/raid1/www/Hosts/bankrupt/TCRAP_Public/220302.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, March 2, 2022, Vol. 25, No. 38
Headlines
A U S T R A L I A
ARG GINGER: First Creditors' Meeting Set for March 9
EMECO HOLDINGS: Fitch Affirms 'B+' LT IDR, Outlook Stable
FRESH&CO FOODSTORE: Samuel Richwol Appointed as Liquidator
INVESTA CONSULTING: Court Enters Wind-Up Order
SPARRK LOGISTICS: First Creditors' Meeting Set for March 3
TABELLA PTY: Court Enters Wind-Up Order
C H I N A
E-HOUSE (CHINA): S&P Withdraws 'CCC' LT Issuer Credit Rating
HONGKONG JUNFA: Fitch Lowers LT FC IDR to 'B-', Outlook Negative
KUNMING MUNICIPAL: Fitch Affirms Then Withdraws 'BB' IDRs
REDCO PROPERTIES: S&P Lowers ICR to 'B-', On CreditWatch Negative
H O N G K O N G
GENTING HONG KONG: Dream Cruises' World Dream to Stop Sailing
I N D I A
BALA JI: CRISIL Keeps B+ Debt Rating in Not Cooperating Category
BHAVANI COTEX: ICRA Keeps B+ Debt Ratings in Not Cooperating
DODHIA TECHNO: CRISIL Keeps D Debt Ratings in Not Cooperating
FUTURE RETAIL: Suspends Store Operations on Reliance Takeover Plan
GURUKRUPA METALS: ICRA Keeps B- Debt Rating in Not Cooperating
INDCHEM INC: CRISIL Keeps B+ Debt Rating in Not Cooperating
KAY BEE: CRISIL Keeps D Debt Rating in Not Cooperating Category
KESHAV HOLIDAY: ICRA Moves B+ Debt Rating to Not Cooperating
KHIWAJ TRADERS: CRISIL Keeps B Debt Ratings in Not Cooperating
KISAN GINNING: CRISIL Keeps B+ Debt Ratings in Not Cooperating
L'ECOLE CHEMPAKA: CRISIL Keeps B+ Debt Ratings in Not Cooperating
LAKSHMI POULTRY: ICRA Keeps B+ Debt Ratings in Not Cooperating
LUCKY EXPORTS: ICRA Keeps D Debt Ratings in Not Cooperating
MALANKARA PLANTATIONS: ICRA Keeps B+ Rating in Not Cooperating
MOHAN RAO: ICRA Keeps B Debt Ratings in Not Cooperating Category
MPL MOTORS: CRISIL Keeps C Debt Ratings in Not Cooperating
NSN REDDY: ICRA Keeps B+ Debt Rating in Not Cooperating Category
PR.M. MODERN: CRISIL Keeps B+ Debt Ratings in Not Cooperating
PRAJAY PROPERTIES: CRISIL Keeps D Debt Ratings in Not Cooperating
PRAMUKH COPPER: ICRA Keeps D Debt Ratings in Not Cooperating
R. K. ENGINEERING: CRISIL Keeps B Debt Ratings in Not Cooperating
RESHMA FABRICS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
RKS STEEL: CRISIL Lowers Rating on INR17.4cr Long Term Loan to B
SAFFRON RESOURCES: CRISIL Keeps B+ Debt Rating in Not Cooperating
SAMDARIYA ABHUSHAN: ICRA Keeps B+ Debt Ratings in Not Cooperating
SANDEEP SINGH: CRISIL Keeps B Debt Rating in Not Cooperating
SHRUTI SALES: CRISIL Keeps B+ Debt Ratings in Not Cooperating
SHUKAN HOSPITAL: CRISIL Keeps B+ Debt Ratings in Not Cooperating
J A P A N
EAST JAPAN: Egan-Jones Keeps BB Senior Unsecured Ratings
KEISEI ELECTRIC: Egan-Jones Keeps B+ Senior Unsecured Ratings
MITSUI OSK: Egan-Jones Hikes Senior Unsecured Ratings to BB
SUMITOMO CHEMICAL: Egan-Jones Keeps BB+ Senior Unsecured Ratings
TOKYO ELECTRIC: Egan-Jones Keeps BB+ Senior Unsecured Ratings
TOSHIBA CORP: CEO Steps Down Over Chaos on Revised Revamp Plan
N E W Z E A L A N D
A.G. WARE: Creditors Unlikely to Get Money Back, Liquidators Say
FLOWER WIZARDS: Court to Hear Wind-Up Petition on March 10
HSK TRADING: Creditors' Proofs of Debt Due April 24
LIQUIDSTRIP LIMITED: Creditors' Proofs of Debt Due March 30
MANUKAU FAMILY: Court to Hear Wind-Up Petition on March 13
Q CARD TRUST: Fitch Affirms B Rating on 3 Note Classes
RAINBOW SPRINGS: Nature Park to Close Permanently
THREE SHORTLAND: Creditors' Proofs of Debt Due April 8
S I N G A P O R E
CAMP DEMPSEY: Creditors' Proofs of Debt Due March 25
EZION HOLDINGS: Court Enters Wind-Up Order
GREATEARTH CORPORATION: Two of Five BTO Projects Completed
INRI INTERNATIONAL: Court to Hear Wind-Up Petition on March 18
KI BAR: Creditors' Proofs of Debt Due March 25
MARMALADE PTE: Creditors' Proofs of Debt Due on March 25
RHODIUM TRADING: Court to Hear Wind-Up Petition on March 11
V I E T N A M
VIETNAM – RUSSIA JOINT: Moody's Withdraws 'B2' Deposit Ratings
- - - - -
=================
A U S T R A L I A
=================
ARG GINGER: First Creditors' Meeting Set for March 9
----------------------------------------------------
A first meeting of the creditors in the proceedings of ARG Ginger &
Smart Pty Ltd will be held on March 9, 2022, at 11:00 a.m. virtual
meeting technology.
Katherine Elizabeth Barnet -- kate.barnet@olveraadvisors.com -- and
Damien Mark Hodgkinson -- damien.hodgkinson@olveraadvisors.com --
of Olvera Advisors were appointed as administrators of ARG Ginger
on Feb. 25, 2022.
EMECO HOLDINGS: Fitch Affirms 'B+' LT IDR, Outlook Stable
---------------------------------------------------------
Fitch Ratings has affirmed Australia-based Emeco Holdings Limited's
Long-Term Issuer Default Rating at 'B+'. The Outlook is Stable.
The affirmation follows the company's stable performance in the
first half of the financial year ended December 2021 (1HFY21).
Revenue improved by around 25% and EBITDA increased by 3%. Its
Fitch-adjusted EBITDA margin, however, narrowed to around 30% due
to increasing revenue contribution from long-term service contracts
and start-up costs associated with new projects. Fitch expects the
company's leverage metric, defined as net debt to EBITDA, to remain
below 1x over the next four years.
Fitch expects the company to generate positive cash flow before
dividends and return 25%-40% of its operating net profit after tax
to shareholders as part of its capital management policy.
KEY RATING DRIVERS
Strong Financial Profile: Emeco refinanced its US dollar notes in
July 2021 with AUD250 million 6.25% notes, which allowed the
company to extend its debt maturity to July 2026 and reduced its
finance cost by around AUD20 million from FY21. Fitch expects Emeco
to keep leverage, measured by net debt to EBITDA, below 1x even
after its stated capital management policy and maintain a
conservative balance sheet to manage its business through the
cycle.
In addition, Emeco's continuous effort to diversify its commodity
mix by cutting its exposure to thermal coal to 13% in 1HFY21 from
40% in 1HFY19 underscores its commitment towards a sustainable
operation, ensuring its access to capital markets with a reasonable
funding cost.
Improving Business Profile: Emeco is improving the profile through
diversifying service offerings, increasing contract tenures and
moving into other commodities. Offering long-term mining-service
contracts and fully maintained equipment-hire services raise
Emeco's contract tenure and switching cost with customers,
improving earnings visibility. These longer-term contracts have
narrower EBITDA margins than its pure fleet-rental business, but
have similar margins with other Australian mining-service companies
for projects in the production phase.
Emeco's workshops under Force Equipment allow it to efficiently
manage its fleet with in-house rebuild capability, improving
revenue diversity. However, Emeco's rental business - 55% of
revenue and 85% of EBITDA in 1HFY22 - makes it more vulnerable
during downturns than peers that provide integrated or full service
offerings, which continues to constrain its business profile. This
was highlighted by the profit impact from the lower utilisation of
its rental fleet on the east coast of Australia in FY21 as coal
producers reduced mining activity amid lower prices.
Supportive Industry Conditions: Fitch expects Australian mining
production volume and capex to rise over the next few years. Emeco
is well-positioned to capitalise on this, especially in hard-rock
commodities. Fitch believes the 44% EBITDA margin for its rental
business in Western Australia can improve to close to the 63%
EBITDA margin of its rental business on the east coast. Fitch
expects mining-equipment supply to remain adequate and rational
compared with 2012's peak. Therefore, Fitch does not expect
pressure on its fleet utilisation and rental rates over the next
few years.
DERIVATION SUMMARY
Emeco's rating can be compared with that of PT Bukit Makmur Mandiri
Utama (BB-/Stable), which has better revenue visibility and a
stable operating profile that stem from the Indonesia-based
company's long-term contracts with miners and its diversified
service offerings at various production stages. Bukit Makmur also
benefits from the long transition time of around three years to
switch mining contractors, which results in high switching costs
for coal miners. Bukit Makmur therefore had a more stable operating
profile during the previous downturn and better earnings visibility
than Emeco.
However, Emeco has a better diversified customer base and commodity
exposure as well as a stronger financial profile than Bukit Makmur,
which somewhat offsets its relatively weak business profile. These
factors underscore the one-notch rating differential between the
two entities.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Operating utilisation rate to remain around 60% due to tight
rental-equipment market conditions and strong activity in the
mining sector;
-- Net capex at around 20% of revenue from FY22-FY25;
-- 25%-40% of operating net profit after tax to be returned to
shareholders, in line with management guidance.
RATING SENSITIVITIES
Factor that could, individually or collectively, lead to positive
rating action/upgrade:
-- A further improvement in contract terms, scale, or business
model that increases switching costs for customers and
visibility of revenue during cyclical downturns while
maintaining net debt to EBITDA below 1x.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Deterioration in operating performance, including a decline in
the operating utilisation rate and loss of major contracts.
-- Net debt/EBITDA exceeding 2x for a sustained period.
-- Fitch has changed the leverage ratio in the sensitivity
guidance to net Debt/EBITDA from funds from operations net
leverage, in line with a general change in Fitch's global
policy for corporate issuers.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: Emeco's next significant debt maturity is in
July 2026, which is the AUD250 million 6.25% senior secured notes.
The company had a committed undrawn revolving facility of AUD97
million due September 2023 and cash in hand of AUD61 million at
end-2021. Fitch also expects Emeco to generate positive cash flow
before dividends over the next four years.
ISSUER PROFILE
Emeco, founded in 1972, is one of the leading earthmoving equipment
rental companies listed on the Australian Securities Exchange. The
company has operations in all key mining regions of Australia and
its customers include mining companies and contractors across coal,
gold, copper, bauxite and iron ore.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This 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.
FRESH&CO FOODSTORE: Samuel Richwol Appointed as Liquidator
----------------------------------------------------------
Samuel Richwol at O'Keeffe Walton Richwol on March 30, 2021, was
appointed as liquidator of Fresh&co Foodstore Pty Ltd.
The liquidator may be reached at:
Samuel Richwol
O'Keeffe Walton Richwol
5A Oulton Street
Caulfield North, VIC 3161
Email: richwol@richwol.com.au
INVESTA CONSULTING: Court Enters Wind-Up Order
----------------------------------------------
The Supreme of New South Wales entered an order on March 1, 2022,
to wind up the operations of Investa Consulting Pty Ltd, formerly
trading as ABC Building Pty Ltd.
The company's liquidator is:
Erwin Rommel Alfonso
c/o Smith Hancock Chartered Accountants
Level 4, 88 Phillip Street
Parramatta, NSW 2150
Email: rommela@smithhancock.com.au
SPARRK LOGISTICS: First Creditors' Meeting Set for March 3
----------------------------------------------------------
A first meeting of the creditors in the proceedings of Sparrk
Logistics Pty Ltd will be held on March 3, 2022, at 11:00 a.m. via
Zoom Webinar.
Glenn Anthony Crisp and Andrew Mattinson of Jirsch Sutherland were
appointed as administrators of Sparrk Logistics on Feb. 21, 2022.
TABELLA PTY: Court Enters Wind-Up Order
---------------------------------------
The Supreme of New South Wales entered an order on March 1, 2022,
to wind up the operations of Tabella Pty Ltd, Ganellen
Infrastructure Pty Ltd, and GN Asset Services Pty Ltd.
The company's liquidators are:
Morgan John Kelly
Phil Quinlan
KPMG
Level 38, Tower Three
300 Barangaroo Avenue
Sydney, NSW
=========
C H I N A
=========
E-HOUSE (CHINA): S&P Withdraws 'CCC' LT Issuer Credit Rating
------------------------------------------------------------
S&P Global Ratings withdrew its 'CCC' long-term issuer credit
ratings on E-House (China) Enterprise Holdings Ltd. and its 'CCC'
long-term issue ratings on the company's senior unsecured notes at
E-House's request. The outlook was negative at the time of
withdrawal. E-House is a China-based real estate transaction
service provider.
HONGKONG JUNFA: Fitch Lowers LT FC IDR to 'B-', Outlook Negative
----------------------------------------------------------------
Fitch Ratings has downgraded China-based homebuilder Hong Kong
JunFa Property Company Limited's (Junfa) Long-Term Foreign-Currency
Issuer Default Rating (IDR) to 'B-' from 'B+'. The Outlook is
Negative. Fitch has also downgraded Junfa's senior unsecured rating
and the rating on Power Best Global Investments Limited's
outstanding bonds to 'B-' from 'B+' with a Recovery Rating of
'RR4'.
The downgrade is due to weakened liquidity and funding access. The
Negative Outlook reflects uncertainty in refinancing capital market
debt due in October and December 2022.
KEY RATING DRIVERS
Tight Liquidity: Junfa's unrestricted cash/short-term debt ratio
fell to 0.4x by end-June 2021, from 0.8x at end-2020. Unrestricted
cash was CNY4.5 billion at end-June 2021, against CNY2 billion of
onshore corporate bonds due in October 2022, USD237 million due in
December 2022 and CNY2 billion of corporate bonds due in March
2023.
Uncertainty in Refinancing: Junfa may seek to refinance its onshore
bonds by new issues and may also seek external funding for some
projects to generate cash to repay the offshore bonds due in
December. However, Fitch believes there is some execution risk in
obtaining external funding, as Junfa has yet to sign any agreements
with any parties yet.
Weakened Funding Access: Junfa's capital-market access appears to
have deteriorated, as its offshore bonds are trading at a
significant discount. Fitch believes the company may find it
challenging to issue or extend its bonds under current market
conditions, especially offshore.
Weaker Sales: The company's total contracted sales declined by 20%
to CNY53 billion in 2021. Fitch expects contracted sales to drop
further in 2022, driven by weaker demand and sentiment for the
sector in general. Kunming, the capital of Yunnan province, will
continue to drive contracted sales in 2022. The city also accounts
for the majority of Junfa's land bank. Junfa started diversifying
into other areas, such as Shanghai and Shenzhen, in 2019 and 2020,
but concentration risk remains.
Strong Position in Yunnan: Junfa has strong brand recognition in
Kunming and Yunnan province and was the city's top-selling
developer from 2009 to 2021. Junfa is highly experienced in
old-town redevelopment projects in Kunming. These projects take
longer than other primary development projects, but Junfa has a
strong record in relocating residents, demolition, development and
phased project launches. Junfa has also improved the infrastructure
and landscape surrounding the projects.
Sufficient Land Bank: Junfa's land bank life is around four years.
Much of Junfa's land bank is in areas that are the focus of
government redevelopment policies. Strong experience in urban
redevelopment gives Junfa a competitive advantage in obtaining
these low-cost projects. Fitch expects Junfa to maintain a gross
margin of around 30% for property development in 2022, matching
Fitch's estimate for 2021.
DERIVATION SUMMARY
Junfa's ratings reflect reduced funding access and liquidity
pressures over the next 12 months. Fitch believes that it may have
to rely on asset disposals to tackle the capital market maturities
in 2H22.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Contracted sales around CNY40 billio-45 billion in 2022 and
2023;
-- Contracted average selling price remains largely flat in 2022
and 2023;
-- Saleable landbank life around four years in 2022-2023;
-- Land premium to account for 20%-30% of sales receipts in 2022-
2023;
-- Capex of around CNY0.8 billion-1.0 billion a year to expand
the investment-property business in 2022-2023.
Key Recovery Rating Assumptions
The recovery analysis assumes that Junfa will be liquidated in a
bankruptcy as it is an asset-trading company. The liquidation value
approach always results in a much higher value than going concern,
given the nature of homebuilding.
Fitch has assumed a 10% administrative claim, in line with
criteria.
Liquidation Approach
The liquidation estimate reflects Fitch's view of the value of
balance-sheet assets that can be realised in a sale or liquidation
process conducted during bankruptcy or insolvency proceedings and
distributed to creditors.
Advance rate of 80%, raised from 70%, applied to accounts
receivable. This treatment is in line with Fitch's recovery rating
criteria.
Advance rate of 42% applied to the book value of investment
properties. The portfolio has an average rental yield of 2.5%,
which is reasonable. The assets are mainly a large scale trade
centre, and some office and shopping malls in Kunming.
The trade centre is an important project for the local government
and is part of its plans to develop the area into a second central
business district in Kunming. The implied rental yield on the
liquidation value for the investment-property portfolio would
improve to 6%, which will be considered acceptable in a secondary
market transaction.
Advance rate of 50%, lowered from 60%, applied to property, plant
and equipment, which mainly consists of buildings, the value of
which is insignificant.
Advance rate of 62%, lowered from 70%, applied to net property
inventory. The inventory mainly consists of completed properties
held for sales, and properties under development (PUD), prepayments
for redevelopment projects, and deposits for land acquisitions.
Different advance rates were applied to these different inventory
categories to derived the blended advance rates for net inventory.
Advance rate of 70% to completed properties held for sale.
Completed commodity housing units are closer to readily marketable
inventory. The company has historically gross margin for
development property of around 30%. Therefore, a higher advance
rate of 70% (against the typical 50% mentioned in the criteria for
inventory) was applied.
Advance rate of 50% to PUD and prepayment for development projects.
Unlike completed projects, PUD are more difficult to sell. These
assets are also in various stages of completion. A 50% advance rate
was applied. The PUD balance - before applying the advance rate -
is net of margin adjusted customer deposits.
Advance rate of 90% to deposits for land acquisitions. In a similar
way to completed commodity housing units, land held for development
is closer to readily marketable inventory provided it is in
satisfactory locations. The company's land generally is not located
in significantly disadvantaged areas. So Fitch considered a higher
advance rate than the typical 50% mentioned in the criteria.
Advance rate of 80% to prepayments for proposed development
projects (mainly redevelopment projects). Fitch views this as
similar to prepayments for land, as typically primary development
will go through land auction again and the developer that did the
primary development will be fully compensated even if they ended up
not securing the land in auction. So Fitch considered a higher
advance rate than the typical 50% mentioned in the criteria.
Advance rate of 50%, lowered from 70%, applied to joint-venture
(JV) net assets. JV assets typically include a combination of
completed units, PUD and land bank. A 50% advance rate was applied
in line with the baseline advance rate for inventories.
Advance rate of 0%, lowered from 60%, applied to excess cash, after
netting the amount of trade payables.
The allocation of value in the liability waterfall results in a
Recovery Rating corresponding to 'RR3' for the offshore senior
notes. However, the Recovery Rating for senior unsecured debt is at
'RR4', as China falls into Group D of creditor friendliness under
Fitch's Country-Specific Treatment of Recovery Ratings. The
Recovery Ratings for instruments by issuers with assets in this
group are subject to a cap of 'RR4'.
RATING SENSITIVITIES
Factor that could, individually or collectively, lead to positive
rating action/upgrade:
-- The Outlook may be revised to Stable if the negative
sensitivities are not met.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Deterioration in liquidity, slower progress than Fitch expects
in asset disposals or continued interruption to bond market
access;
-- Sustained deterioration in sales proceeds.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
Tight Liquidity: Junfa had unrestricted cash of CNY4.5 billion at
end-June 2021, while it had CNY11.8 billion of debts due in a year.
Junfa has CNY2 billion onshore private bonds due in October and
USD237 million offshore bonds due in December 2022. Fitch expects
the onshore secured bank and other loans for Junfa to be rolled
over.
ISSUER PROFILE
Junfa, established in Yunnan in 1998, is a private company. It
mainly focuses on old-town redevelopment projects, especially in
Kunming and other areas in Yunnan. It has the largest market
position in Kunming and has strong brand recognition in
south-western China.
SUMMARY OF FINANCIAL ADJUSTMENTS
Fitch's calculation of net property assets includes: PUD,
prepayment for land, other deposits or prepayments for urban
renewal projects, investment in JV and associates, investment
properties, land and buildings, amount due from JV and associates,
restricted cash, less contract liabilities adjusted by its gross
profit margin, payables and amount due to JV and associates.
ESG CONSIDERATIONS
Junfa has an ESG Relevance Score of '4' for Governance Structure,
as Junfa's ownership is concentrated on one individual, and it has
no independent directors on its board, which has a negative impact
on the credit profile, and is relevant to the ratings in
conjunction with other factors.
Junfa has an ESG Relevance Score of '4' for Financial Transparency,
as it is not a listed company and full financial information is not
widely available, which has a negative impact on the credit
profile, and is relevant to the ratings in conjunction with other
factors.
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This 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.
KUNMING MUNICIPAL: Fitch Affirms Then Withdraws 'BB' IDRs
---------------------------------------------------------
Fitch Ratings has revised the Outlook on China-based Kunming
Municipal Urban Construction Investment & Development Co., Ltd.'s
(KUCI) Foreign- and Local-Currency Issuer Default Ratings (IDR) to
Negative, from Stable, and has affirmed the ratings at 'BB'. Fitch
has also affirmed the rating on KUCI's USD500 million 5.8% senior
unsecured notes due 2022 at 'BB'. At the same time, Fitch has
withdrawn all the ratings.
The company continues to experience capital market volatility amid
tighter government policies. KUCI has been issuing onshore bonds to
reduce its concentration in non-standard financing. However, the
bonds have carried high borrowing costs and short maturity terms of
within one year since 2H21, which could diminish KUCI's financing
resilience. The Outlook also factors in the uncertainty over the
sufficiency of government financial support to improve KUCI's weak
financial profile and liquidity. These are likely to lead to
Fitch's lower assessment of two of KUCI's key rating factors,
support track record and financial implications of a default,
resulting in a downward assessment of its government-related entity
(GRE) score.
Fitch has chosen to withdraw the Ratings of KUCI for commercial
reasons.
KEY RATING DRIVERS
'Very Strong' Status, Ownership and Control: KUCI is a limited
liability company that is 84.42% owned by the Kunming State-owned
Assets Supervision and Administration Commission (SASAC), a
sub-department of the Kunming city government. The remaining 15.58%
is held by Kunming Development Investment Group Co., Ltd, which is
fully owned by Kunming SASAC. Kunming SASAC has direct control and
oversight of KUCI's board and monitors its strategic planning and
finances. All major corporate events require government approval.
'Strong' Support Record: Kunming municipality provides support to
help KUCI in key infrastructure construction and primary-land
development. The municipality loaned KUCI CNY200 million in 2020
and CNY1.9 billion in 2021 from the proceeds of a government-bond
issue to fund investment in primary-land development. The
government also returned the cost of the primary-land development
to KUCI, contributing most of the company's revenue and cash flow.
The amount received in 2021 of around CNY2.8 billion was 40% lower
than in 2020 due to the company's land sales.
The government also provided a cash capital injection of CNY224
million and an asset injection of CNY187 million in 2021, which was
booked under capital reserves.
'Moderate' Socio-Political Impact of Default: KUCI is one of
Kunming government's major urban developers. Its default is likely
to have a political impact on the government, requiring the
mobilisation of resources to ensure the continued provision of key
public services by administrative orders or via emergency liquidity
support. The government may also have to appoint other urban
developers and operators to assume some of KUCI's duties. However,
any disruption is likely to be temporary and moderate.
'Moderate' Financial Implications of Default: KUCI is one of
Kunming municipality's major GREs and the government's failure to
provide it with timely support, leading to a default, could imply
that the government is in financial difficulty and hurt its
credibility. KUCI has experienced capital market volatility amid
tighter government policies. KUCI's increasing short-term debt and
high borrowing costs could also lower its financing resilience, and
thus reduce the cost and access implications of a default.
Standalone Credit Profile of 'b-': Fitch assesses KUCI's revenue
defensibility as 'Weaker' under its Public-Sector,
Revenue-Supported Entities Rating Criteria due to the company's
reliance on the city's urban development plan and low bargaining
power on pricing. Operating risk is assessed at 'Midrange' due to
well-identified cost drivers and an adequate supply of resources
and labour with limited volatility.
Its financial profile is assessed at 'Weaker', as capital-intensive
public-work investments and low profit margins in its
urban-development business have led to high leverage. Fitch's
rating case forecasts adjusted net debt/EBITDA to exceed 90x in
2021-2025.
DERIVATION SUMMARY
KUCI's ratings are assessed under Fitch's GRE rating criteria,
reflecting Kunming municipality's strong control over the company
and the support provided. Fitch also factors in the socio-political
and financial implications for the government if KUCI were to
default.
KUCI's Standalone Credit Profile is assessed under Fitch's Public
Sector, Revenue-Supported Entities Rating Criteria, while the IDRs
are mainly driven by the four GRE rating factors.
RATING SENSITIVITIES
Not applicable, as the ratings have been withdrawn.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Sovereigns, Public Finance
and Infrastructure issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of three notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This 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.
Following the withdrawal of KUCI's ratings, Fitch will no longer
provide the associated ESG Relevance Scores.
REDCO PROPERTIES: S&P Lowers ICR to 'B-', On CreditWatch Negative
-----------------------------------------------------------------
On Feb. 28, 2022, S&P Global Ratings lowered its long-term issuer
credit rating on China-based property developer Redco Properties
Group Ltd. to 'B-' from 'B' and its issue rating on its senior
unsecured notes to 'CCC+' from 'B-'. S&P also placed the ratings on
CreditWatch with negative implications.
The CreditWatch negative placement indicates that S&P could lower
Redco's rating, potentially by more than one notch, if Redco fails
to implement a solid plan to address its upcoming offshore
maturities.
S&P said, "The downgrade reflects our view that Redco's liquidity
has deteriorated amid operational and financial challenges. We
estimate the company's unrestricted cash balance to have weakened
considerably as of end-2021, from Chinese renminbi (RMB) 11.3
billion as of end-June 2021. Redco's limited ability to replenish
liquidity from sales inflow over the past few months informs our
view, with the company's contracted sales falling 16% year over
year in the second half of 2021. We also believe Redco has paid
down some project level debt with cash, which has further reduced
its liquidity buffer."
The company faces heightened refinancing risks, given its
significant offshore maturities or puttable in 2022, totaling
US$834 million (about RMB5.3 billion), by S&P's estimate. Redco may
not be able to refinance at reasonable costs and will likely need
to repay its offshore maturities with cash, given recent volatility
in offshore capital markets and surging yields on Redco's existing
senior notes. This will likely further hamper the company's
liquidity profile.
Redco's access to its cash balance for debt servicing could be
highly uncertain. S&P believes Redco's cash balance at the holding
company level as of end-2021, is insufficient to cover the entirety
of its upcoming short-term offshore debt maturities. The company
will need to mobilize cash from the project level, but there
remains uncertainty surrounding the accessibility of funds in
project escrow accounts due to regulatory hurdles. Redco's exposure
in lower-tier cities may compound the problem, because typically a
higher portion of presale funds are regulated for projects in these
cities. In addition, the company may need to negotiate with joint
venture partners or banks before upstreaming cash from the project
level, which could be difficult given the current tough business
environment.
S&P said, "We placed the rating on CreditWatch with negative
implications to reflect the rising uncertainty over Redco's ability
to strengthen its liquidity position ahead of its near-term
offshore maturities. We understand that the company is taking steps
to shore up offshore liquidity in advance of its outstanding
US$122.5 million syndicated loan due March 29, 2022, and US$236
million senior notes due April 13, 2022. Redco needs to conduct a
timely refinancing in order to restore market confidence and
preserve liquidity ahead of its remaining offshore maturities in
2022, in our assessment. The CreditWatch negative placement
reflects the heightened risk that Redco's liquidity could further
weaken if it is unable to obtain new funding sources or refinance
its debt maturities in a timely manner, given the looming
maturities."
Relationships with onshore banks and trust companies will be key
for Redco to sustain its liquidity profile. S&P estimates the
developer has RMB0.5 billion-RMB1.0 billion of trust loans due
within 2022, which represents less than 10% of its short-term debt.
Despite the relatively small exposure, early repayments or
inability to roll over trust loans could further tighten the
company's liquidity.
Refinancing risk for Redco could increase if sales deteriorate
further, though S&P does not anticipate significant difficulties
for Redco in refinancing onshore bank loans. This is because these
loans are generally secured by project assets. Sales over 2022
could remain under pressure, even though monthly sales in January
were flat year on year. This is because most of the company's
projects are in non-prime locations with low average selling prices
of RMB8,000-RMB9,000 per square meter. Also, sell-through rates
could be challenging because homebuyers' sentiment remains weak, in
our assessment.
CreditWatch
S&P said, "We expect to resolve the CreditWatch as quickly as
practically possible once we have more visibility on Redco's
ability to address its upcoming offshore maturities, including a
US$122.5 million syndicated loan due March 29, 2022, and US$236
million senior notes due April 13, 2022.
"We could lower the rating, potentially by more than one notch, if
Redco fails to implement a solid plan to address its upcoming
offshore maturities, including its syndicated loans due March 29,
2022."
Redco develops residential and commercial properties in China. The
company operates projects mainly in the Yangtze River midstream
region, Yangtze River Delta region, Bohai Economic Rim, Greater Bay
Area, and Western Taiwan Straits. Despite the broad coverage, Redco
still has some project concentration in its home market of
Nanchang, as well as Hefei and Jinan. As of June 30, 2021, the
company had about 131 projects with a total gross floor area of
23.7 million square meters spread across 46 cities.
Redco is also involved in the provision of construction design and
cost consulting, healthcare services, and the operation and
management of cultural tourism projects. Redco was founded in 1992.
It is listed on the Hong Kong stock exchange and is headquartered
in Shenzhen.
=================
H O N G K O N G
=================
GENTING HONG KONG: Dream Cruises' World Dream to Stop Sailing
-------------------------------------------------------------
The Straits Times reports that Dream Cruises' vessel World Dream,
one of two ships that began cruises to nowhere pilots in Singapore
in 2020, will cease operations after it returns to the Republic's
shores today, March 2, with the operator saying it no longer has
the financial capacity to keep it going.
According to the report, the death knell sounded on Feb. 28 has
been anticipated and dreaded for more than a month, after Dream
Cruises first said it would suspend ticket sales for two weeks on
Jan. 23, as its parent company Genting Hong Kong filed to be wound
up at the Supreme Court of Bermuda.
Following Genting Hong Kong's statement on Feb. 28, those who had
paid deposits for scheduled sailings after March 2 will have to
submit their claims to the company, although whether these will be
successful is as yet unknown, the report relays.
"The company is currently assessing the impact of the cessation of
operation of the World Dream, in particular its ability to meet
potential refund claims," Genting Hong Kong said, notes the report.
"Despite the continued efforts to source and introduce external
funding, the group's liquidity continues to deteriorate, given the
absence of sustainable operational income under current challenging
circumstances and in the face of mounting creditor pressure which
poses an immediate threat to the operation of the vessel."
In the first year of the pandemic, the cruises to nowhere, so
called because they made round trips out at sea with no port of
call, were one of Singaporeans' first opportunities to partially
satisfy their wanderlust, the report says. Launched in November
2020 with the other cruise to nowhere vessel Royal Caribbean
International's Quantum of the Seas, more than 82,000 people had
set sail on these two vessels by early March last year.
Of the total cruise-to-nowhere passengers, Dream Cruises' World
Dream accounted for about 60 per cent. But Covid-19 restrictions
continued to limit capacity, and passenger numbers still remained a
far cry from when the ships could make port calls at nearby
islands.
Genting Hong Kong owns the Star Cruises and luxury Dream Cruises
lines, which ply the Asia-Pacific and the luxury Crystal Cruises
line headquartered in Miami, Florida.
Those who wish to submit their claims must attach their booking
confirmation and payment records and e-mail
ProjectGenting@alvarezandmarsal.com for assessment.
About Genting Hong Kong
Genting Hong Kong Limited is a Hong Kong-based investment holding
company principally engaged in cruise businesses. The Company
operates through two segments. Cruise and Cruise-related Activities
segment is engaged in the sales of passenger tickets, the sales of
foods and beverages onboard, shore excursion, as well as the
provision of onboard entertainment and other onboard services.
Non-cruise Activities segment is engaged in onshore hotel
businesses, travel agency, aviation businesses, entertainment
businesses and shipyard businesses, among others. The Company
operates businesses in Asia Pacific, North America and Europe,
among others.
As reported in the Troubled Company Reporter-Asia Pacific on Jan.
20, 2022, Genting Hong Kong has filed a winding-up petition in
Bermuda, after the bankruptcy of its shipyard in Germany triggered
US$2.78 billion of debt and forced Asia's largest operator of sea
cruises to be liquidated.
The owner of Dream Cruise Holding appointed Alvarez & Marsal's
Edward Simon Middleton and Tiffany Wong Wing-sze as provisional
liquidators, South China Morning Post disclosed citing a filing on
Jan. 19 to the Hong Kong stock exchange.
Dream Cruises Holding Ltd., an indirect non-wholly owned unit of
Genting Hong Kong that has also filed a winding up petition, will
continue to operate its fleet in the region, the company said.
=========
I N D I A
=========
BALA JI: CRISIL Keeps B+ Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Shree Bala Ji
Rice & General Mills (SBJR) continues to be 'CRISIL B+/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 25 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SBJR for
obtaining information through letters and emails dated December 14,
2021 and January 12, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SBJR, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SBJR
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SBJR continue to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Set up in 2001 as a partnership firm by Mr Mahavir Prasad and Mr
Bharat Bhushan in Fazilka, Punjab, SBJR processes basmati and
non-basmati rice for the domestic and global markets. In 2010, Mr
Ashwani Modi joined the firm as a partner.
BHAVANI COTEX: ICRA Keeps B+ Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has retained the long-term rating of Bhavani Cotex in the
'Issuer Not Cooperating' category. The ratings are denoted as
[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 6.90 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Term Loan 1.60 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
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 but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
BC was established as a partnership firm in July, 2009. Mr.
Gordhanbhai Patel, Mr. Rakeshbhai Patel and Mr. Naineshbhai Patel
manage the operations of the firm and they have extensive
experience in cotton business. The firm's manufacturing unit is
located at Bodeli in Vadodara district, Gujarat. The plant is
equipped with with 32 ginning machines and 1 pressing machine
having an installed capacity of producing 300 cotton bales per day.
The firm is also involved in trading of cotton bales.
DODHIA TECHNO: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Dodhia Techno
Engineering Private Limited (DTEPL) continue to be 'CRISIL D/CRISIL
D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.1 CRISIL D (Issuer Not
Cooperating)
Cash Credit 6 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 0.4 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term
Bank Loan Facility 1.0 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with DTEPL for
obtaining information through letters and emails dated December 14,
2021 and January 12, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of DTEPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on DTEPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
DTEPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
DTEPL, established in 1996 by the Mumbai-based Dodhia family, is a
100-per-cent export-oriented unit. It undertakes turnkey projects
in Africa for various industries including plastics, food and
beverages, chemicals, packaging, and sugar. Mr. Bipin Dodhia
oversees the company's operations.
FUTURE RETAIL: Suspends Store Operations on Reliance Takeover Plan
------------------------------------------------------------------
Reuters reports that Future Retail Ltd suspended most of its online
and offline operations as stores remained shut on Sunday [Feb. 27],
after rival Reliance bid to take over its flagship supermarkets for
missed lease payments.
Reliance Industries Ltd will rebrand the Future stores after the
company failed to make payments for them to Reliance, sources told
Reuters on Saturday [Feb. 26], closing most outlets of the popular
Big Bazaar chain.
Though Future has more than 1,700 outlets, all the 200 stores that
Reliance will rebrand as its own will be Big Bazaars, which was
started around two decades ago by Kishore Biyani, dubbed as India's
retail king for transforming the sector.
According to Reuters, Future told stock exchanges on Feb. 26 the
company was "scaling down its operations."
Future's stores across India remained shut on Feb. 27 as Reliance
did stock-taking ahead of a rebranding, people familiar with the
plans said.
"We regret to inform you that currently stores are non-operational
for 2 days," Big Bazaar told a Twitter user who complained about a
closure, Reuters relays.
Future's e-commerce mobile app and website were also not available
for online ordering, Reuters notes.
According to Reuters, Reliance's move assumes significance as it
follows failed efforts since 2020 to close a $3.4 billion deal to
acquire the retail assets of Future, whose partner Amazon.com Inc
has blocked the transaction by citing violation of contracts.
Future denies any wrongdoing.
Reliance had transferred leases of some stores of debt-laden Future
to its name and sublet them to Future, but is now taking over as
Future did not make payments, the report says. Reliance has offered
store staff jobs on existing terms.
"All employees, consumers, and everyone in India - we are all
attached to the Big Bazaar brand," Reuters quotes a Big Bazaar
employee as saying on Feb. 27. "So you feel sad this is
happening."
In blocking the Future-Reliance deal, Amazon has long argued that
Future violated the terms of a 2019 deal in which the U.S. giant
invested $200 million in the Indian company. Amazon's position has
been backed so far by a Singapore arbitrator and Indian courts, the
report notes.
Reuters says the move will upset plans of Amazon, which hoped one
day to have a piece of Future's stores itself. But the U.S. firm
appears to have little legal recourse, as store landlords appear to
have independently given the leases to Reliance, said a lawyer
familiar with the dispute.
"Probably Amazon didn't think Reliance will be this aggressive,"
said the lawyer.
About Future Group
Future Group operates multi-branded retail outlets. The company's
retail chains include department stores, outlet stores, sportswear,
home improvement and consumer durables, supermarket, and
convenience stores as well as food parks.
Cash-strapped Future Group owes around INR19,000 crore to banks and
INR6,000 crore to the vendors. Future Retail Limited owes INR6,278
crore debt with 28 banks, including SBI, Union Bank, Bank of India,
Bank of Baroda, Axis Bank, and IDBI Bank, among others.
Future, India's second-largest retailer, has sought to complete its
$3.4 billion retail asset sale to Reliance Retail since 2020. The
Indian Supreme Court has upheld the Singapore Emergency
Arbitrator's award against Reliance Retail's takeover of Future
group companies.
GURUKRUPA METALS: ICRA Keeps B- Debt Rating in Not Cooperating
--------------------------------------------------------------
ICRA has retained the long-term rating of Gurukrupa Metals in the
'Issuer Not Cooperating' category. The rating is denoted as
[ICRA]B-(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 10.00 [ICRA]B- (Stable) ISSUER NOT
Cash Credit COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
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 but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Gurukrupa Metals (GM) is a metal merchant based in Jamnagar,
Gujarat and has been in operations since September 2011. The firm
primarily trades imported non-ferrous metallic scrap, such as brass
scrap, ingots, copper alloys and zinc in and around Jamnagar.
INDCHEM INC: CRISIL Keeps B+ Debt Rating in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Indchem Inc
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.5 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with Indchem for
obtaining information through letters and emails dated December 21,
2021 and January 20, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of Indchem, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
Indchem is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of Indchem continue to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Established in 2009 as a proprietorship firm by Mr. Santosh Vasan,
Indchem is engaged in trading and distribution of chemicals such as
caustic soda and caustic potash. The firm mainly supplies to HUL's
six factories.
KAY BEE: CRISIL Keeps D Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Kay Bee Cotgin
Private Limited (KBCPL) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with KBCPL for
obtaining information through letters and emails dated December 14,
2021 and January 12, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of KBCPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KBCPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
KBCPL continues to be 'CRISIL D Issuer Not Cooperating'.
Incorporated in 1997, KBCPL carries out cotton ginning and pressing
operations at its facility in Abohar, Punjab. The operations are
managed by Mr. Ashok Gandhi and family.
KESHAV HOLIDAY: ICRA Moves B+ Debt Rating to Not Cooperating
------------------------------------------------------------
ICRA has moved the ratings for the bank facilities of Keshav
Holiday Resorts Private Limited (KHRPL) to the 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]B+ (Stable)
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 50.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating Moved to
Cash Credit the 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Keshav Holiday Resorts Private limited, 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, a rating view has been
taken on the entity based on the best available information.
Incorporated in 1992, KHRPL was founded by Mr. Shankar Chaudhary.
The company opened India's first water park in 1993 by name of
Shanku's in Mehsana, Gujarat. The water park has a capacity to
accommodate 11,000 visitors per day and offers 39 rides. The
company concluded a capex of ~Rs. 180 crore in FY2020 to install
new rides and modernise the water park. KHRPL also has a 3-star
hotel named The Retreat, which has 71 rooms, 2-restaurant along
with liquor store, natural health care centre, catering services,
Shanku's Entertainment etc. KHRPL is a part of the Shanku's Group,
which also has interest in hospital/medical, pharma, fertilizers,
education and agricultural products businesses.
In FY2020 (provisional financials), the firm reported a profit
(profit before tax) of INR8.9 crore on an operating income of
INR34.4 crore, as compared to a net profit of INR2.8 crore on an
operating income of INR25.6 crore in FY2019.
KHIWAJ TRADERS: CRISIL Keeps B Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shree Khiwaj
Traders (SKT) continue to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 2 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with SKT for
obtaining information through letters and emails dated December 14,
2021 and January 12, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SKT, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SKT
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SKT continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Established as a partnership firm in 2003, SKT is engaged in
distribution of FMCG products of Hindustan Unilever Limited (HUL;
rated CRISIL AAA/Stable) and Pepsico India. Based in Hyderabad
(Telangana), the firm is managed by Mr.Nirmal Sharma and Mr. Vinod
Kumar Joshi.
KISAN GINNING: CRISIL Keeps B+ Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Kisan Ginning
& Pressing (KGP) continue to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.75 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Long Term 3.25 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating)
Rupee Term Loan 2.95 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with KGP for
obtaining information through letters and emails dated December 14,
2021 and January 12, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of KGP, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KGP
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
KGP continue to be 'CRISIL B+/Stable Issuer Not Cooperating'.
KGP was setup in March 2015 by Mr. Radheshyam Adaniya and family.
The firm is engaged in ginning of raw cotton (kapas). It began
commercial production in March 2015 at its unit in Rajura
(Maharashtra).
L'ECOLE CHEMPAKA: CRISIL Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of L'ecole
Chempaka Society for Educare (L'ecole; part of the L'ecole group)
continue to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.5 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Long Term
Bank Loan Facility 1.1 CRISIL B+/Stable (Issuer Not
Cooperating)
Term Loan 2.4 CRISIL B+/Stable (Issuer Not
Cooperating)
Term Loan 2.0 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with L'ecole for
obtaining information through letters and emails dated December 14,
2021 and January 12, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of L'ecole, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
L'ecole is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of L'ecole continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
For arriving at the rating, CRISIL Ratings has combined the
business and financial risk profiles of L'ecole and Chempaka
Kindergarten. This is because these entities, together referred to
as the L'ecole group, have the same business, common management,
and fungible cash flow.
The Thiruvananthapuram-based L'ecole runs a school, Lecole
Chempaka, which provides education till Class 12 under the Indian
Certificate of Secondary Education. They also own Chempaka
Kindergarten. Operations are managed by Dr. Daphne Gomez and Mr.
Vernon Gomez.
LAKSHMI POULTRY: ICRA Keeps B+ Debt Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has retained the long-term and short-term ratings of Sri
Lakshmi Poultry Complex Private Limited in the 'Issuer Not
Cooperating' category. The ratings are denoted as
[ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 32.00 [ICRA]B+ (Stable) ISSUER NOT
Cash Credit COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Fund based- 3.50 [ICRA]B+ (Stable) ISSUER NOT
Term Loan COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Unallocated 4.50 [ICRA]B+(Stable)/[ICRA]A4;
ISSUER NOT COOPERATING;
Rating continues to remain
under 'Issuer Not Cooperating'
category
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 but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Sri Lakshmi Poultry Complex Private Limited started as a
partnership firm in 1989 and subsequently incorporated as a private
limited company in October 2014. The company is engaged in
commercial layer poultry farming. The total installed capacity of
1316912-layer birds is spread across five farms in different
locations in Devangere district in Karnataka.
LUCKY EXPORTS: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Lucky
Exports in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based- 46.00 [ICRA]D; ISSUER NOT COOPERATING;
Limits Rating Continues to remain under
'Issuer Not Cooperating'
Category
Non Fund 120.00 [ICRA]D; ISSUER NOT COOPERATING;
Based-Limits Rating Continues to remain under
'Issuer Not Cooperating'
Category
Unallocated 4.00 [ICRA]D; ISSUER NOT COOPERATING;
Limits Rating continues to remain under
'Issuer Not Cooperating'
Category
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 but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Patron Industries Private Limited (PIPL) was founded by Mr. Pradeep
Rohra in the year 1991 in Mumbai as a consignment agent of DCW Ltd.
for PVC resin. In 2005-06, the promoter also set up a company viz.
MEPCAB FZCO in Dubai to trade in cables in the Middle East market.
Subsequently, MEPCAB FZCO set up its own cable manufacturing
facility at the Jebel Ali Free Zone in Dubai in 2008. PIPL also set
up its own copper wire drawing facility of capacity of 1725 metric
tonnes per annum (MTPA) in Silvassa in 2008 to act as a feeder
factory for MEPCAB's unit in Dubai. At present, PIPL has two
distinct lines of business: i) Trading/distribution of PVC resin
from DCW Ltd, and ii) manufacture and export of copper wire for
exclusive supply to its own group concern viz. MEPCAB in Dubai.
MALANKARA PLANTATIONS: ICRA Keeps B+ Rating in Not Cooperating
--------------------------------------------------------------
ICRA has retained the long-term rating of Malankara Plantations
Limited in the 'Issuer Not Cooperating' category. The rating is
denoted as [ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 15.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based/CC COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
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 but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Malankara Plantations Limited was founded in 1910 as a joint stock
company under the name Malankara Rubber & Produce Co Limited by its
founder Late Mr. P John. The company is currently engaged in the
production of tea and rubber at it two tea estates – Karimtharuvi
and Penshurst – in Elappara and a rubber estate in Thodupuzha at
Idukki district (Kerala). The company also operates an automobile
dealership of Tata Motors at Kottayam established in 2013. It
currently operates two showrooms and one service centre along with
a Tata Motors Assured (TMA) centre.
MOHAN RAO: ICRA Keeps B Debt Ratings in Not Cooperating Category
----------------------------------------------------------------
ICRA has retained the long-term rating of Mohan Rao And Company in
the 'Issuer Not Cooperating' category. The ratings are denoted as
[ICRA]B(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 10.00 [ICRA]B (Stable) ISSUER NOT
Term Loan COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Unallocated 2.00 [ICRA]B(Stable); ISSUER NOT
COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
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 but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Mohan Rao & Co. (MRC) was established in 1972 as cotton merchant
and commission agent for cotton bales, seed, and cakes at Bhainsa
in Adilabad district of Andhra Pradesh promoted by Ms.Laxmi Bai,
Mr. Mohan Rao Patel and Mr. Akhilesh Bhosle. The firm operates with
53 double roller gins and one pressing unit located in Bhainsa,
Telangana. The firm's operations have been managed by its partners
Mr.Mohan Rao Patel, Mr.Gopal Rao Bhosle, Mr.Abhinav Bhosle and Ms.
Anasuya Bai Patel.
MPL MOTORS: CRISIL Keeps C Debt Ratings in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of MPL Motors
Private Limited (MMPL) continue to be 'CRISIL C Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1.6 CRISIL C (Issuer Not
Cooperating)
Inventory Funding 2.5 CRISIL C (Issuer Not
Facility Cooperating)
CRISIL Ratings has been consistently following up with MMPL for
obtaining information through letters and emails dated December 21,
2021 and January 12, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MMPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MMPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MMPL continue to be 'CRISIL C Issuer Not Cooperating'.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MMPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MMPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MMPL continue to be 'CRISIL C Issuer Not Cooperating'.
MMPL, incorporated in 1998, is an authorized dealer for commercial
vehicles of M&M in Chennai. MAAPL, incorporated in 2000, authorized
dealer for passenger vehicles of M&M in Chennai. The group is
promoted by Mr. S. Ashok and his family.
NSN REDDY: ICRA Keeps B+ Debt Rating in Not Cooperating Category
----------------------------------------------------------------
ICRA has retained the long-term rating of NSN Reddy Rice Industry
in the 'Issuer Not Cooperating' category. The rating is denoted as
[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 34.00 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
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 but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
NSN Reddy Rice Industry was established as a partnership firm in
2006. The company is engaged in milling of paddy to produce raw and
boiled rice. It is managed by Shri Nallamilli Bheemeswara Reddy
(Managing Partner) and Smt. Nallamilli Prasanna Lakshmi (Partner).
The installed capacity of the plant is 30TPH and is located at
Chollangi, Kakinada in East Godavari District of Andhra Pradesh.
PR.M. MODERN: CRISIL Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of PR.M. Modern
Rice Mill (PRM) continue to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B+/Stable (Issuer Not
Cooperating)
Working Capital
Demand Loan 1 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PRM for
obtaining information through letters and emails dated December 14,
2021 and January 12, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of PRM, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PRM
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PRM continue to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Established in 1980 by Mr Murugan as a proprietary concern, PRM
processes rice at its manufacturing facilities in Puduvayal (Tamil
Nadu).
PRAJAY PROPERTIES: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Prajay
Properties Private Limited (PPPL; part of the Prajay group)
continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Project Loan 50 CRISIL D (Issuer Not
Cooperating)
Project Loan 20 CRISIL D (Issuer Not
Cooperating)
Project Loan 21 CRISIL D (Issuer Not
Cooperating)
Project Loan 30 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 0.7 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with PPPL for
obtaining information through letters and emails dated December 14,
2021 and January 12, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of PPPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PPPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PPPL continue to be 'CRISIL D Issuer Not Cooperating'.
For arriving at the rating, CRISIL Ratings has combined the
business and financial risk profile of PPPL and its wholly-owned
subsidiary - Prajay Land Capital Pvt Ltd (PLCPL), together referred
to as the Prajay group. This is because each company owns a part of
the land on which the Prajay Megapolis project is being
constructed, and PPPL will pay a revenue share to PLCPL for the
proportion of land owned by the latter.
PPPL, incorporated in 2007 by Prajay Engineers Syndicate Ltd, is
developing a high-rise residential real estate project ' Prajay
Megapolis - in Hyderabad (Andhra Pradesh). State General Reserve
Fund, Oman, has invested around Rs.659 million in PPPL by way of
compulsory convertible debentures. PLCPL, a wholly-owned subsidiary
of PPPL, owns 8.35 acres of land out of the total 17.12 acres under
development.
PRAMUKH COPPER: ICRA Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has retained the long-term and short-term ratings of Pramukh
Copper Pvt. Ltd. in the 'Issuer Not Cooperating' category. The
ratings are denoted as [ICRA]D/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 5.00 [ICRA]D; ISSUER NOT COOPERATING;
Rating Continues to remain under
'Issuer Not Cooperating'
Category
Term Loan 1.75 [ICRA]D; ISSUER NOT COOPERATING;
Rating Continues to remain under
'Issuer Not Cooperating'
Category
Letter of Credit/ 5.00 [ICRA]D; ISSUER NOT COOPERATING;
Buyer's Credit Rating Continues to remain under
'Issuer Not Cooperating'
Category
Bank Guarantee 1.00 [ICRA]D; ISSUER NOT COOPERATING;
Rating Continues to remain under
'Issuer Not Cooperating'
Category
Forward Contract 0.10 [ICRA]D; ISSUER NOT COOPERATING;
Rating Continues to remain under
'Issuer Not Cooperating'
Category
Unallocated 2.15 [ICRA]D/[ICRA]D; ISSUER NOT
Limits COOPERATING; Rating continues to
remain under 'Issuer Not
Cooperating' category
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 but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Established in January 2011, Pramukh Copper Private Limited (PCPL)
is a private limited company involved in processing copper cathodes
and copper scraps to produce copper bus bar and profiles, round
copper rods, copper strips and copper coils. PCPL also procures
copper rods from outside and modifies them in terms of sizing and
length before selling them to the final customers. Furthermore,
PCPL also does production on job work basis. PCPL's plant is
located at Silvassa, Dadra Nagar Haveli, and has an installed
capacity of around 1500 MTPA.
R. K. ENGINEERING: CRISIL Keeps B Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of R. K.
Engineering Industries (RK) continue to be 'CRISIL B/Stable Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1 CRISIL B/Stable (Issuer Not
Cooperating)
Long Term Loan 1.3 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 7.7 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with RK for
obtaining information through letters and emails dated December 21,
2021 and January 20, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of RK, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RK is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of RK
continue to be 'CRISIL B/Stable Issuer Not Cooperating'.
RK, based out of Chennai, manufactures auto components for
two-wheeler manufacturers. It has 2 manufacturing units in Chennai.
The firm's daily operations are managed by Mr. G. Rajasekaran,
Managing partner of the firm.
RESHMA FABRICS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Reshma
Fabrics Ltd (RFL) continue to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.5 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Long Term 1.0 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 6.5 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with RFL for
obtaining information through letters and emails dated December 14,
2021 and January 12, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of RFL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RFL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RFL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
RFL was incorporated in 1993. In December 2014, the management was
taken over by Mr. D N Patel, who has an experience of more than 20
years in the industry. RFL currently undertakes weaving of grey
cloth on a job-work basis at its facility in Ahmedabad (Gujarat).
RKS STEEL: CRISIL Lowers Rating on INR17.4cr Long Term Loan to B
----------------------------------------------------------------
CRISIL Ratings has downgraded its rating on long-term bank
facilities of RKS Steel Industries Pvt Ltd to 'CRISIL B/Stable'
from CRISIL B+/Stable' and reaffirmed the short-term rating at
'CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 3 CRISIL A4 (Reaffirmed)
Cash Credit 17 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
Long Term Loan 17.4 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
Long Term Loan 3 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
The downgrade reflects weakening of the financial risk profile of
RKS on account of fluctuation in the operating margin and higher
reliance on external debt. Low profitability and high debt have
resulted in negligible cash accrual vis-à-vis the large debt
obligation, which is partially supported by need-based unsecured
loan and equity from the promoters.
The ratings reflect the company's weak financial risk profile and
susceptibility to volatility in raw material prices. These
weaknesses are partially offset by the extensive experience of the
promoter in the steel wire industry and his funding support.
Analytical approach
Unsecured loan of Rs 5.97 crore provided by the promoter as on
March 31, 2021, has been treated as debt because of withdrawal of
funds from the promotors.
Key rating drivers and detailed description
Weaknesses
* Susceptibility to volatility in raw materials prices constraining
profitability: Because of volatility in the prices of raw material
(steel) and low pricing flexibility on account of the competitive
environment, the operating margin has fluctuated widely over the
three fiscals through 2022 and is expected at 4-5% in the ongoing
fiscal. Fragmentation in the industry on account of the presence of
several unorganized players has led to intense competition and
affected the bargaining power and pricing flexibility of the
company, resulting in fall in profitability. Stable and improving
profitability through inclusion of higher-margin products in the
portfolio will remain a key monitorable.
* Weak financial risk profile: The financial risk profile has
weakened on account of fluctuation in the operating margin and
higher reliance on external debt, as indicated by expected gearing
and total outside liabilities to tangible networth ratio of 5.45
and 4.95 times, respectively, as on March 31, 2022. Lower
profitability and higher fixed expenses have resulted in weakening
of networth, which is expected at around Rs 9.87 crore as on March
31, 2022, compared with 12.20 crore a year earlier. Debt protection
metrics have weakened, as indicated by expected interest coverage
of 0.9 time in fiscal 2022. In the absence of any major debt-funded
capex and with decline in debt, improvement in the financial risk
profile shall remain a key monitorable.
Strength
* Promoter's extensive experience and funding support: The
three-decade-long experience of the promoter, his strong
understanding of the market dynamics and healthy relationships with
suppliers and customers have resulted in increase in the scale of
operations, as indicated by expected revenue of Rs 79.5 crore in
fiscal 2022 (Rs 54 crore in the previous fiscal). Furthermore, the
promoter has aided the working capital requirement through timely
infusion of unsecured loans (Rs 10.30 crore as on February 11,
2022), which shall continue over the medium term as well.
Liquidity: Poor
The company's poor liquidity is reflected in insufficient cash
accrual vis-à-vis the debt obligation of around Rs 5.84 crore in
fiscal 2022. Current ratio remains low and is expected at 1.22
times in the ongoing fiscal. Fund-based limit of 21 crore was
utilized at 51.46% over the 12 months through September 2021.
Repayments are partially supported by need-based funds from the
promoters.
Outlook: Stable
RKS will continue to benefit from the promoter's extensive
experience in the steel industry.
Rating sensitivity factors
Upward factors
* Sustained growth in revenue and profitability resulting in net
cash accrual to debt obligation ratio of over 1.2 times
* Improvement in the capital structure leading to overall
improvement in the financial risk profile
Downward factors
* Further weakening of the debt protection metrics, with interest
coverage ratio at below 1 time
* Steep decline in revenue and profitability resulting in
continuous negative cash accrual
* Withdrawal of funds by the promoters constraining liquidity
* Major debt-funded capital expenditure weakening the financial
risk profile
RKS was formed as a proprietary concern by Mr Rakesh Mahajan in
2007 and was reconstituted as a private limited company in 2018.
The firm manufactures steel, wires, galvanised iron wires, chain
spring wires and hard bright wires at its facility in Bhiwadi,
Rajasthan.
SAFFRON RESOURCES: CRISIL Keeps B+ Debt Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Saffron
Resources Private Limited (SRPL) continues to be 'CRISIL B+/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.75 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SRPL for
obtaining information through letters and emails dated December 14,
2021 and January 12, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SRPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SRPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SRPL continue to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Incorporated in September 2014 and promoted by Mr. Sourav Agarwal
and Mr. Amit Singhal, SRPL trades in coal and also provides
transportation and liaising services.
SAMDARIYA ABHUSHAN: ICRA Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------------
ICRA has retained the long-term ratings of Samdariya Abhushan Pvt
Ltd in the 'Issuer Not Cooperating' category. The ratings are
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- 25.00 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
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 but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in 2004, Samdariya Abhushan Pvt. Ltd. (SAPL) is a
private limited company promoted by the Samdariya family of
Jablpur, Madhya Pradesh. The company is engaged in retailing of
gold, diamond and studded jewellery in Jabalpur and Katni region of
Madhya Pradesh under its brand 'Samdariya Abhushan'. With over 150
years of experience in this business, the brand enjoys a good
reputation in the market over the organized players. The company
manufactures and also outsources the manufacturing of jewellery
from various suppliers. In terms of designing, given the company's
experience and understanding of its market the company makes
designs and sources designs from its suppliers. The major
operations of the company are looked after by Mr Piyush Samdariya.
The company operates two outlets in Jabalpur and an outlet also in
Katni region, this apart the company also operates two other
outlets in other SPV.
SANDEEP SINGH: CRISIL Keeps B Debt Rating in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Sandeep Singh
And Associates (SS) continues to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SS for
obtaining information through letters and emails dated December 14,
2021 and January 12, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SS, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SS is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of SS
continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
SS was set up as a partnership firm in 2015, by Mr. Sandeep Singh
and his wife. The firm is engaged in milling and processing of
paddy into rice, rice bran, broken rice and husk. It has an
installed paddy milling capacity of 10 tonnes per hour. The rice
mill is located at Allahabad.
SHRUTI SALES: CRISIL Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shruti Sales
Corporation (SSC) continue to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9.0 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Cash 1 CRISIL B+/Stable (Issuer Not
Credit Limit Cooperating)
CRISIL Ratings has been consistently following up with SSC for
obtaining information through letters and emails dated December 14,
2021 and January 12, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SSC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SSC
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SSC continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Established in 2014 as a proprietorship firm, Kolhapur
(Maharashtra)-based SSC processes and sells wheat flour, semolina,
all-purpose flour, among others. Mr Yuvraj Mali is the proprietor.
SHUKAN HOSPITAL: CRISIL Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings the ratings on bank facilities of Shukan Hospital
LLP (SH) continue to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.5 CRISIL B+/Stable (Issuer Not
Cooperating)
Term Loan 9.4 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SH for
obtaining information through letters and emails dated December 14,
2021 and January 12, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SH, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SH is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of SH
continue to be 'CRISIL B+/Stable Issuer Not Cooperating'.
SH is a multispecialty hospital, 52-bed hospital, commenced in May
2017 by Dr. Sagar Patel in Vadodara, Gujarat. The firm's first year
of operation is fiscal 2018.
=========
J A P A N
=========
EAST JAPAN: Egan-Jones Keeps BB Senior Unsecured Ratings
--------------------------------------------------------
Egan-Jones Ratings Company on February 10, 2022, maintained the
'BB' foreign currency and local currency senior unsecured ratings
on debt issued by East Japan Railway Company.
Headquartered in Shibuya City, Tokyo, Japan, East Japan Railway
Company provides rail transportation services in the Kanto and
Tohoku regions, including Tokyo.
KEISEI ELECTRIC: Egan-Jones Keeps B+ Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company on February 7, 2022, maintained the 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by Keisei Electric Railway Co., Ltd.
Headquartered in Ichikawa, Chiba, Japan, Keisei Electric Railway
Co., Ltd. provides passenger rail and bus transportation services
in the Metropolitan Tokyo and Chiba prefecture areas.
MITSUI OSK: Egan-Jones Hikes Senior Unsecured Ratings to BB
-----------------------------------------------------------
Egan-Jones Ratings Company on February 8, 2022, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Mitsui O.S.K. Lines, Ltd. to BB from BB-.
Headquartered in Minato City, Tokyo, Japan, Mitsui O.S.K. Lines,
Ltd. provides marine transportation, warehousing, and cargo
handling services.
SUMITOMO CHEMICAL: Egan-Jones Keeps BB+ Senior Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company on February 8, 2022, maintained the
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by Sumitomo Chemical Company, Limited.
Headquartered in Chuo City, Tokyo, Japan, Sumitomo Chemical
Company, Limited manufactures chemical products.
TOKYO ELECTRIC: Egan-Jones Keeps BB+ Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company on February 11, 2022, maintained the
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by Tokyo Electric Power Company Holdings,
Incorporated.
Headquartered in Chiyoda City, Tokyo, Japan, Tokyo Electric Power
Company Holdings, Incorporated generates, transmits, and
distributes electricity.
TOSHIBA CORP: CEO Steps Down Over Chaos on Revised Revamp Plan
--------------------------------------------------------------
Bloomberg News reports that Toshiba Corp. chief executive officer
Satoshi Tsunakawa resigned from his post on March 1 in the latest
turbulent move at the Japanese firm which could lead to yet another
review of its plans to split.
He will be replaced on an interim basis by senior executive Taro
Shimada, with the board of directors pledging to monitor his
performance, and suggesting it could appoint an external candidate
instead. Mr. Tsunakawa will remain for now as chair of the board of
the directors, the report says.
While Toshiba reiterated that the board still views the plan into
two companies as its best option, earlier media reports indicated
the new management could review the controversial proposal, which
Mr. Tsunakawa has vociferously supported, Bloomberg relates.
Toshiba last month scrapped its plan to divide into three listed
companies and switched to a proposal to split into two instead,
recalls Bloomberg. While Toshiba did not give a reason for the
management change, Mr. Tsunakawa resigned to take responsibility
for the chaos caused by the abrupt alteration of its reorganization
plans, TV Tokyo reported.
Activist investors have called for the company to review other
options, including a potential sale to private equity. But
management have been reluctant to pursue that option, with Mr.
Tsunakawa saying in an interview last week that going private was
full of risks that would be "impossible" to ignore.
"The stock move shows Toshiba's stakeholders don't like the idea of
splitting the company, whether it's two or three," Ace Research
Institute Hideki Yasuda said, notes Bloomberg. "The market is
pricing in that the chance of Toshiba going private has
increased."
Investors have been cool on both proposals to split, with shares
still trading below the level before the first split proposal was
unveiled last year. 3D Investment Partners, the Japanese company's
second-largest shareholder, has called on the company to reopen
negotiations with private equity firms which some see as the key to
unlocking its value.
Nikkei BP reported last week that the firm received an early
takeover offer from Blackstone, which was strenuously denied by
both sides, Bloomberg relays.
Mr. Tsunakawa had voiced public opposition to a privatisation. In
the interview with Bloomberg Television, he said that Toshiba would
lose orders from utilities and local governments if it went
private, and would be forced to sell sensitive technology in areas
such as nuclear, defense and cybersecurity.
Senior executive Mamoru Hatazawa will also step down along with Mr.
Tsunakawa, the report notes.
Toshiba plans to hold a shareholder meeting for March 24 to gauge
investor support for its revised plan to separate into two
entities, Bloomberg notes.
Mr. Shimada, 55, was hired from Siemens to lead Toshiba's digital
strategy in 2018. He was personally approached to join the company
by Tsunakawa's predecessor, Nobuaki Kurumatani, who had formerly
worked at private equity firm CVC Capital Partners.
About Toshiba Corp.
Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/--
manufactures and markets electrical and electronic products. The
Company's products include digital products such as PCs and
televisions, NAND flash memories, and system LSIs (large-scale
integrated), as well as social infrastructures such as power
generators, medical equipment, and home appliances.
As reported in the Troubled Company Reporter-Asia Pacific on Nov.
18, 2021, S&P Global Ratings has placed its 'BB+' long-term issuer
credit rating on Toshiba Corp. on CreditWatch with negative
implications. At the same time, S&P affirmed its 'B' short-term
issuer credit and commercial paper program ratings.
=====================
N E W Z E A L A N D
=====================
A.G. WARE: Creditors Unlikely to Get Money Back, Liquidators Say
----------------------------------------------------------------
Otago Daily Times reports that creditors of Southern City Taxis, a
Dunedin taxi company, have claimed they are owed nearly NZD700,000
and liquidators said it is unlikely many will get their money.
In July last year, A.G. Ware Ltd, which traded as Southern City
Taxis, was liquidated in the High Court at Dunedin on application
of Inland Revenue for overdue GST and employer taxes as well as
associated penalties and interest.
KPMG's Elizabeth Keene and Vivian Fatupaito, who were appointed
joint liquidators, have released the company's second liquidation
report, according to ODT.
The company's preferential unsecured creditors - those deemed a
priority - had claimed they were owed about NZD283,346, but it was
unknown yet whether they would get any money.
Non-preferential unsecured creditors claimed they were owned about
NZD391,000 and it was unlikely they would get their money, the
report said, ODT discloses.
In the six-month period since the last report, one of the company's
vehicles was sold to someone who had been interested in buying it
prior to the liquidation.
ODT says the liquidators then sold the remaining vehicles, which
were subject to an ANZ loan, for NZD16,800 at an auction.
As the liquidators' costs in dealing with the assets exceeded the
amount realised from the auction, the bank did not get any of its
money.
The sale of the company's assets was delayed and negatively
affected by the Level 4 lockdown in August last year, the report,
as cited by ODT, said.
Southern City Taxis' leased equipment, subject to Finance Now Ltd
and SmartMove Ltd loans, was recovered by agents before the sale of
the company's vehicles, ODT relays.
ODT says liquidators were in the process of recovering payments
from the company's debtors, which was expected to be concluded over
the next two or three months.
To date, the liquidators have incurred fees of about NZD58,400.
It was not possible to provide an estimated date for the completion
of the liquidation, the report said.
FLOWER WIZARDS: Court to Hear Wind-Up Petition on March 10
----------------------------------------------------------
A petition to wind up the operations of Flower Wizards Limited will
be heard before the High Court at Christchurch on March 10, 2022,
at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Dec. 8, 2021.
The Petitioner's solicitors are:
Gabrielle McGillivray
Inland Revenue, Legal Services
PO Box 1782
Christchurch 8140
HSK TRADING: Creditors' Proofs of Debt Due April 24
---------------------------------------------------
Creditors of HSK Trading Limited are required to file their proofs
of debt by April 24, 2022, to be included in the company's dividend
distribution.
Christopher Carey McCullagh and Stephen Mark Lawrence of PKF
Corporate Recovery were appointed joint and several liquidators of
the company by an order of the High Court at Auckland on Feb. 25,
2022.
The company's liquidators can be reached at:
PKF Corporate Recovery & Insolvency (Auckland) Limited
PO Box 3678
Auckland 1140
LIQUIDSTRIP LIMITED: Creditors' Proofs of Debt Due March 30
-----------------------------------------------------------
Creditors of Liquidstrip Limited are required to file their proofs
of debt by March 30, 2022, to be included in the company's dividend
distribution.
Damien Grant and Greg Sherriff of Waterstone Insolvency were
appointed liquidators of the company on
Feb. 17, 2022.
The company's liquidators can be reached at:
Waterstone Insolvency
PO Box 352
Auckland 1140
MANUKAU FAMILY: Court to Hear Wind-Up Petition on March 13
----------------------------------------------------------
A petition to wind up the operations of Manukau Family Doctors
Limited will be heard before the High Court at Auckland on March
13, 2022, at 10:00 a.m.
Body Corporate 337049 filed the petition against the company on
Jan. 28, 2022.
The Petitioner's solicitor is:
Rhonda Margot Graham
Morgan Coakle, Solicitors
Level 9, The AIG Building
41 Shortland Street, Auckland
Q CARD TRUST: Fitch Affirms B Rating on 3 Note Classes
------------------------------------------------------
Fitch Ratings has affirmed the ratings on notes issued by The New
Zealand Guardian Trust Company Limited in its capacity as trustee
of Q Card Trust. The transaction, a securitisation of New Zealand
credit card receivables, is an asset-backed note programme
featuring a multiclass structure that purchases eligible
receivables from related entities of Humm Group Limited (hummgroup)
on a revolving basis.
DEBT RATING PRIOR
---- ------ -----
Q Card Trust
A-2019-3 NZFPFD1034R5 LT AAAsf Affirmed AAAsf
A-2021-1 NZFPFD1040R2 LT AAAsf Affirmed AAAsf
A-2021-2 NZFPFD1041R0 LT AAAsf Affirmed AAAsf
A-2021-3 NZFPFD1042R8 LT AAAsf Affirmed AAAsf
A-2021-4 NZFPFD1043R6 LT AAAsf Affirmed AAAsf
B-2018-1 NZFPFD1025R3 LT AAsf Affirmed AAsf
B-2019-1 NZFPFD1031R1 LT AAsf Affirmed AAsf
B-2019-2 NZFPFD1035R2 LT AAsf Affirmed AAsf
C-2018-1 NZFPFD1026R1 LT Asf Affirmed Asf
C-2019-1 NZFPFD1032R9 LT Asf Affirmed Asf
C-2019-2 NZFPFD1036R0 LT Asf Affirmed Asf
D-2017-1 NZFPFD1018R8 LT BBBsf Affirmed BBBsf
D-2018-1 NZFPFD1027R9 LT BBBsf Affirmed BBBsf
D-2019-1 NZFPFD1037R8 LT BBBsf Affirmed BBBsf
E-2017-1 NZFPFD1019R6 LT BBsf Affirmed BBsf
E-2018-1 NZFPFD1028R7 LT BBsf Affirmed BBsf
E-2019-1 NZFPFD1038R6 LT BBsf Affirmed BBsf
F-2017-1 NZFPFD1020R4 LT Bsf Affirmed Bsf
F-2018-1 NZFPFD1029R5 LT Bsf Affirmed Bsf
F-2019-1 NZFPFD1039R4 LT Bsf Affirmed Bsf
VFN LT AAAsf Affirmed AAAsf
Steady State Performance Shifts: Historical performance has been
steady, reflecting stabilised origination volume and outstanding
portfolio balance following falls during 2020. The average 12-month
steady state for gross charge-offs increased by 10bp to 4.1%,
remaining below Fitch's steady state of 4.5%. The rise was
partially contributed an instance of volatility as a result of
receivables previously subject to Covid-19 hardship arrangements
being charged-off together in the one reporting period. The average
12-month steady state falls to 3.9%, 10bp below the level 12 months
prior, excluding the volatile period.
Monthly payment rate (MPR), a measure of how quickly consumers are
paying off their credit-card debt, increased to 11.0% in the last
12 months, from 10.2%. This reflects the portfolio's changing
composition towards a rising portion of open-loop credit cards from
existing closed-loop cards. Yield remains largely unchanged,
increasing slightly to a 12-month average of 20.9%, from 20.7%.
Fitch expects card performance to be supported by recovering
macroeconomic conditions in New Zealand and the country's
management of the Covid-19 pandemic. Fitch forecasts GDP growth of
3.5% in 2022 and 2.9% in 2023 and an unemployment rate of 4.3%,
falling to 4.1% in 2023.
A summary of the steady states and rating stresses is shown below.
These remain unchanged from the last review.
-- Charge-offs: 4.5%
-- MPR: 7.5%
-- Gross yield: 17.00%
-- Purchase rate: 100%
-- Rating Stresses:
-- Ratings: AAAsf / AAsf / Asf / BBBsf / BBsf / Bsf
-- Charge-offs (increase): 4.75x / 4.00x / 3.10x / 2.40x / 1.90x
/ 1.30x
-- MPR (% decrease): 35.00% / 30.00% / 25.00% / 20.00% / 10.00% /
5.00%
-- Gross yield (% decrease): 35.00% / 30.00% / 25.00% / 20.00% /
15.00% / 10.00%
-- Purchase rate (% decrease): 90.00% / 85.00% / 75.00% / 65.00%
/ 55.00% / 45.00%
Some of the outstanding subordinate tranches may be able to support
higher ratings based on the output of Fitch's proprietary cash flow
model. Enhancement levels are set to maintain a constant rating
level per class of issued notes and may provide more than the
minimum enhancement necessary to retain issuance flexibility, since
the credit card programme is set up as a continuous funding
programme and requires that any new issuance or note reductions do
not affect the rating of existing tranches. Therefore, Fitch may
decide not to assign or maintain ratings above the current
outstanding ratings in anticipation of future issuance or
reductions.
The Stable Outlook reflects Fitch's long-term view that the ratings
are not susceptible to negative rating action, due to the strong
level of subordination available at each rating level and support
from New Zealand's strong macroeconomic conditions, which Fitch
expects to continue.
Originator and Servicer Risk Mitigated: Fitch reviewed hummgroup's
servicing capabilities and found that the operations were
comparable with those of other credit card providers in Australia
and New Zealand. Fitch undertook an operational review and found
that the operations of the originator and servicer were comparable
with other consumer receivable lenders.
The key rating drivers listed in the applicable sector criteria,
but not mentioned above, are not material to this rating action.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- A longer pandemic than Fitch expects that leads to material
deterioration in macroeconomic fundamentals and consumers'
financial positions in New Zealand beyond Fitch's baseline
scenario. Credit enhancement ratios cannot fully compensate
for credit losses and cash flow stresses associated with the
assigned ratings, all else being equal.
Downgrade Sensitivity:
-- Fitch evaluated the sensitivity of the ratings to decreased
yields, increased charge-offs and decreased MPRs over the life
of the transaction. The model indicates that note ratings are
sensitive to an increase in defaults and a reduction in MPRs,
with less sensitivity to lower yields.
Factor that could, individually or collectively, lead to positive
rating action/upgrade:
-- An improvement in long-term asset performance, such as
decreased charge-offs, increased MPR or increased portfolio
yield, driven by a sustainable positive change of underlying
asset quality, would contribute to positive revisions of
Fitch's asset assumptions. This could positively affect the
notes' ratings. Increased credit enhancement ratios, which are
able to fully compensate for credit losses and cash flow
stresses commensurate with higher rating scenarios, all else
being equal.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Structured Finance
transactions have a best-case rating upgrade scenario (defined as
the 99th percentile of rating transitions, measured in a positive
direction) of seven notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of seven notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings
are based on historical performance.
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
and the transaction. Fitch has not reviewed the results of any
third-party assessment of the asset portfolio information or
reviewed that origination files as part of its ongoing monitoring.
As part of its ongoing monitoring Fitch reviewed a small targeted
sample of hummgroup's origination files and found the information
contained in the reviewed files to be adequately consistent with
the originator's policies and practices and the other information
provided to the agency about the asset portfolio.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This 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.
RAINBOW SPRINGS: Nature Park to Close Permanently
-------------------------------------------------
Otago Daily Times reports that Rotorua's Rainbow Springs Nature
Park will permanently close.
The owners of the park began consultation on whether it would close
the park last month, and on March 1 confirmed it would, the report
says.
According to ODT, Ngai Tahu Holdings Corporate Services general
manager Jo Allison said the decision was made after a thorough
consultation process with affected staff.
The park was opened as a tourism experience in 1931 and Ngai Tahu
Group had owned it since 2004.
"All options were explored in the context of long-term
sustainability and closure was not an option taken lightly."
While a much-loved attraction for the local community, Ms. Allison
said it also brought with it substantial operating costs which
Ngāi Tahu Tourism has had under consideration for a long time, the
report relays.
Coupled with the current restricted and uncertain climate, it had
become clear the park was not financially viable, she said.
"We evaluated all options including changing the price point,
offering a modified experience, and catering to the domestic market
only - unfortunately, the unique environment of Rainbow Springs
Nature Park has been prohibitive," the report quotes Ms. Allison as
saying.
She said the international market was key to the attraction and
though there had been moves towards fewer restrictions on
international travel, it was not expected tourism levels will be
back to their pre-pandemic levels for years to come.
"We empathise with the nostalgia that the Rotorua community has
with Rainbow Springs, and we are sad that the current restrictions,
high operating costs and ongoing uncertainty, meant that things
were not sustainable for the future."
All wildlife would be rehomed by September.
ODT relates that Ms. Allison said it would focus on supporting
impacted kaimahi (workers) and ensure the welfare of all animals
during the transition period.
"Just as we are looking at the possible transition options for our
kaimahi we will also look to secure the best and safest rehoming
options for all animals affected by the closure of Rainbow
Springs."
It will proactively work with the Zoo and Aquarium Association to
relocate the animals.
The National Kiwi Hatchery, which is also located at Rainbow
Springs, will remain open, the report adds.
It will continue to operate at the site until plans are developed
to move it to the recently reopened Agrodome site.
"We remain committed to providing an engaging, and world-class
attraction to the local community through Agrodome and we have some
very exciting long-term plans there which we will announce in due
course."
THREE SHORTLAND: Creditors' Proofs of Debt Due April 8
------------------------------------------------------
Creditors of Three Shortland Street Limited (trading as Locilato
Shortland Street) are required to file their proofs of debt by
April 8, 2022, to be included in the company's dividend
distribution.
Benjamin Francis and Simon Dalton of Gerry Rea Partners were
appointed liquidators of the company by the High Court at Auckland
on the application of The Jedi Family Trust.
The company's liquidators can be reached at:
Gerry Rea Partners
PO Box 3015
Auckland
=================
S I N G A P O R E
=================
CAMP DEMPSEY: Creditors' Proofs of Debt Due March 25
----------------------------------------------------
Creditors of Camp Dempsey Pte. Ltd, which is in voluntary
liquidation, are required to file their proofs of debt by March 25,
2022, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on Feb. 18, 2022.
The company's liquidators can be reached at:
Leow Quek Shiong
Gary Loh Weng Fatt
Seah Roh Lin
c/o BDO Advisory Pte. Ltd.
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
EZION HOLDINGS: Court Enters Wind-Up Order
------------------------------------------
The High Court of Singapore entered an order on Feb. 18, 2022, to
wind up the operations of Ezion Holdings Limited.
The company's liquidators are:
Ng Kian Kiat
Goh Wee Teck
RSM Corporate Advisory Pte Ltd
8 Wilkie Road, #03-08
Wilkie Edge
Singapore 228095
GREATEARTH CORPORATION: Two of Five BTO Projects Completed
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The Straits Times reports that the wait for some flat owners is
over, with work completed ahead of revised deadlines in two of the
five Build-to-Order (BTO) projects affected by Greatearth
Corporation and Greatearth Construction going bust.
The 782 owners of units in three Housing Board blocks in Senja - in
Senja Ridges and Senja Heights - have begun to receive keys to
their new homes, the report says.
The Straits Times relates that the three other delayed projects -
Sky Vista @ Bukit Batok, Marsiling Grove and West Coast Parkview -
are "progressing well" and "on track to be delivered" by their
amended deadlines, HDB said on Feb. 27.
The completion dates of the five projects had each been delayed by
about three months. Work was passed last year to replacement
contractors after Greatearth said it could no longer fulfil its
obligations, running up a SGD70 million debt despite government
aid, according to the report.
The report notes that HDB's update comes as it continues to work on
BTO projects that have been delayed by the pandemic, during which
the construction sector was badly hit by a Covid-19 outbreak in
dormitories and works were slower due to safe management measures.
Some couples have had to seek interim housing after their weddings
while awaiting their new homes, prompting National Development
Minister Desmond Lee to say last year that the average waiting time
for ongoing BTO flats remains between four and five years - the
same wait pre-pandemic.
According to the report, the two completed projects are a block of
230 units in Senja Ridges, completed by Teambuild Engineering &
Construction, and two blocks with a total of 552 units in Senja
Heights by Newcon Builders.
The completion date of Senja Ridges had been postponed from the
fourth quarter of 2021 to this quarter and work was finished in
January, HDB said.
The two blocks in Senja Heights had been slated to be finished in
the fourth quarter of last year and the first quarter of this year,
but completion was each pushed back by a quarter.
Work wrapped up in December last year and February this year.
The Straits Times adds that HDB said on Feb. 27 that the
replacement contractors have been able to meet their deadlines, or
even finish the flats earlier, due to efforts that have allowed
them to hit the ground running and acquire much-needed supplies and
workers.
After Greatearth went bust last year, HDB provided new contractors
with a list of Greatearth's sub-contractors and material suppliers
so that they could work out arrangements to keep changes to a
minimum.
In both Senja projects, most sub-contractors and suppliers were
retained, HDB said, with the continuity enabling work to resume
much more smoothly.
HDB also worked with partner agencies to bring in more workers,
accelerating progress by up to three weeks.
Some inspections, such as those for light installation, were
conducted virtually, where a worker on-site would take HDB's
engineers around the premises through a video call, although HDB
reiterated that comprehensive physical inspections were still done
to make sure workmanship standards were met.
The three remaining projects are the 257 units of Sky Vista@ Bukit
Batok, with Welltech Construction as the contractor, to be
completed in the fourth quarter of the year; 1,246 units of
Marsiling Grove (with CES Engineering & Construction) in the first
quarter of next year; and 697 units of West Coast Parkview (with
Newcon) in the third quarter of next year.
"Despite the extremely challenging environment brought about by the
pandemic, HDB has been able to catch up and recover from most of
the delays caused by the unfortunate exit of Greatearth," the
report quotes HDB chief executive officer Tan Meng Dui as saying.
"I would like to thank our flat buyers for their patience and
understanding. The remaining three projects are currently
progressing well, with structural works and even some architectural
works already in progress."
About Greatearth
Greatearth Pte Ltd is an integrated building services company based
in Singapore.
As reported in the Troubled Company Reporter-Asia on Sept. 7, 2021,
Greatearth Corporation was wound up - a week after its shock
closure of five Build-To-Order (BTO) project sites that left around
2,900 buyers facing long delays for their homes. According to The
Straits Times, the move is also likely to leave many
sub-contractors in the lurch, with few avenues open to recoup what
are substantial losses for some.
The winding-up process was triggered when Mr. Goh Eng Hwee, the
director of Greatearth Corporation and Greatearth Construction,
filed a statutory declaration of the company's inability to
continue business.
Three related companies - Greatearth, Greatearth Holding and
Universal EC Investments - are also being wound up.
PwC was appointed provisional liquidator on Sept. 3, 2021.
INRI INTERNATIONAL: Court to Hear Wind-Up Petition on March 18
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A petition to wind up the operations of Inri International Pte Ltd
will be heard before the High Court of Singapore on March 18, 2022,
at 10:00 a.m.
Maybank Singapore Limited filed the petition against the company on
Feb. 22, 2022.
The Petitioner's solicitors are:
Tito Isaac & Co LLP
1 North Bridge Road
#30-00 High Street Centre
Singapore 179094
KI BAR: Creditors' Proofs of Debt Due March 25
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Creditors of Ki Bar Pte Ltd, which is in voluntary liquidation, are
required to file their proofs of debt by March 25, 2022, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Feb. 18, 2022.
The company's liquidators can be reached at:
Leow Quek Shiong
Gary Loh Weng Fatt
Seah Roh Lin
c/o BDO Advisory Pte. Ltd.
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
MARMALADE PTE: Creditors' Proofs of Debt Due on March 25
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Creditors of Marmalade Pte Ltd, which is in voluntary liquidation,
are required to file their proofs of debt by March 25, 2022, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Feb. 18, 2022.
The company's liquidators can be reached at:
Leow Quek Shiong
Gary Loh Weng Fatt
Seah Roh Lin
c/o BDO Advisory Pte. Ltd.
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
RHODIUM TRADING: Court to Hear Wind-Up Petition on March 11
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A petition to wind up the operations of Rhodium Trading North
America Corp, Rhodium Resources Usa, Inc., Rhodium International
Trading USA, Inc., and RHL International Trading Pte. Ltd, will be
heard before the High Court of Singapore on March 11, 2022, at
10:00 a.m.
White Oak Trade Finance, LLC filed the petition against the company
on Feb. 17, 2022.
The Petitioner's solicitors are:
M/S Asialegal LLC
10 Collyer Quay
#18-01 Ocean Financial Centre
Singapore 049315
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V I E T N A M
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VIETNAM – RUSSIA JOINT: Moody's Withdraws 'B2' Deposit Ratings
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Moody's Investors Service has withdrawn the following ratings of
Vietnam -- Russia Joint Venture Bank:
Long-term Bank Deposit Ratings of B2
Short-term Bank Deposit Ratings of Not Prime
Long-term Counterparty Risk Ratings of B1
Short-term Counterparty Risk Ratings of Not Prime
Long-term Counterparty Risk Assessment of B1(cr)
Short-term Counterparty Risk Assessment of Not Prime(cr)
Long-term Issuer Ratings of B2
Short-term Issuer Ratings of Not Prime
Baseline Credit Assessment of b2
Adjusted Baseline Credit Assessment of b2
At the time of the withdrawal, the bank's long-term deposit ratings
and issuer ratings carried a stable outlook and the bank's issuer
outlook was also stable.
RATINGS RATIONALE
Moody's has decided to withdraw the ratings for its own business
reasons.
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S U B S C R I P T I O N I N F O R M A T I O N
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