/raid1/www/Hosts/bankrupt/TCRAP_Public/240215.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
Thursday, February 15, 2024, Vol. 27, No. 34
Headlines
A U S T R A L I A
AUSTRALIAN BREWERS: First Creditors' Meeting Set for Feb. 20
ELMORE LIMITED: In Voluntary Administration
ELMORE LTD: First Creditors' Meeting Set for Feb. 16
FLETCHER BUILDING: Puts Tradelink Subsidiary Up for Sale
FLEXICOMMERCIAL ABS 2022-1: Moody's Ups Rating on F Notes From Ba3
JOINERY MANUFACTURING: In Liquidation, Owes ATO AUD315,000+
MONTEGO HOMES: Second Creditors' Meeting Set for Feb. 20
PCG DEVELOPMENT: Second Creditors' Meeting Set for Feb. 21
PEPPER RESIDENTIAL 39: Moody's Assigns (P)B2 Rating to Cl. F Notes
RAPITI PTY: First Creditors' Meeting Set for Feb. 21
ST HILLIERS: Owes AUD52 Million, 19 Projects in Limbo
C H I N A
CHINA SOUTH: Wang On Cuts Holding in Developer's Junk Bonds
I N D I A
A. GEERI: CRISIL Moves B- Debt Ratings to Not Cooperating
ABF ENGINEERING: CARE Keeps C Debt Rating in Not Cooperating
ALDER BIOCHEM: CRISIL Moves C Debt Ratings to Not Cooperating
ANTS CONSULTING: Insolvency Resolution Process Case Summary
BINNY LIMITED: CARE Downgrades Issuer Rating to C
CHEMIETRON CLEAN: CARE Keeps D Debt Ratings in Not Cooperating
DAS PROCESSORS: CRISIL Cuts Rating on Long/Short Term Debts to D
DHARAMPAL PIPE: CARE Keeps B Debt Rating in Not Cooperating
DKM AGENCIES: CARE Keeps D Debt Ratings in Not Cooperating
EASTERN MATTRESSES: CRISIL Moves C Ratings to Not Cooperating
FLIC MICROWAVES: CARE Keeps D Debt Ratings in Not Cooperating
GO FIRST: Granted 60-Day Extension For Insolvency Resolution
HOLO PACK: CARE Keeps C Debt Rating in Not Cooperating Category
JAYPEE INFRATECH: Panel Seeks NCLT Direction to Implement Plan
JHV STEELS: CARE Lowers Rating on INR11.0cr LT Loan to C
KAVINGANGA WEAVING: CRISIL Moves B- Ratings to Not Cooperating
KSR METAL: CRISIL Moves B+ Debt Ratings to Not Cooperating
LOTUS GREENS: CRISIL Keeps D Debt Rating in Not Cooperating
MAGNEWIN ENERGY: CRISIL Hikes Rating on INR1.25cr Cash Loan to B+
OM SHIV: CARE Keeps D Debt Ratings in Not Cooperating Category
PASUPATI SPINNING: CRISIL Lowers Long Term Rating to B+
PLAZMA TECHNOLOGIES: CARE Keeps D Debt Ratings in Not Cooperating
SHIEL AUTOS: CRISIL Lowers Rating on Long/Short Term Debts to D
SMARTRON INDIA: Insolvency Resolution Process Case Summary
SPORTA TECHNOLOGIES: NCLT Admits Insolvency Resolution Plea
SREELEKSHMI CASHEW: CRISIL Moves B- Ratings to Not Cooperating
SWASTIK OIL: CARE Keeps D Debt Ratings in Not Cooperating Category
T.C. AGRO: CRISIL Lowers Rating on INR31cr Cash Loan to D
TARAPUR TRANSFORMERS: CRISIL Keeps D Ratings in Not Cooperating
V. SATYA: CARE Keeps C Debt Ratings in Not Cooperating Category
VARAD AGRI: CRISIL Migrates B+ Debt Ratings to Not Cooperating
VARDHMAN INDUSTRIAL: CARE Keeps D Debt Rating in Not Cooperating
N E W Z E A L A N D
COOKS TRADING: Court to Hear Wind-Up Petition on Feb. 26
CREST APARTMENTS: Court to Hear Wind-Up Petition on Feb. 16
HITEA DOWNTOWN: Creditors' Proofs of Debt Due on March 1
LEFKADA LIMITED: Creditors' Proofs of Debt Due on March 2
TITAN PARENT: S&P Assigns 'B-' Issuer Credit Rating, Outlook Stable
YOUNGMAN CONSTRUCTION: Creditors' Proofs of Debt Due on March 8
S I N G A P O R E
BRAVO BUILDING: Placed Under Judicial Management
INVESTWELL PTE: Commences Wind-Up Proceedings
KSL CAPITAL: Creditors' Proofs of Debt Due on March 13
LIPPO MALLS: Fitch Lowers LongTerm IDR to 'RD' on Tender Offer
TUASPRING PTE: Court to Hear Wind-Up Petition on Feb. 21
- - - - -
=================
A U S T R A L I A
=================
AUSTRALIAN BREWERS: First Creditors' Meeting Set for Feb. 20
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Australian
Brewers Guild Pty Ltd will be held on Feb. 20, 2024 at 12:00 p.m.
via Microsoft Teams.
Atle Crowe-Maxwell of DBA Advisory was appointed as administrator
of the company on Feb. 12, 2024.
ELMORE LIMITED: In Voluntary Administration
-------------------------------------------
ABC News reports that the mining company that runs the Peko iron
ore and gold mine in the outback Northern Territory town of Tennant
Creek has been placed into voluntary administration, after years of
racking up debts.
In an announcement to the Australian Stock Exchange on Feb. 6,
Elmore Ltd said it was "insolvent or likely to become insolvent at
some future time" and had placed its finances into the hands of
administrators from accounting firm KPMG, the ABC relates.
It comes after Elmore reported losses for the past four financial
years, including a loss of just over AUD23.5 million for
2022-2023.
In a letter sent to creditors last week, KPMG confirmed that
"administrators now control the company's operations and are
assessing the company's financial position".
In a separate letter circulated to mine employees, KPMG said while
it was assessing Elmore's future viability, "employment by the
company continues" and wages would still be paid, the ABC relays.
"Once [viability is] determined, we will advise you of our
intentions regarding ongoing trading," it said.
However, Barkly MLA Steve Edgington, whose electorate includes
Tennant Creek, said there were "a whole lot of unanswered questions
at the moment" over the move.
He told the ABC it was unclear why Elmore and its eight
subsidiaries had entered into administration, and whether the mine
was "viable to be retrieved, or will be shut down permanently".
"Mining, pastoral [and] tourism have been the backbone of the
Barkly for so long . . . there was certainly a lot of hope that it
would be a sustainable operation."
The Peko mine is located about 10 kilometres from Tennant Creek, a
town of about 3,000 people in the Northern Territory's Barkly
region.
Meanwhile, News.com.au reports that footy great Chris Judd and his
wife Rebecca are in a financial hole after the mining company they
had heavily invested in went bust.
News.com.au, citing the West Australian, relates that Chris and Bec
Judd were among the largest shareholders in Perth based iron ore
miner Elmore Limited.
It could see the former West Coast Eagles and Carlton captain left
with nothing to show for his investment, news.com.au says.
Together the Judds own 1.35 per cent of Elmore with 18.8 million
shares.
Shares in Elmore were suspended in September when they were trading
at just 0.5 cents each.
The suspension came as the company struggled with its Peko iron and
gold mine in the Northern Territory.
The Judd's shareholding is currently worth AUD94,400 but they
bought it for a lot more.
They appeared on Elmore's list of top 20 largest shareholders in
April 2021 when shares were 2 cents a piece which valued the then
stake at AUD200,000. They bought more shares around a year later
thought to be valued at AUD266,000, according to news.com.au.
About Elmore Limited
Headquartered in Belmont, Australia, Elmore Limited engages in the
assessment, development, and processing of minerals projects in
Australia. The company explores for iron ore, magnetite, gold,
copper, and cobalt deposits. Its projects comprise the Peko Iron
Ore and Gold Project situated in the Tennant Creek region, Northern
Territory. The company was formerly known as IndiOre Limited and
changed its name to Elmore Limited in July 2019.
Martin Jones, Matthew Woods and Clint Joseph of KPMG were appointed
as administrators of Elmore Limited, Peko Iron Project Pty Ltd,
Peko Gold Lending Pty Ltd, Sitzler Savage Pty Ltd, DHAAB Mining Pty
Ltd, Fratres Mining Pty Ltd, ICA Mining Pty Ltd, Peko Bull Pty Ltd,
and Peko Rehabilitation Project Pty Ltd, on Feb. 6, 2024.
ELMORE LTD: First Creditors' Meeting Set for Feb. 16
----------------------------------------------------
A first meeting of the creditors in the proceedings of:
- Elmore Ltd
- Peko Gold Lending Pty Ltd
- Sitzler Savage Pty Ltd
- DHAAB Mining Pty Ltd
- Fratres Mining Pty Ltd
- ICA Mining Pty Ltd
- Peko Bull Pty Ltd
- Peko Rehabilitation Project Pty Ltd
- Peko Iron Project Pty Ltd
will be held on Feb. 16, 2024 at 12:00 p.m. at the offices of KPMG
at Level 8, 235 St Georges Terrace in Perth and via virtual meeting
technology.
Martin Bruce Jones of KPMG was appointed as administrator of the
company on Feb. 15, 2024.
FLETCHER BUILDING: Puts Tradelink Subsidiary Up for Sale
--------------------------------------------------------
News.com.au reports that a giant Australian plumbing supply
retailer is on the chopping block after its parent company's
financial results tanked.
According to news.com.au, New Zealand building company Fletcher
Building, which owns the Tradelink retail plumbing supplies
business, has revealed the subsidiary is up for sale.
Fletcher made the announcement on Feb. 14, when it released its
financial results for the six months to December 31, the report
notes.
For the six-month period its total revenue only fell one per cent
compared the same time last year, coming in at NZD4.24 billion
(AUD3.98 billion) but it posted a net loss after tax of NZD120
million (AUD113 million), down from a net profit after tax of NZD92
million (AUD86 million) in the second half of 2022, news.com.au
discloses.
News.com.au relates that Fletcher Building CEO Ross Taylor said one
of the factors behind the loss was Tradelink, with "disappointing
results" from the subsidiary leading Fletcher to write down the
value of the plumbing supplier by NZD122 million (AUD115 million)
and put the business up for sale.
"We have concluded that while we believe there is a compelling
opportunity for Tradelink, further ownership of the business is not
in line with the strategic objectives of Fletcher Building," the
report quotes Mr. Taylor as saying.
"Consequently, we intend to commence a divestment process for
Tradelink shortly."
Tradelink is Australia's oldest plumbing supply retailer, having
opened more than 150 years ago. It has more than 100 showrooms and
230 branches across Australia.
Fletcher took ownership of the plumbing supplies and bathroom
renovations retailer when it bought Tradelink's parent, Australian
building supplies company Crane Group in 2011, news.com.au
recalls.
Five years ago Mr. Taylor was talking up the future of the
Tradelink business, telling The Australian Financial Review it was
"well on the road to recovery".
Fletcher Building is listed on both the New Zealand Stock Exchange
and the Australian Securities Exchange.
Aside from the write down on Tradelink, it blamed weakness in NZ
residential building and a cost blow out in its New Zealand
International Convention Centre build for the poor result,
news.com.au says.
The results have also taken a toll on key personnel with Mr. Taylor
to leave the business by October, along with chairman Bruce
Hassall, news.com.au adds.
FLEXICOMMERCIAL ABS 2022-1: Moody's Ups Rating on F Notes From Ba3
------------------------------------------------------------------
Moody's Investors Service has upgraded ratings on five classes of
notes issued by flexicommercial ABS Trust 2022-1.
The affected ratings are as follows:
Issuer: flexicommercial ABS Trust 2022-1
Class B Notes, Upgraded to Aaa (sf); previously on Jul 12, 2023
Upgraded to Aa1 (sf)
Class C Notes, Upgraded to Aa1 (sf); previously on Jul 12, 2023
Upgraded to Aa3 (sf)
Class D Notes, Upgraded to Aa3 (sf); previously on Jul 12, 2023
Upgraded to A3 (sf)
Class E Notes, Upgraded to A3 (sf); previously on Jul 12, 2023
Upgraded to Baa2 (sf)
Class F Notes, Upgraded to Baa3 (sf); previously on Jul 12, 2023
Upgraded to Ba3 (sf)
A comprehensive review of all credit ratings for the transaction
has been conducted during a rating committee.
RATINGS RATIONALE
The upgrades were prompted by an increase in credit enhancement
available to the affected notes and the good performance of the
collateral pool to date.
No actions were taken on the remaining rated classes in the deal as
credit enhancement for those classes remains commensurate with
their current rating.
Following the January 2024 payment, credit enhancement available
for the Class B, Class C, Class D, Class E and Class F Notes has
increased to 30.7%, 24.6%, 20.5%, 15.7% and 10.4% respectively,
from 27.0%, 21.3%, 17.6%, 13.2% and 8.0% from the last rating
action for these notes in July 2023.
As of December 2023, 1.3% of the outstanding pool was 30-plus day
delinquent and 0.2% was 90-plus day delinquent. The deal has
incurred 1.0% of loss to date, which has been covered by excess
spread.
Based on the observed performance to date and loan attributes,
Moody's has lowered its expected loss assumption to 5.1% of the
outstanding portfolio balance (equivalent to 4.4% of the original
portfolio balance), compared with 6.2% of the outstanding portfolio
balance (equivalent to 5.4% of the original portfolio balance) at
the last rating action in July 2023. Moody's has also lowered the
Aaa portfolio credit enhancement to 29% from 31% at the last rating
action in July 2023.
The transaction is a securitisation of a portfolio of equipment and
commercial auto loans and leases originated by Flexirent Capital
Pty Limited and flexicommercial Pty Ltd, each a wholly owned
subsidiary of Humm Group Limited, and serviced by flexicommercial
Pty Ltd.
The principal methodology used in these ratings was "Equipment
Lease and Loan Securitizations Methodology" published in September
2023.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that could lead to an upgrade of the ratings include (1)
performance of the underlying collateral that is better than
Moody's expectations, and (2) an increase in credit enhancement
available for the notes.
Factors that could lead to a downgrade of the ratings include (1)
performance of the underlying collateral that is worse than Moody's
expectations, (2) a decrease in credit enhancement available for
the notes, and (3) a deterioration in the credit quality of the
transaction counterparties.
JOINERY MANUFACTURING: In Liquidation, Owes ATO AUD315,000+
------------------------------------------------------------
News.com.au reports that the debts of a collapsed group of
manufacturing companies have snowballed as liquidators wade through
the mess.
Last week, news.com.au reported that the final company involved in
the Sydney-based GDK Group had been court-ordered to go into
liquidation.
The Federal Court ordered Joinery Manufacturing Solutions Pty Ltd
to go into liquidation over an unpaid tax debt, appointing Tristana
Steedman of insolvency firm RSM Partners as the liquidator.
It came after all staff were brutally sacked right before
Christmas, leaving some in tears and many out of pocket.
News.com.au previously reported that in the past six months, 11
businesses linked to the group, which specialises in cabinet
making, had collapsed with debts in excess of AUD45 million.
Some of these businesses were named after obscure Lord of the Rings
references, "confusing" some staff members and leaving them unaware
that some of the companies were in operation.
Now RSM Partners has revealed the results of its preliminary
investigation into the most recent company's collapse, news.com.au
reports.
According to news.com.au, a RSM spokesperson said so far, it
appeared that 40 employees had been impacted by the collapse of
Joinery Manufacturing Solutions Pty Ltd.
All of these employees have lodged claims with a government rescue
scheme to have their final wages paid back though the exact amount
owed is unknown.
The liquidation firm also said it was too early to know how much,
if any, was owed to employees in superannuation.
news.com.au relates that RSM Partners said that Joinery
Manufacturing Solutions owes in excess of AUD315,000 to the tax
office, which is how it landed in court.
That's on top of a further AUD15 million owed to creditors from
four related companies which have gone under that RSM Partners are
also investigating.
Another company, part of the GDK Group but with a different
liquidator appointed, owes AUD29.8 million to creditors, according
to a report lodged with ASIC, news.com.au discloses.
Any creditors with concerns are urged to contact the liquidator on
GDK_creditors@rsm.com.au.
RSM Australia Partner Richard Stone said in a statement to
news.com.au: "The liquidators understand this is a challenging time
for creditors of all companies and are endeavouring to quantify
debts and identify and realise the value of any assets for the
ultimate benefit of creditors".
MONTEGO HOMES: Second Creditors' Meeting Set for Feb. 20
--------------------------------------------------------
A second meeting of creditors in the proceedings of Montego Homes
Pty Ltd has been set for Feb. 20, 2024 at 11:00 a.m. at the offices
of Cor Cordis at Level 29, 360 Collins Street in Melbourne and via
electronic 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 Feb. 19, 2024 at 5:00 p.m.
Shaun Matthews and Sam Kaso of Cor Cordis were appointed as
administrators of the company on Jan. 15, 2024.
PCG DEVELOPMENT: Second Creditors' Meeting Set for Feb. 21
----------------------------------------------------------
A second meeting of creditors in the proceedings of PCG Development
1 Pty Ltd has been set for Feb. 21, 2024 at 12:30 p.m. at the
offices of Worrells at Level 14, 570 Bourke Street in Melbourne.
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 Feb. 20, 2024 at 5:00 p.m.
Con Kokkinos of Worrells was appointed as administrator of the
company on Nov. 23, 2023.
PEPPER RESIDENTIAL 39: Moody's Assigns (P)B2 Rating to Cl. F Notes
------------------------------------------------------------------
Moody's Investors Service has assigned the following provisional
ratings to notes to be issued by Permanent Custodians Limited as
trustee of Pepper Residential Securities Trust No. 39.
Issuer: Pepper Residential Securities Trust No. 39
AUD150.00M Class A1-s Notes, Assigned (P)Aaa (sf)
AUD412.50M Class A1-a Notes, Assigned (P)Aaa (sf)
AUD97.50M Class A2 Notes, Assigned (P)Aaa (sf)
AUD50.25M Class B Notes, Assigned (P)Aa2 (sf)
AUD5.25M Class C Notes, Assigned (P)A2 (sf)
AUD12.75M Class D Notes, Assigned (P)Baa2 (sf)
AUD6.75M Class E Notes, Assigned (P)Ba2 (sf)
AUD9.75M Class F Notes, Assigned (P)B2 (sf)
The AUD5.25 million Class G Notes are not rated by Moody's.
The transaction is a securitisation of residential mortgage loans
originated by Pepper Homeloans Pty Limited (Pepper Homeloans,
unrated) and serviced by Pepper Money Limited (Pepper, unrated).
Pepper is an Australian non-bank lender specialising in
non-conforming and prime residential lending. It also has
operations in New Zealand. As of June 30, 2023, Pepper's mortgage
portfolio totalled AUD12.4 billion, including residential mortgages
in Australia and New Zealand, and commercial real estate mortgages
in Australia.
RATINGS RATIONALE
The provisional ratings take into account, among other factors:
-- Evaluation of the underlying receivables and their expected
performance;
-- Evaluation of the capital structure and credit enhancement
provided to the notes;
-- The availability of excess spread over the life of the
transaction;
-- The liquidity facility in the amount of 1.5% of the notes
balance with a floor of AUD1,125,000;
-- The experience of Pepper as the servicer; and
-- The back-up servicer available in this transaction (BNY Trust
Company of Australia Ltd).
According to Moody's, the transaction benefits from credit
strengths, such as relatively high subordination to the Class A1-s
and Class A1-a Notes, and turbo repayment of the junior notes,
starting from the Class F Notes. However, Moody's notes that the
transaction also features some credit weaknesse,s such as the
material portion of the portfolio extended to borrowers with prior
credit impairment (18.8%), loans granted to self-employed borrowers
(51.0%) and loans underwritten on an alternative documentation
basis (39.6%).
Moody's Individual Loan Analysis (MILAN) stressed loss for the
collateral pool — representing the loss that Moody's expects the
portfolio to suffer in the event of a severe recession scenario —
is 7.4%. Moody's median expected loss for this transaction is 1.3%,
which represents a stressed, through-the-cycle loss relative to
Australian historical data.
The key transactional features are as follows:
-- Principal collections will be first used to repay the Class
A1-s Notes in full, and then Class A1-a and Class A2 Notes on a
pari passu basis. Starting from the second anniversary from
closing, and provided subordination to the Class A2 notes has at
least doubled since closing, all notes may participate in
proportional allocation of principal. While any of the other notes
are outstanding, the Class G Notes' share of principal will be
allocated in reverse sequential order starting from the Class F
Notes. If step-down criteria are breached, principal allocation
will revert to sequential, although Class A1-a and A2 will continue
to receive principal collections on a pari-passu basis until the
call date. The step-down criteria include, among others, no
charge-offs that remain unreimbursed on any of the notes and no
outstanding principal draw.
-- Class A2 and Class A1-a Notes rank pari passu in relation to
principal payments, based on their stated amounts, before the call
option date, although Class A2 are subordinate to the Class A1-s
and Class A1-a Notes in relation to charge-offs. This feature
reduces the absolute amount of credit enhancement available to the
Class A1-a Notes.
-- In accordance with the retention amount mechanism, on each
payment date until the call option date, excess spread of up to
0.20% per annum of the outstanding principal balance of the
portfolio will be used to repay junior notes, starting from the
Class F notes. The subordination to the senior notes will be
preserved by maintaining a ledger equivalent to the excess spread
used towards the retention amount.
-- A yield enhancement reserve account will be funded by trapping
excess spread at a rate of 0.3% per annum of the outstanding
principal balance of the portfolio, subject to a maximum balance of
AUD1.5 million. While the Class A and Class B Notes are
outstanding, the reserve is available to meet the required
payments. Once Class B Notes are repaid in full, the yield
enhancement reserve will be used to pay the junior notes, starting
from the Class F notes.
The key portfolio characteristics are as follows:
-- The portfolio has a weighted average scheduled loan-to-value
(LTV) ratio of 68.4%, and a relatively high proportion of loans
(21.7%) with scheduled LTV above 80%.
-- Based on Moody's calculations, the portfolio has a
weighted-average seasoning of 18.5 months.
-- Investment loans represent 33.9% of the portfolio.
-- Loans with an interest only term of up to 5 years represent
16.8% of the portfolio.
Methodology Underlying the Rating Action:
The principal methodology used in these ratings was "Residential
Mortgage-Backed Securitizations methodology" published in October
2023.
This methodology relates to Australian transactions.
Factors that would lead to an upgrade or downgrade of the ratings:
Levels of credit protection that are greater than necessary to
protect investors against current expectations of loss could lead
to an upgrade of the ratings. Moody's current expectations of loss
could be better than its original expectations because of fewer
defaults by underlying obligors or higher recoveries on defaulted
loans. The Australian jobmarket and the housingmarket are primary
drivers of performance.
A factor that could lead to a downgrade of the notes is
worse-than-expected collateral performance. The Australian jobs
market and housing market are major drivers of performance. Other
reasons for worse performance than Moody's expects include poor
servicing, error on the part of transaction parties, deterioration
in credit quality of transaction counterparties, fraud and lack of
transactional governance.
RAPITI PTY: First Creditors' Meeting Set for Feb. 21
----------------------------------------------------
A first meeting of the creditors in the proceedings of Rapiti Pty
Ltd will be held on Feb. 21, 2024 at 10:00 a.m. at the offices of
Oracle Insolvency Services at Suite 1104, 147 Pirie Street in
Adelaide and via Zoom meeting.
Yulia Petrenko, Nick Cooper and Dominic Cantone of Oracle
Insolvency Services were appointed as administrators of the company
on Feb. 11, 2024.
ST HILLIERS: Owes AUD52 Million, 19 Projects in Limbo
-----------------------------------------------------
News.com.au reports that failed construction giant St Hilliers owes
AUD40 million to creditors, AUD10 million to subcontractors and
suppliers and AUD2 million to staff as the full scale of its
collapse has been revealed.
Administrators Glenn Livingstone and Alan Walker of WLP
Restructuring, who took charge of the construction division of St
Hilliers last week, confirmed the liabilities following a
creditor's meeting on Feb. 14, news.com.au relates.
According to news.com.au, the administrators are working to get 19
projects restarted so that subcontractors and suppliers can be
paid, after all activity by the company was brought to a halt last
week.
Work on one Queensland project is set to recommence as soon as Feb.
14, however St Hilliers' contracts for two other Queensland-based
projects have been terminated.
As a result, six staff have been made redundant by the company,
news.com.au says.
At the time of its collapse on February 5, the company owed AUD2
million in employee entitlements to 22 staff that had already been
made redundant, and if the company were to fail, it is understood
that the amount owed to another 76 employees would increase to
AUD4.3 million.
There were also AUD16.6 million in potential retention claims owing
and AUD13.5 million in cash-backed bank guarantees held for
clients, the administrators confirmed, news.com.au discloses.
Retention claims relate to a percentage of project payments that
are held until the completion of the project in case defects need
to be fixed.
A combination of wet weather delays, fixed-price contracts, rising
interest rates and increasing costs are understood to be
responsible for the company's decline, news.com.au notes.
According to news.com.au, the administrators are seeking an
extension of up to three months from creditors, who have the power
to force the company into liquidation, and Mr. Livingstone told The
Australian that if work does restart on some of the company's
projects, funds would be held in trust accounts to ensure
subcontractors are paid.
"We will need to look after these people if we are to be successful
in getting projects done," he said.
Of the projects that are in limbo, 10 are for the Department of
Defence.
St Hilliers director and founder Tim Casey is also understood to be
planning to submit a Deed of Company Arrangement (DOCA) proposal
prior to the second meeting of creditors, news.com.au reports.
Under a DOCA, creditors typically receive cents in the dollar on
outstanding debts while the company's debts are wiped and they are
able to continue to trade.
=========
C H I N A
=========
CHINA SOUTH: Wang On Cuts Holding in Developer's Junk Bonds
-----------------------------------------------------------
The South China Morning Post reports that Hong Kong property
developer Wang On Group has cut its holding in junk-rated
dollar-denominated bonds issued by China South City Holdings,
widening losses from its bets on the troubled mainland Chinese
developer and its peers.
The Post relates that the firm sold US$8.4 million face amount of
China South City notes in the open market for US$3.8 million from
February 2 to 8, according to its stock exchange filing on Feb. 8.
As a result, Wang On Group expects to incur a HK$32.9 million
(US$4.2 million) loss in the financial year ending March 31, it
added.
The sale provides the group with "a good opportunity to realise
their investments in the China South City Notes, and to reallocate
resources for general working capital and other investment
opportunities when they arise," Wang On Group said in the filing,
the Post relays.
Shares of Hong Kong-listed China South City tumbled 9.4 per cent to
HK$0.21 on Feb. 9, extending the total loss over the past 12 months
to 62.8 per cent, the Post relays. Wang On traded unchanged at
HK$0.037, having lost 26 per cent of its value in the past year.
Wang On has also invested in junk-rated bonds issued by other
debt-laden Chinese developers, including Guangzhou R&F Properties
and Yuzhou Group, according to its exchange filings cited by the
Post. Chinese developers have defaulted on more than US$100 billion
of offshore bonds since Beijing imposed its "three red lines"
policy to curb excessive leverage in the industry.
State-backed China South City is one of many developers in China
that fell into distress amid the Covid-19 pandemic, slumping home
sales and the Chinese government's moves to tighten the reins on
the bubble-prone real estate sector, according to the Post.
China South City issued a notice to the Hong Kong stock exchange in
December that it would not have enough cash to pay interest on its
foreign-currency debt as it struggles to win support from creditors
to restructure five bonds totalling US$1.35 billion, maturing in
2024, the Post recalls.
The Post says the company averted a default on an offshore debt
after winning consent from creditors to extend the maturity of a
US$235 million July 2024 note by 37 months to August 2027 while
reducing the annual coupon by half to 4.5 per cent.
However, it failed to garner enough support to restructure four
other dollar-denominated bonds maturing in April, June, October and
December this year with a combined face value of US$1.11 billion,
the company said in a filing in December, the Post adds.
About China South City
China South City Holdings Limited is principally engaged in
property development. The Company operates its business through
five segments. The Property Development segment is engaged in the
development of integrated logistics and trade centers, residential
and commercial ancillary facilities. The Property Investment
segment is engaged in the investment in integrated logistics and
trade centers, residential and commercial ancillary facilities. The
Property Management segment is engaged in the management of the
Company's developed properties. The E-commerce segment is engaged
in the development, operations and maintenance of an E-commerce
platform. The Others segment is engaged in the provision of
advertising, exhibition, logistics and warehousing services, outlet
operations and other services.
As reported in the Troubled Company Reporter-Asia Pacific on Jan.
24, 2022, Fitch Ratings has affirmed the Long-Term Foreign-Currency
Issuer Default Rating (IDR) of China South City Holdings Limited
(CSC) at 'B-'. The Outlook remains Negative. Fitch has also
affirmed its senior unsecured ratings at 'B-', with a Recovery
Rating of 'RR4'.
The affirmations reflect Fitch's view that CSC has sufficient
liquidity to address its US dollar bonds due February 2022, despite
its consent solicitation announcement to extend the bonds'
maturity. Fitch also believes an equity transaction agreement with
Shenzhen SEZ Construction and Development Group Co Ltd (SZCDG), an
enterprise wholly owned by the state under Shenzhen province's
State-owned Assets Supervision and Administration Commission, is
likely to improve its onshore funding access and funding cost.
The Negative Outlook is due to the company's continued tight
liquidity, with execution risks in terms of the timing of planned
asset sales.
=========
I N D I A
=========
A. GEERI: CRISIL Moves B- Debt Ratings to Not Cooperating
---------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of A.
Geeri Pai Gold and Diamonds (AGPGD) to 'CRISIL B-/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 20 CRISIL B-/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Long Term Loan 2.87 CRISIL B-/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Long Term Loan 0.78 CRISIL B-/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Long Term Loan 4.81 CRISIL B-/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Long Term Loan 4.8 CRISIL B-/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Working Capital 3 CRISIL B-/Stable (ISSUER NOT
Demand Loan COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with AGPGD for
obtaining NDS through letters/emails dated November 30, 2023,
December 29, 2023 and January 31, 2024, among others, apart from
telephonic communication to seek the same. After non-receipt of NDS
for 2 consecutive months, we also sent a letter dated January 24,
2024 reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of AGPGD to confirm timely debt servicing during
these months, but awaits any feedback.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive NDSs from AGPGD, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on AGPGD is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the rating on bank facilities of AGPGD
migrated to 'CRISIL B-/Stable Issuer Not Cooperating'.
AGPGD was set up in 1980 as a partnership firm of Mr. Sachithananda
S Pai, Ms Sheela S Pai, Mr. Ramesh S Pai and Mr. Vishnunarayana S
Pai. It retails jewellery through its showroom in Palarivattom,
Kerala.
ABF ENGINEERING: CARE Keeps C Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of ABF
Engineering international Private Limited (AEIPL) continue to
remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.07 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 2.80 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 29,
2022, placed the rating(s) of AEIPL under the 'issuer
non-cooperating' category as AEIPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. AEIPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated November 14, 2023, November
24, 2023, December 4, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Stable
ABF Engineering International Private Limited (AEIPL) was
established in 2007 as a company to render manufacturing services
to industries and sectors such as construction, ship building,
petrochemical, Oil and Gas, Fertilizers, Chemical plants, Power
Sector, Pharma and Engineering Project Construction consultants.
ABF is certified by American Society of Mechanical Engineers (ASME)
for U and PP stamp to manufacture pressure vessels, piping
fabrication and accessories. ABF Engineering is registered with IBR
Act, 1950 to manufacture pressure parts and package boiler and
certified by Engineers India Limited (EIL) for procurement of
pressure vessels, and Nuclear Power Corporation of India Limited
(NPCIL) as a vendor for condensers, storage tanks, process piping,
structural fabrication, fabricated steel parts, Sheet metal parts
etc.
ALDER BIOCHEM: CRISIL Moves C Debt Ratings to Not Cooperating
-------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Alder
Biochem Private Limited (ABPL) to 'CRISIL C Issuer Not
Cooperating'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL C (ISSUER NOT
COOPERATING; Rating Migrated)
Long Term Loan 4.82 CRISIL C (ISSUER NOT
COOPERATING; Rating Migrated)
Long Term Loan 22.07 CRISIL C (ISSUER NOT
COOPERATING; Rating Migrated)
Working Capital 0.46 CRISIL C (ISSUER NOT
Term Loan COOPERATING; Rating Migrated)
Working Capital 1.65 CRISIL C (ISSUER NOT
Term Loan COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with ABPL for
obtaining NDS through letters/emails dated November 30, 2023,
December 29, 2023 and January 31, 2024 among others, apart from
telephonic communication to seek the same. After non-receipt of NDS
for 2 consecutive months, we also sent a letter dated January 24,
2024 reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of ABPL to confirm timely debt servicing during
these months, but awaits any feedback.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive NDSs from ABPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on ABPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the rating on bank facilities of ABPL
migrated to 'CRISIL C Issuer Not Cooperating'
Incorporated in 2016 by Mr Rajneesh Singhal, ABPL started
commercial operations in April 2022. The company manufactures soft
gelatin capsules and has capacity of 5 crore capsules per month at
its unit in Dehradun, Uttarakhand.
ANTS CONSULTING: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Ants Consulting & Services Private Limited
Ants Skill Varsity, No. 37/1, Yashas Complex,
1 Floor, Singasandra, Begur Hobli, Hosur Main Road,
Bangalore, Karnataka, India, 560068
Insolvency Commencement Date: January 10, 2024
Estimated date of closure of
insolvency resolution process: July 8, 2024
Court: National Company Law Tribunal, Bengaluru Bench
Insolvency
Professional: Mr. Prashant Jain
A501, Shanti Heights Plot No. 2.3.9B/10
Sector 11, Koparkharine,
Thane, Navi Mumbai-400709
Email: ipprashantjain@gmail.com
Email: antsconsulting.cirp@gmail.com
Last date for
submission of claims: January 24, 2024
BINNY LIMITED: CARE Downgrades Issuer Rating to C
-------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Binny Limited (Binny), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Issuer rating - CARE C Revised from CARE BB
(Rating Watch with Developing
Implications) and removed from
Rating Watch with Developing
Implications
Rationale and key rating drivers
The revision in the issuer rating of Binny follows the company
being in receipt of a notice of default in respect of financial
assistance availed by its project developer SPR Construction
Private Limited (SPR). Binny has extended a corporate guarantee for
an amount of INR50 Cr for the assistance availed by SPR which it
believes is already paid but this is yet to be confirmed by the
trustees to the debt. Further, it is observed that the said notice
is for an amount of INR392.34 Cr dues wherein Binny along with
other parties has been tagged as an obligor. CARE Ratings Limited
(CARE Ratings), also notes that there had not been any mention of
the contingent liability on account of the corporate guarantee
extended in the audited accounts of the company for the last three
years.
Further, the rating assigned to Binny had been placed on ‘Rating
watch with Developing Implications' following SEBI's appointment of
M/s. Chokshi & Chokshi LLP, Mumbai for carrying out forensic audit
of the financial statements of the company from March 2014 to March
2021. With no further developments and disclosures with respect to
the forensic audit report ordered by SEBI despite considerable time
lapse and with receipt of a notice of default, CARE Ratings has
removed the ratings from rating watch with development
implications.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Monetization of land banks and income realization from its joint
venture real estate project on a timely basis.
* Improvement in total operating income above INR200 Cr.
* Resolution of default notice received with respect to the
guaranteed debt of the project developer.
Negative factors
* Any unfavourable outcome on the ongoing legal dispute with the
project developer leading to strain in the liquidity of the
company.
Analytical approach: Standalone
Detailed description of the key rating drivers:
Key weaknesses
* Default by real estate developer SPR to whom corporate guarantee
was extended: Binny has received default notice from Catalyst
Trusteeship Limited (Catalyst) in connection with the default of
loans by SPR for loan facilities/debentures totaling INR392.34 Cr.
Binny has extended corporate guarantee and mortgage of its lands
towards the loans availed by SPR. Binny has indicated in the
corporate announcement that it has given corporate guarantee for
INR50 Cr of the referred loan amount, which company believes that
has been already paid as per its calculation but confirmation on
the same is yet to be received from Catalyst/SPR. However, it is
observed that the said notice is for an amount of INR392.34 Cr dues
wherein Binny along with other parties has been tagged as an
obligor. CARE Ratings also notes that there had not been any
mention of the contingent liability on account of the corporate
guarantee extended in the audited accounts of the company for the
last three years. CARE Ratings also notes that the statutory
auditors to the company have also resigned in January 2024 stating
that they are unable to continue as statutory auditors of the
company and new statutory auditor has been appointed.
* Ongoing dispute with real estate developer SPR leading to delay
in realization of income: Binny Ltd has been developing real estate
on its 64-acre plot of land in Perambur, Chennai, in collaboration
with SPR Construction Private Limited (SPR), known as 'SPR City',
with a profit-sharing ratio of 40:60. The project commenced in
2017. Binny has stated in its stock exchange filings that the JDA
with the developer is currently under arbitration and the matter is
still pending at the Hon'ble Madras High Court.
* Exposure of cash flows to real estate sector with inherent
competition and cyclicality: The company is exposed to the
cyclicality associated with the real estate sector, which is
directly linked to the overall macroeconomic scenario, interest
rates and the level of disposable income available to individuals.
Furthermore, the properties developed by Binny/SPR are centered in
the Chennai region, which is highly fragmented with a large number
of developers.
* Regulatory risk associated with the alcohol industry: As a part
of inter group transactions, Binny acquired distillery unit having
capacity of 65 KLPD of Mohan Breweries and Distilleries Limited
(rated CARE D; INC). The Distillery has been taken over by the
company from October 09, 2021. The alcohol industry is subject to
stringent regulations by the respective state and the operations
regarding licensing, pricing and distribution are subject to strict
control by Government.
Key strengths
* Long standing experience of the promoter & established track
record of operations in the Chennai market: Mr. Nandagopal is
associated with the company for over four decades and has extensive
industrial experience. He is supported by other members of top
management (also forming part of the promoter family) having
extensive industrial experience.
Liquidity: Poor
Binny Limited's poor liquidity profile is represented by subdued
cash creation against the backdrop of dispute with the real estate
developer SPR and the developer defaulting on their credit
repayments. This has caused delays in the realization of income
from the monetization of land banks.
Binny Ltd was established in 1969 by a Scheme of Amalgamation of
few entities and was acquired by Mr. M Ethurajan, Mr. M Nandagopal
and Mr. V R Venkatachalam in 1987 when the company was in financial
crisis. The company was revived through Board for Industrial and
Financial Reconstruction (BIFR) package. During FY10 (refers to the
period April 1 to March 31), Binny Limited was demerged and two new
companies Binny Mills (with its 27.76 acre of B&C Mills in
Perambur, Chennai) and S V Global Mill (Head office on 2 acres at
Armenian street, 1.44 acres of waterside west house at Boat Club,
Chennai, 28 acres near Bangalore railway station) were formed and
they were vested with Mr. M Ethurajan and Mr. V R Venkatachalam
respectively. Meanwhile, Binny Limited (with 100-acre land
including a factory with container freight station & logistics
business on 27.75 lakh sq. ft at Perambur, Chennai) came under the
control of Mr. Nandagopal. Binny entered into joint ventures with
real estate developers for development of its land area in FY15 and
subsequently the warehousing operations were stopped from February
2015 and the facilities were demolished for project development.
CHEMIETRON CLEAN: CARE Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Chemietron
Clean Tech Private Limited (CCTPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.46 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term/ 1.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 14,
2022, placed the rating(s) of CCTPL under the 'issuer
non-cooperating' category as CCTPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. CCTPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated October 30, 2023, November 9,
2023, November 19, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
CCTPL was incorporated in May, 2008 as a private limited company by
three promoters led by Mr Ashok Gupta (Age: 73 years). Mr Ashok
Gupta has a long industry experience of around 43 years. CCTPL is
engaged in the business of manufacturing and trading of air filters
and air handling units. CCTPL operates from its ISO 9001:2008
certified manufacturing facilities located at Ahmedabad (Gujarat).
CCTPL is selling its clean room technology product under the brand
name of "Chemietron" and air filters under the brand name of Hygi.
DAS PROCESSORS: CRISIL Cuts Rating on Long/Short Term Debts to D
----------------------------------------------------------------
Due to inadequate information and in line with the Securities and
Exchange Board of India guidelines, CRISIL Ratings had migrated its
ratings on the bank facilities of Das Processors (DP) to 'CRISIL
B/Stable/CRISIL A4 Issuer Not Cooperating'. However, the company's
management has subsequently shared the information necessary for a
comprehensive rating review. Consequently, CRISIL Ratings is
downgraded the ratings to 'CRISIL D/CRISIL D'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Short Term Rating - CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
The ratings reflect delays in servicing of term loan because of
weak liquidity.
The ratings reflect the firm's modest scale of operations,
susceptibility to tender-based operations, large working capital
requirement and constrained financial risk profile. These rating
weaknesses are partially offset by the extensive experience of the
partners in the construction industry.
Key rating drivers & detailed description
Weaknesses:
* Modest scale of operations and susceptibility to tender-based
operations: Revenue has remained modest at Rs 11-17 crore in the
three fiscals through 2023. Furthermore, revenue and profitability
depend entirely on the firm's ability to win tenders, which exposes
it to the risks inherent in the tender-driven business.
* Large working capital requirement: The working capital cycle is
likely to remain stretched over the medium term and will be closely
monitored. Gross current assets (GCAs) were sizeable at 589 days as
on March 31, 2023, because of high inventory of 275 days. The
working capital requirement is funded by bank lines and creditors
which remained at 450 days as on March 31, 2023.
* Constrained financial risk profile: The financial risk profile
remains constrained because of modest networth, low cash accrual
and stretched liquidity.
Strengths:
* Extensive experience of the partners: The partners' experience of
over two decades in the construction industry, their understanding
of market dynamics and healthy relationships with suppliers and
customers should continue to support the business.
Liquidity: Poor
The liquidity is poor leading to delays in servicing of debt
obligations. The bank limit is almost fully utilised. Average net
worth limits and stretched working capital cycle impacts its's
financial flexibility and restrict the financial cushion available
to the company in case of any adverse conditions or downturn in the
business. Current ratio was at 1.32 times on March 31, 2023
Rating Sensitivity Factors
Upward factors
* Track record of timely debt servicing for at least 90 days
* Improvement in the financial risk and liquidity profiles
Established in 2012, DP is based in Chhattisgarh. The firm is
involved in civil construction of roads, bridges and canals,
irrigation and electrification works.
DHARAMPAL PIPE: CARE Keeps B Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Dharampal
Pipe and Tubes Private Limited (DPTPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 22,
2022, placed the rating(s) of DPTPL under the 'issuer
non-cooperating' category as DPTPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. DPTPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated November 7, 2023, November 17,
2023, November 27, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Stable
Dharampal Pipes and Tubes Private Limited (DPTPL) was incorporated
in Year, 2013 as a Private Limited Company by Mr. Ajay Kumar
Singhal and his wife Mrs. Rinki Singhal. DPTPL is engaged in the
business of trading of range wide range of steel/iron pipe and
tubes. The operational unit of the company is located in Sahibabad,
Uttar Pradesh.
DKM AGENCIES: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of DKM
Agencies Private Limited (DAPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.30 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.20 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 19,
2022, placed the rating(s) of DAPL under the 'issuer
non-cooperating' category as DAPL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. DAPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated November 4, 2023, November 14, 2023, November
24, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
DKM Agencies Private Limited (DKM) was incorporated in March 1999
and is currently being managed by Mr Sachin Malik and Ms. Nainy
Malik. DKM is engaged in trading of food products such as food
chemicals, juices, dairy products, bakery products, frozen food,
etc, at its outlet located in Ludhiana, Punjab.
EASTERN MATTRESSES: CRISIL Moves C Ratings to Not Cooperating
-------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Eastern Mattresses Private Limited (EMPL) to 'CRISIL C Issuer Not
Cooperating'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 17 CRISIL C (ISSUER NOT
COOPERATING; Rating Migrated)
Long Term Loan 3.48 CRISIL C (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Long Term 3.02 CRISIL C (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with EMPL for
obtaining NDS through letters/emails dated November 30, 2023,
December 29, 2023 and January 31, 2024 among others, apart from
telephonic communication to seek the same. After non-receipt of NDS
for 2 consecutive months, we also sent a letter dated January 24,
2024 reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of EMPL to confirm timely debt servicing during
these months, but awaits any feedback.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive NDSs from EMPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on EMPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the rating on bank facilities of EMPL
migrated to 'CRISIL C Issuer Not Cooperating'
Incorporated in 1999, EMPL manufactures and sells rubberised coir
mattresses, spring mattresses and polyurethane foam mattresses
under its own brand, Sunidra & Ruby. EMPL is based in Thodupuzha,
Kerala and its operations are managed by Mr Firoz Meeran and Mr
Nawas Meeran.
FLIC MICROWAVES: CARE Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Flic
Microwaves Private Limited (FMPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.33 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 2.25 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 23,
2022, placed the rating(s) of FMPL under the 'issuer
non-cooperating' category as FMPL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. FMPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated November 8, 2023, November 18, 2023, November
28, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not applicable
Hyderabad based Flic Microwave Private Limited (FMPL) was
established as a partnership firm in 1991 by Mr. Prasantha Pradhan
and Mrs. Nivedita Mohanty. Later, the constitution of the firm
changed to Private Limited Company in August 1992. FMPL is engaged
in manufacturing of Microwaves. The Company majorly deals in
Components, Super Components, Sub Systems and EM Systems, etc. FMPL
imports raw material i.e. electrical components from USA and sells
the final product in domestic market. The company majorly deals
with public sector entities such as Defence Research Development
Organisation (DRDO), Bharat Electronics Limited, Defense
Electronics Research Laboratory, Defence Avionocs Research
Establishment, etc. The key person of the company is Mr. Sukumar
Pradhan (Managing Director) with post-graduation in Electronics, he
has nine years' experience as a scientist in Defence Research
Development Organisation (DRDO).
GO FIRST: Granted 60-Day Extension For Insolvency Resolution
------------------------------------------------------------
The Economic Times reports that the National Company Law Tribunal
(NCLT) on Feb. 13 extended by 60 days the deadline for completion
of Go First airline's corporate insolvency resolution process
(CIRP).
Last month, the committee of creditors (CoC) of the budget carrier
had directed the resolution professional (RP) appointed for the
CIRP to seek an extension of 60 days from the tribunal, as they had
received expressions of interest from three prospective resolution
applicants, along with earnest money, ET relates.
Beleaguered Go First owes INR6,521 crore to financial creditors,
and another INR2,660 crore and INR1,202 crore to aircraft lessors
and vendors, respectively.
This is NCLT's second extension to Go First in the last three
months, ET notes.
This time, the tribunal relied on the Supreme Court's judgment in
the Essar Steel India matter, wherein the top court had struck down
the word "mandatorily" appearing in Section 12 of the Insolvency
and Bankruptcy Code (IBC). Section 12 mentions the timeline within
which CIRP initiated under the code shall be wrapped up.
About Go First
Go First, formerly known as GoAir, was an Indian ultra-low-cost
airline based in Mumbai, Maharashtra. Go First was incorporated in
April 2004 as GoAir and commenced flight operations in November the
following year. Its inaugural flight was from Mumbai to Ahmedabad.
The airline is owned by the Wadia Group.
Go First filed an application for voluntary insolvency resolution
proceedings before National Company Law Tribunal (NCLT) on May 2,
2023.
The company said the filing with the NCLT comes after Pratt &
Whitney, the exclusive engine supplier for the airline's Airbus
A320neo aircraft fleet, refused to comply with an order to release
engines to the airline that would have allowed it return to full
operations.
Go First owes INR6,521 crore to its financial creditors, Bank of
Baroda, IDBI Bank, and Deutsche Bank. The airline has a total
liability of about INR11,463 crore to banks, other creditors,
vendors, and others.
On May 10, 2023, the NCLT accepted Go First's voluntary insolvency
petition. The NCLT bench appointed Abhilash Lal as the interim
resolution professional to look after the affairs of Go First and
also suspended its board as part of the insolvency resolution
process.
HOLO PACK: CARE Keeps C Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Holo Pack
Securities (HPS) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.50 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 9,
2022, placed the rating(s) of HPS under the 'issuer
non-cooperating' category as HPS had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. HPS
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 25, 2023, November 4, 2023, November 14,
2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Stable
Holo Pack Securities was established in the year 2015 and
operations were commenced from January 2017. HPS is promoted by
Mrs. M.Goda Devi along with her daughter Ms. M.Ramya Lakshmi at G
Kondur Mandal, Krishna District (Andhra Pradesh). The firm is
engaged in manufacturing of flexible packaging materials along with
secured printing. The firm purchases raw materials like polyester,
LDPE (Low-density polyethylene), aluminium foils, adhesives and
solvents among others from local suppliers. The clientele of the
firm covers Andhra Pradesh and Telangana like Virat Crane
Industries Limited, PVS Laboratories Limited and KCP Sugar
Industries among others. The firm has installed capacity of 2400
tons per annum.
JAYPEE INFRATECH: Panel Seeks NCLT Direction to Implement Plan
--------------------------------------------------------------
The Economic Times reports that amid legal challenges for Suraksha
group's successful bid for debt-laden Jaypee Infratech, the
monitoring panel set up to oversee the insolvency process has moved
the National Company Law Tribunal (NCLT) seeking an appropriate
direction for the smooth and effective implementation of the
resolution plan. While NCLT cleared Suraksha group's resolution
plan back in March 2023, the process is yet to make much progress
as the Yamuna Expressway Industrial Development Authority (YEIDA)
and Jaiprakash Associates have filed petitions before the National
Company Law Appellate Tribunal (NCLAT) challenging the approval, ET
says.
Jaiprakash Associates is the original promoter of Jaypee Infratech,
which entered into insolvency resolution process in 2017.
According to ET, the implementation of Suraksha group's resolution
plan would come as a major relief for more than 20,000 homebuyers
who have invested in Jaypee Infratech projects.
In a regulatory filing on Feb. 12, Jaypee Infratech said there
would be a delay in filing of its annual results for 2022-23 fiscal
and the results for the first three quarters of the current
financial year.
Jaypee Infratech has not been able to finalise its annual accounts
for the 2022-2023 fiscal due to the pending appeals which are
factors beyond its control, according to the filing.
While approving the resolution plan, NCLT ordered setting up of the
Implementation and Monitoring Committee (IMC) for giving effect to
the resolution plan and payments to financial creditors
accordingly, ET relays.
". . . in view of the pending appeals (before NCLAT), IMC is of the
opinion that the books of accounts may be reinstated post the said
appeals attain finality or certainty is achieved with respect to
the pending appeals," the filing said.
ET relates that IMC has filed an application before NCLT, Principal
Bench in New Delhi, "seeking appropriate directions effecting the
smooth and effective implementation of resolution plan", as per the
filing.
"Further, since the annual accounts for the year ended March 31,
2023 were not finalised, the company was not able to prepare the
results for the quarter(s) ended June 30, 2023, for the quarter and
half-year ended September 30, 2023 and for the quarter and nine
months ended December 31, 2023," the filing said.
The company will upload the financial results in due course, it
added.
In compliance with NCLT order, IMC was formed in accordance with
the approved resolution plan.
IMC has five members, including Interim Resolution Professional
(IRP) and two representatives from Suraksha Realty, one individual
representing the institutional financial creditors and an official
representative of homebuyers, ET notes.
According to IMC's latest newsletter for giving key updates/
developments to homebuyers and fixed deposit holder, Suraksha group
has informed that it has submitted a proposal for an amicable
solution to YEIDA for the greater benefit of all stakeholders of
Jaypee Infratech.
The stakeholders, include more than 20,000 homebuyer families who
have been waiting for their homes for the past 10 to 12 years, and
around 10,000 farmer families.
About Jaypee Infratech
Jaypee Infratech Limited (JIL) is engaged in the real estate
development. The Company's business segments include Yamuna
Expressway Project and Healthcare. The Company's Yamuna Expressway
Project is an integrated project, which inter alia includes
construction of 165 kilometers long six lane access controlled
expressway from Noida to Agra with provision for expansion to eight
lane with service roads and associated structures on build, own,
operate and transfer basis. The Company provides operation and
maintenance of Yamuna Expressway for over 36 years, collection of
toll and the rights for development of approximately 25 million
square meters of land for residential, commercial, institutional,
amusement and industrial purposes at over five land parcels along
the expressway. The Healthcare business segment includes
hospitals. The Company has commenced development of its Land
Parcel-1 at Noida, Land Parcel-3 at Mirzapur and Land Parcel-5 at
Agra.
JIL features in the Reserve Bank of India's first list of
non-performing assets accounts and had debt exposure of over
INR9,783 crore as of September 2017. The parent company,
Jaiprakash Associates Ltd. (JAL), owes more than INR29,000 crore to
various banks.
On Aug. 8, 2017, the National Company Law Tribunal (NCLT),
Allahabad bench accepted lender IDBI Bank's plea and classified JIL
as an insolvent company. With this, the board of directors of the
company remains suspended.
Anuj Jain was appointed as Interim Resolution Professional (IRP) to
manage the company's business. The IRP had invited bids from
investors interested in acquiring JIL and completing the stuck real
estate projects in Noida and Greater Noida.
In June 2021, the Committee of Creditors (CoC), which is made up of
banks and homebuyers, gave the Suraksha group authorization to
acquire JIL.
In March 2023, the National Company Law Tribunal (NCLT) authorised
the group's bid to acquire JIL and complete construction about
20,000 flats across various projects in the national capital
region.
JHV STEELS: CARE Lowers Rating on INR11.0cr LT Loan to C
--------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
JHV Steels Limited (JSL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B-; Stable
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 21,
2022, placed the rating(s) of JSL under the ‘issuer
non-cooperating' category as JSL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. JSL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated November 6, 2023, November 16, 2023, November
26, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings for JHV have been revised on account of
non-availability of requisite information. The rating revision also
considers significant losses reported in FY23 compared to FY22.
Analytical approach: Standalone
Outlook: Stable
Kolkata based JHV Steels Limited (JSL) is a limited company
promoted by Mr. Hira Lal Jaiswal. JSL is engaged in manufacturing
of thermo mechanically treated bars (TMT Bars), coal dust and
grains. The manufacturing unit of JSL is located at Mirzapur, Uttar
Pradesh.
KAVINGANGA WEAVING: CRISIL Moves B- Ratings to Not Cooperating
--------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Kavinganga Weaving Mills Private Limited (KWMPL) to 'CRISIL
B-/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9.5 CRISIL B-/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Term Loan 5.5 CRISIL B-/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with KWMPL for
obtaining NDS through letters/emails dated November 30, 2023,
December 29, 2023 and January 31, 2024 among others, apart from
telephonic communication to seek the same. After non-receipt of NDS
for 2 consecutive months, we also sent a letter dated January 24,
2024 reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of KWMPL to confirm timely debt servicing during
these months, but awaits any feedback.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive NDSs from KWMPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on KWMPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information,
Established as a proprietorship firm in the name of Ganga Weaving
by Mr. D. Boopathi, and later converted into a private limited
company in November 2017, Dindigul (Tamil Nadu)-based KWMPL is
engaged in the manufacture of fabrics.
KSR METAL: CRISIL Moves B+ Debt Ratings to Not Cooperating
----------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Sri
KSR Metal and Alloys Private Limited (SKMAPL) to 'CRISIL B+/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Fund- 0. 7 CRISIL B+/Stable (ISSUER NOT
Based Bank Limits COOPERATING; Rating Migrated)
Term Loan 2.3 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with SKMAPL for
obtaining NDS through letters/emails dated November 30, 2023,
December 29, 2023 and January 31, 2024, among others, apart from
telephonic communication to seek the same. After non-receipt of NDS
for 2 consecutive months, we also sent a letter dated January 24,
2024 reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of SKMAPL to confirm timely debt servicing
during these months, but awaits any feedback.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive NDSs from SKMAPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on SKMAPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the rating on bank facilities of SKMAPL
migrated to 'CRISIL B+/Stable Issuer Not Cooperating'.
SKMAPL was incorporated in 2020 to set up new unit for
manufacturing of aluminum ingots & alloy.
SKMAPL is promoted by Ms. Preethi Reddy Kandala, Ms. Keerthi Reddy
Sama and Ms. Sushma Reddy Gunda and started its commercial
operation from June 2022.
LOTUS GREENS: CRISIL Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the rating on NCDs of Lotus Greens
Constructions Private Limited (LGCPL) continues to be 'CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Non Convertible 450 CRISIL D (ISSUER NOT
Debentures COOPERATING)
CRISIL Ratings has been following up with LGCPL for getting
information, through emails and letter dated December 18, 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 LGCPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on LGCPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on NCDs of LGCPL
continues to be 'CRISIL D Issuer Not Cooperating'.
About the Lotus Greens group
The Lotus Greens group is a real estate developer in the National
Capital Region, and its promoters have experience of over 25 years.
The group has built residential, commercial and retail projects,
and information technology special economic zones. The promoters
have also set up schools in Noida (Uttar Pradesh) and Gurugram
(Haryana).
About the project
LGCPL, as a consortium lead, along with other Lotus Green/3C
special purpose vehicles (SPVs), had won the contract for
developing 300 acres in Sector-150, Noida, where it was to set up a
sports-centric residential township. The company owns 25.15 acres
of the land, while the rest is owned by other SPVs including Allure
Developers Pvt. Ltd and Elate Realtors Pvt. Ltd.
Of the total land cost of Rs 2,331 crore, 20% was paid upfront and
80% was to be paid over eight years to Noida Authority.
Status of noncooperation with previous CRA: LGCPL has not
co-operated with Brickwork Ratings India Private Limited (BWR),
which has moved its rating to 'Non-Cooperating category' vide
release dated March 31, 2018. The reason provided by Brickwork
Ratings India Private Limited (BWR) is that company has not
provided the requisite information for monitoring the ratings.
MAGNEWIN ENERGY: CRISIL Hikes Rating on INR1.25cr Cash Loan to B+
-----------------------------------------------------------------
Due to inadequate information and in line with the Securities and
Exchange Board of India guidelines, CRISIL Ratings had migrated its
ratings on the bank facilities of Magnewin Energy Pvt Ltd (MEPL) to
'CRISIL D/CRISIL D Issuer Not Cooperating'. However, the company's
management has subsequently started sharing the information
necessary for a comprehensive rating review. Consequently, CRISIL
Ratings is migrating the ratings to 'CRISIL B+/Stable/CRISIL A4'
from 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.25 CRISIL A4 (Migrated from
'CRISIL D ISSUER NOT
COOPERATING')
Cash Credit 1.5 CRISIL B+/Stable (Migrated
from 'CRISIL D ISSUER NOT
COOPERATING')
Letter of Credit 1.5 CRISIL A4 (Migrated from
'CRISIL D ISSUER NOT
COOPERATING')
Long Term Loan 1.68 CRISIL B+/Stable (Migrated
from 'CRISIL D ISSUER NOT
COOPERATING')
Standby Line
of Credit 0.2 CRISIL B+/Stable (Migrated
from 'CRISIL D ISSUER NOT
COOPERATING')
The ratings upgrade reflects track record of timely debt servicing
owing to improved liquidity.
The ratings reflect susceptibility to volatility in raw material
prices and foreign exchange (forex) rates and exposure to
cyclicality in the end-user industries. These weaknesses are
partially offset by the extensive experience of the promoters in
the electrical components and equipment industry, and the healthy
financial risk profile of the company.
Key Rating Drivers & Detailed Description
Weaknesses:
* Susceptibility to volatility in raw material prices and forex
rates: The major raw material, polypropylene film, is imported from
the US, China and Korea. The company has to book the raw material
2-3 months in advance and the price is fixed in foreign currency.
Any sharp fluctuation in the Indian rupee may adversely impact
profitability as the company does not have a hedging policy to
mitigate the forex risk.
* Exposure to inherent cyclicality in the end-user industries: The
engineering industry is cyclical and moves in line with the level
of activity in the utilities and construction sectors. The company
remains susceptible to the inherent cyclicality in the end-user
industries.
Strengths:
* Extensive experience of the promoters: The promoters have
experience of over three decades in the electrical components and
equipment industry. They are involved in daily operations such as
designing, production decisions and client handling. This has given
them an understanding of market dynamics and enabled them to
establish relationships with suppliers and customers, which will
continue to support the business.
* Healthy financial risk profile: Capital structure was strong
owing to low reliance on external debt, yielding total outside
liabilities to adjusted networth ratio and gearing of less than 1.5
times and 0.5 time, respectively, for the three fiscals through
2023. Networth was moderate at Rs 10.17 crore as on March 31, 2023.
Debt protection metrics were comfortable despite leverage owing to
moderately healthy profitability, as reflected in interest coverage
and net cash accrual to total debt ratios of 6.12 times and 0.47
time, respectively, in fiscal 2023, and are expected at similar
levels over the medium term. The financial risk profile will remain
healthy over the medium term with the expected improvement in
revenue leading to higher net cash accrual
Liquidity: Stretched
Bank limit utilisation was high at 96.39% for the 12 months through
November 2023. Cash accrual, expected at Rs 1.5-1.7 crore per annum
will sufficiently cover yearly term debt obligation of Rs 0.25-0.75
crore over the medium term. In addition, the surplus will cushion
liquidity.
Current ratio was healthy at 1.59 times as on March 31, 2023. Low
gearing and moderate networth support financial flexibility, which
will help to withstand adverse conditions or downturns in the
business.
Outlook: Stable
CRISIL Ratings believes MEPL will continue to benefit from the
extensive experience of its promoters and established relationships
with clients.
Rating Sensitivity factors
Upward factors
* Increase in revenue by 10% and sustenance of operating margin
leading to cash accrual of more than Rs 2.5 crore.
* Improvement in the working capital cycle.
Downward factors
* Net cash accrual below Rs 1 crore on account of decline in
revenue or operating profit.
* Large, debt-funded capital expenditure and stretched working
capital cycle.
Incorporated in 1991, MEPL manufactures electrical capacitors used
for compensating transmission line losses and power factor
improvement. The company manufactures special-purpose capacitors,
high-tension capacitors and low-tension capacitors primarily for
utility companies and the defence sector. It also caters to various
industries such as textile spinning mills, coal fields, chemical
plants and sugar mills.
It is promoted by Mr Vijay Chipalkatti and Mrs. Vijaya Vijay Kumar
Chippalkatti.
OM SHIV: CARE Keeps D Debt Ratings in Not Cooperating Category
--------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Om Shiv
Lumbers Private Limited (OSLPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 1.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 3.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 27,
2022, placed the rating(s) of OSLPL under the 'issuer
non-cooperating' category as OSLPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. OSLPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated November 12, 2023, November
22, 2023, December 2, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Gandhidham-based (Gujarat), OSLPL was incorporated in March 2012 by
Mr. Deepak Khatwani and Mrs. Bhagwati Khatwani. It is engaged in
trading and processing of timber products namely wooden plates,
face veneers, ready pallates, etc. OSLPL also perform job work for
log dimension setting. At present, 27 employees are working under
the company. There are 3 sets of vertical and horizontal sowing
machines with installed capacity of 1500 cubic feet per day. Both
the machineries and factory premises are rented.
PASUPATI SPINNING: CRISIL Lowers Long Term Rating to B+
-------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of
Pasupati Spinning and Weaving Mills Limited (PSWML) to 'CRISIL
B+/Stable/CRISIL A4 Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Short Term Rating - CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with PSWML for
obtaining NDS through letters/emails dated November 30, 2023,
December 29, 2023 and January 31, 2024 among others, apart from
telephonic communication to seek the same. After non-receipt of NDS
for 2 consecutive months, we also sent a letter dated January 24,
2024 reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of PSWML to confirm timely debt servicing during
these months, but awaits any feedback.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive NDSs from PSWML, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on PSWML is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of PSWML
migrated to 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'.
PSWML, incorporated in 1979 by Mr Ramesh Kumar Jain, is a New
Delhi-based company that manufactures cotton yarn, polyester grey
and dyed sewing thread and knitted fabric. It has a sewing thread
manufacturing facility in Kala Amb (Himachal Pradesh) and polyester
viscose yarn manufacturing and spinning units in Dharuhera
(Haryana).
PLAZMA TECHNOLOGIES: CARE Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Plazma
Technologies Private Limited (PTPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 2.63 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 5.80 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 12,
2022, placed the rating(s) of PTPL under the 'issuer
non-cooperating' category as PTPL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. PTPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 28, 2023, November 7, 2023, November 17,
2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Incorporated in 1990, PTPL, formerly known as Plazma Cutting
Equipment Private Limited is a Pune-based company, promoted by Mr
Hughen Thomas and Mrs. Arundhati Thomas. The company is engaged in
the manufacturing of plazma cutting tools and equipment.
SHIEL AUTOS: CRISIL Lowers Rating on Long/Short Term Debts to D
---------------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
Shiel Autos (Shiel) to 'CRISIL D/CRISIL D Issuer Not Cooperating'
from 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating' based on
publicly available information.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Short Term Rating - CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with Shiel for
obtaining information through letters and emails dated February 5,
2024, 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 Shiel , which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on Shiel
is consistent with 'Assessing Information Adequacy Risk'.
Based on the publicly available information, CRISIL Ratings
understands that the company has been classified as willful
defaulter. Hence, CRISIL Ratings has downgraded its ratings on the
bank facilities of Shiel to 'CRISIL D/CRISIL D Issuer Not
Cooperating' from 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating' based on publicly available information.
Based in Agra (Uttar Pradesh), Shiel has been engaged in dealership
for Bajaj brand twowheelers for the past 24 years. The firm has
five showroom cum workshop (Sales Services and Spares) and two
showrooms, all of which are based in and around Agra, Uttar
Pradesh. The firm also has around 15 sales points in rural areas in
and around Agra. The firm's day to day transactions are managed by
the two partners, Mr. Rajeev Rattan, and his brother, Mr. Sanjeev
Rattan.
SMARTRON INDIA: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Smartron India Private Limited
Vaishnavi's Cynosure, Unit No. 9C & 9D,
9th Floor, Gachibowli, Serilingampally,
Survey No. 18 Rangareddi,
Hyderabad, Telangana, India, 500032
Insolvency Commencement Date: January 10, 2024
Estimated date of closure of
insolvency resolution process: July 8, 2024
Court: National Company Law Tribunal, Hyderabad Bench
Insolvency
Professional: Mr. Raghu Babu Gunturu
1st Floor, Golden Heights Plot No. 9,
Opp. Raheja IT Mindspace HUDA,
Techno Enclave, Madhapur, Hyderabad,
Telangana-500081
E-mail: raghu@ezresolve.in
E-mail: smartroncirp@gmail.com
Last date for
submission of claims: January 29, 2024
SPORTA TECHNOLOGIES: NCLT Admits Insolvency Resolution Plea
-----------------------------------------------------------
The Economic Times reports that the Mumbai bench of the National
Company Law Tribunal (NCLT) has admitted Sporta Technologies, which
owns India's largest fantasy sports platform Dream11, under the
corporate insolvency resolution process (CIRP) on an application
filed by the resolution professional of Reward Solutions.
The tribunal appointed Madan Bajrang Lal Vaishnawa as the interim
resolution professional to conduct the insolvency resolution
process, ET discloses.
ET says Piyush Jani, the resolution professional for Reward
Solutions, had approached the NCLT to initiate insolvency
proceedings against Sporta after the company defaulted on its dues
of about INR7.61 crore. Incidentally, Reward Solutions has also
been admitted under the CIRP by the NCLT.
"The corporate debtor (Sporta Technologies), in the exercise of its
due diligence and reasonable prudence, should have made the payment
then and logically saved itself from the rigours of consequent
CIRP," the division bench of judicial member Reeta Kohli and
technical member Madhu Sinha said in its order of February 9.
"Considering the above facts, we are of the considered view that
this petition deserves to be admitted under Section 9 of the code
(Insolvency and Bankruptcy Code)." People close to the development
said the matter is most likely to be settled outside the court, ET
relays.
SREELEKSHMI CASHEW: CRISIL Moves B- Ratings to Not Cooperating
--------------------------------------------------------------
CRISIL Ratings has migrated the ratings on bank facilities of
Sreelekshmi Cashew Enterprises Private Limited (SCEPL) to 'CRISIL
B-/Stable/CRISIL A4 Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Foreign Bill
Discounting 7.00 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
Long Term Loan 5.34 CRISIL B-/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Packing Credit 30.5 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Fund- 0.16 CRISIL B-/Stable (ISSUER NOT
Based Bank Limits COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with SCEPL for
obtaining NDS through letters/emails dated November 30, 2023,
December 29, 2023 and January 31, 2024 among others, apart from
telephonic communication to seek the same. After non-receipt of NDS
for 2 consecutive months, we also sent a letter dated January 24,
2024 reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of SCEPL to confirm timely debt servicing during
these months, but awaits any feedback.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive NDSs from SCEPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on SCEPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of SCEPL
migrated to 'CRISIL B-/Stable/CRISIL A4 Issuer Not Cooperating'.
Initially set up in 1996 as a proprietorship firm named Sreelakshmi
Cashew Company by Mrs. Sreela Yesodharan, SCEPL was subsequently
reconstituted as a partnership firm in 2003 and later converted
into a private limited company in 2019. It is engaged in processing
of raw cashew nuts of various grades to cashew kernels. SCEPL has
11 manufacturing facilities in Kerala and Tamil Nadu. The company
sells its products both in domestic and international markets.
SCEPL is owned and managed by Mr. Sundaran Prabha and Mrs. Sreela
Yesodharan.
SWASTIK OIL: CARE Keeps D Debt Ratings in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Swastik
Oil Refinery Private Limited (SORPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 87.10 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 17.90 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 28,
2022, placed the rating(s) of SORPL under the 'issuer
non-cooperating' category as SORPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. SORPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated November 13, 2023, November
23, 2023, December 3, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not applicable
SORPL incorporated in April 1997, is engaged in manufacturing of
various edible oils (refined palm and rice bran) and Vanaspati
ghee. The company is promoted by Kolkata-based Mr. O.P. Agarwal,
his son Mr. Manoj Agarwal and his nephew Mr. Ashok Agarwal. The
company has a total installed capacity of 20,000 tonnes per annum
(TPA) for vanaspati and 70,000 TPA for refined oil at its
manufacturing facilities located in Howrah (West Bengal).
T.C. AGRO: CRISIL Lowers Rating on INR31cr Cash Loan to D
---------------------------------------------------------
CRISIL Ratings has downgraded its rating on the bank facilities of
T.C. Agro Food Industries (TC Agro) to 'CRISIL D Issuer Not
Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating' based on
publicly available information.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 14 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Cash Credit 31 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with TC Agro for
obtaining information through letters and emails dated January 5,
2024, February 5, 2024, 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 TC Agro, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on T.C.
Agro is consistent with 'Assessing Information Adequacy Risk'.
Based on the publicly available information, CRISIL Ratings
understands that the company has been classified as willful
defaulter. Hence, CRISIL Ratings has downgraded its rating on the
bank facilities of TC Agro to 'CRISIL D Issuer Not Cooperating'
from 'CRISIL B/Stable Issuer Not Cooperating' based on publicly
available information.
(TC Agro) was established as a partnership firm in 1995 with Mr.
Ram Gopal Singla and Mr. Rajendra Kumar as partners. In 2002, the
partnership firm was reconstituted as a proprietorship firm where
Mr. Ram Gopal Singla is a proprietor. The firm is engaged in
milling and sorting of basmati rice. The firm has a manufacturing
unit in Karnal (Haryana) with a milling capacity of 14 tph and
sorting capacity of 8 tph. The firm derives about 5-7 per cent of
its revenues through exports mainly to Gulf Countries and the
balance from the domestic market.
Status of non cooperation with previous CRA
TC Agro did not cooperate with Brickwork Ratings India Private
Limited, which classified it as 'Issuer not cooperative' vide
release dated January 30, 2019. The reason provided by Brickwork
Ratings India Private Limited is non-furnishing of information for
monitoring of ratings.
TARAPUR TRANSFORMERS: CRISIL Keeps D Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Tarapur
Transformers Limited (Tarapur) 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 12 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 5 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 14.25 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Rupee Term Loan 5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with Tarapur for
obtaining information through letters and emails dated September
30, 2022 and December 18, 2023, apart from telephone calls.
However, the issuer has remained non-cooperative.
'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 has been
arrived at without any interaction with the management and is based
on best available, limited or dated information regarding the
company. Such non-cooperation by a rated entity may be a result of
weakening of the 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 Tarapur, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
Tarapur is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of Tarapur continues to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Tarapur, incorporated in 1988, repairs and manufactures power and
distribution transformers. The company was a loss-making entity
when Bilpower Ltd (rated 'CRISIL D/CRISIL D Issuer not
cooperating') acquired 70 per cent of its equity shares in 2006,
after which it started making profits. Tarapur made its initial
public offering in April 2010, following which, Bilpower Ltd's
equity stake in it reduced to 41.46 per cent. Bilpower Ltd
continues to have a controlling stake in Tarapur. Tarapur's unit in
Boisar (Maharashtra) undertakes repairs, while its second unit in
Wada (Maharashtra), which commenced operations in 2008-09,
manufactures transformers. The company has developed facilities (at
an outlay of Rs.430 million) to manufacture transformers ranging
from 1 kilovolt ampere (kVA) to 5000 kVA.
V. SATYA: CARE Keeps C Debt Ratings in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of V. Satya
Murthy (VSM) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.00 CARE C; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term/ 11.00 CARE C/CARE A4; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 9,
2023, placed the rating(s) of VSM under the 'issuer
non-cooperating' category as VSM had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. VSM
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated November 25, 2023, December 5, 2023, December
15, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
M/s V. Satya Murthy was established as proprietary concern in
November, 2003 by Mr. Vemula Satya Murthy. The propriety concern is
engaged in the civil construction business as a special class
contractor. It is engaged in the works like laying of roads and
irrigation works for government organizations covering Irrigation &
C.A.D. Department. Mr. Murthy is a special class contractor and has
experience of more than two decades in civil contract works.
VARAD AGRI: CRISIL Migrates B+ Debt Ratings to Not Cooperating
--------------------------------------------------------------
CRISIL Ratings has migrated the ratings on bank facilities of Varad
Agri Tech Limited (VATL) to 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 9 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Long Term 9 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with VATL for
obtaining NDS through letters/emails dated November 30, 2023,
December 29, 2023 and January 31, 2024 among others, apart from
telephonic communication to seek the same. After non-receipt of NDS
for 2 consecutive months, we also sent a letter dated January 24,
2024 reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of VATL to confirm timely debt servicing during
these months, but awaits any feedback.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive NDSs from VATL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on VATL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of VATL
migrated to 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'.
VATL, incorporated in 1996 in Hyderabad, is engaged in the
production, processing, and sales of self-pollinated seeds such as
Bengal gram, groundnut, bajara and soya bean. The promoter, Mr A
Konda Reddy, manages the operations.
VARDHMAN INDUSTRIAL: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Vardhman
Industrial Steel Private Limited (VISPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 19,
2022, placed the rating(s) of VISPL under the 'issuer
non-cooperating' category as VISPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. VISPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated November 4, 2023, November 14,
2023, November 24, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in 2011, Vardhman Industrial Steel Private Limited
(VISPL) is promoted by Mr Sushil Jain and his wife Ms Anju Jain.
During the year 2011, VIPL took over the business operations two
proprietorship firms i.e. Vardhman Loha & Traders (Proprietor - Mr
Sushil Jain) and Vardhman Industrial Steel Sales (Proprietor – Ms
Anju Jain) engaged in the trading of iron and steel products. VIPL
is engaged in the trading of iron and steel products such as
angles, channels, rounds, beams, plates, flats and tubes. VIPL
operates through its outlet located in Bahadurgarh, Haryana.
=====================
N E W Z E A L A N D
=====================
COOKS TRADING: Court to Hear Wind-Up Petition on Feb. 26
--------------------------------------------------------
A petition to wind up the operations of Cooks Trading 2012 Limited
will be heard before the High Court at Timaru on Feb. 26, 2024, at
10:00 a.m.
Key Alliance Pro Limited filed the petition against the company on
Dec. 19, 2023.
The Petitioner's solicitor is:
Wayne Hofer
Tompkins Wake
Westpac House
430 Victoria Street
Hamilton
CREST APARTMENTS: Court to Hear Wind-Up Petition on Feb. 16
-----------------------------------------------------------
A petition to wind up the operations of Crest Apartments Limited
will be heard before the High Court at Auckland on Feb. 16, 2024,
at 10:45 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Nov. 14, 2023.
The Petitioner's solicitor is:
Hosanna Tanielu
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
HITEA DOWNTOWN: Creditors' Proofs of Debt Due on March 1
--------------------------------------------------------
Creditors of Hitea Downtown Limited are required to file their
proofs of debt by March 1, 2024, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Feb. 1, 2024.
The company's liquidators are:
Kevyn Botes
i-Business Recovery Limited
PO Box 302612
North Harbour
Auckland
LEFKADA LIMITED: Creditors' Proofs of Debt Due on March 2
---------------------------------------------------------
Creditors of Lefkada Limited are required to file their proofs of
debt by March 2, 2024, to be included in the company's dividend
distribution.
The High Court at Christchurch appointed Brenton Hunt of Insolvency
Matters as liquidators on Feb. 2, 2023.
TITAN PARENT: S&P Assigns 'B-' Issuer Credit Rating, Outlook Stable
-------------------------------------------------------------------
S&P Global Ratings assigned its 'B-' long-term issuer credit rating
to Titan Parent New Zealand Ltd. (Titan Parent). The outlook is
stable. Titan Parent, a New Zealand-based online marketplace and
classifieds business, is the parent company of Titan AcquisitionCo
New Zealand Ltd. (B-/Stable/--) and Trade Me Group Ltd.
(B-/Stable/--). It is also the issuer of the group's consolidated
financial statements.
S&P said, "We view Titan AcquisitionCo New Zealand Ltd., the debt
issuing entity for the consolidated group, as a core member of the
group. In addition, we consider Trade Me Group Ltd. to be a holding
company for the consolidated group. Our rating and outlook on Titan
Parent reflect the company's status as the parent of Titan
AcquisitionCo New Zealand Ltd. and Trade Me Group Ltd. The rating
action has no impact on the 'B-' long-term issue rating and '3'
recovery rating on the senior secured first-lien term loans issued
by Titan AcquisitionCo New Zealand Ltd."
YOUNGMAN CONSTRUCTION: Creditors' Proofs of Debt Due on March 8
---------------------------------------------------------------
Creditors of Youngman Construction Limited are required to file
their proofs of debt by March 8, 2024, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Jan. 31, 2024.
The company's liquidator is:
Brenton Hunt
PO Box 13400
City East
Christchurch 8141
=================
S I N G A P O R E
=================
BRAVO BUILDING: Placed Under Judicial Management
------------------------------------------------
Mr. Wong Joo Wan of Alternative Advisors on Feb. 7, 2024, was
appointed as Judicial Manager of Bravo Building Construction Pte
Ltd.
The Judicial Manager may be reached at:
Wong Joo Wan
Alternative Advisors
1 Commonwealth Lane
#06-21 One Commonwealth
Singapore 149544
INVESTWELL PTE: Commences Wind-Up Proceedings
---------------------------------------------
Members of Investwell Pte Ltd on Feb. 5, 2024, passed a resolution
to voluntarily wind up the company's operations.
The company's liquidators are:
Lau Chin Huat
Yeo Boon Keong
c/o Technic Inter-Asia
50 Havelock Road #02-767
Singapore 160050
KSL CAPITAL: Creditors' Proofs of Debt Due on March 13
------------------------------------------------------
Creditors of KSL Capital Partners Asia Pte. Ltd. are required to
file their proofs of debt by March 13, 2024, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Feb. 2, 2024.
The company's liquidators are:
Abuthahir Abdul Gafoor
Yessica Budiman
AAG Corporate
144 Robinson Road
#14-02 Robinson Square
Singapore 068908
LIPPO MALLS: Fitch Lowers LongTerm IDR to 'RD' on Tender Offer
--------------------------------------------------------------
Fitch Ratings has downgraded Lippo Malls Indonesia Retail Trust's
(LMIRT) Long-Term Issuer Default Rating (IDR) to 'RD' (Restricted
Default), from 'C', following the completion of a tender offer.
This is because Fitch considers the transaction to be a distressed
debt exchange (DDE) as it results in a material reduction in terms,
and in its view, was conducted to avoid a default.
Subsequently, Fitch has upgraded LMIRT's Long-Term IDR to 'CC' to
reflect the issuer's post-DDE prospects, which include the high
likelihood of a debt restructuring or a further DDE, in its view.
This is because Fitch believes the trust has limited options to
repay the remaining USD138.4 million of unsecured notes maturing on
19 June 2024 at par value.
Fitch has also upgraded the rating on LMIRT's senior unsecured
notes due 2024 and 2026 to 'CC', from 'C', with a Recovery Rating
of 'RR4'. LMIRT's wholly owned subsidiary, LMIRT Capital Pte. Ltd.,
issued the notes, which are guaranteed by Perpetual (Asia) Limited
in its capacity as trustee of LMIRT.
KEY RATING DRIVERS
Probability of Restructuring, DDE: The Long-Term IDR of 'CC'
reflects its belief that some kind of default is probable on the
remaining USD138.4 million of senior unsecured notes due June 2024.
This is because Fitch thinks the trust is unlikely to raise
sufficient funding to repay the notes at par value, raising the
probability that LMIRT will pursue some form of debt restructuring,
including a further DDE.
Narrowing Repayment Options: The trust has pledged its three best
assets, representing 45% of the total investment property value at
end-2022. Although the remaining assets are unencumbered, there are
higher execution risks in pledging some of them as collateral.
Fitch estimates the value of the remaining unencumbered assets at
around SGD220 million, if Fitch excludes properties with land
titles under agreement-based schemes, assets with weak occupancy
below 70%, and retail spaces within third-party properties.
Furthermore, Fitch thinks a timely disposal of non-core assets of
sufficient value to repay the June 2024 notes at par value, is
unlikely.
Weak Operational Performance: Fitch forecasts net property income
(NPI) of SGD123 million in 2024. This is similar to its 2023
estimate and lower than the trust's 2022 NPI due to the lower
occupancy rate in 2023 following early termination of several lease
agreements with Carrefour and downsizing of Hypermart spaces. Fitch
expects occupancy to only improve gradually, as it will take time
for LMIRT to find tenants to fill the vacancies. Fitch expects its
operations to improve from 2025, when redevelopment activities at
several malls are expected to be completed.
Limited Sponsor Influence: Fitch rates LMIRT on a standalone basis
due to robust regulatory ring-fencing from PT Lippo Karawaci Tbk
(CCC+). Lippo fully owns LMIRT's manager, although Singapore's
Securities and Futures Act prevents Lippo from holding majority
representation on the manager's board. In addition, the sponsor
does not control LMIRT because it holds only a 47% interest. LMIRT,
as a Singapore real-estate investment trust, is also subject to
restrictions on gearing ratios and development activities, and
requires minority shareholders to approve related-party
transactions.
Perpetual Securities Treated as Equity: Fitch treats LMIRT's SGD260
million in perpetual securities, issued in 2016 and 2017, as 100%
equity due to strong going-concern and gone-concern loss absorption
features. This also factors in LMIRT's intention to maintain the
securities as a permanent part of its capital structure. The trust
did not call the SGD140 million securities callable in September
2021 and SGD120 million securities callable in December 2022 amid
weak market sentiment.
High Foreign-Exchange Risk: LMIRT is exposed to high currency risk
as its debt is denominated in US and Singapore dollars, while
revenue is generated solely in rupiah. The proportion of rupiah
debt should increase as the trust explores onshore options, but
Fitch expects foreign-currency debt to remain a significant part of
the capital structure. Therefore, LMIRT will remain exposed to
further rupiah depreciation, which would reduce the Singapore
dollar value of cash flow and assets, increasing pressure on
interest coverage and the loan-to-value ratio (end-December 2023:
44.3%).
DERIVATION SUMMARY
LMIRT's 'CC' rating can be compared with that of Indonesia-based
property developer PT Agung Podomoro Land Tbk (APLN, CC). APLN's
rating is driven by high credit risks and rising probability of a
restructuring of its USD132 million unsecured notes due in June
2024.
KEY ASSUMPTIONS
- Net property income, including from Lippo Mall Puri, of SGD123
million in 2023 and in 2024;
- Capex of SGD11 million in 2023 and SGD35 million in 2024;
- No dividend payout and perpetual coupon distribution in 2023 and
2024.
RECOVERY ANALYSIS
Fitch assumes LMIRT will be liquidated in a bankruptcy rather than
continue as a going concern, as Fitch believes creditors are likely
to maximise recoveries by selling the investment properties.
- Fitch calculates a liquidation value under a distressed scenario
of SGD0.7 billion at end-September 2023.
- Fitch uses stressed capitalisation values to arrive at the
distressed valuation for LMIRT's investment properties. Fitch uses
a 11% capitalisation rate as a reference, higher than the average
of capitalisation rates from recent divestments and acquisitions of
10% due to the portfolio's weak performance and challenging
recovery prospects. This capitalisation rate is applied to Fitch's
estimated net property income from LMIRT's malls that have a Hak
Guna Bangunan (HGB) land title, as well as those with strata-titles
for the 12 months to September 2023.
- The estimate also reflects its assessment of the value of trade
receivables under a liquidation scenario, with a 75% advance rate.
Fitch believes a 25% discount is sufficient to cover potential bad
debt.
These assumptions result in a recovery corresponding to a Recovery
Rating of 'RR2' for the outstanding senior unsecured bonds.
However, the Recovery Rating is capped at 'RR4', as LMIRT derives
its entire economic value from assets in Indonesia even though it
is incorporated in Singapore. Under its Country-Specific Treatment
of Recovery Ratings Criteria, Indonesia falls into Group D of
creditor friendliness, and the Recovery Rating for instruments of
issuers with assets in this group is subject to a soft cap at
'RR4'.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
- A significant and sustained improvement in LMIRT's liquidity,
including the successful refinancing of the senior unsecured notes
due in June 2024.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
- Evidence of a default, or that a default-like process has begun,
including if LMIRT's creditors agree to a DDE, or if the company
enters into a grace period following a missed payment on a material
financial obligation.
LIQUIDITY AND DEBT STRUCTURE
Insufficient Liquidity: Fitch believes LMIRT's liquidity is
insufficient to meet the repayment of the remaining USD138.4
million unsecured notes maturing on 19 June 2024. This is because
of the high execution risks around the trust's ability to pledge
some of its unencumbered properties, and dispose of non-core assets
in the near term, as well as its insufficient cash balance of SGD99
million at end-September 2023.
ISSUER PROFILE
LMIRT is a Singapore-listed real-estate investment trust with a
portfolio of 22 shopping malls and seven retail spaces in
Indonesia. The portfolio was valued at SGD1.7 billion as of
end-September 2023.
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 Recovery Prior
----------- ------ -------- -----
Lippo Malls Indonesia
Retail Trust LT IDR RD Downgrade C
LT IDR CC Upgrade RD
LMIRT Capital Pte. Ltd.
senior unsecured LT CC Upgrade RR4 C
TUASPRING PTE: Court to Hear Wind-Up Petition on Feb. 21
--------------------------------------------------------
A petition to wind up the operations of Tuaspring Pte. Ltd. will be
heard before the High Court of Singapore on Feb. 21, 2024, at 10:00
a.m.
Hyflux Ltd filed the petition against the company on Jan. 16,
2024.
The Petitioner's solicitors are:
Tan Kok Quan Partnership
1 Wallich Street
#07-02 Guoco Tower
Singapore 078881
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2024. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***