELOPERS: CRISIL Assigns D Rating to INR6.55cr Term Loan
-----------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL D rating on the long-term
bank facilities of Khodal Developers (KD).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Mortgage Loan
Facility 6.5 CRISIL D (Assigned)
Proposed Fund-
Based Bank Limits 0.95 CRISIL D (Assigned)
Term Loan 6.55 CRISIL D (Assigned)
The rating reflects delay by KD in servicing the equated monthly
installments (of its term loan) in the previous months owing to
weak liquidity. It also factors in cyclicality inherent in the
Indian real estate industry and weaker financial risk profile.
These weaknesses are partially offset by the extensive experience
of the partner in the industrial.
Analytical Approach
CRISIL Ratings has considered standalone financials of Khodal
Developers for the rating exercise.
Key Rating Drivers & Detailed Description
Weakness:
* Exposure to risks associated with ongoing projects: The projects
have received combined booking of 50% leading to moderate customer
advances. Thus, operating performance will remain susceptible to
timely completion of the projects and flow of customer advances.
* Exposure to cyclicality inherent in the Indian real estate
industry: The real estate sector in India is cyclical and affected
by volatile prices, opaque transactions, and a highly fragmented
market structure. Hence, the business risk profile will remain
susceptible to risks arising from any industry slowdown.
Strengths:
* Extensive industry experience of the partners: The partners'
experience of over three decades in the industry has helped the
firm to establish itself in the real estate market of Mehsana,
Gujarat. Further, the partners have had a successful project
implementation track record.
Liquidity: Poor
Bank limit utilization is high at around 100.96 percent for the
past twelve months ended October 2022.
Cash accruals are expected to be negative which are insufficient
against term minimal debt obligation over the medium term.
Current ratio is low at 1.94 times on March31, 2022.
The partners are likely to extend support in the form of unsecured
loans to meet its working capital requirements and repayment
obligations
Rating Sensitivity factors
Upward factors
* Track record of timely servicing of debt and absence of any
irregularity, for at least 3 months
* Significant improvement in liquidity.
Established in 2009, KD is engaged in real estate development in
Mehsana- Gujarat. Its owned and managed by Mr. Pravinkumar Sanghvi,
Mr. Lalitkumar Shah, Mr. Nikunj P. Sanghvi and Mr. Rasiklal
Juharmal Sanghvi.
MCLEOD RUSSEL: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has retained the long term and short term ratings for the bank
facilities of Mcleod Russel India Limited in the 'Issuer Not
Cooperating' category. The rating are denoted as "[ICRA]D/[ICRA]D;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 360.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term– 491.76 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short-term 15.41 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Continues to remain under the
Others 'Issuer Not Cooperating'
Category
Long-term/ 163.92 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Fund Based/ remain under 'Issuer Not
Cash Credit Cooperating' Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
McLeod Russel India Limited (MRIL), the tea plantation company of
the Kolkata-based B.M. Khaitan Group, was originally incorporated
as Eveready Company India Private Ltd. on May 5, 1998. MRIL was
formed after the demerger of the bulk-tea business from Eveready
Industries India Ltd. (EIIL) with effect from April 1, 2004. MRIL
has acquired several other companies like Williamson Tea Assam in
FY2006, Doom Dooma Tea Company in FY2007 and Moran Tea in FY2008.
These acquisitions helped MRIL increase the number of tea estates
to 53 in India, with the total land under tea cultivation being
33,723 hectares (Ha). MRIL also acquired tea estates through its
subsidiaries in Vietnam (three tea estates and seven factories),
Uganda (six tea estates and five factories) and Rwanda (two tea
estates and two factories) between CY2009 and CY2014, which took
the total production to around 118 Mkg on a consolidated basis
during FY2018. In the recent past, MRIL has sold one tea estate in
the Dooars, and twenty more, of which eighteen are in Assam and two
in Dooars. Post conclusion of the sale, the company would have 32
tea estates with the capacity to manufacture around 42 mkg of tea
from own leaves. MRIL is primarily a producer of CTC tea, which
accounts for around 96% of the total tea production.
MONTFORT EDUCATIONAL: ICRA Keeps B+ Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has retained the rating for the bank facilities of Montfort
Educational And Charitable Trust Of The Brothers Of St. Gabriel in
the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B+ (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 10.63 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 0.37 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Established in the year 1998, Lake Montfort School is managed by
the Montfort Brothers of St. Gabriel, a religious Society of the
Catholic Church, founded by St. Louis Grigni on de Montfort in the
18th century in France. The school provides education from
kindergarten to XII students and has a student strength of 2502 for
AY2019-20. The School follows the CBSE syllabus of education from
the beginning; however, the School obtained permission and
recognition from Government of Karnataka in May 2001 for the
Primary classes and the following year, for a High School with
State syllabus to accommodate students who would prefer to study
State Board. In 2004, the school was officially affiliated to
Central Board of Secondary Education (CBSE), Delhi from Grade 1 to
10 and upgraded to Senior Secondary (Plus Two) in 2009. From then,
the school started to function as one parallel section with State
syllabus. In 2006, the school spread its wings to go overseas and
the school was very fortunate to have two linking schools in
Nottinghamshire,UK. Teachers from India and abroad have been on
several visits to widen the exposure, knowledge and global
perspective.
NEYSA JEWELLERY: CRISIL Lowers Short/Long Term Loan Rating to D
---------------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
Neysa Jewellery Limited to 'CRISIL D/CRISIL D' from 'CRISIL
B-/Stable/CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL D (Downgraded from
'CRISIL B-/Stable')
Short Term Rating - CRISIL D (Downgraded from
'CRISIL A4 ')
The downgrade reflects overdrawing in fund based working capital
facilities for more than 90 days and the delay in servicing
interest by the company due to tight cash flows owing to business
pressure.
The ratings continue to reflect the company's weak liquidity on
account of stretched working capital cycle and below-average
financial risk. These weaknesses are partially offset by the long
track record of the promoters in the jewellery industry.
Analytical Approach
Unsecured loans of INR13.23 crore as on March 31, 2021 have been
treated as neither debt nor equity as the same is expected to be
continued in the business over the medium term
Key Rating Drivers & Detailed Description
Weaknesses:
* Delays in Debt servicing: The company has delayed the interest
servicing of its fund-based limits and are overdrawn for more than
90 days mainly due to tight liquidity arising from business
pressures.
* Large working capital requirement: Operations of the company were
highly working capital intensive, as indicated by gross current
assets (GCAs) of 600 days as on December 31, 2021, driven by huge
debtors. This has resulted in constrained financial flexibility,
leading to delays in servicing of debt. Working capital cycle is
expected to remain elongated.
* Below-average financial risk profile: Total outside liabilities
to adjusted networth ratio was high at 14.12 times as on March 31,
2021, on account of modest networth of INR11.39 crore and
significant external borrowing. The debt protection metrics was
weak however interest coverage ratio of is expected to improve
above 1 times, over the medium term. The financial risk profile is
expected to remain below average on account of modest accretion to
reserves.
Strength:
* Extensive experience in the jewellery industry and funding
support from the promoters: NJL's promoters have experience of
around three decades in the jewellery business. Backed by their
experience, the company has established its market presence in the
jewellery manufacturing business, resulting in new customers.
Furthermore, the promoters support the business by infusing funds
in the form of preference shares and unsecured loans.
Liquidity: Poor
Liquidity is poor, as reflected in the limits being overdrawn for
more than 90 days. Liquidity is expected to remain poor over the
medium term with modest net cash accrual.
Rating Sensitivity factors:
Upward Factors
* Track record of timely debt servicing for 90 days or more
* Sustainable improvement in working capital management and
financial risk profile
* Net cash accrual to repayment of more than 1.1 times
Set up in 1996, NJL is promoted by Mr Pravin Shah and his family
members. The company manufactures and exports gold and silver
jewellery. Its manufacturing unit is in Santacruz Electronic Export
Processing Zone (SEEPZ), Mumbai.
P. RAJAGOPAL: CRISIL Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of P. Rajagopal
and R. Saravanan (PRRS) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Term Loan 12 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PRRS for
obtaining information through letters and emails dated November 24,
2022 and January 16, 2023 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of PRRS, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PRRS
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PRRS continues to be 'CRISIL D Issuer Not Cooperating'.
PRRS is a proprietorship firm set up by Mr P Rajagopal in December
2016. The project, Hotel Chendur Murugan, based in Tiruchendur,
began operations in June 2019.
PLUTON TRADING: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Pluton
Trading Private Limited (PTPL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Electronic Dealer 44 CRISIL D (Issuer Not
Financing Scheme Cooperating)
(e-DFS)
Proposed Long Term 5 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Proposed Long Term 6 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with PTPL for
obtaining information through letters and emails dated November 24,
2022 and January 16, 2023 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of PTPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PTPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PTPL continues to be 'CRISIL D Issuer Not Cooperating'.
PTPL was set up as a partnership firm, Pluton Trading Co, in 2013,
and was reconstituted as a private-limited company with the current
name in April 2017. It is an authorised and sole distributor of TCL
for Morbi, Gujarat, and trades sodium tripolyphosphate, soda ash,
sodium meta silicate, sodium bicarbonate and other related
chemicals which is majorly used into ceramic and sanitary ware
manufacturing. Mr Mayur Likhiya and Mr Keyur Likhiya are the
promoters.
RAYBAN FOODS: ICRA Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
ICRA has retained the long term and short term ratings for the bank
facilities of Rayban Foods Private Limited in the 'Issuer Not
Cooperating' category. The ratings are denoted as "[ICRA]D/[ICRA]D;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 2.69 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term– 30.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term/ 9.81 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Unallocated remain under 'Issuer Not
Cooperating' Category
Short-term 7.50 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Continues to remain under the
'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
RFPL commenced operations in FY2010 and is involved in the business
buffalo meat processing. The company operates from its meat
processing plant loc:ated at Hapur, Uttar Pradesh.
SANYEEJI ROLLING: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shree
Sanyeeji Rolling Mills (SSRM) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 19.48 CRISIL D (Issuer Not
Cooperating)
Funded Interest 6.11 CRISIL D (Issuer Not
Term Loan Cooperating)
Long Term Loan 13.89 CRISIL D (Issuer Not
Cooperating)
Working Capital
Term Loan 21.52 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SSRM for
obtaining information through letters and emails dated November 24,
2022 and January 16, 2023 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SSRM, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SSRM
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SSRM continues to be 'CRISIL D Issuer Not Cooperating'.
SSRM was established as a partnership firm in 2009 and started
operations from February 2011. The firm manufactures
thermo-mechanically treated (TMT) bars at its unit in Guwahati
(Assam).
SENTHIL MURUGAN: ICRA Withdraws B+ Rating on INR22cr LT Loan
------------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Senthil Murugan Jewellers Private Limited at the request of the
company and based on the No Due certificate (NDC) received from its
banker. The Key Rating Drivers, Liquidity Position, Rating
Sensitivities, Key financial indicators have not been captured as
the rated instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 22.00 [ICRA]B+ (Stable); ISSUER NOT
Fund Based COOPERATING; Withdrawn
Cash Credit
Long Term- 4.73 [ICRA]B+ (Stable); ISSUER NOT
Fund Based COOPERATING; Withdrawn
Term Loan
Short Term– (18.00) [ICRA]A4; ISSUER NOT
Interchangeable COOPERATING; Withdrawn
Limits
SMJPL, incorporated in 2006, is primarily involved in the business
of gold jewellery retailing. The company operates with three retail
showrooms in Madurai and Theni with a total showroom area of around
7000 sq. feet. Its product profile includes antiques, traditional,
wedding jewels, bangles, chains, bracelets, rings and earrings.
SHARAVANA TRADERS: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shree
Sharavana Traders (SST) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Buyer Credit Limit 5 CRISIL D (Issuer Not
Cooperating)
Buyer Credit Limit 10 CRISIL D (Issuer Not
Cooperating)
Cash Credit 25 CRISIL D (Issuer Not
Cooperating)
Cash Credit 10 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SST for
obtaining information through letters and emails dated November 24,
2022 and January 16, 2023 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SST, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SST
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SST continues to be 'CRISIL D Issuer Not Cooperating'.
SST, set up in 1980 as a partnership firm, mills and processes
paddy into rice, rice bran, broken rice, and husk. The firm also
processes and trades in imported pulses. The operations are managed
by Mr. R Singaravel and Mr. S Surulivel.
V.M. BAKERY: ICRA Keeps D Ratings in Not Cooperating Category
-------------------------------------------------------------
ICRA has retained the rating for the bank facilities of V.M. Bakery
Products Private Limited in the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 5.40 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term– 2.80 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long Term- 2.00 [ICRA]D; ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain under
'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in 2012, VM Bakery Products Private Limited (VMBPPL)
is into the business of manufacturing of bakery products such as
biscuits (~60% of top line in FY2017), cookies (~30% of top line in
FY2017) and other bakery products like rusks and cakes. Company has
its manufacturing facility at Vijayawada, Andhra Pradesh. VMBPPL
commenced commercial operation in April 2016 and is selling its
product under the brand name "Just Breads". Mr. C. Vinay Kumar, the
managing director, has a decade long experience in the bakery
business.
=========
J A P A N
=========
TOKYO ELECTRIC: To Get JPY400-Billion Bailout from Group of Banks
-----------------------------------------------------------------
The Asahi Shimbun reports that about 10 financial institutions have
agreed to grant a JPY400-billion ($3 billion) emergency loan to
Tokyo Electric Power Company Holdings Inc., whose business
performance has worsened because of rising fuel prices and the
weakened yen.
The Asahi Shimbun relates that the group, which includes the
Development Bank of Japan Inc., Sumitomo Mitsui Banking Corp.,
Mizuho Bank Ltd. and Nippon Life Insurance Co., will grant the
massive loan to TEPCO as early as April, sources said.
According to the sources, the DBJ will loan about JPY90 billion,
while others are expected to provide several tens of billions of
yen.
The sources said TEPCO demanded the funds as it flashed red flags
over its finances, The Asahi Shimbun relays.
In January, TEPCO released an estimate that the company's bottom
line for the business year ending in March 2023 will be a deficit
of JPY317 billion, the report discloses.
The report says the company has struggled with electric power sales
over the past year.
According to The Asahi Shimbun, the debts of its sales subsidiary
TEPCO Energy Partner Inc. temporarily exceeded its assets. Because
of that, the subsidiary implemented a capital increase of JPY200
billion in October 2022.
It also conducted an additional capital increase of JPY300 billion
in January this year.
In both of the capital injections, TEPCO purchased new shares
issued in a third-party allocation format, the report states.
The company is expected to significantly hike electricity rates to
help improve its precarious situation, but it wants to improve its
cash management with the funds it receives from the 10 financial
establishments, adds The Asahi Shimbun.
Tokyo Electric Power Co. Holdings, Inc. engages in the generation
and distribution of electric power. It operates through the
following segments: Fuel, Power Grid, Customer Support, Corporate,
and Others.
=====================
N E W Z E A L A N D
=====================
ATTITUDE FOODS: Court to Hear Wind-Up Petition on April 4
---------------------------------------------------------
A petition to wind up the operations of Attitude Foods (2018)
Limited will be heard before the High Court of Singapore on April
4, 2023, at 10:45 a.m.
Nutra Foods 2011 Limited filed the petition against the company on
Nov. 15, 2022.
The Petitioner's solicitor is:
James Cameron Caird
Simpson Grierson, Solicitors
Level 27, 88 Shortland Street
Auckland
HERKT BROZ: Khov Jones Appointed as Receivers
---------------------------------------------
Steven Khov and Kieran Jones of Khov Jones Limited were appointed
as joint and several receivers of Herkt Broz Limited on Feb. 17,
2023.
The receivers may be reached at:
Khov Jones Limited
PO Box 302261
North Harbour
Auckland 0751
NANDRO INVESTMENT: Court to Hear Wind-Up Petition on April 4
------------------------------------------------------------
A petition to wind up the operations of Nandro Investment Limited
will be heard before the High Court of Singapore on April 4, 2023,
at 10:45 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Sept. 9, 2022.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way, Manukau City
Auckland 2104
PARADISE COATINGS: Creditors' Proofs of Debt Due on March 20
------------------------------------------------------------
Creditors of Paradise Coatings Limited are required to file their
proofs of debt by March 20, 2023, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Feb. 20, 2023.
The company's liquidators are:
Rhys Cain
Larissa Logan
EY
PO Box 2091
Level 4
93 Cambridge Terrace
Christchurch
SATORI HOLDINGS: Creditors' Proofs of Debt Due on March 17
----------------------------------------------------------
Creditors of Satori Holdings Limited are required to file their
proofs of debt by March 17, 2023, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Feb. 17, 2023.
The company's liquidators are:
Mark Terence McDonald
Raymond Paul Cox
Grant Thornton New Zealand Limited
PO Box 1961
Auckland
===============
P A K I S T A N
===============
PAKISTAN: Nears IMF Bailout Pact After Tax Plan Approved
--------------------------------------------------------
Bloomberg News reports that Pakistan is inching closer to reviving
a $6.5 billion bailout from the International Monetary Fund after
the parliament approved on Feb. 20 the plan to roll out higher
taxes.
Bloomberg relates that an agreement is expected to be finalized
within three days after most issues were resolved, ARY News
reported, citing Hamed Yaqoob Sheikh, secretary at the finance
ministry. A bill that will increase the general levy to 18% from
17% and boost tax on imports of luxury items such as mobile phones
to 25% from 17% was approved by the parliament, Bloomberg says.
According to Bloomberg, the government had raised energy prices and
let the currency weaken after the IMF called on Pakistan to scrap
subsidies and enable a market-determined exchange rate. Although
almost all conditions have been met, a key item that remains is
further tightening of monetary policy, said Zubair Ghulam Hussain,
chief executive officer at Insight Securities Pvt.
State Bank of Pakistan has raised the benchmark rate by 725 basis
points since the start of 2022 to contain inflation that quickened
to a 48-year high in January. SBP is scheduled to hold its next
policy review on March 16, Bloomberg discloses.
Bloomberg notes that Pakistan’s inflation is poised to leap above
30% for the first time on record as soon as February. Supply
disruptions caused by flooding, and food shortages due to a
scarcity of dollars to pay for sufficient imports have driven up
prices. Now, steps the government has taken to fulfill IMF aid
terms are about to hit consumer prices with full force.
About Pakistan
Pakistan is a country located in South Asia. It has a coastline
along the Arabia Sea and the Gulf of Oman and is bordered by
Afghanistan, China, India, and Iran. Pakistan's capital is
Islamabad.
As reported in the Troubled Company Reporter-Asia Pacific on Feb.
20, 2023, Fitch Ratings has downgraded Pakistan's Long-Term
Foreign-Currency Issuer Default Rating (IDR) to 'CCC-', from
'CCC+'. There is no Outlook assigned, as Fitch typically does not
assign Outlooks to ratings of 'CCC+' or below.
According to Fitch Ratings, the downgrade reflects further sharp
deterioration in external liquidity and funding conditions, and the
decline of foreign-exchange (FX) reserves to critically low levels.
While Fitch assumes a successful conclusion of the 9th review of
Pakistan's IMF programme, the downgrade also reflects large risks
to continued programme performance and funding, including in the
run-up to this year's elections. Default or debt restructuring is
an increasingly real possibility, in its view.
The TCR-AP reported in December 2022, that S&P Global Ratings
lowered its long-term sovereign credit rating on Pakistan to 'CCC+'
from 'B-', and the short-term rating to 'C' from 'B'. The outlook
on the long-term rating is stable. S&P also lowered its long-term
issue rating on Pakistan's senior unsecured notes to 'CCC+' from
'B-'.
=====================
P H I L I P P I N E S
=====================
CEMEX HOLDINGS: Neutral on PHP2.1BB Tender Offer to Shareholders
----------------------------------------------------------------
Bilyonaryo.com reports that Cemex Holdings Philippines (CHP) board
remains impartial on its plans to purchase up to 12% of the
public-owned shares of the loss-making cement company.
Bilyonaryo.com relates that the board, in a disclosure, stated that
it "expresses no opinion and is neutral towards the tender offer."
According to the report, CHP said shareholders' decision to avail
of the tender offer is a personal investment choice based on their
individual circumstances.
CHP's majority owner, Cemex Asian South East Corp. (CASEC), has
proposed to buy up to 1.614 billion shares at PHP1.30 per share, a
significant drop of 88% from its initial public offering (IPO)
price six and a half years ago.
The purchase will increase CASEC's holdings in CHP to 89.9%,
enabling the company to remain listed on the Philippine Stock
Exchange with a minimum 10% public float, the report notes.
Despite its loss of PHP1 billion, which its president and CEO Luis
Franco attributed to a weak market and "unprecedented cost
increases due to economic and political uncertainty,"
Mr. Franco expects things to get worse as "market conditions and
cost inflation will remain challenging through the first half of
the year."
Bilyonaryo.com reported in December last year that BDO Unibank
chaired by ultra bilyonaryo Tessie Sy has granted a much needed
two-year loan reprieve to the company.
CHP announced on Dec. 27, 2022, that BDO has agreed to waive the
firm's compliance with its covenants to the $280 million it
borrowed in 2017, the report recalls.
Bilyonaryo.com adds that BDO has relaxed the financial requirements
to the loan from Dec. 31, 2022 to December 2024. The financial
covenant covers CHP's commitment to maintain its debt at no more
than four times its EBITDA (earnings before interest, taxes,
depreciation and amortization); and its EBITDA would not fall below
four times its interest expense.
Cemex Holdings Philippines, Inc. engages in the production,
distribution, marketing, and sale of cement, ready mix concrete,
and other construction materials. It offers gray Portland cement,
housings, masonry or mortar cement, and pavements.
=================
S I N G A P O R E
=================
ASIAN ENGINEERING: Members' Final Meeting Set for March 24
----------------------------------------------------------
Members of Asian Engineering Contractors Pte. Ltd. will hold their
final general meeting on March 24, 2023, at 9:30 a.m., via via
Zoom.
At the meeting, Low Sok Lee Mona and Teo Chai Choo, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
EDREI AGILITY: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Singapore entered an order on Feb. 17, 2023, to
wind up the operations of Edrei Agility Solutions (Pte. Ltd.).
Maybank Singapore Limited filed the petition against the company.
The company's liquidator is:
Gary Loh Weng Fatt
c/o BDO Advisory Pte. Ltd.
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
SEA SWIFT: Commences Wind-Up Proceedings
----------------------------------------
Members of Sea Swift International Services Pte Ltd, on Feb. 16,
2023, passed a resolution to voluntarily wind up the company's
operations.
The company's liquidator is Henny Francisco of Primacy Partners
Pte. Ltd.
WILMAR CHINA: Member's Final Meetings Set for March 20
------------------------------------------------------
A final meeting of the sole member of Wilmar China Investments
(Yihai) Pte. Ltd. and Wilmar China Investments Pte Ltd, will be
held on March 20, 2023, at 11:00 a.m. and 11:30 a.m., respectively
at 28 Biopolis Road, Wilmar International, in Singapore.
At the meeting, Liew Khee Soon, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
WILMAR YIHAI: Member's Final Meetings Set for March 20
------------------------------------------------------
A final meeting of the sole member of Wilmar Yihai China Holdings
Pte. Ltd. and Wilmar Yihai Investments Pte Ltd, will be held on
March 20, 2023, at 2:00 p.m. and 2:30 p.m., respectively at 28
Biopolis Road, Wilmar International, in Singapore.
At the meeting, Liew Khee Soon, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
=====================
S O U T H K O R E A
=====================
SK BIOPHARMA: Struggles to Stay Afloat Amid Plunge in Profits
-------------------------------------------------------------
The Korea Times reports that SK Biopharmaceuticals, the drug
manufacturing affiliate of SK Group, is struggling despite brisk
sales of its epilepsy drug cenobamate, data showed on Feb. 20.
The epilepsy drug sold under the brand names Xcopri in the U.S. and
Ontozry in the European Union, is a medication used to treat the
partial-onset of seizures in adults.
Its sales came to KRW246.2 billion ($190 million) last year, down
41.2 percent from a year earlier. It registered operating losses
and net losses of KRW131.1 billion and KRW139.4 billion,
respectively, the report discloses.
The poor performance was not in any way mitigated by the success of
cenobamate in the U.S., where its sales more than doubled to
KRW169.2 billion, the report notes.
The Korea Times says central to the decrease in its operating
profit was the dwindling profits from cenobamate's global
technology exports.
According to the report, the company will not be able to turn
around its performance before the fourth quarter, mostly due to the
delay, of a couple months, before income from U.S. sales and
royalties are factored in.
The SK affiliate plans to achieve U.S. cenobamate sales of up to
300 billion won this year. Incomes from other drugs will come to at
least KRW60 billion.
The epilepsy drug will be released in eight more European
countries, pushing up the total to 23 there.
Earlier, SK biopharm said that it aims to become a global
healthcare firm, as propelled by key growth strategies, including
accelerating growth of cenobamate in the U.S. and expanding its
presence on the global stage and innovation of its research and
development (R&D) platforms, the report relays.
Korea Investment & Securities report said the share price of SK
biopharmaceuticals will gradually soar to KRW105,000, on the growth
outlook in the fourth quarter.
"The recent poor performance will see a recovery throughout 2032,"
it said, notes the report. Its share price closed at KRW68,200, up
2.87% from the previous day.
SK Biopharmaceuticals Co., Ltd. researches and develops new drugs.
The Company develops and markets brain disorders treatment drugs,
central nervous system disorders treatment drugs, and other
products. SK Biopharmaceuticals markets its products worldwide.
*********
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 ***