/raid1/www/Hosts/bankrupt/TCRAP_Public/240926.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, September 26, 2024, Vol. 27, No. 194
Headlines
A U S T R A L I A
AFG 2022-1NC TRUST: S&P Affirms B+ (sf) Rating on Class F Notes
APICIUS GROUP: Second Creditors' Meeting Set for Sept. 30
BEN AND KALINA: First Creditors' Meeting Set for Oct. 1
CORONADO GLOBAL: Fitch Assigns 'B+' LongTerm IDR, Outlook Stable
DIXON ADVISORY: Parent Company to Voluntarily Delist From ASX
KLO CIVIL: First Creditors' Meeting Set for Oct. 2
LINCHPIN CAPITAL: Full Federal Court Rejects Ex-Director Appeal
LUXHAUS GROUP: First Creditors' Meeting Set for Sept. 30
ML AND LT PHILLIPS: First Creditors' Meeting Set for Oct. 2
OZ LABOUR: First Creditors' Meeting Set for Oct. 1
RESIMAC TRIOMPHE 2024-2: S&P Assigns Prelim 'B' Rating to F Notes
THINK TANK 2021-2: S&P Raises Class F Notes Rating to BB+ (sf)
C H I N A
COUNTRY GARDEN: To Sell Stake in Zhuhai Wanda for US$446 Million
HO WAN KWOK: Alter Ego Decision Upheld
SHINECO INC: Completes $8.2MM Sale of Common Shares to 22 Investors
YONGHUI SUPERSTORES: Miniso to Acquire 29.4% Stake in Company
I N D I A
A. B. PAL: CARE Lowers Rating on INR43.30cr LT Loan to D
ALISHA STEELS: Voluntary Liquidation Process Case Summary
BILTECH BUILDING: CARE Keeps D Debt Rating in Not Cooperating
BIOCON BIOLOGICS: Fitch Assigns 'BB-' IDR, Outlook Stable
BYJU'S: Byju's Defaulted on US$1.5BB Loan, Del. Sup. Ct. Rules
CABLE CORPORATION: CARE Keeps D Debt Ratings in Not Cooperating
CAMERICH PAPERS: CARE Keeps D Debt Ratings in Not Cooperating
DUGGAR FIBER: CARE Keeps D Debt Rating in Not Cooperating Category
ENCHIKANDATHIL JEWELLERY: CARE Keeps D Rating in Not Cooperating
ESSAR OIL: Insolvency Resolution Process Case Summary
GANESH COLD: CARE Keeps D Debt Rating in Not Cooperating Category
GOYAL ENTERPRISES: CARE Keeps D Debt Rating in Not Cooperating
GUARDIAN LIFECARE: Insolvency Resolution Process Case Summary
HANSRAJ MEMORIAL: CARE Keeps D Debt Ratings in Not Cooperating
IMPERIAL FASTNERS: CARE Keeps D Debt Ratings in Not Cooperating
INDIA: Rescues for Large Defaulters May Strike an Informal Note
JHAMB ENTERPRISES: Insolvency Resolution Process Case Summary
KAMA METALS: CARE Keeps D Debt Rating in Not Cooperating Category
KAPCO ELECTRIC: CARE Keeps C Debt Ratings in Not Cooperating
KARNATAKA POULTRY: CARE Keeps C Debt Rating in Not Cooperating
MISHAL CONSTRUCTION: CARE Keeps D Debt Ratings in Not Cooperating
MITHRA COACHES: CARE Keeps D Debt Rating in Not Cooperating
NARIAN PERIWAL: CARE Lowers Rating on INR11.00cr LT Loan to D
NATH MOTORS: CRISIL Keeps D Debt Ratings in Not Cooperating
NATHJI COTTON: CARE Keeps D Debt Rating in Not Cooperating
NEELAM DYEING: CARE Keeps D Debt Rating in Not Cooperating
NHS INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating
NOOR IMPEX: CARE Keeps D Debt Ratings in Not Cooperating Category
PRAKASH CORRUGATED: CARE Keeps D Debt Ratings in Not Cooperating
RAJ-SNEH AUTO: CARE Keeps D Debt Ratings in Not Cooperating
RANA STEELS: CARE Keeps D Debt Ratings in Not Cooperating Category
REETHU TOBACCO: CARE Keeps D Debt Rating in Not Cooperating
ROOPCHAND HOTELS: CARE Keeps D Debt Rating in Not Cooperating
SAMBANDH FINSERVE: Insolvency Resolution Process Case Summary
SHARDA RETAILS: CARE Keeps B Debt Rating in Not Cooperating
SHRIRAM FINANCE: Fitch Assigns BB(EXP) Rating to USD Sr. Sec. Bonds
SHRIRAM FINANCE: S&P Assigns 'BB' Rating to USD Sr. Secured Notes
SPICEJET: Faces Another Insolvency Plea From Operational Creditor
SURYA COTTON: CARE Keeps D Debt Rating in Not Cooperating Category
TRANSSTADIA TECHNOLOGIES: CARE Keeps C Rating in Not Cooperating
N E W Z E A L A N D
AMPHIBIAN LIMITED: Court to Hear Wind-Up Petition on Oct. 1
G4 NATCONTRACTING: Court to Hear Wind-Up Petition on Oct. 1
KORU HOMES: Creditors' Proofs of Debt Due on Oct. 15
LAS COLOR: Creditors' Proofs of Debt Due on Oct. 16
ORIGIN CORPORATION: Court to Hear Wind-Up Petition on Oct. 3
S I N G A P O R E
GOLD N HOUSE: Court Enters Wind-Up Order
J FOODGROUP: Court Enters Wind-Up Order
PRADEO PTE: Court Enters Wind-Up Order
SRI LANKA MARINE: Creditors' Proofs of Debt Due on Oct. 11
VIEWERS CHOICE: Goh Tiong Hong Named as Provisional Liquidator
S R I L A N K A
SRI LANKA: IMF to Work With New President on US$3 Billion Loan
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A U S T R A L I A
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AFG 2022-1NC TRUST: S&P Affirms B+ (sf) Rating on Class F Notes
---------------------------------------------------------------
S&P Global Ratings raised its ratings on 45 classes of Australian
nonconforming and prime residential mortgage-backed securities
(RMBS) transactions sponsored by five Australian nonbank
originators. At the same time, S&P affirmed 79 ratings and removed
84 ratings from under criteria observation (UCO; see list).
The rating actions follow its review of these nonconforming 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.
A key driver for the rating upgrades is the reduction in the
minimum credit support commensurate with the respective rating
levels. This is primarily driven by the application of the updated
methodology and assumptions.
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
La Trobe Financial Capital Markets Trust 2020-S1
Class C: to AAA (sf) from AA+ (sf)
Class D: to AA (sf) from A (sf)
Class E: to A (sf) from BBB- (sf)
La Trobe Financial Capital Markets Trust 2023-1
Class C: to AA- (sf) from A (sf)
Class D: to BBB+ (sf) from BBB (sf)
Class E: to BB+ (sf) from BB (sf)
Class F: to BB- (sf) from B+ (sf)
La Trobe Financial Capital Markets Trust 2023-2
Class C: to AA- (sf) from A (sf)
Class D: to BBB+ (sf) from BBB (sf)
Class E: to BB+ (sf) from BB (sf)
Class F: to BB- (sf) from B+ (sf)
La Trobe Financial Capital Markets Trust 2023-3
Class C: to A+ (sf) from A (sf)
Class D: to BBB+ (sf) from BBB (sf)
Class E: to BB+ (sf) from BB (sf)
Class F: to B+ (sf) from B (sf)
La Trobe Financial Capital Markets Trust 2024-1
Class C: to A+ (sf) from A (sf)
Class D: to BBB+ (sf) from BBB (sf)
Class E: to BB+ (sf) from BB (sf)
Class F: to B+ (sf) from B (sf)
Sapphire XXV Series 2021-1 Trust
Class B: to AAA (sf) from AA+ (sf)
Class C: to AA+ (sf) from A+ (sf)
Class D: to A+ (sf) from BBB+ (sf)
Class E: to A- (sf) from BBB- (sf)
Class F: to BBB- (sf) from BB- (sf)
Sapphire XXVII Series 2023-1 Trust
Class C: to A+ (sf) from A (sf)
Class D: to BBB+ (sf) from BBB (sf)
Class E: to BBB- (sf) from BB (sf)
Class F: to BB (sf) from B+ (sf)
Think Tank Residential Series 2021-1 Trust
Class C: to AAA (sf) from AA (sf)
Class D: to AA (sf) from A (sf)
Class E: to A- (sf) from BBB- (sf)
Class F: to BBB- (sf) from B+ (sf)
Think Tank Residential Series 2022-1 Trust
Class D: to A (sf) from A- (sf)
Class E: to BBB (sf) from BB+ (sf)
Class F: to BB (sf) from B+ (sf)
Think Tank Residential Series 2022-2 Trust
Class B: to AAA (sf) from AA (sf)
Class C: to AA (sf) from A (sf)
Class D: to A (sf) from BBB (sf)
Class E: to BBB (sf) from BB (sf)
Class F: to BB (sf) from B (sf)
Think Tank Residential Series 2023-1 Trust
Class B: to AA+ (sf) from AA (sf)
Class C: to AA- (sf) from A (sf)
Class D: to A- (sf) from BBB (sf)
Class E: to BBB- (sf) from BB (sf)
Class F: to B+ (sf) from B (sf)
Ratings Affirmed And Removed From UCO
La Trobe Financial Capital Markets Trust 2022-2
Class B: AA (sf)
Class C: A (sf)
Class D: BBB+ (sf)
Class E: BB+ (sf)
Class F: BB- (sf)
La Trobe Financial Capital Markets Trust 2023-1
Class B: AA (sf)
La Trobe Financial Capital Markets Trust 2023-2
Class B: AA (sf)
La Trobe Financial Capital Markets Trust 2023-3
Class B: AA (sf)
La Trobe Financial Capital Markets Trust 2024-1
Class A1S: AAA (sf)
Class A1L: AAA (sf)
Class A2: AAA (sf)
Class B: AA (sf)
La Trobe Financial Capital Markets Trust 2024-2
Class A1S: AAA (sf)
Class A1L: AAA (sf)
Class A2: AAA (sf)
Sapphire XXVI Series 2022-1 Trust
Class B: AA (sf)
Class C: AA- (sf)
Class D: BBB (sf)
Class E: BB+ (sf)
Class F: B+ (sf)
Sapphire XXVII Series 2023-1 Trust
Class B: AA (sf)
Think Tank Residential Series 2022-1 Trust
Class C: AA (sf)
Think Tank Residential Series 2023-3 Trust
Class B: AA (sf)
Class C: A (sf)
Class D: BBB (sf)
Class E: BB (sf)
Class F: B (sf)
Think Tank Residential Series 2024-1 Trust
Class A1-S: AAA (sf)
Class A1-L: AAA (sf)
Class A2: AAA (sf)
Class B: AA (sf)
Class C: A (sf)
Class D: BBB (sf)
Class E: BB (sf)
Class F: B (sf)
AFG 2022-1NC Trust in respect of Series 2022-1NC
Class C: AA (sf)
Class D: BBB+ (sf)
Class E: BB (sf)
Class F: B+ (sf)
Ratings Affirmed
La Trobe Financial Capital Markets Trust 2020-S1
Class A1L: AAA (sf)
Class A2: AAA (sf)
Class B: AAA (sf)
La Trobe Financial Capital Markets Trust 2021-1
Class A1: AAA (sf)
Class A2: AAA (sf)
La Trobe Financial Capital Markets Trust 2021-2
Class A1: AAA (sf)
Class A2: AAA (sf)
La Trobe Financial Capital Markets Trust 2022-1
Class A1L: AAA (sf)
Class A2: AAA (sf)
La Trobe Financial Capital Markets Trust 2022-2
Class A1L: AAA (sf)
Class A2: AAA (sf)
La Trobe Financial Capital Markets Trust 2023-1
Class A1L: AAA (sf)
Class A2: AAA (sf)
La Trobe Financial Capital Markets Trust 2023-2
Class A1L: AAA (sf)
Class A2: AAA (sf)
La Trobe Financial Capital Markets Trust 2023-3
Class A-S: AAA (sf)
Class A-L: AAA (sf)
Sapphire XXV Series 2021-1 Trust
Class A1L: AAA (sf)
Class A2: AAA (sf)
Sapphire XXVI Series 2022-1 Trust
Class A1L: AAA (sf)
Class A2: AAA (sf)
Sapphire XXVII Series 2023-1 Trust
Class A1L: AAA (sf)
Class A2: AAA (sf)
Think Tank Residential Series 2021-1 Trust
Class A1: AAA (sf)
Class A2: AAA (sf)
Class B: AAA (sf)
Think Tank Residential Series 2022-1 Trust
Class A1-L: AAA (sf)
Class A2: AAA (sf)
Class B: AAA (sf)
Think Tank Residential Series 2022-2 Trust
Class A1-L: AAA (sf)
Class A2: AAA (sf)
Think Tank Residential Series 2023-1 Trust
Class A1: AAA (sf)
Class A2: AAA (sf)
Think Tank Residential Series 2023-3 Trust
Class A1: AAA (sf)
Class A2: AAA (sf)
AFG 2022-1NC Trust in respect of Series 2022-1NC
Class A1-L: AAA (sf)
Class A2: AAA (sf)
Class B: AAA (sf)
RedZed Trust Series 2022-2
Class A1-L: AAA (sf)
Class A-2: AAA (sf)
APICIUS GROUP: Second Creditors' Meeting Set for Sept. 30
---------------------------------------------------------
A second meeting of creditors in the proceedings of Apicius Group
Pty Ltd has been set for Sept. 30, 2024 at 11:00 a.m. via virtual
meeting.
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. 27, 2024 at 5:00 p.m.
Peter John Moore of Jirsch Sutherland was appointed as
administrator of the company on Aug. 26, 2024.
BEN AND KALINA: First Creditors' Meeting Set for Oct. 1
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Ben and
Kalina Queenies Pty Limited and Nick Queenies Pty Limited will be
held on Oct. 1, 2024 at 10:30 a.m. at the offices of Worrells at
Level 2, AMP Building, 1 Hobart Place in Canberra and via virtual
meeting technology.
Stephen John Hundy of Worrells was appointed as administrator of
the company on Sept. 19, 2024.
CORONADO GLOBAL: Fitch Assigns 'B+' LongTerm IDR, Outlook Stable
----------------------------------------------------------------
Fitch Ratings has assigned Coronado Global Resources Inc. (CRN) a
first-time Long-Term Foreign-Currency Issuer Default Rating (IDR)
of 'B+', with a Stable Outlook.
Fitch has also assigned the proposed US dollar senior secured notes
to be issued by CRN's wholly-owned subsidiary Coronado Finance Pty
Ltd a 'BB-' rating, with a Recovery Rating of 'RR3'. The notes will
be guaranteed by CRN and all its operating subsidiaries, and become
their senior secured obligations. Proceeds from the issue will be
used to redeem USD242 million of outstanding senior secured notes
and for general corporate purposes.
CRN is one of the largest metallurgical (met) coal-focused
producers globally, with assets in Australia and the US, but the
IDR is constrained by its weak cost position. Its EBITDA is highly
sensitive to coal prices and its financial profile is at risk from
industry downturns. However, Fitch expects profitability to improve
gradually, driven by capacity expansions in 2025-2026 and changes
to its contractual terms with Queensland's Stanwell Corporation
Ltd. from 2027.
Key Rating Drivers
Weak Cost Position: CRN is positioned in the fourth quartile of
CRU's business cost curve for met coal, based on a
production-weighted average of individual asset costs, indicating a
weak cost position. This makes CRN's EBITDA highly sensitive to met
coal prices and increases its cash-flow volatility. Its EBITDA
soared to USD1.2 billion in 2022 from being marginally positive in
2020, with a jump of around USD140/tonne (t) in average annual met
coal price.
Capacity Expansion to Cut Costs: CRN is increasing production
capacity at Curragh mine in Australia and Buchanan in the US, which
together contributed over 85% of the group's saleable coal output
in 2023. Fitch expects these projects to drive an almost 25% jump
in sales volume to 20 million tonnes (mt) by 2026, from 16mt in
2024, and cut unit mining cost by a quarter. Its expectation of
cost improvement factors in benefits from operating leverage and
the use of new mining technology and equipment.
Operational Issues Likely to Reduce: CRN is also likely to benefit
from improved operating reliability following the capacity
expansion with new equipment. The Curragh and Buchanan mines have
been operating for more than 40 years, and suffer from unplanned
maintenance requirements and stoppages. CRN currently relies on
open-cut mining in Australia, and heavy rainfall adversely affects
operations. The expansion at Curragh is underground, which should
reduce the impact of poor weather on CRN's consolidated
performance.
Stanwell Uplift from 2027: Profitability at Curragh, CRN's largest
asset by volume, is affected by factors such as the sale of thermal
coal to Stanwell at below market rate, sharing of revenue from coal
exports with Stanwell through rebates, and multi-year take-or-pay
contracts for coal transportation.
CRN expects its current agreement with Stanwell to expire by early
2027 upon delivery of contracted volumes, following which the group
would not have to pay rebates on coal exports. In addition, CRN
would be able to sell around one million tonnes per annum (mtpa) of
low-grade met coal in the export market, instead of selling it as
thermal coal to Stanwell at below market rate. Fitch estimates that
these changes will increase CRN's annual EBITDA by almost USD200
million, based on Fitch's met coal benchmark price assumption of
USD180/t for 2027.
Metrics to Improve from 2026: Fitch estimates CRN's EBITDA net
leverage will increase to above 3.5x by 2025, from a net cash
position in 2023, due to weak EBITDA and capex on the capacity
expansion. Thereafter, Fitch estimates leverage to decline to
around 2.0x by 2027, on increasing EBITDA. Fitch forecasts
Fitch-adjusted EBITDA will drop to around USD90 million in 2024 and
2025 (2023: USD340 million), before recovering to around USD270
million by 2027. Fitch assumes met coal prices will decline to
USD180/t in 2026 and 2027, from USD295/t in 2023.
CRN's EBITDA should grow from 2026 on higher sales volumes and an
uplift from the expiry of the Stanwell contract. Fitch forecasts
EBITDA interest coverage to weaken to around 2.0x by 2025 (2023:
11.9x), before improving to over 4.0x by 2027. Fitch estimates
CRN's free cash flow (FCF) profile to be negative over 2024-2027,
following FCF generation during 2021-2023, due to weaker EBITDA and
higher capex.
Rated on Standalone Basis: Fitch rates CRN based on its standalone
credit profile, despite Coronado Group LLC's 50.4% stake. Fitch
does not have any information on Coronado Group, which is held by
Energy & Minerals Group (EMG), a private equity firm. Fitch sees
limited risk to CRN's credit profile from large dividends or other
forms of exceptional returns to Coronado Group and EMG. CRN is
listed on the Australian Securities Exchange (ASX) and has a
majority of independent directors on its board. Fitch thinks the
share price would fall, hurting EMG's profits, if EMG exerts undue
influence on CRN's decisions.
Derivation Summary
CRN's ratings can be compared with rated met coal producers Golden
Energy and Resources Pte. Ltd. (GEAR, B+/Stable) and Mongolian
Mining Corporation (MMC, B/Stable).
GEAR owns 59% of Australia-based met coal mining company Stanmore
Resources and 70% stake in the Illawarra met coal asset. GEAR has a
better cost position than CRN, within the third quartile of the
global met coal cost curve. Fitch also expects GEAR's average
proportionately consolidated EBITDA over 2024-2027 to be more than
twice that of CRN. These business profile advantages over CRN are
offset by risks associated with GEAR's private shareholding, large
debt at the standalone level that is structurally subordinated to
the debt at the subsidiary level, and its acquisitive nature.
MMC is the largest producer and exporter of high-quality washed
hard coking coal in Mongolia. Its main end-customer base is in
northern China, and the heavy reliance on Chinese customers makes
it vulnerable to economic conditions and changes to regulations in
China. MMC's mining business is subject to the volatile regulatory
environment in Mongolia, where its mining assets are located. Fitch
believes these factors result in a weaker business profile and
rating compared with CRN.
Key Assumptions
Fitch's Key Assumptions Within Its Rating Case for CRN:
- Total coal sales volume, including thermal coal, of 16mt in 2024,
19mt in 2025 and 20mt in 2026 (2023: 16mt);
- Average realised price for coal sales of around USD150/t in 2024,
USD125/t in 2025 and USD115/t in 2026 (2023: USD178/t);
- Unit cost of coal revenues of around USD105/t in 2024, USD85/t in
2025 and USD75/t in 2026 (2023: USD110/t);
- Average annual capex of around USD220 million over 2024-2026
(2023: USD237 million);
- Flat annual dividend of USD17 million during 2024-2026.
Recovery Analysis
- The recovery analysis assumes that CRN would be liquidated in
bankruptcy, based on its estimate of higher recoveries for
debtholders in case of liquidation compared with CRN's
going-concern enterprise value.
- Fitch has assumed a 10% administrative claim.
- To calculate the liquidation value, Fitch uses an 80% advance
rate against the value of trade receivables as of end-June 2024 and
a 50% advance rate against the value of inventory. This is in line
with typical advance rates Fitch uses for receivables and
inventories. Fitch uses an 35% advance rate against the value of
property, plant and equipment, which is lower than Fitch's typical
assumption. The higher discount is based on its assessment that the
liquidation value could be hampered by the old age of the bulk of
CRN's plant and equipment.
- Fitch assumes that the USD150 million asset-based loan (ABL)
facility will be fully drawn and practically rank ahead of the
proposed US dollar senior secured notes in the event of
liquidation. The ABL facility has first lien status over trade
receivables and inventories, among other assets, which are more
easily liquidated than other assets. This effectively renders the
US dollar notes second lien, in its view.
The assumptions result in an 'RR3' Recovery Rating for the US
dollar notes and a one-notch uplift from the IDR under Fitch's
Corporate Recovery Ratings and Instrument Ratings Criteria.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
- Fitch's expectations for EBITDA net leverage sustaining above
3.0x
- EBITDA interest coverage forecast to sustain below 3.0x
- Large special dividends or other forms of return to shareholders,
leading to a weaker financial profile.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
- An improvement in CRN's output-weighted cost position to
comfortably within the third quartile (based on CRU data) leading
to higher sustained profitability, while maintaining net leverage
below 3.0x.
Liquidity and Debt Structure
Manageable Liquidity: CRN had USD269 million of debt as of 30 June
2024, roughly equal to cash and cash equivalents of around USD265
million. The bulk of CRN's debt comprised USD242 million of senior
secured notes due in 2026, which the company plans to refinance
through the proposed notes.
Fitch expects CRN to incur significantly negative FCF during
2024-2026, due to capex for capacity expansion, and its forecast
for weaker met coal prices and EBITDA. Fitch thinks CRN has the
ability to assume additional debt to fund its capex and working
capital, and maintain an adequate cash balance. CRN has the option
to cut capex to support its liquidity should additional debt
funding become challenging.
Issuer Profile
CRN is an ASX-listed miner of met coal and some thermal coal. It
has assets in Australia and the US, and produced 16mt of saleable
coal in 2023.
Date of Relevant Committee
17 September 2024
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
Fitch rates CRN based on its standalone credit profile even though
Coronado Group holds a majority 50.4% stake. Coronado Group is a
private company on which information is unavailable and is
ultimately held by EMG, a specialised natural resource-focused
private equity firm. Fitch believes risk to CRN's credit profile
from large dividends or other forms of exceptional returns and
support to Coronado Group and EMG is limited.
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
----------- ------ --------
Coronado Global
Resources Inc. LT IDR B+ New Rating
Coronado Finance
Pty Ltd
senior secured LT BB- New Rating RR3
DIXON ADVISORY: Parent Company to Voluntarily Delist From ASX
-------------------------------------------------------------
selfmanagedsuper reports that Dixon Advisory's parent company, E&P
Financial Group, will voluntarily delist, claiming its share price
does not reflect its actual value, with the Financial Advice
Association Australia (FAAA) noting the move would not stop the
company from having to give evidence at the public inquiry into
Dixon Advisory's collapse.
According to the report, E&P announced the plans to delist on or
around December 12 this year as part of a statement released to the
Australian Securities Exchange (ASX), with the move dependent on
the outcome of an extraordinary general meeting of shareholders due
to be held on October 24.
In the statement, E&P's board of directors gave a number of reasons
for the decision, including that its trading price does not reflect
the company's underlying value.
"The board considers that the trading price of the company's shares
in recent years implies a valuation that has been (and remains)
consistently and materially below the board and management's view
of the company's fundamental value and significantly below the
company's peers," E&P said.
The statement added limited trading volumes and liquidity in E&P
shares was an additional reason for seeking the move into private
ownership, selfmanagedsuper relays.
"Despite the company's listing on ASX in 2018, the company's
shareholder base remains concentrated and trading in shares has
been relatively illiquid, limiting the company's ability to
meaningfully broaden its institutional ownership. It has also been
relatively difficult for existing investors to access liquidity
through the sale of shares, without the risk of a disproportionate
impact on the share price," it said.
While making no specific mention of Dixon Advisory's collapse as a
driver for delisting, E&P noted it was a central issue in the
recently announced Parliamentary Joint Committee inquiry into the
establishment of the Compensation Scheme of Last Resort (CSLR) and
claimed it has no further information as to its involvement in the
probe, selfmanagedsuper relates.
"The motion [in the Senate to call an inquiry] is relevant to E&P
as it references E&P subsidiary Dixon Advisory & Superannuation
Services Pty Limited (subject to deed of company arrangement) as an
example," it said, notes the report. "The company has no further
detail on the proposed inquiry and is unaware of the extent to
which it may or may not be involved in the inquiry."
selfmanagedsuper adds that FAAA policy, advocacy and standards
general manager Phil Anderson said the ownership of E&P would not
reduce its scrutiny at the inquiry as the terms of reference went
beyond the CSLR and considered the impact on it from Dixon
Advisory's collapse.
"I don't think they will avoid scrutiny. There may be less scrutiny
going forward if they're not required to report to the ASX, but in
terms of this parliamentary inquiry, it doesn't matter if they're
listed or not," selfmanagedsuper quotes Mr. Anderson as saying
during a FAAA webinar with members. "The Senate economics committee
will, as a result of these terms of reference, be having a very
close look at the action of Dixon Advisory and therefore their
parent company, E&P Financial Group."
About Dixon Advisory
Both Dixon Advisory and E&P Operations were wholly owned
subsidiaries of E&P Financial Group Limited.
Dixon Advisory previously held an Australian Financial Services
licence and operated a financial advice business focused on
providing financial advice, investment advice, portfolio management
and superannuation administration services to retail clients.
As reported in the Troubled Company Reporter-Asia Pacific in
January 2022, E&P Financial Group's wholly owned subsidiary Dixon
Advisory and Superannuation Services (DASS) has appointed PwC
Partners Stephen Longley and Craig Crosbie as voluntary
administrators. According to themarketherald.com.au, E&P said the
appointment was made after the DASS directors determined mounting
actual and potential liabilities were likely to result in DASS
becoming insolvent at some future time.
On Dec. 16, 2022, a deed of company arrangement (DOCA) was passed
by Dixon Advisory's creditors, which among other things required
E&P Operations to pay an amount of AUD17,662,489 to Dixon Advisory
less a settlement adjustment for expenses incurred by E&P
Operations during the administration period.
KLO CIVIL: First Creditors' Meeting Set for Oct. 2
--------------------------------------------------
A first meeting of the creditors in the proceedings of KLO Civil
Pty Ltd will be held on Oct. 2, 2024 at 11:00 a.m. via
teleconference only.
Mohammad Najjar of Vanguard Insolvency Australia was appointed as
administrator of the company on Sept. 20, 2024.
LINCHPIN CAPITAL: Full Federal Court Rejects Ex-Director Appeal
---------------------------------------------------------------
The Full Federal Court has dismissed an appeal by Peter Daly, a
former director of Linchpin Capital Group Ltd (in liquidation).
The matter, heard before Justice O'Callaghan, Justice McElwaine and
Justice Jackman upheld the previous Federal Court ruling that Mr.
Daly:
* was an officer of a responsible entity of a registered
managed investment scheme,
* breached his duties as an officer of a responsible entity
of a registered managed investment scheme and did not act
in the best interests of members, and
* pay a AUD150,000 penalty and be banned from managing a
corporation for five years.
ASIC Deputy Chair Sarah Court said, 'Today's outcome should act as
a reminder to directors of responsible entities that operate
managed investment schemes that they must act in the best interests
of members.'
The Court ordered that the appeal should be dismissed. In his
judgment, Justice Jackman said the penalty and period of
disqualification ordered by the primary judge were well within the
range of reasonable decisions, and one could not infer any
misapplication of principle from that outcome. Justices O'Callaghan
and McElwaine agreed.
Mr. Daly filed an appeal to the Full Federal Court in February 2024
seeking that the orders made by the trial judge be set aside, or
that the Full Federal Court exercise its discretion to impose a
lesser disqualification of three years and a pecuniary penalty
amount of AUD40,000.
Endeavour was the responsible entity of a registered managed
investment scheme called the Investport Income Opportunity Fund.
Linchpin operated an unregistered managed investment scheme, which
was also called the Investport Income Opportunity Fund. Both funds
were placed into liquidation in 2019.
Linchpin operated through various subsidiaries (including
Endeavour) and provided a range of financial products and funds
management and investment advisory services.
On April 3, 2023, the Federal Court found Endeavour directors Ian
Williams, Paul Raftery, Paul Nielsen and Peter Daly (who was found
to have acted as an officer of Endeavour) breached their duties as
officers of a responsible entity of a registered managed investment
scheme and did not act in the best interests of members.
On Jan. 10, 2024, Justice Cheeseman made orders requiring that each
of the directors pay ASIC's litigation costs and pecuniary
penalties and be banned from managing corporations.
In November 2019, ASIC banned Mr. Williams, Mr. Nielsen, Mr. Daly
and Mr. Raftery from providing any financial services each for a
period of five years.
LUXHAUS GROUP: First Creditors' Meeting Set for Sept. 30
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Luxhaus
Group Pty Ltd will be held on Sept. 30, 2024 at 10:00 a.m. via
Teams videoconferencing facility.
Liam Bellamy and John Kukulovski of Mackay Goodwin were appointed
as administrators of the company on Sept. 19, 2024.
ML AND LT PHILLIPS: First Creditors' Meeting Set for Oct. 2
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of ML and LT
Phillips Pty Ltd will be held on Oct. 2, 2024 at 9:30 a.m. via
virtual meeting.
Benjamin Michael Carson of Farnsworth Carson was appointed as
administrator of the company on Sept. 20, 2024.
OZ LABOUR: First Creditors' Meeting Set for Oct. 1
--------------------------------------------------
A first meeting of the creditors in the proceedings of Oz Labour
Solutions Pty Ltd and DW Project Services Pty Ltd will be held on
Oct. 1, 2024 at 11:30 a.m. virtually via Microsoft Teams
teleconference.
Simon Thorn of PKF was appointed as administrator of the company on
Sept. 19, 2024.
RESIMAC TRIOMPHE 2024-2: S&P Assigns Prelim 'B' Rating to F Notes
-----------------------------------------------------------------
S&P Global Ratings assigned its preliminary ratings to eight
classes of prime residential mortgage-backed securities (RMBS) to
be issued by Perpetual Trustee Co. Ltd. as trustee for RESIMAC
Triomphe Trust - RESIMAC Premier Series 2024-2. RESIMAC Triomphe
Trust - RESIMAC Premier Series 2024-2 is a securitization of prime
residential mortgage loans originated by RESIMAC Ltd. (RESIMAC).
The preliminary ratings assigned reflect the following factors.
The credit risk of the underlying collateral portfolio and the
credit support provided to each rated class of notes are
commensurate with the ratings assigned. Subordination and lenders'
mortgage insurance (LMI) cover provide credit support. The credit
support provided to the rated notes is sufficient to cover the
assumed losses at the applicable rating stress. S&P's assessment of
credit risk takes into account RESIMAC's underwriting standards and
approval process, which are consistent with industrywide practices;
the strong servicing quality of RESIMAC; and the support provided
by the LMI policies on 9.8% of the portfolio.
The rated notes can meet timely payment of interest, and ultimate
repayment of principal under the rating stresses.
Key rating factors are the level of subordination provided, the LMI
cover, the liquidity facility, the principal draw function, and the
provision of an extraordinary expense reserve. S&P's analysis is on
the basis that the notes are fully redeemed by their legal final
maturity date, and S&P does not assume the notes are called at or
beyond the call date.
S&P's ratings also take into account the counterparty exposure to
National Australia Bank Ltd. as liquidity facility provider and
Westpac Banking Corp. as bank account provider.
The transaction documents for the liquidity facility include
downgrade language consistent with S&P Global Ratings' counterparty
criteria. S&P has also factored into its ratings the legal
structure of the trust, which is established as a special-purpose
entity and meets its criteria for insolvency remoteness.
Preliminary Ratings Assigned
RESIMAC Triomphe Trust - RESIMAC Premier Series 2024-2
Class A1, A$200.00 million: AAA (sf)
Class A2, A$700.00 million: AAA (sf)
Class AB, A$55.00 million: AAA (sf)
Class B, A$22.50 million: AA (sf)
Class C, A$10.00 million: A (sf)
Class D, A$4.25 million: BBB (sf)
Class E, A$4.00 million: BB (sf)
Class F, A$1.25 million: B (sf)
Class G, A$3.00 million: Not rated
THINK TANK 2021-2: S&P Raises Class F Notes Rating to BB+ (sf)
--------------------------------------------------------------
S&P Global Ratings raised its ratings on 19 classes of small-ticket
commercial mortgage-backed securities. At the same time, S&P
affirmed its ratings on 18 classes of notes and removed 37 note
classes from under criteria observation (UCO).
The underlying collateral in these transactions includes loans to
prime and nonconforming Australian residents and to self-managed
superannuation fund borrowers, secured by first-registered
mortgages over Australian residential and small-ticket commercial
properties.
S&P Global Ratings' analysis of the credit risk of the underlying
collateral portfolios is based on its "Principles Of Credit
Ratings" criteria, published Feb. 16, 2011. However, S&P has
applied similar assumptions when there are similar factors that
affect borrower performance, such as in residential mortgages.
The rating actions follow S&P's review of these small ticket
non-bank sponsored transactions when applying our updated
methodology and assumptions for assessing pools of Australian
residential loans.
S&P said, "S&P Global Ratings' methodology for assessing pools of
small-ticket commercial mortgages includes different benchmark
default-frequency and market-value decline assumptions for
commercial properties compared with our RMBS global methodology.
This reflects our belief that there are fundamental differences
between the asset types that will only be accentuated as the
economic environment becomes more stressed. As such, we apply
higher archetypal foreclosure frequency anchors for small-ticket
commercial mortgages, ranging from 13.33% at 'AAA' to 1.65% at
'B'.
"This considers our view that the commercial property sector has
historically demonstrated greater volatility in capital values than
residential property. We consequently apply higher market value
decline (MVD) assumptions to commercial properties than to
residential properties. The MVD we apply ranges between 69% and 79%
at a 'AAA' rating stress, depending on the property type.
"Due to the wide range of property types, from a ratings
perspective we classify small-ticket commercial properties into
three categories: commercial, rural, and others. The factors we use
to adjust the benchmarks are generally in line with those seen in
our RMBS global methodology, such as seasoning, repayment method,
and asset location. However, other assumptions are more in line
with our expectations for commercial properties, such as
foreclosure expenses, recovery period and loan-to-value (LTV)
ratio.
"The benchmark LTV ratio ranges between 50% and 65%, and the
recovery period we assume for commercial properties ranges between
24 and 30 months. We do not apply a property value index to
commercial properties; for those loans we use current loan
balance/original loan valuation to calculate the LTV ratio.
Further, we do not apply a separate adjustment for assessed market
over- or undervaluation. Instead, we adjust the MVDs for commercial
properties to reflect this potential additional volatility.
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 certain portfolio
characteristics, and factors used in determining loss severity.
The credit support provided in percentage terms has increased as
the pools have paid down due to the sequential pay structures of
five of the six transactions reviewed. This buildup in credit
support is likely to continue because S&P believes the transactions
will not meet the pro-rata triggers in the coming months.
Additionally, the minimum credit support commensurate with the
respective rating levels has decreased, primarily driven by the
application of the updated methodology and assumptions.
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.
Some portfolios also contain exposure to self-managed
superannuation fund (SMSF) borrowers. S&P said, "Although as a
subsector the performance of SMSF loans has been strong, we apply
an additional adjustment in our credit support calculation to
reflect the more significant consequences of noncompliance in an
ever-changing regulatory landscape, the elevated risk profile of
SMSF lending, limited data history of performance in more stressful
economic periods, and its more nuanced underwriting complexity. Due
to the nature of the product, we expect such loans to have lower
prepayment rates compared with typical prime residential loans and
therefore expect SMSF concentration to increase in these
portfolios."
Ratings Raised And Removed From UCO
Think Tank Commercial Series 2021-2 Trust
Class C: to AA+ (sf) from AA- (sf)
Class D: to A+ (sf) from A- (sf)
Class E: to BBB+ (sf) from BB+ (sf)
Class F: to BB+ (sf) from B+ (sf)
Think Tank Commercial Series 2022-3 Trust
Class B: to AAA (sf) from AA (sf)
Class C: to AA (sf) from A (sf)
Class D: to A (sf) from BBB (sf)
Class E: to BBB (sf) from BB (sf)
Class F: to BB- (sf) from B (sf)
Think Tank Commercial Series 2023-2 Trust
Class B: to AA+ (sf) from AA (sf)
Class C: to A+ (sf) from A (sf)
Class D: to BBB+ (sf) from BBB (sf)
Class E: to BB+ (sf) from BB (sf)
Class F: to B+ (sf) from B (sf)
Triton Bond Trust 2023-3P Series 1
Class B: to AA+ (sf) from AA (sf)
Class C: to A+ (sf) from A (sf)
Class D: to A- (sf) from BBB (sf)
Class E: to BBB- (sf) from BB (sf)
Class F: to BB- (sf) from B (sf)
Ratings Affirmed And Removed From UCO
Blackwattle Series CMBS Trust 2021-1
Class A: AAA (sf)
Class B: AAA (sf)
Class C: AA (sf)
Class D: BBB (sf)
Class E: BB (sf)
Class F: B (sf)
RedZed Trust STC Series 2024-1
Class A-1-S: AAA (sf)
Class A-1-L: AAA (sf)
Class A2: AAA (sf)
Think Tank Commercial Series 2021-2 Trust
Class A1: AAA (sf)
Class A2: AAA (sf)
Class B: AAA (sf)
Think Tank Commercial Series 2022-3 Trust
Class A1: AAA (sf)
Class A2: AAA (sf)
Think Tank Commercial Series 2023-2 Trust
Class A1: AAA (sf)
Class A2: AAA (sf)
Triton Bond Trust 2023-3P Series 1
Class A1-A: AAA (sf)
Class A1-B: AAA (sf)
=========
C H I N A
=========
COUNTRY GARDEN: To Sell Stake in Zhuhai Wanda for US$446 Million
----------------------------------------------------------------
Reuters reports that Country Garden Services, the property services
arm of Chinese property developer Country Garden, said on Sept. 25
it agreed to sell its 1.49% stake in Zhuhai Wanda Commercial
Management for CNY3.14 billion ($446.54 million).
Reuters relates that the sale allows the company to streamline its
investments, recover capital, and refocus on its core business
operations as part of its planned exit strategy, it said.
Once a top developer by sales, Country Garden is undergoing an
offshore debt restructuring after defaulting on its $11 billion
offshore bonds last year, Reuters notes.
The beleaguered company also reported a drop of more than 38% in
its first-half profit for 2024, Reuters discloses.
Country Garden Holdings Company Limited (HKEX:2007), an investment
holding company, invests, develops, and constructs real estate
properties primarily in Mainland China. The company operates in two
segments, Property Development and Construction. It develops
residential projects, such as townhouses and condominiums; and car
parks and retail shops. The company also develops, operates, and
manages hotels. In addition, it researches and develops robots;
sells electronic hardware and food; and provides interior
decoration, agriculture, landscape design, investment and
management consulting, cultural activity planning, and real estate
consulting services.
As reported in the Troubled Company Reporter-Asia Pacific in late
February 2024, Kingboard Holdings-backed money lender Ever Credit
on Feb. 27, 2024, filed a winding-up petition against Country
Garden to the Hong Kong High Court for non-payment of a US$205
million loan.
The TCR-AP reported in late March 2024 that Country Garden has
hired Kroll to carry out a liquidation analysis. Kroll, the New
York-headquartered financial advisory firm, is expected to conduct
an independent business review of Country Garden before projecting
a recovery rate for the developer's creditors under a liquidation
scenario, according to Reuters.
The developer defaulted on US$11 billion of offshore bonds last
year and is in the process of an offshore debt restructuring.
HO WAN KWOK: Alter Ego Decision Upheld
--------------------------------------
In the case captioned as HK INTERNATIONAL FUNDS INVESTMENTS (USA)
LIMITED, LLC, and MEI GUO, Appellants v. LUC A. DESPINS,
Trustee-Appellee, CIVIL NO. 3:23-CV-458 (KAD) (D. Conn.), Judge
Kari A. Dooley of the United States District Court for the District
of Connecticut affirmed the order of the United States Bankruptcy
Court for the District of Connecticut granting summary judgment in
favor of the Chapter 11 Trustee on his counterclaims.
In these consolidated appeals, HK International Funds Investments
(USA) Limited, LLC and Mei Guo challenge the orders of the
Bankruptcy Court granting the Chapter 11 Trustee's motions for
summary judgment in which the Bankruptcy Court determined first
that the Individual Debtor Ho Wan Kwok was the beneficial owner of
a luxury yacht, the Lady May, and second, that HK USA was the alter
ego of Kwok such that the assets held by HK USA, to include the
Lady May, the Lady May II, and $37,000,000 in loan proceeds,
belonged to Kwok's bankruptcy estate.
Appellants argue that the Bankruptcy Court erred in the alter ego
determination because the decision was based on a flawed collateral
estoppel analysis and cannot stand independent of that analysis,
that the Bankruptcy Court otherwise erred in its alter ego
analysis, and that the Bankruptcy Court erroneously determined that
certain facts were undisputed or found that certain undisputed
facts implicated the Individual Debtor. Appellee disagrees, arguing
that the Bankruptcy Court correctly determined that HK USA was the
alter ego of the Individual Debtor not simply as an extension of
the collateral estoppel finding, but because of the undisputed
facts in the record that the Individual Debtor, inter alia,
exercised dominion and control over HK USA. The Court agrees with
the Appellee.
The second counterclaim sought to reverse-pierce the corporate veil
between the Individual Debtor and HK USA. Because the Trustee, who
had stepped into the Individual Debtor's shoes in order to bring
property into the bankruptcy estate, sought to pierce the corporate
veil between the Individual Debtor and HK USA, the situation
presented was one of insider veil-piercing.
Moreover, after the Bankruptcy Court held that Appellants were
collaterally estopped from contesting the issue of ownership over
the Lady May, the Trustee discovered HK USA also owned the Lady May
II. As she testified at a contempt hearing, the District Court
recounts, Ms. Guo was apparently unaware that HK USA owned the Lady
May II and she believed that her brother owned the Lady May II,
thus bolstering the conclusion that the Individual Debtor, not Ms.
Guo, exercised dominion and control over HK USA.
In short, HK USA had no identifiable purpose other than to own the
Lady May and the Lady May II, which itself was held for the benefit
of the Individual Debtor and it functioned to improperly shield the
Individual Debtor's debts from his creditors, the District Court
concludes.
Judge Dooley says, "Each factor favors reverse veil piercing so as
to bring these assets into the bankruptcy estate. The Individual
Debtor exercised dominion and control over HK USA; this dominion
and control contributed to shielding the assets of HK USA from the
bankruptcy estate; there are no innocent shareholders of HK USA who
will be adversely impacted by the reverse veil piercing; and the
Individual Debtor's creditors will gain additional protection
through the bankruptcy estate."
The District Court rejects Appellants' argument that a documented
direct relationship between the Individual Debtor and HK USA, such
as that of a wholly owned subsidiary, is necessary to establish
alter ego status or to reverse pierce HK USA's corporate veil.
The District Court concludes there is no genuine issue of material
fact that HK USA is the alter ego of the Individual Debtor and that
reverse veil piercing is appropriate under the circumstances in
this case. In so holding, the Court concludes that the Bankruptcy
Court's order stands independent of the collateral estoppel finding
and that the collateral estoppel finding is not necessary to the
alter ego determination.
The District Court affirms the Bankruptcy Court order granting
summary judgment in favor of the Trustee on his second counterclaim
and should it be determined that the appeal of the decision on the
first counterclaim is not moot, in the alternative, affirms the
Bankruptcy Court order granting summary judgment in favor of the
Trustee on his first counterclaim. The Clerk of the District Court
is directed to enter judgment in favor of Appellee and close the
case.
A copy of the District Court's decision is available at
https://urlcurt.com/u?l=zlInug
About Ho Wan Kwok
Ho Wan Kwok sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Conn. Case No. 22-50073) on Feb. 15, 2022. Judge
Julie A. Manning oversees the case. Dylan Kletter, Esq., is the
Debtor's legal counsel.
Ho Wan Kwok aka Guo Wengui is an exiled Chinese businessman.
According to Reuters, Guo was a former real estate magnate who fled
China for the U.S. in 2014 ahead of corruption charges. Guo filed
for bankruptcy after a New York court ordered him to pay lender
Pacific Alliance Asia Opportunity Fund $254 million stemming from a
contract dispute. PAX had initially loaned two of Guo's companies
$100 million in 2008 for a construction project in Beijing and sued
Guo when he failed to pay off the loan.
An Official Committee of Unsecured Creditors has been appointed in
the case and is represented by Pullman & Comley, LLC.
Luc A. Despins was appointed Chapter 11 Trustee in the case.
SHINECO INC: Completes $8.2MM Sale of Common Shares to 22 Investors
-------------------------------------------------------------------
Shineco, Inc. disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that on August 22, 2024, the
Company entered into a securities purchase agreement with 22
purchasers, each an unrelated third party to the Company.
Pursuant to the SPA, the Purchasers agree to purchase, and the
Company agreed to issue and sell to the Purchasers, an aggregate of
14,985,000 shares of the Company's common stock, par value $0.001
per share, at a purchase price of $0.55 per share, and for an
aggregate purchase price of $8,241,750. The Shares were offered
under the Company's registration statement on Form S-3 (File No.
333-261229), initially filed with the U.S. Securities and Exchange
Commission on November 19, 2021, as amended on May 11, 2022, and on
June 3, 2022, and was declared effective on June 10, 2022. A
prospectus supplement to the Registration Statement in connection
with this Offering was filed with the U.S. Securities and Exchange
Commission on or about September 10, 2024. The SPA, the transaction
contemplated thereby, and the issuance of the Shares have been
approved by the Company's board of directors.
The Company has received gross proceeds, before deducting the
offering expenses payable by the Company, of $8,241,750 from the
issuance and sale of the Shares. The closing of the transaction
contemplated by the SPA took place on September 10, 2024, in
accordance with Rule 15c6-1 promulgated under the Securities
Exchange Act of 1934, as amended.
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 Quarterly Report for the period
ended March 31, 2024, 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.
YONGHUI SUPERSTORES: Miniso to Acquire 29.4% Stake in Company
-------------------------------------------------------------
MINISO Group Holding Limited, a global value retailer offering a
variety of trendy lifestyle products featuring IP design, on Sept.
23, 2024, announced that it has entered into share purchase
agreements with certain shareholders of Yonghui Superstores Co.,
Ltd to acquire an aggregate of 29.4% of the issued and outstanding
shares of Yonghui for a total cash consideration of approximately
RMB6.3 billion. Upon the consummation of the transaction, the
Company expects to become the largest single shareholder of
Yonghui.
Yonghui is a leading retail chain operator in China, listed on the
Shanghai Stock Exchange (stock code: 601933) since 2010. It
operates approximately 850 supermarkets, offering fresh produce and
daily necessities to consumers across China. Yonghui is one of the
first distribution enterprises in the PRC to introduce fresh
produce into modern supermarkets. In terms of sales scale, it has
consistently ranked second among the top 100 supermarkets in the
PRC in recent years. In 2023, Yonghui generated approximately
RMB78.6 billion in revenue.
The share purchase agreements were entered into between Guangdong
Juncai International Trading Co., Ltd., a wholly owned PRC
subsidiary of the Company ("Guangdong Juncai"), and the respective
sellers. The Dairy Farm Company, Limited, the seller under one of
the share purchase agreements, is an indirectly wholly-owned
subsidiary of DFI Retail Group Holdings Limited, which is a member
of the Jardine Matheson Group. Beijing Jingdong Century Trade Co.,
Ltd. and Suqian Hanbang Investment Management Co., Ltd., the
sellers under the other share purchase agreement, are both
indirectly wholly-owned subsidiaries of JD.com, Inc.
Pursuant to the share purchase agreements, at the closing of the
transaction, Guangdong Juncai will pay to each seller a cash
consideration based on a per share price of RMB2.35, which
represents a premium of 3.1% to the closing price of Yonghui's
shares on the Shanghai Stock Exchange on September 20, 2024. The
Company expects to fund the transaction with a combination of
internal financial resources and external financing.
Concurrently with the execution of the share purchase agreements,
the Company entered into parent guarantees to guarantee the due
performance of Guangdong Juncai of its obligations under the share
purchase agreements. Additionally, Mr. Guofu Ye, Chairman, CEO and
the controlling shareholder of the Company, has given an
irrevocable undertaking to each of the sellers under the share
purchase agreements to vote in favor of any resolution approving
the transaction at the Company's shareholder meetings.
Mr. Ye commented, "I firmly believe that this transaction presents
great growth potential for our company and will bring long-term
value to our shareholders. With our support and leveraging our
expertise in design-led products, Yonghui will be poised to develop
higher-quality self-branded products to cater to evolving consumer
needs. Furthermore, I believe that our collaboration with Yonghui
in retail channel upgrade and supply chain will enable us to share
resources to further enhance economies of scale, optimize the cost
structure and create value for consumers. This transaction will
also expand our access to the essential goods sector, allowing us
to diversify our business and mitigate cyclical risks."
"Meanwhile, we remain confident in and committed to the growth of
our existing business, and will continue to strategically invest in
its development and expansion. We are determined to achieve
MINISO's five-year development strategy of growing our core
business at a compound annual growth rate of no less than 20% over
the next five years, excluding the potential impact of this
transaction." Mr. Ye concluded.
The transaction is subject to customary closing conditions,
including obtaining antitrust clearance from the State
Administration for Market Regulation of China, securing or
completing other necessary regulatory approvals or procedures, as
well as receiving the approval of the Company's shareholders. The
Company currently expects the transaction to close in the first
half of 2025. Under the share purchase agreements, Guangdong Juncai
undertakes to comply with the sell-down restrictions under the
applicable laws with respect to the acquired Yonghui shares
following the completion of the transaction.
MINISO Group is a global value retailer offering a variety of
trendy lifestyle products featuring IP design. The Company serves
consumers primarily through its large network of MINISO stores, and
promotes a relaxing, treasure-hunting and engaging shopping
experience full of delightful surprises that appeals to all
demographics. Aesthetically pleasing design, quality and
affordability are at the core of every product in MINISO's wide
product portfolio, and the Company continually and frequently rolls
out products with these qualities. Since the opening of its first
store in China in 2013, the Company has built its flagship brand
"MINISO" as a globally recognized consuming brand and established a
massive store network worldwide.
About Yonghui Superstores
Yonghui Superstores Co., Ltd. operates various supermarkets in
China. The company was founded in 2001 and is based in Fuzhou,
China.
Yonghui Superstores posted three consecutive annual net losses of
CNY1.329 billion, CNY2.763 billion, and CNY3.943 billion for the
years ended Dec. 31, 2023, 2022, and 2021, respectively.
=========
I N D I A
=========
A. B. PAL: CARE Lowers Rating on INR43.30cr LT Loan to D
--------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
A. B. Pal Electricals Private Limited (ABPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 43.30 CARE D; Downgraded from
Facilities CARE BB-; Stable
Short Term Bank 36.70 CARE D; Downgraded from
Facilities CARE A4
Rationale and key rating drivers
The revision in the ratings assigned to the bank facilities of ABPL
takes into consideration the delay in debt servicing resulting in
overdue charges levied by the lender in the recent past. Further,
the ratings continue to be constrained by stretched liquidity
marked by near full utilisation of working capital limits and
working capital intensive nature of operations. The ratings are
also constrained by low profitability margin owing to trading
nature of business, leveraged financial risk profile and
competitive nature of industry. However, ratings derive comfort
from experienced promoters with long track record of operations,
well-established relationship with the suppliers and company's
improving scale of operations.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Improved liquidity leading to delay/default free track of 90
days.
Analytical approach: Standalone
Outlook: Not Applicable
Detailed description of key rating drivers:
Key weaknesses
* Delay in debt servicing coupled with overdue charges: In January
2024, there was a delay in debt servicing by 4 days owing to
insufficiency of funds in one of the term loans availed by A. B.
Pal Electricals Private Limited (ABPL). Consequently, the lender
imposed overdue charges and cheque bouncing charges which have
remained unpaid during the period under review till 16 May 2024.
* Low Profitability margins: ABPL is engaged in trading of
electrical components and owing to the nature of business, the
company operates on thin profitability since there is no value
addition as marked by PBILDT (Profit before interest, lease
rentals, depreciation and taxes) margin of 1.69% in FY24 (refers to
period from April 1 to March 31) from 1.55% in FY23, however PAT
margin deteriorated to 0.31% in FY24 from 0.33% in FY23 primarily
on account of increase in depreciation and increase in finance cost
due to higher utilization of working capital limits.
* Leveraged financial risk profile: The capital structure of the
company remains leveraged owing to low net worth base with more
reliance on the external debt. As on March 31, 2024, total debt
outstanding increased to INR119.32 crore as against INR104.23 crore
as on March 31, 2023, owing to increase in term loans and higher
utilization of the working capital limits. The overall gearing
ratio of the company remains high at 3.39x as on March 31, 2024
(PY: 3.15x), with Total debt to GCA stood at 36.71x in FY24 (PY:
44.55x).
* Competitive nature of Industry: India continues to import a
significant number of components every year since there is no duty
on importing components, which makes component distribution more
profitable than manufacturing in the country thus explaining the
fact that there are more traders than manufacturers in India. The
continuous development in electronic industry has triggered the
development of electrical and electronic component industry as
well. So, due to these large number of small and medium scale
players, the company remains exposed to the competitive pressure
which puts pressure on the profitability margins.
Key strengths
* Experienced management having long track record of operations:
ABPL was established as partnership firm by Mr. Thaker Pal Singh in
1973 and later on reconstituted as private limited company in the
year 1995 with a view to expand its operations. The promoters have
an industry experience of nearly four decades. The company has a
diverse product portfolio, comprising of electrical cables, wiring,
switch gears and lighting.
* Established customer and supplier base: The company has reputed
supplier base major suppliers being Police wires Pvt Ltd, Havells
India Ltd. Further, the company has a diversified customer base
with top 5 constituting ~ 7% of the total sales in FY24 (PY: ~11%),
this shows that the company is not dependent on a single or a small
group of customers for its sales it has a wide range of customer at
its discretion.
* Improving scale of operations: The TOI (Total operating income)
of the company has grown by around 27% in FY24 and stood at
INR698.26 crore as compared to INR550.48 crore in FY24. The
increase in TOI is on account of healthy demand and industry
positive outlook.
Liquidity: Poor
The liquidity of the company is poor, marked by delay in payment of
interest and instalments due for a term loan coupled with nearly
full utilization of working capital facility for the trailing 12
months ending August 2024. Further, modest free cash and bank
balance of INR0.30 crore as on March 31, 2024 as against INR0.26 Cr
as on March 31, 2023, high collection period of 115 days in FY24
(PY: 123 days). Further, with high limit utilization and recent
delay in debt repayment obligations exerts continued pressure on
liquidity.
A.B. Pal Electricals Pvt. Ltd. (ABPL) was originally established as
a partnership firm in the year 1973 which was later reconstituted
as a private limited company in the year 1995. ABPL is an
authorized stockiest/distributor for electrical components such as
cables, wires, switches including various lighting products, major
suppliers being electrical component manufacturing companies like
Polycab wires Pvt Ltd, Havells India Ltd, Gloster Cables Ltd, RR
Kabel Ltd., Grandlay electricals (India) Pvt Ltd and others. The
Company provides all kinds of lighting solution be it Indoor
Lighting, Outdoor Lighting, Industrial Lighting, Commercial
Lighting, Consumer Luminaire, Decorative Range, International Range
& the Future generation of lighting - LED as well.
ALISHA STEELS: Voluntary Liquidation Process Case Summary
---------------------------------------------------------
Debtor: Alisha Steels Private Limited
IIND Floor, Kohli Complex,
612A, Sri Nagar,
Rani Bagh, Main Road,
Delhi-110034
Liquidation Commencement Date: August 29, 2024
Court: National Company Law Tribunal, Chandigarh Bench
Liquidator: Rajeev Sharma
H.No. 58, (Near Gate No. 9)
Shivalik City, Sector-127, Kharar,
Near Mansa Devi Mandir,
Sahibzada Ajit Singh
Nagar, Punjab-140307
Email: rsrajeevsharmaca@gmail.com
Tel. No.: 09855618446
Last date for
submission of claims: September 28, 2024
BILTECH BUILDING: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Biltech
Building Elements Limited (BBEL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 62.99 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated August 8, 2023,
placed the rating(s) of BBEL under the 'issuer non-cooperating'
category as BBEL had failed to provide information for monitoring
of the rating as agreed to in its Rating Agreement. BBEL continues
to be non-cooperative despite repeated requests for submission of
information through e-mails dated June 23, 2024, July 3, 2024 and
July 13, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Biltech Building Elements limited (BBEL), an Avantha group company,
was incorporated in 2004. It is engaged in manufacturing
'Autoclaved Aerated Concrete Blocks, i.e. AAC-Blocks for 'green
building' process by utilizing fly-ash, lime, cement, gypsum and
aluminium powder as major raw materials.
BIOCON BIOLOGICS: Fitch Assigns 'BB-' IDR, Outlook Stable
---------------------------------------------------------
Fitch Ratings has assigned India's Biocon Biologics Limited (BBL) a
'BB-' Issuer Default Rating (IDR). The Outlook is Stable.
Fitch has also assigned a 'BB' rating to the proposed senior
secured notes to be issued by BBL's subsidiary, Biocon Biologics
Global Plc (BBG). The notes will be unconditionally and irrevocably
guaranteed by BBL and some of its subsidiaries. The notes will be
secured by a first-priority share pledge over BBG, Biosimilar
Collaborations Ireland Limited and Biosimilars Newco Limited.
Therefore, Fitch rates the notes one notch above BBL's IDR.
BBL's rating is based on the credit profile of its stronger parent,
Biocon Limited (BL), under its Parent and Subsidiary Linkage Rating
Criteria. Fitch thinks BL has high strategic and operational
incentives to provide support to its subsidiary.
BBL's rating is backed by its position as a leading biosimilar
company globally, with an established R&D record and healthy
product pipeline, although it is small relative to global pharma
peers. Higher barriers to entry in the biosimilar industry, arising
from larger R&D needs, and a more complex and longer approval
cycle, limit BBL's exposure to pricing pressure compared with
companies focused on small molecule generics.
BL's presence in contract research and manufacturing through a
54.5% stake in Syngene International Limited aids business
diversification, as this business has stable margins and steady
customer relationships.
The Stable Outlook reflects its expectation that BL's leverage will
steadily fall after rising in the financial year ended 31 March
2023 (FY23) due to acquisition of Viatris Inc.'s (BBB/Stable)
biosimilar business. Deleveraging will be aided by sales of
recently launched or approved products from the acquisition in the
next few years. BL also publicly said it is committed to reducing
leverage through a measured approach to growth investments and
dividends, and a potential equity issuance. Fitch does not factor
in equity issuance in its rating case, but if it materialises, it
could accelerate leverage reduction.
Key Rating Drivers
Leading Position in Biosimilars: BBL is a leader in its focused
biosimilar products in key global markets, with a proven R&D record
and in-house manufacturing and commercialisation capabilities
underpinning its competitive advantage, despite a moderate scale.
In the US biosimilar market, BBL has leading positions in
Trastuzumab (third-largest share), Pegfilgrastim (second) and
Insulin Glargine (second), with rising market share in recent
years. In Europe, BBL has top five market shares in Trastuzumab and
Pegfilgrastim. BBL also has robust market shares in several
products in emerging countries.
Healthy Pipeline: BBL's biosimilar pipeline of four late-stage and
nine early-stage assets targets high-value opportunities. New
launches and rising biosimilar penetration, particularly in the US,
should support healthy sales growth despite some price erosion in
existing products. BBL's approved portfolio of four biosimilars in
the US and seven in Europe - including some with first approval
status underscore its robust R&D track record. BL's pipeline of
generic formulations includes high-growth glucagon-like-peptide
products, including Liraglutide, for which it was the first company
to get approval in the UK.
Improving Profitability to Drive Deleveraging: BL's EBITDA net
leverage, measured with proportional consolidation of Syngene, was
5.5x at FYE24, due to acquisition debt. Prior to the acquisition,
BL's EBITDA net leverage was around 2.0x and it has said that it is
focussed on returning leverage to below 3.0x. Fitch expects the
increase in sales of Adalimumab along with launch or ramp-up of
already approved products to boost BL's EBITDA by more than 20% in
FY26 from FY24, and reduce leverage to below 5.0x.
Fitch also expects steady growth in BL's generic formulations
business and Syngene as the pharma funding environment improves.
Fitch expects sustained positive free cash generation after FY25 in
view of the company's prudent approach to new growth investments
after completion of existing projects and stable dividends.
Rating Based on Parent's Profile: BBL's rating is based on the
credit profile of BL. BBL's large financial contribution and
favourable long-term growth prospects underpin the parent's high
strategic incentive to support its subsidiary, which is reflected
in regular financial support. There is integrated management and
decision making and Fitch believes the common brand and synergies
in R&D, compliance and manufacturing processes drive high avoidance
costs, resulting in high operational incentive to provide support.
Fitch assesses BL's legal incentive to support BBL as 'Low'.
Proposed Notes Rated Above IDR: The proposed senior notes are
secured by a pledge of equity shares in BBL's subsidiaries that
hold intellectual property rights for key biosimilar products. The
collateral qualifies as a Category 2 First Lien, as defined in
Fitch's Corporate Recovery Ratings and Instrument Ratings Criteria,
supporting a one-notch uplift from the guarantor's ratings, which
in this case is BBL's IDR.
No Constraint on Recovery Rating: The holders of the proposed notes
will have recourse to a guarantee by BBL, an Indian entity, but
this will not subject the notes to a cap on the Recovery Rating as
described under Fitch's Country-Specific Treatment of Recovery
Ratings Criteria. Its view is based on the flexibility bondholders
will have in enforcing the collateral without having to pursue
BBL's guarantee first. Fitch believes the part of collateral that
is not subject to completion of any insolvency process in India is
sufficient to warrant the rating uplift.
Regulatory Risks: Limited production-facility diversification
exposes BBL to above-average risk from adverse regulatory actions
that could hurt sales and delay new product approvals. The US Food
and Drug Administration in October 2023 classified BBL's Malaysia
plant for potential official action, should remediation steps prove
inadequate. Pricing pressure could also rise from changes to laws
governing drug price negotiations in the US.
Derivation Summary
BL's focus on biosimilar drugs positions its business profile well
against pharma companies focused on small molecule generics,
considering the higher entry barriers and resultant lower exposure
to pricing pressure. Nonetheless, BL has a smaller scale and
narrower pipeline than larger pharmaceutical companies with a focus
on speciality and branded drugs, such as Teva Pharmaceutical
Industries Limited (BB/Positive) and Jazz Pharmaceuticals Public
Limited Company (BB/Stable).
Teva also benefits from wider business diversification, but its
exposure to high pricing pressure in generic products and
persistent litigation challenges partly offsets this, underpinning
BBL's one-notch lower IDR. Teva's better leverage than BL after
factoring in deleveraging in the next two years underscores the
Positive Outlook.
Jazz's one notch higher rating than BBL factors in its stronger
competitive position and margins, backed by a focus on novel drugs,
and lower financial leverage, which is partly counterbalanced by
Jazz's narrower geographic and product diversification.
Hikma Pharmaceuticals PLC (BBB-/Positive) is rated three notches
above BBL due to its larger size and robust positioning in the US
generic injectables market, with stronger profitability. Hikma also
has significantly lower leverage than BL.
BL has a similar scale as Grunenthal Pharma GmbH & Co.
Kommanditgesellschaft (BB/Stable) and its leading market position
in key biosimilar products position it well against Grunenthal's
leading positions in the niche pain management category. BL also
has a better pipeline profile than Grunenthal, which remains
focused on selective acquisitions. Nonetheless, this is more than
offset by BL's markedly higher leverage, justifying BBL's one notch
lower rating.
Glenmark Pharmaceuticals Ltd (BB/Stable) has a weaker competitive
position than BL, considering its focus largely on small molecule
generics, which results in BL's higher margins. This is, however,
more than offset by BL's markedly higher leverage, justifying BBL's
one notch lower rating than Glenmark's.
Key Assumptions
Fitch's key assumptions within its rating case for the issuer:
- BL's consolidated revenue to increase by 5% in FY25 before
growing by the mid-teens over FY26 and FY27 on ramp-up of existing
biosimilar products and new product launches;
- BL's EBITDA margin to improve to 22%-23% over FY25-FY27 on lower
R&D expenses and larger scale (FY24: 21.8%);
- BL's capex as a percentage of sales to moderate to an average of
10.7% over FY25-FY27 on completion of ongoing expansion projects;
- Dividend payout at below 25% of net income.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade
- Sustained reduction in BL's net EBITDA leverage (after
proportional consolidation of Syngene) to close to 4.0x,
potentially due to higher EBITDA or debt reduction following an IPO
or equity issuance.
Factors that could, individually or collectively, lead to negative
rating action/downgrade
- BL's net EBITDA leverage (after proportional consolidation of
Syngene) not on track to reduce to below 5.0x by FY26.
- A weaker competitive position; or an adverse regulatory action
that has potential to affect sales or delay launches of new
biosimilar products
Liquidity and Debt Structure
Proposed Refinancing to Extend Maturity Profile: The proposed notes
and a bank loan, which is estimated to aggregate more than USD1
billion, will extend BL's maturity profile, as the proceeds will be
used to primarily to repay a USD950 million acquisition loan as
well as other term loans that have around INR6 billion in near-term
maturities at end-March 2024.
BL has ready cash (after proportional consolidation of Syngene) of
INR25.5 billion at March 2024, which adequately covers the
remaining deferred purchase consideration of USD160 million
(INR13.3 billion) for the acquisition and moderately negative FCF
expected in its rating case in FY25. BL also had INR21.5 billion in
short-term working capital debt at March 2024, which Fitch expects
the company to roll over in the normal course of business. BL may
face equity-put liability of INR14.7 billion in FY25, but Fitch
believes its stakes in listed companies Syngene and Bicara
Theraputics should support its financial flexibility.
Pro forma for the refinancing, BL's scheduled annual debt
maturities will exceed INR20 billion in FY26, INR10 billion in FY27
and INR20 billion in FY28. Fitch believes BL's improving leverage
will support timely refinancing as its positive free cash
generation after FY25 is unlikely to fully cover the repayment
obligations. Debt reduction from a potential equity issuance will
further strengthen financial flexibility.
Issuer Profile
BBL is a vertically integrated manufacturer of biosimilar
medicines, with presence across the value chain in key markets
globally.
Summary of Financial Adjustments
Fitch has treated BBL's USD1 billion of compulsorily convertible
preference shares as non-debt.
Date of Relevant Committee
20 September 2024
Public Ratings with Credit Linkage to other ratings
BBL's IDR is linked to the credit strength of its parent, BL. BL
has high strategic and operational incentives to provide support to
its subsidiary.
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
----------- ------
Biocon Biologics
Limited LT IDR BB- New Rating
Biocon Biologics
Global Plc
senior secured LT BB New Rating
BYJU'S: Byju's Defaulted on US$1.5BB Loan, Del. Sup. Ct. Rules
--------------------------------------------------------------
The Economic Times reports that the highest court in the US state
of Delaware has upheld a ruling by a lower court that held edtech
firm Byju's to be in default of a $1.5 billion loan.
Following the decision of the Delaware Supreme Court, lenders to
the edtech firm can now demand full repayment, take control of
Byju's US entity Byju's Alpha Inc and appoint Timothy Pohl, Alpha
Inc's court-appointed CEO, as its sole director, the US lenders
said, ET relates.
"This ruling confirms that Byju's was in default, which both Byju
Raveendran (founder) and Riju Ravindran (brother of Byju and
co-founder) personally acknowledged when they signed multiple
amendments to the credit agreement on Byju's behalf from October
2022 to January 2023," the steering committee of the ad hoc group
of term loan lenders to Byju's Alpha Inc said in a statement.
This is the second public statement from the lenders reinforcing
that Byju's and Raveendran must repay the outstanding loan, ET
notes.
According to the court, the edtech company must be held accountable
for its financial defaults and cannot distance itself from
conceding to those defaults and their consequences, the lenders, as
cited by ET, said.
"Byju has attempted to concoct an alternate narrative that Byju's
did not default and to place the blame of the company's failure on
others rather than repay lenders money that is rightfully owed to
us, including disclosing what happened to the $533 million of
missing loan proceeds. It is his unreliable word against that of
the highest court in the state of Delaware," they added.
Earlier, the US lenders had said that the troubled edtech firm must
repay the borrowed $1.2 billion along with interest. According to
these lenders, Byju's has not made any contractually due payment in
more than 17 months.
"Byju's wants to emphasise that the recent conclusion reached by a
Delaware court has no bearing on the ongoing legal proceedings in
India. In any event, the Delaware Supreme Court has merely upheld a
limited ruling by the Chancery court on the validity of one of
their nominees as the director of the shell company, Byju's Alpha
Inc," the edtech firm said in a statement, ET relays.
"It is pertinent to mention that the original debt was due for
repayment by November 2026. Byju's had already paid approximately
$140 million in interest on the TLB before the lenders represented
by Glas Trust incorrectly attempted to accelerate the payment
schedule without court approval," Byju's added.
On September 17, Glas Trust, the trustee for lenders to which
Byju's owes $1.2 billion, moved the Supreme Court challenging its
removal from the committee of creditors (CoC) of the debt-ridden
Think & Learn Pvt Ltd, the edtech firm's parent, by the interim
resolution professional (IRP). The US lender had also called for
the removal of Pankaj Srivastava, the IRP of Think & Learn.
On September 3, Srivastava removed Glas Trust, noting that it did
not represent the minimum 51% of lenders in the consortium that
issued a $1.2 billion term loan to the company, ET recalls.
About Byju's
Based in Bengaluru, Karnataka, India, Byju's operates an online
learning platform intended to deliver engaging and accessible
education. The company's platform makes use of original content,
watch-and-learn videos, animations, and interactive simulations
that make learning contextual, visual, and practical, enabling
students to receive a personalized educational experience.
As reported in the Troubled Company Reporter-Asia Pacific in
mid-July 2024, Byju's will face insolvency proceedings for failure
to pay $19 million in dues to the country's cricket board. Reuters
said Byju's has suffered numerous setbacks in recent years,
including boardroom exits and a tussle with investors who accused
CEO Byju Raveendran of corporate governance lapses, job cuts and a
collapse in its valuation to less than $3 billion. Byju's has
denied any wrongdoing.
According to Reuters, a ruling by India's companies tribunal on
July 16, following a complaint by the Board of Control for Cricket
in India (BCCI), initiated insolvency proceedings. These will
include the appointment of an interim resolution professional,
Pankaj Srivastava, who will oversee the management of Byju's as the
company's board of directors is suspended as per law. CEO
Raveendran will report to the resolution professional and the
company's assets will remain frozen while the proceedings
continue.
The TCR-AP, citing Moneycontrol, reported on Jan. 26, 2024, that
foreign lenders, who collectively extended more than 85% of Byju's
$1.2 billion term loan, have filed an insolvency petition against
the online tutor in India. Moneycontrol related that the bankruptcy
petition was filed in January 2024 in the Bengaluru bench of the
National Company Law Tribunal (NCLT), the people said, requesting
anonymity.
The TCR-AP relayed that the National Company Law Appellate Tribunal
(NCLAT) on Aug. 2, 2024, accepted the settlement between Byju
Raveendran and the Board of Control for Cricket in India (BCCI),
thus removing Byju's parent Think and Learn from the insolvency
resolution process.
BYJU's Alpha, Inc., a U.S. unit of Byju's, sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No.
24-10140) on Feb. 1, 2024. In the petition signed by Timothy R.
Pohl, chief executive officer, the Debtor disclosed up to $1
billion in assets and up to $10 billion in liabilities.
CABLE CORPORATION: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Cable
Corporation of India Limited (CCOIL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 38.85 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 112.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated July 31, 2023,
placed the rating(s) of CCOIL under the 'issuer non-cooperating'
category as CCOIL had failed to provide information for monitoring
of the rating as agreed to in its Rating Agreement. CCOIL continues
to be non-cooperative despite repeated requests for submission of
information through e-mails dated June 15, 2024, June 25, 2024 and
July 5, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
CCOIL was incorporated on November 11, 1957 and was promoted by Mr.
Hiten Khatau. The company manufactures low tension, high tension,
and extra high voltage power cables (23kv to 400kv). The company
also executes turnkey cable contracts and provides solutions. The
manufacturing facility is located at Nashik (Maharashtra).
CAMERICH PAPERS: CARE Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Camerich
Papers Private Limited (CPPL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 122.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 5.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated July 6, 2023,
placed the rating(s) of CPPL under the 'issuer non-cooperating'
category as CPPL had failed to provide information for monitoring
of the rating as agreed to in its Rating Agreement. CPPL continues
to be non-cooperative despite repeated requests for submission of
information through e-mails dated May 21, 2024, May 31, 2024, June
10, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in 2014, CPPL (CIN: U21000GJ2014PTC080492) had setup a
green field project of manufacturing of duplex and triplex paper
board with specialty packaging boards like Folding Box Board (FBB)
and white top Craft Liners (WTLs) which commenced commercial
operation in June, 2018. The Plant is located at Morbi, Gujarat
with installed capacity of manufacturing 90,000 Metric Tonne Per
Annum (MTPA) of different type of paper from waste/recycled papers.
CPPL is promoted by Mr. Kamlesh Sitapara, Mr. Arjun Sitapara
(Sitapara family), Mr. Gunvant Surani (Surani family), Mr.
Yogeshkumar Patel and Mr. Mohanbhai Donga.
Status of non-cooperation with previous CRA: India Ratings has
continued the ratings assigned to the bank facilities of CPPL to
'Issuer Not Cooperating' category vide press release dated March
14, 2024 on account of its inability to carry out a review in the
absence of the requisite information from the company.
CRISIL has continued the ratings assigned to the bank facilities of
CPPL to 'Issuer Not Cooperating' category vide press release dated
July 19, 2023 on account of its inability to carry out a review in
the absence of the requisite information from the company.
DUGGAR FIBER: CARE Keeps D Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Duggar
Fiber Private Limited (DFPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.30 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated August 16,
2023, placed the rating(s) of DFPL under the 'issuer
non-cooperating' category as DFPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
DFPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated July 1, 2024, July
11, 2024 and July 21, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Delhi based Duggar Fiber Pvt. Ltd. (DFPL) was incorporated in
December 1980 by Mr Radhey Shyam Agrawal and Mr. Rajendra Kr
Agrawal. The company is currently being managed by Mr Purshottam Kr
Gupta, Mr Ashok Chauhan and Mr. Sahdev Sharma.
DFPL is engaged in manufacturing and trading of iron & steel
products i.e. mild steel (MS) ingots. The manufacturing facility of
the company is located at SMA Industrial area in Delhi.
Status of non-cooperation with previous CRA: CRISIL has continued
the rating assigned to the bank facilities of DFPL into ISSUER NOT
COOPERATING category vide press release dated January 30, 2024 on
account of its inability to carry out a review in the absence of
requisite information.
ENCHIKANDATHIL JEWELLERY: CARE Keeps D Rating in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of
Enchikandathil Jewellery (EJ) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated July 27, 2023,
placed the rating(s) of EJ under the 'issuer non-cooperating'
category as EJ had failed to provide information for monitoring of
the rating as agreed to in its Rating Agreement. EJ continues to be
non-cooperative despite repeated requests for submission of
information through e-mails dated June 11, 2024, June 21, 2024,
July 1, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Vazhakulam (Kerala) based, Enchikandathil Jewellery (EJ) was
established in the year 1955 as a proprietorship entity by Mr.
Velayudhan. The firm is engaged in jewelry manufacturing and
retailing. Currently, the firm is being handled by Mr. Anilkumar,
son of Mr. Velayudhan, who is a graduate and successfully running
the business over 20 years. The firm is running the business from a
showroom located at Vazhakulam, Ernakulum Dist, Kerala. The firm is
known exclusively for its Gold jewelry. The gold and other stones
are majorly procured domestically from suppliers located in Mumbai,
Maharashtra, Kerala and Trissur. The firm procures 65% of the input
required from suppliers located in Mumbai, Maharashtra, Kerala and
Trissur while balance 35% from NBFCs located in Kerala through
auction basis. Enchikandathil Jewellery is selling the jewelry with
the brand name 'Enchikandathil' in local market.
ESSAR OIL: Insolvency Resolution Process Case Summary
-----------------------------------------------------
Debtor: Essar Oil and Gas Exploration and Production Limited
Regd. Office:
F 20, Balaji Shopping Wide Angle Highway,
Nagalpur, Mahesana,
Gujarat, India 384002
Address at which Books of Account are maintained:
Village/PO Gopalpur, Near Rajendra Nath,
Polytechnic College,
Gopalpur Sarenga Road,
P.S: Kanksha, Durgapur,
West Bengal, India, 71312
Insolvency Commencement Date: September 6, 2024
Estimated date of closure of
insolvency resolution process: March 5, 2025
Court: National Company Law Tribunal, Ahmedabad Bench
Insolvency
Professional: Mohit Bipinchandra Adatiya
406, B M Square 2, Rajlaxmi Park,
Motibaug Road, Above HDFC Bank,
Junagadh, Gujarat, 362001
Email: camohitadatiya@gmail.com
Email: essarogepl.cirp@gmail.com
Last date for
submission of claims: September 20, 2024
GANESH COLD: CARE Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shree
Ganesh Cold Storage (SGCS) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated September 6,
2023, placed the rating(s) of SGCS under the 'issuer
non-cooperating' category as SGCS had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
SGCS continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated July 22, 2024,
August 1, 2024, August 11, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Established in 1999 as a partnership firm, SGCS is engaged into
providing cold storage facility to farmers for storing potatoes on
a rental basis. The firm has controlled atmosphere cold storage
facility located at Deesa; Gujarat. The firm is managed by Mr.
Popatlal Chamanaji Kachhawa, Mr. Kalidas Chamanaji Kachhawa and Mr.
Lalabhai Chamanaji Kachhawa. Besides providing cold storage
facility, the firm also provides interest bearing advances to
farmers for potato farming purposes against the stock of potato
stored.
GOYAL ENTERPRISES: CARE Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Goyal
Enterprises Merrut (GE) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.25 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated September 7,
2023, placed the rating(s) of GE under the 'issuer non-cooperating'
category as GE had failed to provide information for monitoring of
the as agreed to in its Rating Agreement. GE continues to be
non-cooperative despite repeated requests for submission of
information through e-mails dated July 23, 2024, August 2, 2024 and
August 12, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Meerut based Goyal Enterprises (GE) was established as
proprietorship firm by Mr. Ambuj Goyal in 2001. GE is engaged in
the wholesale trading of surgical equipment such as sputum
container, urine container, slide box, dropping bottle etc and
various type of scientific chemicals.
GUARDIAN LIFECARE: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Guardian Lifecare Private Limited
Registered office:
WZ-56, 2nd Floor, Ram Nagar,
Tilak Nagar, New Delhi - 110018
Corporate Office:
Guardian House, Plot No. 55,
Sector-37, Udyog Vihar, Phase-Vi,
Gurgaon - 122001 (Haryana)
Insolvency Commencement Date: September 5, 2024
Estimated date of closure of
insolvency resolution process: March 4, 2025
Court: National Company Law Tribunal, New Delhi Bench-II
Insolvency
Professional: Bharat Bhushan Sethi
G-21, Saket, South,
New Delhi, 110017
Email: bbsethi.adv@gmail.com
Immaculate Resolution Professionals Private Limited,
Unit No. 112, First Floor, Tower-A,
Spazedge Commercial Complex, Sector-47,
Sohna Road, Gurgaon-122018
Email: ibc.guardianlifecare@gmail.com
Last date for
submission of claims: September 19, 2024
HANSRAJ MEMORIAL: CARE Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Hansraj
Memorial Educational Society (HMES) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 19.90 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 13.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated September 8,
2023, placed the rating(s) of HMES under the 'issuer
non-cooperating' category as HMES had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
HMES continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated July 24, 2024,
August 3, 2024, August 13, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Hansraj Memorial Educational Society (HMES) is a part of Jalandhar
(Punjab) based Airwings Services group which is engaged in the
business of tours & travels and HR management. HMES was founded by
Late Mr. Hans Raj Bhatia under the Societies Registration Act of
India on February 1, 2000. Mr. Ajay Bhatia is the President of the
society and his brother, Mr. Deepak Bhatia, is the General
Secretary. HMES is currently operating three schools in the
Jalandhar city - Cambridge International school for girls (CISFG;
established in 2005), Cambridge International School Co-ed (CISC;
established in 2008) and Cambridge International (CISFG;
established in 2005), Cambridge International School Co-ed (CISC;
established in 2008) and Cambridge International Foundation School
(CIFS; established in 2012) and is setting up a new school in
Mohali (Punjab). The schools are affiliated to CBSE (Central Board
of Secondary Education) and are ISO-9001:2008 accredited.
IMPERIAL FASTNERS: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Imperial
Fastners Private Limited (IFPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.30 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.15 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated July 21, 2023,
placed the rating(s) of IFPL under the 'issuer non-cooperating'
category as IFPL had failed to provide information for monitoring
of the rating as agreed to in its Rating Agreement. IFPL continues
to be non-cooperative despite repeated requests for submission of
information through e-mails dated June 5, 2024, June 15, 2024 and
June 25, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Gurgaon (Haryana) based Imperial Fastners Private Limited (IFPL)
was incorporated in 1982 by Mr. Jugal Kishore, Mr. Naval Kishore,
Mr. Sanjeev Sagar and Mr. Puneet Sagar. The company is engaged in
manufacturing of fasteners such as nuts and bolts that finds its
application in the automobile industry. The company has its
manufacturing facility located at Gurgaon, Haryana.
INDIA: Rescues for Large Defaulters May Strike an Informal Note
---------------------------------------------------------------
The Economic Times reports that the Centre could soon put in place
a creditor-led insolvency resolution mechanism, largely involving
out-of-court arrangements for even big loan defaulting firms, to
ease the bankruptcy court burden and quicken recoveries for
lenders, people aware of the development told ET.
ET relates that the new mechanism will stipulate a shorter deadline
for resolution, likely 150 days, compared with the 270 days
(including a 90-day extension) currently stipulated under the
Insolvency and Bankruptcy Code (IBC).
Under the proposed mechanism being finalised, a majority of
unrelated financial creditors and the debtor could reach an
informal agreement on a plan to resolve the bankruptcy, and the
National Company Law Tribunal's (NCLT) role would be limited to
approving this plan, said one of the people cited above, ET
relays.
"After extensive deliberations, it was felt that the application of
the prepackaged mechanism need not be extended (to larger entities)
and it should remain limited to micro, small and medium
enterprises. However, another time-bound, mostly out-of-court
resolution process (the creditor-led resolution mechanism) should
be introduced (for all entities)," said a second person.
The prepackaged insolvency scheme - with a greater informal process
and a shorter resolution deadline - currently applies only to
smaller companies in loan default, ET notes.
According to ET, the government could amend IBC in the winter
session of Parliament, likely to start in December, to introduce
the framework and other changes to the law, said the people cited
above. The idea is to cut delays in resolutions and prevent
stressed asset value from further erosion.
Under the corporate insolvency resolution process (CIRP), the
process is supposed to complete within 180 days and a 90-day
extension is granted, subject to the NCLT approval. But, typically,
the process stretches on, thanks to litigation and delay in
admission. Even a 330-day deadline, which includes time spent on
legal proceedings, is hardly maintained, ET states.
In about 68% of cases where resolution is in progress, the 270-day
deadline has been breached. On an average, the resolution of a
stressed firm took 685 days, ET discloses citing the insolvency
regulator's data as of June 2024.
Unlike in the current CIRP, there would be no formal bankruptcy
admission process in the proposed framework involving the
over-burdened NCLT.
The debtors could be allowed to retain control of the company until
the resolution plan is approved by the NCLT and worked out, subject
to certain riders, said one of the persons, ET relays. This is in
contrast with the CIRP, under which the debtor ceases control upon
the admission of the insolvency case.
The new framework would coexist with the existing CIRP and it would
be up to the lenders to choose which they would like to tap, said
the people.
The government may opt for a phased implementation of the new
resolution framework, in sync with the recommendations of a panel
under Insolvency and Bankruptcy Board of India (IBBI) whole-time
member Sudhaker Shukla.
The new mechanism could loosely be modelled around the panel's
suggestions, with appropriate changes being worked out through
extensive deliberations between the corporate affairs ministry, the
IBBI and other key stakeholders, one of the people told ET.
The panel last year recommended "the adoption of a phased
approach," where only specific financial creditors such as
scheduled commercial banks may initially be granted the right to
trigger the creditor-led resolution process, adds ET.
JHAMB ENTERPRISES: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: M/s. Jhamb Enterprises Private Limited
Registered Office:
#172, Industrial Area A,
Ludhiana-141001, Punjab
Principal Office:
Ferozepur Road,
Fazilka, 152123, Punjab
Insolvency Commencement Date: September 9, 2024
Estimated date of closure of
insolvency resolution process: March 8, 2025
Court: National Company Law Tribunal, Chandigarh Bench
Insolvency
Professional: Bhupinder Sethi
B34-6650/24 B, StreetNo-2,
New Atam Nagar, Jassian Road,
Haibowal, Ludhiana, Punjab, 141001
Email: ip.brsethi@gmail.com
Email: cirp.jhambepl@gmail.com
Last date for
submission of claims: September 23, 2024
KAMA METALS: CARE Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Kama
Metals and Alloys Private Limited (KMAPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated August 3, 2023,
placed the rating(s) of KMAPL under the 'issuer non-cooperating'
category as KMAPL had failed to provide information for monitoring
of the rating as agreed to in its Rating Agreement. KMAPL continues
to be non-cooperative despite repeated requests for submission of
information through e-mails dated June 18, 2024, June 28, 2024 and
July 8, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Delhi based Kama Metals and Alloys Private Limited (KMAPL) was
incorporated in August, 2004 as a private limited company and
started its commercial operations from May, 2008. The company is
currently promoted by Mr. Sunil Kumar and Mr. Sajal Mittal. The
company operates as a rolling mill and is engaged in the
manufacturing of Mild steel billets, mild steel flats and mild
steel pipes. The manufacturing facility of the company is located
at Haridwar, Uttarakhand.
Status of non-cooperation with previous CRA: Brickwork has
continued the rating assigned to the bank facilities of KMAPL into
ISSUER NOT COOPERATING category vide press release dated August 2,
2024 on account of its inability to carry out a
review in the absence of requisite information.
KAPCO ELECTRIC: CARE Keeps C Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Kapco
Electric Private Limited (KEPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.09 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Long Term/Short 7.00 CARE C; Stable/CARE A4;
Term Bank ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated July 24, 2023,
placed the rating(s) of KEPL under the 'issuer non-cooperating'
category as KEPL had failed to provide information for monitoring
of the rating as agreed to in its Rating Agreement. KEPL continues
to be non-cooperative despite repeated requests for submission of
information through e-mails dated June 8, 2024, June 18, 2024 and
June 28, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Delhi-based Kapco Electric Private limited (KEPL); a private
limited company was incorporated in 1983 and is currently being
managed by Mr Shantanu Kulkarni, Mr Sharad Damodar Kulkarni and Mrs
Shashi Kulkarni. KEPL is engaged in manufacturing of power &
distribution transformers.
KARNATAKA POULTRY: CARE Keeps C Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Karnataka
Poultry Farm (KPF) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 21.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated July 27, 2023,
placed the rating(s) of KPF under the 'issuer non-cooperating'
category as KPF had failed to provide information for monitoring of
the rating as agreed to in its Rating Agreement. KPF continues to
be non-cooperative despite repeated requests for submission of
information through e-mails dated June 11, 2024, June 21, 2024,
July 1, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Stable
Koppel (Karnataka) based Karnataka Poultry Farm (KPF) was
established in 1995 as a Partnership Firm which is engaged in
poultry farming and trading of eggs. The partners of the firm are
Mr. T Satish Kumar, Mr. T Raja Sekhar, Mr. T Upendra Reddy, Ms. T
Himabindu, Dr. I Shivakoti Reddy, Ms. I Sudha Rani, Ms. A
Maniswetha and Ms. T Padmavathi. The firm has existing capacity of
7,00,000-layer birds. KPF has its breeding farm in 5 Acres and has
60 employees to look after the operations. The day-to-day
operations are managed by the Managing Partners Mr. T Upendra Reddy
and Dr. I Shivakoti Reddy. The firm purchases inputs for feeding of
birds like maize, soya, broken rice, shell grit and minerals from
local traders. The firm sells its products, eggs, cull birds, and
manure majorly to customers in Bangalore, Koppel and Maharashtra.
Status of non-cooperation with previous CRA: Brickworks has
continued the ratings assigned to the bank facilities of KPF to the
'issuer not-cooperating' category vide press release dated March 8,
2024 on account of its inability to carryout review in the absence
of requisite information from the firm.
MISHAL CONSTRUCTION: CARE Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Mishal
Construction Private Limited (MCPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 15.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated July 31, 2023,
placed the rating(s) of MCPL under the 'issuer non-cooperating'
category as MCPL had failed to provide information for monitoring
of the rating as agreed to in its Rating Agreement. MCPL continues
to be non-cooperative despite repeated requests for submission of
information through e-mails dated June 15, 2024, June 25, 2024 and
July 5, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in 2008, Mishal Construction Private Limited (MCPL) is
engaged in real estate developments in Mumbai. The company was
founded by Mr. Ajit Kumar Jain & Mr. Navin Kumar Jain and has been
primarily focusing on redevelopment project in and around Mumbai.
MITHRA COACHES: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Mithra
Coaches Private Limited (MCPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 28.11 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated July 20, 2023,
placed the rating(s) of MCPL under the 'issuer non-cooperating'
category as MCPL had failed to provide information for monitoring
of the rating as agreed to in its Rating Agreement. MCPL continues
to be non-cooperative despite repeated requests for submission of
information through e-mails dated June 4, 2024, June 14, 2024, June
24, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Mithra Coaches Private Limited (MCPL) was incorporated in 2008 and
is engaged in manufacturing of structural bodies for buses,
containers, light commercial vehicle, bunk houses, trailers, water
tankers, and oil tankers. The company is promoted by Mr. Maganti
Subrahmanyam (Chairman), Mr. M. Venugopal (Director), Mr. N.
Seshadri Sekhar (Director). Mr. Madhusudhana Sarma, Mr. M.
Chandramouli (Director). The manufacturing facility of the company
is located in Veerapanenigudem village, Andhra Pradesh and has a
capacity of manufacturing 300 buses and 240 containers in a year.
NARIAN PERIWAL: CARE Lowers Rating on INR11.00cr LT Loan to D
-------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Shiv Narian Periwal & Sons Private Limited (SNPSPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.00 CARE D; ISSUER NOT COOPERATING
Facilities (Rating continues to remain
under ISSUER NOT COOPERATING
category and Downgraded from
CARE B-; Stable)
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated August 16,
2023, placed the rating(s) of SNPSPL under the 'issuer
non-cooperating' category as SNPSPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. SNPSPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated July
1, 2024, July 11, 2024, July 21, 2024 and September 16, 2024 among
others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of SNPSPL have been
revised on account of non-availability of requisite information.
The rating revision also considers ongoing delays in debt servicing
as recognized from publicly available information i.e., CIBIL
filings.
The entity was established as a proprietorship firm in April, 1978
by Mr. Sunil Periwal and later got reconstituted as a private
limited company in June 2014 with the current name. SNPSPL is
engaged in the trading of diversified agriculture products like
fertilizers, seeds and pesticides. SNPSPL is the authorized dealer
of reputed companies like Syngenta India Limited, Bayer Crop
Science Limited, Rallis India Limited, Shriram Chemicals and
Fertilizers (a unit of DCM Shriram Limited) and Rasi Seeds Private
Limited. The traded goods are sold to various wholesalers located
in Punjab, Haryana, Rajasthan etc.
Status of non-cooperation with previous CRA: Brickwork has
continued the rating assigned to the bank facilities of SNPSPL into
Issuer Not Cooperating category vide press release dated November
20, 2023 on account of its inability to carry
out a review in the absence of requisite information.
CRISIL has continued the rating assigned to the bank facilities of
SNPSPL into Issuer Not Cooperating category vide press release
dated July 31, 2024 on account of its inability to carry out a
review in the absence of requisite information.
NATH MOTORS: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Nath Motors
Private Limited (NMPL) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 42.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated July 28, 2023,
placed the rating(s) of NMPL under the 'issuer non-cooperating'
category as NMPL had failed to provide information for monitoring
of the rating as agreed to in its Rating Agreement. NMPL continues
to be non-cooperative despite repeated requests for submission of
information through e-mails dated June 12, 2024, June 22, 2024 and
July 2, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in 2002, NMPL is an authorised dealer of passenger
vehicles and spare parts of Honda Cars India Ltd (Honda) operating
since April 2013. The company currently operates 2 showrooms, one
each in Delhi and Faridabad under the brand name Delight Honda,
equipped with 3S (sales, service and spares) facilities.
Status of non-cooperation with previous CRA: CRISIL has continued
the rating assigned to the bank facilities of NMPL into Issuer Not
Cooperating category vide press release dated September 20, 2023 on
account of its inability to carry out a review in the absence of
requisite information.
NATHJI COTTON: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shree
Nathji Cotton & Oil Industries (SNCOI) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.66 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated September 8,
2023, placed the rating(s) of SNCOI under the 'issuer
non-cooperating' category as SNCOI had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. SNCOI continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated July
24, 2024, August 3, 2024, August 13, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Morbi-based (Gujarat) SNCOI is a partnership firm and was
established in July, 2015 by Mr Kamleshbhai Likhiya Mr Girishbhai
Likhiya and Mr Bharatbhai Charola. SNCOI is engaged into cotton
ginning, cleaning and bailing process. The firm procures raw
cotton from farmers and sells its products in domestic market to
the states like Maharshtra, Tamilnadu etc.
NEELAM DYEING: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Neelam
Dyeing and Printing House Private Limited (NDPHPL) continues to
remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated August 31,
2023, placed the rating(s) of NDPHPL under the 'issuer
non-cooperating' category as NDPHPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. NDPHPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated July
16, 2024, July 26, 2024 and August 5, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Neelam Dyeing and printing house private limited (NDPHPL) was
incorporated in the year 2014 by Mr. Sandeep Singh and Ms. Neha and
it is engaged in processing of fabric on job work basis and its
full operation is expected to start from June 2018.
NHS INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of NHS
Industries (NI) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.03 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated July 26, 2023,
placed the rating(s) of NI under the 'issuer non-cooperating'
category as NI had failed to provide information for monitoring of
the rating as agreed to in its Rating Agreement. NI continues to
be non-cooperative despite repeated requests for submission of
information through e-mails dated June 10, 2024, June 20, 2024,
June 30, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
NHS Industries (NI) was established in 2016, by Mr. Bhargav Reddy
N.S for manufacturing of High-Density Polyethylene
(HDPE)/Polypropylene (PP) Woven Bags and Fabrics. The firm majorly
manufacture bags which is used in Cement, Sugar & Rice Industry.
The manufacturing unit is located at KIADB, Kudumalakunte,
Gauribidanur, Karnataka. The Proprietor of the firm is a qualified
graduate, however does not have any experience in the business. The
firm has an installed capacity of 200 MTPM. The firm purchases
calcium carbonate and Polypropylene from Plasmix Private Ltd and
Mangalore Refinery and Petrochemicals Limited. The firm has reputed
clientele i.e., ACC Limited, JSW Cement Limited and other
customers.
Status of non-cooperation with previous CRA: Acuite (SMERA) has
continued the ratings assigned to the bank facilities of NI to the
'issuer not-cooperating' category vide press release dated July 10,
2023 on account of its inability to carryout review in the absence
of requisite information from the firm.
NOOR IMPEX: CARE Keeps D Debt Ratings in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Noor Impex
Private Limited (NIPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 18.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated July 11, 2023,
placed the rating(s) of NIPL under the 'issuer non-cooperating'
category as NIPL had failed to provide information for monitoring
of the rating as agreed to in its Rating Agreement. NIPL continues
to be non-cooperative despite repeated requests for submission of
information through e-mails dated May 26, 2024, June 5, 2024, June
15, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Gandhidham-based (Gujarat), NIPL was incorporated in the year 2009
by Latiwala family by Mr Allaudin Latiwala, his two sons Mr Shabbir
Latiwala and Mr Yusuf Latiwala and his wife, Mrs Shaheda Latiwala
which afterwards operated by Mr. Shabbir Latiwala and Ms. Arvaben
Shabbir Latiwala. The wood logs are imported from Malaysia, New
Zealand and Africa while the processed timbers are sold to the
customers based in Maharashtra, Gujarat, Madhya Pradesh and Uttar
Pradesh.
PRAKASH CORRUGATED: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Prakash
Corrugated Products (PCP) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 22.31 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.02 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated September 1,
2023, placed the rating(s) of PCP under the 'issuer
non-cooperating' category as PCP had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
PCP continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated July 17, 2024, July
27, 2024 and August 6, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
PCP was established in September 2001, as a proprietorship concern
and is involved in manufacturing of make to order corrugated boxes.
PCP's unit is located at Verna, Goa.
Status of non-cooperation with previous CRA: Acuite has continued
the rating assigned to the bank facilities of PCP under Issuer Not
Cooperating category vide press release dated December 28, 2023 on
account of its inability to carry out a review in the absence of
the requisite information from the firm.
RAJ-SNEH AUTO: CARE Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Raj-Sneh
Auto India Private Limited (RAIPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 27.27 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 34.10 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated August 28,
2023, placed the rating(s) of RAIPL under the 'issuer
non-cooperating' category as RAIPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. RAIPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated July
13, 2024, July 23, 2024 and August 2, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Raj-Sneh Auto India Private Limited (RAIPL) promoted by Mr Ashok
Kumar Jain and Mr Manoj Kumar Gupta who have an experience of more
than two decade in auto dealership business was incorporated in
2005 and is an authorized dealer of Maruti Suzuki India Limited
(MSIL) vehicles. It is engaged in the sale of new cars, servicing
of vehicles, sale of spare parts, and sale and purchase of
pre-owned cars. RSAIPL operates four showrooms (all 3S), six
service and one True Value outlets in and around Meerut.
RANA STEELS: CARE Keeps D Debt Ratings in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Rana
Steels India Private Limited (RSIPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 26.24 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term/ 4.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated August 25,
2023, placed the rating(s) of RSIPL under the 'issuer
non-cooperating' category as RSIPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. RSIPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated July
10, 2024, July 20, 2024 and July 30, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Muzaffarnagar (Uttar Pradesh) based Rana Steels India Limited
(RSIPL), was initially incorporated in 1992 under the name K. K.
Steels Limited by Mr Kadir Rana, as a closely held company. In
2009, the company was renamed to its current name. The company is
currently being managed by Mr. Shah Mohammad Rana, Mr. Aslam Tyagi
and Mr. Sahajad as directors of the company. The company is engaged
in manufacturing of Mild Steel (M.S.) angles, T-Iron, channels,
bars and rounds. RSIL sells its products under the brand name of
"RANA", which is a regionally known brand. RSPL is a part of "Rana
Group" which has diversified business such as rolling mills,
induction furnaces, paper mill, sponge iron plant and refractory
plant.
Status of non-cooperation with previous CRA: Brickwork has
continued the rating assigned to the bank facilities of RSIPL into
Issuer Not Cooperating category vide press release dated September
19, 2023 on account of its inability to carry out a
review in the absence of requisite information.
REETHU TOBACCO: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Reethu
Tobacco Traders (RTT) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.60 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated September 5,
2023, placed the rating(s) of RTT under the 'issuer
non-cooperating' category as RTT had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
RTT continues to be non-cooperative despite repeated requests for
submission of information through emails dated July 21, 2024, July
31, 2024, August 10, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Andhra Pradesh based, Reethu Tobacco Traders (RTT) was established
in the year 2010 as a proprietorship concern by Mr. Gogineni
Venkateswara Rao. Mr. Gogineni Venkateswara Rao is an authorized
licensed holder from Government of Andhra Pradesh for processing
and selling of Virginia tobacco. RTT is mainly engaged in
processing and selling of Virginia tobacco. The processing unit for
separation of tobacco leaves is located at Tangutur (Andhra
Pradesh) which is 25 km away from Ongole (Andhra Pradesh) where
tobacco is one of the major crops. The firm has reputed client base
like Godfrey Phillips India Limited and Premier Tobacco Packers
Private Limited.
ROOPCHAND HOTELS: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Roopchand
Hotels Private Limited (RHPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.58 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated July 26, 2023,
placed the rating(s) of RHPL under the 'issuer non-cooperating'
category as RHPL had failed to provide information for monitoring
of the rating as agreed to in its Rating Agreement. RHPL continues
to be non-cooperative despite repeated requests for submission of
information through e-mails dated June 10, 2024, June 20, 2024 and
June 30, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Roopchand Hotels Private Limited was incorporated in April 1992 and
is managed by the Mr. Ramchand Chabbrani, Mr. Tikamdas Chabbrani
and Mr. Ottanlal Chabbrani. RHPL is engaged in managing a hotel
namely Gomati and trading of seasonal fruits segment. The hotel
Gomati is spread over 2500 sq mt and is situated in Nagpur,
Maharashtra.
SAMBANDH FINSERVE: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Sambandh Finserve Private Limited
Plot No. O-4/9, Civil Township,
PS. Raghunathpalli, Sundargarh,
Rourkela, Orissa
India, 769004
Insolvency Commencement Date: September 5, 2024
Estimated date of closure of
insolvency resolution process: March 4, 2025
Court: National Company Law Tribunal, Cuttack Bench
Insolvency
Professional: Saradindu Jena
Ou No. 510, 5th Floor,
Esplanade One, 721, Rasulgarh,
Bhubaneswar, Orissa, 751010
Email: ip.jena2017@gmail.com
Email: sambandh.cirp@gmail.com
Last date for
submission of claims: September 19, 2024
SHARDA RETAILS: CARE Keeps B Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sharda
Retails Private Limited (SRPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 26.72 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated July 10, 2023,
placed the rating(s) of SRPL under the 'issuer non-cooperating'
category as SRPL had failed to provide information for monitoring
of the rating as agreed to in its Rating Agreement. SRPL continues
to be non-cooperative despite repeated requests for submission of
information through e-mails dated May 25, 2024, June 4, 2024, June
14, 2024, September 16, 2024, among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of SRPL have been
revised on account of delays in debt servicing recognized from
publicly available information. i.e. CIBIL filings
Kolkata based Sharda Retails Private Limited (SRPL) was
incorporated as a private limited company in November 1990.
Currently, the company is managed by Mr. Brijesh Kumar Agarwal and
Mr. Suman Agarwal. Since its inception, the company has been
engaged in retailing of readymade garments for men and women. The
company also deals in various other accessories and household
items. The company procures its traded materials from various
states like Mumbai, Kolkata, Delhi, Ghaziabad, Ahmadabad and
others. The company sells its products through 13 exclusive
showrooms under the brand name “Geeta Fashions spreading across
various states of Eastern India like West Bengal, Jharkhand and
Orrisa. Furthermore, the company also sells its products through
vendors all over India.
SHRIRAM FINANCE: Fitch Assigns BB(EXP) Rating to USD Sr. Sec. Bonds
-------------------------------------------------------------------
Fitch Ratings has assigned India-based Shriram Finance Limited's
(SFL, BB/Stable) proposed US dollar-denominated senior secured
bonds an expected rating of 'BB(EXP)'. The final rating is subject
to the receipt of final documentation conforming to information
already received.
The proposed bonds will carry a fixed-rate coupon payable
semi-annually and will be secured by a fixed charge over specified
accounts receivable, in line with SFL's domestic secured bonds.
They are also subject to maintenance covenants that require SFL to
meet regulatory capital requirements at all times, maintain a net
stage 3 asset ratio equal to or less than 7%, and ensure its
security coverage ratio is equal to or greater than 1x at all
times.
SFL will issue the proposed bonds in the international market under
the Reserve Bank of India's external commercial borrowings
framework. The bonds will be issued under SFL's USD3.5 billion
global medium term-note programme.
Key Rating Drivers
SFL's proposed bonds are rated at the same level as its Long-Term
Foreign-Currency Issuer Default Rating (IDR), in accordance with
Fitch's rating criteria.
Most of SFL's debt is secured and Fitch believes that non-payment
of the company's senior secured debt would best reflect the uncured
failure of the entity. SFL can issue unsecured debt in the overseas
market, but such debt is likely to constitute a small portion of
its funding and thus cannot be viewed as its primary financial
obligation.
For more information on the key rating drivers and rating
sensitivities on the company, please see Fitch Affirms Shriram
Finance at 'BB'; Outlook Stable.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Any negative action on SFL's Long-Term Foreign-Currency IDR would
drive similar action on the expected rating on the proposed bonds.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
An upgrade of SFL's Long-Term Foreign-Currency IDR would result in
corresponding action on the expected rating.
Date of Relevant Committee
17 May 2024
ESG Considerations
SFL has an ESG Relevance Score of '3' for Customer Welfare,
compared with the standard score of '2' for the finance and leasing
sector. This reflects its retail-focused operation, which exposes
it to risks around practices of fair lending, pricing transparency,
repossession, foreclosure and collection. Aggressive practices in
these areas may subject the company to legal, regulatory and
reputational risk that may negatively affect its credit profile.
The relevance score of '3' for this factor reflects Fitch's view
that these risks are adequately managed and have a low impact on
SFL's credit profile at present.
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
----------- ------
Shriram Finance
Limited
senior secured LT BB(EXP) Expected Rating
SHRIRAM FINANCE: S&P Assigns 'BB' Rating to USD Sr. Secured Notes
-----------------------------------------------------------------
S&P Global Ratings assigned its 'BB' long-term issue credit rating
to U.S. dollar-denominated senior secured bonds that Shriram
Finance Ltd. proposes to issue. The rating is subject to its review
of the final issuance documentation.
The company will issue the bond under its US$3.5 billion
multi-currency global medium-term note (GMTN) program. It will
allocate the proceeds to social lending in accordance with its
social finance framework.
S&P equalizes the rating on the bond with the long-term issuer
credit rating on Shriram Finance (BB/Stable/B). The bond is the
direct and unconditional obligation of the India-based finance
company. It is secured and will rank equally, without any
preference, with all other outstanding secured and unsubordinated
obligations of the issuer.
The GMTN program has performance-related covenants. A breach of
those covenants can result in a default and early redemption of the
bond, subject to approval from India's central bank. These
covenants state that Shriram Finance's capital adequacy ratio
should comply with the minimum regulatory requirements, and its net
Stage 3 loan ratio should be equal to or less than 7.0%. Stage 3
loans are impaired loans that are at least 90 days overdue.
S&P's ratings on Shriram Finance reflect the company's dominant
market position in financing pre-owned commercial vehicles, strong
capitalization, high credit costs, and reliance on wholesale
borrowings. As of end-June 30, 2024, the company had a capital
adequacy ratio of 20.3%. This was comfortably above the central
bank's minimum requirement of 15%. Its net Stage 3 loans made up
2.7% of total loans.
SPICEJET: Faces Another Insolvency Plea From Operational Creditor
-----------------------------------------------------------------
The Telegraph Online reports that the National Company Law Tribunal
(NCLT) on Sept. 23 issued notice to debt-ridden air carrier
SpiceJet over the plea filed by one of its operational creditors.
A two-member NCLT bench, comprising Mahendra Khandelwal and Sanjeev
Tanjan, has directed Spicejet to file a reply and list the matter
for the next hearing on November 14, The Telegraph relates.
SpiceJet is already facing several insolvency petitions from
creditors, including Willis Lease, Aircastle Ireland Ltd,
Wilmington and Celestial Aviation at NCLT and the appellate
tribunal NCLAT.
According to The Telegraph, the latest petition is by Techjockey
Infotech Pvt Ltd, an operational creditor, filed under section 9 of
the Insolvency & Bankruptcy Code, through Karanjawala & Co.
The Telegraph relates that Techjockey Infotech claimed a default of
nearly INR1.2 crore owed by SpiceJet against software services
availed by them and requested to initiate a corporate insolvency
resolution process (CIRP) against the air carrier.
It contended that its debt has been acknowledged by SpiceJet,
though it has not been yet complied, the report adds.
About Spicejet
SpiceJet Limited -- http://www.spicejet.com/-- is an India-based
low-budget air carrier. The Company operates daily flights between
major cities in India. The carrier is India's second-biggest budget
airline, after IndiGo.
SpiceJet has faced a series of insolvency pleas from various
parties in the National Company Law Tribunal (NCLT) over pending
dues. These include Wilmington Trust SP Services (Dublin), Willis
Lease Finance, Celestial Aviation, Aircastle (Ireland) Ltd, and
Alterna Aircraft, and AWAS entities from Ireland.
The NCLT has already rejected the pleas of Willis Lease Finance and
Wilmington Trust SP, while SpiceJet reached a settlement with
Celestial Aviation, according to Livemint.com.
As reported in the Troubled Company Reporter-Asia Pacific in late
March 2024, Moneycontrol said Alterna Aircraft BV Limited on March
18 withdrew its insolvency plea against SpiceJet at the NCLT. The
lessor plans to fight the same at an appropriate forum.
The plea of Aircastle is still pending.
Both Wilmington Trust and Willis Lease Finance have moved the
National Company Law Appellate Tribunal (NCLAT) challenging the
dismissal of their insolvency plea by NCLT, the Economic Times
said.
In May 2024, Engine Lease Finance BV filed the most recent
insolvency plea, claiming unpaid rental dues totalling more than
$16.72 million, including interest, for eight leased engines,
Livemint.com says.
SURYA COTTON: CARE Keeps D Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Surya
Cotton Industries (SCI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.83 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated September 6,
2023, placed the rating(s) of SCI under the 'issuer
non-cooperating' category as SCI had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
SCI continues to be non-cooperative despite repeated requests for
submission of information through emails dated July 22, 2024,
August 1, 2024, August 11, 2024, among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Surya Cotton Industries (SCI) was established in October, 2011 as a
partnership concern by five partners. SCI is engaged in cotton
ginning and pressing. SCI is into the business of manufacturing of
cotton bales, cotton seed cake and cotton seed oil with installed
capacity of 1,500 Metric Tonnes Per Annum (MTPA), 2,800 MTPA and
336 MTPA respectively.
TRANSSTADIA TECHNOLOGIES: CARE Keeps C Rating in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of
Transstadia Technologies Private Limited (TTPL) continue to remain
in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 2.25 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 2.50 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated July 24, 2023,
placed the rating(s) of TTPL under the 'issuer non-cooperating'
category as TTPL had failed to provide information for monitoring
of the rating as agreed to in its Rating Agreement. TTPL continues
to be non-cooperative despite repeated requests for submission of
information through e-mails dated June 8, 2024, June 18, 2024 and
June 28, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Transstadia Technologies Pvt Ltd (TTPL) was incorporated in
November 2010 by the promoters of Setco group, led by Mr. Harish K
Sheth and is involved in the business of manufacturing, selling and
leasing of Modular are na systems (T-Box). Manufacturing plant of
the company is situated at Kalol, Gujrat.
=====================
N E W Z E A L A N D
=====================
AMPHIBIAN LIMITED: Court to Hear Wind-Up Petition on Oct. 1
-----------------------------------------------------------
A petition to wind up the operations of Amphibian Limited will be
heard before the High Court at Wellington on Oct. 1, 2024, at 10:00
a.m.
APRA New Zealand Limited filed the petition against the company on
Aug. 1, 2024.
The Petitioner's solicitor is:
Daniel Nilsson
LeeSalmonLong
Level 34, Vero Centre
48 Shortland Street
Auckland 1010
G4 NATCONTRACTING: Court to Hear Wind-Up Petition on Oct. 1
-----------------------------------------------------------
A petition to wind up the operations of G4 Natcontracting Limited
will be heard before the High Court at Wellington on Oct. 1, 2024,
at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on July 31, 2024.
The Petitioner's solicitor is:
Pirimi Alexander Mcdougall-Moore
Legal Services
Asteron Centre
55 Featherston Street
PO Box 895
Wellington
KORU HOMES: Creditors' Proofs of Debt Due on Oct. 15
----------------------------------------------------
Creditors of Koru Homes NZ Limited are required to file their
proofs of debt by Oct. 15, 2024, to be included in the company's
dividend distribution.
The High Court at Wellington appointed Heath Gair of Palliser
Insolvency as liquidators on Sept. 9, 2024.
LAS COLOR: Creditors' Proofs of Debt Due on Oct. 16
---------------------------------------------------
Creditors of Las Color Limited are required to file their proofs of
debt by Oct. 16, 2024, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Sept. 16, 2024.
The company's liquidator is:
Brenton Hunt
PO Box 13400
City East
Christchurch 8141
ORIGIN CORPORATION: Court to Hear Wind-Up Petition on Oct. 3
------------------------------------------------------------
A petition to wind up the operations of Origin Corporation Limited
will be heard before the High Court at Christchurch on Oct. 3,
2024, at 10:00 a.m.
Putian Champion Trustee Limited filed the petition against the
company on Aug. 7, 2024.
The Petitioner's solicitor is:
James Turner
5/7 Corinthian Drive
Albany
Auckland
=================
S I N G A P O R E
=================
GOLD N HOUSE: Court Enters Wind-Up Order
----------------------------------------
The High Court of Singapore entered an order on Sept. 13, 2024, to
wind up the operations of Gold N House Pte. Ltd.
Maybank Singapore Limited filed the petition against the company.
The company's liquidator is:
Gary Loh Weng Fatt
c/o BDO Advisory
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
J FOODGROUP: Court Enters Wind-Up Order
---------------------------------------
The High Court of Singapore entered an order on Sept. 13, 2024, to
wind up the operations of J Foodgroup Pte. Ltd.
Maybank Singapore Limited filed the petition against the company.
The company's liquidator is:
Gary Loh Weng Fatt
c/o BDO Advisory
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
PRADEO PTE: Court Enters Wind-Up Order
--------------------------------------
The High Court of Singapore entered an order on Sept. 13, 2024, to
wind up the operations of pradeo Pte. Ltd.
RHB Bank Berhad filed the petition against the company.
The company's liquidators are:
Abuthahir Abdul Gafoor
Yessica Budiman
AAG Corporate Advisory
144 Robinson Road
#14-02 Robinson Square
Singapore 068908
SRI LANKA MARINE: Creditors' Proofs of Debt Due on Oct. 11
----------------------------------------------------------
Creditors of Sri Lanka Marine Food Pte. Ltd. are required to file
their proofs of debt by Oct. 11, 2024, to be included in the
company's dividend distribution.
The company's liquidator is:
Gary Loh Weng Fatt
c/o BDO Advisory
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
VIEWERS CHOICE: Goh Tiong Hong Named as Provisional Liquidator
--------------------------------------------------------------
Goh Tiong Hong on Sept. 16, 2024, was appointed as provisional
liquidator of Viewers Choice Pte Ltd and Asia Choice Limited.
The liquidator may be reached at:
Goh Tiong Hong
c/o 60 Paya Lebar Road
#10-03 Paya Lebar Square
Singapore 409051
=================
S R I L A N K A
=================
SRI LANKA: IMF to Work With New President on US$3 Billion Loan
--------------------------------------------------------------
Bloomberg News reports that the International Monetary Fund said
it's looking forward to working with Sri Lanka's newly elected
leftist president, including on the latest review of the country's
$3 billion bailout package.
"We will discuss the timing of the third review of the
IMF-supported program with the new administration as soon as
practicable," the organization said in a statement after President
Anura Kumara Dissanayake was sworn into office on Sept. 23, notes
the report. "We look forward to working together with President
Dissanayake and his team towards building on the hard-won gains
that have helped put Sri Lanka on a path to economic recovery since
entering one of its worst economic crises in 2022."
According to Bloomberg, Dissanayake had campaigned on a promise to
reopen negotiations with the IMF on the country's big loan program.
It came with deeply unpopular tax hikes and spending cuts that made
the cost-of-living crisis a top issue for voters.
Reviewing the debt plan, though, risks delaying additional loans
from the international organization. Sri Lanka needs to meet
certain fiscal criteria before the next round of funding is
released, Bloomberg notes.
Bloomberg says the country's former president, Ranil
Wickremesinghe, brokered the deal with the IMF and said upending it
would be a costly mistake for the economy. Prior to the cash
injection, the country faced an unprecedented economic crisis where
spiraling inflation wiped out household savings and ignited
protests.
Investors hope that Anura Kumara Dissanayake will stick with the
loan plan. Rizvie Salih, an executive committee member of the
president's coalition party, said on Sept. 21 that the country will
remain with the program but seek modifications, Bloomberg relays.
In its statement, the IMF said the recent agreement with
bondholders "represents significant progress in Sri Lanka's debt
restructuring process," adding that it's still "subject to
confirmation on comparability of treatment by Sri Lanka's Official
Creditors Committee."
About Sri Lanka
Sri Lanka, formerly known as Ceylon and officially the Democratic
Socialist Republic of Sri Lanka, is an island country in South
Asia. It lies in the Indian Ocean, southwest of the Bay of Bengal,
and southeast of the Arabian Sea; it is separated from the Indian
subcontinent by the Gulf of Mannar and the Palk Strait. Sri Lanka
shares a maritime border with India and the Maldives. Sri
Jayawardenepura Kotte is its legislative capital, and Colombo is
its largest city and financial centre.
The island nation defaulted on its foreign debt for the first time
in its history in April 2022 as the worst financial crisis since
independence from Britain in 1948 crushed its economy.
As reported in the Troubled Company Reporter-Asia Pacific in early
October 2023, Fitch Ratings upgraded Sri Lanka's Long-Term
Local-Currency Issuer Default Rating (IDR) to 'CCC-' from 'RD'
(Restricted Default). Fitch typically does not assign Outlooks to
sovereigns with a rating of 'CCC+' or below. The Long-Term
Foreign-Currency IDR has been affirmed at 'RD' and the Country
Ceiling at 'B-'. The Short-Term Local-Currency IDR has been
downgraded to 'RD' from 'C' following the exchange of treasury
bills held by the central bank and subsequently upgraded to 'C' in
line with the Sovereign Rating Criteria, as Fitch believes the
local-currency debt exchange has now been completed.
*********
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 ***