/raid1/www/Hosts/bankrupt/TCRAP_Public/241002.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, October 2, 2024, Vol. 27, No. 198
Headlines
A U S T R A L I A
ALLCO FINANCE: AUD704MM Bank Debt Trades at 94% Discount
AQUA STAR: Second Creditors' Meeting Set for Oct. 7
COCOS ISLANDS: Cor Cordis Appointed as Voluntary Administrators
FORMQUIP CAPITAL: Second Creditors' Meeting Set for Oct. 7
HAPI ONE: First Creditors' Meeting Set for Oct. 9
LIAGANA PTY: Second Creditors' Meeting Set for Oct. 8
METRO FINANCE 2024-1: Moody's Assigns B2 Rating to AUD1.2MM F Notes
MOSAIC BRANDS: Closes 200 Stores, Axes Five Fashion Brands
NEWCASTLE COAL: S&P Ups Junior Debt Long-Term Issue Rating to 'BB+'
ORION TRUST 2024-1: S&P Assigns Prelim B(sf) Rating to Cl. F Notes
VITAL INGREDIENT: First Creditors' Meeting Set for Oct. 9
C H I N A
CHINA HONGQIAO: Moody's Affirms 'Ba3' CFR, Alters Outlook to Stable
ZW DATA: Implements 1-for-4 Reverse Stock Split
I N D I A
A.V.R.N. HOTELS: CRISIL Keeps B- Debt Ratings in Not Cooperating
AARTI EXTRACTIONS: CRISIL Keeps B Debt Ratings in Not Cooperating
AARTI TRADERS: CRISIL Keeps D Debt Ratings in Not Cooperating
AARVEE INT'L: CRISIL Keeps D Debt Ratings in Not Cooperating
ALAYNA INDUSTRIES: CRISIL Keeps D Debt Ratings in Not Cooperating
AMRITESH AGRO: CRISIL Lowers Rating on INR6cr Cash Loan to B
ANAGHA LAXMI: CRISIL Keeps B Debt Rating in Not Cooperating
APEX HEALTHCARE: CRISIL Keeps B+ Debt Ratings in Not Cooperating
APOLLO ENTERPRISES: CRISIL Keeps C Ratings in Not Cooperating
ARUNACHALA TRADING: CRISIL Keeps D Ratings in Not Cooperating
ASHOKA MANUFACTURING: CRISIL Keeps D Ratings in Not Cooperating
ASUTI TRADING: CRISIL Keeps D Debt Ratings in Not Cooperating
AURO MIRRA: CRISIL Keeps B Debt Ratings in Not Cooperating
AUTOCREATES SERVICES: CRISIL Keeps D Rating in Not Cooperating
BAJRANG COTTON: CRISIL Keeps B Debt Ratings in Not Cooperating
BALDEO METALS: CRISIL Keeps D Debt Ratings in Not Cooperating
BANSAL RICE: CRISIL Keeps D Debt Ratings in Not Cooperating
FUTURE LIFESTYLE: Lenders Approve Resolution Plan of Space Mantra
JET AIRWAYS: JKC Has Not Met Takeover Terms, SBI Tells SC
JYOTI THREADS: CRISIL Withdraws B Rating on INR9cr Cash Loan
MJ GRAIN: CRISIL Lowers Rating on INR15.69cr Cash Loan to B+
MODICON PRIVATE: CRISIL Withdraws B+ Rating on INR15.5cr Cash Loan
SHIV NARAIN: CRISIL Lowers Rating on INR11cr Cash Loan to D
SHUBH MANGAL: CRISIL Lowers Rating on INR5cr LT Loan to D
SUBHLENE FABRICS: CRISIL Lowers Rating on INR9.5cr Loan to D
SUPER SHOES: CRISIL Keeps B Debt Ratings in Not Cooperating
VED FOUNDATION: CRISIL Keeps B Debt Ratings in Not Cooperating
YUVRAJ BUILDCON: CRISIL Keeps B+ Debt Rating in Not Cooperating
M A L A Y S I A
BINTAI KINDEN: Proposes Regularisation Plan to Exit PN17 Status
CAPITAL A: Can Exit PN17 Sans Branding Biz Carve-Out, CEO Says
N E W Z E A L A N D
AMAA & KASH: Creditors' Proofs of Debt Due on Oct. 21
ASHLEY ALLEN: Court to Hear Wind-Up Petition on Oct. 18
MOA BUILDERS: BDO Tauranga Appointed as Liquidators
SC HOLDINGS: Court to Hear Wind-Up Petition on Oct. 7
T S BUILDING: Waterstone Insolvency Appointed as Receivers
S I N G A P O R E
ASIA POWER: Commences Wind-Up Proceedings
FOODSTUFFS SUPPLY: Court to Hear Wind-Up Petition on Oct. 18
GRACEWOOD PETROLEUM: Commences Wind-Up Proceedings
MAXEON SOLAR: Issues 829.2 Million Ordinary Shares for $100 Million
MR. DONER: Court to Hear Wind-Up Petition on Oct. 18
SPORTIVO WORKS: Court Enters Wind-Up Order
S O U T H K O R E A
QOO10: Prosecutors Question CEO Over e-commerce Insolvency
T H A I L A N D
THAI AIRWAYS: Plans US$1.3 Billion Share Sale to Exit Debt Revamp
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A U S T R A L I A
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ALLCO FINANCE: AUD704MM Bank Debt Trades at 94% Discount
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Participations in a syndicated loan under which Allco Finance Group
Ltd is a borrower were trading in the secondary market around 5.6
cents-on-the-dollar during the week ended Friday, Sept. 27, 2024,
according to Bloomberg's Evaluated Pricing service data.
The AUD704 million Term loan facility is scheduled to mature on
September 30, 2009. About AUD666.7 million of the loan is withdrawn
and outstanding.
Allco Financial Group was a fully integrated global financial
services business headquartered in Sydney, Australia. The company
is in liquidation after previously being in administrative
receivership. The Company's country of domicile is Australia.
AQUA STAR: Second Creditors' Meeting Set for Oct. 7
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A second meeting of creditors in the proceedings of Aqua Star Pty
Ltd has been set for Oct. 7, 2024 at 11:00 a.m. via online video
conference.
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 Oct. 4, 2024 at 5:00 p.m.
Daniel Peter Juratowitch and Shaun Matthews of Cor Cordis were
appointed as administrators of the company on May 23, 2024.
COCOS ISLANDS: Cor Cordis Appointed as Voluntary Administrators
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Jeremy Nipps and Thomas Birch, of restructuring advisory firm Cor
Cordis, have been appointed Voluntary Administrators of Cocos
Islands Co-operative Society Limited on Sept. 25, 2024.
Established in 1978, the Cocos Islands Co-operative Society is
owned by Cocos Malay Muslim community members and serves as the
largest employer within the Cocos (Keeling) Islands. The Co-op
provides logistics, hospitality, retail, and specialist contract
services to its community.
Due to current economic challenges, the Directors have determined
that in the best interests of the Co-op, its members, its
stakeholders, and the broader community that it serves, the
appointment of Administrators was required with a view to
restructuring its financial affairs and ensuring its continued
operation into the future for the benefit of those parties.
On behalf of the Administrators, Jeremy Nipps stated, "We've
commenced an urgent review of the Co-op's financial position and
have held preliminary discussions with key parties to ensure we can
stabilise operations and provide the best opportunity to develop a
proposal to restructure the Co-op. There are no changes to the
Co-op's day-to-day operations, and all its businesses will continue
to operate as usual until further notice. We will update all
stakeholders as we work through the voluntary administration
process."
While the Co-op's businesses will continue operating normally and
the Administrators and their team will strive to minimise
disruptions, some operational adjustments may be necessary to
maintain full-service delivery.
FORMQUIP CAPITAL: Second Creditors' Meeting Set for Oct. 7
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A second meeting of creditors in the proceedings of Formquip
Capital Group Pty Ltd has been set for Oct. 7, 2024 at 2:00 p.m. at
the offices of Beacon Advisory at Level 21, 459 Collins Street in
Melbourne.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Oct. 4, 2024 at 4:00 p.m.
Anthony Lane of Beacon Advisory was appointed as administrator of
the company on Sept. 3, 2024.
HAPI ONE: First Creditors' Meeting Set for Oct. 9
-------------------------------------------------
A first meeting of the creditors in the proceedings of Hapi One Aus
Pty Ltd will be held on Oct. 9, 2024 at 10:00 a.m. via
teleconference from the offices of KPT Restructuring at Suite 1
Level 20, 20 Bond Street in Sydney.
Jason Tang and Ozem Kassem of KPT Restructuring were appointed as
administrators of the company on Sept. 26, 2024.
LIAGANA PTY: Second Creditors' Meeting Set for Oct. 8
-----------------------------------------------------
A second meeting of creditors in the proceedings of Liagana Pty Ltd
has been set for Oct. 8, 2024 at 11:00 a.m. at the offices of
Clifton Hall at Level 3, 431 King William Street in Adelaide and
via virtual meeting technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Oct. 4 2024 at 4:00 p.m.
Anna Agostino and Daniel Lopresti of Clifton Hall were appointed as
administrators of the company on Sept. 2, 2024.
METRO FINANCE 2024-1: Moody's Assigns B2 Rating to AUD1.2MM F Notes
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Moody's Ratings has assigned definitive ratings to notes issued by
Perpetual Corporate Trust Limited in its capacity as trustee of
Metro Finance 2024-1 Trust.
Issuer: Perpetual Corporate Trust Limited in its capacity as
trustee of Metro Finance 2024-1 Trust
AUD523.8 million Class A Notes, Assigned Aaa (sf)
AUD28.8 million Class B Notes, Assigned Aa2 (sf)
AUD17.4 million Class C Notes, Assigned A2 (sf)
AUD7.2 million Class D Notes, Assigned Baa2 (sf)
AUD15.0 million Class E Notes, Assigned Ba2 (sf)
AUD1.2 million Class F Notes, Assigned B2 (sf)
The AUD3.3 million Class G1 Notes and AUD3.3 million Class G2 Notes
are not rated by us.
Metro Finance 2024-1 Trust is a static cash securitisation of a
portfolio of Australian prime commercial auto and equipment loans
and leases, and novated leases secured by motor vehicles originated
by Metro Finance Pty Limited (Metro Finance, unrated). Metro
Finance was established in 2011 as a commercial auto and equipment
lender. It targets prime borrowers for auto and equipment assets in
low volatility industries. Metro Finance originates its lending
through the commercial auto and equipment broker and aggregator
industry nationally. This is Metro Finance's first auto and
equipment asset backed securitisation for 2024.
RATINGS RATIONALE
The definitive ratings take into account, among other factors, (1)
Moody's evaluation of the underlying receivables and their expected
performance, (2) an evaluation of the capital structure and credit
enhancement provided to the notes, (3) the availability of excess
spread over the life of the transaction, (4) the liquidity facility
in the amount of 2.0% of the rated notes' balance, subject to a
floor of AUD1,186,800, (5) the legal structure, (6) the experience
of Metro Finance as servicer, and (7) the presence of AMAL Asset
Management Limited (AMAL, unrated) as the back-up servicer.
According to Moody's analysis, the transaction benefits from strong
historical performance data which compares favourably to other
originators of commercial auto and equipment loans and leases. The
key challenge in the transaction is the inclusion of around 69.1%
of receivables extended to prime commercial obligors on a
no-income-verification basis and around 47.2% of receivables
requiring a balloon payment at the end of the receivable term.
Loans with a balloon payment are subject to higher refinancing risk
and, consequently, default risk. Moody's have incorporated an
additional stress into Moody's default assumptions to account for
this.
Moody's portfolio credit enhancement ("PCE") — representing the
loss that Moody's expect the portfolio to suffer in the event of a
severe recession scenario — is 14.0%. Moody's mean expected
default rate for this transaction is 2.15% and the assumed recovery
rate is 35.0%. Expected defaults, recoveries and PCE are parameters
used by us to calibrate Moody's lognormal portfolio loss
distribution curve and to associate a probability with each
potential future loss scenario in the cash flow model to rate auto
ABS.
Key transactional features are as follows:
-- Principal collections will be at first distributed
sequentially. Once the step down conditions are satisfied, all
notes may participate in proportional principal collections
distribution. The step down conditions include, among others,
subordination to the Class A notes of at least 1.5 times the
initial Class A subordination, no charge offs on any of the notes
and average arrears greater than 90 days not exceeding 4.0% of the
aggregate loan amount. Principal pay-down will revert to sequential
once the aggregate invested amount of the notes is less than 20.0%
of the aggregate invested amount of the notes at closing, or on or
after the payment date in February 2028.
-- A swap provided by National Australia Bank Limited
(Aa2/P-1/Aa1(cr)/P-1(cr)) will hedge the interest rate mismatch
between the fixed rate assets and the floating rate liabilities.
The notional balance of the swap will follow a schedule based on
the repayment profile of the assets, assuming a 9.0% prepayment
rate.
-- AMAL is the back-up servicer. If Metro Finance is terminated as
servicer, AMAL will take over the servicing role in accordance with
the standby servicing deed and its back-up servicing plan.
Key pool features are as follows:
-- 69.1% of the receivables were extended to prime commercial
obligors on a no-income verification basis, referred to as
"streamlined". This streamlined product allows obligors who meet
certain stringent requirements to access the loan without providing
financial statements.
-- 47.2% of the receivables are loans with a balloon payment at
the end of the receivable term. The aggregate balloon exposure as a
percentage of current portfolio balance is 19.2%.
-- The weighted average interest rate of the portfolio is 7.6%.
-- The weighted average remaining term of the portfolio is 45.4
months. The weighted average seasoning of the initial portfolio is
11.3 months.
Methodology Underlying the Rating Action:
The principal methodology used in these ratings was "Moody's Global
Approach to Rating Auto Loan- and Lease-Backed ABS" published in
August 2024.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that could lead to an upgrade of the notes include a rapid
build-up of credit enhancement due to sequential amortisation or
better-than-expected collateral performance. The Australian job
market is a primary driver of performance.
Factors that could lead to a downgrade of the notes is
worse-than-expected collateral performance, poor servicing, error
on the part of transaction parties, a deterioration in the credit
quality of transaction counterparties, a lack of transactional
governance, or fraud.
MOSAIC BRANDS: Closes 200 Stores, Axes Five Fashion Brands
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News.com.au reports that one of Australia's biggest fashion
retailers will close more than 200 stores and shut down five of its
brands as it struggles financially.
News.com.au relates that Mosaic Brands, an ASX-listed company,
announced the axing of its fashion outlets Rockmans, Autograph,
Crossroads, W.Lane and BeMe brands, including all stores and
websites. It is unclear how many jobs will be affected at this
stage.
The brands Rockmans, Autograph and W.Lane have more than 200 stores
across Australia, Mosaic Brands' 2023 annual report said.
The company currently employs 4,000 staff and has approximately 700
stores around Australia.
It comes at a torrid time for the retailer which already closed
hundreds of stores last year, while the company has also been
suspended from trading on the ASX after it missed a key deadline
for reporting its annual results.
According to news.com.au, Mosaic CEO Erica Berchtold said the group
would cut its brand portfolio to drive simplification across the
business and focusing resources.
"Mosaic will wind down five brands which have become marginal and
non-core, allowing us to focus on five core growth brands,"
news.com.au quotes Ms. Berchtold as saying. "Each of those core
brands will have a clearly differentiated market proposition,
target customer, price point and product range."
Alarm bells had already been sounded for the major Australian
retailer after it announced a trading halt in August and revealed
it had engaged Deloitte to advise on "refinancing considerations".
Mosaic Brands said in its announcement that it would turn its focus
on investing in its other fashion brands including Millers, Noni B,
Rivers and Katies, along with a stand-alone online Mosaic
marketplace, news.com.au relays.
"Whilst the operational details of the rationalisation plan,
including store closures, continue to be worked through, we will
seek to minimise the impact on our team, including where possible
reassigning impacted team members into roles within the five core
brands," added Ms Berchtold, notes the report.
Queensland University of Technology Business School retail expert
Professor Gary Mortimer had previously flagged that Mosaic Brands
were likely to close a couple of hundred stores and axe some of its
brands after its financial woes emerged last month, adds
news.com.au.
He had warned that the likes of Millers, Katies and Noni B,
alongside it's other fashion outlets, were essentially creating
multiple brands to market to the exact same audience -- middle
aged, middle class woman.
"These women all shop at the same stores so you are cannibalising
your own market. If you walk into a shopping centre, you will find
at least two, if not three, of those brands all competing for the
same customer and that just duplicates and triplicates the cost of
doing business," he told news.com.au last month. "As you are not
only selling the same product to the same consumer but then you
have different brand's costs like staff, advertising and logistics,
so the cost structure doesn't appear to be sound."
Central to the company's strategy to retain existing customers and
attract new ones was continuing to focus on servicing regional
Australia, Ms. Berchtold added.
About Mosaic Brands
Based in Rosebery, Australia, Mosaic Brands Limited (ASX:MOZ) --
https://www.mosaicbrandslimited.com.au/ -- engages in the retail of
women's apparel and accessories in Australia and New Zealand. The
company sells its products under the Millers, Rockmans, Noni B,
Rivers, Katies, Autograph, W. Lane, Crossroads, beme, and Ezibuy
brand names. It operates through a network of 804 stores and online
digital department platforms. The company was formerly known as
Noni B Limited and changed its name to Mosaic Brands Limited in
November 2019.
At June 30, 2023, the Company had AUD317.09 million in total assets
against AUD383.17 million in total liabilities and shareholders'
deficit of $66.08 million.
NEWCASTLE COAL: S&P Ups Junior Debt Long-Term Issue Rating to 'BB+'
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S&P Global Ratings raised its long-term issue rating on the junior
debt to 'BB+' from 'BB', while affirming its 'BBB+' rating on the
senior debt on Australia-based Newcastle Coal Infrastructure Group
Pty Ltd. (NCIG).
The stable outlook on the senior debt reflects NCIG's stable
operations with predictable cash flows.
The positive outlook on the junior debt reflects the potential for
further deleveraging of the senior debt over the next 12-24 months.
This would lead to increased cash flow available for junior debt
service, resulting in a higher minimum DSCR.
NCIG operates a 66 million metric tons per annum (mtpa) coal export
terminal in the Port of Newcastle on the central coast of New South
Wales in Australia. It is fully contracted under ten-year,
evergreen ship-or-pay contracts. NCIG is 100% mutually owned by
most of its shippers.
As of June 30, 2024, NCIG had approximately US$1.5 billion of drawn
senior secured debt. Its parent, NCIG Holdings Pty Ltd. (NCIGH),
had approximately US$460 million of junior debt.
Stable cash flow, given full operational cost passthrough and
capped financial cost passthrough to shippers.
One of two coal export terminals at the Port of Newcastle, with
limited re-contracting risk.
Accelerated debt amortization associated with coal-linked
additional payments and closure of BHP Group Ltd. mines will
benefit DSCR.
Refinancing risk on senior debt instruments.
Long-term exposure to the coal sector.
The rating action factors in NCIG's continued receipts of the coal
price-linked accelerated amortization (CPLAA) payments and the
improvement of our downside resiliency assessment for the company's
junior debt.
NCIG is benefitting from continued high coal prices over the past
12 months. It earned additional payments of US$421 million until
Aug. 31, 2024, since the inception of CPLAA on July 1, 2022. S&P
said, "We expect the company to utilize about 60% of this amount
for the amortization of its senior debt. This will lead to
increased cash flows to service the junior debt. The resulting
improved downside resiliency of the junior debt led to a one-notch
upgrade. We expect the remaining 40% will be reserved to fund
future tax liabilities and for self-insurance. Receipt of CPLAA
revenue has brought forward the project's tax payable date to
fiscal 2025."
S&P said, "We do not factor in additional CPLAA payments beyond the
current and the next quarter, given that these payments are not
legally binding but are based on mutual agreements with the
shippers. That said, continued receipts of payments under CPLAA
beyond those factored into our analysis could see senior debt
amortize faster than we expected--by 2032 (as per management
expectations) as against our base case of 2034. These potential
additional payments can continue to increase the cash flow
available for the junior debt service, further improving its
creditworthiness.
"In addition, Hunter Valley Energy Coal Pty Ltd. (HVEC; a
subsidiary of BHP) has continued to make payments for its portion
(22.89%) of the senior and junior debt, in line with the existing
ship-or-pay contracts after announcing the early closure of its
mine at Mount Arthur by 2030. This is in additional to its regular
toll charges and CPLAA. NCIG has received US$50 million since the
payments began in May 2023. We continue to factor in approximately
equal semi-annual payments until 2030. Although the senior debt
will amortize as and when payments from HVEC are received, the
junior debt amortization starts only from 2027, once the make-whole
conditions on those instruments fall away; until which time the
funds are parked in a reserve account. As on Aug. 31, 2024, this
reserve amounted to US$13 million.
"Our base case continues to factor in higher refinancing margins of
4.5%, and 6.0% in the downside case. We will keep a close watch on
investor interest and participation for refinancing in the coal
sector and may decide to revise the margins upward, depending on
our view of the future cost for this sector.
"We also continue to apply a one-notch negative holistic assessment
for both the senior and junior debt to reflect our longer-term view
of the sector."
Outlook: Stable (For Senior Debt)
S&P said, "The stable outlook on the senior debt reflects our view
that the NCIG terminal will operate with steady predictable cash
flow at a contracted capacity of 66 mtpa for the foreseeable
future. Our view factors in contracted accelerated payments from
the closure of HVEC mines and actual additional charges linked to
higher coal prices."
The rating could come under pressure if:
-- Contracted volumes drop or if the fundamental competitiveness
of the Hunter Valley coal market, including demand and price,
materially declines. Such conditions may lead us to reduce our
expected maximum toll charge;
-- S&P considers that shippers can't be easily replaced;
-- The rating on the weakest bank guarantee provider is 'BBB' or
lower; or
-- NCIG fails to appropriately manage its refinancing exposure
well ahead of time or if S&P believes the future cost of
refinancing has significantly increased for the sector.
A minimum senior DSCR declining below 1.75x could result in us
lowering the rating.
The issue rating is capped by the 'BBB+' minimum rating requirement
on the bank guarantee from shippers.
Outlook: Positive (For Junior Debt)
S&P said, "The positive outlook on the junior debt reflects our
view that the minimum DSCR could improve over the next one to two
years. This will likely be led by using part of CPLAA receipts for
further deleveraging the senior debt, thereby increasing the cash
flow available to service the junior debt.
"We will raise the junior debt rating by one notch if the minimum
DSCR improves to over 1.5x. This can happen if the coal market
conditions remain favorable, enabling NCIG to collect additional
CPLAA payments, and reducing senior debt beyond that factored into
our base case forecasts.
"We will revise the outlook to stable if we believe the additional
amount received under the CPLAA is not sufficient to improve the
junior debt's minimum DSCR to above 1.5x. Further, any adverse
shift in market demand for thermal coal over the longer term or
expectation of higher refinancing costs may lead us to revise the
outlook to stable."
ORION TRUST 2024-1: S&P Assigns Prelim B(sf) Rating to Cl. F Notes
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S&P Global Ratings assigned its preliminary ratings to eight
classes of residential mortgage-backed securities (RMBS) to be
issued by Perpetual Corporate Trust Ltd. as trustee of Orion Trust
2024-1. Orion Trust 2024-1 is a securitization of prime and
nonconforming residential mortgage loans originated by Brighten
Financial Pty Ltd.
The preliminary ratings reflect the following factors.
The credit risk of the underlying collateral portfolio, which
predominantly comprises residential mortgage loans to prime-quality
Australian resident borrowers, and the credit support provided to
each class of notes are commensurate with the ratings assigned.
Credit support is provided by subordination and excess spread, if
any. S&P's assessment of credit risk considers Brighten Financial's
underwriting standards and approval process, and its servicing
quality.
The rated notes can meet timely payment of interest and ultimate
payment of principal under the rating stresses. Key rating factors
are the level of subordination provided, principal draw function,
provision of a liquidity facility, and provision of an
extraordinary expense reserve. S&P's analysis is on the basis that
the notes are fully redeemed via the principal waterfall mechanism
under the transaction documents by their legal final maturity date,
and it assumes the notes are not called at or beyond the
call-option date.
S&P said, "Our ratings also take into account the counterparty
exposure to Westpac Banking Corp. as bank account provider and by
an appropriately rated financial institution (TBD) as liquidity
facility provider. We also have factored into our ratings the legal
structure of the trust, which is established as a special-purpose
entity and meets our criteria for insolvency remoteness.
"We have assessed the servicing and standby servicing arrangements
in this transaction under our "Global Framework For Assessing
Operational Risk In Structured Finance Transactions" criteria,
published Oct. 9, 2014, and concluded that there are no constraints
on the maximum rating that can be assigned to the notes."
Preliminary Ratings Assigned
Orion Trust 2024-1
Class A-S, A$100.00 million: AAA (sf)
Class A-L, A$300.00 million: AAA (sf)
Class A2, A$46.20 million: AAA (sf)
Class B, A$25.70 million: AA (sf)
Class C, A$14.60 million: A (sf)
Class D, A$7.30 million: BBB (sf)
Class E, A$2.50 million: BB (sf)
Class F, A$1.90 million: B (sf)
Class G, A$1.80 million: Not rated
VITAL INGREDIENT: First Creditors' Meeting Set for Oct. 9
---------------------------------------------------------
A first meeting of the creditors in the proceedings of The Vital
Ingredient (Retail) Pty Ltd, Essential Wholesale NSW Pty Ltd, J.S.
& S Weddell Pty. Ltd, Essential Distribution Australia Pty Ltd, and
Essential Franchise Pty Ltd will be held on Oct. 9, 2024 at 11:00
a.m. via virtual meeting technology.
Robert Scott Ditrich, Rebecca Louise Gill, and Craig David Crosbie
of PwC were appointed as administrators of the company on Sept. 26,
2024.
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CHINA HONGQIAO: Moody's Affirms 'Ba3' CFR, Alters Outlook to Stable
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Moody's Ratings has affirmed China Hongqiao Group Limited's Ba3
corporate family rating, and revises its outlook to stable from
negative.
"The outlook change to stable reflects Hongqiao's liquidity
improvement, driven by an increase in its long-term funding and
better cash flow generation. Moody's expect the company will
continue to improve its debt maturity and maintain sufficient
liquidity, so as to provide buffer against market volatility
inherent in the aluminum industry," says Roy Zhang, a Moody's
Ratings Vice President and Senior Analyst.
"The rating affirmation is supported by the company's leading
market position, low debt leverage and good funding access," adds
Zhang.
RATINGS RATIONALE
Hongqiao's Ba3 CFR reflects the company's leading position in the
aluminum industry, long operating history and cost-competitive
production facilities.
These strengths are counterbalanced by the company's exposure to
industry cyclicality and regulatory risks, periodic reliance on
short-term financing due to funding cost considerations and the
risks stemming from its concentrated ownership.
The company's revenue reached RMB141 billion for the 12 months
ended June 2024, up slightly by 5.9% from 2023. It produced 3.2
million tons of aluminum in the first half of 2024, accounting for
about 15% of domestic production or 9% of global production.
Moody's project the company's revenue will remain largely stable
over the next 12-18 months, based on Moody's flat alumina and
aluminum price assumptions. Its EBITDA margin will likely improve
to 27% in 2024 from 20% in 2023 and stay at the same level, based
on Moody's price assumptions.
Its financial leverage, as measured by total debt to EBITDA,
declined to 2.2x as of June 2024, supported by margin recovery.
This leverage level is strong for the company's rating level and
provides a buffer during periods of market uncertainty.
Hongqiao's liquidity is adequate. The company had cash and
cash-like sources of about RMB39.8 billion as of June 2024. This,
together with its projected operating cash flow, is sufficient to
cover its short-term debt and other financial obligations over the
next 12-18 months.
Hongqiao has proactively enhanced its capital structure through
leveraging its sound banking relationships and diversified funding
channels. The company has raised 14 domestic bonds in the first
eight months of 2024, including three-year notes issued in August
2024 at a cost of 2.8% and a syndicated sustainability-linked loan
during the same period.
As a result, its debt due within the next 12 months accounted for
69% of its total reported debt as of June 2024, down from 76% at
the end of 2023. The company will likely continue raising long-term
funding and improving its debt maturity profile.
In addition, the company has the financial flexibility to bolster
its liquidity as needed, including but not limited to reducing its
dividend.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CONSIDERATIONS
Hongqiao is exposed to water management, natural capital, waste and
pollution, health and safety and responsible production risks
associated with its large alumina refinery and aluminum smelting
operations. Its long track record and stable operations partially
temper these risks.
The company plans to relocate 4 million tons of capacity (out of
6.46 million tons in total) to Yunnan province from Shandong
province over time. This transition has so far been smooth. The
strategic move will enable the company to use hydropower as a
primary energy source and reduce its reliance on coal-fired energy,
aligning it with the Chinese government's carbon neutralization
strategy and reducing its regulatory risk exposure and
uncertainties.
Hongqiao is exposed to risks associated with its concentrated
ownership. The presence of its minority shareholder CITIC Group
Corporation tempers these risks.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Moody's could upgrade the rating if Hongqiao maintains sound
corporate governance standards; demonstrates a track record of
maintaining its strong financial profile through the industry cycle
and using free cash flow or equity to fund its growth and debt
repayment; and maintains its solid liquidity profile, with its
cash/short-term debt above 1.2x.
On the other hand, Moody's could downgrade the rating if Hongqiao
fails to improve its capital structure by lowering its dependency
on short-term funding over the next 12-18 months. Specifically, a
downgrade is likely if the company's liquidity profile weakens or
its adjusted debt/EBITDA exceeds 4.0x over a sustained period of
time.
The principal methodology used in this rating was Steel published
in November 2021.
China Hongqiao Group Limited is one of the largest aluminum
manufacturers in China and globally in terms of production volume.
It was founded in 1994 and is headquartered in Zouping, Shandong
Province. The company listed on the Hong Kong Stock Exchange in
March 2011.
As of the end of June 2024, Hongqiao was 64.4% owned by Mr. Zhang
Bo and his family, and 9.0% owned by CITIC Group Corporation. The
company posted a revenue of RMB133.6 billion in 2023.
ZW DATA: Implements 1-for-4 Reverse Stock Split
-----------------------------------------------
ZW Data Action Technologies Inc., an integrated online advertising,
precision marketing, data analytics, and other value-added services
company, announced that its Board of Directors has approved a
reverse stock split of its common stock, par value $0.001 per share
at a ratio of 1-for-4. The Reverse Stock Split took effect on
September 30, 2024, with the shares of the Company to trade on a
post-split basis on Nasdaq under the Company's existing trading
symbol "CNET," on September 30, 2024, upon Nasdaq's approval. The
new CUSIP number following the Reverse Stock Split is 98880R 307.
Under Nevada Revised Statutes Section 78.207, the Company may
decrease its authorized shares of Common Stock and correspondingly
decrease the number of issued and outstanding shares of Common
Stock by resolution adopted by the Board of Directors, without
obtaining the approval of the stockholders. The Reverse Stock Split
will be effected by the Company filing a Certificate of Change
pursuant to NRS Section 78.209 with the Secretary of State of the
State of Nevada. As a result of the filing of the Certificate, the
number of shares of the Company's authorized Common Stock will be
reduced from 50,000,000 shares to 12,500,000 shares and the issued
and outstanding number of shares of the Common Stock will be
correspondingly decreased.
When the Reverse Stock Split becomes effective, the total number of
shares of Common Stock held by each stockholder of the Company will
be converted automatically into the number of shares of Common
Stock equal to (i) the number of issued and outstanding shares of
Common Stock held by each such stockholder immediately prior to the
Reverse Stock Split, divided by (ii) 4, with such resulting number
of shares rounded up to the nearest whole share. The Company will
issue one whole share of the post-Reverse Stock Split Common Stock
to any stockholder who otherwise would have received a fractional
share as a result of the Reverse Stock Split. As a result, no
fractional shares will be issued in connection with the Reverse
Stock Split and no cash or other consideration will be paid in
connection with any fractional shares that would otherwise have
resulted from the Reverse Stock Split.
The Reverse Stock Split has no effect on the par value of the
Company's Common Stock or authorized shares of preferred stock.
Immediately after the Reverse Stock Split, each stockholder's
percentage ownership interest in the Company and proportional
voting power will remain unchanged, except for minor changes and
adjustments that will result from the treatment of fractional
shares. The rights and privileges of the holders of shares of
Common Stock will be substantially unaffected by the Reverse Stock
Split.
The Reverse Stock Split is primarily being effected to regain
compliance with the $1.00 minimum bid price required for continued
listing on The Nasdaq Capital Market under Nasdaq Listing Rule
5550(a)(2).
Stockholders who are holding their shares in electronic form at
brokerage firms do not need to take any action, as the effect of
the Reverse Stock Split will automatically be reflected in their
brokerage accounts. Stockholders holding paper certificates may
(but are not required to) send the certificates to the Company's
transfer agent and registrar, Empire Stock Transfer. Empire Stock
Transfer will issue a new stock certificate reflecting the Reverse
Stock Split to each requesting stockholder.
About ZW Data Action Technologies
Beijing, China-based ZW Data Action Technologies Inc., established
in 2003, is an ecological enterprise that provides digital services
to sales and marketing channels through blockchain, big data, and
precision marketing. ZW Data Action is committed to empowering SMEs
to achieve more efficient and accurate operations and management,
resulting in additional value for clients.
Hong Kong, China-based ARK Pro CPA & Co, the Company's auditor
since 2023, issued a 'going concern' qualification in its report
dated June 28, 2024, citing that the Company has an accumulated
deficit from recurring net losses and significant net operating
cash outflow for the year ended December 31, 2023. All these
factors raise substantial doubt about its ability to continue as a
going concern.
As of June 30, 2024, ZW Data had $10.8 million in total assets,
$5.6 million in total liabilities, and $5.3 million in total
stockholders' equity.
=========
I N D I A
=========
A.V.R.N. HOTELS: CRISIL Keeps B- Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of A.V.R.N.
Hotels Private Limited (AHPL) continue to be 'CRISIL B-/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 18 CRISIL B-/Stable (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 27 CRISIL B-/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with AHPL for
obtaining information through letter and email dated August 12,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AHPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AHPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AHPL continues to be 'CRISIL B-/Stable Issuer Not Cooperating'.
Incorporated in 1992, AHPL operates a three-star hotel under the
brand, Vijay Park. The company's operations are managed by Mr. A
Vijayaraghavan. AHPL is currently constructing hotels in Alandur
and Kolathur in Chennai.
AARTI EXTRACTIONS: CRISIL Keeps B Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Aarti
Extractions Private Limited (AEL; Previously known as Aarti
Extractions Limited) continue to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 11.5 CRISIL B/Stable (Issuer Not
Cooperating)
Standby Line 0.5 CRISIL B/Stable (Issuer Not
of Credit Cooperating)
CRISIL Ratings has been consistently following up with AEL for
obtaining information through letter and email dated August 12,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AEL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AEL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AEL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Established in 1992, AEL, promoted by Mr Dinesh Garg and his
family, extracts and refines rice bran oil at its facility in
Chandauli (Uttar Pradesh). It sells rice bran oil and de-oiled cake
(a by-product), extracts other oils such as sunflower and neem, and
trades in palm oil.
AARTI TRADERS: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Aarti Traders
(AT) continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.5 CRISIL D (Issuer Not
Cooperating)
Proposed Fund- 0.5 CRISIL D (Issuer Not
Based Bank Limits Cooperating)
CRISIL Ratings has been consistently following up with AT for
obtaining information through letter and email dated August 12,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AT, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AT is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of AT
continues to be 'CRISIL D Issuer Not Cooperating'.
Set up in 1992 as a proprietorship firm by Mr Suresh Keswani, AT
manufactures embroidered clothes and also trades in readymade
garments. It is based in Mumbai.
AARVEE INT'L: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Aarvee
International (AI) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 18 CRISIL D (Issuer Not
Cooperating)
Proposed Cash 2 CRISIL D (Issuer Not
Credit Limit Cooperating)
CRISIL Ratings has been consistently following up with AI for
obtaining information through letter and email dated August 12,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AI is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of AI
continues to be 'CRISIL D Issuer Not Cooperating'.
AI was established in 2012 by the Sorthaiya family based in Rajkot
(Gujarat). The firm trades in agri-based commodities such as
soyabean meal, rapeseed and groundnut extraction meal, and wheat.
ALAYNA INDUSTRIES: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Alayna
Industries (AI) continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.4 CRISIL D (Issuer Not
Cooperating)
Funded Interest 0.41 CRISIL D (Issuer Not
Term Loan Cooperating)
Proposed Long Term 1.86 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 2.33 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with AI for
obtaining information through letter and email dated August 12,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AI is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of AI
continues to be 'CRISIL D Issuer Not Cooperating'.
AI is owned & managed by Mr Gaurav Pachouri and Ms Nishita
Pachouri.AI operate a rice mill . Its manufacturing facility is
located in Mandideep, Bhopal, Madhya Pradesh.
AMRITESH AGRO: CRISIL Lowers Rating on INR6cr Cash Loan to B
------------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of
Amritesh Agro Products Private Limited (AAPPL) to 'CRISIL B/Stable
Issuer Not Cooperating' from 'CRISIL BB-/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER
NOT COOPERATING)
Long Term Loan 0.48 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER
NOT COOPERATING)
Proposed Long Term 4.29 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER
NOT COOPERATING)
Rupee Term Loan 1.73 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER
NOT COOPERATING)
CRISIL Ratings has been consistently following up with AAPPL for
obtaining information through letter and email dated August 12,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AAPPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AAPPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AAPPL Revised to 'CRISIL B/Stable Issuer Not Cooperating' from
'CRISIL BB-/Stable Issuer Not Cooperating'.
AAPPL, incorporated in 2014, mills dal and processes besan and has
capacity of 9 tonne per hour at Chandramandih in Jamui district of
Bihar. Daily operations are managed by Mr. Amritesh Singh, Ms.
Priti Singh and Mr. Anil Prasad Singh.
ANAGHA LAXMI: CRISIL Keeps B Debt Rating in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Anagha Laxmi
Shopping Mall (ALSM) continues to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 16 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with ALSM for
obtaining information through letter and email dated August 12,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of ALSM, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ALSM
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
ALSM continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
ALSM was formed as a proprietary concern in December 2020. The firm
has plans to open a shopping mall for men, women and kids' wear at
Nizamabad (Telangana). Through an e-auction, the proprietor took
possession of the already constructed property of Anagha Laxmi
Shopping Mall. The mall is likely to commence operations from April
2021. It is owned and managed by Ms. Haridas Latha.
APEX HEALTHCARE: CRISIL Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Apex
Healthcare Limited (AHL) continue to be 'CRISIL B+/Stable Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.5 CRISIL B+/Stable (Issuer Not
Cooperating)
Cash Credit 5 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Cash 2.89 CRISIL B+/Stable (Issuer Not
Credit Limit Cooperating)
CRISIL Ratings has been consistently following up with AHL for
obtaining information through letter and email dated August 12,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AHL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AHL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AHL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
AHL was established as a partnership firm (Apex Laboratories) in
2003, by Mr Umesh Mendapara and his cousins, Mr. Ramesh Gabani and
Dr. Chandu Gabani. In January 2007, the firm was reconstituted as a
public-limited company (closely held) with the current name. The
company manufactures bulk drugs, at its unit at Ankleshwar
(Gujarat), which has a capacity of 75 tonnes per annum, with around
70% capacity utilisation.
APOLLO ENTERPRISES: CRISIL Keeps C Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Apollo
Enterprises (AE) continue to be 'CRISIL C Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.5 CRISIL C (Issuer Not
Cooperating)
Cash Credit/
Overdraft facility 1 CRISIL C (Issuer Not
Cooperating)
Rupee Term Loan 3.5 CRISIL C (Issuer Not
Cooperating)
Rupee Term Loan 3 CRISIL C (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with AE for
obtaining information through letter and email dated August 12,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AE, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AE is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of AE
continues to be 'CRISIL C Issuer Not Cooperating'.
AE was incorporated in 2005 as a partnership firm by Mr. Avinash
Virkar, Mr. Ankur Agarwal and Mr. Pawan Agarwal. The firm is in the
business of providing crane rental services.
ARUNACHALA TRADING: CRISIL Keeps D Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Arunachala
Trading Company (ATC) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 4 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with ATC for
obtaining information through letter and email dated August 12,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of ATC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ATC
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
ATC continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Set up in 2015 as a partnership entity, ATC trades in paper and
board. The firm, based in Sivakasi (Tamil Nadu), deals in two major
categories of paper - printing and writing Paper and copier paper.
The operations are managed by Mr. Chiranjeevi Rathnam.
ASHOKA MANUFACTURING: CRISIL Keeps D Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Ashoka
Manufacturing Private Limited (AML) continue to be 'CRISIL D/CRISIL
D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 3.5 CRISIL D (Issuer Not
Cooperating)
Cash Credit 5.85 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 0.9 CRISIL D (Issuer Not
Cooperating)
Proposed Fund- 0.66 CRISIL D (Issuer Not
Based Bank Limits Cooperating)
Term Loan 1.24 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with AML for
obtaining information through letter and email dated August 12,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AML, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AML
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AML continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Incorporated in 1997, AML manufactures and supplies spare parts
used for defence arms and ammunition. The company is promoted by
Kolkata-based Mr Anil Patodia and family.
ASUTI TRADING: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Asuti Trading
Private Limited (ATPL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Letter of Credit 20 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 20 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with ATPL for
obtaining information through letter and email dated August 12,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of ATPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ATPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
ATPL continues to be 'CRISIL D Issuer Not Cooperating'.
ATPL, based in Mumbai, is owned by Mr. Sidharth M Bagrecha, Mr.
Binod Kumar Agarwal and Mr. Vimal Agarwal. The company trades in
steel and iron products, such as hot-rolled coils, cold-rolled
coils, sheets, sponge iron fines/lumps, and pig iron.
AURO MIRRA: CRISIL Keeps B Debt Ratings in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Auro Mirra
Detective Agency (AMDA) continue to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Overdraft 9 CRISIL B/Stable (Issuer Not
Facility Cooperating)
Secured Overdraft 2 CRISIL B/Stable (Issuer Not
Facility Cooperating)
CRISIL Ratings has been consistently following up with AMDA for
obtaining information through letter and email dated August 12,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AMDA, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AMDA
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AMDA continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
AMDA is a sole proprietorship of of Mr.Srinivasen Ramesh, set up in
2012 in Dindigal, Tamil Nadu. It provides services such as
temporary staffing and skilled employees on contractual basis.
AUTOCREATES SERVICES: CRISIL Keeps D Rating in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Autocreates
Services Private Limited (ASPL) continues to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Lease Rental 15 CRISIL D (Issuer Not
Discounting Loan Cooperating)
CRISIL Ratings has been consistently following up with ASPL for
obtaining information through letter and email dated August 12,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of ASPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ASPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
ASPL continues to be 'CRISIL D Issuer Not Cooperating'.
Incorporated in 2006, ASPL is a subsidiary of AIPL, which has 90%
stake in ASPL; while the remaining is equally owned by promoters of
AIPL, Mr Gurinder Singh Arora and Ms Tarvinder Kaur Arora. ASPL has
a dedicated parking yard in Panvel (Maharashtra), on the
Mumbai-Pune highway.
BAJRANG COTTON: CRISIL Keeps B Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Bajrang
Cotton (BC) continue to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 1.66 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with BC for
obtaining information through letter and email dated August 12,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of BC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on BC is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of BC
continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Set up in 2006, BC gins and presses cotton. The firm's plant is in
Amreli (Gujarat).
BALDEO METALS: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Baldeo Metals
Private Limited (BMPL) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 4 CRISIL D (Issuer Not
Cooperating)
Cash Credit 5 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 30 CRISIL D (Issuer Not
Cooperating)
Proposed Fund- 2 CRISIL D (Issuer Not
Based Bank Limits Cooperating)
CRISIL Ratings has been consistently following up with BMPL for
obtaining information through letter and email dated August 12,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of BMPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on BMPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
BMPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Set up in 1990 by Mr Shyam Bihari Goyal as a proprietorship, Baldeo
Metal Works, the firm got reconstituted into a private-limited
company with its current name in 1997. BMPL is based in Delhi and
trades in non-ferrous metals, particularly copper; it also
manufactures ingots and draw wires, with capacity of 5 million
tonne per day. Around 95% of its revenue is derived from the
trading activity, which remains the key focus area of the company;
the manufacturing facility is used sparsely.
BANSAL RICE: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Bansal Rice
Mills - Muktsar (BRM) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL D (Issuer Not
Cooperating)
Term Loan 2 CRISIL D (Issuer Not
Cooperating)
Warehouse Financing 4 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with BRM for
obtaining information through letter and email dated August 12,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of BRM, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on BRM
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
BRM continues to be 'CRISIL D Issuer Not Cooperating'.
Set up as a proprietorship firm in 2009 by Mr. Sanjiv Kumar and
reconstituted as a partnership firm in 2014, BRM processes basmati
and non-basmati rice for export houses and also sells under its own
brand, Barkat Rice. Production facilities are in Muktsar, Punjab.
FUTURE LIFESTYLE: Lenders Approve Resolution Plan of Space Mantra
-----------------------------------------------------------------
The Economic Times reports that the lenders of Future Lifestyle
Fashions Ltd, going through insolvency resolution, have approved
the bid from a consortium of Space Mantra and Sandeep Gupta &
Shalini Gupta. The Committee of Creditors (CoC) of Future Lifestyle
Fashions Ltd (FLFL) has voted in favour of the resolution plan
submitted by the consortium, according to a regulatory filing from
the company.
"We hereby inform and place on record that the resolution plan
submitted by consortium of Space Mantra Pvt Ltd and Sandeep Gupta &
Shalini Gupta is approved by the Committee of Creditors of FLFL on
September 27, 2024," it said.
According to ET, the company has not shared the details of the plan
approved by the lenders. It also informed that the Corporate
Insolvency Resolution Process (CIRP) period for FLFL ended on
August 26, 2024.
The Resolution Professional (RP) of the company filed an
application before the National Company Law Tribunal on August 24,
2024, seeking extension of the CIRP period, ET says.
"The CIRP proceedings of FLFL is therefore subject to the Hon'ble
NCLT passing an extension order in the application filed by the RP
on the 24th August 2024," it said.
As per Section 12(1) of the Insolvency & Bankruptcy Code (IBC),
CIRP should be completed within 180 days.
However, this period can be extended up to 330 days, including
litigation period, failing which the corporate debtor is sent for
liquidation, ET notes.
FLFL had in-house retail chains Central and Brand Factory. It
operated exclusive brand outlets (EBOs) and other multi-brand
outlets (MBOs) of nearly a dozen apparel labels, including Lee
Copper, Champion, aLL, Indigo Nation, Giovani, John Miller,
Scullers, Converse and Urbana in its portfolio.
State Bank of India leads the CoC of FLFL with a 22.51 per cent
voting share. It had an admitted loan of INR476.59 crore.
In June 2023, FLFL had informed that it had received a total claim
of INR2,155.53 crore from 12 financial creditors in CIRP initiated
against the company, ET discloses.
About Future Lifestyle
Future Lifestyle Fashions Ltd (FLFL) is the apparel retail venture
of the Future group. It was established by combining apparel retail
formats and fashion brands that were demerged from Pantaloon Retail
India Ltd and Future Ventures India Ltd, respectively. The company
has a portfolio of brands that cover a range of fashion categories,
including apparel and footwear. It has Central and Brand Factory
stores, along with exclusive Brand Factory outlets. Central
operates primarily in the premium apparel, footwear, watches and
fashion accessories segment, while Brand Factory operates mainly in
the off-price apparel retailing (discount-based) segment.
On May 4, 2023, the Mumbai bench of the National Company Law
Tribunal (NCLT) directed to initiate the Corporate Insolvency
Resolution Process (CIRP) against FLFL, admitting a petition from
the Bank of India.
JET AIRWAYS: JKC Has Not Met Takeover Terms, SBI Tells SC
---------------------------------------------------------
Livemint.com reports that the lenders of Jet Airways informed the
Supreme Court that the Jalan-Kalrock Consortium (JKC) has not
released the full first tranche of a INR350-crore deposit - a key
condition for transferring the bankrupt airline's ownership.
Livemint.com relates that the lenders, led by the State Bank of
India, also stated that the consortium has not complied with any
conditions necessary for ownership transfer, making a case for the
bankruptcy resolution plan to be set aside, which could potentially
result in Jet Airways's liquidation.
Jet Airways, founded by Naresh Goyal, went bankrupt in April 2019
when it suspended all flight operations due to financial woes.
The Jalan-Kalrock Consortium comprises Murari Lal Jalan, a
UAE-based non-resident Indian, and Florian Fritsch, who holds
shares in Jet Airways through his Cayman Islands-based investment
holding company, Kalrock Capital Partners Ltd. The National
Companies Law Tribunal approved the consortium's resolution plan
for Jet Airways on June 22, 2021.
At the Supreme Court on Sept. 26, Jet Airways's lenders argued that
JKC was in breach of a previous Supreme Court directive requiring
the consortium to deposit INR150 crore to complete the first
tranche of INR350 crore, according to Livemint.com.
Livemint.com says Jet Airways's lenders also informed the Supreme
Court that they had only received INR200 crore out of the INR4,783
crore promised to them as per the resolution plan, which is to be
paid over 5 years, and that they were incurring losses of INR22
crore monthly while maintaining the airline and its assets.
Furthermore, they stated that Jet Airways owes around INR7,500
crore to lenders.
"This is a case of gross abuse of the (Insolvency and Bankruptcy
Code) process. This is a definite moment—enough is enough. The
court must make it clear that the IBC is not for abuse but a
genuine facilitator for takeovers. Operators like this cannot come
and play with the courts," stated additional solicitor general N.
Venkataraman, representing Jet Airways's lenders.
According to Livemint.com, the lenders reiterated that JKC had not
fulfilled various preconditions necessary to take over Jet Airways,
including obtain an air operator certificate (AOC), approval from
the Directorate General of Civil Aviation, slot allotment,
bilateral rights, and international traffic rights. Additionally,
JKC has failed to pay dues amounting to about INR272 crore for
provident fund and gratuity to workers, they said.
The lenders added that JKC had not released three Dubai-based
immovable properties offered as security for the INR150 crore
performance bank guarantee, Livemint.com relays.
In response, JKC maintained its argument that the lenders were
stalling its takeover of the airline, Livemint.com relays. The
consortium had announced in September last year that it had infused
INR350 crore equity into Jet Airways and fulfilled its financial
commitment as per the court-approved resolution plan.
The Supreme Court continued hearing the case on October 1.
The bench, led by Chief Justice D.Y. Chandrachud, was hearing the
lenders' plea against the National Company Law Appellate Tribunal's
ruling in March upholding the handover of Jet Airways's ownership
to JKC by approving its resolution plan, adds Livemint.com.
About Jet Airways
Based in Mumbai, India, Jet Airways (India) Limited was one of
India's top airlines founded by Naresh Goyal. It provided
passenger and cargo air transportation services as well aircraft
leasing services. It operated flights to 66 destinations in India
and international countries.
Jet Airways on April 17, 2019, halted all flight operations after
its lenders rejected its plea for emergency funds.
On June 20, 2019, the National Company Law Tribunal (NCLT), Mumbai
Bench, accepted an insolvency petition against Jet Airways filed by
its creditors as they attempt to recover some of their dues.
Ashish Chhawchharia of Grant Thornton India has been named as the
resolution professional in the case. Law firm Cyril Amarchand
Mangaldas represented the interests of the lenders' consortium,
according to a Reuters report.
Creditors have filed claims worth INR30,907 crore, according to
Financial Express. The RP has so far admitted claims worth over
INR14,000 crore.
In October 2020, the airline's Committee of Creditors (CoC)
approved the revival plan submitted by the consortium of
Dubai-based Murari Lal Jalan and the UK's Kalrock Capital.
In 2021, the NCLT approved the Jalan-Kalrock consortium's
resolution plan for the troubled carrier.
JYOTI THREADS: CRISIL Withdraws B Rating on INR9cr Cash Loan
------------------------------------------------------------
CRISIL Ratings has withdrawn its rating on the bank facilities of
Jyoti Threads India Limited (JTIL) on the request of the company
and after receiving no objection certificate from the bank. The
rating action is in-line with CRISIL Rating's policy on withdrawal
of its rating on bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9 CRISIL B/Stable/Issuer Not
Cooperating (Withdrawn)
Cash Credit 4 CRISIL B/Stable/Issuer Not
Cooperating (Withdrawn)
Proposed Fund- 3 CRISIL B/Stable/Issuer Not
Based Bank Limits Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with JTIL for
obtaining information through letter and email dated February 15,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of JTIL. This restricts CRISIL
Ratings' ability to take a forward looking view on the credit
quality of the entity. CRISIL Ratings believes that rating action
on JTIL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, CRISIL Ratings has
Continued the ratings on the bank facilities of JTIL to 'CRISIL
B/Stable Issuer not cooperating'.
JTIL, incorporated in 2007, is a Samana (Punjab)-based company that
undertakes open-ended cotton yarn spinning (count: 8s to 26s). Mr
Manish Singla, his brother, Mr Ashok Singla, and their father, Mr
Madan Lal Singla, are the promoters.
MJ GRAIN: CRISIL Lowers Rating on INR15.69cr Cash Loan to B+
------------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
MJ Grain Products Private Limited (MJGPPL) to 'CRISIL
B+/Stable/CRISIL A4' from 'CRISIL BB-/Stable/CRISIL A4+'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.5 CRISIL A4 (Downgraded from
'CRISIL A4+')
Cash Credit 15.69 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Term Loan 2 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
The downgrade reflects weakening of the business risk profile of
the company, with decline in profitability due to inability to pass
on the raw material price increase to the end customers market by
lower EBITDA margin of around 2% for fiscal 2024, though the
revenue has improved to over INR141 crore in the fiscal 2024. The
financial profile has modest marked by netwoth of INR17.3 crore
yielding a gearing of around 1.5 times and total outside
liabilities to adjusted networth (TOL/ANW) of 1.15 times as of
March 31, 2024. Improvement in profitability of the company
resulting in improvement in liquidity profile with higher net cash
accruals will remain monitorable.
The rating reflects the extensive experience of the proprietor in
the poultry industry and the moderate working capital cycle and
average debt protection metrics of the firm. These strengths are
partially offset by its exposure to risks inherent to the poultry
industry, susceptibility of margin to volatility in raw material
prices and the moderately leveraged capital structure.
Analytical Approach
Unsecured loan of INR15.73 crore as on March 31, 2024, from the
promoters has been treated as neither debt nor equity as the loan
is expected to remain in the business over the medium term.
Key Rating Drivers & Detailed Description
Weaknesses:
* Exposure to volatility in raw material prices and uneven
monsoons: Availability and prices of paddy depend on monsoons and
irrigation facilities. Thus, the company faces the risk of raw
material shortage because of unfavourable climatic conditions.
Moreover, intense competition limits the scope for passing on any
rise in input prices to customers.
* Moderate financial risk profile: The company has moderate capital
structure with modest networth estimated to be at INR17.3 Cr as on
March 31, 2024 yielding a gearing of around 1.56 times and TOL/TNW
of 1.15 times as on March 31, 2024. The debt protection metrics
remain moderate with interest cover and NCAAD of 1.2 times and 0.02
time as of March 31, 2024. The improvement financial profile will
remain a key monitorable in absence of any major debt funded
capex.
Strengths:
* Extensive experience of the promoters: Presence of more than a
decade in the rice milling business has enabled the promoters to
establish a diversified clientele and develop in-depth
understanding of local market dynamics.
* Moderate scale of operations: The scale of operations of the
company has remained moderate at over INR140 crore for FY24 against
INR128 crore for FY23. The scale of operations is expected to
remain stable over the medium with stable capacity utilization of
moderate trading activity by the company.
Liquidity: Stretched
Bank limit utilization is moderate at around 93 percent for the
past 12 months ended April,2023 Cash accrual are expected to be
around INR0.5 crore against term debt obligation of INR0.50-1 crore
over the medium term. The promoters are likely to extend support in
the form of equity and unsecured loans to meet its working capital
requirements and repayment obligations, in case of any exigency.
The current ratio is healthy at 1.86 times on March 31, 2023.
Outlook: Stable
CRISIL Ratings believes MJG will continue to benefit from the
extensive experience of its promoters.
Rating sensitivity factors
Upward factors:
* Substantial increase in revenue and profitability leading to cash
accrual of more than INR1 crore
* Sustenance of efficient working capital management
Downward factors:
* Significant decline in revenue by over 20% with lower
profitability, resulting in lower than expected net cash accruals
* Significant stretch in working capital cycle
Incorporated in 2008, MJGPPL is engaged in the milling and
processing of parboiled rice. Its facility, in Phansidewa,
Darjeeling (West Bengal), commenced commercial operations on March
10, 2015. The company was initially incorporated as Dharmik
Marketing Pvt Ltd. However, in 2010, the management and ownership
of the company was acquired by Siliguribased M. B. Group. MJG
markets its products under Rangeet, Jeevan Moti, Swarna Bhumi, and
Suman brands. The promoters already had more than a decade's
experience in rice trading and ventured into rice milling through
MJG.
MODICON PRIVATE: CRISIL Withdraws B+ Rating on INR15.5cr Cash Loan
------------------------------------------------------------------
CRISIL Ratings has withdrawn its ratings on the bank facilities of
Modicon Private Limited (MPL) on the request of the company and
receipt of a no objection certificate from its bank. The rating
action is in line with CRISIL Ratings' policy on withdrawal of its
ratings on bank loans.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL A4/Issuer Not
Cooperating (Withdrawn)
Cash Credit 15.5 CRISIL B+/Stable/Issuer Not
Cooperating (Withdrawn)
Proposed Long Term 4.5 CRISIL B+/Stable/Issuer Not
Bank Loan Facility Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with MPL for
obtaining information through letters and emails dated April 19,
2024, among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MPL. This restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the latest available information, the ratings on bank facilities of
MPL continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Co-operating'.
MPL manufactures low-voltage electrical contacts and assemblies
that are mainly used in switchgears. Its plant, located in Turbhe,
Navi Mumbai, has an installed capacity of 400 tonnes per annum for
manufacturing of low and medium voltage electrical contacts and
99.99 per cent pure silver bars. The company was established in
2004 by Mr Sanwarmal Modi, who has around five decades of
experience in bullion trade.
SHIV NARAIN: CRISIL Lowers Rating on INR11cr Cash Loan to D
-----------------------------------------------------------
CRISIL Ratings has downgraded the rating of Shiv Narain Periwal and
Sons Private Limited (SNPSPL) to 'CRISIL D Issuer Not Cooperating'
from 'CRISIL B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 11 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with SNPSPL for
obtaining information through letters and email dated June 11, 2024
among others, apart from telephonic communication. However, the
issuer has remained non-cooperative.
Investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'issuer not cooperating' as the rating has been
arrived at without any interaction with the management and is based
on best available, limited or dated information regarding the
company. Such non-cooperation by a rated entity may be a result of
weakening of its credit risk profile. Ratings with the 'issuer not
cooperating' suffix lack a forward-looking component.
Detailed Rationale
Despite repeated attempts to engage with the management of SNPSPL,
CRISIL Ratings did not receive any information on the financial
performance or strategic intent of the entity. This restricts the
ability of CRISIL Ratings to take a forward-looking view on the
credit quality of the company. The rating action on SNPSPL is
consistent with the criteria detailed in 'Assessing information
adequacy risk'. Based on the last available information, CRISIL
Ratings has downgraded the rating to 'CRISIL D Issuer Not
Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating'. As per
information available in the public domain, there remains
delinquency in company accounts and clarity about the same from the
management and bankers is continuing to remain awaited.
SNPPL, set up in 1978 as a proprietorship firm by Mr Sunil Periwal
and reconstituted as a private limited company in June 2014, is the
authorised distributor of fertilizers, pesticides, and seeds of
various companies in Abohar. Its operations are managed by Mr Sunil
Periwal and his brother Mr Jagat Periwal.
SHUBH MANGAL: CRISIL Lowers Rating on INR5cr LT Loan to D
---------------------------------------------------------
CRISIL Ratings has downgraded the ratings on the bank facilities of
Shubh Mangal Textile Industries LLP (SMTI) to 'CRISIL D Issuer Not
Cooperating' from 'CRISIL B+/Stable Issuer Not Cooperating' due to
delay in debt servicing obligations.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING)
Cash Term Loan 3 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING)
Proposed Long Term 5 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with SMTI for
obtaining information through letter and email dated September 11,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such
non-co-operation by a rated entity may be a result of deterioration
in its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SMTI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SMTI
is consistent with 'Assessing Information Adequacy Risk'. The
ratings on the bank facilities of SMTI has been downgraded to
'CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable Issuer Not
Cooperating' due to delay in debt servicing obligations.
Analytical Approach
For arriving at the rating, CRISIL Ratings has combined the
business and financial risk profiles of S and Shubh Mangal Textile
Industries LLP. This is because these two entities, together
referred to as the Subhlene group, belong to the same promoters,
are in the same line of business and have significant operational
and financial synergies.
SF set up in 2000, and SMTI, set up in 2014, is promoted by Mumbai
based, Mr. Mahesh Gupta, his wife, Mrs. Lata Gupta and his son, Mr.
Anuj Gupta. The group is engaged in manufacturing and trading of
fabrics. The group has its manufacturing facility in Silvassa,
Gujarat.
SUBHLENE FABRICS: CRISIL Lowers Rating on INR9.5cr Loan to D
------------------------------------------------------------
CRISIL Ratings has downgraded the ratings on the bank facilities of
Subhlene Fabrics (SF) has been downgraded to 'CRISIL D Issuer Not
Cooperating' from 'CRISIL B+/Stable Issuer Not Cooperating' due to
delay in debt servicing obligations.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9.5 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING)
Proposed Long Term 0.5 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with SF for
obtaining information through letter and email dated September 11,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such
non-co-operation by a rated entity may be a result of deterioration
in its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SF, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SF is
consistent with 'Assessing Information Adequacy Risk'. The ratings
on the bank facilities of SF has been downgraded to 'CRISIL D
Issuer Not Cooperating' from 'CRISIL B+/Stable Issuer Not
Cooperating' due to delay in debt servicing obligations.
Analytical Approach
For arriving at the rating, CRISIL Ratings has combined the
business and financial risk profiles of S and Shubh Mangal Textile
Industries LLP. This is because these two entities, together
referred to as the Subhlene group, belong to the same promoters,
are in the same line of business and have significant operational
and financial synergies.
About the Group
SF set up in 2000, and SMTI, set up in 2014, is promoted by Mumbai
based, Mr. Mahesh Gupta, his wife, Mrs. Lata Gupta and his son, Mr.
Anuj Gupta. The group is engaged in manufacturing and trading of
fabrics. The group has its manufacturing facility in Silvassa,
Gujarat.
Status of non cooperation with previous CRA:
Credit Analysis & Research Ltd. has assigned non-cooperative
rating to the bank facilities of SMTI vide press release dated
March 6, 2020 on account of non-cooperation by SF with the efforts
to undertake a review of the ratings outstanding.
SUPER SHOES: CRISIL Keeps B Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Super Shoes
Limited (SSL) continue to be 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.5 CRISIL B/Stable (Issuer Not
Cooperating)
Letter of credit & 0.48 CRISIL A4 (Issuer Not
Bank Guarantee Cooperating)
Proposed Cash 1.5 CRISIL B/Stable (Issuer Not
Credit Limit Cooperating)
Proposed Long Term 1.52 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with SSL for
obtaining information through letter and email dated August 12,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SSL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SSL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SSL continues to be 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating'.
SSL, incorporated in 2008-09, is engaged in manufacturing of upper
and leather shoes for both men and women. The company is promoted
by Mr Veqarul-Ul-Amin. The company is located in Unnao at Leather
Technology Park, situated 8 kms from Kanpur (Uttar Pradesh).
VED FOUNDATION: CRISIL Keeps B Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Ved
Foundation (VF) continue to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit/ 20 CRISIL B/Stable (Issuer Not
Overdraft facility Cooperating)
Proposed Fund- 10 CRISIL B/Stable (Issuer Not
Based Bank Limits Cooperating)
CRISIL Ratings has been consistently following up with VF for
obtaining information through letter and email dated August 12,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of VF, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VF is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of VF
continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
VF is a private trust set up by members of the Ghaziabad-based Goel
family in fiscal 2006. The trust runs ABES-IT on a 15-acre campus
in Ghaziabad. The trustees entered the education business in 2000
through SEE, which operates a single engineering institute, ABES
Engineering College, in Ghaziabad. ABES-IT is approved by AICTE and
is affiliated to UPTU.
YUVRAJ BUILDCON: CRISIL Keeps B+ Debt Rating in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Yuvraj
Buildcon Private Limited (YBPL) continues to be 'CRISIL B+/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Term Loan 7 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with YBPL for
obtaining information through letter and email dated August 12,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of YBPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on YBPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
YBPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Incorporated in 2012, YBPL is engaged in residential real estate
development. The company is promoted by Mr. Jitendra Kumar Sahu and
Mr. Virendra Sahu and undertakes projects mainly in Bilaspur.
===============
M A L A Y S I A
===============
BINTAI KINDEN: Proposes Regularisation Plan to Exit PN17 Status
---------------------------------------------------------------
The Star reports that Bintai Kinden Corp Bhd has announced its
proposed regularisation plan, which will include a proposed
diversification into the construction sector.
The Star relates that the group, which plans to submit its proposed
regularisation plan to Bursa Malaysia for approval within a month,
said this was a key component of its strategic measures to uplift
its Practice Note 17 (PN17) status.
The proposed diversification into the construction sector is
expected to complement its core mechanical and electrical (M&E)
engineering business.
"The value of work done in the construction sector reached RM38.9
billion in the second quarter of 2024, with a 20.2% growth rate,
driven by civil engineering and residential building projects.
"We are well-positioned to benefit from this momentum through our
diversification into construction, which we expect will
significantly boost our revenue and contribute to more than 25% of
our profits in the near future," said BIntai Kinden managing
director and CEO Datuk Tay Chor Han in a statement, The Star
relays.
Further to the proposed regularisation plan, the group also
proposes to reduce its share capital with the cancellation of RM160
million of issued share capital to eliminate accumulated losses,
strengthen its capital base and create and healthier foundation for
growth, according to The Star.
There are also plans for a private placement of 244 million new
shares, representing 20% of the total issued shares to raise up to
RM19.5 million for working capital and an improved balance sheet.
Additionally, the group proposes the granting of an option to allow
Tay to subscribe to up to 146.4 million new shares, or 10% of the
enlarge total issued shares following the completion of the
proposed placement.
Finally, the group will introduce an Employees' Share Option Scheme
(ESOS), which will involve up to 15% of the total issued shares to
incentivise and retain key personnel.
"With the regularisation plan and a strong market outlook, we are
confident in delivering sustainable growth and creating long-term
value for our shareholders," said Tay.
The Star adds that Bintai Kinden said it has successfully
restructured the banking facilities extended to its group of
companies and has effectively rescheduled the majority of its debt
obligations to creditors.
The group said it will update shareholders on the progress of the
regularisation plan and its future developments.
About Bintai Kinden
Bintai Kinden Corp. Bhd. engages in the provision of mechanical and
electrical engineering services, and facilities management services
through its subsidiaries. It operates through the following
segments: Specialized Mechanical and Electrical Engineering
Services; Turnkey, Infrastructure, Civil, and Structural;
Concession Arrangement; and Investment Holding and Others.
Kinden Corporation has been classified as an affected listed issuer
under Practice Note 17 (PN17) of the Main Market Listing
Requirements of Bursa Malaysia. The company's PN17 classification
came after MBSB Bank Bhd (MBSB) on March 29, 2023, issued a notice
of termination to Bintai Kinden as the corporate guarantor and its
wholly-owned subsidiary, Optimal Property Management Sdn Bhd (OPM),
as the borrower in respect of MYR109 million in Islamic banking
facilities in which it has defaulted on.
CAPITAL A: Can Exit PN17 Sans Branding Biz Carve-Out, CEO Says
--------------------------------------------------------------
The Edge Malaysia reports that Capital A Bhd said it no longer
needs to carve out its branding business to achieve the positive
equity position necessary to exit the Practice Note 17 status.
Instead, the proposed sale of its aviation business to AirAsia X
Bhd will be sufficient, Capital A chief executive officer Tan Sri
Tony Fernandes told The Edge in an interview. The priority right
now is to fix the airline business, he said.
"So [the brand business spin-off] is still there, [the process] may
be a bit slowed down," The Edge quotes Mr. Fernandes as saying.
"There's real cash flow from the brand business."
According to The Edge, Capital A's passenger traffic has remained
below pre-pandemic levels even as average fares rebounded, and the
company still had 23 planes in maintenance out of a fleet of nearly
200 aircraft at the end of June.
The company is aiming for a 90% load factor, a measure of how full
planes are with paying passengers, and expects fares to remain
higher than pre-Covid levels.
Capital A mainly runs the short-haul airline business and also
houses subsidiaries such as logistics and e-wallet while AirAsia X
mainly operates the medium-to-long routes, The Edge notes. Both
will hold their extraordinary general meetings in mid-October to
obtain approval for the sale of two AirAsia airline companies.
As part of the deal, AAX will issue 2.31 billion shares to Capital
A at MYR1.30 apiece. Capital A will in turn distribute 1.69 billion
of those AAX shares to its shareholders and be left with a
projected 18.48% stake in AAX.
Other businesses will stay with Capital A, including the branding
business, AirAsia Move app, cargo unit Teleport, its
maintenance-repairs-overhaul division, as well as e-wallet unit Big
Pay, The Edge says.
In February, Capital A had announced plans to carve out its
branding business that charges fees for those who use the AirAsia
brand for US$1.15 billion to a US special purpose acquisition
company as part of a US listing exercise in a bid to address the
PN17 status it has been in since January 2022, The Edge recalls.
The proposed MYR6.68 billion disposal of AirAsia Bhd and AirAsia
Aviation Group Ltd to AAX will lead to a pro forma gain of over
MYR18 billion when the transfer of accumulated losses in the
aviation business is included, according to Capital A.
The Edge adds that the branding business, parked under Capital A
International, will be able to collect a royalty fee based on the
revenue generated by the operating companies over its affiliates'
aviation businesses.
Based on the aviation segment's revenue of RM11.96 billion in 2023,
a 1% royalty fee to Capital A International would have amounted to
MYR119.65 million, The Edge discloses.
About Capital A
Capital A Bhd, formerly known as AirAsia Group Bhd, provides
low-cost air carrier service. The company provides services on
short-haul, point-to-point domestic and international routes.
Capital A, headquartered in Malaysia, operates from hubs in
Malaysia, Thailand, Indonesia, Philippines and India. The airline's
Malaysia and Thailand operations are undertaken via AirAsia Bhd and
Thai AirAsia Co Ltd while AirAsia Group's Indonesia and Philippines
operations are managed under PT Indonesia AirAsia and Philippines
AirAsia Inc.
As reported in the Troubled Company Reporter-Asia Pacific on Jan.
18, 2022, Capital A is in the midst of formulating a plan to
regularize its financial condition to address its Practice Note 17
(PN17) status.
Capital A triggered the PN17 suspended criteria in July 2020 after
its external auditors, Ernst & Young PLT, issued an unqualified
audit opinion with material uncertainty relating to going concern
in respect of its audited financial statements for the financial
year ended Dec. 31, 2019 (FY19) and its shareholders' equity on a
consolidated basis was 50% or less of its share capital.
Capital A also triggered the prescribed criteria pursuant to
Paragraph 8.04 and Paragraph 2.1(a) of PN17 of Bursa's Main Market
Listing Requirements (Main LR), where AirAsia's shareholders'
equity on a consolidated basis was 25% or less of its share capital
and the shareholders' equity is less than MYR40 million based on
the audited financial statements for FY20.
Following relief measures introduced by Bursa and the Securities
Commission Malaysia, Capital A was not classified as a PN17 listed
issuer and was not required to comply with the obligations under
Paragraph 8.04 and PN17 of the Main LR for a period of 18 months
from the date of the first relief announcement, theedgemarkets.com
said. The date of the first relief announcement was July 8, 2020,
and the 18-month period ended on Jan. 7, 2022. Under the relief
measures, companies that triggered any of the suspended criteria
between April 17, 2020 and June 30, 2021, would not be classified
as a PN17 and Guidance Note 3 (GN3) company for 12 months.
=====================
N E W Z E A L A N D
=====================
AMAA & KASH: Creditors' Proofs of Debt Due on Oct. 21
-----------------------------------------------------
Creditors of AMAA & Kash 23 Limited are required to file their
proofs of debt by Oct. 21, 2024, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Sept. 23, 2024.
The company's liquidator is:
John Marshall Scutter
Fervor Limited
Level 1, 17–19 Seaview Road
Paraparaumu Beach
Paraparaumu, New Zealand
ASHLEY ALLEN: Court to Hear Wind-Up Petition on Oct. 18
-------------------------------------------------------
A petition to wind up the operations of Ashley Allen (St Lukes)
Limited will be heard before the High Court at Auckland on Oct. 18,
2024, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Aug. 19, 2024.
The Petitioner's solicitor is:
Cloete van der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
MOA BUILDERS: BDO Tauranga Appointed as Liquidators
---------------------------------------------------
Paul Thomas Manning and Thomas Lee Rodewald of BDO Tauranga on
Sept. 23, 2024, were appointed as liquidators of MOA Builders
Limited.
The liquidators may be reached at:
C/- BDO Tauranga Limited
Level 1, The Hub
525 Cameron Road
PO Box 15660
Tauranga 3144
SC HOLDINGS: Court to Hear Wind-Up Petition on Oct. 7
-----------------------------------------------------
A petition to wind up the operations of SC Holdings Limited will be
heard before the High Court at Hamilton on Oct. 7, 2024, at 10:45
a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Aug. 8, 2024.
The Petitioner's solicitor is:
Christina Anne Hunt
Inland Revenue, Legal Services
21 Home Straight
PO Box 432
Hamilton
T S BUILDING: Waterstone Insolvency Appointed as Receivers
----------------------------------------------------------
Damien Grant and Adam Botterill of Waterstone Insolvency on Sept.
20, 2024, were appointed as receivers and managers of T S Building
Limited.
The receivers and managers may be reached at:
Adam Botterill
Damien Grant
Waterstone Insolvency
PO Box 352
Auckland 1140
=================
S I N G A P O R E
=================
ASIA POWER: Commences Wind-Up Proceedings
-----------------------------------------
Members of Asia Power Development Platform Joint Venture Pte Ltd,
on Sept. 25, 2024, passed a resolution to voluntarily wind up the
company's operations.
The company's liquidators are:
Ms. Oon Su Sun
Ms. Dang Looyean
Finova Advisory Pte Ltd
182 Cecil Street
#30-01 Frasers Tower
Singapore 069547
FOODSTUFFS SUPPLY: Court to Hear Wind-Up Petition on Oct. 18
------------------------------------------------------------
A petition to wind up the operations of Foodstuffs Supply Pte Ltd
will be heard before the High Court of Singapore on Oct. 18, 2024,
at 10:00 a.m.
Maybank Singapore Limited filed the petition against the company on
Sept. 23, 2024.
The Petitioner's solicitors are:
Adsan Law LLC
300 Beach Road
#26-00 The Concourse
Singapore 199555
GRACEWOOD PETROLEUM: Commences Wind-Up Proceedings
--------------------------------------------------
Members of Gracewood Petroleum (Singapore) Pte Ltd on Sept. 24,
2024, passed a resolution to voluntarily wind up the company's
operations.
The company's liquidator is:
Lim Yeong Seng
13A Mackenzie Road
Singapore 228676
MAXEON SOLAR: Issues 829.2 Million Ordinary Shares for $100 Million
-------------------------------------------------------------------
As previously announced through a current report on Form 6-K filed
by Maxeon Solar Technologies, Ltd. with the Securities and Exchange
Commission, on August 30, 2024, the Company issued and sold to
Zhonghuan Singapore Investment and Development Pte. Ltd. ("TZE"),
and TZE purchased, 829,187,396 ordinary shares at a purchase price
of $0.1206 per share for an aggregate purchase price of
$99,999,999.96.
Pursuant to the indenture dated July 17, 2020, among the Company
and the Trustee, in relation to the Company's 6.50% Green
Convertible Senior Notes due 2025 (the "2025 Notes"), if a
Fundamental Change occurs, then each holder of 2025 Notes will have
the right to require the Company to repurchase such holder's 2025
Notes in accordance with the 2025 Notes Indenture. As of September
24, 2024, the aggregate principal amount of the outstanding 2025
Notes is $1,500,000.
Pursuant to Section 4.02(E) of the 2025 Notes Indenture, the
Company hereby provides the following information relating to the
TZE Fundamental Change:
(A) On September 4, 2024, TZE and TCL Zhonghuan Renewable Energy
Technology Co., Ltd. ("TZE Parent") filed an amendment to their
joint report on Schedule 13D pursuant to the Exchange Act
disclosing that each of them has become the direct "beneficial
owner" of Ordinary Shares representing 69.30% of the voting power
of all of the Ordinary Shares (the "TZE Fundamental Change").
(B) The effective date of the TZE Fundamental Change is September
4, 2024;
(C) To exercise its Fundamental Change Repurchase Right for a Note
following a Fundamental Change, the Holder thereof must deliver to
the Paying Agent:
a. before the Close of Business on the Business Day immediately
before the Fundamental Change Repurchase Date, a duly completed,
written Fundamental Change Repurchase Notice with respect to such
Note; and
b. such Note by book-entry transfer.
Each Fundamental Change Repurchase Notice with respect to a Note
must state:
a. the principal amount of such Note to be repurchased, which
must be an Authorized Denomination; and
b. that such Holder is exercising its Fundamental Change
Repurchase Right with respect to such principal amount of such
Note; provided, however, that as such Note is a Global Note, such
Fundamental Change Repurchase Notice must comply with the
Depositary Procedures (and any such Fundamental Change Repurchase
Notice delivered in compliance with the Depositary Procedures will
be deemed to satisfy these requirements).
A Holder that has delivered a Fundamental Change Repurchase Notice
with respect to a Note may withdraw such Fundamental Change
Repurchase Notice by delivering a written notice of withdrawal to
the Paying Agent at any time before the Close of Business on the
Business Day immediately before the Fundamental Change Repurchase
Date. Such withdrawal notice must state:
a. the principal amount of such Note to be withdrawn, which must
be an Authorized Denomination; and
b. the principal amount of such Note, if any, that remains
subject to such Fundamental Change Repurchase Notice, which must be
an Authorized Denomination; provided, however, that as such Note is
a Global Note, such withdrawal notice must comply with the
Depositary Procedures (and any such withdrawal notice delivered in
compliance with the Depositary Procedures will be deemed to satisfy
these requirements);
(D) The Fundamental Change Repurchase Date for the TZE Fundamental
Change is November 14, 2024;
(E) The Fundamental Change Repurchase Price per US$1,000 principal
amount of the Notes for such Fundamental Change is US$1,021.486111,
equal to 100% of the principal amount of such Note plus accrued and
unpaid interest on such Note to, but excluding, the Fundamental
Change Repurchase Date;
(F) The name and address of the Paying Agent and the Conversion
Agent are as follows:
Deutsche Bank Trust Company Americas
c/o DB Services Americas, Inc.
5022 Gate Parkway Suite 200
MS JCK01-218
Jacksonville, FL 32256
(G) The Conversion Rate in effect on the date hereof is US$54.9611
Ordinary Share per US$1,000 principal amount of Notes. No
adjustments to the Conversion Rate will be resulted from the TZE
Fundamental Change;
(H) The Notes for which a Fundamental Change Repurchase Notice has
been duly tendered and not duly withdrawn must be delivered to the
Paying Agent for the Holder thereof to be entitled to receive the
Fundamental Change Repurchase Price;
(I) The Notes (or any portion thereof) that are subject to a
Fundamental Change Repurchase Notice that has been duly tendered
may be converted only if such Fundamental Change Repurchase Notice
is withdrawn in accordance with the Indenture;
(J) The CUSIP number for the Notes is 57779B AB0;
(K) The contact information for the Transfer Agent is as follows:
Deutsche Bank Trust Company Americas
c/o DB Services Americas, Inc.
5022 Gate Parkway Suite 200
MS JCK01-218
Jacksonville, FL 32256
Email: db.reorg@db.com
Phone: +1 800-735-7777; and
(L) The contact information for the Company's counsel is as
follows:
White & Case
Jessica Zhou
Phone Number: +852 28228725
Email: jessica.zhou@whitecase.com.
About Maxeon Solar
Maxeon Solar Technologies, Ltd. is a Singapore-based company that
designs and manufactures photovoltaic panels. The company was
previously a division of the American SunPower company before it
was spun off in August 2020. Maxeon is still the primary provider
of solar panels for SunPower.
Singapore-based Ernst & Young LLP, the Company's auditor since
2020, issued a "going concern" qualification in its report dated
May 30, 2024, citing that the Company has suffered recurring losses
from operations and negative free cash flows and has stated that
substantial doubt exists about the Company's ability to continue as
a going concern.
As of December 31, 2023, the Company had $1 billion in total
assets, $997.4 million in total liabilities, and $4.6 million in
total equity.
MR. DONER: Court to Hear Wind-Up Petition on Oct. 18
----------------------------------------------------
A petition to wind up the operations of Mr. Doner Kebab Pte Ltd
will be heard before the High Court of Singapore on Oct. 18, 2024,
at 10:00 a.m.
Maybank Singapore Limited filed the petition against the company on
Sept. 20, 2024.
The Petitioner's solicitors are:
M/s Advent Law Corporation
111 North Bridge Road
#25-03 Peninsula Plaza
Singapore 179098
SPORTIVO WORKS: Court Enters Wind-Up Order
------------------------------------------
The High Court of Singapore entered an order on Sept. 16, 2024, to
wind up the operations of Sportivo Works 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
=====================
S O U T H K O R E A
=====================
QOO10: Prosecutors Question CEO Over e-commerce Insolvency
----------------------------------------------------------
Yonhap News Agency reports that prosecutors on Sept. 30 grilled an
e-commerce tycoon believed to be at the center of the large-scale
insolvency incidents involving online shopping platforms TIMON and
WeMakePrice.
Ku Young-bae, CEO of the Singapore-based Qoo10 Group, the parent
company of TIMON and WeMakePrice, underwent questioning as a fraud
and embezzlement suspect at the Seoul Central District Prosecutors
Office on Sept. 30, according to Yonhap.
He entered the prosecution office at 8:55 a.m. after telling
reporters that he will faithfully undergo the investigation, Yonhap
relates.
In late July, TIMON and WeMakePrice filed for court receivership
due to liquidity problems that resulted in massive delayed payments
to vendors on their platforms.
According to Yonhap, prosecutors estimated the amount of suspected
fraud and embezzlement at KRW1.4 trillion (US$1.07 billion) and 50
billion won, respectively. They also suspect that Qoo10 may have
misused about KRW50 billion of the shopping platforms' due payments
to vendors to acquire an overseas shopping mall.
Yonhap relates that prosecutors reportedly grilled Ku about whether
he arbitrarily used the affiliated companies' funds and was
involved in their irregular business operations despite knowing
their financial situations were worsening.
About Qoo10
Qoo10 retails e-commerce products. The Company offers personal
care, sports apparel, consumer electronics, home furnishing, food,
toys, and other consumer products. Qoo10 serves customers
worldwide. Qoo10 owns online marketplaces TMON and WeMakePrice.
As reported the Troubled Company Reporter-Asia Pacific on Sept. 11,
2024, the Seoul Bankruptcy Court on Sept. 10 granted a
rehabilitation process for liquidity crisis-hit e-commerce
platforms TMON and WeMakePrice, allowing them to restructure their
debts to creditors under the supervision of court-appointed
custodians.
According to Yonhap News Agency, the decision came more than a
month after TMON and WeMakePrice filed for court-supervised
rehabilitation, following overdue payments to vendors operating on
their platforms that reached nearly KRW1 trillion (US$744
million).
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T H A I L A N D
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THAI AIRWAYS: Plans US$1.3 Billion Share Sale to Exit Debt Revamp
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Bloomberg News reports that THAI Airways International plans to
issue new shares worth at least US$1.3 billion to creditors and
other investors by December, a major step toward exiting a
court-monitored debt restructuring and resumption of trading in its
shares.
The carrier will offer about 6.81 billion new shares to creditors
under a debt-to-equity swap, according to its regulatory filing on
Sept. 30, Bloomberg relays. These stocks are priced at THB2.5452
each, valuing the offering at THB17.3 billion, it said.
Another 9.82 billion new shares will be for existing shareholders,
employees and other investors in a private offering. While the
company didn't specify the share price for this offering in the
regulator filing, it said in a separate statement that the stocks
will not be priced lower than THB2.5452 each. The company expects
to complete both the share sales by Dec. 31, Bloomberg notes.
According to Bloomberg, the Thai flag carrier aims to emerge from
its court-monitored debt-restructuring plan in 2025, five years
after it filed for bankruptcy protection. The state-controlled
airline had posted losses from operations every year from 2013,
which were worsened by the Covid pandemic that forced it to seek
bankruptcy protection.
The airline has benefited from a post-pandemic travel boom, helping
boost its earnings and cash flows since 2023. The turnaround has
prompted Thai Airways to order a new fleet of Boeing and Airbus
jets to expand its services to newer routes and locally.
Thai Airways aims to expand its fleet to 116 aircraft by 2027,
bigger than its pre-Covid size of 103, chief executive officer Chai
Eamsiri has said. It expects to operate 79 jets by the end of
2024.
Thai Airways International won court approval to restructure a debt
load of US$12.9 billion as the airline, which is already in
bankruptcy protection, seeks to turn around its fortunes.
"The debt-to-equity swap and new share offering will help Thai Air
achieve its debt restructuring process by turning shareholders'
capital into a surplus," Bloomberg quotes Piyasvasti Amranand, a
court-appointed debt administrator, as saying in the statement. The
shareholders equity had a deficit of about THB40 billion as of June
30, he said.
The improving finances and capital-raising plan will accelerate the
resumption of trading in the airline's shares in 2025, which have
been suspended since May 2021, according to Piyasvasti.
About Thai Airways
Thai Airways International PCL (BAK:THAI) --
http://www.thaiairways.co.th/-- is the national carrier of
Thailand. The company provides air transportation, freight and
mail services on domestic and international routes including Asia,
Europe, North America, Africa and South West Pacific. The Company
is a state enterprise which is controlled by the government and
partly owned by the public.
As reported in Troubled Company Reporter-Asia Pacific in May 2020,
Thailand's cabinet approved a plan to restructure troubled Thai
Airways International Pcl's finances through a bankruptcy court,
the Southeast Asian country's prime minister said on May 19, 2020.
The plan for a court-led restructuring of the national carrier
replaces a previous proposal of a government-backed rescue package
that was heavily criticised in the country.
Thai Airways on May 27, 2020 said it appointed board members as
rehabilitation planners in a bankruptcy court submission.
On Sept. 14, 2020, Thailand's Central Bankruptcy Court approved
Thai Airways debt restructuring.
Thai Airways posted losses every year after 2012, except in 2016.
In 2019, it reported losses of THB12.04 billion.
The company's shareholders' equity turned negative at minus THB18.1
billion ($580 million) as of June. While its total liabilities
ballooned to THB332.1 billion, a 36.7% increase from the end of
2019, its cash and cash equivalents fell by 35.5% to THB13.9
billion, according to the Nikkei Asia.
*********
S U B S C R I P T I O N I N F O R M A T I O N
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
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Copyright 2024. All rights reserved. ISSN: 1520-9482.
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