/raid1/www/Hosts/bankrupt/TCRAP_Public/240122.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, January 22, 2024, Vol. 27, No. 16
Headlines
A U S T R A L I A
DISTRICT 360: Second Creditors' Meeting Set for Jan. 25
IE PROJECT: Second Creditors' Meeting Set for Jan. 24
LA TROBE 2024-1: S&P Assigns B (sf) Rating to Class F Notes
LUKUMADES FRANCHISING: Second Creditors' Meeting Set for Jan. 25
MICHAEL HILL: Closes Stores, Sacks Staff as Profit Nosedives
MONTEGO HOMES: First Creditors' Meeting Set for Jan. 25
NED'S BAKE: Second Creditors' Meeting Set for Jan. 24
C H I N A
CHINA AOYUAN: South Square Integral to Successful Scheme Sanction
HUAI'AN TRAFFIC: Fitch Affirms Then Withdraws 'BB' LongTerm IDR
[*] CHINA: Orders Indebted Local Gov'ts. to Halt Some Infra Project
I N D I A
ALLURE TEX: CRISIL Keeps D Debt Ratings in Not Cooperating
ANANTHAPURI EDUC: CRISIL Keeps B+ Debt Rating in Not Cooperating
ASHTANGA EDUCATIONAL: CRISIL Keeps D Ratings in Not Cooperating
AVIAN TECHNOLOGIES: CRISIL Keeps D Ratings in Not Cooperating
BANK OF INDIA: Fitch Assigns BB(xgs)(EXP) Rating to Sr. Unsec Notes
BKG ENTERPRISES: CRISIL Keeps B Debt Rating in Not Cooperating
BLUE DUCK: CRISIL Keeps D Debt Ratings in Not Cooperating
DUNAC AUTOMOBILES: CRISIL Keeps B+ Debt Rating in Not Cooperating
DURLAX INDIA: CRISIL Keeps D Debt Ratings in Not Cooperating
ENERGYWIN TECH: CRISIL Keeps B+ Debt Ratings in Not Cooperating
JAGANNATH CARRIERS: Ind-Ra Cuts Bank Loan Rating to BB
JAI BHAVANI: CRISIL Keeps B+ Debt Ratings in Not Cooperating
KANNATTU FINGOLD: Ind-Ra Withdraws B+ Bank Loan Rating
KLT AUTOMOTIVE: Insolvency Resolution Process Case Summary
LAVASA CORP: NCLAT Rejects Union Bank's Challenge to Darwin's Bid
MAHAVIR ECO: CRISIL Keeps B Debt Ratings in Not Cooperating
MALLEMAALA AGRO: CRISIL Keeps B Debt Ratings in Not Cooperating
MES INTERNATIONAL: CRISIL Keeps D Debt Ratings in Not Cooperating
MOGA MEDICITY: CRISIL Keeps B Debt Ratings in Not Cooperating
MONEYPLUS FINANCIAL: Ind-Ra Affirms BB Bank Loan Rating
MUSADDILAL GEMS: CRISIL Keeps B+ Debt Rating in Not Cooperating
RAGHAVENDRA POULTRY: CRISIL Keeps D Ratings in Not Cooperating
RAJALAKSHMI POULTRY: CRISIL Keeps D Ratings in Not Cooperating
SAMBANDAM SPINNING: Ind-Ra Cuts Bank Loan Rating to BB
SANTHA CASHEW: CRISIL Keeps B+ Debt Ratings in Not Cooperating
SOORAJ AGRO: Ind-Ra Assigns BB- Term Loan Rating, Outlook Stable
SUD PINES: CRISIL Keeps B Ratings in Not Cooperating Category
TRINETRA POULTRIES: CRISIL Keeps B Ratings in Not Cooperating
V.D. SWAMI: CRISIL Keeps D Debt Ratings in Not Cooperating
VADIVEL PYROTECHS: CRISIL Keeps D Debt Rating in Not Cooperating
VM CASHEWS: CRISIL Keeps B Debt Rating in Not Cooperating
VSRK CONSTRUCTIONS: CRISIL Keeps D Ratings in Not Cooperating
WELGA FOODS: CRISIL Lowers Rating on INR14.50cr Cash Loan to B
YOUVAKSHI GODOWNS: CRISIL Keeps B Debt Rating in Not Cooperating
[*] INDIA: Record 273 Stressed Cases Resolved via IBC in 2023
J A P A N
[*] JAPAN: Zombie Firms on Rise as BOJ Paves Way for Rate Hike
M A L A Y S I A
SCOMI ENERGY: Heads of Agreement with Duta Marine Terminated
SCOMI ENERGY: Unveils PN17 Exit Plan With Entry of New Shareholder
N E W Z E A L A N D
BLACK ROBIN: Court to Hear Wind-Up Petition on Feb. 2
DELTA ROOFING: Court to Hear Wind-Up Petition on Feb. 8
MTF OPALA 2023: Fitch Hikes Rating on Class F Notes to 'BBsf'
PIONEER SOLUTIONS: Creditors' Proofs of Debt Due on Feb. 15
PRISHA'S HOSPITALITY: Creditors' Proofs of Debt Due on Feb. 26
WESTWOOD TERRACES: Court to Hear Wind-Up Petition on Feb. 2
P H I L I P P I N E S
MFT GROUP: SEC Orders Group to Stop Illegal Sale of Investments
S I N G A P O R E
CHWEE LAI: Court to Hear Wind-Up Petition on Feb. 2
CLEANSING & MAINTENANCE: Court Enters Wind-Up Order
COMPASS INCORPORATED: Court to Hear Wind-Up Petition on Feb. 2
EAGLEFORCE PTE: Creditors' Proofs of Debt Due on Feb. 19
XING HUA: Court Enters Wind-Up Order
- - - - -
=================
A U S T R A L I A
=================
DISTRICT 360: Second Creditors' Meeting Set for Jan. 25
-------------------------------------------------------
A second meeting of creditors in the proceedings of District 360
Pty Ltd, trading as D360, Live Your Potential Expo, District
Kalgoorlie and Live Your Potential, has been set for Jan. 25, 2024,
at 2:00 p.m. via Zoom virtual meeting facilities.
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. 24, 2024, at 5:00 p.m.
Domenico Alessandro Calabretta and Mathieu Tribut of Mackay Goodwin
were appointed as administrators of the company on Dec. 11, 2023.
IE PROJECT: Second Creditors' Meeting Set for Jan. 24
-----------------------------------------------------
A second meeting of creditors in the proceedings of IE Project
Group Pty Ltd has been set for Jan. 24, 2024, at 10:30 a.m. at the
offices of B&T Advisory, Level 19, 144 Edward Street, in Brisbane,
Qld.
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. 23, 2024, at 4:00 p.m.
Travis Pullen of B&T Advisory was appointed as administrator of the
company on Dec. 15, 2023.
LA TROBE 2024-1: S&P Assigns B (sf) Rating to Class F Notes
-----------------------------------------------------------
S&P Global Ratings assigned its preliminary ratings to eight of the
10 classes of residential mortgage-backed securities (RMBS) to be
issued by Perpetual Corporate Trust Ltd. as trustee for La Trobe
Financial Capital Markets Trust 2024-1. La Trobe Financial Capital
Markets Trust 2024-1 is a securitization of nonconforming and prime
residential mortgages originated by La Trobe Financial Services Pty
Ltd. (La Trobe Financial).
The preliminary ratings reflect the following factors.
The credit risk of the underlying collateral portfolio and the
credit support provided to each class of notes are commensurate
with the ratings assigned. Credit support is provided by
subordination and excess spread. The assessment of credit risk
takes into account La Trobe Financial's underwriting standards and
approval process, and La Trobe Financial's servicing quality.
The transaction's cash flows can meet timely payment of interest
and ultimate payment of principal to the noteholders under the
rating stresses. Key factors are the level of subordination
provided, an amortizing liquidity facility sized at 1.5% of the
note balance, the principal draw function, the yield reserve, the
retention amount built from excess spread before the call date, the
amortization amount built from excess spread after the call date or
upon a servicer default, and the provision of an extraordinary
expense reserve. All rating stresses are made on the basis that the
trust does not call the notes at or beyond the call date, and that
all rated notes must be fully redeemed via the principal waterfall
mechanism under the transaction documents.
S&P said, "We also have factored into our ratings the legal
structure of the trust, which has been established as a
special-purpose entity and meets our criteria for insolvency
remoteness.
"Our ratings also reflect the counterparty support provided by
National Australia Bank Ltd. as liquidity facility provider and
Commonwealth Bank of Australia as bank account provider. The
transaction documents for the liquidity facility and bank accounts
include downgrade language consistent with our "Counterparty Risk
Framework: Methodology And Assumptions" criteria, published on
March 8, 2019, that requires the replacement of the counterparty or
other remedy, should our rating fall below the applicable level."
Preliminary Ratings Assigned
La Trobe Financial Capital Markets Trust 2024-1
Class A1S, A$187.50 million: AAA (sf)
Class A1L, A$397.50 million: AAA (sf)
Class A2, A$75.00 million: AAA (sf)
Class B, A$42.90 million: AA (sf)
Class C, A$18.00 million: A (sf)
Class D, A$12.45 million: BBB (sf)
Class E, A$7.65 million: BB (sf)
Class F, A$5.10 million: B (sf)
Equity 1, A$2.02 million: Not rated
Equity 2, A$1.88 million: Not rated
LUKUMADES FRANCHISING: Second Creditors' Meeting Set for Jan. 25
----------------------------------------------------------------
A second meeting of creditors in the proceedings of Lukumades
Franchising Pty Ltd has been set for Jan. 25, 2024, at 11:00 a.m.
via video conference.
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. 24, 2024, at 5:00 p.m.
Roberto Crispino, Richard Albarran and Brent Kijurina of Hall
Chadwick were appointed as administrators of the company on Dec.
11, 2023.
MICHAEL HILL: Closes Stores, Sacks Staff as Profit Nosedives
------------------------------------------------------------
News.com.au reports that well-known jewellery chain Michael Hill
has revealed it closed six stores in the past six months and
scrapped senior management roles due to tough retail conditions.
In a trading update released by the stock market listed company, it
described the six months to December 31, 2023 as a "challenging
period for the business" as its profitability took a hit and is
estimated to be down 45 to 39 per cent on the same period of 2022,
news.com.au relays.
Of the six "underperforming" stores it closed, one was in regional
WA, one in Queensland, one in Victoria, two in NSW and one in
Canada.
In the statement, the company blamed economic conditions for
"impacting consumer sentiment", adding that its profit margin was
affected by the inflated cost of gold and diamonds, and "aggressive
competitor behaviour", which led to a decision to "reduce operating
costs, including the exit of a number of senior management roles,"
according to news.com.au.
It did not reveal how many staff or which roles were affected.
The company achieved sales of AUD362.8 million during the six
months to December 31, 2023, which was up 4.1 per cent on the same
period of 2022.
But it revealed its gross profit for the period was expected to be
between AUD30-33 million, which represents a fall of 45 to 39 per
cent from the gross profit of AUD54.5 million it posted in the
second half of 2022, news.com.au discloses.
Earlier in 2023 the company bought the more affordable Bevilles
jewellery chain, and it opened four new Bevilles stores in
Australia during the past six months.
"While the first half was definitely a challenging period for our
business with sales for the core Michael Hill brand down, we are
encouraged by our performance against the broader jewellery
sector," news.com.au quotes managing director and CEO Daniel
Bracken as saying.
"Even though consumers continue to monitor their discretionary
spend, our multi-brand strategy puts us in a strong position to
continue taking market share from our competitors as we expand the
Bevilles network and elevate the Michael Hill brand."
The company now operates 272 Michael Hill stores across Australia,
Canada and New Zealand and 30 Bevilles stores in Australia.
Headquartered in Brisbane, Australia, Michael Hill International
Ltd. is a speciality retailer of jewellery in North America and
Oceania. As of April 2023, it operates 281 stores in Australia, New
Zealand and Canada.
MONTEGO HOMES: First Creditors' Meeting Set for Jan. 25
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Montego
Homes Pty Ltd will be held on Jan. 25, 2024, at 11:30 a.m. at the
offices of Cor Cordis, Level 29, 360 Collins Street, Melbourne
Victoria and via virtual meeting technology.
Shaun Matthews and Sam Kaso of Cor Cordis were appointed as
administrators of the company on Jan. 15, 2024.
NED'S BAKE: Second Creditors' Meeting Set for Jan. 24
-----------------------------------------------------
A second meeting of creditors in the proceedings of Ned's Bake Pty
Ltd has been set for Jan. 24, 2024, at 11:30 a.m. via virtual
meeting.
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. 23, 2024, at 5:00 p.m.
Lindsay Stephen Bainbridge and Andrew Reginald Yeo of Pitcher
Partners were appointed as administrators of the company on Oct.
12, 2023.
=========
C H I N A
=========
CHINA AOYUAN: South Square Integral to Successful Scheme Sanction
-----------------------------------------------------------------
South Square barristers, Tom Smith KC and Peter Burgess, have
played key roles in China Aoyuan Group Limited's restructuring of
its offshore debt liabilities.
The sanction of the China Aoyuan Schemes and the Add Hero Schemes
by the Courts of Hong Kong SAR, Cayman Islands, and BVI represents
a pivotal step towards the holistic restructuring of the Group's
material indebtedness.
"This restructuring is testament to Aoyuan's commitment to protect
the interests of all stakeholders of the company and ensuring the
company's capability to continue delivering its projects on time
and safely, as well as sustaining its business operations," South
Square said.
Tom Smith KC and Peter Burgess were instructed by The Linklaters
team: William Liu, Andrew Payne, Denise Fung, Taiki Ki, Jiang Shan,
Christian Felton, Diantha Ho and Kenneth Kong.
About China Aoyuan
China Aoyuan Group Limited, formerly China Aoyuan Property Group
Limited, is an investment holding company principally engaged in
the sales of properties. The Company operates its business through
three segments. The Property Development segment is engaged in the
development and sale of properties. The Property Investment segment
is engaged in the leasing of investment properties. The Others
segment is engaged in hotel operation, the provision of consulting
and management services. Through its subsidiaries, the Company is
also engaged in construction business.
China Aoyuan Group Limited and affiliate Add Hero Holdings Limited
sought creditor protection in the United States under Chapter 15 of
the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 23-12030) on
Dec. 20, 2023.
U.S. Bankruptcy Judge John P. Mastando III presides over the
Chapter 15 proceedings.
HUAI'AN TRAFFIC: Fitch Affirms Then Withdraws 'BB' LongTerm IDR
---------------------------------------------------------------
Fitch Ratings has affirmed China-based Huai'an Traffic Holding Co.,
Ltd.'s (HATH) Long-Term Foreign- and Local-Currency Issuer Default
Ratings (IDR) at 'BB' with a Stable Outlook. At the same time,
Fitch has withdrawn all the ratings.
The affirmation is a result of HATH's steady business profile and
no changes to key rating factors.
Fitch has chosen to withdraw the ratings on HATH for commercial
reasons.
KEY RATING DRIVERS
Status, Ownership and Control: 'Very Strong'
HATH is a limited liability company that is 100% owned and fully
controlled by the Huai'an municipal government. The government
transferred a 30% stake in HATH to the Huai'an State-owned Joint
Investment Development Group, which is fully owned by the Huai'an
municipal government, in June 2023. The new immediate parent acts
only as a nominal shareholder of HATH and does not expect the new
shareholding structure to affect HATH's operations.
The municipality continues to have tight control and oversight of
HATH's personnel appointments and operational, strategic and
financing activities. It approves all of HATH's major events, and
monitors the company's debt and leverage on a regular basis.
Support Track Record: 'Moderate'
The company receives regular annual subsidies to finance its
loss-making public transportation operation. Subsidies amounted to
CNY263 million in 2022, or 86% of EBITDA. HATH also received debt
swaps, an important form of government financial support, totalling
CNY1.54 billion by end-2022. It has obtained special project funds
from the government since 2022 to facilitate Huai'an's
transportation development.
Fitch expects the government's willingness and incentive to provide
timely support to continue. However, this attribute is constrained
by the lack of sizeable financial support, as HATH's financial
profile remains at a weaker level.
Socio-Political Implications of Default: 'Moderate'
HATH is the municipality's only investment and financing platform
for transportation-related infrastructure. It also operates the
city's public transport services, including buses and trams.
However, Fitch believes these essential services can still be
provided even if a default occurs, as other government-related
entities (GREs) or private-sector companies can act as substitutes
for HATH.
Financial Implications of Default: 'Strong'
Fitch believes a default by HATH will have negative consequences
for the creditworthiness of the municipality, affecting financing
availability for other local GREs. HATH is an active issuer in the
domestic bond market and has issued various types of onshore bond
instruments. Bonds accounted for 66% of its total debt by end-2022.
Nevertheless, HATH's operations are small in terms of asset size
relative to the larger GREs in Huai'an. Fitch therefore views the
financial impact of a default as 'Strong'.
Standalone Credit Profile
Fitch derives HATH's Standalone Credit Profile (SCP) from a
combination of 'Weaker' revenue defensibility, 'Midrange' operating
risk and a 'Weaker' financial profile. Fitch expects net
debt/EBITDA to stay at around 75x through to 2027. High leverage
and a weak liquidity profile are the main standalone drivers.
Revenue Defensibility
The 'Weaker' assessment mainly reflects the regulatory regime that
limits Huai'an's pricing power over public transport services,
which puts pressure on the company's profitability. The assessment
has also factored in HATH's geographical concentration in Huai'an
municipality and the positive growth prospects of its construction
business as the city develops.
Operating Risk
Overall operating risk is assessed as 'Midrange', mainly reflecting
HATH's well-identified costs, experienced management and adequate
resources.
Financial Profile
Fitch views HATH as having a weaker financial profile due to its
high leverage ratio and weak liquidity coverage. Fitch projects its
net leverage to stay at around 75x over 2023-2027, as Fitch expects
its debt to continue to grow, while profitability will remain weak
due to the public-service nature of its transportation businesses.
The assessment is consistent with that of other Chinese
transportation developers in Fitch's portfolio. Most of these
companies are capital intensive and rely largely on refinancing and
government support.
Derivation Summary
HATH's ratings are assessed under Fitch's Government-Related
Entities Rating Criteria, reflecting the municipal government's
strong control and the continuous support it provides to the
company. Fitch has also factored in the social-political and
financial implications for the government if HATH were to default.
HATH's SCP is derived from Fitch's assessment of the company's
revenue defensibility, operating risk and financial profile under
its Public Sector, Revenue-Supported Entities Rating Criteria.
Issuer Profile
HATH is Huai'an's only investment and financing platform for
transportation infrastructure such as roads, highways and bridges.
The company also engages in transportation logistics, commercial
trading, property development and other businesses.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Not applicable, as the ratings have been withdrawn.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Not applicable, as the ratings have been withdrawn.
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.
Entity/Debt Rating Prior
----------- ------ -----
Huai'an Traffic
Holding Co., Ltd. LT IDR BB Affirmed BB
LT IDR WD Withdrawn BB
LC LT IDR BB Affirmed BB
LC LT IDR WD Withdrawn BB
[*] CHINA: Orders Indebted Local Gov'ts. to Halt Some Infra Project
-------------------------------------------------------------------
Reuters reports that China has instructed heavily indebted local
governments to delay or halt some state-funded infrastructure
projects, three people with knowledge of the situation said, as
Beijing struggles to contain debt risks even as it tries to
stimulate the economy.
Increasing its efforts to manage $13 trillion in municipal debt,
the State Council in recent weeks issued a directive to local
governments and state banks to delay or halt construction on
projects with less than half the planned investment completed in 12
regions across the country, the sources said, Reuters relays.
According to Reuters, Beijing has been tightening curbs on debt in
recent months to defuse risks to the world's second-largest economy
and its financial stability, while also trying to stimulate growth
that has long relied on infrastructure investments by local
governments.
Infrastructure targeted in the latest directive, which has not been
previously reported, includes expressways, airport reconstruction
and expansion, and urban rail projects, one source said.
Some projects, such as those approved by the central government or
for affordable housing, are exempt, two sources said.
The sources asked not to be identified as the directive was
confidential, Reuters notes.
The State Council Information Office, which handles media queries
for the council, China's cabinet, did not respond to a request for
comment.
Reuters reported in October that the council had restricted the
ability of local governments in the 12 regions to take on debt and
limited the state-funded projects they could launch.
Then it ordered local governments to halt "problematic"
public-private partnership projects and placed other limits on
investment, Reuters reported in November.
=========
I N D I A
=========
ALLURE TEX: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Allure Tex
Trend Private Limited (ATTPL) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Foreign Bill 11 CRISIL D (Issuer Not
Purchase Cooperating)
Foreign Exchange 0.25 CRISIL D (Issuer Not
Forward Cooperating)
CRISIL Ratings has been consistently following up with ATTPL for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of ATTPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ATTPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
ATTPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
ATTPL, incorporated in 2011 in Mumbai, is promoted by Mr. Nirmal
Desai and Mr. Anil Gupta who have been in this industry for a
decade through associate companies. The company started operations
in 2012-13 (refers to financial year, April 1 to March 31). It
manufactures fabrics and ready-made garments.
ANANTHAPURI EDUC: CRISIL Keeps B+ Debt Rating in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Ananthapuri
Educational Society (AES) continues to be 'CRISIL B+/Stable Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 7 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with AES for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AES, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AES
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AES continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Ananthapuri Educational Society (AES) was set up in May 1991 by
late Prof. N. C. Nair, The society is a charitable society
registered under the Travancore - Cochin Educational and Charitable
Societies Act of 1955. The AES was formed to provide schooling and
higher education and various other courses. Saraswathi Vidyalaya
School follows the syllabus prescribed by Central Board of
Secondary Education (CBSE) 10+2 system. Saraswathi College of Arts
& Science was set up to provide higher education and is affiliated
to the University of Kerala which is A rated by NAAC.
ASHTANGA EDUCATIONAL: CRISIL Keeps D Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Ashtanga
Educational Trust (AET) continue to be 'CRISIL D/CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2.5 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 0.03 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Rupee Term Loan 7.5 CRISIL D (Issuer Not
Cooperating)
Rupee Term Loan 5.22 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with AET for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AET, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AET
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AET continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Set up in 2012, AET operates an Ayurveda hospital and a residential
Ayurveda college in Kottanad, Kerala. Operations are managed by Mr
Narayana Namboodiri.
AVIAN TECHNOLOGIES: CRISIL Keeps D Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Avian
Technologies (AT) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL D (Issuer Not
Cooperating)
Foreign Letter 1.95 CRISIL D (Issuer Not
of Credit Cooperating)
Long Term Loan 3.26 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 0.39 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with AT for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AT, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AT is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of AT
continues to be 'CRISIL D Issuer Not Cooperating'.
AT, established in 2013-14 (refers to financial year, April 1 to
March 31), is a partnership firm of Mr. Anupkumar D and Ms. Lakshmi
Venkatsubramanian. It is engaged in sheet metal fabrication and
caters to industries such as capital goods, automotive, and
construction equipment. The firm's plant is in Chennai and has
installed capacity of 150 tonne per month.
BANK OF INDIA: Fitch Assigns BB(xgs)(EXP) Rating to Sr. Unsec Notes
-------------------------------------------------------------------
Fitch Ratings has assigned State Bank of India's (SBI, BBB-/Stable)
proposed senior unsecured notes an expected rating of 'BBB-(EXP)'.
The notes will constitute SBI's direct, unconditional,
unsubordinated and unsecured obligations and will at all times rank
pari passu among themselves and with all of SBI's other
unsubordinated and unsecured obligations. The notes will be issued
by SBI's London branch.
The final rating is subject to the receipt of final documentation
conforming to information already received.
KEY RATING DRIVERS
The senior unsecured instruments are rated at the same level as the
bank's Long-Term Issuer Default Rating (IDR), in line with Fitch's
criteria.
SBI's IDR is driven by its Government Support Rating (GSR) of
'bbb-', which is higher than its Viability Rating (VR) of 'bb'. The
GSR reflects Fitch's expectation that SBI is highly likely to
receive extraordinary state support from the Indian sovereign
(BBB-/Stable), if required. This is due to SBI's very high systemic
importance in light of its status as India's largest bank, the
state's majority controlling ownership, and its broader policy role
than that of peers. The Stable Outlook on the IDR mirrors that of
the sovereign.
For more details on SBI's key rating drivers and rating
sensitivities, see "Fitch Affirms State Bank of India at 'BBB-';
Outlook Stable", published on 31 August 2023.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
An IDR downgrade will result in a similar change in the expected
rating on the proposed notes.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
An IDR upgrade will result in a similar change in the expected
rating on the proposed notes.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
Senior unsecured long-term ratings (xgs) (EXP) are assigned at the
level of the Long-Term IDR (xgs), which is driven by SBI's VR.
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
A change in SBI's Long-Term IDR (xgs) would lead to a similar
change in its senior unsecured long-term ratings (xgs) (EXP).
DATE OF RELEVANT COMMITTEE
30 August 2023
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
SBI's IDR is the same as India's sovereign IDR and directly linked
via the bank's GSR, which reflects its view of the probability of
extraordinary state support, should there be a need.
ESG CONSIDERATIONS
SBI has an ESG Relevance Score of '4' for Governance Structure, in
line with similarly rated Indian state banks. This reflects its
assessment that key governance aspects - particularly board
independence and effectiveness, ownership concentration, and
protection of creditor and stakeholder rights - are of moderate
influence yet are negative for SBI's credit profile, and are
relevant to the ratings in conjunction with other factors.
Fitch views SBI's governance to be less developed, similar to other
state banks, as evident from significant lending to higher-risk
borrowers and segments, which has led to above-average levels of
impaired loans and credit losses. The board is also dominated by
government appointees, and the bank's business models often focus
on supporting government policy, while the bank already has a
healthy appetite for risk. Lending could be directed towards
socioeconomic and economic policies, and may include lending to
government-owned companies. These factors also drive its view of
the bank's state linkages, which influence support prospects and
drive the long-term ratings.
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.
Entity/Debt Rating
----------- ------
State Bank of India
senior unsecured LT BBB-(EXP) Expected Rating
senior unsecured LT (xgs) BB(xgs)(EXP) Expected Rating
BKG ENTERPRISES: CRISIL Keeps B Debt Rating in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of BKG
Enterprises LLP (BKGE) continues to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 25 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with BKGE for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of BKGE, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on BKGE
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
BKGE continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Established in 2016, BKGE is engaged in commercial real-estate
development. The firm is part of BKG group based out of Karnataka.
Its day to day operations are managed by Mr. Bhavihalli Rudra
gouda.
BLUE DUCK: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Blue Duck
Textiles Private Limited (BDTPL) continue to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL D (Issuer Not
Cooperating)
Term Loan 3 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with BDTPL for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of BDTPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on BDTPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
BDTPL continues to be 'CRISIL D Issuer Not Cooperating'.
BDTPL was incorporated in 2013 and is owned and managed by Shantanu
Kaul and Gitanjali Kaul. The company prints fabrics and other
related cloth material. Its manufacturing facility is located in
Uttar Pradesh.
DUNAC AUTOMOBILES: CRISIL Keeps B+ Debt Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Dunac
Automobiles Private Limited (Dunac) continues to be 'CRISIL
B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 14 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with Dunac for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of Dunac, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on Dunac
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
Dunac continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Dunac Automobiles Private Limited, established in 2005, is a
Bikaner, Rajasthan based company and was promoted by Mr Bhagwan ram
Dudi. It is engaged in dealership business of heavy commercial
vehicles and passenger cars of TATA Motors Ltd.
DURLAX INDIA: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Durlax India
Private Limited (DIPL) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL D (Issuer Not
Cooperating)
Cash Credit 5 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 3.3 CRISIL D (Issuer Not
Cooperating)
Term Loan 9 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with DIPL for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of DIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on DIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
DIPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Based in Mumbai, DIPL sells solid surface sheets and adhesives
under the Luxor and Aspiron brands. The company has a manufacturing
plant in Valsad, which commenced operations in December 2017. It is
managed by the Suthar family with Mr Shravan Suthar as Chairman.
ENERGYWIN TECH: CRISIL Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Energywin
Technologies Private Limited (ETPL) continue to be 'CRISIL
B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.40 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Long Term 1.72 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 0.38 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with ETPL for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of ETPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ETPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
ETPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
ETPL was incorporated in 2011 and based out of Bengaluru, ETPL is
engaged in manufacturing equipment and providing technologies which
cater to efficient energy , time security and asset management in
the renewable energy, power, social and industrial sectors.
JAGANNATH CARRIERS: Ind-Ra Cuts Bank Loan Rating to BB
------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Shree Jagannath
Carriers Private Limited's (SJCPL) bank facility rating to 'IND BB
(ISSUER NOT COOPERATING)' with a Stable Outlook from 'IND
BBB-(ISSUER NOT COOPERATING)'.
The detailed rating actions are:
-- INR85 mil. Fund-based working capital limit downgraded with
IND BB/Stable (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT
COOPERATING) rating;
-- INR5.5 mil. Non-fund-based working capital limit downgraded
with IND A4+ (ISSUER NOT COOPERATING) rating;
-- INR187.3 mil. Term loan due on March 31, 2026 downgraded with
IND BB/Stable (ISSUER NOT COOPERATING) rating;
-- INR12.5 mil. Proposed fund-based working capital limits
downgraded with IND BB/Stable (ISSUER NOT COOPERATING)/IND
A4+ (ISSUER NOT COOPERATING) rating; and
-- INR24.5 mil. Proposed non-fund-based working capital limits
Downgraded with IND A4+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 24, 2023. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
Key Rating Drivers
The downgrade is in accordance with Ind-Ra's Guidelines on What
Constitutes Non-Cooperation. As per the guidelines, if an issuer
has an investment grade rating outstanding while being
non-cooperative for more than six months with Ind-Ra, then Ind-Ra
will necessarily downgrade such rating to the non-investment grade,
while maintaining the Issuer Not Cooperating status.
The current outstanding rating of 'IND BB/Stable (ISSUER NOT
COOPERATING)' might not reflect SJCPL's credit strength as the
company has been non-cooperative with the agency since July 10,
2023. Therefore, investors and other users are advised to take
appropriate caution while using these ratings.
Company Profile
Incorporated in 2010 as a private limited company in Rourkela,
Odisha, SJCPL is engaged in transportation services with a fleet
size of 300 trailers.
JAI BHAVANI: CRISIL Keeps B+ Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Jai Bhavani
Poultry Farm (JBPF) continue to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1.75 CRISIL B+/Stable (Issuer Not
Cooperating)
Rupee Term Loan 1.5 CRISIL B+/Stable (Issuer Not
Cooperating)
Rupee Term Loan 2.75 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with JBPF for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of JBPF, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on JBPF
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
JBPF continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
JBPF was set up in 1990 by the proprietor, Mr Prakash Patil; his
son, Mr Swanand Patil, manages the operations. The firm sells the
eggs produced in its poultry farm at Sangli (Maharashtra).
KANNATTU FINGOLD: Ind-Ra Withdraws B+ Bank Loan Rating
------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Kannattu Fingold
Finance Private Limited's bank loan rating as follows:
-- The IND B+/Stable rating on the INR100 mil. Bank loans is
withdrawn.
Key Rating Drivers
Ind-Ra is no longer required to maintain the ratings as there is no
debt outstanding against the rated bank facility. This is
consistent with Ind-Ra's Policy on Withdrawal of Ratings. Ind-Ra
will no longer provide analytical and rating coverage for the
company.
Company Profile
Chennai-headquartered Kannattu Fingold Finance is a registered
non-banking financial company. The company's management has
extensive experience in gold financing and has been in the business
since 1986.
KLT AUTOMOTIVE: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Klt Automotive and Tubular Products Limited
B-601, Elegant Business Park, MIDC Road No. 2,
Andheri (East) Mumbai City, Mumbai
Maharashtra, India, 400059
Insolvency Commencement Date: December 21, 2023
Estimated date of closure of
insolvency resolution process: June 18, 2024
Court: National Company Law Tribunal, Mumbai Bench
Insolvency
Professional: Mrs. Dipti Amit Thite
Flat No.9, B Building,
Ramyanagari Housing Society,
Bibwewadi, Pune, Maharashtra, 411 037
Email: kltautomotivecirp@gmail.c:om
Last date for
submission of claims: January 4, 2024
LAVASA CORP: NCLAT Rejects Union Bank's Challenge to Darwin's Bid
-----------------------------------------------------------------
Construction World.in reports that the National Company Law
Appellate Tribunal (NCLAT) has rejected Union Bank's plea to oppose
the bid by Darwin Platform Group for Lavasa Corporation.
According to the report, the tribunal's decision marks a
significant legal hurdle for Union Bank, as it sought to challenge
Darwin Platform Group's efforts to acquire Lavasa Corp.
Construction World.in relates that the details of the case suggest
a complex legal battle over the acquisition, with Union Bank's
attempt to block the bid facing rejection.
According to the report, this decision is expected to have
implications for the ongoing corporate landscape and highlights the
intricacies of regulatory processes in the business sector. The
verdict underscores the importance of legal clarity and due
diligence in corporate transactions, impacting the trajectory of
the Lavasa Corp acquisition.
The NCLAT's stance on this matter sets a precedent for similar
cases and sheds light on the regulatory dynamics surrounding
corporate acquisitions in the current business environment, the
report notes.
About Lavasa Corp
Lavasa Corporation Limited develops and manages a hill city in
India. Its portfolio includes R&D and training centers, IT and
biotech industry, KPOs and those related to art, fashion, and
animation companies; hospitality, tourism, health, education, and
IT and ITES industries; lakeside apartments, villas, rental
housing, and retiree housing; and studio apartments, starter homes,
and workforce apartments.
Lavasa is a subsidiary of construction major Hindustan Construction
Company (HCC) and entered insolvency proceedings at the National
Company Law Tribunal, Mumbai, in August 2018.
As reported in the Troubled Company Reporter-Asia Pacific in late
July 2023, the National Company Law Tribunal has approved a
INR1,814 crore resolution plan for the private hill station Lavasa,
nearly five years after the initiation of the insolvency resolution
process.
Darwin Platform Infrastructure Ltd. (DPIL) has emerged as the
winning bidder for Lavasa Corp., which is primarily into the
business of the development of the private hill station by the same
name in Pune, according to BQ Prime.
MAHAVIR ECO: CRISIL Keeps B Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Mahavir Eco
Projects Private Limited (MEPPL) continue to be 'CRISIL B/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Drop Line 7.55 CRISIL B/Stable (Issuer Not
Overdraft Facility Cooperating)
Proposed Long Term 7.20 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with MEPPL for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MEPPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MEPPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MEPPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Incorporated in 2012, MEPPL has established a CETP for chemical
units located at Sachin, near Surat. The promoter Mr Vatsal Naik
and his family have extensive experience in manufacturing chemical
intermediates.
MALLEMAALA AGRO: CRISIL Keeps B Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Mallemaala
Agro Private Limited (MAPL) continue to be 'CRISIL B/Stable Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.75 CRISIL B/Stable (Issuer Not
Cooperating)
Long Term Loan 25.00 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 0.25 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with MAPL for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MAPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MAPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MAPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
MAPL, incorporated in 2013, produces commercial eggs. Based in
Hyderabad, the company commenced operations in January 2015. It is
promoted by Mr M Shyam Prasad Reddy and his family.
MES INTERNATIONAL: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of MES
International School - Pattambi (MES) continues to be 'CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1.4 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 10.0 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with MES for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MES, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MES
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MES continues to be 'CRISIL D Issuer Not Cooperating'.
Established in 1978, MES International School- Pattambi (MES) runs
a CBSE affiliated school from Jr. Montessori to 12th standard in
Pattambi, Kerala. It is run under Muslim Education Society Calicut
and Dr. Abboobacker is the chairman of the school.
MOGA MEDICITY: CRISIL Keeps B Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Moga Medicity
Private Limited (MMPL) continue to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1 CRISIL B/Stable (Issuer Not
Cooperating)
Term Loan 14 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with MMPL for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MMPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MMPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MMPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Incorporated in 2011, MMPL operates a hospital in Moga, Punjab,
named Medicity Multispecialty Hospital. Furthermore, the company is
setting up another 100-bed hospital in the vicinity of the current
hospital. The new hospital is expected to be operational from
August 2020. MMPL is owned and managed by Mr Ajmer Singh Kalra.
MONEYPLUS FINANCIAL: Ind-Ra Affirms BB Bank Loan Rating
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed the rating on
Moneyplus Financial Services Private Limited's (MFSPL) bank loans
as follows:
-- INR50 mil. Bank loans affirmed with IND BB/Stable rating.
Analytical Approach: Ind-Ra continues to take a standalone view of
MFSPL to arrive at the rating.
Key Rating Drivers
High Geographic and Borrower Concentration Risk: The rating is
constrained by MFSPL's exposure to geographical concentration risk.
At end-September 2023, the company had a significant presence in
the Delhi-National Capital Region (81.4% of assets under management
(AUM)), followed by Rajasthan (9.8%) and Haryana (8.8%). The top 10
accounts in its loan book formed 60% of the book in FY23 (FY22:
77%). Moreover, the loan against share (LAS) portfolio was highly
concentrated with three accounts accumulating to around INR390
million at FYE23 (FYE22: INR484 million). Also, the AUM growth in
1HFY24 was largely driven by small-ticket business loans. As part
of the retail loan growth strategy and to enhance geographic
diversity, the company opened four new branches in Rajasthan in
September 2022, and planning to open new branches in 2024. The
company plans to grow its retail loan book comprising small
business mortgage loan, two-wheeler loan and personal loan to
reduce its borrower and geographical concentration, which would be
a rating monitorable.
Asset Quality under Pressure: The company's delinquencies increased
with more focus on small ticket retail loans, with gross
non-performing assets (GNPA) increasing to 1.02% (based on 180 days
past due) at end-September 2023 (FY23: 0.6%). The provision
coverage ratio also reduced to 39% in 1HFY24 (FY23: 59.9%). At
end-September 2023, the asset quality of its loan against property
portfolio reduced but remained elevated at 3.8% in 1HFY24 (FYE23:
4.1%), and with the increase in the two-wheeler and personal loan
segments, GNPA of the segments increased to 1.1% and 3.2 % in
1HFY24 (FY23: 0.2% and 0.1%), respectively, while LAS portfolio
remained healthy with nil delinquencies. The company plans to hire
a second-level management that will continuously monitor the
portfolio segments and tries to keep the delinquencies in check.
The rating is supported by the promoter's experience of over a
decade in the LAS segment; however, the ability of the management
in growing the retail book with control on the asset quality
remains monitorable.
Low Funding Flexibility: Of the total borrowings of INR771 million
at end-September 2023, inter-corporate deposits and deposits from
related parties and loans from directors/relatives accounted for
35%, followed by non-bank financial companies (60%) and
non-convertible debentures (5%). The company is in a process of
receiving a new sanction from a private bank over 4QFY24-FY25 for
its growth plans. The ability of the company to raise funds from
diverse lenders remains to be monitorable.
Adequate Capitalization: Its tangible net worth stood at INR284
million at end-1HFY24 (FYE23: INR264.9 million). The leverage
(debt/tangible equity) reduced to 2.7x at end-1HFY24 (FYE21: 3.6x),
due to the repayment of 1 large LAS portfolio. The rating benefits
from MFSPL's adequate capitalization levels (1HFY24 tier 1: 26.9%;
FY23: 22%) for the current scale; however, its plans to grow the
retail book may require capital support from its shareholders to
keep the leverage below 4.5x. The management expects to infuse
equity in FY25 which will improve the leverage. Ind-Ra believes the
capital is important for MFSPL to mobilize the adequate equity to
meet its medium-term growth objectives.
Liquidity Indicator – Adequate: At 1HFYE24, the company
maintained a cumulative surplus of around 14% of its total assets
in up-to-one-year bucket. Despite stress on its inflows, its
asset-liability statement remains cumulatively positive in
up-to-one-year bucket. At end-November 2023, the company also had
INR8.9 million of unutilized bank lines and cash and liquid
investments of INR2.2 million, sufficient to meet debt obligations
of up to one month.
Rating Sensitivities
Positive: A substantial increase in the loan book with the scaling
up and seasoning of the granular retail book while maintaining its
control over the asset quality and funding diversification could
lead to a positive rating action.
Negative: Significant deterioration in the asset quality and the
profitability metrics, leading to the capital impairment, the
leverage increasing above 4.5x, on a sustained basis, and funding
challenges would lead to a negative rating action.
Company Profile
MFSPL is a Reserve Bank of India-registered non-bank financial
company focused in extending finance to micro, small and medium
enterprises, and its product offerings include LAS, loan against
property, business loans, personal loans and two-wheelers. It
operates through nine branches in the Delhi-National Capital
Region, Haryana and Rajasthan.
MUSADDILAL GEMS: CRISIL Keeps B+ Debt Rating in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Musaddilal
Gems and Jewels (India) Private Limited (MGJPL) continues to be
'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Secured Overdraft 13 CRISIL B+/Stable (Issuer Not
Facility Cooperating)
CRISIL Ratings has been consistently following up with MGJPL for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MGJPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MGJPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MGJPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Incorporated in 2013 and promoted by Mr Shashanka Gupta and his
mother, Ms Vandana Gupta, MGJPL retails diamond and gold jewellery
through its single showroom in Hyderabad.
RAGHAVENDRA POULTRY: CRISIL Keeps D Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sri
Raghavendra Poultry Farm (SRHPF; a part of the Sri Poultry group)
continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.2 CRISIL D (Issuer Not
Cooperating)
Term Loan 4.8 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SRHPF for
obtaining information through letter and email dated December 13,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SRHPF, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SRHPF
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SRHPF continues to be 'CRISIL D Issuer Not Cooperating'.
About the Group
The Sri Poultry group was set up by Mr B H Thippeswamy and family
in Kodihally (Karnataka).
SRPF is engaged in poultry farming with capacity of 60,000 birds;
it also operates a 1 megawatt (MW) solar roof top plant and has a
25-year power-purchase agreement (PPA) with BESCOM.
SRHPF is engaged in poultry farming with capacity of 75,000 birds;
it also operates a 1 MW solar roof top plant and has a 25-year PPA
with BESCOM.
RAJALAKSHMI POULTRY: CRISIL Keeps D Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sri
Rajalakshmi Poultry Farm (SRPF) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.2 CRISIL D (Issuer Not
Cooperating)
Term Loan 4.8 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SRPF for
obtaining information through letter and email dated December 13,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SRPF, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SRPF
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SRPF continues to be 'CRISIL D Issuer Not Cooperating'.
For arriving at the rating, CRISIL Rating has consolidated the
business and financial risk profiles of Sri Raghavendra Poultry
Farm (SRHPF) and SRPF. That is because these two firms, together
referred to as the Sri Poultry group, have similar nature of
operations, operational & financial fungibility, and a common
management.
About the Group
The Sri Poultry group was set up by Mr B H Thippeswamy and family
in Kodihally (Karnataka).
SRPF is engaged in poultry farming with capacity of 60,000 birds;
it also operates a 1 megawatt (MW) solar roof top plant and has a
25-year power-purchase agreement (PPA) with BESCOM.
SRHPF is engaged in poultry farming with capacity of 75,000 birds;
it also operates a 1 MW solar roof top plant and has a 25-year PPA
with BESCOM.
SAMBANDAM SPINNING: Ind-Ra Cuts Bank Loan Rating to BB
------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Sambandam
Spinning Mills Limited's (SSML)'s bank facilities to 'IND BB
(ISSUER NOT COOPERATING)' from 'IND BBB- (ISSUER NOT COOPERATING)'.
The Outlook is Stable.
The instrument-wise rating actions are:
-- INR535.20 mil. Fund-based working capital limits downgraded
with IND BB/Stable (ISSUER NOT COOPERATING)/IND A4+ (ISSUER
NOT COOPERATING) rating;
-- INR755.57 mil. Term loan due on FY29 downgraded with IND BB/
Stable (ISSUER NOT COOPERATING) rating;
-- INR92.50 mil. Non-fund-based facilities downgraded with IND
A4+ (ISSUER NOT COOPERATING) rating; and
-- INR76.10 mil. Fixed deposit programme downgraded with IND BB/
Stable (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
best available information
Key Rating Drivers
The downgrade is in accordance with Ind-Ra's Guidelines on What
Constitutes Non-Cooperation. As per the guidelines, if an issuer
has an investment grade rating outstanding while being
non-cooperative for more than six months with Ind-Ra, then Ind-Ra
will necessarily downgrade such rating to the non-investment grade,
while maintaining the Issuer Not Cooperating status.
The current outstanding rating of 'IND BB (ISSUER NOT COOPERATING)'
might not reflect SSML's credit strength as the company has been
non-cooperative with the agency since July 7, 2023. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings.
Company Profile
Incorporated in 1973, SSML manufactures regular melange yarn, color
melange yarn,100% cotton melange yarn,100% viscose and polyester
blended melange yarn,100% bamboo and bamboo blended melange yarn,
tri-blended melange yarn, grindle fabric, neppy yarn, fancy yarn,
injection yarn, streaky yarn, among others.
SANTHA CASHEW: CRISIL Keeps B+ Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Santha Cashew
(SACAKO) continue to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.5 CRISIL B+/Stable (Issuer Not
Cooperating)
Export Packing 2.0 CRISIL B+/Stable (Issuer Not
Credit Cooperating)
CRISIL Ratings has been consistently following up with SACAKO for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SACAKO, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
SACAKO is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of SACAKO continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Set up in 1996, SACAKO is a partnership firm engaged in the
processing of raw cashew nuts and sale of cashew kernels. SACAKO
currently operates its facility in Kollam (Kerala) with an
installed capacity of processing around 200-300 bags per day. The
operations of the firm are managed by its promoter Mr. Biju.
SOORAJ AGRO: Ind-Ra Assigns BB- Term Loan Rating, Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Sooraj Agro
Distilleries Limited's (SADL) term loans as follows:
-- INR1.320 bil. Term loans due on December 31, 2032 assigned
with IND BB-/Stable rating.
Analytical Approach: Ind-Ra has taken a standalone view of SADL to
assign the rating.
Key Rating Drivers
The ratings reflect the time and cost overrun risks associated with
SADL's under-construction grain-based ethanol manufacturing unit
with a capacity of 39,600 kilo liters per annum at Havnor Village,
Karnataka. As of October 31, 2023, SADL had already incurred capex
of INR1,406.6 million (73.73% of the total planned capex) for
acquiring land for the project, building construction, advance for
civil works, machinery and for other preliminary expenses. Of this,
INR548.60 million was in the form of equity and unsecured loans and
the balance INR849.20 million was through term loans. The site work
and construction of building structure is under progress. The
management expects commercial operations to commence from August
2024. Ind-Ra expects the scale of operations to remain small over
the medium term owing to the initial risks associated with capacity
utilization.
Liquidity Indicator - Stretched: SADL does not have any capital
market exposure and relies on banks and financial institutions to
meet its funding requirements. The total investment for the project
is INR1,907.8 million, of which INR1,320 million (69.20%) will be
funded through term loans and the remaining INR587.80 million
(30.80%) through promoters' contribution. The term loan has already
been sanctioned, out of which INR849.20 million had been disbursed
as on 31 October 2023. The company has repayment obligations of
INR47.10 million and INR188.60 million in FY25 and FY26,
respectively. The company plans to meet its working capital
requirements through proposed fund-based working capital limits of
INR200 million, which will be disbursed post the commencement of
operations. In the event of a delay in capex completion, the
expenses will be funded by promoters.
The rating benefits from the high demand and growing market for
ethanol to be used in fuels produced by oil marketing companies
such as Hindustan Petroleum Corporation Limited ('IND AAA'/Stable)
and Bharat Petroleum Corporation Limited, thereby aiding revenue
visibility for SADL over the medium term. The project also has
locational advantages due to its proximity to areas that have ample
raw material sources.
The rating is also supported by the promoter's experience of nearly
three decades in the agriculture industry, which would help the
company establish strong relationships with customers as well as
suppliers. Furthermore, the promoters are involved in the trading
of maize, which will be used as raw material for ethanol
production.
Rating Sensitivities
Negative: Any delay in the commencement of operations and achieving
stability in the operating performance after the commencement of
commercial operations, affecting the company's debt serviceability,
could lead to a negative rating action.
Positive: The timely commencement of operations and the subsequent
achievement of a stable operating profitability could lead to
positive rating action.
Company Profile
Incorporated in March 2022, SADL is setting up a 120 kilo liter per
day capacity distillery project for the production of fuel ethanol
at Havnoor village, Haveri District, Karnataka. The registered
office is in Bellary, Karnataka. The unit is likely to commence
operations from April 2024.
SUD PINES: CRISIL Keeps B Ratings in Not Cooperating Category
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sud Pines
Private Limited (SPPL) continue to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Buyer Credit Limit 4.0 CRISIL B/Stable (Issuer Not
Cooperating)
Cash Credit 4.5 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SPPL for
obtaining information through letter and email dated December 13,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SPPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SPPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SPPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
SPPL, incorporated in 1988, manufactures turpene oil, pine oil, and
thinners, used in soaps and household cleaning items. Mr Satish
Chandra Sood, Ms Neena Sood, and their son Mr Nitin Sood, manage
the operations.
TRINETRA POULTRIES: CRISIL Keeps B Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Trinetra
Poultries Private Limited (TPPL) continue to be 'CRISIL B/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1.25 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Fund- 0.04 CRISIL B/Stable (Issuer Not
Based Bank Limits Cooperating)
Rupee Term Loan 6.61 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with TPPL for
obtaining information through letter and email dated December 13,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of TPPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on TPPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
TPPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Incorporated in 2018, TPPL set up a poultry layer farm with
installed capacity of 1 lakh chicks. It also sells eggs in West
Medinipur, West Bengal. The plant started operations in November
2019. TPPL is owned and managed by Mr Milan Nandi and Ms Pinky
Nandi.
V.D. SWAMI: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of V.D. Swami
And Co Private Limited (VDS) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 10 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 6 CRISIL D (Issuer Not
Cooperating)
Overdraft Facility 14 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 2 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with VDS for
obtaining information through letter and email dated December 13,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of VDS, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VDS
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
VDS continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Incorporated in 1956 in Chennai, VDS undertakes erection, testing,
commissioning, and maintenance of electrical and engineering
equipment in industries across various sectors.
VADIVEL PYROTECHS: CRISIL Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Vadivel
Pyrotechs Private Limited (VPPL) continues to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Working 15 CRISIL D (Issuer Not
Capital Facility Cooperating)
CRISIL Ratings has been consistently following up with VPPL for
obtaining information through letter and email dated December 13,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of VPPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VPPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
VPPL continues to be 'CRISIL D Issuer Not Cooperating'.
Formed in 1945 as a proprietorship firm by the promoter Mr.
Vadivelu, the company is into manufacturing of fireworks and
crackers. The firm got reconstituted as private limited company in
2011. Its operations are managed by Mr. Vasantha Vikas.
VM CASHEWS: CRISIL Keeps B Debt Rating in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of VM Cashews
(VMC) continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 25 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with VMC for
obtaining information through letter and email dated December 13,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of VMC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VMC
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
VMC continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
VMC was set up in 2017 by the proprietor, Ms V Shanmugapriya. The
Panruti (Chennai)-based firm trades and processes raw cashew nuts.
VSRK CONSTRUCTIONS: CRISIL Keeps D Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of VSRK
Constructions (VSRK) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 13 CRISIL D (Issuer Not
Cooperating)
Cash Credit 2 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with VSRK for
obtaining information through letter and email dated December 13,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of VSRK, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VSRK
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
VSRK continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Established in 2002 by Mr N T Venkateswara Rao and Mr Ch.
Venkateswara Rao, VSRK constructs roads and bridges in Andhra
Pradesh and Telangana. The firm is recognized as a special class
contractor by Roads and Buildings department of Andhra Pradesh and
Telangana.
WELGA FOODS: CRISIL Lowers Rating on INR14.50cr Cash Loan to B
--------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long-term bank
facilities of Welga Foods Ltd (WFL) to 'CRISIL B/Stable' from
'CRISIL B+/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 14.50 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
Proposed Term Loan 0.57 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
Working Capital 1.19 CRISIL B/Stable (Downgraded
Demand Loan from 'CRISIL B+/Stable')
Working Capital 2.08 CRISIL B/Stable (Downgraded
Demand Loan from 'CRISIL B+/Stable')
The downgrade factors in the negative operating margin of around
-6% reported for the first six months of fiscal 2024, on account of
liquidation of higher cost inventory and lower absorption of fixed
overheads. The margin has lagged historic levels and expectations
of CRISIL Ratings for fiscal 2024. The negative margin has led to
lower net cash accrual, thereby weakening the financial risk
profile of the company. Sustained improvement in profitability
remains a key rating sensitivity factor.
The rating also reflects the weak financial risk profile and
working capital-intensive operations of the company. These
weaknesses are partially offset by the extensive experience of the
promoters in the packaged foods industry.
Analytical Approach
Unsecured loan of around INR3.5 crore as on March 31, 2023,
extended by the promoters, has been treated as debt as there has
been limited track record of sustenance of operating margins.
Key Rating Drivers & Detailed Description
Weaknesses:
* Lower-than-expected operating margin: The operating margin has
been volatile, ranging from -20% to -7% over the three fiscals
through March 2023, mainly due to the seasonal nature of the
commodity business. The margin declined further to around -6% for
the six months ended September 30, 2023, strained by liquidation of
higher-cost inventory and lower absorption of fixed overheads. With
diversification of business into frozen foods, which are
non-seasonal in nature, the margin could improve and stabilise at
7-8% over the medium term. Sustained improvement in profitability,
also strengthening the financial risk profile, is a key rating
sensitivity factor.
* Weak financial risk profile: Gearing was high at 58 times as on
March 31, 2023, The company plans to raise additional debt of
around INR12 crore in fiscal 2025, to expand its capacities and
enter the frozen foods segment. The resultant impact on the
financial risk profile is likely to be mitigated by a steady
operating margin of 7-8%. Sustained improvement in financial risk
profile, amid capacity expansion and debt proposed to be
undertaken, remains a key rating sensitivity factor.
Strength:
* Extensive experience of the promoters: The promoters have an
experience of over three decades in the packaged foods industry
that has helped them develop an in-depth understanding of the
industry and market dynamics. Resultantly, company has been able to
establish strong relationships with its customers and suppliers and
achieve an operating income CAGR of ~10% for last 3 years through
FY23. The extensive experience of promoters shall further support
the company strengthening the market presence through introduction
of frozen snacks and non-seasonal items, which is expected to give
revenue support from FY25. Extensive experience of promoters shall
continue to support the business risk profile of the company.
Liquidity: Poor
The net cash accruals have been negative till Sep23 by ~Rs 2.0
crores on account of operating losses, but there has been no delay
in servicing of debt obligations till date. Net cash accruals are
expected to be in range of INR0.5-1.5 crores, which would be barely
sufficient to meet up with annual term debt obligations of ~INR1.2
crores over medium term. Company has also been availing working
capital limits of INR14.5 crores, where the average limit
utilisation has been ~90%. Current ratio of company has been weak
at 0.8 times as on March 31, 2023, which is expected to remain in
range 0.7-0.8 times over medium term.
Outlook: Stable
CRISIL Ratings believes WFL will continue to benefit from the
extensive experience of its promoters in the packaged foods
industry
Rating Sensitivity factors
Upward factors:
* Sustained improvement in operating income with sustenance of
operating margins in range of 7-8% leading to higher than expected
net cash accruals.
* Timely start of commercial production from enhanced capacity,
strengthening the business and financial risk profile of the
company.
Downward factors:
* Any further stretch in working capital cycle, leading to
utilisation on bank lines exceeding 95% or further decline in
operating margins leading to lower than expected net cash
accruals.
* Delay in start of commercial production from enhanced capacity,
weakening the business and financial risk profile of the company.
* Any major debt funded capital expenditure weakening the financial
risk profile of the company.
Incorporated in 1984, by Mr Gyan Prakash and Mr Gaurav Prakash, WFL
manufactures and sells frozen peas and other vegetables under its
brand, Welga's. Its processing plant is in Badaun (Uttar Pradesh).
YOUVAKSHI GODOWNS: CRISIL Keeps B Debt Rating in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Youvakshi
Godowns India Private Limited (YGIPL) continues to be 'CRISIL
B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Cash 30 CRISIL B/Stable (Issuer Not
Credit Limit Cooperating)
CRISIL Ratings has been consistently following up with YGIPL for
obtaining information through letter and email dated December 13,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of YGIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on YGIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
YGIPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Incorporated in January 2019, YGIPL is expected to be engaged
distribution of food products and providing warehousing facility to
regional farmers/traders in Telangana and Andhra Pradesh. It is
promoted by Mr. Gummadi Venkateswerllu. Operations are expected to
commence in FY20.
[*] INDIA: Record 273 Stressed Cases Resolved via IBC in 2023
-------------------------------------------------------------
The Economic Times reports that a record 273 stressed firms were
rescued through the insolvency law in 2023 and the resolutions
fetched their creditors more than three times the amount raised
through 160 such debt resolutions in 2022, a senior official told
ET, citing data compiled by the bankruptcy regulator.
ET relates that the realisation proceeds were to the tune of
INR67,000 crore in 2023 against INR20,860 crore in 2022, according
to the Insolvency and Bankruptcy Board of India (IBBI) data yet to
be made public. The jump indicates a "robust upward trajectory" in
the IBC's (Insolvency and Bankruptcy Code's) effectiveness, the
official said.
A Delhi-based expert involved in shaping the insolvency policy said
the 2023 resolution numbers also mirror the broader economic
momentum being witnessed after the pandemic blues, which has
expanded the universe of bidders for stressed assets, according to
ET. Also, the appointment of about three dozen members to the
National Company Law Tribunal (NCLT) over a year through September
2023 expedited the resolutions process in 2023, the expert said.
Cumulatively, 887 insolvent firms saw resolution between late 2016,
when the IBC was adopted, and December 2023. The total realisation
for creditors stood at about INR3.2 lakh crore, or nearly 32% of
their admitted claims, the official said, citing preliminary IBBI
data.
The realisation from these stressed firms was 168% of their
liquidation value when they were admitted for resolution, according
to the IBBI data.
ET says the recovery improved in 2023, thanks to improved investor
interest in a broad range of small and medium enterprises and
above-average realisation from the assets of Srei Group. The
resolution of Srei Equipment Finance and Srei Infrastructure
Finance in the September quarter alone fetched INR13,785 crore,
against the admitted claims of INR33,050 crore. The resolution
process is expected to soon get a tech boost, as the government is
planning to set up an integrated platform for easy flow of
information about insolvency cases. The portal will join key
pillars of the insolvency eco-system, such as the National Company
Law Tribunal (NCLT), the Insolvency and Bankruptcy Board of India
(IBBI), information utilities, resolution professionals, the
Ministry of Corporate Affairs (MCA) and the National Company Law
Appellate Tribunal (NCLAT), an official said last month. The
information available with each of them pertaining to various cases
could be seamlessly accessed by other pillars once the integrated
portal is ready.
ET adds that the IBBI data showed creditors had withdrawn 27,514
insolvency cases, covering defaults of as much as INR9.74 lakh
crore, before their applications were admitted by the adjudicating
authority since IBC's adoption in 2016 until October 2023.
It essentially suggests creditors have either recovered money from
debtors or forced them to settle dues just by posing the IBC
threat, experts said, adding the regime has fostered greater credit
discipline among borrowers, ET states. Defaulting promoters run the
risk of losing control of companies once insolvency cases are
admitted by the National Company Law Tribunal (NCLT).
=========
J A P A N
=========
[*] JAPAN: Zombie Firms on Rise as BOJ Paves Way for Rate Hike
--------------------------------------------------------------
Bloomberg News reports that one in six Japanese companies have
become "zombie" firms unable to keep up with debt payments from
profits alone, putting them in a vulnerable position should the
central bank raise interest rates this year, as is widely expected.
The number of zombie companies hit 251,000 or 17% of the total
number in the 12 months to March, jumping almost a third from the
previous year, Bloomberg discloses citing a report by Teikoku
Databank on Jan. 19. The number was the highest since 2011, when
Japan's economy was battered by an earthquake, tsunami and nuclear
disaster, the firm said.
Bloomberg relates that the surging proportion of zombie firms is
partly a reflection of the fallout from the government and central
bank's large-scale financial support during the pandemic. The
financial positions of these firms would likely come under more
pressure if the Bank of Japan hikes interest rates for the first
time since 2007.
While further rises in bankruptcies and a possible increase in
unemployment would be largely unpopular outcomes, some economists
argue that allowing inefficient and unprofitable firms to go bust
is one of the key ways that would enable Japan to raise its growth
rate.
During the pandemic, policymakers pulled out all the stops to avoid
a wave of bankruptcies and layoffs that would scar the economy for
years, Bloomberg states. The government has provided around 2.6
million interest-free, unsecured loans worth about JPY45 trillion
($300 billion) to businesses in addition to a raft of other support
measures to keep businesses afloat. Special pandemic lending
programs from the BOJ at one point swelled the size of loans on the
central bank's balance sheet by around JPY100 trillion.
According to Bloomberg, the BOJ meets next week and is widely
expected to leave its negative interest rate untouched. Nearly 60%
of surveyed economists surveyed this month view April as the most
likely month for the central bank to raise the rate. Still, the
prevailing view is that the BOJ won't aggressively raise rates
after that, a factor that will limit the additional pressure on
struggling companies.
===============
M A L A Y S I A
===============
SCOMI ENERGY: Heads of Agreement with Duta Marine Terminated
------------------------------------------------------------
theedgemalaysia.com reports that Practice note 17 (PN17) company
Scomi Energy said that the Heads of Agreement (HOA) it signed with
Duta Marine Sdn Bhd in August last year "has been automatically
terminated due to the definitive agreement not being signed within
the exclusivity period".
According to theedgemalaysia.com, the two parties had intended to
enter into a deal "for purposes of setting out a broad framework
for further discussions leading up to the signing of the definitive
agreement" which includes two alternatives.
Under the first alternative, Duta Marine was to dispose of certain
assets, including one or more of its subsidiaries, to Scomi Energy
in exchange for shares and/or cash, theedgemalaysia.com relays.
Duta Marine's assets include a 51% stake in Duta Pacific Offshore
Sdn Bhd, which owns ships and provides marine vessel chartering
services.
The second alternative would have seen the two parties entering
into any other arrangements "as may be mutually agreed".
About Scomi Group
Headquartered in Kuala Lumpur, Malaysia, Scomi Group Bhd --
http://www.scomigroup.com.my/publish/home.shtml-- provides
drilling fluids and mud engineering services and the supply of
industrial and production chemicals to the upstream and downstream
oil and gas industry.
In December 2019, Scomi Group Bhd slipped into Practice Note 17 (PN
17) status after shareholders' equity slipped below 25% of its
issued share capital and its equity dropped below MYR40 million
based on its financial results for the quarter ended June 30,
2019.
The company's shares were suspended on April 20, 2022, after Bursa
Securities rejected its request for a further extension of time to
submit its regularisation plan. The counter last traded at half a
sen on April 18, 2022.
SCOMI ENERGY: Unveils PN17 Exit Plan With Entry of New Shareholder
------------------------------------------------------------------
theedgemalaysia.com reports that Practice note 17 (PN17) company
Scomi Energy Services Bhd on Jan. 19 said it is not proceeding with
a plan to acquire the assets of a marine vessel operator, and
instead announced new proposals to regularise its financial
condition which includes a diversification into the construction
business and the entry of a new major shareholder.
theedgemalaysia.com relates that the group has proposed a share
consolidation, which will see a reduction of its issued share
capital from MYR445.535 million to MYR35,000 by cancelling MYR445.5
million of its share capital, followed by a consolidation of every
20 existing shares into one consolidated share.
According to the report, Scomi Energy proposed to follow that up
with a private placement of 35.125 million new shares, representing
60% of its enlarged issued shares at 22 sen per placement share, to
Datuk Seri Dr Subramaniam Pillai Sankaran Pillai, the founder and
group executive director of Dhaya Maju Infrastructure (Asia) Sdn
Bhd (DMIA), under an agreement executed between Scomi and him on
Jan. 19.
It will then accept a MYR140.03 million contract from DMIA for the
construction and maintenance of the proposed upgrading of the
Keretapi Tanah Melayu Bhd station and facilities under the Klang
Valley Electrified Double Track Phase 2 project, through the
group's wholly-owned unit Richfield Construction (M) Sdn Bhd,
theedgemalaysia.com relays.
"This contract is facilitated through a subcontracting chain vide
the letter of award dated July 29, 2022 (main contract) from the
Ministry of Transport to Dhaya Maju LTAT Sdn Bhd. Following this,
DMLTAT subcontracts the project to DMIA, which in turn subcontracts
it to Richfield Construction," said Scomi Energy in a filing with
Bursa Malaysia.
The troubled oil and gas services group went on to propose a change
of its name to Richfield (M) Bhd, and the diversification of its
principal activities to include the construction business.
About Scomi Group
Headquartered in Kuala Lumpur, Malaysia, Scomi Group Bhd --
http://www.scomigroup.com.my/publish/home.shtml-- provides
drilling fluids and mud engineering services and the supply of
industrial and production chemicals to the upstream and downstream
oil and gas industry.
In December 2019, Scomi Group Bhd slipped into Practice Note 17 (PN
17) status after shareholders' equity slipped below 25% of its
issued share capital and its equity dropped below MYR40 million
based on its financial results for the quarter ended June 30,
2019.
The company's shares were suspended on April 20, 2022, after Bursa
Securities rejected its request for a further extension of time to
submit its regularisation plan. The counter last traded at half a
sen on April 18, 2022.
=====================
N E W Z E A L A N D
=====================
BLACK ROBIN: Court to Hear Wind-Up Petition on Feb. 2
-----------------------------------------------------
A petition to wind up the operations of Black Robin Equity Limited
will be heard before the High Court at Auckland on Feb. 2, 2024, at
10:45 a.m.
Alpha First Securities Limited filed the petition against the
company on Oct. 31, 2023.
The Petitioner's solicitor is:
James Caird
Simpson Grierson, Solicitors
Level 27, 88 Shortland Street
Auckland
DELTA ROOFING: Court to Hear Wind-Up Petition on Feb. 8
-------------------------------------------------------
A petition to wind up the operations of Delta Roofing Services
Limited will be heard before the High Court at Auckland on Feb. 8,
2024, at 10:00 a.m.
Rex Alan Godso and James Edward Webber (as Trustees of The
Wentworth Trust) filed the petition against the company on Nov. 3,
2023.
The Petitioner's solicitor is:
Brett Leeson Martelli
Martelli Yaqub Lawyers Limited
1 St Georges Bay Road
Parnell, Auckland
MTF OPALA 2023: Fitch Hikes Rating on Class F Notes to 'BBsf'
-------------------------------------------------------------
Fitch Ratings has upgraded seven note classes and affirmed five
from two MTF Trust transactions, MTF Pantera Trust 2021 and MTF
Opala Trust 2023. The transactions consist of notes backed by pools
of New Zealand automotive loan receivables originated by Motor
Trade Finance Ltd (MTF). The notes were issued by Trustees
Executors Limited in its capacity as trustee.
The upgrade of MTF Pantera's class D, E and F notes reflects asset
performance that has been better than Fitch's base-case
expectations and the build-up of credit enhancement and
overcollateralisation.
The upgrade of MTF Opala's class B, C, E and F notes are driven by
changes to the stressed pool assumptions and an increase in
overcollateralisation. The stressed pool composition has narrowed
from the outer bounds of the portfolio parameter limits and minimum
yield covenants towards the current pool composition with a limited
buffer. This reflects the reduction in migration risk as the
transaction nears the revolving period expiry of September 2024.
Entity/Debt Rating Prior
----------- ------ -----
MTF Pantera Trust 2021
Class A NZPANTFAT019 LT AAAsf Affirmed AAAsf
Class B NZPANTFBT025 LT AAsf Affirmed AAsf
Class C NZPANTFCT031 LT A+sf Affirmed A+sf
Class D NZPANTFDT047 LT A+sf Upgrade Asf
Class E NZPANTFET052 LT Asf Upgrade BBBsf
Class F NZPANTFFT067 LT BBB+sf Upgrade BBB-sf
MTF Opala Trust 2023
Class A NZOPATFAT017 LT AAAsf Affirmed AAAsf
Class B NZOPATFBT023 LT AA+sf Upgrade AAsf
Class C NZOPATFCT039 LT A+sf Upgrade Asf
Class D NZOPATFDT045 LT BBB+sf Affirmed BBB+sf
Class E NZOPATFET050 LT BB+sf Upgrade BBsf
Class F NZOPATFFT065 LT BBsf Upgrade B+sf
KEY RATING DRIVERS
Stable Performance and Collateral Characteristics: The performance
of the underlying assets has been better than Fitch's base-case net
loss expectations. The transactions' 30+ day arrears as of
end-November 2023 were 1.3% for Pantera and 0.7% for Opala. This is
in line with and below Fitch's 3Q23 Australian Dinkum ABS Index 30+
day arrears of 1.19%.
In the absence of a New Zealand-specific index, the Australian
Dinkum index has been used as a comparison due to the similarities
between the Australian and New Zealand markets. The 60+ day arrears
were 0.5% and 0.3% for Pantera and Opala, respectively, also in
line with and below the index's 60+ day arrears of 0.55%.
Fitch used the following weighted-average (WA) base-case remaining
default rates (and 'AAAsf' stress multiples) in its analysis:
MTF Pantera Trust 2021: 1.7% (5.7x)
MTF Opala Trust 2023: 2.5% (5.9x)
The recovery base case applied was 45.0% with a 'AAAsf' recovery
haircut of 50.0%.
Tight Labour Market Supports Outlook: 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 5.0%, reflecting elevated inflation
combined with a slowdown in consumer spending. Fitch expects
interest rates to remain at current levels until end-2024.
Credit Enhancement Supports Ratings: MTF Opala is currently in its
revolving period, which is set to expire in September 2024. The
proxy pool composition has been modified to reflect the reduced
negative migration risk from the current pool, with high risk
base-case composition modelled at 5.5% (portfolio parameter 8%),
low risk at 27.7% (portfolio parameter 22%) and the post-swap asset
yield at 8.0% (minimum yield covenant 7.5%).
Its cash flow analysis incorporated updated base-case composition,
Fitch's default and recovery expectations and the build-up of
credit enhancement and overcollateralisation from post charge-off
recoveries. All notes can withstand all Fitch stresses at their
assigned rating levels.
Counterparty Risks Drive Ratings: Counterparty risks were evaluated
in the initial transaction analysis through the review of
transaction documentation, legal opinions and structural features.
There have been no changes to any transaction counterparties since
closing. The documented transaction account bank replacement
triggers switch to a lower level once the class A notes are repaid
in full and can constrain the ratings of the class B to F notes
from future upgrades. MTF Pantera's class B, C and D notes' ratings
were constrained in this review.
Low Operational and Servicing Risk: All assets are originated by
MTF, a large motor vehicle financier established in New Zealand in
1970. Fitch undertook an operational review and found that the
operations of the originator and servicer were consistent with
market standards for domestic auto and equipment lenders.
Rated Above Sovereign: Structured finance notes can be rated up to
six notches above New Zealand's Long-Term Local-Currency Issuer
Default Rating of 'AA+', supporting the 'AAAsf' rating on the class
A notes.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Transaction 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 the credit enhancement
available to the notes.
Unanticipated increases in the frequency of defaults and decreases
in recoveries on defaulted receivables could produce loss levels
higher than Fitch's base case, and are likely to result in a
decline in credit enhancement and remaining loss-coverage levels
available to the notes. Decreased credit enhancement may make
certain note ratings susceptible to negative rating action,
depending on the extent of the coverage decline.
Hence, Fitch conducts sensitivity analysis by stressing a
transaction's initial base-case assumptions; these include
increasing WA defaults and decreasing the WA recovery rate.
Downgrade Sensitivities
MTF Pantera Trust 2021
Notes: A / B / C / D / E / F
Rating: AAAsf / AAsf / A+sf / A+sf / Asf / BBB+sf
10% increase in defaults: AAAsf / AAsf / A+sf / A+sf / A-sf /
BBB+sf
25% increase in defaults: AAAsf / AAsf / A+sf / A+sf / BBB+sf /
BBBsf
50% increase in defaults: AAAsf / AAsf / A+sf / Asf / BBBsf /
BBB-sf
10% decrease in recoveries: AAAsf / AAsf / A+sf / A+sf / A-sf /
BBB+sf
25% decrease in recoveries: AAAsf / AAsf / A+sf / A+sf / A-sf /
BBBsf
50% decrease in recoveries: AAAsf / AAsf / A+sf / A+sf / BBB+sf /
BBB-sf
10% increase in defaults / 10% decrease in recoveries: AAAsf / AAsf
/ A+sf / A+sf / A-sf / BBBsf
25% increase in defaults / 25% decrease in recoveries: AAAsf / AAsf
/ A+sf / A+sf / BBBsf / BBB-sf
50% increase in defaults / 50% decrease in recoveries: AAAsf / AAsf
/ A+sf / BBB+sf / BB+sf / BBsf
MTF Opala Trust 2023
Notes: A / B / C / D / E / F
Rating: AAAsf / AA+sf / A+sf / BBB+sf / BB+sf / BBsf
10% increase in defaults: AA+sf / AAsf / Asf / BBBsf / BB+sf /
BB-sf
25% increase in defaults: AA+sf / AA-sf / A-sf / BBBsf / BBsf /
B+sf
50% increase in defaults: AA-sf / Asf / BBB+sf / BB+sf / B+sf /
Less than Bsf
10% decrease in recoveries: AAAsf / AAsf / Asf / BBB+sf / BB+sf /
BB-sf
25% decrease in recoveries: AAAsf / AAsf / Asf / BBBsf / BBsf /
B+sf
50% decrease in recoveries: AA+sf / AA-sf / A-sf / BBB-sf / BB-sf /
Less than Bsf
10% increase in defaults / 10% decrease in recoveries: AA+sf /
AA-sf / Asf / BBBsf / BBsf / B+sf
25% increase in defaults / 25% decrease in recoveries: AAsf / A+sf
/ BBB+sf / BBB-sf / B+sf / Less than Bsf
50% increase in defaults / 50% decrease in recoveries: A+sf /
BBB+sf / BBB-sf / BBsf / Less than Bsf / Less than Bsf
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
An upgrade could result from economic conditions, loan performance
and credit losses that are better than Fitch's baseline scenario or
sufficient build-up of credit enhancement that would fully
compensate for credit losses and cash flow stresses commensurate
with higher rating scenarios, all else being equal.
The class A notes are at the highest level on Fitch's scale and
cannot be upgraded. The ratings of MTF Pantera's B to D notes and
MTF Opala's B notes are constrained from further upgrades due to
the trusts' exposure to lower transaction account bank replacement
triggers after the class A notes have been paid in full. Therefore,
upgrade sensitivities for these notes are not relevant.
Upgrade Sensitivities
MTF Pantera Trust 2021
Notes: E / F
Rating: Asf / BBB+sf
10% decrease in defaults / 10% increase in recoveries: A+sf / Asf
MTF Opala Trust 2023
Notes: C / D / E / F
Rating: A+sf / BBB+sf / BB+sf / BBsf
10% decrease in defaults / 10% increase in recoveries: AA-sf / A-sf
/ BBB-sf / BBsf
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pools and the transactions. Fitch has not reviewed the results of
any third-party assessment of the asset portfolio information as
part of its ongoing monitoring.
Prior to the transactions closing, Fitch sought to receive a
third-party assessment conducted on the asset portfolio
information, but none was made available.
As part of its ongoing monitoring, Fitch reviewed a small targeted
sample of the originator'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.
PIONEER SOLUTIONS: Creditors' Proofs of Debt Due on Feb. 15
-----------------------------------------------------------
Creditors of Pioneer Solutions Limited are required to file their
proofs of debt by Feb. 15, 2024, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Jan. 11, 2024.
The company's liquidator is:
Brenton Hunt
PO Box 13400
City East, Christchurch 8141
PRISHA'S HOSPITALITY: Creditors' Proofs of Debt Due on Feb. 26
--------------------------------------------------------------
Creditors of Prisha's Hospitality Limited, Prisha's Hospitality
(2017) Limited and Findik Limited are required to file their proofs
of debt by Feb. 26, 2024, to be included in the company's dividend
distribution.
Prisha's Hospitality and Prisha's Hospitality (2017) commenced
wind-up proceedings on Jan. 10, 2024.
Findik Limited commenced wind-up proceedings on Jan. 17, 2024.
The company's liquidators are:
Daran Nair
Heiko Draht
Nair Draht Limited
97 Great South Road
Greenlane, Auckland 1051
WESTWOOD TERRACES: Court to Hear Wind-Up Petition on Feb. 2
-----------------------------------------------------------
A petition to wind up the operations of Westwood Terraces Bre
Limited will be heard before the High Court at Auckland on Feb. 2,
2024, at 10:45 a.m.
Alpha First Securities Limited filed the petition against the
company on Oct. 31, 2023.
The Petitioner's solicitor is:
James Caird
Simpson Grierson, Solicitors
Level 27, 88 Shortland Street
Auckland
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P H I L I P P I N E S
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MFT GROUP: SEC Orders Group to Stop Illegal Sale of Investments
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Inquirer.net reports that the Securities and Exchange Commission
(SEC) has ordered companies linked to businesswoman Maria Francesca
"Mica" Tan to stop the illegal sale of investment contracts after
receiving complaints that the group was soliciting money in
exchange for high returns.
Inquirer.net relates that the regulator said in a statement on Jan.
18 that it has directed Tan's MFT Group and Foundry Ventures to
"immediately cease and desist from further engaging in the unlawful
solicitation, offer, and/or sale of securities in the form of
investment contracts without the necessary license from the SEC."
The SEC also barred the companies from further transacting with
depository banks and from transferring or disposing of assets to
ensure the preservation of the assets of investors.
The millennial Tan became a celebrated business figure and an icon
for young entrepreneurs following MFT's aggressive expansion into
food, financial services and health care before the COVID-19
pandemic, the report notes.
Securities disguised as loans at one point in 2018, MFT said it
controlled assets worth more than PHP3 billion.
MFT, which claims on its website to have 280 employees across 10
countries, lists several businesses in its portfolio, among them
Saladstop! Vietnam, Mondial Kidney Care Center and Mimi & Bros
restaurant.
But over the past two years, rumors started to circulate in online
chat forums that the group was falling behind on their payments,
prompting some investors to file a complaint before the SEC's
enforcement and investor protection department (EIPD), according to
Inquirer.net. Ms. Tan herself was named in the SEC order alongside
the directors and officers of the firm.
These were Florita Tan, Charles Edward Tan, Christian Konstantin
"Ck" Agbayani, Ronaldo Nery, Parker Ong, Chiqui Tan, JD
Montelibano, Romarico "Rico" Ruiz, Arlene Navarro, Beatriz Tomas,
Mary Ruth Oquendo, Joanne Cabaero, Thuy Nguyen, Roxanne Agbayani,
Luis Gabriel Cancio Jr., Noel Olan, JR Hernandez, Christian Olan,
Tito Cosejo Jr. and Christian "Kenchi" de Vera, Inquirer.net
discloses.
According to the SEC, MFT Group and Foundry Ventures were found to
be selling unregistered securities disguised as borrower-lender
agreements that would later become promissory notes, Inquirer.net
relays.
"[T]he MFT Group organized public events where it solicited
investments supposedly for start-up companies in exchange for a
guaranteed return ranging from 12 percent to 18 percent per annum.
For this purpose, the MFT Group issued postdated checks but the
amounts indicated in the checks would not be paid," the SEC said.
According to the EIPD, the MFT Group deliberately used the term,
"interest income" to give semblance of legitimacy to the
transactions, which the group packaged as loans, Inquirer.net
relays.
"[I]t is interesting to note how the subject persons and their
agents appear to have deliberately used loan agreements, checks and
even promissory notes to facilitate their unauthorized investment
scheme," the SEC noted.
"By using the said instruments, the subject persons and their
agents made it appear that the investments which they were getting
from the public are loans which are used to fund the operations of
their alleged subsidiaries," it added.
Inquirer.net says MFT Group and Foundry Ventures are registered
corporations but lack the required secondary license to sell
securities to the public.
"Considering that the subject persons and their agents have not
been issued the requisite license to sell/offer securities, this
Commission is duty-bound to immediately stop their unauthorized
investment-taking activities for the protection of the investing
public," the SEC pointed out.
MFT Group operates as a private equity firm with strategic
investments in robust industries including healthcare, financial
services, food and beverage, and real estate.
=================
S I N G A P O R E
=================
CHWEE LAI: Court to Hear Wind-Up Petition on Feb. 2
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A petition to wind up the operations of Chwee Lai Air-Conditioning
Pte Ltd will be heard before the High Court of Singapore on Feb. 2,
2024, at 10:00 a.m.
DBS Bank Ltd filed the petition against the company on Jan. 11,
2024.
The Petitioner's solicitors are:
Rajah & Tann Singapore LLP
9 Straits View
#06-07 Marina One West Tower
Singapore 018937
CLEANSING & MAINTENANCE: Court Enters Wind-Up Order
---------------------------------------------------
The High Court of Singapore entered an order on Jan. 12, 2024, to
wind up the operations of Cleansing & Maintenance Services Pte.
Ltd.
DBS Bank Ltd filed the petition against the company on Dec. 21,
2023.
The company's liquidators are:
Gary Loh Weng Fatt
c/o BDO Advisory
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
COMPASS INCORPORATED: Court to Hear Wind-Up Petition on Feb. 2
--------------------------------------------------------------
A petition to wind up the operations of Compass Incorporated Pte
Ltd will be heard before the High Court of Singapore on Feb. 2,
2024, at 10:00 a.m.
United Overseas Bank Limited filed the petition against the company
on Jan. 11, 2024.
The Petitioner's solicitors are:
Rajah & Tann Singapore LLP
9 Straits View
#06-07 Marina One West Tower
Singapore 018937
EAGLEFORCE PTE: Creditors' Proofs of Debt Due on Feb. 19
--------------------------------------------------------
Creditors of Eagleforce Pte Ltd are required to file their proofs
of debt by Feb. 19, 2024, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Jan. 12, 2024.
The company's liquidators are:
Victor Goh
Khor Boon Hong
Marie Lee
C/o Baker Tilly
600 North Bridge Road
#05-01 Parkview Square
Singapore 188778
XING HUA: Court Enters Wind-Up Order
------------------------------------
The High Court of Singapore entered an order on Jan. 12, 2024, to
wind up the operations of Xing Hua Classic Pte. Ltd.
DBS Bank Ltd filed the petition against the company on Dec. 21,
2023.
The company's liquidator is:
Gary Loh Weng Fatt
c/o BDO Advisory
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
*********
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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Editors.
Copyright 2024. All rights reserved. ISSN: 1520-9482.
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