/raid1/www/Hosts/bankrupt/TCRAP_Public/240321.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, March 21, 2024, Vol. 27, No. 59
Headlines
A U S T R A L I A
AEON BUILT: First Creditors' Meeting Set for March 26
AGS COMMERCIAL: First Creditors' Meeting Set for March 26
CLOVER FOODS: Second Creditors' Meeting Set for March 25
GODFREYS GROUP: To Be Wound Up After No Buyer Found for Stores
INLINE MECHANICAL: Second Creditors' Meeting Set for March 25
MALKA GROUP: First Creditors' Meeting Set for March 25
NIQUE PTY: Faced Net Losses Since 2016, Documents Show
PEPPER SPARKZ 8: Fitch Assigns 'B(EXP)sf' Rating on Class F Notes
SAPPHIRE XXIX 2024-1: Fitch Assigns 'BB+(EXP)' Rating on E Notes
ZIP MASTER 2024-1: S&P Assigns Prelim. 'B(sf)' Rating on F Notes
C H I N A
COUNTRY GARDEN: Kingboard Offers Developer Debt Reprieve
GEMDALE CORP: Is on Track to Repay All Bonds This Quarter
I N D I A
APS STEELS: CRISIL Keeps D Debt Ratings in Not Cooperating
ARUN POLYMERS: CRISIL Keeps D Debt Ratings in Not Cooperating
AWATE ENGINEERING: Liquidation Process Case Summary
BECKHEM TRADING: Insolvency Resolution Process Case Summary
BHARAT MOTORS: CARE Lowers Rating on INR43.41cr LT Loan to D
C I FINLEASE: ICRA Withdraws B+ Rating on INR10cr LT Loan
COUNTRY CLUB: ICRA Keeps D Debt Ratings in Not Cooperating
EAGLE ELECTRONIC: Insolvency Resolution Process Case Summary
ECSTASY REALTY: CARE Keeps C Debt Ratings in Not Cooperating
ELECTRA ACCUMULATORS: CRISIL Keeps D Rating in Not Cooperating
FACTORY ONE: Voluntary Liquidation Process Case Summary
GO FIRST: Bidder Ups Bid Following Banks' Nudge, Say Sources
GRAM VAANI: Voluntary Liquidation Process Case Summary
GREENTECH MEGA: CARE Keeps D Debt Rating in Not Cooperating
GVMC PUBLIC: CARE Keeps B- Debt Rating in Not Cooperating Category
JASMINE BUILDMART: Insolvency Resolution Process Case Summary
KOPALLE PHARMA: CARE Keeps D Debt Ratings in Not Cooperating
KRANTIAGRANI DR: CARE Lowers Rating on INR100 LT Loan to B
LEO CREATIONS: Insolvency Resolution Process Case Summary
MAD STUDIOS: ICRA Keeps D Debt Ratings in Not Cooperating
MINI HOTELS: ICRA Keeps D Debt Ratings in Not Cooperating
OM THREADS: ICRA Keeps B+ Debt Ratings in Not Cooperating
PADMAJA FARMS: ICRA Keeps B+ Debt Rating in Not Cooperating
PROFESSIONAL EDUC: CRISIL Keeps D Debt Ratings in Not Cooperating
R.K. STEELS: ICRA Keeps B+ Debt Rating in Not Cooperating
REMEDY MEDICAL: ICRA Keeps B Debt Ratings in Not Cooperating
RENITE VITRIFIED: ICRA Keeps B+ Debt Ratings in Not Cooperating
SANDEEP RICE: ICRA Keeps B Debt Rating in Not Cooperating
SHRIVALLABH PITTIE: NCLT Admits Insolvency Plea Against Yarn Maker
SITARAM INDIA: ICRA Keeps B+ Debt Ratings in Not Cooperating
TIRUPATI AGRO: CARE Keeps B Debt Rating in Not Cooperating
VENKATA SAI: CARE Reaffirms B+ Rating on INR20cr LT Loan
VGP MARINE: Ind-Ra Moves BB+ Term Loan Rating to NonCooperating
VILLUPURAM DISTRICT: ICRA Keeps B+ Debt Rating in Not Cooperating
I N D O N E S I A
PAN BROTHERS: Fitch Cuts LT IDR to 'RD' on Missed Payment
N E W Z E A L A N D
CLEACO CLEAN: Waterstone Insolvency Appointed as Receivers
HUNTN TRADINGS: Grant Bruce Reynolds Appointed as Liquidator
KO AROHA: Creditors' Proofs of Debt Due on April 12
LAKELAND QUEEN: Paddle Boat Business Goes Into Liquidation
MCMLXX LIMITED: BDO Appointed as Receivers and Managers
SELAH HOMES: Creditors' Proofs of Debt Due on April 13
S I N G A P O R E
AWE CHINA: Creditors' Proofs of Debt Due on April 22
EVCO: Placed Under Insolvent Liquidation, Owes Almost SGD50MM
QINGJIAN REALTY: Commences Wind-Up Proceedings
RASAWULAN MARITIME: Commences Wind-Up Proceedings
TANK BUILT: Court to Hear Wind-Up Petition on April 5
WA SUPERAPP: Commences Wind-Up Proceedings
S O U T H K O R E A
SK INNOVATION: S&P Downgrades ICR to 'BB+', Outlook Stable
- - - - -
=================
A U S T R A L I A
=================
AEON BUILT: First Creditors' Meeting Set for March 26
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Aeon Built
Pty Ltd will be held on March 26, 2024 at 10:30 a.m. at Suite 2, 63
The Esplanade in Maroochydore.
Paul Eric Nogueira of Worrells was appointed as administrator of
the company on March 14, 2024.
AGS COMMERCIAL: First Creditors' Meeting Set for March 26
---------------------------------------------------------
A first meeting of the creditors in the proceedings of AGS
Commercial Pty Ltd will be held on March 26, 2024 at 2:00 p.m. via
virtual meeting.
Cameron Crichton and John Mclnerney of Grant Thornton were
appointed as administrators of the company on March 14, 2024.
CLOVER FOODS: Second Creditors' Meeting Set for March 25
--------------------------------------------------------
A second meeting of creditors in the proceedings of Clover Foods
Pty Ltd has been set for March 25, 2024 at 2:30 p.m. at the offices
of Chartered Accountants Australia and New Zealand at Level 18, 600
Bourke Street in Melbourne.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by March 22, 2024 at 3:00 p.m.
Ben Verney of Greyhouse Partners was appointed as administrator of
the company on Feb. 17, 2024.
GODFREYS GROUP: To Be Wound Up After No Buyer Found for Stores
--------------------------------------------------------------
SmartCompany reports that the Australian and New Zealand operations
of vacuum cleaner retailer Godfreys will be wound up, after
administrators didn't receive any viable offers to buy the business
as a going concern.
Administrators from PricewaterhouseCoopers were appointed to the
Godfreys group of companies at the end of January, with a
"challenging" retail environment taking a significant toll on the
93-year-old business, SmartCompany recalls.
At the time, PwC administrators Craig Crosbie, Robert Ditrich and
Daniel Walley announced plans to immediately close 54 of Godfreys'
141 stores within a fortnight, affecting the employment of 171
Australian and 22 New Zealand staff.
According to SmartCompany, PwC said on March 20 it received 55
expressions of interest and six indicative offers for the remaining
stores during the sale process, but these offers were either
withdrawn or were "not sufficient in securing the business'
longer-term future".
SmartCompany relates that the administrators said they now have no
alternative but to progressively wind-down the Godfreys operations
in both Australia and New Zealand.
Employees have been told that remaining stores will be closed in
phases from now until May 31, 2024, which will affect their jobs.
Additionally, 25 head office employees were made redundant on March
20, SmartCompany relays.
Stores will continue to trade on an interim basis while existing
stock is cleared.
SmartCompany says Godfreys franchisees were also told on March 20
that the franchisor will no longer be able to support them. These
stores will be permitted to trade until the end of March to sell
existing stock, or their operators will be able to return stock
that was sold to them during the administration process to receive
credits on any amounts they owe the business.
According to SmartCompany, administrator and PwC Australia partner
Craig Crosbie said winding up the business was "not the outcome
Godfreys had hoped for" after what he described as a "rigorous"
sale process.
"In the absence of any further bidders coming forward as
intermittent trading continues, the process of closing all
remaining stores will progress over the next eight weeks," he
added.
"We recognise this is a difficult time for staff, franchisees, and
other stakeholders, and we will continue to work closely with all
parties to ensure they are informed and supported over the coming
weeks."
About Godfreys
Established in 1931, Godfreys is one of the world's largest vacuum
retailers and one of Australia and New Zealand's leading suppliers
of specialty commercial floor care and associated cleaning
products. The business operates 141 stores and employs more than
600 staff across Australia and New Zealand, with an additional 28
stores run by franchisees. In New Zealand, there are 16 Company
operated and nine franchised stores.
On Jan. 30, 2024, Craig Crosbie, Robert Ditrich and Daniel Walley
of PricewaterhouseCoopers (PwC) Australia were appointed as
administrators of Godfreys Group Pty Ltd, Australian Vacuum Cleaner
Co. Pty. Ltd., Electrical Home-Aids Pty. Limited, Godfreys Finance
Company Pty Ltd, Godfreys Franchise Systems Pty. Limited, Hoover
Floorcare Asia Pacific Pty Ltd, International Cleaning Solutions
Group Pty Ltd, and International Cleaning Solutions Pty Limited.
Stephen White and John Fisk of PwC New Zealand have been appointed
as Voluntary Administrators of New Zealand Vacuum Cleaner Company
Limited.
During the Administration period, Godfreys will continue to trade
while the Administrators undertake an immediate operational
restructure and sale process, PwC said.
As a result of the restructure, it is anticipated that 54 Godfreys
stores will be closed within the next 14 days.
INLINE MECHANICAL: Second Creditors' Meeting Set for March 25
-------------------------------------------------------------
A second meeting of creditors in the proceedings of Inline
Mechanical Projects Pty Ltd has been set for March 25, 2024 at
11:30 a.m. at the offices of Mackay Goodwin, Level 12, 20 Bridge
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 22, 2024 at 5:00 p.m.
Grahame Ward and David Hurst of Mackay Goodwin were appointed as
administrators of the company on Feb. 19, 2024.
MALKA GROUP: First Creditors' Meeting Set for March 25
------------------------------------------------------
A first meeting of the creditors in the proceedings of The Malka
Group Pty. Ltd. will be held on March 25, 2024 at 2:00 p.m.
virtually via Zoom.
Ivan Glavas of Worrells was appointed as administrator of the
company on March 14, 2024.
NIQUE PTY: Faced Net Losses Since 2016, Documents Show
------------------------------------------------------
Ragtrader reports that Australian fashion label Nique has faced net
losses since FY2016, hitting a peak of AUD2.5 million in the 2019
financial year, which eventually culminated in the brand's collapse
last month.
This is according to documents obtained by Ragtrader, which reveal
that the company's estimated total liabilities were at AUD9.04
million - including non-current liabilities.
Documents indicate that Nique's total net losses were AUD6,838,528
between FY2019 to FY2023.
Ragtrader relates that the company's largest yearly expense was
salary payments, which were slashed from AUD2.01 million in 2019 to
AUD1.08 million in 2023. Rent made up the second-largest expense -
halved from AUD1.12 million to AUD555,586.05 in the same period.
Despite the heavy cost-cutting across the business over the last
few years, headwinds continued to ramp up - including international
freight costs and Australian Tax Office interest.
Other costly operating expenses included advertising and marketing
- at AUD143,796 in 2023 - and superannuation which crept up to
AUD111,000 in 2023, despite dropping to AUD89,000 in 2021 from a
AUD189,000 peak in 2019, Ragtrader discloses.
These overheads were matched by an ongoing revenue slump since 2019
- dropping from AUD5.5 million to AUD2.3 million in 2021, and
lifting to just AUD2.7 million in 2023.
Nique was averaging a AUD36,000 per month loss in the 4 months
before going into administration and had no cash at the bank on
appointment.
Due to a restructuring initiative in approximately 2022 and 2023,
the fashion brand closed its Balaclava store, alongside two other
stores in Melbourne CBD, according to Ragtrader.
During the period February 2022 to January 2024, the average
monthly combined cash loss from these stores on a direct cost and
direct expense basis was AUD23,000 loss per month. The store
closures did not result in the company achieving a positive trading
result.
From October 2023 to January 2024, its e-commerce site and Fitzroy
store recorded profits of AUD15,000 per month and AUD3,000 per
month respectively. Its Newtown store was break-even, and its
Paddington store was in the red at AUD6,000 per month, Ragtrader
relays.
These amounts were not sufficient to cover the company's
overheads.
Ragtrader adds that the administrator noted that whilst they have
reviewed the shared financial information, they cannot attest to
its accuracy.
Regarding total liabilities, Nique's largest owed funds include an
intercompany loan of AUD5.7 million from EPRO - a renewable energy
firm co-founded by Albert Lau who also held a director position at
Nique since 2017.
There is also a four-part loan from investment firm L Industries,
totalling AUD1.46 million. However, L Industries is claiming it is
owed AUD2,141,657.78 under the security agreement, covering 9
payments since October 2016.
Other major liabilities include AUD1.1 million in trade creditors,
AUD337,175.60 to the ATO, and a AUD120,000 Shopify loan, Ragtrader
discloses.
A second meeting has been called to take place on March 21, where a
decision will be made as to whether Nique will be handed back to
its directors, whether it executes a Deed of Company Arrangement,
or whether it is wound up, adds Ragtrader.
PEPPER SPARKZ 8: Fitch Assigns 'B(EXP)sf' Rating on Class F Notes
-----------------------------------------------------------------
Fitch Ratings has assigned expected ratings to Pepper SPARKZ Trust
No. 8's pass-through floating-rate notes. The notes are backed by a
pool of first-ranking Australian automotive and equipment lease and
loan receivables originated by Pepper Asset Finance Pty Limited, a
subsidiary of Pepper Money Limited (Pepper). The notes will be
issued by BNY Trust Company of Australia Limited as trustee for
Pepper SPARKZ Trust No.8.
Entity/Debt Rating
----------- ------
Pepper SPARKZ
Trust No.8
A1-a LT AAA(EXP)sf Expected Rating
A1-x LT AAA(EXP)sf Expected Rating
B LT AA(EXP)sf Expected Rating
C LT A(EXP)sf Expected Rating
D LT BBB(EXP)sf Expected Rating
E LT BB(EXP)sf Expected Rating
F LT B(EXP)sf Expected Rating
G LT NR(EXP)sf Expected Rating
TRANSACTION SUMMARY
The total collateral pool at the 31 December 2023 pool cut-off date
was AUD650 million and consisted of 15,576 receivables with a
weighted-average (WA) remaining maturity of 59.0 months and an
average contract balance of AUD41,731.
KEY RATING DRIVERS
Stress Commensurate with Ratings (Positive): Fitch has assigned
base-case default expectations and 'AAAsf' default multiples are as
follows:
Novated: 1.10% (7.75x)
Non-Novated Risk Tier A: 2.25% (6.0x)
Non-Novated Risk Tier B: 8.25% (4.25x)
Non-Novated Risk Tier C: 19.25% (3.00x)
The recovery base case is 35.0%, with a 'AAAsf' recovery haircut of
50.0% across all risk grades. The WA base-case default assumption
was 4.7% and the 'AAAsf' default multiple was 4.4x.
Portfolio performance is supported by Australia's continued
economic growth and tight labour market, despite interest rate
hikes in 2022-2023. GDP growth in the year to September 2023 was
2.1% and unemployment was 4.1% in January 2024. Fitch expects GDP
growth of 1.5% in 2024, with unemployment increasing to 4.2%. This
reflects the economic impact from China's property downturn and the
lagged effect of tighter monetary policy on consumption.
Excess Spread Limited by Commission Note Repayment (Negative): The
transaction includes a class A1-x note to fund the purchase-price
component related to the unamortised commission paid to introducers
for the origination of the receivables. The note will not be
collateralised, but will amortise in line with an amortisation
schedule. The note's repayment limits the availability of excess
spread to cover losses, as it ranks senior in the interest
waterfall; above the class B to F notes. However, the rated
subordinated notes still pass at their respective stress rating
levels.
Class A to F notes will receive principal repayments pro rata upon
satisfaction of the stepdown criteria. The percentage of credit
enhancement (CE) provided by the G note will increase as the A to F
notes amortise. Fitch's cash flow analysis incorporates the
transaction's structural features and tests each note's robustness
by stressing default and recovery rates, prepayments, interest-rate
movements and default timing.
Counterparty Risks Addressed (Neutral): Counterparty risk is
mitigated by documented structural mechanisms that ensure remedial
action takes place should the ratings of the swap providers or
transaction account bank fall below a certain level. The
transaction includes interest-rate swaps with a fixed schedule,
which allows for future over- or under-hedging, depending on the
level of prepayments and defaults. Fitch conducted additional
sensitivity analysis for these hedging scenarios.
Low Operational and Servicing Risk (Positive): All receivables were
originated by Pepper Asset Finance, which demonstrated adequate
capability as originator, underwriter and servicer. Pepper is not
rated by Fitch. Servicer disruption risk is mitigated by back-up
servicing arrangements. The nominated backup servicer is BNY Trust
Company of Australia Limited. Fitch undertook an operational and
file review and found that the operations of the originator and
servicer were comparable with those of other auto and equipment
lenders.
No Residual Value Risk (Positive): There is no residual value
exposure in this transaction. However, 44.5% of the portfolio by
loan value has balloon amounts payable at maturity.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Transaction performance may be affected by changes in market
conditions and the economic environment. Weakening asset
performance is strongly correlated with increasing levels of
delinquencies and defaults that could reduce CE available to the
notes.
Downgrade Sensitivities
Unanticipated increases in the frequency of defaults and decreases
in recoveries on defaulted receivables could produce loss levels
higher than Fitch's base case, and are likely to result in a
decline in CE and remaining loss-coverage levels available to the
notes. Decreased CE may make certain note ratings susceptible to
negative rating action, depending on the extent of the coverage
decline. Hence, Fitch conducts sensitivity analysis by stressing a
transaction's initial base-case assumptions; these include
increasing WA defaults and decreasing the WA recovery rate.
The rating sensitivity section provides insight into the
model-implied sensitivities the transaction faces when assumptions
- defaults or recoveries - are modified, while holding others
equal. The modelling process uses the modification of default and
loss assumptions to reflect asset performance in up and down
environments. The results should only be considered as one
potential outcome, as the transaction is exposed to multiple
dynamic risk factors.
Notes: Class A1-a / Class A1-x / Class B / Class C / Class D /
Class E / Class F
Expected Ratings: AAAsf / AAAsf / AAsf / Asf / BBBsf / BBsf / Bsf
10% defaults increase: AA+sf / AAAsf / AA-sf / A-sf / BBBsf / BBsf
/ less than Bsf
25% defaults increase: AA+sf / AAAsf / A+sf / BBB+sf / BBB-sf /
BB-sf / less than Bsf
50% defaults increase: AA-sf / AA+sf / A-sf / BBBsf / BBsf / less
than Bsf / less than Bsf
10% recoveries decrease: AAAsf / AAAsf / AA-sf / Asf / BBBsf / BBsf
/ less than Bsf
25% recoveries decrease: AAAsf / AAAsf / AA-sf / Asf / BBBsf / BBsf
/ less than Bsf
50% recoveries decrease: AA+sf / AAAsf / A+sf / A-sf / BBB-sf /
BB-sf / less than Bsf
10% defaults increase / 10% recoveries decrease: AA+sf / AAAsf /
A+sf / A-sf / BBB-sf / BBsf / less than Bsf
25% defaults increase / 25% recoveries decrease: AAsf / AA+sf / Asf
/ BBB+sf / BB+sf / Bsf / less than Bsf
50% defaults increase / 50% recoveries decrease: A+sf / AAsf /
BBB+sf / BBB-sf / BB-sf / less than Bsf / less than Bsf
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Economic conditions, loan performance and credit losses that are
better than Fitch's baseline scenario or sufficient build-up of CE
that would fully compensate for credit losses and cash flow
stresses commensurate with higher rating scenarios, all else being
equal.
Upgrade Sensitivities
The class A1-a and A1-x are at the highest level on Fitch's scale
and cannot be upgraded. As such, upgrade sensitivities are not
relevant.
Notes: Class B / Class C / Class D / Class E / Class F
Expected Ratings: AAsf / Asf / BBBsf / BBsf / Bsf
10% defaults decrease / 10% recoveries increase: AA+sf / A+sf /
A-sf / BB+sf / B+sf
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
As part of its ongoing monitoring, Fitch reviewed a small targeted
sample of Pepper Asset Finance's origination files and found the
information contained in the files to be adequately consistent with
the originator's policies and practices and the other information
provided to the agency about the asset portfolio. Prior to the
transaction closing, Fitch sought to receive a third-party
assessment conducted on the asset portfolio information, but none
was made available to Fitch.
Overall, Fitch's assessment of the asset pool information relied
upon for the agency's rating analysis, according to its applicable
rating methodologies, indicates that it is adequately reliable.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
SAPPHIRE XXIX 2024-1: Fitch Assigns 'BB+(EXP)' Rating on E Notes
----------------------------------------------------------------
Fitch Ratings has assigned expected ratings to Sapphire XXIX Series
2024-1 Trust's mortgage-backed pass-through floating-rate notes.
The issuance consists of notes backed by a pool of first-ranking
Australian residential conforming and non-conforming full- and
low-documentation mortgage loans originated by Bluestone Group Pty
Limited and Bluestone Mortgages Pty Limited.
The notes will be issued by Permanent Custodians Limited in its
capacity as trustee of Sapphire XXIX Series 2024-1 Trust, a
separate and distinct trust created under a master trust deed.
Entity/Debt Rating
----------- ------
Sapphire XXIX
Series 2024-1 Trust
A1L LT AAA(EXP)sf Expected Rating
A1S LT AAA(EXP)sf Expected Rating
A2 LT AAA(EXP)sf Expected Rating
B LT AA(EXP)sf Expected Rating
C LT A(EXP)sf Expected Rating
D LT BBB(EXP)sf Expected Rating
E LT BB+(EXP)sf Expected Rating
G1 LT NR(EXP)sf Expected Rating
G2 LT NR(EXP)sf Expected Rating
TRANSACTION SUMMARY
The collateral pool totalled AUD500 million and consisted of 986
obligors with a weighted-average (WA) current loan/value ratio
(LVR) of 68.4% and a WA indexed current LVR of 62.6% as of the 31
January 2024 cut-off date.
KEY RATING DRIVERS
Credit Enhancement Buffers Expected 'AAAsf' Losses: The 'AAAsf' WA
foreclosure frequency (WAFF) of 18.6% is driven by WA unindexed
current LVR of 68.4%, low documentation loans of 63.4%,
self-employed borrowers of 73.3% and, under Fitch's methodology,
non-conforming and investment loans of 18.6% and 27.4%,
respectively. The 'AAAsf' WA recovery rate (WARR) of 57.4% is
driven by the portfolio's WA indexed scheduled LVR of 63.6%.
The class A1S and A1L notes benefit from credit enhancement of
22.0%, and the class A2, B, C, D and E notes 11.0%, 5.7%, 3.7%,
1.8% and 0.5%, respectively.
Liquidity Risk Mitigated: Fitch's payment interruption risk is
mitigated by a liquidity facility sized at 1.5% of the invested
note balance (excluding class RM), with a floor of AUD750,000.
Other structural features include retention and amortisation
amounts that divert excess available income to repay note
principal, and a yield enhancement reserve that traps excess income
with a limit of AUD1.0 million.
Low Operational and Servicing Risk: Bluestone is a non-bank lender
with extensive experience in originating, servicing and managing
its mortgage portfolio. Fitch undertook an operational review and
found that the operations of the originator and servicer were
comparable with market standards and that there were no material
changes that may affect Bluestone's ongoing ability to undertake
administration and collection activities.
Tight Labour Market to Support Outlook: Portfolio performance is
supported by Australia's continued economic growth and tight labour
market, despite rapid interest rate hikes during 2022-2023. GDP
growth in 2023 was 1.5% and unemployment was 4.1% in January 2024.
Fitch expects steady GDP growth in 2024, with unemployment rising
to 4.2%. This reflects Fitch's expectation of the impact of China's
property downturn and the lagged effect of tighter monetary policy
on consumption.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Transaction performance may be affected by changes in market
conditions and the economic environment. Weakening asset
performance is strongly correlated with increasing delinquencies
and defaults, which could reduce credit enhancement available to
the notes.
Downgrade Sensitivity
Unanticipated increases in the frequency of defaults and loss
severity on defaulted receivables could produce loss levels higher
than Fitch's base case, and are likely to result in a decline in
credit enhancement and remaining loss-coverage levels available to
the notes. Decreased credit enhancement may make certain note
ratings susceptible to negative rating action, depending on the
extent of the coverage decline. Hence, Fitch conducts sensitivity
analysis by stressing a transaction's initial base-case
assumptions.
The rating sensitivity section provides insight into the
model-implied sensitivities the transaction faces when assumptions
- WAFF or WARR - are modified, while holding others equal. The
modelling process uses the modification of default and loss
assumptions to reflect asset performance in up and down
environments. The results should only be considered as one
potential outcome, as the transaction is exposed to multiple
dynamic risk factors.
Note: A1S / A1L / A2 / B / C / D / E
Expected Rating: AAAsf / AAAsf / AAAsf / AAsf / Asf / BBBsf /
BB+sf
Increase defaults by 15%: AAAsf / AAAsf / AAAsf / AA-sf / A-sf /
BBBsf / BB+sf
Increase defaults by 30%: AAAsf / AA+sf / AA+sf / A+sf / BBB+sf /
BBB-sf / BBsf
Reduce recoveries by 15%: AAAsf / AAAsf / AAAsf / AAsf / Asf /
BBBsf / BB+sf
Reduce recoveries by 30%: AAAsf / AAAsf / AAAsf / AAsf / Asf /
BBBsf / BB+sf
Increase defaults by 15% and reduce recoveries by 15%: AAAsf /
AAAsf / AAAsf / AA-sf / A-sf / BBBsf / BB+sf
Increase defaults by 30% and reduce recoveries by 30%: AAAsf /
AA+sf / AA+sf / A+sf / BBB+sf / BBB-sf / BBsf
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
An upgrade could result from macroeconomic conditions, loan
performance and credit losses that are better than Fitch's baseline
scenario or sufficient build-up of credit enhancement that would
fully compensate for credit losses and cash flow stresses
commensurate with higher rating scenarios, all else being equal.
The class A1S, A1L and A2 notes are at the highest level on Fitch's
scale and cannot be upgraded. As such, upgrade sensitivity
scenarios are not relevant.
The rating on the class E is constrained by the large obligor
concentration test that limits the rating at its current level;
one-notch lower than the model-implied rating. Prepayments to the
loans with the largest obligor exposure, which result in the notes
passing Fitch's concentration test, could lead to positive rating
action for the notes, all else being equal.
Upgrade Sensitivity
Note: A1S / A1L / A2 / B / C / D / E
Expected Rating: AAAsf / AAAsf / AAAsf / AAsf / Asf / BBBsf /
BB+sf
Decrease defaults by 30% and increase recoveries by 30%: AAAsf /
AAAsf / AAAsf / AA+sf / A+sf / BBB+sf / BB+sf
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
As part of its ongoing monitoring, Fitch reviewed a small targeted
sample of Bluestone's origination files and found the file
information to be adequately consistent with the originator's
policies and practices and the other information provided to the
agency about the asset portfolio. Prior to the transaction closing,
Fitch sought to receive a third-party assessment conducted on the
asset portfolio information, but none was made available to Fitch
for this transaction.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis, according to its applicable rating methodologies,
indicates that it is adequately reliable.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
ZIP MASTER 2024-1: S&P Assigns Prelim. 'B(sf)' Rating on F Notes
----------------------------------------------------------------
S&P Global Ratings assigned its preliminary ratings to six classes
of notes to be issued by Perpetual Corporate Trust Ltd. as trustee
of Zip Master Trust - Series 2024-1. Zip Master Trust - Series
2024-1 is a securitization of a buy now, pay later line of credit
receivables to consumers originated by zipMoney Payments Pty Ltd.
(Zip).
The preliminary ratings reflect the following factors:
-- S&P's view of the credit risk of the underlying collateral
portfolio, including the fact that the portfolio has an initial
revolving period, which means further receivables may be assigned
to the series after the closing date.
-- S&P's view that the credit support provided to each class of
rated notes is commensurate with the ratings assigned. Credit
support is provided by subordination and excess spread, if any.
-- S&P's expectation that the various mechanisms to support
liquidity within the series, including a series-specific liquidity
facility, mitigates disruption risks to senior fees and ensures
timely payment of interest on the rated notes.
-- The transaction documents include downgrade language consistent
with S&P's counterparty criteria that requires the replacement of
the bank account provider and liquidity facility provider should
its rating on the providers fall below the applicable rating.
-- The legal structure of the master trust is established as a
special-purpose entity and meets S&P's criteria for insolvency
remoteness.
Preliminary Ratings Assigned
Zip Master Trust – Series 2024-1
Class A, A$150,000,000: AAA (sf)
Class B, A$33,470,000: AA (sf)
Class C, A$15,250,000: A (sf)
Class D, A$23,830,000: BBB (sf)
Class E, A$12,300,000: BB (sf)
Class F, A$2,630,000: B (sf)
Class G, A$12,520,000: Not rated
=========
C H I N A
=========
COUNTRY GARDEN: Kingboard Offers Developer Debt Reprieve
--------------------------------------------------------
The Standard reports that Kingboard Holdings Ltd said it will give
more time to Country Garden to repay the debts, though its
subsidiary filed a winding-up petition against the embattled
mainland developer last month.
It comes as both Kingboard and Kingboard Laminates jumped nearly 7
percent on March 18 on forecast improvement this year.
Last year, the net profit of Kingboard slumped 44 percent to
HK$2.06 billion and the final dividend was slashed by 52 percent to
36 HK cents per share, The Standard discloses. The company blamed
the provisions of HK$893.9 million for the credit loss of a loan to
Country Garden.
In terms of the liquidation petition, Kingboard chairman Cheung
Kwok-wing said the move is out of the responsibility of the
shareholders, according to The Standard.
Meanwhile, Kingboard Laminates said the net profit last year dived
52 percent to HK$907 million and reduced the final dividend by 50
percent to 10 HK cents apiece, adds The Standard.
About Country Garden
Country Garden Services Holdings Co Ltd (HKE:6098) is an investment
holding company, invests, develops, and constructs real estate
properties primarily in Mainland China. The company operates in
two
segments, Property Development and Construction. It develops
residential projects, such as townhouses and condominiums; and car
parks and retail shops. The company also develops, operates, and
manages hotels. In addition, it researches and develops robots;
sells electronic hardware and food; and provides interior
decoration, agriculture, landscape design, investment and
management consulting, cultural activity planning, and real estate
consulting services.
As reported in the Troubled Company Reporter-Asia Pacific on Dec.
18, 2023, Fitch Ratings has maintained Country Garden Services
Holdings Company Limited's (CGS) Long-Term Issuer Default Rating
(IDR) of 'BB+' on Rating Watch Negative (RWN). At the same time,
Fitch has withdrawn the rating.
The RWN captures the risk of an erosion in CGS's liquidity and
working capital, as well as any change in its financial policies,
in light of the heightened liquidity pressure at its sister
company, Country Garden Holdings Company Limited (CGH). The 'BB+'
IDR is supported by CGS's leading market position, sustained
operating and free cash flow (FCF) generation from its stable,
asset-light business and robust net cash position.
Fitch has chosen to withdraw CGS' ratings for commercial reasons.
GEMDALE CORP: Is on Track to Repay All Bonds This Quarter
---------------------------------------------------------
Yicai Global, citing China Securities Journal, reports that Gemdale
Corporation will be able to meet its bond repayment obligations in
the first three months after the heavily indebted Chinese developer
was able to secure two bank loans totalling CNY6.5 billion (USD900
million).
Gemdale has paid off the principal and interest on a bond that fell
due on March 22, amounting to CNY1.13 billion (USD157 million), the
report said, Yicai relays. The Shenzhen-based company has already
repaid two other bonds worth a combined CNY3.5 billion in the past
month.
And there is another medium-term note whose principal and interest
amount to CNY1.5 billion (USD208 million) that matures on March 24
and these funds are also ready, the developer said. Gemdale expects
to successfully repay all public bonds in the first quarter, Yicai
relays.
On top of this, Gemdale still has 10 yuan-denominated bonds worth
CNY13.8 billion (USD1.9 billion) that are outstanding, according to
Wind data. Seven of these, amounting to CNY8.2 billion, are due
within the next 12 months, so the firm remains under considerable
pressure.
Operations are stable and the timely and full repayment of debt
remains a priority, Gemdale said. The company will continue to
operate prudently, according to Yicai.
Dragged down by the sluggish real estate market, Gemdale's net
profit plunged 85.4 percent in 2023 from a year earlier to CNY888
million (USD120 million), while revenue slumped 18.4 percent to
CNY98.1 billion (USD13.6 billion), Yicai discloses citing the
company's latest earnings report released on March 14.
About Gemdale Corp
Gemdale Corp -- https://www.gemdale.com/ -- is a China-based
company principally engaged in the development and sales of real
estate. The Company's main businesses include residential real
estate development, commercial real estate and industrial real
estate development and operation, real estate finance, property
leasing and property management services. The Company mainly
conducts its businesses in the domestic market.
As reported in the Troubled Company Reporter-Asia Pacific in
December 2023, Moody's Investors Service has downgraded the
corporate family rating of Gemdale Corporation to Caa1 from B3 and
the CFR of Famous Commercial Limited, Gemdale's wholly-owned
subsidiary, to Caa2 from Caa1.
Moody's has also downgraded the backed senior unsecured rating on
the bonds to Caa2 from Caa1 and the backed senior unsecured rating
to (P)Caa2 from (P)Caa1 on the medium-term note (MTN) program. The
bonds and the MTN program are issued by Gemdale Ever Prosperity
Investment Limited (Gemdale Ever Prosperity) and guaranteed by
Famous. Gemdale Ever Prosperity's offshore bonds and MTN programs
are supported by Gemdale through keepwell deeds and deeds of equity
interest purchase undertaking.
At the same time, Moody's has maintained the negative rating
outlooks for all the entities.
=========
I N D I A
=========
APS STEELS: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Aps Steels
Private Limited (APS) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.5 CRISIL D (Issuer Not
Cooperating)
Inland/Import 5.0 CRISIL D (Issuer Not
Letter of Credit Cooperating)
CRISIL Ratings has been consistently following up with APS for
obtaining information through letter and email dated February 15,
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 APS, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on APS
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
APS continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
APS, incorporated in 2006, manufactures MS ingots at its facility
at Hindupur in Andhra Pradesh. The company was acquired by the OP
Gupta group in 2012.
ARUN POLYMERS: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Arun Polymers
- Dindigul (AP) continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 4 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with AP for
obtaining information through letter and email dated February 15,
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 AP, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AP is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of AP
continues to be 'CRISIL D Issuer Not Cooperating'.
AP was set up in 2013 in Dindigul, Tamil Nadu as a proprietorship
firm by Mr T Arunkumar. The firm manufactures polypropylene woven
bags. It has an installed capacity of 150 tonne per day (tpd).
AWATE ENGINEERING: Liquidation Process Case Summary
---------------------------------------------------
Debtor: Awate Engineering Private Limited
Block D, Plot 62,
MIDC Ranjangaon Area,
Tal. Shirur,
Pune - 412210
Liquidation Commencement Date: March 5, 2024
Court: National Company Law Tribunal Mumbai Bench
Liquidator: Fanendra H Munot
Flat No. 1002, 10th Floor, 'C' Wing,
Prathamesh Darshan, Ghatkopar East,
Opp. Railway Station,
Mumbai - 400075
Email: fhmunot@gmail.com
5th Floor, Labhade Prestige,
Off Karve Road,
Deccan Gymkhana, Pune 411004
Email: liquidation.awate@gmail.com
Cell: 7378559292
Last date for
submission of claims: April 13, 2024
BECKHEM TRADING: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Beckhem Trading Private Limited
Office No 304, Lotus House
New Marine Lines
Near Bombay Hospital
Mumbai - 400020
Insolvency Commencement Date: March 7, 2024
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: September 3, 2024
Insolvency professional: Kamal Kishor Gurnani
Interim Resolution
Professional: Kamal Kishor Gurnani
Flat No. 402, Building No. 23E
Palazzio CHS Ltd.
Mahada Housing Society
Powai, Mumbai 400076
Email Id: kamalgurnaniip@gmail.com
-- and --
Renascence Insolvency Resolution
Professionals Private Limited
101, Kanakia Atrium 2, Cross Road A
Chakala MIDC, Andheri East
Mumbai 400093
Email Id: cirp.btpl@rirp.co.in
Email: kamal@rirp.co.in
Last date for
submission of claims: March 21, 2024
BHARAT MOTORS: CARE Lowers Rating on INR43.41cr LT Loan to D
------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Shree Bharat Motors Limited (SBML), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 43.41 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE B; Stable
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 4,
2023, placed the rating(s) of SBML under the ‘issuer
non-cooperating' category as SBML 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. SBML
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated November 20, 2023, November 30, 2023, December
10, 2023, March 8, 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).
The ratings assigned to the bank facilities of SBML have been
revised on account of delays in debt servicing recognised from
audit report of FY23, available from registrar of the companies.
Shree Bharat Motors Ltd. (SBML) promoted by Mr Jay Prakash Didwania
commenced its operations in 1998. The company currently has
dealership of Bajaj Auto (3W), Daimler (CV), Triumph motorcycles
(2W) and Jeep (4W). SBML has a total of 13 showrooms.
C I FINLEASE: ICRA Withdraws B+ Rating on INR10cr LT Loan
---------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of C
I Finlease Limited at the request of the company and based on the
No Objection Certificate (NOC) received from its 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 and their Description, Liquidity Position, Rating
Sensitivities have not been captured as the rated instruments are
being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 10.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Withdrawn
Cash Credit
CIFL is promoted by Mr Rakesh Malik, Chairman, of the C.I. Group of
companies, and has experience in trading of over two decades, and
total industry experience of over three decades. CIFL is an
authorized dealer of HMIL cars, its spare parts and accessories and
also offers servicing of HMIL vehicles. The company has two
showrooms and one service center in Bhopal, Madhya Pradesh.
COUNTRY CLUB: ICRA Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
ICRA has kept the long-term rating of Country Club Hospitality and
Holidays Limited (Formerly Country Club (India) Limited) in the
'Issuer Not Cooperating' category. The rating is denoted as
[ICRA]D; ISSUER NOT COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 281.45 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long Term- 18.55 [ICRA]D; ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain under
'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Country Club Hospitality and Holidays Limited (Formerly
Country Club (India) 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 1989, CCHHL is in the holiday and leisure services
business providing family clubbing facilities and timeshare
vacations to its members spread across 51 properties (33 owned, 16
associated properties and 2 leased) reinforced by 220-plus India
and global affiliations (via Country Vacations) and 3900 resorts
(via RCI affiliation). It has 436,933 individual members and 600
corporate members comprising brands like Microsoft, Tech Mahindra,
CMC Limited (now merged with TCS Limited) and Dr. Reddy's Labs,
among others. CCHHL started its operations under the banner Amrutha
Estates in 1981 as a real estate development company in South
India. In 1989, the company entered the clubbing business with the
objective to make clubbing accessible and affordable to the
upwardly population in India.
EAGLE ELECTRONIC: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Eagle Electronic (India) Private Limited
H No 65, CTS No 142-A-B
Behind Chitramandir Talkies
Nashik, Maharashtra
India 422001
Insolvency Commencement Date: March 6, 2024
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: September 2, 2024
Insolvency professional: Kanak Jani
Interim Resolution
Professional: Kanak Jani
17, Sai Moreshwar Luxuria
Plot No 74, Sector 18, Kharghar
next to Sanjeevani International School
Navi Mumbai, Maharashtra 410210
Email: kanaki@yahoo.com
Email: eagle.cirp@gmail.com
Last date for
submission of claims: March 20, 2024
ECSTASY REALTY: CARE Keeps C Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Ecstasy
Realty Private Limited (ERPL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 500.00 CARE C; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Non-convertible 250.00 CARE C; ISSUER NOT COOPERATING
debentures Rating continues to remain
under ISSUER NOT COOPERATING
category
Non-convertible 600.00 CARE C; ISSUER NOT COOPERATING
debentures Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Limited (CARE Ratings) had, vide its press release
dated March 23, 2020, placed the rating(s) of ERPL under the
'issuer non-cooperating' category, as ERPL had failed to provide
information for monitoring of the ratings. ERPL continues to be
non-cooperative despite repeated requests for submission of
information through, phone calls and e-mails dated February 19,
2024; February 15, 2024; and February 9, 2024.
In line with the extant Securities and Exchange Board of India
(SEBI) guidelines, CARE Ratings has reviewed the rating based on
the best-available information, which in CARE Ratings' opinion is
not sufficient to arrive at a fair rating. Ratings for ERPL's bank
facilities and instruments are denoted as CARE D/CARE C; ISSUER NOT
COOPERATING.
Users of these ratings (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Rating sensitivities: Not applicable
Analytical approach: Standalone
Outlook: Not applicable
Detailed description of the key rating drivers:
At the time of the last rating on March 16, 2023, the following
were the rating strengths and weaknesses (updated for the
information available from BSE announcements for listed debts):
Key weaknesses
* Delays in debt servicing for the non-convertible debenture issue
There are ongoing delays in servicing of the non-convertible
debenture (NCD) issued by ERPL.
* Sluggishness in sales of Phase-I, though expected to improve post
receipt of OC: ERPL had earlier envisaged the OC to be received in
March 2018, which was received only in December 2018. Hence, the
number of flats expected to be sold in FY19 were lower than that
envisaged. However, after receipt of OC, sales have gathered
momentum and ERPL has been able to sell eight new flats, as comfort
for a buyer is higher for a flat with OC available. Currently, of
the 122 available flats, 79 flats have been sold with residents
moving into their apartments.
* Partial dependency on promoter funds for NCD coupon payment:
Due to above postponement of envisaged cashflows, ERPL was totally
dependent on promoter support for repayment of the
quarterly NCD coupon. Delays in servicing of the NCD issue still
continue.
* Nascent stage of the project's Phase-II thereby exposed to
execution risks: For the project's Phase-II, land has been acquired
and plan has been submitted to authorities for final approval,
which is expected to be received shortly. Given the nascent stage
of construction, with approvals pending, risk exists pertaining to
the project's timely execution. Financial closure towards the same
is pending. With significant proportion of total cost to be funded
through customer advances, funding risk persists.
* Cyclicality in real estate industry: The capital-intensive real
estate industry is highly cyclical. Though reforms announced
recently in real estate sector have been taken in the right
direction, the investor's confidence is yet to pick up. Major
challenges pertaining to clearances, land acquisition,
project delay, liquidity issues, slow sales and pile-up of
inventory, are yet to be addressed for complete recovery of the
sector. The recent liquidity crisis in non-banking finance
companies (NBFCs) and housing finance companies (HFCs) impacted the
real estate sector, as accessing capital from lenders has become
tougher. However, with the improvement in macro-economic
conditions in the country, the real estate sector is expected to
attain a gradual recovery.
Key strengths
* Promoters' experience and track record: Shobhit J. Rajan, ERPL's
promoter, has over 20 years' experience in the construction
industry. He was earlier a Director in Gammon India Limited and was
responsible for procurement, resource raising and execution of
projects. He has also been the recipient of several industrial
accolades. He is assisted by a team of experienced management team.
Over the years, under the leadership of Shobhit Rajan, the
Raiaskaran Group (RG) has been involved in development of
residential and commercial spaces in Mumbai aggregating to 2
million ft2.
* Property's prime location in Mumbai real estate market: ERPL is
currently developing a premium residential tower named
“Parthenon” located at J P Road, Versova in Mumbai. Versova is
one of the most prime locations in the western region of Mumbai.
This residential tower forms Phase-I of the project. ERPL is also
proposing to develop Phase-II, which shall be located adjacent to
the “Parthenon” building, comprising residential flats,
commercial complex, and a club house. The project is located very
close to D.N. Nagar station of Mumbai Metro which provides seamless
East-West suburban connectivity. The neighbourhood is also well
developed with all the urban amenities in proximity including
malls, multiplex, schools, college, and restaurants, among others.
The location is approximately 5 km from Andheri suburban Railway
station and about 10-15 km from the Mumbai Domestic & International
Airport. The site is well connected by roads through S.V. Road,
Western Express Highway, and Jogeshwari-Vikhroli Link Road.
Liquidity: Poor
The company's liquidity was under stress due to weak cash accruals
vis-à-vis large debt obligations per the previous ratings.
However, financials of FY23 and FY22 are not available to comment
upon.
ERPL is a group company of the Mumbai-based Raiaskaran Group (RG),
incorporated in 1992. RG, established by Shobhit Rajan, is into
real estate development of commercial and residential spaces. ERPL
is developing a residential tower named "Parthenon" (MAHARERA
Registration No. P51800008444) located at J P Road, Versova in
Mumbai, having total saleable area of 6.35 lakh
sqft. This forms Phase-I of the proposed development plan of RG in
Versova.
ELECTRA ACCUMULATORS: CRISIL Keeps D Rating in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Electra
Accumulators Limited (EAL) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 17.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with EAL for
obtaining information through letter and email dated February 15,
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 EAL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on EAL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
EAL continues to be 'CRISIL D Issuer Not Cooperating'.
Established in 1962 by the late Mr Shantilal Sanghavi and his
family, EAPL manufactures automotive batteries, tubular batteries,
and solar batteries. It has its manufacturing units in Vapi
(Gujarat). The operations are managed by Mr Chetan Sanghvi.
FACTORY ONE: Voluntary Liquidation Process Case Summary
-------------------------------------------------------
Debtor: Factory One Private Limited
B-229, Ramprastha, Ghaziabad,
Uttar Pradesh - 201011
Liquidation Commencement Date: March 9, 2024
Court: National Company Law Tribunal Chandigarh Bench
Liquidator: Anil Rustgi
H. No. 524, Tower-6,
H E W O-1, Sector-56,
Gurgaon, Haryana - 122 011
Email: anil_rustgi2yahoo.co.in
Mobile: 987333343
Last date for
submission of claims: April 8, 2024
GO FIRST: Bidder Ups Bid Following Banks' Nudge, Say Sources
------------------------------------------------------------
Reuters reports that one of the two bidders for bankrupt Indian
airline Go First has raised its offer following a nudge from
lenders, two banking sources and a person aware of the development
said on March 19.
Reuters relates that the consortium, which includes budget carrier
SpiceJet's managing director Ajay Singh and Busy Bee Airways,
increased the bid amount between INR1 billion ($12.06 million) and
INR1.5 billion, one of the sources said. The original bid amount
stood at INR16 billion.
The sources did not wish to be identified as they were not
authorised to speak to the media, Reuters notes.
Emails seeking comments from Reuters to Go First's resolution
professional, who conducts the bankruptcy process, Singh, Spicejet
and Busy Bee majority shareholder Nishant Pitti did not immediately
get a response.
Pitti is the CEO of online travel platform EaseMyTrip.
Go First, which filed for bankruptcy in May last year, received two
financial bids as part of its bankruptcy process, the second being
Sharjah-based Sky One Airways, Reuters had reported.
"The bid amount in both the offers was far below the expectations
of the Committee of Creditors (CoC) and would involve a deep
haircut, which is why both the bidders were asked to revise their
offer upwards," Reuters quotes a banker with a state-run bank that
has exposure to Go First as saying.
Its bankruptcy filing lists Central Bank of India, Bank of Baroda,
IDBI Bank and Deutsche Bank among creditors to which it owes a
total of INR65.21 billion, Reuters discloses.
The CoC, through the resolution professional, are in talks with Sky
One, the banker added. Sky One Airways did not immediately respond
to a request for comment.
Singh and Busy Bee's joint bid will be discussed in the next CoC
meeting that is likely to be held early next week, the second
banker, as cited by Reuters, said.
Lenders are expected to revert to the bidders by March 28, this
banker added.
About Go First
Go First, formerly known as GoAir, was an Indian ultra-low-cost
airline based in Mumbai, Maharashtra. Go First was incorporated in
April 2004 as GoAir and commenced flight operations in November the
following year. Its inaugural flight was from Mumbai to Ahmedabad.
The airline is owned by the Wadia Group.
Go First filed an application for voluntary insolvency resolution
proceedings before National Company Law Tribunal (NCLT) on May 2,
2023.
The company said the filing with the NCLT comes after Pratt &
Whitney, the exclusive engine supplier for the airline's Airbus
A320neo aircraft fleet, refused to comply with an order to release
engines to the airline that would have allowed it return to full
operations.
Go First owes INR6,521 crore to its financial creditors, Bank of
Baroda, IDBI Bank, and Deutsche Bank. The airline has a total
liability of about INR11,463 crore to banks, other creditors,
vendors, and others.
On May 10, 2023, the NCLT accepted Go First's voluntary insolvency
petition. The NCLT bench appointed Abhilash Lal as the interim
resolution professional to look after the affairs of Go First and
also suspended its board as part of the insolvency resolution
process.
GRAM VAANI: Voluntary Liquidation Process Case Summary
------------------------------------------------------
Debtor: Gram Vaani Community Media Private Limited
384/2, 100 Futa Road, First Floor,
Left Side Vill Ghitorni,
Near Raj Medical Store,
New Delhi - 110030
Liquidation Commencement Date: March 11, 2024
Court: National Company Law Tribunal Allahabad Bench
Liquidator: Munish Kumar Sharma
AAF-14, Shipra Krishna Azure,
Kaushambi, Ghaziabad-201012, UP
Email: munish@mksadvisors.com
Contact: 0120-4165725
Contact: 98185-67143
Last date for
submission of claims: April 10, 2024
GREENTECH MEGA: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Greentech
Mega Food Park Limited (GMFPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 24.05 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 09,
2023, placed the rating(s) of GMFPL under the 'issuer
non-cooperating' category as GMFPL 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. GMFPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated November 25, 2023, December 5,
2023, December 15, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Jaipur-based Greentech Mega Food Park Ltd (GMFPL) was incorporated
in 2012 as a private limited company by CG Foods India Pvt. Ltd.
(CGFPL), ARG Developers Pvt. Ltd., Genus Power Infrastructures Ltd,
Kamtech Associates Pvt. Ltd., Mr Surja Ram Meel, Mr Suresh Agarwal
and Mr Sunil Bansal with CGFPL being the lead promoter.
Subsequently, constitution of the company was changed from private
limited to public limited (closely held) in October, 2016. Further
in FY17, Neccon Power & Infra Ltd. bought 10% stake in the company.
The company is operating Mega Food Park at Roopangarh, Distt. Ajmer
with total developed area of 3.45 LSM. The company is leasing out
industrial plots to the participant for 99 years. Further, it will
also receive monthly rental from leasing out core and non-core
infrastructure like warehouses, SDF sheds, cold storages,
Individual Quick Freezer (IQF), power, Effluent treatment plant
(ETP), Sewage Treatment Plant (STP) etc.
GVMC PUBLIC: CARE Keeps B- Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of The G V M
C Public Health Employees Mutually Aided Thrift and Cooperative
Credit Society (GVMC) continue 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 had, vide its press release dated February 20, 2018, placed
the ratings of GVMC under the 'issuer non-cooperating' category as
company had failed to provide information for monitoring of the
rating. The cooperative society continues to be non-cooperative
despite repeated requests for submission of information through
e-mails, phone calls and email dated November 19, 2023, November
29, 2023 and December 9, 2023.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which,
however, in CARE'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.
Analytical Approach: Standalone
Detailed description of the key rating drivers
At the time of last rating on January 3, 2023, the following were
the rating strengths and weaknesses:
Key Rating Weakness
* Relatively small scale of operation despite long track record:
GVMC being established in 1941, has long-term presence of more than
seven decades in the money lending business. Despite
the long existence, the society remains relatively small in size
with an outstanding loan portfolio of INR10.04 crore as on March
31, 2016 (Provisional). The society has been entirely funding to
the employees of GVMC. However, the society is raising funds from
banks and deposits from members to meet the regular credit
requirement of GVMC employees.
* Concentrated loan portfolio: The product and customer profile of
GVMC is concentrated having 100% credit exposure to GVMC employees
resulting in small scale businesses. There is no collateral
requirement for the loans extended to employees except approval
from the surety (employees of GVMC). The borrowing rate of the
society at present is 17% p.a. Apart from concentrated loan
portfolio, the society also has regional concentration with single
branch operating in Visakhapatnam, Andhra Pradesh. This in turn
limits the scale of operation.
* Limited resource profile: The major source of external funding
for GVMC has been term loans from Bank and deposits from members
and employees. The total term loan accounted for 67% of the total
debt as on March 31, 2016 (Provisional). The society depends
heavily on bank funding.
* Highly geared financial risk profile: The overall gearing of the
society [4.37x as on March 31, 2016 (Provisional)] has been on the
higher side as on last three account closing dates mainly due to
high dependency on external funding to support the loan portfolio.
The interest coverage of the society despite improving y-o-y
remained weak at 1.23x during FY16 (Provisional) (refers to the
period April 1 to March 31).
Key Rating Strengths
* Established track record and experienced management: GVMC was
established in the year 1941. Mr Satyanaryana (President) has ten
years of experience in credit co-operative society. Mr Anand
(Secretary) is also actively involved in the day to day operations
of the society. The society is well supported by the other
management team Mr Byragi Raju and Mr Sridhar among others for
smooth functioning of the society. GVMC is registered under
Mutually Aided Co-operative Society Act of Andhra Pradesh, 1995
where the each society is governed by its own set of bylaws. There
is no intervention from any government regulatory bodies.
* Growth in scale of operation and improving return on total assets
(ROTA) during review period: Due to small scale of operation and
narrow interest spread, the revenue (interest income) of the
society remained small during O C T Credit Analysis & Research
Limited 2 last three year. However, the total operating income of
the society increased at Compounded Annual Growth Rate of 18.96%
from INR1.06 crore in FY14 to INR1.50 crore in FY16 (Provisional)
albeit fluctuation in loan portfolio. The PAT of the society
increasing y-o-y i.e., from INR0.09 crore in FY14 to INR0.23 crore
in FY16 (Provisional). Furthermore, ROTA of the society improving
year on year i.e., from 1.92% in FY15 to 2.13% in FY16
(Provisional) due to growth in interest income as well as growth in
the asset portfolio.
* Satisfactory asset quality: As on March 31, 2016, the society has
reported zero Non-performing Assets (NPA) accounts. The loans
extended by GVMC are based upon the salaries of employees and the
amount of loan goes up to maximum of INR3 lakhs/member with loan
tenure of 5 years. The society will not have any NPAs as the
society undertakes surety from two members. In case of death of the
employee, the society provides grace period of six month for
payment of the loan. Apart, the job will be provided to the
concerned employee family member. Due to the above said factors,
the recovery of payment is 100% for the society.
* Moderate outlook on industry: The operations of the society are
similar to that of Non-Banking Financial Companies (NBFC) which
have rapidly emerged as an important segment of the Indian
financial system. Moreover, NBFCs assume significance in the small
business segment as they primarily cater to the credit requirements
of the unorganized sector such as wholesale & retail traders,
small-scale industries and small borrowers at the local level. NBFC
is a heterogeneous group of financial institutions, performing a
wide range of activities like hire-purchase finance, vehicle
financing, equipment lease finance, personal loans, working capital
loans, consumer loans, housing loans, loans against shares and
investment, etc. The segment has witnessed considerable growth in
the last few years and is now being recognized as complementary to
the banking sector due to implementation of innovative marketing
strategies, introduction of tailor-made products, customer-oriented
services, and attractive rates of return on deposits and simplified
procedures, etc.
The GVMC Public Health Employees Mutually Aided Thrift and Credit
Co-operative Society Limited (GVMC) was established in the year
1941. The society is engaged in lending loans to employees of GVMC
@ 17% interest with a maximum loan limit of INR3 lakh per member
with loan tenure of 5 years. GVMC has 4000 employees, however, the
society has given loans to 1200 employees only as on August 31,
2016.
JASMINE BUILDMART: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Jasmine Buildmart Private Limited
Unit No. 201/202, Plot No. 8
Elegance Tower, Jasola
New Delhi 110025
Insolvency Commencement Date: March 9, 2024
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: September 6, 2024
Insolvency professional: Devvart Rana
Interim Resolution
Professional: Devvart Rana
Apt 684, Sector-A, Block B & C
Vasant Kunj, New Delhi 110070
Email: devvartrana@gmail.com
Email: cirpjasmine@gmail.com
Last date for
submission of claims: March 23, 2024
KOPALLE PHARMA: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Kopalle
Pharma Chemicals Private Limited (KPCPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 9.75 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 04,
2023, placed the rating(s) of KPCPL under the 'issuer
non-cooperating' category as KPCPL 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. KPCPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated November 20, 2023, November
30, 2023, December 10, 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).
Kopalle Pharma Chemicals Private Limited (KPCPL) was incorporated
in 1981 and the company was taken over by the present promoter; by
Mr. G. Ramesh (Managing Director) in 2012. The company is engaged
in manufacturing of active pharmaceutical ingredients (API's) &
intermediaries. KPCPL is an ISO 9001:2008 certified company and has
a GMP Certified manufacturing facility at Jeedimetla in Hyderabad.
The company is primarily a domestic player and has product
portfolio of nearly 20 products with focus on anti-psychotic
segment.
KRANTIAGRANI DR: CARE Lowers Rating on INR100 LT Loan to B
----------------------------------------------------------
CARE Ratings has revised ratings on certain bank facilities of
Krantiagrani Dr. G. D. Bapu Lad Sahakari Sakhar Karkhana Limited
(KBSSKL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 100.00 CARE B; Stable; Revised from
Facilities CARE B-; Stable
Rationale and key rating drivers
The revision in the rating assigned to the bank facilities of
KBSSKL factors in the improvement in scale of operations and
profitability during FY23. The ratings continue to be constrained
by thin and fluctuating profitability margins and moderately
leveraged capital structure and weak debt coverage indicators. The
rating further continues to be constrained by working capital
intensive nature of operations leading to stretched liquidity and
seasonal, cyclical nature of the sugar industry and inherent to
agro-climatic risk.
The above constraints however continue to be offset by strength
derived from long and established track record of KBSSKL in the
sugar industry, partially integrated business model of sugar mill
resulting in de-risking of the core sugar business to a certain
extent, strategic location of the sugar factory in the area of high
recovery of sugarcane and healthy scale of operations. The rating
also takes cognizance of company keeping its large debt funded
project on hold.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Improvement in PBILDT margins of more than 12% on a sustained
basis.
* Improvement in gearing level below 1.5x on a sustained basis.
* Timely repayment of debt obligations maintaining DSCR above
unity.
Negative factors
* Decline in revenue/operating profit beyond 20% leading to
deterioration in liquidity.
* Adverse changes in government policies affecting the operations
and cash flow of the company.
Analytical approach: Standalone
Outlook: Stable
CARE Ratings believes that the entity will continue to benefit from
its long track record of operations with experienced management.
Detailed description of the key rating drivers:
Key weaknesses
* Cyclical and regulated nature of the industry: The sugar industry
is cyclical by nature and is vulnerable to the government policies
for various factors like its importance in the
Wholesale Price Index (WPI) as sugar is classified as an essential
commodity. The government resorts to various regulations like
fixing the raw material (sugarcane) prices in the form of State
Advised Prices (SAP) and Fair & Remunerative Prices (FRP). All
these factors impact the cultivation patterns of sugarcane in the
country and thus affect the profitability of the sugar companies.
India also continues to carry high levels of sugar inventory
largely due to the controlled release mechanism followed by the
Government. Thus, the company's performance can be impacted by
disproportionate increase in cane price in any particular year.
Furthermore, the profitability remains vulnerable to the
government's policies on exports, MSP and remunerative ethanol
prices. In addition, the cyclicality in sugar production results
in volatility in sugar prices.
* Inherent to agro-climatic risk: The sugar industry, being
directly dependent on the sugarcane crop and its yield, is
susceptible to agro climatic risks including pest and diseases.
Climatic conditions, more specifically, the monsoons influence
various operational parameters for a sugar entity, such as the
crushing period and sugar recovery levels.
* Thin and fluctuating profitability margins: The operating margins
of KBSSKL remained fluctuating during the period of FY19-23 in the
range of 1%-9% mainly due to high volatility in raw material
prices. In FY23, the PBILDT margin improved to 4.49% from 2.95% in
FY22 due to improvement in the scale of operations. The PAT margins
improved marginally but remained low at around 0.11% (vis-à-vis
0.08% in FY22) due to decrease in interest cost. KBSSKL, being a
co-operative society has relatively lower profit margin compared to
other private sugar factory, as it distributes the surplus profit
by way of incremental sugarcane payment.
* Moderately leveraged capital structure and weak debt coverage
indicators: KBSSKL's capital structure remained moderately
leveraged in past (FY18-21) with gearing level in the range of
2.00x to 2.98x owing to higher reliance on debt to fund its
business operation coupled with moderate net worth base. The same
has deteriorated marginally to 2.17x as on March 31, 2023
(vis-à-vis 2.00x as on March 31, 2022) owing to increase in debt
levels for its expansion plans. The debt coverage indicators
improved but remained weak during FY23 as indicated by an interest
coverage ratio of 0.77x in FY22, however, the same improved to
1.92x in FY23, due to improvement in PBILDT level. The total debt
to GCA, however, deteriorated to 15.20x in FY23 from 13.92x in FY22
due to increase in debt levels. The debt servicing is done through
recovery from inventory.
* Working capital intensive nature of operations: KBSSKL's
operations remain working capital intensive mainly on account of
funds being blocked in inventory. KBSSKL's operating cycle improved
to 133 days in FY23 as compared to 176 days in FY22, owing to
improvement in inventory period. The production of sugar in India
is highly seasonal in nature, with more than 80% of the sugar being
produced during the period of NovemberApril and sold in a staggered
manner over the year. The inventory period improved but remained
high at 135 days in FY23 vis-àvis 181 days in FY22 as company
needs to hold inventory longer due to the nature of business.
* Project funding and execution risk; however, deferment of plan to
ease pressure on its leverage in the near term: KBSSKL had planned
to set up a new distillery for production of 150 Kilo Liter Per Day
(KLPD) anhydrous alcohol or ethanol from molasses at Kundal, Taluka
Palus, Dist. Sangli, Maharashtra at an estimated total cost of
INR172 crore funded out of INR163 crore of term loan. However, the
Capex plan has been put on hold due to the decision of banning the
production of ethanol from sugarcane juice by GOI. The Capex is on
hold until further decision and long-term clarification from the
government.
Key strengths
* Long track record of operations with experienced management:
KBSSKL is a co-operative society promoted by Late. Krantiagrani Dr.
G.D. Lad to undertake the manufacturing of sugar and related
production. Mr. G.D. Lad was a social activist and ex. Member of
Legislative Assembly (MLA) from Tasgaon constituency. Currently,
the society is spearheaded by Mr. Arun Lad, son of Mr. G.D. Lad,
who has an experience of over 3 decades in the sugar industry and
is a leader of Nationalist Congress Party and a member of
Maharashtra Legislative Council from Pune. Mr. Lad is ably
supported by Mr. Vijay S. Patil, who has an industry experience of
nearly 3 decades. Lad family has a good reputation among the local
populace which helps KBSSKL in maintaining cordial relationship and
enables adequate cane availability for cane crushing. The top
management of KBSSKL is ably supported by second tier management,
including a qualified and experienced team of
engineers, chemists and finance professionals to manage day-to-day
operations.
* Partially integrated scale of operations resulting in de-risking
of core sugar business: KBSSKL, with an installed capacity of 7500
TCD and 19.70 MW is relatively an average size player in the sugar
industry. The partially integrated nature of facility of KBSSKL
enables diversification of revenue stream and improves KBSSKL's
ability to absorb the fluctuations in the prices of raw material
(sugarcane), finished goods and cyclicality, inherent to the sugar
industry.
* Location advantage with adequate cane availability: The partially
integrated sugar plant of KBSSKL is located in the sugarcane
cultivation area in village Kundal, Taluka Palus, Sangli,
Maharashtra. The registered sugar cultivation land around Sangli
covers area of about 14,000 hectares, translating into availability
of nearly 14 lakh MT of sugarcane (with an average yield of 100
MT/hectare). The major sugar factories in the vicinity include,
Rajarambapu Sahakari SSK Limited (7000 TCD) and Sonhira SSK Limited
(5000 TCD). The district is located adjacent to Andhali dam, water
from which is distributed to the agriculture lands and industries
in the region with the Krishna and Yerla rivers facilitating
adequate irrigation. The area has sugarcane with an average
recovery rate of close to 12.56% on account of favorable climatic
conditions. Further KBSSKL's promoters have good reputation among
local farmers and enjoy a cordial relationship, which facilitates
society's cane procurement.
* Healthy scale of operations; Albeit substantial decline in TOI in
11MFY24: The scale of operation of KBSSKL have reflected a growing
trend since FY19-23 due to growing demand by addition of new
customers. KBSSKL's total operating income increased by 18.59% on
Y-o-Y basis from INR581.39 crore in FY22 to INR689.49 crore in FY23
on account of increased demand for the products in both domestic
and export market. KBSSKL caters to the export demand through
middlemen. However, KBSSKL has booked sales of INR337 crores during
11MFY24 (Only including Sugar, molasses, bagasse and ENA sales) and
is estimated to report TOI of INR500 crore in FY24. The decrease in
the sales is due to ban on exports of sugar in FY24.
Liquidity: Poor
The liquidity position continues to remain poor marked by the gross
cash accruals of INR15.68 crores vis-à-vis repayment obligations
of INR30.85 crores in FY24 and free cash balance of INR6.42 crore
as on March 31, 2023. The average utilization of working capital
limits (fund based) stood at around 80% for the last twelve months
ended February 2024. Further, the current ratio and quick ratio
stood at 0.95 times and 0.27 times respectively as on March 31,
2023, vis-à-vis 1.09 times and 0.24 times respectively as on March
31, 2022. Cash flow from operations stood positive at INR98.06
crore as in FY23 (vis-à-vis INR92.18 crore in FY22).
KBSSKL was incorporated in the year 1997 by Late. Mr. Krantiagrani
Dr. G.D. Lad to undertake the manufacturing of sugar and related
products. The first crushing season of factory was conducted in the
year 2003 with an installed capacity of 2,500 tonnes of cane
crushed per day (TCD). The crushing capacity was subsequently
enhanced in stages, with the capacity as on February 28, 2023, at
7500 TCD. KBSSKL also commissioned a bagasse fired cogeneration
unit with an installed capacity of 19.70 megawatts (MW). The
partially integrated sugar plant of KBSSKL is located at Village
Kundal in Sangli, Maharashtra. Presently the society is spearheaded
by Mr. Arun Lad (Chairman), son of Mr. G.D. Bapu Lad and Mr.
Chandrakant Gavhane (Managing Director).
LEO CREATIONS: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Leo Creations Private Limited
G25-A, Flat No 1, LGF
Basement Vishwakarma Colony
South Delhi, New Delhi 110044
Insolvency Commencement Date: March 8, 2024
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: September 4, 2024
Insolvency professional: Anurag Goel
Interim Resolution
Professional: Anurag Goel
Plot No 6, First Floor
State Bank Nagar
Outer Ring Road
Paschim Vihar
New Delhi 110063
Email: agoel@caanurag.com
Email: cirp.leocreations@gmail.com
Last date for
submission of claims: March 22, 2024
MAD STUDIOS: ICRA Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
ICRA has kept the Long-Term ratings of Mad Studios Private Limited
in the 'Issuer Not Cooperating' category. The ratings are denoted
as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term 2.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Category
Long-term– 2.50 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term– 13.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Mad Studios 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.
Mad Studios Private Limited (MSPL) was incorporated on 30th January
2012 and is primarily engaged in the production of television
commercials. The company also in the recent past forayed into movie
production and end to end production services business that entails
leasing of equipment and related services to various directors,
film studios, production houses, etc. MSPL is a part of the Mad
Group. The flagship company of the Group is Mad Entertainment
Limited, promoted by Mr. Sunil Manchanda who has been in the Media
Industry for more than two decades. The Group has produced more
than 1000 television commercials for various famous brands till
date.
MINI HOTELS: ICRA Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
ICRA has kept the long-term and Short-Term ratings of Mini Hotels &
Projects 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/ 6.50 [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 Mini Hotels & Projects, 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.
Mini Hotels and Projects (MHP), is a partnership firm, promoted by
Mr. P. Ravi Kumar and Ms. P. Padma on June 30, 2014. The firm has
renovated a multi storied building into a Hotel and branded as
"Hotel Aira". The hotel is situated in Benz circle, Vijayawada, a
prime location that annually draws tourists and corporate visitors
from all over the country. The land and super structure is owned by
the partners and the super structure is being leased out to MHP.
The hotel comprises of 7 Standard rooms, 29 Executive rooms, 4
Royal Suite, a Banquet Hall (accommodating 110 people) and
conference room. The hotel also has 80 seat fine dining restaurant
and 25 seat coffee shop. The hotel has commenced commercial
operations in the month of August 2016.
OM THREADS: ICRA Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------
ICRA has kept the Long-Term ratings for the Bank Facilities of Om
Threads Limited in the 'Issuer Not Cooperating' category. The
ratings is denoted as "[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 2.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 11.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 0.35 [ICRA]B+ (Stable) ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Om Threads 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.
Om Threads Ltd (OTL) was incorporated in June 2013 by Mr. Sanjeev
Kumar along with other directors. The company is engaged in cotton
yarn spinning (count ranging from 10s to 40s) with manufacturing
facility located at Partan (Patiala, Punjab). The manufacturing
unit is equipped with 1,792 rotors (4 machines with 448 rotors
each) with installed capacity of 7 tons per day (2,555 MTPA). The
commercial production commenced from June 2014. The promoters of
the company also promote Satnam Oils Pvt. Ltd. which is into
cooking oil production from rice husk.
PADMAJA FARMS: ICRA Keeps B+ Debt Rating in Not Cooperating
-----------------------------------------------------------
ICRA has kept the Long-term rating for the bank facilities of
Padmaja Farms in the 'Issuer Not Cooperating' category. The rating
is denoted as "[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 3.05 [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 Padmaja Farms, 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.
Padmaja Farms operates poultry farms with a total capacity of
3,07,374 layer birds in Basapura and Bullapur village, Koppal
district, Karnataka. It is involved in the sale of table eggs.
PROFESSIONAL EDUC: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Professional
Educational Trust (PET) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Funded Interest 4 CRISIL D (Issuer Not
Term Loan Cooperating)
Long Term Loan 21 CRISIL D (Issuer Not
Cooperating)
Overdraft Facility 4 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 5 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with PET for
obtaining information through letter and email dated February 15,
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 PET, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PET
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PET continues to be 'CRISIL D Issuer Not Cooperating'.
PET, located in Palladam (Tamil Nadu), was established in 2009 by
Dr. C Subramaniam. The trust offers undergraduate and postgraduate
courses in engineering and management.
R.K. STEELS: ICRA Keeps B+ Debt Rating in Not Cooperating
---------------------------------------------------------
ICRA has kept the Long-Term ratings for the Bank Facilities of R.K.
Steels in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 55.00 [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 R.K. Steels, 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.
RKS began operations in 1983 as a partnership firm dealing in
trading of long products. Since then the firm has added several
products to its portfolio and is now engaged in trading of a
variety of long and flat steel products in and around Jaipur. Itis
managed by Mr. Kailash Chand Agarwal and Mr. Ramesh Chand Agarwal,
acting as equal partners.
REMEDY MEDICAL: ICRA Keeps B Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings for the Bank
facilities of Remedy Medical Services Pvt. Ltd. in the 'Issuer Not
Cooperating' category. The ratings are denoted as "[ICRA]B(Stable);
ISSUER NOT COOPERATING/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 3.30 [ICRA]B (Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Rating moved to the 'Issuer
Not Cooperating' category
Long Term- 8.20 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 0.50 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Remedy Medical Services Pvt. Ltd., ICRA has been trying to
seek information from the entity so as to monitor its performance
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Established in 1999, Remedy Medical Services Private Limited
(RMSPL) commenced operations as a diagnostic centre in
November2001. In 2004, it had set up a multi-specialty hospital in
Kolkata with a total capacity of 49 beds. The capacity was enhanced
in Q3FY2016 to 56 beds.
RENITE VITRIFIED: ICRA Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings of Renite
Vitrified LLP in the 'Issuer Not Cooperating' category. The ratings
are denoted as "[ICRA]B+(Stable) ISSUER NOT COOPERATING/[ICRA]A4
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 29.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan 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
Long Term/ 0.75 [ICRA]B+ (Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain
under issuer not cooperating
category
Short Term- 3.25 [ICRA]A4 ISSUER NOT
Non-Fund COOPERATING; Rating continues
Based-Others to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Renite Vitrified LLP, 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 February 2016, RVL manufactures nano, twin charged
vitrified and glazed vitrified floor and wall tiles. The firm's
manufacturing unit is situated at Wankaner (Taluka-Morbi,
District-Rajkot), Gujarat and has an installed capacity to
manufacture 73000 MT per annum of tiles. The firm is managed by 17
partners, most of whom have an extensive experience of around 10 to
15 years in the ceramic industry, by the virtue of being associated
with other ceramic companies. RVL started commercial production
from April 2017.
SANDEEP RICE: ICRA Keeps B Debt Rating in Not Cooperating
---------------------------------------------------------
ICRA has kept the Long-Term rating for the Bank Facilities of
Sandeep Rice Mills in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]B(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 10.00 [ICRA]B (Stable) ISSUER NOT
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 Sandeep Rice Mills, 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.
SRM was established in 2000 as a partnership firm by Mr. Amarjeet
Goyal, Mrs. Meena Devi and Mr. Jai Bhagwan Goyal. The firm is
engaged in milling and trading of basmati rice. The firm's milling
unit is based out of Cheek and has an installed capacity of 6
ton/hour for milling of rice.
SHRIVALLABH PITTIE: NCLT Admits Insolvency Plea Against Yarn Maker
------------------------------------------------------------------
The Economic Times of India reports that the National Company Law
Tribunal (NCLT) in Mumbai has admitted a corporate insolvency
resolution process (CIRP) against over a century-old textile maker
ShriVallabh Pittie (SVP) group's affiliate Shrivallabh Pittie
Industries Ltd in an application filed by the State Bank of India.
ET relates that the lender had approached the tribunal after the
company defaulted on its dues of about INR90 crore. The tribunal
has also appointed Mukesh Verma as resolution professional.
"The application made by the financial creditors is complete in all
respects as required by law," said the division bench of Justice VG
Bisht and a technical member Prabhat Kumar. "Therefore, the debt
and default stand established and there is no reason to deny the
admission of the petition. Moreover, the contention of the
corporate debtor (Shrivallabh Pittie Industries) that the present
petition is barred by limitation does not stand since the balance
sheets and various agreements between the parties produced before
us constitute an acknowledgement of the debt," said the bench in
its order of March 7.
Before the tribunal's order, the lender through its counsel Subir
Kumar argued that a total of INR193 crore towards working capital
facilities and INR275 crore towards term loan facilities was
granted to the company by the SBI consortium, out of which, INR126
crore towards working capital facilities and INR100 crore towards
the term loan was granted by the financial creditor (SBI) to the
corporate debtor.
While countering this, the company argued through its lawyers that
the account of the corporate debtor (Shrivallabh Pittie Industries)
had been wrongfully declared as NPA (non-performing asset) because
the financial creditor (SBI) had been accepting the instalments of
amounts from the respondent, even after the date of default, ET
relays.
Mumbai-headquartered Shrivallabh Pittie Industries manufactures
polyester, polyester & cotton blend, and 100% cotton yarn.
SITARAM INDIA: ICRA Keeps B+ Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has kept the Long-term and Short-term ratings for the bank
facilities of Sitaram India Limited in the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]B+(Stable)/[ICRA]A4;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 20.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 24.10 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Short Term- 0.93 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Sitaram India 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.
SIL was initially incorporated as "Swagat Synthetics Private
Limited (SSPL)" on September 24, 1987 by Shri Jagdish Prasad Nuwal
& Shri Anil Nuwal; subsequently, the company was converted into a
public limited company and name was changed to "Sitaram India
Limited" in 2015. SIL is engaged in manufacturing of fabrics,
starting from yarn twisting upto weaving and packing of the
finished product.
TIRUPATI AGRO: CARE Keeps B Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Tirupati
Agro Oils Private Limited (TAOPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.00 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 4,
2023, placed the rating(s) of TAOPL under the 'issuer
non-cooperating' category as TAOPL 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. TAOPL continues to be noncooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated November 20, 2023, November
30, 2023, December 10, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Stable
Tirupati Agro Oils Pvt Ltd (TAOPL) was promoted by Mr. Babubhai
Patel and Mr. Bharat Patel in 1996 as private limited company.
TAOPL is primarily engaged in manufacturing of Cotton Seeds Oil &
Other Kind Of Edible Oil. Furthermore, it also trades palm oil as
business activity. The company operates from manufacturing
facilities located at Kadi (Gujarat) with an installed capacity of
manufacturing 60 Tonnes per day as on March 31, 2019. TAOPL sell
its products under the brand name of 'Balaji Kapasia Oil'.
VENKATA SAI: CARE Reaffirms B+ Rating on INR20cr LT Loan
--------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
Sri Venkata Sai Trading Company (SVS), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 20.00 CARE B+; Stable; Reaffirmed
Facilities
Rationale and key rating drivers
Reaffirmation in the ratings assigned to bank facilities of SVS is
constrained by small scale of operations with thin profitability
margins in FY23 (FY refers to the period April 1 to March 31) and
11MFY24, low net worth base, leveraged capital structure and weak
debt coverage indicators, the constitution of the entity as a
proprietorship firm with an inherent risk of withdrawal of capital,
highly fragmented industry, exposed to price volatility and
seasonality of raw material. The rating however derives comfort
from an established track record and experienced proprietor,
comfortable operating cycle and support from promoter in the form
of unsecured loans as and when required.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Improvement in scale of operations to INR100 crore with PBILDT
margin at 3.00% on a sustained basis.
* Improvement in gearing to below 2.50x
Negative factors
* Decline in the scale of operations to below INR70.00 crore in
further years
* Elongation in the operating cycle of more than 50 days.
Analytical approach: Standalone
Outlook: Stable. CARE Ratings believes that the entity will
continue to benefit from the extensive experience of proprietor and
support in the form of unsecured loans.
Detailed description of the key rating drivers:
Key weaknesses
* Constitution of the entity being a proprietorship firm: Sri
Venkata Sai Trading Company being a proprietorship firm has the
inherent risk of the possibility of withdrawal of the capital.
During FY20-FY22, the firm has continuously withdrawn funds. In
FY23, there was no instance of capital withdrawal. However, the
inherent risk of withdrawal of capital given the nature of
constitution of the firm exists. Moreover, firms have restricted
access to external borrowings as credit worthiness of the partners
being the key factors affecting credit decision for the lenders.
* Small scale of operations with thin profitability margins and low
networth base: The scale of operations of the firm continued to
remain moderate at INR89.27 crore in FY23 as against INR98.43 crore
in FY22. The profitability margins of the firm continue to be thin
given the low value-addition nature of the operation. Operating
margin improved and stood at 2.87% in FY23 as against 1.91% in
FY22. However, due to an increase in interest expense as the firm's
reliance in working capital increased and higher depreciation led
by the addition of fixed assets, the PAT margin improved marginally
by 6 bps to 0.80% in FY23 as against 0.74% in FY22. During the
10MFY24, the company reported revenue of INR67.74 crore with PBILDT
and PAT levels stood at INR 2.12 crore and INR0.97 crores
respectively. Despite having long track record of operations, Net
worth base of the firm improved but remains small at INR3.43 crore
as on March 31, 2023 when compared to INR2.70 crore as on March 31,
2022.
* Leveraged capital structure and weak debt coverage indicators:
The overall gearing ratio of the firm improved from 4.01x as on
March 31, 2022 to 2.14x as on March 31, 2023, on account of
improved net worth against decreased working capital borrowings.
The debt profile of the firm consists of vehicle loans, unsecured
loans, and working capital borrowings. The total debt/GCA though
improved to 7.92x in FY23 (FY22: 12.56x) remained on a higher side.
The interest coverage ratio also deteriorated from 2.68x in FY22 to
1.91x in FY23 on account of increase in interest expenses albeit
higher PBILDT. As on February 2024, overall gearing ratio of the
company further deteriorated to 5.20x on account of high
utilisation of working capital limits in peak season and additional
unsecured loans received from promoter to meet short term
exigencies.
* Exposure to price volatility and seasonality of raw materials:
The firm is into the processing of chillies as the primary raw
material. The profitability of the firm is vulnerable to
fluctuations in raw material prices due to the commoditized nature
of the business and the limited level of value addition.
Furthermore, the agro-based commodities are seasonal and are
available readily only for a few months in a year requiring
adequate stocking levels of raw materials. The agro raw materials
as required by the firm are commodities and their prices are linked
to the demand-supply scenario, which in turn depends upon other
external factors like rainfall and international prices, thereby
exposing the firm profitability to changes in raw material prices.
* Presence in a highly fragmented and competitive agro-commodity
industry: Sri Venkata Sai Trading Company is in a competitive and
highly fragmented agro-commodity industry which has a presence of
large number of small and medium scale players. Further, the
overall value addition in the trading industry is very low which
translates into thin profitability. For exports, Firm also faces
intense competition from large established players in the industry,
who have global sourcing and customer base.
Key strengths
* Long track record of operations with the experienced proprietor:
The firm is established in the year 2004. Hence, the firm has a
long track record of operations of two decades in the industry. Mr.
Narasimha Rao Bathini who is the proprietor of the firm had an
experience of more than 3 decades in the business. During current
fiscal, promoter infused funds in the form of unsecured loans to
meet Working capital and repayment obligations which provide
comfort from credit perspective.
* Comfortable operating cycle: The raw materials are predominantly
agro commodities which are seasonal and are available readily only
for a few months in a year requiring adequate stocking levels of
raw materials. The firm procures raw materials from traders located
in Punjab, New Delhi, Andhra Pradesh, Rajasthan, Karnataka,
Telangana etc., which offers a credit period ranging
from 15-45 days. Furthermore, the firm extends credit period ranges
from 45-60 days to its clientele The operating cycle of the firm
improved to -26 days in FY23 from 24 days in FY22. Firm sales are
seasonal in nature and peak season is from February to July
resulting in increase in creditor days to 140 days. However, the
management had indicated that the payments were cleared
subsequently in Q1FY24.
Liquidity: Stretched
The liquidity profile of the firm is stretched marked by low GCA of
INR0.91 crores against debt repayment obligation of INR0.13 crores.
The cash and bank balances stood at INR0.90 crore as on March 31,
2023. The average utilisation of the working capital lines stood at
51.18% for the last twelve months ending Dec 31, 2023. Further,
promoter infused funds in the form of unsecured
loans for amount INR4.50 crores in current fiscal. The unutilised
working capital limits and unsecured loans from promoter provide
sufficient cushion to meet working capital requirements in the peak
season.
Telangana-based Sri Venkata Sai Trading was established in the year
2004 and promoted by Mr. Narsimha Bathina. The firm is engaged in
the processing (stem cut) and trading of chillies. The procurement
of chillies is from the local farmers. The company generated 100%
of its revenue from domestic sales out of which about 47% is from
three customers i.e., Sidhhartha Corporation Private Limited
(17.36%), Kunvarji Comtrade Retail Private Limited (15.59%) and
Venkatrama International LLP (14.00%).
VGP MARINE: Ind-Ra Moves BB+ Term Loan Rating to NonCooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
VGP Marine Kingdom Private Limited to the non-cooperating category
as per Ind Ra's policy on Issuer Non-Cooperation, following
non-submission of No Default Statement continuously for 3 months
despite continuous requests and follow-ups by the agency and also
IND-Ra's inability to validate timely debt servicing through other
sources it considers reliable. No Default Statement in the format
prescribed by SEBI is required to be shared by the issuer every
month as a confirmation that all financial obligations are being
serviced on time. Investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB+/Stable (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR213.35 mil. Term Loan due on December 31, 2027 migrated to
non-cooperating category with IND BB+/Stable (ISSUER NOT
COOPERATING) rating; and
-- INR156.25 mil. Working Capital Term Loan due on June 30, 2027
migrated to non-cooperating category with IND BB+/Stable
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
About the Company
VGPMKPL, which was incorporated in February 2012, began commercial
operations from April 2019. It operates an underwater aquarium in
Chennai, with a total built-up area of 75,098 square feet. VGPMKPL
is a part of the VGP group. The aquarium is divided into five zones
- rainforest, gorge, mangrove, coastal and the deep ocean - with
4,000 species of underwater creatures.
VILLUPURAM DISTRICT: ICRA Keeps B+ Debt Rating in Not Cooperating
-----------------------------------------------------------------
ICRA has kept the long-term rating of Villupuram District
Co-Operative Milk Producers Union Limited in the 'Issuer Not
Cooperating' category. The rating is denoted as [ICRA]B+(Stable);
ISSUER NOT COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 20.00 [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 Villupuram District Co-Operative Milk Producers Union 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.
Villupuram District Cooperative Milk Producers Union Ltd,
established as cooperative society in 1982 is involved in
processing and manufacturing of milk and its byproducts. The Union
sells products such as Milks, curds, milk powder, ghee, butter, ice
cream, sweets, among others under the brand name "Aavin"
predominantly in Tamil Nadu. It has a milk processing capacity of 1
lakh litres per day, ghee production capacity of 2 MT/day with
chilling capacity of 1.5 lakh litres at Villupuram and 1 lakh
liters at China Salem.
=================
I N D O N E S I A
=================
PAN BROTHERS: Fitch Cuts LT IDR to 'RD' on Missed Payment
---------------------------------------------------------
Fitch Ratings has downgraded Indonesia-based garment manufacturer
PT Pan Brothers Tbk's Long-Term Issuer Default Rating (IDR) to 'RD'
from 'C'. Fitch has also affirmed the rating on Pan Brothers'
USD171 million senior unsecured notes due December 2025, issued by
PB International B.V. at 'C' with a Recovery Rating of 'RR4'. At
the same time, Fitch Ratings Indonesia has downgraded Pan Brothers'
National Long-Term Rating to 'RD(idn)' from 'C(idn)'.
The rating action follows Pan Brothers' confirmation that it has
failed to cure the missed interest payment due 26 January 2024 on
its USD171 million of 7.625% senior unsecured notes due 2025 upon
expiration of its 30-day grace period.
'RD' National Ratings indicates an uncured payment default on a
bond, loan or other material financial obligation but the issuer
has not entered into bankruptcy filings, administration,
receivership, liquidation or other formal winding-up procedure and
has not otherwise ceased business.
KEY RATING DRIVERS
Bond Coupon Passed Cure Period: Pan Brothers' has not paid a USD6.5
million semi-annual coupon on its USD171 million notes due December
2025 within its grace period. It is in the process of requesting
bondholders to allow the release of the interest reserve account
(IRA) to fulfil this obligation. However, this requires 100%
approval, which may take time to complete.
In addition, the bond indenture stipulates that Pan Brothers must
ensure that there is the equivalent of one semi-annual coupon
amount in the IRA at all times. However, Pan Brothers intends to
request to replenish this amount in instalments given its tight
cash flow. This may not be agreeable to the bondholders
Liquidity Crisis: Pan Brothers' short-term liquidity is critically
weak. Fitch estimates that Pan Brothers had about USD28 million in
cash at end-2023, which included the USD6.5 million in restricted
cash in the IRA.
In addition, negotiations continue on the extension of its USD124
million syndicated loan that was due December 2023, as the company
does not have cash to repay the loan. A waiver has been granted by
the panel banks until 1 April 2024 for completion.
Ongoing Financial Obligations: The default could be prolonged given
that Pan Brothers has multiple financial obligations. The next
interest payment on the December 2025 bond is due in July 2024, and
there are also the negotiations over extending the syndicated loan
facility. Any re-rating would be based on the finalisation of these
agreements and the resultant capital structure.
The company also has high working-capital requirements and limited
access to new funding. It will have to rely on existing bank lines
and its limited cash balance to fund working capital needs.
Liquidity pressure is heightened, as Fitch expects working capital
to remain mildly negative and there are annual maintenance capex
requirements.
Declining Revenue: Fitch estimates revenue to have declined by
around 5% in 2023 on weaker customer demand, with a modest recovery
in 2024. Fitch forecasts the EBITDA margin will remain at around 8%
due to rising wage pressure.
ESG - Management Strategy: Improvement in its cash generation is
dependent on Pan Brothers' strategy development and implementation
in terms of working-capital and debt-maturity management. Its debt
repayment and refinancing capacity relies on its ability to attract
new bank lenders beyond its previous and current lenders, or
finding alternative sources of funding
DERIVATION SUMMARY
The rating reflects the failure to cure missed semi-annual coupon
payment within the grace period.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within the Rating Case for the Issuer:
- Revenue to drop by 5% in 2023. Low single-digit growth in 2024 as
demand recovers;
- Stable EBITDA margin of around 8% in 2023 and 2024 on the
company's cost-plus margin model;
- Capex of around USD4 million in 2023 in the absence of capacity
expansion;
- No dividend payments in 2023-2024.
RECOVERY ANALYSIS
The recovery analysis assumes that Pan Brothers would be
reorganised as a going-concern in bankruptcy rather than
liquidated. Fitch assumes a 10% administrative claim.
Going-Concern Approach
- The going-concern EBITDA estimate reflects Fitch's view of a
sustainable, post-reorganisation EBITDA level upon which Fitch
bases the enterprise valuation.
- Fitch estimates EBITDA at USD62 million to reflect industry
conditions and competitive dynamics.
- An enterprise value multiple of 5x EBITDA is applied to the
going-concern EBITDA to calculate a post-reorganisation enterprise
value. The multiple factors in Pan Brothers' customer quality and
stable demand. The multiple also applies a discount from the median
of around 8x for comparable Asian apparel peers, which are
generally larger than Pan Brothers.
- The going-concern enterprise value corresponds to a 'RR3'
Recovery Rating for the senior unsecured notes after adjusting for
administrative claims. Nevertheless, Fitch has rated the senior
unsecured bonds at 'C' with a Recovery Rating of 'RR4' because,
under its Country-Specific Treatment of Recovery Ratings Criteria,
Indonesia is classified under the Group D of countries in terms of
creditor friendliness, and instrument ratings of issuers with
assets located in this group are subject to a soft cap at the
issuer's IDR and a Recovery Rating of 'RR4'.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Fitch would reassess Pan Brothers' credit profile and its debt
issuance if a debt restructuring process is completed or there is
successful resolution to the current default.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Fitch may downgrade the ratings to 'D' if Pan Brothers has
entered into bankruptcy filings, administration, receivership,
liquidation or other formal winding-up procedures, or otherwise
ceased business.
LIQUIDITY AND DEBT STRUCTURE
Insufficient Liquidity: Pan Brothers had USD32 million of available
cash and no committed undrawn facilities at end-September 2023.
This is insufficient to cover short-term debt maturities, which
largely constitute a USD124 million syndicated loan that matured in
December 2023. Fitch also estimates free cash flow to have been
negative in 2023, driven by a weaker working capital position,
which will further drag on liquidity.
ISSUER PROFILE
Pan Brothers is one of Indonesia's largest garment manufacturers,
with Adidas and Uniqlo as its main customers. The company has a
production capacity of up to 117 million pieces a year, and exports
represented around 95% of total sales in 2022.
ESG CONSIDERATIONS
Pan Brothers has an ESG Relevance Score of '5' for Management
Strategy, due to the impact of its strategy development and
implementation in terms of working-capital management and funding.
This has a negative impact on the credit profile, and is highly
relevant to the rating, resulting in the weak liquidity position
and high refinancing risk that underpins the rating.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
PT Pan Brothers Tbk LT IDR RD Downgrade C
Natl LT RD(idn) Downgrade C(idn)
PB International
B.V.
senior
unsecured LT C Affirmed RR4 C
=====================
N E W Z E A L A N D
=====================
CLEACO CLEAN: Waterstone Insolvency Appointed as Receivers
----------------------------------------------------------
Damien Grant and Adam Botterill of Waterstone Insolvency on March
18, 2024, were appointed as receivers and managers of Cleaco Clean
Air Company Limited.
The receivers and managers may be reached at:
Waterstone Insolvency
16 Piermark Drive
Rosedale
Auckland 0632
HUNTN TRADINGS: Grant Bruce Reynolds Appointed as Liquidator
------------------------------------------------------------
Grant Bruce Reynolds of Reynolds & Associates Limited on March13,
2024, were appointed as liquidators of Huntn Tradings Limited.
The liquidators may be reached at:
Reynolds & Associates Limited
PO Box 259059
Botany 2163
Auckland
KO AROHA: Creditors' Proofs of Debt Due on April 12
---------------------------------------------------
Creditors of Ko Aroha Tuatahi Daycare Centre Incorporated are
required to file their proofs of debt by April 12, 2024, to be
included in the company's dividend distribution.
The High Court at Wellington appointed Kristal Pihama and Leon
Francis Bowker of KPMG as liquidators on March 12, 2024.
LAKELAND QUEEN: Paddle Boat Business Goes Into Liquidation
----------------------------------------------------------
Radio New Zealand reports that iconic Rotorua tourism paddle boat
business Lakeland Queen has gone into liquidation.
It comes after the company ceased trading due to Covid-19 three
years ago, and after its owner opposed a controversial direction to
build, gift to iwi, then lease a new jetty in order to resume
operations at Rotorua's Lakefront.
According to RNZ, the vessel hosted tourist cruises on Lake Rotorua
for more than three decades until pandemic border closures forced
it into hibernation in 2021, with 15 staff made redundant.
It had since been drydocked on iwi-gifted Rotorua Lakes Council
land but vessel owner Terry Hammond was ordered in January to
remove it by mid-July after it was described as "an eyesore".
The Lakeland Queen (2006) company was publicly notified as being in
liquidation on March 11, with two accountants from BDO appointed as
liquidators and creditors given until April 22 to make a claim, RNZ
discloses.
Four days later, the Liquidators' First Report to Creditors and
Shareholders was published.
It stated the company had been operating the paddle boat since
2006, providing catered cruises of Lake Rotorua for up to 210
seated guests.
RNZ says the liquidation followed unsuccessful efforts to resolve
issues with the site the company operated from and concerns it
disturbed the lakebed, so it could resume operations, the report
stated.
"In the absence of funding, the directors and shareholders resolved
that the company be placed into liquidation."
The report listed several secured and unsecured creditors including
Inland Revenue, Bell Tea and Coffee Company Limited, Fujifilm
Business Innovation NZ and Watchdog Security Group.
The report's statement of affairs listed debts totalling just over
NZD520,000 and assets valued at about NZD184,000 - but the values
of some assets were withheld, RNZ relays.
"It is too early to reliably estimate what funds, if any, will be
available for preferential and unsecured creditors."
Options the liquidators would explore included selling the paddle
boat, something Hammond had previously tried, the report, as cited
by RNZ, stated.
No completion date was given, RNZ adds.
MCMLXX LIMITED: BDO Appointed as Receivers and Managers
-------------------------------------------------------
Colin Gower and Diana Matchett of BDO Christchurch on March 18,
2024, were appointed as receivers and managers of MCMLXX Limited.
The receivers and managers may be reached at:
Colin Gower
BDO Christchurch
Awly Building
Level 4, 287–293 Durham Street North
Christchurch 8013
SELAH HOMES: Creditors' Proofs of Debt Due on April 13
------------------------------------------------------
Creditors of Selah Homes Limited are required to file their proofs
of debt by April 13, 2024, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on March 13, 2024.
The company's liquidators are:
Adam Botterill
Damien Grant
Waterstone Insolvency
PO Box 352
Auckland 1140
=================
S I N G A P O R E
=================
AWE CHINA: Creditors' Proofs of Debt Due on April 22
----------------------------------------------------
Creditors of Awe China Pte. Ltd. and Awe (Anambas) Pte. Ltd. are
required to file their proofs of debt by April 22, 2024, to be
included in the companies' dividend distribution.
The companies commenced wind-up proceedings on March 15, 2024.
The companies' liquidators are:
Toh Ai Ling
Chan Kwong Shing, Adrian
Tan Yen Chiaw
c/o 12 Marina View #15-01
Asia Square Tower 2
Singapore 018961
EVCO: Placed Under Insolvent Liquidation, Owes Almost SGD50MM
-------------------------------------------------------------
The Straits Times reports that electric van leasing company EVCo
has been put under insolvent liquidation, with debts of almost
SGD50 million.
EVCo, also known as Strides DST, is 60 per cent owned by transport
operator SMRT's business arm Strides Holdings and 40 per cent by
Dishangtie Green Technology (Hong Kong). The two-year-old firm was
incorporated in March 2022 with a paid-up capital of SGD10
million.
According to ST, the company was put under provisional liquidation
not long after its former chief executive officer Fuji Foo and
chief financial officer Janice Low were arrested in connection with
a police investigation in late 2023.
A list of creditors obtained by The Straits Times showed that as at
Feb. 28, there were 28 creditors with SGD49.4 million due to them.
It is not immediately clear if more creditors had come forward
since Feb. 28.
The list showed that the biggest amount is due to OCBC Bank, which
is owed SGD47.6 million.
SMRT itself is owed SGD38,675, while various Strides-related units
are owed a combined amount of around SGD590,000.
A meeting of creditors was held on March 18, ST notes.
Baker Tilly has been appointed liquidator, ST discloses. Mr.
Timothy Reid, a principal at Baker Tilly, said the company is in
insolvent liquidation – meaning whatever remaining cash and
assets will not be enough to repay all its debts.
ST relates that sources said assets include a fleet of China-made
electric vans, which would have devalued substantially on the back
of sliding certificate of entitlement prices. Electric vehicles
left unused for a prolonged period are also likely to suffer from
battery degradation.
Mr. Reid added that all the creditors so far are unsecured
creditors, which implies that there is no defined priority as to
who gets repaid first, ST relays.
While it is not common for banks to give unsecured loans,
especially to start-ups, The Straits Times understands that some do
so based on the standing of a parent company or majority
shareholder; in this case, Temasek-owned SMRT.
As Strides DST is a private limited company, the liability of its
shareholders is limited to the amount of capital they contributed.
When contacted, SMRT would only say that EVCo had gone into
voluntary liquidation and an independent liquidator has been
appointed.
One creditor, who spoke on condition of anonymity, said: "I'm
speechless. But I'll say that this is down to poor management, poor
execution and exploiting loopholes." ST relays.
In October 2022, the company announced its target to have a fleet
of 2,000 electric vans for a vehicle-sharing programme, which
allows SMEs different leasing packages, including a pay-per-use
option.
Half a year after it was set up, EVCo said it would have 550 vans
ready from January 2023.
In March 2023, the company registered 197 Chinese-made Shineray
electric vans. EVCo is the only company to offer this brand of
vehicle in Singapore. According to the Land Transport Authority,
there were 218 Shineray vehicles registered in 2023.
QINGJIAN REALTY: Commences Wind-Up Proceedings
----------------------------------------------
Members of Qingjian Realty (Choa Chu Kang) Pte Ltd on March 11,
2024, passed a resolution to voluntarily wind up the company's
operations.
The company's liquidators are:
Ms. Koh Geok Hoon
Ms. Koh Ee Koon
380 Jalan Besar
#06-06, ARC 380
Singapore 209000
RASAWULAN MARITIME: Commences Wind-Up Proceedings
-------------------------------------------------
Members of Rasawulan Maritime Pte. Ltd., Gandari Navigation Pte
Ltd, and Dewi Sri Maritime Pte Ltd on Feb. 27, 2024, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidator is:
Jason Aleksander Kardachi
Kroll Pte. Limited
10 Collyer Quay
#05-04/05 Ocean Financial Centre
Singapore (049315)
TANK BUILT: Court to Hear Wind-Up Petition on April 5
-----------------------------------------------------
A petition to wind up the operations of Tank Built Pte Ltd will be
heard before the High Court of Singapore on April 5, 2024, at 10:00
a.m.
Koh Meng Tee (Xu Mingzhi) filed the petition against the company on
March 11, 2024.
The Petitioner's solicitors are:
Kim & Co.
10 Anson Road
#24-16A International Plaza
Singapore 079903
WA SUPERAPP: Commences Wind-Up Proceedings
------------------------------------------
Members of WA Superapp Technology Pte Ltd, on March 15, 2024,
passed a resolution to voluntarily wind up the company's
operations.
The company's liquidators are:
Mr. Abuthahir Abdul Gafoor
Ms. Yessica Budiman
AAG Corporate Advisory
144 Robinson Road
#14-02 Robinson Square
Singapore 068908
=====================
S O U T H K O R E A
=====================
SK INNOVATION: S&P Downgrades ICR to 'BB+', Outlook Stable
----------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Korea-based company SK Innovation Co. Ltd.'s (SKI) and its wholly
owned subsidiary SK Geo Centric Co. Ltd. (SKGC) to 'BB+' from
'BBB-'.
The stable rating outlook is based on S&P's assumption that SKI's
debt leverage peaked in 2023, and will gradually decline over the
next 24 months. SKI is exploring ways to lower its leverage faster.
However, those are unlikely to materialize very quickly and are
subject to market conditions.
S&P said, "SKI's debt leverage will likely stay higher for longer
than we anticipated. We believe the company's debt leverage will
not fall below 4x before the end of 2025. This is owing to a recent
slowdown in demand for EV batteries, and higher capex in 2024. We
forecast the adjusted debt-to-EBITDA ratio will be 5.2x in 2024 and
4.3x in 2025, with adjusted debt reaching Korean won (KRW) 28
trillion by 2025 from KRW23 trillion in 2023 and KRW19 trillion in
2022. We have therefore revised our assessment of SKI's financial
risk profile to aggressive from significant.
"SKI's adjusted debt-to-EBITDA ratio rose to 5.7x in 2023, compared
with 3.3x in 2022. This was much higher than our expectation due to
weaker refining and EV battery earnings, coupled with higher
investment spending.
"EV battery revenue and margins to remain weak for the next 12-24
months. We forecast SKI's EV battery business (excluding advanced
manufacturing production credit [AMPC]) will remain loss-making in
2024-2025, compared with our previous expectation of a break-even
by 2025. In particular, we expect limited improvement in underlying
profitability in 2024, driven by a slowdown in demand for EV
batteries since the second half of 2023 and lower metal prices. The
company expects a significant recovery in EV battery volumes in the
second half of 2024. Nevertheless, we see risks to such a recovery
within 2024."
Meanwhile, SKI's refining and chemical business will likely see
some profit improvement in 2024, considering strong refining
margins in the first quarter of 2024 and additional profit
contribution from an exploration and production (E&P) project in
China.
Capex will stay substantially higher than operating cash flow over
the next two years. SKI is aggressively investing in EV battery
capacity expansion, with a target to increase EV battery capacity
to more than 220 gigawatt-hours (GWh) in 2025, from 88GWh in 2023.
S&P said, "The company's capex guidance of KRW9 trillion for 2024
is also higher than what we had anticipated last year. A further
increase in debt is therefore likely in 2024. We forecast SKI's
capex will be KRW9 trillion in 2024 and KRW6 trillion in 2025.
These are much higher than annual operating cash flow of KRW3.5
trillion-KRW4 trillion during the same period."
The capex burden will likely ease materially after 2026 as the
ongoing EV battery projects would be mostly complete. That said,
significant EV business expansion beyond our expectation could
require incremental investments. As such, gradual deleveraging will
be possible only after 2026, in S&P's base case scenario.
SKI's is considering some deleveraging options, but these have
risks. Management has historically shown a commitment to manage its
credit metrics. This includes a common equity issuance of KRW1.1
trillion in September 2023. However, SKI's options to rapidly
reduce leverage will take time to complete and are subject to
market conditions and execution risks.
S&P said, "We equalize our ratings on SKGC with that on its parent.
This reflects our view that SKGC is a core subsidiary, given its
integral role in SKI's oil and gas value chain, strong management
ties, and closely aligned reputation with the parent group. Our
approach also reflects our view that the trend of SKGC's overall
credit metrics will largely track those of SKI, as seen in the past
several years."
SKGC is a wholly owned subsidiary of SKI, and its petrochemical
plant is fully integrated into the parent's oil refinery complex in
Ulsan, Korea.
S&P said, "We continue to assess SKGC's stand-alone credit profile
at 'bb+'. The company aims to diversify its business from commodity
chemicals to specialty products and recycling. Operating conditions
in the petrochemical industry are likely to remain challenging in
2024. However, we expect SKGC's debt-to-EBITDA ratio to stay below
4x in 2024-2025 owing to the company's low capex burden.
"The stable outlook is based on our assumption that SKI's debt
leverage peaked in 2023, and will gradually decline over the next
24 months. The company is working on options that could lower its
debt leverage faster. However, these are unlikely to come to
fruition very quickly and would be subject to market conditions."
The rating on SKGC will move in tandem with that on SKI, reflecting
SKGC's status as a core subsidiary of the parent.
S&P said, "We could lower the rating on SKI if the company's ratio
of adjusted debt to EBITDA stays above 5x in 2025, with limited
prospect of recovery. Such a scenario could materialize if the
adjusted debt increases materially faster than our expectations,
due to more aggressive investments or weaker operating cash flows.
"We could also lower the rating on SKI if the company's
competitiveness in the EV battery business weakens due to a
concentrated customer base or slower improvement in margins.
"We may raise the rating on SKI if the company's adjusted
debt-to-EBITDA ratio recovers to below 4.0x on a sustainable basis.
This may result from a significant reduction of debt through asset
disposals, strong profitability and operating cash flow from key
business lines, or cuts in capital investments and shareholder
returns."
*********
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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