/raid1/www/Hosts/bankrupt/TCRAP_Public/240301.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
Friday, March 1, 2024, Vol. 27, No. 45
Headlines
A U S T R A L I A
DC LIVING: Owes Nearly AUD4 Million to Creditors
DC LIVING: Second Creditors' Meeting Set for March 6
DIXON ADVISORY: E&P Class Suit Settlement Pending Court Approval
EUROFLEX AUSTRALIA: Second Creditors' Meeting Set for March 18
G N CONSTRUCTION: Administrators Plan Rescue Deal After Collapse
IAN CUBITT'S: First Creditors' Meeting Set for March 7
JRNN PTY: Second Creditors' Meeting Set for March 6
RENTAL MANAGEMENT: First Creditors' Meeting Set for March 6
C H I N A
HUMAN HORIZONS: HiPhi Approaches State Rival in Search for Revival
UTIME LTD: Recurring Losses Raise Going Concern Doubt
I N D I A
ADITYA INFRA: CARE Keeps B- Debt Rating in Not Cooperating
AGRI BEST: CARE Keeps D Debt Ratings in Not Cooperating Category
AMAR ALLOYS: CARE Keeps B- Debt Rating in Not Cooperating Category
ANURAGAVI GARMENTS: Ind-Ra Affirms BB+ Rating, Outlook Stable
APG SHIMLA: CARE Keeps D Debt Rating in Not Cooperating Category
BYJU'S: Given Three Weeks to Respond to US Lenders' Petition
C S CREAMERY: CARE Reaffirms D Rating on INR7.69cr LT Loan
CAPTRONIC SYSTEMS: CARE Keeps D Debt Ratings in Not Cooperating
CENTRO PROJECTS: CRISIL Keeps D Debt Rating in Not Cooperating
COCHIN GLASS: CRISIL Keeps D Debt Rating in Not Cooperating
DEV RAJ: CRISIL Keeps D Debt Rating in Not Cooperating Category
GLOW MAC: CARE Keeps C Debt Rating in Not Cooperating Category
GOYAL AUTOMOBILES: ICRA Keeps B+ Debt Rating in Not Cooperating
GRIPWELL FORGING: ICRA Keeps B+ Debt Rating in Not Cooperating
HARYANA OILS: CRISIL Keeps D Debt Ratings in Not Cooperating
JASHANK IMPEX: CRISIL Keeps D Debt Rating in Not Cooperating
JYOTI RENEWABLE: ICRA Keeps B+ Debt Ratings in Not Cooperating
KSK ENERGY: CARE Keeps D Debt Rating in Not Cooperating Category
KSK WATER: CARE Keeps D Debt Rating in Not Cooperating Category
LOTUS OVERSEAS: ICRA Keeps B+ Debt Ratings in Not Cooperating
MANGE RAM: CARE Keeps B+ Debt Rating in Not Cooperating Category
MAURIA UDYOG: CARE Keeps D Debt Ratings in Not Cooperating
MEDIMATTER HEALTH: Ind-Ra Affirms B Loan Rating, Outlook Stable
NEO POWER: Ind-Ra Corrects January 23, 2024 Rating Release
ORION EDUTECH: CRISIL Lowers Rating on INR10cr Cash Loan to D
PEC LIMITED: Ind-Ra Keeps D Rating in NonCooperating
PELLET-ENERGY SYSTEMS: CARE Keeps D Rating in Not Cooperating
SARA SUOLE: Ind-Ra Keeps C Bank Loan Rating in NonCooperating
SHEETAL AGRO: CARE Keeps D Debt Rating in Not Cooperating Category
SRS HEALTHCARE: ICRA Keeps D Debt Rating in Not Cooperating
SUDHIR AGRO: ICRA Keeps D Debt Ratings in Not Cooperating
SURAT WOVENSACKS: ICRA Keeps B+ Debt Ratings in Not Cooperating
TABLEZ RETAIL: CARE Reaffirms D Rating on INR17.25cr LT Loan
WALLED CITY: ICRA Withdraws B+ Rating on INR34.23cr Loans
M A L A Y S I A
PHARMANIAGA BHD: Files PN17 Regularisation Plan, To Raise MYR655MM
N E W Z E A L A N D
DIGITAL ASSET: SFO Opens Probe Into Failed Cryptocurrency Platform
GM SCIENTIFIC: Court to Hear Wind-Up Petition on March 15
MACBUR HOLDINGS: Creditors' Proofs of Debt Due on March 28
MGK HOMES: Creditors' Proofs of Debt Due on March 25
R&R RELIEF: Court to Hear Wind-Up Petition on March 8
WAIPOPO LIMITED: PwC Canterbury Appointed as Receivers and Managers
P A K I S T A N
PAKISTAN: China Rolls Over US$2 Billion Loan
S I N G A P O R E
BESPOKE DESIGN: Court Enters Wind-Up Order
E-TRAQ PTE: Court to Hear Wind-Up Petition on March 15
ECOSYS DISTRIBUTION: Court Enters Wind-Up Order
M.S.I.A. PTE: Court to Hear Wind-Up Petition on March 15
NW FOODS: Court to Hear Wind-Up Petition on March 15
S O U T H K O R E A
TERRAFORM LABS: SEC Goes After US$166MM 'Slush Fund' for Dentons
- - - - -
=================
A U S T R A L I A
=================
DC LIVING: Owes Nearly AUD4 Million to Creditors
------------------------------------------------
News.com.au reports that a collapsed building firm owes nearly AUD4
million to creditors and almost half of that is money staff members
have missed out on.
Earlier this month, news.com.au reported that DC Living Pty Ltd,
trading under the names Living Homes VIC and Living Homes QLD, had
gone into administration.
The builder, headquartered in Brisbane, had undertaken more than
AUD10 million worth of construction work since July and had at
least 29 active sites on its books, according to the Queensland
Building and Construction Commission (QBCC).
According to news.com.au, the appointed administrators, Daniel
Quinn and David Stimpson of insolvency firm SV Partners, informed
creditors that DC Living had ceased trading and the QBCC has since
cancelled its building licence.
They have now released a report to creditors, obtained by
news.com.au, which shows the business has hefty debts to both trade
suppliers and staff.
A sign reading "pay up ya flog" has adorned the site of at least
one DC Living build that news.com.au knows of.
DC Living owes AUD1.171 million in unpaid wages to workers, and a
further AUD155,000 in superannuation.
The tax office is also owed AUD413,000 in PAYG and GST.
On top of that, trade suppliers are owed AUD2.229 million in unpaid
invoices, news.com.au discloses.
The company has assets worth only an estimated AUD46,000.
That comes in at a grand total of AUD3.8 million owed.
Creditors include trade suppliers, staff, the tax department,
landlords, utilities companies, vehicle companies for leases and
personal loans from the directors.
News.com.au counted 75 trade creditors owed money.
News.com.au previously reported that when DC Living went under,
tradies rushed to the build sites to collect their skip bins and
fencing.
One customer, Jamie, who preferred not to share his last name, said
his site had been stripped bare as a result.
"Basically we found out on the Friday that they (DC Living) had
gone under," Jamie told news.com.au. "We were like ‘Oh my god'."
That weekend, the tradies came and took their stuff back from his
site, leaving some rubbish behind in the process.
News.com.au understands other customers have had a similar
experience.
DC LIVING: Second Creditors' Meeting Set for March 6
----------------------------------------------------
A second meeting of creditors in the proceedings of DC Living Pty
Ltd has been set for March 6, 2024 at 3:00 p.m. via virtual meeting
only.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by March 5, 2024 at 4:00 p.m.
Daniel Jon Quinn and David Michael Stimpson of SV Partners were
appointed as administrators of the company on Jan. 31, 2024.
DIXON ADVISORY: E&P Class Suit Settlement Pending Court Approval
----------------------------------------------------------------
Financial Standard reports that the federal court will soon
determine if it will approve the AUD16 million to settle the class
action against E&P Financial Group as some victims of Dixon
Advisory and Superannuation Services (DASS) are running out of time
to make a claim.
On April 3, 2024, the federal court will decide if the conditional
settlement announced on Nov. 14, 2023 should be given the green
light.
According to Financial Standard, the lawsuit led by Shine Lawyers
alleged that E&P's financial advisers, when they were operating
under DASS, gave unsuitable advice that did not consider clients'
particular needs or entire financial circumstances. Former E&P
chief executive Alan Dixon and former director Christopher Brown
were also named in the lawsuit.
In an update to the ASX, E&P said that if the conditional
settlement is approved, it "will be an important milestone" for the
company, Financial Standard relays.
"The amount contemplated in the Deed of Company Arrangement (DOCA)
comprised of AUD4 million from E&P (which was fully provisioned in
EP1's accounts in December 2022) as well as remaining available
insurance proceeds of at least AUD12 million," the company said.
Financial Standard says compensating DASS investors continues to
drag on as the Australian Financial Complaints Authority's (AFCA)
released a lead decision on February 15 in a bid to help more than
1,900 complainant. This is essentially a template that summarises
the core issues and principles that can be applied to a batch of
similar cases.
According to Financial Standard, Melbourne-based law firm Mackay
Chapman said that there are approximately 2,550 DASS self-managed
super fund (SMSF) clients who have not yet lodged a complaint and
have until at least April 8, 2024 to do so.
"They have 'at least' until April 8, 2024 because the Australian
Financial Services Licence (AFSL) held by Dixon Advisory was
cancelled by ASIC on April 5, 2023," Mackay Chapman executive
counsel Matthew Kennedy and director Michael Chapman warned.
"If or when Dixon Advisory ceases to be a member of AFCA, which may
be on or after 8 April 2024, the ability to claim against it in
AFCA will lapse. Any Dixon Advisory clients who have not brought a
claim by that point may not be able to participate in the
Commonwealth Government-operated CSLR.
"The CSLR is designed to pay out compensation awarded by AFCA where
the financial firm in question has entered external administration.
It is unlikely Dixon Advisory will remain a member of AFCA after
April 8, 2024. It is therefore probably now or never for the
remaining SMSFs who have not yet lodged complaints."
The CSLR officially opens on April 2. Jo-Anne Bloch has been
appointed to chair the scheme, Financial Standard adds.
About Dixon Advisory
Both Dixon Advisory and E&P Operations were wholly owned
subsidiaries of E&P Financial Group Limited.
Dixon Advisory previously held an Australian Financial Services
licence and operated a financial advice business focused on
providing financial advice, investment advice, portfolio management
and superannuation administration services to retail clients.
As reported in the Troubled Company Reporter-Asia Pacific in
January 2022, E&P Financial Group's wholly owned subsidiary Dixon
Advisory and Superannuation Services (DASS) has appointed PwC
Partners Stephen Longley and Craig Crosbie as voluntary
administrators. According to themarketherald.com.au, E&P said the
appointment was made after the DASS directors determined mounting
actual and potential liabilities were likely to result in DASS
becoming insolvent at some future time.
On Dec. 16, 2022, a deed of company arrangement (DOCA) was passed
by Dixon Advisory's creditors, which among other things required
E&P Operations to pay an amount of AUD17,662,489 to Dixon Advisory
less a settlement adjustment for expenses incurred by E&P
Operations during the administration period.
EUROFLEX AUSTRALIA: Second Creditors' Meeting Set for March 18
--------------------------------------------------------------
A second meeting of creditors in the proceedings of Euroflex
Australia Pty Ltd has been set for March 18, 2024 at 3:00 p.m. at
Level 8, 80 Clarance Street in Sydney and via virtual meeting
technology.
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 March 15, 2024 at 5:00 p.m.
Clifford John Sanderson of Dissolve was appointed as administrator
of the company on Feb. 12, 2024.
G N CONSTRUCTION: Administrators Plan Rescue Deal After Collapse
----------------------------------------------------------------
The West Australian reports that administrators hope to pull
together a rescue deal following the collapse of one of the State's
biggest construction formwork companies.
Osborne Park-based contractor G N Construction with debts believed
to be north of AUD10 million called in Cameron Shaw and Richard
Albarran of Hall Chadwick earlier this month, the report notes.
IAN CUBITT'S: First Creditors' Meeting Set for March 7
------------------------------------------------------
A first meeting of the creditors in the proceedings of Ian Cubitt's
Classic Home Improvements Pty Limited will be held on March 7, 2024
at 3:00 p.m. at the offices of RSM Australia Partners at Level 13,
60 Castlereagh Street in Sydney and via electronic means.
Richard Stone and Brett Lord of RSM Australia Partners were
appointed as administrators of the company on Feb. 26, 2024.
JRNN PTY: Second Creditors' Meeting Set for March 6
---------------------------------------------------
A second meeting of creditors in the proceedings of JRNN Pty Ltd
has been set for March 6, 2024 at 11:00 a.m. via teleconference.
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 March 5, 2024 at 4:00 p.m.
Jason Tang and Ozem Kassem of KPT Restructuring were appointed as
administrators of the company on Jan. 31, 2024.
RENTAL MANAGEMENT: First Creditors' Meeting Set for March 6
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Rental
Management Australia (Qld) Pty Ltd will be held on March 6, 2024 at
9:00 a.m. at the offices of SV Partners at 22 Market Street in
Brisbane.
Terry Grant Van der Velde and Terrence John Rose of SV Partners
were appointed as administrators of the company on Feb. 23, 2024.
=========
C H I N A
=========
HUMAN HORIZONS: HiPhi Approaches State Rival in Search for Revival
------------------------------------------------------------------
Caixin Global reports that China's beleaguered premium electric
vehicle startup HiPhi is reaching out to the state-owned automotive
behemoth Changan Automobile Co. Ltd. as the cash-strapped carmaker
faces a ticking clock in its quest for survival.
Ding Lei, the founder of HiPhi, visited the headquarters of Changan
Automobile in Chongqing on Feb. 27 and met with chairman Zhu
Huarong, Caixin learned.
Headquartered in Shanghai, China, Human Horizons Technology --
https://www.human-horizons.com/ -- makes electric cars under the
HiPhi brand and develops autonomous driving technology. It operates
its production and assembly smart plant in Yancheng, Jiangsu
Province, and its parts boutique prototype factory in Jinqiao,
Shanghai.
As reported in the Troubled Company Reporter-Asia Pacific on Feb.
26, 2024, Ding Lei, the founder of HiPhi, said companies had made
approaches to the carmaker for potential acquisition, investment or
restructuring, and it may now have a three-month window to try to
stay afloat. Caixin Global said the brand under Shanghai-based
manufacturer Human Horizons Group Inc. announced internally on Feb.
18 that it would halt production for six months due to financial
difficulties.
Its founder's slow response to financial woes and public relations
blunders contributed to the apparent downfall of Chinese luxury
electric vehicle (EV) brand HiPhi, people familiar with the company
told Caixin, with the carmaker temporarily shuttering production
and cutting its workforce.
The premium brand under Shanghai-based manufacturer Human Horizons
Group Inc. has dismissed contract workers at its manufacturing
facility located in Yancheng, Jiangsu province, one HiPhi employee
told Caixin on Feb. 20.
UTIME LTD: Recurring Losses Raise Going Concern Doubt
-----------------------------------------------------
UTime Limited disclosed in its financial results for the six months
ended September 30, 2023, that substantial doubt exists about its
ability to continue as a going concern.
According to the Company, it has suffered recurring losses from
operations that raise substantial doubt about its ability to
continue as a going concern.
As of September 30, 2023, the Company had current assets of
RMB237.2 million (US$33.0 million) and current liabilities of
RMB255.6 million (US$35.6 million), resulting in a working capital
deficit of approximately RMB18.4 million (US$2.6 million). As of
March 31, 2023, the Company had current assets of RMB237.0 million
and current liabilities of RMB245.7 million, resulting in a working
capital deficit of approximately RMB8.7 million.
The Company had accumulated deficit of RMB175.9 million and
RMB186.4 million (US$26.0 million) as of March 31, 2023 and
September 30, 2023, respectively.
For the six months ended September 30, 2023, the Company incurred a
net loss of RMB11.8 million (US$1.6 million).
The Company continues to focus on improving operational efficiency
and cost reductions, developing core cash-generating business and
enhancing efficiency. The Company expects that the existing and
future cash generated from operation will be sufficient to fund the
future operating expenses and capital expenditure requirements. In
addition, the Company is also working on raising additional funding
to finance the operations as well as business expansion.
As of September 30, 2023, the Company had US$42,970,000 in total
assets, US$35,598,000 in total current liabilities, US$3,325,000 in
total non-current liabilities, and US$4,047,000 in total
shareholders' equity.
A full-text copy of the Company's report filed on Form 6-K with the
Securities and Exchange Commission is available at
http://tinyurl.com/bdzs8nzp
About UTime LTD
Shenzhen, China-based UTime Limited was incorporated as an exempted
company with limited liability under the laws of the Cayman Islands
on October 9, 2018. UTime Limited does not conduct any substantive
operations on its own but instead conducts its business operations
through its subsidiaries, variable interest entity ("VIE") and
subsidiaries of the VIE. UTime Limited, its subsidiaries, VIE and
subsidiaries of the VIE (together, the "Company") is primarily
engaged in the operation of designing, manufacturing and marketing
mobile communication devices, and selling a variety of related
accessories.
=========
I N D I A
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ADITYA INFRA: CARE Keeps B- Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Aditya
Infra and Agri Business Private Limited (AIABPL) continue to remain
in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.00 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 6,
2022, placed the rating(s) of AIABPL under the 'issuer
non-cooperating' category as AIABPL 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. AIABPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated October 22, 2023, November 1,
2023, November 11, 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).
AIABPL was incorporated in 2011 by Mr U. Sadananda Nayak and Mr U.
Aditya Nayak and has been engaged in civil construction of roads,
water drainages etc. The company operates as sub-contractor for a
fixed set of contractors' viz. M/s Yojaka India Private Limited,
M/s Liya Infratech Private Limited and M/s Iqbal Ahmed Infra
Projects Private Limited. AIABPL mainly operates in the state of
Karnataka; however, it has undertaken few contracts in Kerala and
Assam as well. Moreover, the promoters are also engaged in
agricultural commodity export activities through a group concern
viz. Entrack Overseas Private Limited for over 4 years now.
AGRI BEST: CARE Keeps D Debt Ratings in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Agri Best
India Limited (ABIL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 10.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Short Term Bank 7.00 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 21,
2022, placed the rating(s) of ABIL under the 'issuer
non-cooperating' category as ABIL 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. ABIL
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).
Agri Best India Ltd (ABIL), part of Agri Best Group, was promoted
in September 2010 by Mr. Gopal Sharma, Mrs. Preeti Sharma & Mr.
Petrus Adrianus Antinius Joseph Van Pinxteren. The company is
engaged in processing and supplying of milk and various dairy
products viz. butter, cheese, skimmed milk, skimmed milk powder,
Ghee etc. The company operates at a leased plant at Palwal,
Haryana.
AMAR ALLOYS: CARE Keeps B- Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Amar Alloys
Private Limited (AAPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 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 January 17,
2023, placed the rating(s) of AAPL under the 'issuer
non-cooperating' category as AAPL 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. AAPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated December 3, 2023, December 13, 2023, December
23, 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).
Amar Alloys Private Limited (AAPL) was incorporated as a private
limited company in August 1989 and was engaged in the manufacturing
of TMT bars. However, in 1997, the company changed its nature of
business. AAP is currently being managed by Mr. Rakesh Kumar and
Mr. Brij Bhushan as its directors namely. From 1997 onwards, the
company is engaged in the processing of wheat and sale of its
by-products under the name of "Amar Roller Flour Mills" at its
manufacturing facility located in Panchkula, Haryana.
ANURAGAVI GARMENTS: Ind-Ra Affirms BB+ Rating, Outlook Stable
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Sri Anuragavi
Garments' (SAG) bank facility rating as follows:
-- INR400 mil. Fund-based working capital limits affirmed with
IND BB+/Stable/ IND A4+ rating.
Analytical Approach: Ind-Ra continues to take standalone approach
to arrive at SAG's ratings.
Key Rating Drivers
The affirmation reflects SAG's continued small scale of operation,
as indicated by revenue of INR1,217.17 million in FY23 (FY22:
INR1,151.08 million). The revenue increased in FY23 on account of a
rise in the number of orders executed by the company. In 9MFY24,
SAG achieved a revenue of INR716.36 million. The firm's outstanding
order book was INR850 million at end-December 2023, out of which
INR502.94 million is to be executed by March 2024. Ind-Ra expects
the revenue to increase further in FY24 and over the medium term
due to a continued increase in the number of orders executed by the
company.
The ratings also reflect SAG's average EBITDA margins. The margin
fell to 9.41% in FY23 (FY22: 10.02%) as SAG was unable to pass on
the rise in raw material prices. The return on capital employed was
12.5% in FY23 (FY22: 11.3%). Ind-Ra expects the margins to remain
at similar level in medium term due to fluctuation in yarn prices.
The ratings are supported by SAG's comfortable credit metrics, with
a gross interest coverage (operating EBITDA/gross interest expense)
of 3.91x in FY23 (FY22: 3.93x) and net leverage (adjusted net
debt/operating EBITDAR) of 2.16x (3.22x). The net leverage improved
in FY23 on account of higher cash accruals along with a decrease in
the total debt, resulting from repayment of long-term debt and
lower utilization of fund based working capital limits. However,
the interest coverage remained at similar levels in FY23 due to a
slight decline in the EBITDA to INR114.5 million (INR115.29).
Ind-Ra expects the credit metrics to marginally deteriorate in FY24
on account of higher utilization levels of fund-based limits and
the consequent rise in interest expenses.
Liquidity Indicator – Stretched: The firm has debt payment
obligations of INR29 million in FY24 and INR30.1 million in FY25.
Furthermore, SAG does not have any capital market exposure and
relies on banks and financial institutions to meet its funding
requirements. The average maximum utilization of the fund-based
limits was 75.60% during the 12 months ended December 2023. The net
working capital cycle improved to 65 days in FY23 (FY22: 143 days)
due to a decrease in the debtor days to 47 (76) owing to better
recovery from customers and decline in inventory days to 67 days
(117 days). The cash flow from operations improved to INR173.14
million in FY23 (FY22: 158.77 million), mainly due to favorable
changes in working capital. Subsequently, the free cashflow also
improved to INR145.59 million (INR139.5 million). In FY23, SAG had
cash and cash equivalents of INR38.22 million (FY22: INR20.58
million).
The ratings are supported by the promoters' experience of nearly
three decades in garment manufacturing, leading to established
relationships with suppliers and customers, which ensure
competitive prices and repeat orders.
Rating Sensitivities
Negative: Deterioration in the scale of operations, leading to
weakening of the credit metrics and/or deterioration in the
liquidity position on a sustained basis, will be negative for the
ratings.
Positive: A substantial increase in the scale of operations, along
with an improvement in the liquidity position and the credit
metrics with the leverage sustaining below 3.5x, will be positive
for the ratings.
Company Profile
Established in 2005, SAG is a partnership firm in Tirupur, Tamil
Nadu, engaged in manufacturing and export of women, men, kids and
infant garments. The firm has four manufacturing units. The firm is
promoted by N Govindasamy. The business operations are managed by
the managing partner N Govindasamy, and other partners G. Radhamani
and K. Mohanraj, who share profits and loss in the ratio of 40%,30%
and 20% respectively. The operations of the firm are primarily
export-oriented with a major portion of the products being exported
to customers in the US and European countries. The total production
capacity is 1.5 million pieces/month.
APG SHIMLA: CARE Keeps D Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of APG Shimla
University (ASU) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 46.81 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 January 17,
2023, placed the rating(s) of ASU under the 'issuer
non-cooperating' category as ASU 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. ASU
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated December 3, 2023, December 13, 2023, December
23, 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).
APG is an educational trust formed in November 2004 by Mr Pramod
Goyal and his brother Mr Rajesh Goyal with an objective to provide
education services. The campus is located in Shimla, spread over an
area of 88 acres with all modern facilities and latest available
technology. APG is providing post-graduation, graduation and
diploma courses like engineering, management, hotel management,
architecture, journalism, law, arts, fashion designing and mass
communication. APG has started its first academic session in
September 2012. APG has four group concerns.
BYJU'S: Given Three Weeks to Respond to US Lenders' Petition
------------------------------------------------------------
The Economic Times reports that the National Company Law Tribunal
(NCLT) on Feb. 28 told Byju's to respond to two separate insolvency
petitions filed against the troubled edtech firm by US lenders and
the Board of Control for Cricket in India (BCCI).
In the first matter, the Bengaluru bench of NCLT provided Byju's
parent Think & Learn three weeks from now to file its objections to
a petition filed by Glas Trust Company LLC, the administrative
agent appointed by a group of lenders that had extended a
$1.2-billion term loan B to its US subsidiary Alpha Inc to collect
the debt under the guarantee agreement, ET relays.
In the matter involving Glas Trust, the tribunal has issued a
notice to the embattled edtech firm for payment defaults of the
loan that it had guaranteed.
ET relates that the petitioner - that claims to collectively own
more than 85% of the term loan B - invoked the guarantee provided
by Think & Learn.
In a separate case, BCCI's counsel on Feb. 28 told the Bengaluru
bench of NCLT that Byju's has not yet paid pending due of Rs 158
crore, according to ET.
ET says the counsel claimed that Byju's had already deducted tax
deducted at source (TDS) against invoices that it received from
BCCI, but it never paid the invoice amount to the cricket board.
The dispute is over Byju's team India jersey sponsorship deal
signed with the Indian cricket board in 2019.
The BCCI counsel told NCLT that Byju's had asked it to encash Rs
143 crore performance bank guarantee, which the edtech firm had
provided, and said the remaining amount will be paid later.
ET adds the tribunal on Feb. 28 provided time to BCCI's counsel to
file the judgments, and Byju's counsel to file a comprehensive
reply after that.
Amid a worsening business demand for players operating in the
business-to-consumer K-12 business post-Covid, Byju's has found
itself in multiple tussles ranging from non-payment of several
dues, employee salaries, incessant layoffs and a much-delayed
reporting of its financials among other matters.
ET recalls that on January 25, the group of US lenders had first
petitioned the bankruptcy court in India to initiate insolvency
proceedings against Think & Learn, exacerbating the challenges for
a company that is desperately scouting for funds to keep operations
running amid a slowdown in the edtech sector and regulatory
scrutiny.
The lenders have been in negotiation with the company over
prepayment of a $1.2-billion term loan taken by Byju's Alpha even
as the two sides also continued to fight a legal battle in US
courts.
The counsel for Glas Trust told the court that Byju's Alpha owes
money to about 100 lenders, adds ET.
About Byju's
Based in Bengaluru, Karnataka, India, Byju's operates an online
learning platform intended to deliver engaging and accessible
education. The company's platform makes use of original content,
watch-and-learn videos, animations, and interactive simulations
that make learning contextual, visual, and practical, enabling
students to receive a personalized educational experience.
As reported in the Troubled Company Reporter-Asia Pacific on Nov.
23, 2023, the Enforcement Directorate, India's federal financial
crime-fighting agency, has issued a show-cause notice to education
tech company Byju's for alleged violations of foreign exchange
rules, the agency said in a statement on Nov. 11.
Reuters said the agency alleged violations by the company worth
over INR93 billion ($1.12 billion) under the Foreign Exchange
Management Act (FEMA), and has sent notices to founder Byju
Raveendran and parent company Think & Learn Pvt Ltd. Byju's
violated FEMA norms by not submitting documents of imports against
advance remittances made outside India, and failing to realize
proceeds of exports, the Enforcement Directorate said. The company
also delayed filing of documents against the foreign investment
received and failed to allot shares against these, it added.
The TCR-AP, citing Moneycontrol, reported on Jan. 26, 2024, that
foreign lenders, who collectively extended more than 85% of Byju's
$1.2 billion term loan, have filed an insolvency petition against
the online tutor in India, people directly aware of the development
said.
Moneycontrol related that the bankruptcy petition was filed in
January 2024 in the Bengaluru bench of the National Company Law
Tribunal (NCLT), the people said, requesting anonymity.
As reported in the Troubled Company Reporter-Asia Pacific on Feb.
5, 2024, a U.S. unit of Byju's has filed for Chapter 11 bankruptcy
proceedings in the U.S. court of Delaware, listing liabilities in
the range of $1 billion to $10 billion.
Byju's Alpha unit listed its assets in the range of $500 million to
$1 billion, according to a court filing, which showed estimated
creditors in the range of 100 to 199, according to Reuters.
C S CREAMERY: CARE Reaffirms D Rating on INR7.69cr LT Loan
----------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of C
S Creamery Private Limited (CS), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 7.69 CARE D Reaffirmed
Rationale and key rating drivers
The rating assigned to the bank facilities of C S Creamery Private
Limited (CS) continues to factor in the delays in debt servicing by
company. This is due to continuing operating losses being incurred
by the company and delay in receipt of funding support from parent
in timely manner.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Delay free track record of operations for a continuous period of
more than three months and improvement in liquidity position.
Negative factors: Not Applicable
Analytical approach: Standalone
Outlook: Not Applicable
Detailed description of the key rating drivers:
Key weaknesses
* Continuing delays in debt servicing: Company have shared the bank
statements from February 2023 to January 2024 in which CARE Ratings
has observed the continuation of delays in interest and term loan
EMI payments in almost every month. Moreover, as per banker
interaction the delays are still continuing in servicing the
interest and debt repayments obligations.
Liquidity: Poor
Liquidity of the company was largely driven from its resourceful
promoters. The operations of the company were severely impacted
during the first and second wave of Covid-19 pandemic and the
liquidity from the core operations is poor resulting in delays in
debt repayments.
Consumer Discretionary Consumer Services Retailing Distributors
Kochi (Kerala) based, C S Creamery Private Limited was incorporated
in 2016 and full owned subsidiary of Tablez Food Company Private
Limited (TFC). TFC is promoted by Mr. Adeeb Ahamed and Ms. Shafeena
Yusuff Ali. The company holds the master franchise agreement with
the renowned American ice cream brand Cold Stone to operate ice
cream parlours under Franchise
license from MTY Food Group Inc. (Kahala Group).
CAPTRONIC SYSTEMS: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Captronic
Systems Private Limited (CSPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.71 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 9.50 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 2,
2022, placed the rating(s) of CSPL under the 'issuer
non-cooperating' category as CSPL 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. CSPL
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, February 16,
2024.
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).
Bangalore, Karnataka based Captronics Systems Private Limited
(CSPL) specialized in providing custom-built Automated Test
Equipment (ATE's), Automation & Data Acquisition services to
Aerospace & Defense, Nuclear, Automotive and manufacturing
industries.
CENTRO PROJECTS: CRISIL Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Centro
Projects and Marketing (CPM) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 7 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with CPM for
obtaining information through letter and email dated January 5,
2024 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 CPM, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on CPM
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
CPM continues to be 'CRISIL D Issuer Not Cooperating'.
CPM, set up in 2014, operates Centro Mall at Kodungallur in Kerala.
Spread over 100,000 square feet, the mall became operational in
February 2016. The firm is promoted by Mr Basheer and his wife Ms
Haseena.
COCHIN GLASS: CRISIL Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Cochin Glass
House Private Limited (CGPL) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with CGPL for
obtaining information through letter and email dated January 5,
2024 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 rating 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 CGPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on CGPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
CGPL continues to be 'CRISIL D Issuer Not Cooperating'.
CGPL, established in 2010, trades in glass and plywood. Operations
of the Cochin-based company are managed by Mr Shajen K R.
DEV RAJ: CRISIL Keeps D Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Dev Raj
Institute of Management and Technology Society (DRIMT) continues to
be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 9.75 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with DRIMT for
obtaining information through letter and email dated January 5,
2024 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 DRIMT, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on DRIMT
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
DRIMT continues to be 'CRISIL D Issuer Not Cooperating'.
DRIMT was set up in 2010 by promoter and chairman, Mr Danish Gupta
and his family, based in Ferozepur (Punjab). The society offers
academic programmes through its institute, Dev Raj Group's
Technical Campus. DRIMT is affiliated with the Punjab Technical
University (PTU), Jalandhar, and approved by All India Council for
Technical Education (AICTE), Ministry of Human Resource
Development.
GLOW MAC: CARE Keeps C Debt Rating in Not Cooperating Category
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Glow Mac
Lighting Private Limited (GMLPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 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 January 10,
2023, placed the rating(s) of GMLPL under the 'issuer
non-cooperating' category as GMLPL 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. GMLPL continues to be noncooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated November 26, 2023, December 6,
2023, February 15, 2024.
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).
Rajasthan based Glow Mac lighting Private Limited (GMLPL),
incorporated in February 18, 2008, and is being managed by Mr. Arun
Kumar Jain and Mr. Vibhor Jain. The company is engaged in the
manufacturing of various electrical items such as LED (Light
Emitting Diode) and Non-LED lights such as Garden Light, Bollard
light, Wall Light, Street Light Pole etc and fittings and fixtures
at its manufacturing facility located in Bhiwadi (Rajasthan).
GOYAL AUTOMOBILES: ICRA Keeps B+ Debt Rating in Not Cooperating
---------------------------------------------------------------
ICRA has kept the Long-term rating for the bank facilities of Goyal
Automobiles in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Goyal Automobiles, ICRA has been trying to seek information
from the entity so as to monitor its performance. Further, ICRA has
been sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Incorporated in 2000 as a proprietorship firm, Goyal Automobiles
(GA) is an authorised dealer for vehicles manufactured by Hero
Motocorp Limited (HML). The company sells vehicles and provides
ancillary services that include vehicle servicing and sale of spare
parts and accessories from its showroom based in Raigarh,
Chhattisgarh.
GRIPWELL FORGING: ICRA Keeps B+ Debt Rating in Not Cooperating
--------------------------------------------------------------
ICRA has kept the Long-Term of Gripwell Forging & Tools in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B+ (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 7.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Gripwell Forging & Tools, ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Established in 1948, Gripwell Forging and Tools, a proprietorship
concern, was started by Sardar Kesar Singh and is primarily
involved in the manufacturing and exporting of hand tools, having a
diversified product range under it. Mr. Gunit Singh Rana took over
the concern, acting as the executive director (also the proprietor)
along with Mr. Ajit Singh Rana, acting as the president. In 1998,
Gripwell Forgings & Tools obtained the ISO 9002 System & Procedures
certification. Subsequently, it upgraded to the ISO 9001:2008
Quality System with certifications from Intertek Group PLC.
Products such as Chrome Vanadium Steel Spanners and Steel Vices are
approved for safety and quality by TUV Rheinland-Germany and carry
the coveted GS mark.
HARYANA OILS: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Haryana Oils
and Soya Limited (HOSL) continue to be 'CRISIL D/CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Letter of Credit 95 CRISIL D (Issuer Not
Cooperating)
Overdraft Facility 4 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with HOSL for
obtaining information through letter and email dated January 5,
2024 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 HOSL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on HOSL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
HOSL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Based in Delhi, HOSL is primarily into trading of edible oil, de
oiled cakes and other agricultural commodities and is managed by Mr
Laxmi Chand Aggarwal, Mr Sanjeev Aggarwal, and Mr Rajesh Aggarwal.
Previously, HOSL involved in the production of rice bran oil and
de-oiled cake (DOC) and was taken over by the current promoters in
1994.
JASHANK IMPEX: CRISIL Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Jashank Impex
Private Limited (JIPL) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with JIPL for
obtaining information through letter and email dated January 5,
2024 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 JIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on JIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
JIPL continues to be 'CRISIL D Issuer Not Cooperating'.
Incorporated in 2011, JIPL, promoted by Mr Anil Gupta and Nirmal
Desai, manufactures and exports readymade garments for men and
women. The manufacturing facilities are at Udhna (Gujarat) and
Ulhasnagar (Maharashtra)'they have cutting, stitching, rolling and
embellishments machines.
JYOTI RENEWABLE: ICRA Keeps B+ Debt Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has kept the long-term rating of Sri Jyoti Renewable Energy
Pvt. Ltd. (SJREPL) in the 'Issuer Not Cooperating' category. The
rating is denoted as [ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 37.17 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long Term- 10.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with SJREPL, ICRA has been trying to seek information from the
entity so as to monitor its performance. Further, ICRA has been
sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Sri Jyoti Renewable Energy Private Limited (SJREPL), incorporated
in 2008, operates a 9.5 MW biomass-based power plant. The power
plant is located in the Bhiwani District of Haryana. The power
generated from the plant is evacuated to the 132 kV sub-stations,
which is 2 km away from the project site. The power plant commenced
operations from April 2014. The entire power
generated from the 9.5 MW power plant is sold to the Haryana Power
Purchase Centre (HPPC), which is purchasing on behalf of state
distribution companies (discoms) such as the Uttar Haryana Bijli
Vitran Nigam and the Dakshin Haryana Bijli Vitran Nigam. The
company has a 20- year Power Purchase Agreement (PPA) with HPPC.
The applicable tariff would be decided and amended by the Haryana
Electricity Regulatory Commission (HERC) from time to time; and the
current tariff is INR7.92 per
unit for FY2018.
KSK ENERGY: CARE Keeps D Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of KSK Energy
Limited (KEL) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 195.00 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 9,
2022, placed the rating(s) of KEL under the 'issuer
non-cooperating' category as KEL 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. KEL
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).
The KSK group has been promoted by Mr. Sethuraman Kishore and Mr.
K. A. Sastry and it is involved in consulting and developing power
projects since 1998. KSK Power Venture Plc (KSKPV), incorporated in
Isle of Man, is the holding company of KSK Group and is listed in
the London Stock Exchange (LSE). KEL, Mauritius, incorporated in
2005, is a wholly-owned subsidiary of KSKPV.
KEL, through its two subsidiaries KSK Energy Company Private
Limited (KECPL) and KSK Energy Ventures Limited (KEVL), is engaged
in development of various infrastructure (power and non-power)
projects. KECPL via its separate Special Purpose Vehicles (SPVs)
provides services like coal transportation, water supply and other
infrastructure activities to the power plants, while KEVL's core
business is power generation. KEL also undertook development of 250
MW solar project under different SPVs of KSK group (125 MW in Tamil
Nadu and 125 MW in Rajasthan).
KSK WATER: CARE Keeps D Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of KSK Water
Infrastructures Private Limited (KWIPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Ban k 636.73 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 9,
2022, placed the rating(s) of KWIPL under the 'issuer
non-cooperating' category as KWIPL 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. KWIPL 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).
KSK Water Infrastructures Private Limited (KWIPL) is a Special
Purpose Vehicle (SPV) promoted by KSK group to supply water to its
3600 MW (600 MW X 6 units) under construction thermal power plant;
KSK Mahanadi Power Company Limited (KMPCL) at District Janjgir
Champa in the State of Chhattisgarh. KWIPL is setting up 3600 MW (6
x 600 MW) domestic coal-based power project at Nariyara village,
Janjgir-Champa District of Chhattisgarh. There are three separate
SPV companies for water transportation (under KWIPL), mining of
coal and rail transportation infrastructure to support the
operations of KMPCL. There is proposal to merge the three SPVs with
KMPCL and the same is under process.
LOTUS OVERSEAS: ICRA Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has kept the Long-Term of Lotus Overseas in the 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]B+ (Stable);
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 7.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 1.15 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Lotus Overseas, ICRA has been trying to seek information from
the entity so as to monitor its performance. Further, ICRA has been
sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Established in May 2017, Lotus Overseas (LO) is a partnership firm
promoted and managed by Mr. Manish Pipaliya and Mr. Chhagan
Pipaliya. The firm is involved in processing and trading in
agro-commodities such as groundnuts, sesame and cumin. The firm's
commercial operations commenced from October 2017. Its
manufacturing facility is located at Junagadh in Gujarat. The
promoters have experience of more than a decade in the
agro-commodity sector.
MANGE RAM: CARE Keeps B+ Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Mange Ram
Enterprises Private Limited (MREPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 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 January 16,
2023, placed the rating(s) of MREPL under the 'issuer
non-cooperating' category as MREPL 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. MREPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated December 2, 2023, December 12,
2023, December 22, 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).
Delhi based Mange Ram Enterprises Private Limited (MREPL) (CIN No.
U51909DL2007PTC167336) was incorporated in August, 2007 and started
its commercial operations from August, 2008. The company is
currently managed by Mr. Pushpinder Rawat & Mrs. Renuka Rawat.
MREPL is an authorized distributor of Hyundai Motor India Limited
(HMIL) vehicles. The company operates through its 3S (Sales, Spares
and Services) facility and is engaged in the sale of passenger
cars, servicing of vehicles and sale of its spare parts. The
company has three showrooms located in Ghaziabad, Vaishali &
Baraut. The company has two associate concerns namely; "M.R.
Preview" and "M.R. Homes" engaged in real estate business.
MAURIA UDYOG: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Mauria
Udyog Limited (MUL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 55.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 240.00 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 13,
2022, placed the rating(s) of MUL under the 'issuer
non-cooperating' category as MUL 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. MUL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 29, 2023, November 8, 2023, November 18,
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).
Mauria Udyog Limited (MUL) [ISIN: INE150D01027] was incorporated in
1980 by the Sureka family comprising Mr V K Sureka, Mr N K Sureka
and Mr A K Sureka. The operations of the company are managed by Mr
N K Sureka (Managing Director). MUL is the flagship company of the
Mauria group. The group is involved in diverse business activities
including manufacturing of cylinders, valves, regulators, terry
towels, trading of commodities, NBFC, etc. MUL is engaged in the
manufacturing of cylinders, valves and regulators used for filling
Liquefied Petroleum Gas (LPG) and other gases such as ammonia and
refrigerants. MUL also manufactures 100% cotton terry towels at its
facility located in Faridabad. The terry towels are sold under the
brand name "Eurospa" and are sold domestically as well as exported
to countries like Ukraine, France, etc. MUL is also engaged in
trading and manufacturing of agro-commodities such as soybean meal
& cake and domestic trading of metals like steel, brass, copper and
ferrous scrap.
MEDIMATTER HEALTH: Ind-Ra Affirms B Loan Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Medimatter Health
Management Private Limited's (MHMPL) non- convertible debentures
(NCDs) as follows:
-- INR530.00 mil. NCDs ISIN INE214M08035 issued on May 20, 2011
coupon rate 0.01% due on May 20, 2024 affirmed with IND
B/Stable rating.
ANALYTICAL APPROACH: Ind-Ra continues to take a standalone view of
MHMPL to arrive at the ratings.
Key Rating Drivers
Limited Source of Income: MHMPL provides consultancy services in
the healthcare segment to third-parties for fixed fees on a
contract basis and has only one customer. The scale of operations
is small with its revenue remaining stable at INR0.90 million in
FY23 (FY22: INR1.20 million). Furthermore, MHMPL started receiving
dividend income FY22 onwards (FY23: INR36.36 million; FY22:
INR48.10 million) from its associate company, Medi Assist
Healthcare Services Limited (MAHS). However, the payment of
dividend depends on the profits generated and MAHS's dividend
policy.
Liquidity Indicator - Stretched: MHMPL had INR89.47 million of cash
and cash equivalents at 1HFYE24 (FYE23: INR62.01 million). The
proceeds received from its offer for sale (OFS) is being used to
pay the debenture holder for redemption of NCD along with a special
interest by FYE24. Also, the total market value of MHMPL's
outstanding investments in MAHS stood at around INR3,310 million as
of February 20, 2024, providing a strong financial flexibility.
Although MHMPL does not report any substantial operational revenue,
the interest servicing on NCDs was supported by the internal
accruals and dividend income from MAHS in the past.
Successful Completion of MAHS's Public Issue: MAHS concluded its
initial public offering in January 2024 with total OFS of 28.0
million equity shares at an allocation price of INR418 per share.
MHMPL, as a participating shareholder in the OFS, received proceeds
of INR5,210 million for its 12.50 million equity shares. However,
after adjusting the necessary expenses for the public issue and
tax, it stood at INR4,170.7 million. The company has utilized the
proceeds for the payment of special interest worth INR2,769 million
on February 12, 2024. The remaining funds will be utilized to
paying the outstanding NCD payments of INR530 million by FYE24.
MHMPL continues to hold around 9.83% stake in MAHS, which provides
a significant financial flexibility to the company after MAHS's
listing.
Strong Credit Profile of MAHS: MAHS is a healthtech and
insurancetech company while its wholly owned subsidiaries, such as
Medi Assist Insurance TPA Private Limited (MAITPL), Medvantage
Insurance TPA Private Limited and Raksha Health Insurance TPA
Private Limited, are mainly engaged in third-party administration
(TPA) services including claim administration and cashless
hospitalization at pre-negotiated tariffs. MAHS also facilitates
other healthcare and ancillary services such as call center
services, customer relations and contract management services,
billing services and claim processing services through the company
and its subsidiaries. The Medi Assist Group has a strong network of
more than 18,754 hospitals, catering to a number of clients across
the country.
In FY23, MAHS's consolidated revenue increased to INR5,049 million
(FY22: INR3,938 million) with an EBITDA margin of 23.6% (23.2%).
MAHS's working capital cycle reduced to 57 days in FY23 (FY22:
about 75 days), mainly due to the improvement in the receivable
days to 92 in FY23 (FY22: 110 days). MAHS had INR743.51 million of
cash and cash equivalents (liquid investments) at end-1HFY24
(FYE23: INR1584.68 million). The company does not have any
fund-based limits and MAITPL only utilizes the non-fund-based
limits for providing bank guarantees to insurance companies. In the
event of any financial distress, MAHS, having a stronger liquidity
profile, is likely to support MHMPL financially to meet the
latter's debt repayments.
Rating Sensitivities
Positive: A significant improvement in the scale of operations and
the profitability, leading to an improvement in the liquidity
position, all on a sustained basis, will be positive for the
ratings.
Negative: A decline in the scale of operations and/or unrelated
diversion of funds, leading to deterioration in the liquidity
position will be negative for the ratings.
Company Profile
MHMPL, formerly known as Ayurshaili Arogya Chikitsa Private
Limited, was incorporated on February 9, 2009 and promoted by Dr.
Vikram Jit Singh Chhatwal. The company provides healthcare
consultancy services to third parties for fixed fees on a contract
basis. The company has around 9.83% holding in MAHS.
NEO POWER: Ind-Ra Corrects January 23, 2024 Rating Release
----------------------------------------------------------
India Ratings and Research (Ind-Ra) rectifies Neo Power Electronics
and Projects Private Limited's (NPEPPL) rating published on January
23, 2024 to redraft the liquidity section for clarity.
The amended version is as follows:
India Ratings and Research (Ind-Ra) has rated Neo Power Electronics
and Projects Private Limited's (NPEPPL) bank facilities as
follows:
-- INR40.00 mil. Fund-based limit assigned with IND B+/Stable/IND
A4 rating; and
-- INR260.00 mil. Non-fund-based limit assigned with IND A4
rating.
ANALYTICAL APPROACH: Ind-Ra has assessed the company on a
standalone basis.
Key Rating Drivers
The ratings reflect NPEPPL's small scale of operations as indicated
by revenue of INR634.48 million in FY23 (FY22: INR142.41 million).
The revenue improved in FY23, due to the receipt and execution of
new orders. Till 7MFY24, NPEPPL booked revenue of INR629.60 million
and had an order book of INR825.26 million as of December 2023,
which is to be fully executed by FY25. Ind-Ra thus expects the
revenue to improve in FY24.
Moreover, the entity's EBITDA margins vary depend upon the nature
of orders in hand and unhedged foreign currency exposure. The
margins improved to a healthy level of 20.39% in FY23 (FY22: 5.90%)
with a return on capital employed of 39.05% (0.12%), due to the
receipt and execution of high-margin orders. Ind-Ra however expects
the EBITDA margin to slightly decline in FY24 due to the execution
of lower margin orders.
The ratings also reflect NPEPPL's modest credit metrics, as
reflected by an interest coverage ratio (operating EBITDA/gross
interest expenses) of 10.43x in FY23 (FY22: 2.24x) and the net
leverage (total adjusted net debt/operating EBITDAR) of 0.46x
(4.60x). The ratios improved in FY23 due to higher absolute EBITDA
of INR129.40 million (INR8.40 million). Ind-Ra expects the credit
metrics to remain at similar levels in FY24 due to the expected
stable absolute EBITDA. This is because the impact of the expected
improvement in revenue on EBITDA will be offset by the execution of
lower margin orders.
Liquidity Indicator - Poor: NPEPPL's fund-based facility was
overutilized for 51 consecutive days over July 2023-September 2023
due to the late payment received from its counterparty with the
average maximum utilization of the fund-based limits of 74.42% and
non-fund-based limits of 75.19% during the 12 months ended November
2023. The cash flow from operations remained negative at INR31.29
million in FY23 (FY22: negative INR43.92 million), due continued
high working capital of INR376.53 million (INR144.41 million).
Furthermore, the free cash flow remained negative at INR31.30
million in FY23 (FY22: negative INR47.93 million). The net working
capital cycle remained elongated despite improving to 332 days in
FY23 (FY22: 459 days) mainly due to increased creditor days of 317
(8). The cash and cash equivalents stood at INR3.14 million at
FYE23 (FYE22: INR0.07 million). Furthermore, NPEPPL does not have
any capital market exposure and relies on banks and financial
institutions to meet its funding requirements.
However, the ratings are supported by the company's promoters'
nearly 40 years of experience in manufacturing submarine batteries.
This has facilitated the company to establish strong relationships
with customers as well as suppliers.
Rating Sensitivities
Negative: A substantial decrease in the scale of operations or
operating profitability, or deterioration in the overall credit or
the liquidity profile, on a sustained basis, could lead to a
negative rating action.
Positive: An improvement in scale of operations, achievement of
stable operating profitability and maintaining the credit metrics
in the medium term could lead to a positive rating action.
Company Profile
Incorporated in 1975 as a proprietorship firm, NPEPPL was converted
to a private limited company in 1988. It is engaged in the
manufacturing, installation and maintenance of electrical,
electronics, instrumentation, automation equipment and projects for
defense establishments, tele-communication companies and related
Industries. The promoters are Baburao S Wanelkar and family. Their
registered office is in Mumbai and their manufacturing units are
located in Maharashtra.
ORION EDUTECH: CRISIL Lowers Rating on INR10cr Cash Loan to D
-------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the bank facilities of
Orion Edutech Private Limited (OEPL) to 'CRISIL D' from 'CRISIL
B/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL D (Downgraded from
'CRISIL B/Stable)
The rating reflects delays in servicing debt obligation on account
weak operating efficiency and weak financial risk profile. These
weaknesses are partially offset by its established track record of
operations and extensive experience of management.
Analytical Approach
Unsecured loans of INR0.61 crore as on March 31, 2022 has been
treated as neither debt nor equity as these loans are
interest-free.
Key Rating Drivers & Detailed Description
Weaknesses:
* Delays in servicing debt obligation: There have been
irregularities in debt servicing by OEPL on its repayment
obligations and utilization of fund-based limits. The track record
of timely servicing of debt will remain key rating sensitive
factor.
* Weak operating efficiency: Delays in ramp up of operations due to
limited funding to undertake Government funded skill development
programs, leading to lower than expected improvement in scale of
operations yielding low operating margin even in fiscal 2023 at
-7.9% against -2.6% in fiscal 2022. Moreover, RoCE was modest at
-28.9% as on March 31, 2023 (14.7% as on March 31, 2022). Going
forward, with management's focus on limiting revenue generation to
skill development & training, improvement in profitability is a key
rating sensitivity factor.
* Weak financial risk profile: Company's financial risk profile is
weak indicated by cash loss of INR11.82 crore in fiscal 2023 and
INR0.90 crore in fiscal 2022 resulting in complete erosion of
networth and modest debt protection metrices indicating inadequacy
to meet interest obligations. Going forward, steady accretion to
reserves is critical for improvement in financial risk profile.
Strengths:
* Established track record of operations and extensive experience
of management: The company has an established track record of 15
years in providing skill development & training and staffing &
recruitment. Further, the directors have been involved in OEPLs
management since 2007, enabling them to develop an adequate
understanding of the area of operations. Directors' experience will
continue to support the business risk profile over the medium
term.
Liquidity: Poor
Liquidity is poor as reflected in irregularities in debt servicing
by the OEPL.
Rating Sensitivity factors
Upward factors:
* Timely repayment of debt obligations continuously for atleast 90
days
* Significant improvement in profitability, leading to net cash
accruals to repayment obligation of more than 1 time.
* Improvement in financial risk profile
Incorporated in 2007, OEPL is engaged in providing skill
development training to students for various sectors such as IT,
ITes, BFSI, retail, apparel, beauty, hospitality, healthcare,
agriculture and construction. The company also provides training
under corporate social responsibility (CSR) mandate of corporates.
The company has 115 centers in India, 4 centers in Africa and one
center in Bangladesh. The company is owned and managed by Mr.
Sanjeev Kothari and Mr. Manish Agarwal.
PEC LIMITED: Ind-Ra Keeps D Rating in NonCooperating
----------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained PEC Limited's
instrument(s) rating in the non-cooperating category. The issuer
did not participate in the surveillance exercise, despite
continuous requests and follow-ups by the agency through emails and
phone calls. Therefore, investors and other users are advised to
take appropriate caution while using the rating. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The detailed rating actions are:
-- INR29.750 bil. Fund Based Working Capital Limit (Long Term/
Short Term) maintained in non-cooperating category with IND D
(ISSUER NOT COOPERATING) rating; and
-- INR4.570 bil. Non-Fund Based Working Capital Limit (Short
Term) maintained in non-cooperating category with IND D
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Incorporated in 1971, PEC is a public sector undertaking under the
Ministry of Commerce and Industry, Department of Commerce, the
government of India. The company's primary business interests are
exports, imports, deemed exports, third-country trading of
agro-commodities, industrial raw materials, and bullion, and
arranging financing, logistics, project exports and management.
PELLET-ENERGY SYSTEMS: CARE Keeps D Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of
PelleT-Energy Systems Private Limited (PSPL) continue to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 28.50 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 21,
2022, placed the rating(s) of PSPL under the 'issuer
non-cooperating' category as PSPL 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. PSPL
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).
Pellet-Energy Systems Private Limited (PSPL) currently being
managed by Mr. Bharat Sharma and Ms. Shruti Sharma was initially
incorporated as Luxury Woodplus Private Limited in 2010. The name
changed to its present status in October 2011. PES is engaged in
manufacturing of biomass pellets at its manufacturing unit located
in Roorkee, Uttarakhand.
SARA SUOLE: Ind-Ra Keeps C Bank Loan Rating in NonCooperating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Sara Suole
Private Limited's bank loan ratings in the non-cooperating category
and has simultaneously withdrawn them.
The detailed rating actions are:
-- INR1.180 bil. Fund-based working capital limit# maintained in
non-cooperating category and withdrawn; and
-- INR249.2 mil. Term loan* maintained in non-cooperating
category and withdrawn.
Note: ISSUER NOT COOPERATING: The issuer did not cooperate, based
on the best available information
#Maintained at 'IND C (ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT
COOPERATING)' before being withdrawn
*Maintained at 'IND C (ISSUER NOT COOPERATING) before being
withdrawn
Key Rating Drivers
The ratings have been maintained in the non-cooperating category
before being withdrawn because the issuer did not participate in
the rating exercise despite repeated requests by the agency, and
has not provided information about interim financials, sanctioned
bank facilities and utilization, business plans and projections for
next three years, information on corporate governance, and
management certificate. This is in accordance with Ind-Ra's policy
of 'Guidelines on What Constitutes Non-cooperation'.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no-objection certificate from the lender and
withdrawal request from the issuer. This is consistent with
Ind-Ra's Policy on Withdrawal of Ratings. Ind-Ra will no longer
provide analytical and rating coverage for the company.
Company Profile
Sara Suole was incorporated on April 26, 2001 as a private limited
company to manufacture leather footwear soles, uppers and shoes.
The company has an annual manufacturing capacity of more than 3
million pairs of shoes and 3.6 million pair of soles. It exports to
over 20 countries worldwide.
SHEETAL AGRO: CARE Keeps D Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Sheetal
Agro Food Park Private Limited (SAFPPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.00 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 26,
2022, placed the rating(s) of SAFPPL under the 'issuer
non-cooperating' category as SAFPPL 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. SAFPPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated November 11, 2023, November
21, 2023, December 1, 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).
Kanpur (U.P) based Sheetal Agro Food Park Private Limited was
incorporated in January, 2010 and is currently being managed by Mr.
Mehboob Alam and Mr. Masroor Alam. The company is engaged in
renting of its cold storage facility for potatoes to the local
farmers in Kanpur, Uttar Pradesh.
SRS HEALTHCARE: ICRA Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
ICRA has kept the Long-term and Short-term ratings for the bank
facilities of SRS Healthcare and Research Centre Limited in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term/ 115.00 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues
Unallocated to remain under 'Issuer Not
Cooperating' Category
As part of its process and in accordance with its rating agreement
with SRS Healthcare and Research Centre Limited, ICRA has been
trying to seek information from the entity so as to monitor its
performance. Further, ICRA has been sending repeated reminders to
the entity for payment of surveillance fee that became due. Despite
multiple requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Incorporated in May 2013, SRS Healthcare and Research Centre
Limited is a part of Faridabad-based SRS Group. Approximately 85%
stake in SRS Healthcare is owned by BTL Holding Company Limited,
which is the holding company of SRS Limited. SRS Healthcare was set
up with the objective of venturing into hospitals business. For
this purpose, the Company entered into an operations and management
agreement (OMA) with a charitable trust - Bharadwaj Welfare Trust
(BWT) – for a hospital in Sector 16A Faridabad (Haryana).
Thereafter, it commenced a major renovation of the hospital while
also expanding its bed capacity to 285 beds from 210 beds earlier.
SUDHIR AGRO: ICRA Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings of Sudhir Agro
Oils Private Limited in the 'Issuer Not Cooperating' category. The
ratings are denoted as "[ICRA]D; ISSUER NOT COOPERATING/[ICRA]D;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 4.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short-term 16.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Sudhir Agro Oils Private Limited, ICRA has been trying to seek
information from the entity so as to monitor its performance
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Incorporated in 1993, SAOPL is engaged in the trading of edible
oils. It trades primarily in Crude Palm Oil, Mustard Oil, Cotton
Seed Oil, Sunflower Oil and Soya Oil. The company does not have any
warehousing facility for storage of traded products. The promoter
Mr. Prem Kumar's family has been involved in the edible oil trading
business for three generations.
SURAT WOVENSACKS: ICRA Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------------
ICRA has kept the Long-Term of Surat Wovensacks Industries LLP
(SWIL) in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]B+ (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 8.60 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with SWIL, ICRA has been trying to seek information from the entity
so as to monitor its performance Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Established in October 2015, Surat Wovensacks Industries LLP
(SWIL), manufactures high density poly ethylene and poly propylene
(HDPE & PP) woven fabrics (laminated and non-laminated). The firm
started its commercial operations in August 2016 from its
manufacturing facility at Magrol, in Surat, with an installed
capacity to manufacture 3960 Metric Tonnes (MT).
TABLEZ RETAIL: CARE Reaffirms D Rating on INR17.25cr LT Loan
------------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
Tablez Retail Private Limited (TR), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 17.25 CARE D; Reaffirmed
Facilities
Rationale and key rating drivers
The rating assigned to the bank facilities of Tablez Retail Private
Limited (TR) continues to factor in the delays in debt servicing by
company. This is due to continuing operating losses being incurred
by the company and delay in receipt of funding support from parent
in timely manner.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Delay free track record of operations for a continuous period of
more than three months and improvement in liquidity position.
Negative factors: Not Applicable
Analytical approach: Standalone
Outlook: Not Applicable
Detailed description of the key rating drivers:
Key weaknesses
* Continuing delays in debt servicing: Company have shared the bank
statements from February 2023 to January 2024 in which CARE Ratings
has observed the continuation of delays in interest and term loan
EMI payments in almost every month. Moreover, as per banker
interaction the delays are still continuing in servicing the
interest and debt repayments obligations.
Liquidity: Poor
Liquidity of the company was largely driven from its resourceful
promoters. The operations of the company were severely impacted
during the first and second wave of Covid-19 pandemic and the
liquidity from the core operations is poor resulting in delays in
debt repayments.
Kochi (Kerala) based, Tablez Retail Private Limited was
incorporated in 2016 and fully owned subsidiary of Tablez Food
Company Private Limited (TFC). TFC is promoted Mr. Adeeb Ahamed and
Ms. Shafeena Yusuffali.
WALLED CITY: ICRA Withdraws B+ Rating on INR34.23cr Loans
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ICRA has withdrawn the ratings assigned to the bank facilities of
Walled City Hotels Private Limited at the request of the company
and based on the No Objection Mail/Closure Certificate received
from the bankers. However, ICRA does not have information to
suggest that the credit risk has changed since the time the rating
was last reviewed. The Key Rating Drivers, Liquidity Position,
Rating Sensitivities, have not been captured as the rated
instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 34.23 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Withdrawn
Term Loan
Long Term- 3.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Withdrawn
Overdraft
WCHPL was incorporated in 2007, and its operations started in 2009.
The company has two hotels–RAAS Jodhpur at Jodhpur and RAAS
Devigarh at Udaipur. It also has a luxury tent in Pali district,
known as RAAS Chhatra Sagar. RAAS Jodhpur is built on an
18thcentury haveli at the base of the Mehrangarh Fort, which Mr.
Dhananjaya Singh (promoter of the company) bought and converted
into a hotel. It has a total of 40rooms built across an area of
6,000 square metres. The company also acquired the 39-room Devigarh
Hotel at Udaipur, which is a heritage property with a legacy of 15
years. The luxury tent has 16 tents and its operations commenced
from December 2019. Further, the company has started operational
management and branding of the Rajmahal Palace hotel, Jaipur from
April 2022.
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M A L A Y S I A
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PHARMANIAGA BHD: Files PN17 Regularisation Plan, To Raise MYR655MM
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Free Malaysia Today reports that Pharmaniaga Bhd submitted its
regularisation plan to Bursa Malaysia on Feb. 23 as it seeks to
exit the dreaded Practice Note 17 (PN17) classification that it
fell under a year ago.
According to FMT, the plan to revitalise one of Malaysia's largest
integrated pharmaceutical groups involves fund raising via a
renounceable rights issue of new ordinary shares of up to MYR354.6
million and private placement of up to MYR300 million.
In a Bursa Malaysia filing on Feb. 23, it said the plan also
entails a capital reduction of approximately MYR180 million issued
share capital to reduce its accumulated losses.
The deadline to submit its regularisation plan is the end of this
month, FMT notes.
FMT says a massive impairment caused by its failure to offload
MYR552.3 million worth of Covid-19 vaccines sent Pharmaniaga
tumbling into PN17 status on Feb. 27, 2023.
The impairment led to its largest ever quarterly net loss of
MYR664.39 million for the fourth quarter ended Dec. 31, 2022 (Q4
FY2022) from a net profit of MYR85.47 million the year before, FMT
discloses.
FMT adds Pharmaniaga stated that its substantial shareholders, the
Armed Forces Fund Board (LTAT) and Boustead Holdings Bhd (BHB), are
supporting this "strategic initiative".
"LTAT and BHB have committed to ensure their combined entitlement
to the rights issue, totalling MYR190 million, will be fully taken
up," it said.
Pharmaniaga is a subsidiary of BHB, which in turn is wholly owned
by LTAT.
It said the regularisation plan outlines a holistic approach to
increase the equity of the group and minimise its accumulated
losses, FMT relays.
"The rights issue offers the existing shareholders the opportunity
to increase their participation in future upsides of Pharmaniaga,
alongside a private placement aimed at drawing potential strategic
investors to contribute to the group's value enhancement and
growth," it added.
Pending Bursa Malaysia's approval, the plan is projected to be
fully implemented in the fourth quarter of the fiscal year ending
Dec. 31, 2024, said Pharmaniaga.
About Pharmaniaga
Pharmaniaga Berhad is an investment holding company. The Company is
principally engaged in the research and development, manufacturing
of generic drugs and medical devices, logistics and distribution,
sales, and marketing, as well as community pharmacy.
It was reported on Feb. 28, 2023, that Pharmaniaga had been
classified as an affected listed issuer under PN17 of the Main
Market Listing Requirements of Bursa Malaysia. The pharmaceutical
company said it had triggered the PN17 criteria pursuant to its
audited consolidated financial statements for the period ended Dec.
31, 2022.
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N E W Z E A L A N D
=====================
DIGITAL ASSET: SFO Opens Probe Into Failed Cryptocurrency Platform
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Radio New Zealand reports that the Serious Fraud Office (SFO) has
started an investigation into the multimillion-dollar collapse of a
local cryptocurrency trading platform.
Digital Asset Exchange, which traded under the name Dasset, was put
into liquidation in August last year with NZD6.3 million in
investments unaccounted for.
According to RNZ, the SFO called for anyone with relevant
information to get in touch, but declined any further comment.
A report by liquidators from accounting firm Grant Thornton last
December said NZD600,000 in assets, including cryptocurrency, had
been secured, but they had been unable to find the unaccounted
funds of around 5,000 investors, RNZ discloses.
"The recorded assets held by the company were less than 10 percent
of the reported user and creditor balances at the date of
liquidation. Accordingly, it is expected that unless further
recoveries can be identified, any funds available to be repaid to
users or creditors will be minimal," the liquidators' report said.
RNZ relates that the report said liquidators had been in touch with
a third party offshore exchange to try to track down investments,
but their efforts had been "hindered" by not being able to contact
Dasset's chief executive and major shareholder, Steve Macaskill.
Digital Asset Exchange Limited was incorporated in April 2017 and
operated as a New Zealand based digital asset exchange, trading
under the name "Dasset". The Company offered users the ability to
buy and sell over 90 different digital assets with New Zealand
Dollars. At the date of liquidation, it is estimated that the
Company had over 5,000 registered users.
GM SCIENTIFIC: Court to Hear Wind-Up Petition on March 15
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A petition to wind up the operations of GM Scientific International
Limited will be heard before the High Court at Auckland on March
15, 2024, at 10:00 a.m.
Trisan New Zealand Limited filed the petition against the company
on Dec. 19, 2023.
The Petitioner's solicitor is:
Chen Jiang
Tompkins Wake
17/88 Shortland Street
Auckland Central
MACBUR HOLDINGS: Creditors' Proofs of Debt Due on March 28
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Creditors of Macbur Holdings No 5 Limited are required to file
their proofs of debt by March 28, 2024, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Feb. 21, 2024.
The company's liquidator is:
Craig Young
PO Box 87340
Auckland
MGK HOMES: Creditors' Proofs of Debt Due on March 25
----------------------------------------------------
Creditors of MGK Homes Limited are required to file their proofs of
debt by March 25, 2024, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Feb. 26, 2024.
The company's liquidators are:
Steven Khov
Kieran Jones
Khov Jones Limited
PO Box 302261
North Harbour
Auckland 0751
R&R RELIEF: Court to Hear Wind-Up Petition on March 8
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A petition to wind up the operations of R&R Relief Drivers Limited
will be heard before the High Court at Auckland on March 8, 2024,
at 10:45 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Dec. 8, 2023.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
WAIPOPO LIMITED: PwC Canterbury Appointed as Receivers and Managers
-------------------------------------------------------------------
Malcolm Hollis and Stephen White of PwC Canterbury on Feb. 27,
2024, were appointed as receivers and managers of Waipopo Limited
Partnership.
The receivers and managers may be reached at:
PwC Canterbury
PO Box 13244
Christchurch 8141
===============
P A K I S T A N
===============
PAKISTAN: China Rolls Over US$2 Billion Loan
--------------------------------------------
Reuters reports that China has rolled over a $2 billion loan to
Pakistan, caretaker finance minister Shamshad Akhtar confirmed in a
response to Reuters on Feb. 29.
Reuters relates that the $2 billion loan was due in March and has
been extended for one year, Geo News which first reported the news
said, citing sources in the Pakistan finance ministry. Beijing had
communicated the decision to Islamabad, it added.
Pakistan's cash-strapped economy is struggling to stabilise from a
financial crisis and secured a $3 billion standby arrangement from
the International Monetary Fund last summer, according to Reuters.
Pakistan's vulnerable external position means that securing
financing from multilateral and bilateral partners will be one of
the most urgent issues facing the next government, ratings agency
Fitch said last week.
Pakistan is a country located in South Asia. It has a coastline
along the Arabia Sea and the Gulf of Oman and is bordered by
Afghanistan, China, India, and Iran. Pakistan's capital is
Islamabad.
As reported in the Troubled Company Reporter-Asia Pacific in
December 2023, Fitch Ratings has affirmed Pakistan's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'CCC'. Fitch
typically does not assign Outlooks to sovereigns with a rating of
'CCC+' or below.
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S I N G A P O R E
=================
BESPOKE DESIGN: Court Enters Wind-Up Order
------------------------------------------
The High Court of Singapore entered an order on Feb. 26, 2024, to
wind up the operations of Bespoke Design & Interiors Pte. Ltd.
United Overseas Bank Limited filed the petition against the company
on Jan. 4, 2024.
The company's liquidators are:
BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
E-TRAQ PTE: Court to Hear Wind-Up Petition on March 15
------------------------------------------------------
A petition to wind up the operations of E-Traq Pte Ltd will be
heard before the High Court of Singapore on March 15, 2024, at
10:00 a.m.
Luther LLP filed the petition against the company on Feb. 16,
2024.
The Petitioner's solicitors are:
I.N.C. Law LLC
4 Battery Road
#26-01, Bank of China Building
Singapore 049908
ECOSYS DISTRIBUTION: Court Enters Wind-Up Order
-----------------------------------------------
The High Court of Singapore entered an order on Feb. 26, 2024, to
wind up the operations of Ecosys Distribution Asia Pte. Ltd.
United Overseas Bank Limited filed the petition against the company
on Jan. 4, 2024.
The company's liquidators are:
BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
M.S.I.A. PTE: Court to Hear Wind-Up Petition on March 15
--------------------------------------------------------
A petition to wind up the operations of M.S.I.A. Pte Ltd will be
heard before the High Court of Singapore on March 15, 2024, at
10:00 a.m.
Luther LLP filed the petition against the company on Feb. 16,
2024.
The Petitioner's solicitors are:
I.N.C. Law LLC
4 Battery Road
#26-01, Bank of China Building
Singapore 049908
NW FOODS: Court to Hear Wind-Up Petition on March 15
----------------------------------------------------
A petition to wind up the operations of NW Foods Pte Ltd will be
heard before the High Court of Singapore on March 15, 2024, at
10:00 a.m.
Maybank Singapore Limited filed the petition against the company on
Feb. 23, 2024.
The Petitioner's solicitors are:
Adsan Law LLC
300 Beach Road
#26-00 The Concourse
Singapore 199555
=====================
S O U T H K O R E A
=====================
TERRAFORM LABS: SEC Goes After US$166MM 'Slush Fund' for Dentons
----------------------------------------------------------------
Reuters reports that the U.S. Securities & Exchange Commission has
argued that Terraform Labs should not be allowed to hire law firm
Dentons or pay litigation costs for employees during its
bankruptcy, taking aim at a $166 million retainer payment to
Terraform's lawyers.
Reuters relates that the SEC said that Terraform had sent $166
million to Dentons since the start of 2023, and that those
transfers may have been intended to avoid paying a future judgment
in the SEC's lawsuit accusing Terraform of defrauding its
investors.
The money has been "siphoned" into an "opaque slush fund for its
lawyers," to the detriment of the investors and creditors who will
seek to be repaid in Terraform's bankruptcy, the SEC said, Reuters
relays.
Terraform Labs, which filed for Chapter 11 protection in January,
has said that its bankruptcy will enable it to appeal a December
ruling that granted partial victory to the SEC in its securities
fraud case. A federal judge ruled that Terraform Labs and its
founder Do Kwon violated U.S. law by failing to register two
digital currencies whose collapse roiled cryptocurrency markets in
2022.
According to Reuters, the judge has not yet determined the amount
of damages that Terraform must pay, but Terraform Labs has said it
could exceed its assets.
After filing for bankruptcy, Terraform asked the bankruptcy court
for permission to hire Dentons as special litigation counsel, and
to pay $6.3 million in legal costs for employees and critical
outside partners who are facing litigation. About $3.25 million of
that amount will be used to pay employees' legal bills, according
to Terraform's court filings.
Reuters relates that Terraform also seeks to pay about $1.33
million to continue a UK lawsuit that aims to dig up evidence from
a crypto trading company that Terraform says will help its defense
of the SEC lawsuit.
The SEC said that none of those payments can be allowed without
more oversight from the bankruptcy court, arguing Terraform's
"staggering" retainer payment had served to undermine the
bankruptcy court's visibility into Terraform's spending, Reuters
relays.
Most of the retainer payments, totaling $122 million, were
transferred in the 90-day period before Terraform filed for
bankruptcy, according to the SEC. As a result, that money could
ultimately be clawed back to repay Terraform's other creditors,
creating a potentially disqualifying conflict of interest between
Terraform and Dentons, the regulator argued.
Dentons should not be allowed to represent Terraform, its employees
or vendors unless it returns $81 million that remains in the
retainer account and subjects its future fees to bankruptcy court
oversight, SEC, as cited by Reuters, argued.
U.S. Bankruptcy Judge Brendan Shannon is expected to hear arguments
on the dispute at a March 5 court hearing in Wilmington, Delaware,
Reuters notes.
About Terraform Labs
Terraform Labs Pte. Ltd. -- https://www.terra.money -- is a startup
that created Terra, a blockchain protocol and payment platform used
for algorithmic stablecoins. It was co-founded by Do Kwon and
Daniel Shin in 2018 in Seoul, South Korea.
Terraform Labs introduced its first cryptocurrency token, TerraUSD,
in 2019. Investment firms like Arrington Capital, Coinbase
Ventures, Galaxy Digital, and Lightspeed Venture Partners helped
Terraform Labs raise more than $200 million.
The collapse of the stablecoins TerraUSD (UST) and Luna in May 2022
caused the temporary suspension of the Terra network, wiping out
over $45 billion in market capitalization in a single week.
Both of Terra Form Labs' founders have encountered legal problems
as a result of the devaluation of the company's currency. In
September 2022, South Korean prosecutors filed a warrant for Do
Kwon's arrest. He was also added to Interpol's Red Notice list,
which urges other law enforcement to find and detain him.
Terraform Labs Pte. Ltd. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-10070) on Jan. 22,
2024. In the petition filed by Chris Amani, as chief executive
officer, the Debtor estimated assets and liabilities between $100
million and $500 million each.
The Debtor is represented by:
Zachary I Shapiro, Esq.
Richards, Layton & Finger, P.A.
1 Wallich Street
#37-01
Guoco Tower 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.
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