/raid1/www/Hosts/bankrupt/TCRAP_Public/240513.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, May 13, 2024, Vol. 27, No. 96
Headlines
A U S T R A L I A
AIR CON: First Creditors' Meeting Set for May 15
ARMCO BARRIERS: First Creditors' Meeting Set for May 16
BONZA AVIATION: Stays Grounded After Lending Negotiation Failure
CAMATIC PTY: Collapses Into Administration; Owes AUD29MM
JHR JOBS: First Creditors' Meeting Set for May 16
MESOBLAST LTD: G to the Fourth et al. Report Equity Stake
MESOBLAST LTD: Jane Bell Replaces Joseph Swedish as Chair
NEW WILKIE: Great Elm Capital Marks $4.9MM Loan at 34%
PINK PLANT: First Creditors' Meeting Set for May 16
RESIMAC TRIOMPHE 2024-1: S&P Assigns B(sf) Rating on Cl. F Notes
SUNSHINE INN: Vegetarian Restaurant and Bar to Shut Up Shop
TOTAL ESSENTIAL: First Creditors' Meeting Set for May 17
C H I N A
R&F PROPERTIES: Offloads Luxury London Towers for HKD1
SPACECYCLE: Fraud May Be Suspected After Closure, Lawyer Says
I N D I A
ABDOS LAMITUBES: CRISIL Keeps B+ Debt Ratings in Not Cooperating
ACCORD UDYOG: CRISIL Keeps D Debt Rating in Not Cooperating
AMBICO EXPORTS: CRISIL Keeps D Debt Ratings in Not Cooperating
DEEPAK YADAV: CRISIL Keeps B Debt Rating in Not Cooperating
DHIREN DIAMONDS: CRISIL Keeps B+ Debt Rating in Not Cooperating
DHOOT INFRASTRUCTURE: CRISIL Keeps B+ Ratings in Not Cooperating
DUFLON INDUSTRIES: CRISIL Keeps D Debt Ratings in Not Cooperating
GANESH INDUSTRIES: CRISIL Keeps B Debt Ratings in Not Cooperating
GVR ASHOKA: Ind-Ra Hikes Term Loan Rating to B
HAREKRISHNA COTTON: CRISIL Keeps B+ Ratings in Not Cooperating
INDIA STEEL: Bankruptcy Court Admits Stecol's Insolvency Plea
KANTE WAKED: CRISIL Reaffirms D Rating on INR227.35cr Term Loan
M. M. INTERNATIONAL: CRISIL Reaffirms D Rating on INR15.5cr Loan
MANGLAM PAPER: Ind-Ra Cuts Bank Loan Rating to D
NEXUS ELECTRO: CRISIL Keeps D Debt Ratings in Not Cooperating
OM SWAROOP: Ind-Ra Assigns B+ Bank Loan Rating, Outlook Stable
OPAL LUXURY: CRISIL Keeps D Debt Ratings in Not Cooperating
ORIGO COMMODITIES: Ind-Ra Withdraws BB LT Issuer Rating
PARAG AGRO: Ind-Ra Affirms BB+ Bank Loan Rating, Outlook Stable
PLAZA COMPUTERS: CRISIL Keeps D Debt Rating in Not Cooperating
SHALAK EATABLE: CRISIL Keeps D Debt Ratings in Not Cooperating
SHIV CORPORATION: CRISIL Keeps D Debt Ratings in Not Cooperating
STAR CARS: CRISIL Keeps D Debt Ratings in Not Cooperating
T T LIMITED: Ind-Ra Affirms BB+ Rating, Outlook Stable
TEXLA PLASTICS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
THIRUCHY STEELS: CRISIL Keeps B+ Debt Rating in Not Cooperating
THREE SEASONS: CRISIL Keeps D Debt Ratings in Not Cooperating
TRAVANCORE EARTH: CRISIL Keeps D Debt Rating in Not Cooperating
TRIMURTI FOODTECH: CRISIL Keeps D Debt Ratings in Not Cooperating
VIGHNAHAR SAHAKARI: Ind-Ra Assigns BB+ Loan Rating, Outlook Stable
WARDHMAN TAKNIKI: CRISIL Keeps B Debt Ratings in Not Cooperating
N E W Z E A L A N D
AAA RETROFIT: Creditors' Proofs of Debt Due on June 6
ASAD HORTICULTURE: Court to Hear Wind-Up Petition on May 20
MACKENZIE COUNTRY: In Liquidation; Claims Deadline Set May 31
PONE CONTRACTORS: Khov Jones Appointed as Receivers
TRANZKELL 2000: Creditors' Proofs of Debt Due on June 13
VANDERLAY INDUSTRIES: Court to Hear Wind-Up Petition on May 24
P A K I S T A N
PAKISTAN: Downside Risks Remain Exceptionally High, Says IMF
S I N G A P O R E
ASSET MANAGEMENT: Creditors' Proofs of Debt Due on June 10
HAVE FUN: Placed in Provisional Liquidation
NOBLE DRILLING: Creditors' Proofs of Debt Due on June 10
QUANFA GROUP: Court to Hear Wind-Up Petition on May 24
QUINTESSENTIAL FOODS: Court Enters Wind-Up Order
X X X X X X X X
AIR VANUATU: Placed Into Voluntary Liquidation
- - - - -
=================
A U S T R A L I A
=================
AIR CON: First Creditors' Meeting Set for May 15
------------------------------------------------
A first meeting of the creditors in the proceedings of Air Con
Constructions Pty Limited will be held on May 15, 2024 at 2:00 p.m.
via Zoom Virtual Conference Facility
David Hurst and Grahame Ward of Mackay Goodwin were appointed as
administrators of the company on May 5, 2024.
ARMCO BARRIERS: First Creditors' Meeting Set for May 16
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Armco
Barriers Pty. Ltd. will be held on May 16, 2024 at 11:00 a.m. by
virtual technology.
Rachel Burdett of Cor Cordis was appointed as administrator of the
company on May 6, 2024.
BONZA AVIATION: Stays Grounded After Lending Negotiation Failure
----------------------------------------------------------------
News.com.au reports that budget airline Bonza has again failed to
get off the ground, as negotiations with aircraft lenders have
stalled.
In a statement, Bonza announced all flights from May 8 to 14 would
be cancelled and staff would remain stood down in the period,
news.com.au relates. This comes after Bonza administrators Hall
Chadwick announced on May 10 that it had stood down staff and
cancelled flights up until May 14 following the grounding of its
aircraft.
"(Bonza's) administrators have been in discussions with the lessors
of the aircraft in order to determine whether the grounded aircraft
could become operational in the short term," the statement, as
cited by news.com.au, reads.
"The administrators have regretfully been advised that the lessors
will continue to enforce their rights under the termination notices
and, subject to their own requirements and arrangements, seek to
reposition the fleet elsewhere.
"This is a difficult situation, and the administrators recognise
the significant impact on all stakeholders including the Company's
employees and customers."
Bonza does not own any aircraft, instead leasing them. These
agreements were terminated on April 30 after the airline had
defaulted on its loans the previous month, news.com.au notes.
According to news.com.au, Bonza said it would try to resume
operations despite the loss of its fleet.
The ABC reported about 150 staff had been stood down without pay,
with many left "screaming and crying" at the news they wouldn't be
compensated for their work in April, news.com.au relays.
A court hearing on May 7 revealed that almost 60,000 customers had
been left without compensation for ticket purchases by the
airline.
"The administrators confirm that they are not in a position to
process or issue refunds on behalf of (Bonza) at this time," May
7's statement reads.
"Customers who have had their flights cancelled should contact
their financial institution to discuss available options."
Abount Bonza
Sunshine Coast-based Bonza was unveiled in October 2021 and its
first flight took off in January 2023. It operates Boeing
737-Max-8 planes and is backed by 777 Partners, an investment group
based in Miami, Florida. It originally flew 27 routes to 17
destinations but started cutting services during its first six
months.
Richard Albarran, Kathleen Vouris, Brent Kijurina and Cameron Shaw
of Hall Chadwick were appointed Administrators of the Company on
April 30, 2024.
CAMATIC PTY: Collapses Into Administration; Owes AUD29MM
--------------------------------------------------------
News.com.au reports that an Australian manufacturer, with sites in
the US and Malaysia, has collapsed owing a staggering AUD29
million.
News.com.au relates that the 60-year-old company, called Camatic
Pty Ltd and trading as Camatic Seating, designed, manufactured and
installed seating in stadiums, arenas, cinemas, theatres,
educational institutions and transit areas around the world.
On its website, the firm boasted it had created seating for "some
of the biggest stadiums and arenas in the US" which are home to
American football teams, as well as the Australian Open tennis
tournament.
But the company went bust at the start of April when it was placed
into voluntary administration with Jason Stone and Glenn Franklin
from insolvency firm PFK appointed to oversee it, according to
news.com.au.
The company employed approximately 77 employees and "numerous"
staff were terminated or stood down by the administrators as wages
were unable to be paid, the administrator's report, as cited by
news.com.au, noted.
A letter leaked to news.com.au showed a request from administrators
for employees to agree to be stood down without pay from April 10
to May 3.
"The reason for the stand down is that the majority of the
company's operations have been put on hold for the time being
resulting in stoppage of work where certain employees (including
yourself) can no longer be usefully employed," the letter read.
However, with the company likely to fall into liquidation those
employees are set to permanently lose their jobs, news.com.au
states.
Employees are owed approximately AUD3.6 million including unpaid
wages, superannuation, annual leave, long service leave and
redundancy pay, according to the administrator's report.
It also revealed that the company had racked up debts worth AUD29.4
million, news.com.au discloses.
The biggest creditor is HSBC, which is owed AUD11.2 million from
loans, a mortgage, credit card and bank overdraft.
Outstanding debt for unsecured creditors totalled AUD14.9 million
including trades, the report said, news.com.au discloses.
The ATO has lodged a debt notice worth almost AUD250,000, while the
State Revenue Office of Victoria notified administrators they are
owed AUD331,000.
At the time of the company's failure, there were 123 projects both
locally and internationally that were left in limbo, although some
were completed during the administration period, the report noted.
A number of parties had also laid claims to stock within the
manufacturing plant worth between AUD748 and AUD114,000 with the
likes of 27 steel pallets, plastic beads, a printer, fibreboard and
a chemical outlined in the report.
According to news.com.au, Mr. Franklin said the company's failure
was a result of difficult trading during the Covid-19 lockdown
period, especially in relation to freight as a global exporter,
driving a declining financial position.
He added the company was further stretched by opening a
manufacturing plant in Malaysia during the Covid-19 lockdown
period, without the required opportunity for management to travel
and supervise the set up.
Apart from the Australian manufacturing site which was located in
Melbourne, it also operated Camatic US which was responsible for
projects in the region.
There was also Camatic Malaysia, a manufacturing facility which
serviced both Australia and the US, the administrator's report
noted.
The business has been advertised for sale with two offers received,
the administrators report revealed, although negotiations were
ongoing.
Mr. Franklin has recommended the company be placed into liquidation
with a meeting for creditors scheduled on May 10, news.com.au
adds.
JHR JOBS: First Creditors' Meeting Set for May 16
-------------------------------------------------
A first meeting of the creditors in the proceedings of JHR Jobs Co
Pty Ltd will be held on May 16, 2024 at 10:00 a.m. at the offices
of B&T Advisory at Level 19, 144 Edward Street in Brisbane.
Travis Pullen of B&T Advisory was appointed as administrator of the
company on May 6, 2024.
MESOBLAST LTD: G to the Fourth et al. Report Equity Stake
---------------------------------------------------------
Gregory George, James George, Grant George and G to the Fourth
Investments, LLC disclosed in a Schedule 13G/A Report filed with
the U.S. Securities and Exchange Commission that as of April 30,
2024, they beneficially owned ordinary shares of Mesoblast Limited.
The Shares beneficially owned are as follows:
Reporting Person Shares Owned Percent of Class
---------------- ------------ ----------------
Gregory George 173,679,966 15.27%
James George 4,000,000 0.35%
Grant George 5,000,000 0.44%
G to the Fourth
Investments, LLC 50,924,869 4.48%
The ownership represents beneficial ownership of ordinary shares as
represented by American Depositary Receipts by the Reporting
Persons as of May 1, 2024, based upon 1,137,611,751 ordinary shares
of the issuer outstanding as of May 1, 2024.
Gregory George is the sole beneficial owner of 113,755,097 ordinary
shares, which include 6,830,602 ordinary shares underlying warrants
and 40,719,700 ordinary shares held in the form of American
Depositary Receipts
Gregory George is a manager of G to the Fourth Investments, LLC and
has discretionary authority to vote and dispose of 50,924,869
ordinary shares held by G to the Fourth Investments, LLC. Gregory
George may be deemed to be the beneficial owner of these shares.
Gregory George has discretionary authority to vote and dispose of
4,000,000 ordinary shares held in the form of ADRs by his son James
George. Gregory George may be deemed to be the beneficial owner of
these shares.
Gregory George has discretionary authority to vote and dispose of
5,000,000 ordinary shares held in the form of ADRs by his son Grant
George. Gregory George may be deemed to be the beneficial owner of
these shares.
George Gregory may be reached at:
371 Channelside Walkway
PH 1702
Tampa, FL 33602
A full-text copy of the Report is available at
https://tinyurl.com/2tfzcy8y
About Mesoblast
Headquartered in Melbourne, Australia, Mesoblast Limited –
https://www.mesoblast.com/ -- is a developer of allogeneic
(off-the-shelf) cellular medicines for the treatment of severe and
life-threatening inflammatory conditions. The Company has
leveraged its proprietary mesenchymal lineage cell therapy
technology platform to establish a broad portfolio of late-stage
product candidates which respond to severe inflammation by
releasing anti-inflammatory factors that counter and modulate
multiple effector arms of the immune system, resulting in
significant reduction of the damaging inflammatory process.
Mesoblast has locations in Australia, the United States and
Singapore and is listed on the Australian Securities Exchange (MSB)
and on the Nasdaq (MESO).
As of June 30, 2023, the Company had $669.41 million in total
assets, $167.58 million in total liabilities, an $501.84 million in
total equity.
PricewaterhouseCoopers in Melbourne, Australia, the Company's
auditors since 2008, issued a "going concern" qualification in its
report dated Aug. 31, 2023, citing that the Company has net cash
outflows from operating activities and is dependent upon
implementing cost containment and deferment strategies and
obtaining additional funding from one or more sources to meet the
Company's projected expenditure consistent with its business
strategy, and has stated that these events or conditions result in
material uncertainty that may cast significant doubt (or raise
substantial doubt as contemplated by PCAOB standards) on the
Company's ability to continue as a going concern.
MESOBLAST LTD: Jane Bell Replaces Joseph Swedish as Chair
---------------------------------------------------------
Mesoblast Limited disclosed that Joseph R. Swedish has chosen to
transition from Chair and will remain on the Board until completion
of his term at the Annual General Meeting later this year. The
Board has unanimously appointed Jane Bell AM to the role of
non-executive Chair. The Board acknowledges, and thanks Mr. Swedish
for his dedicated service as Chair of Mesoblast having seen the
company emerge from a challenging period to the point of potential
first product commercialization.
Mr. Swedish said, "It has been an honor serving on the Board and
witnessing first-hand the tremendous dedication and commitment it
takes to bring a cutting-edge product to market. I feel we are on
the verge of achieving that goal and I am confident that the Board,
working with Silviu and the management team, will achieve this
milestone and capitalize on the building blocks established to
date".
Ms. Bell said, "Mesoblast is a very exciting company. I am honored
to have the opportunity to step up at this important juncture in
order to maximize shareholder value as the Company seeks to
commercialize its valuable product pipeline," Ms. Bell said.
Mesoblast Chief Executive Dr. Silviu Itescu said: "I am grateful
for Joe's leadership as Chair these past years. I welcome Jane, who
brings to the Board deep finance, commercial and healthcare skills
and look forward to working together to bring our important
products to patients."
Ms. Bell is an experienced leader with a corporate career spanning
chair, director and executive roles as a banking and finance lawyer
with 30 years of corporate finance expertise focusing on
international investment transactions in the United States, Canada,
Australia and the United Kingdom, including funds management,
mergers, acquisitions, and divestments. She has served as a
non-executive Director in a diverse range of highly regulated
sectors including delivery of healthcare, life sciences, medical
research, and funds management.
As Mesoblast Chair, Ms. Bell will step down as Chair of the Audit
and Risk Committee and will continue as a member of this committee.
Mr. Philip Facchina has been appointed by the Board as Chair of the
Audit and Risk Committee in her place.
About Mesoblast
Headquartered in Melbourne, Australia, Mesoblast Limited –
https://www.mesoblast.com/ -- is a developer of allogeneic
(off-the-shelf) cellular medicines for the treatment of severe and
life-threatening inflammatory conditions. The Company has
leveraged its proprietary mesenchymal lineage cell therapy
technology platform to establish a broad portfolio of late-stage
product candidates which respond to severe inflammation by
releasing anti-inflammatory factors that counter and modulate
multiple effector arms of the immune system, resulting in
significant reduction of the damaging inflammatory process.
Mesoblast has locations in Australia, the United States and
Singapore and is listed on the Australian Securities Exchange (MSB)
and on the Nasdaq (MESO).
As of June 30, 2023, the Company had $669.41 million in total
assets, $167.58 million in total liabilities, an $501.84 million in
total equity.
PricewaterhouseCoopers in Melbourne, Australia, the Company's
auditors since 2008, issued a "going concern" qualification in its
report dated Aug. 31, 2023, citing that the Company has net cash
outflows from operating activities and is dependent upon
implementing cost containment and deferment strategies and
obtaining additional funding from one or more sources to meet the
Company's projected expenditure consistent with its business
strategy, and has stated that these events or conditions result in
material uncertainty that may cast significant doubt (or raise
substantial doubt as contemplated by PCAOB standards) on the
Company's ability to continue as a going concern.
NEW WILKIE: Great Elm Capital Marks $4.9MM Loan at 34%
------------------------------------------------------
Great Elm Capital Corp. has marked its $4,935,000 loan extended to
New Wilkie Energy Pty Limited to market at $3,240,000 or 66% of the
outstanding amount, as of March 31, 2024, according to a disclosure
contained in Great Elm's Form 10-Q for the quarterly period ended
March 31, 2024, filed with the U.S. Securities and Exchange
Commission.
Great Elm is a participant in a 1st Lien, Secured Loan to New
Wilkie Energy. The loan matures on April 6, 2026.
Great Elm Capital Corp. was formed on April 22, 2016, as a Maryland
corporation. The Company is structured as an externally managed,
non-diversified closed-end management investment company. The
Company elected to be regulated as a business development company
under the Investment Company Act of 1940, as amended. The Company
is managed by Great Elm Capital Management, Inc., a subsidiary of
Great Elm Group, Inc.
Great Elm's fiscal year ends December 31, 2023.
Great Elm is led by Matt Kaplan, CEO; and Keri A. Davis, CFO. The
Company can be reached through:
Great Elm Capital Corp.
3801 PGA Boulevard, Suite 603,
Palm Beach Gardens, FL 33410
Tel: (617) 375-3006
New Wilkie Energy Pty Ltd (NWE) is an Australian owned company who
recently acquired the Wilkie Creek mine.
PINK PLANT: First Creditors' Meeting Set for May 16
---------------------------------------------------
A first meeting of the creditors in the proceedings of Pink Plant
Hire and Haulage Pty Ltd will be held on May 16, 2024 at 10:00 a.m.
at the offices of Chartered Accountants Australia & New Zealand at
Waterfront Place, Level 13, 1 Eagle Street in Brisbane and via
virtual meeting technology.
Christopher John Baskerville and Clifford Rocke of Jirsch
Sutherland were appointed as administrators of the company on May
3, 2024.
RESIMAC TRIOMPHE 2024-1: S&P Assigns B(sf) Rating on Cl. F Notes
----------------------------------------------------------------
S&P Global Ratings assigned its ratings to seven classes of prime
residential mortgage-backed securities (RMBS) issued by Perpetual
Trustee Co. Ltd. as trustee for RESIMAC Triomphe Trust - RESIMAC
Premier Series 2024-1. RESIMAC Triomphe Trust - RESIMAC Premier
Series 2024-1 is a securitization of prime residential mortgage
loans originated by RESIMAC Ltd. (RESIMAC).
The ratings assigned reflect the following factors.
The credit risk of the underlying collateral portfolio and the
credit support provided to each rated class of notes are
commensurate with the ratings assigned. Subordination and lenders'
mortgage insurance (LMI) cover provide credit support. The credit
support provided to the rated notes is sufficient to cover the
assumed losses at the applicable rating stress. Our assessment of
credit risk takes into account RESIMAC's underwriting standards and
approval process, which are consistent with industrywide practices;
the strong servicing quality of RESIMAC; and the support provided
by the LMI policies on 16.7% of the portfolio.
The rated notes can meet timely payment of interest, and ultimate
payment of principal under the rating stresses.
Key rating factors are the level of subordination provided, the LMI
cover, the liquidity facility, the principal draw function, and the
provision of an extraordinary expense reserve. S&P's analysis is on
the basis that the notes are fully redeemed by their legal final
maturity date and it does not assume the notes are called at or
beyond the call date.
S&P said, "Our ratings also take into account the counterparty
exposure to National Australia Bank Ltd. as liquidity facility
provider and Westpac Banking Corp. as bank account provider.
"The transaction documents for the liquidity facility include
downgrade language consistent with S&P Global Ratings' counterparty
criteria. We have also factored into our ratings the legal
structure of the trust, which is established as a special-purpose
entity and meets our criteria for insolvency remoteness."
Ratings Assigned
RESIMAC Triomphe Trust - RESIMAC Premier Series 2024-1
Class A, A$675.000 million: AAA (sf)
Class AB, A$41.250 million: AAA (sf)
Class B, A$17.250 million: AA (sf)
Class C, A$7.875 million: A (sf)
Class D, A$3.000 million: BBB (sf)
Class E, A$2.625 million: BB (sf)
Class F, A$0.750 million: B (sf)
Class G, A$2.250 million: Not rated
SUNSHINE INN: Vegetarian Restaurant and Bar to Shut Up Shop
-----------------------------------------------------------
News.com.au reports that a popular inner-Sydney vegetarian bar and
restaurant is closing its doors.
This week Redfern venue Sunshine Inn told their six thousand social
media followers its doors would be shut for good in June.
"After four glorious years . . . It's been a wild ride!" the owners
posted on Instagram, news.com.au relays.
The bar and restaurant specialises in plant-based meals, and most
dishes are dairy-free.
News.com.au says fans are devastated at the closure.
"This is so sad," one commenter posted.
"Please tell me you have something else down the line," another
said.
"I guess I'll never eat again then," a customer bemoaned,
news.com.au relays.
The venue has a deal on cocktails to say goodbye, and one big feast
as a farewell.
"To cap it off, we will be hosting a big ol' dinner party of our
favourite dishes and some all star wines on June 6," they posted to
social media.
Several commenters asking why the venue was closing went
unanswered, the report notes.
News.com.au adds that popular nationwide vegan fast food chain Lord
of the Fries closed its last NSW store last week. The Newtown Lord
of the Fries was only about two kilometres from Sunshine Inn.
TOTAL ESSENTIAL: First Creditors' Meeting Set for May 17
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Total
Essential Services Group Pty. Ltd. will be held on May 17, 2024 at
12:00 p.m. via teleconference only.
Stephen Dixon of Hamilton Murphy Advisory were appointed as
administrators of the company on May 7, 2024.
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C H I N A
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R&F PROPERTIES: Offloads Luxury London Towers for HKD1
------------------------------------------------------
Yicai Global reports that shares of R&F Properties surged after the
Guangzhou-based property firm sold One Nine Elms, a mixed-use
high-rise project in London, to Cheung Chung Kiu, a Chinese
property tycoon, for a symbolic price of HKD1 (13 US cents) to
reduce its debt.
The major southern property developer on May 9 sold the project
that consists of two buildings, River Tower and City Tower, to a
special-purpose vehicle owned by Cheung which will shoulder at
least USD800 million of bond principal, Yicai learned.
The buyer will also assume project loans, the seller announced last
month.
According to Yicai, the sale is the latest proof of R&F's efforts
to improve its financial situation by unloading assets on the home
turf and abroad to pay off debts and complete unfinished work. R&F
bought the luxury project that was set to be the two tallest
residential towers in Europe when construction started in 2017 from
Wanda Group in 2018. The 105,000-square-meter project, which was
supposed to be ready by last November, has nearly 440 residential
units and a hotel.
Cheung is the actual controller of Chongqing-headquartered real
estate developer CC Land Holdings.
About Guangzhou R&F
Guangzhou R&F Properties Co., Ltd. operates real estate businesses.
The Company provides housing renovation, housing loans, real estate
brokerage, property management, and other services. Guangzhou R&F
Properties also operates hotel management.
As recently reported in the Troubled Company Reporter-Asia Pacific,
Fitch Ratings has affirmed the Long-Term Foreign-Currency Issuer
Default Ratings (IDR) on Guangzhou R&F Properties Co. Ltd. and its
subsidiary, R&F Properties (HK) Company Limited (RFHK), at 'RD'
(Restricted Default). It has also affirmed RFHK's senior unsecured
rating and the rating on the RFHK-guaranteed notes issued by Easy
Tactic Limited at 'C', with the Recovery Ratings of 'RR5'.
At the same time, Fitch has chosen to withdraw the ratings on
Guangzhou R&F and RFHK for commercial reasons.
SPACECYCLE: Fraud May Be Suspected After Closure, Lawyer Says
-------------------------------------------------------------
Yicai Global reports that classes and job vacancies advertised by
Space in the five days before the upmarket Chinese gym chain
suddenly closed may have been fraudulent, according to a lawyer.
A company is unlikely to decide to go into liquidation in a very
short period of time, said Zhao Zhanzhan of Beijing Jia Lawyer. If
Space was still selling classes while deciding to enter
liquidation, that could constitute fraud, Zhao pointed out, Yicai
relates.
SpaceCycle, the gym chain's operator, announced on April 30 that it
could no longer continue to run the venues, adding that the
Beijing-based company would resolve its remaining debt problems in
accordance with the law to protect the interests of its creditors,
according to Yicai.
Space did not refund any fees to its members before closing, Yicai
learned. In addition, it made job postings and offered course
discounts on its WeChat account on April 25.
Established in 2015 by former Sony Music Entertainment executive
Matthew Allison, Space focused on "music plus fitness" classes. Its
three outlets in Beijing, four in Shanghai, and one in Hangzhou
were all located in key business districts and targeted well-heeled
white-collar workers.
In 2018, Space secured CNY100 million (USD13.8 million) in a
fundraiser led by Chinese e-commerce giant Alibaba Group Holding,
with Hong Kong actor Daniel Wu also investing, recalls Yicai.
=========
I N D I A
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ABDOS LAMITUBES: CRISIL Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Abdos
Lamitubes Private Limited (ALPL) continue to be 'CRISIL B+/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 15 CRISIL B+/Stable (Issuer Not
Cooperating)
External Commercial
Borrowings 32 CRISIL B+/Stable (Issuer Not
Cooperating)
Long Term Loan 10 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with ALPL for
obtaining information through letter and email dated April 19, 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 ALPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ALPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
ALPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Issuer not coopeIncorporated in 2004 in Guwahati and promoted by Mr
Rajesh Agarwal and his brother, Mr Sanjay Agarwal, ALPL
manufactures multilayer laminated tubes mainly for Hindustan
Unilever Ltd products such as Pepsodent, Close-Up, and Fair &
Lovely. ALPL has annual production capacity of around 728 million
tubes.
ACCORD UDYOG: CRISIL Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Accord Udyog
Private Limited (AUPL) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with AUPL for
obtaining information through letter and email dated April 19, 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 AUPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AUPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AUPL continues to be 'CRISIL D Issuer Not Cooperating'.
AUPL was incorporated in 2008, by the promoters, Mr Avinash Singh
and Ms Jyoti Singh. The Jamshedpur-based company trades in steel
products such as channels, pipes, angles, plates, chequer plates,
galvanised plain and corrugated sheets, thermo-mechanically treated
bars, bars, and other such products.
AMBICO EXPORTS: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Ambico
Exports and Imports Private Limited (Ambico) continue to be 'CRISIL
D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Line of Credit 5 CRISIL D (Issuer Not
Cooperating)
Line of Credit 19 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with Ambico for
obtaining information through letter and email dated April 19, 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 Ambico, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
Ambico is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of Ambico continues to be 'CRISIL D Issuer Not
Cooperating'.
Ambico was founded by Mr. Kalpesh Patel and Mr. Harshad Patel in
Mumbai in 2004. The company polishes rough diamonds and trades in
bulk chemicals. It derives most of its revenue from the diamond
polishing segment.
DEEPAK YADAV: CRISIL Keeps B Debt Rating in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Deepak yadav &
others (DYAT) continues to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 9 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with DYAT for
obtaining information through letter and email dated April 19, 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 DYAT, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on DYAT
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
DYAT continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Established in 2016 by Mr. Deepak Yadav, Mr. Pawan Kumar, Mr.
Hoshiyar Singh and Mr. Ravinder Singh Yadav, DYAT is setting up a
warehouse in Pathredi, Gurgaon district.
DHIREN DIAMONDS: CRISIL Keeps B+ Debt Rating in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Dhiren
Diamonds (DD) continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Export Packing
Credit 16 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with DD for
obtaining information through letter and email dated April 19, 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 DD, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on DD is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of DD
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
DD was set up in 1992 by Mr Dahyabhyai M Dhamelia and his friends
as a partnership firm. The current partners of the firm are Mr
Dahyabhyai M Dhamelia, Mr Arvindbhai Dhamelia, Mr Hitendra
Dhamelia, Mr Chintan Dhamelia, Mr Kishan Dhamelia, and Mr Rasikbhai
Dhamelia.
The firm manufactures large diamonds, and specialises in certified
and non-certified polished diamonds of 20 cents to 5 carats. Its
head-office is in Mumbai and manufacturing unit is at Surat,
Gujarat.
DHOOT INFRASTRUCTURE: CRISIL Keeps B+ Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Dhoot
Infrastructure Projects Limited (DIPL) continues to be 'CRISIL
B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Lease Rental
Discounting Loan 4.2 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with DIPL for
obtaining information through letter and email dated April 19, 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 DIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on DIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
DIPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
For arriving at its ratings, CRISIL Ratings has combined the
business and financial risk profiles of DIPL, and its group
companies, Dhoot Developers Pvt Ltd (DDPL) and Dhoot Resorts & Spa
Pvt Ltd (DRSPL). This is because the three entities, collectively
referred to as the Dhoot group, have common promoters and
management, are in similar lines of business, and have a strong
likelihood of fungibilty of funds.
DDPL, set up in fiscal 1999, was the Dhoot group's first venture
into the real estate business. The Dhoot group, set up by Mr Kedar
Nath Dhoot, has been in the garment trading business since 1962.
The group also trades in hardware and electrical appliances, and
manufactures industrial tools and components. The Dhoot group also
has a presence in the education and healthcare businesses. In 1985,
Mr Pawan Dhoot, the current managing director, joined the business,
and initiated the group's entry into the real estate business.
In 2003, the Dhoot group's management decided to diversify its
operations, by entering the infrastructure development space. DIPL
was set up to run new residential and commercial real estate
businesses, while DDPL undertakes construction activity on contract
basis.
In 2011, Dhoot group ventured into the hospitality sector, and is
operating a resort at Damdama Lake (Gurgaon, Haryana) through
DIPL's group company, SDRSPL.
DUFLON INDUSTRIES: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Duflon
Industries Private Limited (DIPL) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.35 CRISIL D (Issuer Not
Cooperating)
Cash Credit 4 CRISIL D (Issuer Not
Cooperating)
Export Packing 30 CRISIL D (Issuer Not
Credit Cooperating)
Letter of Credit 9 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 5.8 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 3.51 CRISIL D (Issuer Not
Cooperating)
Term Loan 0.34 CRISIL D (Issuer Not
Cooperating)
Term Loan 2 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with DIPL for
obtaining information through letter and email dated April 19, 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 DIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on DIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
DIPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
DIPL, incorporated in 1988, promoted by Mr Shailesh H Mehta,
manufactures PTFE products such as nozzles, valves, and lined
pipes, which are used mainly in the pumps and valves industry.
Company has two manufacturing locations which at Raigad Maharashtra
& other at Ahmedabad Gujrat.
GANESH INDUSTRIES: CRISIL Keeps B Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shree Ganesh
Industries (SGI) continue to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Cash
Credit Limit 3 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SGI for
obtaining information through letter and email dated April 19, 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 SGI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SGI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SGI continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Established in 2000 and promoted by Mr Sanjay Bachuwar, SGI
executes cotton ginning business in Nizamabad, Telangana.
GVR ASHOKA: Ind-Ra Hikes Term Loan Rating to B
----------------------------------------------
India Ratings and Research (Ind-Ra) has taken the following rating
actions on GVR Ashoka Chennai ORR Limited's (GACOL) debt
instruments:
-- INR7.20 bil. Proposed term loan^ assigned with Provisional IND
A+/Stable rating;
-- INR3,630.12* bil. (reduced from INR5,958.9 bil.) Term loan due
on September 30, 2029 upgraded with IND B/Stable rating; and
-- INR8.830 bil. Proposed term loan is withdrawn#.
^ The rating on the proposed term loan is provisional and is
contingent upon execution of certain documents and/ occurrence of
certain steps. Please refer to section DISCLOSURES FOR PROVISIONAL
RATING for additional details as per SEBI's Master Circular.
*outstanding as of April 30, 2024
# Ind-Ra has withdrawn the rating of the existing provisional
rating on the request of the company as it did not avail any
facility against the same.
Analytical Approach
Ind-Ra continues to arrive at GACOL's ratings on a standalone
basis, considering the rated debt only. Based on the financing
agreements, any sponsor-injected funds, other than plain-vanilla
equity (including unsecured loans), in the project have been
considered subordinate and equity-like instruments in Ind-Ra's
analysis. Any deviation in the treatment of these instruments would
impact the ratings.
Detailed Rationale of the Rating Action
The upgrade for existing term loan reflects the timely debt
servicing since December 2023, and strengthened sponsor support
undertakings post Ashoka Buildcon Limited (ABL) acquired GVR Infra
Projects Limited's 50% stake in GACOL in March 2024. GACOL has now
become the wholly owned subsidiary of ABL. However, the rating is
constrained by GACOL's likely weak debt service coverage ratio
(DSCR) in FY25 due to higher repayment obligations, and the absence
of a debt service reserve (DSR) and a major maintenance reserve
(MMR) which makes GACOL to rely on the sponsor for any contingency,
especially with respect to delay in annuity.
The rating of the proposed term loan is supported by the favorable
debt structure in the form of a longer loan tenor at a lower
interest rate than the existing term loan, leading to a comfortable
DSCR throughout the tenor of the proposed term loan, and the
presence of a strong sponsor and sponsor support undertakings. The
debt structure also provides for an adequate cushion of five months
between the receipt of annuity and principal prepayment.
Furthermore, it features a DSR equivalent to six months of debt
service obligations that will be created partly at the time of
disbursement and the remaining using project cash flow by end-FY25
and provisions for MMR along with the visibility of creation of the
same as per base case projections post disbursement. The rating
also factors in the past deductions and delays in the receipt of
annuity from the Highways and Minor Ports Development, the
government of Tamil Nadu; however, the last five annuities were
received in full with an average delay of around two months and
maximum delay of 73 days, down from a maximum delay of five
months.
List of Key Rating Drivers
Strengths
-- Strong debt structure – proposed loan
-- Sponsor support undertakings from strong sponsor
-- Low revenue risk
Weaknesses
-- Weak debt structure – existing term loan
-- Moderate O&M Risk
-- Historical delays in annuity payments
Detailed Description of Key Rating Drivers
Strong Debt Structure of Proposed Loan: Ind-Ra has reviewed the
loan terms from the sanction letter for analyzing the debt
structure of INR7,200 million proposed term loan. The proposed term
debt shall be utilized towards refinancing the existing term loan
and a top-up debt, both totaling to INR7,200 million. The top-up
amount will be utilized towards the repayment of unsecured loans
and outstanding engineering, procurement and construction (EPC)
payments towards ABL. The proposed term loan has a comfortable debt
structure with a long tenor, with repayments starting from
September 30, 2024 and ending on March 31, 2033, with a tail period
of two years (four annuities). The start of the repayment is likely
to be aligned with annuity payment dates while maintaining a five
months gap between annuity and principal repayments. The repayment
will be in the form of structured bi-annual instalments in March
and September each year, providing a cushion of five months between
the annuity due date and principal repayment. The debt term also
features a DSR equivalent to six months of interest and one month
of principal repayment obligations, of which partial amount DSRA is
to be created at the time of disbursement and remaining by
end-FY25. The structure also includes a standard waterfall
mechanism and an annual testing of meeting DSCR of 1.10x.
Support Undertakings from Strong Sponsor: ABL has provided an
undertaking to bring in funds in case of any shortfall in debt
servicing, operation and maintenance expense and major maintenance
of the project on the date of such obligations.
ABL, incorporated in 1993, is present in the construction industry
for over 45 years. It has constructed 14,000 lane kilometers of
highways so far. ABL's credit profile is adequate with net leverage
of 1.75x as on 31 December 2023, Moreover, it had an order book of
INR140 billion as of December 31, 2023, providing 2.2x of revenue
visibility considering FY23 reported revenue. ABL has four annuity
and four HAM (hybrid annuity model) projects which are wholly
owned. Also, it owns seven HAM projects and six toll projects
through its subsidiary Ashoka Concession Limited.
Low Revenue Risk: GACOL faces limited revenue risks, given the
fixed availability-based annuity payments from a government-owned
counterparty, Department of Highways and Minor Ports Development.
Each semi-annual payment is sized at INR1,200 million, commencing
six months from the provisional commercial operations date (PCOD)
up to the end of the concession period. The project achieved PCOD
on April 23, 2017 and final commercial operations date on October
29, 2022. The annuity payments are fixed with no inflation
adjustments and are subject to deductions for non-conformance to
maintenance requirements and depressed lane availability during the
concession term. Any significant deduction due to the
non-maintenance of lane availability will be a key rating
sensitivity. The project had received 13 annuities as of April 2024
with a maximum delay of 148 days. The cushion of five months
between the annuity due date and the proposed term loan's scheduled
principal repayment, and stipulated reserves in the new debt offer
sufficient debt servicing protection.
Moderate O&M Risk: Maintaining the project as per the requirements
of the concession agreement will ensure receipt of annuity without
any performance-related deductions. ABL's significant experience in
road construction industry provides comfort. The O&M work is
conducted by a local O&M contractor along with the persons employed
by ABL. The management has planned major maintenance during FY25
and FY26 where ABL is going to execute the work. The proposed
refinancing projections account for the funds required for the same
and the coverages are comfortable post factoring in the expenses.
Furthermore, ABL has provided an undertaking that it will receive
payments from GACOL only if there is surplus after creating the
necessary reserves as per sanction terms. Furthermore, the adequate
O&M and major maintenance cost assumptions factored in Ind-Ra's
base case provide comfort. Maintenance of the project stretch as
per the required standards will be a key rating monitorable.
Delays in Annuity Payments: There have been delays in annuity
payments from Highways and Minor Ports Development, the government
of Tamil Nadu, which are made through Tamil Nadu Road Development
Company Limited ('IND BBB+'/Stable). Tamil Nadu Road Development
Company defined in the concession agreement broadly acts as a
supervising entity on behalf of the authority, without any
financial responsibility (including annuity payments) towards the
project. While the maximum delays between annuity due date and
receipt date have reduced to about two and half months for the last
five annuities from a maximum of around five months in earlier
annuities, the counterparty risk profile continues to be a rating
constraint.
Weak Debt Structure of Outstanding Loan: On the contrary, the
existing term loan features a fully amortizing repayment tenor
ending in FY30, with yoy higher repayments until FY25, thus
impacting DSCR. Quarterly principal due dates are scheduled two
months post the annuity due date. The financing agreement also
includes a DSR equivalent to three months of debt servicing (not
maintained), a standard waterfall mechanism, restricted payment
conditions and a minimum DSCR of 1.05x.
Liquidity
For Existing Term Loan – Stretched: As per Ind-Ra's base case,
the existing term loan has a DSCR of less than 1.0x for FY25, due
to higher repayment obligations in the loan structure as well as
historical delays in receipt of annuities. The rating continues to
factor in the project's stretched liquidity due to the absence of a
DSR to meet debt obligations if the annuity is delayed beyond the
due date. As of April 30, 2024, ABL infused funds to meet interest
servicing obligations as the SPV did not have any funds and it was
awaiting annuity payments which was due by end-April 2024. Given
the absence of liquidity along with weak coverage for FY25, the SPV
will rely on sponsor timely support in case of any delay in
annuity.
For Proposed Term Loan – Adequate: Post refinancing, Ind-Ra
believes the project cash flows shall ensure a minimum adequate
average DSCR of 1.60x to meet the debt obligations, considering the
substantial increase in the loan tenor and a reduction in the
interest rate, despite the top-up loan being availed. Furthermore,
the company will create a DSRA equivalent to three months interest
and half of upcoming principal repayment at the time of
disbursement, and the remaining DSRA equivalent to INR270 million
will be created by end-FY25. The cushion of five months between the
principal repayment and annuity receipt provides comfort. ABL has
provided an undertaking to infuse funds for servicing term loan
interest and O&M expenses up to three months in case of delays in
the receipt of annuity. Post the receipt of each annuity,
restricted cash equivalent to next six months' interest and O&M
expense will be maintained in SPV until the receipt of the next
annuity.
Rating Sensitivities
Existing Term Loan:
Negative: Absence of timely support from ABL in case of any fund
requirement including due to delay/significant deductions in
annuity receipts will lead to a negative rating action.
Positive: Minimum DSCR exceeding 1x as per Ind-Ra's base case
estimates and an improved liquidity will lead to a positive rating
action.
Proposed Term Loan:
Positive: A sustained track record of timely annuity and/or
performance being in line with Ind-Ra's base case estimates or
improved credit profile of the counterparty could lead to a
positive rating action.
Negative: The following developments, individually or collectively,
could lead to a negative rating action:
-- a sustained delay in the receipt of annuities beyond four
months,
-- a significant performance-related deduction in annuity,
-- deterioration in the credit profile of the counterparty,
-- absence of timely support from the sponsor and significant
deterioration in the credit profile of the sponsor, and
-- a dip into DSR or non-maintenance of other reserves as
stipulated in the financing documents.
Disclosures for Provisional Rating
1) RATING THAT WOULD HAVE BEEN ASSIGNED IN ABSENCE OF THE PENDING
STEPS/ DOCUMENTATION
Ind-Ra would not have assigned any rating in the absence of the
pending steps/documentation, as the transaction structure as
articulated does not exist.
2) PENDING STEPS/ DOCUMENTATION CONSIDERED WHILE ASSIGNING
PROVISIONAL RATING AND RISKS ASSOCIATED WITH THE PROVISIONAL NATURE
OF THE CREDIT RATING:
Sr. no.
Pending Critical Documentation while Assigning Provisional Rating*
Risks Associated with Provisional Nature of Credit Rating in
absence of Completed Documentation or a Change in Documentation
1 Facility agreement
The provisional rating is assigned pending the execution of the
financing documents in line with the sanction letter already shared
with Ind-Ra. In the absence of executed documents, which are in
line with the draft documents, the transaction structure as
delineated does not exist. In such a scenario, the agency would
have not assigned any rating to the proposed instruments.
*Additionally, any other relevant documents executed for the
transaction should be provided to the agency
The pending steps while assigning provisional rating are as
follows:
- the execution of facility agreement and other critical financing
documents
- debt terms in line with indicative terms assessed
3) VALIDITY PERIOD
The final rating, upon the receipt of the executed documents
consistent with the draft documents, shall be assigned within 90
days from the date of the issuance of the instrument. The
provisional rating may be extended by another 90 days, subject to
Ind-Ra's policy, if the execution of the documents is pending.
About the Company
GACOL is a wholly owned subsidiary of ABL, set up to develop and
operate a six-lane road project – Chennai Outer Ring Road Phase
II- in Chennai, Tamil Nadu. It has a 20-year concession, which
expires in March 2034, from the Highways and Minor Ports
Development and the government of Tamil Nadu to implement the
project under the build-operate-transfer annuity model. The project
was completed on October 29, 2022.
HAREKRISHNA COTTON: CRISIL Keeps B+ Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shree
Harekrishna Cotton Industries - Jamnagar (SHKCI) continue to be
'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B+/Stable (Issuer Not
Cooperating)
Cash Term Loan 1.5 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Long Term
Bank Loan Facility 2.5 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SHKCI for
obtaining information through letter and email dated April 19, 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 SHKCI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SHKCI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SHKCI continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Set up in 2014, SHKCI is a partnership firm promoted by the
Vasjaliya and Varsani families. The firm has started its commercial
operations from November 2014.
INDIA STEEL: Bankruptcy Court Admits Stecol's Insolvency Plea
-------------------------------------------------------------
The Economic Times reports that the Mumbai bench of the National
Company Law Tribunal (NCLT) has admitted listed firm India Steel
Works Ltd under the insolvency resolution process in an application
filed by its operational creditor Stecol International Pvt Ltd. The
tribunal has also appointed Vallabh N Sawana as the interim
resolution professional (IRP).
ET relates that India Steel Works plans to appeal at NCLAT for
urgent relief. Tribunal prohibits legal actions against India Steel
Works, restraining asset disposal. Stecol International approached
NCLT after India Steel Works defaulted on dues of INR2.6 crore.
India Steel Works Limited manufactures and sells a variety steel
products, including billets, hot rolled bars, forgings and cold
finished bars and wire rods.
KANTE WAKED: CRISIL Reaffirms D Rating on INR227.35cr Term Loan
---------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL D' rating on the long
term bank facilities of Kante Waked Multi Projects Private Limited
(KWMPPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Term Loan 11 CRISIL D (Reaffirmed)
Rupee Term Loan 146.61 CRISIL D (Reaffirmed)
Rupee Term Loan 140.04 CRISIL D (Reaffirmed)
Rupee Term Loan 227.35 CRISIL D (Reaffirmed)
The rating action follows the declaration by the management of
KWMPPL that it has signed an endorsement agreement with the
authority, Ministry of Road Transport and Highways (MoRTH) and
project lenders to transfer the hybrid annuity model (HAM) project
under the special purpose vehicle (SPV) to the new concessionaire.
However, transfer of the project as well as all associated
liabilities (including external debt obligation) is pending
documentation closure. Furthermore, CRISIL Ratings is awaiting
clarity related to the revised commercial operations date (COD) or
any penalties arising because of the transfer. The sponsor, Roadway
Solution India Infra Ltd (RSIIL), has initially invested for the
construction of the project, which was 32% completed as of April
2023.
CRISIL Ratings is in discussion with the company's management and
will monitor the final transfer and cash flow/penalties driven by
the sale of the project. Following clarity on the aforementioned
aspects, CRISIL Ratings will take necessary rating action.
The ratings reflect the inherent benefits of hybrid annuity model.
These strengths are partially offset by the delay in debt servicing
along with implementation risk as the project was stalled for
around three years when taken over by KWMPPL and remains short of
the targeted progress.
Analytical Approach
CRISIL Ratings has rated KWMPPL on standalone basis and not
factored the benefit of Corporate Guarantee support of the parent
(RSIIL) due to delay in meeting debt obligations, management's
stated intent of monetising this asset and also as the guarantee is
likely to fall off after COD or receipt of 1st annuity of the
project.
Key Rating Drivers & Detailed Description
Weaknesses:
* Delays in debt servicing: The company have delayed interest
servicing to its lenders.
* Exposure to implementation and funding risks: The project was
stalled for around three years. Subsequently, through execution of
an endorsement agreement with Ministry of Road Transport & Highways
(MoRTH) on April 19, 2022, the project was transferred to a new
sponsor, RSIIL, following which construction resumed. The
physical progress as of April 2023 was 32.16% (vis-à-vis scheduled
progress of 57.7%). The delay in physical progress was on account
of delay in takeover from weak EPC player, hindrances in land
acquisition and extended monsoon last year in that belt.
Total term loan for the project was INR513.99 crore, of which
INR119.47 crore was outstanding as on March 31, 2023, and INR394.52
crore was undrawn. The company is exposed to funding risk because
as per the sanctioned terms, non-payment of any instalment of the
principal amount of the term loan or interest thereon may trigger
an event of default and lenders have the right to cancel their
commitment until the relevant event of default is cured. This may
lead to delays in project execution.
Strength:
* Inherent benefits of hybrid annuity model (HAM): Benefits of HAM
include stable cashflow by way of semi-annual annuities during the
operations phase, mobilisation advance up to 10% of the bid project
cost (BPC), cost-escalation assurance provided by MoRTH in the
construction and operational phases, provision of termination
payment from the authority in case of termination on account
concessionaire as well as authority. HAM also allows for
provisional commercial operations date (PCOD) to be issued upon
completion of construction on the land made available up to 146
days from the appointed date, allowing full annuity to be paid as
if the project has been completed. The concessionaire must complete
construction on the remaining land whenever it is made available
post PCOD. Furthermore, the HAM concession agreement allows change
in scope on land not available within 180 days of the appointed
date, reducing completion cost and the corresponding annuity and
operations and maintenance (O&M) payments while facilitating timely
completion of the project. Other benefits include indexation done
to the BPC and O&M cost to the extent of inflation and interest
payments on residual annuity payments in the operational phase.
Liquidity: Poor
The delay in meeting interest obligations is owing to poor
liquidity.
Rating Sensitivity Factors
Upward factors
* Track record of timely servicing of debt obligations
* Completion of the project on or before time within the revised
budgeted cost
* Creation of full DSRA of 3 months
Incorporated on November 2, 2021, KWMPPL is a special-purpose
vehicle promoted by RSIIL set up for implementing a road project
involving development of the existing two lanes of Kante Waked road
from km 281.300 to km 332.200 (total length: 50.90 km) and
construction of additional two lanes on either side under HAM.
RSIIL holds 80% of the equity interest in KWMPPL while the
remaining stake is held by the promoters. However, the project
underneath the SOV is currently under transfer process to a new
concessionaire. The project pavement is rigid (concrete).
About the Sponsor
RSIIL is a leading engineering and construction company with ~15
years of experience in road construction. The company undertakes
projects both on build, operate, transfer and HAM basis.
The company has 15 ongoing projects in the roads and highways
sector. It bagged three EPC projects worth INR2,948 crore in
Maharashtra and Jaipur and had an order book of INR5,366 crore as
on March 31, 2023.
M. M. INTERNATIONAL: CRISIL Reaffirms D Rating on INR15.5cr Loan
----------------------------------------------------------------
CRISIL Ratings has reaffirmed its ratings on the bank facilities of
M. M. International (MMINTL) at 'CRISIL D/CRISIL D'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.04 CRISIL D (Reaffirmed)
Foreign Currency
Term Loan 1.69 CRISIL D (Reaffirmed)
Foreign Currency
Term Loan 2.5 CRISIL D (Reaffirmed)
Packing Credit in
Foreign Currency 15.5 CRISIL D (Reaffirmed)
Proposed Long Term
Bank Loan Facility 2.5 CRISIL D (Reaffirmed)
Proposed Short Term
Bank Loan Facility 11.65 CRISIL D (Reaffirmed)
Working Capital
Term Loan 4.12 CRISIL D (Reaffirmed)
The ratings continue to reflect delays in servicing of debt and
leveraged capital structure and modest scale of operations. These
weaknesses are partially offset by the established relationships of
the firm with its customers resulting from extensive experience of
the promoters and moderate debt projection metrics.
Key Rating Drivers & Detailed Description
Weakness:
* Delays in Debt servicing: There has been a delay in servicing the
principal of loan against property (LAP) in which MMINTL is a
co-borrower due to tight cash flows owing to business pressure.
Timely servicing of term debt obligation remains to be a key rating
sensitivity factor.
* Leveraged Capital Structure: While the firm has moderate working
capital requirement the reliance on external funds continues to
remain high indicated by average bank limit utilization of around
96.11% in last 12 month ending March 2024. It is on account of a
modest net worth of INR17.36 crore which has also resulted in total
outside liabilities to adjusted net worth ratio of 1.36 times as on
March 31, 2023. However, with improving liquidity, capital
structure is expected to gradually improve over medium term.
Strengths:
* Extensive industry experience of the promoters & established
customer base: With over 2 decades of experience in the spice
industry and promoter's understanding of the dynamics of the market
company was able to establish healthy relationships with its key
stakeholders like suppliers and customers.
* Moderate Debt Protection Metrics: Company has moderate debt
protection metrics indicated by interest coverage ratio of 3.84
times for fiscal 2023 and net cash accruals to adjusted debt of
around 0.04 times. Debt protection metrics is expected to remain
moderate over the medium term as well.
Liquidity: Poor
Liquidity is poor as there is a delay in term debt in which MMINTL
is co-borrower. Bank limit utilization is high at around 96.11
percent for the fund-based facilities during the past twelve months
ended March 2024. Liquidity is expected to improve and same remains
key monitorable.
Rating Sensitivity Factors
Upward Factors
* Track record of timely debt servicing for 90 days or more
* Improvement in scale of operations
* Improvement in financial risk profile
Incorporated in November 1996, MMINTL is a partnership firm into
processing and exporting spices (such as turmeric, coriander,
cumin, mustard and ginger) and food products (such as poha and
jaggery). The firm is based in Mumbai and is promoted by the Vora
family. Manufacturing unit of the firm is in Navi Mumbai.
MANGLAM PAPER: Ind-Ra Cuts Bank Loan Rating to D
------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Manglam Paper
Private Limited's (MPPL) bank facility ratings to 'IND D (ISSUER
NOT COOPERATING)' from 'IND BB-/Stable (ISSUER NOT COOPERATING)'
while maintaining the ratings in the non-cooperating category.
The issuer did not participate in the rating review despite
continuous requests and follow-ups by the agency. The rating is
based on the best available information. Therefore, investors and
other users are advised to take appropriate caution while using the
rating.
The detailed rating actions are:
-- INR185 mil. Term loan (long-term) due on February 2023
downgraded with IND D (ISSUER NOT COOPERATING) rating; and
-- INR110 mil. Fund-based working capital limit (long-term/short-
term) downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: Issuer did not cooperate; based on the best-available
information.
Analytical Approach
Not applicable
Detailed Rationale of the Rating Action
The downgrade reflects MPPL's delays in debt servicing, based on
the information available from sources as the liquidation process
has been initiated against the entity under the Insolvency and
Bankruptcy Board of India (Liquidation Process) Regulations, 2016
and confirmation from the issuer on migration of account to
non-performing assets (NPA) by the lender since November 2019.
Ind-Ra has not been able to ascertain the reason for the delays, as
the issuer has been non-cooperative.
The ratings continue to be maintained in non-cooperating category
in accordance with Ind-Ra's Guidelines on What Constitutes
Non-Cooperation.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with MPPL while reviewing the
rating. Ind-Ra had consistently followed up with MPPL over emails,
apart from phone calls. The issuer has also not been submitting
their monthly no default statement (NDS).
Limitations regarding Information Availability
Ind-Ra is unable to provide an updated forward-looking view on the
credit rating of MPPL, as the agency does not have adequate
information to review the rating. If an issuer does not provide
timely business and financial updates to the agency, it indicates
weak governance, particularly in 'Transparency of Financial
Information'. The agency may also consider this as symptomatic of a
possible disruption / distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. MPPL has been
non-cooperative with the agency since 12 March 2018.
About the Company
Incorporated in 1982, MMPL is engaged in trading of kraft paper.
Among the promoters, Lalit Kumar Patel has 35 years of experience
in the paper manufacturing industry. The company's day-to-day
operations are carried out by Lalit Kumar Patel and his son Dharma
Patel.
NEXUS ELECTRO: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Nexus Electro
Steel Limited (NESL) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.5 CRISIL D (Issuer Not
Cooperating)
Bill Discounting 2 CRISIL D (Issuer Not
Cooperating)
Cash Credit 20 CRISIL D (Issuer Not
Cooperating)
Cash Credit 5 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 10 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 23 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 16 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Working Capital 22.5 CRISIL D (Issuer Not
Term Loan Cooperating)
CRISIL Ratings has been consistently following up with NESL for
obtaining information through letter and email dated April 19, 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 NESL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on NESL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
NESL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
NESL, incorporated in 1998, manufactures cut, winding, core and
coil assembly laminations used in distribution and power
transformers, and generators. Its facilities are in Puducherry and
Mumbai.
OM SWAROOP: Ind-Ra Assigns B+ Bank Loan Rating, Outlook Stable
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated OM SWAROOP ISPAT
PRIVATE LIMITED's (OSIPL) bank facilities as follows:
-- INR250 mil. Fund-based working capital limits assigned with
IND B+/Stable/IND A4 rating;
-- INR555.7 mil. Term loan due on September 2032 assigned with
IND B+/Stable rating; and
-- INR44.3 mil. Proposed bank facility assigned with IND B+/
Stable rating.
Analytical Approach
Ind-Ra has taken a standalone view of OSIPL to assign the ratings.
Detailed Rationale of the Rating Action
The ratings reflect the absence of any track record along with the
time and cost overrun risks associated with the setting up of
OSIPL's manufacturing plant for mild steel (M.S) strips. The
project entails a total investment of INR967.5 million; of this,
57% (INR555.7million) will be funded through term loans, and the
balance will be contributed by the promoters, leading to a high
debt-equity ratio. Furthermore, OSIPL has availed working capital
limits of INR250 million for the day-to-day operation of the
business. The ratings derive comfort from the experienced
promoters.
List of Key Rating Drivers
Weaknesses
- Lack of track record
- Stretched liquidity
Strengths
- Experienced promoters
Detailed Description of Key Rating Drivers
Lack of Track Record: OSIPL is setting up an M.S. strip
manufacturing plant in Raipur, Chhattisgarh. The management has
informed the agency that the commercial operations will commence
from May 2024. The company has completed the construction of the
shed and building and the installation of plant and machinery.
The electrical installations have also been completed and
miscellaneous fixed assets have been procured. Ind-Ra expects the
scale of operations to remain small over the medium term, given the
risks associated with the capacity utilization of the plant.
Stretched Liquidity: Of the total project cost of INR967.5 million,
INR555.7million would be funded through term loan and remaining
will be funded through unsecured loans from the promoters. Of the
term loan, INR430.27 million had been disbursed as on 29 February
2024. In addition, OSIPL has availed working capital limits of
INR250 million for its day-to-day operations; the amount is yet to
be disbursed.
Experienced Promoters: The rating also factors in the promoters'
experience of 15 years in the iron and steel manufacturing
industry. This would help the company establish strong
relationships with customers as well as suppliers.
Liquidity
Stretched: As of February 2024, out of the total project cost of
INR967.5 million, OSIPL had incurred capex of INR642.58 million for
the project, funded through term loans of INR430.27 million, equity
capital of INR107.54 million, and promoters' funds and internal
accruals of INR104.75 million. The balance capex of INR324.92 will
be incurred during FY25, funded through term loan and promoters'
funds. OSIPL has acquired the land for the project, installed all
the additional machine purchased and has paid advances of INR2.03
million to sundry creditors. The agency expects the remaining capex
to be completed during FY25. In the event of a delay in the capex
completion, the expenses will be funded by the promoters. However,
this could impact the debt service coverage ratio. OSIPL does not
have any capital market exposure. The repayment of the term loan
will start from March 2026. The company has repayment obligations
of INR42.4 million in FY26 and INR78.2 million in FY27.
Rating Sensitivities
Negative: Any delay in the commencement of operations and achieving
stability in the operating performance after the commencement of
commercial operations, affecting the company's debt servicing
ability, could lead to a negative rating action.
Positive: The timely commencement of operations and the subsequent
achievement of stable operating profitability could lead to a
positive rating action.
About the Company
Incorporated in 2023, OSIPL is setting up a unit to manufacture
M.S. strips in Raipur, via captive consumption of M.S. billets
through casting machines.
OPAL LUXURY: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Opal Luxury
Time Products Limited (OLTPL) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL D (Issuer Not
Cooperating)
Cash Credit 8 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with OLTPL for
obtaining information through letter and email dated April 19, 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 OLTPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on OLTPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
OLTPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Based in Pune (Maharashtra), OLTPL was incorporated in 2007. The
company was listed on the National Stock Exchange's SME (small and
medium enterprise) platform in fiscal 2013. The business was
earlier carried out under a partnership firm, Opal Industries,
established in 1996. OLTPL manufactures a variety of premium wall
clocks under its registered brands, Opal and Caliber.
ORIGO COMMODITIES: Ind-Ra Withdraws BB LT Issuer Rating
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Origo Commodities
India Private Limited's Long-Term Issuer Rating of 'IND BB' with a
Stable Outlook as follows:
-- Long-Term Issuer Rating is withdrawn.
Analytical Approach
Not applicable
Detailed Rationale of the Rating Action
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a withdrawal request from the issuer. This is
consistent with Ind-Ra's Policy on Withdrawal of Ratings. Ind-Ra
will no longer provide analytical and rating coverage for the
company.
About the Company
Incorporated in 2011, Origo Commodities India is promoted by Mayank
Dhanuka and Sunoor Kaul. The company provides agri-commodities
supply chain solutions, warehousing management including trade
facilitation and procurement finance of agri commodities. The
company also provides value-added solutions including storage and
preservation for agri commodities. The company has two
subsidiaries: Origo Finance Private Limited and Origo Markets
Private Limited.
PARAG AGRO: Ind-Ra Affirms BB+ Bank Loan Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has taken the following rating
actions on Parag Agro Foods and Allied Products Private Limited's
(PAFAPPL) debt instruments:
-- INR1.550 bil. (reduced from INR1,750.50 bil.) Fund-based
working capital limits affirmed with IND BB+/Stable/IND A4+
rating;
-- INR1,249.50 bil. Term loans due on March 2027 affirmed with
IND BB+/Stable rating;
-- INR22.93 mil. Term loan due on March 2027 assigned with IND
BB+/Stable rating; and
-- INR177.57 mil. Proposed fund-based working capital limits
assigned with IND BB+/Stable/IND A4+ rating.
Analytical Approach
Ind-Ra continues to take a standalone view of PAFAPPL to arrive at
the ratings.
Detailed Rationale of the Rating Action
The ratings reflect PAFAPPL's long track record of operations in
the sugar industry and its medium scale of operations, which is
likely to improve in FY25 and in the medium term, led by the
expansion of the distillery segment's capacity in FY24 and the
synergies from the expansion of the sugar mill's existing capacity
in FY24. The synergies from the capex are likely to improve the
entity's EBITDA margin significantly FY25 onwards and the
medium-term and provide improved long-term revenue visibility. The
ratings are restricted by the agency's expectations of a negative
free cash flow in FY25 which puts pressure on the medium-term
liquidity. The regulatory risks in the sugar industry and the
recent restrictions imposed by the government on the production of
ethanol from syrup and B-heavy molasses also constrain the ratings.
List of Key Rating Drivers
Weaknesses
-- Modest credit metrics
-- Modest EBITDA margins
-- Regulatory risks
-- Agro-climatic risks
Strengths
-- Successful completion of debt-funded capex undertaken by
company
-- Established track record
Detailed Description of Key Rating Drivers
Modest Credit Metrics: PAFAPPL recorded an interest coverage
(EBITDA/gross interest expense) of 2.07x in FY23 (FY22: 1.71x) and
an adjusted net leverage (adjusted net debt/operating EBITDA) of
4.41 (7.26x). The metrics improved in FY23 due to an increase in
the absolute EBITDA to INR556.63 million (FY22: INR483.16 million).
The metrics are likely to improve over FY24-FY26 backed by the
sustained operating performance and scheduled repayments of the
long-term debt. Also, PAFAPPL's credit metrics over the medium term
will depend on its ability to improve its margins while increasing
its top line by capitalizing on the capex.
Modest EBITDA Margins: PAFAPPL's EBITDA margins remain moderate
owing to the regulated nature of the sugar industry. The EBITDA
margins declined year-on-year to 12.24% in FY23, however; the same
had improved in FY22 to 14.86% (FY21: 14.80%). The decline in the
margins in FY23 was on account of an increase in the overall
material expenses. During 11MFY24, the company booked a margin of
about 26%,on account of increased realizations from the distillery
segment, backed by the expanded capacities. The EBITDA margin
improved in FY22 due a fall in the employee benefit and harvesting
and transportation expenses. The return on capital employed was
10.4% in FY23 (FY22: 10.1%). Nevertheless, Ind-Ra expects the
margins to have improved in FY24 and to continue to do so in FY25
(in comparison to FY23), backed by higher realizations, resulting
from increased production from the co-generation unit and the
setting up of the ethanol manufacturing plant during FY24.
Regulatory Risks: The sugar industry is regulated and vulnerable to
government policies as it is classified as an essential commodity.
Besides setting quotas for sugar exports, the government has
implemented various regulations such as fixing the raw material
prices in the form of state-advised prices and fair and
remunerative prices. All these factors impact the cultivation
patterns of sugarcane in the country, and thus, affect the
profitability of sugar companies.
Agro-climatic Risks: Being an agro-based Industry, the sugar
business is susceptible to the vagaries of monsoons. The production
and recovery from sugarcane heavily influences the performance of
the sugar industry. Sugarcane, cultivated in the tropical and
subtropical region, is a water-intensive crop. As such, the water
requirements have to be met through rainfall or irrigation. In
India, agriculture is primarily dependent on agro-climatic
conditions. Poor rainfall and droughts' impact the production,
yields and recovery from sugarcane, which adversely affects sugar
manufacturing companies.
Successful Completion of Debt-Funded Capex Undertaken by Company:
During FY24, PAFAPPL had undertaken a capex of INR130 million to
expand the distillery capacity of 100 kilo liter per day (KLPD)
from 45KLPD, INR40 million for the enhancement of the sugar
crushing capacities to 5,500 tons crushed per day (TCD) from
4,500TCD. The expansion of the distillery unit and the crushing
unit was primarily funded by a debt of INR110.50 million and the
balance was funded through a promoter contribution of INR59.50
million. The operations of both the expanded capacities commenced
during the FY24 crushing season. The distillery unit focuses solely
on the production of ethanol from B-heavy molasses, C-heavy
molasses and cane juice. The increase in working capital
utilization would have resulted in slight deterioration in
PAFAPPL's credit metrics in FY24, according to Ind-Ra; however, the
same has been set off by the absence of any further capex and the
improved operating performance through the recently executed capex
plans. Nevertheless, the optimum utilization of the crushing
capacities and distillery operations for the next season (FY25)
thereby achieve the envisaged revenue and profitability remains a
key monitorable.
Established Track Record: PAFAPPL has been operating in the
industry for more than seven years. This, along with its
experienced management, has led to established relationships with
suppliers (farmers). Furthermore, the company has diversified its
operations by setting up a co-generation unit in Maharashtra, which
has a relatively stable regulatory environment compared to other
states in the country.
Liquidity
Stretched: PAFAPPL primarily funds its working capital requirements
through pledge loan and cash credit. PAFAPPL's cash flows from
operations improved to INR1,111.96 million in FY23 (FY22: INR244.86
million) owing to favorable changes in the working capital. The
same was on account of a decrease in the inventory days to 148 in
FY23 (FY22: 358), on account of the company commencing its
distillery operations though there was a higher inventory
liquidation in FY22 on the back of higher export quota received.
However, with the likely improvement in the scale, the free cash
flow is likely to be impacted negatively in FY25. The cash and cash
equivalents stood at INR14.02 million at FYE23 (FYE22: INR43.52
million). The company has scheduled principal debt repayments of
INR283 million in FY25 and INR245 million in FY26. Furthermore,
while the debt service coverage ratio (DSCR) is likely to remain
tightly matched for FY24, it will improve FY25, backed by the
increased ethanol realizations, according to Ind-Ra. PAFAPPL's
increased focus on diverting more sugar syrup to manufacture
ethanol will be positive for the company, as the ethanol
manufacturing would lead to quicker receivables compared to the
gradual liquidation of the large sugar inventory. Furthermore,
PAFAPPL has no capital market exposure and is restricted to a
couple of banks for the funding of its working capital
requirements.
Rating Sensitivities
Negative: Substantial deterioration in the scale of operations or
deterioration in credit metrics or the net financial leverage
remaining above 4x will be negative for the ratings.
Positive: A substantial improvement in the balance sheet structure,
along with an improvement in the liquidity including the current
ratio and credit metrics, with the net financial leverage falling
below 4x, all on a sustained basis, will be positive for the
ratings.
Any Other Information
Medium Scale of Operations: PAFAPPL's revenue improved
significantly to INR4,545 million in FY23 (FY22: INR3,250 million),
on account of revenue contribution from the ethanol and extra
neutral alcohol segments and improved capacity utilization (FY23:
106%, FY22: 91%). Until FY22, the company used to derive revenue
solely from the sugar segment. In 11MFY24, the company recorded for
a revenue of INR2,820 million (inclusive of all the
segments).PAFAPPL's sugar sales (volume) improved to 112.1052
million kg in FY23 (FY22: 89.6373 million kg). However, in FY24,
the bagged sugar was about 72.7200 million kg. PAFAPPL's sugar
sales contributed 61% to sales in 9MFY24 (FY23: 84%, FY22: 90%),
followed by ethanol at 31% (7%, nil) and the remaining 8% (8%; 10%)
from by-products and co-gen. The sugar sales were lower
year-on-year in FY24 due to a fall in the sugar quota received
from the government and lower capacity utilization though the
number of crushing days were at a similar level of about 155-160
days. Ind-Ra expects the revenue to improve in FY25 led by growth
in the sugar crushing capacities along with the installation of the
distillery unit, also supported by the sugar volumes as well as
higher realization per metric ton for sugar.
About the Company
Incorporated in 2013; PAFAPPL, with its registered office at
Ravadewadi, Pune Maharastra, is engaged in the manufacturing of
sugar, molasses, ethanol and co-generation of power. The company is
promoted by the Mutha Family. PAFAPPL is a closely held company and
its entire shareholding is held by the promoters.
The company started with a sugar manufacturing unit with an
installed capacity of 4,500TCD. It expanded its sugar crushing
facility in November 2023 to 5,500TCD and expanded the distillery
capacity to 100KLPD/per annum from 45KLPD/per annum which commenced
commercial production in FY24. The company has integrated
operations with a distillery with a capacity of 100KLPD and a
cogeneration power plant of 14MW capacity which uses bagasse as
fuel and an incineration boiler.
PLAZA COMPUTERS: CRISIL Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Plaza
Computers (PC) continues to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Packing Credit 7 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PC for
obtaining information through letter and email dated April 19, 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 PC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PC is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of PC
continues to be 'CRISIL D Issuer Not Cooperating'.
PC, set up in 1994-95 as a proprietorship firm by Mr. Sudeep Goel,
manufactures and exports women's readymade garments and its
facility is at Devli in New Delhi. Mr. Goel set up PCG in 2003. Its
manufacturing facility is in Noida, Uttar Pradesh.
SHALAK EATABLE: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shalak
Eatable Products Private Limited (SEPPL) continue to be 'CRISIL
D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Standby Overdraft
Facility 1.50 CRISIL D (Issuer Not
Cooperating)
Term Loan 14.66 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SEPPL for
obtaining information through letter and email dated April 19, 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 SEPPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SEPPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SEPPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
SEPPL was set up in 2008, by the promoters, Mr Rajesh Bansal and Mr
Yogesh Bansal. The company manufactures and trades in 2D and 3D
pellet snacks. In fiscal 2019, the product profile was diversified
to include food products such as pasta and macaroni. The
manufacturing facility is in Mohammadpur (Lucknow).
SHIV CORPORATION: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shiv
Corporation - Gondia (SC) continue to be 'CRISIL D/CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2.5 CRISIL D (Issuer Not
Cooperating)
Cash Credit 2.5 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 0.26 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 1.4 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term
Bank Loan Facility 3.34 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SC for
obtaining information through letter and email dated April 19, 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 SC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SC is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of SC
continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Established in 2008, SC undertakes civil construction, specialising
in earthworks and sheath lining. Mr Gaurang Amin, Mr Hiren Amin, Mr
Shivang Amin, and Mr Shivam Amin are the promoters.
STAR CARS: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of The Star Cars
Private Limited (SCPL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 4 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 1 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with SCPL for
obtaining information through letter and email dated April 19, 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 SCPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SCPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SCPL continues to be 'CRISIL D Issuer Not Cooperating'.
SCPL, established in 2011, retails Volkswagen cars in Puducherry.
Its operations are managed by Mr. Shajahan.
T T LIMITED: Ind-Ra Affirms BB+ Rating, Outlook Stable
------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed T T Limited's
(TTL) bank facilities at 'IND BB+' with a Stable Outlook, while
resolving the Rating Watch with Developing Implications as
follows:
-- INR308 mil. (reduced from INR750 mil.) Fund-based limits
affirmed; off Rating Watch with Negative Implications with
IND BB+/Stable/ IND A4+ rating;
-- INR50 mil. Non-fund-based limits affirmed; off Rating Watch
with Negative Implications with IND A4+ rating; and
-- INR280 mil. (reduced from INR318.2 mil.) Term loan due on
February 2026 affirmed; off Rating Watch with Negative
Implications with IND BB+/Stable rating.
Analytical Approach
Ind-Ra continues to take a standalone approach to arrive at the
rating.
Detailed Rationale of the Rating Action
The resolution of Rating Watch with Negative Implications reflects
TTL receiving the proceeds from the sale of its Gajraula facility
which was utilized partially for reducing its debt and the rest
would be utilized for setting up a new garment facility in Kolkata.
The ratings reflect the small scale of operations and a decline in
the margin in 9MFY24.
List of Key Rating Drivers
Weaknesses
Modest credit metrics
Decline in revenue
Stretched liquidity
Modest EBITDA margin
Intense competition in textile industry
Strengths
Sale of Gajroula facility
Establishing new facility in FY25
Long operational track record; experienced management
Detailed Description of Key Rating Drivers
Modest Credit Metrics: TTL's credit metrics weakened in FY23, owing
to a decline in the absolute EBITDA to INR97.54 million (FY22:
INR390.72 million). Its gross interest coverage (operating
EBITDA/gross interest expenses) reduced to 0.57x in FY23 (FY22:
1.81x) and the net leverage (total adjusted net debt/operating
EBITDAR) increased to 15.26x (4.37x). In 9MFY24, TTL's credit
metrics improved, owing an improvement in the EBITDA to INR125.99
million with the interest coverage of 1.04x in 9MFY24. Ind-Ra
expects the metrics to improve in the near term on the back of the
ongoing restructuring of the business, the reduction in working
capital limits, and the prepayment of the long-term and guaranteed
emergency credit line loans of Indian Bank ('IND AA+'/Stable) using
the funds received from the sale of the Gajraula facility.
Decline in Revenue: TTL's revenue declined to INR2,030 million
during FY23 (FY22: INR3,955 million), due to weak demand that was
impacted by the resistance from downstream companies to high cotton
prices, uncompetitive Indian yarn prices in the international
market, and a slowdown in demand from developed nations amid
recessionary concerns. The scale of operations remained small.
Although TTL exited from the yarn manufacturing business in October
2021, it continues to engage in the yarn trading business owing to
its longstanding relationships with its existing customers. In
9MFY24, the company achieved revenue of INR1,596.43 million. Ind-Ra
expects TTL's revenue to have increased yoy in FY24, led by the
restructuring of the business, and believes the revenue would
improve steadily in the medium term, with additional revenue
accruing from the new facilities that are proposed to be set up in
National Capital Region and Kolkata, which might start generating
revenue from FY25.
Stretched Liquidity: TTL's average utilization of the fund-based
limits was above 95% during the 12 months ended March 2024. The
cash flow from operations reduced to INR308 million FY23 (FY22:
INR193.3 million) in line with the decline in EBITDA, on account of
the fall in its revenue. The net working capital cycle elongated in
FY23. Ind-Ra expects the working capital cycle to remain stretched
in FY24 owing to the nature of operations, but it is likely to
reduce slightly over the medium term with faster stock rotation and
lower inventory holding period. The cash and cash equivalents were
insignificant at FYE23.
Modest EBITDA Margin: TTL's EBTIDA margin declined to a modest 4.8%
in FY23 (FY22: 9.8%), owing to lower absorption of fixed costs,
following the decline in revenue, the strategic shift to low-margin
yarn trading from high-margin yarn manufacturing, and the
unprecedented fluctuations in cotton prices. The return on capital
employed declined to 2.8% in FY23 (FY22: 12.5%). In 9MFY24, the
margin increased to 7.89%, supported by the ongoing restructuring
of the business. Ind-Ra expects the margins to have increased on a
yoy basis in FY24, due to the restructuring of its business and
stabilize over the medium term. Any fluctuations in the EBITDA
margin and overall profitability would be a key rating monitorable.
Sale of Gajraula Facility: During FY24, TTL signed a memorandum of
understanding for the sale of its textile unit at Gajraula, Uttar
Pradesh, for INR710 million to M/s Shree Krishna Impex, which is a
partnership firm. The company plans to use the proceeds to prepay
its long-term secured and unsecured loans, and also for setting up
new facilities and ongoing business operations. However, the
company received only INR674 million as of April 2024. The balance
amount is scheduled to be received in May 2024. In FY23, the
company realized around INR163 million from the sale of ginning
mill land and building in Rajula, Gujarat, and a building in Karol
Bagh, Delhi.
Establishing new facility in FY25: TTL is establishing new garment
facility in Kolkata for which the management has set aside the
margin money from the funds received from the sale of Gajraula
facility and the company has also got a term loan of INR120 million
sanctioned by the bank. As per the management, the factory will be
operational and start generating revenue by 4QFY25.
Intense Competition in Textile Industry: Players in the textile
industry face high competition due to the fragmented nature of the
sector and raw material price volatility. Furthermore, cotton
prices in India are regulated through the fixing of a minimum
support price by the government, and cotton players depend on the
price parity. The price of raw cotton also depends on the area
under production, annual yield, international demand-supply
scenario, export quota decided by the government and the previous
year's inventory. Given the company's moderate presence in the
industry, it does not have significant pricing power; hence, the
revenue and profitability are susceptible to movements in
realizations and input costs.
Long Operational Track Record; Experienced Management: The ratings
are supported by nearly five decades of experience of the promoters
of TTL in the textile industry, leading to established
relationships with its customers as well as suppliers.
Liquidity
Stretched: TTL's average utilization of the fund-based limits was
around 98.53% during the 12 months ended March 2024. Furthermore,
the cash credit limits reduced to INR308 million in April 2024
(FY23: INR750 million). The cash flow from operations reduced to
INR63.8 million in FY23 (FY22: INR193.3 million) in line with the
decline in EBITDA, resulting from the fall in the revenue. The net
working capital cycle remained elongated to 246 days in FY23 (FY22:
130 days). The cash and cash equivalents stood at INR4.42 million
at FYE23 (FYE22: INR6.37 million). The company has debt obligations
of INR94.9 million for FY25 and INR92.5 million in FY26. Also,
company prepaid its Indian Bank term loan and guaranteed emergency
credit line facility in March 2024 and April 2024.
Rating Sensitivities
Negative: Substantial deterioration in the scale of operations,
leading to the interest coverage remaining below 1.5 x or
deterioration in the liquidity position, all on a sustained basis,
will be negative for the ratings.
Positive: An improvement in the scale of operations, along with an
improvement in the liquidity position and the credit metrics with
the interest coverage increasing above 2x, all on sustained basis,
will be positive for the ratings.
About the Company
Incorporated in 1978, TTL is a public company domiciled in India.
Its shares are listed with the National Stock Exchange Limited and
BSE Limited. The company has a registered office in Delhi. The
company operates in the textile segment and is engaged in yarn
trading, knitting, and cutting and sewing of textiles products. The
company caters to the domestic and export markets.
TEXLA PLASTICS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Texla
Plastics and Metals Private Limited (Texla) continue to be 'CRISIL
B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.50 CRISIL B+/Stable (Issuer Not
Cooperating)
Term Loan 3.45 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with Texla for
obtaining information through letter and email dated April 19, 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 Texla, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on Texla
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
Texla continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Texla was incorporated in 1990 by Mr Kanwaljit Singh and his wife
Ms Praveen Kaur. The company manufactures plastic moulded
components and dies for consumer appliances, automobiles, and
gardening equipment. Its manufacturing facility is in Ludhiana,
Punjab, and has capacity of 4000 tonne per annum.
THIRUCHY STEELS: CRISIL Keeps B+ Debt Rating in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Thiruchy
Steels (TS) continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with TS for
obtaining information through letter and email dated April 19, 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 TS, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on TS is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of TS
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Chennai-based TS, set up in 1989 by the proprietor Mr B Rajagopal,
trades in iron and steel products like coils, sheets, structural
items etc.
THREE SEASONS: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Three Seasons
Exim Limited (TSEL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 10 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 40 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with TSEL for
obtaining information through letter and email dated April 19, 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 TSEL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on TSEL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
TSEL continues to be 'CRISIL D Issuer Not Cooperating'.
TSEL, incorporated in fiscal 2014, is setting up a unit to process
shrimps and export them. The unit, at East Godavari district,
Andhra Pradesh, is likely to commence operations by April 2021.
TRAVANCORE EARTH: CRISIL Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Travancore
Earth Moving Company (TEMC) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.65 CRISIL D (Issuer Not
Cooperating)
Cash Credit 4 CRISIL D (Issuer Not
Cooperating)
Proposed Fund- 4.35 CRISIL D (Issuer Not
Based Bank Limits Cooperating)
CRISIL Ratings has been consistently following up with TEMC for
obtaining information through letter and email dated April 19, 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 TEMC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on TEMC
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
TEMC continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
TEMC was established in 2008 and is promoted Mr. Joseph. The firm
is engaged in road construction and civil works through contract by
PWD in the state of Kerala.
TRIMURTI FOODTECH: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Trimurti
Foodtech Private Limited (TFPL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL D (Issuer Not
Cooperating)
Funded Interest 0.86 CRISIL D (Issuer Not
Term Loan Cooperating)
Proposed Long Term 2.54 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 0.19 CRISIL D (Issuer Not
Cooperating)
Term Loan 2.14 CRISIL D (Issuer Not
Cooperating)
Working Capital 6.11 CRISIL D (Issuer Not
Term Loan Cooperating)
CRISIL Ratings has been consistently following up with TFPL for
obtaining information through letter and email dated April 19, 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 TFPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on TFPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
TFPL continues to be 'CRISIL D Issuer Not Cooperating'.
TFPL, incorporated in 2007 at Aurangabad, manufactures frozen food,
including jellies, fruit pulp, and snacks. Mr Atul Banginwar, the
promoter, also owns the Pet Pooja chain of restaurants, which it
lets out on franchise basis for selling snacks. The products are
sold both in the domestic and global markets.
VIGHNAHAR SAHAKARI: Ind-Ra Assigns BB+ Loan Rating, Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Shri Vighnahar
Sahakari Sakhar Karkhana Limited's (SVSSKL) bank facilities as
follows:
-- INR2.0 bil. Fund-based working capital limit assigned with
IND BB+/Stable/IND A4+ rating.
Analytical Approach
Ind-Ra has taken a standalone view of SVSSKL to arrive at the
ratings.
Detailed Rationale of the Rating Action
The ratings reflect Ind-Ra's expectations of an increase in
SVSSKL's net leverage in FY25, due to the proposed debt-funded
expansion of its sugar mill, as well as expectations of negative
free cash flow in FY25, which will exert pressure on the entity's
liquidity in the medium term. Furthermore, the entity's inability
to tie up funds from lenders for funding the capex plans could pose
a further threat to liquidity and a decline in production if the
capex is not completed before the onset of the upcoming crushing
season. Although, the agency considers such an event to be
unlikely. The ratings are further constrained by the regulatory
risks in the sugar industry and the recent restrictions imposed by
the government on the production of ethanol from syrup and B-heavy
molasses.
However, the ratings are supported by SVSKKL's long operational
track record, medium scale of operations, which is likely to have
improved in FY24 and will improve further in the medium term led by
the expansion of the distillery segment capacity in FY23 and
synergies from the proposed expansion of the sugar mill capacity in
FY25. The synergies from the capex are likely to have led to a
significant improvement in the EBITDA margin in FY24 and will
continue to do so in the medium term, as well as provide improved
revenue visibility.
List of Key Rating Drivers
Weaknesses
- Net leverage to increase in FY25 due to planned debt-funded
capex
- Free cash flow likely to become negative in FY25 due to large
capex
- Funds for proposed capex yet to be tied up
- Susceptibility of business to regulatory risks in sugar
industry
Strengths
- Integrated nature of operations; established operational track
record
- Likely increase in revenue in medium term due to operational
synergies from distillery expansion and proposed expansion
Detailed Description of Key Rating Drivers
Net Leverage to Increase in FY25 due to Planned Debt-funded Capex:
The credit metrics are likely to have improved significantly in
FY24 due to a further improvement in EBITDA, backed by an increase
in sugar prices during the year. The gross interest coverage
(operating EBITDA/gross interest expense) is likely to have further
increased above 2.25x and the net leverage (Ind-Ra adjusted net
leverage/operating EBITDAR) to have reduced below 3.5x in FY24.
During FY23, the gross interest coverage improved to 1.74x (FY22:
1.14x) owing to an increase in the EBITDA to INR463.82 million
(INR391.96 million), resulting from higher sugar exports during the
year. The net financial leverage also reduced to 5.49x in FY23
(FY22: 6.88x) owing to a decrease in the overall debt to INR2,571.6
million (INR2,702.07 million) with lower utilization of fund-based
working capital limits during the year due to reduced inventory
levels, led by higher sales volumes.
However, Ind-Ra expects the credit metrics to weaken significantly
in FY25 and continue to do so in the medium term as SVSSKL plans to
avail a new term loan of around INR1,500 million during the year to
partly fund the proposed capex, which will enhance the sugar mill's
capacity to 7,500 tons of cane crushed per day (TCD) from 5,000
TCD. The agency expects the net leverage to rise above 4.0x in the
near-to-medium term due to the additional debt proposed to be
availed by the entity.
Free Cash Flow Likely to become Negative in FY25 due to Large
Capex: SVSSKL's free cash flow was impacted significantly in FY23
by the distillery expansion project undertaken by the entity during
the year to enhance its ethanol production capacity to 65 kilo
liters per day (KLPD) from 30 KLPD for the ethanol supply year
2023-24. The free cash flow turned negative to INR483.53 million in
FY23 (FY22: INR88.72 million) due to the capex of INR1,416.95
million (INR230.4 million). The agency expects the free cash flow
to have turned positive in FY24, due to a significant increase in
internal accruals, partly led by synergies from the expansion.
However, Ind-Ra expects the free cash flow to become negative again
in FY25 as the management plans to incur further capex of around
INR2,000 million for the planned sugar mill expansion.
Funds for Proposed Capex Yet to be Tied up: SVSSKL completed its
distillery expansion project in FY23 and the management now plans
to undertake another expansion project at its sugar mill to enhance
the cane crushing capacity by replacing the existing machinery
with new machinery. The management plans to fund around 75% of the
estimated capex costs through term loans and is tying up funds for
the project. Failure to raise the required funds from lenders could
pose significant risks to the timely completion of the project and
could significantly impact its liquidity position. Furthermore, the
expansion project has to be completed before the onset of the
ensuing sugar season (2024-25) and any delay in the completion of
the same due to funding issues could impact the scale of
operations. However, such an event is unlikely as per the agency's
expectations.
Susceptibility of Business to Regulatory Risks in Sugar Industry:
The sugar industry is regulated and vulnerable to government
policies as it is classified as an essential commodity. Besides
setting quotas for the domestic sale of sugar and restricting sugar
exports, the government has implemented various regulations such as
fixing the raw material prices in the form of fair and remunerative
prices as well as implementing restrictions on the diversion of
sugar syrup in the ensuing sugar season (2024-25). All these
factors impact the production and sales of sugar and ethanol,
posing significant uncertainty risks on SVSSKL's scale of
operations.
Integrated Nature of Operations; Established Operational Track
Record: SVSSKL benefits from the synergies of the integrated nature
of its operations. The sugarcane juice syrup as well as the B-heavy
molasses and C-heavy molasses required as raw material by the
distillery unit would be produced in-house by the sugar mill. This
will enable the entity to maximize its profitability in the
distillery segment and also lessen its heavy working capital
requirement, as the sugarcane juice diverted to the distillery will
lead to a reduction in the production, and thus, the inventory of
sugar.
Furthermore, SVSSKL has an operational track record of more than
three decades in the sugar industry with established relationships
with farmers in the region. So far, it has never experienced a
shortage of cane for crushing due to lift irrigation schemes in the
region, which have augmented cane availability.
Likely Increase in Revenue in Medium Term due to Operational
Synergies from Distillery Expansion and Proposed Expansion:
SVSSKL's revenue surged to INR6,357.43 million in FY23 (FY22:
INR4,266.69 million) led by higher sugar sales and an increase in
realization to INR33,636 per metric ton (MT; FY22: INR31,723 per
MT). The average sugar realization is likely to have improved to
around INR35,500 per MT in FY24 due to a surge in sugar prices
during the year. However, as per Ind-Ra, the revenue is likely to
have declined to around INR4,200 million in FY24 due to reduced
volume of sugar sales. The increase in ethanol revenue from the
enhanced distillery capacity has offset the decline in revenue from
the sugar segment to some extent.
Nevertheless, the EBITDA margin improved significantly to around
15% in FY24 due to increased contribution from the high-margin
ethanol business to the overall sales, despite restrictions on the
production of ethanol from syrup and B-heavy molasses. Ind-Ra
expects the EBITDA margin to rise further in the medium term led by
the improved sugar realization. The agency expects planned sugar
mill capex is likely to increase sale of sugar and further increase
the Ethanol production and sales providing better medium and
long-term revenue visibility.
Liquidity
Stretched: SVSSKL's current ratio remained weak at 1.14x in FY23
(FY22: 1.1x), due to reduced inventory levels during the year. The
average maximum utilization of the entity's fund-based limits for
the 12 months ended March 2024 was 40.92%. The cash flow from
operations rose significantly to INR933.42 million in FY23 (FY22:
INR319.12 million), as the net cash conversion cycle improved to
151 days (291 days) with a reduction in the inventory days to 156
(296). However, Ind-Ra expects the cash flow from operations to
have declined in FY24 as the inventory levels are likely to rise
due to a higher-than-estimated sugar production and lower quota
received for the sale of sugar stock, which is likely to increase
the inventory holding period beyond 250 as per the agency's
expectations. SVSSKL had unencumbered cash and cash equivalents of
INR27.03 million at FYE23 (FYE22: INR6 million). It has repayment
obligations of INR344.5 million and INR309.6 million in FY25 and
FY26, respectively, which are likely to be met through internal
accruals.
Rating Sensitivities
Negative: A significant deterioration in the scale of operations, a
lower-than-expected improvement in profitability, further
restrictions on the diversion of sugar syrup and B-heavy molasses,
delay or cost overrun in the proposed capex, further deterioration
in the liquidity or credit metrics with the net leverage rising
above 5.0x, all on a sustained basis, will lead to a negative
rating action.
Positive: Maintaining the scale of operations, easing of
restrictions on the diversion of syrup and B-heavy molasses,
leading to a further rise in the ethanol business, a significant
improvement in liquidity including an improvement in the current
ratio, and an improvement in the credit metrics with the net
leverage remaining below 4.0x, all on a sustained basis, will lead
to a positive rating action.
About the Company
SVSSKL is a co-operative society established in 1984. The entity
has an integrated facility for the manufacturing of sugar,
production of ethanol, and generation of power. SVSSKL has a sugar
mill with an installed capacity of 5,000 TCD and ethanol production
capacity to 65 KLPD. It also has two co-generation plants with a
total installed capacity of 18 megawatts per annum.
WARDHMAN TAKNIKI: CRISIL Keeps B Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shri Wardhman
Takniki Shiksha Samiti, Jabalpur (SWTSS) continue to be 'CRISIL
B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft Facility 6.5 CRISIL B/Stable (Issuer Not
Cooperating)
Term Loan 6.7 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SWTSS for
obtaining information through letter and email dated April 19, 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 SWTSS, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SWTSS
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SWTSS continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
SWTSS was set up by the Jain family in 2006 in Jabalpur, Madhya
Pradesh. The society has one institute, Gyan Ganga College of
Technology, offering several courses in engineering and
management.
=====================
N E W Z E A L A N D
=====================
AAA RETROFIT: Creditors' Proofs of Debt Due on June 6
-----------------------------------------------------
Creditors of AAA Retrofit & Glazing Limited are required to file
their proofs of debt by June 6, 2024, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on May 6, 2024.
The company's liquidator is Brenton Hunt.
ASAD HORTICULTURE: Court to Hear Wind-Up Petition on May 20
-----------------------------------------------------------
A petition to wind up the operations of Asad Horticulture 2018
Limited will be heard before the High Court at Tauranga on May 20,
2024, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on March 26, 2024.
The Petitioner's solicitor is:
Timothy Saunders
Inland Revenue, Legal Services
21 Home Straight
PO Box 432
Hamilton
MACKENZIE COUNTRY: In Liquidation; Claims Deadline Set May 31
-------------------------------------------------------------
The Timaru Herald reports that a Mackenzie company with tyre
businesses in Fairlie and Twizel has been placed in liquidation
with debts of NZD548,750, about half of which is owed to Inland
Revenue.
Mackenzie Country Tyres 2014 Ltd, trading as Carters Tyre Service
in Fairlie and Goodyear Autocare in Twizel, received a demand for
payment relating to Inland Revenue liabilities but was unable to
meet it.
The company was put into liquidation on April 22, 2024, and
liquidators Laing Insolvency Specialists were appointed, according
to The Timaru Herald.
The company is owned by Michael and Emma Derrick, with the former
the sole director.
In their first report, Laing Insolvency said an audit had yet to be
completed and information available had been prepared for the
liquidation only.
The estimated total debt of the company is NZD548,750, of which
NZD261,162.93 was owed to Inland Revenue - much of it related to
GST and employer deductions. Unsecured creditors are owed
NZD190,303.42 and secured debt NZD97,238.78, The Timaru Herald
discloses.
"The liquidators have been advised that difficulties in running the
two operations at some distance, along with the ongoing issues from
Covid contributed to the company's current insolvent position."
Total assets had yet to be determined, but initial enquiries
indicate the company assets comprised three vehicles, a small
amount of stock, accounts receivable and some completed jobs that
had yet to be invoiced to customers.
The premises at Fairlie and Twizel were both leased.
According to The Timaru Herald, liquidator Emma Laing said both
businesses had ceased trading, with Goodyear Autocare at Twizel
closed earlier this year.
The Timaru Herald relates that Ms. Laing said at the time of
liquidation, there were two employees, one of which was director
Michael Herrick. The liquidators had been advised wages and holiday
pay had been paid up to date, but that was to be confirmed.
There were 13 known creditors recorded on the Personal Property &
Securities Register, including Bridgestone NZ, Goodyear & Dunlop
Tyres, Tyres4u and ANZ Bank. Inland Revenue is the only known
preferential creditor and there are 19 known unsecured creditors
which included Inland Revenue, Carters Tyre Service, Blairs
Supertyre Distributors, Brake & Transmission NZ, Repco, Tyremax LP,
CO Tire & Retreading, Radial Imports (NZ) and McKeown Group.
"Indications are that due to the limited assets available and the
level of secured and preferential debt, it is not expected that a
dividend will become available to unsecured creditors," the
liquidators said.
Any creditor wishing to file a claim in the liquidation has until
Friday, May 31 to do so, The Timaru Herald discloses.
A further report, or final report, would be available in the next
six months.
PONE CONTRACTORS: Khov Jones Appointed as Receivers
---------------------------------------------------
Steven Khov and Kieran Jones of Khov Jones on May 8, 2024, were
appointed as receivers of Pone Contractors Limited, Lavinia Pone
and Semisi PonE.
The receivers may be reached at:
Khov Jones Limited
PO Box 302261
North Harbour
Auckland 0751
TRANZKELL 2000: Creditors' Proofs of Debt Due on June 13
--------------------------------------------------------
Creditors of Tranzkell 2000 Limited are required to file their
proofs of debt by June 13, 2024, to be included in the company's
dividend distribution.
The High Court at Auckland appointed Stephen White and Janet
Sprosen of PwC as liquidators on May 3, 2024.
VANDERLAY INDUSTRIES: Court to Hear Wind-Up Petition on May 24
--------------------------------------------------------------
A petition to wind up the operations of Vanderlay Industries
Limited will be heard before the High Court at Auckland on May 24,
2024, at 10:45 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on April 3, 2024.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
===============
P A K I S T A N
===============
PAKISTAN: Downside Risks Remain Exceptionally High, Says IMF
------------------------------------------------------------
Reuters reports that downside risks for the Pakistani economy
remain exceptionally high, the International Monetary Fund (IMF)
said on May 10, in its staff report on the country, ahead of talks
with the fund on a longer term progamme.
An International Monetary Fund mission is expected to visit
Pakistan this month to discuss a new programme, ahead of Islamabad
beginning its annual budget-making process for the next financial
year, Reuters says.
"Downside risks remain exceptionally high. While the new government
has indicated its intention to continue the SBA's policies,
political uncertainty remains significant," said the fund in its
staff report following the second and final review under the
standby arrangement (SBA), Reuters relates.
According to Reuters, the fund added that political complexities
and high cost of living could weigh on policy, adding that policy
slippages, together with lower external financing, could undermine
the narrow path to debt sustainability and place pressure on the
exchange rate.
Reuters relates that the IMF also said higher commodity prices and
disruptions to shipping, or tighter global financial conditions,
would also adversely affect external stability for the
cash-strapped nation.
The fund stressed the need for timely post-program external
financing disbursements.
Pakistan last month completed a short-term $3 billion programme,
which helped stave off sovereign default, but the government of
Prime Minister Shehbaz Sharif has stressed the need for a fresh,
longer term programme, recalls Reuters.
Reuters notes that Pakistan narrowly averted default last summer,
and its $350 billion economy has stabilised after the completion of
the last IMF programme, with inflation coming down to around 17% in
April from a record high 38% last May.
It is still dealing with a high fiscal shortfall and while it has
controlled its external account deficit through import control
mechanisms, it has come at the expense of stagnating growth, which
is expected to be around 2% this year compared to negative growth
last year.
Pakistan is expected to seek at least $6 billion and request
additional financing from the Fund under the Resilience and
Sustainability Trust, Reuters adds.
About Pakistan
Pakistan is a country located in South Asia. It has a coastline
along the Arabia Sea and the Gulf of Oman and is bordered by
Afghanistan, China, India, and Iran. Pakistan's capital is
Islamabad.
As reported in the Troubled Company Reporter-Asia Pacific in
December 2023, Fitch Ratings affirmed Pakistan's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'CCC'. Fitch
typically does not assign Outlooks to sovereigns with a rating of
'CCC+' or below.
=================
S I N G A P O R E
=================
ASSET MANAGEMENT: Creditors' Proofs of Debt Due on June 10
----------------------------------------------------------
Creditors of Asset Management One Singapore Pte. Ltd. are required
to file their proofs of debt by June 10, 2024, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on April 30, 2024.
The company's liquidators are:
Junichi Naganawa
18 Robinson Road
#20-02 18 Robinson
Singapore 048547
HAVE FUN: Placed in Provisional Liquidation
-------------------------------------------
Ellyn Tan Huixian of Mazars Consulting on May 6, 2024, was
appointed as liquidator of Have Fun Serangoon Pte. Ltd.
The liquidator may be reached at:
Ms. Ellyn Tan Huixian
Mazars Consulting
135 Cecil Street
#10-01 Philippine Airlines Building
Singapore 069536
NOBLE DRILLING: Creditors' Proofs of Debt Due on June 10
--------------------------------------------------------
Creditors of Noble Drilling Singapore Pte. Ltd. are required to
file their proofs of debt by June 10, 2024, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on April 30, 2024.
The company's liquidators are:
Lin Yueh Hung
Goh Wee Teck
c/o 8 Wilkie Road
#03-08 Wilkie Edge
Singapore 228095
QUANFA GROUP: Court to Hear Wind-Up Petition on May 24
------------------------------------------------------
A petition to wind up the operations of Quanfa Group Pte Ltd will
be heard before the High Court of Singapore on May 24, 2024, at
10:00 a.m.
Maybank Singapore Limited filed the petition against the company on
May 2, 2024.
The Petitioner's solicitors are:
Adsan Law LLC
300 Beach Road
#26-00 The Concourse
Singapore 199555
QUINTESSENTIAL FOODS: Court Enters Wind-Up Order
------------------------------------------------
The High Court of Singapore entered an order on May 3, 2024, to
wind up the operations of Quintessential Foods Co Pte. Ltd.
Maybank Singapore Limited filed the petition against the company.
The company's liquidators are:
BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
===============
X X X X X X X X
===============
AIR VANUATU: Placed Into Voluntary Liquidation
----------------------------------------------
Reuters reports that the national carrier of the Pacific Island
nation of Vanuatu may be sold to a private operator, liquidator EY
said on May 10, with large numbers of tourists stranded after Air
Vanuatu cancelled flights to Australia and New Zealand.
Reuters relates that the Vanuatu government, which owns the
airline, put the carrier into voluntary liquidation on May 9, a day
after it cancelled international flights, citing extended
maintenance requirements for its aircraft.
"We may end up with some kind of sale of the business to a private
operator," EY Strategy and Transactions Partner Morgan Kelly told a
press conference in Sydney.
As EY assesses how to make the airline's operations sustainable, a
partnership arrangement with another airline could also be
involved, Mr. Kelly added, Reuters relays.
According to Reuters, EY said it was working with the airline's
management to resume normal operations as soon as possible after
safety and maintenance checks, but it could not set a date.
"All flights have been grounded with immediate effect," the carrier
said in a notice on its website.
Many customers have been affected and partner airlines have
suspended codeshare arrangements between Vanuatu and Australia,
Mr. Kelly added.
Reuters relates that EY said its appointment followed a challenging
period for the global aviation industry, including labour
shortages, inflation affecting input costs and credit costs.
Vanuatu has been particularly affected after cyclones disrupted
tourism activity.
The outlook for the airline is positive, despite pressures on the
broader industry, and Air Vanuatu is a "strategically vital
national carrier", EY said in a statement.
The first meeting of creditors is to be set shortly, while the
current management team will stay, it added.
In a statement, Virgin Australia said it would add two flights a
week in May and June between Brisbane and Vanuatu, after the
Australian government asked it to increase capacity, Reuters
reports.
Reuters relates that the airline has also applied to the
International Air Services Commission to increase seat capacity to
Vanuatu, with plans to add seven more services from Australia's
east coast, it added in a statement on May 10.
Australian carrier Qantas Airways said it was supporting codeshare
customers booked onto Air Vanuatu flights.
Fiji Airways has offered seats on its flights to stranded Fijian
nationals holding Air Vanuatu tickets.
Air Vanuatu operates only four planes between the country's islands
- which rely heavily on tourism - and to destinations such as
Australia, New Zealand and other South Pacific islands.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2024. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***