/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/230816.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, August 16, 2023, Vol. 26, No. 164 Headlines A U S T R A L I A GOOD LUCK: First Creditors' Meeting Set for Aug. 21 HERITAGE WINDOW: First Creditors' Meeting Set for Aug. 21 HILLS LIMITED: Creditors Accept Starplex International's DOCA PLE CONSULTING: Second Creditors' Meeting Set for Aug. 22 TOPLACE PTY: Unit Owes AUD25 Million to ATO, Administrator Finds TRADEMARK JOINERY: First Creditors' Meeting Set for Aug. 21 TROJAN ASSET: Second Creditors' Meeting Set for Aug. 21 C H I N A CHINA EVERGRANDE: Unit Gets Cash Lifeline from UAE Investor IDEANOMICS INC: Raises Going Concern Doubt as Cash Crunch Looms IQIYI INC: VR Unit Fails to Pay Staff, Slashes Jobs JIMO TOURISM: Fitch Lowers LongTerm IDRs to 'BB+'; Outlook Stable JIMO URBAN: Fitch Lowers Long Term IDRs & Unsecured Notes to 'BB+' YUNNAN PROVINCIAL: Fitch Affirms 'BB+' Rating on $150MM Securities I N D I A 5 CORE: CRISIL Keeps D Debt Ratings in Not Cooperating Category AASHIRWAD INDUSTRIES: CRISIL Moves C Ratings to Not Cooperating AJANTA INDUSTRIES: CRISIL Keeps D Debt Ratings in Not Cooperating ANGIKA DEVELOPMENT: CRISIL Keeps D Ratings in Not Cooperating ASHUTOSH FOODS: CRISIL Keeps D Debt Ratings in Not Cooperating BANSI MALL: CRISIL Keeps D Debt Ratings in Not Cooperating CHANDNI COMMERCIALS: Insolvency Resolution Process Case Summary ESSAL INFRASTRUCTURE: CRISIL Keeps D Ratings in Not Cooperating ESSEM ENTERPRISE: CRISIL Keeps D Debt Ratings in Not Cooperating ETERNAL MOTORS: CRISIL Keeps D Debt Ratings in Not Cooperating GANESA HITECH: CRISIL Keeps D Debt Ratings in Not Cooperating GANESA MODERN: CRISIL Keeps D Debt Ratings in Not Cooperating GEETAMPURA PORT: Insolvency Resolution Process Case Summary GO FIRST: Deutsche Bank's Go Airlines Loans Settled Out of Court GOLDEN SHELTERS: CRISIL Keeps D Debt Ratings in Not Cooperating GOYAL ENERGY: CRISIL Lowers Rating on LT/ST Debts to D ILP 3 INDIA: Voluntary Liquidation Process Case Summary INDOTECH INDUSTRIAL: Insolvency Resolution Process Case Summary KANVA FASHIONS: Insolvency Resolution Process Case Summary LEMON ELECTRONICS: CRISIL Keeps D Debt Ratings in Not Cooperating P. C. I. CABLES: CRISIL Withdraws B Rating on INR6cr Cash Loan RAIPUR POLYMERS: CRISIL Keeps D Debt Ratings in Not Cooperating RAJIB CASHEW: CRISIL Lowers Rating on INR9cr Cash Loan to D REENA TINAAZ: CRISIL Keeps D Debt Ratings in Not Cooperating RITISHA OILS: CRISIL Keeps D Debt Ratings in Not Cooperating SAHELI EXPORTS: Liquidation Process Case Summary SREI GROUP: NARCL Likely to Wind Up Equipment Finance Arm SURYA AGRO: CRISIL Moves B- Debt Ratings to Not Cooperating TEXPLAST INDUSTRIES: Insolvency Resolution Process Case Summary TOP BUILDERS: Kreston John & Gan Steps Down as Auditor VEERGANAPATHI STEELS: CRISIL Keeps D Rating in Not Cooperating VISHAAL PROMOTERS: CRISIL Withdraws B- Rating on INR35cr Loan I N D O N E S I A AGUNG PODOMORO: Fitch Cuts IDR to 'RD' on Distressed Debt Exchange N E W Z E A L A N D CUZZIN TRANSPORT: Grant Bruce Reynolds Appointed as Liquidator HOMESTEAD LIMITED: Court to Hear Wind-Up Petition on Sept. 1 SINCERE FUNERAL: Creditors' Proofs of Debt Due on Sept. 7 SPEAKEASY HOLDINGS: Court to Hear Wind-Up Petition on Sept. 1 SUSTAINABLE FARMING: Creditors' Proofs of Debt Due on Sept. 9 VAC GROUP: Liquidators Look at Two Potential Voidable Transactions S I N G A P O R E APEX FUTURE: Court to Hear Wind-Up Petition on Aug. 25 DASIN RETAIL: Gets Notice of Default for SGD430MM Loan Facility SYNERGY-BIZ PTE: Court to Hear Wind-Up Petition on Aug. 25 THEMIS ALLIANCE: Court to Hear Wind-Up Petition on Sept. 1 THREE ARROWS: Co-Founder Says Bankruptcy Court Can't Sanction Him TOMHOUSE PTE: Court to Hear Wind-Up Petition on Aug. 25 VSG PTE: Commences Wind-Up Proceedings T H A I L A N D RISLAND (THAILAND): Fitch Cuts Gtd. Debentures Rating to 'CC(tha)' - - - - - ================= A U S T R A L I A ================= GOOD LUCK: First Creditors' Meeting Set for Aug. 21 --------------------------------------------------- A first meeting of the creditors in the proceedings of Good Luck Sydney Pty Ltd will be held on Aug. 21, 2023, at 12:00 p.m. at Suite 5.05, Level 5, 377 Sussex Street and Sydney and via Zoom virtual meeting. Danny Vrkic and Daniel O'Brien of DV Recovery Management were appointed as administrators of the company on Aug. 9, 2023. HERITAGE WINDOW: First Creditors' Meeting Set for Aug. 21 --------------------------------------------------------- A first meeting of the creditors in the proceedings of Heritage Window Specialists Pty Ltd will be held on Aug. 21, 2023, at 11:00 a.m. via virtual meeting technology only. Sule Arnautovic and John Vouris of Hall Chadwick were appointed as administrators of the company on Aug. 9, 2023. HILLS LIMITED: Creditors Accept Starplex International's DOCA ------------------------------------------------------------- Business News Australia reports that creditors have voted to save Hills Limited from falling into the hands of liquidators after agreeing to a deed of company arrangement (DOCA) as administrators run their eyes over offers to buy the business as a going concern. In an announcement to the ASX on Aug. 8, administrators Sule Arnautovic and John Vouris of Hall Chadwick Chartered Accountants revealed that the company's creditors on Aug. 7 voted to accept the DOCA proposed by Starplex International, a decision that leaves nothing for existing Hills shareholders, BNA relates. The DOCA was accepted by creditors after they were told they would receive 68.39 cents in the dollar for the debts owed to them. Starplex is a related party of the company's largest unsecured creditor, Stellar Vision Operations, with the DOCA set to hand control of the business to Starplex. Hills, which no longer has any association with the clothes hoist that became a backyard staple in suburbia during the post-war era, is a provider B2B solutions in the building technologies sector and it was placed into administration in June. The administration comes on the heels of a AUD5.48 million loss, plus costs, in the Court of Appeal by Hills' health division the previous following a long-standing legal action brought by Stellar Vision Operations, BNA notes. Stellar is listed as an unsecured creditor owed AUD8.4 million out of a total of AUD10.9 million in claims by unsecured creditors. Prior to calling administrators, Hills revealed it had been engaged in ongoing negotiations to settle the claim with Stellar and its financier, with the court loss said to have had a 'significant impact on the company's financial condition,' according to BNA. However, the administrators have revealed that Hills was not operating while in solvent when they were appointed with the business continuing to operate under their control. They also revealed their investigations showed the company had a net surplus of assets over liabilities, BNA states. Hills has unrecognised tax losses of AUD257.78 million, which could be viewed as valuable in a sale process. "Our preliminary investigations into the affairs of the company indicate that the primary reason for the appointment of administrators was due to the (company's) inability to enter a settlement agreement with Stellar regarding the judgement debt owed," the administrators' report revealed last month, BNA relays. "If this judgement had been enforced, the (company) would likely be facing financial difficulties." The settlement negotiations with Stellar were triggered after Stellar successfully appealed the Supreme Court's dismissal of an earlier claim against Hills Health Solutions. The Court of Appeal overturned the finding in early 2022 that Hills Health had not 'breached express trust, fiduciary obligations, and contract when it appropriated to itself the benefit of a contract for supply of entertainment systems to hospital patients'. BNA meanwhile reports that the administrators received 51 expressions of interest for the purchase of the Hills business as part of the DOCA process. The administrators have shortlisted seven parties from 13 non-binding offers they received. They said none of the sale offers would have provided a return to creditors greater than that proposed by Starplex's DOCA proposal, BNA relates. Hills Limited (ASX:HIL) -- https://corporate.hills.com.au/ -- is a majority Australian-owned company that designs, develops, distributes, installs and manages integrated health technology solutions in homes, hospitals, aged care facilities and other health settings across Australia and New Zealand. PLE CONSULTING: Second Creditors' Meeting Set for Aug. 22 --------------------------------------------------------- A second meeting of creditors in the proceedings of PLE Consulting Pty Ltd has been set for Aug. 22, 2023 at 2:00 p.m. at the offices of JLA Insolvency & Advisory at Level 13, 50 Margaret Street in Sydney. 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 Aug. 21, 2023 at 4:00 p.m. Jamieson Louttit of JLA Insolvency & Advisory was appointed as administrator of the company on July 18, 2023. TOPLACE PTY: Unit Owes AUD25 Million to ATO, Administrator Finds ---------------------------------------------------------------- ABC News reports that a report has found a subsidiary of property developer Toplace, failed to pay AUD25 million it owed to the Australian Tax Office (ATO) in 2022 and claims there's little chance of those funds being recovered. The first of three administrators jointly investigating the collapse of the Toplace property empire delivered its report to affected creditors last week, the ABC says. Toplace has built several apartment towers across Sydney which have serious structural defects and the company was placed into voluntary administration last month. According to the ABC, NSW Police has issued a warrant for Toplace director Jean Nassif's arrest over alleged fraud offences and he's believed to be overseas, likely in rural Lebanon. Administrator Michael Hogan, from HoganSprowles, was appointed to investigate one of Toplace's 65 subsidiaries, known as JKN Central Pty Ltd, the ABC reports. JKN is Jean Khazan Nassif's initials and he is the sole director of JKN Central Pty Ltd. Mr. Hogan has produced a report which claims JKN Central Pty Ltd became insolvent two years ago. Registered in March 2015, the report said that by April of that year, the company had bought properties in Clyde in Western Sydney for AUD65 million. It sold the properties, the report said, for AUD140 million in 2021. The ABC relates that the report said the sale generated a net capital gain of AUD53 million, and alleged JKN Central Pty Ltd failed to lodge its 2022 tax return, owing AUD25 million to the ATO. The administrator of parent company Toplace - called dVT Group - has rejected the allegation, the ABC relays. In a statement to the ABC it said its records "do not reflect any capital gains tax (CGT) owing". "The amount owing, if any, will be investigated in the course of the voluntary administration." Mr. Hogan claimed Toplace executives had not given him access to some requested financial records and alleged Mr Nassif failed to give a reason why the subsidiary failed. "My investigations into the affairs of the company have been hindered by the limited books and records available to me," the ABC quotes Mr. Hogan as saying. "I have insufficient information at this point to comment on the reasons of failure [of JKN Central Pty Ltd]. "He said it appeared as though the books and records hadn't been maintained and based on his preliminary investigations "there is no likelihood of a dividend to creditors". In the report, Mr. Hogan recommended JKN Central Pty Ltd be placed into liquidation, the ABC relays. "There is no likelihood of return to any class of creditors at this stage," he wrote. "However, my investigations are continuing and further updates will be provided in my subsequent reports should the company be placed into liquidation." TRADEMARK JOINERY: First Creditors' Meeting Set for Aug. 21 ----------------------------------------------------------- A first meeting of the creditors in the proceedings of Trademark Joinery Pty Ltd will be held on Aug. 21, 2023, at 10:30 a.m. at the offices of Worrells at Level 2, AMP Building 1 Hobart Place in Canberra ACT. Stephen John Hundy of Worrells was appointed as administrator of the company on Aug. 9, 2023. TROJAN ASSET: Second Creditors' Meeting Set for Aug. 21 ------------------------------------------------------- A second meeting of creditors in the proceedings of Trojan Asset Management Pty Ltd has been set for Aug. 21, 2023 at 4:00 p.m. via Zoom teleconference facility. 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 Aug. 18, 2023 at 4:00 p.m. Richard Rohrt of Kennedy Ryan Advisory was appointed as administrator of the company on July 17, 2023. ========= C H I N A ========= CHINA EVERGRANDE: Unit Gets Cash Lifeline from UAE Investor ----------------------------------------------------------- Yicai Global reports that China Evergrande Group said new energy vehicle arm Evergrande NEV has secured new funding from a United Arab Emirates green mobility solution provider that will help the loss-making firm start producing electric cars again. Yicai relates that NWTN, which is backed by the Abu Dhabi Investment Authority, will pay USD500 million for 27.5 percent of Evergrande NEV's total share capital and the right to nominate a majority of representatives onto the carmaker's board, the Dubai-based firm said. A subsidiary of NWTN has also agreed to extend CNY600 million (USD82.4 million) of guaranteed interest-free loans in three tranches to Evergrande NEV for the research and development, production and sales of automobiles, Yicai relays. According to Yicai, the funds will be transferred within five working days after the announcement and will be used used to restore production at Evergrande NEV's Tianjin plant. This will be a huge boon to Evergrande NEV, which has only delivered 900 of its Hengchi 5 EVs so far, and was forced to halt production in April when it ran out of funds. It still has two models, the Hengchi 6 and 7, that have yet to start mass production. Yicai says the investment paves the way for NWTN to hold a majority stake in the carmaker and to become the largest shareholder of the concerted action group. Evergrande NEV still needs to repay its parent firm HKD13.8 billion (USD1.8 billion) in loans and HKD2.3 billion (USD300 million) in interest. It has also borrowed HKD2.6 billion from two other investors that will be converted into company shares. Once these transactions are complete, Shenzhen-based Evergrande's stake will be diluted to 21.7 percent and NWTN will become the controlling shareholder, the report notes. NWTN was originally an electric car firm called Iconiq that was set up in Tianjin by entrepreneur Wu Nan. The firm, in which Wu still holds 77 percent voting rights, has a vehicle assembly plant in Abu Dhabi and an auto parts factory in Jinhua, eastern Zhejiang province. NWTN will help Evergrande NEV expand its footprint overseas and to sell between 30,000 to 50,000 autos a year in the Middle East, Evergrande NEV said, Yicai relays. The tie-up will create great synergy between the companies as well as boost the R&D and mass production of new car models, said NWTN. About China Evergrande China Evergrande Group is an integrated residential property developer. The Company, through its subsidiaries, operates in property development, investment, management, finance, internet, health, culture, and tourism markets. Evergrande had CNY1.97 trillion (US$311 billion) of liabilities at the end of June 2021. Once China's biggest developer by sales, Evergrande fell into distress as cash dried up and the group overstretched itself on borrowings and ventures into car manufacturing. Evergrande hired outside financial advisers Houlihan Lokey and Admiralty Harbour Capital in September 2021 to engage with creditors soon after it ran into a liquidity squeeze. It has since worked with more advisers in the past two months by turning to China International Capital Corp, BOCI Asia and Zhong Lun Law Firm on its debt workout plan. As reported in the Troubled Company Reporter-Asia Pacific in October 2022, Moody's Investors Service has withdrawn China Evergrande Group's (Evergrande) corporate family rating and senior unsecured ratings, the CFRs of Hengda Real Estate Group Company Limited and Tianji Holding Limited, and Scenery Journey Limited's backed senior unsecured ratings. IDEANOMICS INC: Raises Going Concern Doubt as Cash Crunch Looms --------------------------------------------------------------- "We believe substantial doubt exists about the Company's ability to continue as a going concern for twelve months from [August 4, 2023]," Ideanomics, Inc. said in its Form 10-Q Report filed with the Securities and Exchange Commission for the quarterly period ended March 31, 2023, filed on August 4. "We currently do not have adequate cash to meet our short or long-term needs. In the event additional capital is raised, it may have a dilutive effect on our existing stockholders," the Company added. As of March 31, 2023, the Company had cash and cash equivalents of approximately $18.9 million, of which $15.0 million is held in China and is subject to local foreign exchange regulations in that country. The company has initiated a formal process to repatriate these cash funds located in China and as of August 4 has successfully repatriated $7.0 million. This process is not subject to local foreign exchange regulations rather is subject to the other administrative regulatory applications and approvals. The Company also had accounts payable and accrued expenses of $75.6 million, other current liabilities of $15.2 million, operating lease payments due within the next twelve months of $4.0 million, and payments of short-term and long-term debt due within the next twelve months of $9.9 million. The Company had a net loss of $84.3 million for the quarter ended March 31, 2023, and an accumulated deficit of $951.1 million. The Company believes that its current level of cash and cash equivalents are not sufficient to fund continuing operations, including VIA, which acquisition was closed by the company on January 31, 2023. The Company will need to bring in new capital to support its growth and, as evidenced from its successful capital raising activities in 2022 and 2021, believes it has the ability to continue to do so. However, there can be no assurance that this will occur. The Company has no remaining available and committed equity funding vehicles. "As our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 was not filed timely, we will not be Form S-3 eligible until August 4, 2024, which could make fund raising more difficult or more expensive," the Company revealed. "Management continues to seek to raise additional funds through the issuance of equity, mezzanine or debt securities. As we seek additional sources of financing, there can be no assurance that such financing would be available to us on favorable terms or at all. Our ability to obtain additional financing in the debt and equity capital markets is subject to several factors, including market and economic conditions, our performance and investor sentiment with respect to us and our business and industry. These factors individually and collectively raise doubt about the Company's ability to continue as a going concern. In addition, our independent auditors have included in their report on our financial statements for the year ended December 31, 2022, an paragraph related to the existence of substantial doubt about our ability to continue as a going concern." The Company has continued to incur net losses and negative cash flows from operating and investing activities in the quarter ended March 31, 2023, consistent with its business plan for ongoing activities. Securing additional financing is in progress, and as such management's actions to preserve an adequate level of liquidity for a period extending 12 months from August 4, 2023 are no longer sufficient on their own without additional financing, to mitigate the conditions raising substantial doubt about the Company's ability to continue as a going concern. The Company added its ability to raise capital is critical. It has raised approximately $20.3 million, since the beginning of the first quarter 2023, including the sale of preferred shares, issuance of a convertible note, and the sale of shares under the SEPA. In addition, the Company is working to close on multiple term sheets, which if successful, could bring in excess of $50 million in proceeds to the company. Although management continues to raise additional capital through a combination of debt financing, other non-dilutive financing and/or equity financing to supplement the Company's capitalization and liquidity, management cannot conclude as of the date of this filing that its plans are probable of being successfully implemented. During the three months ended March 31, 2023, the Company posted wider net loss of $85,892,000 from a net loss of $29,092,000 for the same period in 2022. A copy of the Quarterly Report is available at https://tinyurl.com/u7j89d2t About Ideanomics, Inc. Through March 31, 2023, New York, N.Y.-based Ideanomics, Inc. operates in one segment with two business units, Ideanomics Mobility and Ideanomics Capital. Ideanomics Mobility will drive EV adoption by offering unique business solutions to commercial customers wanting to adopt EV vehicles and supporting infrastructure. To do that, Ideanomics has assembled, is developing and integrating business components with distinctive competence in three key pillars: Vehicles, Charging and Energy. These three pillars provide the foundation for Ideanomics Mobility's planned offering of unique business solutions such as CaaS and VaaS which are proving to be extremely attractive to both large and small commercial vehicle operations. Ideanomics Capital is the Company's business focused on the financial services. Ideanomics Capital has begun providing a range of financing programs in support of the sale of EVs and associated charging and energy systems by Ideanomics Mobility. It is Ideanomics' intention to focus Ideanomics Capital solely as the financial services arm of Ideanomics Mobility and to divest its other fintech assets accordingly, a process the company began in 2023. As of March 31, 2023, the Company had $316,988,000 in total assets against $212,271,000 in total liabilities. IQIYI INC: VR Unit Fails to Pay Staff, Slashes Jobs --------------------------------------------------- Caixin Global reports that IQiyi Smart, the virtual reality (VR) equipment arm of streaming platform iQiyi Inc., has been delaying salary payments and laying off employees, sources told Caixin, as the startup struggles financially in a sector that has yet to see mainstream adoption. Employees haven't been receiving their full wages since March, with some months seeing no salary payments at all, several staff members told Caixin. The company has also undergone several rounds of downsizing in the past six months, with headcount dropping below 100 as layoffs within some departments reached up to 50%, the sources, as cited by Caixin, said. iQIYI, Inc., together with its subsidiaries, provides online entertainment video services in the People's Republic of China. It offers various products and services, including online video, online games, online literature, animations, and other products. The company operates a platform that provides a collection of internet video content, such as professionally produced content licensed from professional content providers and self-produced content. It also offers membership, online advertising, content distribution, and live broadcasting services. In addition, the company operates iQIYI Show, a live broadcasting platform that enables users to follow their favorite hosts and shows in real time through live broadcasting; and iQIYI Lite, which offers an easy and quick access to the personalized videos based on their user preferences. Further, it is involved in the talent agency and IP licensing activities, as well as engages in developing a video community app. The company was formerly known as Qiyi.com, Inc. and changed its name to iQIYI, Inc. in November 2017. JIMO TOURISM: Fitch Lowers LongTerm IDRs to 'BB+'; Outlook Stable ----------------------------------------------------------------- Fitch Ratings has downgraded Qingdao Jimo District Urban Tourism Development and Investment Co. Ltd.'s (Jimo Tourism) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to 'BB+', from 'BBB-'. The Outlook is Stable. Fitch has also downgraded the ratings on Jimo Tourism's two outstanding senior unsecured US-dollar bonds, which mature in December 2024 and June 2025. The bonds - issued by wholly owned subsidiary, Jingming Yuantong Development Investment (BVI) Co., Ltd - are unconditionally and irrevocably guaranteed by Jimo Tourism. All ratings have been removed from Rating Watch Negative (RWN), on which they were placed on February 21, 2023. The downgrade follows Fitch reassessment that the sponsoring Jimo district government has a lower ability to provide legitimate support to Jimo Tourism, should it be needed. KEY RATING DRIVERS Status, Ownership and Control: 'Very Strong' Jimo Tourism is wholly owned by the Jimo State-owned Assets Operation and Service Centre and, ultimately, by the Jimo district government. The government exercises tight control over Jimo Tourism, as evident by its board appointments and the company's regular performance reports. All major corporate events, including M&As, disposals, strategic development, long-term plans, annual budgets, major capital expenditure and funding plans, require government approval. Support Track Record: 'Strong' Jimo Tourism receives consistent and regular government support in the form of annual operating subsidies, equity injections and asset transfers. Jimo Tourism received CNY1.5 billion in operating subsidies during 2020-2022, which was 1.7x its EBITDA. The government also issued a special bond of CNY1.1 billion to fund the company's infrastructure and construction. Fitch expect such support to continue, given the issuer's government linkage and the works that it undertakes for the government. Nonetheless, the support assessment is constrained by the lack of an explicit government guarantee. Socio-Political Implications of Default: 'Moderate' Jimo Tourism is a core government-related entity (GRE) in the district, providing 90% of local heat supply from November to April each year. It also undertakes key projects, such as water-supply facility upgrades, canal improvement, infrastructure development and weather observatory station construction. These essential public services support the local economy and improve the quality of life for residents. Jimo Tourism's financial distress would disrupt its projects and have economic repercussions. However, there are other local GREs that provide similar services and the company's default would not affect its completed projects. Financial Implications of Default: 'Very Strong' Jimo Tourism is the district's second-largest GRE by assets, a large portion of which relate to public services and infrastructure. The company's financial viability is linked to the local economy, as its projects depend on government repurchases, demand from residents and the availability of skilled workers in the district. Jimo Tourism also has ample funding access, including to onshore debt capital markets and bank financing; hence, its financial distress would be likely to have a contagion effect on the district and its other GREs. Standalone Credit Profile 'b' Standalone Credit Profile: Fitch assess revenue defensibility as 'Midrange', as Jimo Tourism's operations are district-level focused. Operating risk is 'Midrange', as well-identified costs are offset by large capital expenditure and limited flexibility to vary the timing and scale of government-directed projects. The financial profile is 'Weaker', underpinned by high leverage, heavy short- to medium-term capital expenditure and the time taken to recover costs. Fitch estimate net leverage will exceed 30x over the next three to five years. Revenue Defensibility 'Midrange' Operating Risk 'Midrange' Financial Profile 'Weaker' Derivation Summary Jimo Tourism is rated under Fitch's Government-Related Entities Rating Criteria, with an overall support score of 40, reflecting its ownership, control and strong support by the Jimo district government. Fitch also factors in the socio-political and financial implications for the government should the company default and Jimo Tourism's Standalone Credit Profile assessment under Fitch's Public Sector, Revenue-Supported Entities Rating Criteria. Issuer Profile Jimo Tourism was established in 2007 and is one of two major GREs in Jimo district. Its main businesses include heat supply, infrastructure and construction. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade -- A lowering of Fitch's credit view of Jimo district's ability to provide subsidies, grants or other legitimate resources allowed under China's policies and regulations -- A significant weakening of the socio-political or financial implications of a default, a weaker government support record or a dilution of the government's shareholding or control A downgrade of Jimo Tourism's IDRs will result in a similar change in the rating of its notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade -- An upward revision in Fitch's credit view of Jimo district's ability to provide subsidies, grants or other legitimate resources allowed under China's policies and regulations -- A stronger assessment of the government's support record or the socio-political implications of a default An upgrade of Jimo Tourism's IDRs will result in a similar change in the rating of its notes. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. JIMO URBAN: Fitch Lowers Long Term IDRs & Unsecured Notes to 'BB+' ------------------------------------------------------------------ Fitch has downgraded Qingdao Jimo District Urban Development Investment Co.,Ltd.'s (Jimo Urban) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to 'BB+' from 'BBB-'. The Outlook is Stable. Fitch has also downgraded the senior unsecured notes under Jimo Urban to 'BB+' from 'BBB-'. The notes were directly issued by Jimo Urban. All ratings have been removed from Rating Watch Negative (RWN), on which they were placed on February 22, 2023. The downgrade follows Fitch reassessment that the sponsoring Jimo District government has a lower ability to provide legitimate support to Jimo Urban, should it be needed. KEY RATING DRIVERS Status, Ownership and Control: 'Very Strong' Jimo Urban is wholly owned by the Jimo State-owned Assets Operation and Service Centre and, ultimately, by the Jimo District government. The government exercises tight control over Jimo Urban, as evident by its board appointments and the company's regular performance reports. All major corporate events, including M&A, disposals, strategic development, long-term plans, annual budgets, major capex and funding plans, require government approval. Support Track Record: 'Strong' Fitch expects government support for Jimo Urban will continue, although the support assessment in constrained by the lack of an explicit government guarantee. Jimo Urban has received consistent government support in the form of equity stake and asset transfers and annual operational subsidies. Subsidies increased continuously over 2018-2022, totalling CNY612 million. It received a CNY100 million cash capital injection in 2019, CNY500 million in government special bonds in 2020 for public construction, and was granted an exclusive car-parking licence in 2021. Socio-Political Implications of Default: 'Moderate' Jimo Urban is a major urban developer in the district. It builds and operates infrastructure and construction projects as well as social housing. Jimo Urban's financial distress would disrupt its projects and have economic repercussions. However, there are other local government-related entities (GREs) that provide similar services and the company's default would not affect its completed projects. Financial Implications of Default: 'Very Strong' Jimo Urban is the largest GRE that is supervised by the Jimo State-owned Assets Operation and Service Centre. It has diverse funding channels and an established record of capital-market access, as it is an active onshore bond issuer. Jimo Urban raises funds in capital markets for projects tasked by the local government and its default would constrain the financing capacity of other local GREs. Standalone Credit Profile The Standalone Credit Profile (SCP) of 'b' is driven by high leverage, but mitigated by high liquidity, large credit lines and good access to onshore and offshore financing markets. Jimo Urban's SCP reflects a combination of a 'Weaker' assessment for revenue defensibility and 'Midrange' for operating risk, and a 'Weaker' financial profile, which suggests a 'b(cat)' assessment. The notch-specific SCP is mainly driven by the Jimo Urban's abundant liquidity and large credit lines from banks. Revenue Defensibility 'Weaker' Operating Risk 'Midrange' Financial Profile 'Weaker' Derivation Summary Jimo Urban is rated under Fitch's Government-Related Entities Rating Criteria, with an overall support score of 40, reflecting its ownership, control and strong support by the Jimo District government. Fitch also factors in the socio-political and financial implications for the government should the company default and Jimo Urban's SCP assessment under Fitch's Public Sector, Revenue-Supported Entities Rating Criteria. Debt Ratings The debt rating follows the change in the IDRs. Issuer Profile Jimo Urban is Jimo District's largest GRE by assets. It mainly provides social housing, constructs facilities and expedites urbanisation in the district in conjunction with some ancillary services, such as leasing, trading, rental, leisure and hot-water supply. The district is in Qingdao, a city in Shandong province. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade -- A lowering of Fitch's credit view of Jimo District's ability to provide subsidies, grants or other legitimate resources allowed under China's policies and regulations. -- Significant weakening in the financial implications of default, a weaker support record or looser government control. -- A downgrade of Jimo Urban's Long-Term Local-Currency IDR would lead to a similar rating action on the US dollar bonds. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade -- An upward revision in Fitch's credit view of Jimo District's ability to provide subsidies, grants or other legitimate resources allowed under China's policies and regulations -- A stronger assessment of the government's support record or the socio-political implications of a default. -- An upgrade of Jimo Urban's Long-Term Local-Currency IDR would lead to a similar rating action on the US dollar bonds. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. YUNNAN PROVINCIAL: Fitch Affirms 'BB+' Rating on $150MM Securities ------------------------------------------------------------------ Fitch Ratings has revised the Outlook on Yunnan Provincial Energy Investment Group Co., Ltd.'s (YEIG) Long-Term Foreign-Currency Issuer Default Rating (IDR) and that of its subsidiary, Yunnan Energy Investment (HK) Co. Limited (YEIHK), to Stable, from Negative, and has affirmed the ratings at 'BBB-'. Fitch has simultaneously affirmed YEIG's senior unsecured rating and the ratings on its senior unsecured US-dollar notes, which it unconditionally and irrevocably guarantees, at 'BBB-', while the rating on YEIG's USD150 million senior perpetual securities is affirmed at 'BB+'. The notes and securities were issued by YEIG's indirectly wholly owned subsidiary, Yunnan Energy Investment Overseas Finance Company Ltd. The Outlook revision reflects Fitch's lower internal assessment of Yunnan province's creditworthiness, while concurrently raising its assessment of the social-political implications of a default by YEIG to 'Strong', from 'Moderate', under the agency's Government-Related Entities (GRE) Rating Criteria. YEIG is rated using a top-down approach from Fitch's internal assessment of Yunnan province's creditworthiness based on a strong likelihood of state support. YEIG maintained resilient operating and financial performance, despite the province's weakening finances and rising debt levels amid plunging land sales and recurring Covid-19 pandemic-related shocks in 2022. Fitch reassessment of the socio-political implications of default reflects YEIG bearing a greater role in driving Yunnan's renewable energy investments and protecting energy security, with no immediate substitute available should it default. Fitch believe YEIG is also an important vehicle for the government to inject capital into weaker Yunnan GREs via minority investments. Fitch is withdrawing the IDR of YEIHK, as the bonds that the company guaranteed with keepwell deeds provided by YEIG have matured and been repaid. KEY RATING DRIVERS 'Strong' Socio-Political Implications of Default: Fitch believe YEIG's importance to Yunnan's energy transition and ensuring the province's energy security is increasing, despite a low local power-supply market share of 4%-5%. YEIG is mandated to install 20 gigawatts (GW) of solar power by 2025 out of Yunnan's total target of 50GW. YEIG also owns 27% of the province's thermal power plants, which stabilise supply in the province's hydropower-dominant market. The company expects the government's injection of the Xiaolongtan coal mine, which could be completed by the end of 2023, to further enhance its leading position in the local coal market. Fitch believe YEIG is also important to the government's state-owned enterprise (SOE) reform due to its strong financial position among provincial GREs after making a number of minority investments in several GREs and purchasing shares in China Copper. 'Very Strong' Status, Ownership and Control: The Yunnan State-owned Assets Supervision and Administration Commission (SASAC), which owns 85.82% of YEIG through Yunnan Provincial Investment Holdings Group Co. Ltd. (YIG), controls YEIG's strategy and key financial and investment decisions. It also appoints the company's chairperson and senior management. YEIG aligns its strategy and investment with Yunnan's policies by investing in renewable power, salt production, natural gas distribution, coal mining, logistics and in other provincial SOEs. 'Weak' Support Record: The Yunnan government has provided equity and asset injections in the past. However, government support has been insufficient to maintain YEIG's Standalone Credit Profile (SCP) at above 'b-', due to YEIG's policy mandate to invest in local SOEs resulting in large net cash outflows. 'Strong' Financial Implications of Default: YEIG is Yunnan's largest and most prominent GRE offshore bond issuer and enjoys low funding costs. Fitch believe a financial default by YEIG would severely impair debt funding for other provincial SOEs. Renewable Installations Accelerate: YEIG signed agreements with local governments across Yunnan to develop 11.7GW of solar power and 1.4GW of wind power capacity. It installed 430 megawatts (MW) of wind power capacity in 1H23 and has started solar farm construction. Fitch forecast solar installations of 345MW in 2023 and 5GW in 2024. The company is likely to seek minority shareholders or investors for the solar projects to share capex. Fitch believe improved project economics as a result of lower module and equipment prices, falling project-loan interest rates and better negotiated terms with local governments with help from the provincial government are the key reasons for the acceleration of project signing and execution. Strong Demand for Thermal Power: YEIG's power generation rose by 33% yoy in 1H23 to reach 10.5 terawatt-hours (TWh), of which thermal power rose the fastest - by 43% yoy - to reach 7.7TWh. Utilisation of its Honghe thermal power plant reached 4,090 hours, at near full capacity, and YEIG has started construction of phase II of the plant, which will add 700MW of capacity. Fitch expect power-segment profit to rise in 2023 due to higher volume and tariffs along with competitive coal costs. However, profit from silicon products is likely to drop on lower selling prices. SOE Investments a Burden: Fitch believe YEIG's investments in Yunnan-based SOEs are adding to the company's financial burden. YEIG acquired 36% of Yunnan Industrial Investment Holding Group Co.Ltd. (YIIG) for CNY3.7 billion in 2022 and purchased shares in China Copper from YIIG and YIG for CNY6.2 billion in cash. Fitch do not expect dividend income from these investments in the near-term and YEIG's loans to YIG, which is booked as 'other receivables' on its balance sheet, increased by CNY1.1 billion in 2022. SCP Assessed as 'b-': Fitch expect YEIG's weak credit metrics to improve over the medium term. Interest coverage should rise towards 1.5x by 2027 on the potential consolidation of the Xiaolongtan coal mine, after falling to 1.0x-1.1x in 2023 (2022: 1.2x) amid lower prices for coal and silicon products. The improvement should be also supported by the profit contribution from renewable power and lower average funding costs. However, aggressive capex in renewable energy is likely to keep free cash flow at deeply negative levels. DERIVATION SUMMARY YEIG's rating is linked to, but not equalised with, Fitch internal assessment of the creditworthiness of Yunnan province under Fitch GRE criteria. Fitch assessment of 'Very Strong' status, ownership and control can be compared with the 'Strong' assessment for Guangdong Energy Group Co., Ltd. (A/Stable), reflecting a higher degree of government involvement in YEIG's strategy and operations, including more frequent and significant asset restructurings to align YEIG's strategy with the government's agenda. Fitch 'Weak' support record assessment, against 'Strong' for Guangdong Energy, reflects the insufficient government support to compensate for YEIG's cash outflows from its investments in local SOEs. Fitch assessment of 'Strong' socio-political implications of default is in line with that for Guangdong Energy. YEIG has a low share in the local power market, but this is balanced by its important role in driving Yunnan's energy transition as well as shouldering the government's task in funding SOEs. Fitch 'Strong' assessment for the financial implications of default compares with 'Very Strong' for Guangdong Energy, as the latter's funding channels and funding costs are closer to that of the provincial government. Guangdong Energy also has smoother access to debt capital market financing. KEY ASSUMPTIONS Fitch's Key Assumptions Within Fitch Rating Case for the Issuer -- Wind power capacity to reach 3GW and solar power capacity to reach 11GW by 2025 -- Gross profit contribution of around CNY1.0 billion a year from the Xiaolongtan coal mine from 2024 -- Profit from salt and chemicals production to remain flat -- Average funding costs to slightly trend down -- Capex of CNY10 billion in 2023, CNY25 billion in 2024 and CNY23 billion in 2025 to support renewable power development RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- A higher internal assessment of the creditworthiness of Yunnan province -- Stronger likelihood of support from Yunnan province to YEIG Factors that could, individually or collectively, lead to negative rating action/downgrade: -- A lower internal assessment of Yunnan province's creditworthiness -- Sustained deterioration of YEIG's EBITDA interest coverage to below 1.0x -- Weaker likelihood of support from Yunnan province LIQUIDITY AND DEBT STRUCTURE Manageable Liquidity: YEIG had readily available cash of CNY12.0 billion at end-1Q23, against short-term debt of CNY69.2 billion. Fitch expect YEIG to manage its liquidity needs by tapping some of its undrawn bank facilities of CNY53 billion as of end-2022 and refinancing some, if not all, capital market debt. YEIG owns shares of A-share listed companies with a total market value of around CNY67.8 billion, based on end-1Q23 holdings and current share prices, which offer additional financial flexibility. Potential contagion risk for YEIG has reduced after Yunnan SASAC completed the debt restructuring of Yunnan Health and Cultural Tourism Holding Group Co., Ltd. This has stabilised YEIG's access to the domestic bond market, though any credit events among other Yunnan GREs could expose the company to volatility in financing access or raise its funding costs once more. YEIHK has USD150 million in senior unsecured offshore bonds due on August 20, 2023 and another USD150 million in perpetual capital securities that require redemption or face a sharp rise in interest rates. The company also plans to repay its USD300 million in securities with a combination of newly issued USD70 million bonds with a standby letter of credit from Postal Savings Bank of China Co., Ltd. (A+/Stable), proceeds from the redemption of financial products on hand and cash from YEIG's onshore cash pool. SUMMARY OF FINANCIAL ADJUSTMENTS YEIG reports investment income as revenue, as it treats investments as a core business. Fitch adjusted YEIG's 2022 financials by removing CNY7.7 billion in investment gains from revenue and EBITDA and adding this to respective investment income accounts, including income from associate companies and other financial income. YEIG's dividend income of CNY2.9 billion from equity investments in 2022 is included in adjusted EBITDA. The adjustment has resulted in a lower EBITDA compared with YEIG's reporting. ESG CONSIDERATIONS The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. ========= I N D I A ========= 5 CORE: CRISIL Keeps D Debt Ratings in Not Cooperating Category --------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of 5 Core Acoustics Private Limited (5Core; a part of the Five Core group) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bill Discounting 25 CRISIL D (Issuer Not Cooperating) Cash Credit 2 CRISIL D (Issuer Not Cooperating) Packing Credit in Foreign Currency 10 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with 5Core for obtaining information through letter and email dated July 19, 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 5Core, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on 5Core is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of 5Core continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. For arriving at the ratings, CRISIL Ratings has combined the business and financial risk profiles of Five Core Electronics Ltd (FCEL), EMS & Exports (EMS), Indian Acoustics Pvt Ltd (IAPL), Visual and Acoustics Corporation LLP (Visual), Digi Export Ventures Pvt Ltd (Digi), Happy Acoustics Pvt Ltd (Happy), 5Core, and Neha Exports (Neha). This is because all these entities, collectively referred to as the Five Core group, have common management, brand, customers, suppliers, and strong operational synergies. Furthermore, 5Core is a wholly owned subsidiary of FCEL. FCEL is a part of the Five Core group that manufactures electronic equipment, including public address systems, speakers, amplifiers, microphones, woofers; and electrical accessories under the 5 Core brand. The group exports products to 56 countries. Mr Amarjit Kalra and his family manage the operations. Incorporated in 2002, FCEL is listed on the National Stock Exchange Emerge platform since May 2018 and has manufacturing units in Delhi and Bhiwadi (Rajasthan). Set up in 2008 as a partnership firm, EMS has a facility in Kashipur (Uttarakhand). Visual is a limited-liability partnership firm set up in 2008, with a unit in Mundka, Delhi. Neha is a proprietorship firm set up in 2009 and has a unit at Daruhera (Gurugram). Set up in 2010, 2011, and 2012, IAPL, Digi, and Happy are private-limited companies with units in Noida, Bhiwadi, and Delhi, respectively. 5Core was set up in 2012 and has a unit in Bhiwadi. AASHIRWAD INDUSTRIES: CRISIL Moves C Ratings to Not Cooperating --------------------------------------------------------------- CRISIL Ratings has migrated the rating on bank facilities of Aashirwad Industries Private Limited (AIPL) to 'CRISIL C Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL C (ISSUER NOT COOPERATING; Rating Migrated) Funded Interest 0.54 CRISIL C (ISSUER NOT Term Loan COOPERATING; Rating Migrated) Mortgage Loan 1.21 CRISIL C (ISSUER NOT Facility COOPERATING; Rating Migrated) Proposed Long Term 3.8 CRISIL C (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) Term Loan 1.06 CRISIL C (ISSUER NOT COOPERATING; Rating Migrated) Working Capital 5.39 CRISIL C (ISSUER NOT Term Loan COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with AIPL for obtaining information through letter and email dated July 14, 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 AIPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AIPL is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of AIPL to 'CRISIL C Issuer not cooperating'. AIPL (formerly known as R R Tupe Builders Pvt Ltd) was incorporated on July 29, 2004. The company manufactures asbestos sheet at its unit in Butibori Industrial area of Nagpur (Maharashtra) and has installed capacity of 30,000 tonne per annum. It is also engaged in real estate and construction activities. Mr Rahul Tupe and Mr Karan Tupe are the promoters. AJANTA INDUSTRIES: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Ajanta Industries (AI) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8 CRISIL D (Issuer Not Cooperating) Packing Credit 6 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with AI for obtaining information through letter and email dated July 19, 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 AI, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AI is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of AI continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. AI was established in 1982 by Mr A S Kamath as a proprietorship firm. It processes and exports certified organic cashew kernels. The manufacturing facility is in Goa. ANGIKA DEVELOPMENT: CRISIL Keeps D Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Angika Development Society (ADS) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 6.4 CRISIL D (Issuer Not Cooperating) Term Loan 8 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with ADS for obtaining information through letter and email dated July 19, 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 ADS, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on ADS is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of ADS continues to be 'CRISIL D Issuer Not Cooperating'. Established in 2004, ADS manages a DPS franchise school and a teacher training institute, VBCE, in Bhagalpur. The society added one more school in Ranchi, Jharkhand, in 2016 under the DPS brand. Operations are managed by the chairman, Mr Shekhar Dutt (retired Indian Administrative Service officer, former governor of Chhattisgarh, and defense secretary, Government of India), and secretary, Mr Rajesh Kumar Srivastava. ASHUTOSH FOODS: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Ashutosh Foods (AF) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 9 CRISIL D (Issuer Not Cooperating) Cash Credit 35 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with AF for obtaining information through letter and email dated July 28, 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 AF, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AF is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of AF continues to be 'CRISIL D Issuer Not Cooperating'. AF is a partnership firm incorporated in 2004 by Mr. Sushil Kumar and Mr. Ashish Singla. It processes basmati rice for sale in India and abroad. Its plant is in Karnal, Haryana. BANSI MALL: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Bansi Mall Management Company Private Limited (BMMCPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 100 CRISIL D (Issuer Not Cooperating) Long Term Loan 150 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with BMMCPL for obtaining information through letter and email dated July 26, 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 BMMCPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on BMMCPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of BMMCPL continues to be 'CRISIL D Issuer Not Cooperating'. BMMCPL was incorporated in 2005 by the promoters of the Future group to develop and manage SOBO Central Mall (formerly Crossroad Mall) at Haji Ali, in Mumbai. It also acts as a special-purpose vehicle for other companies of the Future group. SOBO Central Mall has total leasable area of 1.5 lakh sq ft, which has been entirely rented out to clients such as Future Consumer Enterprises Ltd (FCEL), FRL and FLFL, with FCEL occupying only 1% of the leasable area. CHANDNI COMMERCIALS: Insolvency Resolution Process Case Summary --------------------------------------------------------------- Debtor: Chandni Commercials Private Limited Landmark, 5th Floor 228A, A.J.C. Bose Road, Kolkata, West Bengali, 700020, India 9 Ezra Street, First Floor, Room No. 23, Kolkata, West Bengal India-700001 Insolvency Commencement Date: July 27, 2023 Estimated date of closure of insolvency resolution process: January 23, 2024 Court: National Company Law Tribunal, Kolkata Bench-II Insolvency Professional: 1ST Floor, 144B Shyama Prasad Mukherjee Road, Post Office Kalighat Near Rash Behari More, Kolkata, West Bengal, 700026 Email: ca.arunpoddar@gmail.com Arun Poddar C/O Ancoraa Resolution Private Limited, 1412, 14th Floor, Real Tech Park, Sector 30A, Vashi, Navi Mumbai-400 703 Email: cirp.chandni@ancoraa.com Last date for submission of claims: August 10, 2023 ESSAL INFRASTRUCTURE: CRISIL Keeps D Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Essal Infrastructure Private Limited (EIPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 12 CRISIL D (Issuer Not Cooperating) Bank Guarantee 5 CRISIL D (Issuer Not Cooperating) Cash Credit 6 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with EIPL for obtaining information through letter and email dated July 19, 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 EIPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on EIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of EIPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. EIPL, based in Raipur (Chhattisgarh), was established in 2004 by Mr. Anand Aggarwal and his father. The company is engaged in civil construction and executes projects for state government authorities such as Naya Raipur Development Authority and Chhattisgarh Housing Board. ESSEM ENTERPRISE: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Essem Enterprise - Kolkata (ESSEM) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 1.43 CRISIL D (Issuer Not Cooperating) Cash Credit 8 CRISIL D (Issuer Not Cooperating) Proposed Long Term 0.57 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with ESSEM for obtaining information through letter and email dated July 19, 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 ESSEM, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on ESSEM is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of ESSEM continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Essem, a Kolkata based proprietorship firm is engaged in civil construction business. Mr. Santanu Mukherjee is the proprietor of the firm. ETERNAL MOTORS: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Eternal Motors Private Limited (EMPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8 CRISIL D (Issuer Not Cooperating) Long Term Loan 1.5 CRISIL D (Issuer Not Cooperating) Long Term Loan 0.45 CRISIL D (Issuer Not Cooperating) Proposed Long Term 0.05 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with EMPL for obtaining information through letter and email dated July 19, 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 EMPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on EMPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of EMPL continues to be 'CRISIL D Issuer Not Cooperating'. EMPL was incorporated in 1998. It is an authorized dealer of Maruti Suzuki India Limited (MSIL) passenger and commercial vehicles. GANESA HITECH: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Ganesa Hitech Agroo Foods (GHAF) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3 CRISIL D (Issuer Not Cooperating) Long Term Loan 3.3 CRISIL D (Issuer Not Cooperating) Proposed Working 3.7 CRISIL D (Issuer Not Capital Facility Cooperating) CRISIL Ratings has been consistently following up with GHAF for obtaining information through letter and email dated July 19, 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 GHAF, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GHAF is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of GHAF continues to be 'CRISIL D Issuer Not Cooperating'. GHAF was set up as a partnership firm in December 2014 in Salem. The firm mills and processes paddy into rice, rice bran, broken rice and husk. Its operations are managed by its partner Mr P Madheswaran. GANESA MODERN: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Ganesa Modern Rice Mill (GMRM) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 10 CRISIL D (Issuer Not Cooperating) Cash Credit 2.9 CRISIL D (Issuer Not Cooperating) Long Term Bank Facility 0.72 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with GMRM for obtaining information through letter and email dated July 19, 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 GMRM, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GMRM is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of GMRM continues to be 'CRISIL D Issuer Not Cooperating'. Set up in 1976, GMRM is engaged in milling and processing of paddy into rice, rice bran, broken rice and husk. Its rice mill is located at Attur (Tamil Nadu). The firm is promoted by Mr. P. Madheswaran. GEETAMPURA PORT: Insolvency Resolution Process Case Summary ----------------------------------------------------------- Debtor: Geetampura Port Services Limited Office No. 219, Vardhaman Chambers Sector 17, Plot No. 84 Vashi, Navi Mumbai, Mumbai Insolvency Commencement Date: July 27, 2023 Estimated date of closure of insolvency resolution process: January 23, 2024 Court: National Company Law Tribunal, Navi Mumbai Bench Insolvency Professional: Padma Ganesh C1-1503, Integrated Kamal, Hira Nagar, Goregaon Mulund Link Road, Mulund West, Mumbai Suburban, Maharashtra – 400 080 Email: padmaganeshandco@gmail.com c/o-M/s Brahmayya & Co., Ground Floor, DLF Plaza Tower, Qutub Enclave, Block B, Sector 26 A, Gurgaon- 122 002 Email: ip.geetapuram@gmail.com Last date for submission of claims: August 10, 2023 GO FIRST: Deutsche Bank's Go Airlines Loans Settled Out of Court ---------------------------------------------------------------- The Economic Times reports that Deutsche Bank has settled the loans it extended to Go Airlines out of court with its promoters Wadia Group, people aware of the development said. Go Airlines, which operated Go First Airlines, is undergoing voluntary liquidation. Last week, Deutsche Bank conveyed to its resolution professional Shailendra Ajmera and lenders that it wants to relinquish itself as a member of the committee of creditors (CoC) since it has separately settled its debt with the promoter, people cited above said, ET relays. Exit of the German bank will not have any impact on the debt resolution or recovery of dues, a senior consultant told ET. The RP, backed by EY, recently extended the date to submit expressions of interest from potential bidders for the distressed airline by a month to September 8. "We are not aware of settlement of any such loan. However, Britannia Industries is no way involved with Go First directly or indirectly for any loans provided," ET quotes a Go First spokesperson as saying in a statement. According to the initial list of claims filed by creditors on June 8, Deutsche Bank had filed INR1,365 crore-claims which were classified as unsecured creditors, ET discloses. About Go First Go First, formerly known as GoAir, was an Indian ultra-low-cost airline based in Mumbai, Maharashtra. Go First was incorporated in April 2004 as GoAir and commenced flight operations in November the following year. Its inaugural flight was from Mumbai to Ahmedabad. The airline is owned by the Wadia Group. Go First filed an application for voluntary insolvency resolution proceedings before National Company Law Tribunal (NCLT) on May 2, 2023. The company said the filing with the NCLT comes after Pratt & Whitney, the exclusive engine supplier for the airline's Airbus A320neo aircraft fleet, refused to comply with an order to release engines to the airline that would have allowed it return to full operations. Go First owes INR6,521 crore to its financial creditors, Bank of Baroda, IDBI Bank, and Deutsche Bank. The airline has a total liability of about INR11,463 crore to banks, other creditors, vendors, and others. On May 10, 2023, the NCLT accepted Go First's voluntary insolvency petition. The NCLT bench appointed Abhilash Lal as the interim resolution professional to look after the affairs of Go First and also suspended its board as part of the insolvency resolution process. GOLDEN SHELTERS: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Golden Shelters Private Limited (GSPL; part of the GS group) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Overdraft Facility 10 CRISIL D (Issuer Not Cooperating) Term Loan 35 CRISIL D (Issuer Not Cooperating) Term Loan 5 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with GSPL for obtaining information through letter and email dated July 19, 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 GSPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GSPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of GSPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. For arriving at the ratings, CRISIL Ratings has combined the business and financial risk profiles of GSPL and Prajit Foundation Pvt Ltd (PFPL). That's because the two companies, collectively referred to as the GS group, are in the same line of business and have common promoters. Incorporated in 2002, GSPL conducts wellness courses at its centre in Chittor district, Andhra Pradesh. The company started leasing out commercial real estate space in fiscal 2013. PFPL, incorporated in 2001, conducts yoga, meditation, and wellness courses. It started operations in 2008. GOYAL ENERGY: CRISIL Lowers Rating on LT/ST Debts to D ------------------------------------------------------ CRISIL Ratings has downgraded the ratings on the bank facilities of Goyal Energy and Steel Private Limited (GESPL) to 'CRISIL D/CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating' as there have been delay in repayments of interest and debt obligations. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Rating - CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') Short Term Rating - CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL A4 ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with GESPL 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 has failed to receive any information on either the financial performance or strategic intent of GESPL, which restricts CRISIL Ratings's ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes information available on GESPL is consistent with 'Assessing Information Adequacy Risk'. Incorporated in 2004 and promoted by Mr Deepak Agarwal and Mr Ritesh Agarwal, GESPL manufactures billets and structural steel products such as angles, rounds, strips, sections and channels, and trades in steel products. It has two manufacturing units in Raipur, Chhattisgarh. ILP 3 INDIA: Voluntary Liquidation Process Case Summary ------------------------------------------------------- Debtor: ILP 3 India 1 Private Limited One World Center, 11th Floor, Tower 2A, Senapati Bapat Marg, Mumbai, Maharasthra 400013 Liquidation Commencement Date: July 25, 2023 Court: National Company Law Tribunal Mumbai Bench Liquidator: Mr. Dilipkumar Natvarlal Jagad 803/804, Ashok Heights, Opp. Sarawasti Apartment, Nikalas Wadi Road, Near Bhuta School, Old Nagar X Road, Gundavali, Andheri East, Mumbai City, Maharashtra – 400069 Email: dilipjagad@hotmail.com Phone No: +91-9821142587 Last date for submission of claims: August 24, 2023 INDOTECH INDUSTRIAL: Insolvency Resolution Process Case Summary --------------------------------------------------------------- Debtor: Indotech Industrial Solutions Private Limited S. No. 129, Off.No. 1 & 2,1st Floor, Ankur Plaza, Mumbai-Bangalore Highway, Nr. Flyover Bridge, Warje Pune 411058 Insolvency Commencement Date: June 27, 2023 Estimated date of closure of insolvency resolution process: December 24, 2023 Court: National Company Law Tribunal, Mumbai Bench Insolvency Professional: Mr. Uday Shreeram Sakrikar 303, Rahul Vihar A, Lane No 8, Dahanukar Colony Kothrud, Pune 411038 Email: ipudaysakrikar2gmail.com Email: irpindotech@gmail.com Last date for submission of claims: August 11, 2023 KANVA FASHIONS: Insolvency Resolution Process Case Summary ---------------------------------------------------------- Debtor: Kanva Fashions Limited Survey No. 7/1, Kongenahalli, Kasaba Hobli, Koratagere Taluk, Tumkur District KA 572129 India Insolvency Commencement Date: July 20, 2023 Estimated date of closure of insolvency resolution process: January 24, 2024 Court: National Company Law Tribunal, Bangalore Bench Insolvency Professional: M V Sudarshan No. 984/13, 18th Main, Girinagar II Phase, Bangalore - 560085 , KA, India Email: sudarshan.mv@outlook.com Email: kanvacirp@gmail.com Last date for submission of claims: August 11, 2023 LEMON ELECTRONICS: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Lemon Electronics Limited (LEL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 10 CRISIL D (Issuer Not Cooperating) Letter of Credit 35 CRISIL D (Issuer Not Cooperating) Proposed Long Term 55 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with LEL for obtaining information through letter and email dated July 28, 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 LEL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on LEL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of LEL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Fastrack was incorporated in February 2008 in Noida, Uttar Pradesh. The company imports mobile phones from China and Taiwan, and sells these in India under the Lemon brand. It commenced operations in June 2008. Fastrack was founded by Mr. Sandeep Mushran, Mr. M S Malik, and Mr. Gopal Kalra, to tap into opportunities in the mobile handset segment in India. In June 2015, the company ventured into marketing of other electronic products such as LED bulbs, LED TVs, and music systems under the same brand. P. C. I. CABLES: CRISIL Withdraws B Rating on INR6cr Cash Loan -------------------------------------------------------------- CRISIL Ratings has withdrawn its ratings on the bank facilities of P. C. I. Cables Industries Private Limited (PCI) on the request of the company and receipt of a no objection certificate from its bank. The rating action is in line with CRISIL Ratings' policy on withdrawal of its ratings on bank loans. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 2.5 CRISIL A4/Issuer Not Cooperating (Withdrawn) Bill Discounting 15 CRISIL A4/Issuer Not under Letter Cooperating (Withdrawn) of Credit Cash Credit 6 CRISIL B/Stable/Issuer Not Cooperating (Withdrawn) Long Term Loan 0.94 CRISIL B/Stable/Issuer Not Cooperating (Withdrawn) Proposed Cash 0.56 CRISIL B/Stable/Issuer Not Credit Limit Cooperating (Withdrawn) CRISIL Ratings has been consistently following up with PCI for obtaining information through letters and emails dated December 24, 2022 and February 28, 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 PCI. This restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on PCI is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the rating on bank facilities of PCI continues to be 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating'. PCI, incorporated in 2013, manufactures enameled power cables, control cables, and overhead high-tension electric wires. The company is promoted by the Kolkata-based Jha family. Mr Harsh Narayan Jha is its managing director. Its manufacturing facility is at Dankuni in Hoogly, West Bengal, and has installed capacity of 1300 kilometre of wire per day. RAIPUR POLYMERS: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Raipur Polymers Private Limited (RPPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.5 CRISIL D (Issuer Not Cooperating) Cash Credit 7.5 CRISIL D (Issuer Not Cooperating) Term Loan 2.25 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with RPPL for obtaining information through letter and email dated July 19, 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 RPPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RPPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of RPPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Incorporated in 2012 and promoted by Raipur-based Mr. Praveen Bhowray, Mr. Mohan Budhwani, and Mr. Ravishankar Choudhary, RPPL manufactures polypropylene and high-density polyethylene woven bags that are used for packaging in industries such as cement, fertiliser, and food packaging. RAJIB CASHEW: CRISIL Lowers Rating on INR9cr Cash Loan to D ----------------------------------------------------------- CRISIL Ratings has downgraded the rating on the bank facilities of Rajib Cashew Processing Private Limited (RCPL) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable Issuer Not Cooperating' as there have been delay in repayments of interest and debt obligations. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 1.9 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') Cash Credit 9 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with RCPL for obtaining information through letters and emails dated September 28, 2022 and November 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non-co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward-looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings has failed to receive any information on either the financial performance or strategic intent of RCPL, which restricts CRISIL Ratings's ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes information available on RCPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, CRISIL Ratings has downgraded the rating on the bank facilities of RCPL to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable Issuer Not Cooperating' as there have been delay in repayments of interest and debt obligations. Incorporated on April 18, 2012, RCPL is promoted by Mr S K Nuruddin, Ms Anar Bibi and Mr S K Rajib Uddin. The company processes cashew-nut at its plant located at Purba Medinipur, West Bengal. Operations commenced in April 2013. Status of non-cooperation with previous CRA RCPL has not cooperated with Credit Analysis & Research Ltd. which has classified the company as non-cooperative through a release dated February 17, 2020 respectively. The reason provided by Credit Analysis & Research Ltd. is non-furnishing of information for monitoring of ratings. REENA TINAAZ: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the ratings on bank facilities of Reena Tinaaz Private Limited (RTPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 30 CRISIL D (Issuer Not Cooperating) Cash Credit 6 CRISIL D (Issuer Not Cooperating) Cash Credit 35 CRISIL D (Issuer Not Cooperating) Cash Credit 12 CRISIL D (Issuer Not Cooperating) Cash Credit 7 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with RTPL for obtaining information through letter and email dated July 19, 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 RTPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RTPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of RTPL continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated in 2014, RTPL is a Mumbai based company promoted by Mr. Uday Kantilal Desai. The company is engaged the trading of Cigarettes (various brands) and FMCG products such as soaps, shampoos, biscuits, and mosquito coils etc. Mr. Desai was earlier undertaking the business under his proprietorship firm Reena Agency. In Jan 2015, the entire business was transferred to RTPL. RITISHA OILS: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the ratings on bank facilities of Ritisha Oils Private Limited (ROPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL D (Issuer Not Cooperating) Cash Credit 5 CRISIL D (Issuer Not Cooperating) Letter of Credit 5 CRISIL D (Issuer Not Cooperating) Letter of Credit 5 CRISIL D (Issuer Not Cooperating) Proposed Long Term 5 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with ROPL for obtaining information through letter and email dated July 19, 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 ROPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on ROPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of ROPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. In 2012, Mr. Ramit Jain set up Manidhari Oils Private Limited, which trades in edible oils and has the same set of customers and suppliers as Ritisha Oils Private Limited. Ritisha Oils Private Limited was set up in 2009 by Mr. Ramit Jain. The company is based in Delhi and trades in edible oils. SAHELI EXPORTS: Liquidation Process Case Summary ------------------------------------------------ Debtor: Saheli Exports Private Limited Old No 10 New No 25 Sir Madhavan Nair Road, Mahalingapuram, Chennai - 600034 Liquidation Commencement Date: July 24, 2023 Court: National Company Law Tribunal, Chennai Bench Liquidator: M/s. SPP Insolvency Professionals LLP No.2719 ,Nivedh Vikas, Pankaja Mill Road Puliyakulam, Coimbatore- 641045 Ph.no: +91-94888-1 0404/73730-52341 Email: ipeadmin@sppgroups.com Last date for submission of claims: August 24, 2023 SREI GROUP: NARCL Likely to Wind Up Equipment Finance Arm --------------------------------------------------------- Press Trust of India reports that after completion of the takeover of two Srei group firms through NCLT route, state-owned asset reconstruction company NARCL is expected to retain only one of the acquired companies, official sources said. According to the report, the Kolkata bench of the National Company Law Tribunal (NCLT) has approved the resolution plan of NARCL for takeover of the twin Srei firms under Insolvency and Bankruptcy Code. The resolution plan had already received approval from banking sector regulator Reserve Bank of India. NARCL emerged as the winning bidder for the two Srei group firms -- Srei Infrastructure Finance Ltd (SIFL) and Srei Equipment Finance Ltd (SEFL) -- through a bidding process in February. "According to the resolution plan submitted, the National Asset Reconstruction Company Ltd (NARCL) will cease all fresh lending activities in the group's equipment financing arm -- SEFL, and after recovering the outstanding debt, it will be 'wound up'," the official told PTI. The loan repayment process may extend for the next seven years, he said. At present, most of the assets remain within SEFL's books due to a previous restructuring. "As outlined in the resolution plan, NARCL, upon assuming control of the companies, will abstain from pursuing fresh lending from SEFL. The non-banking financial company (NBFC) will be dissolved once its outstanding debt is recuperated and ongoing court cases are settled," an official close to the development told PTI. "SIFL with a cleaner balance sheet and a few legal imbroglios will be revitalised, and fresh lending operations will be conducted under this entity. Regulatory authorities are also aligned with this perspective, as previously discussed," the official said. This strategy aims at ensuring business continuity and safeguarding employment. On February 15, the Committee of Creditors (CoC) for the Srei group firms endorsed NARCL's resolution plan, which garnered the highest vote share of 89.2 per cent, PTI recalls. There were three final contenders for Srei companies. PTI says NARCL offered a Net Present Value (NPV) bid of INR5,555 crore. Authum Investment and Infrastructure secured the second-highest vote with 84.86 per cent through a bid of INR5,526 crore. The consortium comprising Varde Partners and Arena Investors with a financial bid of approximately INR4,680 crore, secured the third spot with around nine per cent of the vote, according to the official. The total value of NARCL's resolution plan stands at INR14,301 crore, encompassing a cash component of INR3,001 crore, debentures and security receipts amounting to INR3,300 crore, along with an uncommitted payment of INR8,000 crore via Optionally Convertible Debentures (OCDs). These payments are contingent upon the recovery from underlying assets over the ensuing seven years. According to PTI, creditors accepted a haircut of 55 per cent, considering a complete retrieval of the uncommitted value of INR8,000 crore. The cumulative claims of financial creditors for the two NBFCs amounted to INR32,750.22 crore. The Reserve Bank of India superseded the boards of SIFL and SEFL in October 2021 due to governance concerns and repayment defaults. Subsequently, the banking regulator approached the NCLT Kolkata to initiate the insolvency proceedings against the twins for a consolidated resolution, PTI relates. About Srei Group SREI Infrastructure Finance Ltd. is a non-banking financial institution. The company has three principal lines of business in financing: infrastructure equipment finance, infrastructure projects finance and renewable energy product finance. Infrastructure equipment finance is the largest business division of the Company. On Oct. 4, 2021, the Reserve Bank of India superseded the board of directors of Kolkata-based Srei Infrastructure and said that it will initiate insolvency proceedings with the National Company Law Tribunal (NCLT), according to The Economic Times. The RBI cited governance concerns and defaults by the company and appointed Rajneesh Sharma, former chief general manager, Bank of Baroda as an administrator of the company. The insolvency resolution process against the company started on Oct. 8, 2021. The RBI-appointed administrator has admitted claims of around INR31,868 crore of the total claims received of around INR34, 223 crore from financial creditors to Srei Equipment Finance Ltd (SEFL), the Hindu BusinessLine disclosed. He had also admitted claims to the tune of INR257 crore from financial creditors to Srei Infrastructure Finance. SURYA AGRO: CRISIL Moves B- Debt Ratings to Not Cooperating ----------------------------------------------------------- CRISIL Ratings has migrated the ratings on bank facilities of Surya Agro Industries (SAI) to 'CRISIL B-/Stable/CRISIL A4 Issuer Not Cooperating' Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.18 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Long Term Loan 2.50 CRISIL B-/Stable (ISSUER NOT COOPERATING; Rating Migrated) Long Term Loan 3.01 CRISIL B-/Stable (ISSUER NOT COOPERATING; Rating Migrated) Open Cash Credit 19.00 CRISIL B-/Stable (ISSUER NOT COOPERATING; Rating Migrated) Proposed Long Term 0.31 CRISIL B-/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with SAI for obtaining NDS through letters/emails dated May 31, 2023, June 30, 2023 and July 31, 2023 among others, apart from telephonic communication to seek the same. After non-receipt of NDS for 2 consecutive months, we also sent a letter dated July 24, 2023 reminding the issuer to share the NDS. However, the issuer has remained non cooperative. CRISIL Ratings has also tried to reach out to the lenders of SAI to confirm timely debt servicing during these months, but awaits any feedback. '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 NDSs from SAI, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. Further, non-sharing of NDS by issuers may reflect operational issues faced by issuers in some cases. On the other hand, it may be a beginning of a general non-cooperation and may extend to non-submission of other information. CRISIL Ratings believes that rating action on SAI is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SAI migrated to 'CRISIL B-/Stable/CRISIL A4 Issuer Not Cooperating' Established as partnership firm in 2012, SAI is engaged in processing of paddy into rice products with an installed capacity of 18 tonnes per hour. The firm is based in West Godavari (Andhra Pradesh) and is owned and managed by Mr. M. Suresh Babu. SAI market it under brand name "Surya" and "King". TEXPLAST INDUSTRIES: Insolvency Resolution Process Case Summary --------------------------------------------------------------- Debtor: Texplast Industries Limited Gut No. 39/40 Village Nehroli Taluka Wada Thane MH 421312 211, Anand Estate, Sane Guruji Marg, Chinchpoldi West, Mumbai- 400011 Insolvency Commencement Date: July 18, 2023 Estimated date of closure of insolvency resolution process: January 15, 2024 Court: National Company Law Tribunal, Mumbai Bench Insolvency Professional: Vishnu Kant Kabraip 903, Mayfair Greens, S.V. Road, Kandivali West, Mumbai – 400067 Email: ipvishnukabra@gmail.com Last date for submission of claims: August 10, 2023 TOP BUILDERS: Kreston John & Gan Steps Down as Auditor ------------------------------------------------------ The Edge Malaysia reports that Top Builders Capital Bhd said on Aug. 10 that its external auditor, Kreston John & Gan, has resigned on a volunary basis. Kreston John & Gan's term of office will end 21 days after the resignation notice date of Aug 9 in line with the Companies Act 2016, said the piling and engineering company in a bourse filing. According to the Edge, Top Builders said it will announce its new auditor in due course once the appointment is finalised by the company. On Aug. 3, the PN17 company said it has submitted an appeal to Bursa Securities over the rejection of its application for a further extension of time until Dec. 29 to submit its regularisation plan and over the delisting of Top Builders, the Edge relates. Under the Main Market Listing Requirements, Top Builders was to be delisted from Aug. 8 unless an appeal was submitted by Aug. 3. Trading in Top Builders' shares was suspended on Nov. 8 last year pending the submission of the company's annual report for the year ended June 30, 2022 and quarterly financial report for the periods ended Sept 30, 2022, Dec. 31, 2022, and March 31, 2023, the Edge reports. The company has now submitted the outstanding financial reports, but the counter remains suspended over its failure to submit the regularisation plan. About Top Builders Top Builders Capital Berhad specializes in engineering and construction services. The Company designs, engineers, and constructs piling and foundation, bridges, and buildings. Top Builders was classified as a Practice Note 17 (PN17) company in January 2022 after Bursa Malaysia Securities Bhd rejected the company's request for a six-month extension of the exemption period. Top Builder first triggered the PN17 criteria in June, 2020. Known as Ikhmas Jaya at the time, its external auditor Messrs KPMG PLT raised doubt about the company's ability to continue as a going concern, as the loss-making company's current liabilities had exceeded its current assets by MYR21.6 million. At the same time, its shareholders' equity on a consolidated basis was 25% or less of the share capital (excluding treasury shares), and such shareholders' equity was less than MYR40 million. But thanks to the relief measures introduced by Bursa and the Securities Commission Malaysia, Ikhmas Jaya was not classified as a PN17 listed issuer for a period of 18 months, theedgemarkets.com said. The company is still in the midst of formulating a regularisation plan to address its financial condition. It has been a loss-making company since FY18. VEERGANAPATHI STEELS: CRISIL Keeps D Rating in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Shri Veerganapathi Steels Private Limited (SVSPL) 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 SVSPL for obtaining information through letter and email dated July 19, 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 SVSPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SVSPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SVSPL continues to be 'CRISIL D Issuer Not Cooperating'. SVSPL was established in 1998 and trades in steel products such as channels, pipes, angles, plates, thermo-mechanically treated bars, and round/square bars. VISHAAL PROMOTERS: CRISIL Withdraws B- Rating on INR35cr Loan ------------------------------------------------------------- Due to inadequate information, CRISIL Ratings, in line with SEBI guidelines, had migrated the rating of Vishaal Promoters Private Limited (VPPL) to 'CRISIL B-/Stable Issuer Not Cooperating'. CRISIL Ratings has withdrawn its rating on bank facility of VPPL following a request from the company and on receipt of a 'no dues certificate' from the banker. Consequently, CRISIL Ratings is migrating the ratings on bank facilities of VPPL from 'CRISIL B-/Stable Issuer Not Cooperating' to 'CRISIL B-/Stable'. The rating action is in line with CRISIL Ratings' policy on withdrawal of bank loan ratings. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Lease Rental 35 CRISIL B-/Stable (Migrated from Discounting Loan 'CRISIL B-/Stable ISSUER NOT COOPERATING'; Rating Withdrawn) VPPL was set up in 2001 as a partnership firm by Mr Ilankovan and his wife. The firm was reconstituted as a private limited company in 2004. The company, based in Madurai, undertakes real estate development. ================= I N D O N E S I A ================= AGUNG PODOMORO: Fitch Cuts IDR to 'RD' on Distressed Debt Exchange ------------------------------------------------------------------ Fitch Ratings has downgraded Indonesia-based developer PT Agung Podomoro Land Tbk's (APLN) Long-Term Issuer Default Rating (IDR) to 'RD' (Restricted Default) from 'C', following the completion of the tender offer. Fitch believe this represents a restricted default under Fitch distressed debt exchange (DDE) definition. Subsequently Fitch has upgraded APLN's Long-Term IDR to 'CCC-' to reflect the company's liquidity prospects following the tender offer. Its cash balance is insufficient to pay the remaining USD131.9 million of unsecured 5.95% notes maturing on June 2, 2024, and Fitch believe there is high execution risks surrounding APLN's ability to use its unencumbered assets to support refinancing or repayment efforts. Fitch has also upgraded APLN's unsecured US dollar notes due in June 2024 to 'CCC-', from 'C', with a Recovery Rating of 'RR4'. The notes were issued by APLN's wholly owned subsidiary, APL Realty Holdings Pte. Ltd., and are guaranteed by APLN and several of its subsidiaries. KEY RATING DRIVERS DDE Drives Downgrade: Fitch regard APLN's tender offer as a DDE, as Fitch believe the amendments to the terms constitute a material reduction in original terms and that the transaction helped the company to avoid a traditional default, given its untenable liquidity profile. As such, the Long-Term IDR was downgraded to 'RD' on the completion of the DDE, in line with Fitch criteria. Weak Liquidity, Deteriorating Cash-Balance: The subsequent upgrade to 'CCC-' reflects that the company is no longer in a default-like process, and its weak liquidity prospects. Headroom is minimal, with high execution risks around its ability to repay debt in the next 12 months amid falling presales. Fitch forecast the company's consolidated cash balance will deteriorate to below IDR600 billion by end-2023 (end-March: IDR900 billion) if the presales decline is not arrested. High Refinancing Risk: The completion of the tender offer has reduced, but not eliminated, APLN's refinancing risk in the next 12-18 months. APLN has two unpledged properties valued at around IDR3.1 trillion (around USD200 million) based on the company's share. Fitch believe these assets could be sold or pledged as collateral against a new loan, to repay the remaining US dollar notes. However, APLN's partial ownership of these assets, as well as its declining presales, exposes these options to material execution risk. Declining Presales Pressures Liquidity: Fitch forecasts consolidated presales, excluding bulk land sales, to fall by more than 20% to IDR1.3 trillion in 2023 (2022: IDR1.7 trillion), driven by an increase in cancellations. Cancellations remained high in 1H23 resulting in net presales of just IDR578 billion. Most cancellations are at two of APLN's largest projects, Podomoro City Medan and Podomoro Park Bandung. However, the presales run-rate in 1H23 improved slightly from the first four months this year, supported by a new project launch - Podomoro Parkland, in Karawang, in 2Q23. Presales in 2H23 may stabilise subject to further new project launches, as housing demand will be supported by signs of benign inflation and moderating interest rates domestically, although persistent cancellations in APLN's larger projects are a risk and may affect the company's refinancing efforts. Weakening Interest Coverage: APLN's holding company (holdco) liquidity will remain under pressure despite the completion of the tender offer that reduced more than half of the face value of the USD300 million unsecured notes. The holdco will have to rely on higher dividends from subsidiaries to meet interest payments, which mainly comprises the coupon of the US dollar notes, even as the group's cash flow tightens amid falling presales. This is because the holdco no longer benefits from rental income (2022: IDR222 billion) after the sale of its Central Park mall last year. Parental Linkage Considerations: APLN's Standalone Credit Profile (SCP) is aligned with Fitch's internal assessment of the majority parent, PT Indofica, a private company controlled by the Agung Podomoro Group's CEO. Indofica appears to be debt free, with a small portfolio of commercial property and land. Indofica's SCP is therefore driven by its 83% stake in APLN, as its assets and EBITDA are not significant enough to warrant a different credit profile. As such, Indofica's credit profile has no impact on APLN's rating under Fitch's Parent and Subsidiary Linkage Criteria. DERIVATION SUMMARY APLN's ratings reflect its untenable liquidity profile, which is exacerbated by a trend of weakening presales. Fitch believes that much of the company's refinancing options are subject to material execution risk. APLN's rating is two notches below that of its closest peer, PT Kawasan Industri Jababeka Tbk (KIJA, CCC+). KIJA has better liquidity than APLN following its debt restructuring in 2022 that Fitch considered to be a DDE. However, KIJA's cash balance could deplete unless the company regains access to new financing to fund near-term debt maturities. KEY ASSUMPTIONS Fitch's Key Assumptions Within Fitch Rating Case for the Issuer: - Consolidated presales of IDR1.3 trillion in 2023 and 2024 (attributable: IDR1.1 trillion and IDR1.1 trillion, respectively); -- EBITDA margin of about 28%-29% in 2023 and 2024; -- Cash outflow for construction of IDR1.7 trillion in 2023; -- Capex on fixed assets and investment properties of IDR200 billion in 2023 and 2024; -- Consolidated negative free cash flow of about IDR70 billion in 2023 and IDR340 billion in 2024. RECOVERY RATING ASSUMPTIONS -- Fitch assume APLN will be liquidated in a bankruptcy rather than continue as a going concern, because it is an asset-trading company. In estimating APLN's liquidation and distribution value, Fitch have made the following adjustments and assumptions. -- Fitch use a 75% advance rate against the value of trade receivables. -- Fitch use a 60% advance rate against the value of inventory, net of advances. This reflects Fitch assumption of a 100% advance rate against the value of completed buildings and land, and a 50% advance rate against buildings under construction. -- Fitch use a 100% advance rate against investment properties as well as property, plant and equipment, mainly related to shopping mall and hotel assets. Fitch believe a 100% advance rate is reasonable as these assets are recognised at historical cost, including depreciation, while the market value is considerably higher. -- Fitch deducted the carrying value of the Pluit City and Green Lake Sunter assets from investment property due to the uncertainty around the development of these projects. -- Fitch deducted 10% of the resulting liquidation value for administrative claims. These assumptions result in a recovery rate corresponding to a 'RR1' Recovery Rating for APLN's unsecured notes. However, Fitch acknowledges that there is material uncertainty regarding the ability to realise the sale of these assets. Fitch rate the senior unsecured notes at 'C' with a Recovery Rating of 'RR4' because, under Fitch's Country-Specific Treatment of Recovery Ratings Criteria, Indonesia falls into Group D of creditor friendliness. Instrument ratings of issuers with assets in this group are subject to a soft cap at the issuer's IDR and a 'RR4' Recovery Rating. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- A sustained improvement in liquidity, including the successful refinancing of the US dollar notes due in June 2024. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Further weakening in liquidity that suggests a default of some kind appears probable, or that a default-like process has begun, including if the issuer announces a debt restructuring that Fitch views as a distressed debt exchange. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Insufficient Liquidity: APLN's unsecured June 2024 notes balance has decreased to USD131.9 million (around IDR1.98 trillion) after completing its tender offer. APLN's consolidated cash balance stood at just over IDR900 billion as of end-March 2023, and, along with Fitch forecast of negative free cash flow, is not sufficient to meet its debt maturities in the next 12 months. The company expects to use several unpledged assets to the tune of IDR3.1 trillion, based on its ownership stake, to support its refinancing or repayment efforts, but Fitch believe execution risks are high. APLN confirms it has extended a domestic medium-term note held by a single investor of IDR350 billion due in August 2023 to August 2025. ISSUER PROFILE APLN is an Indonesian property developer with exposure to residential and commercial properties. It has presales from key projects in Jakarta, Bandung and Medan, and also owns and operates malls, hotels and offices. REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. ESG CONSIDERATIONS APLN has ESG Relevance Scores of '4' for Management Strategy and Governance Structure due to the company's high development risk profile, a key part of its strategy. This hampers financial flexibility and leads to an impending risk of default, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. ===================== N E W Z E A L A N D ===================== CUZZIN TRANSPORT: Grant Bruce Reynolds Appointed as Liquidator -------------------------------------------------------------- Grant Bruce Reynolds of Reynolds & Associates on Aug. 8, 2023, was appointed as liquidator of Cuzzin Transport Limited. The liquidator may be reached at: Reynolds & Associates Limited PO Box 259059 Botany Auckland 2163 HOMESTEAD LIMITED: Court to Hear Wind-Up Petition on Sept. 1 ------------------------------------------------------------ A petition to wind up the operations of Homestead Limited will be heard before the High Court at Auckland on Sept. 1, 2023, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition against the company on June 26, 2023. The Petitioner's solicitor is: Cloete Van Der Merwe Inland Revenue, Legal Services 5 Osterley Way Manukau City Auckland 2104 SINCERE FUNERAL: Creditors' Proofs of Debt Due on Sept. 7 --------------------------------------------------------- Creditors of Sincere Funeral Services, NZ Limited are required to file their proofs of debt by Sept. 7, 2023, to be included in the company's dividend distribution. The High Court at Hamilton appointed Janet Sprosen and Leon Francis Bowker of KPMG as liquidators on Aug. 7, 2023. SPEAKEASY HOLDINGS: Court to Hear Wind-Up Petition on Sept. 1 ------------------------------------------------------------- A petition to wind up the operations of Speakeasy Holdings Limited will be heard before the High Court at Auckland on Sept. 1, 2023, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition against the company on July 11, 2023. The Petitioner's solicitor is: Cloete Van Der Merwe Inland Revenue, Legal Services 5 Osterley Way Manukau City Auckland 2104 SUSTAINABLE FARMING: Creditors' Proofs of Debt Due on Sept. 9 ------------------------------------------------------------- Creditors of Sustainable Farming Group Limited are required to file their proofs of debt by Sept. 9, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 8, 2023. The company's liquidators are: Raymond Paul Cox Gareth Russel Hoole Ecovis KGA Limited, Chartered Accountants PO Box 37223 Parnell Auckland VAC GROUP: Liquidators Look at Two Potential Voidable Transactions ------------------------------------------------------------------ BusinessDesk reports that liquidators working through the remains of the now-sold Vac Group New Zealand are looking into two potential transactions totalling nearly NZD375,000 made in the days before their appointment. Late last year, creditors tipped the civil construction group owing NZD33 million into liquidation and appointed Cor Cordis' Michael Billingsley and Neil Cussen as liquidators, BusinessDesk discloses. The pair, who are now at Olvera Advisors, had previously been administrators. Vac Group New Zealand was an Australian-owned NZ civil contractor. ================= S I N G A P O R E ================= APEX FUTURE: Court to Hear Wind-Up Petition on Aug. 25 ------------------------------------------------------ A petition to wind up the operations of Apex Future Pte Ltd will be heard before the High Court of Singapore on Aug. 25, 2023, at 10:00 a.m. DBS Bank Ltd filed the petition against the company on July 3, 2023. The Petitioner's solicitors are: Kelvin Chia Partnership 1 Harbourfront Avenue #14-01 Keppel Bay Tower Singapore 098632 DASIN RETAIL: Gets Notice of Default for SGD430MM Loan Facility --------------------------------------------------------------- The Business Times reports that Dasin Retail Trust has received a notice of default occurring under a Singapore dollar and United States dollar denominated offshore syndicated term loan facility of up to SGD430 million. BT says the offshore facility was announced in 2021 and 2022. Together with a CNY400 million (SGD74.8 million) onshore facility, it was used to finance the acquisitions of the trust's initial portfolio comprising Xiaolan Metro Mall, Ocean Metro Mall, Dasin E-Colour and Shiqi Metro Mall. In a bourse filing late on Aug. 14, the trust said that it has received a notice dated Aug. 10 by the Singapore branch of Malayan Banking in its capacity as the facility agent, BT relates. The trust was notified that one or more events of default has or had occurred and are continuing under the offshore facility. On instruction of the majority lenders, the facility agent had declared that commitments were to be "cancelled and reduced to zero" upon the date of notice, and that the "loans and the accrued interest as well as all other amounts accrued or outstanding under the finance documents" are "immediately due and payable," BT relays. According to the report, Malayan Banking said the defaulting principal sums are US$129.9 million and SGD234.1 million. These, plus the accruing interest of US$6.8 million and default interest of SGD10.8 million as at Aug. 10, are immediately due and payable by the trustee-manager. About Dasin Retail Dasin Retail Trust's principal investment mandate is to invest in, own or develop land, uncompleted developments and income-producing real estate in Greater China (comprising People's Republic of China (PRC), Hong Kong and Macau), used primarily for retail purposes, as well as real estate-related assets, with an initial focus on retail malls. The portfolio of Dasin Retail Trust comprises seven retail malls strategically located in Foshan, Zhuhai and Zhongshan Cities in PRC. Dasin Retail Trust is managed by Dasin Retail Trust Management Pte. Ltd. (the TrusteeManager). The Trustee-Manager's key objectives are to provide Unitholders of Dasin Retail Trust with an attractive rate of return on their investment through regular and stable distributions to Unitholders and to achieve long-term sustainable growth in DPU and net asset value per Unit, while maintaining an appropriate capital structure for Dasin Retail Trust. SYNERGY-BIZ PTE: Court to Hear Wind-Up Petition on Aug. 25 ---------------------------------------------------------- A petition to wind up the operations of Synergy-Biz Pte Ltd will be heard before the High Court of Singapore on Aug. 25, 2023, at 10:00 a.m. DBS Bank Ltd filed the petition against the company on July 3, 2023. The Petitioner's solicitors are: Kelvin Chia Partnership 1 Harbourfront Avenue #14-01 Keppel Bay Tower Singapore 098632 THEMIS ALLIANCE: Court to Hear Wind-Up Petition on Sept. 1 ---------------------------------------------------------- A petition to wind up the operations of Themis Alliance Pte Ltd will be heard before the High Court of Singapore on Sept. 1, 2023, at 10:00 a.m. DBS Bank Ltd filed the petition against the company on July 13, 2023. The Petitioner's solicitors are: Kelvin Chia Partnership 1 Harbourfront Avenue #14-01 Keppel Bay Tower Singapore 098632 THREE ARROWS: Co-Founder Says Bankruptcy Court Can't Sanction Him ----------------------------------------------------------------- James Nani of Bloomberg Law reports that Three Arrows Capital's co-founder is challenging attempts by liquidators of the failed crypto hedge fund to fine him in bankruptcy court, saying he's not subject to the court's jurisdiction because he's not a US citizen. Foreign liquidators for Three Arrows, also known as 3AC, last month asked a judge to fine Kyle Davies $10,000 per day because he's refused to cooperate with their investigation into last year's collapse of the firm. About Three Arrows Capital Three Arrows Capital Ltd. was an investment firm engaged in short-term opportunities trading, and is heavily invested in cryptocurrency, funded through borrowings. As of April 2022, the Debtor was reported to have over $3 billion of assets under its management. Three Arrows Capital Ltd. was incorporated as a business company under the laws of the British Virgin Islands. Its sole shareholder owning all of its "management shares" is Three Arrows Capital Pte. Ltd., which previously operated as a regulated fund manager in Singapore until 2021, when it shifted its domicile to the BVI, as part of a global corporate plan to relocate operations to Dubai. The Debtor borrowed digital and fiat currency from multiple lenders to fund its cryptocurrency investments. After cryptocurrency lost 99% of its value, and then prices of other cryptocurrencies had rapid declines, the Debtor reportedly defaulted on its obligations. On June 24, 2022, one of the Debtor's many creditors -- DRB Panama Inc. -- filed an application to appoint joint provisional liquidators -- and thereafter, full Liquidators -- in the Eastern Caribbean Supreme Court in the High Court of Justice (Commercial Division) located in BVI. The application was assigned claim number VIHCOM2022/0117. Subsequently, on June 27, 2022, the Debtor filed its own application for the appointment of joint liquidators before the BVI Commercial Court. On June 29, 2022, the Honorable Mr. Justice Jack of the BVI Commercial Court appointed Russell Crumpler and Christopher Farmer of Teneo (BVI) Limited as joint liquidators of Three Arrows Capital Ltd. TOMHOUSE PTE: Court to Hear Wind-Up Petition on Aug. 25 ------------------------------------------------------- A petition to wind up the operations of Tomhouse Pte Ltd will be heard before the High Court of Singapore on Aug. 25, 2023, at 10:00 a.m. DBS Bank Ltd filed the petition against the company on Aug. 2, 2023. The Petitioner's solicitors are: Kelvin Chia Partnership 1 Harbourfront Avenue #14-01 Keppel Bay Tower Singapore 098632 VSG PTE: Commences Wind-Up Proceedings -------------------------------------- Members of VSG Pte. Ltd. on Aug. 4, 2023, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Mr. Teh Kwang Hwee 1 Commonwealth Lane #07-32 One Commonwealth Singapore 149544 =============== T H A I L A N D =============== RISLAND (THAILAND): Fitch Cuts Gtd. Debentures Rating to 'CC(tha)' ------------------------------------------------------------------ Fitch Ratings (Thailand) has downgraded the National Long-Term Rating on the guaranteed debentures of Risland (Thailand) Company Limited (RLT) to 'CC(tha)', from 'B-(tha)'. The debentures are guaranteed by RLT's 100% parent, China-based Country Garden Holdings Company Limited (CGH). KEY RATING DRIVERS The downgrade reflects Fitch's view of a further deterioration in CGH's credit profile, which raises the risk of an event of default being triggered on RLT's guaranteed debentures. CGH provides a full, unconditional and irrevocable guarantee to the debentures. The guarantee ranks at least pari passu with CGH's unsecured and unsubordinated obligations. DERIVATION SUMMARY The rating on the guaranteed debentures is based on the credit profile of the guarantor, CGH. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- Evidence that RLT can meet its debt obligations, including the debentures due in October 2023, independently of CGH -- Strengthening of CGH's credit profile Factors that could, individually or collectively, lead to negative rating action/downgrade: -- If RLT defaults on its debt obligations or enters into a default-like process ISSUER PROFILE RLT is a Thailand-based homebuilder, and it is indirectly owned by CGH, a leading home builder in Guangdong, China. RLT launched its first two projects in Thailand in 2018. It now has seven condominium and low-rise projects. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS The rating on the guaranteed debentures is based on the credit profile of the guarantor, CGH. ********* 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. 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