/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/240918.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 Wednesday, September 18, 2024, Vol. 27, No. 188 Headlines A U S T R A L I A ABA TRUST 2023-1: S&P Affirms BB (sf) Rating on Class E Notes BUSTECH SA: GoZero Group's Acquisition Bid Approved CAPITAL T: First Creditors' Meeting Set for Sept. 26 CBD CONTRACTING: Second Creditors' Meeting Set for Sept. 23 HIGHWAY ADVOCATES: Second Creditors' Meeting Set for Sept. 23 RURAL LIQUID: Second Creditors' Meeting Set for Sept. 25 SHANE'S TREES: First Creditors' Meeting Set for Sept. 25 C H I N A CHINA VANKE: Fitch Lowers LongTerm IDR to 'B+', Outlook Negative FOSUN INT'L: CapitaLand in Talks to Buy Minority Stake in Club Med KAISA GROUP: Majority of Creditors Support Debt Restructuring Plan SHINECO INC: Falls Short of Nasdaq's Minimum Bid Price Requirement YANKUANG ENERGY: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable ZW DATA: Secures $537,636 From Securities Purchase Agreements I N D I A 9PLANETS PRODUCTS: CRISIL Keeps D Debt Ratings in Not Cooperating ARADHANA DISTRIBUTORS: CRISIL Cuts Rating on INR5cr Loan to C ARYAN CONSTRUCTION: ICRA Keeps B+ Debt Ratings in Not Cooperating BLACK BURN: ICRA Withdraws B+ Rating on INR11cr LT Loan BVL GRANITES: ICRA Keeps B+ Debt Ratings in Not Cooperating C P ISPAT: CRISIL Keeps D Debt Ratings in Not Cooperating CHENAB INDUSTRIES: CRISIL Keeps D Ratings in Not Cooperating DELHI INTERNATIONAL: Fitch Affirms 'BB-' IDR, Outlook Positive DEWAN CHAND: CRISIL Keeps D Debt Ratings in Not Cooperating DRISH SHOES: CRISIL Keeps D Debt Ratings in Not Cooperating EKAM AGRO: CRISIL Keeps D Debt Ratings in Not Cooperating ENIGMA VENTURES: CRISIL Keeps D Debt Ratings in Not Cooperating GAURI INTERNATIONAL: CRISIL Keeps D Ratings in Not Cooperating GINI & JONY: NCLT Starts Corporate Insolvency Resolution Process GIRINDRA HOSPITALITY: CRISIL Keeps D Rating in Not Cooperating GMR HYDERABAD: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable GOPAL AUTO: ICRA Keeps B+ Debt Ratings in Not Cooperating GOUTHAMI HATCHERIES: CRISIL Keeps D Ratings in Not Cooperating GOVAAN STEELS: CRISIL Keeps D Debt Ratings in Not Cooperating GUJARAT EXPORT: CRISIL Keeps D Debt Ratings in Not Cooperating HBS CITY: CRISIL Keeps D Debt Ratings in Not Cooperating Category JAYPEE HEALTHCARE: Max Healthcare to Acquire Stake in Company JHUNJHUNWALA OIL: CRISIL Keeps D Debt Ratings in Not Cooperating LAVASA CORP: NCLT Revives Insolvency, Rejects Darwin Platform Plan LOHR INDIA: CRISIL Keeps D Debt Ratings in Not Cooperating MAHAKALESHWAR TOLLWAYS: ICRA Keeps D Rating in Not Cooperating MANIK COMMERCIAL: CRISIL Keeps D Debt Ratings in Not Cooperating NYKA STEELS: CRISIL Keeps D Debt Ratings in Not Cooperating P NARASIMHA: CRISIL Keeps D Debt Ratings in Not Cooperating PANKAJ C: ICRA Lowers Rating on INR4.0cr LT Loan to D PRABIR FOODSTUFF: CRISIL Keeps D Debt Ratings in Not Cooperating PRACHIN FOUNDATION: CRISIL Keeps D Ratings in Not Cooperating S. K. TEXTILES: CRISIL Keeps D Debt Ratings in Not Cooperating SHIKHAR INTEGRATED: CRISIL Keeps D Ratings in Not Cooperating SHIVA POLYMERS: CRISIL Keeps D Debt Ratings in Not Cooperating SUJATHA FEEDS: CRISIL Keeps D Debt Ratings in Not Cooperating VEDANTA RESOURCES: Moody's Ups CFR to Caa1 & Unsec. Bonds to Caa2 I N D O N E S I A ADARO INDONESIA: Moody's Affirms 'Ba1' CFR, Outlook Remains Stable N E W Z E A L A N D ANDREAS CAPITAL: Court to Hear Wind-Up Petition on Oct. 4 JLF CONSTRUCTION: Court to Hear Wind-Up Petition on Sept. 23 MECCASPRESSO: Tay St Cafe Closes Doors After Eight Years RECREATIONAL GROUP: Creditors' Proofs of Debt Due on Oct. 8 SR INDIAN: Grant Bruce Reynolds Appointed as Liquidator TECHNIX BITUMEN: Owes More Than NZD10MM, Liquidator's Report Shows THORN PLACE: BDO Auckland Appointed as Receiver and Manager S I N G A P O R E COMBI PROCESS: Creditors' Meeting Set for Sept. 25 DRAGON GROUP: Creditors' Meeting Set for Oct. 4 HOSPITALITY SUITES: Court to Hear Wind-Up Petition on Oct. 4 MTN CONSULTANTS: Creditors' Proofs of Debt Due on Oct. 7 PORTERS RESTAURANT: Commences Wind-Up Proceedings T H A I L A N D MUANGTHAI CAPITAL: Fitch Assigns 'BB' LongTerm IDR, Outlook Stable - - - - - ================= A U S T R A L I A ================= ABA TRUST 2023-1: S&P Affirms BB (sf) Rating on Class E Notes ------------------------------------------------------------- S&P Global Ratings raised its ratings on two classes of Australian prime residential mortgage-backed securities (RMBS) transactions. At the same time, S&P affirmed its ratings on 34 classes of notes. S&P also removed 20 of these ratings from under criteria observation (UCO). The rating actions follow S&P's review of these bank-sponsored RMBS transactions when applying its updated methodology and assumptions for assessing pools of Australian residential loans. The transactions have adequate credit support and cash flows at the respective rating levels, after applying the updated criteria, which include a revised method of assessing loan-to-value, the application of changing house price values in determining default frequency and loss severity, and an estimate of house price overvaluation (OUV) of 22%. The OUV measure is intended to reflect how much a market is above or below a longer-term measure of price to income. Some ratings are constrained below the level that cash flows alone support due to other risk considerations such as sensitivities to the outlook for yield, arrears, pool concentrations, and absolute size of credit support. Ratings Raised And Removed From UCO Series 2021-1 Harvey Trust Class D: to A (sf) from BBB+ (sf) Class E: to BBB (sf) from BB+ (sf) Ratings Affirmed And Removed From UCO ABA Trust 2023-1 Class A: AAA (sf) Class AB: AAA (sf) Class B: AA (sf) Class C: A (sf) Class D: BBB (sf) Class E: BB (sf) Barton Series 2017-1 Trust Class B: AA+ (sf) Class C: A+ (sf) Barton Series 2019-1 Trust Class B: AA+ (sf) Class C: A+ (sf) Barton Series 2023-1 Trust Class B: AA+ (sf) Class C: A (sf) Series 2017-1 Harvey Trust Class C: A+ (sf) Series 2018-1 Harvey Trust Class B: AA+ (sf) Class C: A+ (sf) Series 2021-1 Harvey Trust Class B: AA+ (sf) Class C: A+ (sf) WB Trust 2008-1 Class A: AAA (sf) Ratings Affirmed Barton Series 2017-1 Trust Class A-1: AAA (sf) Class A-2: AAA (sf) Class AB: AAA (sf) Barton Series 2019-1 Trust Class A-1: AAA (sf) Class A-2: AAA (sf) Class AB: AAA (sf) Barton Series 2023-1 Trust Class A: AAA (sf) Class AB: AAA (sf) Series 2017-1 Harvey Trust Class A1: AAA (sf) Class A2: AAA (sf) Class AB: AAA (sf) Class B: AAA (sf) Series 2018-1 Harvey Trust Class A: AAA (sf) Class AB: AAA (sf) Series 2021-1 Harvey Trust Class A: AAA (sf) Class AB: AAA (sf) BUSTECH SA: GoZero Group's Acquisition Bid Approved --------------------------------------------------- Manufacturers' Monthly reports that following a meeting of creditors on Sept. 16, GoZero Group's bid to acquire leading bus manufacturer BusTech has been approved. The acquisition is set to make GoZero Group the largest bus manufacturer in Australia, the report says. According to the report, the deed of company arrangement is expected to be finalised in the coming days, pending the successful conclusion of discussions with state governments. "We need the state governments to demonstrate their ongoing support for the transaction to ensure that the workers remain employed in Adelaide and Brisbane, and to ensure that BusTech remains a local bus manufacturer for many years to come," the report quotes GoZero group managing director, Stephen Cartwright OAM, as saying. This acquisition substantially bolsters GoZero Group's Australian bus manufacturing capability, with BusTech's factories in South Australia and Queensland complementing GoZero's established Nexport bus factory in Western Sydney, Manufacturers' Monthly relates. "This is an important acquisition for GoZero Group," said Mr. Cartwright. "Not only will it increase our opportunity to service the growing national market for low and zero emission buses, but it will protect local manufacturing jobs in both Queensland and South Australia at a time when the employment market remains uncertain. "We are rapidly scaling up to be able to meet increasing demand from State Governments, Councils and the private sector, increasing our investment in factories and people ensuring we have the scale and capacity to deliver Australian made world class buses. "This acquisition is a testament of great confidence in the future of the bus manufacturing sector in Australia, and the message to all tiers of government is clear, ‘we support a Future Made in Australia, and we stand ready to help you reach your strategic zero emission targets' and provide safer, cleaner public transport for all Australians. "For every bus we build in Australia, five Australian jobs are created or retained. Buses are the most used mode of public transport ahead of all other modes," said Cartwright. "In NSW alone, buses account for well over 40 per cent of all public passengers, making over 300 million journeys a year. "Having a strong and predictable pipeline of bus orders is the key to the sustainability of local bus manufacturing, the creation of jobs (including 4-year apprenticeships) and the renewal of the public transport fleet with low and zero emissions buses." Manufacturers' Monthly adds that Mr. Cartwright explained that the acquisition of BusTech would go a long way to solving the local bus manufacturing sector's ‘chicken and egg' problem, where Governments' often expect manufacturers' to have already invested in scaled capability prior to being offered new bus orders. Mr. Cartwright said: "GoZero Group's manufacturing strategy is to maximise local supply chain content in buses, supplemented with select strategic collaborations with proven international suppliers." Ben Verney of Melbourne-based GreyHouse Partners were appointed administrator of BusTech SA and QLD on Aug. 12, 2024. CAPITAL T: First Creditors' Meeting Set for Sept. 26 ---------------------------------------------------- A first meeting of the creditors in the proceedings of Capital T Steel Fixing Pty Ltd will be held on Sept. 26, 2024 at 10:30 a.m. at the offices of Worrells at Level 2 AMP Building, 1 Hobart Place in Canberra. Stephen John Hundy of Worrells was appointed as administrator of the company on Sept. 16, 2024. CBD CONTRACTING: Second Creditors' Meeting Set for Sept. 23 ----------------------------------------------------------- A second meeting of creditors in the proceedings of CBD Contracting Group Pty Ltd has been set for Sept. 23, 2024 at 11:00 via teleconference only. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Sept. 20, 2024 at 4:00 p.m. Stephen Dixon of Hamilton Murphy was appointed as administrator of the company on Aug. 19, 2024. HIGHWAY ADVOCATES: Second Creditors' Meeting Set for Sept. 23 ------------------------------------------------------------- A second meeting of creditors in the proceedings of Highway Advocates Pty Ltd has been set for Sept. 23, 2024 at 2:30 p.m. via teleconference facilities. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Sept. 22, 2024 at 5:00 p.m. Jason Walter Bettles of Worrells was appointed as administrator of the company on Sept. 23, 2024. RURAL LIQUID: Second Creditors' Meeting Set for Sept. 25 -------------------------------------------------------- A second meeting of creditors in the proceedings of Rural Liquid Fertilisers Pty Ltd has been set for Sept. 25, 2024 at 11:00 a.m. at Level 4, 673 Murray Street in West Perth 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 Sept. 24, 2024 at 4:00 p.m. Shaun William Boyle and Giovanni Maurizio Carrello of BRI Ferrier were appointed as administrators of the company on Aug. 19, 2024. SHANE'S TREES: First Creditors' Meeting Set for Sept. 25 -------------------------------------------------------- A first meeting of the creditors in the proceedings of Shane's Trees Pty Ltd will be held on Sept. 25, 2024 at 2:00 p.m. at the offices of Level 3, 12 Short Street in Southport. Matthew John Bookless and Anne Meagher of SV Partners were appointed as administrators of the company on Sept. 13, 2024. ========= C H I N A ========= CHINA VANKE: Fitch Lowers LongTerm IDR to 'B+', Outlook Negative ---------------------------------------------------------------- Fitch Ratings has downgraded Chinese homebuilder China Vanke Co., Ltd.'s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to 'B+', from 'BB-'. The Outlook is Negative. Fitch has also downgraded the Long-Term IDR on China Vanke's wholly owned subsidiary, Vanke Real Estate (Hong Kong) Company Ltd (Vanke HK), to 'B', from 'B+', and downgraded Vanke HK's senior unsecured rating and the rating on the outstanding senior notes to 'B' with a Recovery Rating of 'RR4', from 'B+'. The Outlook on the IDR is Negative. The downgrade reflects ongoing pressure on China Vanke's liquidity due to lower sales than Fitch anticipated and cash flow generation in 1H24. Fitch believes the company's ability to maintain access to onshore secured funding and proceeds from contracted asset disposals can help address its sizeable debt maturities in 2025, although the liquidity buffer is diminishing. The Negative Outlook reflects the uncertainty surrounding the stabilisation of China Vanke's and the industry's sales in the near to medium term. A further decline in sales and/or cash flow generation below its expectations may lead to more pressure on liquidity and negative rating action. Key Rating Drivers Reduced Liquidity Buffer: Fitch believes China Vanke's liquidity buffer has shrunk as a result of rising capital-market debt maturities in 2025, and lower sales and cash flow generation in 1H24. China Vanke reported unrestricted cash/short-term debt of 0.9x at end-June 2024, from 1.0x at end-March 2024. Fitch believes China Vanke has sufficient liquidity to repay its capital-market debt of CNY36 billion maturing in 2025 despite the fall in the liquidity ratio, as its onshore banking access continues to be robust and its asset-disposal plan remains on track. Uncertain Sales Outlook: Fitch have revised its sales forecast downward to -35% in 2024, from -30%, and to -20% in 2025, from -5%. China Vanke's sales fell by 34% yoy to CNY164 billion in 8M24, slightly outperforming the 37% decline among the top 100 property developers, according to China Real Estate Information Corp. However, uncertainties remain regarding China Vanke's sales performance for the remainder of 2024 and 2025. Stabilising Free Cash Flow: Fitch expects the company to generate neutral free cash flow in 2H24 and 2025, following negative free cash flow of CNY16 billion in 1H24. The outflow in 1H24 was attributed to weak sales, while construction-related expenditure remained substantial. Fitch believes construction cash outflows will decline in line with sales in 2H24, as Fitch expects a 40% reduction in the delivery of completed units. Fitch expects China Vanke to continue limiting its land acquisitions to prioritise liquidity for capital-market debt repayment. Stable Secured Funding Access: Fitch expects China Vanke to continue having access to onshore secured bank funding, as it demonstrated its ability to refinance unsecured loans with a net increase of CNY63 billion of secured bank borrowings in 1H24, with an average interest cost of 3.66% for new financing. The company also said it has sizeable unencumbered investment property assets valued at nearly CNY100 billion, which can be collateralised to secure asset-pledged IP loans for additional liquidity. Asset-Disposal Plan on Track: China Vanke's asset disposal has progressed more rapidly than Fitch had anticipated. The company reported that it contracted CNY20.4 billion in asset sales in January to July 2024, and management expects a substantial amount of the sales contracted to be received in the next 12 months. Vanke continues to pursue further asset disposals, which may bolster its liquidity and assist in repaying its large capital-market debt maturities in 2025, although these potential disposals are not included in its model estimates. Subsidiary's Ratings Notched Down: Vanke HK is China Vanke's sole offshore financing platform. The subsidiary is assessed under the "stronger parent" path in its Parent and Subsidiary Linkage Rating Criteria. The ratings of Vanke HK are rated one notch below that of its parent, based on its assessment of 'Medium' legal, strategic and operational incentives for the parent to provide support. Derivation Summary China Vanke's ratings are constrained by its liability and cash flow profile amid substantial capital-market debt maturities in 2025. China Vanke's liquidity profile is weaker than that of Longfor Group Holdings Limited (BB+/Negative), as indicated by a lower ratio of unrestricted cash to short-term debt. Key Assumptions Fitch's Key Assumptions Within Its Rating Case for the Issuer: - Sales to drop by 35% in 2024 and a further 20% in 2025 (1H24: 38% drop). - Gross profit margin of 8% (1H24: 7%) and EBITDA margin after land appreciation tax of 2%-4% (1H24: 1%) in 2024-2026. - Construction cash outflow at 75%-80% of sales proceeds in 2024 and 2025, and 60%-70% in 2026. Recovery Analysis The recovery analysis assumes that Vanke HK would be liquidated in bankruptcy. The liquidation value approach usually results in a much higher value than the going-concern approach, given the nature of homebuilding. Fitch has assumed a 10% administrative claim. Liquidation Approach The liquidation estimate reflects Fitch's view of the value of balance-sheet assets that can be realised in sale or liquidation processes conducted during a bankruptcy or insolvency proceeding and distributed to creditors. - 50% advance rate applied to net inventory, net of margin-adjusted customer deposits. Fitch generally applies higher rates to completed properties than properties under development. No inventory breakdown was provided for Vanke HK and Fitch follows the 50% Fitch generally uses for PUD. - 50% advance rate applied to net joint-venture assets, largely comprising Vanke HK's equity stake in GLP Holdings, L.P. at a book value of CNY17 billion. - 50% advance rate applied to property, plant and equipment, which mainly consist of land and buildings of insignificant value. - 0% advance rate applied to excess cash. China's homebuilding regulatory environment means that available cash, including pre-sales that are regulated as cash, is typically prioritised for project completion, including payment for trade payables. Net payables (trade payables - available cash) are included in the debt waterfall ahead of secured debt. However, Fitch does not assume that available cash in excess of outstanding trade payables is available for other debt-servicing purposes and therefore apply an advance rate of 0%. Vanke HK's bank loans are offshore unsecured bank loans that rank pari passu with its offshore bonds. The allocation of value in the liability waterfall results in a Recovery Rating of 'RR4' for the offshore senior unsecured debt. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade: - Weaker contracted sales and/or free cash flow generation than Fitch expected - Deterioration in liquidity or funding access Vanke HK's rating could be downgraded if incentives for China Vanke to support Vanke HK weaken. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade: The Outlook will be revised to Stable if the negative sensitivities are not met. Liquidity and Debt Structure Weakened Liquidity: China Vanke reported CNY90 billion of cash at end-June 2024, including regulated pre-sale funds that can cover its short-term debt by 0.9x. Fitch believes the group will use its cash on hand and additional onshore bank loans to repay its capital-market debt maturing in a year, which amounted to CNY20 billion at end-June 2024. Issuer Profile China Vanke is one of China's top-three developers by contracted sales with a nationwide footprint. Its main businesses are real-estate development and property services. Vanke HK is China Vanke's main offshore fundraising entity. Summary of Financial Adjustments Fitch revalued Vanke HK's investment in GLP based on the latest transaction value, which resulted in an increase in joint-venture investment value of CNY19 billion in 2022 and CNY14 billion in 2023. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- China Vanke Co., Ltd. LT IDR B+ Downgrade BB- LC LT IDR B+ Downgrade BB- Vanke Real Estate (Hong Kong) Company Ltd LT IDR B Downgrade B+ senior unsecured LT B Downgrade RR4 B+ FOSUN INT'L: CapitaLand in Talks to Buy Minority Stake in Club Med ------------------------------------------------------------------ Bloomberg News reports that Singapore's CapitaLand Investment Ltd. is in advanced talks to buy a minority stake in French luxury resort chain Club Med SAS from its Chinese owner Fosun International Ltd., according to people with knowledge of the matter. Bloomberg relates that the real estate investment firm, part of Temasek Holdings Pte-owned conglomerate CapitaLand Group Pte, is seeking to acquire from 20% to 30% in the hotelier for several hundred million euros, the people said, asking not to be identified because the information is private. The Singaporean firm has emerged as the likeliest buyer for the stake after outbidding other rivals including private equity firms, the people said. Talks are still ongoing and no final decisions have been made, the people said, Bloomberg relays. According to Bloomberg, Fosun International has stepped up efforts to lower its debt burden, including asset disposal and reduced borrowing. Progress on that front has helped it become one of the few Chinese conglomerates to witness a recovery in global investor confidence in recent years. Fosun, backed by billionaire Guo Guangchang, owns Club Med through its listed leisure arm Fosun Tourism Group. Club Med is known for its all-inclusive resorts offering a range of leisure activities from fine dining and massages to yoga, scuba diving, and baby gym classes. It operates over 60 resorts globally in destinations including the French Alps and the Maldives, according to its website. CapitaLand Investment, which was listed in late-2021 as part of a major restructuring at CapitaLand Group, has been facing market pressure over its sizeable investments in China, which is experiencing a major property downturn, according to Bloomberg. CapitaLand Group is owned by Temasek, which also holds a majority stake in the investment arm. About Fosun International Fosun International Limited provides diversified services. The Company offers products and services for families in health, happiness, and wealth businesses. Fosun International serves clients worldwide. As reported in the Troubled Company Reporter-Asia Pacific in early June 2024, S&P Global Ratings affirmed its 'BB-' long-term issuer and issue credit ratings on China-based investment holding company, Fosun International Ltd. The stable outlook reflects S&P's expectation that the company will be able to manage its upcoming maturities and gradually reduce holding company debt over the next 12-18 months. KAISA GROUP: Majority of Creditors Support Debt Restructuring Plan ------------------------------------------------------------------ South China Morning Post reports that Kaisa Group surged by as much as 42 per cent in Hong Kong trading as traders bet the Chinese developer will overcome its financial crisis after enough creditors consented to its proposed debt restructuring plan. The Post relates that Kaisa said investors holding 75.11 per cent of its debt and 81.07 per cent of another batch of debt have agreed to support the group's workout plan, according to an exchange filing on Sept. 16. The consent is a critical lifeline for the Shenzhen-based home builder, after some hostile creditors sued in Hong Kong to recover their debts. The Post says the group has proposed to issue US$5 billion worth of new bonds maturing in 2027 to 2032, and US$4.8 billion of mandatory convertible bonds to repay creditors. The developer has defaulted on about US$12 billion bonds and other borrowings since 2021, triggered by China's "three red lines" policy to curb excessive leverage in the industry. Kaisa had also defaulted in 2015, when it became the first Chinese developer to renege on offshore dollar bonds. The Post notes that Kaisa ranks as the second-largest issuer of offshore bonds among Chinese developers after China Evergrande Group. Its total liabilities amounted to CNY213 billion (US$27.3 billion) on June 30, according to its financial reports. Its losses widened 36 per cent to almost CNY9 billion in the first half this year, while revenue fell 60 per cent from a year earlier, the Post discloses. Last week, a Hong Kong High Court rescheduled a hearing to wind-up the developer to March 31 next year in a petition that was first initiated by hedge fund Broad Peak Investment in March. Other bondholders, represented by trustee Citicorp International, took over the case when Kaisa failed to repay a US$750 million bond, according to a September 3 exchange filing. About Kaisa Group Kaisa Group Holdings Limited is an integrated real estate company. The Group focuses on urban development and operation. Kaisa Group's real estate business covers the planning, development and operation of large-scale residential properties and integrated commercial properties. As reported in the Troubled Company Reporter-Asia Pacific in July 2023, Kaisa Group said on July 10 a winding-up petition has been filed against it in a Hong Kong court in relation to CNY170 million (US$23.50 million) non-payments on onshore bonds. According to Reuters, Kaisa said the petition was filed by Broad Peak Investment Pte Advisers Ltd at the Hong Kong High Court on July 6, and the issuer of the yuan bonds is its wholly-owned subsidiary, Kaisa Group (Shenzhen) Co Ltd. Kaisa has been working on a debt restructuring for two years after defaulting its $12 billion of offshore debt in late 2021, Reuters said. SHINECO INC: Falls Short of Nasdaq's Minimum Bid Price Requirement ------------------------------------------------------------------ Shineco Inc. disclosed in a Form 8-K filed with the Securities and Exchange Commissin on Sept. 12, 2024, that the Company received on Sept. 3, 2024, a deficiency letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC notifying the Company that, based upon the closing bid price of the Company's common stock for the last 30 consecutive business days, the Company is not currently in compliance with the requirement to maintain a minimum bid price of $1.00 per share for continued listing on The Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(a)(2). The Notice has no immediate effect on the continued listing status of the Company's Common Stock on The Nasdaq Capital Market, and, therefore, the Company's listing remains fully effective. The Company is provided a compliance period of 180 calendar days from the date of the Notice, or until March 3, 2025, to regain compliance with Nasdaq Listing Rule 5550(a)(2). If at any time before March 3, 2025, the closing bid price of the Company's Common Stock closes at or above $1.00 per share for a minimum of 10 consecutive business days, subject to Nasdaq's discretion to extend this period pursuant to Nasdaq Listing Rule 5810(c)(3)(G), Nasdaq will provide written notification that the Company has achieved compliance with the Minimum Bid Requirement, and the matter would be resolved. If the Company does not regain compliance with the Minimum Bid Requirement during the initial 180 calendar day period, the Company may be eligible for an additional 180 calendar day compliance period. To qualify, the Company would be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception of the Minimum Bid Requirement, and would need to provide written notice of its intention to cure the deficiency during the second compliance period, by effecting a reverse stock split, if necessary. The Company will continue to monitor the closing bid price of its Common Stock and seek to regain compliance with all applicable Nasdaq requirements within the allotted compliance periods. If the Company does not regain compliance within the allotted compliance periods, including any extensions that may be granted by Nasdaq, Nasdaq will provide notice that the Company's Common Stock will be subject to delisting. The Company would then be entitled to appeal that determination to a Nasdaq hearings panel. The Company intends to actively monitor the closing bid price of the Common Stock and will evaluate available options to regain compliance with the Minimum Bid Requirement. However, there can be no assurance that the Company will regain compliance with the Minimum Bid Requirement during the 180-day compliance period, secure a second period of 180 days to regain compliance or maintain compliance with the other Nasdaq listing requirements. About Shineco Headquartered in Beijing, People's Republic of China, Shineco, Inc. aims to 'care for a healthy life and improve the quality of life', by providing health and medical products and services to society. Shineco, operating through subsidiaries, has researched and developed 33 vitro diagnostic reagents and related medical devices to date, and the Company also produces and sells healthy and nutritious foods. Singapore-based AssentSure PAC, the Company's auditor since 2021, issued a "going concern" qualification in its report dated Sept. 28, 2023, citing that the Company had net losses of US$13,956,031 and US$27,067,139, and cash outflow of US$5,390,594 and US$5,712,562 from operating activities for the years ended June 30, 2023 and 2022, respectively. The auditor also draws attention to Note 19 of the financial statements, which describes the uncertainty related to the outcome of the lawsuits filed against the Company. These conditions raise substantial doubt about the Company's ability to continue as a going concern. "As disclosed in the Company's unaudited condensed consolidated financial statements, the Company had recurring net losses of US$12.9 million and US$6.9 million, and continuing cash outflow of US$2.9 million and US$2.5 million from operating activities from continuing operations for the nine months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, the Company had negative working capital of US$20.9 million. Management believes these factors raise substantial doubt about the Company's ability to continue as a going concern for the next twelve months. In assessing the Company's going concern, management monitors and analyzes the Company's cash on-hand and its ability to generate sufficient revenue sources in the future to support its operating and capital expenditure commitments. The Company's liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. Direct offering and debt financing have been utilized to finance the working capital requirements of the Company," said Shineco in its Quarterly Report on Form 10-Q for the period ended March 31, 2024. YANKUANG ENERGY: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable ----------------------------------------------------------------- Fitch Ratings has affirmed Yankuang Energy Group Company Limited's Long-Term Foreign-Currency Issuer Default Rating (IDR) and senior unsecured rating at 'BB+'. The Outlook is Stable. The ratings on Yankuang Energy are closely aligned with Fitch's internal assessment of the creditworthiness of its 54.81% parent, Shandong Energy Group Co., Ltd., due to the parent's 'High' strategic and operational incentives to support the subsidiary under the strong parent, weak subsidiary path of Fitch's Parent and Subsidiary Linkage (PSL) Rating Criteria. Fitch assesses the parent's credit profile using a bottom-up approach with a multiple-notch uplift from the ultimate parent, the Shandong State-owned Assets Supervision and Administration Commission (SASAC). Key Rating Drivers Parent's 'Strong' State Linkage: Fitch assesses the government's decision-making and oversight over Shandong Energy as 'Strong' because of full government ownership: 70% by the Shandong SASAC, 10% by Shandong Caixin Asset Management Co. Ltd. and 20% by Shandong Guohui Investment Holding Group Co., Ltd. (BBB+/Stable). The Shandong SASAC appoints the company's management team and supervises operating, investing and financing activities. However, Fitch assesses the precedent of support as 'Not Strong Enough'. The company was established from a state-initiated merger between the old Shandong Energy and the old Yankuang Group, with the Shandong provincial government providing tangible support to both entities, including asset and land injections as well as subsidies. However, support has not been sufficient to boost the company's standalone financial position to a stronger level. Parent's Incentive to Provide Support: Fitch evaluates Shandong Energy's preservation of the government's policy role as 'Not Strong Enough'. Most of Shandong's coal demand is met by supply from other provinces. Hence, Fitch does not expect a default by Shandong Energy to pose a risk to the province's coal supply. In addition, over half of the company's coal production is outside the province, thus limiting its contribution to provincial tax income. It is tasked with improving the province's energy source mix by investing in renewable power, which is insignificant in scale compared to its coal business. Parent's 'Strong' Contagion Risk: Shandong Energy ranks as the largest provincial state-owned enterprise (SOE) in Shandong by revenue and the second largest by assets. It is among the back-bone provincial SOEs and Fitch believes a default would damage investor sentiment in the capital market and disrupt the ability of other local GREs to raise funds in the market. Parent's 'High' Incentive to Support: Fitch assesss Shandong Energy's strategic and operational incentives to support Yankuang Energy as 'High'. Yankuang Energy contributed around 70% of group EBITDA and accounted for 60% of the group's coal sales volume in 2023 after consolidation of Luxi Mining and Xinjiang Neng Hua. Yankuang Energy buys assets from Shandong Energy and pays large dividends to the parent. The two companies share the same chairperson and another two of Yankuang Energy's board members and three board of supervisor members hold positions in Shandong Energy. Fitch assesses Shandong Energy's legal incentives to support Yankuang Energy as 'Low'. Loans guaranteed by Shandong Energy were repaid in 2024, and the parent believes that Yankuang Energy is capable to secure financing without its guarantee. There are cross-default clauses in Shandong Energy's offshore bonds, which Fitch expects to be repaid by end-2024. Larger Scale, Normalised Mining Margin: Fitch expects Yankuang Energy's coal production to be close to 140 million tonnes (mt) in 2024 (1H24: 68mt), up from 110mt in 2023 and 99.5mt in 2022, before low single-digit growth in 2025-2026. Yankuang Energy's production volume in 1H24 and 2023 followed the consolidation of Luxi Mining and Xinjiang Neng Hua and the recovery in Australian mines. However, Fitch expects the mining margin to trend down on normalising coal prices although partly offset by effective cost control measures. The average selling price (ASP) per tonne decreased to below CNY670/t in 1H24, from over CNY830/t in 2023. Fitch expects the full-year 2024 ASP to drop to CNY600/t, before high single-digit declines in 2025 and 2026. As a result, Fitch expects the coal segment margin to be a bit below 35% on average in 2024-2027, down from over 50% on average in 2021-2023. Standalone Credit Profile of 'bb': Fitch assesses Yankuang Energy's Standalone Credit Profile (SCP) as 'bb'. Its SCP is supported by the company's large scale and adequate cost position, but is constrained by high leverage. Fitch expects EBITDA net leverage to stay over 3.0x in 2024-2027 (2023: 2.4x), due to normalised mining profitability and high capex. Nevertheless, Fitch expects the company's EBITDA interest coverage to remain high at over 9.0x (2023: 13.0x) in 2024-2027. Greenhouse Gas Emissions, Air Quality: The company faces pressure due to its revenue concentration in thermal coal, as Fitch expects demand for thermal coal to decline in the medium term because of its high carbon footprint. However, the near-term impact on Yankuang Energy's rating is limited, as the decline in demand is likely to be slow, especially in Asia. Financing for the coal mining segment in China is not constrained as it is in some other countries. Derivation Summary Yankuang Energy's ratings are closely aligned with Fitch's internal assessment of the creditworthiness of Shandong Energy. This reflects the parent's 'High' strategic and operational incentives and 'Low' legal incentive to support Yankuang Energy under the strong parent, weak subsidiary path in its PSL criteria. Key Assumptions Fitch's Key Assumptions Within the Rating Case for the Issuer: - Self-mined coal revenue to decrease by mid-single-digits a year in 2024-2027, as Fitch expects coal's ASP to trend down; - Self-mined coal gross profit margin above 30% on average in 2024-2027, due to coal's lower ASP although partly offset by lower production costs; - Sales volume of produced coal close to 130mt in 2024, before edging up to over 130mt in 2025-2027 as assets ramp up; - Capex averaging more than 15% of revenue a year in 2024-2027. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - Shandong Energy's EBITDA net leverage sustained below 6.5x; - Stronger likelihood of support from the Shandong government to Shandong Energy. Factors that could, individually or collectively, lead to negative rating action/downgrade: - Fitch lowering its internal assessment of Shandong Energy's credit profile, which could occur if the company's EBITDA interest coverage stays below 1.5x, if Shandong Energy's funding capability - excluding Yankuang Energy - deteriorates significantly, or if the likelihood of support from the Shandong government to Shandong Energy weakens. Liquidity and Debt Structure Sufficient Liquidity for Debt Servicing: Yankuang Energy had readily available cash of CNY33.7 billion at end-1H24, enough to cover debt maturing within one year of CNY24.4 billion. In addition, the company had total undrawn bank credit facilities of CNY161.4 billion at end-2023 (end-2022: CNY113.8 billion). These are uncommitted facilities, but Fitch believes they are adequate because committed facilities are uncommon in China. Fitch expects the company to continue to benefit from strong access to domestic funding sources due to its parent's large SOE status. Issuer Profile Yankuang Energy, previously named Yanzhou Coal Mining Company Limited, is a listed company under Shandong Energy, which is the third-largest coal-mining company by production in China. Yankuang Energy is also a major coal-mining company in China, with coal production of 110mt in 2023, and has other businesses such as coal chemical production, transportation and power generation. Summary of Financial Adjustments Shandong Energy and its subsidiaries, other than Yankuang Energy, had CNY26.373 billion deposits in the finance company owned by Yankuang Energy and borrowed CNY6.7 billion from the finance company at end-2023. Fitch deducted the balance of CNY19.6 billion from Yankuang Energy's cash to derive the readily available cash balance at end-2023. Public Ratings with Credit Linkage to other ratings Yankuang Energy's rating is aligned with its parent, based on its assessment of the parent's 'High' strategic and operational incentives to support the subsidiary under the strong parent, weak subsidiary path in its PSL criteria. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations Yankuang Energy has an ESG Relevance Score of '4' for GHG Emissions & Air Quality due to its revenue concentration in thermal coal, which faces the risk of declining demand in the medium term due to its high carbon footprint. This has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. 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 ----------- ------ ----- Yankuang Energy Group Company Limited LT IDR BB+ Affirmed BB+ senior unsecured LT BB+ Affirmed BB+ ZW DATA: Secures $537,636 From Securities Purchase Agreements ------------------------------------------------------------- ZW Data Action Technologies Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that on September 5, 2024, the Company entered into a Securities Purchase Agreement with Optimal Success Investments Limited, a British Virgin Island company, pursuant to which Optimal Success agreed to purchase 358,424 shares of common stock of the Company, par value $0.001 per share for an aggregate purchase price of US$268,818. The closing shall take place on the date mutually agreed by the parties, subject to the closing conditions contained in the Optimal Agreement. On the date that the Optimal Agreement was signed, Optimal Success also entered into a lock-up agreement with the Company, whereby Optimal Success agreed not to transfer the shares until six-month anniversary of the date of the Optimal Agreement. Subsequently, on September 6, 2024, the Company entered into a Securities Purchase Agreement with Amber Strong International Limited, a British Virgin Island company, pursuant to which Amber Strong agreed to purchase 358,424 shares of common stock of the Company, par value $0.001 per share for an aggregate purchase price of US$268,818. The closing shall take place on the date mutually agreed by the parties, subject to the closing conditions contained in the Amber Agreement. On the date that the Amber Agreement was signed, Amber Strong also entered into a lock-up agreement with the Company, whereby Amber Strong agreed not to transfer the shares until six-month anniversary of the date of the Amber Agreement. About ZW Data Action Technologies Beijing, China-based ZW Data Action Technologies Inc., established in 2003, is an ecological enterprise that provides digital services to sales and marketing channels through blockchain, big data, and precision marketing. ZW Data Action is committed to empowering SMEs to achieve more efficient and accurate operations and management, resulting in additional value for clients. Hong Kong, China-based ARK Pro CPA & Co, the Company's auditor since 2023, issued a 'going concern' qualification in its report dated June 28, 2024, citing that the Company has an accumulated deficit from recurring net losses and significant net operating cash outflow for the year ended December 31, 2023. All these factors raise substantial doubt about its ability to continue as a going concern. As of June 30, 2024, ZW Data had $10.8 million in total assets, $5.6 million in total liabilities, and $5.3 million in total stockholders' equity. ========= I N D I A ========= 9PLANETS PRODUCTS: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of 9Planets Products Private Limited (9PPPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.2 CRISIL D (Issuer Not Cooperating) Term Loan 14.9 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with 9PPPL for obtaining information through letter and email dated August 12, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of 9PPPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on 9PPPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of 9PPPL continues to be 'CRISIL D Issuer Not Cooperating'. 9PPPL, incorporated in 2012, manufactures PVC sheets. The company has a manufacturing unit in Khed (Pune). It is promoted by Mr. Shekar Parab and his wife, Ms. Aishwarya Parab. The company started its commercial operations in December 2013. ARADHANA DISTRIBUTORS: CRISIL Cuts Rating on INR5cr Loan to C ------------------------------------------------------------- CRISIL Ratings has revised its rating on the long-term bank facilities of Aradhana Distributors Pvt Ltd (ADPL) to 'CRISIL C Issuer Not Cooperating' from 'CRISIL B-/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL C (ISSUER NOT COOPERATING; Revised from 'CRISIL B-/Stable ISSUER NOT COOPERATING') Proposed Fund- 0.79 CRISIL C (ISSUER NOT Based Bank Limits COOPERATING; Revised from 'CRISIL B-/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with ADPL through letters and emails dated September 10, 2024, July 11, 2024 among others, apart from telephonic communication, for obtaining information. However, the issuer has remained non-cooperative. 'Investors, lenders and all other market participants should exercise due caution while using ratings assigned or reviewed with the suffix 'ISSUER NOT COOPERATING' as these ratings lack a forward-looking component. The ratings are arrived at without any management interaction and are based on best-available or limited or dated information on the company. Such non-cooperation by a rated entity may be the result of deterioration in its credit risk profile'. Detailed rationale Despite repeated attempts to engage with the company's management, CRISIL Ratings did not receive any information on the financial performance or strategic intent of ADPL, which restricts the ability of CRISIL Ratings to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes information available on ADPL is consistent with Assessing Information Adequacy Risk. Based on the last available information CRISIL Ratings has revised its rating on the long-term bank facilities of ADPL to 'CRISIL C Issuer Not Cooperating' from 'CRISIL B-/Stable Issuer Not Cooperating' on account of the suit filed against the company, as mentioned in the defaulter list published by CIBIL. Incorporated in 1997 in Kolkata, ADPL is an authorised dealer of Honda Motorcycle & Scooter India Pvt Ltd. The company also owns an authorised service centre for Mitsubishi Motors Corporation. Operations are managed by Mr Sanjay Patodia. Status of non-cooperation with previous CRA ADPL has not cooperated with Acuite Ratings and Research Ltd, which has classified the company as non-cooperative through release dated September 23, 2017. The reason provided by Acuite Ratings and Research Ltd is non-furnishing of information for monitoring of ratings. ARYAN CONSTRUCTION: ICRA Keeps B+ Debt Ratings in Not Cooperating ----------------------------------------------------------------- ICRA has kept the Long-Term rating of Aryan Construction & Associates in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B+(Stable) ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 5.00 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category Long Term- 30.00 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Bank Guarantee to remain under 'Issuer Not Cooperating' category As part of its process and in accordance with its rating agreement with Aryan Construction & Associates, ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite multiple requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with the aforesaid policy of ICRA, the rating has been continued to the "Issuer Not Cooperating" category. The rating is based on the best available information. Aryan Construction & Associates was formed in 2007. The firm is engaged in civil construction works primarily into construction and up gradation of roads. The firm is enlisted as a Class-1 contractor (for road works) of Public Works Department, Uttarakhand (PWD, Uttarakhand) and Public Works Department, Uttar Pradesh (PWD, UP). The firm participates in tenders issued by Public Works Department, in the state of Uttar Pradesh, Punjab and Rajasthan majorly and undertakes road construction works for the National Highways majorly. The firm has projects in Punjab and U.P. outstanding as of September 2022. The contracts awarded are related to up gradation of roads mainly the national highways. BLACK BURN: ICRA Withdraws B+ Rating on INR11cr LT Loan ------------------------------------------------------- ICRA has withdrawn the ratings assigned to the bank facilities of Black Burn & Co. Private Limited at the request of the company and based on the No Objection Certificate/Closure certificate Mail received from its bankers. However, ICRA does not have information to suggest that the credit risk has changed since the time the rating was last reviewed. The Key Rating Drivers and their description, Liquidity Position, Rating Sensitivities have not been captured as the rated instruments are being withdrawn. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 11.00 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Withdrawn Cash Credit Long Term/ 0.61 [ICRA]B+(Stable)/[ICRA]A4; Short Term- ISSUER NOT COOPERATING; Unallocated Withdrawn Short Term- 3.39 [ICRA]A4 ISSUER NOT Non Fund Based COOPERATING; Withdrawn Others Incorporated in 1982 and promoted by the Kolkata-based Somani family, Black Burn & Co. Private Limited (BBCPL) manufactures injection and compression moulded products, which include GFN liners, nylon bushes, dowels, metre boxes, bobbins, cable ties, special cable ties, loop pins, tag pins, cable clips, self-lubricating polyester resin bushes, high performance polyamide bushes, self-lubricating wearing pieces, fibre glass reinforced plastic product (FRP) drivers' cabins, carton corners etc. The manufacturing facilities of the company are located in Kolkata, West Bengal and at Baddi, Himachal Pradesh. BVL GRANITES: ICRA Keeps B+ Debt Ratings in Not Cooperating ----------------------------------------------------------- ICRA has kept the long-term rating of BVL Granites in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]B+(Stable); ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 28.00 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category Long Term- 3.00 [ICRA]B+ (Stable) ISSUER NOT Unallocated COOPERATING; Rating continues Limits to remain under 'Issuer Not Cooperating' category As part of its process and in accordance with its rating agreement with BVL Granites, ICRA has been trying to seek information from the entity to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite multiple requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with the aforesaid policy of ICRA, the rating has remained as 'Issuer Not Cooperating'. The rating is based on the best available information. BVL Granites was established in 2007 as a partnership firm and is involved in granite quarrying, processing and export. The firm operates out of a plant spread over an area of 18.75 acres with an overall production capacity of 7,43,218 sqm./annum in Prakasam, Andhra Pradesh. BVL Granites is a part of the BVL Group of Companies based in Ongole, Andhra Pradesh. The Group has a major presence in tobacco processing and export, construction, real estate apart from granite quarrying, processing and export. However, each firm is operated independently and transactions, if any, are carried out at arm's length. C P ISPAT: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of CPIPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.2 CRISIL D (Issuer Not Cooperating) Cash Credit 12 CRISIL D (Issuer Not Cooperating) Term Loan 7.8 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with CPIPL for obtaining information through letter and email dated August 12, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of CPIPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on CPIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of CPIPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. CPIPL, incorporated in 2006, manufactures sponge iron. The company commenced commercial production in July 2009 at its facility in Durgapur, West Bengal. CPIPL was promoted by the Kolkata-based Chawla family and was earlier managed by Mr. Amarjeet Chawla. However, in September 2013, the Chawla family leased out the plant to the Durgapur-based Jayshree group owned by Mr. Amit Agarwal and his family. Since September 15, 2013, operations of the plant have been managed by the Jayshree group. In February 2014, the Jayshree group entered into an agreement with the Chawla family to purchase CPIPL with effect from April 2014. CHENAB INDUSTRIES: CRISIL Keeps D Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the ratings on bank facilities of Chenab Industries Private Limited (CIPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 4 CRISIL D (Issuer Not Cooperating) Proposed Cash 5.5 CRISIL D (Issuer Not Credit Limit Cooperating) CRISIL Ratings has been consistently following up with CIPL for obtaining information through letter and email dated August 12, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of CIPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on CIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of CIPL continues to be 'CRISIL D Issuer Not Cooperating'. Promoted by Mr Kush Aggarwal and Mr D S Rana, CIPL is setting up a plant in Govindsar Industrial Area in Kathua, Jammu, to manufacture nylon and poly propylene yarn. Operations begun in April 2017. DELHI INTERNATIONAL: Fitch Affirms 'BB-' IDR, Outlook Positive -------------------------------------------------------------- Fitch Ratings has affirmed Delhi International Airport Limited's (DIAL) Long-Term Issuer Default Rating (IDR) and rating on the senior secured notes at 'BB-'. The Outlook remains Positive. RATING RATIONALE The Positive Outlook is based on Fitch's expectation that DIAL's deleveraging will pick up in the next 12-18 months, following a tariff hike which Fitch expects to be implemented by September 2025. Any significant deviation from its assumptions may result in slower deleveraging than Fitch expects, which may return the rating Outlook to Stable. KEY RATING DRIVERS Traffic Growth to Continue: Revenue Risk - Volume - High Stronger Delhi Airport, India's largest airport, handled over 73 million passengers in the financial year ended March 2024 (FY24). The airport serves as the main gateway to India, with over a quarter of all international passengers to India arriving at Delhi Airport in FY24 its rating case assumes about 9% increase in FY25 passenger traffic to around 80 million. Long-term growth is supported by favourable demographics and consumers' increasing propensity to fly. Tariff Uptick Expected, Awaiting Decision: Revenue Risk - Price - Midrange DIAL operates under a hybrid till regulatory framework with 30% non-aeronautical revenue used for cross-subsidisation. The Airports Economic Regulatory Authority (AERA) has determined that the aeronautical tariffs charged by DIAL must be no less than base airport charges +10% (BAC+10%) as stipulated in the state support agreement between DIAL and the Government of India. The same was approved by AERA for tariffs in control period 3 (CP3) from FY20-FY24. The tariff formula provides a floor to DIAL's airport charges. DIAL expects a more than doubling in tariffs in CP4 from FY25-FY29 due to an increase in its regulated asset base after the current capex cycle and other favourable rulings. DIAL submitted the tariff application for CP4 in May 2024 and expects the tariffs to be implemented by January 2025. However, its rating case assumes the tariffs to double with implementation by September 2025. Capex Cycle Ended: Infrastructure Dev. & Renewal - Midrange DIAL's intensive capex plan in FY20-FY24 involved the construction of a fourth runway, Eastern cross taxiway and expansion of Terminal 1. This has increased the airport's passenger capacity to 100 million from 66 million. DIAL has incurred over INR126 billion on the capacity expansion project. AERA has provided approval for INR91 billion (excluding interest during construction) of the total capex undertaking and Fitch expects balance capex will be approved in CP4. Fitch does not expect significant capex in the medium term . Diversified Funding, Laddered Maturity: Debt Structure - Midrange DIAL has meaningfully diversified its funding and raised number of domestic onshore rupee-denominated non-convertible debentures (NCDs) in recent years, including INR25.2 billion to repay the balance outstanding under USD450 million bond issued by India Airport Infra. DIAL's total debt comprises two US dollar senior secured notes and five rupee-denominated NCDs. DIAL's US dollar bullet bonds are secured with structural covenants, including defined cash waterfall, restrictions on dividend payments, and a fixed-charge coverage ratio test for additional debt, excluding debt incurred for regulated capex. The refinancing risk of the bullet bonds is mitigated by the laddered maturity between 2026 and 2029, and the current airport initial concession term that runs until 2036, indicating access to domestic capital markets. Financial Profile Fitch's base case assumes passenger traffic to reach about 88 million by FY26 and a 100% hike in tariff under CP4. Fitch now assumes a nine-months delay in the release of the CP4 tariff order and, therefore, the increase to be reflected in 4QFY25. Capex is considered in line with DIAL's committed expansion plan. Leverage remains high in the short term, before dropping to 6.1x by FY26 and 4.4x by FY27. Interest coverage ratio is expected to average around 1.4x in next two years. Under Fitch's rating case, Fitch assumes passenger traffic to reach about 83 million by FY26. Similar to the base case, Fitch assumes 100% hike in tariff under CP4 but with 18-months delay in release of the tariff order. Therefore, the tariff increase will be reflected in 3QFY26. Only contracted income from commercial property development has been considered. Leverage remains high in the short term, before reaching below 8.5x by FY26 and 5.9x by FY27. Interest coverage ratio is expected to average around 1.0x in next two years. PEER GROUP Mumbai International Airport Limited (MIAL, senior secured notes BB+/Stable) is DIAL's closest peer. Both airport operators benefit from a solid 'High Stronger' volume risk assessment, with DIAL and MIAL being the largest and second-largest airports in India, respectively. DIAL caters to the national capital region and MIAL to India's financial and industrial hub. Fitch has assessed the price risk at both airports as 'Midrange' because there is some regulatory uncertainty with tariff implementation, but the base airport charges mitigate any downside risk to aeronautical tariff determination. Fitch estimates MIAL's leverage to be much lower, at around 5.4x for the three years from FY25, compared with its forecast that DIAL's leverage will reach 8.5x by FY26 and 5.9x by FY27. MIAL's lower leverage supports its two-notch higher credit assessment. DIAL can also be compared to GMR Hyderabad International Airport Limited (GHIAL, BB+/Stable). DIAL has a larger catchment area than GHIAL, which serves Hyderabad, a vibrant but smaller city than Delhi. DIAL's volume risk is assessed as 'High Stronger' against GHIAL's 'High Midrange'. Both DIAL and GHIAL have the same economic regulatory framework with price risk assessed as 'Midrange'. Fitch expects a hike in DIAL's tariff similar to GHIAL's in the next control period. Both airport operators have completed their major capex cycle. DIAL has a higher rating case leverage in the interim, before it comes down to around 8.5x in FY26. Fitch estimates GHIAL's leverage to reach 5.4x by FY26. The high leverage along with uncertainty on tariff implementation results in a two-notch differential despite of DIAL's better volume risk assessment. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - The Outlook is Positive so Fitch does not expect negative rating action, at least in the short term. However, material deviation from its assumptions on contested monthly annual fee payments during the Covid-19 pandemic period, CP4 tariff hike and release of the tariff order resulting in slower deleveraging than Fitch expects could result in a revision of the Outlook to Stable. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Net debt/EBITDA below Fitch's forecast of 7.5x for a sustained period; - EBITDA/net interest sustained above Fitch's forecast of 1.5x. CREDIT UPDATE Traffic Growth: Passenger traffic volume rose by 7.3% yoy to 24.7 million in April-July 2024. Financial Performance: Aero revenue increased by 13.2% to INR10.6 billion in FY24, from INR9.3 billion a year earlier. The growth was broadly in line with the passenger growth. Non-aero revenue (about 61% of total operating revenue) rose faster at about 19% over the same period. DIAL's EBITDA increased by 29% to INR12.7 billion in FY24, from INR9.8 billion in FY23 Arbitration over Revenue Share Payment: In December 2020, DIAL invoked the force majeure clause to temporarily cease its revenue sharing with the Airports Authority of India (AAI) in the wake of low traffic and revenue following the Covid outbreak. AAI has been challenging DIAL's position in various legal forums. Under the concession agreement, DIAL is required to pay 45.99% of its annual revenue as concession fee to AAI. An arbitration tribunal decision was awarded on 6 January 2024, excusing DIAL from making the monthly annual fee (MAF) payment for 19 March 2020 to 28 February 2022 due to the force majeure clause. It has directed AAI to refund INR5 billion to DIAL for 19 March 2020 to 31 December 2020 and waived the latter's INR12 billion payment for 1 January 2021 to 28 February 2022. Furthermore, the tribunal has allowed an extension in the airport concession period, subject to approval from government authorities, by one year and 11 months - the period excused under force majeure. AAI has moved to the Hon'ble High Court of India to challenge the arbitration decision. Fitch believes that following the recent arbitration decision and earlier high court decision, DIAL has sufficient ground to not pay MAF payments for 19 March 2020 to 28 February 2022 due to the force majeure clause. Therefore, Fitch does not assume any payments in its rating case. Liquidity Position: DIAL had a cash and cash equivalents, including current financial investments, of INR16.6 billion as of June 2024 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 ----------- ------ ----- Delhi International Airport Limited LT IDR BB- Affirmed BB- Delhi International Airport Limited/Project Revenues - First Lien/1 LT LT BB- Affirmed BB- DEWAN CHAND: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Dewan Chand (DC) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 4.5 CRISIL D (ISSUER NOT COOPERATING) Cash Credit/ 2.5 CRISIL D (ISSUER NOT Overdraft COOPERATING) facility Proposed Fund- 2.0 CRISIL D (ISSUER NOT Based Bank Limits COOPERATING) CRISIL Ratings has been consistently following up with DC for obtaining information through letter and email dated August 12, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of DC, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on DC is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of DC continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. DC was established in as a proprietorship concern and was reconstituted in 2009as a partnership firm. The firm constructs buildings in the National Capital Region. It is classified as a 'Class A' contractor by the Public Works Department of Delhi and has bid for various contracts involving construction of government buildings since its inception. The firm has completed prestigious contracts, such as Indian Oil Bhawan, police headquarters, Prastha Bhawan and World Health House. The firm is managed by Mr Vikram Kumar. DRISH SHOES: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Drish Shoes Limited (DSL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bill Discounting 10 CRISIL D (Issuer Not Cooperating) Cash Credit 5 CRISIL D (Issuer Not Cooperating) Export Packing 71.66 CRISIL D (Issuer Not Credit Cooperating) Letter of credit 14 CRISIL D (Issuer Not & Bank Guarantee Cooperating) Term Loan 3.34 CRISIL D (Issuer Not Cooperating) Term Loan 11 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with DSL for obtaining information through letter and email dated August 12, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of DSL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on DSL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of DSL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. DSL, incorporated in 1987, is promoted by Mr I S Paul and Mr Atma Ram Singh. It manufactures leather footwear and finished leather. The manufacturing facilities are at Nalagarh in Himachal Pradesh, Jalandhar in Punjab, and Panchkula in Haryana. EKAM AGRO: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Ekam Agro Private Limited (EAPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4 CRISIL D (Issuer Not Cooperating) Term Loan 11 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with EAPL for obtaining information through letter and email dated August 12, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of EAPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on EAPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of EAPL continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated in 2014, EAPL manufactures edible oil. Its facility is located on Jalalabad road, Mukatsar, Punjab and operates at a capacity of around 150 tonne per day. ENIGMA VENTURES: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Enigma Ventures India Private Limited (EVPL: part of the Kohinoor group) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 10 CRISIL D (Issuer Not Cooperating) Proposed Cash 8 CRISIL D (Issuer Not Credit Limit Cooperating) CRISIL Ratings has been consistently following up with EVPL for obtaining information through letter and email dated August 12, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of EVPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on EVPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of EVPL continues to be 'CRISIL D Issuer Not Cooperating'. For arriving at the ratings, CRISIL Ratings has consolidated the business and financial risk profiles of EVPL, Kohinoor Eximtex Pvt Ltd (KEPL), Energetic Globetex Pvt Ltd (EGPL) and Kapadia Textiles (KT), collectively referred to as the Kohinoor group, as these entities are engaged in similar line of business and have operational linkages. About the Group Incorporated in 2010, EVPL manufactures sarees and dress materials. The manufacturing facility in Surat is managed by Mr Sanjay Juneja and Mr Jitendra Shukla. EGPL, incorporated in 2015, manufactures sarees and ladies' dress material in Surat and is promoted by Mr Juneja and Mr Nikunj Kapadia. Incorporated in 2012, KEPL manufactures fabrics and readymade garments in Surat. Mr Sanjay Juneja and Mr Hiren Kapadia are the promoters. Registered in 2012, KT manufactures sarees and ladies' dress material. The firm is based in Surat. Its partners are Mr. Sanjay Juneja and Mr. Hiren Kapadia. GAURI INTERNATIONAL: CRISIL Keeps D Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Gauri International Private Limited (GIPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 15 CRISIL D (Issuer Not Cooperating) Proposed Long Term 5 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Proposed Long Term 5 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with GIPL for obtaining information through letter and email dated August 12, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of GIPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of GIPL continues to be 'CRISIL D Issuer Not Cooperating'. For arriving at its rating, CRISIL Ratings has combined the business and financial risk profiles of GIPL and Drashti Innovative Syncotex Pvt Ltd (DISPL). This is because the two companies, together referred to as the Gauri group, have common promoters, are in the same business, and have business and operational synergies. About the Group Incorporated in 2010 and based in Surat, Gujarat, GIPL manufactures and trades in fabrics used in home furnishing, readymade garments, and dress material. DISPL, also based in Surat and incorporated in 2013, is in a similar line of business. The manufacturing facilities of both companies are in Surat. GIPL is promoted by Mr. Dhaval Nakrani and DISPL is promoted by Mr. Nakrani and Mr. Vishal Balar. GINI & JONY: NCLT Starts Corporate Insolvency Resolution Process ---------------------------------------------------------------- The Free Press Journal reports that the National Company Law Tribunal (NCLT) has initiated a Corporate Insolvency Resolution Process (CIRP) against the well-known children's fashion brand, Gini & Jony Limited. The decision comes after Pooja Clothing Private Limited, a Bhandup-based firm and operational creditor, filed a petition against the company over an alleged payment default of INR76,38,073. In its ruling, the NCLT directed Gini & Jony Limited to make an immediate public announcement regarding the initiation of the CIRP, the report says. Additionally, the tribunal ordered Pooja Clothing to deposit INR3 lakhs to cover the initial costs of the CIRP. This amount is to be paid to the Interim Resolution Professional appointed to oversee the insolvency proceedings. According to the report, the dispute stems from a business arrangement between the two companies, formalized through a Memorandum of Understanding (MoU) on November 4, 2017. According to the MoU, Gini & Jony was responsible for providing patterns, measurements, embroidery, print designs, samples, and technical packs to Pooja Clothing for garment production. Gini & Jony would then issue purchase orders, based on which Pooja Clothing would proceed with manufacturing and delivering the garments. The Free Press Journal relates that Pooja Clothing claims it fulfilled its obligations by manufacturing and supplying garments to Gini & Jony, following required inspections and approvals. According to the petition, between Feb. 16, 2018, and Nov. 16, 2018, Pooja Clothing raised invoices totaling INR1,28,85,507. After accounting for payments and adjustments, an outstanding amount of INR76,38,073 remained, the report notes. The last payment of INR5 lakhs was made by Gini & Jony on Jan. 11, 2019. Despite numerous reminders, including emails, phone calls, and personal visits, the remaining amount was not paid, leading Pooja Clothing to file a police complaint in 2019, alleging cheating, criminal intimidation, and breach of trust. Gini & Jony, however, denied the allegations, arguing that the petition was filed with "animus possidendi," a Latin term meaning "intent to possess" or "intent to occupy," and claimed it was not maintainable and should be dismissed, the report relates. The company refuted all accusations made by Pooja Clothing. The NCLT, after hearing the arguments advanced before it decided to initiation of the CIRP against Gini and Jony Ltd. Gini & Jony Limited retails apparels and accessories. The Company offers jacket, t-shirt, jacket, track pants, dresses, skirts, and tops. Gini & Jony Ltd serves customers in India. GIRINDRA HOSPITALITY: CRISIL Keeps D Rating in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Girindra Hospitality Private Limited (GHPL) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 6.5 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with GHPL for obtaining information through letter and email dated August 12, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of GHPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GHPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of GHPL continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated in 2013, GHPL is setting up a 50-room five-star hotel, The Garuda Hotel, in Thrissur, Kerala. The hotel is currently in the final stage of construction and is expected to be operational from November 2015. The company is promoted by Mr. Girijavallaban V K. GMR HYDERABAD: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable --------------------------------------------------------------- Fitch Ratings has affirmed GMR Hyderabad International Airport Limited's (GHIAL) Long-Term Issuer Default Rating (IDR) and the rating on its outstanding senior secured notes at 'BB+'. The Outlook is Stable. RATING RATIONALE The rating affirmation reflects continued traffic growth, GHIAL's near-completion of its expansion capex and a steadily improving regulatory environment with the implementation of tariffs for the third control period (CP3) from the financial year ended March 2022 (FY22) onwards. The Stable Outlook reflects adequate rating headroom, with rating case forecasting leverage to decline further in the next three years. KEY RATING DRIVERS Revenue Risk - Volume - High Midrange Growth Momentum to Continue Fitch expects total passenger traffic at GHIAL to rise to 27 million in FY25 from 25 million in FY24. Total passenger traffic in FY24 beat Fitch's rating case projection of 24 million led by strong growth in both domestic and international passengers. Total passenger traffic in 1QFY25 was 6.8 million, rising by 10% yoy. GHIAL is exposed to significant carrier concentration risk with IndiGo dominating the Indian domestic market. Still, the airport is a major international gateway for the states of Telangana and Andhra Pradesh, with limited competition from other cities and other modes of traffic. Revenue Risk - Price - Midrange Regulated Aeronautical Tariffs Tariffs under CP3 (FY22-FY26) were approved on 31 August 2021 under GHIAL's hybrid till regulatory framework, with 30% non-aeronautical revenue used for cross-subsidisation with effect from FY22. CP3 raised the user development fee, which forms the majority of aeronautical revenue, by around 100%, resulting in a significant increase in aeronautical revenues. A number of pending legal and regulatory issues were also dealt with under CP3. Recently, a tribunal adjudicated on key pending issues raised by GHIAL, which Fitch expects to be dealt with under CP4. GHIAL has entered in to sub-concession agreements with its parent to operate and manage duty-free, car parking, retail stores and related services. The sub-concession agreements will be effective by FY25. GHIAL says its share of revenue from the concession is marginally higher or remains same after these sub-concession agreements. Infrastructure Dev. & Renewal - Midrange Next Expansionary Capex in FY28 The ongoing capex is aimed at doubling the capacity for air cargo, which GHIAL expects to be completed in next three years and to be funded through internal accruals. Its rating case projects the Hyderabad airport will reach its design capacity of 34 million passengers by FY28. The current terminal and runway can handle more than the design capacity. Fitch expects GHIAL to resume expansionary capex in FY28. Debt Structure - Midrange Protection for Debt holders, manageable refinance risk GHIAL's total debt comprises two US dollar senior secured notes and four rupee non-convertible debentures (NCDs) that all share security on pari passu basis. The US dollar bonds have protective structural covenants including a defined cash waterfall, restrictions on dividends and a fixed-charge cover ratio test for additional debt. GHIAL has reduced average interest cost by partially prepaying US dollar bonds with cheaper onshore bonds. A long concession tenor until 2068, well-spread maturity profile and healthy financial profile mitigate refinancing risk Financial Profile Under the base case, the traffic assumptions are broadly in line with management estimates. GHIAL will reach its maximum capacity of 34 million passengers by 2026. Only contracted revenue from commercial property development has been considered. The net debt/EBITDA ratio is expected to reach 4.8x by FY25 and 4.2x by FY26. The rating case assumes traffic will reach its maximum capacity by FY28. Only contracted revenue from commercial property development has been considered. The net debt/EBITDA ratio is projected to reach 5.9x by FY25 and 5.4x by FY26. PEER GROUP Mumbai International Airport Limited (MIAL, senior secured rating: BB+/Stable) is one of GHIAL's closest Indian peers. MIAL has a larger catchment area than GHIAL, as Mumbai is a bigger and economically more vibrant city than Hyderabad. Fitch assesses the price risk for both airport operators as 'Midrange'. Fitch estimates GHIAL's leverage in FY25 at 5.9x, marginally higher than MIAL's leverage of 5.3x in the same year. GHIAL can also be compared with Delhi International Airport Limited (DIAL, BB-/Positive). DIAL has a 'High Stronger' volume risk assessment due to its strategic location and status as the largest airport in India. Both airports have a 'Midrange' price risk assessment. GHIAL has received the CP3 order, effective from FY22, while DIAL's next control period tariff is due soon. The base airport charges for DIAL mitigate any downside risk to the aeronautical tariff determination. DIAL's leverage will remain high in the short term at around 10.0x in FY25, relative to GHIAL's leverage of 5.9x in FY25. DIAL's higher leverage is compensated partially by its larger catchment area and its volume risk assessment. The debt structure is similar for both airports, mainly consisting of US dollar bullet notes and rupee NCDs with cash waterfall mechanisms. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Forecast net debt/EBITDA above 7.0 x for a sustained period. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Forecast net debt/EBITDA below 5.0x for a sustained period. - Forecast EBITDA/net interest sustained above 2.0x. CREDIT UPDATE Total passenger traffic from 1 April to 31 July 2024 increased by 10.0% yoy to 9.0 million, supported by both domestic and international passengers. Revenue increased by around 42% to INR27.1 billion in FY24 from INR19.1 billion in FY23. In 1QFY25, revenue rose 37% yoy to INR8.1 billion. EBITDA increased by 96% in FY24 to INR13.1 billion and rose by 25% in 1QFY25 to INR4.7 billion. GHIAL has cash and cash equivalents (including financial investments) of approximately INR16 billion at end-June 2024. 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 ----------- ------ ----- GMR Hyderabad International Airport Limited LT IDR BB+ Affirmed BB+ GMR Hyderabad International Airport Limited/ Airport Revenues – First Lien/1 LT LT BB+ Affirmed BB+ GOPAL AUTO: ICRA Keeps B+ Debt Ratings in Not Cooperating --------------------------------------------------------- ICRA has kept the Long-Term rating of Sri Gopal Auto Centre (SGAC) in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B+(Stable) ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 6.50 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category Long Term- 0.11 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Term Loan to remain under 'Issuer Not Cooperating' category Long Term- 1.39 [ICRA]B+ (Stable) ISSUER NOT Unallocated COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category As part of its process and in accordance with its rating agreement with SGAC, ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite multiple requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with the aforesaid policy of ICRA, the rating has been continued to the "Issuer Not Cooperating" category. The rating is based on the best available information. Sri Gopal Auto Centre (SGAC), a proprietorship firm was constituted in 1993 in Chittoor, Andhra Pradesh. The firm is managed by Mr D. Pundarikakshaiah and it has a 3S facility located in Palamaneru Road in Chittoor. SGAC is the sole authorized dealer of HMCL in Chittoor. GOUTHAMI HATCHERIES: CRISIL Keeps D Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Gouthami Hatcheries Private Limited (GHPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 16 CRISIL D (Issuer Not Cooperating) Long Term Loan 16.5 CRISIL D (Issuer Not Cooperating) Proposed Long Term 7.12 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with GHPL for obtaining information through letter and email dated August 12, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of GHPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GHPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of GHPL continues to be 'CRISIL D Issuer Not Cooperating'. GHPL, set up in 1999, produces hatching eggs and broiler birds. SFPL, set up in 2009, manufactures poultry feed. The companies are promoted by Mr. D Srinath Reddy and his wife, Ms. D Lokeshwari. GOVAAN STEELS: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Govaan Steels Private Limited (GSPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 10 CRISIL D (Issuer Not Cooperating) Letter of Credit 20 CRISIL D (Issuer Not Cooperating) Long Term Loan 15 CRISIL D (Issuer Not Cooperating) Proposed Cash 7.14 CRISIL D (Issuer Not Credit Limit Cooperating) CRISIL Ratings has been consistently following up with GSPL for obtaining information through letter and email dated August 12, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of GSPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GSPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of GSPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Incorporated in June 2008, GSPL manufactures mild steel billets and thermo-mechanically treated (TMT) bars. GSPL commenced commercial operations in September 2010 and is based in Coimbatore, Tamil Nadu. GUJARAT EXPORT: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Gujarat Export Company (GEC) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Packing Credit 15 CRISIL D (Issuer Not Cooperating) Proposed Long Term 10 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with GEC for obtaining information through letter and email dated August 12, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of GEC, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GEC is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of GEC continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Incorporated in 1998, as a proprietorship firm by Kansagra family of Rajkot, GEC trades in soybean meal, rapeseed, groundnut extraction meal, oil seeds, wheat, and other agricultural products. HBS CITY: CRISIL Keeps D Debt Ratings in Not Cooperating Category ----------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of HBS City Private Limited (HBS) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 0.05 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Term Loan 10.95 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with HBS for obtaining information through letter and email dated August 12, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of HBS, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on HBS is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of HBS continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated in 2008, HBSCPL is a special-purpose vehicle set up by HBS Realtors Pvt Ltd to develop a township project in Panoli, Ankleshwar (Gujarat). It has presently undertaken construction of phase-1 of project which is spread over 8 acres with about 680 saleable units. JAYPEE HEALTHCARE: Max Healthcare to Acquire Stake in Company ------------------------------------------------------------- Business Standard reports that Max Healthcare Institute (MHIL) has entered into a Strategic Collaboration Agreement with Lakshdeep Group, the ultimate promoter group of Jaypee Healthcare (JHL) - which is undergoing Corporate Insolvency Resolution Process (CIRP). This Strategic Collaboration and proposed acquisition will give MHIL a controlling stake in JHL, including its flagship asset, the renowned 500-beds Jaypee Hospital, Noida. Under the agreement, MHIL shall organize debt for repayment of admitted claims of the financial creditors of JHL and proposes to simultaneously acquire ~64% stake in the company, with call and put option for the remaining stake, Business Standard relates. The acquisition is based on an enterprise value of INR1,660 crore, reflecting JHL's strong market position, which includes two operational hospitals i.e. 500-bedsJaypee Hospital, Noida and 200-beds Jaypee Hospital Bulandshahr, built on land parcel of 18 acre and 5.75 acre respectively, according to Business Standard. Further JHL also owns a 100-beds hospital spread over 2.35 acres at Anoopshahar, which is currently non-operational. JHL reported revenue of INR421 crore and EBITDA of INR70 crore for the year 2023-24. According to Business Standard, the transaction, which includes the Strategic Collaboration Agreement and the acquisition of JHL's stake held by financial creditors, shall be consummated in next thirty days in line with the revival plan approved by the Hon'ble National Company Law Appellate Tribunal (NCLAT). Business Standard notes that the revival plan is designed to provide sustainability to the operations of Jaypee Hospitals through appropriate measures to enhance operational efficiency while building confidence among various stakeholders. With the proposed transaction and collaboration with Max Healthcare as strategic partner to the revival plan, JHL is well positioned for potential growth and continued services to the community. India-based Jaypee Healthcare Limited provides dental care, liver transplant, radiology and imaging, chest surgery, ophthalmology, pain management, plastic surgery, diabetes, kidney diseases, spine, cancer treatment, and rehabilitation services. Jaypee Healthcare commenced insolvency proceedings on June 14, 2024. JHUNJHUNWALA OIL: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Jhunjhunwala Oil Mills Limited (JOML) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 32 CRISIL D (Issuer Not Cooperating) Cash Credit 1 CRISIL D (Issuer Not Cooperating) Letter of Credit 2 CRISIL D (Issuer Not Cooperating) Proposed Long Term 1.31 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Proposed Long Term 0.19 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Standby Line 3.5 CRISIL D (Issuer Not of Credit Cooperating) Term Loan 18.5 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up JOML for obtaining information through letter and email dated August 12, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of JOML, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on JOML is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of JOML continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. JOML was established by Mr. Vishwanath Jhunjhunwala in 1973. The company manufactures and refines edible oil, mainly rice bran oil, through the solvent extraction process. JOML also has a cattle-feed plant, which processes de-oiled cake, a by-product of solvent extraction. The company has solvent extraction and cattle-feed manufacturing facilities in Varanasi (Uttar Pradesh) and a rice milling unit in Kudra (Bihar). LAVASA CORP: NCLT Revives Insolvency, Rejects Darwin Platform Plan ------------------------------------------------------------------ Hindustan Times reports that the Mumbai Bench of National Company Law Tribunal (NCLT) comprising Anil Raj Chellan (technical member) and Kuldip Kumar Kareer (judicial member) on Sept. 13 ordered dismissal of the resolution application of Darwin Platform Infrastructure Ltd (DPIL) for acquisition of the Lavasa Hill City for failing to implement the resolution plan. It restored the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code (IBC) with Shailesh Verma as resolution professional (RP), Hindustan Times relates. According to Hindustan Times, the order stated, ". . . The period from July 13, 2021, from the date of submission of the plan by the resolution applicant (DPIL), as successful resolution applicant (SRA), till January 3, 2022, the date of filing of the plan approval application, shall stand excluded having been rendered redundant owing to the failure of the SRA in the implementation of the resolution plan. The monitoring committee shall stand dissolved with immediate effect." The order was issued in response to a petition filed by the applicants or intervenors who are a group of more than 500 homebuyers against DPIL, the report says. Lavasa Hill City at Mulshi taluka of Pune district was formed as a private corporation by investors to build and manage a hillside resort. However, the project bombed after completing a fifth of its first phase with liabilities mostly owing to financial institutions. The project was admitted for insolvency by the NCLT in August 2018 and Mumbai-based Darwin Platform Infrastructure Ltd on December 2021 took over the privately-built township at a bidding price of INR1,814-crore approved by the committee of creditors (CoC), Hindustan Times notes. The takeover had brightened up the chances of residents who had been at the receiving end of infrastructural bottlenecks for over ten years. Investors who purchased properties, which couldn't be built, had expressed hope that the project would be completed, the report says. Hindustan Times adds that the order stated, "We found that the SRA has failed to take any positive action to implement the approved resolution plan without any justifiable reasons. No purpose would be served by granting further time to SRA for implementation of the resolution plan. Any further delay in the resolution of the corporate debtor would not only severely affect the interest of various stakeholders, but would also render the resolution impossible. Thus, the prayer of the SRA seeking an extension of time for the implementation of the approved resolution plan is hereby rejected." The tribunal held the creditors' decision to invoke the performance bank guarantees worth INR25 crore by DPIL citing non-compliance of the insolvency process, the report says. Hindustan Times says the applicants/intervenors had filed appeals before the NCLT wherein the homebuyers alleged serious irregularities in the resolution plan. With the bankruptcy court dismissing Darwin Platform Infrastructure Ltd's (DPIL) plea, the stakeholders will have to again start the sale process, Hindustan Times adds. About Lavasa Corp Lavasa Corporation Limited develops and manages a hill city in India. Its portfolio includes R&D and training centers, IT and biotech industry, KPOs and those related to art, fashion, and animation companies; hospitality, tourism, health, education, and IT and ITES industries; lakeside apartments, villas, rental housing, and retiree housing; and studio apartments, starter homes, and workforce apartments. Lavasa is a subsidiary of construction major Hindustan Construction Company (HCC) and entered insolvency proceedings at the National Company Law Tribunal, Mumbai, in August 2018. As reported in the Troubled Company Reporter-Asia Pacific in late July 2023, the National Company Law Tribunal has approved a INR1,814 crore resolution plan for the private hill station Lavasa, nearly five years after the initiation of the insolvency resolution process. Darwin Platform Infrastructure Ltd. (DPIL) has emerged as the winning bidder for Lavasa Corp., which is primarily into the business of the development of the private hill station by the same name in Pune, according to BQ Prime. LOHR INDIA: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Lohr India Automotive Private Limited (LIAPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 9.5 CRISIL D (Issuer Not Cooperating) Proposed Long Term 3.5 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with LIAPL for obtaining information through letter and email dated August 12, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of LIAPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on LIAPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of LIAPL continues to be 'CRISIL D Issuer Not Cooperating'. For arriving at the rating, CRISIL Ratings has combined the business and financial risk profiles of HLM India Pvt Ltd (HIPL), LIAPL, and Transport Solutions India Pvt Ltd (TSIPL). This is because the three companies, together referred to as the TSI group, are in similar lines of business and have significant intercompany transactions. Also, TSIPL has extended corporate guarantee for bank loan facilities of LIAPL and HIPL. The TSI group was established in 2006 and manufactures carriers used in logistic services. It manufactures tippers and trailers under TSIPL, car and truck carriers under LIAPL, and refrigerated carriers under HIPL. Its promoters have industry experience of over four decades. MAHAKALESHWAR TOLLWAYS: ICRA Keeps D Rating in Not Cooperating -------------------------------------------------------------- ICRA has kept the Long-Term rating of Mahakaleshwar Tollways Private Limited (MTPL) in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Issuer Rating - [ICRA]D; ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category As part of its process and in accordance with its rating agreement with MTPL, ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite multiple requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with the aforesaid policy of ICRA, the rating has been continued to the "Issuer Not Cooperating" category. The rating is based on the best available information. MTPL is a special purpose vehicle (SPV) promoted majorly by Bharat Road Network Limited (BRNL) and SREI Infrastructure Finance Limited, for implementing a BOT toll road project in Madhya Pradesh, along the Indore-Ujjain Road, on SH-27 from km 5/2 at Indore to Km 53 at Ujjain (Total length- 49 km). The 25-year concession agreement for the project was signed in September 2008 with MPRDC, with appointed date of May 2009. The project achieved COD in February 2011. MANIK COMMERCIAL: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Manik Commercial Private Limited (MCPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3 CRISIL D (Issuer Not Cooperating) Long Term Loan 4.9 CRISIL D (Issuer Not Cooperating) Proposed Cash 0.25 CRISIL D (Issuer Not Credit Limit Cooperating) CRISIL Ratings has been consistently following up with MCPL for obtaining information through letter and email dated August 12, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of MCPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MCPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of MCPL continues to be 'CRISIL D Issuer Not Cooperating'. MCPL incorporated in 1996 was primarily engaged in trading of various agriculture products like wheat, maize, jute etc. The company started the commercial production of its rice mill in the current fiscal year having a manufacturing capacity of 20 tonnes per day. NYKA STEELS: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Nyka Steels Private Limited (NSPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 20 CRISIL D (Issuer Not Cooperating) Letter of Credit 20 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with NSPL for obtaining information through letter and email dated August 12, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of NSPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on NSPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of NSPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. NSPL, incorporated in 1995, is currently promoted by Mr Suhail Siddiqui and his brothers Mr Sarfaraz Siddiqui and Mr Asif Siddiqui. The company manufactures mild-steel pipes. It is a part of the Nyka group, also comprising Nyka Engineering Company and Moon Ispat Industries Ltd, which undertakes job work for NSPL. P NARASIMHA: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of P Narasimha Rao and Company (PNRC) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 5.5 CRISIL D (Issuer Not Cooperating) Cash Credit 2.5 CRISIL D (Issuer Not Cooperating) Long Term Loan 1.33 CRISIL D (Issuer Not Cooperating) Proposed Long Term 3.67 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with PNRC for obtaining information through letter and email dated August 12, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of PNRC, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on PNRC is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of PNRC continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. PNRC was set up in 2004 by Mr. P Narasimha Rao and his family members. The firm constructs roads and bridges in Andhra Pradesh and Telangana, and undertakes contract work for the Railways, such as laying and maintenance of railway tracks. It is based in Hyderabad. PANKAJ C: ICRA Lowers Rating on INR4.0cr LT Loan to D ----------------------------------------------------- ICRA has revised the ratings on certain bank facilities of Pankaj C. Patel (PCP), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 4.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating downgraded from Cash Credit [ICRA]B- (Stable) and continues to remain under 'Issuer Not Cooperating' category Long-term– 0.28 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating downgraded from Term Loan [ICRA]B- (Stable) and continues to remain under 'Issuer Not Cooperating' category Short-term– 1.00 [ICRA]D; ISSUER NOT COOPERATING; Non Fund based Rating downgraded from Others [ICRA]A4; ISSUER NOT COOPERATING and continues to remain under 'Issuer Not Cooperating' Category Rationale The rating downgrade reflects Delay in Debt Repayment as mentioned in the publicly available sources. Impact of material event The rating is based on limited information on the entity's performance since the time it was last rated in July 2024. The lenders, investors and other market participants are thus advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity, despite the downgrade. As part of its process and in accordance with its rating agreement with M/S. Pankaj C. Patel, ICRA has been trying to seek information from the entity to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained noncooperative. In the absence of the requisite information and in line with the aforesaid policy of ICRA, the rating has been continued to the "Issuer Not Cooperating" category. The rating is based on the best available information. Established in November 1979 as a partnership firm by the Patel family, Pankaj C. Patel (PCP) is engaged in civil construction work mainly road construction work for government and semi-government departments in Gujarat. The firm is based out of Nadiad, Gujarat. The firm has a presence limited to Gujarat only, especially in Anand, Nadiad and Kheda regions. PCP is registered as contractor in 'AA' class category with Government of Gujarat. PRABIR FOODSTUFF: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Prabir Foodstuff Factory (PFF) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 13 CRISIL D (Issuer Not Cooperating) Warehouse Financing 15 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with PFF for obtaining information through letter and email dated August 12, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of PFF, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on PFF is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of PFF continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. PFF, set up in 2005 by Mr. Kuljit Singh, mills and sorts basmati and non-basmati rice. It sells its rice under the brands Victoria, 777, KR, and Flying Horse. The firm has a rice milling and sorting facility in Amritsar (Punjab), with a capacity of 12 tonnes per hour. PRACHIN FOUNDATION: CRISIL Keeps D Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Prachin Foundation (Prachin) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 7.09 CRISIL D (Issuer Not Cooperating) Proposed Long Term 2.91 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with Prachin for obtaining information through letter and email dated August 12, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of Prachin, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on Prachin is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of Prachin continues to be 'CRISIL D Issuer Not Cooperating'. Prachin, based in Hyderabad (Telangana), was established by Mr. G Satyanarayana in June 2009. The society has a franchisee agreement with GIFL, Singapore, to manage the Global Indian International School. The school offers education from pre-school to high school level. Its operations are managed by Mr. A Venkateswara Rao. S. K. TEXTILES: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of S. K. Textiles (SKT) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6 CRISIL D (Issuer Not Cooperating) Long Term Loan 1 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SKT for obtaining information through letter and email dated August 12, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of SKT, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SKT is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SKT continues to be 'CRISIL D Issuer Not Cooperating'. For arriving at the rating, CRISIL Ratings has combined the business and financial risk profiles of Innova Fabtex Pvt Ltd (Innova) and SKT. That's because both the entities, together referred to as the S.K. group, are in a similar line of business, have a common management and centralized treasury operations. About the Group SKT was established in 2006 by Mr Sunil Kukreja. The firm manufactures and trades in fabrics, mainly cotton, polyester, and cotton-polyester fabrics. Later on in 2014, he along with his wife, Mrs Lisha Kukreja, set up Innova in 2014; which is also engaged in the same line of business. SHIKHAR INTEGRATED: CRISIL Keeps D Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Shikhar Integrated Cold Chain Private Limited (SICCPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 3.5 CRISIL D (Issuer Not Cooperating) Working Capital 5.0 CRISIL D (Issuer Not Facility Cooperating) CRISIL Ratings has been consistently following up with SICCPL for obtaining information through letter and email dated August 12, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of SICCPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SICCPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SICCPL continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated in 2014 and based in Hathras (Uttar Pradesh), SICCPL cultivates and processes mushrooms and has a cold storage business. The production facility in Hathras has capacity of around 120 tonne per month. Mr Yatendra Pal Singh and his family members are the promoters. SHIVA POLYMERS: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Shiva Polymers Private Limited (SPPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 1 CRISIL D (Issuer Not Cooperating) Cash Credit 5.5 CRISIL D (Issuer Not Cooperating) Letter of Credit 2 CRISIL D (Issuer Not Cooperating) Proposed Long Term 1 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Working Capital 4.5 CRISIL D (Issuer Not Term Loan Cooperating) CRISIL Ratings has been consistently following up with SPPL for obtaining information through letter and email dated August 12, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of SPPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SPPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SPPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. SPPL (formerly, Keshavlal Khanderia Properties Pvt Ltd) commenced operations in November 1997. The company manufactures high-density polyethylene (HDPE) and polypropylene (PP) woven sacks that are mainly used by cement, fertilizer, petrochemicals companies, sugar and food grains. SPPLs manufacturing unit is based in Kona, Howrah district of West Bengal, with an installed production capacity of 3600 tonnes per annum (TPA) for the tape plants, and has 100 looms. SUJATHA FEEDS: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Sujatha Feeds Private Limited (SFPL; Part Of The Gouthami Group) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6.4 CRISIL D (Issuer Not Cooperating) Cash Credit 4.1 CRISIL D (Issuer Not Cooperating) Long Term Loan 17.4 CRISIL D (Issuer Not Cooperating) Proposed Long Term 1.4 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with SFPL for obtaining information through letter and email dated August 12, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of SFPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SFPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SFPL continues to be 'CRISIL D Issuer Not Cooperating'. For arriving at its rating, CRISIL Ratings has combined the business and financial risk profiles of SFPL and Gouthami Hatcheries Pvt Ltd (GHPL). This is because both the companies, together referred to as the Gouthami group, are under the same management team, and have considerable operational and business linkages. About the Group SFPL, set up in 2009, manufactures poultry feed. GHPL, set up in 1999, produces hatching eggs and broiler birds. The companies are promoted by Mr. D Srinath Reddy and his wife, Ms. D Lokeshwari. VEDANTA RESOURCES: Moody's Ups CFR to Caa1 & Unsec. Bonds to Caa2 ----------------------------------------------------------------- Moody's Ratings has upgraded the corporate family rating of Vedanta Resources Limited (VRL) to Caa1 from Caa3. Concurrently, Moody's have upgraded to Caa2 from Ca Moody's rating on the senior unsecured bonds issued by VRL and by VRL's wholly-owned subsidiary Vedanta Resources Finance II Plc and guaranteed by VRL. Moody's have revised the outlook to stable from negative. RATINGS RATIONALE The upgrade to Caa1 is primarily driven by VRL's reduced refinancing risk following its successful issuance of $900 million in 10.875% notes due in September 2029. The proceeds from this issuance have been earmarked for the repurchase of two existing bonds. Specifically, VRL plans to fully redeem its 2027 notes, which have an outstanding value of $470 million, and use any remaining funds to partially repurchase its 2028 notes, currently outstanding at $1.008 billion. Bondholders who tender their bonds before the early deadline of September 16 will receive full repayment. In contrast, those tendering after this date will receive 96% of the bond's value. Moody's do not consider this as a distressed exchange because (1) it does not serve as a means to avoid default, given that both bonds mature in January 2027 or later; and (2) it does not result in an economic loss for investors because the bonds are offered to be repurchased at their full value. Even if some bondholders do not tender their bonds before the early deadline and these are repurchased at below par, the transaction does not qualify as distressed since it is not a default avoidance. VRL's next bond maturity is a $600 million bond that is due in April 2026. A springing covenant as part of its debt restructuring in January 2024 requires VRL to refinance this maturity by December 2025, failing which the amended bonds that were restructured would mature in April 2026. Moody's expect holdco VRL to address the April 2026 bond maturity in a timely manner. Moody's note that the holding company VRL has successfully reduced its gross debt to $5.7 billion as of March 2024 from $9.1 billion at March 2022. Such repayments have been funded via dividends received from its principal operating subsidiary Vedanta Limited (VDL), which VRL owns 56.4% of, in addition to stake sales in VDL. In recent months, VDL has enhanced its liquidity to support shareholder distributions through a $1.0 billion equity issuance via a qualified institutional placement and the sale of around 3% stake in its subsidiary Hindustan Zinc Limited (HZL). VDL's ownership in HZL now stands at around 62% following the stake sale. The CFR reflects as credit strengths VRL's large-scale and diversified low-cost operations; exposure to a wide range of commodities such as zinc, aluminum, iron ore, oil and gas, steel and power; strong position in key markets, enabling it to command a pricing premium; and history of relative margin stability through commodity cycles. However VRL's ratings are constrained because of its weak liquidity and refinancing risk. VRL's senior unsecured bonds are rated at Caa2, one notch lower than the Caa1 CFR, reflecting Moody's view that the bondholders are in a weaker position relative to the operating subsidiaries' creditors. The one-notch differential reflects the legal and structural subordination of the holding company bondholders to the rest of the group. Moody's estimate the operating company's claims are around 75% of total consolidated claims as of March 2024, with the remaining claims distributed across VRL and its intermediate holding companies that have a direct shareholding in VDL. OUTLOOK The rating outlook is stable, reflecting Moody's view that VRL's credit metrics will remain comfortable for its Caa1 rating. LIQUIDITY Holding company VRL's liquidity remains weak, given its debt maturities and interest-servicing needs. The holding company should receive around $300 million annually in the form of management and brand fees from its operating subsidiaries, however any other cash movements from its operating subsidiaries may be in the form of dividends, entailing leakage given the presence of minority shareholders. As of June 2024, its operating subsidiaries held $2 billion in cash, down from $4.5 billion at March 2021. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS A further upgrade of VRL's ratings is unlikely if the company does not substantially improve its liquidity profile and its financial management. Moody's could downgrade VRL's ratings if its default risk increases materially above what is indicated by its current rating. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Mining published in October 2021. COMPANY PROFILE Vedanta Resources Limited (VRL), headquartered in London, is a diversified resources company with interests mainly in India. Its main operations are held by Vedanta Limited (VDL), a 56.4%-owned subsidiary. Through VRL's various operating subsidiaries, the group produces oil and gas, zinc, lead, silver, aluminum, iron ore, steel and power. In September 2023, VDL announced its demerger into six separate listed entities, subject to the relevant approvals. Its shareholders will receive one share in each of the six companies upon the demerger's completion, while VDL and the six companies will have the same shareholding; i.e. VRL will hold a 56.4% stake in VDL and the six new companies. VRL delisted from the London Stock Exchange in October 2018 and is now wholly owned by Volcan Investments Ltd. VRL's founder and chairman Anil Agarwal and his family are Volcan's key shareholders. For the fiscal year ended March 2024, VRL generated revenues of $17.1 billion and an adjusted EBITDA of $4.9 billion. ================= I N D O N E S I A ================= ADARO INDONESIA: Moody's Affirms 'Ba1' CFR, Outlook Remains Stable ------------------------------------------------------------------ Moody's Ratings has affirmed Adaro Indonesia (P.T.)'s Ba1 corporate family rating and the Ba1 rating on its backed senior unsecured notes. The notes are guaranteed by Adaro Indonesia's parent Adaro Energy Indonesia Tbk (P.T.) (Adaro Energy). The outlook remains stable. On September 12, Adaro Energy announced that it plans to sell up to all of its shares in its 99.99% owned subsidiary PT Adaro Andalan Indonesia (AAI) to Adaro Energy's existing shareholders via a public offering. The AAI shares have been valued by an independent appraiser at around $2.45 billion. The proposed sale is subject to shareholder and regulatory approval. AAI owns shares in several thermal coal mining companies including an 88% effective stake in Adaro Indonesia. Once the proposed sale of AAI is complete, Adaro Energy will no longer be the ultimate parent of Adaro Indonesia. "The rating affirmation with a stable outlook reflects Moody's expectation that Adaro Energy's planned sale of AAI will not materially weaken the credit quality of Adaro Indonesia," says Maisam Hasnain, a Moody's Ratings Vice President and Senior Credit Officer. "Adaro Indonesia will remain one of the largest thermal coal producers in the country with solid earnings and strong credit metrics." "While Adaro Indonesia will no longer be part of the larger Adaro Energy group, Moody's expect its operations and governance practice to remain unchanged despite the proposed sale," adds Hasnain, who is also Moody's Ratings lead analyst for Adaro Indonesia. RATINGS RATIONALE Adaro Indonesia's Ba1 CFR is supported by its long-operating track record since the early 1990s, substantial thermal coal reserves, low operating costs, and solid profitability through multiple coal price cycles. Moody's do not expect Adaro Indonesia's operations to be disrupted by the proposed sale. AAI, which will remain its key shareholder, will continue to own the logistics business that currently services Adaro Indonesia. In addition, Adaro Indonesia's contracts with its existing mining service contractors will remain in place. These include PT Saptaindra Sejati (SIS) which has a contract with Adaro Indonesia until 2042. SIS extracted around 65% of Adaro Indonesia's coal production in 2023. The remaining coal is extracted by Bukit Makmur Mandiri Utama P.T. (BUMA, Ba3 stable) and PT Putra Perkasa Abadi, whose contracts with Adaro Indonesia are valid until 2025 and 2027, respectively. Adaro Indonesia will maintain sufficient liquidity over the next 12-18 months. Moody's expect the company to repay all its debt over the next few months with cash. As of June 30, 2024, debt consisted of $750 million notes due in October 2024 and a $75 million bank loan. Adaro Indonesia will therefore be effectively debt-free ahead of the planned sale of AAI. The imminent repayment of the bond and bank loan also eliminates any potential risk arising from the triggering of a Change of Control on Adaro Indonesia's existing debt due to the proposed sale. Moody's also expect Adaro Energy's controlling shareholders to take up the proposed offer from Adaro Energy to acquire a direct stake in AAI, based on the shareholders' proportionate ownership in Adaro Energy, which Moody's estimate was around 56% as of June 30, 2024. As a result, Moody's expect Adaro Indonesia's controlling shareholders to remain largely unchanged. Therefore, Moody's do not anticipate a significant deviation in Adaro Indonesia's governance practices (G-2 IPS) after the proposed sale of AAI. Adaro Indonesia has demonstrated a long track record of maintaining prudent financial policies, including operating with low leverage and making proactive debt repayments even during coal price downturns. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could upgrade the ratings if Adaro Indonesia improves its business profile through commodity diversification while adhering to conservative financial policies, maintaining very good liquidity and demonstrating a prudent approach toward investments and shareholder distributions. Specific indicators Moody's would consider for an upgrade include adjusted debt/EBITDA below 2.0x and adjusted EBIT/interest above 5.0x, both on a sustained basis. On the other hand, Moody's could downgrade the ratings if Adaro Indonesia experiences operational disruptions or industry fundamentals weaken such that its earnings and cash flow decline; or if Adaro Indonesia engages in aggressive shareholder distributions or capital investments, which would indicate a deviation from its stated prudent financial policies. Specific indicators Moody's would consider for a downgrade include adjusted debt/EBITDA above 3.0x or adjusted EBIT/interest below 4.0x. The principal methodology used in these ratings was Mining published in October 2021. Adaro Indonesia (P.T.) is one of the largest single-site coal producers in the southern hemisphere, and one of the world's largest sub-bituminous coal companies. ===================== N E W Z E A L A N D ===================== ANDREAS CAPITAL: Court to Hear Wind-Up Petition on Oct. 4 --------------------------------------------------------- A petition to wind up the operations of Andreas Capital Limited will be heard before the High Court at Auckland on Oct. 4, 2024, at 9:30 a.m. The Commissioner of Inland Revenue filed the petition against the company on July 17, 2024. The Petitioner's solicitor is: Charles David Walmsley Inland Revenue Legal Services 21 Home Straight PO Box 432 Hamilton JLF CONSTRUCTION: Court to Hear Wind-Up Petition on Sept. 23 ------------------------------------------------------------ A petition to wind up the operations of JLF Construction Limited will be heard before the High Court at Tauranga on Sept. 23, 2024, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition against the company on Aug. 6, 2024. The Petitioner's solicitor is: Timothy Saunders Inland Revenue Legal Services 21 Home Straight PO Box 432 Hamilton MECCASPRESSO: Tay St Cafe Closes Doors After Eight Years -------------------------------------------------------- Stuff.co.nz reports that losing independent operators like Meccaspresso isn't good for anyone, Invercargill Licensing Trust chief executive Chris Ramsay said. According to Stuff, Mr. Ramsay was commenting on the news that the Tay St cafe next to Motorcycle Mecca had shut after eight years. "I put it completely down to the being a sign of the times. It's not easy for anyone," he said. In a Facebook post announcing the closure, Meccaspresso owner Brenda Hayes cited the economic downturn, many new hospitality businesses opening nearby and a lack of parking as some of the reasons behind her decision to close the business, Stuff relates. "Remember to support those small owner-operated cafes and restaurants around town," Stuff quotes Ms. Hayers as saying. "These people put everything on the line to provide for their staff & their families, but also to provide a service to their customers." Mr. Ramsay said his heart went out to Ms. Hayes and her team, Stuff reports. "We don't want anyone's business falling over because diversity brings vibrancy," he said. But there was no denying that high interest rates and a cost of living crisis had impacted spending, he said. "The tax relief that came through [in August] hasn't washed through yet," he said. When there weren't events on in Invercargill, ILT was tracking 4 to 5% down in revenue across its businesses, Mr. Ramsay, as cited by Stuff, said. RECREATIONAL GROUP: Creditors' Proofs of Debt Due on Oct. 8 ----------------------------------------------------------- Creditors of Recreational Group Limited are required to file their proofs of debt by Oct. 8, 2024, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 10, 2024. The company's liquidators are: Steven Khov Kieran Jones Khov Jones Limited PO Box 302261 North Harbour SR INDIAN: Grant Bruce Reynolds Appointed as Liquidator ------------------------------------------------------- Grant Bruce Reynolds of Reynolds & Associates on Sept. 10, 2024, was appointed as liquidator of SR Indian Foods Limited. The liquidator may be reached at: Reynolds & Associates Limited PO Box 259059 Botany Auckland 2163 TECHNIX BITUMEN: Owes More Than NZD10MM, Liquidator's Report Shows ------------------------------------------------------------------ Taranaki Daily News reports that the first liquidator's report into pioneering bitumen company Technix has revealed more than NZD10 million is owed to creditors. Technix Bitumen Technologies Ltd, which had been operating since 1961, was placed into voluntary liquidation on September 6 by sole director Lynda Matthews. According to Taranaki Daily News, liquidator John Scutter's first report said the company's shareholder, Technix Holdings Ltd, had been actively seeking purchases for the bitumen plant since late 2022. While some of the plant had been sold prior to the liquidation, the transaction had yet to be settled. "There has been no significant trading for the last six months, which has now caused a decline in cash reserves," Taranaki Daily News quotes Mr. Scutter as saying. "The shareholder is unable to put further funds into the company to allow the company to trade out of its position." The report also highlighted the health of former director John Matthews, which had deteriorated quickly in recent days. "This has impacted on the available means to find suitable purchasers for the plant and related products," Mr. Scutter added. John Matthews, who had been the face of Technix for decades and drove international exports of bitumen technology across the world, ceased being director of the company on September 5, the report notes. Mr. Scutter outlined his search of the Personal Property Securities Register for disclosed interests against the company at the date of the liquidation. The balance owed to creditors with security interests was NZD10,431,075, Taranaki Daily News discloses. Of that sum, 21%, or NZD2.2 million of the balance, was an obligation to an unrelated creditor and was due to a guarantee being provided by the company on behalf of other entities in the wider Technix group. "It is expected that the borrower, rather than the guarantor, will be able to settle this balance in the short term," Mr. Scutter said in the report, Taranaki Daily News relays. "The balance of the secured creditor obligations being NZD8.2 million relates to funding from within the wider group." Scutter had obtained agency from the first ranking secured creditor to undertake the sale of assets and make distributions as required. As well as the sale of the company's fixed assets, which included NZD15,426,382 worth of plant and equipment, Mr. Scutter said steps would now be taken to find a purchaser and tenant for its two sites in New Plymouth. Mr. Scutter would also be conducting a review of the financial records of the company to determine if there were further receivables to be collected. A second liquidator's report is due out in the next six months, Taranaki Daily News adds. THORN PLACE: BDO Auckland Appointed as Receiver and Manager ----------------------------------------------------------- Rees Logan and Andrew McKay of BDO Auckland on Sept. 11, 2024, were appointed as receivers and managers of Thorn Place Trust. The receivers and managers may be reached at: BDO Auckland BDO Centre, Level 4 4 Graham Street Auckland 1140 ================= S I N G A P O R E ================= COMBI PROCESS: Creditors' Meeting Set for Sept. 25 -------------------------------------------------- Combi Process Engineering Pte Ltd will hold a meeting for its creditors on Sept. 25, 2024, at 11:30 a.m. via electronic means. Agenda of the meeting includes: a. to receive a statement of the Company's affairs together with a list of creditors and the estimated amounts of their claims; b. to appoint Liquidators; c. to appoint a Committee of Inspection if deemed necessary; and d. Any other business. Tan Kim Han of Quantuma (Singapore) Pte Limited was appointed provisional liquidator of the company on Sept. 9, 2024. DRAGON GROUP: Creditors' Meeting Set for Oct. 4 ----------------------------------------------- Dragon Group International Limited will hold a meeting for its creditors on Oct. 4, 2024, at 11:30 a.m. via virtual meeting technology. Agenda of the meeting includes: a. to present a full statement of the Company’s affairs, together with a list of creditors and the estimated amounts of their claims; b. to confirm the appointment of Ms. Lim Siew Soo and Mr. Liu Shao Xuan, acting jointly and severally, for the purpose of the winding up of the Company and that their remuneration be based on the normal scale rates and be paid out of the Company’s assets; c. to appoint a Committee of Inspection if deemed necessary; and d. Any other business. Ms. Lim Siew Soo and Mr. Liu Shao Xuan were appointed as provisional liquidators of the company on Sept. 9, 2024. HOSPITALITY SUITES: Court to Hear Wind-Up Petition on Oct. 4 ------------------------------------------------------------ A petition to wind up the operations of The Hospitality Suites Pte Ltd will be heard before the High Court of Singapore on Oct. 4, 2024, at 10:00 a.m. Maybank Singapore Limited filed the petition against the company on Sept. 6, 2024. The Petitioner's solicitors are: Adsan Law LLC 300 Beach Road #26-00 The Concourse Singapore 199555 MTN CONSULTANTS: Creditors' Proofs of Debt Due on Oct. 7 -------------------------------------------------------- Creditors of MTN Consultants and Building Management Pte. Ltd. are required to file their proofs of debt by Oct. 7, 2024, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 6, 2024. The company's liquidators are: Mr. Don M Ho Mr. David Ho c/o DHA+ pac 63 Market Street #05-01A Bank of Singapore Centre Singapore 048942 PORTERS RESTAURANT: Commences Wind-Up Proceedings ------------------------------------------------- Members of Porters Restaurant Bar Private Limited on Sept. 6, 2024, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Ms. Chan Li Shan c/o Agile 8 Solutions 133 Cecil Street #14-01 Keck Seng Tower Singapore 069535 =============== T H A I L A N D =============== MUANGTHAI CAPITAL: Fitch Assigns 'BB' LongTerm IDR, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has assigned Thailand-based Muangthai Capital Public Company Limited (MTC) a Long-Term Issuer Default Rating (IDR) of 'BB' and a National Long-Term Rating of 'A-(tha)'. The Outlook is Stable. Fitch has also assigned MTC's proposed US dollar-denominated senior unsecured bonds an expected long-term rating of 'BB(EXP)'. The proceeds will be used for eligible projects under MTC's social bond framework. The final rating is subject to the receipt of final documentation conforming to information already received. Key Rating Drivers Standalone Profile Underpins Ratings: MTC's ratings reflect its solid franchise and extensive experience in vehicle title lending in Thailand, manageable asset quality, acceptable leverage and satisfactory risk-adjusted earnings. Offsetting this is the company's higher-risk profile due to MTC's focus on lower-income individuals and high-growth appetite, its relatively low liquidity buffer and somewhat concentrated funding profile, albeit improving. The National Ratings, while driven by the company's IDR, also consider MTC's credit profile relative to other Fitch-rated entities on the national scale. Environment Constrains Recovery: Asset quality and profitability of major Thai consumer finance companies have declined in recent years due to sluggish economic recovery, regulatory lending rate caps and increased competition in certain product segments. Fitch expects domestic economic activity to pick up slightly (Fitch forecasts GDP growth of 2.6% in 2024 and 3.5% in 2025), but a full recovery for most non-bank lenders appears unlikely in the near term, particularly given the lingering pressure from the country's high household debt (91% of GDP at end March-2024). Leading Vehicle Title Financier: MTC is the largest lender within the niche vehicle title lending segment in Thailand by gross loans and branches. This high-yielding segment is largely dominated by MTC and two other non-bank lenders, despite increased competition in recent years. Vehicle title loans and other secured lending, such as land title loans and hire purchase, formed 85% of MTC's loan book at FYE23. However, MTC's business profile is constrained by revenue diversity and volatility risk from its lower-income borrower clients. Asset-Based Underwriting: MTC primarily relies on setting adequate collateral coverage over the lending amount to mitigate credit risks associated with its higher-risk clients. This exposes MTC to vehicle price volatility, but its focus on used vehicles helps reduce the cliff depreciation risk for new vehicles. MTC also employs a tested model to track transaction volumes and prices through eight in-house auction centres, enabling prompt responses to drastic price swings when necessary. Manageable Asset-Quality Deterioration: MTC's impaired-loan ratio has risen significantly in recent years due to persistent macroeconomic challenges, although it eased to 2.9% by end-1H24, from 3.1% at FYE23 (FYE20: 1.1%). Still, it is substantially above the pre-Covid-19 range of 1.0%-1.2% (FY17-FY20). Fitch believes that MTC's delinquency rate will stay high over the next two years, given households' weak debt servicing ability. Its rating also takes into consideration MTC's strong loan growth appetite (CAGR of 26% over FY20-FY23), which could have an inflating effect on asset-quality metrics. Profitability Remains Decent: The company's pretax return on average assets (ROAA) has decreased in recent years, reaching 4.6% in 1H24 from 5.6% in FY22 and 9.3% in FY20. The decline was due to rising credit costs and expenses, and a narrower net interest margin (NIM) caused by lower lending rates and higher funding costs. Still, the current pretax ROAA remains supportive of the current rating level, and Fitch believes that the downside risk over the next two years should be manageable as the strain on credit costs and NIM eases on stabilising asset-quality and competitive pressures. Acceptable Leverage: MTC's leverage as indicated by the debt/tangible equity ratio increased to 3.6x by end-1H24 (FYE22: 3.3x). This was driven by lower profit accumulation and somewhat high loan growth. Its leverage ratio remains low relative to the 'bb' benchmark range of 4x-7x, although this is offset by MTC's higher-risk clients, limited revenue diversity and greater susceptibility to unexpected events. Improving Funding but Thin Liquidity Buffer: MTC's funding profile is less diversified than that of higher-rated peers, and is skewed towards confidence-sensitive local-currency bond funding, which accounted for 67% of total funding at end-1H24. Its liquidity buffer - measured by cash plus undrawn committed long-term facilities/short-term funding - of 0.04x at end-1H24 was also considerably lower than Fitch-rated regional peers. However, this is mitigated by MTC's expanding lender pool, access to debt markets, a well-matched asset-liability profile, and refinancing management. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade IDR Signs of material weakening in MTC's funding access or in its liquidity profile could lead to a negative action. Alternatively, heightened asset-quality risks such that its impaired-loan ratio approaches 5% along with debt/tangible equity ratio surging materially beyond 4x without a clear path to improvement due to sustained credit losses would also pressure the rating. A negative rating action could also result from a material deterioration in the domestic operating environment as indicated by a downgrade in the company's sector risk operating environment score. For example, this may be due to sustained economic under-performance or substantial weakening in household sector finances. National Ratings Negative rating actions on MTC's Long-Term IDR may lead to similar action on the company's National Long-Term Rating. However, Fitch would also consider the relative credit strength of peers on the Thai National Rating scale when assessing MTC's National Ratings. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade IDR and National Ratings A positive rating action on the National Ratings could be triggered if MTC takes on a more measured growth approach while maintaining a steady asset quality through the cycle. This is provided that MTC adopts a more conservative asset-liability management as reflected by a stronger liquidity buffer against short-term funding at no less than 0.25x. An upgrade on the IDR is less likely in the medium term, unless there is a material and sustained improvement in multiple factor scores. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS MTC's expected senior debt rating is equalised with the entity's Long-Term IDR of 'BB', as the proposed bonds will represent the company's unsubordinated and unsecured obligations. The proposed bonds will carry a fixed-rate coupon payable semi-annually with an amortisation structure over four years. They are also subject to a risk-adjusted capital ratio of at least 15%, and a net stage 3 asset ratio of no more than 7% at all times. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES The expected senior debt rating will move in tandem with the company's Long-Term IDR. ADJUSTMENTS The sector risk operating environment score has been assigned above the implied score due to the following adjustment reason: sovereign rating (positive). The business profile score has been assigned below the implied score due to the following adjustment reason: business model (negative). The asset quality score has been assigned below the implied score due to the following adjustment reason: growth (negative). The earnings and profitability score has been assigned below the implied score due to the following adjustment reason: revenue diversification (negative). The capitalisation and leverage score has been assigned below the implied score due to the following adjustment reasons: risk profile and business model (negative). Date of Relevant Committee 02 September 2024 ESG Considerations MTC has an ESG Relevance Score of '3' for Customer Welfare, compared with the standard score of '2' for the finance company sector. This reflects its retail-focused operations, which expose it to risks around fair lending practices, pricing transparency, repossession, foreclosure and collection practices, whereby aggressive practices in these areas may subject the company to legal or regulatory and reputational risk that may damage its credit profile. The score of '3' for this factor reflects its view that such risks are adequately managed and have a low impact on the company's credit profile. 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 ----------- ------ Muangthai Capital Public Company Limited LT IDR BB New Rating Natl LT A-(tha) New Rating senior unsecured LT BB(EXP) Expected Rating ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2024. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. *** End of Transmission ***