/raid1/www/Hosts/bankrupt/TCRAP_Public/241031.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, October 31, 2024, Vol. 27, No. 219
Headlines
A U S T R A L I A
COASTLINE CORPORATION: Second Creditors' Meeting Set for Nov. 4
E & T PROPERTY: First Creditors' Meeting Set for Nov. 7
G N CONSTRUCTION: Multiplex Ordered to Pay Project Amounts
MUNTUZA CONSULT: Second Creditors' Meeting Set for Nov. 4
ONE KEY: Hall Chadwick Appointed as Administrators
PRANCE DEVELOPMENTS: First Creditors' Meeting Set for Nov. 6
SEVILLE OPTIMISED: ASIC Disqualifies Director for Five Years
SPARTAN FABRICATION: Second Creditors' Meeting Set for Nov. 6
C H I N A
DATASEA INC: Closes $4-Mil. Offering Funded by Major Shareholders
I N D I A
AUTRANS INDIA: Voluntary Liquidation Process Case Summary
CPR LABORATORIES: CRISIL Keeps D Debt Ratings in Not Cooperating
EON ELECTRIC: CRISIL Keeps D Debt Ratings in Not Cooperating
EXIM LOGISTICS: CRISIL Withdraws D Rating on INR9cr Loan
FASHION KNITS: CRISIL Lowers Long/Short Term Ratings to D
IRAA CLOTHING: CRISIL Keeps D Debt Ratings in Not Cooperating
JAGRITI SOLVEX: CRISIL Keeps D Debt Ratings in Not Cooperating
JAYAMALAR SPINNING: CRISIL Keeps D Ratings in Not Cooperating
MANAPPURAM FINANCE: Fitch Affirms 'BB-' Long-Term IDRs
MRB PATIALA: CRISIL Withdraws D Rating on INR30cr Term Loan
NORTH AMERICAN: Liquidation Process Case Summary
PASHUPATI TEXSPIN: CRISIL Cuts Long/Short Term Ratings to D
RADHE FOODS: CRISIL Keeps D Debt Ratings in Not Cooperating
RAM MEHER: CRISIL Keeps D Debt Ratings in Not Cooperating
SAINARAYAN PLASTICS: CRISIL Keeps D Ratings in Not Cooperating
SANCO INDUSTRIES: CRISIL Keeps D Debt Ratings in Not Cooperating
SH INFRATECH: ICRA Keeps D Debt Ratings in Not Cooperating
SITI NETWORKS: Axis Bank Told to Hold INR143cr in Separate Account
SOFYX SYSTEMS: Voluntary Liquidation Process Case Summary
SRINIVASA SPINTEX: ICRA Keeps D Debt Ratings in Not Cooperating
SVS CONSTRUCTIONS: ICRA Keeps B Debt Rating in Not Cooperating
THERDOSE PHARMA: ICRA Keeps D Debt Ratings in Not Cooperating
TRIVENI ENTERPRISES: ICRA Keeps B+ Debt Rating in Not Cooperating
UNIQUE MALLS: CRISIL Keeps D Debt Ratings in Not Cooperating
V. S. COTTON: CRISIL Keeps D Debt Ratings in Not Cooperating
VAIDYANATH SAHAKARI: CRISIL Keeps D Ratings in Not Cooperating
VEDANTA RESOURCES: Moody's Ups CFR to B3 & Unsecured Bonds to Caa1
VELAMMAL EDUCATIONAL: ICRA Keeps D Ratings in Not Cooperating
VEMPARALA VENKAT: CRISIL Keeps D Debt Ratings in Not Cooperating
VENUS ROLLING: CRISIL Keeps D Debt Ratings in Not Cooperating
VISWAM EDUCATIONAL: CRISIL Keeps D Ratings in Not Cooperating
VTJ SEA: CRISIL Keeps D Debt Ratings in Not Cooperating Category
I N D O N E S I A
SRI REJEKI: Indonesian Gov't. Vows to Save 50,000 Jobs
M A L A Y S I A
1MDB: Malaysia Court Orders Najib Razak to Defend More Charges
N E W Z E A L A N D
HENDERSON ONE: Court to Hear Wind-Up Petition on Nov. 7
KOHIMARAMA DEVELOPMENTS: Placed in Receivership
NONI B: First Creditors' Meeting Set for Nov. 7
R-LITS CONTRACTING: Placed Into Liquidation; Owes More Than NZD7MM
SELETTI NEW ZEALAND: Court to Hear Wind-Up Petition on Nov. 7
YLG TRADE: Court to Hear Wind-Up Petition on Dec. 6
S I N G A P O R E
CAPTAIN K: Court Enters Wind-Up Order
DAI LOU: Court to Hear Wind-Up Petition on Nov. 15
FOODSTUFFS SUPPLY: Court Enters Wind-Up Order
GIN LIN: Court Enters Wind-Up Order
LIPPO MALLS: Fitch Affirms Then Withdraws 'CCC+' Long-Term IDR
REJOY HARTON: Court Enters Wind-Up Order
YONGNAM HOLDINGS: Creditors Meetings Scheduled for Nov. 11
- - - - -
=================
A U S T R A L I A
=================
COASTLINE CORPORATION: Second Creditors' Meeting Set for Nov. 4
---------------------------------------------------------------
A second meeting of creditors in the proceedings of Coastline
Corporation Pty Ltd has been set for Nov. 4, 2024 at 1:00 p.m. at
Mezzanine Level, 28 The Esplanade in Perth.
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 Nov. 1, 2024 at 4:00 p.m.
Jeremy Joseph Nipps and Thomas Donald Birch of WLP Restructuring
were appointed as administrators of the company on Sept. 30, 2024.
E & T PROPERTY: First Creditors' Meeting Set for Nov. 7
-------------------------------------------------------
A first meeting of the creditors in the proceedings of E & T
Property Pty Ltd will be held on Nov. 7, 2024, at 11:00 a.m. at via
Zoom.
Andrew Michael Smith and Robert Allan Jacobs of Auxuilium Partners
were appointed as administrators of the company on Oct. 28, 2024.
G N CONSTRUCTION: Multiplex Ordered to Pay Project Amounts
----------------------------------------------------------
Hall Chadwick said that the Honourable Justice Cobby of the Supreme
Court of Western Australia on Oct. 24, 2024 made Orders that
Multiplex Constructions Pty Ltd pay into Court the amounts held by
it in relation to the agreements made between Multiplex
Constructions Pty Ltd, Hanson Construction Materials Pty Ltd and
G N Construction (Aust) Pty Ltd concerning subcontract 111449-031
for the Joondalup Health Campus project and subcontract
111455.T.006 for the Nine The Esplanade (EQ Lot 6) project.
Those amounts are to be held by the Court subject to further Order
of the Court.
Any proceedings to be commenced by either Hanson Construction
Materials Pty Ltd or G N Construction (Aust) Pty Ltd in relation to
the issues raised in these proceedings need to be commenced on or
before Nov. 21, 2024, Hall Chadwick added.
G N Construction (Aust) Pty Ltd's line of business included the
construction of nonresidential buildings.
Cameron Shaw and Richard Albarran of Hall Chadwick were appointed
as administrators of the company on Feb. 10, 2024.
MUNTUZA CONSULT: Second Creditors' Meeting Set for Nov. 4
---------------------------------------------------------
A second meeting of creditors in the proceedings of Muntuza Consult
Pty Ltd has been set for Nov. 4, 2024 at 11:00 a.m. at the offices
of Cor Cordis at Mezzanine Level, 28 The Esplanade in Perth.
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 Nov. 1, 2024 at 4:00 p.m.
Jeremy Joseph Nipps and Thomas Donald Birch of WLP Restructuring
were appointed as administrators of the company on Sept. 30, 2024.
ONE KEY: Hall Chadwick Appointed as Administrators
--------------------------------------------------
Richard Albarran, Kathleen Vouris, Cameron Shaw and Marcus Watters
of Hall Chadwick were appointed Administrators of the following One
Key Resources Group Companies on Oct. 28, 2024 pursuant to Section
436A of the Corporations Act 2001 by a resolution of the Sole
Director of the Companies:
- One Key Resources Pty Ltd
- FES Coal Pty Ltd
- OKR Staff Pty Ltd
- FES Mining Services Pty Ltd
- One Key Resources (Mining) Pty Ltd
- One Key QLD Pty Ltd
- OKR Coal Australia Pty Ltd
- One Key Resources (Qld) Pty Ltd
- One Key Resources (NSW) Pty Ltd
- One Key Holdings Pty Ltd
"The purpose of the appointment of an Administrator is to allow an
independent insolvency practitioner to take control of the company
during which creditors' claims are put on hold," Hall Chadwick said
in a statement.
"At the end of that period the Administrators are required to
provide creditors with information and recommendations to assist
creditors to decide upon the Companies' future, which they
ordinarily do at a meeting of creditors held at the end of the
convening period.
"The Administrators are continuing to trade the business of the
Companies, including the continuation of employment of all
employees whilst a proposal for a Deed of Company Arrangement is
being formulated to be presented to creditors at the second meeting
of creditors.
"The Administrators and their staff are available to discuss the
continued operations and assist with any queries from stakeholders
including creditors and employees."
PRANCE DEVELOPMENTS: First Creditors' Meeting Set for Nov. 6
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Prance
Developments Pty Ltd will be held on Nov. 6, 2024, at 11:00 a.m. at
the offices of SV Partners at Level 17, 200 Queen Street,
Melbourne, Victoria 3000 and by way of teleconference facilities
(Microsoft Teams).
Michael Carrafa and Peter Gountzos of SV Partners were appointed as
administrators of the company on Oct. 25, 2024.
SEVILLE OPTIMISED: ASIC Disqualifies Director for Five Years
------------------------------------------------------------
The Australian Securities & Investments Commission (ASIC) has
disqualified Constandinos Ganatzos, of Brighton-Le-Sands, NSW, from
managing corporations for the maximum period of five years due to
his involvement in the failure of 21 companies.
At the time of ASIC's decision, the 21 companies owed a combined
total of AUD71,144,235 to unsecured creditors, including
AUD21,727,914 owing to the Australian Taxation Office, AUD1,285,894
owing to the Office of State Revenue and AUD1,287,138 for workers
compensation debt. The list of companies can be found below.
Between October 2016 and November 2021 Mr. Ganatzos was the
director of the following companies:
* C.N. 616 870 627 Pty Ltd
* Premier Holdings Group Pty Ltd
* Seville Optimised Solutions Pty Ltd
* Phalanga A Pty Ltd
* Grace Management Holdings Pty Ltd
* MF069ESL Pty Limited
* Southern Logistics Pty Ltd
* Capitol Property Services Pty Ltd
* TKT9M Pty Ltd ACN
* DK North Pty Ltd
* ACN 144 496 042 Pty Ltd
* Rio Hire Systems Pty Ltd
* Newcastle Building Manpower
* Project Service Holdings Pty Ltd
* Statewide Manpower Solutions
* Newcastle Tiling and Bathrooms Pty Ltd
* Kas Sussex Pty Ltd
* Palisade Kingsway Pty Ltd
* Phthia Pty Ltd ACN
* NSH East Pty Ltd, and
* Kerr Flowers Pty Limited.
- Capitol Property Services, DK North, A.C.N. 616 870 627,
Newcastle Building Manpower, Newcastle Tiling and Bathrooms, Kas
Sussex and Palisade Kingsway operated in the construction
industry.
- Rio Hire Systems, Project Service Holdings, Statewide Manpower
Solutions, Premier Holdings Group, Seville Optimised Solutions and
Grace Management Holdings operated labour hire businesses.
- TKT9M operated as a payroll service entity.
- ACN 144 496 042 operated in the financial and insurance services
industry.
- Phalanga A and Phthia operated as agencies in the industries of
photography, fashion and beauty.
- NSH East operated in the restaurant industry.
- Kerr Flowers operated in retail trade.
- MF069ESL operated as a timber joinery business.
- Southern Logistics operated in the transport, postal and
warehousing industry.
ASIC found that Mr. Ganatzos did not know or understand his duties
as a director and completely failed to discharge those duties as he
had:
* agreed to act as a director of five companies but did not
participate in their management;
* failed to ensure that four companies complied with their
obligation to lodge BAS, income tax returns and annual payment
summary statements with the ATO;
* allowed Seville Optimised Solutions to trade while it was
insolvent;
* failed to ensure that three companies maintained adequate
financial records; and
* failed to assist the liquidator after their appointment by
not delivering up books and records and completing a RATA for the
company C.N. 616 870 627 Pty Ltd.
In disqualifying Mr. Ganatzos, ASIC relied on supplementary reports
lodged by liquidators, Grahame Ward of Mackay Goodwin, Liam Bailey
of O'Brien Palmer, Thomas James Dawson of Small Business
Restructuring Specialists and Jason Tang of KPT Restructuring. ASIC
assisted Mr Bailey and Mr Tang to prepare their reports by
providing funding from the Assetless Administration Fund.
Mr. Ganatzos is disqualified from managing corporations until
Oct. 21, 2029.
Mr. Ganatzos has the right to seek a review of ASIC's decision by
the Administrative Appeals Tribunal.
SPARTAN FABRICATION: Second Creditors' Meeting Set for Nov. 6
-------------------------------------------------------------
A second meeting of creditors in the proceedings Spartan
Fabrication Pty Ltd and Spartan Rigging Pty Ltd has been set for
Nov. 6, 2024 at 2:00 p.m. via Microsoft Teams.
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 Nov. 4, 2024 at 5:00 p.m.
Paul Vartelas of B K Taylor & Co was appointed as administrator of
the company on Oct. 1, 2024.
=========
C H I N A
=========
DATASEA INC: Closes $4-Mil. Offering Funded by Major Shareholders
-----------------------------------------------------------------
Datasea Inc., a Nevada-based digital technology company focused on
innovative high-tech acoustics and 5G AI multimodal digital
technology, announced that as of October 15, 2024, the Company
closed its Regulation S offering with three investors, including
its two largest shareholders, the Company's CEO and Director,
pursuant to which the Company sold the investors an aggregate of
1,932,224 shares of its common stock.
The purchase price for the Shares was $2.06 per share, which was
equal to the closing price of the Company's common stock on The
Nasdaq Capital Market on September 26, 2024, the date on which the
binding subscription agreements had been entered into by the
parties. The investors have agreed to hold the shares for a period
of no less than 180 days.
The investors in the Offering include two members of the Company's
management, who are also major shareholders, reflecting their
strong confidence in the Company's future development. The funds
raised, in the amount of approximately $4.0 million, will primarily
be used to support the Company's future business operations,
including investments in acoustic high-tech related products design
upgrade, working capital for mass production and on-line sales,
acquiring intellectual property and working capital for the
promotion and sales of 5G AI multimodal digital business products.
Ms. Zhixin Liu, CEO of Datasea stated, "We are pleased to receive
support from our major shareholders, which not only enhances market
confidence in our development but will also help us accelerate the
achievement of our strategic goals."
About Datasea
Headquartered in Beijing, People's Republic of China, Datasea Inc.
-- http://www.dataseainc.com-- is a technology company
incorporated in Nevada, USA, on Sept. 26, 2014, with subsidiaries
and operating entities located in Delaware, US, and China. The
company provides acoustic business services (focusing on high-tech
acoustic technologies and applications such as ultrasound,
infrasound, and Schumann resonance), 5G application services (5G AI
multimodal digital business), and other products and services to
various corporate and individual customers.
Los Angeles, California-based Kreit & Chiu CPA LLP, the Company's
auditor since 2021, issued a "going concern" qualification in its
report dated Sept. 26, 2024, citing that the Company had an
accumulated deficit of $39.44 million and incurred a net loss from
operations of approximately $11.38 million as of and for the year
end June 30, 2024. The Company has had recurring losses from
operations which has raised substantial doubt about the entity's
ability to continue as a going concern.
Datasea reported a net loss attributable to the Company of $11.38
million for the year ended June 30, 2024, compared to a net loss
attributable to the Company of $9.48 million for the year ended
June 30, 2023. As of June 30, 2024, Datasea had $3.29 million in
total assets, $3.60 million in total liabilities, and a total
deficit of $308,278.
=========
I N D I A
=========
AUTRANS INDIA: Voluntary Liquidation Process Case Summary
---------------------------------------------------------
Debtor: Autrans India Private Limited
Door No. 86, 8th floor, Mount Road,
Polyhose Towers,
Guindy, Chennai-600032
Liquidation Commencement Date: October 16, 2024
Court: National Company Law Tribunal, Chennai Bench
Liquidator: N.A. Srinivasan
Temple Tower, 7th Floor,
H-5, No. 672, Anna Salai,
Nandanam, Chennai-600 035
Email: nas@geniconsolutions.com
Contact no: 9003199945
Last date for
submission of claims: November 15, 2024
CPR LABORATORIES: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of CPR
Laboratories Private Limited (CPR) continue to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.90 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 5.54 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 3.56 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with CPR for
obtaining information through letter and email dated September 9,
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 CPR, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on CPR
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
CPR continues to be 'CRISIL D Issuer Not Cooperating'.
Incorporated in March 2016 and promoted by Mr Dalai Ravi Kumar, Mr
Dalai Vijay Kumar, Ms Bangaru Srilaxmi, and Ms Dalai Saraswathi,
CPR is a setting up an API plant in Visakhapatnam.
EON ELECTRIC: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Eon Electric
Limited (EEL) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL D (Issuer Not
Cooperating)
Cash Credit 30 CRISIL D (Issuer Not
Cooperating)
Letter of credit 20 CRISIL D (Issuer Not
& Bank Guarantee Cooperating)
Letter of credit 15 CRISIL D (Issuer Not
& Bank Guarantee Cooperating)
Proposed Long Term 10 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Proposed Short Term 15 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with EEL for
obtaining information through letter and email dated September 9,
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 EEL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on EEL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
EEL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
EEL manufactures and markets energy-efficient lighting and other
electrical and electronic products, such as LED lights, fans, water
heaters, lithium ion batteries, mobile phone accessories, wires and
cables, and allied products. The company has two plants at
Haridwar, and a registered office at Sonepat, Haryana. It has been
listed on the Bombay Stock Exchange (BSE) since 2005, and on
National Stock Exchange (NSE) since 2012. Mr V P Mahendru is the
promoter, and daily operations are managed by his sons, Mr Vivek
Mahendru and Mr Vinay Mahendru.
EXIM LOGISTICS: CRISIL Withdraws D Rating on INR9cr Loan
--------------------------------------------------------
CRISIL Ratings has withdrawn its ratings on the bank facilities of
Exim Logistics Private Limited (ELPL) 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
---------- ----------- -------
Bank Guarantee 1 CRISIL D/Issuer Not
Cooperating (Withdrawn)
Proposed Long Term 2 CRISIL D/Issuer Not
Bank Loan Facility Cooperating (Withdrawn)
Standby Line 1 CRISIL D/Issuer Not
of Credit Cooperating (Withdrawn)
Working Capital 9 CRISIL D/Issuer Not
Facility Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with ELPL for
obtaining information through letter and email dated October 10,
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 ELPL. 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 ELPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, CRISIL Ratings has
continued the ratings on the bank facilities of ELPL to 'CRISIL
D/CRISIL D Issuer not cooperating'.
ELPL was set up in 2006 by Mr Himadri Pattnayak. The company
provides logistics services, mainly road transport, and also acts
as a custom-house agent.
FASHION KNITS: CRISIL Lowers Long/Short Term Ratings to D
---------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
Fashion Knits (FK) to 'CRISIL D/CRISIL D' from 'CRISIL
B+/Stable/CRISIL A4'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL D (Downgraded from
'CRISIL B+/Stable')
Short Term Rating - CRISIL D (Downgraded from
'CRISIL A4')
The downgrade reflects delays in debt servicing on account of weak
liquidity. The company has not disclosed these delays in the
no-default statement it has provided.
The rating reflects FK's presence in a highly fragmented industry
with limited size, working capital intensive operations and weak
financial profile. These weaknesses are partially offset by its
extensive industry experience of the promoters.
Analytical Approach
CRISIL Ratings has evaluated the standalone business and financial
risk profiles of FK.
Key Rating Drivers & Detailed Description
Weaknesses:
* Presence in a highly fragmented industry with limited size: The
industry is highly fragmented and competitive, with a large number
of unorganized players in the market. Such high fragmentation
limits the pricing flexibility and bargaining power of the players.
Also, the threat from large integrated players in the form of
capacity additions limits the growth. The industry is exposed to
the risk low entry barriers. The small initial investment and the
low complexity of operations have resulted in existence of
innumerable entities, much smaller in size, leading to significant
fragmentation.
* Working capital intensive operations: Gross current assets were
at 450–500 days over the three fiscals ended March 31, 2024. Its
intensive working capital management is reflected in its gross
current assets (GCA) of 513 days as on March 31, 2024. Its's large
working capital requirements arise from its high debtor and
inventory levels. It is required to extend long credit period.
Furthermore, due to its business need, it holds large work in
process & inventory.
* Weak financial profile: FK has average financial profile marked
by gearing of 3.47 and total outside liabilities to adj tangible
net worth (TOL/ANW) of 5.17 for year ending on 31st March 2024.
FK's debt protection measures have also been at weak level in past
due to high gearing and low accruals from the operations. The
interest coverage and net cash accrual to total debt (NCATD) ratio
are at 1.33 times and -0.10 times for fiscal 2024. FK debt
protection measures are expected to remain at similar level with
high debt levels.
Strengths:
* Extensive industry experience of the promoters: The promoters
have an experience of over two decades in Textile industry. This
has given them an understanding of the dynamics of the market and
enabled them to establish relationships with suppliers and
customers.
Liquidity: Poor
Liquidity is poor as reflected in delays in repayment of term debt
obligations. Bank limit utilization was high averaging around 100%
for the last 12 months ended March 31, 2024, with instance of
over-withdrawal. Current ratio was moderate, estimated at 1.01
times as on March 31, 2024
Rating sensitivity factors
Upward factor
* Track record of timely debt servicing for at least over 90 days
* Improvement in scale of operations and operating margins leading
to higher cash accruals
FK was established in 1991. FK is engaged in manufacturing of
knitted garments which includes converting fabric into grey cloth,
dyeing fabrics and stitching. FK's manufacturing facility is
located in Tiruppur, Tamil Nadu. FK is a part of R. R. Group. The
firm outsources dyeing to its group company - R R Dyeing.
FK is owned & managed by R. Ramu and R.P. Rajee.
IRAA CLOTHING: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of IRAA Clothing
Private Limited (IRAA) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.05 CRISIL D (Issuer Not
Cooperating)
Cash Credit 8 CRISIL D (Issuer Not
Cooperating)
Cash Credit 10 CRISIL D (Issuer Not
Cooperating)
Funded Interest 0.83 CRISIL D (Issuer Not
Term Loan Cooperating)
Letter of Credit 6.09 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 12.00 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Proposed Long Term 2.92 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 2.76 CRISIL D (Issuer Not
Cooperating)
Working Capital 3.27 CRISIL D (Issuer Not
Demand Loan Cooperating)
Working Capital 2.67 CRISIL D (Issuer Not
Term Loan Cooperating)
CRISIL Ratings has been consistently following up with IRAA for
obtaining information through letter and email dated September 9,
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 IRAA, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on IRAA
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
IRAA continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Incorporated in 2005 as Shagun Clothing Pvt Ltd, the company was
renamed IRAA Clothing Pvt. Ltd on May 5, 2016. The unit, located in
Maharashtra, processes denim garments from fabric. Mr Sunil Biyani
and family manage operations.
JAGRITI SOLVEX: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shri Jagriti
Solvex Private Limited (SJSPL) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft Facility 3 CRISIL D (Issuer Not
Cooperating)
Overdraft Facility 6 CRISIL D (Issuer Not
Cooperating)
Term Loan 5 CRISIL D (Issuer Not
Cooperating)
Term Loan 1 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SJSPL for
obtaining information through letter and email dated September 9,
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 SJSPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SJSPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SJSPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Incorporated in 2011 by Mr. Kamal Kumar, SJSPL operates a rice bran
oil extraction plant and refinery at Mahasamund (Chhattisgarh). The
company commenced operations from April 2017.
JAYAMALAR SPINNING: CRISIL Keeps D Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sri Jayamalar
Spinning Mills Private Limited (SJSMPL) continue to be 'CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8.0 CRISIL D (ISSUER NOT
COOPERATING)
Long Term Loan 1.5 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 1.5 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL Ratings has been consistently following up with SJSMPL for
obtaining information through letter and email dated September 9,
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 SJSMPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
SJSMPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of SJSMPL continues to be 'CRISIL D Issuer Not
Cooperating'.
SJSMPL was incorporated in 2004 by Mr. Krishnaswamy and his wife
Mrs. K. Rathinam. The company is engaged in manufacture of cotton
yarn.
MANAPPURAM FINANCE: Fitch Affirms 'BB-' Long-Term IDRs
------------------------------------------------------
Fitch Ratings has affirmed India-based Manappuram Finance Limited's
(MFIN) Long-Term Foreign- and Local-Currency Issuer Default Ratings
(IDRs) at 'BB-'. The Outlook is Stable.
This follows a recent regulatory directive by the Reserve Bank of
India (RBI) instructing MFIN's subsidiary, Asirvad Micro Finance
Limited, and three other non-bank financing entities to cease new
lending. The affirmation reflects Fitch's expectation that the
subsidiary will take the necessary action to remedy the RBI's
findings within a reasonable timeframe, with manageable impact for
MFIN's consolidated credit profile. MFIN holds 97.6% of Asirvad.
Key Rating Drivers
Key Product Line Affected: Asirvad's loans are a key product for
MFIN, accounting for 25% of the latter's consolidated loans in the
financial year ended March 2024 (FYE24). The restrictions apply to
all new lending by Asirvad, whose loan portfolio comprised around
90% in unsecured microfinance and the remaining in gold-backed
loans. The company will continue to service and collect on
outstanding loans.
Prolonged curbs would be detrimental to Asirvad's franchise, asset
quality and profitability, and by extension, negative for MFIN's
credit profile. However, Fitch expects management to remediate the
issues in a timely manner, with manageable spill-over effects to
MFIN's franchise, financial profile and funding access. The bulk of
MFIN's business (53%) remains anchored by its established
gold-lending business.
Moderate Asset Quality Pressure: Fitch believes MFIN will face
greater asset quality pressure through Asirvad, as the restrictions
are likely to adversely affect microfinance borrowers' ability and
propensity to repay their loans. Borrowers in this segment are less
financially sophisticated and could withhold repayment if Asirvad
ceases new lending. Asirvad's gross Stage 3 loan ratio of 4.1% at
FYE24 was higher than MFIN's consolidated Stage 3 loan ratio of
2.5%.
Curbs to Constrain Growth: The regulatory sanction will restrict a
significant driver of MFIN's consolidated loan growth. Non-gold
lending, including unsecured microfinance through Asirvad, has been
the larger driver of group loan growth than gold lending in the
past two years. Microfinance loans grew at a CAGR of 26% over
FYE22-1QFYE25, while MFIN's gold-loan portfolio expanded at a much
slower 7% rate. That said, Fitch expects gold loans to form a
larger share of the loan mix in the near term (1QFY25: 53%)
compared to riskier microfinance.
Profit Contribution to Decline: Fitch expects MFIN to face earnings
headwinds amid slower revenue growth and increased credits costs
within the microfinance operations. Asirvad contributed a
significant 20% of MFIN's consolidated profit in FY24 as yields had
expanded after a sector relaxation over the past two years (FY23:
15%, FY22: 1%). Nonetheless, Asirvad's pretax profit/average assets
(FY24: 5.5%, FY23: 3.7%) remained below MFIN's consolidated
profitability (FY24: 6.8% and FY23: 5.6%), which is supported by
the parent's core gold-lending business.
Rating Incorporates Compliance Risk: The regulatory action cited
material supervisory concerns within the four cited businesses,
including Asirvad's. These mainly related to excessive pricing and
inadequate pricing policies, along with other findings on household
income assessment, loan classification, gold-lending, customer
disclosure and outsourcing practices. The extent to which the other
findings applied to Asirvad were not specified. This is consistent
with Fitch's view that MFIN's corporate governance standards are
weaker those of higher-rated peers due to a record of
non-compliance.
Slower Growth Contains Leverage: Slower overall loan growth should
reduce any upward pressure on MFIN's consolidated leverage. MFIN's
consolidated Tier 1 capital ratio of 27.5% at FYE24 (Asirvad:
18.4%) remained adequately above minimum requirements, and should
provide some room to support its subsidiary, along with the
parent's access to equity capital markets. The consolidated
debt/tangible equity of 3.0x was also moderate, and Asirvad's
leverage of 4.9x at FYE24 should also ease as its loan base runs
down.
Gold-Loan Portfolio Underpins Liquidity: MFIN's asset-liability
maturity (ALM) profile is supported by its majority short-tenor
gold-loan portfolio, while Asirvad's ALM profile is also adequately
matched. The RBI's decision allows Asirvad to maintain loan
collections, which will generate liquidity to meet scheduled debt
repayments. Nonetheless, a rise in borrower repayment delays could
reduce liquidity. Against this, MFIN's consolidated liquidity
buffer, covering six months of debt repayment obligations at
end-September 2024, provides flexibility to support Asirvad, if
needed.
Parent Funding Manageable: Fitch expects MFIN to retain adequate
funding access to back new loan disbursals and portfolio growth.
MFIN has been able to raise funding from multiple channels in the
past several years, including onshore and offshore banks and debt
capital markets. Fitch expects MFIN's funding access to remain
supported by its generally liquid gold-lending portfolio, while
Asirvad's financing needs should be minimal in light of the lending
curtailment.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A failure to remediate Asirvad's business within a reasonable
period, accompanied by spill-over effects that significantly
diminish MFIN's franchise
- Significant weakening in credit quality, such that the
consolidated stage 3 loan ratio exceeds 5.0% (FYE24: 2.5%) for a
sustained period
- A deterioration in the funding and liquidity profile, as
indicated by a sustained lower funding mobilisation or narrowed
liquidity buffers, leading to constraints on MFIN's core business
- Further severe regulatory findings that tarnish MFIN's reputation
and diminish its business franchise and funding access, or other
operational events that result in further significant business
disruption
- Weakened profitability, as indicated by pre-tax profit/average
assets of below 2% (FY24: 6.8%) for a sustained period, or higher
debt/tangible equity exceeding 4.5x (FYE24: 3.0x).
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Positive action is unlikely in the near term in light of the
negative implications of recent events.
In the longer term, positive rating action will be contingent on
evidence of an improved regulatory compliance record, more mature
business franchise in MFIN's non-gold loan segments and a steadier
risk-management record in these segments - provided that
profitability and other financial metrics remain stable and
commensurate with higher ratings.
DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS
The ratings on MFIN's medium-term note (MTN) programme and
foreign-currency senior secured debt are at the same level as its
Long-Term Foreign-Currency IDR. Indian non-bank financial
institutions' (NBFIs) borrowings are typically secured and Fitch
believes non-payment of senior secured debt would best reflect the
uncured failure of the entity. NBFIs can issue unsecured debt in
the overseas market, but such debt is likely to constitute a small
portion of their funding and thus cannot be viewed as their primary
financial obligation.
DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES
Any action on the Long-Term Foreign-Currency IDR will drive similar
action on the ratings on MFIN's US dollar MTN programme and senior
secured debt.
ADJUSTMENTS
The 'bb+' SROE score is above the 'b' implied score for the
following reasons: size and structure of economy (positive) and
economic performance (positive).
The 'bb+' earnings and profitability score is below the 'bbb'
implied score for the following reason: portfolio risk (negative).
The 'bb-' funding, liquidity and coverage score is above the 'ccc'
implied score for the following reason: funding flexibility
(positive).
ESG Considerations
MFIN has an ESG Relevance Score of '4' for Customer Welfare - Fair
Messaging, Privacy and Data Security, due to a history of
customer-related business practices that did not fully comply with
regulatory norms. The score reflects its assessment that
customer-related practices appear weaker than at rated peers,
raising regulatory and reputational risk for MFIN. This has a
negative impact on the credit profile and is relevant to the
ratings in conjunction with other factors.
MFIN has an ESG Relevance Score of '4' for Governance Structure,
due to its history of customer-related business practices that did
not fully comply with regulatory norms. This implies that the
company has gaps in its governance structure. The score reflects
its assessment that governance practices appear weaker than at
rated peers, raising regulatory and reputational risk for MFIN.
This has a negative impact on the credit profile and is relevant to
the ratings in conjunction with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
Manappuram Finance
Limited LT IDR BB- Affirmed BB-
LC LT IDR BB- Affirmed BB-
senior secured LT BB- Affirmed BB-
MRB PATIALA: CRISIL Withdraws D Rating on INR30cr Term Loan
-----------------------------------------------------------
CRISIL Ratings has withdrawn its rating on the bank facilities of
MRB Patiala Storage Private Limited (MRBPSPL) 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
---------- ----------- -------
Term Loan 30 CRISIL D/Issuer Not
Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with MRBPSPL for
obtaining information through letter and email dated October 10,
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 MRBPSPL. 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 MRBPSPL is consistent with 'Assessing Information Adequacy
Risk'. Based on the last available information, CRISIL Ratings has
continued the rating on the bank facilities of MRBPSPL to 'CRISIL D
Issuer not cooperating'.
Incorporated in 2017, MRBPSPL has set up silos for storage of food
grains, and leased them to FCI. The silo, at Alipur village dist.
Patiala, has a storage capacity of 50,000 tonne per annum. Mr Pawan
Bansal, Ms Manisha Goyal, and Ms Ratan Bala are the promoters.
NORTH AMERICAN: Liquidation Process Case Summary
------------------------------------------------
Debtor: North American Mercantile India Pvt. Ltd
Gala No. 12, Jamadas Industrial Estate,
Opp. Jawahar Talkies,
Mulund-West, Mumbai,
Maharashtra, India,400 080
Liquidation Commencement Date: October 14, 2024
Court: National Company Law Tribunal, Mumbai Bench
Liquidator: Palak Swapnil Desai
901, 9th Floor, Park Vistas,
Lallubhai Park Road, Near MTNL,
Andheri (West), Mumbai 400058
Email: palakdesai77@gmail.com
Email: liq.northamerican@gmail.com
Last date for
submission of claims: November 18, 2024
PASHUPATI TEXSPIN: CRISIL Cuts Long/Short Term Ratings to D
-----------------------------------------------------------
CRISIL Ratings has downgraded its ratings on bank facilities of
Pashupati Texspin Export LLP (PTEL) to 'CRISIL D/CRISIL D Issuer
Not Cooperating' from 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Short Term Rating - CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with PTEL for
obtaining information through letters and emails dated September
11, 2023 and October 30, 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 or
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-cooperation 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 PTEL, which restricts the
ability of CRISIL Ratings to take a forward-looking view on the
entity's credit quality. CRISIL Ratings believes the rating action
is consistent with 'Assessing Information Adequacy Risk'.
Based on the latest available information regarding the delays in
term loan repayment, CRISIL Ratings has downgraded its ratings to
'CRISIL D/CRISIL D Issuer Not Cooperating' from 'CRISIL
B/Stable/CRISIL A4 Issuer Not Cooperating'.
PTEL, established in 2017, is promoted by Mr Dakshesh Patel and his
family members. The firm has a unit in Kadi, Gujarat, to
manufacture cotton fabric with installed capacity of 65 lakh tonne
per annum.
RADHE FOODS: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shri Radhe
Foods Product (SRFP) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL D (Issuer Not
Cooperating)
Term Loan 2 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SRFP for
obtaining information through letter and email dated September 9,
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 SRFP, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SRFP
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
SRFP continues to be 'CRISIL D Issuer Not Cooperating'.
SRFP was set up in 2015 as a proprietorship concern by Mr Gopal
Agrawal. The firm processes paddy into non-basmati rice. It has an
installed milling and sorting capacity of 8 tonne per hour in
Gondia, Maharashtra.
RAM MEHER: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Ram Meher
Infradevelopers Private Limited (RMIPL) continue to be 'CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft Facility 1.4 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 5.1 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 5.0 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with RMIPL for
obtaining information through letter and email dated September 9,
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 RMIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RMIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RMIPL continues to be 'CRISIL D Issuer Not Cooperating'.
RMIPL was incorporated in 2009, promoted by Mr Ram Vinod Singh, Mr
Ravi Singhal, Mr Girish Chand Goyal, and Mr Nitish Goyal, based in
Agra. The company undertakes residential real estate development in
this city.
SAINARAYAN PLASTICS: CRISIL Keeps D Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shree
Sainarayan Plastics Private Limited (SSPPL) continue to be 'CRISIL
D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 11.5 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 1.5 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with SSPPL for
obtaining information through letter and email dated September 9,
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 SSPPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SSPPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SSPPL continues to be 'CRISIL D Issuer Not Cooperating'.
Set up in 1986, SSPPL manufactures household items, quality tanks,
cans, containers, pots, buckets, and water tanks. It has a
manufacturing facility in Aurangabad and Pune, Operations are
managed by its directors, Mr. Somnath Sakre and Mr. Santosh
Gangwal.
SANCO INDUSTRIES: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sanco
Industries Limited (SIL) continue to be 'CRISIL D/CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2 CRISIL D (Issuer Not
Cooperating)
Cash Credit 0.6 CRISIL D (Issuer Not
Cooperating)
Cash Credit 18 CRISIL D (Issuer Not
Cooperating)
Cash Credit 8.9 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 13.4 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 5 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 1.1 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with SIL for
obtaining information through letter and email dated September 9,
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 SIL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SIL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SIL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
SIL is a closely-held public limited company, set up in 1986. The
Delhi-based company manufactures PVC wires and cables, and pipes
and pipe fittings. Operations are managed by Mr Sanjay Gupta.
SH INFRATECH: ICRA Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
ICRA has kept the Long-Term rating of SH Infratech Private Limited
(SHIL) in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 1.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long Term- 20.00 [ICRA]D; ISSUER NOT COOPERATING;
Non Fund Rating continues to remain under
Based-Others 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with SHIL, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
SHIL was incorporated in December 2009 and is engaged in civil
construction projects comprising mainly of road construction
activities in Uttar Pradesh. The clients of the firm are mostly
government organizations such as Public Works Departments (PWD).
The directors of the company have been engaged in the civil
construction business for past twenty years through their
proprietorship concern Shakeel haider Engineers and Contractors
(SHEC), rated [ICRA]D. However, all the projects in SHEC are now
complete and the new contracts are bid in the company SHIL.
SITI NETWORKS: Axis Bank Told to Hold INR143cr in Separate Account
------------------------------------------------------------------
Livemint.com reports that the National Company Law Appellate
Tribunal (NCLAT) has ordered Axis Bank Ltd and other creditors of
bankrupt Siti Networks, a subsidiary of Essel Group, to keep INR143
crore in a separate interest-bearing account.
This decision came in response to a challenge to an order from the
National Company Law Tribunal (NCLT) in Mumbai dated October 1
mandating the lenders repay this amount to Siti Networks, which is
currently undergoing insolvency proceedings, Livemint.com says.
Livemint.com relates that NCLAT agreed to hear the lenders'
challenge against the NCLT's ruling but noted the need to protect
Siti Networks' interests by maintaining the funds in a separate
account until a final decision is reached.
"In its ruling, the NCLAT stated that given the appellants are
banks and financial institutions, there should be no apprehension
that they will not reverse the amount into the account of the
corporate debtor if a final decision in the appeal mandates such
action. The interim management will ensure that the interests of
all parties are protected during this process," NCLAT stated in its
order.
According to Livemint.com, the NCLT had ordered the repayment of
INR143 crore to Siti Networks following a petition from Asset
Reconstruction Company (India) Ltd, a creditor that had alleged
that other creditors had unlawfully withdrawn funds from Siti
Networks while a stay on the insolvency proceedings was in effect.
The Mumbai bench of the NCLT, led by Justices Laxmi Gurung and
Charanjeet Singh Gulati, had instructed that all transactions and
appropriations made between March 2023 and August 2023 during the
stay period must be reversed and returned to Siti's account within
four weeks, Livemint.com says.
After taking over the company's operations in August 2023,
resolution professional Rohit Ramesh Mehra discovered that Axis
Bank had withdrawn funds from Siti and distributed about INR143
crore to various lenders, including IndusInd Bank, RBL Bank, Aditya
Birla Finance, and IDBI Bank, despite the stay on proceedings.
About Siti Networks
Siti Networks Ltd, part of Essel group, is an Indian-based
multi-system cable operator. It is engaged in providing cable
television network services, internet services, and allied
services. Its products includes High-Speed Broadband, Digital
Television, Broadband, Local Television Channels, and Electronic
Programming. The company also provides a wide gamut of services
ranging from OTT and High-speed gaming ready services to IoT Ready
Network with security camera and surveillance services to even
business solutions in the ILP & ILL domains.
Siti was admitted to the corporate insolvency resolution process in
February 2023, with Rohit Mehra as the resolution professional.
The National Company Law Appellate Tribunal (NCLAT) halted the
insolvency proceeding in March but reinstated it in August 2023.
SOFYX SYSTEMS: Voluntary Liquidation Process Case Summary
---------------------------------------------------------
Debtor: Sofyx Systems Private Limited
Sub 153, Summit DLF City, Ph-V,
Gurgaon Haryana-122011
Liquidation Commencement Date: October 18, 2024
Court: National Company Law Tribunal, New Delhi Bench
Liquidator: Arun Gupta
S-34, LGF, Greater Kailash-II,
New Delhi-110048
Email: arungupta2211@gmail.com
Email: sofyx.vol.liq@gmail.com
Telephone: 011-41066313
Last date for
submission of claims: November 17, 2024
SRINIVASA SPINTEX: ICRA Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
ICRA has kept the Long-Term ratings of Sri Srinivasa Spintex
(India) Limited (SSSIL) in the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 55.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term- 63.95 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long Term- 2.83 [ICRA]D; ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain under
'Issuer Not Cooperating'
Category
Long-term 2.47 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with SSSIL, ICRA has been trying to seek information from the
entity so as to monitor its performance Further, ICRA has been
sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Sri Srinivasa Spintex (India) Limited (SSSIL) was incorporated in
July 2006 and is engaged in manufacturing of grey cotton spun yarn.
The company has a spinning mill at Tadepalligudem in West Godavari
district of Andhra Pradesh (A.P.). SSSPL started commercial
production of yarn in August 2008 with 4,000 spindles which was
increased gradually to 18,000 spindles in January 2009, 42,480
spindles in January 2011 and 55,440 spindles from mid-June 2012.
SVS CONSTRUCTIONS: ICRA Keeps B Debt Rating in Not Cooperating
--------------------------------------------------------------
ICRA has kept the Long-Term rating of Svs Constructions in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 25.00 [ICRA]B (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Svs Constructions, ICRA has been trying to seek information
from the entity so as to monitor its performance. Further, ICRA has
been sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
M/s SVS Constructions was incorporated in the year 2012 as a
partnership firm with Mr. R Rajasekhar Reddy and Mrs. R Laksmi
Prasanna as partners. The entity is into the business of real
estate development and has completed four residential projects in
Bangalore since its inception. The promoters have long experience
in the field of real estate development and construction through
other group concerns. Presently, the company is engaged in
execution of a residential apartment project, "Trend square
Precioso" at Kalkere, Horamavu, Bangalore. Started in August 2016,
the project is spread across 1.82 acres of land parcel and houses
140 apartments with an aggregate super built up area of 1,57,035
sqft.
THERDOSE PHARMA: ICRA Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings of Therdose
Pharma Private Limited (TPPL) in the 'Issuer Not Cooperating'
category. The ratings are denoted as "[ICRA]D; ISSUER NOT
COOPERATING/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 7.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term- 5.47 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating continues to remain under
Term Loan 'Issuer Not Cooperating'
category
Long Term/ 9.53 [ICRA]D; ISSUER NOT COOPERATING/
Short Term- [ICRA]D; ISSUER NOT COOPERATING;
Unallocated Rating continues to remain under
'Issuer Not Cooperating'
category
Short Term- 3.00 [ICRA]D; ISSUER NOT COOPERATING;
Non Fund Rating continues to remain under
Based-Others 'Issuer Not Cooperating'
category
As part of its process and in accordance with its rating agreement
with TPPL, ICRA has been trying
to seek information from the entity so as to monitor its
performance Further, ICRA has been sending repeated reminders to
the entity for payment of surveillance fee that became due. Despite
multiple requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Therdose Pharma Pvt. Ltd. (TPPL) was incorporated in 2003 in the
name of Oshadha Therapeutical Private Limited in the owned premises
in Hyderabad. In 2005, the company's name was changed to Therdose
Pharma Private Limited (TPPL). The manufacturing unit cum
administration office of the company is situated in Hyderabad. The
company is engaged in drug development and contract research, scale
up and technology transfer, manufacturing of oncology and
non-oncology formulations. Until August 2014, TPPL was subsidiary
of Scidose LLC, U.S. and later became an Indian company. The
company has capacity to manufacture 0.12 crore oncology sterile
injections, and 1.85 crore oncology oral solids per annum.
TRIVENI ENTERPRISES: ICRA Keeps B+ Debt Rating in Not Cooperating
-----------------------------------------------------------------
ICRA has kept the long-term rating for the bank facilities of
Triveni Enterprises in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 6.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Triveni, ICRA has been trying to seek information from the
entity so as to monitor its performance. Further, ICRA has been
sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Triveni Enterprises (Triveni) was established by late Mr. O. P.
Agarwal in 1968 to engage in the trading of iron andsteel products.
Currently, the firm is owned and managed by his wife Mrs. Suchita
Agarwal and his son Mr.Ashirwad Agarwal. The firm buys and sells
products ranging from angles, beams, channels, squares, rounds,
flats,plates, sheets etc which are extensively used in
construction, automobile and engineering segment. The firm
alsoprovides various services like slitting, cutting, de-coiling
and straightening at its warehousing facility located at Bangalore
(Karnataka) spread across 17 acres of land. The firm is ISO
9001:2008 certified.
UNIQUE MALLS: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Unique Malls
Private Limited (UMPL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 18.0 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 169.5 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with UMPL for
obtaining information through letter and email dated September 17,
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 UMPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on UMPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
UMPL continues to be 'CRISIL D Issuer Not Cooperating'.
UMPL was incorporated in August 2005 by the Future group to focus
on mall management activities, management and development of space
for out-of-home media, and to support the group's retail
businesses. The company is held entirely by the Future group
through FMNL and nine other entities. FMNL, through its 37.65%
shareholding, has de-facto control of UMPL.
V. S. COTTON: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of V. S. Cotton
Industries (VSC) continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.0 CRISIL D (Issuer Not
Cooperating)
Proposed Rupee 0.36 CRISIL D (Issuer Not
Term Loan Cooperating)
Term Loan 2.64 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with VSC for
obtaining information through letter and email dated September 9,
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 VSC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VSC
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
VSC continues to be 'CRISIL D Issuer Not Cooperating'.
For arriving at the rating, CRISIL Ratings has combined the
business and financial risk profiles of RSV Cotton Industries (RSV)
and VSC. This is because the two entities, together referred to as
the Kakad group, are under a common management and in similar lines
of business, and have significant financial linkages.
About the Group
RSV, a partnership firm set up by Mr. Vivek Kakad, Mr. Abdul
Qureshi, and Mr. Mohammed Shafikur Rehman in 2013, gins and presses
cotton. The firm commenced operations in November 2013. Its
manufacturing facilities are at Anjangaon in Amravati,
Maharashtra.
VSC, a partnership firm set up by Mr. Sudhakar Kakad and Mr.
Mohammed Ziya Mansuri in 2012, also gins and presses cotton. It
commenced operations in February 2013. Its manufacturing facilities
are at Murtizapur in Akola, Maharashtra.
The daily operations of both entities are managed by Mr. Sudhakar
Kakad and Mr. Vivek Kakad. The Kakad family has been in the
business of cotton trading for more than a decade.
VAIDYANATH SAHAKARI: CRISIL Keeps D Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Vaidyanath
Sahakari Sakhar Karkhana Limited (VSSKL) continue to be 'CRISIL
D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.73 CRISIL D (Issuer Not
Cooperating)
Cash Credit 81.96 CRISIL D (Issuer Not
Cooperating)
Short Term Loan 28.37 CRISIL D (Issuer Not
Cooperating)
Term Loan 7.63 CRISIL D (Issuer Not
Cooperating)
Term Loan 25.97 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with VSSKL for
obtaining information through letter and email dated September 9,
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 VSSKL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VSSKL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
VSSKL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
VSSKL, set up as a co-operative society in 1996, manufactures
sugar. Its unit is in Parali, Maharashtra, and has sugar cane
crushing capacity of 4500 tonne per day. It also has a
60-kilolitre-per-day distillery and a 21-megawatt co-generation
power unit.
VEDANTA RESOURCES: Moody's Ups CFR to B3 & Unsecured Bonds to Caa1
------------------------------------------------------------------
Moody's Ratings has upgraded the corporate family rating of Vedanta
Resources Limited (VRL) to B3 from Caa1.
Concurrently, Moody's have upgraded to Caa1 from Caa2 the rating on
the senior unsecured bonds issued by VRL and VRL's wholly-owned
subsidiary Vedanta Resources Finance II Plc, which are guaranteed
by VRL.
Moody's have maintained the stable outlook on the ratings.
RATINGS RATIONALE
The upgrade to B3 is driven by VRL's demonstrated access to
funding, reflected by the successful tap of $300 million of its
10.875% senior notes due in September 2029. The tap and the
company's $900 million issuance last month were oversubscribed by
investors.
The proceeds from the tap will be applied toward the partial
repayment, at par, of the company's $608 million December 2028
notes. Moody's do not consider this as a distressed exchange
because (1) it does not serve as a means to avoid default, given
that the bond is due almost three years from now; and (2) it does
not result in an economic loss for investors because the bonds are
offered to be repurchased at their full value.
VRL's next bond maturity is a $600 million bond due in April 2026.
A springing covenant as part of its debt restructuring in January
2024 requires VRL to refinance this maturity by December 2025,
failing which the amended bonds that were restructured would mature
in April 2026. Moody's expect VRL to address the April 2026 bond
maturity in a timely manner, especially given its recent track
record of tapping the USD bond markets.
VRL's recent liabilities management exercise – which entailed
debt reduction and refinancing using proceeds from the bond
issuance, dividends from subsidiaries as well as stake sales in
subsidiaries – have resulted in paring down its debt and easing
some of its liquidity pressure.
The B3 CFR reflects VRL's large-scale and diversified low-cost
operations; exposure to a wide range of commodities such as zinc,
aluminum, iron ore, oil and gas, steel and power; strong position
in key markets, enabling it to command a pricing premium; and
history of relative margin stability through commodity cycles.
However VRL's ratings are constrained because of its complex
organizational structure, weak financial management and liquidity.
VRL's senior unsecured bonds are rated Caa1, one notch lower than
the B3 CFR, reflecting Moody's view that bondholders are in a
weaker position relative to the operating subsidiaries' creditors.
The one-notch differential reflects the legal and structural
subordination of the holding company's bondholders to those of the
rest of the group. Moody's estimate the operating company's claims
are around 75% of total consolidated claims as of March 2024, with
the remaining claims distributed across VRL and its intermediate
holding companies that have a direct shareholding in VDL.
OUTLOOK
The rating outlook is stable, reflecting Moody's expectation that
VRL will address its debt maturities, in particular its next bond
maturity in April 2026, in a timely manner, especially given its
recent track record of tapping the USD bond markets.
LIQUIDITY
VRL is a pure holding company with all of its operations held at
various subsidiaries and step-down subsidiaries. VRL's liquidity
remains weak, given its debt maturities and interest-servicing
needs.
The holding company will likely receive around $300 million
annually in the form of management and brand fees from its
operating subsidiaries. However, any other cash movements from its
operating subsidiaries may be in the form of dividends, entailing
leakage given the presence of minority shareholders. As of June
2024, its operating subsidiaries held $2 billion in cash, down from
$4.2 billion at March 2022.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
A further upgrade of VRL's ratings would require a substantial
improvement in its liquidity profile as well as prudent liability
and financial management. Specific credit metrics indicative of a
B2 CFR include adjusted debt/EBITDA below 5.0x and EBIT/interest
coverage above 1.5x, both on a sustained basis.
Conversely, downgrade pressure could emerge if commodity prices
soften substantially and reduce VRL's EBITDA and free cash flow
generation, causing a sustained weakening in its credit metrics,
with its adjusted debt/EBITDA above 6.0x and EBIT/interest coverage
below 1.0x.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Mining
published in October 2021.
COMPANY PROFILE
Vedanta Resources Limited (VRL) is headquartered in London and is a
diversified resources company with interests mainly in India. Its
main operations are held by Vedanta Limited (VDL), a 56.4%-owned
subsidiary. Through VRL's various operating subsidiaries, the group
produces oil and gas, zinc, lead, silver, aluminum, iron ore, steel
and power. In September 2023, VDL announced its demerger into six
separate listed entities, subject to the relevant approvals. Its
shareholders will receive one share in each of the six companies
upon the demerger's completion, while VDL and the six companies
will have the same shareholding; i.e. VRL will hold a 56.4% stake
in VDL and the six new companies.
VRL delisted from the London Stock Exchange in October 2018 and is
now wholly owned by Volcan Investments Ltd. VRL's founder and
chairman Anil Agarwal and his family are Volcan's key shareholders.
For the fiscal year ended March 2024, VRL generated revenues of
$17.1 billion and an adjusted EBITDA of $4.9 billion.
VELAMMAL EDUCATIONAL: ICRA Keeps D Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has kept the Long-Term ratings of Velammal Educational Trust
in the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 105.50 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term- 377.39 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating continues to remain under
Term Loan 'Issuer Not Cooperating'
category
Long Term 122.39 [ICRA]D; ISSUER NOT COOPERATING;
Unallocated Rating continues to remain under
'Issuer Not Cooperating'
category
As part of its process and in accordance with its rating agreement
with Velammal Educational Trust, ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Established in 1986 by Mr. MV Muthuramalingam, Velammal group of
trusts operate over 50 educational institutions including schools,
engineering colleges medical college and hospital and has total
student strength of over 1,00,000. The schools and colleges of the
trust are spread across Tamil Nadu in various districts including
Thiruvallur, Kancheepuram, Sivagangai, Madurai, Theni & Karur
marking a strong foothold in TN in the education space. Currently,
the educational institutions are run under seven trusts and one
private limited company – Velammal Educational Trust (VET),
Velammal Chennai Educational Trust (VCET), Velammal Madurai
Educational Trust (VMET), Veeramakali Memorial Welfare Trust
(VMWT), Ramana Educational Trust (RET), Vallimuthu Educational
Trust, Muthuramalingam Kuncharavalli Educational Trust (MKET),
Learnvel Private Limited.
VEMPARALA VENKAT: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Vemparala
Venkat Rao Cotton Industries (VVR) continue to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.40 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 0.65 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 1.95 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with VVR for
obtaining information through letter and email dated September 09,
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 VVR, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VVR
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
VVR continues to be 'CRISIL D Issuer Not Cooperating'.
VVR was established in 2012 as a partnership firm by Mr V Ram Babu
and his family members. The firm gins and presses raw cotton. Its
facility is in Guntur, Andhra Pradesh.
VENUS ROLLING: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Venus Rolling
Mills Private Limited (VRMPL) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.2 CRISIL D (Issuer Not
Cooperating)
Cash Credit 25.0 CRISIL D (Issuer Not
Cooperating)
Term Loan 0.8 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with VRMPL for
obtaining information through letter and email dated September 9,
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 VRMPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VRMPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
VRMPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
VRMPL was set up by Mr Yatendra Singh Pawar in 2005. The company
manufactures mild steel angles of various sizes, used in the
construction and power transmission sectors.
VISWAM EDUCATIONAL: CRISIL Keeps D Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Viswam
Educational Society (VES) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 4.15 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 0.81 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 0.04 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Secured Overdraft 4.00 CRISIL D (Issuer Not
Facility Cooperating)
CRISIL Ratings has been consistently following up with VES for
obtaining information through letter and email dated September 09,
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 VES, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VES
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
VES continues to be 'CRISIL D Issuer Not Cooperating'.
VES, a society was established in 1991, and the overall operations
of the trust are being managed by its secretary Mr. Prabhakar
Reddy. It runs 5 educational institutions under the Viswam brand.
Its schools and colleges are located in and around Chittoor (Andhra
Pradesh).
VTJ SEA: CRISIL Keeps D Debt Ratings in Not Cooperating Category
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of VTJ Sea Foods
continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 4.00 CRISIL D (Issuer Not
under Letter of Cooperating)
Credit
Packing Credit 4.25 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 4.25 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with VTJ for
obtaining information through letter and email dated September 9,
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 VTJ, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VTJ
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
VTJ continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Established in 2001 as a proprietorship firm, VTJ is engaged in
processing and exporting of seafood products. Based out of Kochi
(Kerala), the firm is promoted by Mr. Raju J Vayalat.
=================
I N D O N E S I A
=================
SRI REJEKI: Indonesian Gov't. Vows to Save 50,000 Jobs
------------------------------------------------------
Bloomberg News reports that the Indonesian government pledged that
the bankruptcy of PT Sri Rejeki Isman (Sritex) would not lead to
layoffs for the roughly 50,000 workers employed by the textile
giant.
"I assure you that there will be no layoffs of Sritex workers,"
Bloomberg quotes Deputy Minister of Manpower Immanuel Ebenezer
Gerungan as saying during his visit to the company's factory in
Sukoharjo, Central Java on Oct. 28. "This was agreed by the
management represented by Sritex owner Iwan Setiawan Lukminto."
The Indonesian clothing maker has no intention of closing its
factory and is focusing on continuing operations as its business
and financial conditions have shown signs of recovery over the past
few years, Lukminto was quoted as saying in the manpower ministry's
statement on Oct. 29, Bloomberg relays.
The official visit follows Sritex's bankruptcy ruling by a local
court last week, two years after the company reached a debt
restructuring agreement with its creditors, Bloomberg notes. The
company, which has sewn clothes for global brands including H&M,
Uniqlo and Zara, fell into debt distress during the pandemic after
orders slumped.
According to Bloomberg, President Prabowo Subianto has called on
relevant ministries to work out solutions to save one of
Indonesia's largest textile manufacturers. The woes extend beyond
Sritex though. Domestic garment associations have demanded more
government support to revive the sector, which has slumped since
the pandemic and has been hit by a flood of cheap imports, mainly
from China.
Despite the reintroduction of some safeguard and anti-dumping
duties, industry players are also asking the government to tighten
recently revised import regulations to curb a surge in shipments,
adds Bloomberg.
PT Sri Rejeki Isman Tbk is a textiles and garments producer. The
Company produces yarns, textiles, uniforms, and fashion clothes
through its spinning, weaving, dyeing/printing, and garmenting
processes.
The Semarang Commercial Court on Oct. 21, 2024, declared Sri Rejeki
Isman (Sritex) and four key subsidiaries bankrupt after a creditor
nullified a prior debt restructuring deal. Sritex has filed for
cassation and assured stakeholders that operations will remain
unaffected, according to Jakarta Globe.
===============
M A L A Y S I A
===============
1MDB: Malaysia Court Orders Najib Razak to Defend More Charges
--------------------------------------------------------------
Bloomberg News reports that Malaysia's High Court ordered former
premier Najib Razak to defend himself against corruption and money
laundering charges related to the sovereign wealth fund 1MDB, in a
fresh blow to the politician who's already in jail over the
scandal.
According to Bloomberg, the charges leveled against Najib are valid
and the prosecution has established a case against him, Justice
Collin Lawrence Sequerah told a courtroom in Kuala Lumpur on Oct.
30. He also found all prosecution witnesses - which included former
Malaysian central bank governor Zeti Akhtar Aziz - to be credible.
Bloomberg relates that the court decision shows Najib's
longstanding legal troubles are far from over, even after Prime
Minister Anwar Ibrahim welcomed a public apology from him. The
71-year-old Najib was accused in 2018 of four counts of abusing his
position to obtain MYR2.3 billion ($524 million) of 1MDB funds
while in power. He's also accused of 21 counts of money
laundering.
Najib's cases are a political headache for Anwar, who must balance
competing interests to stay in power, Bloomberg says. The jailed
former leader retains significant influence in the United Malays
National Organisation party, which is part of Anwar's coalition
government formed after a hung parliament in 2022. But any
concessions made to Najib could weaken the prime minister's
credibility and support base. Anwar has denied interfering in the
court cases.
Justice Sequerah said in his judgment on Oct. 30 that Najib was in
a prime position to exercise control over 1MDB, Bloomberg reports.
Najib had also been warned multiple times that something may be
amiss, he said. Najib, in his response to the decision, said he
would defend himself against the charges.
"We feel extremely disappointed," Najib's lawyer, Shafee Abdullah,
later told reporters outside the courthouse. "But we are not giving
up, we are going to fight this case and we are more determined
because of this decision."
The trial will resume Dec. 2, and the defense plans to call up 11
witnesses, he said.
Bloomberg notes that the former premier remains behind bars for
separate crimes related to 1MDB. He has sought to serve the rest of
his jail sentence at home after it was halved to six years in
January by a royal pardon, though a Malaysian court dismissed his
petition.
He apologized in a letter last week for allowing the scandal to
unfold while he was prime minister, but denied any criminal
involvement in the scheme, Bloomberg relays. He also said he didn't
realize money sent to his bank accounts came from 1MDB funds.
"I am still in deep shock knowing now the extent of the wretched
and unconscionable shenanigans, and illegal things that happened in
1MDB," he said in the letter read out by his son. "I deeply regret
what has taken place."
About 1MDB
Kuala Lumpur-based 1Malaysia Development Bhd (1MDB) is an insolvent
Malaysian strategic development company, wholly owned by the
Malaysian Minister of Finance. 1MDB was established in 2009 to
foster long-term economic development for the country by forging
global partnerships, particularly in energy, real estate, tourism,
and agribusiness.
The Company was founded shortly after Dato Sri Najib Razak became
Prime Minister of Malaysia in July 2009. Najib said the
establishment of 1MDB into a federal entity was to benefit a
majority of Malaysians.
1MDB is said to have raised billions of dollars in bonds, for
investment projects and joint ventures, between 2009 and 2013.
Among those projects are the Tun Razak Exchange, Tun Razak
Exchange's sister project Bandar Malaysia, and the acquisition of
three independent power producers.
The Company came into heavy scrutiny in 2015 for suspicious money
transactions and evidence pointing to money laundering, fraud and
theft. The corruption scandal in 1MDB has implicated high-level
officials, including Prime Minister Najib Razak, as wells as banks
and financial institutions around the world.
In 2016, the U.S. Department of Justice filed a lawsuit, alleging
that at least US$3.5 billion has been stolen from 1MDB. In
September 2020, the alleged amount stolen had been raised to US$4.5
billion and a Malaysian government report listed 1MDB's outstanding
debts to be US$7.8 billion.
Malaysia has been filing lawsuits over the years in an effort to
recover the missing billions of dollars. Among others, in May
2021, Malaysia filed 22 civil suits against entities and people
involved in the corruption scandal, including units of Deutsche
Bank and JP Morgan.
Malaysia said in September 2020 it has so far recovered about
US$3.24 billion in assets linked to the 1MDB matter. This amount
includes about US$600 million cash and assets returned by U.S.
authorities; about US$2.5 billion paid by Goldman Sachs as
settlement; as well as US$780 million in settlement amounts from
Malaysian banking group AmBank and audit firm Deloitte.
=====================
N E W Z E A L A N D
=====================
HENDERSON ONE: Court to Hear Wind-Up Petition on Nov. 7
-------------------------------------------------------
A petition to wind up the operations of Henderson One Piece Trustee
Limited (formerly Ardmore Trustee No 8 Limited) will be heard
before the High Court at Auckland on Nov. 7, 2024, at 11:45 a.m.
Auckland Council filed the petition against the company on April 9,
2024.
The Petitioner's solicitor is:
Kirstin Margaret Wakelin
135 Albert Street
Auckland
KOHIMARAMA DEVELOPMENTS: Placed in Receivership
-----------------------------------------------
Thomas Lee Rodewald of Rodewald Consulting on Oct. 29, 2024, was
appointed as receiver and manager of Kohimarama Developments
Limited.
The Receiver and Manager may be reached at:
Thomas Lee Rodewald
Rodewald Consulting Limited
Level 1, The Hub
525 Cameron Road (PO Box 15543)
Tauranga 3144
NONI B: First Creditors' Meeting Set for Nov. 7
-----------------------------------------------
A first meeting of the creditors in the proceedings of Noni B
Holdings NZ Limited will be held on Nov. 7, 2024, at 3:00 p.m. via
Zoom.
David McGrath and Vaughan Strawbridge of FTI Consulting were
appointed as administrators of the company on Oct. 28, 2024.
R-LITS CONTRACTING: Placed Into Liquidation; Owes More Than NZD7MM
------------------------------------------------------------------
Stuff.co.nz reports that a labour hire company that survived three
winding up orders has gone bust owing more than NZD7 million to
creditors, the liquidator said.
And legal action against people associated with the firm is a
possibility, he said.
Liquidator Anthony Pullan, the Official Assignee, told Stuff the
Inland Revenue Department (IRD) put Auckland-based R-Lits
Contracting into liquidation on October 7 with a reported debt of
NZD7.3 million, but the company may also owe money to its 180
employees and others.
R-Lits' sole shareholder and director is Northland man Raymond
Bishop, but his sons Roy and Spencer have both been involved in the
company.
According to Stuff, Mr. Pullan said the Bishops "are being hard to
track down". "We have had no cooperation from them to date," he
said.
The Bishops deny that claim. They told Stuff they'd paid most
creditors, had put forward a repayment plan to the IRD and had
assisted a receiver who had been appointed in tandem with the
liquidator.
Both Roy - who has been bankrupted twice and convicted of fraud -
and Spencer were separately banned this year from acting as company
directors until 2031, Stuff notes. Both brothers and their father
have a history of involvement in companies liquidated with
substantial debts.
Stuff relates that Mr. Pullan said there was the possibility of
legal action against people associated with the company.
"There are a lot of suggestions that there is offending happening
here which will lead to a referral to the Registrar of Companies,"
Stuff quotes Mr. Pullan as saying. "As liquidator, we don't
prosecute ourselves, but the Registrar of Companies has that duty.
In terms of recoveries, as information comes to light, we will be
exploring all options. But in terms of physical assets, I don't
think there is much, which does make any quick dividend or payout
quite hard."
Mr. Pullan said there was evidence that Spencer Bishop had been
acting as the company's director despite his banning order.
"The dad is listed as the director but early information suggests
that at least Spencer Bishop was managing, and he's a banned
director," Mr. Pullan said.
He said there was a Companies Act provision that someone breaching
a banning order could be held personally liable for a company's
debts, Stuff relays. "So it's about building the case saying he's
the director, and having a look at the merits behind that - and are
there assets in his name, or have they gone elsewhere."
Both Spencer and Roy Bishop denied that Spencer was in a management
role. Roy told Stuff it was "simply not true at all". Spencer
agreed, saying: "R-Lits Contracting was not under my managerial
control."
The Companies Registrar refused an interview and to answer Stuff's
questions, instead providing a statement from Integrity and
Enforcement manager Vanessa Cook, which said the registrar "may
commence an investigation should evidence of any serious problems
be identified in the course of the liquidation".
SELETTI NEW ZEALAND: Court to Hear Wind-Up Petition on Nov. 7
-------------------------------------------------------------
A petition to wind up the operations of Seletti New Zealand Limited
will be heard before the High Court at Invercargill on Nov. 7,
2024, at 11:45 a.m.
Comptroller of Customs filed the petition against the company on
Sept. 13, 2024.
The Petitioner's solicitor is:
Philip Vance Shackleton
Meredith Connell
Level 7
8 Hardinge Street
Auckland
YLG TRADE: Court to Hear Wind-Up Petition on Dec. 6
---------------------------------------------------
A petition to wind up the operations of YLG Trade Limited will be
heard before the High Court at Auckland on Dec. 6, 2024, at 10:00
a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Oct. 8, 2024.
The Petitioner's solicitor is:
Hosanna Tanielu
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
=================
S I N G A P O R E
=================
CAPTAIN K: Court Enters Wind-Up Order
-------------------------------------
The High Court of Singapore entered an order on Oct. 18, 2024, to
wind up the operations of Captain K F&B Management Pte. Ltd.
Maybank Singapore Limited filed the petition against the company.
The company's liquidator is:
Gary Loh Weng Fatt
BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
DAI LOU: Court to Hear Wind-Up Petition on Nov. 15
--------------------------------------------------
A petition to wind up the operations of Dai Lou Pte. Ltd. will be
heard before the High Court of Singapore on Nov. 15, 2024, at 10:00
a.m.
Maybank Singapore Limited filed the petition against the company on
Oct. 22, 2024.
The Petitioner's solicitors are:
M/s Advent Law Corporation
111 North Bridge Road
#25-03 Peninsula Plaza
Singapore 179098
FOODSTUFFS SUPPLY: Court Enters Wind-Up Order
---------------------------------------------
The High Court of Singapore entered an order on Oct. 18, 2024, to
wind up the operations of Foodstuffs Supply Pte. Ltd.
Maybank Singapore Limited filed the petition against the company on
Sept. 23, 2024.
The company's liquidator is:
Gary Loh Weng Fatt
BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
GIN LIN: Court Enters Wind-Up Order
-----------------------------------
The High Court of Singapore entered an order on Oct. 18, 2024, to
wind up the operations of Gin Lin Pte. Ltd.
Maybank Singapore Limited filed the petition against the company.
The company's liquidator is:
Gary Loh Weng Fatt
BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
LIPPO MALLS: Fitch Affirms Then Withdraws 'CCC+' Long-Term IDR
--------------------------------------------------------------
Fitch Ratings has affirmed Lippo Malls Indonesia Retail Trust's
(LMIRT) Long-Term Issuer Default Rating (IDR) at 'CCC+', and the
'CCC-' long-term rating and 'RR6' Recovery Rating on the trust's
USD22.6 million unsecured notes due February 2026. All the ratings
have also been withdrawn.
LMIRT's IDR reflects its limited liquidity and weak debt access in
the next 18 months to fund the necessary asset refurbishments after
servicing debt, leading to a depletion in the trust's cash balance.
The 'CCC-'/'RR6' rating on LMIRT's unsecured notes, which is two
notches below the trust's IDR, reflects significantly lower
recovery prospects following a July 2024 tender offer, which saw
prior-ranking onshore secured debt rise to above 95% of total
debt.
Fitch has withdrawn the ratings due to commercial reasons. Fitch
will no longer provide ratings or analytical coverage for LMIRT.
Key Rating Drivers
Tight Liquidity: Following the tender offer in July 2024, the trust
had SGD29.9 million in cash on hand, of which SGD14.6 million was
restricted cash, which can be used to service onshore bank debt,
but will need to be replenished to avoid an event of default on its
loans. Fitch estimates LMIRT's operating cash flow will be
insufficient to meet capex in the next 18 months after debt
servicing, leading to a decline in cash on hand to around SGD13
million by end-2025 unless some capex is deferred.
The trust plans to spend around SGD48 million to refurbish a total
net lettable area of 163,550 sq m in 2024-2025, mainly to repurpose
vacated spaces by anchor tenants, including Carrefour and
Hypermart, in a bid to improve the occupancy and valuation of its
malls. Fitch forecasts LMIRT's cash flow will meet interest costs,
as well as the amortisation of onshore term loans of SGD6.2 million
in 2024 and SGD24 million in 2025, helped by its longer debt
duration after its bond tender offer in July 2024.
Weak Access to Capital: LMIRT's ability to draw on new debt to fund
capex is constrained by its high regulatory gearing ratio
(debt/assets) of 44.96% as of 30 June 2024, compared to the 45%
limit. Fitch believes LMIRT has pledged most of its
better-performing malls with a Hak Guna Bangunan (HGB) land title
and strata malls, following the increase of its secured loan
facility to IDR4.5 trillion (SGD372 million) in June 2024 to fund
the tender offer.
The remaining unencumbered assets are mainly malls with land titles
under agreement-based schemes, which are difficult to mortgage.
This constrains the trust's ability to raise further secured debt.
Subdued Operational Performance: Fitch forecasts net property
income (NPI) of around SGD120 million in 2024, lower than in 2022
and 2023, due to the recent rupiah depreciation against the
Singapore dollar. Operating performance improved slightly in rupiah
terms on positive rent reversions of 8.3% in 2Q24, despite flattish
occupancy of 79.9%. However, NPI in rupiah terms moderated as
operating expenses rose. The trust may face challenges in raising
occupancy significantly in the next 12-18 months given the
difficulty in funding asset refurbishments, which could weigh on
medium-term cash flow growth.
Foreign-Exchange Risk to Ease: The tender offer to repurchase
LMIRT's US dollar notes using rupiah-denominated bank loans has
reduced LMIRT's foreign-currency risk on interest coverage and
regulatory gearing. Following the tender offer, the mix of
rupiah-denominated debt rose to above 95%.
Floating-Rate Debt Structure: Fitch forecasts funds flow from
operations fixed-charge coverage to bottom out at 1.3x in 2024
before improving from 2025 due to higher expected EBITDA and lower
interest rates. Fitch expects Indonesia's policy interest rate to
decrease to 5.75% by end-2024 and 5% by end-2025 from 6% at
end-2023. Following successive tender offers, virtually all of the
trust's debt is now based on floating interest rates. Fitch has
assumed LMIRT will continue to opt out of paying distributions on
its perpetual securities.
Perpetual Securities Treated as Equity: Fitch treats LMIRT's SGD260
million in perpetual securities, issued in 2016 and 2017, as 100%
equity due to strong going-concern and gone-concern loss absorption
features. This also factors in LMIRT's intention to maintain the
securities as a permanent part of its capital structure. The trust
did not call the SGD140 million and SGD120 million securities
callable in 2021 and 2022, respectively, amid weak market
sentiment. The trust has cancelled the perpetuals' coupons to
preserve cash since March 2023, which has prevented it from paying
common dividends.
Derivation Summary
LMIRT's rating is comparable with those of Indonesia-based property
developers PT Lippo Karawaci Tbk (LPKR, B-/Positive) and PT Kawasan
Industri Jababeka Tbk (KIJA, B-/Stable).
LMIRT is rated one-notch lower than LPKR given the trust's tight
liquidity while LPKR's rating, which was upgraded by one notch
recently, reflects its improving liquidity profile following plans
to deleverage using proceeds from the sale of a stake in its
healthcare subsidiary. Deleveraging will lead to LPKR's free cash
flow turning positive, as the interest cost burden is reduced,
driving the Positive Outlook. In contrast, Fitch believes LMIRT's
cash reserves may be depleted to fund capex in the next 12 months,
or it will have to delay the expenditure as it has limited room to
raise new debt amid regulatory limitations, which will in turn
weigh on its operating cash flow growth.
LMIRT is rated one notch below KIJA. KIJA does not have any
material maturities in the next three years after its US dollar
bonds were extended to end-2027, compared with LMIRT's USD22
million in unsecured notes due February 2026. Fitch expects KIJA to
have adequate liquidity and to maintain neutral-to-positive free
cash flow and adequate access to domestic banks to fund capex and
construction. Improving non-development cash flow from its power
plant, dry port and estate-management services is sufficient to
cover interest expense and yearly bank loan amortisations over the
next three years.
Key Assumptions
Fitch's Key Assumptions Within Its Rating Case for the Issuer:
- NPI, including from Lippo Mall Puri, of SGD121 million in 2024
and SGD128 million in 2025.
- Capex of SGD28 million in 2024 and SGD17 million in 2025.
- No dividend payout or perpetual coupon distributions in 2024 and
2025.
Recovery Analysis
Recovery Analysis Assumptions:
Fitch assumes LMIRT will be liquidated in a bankruptcy rather than
continue as a going-concern, as Fitch believes creditors are likely
to maximise recoveries by selling the trust's investment
properties.
- Fitch calculates a liquidation value under a distressed scenario
of SGD0.6 billion at end-June 2024.
- Fitch uses stressed capitalisation values to arrive at the
distressed valuation for LMIRT's investment properties. Fitch uses
an 11% capitalisation rate as a reference, above the average 10%
capitalisation rate of the most recent divestments and acquisitions
in 2020. This is due to the portfolio's weaker performance since
then and challenging recovery prospects. Fitch applies the
capitalisation rate to its estimated NPI for the 12 months to
end-June 2024 from LMIRT's Hak Guna Bangunan and strata malls only,
as Fitch believes there is higher execution risk in selling malls
with agreement-based scheme land titles.
- The estimate also reflects its assessment of the value of trade
receivables under a liquidation scenario, with a 75% advance rate.
Fitch has assumed that a 25% discount is sufficient to cover
potential bad debt.
These assumptions result in a recovery rate corresponding to a
Recovery Rating of 'RR6' for the outstanding senior unsecured
bonds.
RATING SENSITIVITIES
Not applicable as the ratings have been withdrawn.
Liquidity and Debt Structure
Tight Liquidity, Financial Access: Fitch expects LMIRT's cash on
hand to reduce in the next 12 months as the trust will not be able
to fund its planned capex using operating cash flow after servicing
debt. LMIRT has pledged most of its better-quality properties to
existing lenders, which limits its financial flexibility even if
the regulatory debt headroom improves below the 45% threshold in
the next few years amid the amortisation of existing loans. This
raises refinancing risks on the USD22.6 million unsecured notes due
in February 2026.
After the July 2024 tender offer, LMIRT has restricted cash of
SGD14.6 million in debt-servicing reserves, which can be used to
service bank debt in the event its cash flow falls short. However,
the reserves will need to be replenished to avoid an event of
default.
Issuer Profile
LMIRT is a Singapore-listed real-estate investment trust with a
portfolio of 22 shopping malls and seven retail spaces in
Indonesia. The portfolio was valued at SGD1.5 billion as of
end-June 2024.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Lippo Malls Indonesia
Retail Trust LT IDR CCC+ Affirmed CCC+
LT IDR WD Withdrawn
LMIRT Capital Pte.
Ltd.
senior unsecured LT CCC- Affirmed RR6 CCC-
senior unsecured LT WD Withdrawn
REJOY HARTON: Court Enters Wind-Up Order
----------------------------------------
The High Court of Singapore entered an order on Oct. 18, 2024, to
wind up the operations of Rejoy Harton Investments Pte. Ltd.
The company's liquidators are:
Kon Yin Tong
Aw Eng Hai
Foo Kon Tan LLP
1 Raffles Place #0461
One Raffles Place Tower 2
Singapore 048616
YONGNAM HOLDINGS: Creditors Meetings Scheduled for Nov. 11
----------------------------------------------------------
TipRanks reports that Yongnam Holdings Limited, currently in
liquidation, has announced upcoming meetings for creditors on Nov.
11, 2024, to discuss the progress of the liquidation and
potentially appoint a committee of inspection.
Creditors must file their Proof of Debt by November 4 to
participate in the meetings, TipRanks relates.
The developments come as the company continues to navigate its
financial challenges and obligations to its creditors.
Yongnam Engineering & Construction specializes in structural
engineering, specialist civil engineering and mechanical
engineering, structural steelwork.
The High Court of Singapore entered an order on Aug. 23, 2024, to
wind up the operations of Yongnam Holdings Limited and Yongnam
Engineering & Construction (Private) Limited.
The company's liquidators are:
Toh Ai Ling
Tan Yen Chiaw
Chan Kwong Shing, Adrian
KPMG Services
12 Marina View
#15-01, Asia Square Tower 2
Singapore 018961
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2024. All rights reserved. ISSN: 1520-9482.
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