/raid1/www/Hosts/bankrupt/TCRAP_Public/231227.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, December 27, 2023, Vol. 26, No. 259
Headlines
A U S T R A L I A
ABA TRUST 2023-1: S&P Assigns BB(sf) Rating on Class E Notes
BIG OUTDOOR: Second Creditors' Meeting Set for Jan. 3
GATEWAY OPTIONS: Second Creditors' Meeting Set for Jan. 5
MOMENTA ASSOCIATES: Second Creditors' Meeting Set for Jan. 11
STRAIGHTLINE TRANSPORT: First Creditors' Meeting Set for Jan. 2
SUETONIUS WEALTH: Second Creditors' Meeting Set for Jan. 4
W3D CONSTRUCTIONS: Enters Into Liquidation
[*] AUSTRALIA: New Data Shows Liquidations Are Surging
C H I N A
[*] Han Kun LLP Opens New York City Office
I N D I A
AASTHA SPINTEX: Ind-Ra Moves BB+ Issuer Rating to NonCooperating
ANJANEYA RICE: ICRA Keeps D Debt Rating in Not Cooperating
APY MEDI: Ind-Ra Moves B+ Issuer Rating to NonCooperating
ASHOK KUMAR: Ind-Ra Moves B+ Issuer Rating to NonCooperating
AUTOPAL INDUSTRIES: Ind-Ra Cuts Bank Loan Rating to D
CREATIVE CREDIT: ICRA Keeps B+ Debt Rating in Not Cooperating
CUMBUM VALLEY: Ind-Ra Moves B+ Issuer Rating to NonCooperating
FLEXILIS PRIVATE: Ind-Ra Moves BB+ Issuer Rating to NonCooperating
GEEKAY STEEL: ICRA Keeps B+ Debt Rating in Not Cooperating
HERITAGE FINLEASE: Ind-Ra Withdraws BB+ Bank Loan Rating
HINDUSTAN CONSTRUCTION: ICRA Ups Rating on INR823.9cr NCD to BB
INDALC SPIRITS: Ind-Ra Moves B+ Issuer Rating to NonCooperating
K MOHAN: ICRA Keeps D Debt Ratings in Not Cooperating Category
KARNA INTERNATIONAL: ICRA Keeps B Debt Rating in Not Cooperating
M.M. VORA: ICRA Keeps B+ Debt Rating in Not Cooperating Category
MCNALLY BHARAT: NCLT Approves Company's Acquisition by BTL EPC
MILIND PULSES: ICRA Keeps D Debt Rating in Not Cooperating
NISHI FOREX: ICRA Keeps D Debt Ratings in Not Cooperating
SCR NIRMAN: ICRA Keeps B+ Debt Ratings in Not Cooperating
VASU COCO: ICRA Keeps D Debt Rating in Not Cooperating Category
VENKATA UMASHANKAR: ICRA Keeps D Debt Rating in Not Cooperating
VINDHYAVASINI STEEL: Liquidation Process Case Summary
ZENITH EXPORTS: ICRA Keeps B+/A4 Debt Ratings in Not Cooperating
M A L A Y S I A
CAPITAL A: Applies for More Time to Submit Regularisation Plan
N E W Z E A L A N D
COMPLEX FACADE: Creditors' Proofs of Debt Due on Feb. 2
Q CARD: Fitch Affirms 'Bsf' Rating on Two Tranches, Outlook Stable
RESTORATION HOLDINGS: Creditors' Proofs of Debt Due on Jan. 16
XIAOLI'S CHINESE: Creditors' Proofs of Debt Due on Jan. 28
S I N G A P O R E
INYA TRADING: Commences Wind-Up Proceedings
KEPPEL URBAN: Creditors' Proofs of Debt Due on Jan. 22
RH DEVELOPMENTS: Creditors' Proofs of Debt Due on Jan. 22
TA STRATEGIC: Creditors' Proofs of Debt Due on Jan. 22
TOH & CREATE: Creditors' Proofs of Debt Due on Jan. 22
S R I L A N K A
HELA APPAREL: Fitch Affirms & Withdraws 'BB+(lka)' National Rating
- - - - -
=================
A U S T R A L I A
=================
ABA TRUST 2023-1: S&P Assigns BB(sf) Rating on Class E Notes
------------------------------------------------------------
S&P Global Ratings assigned its ratings to six of the seven classes
of prime residential mortgage-backed securities (RMBS) issued by
Perpetual Corporate Trust Ltd. as trustee for ABA Trust 2023-1. ABA
Trust 2023-1 is a securitization of prime residential mortgage
loans originated by Auswide Bank Ltd. (Auswide).
The ratings assigned to the prime floating-rate RMBS reflect the
following factors.
The credit risk of the underlying collateral portfolio and the
credit support provided to each class of rated notes are
commensurate with the ratings assigned. Subordination and lenders'
mortgage insurance (LMI) cover provide credit support for the rated
notes. The credit support provided to the rated notes is sufficient
to cover the assumed losses at the applicable rating stress. S&P's
assessment of credit risk takes into account Auswide's underwriting
standards and approval process, which are consistent with
industrywide practices; the servicing quality of Auswide; and the
support provided by the LMI policies on 2.9% of the loans in the
portfolio. The LMI policies provide 100% cover for the outstanding
principal of each insured loan, accrued interest, and reasonable
selling costs.
The rated notes can meet timely payment of interest and ultimate
payment of principal under the rating stresses. Key rating factors
are the level of subordination provided, LMI cover, fixed-rate
swap, mechanism for trapping excess spread into an excess revenue
reserve, provision of a liquidity reserve, and principal draw
function, and the provision of an extraordinary expenses
reserve--funded by Auswide at closing to cover extraordinary
expenses--sized at a level consistent with the ratings. All rating
stresses are made on the basis that the trust does not call the
notes at or beyond the call-option date, and that all rated notes
must be fully redeemed via the principal waterfall mechanism, under
the transaction documents.
S&P said, "Our ratings also take into account the counterparty
exposure to Australia and New Zealand Banking Group Ltd. (ANZ) as
interest-rate swap provider and bank account provider. Some 5.0% of
the portfolio comprises loans for which the interest rate is fixed
for up to five years. An interest-rate swap will be provided to
hedge the mismatch between the fixed-rate receipts on the
fixed-rate loans and the floating-rate interest payable on the
notes. The transaction documents for the swap include downgrade
language consistent with our counterparty criteria.
"We also have factored into our ratings the legal structure of the
trust, which is established as a special-purpose entity and meets
our criteria for insolvency remoteness."
Ratings Assigned
ABA Trust 2023-1
Class A, A$360.00 million: AAA (sf)
Class AB, A$18.00 million: AAA (sf)
Class B, A$12.00 million: AA (sf)
Class C, A$4.00 million: A (sf)
Class D, A$2.00 million: BBB (sf)
Class E, A$1.73 million: BB (sf)
Class F, A$2.27 million: Not rated
BIG OUTDOOR: Second Creditors' Meeting Set for Jan. 3
-----------------------------------------------------
A second meeting of creditors in the proceedings of Big Outdoor Pty
Ltd has been set for Jan. 3, 2024 at 3:00 p.m. via Zoom at the
offices of Vincents at Level 14, 25 Martin Place 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 Jan. 2, 2024 at 4:00 p.m.
Henry McKenna of Vincents was appointed as administrator of the
company on Nov. 24, 2023.
GATEWAY OPTIONS: Second Creditors' Meeting Set for Jan. 5
---------------------------------------------------------
A second meeting of creditors in the proceedings of Gateway Options
Pty Ltd has been set for Jan. 5, 2024 at 10:00 a.m. via
videoconference only.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 4, 2024 at 5:00 p.m.
Roberto Crispino, Richard Albarran and John Vouris of Hall Chadwick
were appointed as administrators of the company on Nov. 28, 2023.
MOMENTA ASSOCIATES: Second Creditors' Meeting Set for Jan. 11
-------------------------------------------------------------
A second meeting of creditors in the proceedings of Momenta
Associates Pty Ltd and Momenta Resourcing Pty Ltd has been set for
Jan. 11, 2024 at 12:00 p.m. via virtual meeting technology only.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 10, 2024 at 4:00 p.m.
Michael Fung, Melissa Humann and Rebecca Gill of
PricewaterhouseCoopers were appointed as administrators of the
company on Dec. 1, 2023.
STRAIGHTLINE TRANSPORT: First Creditors' Meeting Set for Jan. 2
---------------------------------------------------------------
A first meeting of the creditors in the proceedings of Straightline
Transport Pty Ltd will be held on Jan. 2, 2024 at 11:00 a.m. at the
offices of William Buck at Level 20, 181 William Street in
Melbourne.
Garth O'Connor-Price and Laurie Fitzgerald of William Buck were
appointed as administrators of the company on Dec. 19, 2023.
SUETONIUS WEALTH: Second Creditors' Meeting Set for Jan. 4
----------------------------------------------------------
A second meeting of creditors in the proceedings of Suetonius
Wealth Management Pty Limited has been set for Jan. 4, 2024 at
10:30 a.m. at the offices of Condon Associates at Level 6, 87
Marsden Street in Parramatta.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 2, 2024 at 4:00 p.m.
Schon Gregory Condon of Condon Associates was appointed as
administrator of the company on Nov. 28, 2023.
W3D CONSTRUCTIONS: Enters Into Liquidation
------------------------------------------
Daily Mail reports that a construction company ran by the
son-in-law of a prominent developer has collapsed.
W3D Constructions Pty Ltd, which operates out of Surfers Paradise
and is owned by Ross Wolbers, entered liquidation on December 7.
Mr. Wolbers' company owes AUD1.2 million and the collapse has now
meant a construction job at his former school The Southport School
(TSS) will go unfinished, Daily Mail relates.
W3D Constructions owes AUD1.278 million to almost 50 creditors
including AUD275,000 owed to NAB, according to a report by
liquidator Matthew Bookless, of SV Partners, Daily Mail discloses
citing the Courier Mail.
Mr. Wolbers' wife Louise is the daughter of property developing
magnate Norm Rix who is one of Queensland's richest people.
The Australian Tax Office is also listed a creditor for an
undisclosed amount, as is Aluminium and Fabrication which is owed
almost AUD208,000, Daily Mail notes.
TSS hired Mr. Wolbers' company to upgrade the school's sporting
pavilion and day boarders' facilities.
The school has since engaged with other builders to get the jobs
done.
Daily Mail says subcontracted tradies were told to get there tools
and leave work sites as projects abruptly ground to a halt.
'We didn't deserve that, especially at Christmas time,' one told
the Courier Mail.
According to the creditor's report, just over AUD30,000 of the
company's nearby AUD275,000 assets is listed as cash on hand.
[*] AUSTRALIA: New Data Shows Liquidations Are Surging
------------------------------------------------------
News.com.au reports that shocking new statistics show that
creditors owed money from a company collapse have no choice but to
write off their losses completely in the overwhelming majority of
cases.
According to news.com.au, the Australian Securities and Investments
Commission (ASIC) published its annual corporate insolvency
statistics earlier this week, revealing that small and medium sized
business have "dominated" the external administration sector for
2023.
But shamefully, in 96% of these cases, only between zero and 11
cents is recovered for every dollar owed to out-of-pocket
creditors, Australia's corporate regulator found.
Indeed, earlier this week, news.com.au reported on failed fitness
chain UFC Gym trying to scrape its way out of external
administration by offering creditors one cent for every dollar they
were owed so they could take back control of the company, an offer
that was ultimately rejected.
The gym franchise had debts of AUD15.6 million. One creditor, Karim
Girgis, is owed AUD1.2 million, and would have recovered a measly
AUD12,000 if he had accepted the proposal.
News.com.au says "the construction industry - perhaps
unsurprisingly, given how run off my feet I have been this entire
year - was named and shamed as the sector facing the largest number
of insolvencies, coming in at 28% of the total amount of
liquidations, administration and receivership appointments across
the nation."
Shabnam Amirbeaggi, president of the Association of Independent
Insolvency Practitioners (AIIP) and a registered liquidator at
Crouch Amirbeaggi, noted that 92% of collapsed construction firms
do not pay any dividend at all to creditors.
Ms Amirbeaggi told news.com.au that "too often" when it came to
insolvent small and medium sized companies "there is emotional
attachment to the business, and directors wait too long to seek
advice".
"Or when they do seek advice, they look for the ‘too good to be
true' outcome, which is often given by unregulated pre-insolvency
advisers," she added.
Ms Amirbeaggi criticised how Australia's insolvency and bankruptcy
laws applied compared to other nations.
In July this year, the Parliamentary Joint Committee on
Corporations and Financial Services, led by Senator Deborah
O'Neill, looked into the "effectiveness of Australia's corporate
insolvency laws in protecting and maximising value for the benefit
of all interested parties and the economy," according to
news.com.au.
The Committee found that Australia's corporate insolvency system is
"overly complex, difficult to access, and creates unnecessary cost
and confusion for both debtors and creditors".
Ms. Amirbeaggi agreed with this finding.
"Whilst we have the laws available to take action to recover money
for creditors, for example for insolvent trading, the costs of
litigation and recovery often far outweigh the benefit, and do not
always result in a return to the creditors," she said.
Australia has previously been called a "paradise" for white collar
crime by a former ASIC chairman in 2014 when comparing its stance
on corporate criminality, in comparison to other developed nations
like the UK and the US, adds news.com.au.
=========
C H I N A
=========
[*] Han Kun LLP Opens New York City Office
------------------------------------------
Han Kun Law Offices ("Han Kun" or the "Firm") on Dec. 18 announced
the official opening and operation in New York City of Han Kun LLP
("Han Kun NY"), a New York limited liability partnership
established in collaboration with US-based professionals.
In the wake of Han Kun Singapore office which went into operation
in April of this year, Han Kun NY is another strategically
important step of the Firm to further expand our global footprint.
The new office represents the Firm's commitment to strengthen our
capabilities to serve our clients' interest worldwide. Not only is
Han Kun NY a critical mix in the expansion of its global network,
but also a requisite platform to better serve the needs of our
clients operating overseas.
Han Kun NY is located on the 2nd Floor of the Rockefeller Center,
620 Fifth Avenue, New York City, the United States of America. The
new office will work closely with other US-based professional
service providers as well as the Firm's other offices to meet our
clients' needs in the United States. We will continue to follow the
philosophy of "China Practice, Global Vision" and provide
pragmatic, efficient, integrated and quality legal services to our
corporate and individual clients and help them implement their
global strategies and development in the United States and
elsewhere in the world.
About Han Kun
Han Kun -- http://www.hankunlaw.com-- is a leading full-service
law firm in China. Over the years, Han Kun has been widely and
consistently recognized as a leader in complex cross-border and
domestic transactions and compliance matters. Its main practice
areas include private equity, mergers and acquisitions,
international and domestic capital markets, investment funds, asset
management, compliance, banking and finance, aviation finance,
foreign direct investment, antitrust/competition, data protection,
private client/wealth management, intellectual property, bankruptcy
and restructuring and dispute resolution. It has over 800
professionals located in Beijing, Shanghai, Shenzhen, Hong Kong,
Haikou, Wuhan, Singapore and New York City.
=========
I N D I A
=========
AASTHA SPINTEX: Ind-Ra Moves BB+ Issuer Rating to NonCooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Aastha Spintex Private Limited to the non-cooperating category as
per Ind Ra's policy on Issuer Non-Cooperation, following
non-submission of No Default Statement continuously for 3 months
despite continuous requests and follow-ups by the agency and also
IND-Ra's inability to validate timely debt servicing through other
sources it considers reliable. No Default Statement in the format
prescribed by SEBI is required to be shared by the issuer every
month as a confirmation that all financial obligations are being
serviced on time., Investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB+/Stable (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR230 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND BB+/Stable (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating;
-- INR35 mil. Non-Fund Based Working Capital Limit migrated to
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR275.5 mil. Term loan due on October 30, 2030 migrated to
non-cooperating category with IND BB+/Stable (ISSUER NOT
COOPERATING) rating.
Company Profile
ASPL was established in 2014, by the members of the Patel and
Sitapara families. The company manufactures cotton yarn used for
knitting and weaving, with bulk production of combed yarn of count
30. It has a manufacturing facility at Halvad, Morbi.
ANJANEYA RICE: ICRA Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
ICRA has kept the long-term rating for the bank facilities of
Anjaneya Rice Industries in the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 10.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Anjaneya Rice Industries, ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Founded in 2009, Anjaneya Rice Industries is engaged in the milling
of paddy and produces raw and boiled rice. The rice mill is located
at Miryalaguda, Nalgonda of Telangana. Anjaneya Rice Industries
processes paddy into raw and parboiled rice, rice bran, broken
rice, and husk. It has installed paddy milling capacity of 4 tons
per hour (tph) for raw rice and 4 tph for boiled rice. The firm's
operations are overseen by the managing partner Mr. Voruganti
Venkateshwarlu. All the partners are from the same family.
APY MEDI: Ind-Ra Moves B+ Issuer Rating to NonCooperating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Apy Medi Services Private Limited to the non-cooperating category
as per Ind Ra's policy on Issuer Non-Cooperation, following
non-submission of No Default Statement continuously for 3 months
despite continuous requests and follow-ups by the agency and also
IND-Ra's inability to validate timely debt servicing through other
sources it considers reliable. No Default Statement in the format
prescribed by SEBI is required to be shared by the issuer every
month as a confirmation that all financial obligations are being
serviced on time. Investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND B+/Stable (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR20 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND B+/Stable (ISSUER NOT
COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating; and
-- INR260 mil. Term loan due on Dec 10, 2030 migrated to non-
cooperating category with IND B+/Stable (ISSUER NOT
COOPERATING) rating.
Company Profile
AMSPL was incorporated under the provisions of the Companies Act,
1956, with the Registrar of Companies, Delhi, on May 3, 2013. The
company plans to set up multi super specialty hospitals in tier II
cities in India in two phases. Under phase I, the company is
setting up a hospital in Greater Noida, which would commence
operations with 173 beds out of the total planned capacity of 300
beds.
ASHOK KUMAR: Ind-Ra Moves B+ Issuer Rating to NonCooperating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Ashok kumar Chhabra Constructions Private Limited to the
non-cooperating category as per Ind Ra's policy on Issuer
Non-Cooperation, following non-submission of No Default Statement
continuously for 3 months despite continuous requests and
follow-ups by the agency and also IND-Ra's inability to validate
timely debt servicing through other sources it considers reliable.
No Default Statement in the format prescribed by SEBI is required
to be shared by the issuer every month as a confirmation that all
financial obligations are being serviced on time. Investors and
other users are advised to take appropriate caution while using
these ratings. The rating will now appear as 'IND B+/Stable (ISSUER
NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR5 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND B+/Stable (ISSUER NOT
COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating;
-- INR45 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND B+/Stable (ISSUER NOT
COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating; and
-- INR50 mil. Non-Fund Based Working Capital Limit migrated to
non-cooperating category with IND A4 (ISSUER NOT COOPERATING)
rating.
Company Profile
AKCCPL, incorporated in 2000, executes road construction projects
for municipal and development authorities, and the Public Works
Departments of Uttar Pradesh. Sachin Chhabra and his brother,
Khitij Chhabra, are the promoters.
AUTOPAL INDUSTRIES: Ind-Ra Cuts Bank Loan Rating to D
-----------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Autopal
Industries Limited's (AIL) bank facilities' ratings to 'IND D
(ISSUER NOT COOPERATING)' from 'IND BB- (ISSUER NOT COOPERATING)'.
The detailed rating actions are:
-- INR100 mil. Fund-based working capital limits downgraded with
IND D (ISSUER NOT COOPERATING) rating; and
-- INR6.3 mil. Term loans due on March 2028 downgraded with
IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
best available information.
Key Rating Drivers
The downgrade reflects AIL's delays in servicing of debt
obligations, based on public sources. Ind-Ra has not been able to
ascertain the reason for the delay, as the issuer has been
non-cooperative.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
Company Profile
AIL manufactures LED lighting products.
CREATIVE CREDIT: ICRA Keeps B+ Debt Rating in Not Cooperating
-------------------------------------------------------------
ICRA has kept the long-term rating of Creative Credit Co-operative
Society Limited in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 10.00 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Creative Credit Co-operative Society Limited, ICRA has been
trying to seek information from the entity so as to monitor its
performance. Further, ICRA has been sending repeated reminders to
the entity for payment of surveillance fee that became due. Despite
multiple requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Creative Credit Co-operative Society Limited (CCCSL) is a state
co-operative society registered in 2006 under the Rajasthan
Cooperative Societies Act, 2001. Itwas founded by Mr. Kailash
Swarup Kalla, with the objective of developing the habit of
savingamong members and making advances to members at specific
terms for their household, business and societal needs. The society
operates in four districts of Rajasthan, namely Pali, Jalor, Sirohi
and Jodhpur, and is involved in deposit taking and lending
activities only with its members. CCCSL reported a profit of
INR0.43 crore in FY2021 on assets under management (AUM)of INR76
crore as on March 31, 2021. As on March 31, 2021, it had a deposit
base of INR51 crore and 36,466 members.
CUMBUM VALLEY: Ind-Ra Moves B+ Issuer Rating to NonCooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
CUMBUM VALLEY WINERY PRIVATE LIMITED to the non-cooperating
category as per Ind Ra's policy on Issuer Non-Cooperation,
following non-submission of No Default Statement continuously for 3
months despite continuous requests and follow-ups by the agency and
also IND-Ra's inability to validate timely debt servicing through
other sources it considers reliable. No Default Statement in the
format prescribed by SEBI is required to be shared by the issuer
every month as a confirmation that all financial obligations are
being serviced on time., Investors and other users are advised to
take appropriate caution while using these ratings. The rating will
now appear as 'IND B+/Stable(ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR97 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND B+/Stable (ISSUER NOT
COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating; and
-- INR453 mil. Term loan due on July 31, 2030 migrated to non-
cooperating category with IND B+/Stable (ISSUER NOT
COOPERATING) rating.
Company Profile
Incorporated in November, 2007, CVMPL is engaged in the business of
processing wine from grapes for the domestic market and supplies to
TASMAC, government of Tamil Nadu. The wine processing facility is
located in Theni, Madurai and the registered office is in Chennai,
Tamil Nadu. The promoters are R.Raghu, R Prabhu and R Rajnarayan.
Wine is sold under the brand names - Misty Grapes, Red Sea and
Mascato "c" Valley.
FLEXILIS PRIVATE: Ind-Ra Moves BB+ Issuer Rating to NonCooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Flexilis Private Limited to the non-cooperating category as per Ind
Ra's policy on Issuer Non-Cooperation, following non-submission of
No Default Statement continuously for 3 months despite continuous
requests and follow-ups by the agency and also IND-Ra's inability
to validate timely debt servicing through other sources it
considers reliable. No Default Statement in the format prescribed
by SEBI is required to be shared by the issuer every month as a
confirmation that all financial obligations are being serviced on
time., Investors and other users are advised to take appropriate
caution while using these ratings. The rating will now appear as
'IND BB+/Stable (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating action is:
-- INR940 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND BB+/Stable (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating.
Company Profile
Incorporated in 1989, FPL is a family managed company engaged in
trading of synthetic rubber, carbon black, rubber chemicals and
rubber process oil. Its head office is situated at Mumbai
(Maharashtra)and its branch offices are located at Ahmedabad
(Gujarat), Chennai (Tamil Nadu), Faridabad (Haryana), Agartala
(Tripura) and Kochi (Kerala).
GEEKAY STEEL: ICRA Keeps B+ Debt Rating in Not Cooperating
----------------------------------------------------------
ICRA has kept the long-term rating of Geekay Steel Corporation in
the 'Issuer Not Cooperating' category. The rating is denoted as
[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 15.00 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Geekay Steel Corporation, ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Geekay Steel Corporation (GSC) was founded in the year 2016 by Mr.
Gopal Kishan Agarwal as a sole proprietorship concern. The firm is
involved in the trading of steel products including iron rods,
flats, angles, scrap, etc. These products are majorly used in
fabrication, cement, infrastructure and machine manufacturing
industry.
HERITAGE FINLEASE: Ind-Ra Withdraws BB+ Bank Loan Rating
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Heritage Finlease
Limited's bank loan rating as follows:
-- The IND BB+ (ISSUER NOT COOPERATING) rating on the INR500 mil.
bank loan is withdrawn.
Key Rating Drivers
Ind-Ra is no longer required to maintain the rating as there is no
debt outstanding against the rated instrument. This is consistent
with Ind-Ra's Policy on Withdrawal of Ratings. The agency will no
longer provide ratings or analytical coverage for the company.
Company Profile
Hyderabad-based Heritage Finlease is a non-banking finance company
that primarily provides loans to milk-supplying cattle farmers
towards the purchase of livestock. It also offers personal loans,
business loans and loans against property Heritage Finlease has
been in the lending business since 1996.
BHAGWATI GEMS: Ind-Ra Affirms BB+ LongTerm Rating
-------------------------------------------------
India Ratings Revises Outlook on Bhagwati Gems' Bank Facilities to
Stable; Affirms 'IND BB+'
Dec 08, 2023|Gems | Jewelry And Watches
India Ratings and Research (Ind-Ra) has revised the Outlook on
Bhagwati Gems' (BG) long-term debt to Stable from Positive, while
affirming the rating at 'IND BB+'.
The detailed rating action is:
-- INR160 mil. Fund-based working capital limit Outlook revised
to Stable from Positive; affirmed with IND BB+/Stable rating.
The Outlook revision reflects Ind-Ra's expectation of a reduction
in the scale of operations, marked by a decrease in the revenue as
well as the absolute EBITDA in FY24. This, along with a likely
increase in the debt level, will result in deterioration in credit
metrics during the year.
Key Rating Drivers
During 7MFY24, BG's revenue declined to INR1,828 million (7MFY23:
INR3,102 million), due to weak international demand, continued
geopolitical tensions (the Russia-Ukraine war) and the ongoing
armed conflict between Israel and Hamas which also has impacted the
overall revenue. Ind-Ra expects the revenue to be slightly lower on
a yoy basis in FY24, based on the interim financials. The agency
expects the revenues to reduce further over the near-to-medium term
due to a likely decline across the cut & polished diamond (CPD)
industry. BG's revenue and absolute EBDITA declined to INR4,606
million and INR152.94 million, respectively, in FY23 (FY22:
INR6,860.52 million and INR154.41 million) due to the decreased
demand from end-user markets. Moreover, the revenue in FY23 was
impacted due to geo-political situations which affected the rough
diamond supply from Russia and led to a reduced demand in
international markets.
Ind-Ra expects BG's absolute EBITDA to reduce to INR107 million in
FY24 (FY23: INR152.94 million), due to a decline in the revenue.
Although the return on capital employed was 20.4% in FY23 (FY22:
32.4%), the firm's EBITDA margins were modest in the range of
2.9%-3.6% during FY20-FY23 (FY23: 3.32%), owing to the a) the
low-value additive nature of business and b) intensely competitive
and fragmented diamond industry. The low product differentiation
puts additional pressure on the profitability margins. Furthermore,
BG's margins are susceptible to volatility in the price movement of
rough and polished diamonds, and face foreign exchange fluctuation
risk.
Ind-Ra expects the credit metrics to deteriorate slightly over the
near term due to a rise in the debt levels to meet the company's
working capital requirements. However, despite an increase in the
working capital limit, the credit metrics will remain in a
comfortable range over the near term, amid the absence of any
debt-funded capex. BG's gross interest coverage (operating
EBITDA/gross interest expense) deteriorated to 14.04x in FY23
(FY22: 37.03x) due to a decrease in the absolute EBITDA to
INR152.94 million (INR206.6 million). The net financial leverage
(adjusted net debt/operating EBITDA) remained healthy and stable at
0.86x in FY23 (FY22: 0.80x) due to low debt.
Liquidity Indicator – Stretched: BG does not have any capital
market exposure and relies on banks and financial institutions to
meet its funding requirements. The average maximum utilization of
the fund-based limits was 84% during the 12 months ended October
2023, with no instances of overutilization. BG has long-term debt
repayment obligations of INR8.00 million and INR11.00 million for
its guaranteed emergency credit line loans for FY24 and FY25,
respectively. The cash flow from operations turned positive at
INR89.53 million in FY23 (FY22: negative INR8 million) due to
favorable changes in the working capital. The free cash flow too
turned positive at INR85.69 million in FY23 (FY22: negative
INR14.49 million). The net working capital cycle elongated to 47
days in FY23 (FY22: 29 days) due to a stretch in the inventory days
to 109 (55). The cash and cash equivalents stood at INR6.32 million
at FYE23 (FYE22: INR3.49 million).
The ratings are supported by promoter's experience of around 20
years in the CPD industry.
Rating Sensitivities
Positive: An increase in the scale of operations, along with an
improvement in the profitability, leading to an overall improvement
in the liquidity position and the sustenance of the credit metrics
with the interest coverage staying above 3x, will be positive for
the ratings.
Negative: Any deterioration in the scale of operations or
profitability or deterioration in the credit metrics with the
interest coverage falling below 2x will be negative for the
ratings.
Company Profile
BG, a partnership firm, is engaged in the cutting and polishing of
rough diamonds at its unit in Surat. In addition, it is engaged in
the trading of rough diamonds. Its partners are Bharat Kathiriya,
Bhimjibhai Kathiriya and Manishaben Kathiriya.
HINDUSTAN CONSTRUCTION: ICRA Ups Rating on INR823.9cr NCD to BB
---------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of
Hindustan Construction Company Limited (HCC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-convertible 823.9 [ICRA]BB(Stable); upgraded
debenture (NCD) from [ICRA]B(Stable)
Rationale
The rating upgrade positively factors in HCC's significant ramp-up
in gross billing and operating margins from the core engineering,
procurement and construction (EPC) business in FY2023. HCC's
construction income grew by 22% year-on-year (YoY) to INR4,736.3
crore in FY2023 (7% YoY growth in H1 FY2024). Its operating margin
from the EPC business improved to 11.6% in FY2023 (12.4% in H1
FY2024) from 4.4% in FY2022. Improved operating leverage, presence
of price escalation clauses in most of the contracts, along with
lower sub-contracting dependence supported margin expansion in
FY2023. ICRA expects the company to sustain its revenue growth
momentum, while maintaining healthy operating margins. ICRA has
also factored in the likely improvement in the liquidity position
from the planned equity infusion of INR300 crore through rights
issue, which is expected to be completed by the end of FY2024.
The rating continues to take comfort from HCC's adequate order book
(OB) position (OB/OI ratio of 2.6 times as on September 30, 2023),
which provides medium-term revenue visibility and diversified order
book across segments, geographies and clientele. The rating
favourably factors in HCC's long track record of operations of over
nine decades, supported by an experienced management and
demonstrated capabilities in executing relatively complex
tunnelling and hydro projects.
The rating, however, is constrained by HCC's high TOL/TNW, which
stood at 9.6 times as on March 31, 2023 (FY2022: 215 times) and is
expected to remain elevated in the near term. HCC's receivables and
work in progress remain elevated due to ongoing arbitration/claims
pending with the clients. It has been able to manage the working
capital requirements, partly by availing extended credit period
from suppliers/sub-contractors and mobilisation advances from
clients. Going forward, any material deterioration in the working
capital intensity from the anticipated levels can impact its
liquidity position and will be a key rating sensitivity. With
implementation of resolution plan (RP) in September 2022 (wherein
part debt of HCC was carved out and transferred to Prolific
Resolution Private Limited or PRPL), the debt repayment schedule
was elongated with modest near-term obligations and a ballooning
repayment structure. In the backdrop of improved operating
performance and limited repayment obligations, the debt coverage
metrics are satisfactory in the near term. HCC is in the process of
monetising some of its non-core investments. In the last one year,
the company realised INR325 crore, which was utilised for debt
repayment as well as towards operational cash flow mismatches. ICRA
notes that realisation from claims and awards has remained slower
than the earlier expected levels. It is expecting realisation of
about INR288 crore from awards and claims over the next 18 months.
Timely realisation of these funds remain critical, given the step
up in repayments starting from FY2025. Going forward, timely
monetisation of non-core assets and realisation of awards remains
remain crucial to materially improve its liquidity position. In
absence of sanctioned fund-based working capital lines, the company
is maintaining over INR300 crore of liquidity on a sustained basis.
It is in discussions for enhancement in fund-based working capital
limits, timely sanctioning of which would be a key monitorable.
ICRA draws comfort from the cushion available in the form of
unutilised arbitration/court BGs that could be used to realise some
of the awards pending in the higher courts, in case of funding
shortfall. In the last one year, lenders have permitted HCC to
utilise ~INR65 crore of court BGs to avail the arbitration money,
which was used to prepay the fund-based credit facilities of the
respective lenders whosoever have sanctioned such BGs.
HCC has provided guarantees for the entire debt (Rs. 2,854 crore)
that got transferred to PRPL, as a part of RP plan. Hence, any
crystallisation of those guarantees will impact its credit profile.
However, PRPL has realised awards of ~Rs. 51 crore in 8M FY2024 and
the debt repayments would commence from FY2027 providing
satisfactory pay-in and pay-out gap between realisation of award
proceeds and debt obligations. The rating considers the company's
exposure to sizeable contingent liabilities in the form of BGs,
mainly for contractual performance, mobilisation advance and
security deposits. The rating is constrained by moderate execution
risks as about 16% of the order book as on September 30, 2023 is in
preliminary/early stage of execution with less than 25% progress.
Notwithstanding HCC's strong execution capabilities, any sizeable
invocation of performance guarantees would affect the company's
liquidity and financial risk profile. In this regard, ICRA takes
comfort from the non-invocation of BG in last twelve months ending
November 2023. With improved operating performance, the company is
able to ramp-up execution in various ongoing projects, which has
led to reduction in the number of stuck projects, which mitigates
the BG invocation risk.
The Stable outlook reflects ICRA's opinion that the company will
continue to sustain its improved operating performance and benefit
from its adequate order book position and strong execution
capabilities.
Key rating drivers and their description
Credit strengths
* Adequate and diversified order book position provides healthy
medium-term revenue visibility: The company had an order book
position of INR12,344 crore as on September 30, 2023. The OB/OI
ratio remained adequate at 2.6 times of the construction income of
FY2023, providing healthy medium-term revenue visibility. Timely
commencement and execution of these orders are critical to sustain
revenue visibility going forward. HCC's current outstanding order
book is well-diversified in terms of geography with pan-India
presence, along with international operations in Bhutan, across
multiple segments such as transportation, hydro power, water, and
nuclear projects. The transportation segment accounted for 49% of
the unexecuted order book as on September 30, 2023. The order book
is fairly diversified in terms of projects and clients, with top
three clients contributing 47% and the top five orders constituting
55% of the unexecuted order book as on September 30, 2023.
* Established track record and extensive experience of management
team in civil construction sector: HCC has an established track
record of operations of over nine decades, supported by experienced
management and demonstrated capabilities in executing relatively
complex hydro and tunnelling projects at geographically diverse
locations. It has proven its execution capabilities by constructing
large value and technologically complex long-duration projects. The
company has a fleet of well-maintained specialised equipment in its
portfolio, a qualified and experienced senior management, and
technical collaborations, boosting its project execution
capabilities.
Credit challenges
* High leverage; stretched liquidity position and dependence on
asset monetization: HCC has high leverage as reflected in high
TOL/TNW, which stood at 9.6 times as on March 31, 2023 (FY2022:
21.5 times). It is expected to remain at elevated levels in the
near term. Its receivables and work-in-progress remain elevated due
to ongoing arbitration/claims pending with the clients. The company
has been able to manage the working capital requirements, partly by
availing extended credit period from suppliers/sub-contractors and
mobilisation advances from clients. Going forward, any material
deterioration in the working capital intensity from the anticipated
levels can impact HCC's liquidity position and will be a key rating
sensitivity. With implementation of the RP in September 2022
(wherein part debt of HCC was carved out and transferred to PRPL),
the debt repayment schedule was extended with modest near-term
obligations and a ballooning repayment structure. In the backdrop
of improved operating performance and modest repayment obligations,
the debt coverage metrics are satisfactory in the near term. HCC is
in the process of monetising some of its non-core investments. In
the last one year, the company realised INR325 crore, which was
utilised for debt repayment as well as towards operational cash
flow mismatches. ICRA notes that realisation from claims and awards
has remained slower than the earlier expected levels. The company
is expecting realisation of about INR288 crore from awards and
claims in the next 18 months. Timely realisation of these funds
remains critical, given the step up in repayments starting FY2025.
Going forward, timely monetisation of non-core assets and
realisation of awards remains remain crucial to materially improve
its liquidity position. Company is also planning to realize awards
worth INR220 crore under Vivad se Vishwas II, which if materialize,
should help in improving its liquidity position. In absence of
sanctioned fund-based working capital lines, it is maintaining over
INR300 crore of liquidity on a sustained basis. The company is in
discussions for enhancement in fund-based working capital limits,
timely sanctioning of which would be a key monitorable. ICRA draws
comfort from the cushion available in the form of unutilised
arbitration/court BGs that could be used to realise some of the
awards pending in the higher courts, in case of funding shortfall.
In the last one year, lenders have permitted HCC to utilise ~Rs. 65
crore of court BGs to avail the arbitration money, which was used
to prepay the fund-based credit facilities of the respective
lenders, whosoever have sanctioned such BGs.
* Moderate execution risk; sizeable contingent liabilities and risk
of BG invocation: HCC has provided guarantees for the entire debt
(INR2,854 crore) that got transferred to PRPL, as a part of RP
plan. Hence, any crystallisation of those guarantees will impact
its credit profile. However, PRPL has realised awards of ~Rs. 51
crore in 8M FY2024 and the debt repayments would commence from
FY2027 providing satisfactory pay-in and pay-out gap between
realisation of award proceeds and debt obligations. The rating
considers the company's exposure to sizeable contingent liabilities
in the form of BGs, mainly for contractual performance,
mobilisation advance and security deposits. The rating is also
constrained by moderate execution risks as about 16% of the order
book as on September 30, 2023 is in the preliminary/early stage of
execution with less than 25% progress. Notwithstanding HCC's strong
execution capabilities, any sizeable invocation of performance
guarantees would affect the company's liquidity and financial risk
profile. In this regard, ICRA takes comfort from the non-invocation
of BG in last twelve months ending November 2023. With improved
operating performance, the company is able to ramp-up execution in
various ongoing projects, which has led to reduction in the number
of stuck projects, which mitigates the BG invocation risk.
* Heightened competition, input costs pike could exert pressure on
profitability: The domestic civil construction industry is
fragmented and highly competitive, evident from the moderate bid to
success ratios. Garnering adequate number of projects and ensuring
their movement remains the key for optimal use of resources and
ultimately profitability. The competition has increased because of
the relaxation in the bidding criteria. This, coupled with the rise
in input cost, could exert pressure on HCC's profitability. ICRA
notes that there is a built-in price escalation clause in most of
the contracts, which protects the operating margin from raw
material price fluctuation risk to some extent.
Environment and Social Consideration
HCC operates at multiple project sites at any point of time.
Therefore, the risk of business disruptions on account of physical
climate risks is low. Given that construction activity generates
air pollution, entities in this sector remain exposed to the risk
of temporary bans on operations in cities that are more sensitive
to deteriorating air quality. Construction entities could also face
social risks stemming from the health and safety concerns of
workers, which could invite regulatory or legal action, besides
reputational harm. HCC has a track record of maintaining healthy
relationships with its workers/employees, including contractual
labour with no material incidents of a slowdown in execution
because of workforce management issues.
Liquidity position: Stretched
In absence of sanctioned fund-based working capital lines, HCC
relies on on-balance sheet liquidity and elongated credit support
from its creditors to support its working capital cycle. HCC had
unencumbered cash and bank balance of INR317.1 crore as on
September 30, 2023. It is expected to maintain cash and liquid
investment of over INR300 crore, on a sustained basis, to support
its working capital and other operational requirements.
Nonetheless, given the increasing scale of operations and
consequent working capital requirement, along with sizeable debt
repayment obligations (~INR950 crore till March 2025) in the next
12-18 months, timely realisation of claims, asset monetisation, and
improvement in the working capital intensity will remain crucial
for the company to improve its liquidity. Company is also planning
to realize awards worth INR220 crore under Vivad se Vishwas II,
which if materialize, should help in improving its liquidity
position.
Rating sensitivities Positive factors – ICRA could upgrade the
rating in case of a sustained improvement in construction revenue
while maintaining its margins, and realisation from non-core assets
sale/awards resulting in improved liquidity and coverage metrics.
Negative factors – Negative pressure on HCC's rating could arise
if there is slowdown in execution or sustained pressure in
earnings. Moreover, any delay in realisation of awards/non-core
asset sale or worsening in working capital cycle, impacting the
liquidity position will be a credit negative.
Incorporated in 1926, Hindustan Construction Company Limited (HCC)
is the flagship company of Hindustan Construction Company Group
(HCC Group) and is involved in engineering and construction of
infrastructure projects such as dams, tunnels, bridges, hydro,
nuclear and thermal power plants, expressways and roads, marine
works, water supply, irrigation systems and industrial buildings
across the country. The HCC Group's principal business areas can be
classified into four broad verticals: 1) engineering and
construction (E&C), 2) infrastructure development, 3) real estate
and 4) urban development and management. While the E&C vertical is
undertaken by HCC, the rest of the activities are carried out
through separate subsidiary companies. It is one of the oldest
infrastructure development companies in India, founded by Mr. Seth
Walchand Hirachand.
INDALC SPIRITS: Ind-Ra Moves B+ Issuer Rating to NonCooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Indalc Spirits Pvt. Ltd. to the non-cooperating category as per Ind
Ra's policy on Issuer Non-Cooperation, following non-submission of
No Default Statement continuously for 3 months despite continuous
requests and follow-ups by the agency and also IND-Ra's inability
to validate timely debt servicing through other sources it
considers reliable. No Default Statement in the format prescribed
by SEBI is required to be shared by the issuer every month as a
confirmation that all financial obligations are being serviced on
time. Investors and other users are advised to take appropriate
caution while using these ratings. The rating will now appear as
'IND B+/Stable (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR740 mil. Term loan due on September 1, 2030 migrated to
non-cooperating category with IND B+/Stable (ISSUER NOT
COOPERATING) rating; and
-- INR220 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND B+/Stable (ISSUER NOT
COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating.
Company Profile
Incorporated in August 2020, ISPL is setting up a 100 kilo liters
per day grain-based distillery plant along with a 3MW captive power
plant at Saptasajya village in Odisha. The registered office is in
Bhubaneswar, Odisha, and the company is likely to commence
operations from September 2024.
K MOHAN: ICRA Keeps D Debt Ratings in Not Cooperating Category
--------------------------------------------------------------
ICRA has kept the long-term and short-term ratings for the bank
facilities of K Mohan & Company (Exports) Private Limited in the
'Issuer Not Cooperating' category. The ratings are denoted as
"[ICRA]D ISSUER NOT COOPERATING/[ICRA]D ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short Term- (68.00) [ICRA]D; ISSUER NOT COOPERATING;
Interchangeable Rating Continues to remain under
'Issuer Not Cooperating'
Category
Short-term– 53.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term/ 3.50 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Unallocated remain under 'Issuer Not
Cooperating' Category
Long Term- (10.00) [ICRA]D; ISSUER NOT COOPERATING;
Interchangeable Rating Continues to remain under
'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with K Mohan & Company (Exports) Private Limited, ICRA has been
trying to seek information from the entity so as to monitor its
performance. Further, ICRA has been sending repeated reminders to
the entity for payment of surveillance fee that became due. Despite
multiple requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Nilkanth Cotton Industries (NCI) was set up as a partnership firm
in the year 2014. It is engaged in the business of manufacturing
cotton bales and cotton seed oil through ginning and pressing of
raw cotton (kapas) and cotton seed crushing activity. The firm's
manufacturing facility is located at Rajkot, Gujarat and is
equipped with 24 ginning, 1 pressing machine and 5 expellers for
crushing of cotton seeds with the processing capacity of ~18,144 MT
of raw cotton and 2160 MT of seeds annually.
KARNA INTERNATIONAL: ICRA Keeps B Debt Rating in Not Cooperating
----------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Karna
International (KI) in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]B (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 12.50 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Karna International, ICRA has been trying to seek information
from the entity so as to monitor its performance. Further, ICRA has
been sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been moved to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
KI was established in 1992 as a partnership concern with Mr.
Karnajit Lamba and Ms. Monica Lamba as partners. The firm is a
Government of India-recognised export house and an ISO 9001:2008
certified unit. The firm manufactures cold and hot forged bolts,
nuts, washers, fasteners, anchors, brackets and other equipment,
which are used in hardware item manufacturing, and architectural
and construction activities. Its manufacturing facility is located
in the Ludhiana district of Punjab. The firmderives most of its
revenues from export sales, primarily in the UK.
M.M. VORA: ICRA Keeps B+ Debt Rating in Not Cooperating Category
----------------------------------------------------------------
ICRA has kept the long-term rating of M.M. Vora Automobiles Private
Limited in the 'Issuer Not Cooperating' category. The rating is
denoted as [ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 24.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with M.M.Vora Automobiles Private Limited, ICRA has been trying to
seek information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
M.M. Vora Automobiles Private Limited (MMVAPL) is promoted and
managed by the Vora family of Vadodara (Gujarat). At present,
MMVAPL is involved in the automobile dealership of Mahindra &
Mahindra Limited (M&M) and have showrooms and servicing facilities
in Vadodara,Anand and Nadiad in Gujarat. Prior to becoming dealers
for M&M, the promoters had varied business interest spanning across
business such as sale of spare parts, transportation business, and
sub-dealership Of Ford Motors & Lambretta Scooters etc.
MCNALLY BHARAT: NCLT Approves Company's Acquisition by BTL EPC
--------------------------------------------------------------
The Economic Times of India reports that the bankruptcy court in
Kolkata has approved the acquisition of Khaitan family-promoted
listed engineering firm McNally Bharat Engineering Co by BTL EPC
Ltd.
McNally Bharat had admitted liabilities of INR5,015 crore. The
lenders have approved the Kolkata-based EPC firm's over
INR441-crore resolution plan with 90.06% votes in favor, the report
relates.
Originally, the Kolkata bench of the National Company Law Tribunal
had admitted the company under the corporate insolvency resolution
process (CIRP) in 2020 following an application filed by its
lender, Bank of India.
When the company's resolution professional (RP) Ravi Sethia invited
the bids, four bidders - Amit Metaliks Ltd, Nalwa Steel & Power
Ltd, BTLEPC Ltd and Rashmi Metaliks Ltd - showed interest in
acquiring the company, the report says. But only two bidders - BTL
EPC Ltd and OP Jindal Group-promoted Nalwa Steel & Power -
participated in the second challenge process, in which nine rounds
of bidding were conducted, ET notes.
McNally Bharat Engineering Co Ltd engages in engineering turnkey
project execution. It belongs to the B. M. Khaitan group.
MILIND PULSES: ICRA Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
ICRA has kept the long-term ratings for the bank facilities of
Milind Pulses in the 'Issuer Not Cooperating' category. The ratings
are denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 5.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Milind Pulses, ICRA has been trying to seek information from
the entity so as to monitor its performance. Further, ICRA has been
sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Milind Pulses started its operations in 2000-01 and is engaged in
trading and manufacturing of Tur Dal, Lakhodi Dal and Chana Dal
driven primarily by its healthy demand. The proprietor- Mr. Milind
and his father Mr. Vijay have an experience of over 12 years in the
pulses processing industry. The firm has a combined production
capacity of 18,000 MTPA or 600 quintals of Tur Dal, Lakhodi Dal and
Chanal Dal with the manufacturing facility located at Nagpur.
NISHI FOREX: ICRA Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
ICRA has kept the long-term and Short-term rating of Nishi Forex &
Leisure Pvt. Ltd. in the 'Issuer Not Cooperating' category. The
rating is denoted as [ICRA]D/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short-term 3.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
'Issuer Not Cooperating'
Category
Long-term/ 20.00 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Unallocated remain under 'Issuer Not
Cooperating' Category
Long-term– 1.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term– 16.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Nishi Forex & Leisure Pvt. Ltd., ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Incorporated in August 2014, Nishi Forex & Leisure Private Limited
is an Authorised Dealer II (AD II) license holder based in
Bangalore. Nishi primarily caters to foreign exchange needs of
corporate clients, retail customers and wholesale customer. Ithad
initially received the FFMC license from RBI in December 2014
before receiving the AD II licence in May 2018 which has enabled it
to undertake remittance related activities directly. While it
started its operations in Bangalore, it currently has branch
offices in Andhra Pradesh, Telangana, Tamil Nadu, Kerala and Delhi.
The company also provides air ticketing, tours and other travel
related services.
SCR NIRMAN: ICRA Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------
ICRA has kept the Long-Term and short-term ratings of Scr Nirman
Private Limited in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]B+(Stable)/[ICRA]A4: ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 3.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term/ 7.00 [ICRA]B+(Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Non-Fund Based Rating Continues to remain
Others under issuer not cooperating
category
As part of its process and in accordance with its rating agreement
with Scr Nirman Private Limited, ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
SCR Nirman Private Limited (SCRNPL) was incorporated in 2009 by Mr.
S. Chenna Reddy together with his family members on board. The
company's constitution was changed from proprietorship to private
limited in 2009. The company is a recognized contractor for Indian
Railways in the South Zone and is involved in laying railway tracks
and performing other associated works like earthwork formation,
supplying ballast, constructing minor and major railway bridges.
VASU COCO: ICRA Keeps D Debt Rating in Not Cooperating Category
---------------------------------------------------------------
ICRA has kept the Long-term rating for the bank facilities of Vasu
Coco Resorts Private Limited in the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 43.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Vasu Coco Resorts Private Limited, ICRA has been trying to
seek information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Vasu Coco Resorts Private Limited owns the 60-room 5-star property
'Vasundhara Sarovar Premiere' hotel in Vayalar, Kerala; which is
managed by Sarovar Hotels and Resorts Private Limited. The property
offers a mix of rooms, which include regular rooms, suites,
heritage rooms and cottages, floating cottages and also two-house
boats. The property also has three F&B outlets, which includes a
multi cuisine restaurant, a sea food specialty restaurant and a
poolside cafe. The property also offers other services like bar,
spa/health centre and boating services.
VENKATA UMASHANKAR: ICRA Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
ICRA has kept the long-term rating of Sri Venkata Umashankar
Spintex Private Limited in the 'Issuer Not Cooperating' category.
The rating is denoted as [ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 33.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Sri Venkata Umashankar Spintex Private Limited, ICRA has been
trying to seek information from the entity so as to monitor its
performance. Further, ICRA has been sending repeated reminders to
the entity for payment of surveillance fee that became due. Despite
multiple requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Sri Venkata Umashankar Spintex Private Limited, incorporated on 4th
May 2010 with an object to set up Cotton Spinning Mill with 20,160
spindles. The company is promoted by Sri Chundur Naga
Veeranjaneyulu and his family members who have been involved in the
cotton industry for more than 2 decades. The company has successful
ramp up of operations in July 2013 to manufacturing cotton yarn of
32s count.
VINDHYAVASINI STEEL: Liquidation Process Case Summary
-----------------------------------------------------
Debtor: Vindhyavasini Steel Products Private Limited
Flat No. 101 OG-III
Oberoi Garden, Thakur Village
Off Western Express Highway
Kandivali (E)
Mumbai City, Maharashtra - 400101
Liquidation Commencement Date: October 17, 2023
(Date of Order)
Date of Intimation to Liquidator: Dec. 7, 2023
The copy of the Order was received by the
Liquidator only on Dec. 7, 2023 through email
by the Honorable NCLT.
Court: National Company Law Tribunal Mumbai Bench-IV
Liquidator: Mr. Rajesh Ramesh Kamath
301 A Wing Green Gagan Near Lokhandwala
Akurli Road Kandivali East, Mumbai Suburban,
Maharashtra, 400101
Email: iprrkamath@gmail.com
Email: cirp.vvspl@gmail.com
Last date for
submission of claims: January 6, 2024
ZENITH EXPORTS: ICRA Keeps B+/A4 Debt Ratings in Not Cooperating
----------------------------------------------------------------
ICRA has kept the long-term and short-term rating of Zenith Exports
Limited in the 'Issuer Not Cooperating' category. The rating is
denoted as [ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 22.00 [ICRA]B+(Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Non-Fund Based Rating Continues to remain
under issuer not cooperating
category
As part of its process and in accordance with its rating agreement
with Zenith Exports Limited, ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
ZEL was incorporated in 1981 as a public limited company. At
present, it has two separate manufacturing divisions, namely Zenith
Main Division (ZM) and Zenith Textiles (ZT), while the
manufacturing operations of another division, Zenith Spinners (ZS),
was shut down in November 2015. ZM is involved in the export of
silk fabrics, industrial leather hand gloves and other leather
products, which are manufactured in Kolkata, West Bengal. ZT is a
100% export-oriented unit. Its manufacturing facility is located at
Nanjangud, Karnataka, which produces silk and velvet fabrics.
===============
M A L A Y S I A
===============
CAPITAL A: Applies for More Time to Submit Regularisation Plan
--------------------------------------------------------------
The Star reports that Capital A Bhd is seeking an extension of time
from Bursa Malaysia Securities Bhd to submit its regularisation
plan.
In a Bursa filing on Dec. 22, the company said it is seeking an
extension until June 30, 2024, The Star relates.
The exchange had previously granted Capital A until Dec. 31, 2023
to submit its regularisation plan to the relevant regulatory
authorities.
About Capital A
Capital A Bhd, formerly known as AirAsia Group Bhd, provides
low-cost air carrier service. The company provides services on
short-haul, point-to-point domestic and international routes.
Capital A, headquartered in Malaysia, operates from hubs in
Malaysia, Thailand, Indonesia, Philippines and India. The airline's
Malaysia and Thailand operations are undertaken via AirAsia Bhd and
Thai AirAsia Co Ltd while AirAsia Group's Indonesia and Philippines
operations are managed under PT Indonesia AirAsia and Philippines
AirAsia Inc.
As reported in the Troubled Company Reporter-Asia Pacific on Jan.
18, 2022, Capital A is in the midst of formulating a plan to
regularize its financial condition to address its Practice Note 17
(PN17) status.
Capital A triggered the PN17 suspended criteria in July 2020 after
its external auditors, Ernst & Young PLT, issued an unqualified
audit opinion with material uncertainty relating to going concern
in respect of its audited financial statements for the financial
year ended Dec. 31, 2019 (FY19) and its shareholders' equity on a
consolidated basis was 50% or less of its share capital.
Capital A also triggered the prescribed criteria pursuant to
Paragraph 8.04 and Paragraph 2.1(a) of PN17 of Bursa's Main Market
Listing Requirements (Main LR), where AirAsia's shareholders'
equity on a consolidated basis was 25% or less of its share capital
and the shareholders' equity is less than MYR40 million based on
the audited financial statements for FY20.
Following relief measures introduced by Bursa and the Securities
Commission Malaysia, Capital A was not classified as a PN17 listed
issuer and was not required to comply with the obligations under
Paragraph 8.04 and PN17 of the Main LR for a period of 18 months
from the date of the first relief announcement, theedgemarkets.com
said. The date of the first relief announcement was July 8, 2020,
and the 18-month period ended on Jan. 7, 2022. Under the relief
measures, companies that triggered any of the suspended criteria
between April 17, 2020 and June 30, 2021, would not be classified
as a PN17 and Guidance Note 3 (GN3) company for 12 months.
In October 2023, Capital A has requested for an extension to submit
its regularisation plan to Bursa Malaysia, making it the third
request made by the financially-distressed company. In a filing to
the bourse, Capital A said it had sought for an extension until
Dec. 31, 2023.
=====================
N E W Z E A L A N D
=====================
COMPLEX FACADE: Creditors' Proofs of Debt Due on Feb. 2
-------------------------------------------------------
Creditors of Complex Facade NZ Limited and Lanj Cladding/Building
Limited are required to file their proofs of debt by Feb. 2, 2024,
to be included in the company's dividend distribution
Complex Facade NZ Limited commenced wind-up proceedings on Dec. 12,
2023.
Lanj Cladding/Building Limited commenced wind-up proceedings on
Dec. 18, 2023.
Kevin John Davies of Principle Insolvency Limited Partnership was
appointed as liquidator of the companies on Dec. 18, 2023.
Q CARD: Fitch Affirms 'Bsf' Rating on Two Tranches, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has affirmed the ratings on notes issued by The New
Zealand Guardian Trust Company Limited in its capacity as trustee
of Q Card Trust. The transaction, a securitisation of New Zealand
credit card receivables, is an asset-backed note programme
featuring a multiclass structure that purchases eligible
receivables from related entities of Humm Group Limited (hummgroup)
on a revolving basis.
Entity/Debt Rating Prior
----------- ------ -----
Q Card Trust
A-2021-3 NZFPFD1042R8 LT AAAsf Affirmed AAAsf
A-2021-4 NZFPFD1043R6 LT AAAsf Affirmed AAAsf
A-2022-1 NZFPFD1044R4 LT AAAsf Affirmed AAAsf
A-2023-1 NZFPFD1046R9 LT AAAsf Affirmed AAAsf
A-2023-2 NZFPFD1049R3 LT AAAsf Affirmed AAAsf
B-2019-2 NZFPFD1035R2 LT AAsf Affirmed AAsf
B-2023-1 NZFPFD1045R1 LT AAsf Affirmed AAsf
B-2023-2 NZFPFD1047R7 LT AAsf Affirmed AAsf
B-2023-3 NZFPFD1051R9 LT AAsf Affirmed AAsf
C-2019-2 NZFPFD1036R0 LT Asf Affirmed Asf
C-2023-1 NZFPFD1048R5 LT Asf Affirmed Asf
C-2023-2 NZFPFD1052R7 LT Asf Affirmed Asf
D-2019-1 NZFPFD1037R8 LT BBBsf Affirmed BBBsf
D-2023-1 NZFPFD1053R5 LT BBBsf Affirmed BBBsf
E-2019-1 NZFPFD1038R6 LT BBsf Affirmed BBsf
E-2023-1 NZFPFD1054R3 LT BBsf Affirmed BBsf
F-2019-1 NZFPFD1039R4 LT Bsf Affirmed Bsf
F-2023-1 NZFPFD1055R0 LT Bsf Affirmed Bsf
VFN LT AAAsf Affirmed AAAsf
KEY RATING DRIVERS
Stable Steady-State Performance: Performance has been stable. The
12-month average gross charge-offs were 4.3% as of end-October
2023, against 3.9% at end-October 2022. The monthly payment rate
(MPR), a measure of how quickly consumers are paying off their
credit-card debt, has increased to 11.7%, from 11.2%, in the last
12 months. Yield has increased to a 12-month average of 23% from
20%.
Transaction performance is supported by New Zealand's tight labour
market, despite interest rates increasing from October 2021 through
May 2023. GDP growth for the year to September 2023 was 1.3%, while
unemployment was 3.9% at end-September 2023. Fitch expects GDP
growth to remain subdued in 2024 with unemployment reaching 4.8%,
reflecting elevated inflation combined with a slowdown in consumer
spending. Fitch expects interest rates to remain at current levels
until end-2024.
A summary of the steady states and rating stresses is shown below;
these remain unchanged from its last review:
Charge-offs: 4.5%
MPR: 7.5%
Gross yield: 17.00%
Purchase rate: 100%
Rating Stresses:
Ratings: AAAsf / AAsf / Asf / BBBsf / BBsf / Bsf
Charge-offs (increase): 4.75x / 4.00x / 3.10x / 2.40x / 1.90x /
1.30x
MPR (% decrease): 35.00% / 30.00% / 25.00% / 20.00% / 10.00% /
5.00%
Gross yield (% decrease): 35.00% / 30.00% / 25.00% / 20.00% /
15.00% / 10.00%
Purchase rate (% decrease): 90.00% / 85.00% / 75.00% / 65.00% /
55.00% / 45.00%
Originator and Servicer Risk Mitigated: Fitch reviewed hummgroup's
originating and servicing capabilities and found that the
operations were comparable with those of other credit card
providers in Australia and New Zealand.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
The transaction's performance may be affected by changes in market
conditions and the economic environment. Weakening asset
performance is strongly correlated with increasing levels of
delinquencies and defaults that could reduce credit enhancement
available to the notes.
Downgrade Sensitivity:
The sensitivity of the ratings to decreased yields, increased
charge-offs and decreased MPRs were evaluated over the life of the
transaction. The model indicates that note ratings are sensitive to
an increase in defaults and a reduction in MPRs, with less
sensitivity to lower yields.
Please see "Fitch Affirms Q Card Trust; Outlook Stable" for the
sensitivities
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
An improvement in long-term asset performance, such as decreased
charge-offs, increased MPR or increased portfolio yield, driven by
a sustainable positive change of underlying asset quality, would
contribute to positive revisions in Fitch's asset assumptions. This
could positively affect the notes' ratings. Increased credit
enhancement ratios, which are able to fully compensate for credit
losses and cash flow stresses commensurate with higher rating
scenarios, all else being equal, would also be positive for the
ratings.
Some of the outstanding subordinate tranches may be able to support
higher ratings, based on the output of Fitch's proprietary cash
flow model. Enhancement levels are set to maintain a constant
rating level per class of issued notes and may provide more than
the minimum enhancement necessary to retain issuance flexibility,
since the credit card programme is set up as a continuous funding
programme and requires that any new issuance or note reductions do
not affect the rating of existing tranches. Therefore, Fitch may
decide not to assign or maintain ratings above the current
outstanding ratings in anticipation of future issuance or
reductions.
Please see "Fitch Affirms Q Card Trust; Outlook Stable" for the
sensitivities
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
and the transaction. Fitch has not reviewed the results of any
third-party assessment of the asset portfolio information as part
of its ongoing monitoring.
As part of its ongoing monitoring Fitch reviewed a small targeted
sample of hummgroup's origination files and found the information
contained in the reviewed files to be adequately consistent with
the originator's policies and practices and the other information
provided to the agency about the asset portfolio.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis, according to its applicable rating methodologies,
indicates that it is adequately reliable.
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.
RESTORATION HOLDINGS: Creditors' Proofs of Debt Due on Jan. 16
--------------------------------------------------------------
Creditors of Restoration Holdings Limited are required to file
their proofs of debt by Jan. 16, 2024 to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Dec. 14, 2023.
The company's liquidator is:
Brenton Hunt
PO Box 13400
City East
Christchurch 8141
XIAOLI'S CHINESE: Creditors' Proofs of Debt Due on Jan. 28
----------------------------------------------------------
Creditors of Xiaoli's Chinese Medicine Clinic Limited are required
to file their proofs of debt by Jan. 28, 2024, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on Dec. 18, 2023.
The company's liquidator is:
Kevyn Andrew Botes
i-Business Recovery Limited
PO Box 302612, North Harbour
Auckland
=================
S I N G A P O R E
=================
INYA TRADING: Commences Wind-Up Proceedings
-------------------------------------------
Members of Inya Trading Pte Ltd on Dec. 18, 2023, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidators are:
Abuthahir Abdul Gafoor
Yessica Budiman
AAG Corporate Advisory
144 Robinson Road
#14-02 Robinson Square
Singapore 068908
KEPPEL URBAN: Creditors' Proofs of Debt Due on Jan. 22
------------------------------------------------------
Creditors of Keppel Urban Solutions Pte. Ltd. are required to file
their proofs of debt by Jan. 22, 2024, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Dec. 19, 2023.
The company's liquidators are:
Leow Quek Shiong
Gary Loh Weng Fatt
c/o BDO Advisory Pte. Ltd.
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
RH DEVELOPMENTS: Creditors' Proofs of Debt Due on Jan. 22
---------------------------------------------------------
Creditors of RH Developments Pte. Ltd. are required to file their
proofs of debt by Jan. 22, 2024, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Dec. 18, 2023.
The company's liquidators are:
Lau Chin Huat
Yeo Boon Keong
c/o Technic Inter-Asia Pte Ltd
50 Havelock Road #02-767
Singapore 160050
TA STRATEGIC: Creditors' Proofs of Debt Due on Jan. 22
------------------------------------------------------
Creditors of TA Strategic Pte. Ltd. are required to file their
proofs of debt by Jan. 22, 2024, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Dec. 18, 2023.
The company's liquidators are:
Chee Fung Mei
Loke Chiew Mun
110 Middle Road #05-03
Singapore 188968
TOH & CREATE: Creditors' Proofs of Debt Due on Jan. 22
------------------------------------------------------
Creditors of Toh & Create (S) Pte. Ltd. are required to file their
proofs of debt by Jan. 22, 2024, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Dec. 20, 2023.
The company's liquidators are:
Chee Fung Mei
Loke Chiew Mun
110 Middle Road #05-03
Singapore 188968
=================
S R I L A N K A
=================
HELA APPAREL: Fitch Affirms & Withdraws 'BB+(lka)' National Rating
------------------------------------------------------------------
Fitch Ratings has affirmed Sri Lanka-based Hela Apparel Holdings
PLC's National Long-Term Rating at 'BB+(lka)' with Negative
Outlook. At the same time, Fitch has withdrawn the rating.
The affirmation and Negative Outlook reflect its expectation that
interest coverage will stay weak in the next 12 months, leading to
continued strain on liquidity. Fitch expects Hela's EBITDA losses
to extend into the next 12 months, leaving the company entirely
reliant on the success of its turnaround strategy and support of
external lenders.
Fitch Ratings has chosen to withdraw the ratings on Hela for
commercial reasons. Therefore, Fitch will no longer provide ratings
or analytical coverage for Hela.
KEY RATING DRIVERS
Significant Financial Statement Adjustments: Fitch believes Hela's
financial transparency has weakened after the major adjustment of
its annual financial accounts during its FY23 external audit. Hela
says that during its migration to a new enterprise resource
planning system in April 2023, the management identified an
overstatement of raw material costs in work in progress, which
resulted in a large inventory write-down of around USD5 million for
FY23, but that its internal controls have improved since.
Weak Cashflows; Interest Coverage: Fitch expects fund flow from
operations (FFO) to remain negative in FY24-FY26 (FY23: negative
USD14 million), as the pace of recovery in Hela's EBITDA in the
next few years is unlikely to be sufficient to cover interest
costs. This is underpinned by its belief that demand for apparel
imports into the US and the EU - Hela's key markets - is likely to
remain weak as elevated inflation and interest rates pressure
consumer purchasing power. The company has embarked on a cost
saving strategy, but execution risks are high.
Tight Liquidity: Hela had USD11.4 million in cash at end-September
2023, against an estimated USD16 million in interest payments due
in the 12 months, which it is unlikely to meet with internally
generated cash. It has another USD5 million in maturing term debt
during the period and over USD70 million in short-term
working-capital lines due. Hela expects lenders to support rolling
over its maturing working-capital debt and allowing it to draw down
on uncommitted credit lines of around USD70 million as of 30 June
2023. However, challenges in improving its EBITDA could weaken
lender access.
Uncertain Demand Environment: Fitch forecasts Hela's revenue to
decline by more than 20% in FY24 (1H24: -29%), following weak
demand from its key markets in the US and Europe due to elevated
inflation and interest rates. The regions contributed 58% and 38%,
respectively, to Hela's revenue in 1Q24. Fitch expects revenue to
improve by 5% in FY25, in line with its forecast for easing
inflation and moderating interest rates in the US and eurozone in
2024-2025.
Heightened Strategy Execution Risk: Hela is undertaking a strategy
to cut overhead costs that is subject to execution risk. It is
switching to single shift operations in major factories, from
double shifts; enhancing the supply-chain strategy by reducing lead
times, and rationalising selling general & administrative costs.
Hela scaled up its operation over FY22-FY23 to cater to heightened
demand, but if the current period of weak demand persists, it may
decide to scale down to secure its margin and maintain its
long-term business profile.
High Leverage: Fitch forecasts leverage to remain above 10x in
FY24-FY26 (FY23: 24x), as Hela resorts to external financing for
its operational requirements and debt servicing in the next 12-18
months amid limited internal cash generation. There company does
not have major investment needs in FY24-FY26, as Fitch forecasts
capex of around USD2.5 million-3.5 million for maintenance, subject
to funding access. The need for working capital will also be
limited considering the weak sales.
Small Scale; Long-Term Customer Relationship: Hela business scale
is small relative to larger apparel manufacturers, with EBITDA of
less than USD15 million. Its product segments are in intimate wear
(1Q24 revenue contribution: 54%), kids wear (23%) and active wear
(24%). The company's strategy is careful customer selection and a
focus on building long-term and profitable customer relationships,
which include some of the world's leading apparel brands. The
top-10 customers generated an average of 80% of Hela's total
revenue in FY20-FY23 (1Q24: 83%).
DERIVATION SUMMARY
Hela's rating is two notches below Sri Lanka-based power producer,
Resus Energy PLC (BBB(lka)/Negative). Resus faces heightened
liquidity risk due to the weak credit profile of its sole
counterparty, Ceylon Electricity Board (CEB, BB+(Ika)/Stable).
However, positive developments at CEB, including raised electricity
tariffs, have resulted in higher payments to Resus, bringing down
its receivable months to 10, from 13 at FYE23. Consequently, Fitch
expects Resus's interest coverage to remain adequate at around
1.3x-1.6x in the next one to two years, compared with Hela's
inability to meet its interest costs from internally generated
funds.
Hela's rating is three notches above that of Kotagala Plantations
PLC (B+(lka)/Negative). Kotagala faces weak liquidity and high
credit risk due to limited funding access, volatile operating cash
flow and limited medium-term prospects stemming from the inherent
weaknesses in its tea and rubber plantation businesses. The company
still faces challenges in securing adequate credit lines to fund
its operation, despite its recent debt restructuring.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer:
- Demand to continue to weaken in FY24, translating into a more
than 20% drop in sales (1Q24: 26% drop), then slowly improving by
5% in FY25.
- EBITDA loss in FY24 as a result of lower sales generation and
higher administrative expenses.
- No investment capex in FY24-FY26, only maintenance capex of
USD2.5 million-3.5 million a year
- Interest rate on the new US dollar debt at around 11%-12% for
FY24-FY26.
RATING SENSITIVITIES
No longer relevant as the ratings are being withdrawn.
LIQUIDITY AND DEBT STRUCTURE
Weak Liquidity, Funding Risks: Hela's liquidity is weak. The
company is likely to remain reliant on cash on hand and undrawn,
but uncommitted, credit lines to fund its operating losses and
interest payments. Its ability to access undrawn lines hinges on
the success of its turnaround strategy to cut costs and improve
cash flow, but Fitch believes this carries high execution risks.
ISSUER PROFILE
Hela is an apparel manufacturer with diversified operations in Sri
Lanka, Kenya, Ethiopia and Egypt. Its key products, including
intimate, kids, and active wear, are mainly sold to global luxury
and lifestyle brands and European retailers.
Entity/Debt Rating Prior
----------- ------ -----
Hela Apparel
Holdings PLC Natl LT BB+(lka) Affirmed BB+(lka)
Natl LT WD(lka) Withdrawn BB+(lka)
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
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Copyright 2023. All rights reserved. ISSN: 1520-9482.
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