/raid1/www/Hosts/bankrupt/TCRAP_Public/250414.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
Monday, April 14, 2025, Vol. 28, No. 74
Headlines
A U S T R A L I A
CORONADO GLOBAL: Fitch Lowers LongTerm IDR to 'B', Outlook Negative
DK HEAVY: First Creditors' Meeting Set for April 16
HARBOURVIEW REALTY: First Creditors' Meeting Set for April 15
INFINITE GREEN: First Creditors' Meeting Set for April 17
OMEGA GROUP: First Creditors' Meeting Set for April 16
REACON AUSTRALIA: Federal Court Challenge Adjourned to May 9
S.A.I.S.S. SOFTWARE: First Creditors' Meeting Set for April 16
STRONGROOM LTD: More Than 10 Bidder Lined Up to Acquire Startup
TORRENS 2025-1: S&P Assigns BB+(sf) Rating on Class E Notes
TURQUOISE I 2025-1: S&P Assigns B(sf) Rating on Class F Notes
C H I N A
AIXIN LIFE: Delays 10-K Filing Due to Financial Statement Review
COUNTRY GARDEN: Wins Key Bondholder Support for Offshore Debt Plan
I N D I A
ADITYA AGRO: ICRA Keeps D Debt Ratings in Not Cooperating
ARENE LIFE: ICRA Keeps B+ Debt Ratings in Not Cooperating
BABA ISPAT: ICRA Lowers Rating on INR14cr LT Loan to B+
BYJU'S: Glas Trust Rejects Founder's Fraud, Collusion Allegations
BYJU'S: HC Orders to Preserve Emails Amid Insolvency Proceedings
DEEPTHY FENISHERS: ICRA Keeps B Debt Rating in Not Cooperating
G.M. FABRICS: ICRA Withdraws B+ Rating on INR58cr Term Loan
JSK MARKETING: ICRA Keeps D Debt Ratings in Not Cooperating
KARLO AUTOMOBILES: ICRA Keeps B+ Debt Ratings in Not Cooperating
KULDEVI COTTON: ICRA Keeps B Debt Ratings in Not Cooperating
LANTECH PHARMACEUTICALS: ICRA Keeps B+ Ratings in Not Cooperating
LAXMI BALAJI: ICRA Keeps B+ Debt Ratings in Not Cooperating
M V AGRO: ICRA Keeps D Debt Ratings in Not Cooperating Category
MAHARAJA SATHYAM: ICRA Keeps B+ Debt Rating in Not Cooperating
NOBLE EDUCATIONAL: ICRA Keeps D Debt Ratings in Not Cooperating
PARAMOUNT INTERNATIONAL: ICRA Keeps D Ratings in Not Cooperating
PM CARS: ICRA Keeps B+ Debt Ratings in Not Cooperating Category
SAANVI CLOTHING: ICRA Keeps B Debt Ratings in Not Cooperating
SANDHYA HYDRO: ICRA Lowers Rating on INR83.10cr Term Loan to D
SHAGUN EXPLOCHEM: Ind-Ra Withdraws BB- Bank Loan Rating
SIMBHAOLI SUGARS: Defaults on Loan Amid Insolvency Proceedings
SMS CONSTRUCTIONS: ICRA Keeps B Debt Ratings in Not Cooperating
SPECTRA AUTO: ICRA Keeps B+ Debt Ratings in Not Cooperating
SRINIVASA HAIR: ICRA Keeps B+ Debt Ratings in Not Cooperating
SUPREME SOLAR: ICRA Keeps B+ Debt Ratings in Not Cooperating
VEDAMATHA ENTERPRISES: ICRA Keeps D Ratings in Not Cooperating
VENKATESWARA RICE: ICRA Keeps D Debt Ratings in Not Cooperating
VENU INDUSTRIES: ICRA Keeps B Debt Rating in Not Cooperating
N E W Z E A L A N D
AUCKLAND CONSTRUCTION: Court to Hear Wind-Up Petition on May 1
CAMBRY GROUP: Creditors' Proofs of Debt Due on May 18
HAMILTON MOVERS: Creditors' Proofs of Debt Due on May 12
HANSELLS MASTERTON: Masterton Rocked by Possible Closure of Plant
NIGHTINGALE FINANCE: Creditors' Proofs of Debt Due on May 20
NORTHERN CONTRACTORS: Creditors' Proofs of Debt Due on May 12
S I N G A P O R E
KS ENERGY: Creditors' Proofs of Debt Due on May 7
NEW GLOBAL: Commences Wind-Up Proceedings
WHITEROCK MEDICAL: Creditors' Proofs of Debt Due on May 7
YIDA PRECISION: Court Enters Wind-Up Order
S O U T H K O R E A
MG NON-LIFE: Insolvency to Hamper JC Partners' KDB Life Deal
[] SOUTH KOREA: Number of Marginal Companies Up in 2024
V I E T N A M
HDBANK: Moody's Affirms 'B1' Deposit & Issuer Ratings
- - - - -
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A U S T R A L I A
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CORONADO GLOBAL: Fitch Lowers LongTerm IDR to 'B', Outlook Negative
-------------------------------------------------------------------
Fitch Ratings has downgraded Coronado Global Resources Inc.'s (CRN)
Long-Term Issuer Default Rating (IDR) to 'B', from 'B+'. The
Outlook is Negative.
Fitch has simultaneously affirmed the 'BB-' rating on the US dollar
senior secured notes issued by CRN's wholly owned subsidiary,
Coronado Finance Pty Ltd, with a Recovery Rating (RR) of 'RR2'. The
notes are guaranteed by CRN and all its operating subsidiaries, and
are their senior secured obligations.
The IDR downgrade and Negative Outlook reflect significant risk to
CRN's financial metrics and credit profile due to a sharp fall in
prices of metallurgical (met) coal, CRN's primary output, since
February 2025. The Outlook also captures risks to coal demand
recovery especially in light of US tariff increases. Growth
prospects, particularly in Asia, have deteriorated as a result,
against Fitch's Global Economic Outlook in March 2025.
This could impair liquidity, if CRN is unable to obtain additional
funding. CRN's efforts to secure financing could be hampered by a
weak price environment. CRN may choose to cut operating costs and
capex through certain cost reduction and capex deferral
initiatives, but these steps could have repercussions beyond 2025.
Nonetheless, Fitch continues to expect an improvement in CRN's
business profile due to a materially better global cost position
starting in 2H25, and a substantial improvement in the financial
profile from 2026.
Key Rating Drivers
EBITDA Loss Seen in 2025: Fitch estimates CRN will incur an EBITDA
loss in 2025, following a weak Fitch-adjusted EBITDA of USD72
million in 2024. The forecast loss is driven by weak met prices,
despite its expectation of a significant improvement in unit
production costs. Fitch's assumption for 2025 average met coal
benchmark price is USD180 per tonne (t), which is more than USD60/t
lower than 2024. Fitch assumes CRN's average mining cost per unit
sold will decrease by around USD20/t in 2025.
Large Negative FCF: Fitch forecasts a large negative free cash flow
(FCF) of over USD350 million for CRN in 2025, which would drain its
end-2024 cash of around USD340 million in the absence of additional
funding. However, Fitch expects CRN to obtain more debt in the next
few months to support its liquidity. Fitch expects the company to
engage lenders of its asset-based revolving credit facility (RCF)
to provide covenant flexibility, which would allow CRN to draw
around USD130 million. Fitch thinks CRN could also tap other forms
of financing that would exempt it from meeting the minimum fixed
charge cover incurrence covenant of 2.0x under the notes.
Weak Coal Prices: Premium hard met coal prices for Australia have
fallen swiftly to below USD170/t, from USD190/t in mid-February
2025, due to a sustained weakness in demand from the steel sector.
Fitch sees substantial risk to a meaningful price recovery in the
near term, on weak prospects for global growth and steel demand due
to US tariff hikes outlined on 2 April 2025. The tariff increases
sharply exceeded Fitch's expectations, and will affect global
growth and demand for commodities such as met coal.
High Costs Likely to Decrease: CRN was in the fourth quartile of
CRU's business cost curve for met coal in 2024, based on
production-weighted average costs. Fitch estimates CRN's position
will improve to the third quartile in 2025, based on CRU data,
driven by higher output from the new Mammoth underground mine in
Curragh Complex, Australia, and Buchanan mine expansion in the US.
Significant cost reduction will be evident only in 2H25, after
project completion.
Higher Output from 2H25: Fitch expects CRN's coal sales volumes to
jump by 15% in 2025, on higher output at key assets. CRN plans to
increase the mining units at Mammoth to three, from one, by 2H25.
It is also targeting a new raw coal storage facility and additional
coal hoisting capacity at Buchanan in 2Q25. It expects to incur the
majority of the planned 2025 capex on these projects in 1H25. Fitch
expects CRN's capex to fall in 2H25, due to lower development and
expansion-related spending.
Opex and Capex Flexibility: CRN can trim mining costs to supplement
the benefit from increased output. However, Fitch believes such
measures merely defer mining activity and raise future costs. CRN
can also cut maintenance capex for existing assets, but this could
risk unplanned outages. Fitch thinks CRN may be forced to adjust
its mining plan to cut operating costs and defer some sustenance
projects if coal prices do not recover within the next two
quarters.
Stanwell Uplift from 2027: Profitability at Curragh, CRN's largest
asset by volume, is weakened by thermal coal sales to Queensland's
Stanwell Corporation Ltd. at below market rates and revenue sharing
from coal exports with Stanwell through rebates. CRN expects its
agreement with Stanwell to expire by early 2027 upon delivery of
contracted volumes. The group would then no longer pay rebates on
coal exports and could export around one million tonnes per annum
of low-grade met coal, instead of selling it as thermal coal to
Stanwell at below market rates.
Metrics to Improve from 2026: Fitch estimates CRN's EBITDA net
leverage will improve to 4.4x in 2026 and 2.2x by end-2027. In
2026, Fitch expects CRN to benefit from a full year of higher
output and lower costs, which should be seen from 2H25. Its 2027
expectations incorporate the uplift from the expiry of the Stanwell
contract. Fitch forecasts EBITDA interest coverage to improve to
2.0x in 2026 and 4.0x in 2027, and a broadly neutral FCF profile by
end-2027.
Rated on Standalone Basis: Fitch rates CRN based on its standalone
credit profile, despite Coronado Group LLC's 50.4% stake. Fitch
does not have any information on Coronado Group, held by Energy &
Minerals Group (EMG), a private equity firm. Fitch sees limited
risk to CRN's credit profile from large dividends or other forms of
exceptional returns to Coronado Group and EMG. CRN is listed in
Australia and has a majority of independent board directors. Fitch
thinks CRN's share price would fall if EMG exerted undue influence
on CRN's decisions, hurting EMG's profits.
Secured Notes Rating: Fitch rates the senior secured notes at
'BB-'/'RR2'. The RR is constrained under Fitch's criteria, as Fitch
treats the notes effectively as having second lien status behind
the RCF.
Peer Analysis
CRN's ratings can be compared with other rated met coal producers
Golden Energy and Resources Pte. Ltd. (GEAR, B+/Stable) and
Mongolian Mining Corporation (MMC, B+/Stable).
GEAR owns 59% of Australia-based met coal mining company Stanmore
Resources and 70% stake in an Illawarra met coal asset. GEAR's
assets have a better cost position than CRN's, within the third
quartile of the global met coal cost curve. In addition, Fitch
expects GEAR's average proportionately consolidated EBITDA over
2025-2027 to be significantly higher than CRN's average. These
business profile advantages over CRN underpin GEAR's higher IDR.
MMC is the largest producer and exporter of high-quality hard met
coal in Mongolia. MMC has significantly stronger financial metrics
than CRN. This drives MMC's higher rating, despite its IDR being
affected by the concentration of end customers in northern China
and high country-risk for its mining operations in Mongolia.
Key Assumptions
Fitch's Key Assumptions Within the Rating Case for CRN:
- Total coal sales volume, including thermal coal, of 18 mt in 2025
and 19 mt from 2026 (2024: 16 mt);
- Average realised price for coal sales of around USD120/t over
2025-27 (2024: USD155/t);
- Unit cost of coal revenues declines by USD20/t in 2025 and
further by around USD10/t in 2026;
- Average annual capex of around USD180 million over 2025-2027
(2024: USD248 million);
- Flat annual dividend of USD17 million during 2025-2027.
Recovery Analysis
Key Recovery Rating Assumptions
- The recovery analysis assumes that CRN would be liquidated in
bankruptcy, based on its estimate of higher recoveries for
debtholders in case of liquidation compared with CRN's
going-concern enterprise value.
- Fitch has assumed a 10% administrative claim.
- Fitch uses an 80% advance rate against the value of trade
receivables as of end-2024 and a 50% advance rate against the value
of inventory to calculate the liquidation value. This is in line
with typical advance rates Fitch uses for receivables and
inventories. Fitch uses a 25% advance rate against the value of
property, plant and equipment, which is lower than Fitch's typical
assumption. The higher discount is based on its assessment that the
liquidation value could be hampered by the old age of a large
portion of CRN's plant and equipment.
- Fitch assumes that the USD150 million RCF will be fully drawn and
practically rank ahead of the USD400 million senior secured notes
in the event of liquidation. The RCF has first lien status over
trade receivables and inventories, among other assets, which are
more easily liquidated than other assets. This effectively renders
the US dollar notes second lien, in its view.
The assumptions result in an 'RR2' Recovery Rating for the US
dollar notes under Fitch's Corporate Recovery Ratings and
Instrument Ratings Criteria.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
- A deterioration in liquidity, potentially due to an inability to
obtain additional financing;
- Fitch's expectations for EBITDA net leverage above 3.5x for a
sustained period;
- Fitch's expectations for EBITDA interest coverage below 2.5x for
a sustained period.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
- Fitch may revise the Outlook to Stable if performance is better
than the sensitivities for negative rating action.
Liquidity and Debt Structure
CRN had USD339 million of cash as of 31 December 2024. In addition,
it had USD129 million undrawn under the RCF, which matures in
August 2026. The group had USD450 million of debt as of end-2024,
mainly comprising USD400 million in secured notes due in 2029.
CRN does not have material debt maturities in 2025 and 2026.
However, Fitch forecasts large negative FCF in 2025-2026, which
would impair CRN's liquidity in the absence of additional
financing. CRN had secured a waiver under the RCF for the interest
coverage ratio covenant until 30 March 2025, and is working with
the lenders to obtain further covenant flexibility.
Fitch assumes that CRN will be able to draw on its unused RCF and
secure additional financing in the next few months to fund
operations, helped by an improvement in its business profile.
However, CRN's liquidity is at risk from a sustained weakness in
coal prices.
Issuer Profile
CRN is an ASX-listed miner of met coal and some thermal coal. It
has assets in Australia and the US, and sold 16 mt of coal in
2024.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
Fitch rates CRN based on its standalone credit profile even though
Coronado Group holds a majority 50.4% stake. Coronado Group is a
private company on which information is unavailable and is
ultimately held by EMG, a specialised natural resource-focused
private equity firm. Fitch believes risk to CRN's credit profile
from large dividends or other forms of exceptional returns and
support to Coronado Group and EMG is limited. CRN is listed on the
Australian Securities Exchange (ASX) and has a majority of
independent directors on its board. Fitch thinks the share price
would fall, hurting EMG's profits, if EMG exerts undue influence on
CRN's decisions. These factors have enabled us to rate CRN, despite
lack of detailed information on parent.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Coronado Global
Resources Inc. LT IDR B Downgrade B+
Coronado Finance
Pty Ltd
senior secured LT BB- Affirmed RR2 BB-
DK HEAVY: First Creditors' Meeting Set for April 16
---------------------------------------------------
A first meeting of the creditors in the proceedings of DK Heavy
Plant Services Pty Ltd and Precision Auto and Fleet Pty Ltd will be
held on April 16, 2025 at 11:00 a.m. via Microsoft Teams.
Sule Arnautovic of Salea Advisory was appointed as administrator of
the company on April 7, 2025.
HARBOURVIEW REALTY: First Creditors' Meeting Set for April 15
-------------------------------------------------------------
A first meeting of the creditors in the proceedings of Harbourview
Realty Pty Ltd will be held on April 15, 2025 at 11:00 a.m. at
Level 10/55 Clarence Street, in Sydney, NSW, and via virtual
meeting technology.
Anthony Phillip Wright and Mohammad Mirzan Bin Mansoor of Olvera
Advisors were appointed as administrators of the company on April
3, 2025.
INFINITE GREEN: First Creditors' Meeting Set for April 17
---------------------------------------------------------
A first meeting of the creditors in the proceedings of:
- Infinite Green Energy Limited;
- Infinite Blue Energy Management Group Pty Ltd;
- Infinite Blue Energy Group Pty Ltd;
- Arrowsmith HP2 Pty Ltd;
- Arrowsmith HP1 Pty Ltd;
- NHP TopCo Pty Ltd;
- NSF HoldCo Pty Ltd;
- NHP HoldCo Pty Ltd;
- MEG HP1 Pty Ltd; and
- NHP OpCo Pty Ltd
will be held on April 17, 2025 at 11:00 a.m. via videoconference
only.
Richard Tucker and Jared Palandri of KordaMentha were appointed as
administrators of the company on April 7, 2025.
OMEGA GROUP: First Creditors' Meeting Set for April 16
------------------------------------------------------
A first meeting of the creditors in the proceedings of Omega Group
Enterprises Pty Ltd will be held on April 16, 2025 at 11:00 a.m. at
the offices of Worrells, Suite 5B, 55 Kembla Street, in
Wollongong, NSW, and virtually.
Stephen John Hundy and Daniel Ivan Cvitanovic of Worrells were
appointed as administrators of the company on April 4, 2025.
REACON AUSTRALIA: Federal Court Challenge Adjourned to May 9
------------------------------------------------------------
Sprinter reports that the Federal Court injunction that attempted
to wind-up Reacon Australia has been adjourned allowing more time
for the business to be restructured.
According to Sprinter, the wind-up order that was put forward by
Reacon Australia creditors and heard in the Federal Court of
Australia on April 11, has been adjourned to May 9.
The administrators for Reacon Australia and MMW3 Degrees, Cathro &
Partners, told Sprinter they will now move forward with the usual
next steps for a voluntary administration process.
"The adjournment will give the administrators time to continue
their restructuring efforts and for a report to creditors to be
issues on or around the 9th of May," company administrator, Andrew
Blundell from Cathro & Partners, told Sprinter.
"At that time creditors will be advised of any Deed of Company
Arrangement proposal that has been put forward and they will be in
a position to determine the future of the companies."
Sprinter relates that Mr. Blundell has advised that information
regarding the nature of the major creditors will be forthcoming
over the coming days.
"Currently it is business as usual, the administrators are in a
position where they are being supported and the employees are doing
a great job under difficult circumstances."
Cathro and Partners were appointed administrators Reacon Australia
and MMW3 Degrees on April 7, the same firm that was also appointed
to manage Starleaton when it was placed into voluntary
administration.
It was confirmed on April 10 that Sydney-based Westman Printing had
purchased Reacon Group - the parent company of Reacon Australia and
MMW3 Degrees, Sprinter relays.
Westman Printing - a company with 45 years of print manufacturing
history – has been owned by Vik Gulati and his wife Manasa for
the last 20 years.
Westman has a strong understanding of the Reacon business as it has
been a supplier of services to the companies under administration
for several years.
Mr. Gulati told Sprinter he has purchased the parent company with a
view to restructuring the two businesses currently in voluntary
administration that specialise as an omni-channel provider of
mailing, marketing, and print services.
Mr. Gulati also confirmed he intends to retain the majority of the
workforce of Reacon Australia and MMW3 Degrees under its
leadership, with operations continuing on a "business as usual"
basis during the voluntary administration process.
Mr. Gulati said the move, once completed, will bolster Westman's
portfolio, integrating Reacon's advanced equipment – including
the Fujifilm 1160CF acquired in 2024 – along with skilled talent
and access to new markets, Sprinter adds.
S.A.I.S.S. SOFTWARE: First Creditors' Meeting Set for April 16
--------------------------------------------------------------
A first meeting of the creditors in the proceedings of S.A.I.S.S.
Software Group Pty Ltd (formerly known as Systema A.I. Pty Ltd)
will be held on April 16, 2025 at 10:00 a.m. via videoconference
only.
Andrew Hewitt and Matthew Byrnes of Grant Thornton Australia were
appointed as administrators of the company on April 4, 2025.
STRONGROOM LTD: More Than 10 Bidder Lined Up to Acquire Startup
---------------------------------------------------------------
StartUp Daily reports that more than 10 bids were submitted to the
voluntary administrators of failed startup StrongRoom AI, hoping to
snap up the value left in the business, despite it being mired in
legal action over allegedly faked revenue figures and a VC investor
wanting its AUD10 million back.
According to StartUp Daily, final offers for what remains of
StrongRoom are due this week alongside binding offers from
administrator Todd Gammel from HLB Mann Judd, who worked to
finalise potential deals.
In the meantime, more than 20 staff were let go last week, cutting
the headcount in half, as the company's assets remain frozen
pending further Federal Court hearings, StartUp Daily relates.
They won't be paid unless Sydney VC EVP, which tipped in AUD10.4
million for a Series A earlier this year, ends its legal bid to get
to the front of the queue for its cash, or the court agrees to
unfreeze the funds to the administrator.
StartUp Daily says Mr. Gammel has been negotiating with all
involved in a bid to get the staff paid as their top priority.
"We're appreciative of everyone's patience, particularly the staff,
given the ride they've had over the last few weeks," he said.
"There's lots of complexity here. We're trying to work through it
with cooperation from all of the stakeholders."
StartUp Daily notes that the seven-year-old medications management
software looked a startup success story last month when it
announced a AUD17 million Series A raise led by EVP, which invested
AUD10.4 million. But less than a fortnight later, it all came
crashing down, when EVP called in police and investor Misha Saul
subsequently alleged that company's revenue and debt figures were
"wilful fraud".
Within days, lender Paddington Street Finance called receivers to
seize control of the banking assets, StrongRoom's board placed the
business in voluntary administration hours later. EVP then launched
Federal Court legal action and successfully applied for an interim
freeze on the company's assets listing 13 defendants, including
five directors – 2 of them cofounders – and the startup's
administrators and receivers, StartUp Daily relates.
Documents before Justice Roger Derrington in the Federal Court in
Brisbane last week said that EVP was "profoundly misled" with the
cofounders engaged in "false, misleading or deceptive conduct" and
"deliberate fraud" to secure the investment from EVP's AUD41
million Opportunities Fund, according to StartUp Daily.
EVP alleges the Melbourne startup claimed to be profitable, but was
in fact losing AUD800,000 a month, and misled them on debt levels
by more than AUD4 million.
An affidavit from Saul outlined a conversation he had with Mito
about the company's revenue and financials where the cofounder
admitted to booking loans and other funds as customer revenue, and
conceded the revenue figures "may be inaccurate", but Mito told
Saul he "didn't intend to mislead you".
Saul alleges he said to Mito, in the presence of fellow director
and investor Rohan Gray, from Artesian Investments, that: "You
faked the revenue and customer numbers across different product
lines and just walked us through how much of each line is fake
versus real. That is wilful fraud, isn't it?"
He claims Mito replied "Yes". Defendants have begun filing their
own affidavits in response to the EVP allegations, including
cofounder Christoper Durre and investor and director Peter
Bruce-Clark, but those details have yet to be revealed
The matter is due to return to court on April 17, StartUp Daily
relays.
About Strong Room
Headquartered in Melbourned, Australia, Strong Room --
https://strongroom.ai/ -- is a drug management platform that uses
AI analytics and facial recognition technology to reduce adverse
drug events in pharmacy, hospital, and aged care facility settings.
The firm offers solutions and technologies including automated
patient verification, powerful reporting, patient alerts, automated
stock management, regular and secure back-ups, multiple terminals,
3D facial mapping, and biometric identification.
As reported in the Troubled Company Reporter-Asia Pacific,
financiers for Melbourne startup Strongroom AI have forced the
company into administration, amid concerns about the company's
accounts. On March 28, 2025, new regulatory filings with corporate
regular ASIC revealed that Strong Room Technology Pty Ltd was in
external administration.
Todd Gammel, Barry Taylor, Matthew Levesque-Hocking from HLB Mann
Judd were appointed as administrators of the company on March 28,
2025. Walsh & Associates has also been appointed as receiver for
banking assets in the startup at the behest of Paddington Street
Finance.
TORRENS 2025-1: S&P Assigns BB+(sf) Rating on Class E Notes
-----------------------------------------------------------
S&P Global Ratings assigned its ratings to six classes of prime
residential mortgage-backed securities (RMBS) issued by Perpetual
Trustee Co. Ltd. as trustee for TORRENS Series 2025-1 Trust.
The ratings assigned to the prime floating-rate RMBS reflect the
following factors.
The credit risk of the underlying collateral portfolio and the
credit support provided to each class of notes are commensurate
with the ratings assigned. Credit support is provided by
subordination, lenders' mortgage insurance (LMI), and excess
spread, if any. S&P's assessment of credit risk takes into account
Bendigo and Adelaide Bank Ltd.'s (BEN) underwriting standards and
approval process, which are consistent with industry-wide
practices; BEN's servicing quality; and the support provided by the
LMI policies on 34.9% of the portfolio.
The rated notes can meet timely payment of interest and ultimate
payment of principal under the rating stresses. Key rating factors
are the level of subordination provided, the LMI cover, the
interest-rate swaps, the liquidity facility, and the principal draw
function. All rating stresses are made on the basis that the trust
does not call the notes at or beyond the call-option date, and that
all rated notes must be fully redeemed via the principal waterfall
mechanism under the transaction documents.
There is an extraordinary expense reserve of A$150,000 funded by
BEN on the closing date to meet extraordinary expenses. The reserve
is to be topped up from excess spread, if any, to the extent it has
been drawn.
S&P's rating also considers the counterparty exposure to BEN as
interest-rate swap provider and liquidity facility provider as well
as to National Australia Bank Ltd. as standby fixed-rate swap
provider and collections account provider. The interest-rate swaps
will be provided to hedge the interest rate risk between the
fixed-rate mortgage loans and the floating-rate obligations on the
notes. The transaction documents for the swaps and facilities
include downgrade language consistent with S&P Global Ratings'
counterparty criteria.
S&P also has factored into its rating the legal structure of the
trust, which is established as a special-purpose entity and meets
its criteria for insolvency remoteness.
Ratings Assigned
TORRENS Series 2025-1 Trust
Class A, A$690.000 million: AAA (sf)
Class AB, A$27.150 million: AAA (sf)
Class B, A$14.700 million: AA (sf)
Class C, A$8.325 million: A+ (sf)
Class D, A$5.025 million: BBB+ (sf)
Class E, A$1.950 million: BB+ (sf)
Class F, A$2.850 million: Not rated
TURQUOISE I 2025-1: S&P Assigns B(sf) Rating on Class F Notes
-------------------------------------------------------------
S&P Global Ratings assigned its ratings to seven classes of prime
residential mortgage-backed securities (RMBS) issued by Permanent
Custodians Ltd. as trustee of Turquoise I Series 2025-1 Trust.
Turquoise I Series 2025-1 Trust is a securitization of prime
residential mortgages originated by Bluestone Group Pty Ltd. and
Bluestone Mortgages Pty Ltd. (collectively Bluestone).
The ratings S&P has assigned to the floating-rate RMBS reflect the
following factors.
The credit risk of the underlying collateral portfolio and the
credit support provided to each class of notes are commensurate
with the ratings assigned. Note subordination and excess spread
provide credit support. S&P's assessment of credit risk considers
Bluestone's underwriting standards and approval process, and
Bluestone's strong servicing quality.
The rated notes can meet timely payment of interest and ultimate
payment of principal under the rating stresses. Key rating factors
are the level of subordination provided, the provision of a
liquidity facility, the principal draw function, the yield reserve,
and the provision of an extraordinary expense reserve. Our analysis
is on the basis that the rated notes are fully redeemed via the
principal waterfall mechanism under the transaction documents by
their legal final maturity date, and S&P's assume the notes are not
called at or beyond the call-option date.
S&P's ratings also consider the counterparty exposure to
Commonwealth Bank of Australia as bank account provider and
National Australia Bank Ltd. as liquidity facility provider. The
transaction documents for the facilities include downgrade language
consistent with S&P Global Ratings' counterparty criteria.
S&P has also factored into its ratings the legal structure of the
trust, which is established as a special-purpose entity and meets
its criteria for insolvency remoteness.
Ratings Assigned
Turquoise I Series 2025-1 Trust
Class A1, A$800.00 million: AAA (sf)
Class A2, A$132.00 million: AAA (sf)
Class B, A$27.00 million: AA (sf)
Class C, A$20.00 million: A (sf)
Class D, A$10.00 million: BBB (sf)
Class E, A$6.00 million: BB (sf)
Class F, A$1.50 million: B (sf)
Class G1, A$1.75 million: Not rated
Class G2, A$1.75 million: Not rated
=========
C H I N A
=========
AIXIN LIFE: Delays 10-K Filing Due to Financial Statement Review
----------------------------------------------------------------
AiXin Life International, Inc. filed a Notification of Late Filing
on Form 12b-25 with the U.S. Securities and Exchange Commission,
informing that it is unable to timely file its Annual Report on
Form 10-K for the year ended December 31, 2024, due to a delay in
completing the financial statements required to be included
therein, and the review procedures related thereto, which delay
could not be eliminated by the Company without unreasonable effort
and expense.
The Company's financial statements have not been sufficiently
completed so as to enable the Company to provide appropriate
guidance with respect to its results of operations for the year
ended December 31, 2024, as compared to its results of operations
for 2023. The Company, however, does anticipate that its net loss
for Fiscal 2024 will exceed the net loss for Fiscal 2023.
About AiXin Life International
Sichuan Province, China-based AiXin Life International, Inc. is a
Colorado holding company and conducts substantially all of its
operations through its operating companies established in the
People's Republic of China, or the PRC. The Company focuses on
providing health and wellness products to the growing middle class
in China. It currently develops, manufactures, markets, and sells
premium-quality healthcare, nutritional products, and wellness
supplements, including herbs and greens, traditional Chinese
remedies, functional products such as weight management products,
probiotics, foods, and drinks. The Company also provides
advertising and marketing services to clients who engage us to
market and distribute their products.
Diamond Bar, California-based KCCW Accountancy Corp., the Company's
former auditor, issued a "going concern" qualification in its
report dated April 5, 2024, citing that the Company incurred
recurring losses from operations and has an accumulated deficit,
which raises substantial doubt about its ability to continue as a
going concern.
COUNTRY GARDEN: Wins Key Bondholder Support for Offshore Debt Plan
------------------------------------------------------------------
Yicai Global reports that Country Garden Holdings said it had
secured the support of a major bondholder group for its offshore
debt restructuring plan, describing the agreement as "significant
progress."
Country Garden has reached an initial agreement with a group of
bondholders that owns almost 30 percent of the firm's outstanding
offshore debt, the Foshan-based builder announced on April 11,
Yicai relays. It called on other creditors to also support the
restructuring deal.
Yicai relates that the proposed overhaul would write off about
USD14.1 billion of Country Garden's outstanding foreign debt, along
with all accrued and unpaid interest. It offers creditors various
options, including conversion into cash, zero-coupon and
low-interest mandatory convertible bonds, and debt-to-equity swap
on maturity of those bonds, and long-term low-interest bonds.
According to Yicai, Country's Garden expects the restructuring to
reduce its liabilities by as much as USD11 billion and lower its
weighted average financing costs to 1 percent, 2 percent, or 2.5
percent from about 5.8 percent. The firm aims to complete the
restructuring by the end of the year.
The company also set out a new management incentive plan, under
which 5 percent of its fully diluted ordinary shares may be awarded
to the management team to encourage them to execute the company's
business plan successfully, Yicai relays.
Once China's largest real estate developer with sales of CNY441.1
billion (USD60.3 billion) in 2022, Country Garden defaulted in
October 2023 following an overly aggressive expansion and
industry-wide downturn.
The company recorded its first annual loss of CNY6.1 billion
(USD826 million) in 2022, which grew to CNY178.4 billion the year
after. However, it managed to shrink the loss by 82 percent to
CNY32.8 billion (USD4.5 billion) last year.
Country Garden had total debt of about CNY253.5 billion as of Dec.
31, with CNY226.8 billion of that being short-term liabilities,
Yicai discloses citing the company's annual earnings report
released on March 28. Total cash reached CNY29.9 billion, including
restricted cash of CNY23.5 billion.
While its total assets exceeded CNY1.03 trillion (USD142.8
billion), total liabilities were about CNY984.6 billion, leaving
net assets of around CNY51.3 billion.
About Country Garden Holdings
Country Garden Holdings Company Limited (HKEX:2007), an investment
holding company, invests, develops, and constructs real estate
properties primarily in Mainland China. The company operates in two
segments, Property Development and Construction. It develops
residential projects, such as townhouses and condominiums; and car
parks and retail shops. The company also develops, operates, and
manages hotels. In addition, it researches and develops robots;
sells electronic hardware and food; and provides interior
decoration, agriculture, landscape design, investment and
management consulting, cultural activity planning, and real estate
consulting services.
On Feb. 27, 2024, Kingboard Holdings-backed money lender Ever
Credit filed a winding-up petition against Country Garden to the
Hong Kong High Court for non-payment of a US$205 million loan.
Country Garden hired Kroll to carry out a liquidation analysis in
March 2024. Kroll, the New York-headquartered financial advisory
firm, is expected to conduct an independent business review of
Country Garden before projecting a recovery rate for the
developer's creditors under a liquidation scenario, according to
Reuters.
The developer defaulted on US$11 billion of offshore bonds in 2023
and is in the process of an offshore debt restructuring.
=========
I N D I A
=========
ADITYA AGRO: ICRA Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
ICRA has kept the Long-Term rating of Aditya Agro Foods (AAF) in
the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 22.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long Term- 5.00 [ICRA]D; ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain under
'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with AAF, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Aditya Agro Foods (AAF) was incorporated as a partnership firm in
the year 2009 and is engaged in the milling of paddy to producing
raw and boiled rice. The firm is promoted by Mr. Rajendra Reddy and
his family members who have extensive experience in the rice
milling industry. The firm's rice mill is located near Mutchumilli
village in East Godavari district of Andhra Pradesh with an
installed production capacity of 72,000 MTPA.
ARENE LIFE: ICRA Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------
ICRA has kept the Long-Term and Short-term ratings of Arene Life
Sciences Limited (ALSL) in the 'Issuer Not Cooperating' category.
The rating is denoted as [ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short Term- 5.00 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long Term/ 3.00 [ICRA]B+(Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Non-Fund Based Rating Continues to remain
Others under issuer not cooperating
category
Long Term- 9.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with ALSL, ICRA has been trying to seek information from the entity
so as to monitor its performance Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Incorporated in 2004, Arene Life Sciences Limited (ALSL) is engaged
in the manufacturing of Active Pharmaceutical Ingredients (API) and
Drug Intermediates. The manufacturing unit is located near
Patancheru, Hyderabad. The company is promoted by experienced
management with more than 3 decades of experience in chemical
engineering and organic chemistry. Antiretroviral segment is the
major revenue contributor to the company over the years. S.R.Drugs
& Intermediates Private Limited (SRD), engaged in the manufacturing
of mono chloro acetic acid and intermediate chemicals is the major
shareholder of ALSL. The other group companies are Srichaitanya
Chlorides Private Limited, engaged in the manufacturing of
intermediate chemicals and AVR Organics Private Limited, involved
in manufacture of high grade chemic.
BABA ISPAT: ICRA Lowers Rating on INR14cr LT Loan to B+
-------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Baba
Ispat (P) Ltd (BIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 14.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating Downgraded
Cash Credit from [ICRA]BB+(Stable) ISSUER
NOT COOPERATING and continues
to remain under the 'Issuer
Short Term- 1.00 [ICRA]B+ (Stable) ISSUER NOT
Non Fund Based- COOPERATING; Rating Downgraded
Others from [ICRA]BB+(Stable) ISSUER
NOT COOPERATING and continues
to remain under the 'Issuer
Rationale
The rating is downgrade because of lack of adequate information
regarding BIPL performance and hence the uncertainty around its
credit risk. ICRA assesses whether the information available about
the entity is commensurate with its rating and reviews the same as
per its "Policy in respect of non-cooperation by a rated entity"
available at www.icra.in. The lenders, investors and other market
participants are thus advised to exercise appropriate caution while
using this rating as the rating may not adequately reflect the
credit risk profile of the entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with Baba Ispat (P) Ltd., ICRA has been trying to seek information
from the entity so as to monitor its performance. Further, ICRA has
been sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Incorporated in 2002, Baba Ispat (P) Ltd (BIPL) produces mild steel
(MS) angles, MS channels and MS flats with an installed capacity of
60,000 metric tonnes per annum (MTPA). The company commenced its
operation in November 2004. The manufacturing facility of the
company is situated in Raniganj, Burdwan (West Bengal).
BYJU'S: Glas Trust Rejects Founder's Fraud, Collusion Allegations
-----------------------------------------------------------------
The Economic Times reports that Glas Trust, which represents a
group of US entities that lent US$1.2 billion to Byju's, has denied
allegations of collusion and fraud made by the company's founder,
Byju Raveendran, calling them baseless and fabricated.
"Byju's latest allegations should be seen for what they are: yet
another desperate and lawless act to refuse accountability for his
misconduct, following an extensive judicial process that resulted
in T&L (Think & Learn) being placed into insolvency proceedings,"
it said responding to ET's queries.
Earlier, Mr. Raveendran said in a post on X that he had lodged a
police complaint against former insolvency resolution professional
Pankaj Srivastava, Glas Trust and some employees of consulting firm
EY, according to ET.
A whistleblower from EY India had alleged that EY worked with Glas
Trust and was appointed by Srivastava to assist him in handling the
insolvency proceedings of Think & Learn, the parent company of
Byju's.
"Glas will take all appropriate steps to continue to vindicate its
name and hold Byju and his cohorts accountable for the harm he has
caused to his lenders as well as thousands of T&L's customers and
families," Glas added.
The matter relates to Byju's insolvency. ET notes that the case
involving the alleged fraud flagged by the whistleblower is
currently being heard by the National Company Law Tribunal (NCLT)
and its appellate body.
It came to light after the NCLT approved the appointment of EY
employee Shailendra Ajmera as the new resolution professional in
February, replacing Srivastava.
In January, the NCLT directed the Insolvency and Bankruptcy Board
of India to initiate disciplinary action against Srivastava, who
was removed as the resolution professional after it was found that
he had misled the tribunal, ET recalls.
Separately, members of a consortium that lent $1.2 billion to
Byju's have filed a lawsuit against Mr. Raveendran, his wife Divya
Gokulnath, and "consigliere" Anita Kishore. On April 10, the
lenders said that the three of them planned and executed a scheme
to hide and misappropriate $533 million from the loan proceeds.
This development follows a recent Delaware Bankruptcy Court ruling
that confirmed multiple fraudulent transfers and theft, ET adds.
About Byju's
Based in Bengaluru, Karnataka, India, Byju's operates an online
learning platform intended to deliver engaging and accessible
education. The company's platform makes use of original content,
watch-and-learn videos, animations, and interactive simulations
that make learning contextual, visual, and practical, enabling
students to receive a personalized educational experience.
As reported in the Troubled Company Reporter-Asia Pacific, the
National Company Law Tribunal on July 16, 2024 ordered insolvency
proceedings against the company after a complaint by the Board of
Control for Cricket in India (BCCI) for not paying US$19 million in
dues. Pankaj Srivastava was appointed as the interim resolution
professional.
Reuters said Byju's has suffered numerous setbacks in recent years,
including boardroom exits and a tussle with investors who accused
CEO Byju Raveendran of corporate governance lapses, job cuts and a
collapse in its valuation to less than $3 billion. Byju's has
denied any wrongdoing.
The TCR-AP relayed that the National Company Law Appellate Tribunal
(NCLAT) on Aug. 2, 2024, accepted the settlement between Byju
Raveendran and the BCCI, thus removing Byju's parent Think and
Learn from the insolvency resolution process.
However, in October 2024, the Supreme Court quashed an earlier
NCLAT ruling approving the settlement, according to The Economic
Times.
The TCR-AP, citing Moneycontrol, reported on Jan. 26, 2024, that
foreign lenders, who collectively extended more than 85% of Byju's
$1.2 billion term loan, have filed an insolvency petition against
the online tutor in India. Moneycontrol related that the bankruptcy
petition was filed in January 2024 in the Bengaluru bench of the
National Company Law Tribunal (NCLT), the people said, requesting
anonymity.
BYJU's Alpha, Inc., a U.S. unit of Byju's, sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No.
24-10140) on Feb. 1, 2024. In the petition signed by Timothy R.
Pohl, chief executive officer, the Debtor disclosed up to $1
billion in assets and up to $10 billion in liabilities.
Alleged creditors of Epic! Creations, also a U.S. unit, sought an
involuntary petition under Chapter 11 of the the U.S. Bankruptcy
Code against Epic! Creations (Bankr. D. Del. Case No. 24-11161) on
June 5, 2024.
BYJU'S: HC Orders to Preserve Emails Amid Insolvency Proceedings
----------------------------------------------------------------
Deccan Herald reports that the High Court of Karnataka on April 11
directed the Resolution Professional in the matter concerning Think
and Learn Private Limited (TLPL), a firm providing online
educational services through an application called 'Byjus', to
preserve all emails and conversations between stakeholders in the
case. It may be required for the Corporate Insolvency Resolution
Process (CIRP) or investigation, as the case may be.
Deccan Herald says Justice M Nagaprasanna granted this limited
indulgence in an interim order after hearing a petition filed by
Byju Raveendran, one of the promoters and suspended director of
TLPL.
Deccan Herald relates that the counsel for the petitioner contended
that if the emails are deleted, it would have an adverse effect, as
they are the primary evidence of the conversation or interaction
between the stakeholders of the company with regard to the subject
matter pending before the National Company Law Tribunal (NCLT).
It was further submitted that the emails should not be permitted to
be deleted, as they are necessary for the purpose of
investigation.
On the other hand, the government advocate submitted that the
investigation in a crime registered on the issue at the High
Grounds police station in Bengaluru has been stayed by a coordinate
bench of the high court in the petition moved by the accused,
Deccan Herald reports. Therefore, the police have not proceeded
with the investigation in light of the interim order, and the
prayers sought by the petitioner to expedite the investigation or
the production of the case diary in the crime, if considered, would
run counter to the interim order granted by the coordinate bench.
According to Deccan Herald, Justice Nagaprasanna noted that the
other prayers in the petition, including the minutes of the
Committee of Creditors (COC) held on April 8, 2025, have to be
placed before the appropriate authority.
He further cited the Supreme Court judgment, which clearly
specified that the Insolvency and Bankruptcy Code (IBC) is a
complete code by itself, with adequate appellate remedy available
for the aggrieved party to call in question either before the LT or
NCLAT (Appellate Tribunal).
"Therefore, those proceedings which the petitioners have sought to
challenge, i.e., minutes of the COC meeting or otherwise have to be
agitated only before the NCLT/NCLAT, as the case would be. It is
open to avail of that remedy. The remedy of filing a writ petition
(WP) calling in question those proceedings is unavailable in the
light of judgment of the Supreme Court," the court said, and
adjourned the matter to April 21, 2025, Deccan Herald relays.
About Byju's
Based in Bengaluru, Karnataka, India, Byju's operates an online
learning platform intended to deliver engaging and accessible
education. The company's platform makes use of original content,
watch-and-learn videos, animations, and interactive simulations
that make learning contextual, visual, and practical, enabling
students to receive a personalized educational experience.
As reported in the Troubled Company Reporter-Asia Pacific, the
National Company Law Tribunal on July 16, 2024 ordered insolvency
proceedings against the company after a complaint by the Board of
Control for Cricket in India (BCCI) for not paying US$19 million in
dues. Pankaj Srivastava was appointed as the interim resolution
professional.
Reuters said Byju's has suffered numerous setbacks in recent years,
including boardroom exits and a tussle with investors who accused
CEO Byju Raveendran of corporate governance lapses, job cuts and a
collapse in its valuation to less than $3 billion. Byju's has
denied any wrongdoing.
The TCR-AP relayed that the National Company Law Appellate Tribunal
(NCLAT) on Aug. 2, 2024, accepted the settlement between Byju
Raveendran and the BCCI, thus removing Byju's parent Think and
Learn from the insolvency resolution process.
However, in October 2024, the Supreme Court quashed an earlier
NCLAT ruling approving the settlement, according to The Economic
Times.
The TCR-AP, citing Moneycontrol, reported on Jan. 26, 2024, that
foreign lenders, who collectively extended more than 85% of Byju's
$1.2 billion term loan, have filed an insolvency petition against
the online tutor in India. Moneycontrol related that the bankruptcy
petition was filed in January 2024 in the Bengaluru bench of the
National Company Law Tribunal (NCLT), the people said, requesting
anonymity.
BYJU's Alpha, Inc., a U.S. unit of Byju's, sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No.
24-10140) on Feb. 1, 2024. In the petition signed by Timothy R.
Pohl, chief executive officer, the Debtor disclosed up to $1
billion in assets and up to $10 billion in liabilities.
Alleged creditors of Epic! Creations, also a U.S. unit, sought an
involuntary petition under Chapter 11 of the the U.S. Bankruptcy
Code against Epic! Creations (Bankr. D. Del. Case No. 24-11161) on
June 5, 2024.
DEEPTHY FENISHERS: ICRA Keeps B Debt Rating in Not Cooperating
--------------------------------------------------------------
ICRA has kept the Long-Term rating of Deepthy Fenishers in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.00 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Deepthy Fenishers, ICRA has been trying to seek information
from the entity so as to monitor its performance. Further, ICRA has
been sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Deepthy Fenishers is a partnership firm established in 1997 and is
providing fabric processing services on job-work basis. The firm is
located in Tirupur (Tamil Nadu) with capabilities for tubular and
open width compacting. The firm was promoted by Mr. Subramaniam and
currently has four partners. Mr. Subramaniam is the managing
partner of the firm having experience of more than a decade in the
textile industry. The firm caters to garment manufacturers
located in and around Tirupur providing fabric processing
services.
G.M. FABRICS: ICRA Withdraws B+ Rating on INR58cr Term Loan
-----------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
G.M. Fabrics Private Limited, based on the request of the company
and the No Due Certificate or Closure certificate and No Objection
Certificate received from its lender's. The Key Rating Drivers and
their description, Liquidity Position, Rating Sensitivities, Key
Financial Indicators have not been captured as the rated
instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 80.00 [ICRA]B+ (Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Fund Based Withdrawn
Cash Credit
Long Term/ 20.00 [ICRA]B+ (Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Withdrawn
Long Term- 58.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Withdrawn
Term Loan
The company manufactures fabrics for upholstery and drapery
catering to both domestic and international markets. It offers a
wide variety of fabrics including jacquard decorative fabrics,
plain sheer, and embroidery on sheer, digitally printed plain,
jacquard and sheer etc. In a small way the company is also engaged
in manufacturing shirting fabrics for men.
JSK MARKETING: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings for the Bank
facilities of JSK Marketing Limited (JSK) in the 'Issuer Not
Cooperating' category. The rating are denoted as "[ICRA]D; ISSUER
NOT COOPERATING/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short Term- (29.00) [ICRA]D; ISSUER NOT COOPERATING;
Interchangeable- Rating Continues to remain under
Others the 'Issuer Not Cooperating'
category
Long-term- 50.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with JSK, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
JSK Marketing Limited (JSK) was incorporated in the year 1985 under
the name Kwik Appliances Pvt. Ltd. It was later renamed to JSK
Marketing Private Limited in the year 2006, and to JSK Marketing
Limited in year 2017.Operations commenced under JSK from the year
2007 when the distribution activities being carried out by group
Company, Associated Electrical Agencies, were transferred to the
company. JSK is part of the Jiwarajka Group of Companies which was
started in 1949 by Mr. S R Jiwarajka as a trading company for
radios. The Group is currently involved in varied businesses in
consumer electronics, infrastructure, retail, renewable energy,
telecom, fast moving consumer goods (FMCG) etc.
KARLO AUTOMOBILES: ICRA Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------------
ICRA has kept the Long-Term rating of Karlo Automobiles (P) Ltd in
the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 12.75 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 0.25 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Karlo Automobiles (P) Ltd, ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Incorporated in 1997, Karlo Automobiles Private Limited is an
authorised dealer of MSIL. The company sells and services vehicles
along with spare parts and accessories. KAPL has a 3-S facility
(Sales-Services-Spares) in Bodhgaya, a showroom, a workshop anda
True Value Store in Patna in Bihar. The company is promoted by the
Patna-based Mr. Shivesh Narayan and Mr. Sanjeev Kumar, who have
long experience in the automotive-dealership industry.
KULDEVI COTTON: ICRA Keeps B Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has kept the Long-Term ratings for the Bank facilities of
Kuldevi Cotton Industries in the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]B(Stable) ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 1.25 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 4.45 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Kuldevi Cotton Industries, ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Established in 2013 as a partnership firm, Kuldevi Cotton
Industries is engaged in raw cotton ginning and pressing and cotton
seed crushing. The manufacturing facility of the firm is located at
Rajkot in Gujarat and is equipped with 24 ginning machine sand 1
pressing machine having raw cotton processing capacity of 12,096
metric tonnes per annum(MTPA) and 3 oil expellers having cotton
seed processing capacity of~ 8,460MTPA. The firm was promoted by
Mr. Mahesh Ghodasara along with his
relatives and family members, who have extensive experience in the
cotton industry.
LANTECH PHARMACEUTICALS: ICRA Keeps B+ Ratings in Not Cooperating
-----------------------------------------------------------------
ICRA has kept the Long-Term and Short-term ratings of Lantech
Pharmaceuticals Limited (LPL) in the 'Issuer Not Cooperating'
category. The rating is denoted as [ICRA]B+(Stable)/[ICRA]A4;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short Term- 6.25 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long Term- 6.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 4.84 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with LPL, ICRA has been trying to seek information from the entity
so as to monitor its performance Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Lantech Pharmaceuticals Limited (LPL) was established in August
2008 and is involved in manufacturing of Active Pharma Ingredients
and Intermediates. The manufacturing site is spread over 42 acres
and is located in srikakulam district, Andhra Pradesh. The company
has 80 reactors with working volume of 278KL and capacity of 1200MT
per annum and the distillation capacity of 1800KL per month. The
company is also involved in contract manufacturing for pharma
companies like Sun Pharma, Aurobindo Pharma. The plant is
constructed with WHO-GMP standards and has GMP certificate.
LAXMI BALAJI: ICRA Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has kept the Long-Term rating of Laxmi Balaji Industries (LBI)
in the 'Issuer Not Cooperating' category. The rating is denoted as
[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 0.39 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 12.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 4.11 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with LPL, ICRA has been trying to seek information from the entity
so as to monitor its performance Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Laxmi Balaji Industries (LBI) was setup in the year 2006 and is
engaged in milling of paddy to produce raw and boiled rice. It is
promoted by Mr. V. Mohan Reddy and partners who have an experience
of more than 21 years in the milling industry. The company has a
milling unit in Khanapoor (Nizamabad district) of Andhra Pradesh
with a milling capacity of 70,100 MTPA (8 tonnes per hour).
M V AGRO: ICRA Keeps D Debt Ratings in Not Cooperating Category
---------------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings of M V Agro
Renewable Energy Pvt. Ltd. in the 'Issuer Not Cooperating'
category. The ratings are denoted as "[ICRA]D; ISSUER NOT
COOPERATING/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 4.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term- 11.50 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term/ 0.50 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Unallocated remain under 'Issuer Not
Cooperating' Category
As part of its process and in accordance with its rating agreement
with M V Agro Renewable Energy Pvt. Ltd., ICRA has been trying to
seek information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
M V Agro Renewable Energy Private Limited, incorporated in year
2014, manufactures bio fuel pellets from agro wastes, plant
residues, stems and plant biomass as the primary sources of raw
materials. The company has an installed capacity of 150 tons per
day and its manufacturing facility is located in Praskasham
District, Andhra Pradesh. The company started its operations in
2016.
MAHARAJA SATHYAM: ICRA Keeps B+ Debt Rating in Not Cooperating
--------------------------------------------------------------
ICRA has kept the Long-Term rating of Maharaja Sathyam Industries
Private Limited (MSIPL) in the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]B+(Stable); ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.90 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with MSIPL, ICRA has been trying to seek information from the
entity so as to monitor its performance. Further, ICRA has been
sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Maharaja Sathyam Industries Private Limited (MSIPL), incorporated
in 1981, is a small scale yarn manufacturer with a spindle capacity
of 22,944 spindles. The company predominantly produces
polyester-cotton blended yarn (65:35) and manufactures
polyester-viscose blended yarn and cotton yarn in minor quantities.
The company caters to traders in the domestic market mostly to
weavers around Erode, Ichalkaranji, Surat and Kolkata. MSIPL
largely produces cotton and blended yarn in the
coarse-to-medium count range with average count being 40.
NOBLE EDUCATIONAL: ICRA Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings of Noble
Educational and Charitable Trust in the 'Issuer Not Cooperating'
category. The ratings are denoted as "[ICRA]D; ISSUER NOT
COOPERATING/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 0.25 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term- 14.01 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term/ 0.74 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Unallocated remain under 'Issuer Not
Cooperating' Category
As part of its process and in accordance with its rating agreement
with Noble Educational and Charitable Trust, ICRA has been trying
to seek information from the entity so as to monitor its
performance. Further, ICRA has been sending repeated reminders to
the entity for payment of surveillance fee that became due. Despite
multiple requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Noble Educational and Charitable Trust was incorporated in the year
2009 and manage an engineering college by the name Holy Kings
College of Engineering and Technology located in Ernakulam, Kerala.
The college started functioning from September 2011 and was
affiliated to Mahatma Gandhi University, Kottayam till 2014-15.
From 2015-16 onwards, it is affiliated to A P J Abdul Kalam
Technological University (KTU), previously known as Kerala
Technological University. The college is AICTE approved (All India
Council for Technical Education) and is ISO 9001:2008 certified.
PARAMOUNT INTERNATIONAL: ICRA Keeps D Ratings in Not Cooperating
----------------------------------------------------------------
ICRA has kept the Short-Term rating of Paramount International (PI)
in the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short-term- 10.80 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with PI, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Paramount International (PI) was incorporated on 2008. It is
involved in manufacturing of handicrafts like Candle Stands, Lamps,
Christmas Ornaments etc. made of brass, colored glass, iron,
aluminum etc. The raw materials used at present are Timber, Iron
and Glass. The firm's factory is in Moradabad, U.P. also known as
"Brass City or Peetal Nagri". The firm has no retails outlets and
all the sales are exported mainly to the USA and some European
countries.
PM CARS: ICRA Keeps B+ Debt Ratings in Not Cooperating Category
---------------------------------------------------------------
ICRA has kept the Long-Term and Short-term ratings of Pm Cars Pvt.
Ltd. (PMCPL) in the 'Issuer Not Cooperating' category. The rating
is denoted as [ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short Term- 0.20 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
Long Term/ 1.27 [ICRA]B+(Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain
under issuer not cooperating
category
Long Term- 2.03 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 12.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with PMCPL, ICRA has been trying to seek information from the
entity so as to monitor its performance Further, ICRA has been
sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Incorporated in October 2013, PM Cars Private Limited (PMCPL) is
the sole authorized dealer for passenger vehicles of Honda Cars
India Private Limited for the regions Anantapur, Kurnool and
Kadapa. The company operates 4 showrooms including service centers
across Anantapur, Kurnool and Kadapa. The company is planning to
open a showroom in Hindupur which will be in a rented facility.
SAANVI CLOTHING: ICRA Keeps B Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has kept the Long-Term and Short-term ratings of Saanvi
Clothing Pvt Ltd in the 'Issuer Not Cooperating' category. The
rating is denoted as [ICRA]B(Stable)/[ICRA]A4; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 0.12 [ICRA]B (Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain
under issuer not cooperating
category
Long Term- 8.00 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 1.88 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Saanvi Industries, ICRA has been trying to seek information
from the entity so as to monitor its performance Further, ICRA has
been sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Saanvi Industries was established as a proprietorship concern in
2016 with manufacturing plant in Bangalore and office in Mumbai. It
was incorporated as a private limited company with effect from
April 1, 2019. It is a family owned business with Mr. Dhiren
Rathore and his wife Jinal Rathore as directors. The manufacturing
unit is jointly owned by Jinal Dhiren Rathore and Khubilal
Gulabchnad Rathore in their personal capacity. SI manufactures
women's innerwear under own brand named ENVIE, which began
commercial sales from October 2016 and has presence all over India.
In FY2018, it launched another brand
ENERVE in order to tap modern trade channels like D- Mart and Brand
Factory. Misterio is launched as an initiative for B2B sales and
registered with Reliance Jio in May 2019. SI has more than 80
distributors across India and has recently started contract
manufacturing business for some of the domestic brands as well.
SANDHYA HYDRO: ICRA Lowers Rating on INR83.10cr Term Loan to D
--------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Sandhya
Hydro Power Projects Balargha Private Limited (SHPPBPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 83.10 [ICRA]D; rating downgraded from
Fund based [ICRA]BB+ and removed from rating
Term Loan watch with negative implications
Rationale
The rating of SHPPBPL has been downgraded to [ICRA]D following the
recent delays in debt servicing by the company. Also, the rating
has been removed from rating watch with negative implications. On
April 7, 2025, ICRA noticed the irregularities in debt servicing on
the rated term loan of Sandhya Hydro Power Projects Balargha
Private Limited (SHPPBPL). The company's holding entity, Skyzen
Infrabuild Private Limited, has arranged funds of INR67.3 crore to
prepay the outstanding term loan due to unviability of SHPPBPL's
operations as the plant was closed due to water logging in the
powerhouse. ICRA would like to
highlight that even while adequate funds were available for a
timely debt servicing, SHPPBPL chose not to service the debt
obligations during its ongoing negotiation with the lender for the
waiver of prepayment charges. ICRA, however, notes that SHPPBPL had
received the approval from the lender for the waiver of prepayment
charges on April 7, 2025. The company has also informed ICRA that
it has repaid the outstanding debt of INR66.84 crore on April 8,
2025 and the no dues certificate is awaited from the lender.
Key rating drivers and their description
Credit strengths
* Part of Continuum Energy Pte Ltd, Singapore: SHPPBPL is a
subsidiary of Continuum Energy Pte Limited (Singapore) and, thus,
derives managerial and technical strength from being a part of the
Continuum Group. Continuum Energy, along with its subsidiary-Skyzen
Infrabuild Private Limited, holds a 74% equity stake in the
company.
Credit challenges
* Delays in debt servicing amid ongoing negotiations for the waiver
of prepayment charges: On April 7, 2025, ICRA noticed
irregularities in debt servicing on the rated term loan of SHPPBPL.
The company's holding entity, Skyzen Infrabuild Private Limited,
had arranged funds of INR67.3 crore to prepay the outstanding term
loan due to unviability of SHPPBPL's operations as the plant was
closed due to water logging in the powerhouse. ICRA would like to
highlight that even while adequate funds were available for a
timely debt servicing, SHPPBPL chose not to service the debt
obligations during its ongoing negotiation
with the lender for the waiver of prepayment charges. ICRA,
however, notes that SHPPBPL had received the approval from the
lender for the waiver of prepayment charges on April 7, 2025. The
company has also informed ICRA that it has repaid the outstanding
debt of INR66.84 crore on April 8, 2025 and the no dues certificate
is awaited from the lender.
* No visibility on future earnings due to termination of PPAs: The
company has terminated its PPAs with the offtakers under the force
majeure clause, given the uncertainty over the resumption of its
plant. The operations, therefore, remain unviable and there is no
visibility on future earnings.
Liquidity position: Poor
The liquidity position remains poor on account of the limited
liquidity buffer as the plant remains shut and the company has
exhausted its debt service reserve account (DSRA). The company had
cash/bank balance of INR1.44 crore as on March 17, 2025.
Rating sensitivities
Positive factors – The rating can be upgraded if the company is
able to regularise the account and demonstrates a timely debt
servicing track record for at least three months.
Negative factors – Not Applicable
SHPPBPL, incorporated in 2010, operates a run-of-the-river 9-MW
+10% continuous overload small hydropower project on the river
Parbati (a tributary of Beas) in Kullu, Himachal Pradesh. The
current promoters acquired the project from a local stakeholder in
Himachal Pradesh in 2010 at an initial capacity of 2 MW. The
capacity was increased to 5 MW after approval from the Himachal
Pradesh Energy Development Agency (HIMURJA). Further, after
obtaining the water flow details of the location, the capacity was
increased to 9 MW +10% continuous overflow.
The company signed an implementation agreement (IA) with the
Government of Himachal Pradesh (GoHP) in December 2010 for carrying
out the project on build, own, operate & transfer (BOOT) basis for
a period of 40 years. The plant has remained shut from July 30,
2024, post the water logging at the powerhouse of the unit. The
plant had earlier resumed operations at the end of April 2024 after
a shutdown in July 2023 on account of floods in the region due to
incessant rains.
SHAGUN EXPLOCHEM: Ind-Ra Withdraws BB- Bank Loan Rating
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn the ratings of
Shagun Explochem Private Limited's (SEPL) bank facilities as
follows:
-- The 'IND BB-/Stable/IND A4+' rating on the INR4 mil. Proposed
fund-based working capital limit is withdrawn;
-- The 'IND BB-/Stable/IND A4+' rating on the INR150 mil. Fund-
based working capital limit is withdrawn; and
-- The 'IND BB-/Stable' rating on the INR186 mil. Term loan due
on April 20, 2031 is withdrawn.
Detailed Rationale of the Rating Action
Ind-Ra is no longer required to maintain the ratings for the
fund-based working capital limits and term loan, as the agency has
received no dues certificates from the lenders and withdrawal
request from the issuer. Ind-Ra has withdrawn the rating for the
proposed fund-based working capital limits as the company did not
proceed with the instrument as envisaged. This is consistent with
Ind-Ra's Policy on Withdrawal of Ratings. Ind-Ra will no longer
provide analytical and rating coverage for the company.
About the Company
Incorporated in 2019 and headquartered in Bhilwara Rajasthan, SEPL
manufactures slurry and emulsion used in the explosives market.
Tanmay Gattani, Deelip Baheti, Prakash Gattani and Dinesh Kumar
Laddha are the promoters.
SIMBHAOLI SUGARS: Defaults on Loan Amid Insolvency Proceedings
--------------------------------------------------------------
TipRanks reports that Simbhaoli Sugars Limited has disclosed
defaults on loan payments for the quarter and year ending March 31,
2025, with a total outstanding amount of INR1,008 crore.
According to TipRanks, the company is undergoing a Corporate
Insolvency Resolution Process, with its board's powers suspended
and vested in an Interim Resolution Professional. An appeal against
the insolvency order is pending, with the National Company Law
Appellate Tribunal allowing the IRP to manage operations in the
interim.
Simbhaoli Sugars sells sugar under the brand 'Trust' and has
factories in Uttar Pradesh.
As reported in the Troubled Company Reporter-Asia Pacific on July
15, 2024, the National Company Law Tribunal (NCLT) has ordered
initiation of insolvency resolution proceedings against Simbhaoli
Sugars Ltd. Business Standard related that the plea was filed in
September 2018 by erstwhile Oriental Bank of Commerce which has
been merged with state-owned Punjab National Bank (PNB) now.
SMS CONSTRUCTIONS: ICRA Keeps B Debt Ratings in Not Cooperating
---------------------------------------------------------------
ICRA has kept the Long-Term rating of Sms Constructions (SMS) in
the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 3.00 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 4.00 [ICRA]B (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with SMS, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
SMS Constructions (SMS) is a Bangalore based partnership firm
incorporated in February 2013 that is engaged in the business of
civil and electrical contracts for KPTCL. The promoter is
registered as Class I electrical contractor by the PWD, Karnataka.
SC's areas of operations include erection and commissioning of HT &
LT substations, transmission lines, internal & external
electrification and underground cabling works in South Karnataka
districts. The firm has executed one project till date which was
completed in January 2016.The promoter, Mr. Umesh Gowda who has
been in this business for nearly past two decades through a
proprietorship firm, M/s Lekhashree Electricals whose operations
were wound up after the formation of SMS Constructions.
SPECTRA AUTO: ICRA Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has kept the Long-Term ratings for the Bank facilities of
Spectra Auto in the 'Issuer Not Cooperating' category. The rating
is denoted as "[ICRA]B+(Stable); ISSUER NOT COOPERATING ".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 3.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 7.00 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Spectra, ICRA has been trying to seek information from the
entity so as to monitor its performance. Further, ICRA has been
sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Spectra Auto (Spectra) is an authorized dealer for Hero MotoCorp
Limited (HMCL; rated [ICRA]AAA(Stable)/A1+). The company started
dealership business 2003. Currently, the company has two show rooms
in Nerul and Chembur and two workshops in Turbhe and Chembur.
SRINIVASA HAIR: ICRA Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has kept the Long-Term ratings of Srinivasa Hair Industries
Private Limited (Formerly known as Srinivasa Hair Industries) (SHI)
in the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B+ (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 25.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 8.31 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 0.19 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long Term- 15.00 [ICRA]B+ (Stable) ISSUER NOT
Non Fund Based- COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with SHI, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Established in 1983 by Mr. K K Gupta, M/s Srinivasa Hair Industries
(SHI) is primarily engaged in the export (trading) of human hair,
both remy (tonsured hair) & non-remy variety (fallen hair). Mr. K K
Gupta and his brother Mr. K S Gupta constitute the partners of the
firm. The entity procures fallen human hair and tonsured hair. The
partnership firm has procurement centres in Karnataka and West
Bengal for collection of fallen hair, while temple hair is procured
from Tamil Nadu and Andhra Pradesh. More than 80 per cent of
purchases constitute fallen hair owing to its availability
throughout India against temple hair which is procured
predominantly from South India. After processing, these are
exported to manufacturers of hair extensions, wigs, toupees, hair
pieces and hair weavings abroad. The firm exports to more than 10
countries with major exports to China (including Hong Kong),
Brazil, Italy, Spain & USA.
SUPREME SOLAR: ICRA Keeps B+ Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has kept the Long-Term rating of Supreme Solar Systems (SSS)
in the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 6.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 12.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with SSS, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Supreme Solar Systems (SSS) was incorporated in 2004 in India and
is primarily into the manufacture of solar water heaters. Other
products include Chimney, Hobs, Solar Lighting System, Electrical
Storage Geyser, RO Purifier and Wooden Furniture. The entity
manufacturing facility, which is ISO9001:14001 certified, is
located in Yelahanka district of Bangalore. The entity has about
150employees operating in 2 shifts. Apart from Bangalore, the
entity has branch offices in Delhi, Pune,Kolkata and Kollapura. The
entity also has close to 300 service stations spread across India.
VEDAMATHA ENTERPRISES: ICRA Keeps D Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has kept the Long-Term rating of Vedamatha Enterprises Pvt Ltd
(VPPL) in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 12.50 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with VPPL, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Vedamatha Enterprises Pvt Ltd (VPPL) was incorporated in 2002, and
is currently involved in the decorative laminations business as a
distributor of Greenlam Industries Ltd for Bangalore, under a
partnership firm named as "Vishaka Enterprises". The company also
trades in silk sarees through its retail show room 'Devanad Silks'
in Chichpet, Bangalore through a partnership firm named "Devanand
Marketing". Since inception till June 2015, the company has been a
distributor of HUL's FMCG products for the Bangalore City area.
VENKATESWARA RICE: ICRA Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
ICRA has kept the Long-Term ratings of Sri Venkateswara Rice
Industries Private Limited (SVRI) in the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 0.30 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term- 70.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long Term- 4.70 [ICRA]D; ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain under
'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with SVRI, ICRA has been trying to seek information from the entity
so as to monitor its performance Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Founded in 2005, Sri Venkateswara Rice Industries (SVRI) is engaged
in the milling of paddy and produces raw and boiled rice. In
September 2015, company has been reconstituted as private limited
company and is named Sri Venkateswara Rice Industries Private
Limited (SVRIPL). The milling unit is located at Kodada village of
Nalgonda district, Andhra Pradesh with milling capacity of 24 tons
per hour (TPH). The company has four 4 plants with 250 drying
capacity and 1MW captive power plant.
VENU INDUSTRIES: ICRA Keeps B Debt Rating in Not Cooperating
------------------------------------------------------------
ICRA has kept the Long-Term rating of Venu Industries in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 15.00 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Venu Industries, ICRA has been trying to seek information from
the entity so as to monitor its performance Further, ICRA has been
sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Venu Industries is engaged in the milling of paddy and produces raw
and boiled rice. The rice mill is situated in Nizamabad district of
Telangana. It has an installed production capacity of 67,200 metric
tonnes per annum. The firm is managed by Mr. Srinivas, Mr. Sai
Rahul, Mr Venugopal and Mr. Balaji who belong to the same family.
The firm sells rice under the brand name "Healthy Rice".
=====================
N E W Z E A L A N D
=====================
AUCKLAND CONSTRUCTION: Court to Hear Wind-Up Petition on May 1
--------------------------------------------------------------
A petition to wind up the operations of Auckland Construction and
Electrical Solutions Limited will be heard before the High Court at
Auckland on May 1, 2025, at 10:45 a.m.
Webster Drilling & Exploration Limited filed the petition against
the company on Feb. 5, 2025.
The Petitioner's solicitor is:
Jeffrey Gray Ussher
Level 19
191 Queen Street
Auckland
CAMBRY GROUP: Creditors' Proofs of Debt Due on May 18
-----------------------------------------------------
Creditors of Cambry Group Limited, Cambry BTL Limited and Cambry
BCL Limited are required to file their proofs of debt by May 18,
2025, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on April 8, 2025.
The company's liquidators are:
Wendy Somerville
Malcolm Hollis
C/o PwC
PwC Christchurch
PO Box 13244
Christchurch 8141
HAMILTON MOVERS: Creditors' Proofs of Debt Due on May 12
--------------------------------------------------------
Creditors of Hamilton Movers Limited (trading as Hamilton Movers &
Storage) are required to file their proofs of debt by May 12, 2025,
to be included in the company's dividend distribution.
The company commenced wind-up proceedings on April 7, 2025.
The company's liquidators are:
Kristal Pihama
Leon Francis Bowker
KPMG
18 Viaduct Harbour Avenue
PO Box 1584
Shortland Street
Auckland 1140
HANSELLS MASTERTON: Masterton Rocked by Possible Closure of Plant
-----------------------------------------------------------------
Radio New Zealand report that Masterton Mayor Gary Caffell is
"gutted" to hear about 100 jobs could be on the line, as an iconic
New Zealand food products business goes into liquidation.
Hansells Masterton has been tipped into receivership by a company
owned by the Hart family, one of the country's wealthiest families,
RNZ says.
RNZ relates that receivers BDO Auckland are urgently trying to find
a new buyer for the business, which is known for products that
include drink powders and syrups, King soup mix, Empire curry
powder and black pepper.
According to RNZ, Mr. Caffell said he felt for the staff and their
families who faced uncertainty, and hoped a solution that kept jobs
could be found.
Hansells Masterton had been part of the town's fabric for 75 years
and he "was gutted to hear the news".
"Businesses like Hansell's are the backbone of our local economy
and community," RNZ quotes Mr. Caffell as saying. "The company has
provided jobs and stability for generations of Masterton families,
producing iconic products that have been in Kiwi pantries for
decades."
Mr. Caffell hoped the council would be kept up-to-date with
developments, and pledged support for the business and staff
employed there.
"We've got [council] staff here who are very well versed in
economic development," he said. "I know we'd only be too happy to
do what we can to help out, because we know just how important
Hansells is to our community."
RNZ adds that Hansells Masterton director Alan Stewart said he had
supported the business to the best of his ability over the past 11
years to keep staff employed and the 90 year-old-brand alive, "but
this has now been taken out of my hands".
"I feel sorry for the many long-serving staff, some who have worked
in the company for over 40 years, and there are many who will have
difficulty getting continued employment in Masterton."
Mr. Stewart said the receivers had arrived in Masterton and staff
may learn more about their fate today, April 14.
The trading environment had been difficult in recent years, with
challenges exacerbated by the Covid pandemic, he said.
About Hansells Masterton
Hansells Masterton is a New Zealand-based food contract packer. The
company specialises in powder and liquid blending and packing.
Walter & Wild, a secured debt holder, appointed Andrew McKay and
Rees Logan of BDO Auckland as receivers to Hansells Masterton on
April 10, 2025.
NIGHTINGALE FINANCE: Creditors' Proofs of Debt Due on May 20
------------------------------------------------------------
Creditors of Nightingale Finance Limited and Horne Bros Limited are
required to file their proofs of debt by May 20, 2025, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on April 7, 2025.
The company's liquidator is:
Heath Gair
Palliser Insolvency
PO Box 57124
Mana, Porirua 5247
NORTHERN CONTRACTORS: Creditors' Proofs of Debt Due on May 12
-------------------------------------------------------------
Creditors of Northern Contractors Limited are required to file
their proofs of debt by May 12, 2025, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on April 7, 2025.
The company's liquidators are:
Kristal Pihama
Leon Francis Bowker
KPMG
18 Viaduct Harbour Avenue
PO Box 1584
Shortland Street
Auckland 1140
=================
S I N G A P O R E
=================
KS ENERGY: Creditors' Proofs of Debt Due on May 7
-------------------------------------------------
Creditors of KS Energy Engineering Services Pte. Ltd. are required
to file their proofs of debt by May 7, 2025, to be included in the
company's dividend distribution.
The company's liquidator is:
Mr. Lim Loo Khoon
c/o Deloitte & Touche LLP
6 Shenton Way, #33-00
OUE Downtown 2
Singapore 068809
NEW GLOBAL: Commences Wind-Up Proceedings
-----------------------------------------
Members of New Global Alliance Pte. Ltd. on March 24, 2025, passed
a resolution to voluntarily wind up the company's operations.
The company's liquidator is:
Lai Seng Kwoon
7500A Beach Road
#05-303/304 The Plaza
Singapore 199591
WHITEROCK MEDICAL: Creditors' Proofs of Debt Due on May 7
---------------------------------------------------------
Creditors of Whiterock Medical Company Pte. Ltd. are required to
file their proofs of debt by May 7, 2025, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on April 1, 2025.
The company's liquidators are:
Victor Goh
Marie Lee
c/o Baker Tilly
600 North Bridge Road
#05-01 Parkview Square
Singapore 188778
YIDA PRECISION: Court Enters Wind-Up Order
------------------------------------------
The High Court of Singapore entered an order on March 28, 2025, to
wind up the operations of Yida Precision Engineering 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
=====================
S O U T H K O R E A
=====================
MG NON-LIFE: Insolvency to Hamper JC Partners' KDB Life Deal
------------------------------------------------------------
The Korea Times reports that as MG Non-Life Insurance was declared
insolvent last week, its ripple effects could now adversely
influence the pre-arranged sale of KDB Life to JC Partners, a major
shareholder of MG Non-Life.
During its regular meeting on April 9, the Financial Services
Commission (FSC) decided to designate MG Non-Life as an insolvent
financial institution, given that its debt exceeded its capital by
KRW113.9 billion ($92.9 million), The Korea Times relates. This
severe level of the debt-to-capital ratio meets the criteria for
designation as an insolvent financial institution, as stated in the
Act on the Structural Improvement of the Financial Industry.
It is the first time in eight years that the financial authority
has labeled a financial company as insolvent, the report notes. The
last such case was the 2014 insolvency of Golden Bridge Savings
Bank.
With this designation, the insurance company now must find a new
owner. Green Non-Life Insurance - the previous name of the company
- was also declared insolvent by the FSC and was acquired by MG
Community Credit Cooperative in 2013.
Woori Financial Group is said to have shown interest in purchasing
the company, according to sources in the investment banking
industry, April 10, The Korea Times relays.
So far, the financial regulator has been asking the firm to execute
various measures to normalize its management. Yet, considering the
firm's failure to follow through with the measures, the financial
regulator viewed the insolvency designation as unavoidable.
The Korea Times relates that while the financial regulator and the
company are seeking a new owner via the selling process, MG
Non-Life said its customers can continue their normal operations
with the company regarding their insurance plans, as a move to
minimize customer anxiety.
With MG Non-Life's insolvency status, JC Partners' acquisition plan
for KDB Life is likely to be gravely hurt, market watchers said,
The Korea Times reports. The local private equity firm signed a
deal with Korea Development Bank (KDB) in late 2020 to purchase the
state-owned lender's life insurance subsidiary as the only
preferred bidder for the deal.
However, the private equity firm hasn't still passed the FSC's
assessment process that aims to evaluate whether it is qualified to
take over KDB Life, the report relates. The failure on the part of
JC Partners to follow through on its announced plans to secure the
necessary capital to take over KDB Life was one of the main reasons
behind the prolonged evaluation regarding its qualification for the
takeover.
Given that being the major shareholder of an insolvent financial
company is one of the major disqualifying grounds for such
assessments, JC Partners might not be viewed as qualified to take
over the insurance firm, according to The Korea Times.
JC Partners, meanwhile, is strongly defiant of the FSC's
designation, vowing to seek an injunction on the FSC decision, The
Korea Times says. Market watchers view that the completion of the
deal is now impossible, although KDB officials said it's still too
early to reach any conclusions.
About MG Non-Life Insurance
MG Non-Life Insurance Co. Ltd. provides insurance services. The
Company offers automobile, property damage, casualty, theft, fire,
malpractice, marine, workers compensation, homeowners insurance,
and other insurance services. MG Non-Life Insurance serves clients
in Korea.
[] SOUTH KOREA: Number of Marginal Companies Up in 2024
-------------------------------------------------------
Maeil Business News Korea reports that among domestic companies,
the number of marginal companies that have been pushed to the stage
just before restructuring has increased compared to the global
financial crisis and the COVID-19 pandemic. With the global tariff
war intensifying this year, concerns are growing that corporate
bankruptcy could occur due to further economic deterioration in the
future.
According to the report, KB Kookmin, Shinhan, Hana, and Woori's
four major banks and the National Federation of Banks said on April
7 that a total of 2,339 companies were classified as "companies
that are likely to become insolvent" at the end of last year. The
number is the highest ever, surging 23.9% from 1,887 in the
previous year. It is also more than 1,844 in 2009 when the global
financial crisis was in full swing and 2,067 in 2022 immediately
after COVID-19.
Maeil Business says the creditor bank conducts an annual corporate
credit risk assessment for companies whose financial conditions
have deteriorated, such as companies that cannot pay off financial
costs due to operating profits for three consecutive years and
companies that have recently eroded capital. These companies are
classified into four levels, from A to D, according to their risk.
Just by receiving a corporate credit risk assessment from the bank,
it can be said that it is already experiencing management
difficulties.
Among them, 'companies with a high probability of becoming
insolvent companies' are rated B. Compared to companies with signs
of insolvency (C to D grades), which are directly subject to
restructuring, their financial position is somewhat better, but
banks also evaluate B grades as quite precarious, Maeil Business
states. Companies such as Shin Dong-A Construction and Team Fresh
whose business difficulties have recently been exposed to the
surface were classified as B grades and then suddenly fell to C to
D grades.
An official from the risk management division of a commercial bank
said, "The number of companies that are rated B has increased
rapidly in recent years," adding, "There are many cases where
B-grade companies close their businesses even before lowering them
from creditor banks to C-D grades," Maeil Business relays.
Financial authorities and major commercial banks will judge the
current signs of corporate insolvency at a serious level and take
close management. An official from the financial authorities said,
"The number of B-grade companies is increasing a lot due to the
recession," adding, "We are closely monitoring them."
=============
V I E T N A M
=============
HDBANK: Moody's Affirms 'B1' Deposit & Issuer Ratings
-----------------------------------------------------
Moody's Ratings has affirmed the B1 local (LC) and foreign (FC)
currency long-term (LT) bank deposit and issuer ratings of Ho Chi
Minh City Development JSC Bank (HDBank), as well as the bank's b2
Baseline Credit Assessment (BCA) and adjusted BCA.
Moody's have also affirmed HDBank's B1 LT FC and LC Counterparty
Risk Ratings (CRR) and B1(cr) LT Counterparty Risk Assessment
(CRA), NP short-term (ST) FC and LC CRR, ST FC and LC bank deposit
ratings, ST FC and LC issuer ratings and NP(cr) ST CRA.
Moody's have changed the rating outlook on the LT bank deposit
ratings and issuer ratings for HDBank to stable from negative.
RATINGS RATIONALE
The affirmation of HDBank's BCA and ratings with a stable outlook
is driven by Moody's expectations that the bank's stable
profitability will provide cushion against asset risks from its
aggressive loan growth and the import tariffs imposed by the US
(Aaa negative). The ratings also consider the bank's high reliance
on market funds and modest liquidity buffers. Additionally, the
rating affirmation reflects Moody's expectations that the
acquisition of a weak bank is credit neutral and will not affect
the bank's credit profile.
The bank's B1 deposit ratings are one notch above its b2 BCA
reflecting Moody's assumptions of a moderate probability of support
from the Government of Vietnam (Ba2 stable) in times of need.
In January 2025, HDBank acquired Dong A Bank to support the central
bank's efforts to rehabilitate a weak bank, often referred to as a
"zero dong bank." Dong A Bank has now been renamed Vikki Bank by
HDBank. Despite the acquisition, Vikki Bank will remain an
independent legal entity, and HDBank will not inject capital into
it or consolidate its financials. HDBank will only provide
management and technical support to help Vikki Bank gradually
improve its financial position. Given this arrangement, Moody's
expects the credit impact of this acquisition to be neutral for
HDBank over the next 12 to 18 months.
As of December 2024, the bank's nonperforming loan (NPL) ratio
remained broadly stable at 1.9% from 1.8% a year earlier, partly
because of strong loan growth. Loans grew by 29% in 2024,
significantly higher than the average of 18% for rated peers.
Moody's expects the bank's asset quality to be under pressure as
strong loan growth will pose unseasoned risk. In addition, the
large import tariffs imposed by the US will hurt the country's
near-term growth prospects, leading to financial stress for
export-oriented industries and potentially hurting the banking
sector's asset quality.
HDBank's strong profitability, with return on tangible assets
(ROTA) averaging 1.8% from 2021 to 2024, supports its credit
profile. ROTA increased to 1.9% for the year ended December 31,
2024, higher than the average of 1.5% for rated peers, helped by an
improvement in net interest margin (NIM) from the bank's increased
focus on small and medium enterprises and retail segments. Moody's
expects higher credit losses to weigh down further NIM improvement,
keeping profitability stable over the next 12-18 months.
As of December 31, 2024, the bank's tangible common equity to
risk-weighted assets (TCE/RWA) ratio declined to 7.9% from 8.6% a
year earlier because of accelerated asset growth and cash dividend
payout. The bank's capital consumption will outpace its internal
capital generation over the next 12-18 months as its loan growth
will likely exceed the banking system average. Consequently, its
capitalization will remain below the average of its similarly rated
peers.
The bank's high reliance on market funds and modest liquidity also
pose risks. As of December 31, 2024, market funds as a percentage
of tangible banking assets were elevated at 26%, while the share of
high-quality liquid assets was a modest 9% of the bank's tangible
banking assets, providing a limited buffer in times of need.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could upgrade HDBank's deposit and issuer ratings if its
standalone credit strength or BCA improves. Specifically, Moody's
could upgrade HDBank's b2 BCA if the bank reduces its loan growth
appetite to align with the system loan growth, improves its TCE/RWA
ratio to higher than 10%, and reduces its reliance on market funds
while maintaining high-quality liquid assets as a percentage of
tangible banking assets above 10% on a sustained basis.
Moody's could downgrade HDBank's b2 BCA and ratings if its NPL
ratio increases above 3%, leading to higher credit costs and a
decrease in return on tangible assets below 0.8%, or if TCE/RWA
declines below 6.3%. A weakening in HDBank's funding and liquidity
will also strain the BCA and ratings.
Moody's would also downgrade HDBank's deposit and issuer ratings if
Moody's assess that government support for the bank has weakened.
The principal methodology used in these ratings was Banks published
in November 2024.
Ho Chi Minh City Development JSC Bank, headquartered in Ho Chi Minh
City, reported total assets of VND697 trillion as of December 31,
2024.
*********
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 2025. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
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