/raid1/www/Hosts/bankrupt/TCRAP_Public/220317.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, March 17, 2022, Vol. 25, No. 49
Headlines
A U S T R A L I A
ALLEYBURWOOD PTY: First Creditors' Meeting Set for March 23
ASME WELDING: First Creditors' Meeting Set for March 23
BRONX INTERNATIONAL: First Creditors' Meeting Set for March 23
BUDDY TECHNOLOGIES: Writes Down Intangible Assets
CONDEV CONSTRUCTION: Calls In Liquidators
HAY QUEENSLAND: Second Creditors' Meeting Set for March 24
NORTH QUEENSLAND EXPORT: Moody's Confirms Ba2 Rating on Sec. Notes
PEPPER PRIME 2022-1: S&P Assigns B(sf) Rating on Class F Notes
PEPPER TRUST 32: S&P Assigns Prelim. B Rating on F Notes
RESIMAC BASTILLE 2021-1NC: S&P Affirms B Rating on F Notes
SONETA PTY: First Creditors' Meeting Set for March 23
C H I N A
CAR INC: S&P Affirms 'B-' Issuer Credit Rating, Outlook Stable
CIFI HOLDINGS: Issued Notes Hit Record Lows
HONG YANG: Fitch Lowers LT Foreign Curr. IDR to 'B', Outlook Neg.
JIAYUAN INT'L: Fitch Cuts Foreign Curr. IDR to 'B', Outlook Neg.
LOGAN GROUP: Fitch Lowers IDRs to CCC on Increased Liquidity Risks
LOGAN GROUP: Moody's Cuts CFR to Caa2 & Alters Outlook to Negative
LOGAN GROUP: S&P Lowers ICR to 'CCC-' on Escalating Nonpayment Risk
RED STAR: Fitch Affirms 'BB' LT Foreign Curr. IDR, Outlook Neg.
SUNAC CHINA: Fitch Lowers IDR to 'B-', On Watch Negative
I N D I A
AARSON MOTORS: CARE Keeps B- Debt Rating in Not Cooperating
ABAN OFFSHORE: CARE Reaffirms D Rating on INR454.37cr LT Loan
ADJOIN BUILT: Insolvency Resolution Process Case Summary
AGRIFEM INDUSTRIES: CARE Lowers Rating on INR4.25cr Loan to B+
AIREN COPPER: Insolvency Resolution Process Case Summary
BALSARA ENGINEERING: Insolvency Resolution Process Case Summary
BARODA AGRO: CARE Keeps D Debt Rating in Not Cooperating
BENGAL, INDIA: Government Heading Towards Bankruptcy
BMS PROJECTS: CARE Lowers Rating on INR5.0cr LT Loan to B-
DAKSHIN ODISHA: CARE Reaffirms D Rating on INR149.41cr LT Loan
DODSAL ENTERPRISES: CARE Lowers Rating on INR105cr Loan to B-
G.R. CABLES LIMITED: Insolvency Resolution Process Case Summary
KANODIA TECHNOPLAST: Insolvency Resolution Process Case Summary
KILBURN ENGINEERING: CARE Withdraws C/A4 Bank Debts Rating
KONARK SYNTHETIC: CARE Keeps D Debt Ratings in Not Cooperating
LAKSHMI COTFAB: CARE Keeps D Debt Rating in Not Cooperating
MACROTECH DEVELOPERS: Moody's Ups CFR to B2, Outlook Remains Pos.
MATA ENERGY: Insolvency Resolution Process Case Summary
MODEX INT'L: Insolvency Resolution Process Case Summary
MUHLENBAU EQUIPMENTS: Insolvency Resolution Process Case Summary
NIKHIL FOOTWEARS: Insolvency Resolution Process Case Summary
ORANGE MEDICARE: Insolvency Resolution Process Case Summary
PALAMOOR PAPER: CRISIL Keeps D Debt Ratings in Not Cooperating
PALLAVA GRANITE: CRISIL Moves B- Debt Ratings to Not Cooperating
PRANAV CONSTRUCTION: Insolvency Resolution Process Case Summary
PUSHPAK COLOUR: CRISIL Keeps B Debt Rating in Not Cooperating
RAAM TWO: CRISIL Keeps B Debt Ratings in Not Cooperating Category
RADHADEVI INDUSTRIES: CRISIL Keeps D Ratings in Not Cooperating
RAMA RICE: CRISIL Keeps B+ Debt Rating in Not Cooperating
RATNAWALI DAIRY: CARE Moves B- Debt Rating to Not Cooperating
RICHA HOMES: Insolvency Resolution Process Case Summary
RUBYKON MANUFACTURING: CRISIL Keeps D Ratings in Not Cooperating
RYTHU DAIRY: CRISIL Keeps B+ Debt Ratings in Not Cooperating
S P INFRA: CARE Moves B+ Debt Rating to Not Cooperating
SESHASAI SPINNING: CARE Reaffirms B+ Rating on INR15.83cr Loan
SHAKTI BREEDING: CRISIL Keeps B Debt Ratings in Not Cooperating
SHANTI AGRO: CRISIL Keeps D Debt Ratings in Not Cooperating
SHIKSHA PRASARINI: CRISIL Keeps B Debt Rating in Not Cooperating
SINDHURA PAPER: Insolvency Resolution Process Case Summary
VENKATA RAJESH: CRISIL Keeps B Debt Ratings in Not Cooperating
VIAAN INDUSTRIES: Insolvency Resolution Process Case Summary
N E W Z E A L A N D
GEVIR LIMITED: Court to Hear Wind-Up Petition on March 23
MINT RENTALS: Court to Hear Wind-Up Petition on May 13
MIRO DEVELOPMENTS: Creditors' Proofs of Debt Due on April 22
VERDEBLU LIMITED: Creditors' Proofs of Debt Due on May 13
Y & Z SUPERMARKET: Creditors' Proofs of Debt Due on April 22
P H I L I P P I N E S
RURAL BANK OF MAHAPLAG: BSP Closes Down Leyte-Based Rural Bank
S I N G A P O R E
ARQIT PTE: First Creditors' Meeting Set for March 31
ECOWISE: Flags Material Uncertainty to Continue as Going Concern
HATTEN LAND: Can Repay MYR206MM Borrowings With Unsold Properties
HONG SHENG: Court Enters Wind-Up Order
HONOS SHIPPING: Creditors' Proofs of Debt Due on April 17
S E SHIP: Court to Hear Wind-Up Petition on March 25
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A U S T R A L I A
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ALLEYBURWOOD PTY: First Creditors' Meeting Set for March 23
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Alleyburwood
Pty Ltd will be held on March 23, 2022, at 9:30 a.m. via virtual
meeting technology.
Christopher Damien Darin of Worrells Solvency was appointed as
administrator of Alleyburwood Pty on March 11, 2022.
ASME WELDING: First Creditors' Meeting Set for March 23
-------------------------------------------------------
A first meeting of the creditors in the proceedings of ASME Welding
Services Pty. Ltd. will be held on March 23, 2022, at 11:00 a.m.
via virtual meeting.
Andrew Peter Fielding of BDO was appointed as administrator of ASME
Welding on March 11, 2022.
BRONX INTERNATIONAL: First Creditors' Meeting Set for March 23
--------------------------------------------------------------
A first meeting of the creditors in the proceedings of Bronx
International will be held on March 23, 2022, at 4:00 p.m. via
virtual facilities.
Michael Brereton and Sean Wengel of William Buck were appointed as
administrators of Bronx International on March 13, 2022.
BUDDY TECHNOLOGIES: Writes Down Intangible Assets
-------------------------------------------------
Australian Securities and Investments Commission (ASIC) said on
March 16 that Buddy Technologies Limited has written down the
intangible assets of its consumer lighting business by AUD44.8
million in its financial report for the half-year ended Dec. 31,
2021. ASIC reviewed Buddy's financial report for the year ended
June 30, 2021.
As part of its financial reporting surveillance program, ASIC
raised questions about Buddy's consumer lighting business, in
particular:
* using optimistic forecasts of revenue growth to value
goodwill (70% for 2022), despite reporting negative revenue
growth in 2021, and
* the disclosure of Buddy's operating segments, where no
goodwill had been allocated to the Consumer Business segment.
Buddy's write down is a result of adopting significantly reduced
forecast revenue growth rates.
Headquartered in Adelaide, Australia, Buddy Technologies Limited
(ASX:BUD) -- https://buddy.com/ -- operates as an IoT and
cloud-based technology company in Australia, North America, Europe,
the Middle East, and Africa. The company operates through
Commercial Business and Consumer Business segments. It offers Buddy
Ohm, a resource monitoring and analytics solution that provides
energy monitoring, reporting, and auditing services for commercial
and industrial customers; and Buddy Managed Services that licenses
Buddy's technology platforms to customers for integration into
their own products. The company also provides Buddy Cloud that
enables access to and storage of data from recreational vehicles,
schools, commercial buildings, or cities; and Parse on Buddy, a
mobile backend as a service built on the BaaS technology. In
addition, it offers smart lighting solutions for homes through
distributors, retailers, and e-commerce platforms under the LIFX
brand. The company was formerly known as Buddy Platform Limited and
changed its name to Buddy Technologies Limited in April 2019.
Buddy Technologies posted three consecutive annual net losses of
AUD12.53 million, AUD45.27 million, and AUD28.12 million, for the
years ended June 29, 2021, 2020 and 2019, respectively.
CONDEV CONSTRUCTION: Calls In Liquidators
-----------------------------------------
myGC reports that Gold Coast construction giant Condev has been
forced to call in liquidators after a plea for a financial lifeline
from developers fell on deaf ears.
The company currently has 13 projects under construction across
southeast Queensland worth AUD500 million, including six
developments on the Gold Coast.
myGC says Condev has been hit by a combination of supply issues,
increased cost of materials, COVID and the recent floods.
According to the report, Founders Steve and Tracey Marais met with
developers on March 14 asking them to help keep the company afloat
by providing AUD25 million in financial aid to finish current
projects.
But the plea was rejected with at least two developers reportedly
cutting ties with Condev shortly after the meeting.
According to myGC, Ms. Marais confirmed the company's downfall in
an email to its 100 staff on Tuesday night [March 15].
"It is with the heaviest heart that we advise that we have not been
able to achieve the outcome from yesterday's meeting with
developers that we'd hoped and the decision to proceed to the
liquidation of Condev Construction is now a matter of course.
"It's heartbreaking to advise that there is no requirement for you
to come to work tomorrow."
"We never dreamed this would be possible but we also never dreamed
the world would be affected by a coronavirus and price hikes that
would put us out of business.
"We wish you all the very best. We love you guys. You've been
family," Ms. Marais wrote.
Condev Construction is a Queensland-based construction company.
Condev's projects include Allegria at Palm Beach, Allure at Chevron
Island, Capital Court at Varsity Lakes, Natura Burleigh Heads,
Brooke Residences at Robina One and Cannes Surfers Paradise.
HAY QUEENSLAND: Second Creditors' Meeting Set for March 24
----------------------------------------------------------
A second meeting of creditors in the proceedings of Hay Queensland
Pty. Ltd. ATF SFJ FAMILY TRUST, trading as Queensland Quality Hay &
Produce, has been set for March 24, 2022, at 10:00 a.m. via virtual
meeting technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by March 23, 2022, at 4:00 p.m.
Geoffrey Trent Hancock of Hamilton Murphy was appointed as
administrator of Hay Queensland on Feb. 20, 2022.
NORTH QUEENSLAND EXPORT: Moody's Confirms Ba2 Rating on Sec. Notes
------------------------------------------------------------------
Moody's Investors Service has confirmed the backed senior secured
rating of North Queensland Export Terminal Pty Ltd's (NQXT) notes
of Ba2.
At the same time, the outlook was changed to negative from rating
under review.
The rating action concludes the review which was initiated on
December 20, 2021.
NQXT is part of an obligor group that has economic ownership of the
Abbot Point Coal Terminal in North Queensland under a 99-year lease
with state-owned lessor, North Queensland Bulk Port Authority.
Abbot Point Port Holdings Pte Limited, Singapore (unrated) is the
ultimate holding company of the obligor group.
The rating confirmation reflects the progress made by NQXT on the
refinancing of the USD500 million 144A/Reg S notes due in December
2022. Moody's understands from NQXT's management that the bonds
will be refinanced via a drawdown on a subordinated shareholder
facility, which is being funded by its sponsor.
The rising uncertainty associated with the refinancing was the
central consideration for the review. Moody's regards NQXT's
development of a refinancing plan as a supporting factor reducing
the risk associated with the refinancing exercise. Such plan also
illustrates the willingness of NQXT's sponsor to support its
investment in the terminal, consistent with its track record.
Notwithstanding the progress made on the refinancing, the negative
outlook reflects the remaining uncertainty around (1) the capacity
of the sponsor to provide the requisite support in a timely manner
given Moody's limited visibility over the sponsor's credit profile,
and (2) the capital structure of the terminal post-refinancing.
Environmental, social and governance factors were an important
consideration in this rating action. Moody's assess the coal mining
and coal terminal sectors as exhibiting very high exposure to
environmental and social risks, with risk factors including
declining demand for coal over time as renewables expand and waste
and pollution rules tighten, and challenges being reported by
certain coal mines and their contractors in Australia in raising
finance and obtaining insurance. Social risks include these
sectors' exposures to political agendas, reflecting the societal
pressure regarding coal's climate impact.
RATINGS RATIONALE
NQXT's Ba2 backed senior secured rating reflects (1) the key role
in the north Queensland coal export chain; (2) take-or-pay
contracts with mining counterparties containing volume protections;
and (3) the ability to recover (socialise) lost revenue if
contracted capacity falls below nameplate capacity, and (4) Moody's
understanding of the refinancing plan in place to repay the
upcoming USD500 million bonds.
These strengths are counterbalanced by (1) the rising exposure to
ESG risks associated with thermal coal-related assets, reflecting
the risk of demand erosion over time in the context of carbon
transition, (2) continuing exposure to refinancing risk, albeit
reduced with Moody's understanding of NQXT's refinancing plan, and
the increasingly reducing appetite of lenders to fund coal-related
issuers, (3) the increasing exposure of the terminal to thermal
coal from the Carmichael mine and predominance of mines owned by
unrated mining companies in its counterparty base, and (4) the
remaining degree of uncertainty around the execution of the
refinancing plan and future capital structure of the terminal.
NQXT's rating is supported by Moody's expectation that operating
conditions for the Queensland coal sector will remain favourable
into 2023, reflecting strong production driven by high prices, as
well as Moody's estimations that the majority of NQXT's coal
volumes comprise metallurgical coal, a commodity that faces less
immediate ESG challenges than thermal coal.
Still, over time NQXT's credit profile will be increasingly subject
to ESG risks as the proportion of thermal coal is likely to grow
with the ramp-up of exports from Carmichael mine, which is being
developed by Bravus Mining and Resources, a wholly owned subsidiary
of Adani Enterprises Limited (unrated). NQXT has reported that
Carmichael commenced limited production in the fourth quarter of
2021, and is scheduled to ramp up to over 9 million tonnes per
annum.
Moody's central scenario is for Carmichael's contribution to amount
to over 25% of NQXT's revenue over the next few years, a
significant exposure.
Moody's understands from NQXT's management that the refinancing of
the USD500 million bonds will be funded by a drawdown on a
subordinated shareholder loan provided by its sponsor.
NQXT's credit metrics will improve to the extent that the proposed
shareholder loan includes equity features. However, the negative
outlook reflects the uncertainty about NQXT's ongoing capital
structure.
Moody's notes the track record of NQXT's sponsor in providing
support to the terminal via cash infusions for refinancing and
funding of legal settlement with over AUD500 million of support in
the past two years. Notwithstanding this, the rating is constrained
by Moody's limited visibility into the sponsor's credit profile and
capacity to provide timely support, particularly given the sizeable
upcoming refinancing task in comparison to previous infusions.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Given the negative outlook, a rating upgrade is unlikely.
The outlook could be stabilized if NQXT executes a refinancing of
the USD500 million bond, and subject to fundamental coal market
conditions remaining supportive.
The ratings could be downgraded if Moody's assesses that NQXT is
unlikely to complete the refinancing in a timely manner.
The principal methodology used in this rating was Generic Project
Finance Methodology published in January 2022.
PEPPER PRIME 2022-1: S&P Assigns B(sf) Rating on Class F Notes
--------------------------------------------------------------
S&P Global Ratings assigned its ratings to eight classes of prime
residential mortgage-backed securities (RMBS) issued by Permanent
Custodians Ltd. as trustee of Pepper Prime 2022-1 Trust. Pepper
Prime 2022-1 Trust is a securitization of prime residential
mortgages originated by Pepper Homeloans Pty Ltd. (Pepper).
The ratings reflect:
-- S&P's view of the credit risk of the underlying collateral
portfolio, including its view that the credit support is sufficient
to withstand the stresses it applies. The credit support for the
rated notes comprises note subordination and excess spread. The
assessment of credit risk takes into account the underwriting
standards and centralized approval process of the seller, Pepper.
-- The availability of an excess spread reserve and
overcollateralization amount, which will be funded by excess spread
to cover potential yield shortfalls, losses and loss
reimbursements; and to repay principal on the notes at various
stages of the transaction's term.
-- The extraordinary expense reserve of A$150,000, funded by
Pepper Money Ltd. on or before closing, available to meet
extraordinary expenses. The reserve will be topped up via excess
spread if drawn.
-- S&P's expectation that the various mechanisms to support
liquidity within the transaction, including a liquidity facility
equal to 1.5% of the outstanding balance of the notes, principal
draws, and the excess spread reserve, are sufficient under its
stress assumptions to ensure timely payment of interest.
-- The legal structure of the trust, which has been established as
a special-purpose entity and meets S&P's criteria for insolvency
remoteness.
S&P understands that the class A1-G notes will be issued under the
Pepper Money Green Bond Framework. Issuance proceeds from this bond
will be used to purchase green mortgages that meet the eligibility
criteria outlined in the Pepper Money Green Bond Framework. S&P
Global Ratings does not consider the issuer's designation of the
notes as "green" in its credit rating analysis.
Ratings Assigned
Pepper Prime 2022-1 Trust
Class A1, A$505 million: AAA (sf)
Class A1-G, A$330 million: AAA (sf)
Class A2, A$109 million: AAA (sf)
Class B, A$17 million: AA (sf)
Class C, A$15 million: A (sf)
Class D, A$10 million: BBB (sf)
Class E, A$6 million: BB (sf)
Class F, A$4 million: B (sf)
Class G, A$4 million: Not rated
PEPPER TRUST 32: S&P Assigns Prelim. B Rating on F Notes
--------------------------------------------------------
S&P Global Ratings assigned its preliminary ratings to eight
classes of nonconforming and prime residential mortgage-backed
securities (RMBS) to be issued by Permanent Custodians Ltd. as
trustee of Pepper Residential Securities Trust No.32. Pepper
Residential Securities Trust No.32 is a securitization of
nonconforming and prime residential mortgages originated by Pepper
Homeloans Pty Ltd.
The preliminary ratings reflect:
-- S&P's view of the credit risk of the underlying collateral
portfolio, including its view that the credit support is sufficient
to withstand the stresses it applies. The credit support for the
rated notes comprises note subordination and excess spread. The
assessment of credit risk takes into account the underwriting
standard and centralized approval process of the seller, Pepper
Homeloans.
-- The availability of a retention amount and amortization amount,
which will all be funded by excess spread, but at various stages of
the transaction's term. They will have separate functions and
timeframes, including reducing the balance of notes outstanding.
-- S&P's expectation that the various mechanisms to support
liquidity within the transaction, including a liquidity facility
equal to 1.5% of the outstanding balance of the notes, principal
draws, and a yield-enhancement reserve--to the extent it is
funded--are sufficient under our stress assumptions to ensure
timely payment of interest.
-- The condition that a minimum margin will be maintained on the
assets.
-- That S&P also has factored into our ratings the legal structure
of the trust, which has been established as a special-purpose
entity and meets our criteria for insolvency remoteness.
Preliminary Ratings Assigned
Pepper Residential Securities Trust No.32
Class A1-s, A$100.0 million: AAA (sf)
Class A1-a, A$275.0 million: AAA (sf)
Class A2, A$65.0 million: AAA (sf)
Class B, A$34.0 million: AA (sf)
Class C, A$9.75 million: A (sf)
Class D, A$6.75 million: BBB (sf)
Class E, A$4.0 million: BB (sf)
Class F, A$3.0 million: B (sf)
Class G, A$2.5 million: Not rated
RESIMAC BASTILLE 2021-1NC: S&P Affirms B Rating on F Notes
----------------------------------------------------------
S&P Global Ratings raised its ratings on seven classes of notes
issued by Perpetual Trustee Co. Ltd. as trustee for RESIMAC
Bastille Trust - RESIMAC Series 2018-1NC and RESIMAC Bastille Trust
- RESIMAC Series 2019-1NC.
At the same time, S&P affirmed its ratings on 15 classes of RESIMAC
Series 2018-1NC, RESIMAC Series 2019-1NC, and RESIMAC Bastille
Trust - RESIMAC Series 2021-1NC notes.
S&P said, "Our review of the transactions followed proposed minor
changes to the liquidity facility agreements for each of the
transactions. The raised ratings reflect our view of the declining
expectation of losses as loan-to-value (LTV) ratios have decreased
across the pools and available credit support to the rated notes
has increased."
As of Dec. 27, 2021, the RESIMAC Series 2018-1NC pool has a current
weighted-average LTV ratio of 65.3%, weighted-average seasoning of
65.2 months, and pool factor of about 39%. The RESIMAC Series
2019-1NC pool has a current weighted-average LTV ratio of 66.3%,
weighted-average seasoning of 53.5 months, and pool factor of about
49%. As of Dec. 29, 2021, the RESIMAC Series 2021-1NC pool has a
current weighted-average LTV ratio of 69%, weighted-average
seasoning of 16.3 months, and pool factor of about 75%.
S&P believes the credit support provided to each class of notes is
sufficient to withstand the stresses we apply at each respective
rating level. For all series, credit support is provided via
subordination from junior notes, lenders' mortgage insurance on a
portion of the loans in the portfolios, and excess spread, if any.
For RESIMAC Series 2018-1NC and RESIMAC Series 2019-1NC, credit
support is also provided via overcollaterlization.
In S&P's view, the various mechanisms to support liquidity within
the transaction, including principal draws and an amortizing
liquidity facility in the case of all series, are sufficient to
ensure timely payment of interest.
For RESIMAC Series 2018-1NC, the transaction benefits from a
retention mechanism, whereby excess spread has been used to pay
down the most junior rated note--in this case, the class E note,
following full repayment of the class F note. The result has been
an effective buildup of overcollateralization. A factor
constraining S&P's class E note rating below model outcomes is the
level of arrears. As of Dec. 27, 2021, 3.4% of the portfolio is
more than 30 days in arrears, with 2.3% of the portfolio more than
90 days in arrears. In addition, about 2.5% of the pool comprises
loans to borrowers in some type of COVID-19 hardship arrangement.
Although such arrangements could include reduced or interest-only
repayments rather than a payment moratorium, S&P views these
borrowers as being more at risk of default than those not affected
by COVID-19.
The RESIMAC Series 2019-1NC transaction also benefits from a
retention mechanism. As of Dec. 27, 2021, excess spread has been
applied to repay A$4.43 million in class F note principal. Factors
constraining our ratings on the class D, class E, and class F notes
below model outcomes include the level of arrears and that 1.9% of
the pool comprises loans to borrowers in COVID-19 hardship
arrangements. As of Dec. 27, 2021, 2.7% of the portfolio is more
than 30 days in arrears, of which 1.4% is more than 90 days in
arrears.
S&P's expectation for RESIMAC Series 2018-1NC and RESIMAC Series
2019-1NC is that credit support provided to the rated notes should
continue to build, despite both transactions permitting pro rata
principal payments subject to certain conditions being met. This is
because the class G notes in both transactions will not receive any
repayments of principal until all the other note classes have been
fully repaid.
For RESIMAC Series 2021-1NC, the transaction continues to perform
well, with a low level of arrears. Available credit support and
cash flows are supportive of the ratings assigned to the notes.
Ratings Raised
RESIMAC Bastille Trust – RESIMAC Series 2018-1NC
Class C: to AAA (sf) from AA (sf)
Class D: to AA (sf) from A (sf)
Class E: to A (sf) from BBB (sf)
RESIMAC Bastille Trust – RESIMAC Series 2019-1NC
Class C: to AAA (sf) from AA (sf)
Class D: to A+ (sf) from A (sf)
Class E: to BBB (sf) from BBB- (sf)
Class F: to BB+ (sf) from BB (sf)
Ratings Affirmed
RESIMAC Bastille Trust – RESIMAC Series 2018-1NC
Class A1: AAA (sf)
Class A2: AAA (sf)
Class AB: AAA (sf)
Class B: AAA (sf)
RESIMAC Bastille Trust – RESIMAC Series 2019-1NC
Class A1: AAA (sf)
Class A2: AAA (sf)
Class AB: AAA (sf)
Class B: AAA (sf)
RESIMAC Bastille Trust – RESIMAC Series 2021-1NC
Class A: AAA (sf)
Class AB: AAA (sf)
Class B: AA (sf)
Class C: A (sf)
Class D: BBB (sf)
Class E: BB (sf)
Class F: B (sf)
SONETA PTY: First Creditors' Meeting Set for March 23
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Soneta Pty
Ltd, formerly T/AS "Soneta Plumbing & Civil", will be held on March
23, 2022, at 11:00 a.m. at the offices of O'Brien Palmer Level 9,
66 Clarence Street, in Sydney, NSW.
Liam Bailey of O'Brien Palmer was appointed as administrator of
Soneta Pty on March 11, 2022.
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C H I N A
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CAR INC: S&P Affirms 'B-' Issuer Credit Rating, Outlook Stable
--------------------------------------------------------------
S&P Global Ratings affirmed its 'B-' long-term issuer credit rating
and 'B-' issue rating on CAR Inc.'s senior unsecured notes.
The stable outlook reflects S&P's view that CAR's operating
performance will improve over the next 12 months, despite high
depreciation costs for about one-third of its car rental fleet.
CAR has sufficient liquidity to meet its May 2022 maturities and
maintain normal operations.
S&P views the company's tender offer for up to US$100 million of
its US$280 million senior unsecured notes due in May 2022 as
opportunistic. CAR has offered to repurchase the notes at 98% to
99% of par value. The transaction will accelerate 35% of the
company's May maturities by little over a month. The time shift for
this US$100 million debt does not substantially change its view of
CAR's tight liquidity position.
Following the repayment in full of its May 2022 notes, the
company's liquidity will be thin at Chinese renminbi (RMB) 400
million-RMB700 million. S&P's forecast CAR will generate about
RMB1.6 billion of funds from operations in 2022. The company's debt
maturities in the second half of 2022 and in 2023 are relatively
modest at RMB700 million-RMB800 million. Its next large bullet
maturity isn't until March 2024 when its US$250 million unsecured
notes are due. This provides a window for CAR's operations to
bounce back and achieve some form of normalcy post COVID-19 and the
company's capital raising activities.
CAR remains heavily reliant on overseas capital markets. About 80%
of the company's debt in its capital structure is in U.S. dollar
denominated notes. The onshore Chinese credit market historically
has been somewhat shy about financing car rental companies. S&P
expects CAR will continue to look to overseas debt capital markets
for a majority of its longer term financing needs. The debt capital
markets are volatile at the moment from active geopolitical
conflicts and the financial distress of Chinese property
developers. Prolonged volatility could add to the pressure on CAR's
liquidity despite the company's ability to sell vehicles to raise
funds.
S&P said, "Our stable outlook reflects our view that CAR's
operating performance will improve over the next 12 months. This is
despite the Borgward brand cars still constituting a significant
portion of the company's rental fleet. However, CAR's liquidity
buffer will remain thin unless it can secure long-term funding.
"We could lower the rating if CAR's liquidity declines further.
This could happen if the company is unable to find suitable
long-term financing over the next 12 months or its operating
performance deteriorates materially with meaningful free operating
cash outflow in 2022.
"We could raise the rating if CAR reduces the proportion of
Borgward cars in its fleet, maintains EBIT interest coverage at
more than 1.1x, and materially increases its liquidity. At the same
time, the company would need to maintain its weighted average debt
maturities above two years."
CIFI HOLDINGS: Issued Notes Hit Record Lows
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Bloomberg News reports that some dollar bonds of higher-rated
Chinese developers were poised for their biggest-ever weekly drops,
amid declines for many risk assets around the world, as ongoing
worries about the property sector spread to stronger builders.
Notes issued by CIFI Holdings Group Co. and Country Garden Holdings
Co. fell at least 16 cents on the dollar last week to hit record
lows, according to Bloomberg-compiled prices, plunging toward 50
cents. For China's junk-rated dollar bonds overall, the average
yield topped 25% for the first time on March 10 in a Bloomberg
index. Prices were poised for a 13th consecutive daily decline on
March 11, a streak not seen since 2018.
Bloomberg relates that the stress has also started pressuring
China's much-larger onshore corporate-bond market, with spreads
reaching their highest levels in at least a year.
Last week's rout is a fresh reminder of how pervasive fallout from
the property sector's credit crunch has gotten for high-yield
offshore bonds, which continue to search for a bottom, the report
says. More than half of such debt from developers is trading below
50 cents on the dollar, according to Bloomberg Intelligence.
About CIFI Holdings
CIFI Holdings (Group) Co. Ltd. is an investment holding company
principally engaged in property businesses. The Company mainly
operates through three segments. Property Development segment is
engaged in the development and sales of office properties,
commercial properties and residential properties in China. Property
Investment segment is engaged in the leasing of investment
properties developed or purchased by the Company for the rental
income and the appreciation of the properties' values. Property
Management, Project Management and Other Property Related Services
segment is engaged in property management and project management in
China.
As reported in the Troubled Company Reporter-Asia Pacific on Jan.
31, 2022, Fitch Ratings has affirmed CIFI Holdings (Group) Co.
Ltd.'s Long-Term Foreign- and Local-Currency Issuer Default Ratings
at 'BB'. The Outlook is Stable. Fitch has removed all the ratings
from Under Criteria Observation (UCO), which they were placed on
Oct. 20, 2021.
The affirmation reflects Fitch's assessment that CIFI's business
and financial profiles remain commensurate with a 'BB' credit
profile. Fitch believes CIFI's above-average financial flexibility
is supportive of the rating despite its higher leverage of 50%
compared with peers' 40%-45%.
The Stable Outlook reflects Fitch's belief that CIFI's leverage
will drop to below 50% in 2022-2023 and the company will still have
access to both onshore and offshore markets to refinance its
maturities in 2022.
HONG YANG: Fitch Lowers LT Foreign Curr. IDR to 'B', Outlook Neg.
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Fitch Ratings has downgraded the Long-Term Foreign-Currency Issuer
Default Ratings (IDRs) of China-based homebuilder Hong Yang Group
Company Limited and its subsidiary, Redsun Properties Group
Limited, to 'B', from 'B+'. The Outlook is Negative.
The downgrade reflects decreasing financial flexibility amid high
capital-market volatility. Fitch believes Redsun has sufficient
liquidity to address its US-dollar bonds due April 2022, but the
group's capital-market access remains limited and Fitch sees
heightened refinancing risk for Redsun's offshore notes, especially
those maturing in 2H22 and in the following year.
KEY RATING DRIVERS
Curtailed Funding Access: Hong Yang and Redsun together have CNY6
billion in capital market maturities due by the end of 2022,
including USD402 million in senior notes due 11 April, USD275
million due in August and USD250 million due in October. Fitch
believes the group has sufficient liquidity to address the bonds
due in April, but refinancing risk is rising as its capital-market
access remains limited.
Alternative Funding Sources: Hong Yang group has commercial
investment-property assets valued at CNY20 billion, which are the
security for CNY6 billion in loans. The company says the group is
seeking to roll over and raise new secured loans to improve its
loan/value ratio from the current level of 29%. In addition,
management said the group's major shareholders will offer liquidity
support when the need arises.
Uncertain Upstreaming of Project-Level Cash: Fitch believes Redsun
is reliant on available cash and cash generation from contracted
sales to repay its near-term debt. However, a large part of
available cash and cash generated is likely to reside at project
companies. Redsun says it can upstream cash from project companies
on a monthly basis to help service holding-company level debt, but
Fitch believes there is uncertainty regarding Chinese homebuilders'
ability to access project-company cash for capital-market debt
repayment.
Short Land-Bank Life: The group's land-bank life of around two
years at end-2020 - defined by saleable land bank at end-2020/gross
floor area sold in 2021 - was shorter than that of many peers.
Fitch believes the group aims to reduce its contracted sales scale
and refocus in its key Yantze River Delta geographical area. This
will allow the group to prioritise debt repayment over land
replenishment amid persistent capital-market weakness, however,
this strategy will keep the group's overall scale at a lower
level.
Similar Standalone Credit Profiles: Fitch rates Hong Yang and
Redsun based on Fitch's Parent and Subsidiary Linkage Rating
Criteria. The companies' IDRs are the same, as Fitch assesses their
Standalone Credit Profiles (SCPs) as being equal. Fitch assesses
Hong Yang's SCP by taking into account its consolidated profile,
including its subsidiary, Redsun. Hong Yang group holds 72% of
Redsun, which represents the group's entire exposure to the China
homebuilding business. The chairman of Redsun is the sole director
of Hong Yang group.
DERIVATION SUMMARY
Fitch estimates that Redsun and Hong Yang could rely on available
cash as at end-2021 and cash generation from operation to cover
short-term repayment needs in 2022. Fitch's assessment of Times
China Holdings Limited's (B+/Negative) liquidity is slightly
stronger. Furthermore, the group's land bank life is shorter than
that of Times China and its attributable sales are likely to
contract further in the medium-term as it prioritises debt
repayment over land-banking. These factors lead to a one-notch
difference in the companies' ratings.
Ronshine China Holdings Limited (B-/Negative) also relies on cash
generation from contracted sales to address short-term maturities,
which are larger than those of Redsun and Hong Yang.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Total contracted sales by gross floor area to increase by 5% a
year in 2021 -2024 (2020: 33%);
-- Contracted average selling price to increase by 8% in 2021, 5%
in 2022 and 3% in 2023-2024 (2020: 10%);
-- Property development gross profit margin of about 21% in 2021-
2024 (2020: 21.3%);
-- Land acquisition cash outflow to account for half of annual
pre-sales proceeds in 2021-2024 (2020: 48%).
KEY RECOVERY RATING ASSUMPTIONS
Fitch's recovery analysis assumes that Hong Yang and Redsun would
be liquidated in a bankruptcy, as they are essentially
asset-trading companies. The nature of homebuilding means the
liquidation-value approach will almost always result in a higher
value than the going-concern approach.
Fitch assumes 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 account
receivables. This treatment is in line with Fitch's Corporates
Recovery Ratings and Instrument Ratings Criteria.
-- Advance rate of 58% applied to net property inventory.
Redsun's inventory consists mainly of completed properties
held for sale, properties under development (PUD) and deposits
and prepayments for land acquisition. Different advance rates
were applied to the various inventory categories to derive a
blended advance rate.
-- Advance rate of 65% applied to completed properties held for
sale. Completed commodity housing units are closer to readily
marketable inventory and Redsun has a historically strong
gross margin of around 20%. As such, Fitch applied a higher
advance rate than under criteria.
-- Advance rate of 55% applied to PUD. PUD are more difficult to
sell than completed projects and are at various stages of
completion. The PUD balance - prior to applying the advance
rate - is net of margin-adjusted customer deposits.
-- Advance rate of 90% applied to deposits and prepayments for
land acquisitions. Similarly to completed commodity housing
units, land held for development is closer to readily
marketable inventory. Redsun's land is mostly located in tier
two and three cities in the Yantze River Delta.
-- Advance rate of 50% (from 60%) applied to property, plant and
equipment, which consists mainly of buildings, the value of
which is insignificant.
-- Advance rate of 60% applied to Redsun's investment properties.
Redsun's investment property portfolio consists mainly of
commercial buildings located in the Yantze River Delta area.
The portfolio has an average rental yield of 4%, in line with
the industry average.
-- Advance rate of 100% applied to Hong Yang's investment
properties, excluding Redsun, based on a high rental yield of
6% and asset location.
-- Advance rate of 50% applied to joint-venture net assets, which
typically include a combination of completed units, PUD and
landbank. The advance rate is in line with the baseline rate
for inventory.
-- Advance rate of 0% applied to excess cash after netting the
amount of note payables and trade payables (construction fee
and retention payables).
The above items exclude the portion from Redsun Services Group Ltd,
the listed property-management arm of Hong Yang group. The recovery
value of Hong Yang's stake in Redsun is based on the going concern
approach.
The allocation of value in the liability waterfall results in
Recovery Rating corresponding to 'RR3' for Redsun's senior
unsecured offshore bonds and 'RR1' for Hong Yang's senior unsecured
bonds. However, the Recovery Rating for senior unsecured debt is
capped at 'RR4', because under Fitch's Country-Specific Treatment
of Recovery Ratings Criteria, China falls into Group D of creditor
friendliness, and instrument ratings of 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 or funding access to address bond
maturities for the rest of 2022;
-- Significant decline in contracted sales or land bank life.
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
Limited Liquidity: Hong Yang had an available cash balance of
CNY15.6 billion as of end-June 2021, compared with short-term debt
of CNY13.0 billion, of which CNY6.2 billion comprised capital
market debt maturities. However, the majority of unrestricted cash
was at the project level and may not be available to repay the
holding company's debt. Meanwhile, Redsun had an available cash
balance of CNY14.0 billion, excluding restricted cash and pledged
deposits, versus short-term borrowings of CNY10.4 billion.
ISSUER PROFILE
Hong Yang is the parent company and owns 72% of Hong Kong-listed
Redsun. Hong Yang's founder started the property development
business in 2001. Hong Yang group, excluding Redsun, has a property
management services company, which was separately listed in Hong
Kong in July 2020, as well as a large retail and wholesale centre
for home decoration material and furniture in Nanjing, located in
Jiangsu province.
Redsun focusses on developing residential properties in Jiangsu
province and has expanded into other regions. It also operates
retail malls, offices and hotels.
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.
JIAYUAN INT'L: Fitch Cuts Foreign Curr. IDR to 'B', Outlook Neg.
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Fitch Ratings has downgraded China-based homebuilder Jiayuan
International Group Limited's Long-Term Foreign-Currency Issuer
Default Rating (IDR) to 'B', from 'B+'. The Outlook is Negative.
Fitch has also downgraded Jiayuan's senior unsecured rating to 'B',
from 'B+', with a Recovery Rating of 'RR4'.
The downgrade reflects Jiayuan's weaker business profile following
continued deterioration in sales and an uncertain recovery. The
Negative Outlook is based on decreasing financial flexibility amid
high capital-market volatility. Fitch sees heightened refinancing
risk for Jiayuan's offshore notes, especially those maturing in
October 2022 and in the following year, if there is no improvement
in capital market access.
KEY RATING DRIVERS
Weaker Business Profile: Jiayuan's smaller scale and higher
exposure to lower-tier cities than peers limit its operational
flexibility and constrains its ratings. The homebuilder's total
contracted sales plunged by 39% yoy in 2M22 and Fitch estimates
that sales dropped by 25%-30% in 2H21, if excluding the impact from
the acquisition of its Qingdao-based project. Jiayuan's projects
are mainly located in the Yangtze River Delta, where the decline in
home sales was less severe than in other regions. However, a sales
recovery remains uncertain amid the decreased buyer confidence in
the market.
Deteriorating Liquidity: Fitch believes the company may not be able
to access the capital market in the short-term and expect it to
rely on cash on hand and internal cash flow to address upcoming
maturities in 2022. Jiayuan estimates that it had over CNY3 billion
of unrestricted cash that was available for repaying debt at the
holding company as of end-2021, including CNY2 billion onshore and
USD60 million-70 million offshore at the holding company plus
CNY700 million-1.0 billion at the project level.
Jiayuan has offshore notes of USD127 million due in March, USD103
million due in May and USD200 million due in October. It also
expects to repay a trust loan and onshore asset-based securities
totaling CNY357 million in 2022. Jiayuan's available cash at
end-2021 was just sufficient to cover the 2022 repayments, leaving
a limited liquidity buffer for future obligations.
Additional Liquidity Sources: Jiayuan is in process of obtaining
secured loans against two investment properties, one in Hefei, the
capital of Anhui province, and one in Yangzhou, located in Jiangsu
province. Execution risk still remains, although Jiayuan said it
has reached some agreement with potential investors for the Hefei
project.
Positive Operating Cash Flow: Jiayuan expects sellable resources of
CNY60 billion and a construction payment of CNY9 billion in 2022.
Fitch forecasts that Jiayuan will generate slightly positive net
operating cash inflow after operating costs - including
construction, selling, general and administrative expenses as well
as tax and interest - based on Fitch's assumption of a 45%
sell-through rate and a 75% cash collection rate. However,
performance could be weaker if there is no recovery in homebuyers'
confidence.
Sister Company Reliant on Onshore Issuance: Holding company cash at
Jiayuan's sister company, Jiayuan Chuangsheng Holding Group Co.,
Ltd. (JYCS), may be insufficient to fully cover its capital-market
debt maturities of CNY1.9 billion and trust loans of CNY254 million
in 2022. JYCS is in the process of registering a medium-term note
programme with the National Association of Financial Market
Institutional Investors, after which it will be allowed to issue
the bonds. JYCS says it has secured investors for the first batch
and expects to complete the registration and issuance in April.
JYCS's refinancing relies on the new issuance and Fitch may take
negative rating action on Jiayuan if its sister company fails to
issue, as this is likely to limit onshore financing for both
companies.
DERIVATION SUMMARY
Hong Yang Group Company Limited (B/Negative) is Jiayuan's closest
peer. Hong Yang has larger scale, with estimated attributable
contracted sales of CNY40 billion-45 billion in 2021, versus
Jiayuan's around CNY30 billion. Both companies faced similar sales
declines in 2M22 at 40%. They are also both focused on the Yangtze
River Delta and anchored in Jiangsu province, with some
diversification in the Pearl River Delta. Hong Yang has a shorter
land bank life of two years against Jiayuan's average of three
years, but this is mitigated by Hong Yang's better quality, as
evident by a higher average selling price of CNY13,000-14,000 per
square metre against Jiayuan's CNY11,000.
Fitch thinks the liquidity profiles of Hong Yang and its
subsidiary, Redsun Properties Group Limited (B/Negative), are
slightly weaker than that of Jiayuan, as the peers' available cash
for debt repayment at end-2021 could not fully cover debt
maturities to be repaid in 2022. Fitch believes there is increasing
uncertainty regarding Redsun's October 2022 and April 2023 offshore
bonds should there be no recovery in homebuyer demand and
refinancing market conditions.
Fitch estimates that Jiayuan's available cash as at end-2021 would
just cover its short-term repayment needs in 2022, similarly to
Fitch's assessment of Times China Holdings Limited (B+/Negative).
This explains Fitch's Negative Outlook on both companies. However,
Times China's attributable sales are more than double that of
Jiayuan, which Fitch believes leaves more operational flexibility
and leads to a one-notch difference in the companies' ratings.
Fitch's estimate of available holding-company cash at Radiance
Group Co., Ltd. (B+/Stable) and Hopson Development Holdings Limited
(B+/Stable) at end-2021 is sufficient to cover repayment needs in
2022. In addition, both companies have limited capital-market debt
due or puttable in 2023. In addition, Jiayuan's attributable sales
are one third of those of Radiance, while Hopson's scale is
slightly larger and it has better land-bank quality, with a
concentration in tier one and strong tier two cities.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Cash collection rate of 75% in 2021, given tighter mortgage
policies in 2H21 (2020: 76%);
-- Land premium representing around 40% of sales in 2021, as
guided by management (2020: 60%);
-- Construction expenditure representing 40% of sales receipts
during 2021-2022 (2020: 40%);
-- Average funding cost of 9.0% for new borrowings during 2021-
2022 (2020: 9.5% for new borrowings).
KEY RECOVERY RATING ASSUMPTIONS
Fitch's recovery analysis assumes that Jiayuan would be liquidated
in a bankruptcy, because it is essentially an asset-trading
company. The nature of homebuilding means the liquidation-value
approach will almost always result in a higher value than the
going-concern approach.
Fitch assumes 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
processes conducted during bankruptcy or insolvency proceedings and
distributed to creditors.
Fitch applied an advance rate of:
-- 80% to account receivables, raised from 70%, in line with
Fitch's Corporates Recovery Ratings and Instrument Ratings
Criteria. As typical to China's homebuilding industry, account
receivables constitute a small portion of Jiayuan's total
assets.
-- 62% to net property inventory. Jiayuan's inventory consists
mainly of completed properties held for sale, properties under
development (PUD) and deposits and prepayments for land
acquisitions. Different advance rates were applied to the
various inventory categories to derive a blended advance rate.
-- 70% to completed properties held for sale. Completed
commodity-housing units are closer to readily marketable
inventory and typically have high recovery values. Jiayuan has
historically recorded a strong gross margin of around 30%, but
Fitch expects that to trend down towards 25%.
-- 55% to PUD. PUDs are more difficult to sell than completed
projects and are at various stages of completion. The PUD
balance - prior to applying the advance rate - is net of
margin-adjusted customer deposits.
-- 90% to deposits and prepayments for land acquisitions. Land
held for development is closer to readily marketable
inventory, similarly to completed commodity-housing units.
Jiayuan's land is mostly located in the Yantze River Delta and
Fitch has therefore applied a higher advance rate than the
typical 50% mentioned in the criteria.
-- 50% to property, plant and equipment, lowered from 60%. This
consists mainly of buildings of insignificant value.
-- 40% to investment properties. Jiayuan's investment property
portfolio consists mainly of commercial buildings located in
the Yangtze River Delta area. However, the portfolio has an
average rental yield of 2.5%, which is below the industry
average. Fitch considered the 40% advance rate as appropriate,
as the implied rental yield on the liquidation value for the
investment-property portfolio would improve to 5%.
-- 50% to joint-venture net assets, in line with the baseline
advance rate for inventory. Joint venture assets typically
include a combination of completed units, PUD and landbank.
-- 0% to excess cash after netting the amount of note payables
and trade payables (construction fees and retention payables).
Fitch does not assume available cash in excess of outstanding
trade payables would be available for other debt servicing
purposes and therefore the advance rate is 0%.
The allocation of value in the liability waterfall results in
Recovery Rating corresponding to 'RR1' for the senior unsecured
offshore bonds. However, the recovery rating is capped at 'RR4' due
to the jurisdiction cap applied to China.
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 or funding access for Jiayuan or
JYCS;
-- Significant decline in contracted sales or cash collection;
-- Sign of weaker corporate governance practices.
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
Deteriorating Liquidity: Available cash for repaying debt at the
holding company at end-2021 may just cover short-term repayment
needs in 2022. Fitch thinks it is unlikely that the company can
access the capital market given the large discount on its bond
trading price. This leaves Jiayuan reliant on cash on hand and
operating cash to make repayments, which will deplete its available
cash balance and reduce its liquidity buffer. The company is
seeking new secured loans against investment properties, but these
are still subject to execution risk.
ISSUER PROFILE
Jiayuan is a small- to mid-sized property developer focusing on
China's tier two and three cities as well as satellite cities in
the Yangtze River Delta. The company listed on the Hong Kong Stock
Exchange in 2016.
ESG CONSIDERATIONS
Jiayuan has an ESG Relevance Score of '4' for Group Structure due
to large related-party transactions. The company settled its
related-party transactions mainly with non-cash payments and they
appear fairly valued, but there is potential for further such
transactions. This has a negative impact on the credit profile, and
is relevant to the rating in conjunction with other factors.
Jiayuan has an ESG Relevance Score of '4' for Governance Structure
due to its concentrated shareholding. The largest shareholder owns
74.93% of the company, which has a negative impact on the credit
profile, and is relevant to the rating 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.
LOGAN GROUP: Fitch Lowers IDRs to CCC on Increased Liquidity Risks
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Fitch Ratings has downgraded China-based homebuilder Logan Group
Company Limited's Long-Term Foreign- and Local-Currency Issuer
Default Ratings (IDRs) to 'CCC', from 'B+'. Fitch has also
downgraded the senior unsecured rating and the rating on Logan's
outstanding US-dollar senior notes to 'CCC', from 'B+', maintaining
a Recovery Rating 'RR4'. The rating on Logan's subordinated
perpetual capital securities has been downgraded to 'CC', from
'B-', maintaining a Recovery Rating of 'RR6'. All ratings removed
from Rating Watch Negative.
The downgrade is driven by Logan's low margin of safety in its
liquidity and increasing refinancing risks. Negative news flow has
continued to affect market confidence in the company, and Fitch
believes it is reliant on alternative funding sources, such as
asset disposals, for debt repayment. Logan has significant
capital-market debt that will mature or turn puttable in the next
nine months.
Logan has not provided further information to Fitch beyond its
public announcements.
KEY RATING DRIVERS
Low Margin of Safety: Logan's liquidity appears to be weakening.
News reports say that Logan plans to extend the maturities of two
onshore bonds with total principal of CNY3.5 billion, which are
puttable in March. This signals further deterioration in liquidity,
as Logan has trouble meeting immediate debt maturities and may also
extend upcoming onshore bond maturities. Logan has not confirmed or
denied the reports. Negative news flow about the company has
diminished investor confidence and led to a further decline in its
bond prices, which weakens Logan's access to funding.
Significant Debt Maturities: Logan faces rising refinancing risk,
as it has CNY13 billion in capital-market debt maturing or turning
puttable in 2022. Of this, CNY5.7 billion is onshore bonds due or
puttable from March to May this year. In addition, it may now be
difficult for Logan to refinance some of its trust and development
loans. Logan had available cash at the holding company level of
CNY5 billion at end-February 2022, but Fitch believes the cash for
debt repayment has since fallen significantly.
Asset Disposals: Logan previously provided plans to improve
liquidity through a number of asset disposals, but these are likely
to take time and are subject to execution risks. Completed asset
disposals so far have not been sufficient to improve its liquidity
buffer.
Declining Sales: Fitch expects softening sentiment and market
confidence to continue to affect the sales collection and liquidity
of Chinese property developers in 2022, including Logan. Logan's
attributable contracted sales fell by 44% yoy in January 2022,
after a 9% yoy increase in December 2021 and 5% yoy fall in
November 2021. Its attributable contracted sales totalled CNY140
billion in 2021, up by 16% from 2020.
ESG - Governance: Logan has an ESG Relevance Score of '4' for
financial transparency, revised down from '5'. Logan had previously
failed to disclose the existence of an off-balance-sheet private
debt arrangement with an unrelated third party. However, the rating
downgrade is driven by Logan's poor liquidity, rather than its
off-balance-sheet private debt, which has a negative impact on the
credit profile, and is relevant to the ratings in conjunction with
other factors.
DERIVATION SUMMARY
Logan's ratings reflect decreasing margin of safety in its
liquidity amid negative market sentiment. It is reliant on asset
disposals and extending some short-term maturities to improve
liquidity.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Contracted sales to decline in 2022;
-- Minimal land acquisitions.
KEY RECOVERY RATING ASSUMPTIONS
-- The recovery analysis assumes that Logan would be liquidated
in a bankruptcy because it is essentially an asset-trading
company.
-- Fitch has assumed a 10% administrative claim in line with its
criteria.
-- Given the nature of homebuilding, the liquidation value
approach always results in a much higher value than the going-
concern approach.
Liquidation Approach
The liquidation estimate reflects Fitch's view of the value of
balance sheet assets that can be realised in sale or liquidation
processes conducted during a bankruptcy or insolvency proceeding
and distributed to creditors.
-- 80% advance rate to accounts receivable in line with our
criteria.
-- 50% advance rate to investment properties.
-- 50% advance rate to property, plant and equipment as it mostly
consists of assets under construction.
-- 63% advance rate to net inventory, which mainly consists of
completed properties held for sale, properties under
development (PUD) and deposits/prepayments for land
acquisitions. Different advance rates were applied to these
different inventory categories to derive the blended advance
rate for net inventory.
-- 70% advance rate to completed properties held for sale, which
are closer to readily marketable inventory. Logan's
profitability has been higher compared to peers' in recent
years in terms of gross margin at 30%-35%. As such, an advance
rate of 70% was applied.
-- 50% advance rate to PUD. PUD are more difficult to sell than
completed properties. The PUD balance - prior to applying the
advance rate - is net of margin adjusted customer deposits.
-- 90% advance rate to deposits and prepayments for land
acquisitions. Land held for development is more readily
transferrable provided the sites are located well. More than
50% of Logan's land is in Tier 1-2 cities in China. As such, a
higher advance rate than the typical 50% mentioned in the
criteria was considered.
-- 50% advance rate to JV net assets, which typically include
completed units, PUD and land. The advance rate is in line
with the baseline advance rate for inventories.
-- 0% advance rate to excess cash. Chinese homebuilders'
available cash, including pre-sales regulated cash, are
typically prioritised for project completion, including
payment for trade payables. Net payables (trade payables –
available cash) are included in the debt waterfall ahead of
secured debt, but Fitch does not assume available cash in
excess of outstanding trade payables would be available for
other debt servicing purposes and therefore the advance rate
for excess cash is 0%.
The allocation of value in the liability waterfall results in
recovery corresponding to 'RR3' for the senior unsecured offshore
bonds. However, the Recovery Rating is capped at 'RR4' because
under Fitch's Country-Specific Treatment of Recovery Ratings
Criteria, China falls into Group D of creditor friendliness, and
instrument ratings of issuers with assets in the group are subject
to a soft cap at the issuer's Issuer Default Rating and Recovery
Rating of 'RR4'. The Recovery Rating on the subordinated perpetual
capital securities is maintained at 'RR6'.
RATING SENSITIVITIES
Factor that could, individually or collectively, lead to positive
rating action/upgrade:
-- Sustained improvement in liquidity, funding access and
contracted sales.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Failure to address upcoming capital-market debt maturities;
-- Deterioration in liquidity and funding access;
-- Announcement of a debt exchange offer that Fitch classifies as
a distressed debt exchange.
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
Decreasing Margin of Safety: Fitch believes Logan faces rising
refinancing risk, as it has CNY13 billion in capital-market debt
maturities, including bonds turning puttable, in 2022. It has
CNY5.7 billion of onshore bonds that are due or puttable from March
to May this year. However, its cash at the holding company level
was only CNY5 billion at end-February 2022, and Fitch believes this
cash position may deteriorate further.
ISSUER PROFILE
Logan is a mid-sized Chinese property developer with a strong base
in the Greater Bay Area. The majority of Logan's near-term land
bank in 2021 was in the area.
ESG CONSIDERATIONS
Logan's ESG Relevance Score for Financial Transparency has been
revised to '4', from '5'. Logan had previously failed to disclose
the existence of an off-balance-sheet private debt arrangement with
an unrelated third party, which has a negative impact on the credit
profile.
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.
LOGAN GROUP: Moody's Cuts CFR to Caa2 & Alters Outlook to Negative
------------------------------------------------------------------
Moody's Investors Service has downgraded Logan Group Company
Limited's corporate family rating to Caa2 from B2, and its senior
unsecured ratings to Caa3 from B3.
At the same time, Moody's has changed the outlook to negative from
ratings under review.
This concludes the most recent rating review of Logan's ratings
initiated on March 7, 2022.
"The rating downgrade reflects the company's heightened refinancing
and default risks because of its weakened contracted sales,
deteriorated funding access and sizable debt maturities over the
next 12 months," says Cedric Lai, a Moody's Vice President and
Senior Analyst.
Logan's funding access has materially weakened, following weakened
investors' and creditors' confidence amid continued negative news
on the company's financial position.
"The negative outlook reflects the uncertainty over the company's
ability to address all its near-term debt maturities amid
challenging funding conditions," adds Lai.
RATINGS RATIONALE
Logan has large debt maturities coming due or puttable by the end
of 2022 at the holding company level, including RMB9.8 billion of
onshore (including puttable) and USD300 million of offshore bonds.
Moody's estimates that the company will still face a liquidity gap
considering its sizable debt maturity, despite its asset disposal
plan for its debt repayment.
Moody's expects a significant part of Logan's cash to be held at
the project level to be used for project-level debt repayment and
construction expenses. As a result, Logan will not have sufficient
cash at the holding company level to service its maturing debt,
absent any new fundraising activities amid the tight funding
environment and weak investor confidence. The risk of default or
debt restructuring has increased.
Moody's forecasts that Logan's contracted sales will decline
significantly over the next 6-12 months, driven by weak homebuyer
confidence and diminishing saleable resources. This will weaken its
operating cash flow, and in turn, its liquidity. Logan's operating
scale will also shrink if further asset disposals occur. Logan's
contracted sales fell 44% and 65% in January 2022 and February
2022, respectively, from the same periods a year ago. These levels
of sales decline are weaker than the industry average.
Logan's Caa3 senior unsecured debt rating is one notch lower than
the CFR due to structural subordination risk. The majority of
Logan's claims are at its operating subsidiaries and have priority
over claims at the holding company in a liquidation scenario. In
addition, the holding company lacks significant mitigating factors
for structural subordination. Consequently, the expected recovery
rate for claims at the holding company will be lower.
In terms of environmental, social and governance (ESG) factors,
Moody's has considered the company's concentrated ownership in its
controlling shareholder, Mr. Kei Hoi Pang, who held a 61.6% stake
in the company as of June 30, 2021. Logan's inadequate internal
control over certain contingent liabilities also raises Moody's
concerns about the company's governance practices.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade is unlikely, given the negative outlook.
However, Moody's could return the outlook to stable if Logan
improves its liquidity substantially.
On the other hand, Moody's could downgrade the ratings if Logan
defaults on its debt repayment obligations or its liquidity
deteriorates further.
The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in January 2018.
Established in 1996, Logan Group Company Limited is a property
developer based in Shenzhen. The company focuses mainly on
residential projects in Shenzhen, Shantou, Nanning and Huizhou.
Logan listed on the Hong Kong Stock Exchange in December 2013. As
of the end of June 2021, its land bank totaled 85.6 million square
meters in gross floor area in several cities across China,
including Shenzhen; Shantou; Nanning; Hong Kong SAR, China; and
other Greater Bay Area cities, as well as Singapore.
LOGAN GROUP: S&P Lowers ICR to 'CCC-' on Escalating Nonpayment Risk
-------------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Logan Group Co. Ltd. to 'CCC-' from 'B-'. S&P also lowered its
long-term issue rating on the U.S. dollar-denominated notes that
the company guarantees to 'CC' from 'CCC+'. All the ratings were
taken off CreditWatch, where they were placed with negative
implications on March 8, 2022.
The negative outlook reflects S&P's view that Logan faces rising
nonpayment risk or an increasing chance for a de facto debt
restructuring.
S&P said, "We believe restructuring of Logan's onshore debt is
likely. The company faces large debt maturities and, considering
its low accessible cash, repayment pressure is huge. Under this
situation, we believe the company will need to negotiate with
creditors to discuss repayment terms and potential maturity
extensions, even just as one of the options, for its onshore
bonds." Logan has onshore debt totaling over Chinese renminbi (RMB)
3.3 billion due March 19, 2022, and March 22, 2022. The company
still has substantial bond and syndicated loan maturities due in
2022, amounting to RMB11.4 billion onshore and RMB3.9 billion
offshore, excluding its private placement notes (PPNs). The risk of
a de facto debt restructuring is rising.
Logan is potentially facing debt acceleration, including its PPNs,
complicating their imminent repayment.Contrary to our previous view
that Logan has already made arrangement for the repayment of some
PPNs that are maturing imminently, the situation appears to have
worsened drastically in a short time. S&P believes Logan now has to
manage its PPNs without prioritization, irrespective of maturity
date. As such, the nonpayment risk for the imminently maturing PPNs
is rapidly rising as well. Although there is no confirmation from
the company, a possible explanation for the worsening situation is
that the PPNs totaling about US$1 billion guaranteed by Logan may
be accelerated for repayment, making it unfeasible to just repay
the maturing ones first. S&P previously believed Logan had a
reasonable chance of persuading PPN holders not to ask for
acceleration. In addition, some financial institutions are also
requesting early repayment from Logan.
The company's liquidity has depleted significantly because of
closed funding channels and significant cash restrictions. Banks
have also paused the approval and drawdown of loans. In addition,
capital market access for Logan remains closed. Together with sales
and cash collection slowdown, the company's sources of liquidity
are minimal. On top of the bond and syndicated loan maturities,
Logan has other significant short-term debts, mainly project loans
of about RMB14 billion due in 2022. Moreover, a likely acceleration
in Logan's debt will add additional pressure to the company's weak
liquidity. S&P believes Logan's accessible cash balance materially
falls short of its short-term maturities.
The amount and timing of funding from an asset pledge and disposal
are crucial. Logan is selling one of its projects in Shantou to
China Overseas Grand Oceans Group Ltd. for about RMB1 billion. The
company also made some progress with its offshore project
financings. However, due to the size of short-term debt maturities,
significantly more material asset pledges and disposals in a timely
manner are needed to generate sufficient liquidity boost, which is
getting increasingly difficult to achieve, in S&P's view.
The negative outlook indicates Logan's deficient liquidity is
leading to high nonpayment risk. In S&P's view, a substantial
amount of assets need to be pledged or disposed for funding. Or
Logan's banking relationship needs to be partly restored to improve
the company's repayment ability, for which both scale and timing
are under great pressure.
S&P said, "We may lower the rating if we view default as a virtual
certainty or the company misses repayments on debt obligations it
issued or guarantees, including any bank, trust loans, bonds, or
other debt liabilities. Any debt exchange offer, or substantial
below-par buyback of its offshore bonds will likely be viewed as
distressed. We may also lower the rating if Logan executes a debt
restructuring that we consider as a default.
"We may raise the rating if Logan can obtain significant new funds,
possibly via material asset pledge or disposal, in a timely manner.
In addition, Logan would need banks to loosen their restrictions on
its cash, and recover some funding access, such that it is able to
formulate a feasible plan to tackle its debt maturities and avoid a
default scenario."
RED STAR: Fitch Affirms 'BB' LT Foreign Curr. IDR, Outlook Neg.
---------------------------------------------------------------
Fitch Ratings has affirmed China-based Red Star Macalline Group
Corporation Ltd.'s (RSM) Long-Term Foreign-Currency Issuer Default
Rating (IDR), senior unsecured rating and the rating on its USD300
million senior notes due 2022 at 'BB'. The Outlook is Negative.
Fitch has also removed all the ratings from Under Criteria
Observation (UCO), on which they were placed on 1 December 2021
following the publication of Fitch's new Parent and Subsidiary
Linkage Rating Criteria.
Fitch assesses the adjusted consolidated profile of RSM's 60%
parent, Red Star Macalline Holding Group Company (RSH), at 'bb-',
compared with 'b+' previously, due to its improved financial
profile and lower development property (DP) contributions following
major disposals in 2021. Under the new criteria, RSM follows the
'stronger subsidiary' path and is rated one notch above RSH's
consolidated profile; the old criteria constrained its rating at
two notches above RSH's consolidated profile. Fitch assesses RSM's
Standalone Credit Profile (SCP) at 'bb', which is supported by its
large asset scale, but constrained by limited capital access.
The Negative Outlook reflects Fitch's expectation that an
improvement in RSM's and RSH's credit metrics, including RSH's
holding company interest coverage and liquidity, may be slow.
KEY RATING DRIVERS
Parent's Streamlined DP Business: RSH disposed of 75% of its DP
business in 2021, resulting in an altered earnings mix and improved
liquidity profile. Fitch expects the revenue contribution from the
DP business to drop below 20% from 2022, from more than 40% in
2021, while holding-company interest coverage should improve to
1.2x by 2023, better than Fitch's estimate of below 0.5x in 2021.
RSH's holding company recurring EBITDA mainly includes non-property
EBITDA and dividends from RSM.
Fitch believes RSH's adjusted consolidated profile is now
comparable with 'bb-' Asia-Pacific property-related issuers, but
remains constrained by poor liquidity. Fitch believes liquidity at
RSH, excluding RSM, could remain tight if its capital access is
limited by the current market volatility. RSH has bond maturities
of CNY6.6 billion in 2022.
Improved Occupancy and Rent: RSM's occupancy rate recovered to
94%-95% in 2021, from 92% in 2020. The occupancy rate has dropped
from a high of 98% in 2017 due to the large scale of new mall
openings and Covid-19 pandemic. Fitch estimates that RSM's
recurring revenue - owned and leased mall rentals plus fixed
franchise fees from managed malls - surged by 20% to CNY8.5 billion
in 2021, as RSM charged full-year rentals to all malls after
providing a one-month rental waiver in 2020 due to the Covid-19
pandemic.
Lower Capex and Leverage: Fitch expects RSM's adjusted net
debt/recurring EBITDAR to stay at 7x-8x from 2022, and for
recurring EBITDAR interest coverage to remain at 1.6x-1.7x, after
recovering to 1.6x in 2021 from 1.4x in 2020. Both ratios support
of RSM's SCP of 'bb'. RSM reduced capex to CNY2 billion-2.5 billion
in 2021, from CNY4.5 billion in 2020, and refocused on improving
mall operations to maintain occupancy at 95%. It also cut gross
debt and interest expenses via asset disposals and a share
placement in 2021.
Low Cash/Short-Term Debt Coverage: RSM has maintained a low
cash/short-term debt ratio of 0.2x-0.5x since 2019. Fitch estimates
that available cash/short-term debt improved to around 0.5x by
end-2021, from 0.3x in September 2021, which was still low against
similarly rated peers.
Parent Constrains Rating: Fitch rates RSM based on the 'Strong
Subsidiary, Weak Parent' approach under Fitch's Parent and
Subsidiary Linkage Rating Criteria. Fitch assesses the linkage
factor of 'Legal Ring-Fencing' as 'Open' and 'Access and Control'
as 'Porous', which leads to RSM being rated up to one notch above
RSH's consolidated profile.
Fitch believes legal ring-fencing is 'Open', as there is no
covenanted ring-fencing mechanism in place to limit the parent's
access to RSM's cash flow, other than the limitation contained in
RSH's listing rules. Fitch assesses access and control as 'Porous',
as related-party transactions are subject to stock-exchange listing
rules and major transactions require public shareholder approval.
The two companies share three board directors; the founder, his
wife and sister, and have independent cash and funding policies.
DERIVATION SUMMARY
RSM has larger assets, EBITDA scale and asset diversification than
Yuexiu Real Estate Investment Trust (YXR, BBB-/Stable). However,
the quality of RSM's assets is weaker. RSM's malls specialise in
home improvement and furnishing products with limited product
diversification, while most of YXR's assets are in Guangzhou's
prime business district. Around half of YXR's revenue comes from
office space, which has been less sensitive to economic cycles than
malls. YXR's recurring EBITDA/gross interest of 2.2x-2.3x was
stronger than RSM's 1.6x-1.7x at end-2021.
RSM's business and financial profile is stronger than that of Lai
Fung Holdings Limited (B+/Negative), as RSM's scale is larger than
Lai Fung's and its portfolio is more diverse. Lai Fung's
non-development EBITDA interest coverage was also below 1.0x.
KEY ASSUMPTIONS
-- Portfolio mall revenue of CNY8 billion in 2021, CNY8.5 billion
in 2022 and CNY8.7 billion in 2023;
-- Recurring EBITDA of CNY4.6 billion-5.0 billion during
2021-2023, of which CNY4.0 million-4.5 million comes from annual
franchise fees;
-- CNY3.0 billion in capex and acquisitions during 2021-2023;
-- Annual cash interest expenses of CNY2.5 billion-2.6 billion
during 2021-2023;
-- Readily available cash of CNY5 billion during 2021-2023;
-- No asset disposals.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Weakening funding access or evidence of deteriorating
liquidity;
-- Adjusted net debt/recurring EBITDAR at above 11.5x for a
sustained period;
-- Recurring EBITDAR/gross interest plus rent expenses below 1.5x
for a sustained period;
-- Weakening of RSH's consolidated credit profile, including
RSH's holding company interest coverage and liquidity.
Factor that could, individually or collectively, lead to positive
rating action/upgrade:
-- The Outlook may be revised to Stable if the negative
guidelines are not met.
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: Fitch estimates that bank loans accounted for
80% of RSM's total debt at end-2021, after it repaid most of its
capital market instruments, up from 60% at end-2020. Most bank
loans are secured by RSM's investment properties and are usually
rolled over at maturity. Capital market maturities also appear
addressable. RSM has CNY500 million in onshore bonds and CNY2.1
billion in CMBS due in June, and a USD300 million offshore bond due
in September. The CNY500 million bonds will likely be repaid with
existing cash, while the CMBS are likely to be rolled as they are
backed by a quality Beijing mall. Options for the US-dollar bonds
include new bank loans.
Tighter Liquidity at Parent: RSH has high capital-market maturities
for its size, with a CNY2.5 billion bond maturing in May 2022 and
bonds totaling CNY3.5 billion puttable in November 2022. Fitch has
obtained details of RSH's refinancing plan for these bonds and
Fitch believes current market prices support the plan's
feasibility. RSH may also consider new bond issuance from unused
quota and new debt raised with a pledge of RSM shares.
ISSUER PROFILE
RSM is China's largest mall owner and operator, specialising in
home improvement and furnishing products. RSM's malls accounted for
17.1% of the country's home improvement and furnishings retail mall
sector, or 7.1% of total home improvement and furnishings
retail-sector sales, according to data from Frost and Sullivan.
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.
SUNAC CHINA: Fitch Lowers IDR to 'B-', On Watch Negative
--------------------------------------------------------
Fitch Ratings has downgraded China-based property developer Sunac
China Holdings Limited's Issuer Default Rating (IDR) to 'B-', from
'BB-', and the senior unsecured rating and outstanding senior
unsecured notes to 'B-', from 'BB-', and assigned a Recovery Rating
of 'RR4'. All ratings have been placed on Rating Watch Negative
(RWN).
The downgrade reflects increasing uncertainty over the refinancing
of Sunac's onshore and offshore capital-market debt maturing over
the next few months amid decreasing market confidence, as well as
falling contracted sales. Sunac raised long-term funding via share
placements in January 2022, but capital markets have since become
largely inaccessible for the company. Sunac has disposed of its
stakes in some projects and is currently in discussions on
additional project sales. Nevertheless, Sunac's margin of safety is
narrowing.
The Rating Watch Negative reflects the potential for further
negative rating action if Sunac fails to address the upcoming
capital-market debt maturities and make significant progress in
asset disposals, and if there is further deterioration in liquidity
and funding access.
KEY RATING DRIVERS
Increasing Refinancing Risks: Sunac has CNY17 billion in onshore
and offshore bonds due in 2022, including CNY4 billion in onshore
puttable bonds and CNY1.7 billion in onshore asset-backed
securities due in April, USD600 million (CNY3.9 billion) in
offshore and CNY1.44 billion in onshore bonds due in June, USD600
million in offshore and CNY2.09 billion in onshore bonds due in
August, and CNY1.3 billion in onshore bonds puttable in September.
Limited Capital Market Access: Fitch believes Sunac is not yet able
to fully access the onshore and offshore capital markets despite
completing HKD4.5 billion in share placements in January 2022.
Fitch believes the company is dependent on internal cash resources,
contracted sales proceeds and material asset disposals to address
the 2022 debt maturities. Sunac has a CNY2 billion onshore
medium-term note quota and CNY3.5 billion commercial
mortgage-backed securities quota, which it plans to issue once its
onshore subsidiary's 2021 audited results are available.
Negative news flow related to Sunac, including missing payments on
commercial bills due, has diminished investor confidence.
Management has resolved certain claims, but has yet to stem the
fall in investor confidence, which is reflected in a collapse in
bond prices. Deterioration in market confidence may diminish
Sunac's access to funding.
Decreasing Cash Balance: Sunac had CNY101 billion in cash and cash
equivalents as of end-1H21, on top of CNY22 billion in deposits in
regulated accounts. Only a proportion of this was located at the
rated entity level. Fitch believes Sunac's available cash would
have decreased significantly in 2021, as it needed to utilise its
cash to repay debt maturities amid falling contracted sales.
Asset Disposals to Continue: Sunac is disposing of onshore assets
to improve short-term liquidity. The company sold some onshore
residential, and cultural and tourism projects in 2H21 and January
2022. Fitch estimates Sunac has received more than CNY5 billion of
disposal proceeds since January 2022. Sunac is planning to sell
other projects in the next few months, including residential
projects in Beijing and Shanghai to state-owned asset-management
companies. However, further disposals will take time and be subject
to execution risks.
Weak Contracted Sales: Sunac's reported contracted sales declined
by 27% yoy in 2H21 and 26% yoy in 2M22. This was largely in line
with the sector's weak sales. The company's total contracted sales
rose by 4% to CNY597 billion in 2021, but Fitch expects sales to
fall in 2022 amid weakening sentiment in the property market, even
though Sunac's land bank is located in Tier 1-2 cities.
DERIVATION SUMMARY
Sunac's rating is driven by the narrowing margin of safety in
liquidity amid deteriorating market confidence. However, compared
with Shimao Group Holdings Limited (CCC), Sunac has raised more
long-term funding from the capital market in the past few months.
Sunac has also been proactively managing its asset disposals.
Sunac's upcoming market maturities are large, but it also has
significantly more assets than Zhongliang Holdings Group Company
Limited (B-/Negative) and Ronshine China Holdings Limited
(B-/Negative) that can be sold.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Low single-digit attributable sales growth in 2021 from 2020
before falling by 8%-13% per year in 2022-2023;
-- Contracted sales average selling price of around CNY14,000/sq
m;
-- Gradual decrease in land-bank life.
KEY RECOVERY RATING ASSUMPTIONS
Liquidation Approach
-- 4x EBITDA multiple to derive Sunac's going-concern value.
-- Fitch has assumed a 10% administrative claim in line with
criteria.
-- Application of liquidation value approach, as liquidation of
the assets would result in a higher return to creditors.
-- The liquidation estimate reflects Fitch's view of the value of
balance-sheet assets that can be realised in sale or
liquidation processes 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 56% applied to net property inventory. The
inventory mainly consists of completed properties held for
sales, properties under development (PUDs) and deposits for
land acquisitions. Different advance rates were applied to
these different inventory categories to derive the blended
advance rate for net inventory.
-- 70% advance rate to completed properties held for sale.
Completed commodity housing units are closer to readily
marketable inventory. The company's historical gross margin
for development property is around 21%. Therefore, a higher
advance rate of 70%, against the typical 50% mentioned in the
criteria for inventory, was applied.
-- 50% advance rate to PUDs, which are more difficult to sell
than completed properties. These assets are also in various
stages of completion. A 55% advance rate was applied because
Sunac's PUDs are mostly in Tier 1-2 cities. Sunac's land-bank
life is above three years, making the book value reasonably
close to the market value. The PUD balance - prior to applying
the advance rate - is net of margin-adjusted customer
deposits.
-- 90% advance rate to deposits for land acquisitions. Land held
for development is closer to readily marketable inventory, in
a similar way to completed commodity housing units, provided
it is well located. Sunac's land is generally not located in
significantly disadvantaged areas. Therefore, a higher advance
rate than the typical 50% mentioned in the criteria was
considered.
-- Advance rate of 50% applied to the book value of investment
properties (IP) and property, plant and equipment (PPE). The
IP and PPE mainly consist of hotels and buildings and cultural
and tourism facilities, including some ski facilities in
China. Fitch believes a 50% advance rate is sufficiently
conservative as Sunac generated a 4.2% annualised yield from
IP and PPE.
-- Advance rate of 50% applied to joint-venture net assets, which
typically include a combination of completed units, PUDs and
land bank. The 50% advance rate is in line with the baseline
advance rate for inventories.
-- Advance rate of 0% applied to excess cash after netting the
amount of trade payables.
The allocation of value in the liability waterfall results in
recovery corresponding to a Recovery Rating of 'RR4' for the senior
unsecured offshore bonds.
RATING SENSITIVITIES
Factor that could, individually or collectively, lead to positive
rating action/upgrade:
-- The RWN would be removed and ratings affirmed on sustained
improvement in liquidity and access to funding.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Failure to address upcoming capital-market debt maturities
through refinancing with long-term capital;
-- Lack of significant progress in asset sales; and
-- Evidence of significant deterioration in market confidence,
leading to significant worsening in funding access and lending
relationships.
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
Large Maturities: Sunac has CNY12.9 billion in public
capital-market debt due in 1H22 and CNY7.3 billion in 2H22, as well
as other interest-bearing debt, including loans from non-bank
financial institutions and banks. It had CNY101 billion in cash and
cash equivalents, plus deposits in regulated accounts of CNY22
billion at end-1H21. Fitch believes Sunac's cash and cash
equivalent decreased significantly in 2021. Most of the cash and
equivalents are at the project-company level and not available to
service the holding company's debt.
ISSUER PROFILE
Sunac is a large property developer in China with several other
business segments, such as cultural tourism and property
management. Sunac has been listed on the Hong Kong Stock Exchange
since 2010.
SUMMARY OF FINANCIAL ADJUSTMENTS
Fitch has excluded deposits in designated accounts from cash in
Fitch's leverage calculation and included this as inventory.
Restricted bank deposits are included in cash to calculate net
debt, as these are mainly pledged for obtaining bank loans.
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.
=========
I N D I A
=========
AARSON MOTORS: CARE Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Aarson
Motors (AM) continues to remain in the 'Issuer Not Cooperating '
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated January 25,
2021, placed the rating(s) of AM under the 'issuer non-cooperating'
category as AM had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. AM continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
December 11, 2021, March 3, 2022, March 4, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Aarson Motors was established in year 2001 with an objective to
enter into two-wheeler dealership business. The entity started its
operation from 2001 and managed by two partners namely Mr. Ashok
Kumar Singh and Mrs. Banti Agarwal. The entity is authorized dealer
of Hero Motocrop Limited (Two-wheeler division) with its office
located at Vidhan Sabha Road, Pandri, Raipur492005. Currently the
entity has fully automated workshops with firm trained mechanics,
the only dealership with two additional fully automated workshops
located at Siddarth Chowk, Tikarapara, Raipur and Pathak Hospital
Road, Fafadih, Raipur. Apart from this, they also have seven
sub-dealers in the region.
ABAN OFFSHORE: CARE Reaffirms D Rating on INR454.37cr LT Loan
-------------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
Aban Offshore Ltd (AOL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-Term Bank
Facilities 454.37 CARE D Reaffirmed
Cumulative
Redeemable
Preference
Shares-Series-I 105.00 CARE D Reaffirmed
Cumulative
Redeemable
Preference
Shares-Series-II 156.00 CARE D Reaffirmed
Cumulative
Redeemable
Preference
Shares-Series-III 20.00 CARE D Reaffirmed
Detailed Rationale & Key Rating Drivers
The ratings assigned to bank facilities and preference share issues
of AOL factor in the instances of delays in debt servicing due to
low fleet utilization.
CARE has withdrawn the Long-term ratings assigned to the Cash
Credit facility and Long-term/ Short-term rating assigned to
Bank Guarantee/Letter of Credit facility on receipt of No Dues
Certificate from the lenders.
Rating Sensitivities
Positive Factors - Factors that could lead to positive rating
action/upgrade:
* Satisfactory track record of timely servicing of debt obligation
on a sustained basis.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Moderation in financial performance in FY21 and ongoing delays in
debt servicing: There has been continued drop in fleet utilisation.
In FY21, with the outbreak of pandemic consumption of oil was
reduced. There were lower exploration activities which affected the
drilling industry. During FY21, income declined by 26% and company
has a loss. In 9MFY22, the TOI was at INR68.45 crore as against
INR182 crore in FY21. The moderation in income was on account of
further drop in fleet utilization. On account of losses reported
and continuous underutilization of fleets, there are ongoing delays
in debt servicing.
* Impairment of assets and negative net worth: In FY20, the company
has provided for impairment amounting to INR3531.73 crore of its
investment in wholly owned subsidiary Aban Holdings Pte Ltd,
Singapore and its indirect subsidiaries and for impairment of its
PPE aggregating to INR1,153.71. Further to this, in FY21, the
company has provided another INR116.34 crore in respect of Jack up
rigs and Drillship as the carrying amounts of such assets exceeded
its estimated value in use which is mainly due to slump in the oil
and gas industry. The company has a negative net worth of INR659.49
crore as on March 31, 2021.
Liquidity: Poor
On account of low fleet utilisation and unfavorable industry
scenario, AOL has been experiencing liquidity issues resulting in
delays in debt servicing.
Key Rating Strengths
* Experience of Promoters: AOL, largest private player in India in
the offshore drilling industry was promoted in 1986 by Aban
Constructions Private Limited, in collaboration with Chiles
Offshore Inc. (COI), USA, an offshore drilling company in the Gulf
of Mexico. Company's management team includes by Mr Reji Abraham
(Managing Director), Mr C P Gopalakrishnan, (CFO& Deputy MD) and Mr
P Venkateswaran, (Director).
Aban Offshore Limited (AOL), the flagship company of Aban group,
provides offshore drilling services to companies engaged in
exploration and production of oil and gas. AOL is the largest
private player in India in the offshore drilling industry and is
one of the largest in the world. The company and its wholly owned
subsidiaries had a total of 18 assets by the end of March 2021.
ADJOIN BUILT: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Adjoin Built & Developers Private Limted
Unit No. 302, Third Floor
D-Mall, Plot No. A-1
Netaji Subhash Place
Pitampura New Delhi
North East DL 110034
Insolvency Commencement Date: March 10, 2022
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: September 6, 2022
(180 days from commencement)
Insolvency professional: Aditya Kumar
Interim Resolution
Professional: Aditya Kumar
103, Pratap Bhawan
Bahadur Shah Zafar Marg
New Delhi 110002
E-mail: adtiya@ashwaniassociates.in
Last date for
submission of claims: March 24, 2022
AGRIFEM INDUSTRIES: CARE Lowers Rating on INR4.25cr Loan to B+
--------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Agrifem Industries (AFI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.25 CARE B+; Stable; Revised from
Facilities CARE B; Stable
Detailed Rationale & Key Rating Drivers
The revision in rating assigned to the bank facilities of AFI is on
account of improvement in overall financial risk profile marked by
improved scale of operations during FY21 (Audited; refers to period
from April 1 to March 31). The rating continued to derive strength
from the experienced management of AFI.
The rating however continued to remain constrained on account of
leveraged capital structure along with weak debt coverage
indicators and stretched liquidity. Furthermore, the rating is also
constrained on account of firm's presence in a highly competitive
industry, susceptibility of its profitability to volatile raw
material prices as well as its constitution as partnership
concern.
Rating Sensitivities
Positive Factors - Factors that could lead to positive rating
action/upgrade:
* Increase in scale of operations with TOI of more than INR25 crore
on sustained basis with reporting GCA over INR1.00
crore.
* Improvement in capital structure as marked by overall gearing
below 1.75 times on sustained basis.
Negative Factors- Factors that could lead to negative rating
action/downgrade:
* Decline in scale of operations with TOI below INR15 crore on
sustained basis
* Deterioration in capital structure with overall gearing above
4.00 times due to increase in working capital intensity,
major debt-funded capex or withdrawal of partner's capital
* Repayment of unsecured loans leading to liquidity crunches.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Leveraged capital structure and weak debt coverage indicators:
Despite improvement in capital structure of firm in FY21; it
continues to remain leveraged marked by an overall gearing of
2.57x as of March 31, 2021 as against 4.12x as on March 31, 2020.
The improvement in capital structure was mainly on account of
additional capital infusion by the partners to the tune of INR0.45
crore as well as accretion of profits to capital/net worth.
Further, with increase in profitability in absolute terms, AFI's
debt coverage indicators improved albeit remain weak marked by
Total debt to GCA of 6.81 years in FY21 (8.56 years in FY20) due to
increase in gross cash accruals. Interest coverage remained
moderate at 2.19x in FY21 as against 1.92x in FY20 due to increase
in PBILDT.
* Presence in a highly competitive industry and susceptibility of
profitability to volatile raw material prices: AFI operates in the
pipe manufacturing industry that is marked by intense competition
owing to the presence of large number of organized and unorganized
players. The highly fragmented nature of the industry restricts the
pricing flexibility and bargaining power of the players in the
market. Moreover, the key raw materials used in pipe manufacturing
process are PVC resin and chemicals. The prices of these are
inherently volatile with linkage to crude oil prices in the
domestic and international markets. This makes AFI's operating
profitability susceptible to adverse movement in raw material
prices due to limited pricing flexibility with its customers owing
to its presence in a competitive industry.
* Constitution as a partnership concern: AFI's constitution as
partnership firm restricts its overall financial flexibility in
terms of limited access to external funds for business
requirements. Further, there is inherent risk of possibility of
withdrawal of capital and dissolution of the firm in case of
death/insolvency of partner.
Key Rating Strengths
* Experienced management with presence of an established group: Mr.
Anoop Agrawal, Partner, MBA by qualification, has more than decade
of experience in the industry. He along with Mr. Prateek Agrawal,
son of Mr. Sanjay Agrawal - Partner, looks after the overall
affairs of the firm. Mr. Sanjay Agrawal a post graduate by
qualification, has more than two decades of experience in the
cotton ginning industry and has promoted KK Fibers. They are
assisted by a staff of well qualified and experienced employees for
smooth functioning of the firm. The firm belongs to "KK Group" and
group includes KK Fibers, KK Finecot Private Limited and Agro
Leader Pipes & Products Private Limited.
* Improving scale of operations and moderate profitability: The
firm's scale of operations grew by 85.74% in FY21; albeit remain
moderate marked by Total operating income (TOI) of INR16.99 crore
as against INR9.15 crore in FY20 on account of increase in
production as well as price realization. PBILDT margin declined and
remained moderate at 9.57% for FY21 as against 14.26% in FY20 due
to increase in raw material price i.e. granules. However, with
increase in scale of operations, PBILDT increased in absolute terms
to INR1.63 crore in FY21 as against INR1.30 crore in FY20.
Resultantly, AFI has reported PAT of INR0.29 crore in FY21 as
against INR0.13 crore in FY20. Consequently, GCA also improved at
INR0.78 crore in FY21 (Rs. 0.63 crore in FY20). The firm has
reported sales worth INR52.09 crore for 10MFY22 as it was able to
cater large orders with successful completion of capex.
Liquidity: Stretched
AFI's liquidity remained stretched marked by higher utilization of
its working capital limits and elongated operating cycle.
Utilization of working capital limits remained high at 80% for the
12 months ended February 2022. Operating cycle remained at 50 days
in FY21 as against 73 days in FY20. Average collection period
increased however it has been off set with reduction in inventory
holding period. AFI has been holding minimum inventory due to
increase in price fluctuations in recent times. AFI had modest cash
balance of INR0.11 crore as of March 31, 2021. AFI reported gross
cash accruals of INR0.78 crore during FY21 as against repayment
obligation of INR0.50 crore for FY22. Further, it generated cash
flow from operations worth INR1.38 crore as compared to 0.28 crore
in FY20 due to improved performance during the year. It had availed
a Covid-19 emergency credit line of INR0.98 crore.
Established in November 2015, Khargone (Madhya Pradesh) based
Agrifem Industries (AFI) started commercial operations in September
2017 and is currently managed by Mr. Anoop Agrawal and Mr. Sanjay
Agrawal who share profit and loss in the ratio of 50:50. AFI is
mainly engaged in the manufacturing of HDPE pipes and Sprinkler
Pipes. The firm sells High Density Polyethylene (HDPE) pipes and
sprinkler pipes under the brand name of "Agrifem". The firm has
undertaken CAPEX to increase installed capacity up to 12000 MTPA.
AIREN COPPER: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Airen Copper Private Limited
F-728, Road No. 9F/2
Vishwakarma Industrial Area
Jaipur Raj 302013
Insolvency Commencement Date: February 21, 2022
Court: National Company Law Tribunal, Jaipur Bench
Estimated date of closure of
insolvency resolution process: August 20, 2022
Insolvency professional: Vishnu Upadhyay
Interim Resolution
Professional: Vishnu Upadhyay
A-44, First floor
Bhaskar Enclave-2
Near Harbinger Heights
Golyawas, VT Road
Mansarover, Jaipur
Rajasthan 302020
E-mail: ipvishnu.upadhyay@gmail.com
- and -
A-38, First floor
Bhaskar Enclave-2
Near Harbinger Heights
Golyawas, VT Road
Mansarover, Jaipur
Rajasthan 302020
E-mail: airencirp@gmail.com
Last date for
submission of claims: March 7, 2022
BALSARA ENGINEERING: Insolvency Resolution Process Case Summary
---------------------------------------------------------------
Debtor: Balsara Engineering Products Limited
Sf-273, Kavaraipettai-Sathyavedu Road
Thanipoondi Post, Gummidipoondi Taluk
Tamil Nadu 601202
Insolvency Commencement Date: March 8, 2022
Court: National Company Law Tribunal, Chennai Bench
Estimated date of closure of
insolvency resolution process: September 4, 2022
Insolvency professional: Sri Ravindra Beleyur
Interim Resolution
Professional: Sri Ravindra Beleyur
"Shreevastha", 428
19th B Cross, 3rd Block
Jayanagar, Bengaluru 560011
Mobile: +91 8026540193
E-mail: ravi@beleyur.com
rp.balsara@beleyur.com
Last date for
submission of claims: March 22, 2021
BARODA AGRO: CARE Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Baroda Agro
Chemicals Limited (BACL) continues to remain in the 'Issuer Not
Cooperating ' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 23.61 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated January 15,
2021, placed the rating(s) of BACL under the 'issuer
non-cooperating' category as BACL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. BACL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated December 1, 2021, December 11, 2021 and December
30, 2021.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Vadodara-based (Gujarat) Baroda Agro Chemicals Limited (BACL) was
incorporated on January 17, 1996. BACL has been engaged in toll
manufacture of agro-chemical inputs. BACL built good manufacturing
facilities, technology, practices and knowledge, which has made it
a leader in toll manufacturing for agro-inputs in India. The
company is operating from its sole ISO certified manufacturing
facilities located at Panelav, Village Halol, Vadodara. BACL also
does job work on the raw materials received from its customers and
deliver the final product in turn. Final product of BACL i.e.,
pesticides and insecticides of various grades and types finds its
application fertilizers and pesticides, mainly used in agro
industries. The associate concerns of BACL, namely Ravi Plant
Biotechnologies Limited is engaged into business of metals and
chemicals and India Farmcare Private Limited which is engaged into
marketing pertaining to innovation in the areas of Crop Protection
Products, Fertilizers, Irrigation Systems and Agricultural
Implements.
BENGAL, INDIA: Government Heading Towards Bankruptcy
----------------------------------------------------
Press Trust of India reports that leader of the Opposition in West
Bengal Assembly, Suvendu Adhikari of the BJP, on March 15, accused
the Trinamool Congress government of mismanagement of the state's
finances and claimed that it is heading towards bankruptcy.
Terming the budget as a "bluff", Adhikari said the TMC was keen to
attack the BJP leadership over fuel prices but the state has not
slashed the cess it has imposed on petrol and diesel, PTI relates.
Several states have reduced fuel prices in that way, he said in the
West Bengal Assembly.
"Due to mismanagement of finances, the state is slowly moving into
a debt trap. The Left Front's legacy of taking loans and putting
the state under a debt burden is continuing. It is heading towards
a situation when it can no longer come out of debt trap," the
report quotes Adhikari as saying.
He claimed that Chief Minister Mamata Banerjee talks about the
"Lakshmir Bhandar" scheme, a monthly allowance to women heads of
families, if a public representative suggested that bridges and
roads are needed.
Minister of State (Independent Charge) Finance department,
Chandrima Bhattacharya, said she would accept the demand of
Adhikari if the BJP leader is able to make the central government
release funds due to the state, PTI relays.
The Centre has yet to give the state INR90,000 crore including GST
compensation which is due, she said, the report adds.
BMS PROJECTS: CARE Lowers Rating on INR5.0cr LT Loan to B-
----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
BMS Projects (BP), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Short Term Bank 4.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated January 25,
2021, placed the rating(s) of BP under the 'issuer non-cooperating'
category as BP had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. BP continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
December 11, 2021, March 3, 2022, March 4, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of BP have been revised
on account of non- availability of requisite information.
BMS Projects (BMS) was established in the year 2014 with its office
located at Jagdalpur, Dist- Bastar, Chhattisgarh. Since its
inception, the entity has been engaged in civil construction of
road, building. Further, the entity is also classified as class
'L1' contractor in civil (B&R) under the department of PWD
Government of Chhattisgarh and PWD of Orissa. Class 'L1' contractor
can bid for all types and higher value of contracts of Public Works
Department (PWD) in Chhattisgarh and Orissa Mr. Manish Somani has
more than a decade of experience in civil construction industry. He
looks after the day to day operations of the entity along with
other partner and with support of other technical and non-technical
professionals who are having long experience in this industry.
DAKSHIN ODISHA: CARE Reaffirms D Rating on INR149.41cr LT Loan
--------------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
Dakshin Odisha Urja Private Limited (DOUPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 149.41 CARE D Reaffirmed
Detailed Rationale & Key Rating Drivers
The reaffirmation in rating assigned to the bank facilities of
DOUPL continues to factor in the deterioration of the coverage
metrics and stretched liquidity profile of the company. Further,
rating also factors in lower cash accruals against the debt
repayment for company. However, the rating takes cognizance of
long-term revenue visibility due to the existence of power purchase
agreement (PPA) with Solar Energy Corporation of India (SECI) at a
fixed tariff for the entire capacity with stable track record of
collection.
Rating Sensitivities
Positive Factors - Factors that could lead to positive rating
action/upgrade:
* Significant improvement in generation and reduction in expenses
on a sustained basis, leading to higher cash accrual
* Substantial improvement in leverage and coverage metrics
Detailed description of the key rating drivers
Key Rating Weaknesses
* Subdued operational performance: Against the P-90 level of
21.50%, Capacity Utilization Factor (CUF) has remained low at
18.40% in FY21 (refers to period of April 1 to March 31). During
10MFY22, CUF continued to be low at 16.38%.
* Leveraged capital structure with weak coverage indicators:
Financial risk profile of DOUPL is weak characterized by negative
networth and weak interest cover. Networth of the company stood
negative as of March 31, 2021, on account of large losses incurred
during FY20 and FY21. Further, lower generation and higher interest
burden due to higher debt resulted in weak interest cover of 1.18x
in FY21 (PY: -2.16x).
* Exposure to climatic conditions and technological risks:
Achievement of desired CUF going forward would be subject to
changes in climatic conditions, amount of degradation of modules as
well as other technological risks and generation at
envisaged levels remains crucial for the project.
Key Rating Strengths
* Long-term revenue visibility with off-take arrangement in the
form of PPA signed with SECI: DOUPL has entered into a long term
PPA with SECI in May 2017 for supply of power for duration of 25
years at a tariff of INR4.43 per unit, providing stable revenue
visibility in future. However, the tariff has been revised downward
to INR3.75 per unit as a consequence of the delay in COD
achievement. Since April 2021, tariff has been increased to
INR4.155 per unit. Nonetheless, presence of off-take arrangement
provides long term revenue visibility of the project. Further, the
payment from off-taker has been received broadly in 60-70 days in
the last twelve months.
* Experienced promoters with portfolio of geographically
diversified assets: Essel Group has developed an aggregate capacity
of about 645 MW in Solar PV generation under various Special
Purpose Vehicles (SPVs) across Uttar Pradesh, Karnataka, Punjab and
Maharashtra. In August 2019, Adani Green Energy Limited (AGEL) has
signed a share purchase agreement for acquisition of 205 MW of
operating solar assets of Essel group located in Punjab, Karnataka
and Uttar Pradesh. During FY20, the group has infused INR17.11 cr
in DOUPL in the form of unsecured inter corporate deposit to
support its operations.
Liquidity: Stretched
Lower generation levels of the project coupled with lower tariff
(due to delay in COD of the project) has led to low cash accrual
vis-a-vis its large debt obligation. This had resulted in
intermittent delays in debt servicing in the past. The cash and
bank balance stood at INR1.29 crore as of March 31, 2021.
DOUPL is a Special purpose vehicle (SPV) of Essel Green Energy
Private Limited and is developing solar PV project of total
capacity 40 MW in Bargarh District of Odisha. The Power Purchase
Agreement (PPA) has been executed between DOUPL and Solar Energy
Corporation of India Limited (SECI) for the purchase of solar power
for a period of 25 years at a tariff of INR4.43 per unit which has
been revised to INR3.74 per Kwh due to delay in commissioning.
DODSAL ENTERPRISES: CARE Lowers Rating on INR105cr Loan to B-
-------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Dodsal Enterprises Private Limited (DEPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 105.00 CARE B-; Stable Rating removed
Facilities from ISSUER NOT COOPERATING
category and Revised from
CARE D; Stable outlook assigned
Long Term/ 129.58 CARE B-; Stable/CARE A4 Rating
Short Term removed from ISSUER NOT
Bank Facilities COOPERATING category and
Revised from CARE D
Detailed Rationale & Key Rating Drivers
Subsequent to the last rating action on November 25, 2021, DEPL has
shared the requisite information and data required for monitoring
the ratings of its long term and short-term bank facilities.
Resultantly, the Issuer Not Cooperating status has been revoked in
line with CARE Ratings Policy in respect of Non-cooperation by
issuer.
The revision in ratings assigned to the bank facilities of DEPL
primarily factors in the track record of debt servicing within
permissible time limits as laid out under CARE's policy on default
recognition and policy on curing period. CARE Ratings has relied on
the bank statements furnished by DEPL and lenders' confirmation
received from the lenders of DEPL in this regard. CARE Ratings
further notes that throughout YTDFY22 (refers to a period from
April 1 to March 1) DEPL has been servicing cash credit interest
obligations within a period of 30 days from being overdrawn.
Furthermore, the rating revision also factors in the steady receipt
of funds from Nuclear Power Corporation of India Limited (NPCIL-
rated CARE AAA; Stable) on monthly basis, for which DEPL is
executing a project.
The rating strengths however continue to be tempered by diminishing
revenue visibility, weak financial and operational performance,
highly intensive working capital operations and stretched liquidity
position of the company.
Rating Sensitivities
Positive Factors - Factors that could lead to positive rating
action/upgrade:
* Receipt of new orders leading to an increase in the order book
position of the company with medium term revenue visibility.
* Improvement in working capital cycle leading to build up of
adequate liquidity
* Improvement of financial and operational performance of the
company with generation of positive cash accruals
* Timely servicing of interest obligations with zero stances of
overdrawals in cash credit account
Negative Factors- Factors that could lead to negative rating
action/downgrade:
* Any delay in receipt of payments for project currently being
executed for NPCIL
Detailed description of the key rating drivers
Key Rating Weakness
* Deteriorating operational and financial performance of the
company: The company has recorded deterioration in operational and
financial performance for the past three fiscals with a total
operating income (TOI) of INR49.80 crore in FY21 against INR69.94
crore in FY20 and INR84.71 crore in FY19. The company has also
reported losses at PAT level for the period between FY19-FY20. The
cash accruals of the company are weak which has also led to
overdraws in working capital limits ranging for a period of 15-20
days.
* Diminishing revenue visibility: DEPL currently has only one
project in its orderbook from NPCIL which is to be completed by
December 2022. The lack of revenue visibility post completion of
this project has heightened the cashflow risk thereby constraining
the credit profile of the company.
* Highly working capital intensive nature of operations: The
operations of DEPL are highly working capital intensive with
working capital limits being overdrawn and the operations are
dependent on payments from NPCIL. A significant amount of working
capital is blocked in form of receivables and work in progress due
to contractual obligations therefore the working capital cycle of
the company has been elongated beyond normal levels.
Key Rating Strengths
* Experience of promoters and strong parentage of the company: DEPL
belongs to the Dodsal group, founded in Mumbai, India, in 1948 by
the Nandlal Kilachand family. The group moved its headquarters from
Mumbai to Dubai in 2003. The group has demonstrated experience of
more than four decades in the execution of the turnkey projects.
Furthermore, the group had executed projects for reputed clients
such as Abu Dhabi Gas Industries Ltd, Saipem S.p.A, Italy, etc.
Liquidity: Stretched
While the company doesn't have any long-term external debts, its
liquidity is stretched on account of weak cash accruals marked by
elongated working capital cycle leading to overdraws in cash credit
account.
Dodsal Enterprises Private Limited (DEPL), a closely-held company
formerly known as Dodsal Engineering & Construction Pvt Ltd till
August 2009, belongs to the Dubai-based Dodsal group. DEPL was
established in 1948 to carry out the engineering and construction
contracts (EPC Division) in India and later diversified into
business such as Casual Dining Restaurant (Food Division) and
Trading (Agency Division). The food business was sold to Samara
Capital (Private Equity) in September 2015.
G.R. CABLES LIMITED: Insolvency Resolution Process Case Summary
---------------------------------------------------------------
Debtor: M/s G.R. Cables Limited
36, Santosh Nagar
Mehdipatnam
Hyderabad 500082
Telangana
Insolvency Commencement Date: March 11, 2022
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: September 4, 2022
(180 days from commencement)
Insolvency professional: Maligi Madhusudhana Reddy
Interim Resolution
Professional: Maligi Madhusudhana Reddy
MMR Lion Corp, 4th Floor
HSR Eden, Beside Cream Stone
Road No. 2 Banjara Hills
Hyderabad, Telangana 500034
E-mail: mmreddyandco@gmail.com
irpgrcables@gmail.com
Mobile: 9848271555
Last date for
submission of claims: March 25, 2022
KANODIA TECHNOPLAST: Insolvency Resolution Process Case Summary
---------------------------------------------------------------
Debtor: Kanodia Technoplast Limited
A-54 Wazirpur Industrial Area
New Delhi DL 110052
IN
Insolvency Commencement Date: March 8, 2022
Court: National Company Law Tribunal, Delhi Bench
Estimated date of closure of
insolvency resolution process: September 4, 2022
Insolvency professional: Navjit Singh
Interim Resolution
Professional: Navjit Singh
218-A, 1st Floor, Shop No. 4
Rama Market, Pitampura
Delhi 110034
E-mail: navjit92ca.ip@gmail.com
ktl.cirp2022@gmail.com
Last date for
submission of claims: March 22, 2022
KILBURN ENGINEERING: CARE Withdraws C/A4 Bank Debts Rating
-----------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
Kilburn Engineering Limited (KEL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/
Short Term
Bank Facilities - Reaffirmed at CARE C/CARE A4
and Withdrawn
Long Term
Bank Facilities - Reaffirmed at CARE C and
Withdrawn
Long Term
Bank Facilities - Reaffirmed at CARE D and
Withdrawn
Detailed Rationale & Key Rating Drivers
CARE Ratings Limited has reaffirmed and withdrawn the outstanding
ratings of 'CARE C/CARE D/CARE A4' assigned to bank facilities of
KEL with immediate effect. The above action has been taken at the
request of Kilburn Engineering Limited and 'No Objection
Certificate' received from the bank(s) that have extended the
facilities rated by CARE Ratings Ltd.
CARE has reaffirmed the rating of KEL on account of absence of
information of term and conditions of the resolution plan for
restructuring of term loan, however, CARE notes that there has been
no delay or default post restructuring of the term loan as per
banker's feedback.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Moderation in capital structure: Overall gearing of KEL
deteriorated to 1.80x as on March 31, 2021 as against 1.18x on
March 31, 2020 on account of significant erosion in net worth due
to exceptional losses of Rs 127 crores during FY21. These losses
pertain to unrecoverable ICDs given to group companies. The company
has made provision for ICDs extended to group companies and
interest on ICDs has been written off in FY21. KEL has made
provision for INR99.50 crore of ICDs as of March 31, 2021 and
written off INR27.83 crore interest accrued during FY21. As a
result, KEL's networth declined to INR47.73 crore as of March 31,
2021 (Rs.103.44 crore as on March 31, 2020), leading to
deterioration in overall gearing and debt coverage indicators.
* Deterioration in scale of operation: KEL's income from operation
declined from Rs 147.62 crores in FY20 to Rs 96.59 crores in FY21
due to impact of covid. Profitability margins marginally moderated
from 17.44% in FY20 to 15.73% in FY21. Due to exceptional losses,
the company has suffered cash losses of Rs 121.79 crores during
FY21.
Key Rating Strengths
* Experienced track record in manufacturing customized process
equipment: KEL has over three decades of experience in
manufacturing customised process equipment in various industries
ranging from chemicals, petrochemicals, oil, gas, refineries,
fertilisers, nuclear power plants and food processing industries
covering tea, sugar, paddy and coconut. The company has developed
machinery for tea industry which is now used across the world. The
company has also manufactured certain niche products such as Rotary
Dryer for Carbon Black, Instrument and Utility gas drying System
(IUGS), Soda ash Calciners.
Incorporated on September 7, 1987, Kilburn Engineering Limited
(KEL) is a Williamson Magor Group Enterprise listed on Bombay Stock
Exchange (BSE) and Calcutta Stock Exchange (CSE). KEL manufactures
drying systems, pneumatic handling systems, heat exchangers, etc
with specialized expertise in design, engineering, manufacturing
and installation of drying systems for solids, liquids and gases.
KEL caters to various industries ranging from Chemicals,
Petrochemicals to Food, Oil & Gas, Refinery, Power Plants & Steel.
KEL also provides services for erecting, commissioning and annual
maintenance of the equipment manufactured.
KONARK SYNTHETIC: CARE Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Konark
Synthetic Limited (KSL) continues to remain in the 'Issuer Not
Cooperating ' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 19.25 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 9.70 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated December 17, 2020, placed
the rating(s) of KSL under the 'issuer non-cooperating' category as
KSL had failed to provide information for monitoring of the rating.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating has been reaffirmed on account of delay in the debt
servicing.
Detailed description of the key rating drivers
At the time of last rating on December 17, 2020, the following were
the rating strengths and weaknesses.
* Delay in debt servicing: As per audit report of FY21 published on
BSE wherein it has mentioned that the company has made defaults in
the repayment of dues to banks.
Konark, incorporated in 1984, is primarily engaged in the
manufacturing specialty yarn and fabric. Apart from the
manufacturing activities the company is also involved in job work
for ready-made garments and trading of processed fabrics. The
company has three units namely Yarn unit in Silvaasa, Fabric unit
in Sarigram (Gujarat) and the Garment manufacturing unit in
Bangalore and has been certified as an ISO 9001:2000 company. The
Company's product range includes yarn dyed and piece dyed polyester
fabrics and its blends with cotton, linen, rayon and silk. It
provides texturized and air-texturized yarn in India. Its apparel
product range includes trousers, shirts and shorts.
LAKSHMI COTFAB: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Lakshmi
Cotfab Private Limited (LCPL) continues to remain in the 'Issuer
Not Cooperating ' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 13.10 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated January 15,
2021, placed the rating(s) of LCPL under the 'issuer
non-cooperating' category as LCPL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. LCPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated December 1, 2021, December 11, 2021 and December
30, 2021.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Rajkot (Gujarat) based Lakshmi Cot Fab Private Limited was
incorporated in September 2013 by Mr Nimish Lotiya, Mr Vishal
Lotiya and Mr Harilal Khakhar. LCFPL is engaged into cotton
ginning, cleaning and bailing process with an installed capacity of
350 Full Pressed cotton bales per day (165 kg each) as on March 31,
2018. The company procures raw cotton from farmers and sells its
products in domestic market to the states like Gujarat,
Maharashtra, Tamilnadu etc.
MACROTECH DEVELOPERS: Moody's Ups CFR to B2, Outlook Remains Pos.
-----------------------------------------------------------------
Moody's Investors Service has upgraded to B2 from B3 the corporate
family rating of Macrotech Developers Limited (MDL) and the backed
senior secured rating of Lodha Developers International Limited's
USD bonds, which are guaranteed by MDL.
The outlook on the ratings remains positive.
"The upgrade of MDL's ratings to B2 from B3 reflects the company's
improved liquidity following the partial prepayment of its $225
million backed senior secured bonds due in 2023, as well as a
continued recovery in operating performance both at India and
London," says Sweta Patodia, a Moody's Analyst.
"The positive outlook reflects our view that MDL's credit profile
could improve further if company is able to demonstrate a track
record of strong operating performance while adhering to its
committed financial policies," adds Patodia.
RATINGS RATIONALE
On March 14, MDL prepaid $170 million of its $225 million backed
senior secured notes due March 2023 out of sales collections from
its London projects. The company expects to repay the balance $55
million by June 2022. Of the $425 million (GBP328 million) of
inventory financing that was outstanding at Grosvenor Square (GSQ)
as of November 2021, MDL has repaid around $180 million in January
2022.
These debt repayments not only strengthen the company's liquidity
but also reflect a sustained recovery in operating performance at
its London projects, which had thus far been a drag on its credit
profile.
In addition to the $55 million of outstanding bonds, the company
now has around $240 million of loan outstanding at Grosvenor
Square, which is due for repayment in January 2026. Against this,
the company has around $285 million of unsold inventory and $170
million of pending collections (after considering the $55 million
bond repayment), thus providing a debt-to-asset cover of around 53%
for the loan.
Operating performance in India also remains strong. MDL achieved
operating sales of INR26 billion for the quarter ended December
2021, which was the highest since at least June 2019. Collections
during the quarter also remained healthy at around INR21 billion.
Moody's expects MDL's operating sales and collections to remain
buoyant over the next 12-18 months as pandemic-related restrictions
ease and rising vaccination rates drive up economic activity.
Structural changes in customer preferences toward bigger homes will
also support housing demand. MDL is well placed to capitalize on
these positive industry trends, given its stock of ready inventory
and its strong launch pipeline over the next 12 months.
Liquidity at MDL's Indian operations has also improved, following
debt reduction through inorganic measures taken by the management.
As of December 2021, debt at the company's Indian operations was
around INR99 billion, reflecting a 38% reduction from debt levels
as of March 2021.
In November 2021, MDL raised around INR40 billion through a
qualified institution placement of its equity shares. Proceeds from
the equity offering will be used to fund future growth, which will
allow the company to use its internal cash flow generation for
further debt reduction.
Consequently, MDL's leverage, as measured by debt/homebuilding
EBITDA (after consolidating its London operations), is expected to
be around 3.0x by March 2022, compared with 6.6x as of March 2021.
MDL will be raising another tranche of equity over the next 18-24
months to comply with listing regulations in India, which require a
minimum public float of 25% within three years of listing. This
could support further improvement in its credit metrics.
In terms of environmental, social and governance (ESG) factors, MDL
is exposed to social and governance risks. Beyond pandemic-related
disruptions, the company is exposed to changes in demographic and
societal trends that may impact housing demand. However, given
India's favorable demographics, housing demand will likely remain
buoyant, mitigating this risk to a large extent.
In terms of the governance risk, Moody's expects MDL to remain
exposed to risks from its concentrated ownership, given that its
promoter group continues to hold 82.2% of the company. In addition,
the company's dividend policy might change following its public
listing. Payment of dividends, if substantial, will reduce MDL's
free cash flows and slow down its likely deleveraging.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could upgrade the ratings if the company demonstrates a
track record of strong operating performance while maintaining
strong credit metrics and good liquidity.
Metrics that would support an upgrade include adjusted
debt/homebuilding EBITDA below 4.0x and adjusted homebuilding
EBIT/interest expense above 3.0x on a sustained basis.
Moody's could revise the outlook to stable if MDL's operating
performance sharply declines from current levels or if its
liquidity profile weakens.
The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in January 2018.
Macrotech Developers Limited is the largest real estate developer
in India by sales of residential apartments. The company is focused
on residential developments in the Mumbai Metropolitan Region, with
some projects in nearby Pune. It is listed on the Indian stock
exchanges, and its promoter group, comprising the Lodha family and
their respective investment vehicles, own a stake of around 82.2%
in the company.
MATA ENERGY: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Mata Energy Limited
503, Topaz Building
Panjagutta, Hyderabad
Telangana 500082
Insolvency Commencement Date: March 9, 2022
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: August 30, 2022
Insolvency professional: Naga Bhushan Bhagawati
Interim Resolution
Professional: Naga Bhushan Bhagawati
H.No. 1-1-380/38
Ashok Nagar Extension
Hyderabad 500020
E-mail: bnagabhushan@yahoo.com
rp.mataenergy@gmail.com
Last date for
submission of claims: March 23, 2022
MODEX INT'L: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Modex International Securities Limited
23/26, Third Floor
East Patel Nagar
Delhi 110008
Insolvency Commencement Date: March 4, 2022
Court: National Company Law Tribunal, New Delhi, Bench IV
Estimated date of closure of
insolvency resolution process: August 31, 2022
Insolvency professional: Sanjay Garg
Interim Resolution
Professional: Sanjay Garg
193, Agroha Kunj, Sector 13
Rohini, Delhi 110085
E-mail: rp.sanjaygarg@gmail.com
- and -
908, 9th Floor, D Mall
Netaji Subhash Place
Pitampura 100034
E-mail: cirp.modex@gmail.com
Last date for
submission of claims: March 18, 2022
MUHLENBAU EQUIPMENTS: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: Muhlenbau Equipments Pvt Ltd
C-1, Casa Lavella
85, Lavelleroad
Bangalore 560001
Insolvency Commencement Date: March 3, 2022
Court: National Company Law Tribunal, Bangalore Bench
Estimated date of closure of
insolvency resolution process: August 30, 2022
Insolvency professional: Konduru Prasanth Raju
Interim Resolution
Professional: Konduru Prasanth Raju
B-804, Shriram Suhaana Apartments
Harohalli, Nagenahalli Gate
Yelahanka, Bangalore
Karnataka 560064
E-mail: ipkpraju@gmail.com
muhlenbaucirp@gmail.com
Last date for
submission of claims: March 17, 2022
NIKHIL FOOTWEARS: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Nikhil Footwears Private Limited
Registered office:
98, Shahzada Bagh
Industrial Area Old Rohtak Road
Delhi 110035
Also at:
52-53, HSIDC Industrial Estate
Kundli, Sonipat
Haryana 131028
Insolvency Commencement Date: March 10, 2022
Court: National Company Law Tribunal, Bench-IV, New Delhi
Estimated date of closure of
insolvency resolution process: September 6, 2022
(180 days from commencement)
Insolvency professional: Rahul Jain
Interim Resolution
Professional: Rahul Jain
27/33, Ground Floor
Gali No. 9, Pandav Road
Vishwas Nagar, Shahdara
New Delhi 110032
E-mail: ca.rahuljain.2005@gmail.com
- and -
Immaculate Resolution Professionals
Private Limited
Unit No. 111-112, First Floor, Tower-A
Spazedge Commercial Complex
Sector-47, Sohna Road
Gurgaon 122018
E-mail: cirp.nikhilfootwears@gmail.com
Last date for
submission of claims: March 24, 2022
ORANGE MEDICARE: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Orange Medicare and Research Centre Private Limited
Sr. No. 117
Infront of R & De Alandi Road
Kalas, Vishrantwadi
Pune, Maharashtra 411015
IN
Insolvency Commencement Date: March 8, 2022
Court: National Company Law Tribunal, Mumbai Bench-IV
Estimated date of closure of
insolvency resolution process: August 15, 2022
(180 days from commencement)
Insolvency professional: Mr. Udayraj Patwardhan
Interim Resolution
Professional: Mr. Udayraj Patwardhan
Naman Midtown, B Wing
1106, 11th Floor
Behind Kamgar Kala Kendra
Senapati Bapat Marg
Elphinstone West
Mumbai City, Maharashtra 400013
E-mail: ca.udayraj@viajure.in
cirporange@gmail.com
Last date for
submission of claims: March 22, 2022
PALAMOOR PAPER: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Palamoor
Paper Products Limited (PPPL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 11 CRISIL D (Issuer Not
Cooperating)
Proposed Cash 4 CRISIL D (Issuer Not
Credit Limit Cooperating)
CRISIL Ratings has been consistently following up with PPPL for
obtaining information through letters and emails dated January 22,
2022 and February 7, 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 continues to be 'CRISIL D Issuer Not Cooperating'.
PPPL, incorporated in January, 2012, is setting up a facility for
manufacturing kraft paper. Based out of Hyderabad (Telangana), PPPL
is promoted by Mr Rajendra Prasad Uppalapati, Mr Chandra Shekhar,
Ms Prasanna Maipalli, and others.
PALLAVA GRANITE: CRISIL Moves B- Debt Ratings to Not Cooperating
----------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Pallava Granite Industries Chennai Private Limited (PGICPL) to
'CRISIL B-/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.5 CRISIL B-/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Long Term 5.0 CRISIL B-/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
Working Capital 2.5 CRISIL B-/Stable (ISSUER NOT
Term Loan COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with PGICPL for
obtaining information through letters and emails dated January 28,
2022 and February 24, 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 PGICPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
PGICPL is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the rating on
bank facilities of PGICPL to 'CRISIL B-/Stable Issuer not
cooperating'.
PGICPL processes and exports granite; its day-to-day operations are
managed Mr. Subba Reddy. PGICPL was set up in 1983. Processing unit
is located near Pondicherry in Tamilnadu.
PRANAV CONSTRUCTION: Insolvency Resolution Process Case Summary
---------------------------------------------------------------
Debtor: Pranav Construction Systems Private Limited
Plot No. C-10, T.T.C. Industrial Estate
M.I.D.C. Pawane, Koperkhairne
Navi Mumbai 400705
Insolvency Commencement Date: March 11, 2022
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: September 7, 2022
(180 days from commencement)
Insolvency professional: Mr. Kamal Kishor Gurnani
Interim Resolution
Professional: Mr. Kamal Kishor Gurnani
Flat No. 1301, Building No. 23E
Palazzio CHS Ltd.
Mahada Housing Society
Powai, Mumbai 400076
E-mail: kamalgurnaniip@gmail.com
- and -
702, Janki Centre
Dattaji Salvi Road
Off Veera Desai Road
Andheri West, Mumbai 400053
E-mail: cirp.pcspl@rirp.co.in
Last date for
submission of claims: March 25, 2022
PUSHPAK COLOUR: CRISIL Keeps B Debt Rating in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Pushpak Colour
Roof India Private Limited (PCRI) continues to be 'CRISIL B/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12.5 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PCRI for
obtaining information through letters and emails dated January 22,
2022 and February 7, 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 PCRI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PCRI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PCRI continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Incorporated in 2010, Pune-based PCRI manufactures roofing sheets,
metal purlins and deck sheets. Mr Amit Katariya manages the
operations.
RAAM TWO: CRISIL Keeps B Debt Ratings in Not Cooperating Category
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Raam Two
Wheelers India Private Limited (RTW) continue to be 'CRISIL
B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL B/Stable (Issuer Not
Cooperating)
Inventory Funding 7 CRISIL B/Stable (Issuer Not
Facility Cooperating)
Long Term Bank 3 CRISIL B/Stable (Issuer Not
Facility Cooperating)
Proposed Cash 3 CRISIL B/Stable (Issuer Not
Credit Limit Cooperating)
CRISIL Ratings has been consistently following up with RTW for
obtaining information through letters and emails dated January 22,
2022 and February 7, 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 RTW, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RTW
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RTW continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
RTW was originally set up in 2011 as a sole proprietorship firm by
Mr. Nalla Amith Reddy; this firm was reconstituted as a private
limited company with the current name in 2015. The company is an
authorised dealer for Honda Motorcycle and Scooter India Pvt Ltd's
two-wheelers in Hyderabad.
RADHADEVI INDUSTRIES: CRISIL Keeps D Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Radhadevi
Industries (RDI) continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.5 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 1.2 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 6.3 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with RDI for
obtaining information through letters and emails dated January 22,
2022 and February 28, 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 RDI, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RDI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RDI continues to be 'CRISIL D Issuer Not Cooperating'.
RDI was set up in 2005 by Mr. Bosukunda Radhakrishna and his family
members. The firm manufactures forged components for the automobile
industry. It is based in Kakinada, Andhra Pradesh.
RAMA RICE: CRISIL Keeps B+ Debt Rating in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Rama Rice
Mills (RRM) continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with RRM for
obtaining information through letters and emails dated January 22,
2022 and February 07, 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 RRM, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RRM
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RRM continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Established as a partnership firm in 1990 by Gambhir and family,
RRM mills and processes basmati and non-basmati rice at its
facilities in Barara, Haryana.
RATNAWALI DAIRY: CARE Moves B- Debt Rating to Not Cooperating
-------------------------------------------------------------
CARE Ratings has migrated ratings on certain bank facilities of
Ratnawali Dairy Products LLP (RDP), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.59 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating moved to
ISSUER NOT COOPERATING
Category
Detailed Rationale and key rating drivers
CARE Ratings Ltd has been seeking information from RDP to monitor
the ratings vide e-mail communications/letters dated February 2,
2022, February 7, 2022, February 14, 2022, February 24, 2022, March
2, 2022, and numerous phone calls. However, despite CARE's repeated
requests, the firm has not provided the requisite information for
monitoring the ratings.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the ratings on the basis of the best available information
which however, in CARE Ratings Ltd's opinion is not sufficient to
arrive at a fair rating. The rating on RDP's bank facilities will
now be denoted as CARE B-; Stable; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating assigned to the bank facilities of Ratnawali Dairy
Products LLP (RDP) remain constrained on account of its nascent
stage of operations with net loss in FY20 (FY refers to period from
April 1 to March 31) and weak solvency position. The rating,
further, remain constrained on account of its presence in the
highly competitive and fragmented industry and constitution as a
partnership concern. The rating, however, remain favourable on
account of experienced partners with location advantage and easy
availability of raw-material and labour.
Detailed description of the key rating drivers
At the time of last rating on March 30, 2021, the following were
the rating weaknesses and strengths:
Key Rating Weaknesses
* Nascent stage of operations of the firm with net loss in FY20 and
weak solvency position: The firm started commercial operations from
September, 2018 and FY20 is first full year of operation. During
FY20, it has registered Total Operating Income (TOI) of INR10.70
crore, increased from INR5.11 crore in FY19 owing to full year of
operation as well as high demand. During 11MFY21, it has achieved
TOI of INR11.15 crore. Further, PBILDT margin of the firm stood low
at 0.50% in FY20 owing to high cost of milk and its presence in a
highly competitive and fragmented industry. Further, PBILDT margin
stood low owing to bonus given to milk suppliers. With low PBILDT
level along with high depreciation and interest expenses in initial
years of operations, it has registered net loss in FY20 as against
net profit in FY19. Further, GCA stood negative in FY20. The
capital structure of the firm stood leveraged with an overall
gearing of 25.06 times as of March 31, 2020, deteriorated from 3.63
times as on March 31, 2019 owing to net loss which eroded net-worth
base and high debt. The debt coverage indicators stood weak with
below unity interest coverage ratio and negative total debt to GCA
on account of low PBILDT level and negative GCA level.
* Seasonal nature of the milk processing industry: The dairy
industry is characterized by the short supply of milk during peak
of summers. The firm procures the milk during the winter season
when the milk is available in abundance and at low price which
leads to build up of inventory/finished goods mostly ghee.
Correspondingly, there is high requirement of funds during the peak
season i.e. winter months from SeptemberMay. It is mitigate to some
extent as the partners own seven Gaushala in Rajasthan which helps
the firm in its raw-material requirement.
* Competition from the organized and un-organized sector and
environmental risk and constitution as a partnership concern: The
firm faces competition in the dairy segment from other established
brands in the organized market. The competition gets fiercer with
presence of unorganized players leading to pricing pressures. Other
major dairy companies are also entering into the manufacturing of
value added milk products on account of increasing demand in the
domestic market. The group is exposed to environmental risk related
to epidemic, since its entire milk collection is from the milk
producers in Rajasthan. Constitution as a partnership concern with
moderate net worth base restricts its overall financial flexibility
in terms of limited access to external fund for any future
expansion plans. Furthermore, there is an inherent risk of
possibility of withdrawal of capital and dissolution of the firm in
case of death/insolvency of partner.
Key Rating Strengths
* Experienced partners: Mr. Vikas Choudhary, graduate by
qualification, has a decade of experience in the industry. Mr Shiv
Shankar Gupta has 20 years of experience in the dairy industry and
also owns Goras Parlour which is engaged in trading of GORAS
products i.e Milk and other dairy products. Further, the partners
are supported by a team of sales persons and C & F agents having an
experience in the field of marketing. Further, the partners have
also promoted S.V. foods which is engaged in the business of
packaging and marketing of food products like rice flakes poha,
papad, daliya, moong dal, cattle feed and etc since 2012.
* Location advantage with ease of availability of raw material and
labor: RDP's processing facility of dairy products is situated in
Rajasthan which has the second largest milk producing state in
India. In India, major production of milk comes from Uttar Pradesh
followed by Rajasthan, Madhya Pardesh, Gujarat and Andhra Pradesh.
Further, skilled labor is also easily available by virtue of being
situated in the Rajasthan belt of India. Also, the partners own
seven Gaushala in Rajasthan which will help the firm in its
raw-material requirement.
Jaipur-based (Rajasthan), Ratnawali Dairy Products LLP (RDP) was
formed in July 2017 as a Limited Liability Partnership. The firm
has undertaken a project for setting up a plant for manufacturing
and processing of dairy products with an installed capacity of 1
lakh liter per day and a cold storage with capacity of 50,000 litre
per day. RDP commenced its commercial operations from September 12,
2018 and currently dealing in sale of Milk, Ghee and buttermilk
under the brand name of "DHENUSAR" in Rajasthan, Delhi,
Maharashtra.
RICHA HOMES: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Richa Homes Private Limited
JV House, 1st Floor
Plot no. 746
D.S. Babrekar Marg
Dadar West Mumbai 400028
Insolvency Commencement Date: February 4, 2022
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: August 3, 2022
Insolvency professional: Manishkumar Patel
Interim Resolution
Professional: Manishkumar Patel
1, Vishram Apartment
LBS Road, Opp 3 Petrol Pump
Thane Maharashtra 400602
E-mail: manish@ipmanish.com
Last date for
submission of claims: February 18, 2022
RUBYKON MANUFACTURING: CRISIL Keeps D Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Rubykon
Manufacturing Company (RMC) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 13 CRISIL D (Issuer Not
Cooperating)
Foreign Letter 5.7 CRISIL D (Issuer Not
of Credit Cooperating)
Letter of Credit 0.1 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 6.7 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with RMC for
obtaining information through letters and emails dated January 22,
2022 and February 7, 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 RMC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RMC
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RMC continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Established in 2011 as a partnership firm by Mr. Ashok Mehta and
his wife Mrs. Bharti Mehta, RMC is engaged in manufacturing of 3
ply and 5 ply corrugated boxes and cardboard cartons widely ranging
in thickness, shapes and sizes. The firm has manufacturing plant
set up at Kala Amb, Himachal Pradesh.
RYTHU DAIRY: CRISIL Keeps B+ Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Rythu Dairy
Products Private Limited (Rythu) continue to be 'CRISIL B+/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B+/Stable (Issuer Not
Cooperating)
Long Term Loan 4.2 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Long Term 2.8 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with Rythu for
obtaining information through letters and emails dated January 22,
2022 and February 7, 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 Rythu, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on Rythu
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
Rythu continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Established in 2010 and based in Lakkavaram, West Godavari, Rythu
processes milk and milk products. The company is promoted by Mr.
Vijaya Kumar Mandava (Managing Director), Ms. Mandava Danalakshmi.
Ms. Mandava Pavani and Mr. Shanmukha Rao.
S P INFRA: CARE Moves B+ Debt Rating to Not Cooperating
-------------------------------------------------------
CARE Ratings has migrated ratings on certain bank facilities of S P
Infra (SPI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 32.08 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE BB-; Stable
and moved to ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd has been seeking information from S P Infra (SPI)
to monitor the rating vide e-mail communications/letters dated
October 5, 2021, October 7, 2021, October 22, 2021, October 29,
2021, November 8, 2021, November 17, 2021, November 30, 2021,
December 9, 2021, December 15, 2021, December 31, 2021, January 28,
2022, February 23, 2022, February 28, 2022, March 1, 2022, March 2,
2022, March 3, 2022, March 4, 2022 and numerous phone calls.
However, despite CARE's repeated requests, the firm has not
provided the requisite information for monitoring the ratings.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the ratings on the basis of the best available information
which however, in CARE Ratings Ltd's opinion is not sufficient to
arrive at a fair rating. The rating on SPI's bank facilities will
now be denoted as CARE B+; Stable; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating has been revised on account of non-availability of
information required to carry out rating activity. The ratings
assigned to the bank facilities of SPI takes into account
implementation and saleability risk associated with its real estate
project 'Siddeswar Paradise', stretched liquidity coupled with its
partnership nature of constitution and its presence in a cyclical
and highly fragmented real estate industry. However, the rating
derives strength from on the verge of completion of its real estate
project 'Siddheshwar Plaza' coupled with experienced promoters in
the real estate industry and location advantage of projects
"Siddheshwar Plaza" and "Siddheswar Paradise".
Detailed description of the key rating drivers
At the time of last rating on April 5, 2021, the following were the
rating strengths and weaknesses:
Detailed description of key rating drivers
Key Rating Weaknesses
* Project implementation and saleability risk associated with its
project 'Siddeswar Paradise': Project progress of Siddeswar
Paradise is as per the schedule and till January 31, 2021 SPI had
incurred 64.28% of total envisaged project cost and has received
booking for 71.97% of total units. However, it has received the
booking advance of INR31.04 crore which forms 46% of total sales
value of booked units against 64.28% of cost incurred reflecting
moderate receipt of advances against cost incurred and thereby risk
associated with timely receipt of remaining booking advances
remains.
* Constitution as a partnership firm: SPI being a partnership firm
is exposed to inherent risk of the partners' capital being
withdrawn at the time of contingency like dissolution of the firm
in case of death/insolvency of partner which may affect its
financial flexibility.
* Presence in a cyclical and highly fragmented real estate
industry: The life cycle of a real estate project is long and the
state of the economy at every point in time, right from land
acquisition to construction to actual delivery, has an impact on
the project. This capital-intensive sector is vulnerable to the
economic cycles. Currently, slowdown in sales and volatile input
costs has increased liquidity concerns for highly leveraged
players.
Key Rating Strengths
* On the verge of completion of project 'Siddheswar Plaza': The
project Siddheswar Plaza is on the verge of completion marked by
98.74%% of the total envisaged cost is already incurred till
January 31, 2021 and SPI is planning to complete the entire project
by the end of June, 2021. In Siddeswar Plaza till January 31, 2021
out of total 323 units, 241 unit are already booked which contains
75% of the total units and received INR28.80 crore in the form of
booking advances which remained 75% of the sale value of booked
units against the total cost incurred of 98.74%.
* Experienced partners: Mr. Manishbhai B. Pansuriya and Mr.
Sureshbhai B. Pansuriya jointly look after overall operation of the
firm and possess more than a decade of experience in real estate
industry through working with various real estate entities of
Vadodara based S P Group.
* Location advantage: SPI's both projects viz. "Siddheswar Plaza"
and "Siddheswar Paradise" are located at New VIP Road and Harni
Sama Link Road, Vadodara respectively which are one of the demanded
residential areas in the Vadodara city. Affordable property prices
and proximity to corporate offices of Vadodara are the major
catalysts driving the real estate market in nearby location.
Vadodara (Gujarat) based S P Infra (SPI) is a partnership firm
established in December 2015 by seven partners. During November
2016 the partnership deed was revised and currently the firm has
been managed by four partners named Mr. Manishbhai B. Pansuriya,
Mr. Sureshbhai B. Pansuriya, Mr. Pravinbhai B. Pansuriya and Mr.
Kishorbhai B. Pansuriya. SPI is a part of Vadodara based S P Group,
which is into real estate business for more than a decade. SPI is
currently executing two residential cum commercial project named
'Siddheshwar Plaza'
(PR/GJ/VADODARA/VADODARA/OTHERS/MAA02469/240418) with 120 flats
(including 60 3BHK flats and 60 2BHK flats) and 203 shops and
'Siddheshwar Paradise'
(PR/GJ/VADODARA/VADODARA/Others/MAA05517/060619) with 140 flats
(including 112 3BHK flats and 28 4BHK flats) and 256 shops at
Vadodara location. SPI has incurred 98.74% of total envisaged
project cost for "Siddheswar Plaza" project and 64.28% for
"Siddheswar Paradise" project till January 31, 2021.
SESHASAI SPINNING: CARE Reaffirms B+ Rating on INR15.83cr Loan
--------------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
Sri Seshasai Spinning Mills Private Limited (SSSMPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 15.83 CARE B+; Stable Reaffirmed
Detailed Rationale & Key Rating Drivers
The ratings assigned to the bank facilities of SSSMPL continues to
remain constrained on account of its small scale of operations,
leveraged capital structure and weak debt coverage indicators,
stretched liquidity. The ratings, however, continue to derive
strength from experienced promoters in manufacturing cotton yarn,
improved profitability margin during review period and Stable
outlook of cotton industry.
Key rating sensitivities
Positive Rating Factors
* Consistent increase in the company's scale of operations by more
than INR75.00 crores while improving its profitability margins
leads substantial increase in GCA on sustained basis
* Improvement in capital structure and debt coverage indicators
marked by overall gearing ratio below 2.00x and Total
debt/GCA by 8.00x respectively
* Improvement in inventory days up to 30 days leads substantial
increase in operating cycle
Negative Rating Factors
* Decline in profitability margins marked by PBILDT margin of less
than 7%
* Any un-envisaged debt funded capex/additional debt availed by the
company resulting in deterioration of solvency ratios
* Withdrawal of support extended by promoters in terms of unsecured
loans
Detailed description of the key rating drivers
Key Rating Weaknesses
* Small scale of operations: The company reported marginal growth
in its Total Operating Income (TOI) and remained small at INR44.26
crore during FY21 as against INR43.50 crore during FY20. The
improvement was on account of higher demand of products from
customers. Till February 2022, the company has achieved TOI of
INR62 crores. Leveraged capital structure and weak debt coverage
indicators Capital structure of the company has improved but
remained leveraged on back of low networth base marked by overall
gearing ratio of 49.62x as on March 31, 2021 as against 321.33x as
on March 31, 2020. As a result of leveraged gearing position, Debt
coverage indicators although improved but remained weak marked by
TDGCA of 16.71years and interest coverage of 1.52x during FY21 as
against 29.26 years and 1.33x respectively during FY20. The
improvement was on account of lower debt levels as well as improved
PBILDT in absolute terms.
Key Rating Strengths
* Experienced promoters in manufacturing cotton yarn: Mr. Jamili
Pardha Saradhi, the Managing Director of (SSSMPL), has experience
of more than three decades in the cotton industry. Through their
vast experience in the industry they have established good
relationship with customers and suppliers.
* Improved Profitability: Profit margins have improved during the
year. PBILDT Margin has improved to 14.13% during FY21 against
12.45% during FY20. The improvement was on account of decline in
material cost as well as power and fuel cost. Consequently, PAT
Margin has also improved and remained at 1.35% during FY21 as
against 0.29% during FY20.
* Stable outlook of cotton industry: Amongst all the cotton growing
countries of the world, India ranks number one in cotton
cultivation area spreading out to about 95 lakh hectares. The
purpose of ginning is to separate cotton fibres from the seed. The
ginning process is the most important mechanical treatment that
cotton undergoes before it is converted into yarns and fabrics. Any
damage caused to the quality of fibres during ginning cannot be
rectified later in the spinning or subsequent processes. Most of
the ginneries in India were in primitive condition and running with
poor efficiency. There are over 3500 factories in India dispersed
in nine major cotton- growing states. With these developments,
ginning infrastructure in the country seems to be well on its way
to secure a firm foundation. The cotton textile industry in India
can look forward to meet its major raw material requirements
through indigenous supply of clean cotton.
Liquidity: Stretched
The liquidity of the company remained stretched marked by higher
reliance on working capital borrowings to supports the higher
inventory holding period and elongated debtor collection period.
However, the cash accruals remained modest at INR2.14 crores as on
March 31, 2021 against the debt repayment of around INR1.20 crores
for FY22. The receivable for more than 6 months stood at INR1.19
crore as on March 31, 2021, which was increased from INR1.15 crore
as on March 31, 2020. The company largely funds its working capital
requirement through bank borrowings where average utilization of
fund based working capital limits remained high at around 98% ended
January 2022. Further, its cash & bank also stood low at INR0.37
crore as on March 31, 2021. Net cash flow from operations have
improved and remained at INR7.64 crores during FY21 which was due
to realization of funds from receivables.
Sri Seshasai Spinning Mills Private Limited (SSSMPL) was
incorporated on July 15, 2005 by Mr. Jamili Pardha Saradhi and his
family members in Guntur, Andhra Pradesh. The company is engaged in
the manufacturing of cotton yarn which finds its application
primarily in manufacturing of cotton clothes. SSSMPL manufactures
40s and 50s count yarns. The installed capacity of SSSMPL stood at
Approx. 17,160 spindles per day. SSSMPL procures around 25% of raw
material, being raw cotton, from associate entity i.e. Sri Balaji
and Company and Sri Sai Balaji in which directors of SSSMPL are
partners and balance raw cotton requirements are met through
dealers located at Andhra Pradesh and Telangana. The yarn is
supplied to different states including Maharashtra, Tamil Nadu and
Kerala.
SHAKTI BREEDING: CRISIL Keeps B Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shakti
Breeding India Private Limited (SBIPL) continue to be 'CRISIL
B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1.4 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 1.83 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 5.47 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SBIPL for
obtaining information through letters and emails dated January 22,
2022 and February 7, 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 SBIPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SBIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SBIPL continue to be 'CRISIL B/Stable Issuer Not Cooperating'.
Incorporated in 2011, SBIPL commenced commercial operations from
October 2012. It sells day-old chicks to farms and farmers across
India. SBIPL is promoted by Mr. Sunil Kumar, Mr. Azad Singh, Mr.
Balwinder Singh, and Mr. Amit Kumar.
SHANTI AGRO: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shanti Agro
Foods Private Limited (SAFPL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 24.50 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 1.46 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 3.04 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SAFPL for
obtaining information through letters and emails dated January 22,
2022 and February 7, 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 SAFPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SAFPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SAFPL continue to be 'CRISIL D Issuer Not Cooperating'.
SAFPL was established as a partnership firm, Shanti Agro Foods, in
2008 by Mr Sahil Verma and Mr Bishanbar Lal. In 2014, the business
operations were taken over by SAFPL with Mr Sahil Verma and Mr
Bishanbar Lal as directors. The company mills and processes basmati
and non-basmati rice. Its facility at Nilokheri in Karnal, Haryana,
has milling and sorting capacity of around 10 tonne per hour.
SHIKSHA PRASARINI: CRISIL Keeps B Debt Rating in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Shiksha
Prasarini Samiti Pt. Madan Mohan Malviya Vidya Mandir (SPS)
continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Fund- 1 CRISIL B/Stable (Issuer Not
Based Bank Limits Cooperating)
CRISIL Ratings has been consistently following up with SPS for
obtaining information through letters and emails dated January 31,
2022 and February 28, 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 SPS, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SPS
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SPS continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
SPS is a not-for-profit society, set up in 1978 by Mr. Shivnath
Yadav in Ghazipur (Uttar Pradesh). It is managed by Mr. Shivnath
Yadav, Mrs. Hem Prabha Singh and Mr. Ashutosh Kumar Rai. The
society runs several educational, vocational and training
institutes for the under privileged against tenders of the state
and central government under various schemes.
SINDHURA PAPER: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: M/s. Sindhura Paper Private Limited
D.No. 1-115, Lakshminagar H/O Marampalli (V)
Dwaraka Tirumala Mandal
AP 534202
IN
Insolvency Commencement Date: March 8, 2022
Court: National Company Law Tribunal, Amaravathi Bench
Estimated date of closure of
insolvency resolution process: September 3, 2022
Insolvency professional: Narala Varalakshmi
Interim Resolution
Professional: Narala Varalakshmi
1-8-588/29/A, Achhainagar
Baghlinngampally
Backside RTC Kalyana Mandapam
Hyderabad, Telangana 500044
E-mail: ip.varalakshmin@gmail.com
- and -
Sankalp Restructuring Private Limited
Unit 113, 1st Floor
Manjeera Trinity Corporate
KPHB Phase III, Kukatpally
Hyderabad 500072
E-mail: ip.sindhurasankalp@gmail.com
Last date for
submission of claims: March 22, 2022
VENKATA RAJESH: CRISIL Keeps B Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Venkata
Rajesh Poultries Private Limited (VRPPL) continue to be 'CRISIL
B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12 CRISIL B/Stable (Issuer Not
Cooperating)
Long Term Loan 11 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with VRPPL for
obtaining information through letters and emails dated January 22,
2022 and February 28, 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 VRPPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VRPPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
VRPPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Established in 2005, VRPPL is a producer and supplier of eggs in
Guntur (Andhra Pradesh). The company is promoted by Mr. Purna
Rajesh and family.
VIAAN INDUSTRIES: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Viaan Industries Limited
Saisha Bungalow No. 10/87
Mhada, SVP Nagar
Janki Devi School Road
Versova, Andheri West
Mumbai City, MH 400053
IN
Insolvency Commencement Date: March 11, 2022
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: September 7, 2022
Insolvency professional: Mr. Prakash Dattatraya Naringrekar
Interim Resolution
Professional: Mr. Prakash Dattatraya Naringrekar
503-A, Blue Diamond CHS Ltd
Chincholi Bunder
Link Road Junction
Malad West, Mumbai 400064
E-mail: prakash03041956@gmail.com
viaan.cirp@gmail.com
Last date for
submission of claims: March 25, 2022
=====================
N E W Z E A L A N D
=====================
GEVIR LIMITED: Court to Hear Wind-Up Petition on March 23
---------------------------------------------------------
A petition to wind up the operations of Gevir Limited will be heard
before the High Court at Napier on March 23, 2022, at
2:15 a.m.
Moore Markhams Hawkes Bay Limited filed the petition against the
company on Jan. 26, 2022.
The Petitioner's solicitor is:
Jo Welson
Sainsbury Logan & Williams
61 Tennyson Street
Napier 4110
MINT RENTALS: Court to Hear Wind-Up Petition on May 13
------------------------------------------------------
A petition to wind up the operations of Mint Rentals Limited will
be heard before the High Court at Auckland on May 13, 2022, at
10:00 a.m.
NZGT (FP) Trustee Limited (trustee for FP Ignition Trust 2011-1 New
Zealand trading as FleetPartners Group) filed the petition against
the company on Jan. 31, 2022.
The Petitioner's solicitor is:
Brett Leeson Martelli
HC Legal Limited
Level 1, 19 Mauranui Avenue
Newmarket, Auckland
MIRO DEVELOPMENTS: Creditors' Proofs of Debt Due on April 22
------------------------------------------------------------
Creditors of Miro Developments Limited, which is in voluntary
liquidation, are required to file their proofs of debt by April 22,
2022, to be included in the company's dividend distribution.
The company was placed in liquidation by resolution of shareholders
on March 13, 2022.
The company's liquidators can be reached at:
Benjamin Francis
Simon Dalton
Gerry Rea Partners
PO Box 3015
Auckland
VERDEBLU LIMITED: Creditors' Proofs of Debt Due on May 13
---------------------------------------------------------
Creditors of Verdeblu Limited are required to file their proofs of
debt by May 13, 2022, to be included in the company's dividend
distribution.
Rhys Cain and Larissa Logan of EY were appointed joint and several
liquidators of Verdeblu Limited by order of the High Court at
Auckland, on March 11, 2022. The applicant creditor was Plumbing
World Limited.
The company's liquidators can be reached at:
EY
2 Takutai Square
Auckland CBD, Auckland 1010
Y & Z SUPERMARKET: Creditors' Proofs of Debt Due on April 22
------------------------------------------------------------
Creditors of Y & Z Supermarket Limited (previously trading as Tai
Ping Pakuranga) are required to file their proofs of debt by April
22, 2022, to be included in the company's dividend distribution.
The company was placed in liquidation by the High Court at
Auckland, on March 11 on the application of Sunmax Trading
Limited.
The company's liquidators can be reached at:
Benjamin Francis
Simon Dalton
Gerry Rea Partners
PO Box 3015
Auckland
=====================
P H I L I P P I N E S
=====================
RURAL BANK OF MAHAPLAG: BSP Closes Down Leyte-Based Rural Bank
--------------------------------------------------------------
Manila Times reports that the Bangko Sentral ng Pilipinas (BSP) has
closed and placed under the receivership of Philippine Deposit
Insurance Corp. (PDIC) a rural bank in Leyte. In a weekend
circular, the PDIC said that the Monetary Board of the central bank
had ordered the liquidation of Rural Bank of Mahaplag in a decision
dated March 10 this year.
The same resolution, the state-run deposit insurer added,
instructed it to act as receiver and proceed with the bank's
takeover and liquidation, Manila Times relates.
According to Manila Times, the PDIC bulletin said Rural Bank of
Mahaplag's office address is Trasmonte Street, Poblacion, Mahaplag,
Leyte province. It took over the bank's assets, records and affairs
on March 11 of this year.
It was the fourth bank this year to be placed under the
government-owned deposit insurer's receivership. PDIC-acquired
banks' depositors were entitled to compensation up to the maximum
insurance coverage of PHP500,000.
Manila Times relates that PDIC said a bank that has been placed in
liquidation will not be allowed to reopen or resume banking
operations as required by its charter or Republic Act 3591.
"Furthermore, Section 12 thereof expressly provides that banks
closed by the Monetary Board shall no longer be rehabilitated," it
continued.
The state-run insurer also said that the bank's directors,
officials and stockholders' powers, functions, and duties were
terminated once the bank was placed under liquidation, Manila Times
relays.
As a result, the bank's directors, officers, and investors were
barred from interfering with the bank's assets, papers, or affairs
in any way.
Manila Times adds that PDIC also said that all of the bank's assets
were presumed to be in the receiver's custodia legis, meaning they
were not subject to attachment, garnishment, execution, levy, or
any other court action.
In 2021, the Monetary Board closed 13 banks and placed them all
under the supervision of the PDIC.
=================
S I N G A P O R E
=================
ARQIT PTE: First Creditors' Meeting Set for March 31
----------------------------------------------------
Arqit Pte Ltd will hold a first meeting for its creditors on March
31, 2022, at 4:15 p.m., via video-conference and/or
tele-conference.
Agenda of the meeting includes:
a. to lay before the creditors a full statement of the affairs
of the company, showing the assets and liabilities of the
company, together with a list of creditors and the estimated
amount of their claims;;
b. to appoint Saw Meng Tee as the Liquidator for the purpose of
the winding up; and
c. to consider and if thought fit, appoint a Committee of
Inspection ("COI") for the purpose of winding up the
Company; and
d. to discuss any other business.
Mr. Saw Meng Tee of EA Consulting on March 11, 2022, was appointed
as provisional liquidator of the company.
ECOWISE: Flags Material Uncertainty to Continue as Going Concern
----------------------------------------------------------------
The Business Times reports that chased by several banks for
payments and unable to pay the security deposit for extending its
lease, ecoWise said in a filing on the Singapore Exchange (SGX) on
March 16 that these developments indicate "material uncertainty" of
the company's ability to continue operating.
The filing from the environmental solutions provider was in
response to queries from the bourse operator on the board's
assessment of the company's ability to continue operating as a
going concern, BT says.
It had announced through a series of filings, after the release of
its financial results on March 1 this year, that several banks in
Malaysia had been chasing ecoWise for payment.
According to BT, MayBank, Al Rajhi Bank and Affin Bank had sent
letters of demand or reminders to ecoWise's subsidiaries requesting
payments totalling over MYR3 million (SGD974,927) that are
overdue.
In its latest update on March 16, the embattled company said that
Public Bank had sent 3 letters of reminder over the past month over
instalments that amounted to MYR11,524 that were due in February
this year.
BT relates that Affin Bank had also sent a reminder letter to the
company to pay MYR89,000 that is due by Feb. 28, and another bill
totalling MYR2.7 million which will mature in March and April this
year. The bank has stopped any further use of ecoWise's trade
finance facility until the overdue amount has been repaid.
The company also said that Al Rajhi Bank has agreed to extend the
deadline for it to pay an outstanding amount of MYR407,841.10 to
March 18 this year, the report relays.
"The group is in discussions with the financial institutions and
will update shareholders as and when there are material
developments on this matter. The group will also explore other
measures to manage the current cash flow situation of the group and
ensure the sustainability of the group's business," the filing.
According to BT, EcoWise also said that its board has invited
external professional firms to help the company negotiate with
banks and assess the longer-term viability of various aspects of
its business.
SGX had also asked ecoWise for more details on its inability to pay
a security deposit of S$691,200 to the National Environment Agency
(NEA) for extending its existing lease on a property.
EcoWise had first notified SGX, in a filing on March 3, that the
security deposit had not been paid to NEA even though the lease
renewal was signed on Nov. 17 last year, BT relays.
In its response to these queries on March 16, the company said that
the lease is for its recycling plant located at a site in Sarimbun
Recycling Park in Lim Chu Kang. NEA and ecoWise agreed to extend
the lease by another 17 months from Jan 15 this year, and a
security deposit equivalent to 36 months had to be paid to NEA.
EcoWise had been using this recycling plant to recycle
horticultural and wood waste generated within Singapore for more
than 10 years.
However, the company said it is unable to make the payment due to
its current financial position, the report relays.
BT says NEA has agreed to extend the deadline for the company to
pay the security deposit by March 28 this year, and ecoWise is
discussing with an insurance broker that could help them secure an
insurance company to pay the security deposit in the form of an
insurance performance bond to NEA.
When asked how ecoWise business operations would be affected if it
is unable to make payment, it said in the March 16 filing that the
company would have to find alternative sources of raw materials for
its renewable energy business, which will increase its cost of
operations, as the raw materials are currently sourced from this
recycling plant.
"If the group is not able to procure such alternative sources of
raw materials, it will not be able to fulfil its contracts with its
customers and may be subject to penalties from these customers,"
read the filing, BT relays.
Shares of ecoWise are currently suspended from trading.
ecoWise Holdings Limited, an investment holding company, provides
resource recovery, renewable energy, and integrated environmental
solutions in Singapore, Malaysia, Australia, the People's Republic
of China, and internationally.
HATTEN LAND: Can Repay MYR206MM Borrowings With Unsold Properties
-----------------------------------------------------------------
The Business Times reports that Catalist-listed Hatten Land stated
that the borrowings of MYR206 million (SGD66.4 million) due in a
year could be repaid as its unsold, completed properties are worth
a "substantial value".
In its response to queries from the Singapore Exchange (SGX),
Hatten Land said on March 11 that the estimated market value of its
development properties - excluding those of Gold Mart - stood at
MYR780.8 million as at June 30, 2021, BT relays.
According to the report, the company said sale of its development
properties to generate cash flow is its priority to repay loans and
borrowings amounting to MYR206 million recorded as current
liabilities in the financial statements for the quarter to December
2021.
The completion of the disposal of Gold Mart will also generate
gross proceeds of about US$60 million, which will allow it to
redeem some loans and borrowings.
The company has not, however, seen the payment for the proposed
sale coming from counterparty Tayrona Capital Group, which has
nonetheless provided assurance to Hatten Land that it remains keen
and committed to completing the deal on Gold Mart, BT relays.
Also, it is confident it could add new streams of revenue from new
business initiatives such as blockchain technology, and its
property and hospitality activities would improve as the economy
reopens.
On concerns of whether its current assets are adequate to meet its
short-term liabilities of nearly MYR1.1 billion, Hatten Land said
it has current assets amounting to MYR1.2 billion, including
MYR11.7 million in cash and MYR446.7 million worth of development
properties, BT discloses.
BT relates that the company said it is working to monetise these
properties as well as to accelerate collection of the current trade
and other receivables of MYR166.2 million.
The current liabilities could decline by MYR486.3 million when the
disposal of Gold Mart is completed, it noted.
"The company has a repayment plan with the creditors and certain
bankers, and the company is on track to fulfilling these
obligations," it said.
Following its assessment, Hatten Land changed the payment term for
some property buyers, and therefore these current trade receivables
were turned into non-current ones due to the continuing challenges
affecting the property market in Malacca and uncertainties brought
by the pandemic, BT reports.
BT says the company assured that its non-current trade receivables
do not have material concentration risk from a particular debtor as
many individual property buyers are involved.
"As these units can be relisted for sale in the event that a
purchaser decides to terminate the purchase of the units if the
bank loan or financing application is not granted, the board does
not foresee any issues with the collection of the outstanding trade
receivables."
Similarly, the impairment loss recorded in the latest financials
has risen as buyers had revoked the sales and purchase agreement,
but the apartments related to this MYR7.6 million impairment could
be relisted for sale, Hatten Land explained, adds BT.
Hatten Land Limited operates as a property developer. The Company
develops malls, hotels, and residential properties. Hatten Land
serves customers in Singapore and Malaysia.
HONG SHENG: Court Enters Wind-Up Order
--------------------------------------
The High Court of Singapore entered an order on March 4, 2022, to
wind up the operations of Hong Sheng Technology Pte. Ltd.
The company's liquidators are:
Lau Chin Huat
Yeo Boon Keong
Technic Inter-Asia
50 Havelock Road #02-767
Singapore 160050
HONOS SHIPPING: Creditors' Proofs of Debt Due on April 17
---------------------------------------------------------
Creditors of Honos Shipping Pte. Ltd are required to file their
proofs of debt by April 17, 2022, to be included in the company's
dividend distribution.
The company's liquidator can be reached at:
Lau Chin Huat
c/o 6 Shenton Way
OUE Downtown 2, #33-00
Singapore 068809
S E SHIP: Court to Hear Wind-Up Petition on March 25
----------------------------------------------------
A petition to wind up the operations of S E Ship Management Pte Ltd
will be heard before the High Court of Singapore on March 25, 2022,
at 10:00 a.m.
The Petitioner's solicitors are:
Clasis LLC
12 Marina Boulevard, #30-03
Marina Bay Financial Centre Tower 3
Singapore 018982
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
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Editors.
Copyright 2022. All rights reserved. ISSN: 1520-9482.
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