/raid1/www/Hosts/bankrupt/TCRAP_Public/241211.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, December 11, 2024, Vol. 27, No. 248
Headlines
A U S T R A L I A
A AND M BULK: Second Creditors' Meeting Set for Dec. 16
BLACK LABEL: Second Creditors' Meeting Set for Dec. 16
MECHANICAL WAREHOUSE: First Creditors' Meeting Set for Dec. 13
MELODIOL GLOBAL: First Creditors' Meeting Set for Dec. 13
MOSAIC BRANDS: Receivers Close Katies Chain, 480 Jobs to Go
PREMIER ENERGY: First Creditors' Meeting Set for Dec. 16
C H I N A
CHINA PHARMA: Reports $1.12 Million Net Loss in Fiscal Q3
FUTURE FINTECH: Gets 180-Day Extension to Regain NASDAQ Compliance
FUTURE FINTECH: Incurs $4.93 Million Net Loss in Third Quarter
HISENSE GROUP: To Lay Off Nearly 30% of Staff
SHANDONG ENERGY: Fitch Gives 'BB+' LongTerm IDR, Outlook Stable
[*] CHINA: Mulls Moving Cinda Stake to Sovereign Wealth Fund
H O N G K O N G
DALIAN WANDA: Fitch Lowers LongTerm Foreign Currency IDR to 'C'
I N D I A
A C STEELS: CRISIL Keeps B+ Debt Rating in Not Cooperating
AADYA MOTOR: CRISIL Keeps D Debt Ratings in Not Cooperating
ASTEN REALTORS: Voluntary Liquidation Process Case Summary
BAIT LOGITECH: CARE Keeps D Debt Ratings in Not Cooperating
BRAHMAPUTRA METALLICS: CARE Reaffirms D Rating on INR62.47cr Loan
DAMARA GOLD: CRISIL Keeps D Debt Ratings in Not Cooperating
DHANALAXMI COTTON: CRISIL Keeps B Debt Ratings to Not Cooperating
DHANLAXMI COTEX: CRISIL Keeps D Debt Ratings in Not Cooperating
DHARMRAJ ALUMINIUM: CRISIL Keeps D Debt Rating in Not Cooperating
DUAL RINGS: CARE Keeps B- Debt Rating in Not Cooperating Category
ECA HOTELS: Voluntary Liquidation Process Case Summary
GUSKARA HIMGHAR: CRISIL Keeps B Debt Ratings in Not Cooperating
GVP INFRA: CRISIL Keeps D Debt Ratings in Not Cooperating
KAMESHWAR INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating
KAVERI GINNING: CRISIL Moves B+ Debt Ratings to Not Cooperating
KMC CONSTRUCTIONS: Insolvency Resolution Process Case Summary
LASA SUPERGENERICS: NCLT Dismisses Insolvency Petition
NAIKNAVARE BUILDCON: CARE Moves D Debt Rating to Not Cooperating
NAIKNAVARE PROFILE: CARE Moves D Debt Ratings to Not Cooperating
ORAVEL STAYS: Moody's Upgrades CFR to B2, Outlook Remains Stable
PRIYA AGRO: CARE Keeps C Debt Rating in Not Cooperating Category
RK PATIL: Insolvency Resolution Process Case Summary
S. GURUSIDDAIAH: CARE Keeps C Debt Rating in Not Cooperating
S. M. CONSTRUCTIONS: CARE Keeps D Debt Rating in Not Cooperating
S. RASIKLAL: CRISIL Keeps D Debt Ratings in Not Cooperating
SAGAR INDUSTRIES: CRISIL Keeps D Debt Rating in Not Cooperating
SEAM INDUSTRIES: CARE Keeps D Debt Ratings in Not Cooperating
SHIVA OM: CARE Keeps B- Debt Rating in Not Cooperating Category
SHIVAJI CANE: CARE Keeps D Debt Rating in Not Cooperating Category
SPM MARBLES: CARE Keeps B- Debt Rating in Not Cooperating Category
SR CYLINDERS: CRISIL Keeps D Debt Ratings in Not Cooperating
UNIWORTH TEXTILES: Insolvency Resolution Process Case Summary
VEEKAY POLYCOATS: CRISIL Moves B+ Debt Ratings to Not Cooperating
VIDEOCON INDUSTRIES: 44th Meeting of Creditors Set for Dec. 10
WALFS INFRA: CRISIL Moves D Debt Ratings from Not Cooperating
J A P A N
[*] JAPAN: Bankruptcies Set to Hit 11-Year High in 2024
M A L A Y S I A
GREENPRO CAPITAL: Reports $330,320 Net Loss in Fiscal Q3
N E W Z E A L A N D
ADVANCED MAINTENANCE: Creditors' Proofs of Debt Due on Jan. 5
DAON LIMITED: Court to Hear Wind-Up Petition on Feb. 20
ESSENTIAL CONNECTIONS: Grant Reynolds Appointed as Liquidator
MANJEERA LIMITED: Court to Hear Wind-Up Petition on Dec. 18
ROTO WHARE: Calibre Partners Appointed as Receivers
S I N G A P O R E
AKKA GEC: Commences Wind-Up Proceedings
FINEST CREATIVE: Court Enters Wind-Up Order
IDEMITSU CHEMICALS: Creditors' Proofs of Debt Due on Jan. 6
MAXEON SOLAR: Cowen Financial Ceases 5% Ownership of Common Stock
MAXEON SOLAR: Registers 944,030 Ordinary Shares Under Omnibus Plan
NAM HOE: Creditors' Proofs of Debt Due on Jan. 6
NST WIRE: Creditors' Proofs of Debt Due on Jan. 6
S O U T H K O R E A
DOOSAN GROUP: Restructuring Plan Falls Apart
S R I L A N K A
BANK OF CEYLON: Fitch Hikes LongTerm Foreign Currency IDR to 'CCC-'
CEYLON ELECTRICITY: ADB Approves US$30 Million Financing Facility
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A U S T R A L I A
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A AND M BULK: Second Creditors' Meeting Set for Dec. 16
-------------------------------------------------------
A second meeting of creditors in the proceedings of A And M Bulk
Haulage Pty Ltd has been set for Dec. 16, 2024 at 12:00 p.m. at the
offices of O'Brien Palmer at Level 9, 66 Clarence Street in Sydney
and via Zoom Video Conferencing.
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 Dec. 13, 2024 at 4:00 p.m.
Daniel Frisken of O'Brien Palmer was appointed as administrator of
the company on Nov. 20, 2024.
BLACK LABEL: Second Creditors' Meeting Set for Dec. 16
------------------------------------------------------
A second meeting of creditors in the proceedings of Black Label
Blending Pty Ltd has been set for Dec. 16, 2024 at 9:30 a.m. via
virtual meeting technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Dec. 13, 2024 at 4:00 p.m.
Terry van der Velde and Matthew Hudson of SV Partners were
appointed as administrators of the company on Nov. 11, 2024.
MECHANICAL WAREHOUSE: First Creditors' Meeting Set for Dec. 13
--------------------------------------------------------------
A first meeting of the creditors in the proceedings of Mechanical
Warehouse Solutions Pty Ltd will be held on Dec. 13, 2024 at 11:00
a.m. via Teams Videoconferencing facility.
Liam Bellamy and John Kukulovski of Mackay Goodwin were appointed
as administrators of the company on Dec. 3, 2024.
MELODIOL GLOBAL: First Creditors' Meeting Set for Dec. 13
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Melodiol
Global Health Limited will be held on Dec. 13, 2024 at 10:30 a.m.
at the offices of WA Insolvency Solutions, a division of Jirsch
Sutherland at Level 6, 109 St Georges Terrace in Perth and via
virtual meeting technology.
Clifford Rocke and Jimmy Trpcevski of WA Insolvency Solutions were
appointed as administrators of the company on Dec. 3, 2024.
MOSAIC BRANDS: Receivers Close Katies Chain, 480 Jobs to Go
-----------------------------------------------------------
Carrie LaFrenz at The Australian Financial Review reports that
after nearly seven decades of operation, womenswear brand Katies is
closing two months after its owner, Mosaic Brands, collapsed into
administration.
The Financial Review relates that KPMG, which was appointed
receivers of the ASX-listed retailer in October, said it would
close all 80 Katies stores along with 80 other shops operating
under the Millers, Rivers, and Noni B brands.
That will mean the loss of almost 500 jobs on top of others cut
when the company closed 200 stores in an attempt to resolve
financial issues before calling in KPMG and administrators FTI
Consulting.
According to the Financial Review, KPMG said the decision to close
the stores was made after a review of the Katies brand.
"The stores identified to close have been loss making resulting in
the decision to close them in January," the firm said, adding that
they had "stabilised operations" and that the other stores were
continuing to trade.
Mosaic's shares last traded at 4 cents, giving the company a market
capitalisation of just AUD6.3 million, the Financial Review notes.
They had traded at more than AUD2 before the COVID-19 pandemic. But
severe disruptions in the company's logistics chains meant delays
in receiving stock for the key Mother's Day trading period,
crunching earnings and sales in the fourth quarter of the financial
year.
Documents filed with the Australian Securities and Investments
Commission show Mosaic collapsed owing AUD249 million, the
Financial Review discloses. Those filings suggested there were more
than a dozen parties interested in purchasing all or part of the
business. It is being sold by FTI, and the store closures announced
will not affect the sales process.
Binding offers are due this month.
Mosaic's major shareholders included chairman Richard Facioni,
Sydney-headquartered alternative investment manager Alceon, which
had a 19.4 per cent stake, and retailer Spotlight, which owned 19.7
per cent.
Before it called in administrators, Mosaic had a network of about
700 stores with multiple online sales portals.
About Mosaic Brands
Based in Rosebery, Australia, Mosaic Brands Limited (ASX:MOZ) --
https://www.mosaicbrandslimited.com.au/ -- engages in the retail of
women's apparel and accessories in Australia and New Zealand. The
company sells its products under the Millers, Rockmans, Noni B,
Rivers, Katies, Autograph, W. Lane, Crossroads, beme, and Ezibuy
brand names. It operates through a network of 804 stores and online
digital department platforms. The company was formerly known as
Noni B Limited and changed its name to Mosaic Brands Limited in
November 2019.
David Hardy, Gayle Dickerson, Ryan Eagle and Amanda Coneyworth were
appointed Receivers and Managers to the assets and undertakings of
the Mosaic Brands Group entities on Oct. 28, 2024.
Mosaic Brands entities are:
- Mosaic Brands Limited
- Noni B Holdings Pty Limited
- W.Lane Pty Ltd
- Pretty Girl Fashion Group Pty. Ltd.
- Pretty Girl Fashion Group Holdings Pty Ltd
- Noni B Holdings 2 Pty Ltd
- Rivers Retail Holdings Pty Ltd
- Crossroads Retail Pty Ltd
- Katies Retail Pty Ltd
- Autograph Retail Pty Ltd
- Millers Retail Pty Ltd
- Noni B HoldCo Pty Ltd
- Ezibuy Pty. Limited
The Receivers' appointment follows the appointment of Vaughan
Strawbridge, Kate Warwick, Kathryn Evans and David McGrath of FTI
Consulting as Voluntary Administrators to the Mosaic Brands Group
on Oct. 28, 2024.
PREMIER ENERGY: First Creditors' Meeting Set for Dec. 16
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Premier
Energy Resources Pty Ltd will be held on Dec. 16, 2024 at 11:00
a.m. at the offices of Shaw Gidley at Level 1, 160 Pacific Highway
in Charlestown and via virtual meeting technology.
Paul William Gidley of Shaw Gidley was appointed as administrator
of the company on Dec. 4, 2024.
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C H I N A
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CHINA PHARMA: Reports $1.12 Million Net Loss in Fiscal Q3
---------------------------------------------------------
China Pharma Holdings, Inc. filed with the U.S. Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net loss of $1.12 million on $1.10 million of revenue for the three
months ended September 30, 2024, compared to a net loss of $777,600
on $1.80 million of revenue for the three months ended September
30, 2023.
For the nine months ended September 30, 2024, the Company reported
a net loss of $3.51 million on $3.39 million of revenue, compared
to a net loss of $1.85 million on $4.86 million of revenue for the
same period in 2023.
As of September 30, 2024, the Company had cash and cash equivalents
of $0.7 million and an accumulated deficit of $42.8 million and the
Company's current liabilities exceeded current assets by $1
million. In addition, the Company had incurred net losses of $3.5
million and had negative cash flows from operating activities of
$0.7 million for the nine months ended September 30, 2024. The
Company's Chairperson, Chief Executive Officer and Interim Chief
Financial Officer has advanced an aggregate of $1,166,294 as of
September 30, 2024 to provide working capital and enabled the
Company to make the required payments related to its former
construction loan facility. The Company anticipates operating
losses to continue for the foreseeable future due to, among other
things, costs related to the production of its existing products,
debt service costs and selling and administrative costs. These
conditions raise substantial doubt about its ability to continue as
a going concern within the next 12 months. To alleviate the
conditions that raise substantial doubt about the Company's ability
to continue as a going concern, management plans to enhance the
sales model of advance payment, and further strengthen its
collection of accounts receivable. Further, the Company is
currently exploring strategic alternatives to accelerate the launch
of nutrition products. In addition, management believes that the
Company's existing property, plant and equipment can serve as
collateral to support additional bank loans. While the current
plans will allow the Company to fund its operations in the next 12
months, there can be no assurance that the Company will be able to
achieve its future strategic alternatives raising substantial doubt
about its ability to continue as a going concern.
As of September 30, 2024, the Company had $13.47 million in total
assets, $6.94 million in total liabilities, and $6.53 million in
total shareholders' equity.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/3rvdy7jn
About China Pharma
China Pharma Holdings, Inc. is a specialty pharmaceutical company
that develops, manufactures, and markets a diversified portfolio of
products, focusing on conditions with high incidence and high
mortality rates in China, including cardiovascular, CNS,
infectious, and digestive diseases. The Company's cost-effective
business model is driven by market demand and supported by new
GMP-certified product lines covering the major dosage forms. In
addition, the Company has a broad and expanding nationwide
distribution network across all major cities and provinces in
China. The Company's wholly-owned subsidiary, Hainan Helpson
Medical & Biotechnology Co., Ltd., is located in Haikou City,
Hainan Province.
Lakewood, Colorado-based BF Borgers CPA PC, the Company's auditor
since 2016, issued a "going concern" qualification in its report
dated April 1, 2024, citing that the Company's significant
operating losses raise substantial doubt about its ability to
continue as a going concern.
On May 7, 2024, the Company, a corporation incorporated under the
laws of the State of Nevada, terminated the engagement with Borgers
serving as the Company's independent registered public accounting
firm, after the firm and its owner, Benjamin F. Borgers, were
charged by the Securities and Exchange Commission with deliberate
and systemic failures to comply with Public Company Accounting
Oversight Board (PCAOB) standards in its audits and reviews
incorporated in more than 1,500 SEC filings from January 2021
through June 2023; falsely representing to their clients that the
firm's work would comply with PCAOB standards; fabricating audit
documentation to make it appear that the firm's work did comply
with PCAOB standards; and falsely stating in audit reports included
in more than 500 public company SEC filings that the firm's audits
complied with PCAOB standards. Borgers agreed to pay a $14 million
civil penalty and agreed to permanent suspensions from appearing
and practicing before the Commission as accountants, effective
immediately.
On the same date, the Company's audit committee approved the
engagement of Enrome LLP as the Company's new independent
registered public accounting firm.
FUTURE FINTECH: Gets 180-Day Extension to Regain NASDAQ Compliance
------------------------------------------------------------------
Future FinTech Group, Inc. disclosed in a Form 8-K Report filed
with the U.S. Securities and Exchange Commission that the Company
received a written notification from the NASDAQ Stock Market
Listing Qualifications Staff indicating that the Company has been
granted an additional 180 calendar day period or until May 12,
2025, to regain compliance with the $1.00 minimum closing bid price
requirement for continued listing on the NASDAQ Capital Market
pursuant to NASDAQ Listing Rule.
NASDAQ's determination was based on the Company having met the
continued listing requirement for market value of publicly held
shares and all other applicable requirements for initial listing on
the NASDAQ Capital Market, with the exception of the bid price
requirement, and the Company's written notice to NASDAQ of its
intention to cure the deficiency during the second compliance
period by effecting a reverse stock split, if necessary. If at any
time during this additional time period the closing bid price of
the Company's securities is at least $1.00 per share for a minimum
of 10 consecutive business days, NASDAQ will provide written
confirmation of compliance and this matter will be closed. If
compliance cannot be demonstrated by May 12, 2025, Staff will
provide written notification that the Company's securities will be
delisted. At that time, the Company may appeal the Staff's
determination to a Hearings Panel of NASDAQ.
The Company will monitor the closing bid price of its shares of
common stock and will consider various options to regain compliance
before May 12, 2025.
About Future FinTech Group
New York, N.Y.-based Future FinTech Group Inc. is a holding company
incorporated under the laws of the State of Florida. The Company
historically engaged in the production and sale of fruit juice
concentrates (including fruit purees and fruit juices) and fruit
beverages (including fruit juice beverages and fruit cider
beverages) in the PRC. Due to drastically increased production
costs and tightened environmental laws in China, the Company
transformed its business from fruit juice manufacturing and
distribution to financial technology-related service businesses.
The main business of the Company includes supply chain financing
services and trading in China, asset management business in Hong
Kong, and cross-border money transfer service in the UK.
Orange, Calif.-based Fortune CPA, Inc., the Company's auditor since
2023, issued a "going concern" qualification in its report dated
April 16, 2024, citing that the Company has suffered losses from
operations, which raise substantial doubt about its ability to
continue as a going concern.
As of Sept. 30, 2024, Future FinTech Group had $53.40 million in
total assets, $17.65 million in total liabilities, and $35.75
million in total stockholders' equity.
FUTURE FINTECH: Incurs $4.93 Million Net Loss in Third Quarter
--------------------------------------------------------------
Future FinTech Group Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $4.93 million on $5.18 million of revenue for the three months
ended Sept. 30, 2024, compared to a net loss of $2.45 million on
$23.74 million of revenue for the three months ended Sept. 30,
2023.
For the nine months ended Sept. 30, 2024, the Company reported a
net loss of $10.06 million on $14.50 million of revenue compared to
a net loss of $6.23 million on $30.82 million of revenue for the
nine months ended Sept. 30, 2023.
As of Sept. 30, 2024, the Company had $53.40 million in total
assets, $17.65 million in total liabilities, and $35.75 million in
total stockholders' equity.
The Company incurred operating losses and had negative operating
cash flows and may continue to incur operating losses and generate
negative cash flows as the Company implements its future business
plan. The Company's operating losses amounted $10.70 million, and
it had negative operating cash flows amounted $13.52 million as of
Sept. 30, 2024. The Company said these factors raise substantial
doubts about the Company's ability to continue as a going concern.
The Company has raised funds through issuance of convertible notes
and common stock.
"The ability of the Company to continue as a going concern is
dependent upon its ability to successfully execute its new business
strategy and eventually attain profitable operations. The
accompanying financial statements do not include any adjustments
that may be necessary if the Company is unable to continue as a
going concern," said Future Fintech.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1066923/000121390024100164/ea0220814-10q_future.htm
About Future FinTech Group
New York, N.Y.-based Future FinTech Group Inc. is a holding Company
incorporated under the laws of the State of Florida. The Company
historically engaged in the production and sale of fruit juice
concentrates (including fruit purees and fruit juices), fruit
beverages (including fruit juice beverages and fruit cider
beverages) in the PRC. Due to drastically increased production
costs and tightened environmental laws in China, the Company had
transformed its business from fruit juice manufacturing and
distribution to financial technology-related service businesses.
The main business of the Company includes supply chain financing
services and trading in China, asset management business in Hong
Kong, and cross-border money transfer service in the UK. The
Company also expanded into brokerage and investment banking
business in Hong Kong and cryptocurrency mining farm in the U.S.
Orange, Calif.-based Fortune CPA, Inc., the Company's auditor since
2023, issued a "going concern" qualification in its report dated
April 16, 2024, citing that the Company has suffered losses from
operations, which raise substantial doubt about its ability to
continue as a going concern.
HISENSE GROUP: To Lay Off Nearly 30% of Staff
---------------------------------------------
The Standard reports that Hisense Group, the parent of Hisense Home
Appliances is to lay off 20 to 30 percent of staff, equivalent to
about 30,000 people, according to reports.
The Standard relates that an insider said that the layoff list will
be decided next week and will be done in two waves, before and
after the Chinese New Year next year.
One of the school recruitment employees said, "I have received a
layoff notice, the company mainly lays off fresh graduates and
other new recruits, and I am currently communicating with the firm
because of objections to the offered amount of compensation."
Simultaneously, an employee from the group's subsidiary said, "Many
people have already been notified," The Standard relays.
While another in-service Hisense employee said, "The online news is
too exaggerated, and the specific number of layoffs may not be so
much, but this year the number of orders the company received are
smaller than in previous years."
The Standard recalls that the leading brand in global consumer
electronics and home appliances was once reported to have 10,000
layoffs at the beginning of 2020. At that time, Hisense confirmed
there were layoffs but denied the number reached 10,000.
Hisense Home Appliances Group Co., Ltd. is principally engaged in
research and development, production and marketing of electrical
appliances such as refrigerators, residential air-conditioners,
central air-conditioners, freezers, washing machines and kitchen
electrical appliances.
SHANDONG ENERGY: Fitch Gives 'BB+' LongTerm IDR, Outlook Stable
---------------------------------------------------------------
Fitch Ratings has published China-based coal producer Shandong
Energy Group Co., Ltd.'s Long-Term Issuer Default Rating (IDR) of
'BB+'. The Outlook is Stable. Fitch has also assigned a senior
unsecured rating of 'BB+'.
Shandong Energy is wholly owned by the Shandong provincial
government. Its 'BB+' IDR is notched up from Fitch's assessment of
the group's Standalone Credit Profile (SCP) based on a bottom-up
approach, in line with its Government-Related Entities Rating
Criteria. The 'b+' SCP reflects the company's large scale, decent
unit profit and smooth access to bank and capital-market financing,
but is constrained by its high leverage and negative free cash flow
(FCF) in the medium term.
The Stable Outlook reflects its expectation that Shandong Energy
will remain a market leader and that the government is likely to
continue supporting the group.
Key Rating Drivers
State Decision-Making, Oversight 'Strong': Fitch assesses the
government's decision-making and oversight over Shandong Energy as
'Strong'. It is fully government owned - 70% by the Shandong
State-owned Assets Supervision and Administration Commission
(SASAC), 10% by Shandong Caixin Asset Management Co. Ltd. and 20%
by Shandong Guohui Investment Holding Group Co., Ltd.
(BBB+/Stable). The entity is the result of a state-initiated
merger. Shandong SASAC appoints the company's management team and
supervises its operating, investing and financing activities.
Precedents of Support 'Not Strong Enough': The Shandong provincial
government has provided tangible support to Shandong Energy,
including injected assets, land and regular subsidies. However, the
support has not been sufficient to boost the company's standalone
financial position to a stronger level.
Incentive to Support 'Not Strong Enough': Fitch evaluates Shandong
Energy's preservation of the government's policy role as 'Not
Strong Enough'. Most of Shandong's coal demand is met by supply
from other provinces, and more than half of its coal production is
outside the province. Hence, Fitch does not expect a default by
Shandong Energy to pose risk to the province's coal supply.
Shandong Energy is tasked with optimising the energy source mix in
Shandong by investing in renewable power, but the scale of its
power business remains insignificant compared with its coal mining
business.
'Strong' Contagion Risk: Shandong Energy is the largest provincial
state-owned enterprise (SOE) in Shandong in terms of revenue scale
and the second largest by asset size. Fitch considers it a
"back-bone" provincial SOE and believe a default would damage
investor sentiment in the capital market and disrupt the ability of
other local government-related entities to raise funds in the
capital market.
Normalising Coal Segment Margin: Fitch expects the company's coal
segment margin to fall to around 30% on average in 2024-2027, from
over 40% in 2021-2023, due to normalising coal prices, although
this will be partially offset by efficient cost control. The
average selling price (ASP) per tonne (t) of coal decreased to
CNY624/t in 1H24 from CNY754/t in 2023. Fitch expects ASP for 2024
to drop below CNY600/t, then decline by high single digits in 2025
and 2026.
Diversification Continues: Shandong Energy has been diversifying to
green energy and chemical products. The group plans to install 6
gigawatts (GW) of new-energy capacity by 2025. Fitch expects the
company to continue its efforts in renewable power to help with the
province's energy transition and reduce its own energy-transition
risks in the long term. It has also expanded its exposure to the
chemicals industry with the investment in its 46.1%-owned Yulong
Refinery, a large refinery and chemical compound, and acquisition
of Qixiang Tengda, a listed chemicals producer.
SCP Constrained by Leverage: Shandong Energy's 'b+' SCP is
supported by its large operating scale, moderate cost position and
strong funding access, but has medium-term constraints of sustained
high leverage and negative FCF. Fitch forecasts EBITDA net leverage
to rebound to 8x-9x in 2024-2027, modestly higher than the 7.1x in
2023, as Fitch expects negative FCF in the coming years due to
normalised coal prices and high capex. Fitch expects EBITDA
interest coverage to stay above 2.5x, given the group's low funding
costs arising from its SOE status.
Derivation Summary
Shandong Energy's 'BB+' rating incorporates a three-notch uplift
from its SCP of 'b+', under its Government-Related Entities Rating
Criteria.
Key Assumptions
- Total revenue to decrease by low single digits annually in
2024-2027 as Fitch expects coal ASP to trend down, but this will be
partially offset by increases in the chemical segment.
- Self-mined coal gross profit margin to average around 40% in
2024-2027 due to lower coal ASP, partially offset by lower
production costs.
- Self-mined coal sales volume of over 210 million t in 2024,
increasing marginally in 2025-2027 due to a ramp-up in asset
utilisation.
- Capex averaging around 4.5% of revenue per year during
2024-2027.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA interest coverage below 1.5x
- Significant deterioration in the funding capability of Shandong
Energy, excluding Yankuang Energy
- Weaker likelihood of support from the Shandong government to
Shandong Energy
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- EBITDA net leverage sustained below 6.5x
- Stronger likelihood of support from the Shandong government to
Shandong Energy
Liquidity and Debt Structure
Shandong Energy had sufficient liquidity for debt servicing at
September 2024, with readily available cash of CNY115 billion
compared with debt maturing within one year of around CNY140
billion. In addition, it had total undrawn bank credit facilities
of CNY537 billion. Fitch expects Shandong Energy to continue to
benefit from strong access to domestic funding sources due to its
large SOE status.
Issuer Profile
Shandong Energy was created by the merger of Yankuang Group
(renamed to Shandong Energy) and the previous Shandong Energy,
which was officially completed on 31 March 2021. The new entity is
among the three largest coal producers in China, with 274 million t
in sales of self-mined coal in 2023. Coal mining accounted for 72%
of the group's reported gross profit in 2023. Other major business
segments include trading, coal chemicals, power generation,
manufacturing, and new energy and materials.
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
Shandong Energy has an ESG Relevance Score of '4' for GHG Emissions
& Air Quality due to its revenue concentration in thermal coal,
which faces the risk of declining demand in the medium term because
of its high carbon footprint. This has a negative impact on the
credit profile, and is relevant to the ratings in conjunction with
other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating
----------- ------
Shandong Energy
Group Co., Ltd. LT IDR BB+ Publish
senior unsecured LT BB+ New Rating
[*] CHINA: Mulls Moving Cinda Stake to Sovereign Wealth Fund
------------------------------------------------------------
Bloomberg News reports that the Chinese government plans to
transfer ownership in one of the nation's biggest bad-debt managers
to a unit of its sovereign wealth fund in coming weeks as part of a
regulatory overhaul, according to people familiar with the matter.
Bloomberg relates that the Ministry of Finance is currently going
through the process to move its holdings in China Cinda Asset
Management to Central Huijin Investment, the people said, asking
not to be identified as the matter is private. The plan is in its
final stage but may still change or get delayed, they said.
The progress reflects Beijing's effort to disentangle its
regulatory and ownership functions, streamlining governance and
promoting more disciplined operations in its state-owned entities.
Bloomberg News had reported the plan in May last year.
The Ministry of Finance holds a 58 per cent stake in Cinda,
according to the company's 2023 annual report. Central Huijin, a
unit of China Investment Corporation which has US$1.33 trillion in
total assets, has long been the government's proxy for holding
stakes in state banks, insurers and brokerages.
As part of Beijing's financial regulatory regime overhaul, Citic
Group overtook the finance ministry as the largest shareholder in
another bad asset manager, China Huarong Asset Management in a
government-orchestrated bailout in 2021, according to Bloomberg.
China is also considering a shareholder revamp of China Great Wall
Asset Management and China Orient Asset Management, Bloomberg News
reported earlier.
The four asset management companies were established in late 1990s
to buy bad loans from banks after decades of government-directed
lending to state companies left China's biggest lenders on the
brink of insolvency, Bloomberg notes. The firms later expanded
beyond their original mandate, creating subsidiaries to engage in
other financial businesses, including shadow lending.
=================
H O N G K O N G
=================
DALIAN WANDA: Fitch Lowers LongTerm Foreign Currency IDR to 'C'
---------------------------------------------------------------
Fitch Ratings has downgraded Dalian Wanda Commercial Management
Group Co., Ltd.'s (Wanda Commercial) and Wanda Commercial
Properties (Hong Kong) Co. Limited's (Wanda HK) Long-Term
Foreign-Currency Issuer Default Ratings to 'C', from 'CC'.
Fitch has also downgraded the rating on the US-dollar notes
guaranteed by Wanda HK and issued by Wanda Commercial's
subsidiaries to 'C' with Recovery Rating of 'RR5', from 'CC' with
'RR4'. Fitch has removed the Rating Watch Negative (RWN) from all
the ratings.
The downgrade follows Wanda Commercial's announcement that it has
received consent from eligible bondholders, representing 96.32% of
the total outstanding principal amount of its USD400 million bond
maturing 20 January 2025, in favour of the resolution to amend the
bond terms and waive potential events of default. The amendments
will be executed and delivered on or around 20 December 2024. Fitch
believes the proposed amendments meet the definition of a
distressed debt exchange (DDE) under its Corporate Rating
Criteria.
Fitch rates Wanda Commercial and Wanda HK based on its Parent and
Subsidiary Linkage Rating Criteria. The two issuers are rated at
the same level, as Fitch assesses their Standalone Credit Profiles
as being equal in a distressed scenario. Wanda HK is Wanda
Commercial's fully owned sole offshore financing platform and
overseas investment-holding company.
Key Rating Drivers
Consent Solicitation Approved: Wanda Commercial announced on 4
December 2024 that 96.32% of the January 2025 bondholders have made
valid consent instructions to the proposed term amendments. The
consent solicitation constitutes a DDE under its criteria. Fitch
expects both of the following to apply when considering whether a
debt restructuring should be classified as a DDE: the restructuring
imposes a material reduction in terms compared with existing
contractual terms and has the effect of allowing the issuer to
avoid an eventual probable default.
Consent Solicitation to Avoid Default: Fitch believes the consent
solicitation was necessary for Wanda Commercial to avoid a default.
The company said in its announcement that if the consent
solicitation is not successfully consummated, it may be unable to
pay the principal amount and accrued interest of the US-dollar
bonds on the original maturity date and that this may trigger
cross-default provisions under its other debt.
Material Reduction in Terms: The proposed amendments to the bond
terms include an extension of the maturity date and partial
redemption of the bonds, which constitute a material reduction in
terms.
Derivation Summary
The ratings on Wanda Commercial and Wanda HK reflect the consent
solicitation, which Fitch considers to be a DDE.
Key Assumptions
Fitch's Key Assumptions Within Its Rating Case for the Issuer:
- Available cash balance remaining below CNY5 billion in
2024-2025.
- No equity financing cash inflow due to timing uncertainty.
Recovery Analysis
Recovery Rating on Notes Guaranteed by Wanda HK
The recovery analysis assumes that Wanda HK would be liquidated in
a bankruptcy. Fitch assumes a 10% administrative claim.
Liquidation Approach
The liquidation estimate reflects its view of the value of
balance-sheet assets that can be realised in the sale or
liquidation processes conducted during a bankruptcy or insolvency
proceeding and distributed to creditors. Fitch assumes the
following:
- Advance rate of 0% applied to excess cash after netting off
payables and other payables.
- Advance rate of 50% applied to investment properties, supported
by Wanda HK's hotels and shopping malls, which generate rental
yields of above 6%.
- Advance rate of 0% applied to accounts receivable and other
receivables from Wanda Group-related parties to reflect the
parent's liquidity stress.
- Advance rate of 30% applied to account receivables and other
receivables from third parties, based on the likelihood of the
collectability of the receivables.
The allocation of value in the liability waterfall results in a
Recovery Rating corresponding to 'RR5' for offshore senior debt.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Fitch would downgrade the IDRs on Wanda Commercial and Wanda HK
to 'RD' (Restricted Default) if the consent solicitation is
completed or if the group fails to meet any of its debt
obligations.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Fitch will reassess Wanda Commercial's capital structure and cash
flow after the completion of the consent solicitation to determine
Wanda Commercial and Wanda HK's IDR.
Issuer Profile
Wanda Commercial is China's largest shopping mall owner and one of
the largest commercial property owners rated by Fitch.
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
Wanda Commercial has an ESG Relevance Score of '4' for Financial
Transparency, because Wanda Group is a private company and its
financial disclosure to Fitch is limited. Fitch has obtained
audited financial reports and access to Wanda Group's management,
but information about the group's other principal subsidiaries may
be limited. The uncertainty over Wanda Group's financial
transparency has a negative impact on the credit profile and is
highly relevant to the rating.
Wanda Commercial has an ESG Relevance Score of '4' for Group
Structure, because there is a lack of transparency, particularly in
intragroup transactions between Wanda Commercial and Wanda Group.
This includes the issuance of guarantees or other forms of credit
enhancement or contractual features of debt, such as subordination
or ringfencing, that affect the risk profile of Wanda Commercial,
which indicates a weak group structure. This has a negative impact
on the credit profile and is highly relevant to the rating.
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
----------- ------ -------- -----
Dalian Wanda
Commercial
Management
Group Co., Ltd. LT IDR C Downgrade CC
Wanda Commercial
Properties (Hong Kong)
Co. Limited LT IDR C Downgrade CC
Wanda Properties
International
Co. Limited
senior unsecured LT C Downgrade RR5 CC
Wanda Properties
Global Co. Limited
senior unsecured LT C Downgrade RR5 CC
=========
I N D I A
=========
A C STEELS: CRISIL Keeps B+ Debt Rating in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of A C Steels
(ACS) continues to be 'CRISIL B+/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 11 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with ACS for
obtaining information through letter and email dated November 11,
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 ACS, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ACS
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
ACS continues to be 'CRISIL B+/Stable Issuer not cooperating'.
ACS was established in 1988 as a partnership firm by Mr. Rajendra
Kumar Surana, Mr. Ashok Kumar Surana, and Mr. Rahul Surana. The
firm manufactures ingots and TMT steel bars. It has manufacturing
facilities in Raipur.
AADYA MOTOR: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Aadya Motor
Car Company Private Limited (AMCCPL) continue to be 'CRISIL
D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 41 CRISIL D (Issuer Not
Cooperating)
Cash Credit 41.75 CRISIL D (Issuer Not
Cooperating)
Cash Credit 74 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 13.26 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 8 CRISIL D (Issuer Not
Cooperating)
Term Loan 31.99 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with AMCCPL for
obtaining information through letter and email dated November 11,
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 AMCCPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
AMCCPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of AMCCPL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
AMCCPL, set up in 2009 by Mr. V Ramananand Rao, is an authorised
dealer for Audi cars in Mumbai. The company, with trade name, Audi
Mumbai West, operates one showroom in Andheri, Mumbai.
ASTEN REALTORS: Voluntary Liquidation Process Case Summary
----------------------------------------------------------
Debtor: Asten Realtors Pvt. Ltd.
No. 33/2440 F, Compass
Chakkaraparambu, NH 47 Bypass
Thammanam, P.O.
Eranakulam, Kerala 682032
Liquidation Commencement Date: November 19, 2024
Court: National Company Law Tribunal, Kochi Bench
Liquidator: Padmakumar.K.C.
Padmakumar K.C., T.C. 15/1997(3)
Fair Dreams, Womens' College North Gate
Thiruvananthapuram - 695014
Email: padmakumarko@gmail.com
Email: astencirp@gmail.com
Last date for
submission of claims: December 19, 2024
BAIT LOGITECH: CARE Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Bait
Logitech Private Limited (BLPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 6.60 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated October 10,
2023, placed the rating(s) of BLPL under the 'issuer
non-cooperating' category as BLPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
BLPL continues to be non-cooperative despite repeated requests for
submission of information through emails dated August 25, 2024,
September 4, 2024, September 14, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Bait Logitech Private Limited (BLPL) was incorporated in the year
2010 by promoters named Mr. Brahmananda Mishra and with its office
located Khordha, Odisha. Since its inception, the company has been
engaged in several business activities such as trading of iron
ores, construction of buildings, fabrication and erection of
industrial structures, and transportation services. The company
mainly generates income from trading of iron ores. This apart, the
company also generates income from transportation services and also
from civil construction, fabrication and erection job. Both the
directors (Mr. Brahmananda Mishra and Mr. Bimal Krushna Mishra)
have more than 25 years of experience in these industries. Both of
them look after the day to day operations of the entity along with
other technical and non-technical professionals who are having long
experience in this industry.
Status of non-cooperation with previous CRA: CRISIL has continued
the rating assigned to the bank facilities of BLPL into Issuer Not
Cooperating category vide press release dated October 30, 2023 on
account of its inability to carry out a review in the absence of
the requisite information from the company.
BRAHMAPUTRA METALLICS: CARE Reaffirms D Rating on INR62.47cr Loan
-----------------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
Brahmaputra Metallics Limited (BML), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 62.47 CARE D; Rating removed from
Facilities ISSUER NOT COOPERATING category
and Reaffirmed
Short Term Bank 32.00 CARE D; Rating removed from
Facilities ISSUER NOT COOPERATING category
and Reaffirmed
Rationale and key rating drivers
In absence of minimum information required for the purpose of
rating, CARE Ratings Limited (CARE) was unable to express an
opinion on the rating of BML and in line with the extant SEBI
guidelines, CARE had moved the rating of the bank facilities of the
company to CARE 'D; Issuer Not Cooperating'. However, the company
has now submitted the requisite information to CARE. Accordingly,
CARE has carried out a full review of the rating and the rating has
been removed from Issuer not cooperating category and reaffirmed at
'CARE D'.
The rating assigned to the bank facilities of BML is constrained by
delay in debt servicing of its GECL term loan.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Default free track record for more than 90 days.
Analytical approach: Standalone
Outlook: Not applicable
Detailed description of key rating drivers:
Key weaknesses
* Delay in debt servicing: There has been instances of delay in
debt servicing in GECL loans in recent past.
Liquidity: Poor
Liquidity is marked poor due to delay in timely servicing of GECL
loan.
Brahmaputra Metallics Limited (BML) is promoted by Guwahati based
Lohia Group and Jaiswal Group. The Company was initially
incorporated as Brahmaputra Breweries and Distilleries Pvt. Ltd. on
October 29, 1999. Subsequently the Company decided to enter steel
plant and consequently the name of the Company was changed to
Brahmaputra Metallics (P) Limited on December 4, 2006. The Company
was converted into a public limited company and rechristened as
Brahmaputra Metallics Limited on July 4, 2007.
In May 2009, BML envisaged setting up an integrated steel plant at
Gola, Ramgarh District, Jharkhand. The installed capacity stands at
1,05,000 tonnes per annum for sponge iron, 2,00,000 tonnes per
annum for billets and a 20 MW captive power plant. The directors of
the company include Mr. Bajrang Lohia, Mr. Kaushik Agarwal and Mr.
Santosh Kumar Jaiswal.
DAMARA GOLD: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Damara Gold
Private Limited (DGPL) continue to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Bank 3 CRISIL D (Issuer Not
Guarantee Cooperating)
Proposed Working 3.3 CRISIL D (Issuer Not
Capital Facility Cooperating)
Rupee Term Loan 10.8 CRISIL D (Issuer Not
Cooperating)
Working Capital 14 CRISIL D (Issuer Not
Facility Cooperating)
Working Capital 55 CRISIL D (Issuer Not
Facility Cooperating)
CRISIL Ratings has been consistently following up with DGPL for
obtaining information through letter and email dated November 11,
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 DGPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on DGPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
DGPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
DGPL, is a Mumbai based company, is involved in manufacture and
wholesale of gold jewellery. The company has manufacturing facility
based in Mumbai.
DHANALAXMI COTTON: CRISIL Keeps B Debt Ratings to Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Dhanalaxmi
Cotton Industries (DCI) continue to be 'CRISIL B/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.75 CRISIL B/Stable (Issuer Not
Cooperating)
Cash Credit 12.50 CRISIL B/Stable (Issuer Not
Cooperating)
Long Term Loan 3.00 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 2.25 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with DCI for
obtaining information through letter and email dated November 11,
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 DCI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on DCI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
DCI continues to be 'CRISIL B/Stable Issuer not cooperating'.
Set up in January 2013, DCI is engaged in ginning and pressing of
raw cotton and sells cotton lint and cotton seeds. Based out of
Parakal village near Warangal and promoted by Mr. Yerra Harishankar
and his family, the firm commenced commercial operations from
November 2013.
DHANLAXMI COTEX: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Dhanlaxmi
Cotex (DC) continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL D (Issuer Not
Cooperating)
Cash Term Loan 2 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with DC for
obtaining information through letter and email dated November 11,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of DC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on DC is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the rating on bank facilities of DC
continues to be 'CRISIL D Issuer not cooperating'.
Set up in 2013, DC is a partnership firm promoted by the Patel
family. The firm undertakes cotton ginning and pressing operations
at its production facility in Kadi (Gujarat). DC started its
commercial production in October 2014.
DHARMRAJ ALUMINIUM: CRISIL Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Dharmraj
Aluminium Industries Private Limited (DAIPL) continues to be
'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 20 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with DAIPL for
obtaining information through letter and email dated November 11,
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 DAIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on DAIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
DAIPL continues to be 'CRISIL D Issuer not cooperating'.
DAIPL, incorporated in 2011, manufactures aluminium ingots. The
company is currently promoted and managed by Mr. Vijay C Gujar and
Mr. Bharat B Gujar. DAIPL has a manufacturing facility in
Aurangabad (Maharashtra) with a capacity of 18,000 tonne per
annum.
DUAL RINGS: CARE Keeps B- Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Dual Rings
Private Limited (DRPL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated October 31,
2023, placed the rating(s) of DRPL under the 'issuer
non-cooperating' category as DRPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
DRPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated September 15, 2024,
September 25, 2024 and October 5, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Hyderabad based, Dual Rings Private Limited (DRPL) was incorporated
in 1991 as a Private Limited Company by Mr. Ramachandra Rao and Mr.
Malahala Rao. The company is engaged in the manufacturing of Forged
Components and Rolled Components such as Forged Rings, Bearings,
Wheel Space, Hexagon Nuts, and Machined Components etc. for the use
of various industrial requirements like Automobile industry. The
company purchases raw material like steel, alloy, metal and iron
from suppliers located in Telangana and Maharashtra states. The
company manufactures and sells its final product to the customers
located in Tamilnadu and Maharashtra. The current installed
capacity for the manufacturing of industrial components is 250
metric tons per month.
ECA HOTELS: Voluntary Liquidation Process Case Summary
------------------------------------------------------
Debtor: ECA Hotels and Investments Company Private Limited
No. 101, Shantiniketan Apartments
#294, 39th Cross, 8th Block
Jayanagar, Bangalore
Karnataka, India 560070
Liquidation Commencement Date: November 25, 2024
Court: National Company Law Tribunal, Bengaluru Bench
Liquidator: Kondisetty Kumar Dushyantha
No. 1, Ashika Pillar, 5th Floor
3rd Cross Jayanagar, I Block
Bangalore 560011
Email: dushyanthak@gmail.com
Tel No: 080 2650400
Last date for
submission of claims: December 25, 2024
GUSKARA HIMGHAR: CRISIL Keeps B Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Guskara
Himghar Private Limited (GHPL) continues to be 'CRISIL B/Stable
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B/Stable (Issuer Not
Cooperating)
Term Loan 2 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with GHPL for
obtaining information through letter and email dated November 11,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of GHPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on GHPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
GHPL continues to be 'CRISIL B/Stable Issuer not cooperating'.
GHPL, incorporated in 2003, provides cold storage services to
potato farmers and traders. Its cold storage is in Guskara, WB.
Operations are managed by Mr Sushil Mondal.
GVP INFRA: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of GVP Infra
Projects Private Limited (GIPPL) continue to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 27.5 CRISIL D (Issuer Not
Cooperating)
Term Loan 22.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with GIPPL for
obtaining information through letter and email dated November 11,
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 GIPPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on GIPPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
GIPPL continues to be 'CRISIL D Issuer not cooperating'.
GIPPL operates a 15 megawatt hydro power project in Udupi district
in Karnataka. The operations of the company are managed by the
promoter, Mr. G Venkateswara Rao.
KAMESHWAR INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Kameshwar
Industries (KI) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.45 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated October 12,
2023, placed the rating(s) of KI under the 'issuer non-cooperating'
category as KI had failed to provide information for monitoring of
the rating as agreed to in its Rating Agreement. KI continues to be
non-cooperative despite repeated requests for submission of
information through e-mails dated August 27, 2024, September 6,
2024 and September 16, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Kadi based (Gujarat) KI was established in June, 2013 as a
partnership firm to carry on the business of cotton ginning and
pressing. It is currently managed by 6 partners and operates from
its sole manufacturing plant situated in Kadi, Gujarat with an
annual installed capacity of 66,00,000 Kg. of cotton bales and
1,25,00,000 Kg. of cotton seeds as on March 31, 2017. Partners
purchase raw material in bulk quantity from farmers locally.
Status of non-cooperation with previous CRA: CRISIL has continued
the ratings assigned to the bank facilities of KI into 'Issuer
not-cooperating' category vide press release dated August 12, 2024
on account of non-availability of requisite information from the
Firm.
KAVERI GINNING: CRISIL Moves B+ Debt Ratings to Not Cooperating
---------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Kaveri
Ginning Industries Private Limited (KGIPL) to 'CRISIL B+/Stable
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 24.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Term Loan 2.0 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with KGIPL for
obtaining NDS through letters/emails dated September 30, 2024,
October 30, 2024 and November 30, 2024 among others, apart from
telephonic communication to seek the same. After non-receipt of NDS
for 2 consecutive months, we also sent a letter dated November 22,
2024 reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of KGIPL to confirm timely debt servicing during
these months, but awaits any feedback.
'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 NDSs from KGIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on KGIPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the rating on bank facilities of KGIPL
migrated to 'CRISIL B+/Stable Issuer not cooperating'.
KGIPL was incorporated in 2014. KGIPL is owned & managed by Mr.
Kakirala Ramesh and Mr. Jilla Srinivas. KGIPL is engaged in cotton
ginning & bales pressing. Its manufacturing facility is located in
Vill, Chityala Mdl, Nalgonda Dist, Hyderabad.
KMC CONSTRUCTIONS: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: KMC Constructions Limited
Door No. 1-80/40/SP/58-65
Shilpa Homes Layout
Gachibowli, Hyderabad
Telangana, India 500032
Insolvency Commencement Date: November 20, 2024
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: May 20, 2025
Insolvency professional: Narender Reddy Banala
Interim Resolution
Professional: Narender Reddy Banala
3-7-406/PS/204, 2nd Floor
Flat 204, Parkstone Apartments
Sirimalle Nagar Colony
Hyderguda, Aditya Pharmacy
Hyderabad, Telangana 500048
Email: bnreddy.acs@gmail.com
Email: ibc.kmcconst@gmail.com
Last date for
submission of claims: December 5, 2024
LASA SUPERGENERICS: NCLT Dismisses Insolvency Petition
------------------------------------------------------
ETLegalWorld.com reports that the National Company Law Tribunal,
Mumbai Bench, has dismissed Lasa Supergenerics Limited's petition
seeking insolvency because the financial creditor withdrew it.
ETLegalWorld.com says the Financial Creditor sanctioned a One-Time
Settlement on October 1, 2024, under which the corporate debtor
paid the financial creditor the entire amount of OTS of US Dollar
21,61,700.
According to ETLegalWorld.com, the default amount involved in the
petition was INR19 crores, and after interest, the default amount
came to INR26 cores. This has been settled for US Dollars
21,61,700, which is equivalent to INR17.70 crores.
The matter was heard before the bench of Lakshmi Gurung (Judicial
Member), and Charanjeet Singh Gulati (Technical Member).
Lasa Supergenerics Limited has informed the Exchange about the
Corporate Insolvency Resolution Process, the report notes.
Lasa Supergenerics Limited -- https://lasalabs.com/ -- engages in
the research, manufacture, and marketing of animal and human
healthcare products in India. It offers API products comprising
fenbendazole, toldimphos sodium, cyromazine, albendazole,
ricobendazole, oxfendazole, closantel base, closantel sodium
dihydrate BP, nitroxynil, rafoxanide, oxyclozanide, ornidazole, and
halquinol, as well as 2,6-diiodo-4-nitrophenol; and other API
products. The company also provides animal feed ingredients,
including calcium iodate; and reagents for therapeutic use, such as
potassium iodide. In addition, it exports its products.
NAIKNAVARE BUILDCON: CARE Moves D Debt Rating to Not Cooperating
----------------------------------------------------------------
CARE Ratings has migrated the ratings for the bank facilities of
Naiknavare Buildcon Private Limited (NBPL) to the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-convertible 28.20 CARE D; ISSUER NOT COOPERATING;
debentures Rating moved to ISSUER NOT
COOPERATING category
Rationale and key rating drivers
Naiknavare Buildcon Private Limited (NBPL) has not paid the
surveillance fees for the rating exercise agreed to in its rating
agreement. Considering the extant SEBI guidelines, CARE Ratings
Limited's (CARE Ratings) rating on NBPL's instruments will now be
denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and public at
large) are hence requested to exercise caution while using the
above rating(s).
The rating assigned to the instruments of Naiknavare Buildcon
Private Limited continue considering ongoing delays in servicing
debt obligations.
Analytical approach: Standalone
Outlook: Not applicable
Detailed description of key rating drivers:
At the time of last rating on December 8, 2023, following were the
rating strengths and weaknesses (updated for the information
available from client).
Key weaknesses
* Ongoing delays in servicing of debt obligations: Owing to the
company's stretched liquidity position, there has been ongoing
delay in repayment of NCDs which was due on March 28, 2023. The
maturity date is extended to March 31, 2025, and the NCDs have been
partly redeemed. As on November 15, 2024, outstanding NCDs balance
is INR28.20 crore (per BSE filling of the company).
Liquidity: Poor
Liquidity is marked by tightly matched accruals to debt obligations
on the NCDs.
Naiknavare Group (group) is engaged in construction business since
the last 29 years in Pune, and has transferred its three projects
such as Neelaya - Talegaon, Eagle's Nest- Talegaon, and Seven
Business Square - Shivajinagar under a newly formed special purpose
vehicle (SPV) Naiknavare Buildcon Private Limited (NBPL). The
business was transferred on March 31, 2019.
NAIKNAVARE PROFILE: CARE Moves D Debt Ratings to Not Cooperating
----------------------------------------------------------------
CARE Ratings has migrated the ratings for the bank facilities of
Naiknavare Profile Constructions Private Limited (NPCPL) to the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-convertible 0.0001 CARE D; ISSUER NOT COOPERATING;
debentures Rating moved to ISSUER NOT
COOPERATING category
Non-convertible 0.0001 CARE D; ISSUER NOT COOPERATING;
debentures Rating moved to ISSUER NOT
COOPERATING category
Rationale and key rating drivers
Naiknavare Profile Constructions Private Limited (NPCPL) has not
paid the surveillance fees for the rating exercise agreed to in its
rating agreement. Considering the extant SEBI guidelines, CARE
Ratings Limited's (CARE Ratings) rating on NPCPL's instruments will
now be denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Ratings assigned to the instruments of Naiknavare Profile
Constructions Private Limited continues to factor in ongoing delays
in servicing debt obligations.
Analytical approach: Standalone
Outlook: Not applicable
Detailed description of key rating drivers:
At the time of last rating on December 8, 2023 the following were
the rating strengths and weaknesses (updated for the information
available from client).
Key weaknesses
* Ongoing delays in servicing of debt obligations: Owing to the
company's stretched liquidity position, there has been ongoing
delay in repayment of NCDs. The company has made part payment and
overall 800 units of NCDs are still pending to be redeemed.
Liquidity: Poor
Liquidity is marked by tightly matched accruals to debt obligations
on the NCDs.
Naiknavare Developers Private Limited (NDPL) belonging to Naiknavre
Group is developing a residential project through Naiknavare
Profile Constructions Private Limited (NPCPL, erstwhile Naiknavare
Profile Developers LLP) by the name of Avon Vista at Balewadi, Pune
(Project) with total saleable area of 7.83 lakh square feet (lsf).
Naiknavare group is engaged in real estate construction business
for the last 28 years in Pune.
ORAVEL STAYS: Moody's Upgrades CFR to B2, Outlook Remains Stable
----------------------------------------------------------------
Moody's Ratings has upgraded Oravel Stays Limited's (OYO) corporate
family rating and the rating on the senior secured term loan issued
by its wholly-owned subsidiary Oravel Stays Singapore Pte. Ltd (OYO
Singapore) to B2 from B3, and maintained the stable outlook.
At the same time, Moody's have assigned a B2 rating to the $825
million senior secured term loan facility to be availed by OYO
Singapore. The term loan is fully underwritten by Deutsche Bank.
"The upgrade follows the proposed refinancing of OYO's existing
term loan B (TLB) through a long-term term loan that will alleviate
the company's refinancing risks," says Sweta Patodia, a Moody's
Ratings Assistant Vice President and Analyst.
"The upgrade also highlights OYO's improved profitability over
recent quarters, which has significantly strengthened its credit
metrics and positioned the company for the B2 CFR," adds Patodia,
who is also Moody's lead analyst for OYO.
RATINGS RATIONALE
OYO is in the process of securing a new five-year $825 million term
loan, which together with the $174 million of primary equity
capital raised between June and August 2024, will be used to repay
its existing TLB that matures in June 2026, easing its refinancing
pressures. The proceeds will also fund the company's $525 million
proposed acquisition of US-based hotel chain BRE/Everbright M6
Borrower LLC (Motel 6, B3 stable).
Meanwhile, OYO's operating performance has continued to improve on
the back of business growth and sustained cost optimization
efforts. The company generated an EBITDA (including employee stock
ownership expenses) of $98 million for the fiscal year ended March
2024 (FY23-24), a sharp improvement from the $34 million EBITDA
loss in the previous year. Its negative free cash flows moderated
to $17 million from $84 million over the same period.
Sustained improvement in operating performance resulted in OYO
generating $56 million EBITDA for the first half of FY24-25.
Furthermore, its acquisition of French rental homes company
Checkmyguest (CMG) earlier in July 2024 will aid the improvement in
its EBITDA to around $134 million in FY24-25. Earnings will further
increase upon the successful integration of its Motel 6
acquisition, especially with cost synergies of $20 million-$30
million following a seamless integration of corporate and support
functions. Moody's forecast OYO's EBITDA will reach $200 million in
FY25-26, which will be its first full year of earnings from the
newly acquired businesses.
Consequently, OYO's leverage, as measured by debt/EBITDA, will
gradually decline to around 4.2x by March 2026 from 4.8x in March
2024.
OYO's interest expense will decline to around $65 million - $70
million in FY24-25 from $101 million in the previous fiscal year,
following the partial repayment of its TLB last year. Ongoing
earnings growth combined with lower interest expenses will result
in the company becoming free cash flow positive on a full-year
basis in FY24-25, after sustaining significant cash burn in recent
years.
OYO's recent acquisitions will also strengthen its business profile
by improving its operating scale and geographic diversity while
increasing its exposure to developed markets.
OUTLOOK
The stable outlook reflects Moody's expectation that OYO will
continue to generate stable earnings and cash flows such that its
credit metrics will remain appropriately positioned for its ratings
over the next 1-2 years.
LIQUIDITY
OYO has very good liquidity. Its cash and cash equivalents
(including short-term investments) of $228 million as of September
2024, along with its cash flow from operations of $299 million and
committed credit facilities of $825 million, will be sufficient to
fulfil its capital spending, $525 million Motel 6 acquisition and
debt service obligations over the next 24 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
OYO's rating remains appropriately positioned, given its small
scale. A substantial expansion in scale and earnings will be key
for a higher rating. Specific credit metrics indicative of a higher
rating include debt/EBITDA remaining below 4.0x and EBIT/interest
above 2.5x on a sustained basis. Additionally, a higher rating
would require the company to ensure at least good liquidity at all
times.
A sharp deterioration in the company's credit metrics due to a
sustained weakness in its operating performance would exert
pressure on the ratings. Specific metrics for a lower CFR include
debt/EBITDA remaining above 4.5x and EBIT/interest remaining below
2.0x on a sustained basis.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
Oravel Stays Limited (OYO) is an India-based hospitality aggregator
operating in the budget segment. It was founded in 2013 by Ritesh
Agarwal, who holds a 33.1% stake in the company. SVF India Holdings
(Cayman) Limited – a subsidiary of SoftBank Group Corp. (Ba3
positive) – is its largest shareholder with a 45.9% stake.
PRIYA AGRO: CARE Keeps C Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sri Priya
Agro Farms (SPAF) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.00 CARE C; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated October 20,
2023, placed the rating(s) of SPAF under the 'issuer
non-cooperating' category as SPAF had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
SPAF continues to be non-cooperative despite repeated requests for
submission of information through emails dated September 4, 2024,
September 14, 2024, September 24, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Sri Priya Agro Farms (SPAF) was established in the year 2006 and
promoted by Mr. Bommareddy Gokul Kumar Reddy (Managing Partner) and
Mrs. Bommareddy Aruna Kumari (Partner). The firm is engaged in
farming of egg, laying poultry birds (chickens) and trading of
eggs, cull birds and their Manure. The firm sells its products like
eggs and cull birds in West Bengal, Bhopal, Assam, Orissa to
retailers through own sales personnel and through some dealers. The
firm mainly buys chicks (small chickens) and raw materials for
feeding of birds like rice broken, maize, sunflower oilcake, shell
grit, minerals and soya from local traders.
RK PATIL: Insolvency Resolution Process Case Summary
----------------------------------------------------
Debtor: RK Patil Infraprojects Private Limited
RMC Plant, R.K.House
Near Gavhan Phata
PanvelUran Road
Vahal, Panvel 410 206
Maharashtra, India
Insolvency Commencement Date: November 26, 2024
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: May 24, 2025
Insolvency professional: Rajesh Shah
Interim Resolution
Professional: Rajesh Shah
701, Laxmikunj Apartment,
Opp. Premanand Society
Near Rajendranagar, Navi Peth,
Pune 411 030
Email: rsshah27@hotmail.com
Email: rprkpatilinfraprojects@hotmail.com
Last date for
submission of claims: December 10, 2024
S. GURUSIDDAIAH: CARE Keeps C Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of S.
Gurusiddaiah (SG) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE C; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated October 20,
2023, placed the rating(s) of SG under the 'issuer non-cooperating'
category as SG had failed to provide information for monitoring of
the rating as agreed to in its Rating Agreement. SG continues to be
non-cooperative despite repeated requests for submission of
information through e-mails dated September 4, 2024, September 14,
2024 and September 24, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Karnataka based, S. Gurusiddaiah (SG) was established as a
proprietorship firm in the year 2013 and promoted by Mr. S.
Gurusiddaiah. The firm is engaged in providing warehouses on lease
rental basis. The rural godowns are used for storage of various
consumer goods such as bricks, cement bags, paint cans, cables,
wires, etc. Commercial operations for two godowns were started in
2016 and for third godown, the commercial operations started from
September 2018. Some of the regular customers of the firm are
Bharti Airtel Limited, Alpha Packaging Private Limited, Sami Labs
Limited and Athara Oil Industry, from whom the firm earns revenue
by sale of sites, for the storage of various goods. Apart, the firm
is also engaged in trading of various goods such as bricks, cement
bags etc. to local customers.
S. M. CONSTRUCTIONS: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of S. M.
Constructions (SMC) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.39 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 5,
2023, placed the rating(s) of SMC under the 'issuer
non-cooperating' category as SMC had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
SMC continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated October 20, 2024,
October 30, 2024 and November 9, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Goa-based S.M. Constructions (SMC) was established as a
proprietorship concern in the year 1994 by Mrs Shamshun Shaikh,
with the assistance of her husband Mr Muktar Shaikh, for industrial
construction and real estate development in the state of Goa. The
firm belongs to the Shaikh Muktar Group (SMG) of companies in Goa,
which has interests in mining, construction,
engineering, logistics, hospitality (new venture), shipping and
automobiles.
S. RASIKLAL: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of S. Rasiklal
and Co. (S. Rasiklal) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Adhoc Limit 1 CRISIL D (Issuer Not
Cooperating)
Foreign Exchange 0.6 CRISIL D (Issuer Not
Forward Cooperating)
Packing Credit 3.15 CRISIL D (Issuer Not
Cooperating)
Packing Credit 1.5 CRISIL D (Issuer Not
Cooperating)
Post Shipment 10.5 CRISIL D (Issuer Not
Credit Cooperating)
Post Shipment 5.25 CRISIL D (Issuer Not
Credit Cooperating)
Proposed Long Term 12 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with S. Rasiklal
for obtaining information through letter and email dated November
11, 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 S. Rasiklal, which restricts
CRISIL Ratings' ability to take a forward looking view on the
entity's credit quality. CRISIL Ratings believes that rating action
on S. Rasiklal is consistent with 'Assessing Information Adequacy
Risk'. Based on the last available information, the ratings on bank
facilities of S. Rasiklal continues to be 'CRISIL D/CRISIL D Issuer
not cooperating'.
Set up in 1969 as a proprietorship concern by Mr. Rasiklal Shah, S.
Rasiklal was reconstituted as a partnership firm in 1972. The firm
is currently managed by Mr. Pravin Shah and his family. The firm
manufactures and exports cut and polished diamonds. It is also
engaged in the trading of polished diamonds.
SAGAR INDUSTRIES: CRISIL Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Sagar
Industries (Sagar) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 14.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with Sagar for
obtaining information through letter and email dated November 11,
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 Sagar, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on Sagar
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
Sagar continues to be 'CRISIL D Issuer not cooperating'.
Incorporated in 1994, Sagar is a partnership concern. The firm is
engaged into ginning and pressing of the raw cotton and crushing of
cotton seeds. The factory is situated in Surendranagar, Gujarat.
SEAM INDUSTRIES: CARE Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Seam
Industries Limited (SIL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 38.37 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 30.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated September 6,
2023 placed the rating(s) of SIL under the 'issuer non-cooperating'
category as SIL had failed to provide information for monitoring of
the rating and continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone calls
and email dated July 22, 2024; August 1, 2024; August 11, 2024 and
December 3, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings take into account ongoing liquidation process against
the company.
Analytical approach: Standalone
Outlook: Not applicable.
Detailed description of the key rating drivers:
At the time of last rating on September 6, 2023 the following were
the rating weaknesses.
Key rating weaknesses
* On-going delays in debt servicing: NCLT has ordered liquidation
of company on June 30, 2021. Insolvency and Bankruptcy board of
India has issued notice for auction of the company's assets
SIL was incorporated as a backward integration unit to help its
parent Sunil Hi-Tech Engineers Limited (SHEL) to consolidate its
fabrication and installation know-how in the power sector. SIL is a
subsidiary of SHEL, which holds 88.61% (as on March 31, 2018) and
is engaged in manufacturing of pressure parts used by power plants,
petrochemical plants, sugar industry and heavy engineering
industry. SIL primarily undertakes fabrication related to pressure
parts, IBR (Indian Boiler Regulations) certified piping systems.
Besides, it also undertakes fabrication of tanks, cooling coils,
trays and jackets, distillation columns and volumetric condensers.
SIL operates out of two units located in Nagpur with a combined
area of 1,50,000 sq. meters and covered sheds of 11,800 sq. meters.
The two units have a consolidated installed capacity of fabrication
of 24,000 metric tons per annum (MTPA) of structures, 4,000 MTPA of
piping and 5,000 MTPA of carbon piping and allied works.
SHIVA OM: CARE Keeps B- Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shiva Om
Agro Industries (SOAI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 5.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING, Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated October 31,
2023, placed the rating(s) of SOAI under the 'issuer
non-cooperating' category as SOAI had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
SOAI continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated September 15, 2024,
September 25, 2024 and October 5, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Gulbarga based, Shiva Om Agro Industries (SOAI) was established in
the year 2016 by Mr. Kiran Kumar S Chincholi as a proprietorship
firm. The firm has set up a processing unit with the latest
elevator technology sortex machine for pulses such as Toor dal,
Gram Dal, Moong Dal, Urid Dal and Masoor Dal.
SHIVAJI CANE: CARE Keeps D Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shivaji
Cane Processors Limited (SCPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 59.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 4,
2023, placed the rating(s) of SCPL under the 'issuer
non-cooperating' category as SCPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
SCPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated October 19, 2024,
October 29, 2024 and November 29, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
SCPL was incorporated by Mr. Shivajirao Yashwantrao Naik, Founder
Director in 2013 to undertake manufacturing activity of sulphur-
less khandsari and jaggery powder with its operational facility
located at Shirala, Sangli District, and Maharashtra. SCPL's sugar
facility is partially integrated with Sugarcane crushing. The
company sells khandsari and jaggery powder in the brand name of
"Puro".
SPM MARBLES: CARE Keeps B- Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of SPM
Marbles Private Limited (SMPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated November 27,
2023, placed the rating(s) of SMPL under the 'issuer
non-cooperating' category as SMPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
SMPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated October 12, 2024,
October 22, 2024 and November 1, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Stable
Kishangarh (Rajasthan) based SPM Marbles Private Limited (SMPL),
incorporated in 2002, were promoted by Mr. Ashish Bakliwal, Mr.
Sanjay Kawad and Mr. Bhagwan Das Biyani along with his son, Mr.
Abhishek Biyani. SMPL is engaged in the business of processing of
marble blocks as well as trading of finished marble slabs and
tiles.
SR CYLINDERS: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of SR Cylinders
Private Limited (SRCPL) continue to be 'CRISIL D/CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.5 CRISIL D (Issuer Not
Cooperating)
Cash Credit 3 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 1 CRISIL D (Issuer Not
Cooperating)
Term Loan 5.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SRCPL for
obtaining information through letter and email dated November 11,
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 SRCPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SRCPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SRCPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
Incorporated in 2015 in Hyderabad and promoted by Mr. Shiva
Shankara Reddy, SRCPL manufactures domestic liquefied petroleum gas
(LPG) cylinders, in sizes ranging from 2 47.50 kilograms. It also
offers services like such as hot/cold repair of cylinders.
UNIWORTH TEXTILES: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Uniworth Textiles Limited
Rawdon Chambers
11A Sarojini Naidu Sarani
4th Floor, Unit 4B,
Kolkata, West Bengal
India, 700017
Insolvency Commencement Date: November 14, 2024
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: May 24, 2025
Insolvency professional: Hari Kishan Bhoklay
Interim Resolution
Professional: Hari Kishan Bhoklay
KDRA Insolvency Professionals Private Limited
(Erstwhile M/s Kanchansobha Debt Resolutions
Advisors Private Limited)
Unit #207, 2nd Floor, Kshitij
Near Azad Nagar Metro Station
Veera Desai Road
Andheri West, Mumbai - 400053
Email: irp@kanchansobha.com
Email: cirp.uniworth@gmail.com
Last date for
submission of claims: December 9, 2024
VEEKAY POLYCOATS: CRISIL Moves B+ Debt Ratings to Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Veekay
Polycoats Limited (VPL) to 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 60 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Long Term Loan 50 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with VPL for
obtaining NDS through letters/emails dated September 30, 2024,
October 30, 2024 and November 30, 2024 among others, apart from
telephonic communication to seek the same. After non-receipt of NDS
for 2 consecutive months, we also sent a letter dated November 22,
2024 reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of VPL to confirm timely debt servicing during
these months, but awaits any feedback.
'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 NDSs from VPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on VPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the rating on bank facilities of VPL
migrated to 'CRISIL B+/Stable Issuer Not Cooperating'.
Incorporated in 1992, VPL manufactures polyvinyl chloride (PVC)
coated fabrics, PVC flooring and PVC films and allied products. VPL
has three plants, one each at Narsingpur Industrial area in Madhya
Pradesh, Binola Industrial Area in Gurugram, and RIICO Industrial
Area at Bhiwadi in Rajasthan. The NCLT order dated January 25,
2023, accepted the resolution plan submitted by the applicant, Rare
Asset Reconstruction Ltd (investors) for the revival of VPL. The
new management, led by Mr Sanjay Agarwal and his family, has
initiated modernisation of the company's plant.
VIDEOCON INDUSTRIES: 44th Meeting of Creditors Set for Dec. 10
--------------------------------------------------------------
ETLegalWorld.com reports that the Forty Fourth meeting of the
consolidated Committee of Creditors (CoC) of Videocon Industries
Limited and other 12 Videocon group companies, having a
consolidated corporate insolvency resolution process, was scheduled
on Dec. 10, 2024.
The CoC meeting is in accordance with the provisions of Regulation
19 of the Insolvency and Bankruptcy Board of India (Insolvency
Resolution Process for Corporate Persons) Regulations, 2016,
ETLegalWorld.com says.
"This is a Pre-Facto intimation of the meeting of the consolidated
committee of creditors," Videocon Industries said in an exchange
filing.
The disclosure to the exchange filing was made under Regulation 30
(Schedule III, Part A, Clause A) of the Securities and Exchange
Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015.
About Videocon Industries
Videocon Industries sells consumer products like color televisions,
washing machines, air conditioners, refrigerators, microwave ovens
and many other home appliances in India.
Videocon, owned by the Dhoot family, was taken to bankruptcy court
after it failed to repay INR230 crore to SBI in 2017. It was among
the first 12 companies pushed into bankruptcy after directions from
the Reserve Bank of India in 2017.
On June 6, 2018, National Company Law Tribunal (NCLT), Mumbai
bench, admitted a petition for initiating insolvency resolution
process against the company under the Insolvency and Bankruptcy
Code, 2016.
The company's total debt stood at over INR635 billion in 2019,
according to Business Standard, citing bankruptcy case-related
disclosures on the company's website.
WALFS INFRA: CRISIL Moves D Debt Ratings from Not Cooperating
-------------------------------------------------------------
Due to inadequate information and in line with the Securities and
Exchange Board of India guidelines, CRISIL Ratings had migrated its
rating on the long-term bank facilities of Walfs Infra India Pvt
Ltd (WIIPL) to 'CRISIL D Issuer Not Cooperating'. However, the
company's management has subsequently started sharing the
information necessary for a comprehensive review of the rating.
Consequently, CRISIL Ratings is migrating the rating on the
long-term bank facilities of WIIPL to 'CRISIL D'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 7.38 CRISIL D (Migrated from
'CRISIL D ISSUER NOT
COOPERATING')
Secured Overdraft 15 CRISIL D (Migrated from
Facility 'CRISIL D ISSUER NOT
COOPERATING')
Term Loan 120 CRISIL D (Migrated from
'CRISIL D ISSUER NOT
COOPERATING')
The rating reflects delays in debt-servicing by WIIPL on account of
weak liquidity and nascent stage of operations. These weaknesses
are partially offset by the extensive experience of its promoters
in the real estate industry.
Analytical approach:
To arrive at the rating, CRISIL Ratings has revised its analytical
approach and has now combined the business and financial risk
profiles of WIIPL and Meridian Pharmacy. This factors in common
promoters of the entities and the significant operational and
financial linkages. WIIPL had acquired 99% stake in Meridian
Pharmacy in FY 2022.
Key rating drivers and detailed description
Weaknesses:
* Delays in debt-servicing: WIIPL had continued delays noted in
servicing of term loan interest and principal repayment for the
first six months of fiscal 2025. This was because of poor liquidity
and insufficient cash accrual due to losses and low revenue on
account of initial stage of operations.
* Nascent stage of operations: WIIPL was set up in 2014 to
establish a multi-speciality hospital in Chennai. The
hospital—Meridian Hospital—commenced operations in April 2022.
The nascent stage of operations will continue to impinge the
scalability over the medium term.
Strength:
* Promoters' entrepreneurial experience: WIIPL is promoted by a
team of builders with over 30 years of significant experience in
the real estate industry. However, this is the first hospital
project for the company. The key shareholders, Rajarathnam
Construction Pvt Ltd and Ruby Builders Group, have extensive
experience in real estate development in Chennai. This expertise
has enabled them to provide high quality medical infrastructure
leading to increased patient footprints on-year.
Liquidity: Poor
The liquidity is poor due to the nascent stage of operations. There
has been delays in servicing of term loans and interest
obligations.
Rating sensitivity factors
Upward factors:
* Track record of timely debt servicing for at least over 90 days
* Improvement in the financial risk profile and liquidity
WIIPL was set up in May 2014 by a consortium of builders to
establish a 300-bed multi-speciality hospital in Chennai. The
construction of the hospital commenced in January 2017 and
commercial operations started in 2022. Orthopaedic care, emergency
care, radiation oncology, general medicine, critical care unit
team, cardiology, and nephrology care departments contribute to
major revenue share.The company has 99% stake in Meridian Pharmacy,
a partnership firm which supplies medicines to the inpatients of
the hospital.
=========
J A P A N
=========
[*] JAPAN: Bankruptcies Set to Hit 11-Year High in 2024
-------------------------------------------------------
Reuters reports that Japan's bankruptcy filings this year are set
to surpass 10,000 and hit the highest since 2013, private-sector
data by Tokyo Shoko Research (TSR) showed on Dec. 9, ahead of a
closely watched central bank meeting next week.
In November, 841 Japanese companies went bankrupt, bringing the
January-November tally to 9,164, already exceeding last year's
total, Reuters discloses citing data from the credit research
agency.
The 2024 bankruptcy figure will likely exceed 10,000 for the first
time since 2013, when 10,855 firms went bankrupt, Reuters relays.
Reuters adds that the Bank of Japan will hold a rate review on Dec.
18-19 at which policymakers will scrutinise recent economic
indicators to see if they are in line with forecasts. Market
expectations for the next BOJ rate hike have fluctuated between
December and January.
===============
M A L A Y S I A
===============
GREENPRO CAPITAL: Reports $330,320 Net Loss in Fiscal Q3
--------------------------------------------------------
Greenpro Capital Corp. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $330,320 on $539,699 of total revenue for the three months ended
September 30, 2024, compared to a net loss of $120,994 on
$1,070,972 for the three months ended September 30, 2023.
For the nine months ended September 30, 2024, the Company reported
a net loss of $1,168,983 on $1,559,272 of total revenue, compared
to a net income of $6,563,458 on $2,309,592 of total revenue for
the same period in 2023. As of September 30, 2024, the Company
incurred an accumulated deficit of $37,707,535.
As of September 30, 2024, the Company had $6,736,090 in total
assets, $1,870,365 in total liabilities, and $4,865,725 in total
shareholders' deficit.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/mthb45ax
About Greenpro Capital Corp.
Kuala Lumpur, Malaysia-based Greenpro Capital Corp. provides
cross-border business solutions and accounting outsourcing services
to small and medium-sized businesses located in Asia, with an
initial focus on Hong Kong, China, and Malaysia. Greenpro offers a
range of services as a package solution to its clients, believing
that this approach can reduce business costs and improve revenues.
Kuala Lumpur, Malaysia-based JP Centurion & Partners, the Company's
auditor since 2021, issued a "going concern" qualification in its
report dated March 21, 2024, citing that for the year ended
December 31, 2023, the Company incurred a negative cash flow from
operating activities of $1,594,718 and an accumulated deficit of
$36,549,095. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
=====================
N E W Z E A L A N D
=====================
ADVANCED MAINTENANCE: Creditors' Proofs of Debt Due on Jan. 5
-------------------------------------------------------------
Creditors of Advanced Maintenance (CHCH) Limited are required to
file their proofs of debt by Jan. 5, 2025, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Dec. 2, 2024.
The company's liquidator is:
Brenton Hunt
PO Box 13400
City East
Christchurch 8141
DAON LIMITED: Court to Hear Wind-Up Petition on Feb. 20
-------------------------------------------------------
A petition to wind up the operations of Daon Limited will be heard
before the High Court at Auckland on Feb. 20, 2025, at 10:45 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Nov. 13, 2024.
The Petitioner's solicitor is:
Hosanna Tanielu
Inland Revenue, 5 Osterley Way
Manukau City
Auckland 2104
ESSENTIAL CONNECTIONS: Grant Reynolds Appointed as Liquidator
-------------------------------------------------------------
Grant Bruce Reynolds of Reynolds & Associates on Dec. 3, 2024, was
appointed as liquidator of Essential Connections Limited.
The liquidator may be reached at:
Reynolds & Associates Limited
PO Box 259059
Botany
Auckland 2163
MANJEERA LIMITED: Court to Hear Wind-Up Petition on Dec. 18
-----------------------------------------------------------
A petition to wind up the operations of Manjeera Limited will be
heard before the High Court at Christchurch on Dec. 18, 2024, at
10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Oct. 21, 2024.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
ROTO WHARE: Calibre Partners Appointed as Receivers
---------------------------------------------------
Neale Jackson and Daniel Stoneman of Calibre Partners on Dec. 6,
2024, were appointed as receivers and managers of Roto Whare
Limited.
The receivers and managers may be reached at:
Calibre Partners
Level 21
88 Shortland Street
Auckland
=================
S I N G A P O R E
=================
AKKA GEC: Commences Wind-Up Proceedings
---------------------------------------
Members of Akka Gec Singapore Pte. Ltd. on Nov. 29, 2024, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidators are:
Ellyn Tan Huixian
Forvis Mazars Consulting
135 Cecil Street
#10-01 Philippine Airlines Building
Singapore 069536
FINEST CREATIVE: Court Enters Wind-Up Order
-------------------------------------------
The High Court of Singapore entered an order on Nov. 22, 2024, to
wind up the operations of Finest Creative Pte. Ltd.
Maybank Singapore Limited filed the petition against the company.
The company's liquidator is:
Gary Loh Weng Fatt
BDO Advisory
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
IDEMITSU CHEMICALS: Creditors' Proofs of Debt Due on Jan. 6
-----------------------------------------------------------
Creditors of Idemitsu Chemicals Southeast Asia Pte. Ltd. are
required to file their proofs of debt by Jan. 6, 2025, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Dec. 2, 2024.
The company's liquidators are:
Lau Chin Huat
Yeo Boon Keong
50 Havelock Road, #02-767
Singapore 160050
MAXEON SOLAR: Cowen Financial Ceases 5% Ownership of Common Stock
-----------------------------------------------------------------
Cowen Financial Products, LLC disclosed in a Schedule 13 filed with
the U.S. Securities and Exchange Commission that as of September
30, 2024, it ceased to be the beneficial owner of more than five
percent of Maxeon Solar Technologies, Ltd.'s Common Stock.
Cowen Financial Products LLC may be reached at:
John Holmes
Chief Operating Officer
599 Lexington Ave.
New York, NY 10022
Tel: 646-562-1000
A full-text copy of Cowen Financial's SEC Report is available at:
https://tinyurl.com/465cz9pn
About Maxeon Solar
Maxeon Solar Technologies, Ltd. is a Singapore-based company that
designs and manufactures photovoltaic panels. The company was
previously a division of the American SunPower company before it
was spun off in August 2020. Maxeon is still the primary provider
of solar panels for SunPower.
Singapore-based Ernst & Young LLP, the Company's auditor since
2020, issued a "going concern" qualification in its report dated
May 30, 2024, citing that the Company has suffered recurring losses
from operations and negative free cash flows and has stated that
substantial doubt exists about the Company's ability to continue as
a going concern.
As of December 31, 2023, the Company had $1 billion in total
assets, $997.4 million in total liabilities, and $4.6 million in
total equity.
MAXEON SOLAR: Registers 944,030 Ordinary Shares Under Omnibus Plan
------------------------------------------------------------------
Maxeon Solar Technologies, Ltd. filed a Registration Statement
Pursuant to General Instruction E of Form S-8 with the Securities
and Exchange Commission to register an aggregate of 944,030
additional shares of the Maxeon's ordinary shares, no par value,
issuable under the Maxeon's 2020 Omnibus Incentive Plan, as
amended.
The additional Ordinary Shares are additional securities of the
same class as other securities relating to the Omnibus Plan for
which registration statements on Form S-8 filed with the Commission
on August 6, 2020 (File No. 333-241709) and February 29, 2024 (File
No. 333-277501), each as post-effectively amended on October 9,
2024 to reflect the impact of a 100:1 reverse share split are
effective.
On November 8, 2024, the Compensation Committee of the Board,
through delegated authority, approved amendments to the Omnibus
Plan to amend in aggregate the total number of Ordinary Shares
available for issuance under the Omnibus Plan.
A full-text copy of the Registration Statement is available at:
https://tinyurl.com/mvjtpx8k
About Maxeon Solar
Maxeon Solar Technologies, Ltd. is a Singapore-based company that
designs and manufactures photovoltaic panels. The company was
previously a division of the American SunPower company before it
was spun off in August 2020. Maxeon is still the primary provider
of solar panels for SunPower.
Singapore-based Ernst & Young LLP, the Company's auditor since
2020, issued a "going concern" qualification in its report dated
May 30, 2024, citing that the Company has suffered recurring losses
from operations and negative free cash flows and has stated that
substantial doubt exists about the Company's ability to continue as
a going concern.
As of December 31, 2023, the Company had $1 billion in total
assets, $997.4 million in total liabilities, and $4.6 million in
total equity.
NAM HOE: Creditors' Proofs of Debt Due on Jan. 6
------------------------------------------------
Creditors of Nam Hoe & Company Private Limited are required to file
their proofs of debt by Jan. 6, 2025, to be included in the
company's dividend distribution.
The company's liquidator is:
See Yong Beng
331 North Bridge Road
#12-03 Odeon 331
Singapore 188720
NST WIRE: Creditors' Proofs of Debt Due on Jan. 6
-------------------------------------------------
Creditors of NST Wire & Welding (S) Pte. Ltd. are required to file
their proofs of debt by Jan. 6, 2025, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Dec. 2, 2024.
The company's liquidators are:
Yamashika Masao
Yiong Kok Kong
Avic DKKY Pte. Ltd.
180 Cecil Street, #12-04
Singapore 069546
=====================
S O U T H K O R E A
=====================
DOOSAN GROUP: Restructuring Plan Falls Apart
--------------------------------------------
The Korea Herald reports that Doosan Group's business restructuring
plan has fallen apart once again, after Korea's martial law turmoil
delivered a heavy blow to the stock market.
According to the Korea Herald, Doosan Enerbility on Dec. 10
announced that it decided not to hold a temporary shareholders
meeting on Friday [Dec. 13] this week after it held a board of
directors meeting earlier in the day, indicating that the attempt
to split off Doosan Bobcat, a subsidiary of Doosan Enerbility, and
merge it with Doosan Robotics had to be scrapped.
"Due to unforeseen changes in the external environment, the stock
prices of the companies involved in the spinoff and merger plan
have sharply declined in a short period of time and significantly
widened the gap between the stock price and the stock buyback
price," said Doosan Enerbility in a regulatory filing.
Doosan Enerbility's stock closed at KRW17,180 ($12) per share at
Dec. 10's closing, down about 19 percent from Dec. 3, the day of
President Yoon Suk Yeol's martial law declaration, the Korea Herald
discloses. Although the National Assembly passed the motion to
scrap martial law early on Dec. 4, shares of Doosan Enerbility
plunged by 10 percent on that day alone, and they have been
slipping since.
The Korea Herald says the maker of nuclear reactors explained that
its major shareholders had expressed their voices to veto the
spinoff and merger plan or forgo taking part in the initially
scheduled shareholders meeting on Dec. 13 with the fallen stock
value.
The company added that it had decided to let investors know the
direction it plans to go ahead, and came to the conclusion of
scrapping a temporary shareholders meeting.
"As the current situation is something that happened so suddenly
and unexpectedly, our company finds it difficult to tell you our
alternatives for the fallout of the spinoff and merger plan at this
moment," Park Sang-hyun, CEO of Doosan Enerbility, wrote in an open
letter to shareholders.
"We will explore various ways to secure more capital for investment
and how to achieve growth acceleration through careful reviews."
The Korea Herald notes that Doosan Group has been pushing for the
corporate restructuring plan in the last several months as the
conglomerate cited the need and logic to create better synergy
between its affiliates to bolster their competitiveness.
As Doosan Enerbility holds a 46 percent stake in Doosan Bobcat, the
latest plan was to spin off a new company that will own Doosan
Enerbility's Bobcat shares and integrate under Doosan Robotics as a
subsidiary.
Under the plan, a stakeholder that holds 100 shares in Doosan
Enerbility would have received 88.5 shares of Doosan Enerbility and
4.33 shares of Doosan Bobcat, which are aimed at returning more to
the investors from the previous proposal of 75.3 shares in the
former and 3.15 shares in the latter, the Korea Herald notes. The
initial restructuring plan faced backlash from shareholders and
financial authorities, so the heavy machinery-to-energy
conglomerate had to revise the earlier plan.
Doosan's core businesses are based on ISB (Infrastructure Support
Business). Doosan's Infrastructure Support Businesses are made up
of five subsidiaries: Doosan Corporation, Doosan Heavy Industries &
Construction, Doosan Infracore, Doosan Engineering & Construction
and Doosan Engine. These subsidiaries provide electrical power,
desalinated drinking water, construction equipment, advanced
machinery, defense supplies, houses, highways and bridges, chemical
processing equipment and industrial engines.
=================
S R I L A N K A
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BANK OF CEYLON: Fitch Hikes LongTerm Foreign Currency IDR to 'CCC-'
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Fitch Ratings has upgraded Bank of Ceylon's (BOC) Long-Term Foreign
Currency Issuer Default Rating (IDR) to 'CCC-' from 'CC'. At the
same time, the Rating Watch Negative (RWN) on the Viability Rating
(VR) has been removed and the VR upgraded to 'ccc-' from 'cc'.
Fitch has also affirmed the Short-Term IDR at 'C' and the
Government Support Rating (GSR) at 'ns'.
BOC's Local-Currency IDR and National Ratings were not considered
in this review.
Key Rating Drivers
Lower Risk of Failure: The removal of the RWN and the upgrade of
the VR reflects its view that risk of failure - as per Fitch's Bank
Rating Criteria - stemming from capital deficiencies has declined
significantly. The action reflects the advanced stages of the
government's efforts to restructure the debt granted to a
state-owned entity. Fitch does not expect the estimated losses from
this restructuring to be sufficiently large to require
extraordinary support to restore viability.
BOC's VR of 'ccc-' is highly influenced by its operating
environment assessment, as it is likely to constrain the intrinsic
credit profile through its effect on financial and non-financial
key rating factors. The upgrade of the Foreign Currency IDR is
driven by the upgrade of its VR, and both remain above Sri Lanka's
Foreign Currency IDR. This reflects its view of a lower risk that
the authorities will impose restrictions on the bank servicing its
foreign-currency obligations despite the sovereign being in
default.
Declining Capital-Impairment Risks: The restructuring of loans
granted to a state-owned entity that have now been assumed by the
government, is nearing completion. Fitch views the agreed terms as
more favourable for BOC than initially anticipated, thereby
reducing the risk of material capital erosion for the bank. On
account of this, Fitch has revised upwards BOC's capitalisation and
leverage score to 'ccc-' from 'cc'.
Sovereign Risk Drives Risk Profile: The upward revision in BOC's
risk profile assessment to 'ccc-' from 'cc' reflects easing
risk-profile constraints as the sovereign debt restructuring -
including loans extended to a state-owned entity - draws to a
conclusion. The risk profile assessment on BOC continues to reflect
its large exposures to the weak sovereign - estimated at nearly 60%
of assets. Fitch expects BOC's exposure to the sovereign to
moderate in the medium term as private-sector lending opportunities
expand.
Asset Quality to Improve: Fitch revised upwards BOC's asset quality
score to 'ccc-' from 'cc', in line with its assessment of the risk
profile. This reflects its view that asset-quality metrics -
encompassing both loans and non-loan exposures - stem largely from
its risk profile which is predominantly exposed to the sovereign.
BOC's impaired (stage 3) loans ratio deteriorated to 13.6% by
end-3Q24 (end-2023: 12.6%), mostly on account of the loan book
contraction, but Fitch expects a meaningful improvement in 2025 due
to better economic conditions and an expanding loan book.
Funding and Liquidity Risks Ease: The upward revision in BOC's
Funding and Liquidity score to 'ccc-' from 'cc' reflects the
improvement - albeit still weak - in local- and foreign-currency
funding and liquidity profile relative to the crisis period, thanks
to favourable external sector flows and the bank's focus on
liquidity preservation. Fitch believes this to have reduced the
likelihood of bank failure due to liquidity stress. Fitch expects
the restoration of the sovereign's creditworthiness, following a
successful debt restructuring, to provide BOC with access to
foreign-currency wholesale funding.
Declining Risks to Profitability: Downside risks to BOC's
profitability has diminished following the announcement of the
final restructuring terms of the sovereign bonds as well as the
state-linked borrowing. The bank's core profitability metric -
operating profit/risk weighted assets - improved to 3.7% in 9M24
(2023: 3.1%), and Fitch expects this to increase further by
end-2024 upon the conclusion of the state-owned entity's debt
restructuring.
OE Improvement Linked to Sovereign: Fitch expects any improvement
in the sovereign's credit profile, following successful debt
restructuring, to be credit positive for its assessment of the Sri
Lankan banks' operating environment (OE), given the strong link
between sovereign financial health and banks' operating conditions.
The economic reforms undertaken since the crisis period have led to
sustained improvements in headline macroeconomic indicators in Sri
Lanka, reducing systemic risks and supporting the banks' operating
flexibility.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Fitch would downgrade BOC's Long-Term Foreign- and/or
Local-Currency IDRs if Fitch perceives there is an increased
likelihood that the bank would default on - or seek a restructuring
of - its senior foreign- and/or local-currency obligations to
non-government creditors.
Potential capital erosion that increases failure risk could lead to
a downgrade of BOC's VR. A default on senior obligations to third
party, non-government creditors may be viewed by Fitch as a "bank
failure" and could lead to the VR being downgraded to 'f'.
A downgrade of the VR may not necessarily lead to a downgrade of
the Long-Term Foreign- and Local-Currency IDRs, unless the VR
downgrade is a result of increased default risk stemming from
funding and liquidity stresses.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
An upgrade of BOC's Long-Term Foreign- and Local-Currency IDRs and
VR would most be likely to result from an improvement in the
sovereign's credit profile and the operating environment
assessment, which could occur after the successful restructuring of
the sovereign's external debt.
A sustained improvement in the sovereign's financial flexibility
may lead to a reconsideration of state support, leading to an
upgrade of the bank's GSR.
VR ADJUSTMENTS
The operating environment score of 'ccc-' is below the 'b' category
implied score due to the following adjustment reason: sovereign
rating (negative).
The business profile score of 'ccc-' is below the 'b' category
implied score due to the following adjustment reason: business
model (negative).
BOC has a 1.78% equity stake in Fitch Ratings Lanka Ltd. No
shareholder other than Fitch, Inc. is involved in the day-to-day
rating operations of, or credit reviews undertaken by, Fitch
Ratings Lanka Ltd.
ESG Considerations
Bank of Ceylon has an ESG Relevance Score of '4' for Financial
Transparency. This reflects its view that the recent regulatory
forbearance measures announced by the Central Bank of Sri Lanka
could distort the true solvency and liquidity position of the bank,
thereby limiting financial transparency. This has a negative impact
on the credit profile, and is relevant to the rating in conjunction
with other factors.
Bank of Ceylon has an ESG Relevance Score of '4' for Governance
Structure due to ownership concentration, with a 100% state
shareholding and several related-party transactions with the state
and state-owned entities, which has a negative impact on the credit
profile, and is relevant to the rating 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
----------- ------ -----
Bank of Ceylon LT IDR CCC- Upgrade CC
ST IDR C Affirmed C
Viability ccc- Upgrade cc
Government Support ns Affirmed ns
CEYLON ELECTRICITY: ADB Approves US$30 Million Financing Facility
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The Asian Development Bank (ADB) has approved a $30 million Small
Expenditure Financing Facility (SEFF) for the Ceylon Electricity
Board (CEB), guaranteed by the Democratic Socialist Republic of Sri
Lanka, to bolster the sustainability of ongoing and future energy
sector projects.
"This is Sri Lanka's first SEFF, designed to support the
operational sustainability of ADB-financed energy projects, promote
initiatives to increase the share of renewable energy, and
encourage private sector participation in the renewable energy
sector, particularly in the context of the country's economic
challenges," said ADB Country Director for Sri Lanka Takafumi
Kadono. "The facility will finance post-completion activities of
ADB-financed projects, feasibility studies for advanced renewable
energy technologies, preparatory work for transmission and
distribution upgrades, and capacity building in emerging
technologies. The first activity under the SEFF will enhance the
operational sustainability of the Moragolla Hydropower Plant
financed by ADB.
The SEFF will play a crucial role in supporting Sri Lanka's target
to achieve 70% of its electricity generation from renewable energy
sources by 2030, as part of its broader energy transition strategy.
Achieving the 2030 target will require substantial investments in
renewable energy infrastructure, grid modernization, and energy
storage solutions, alongside policy reforms to encourage private
sector participation and international financing.
The facility complements Sri Lanka's broader power sector reforms
and investment program, supported by ADB's Power Sector Reforms and
Financial Sustainability Program and the recently approved Power
System Strengthening and Renewable Energy Integration project. The
approval of the SEFF underscores ADB's continued support for Sri
Lanka's energy sector, recognizing the substantial progress made in
advancing critical power sector reforms. These reforms aim to
enhance the sector's financial sustainability, implement
cost-recovery tariff adjustments, and foster competitive renewable
energy development.
The facility will strengthen the institutional capacity of the CEB
to effectively integrate and manage renewable energy systems, adopt
digital solutions, and support the sector's transition toward a
more sustainable and resilient energy future.
Of the total $30 million facility, $15 million will be allocated to
enhance the operational sustainability of the Moragolla Hydropower
Plant, while the remaining $15 million will support activities
aimed at facilitating renewable energy generation and grid
integration.
ADB is committed to achieving a prosperous, inclusive, resilient,
and sustainable Asia and the Pacific, while sustaining its efforts
to eradicate extreme poverty. Established in 1966, it is owned by
69 members - 49 from the region.
As reported in the Troubled Company Reporter-Asia Pacific on Nov.
13, 2024, Fitch Ratings affirmed Ceylon Electricity Board's (CEB)
National Long-Term Rating at 'BB+(lka)'. The Outlook is Stable.
Fitch also affirmed the National Long-Term Rating of CEB's
outstanding senior unsecured debentures at 'BB+(lka)'.
CEB's ratings are equalised with the Sri Lankan sovereign rating
(Long-Term Local-Currency Issuer Default Rating CCC-) under Fitch's
Government-Related Entities (GRE) Rating Criteria. This is based on
our assessment that there is a very high likelihood that CEB, the
Fitch's monopoly electricity transmitter and distributor, would
continue to receive government support.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2024. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
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Information contained herein is obtained from sources believed
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thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***