/raid1/www/Hosts/bankrupt/TCRAP_Public/240627.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, June 27, 2024, Vol. 27, No. 129
Headlines
A U S T R A L I A
BELLABOX: To Cease Operations This Month Amid Rising Costs
CROSS LAMINATED: Second Creditors' Meeting Set for July 2
DUAL FOODS: First Creditors' Meeting Set for July 1
HORNSBY & SONS: First Creditors' Meeting Set for July 3
LIBERTY 2024-1: Fitch Assigns 'BBsf' Final Rating to Class F Notes
MARCHANT SIGNS: First Creditors' Meeting Set for July 1
VERMILE PTY: First Creditors' Meeting Set for July 2
C H I N A
RETO ECO-SOLUTIONS: Sets August 5 for 2024 Shareholders' Meeting
SHIMAO GROUP: Wins 4-Week Reprieve to Work Out Debts
I N D I A
ASM TRAXIM: CARE Keeps D Debt Ratings in Not Cooperating Category
BIMBAN INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating
CARRYCON INDIA: Insolvency Resolution Process Case Summary
DODSAL ENTERPRISES: CARE Cuts Rating on INR129.58cr ST Loan to D
EKAM AGRO: CARE Keeps D Debt Rating in Not Cooperating Category
ESSEL GWALIOR: CARE Keeps D Debt Rating in Not Cooperating
GIGEO CONSTRUCTION: Insolvency Resolution Process Case Summary
HARIMAN SEEDS: CARE Keeps B- Debt Rating in Not Cooperating
HIMALAYAN MINERAL: Insolvency Resolution Process Case Summary
JAI JYOTI: CARE Keeps B- Debt Rating in Not Cooperating Category
JAIPRAKASH ASSOCIATES: Offers Improved Settlement Terms to Lenders
KAY VEE: CARE Keeps C Debt Rating in Not Cooperating Category
LAXMI LAL: CARE Assigns B+ Rating to INR1.31cr LT Loan
MOTHERS PRIDE: CARE Keeps D Debt Rating in Not Cooperating
MPS STEELS: CARE Lowers Rating on INR9.18cr LT Loan to D
NASIR ILAHI: CARE Keeps C Debt Rating in Not Cooperating Category
NAVNIT AUTOSPARES: CARE Keeps D Debt Rating in Not Cooperating
SARITA DEVI: CARE Keeps B- Debt Rating in Not Cooperating
SELVE CASHEWS: CARE Keeps B- Debt Rating in Not Cooperating
SHIRPUR GOLD: Admitted for Corporate Insolvency Resolution
SPS AGRONICO: CARE Keeps B- Debt Rating in Not Cooperating
STEEL STOCKHOLDERS: CARE Keeps B- Debt Rating in Not Cooperating
SUYOG ANJANI: CARE Keeps B- Debt Rating in Not Cooperating
TECH IDEAS: Voluntary Liquidation Process Case Summary
VARAD FERTILISERS: CARE Keeps B- Debt Rating in Not Cooperating
VEDANT LANDMARKS: CARE Keeps B- Debt Rating in Not Cooperating
WEAR WELL: CARE Lowers Rating on INR38.29cr LT Loan to D
I N D O N E S I A
MEDCO ENERGI: S&P Upgrades ICR to 'BB-', Outlook Stable
M O N G O L I A
DEVELOPMENT BANK OF MONGOLIA: Fitch Affirms 'B' IDR, Outlook Stable
N E W Z E A L A N D
HANHUI INTERNATIONAL: Creditors' Proofs of Debt Due on July 21
HARMONEY NZ 2023-1: Moody's Raises Rating on Class F Notes to Ba3
OCHO LIMITED: Avoids Liquidation; Ex-Director to Prepare Plan
SHAN TRANSPORT: Court to Hear Wind-Up Petition on July 12
STRICKLY PROPERTIES: Court to Hear Wind-Up Petition on Aug. 2
SYNTHASE BIOTECH: Creditors' Proofs of Debt Due on Aug. 30
TECH TALENT: Steven Khov and Kieran Jones Appointed as Receivers
P H I L I P P I N E S
9F LENDING: SEC Issues Cease-and-Desist Orders
S I N G A P O R E
ALGORI CAPITAL: Creditors' Proofs of Debt Due on July 25
FLOATATION PTE: Court to Hear Wind-Up Petition on July 5
NATURE ONE: Court to Hear JM Order Petition on July 4
NEW LIFE: Court to Hear Wind-Up Petition on July 5
TARGA SOLUTION: Commences Wind-Up Proceedings
S O U T H K O R E A
[*] BOK Warns of Developers' Debt Risks as Profits Shrink
V I E T N A M
VIETNAM AIR: Risks Insolvency if State-Backed Loan Isn't Extended
- - - - -
=================
A U S T R A L I A
=================
BELLABOX: To Cease Operations This Month Amid Rising Costs
----------------------------------------------------------
SmartCompany reports that Bellabox, a skincare and beauty product
subscription service that pioneered the model in Australia, said it
will cease operations this month.
In a statement shared across social media on June 20, Bellabox said
economic challenges over the past year drove the decision to wind
down, SmartCompany relates.
"Operating a subscription business is no easy feat, and with the
current retail landscape being particularly tough, the additional
demands and rising costs have made it increasingly challenging for
our small Australian-owned business to stay afloat," the business
said.
Bellabox is sending its final subscription boxes, with the business
"committed to ensuring you receive your boxes as planned".
Founded in 2011 by sisters Emily and Sarah Hamilton, Bellabox was
an early competitor in Australia's booming beauty box subscription
market.
Emulating overseas players like Birchbox, Bellabox operated on two
fronts: as a consumer-facing business allowing subscribers to try a
wide variety of products, and as a marketing channel for those very
same brands, SmartCompany notes.
"We tell the brands we're a marketing and sales service, and the
channel we use is our subscription boxes and our online store,"
Sarah Hamilton told SmartCompany in 2013.
"We're not a glamorous beauty company. We're logistics, we're
marketing and we're all the other facets."
According to SmartCompany, the brand outlived roughly a dozen
domestic competitors within its first two years, and in 2013
secured a AUD1.3 million investment from parties including Square
Peg Capital, Apex Capital, and Monash Private Capital.
By the end of that year, Bellabox boasted the delivery of 10,000
boxes a month.
The same year, the Hamiltons co-founded their own skincare label,
Sand & Sky; Sarah Hamilton would go on to co-found the popular
haircare line STRAAND in 2023.
Enticed by Bellabox's success, Allure Media, then owned by Fairfax
Media, acquired half of the business in 2014 for AUD3 million,
SmartCompany notes.
CROSS LAMINATED: Second Creditors' Meeting Set for July 2
---------------------------------------------------------
A second meeting of creditors in the proceedings of Cross Laminated
Offsite Solutions Pty Ltd has been set for July 2, 2024 at 11:00
a.m. at Level 11, 385 Bourke Street in Melbourne and via virtual
meeting technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by June 28, 2024 at 5:00 p.m.
Shane Justin Cremin and Brent Leigh Morgan of Rodgers Reidy were
appointed as administrators of the company on May 27, 2024.
DUAL FOODS: First Creditors' Meeting Set for July 1
---------------------------------------------------
A first meeting of the creditors in the proceedings of Dual Foods
Pty Ltd will be held on July 1, 2024 at 3:00 p.m. via electronic
means.
Philip Newman of PCI Partners was appointed as administrator of the
company on June 19, 2024.
HORNSBY & SONS: First Creditors' Meeting Set for July 3
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Hornsby &
Sons Haulage Pty Limited will be held on July 3, 2024 at 10:00 p.m.
via teleconference only.
Mohammad Najjar of Vanguard Insolvency Australia was appointed as
administrator of the company on June 23, 2024.
LIBERTY 2024-1: Fitch Assigns 'BBsf' Final Rating to Class F Notes
------------------------------------------------------------------
Fitch Ratings has assigned final ratings to Liberty Series 2024-1
Auto Trust's pass-through floating-rate notes. The notes are backed
by a pool of first-ranking Australian automotive loan receivables
originated by Liberty Financial Pty Ltd. The notes are issued by
Liberty Funding Pty Limited in its capacity as issuer of Liberty
Series 2024-1 Auto Trust, which is a separate and distinct trust
created under a master trust deed.
The final ratings on the class C and E notes are one notch higher
than the expected ratings. This is due to the reduction in the
transaction's weighted-average (WA) margin from the indicative WA
margin previously modelled, which increases the excess spread
available to reimburse losses.
Entity/Debt Rating Prior
----------- ------ -----
Liberty Series
2024-1 Auto Trust
A AU3FN0088308 LT AAAsf New Rating AAA(EXP)sf
B AU3FN0088316 LT AAsf New Rating AA(EXP)sf
C AU3FN0088324 LT A+sf New Rating A(EXP)sf
D AU3FN0088332 LT BBB+sf New Rating BBB+(EXP)sf
E AU3FN0088340 LT BBB-sf New Rating BB+(EXP)sf
F AU3FN0088357 LT BBsf New Rating BB(EXP)sf
G AU3FN0088365 LT NRsf Ne w Rating NR(EXP)sf
TRANSACTION SUMMARY
The total collateral pool at the 3 April 2024 cut-off date was
AUD850 million, increased from the AUD650 million at the 12 June
2024 expected rating. The pool consisted of 21,862 receivables with
a WA seasoning of 7.7 months, WA remaining maturity of 62.9 months
and an average contract balance of AUD38,880.
KEY RATING DRIVERS
Stress Commensurate with Ratings: Fitch has assigned base-case
default expectations and 'AAAsf' default multiples for consumer
loans and commercial loans. Its default assumptions are 4.0% and
4.5%, respectively, for each sub-pool. The 'AAAsf' default
multiples are 5.75x and 5.50x, respectively. The recovery base case
is 50.0%, with a 'AAAsf' recovery haircut of 40.0% across both
sub-pools. The weighted-average (WA) base-case default assumption
is 4.1% and the 'AAAsf' default multiple is 5.7x.
The portfolio performance is supported by Australia's continued
economic growth and tight labour market, despite rapid interest
rate hikes during 2022-2023. GDP growth for the year ended March
2024 was 1.1%, with unemployment of 4.0% in May 2024. Fitch
forecasts that economic conditions will stabilise in 2024,
projecting GDP growth of 1.2% and a slight increase in unemployment
to 4.2%. This reflects Fitch's anticipated effects of restrictive
monetary policy and persistent inflation continuing to hinder
domestic demand.
Longer Default Definition: Liberty does not define a default
according to a certain number of days a loan has been in arrears.
It instead recognises default when it views that the loan can no
longer be serviced, which averaged around 250 days. This is longer
than other Australian transactions rated by Fitch, which typically
define loans in arrears for more than 120 days as being in default.
In order to avoid the choice of definition having an undue impact
on Fitch's stressed base case expectation, Fitch has derived higher
default multiples and lower recovery haircuts.
Structural Risks Addressed: Fitch's cash flow analysis incorporates
the transaction's structural features and tests each note's
robustness by stressing default and recovery rates, prepayments,
interest-rate movements and default timing. All rated notes passed
the relevant rating stresses. The class A to F notes will receive
principal repayments pro rata upon satisfaction of step-down
requirements. The percentage of credit enhancement provided by the
G notes will increase as the A to F notes amortise.
Counterparty Risks Addressed: Counterparty risk is mitigated by
documented structural mechanisms that ensure remedial action takes
place should the ratings of the swap providers or transaction
account bank fall below a certain level. The transaction includes
an interest-rate swap with a fixed schedule, with 0% prepayment
assumption. The swap is expected to be rebalanced every month,
depending on the level of prepayments and defaults, and hence the
transaction is modelled as fully hedged at all times.
Low Operational and Servicing Risk: All receivables were originated
by Liberty Financial Pty Ltd, which demonstrated adequate
capability as originator, underwriter and servicer. Servicer
disruption risk is mitigated by back-up servicing arrangements. The
nominated standby servicer is Perpetual Trustee Company Limited.
Fitch undertook an operational review and found that the operations
of the originator and servicer were comparable with those of other
auto lenders.
No Residual Value Risk: There is no residual value exposure in this
transaction. However, there is a small exposure to balloon-payment
loans.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Transaction performance may be affected by changes in market
conditions and the economic environment. Weakening asset
performance is strongly correlated with increasing levels of
delinquencies and defaults that could reduce the credit enhancement
available to the notes.
Downgrade Sensitivities
Unanticipated increases in the frequency of defaults and decreased
recoveries on defaulted receivables could produce loss levels
higher than Fitch's base case, and are likely to result in a
decline in credit enhancement and remaining loss-coverage levels
available to the notes. Decreased credit enhancement may make
certain note ratings susceptible to negative rating action,
depending on the extent of the coverage decline. Hence, Fitch
conducts sensitivity analysis by stressing a transaction's initial
base-case assumptions; these include increasing WA defaults and
decreasing the WA recovery rate.
The rating sensitivity section provides insight into the
model-implied sensitivities the transaction faces when assumptions
- defaults or recoveries - are modified, while holding others
equal. The modelling process uses the modification of default and
loss assumptions to reflect asset performance in up and down
environments. The results should only be considered as one
potential outcome, as the transaction is exposed to multiple
dynamic risk factors.
Notes: A / B / C / D / E / F
Rating: AAAsf / AAsf / A+sf / BBB+sf / BBB-sf / BBsf
10% increase in defaults: AAAsf / AA-sf / Asf / BBB+sf / BB+sf /
BB-sf
25% increase in defaults: AAAsf / A+sf / A-sf / BBBsf / BBsf /
B+sf
50% increase in defaults: AA+sf / Asf / BBBsf / BB+sf / BB-sf /
Bsf
10% decrease in recoveries: AAAsf / AAsf / Asf / BBB+sf / BB+sf /
BB-sf
25% decrease in recoveries: AAAsf / AA-sf / Asf / BBBsf / BBsf /
BB-sf
50% increase in recoveries: AAAsf / A+sf / A-sf / BBB-sf / BBsf /
Bsf
10% increase in defaults & 10% decrease in recoveries: AAAsf /
AA-sf / A-sf / BBBsf / BBsf / BB-sf
25% increase in defaults & 25% decrease in recoveries: AA+sf / Asf
/ BBB+sf / BBB-sf / BB-sf / Bsf
50% increase in defaults & 50% increase in recoveries: AA-sf /
BBB+sf / BB+sf / BB-sf / B-sf / below Bsf
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Economic conditions, loan performance and credit losses that are
better than Fitch's baseline scenario or sufficient build-up of
credit enhancement that would fully compensate for credit losses
and cash flow stresses commensurate with higher rating scenarios,
all else being equal.
Notes: A / B / C / D / E / F
Rating: AAAsf / AAsf / A+sf / BBB+sf / BBB-sf / BBsf
10% decrease in defaults and 10% increase in recoveries AAAsf /
AA+sf / AA-sf / Asf / BBBsf / BB+sf
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Fitch sought to receive a third-party assessment conducted on the
asset portfolio information, but none was made available to Fitch
for this transaction.
As part of its ongoing monitoring, Fitch conducted a review of a
small targeted sample of the originator's origination files and
found the information contained in the reviewed files to be
adequately consistent with the originator's policies and practices
and the other information provided to the agency about the asset
portfolio.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis, according to its applicable rating methodologies,
indicates that it is adequately reliable.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
MARCHANT SIGNS: First Creditors' Meeting Set for July 1
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Marchant
Signs & Engraving Pty Ltd will be held on July 1, 2024 at 2:00 p.m.
via virtual meeting.
Robert William Hutson of KordaMentha was appointed as administrator
of the company on June 19, 2024.
VERMILE PTY: First Creditors' Meeting Set for July 2
----------------------------------------------------
A first meeting of the creditors in the proceedings of Vermile Pty.
Limited will be held on July 2, 2024 at 11:00 a.m. via
videoconference.
Sam Kaso, Catherine Conneely and Daniel P Juratowitch of Cor Cordis
were appointed as administrators of the company on June 20, 2024.
=========
C H I N A
=========
RETO ECO-SOLUTIONS: Sets August 5 for 2024 Shareholders' Meeting
----------------------------------------------------------------
ReTo Eco-Solutions, Inc. announced that it plans to hold its 2024
Annual Meeting of Shareholders on August 5, 2024 (Beijing Time).
Shareholders as of the record date, close of business on June 20,
2024, will be entitled to vote at the Meeting.
The Meeting time and location, the proposals for the shareholders
to consider at the Meeting and other information of the Meeting
will be set forth in the Company's proxy statement for the Meeting
to be filed with the Securities and Exchange Commission at a later
date.
About ReTo
Beijing, China-based ReTo Eco-Solutions, Inc. manufactures building
materials. The Company produces abrasives, asbestos, nonmetallic
mineral products, concretes, bricks, pavers, and tiles. ReTo
Eco-Solutions markets its products throughout China.
As of December 31, 2023, the Company has $25.2 million in total
assets, $20.4 million in total liabilities, and $4.9 million in
total shareholders' equity.
Irvine, Calif.-based YCM CPA, Inc., the Company's auditor since
2021, issued a "going concern" qualification in its report dated
May 15, 2024, citing that the Company recorded an accumulated
deficit as of December 31, 2023, and the Company currently has net
working capital deficit, continued net losses and negative cash
flows from operations. These conditions raise substantial doubt
about the Company's ability to continue as a going concern.
SHIMAO GROUP: Wins 4-Week Reprieve to Work Out Debts
----------------------------------------------------
South China Morning Post reports that Shimao Group Holdings has
been given a four-week reprieve by a Hong Kong court, giving it
more time to secure lenders' approval for its debt restructuring
proposal, amid a rise in the number of creditor-led liquidation
petitions.
According to the Post, Justice Jack Wong Kin-tong on June 25
adjourned the case to July 31, in the first hearing since China
Construction Bank (Asia) filed a liquidation petition in April
after Shimao failed to repay its dues of HK$1.58 billion (US$202
million).
The decision made by Hong Kong court followed "a consensual
application for an adjournment" filed by Shimao and the petitioner,
a company filing to the Hong Kong exchange showed.
The Post relates that Shimao said in the filing that the company
and its advisers are "actively advancing discussions with
creditors" regarding the restructuring proposal. The company said
it had extended a deadline for the early consent fee, or fee paid
to creditors as an incentive to support its proposal, to 5:00 p.m.
local time on July 31.
The Post notes that the cash-strapped developer is seeking to
restructure its US$11.7 billion worth of offshore debt and avoid
liquidation. It put forward an initial restructuring proposal on
March 25, in which it presented four options including an offer of
short-term and long-term notes with an aggregate principal amount
of a maximum US$4 billion.
In a filing to the Hong Kong stock exchange in April, Shimao said
it "vigorously" opposes the winding-up petition.
About Shimao Group
China-based Shimao Group Holdings Ltd, formerly Shimao Property
Holdings Ltd, is an investment holding company principally engaged
in the sale of properties. The Company operates its business
through four segments. The sales of Properties segment is mainly
engaged in the development of residential real estate. The Property
Management Income and Others is mainly engaged in property
management. The Hotel Operation Income segment is mainly engaged in
hotel operations. The Commercial Properties Operation Income
segment is mainly engaged in the development, investment and
operation of commercial, office and industrial park property
projects.
As reported in the Troubled Company Reporter-Asia Pacific in July
2022, Shimao Group has missed the interest and principal payment of
a US$1 billion offshore bond due on July 3, 2022.
=========
I N D I A
=========
ASM TRAXIM: CARE Keeps D Debt Ratings in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of ASM Traxim
Private Limited (ATPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 45.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 5.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated May 5, 2023,
placed the rating(s) of ATPL under the 'issuer non-cooperating'
category as ATPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. ATPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 20, 2024, March 30, 2024, April 9, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
ASM Traxim Pvt. Ltd. (ATPL), incorporated in 2005, is a closely
held company engaged in trading of almonds, poppy seeds and spices
like clove, cinnamon, cumin etc. The company sources almonds
domestically and sells in the domestic market to wholesalers
through brokers. The company also sources a very small percentage
of almonds through imports from USA.
BIMBAN INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Bimban
Industries Private Limited (BIPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated April 7, 2023,
placed the rating(s) of BIPL under the 'issuer non-cooperating'
category as BIPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. BIPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 21, 2024, March 2, 2024, March 12, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Bimban Industries Private Limited (BIPL) formerly known as
Hyderabad Polyplast Marketing Private Limited was established in
November 2010 by Mr. Ramesh Agarwal and Mr. Shiv Prasad Sharma. The
company did not commence any operation and was idle in the initial
years. The company was taken over in the name of BIPL from the year
2014 by Mrs. Sujata Ganeriwala who is the managing director. The
commercial operations commenced in 2015. The other directors
include Mr. Shwetaank Ganeriwala, Mr. N. Srinivas. The registered
office and the factory is located in Kolkata and Bangalore
respectively. BIPL is engaged in manufacture of tyre cord fabric
which is a raw material for tyre manufacturing. The company is into
manufacturing customer specific cord fabrics. The company imports
synthetic yarns from suppliers in Indonesia and China and sells the
finished product in domestic as well as export market i.e, in
Srilanka Tunisia etc.
CARRYCON INDIA: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Carrycon India Limited
A-128 Mohammadpur, Bhikaji Cama Place
New Delhi DL 110022 India
Insolvency Commencement Date: June 4, 2024
Estimated date of closure of
insolvency resolution process: December 1, 2024
Court: National Company Law Tribunal, Ahmedabad Bench
Insolvency
Professional: Suman Kumar Verma
Plot No. WZ-D-9, KH. No. 83/14,
Gali No. 5, Mahavir Enclave,
Sulabh International South West,
National Capital Territory of Delhi-110045
E-mail: cirp.cil@gmail.com
Last date for
submission of claims: June 18, 2024
DODSAL ENTERPRISES: CARE Cuts Rating on INR129.58cr ST Loan to D
----------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Dodsal Enterprises Private Limited (DEPL), as:
Amount
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 105.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE C; Stable
Short Term Bank 129.58 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
Under ISSUER NOT COOPERATING
Category and Revised from
CARE C; Stable/CARE A4
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated April 4, 2023,
placed the rating(s) of DEPL under the 'issuer non-cooperating'
category as DEPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. DEPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 18, 2024, February 28, 2024, March 9, 2024 and June 18,
2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of Dodsal Enterprises
Private Limited (DEPL) have been revised on account of delays in
debt servicing recognised from lender's feedback.
Dodsal Enterprises Private Limited (DEPL), a closely held company
formerly known as Dodsal Engineering & Construction Pvt Ltd till
August 2009, belongs to the Dubai-based Dodsal group. DEPL was
established in 1948 to carry out the engineering and construction
contracts (EPC Division) in India and later diversified into
business such as Casual Dining Restaurant (Food Division) and
Trading (Agency Division). The food business was sold to Samara
Capital (Private Equity) in September 2015.
EKAM AGRO: CARE Keeps D Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Ekam Agro
Private Limited (EAPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 13.98 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated May 5, 2023,
placed the rating(s) of EAPL under the 'issuer non-cooperating'
category as EAPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. EAPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 20, 2024, March 30, 2024, April 9, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Ekam Agro Private Limited (EAPL) is a private limited company
incorporated in November, 2012 and is managed by Mr Harish Kumar
Kalra, Ms Shilpa Kasrija, Ms Rashee Angi and Mr Vipul Kalra.
However, the company commenced operations in November, 2014. EAPL
is engaged in the refining of edible oils such as rice bran oil,
mustard oil, cotton seed oil, at its processing facility located in
Muktsar (Punjab). EAPL has two associate concerns, namely,
Evershine Solvex Private Limited and Mithan Lal Kalra Rice Mills
(MKRM). ESPL is engaged in extraction of rice bran oil since 1983.
MKRM is a partnership firm engaged in rice milling since 1977.
ESSEL GWALIOR: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Essel
Gwalior Shivpuri Toll Roads Private Limited (EGSTRPL) continues to
remain in the 'Issuer Not Cooperating ' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 1,090.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated April 28, 2023,
placed the rating(s) of EGSTRPL under the 'issuer non-cooperating'
category as EGSTRPL had failed to provide information for
monitoring of the rating and had not paid the surveillance fees for
the rating exercise as agreed to in its Rating Agreement. EGSTRPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated March 13, 2024, March 23, 2024, April 2, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in October 13, 2011, Essel Gwalior Shivpuri Toll Roads
Private Ltd (EGSTRPL) is a Special Purpose Vehicle (SPV) promoted
by Essel Infraprojects Limited (EIL). The SPV is formed to
undertake four laning of the existing Gwalior - Shivpuri section of
NH3 [from 15.600 km of NH-75 to 236.000 km of NH3 (approx. 125.3 km
stretch)] in state of Madhya Pradesh under NHDP phase IV on Design,
Build, Finance, Operate and Transfer (DBFOT) pattern.
GIGEO CONSTRUCTION: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Gigeo Construction Company Private Limited (Under CIRP)
5/1, Amar Palace, West Central Road
Opp. Yashwant Stadium, Dhantoli,
Nagpur, Maharashtra, India, 440012
Insolvency Commencement Date: June 4, 2024
Estimated date of closure of
insolvency resolution process: December 1, 2024
Court: National Company Law Tribunal, Mumbai Bench
Insolvency
Professional: Ritesh Raghunath Mahajan
B-203 Devgiri, Ganeshmala, Sinhagad Road,
Pune- 411030, Maharashtra
E-mail: riteshmahajancs@gmail.com
E-mail: gigeocirp@gmail.com
Representative of
creditors in a class: Mr. Charudutt Pandhrinath Marathe
Mr. Shashant Sudhakar Yeola
Mr. Rushikesh Subhash Kanhed
Last date for
submission of claims: June 21, 2024
HARIMAN SEEDS: CARE Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Hariman
Seeds (HS) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated May 16, 2023,
placed the rating(s) of HS under the 'issuer non-cooperating'
category as HS had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. HS continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 31, 2024, April 10, 2024, April 20, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Sitarganj (Uttarakhand) based Hariman Seeds (HS) is a partnership
firm and was established in October, 2017. The commercial operation
was expected to start from February, 2019, and is currently being
managed by Mr Amit Kumar Agarwal, Mr Rahul Agarwal and Mr Harish
Agarwal. HMS procures paddy from local grain markets through open
market situated locally. HMS is primarily targeting sells its
product through brokers and commission agents in Northern India
viz. Uttarakhand, export to Africa, UAE to wholesalers, traders.
The procurement of paddy normally depends on moisture content and
portion of rice in paddy, after which it is dried and polished.
HIMALAYAN MINERAL: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Himalayan Mineral Waters Private Limited
Registered Office:
404, 4th Floor, Divine Apartments,
Near S, Tans School Jadugar Road, Roorkee,
Haridwar, Uttarakhand-India 247667
Principal Office:
1/1, Industrial Area, Selakui Dehradun,
Uttarakhand, India, 248001
Insolvency Commencement Date: June 3, 2024
Estimated date of closure of
insolvency resolution process: November 30, 2024
Court: National Company Law Tribunal, Allahabad Bench
Insolvency
Professional: Bhoopesh Gupta
645A/533B, Janki Vihar Colony,
Sector I, Prabhat Chauraha,
Jankipuram, Lucknow,
Uttar Pradesh-226031
E-mail: cabhoopesh@rediffmail.com
8/28, 3rd Floor, W.E.A., Abdul Aziz Road,
Karol Bagh, New Delhi 110005
E-mail: cirp.hmwpl@gmail.com
Last date for
submission of claims: June 18, 2024
JAI JYOTI: CARE Keeps B- Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Jai Jyoti
Texo Fab (JJTF) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.49 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated May 16, 2023,
placed the rating(s) of JJTF under the 'issuer non-cooperating'
category as JJTF had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. JJTF continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 31, 2024, April 10, 2024, April 20, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Jai Jyoti Texo Fab (JJTF) was established in April, 2012 as a
proprietorship firm by Smt. Raksha Rani. JJTF is presently engaged
in manufacturing of polar fleece blankets and polyester fabric at
its manufacturing facility located in Panipat, Haryana. The firm
undertakes in-house dyeing and stitching of these blankets and
fabric. The polyester fabric manufactured by firm is used as
captive consumption for manufacturing of polar fleece blankets.
JAIPRAKASH ASSOCIATES: Offers Improved Settlement Terms to Lenders
------------------------------------------------------------------
The Economic Times of India reports that Jaiprakash Associates Ltd
(JAL) has offered a revised one-time settlement, or OTS, which
includes sale of its assets to Dalmia Cement and INR500-crore
upfront deposit, to its lenders.
According to ET, the debt-ridden construction and infrastructure
company - which was admitted for insolvency resolution proceedings
earlier this month - informed the National Company Law Appellate
Tribunal (NCLAT) on June 24 that it has revised its offer after the
appellate tribunal asked it to consider a higher amount of deposit.
JAL has proposed an additional deposit of INR300 crore besides the
INR200 crore already furnished, its counsel Abhishek Manu Singhvi
told the tribunal in a submission, ET relays. It will deposit
another INR150 crore arranged through its internal sources within
12 weeks of the OTS approval, he said.
The company has also expedited the schedule for redemption of
optionally convertible debentures, which covers INR6,000 crore.
Regarding the asset sale to Dalmia Cement, Singhvi said the latter
has offered INR2,150 crore to take over JAL's cement business and
that the entire sale proceeds will go to lenders, ET relays.
However, the asset sale is stuck as the lenders need to issue a
release document for the sale to conclude successfully.
About Jaiprakash Associates
Jaiprakash Associates Ltd (JAL) is the flagship company of the
Jaypee group and is engaged in engineering and construction,
cement, real estate and hospitality businesses. JAL was one of the
leading cement manufacturers with an installed capacity of ~28
million tonnes per annum (mtpa) and under implementation capacity
of ~5 mtpa on a consolidated basis as on March 31, 2018. JAL is
also engaged in the construction business in the field of civil
engineering, design and construction of hydro-power, river valley
projects. JAL is also undertaking power generation, power
transmission, real estate, road BOT, healthcare and fertilizer
businesses through its various subsidiaries/SPVs.
JAL featured in Reserve Bank of India's second list of at least 26
defaulters with which it wants creditors to start the process of
debt resolution before initiating bankruptcy proceedings.
In September 2018, ICICI Bank had filed an insolvency petition
against JAL under Section 7 of IBC.
On June 3, 2024, the Allahabad bench of National Company Law
Tribunal (NCLT) admitted the insolvency plea filed by ICICI Bank.
The tribunal also appointed Bhuvan Madan as Interim Resolution
Professional of JAL after suspending the board of the company.
KAY VEE: CARE Keeps C Debt Rating in Not Cooperating Category
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Kay Vee
Airjets (KVA) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.76 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 0.40 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated April 25, 2023,
placed the rating(s) of KVA under the 'issuer non-cooperating'
category as KVA had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. KVA continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 10, 2024, March 20, 2024, March 30, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Kay Vee Airjets (KVA) was established by Mr. E. Venkatesan,
Managing Partner as a partnership firm along with the other
partners namely Mr. M. Kanishkan and Mr. Deepika Kanishkan. KVA is
engaged in in manufacturing of grey fabric with an installed
capacity to produce 3, 50,000 meters per month. KVA uses 40 Air Jet
looms to produce gray fabric. The firm commenced operations from
October 2018.
LAXMI LAL: CARE Assigns B+ Rating to INR1.31cr LT Loan
------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Shri
Laxmi Lal Patel (SLLP), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 1.31 CARE B+; Stable Assigned
Facilities
Long Term Bank 8.00 CARE B+; Stable Rating removed
Facilities from ISSUER NOT COOPERATING
category and Revised from
CARE B-; Stable
Short Term Bank 12.00 CARE A4 Rating removed from
Facilities ISSUER NOT COOPERATING category
And reaffirmed
Rationale and key rating drivers
The ratings assigned to the bank facilities of SLLP continue to be
constrained on account of its small scale of operations, high
geographical and customer concentration, stretched liquidity and
presence in a highly fragmented and competitive industry. The
ratings, however, continue to derive strength from established
track record of operations of the firm with reputed clientele,
healthy profitability and moderate solvency position.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Growth in order book position and timely execution of the same
resulting in increase in its scale of operations while maintaining
its profitability on a sustained basis.
Negative factors
* Decline in scale of operations or lower than envisaged cash
accruals on sustained basis.
* Deterioration in capital structure beyond 1.50x owing to high
debt or withdrawal of capital by the proprietor.
* Deterioration in liquidity position owing to delay in payment
from its customers.
Analytical approach: Standalone
Outlook: Stable
CARE Ratings Limited (CARE Ratings) believes that the firm will
continue to benefit from its experienced proprietor in the
construction industry.
Detailed description of the key rating drivers:
Key weaknesses
* Small scale of operations with high geographical and customer
concentration albeit comfortable profitability: SLLP achieved total
operating income (TOI) of INR36.06 crores in FY24 (Prov.) as
against INR46.78 crore in FY23. The decline in scale of operations
was on account of delay in execution of projects due to non-receipt
of funds from the government authorities. However, operating
profitability marked by PBILDT margin stood comfortable at 19.57%
in FY24 and remained healthy over the past 3 years. In line with
the PBILDT margin, the PAT margin stood comfortable at 5.02% in
FY24 (4.64% in FY23). The client base of the firm is skewed towards
government departments in Rajasthan. Further, the firm has remained
focused on the road segment which makes it dependent on
opportunities only in the road sector. Moreover, the firm being a
regional player, all the projects are executed in Rajasthan (near
Udaipur) only which also reflects geographical concentration risk.
* Presence in a highly competitive industry: SLLP operates in an
intensely competitive construction industry with presence of large
number of contractors. With low counterparty credit risk and a
relatively stable payment track record of projects funded by
government bodies, these EPC projects awarded by the State
Government are lucrative for all the contractors and hence are
highly competitive. Thus, aggressive bidding by the players limits
the profitability. Additionally, continued increase in execution
challenges including delay in land acquisition, regulatory
clearances, aggressive bidding, interest rate risk and delay in
project due to environmental clearance are other external
factors that affect the credit profile of industry players.
Key strengths
* Established track record of operations of the firm with reputed
clientele: The firm is an 'AA' class approved contractor with
Public Works Department (PWD), Rajasthan and is eligible to
participate in contracts of any amount pertaining to construction
work of roads. Being present in the industry since 1990, it has an
established track record of operations in the civil construction
industry and has long-standing relationship with PWD, Rajasthan
from where it secures its contracts. Moreover, it owns most of the
machinery and equipment it required for project execution to
facilitate efficient deployment of the resources and timely
execution of projects. The overall activities of SLLP are managed
by Mr. Laxmi Lal Patel, Proprietor, who has more than three decades
of experience in the industry.
* Moderate solvency position: As on March 31, 2024, SLLP had a
moderate capital structure with overall gearing of 0.96x on a
modest net worth base of INR23.89 crore. Furthermore, the debt
coverage indicators were also moderate with PBILDT interest
coverage of 2.93x and total debt/ GCA of 4.93x in FY24.
Liquidity: Stretched
Liquidity of SLLP remained stretched marked by tightly matching
gross cash accruals to term loan repayments, and high average
utilisation of its fund-based limits at 97% for past 12 months
ending April 2024. Also, there were some instances of overdrawing
in cash credit account over the past 09 months which were rectified
in a maximum of 15 days. The operating cycle stood at 149 days in
FY24 (Prov.) as against 88 days in FY23 owing to higher collection
period and increase in work in progress from INR8.62 crores in FY23
to INR13.17 crores in FY24. Further, the cash flow from operations
(CFO) stood at INR3.97 crores in FY24. SLLP had cash and bank
balance of INR1.97 crores as on March 31, 2024.
Udaipur (Rajasthan) based Shri Laxmi Lal Patel was formed in 1990
as a proprietorship concern by Mr. Laxmi Lal Patel. SLLP is mainly
engaged in the business of construction, installation and
commissioning of water supply lines and construction & repair of
roads as well as planning, designing, engineering, erection,
installation and commissioning of various projects for government
departments. SLLP is registered 'AA' class (highest in the scale of
AA to E) approved contractor with Public Works Department (PWD),
Rajasthan.
MOTHERS PRIDE: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Mothers
Pride Dairy India Private Limited (MPDIPL) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 28.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated May 5, 2023,
placed the rating(s) of MPDIPL under the 'issuer non-cooperating'
category as MPDIPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. MPDIPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 20, 2024, March 30, 2024, April 9, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Mothers Pride Dairy India Private Limited (MPDIPL) was incorporated
in September 2014 and is primarily engaged in manufacturing of milk
and milk products like Desi Ghee, Paneer, Butter milk, yogurt,
flavoured milk and processed milk. The promoters of the company are
Mr Anant Kumar Choudhary, Mrs. Shalini Choudhary and Ms. Sonia
Gandhi. Mr Anant Kumar Choudhary is also one of the promoters of
SBS Transpole Logistics Private Limited engaged in logistics and
have an experience of more than 10 years. They are supported by
highly qualified and experienced management team with understanding
of the dairy sector. The company has set up a milk processing plant
at Anandpur, Bahjoi, Sambhal (U.P.) The company has commenced
operations from Oct 2016 and the products are marketed under the
brand "freshmen's valley".
MPS STEELS: CARE Lowers Rating on INR9.18cr LT Loan to D
--------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of MPS
Steels Private Limited (MSPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.18 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE B-; Stable
CARE Ratings Ltd. had, vide its press release dated April 11, 2023,
placed the rating(s) of MPS under the 'issuer non-cooperating'
category as MSPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. MSPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 25, 2024, March 6, 2024, March 16, 2024, June 19, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating. Users of this rating (including investors,
lenders and the public at large) are hence requested to exercise
caution while using the above rating(s). The ratings assigned to
the bank facilities of MSPL have been revised on account of delays
in debt servicing recognized from publicly available information
i.e. Auditor's comments in the FY22 and FY23 audit report,
available from registrar of the companies.
Analytical approach:
Standalone Outlook: Not applicable
MPS Steels Private Limited (MSPL) was originally established as MPS
Steels Castings Private Limited, part of the Paragon Steel Group.
It had two divisions – castings and ingots. Subsequently in FY13,
the ingot division was taken over by Bee Path group, whose
promoters are Mr. Palakkandy UsmanKoya Moideenkoya, Mr. Mujeeb
Rehman Charupadikkal and Mr. Palakkandy Hafeezula and thus MSPL was
incorporated. The directors, Mr. Palakkandy UsmanKoya Moideenkoya
and family, have been in the steel industry for close to two
decades are involved in the day to day activities of the business
of MSPL. MSPL commenced its operations in May 2013 and is engaged
in manufacturing MS ingots. The manufacturing unit is situated in
Palakkad in 2.5 acres which has in-house warehouse to the extent of
approx. 1 acre. MSPL is certified by ISO 9001:2008 and ISI
certification for entire product range.
NASIR ILAHI: CARE Keeps C Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Nasir Ilahi
& Co. (NIC) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated May 4, 2023,
placed the rating(s) of NIC under the 'issuer non-cooperating'
category as NIC had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. NIC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 19, 2024, March 29, 2024, April 8, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Nasir Ilahi & Co. (NIC) was established on June 2017 as a
partnership firm by Mr. Nasir Ilahi and Mr. Wasim Ilahi, Mr. Dinesh
Singh and Mr. Sukhchain Singh. Firm is engaged in chicken egg
hatchery business and its hatchery farm is located in Meerut, Uttar
Pradesh. Firm has proposed to sell chicks to bird growers.
NAVNIT AUTOSPARES: CARE Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Navnit
Autospares (Nagpur) Private Limited (NAPL) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.60 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated May 9, 2023,
placed the rating(s) of NAPL under the 'issuer non-cooperating'
category as NAPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. NAPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 24, 2024, April 3, 2024, April 13, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Navnit Autospares (Nagpur) Private Limited was incorporated in 2002
and is engaged in the distribution of commercial vehicle spare
parts of Tata Motors Limited.
SARITA DEVI: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sarita Devi
Warehouse (SDW) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.26 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated May 5, 2023,
placed the rating(s) of SDW under the 'issuer non-cooperating'
category as SDW had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SDW continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 20, 2024, March 30, 2024, April 9, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Sarita Devi Warehouse (SDW) was established in April, 2013 as a
proprietorship concern. However, the commercial operation started
in April, 2014 and is currently being managed by Mrs. Sarita Devi,
as its proprietor. The firm is engaged in the providing leasing
services of warehouse at its facility located in Sirsa, Haryana.
SKW provides the warehouses on lease to its group concern namely,
Siddheshwar Warehouse). Besides this, the proprietor is also
engaged in other group concern namely, Siddheshwar Warehouse, based
in Sirsa, Haryana and is engaged in similar business operations.
SELVE CASHEWS: CARE Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Selve
Cashews (SC) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated April 21, 2023,
placed the rating(s) of SC under the 'issuer non-cooperating'
category as SC had failed to provide information for monitoring of
the rating and had not paid the surveillance
fees for the rating exercise as agreed to in its Rating Agreement.
SC continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated March 6, 2024, March 16, 2024, March 26, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Cuddalore (Tamil Nadu) based Selve Cashews (SC) is a proprietorship
firm established by Ms. R. Kalai Selvi in March 2010. The promoter
has an experience of over a decade similar line of business. SC is
into Processing and trading of raw cashew nuts. The firm procures
its raw material, the raw nuts, from West Africa and export around
50% of its production to countries like Singapore, Malaysia and
Dubai and remaining are being sold in domestic market. The firm has
an installed capacity of 1.5 tons
per day for the processing of nuts. Presently, the day to day
operations are managed by Ms. R. Kalai Selvi.
SHIRPUR GOLD: Admitted for Corporate Insolvency Resolution
----------------------------------------------------------
The Economic Times reports that Subhash Chandra-promoted Essel
Group's Shirpur Gold Refinery Limited (SGRL) has been admitted for
corporate insolvency resolution.
According to ET, the development follows an application filed by
Prudent ARC at the Mumbai bench of the National Company Law
Tribunal (NCLT) after SGRL defaulted on dues of about INR92 crore.
ET relates that to secure a INR65-crore loan, SGRL had given an
undertaking to Industrial Finance Corporation of India (IFCI) that
it would maintain its own excess shares besides those of Zee Media,
Zee Entertainment (both promoted by Essel Group) and Dish TV India
(which is under Chandra's younger brother) to the extent of
INR32.50 crore.
The outstanding dues include a principal amount of INR65 crore
along with accumulated interest of INR27 crore up to October 14,
2021.
For the corporate insolvency resolution process (CIRP), the
tribunal has appointed Ashish Vyas as the interim resolution
professional (IRP), ET discloses. "The financial creditor has thus
successfully demonstrated and proved the debt and default in this
case," said the division bench in its order dated June 24.
The bench has a judicial member, KR Saji Kumar, and a technical
member, Sanjiv Dutt.
"It is noted that the corporate debtor (SGRL) has admitted the
outstanding debt. Therefore, we are of the considered view that
this application is complete and satisfies all the requirements for
admission under Section 7 of the IBC," said the bench.
In April 2023, securities market regulator Sebi had issued an
interim order-cum-show-cause notice against SGRL, its erstwhile
chairman Amit Goenka, promoter Jayneer Infrapower, and
Multiventures for allegedly diverting funds from the company to
promoter firms.
Shirpur Gold Refinery Limited (SGRL) is a part of Essel Group since
December 2008, post takeover of assets from ARCIL auction. The
company is engaged in gold refining with an installed capacity to
refine 217 MT per annum of gold. Its refinery is located at
Shirpur, Dhule district, Maharashtra. The company is also engaged
in bullion trading, manufacturing and sale of gold coins, gold bars
and gold jewelry both in the domestic and international markets.
The company's products namely Gold Bars and Gold Jewelry are sold
under the brand name 'Zee Gold'. As on March 31, 2019, SGRL has one
wholly owned subsidiary namely Zee Gold DMCC (ZGD), Dubai and two
step down foreign subsidiaries namely Precious Metals Mining and
Refining Limited (PMMRL), Papua New Guinea and Metalli Exploration
and Mining, Mali.
SPS AGRONICO: CARE Keeps B- Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of SPS
Agronico India LLP (SPS) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 27.55 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated April 10, 2023,
placed the rating(s) of SPS under the 'issuer non-cooperating'
category as SPS had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SPS continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 24, 2024, March 5, 2024, March 15, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
SPS Agronico India LLP (SPS) was incorporated on July 17, 2015 as a
Limited Liability Partnership by the partners Mr. Savitri Srikar
Nag (Designated Partner) along with his family members with
registered office at Yeshwanthpur, in order to establish a fully
automized rice processing mill. The firm is engaged in the process
of rice, rice bran, broken rice and husk from paddy
STEEL STOCKHOLDERS: CARE Keeps B- Debt Rating in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of The Steel
Stockholders Syndicate (TSSS) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated May 11, 2023,
placed the rating(s) of TSSS under the 'issuer non-cooperating'
category as TSSS had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. TSSS continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 26, 2024, April 5, 2024, April 15, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings have been revised on account of non-availability of
requisite information.
Pune based, The Steel stockholders Syndicate (TSSS), is a
partnership firm established in 2003 by Mr Pankaj Shah and Mr Kiran
Shah. The entity is engaged in trading of PVC pipes and fittings,
CI pipes, valves, waterproofing items, RCC pipes amongst
others. TSSS is authorized distributor of Finolex Industries
Limited, Zoloto industries, Matrix valves private Limited,
Kapilansh Dhatu Udyog Private Limited. The firm is part of the
Ambalal and Sons group, which has its presence in trading,
consultancy and civil work. The group caters to the variety of
end-user industries and has customer base across Maharashtra.
SUYOG ANJANI: CARE Keeps B- Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Suyog
Anjani Avishkar Associates (SAAA) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.98 CARE B-; ISSUER NOT COOPERATING;
Facilities Rating continues to remain under
ISSUER NOT COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated May 16, 2023,
placed the rating(s) of SAAA under the 'issuer non-cooperating'
category as SAAA had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SAAA continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 31, 2024, April 10, 2024, April 20, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Established in the year 2011 SAAA is a joint venture of Pune based
Suyog Group, Anjani Group, Anjani Promoters and Avishar Associate.
The groups have undertaken real estate projects predominantly in
Pune region. The partners of the SAAA have presence in real estate
business since 1998, through various companies and
partnership/proprietorship entities in association with well-known
developers in Pune.
TECH IDEAS: Voluntary Liquidation Process Case Summary
------------------------------------------------------
Debtor: TECH IDEAS COMPUTER SYSTEMS PRIVATE LIMITED
204, Durga Chambers,
A-8, Veera Desai Road Fun Republic Lane,
Andheri West, Mumbai City,
Mumbai, Maharashtra, India, 400058
Liquidation Commencement Date: April 29, 2024
Court: National Company Law Tribunal, Mumbai Bench
Liquidator: MR. HEMANSHU LALITBHAI KAPADIA
Office no. 201, 2nd Floor, A-Wing,
Jeevan Prabha Society,
Chandavarkar Road, Borivali (West),
Mumbai - 400 092
E-mail: hemanshu@hkacs.com
Tel. No.: 022 31759100
Last date for
submission of claims: May 29, 2024
VARAD FERTILISERS: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Varad
Fertilisers (VF) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.30 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated May 15, 2023,
placed the rating(s) of VF under the 'issuer non-cooperating'
category as VF had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. VF continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 30, 2024, April 9, 2024, April 19, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
VF, based in Sangli, Maharashtra, was established in April 2009, as
a partnership firm with four partners viz. Mr Venkatesh Puramwar,
Mr Sudhakar Parsewar, Mr Sainath Parsewar and Mr Somnath Puramwar.
VF is engaged in trading of fertilizers, seeds and pesticides.
Along with trading activities, VF also provides warehousing and
transport facilities.
VEDANT LANDMARKS: CARE Keeps B- Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Vedant
Landmarks (VL) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 25.00 CARE B-; ISSUER NOT COOPERATING;
Facilities Rating continues to remain under
ISSUER NOT COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated May 16, 2023,
placed the rating(s) of VL under the 'issuer non-cooperating'
category as VL had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. VL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 31, 2024, April 10, 2024, April 20, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
VL is a partnership firm formed on September 30, 2011 and belongs
to Vedant Group. Vedant Group is a renowned name in the real estate
development in Pune and has been in real estate business since a
decade.
WEAR WELL: CARE Lowers Rating on INR38.29cr LT Loan to D
--------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Wear Well India Private Limited (WWIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 38.29 CARE D Revised from CARE BB;
Facilities Stable
Short Term Bank
Facilities 46.00 CARE A4 Reaffirmed
Rationale and key rating drivers
CARE Ratings has revised the ratings assigned to the long term bank
facilities of WWIPL on account of the delay in debt servicing.
Further, the rating assigned to the other bank facilities (short
term) takes into account the tight liquidity position as evidenced
by nearly full utilisation of working capital limits.
The ratings assigned to the bank facilities also constraint by
elongated operating cycle, moderate risk profile, exposure to
foreign currency fluctuation risk along with susceptibility of
margins due to fluctuation in raw material price and highly
fragmented nature of industry with intense competition coupled with
geographical and customer concentration risk. The ratings, however,
derives strengths from experience of promoters with long track
record of operations, long established relationship with suppliers
and reputed clientele.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Satisfactory track record of timely repayment and servicing of
debt obligation for a continuous period of 90 days
* Scaling up of operations, with operating income growing to more
than INR160 crores coupled with PBILDT margin around 8.5%.
* Improvement in capital structure as reflected by overall gearing
ratio to below 1.50x.
Negative factors
* Any further deterioration in the liquidity profile of the
company.
* Decline in PBILDT margin below 5% on a sustained basis.
* Deterioration in the capital structure as marked by overall
gearing ratio of above 3.00x.
Analytical approach: Standalone
Outlook: Not Applicable
Detailed description of the key rating drivers:
Key weaknesses
* Delay in debt servicing in one of the credit facilities availed
by the company: As per the Deutsche bank statement of the company,
it was observed that there was delay in the repayment of April
months EMI. This has been one off scenario and has never occurred
in the last 12 months and even payment for the month of May and
June were made on time. Also, debt servicing of other credit
facilities are regular as per the interaction with the lenders and
bank statement received.
* Elongated operating cycle: The operating cycle of the firm
continues to be elongated at 196 days in FY24 (PY: 132 days). The
elongation is majorly on account of elongated inventory period of
167 days as at March 31, 2024. The company processes various types
of fabrics which requires to maintain stock of different forms of
fabrics and allied materials for smooth production process. In
addition, the manufacturing process involves printing, embroidery
and dyeing leading to work in progress period. Furthermore, the
firm has to maintain minimum inventory of its products to meet the
demand of its customers resulting in average inventory period of
167 days. The firm offers credit period of around 1-2 month to its
customers while receives average credit of around 1 month from the
fabric manufacturing mills. The liquidity position of company also
remains stretched marked by average working capital utilisation of
95% during last 12 months ending May 31,2024.
* Moderate financial risk profile of the company: The company's
operations declined by 23%, reaching INR124.23 crores in FY24
(Provisional; April 1 to March 31), compared to INR161.88 crores in
FY23 (Audited; April 1 to March 31). This revenue drop is
attributed to reduced sales volumes to existing customers due to a
general slowdown in the textile industry, largely driven by the
negative demand dynamics stemming from the geopolitical tensions
caused by the Ukraine-Russia conflict. The company's profitability
margins remained moderate, with the PBILDT margin improving to
7.82% in FY24 from 7.45% in the previous year. However, the profit
after tax (PAT) margin decreased to 0.54% from 1.18%. The capital
structure of the company also remained moderate year-on-year, with
long-term debt-to-equity and overall gearing ratios at 1.24x and
2.63x as of March 31, 2024, compared to 1.37x and 2.7x as of March
31, 2023. The slight improvement in capital structure was primarily
due to accretion of profits in the net worth.
* Exposure to foreign currency fluctuation risk: The profitability
margins of WWIPL are exposed to foreign exchange fluctuation, as
the company derives a significant portion of its operating income
from exports which comprises almost ~100% of revenue during FY24.
Though some procurements are also made from China which comprises
roughly 10% of total procurements, it provides a natural hedge to
the company to some extent. Further, company also book forward
contracts to counter the forex risk. However, since the complete
exposure of the company is not hedged, it is exposed to any adverse
fluctuation in the foreign exchange prices. Thus, company has
booked foreign currency fluctuation gain of INR0.63 crores during
FY24.
* Susceptibility of margins to raw material price fluctuations: The
operations of company are raw material intensive in nature with the
material cost constituting ~40% on an average of the total income
during the FY24. Major raw material of company includes fabrics
which are produced from yarn. The prices of the yarn are
fluctuating in nature and the price variation is at times not
completely passed on to the customers due to competitive nature of
the market. This exposes the margins to any adverse movement in the
raw material prices. Although, company books yarn prices with the
supplier at the time of order which mitigates risk of yarn prices
fluctuations to some extent. In FY25 company also started
manufacturing of basic garments which will add value in generating
better revenue and margin. This will mitigate the risk of dealing
in high end garments. As high end garments took 4 to 6 months in
processing and basic garment needs 60-100 days this will reduce the
raw material volatility risk also.
* Highly fragmented nature of industry with intense competition
coupled with geographical and customer concentration risk: Company
is engaged in manufacturing and export of garments. Garments
manufacturing industry is highly competitive marked
by multiple manufacturers within India as well as abroad.
Furthermore, company is an exporter wherein ~100% of revenue
comprises from exports and company is majorly focussed on UK
markets. Due to high geographic concentration, the firm is also
exposed to unfavourable changes in the government policy of these
countries. Further, top 5 customer comprises ~90% of the total
revenue from operations during FY24. The client concentration risk
exposes the entities revenue growth and profitability to its
customer's future growth plans. However, the company has been
getting the repetitive orders for more than a decade from its
clients. This long-term and close relationship with its clients is
reflective of the firm's demonstrated ability to provide quality
products which partially mitigates the concentration risk.
Moreover, Company has added the new Buyers in preceding financial
year and trying to diverse their operations in US and Brazilian
markets as well.
Key strengths
* Experienced and resourceful promoters with long track record of
operations: WWIPL is led by Mr Bharat Saini and Ms Ishita Saini who
has almost two decades of experience in garment industry. Company
is ably supported by a team of professionals who are highly
experienced in their respective domains. Furthermore, the promoters
of the company are resourceful and have extended continuous
financial support to the company in the past by infusing additional
funds in the form of unsecured loans to fund various business
requirements. The unsecured loans from directors stood at INR4.32
crores as on March 31, 2024 (Prov.), of which INR2.84 crores remain
subordinated to the bank loan.
* Long established relationship with suppliers and reputed
clientele: WWIPL has been operational for almost two decade and has
been able to establish relationship with its suppliers and
customers. The company is in association with reputed supplier base
and procures majority of its raw materials i.e., fabrics directly
from mills located in Northern India. Firm has long and established
relation with reputed customers like Marks and Spencer's, Zara,
Sainsbury Supermarkets Ltd, MV Morrison Supermarkets Plc etc. and
they majorly focus on kids' garments which comprises almost 85% of
total revenue from operations. They have order in hand of INR~75
crores to be executed by May 31, 2024. Besides that, they have also
added few new buyers like Walmart US in FY24 (company has already
shipped around 15 crore of orders as on May 31, 2024) and Tchibo,
US, Very Group, UK & Rachlo, Brazil in FY25 from whom they are
getting regular orders. In FY25 company also started manufacturing
of basic garments which will add value in generating better revenue
and margin.
Liquidity: Poor
The company has delays in debt servicing in one of the credit
limits availed by the company. Further, its tight liquidity
position is evidenced by nearly full utilisation of working capital
limits. The company has a total debt repayment obligation of
INR5.80 crores and 5.29 for FY25 and FY26 respectively, which will
be met through the operational cash flow as company is projecting
to achieve GCA of ~Rs.6 crore due to better orders expected. The
cushion between repayment obligations and gross cash accruals
remains very thin which reflects stretched liquidity position.
Wear Well India Pvt. Ltd. was incorporated in May 2002 based in New
Delhi, India. Company is engaged in manufacturing and exports of
mainly woven and knitwear fabrics of women and children wear. The
company majorly deals in US and European markets. Major clients
include Zara, Marks and Spencer, Sainsbury, Urban Outfitters etc.
With over 1500 machines, company has comprehensive in-house
facilities and provides a one-stop solution right from designing to
sourcing to shipping the finished product. Company operates from
two manufacturing units and has installed capacity of 4,00,000
pieces per month. The company is managed by Mr. Bharat Sahni and
Ms. Ishita Sahni in the capacity of directors.
=================
I N D O N E S I A
=================
MEDCO ENERGI: S&P Upgrades ICR to 'BB-', Outlook Stable
-------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on Medco Energi
Internasional Tbk. PT (Medco) to 'BB-' from 'B+' and raised its
rating on its senior unsecured notes to 'BB-' from 'B+'.
The outlook on Medco is stable, reflecting its expectation that
Medco will maintain stable production, utilize discretionary cash
flow to reduce debt, and maintain healthy headroom for the
ratings.
S&P said, "The upgrade reflects our view that Medco's equity stake
in Amman Mineral Internasional Tbk. PT. provides the company with
material financial flexibility. Medco's unconsolidated 20.92%
equity stake in the Indonesia copper and gold miner carries a
market valuation of about US$10 billion, based on its latest share
price quoted on the Indonesia Stock Exchange. Although Medco does
not have any immediate plans to divest its stakes in Amman, we
believe that the option for the company to monetize part of its
stake provides Medco with a high degree of financial flexibility.
"In our view, divesting a small portion of Medco's equity stake in
Amman has the capacity to materially improve its financial profile,
even after assuming a hefty discount on market valuation, should
the proceeds be used to repay debt. In a stress scenario, we
believe the asset would become an increasingly important source of
financial flexibility that would enable the company to protect its
financial profile."
The underlying value and marketability of Medco's stake in Amman
has become increasingly visible over the past six to 12 months.
Medco first acquired a 50% equity stake in Amman in 2016, which was
listed on the Indonesia Stock Exchange in July 2023. S&P said,
"With about 10% of Amman shares on free float, we believe Medco
could divest a small portion of its stake in Amman in the open
market or enter into a block share transaction referencing the
Amman share price, if needed. The market liquidity observed in
Amman Mineral's shares also supports our assessment."
Medco also has a record of monetizing its equity stakes in Amman to
repay debt and boost its liquidity, having raised US$453 million on
selling a 13.7% stake over 2018-2021. Medco used the proceeds to
repay debt following its acquisition of Ophir Energy in 2019, and
subsequently to boost liquidity during the pandemic.
Oil and gas prices will continue to support credit metrics in
2024-2025. Favorable industry conditions over the past 18-24 months
have allowed Medco to generate significant cash flow and fully
repay its US$850 million of debt undertaken to acquire the Corridor
production sharing contract in 2022. S&P said, "Although the
company subsequently re-levered for its Oman acquisition in
November 2023, we expect Medco to continue allocating discretionary
cash flow to repay the Oman acquisition debt over the next 18-24
months. This underpins our expectation for consolidated gross debt
(including Medco's power segment) to ease to about US$3 billion in
2025, from US$3.3 billion as of end 2023."
S&P said, "Under our Brent oil price assumption of US$85 per barrel
(/bbl) for the rest of 2024 and US$80/bbl for 2025, we project
Medco's EBITDA to be US$1.3 billion-US$1.4 billion and funds from
operations (FFO) to debt at about 25%. This represents a sound
rating headroom against the company's downside threshold of 15% FFO
to debt for a 'BB-' rating. We estimate Medco's pro-forma Oman
acquisition FFO-to-debt to be about 21.7% for 2023.
"Under the company's sensitivity analysis, a US$10/bbl drop in oil
prices would result in a drop in EBITDA of about US$120 million,
which translates to a drop in the company's FFO to debt of about 5
percentage points under our base case."
Medco has strengthened its business over the past 24 months through
a combination of organic development and acquisitions. The company
expects average production for 2024 to be 145,000-150,000 barrels
of oil equivalent per day (boe/d), which represents about a 55%
increase in production compared with 2021. Over the same period,
Medco has also extended the economic life of its three largest
producing assets (Corridor, Tomori, and South Natuna Sea Block B)
via organic replenishment of reserves. Medco's production profile
over 2024-2026 is increasingly visible following its renewal of gas
contracts in the Corridor block earlier this year, as well as an
updated capital pipeline across its three largest producing assets
to sustain production at these levels.
S&P expect a drop in production in 2024 from 160 kboe/d in 2023
despite about 13 kboe/d production accretion from the Oman
acquisition. This is due to a contractual reduction of working
interest in Corridor block by 8% (about 10 kboe/d), divestment in
non-operated assets in Vietnam as well as lower piped gas demand
from Singapore.
Nevertheless, Medco has been able to replenish its reserves at an
economical cost, which has been accretive for its business. At its
expanded production scale, the company reported a proven and
probable (2P) reserves life of about 10.8 years as of March 31,
2024, up from about 9.3 years as of end 2022. The company's
five-year average of all sources finding and development costs was
US$6.7/boe as of end 2023. At the same time, the acquisition of
Corridor in 2022 also reduced Medco's operating expense per boe in
its oil and gas business; operating costs declined to
US$12.5/boe-US$13.5/boe over 2022-2023, down from
US$15/boe-US$17/boe over 2019-2021.
Medco's hydrocarbon production remains weaker compared with 'BB'
rated peers. The company's production of 145 kboe/d-150 kboe/d 2024
is lower than peers such as Harbour Energy PLC (BB/Watch Pos/--,
about 190 kboe/d in 2023), Murphy Oil Corp. (BB+/Stable/--, 180
kboe/d), Range Resources Corp. (BB/Stable/--, about 350 kboe/d),
and CNX Resources (BB/Stable/--, about 300 kboe/d). However, we
note the company's gas-heavy portfolio with significant exposure to
fixed-price gas has proven to be more resilient through recent
bouts of market volatility. That said, mitigating this relatively
smaller scale is Medco's better unleveraged cost position (unit
cash operating cost and all sources finding and development costs)
than peers. Underpinning this are the company's efficient lifting
costs as well as its ability to replenish its reserves at
relatively lower cost.
S&P said, "Our view of Medco's financial policy is supportive of a
'BB-' rating. We anticipate Medco will continue growing its
business and oil and gas production predominantly via acquisitions,
given its stated strategy of being an aggregator of mature assets
in jurisdictions where it has operational know-how." This
consequently adds an element of uncertainty around our projected
leverage metrics, depending on how the company finances and times
the acquisitions. The capital intensity of such a strategy where
Medco will take on debt to fund acquisitions increases the
sensitivity of Medco's credit ratios to a pricing downcycle.
Mitigating this risk, however, is the company's record of adhering
to its net debt-to-EBITDA ratio target of 2.5x for the restricted
group assuming its mid-cycle oil price assumption of US$65/bbl over
the past two acquisitions; namely Corridor and Oman Block 60.
Moreover, favorable industry conditions have also permitted timely
debt reduction following acquisitions, which strengthens its
balance sheet. In S&P's analysis, it continues to consider the
financial profile of the consolidated group, including Medco's
power business.
Although the company's leverage tolerance in pursuing acquisitions,
potentially even at lower oil prices, remains to be tested, S&P
believes Medco's stake in Amman Mineral provides the company with
significant financial flexibility, if needed, to preserve its
financial profile.
S&P said, "The stable outlook on Medco reflects our view that the
company will maintain a production rate of 140 kboe/d to 150 kboe/d
over the next 18 months and use its discretionary cash flow to
reduce debt. We expect the company's FFO to debt to be 20%-25% over
the same period."
S&P could lower the rating on Medco if its ratio of FFO to debt
remains below 15% on a sustained basis. This could happen if:
-- Oil prices fall materially below S&P's expectation, without
Medco scaling back capital spending and dividends, or
-- The company undertakes debt-funded acquisitions with no
commensurate earnings accretion.
S&P said, "We could also lower the rating if we no longer viewed
Medco's equity interest in Amman Mineral to be a credible source of
financial flexibility that could support Medco's financial profile
or debt reduction. Medco divesting a material portion of its equity
interest in Amman Mineral to fund shareholder returns could inform
us of such a change.
"We see limited rating upside in the next 12 to 18 months. We may
ultimately consider a higher rating if management demonstrates a
commitment to, and record of, a more conservative financial policy
to sustain a stronger financial profile. An FFO-to-debt ratio
approaching 30% sustainably as the company pursues growth
opportunities would indicate such improvement.
"An upgrade would also be predicated on our view that the company
can maintain a production profile and reserves in line with
comparably rated peers while keeping costs low."
===============
M O N G O L I A
===============
DEVELOPMENT BANK OF MONGOLIA: Fitch Affirms 'B' IDR, Outlook Stable
-------------------------------------------------------------------
Fitch Ratings has affirmed Development Bank of Mongolia LLC's (DBM)
Long-Term Issuer Default Ratings (IDRs) at 'B' and Government
Support Rating (GSR) at 'b'. All the ratings have been removed from
Rating Watch Negative, as Fitch believes recent developments have
confirmed DBM's policy role and that the bank's near-term
refinancing risk has receded. The Outlook on the IDRs is Stable.
KEY RATING DRIVERS
Full State Ownership: DBM's ratings are in line with those of the
Mongolian sovereign rating (B/Stable), reflecting its belief that
the sovereign has the ability and propensity to support DBM, given
its full state ownership and status as a policy bank. Fitch
believes the state will remain the majority owner of DBM.
Law Amendment to Bolster Role: Fitch believes the proposed
amendments to the DBM law, as seen in the March 2024 draft, will
enhance DBM's governance framework and statutory authority, thereby
improving its capacity to execute policy lending more effectively.
The proposal also expands DBM's financing function to support
Mongolia's exports and import. This reinforces the bank's policy
role and enhances the likelihood of state support. Fitch expects
the law to be ratified by a new parliament following the election
scheduled on 28 June 2024.
Lower Refinancing Risk: Fitch believes refinancing risk for DBM has
receded, supporting the Stable Outlook on its ratings, as the bank
has successfully repaid the two bonds that matured in 2023.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
A dilution of the state's ownership would lead Fitch to reassess
the propensity of the government to provide necessary support to
DBM. This would result in a downgrade of the GSR and, in turn, the
IDRs. The ratings would also be downgraded if Fitch believes DBM's
policy role and importance to the state have diminished.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Positive rating action on the sovereign rating is likely to lead to
similar action on DBM's ratings, assuming no changes in the
sovereign's propensity to provide support.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
The bank's IDRs are driven by its view of the likelihood of support
from the Mongolian sovereign.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
Development Bank
of Mongolia LLC LT IDR B Affirmed B
ST IDR B Affirmed B
LC LT IDR B Affirmed B
Government Support b Affirmed b
=====================
N E W Z E A L A N D
=====================
HANHUI INTERNATIONAL: Creditors' Proofs of Debt Due on July 21
--------------------------------------------------------------
Creditors of Hanhui International Limited and Kumeu East Realty
Limited are required to file their proofs of debt by July 21, 2024,
to be included in the company's dividend distribution.
The High Court at Auckland appointed Kristal Pihama and Leon
Francis Bowker of KPMG as liquidators on June 21, 2024.
HARMONEY NZ 2023-1: Moody's Raises Rating on Class F Notes to Ba3
-----------------------------------------------------------------
Moody's Ratings has upgraded the ratings on five classes of notes
issued from Harmoney NZ ABS 2023-1 Trust.
The affected ratings are as follow:
Issuer: Harmoney NZ ABS 2023-1 Trust
Class B Notes, Upgraded to Aa1 (sf); previously on Aug 24, 2023
Definitive Rating Assigned Aa2 (sf)
Class C Notes, Upgraded to A1 (sf); previously on Aug 24, 2023
Definitive Rating Assigned A2 (sf)
Class D Notes, Upgraded to Baa1 (sf); previously on Aug 24, 2023
Definitive Rating Assigned Baa2 (sf)
Class E Notes, Upgraded to Baa3 (sf); previously on Aug 24, 2023
Definitive Rating Assigned Ba2 (sf)
Class F Notes, Upgraded to Ba3 (sf); previously on Aug 24, 2023
Definitive Rating Assigned B2 (sf)
A comprehensive review of all credit ratings for the transaction
has been conducted during a rating committee.
RATINGS RATIONALE
The upgrades were prompted by an increase in credit enhancement
available for the affected notes and the collateral performance to
date.
No action was taken on the remaining rated classes in the deal as
credit enhancement for these classes remain commensurate with the
current ratings.
Following the June 2024 payment date, the note subordination
available for the Class B, C, D, E and F Notes has increased to
34.4%, 27.4%, 20.0%, 14.3% and 8.5% respectively from 26.9%, 21.3%,
15.4%, 10.8% and 6.2% at closing.
Principal collections have been distributed on a pro-rata basis
among the rated notes since the May 2024 payment date. Current
total outstanding notes as a percentage of the total closing
balance is 72.7%. Class G notes (unrated) were split into Class G1
and Class G2 notes in December 2023.
As of end-May, 1.8% of the outstanding pool was 30-plus day
delinquent and 0.2% was 90-plus day delinquent. The portfolio has
incurred 0.9% of cumulative defaults to date, all of which have
been covered by excess spread.
Based on the observed performance to date and loan attributes,
Moody's have maintained Moody's expected default assumption at 9.0%
as a percentage of the current pool balance (equivalent to 7.5% of
the original balance). Moody's have also maintained Moody's
portfolio credit enhancement assumption at 38%.
The transaction is a securitisation of New Zealand unsecured
personal loans originated by Harmoney Services Limited.
The principal methodology used in these ratings was "Moody's
Approach to Rating Consumer Loan-Backed ABS" published in December
2022.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that could lead to an upgrade of the ratings include (1)
performance of the underlying collateral that is better than
Moody's expectations, and (2) an increase in credit enhancement
available for the notes.
Factors that could lead to a downgrade of the ratings include (1)
performance of the underlying collateral that is worse than Moody's
expectations, (2) a decrease in credit enhancement available for
the notes, and (3) a deterioration in the credit quality of the
transaction counterparties.
OCHO LIMITED: Avoids Liquidation; Ex-Director to Prepare Plan
-------------------------------------------------------------
Stuff.co.nz reports that a man behind a crowd-funded chocolate
company has offered it a reprieve from the current board pushing
for voluntary liquidation.
Earlier this month the Dunedin-based crowd-funded business Ocho
chocolate revealed it may enter voluntary liquidation, citing
financial uncertainty.
That decision to cast a special resolution vote for liquidation and
the appointment of a liquidator, was held on June 25, Stuff says.
But that online meeting did not go as expected for that board,
sources told Stuff.
According to Stuff, the meeting began with an early push towards
voluntary liquidation, but was questioned by some shareholders
expecting to hear some discussion.
That led to Jim O'Malley, a current Dunedin councillor and former
director of Ocho, providing a stay of execution for the embattled
company.
He told Stuff that he questioned the board, who had argued that
there was no financial future for the company, and successfully
move that the company put off receivership.
That two-week reprieve would allow him time to look over the
company's financials, and to prepare a possible alternative plan: a
budget for the next two years, he said.
The original Ocho craft chocolate company was launched by Liz Rowe,
who remains the company's largest shareholder, in 2013.
In 2017, when Cadbury owner Mondelez announced it was going to shut
its Dunedin factory with the loss of 360 jobs, Mr. O'Malley led a
crowd-funding campaign on PledgeMe, Stuff recalls.
That campaign raised NZD2 million from 3,549 investors, with the
money used to buy Ocho after an initial attempt to manufacture some
Cadbury products were rejected by the food giant.
Ms. Rowe stayed on as general manager to set-up the new factory and
resigned in 2019, while company records show Mr. O'Malley stayed on
as a director until February this year.
Financial statements provided to Stuff show that the company had a
healthy turnover, including more than NZD750,000 in sales, with its
largest liability monies owed to directors.
Around NZD150,000 was owed to directors of the company, with more
than NZD120,000 owed to Mr. O'Malley.
Before the meeting he expressed his concern to Stuff over the
direction of the company.
"It doesn't look like a liquidation level of debt," he said. Before
Covid, the company had recorded 30% growth, he said.
The possibility of shareholders losing their investment "doesn't
sit well with me".
He confirmed that the director fees he was owed had been deferred,
and as the single biggest creditor he would not take that money if
the company went into liquidation.
As of May 29, 3,738 shareholders and 27,806 shares were on issue,
with the majority of shares bought at NZD100 per share. Those same
shareholders were sent information from director Peter Lead, who
joined the board in November, which gave some background as to why
the board supported voluntary liquidation, according to Stuff.
"There was no one incident or decision that put the company in this
position."
He noted the company had a cash balance of NZD9,500 for the
financial year, Stuff adds.
SHAN TRANSPORT: Court to Hear Wind-Up Petition on July 12
---------------------------------------------------------
A petition to wind up the operations of Shan Transport Limited will
be heard before the High Court at Auckland on July 12, 2024, at
10:45 a.m.
Penske New Zealand of Auckland filed the petition against the
company on May 14, 2024.
The Petitioner's solicitor is:
Turner Hopkins
DLA Piper New Zealand
Level 15, PWC Tower
15 Customs Street West
Auckland 1010
STRICKLY PROPERTIES: Court to Hear Wind-Up Petition on Aug. 2
-------------------------------------------------------------
A petition to wind up the operations of Strickly Properties Limited
will be heard before the High Court at Auckland on Aug. 2, 2024, at
10:00 a.m.
Auckland Council filed the petition against the company on April 9,
2024.
The Petitioner's solicitor is:
Kirstin Margaret Wakelin
135 Albert Street
Auckland
SYNTHASE BIOTECH: Creditors' Proofs of Debt Due on Aug. 30
----------------------------------------------------------
Creditors of Synthase Biotech Limited are required to file their
proofs of debt by Aug. 30, 2024, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on June 20, 2024.
The company's liquidators are:
Christopher Carey McCullagh
Stephen Mark Lawrence
PKF Corporate Recovery & Insolvency
PO Box 3678, Auckland 1140
TECH TALENT: Steven Khov and Kieran Jones Appointed as Receivers
----------------------------------------------------------------
Steven Khov and Kieran Jones of Khov Jones on June 25, 2024, were
appointed as receivers of Tech Talent Limited and Hugh James Bevin
Lloyd.
The receivers may be reached at:
Khov Jones Limited
PO Box 302261
North Harbour
Auckland 0751
=====================
P H I L I P P I N E S
=====================
9F LENDING: SEC Issues Cease-and-Desist Orders
----------------------------------------------
BusinessWorld reports that the Securities and Exchange Commission
(SEC) has issued cease-and-desist orders against six financing and
lending companies for failing to comply with government
requirements.
The orders were issued under Republic Act No. 11765, also known as
the Financial Consumer Protection Act, the SEC said in a statement
on June 25, BusinessWorld relates.
The companies covered by these orders are 9F Lending Philippines
Inc., Elending Lending Inc., Hovono Lending Corp., Makati Loan,
Inc., Second Pay Financing Inc., and Tekwang Lending Corp.
According to BusinessWorld, the SEC said these companies did not
adhere to several memorandum circulars (MCs) and orders.
Specifically, they failed to submit the required impact evaluation
report by Jan. 15 annually starting in 2023 (MC No. 3, Series of
2022), provide an official e-mail and contact number (MC No. 28,
Series of 2022), and disclose advertisements, and report online
lending platforms (MC No. 19, Series of 2019), the commission
said.
The SEC also noted non-compliance with orders requiring the
establishment of a complaints handling mechanism, registration with
the credit information corporation, and submission of a list of
third-party service providers, BusinessWorld relays.
"These financing and lending companies, including their owners,
operators, promoters, representatives, and agents are directed to
immediately cease and desist from engaging in, carrying out,
promoting, which includes offering and advertising their lending
business through the internet and/or any other media, and
facilitating any lending activity or transaction," the SEC said.
=================
S I N G A P O R E
=================
ALGORI CAPITAL: Creditors' Proofs of Debt Due on July 25
--------------------------------------------------------
Creditors of Algori Capital VCC are required to file their proofs
of debt by July 25, 2024, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on May 24, 2024.
The company's liquidator is:
Farooq Ahmad Mann
Mann & Associates PAC
3 Shenton Way
#03-06C Shenton House
Singapore 068805
FLOATATION PTE: Court to Hear Wind-Up Petition on July 5
--------------------------------------------------------
A petition to wind up the operations of Floatation Pte Ltd will be
heard before the High Court of Singapore on July 5, 2024, at 10:00
a.m.
DBS Bank Ltd filed the petition against the company on June 14,
2024.
The Petitioner's solicitors are:
Shook Lin & Bok LLP
1 Robinson Road
#18-00 AIA Tower
Singapore 048542
NATURE ONE: Court to Hear JM Order Petition on July 4
-----------------------------------------------------
A petition to place the operations of Nature One Dairy (Australia)
Pte Ltd under judicial management will be heard before the High
Court of Singapore on July 4, 2024, at 10:00 a.m.
Bicheno Investments Pty Ltd filed the petition against the company
on June 7, 2024.
The Petitioner's solicitors are:
Setia Law LLC
1 George Street
#07-03 One George Street
Singapore 049145
NEW LIFE: Court to Hear Wind-Up Petition on July 5
--------------------------------------------------
A petition to wind up the operations of New Life Engineering Pte
Ltd will be heard before the High Court of Singapore on July 5,
2024, at 10:00 a.m.
DBS Bank Ltd filed the petition against the company on June 14,
2024.
The Petitioner's solicitors are:
Shook Lin & Bok LLP
1 Robinson Road
#18-00 AIA Tower
Singapore 048542
TARGA SOLUTION: Commences Wind-Up Proceedings
---------------------------------------------
Members of Targa Solution Pte Ltd on June 20, 2024, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidator is:
Farooq Ahmad Mann
Mann & Associates PAC
3 Shenton Way
#03-06C Shenton House
Singapore 068805
=====================
S O U T H K O R E A
=====================
[*] BOK Warns of Developers' Debt Risks as Profits Shrink
---------------------------------------------------------
Bloomberg News reports that financial troubles at South Korean
developers may worsen as they start to bear the brunt of a market
slump that weighs on their earnings, the central bank said, issuing
the latest warning over credit risks that continue to overshadow
the economy.
According to Bloomberg, the property sector has taken a hit since
the Bank of Korea (BOK) started its policy tightening in 2021 to
rein in an inflationary bubble stemming from pandemic-era stimulus.
The BOK has kept policy rates at 3.5 per cent, a level it deems
restrictive, since January 2023. Elevated rates have made it harder
for developers to borrow and repay debt, including limiting access
to short-term loans known as project finance (PF).
"The sluggish profitability of construction companies is expected
to continue for a while as the impact of the contraction in new
orders and permits goes into full swing," the BOK said on June 26
in its regular financial stability report, Bloomberg relays.
"In this situation, if real estate PF projects do not proceed
smoothly, the liquidity of construction companies may decrease," it
said, noting that developers that are smaller in size or based in
provincial areas are especially vulnerable.
South Korea's PF loans amounted to KRW134.2 trillion in the first
quarter while the delinquency rate rose to 3.55 per cent,
continuing a rise from late 2021, the BOK, as cited by Bloomberg,
said. While PF is among the primary risks for the economy, there is
still a low possibility that it will ripple across the financial
system, it added.
Bloomberg says South Korean developers often borrow against
expected future profits, a practice that has long been a source of
concern in the property market. After the BOK began tightening, a
series of high-profile credit events have kept policymakers on
edge, including a 2022 default by the developer of a Legoland Korea
theme park.
=============
V I E T N A M
=============
VIETNAM AIR: Risks Insolvency if State-Backed Loan Isn't Extended
-----------------------------------------------------------------
Bloomberg News reports that national carrier Vietnam Airlines risks
insolvency as early as July if the repayment deadline for a
government-backed loan is not extended, according to a statement on
the National Assembly's website.
Bloomberg relates that the airline is in a "financial crisis"
because it has not yet completed refinancing efforts such as
restructuring non-core investments and sales of new shares due to
delays in regulatory approvals, according to the statement. The
parliament's economic committee called Vietnam Airline's situation
"urgent" and implored the legislative body to act quickly.
Vietnam Airlines received VND4 trillion in low-cost loans from
commercial banks that were refinanced at 0 per cent interest by the
central bank in 2021.
The government recommended the parliament to allow three loan
repayment extensions to Dec. 31, 2027, to give the airline time to
complete its restructuring, the statement, as cited by Bloomberg,
said.
Vietnam Airlines is targeting an after-tax profit of VND4.2
trillion this year after posting a loss of VND5.6 trillion in 2023,
news website ZNews reported June 21, Bloomberg relays.
Bloomberg adds that the company will focus on restructuring its
assets, capital, investment portfolio and organisational structure
as well as corporate governance reforms, chairman Dang Ngoc Hoa
said on June 24. The "primary goal" is to reduce losses and balance
revenue and expenditures in 2024, Hoa said.
Vietnam Airlines is the national airline of Vietnam and
majority-owned by the Vietnamese government. Vietnam Airlines
operates an extensive network of domestic and regional services
within Southeast and North Asia and international services to
Europe and Australia.
*********
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
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*** End of Transmission ***