/raid1/www/Hosts/bankrupt/TCRAP_Public/220407.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, April 7, 2022, Vol. 25, No. 64
Headlines
A U S T R A L I A
ADRIAN'S METAL: First Creditors' Meeting Set for April 12
BLUELINE SERVICES: First Creditors' Meeting Set for April 14
HEMP HULLING: Second Creditors' Meeting Set for April 14
LIBERTY FUNDING 2022-1: Moody's Gives (P)Ba2 Rating to Cl. F Notes
MERCHANT OVERSEAS: First Creditors' Meeting Set for April 27
MILO PROJECTS: Second Creditors' Meeting Set for April 12
PEARLLARGO PTY: Second Creditors' Meeting Set for April 13
C H I N A
CENTRAL CHINA REAL: Moody's Lowers CFR to B3, Outlook Remains Neg.
KAISA GROUP: In Strategic Tie-Up With State-Controlled Builder
YETDZ DEV: S&P Assigns 'BB+' Rating on New USD Unsecured Bonds
I N D I A
AADI BEST CONSORTIUM: Insolvency Resolution Process Case Summary
AIRONA TILES: ICRA Keeps B+ Debt Ratings in Not Cooperating
APEX FROZEN: ICRA Withdraws B+ Rating on INR45cr Cash Loan
APEX PREMISES: ICRA Moves B+ Debt Ratings to Not Cooperating
ARYAVRAT TRADING: Insolvency Resolution Process Case Summary
BBG INFRASTRUCTURE: ICRA Assigns B Rating to INR0.25cr Cash Loan
BEARDSELL LIMITED: ICRA Reaffirms MB+ Fixed Deposit Rating
BICERO TILES: ICRA Keeps B+ Debt Ratings in Not Cooperating
BYRNIHAT COAL: Insolvency Resolution Process Case Summary
CONCEPT BIOSCIENCES: Insolvency Resolution Process Case Summary
CREST STEEL: Nithia Capital Acquires Steel Maker for INR600 crore
GDJD GROUP: ICRA Assigns B+ Rating to INR15cr LT/ST Loan
GEMSTONE CERAMIC: ICRA Withdraws B+ Rating on INR6.80cr Term Loan
GRESS CERAMICA: ICRA Keeps B- Debt Ratings in Not Cooperating
GURU NANAK: ICRA Keeps B+ Debt Rating in Not Cooperating Category
KALYAN JEWELLERS: Moody's Assigns First Time B2 Corp Family Rating
KKRC INFRASTRUCTURE: ICRA Withdraws B+ Rating on INR50cr Loans
KOBE SUSPENSION: ICRA Keeps B+ Debt Ratings in Not Cooperating
KRANTHI EDIFICE: ICRA Keeps D Debt Ratings in Not Cooperating
MEH INDIA: ICRA Keeps B+ Debt Rating in Not Cooperating Category
PAYNE REALTORS: ICRA Keeps D Debt Ratings in Not Cooperating
RELIABLE SPACES: ICRA Keeps B+ Debt Ratings to Not Cooperating
SAEL LIMITED: Moody's Gives (P)Ba3 Rating on New USD Secured Notes
SAISONS TRADE: ICRA Keeps D Rating in Not Cooperating Category
SANT FOODS: ICRA Keeps B Debt Rating in Not Cooperating Category
SATVA INFRATECH: Insolvency Resolution Process Case Summary
SATYA BHASKARA: ICRA Keeps B+ Debt Ratings in Not Cooperating
SKS POWER: ICRA Moves D Debt Ratings to Not Cooperating Category
SNS STARCH LIMITED: Insolvency Resolution Process Case Summary
SUPERTECH: Buyers' Interests Will Be Shielded, Supreme Court Says
TEEKAY MARINES: ICRA Keeps B Debt Ratings in Not Cooperating
THREE C: ICRA Keeps D Debt Rating in Not Cooperating Category
VIJAYA RAJA: ICRA Keeps B+ Debt Rating in Not Cooperating
VIKAS FILAMENTS: ICRA Keeps B+ Debt Ratings in Not Cooperating
VIKAS KRISHI: ICRA Keeps B+ Debt Rating in Not Cooperating
VINAYAK INTERNATIONAL: ICRA Keeps D Ratings in Not Cooperating
WANDERLAND REAL: ICRA Keeps B Issuer Rating in Not Cooperating
I N D O N E S I A
PLAZA INDONESIA: Moody's Withdraws 'Ba2' Corporate Family Rating
PT JAPFA COMFEED: S&P Affirms 'BB-' ICR & Alters Outlook to Neg.
M A L A Y S I A
1MDB: U.S. Jury Begins Deliberations in Ex-Goldman Banker's Trial
N E W Z E A L A N D
AQUA SYNERGY: Damien Mitchell Grant Appointed as Receiver
BOULD HOLDINGS: Creditors' Proofs of Debt Due on April 29
CAMERONS CLOTHING: Owes NZD900,000 to Nearly 100 Creditors
ORAKA TECHNOLOGIES: Creditors' Proofs of Debt Due on July 29
OTAGO HOMES: Building Firm Placed Into Liquidation
P H I L I P P I N E S
PHILIPPINE CROP: DOF Revives Plan to Convert PCIC Into Reinsurer
S I N G A P O R E
INDIA INVESTMENTS: Creditors' Proofs of Debt Due on May 6
ROTARY PILING: Court to Hear Wind-Up Petition on April 22
XIHE HOLDINGS: Court Enters Wind-Up Order
S R I L A N K A
SRI LANKA: Revokes Emergency With Rajapaksa Facing Calls to Quit
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A U S T R A L I A
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ADRIAN'S METAL: First Creditors' Meeting Set for April 12
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Adrian's
Metal Management Pty Ltd, trading as Adrian's Scrap Metal and Jims
Scrap Metal, will be held on April 12, 2022, at 2:00 p.m. via
telephone.
David James Hambleton of Rodgers Reidy was appointed as
administrator of Adrian's Metal on March 31, 2022.
BLUELINE SERVICES: First Creditors' Meeting Set for April 14
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Blueline
Services Pty Ltd will be held on April 14, 2022, at 10:00 a.m. via
virtual facilities.
Bradd William Morelli and Stewart William Free of Jirsch Sutherland
were appointed as administrators of Blueline Services on April 4,
2022.
HEMP HULLING: Second Creditors' Meeting Set for April 14
--------------------------------------------------------
A second meeting of creditors in the proceedings of Hemp Hulling Co
(QLD) Pty Ltd has been set for April 14, 2022, at 11:00 a.m. via
Virtual Meeting via Microsoft Teams.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by April 13, 2022, at 4:00 p.m.
David Lewis Clout of David Clout & Associates was appointed as
administrator of Hemp Hulling on March 10, 2022.
LIBERTY FUNDING 2022-1: Moody's Gives (P)Ba2 Rating to Cl. F Notes
------------------------------------------------------------------
Moody's Investors Service has assigned the following provisional
ratings to the notes to be issued by Liberty Funding Pty Ltd in
respect of Liberty Series 2022-1.
Issuer: Liberty Series 2022-1
AUD350.00 million Class A1a Notes, Assigned (P)Aaa (sf)
AUD150.00 million Class A1b Notes, Assigned (P)Aaa (sf)
AUD76.50 million Class A2 Notes, Assigned (P)Aaa (sf)
AUD14.00 million Class B Notes, Assigned (P)Aa1 (sf)
AUD9.00 million Class C Notes, Assigned (P)Aa3 (sf)
AUD6.00 million Class D Notes, Assigned (P)A2 (sf)
AUD8.00 million Class E Notes, Assigned (P)Baa3 (sf)
AUD5.50 million Class F Notes, Assigned (P)Ba2 (sf)
The AUD6.00 million Class G Notes are not rated by Moody's.
The transaction is a securitisation of Australian residential
mortgages loans originated and serviced by Liberty Financial Pty
Ltd (Liberty, unrated). The transaction features a one-year
substitution period, whereby additional loans can be sold into the
portfolio on a monthly basis, subject to substitution parameters
and portfolio performance triggers being met.
RATINGS RATIONALE
The provisional ratings take into account, among other factors:
Evaluation of the underlying receivables and their expected
performance;
Evaluation of the capital structure and credit enhancement
provided to the notes;
The liquidity facility in the amount of 2.0% of the notes balance
subject to a floor of AUD600,000;
The experience of Liberty as the servicer;
Presence of Perpetual Trustee Company Limited as the back-up
servicer.
Moody's MILAN credit enhancement (MILAN CE) for the collateral pool
is 6.3%, while the expected loss is 0.80%.
MILAN CE represents the loss Moody's expect the portfolio to suffer
in a severe recessionary scenario, and does not take into account
structural features of the transaction. The expected loss
represents a stressed, through-the-cycle loss relative to
Australian historical data.
The one-year substitution period in this deal could lead to a
deterioration in the pool quality over time. The risk of
deterioration arises mainly because there is no minimum seasoning
requirement among the substitution parameters applicable to the
substitution portfolio. In other respects, substitution parameters
are closely aligned with the parameters of the pool as of the
closing date. Substitution parameters limit, among others,
proportions of loans with adverse credit, alt-doc verification, and
LVRs above 80% and 90%. Moody's has considered the risk posed by
the substitution, and in particular lack of minimum seasoning
requirement, at the MILAN CE and expected loss levels.
The key transactional features are as follows:
Class A1 and Class A2 notes benefit from 20.0% and 7.8% note
subordination respectively.
The notes benefit from an excess spread reserve available to cover
losses arising from the portfolio and shortfalls in interest
payments on the notes. Unfunded at closing, the reserve will build
up through the trapping of excess spread up to a maximum of 0.30%
of the initial invested amount of the notes (AUD1,875,000).
Following the end of the substitution period, the notes will
initially be repaid sequentially. Once stepdown conditions are met,
all notes, including Class G notes, will receive a pro-rata share
of principal payments. The stepdown conditions which include, among
others, the payment date falling at least one year after the most
recent monthly substitution and absence of charge offs.
The key features of the initial mortgage loan pool are as follows:
The portfolio has a weighted-average seasoning of 48.4 months.
The portfolio has a scheduled LTV ratio of 63.4%, with a
relatively high proportion of loans with a scheduled LTV ratio
above 80.0% (15.1%) and above 90% (10.2%).
Around 21.9% of the loans in the portfolio were extended to
self-employed borrowers.
5.6% of the loans in the portfolio were extended on an alternative
documentation basis.
The portfolio contains 5.0% exposure with respect to borrowers
with prior credit impairment (default, judgment or bankruptcy).
Moody's assesses these borrowers as having a significantly higher
default probability.
Methodology Underlying the Rating Action:
The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
February 2022.
Factors that would lead to an upgrade or downgrade of the ratings:
Up
Levels of credit protection that are greater than necessary to
protect investors against current expectations of loss could lead
to an upgrade of the ratings. Moody's current expectations of loss
could be better than its original expectations because of fewer
defaults by underlying obligors or higher recoveries on defaulted
loans. The Australian job market and the housing market are primary
drivers of performance.
Down
A factor that could lead to a downgrade of the notes is
worse-than-expected collateral performance. Other reasons for
performance worse than Moody's expects include poor servicing,
error on the part of transaction parties, a deterioration in credit
quality of transaction counterparties, fraud and lack of
transactional governance.
MERCHANT OVERSEAS: First Creditors' Meeting Set for April 27
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Merchant
Overseas Logistics Pty Ltd will be held on April 27, 2022, at 12:00
p.m. via virtual meeting technology.
Andrew Schwarz and Jon Howarth of AS Advisory were appointed as
administrators of Merchant Overseas on March 28, 2022.
MILO PROJECTS: Second Creditors' Meeting Set for April 12
---------------------------------------------------------
A second meeting of creditors in the proceedings of Milo Projects
Pty Ltd has been set for April 12, 2022, at 4:30 p.m. Zoom
Teleconference Facilities.
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 April 8, 2022, at 5:00 p.m.
David Ian Mansfield and Robert Woods of Deloitte Financial Advisory
were appointed as administrators of Milo Projects on March 4,
2022.
PEARLLARGO PTY: Second Creditors' Meeting Set for April 13
----------------------------------------------------------
A second meeting of creditors in the proceedings of Pearllargo Pty
Ltd has been set for April 13, 2022, at 10:00 a.m. via virtual
meeting.
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 April 12, 2022, at 4:00 p.m.
Malcolm Field of SV Partners was appointed as administrator of
Pearllargo Pty on March 9, 2022.
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C H I N A
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CENTRAL CHINA REAL: Moody's Lowers CFR to B3, Outlook Remains Neg.
------------------------------------------------------------------
Moody's Investors Service has downgraded Central China Real Estate
Limited's (CCRE) corporate family rating to B3 from B1, and its
senior unsecured rating to Caa1 from B2.
The outlook remains negative.
"The downgrade reflects CCRE's weakened liquidity and heightened
refinancing risks in view of its depleted cash position and
weakened access to capital market funds," says Kaven Tsang, a
Moody's Senior Vice President.
The company's heavy exposure to the offshore bond market, which
represented around 70% of its total reported debt as of December
2021, also made its liquidity vulnerable to the volatility of the
market.
"The negative outlook reflects the uncertainties over the company
ability to raise new funding to support its business plan, restore
its liquidity and address its refinancing needs," adds Tsang.
RATINGS RATIONALE
Moody's has changed its assessment of CCRE's liquidity to weak from
adequate, in view of the company's depleted cash position,
declining contracted sales and constrained access to funding.
The agency also assesses that the company has to raise new funding,
including asset disposal, to support its operation and refinancing
needs in the next 12-18 months.
CCRE will have USD bonds of $500 million due in August 2022 and
$300 million due in April 2023. Given the company's weakened access
to the offshore bond market, which is a major source of its
funding, it is unlikely that the company can issue new offshore
bonds to refinance the maturing bonds.
The use of internal resources to repay the debt will exacerbate the
company's liquidity pressure. Moody's expects the company to scale
down its land acquisitions and developments, as well as control its
expenses to preserve liquidity for debt servicing. Moody's also
expects CCRE to maintain its access to onshore bank loans. However,
such measures may not be sufficient to address the company's
liquidity pressure.
CCRE's unrestricted cash dropped to RMB5.9 billion as of the end of
2021 from RMB22.6 billion as of December 2020, as the company
repaid around RMB10 billion of bonds amid the difficult capital
market conditions. Accordingly, the company's unrestricted
cash/short-term debt declined to 87% from 148% over the same
period. The company's total debt also reduced to RM21.9 billion as
of December 2021 from RMB31.3 billion as of December 2020.
CCRE's gross contracted sales fell 12% to RMB60 billion in 2021 due
to the weak operating conditions and the impact of flooding and the
coronavirus outbreak in Henan province.
Moody's expects CCRE's gross contracted sales will decline further
to RMB45 billion-RMB50 billion in 2022 because of the weak market
sentiment, uncertain demand in low-tier cities, and the company's
plan to scale down its operation.
Declining contracted sales will reduce the company's cash flow and
liquidity. It will also weaken revenue recognition in the next 1-2
years. The company's profit margin could also contract to 13%-14%
over the same period as the company may have to lower selling
prices to push sales.
However, CCRE's debt reduction will lower its interest expenses.
Accordingly, its EBIT/interest coverage would stay at 2.2x-2.3x in
the next 1-2 years, largely unchanged from 2.3x in 2021.
CCRE's B3 CFR continues to reflect its leading market position and
long operating track record in Henan province. However, the
company's geographic concentration in Henan limits its operational
flexibility and exposes it to regional economic and regulatory
risks. The B3 CFR is also constrained by the company's weakened
liquidity and access to the offshore bond market, a major source of
the company's funding.
CCRE's senior unsecured bond rating is one notch lower than its CFR
because of the risk of structural subordination. This subordination
risk reflects the fact that most of CCRE's claims are at the
operating subsidiaries and have priority over claims at the holding
company in a bankruptcy scenario. In addition, the holding company
lacks significant mitigating factors for structural subordination.
As a result, 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 taken considered CCRE's concentrated ownership by its
controlling shareholder, Mr. Wu Po Sum, who had a 69.64% stake in
the company as of June 30, 2021. The company's provision of
financial guarantees to related parties will also increase its
contingent liabilities and the risk of potential fund leakages.
Moody's has also considered the presence of special committees —
the audit and remuneration committees — that are chaired by
independent nonexecutive directors to oversee corporate governance;
and the application of the Listing Rules of the Hong Kong Stock
Exchange and the Securities and Futures Ordinance in Hong Kong SAR,
China in governing related-party transactions.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade of CCRE's ratings is unlikely over the next 12 months,
given the negative outlook.
However, Moody's could change the outlook to stable if CCRE
improves its liquidity and access to funding; balances its funding
channels, with a lower reliance on offshore funding; and maintains
stable sales, profitability and credit metrics through the next
12-18 months.
On the other hand, Moody's could downgrade CCRE's ratings if the
company is unable to restore its liquidity in the next 1-2 months,
or its access to funding and its liquidity deteriorate further.
The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in January 2018.
Founded in 1992, Central China Real Estate Limited (CCRE) is a
leading property developer in Henan province in China. As of
December 31, 2021, the company's land bank totaled 53.45 million
square meters in gross floor area (GFA).
KAISA GROUP: In Strategic Tie-Up With State-Controlled Builder
--------------------------------------------------------------
Bloomberg News reports that Kaisa Group Holdings Ltd. dollar bonds
rallied after the defaulted developer unveiled a strategic tie-up
with a state-controlled builder and one of China's major bad-debt
managers, as the government works to contain the sector's cash
crunch.
According to Bloomberg, some notes were on pace for their biggest
gains in months as Kaisa announced the pact with China Merchants
Shekou Industrial Zone Holdings Co. and China Great Wall Asset
Management Co. to develop real estate, tourism and other businesses
in an area including Hong Kong and Macau. China's state-controlled
distressed-asset firms have been moving to support some developers
at the urging of Beijing.
The Kaisa announcement and policy steps "could mean overall
sentiment for the sector is turning," said Wonnie Chu of Gaoteng
Global Asset Management Ltd, the report relays.
Meanwhile Chinese high-yield dollar bonds rose at least 2 cents on
the dollar, credit traders said, set for the longest uptrend in 16
months. A Bloomberg gauge of Chinese real estate firms rose 3.2%
to a six-week high.
About Kaisa Group
Kaisa Group Holdings Ltd engages in real estate development in
China, including urban redevelopment projects in the GBA. As of
June 30, 2021, the company's land bank comprised an aggregate gross
floor area of 31.1 million square meters of saleable resources
across over 50 cities in China.
As recently reported in the Troubled Company Reporter-Asia Pacific,
Fitch Ratings has withdrawn Kaisa Group Holdings Limited's
Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'RD' and
senior unsecured rating of 'C' with a Recovery Rating of 'RR4'.
Fitch is withdrawing the ratings as Kaisa has chosen to stop
participating in the rating process. Therefore, Fitch will no
longer have sufficient information to maintain the ratings.
Accordingly, Fitch will no longer provide ratings or analytical
coverage for Kaisa.
YETDZ DEV: S&P Assigns 'BB+' Rating on New USD Unsecured Bonds
--------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' long-term issue rating to the
U.S. dollar-denominated senior unsecured bonds proposed by Yangzhou
Economic and Technological Development Zone Development (Group) Co.
Ltd. (YETDZ Dev. Group; BB+/Stable/--). The issue rating is subject
to its review of the final issuance documentation.
YETDZ Dev. Group intends to use the net proceeds of the proposed
notes to refinance existing indebtedness in accordance with the
Green Finance Framework. The company, a Yangzhou-based local
government financing vehicle (LGFV), is responsible for municipal
construction, primary land development, and resettlement housing.
S&P said, "We equalize the issue rating on the proposed bonds with
the issuer credit rating on YETDZ Dev. Group. This is because the
ratio of the company's consolidated secured debt and subsidiaries'
unsecured debt (including guarantees provided to other state-owned
enterprises in Yangzhou) is 30.7% as of Sept. 30, 2021. That is
below 50%, our threshold for notching down an issue rating.
"We estimate YETDZ Dev. Group's ratio of funds from operations to
debt will be close to zero in 2022. The company's less than
adequate liquidity profile is driven by its large debt maturity
within the next 12 months. But liquidity should improve upon the
refinancing of its maturing offshore U.S. dollar notes. The
company's liquidity needs are also supported by good access to
credit markets and bank financing to replenish its cash sources,
benefiting from its role as one of the key LGFVs of the Yangzhou
government.
"The stable outlook on YETDZ Dev. Group reflects our expectation
that Yangzhou's continued strong economic development and gradually
maturing infrastructure system will allow the city to moderate its
budget deficit and slow down the increase of its debt burden.
"The stable outlook also reflects our expectation that the
likelihood of extraordinary government support to YETDZ Dev. Group
will remain extremely high over the next 24 months. The company is
the second largest LGFV in Yangzhou by asset size and the sole
platform for primary land development and major infrastructure
construction within the economic zone. The Yangzhou government has
a track record of providing timely ongoing support to the company.
We expect no ownership dilution over the next two years."
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AADI BEST CONSORTIUM: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: AADI Best Consortium Private Limited
Registered office:
Unit No. GF-6, Rishabh Corporate Tower
Plot No. 16, Karkardooma Community Centre
Delhi 110092
Principal office:
RC 1/2 , Sector-1
Vaishali Ghaziabad 201010
UP
Insolvency Commencement Date: April 1, 2022
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: September 27, 2022
Insolvency professional: Mohit Goyal
Interim Resolution
Professional: Mohit Goyal
17 LGF, Defence Ennclave
Near Preet Vihar
Delhi 110092
E-mail: camohitgoyal@gmail.com
irpaadibest@gmail.com
Classes of creditors: Home Buyers
Insolvency
Professionals
Representative of
Creditors in a class: Mr. Ashok Kumar Gupta
LD-46, LD Block
Pitampura
New Delhi 110034
Mr. Bhim Sain Goyal
405, Skylark Building
60, Nehru Place
New Delhi 110019
Mr. Dham Vir Gupta
D-701, Antriksh Apartment
Plot No. 26, Sector-4
Dwarka, Delhi 110078
Last date for
submission of claims: April 15, 2022
AIRONA TILES: ICRA Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has retained the long-term and short-term ratings of Airona
Tiles Limited in the 'Issuer Not Cooperating' category. The ratings
are denoted as [ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 9.47 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Term Loan 1.50 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Bank Guarantee 2.27 [ICRA]A4; ISSUER NOT
COOPERATING; Rating continues
To remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
ATL was incorporated in 2014 to acquire the operations of the
ceramic division of City Tiles Limited after its demerger. It
commenced its commercial operations on April 01, 2015, and
manufactures ceramic floor tiles in different sizes viz. 400 mm X
400 mm, 600 mm X 600 mm and 600 mm X 900 mm. Its manufacturing
facility is located at Sabarkantha (Gujarat) and has ~18,60,000
square metre floor tiles per annum capacity. It sells the tiles
under the brand name 'Signova'.
In FY2017, the firm reported a net profit of INR1.92 crore on an OI
of INR40.01 crore, as compared to a net profit of INR1.39 crore on
an OI of INR44.16 crore in the previous year.
APEX FROZEN: ICRA Withdraws B+ Rating on INR45cr Cash Loan
----------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Apex Frozen Foods Limited (AFFL) at the request of the company and
based on the No Objection certificate (NOC) received from its
banker. However, ICRA does not have information to suggest that the
credit risk has changed since the time the rating was last
reviewed. The Key Rating Drivers, Liquidity Position, Rating
Sensitivities, Key financial indicators have not been captured as
the rated instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 5.59 [ICRA]B+ (Stable) ISSUER NOT
Term Loan COOPERATING; Withdrawn
Fund based- 45.00 [ICRA]B+ (Stable) ISSUER NOT
Cash Credit COOPERATING; Withdrawn
Fund based- 45.00 [ICRA]B+ (Stable) ISSUER NOT
Short Term COOPERATING; Withdrawn
Non Fund Based 8.00 [ICRA]A4 ISSUER NOT
Short-Term COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Unallocated- 3.37 [ICRA]B+ (Stable)/[ICRA]A4;
Long Term/ ISSUER NOT COOPERATING;
Short Term Withdrawn
Apex Frozen Foods Limited (AFFL) is promoted by Mr. K.S. Choudhary
and Mr. K. Satyanarayana Murthy and is into processing and
exporting seafood from 1997. It was founded as a partnership firm
under the name of Apex Exports in 1997, which was later converted
into a private limited company in March 2012 and public limited
company in 2016. The promoters have more than 18 years' experience
in processing and exporting of shrimps. AFFL has a processing plant
at Panasapadu, Kakinada, Andhra Pradesh, with an installed raw
material processing facility of 45 tons per day (TPD). The company
also operates through leased facility of 15 TPD.
APEX PREMISES: ICRA Moves B+ Debt Ratings to Not Cooperating
------------------------------------------------------------
ICRA has moved the ratings for the bank facilities of Apex Premises
Private Limited in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]B+ (Stable)/[ICRA]A4 ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 4.00 [ICRA]B+ (Stable) ISSUER NOT
Fund-based- COOPERATING; moved to the
Term loan 'ISSUER NOT COOPERATING'
(proposed) Category
Long Term- 4.00 [ICRA]B+ (Stable) ISSUER NOT
Fund-based- COOPERATING; moved to the
Cash Credit 'ISSUER NOT COOPERATING'
(proposed) Category
Long-term/ 15.00 [ICRA]B+ (Stable)/[ICRA]A4
Short-term– ISSUER NOT COOPERATING;
Non-fund based Rating moved to the 'ISSUER
(proposed) NOT COOPERATING' category
Long-term/ 2.00 [ICRA]B+ (Stable)/[ICRA]A4
Short-term– ISSUER NOT COOPERATING;
Unallocated Rating moved to the 'ISSUER
Limits NOT COOPERATING' category
ICRA assesses whether the information available about the entity is
commensurate with its rating and reviews the same as per its
"Policy in respect of non-cooperation by a rated entity" available
at www.icra.in. The lenders, investors and other market
participants are thus advised to exercise appropriate caution while
using this rating as the rating may not adequately reflect the
credit risk profile of the entity.
As part of its process and in accordance with its rating agreement
with Apex Premises Private Limited, ICRA has been trying to seek
information from the entity to monitor its performance, but despite
repeated requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, a rating view has been
taken on the entity based on the best available information.
Established in 1995, Apex Premises Private Limited (APPL) is a part
of the Suhas Mantri Group, a prominent real estate developer based
in Pune, Maharashtra. The company does not have any major
operations at present but plans to acquire a cotton ginning plant
at Warora (Wani) in Chandrapur district, Maharashtra and commence
cotton ginning and oil extraction operations from Q1 FY2022. It
shall also be involved in trading of food grains including tur,
soya, chana and mungfali.
The company reported a profit after tax (PAT) of INR0.02 crore on
an operating income (OI) of INR0.35 crore in FY2020 (mainly the
rental income from properties) compared to a PAT of INR0.66 crore
on an OI of INR0.40 crore in FY2019.
ARYAVRAT TRADING: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: M/s Aryavrat Trading Private Limited
Crescent Tower, 5th Floor
229, A.J.C. Bose Road
Kolkata 700020
Insolvency Commencement Date: April 1, 2022
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: September 28, 2022
Insolvency professional: Mr. Pranab Kumar Chakrabarty
Interim Resolution
Professional: Mr. Pranab Kumar Chakrabarty
72/9, Saikh Para Lane
Howrah, West Bengal 711103
E-mail: pranabchakrabartypkc@yahoo.com
- and -
LSI Resolution (P) Ltd.
104, S.P. Mukherjee Road
Sagar Trade Cube, 2nd floor
Kolkata, West Bengal 700026
E-mail: atpl.cirp@gmail.com
Last date for
submission of claims: April 15, 2022
BBG INFRASTRUCTURE: ICRA Assigns B Rating to INR0.25cr Cash Loan
----------------------------------------------------------------
ICRA has assigned rating to the bank facilities of BBG
Infrastructure Private Limited (BIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term–
Fund-based
Cash Credit 0.25 [ICRA]B (Stable); assigned
Long-term/
Short-term–
Unallocated 3.35 [ICRA]B (Stable)/[ICRA]A4;
Assigned
Rationale
The ratings assigned to BIPL takes note of the promoters track
record in the stone works and granite industry and healthy client
profile comprising government departments. BIPL had an order book
(OB) of INR13.13 crore as on December 31, 2021, with OB/OI of ~2
times of trailing FY2021 revenues. The company has recently emerged
L1 a relatively large order which will improve its order book in
the near term.
The ratings are, however, constrained by BIPL's small scale of
operations with modest net-worth and limited track record of
execution. The rating are constrained by the project & client
concentration risk with MMRCL being the only client with two
ongoing orders of the company. The ratings are also constrained by
the availability of limited working capital facilities, which could
constraint its liquidity position as the company is expecting to
increase its revenues sharply in the medium term. The ratings are
also constrained by the risks associated with the construction
business including risk of delays in execution impacting
profitability and liquidity.
The Stable outlook on the ratings reflects ICRA's opinion that BIPL
will benefit from the extensive experience of its promoters
in the construction segment.
Key rating drivers and their description
Credit strengths
* Healthy client profile: BIPL is currently executing orders from
MMRCL (a 50:50 jointly owned company of Government of India and
Government of Maharashtra). BIPL had an order book (OB) of INR13.13
crore as on December 31, 2021, with OB/OI of ~2 times of trailing
FY2021 revenues. The company has recently emerged L1 a relatively
large order which will improve its order book in the near term.
* Promoters experience in stone/granite segment: Promoters of the
company has been engaged in granite business for more a decade. BBG
had undertaken stone works including flooring, granite works and
other finishing works at metro stations.
Credit challenges
* Small scale of operations: BIPL's scale of operations is small,
as reflected by its OI of INR6.57 crore in FY2021 and net worth of
INR0.52 crore as on March 31, 2021. Further, the intense
competition in procuring tender-based contracts limits its pricing
flexibility and exerts pressure on the profit margins. The firm
posted an operating profit margin of 4.88% in FY2021 against
operating loss of 8.21% in FY2020 and net profit margins of 3.13%
in FY2021. In the 9mFY2022, BBG had billed revenues of Rs. 37
crore, and is expecting to generate revenue of INR45-50 cr in
FY2022.
* High project and client concentration risks: BIPL has executed
contracts mainly for the state government departments. As of
Dec-2021, BIPL had only two orders in its order book both from
MMRCL in Maharashtra. Given the client concentration, the risk of
non-performance in any project or weakening of the business
relationship with these clients can have a negative bearing
on securing future orders.
* Execution risks and non-fund based exposure: BIPL is exposed to
the execution risks associated with construction contracts. The
construction contracts are exposed to the risk of delays, which
could adversely impact profitability. The firm is also exposed to
the risk associated with the contingent liabilities in the form of
bank guarantees as any crystallization of these could impact its
liquidity.
Liquidity position: Stretched
The firm's liquidity position is stretched as reflected in the low
fund-based bank limits and limited cash buffer of 0.78 crore as on
March'2021. With the estimated increase in revenues, its working
capital requirement is expected to increase, which could
put pressure on its liquidity.
Rating sensitivities
Positive factors – The ratings could be upgraded if the company
demonstrates an improvement in revenues and profitability, leading
to improvement in its net-worth and liquidity position.
Negative factors – Delay in execution of order book or inability
to receive new orders affecting scale and profitability of the
company could lead to negative rating action.
BBG Infrastructure Private Limited was incorporated on November
19th, 2019. The company is into Building & construction, structural
finishing, Granite Mining, Factories, Flooring & Finishing, road &
utility works. BBG has performed structural finishing, plumbing and
land development work for parking plaza, Mall and metro stations.
Company has also performed road development and utility works in
Noida. Currently, the company has outstanding work order for
construction of 2 metro station from Maharashtra Metro Rail
Corporation Limited (Maha-metro). BBG Infrastructure is promoted by
Mr. Priyadarshi Balu Agarwal and Mr. Nikhil Bhardwaj. Mr.
Priyadarshi Balu Agarwal is a proprietor of Balu Balaji Granite
business. Balu Balaji Granite is into granite mining and owns
granite mines from where he sold its granites domestically and
internationally also. The promoter has an experience of more than a
decade in granite business.
BEARDSELL LIMITED: ICRA Reaffirms MB+ Fixed Deposit Rating
----------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of Beardsell
Limited (BSL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Medium Term-
Fixed Deposit 5.00 MB+ (Stable) reaffirmed
Rationale
The rating reaffirmation factors in the extensive experience of the
promoters and the management of BSL of over two decades in the
expanded polystyrene packaging and engineering industry. The
long-term association of the company with some of the customers
results in repeat orders. Further, its customer base is
diversified, witnessed by the low contribution of the top five
customers in the range of 7-12% in the last four fiscals.
The rating is, however, constrained by the company's relatively
weak financial profile characterised by a modest scale of
operations with a significant 17% year-on year revenue decline in
FY2021 and modest profitability. However, the company is likely to
demonstrate healthy growth in FY2022 over FY2021. Also, the
coverage ratios have remained weak with an interest coverage ratio
of 2.21 times and DSCR of 0.59 times as on March 31, 2021. Given
the debt repayments in FY2022 and FY2023, the liquidity profile has
also remained stretched due to the elongated receivables and modest
cash accruals. Also, the increase in the working capital
requirements has been funded by stretching the creditors, resulting
in a moderation of the total outside liabilities to tangible net
worth (TOL/TNW) to 2.10 times as on March 31, 2021 and 2.02 times
as on September 30, 2021. Moreover, there has been an equity
infusion of around INR9.4 crore in the current fiscal, enabling the
repayment of high interest-bearing unsecured loans and some
inter-corporate deposits.
The rating also factors in the susceptibility of BSL's
profitability to the fluctuations in raw material prices in both
the prefabricated and the EPS divisions. Further, as the sales are
linked to the demand and cyclicality of the end-user industries (in
this case, consumer durables), any slowdown in demand may adversely
impact revenue growth and profitability.
The Stable outlook on the medium-term rating is backed by
expectations that the company will continue to benefit from the
extensive experience of its promoters and the management in the
expanded polystyrene and engineering industry.
Key rating drivers and their description
Credit strengths
* Extensive experience of promoters and management – BSL started
its operations in 1936, which are presently headed by the Executive
Director, Mr. Amrith Anumolu, who has been involved in the
engineering industry for over two decades. The company's
established track record of operations and the extensive experience
of its management have enabled it to establish itself in the
expanded polystyrene and engineering industry.
* Diversified client base with repeat orders from a few clients –
BSL entirely caters to the domestic market, primarily pharma
companies, water purifier manufacturers and government departments.
The customer base has remained diversified in the last three years
with the top five customers driving ~8% of its total sales in
FY2021. Its long-term association with some of the customers has
also led to repeat business for the company.
Credit challenges
* Financial profile characterized by revenue decline, modest
profitability and weak coverage indicators: On a consolidated
level, the group's operating income declined to INR133.2 crore in
FY2021 from INR161.7 crore in FY2020 due to the adverse impact of
the pandemic on the end-user segments in FY2021. Despite the
decline in OI, the OPM marginally increased to 8.8% in FY2021 from
8.2% in FY2020; the NPM was -0.30% in FY2021 and 0.51% in FY2020
compared with -0.39% in FY2019. Also, coverage ratios have remained
weak with an interest coverage ratio of 2.21 times and DSCR of 0.59
times as on March 31, 2021. However, ICRA expects the revenue to
increase in the coming fiscals, indicated by the 52.9% revenue
growth in 9M FY2022 to INR131 crore compared with INR85.63 crore in
9M FY2021.
* Stretched liquidity position leading to high utilization of
limits: The high receivables and modest cash accruals stretched the
liquidity, witnessed in the high utilization of sanctioned
fund-based working capital limits at 69% in FY2021 which increased
to some extent in the current fiscal. Further, high creditor levels
have led to high TOL/TNW of 2.10 times (P.Y. 2.11 times) as of
March 31, 2021, and 2.02 times as of September 30, 2021 on account
of increased creditor funding in the business to meet its working
capital requirements. Debt repayments in the near to medium term
are further expected to exacerbate the liquidity position. Also, in
January 2022, the company completed its right issue of almost INR9
crore which was used to repay the high interest cost promoter loans
of INR3.25 crore and ICDs of INR2.25 crore. The balance of ~Rs. 3
crore of equity will be used for working capital funding.
* Exposed to raw material fluctuation risk: The major raw materials
required are expanded polystyrene (EPS) resins, isocyanate,
pre-painted galvalume coils, galvanized iron wire and other
electrical accessories. EPS resins, iso-cyanate and steel form
majority of its raw material requirement. BSL's profitability
remains exposed to the volatility in raw material prices as the key
input for EPS products, polystyrene, is linked to crude oil, which
has remained hugely volatile in the last few years. Prices of other
raw materials like iso-cyanate have also risen sharply in the
current fiscal. The company has limited ability to pass on the
input price hike and hence the margins are vulnerable to the
volatility in raw material cost.
* Slowdown in demand of end-user industry could adversely impact
revenue growth and profitability: BSL has two major business
segments - packaging/molded products and prefabricated panel
products - with the former driving 40- 45% of the total revenues in
FY2021 and H1 FY2022. BSL supplies molded thermocol and EPS sheets
used as packaging material for consumer durable products. Hence,
its operations remain exposed to the cyclical demand from the
end-user industries. Further, for the prefabricated segment, the
demand is driven by the capital expenditure plans of customers and
can be volatile.
Liquidity position: Stretched
On a consolidated basis, BSL has a term loan/fixed
deposit/unsecured loans and advances from related parties of ~Rs
21.3 crore as on March 31, 2021, which includes loans received as
part of the Covid-19 relief package under the RBI guidelines. BSL
is expected repay ~Rs 6.5 crore in FY2022, INR4.0 crore in FY2023
and ~Rs 3.1 crore in FY2024. The liquidity position is expected to
remain stretched due to modest cash accruals and cash balance of
INR2.46 crore as on March 31, 2021 vis-à-vis the repayment
obligations. There was an equity infusion of INR9.4 crore which is
likely to support the liquidity to some extent. The company also
has a sizeable modernisation capex plan in the near term which is
expected to be partially debt funded.
Rating sensitivities
Positive factors – The rating can be upgraded if there is a
substantial improvement in revenue and profitability with better
working capital management, as well as improvement in the company's
liquidity position.
Negative factors – The rating can be downgraded if there is
lower-than-expected cash accruals or any increase in borrowing
levels or any stretch in the working capital cycle that will weaken
the liquidity.
Beardsell Limited was incorporated in 1936 with its head office in
Chennai. It manufactures insulation products such as prefabricated
products and packaging and molded products. The prefabricated
segment comprises panel products, which find applications in
sectors such as cold storages, affordable housing, food processing
plants, pharma and roofing applications. The company's packaging
and molded products segment manufactures panels (expanded
polystyrene sheets and rigid polyurethane foam slabs) primarily
used for composite packaging, anti-static packaging, building
insulation, etc, that find application in the consumer durables
industry. Besides, BSL trades in industrial motors in the domestic
market. It is a channel partner for Siemen's electric motors in
Tamil Nadu. The company has six manufacturing units, one each in
Chennai, Thane, Karad, Hyderabad, Malur (Karnataka) and Hapor. Its
registered office is in Chennai with eight branches pan India.
BICERO TILES: ICRA Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has retained the long-term and short-term ratings of Bicero
Tiles LLP in the 'Issuer Not Cooperating' category. The ratings are
denoted as [ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 15.00 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Cash Credit 7.00 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Bank Guarantee 1.00 [ICRA]A4; ISSUER NOT
COOPERATING; Rating continues
To remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Established in 2016, BTL manufactures nano vitrified floor tiles in
600mm X 600 mm size. The facility of the firm is located at Morbi
and has an installed capacity to manufacture 63,000 metric tonnes
(~6,000 boxes per day) of nano vitrified floor tiles. The unit
became fully operational on June 2017. The firm promotes its
products under the brand name of 'Bicero'.
BYRNIHAT COAL: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Byrnihat Coal Private Limited
House No. 3/1, Rajdeep Complex
First Floor, F.A. Road
Kumarpara, Guwahati 781009
Assam, India
Insolvency Commencement Date: April 1, 2022
Court: National Company Law Tribunal, Guwahati Bench
Estimated date of closure of
insolvency resolution process: September 28, 2022
(180 days from commencement)
Insolvency professional: Mr. Akhil Ahuja
Interim Resolution
Professional: Mr. Akhil Ahuja
D-65, Ground Floor
Defence Colony, South
National Capital Territory of Delhi
110024
E-mail: caakhilahuja@gmail.com
- and -
Immaculate Resolution Professionals
Private Limited
Unit No. 112, First Floor, Tower-A
Spazedge Commercial Complex
Sector-47, Sohna Road
Gurgaon 122018
E-mail: cirp.byrnihatcoal@gmail.com
Last date for
submission of claims: April 15, 2022
CONCEPT BIOSCIENCES: Insolvency Resolution Process Case Summary
---------------------------------------------------------------
Debtor: Concept Biosciences India Private Limited
24/25, Dobson Road
Howrah, West Bengal 711101
Insolvency Commencement Date: April 1, 2022
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: September 27, 2022
Insolvency professional: Ajay Kumar Agarwal
Interim Resolution
Professional: Ajay Kumar Agarwal
Plot no. IID/31/1, Street No. 1111
PS Qube, Unit Number 1015A
10th Floor, Beside City Centre 2
Kolkata 700161
WB
E-mail: cs.aaa.2014@gmail.com
cirp.cbipl@gmail.com
Last date for
submission of claims: April 15, 2022
CREST STEEL: Nithia Capital Acquires Steel Maker for INR600 crore
-----------------------------------------------------------------
Business Standard reports that US-based advisory and investment
firm Nithia Capital on April 5 announced the acquisition of Crest
Steel and Power Pvt Ltd (CREST) in Chhattisgarh for INR600 crore
through an insolvency proceeding.
This acquisition has been completed under an insolvency process in
partnership with Amalgam Steel Private Limited (ASPL), Nithia
Capital said in a statement, the report relates.
"Nithia Capital (Nithia) completes acquisition of CREST in
partnership with Amalgam Steel Private Limited with Nithia
retaining majority control of the partnership," the statement
said.
CREST is an integrated plant with a sponge iron capacity of 225
kilo tonne per annum (KTPA). The plant has over 400 acre land,
providing "extensive room" for brownfield expansion with a private
railway siding, Nithia said.
"The acquisition is an important and strategic step for Nithia and
our second steel investment in India. With our newly forged
partnership with Amalgam Steel, we believe CREST will soon achieve
a successful turnaround, and is well set on its planned growth
programme. This transaction is further proof of the success of the
Insolvency and Bankruptcy Code (IBC)," the report quotes Jai Saraf,
founder and CEO of Nithia Capital, as saying.
GDJD GROUP: ICRA Assigns B+ Rating to INR15cr LT/ST Loan
--------------------------------------------------------
ICRA has assigned rating to the bank facilities of GDJD Group, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term/ 15.00 [ICRA]B+(Stable)/[ICRA]A4;
Short-term– Assigned
Unallocated
Limits
Rationale
ICRA has taken a consolidated view of the GDJD Group, which
includes GDJD Exports and GDJD International Pvt. Ltd., while
assigning the credit ratings, given the common management and
significant operational and financial linkages between them.
The ratings are constrained by the Group's weak financial risk
profile, characterized by adverse coverage indicators and a
stretched liquidity position. The Group's margins are low because
of its trading operations and intense competition in the yarn
trading segment. While its scale and margins are expected to
improve in FY2022 owing to an improvement in the market conditions,
the same continue to remain modest. Besides, its capital structure
remains leveraged, characterized by the total debt/tangible net
worth of 2.9 times as on March 31, 2021, because of the Group's
modest net worth. The promoters have infused interest-bearing
unsecured loans in the current year to manage the increased working
capital requirements, which are expected to further increase the
leverage in the current year. The utilisation of working capital
limits also remained high in the current year. The ratings continue
to consider the susceptibility of the Group's profitability to
foreign exchange fluctuations on the unhedged exposure. The
ratings, nevertheless, continue to derive comfort from the Group's
long operational track record, promoters' extensive experience in
the yarn trading segment and its long relationship with its key
suppliers. The ratings positively factor in the Group's diversified
customer base, which mitigates the risk of customer concentration
and ensures revenue stability, as seen in the past.
The Stable outlook reflects ICRA's expectations that GDJD will
continue to benefit from the extensive experience of its partners,
its diversified customer base and its long association with key
suppliers.
Key rating drivers and their description
Credit strengths
* Long experience of promoters for over two decades in the yarn
exports segment: GDJD's key promoter, Mr. Bharat Kumar Shah, has
extensive experience of over two decades in the textile segment,
especially in yarn trading. Besides, GDJD Exports, established in
1990, has a long operational track record in the segment.
* Recognised export house, resulting in quicker processing of
exports: The Group is primarily involved in export operations and
is a recognized export house. It benefits from the granted status,
resulting in quicker processing of exports and other benefits.
* Diversified customer base and long association with suppliers:
The Group's customers are based out of countries including
Singapore and Taiwan. Although the customer churn rate has been
relatively higher, the Group has been able to compensate for the
loss by expanding its presence into new geographies and by
acquiring new customers. It has over two decades of association
with its key suppliers, which ensures timely availability of
products and favorable credit terms.
Credit challenges
* Moderate scale of operations: The scale of operations remains
moderate on an absolute basis with revenue of around INR175 crore
in FY2021 at the Group level.
* Weak financial profile as characterized by thin profit margins
and stretched coverage indicators: The profit margins remain thin
due to intense competition. Thin profit margins led to stretched
coverage indicators. Interest coverage, debt service coverage ratio
and total debt/OPBDITA stood at 0.71 times, 1.23 times and 13.8
times, respectively, in FY2021. While, the same will improve in the
current year owing to better scale and margins, the coverage
indicators will continue to remain stretched.
* Intense competition in a highly fragmented industry structure
limits pricing flexibility: Given the highly fragmented nature of
the yarn trading segment, the Group faces intense competition,
which coupled with low value-added nature of operations and low
product differentiation, restricts its profitability.
* Margins exposed to foreign exchange fluctuations: The Group
derives almost its entire revenues from exports and its receivables
are largely denominated in foreign currency. Although it partially
hedges its foreign exchange exposure, its profitability remains
susceptible to adverse foreign exchange fluctuations on the
unhedged exposure.
Liquidity position: Stretched
The Group's liquidity position remains stretched, characterized by
limited availability of buffer in its working capital facilities
and moderate free cash balance. Its working capital utilization
remained high in the recent past.
Rating sensitivities
Positive factors – ICRA could upgrade the ratings, if the company
is able to demonstrate a sustained improvement in revenue and
profitability, leading to improved credit metrics.
Negative factors – The ratings could be downgraded if the
company's profitability indicators worsen, leading to pressure on
its credit metrics and liquidity.
Initially, the GDJD Group established the partnership entity, GDJD
Exports, in 1990 to carry out trading activities. Given the
inherent challenges of the partnership firm, the company
established GDJD International Pvt. Ltd. in 2012. Going forward,
the new bank limits will be available in the private limited entity
and consequently business growth will happen in the same. The
partnership entity will co-exist as of now, but the growth could be
constrained and depend on the available limits.
GEMSTONE CERAMIC: ICRA Withdraws B+ Rating on INR6.80cr Term Loan
-----------------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Gemstone Ceramic LLP at the request of the company and based on the
No Objection Certificate/Closure Certificate received from the
banker. However, ICRA does not have information to suggest that the
credit risk has changed since the time the rating was last
reviewed. The Key Rating Drivers, Liquidity Position, Rating
Sensitivities, Key Financial indicators have not been captured as
the rated instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 6.80 [ICRA]B+(Stable); ISSUER NOT
COOPERATING; Withdrawn
Cash Credit 3.00 [ICRA]B+(Stable); ISSUER NOT
COOPERATING; Withdrawn
Bank Guarantee 1.00 [ICRA]A4; ISSUER NOT
COOPERATING; Withdrawn
Established in March 2018, GCL is setting up a greenfield project
at Morbi to manufacture glazed wall tiles. The unit has an
estimated installed capacity of producing ~28,800 MT of tiles
annually. The firm's commercial operation commenced from February
2019. The partners have adequate experience in the ceramic industry
vide their association with another entity.
GRESS CERAMICA: ICRA Keeps B- Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has retained the long-term and short-term ratings of Gress
Ceramica Private Limited in the 'Issuer Not Cooperating' category.
The ratings are denoted as [ICRA]B-(Stable)/[ICRA]A4; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 3.36 [ICRA]B- (Stable) ISSUER NOT
Term Loan COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Fund based- 3.00 [ICRA]B- (Stable) ISSUER NOT
Cash Credit COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Non Fund Based 1.00 [ICRA]A4 ISSUER NOT
Bank Guarantee COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Unallocated 1.89 [ICRA]B-(Stable)/[ICRA]A4;
Limits ISSUER NOT COOPERATING;
Rating continues to remain
under 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in December 2011, Gress Ceramica Private Limited
(GCPL) is a glazed wall tiles manufacturer with its plant in
Wankaner, Gujarat. GCPL commenced its operations in July 2012 and
currently manufactures wall tiles of four sizes 12"X18", 12"X12",
8"X24" and 10"X24", which find wide application in commercial as
well as residential buildings. The company is managed and promoted
by Mr. Bhadresh R. Bhadoliya, Mr. Nitin Panchotiya and Mr. Hasmukh
Panchotiya. It has an installed capacity to manufacture 18,72,000
boxes of wall tiles per annum.
GURU NANAK: ICRA Keeps B+ Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
ICRA has retained the long-term ratings of Shree Guru Nanak Dev
Rice Mills in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]B (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 6.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based/CC COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Shree Guru Nanak Dev Rice Mills (SGNDRM) is a partnership firm, was
set up in 2008 by Mr. Gurcharan Singh. The firm is engaged in the
trading and milling of basmati rice. It has a plant at Cheeka
(Haryana) which has a milling capacity of 4 tonnes per hour. The
firm has a fully automated plant. The by-products of basmati rice
viz husk, rice bran and 'phak' are sold in the domestic market.
KALYAN JEWELLERS: Moody's Assigns First Time B2 Corp Family Rating
------------------------------------------------------------------
Moody's Investors Service has assigned a B2 corporate family rating
to Kalyan Jewellers India Limited (KJIL). At the same time, Moody's
has assigned a backed senior secured bond rating of B2 to the
proposed USD bonds to be issued by KJIL's wholly-owned subsidiary,
Kalyan Jewellers FZE (KJFZE). The notes will be guaranteed by KJIL
on an unsecured basis.
This is the first time Moody's has assigned ratings to KJIL and
KJFZE.
The rating outlook on KJIL is stable.
KJFZE and KJIL will primarily use the bond proceeds for refinancing
existing debt and for general corporate purposes.
RATINGS RATIONALE
"The B2 CFR reflects KJIL's position as the second-largest company
in the fragmented Indian jewelry market, albeit with a market share
of only 2% of the overall market and about 6% of the organized
market," says Nidhi Dhruv, a Moody's Vice President and Senior
Analyst.
"KJIL has a large product range and multiple sub-brands catering to
customers across various price points, which moderates its exposure
to fashion risks, especially since wedding jewelry contributes
around 55%-60% of its revenues," added Dhruv who is also Moody's
lead analyst for KJIL.
The rating considers KJIL's extensive store network of 121
showrooms across India, its good brand recognition and potential
for gaining market share as the Indian jewelry industry shifts from
unorganized to organized retail. In addition, KJIL has 30 showrooms
in the Middle East as of December 2021.
KJIL's leverage has steadily declined to 5.4x in the fiscal year
ended March 31, 2021 from 8.9x in fiscal 2019, on reduced debt and
rising EBITDA.
The rating also reflects KJIL's modest EBITDA margins of around
7.5%-8.0% which reflects, in part, the company's strategy to
increase the proportion of studded jewelry in its product mix from
both South and non-South Indian markets. KJIL is also adopting the
franchise store model over the next few months, which could further
benefit profitability.
"Moody's forecasts a further improvement in leverage to 4.2x-4.7x
in fiscal 2023-24 based on debt reducing to INR38.8 billion for
fiscal year ending March 2023, down from INR41.5 billion for fiscal
2021," adds Dhruv.
However, the rating is constrained by KJIL's small scale, with
revenues of $1.4 billion for the last 12 months ended December 31,
2021, the working capital-intensive nature of its business and weak
liquidity with a high reliance on short-term bank facilities and
gold metal loans.
KJIL's customer advances under various schemes are material at
about INR10 billion ($134 million), which equates to around 25% of
the company's total debt as of March 2021. While these schemes are
key to its customer service and marketing strategy, if the company
is unsuccessful in maintaining the customer advances at current
levels, KJIL's debt levels would be higher, although that is not
Moody's base case.
The ratings also consider KJIL's exposure to the discretionary and
highly seasonal Indian jewelry sector, intense competition from
organized and unorganized companies, earnings vulnerability to
volatility in gold prices and inherent regulatory risks in the gems
and jewelry industry. Procurement of gold through gold metal loans
and strong hedging policies temper KJIL's exposure to the
volatility in gold prices.
The proposed senior secured bond is not exposed to legal or
structural subordination risk, hence the rating is in line with the
CFR at B2. The proposed backed senior secured bond benefits from
security over inventory and receivables at Kalyan's UAE entities,
and all assets at Qatar, Kuwait and Oman. The covenants for the
proposed bond also require the company to maintain an unencumbered
inventory coverage ratio at KJIL such that the combined inventory
coverage is 1.1x the amount of bonds outstanding.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS
In terms of environmental, social and governance considerations,
Moody's has incorporated moderate governance risks arising from
KJIL's concentrated ownership of 60.53% by the promoter group.
However, the management largely comprises professionals who have no
affiliate relationships with the board of directors nor key
shareholders.
Five of the 10 directors on the board are independent, and one of
the directors is a nominee of Highdell Investment Ltd, an affiliate
of private equity firm Warburg Pincus & Company US LLC, which has a
direct stake of 26.36%.
LIQUIDITY
KJIL has weak liquidity as the company relies heavily on short-term
gold metal loans and other bank facilities to fund its working
capital requirements. However, the company has a track record of
renewing its bank facilities through the Indian and Middle Eastern
banks, demonstrating its banking relationships.
OUTLOOK
The stable rating outlook on KJIL reflects Moody's expectations
that the company's performance will remain strong over the next
12-18 months and that its adjusted gross leverage will remain at
4.0x-5.0x over the period.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Positive pressure could emerge if KJIL (1) sustainably enhances its
profitability, (2) steadily improves its market share, and (3)
improves its liquidity position through an increased proportion of
longer-term funding.
In conjunction with the qualitative factors, financial metrics that
Moody's would consider for an upgrade include Moody's-adjusted
debt/EBITDA below 3.5x, positive adjusted free cash flow
underpinned by higher-than-expected revenue growth and margin
expansion, and retained cash flow (RCF)/net debt greater than 15%
on a sustained basis.
Conversely, downward pressure could emerge if KJIL is not able to
(1) enhance its profitability or market share, (2) improve its
liquidity profile through longer term and diversified funding
sources, or (3) the company adopts a more shareholder-friendly
financial policy.
Financial metrics that Moody's would consider for a downgrade
include Moody's-adjusted debt/EBITDA exceeding 5.0x, negative FCF
generation or RCF/net debt below 10% on a sustained basis.
The principal methodology used in these ratings was Retail
published in November 2021.
Kalyan Jewellers India Limited (KJIL) is the second-largest jewelry
company in India. Founded in 1993, KJIL has a pan-India presence
with 121 showrooms located across 21 states and Union Territories
in India, and international presence with 30 showrooms in the
Middle East. KJIL listed on the Bombay Stock Exchange and National
Stock Exchange in March 2021, and has a current market
capitalization of INR63.8 billion ($851 million) as of April 1,
2022.
KKRC INFRASTRUCTURE: ICRA Withdraws B+ Rating on INR50cr Loans
--------------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
KKRC Infrastructure Private Limited at the request of the company
and based on the no objection certificate received from its banker,
and in accordance with ICRA's policy on withdrawal of credit
rating. However, ICRA does not have information to suggest that the
credit risk has changed since the time the rating was last
reviewed. The Key Rating Drivers, Liquidity Position, Key Financial
Indicators and Rating Sensitivities have not been captured as the
related instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Working Capital
Facilities 16.00 [ICRA]B+(Stable); Withdrawn
Non-Fund Based
Facilities 32.00 [ICRA]B+(Stable); Withdrawn
Unallocated Limits 2.00 [ICRA]B+(Stable); Withdrawn
KKRC was set up as a proprietorship firm, KK Reddy and Company, by
Mr. K Chandra Mohan Reddy in 1983. It was reconstituted as a
partnership firm in 1996 and then as a private limited company in
2010, when it got its present name located in Hyderabad.
It undertakes civil construction works for various irrigation
projects, including digging and lining of canals, excavation works,
embankment in canal projects, and dam construction. The company is
registered as a special class contractor with the public works
departments of Andhra Pradesh and Telangana.
KOBE SUSPENSION: ICRA Keeps B+ Debt Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Kobe
Suspension Company Private Limited in the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]B+ (Stable)/[ICRA]A4
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term: 0.80 [ICRA]B+ (Stable); ISSUER NOT
Fund Based/ COOPERATING; Rating Continues to
Cash Credit Remain under 'Issuer not
cooperating category'
Short-Term: 2.20 [ICRA]A4; ISSUER NOT
Fund Based COOPERATING; Rating Continues to
Remain under 'Issuer not
Cooperating category'
Long Term/ 1.00 [ICRA]B+ (Stable)/[ICRA]A4;
Short Term: ISSUER NOT COOPERATING;
Unallocated Rating Continues to Remain under
'Issuer not cooperating category'
ICRA has been trying to seek information from the entity so as to
monitor its performance, Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Kobe Suspension Company Private Limited (KSCPL) manufactures and
trades in trailer components such as leaf springs, suspension kits
and trailer assemblies and spare parts. It sells the products in
the domestic markets and also exports to South Africa. KSCPL's
manufacturing facility is located at Faridabad in Haryana.
KRANTHI EDIFICE: ICRA Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has retained the long-term ratings of Kranthi Edifice Private
Limited in the 'Issuer Not Cooperating' category. The ratings are
denoted as [ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 12.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based/CC Rating Continues to remain under
'Issuer Not Cooperating'
Category
Long-term 110.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Continues to remain under the
'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance, Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Kranthi Edifice Private Limited (KEPL), formerly Kranthi
Constructions a partnership firm formed in 1983 and converted to
private limited company in May 2012. KEPL is promoted by Mr. M
Pratap Reddy and is in to the construction business for the past 30
years. KEPL is predominantly into irrigation projects and has
executed contracts for various dams, lift irrigation projects,
canals, aqueducts etc. Kranthi is Special Class & Class I
contractor for Andhra Pradesh, Telangana and Karnataka Government
state irrigation projects.
MEH INDIA: ICRA Keeps B+ Debt Rating in Not Cooperating Category
----------------------------------------------------------------
ICRA has retained the Long-term ratings of Meh India Overseas
Private Limited in the 'Issuer Not Cooperating' category. The
ratings are denoted as [ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Packing credit 10.50 [ICRA]B+(Stable); ISSUER NOT
COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
MIOPL, incorporated in 2009, processes natural stone products. The
company is managed by Mr. Alok Mehta. The company's manufacturing
facility is located at Behror, Rajasthan. It exports mainly to
European countries. MIOPL reported a net profit of INR0.29 crore on
operating income (OI) of INR20.14 crore in FY2017 compared with a
net profit of INR0.35 crore on OI of INR22.59 crore in the previous
year.
PAYNE REALTORS: ICRA Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has retained the Long-term ratings of Payne Realtors Private
Limited in the 'Issuer Not Cooperating' category. The ratings are
denoted as [ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 27.50 [ICRA]D; ISSUER NOT COOPERATING;
Rating Continues to remain under
'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance, Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Payne Realtors Private Limited (PRPL), incorporated in February
2008, is a 100% subsidiary of Prius Commercial Projects Private
Limited (previously known as GYS Real Estates Private Limited).
PCPPL was incorporated on December 8, 2006. 84% stake in the
company is held by Ms. Shabnam Dhillon and 16% stake is held by Mr.
Yuvraj Narain Gorwaney. Prius group is based out of New Delhi and
it owns and manages multiple real estate assets in India. PRPL's
commercial building is operational since 2009 and has total
leasable area of 74,500 sq ft. PCPPL has five subsidiaries, each of
which owns and manages commercial properties in various locations.
Total saleable area across the six companies (PCPPL and its five
subsidiaries) is 1.15 million sq ft.
RELIABLE SPACES: ICRA Keeps B+ Debt Ratings to Not Cooperating
--------------------------------------------------------------
ICRA has retained the Long-term ratings of Reliable Spaces Private
Limited in the 'Issuer Not Cooperating' category. The ratings are
denoted as [ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 185.00 [ICRA]B+(Stable) ISSUER NOT
Term Loan COOPERATING; Rating Continues
to remain under Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Reliable Spaces Private Limited (RSPL), promoted by the Sequeira
family, currently has 2 buildings at Airoli (Navi Mumbai) which
have been entirely leased out to corporates on a leave and license
basis. The two buildings are Reliable Plaza and Reliable Liberty
Tower. Apart from that, the company also has a call centre business
wherein ~1000 employees are employed who manages ~5.4 million calls
per month. In FY2014, the business of Reliable Spaces Private
Limited was merged into Reliable Informatics Park Private Limited
(an entity with minimal business operations); and in FY2015, the
name of Reliable Informatics Park Private Limited was changed to
Reliable Spaces Private Limited.
SAEL LIMITED: Moody's Gives (P)Ba3 Rating on New USD Secured Notes
------------------------------------------------------------------
Moody's Investors Service has assigned a (P)Ba3 rating to the
proposed USD senior secured notes to be issued by SAEL Limited and
its five subsidiaries (collectively co-issuers).
The rating outlook is stable.
The co-issuers are SAEL Limited, Laxjeet Renewable Energy Private
Limited, Canal Solar Energy Private Limited, Universal Biomass
Energy Private Limited, Sunfree Paschim Renewable Energy Private
Limited and Sunfree North East Renewable Energy Private Limited,
which together will form a restricted group (RG), following a
planned organizational restructuring of SAEL group.
The proposed organizational restructuring involves a transfer of
non-RG projects and businesses, including the agriculture
processing business, to unrestricted subsidiaries of SAEL, while
creating a new parent company above SAEL. The RG will have a static
pool of projects post restructuring.
The proceeds of the USD notes will be used to refinance debt and
fund capital spending for the RG and other corporate purposes.
All co-issuers cross guarantee the senior notes, and the
noteholders will benefit from a security package, including (1) a
first-ranking charge over the co-issuers' immovable and movable
assets, and project documents; and (2) a pledge of 100% of the
shares of each co-issuer.
The provisional status of the rating will be removed upon
completion of the transaction, hedging arrangements and
organizational restructuring under satisfactory terms.
RATINGS RATIONALE
"The (P)Ba3 rating of the proposed notes reflects the credit
quality of the RG, which, in turn, is supported by its predictable
cash flow from a diversified renewable portfolio with long-term
power purchase agreements (PPAs)," says Yong Kang, a Moody's
Analyst.
At the same time, the RG's credit quality is constrained by its (1)
exposure to financially weak offtakers; (2) fuel supply risks for
waste-to-energy projects; (3) moderately high financial leverage;
and (4) relatively short operating track record of less than 3
years as of January 2022.
The average remaining life of the RG's PPA is around 20 years as of
January 2022, while only 50 megawatts (MW) out of the total
capacity of 281MW has less than 10 years of remaining life under
the PPA.
About 85% of the RG's capacity is contracted with state-related
entities, which are financially weak and have a track record of
payment delays in general, while only 7% of the capacity is
contracted with a sovereign-backed entity. Although the RG has not
faced significant challenges for receivable collection, Moody's
expects this risk to continue to constrain the RG's credit
quality.
Although waste-to-energy projects provides additional
diversification, the RG will be exposed to fuel supply risk
stemming from potential volatility in the price and volume of paddy
straw. While the waste-to-energy projects have fuel supply
contracts and supply of paddy straw is expected to be more than
sufficient for the next one to two years, the risk remains because
of the terms of the contracts and inherent uncertainty over the
supply situation beyond the immediate two years.
Moody's expects the RG's funds from operations (FFO) to debt to be
in the mid-to high-single digits over the next 2-3 years, and
improve toward the maturity of the notes. That said, given the
recent volatility in capital markets, there is an element of
uncertainty over the notes' final coupon which, in turn, could
affect the RG's projected financial profile and exert downward
pressure on the notes rating.
Although the notes will partially amortize through scheduled
repayments and mandatory cash sweeps, the credit quality
incorporates some refinancing risk.
To mitigate the currency risk, stemming from INR cash flow
generation but USD debt-servicing obligations, the RG will enter
into currency option contracts for coupon and principal
repayments.
The RG's liquidity benefit from its predictable cash flow
generation, compared with limited capital expenditure once projects
are commissioned, and the existence of a debt service reserve
account (DSRA). However, the DSRA will not be fully funded under
Moody's base case because mandatory cash sweep will be prioritized
against the DSRA in the cash flow waterfall.
Moody's considers the risk of potential contagion that would stem
from the fact that SAEL, as a part of the RG will continue to hold
shares of entities for other projects and the warehousing business
will remain at SAEL. Despite mitigants such as a restriction on
distribution, affiliate transactions and additional indebtedness as
well as a cash flow waterfall based on financing documents, the
RG's credit quality can be affected by the entities within the
wider SAEL group or by potential operational liabilities from the
warehousing business.
In terms of environmental, social, and governance factors, the RG
benefits from positive macroeconomic and sectoral trends in
renewable energy, and thus, has low exposure to carbon transition
risk. SAEL group's renewable energy business is aligned with
India's target to reduce its carbon footprint and meet its
nationally determined contributions.
The rating on the notes also factors in moderate governance risk,
given the concentrated shareholding of SAEL group. However, its
experienced management team, which has demonstrated its strong
commitment and ability to manage solar and waste-to-energy
projects, mitigates this risk.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
The stable outlook reflects Moody's expectation that the RG's
financial metrics will improve to the level that is appropriate for
the (P)Ba3 rating over the notes tenure.
The rating could be upgraded if (1) the RG's FFO/debt exceeds 14%
on a sustained basis, and (2) the offtakers' credit quality, based
on Moody's assessment, improves.
The rating could be downgraded if (1) the RG's FFO/debt declines
below 7% on a sustained basis, (2) the offtakers' credit quality,
based on Moody's assessment, worsens, or (3) the SAEL group
entities face operational or financial challenges, which can have a
negative credit implication on the RG.
The principal methodology used in this rating was Power Generation
Projects Methodology published in January 2022.
RG comprises SAEL Limited and five subsidiaries of SAEL Limited,
which operate renewable energy projects in India, with a total
capacity of 281MW, comprising 173.5MW solar projects and 60.5MW
waste-to-energy projects as of January 2022.
SAEL group, incorporated in 1999, is a company engaging in multiple
businesses, including (1) solar and biomass energy generation, (2)
rice processing, (3) warehousing and (4) manufacturing of rice bran
oil.
SAISONS TRADE: ICRA Keeps D Rating in Not Cooperating Category
--------------------------------------------------------------
ICRA has retained the ratings for the Non-Convertible Debentures
(NCD) of Saisons Trade & Industry Private Limited (STIPL) in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non Convertible
Debenture (NCD) 5.00 [ICRA]D; ISSUER NOT COOPERATING;
Rating continues to remain under
'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in 1999, STIPL manufactures electrical panels, fire
panels and accessories, wire harness, telecom products and various
fabricated products. It ventured into merchant exports of agro
commodities and chemicals in FY2018. The company's manufacturing
facility is in Bhiwandi (Thane district in Maharashtra) and its
registered office is in Mumbai.
SANT FOODS: ICRA Keeps B Debt Rating in Not Cooperating Category
----------------------------------------------------------------
ICRA has retained the long-term of Sant Foods Private Limited in
the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 15.00 [ICRA]B (Stable) ISSUER NOT
Cash Credit COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Sant Foods Private Limited (SFPL) was established in 2008. The
company mills rice at an installed capacity of 6 tons per hour. The
company has two sortex machines with the capacity of 5 tons/hour
and 2 tons/hour. The company is managed by Mr. Pradeep Wadhwa.
SATVA INFRATECH: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Satva Infratech Private Limited
8-3-945, Flat No. 102
Srinilaya Enclave, Ameerpet
Hyderabad, Telangana 500073
India
Insolvency Commencement Date: March 7, 2022
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: May 16, 2022
Insolvency professional: Mr. Prakul Thadi
Interim Resolution
Professional: Mr. Prakul Thadi
Flat No. 1405, J Block
Rainbow Vistas
Green Hills Road, Moosapet
Hyderabad, Telangana 500018
India
E-mail: prakulthadi@hotmail.com
cirp.satva@gmail.com
Last date for
submission of claims: April 15, 2022
SATYA BHASKARA: ICRA Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has retained the long-term ratings of Sri Satya Bhaskara
Poultry Farm in the 'Issuer Not Cooperating' category. The rating
is denoted as "[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 7.00 [ICRA]B+ (Stable) ISSUER NOT
Cash Credit COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Unallocated 3.00 [ICRA]B+(Stable); ISSUER NOT
COOPERATING*; Rating Continues
to remain under issuer not
cooperating category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
SSBP operates poultry farms with a total capacity of 2,30,000 layer
birds in Balabrapuram village, Biccvole Madal, East Godavari
district, Andhra Pradesh. The firm sells table eggs of Vencobb
breed (Venkateswara Hatcheries), which has wide market acceptance.
It supplies eggs under various government schemes in Andhra Pradesh
and also sells to traders/wholesalers.
SKS POWER: ICRA Moves D Debt Ratings to Not Cooperating Category
----------------------------------------------------------------
ICRA has moved the long-term rating of [ICRA]D for the bank
facilities of SKS Power Generation (Chhattisgarh) Limited (SKS) to
the 'Issuer Not Cooperating' category. The rating is now denoted as
'[ICRA]D ISSUER NOT COOPERATING'.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 1600.00 [ICRA]D ISSUER NOT COOPERATING;
Rating moved to 'Issuer Not
Cooperating category'
Cash Credit 330.00 [ICRA]D ISSUER NOT COOPERATING;
Rating moved to 'Issuer Not
Cooperating category'
Non-fund
Based Limits 535.00 [ICRA]D ISSUER NOT CO-OPERATING;
rating moved to 'Issuer Not
Cooperating category'
As part of its process and in accordance with its rating agreement
with SKS Power Generation (Chhattisgarh) Limited, ICRA has been
trying to seek information from the entity so as to monitor its
performance. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, a rating view has been taken on the entity based on the best
available information.
SKS was originally promoted by SKS Ispat and Power Ltd for
development of a 1200-MW (4 x 300 MW) thermal power project, in two
phases of 600 MW (2 X 300 MW) capacity each, in the Raigarh
district of Chhattisgarh (CG). The company achieved CoD of the two
units under phase I in October 2017 and April 2018. Due to delayed
execution and significant escalation in project cost, the company
was unable to service its debt obligations in a timely manner.
Consequently, in accordance with the RBI circular on resolution of
stressed assets, the lenders opted for a change in management
through an open bidding process.
SNS STARCH LIMITED: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: SNS Starch Limited
311/A, MLA Colony
Road No. 12, Banjara Hills
Hyderabad, Telangana 500034
Insolvency Commencement Date: March 28, 2022
Court: National Company Law Tribunal, Hyderabad-I Bench
Estimated date of closure of
insolvency resolution process: September 18, 2022
(180 days from commencement)
Insolvency professional: Govada Venkata Subba Rao
Interim Resolution
Professional: Govada Venkata Subba Rao
Rajiv Swagruha Apartments
Block A 05, Flat 106
Classic Diamond Towers
Anand Nagar, GSI Bandlaguda
Next to D-Mart
Hyderabad, Telangana 500068
E-mail: govada.subbarao1@gmail.com
snsstarch.ip@gmail.com
Last date for
submission of claims: April 11, 2022
SUPERTECH: Buyers' Interests Will Be Shielded, Supreme Court Says
-----------------------------------------------------------------
Abraham Thomas at Hindustantimes reports that the Supreme Court on
April 4 said it will protect the interests of homebuyers in
Supertech's to-be-razed twin towers situated at Noida's Emerald
Court project from the ongoing insolvency proceedings against the
company, and directed the interim resolution professional to
separately deal with the refund claims of the buyers and the
creditors.
According to Hindustantimes, Supertech's erstwhile management told
the court that the demolition process will remain "untouched" by
the current proceedings against the company as well as the razing
of the twin towers in accordance with the Supreme Court's
August 31, 2021 order.
Hindustantimes relates that the order of the court came as a big
relief to homebuyers, whose money was stuck when the National
Company Law Tribunal (NCLT) on March 25, initiated insolvency
proceedings against Supertech on a plea by Union Bank of India over
unpaid loans to the tune of over INR400 crore. The NCLT appointed
Hitesh Goel as interim resolution professional (IRP) to manage the
affairs of the company even as Supertech claimed to be in the
process of filing an appeal before the National Company Law
Appellate Tribunal (NCLAT).
Till March 25, Supertech had settled refund claims over 652 of the
total 711 sold units in the twin towers, leaving just 59 homebuyers
having an outstanding principal amount of ₹14.96 crore, the
report says.
Hindustantimes relates that a bench of justices Dhananjaya Y
Chandrachud and Surya Kant directed the 59 homebuyers to submit
their claims by April 15 to the IRP, who will then calculate the
amount payable with interest and submit a report to the court by
April 30.
"The IRP shall indicate in the report the amount available with the
company that can reasonably be made available in the near future
from the running operations of the company that can be sufficient
to meet the claims of the homebuyers as per the judgment of August
31,2021," the bench said, and posted the matter for hearing on May
6.
Hindustantimes says the order of the court was passed on
suggestions made by advocate Gaurav Agrawal, assisting the court as
amicus curiae (friend of the court) who had consulted with the IRP
on the arrangements to be worked out as he received numerous calls
and representations by worried homebuyers of the twin towers.
Advocate Rishabh Parikh, appearing for the IRP, informed the court
that the portal created for receiving claims from financial
creditors had a separate tab for the twin tower homebuyers,
Hindustantimes relays. The erstwhile management represented by
senior advocate S Ganesh told the court that the company was
anxious to settle all refund claims but could not do so as the
necessary paperwork with regard to no objection certificate from
banks was not available before the order passed by NCLT.
"I do not want the corporate insolvency resolution proceedings to
stand in the way of refund to homebuyers," the report quotes Ganesh
as saying. On the ongoing demolition of the twin towers, he said,
"The demolition remains untouched by the present proceedings."
For the homebuyers, advocate Abraham Mathews told the court that
the insolvency proceedings could be a ploy by the company to defer
refund commitments, reports Hindustantimes.
By May, the demolition of the twin towers is expected to take place
as Supertech has already engaged the services of Edifice
Engineering.
The order to demolish the twin towers was first issued by the
Allahabad high court in April 2014, Hindustantimes recalls. On an
appeal by Supertech, the SC upheld the HC verdict and ordered
compensation. While most of the homebuyers who booked flats
initially either took refund or shifted to other Supertech
projects, only 252 homebuyers had stayed on with the project, the
report notes.
Supertech Ltd is a Noida-based property developer.
As reported in the Troubled Company Reporter-Asia Pacific on March
28, 2022, insolvency proceedings have been initiated against
Supertech Ltd after a National Company Law Tribunal (NCLT) bench on
March 25 admitted a petition filed by Union Bank of India for
non-payment of dues by the company. An interim resolution
professional (IRP) has also been appointed for Supertech,
superseding the company's board.
TEEKAY MARINES: ICRA Keeps B Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has retained the long-term and short-term ratings of Teekay
Marines Private Limited in the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]B (Stable)/[ICRA]A4; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based– 10.00 [ICRA]B (Stable); ISSUER NOT
Export Packing COOPERATING; Rating Continues
Credit (EPC) to remain under issuer not
cooperating category
Fund based– 3.00 [ICRA]B (Stable); ISSUER NOT
Foreign Bill COOPERATING; Rating Continues
Discounting (FBD) to remain under issuer not
cooperating category
Fund based– 1.50 [ICRA]B (Stable); ISSUER NOT
Standby Line COOPERATING; Rating Continues
of Credit (SLC) to remain under issuer not
cooperating category
Non-fund based– 0.30 [ICRA]A4 ISSUER NOT
Credit Exposure COOPERATING; Rating continues
Limit to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
TMPL was incorporated in April 2001 and is involved in the
processing and export of different varieties of shrimp and other
seafood. The company's processing facility is located at the
Chandaka Industrial Estate in Bhubaneswar, Odisha.TMPL is promoted
by Mr. T. K. Narayanan and his family.
THREE C: ICRA Keeps D Debt Rating in Not Cooperating Category
-------------------------------------------------------------
ICRA has retained the ratings for the Non-Convertible Debenture of
Three C Green Developers Private Limited in the 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA] D; ISSUER
NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-Convertible 225.00 [ICRA]D; ISSUER NOT
Debenture Program COOPERATING; Rating
Continues to remain
under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
TCGDPL, which was incorporated in December 2010, is involved in
real-estate development. At present, Xanadu Estates Pvt. Ltd. holds
75% of the company's shares, while the remaining 25% is held by
Xanadu Infra Developers Pvt Ltd. TCGDPL is developing a plotted
development project, Lotus Yardscape, with a saleable area of 90489
square yards, in Sports City, Noida. The other project, Lotus Arena
II, is being developed by its wholly owned subsidiary, Piyush IT
Solutions Private Limited.
VIJAYA RAJA: ICRA Keeps B+ Debt Rating in Not Cooperating
---------------------------------------------------------
ICRA has retained the long-term rating of Vijaya Raja Rajeswari
Constructions Private Limited in the 'Issuer Not Cooperating'
category. The rating is denoted as [ICRA]B+(Stable); ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 10.00 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Vijaya Raja Rajeswari Constructions Private Limited was
incorporated in 2007 and is engaged in the business of construction
of residential apartments in the states of Andhra Pradesh and
Telangana. The company is currently developing VRR Vaibhavam at an
estimated project cost of INR58.22 crore in Vijayawada on a land
area of 11527 sq yards; while ~50% of the project work has been
completed as on 30th November, 2016, the construction of the
project is expected to be completed by March, 2018.
VIKAS FILAMENTS: ICRA Keeps B+ Debt Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has retained the long-term and short term of Vikas Filaments
Private Limited in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]B (Stable)/[ICRA]A4; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.85 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 7.67 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Short Term- 0.15 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
To remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Vikas Filaments Private Limited (VFPL) was incorporated in the year
1993 by Mr. Banshidhar Singhal as private limited company and is
engaged in manufacturing of textured yarn. In 2005, the texturing
unit was transferred to Vishal Polyfilms Private Limited, a group
concern of VFPL. Since 2005, the company was engaged in trading of
Fully Drawn Yarn (FDY) as a dealer of Nova Petrochemicals Limited,
the same was discontinued in FY 2014. Subsequently, the company set
up a knitting unit with an installed capacity of 900 MTPA which
started commercial production in February 2012. Thereafter, the
company set up a sizing unit with an installed capacity of 2400
MTPA which started production in May 2013. Both manufacturing
facilities are based near Surat (Gujarat).
VIKAS KRISHI: ICRA Keeps B+ Debt Rating in Not Cooperating
----------------------------------------------------------
ICRA has retained the long-term of Vikas Krishi Seva Kendra in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 6.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based/CC COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Vikas Krishi Sewa Kendra is a proprietorship firm engaged in the
trading of seeds, fertilizers, pesticides, oil paints and color
etc. In seeds the firm trades in BT Cotton Seeds (T-1 and T-2
variety), hybrid Maize, Jowar, Wheat etc. In fertilizers, the firm
trades in UREA, Superphosphates, DAG etc. The firm also deals in
the pesticides and has dealership of Asian Paints.
VINAYAK INTERNATIONAL: ICRA Keeps D Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has retained the long-term and short-term ratings of Vinayak
International in the 'Issuer Not Cooperating' category. The ratings
are denoted as [ICRA]D/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 20.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short Term– 10.00 [ICRA]D; ISSUER NOT
COOPERATING;
Non-Fund Based/ Rating continues to remain under
Letter of Credit 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance, Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in the year 2005, Vinayak international is a
proprietorship concern of Mr. Vikas Agarwal engaged in
manufacturing and processing of (i) Cold rolled sheets (CR
sheets/coils) used in manufacturing of bicycles, furniture,
electrical panels etc as CR sheets have high strength, dent
resistance and tensile property (ii) Hot rolled sheets (HR
sheets/coils) mainly used in construction industry, manufacturing
of bicycles frames, engineering and military equipment's, LPG
cylinders, Shuttering plates etc (iii) Galvanized Plain Coils (GP
Coils) used in manufacturing of automobiles, washers , vending
machines, microwaves etc. Along with this, the firm is also engaged
in generation of wind energy having installed capacity of 600 Kw
located at Khala site in Jaisalmer which has been recently started
by the firm in November 2015.
WANDERLAND REAL: ICRA Keeps B Issuer Rating in Not Cooperating
--------------------------------------------------------------
ICRA has retained the long-term of Wanderland Real Estates Pvt.
Ltd. in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]B (Stable): ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Issuer ratings - [ICRA]B (Stable); ISSUER NOT
COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in 2006, WREPL, is part of Kalani Group and is
currently developing an integrated township named 'Treasure
Fantasy' located at Car-Rau road, Rangwasa, Indore. Spread over 190
acres of land, the project comprises plots, commercial,
residential/villas and flats with total saleable area of 42 lakh
sqft. The project construction started in April 2010 and is
expected to be completed by March 2022. WREPL started trading
business in September 2018. It is export-oriented and involves
trade of flexible bulk intermediate containers (FIBC), BOPP woven
bags sourced from the group company, Flexituff Ventures
International Limited.
=================
I N D O N E S I A
=================
PLAZA INDONESIA: Moody's Withdraws 'Ba2' Corporate Family Rating
----------------------------------------------------------------
Moody's Investors Service has withdrawn Plaza Indonesia Investama
(P.T.) (PII)'s Ba2 corporate family rating and its stable outlook.
RATINGS RATIONALE
Moody's has decided to withdraw the rating for its own business
reasons.
COMPANY PROFILE
Plaza Indonesia Investama (P.T.) (PII) is a special-purpose company
of Dana Investasi Real Estat (DIRE) Simas Plaza Indonesia, a real
estate investment fund in Indonesia. On behalf of the fund, PII
holds an asset portfolio comprising two shopping malls, one office
tower and a hotel in Jakarta, through its ownership of a 96.61%
stake in Plaza Indonesia Realty Tbk (P.T.) and a 99.99% stake in
Sarana Mitra Investama (P.T.).
DIRE Simas Plaza Indonesia was listed on the Indonesian Stock
Exchange on July 4, 2019. The unitholders are Bumi Serpong Damai
TBK (P.T.) (Ba3 stable), PT Indonesian Paradise Property Tbk,
Hankyu Hanshin Properties JOIN LLC and Rosano Barack.
PT JAPFA COMFEED: S&P Affirms 'BB-' ICR & Alters Outlook to Neg.
----------------------------------------------------------------
S&P Global Ratings, on April 5, 2022, revised its outlook on PT
Japfa Comfeed Indonesia Tbk. to negative from stable. At the same
time, S&P affirmed its 'BB-' long-term issuer credit and issue
ratings on the company.
The negative outlook reflects the likelihood of a downgrade upon
the completion of the proposed distribution by Japfa, which will
weaken its credit quality. As a result, PT Japfa's SACP will no
longer benefit from the one-notch uplift.
S&P believes PT Japfa Comfeed Indonesia Tbk.'s credit quality will
weaken upon the completion of a proposed distribution in specie by
its Singapore-based parent, Japfa Ltd. (Japfa). Japfa has proposed
to distribute the entire shareholding of its dairy business to its
shareholders.
The credit quality of Japfa will likely weaken following the
completion of distribution in specie of its entire shareholding in
the AustAsia dairy business. Japfa will lose the diversification
benefits derived from its China-based dairy business. This includes
a higher operating margin and comparatively stable revenue stream
supported by favorable demand/supply outlook in China. Japfa's
overall scale will reduce materially, given that the dairy business
contributed 30% of Japfa's consolidated EBITDA in 2021. AustAsia's
operating profit margin was 20% in 2021 compared with Japfa group's
overall margin of 7.2%.
A proposed listing of AustAsia is still subject to the approval of
the Hong Kong stock exchange, where we have limited visibility on
the timing.
S&P said, "On a pro forma basis, we expect Japfa's ratio of funds
from operations (FFO) to interest to decline to 3.3x from 4.3x
based on 2021 results, while its ratio of debt to EBITDA will
remain around the same level at about 3x. Japfa will not receive
cash from the listing.
"Because Japfa's business profile will solely reflect its animal
protein business after the distribution, the company's credit
quality will likely converge with PT Japfa's SACP of 'b+'. We
forecast PT Japfa will account for 80%-90% of Japfa's consolidated
EBITDA going forward, from around 50% in 2021.
"The rating on PT Japfa is currently one notch above the company's
SACP, reflecting our view that PT Japfa is a core subsidiary of
Japfa , which we assess has a group credit profile of 'bb-'.
"We believe Japfa would provide extraordinary financial support to
PT Japfa, if needed. This is because PT Japfa remains a critical
part of the parent's long-term strategy to build multiple sources
of animal proteins in different countries in Asia. We expect PT
Japfa's operations, financial strategy, and risk management will
remain closely linked to those of the parent."
Japfa's animal protein business faces headwinds over the next
six-to-12 months. Japfa's animal protein business will face
headwinds in 2022 owing to margin compression and an increasing
working capital requirement because of elevated raw material
prices.
S&P said, "We believe prices for key raw materials will likely stay
at an elevated level in 2022, caused by supply shortages from
post-pandemic demand recovery and ongoing conflict between Russian
and Ukraine, considering both countries are key food producers
globally. Corn and soybean are the major inputs for poultry feeds
and have seen a price surge in Indonesia and globally since the
first half of 2021. At the same time, we expect breeding margins to
decline from their higher-than-average level last year. Overall, we
expect PT Japfa's EBITDA margin to drop to 9%-9.5% in 2022,
compared with 10.5% in 2021 and 11.2% in 2020.
"High raw material costs will also increase inventory and working
capital requirements for PT Japfa. We expect working capital to
grow further in 2022, but to a lesser extent than the Indonesian
rupiah (IDR) 2.5 billion increase in 2021." That increase was
driven mainly by higher feed raw material costs and inventory
restocking post COVID-19 lockdowns to meet demand recovery.
Animal protein demand in Vietnam should see a gradual recovery in
2022 with easing social restrictions and a reopening to
international tourists. That said, the resurgence of African swine
fever since late 2021 could delay Japfa's operational recovery in
Vietnam.
Japfa will reduce its capital expenditure (capex) intensity, and
should meet the majority of funding needs with internal cash
generation. S&P said, "We estimate Japfa's annual capex in 2023
(excluding AustAsia) to fall by 20%-30% from our forecast prior to
the proposed distribution. Japfa ramped up its capex for building a
swine breeding pyramid in Vietnam, and capacity expansion in
Indonesia such as own commercial farms. We anticipate PT Japfa's
annual capex to be IDR2.1 trillion-IDR2.3 trillion in 2022 and
IDR2.5 trillion-IDR2.7 trillion in 2023."
S&P said, "Previously, we assumed Japfa will build two new dairy
farms in China over the same period. The dairy business is more
capital intensive and the lead time from construction to reaching
stable milking production could take between three to four years.
"We expect Japfa and PT Japfa to fund the majority of its capex
using internally generated operating cash flow over the next two
years, reducing the need for additional debt. That said, higher
working capital needs will still contribute to a weaker FFO-to-debt
ratio of 26%-28% compared to 29.2% in 2021."
The negative outlook reflects the likelihood of a downgrade upon
the distribution of the dairy business by Japfa to its
shareholders, which will likely weaken the credit quality of Japfa
and PT Japfa.
S&P would lower the rating on PT Japfa if and when the listing of
Japfa's dairy business AustAsia and distribution in specie becomes
highly likely to complete.
Regardless of the AustAsia listing, S&P may also lower the rating
if:
-- The liquidity profiles of PT Japfa or Japfa Ltd. weaken notably
due to an increase in negative working capital needs, greater use
of short-term debt, or weaker access to bank credit lines. The
ratio of sources to uses of liquidity staying below 1.2x could
indicate such weakness.
-- There are signs of weakened group support from Japfa Ltd. to PT
Japfa such that S&P no longer believe the parent will provide
extraordinary support to PT Japfa under all foreseeable
circumstances.
-- S&P lower its assessment of PT Japfa's stand-alone credit
profile as a result of the company failing to sustain its FFO cash
interest coverage above 3.0x. This could occur if PT Japfa's EBITDA
margin contracts more than expected or its capex is persistently
higher than its operating cash flow.
-- S&P may revise the outlook to stable if the listing of AustAsia
falls through and Japfa Ltd. maintains its liquidity position.
PT Japfa is a producer of animal feed and day-old chicks, and
engages in commercial farming in Indonesia. It is the
second-largest player in the poultry business, behind its largest
competitor PT Charoen Pokphand Indonesia Tbk (CPI). PT Japfa had
revenue of IDR44.8 trillion and reported EBITDA of about IDR4.5
trillion for the year ended Dec. 31, 2021. Poultry-related
businesses constitute around 89% of the company's total revenues.
PT Japfa was founded in 1971, is headquartered in Jakarta, and
operates as a subsidiary of Singapore-listed Japfa Ltd.
Japfa Ltd. is a pan-Asian industrialized agri-food company
headquartered in Singapore. It has a vertically integrated business
model--from animal feed production and breeding to commercial
farming and food processing on five proteins: poultry, swine, beef,
aquaculture, and dairy. The group operates in five countries:
Indonesia, Vietnam, China, Myanmar, and India. Japfa Ltd. owns 55%
of PT Japfa.
===============
M A L A Y S I A
===============
1MDB: U.S. Jury Begins Deliberations in Ex-Goldman Banker's Trial
-----------------------------------------------------------------
Luc Cohen at Reuters reports that a U.S. jury began deliberations
on April 5 in the trial of a former Goldman Sachs banker accused of
helping loot billions of dollars from Malaysia's 1MDB sovereign
wealth fund.
Reuters relates that prosecutors said Roger Ng, Goldman's former
top investment banker for Malaysia, helped his former boss Tim
Leissner embezzle money from 1MDB, launder the proceeds and bribe
officials to win business for Goldman.
The Malaysian fund had been founded to pursue development projects
in the Southeast Asian country.
Mr. Ng, 49, has pleaded not guilty to conspiring to launder money
and violating an anti-corruption law.
His lawyers said Mr. Leissner, who pleaded guilty to similar
charges in 2018 and agreed to cooperate with prosecutors, falsely
implicated Mr. Ng in the hope of receiving a lenient sentence.
The charges stemmed from one of the biggest financial scandals in
history.
According to Reuters, U.S. prosecutors said Goldman helped 1MDB
raise $6.5 billion through three bond sales, but $4.5 billion was
diverted to government officials, bankers and their associates
through bribes and kickbacks.
In a nearly two-month trial in Brooklyn federal court, jurors heard
nine days of testimony from Mr. Leissner, who said he sent Mr. Ng
$35 million in kickbacks.
Mr. Leissner said the men agreed to tell banks a "cover story" that
the money was from a legitimate business venture between their
wives.
Mr. Ng's wife, Hwee Bin Lim, later testified for the defense that
the business venture was, in fact, legitimate.
She said she invested $6 million in the mid-2000s in a Chinese
company owned by the family of Mr. Leissner's wife at the time, and
the $35 million was her return on that investment, Reuters relays.
According to Reuters, Mr. Ng's lawyer, Marc Agnifilo, emphasized to
jurors in his closing argument on April 4 that Mr. Leissner could
not be trusted.
Alixandra Smith, a prosecutor, said in her closing argument that
other evidence backed up Mr. Leissner's testimony.
Mr. Ng will likely be the only person to face a U.S. trial over
1MDB, Reuters notes.
Goldman in 2020 paid a nearly $3 billion fine and its Malaysian
unit agreed to plead guilty.
The scheme's suspected mastermind, Malaysian financier Jho Low, was
indicted alongside Ng in 2018 and remains at large, the report
says.
About 1MDB
Kuala Lumpur-based 1Malaysia Development Bhd (1MDB) is an insolvent
Malaysian strategic development company, wholly owned by the
Malaysian Minister of Finance. 1MDB was established in 2009 to
foster long-term economic development for the country by forging
global partnerships, particularly in energy, real estate, tourism,
and agribusiness.
The Company was founded shortly after Dato Sri Najib Razak became
Prime Minister of Malaysia in July 2009. Najib said the
establishment of 1MDB into a federal entity was to benefit a
majority of Malaysians.
1MDB is said to have raised billions of dollars in bonds, for
investment projects and joint ventures, between 2009 and 2013.
Among those projects are the Tun Razak Exchange, Tun Razak
Exchange's sister project Bandar Malaysia, and the acquisition of
three independent power producers.
The Company came into heavy scrutiny in 2015 for suspicious money
transactions and evidence pointing to money laundering, fraud and
theft. The corruption scandal in 1MDB has implicated high-level
officials, including Prime Minister Najib Razak, as wells as banks
and financial institutions around the world.
In 2016, the U.S. Department of Justice filed a lawsuit, alleging
that at least US$3.5 billion has been stolen from 1MDB. In
September 2020, the alleged amount stolen had been raised to US$4.5
billion and a Malaysian government report listed 1MDB's outstanding
debts to be US$7.8 billion.
Malaysia has been filing lawsuits over the years in an effort to
recover the missing billions of dollars. Among others, in May
2021, Malaysia filed 22 civil suits against entities and people
involved in the corruption scandal, including units of Deutsche
Bank and JP Morgan.
Malaysia said in September 2020 it has so far recovered about
US$3.24 billion in assets linked to the 1MDB matter. This amount
includes about US$600 million cash and assets returned by U.S.
authorities; about US$2.5 billion paid by Goldman Sachs as
settlement; as well as US$780 million in settlement amounts from
Malaysian banking group AmBank and audit firm Deloitte.
=====================
N E W Z E A L A N D
=====================
AQUA SYNERGY: Damien Mitchell Grant Appointed as Receiver
---------------------------------------------------------
Damien Mitchell Grant on March 30, 2022, was appointed as receiver
and manager of Aqua Synergy Group (S.I) Limited.
The receiver and manager may be reached at:
Damien Mitchell Grant
Waterstone Insolvency
16 Piermark Drive
Rosedale, Auckland 0632
BOULD HOLDINGS: Creditors' Proofs of Debt Due on April 29
---------------------------------------------------------
Creditors of Bould Holdings Limited are required to file their
proofs of debt by April 29, 2022, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on March 29, 2022.
The company's liquidator is:
Heath Gair
Palliser Insolvency
PO Box 57124
Mana, Porirua 5247
CAMERONS CLOTHING: Owes NZD900,000 to Nearly 100 Creditors
----------------------------------------------------------
Riley Kennedy at Otago Daily Times reports that Camerons Clothing
Ltd owes about NZD900,000 to nearly 100 creditors and some are
unlikely to get their money back, a liquidators report has
revealed.
ODT relates that the clothing store, which operated in Oamaru,
Waimate and Timaru, was placed into liquidation late last month by
its shareholders, who cited the effects of Covid-19 on the trading
of the business and the public's changing buying habits.
Iain Nellies, of Insolvency Management Ltd Dunedin, was appointed
liquidator and in his report said it was unlikely unsecured
creditors would get their money, according to ODT. On April 1, the
company's first liquidation report was filed on the Companies
Office website, which found Camerons Clothing owed NZD908,000 to 92
creditors.
Of that, just over NZD663,000 was owed to secured creditors.
According to ODT, the report listed multiple clothing brands, such
as Adidas, Swanndri, Rip Curl, and the Bank of New Zealand as
secured creditors.
Preferential creditors - which were owed NZD55,000 - were listed as
Inland Revenue and the company's staff.
Although the company's total assets were not known, the report's
statement of financial position showed that Camerons Clothing was
owed about NZD36,000 in accounts receivable.
It had NZD5000 worth of plant, the report, as cited by ODT, said.
The liquidator was also aware of various stock, plant, equipment,
and vehicles owned by the company, some of which were subject to
specific security interests, it said.
Based on the information available, it seemed unlikely that there
would be money left over for unsecured creditors, ODT relays.
Secured and preferential creditors, such as employee claims,
certain IRD claims and hire purchase contracts would take
priority.
"However, until the records of the company have been examined and
investigations into the company's affairs have been completed this
will not be confirmed," the report said.
It was expected that the liquidation would be completed by late
December this year, ODT notes.
The next report was due in September.
ORAKA TECHNOLOGIES: Creditors' Proofs of Debt Due on July 29
------------------------------------------------------------
Creditors of Oraka Technologies Limited are required to file their
proofs of debt by July 29, 2022, to be included in the company's
dividend distribution.
Thomas Lee Rodewald of Rodewald Consulting was appointed as
liquidator of Oraka Technologies by an order of the High Court at
Hamilton on April 4, 2022.
The company's liquidator can be reached:
Thomas Lee Rodewald
Rodewald Consulting Limited
Level 1, The Hub
525 Cameron Road (PO Box 15543)
Tauranga 3144
OTAGO HOMES: Building Firm Placed Into Liquidation
--------------------------------------------------
Riley Kennedy at Otago Daily Times reports that an Otago building
company has been placed into liquidation following a meeting of its
creditors.
In February, Otago Homes Ltd, a franchise of Landmark Homes, was
placed into voluntary administration.
Last week, a watershed meeting of creditors - which included
building merchants, subcontractors and tradespeople - was held in
Queenstown to determine whether to execute a deed of company
arrangement, bring the administration to an end, or place the
company into liquidation, ODT says.
On April 4, a public notice was issued stating the company had been
placed into liquidation.
Thomas Lee Rodewald, of Rodewald Consulting, was appointed
liquidator, ODT discloses.
Landmark chief executive Gary Woodhouse told RNZ in February the
franchisee had essentially "run out of money" after struggling with
materials and skills shortages in the face of "extreme" housing
demand.
Otago Homes had three people on its staff and one director, Andrew
Lawrence. At the time Otago Homes was placed into administration,
the company had eight builds under way in the Otago region.
The Companies Office listed Otago Homes' owners as two trusts -
Auckland-based Capri Trustee Company Ltd and Tauranga-based Sharp
Tudhope Trustee Services No 22 Ltd.
=====================
P H I L I P P I N E S
=====================
PHILIPPINE CROP: DOF Revives Plan to Convert PCIC Into Reinsurer
----------------------------------------------------------------
Lawrence Agcaoili at The Philippine Star reports that the
Department of Finance (DOF) has revived plans to convert state-run
Philippine Crop Insurance Corp. (PCIC) into a reinsurer to improve
its financial health and operations, providing more insurance for
farmers and their crops.
Instead of just absorbing all the risks, Finance Secretary and PCIC
board chairman Carlos Dominguez said PCIC could cover more people
if they do reinsurance with an annual budget of
PHP4.5 billion, the Star relates.
"The other thing is they are absorbing all the risks. In insurance,
you never do that and you always share the risks. You know, it's
not good practice to totally insure," the Star quotes Mr. Dominguez
as saying.
According the Star, Mr. Dominguez earlier asked the PCIC to
identify where it uses the subsidies it gets from the state in
order to make sure that the taxpayer is getting value for his
money.
While Mr. Dominguez said the government would continue subsidizing
the PCIC to help in its mandate to provide insurance to farmers and
their crops against disaster losses, the agency needs to report its
expenditures and compare it with firms engaged in similar trade.
Mr. Dominguez earlier said subsidies extended to the PCIC in the
past two decades reached PHP28.8 billion, the bulk of which, at
PHP23.3 billion, came from the national budget, while the other
PHP5.3 billion originated from loan penalties collected from banks,
the report relays.
Further, Mr. Dominguez directed the PCIC to act on the proposal
filed by the Insurance Commission (IC) to review its assumption on
risk premium rate in pricing its products and services.
The Star relates that the IC reported that the bulk of the PCIC's
assets, at about 40 percent, revolve on cash in banks and time
deposits, exposing the crop insurer to financial imbalance on lack
of investment income to bankroll its operations.
As such, the IC warned that taxpayers would end up paying for
additional costs the PCIC may incur in the event calamities strike
its clients and claim their insurance.
"They were not doing the accounting correctly. Their contingent
liabilities were understated and we really have to fix it," the
report quotes Mr. Dominguez as saying.
Aside from enhancing accounting practices, Mr. Dominguez told the
PCIC to find out whether its Southeast Asian counterparts cover
damage from diseases and pests, or if they only insure losses to
natural causes like typhoons.
=================
S I N G A P O R E
=================
INDIA INVESTMENTS: Creditors' Proofs of Debt Due on May 6
---------------------------------------------------------
Creditors of India Investments II Pte. Limited are required to file
their proofs of debt by May 6, 2022, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on March 28, 2022.
The company's liquidators are:
Lim Loo Khoon
Tan Wei Cheong
6 Shenton Way, OUE Downtown 2
#33-00, Singapore 068809
ROTARY PILING: Court to Hear Wind-Up Petition on April 22
---------------------------------------------------------
A petition to wind up the operations of Rotary Piling Pte Ltd will
be heard before the High Court of Singapore on April 22, 2022, at
10:00 a.m.
Hong Leong Finance Limited filed the petition against the company
on March 30, 2022.
The Petitioner's solicitors are:
Michael BB Ong & Co
No. 10 Anson Road
#33-06 International Plaza
Singapore 079903
XIHE HOLDINGS: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Singapore entered an order on March 24, 2022, to
wind up the operations of Xihe Holdings (Pte) LTD.
The company's liquidators are:
Seshadri Rajagopalan
Paresh Tribhovan Jotangia
Ho May Kee
8 Marina View
#40-04/05 Asia Square Tower 1
Singapore 018960
=================
S R I L A N K A
=================
SRI LANKA: Revokes Emergency With Rajapaksa Facing Calls to Quit
----------------------------------------------------------------
Bloomberg News reports that supporters of Sri Lankan President
Gotabaya Rajapaksa said he will not resign under any circumstance
after his government was left with a minority in parliament, making
it tougher to resolve an economic crisis that has brought people to
the streets.
According to Bloomberg, Rajapaksa is struggling to assemble a team
to seek a bailout from the International Monetary Fund after his
finance minister resigned within 24 hours of being sworn in.
Bloomberg says the former military officer repealed a five-day-old
emergency order late on April 5 as crowds of protesters defied the
proclamation that had given him sweeping powers to detain people
and seize property.
Bloomberg relates that the protesters' calls for the leader to
resign were reflected in parliament with 42 lawmakers from the
ruling coalition saying they will vote as independents, leaving the
government with less than the 113 needed to maintain a simple
majority. However, the remaining legislators supporting Rajapaksa
said the leader will not be stepping down.
"I would like to remind that 6.9 million voted for the president,"
the report quotes Johnston Fernando, the chief government whip, as
saying in parliament on April 6. "We are saying as government, that
under no circumstance, will the president resign. We will face
this."
With a minority in parliament, a new prime minister can be
appointed by the president to replace his brother Mahinda
Rajapaksa, or snap elections can be called, Bloomberg says.
The speaker, a Rajapaksa ally, earlier rejected the opposition's
proposal for parliament to ask the president to step down, saying
it had no democratic right to do so, the Daily Mirror reported,
Bloomberg relays. He reiterated the president's offer for the
opposition to take part in an interim government to resolve the
crisis that has seen inflation accelerate to the fastest pace in
Asia.
Bloomberg relates that opposition groups have repeatedly refused to
join a caretaker government after the entire cabinet resigned
following street protests by citizens. They first want to see a
change to the country's constitution that will limit Rajapaksa's
wide-ranging executive powers, which include calling for elections
mid-way through a five-year parliament term and appointing and
firing government officials and judges.
Rajapaksa, who usually issues late night gazettes, has yet to
address parliament and the country over the political situation.
In a blow to the administration, Finance Minister Ali Sabry
resigned in less than 24 hours after he was appointed by Rajapaksa,
Bloomberg says. He would have been a key member of the team
negotiating with the IMF and local media reported that negotiations
were ongoing for his replacement.
According to Bloomberg, global asset managers including Fidelity
Investments and T. Rowe Price Group are staring down the risk of
default. Holders for which data is available are estimated to own
4% of the outstanding debt, and the amounts would constitute a
small portion of the firms' overall assets.
The Sri Lankan rupee plunged 4.5% to 312 per dollar on April 6, a
record low, Bloomberg discloses. The 5.875% dollar bond maturing in
July dropped nearly 6% to trade at 56 cents on the dollar, the
lowest since it was issued a decade ago. Neuberger Berman, who is
the biggest holder of those bonds, said it will continue to hold
the debt as the recent selloff has made prices relatively
attractive.
Bloomberg says the protests, which started last month, were
initially against shortages of food, surging living costs and
13-hour power cuts but have now become calls for Rajapaksa and his
family to step down. Last week, a crowd gathered at the president's
private home and clashed with the police that initially prompted
the emergency declaration.
Sri Lankans have defied the curfews and continued to gather across
the country, holding up placards that said "Gota, Go Home." Dozens
of them were gathering near the homes of the prime minister and
former cabinet members as well as the heavily-guarded parliament
house on Tuesday.
In a reflection of the economic squeeze, Sri Lanka temporarily
closed its embassies in Oslo and Baghdad, and the consulate general
in Sydney due to the "foreign currency constraints faced by the
country," adds Bloomberg.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2022. All rights reserved. ISSN: 1520-9482.
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