/raid1/www/Hosts/bankrupt/TCRAP_Public/250306.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, March 6, 2025, Vol. 28, No. 47
Headlines
A U S T R A L I A
AFG 2025-1NC: S&P Assigns B (sf) Rating to Class F Notes
ALUMINA PTY: Fitch Publishes 'BB+' First LT IDR, Outlook Stable
APOLLO SERIES 2025-1: S&P Assigns BB (sf) Rating to Class E Notes
EX PRODUCTS: First Creditors' Meeting Set for March 12
FINNISH EARLY: First Creditors' Meeting Set for March 12
HEALTHSCOPE: Di Pilla Closes in as Operator Fails to Pay Rent
JERVOIS GLOBAL: Shareholders Sue to Stop 'Rushed' Bankruptcy
MSJP INVESTMENTS: First Creditors' Meeting Set for March 13
NRY INVESTMENT: First Creditors' Meeting Set for March 14
ONESTEEL MANUFACTURING: Bleeding AUD1.5MM a Day Before Collapse
ONESTEEL MANUFACTURING: GFG Alliance Remains Largest Creditor
STAR ENTERTAINMENT: Set to Run Out of Cash Before The Weekend
SWANSHORE PTY: First Creditors' Meeting Set for March 13
TAURUS 2024-1PP TRUST: Moody's Ups Rating on Class F Notes to Ba3
C H I N A
LONGFOR GROUP: S&P Downgrades ICR to 'BB', Outlook Negative
H O N G K O N G
NEW WORLD: Debt Cut Plans Lift Shares but Analysts Remain Cautious
PHYSICAL FITNESS: High Court Enters Wind-Up Order of Unit
I N D I A
ABHISHEK PROPBUILD: CARE Reaffirms D Rating on INR129.30cr LT Loan
AHAN ADD-CHEM: CARE Keeps D Debt Rating in Not Cooperating
AIMS OXYGEN: CARE Lowers Rating on INR10cr LT Loan to B-
ALLIANCE INFRA: CRISIL Keeps B+ Debt Rating in Not Cooperating
APG SHIMLA: CARE Keeps D Debt Rating in Not Cooperating Category
BTM EXPORTS: CARE Keeps D Debt Rating in Not Cooperating Category
CHHABEELA ENERGY: CRISIL Keeps B+ Debt Ratings in Not Cooperating
CHOPRA HOTEL: CRISIL Keeps D Debt Rating in Not Cooperating
ESHAN YARNS: CARE Keeps D Debt Rating in Not Cooperating Category
FIVE CORE: CARE Keeps D Debt Ratings in Not Cooperating Category
INTERLINK FOODS: CRISIL Moves B Debt Rating from Not Cooperating
MANTRI DEVELOPERS: CARE Reaffirms D Rating on INR230cr LT Loan
MGM INFRA: CARE Keeps D Debt Rating in Not Cooperating Category
MSR INDIA: CRISIL Keeps D Debt Ratings in Not Cooperating
ORAVEL STAYS: S&P Assigns 'B' Long-Term ICR, Outlook Stable
OZONE INFRA: CRISIL Keeps B+ Debt Rating in Not Cooperating
PELLET-ENERGY SYSTEMS: CARE Keeps D Rating in Not Cooperating
PRITI GEMS: CARE Keeps D Debt Rating in Not Cooperating Category
R. M. AUTO: CARE Keeps C Debt Rating in Not Cooperating Category
RAIGARH FOODS: ICRA Keeps D Debt Ratings in Not Cooperating
RAJASTHAN TUBE: ICRA Keeps C Debt Ratings in Not Cooperating
RAVINDRA RICE: ICRA Keeps D Debt Rating in Not Cooperating
SFPL CROP: CRISIL Keeps D Debt Ratings in Not Cooperating
SHEETAL AGRO: CARE Keeps D Debt Rating in Not Cooperating Category
SHIVA PARBOILED: CRISIL Keeps B+ Debt Rating in Not Cooperating
SHUSHRUSHA CITIZENS: CRISIL Keeps B Ratings in Not Cooperating
SLN RICE: ICRA Keeps B+ Debt Rating in Not Cooperating Category
SUDERSHAN CASTING: CRISIL Keeps B Debt Rating in Not Cooperating
VASU COCO: ICRA Keeps D Debt Rating in Not Cooperating Category
VIYYAT POWER: ICRA Keeps B+ Debt Ratings in Not Cooperating
N E W Z E A L A N D
GREENFERN INDUSTRIES: Waterstone Insolvency Appointed as Receivers
GURU NZ: McGrathNicol Appointed as Receivers
HAMMED PROPERTIES: Creditors' Proofs of Debt Due on March 27
HILL'S RETAILERS: Creditors' Proofs of Debt Due on April 11
LEISURE SPAS: Falls Into Liquidation With NZD1.7 Million Shortfall
MAX FORTUNA: Creditors' Proofs of Debt Due on March 27
S I N G A P O R E
FY GROUP: Court to Hear Wind-Up Petition on March 14
GRIDLINE DESIGN: Court Enters Wind-Up Order
TWINCO HOLDING: Commences Wind-Up Proceedings
VIKUDHA GLOBAL: Commences Wind-Up Proceedings
YEAP TRANSPORT: Court Enters Wind-Up Order
S O U T H K O R E A
HOMEPLUS CO: Enters Court-Led Rehabilitation Amid Credit Crunch
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A U S T R A L I A
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AFG 2025-1NC: S&P Assigns B (sf) Rating to Class F Notes
--------------------------------------------------------
S&P Global Ratings assigned its ratings to eight of the nine
classes of nonconforming and prime residential mortgage-backed
securities (RMBS) issued by Perpetual Corporate Trust Ltd. as
trustee for AFG 2025-1NC Trust in respect of Series 2025-1NC.
The ratings reflect the following factors.
S&P has assessed the credit risk of the underlying collateral
portfolio, and it believes the credit support is sufficient to
withstand the stresses it applies. Credit support for the rated
notes comprises note subordination and excess spread, if any.
The transaction structure includes retention amount and
amortization ledger mechanisms, under which excess spread--to the
extent available--is applied toward principal repayment
respectively of the most junior rated notes and the most senior
rated notes then outstanding.
The various mechanisms to support liquidity within the transaction,
including a liquidity facility equal to 1.5% of the aggregate
outstanding amount of the notes, subject to a floor of A$1,050,000,
and the principal draw function are sufficient to ensure timely
payment of interest.
There is an extraordinary expense reserve of A$150,000 funded by
AFG Securities Pty Ltd. on the closing date to meet extraordinary
expenses. The reserve is to be topped up from excess spread, if
any, to the extent it has been drawn.
S&P's ratings also reflect the counterparty exposure to National
Australia Bank Ltd. as liquidity facility provider and bank account
provider. The transaction documents for the liquidity facility and
bank account include downgrade language consistent with S&P Global
Ratings' counterparty criteria.
Ratings Assigned
AFG 2025-1NC Trust in respect of Series 2025-1NC
Class A1-S, A$210,000,000: AAA (sf)
Class A1-L, A$350,000,000: AAA (sf)
Class A2, A$86,800,000: AAA (sf)
Class B, A$19,390,000: AA (sf)
Class C, A$13,860,000: A (sf)
Class D, A$8,400,000: BBB (sf)
Class E, A$5,600,000: BB (sf)
Class F, A$3,150,000: B (sf)
Class G, A$2,800,000: Not rated
ALUMINA PTY: Fitch Publishes 'BB+' First LT IDR, Outlook Stable
---------------------------------------------------------------
Fitch Ratings has published Alumina Pty Ltd.'s first-time Long-Term
Issuer Default Rating (IDR) of 'BB+' with a Stable Rating Outlook.
Fitch has also published a 'BB+' rating with a Recovery Rating of
'RR4' to Alumina Pty 's senior unsecured notes.
Proceeds of the proposed Alumina Pty notes are intended to be made
available to Alcoa Nederland Holding B.V. to facilitate a
concurrent tender offer of a like principal amount of Alcoa
Nederland notes.
The ratings reflect Alcoa Corporation's leading positions in
bauxite, alumina and aluminum, and solid cost position and control
over spending. The scope of its operations as well as cost and
spending management affords the flexibility necessary to navigate
through the volatility in the aluminum and alumina markets. The
Stable Outlook reflects Fitch's expectations of Alcoa's EBITDA
leverage being generally below 2.5x and not exceeding 3.5x.
Key Rating Drivers
Ratings Consolidated With Alcoa: Fitch consolidates the ratings of
Alumina Pty Ltd with those of Alcoa Nederland Holding B.V.
(BB+/Stable), and further consolidates them with Alcoa Corporation
(BB+/Stable), under the stronger subsidiary path under Fitch's
Parent and Subsidiary Rating Linkage Rating Criteria. This is due
to the strong operational and strategic linkages between the
entities. Alumina Pty's proposed senior unsecured notes will
benefit from guarantees by Alcoa Corporation and certain
subsidiaries, the same entities that guaranty the existing Alcoa
Nederland senior unsecured notes.
Variable Profitability, Increased Debt-Load: Fitch believes Alcoa's
goal of deleveraging toward modest debt levels and retaining high
cash balances is prudent given the swings in profitability since
its inception. Over the past nine years, EBITDA has ranged from
about $500 million (2023) to over $3 billion (2018). Despite
extraordinarily high alumina and above-average aluminum prices,
recent results are still below the average of the previous eight
years.
Fitch expects alumina prices to moderate as new supply from
Indonesia and China becomes available. Fitch projects Alcoa's 2025
EBITDA at around $1.6 billion. If losses at Alcoa's smelter
operation in San Ciprian, Spain are higher than expected and
markets are weaker than expected, leverage could rise above the
rating sensitivities, especially considering the $750 million debt
raised in 2024. Fitch believes the pending restructuring of the San
Ciprian operations to restore profitability will be complex and
Alumina Acquisition Long-term Positive: The Alcoa's acquisition of
the remaining 40% stake in Alumina World Alumina and Chemicals
(AWAC) is positive to the company's long-term credit profile as it
enhances its cash flow generation. The acquisition enables more
agile management and creates synergies by operating the business as
a subsidiary rather than a joint venture. In addition,
distributions to non-controlling interests have been meaningful and
high during periods of constrained alumina or bauxite supply.
Credit Conscious Capital Allocation: Fitch expects share
repurchases to be limited while Alcoa focuses on deleveraging and
innovation project spending to be funded in a credit-conscious
manner. Fitch assumes that capital allocation will be balanced
relative to the company's commitment to a strong balance sheet,
evidenced by the company's modest dividend. Fitch expects capex to
remain elevated over the next few years if earnings are supportive,
but notes that there is some flexibility.
Sensitivity to Aluminum Prices: Fitch assumes average London Metal
Exchange (LME) aluminum prices for full year 2025 of $2,400/tonne
(t), falling to $2,300/t thereafter. While bauxite and alumina are
priced relative to market fundamentals and the alumina segment
accounted for more than two thirds of Alcoa's aggregate segment
adjusted EBITDA in FY 2024, bauxite and alumina prices are
sensitive to aluminum prices over the long run. Alcoa estimates a
$100/t change in the LME price of aluminum affects segment adjusted
EBITDA by $215 million, including the effect of the power
LME-linked agreements.
U.S. Tariffs Impacts Uncertain: Fitch believes that the U.S.
premium to London Metal Exchange price would need increase to
offset the proposed section 232 aluminum tariff increase to 25%, if
applied to imports from all regions in order to attract the imports
the U.S. needs. The increased cost to U.S. consumers of the metal,
however, may result in demand destruction and/or shifts in
downstream production to other regions resulting in second order
impacts. Its rating case for Alcoa does not factor in any cut to
shipments, decline in realizations, or increased costs associated
with potential tariff impacts.
Low-Cost Position: Alcoa's cost position and operational
diversification provide financial flexibility through the cycle.
CRU International Limited assesses Alcoa's bauxite costs in the
first quartile, alumina costs in the second quartile and aluminum
costs in the second quartile of 2025 global production costs. Most
of Alcoa's alumina facilities are located next to its bauxite
mines, cutting transportation costs and allowing consistent feed
and quality. Aluminum assets benefit from prior optimization and
smelters co-located with cast houses to provide value-added
products, including slab, billet and alloys.
Derivation Summary
Although Alcoa is larger and more diversified, its earnings are
more volatile than its metal peers Commercial Metals Company
(BB+/Positive), Carpenter Technology Corporation (BB/Positive) and
AZZ Inc. (BB/Stable). Commercial Metals is Alcoa's closest peer in
terms of EBITDA and margin.
Fitch-rated aluminum peers include China Hongqiao Group Limited
(BB+/Stable), and Aluminum Corporation of China Ltd. (Chalco;
A-/Negative). Hongqiao benefits from its larger size, higher
vertical integration and EBITDA margins above 18%. Hongqiao has a
less-sophisticated product range and less operational and
end-market diversity than Alcoa but it maintains a higher EBITDA
margin due to the scale and efficiency of its core aluminum
smelting business. Fitch expects Hongqiao and Alcoa to have similar
EBITDA net leverage on average.
Chalco is rated using a top-down approach based on the credit
profile of parent Aluminum Corporation of China (Chinalco), which
owns 32% of the company. Fitch's internal assessment of Chinalco's
credit profile is based on the agency's Government-Related Entities
Rating Criteria and is derived from China's rating, reflecting its
strategic importance.
Key Assumptions
- Fitch aluminum price assumptions published Dec. 6, 2024 of (LME
spot) of $2,400 in 2025, and $2,300/t thereafter;
- Shipments in line with guidance;
- EBITDA margins average about 15%;
- Capex at the $700 million per year level;
- The Ma'aden transaction closes in 2025;
- Dividends at the current rate.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA Leverage expected to be above 3.0x on a sustained basis;
- EBITDA margins sustained below 10%.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Visibility into the future of the San Ciprian operations;
- EBITDA margins expected to be sustained above 15%, indicating
higher value-added production and/or more disciplined markets;
- EBITDA leverage expected to be sustained below 2.0x.
Liquidity and Debt Structure
As of Dec. 31, 2024, cash on hand was $1.1 billion, an undrawn
$1.25 billion secured revolver expiring June 27, 2027, and an
undrawn $250 million secured Japanese Yen revolver expiring April
25, 2025. The facilities have a maximum debt/capitalization of 0.6x
and a minimum interest coverage ratio of 4.0x (EBITDA/cash interest
expense) in 2025 and thereafter. Fitch expects Alcoa to generate
positive FCF on average in its rating case.
Issuer Profile
Alumina Pty Ltd. is a proprietary company registered in Victoria,
Australia, and a wholly owned subsidiary of Alcoa Corporation.
Date of Relevant Committee
27 February 2025
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery
----------- ------ --------
Alumina Pty Ltd LT IDR BB+ Publish
senior unsecured LT BB+ Publish RR4
APOLLO SERIES 2025-1: S&P Assigns BB (sf) Rating to Class E Notes
-----------------------------------------------------------------
S&P Global Ratings assigned its ratings to six classes of prime
residential mortgage-backed securities (RMBS) issued by Perpetual
Trustee Co. Ltd. as trustee for APOLLO Series 2025-1 Trust. APOLLO
Series 2025-1 Trust is a securitization of prime residential
mortgage loans originated by Norfina Ltd. (trading as Suncorp
Bank).
The ratings reflect the following factors.
S&P believes the credit risk of the underlying collateral
portfolio, including its view that the credit support is sufficient
to withstand the stresses it applies. The credit support for the
rated notes comprises note subordination and lenders' mortgage
insurance cover on 11.65% of the loan portfolio.
The various mechanisms to support liquidity within the transaction,
including a liquidity reserve to cover extraordinary expenses, an
excess revenue reserve funded by available spread, the principal
draw function, and a liquidity facility to be provided by Norfina
equal to 0.8% of the performing mortgage loan balance, are
sufficient under our stress assumptions to ensure timely payment of
interest.
A fixed-rate swap to be provided by Norfina is available to hedge
the mismatch between receipts from any fixed-rate mortgage loans
and the variable-rate notes.
Ratings Assigned
APOLLO Series 2025-1 Trust
Class A, A$1380.000 million: AAA (sf)
Class AB, A$60.000 million: AAA (sf)
Class B, A$25.500 million: AA (sf)
Class C, A$15.000 million: A (sf)
Class D, A$7.500 million: BBB (sf)
Class E, A$6.000 million: BB (sf)
Class F, A$6.000 million: Not rated
EX PRODUCTS: First Creditors' Meeting Set for March 12
------------------------------------------------------
A first meeting of the creditors in the proceedings of Ex Products
Pty Ltd will be held on March 12, 2025 at 10:00 a.m. at the offices
of Mackay Goodwin at Level 2, 68 St Georges Terrace in Perth and
via Teams.
Mathieu Tribut of Mackay Goodwin was appointed as administrator of
the company on Feb. 27, 2025.
FINNISH EARLY: First Creditors' Meeting Set for March 12
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Finnish
Early Childhood Education (Longwarry) Pty Ltd and Finnish Early
Childhood Education (Waurn Ponds) Pty Ltd will be held on March 12,
2025 at 10:00 a.m. virtually via Microsoft Teams.
Alan Walker, Glenn Livingstone and Nicholas Charlwood of WLP
Restructuring were appointed as administrators of the company on
Feb. 27, 2025.
HEALTHSCOPE: Di Pilla Closes in as Operator Fails to Pay Rent
-------------------------------------------------------------
The Australian Financial Review reports that David Di Pilla's HMC
Capital is closing in on Healthscope after Australia's
second-largest private hospital operator failed to pay rent due on
11 hospitals his interests own, as Labor seeks to stave off a voter
backlash about hospital closures ahead of an election.
According to the Financial Review, the rental breach means
Healthscope, owned by New York-based global asset manager
Brookfield, is exposed to a potential takeover bid from Mr. Di
Pilla, an investment banker known for his property deals and a key
role in last month's backdoor listing of Chemist Warehouse.
It also highlights growing pressure on the country's private
hospitals, which are struggling to make money due to soaring
inflation, nurses wages and a downturn in patient numbers since the
pandemic, the report says. Healthscope last month said it was
closing maternity wards in Hobart and Darwin.
According to the Financial Review, Labor will this week ask health
insurers to give hospitals more funding to prevent more closures as
it seeks to offset last week's cost-of-living blow from health
insurance premium hikes by being seen to be playing hard ball with
health funds.
The Financial Review says HealthCo Healthcare & Wellness REIT, an
investment vehicle part owned by Mr. Di Pilla's HMC Capital, told
the ASX on March 4 it had issued breach notices to Healthscope for
failing to pay all the rent due for March. Part payment had been
received.
This means Mr. Di Pilla's interests can now legally seek to replace
Healthscope as the hospital operator for the 11 properties it owns
because it has breached its rental obligations. HMC Capital said
last month it was talking to consortium partners about taking over
Healthscope.
"It's game on," said one source close to the situation but not
authorised to speak publicly, the Financial Review relays.
HealthCo Healthcare said on March 4 it was in active discussions
with alternative hospital operators, but did not provide names.
The Financial Review says Healthscope has not breached its rent
obligation to its other major landlord, Toronto-listed Northwest
Healthcare Properties Real Estate Investment Trust, which owns 12
of its hospitals. Sources close to the situation but not authorised
to speak publicly said Northwest had agreed to give Healthscope
some rent relief for March to give it more breathing space to
renegotiate $1.6 billion of debt with its lenders.
HMC Capital has not said if it wants to take over all of
Healthscope's 38 hospitals or who its consortium partners would be,
but March 4's announcement is seen as a precursor to a change of
ownership given Mr. Di Pilla's history at getting deals across the
line, the report relays. Mr. Di Pilla's objective is to keep the
hospitals running without staff changes or closures if he makes a
move.
With healthcare emerging as a key election issue, Labor wants to
avoid closures or disruptions to private hospitals, the report
notes
Health Minister Mark Butler said he was giving health funds three
months to increase payments to hospitals or face potential
regulatory action, a surprise move which is a blow to insurers such
as Medibank Private, NIB and Bupa but will be welcomed by hospitals
lobbying for a government bailout, relates the Financial Review.
Healthscope is a private healthcare provider with 38 hospitals
across Australia.
JERVOIS GLOBAL: Shareholders Sue to Stop 'Rushed' Bankruptcy
------------------------------------------------------------
The Australian Financial Review reports that two small shareholders
are suing collapsed cobalt miner Jervois Global in a Texas court in
a last-ditch bid to halt a bankruptcy that will erase hundreds of
millions of dollars of investor capital.
The Financial Review relates that the broke cobalt miner's
rescue-lender, Boston hedge fund Millstreet Capital, wants to
delist the one-time market darling from the Australian Securities
Exchange, a move that will leave shareholders empty-handed.
AustralianSuper has lost an estimated AUD100 million on its 23 per
cent holding in Jervois – its second dud deal in six months –
but is not part of the shareholder action, the report says.
Jervois was valued at AUD1.6 billion in early 2022 when prospects
for its cobalt pushed its shares to almost AUD1 due to booming
demand for batteries as part of the global energy transition. But a
China-driven market glut has driven down prices.
In US filings, the two investors - representing 0.74 per cent of
the company's shares - want the court to halt the Chapter 11
voluntary administration proposal "so that Jervois Global's
shareholders do not lose all of their equity in a rushed and opaque
process," the Financial Review relays.
The Financial Review says the investors, Kadoo and Binvid, also
claim Jervois shifted its location to southern Texas a fortnight
before it filed for bankruptcy to obtain voluntary administration
approval in a favourable jurisdiction.
"While this practice is arguably not technically prohibited …
allowing a debtors' manufactured venue choice to stand would be an
affront to the purpose of the bankruptcy statute and the integrity
of the bankruptcy system," the shareholders' court filing states,
notes the report. "The shareholders are the only party left holding
the bag."
Other investors, banding together as the Jervois Action group and
claiming to hold 6 per cent of Jervois' registry, are demanding the
company hold an emergency general meeting to discuss the bankruptcy
proposal, the report adds.
According to the Financial Review, Christopher Dale, an insolvency
lawyer acting for the group, said shareholders have been misled by
Jervois. He said: "For months, the Australian-based parent company
told shareholders that it was selling assets so that all will be
rescued, and then it blindsided those shareholders [with the US
bankruptcy filing].
"Two weeks before the date of filing in the US, Jervois Texas was
created. That seems to me to be questionable. It also makes it
extremely difficult for shareholders in Australia to participate
and object to that procedure in the US.
"What the company is proposing to do . . . is to enter into Chapter
11 proceedings in Texas designed to reorganise the company, and at
the end, the shareholders in Australia get absolutely nothing."
As part of the bankruptcy deal, Millstreet will recapitalise
Jervois with US$145 million (AUD233 million), in addition to the
roughly US$150 million that it has already invested, the report
notes.
Cobalt is vital to the manufacture of lithium-ion batteries used in
long-range electric vehicles and is on the US government's critical
minerals list. Jervois' assets include a nickel and cobalt refinery
in Brazil, a cobalt refinery in Finland, and a cobalt deposit in
the US.
Cobalt is typically extracted as a byproduct at mines that focus on
nickel or copper; this places mines that extract cobalt solely on
an economically unstable footing.
About Jervois Global
Jervois Global Limited (ASX: JRV) (TSX-V: JRV) (OTC: JRVMF) and its
affiliates are global suppliers of advanced manufactured cobalt
products, serving customers in the powder metallurgy, battery and
chemical industries. The Debtors' principal asset base is
comprised of an operating cobalt facility in Finland and
non-operating plants in both the United States and Brazil.
On January 28, 2025, Jervois Texas, LLC and seven affiliated
debtors, including Jervois Global Limited filed voluntary petitions
for relief under Chapter 11 of the United States Bankruptcy Code.
The Debtors' bankruptcy cases are seeking joint administration
under Case No. 25-90002 and are pending before the Honorable Judge
Christopher M. Lopez in the United States Bankruptcy Court for the
Southern District of Texas.
The Debtors tapped SIDLEY AUSTIN LLP as restructuring counsel,
MOELIS & COMPANY as investment banker, and FTI CONSULTING, INC., as
restructuring advisor. STRETTO, INC., is the claims agent.
MSJP INVESTMENTS: First Creditors' Meeting Set for March 13
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of MSJP
Investments Pty Ltd will be held on March 13, 2025 at 4:00 p.m. via
virtual facilities.
Manuel Hanna of Romanis Cant was appointed as administrator of the
company on Feb. 28, 2025.
NRY INVESTMENT: First Creditors' Meeting Set for March 14
---------------------------------------------------------
A first meeting of the creditors in the proceedings of NRY
Investment Pty Ltd will be held on March 14, 2025 at 10:00 a.m. via
virtual meeting by Zoom.
Scott Anthony Newton of Shaw Gidley was appointed as administrator
of the company on March 4, 2025.
ONESTEEL MANUFACTURING: Bleeding AUD1.5MM a Day Before Collapse
---------------------------------------------------------------
The Sydney Morning Herald reports that Whyalla steelworks was
losing AUD1.5 million a day before being put into voluntary
administration and owes creditors AUD1.34 billion, including AUD570
million to entities owned by British industrialist Sanjeev Gupta,
which administrators have flagged as a disputed claim.
The steelworks in South Australia was plunged into voluntary
administration two weeks ago owing employee entitlements of
AUD189.7 million, the SA state government AUD40.2 million, and
other secured creditors AUD281.5 million. Unsecured creditors are
owed AUD837 million, the administrators appointed to sort out the
mess, KordaMentha, said.
"There are a lot of people at this meeting who are owed a lot of
money, and that is not lost on us," administrator Sebastian Hams
told a creditors' meeting on March 3, the Herald relays.
According to the Herald, the steelwork's mounting debts have left
businesses and contractors reeling in Whyalla, an industrial town
of 22,000 people about 380 kilometres north of Adelaide, where it
employs about 1,500 people and another 2,500 contractors.
"One of the reasons this business is still here is because of the
goodwill and the human capital and the supplier capital that's been
put in place to keep this business running," the Herald quotes Mr.
Hams as saying.
Unions representing steelworkers said 619 of their members are owed
AUD85.6 million. Another 423 salaried employees are out of pocket
AUD62.5 million.
The Herald says the company's troubles prompted South Australia's
parliament to approve dramatic bipartisan legislation two weeks ago
that enabled the government to call in voluntary administrators.
The day after the steelworks went into administration, Prime
Minister Anthony Albanese and SA Premier Peter Malinauskas visited
Whyalla to jointly announce a AUD2.4 billion rescue package aimed
at upgrading the plant's furnace and saving thousands of jobs at
the site.
Mr. Gupta's debt-ridden GFG Alliance, which owns OneSteel
Manufacturing, the Whyalla steelworks company in administration,
has been teetering on the brink since its key funding partner,
Australian-founded Greensill Capital, collapsed in 2021, the Herald
notes.
Whyalla's blast furnace is proving unreliable. A shutdown that
ended in January this year cost the company millions.
A statement from OneSteel's directors, Sanjeev Gupta and Ian
Hunter, read out to creditors at the meeting, said that
"significant operational and financial challenges" at the steel
mill halted production last year, with output just 25 per cent of
normal capacity, the Herald relays.
The Herald relates that the directors said they had a plan to
arrest the slide in losses and break even by mid-year. "The program
was working. We were steadily ramping up production while revenue,
through additional steel sales, was continually increasing."
But the administrators said in the seven months to the end of
January this year, the company generated a loss before income tax
of AUD319 million. The plant was running low on stock, hadn't been
spending on maintenance or repairs, and a significant number of
assets were pledged to suppliers because of the cash shortage.
Suppliers, transport providers, contractors and stevedores are
owned significant sums and were being paid on an "as needs basis".
"It's really important to acknowledge that there's some agreements
in place here with various related parties that mean this business
is hardwired to make losses," Mr. Hams said.
Of the AUD570 million owed to Mr. Gupta's entities, AUD144 million
is claimed to be secured, mostly relating to alleged prepaid sales,
the administrators, as cited by the Herald, said. Mr. Gupta also
owns the steel manufacturer InfraBuild which operates electric arc
furnaces in NSW and Victoria and is unaffected by the
administration. His companies are intricately linked and often pay
each other for goods and services.
The SA government signed a funding and indemnity deed with
KordaMentha in February for a AUD100 million upfront payment to
keep the company trading and pay expenses. Another AUD400 million
is available for any liabilities incurred during the
administration.
About OneSteel Manufacturing
OneSteel Manufacturing Pty Limited manufactures steel products. The
Company offers a variety of products including steel pipes, valves,
and sheets.
On Feb. 19, 2025, KordaMentha partners Mark Mentha, Sebastian Hams,
Michael Korda and Lara Wiggins were appointed voluntary
administrators of OneSteel Manufacturing Pty Ltd, the owner and
operator of the Whyalla steelworks and the iron ore mining
operations in the Middlebank Range (together, 'Whyalla Steelworks
and Mining') in South Australia.
The appointment was made by the South Australian Government.
ONESTEEL MANUFACTURING: GFG Alliance Remains Largest Creditor
-------------------------------------------------------------
Reuters reports that commodities tycoon Sanjeev Gupta's GFG
Alliance said in a statement on March 3 it remained the largest
creditor in Australia's Whyalla Steelworks at AUD536 million
(US$333.23 million).
South Australia's state premier put Whyalla into administration for
unpaid bills on February 19 and said he wants to help develop lower
carbon steel production in the state, Reuters relates. GFG said at
the time it was seeking advice on its options.
Over the last 12 months, the privately held conglomerate's steel
unit Infrabuild has offered customer pre-payments to Whyalla, while
the steelworks also recieved working capital loans from Tahmoor
Coal, GFG said in a statement.
A capital raising for the Tahmoor mine is still going ahead, a
spokeswoman separately told Reuters.
About OneSteel Manufacturing
OneSteel Manufacturing Pty Limited manufactures steel products. The
Company offers a variety of products including steel pipes, valves,
and sheets.
On Feb. 19, 2025, KordaMentha partners Mark Mentha, Sebastian Hams,
Michael Korda and Lara Wiggins were appointed voluntary
administrators of OneSteel Manufacturing Pty Ltd, the owner and
operator of the Whyalla steelworks and the iron ore mining
operations in the Middlebank Range (together, 'Whyalla Steelworks
and Mining') in South Australia.
The appointment was made by the South Australian Government.
STAR ENTERTAINMENT: Set to Run Out of Cash Before The Weekend
-------------------------------------------------------------
ABC News reports that Star Entertainment has barely enough cash to
last until March 7 and could be under administration as early as
March 5.
Insiders, who spoke on condition of anonymity, have told the ABC
that Star's directors have become increasingly nervous about
keeping the ailing gaming group afloat in the absence of any debt
refinancing or recapitalisation of the company.
They have refused to sign off on the accounts, which has put the
group in breach of its financial reporting obligations, preventing
it from resuming trade on the Australian Securities Exchange.
The ABC says insolvency group FTI has been briefed to assume
management control of the company. But if a sale of the assets has
proved problematic, an administration could be just as complex.
The NSW government owns the property upon which the flagship Sydney
casino, adjoining hotel and theatre are built, thereby giving it
security over those assets.
But most of the bank debt within the group is secured over the
newly built Brisbane casino and its adjoining Queen's Wharf
development.
If directors do opt to call in FTI as administrator, the banking
syndicate could apply to have a separate administrator or even a
receiver appointed to run the Queensland asset sales, the ABC
states.
Another complication is that, in his desperate bid to stitch up a
rescue package, recently appointed chief executive Steve McCann has
run the kitty bare.
That could make an administration, which ordinarily would cost in
the tens of millions of dollars, a tough grind with no fees
available until after the business or its assets had been sold.
The ABC has been told that Mr. McCann has refused to throw in the
towel.
He is still pursuing a deal with at least one party that would
refinance the company's loans.
Two private equity firms remain in the mix, the ABC notes. American
outfit Oaktree Capital offered a AUD650 million refinancing package
- essentially taking the banks out of the mix at a discount - a
fortnight ago.
A local but as yet unnamed private equity group also has expressed
an interest, the ABC relates.
The ABC says refinancing the debt would be the least painful option
for Star as this would not require regulatory approval or the
strict probity checks required of an equity investor, which could
take months.
US casino operator Bally's made overtures and last month reportedly
sent a delegation to Australia to pursue a deal.
But even if they signed this week, approval would not be
forthcoming until at least May, a prospect that has sent Mr. McCann
in pursuit of bridging finance.
It is more likely that all those circling, including Star's two
Chinese partners in Queen's Wharf and Bally's in Sydney, are now
waiting to pick up the assets under an administrator run auction,
the ABC relates.
About Star Entertainment
The Star Entertainment Group Limited (ASX:SGR) --
https://www.starentertainmentgroup.com.au/ -- is an Australia-based
company that provides gaming, entertainment and hospitality
services. The Company operates The Star Sydney (Sydney), The Star
Gold Coast (Gold Coast) and Treasury Brisbane (Brisbane). The
Company operates through three segments: Sydney, Gold Coast and
Brisbane. Sydney segment consists of The Star Sydney's casino
operations, including hotels, restaurants, bars and other
entertainment facilities. Gold Coast segment consists of The Star
Gold Coast's casino operations, including hotels, theatre,
restaurants, bars and other entertainment facilities. Brisbane
segment includes Treasury's casino operations, including hotel,
restaurants and bars. The Company also manages the Gold Coast
Convention and Exhibition Centre on behalf of the Queensland
Government. The Company also owns Broadbeach Island on which the
Gold Coast casino is located.
The Star Entertainment Group posted three consecutive annual net
losses of AUD198.6 million, AUD2.43 billion and AUD1.68 billion for
the years ended June 30, 2022, 2023, and 2024, respectively.
As reported in the the Troubled Company Reporter-Asia Pacific on
Jan. 21, 2025, Star Entertainment has warned that it faces
"material uncertainty" over its ability to stay afloat unless it
finds a solution to its worsening financial woes.
In a quarterly update to investors on Jan. 20, ASX-listed Star said
its revenue had fallen 15 per cent in the December quarter, citing
ongoing weakness in its operating performance. It pointed to a
"challenging" consumer environment, the impact of carded play in
NSW, and expenses caused by a series of regulatory and compliance
problems.
According to The Sydney Morning Herald, the Star reiterated that it
had AUD78 million left in cash - after previously indicating
earlier in the month that it is burning through about AUD35 million
a month - which prompted Morningstar's analyst to warn the company
may not survive until its results in late February.
As it fights for survival, Star said it was continuing discussions
to attempt to deal with the crunch on its finances, but there was
no guarantee it would be able to reach a deal to resolve its
situation, the Herald relayed. It acknowledged the uncertainty over
its ability to continue operating if the negotiations were
unsuccessful.
SWANSHORE PTY: First Creditors' Meeting Set for March 13
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Swanshore
Pty Ltd will be held on March 13, 2025 at 11:00 a.m. via virtually
by video conference.
Shaun Matthews and Sam Kaso of Cor Cordis were appointed as
administrators of the company on Feb. 28, 2025.
TAURUS 2024-1PP TRUST: Moody's Ups Rating on Class F Notes to Ba3
-----------------------------------------------------------------
Moody's Ratings has upgraded the ratings on eight classes of notes
issued from two Taurus Trust transactions.
The affected ratings are as follows:
Issuer: Taurus 2023-1 Trust
Class C Notes, Upgraded to Aa1 (sf); previously on Jul 16, 2024
Upgraded to Aa2 (sf)
Class D Notes, Upgraded to Aa3 (sf); previously on Jul 16, 2024
Upgraded to A1 (sf)
Class E Notes, Upgraded to A2 (sf); previously on Jul 16, 2024
Upgraded to Baa1 (sf)
Class F Notes, Upgraded to Baa1 (sf); previously on Jul 16, 2024
Upgraded to Ba1 (sf)
Issuer: Taurus 2024-1PP Trust
Class B Notes, Upgraded to Aa1 (sf); previously on May 9, 2024
Definitive Rating Assigned Aa2 (sf)
Class C Notes, Upgraded to Aa3 (sf); previously on May 9, 2024
Definitive Rating Assigned A2 (sf)
Class D Notes, Upgraded to A3 (sf); previously on May 9, 2024
Definitive Rating Assigned Baa1 (sf)
Class F Notes, Upgraded to Ba3 (sf); previously on May 9, 2024
Definitive Rating Assigned B1 (sf)
A comprehensive review of all credit ratings for the transactions
has been conducted during a rating committee.
RATINGS RATIONALE
The upgrades for Taurus 2023-1 Trust and 2024-1PP Trust were
prompted by an increase in credit enhancement available to the
affected notes and good performance of the collateral pool to
date.
No action was taken on the remaining rated classes in the deals as
credit enhancements remain commensurate with the current ratings
for the respective notes.
Taurus 2023-1 Trust
Following the February 2025 payment date, credit enhancement
available for the Class C, Class D, Class E, and Class F Notes has
increased to 15.5%, 12.0%, 8.8% and 7.5% respectively, from 13.6%,
10.1%, 6.8% and 5.4% at the time of the last rating action in July
2024.
The transaction satisfied the step-down conditions and principal
collections have been distributed amongst all rated classes of
notes on a pro-rata basis since the February 2024 payment date.
Current outstanding notes (excluding Class A1-X Notes) as a
percentage of the closing notes balance is 44.0%.
As of end-January 2025, 1.2% of the outstanding pool was 30-plus
day delinquent and 0.2% was 90-plus day delinquent. The deal has
incurred 0.6% of gross losses and 0.4% net losses to date, which
have been covered by excess spread.
Based on the observed performance to date and loan attributes,
Moody's have maintained Moody's expected default assumption of 2.8%
of the current balance (equivalent to 1.9% of the original balance)
and the Aaa portfolio credit enhancement assumption of 16.5% from
the time of the last rating action in July 2024.
Taurus 2024-1PP Trust
Following the February 2025 payment date, credit enhancement
available for the Class B, Class C, Class D, and Class F Notes has
increased to 11.6%, 8.7%, 5.6% and 1.2% respectively, from 8.0%,
6.0%, 3.9% and 0.8% at closing. Current outstanding notes
(excluding Class A1-X Notes) as a percentage of the closing notes
balance is 69.2%.
As of end-January 2025, 0.8% of the outstanding pool was 30-plus
day delinquent and 0.2% was 90-plus day delinquent. The deal has
incurred 0.2% of gross losses and 0.1% net losses to date, which
have been covered by excess spread.
Based on the observed performance to date and loan attributes,
Moody's have maintained Moody's expected default assumption of 2.8%
of the current balance (equivalent to 2.2% of the original balance)
and the Aaa portfolio credit enhancement assumption of 16.5% from
closing.
The transactions are cash securitizations of consumer and
commercial auto loan receivables extended to prime borrowers in
Australia by Taurus Finance Holdings Pty Limited (unrated).
The principal methodology used in these ratings was "Moody's Global
Approach to Rating Auto Loan- and Lease-Backed ABS" published in
August 2024.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that could lead to an upgrade of the ratings include (1)
performance of the underlying collateral that is better than
Moody's expectations, and (2) an increase in the notes' available
credit enhancement.
Factors that could lead to a downgrade of the ratings include (1)
performance of the underlying collateral that is worse than Moody's
expectations, (2) a decrease in the notes' available credit
enhancement, and (3) a deterioration in the credit quality of the
transaction counterparties.
=========
C H I N A
=========
LONGFOR GROUP: S&P Downgrades ICR to 'BB', Outlook Negative
-----------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Longfor Group Holdings Ltd. to 'BB' from 'BB+'. At the same time,
S&P lowered to 'BB-' from 'BB' the long-term issue rating on the
company's senior unsecured notes.
The negative outlook on Longfor reflects heightened risk of a
further decline in the company's contracted sales, hence worsening
leverage over the next 12 months amid an industry downturn.
S&P said, "We lowered the rating to reflect Longfor's increasing
leverage amid weakening property development business. We expect
the company's contracted sales to remain under pressure in
2025-2026 due to further depletion of saleable resources. In our
view, Longfor's priority to clear inventory units will continue to
exert pressure on its property development business' profit margin.
We expect the gross profit margin of Longfor's recognized property
development to be suppressed at 5%-6% in the same period, compared
with 11% in 2023 and 18% in 2022. We forecast revenue in the
property development segment will decline 14% for 2024 and 19% for
2025. While we believe the company will be able to reduce adjusted
debt of about Chinese renminbi (RMB) 10 billion each year in
2025-2026 using its growing rental and service income, weakness in
property development will partially offset this. Accordingly, we
expect Longfor's debt-to-EBITDA ratio to remain elevated at about
8x in 2024-2025, compared to 6.4x by the end of 2023."
Downside remains for the developer's contracted sales. S&P
forecasts Longfor's total contracted sales will decline a further
13% in 2025 to RMB89 billion. This is based on estimated saleable
resources valued at more than RMB160 billion for 2025. Longfor's
contracted sales declined 36% year on year in January 2025. This
compares with a 3.2% decline for China's top-100 developers,
according to China Real Estate Information Corp.
Given its rising leverage and shrinking property development
business, S&P has changed its holistic view of the assessment of
comparable rating analysis for Longfor to neutral from positive.
That said, Longfor has a solid record of disciplined cash flow
management. S&P said, "We estimate the company will be able to
generate higher operating cash flow in 2025 compared with an
estimated RMB5 billion-RMB7 billion in 2024. Despite expecting cash
inflow from contracted sales to decline by RMB14 billion in 2025,
we forecast growth in nonproperty development business such as
rental and property service income, a decline in construction
capital expenditure, and lower land spending will outweigh such a
decline, providing some liquidity buffer."
Maintaining solid performance in its retail property portfolio will
be essential to protect liquidity and funding access. S&P said, "We
believe Longfor will continue using its commercial mall portfolio
to secure asset-pledged loans for refinancing needs. In our view,
Longfor will have to keep up the solid operating performance of its
rental asset portfolio to ensure asset quality and debt servicing
capabilities. We estimate Longfor's rental income to interest
coverage ratio was 1.6x by 2024."
S&P expects Longfor to continue using its investment properties
portfolio to obtain commercial property loans in 2025. S&P
estimates the company has capacity to borrow an additional RMB20
billion of commercial property loans through increasing
loan-to-value of existing loans and pledging of new shopping malls
from 2025 onward.
As such, Longfor's adequate liquidity and well-managed debt capital
structure mitigate near-term risks. S&P estimates the company about
RMB25 billion in accessible cash (excluding cash from escrow
accounts) as of Dec. 31, 2024. Longfor has RMB7 billion in onshore
bond maturities and RMB8.5 billion equivalent in offshore bank
loans due for the remainder of 2025. With additional funding from
commercial property loans, S&P believes near-term risk in debt
repayment and refinancing remains manageable.
S&P said, "The negative outlook on Longfor reflects our view that
the company's contracted sales could weaken further over the next
12 months amid a prolonged market downturn. Longfor's leverage
would worsen and its liquidity buffer could narrow in such a
scenario.
"We could lower the rating on Longfor if the company's sales
decline more than our base case, such that operating cash flow and
liquidity turn significantly weaker than we expect, or if its
profit margin drops well below our forecast. EBITDA interest
coverage falling below 3x without signs of improvement could also
trigger a downgrade.
"We may revise the outlook to stable if Longfor's sales and profit
margin stabilize and rental income matches our expectations. At the
same time, the company should maintain adequate liquidity through
satisfactory management of cash inflow and raising of new financing
through pledging of its mall portfolio."
=================
H O N G K O N G
=================
NEW WORLD: Debt Cut Plans Lift Shares but Analysts Remain Cautious
------------------------------------------------------------------
Reuters reports that New World Development's shares and bonds
rallied on March 3 after the major Hong Kong developer said it
would increase cash flow and cut debt, but analysts said a more
concrete deleveraging plan is needed.
Its shares closed up 11.2% to HK$5.36, the highest since December
24. New World's market value has shrunk to about $1.7 billion from
$14 billion in mid-2019.
After reporting an interim net loss of HK$6.63 billion ($852.63
million) on Feb. 28, the company said it plans active property
sales and diminishing capital expenditure, and reiterated it was
not discussing a holistic debt restructuring plan, Reuters
relates.
With net gearing rising above 88%, New World has some of the
highest debt ratios in the sector, and the financial markets are
worried any deepening of its debt problems could trigger a crisis
reminiscent of the one in mainland China that started in 2021 and
led to scores of company defaults, according to Reuters.
"The interim loss was better than expected," said Alvin Cheung,
associate director of Prudential Brokerage, referring the profit
warning by the developer a week ago of a net loss of up to HK$6.8
billion, Reuters relates. "But the share price in the long run will
depend on how the firm will cut debt."
Despite the firm's previous asset disposal and refinancing efforts,
New World's net gearing still rose by up to four percentage points
in the six months that ended in December.
According to Reuters, J.P. Morgan said in a research report that
the value of assets pledged for bank loans has risen by HK$8.5
billion to HK$97 billion, accounting for 36% of its total property
book value, but it could still raise HK$93 million in loans by
pledging all unsecured assets.
Reuters relates that the brokerage also noted the company did not
assure the market it would rule out a rights issuance to raise
funds as it did in previous earnings conferences.
New World's perpetual bonds also firmed on March 3, though still
trading deep in distressed levels, with most of them bid at 31
cents to 47 cents on the dollar, according to data by Duration
Finance, adds Reuters.
New World Development Company Limited -- https://www.nwd.com.hk/ --
an investment holding company, operates in the property development
and investment business in Hong Kong and Mainland China. Its
property portfolio includes residential, retail, office, and
industrial properties. The company is also involved in the loyalty
program, fashion retailing and trading, and land development
businesses; and development and operation of sports park. In
addition, it operates club houses, golf and tennis academies, and
shopping malls; constructs and operates Skycity complex; and
operates department stores.
PHYSICAL FITNESS: High Court Enters Wind-Up Order of Unit
---------------------------------------------------------
The Standard reports that the High Court on Feb. 19 mandated the
winding up of Physical Health Centre (TST) Limited, a subsidiary of
the now-defunct gym chain Physical, following a liquidation
petition filed by Link Asset Management Limited, a property
management company.
The Standard says the order was issued after the subsidiary's
representative failed to attend the hearing.
According to the Standard, Master Maurice Lam Chak-ming delivered
the ruling based on the tenancy agreement, but details surrounding
the case remain undisclosed, as the liquidation petition documents
are currently not available for public viewing.
Since Physical's closure in September of last year, its branches in
Shatin Citylink Plaza and Kowloon Bay Telford Plaza have faced
claims from landlords totaling over HK$7 million in unpaid fees,
which include rent, interest, and management charges, the Standard
says.
Also, the Mandatory Provident Fund Schemes Authority is pursuing
over HK$3.37 million from Physical, citing three months of unpaid
pension fund contributions and related fees for about 740
employees.
As reported in the Troubled Company Reporter-Asia Pacific in late
January 2025, Hong Kong gym chain Physical Fitness has been ordered
to wind up after a local court ruled that the company was unable to
repay its debt, including more than HK$600 million owed by one
branch.
High Court judge Linda Chan on Jan. 27 ordered the gym chain's
parent company, Physical Beauty & Fitness Holdings Limited, and its
subsidiary, Physical Health Centre Hong Kong Limited, to liquidate,
local media reported.
=========
I N D I A
=========
ABHISHEK PROPBUILD: CARE Reaffirms D Rating on INR129.30cr LT Loan
------------------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
Abhishek Propbuild Private Limited (ABP), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 129.30 CARE D Reaffirmed
Rationale and key rating drivers
The ratings assigned to the Bank facilities of ABP continues to
factor in continuing ongoing delays in the debt servicing in the
rated facilities and classification of the account as NPA with the
lender. Post classification of NPA, the account was transferred to
an ARC (Asset Reconstruction Company) and as informed by the ARC,
there are ongoing delays in debt servicing.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Continuous timely servicing of the term loan with no delays for
period of more than 3 months and improvement in liquidity profile.
Negative factors: Not Applicable
Analytical approach: Standalone
Outlook: Not Applicable
Detailed description of key rating drivers:
Key weaknesses
* Ongoing delays in debt servicing: Company had defaulted in
servicing the debt obligations and the account was classified as
NPA by the lender post which the account was transferred to an ARC
(Asset Reconstruction Company). As informed by the ARC there are
ongoing delays in debt servicing.
Liquidity: Poor
Liquidity position of the company remained poor considering high
interest burden on the company and inability to repay it on timely
manner.
ABP, part of Mantri group, is operating a retail mall viz. 'Mantri
Square Mall (MSM)' in Malleswaram, Bengaluru with leasable area of
867,636 sft and 12 MW of windmill assets in Davangere district of
Karnataka. The power generated from windmills is largely utilized
for captive consumption with balance power sold out to third
parties in open market.
AHAN ADD-CHEM: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Ahan
Add-Chem Private Limited (AACPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.78 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated February 29,
2024, placed the rating(s) of AAPL under the 'issuer
non-cooperating' category as AAPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
AAPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated January 14, 2025,
January 24, 2025 and February 3, 2025 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Vadodara (Gujarat) based Ahan Add Chem Private Limited was
incorporated in 2010 by Mr. Rakesh Saraiya, Mr Kamlesh Shah, and
Mrs. Malini Sanghvi. The company was incorporated to undertake
manufacturing of organic chemicals (intermediate chemicals) which
are used in Pharmaceuticals, Chemical and Agrochemical industries.
The company had commenced its commercial operation from May 2018
onwards. AAPL is operating from its sole manufacturing unit located
at Padra, Dist. Vadodara, Gujarat having installed capacity of
plant is 828 MT per annum for manufacturing of organic chemicals.
AIMS OXYGEN: CARE Lowers Rating on INR10cr LT Loan to B-
--------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
AIMS Oxygen Private Limited (AOPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Downgraded from CARE B; Stable
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 5,
2024, placed the rating(s) of AOPL under the 'issuer
non-cooperating' category as AOPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
AOPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated November 20, 2024,
November 30, 2024, December 10, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of AOPL have been
revised on account of non-availability of requisite information.
Analytical approach: Standalone
Outlook: Stable
Baroda (Gujarat) based AIMS Oxygen Private Limited (AOPL) was
incorporated in January 1986 as a private limited company by
Mr.Alerk Patel, Mr. Anish Patel and Mr Sanjay Kumar Mistry. AOPL
has commenced its operations from October 2017 and is engaged into
manufacturing of industrial and medical gases situated in
Ahmedabad, Surat, Panelav and Rajkot. Company's promoters have 62
years of business experience in this Industry. It started with
small separation plant and has grown to become a multi-branch
filling and distribution entity in the state of Gujarat. It is
manufacturer, supplier and wholesaler of Dissolved Acetylene Gas,
Oxygen, Medical Oxygen, Argon, Nitrogen, Nitrous Oxide, Carbon
Dioxide, Hydrogen, and a Mixture of Gases. Company is also in
trading of various chemicals for Food and Beverages, Fragrances,
Personal Care, paint, ink and coatings and also trades allied
equipments such as liquid cylinders, medical and industrial
cylinders, Oxygen generator, cylinder valves and so on. Apart from
this it also provides cylinders services which include cryogenic
supply systems, associated engineering, construction, installation,
training and maintenance. As on March 31, 2022, AOPL had total
installed capacity of 5830 cylinders per day.
ALLIANCE INFRA: CRISIL Keeps B+ Debt Rating in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Alliance
Infrastructure Projects Private Limited (AIPPL) continues to be
'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Non Convertible 25 CRISIL B+/Stable (Issuer Not
Debentures LT Cooperating)
CRISIL Ratings has been consistently following up with AIPPL for
obtaining information through letter and email dated January 8,
2025 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AIPPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AIPPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on Non convertible
debentures of AIPPL continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
Set up in 2004, AIPPL is the flagship company of the Alliance
group, which is promoted by Mr. Manoj Sai Namburu and Bommireddy.
The group develops premium villas, integrated townships,
residential.
APG SHIMLA: CARE Keeps D Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of APG Shimla
University (ASU) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 46.81 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated February 21,
2024, placed the rating(s) of ASU under the 'issuer
non-cooperating' category as ASU had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
ASU continues to be non-cooperative despite repeated requests for
submission of information through emails dated January 6, 2025,
January 16, 2025 and January 26, 2025 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
APG Shimla University (ASU) is an educational trust formed in
November 2004 by Mr Pramod Goyal and his brother Mr Rajesh Goyal
with an objective to provide education services. The campus is
located in Shimla, spread over an area of 88 acres with all modern
facilities and latest available technology. ASU is providing
post-graduation, graduation and diploma courses like engineering,
management, hotel management, architecture, journalism, law, arts,
fashion designing and mass communication. ASU has started its first
academic session in September 2012. ASU has four group concerns.
BTM EXPORTS: CARE Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of BTM Exports
Limited (BEL) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 40.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated February 23,
2024, placed the rating(s) of BEL under the 'issuer
non-cooperating' category as BEL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
BEL continues to be non-cooperative despite repeated requests for
submission of information through emails dated January 8, 2025,
January 18, 2025 and January 28, 2025 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
BTM was initially incorporated as BTM Exports Private Limited on
November 24, 2004 and was later converted to public limited company
on August 18, 2008. The company is promoted by Tekriwal brothers
with Mr Sanjay Tekriwal being its chairman and managing director.
Initially, the company was into trading of Vanaspati, edible oils
and fabrics etc, but the same was discontinued by the company in
2011 and it started a new line of business which involves trading
of Basmati Rice and Iron ore fines.
CHHABEELA ENERGY: CRISIL Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Chhabeela
Energy Foods Private Limited (CEPL; part of the JP Sortex group)
continues to be 'CRISIL B+/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 35 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Long Term Loan 36 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term 4 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
Warehouse Receipts 25 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with CEPL for
obtaining information through letter and email dated January 8,
2025 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of CEPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on CEPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
CEPL continues to be 'CRISIL B+/Stable Issuer not cooperating'.
CEPL, established in 2009 by Mr. Raman Garg, commenced operations
in February 2014; fiscal 2015 was its first full year of
operations. The company mills and sorts basmati as well non-basmati
rice, which it sells in the domestic and export markets. It is
based in Ferozepur, Punjab.
CHOPRA HOTEL: CRISIL Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Chopra Hotel &
Resorts (CHR) continues to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 11.1 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with CHR for
obtaining information through letter and email dated January 8,
2025 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of CHR, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on CHR
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
CHR continues to be 'CRISIL D Issuer not cooperating'.
CHR, a partnership firm set up in 2013, has recently established a
44-room three star hotel in Jalandhar (Punjab) for which it has a
marketing and management tie up with Ramada Encore (a brand under
Wyndham Hotel Chain). The hotel commenced operations in January
2017. Mr. Kamal Chopra, his two sons, Mr. Umesh Chopra and Mr.
Ravish Chopra, and nephew, Mr. Gaurav Chopra are the promoters.
ESHAN YARNS: CARE Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Eshan Yarns
Private Limited (EYPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated February 19,
2024, placed the rating(s) of EYPL under the 'issuer
non-cooperating' category as EYPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
EYPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated January 4, 2025,
January 14, 2025 and January 24, 2025 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Eshan Yarns Private Limited (EYPL) is promoted by Mr. Sanjeev
Makkar and Mrs. Shweta Makkar with the operations of the company
starting in April-2017 only. The company was earlier engaged in the
trading of yarns & knitted fabrics till March, 2019. However, in
April 2019, the company had changed its nature of operations to
manufacturing of polyester fabrics.
FIVE CORE: CARE Keeps D Debt Ratings in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Five Core
Electronics Limited (FCEL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 1.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 44.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated January 12,
2024, placed the rating(s) of FCEL under the 'issuer
non-cooperating' category as FCEL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
FCEL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated November 27, 2024,
December 7, 2024, December 17, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Five Core Electronics Limited (FCEL) (ISIN: INE574Z01013) was
incorporated on April 11, 2002 by Mr. Amarjit Singh Kalra and his
wife, Ms. Surinder Kaur Kalra. The company is involved in the
manufacturing and assembling of public address (PA) systems and
components, including loud speakers, amplifiers, microphones,
woofers, and related electronic and electrical equipment. The
company commenced operations in April, 2002 and its manufacturing
facility is located in Bhiwadi based, Rajasthan. FCEL belongs to
the 5-core group, based in New Delhi. The 5-core group was
established in 1983 and apart from FCEL, the group has six other
companies namely, Indian Acoustics Private Limited, 5 Core
Acoustics Private Limited, Visual & Acoustics Corporation LLP, EMS
& Exports, Happy Acoustics Private Limited and Digi Export Venture
Private Limited which are all involved in the same line of
business.
Status of non-cooperation with previous CRA: CRISIL has continued
the rating assigned to the bank facilities of FCEL into Issuer Not
Cooperating category vide press release dated February 29, 2024 on
account of its inability to carry out a review in the absence of
requisite information.
INTERLINK FOODS: CRISIL Moves B Debt Rating from Not Cooperating
----------------------------------------------------------------
Due to inadequate information and in line with the Securities and
Exchange Board of India guidelines, CRISIL Ratings had migrated its
rating on the long-term bank facilities of Interlink Foods Pvt Ltd
(IFPL) to 'CRISIL B/Stable; Issuer not cooperating'. However, the
management has subsequently started sharing requisite information
for carrying out a comprehensive review of the rating.
Consequently, CRISIL Ratings has migrated its rating on the
long-term bank facilities of IFPL to 'CRISIL B/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 10 CRISIL B/Stable (Migrated from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Bank Guarantee 21 CRISIL B/Stable (Migrated from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Cash Credit 9 CRISIL B/Stable (Migrated from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Cash Credit 6 CRISIL B/Stable (Migrated from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Cash Credit 10 CRISIL B/Stable (Migrated from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Proposed Long Term 0.5 CRISIL B/Stable (Migrated from
Bank Loan Facility 'CRISIL B/Stable ISSUER NOT
COOPERATING')
Working Capital 3.5 CRISIL B/Stable (Migrated from
Term Loan 'CRISIL B/Stable ISSUER NOT
COOPERATING')
The rating continues to reflect the company's large working capital
requirement, negative operating profitability and weak financial
risk profile. These weaknesses are partially offset by the
expertise of the promoters and established relationship with
customers.
Analytical Approach
CRISIL Ratings has revised its analytical approach and now
considers the business and financial risk profiles of IFPL on a
standalone basis. Earlier, CRISIL Ratings had factored in the
support received from the parent "Devesh Foods and Agro Products
Pvt Ltd, DFAPL". The revision is based on the revised stance of the
management that both entities are now managed independently.
Key Rating Drivers & Detailed Description
Weaknesses
* Large working capital requirement: The working capital cycle is
likely to remain stretched amid business growth and will be closely
monitored. Gross current assets (GCAs) have been 190-210 days for
the past three fiscals and were 209 days as on March 31, 2024,
driven by receivables of 130-140 days; GCAs are expected at 200-220
days over the medium term due to high debtors and growing business.
Customers are given credit period of 90 days in schemes such as
Integrated Child Development Services (ICDS) and Public
Distribution System (PDS). But receivables from Uttar Pradesh
government for ICDS scheme is yet to be received amounting to INR24
crores as on March 31, 2024. Although out of this, INR10-12 crores
have been realized till date but full recovery remains monitorable.
Dependence on bank lines of INR25 crore has increased, with 90-93%
utilisation every month. High utilisation of the cash credit limit
indicates stretched liquidity. Working capital intensity may
moderate over the medium term due to late realisation of
receivables from the Uttar Pradesh government amounting INR24
crore, of which INR10-12 crore has been received; however, timely
payment from counterparties will remain a key monitorable.
* Negative operating profitability: The company has been incurring
losses at EBITDA level of INR12-13 crores annually till fiscal
2023, and INR4 crores losses in fiscal 2024, with company expecting
losses to reduce further to INR0.4 crores till September 2024. The
PAT losses were ranging INR11-17 crores in these 3 fiscals through
2024. This has largely been because of subdued revenue and no price
revision by Jharkhand government. But, the company from fiscal 2025
has started to cater to ICDS schemes of Punjab and Haryana
government, which are currently profitable and the projection for
Fiscal 2025 expect minimal profits. The government has not revised
the prices of its products since the past 3-4 years. Any increase
in input cost has to be absorbed by the company until the next
price revision. This exposes the operating margin to fluctuations
in raw material prices. Steady growth in the operating margin
remains a key rating sensitivity factor.
* Weak financial risk profile: The financial risk profile is marked
by moderate networth which has been reducing over the years to
INR85 crores as expected in Fiscal 2025 (INR86 crores in Fiscal
2024, and INR128 crores in Fiscal 2022) due to depletion of
reserves. High operating losses due to high raw material costs has
led to erosion in networth and subdued debt protection metrics.
Although the capital structure has been moderate with TOLANW ratio
expected at 1-1.05 times in fiscal 2025, (0.96 times in previous
fiscal), debt protection metrics may continue to be weak owing to
inadequate operating profitability, as indicated by interest
coverage ratio expected at 1-1.5 times in fiscal 2025 and improving
to more than 2 times over the medium term (negative ~0.79 times for
fiscal 2024); and net cash accrual to adjusted debt ratio expected
at 0.03-0.05 time in fiscal 2025 and further improving over the
medium term.
Strength
* Expertise of the promoters and established relationship with
customers: An established track record since 2009 helps the company
receive a steady flow of repeat orders. Expertise of the
promoters, their strong understanding of market dynamics and
healthy relationships with suppliers and customers should continue
to support the business. IFPL manufactures and supplies weaning
food such as Dalia, and milky bars to government departments of
Uttar Pradesh, Jharkhand, Haryana and Punjab under the ICDS scheme.
Under the PDS scheme, the company caters to government departments
in Uttar Pradesh, Jharkhand, Haryana and Punjab, and supplies
fortified rice kernels. The company has also recently started to
operate via the ICDS scheme for Punjab and Haryana governments,
which are profitable as they do not have vegetable oil and WMP as
major component; rather they include more of whole grains and milk.
The new tenders were awarded in fiscal 2025, for the next 3-4
years. With no price revision done in the Jharkhand ICDS scheme,
profitability margins remain negative leading to negative cash
accrual. However, the profitable schemes of Haryana and Punjab may
aid profitability which remains a key rating sensitivity factor.
Liquidity: Poor
Liquidity should remain supported by the ample surplus available in
cash accrual and bank lines. Bank limit utilisation was 77.63% on
average for the 13 months through December 2024. Cash accrual is
expected at INR2-3 crore per annum in Fiscal 2025 due to profitable
schemes of Punjab and Haryana government, against term debt
obligation of INR1-2 crore over the medium term. Liquidity is
supported Current ratio stood healthy at 4.68 times on March 31,
2024 and unsecured loans infusion. The promoters are likely to
extend timely, need-based funds (equity and unsecured loans) to aid
operations.
Outlook: Stable
IFPL will continue to benefit from its established customer
relationship and healthy business risk profile.
Rating sensitivity factors
Upward factors
* Sustained improvement in working capital cycle over the medium
term, with reduction in GCA days and low reliance on bank lines
* Steady revenue growth while sustaining the operating margin above
2.5%, leading to higher-than-expected cash accrual
Downward factors
* Reduction in revenue leading or operating margins below 1%
leading to lower-than-expected net cash accruals.
* Sizeable stretch in the working capital cycle or unrelated
investment in group companies or in real estate leading to
deterioration financial risk or liquidity profile
IFPL, established in 2012, manufactures ready-to-eat energy foods
for supply to government departments of Uttar Pradesh and Jharkhand
under the ICDS programme. DFAPL holds 51.3% stake in IFPL. IFPL has
two manufacturing facilities, one in Ranchi and the other set up
recently in Bareilly, Uttar Pradesh, to meet a new order received
from the Uttar Pradesh government.
MANTRI DEVELOPERS: CARE Reaffirms D Rating on INR230cr LT Loan
--------------------------------------------------------------
CARE Ratings has reaffirmed the rating on bank facilities of Mantri
Developers Private Limited (MDPL) to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 230.00 CARE D; Reaffirmed
Facilities
Rationale and key rating drivers
The rating assigned to the bank facilities of MDPL factors in the
continuing ongoing delays in the debt servicing in the rated
facilities and the account consistently being classified under
SMA1/SMA2 category as confirmed by the lender.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Continuous timely servicing of the term loan with no delays for
period of more than 3 months and improvement in liquidity profile.
Negative factors: Not Applicable
Analytical approach: Standalone
Outlook: Not Applicable
Detailed description of key rating drivers:
Key weaknesses
* Ongoing delays in debt servicing: The audit report for FY24 has
reported that the company has defaulted in payment of interest and
principal and the loans have been classified as NPA as on
March 31, 2024. Further as per banker interaction, it is observed
that there are ongoing delays in debt servicing of the LRD loan
facility and the account is consistently under SMA1/SMA2 category.
Liquidity: Poor
The liquidity profile of the MDPL is expected to remain poor due to
slow project progress in its under-construction portfolio
associated with significantly high debt repayment obligations over
burden of debt for the group. The company is meeting the repayment
obligations with a lag of 1-2 months. Due to delay in ongoing
projects the company is facing issues in relation to returning the
customer advances which may pose material uncertainty in relation
to the going concern of the company.
Mantri developers Private limited (MDPL) was established in July
1999 and is the flagship company of Mantri Group. The group is
engaged into residential and commercial real-estate- development
and hospitality sector. The Group has developed around 21.44 msf of
residential projects and 5.23 msf of commercial property majorly in
Bengaluru, Karnataka. MDPL also manages the commercial project in
Pune "Business @ Mantri" with leasable area of 4.0 lsf.
MGM INFRA: CARE Keeps D Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of MGM Infra
Development Solutions Private Limited (MGM) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.69 CARE D; Issuer not cooperating;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 31,
2024, placed the rating(s) of MIDSPL under the 'issuer
non-cooperating' category as MIDSPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. MIDSPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated
December 16, 2024, December 26, 2024 and January 5, 2025 among
others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
MGM, incorporated in 2009, is a private limited company being
managed by Mr Gurpreet Singh and Mr Manpreet Singh. The company is
setting up a unit to manufacture concrete blocks, bricks, pavers
etc at Roopnagar, Punjab. The commercial operations commenced from
December, 2015 with substantial completion of project. The
commercial operations were expected to commence from May, 2015,
however, the same commenced from December, 2015 due to time
overrun.
MSR INDIA: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of MSR India
Limited (MSRIL) continue to be 'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10.1 CRISIL D (Issuer Not
Cooperating)
Cash Credit 20 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 0.4 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with MSRIL for
obtaining information through letter and email dated January 8,
2025 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MSRIL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MSRIL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
MSRIL continues to be 'CRISIL D Issuer not cooperating'.
MSRIL was incorporated in 2002. MSRIL is owned & managed by K.V.
Rajasekhar Reddy. MSRIL is engaged in manufacturing of copper
bottles, battery cell cases and consumer goods such as Pasta,
Vermicelli, Chakki Atta, battery cells. MSRIL market it under brand
name 'Today' under consumer Goods and 'Dr. Copper' under Copper
water bottles. MSRIL manufacturing facility is located in Hyderabad
(Telangana).
ORAVEL STAYS: S&P Assigns 'B' Long-Term ICR, Outlook Stable
-----------------------------------------------------------
S&P Global Ratings assigned its 'B' long-term issuer credit rating
to Oravel Stays Ltd. (OYO). The outlook is stable. At the same
time, S&P assigned its 'B' long-term issue rating to the US$830
million senior secured term loan B that OYO's wholly owned
subsidiaries Oravel Stays Singapore Pte. Ltd., OYO Hospitality
Netherlands B.V., and OYO Hotels Inc. (the borrowers) jointly
issued. The ratings are in line with the preliminary ratings S&P
assigned on Dec. 4, 2024, given the company has met the conditions
it expected.
OYO has fully repaid its previous term loan B of approximately
US$450 million with the proceeds from the new term loan B. The
company's capital structure now has a longer debt maturity profile
than before. Its liquidity position has also improved. OYO has also
created security interest on the collateral for the US$830 million
senior secured term loan B, in line with S&P's expectation.
OYO's small profit scale and operations in a fragmented and
competitive hospitality sector will weigh on its earnings
predictability over the next 12 months. The company turned
EBITDA-positive in fiscal 2023 (year ended March 31, 2023), on an
S&P Global Ratings adjusted basis, after years of losses. Adjusted
EBITDA remains thin, at Indian rupee (INR) 64 million in fiscal
2023 and INR8.1 billion in fiscal 2024. This reflects OYO's
susceptibility to operational volatility and vulnerability to
external factors.
In S&P's view, barriers to entry are lower in the economy segment
that OYO focuses on. This is because the segment relies on pricing,
rather than differentiated offerings, to secure a competitive
advantage. The latter approach provides greater competitive
protection, in our opinion.
OYO's good brand equity as well as recent acquisitions of
better-established businesses could improve its earnings profile.
Given the company's main earnings stream is revenue-sharing with
asset owners, its nascent turnaround to profitability reflects its
ability to add value to hospitality asset owners and accommodation
seekers.
S&P said, "We project OYO's adjusted EBITDA will rise by 20%-30% in
fiscal 2025 to reach about INR10 billion, and by a further 80%-100%
in fiscal 2026 to reach INR18 billion-INR20 billion. Other than
from organic improvement, we forecast INR5 billion-INR6 billion of
incremental EBITDA in fiscal 2026 from new businesses. The new
businesses comprise CheckMyGuest (CMG), a France-based property
management company that OYO acquired in September 2024, as well as
BRE/Everbright M6 Borrower LLC (G6), a U.S.-based franchisor of
economy and extended-stays that OYO acquired in December 2024. In
our view, OYO has the potential to extract more value from these
entities by, for instance, reallocating their cost base to India,
and introducing a revenue management system to boost their top
lines."
Assuming the successful integration of these new businesses and
OYO's organic growth, the company is likely to generate positive
operating cash flow in fiscal 2025. This is an improvement from
negative INR128 million in fiscal 2024 and negative INR4.7 billion
in fiscal 2023.
The presence of large amounts of compulsorily convertible
preference shares (CCPS) and compulsorily convertible cumulative
preference shares (CCCPS) in OYO's capital structure will keep its
leverage high. In S&P's base case, these instruments--which it adds
to its adjusted debt figures--will account for at least 70% of the
company's adjusted debt through fiscal 2027.
S&P expects OYO's debt-to-EBITDA ratio to ease over the next 24
months with rising EBITDA. Still, the ratio will remain high at
more than 10x in fiscal 2027, though it is down from 25.5x in
fiscal 2024.
OYO could address the potential maturity wall for the CCPS and
CCCPS through an IPO or by further extending the stipulated
deadline for the IPO. Failing both options, the company could face
significant refinancing risk. That said, OYO has a record of
extending the IPO deadline. Meanwhile, the payout of 0.01% a year
on the CCPS and CCCPS implies limited risk of an immediate cash
obligation for the company, in S&P's view. Additionally, such
distribution is only required when declared.
S&P said, "The stable outlook on the issuer credit rating reflects
our expectation that OYO will execute its business improvement and
growth strategies, including integration of newly acquired
businesses, to continue growing its EBITDA over the next 12-24
months. In addition, we expect operating cash flow to turn
decidedly positive in fiscal 2026.
"The outlook also incorporates our view that OYO will address its
large CCPS and CCCPS maturities in a timely manner.
"We may lower the rating if OYO is unable to improve its
operational performance or if the company faces significant
integration challenges with its newly acquired businesses. An
indication of this would be EBITDA interest coverage staying well
below 2x. We may also lower the rating if we see growing
refinancing risk associated with the CCPS and CCCPS.
"On the other hand, we view an upgrade as unlikely until there is a
permanent improvement in OYO's capital structure, with the CCPS and
CCCPS maturity addressed. Over the longer term, we could raise the
rating if OYO's operating performance is much better than we
expect. Increasing gross booking value, revenue, and margins that
indicate an improving market position and competitiveness could
lead to an upgrade.
"We equalize the rating on the US$830 million term loan B with our
issuer credit rating on OYO. This is because the loan is secured by
liens on substantially all the assets of, and the equity interests
issued by, the borrowers and the guarantor group--comprising OYO,
the borrowers, and their material subsidiaries (including G6 and
its subsidiaries)."
Ratings Score Snapshot
Issuer Credit Rating: B/Stable/--
Business risk: Weak
Country Risk Intermediate
Industry Risk Intermediate
Competitive position Weak
Financial risk: Highly leveraged
Cash flow/Leverage Highly leveraged
Anchor b
Modifiers:
Diversification/Portfolio effect Neutral (no impact)
Capital structure Negative (-1 notch)
Financial policy Neutral (no impact)
Liquidity Less than adequate (no impact)
Management and governance Moderately negative (no impact)
Comparable rating analysis Positive (+1 notch)
Stand-alone credit profile: b
OZONE INFRA: CRISIL Keeps B+ Debt Rating in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Ozone Infra
Con Private Limited (OICPL) continues to be 'CRISIL B+/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Non Convertible 78.0 CRISIL B+/Stable (Issuer Not
Debentures LT Cooperating)
CRISIL Ratings has been consistently following up with OICPL for
obtaining information through letter and email dated January 8,
2025 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of OICPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on OICPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating Non convertible
debentures of OICPL continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
OICPL incorporated in 2008 is involved in the development of plot
and apartment in Yalchanhalli, Hoskote taluka, Banglore. OICPL of
the Ozone group which is involved in the development of residential
projects, IT parks, commercial complexes, service apartments,
townships etc. Hoskote project is developed in two phases in which
OICPL will be developing the first phase of 13.70 acres of plot and
31.98 acres for residential apartments.
PELLET-ENERGY SYSTEMS: CARE Keeps D Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of
PelleT-Energy Systems Private Limited (PSPL) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 28.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated February 22,
2024, placed the rating(s) of PSPL under the 'issuer
non-cooperating' category as PSPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
PSPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated January 07, 2025,
January 17, 2025 and January 27, 2025 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Pellet-Energy Systems Private Limited (PSPL) currently being
managed by Mr. Bharat Sharma and Ms. Shruti Sharma was initially
incorporated as Luxury Woodplus Private Limited in 2010. The name
changed to its present status in October 2011. PES is engaged in
manufacturing of biomass pellets at its manufacturing unit located
in Roorkee, Uttarakhand.
PRITI GEMS: CARE Keeps D Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Priti Gems
Exports Private Limited (PGEPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 55.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated February 27,
2024, placed the rating(s) of PGEPL under the 'issuer
non-cooperating' category as PGEPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. PGEPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated
January 12, 2025, January 22, 2025 and February 1, 2025 among
others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Established in 1995, Priti Gems Exports Private Limited (PGEPL-
converted from partnership firm into private limited company in
2010), a group concern of K. Chandrakant & Co. International Pvt.
Ltd., is engaged in the manufacturing of cut & polished dark brown
diamonds ranging from 0.01 carat to 20 carats in round as well as
other shapes like Princess, Oval, Emerald, Marquise, Pears, Heart,
etc. The company has its own manufacturing set-up in Dahisar and
Surat.
Status of non-cooperation with previous CRA: Brickwork has
continued the rating assigned to the bank facilities of PGEPL under
Issuer Not Cooperating category vide press release dated November
26, 2024 on account of its inability to carry out a review in the
absence of the requisite information from the company.
R. M. AUTO: CARE Keeps C Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of R. M. Auto
Link Private Limited (RMALPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.50 CARE C; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 4,
2024, placed the rating(s) of RMALPL under the 'issuer
non-cooperating' category as RMALPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. RMALPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated
November 19, 2024, November 29, 2024 and December 9, 2024 among
others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
R. M. Auto Link Private Limited (RMPL, CIN: U34103MP2005PTC017555)
was incorporated in April 2005 and was promoted by Rajpal and
Moolchandani family. RMPL is engaged in two-wheeler (2W) automobile
dealership business as an authorized dealer of Honda Motors Cycle
and Scooter India Pvt. Ltd. (HMSI). RMPL has one showroom with 3S
facility (Sales, Services and Spare Parts), one service centre with
2S facility (Services and Spare parts) and one sales outlay in
Bhopal.
RAIGARH FOODS: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings of Raigarh Foods
& Hotel Business Private Limited (RFHBPL) in the 'Issuer Not
Cooperating' category. The ratings are denoted as "[ICRA]D; ISSUER
NOT COOPERATING/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 7.50 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long Term- 1.00 [ICRA]D; ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain under
'Issuer Not Cooperating'
Category
Short-term 6.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with RFHBPL, ICRA has been trying to seek information from the
entity so as to monitor its performance. Further, ICRA has been
sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Raigarh Foods & Hotel Business Private Limited (RFHBPL) was
incorporated as a private limited company in 1996 by Mr. Subhash
Agarwal based in Raigarh, Chhattisgarh. The company is primarily
engaged in the milling of raw and par-boiled rice.
RAJASTHAN TUBE: ICRA Keeps C Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings of Rajasthan
Tube Manufacturing Company Limited (RTL) in the 'Issuer Not
Cooperating' category. The ratings are denoted as "[ICRA]C; ISSUER
NOT COOPERATING/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 20.00 [ICRA]C; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short Term- 12.25 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Rajasthan Tube Manufacturing Company Limited, ICRA has been
trying to seek information from the entity so as to monitor its
performance. Further, ICRA has been sending repeated reminders to
the entity for payment of surveillance fee that became due. Despite
multiple requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
RTL was incorporated in 1985 and became a public limited company in
1995. The main products of the company include ERW (Electric
resistance welding) steel pipes, with size ranging from 15 mm to
250 mm. The company's manufacturing facility is located at Jaipur
(Rajasthan) and has an annual capacity of 45,000 Metric Tonnes Per
Annum (MTPA). The pipes manufactured by the company have varied
applications in water, gas and sewage pipes, structural purposes,
idlers/conveyors, water wells (casing pipes) etc.
RAVINDRA RICE: ICRA Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
ICRA has kept the Long-Term rating of Ravindra Rice & General Mills
(RRGM) in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 16.50 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating continues to remain under
Limits 'Issuer Not Cooperating'
category
As part of its process and in accordance with its rating agreement
with RRGM, ICRA has been trying to seek information from the entity
so as to monitor its performance Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Ravindra Rice & General Mills (RRGM) is a partnership firm promoted
by Mr. Ravindra and his family members. The firm is primarily
involved in milling of Basmati rice. It is also involved in
converting semi-processed rice into parboiled Basmati rice. RRGM's
milling unit is based out of Jalalabad district, Ferozpur in close
proximity to the local grain market.
SFPL CROP: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of SFPL Crop
Life Science Private Limited (SFPL) continue to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.88 CRISIL D (Issuer Not
Cooperating)
Cash Credit 6.62 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SFPL for
obtaining information through letter and email dated January 8,
2025 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SFPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SFPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
SFPL continues to be 'CRISIL D Issuer not cooperating'.
SFPL was incorporated in 1999 as Subhash Fertilizers Pvt Ltd and
was later renamed as SFPL. The company is a fully owned subsidiary
of KSPL, which produces and markets seeds for the commercial seed
market. SFPL manufactures nitrogen, phosphorus, and potassium mixed
fertilizers. It is the sole distributor of hybrid vegetable seeds
of group company Krishnadhan Vegetable Seeds India Pvt Ltd across
India.
SHEETAL AGRO: CARE Keeps D Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sheetal
Agro Food Park Private Limited (SAFPPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated February 22,
2024, placed the rating(s) of SAFPPL under the 'issuer
non-cooperating' category as SAFPPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. SAFPPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated
January 7, 2025, January 17, 2025 and January 27, 2025 among
others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Kanpur (U.P) based Sheetal Agro Food Park Private Limited was
incorporated in January, 2010 and is currently being managed by Mr.
Mehboob Alam and Mr. Masroor Alam. The company is engaged in
renting of its cold storage facility for potatoes to the local
farmers in Kanpur, Uttar Pradesh.
Status of non-cooperation with previous CRA: CRISIL has continued
the rating assigned to the bank facilities of SAFPPL under Issuer
Not Cooperating category vide press release dated October 21, 2024
on account of its inability to carry out a review in the absence of
the requisite information from the company.
SHIVA PARBOILED: CRISIL Keeps B+ Debt Rating in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Shiva
Parboiled Industries (SPI) continues to be 'CRISIL B+/Stable Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with SPI for
obtaining information through letter and email dated January 8,
2025 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SPI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SPI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
SPI continues to be 'CRISIL B+/Stable Issuer not cooperating'.
SPI was formed in 1991 as a partnership between Mr. M Ravindra and
Mr. G Nagendra, with each partner holding a 50% stake. The firm
processes non-basmati rice at its plant at Nalgonda (Telangana),
which has an hourly capacity of 16 metric tonnes.
SHUSHRUSHA CITIZENS: CRISIL Keeps B Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shushrusha
Citizens Co-Op. Hospital Ltd. (SCCH) continue to be 'CRISIL
B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating 43 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Fixed Deposits 15 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with SCCH for
obtaining information through letter and email dated January 8,
2025 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SCCH, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SCCH
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities and
fixed deposit of SCCH continues to be 'CRISIL B/Stable Issuer not
cooperating'.
SCCH is a co-operative society, set up in 1966 by the Late Dr V S
Ranadive. The society operates a multi-specialty hospital called,
'Shushrusha Hospital' in Dadar (Mumbai) and Vikhroli (Mumbai).
SLN RICE: ICRA Keeps B+ Debt Rating in Not Cooperating Category
---------------------------------------------------------------
ICRA has kept the Long-Term rating of SLN Rice Industries in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 7.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 1.00 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with SLN Rice Industries, ICRA has been trying to seek information
from the entity so as to monitor its performance. Further, ICRA has
been sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
SLN Rice Industries was incorporated in the year 2003 as a
partnership firm. The firm is engaged in the milling of paddy for
producing raw rice. The firm is promoted by Mr. K. Umesh Babu and
Mr. K.Natesh Babu and the rice mill is located at Tumkur,
Karnataka. The installed capacity of the plant is 5 tons per hour.
SUDERSHAN CASTING: CRISIL Keeps B Debt Rating in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Sudershan
Casting Private Limited (SCPL; part of the KNK group) continues to
be 'CRISIL B/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with SCPL for
obtaining information through letter and email dated January 8,
2025 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SCPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SCPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
SCPL continues to be 'CRISIL B/Stable Issuer not cooperating'.
The current promoters took over KNKC in 2010 and started
manufacturing TMT bars. It is a partnership firm, owned and managed
by Mr. Rajneesh Sharma, Mr. Ramesh Chander and Ms Vijay Kumari.
Manufacturing facility in Samba (Jammu) has installed capacity of
150 tonne bar per day.
In 2013, the management took over SCPL (set up in 1986) to backward
integrate for KNKC. SCPL manufactures mild steel ingots and
supplies only to KNKC.
VASU COCO: ICRA Keeps D Debt Rating in Not Cooperating Category
---------------------------------------------------------------
ICRA has kept the Long-Term rating of Vasu Coco Resorts Private
Limited in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 43.00 [ICRA]D; ISSUER NOT COOPERATING;
Term Loan Rating Continues to remain under
'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Vasu Coco Resorts Private Limited, ICRA has been trying to
seek information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Vasu Coco Resorts Private Limited owns the 60-room 5-star property
'Vasundhara Sarovar Premiere' hotel in Vayalar, Kerala; which is
managed by Sarovar Hotels and Resorts Private Limited. The property
offers a mix of rooms, which include regular rooms, suites,
heritage rooms and cottages, floating cottages and also two-house
boats. The property also has three F&B outlets, which includes a
multi cuisine restaurant, a sea food specialty restaurant and a
poolside cafe. The property also offers other services like bar,
spa/health centre and boating services.
VIYYAT POWER: ICRA Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings of Viyyat Power
Private Limited (VPPL) in the 'Issuer Not Cooperating' category.
The ratings are denoted as "[ICRA]B+(Stable); ISSUER NOT
COOPERATING/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 0.50 [ICRA]B+(Stable);ISSUER NOT
Fund Based- COOPERATING; Rating continues to
Cash Credit remain under 'Issuer Not
Cooperating' category
Long-term- 4.42 [ICRA]B+(Stable);ISSUER NOT
Fund Based- COOPERATING; Rating continues to
Term Loan remain under 'Issuer Not
Cooperating' category
Short-term- 0.15 [ICRA]A4; ISSUER NOT
Bank Guarantee COOPERATING; Rating continues to
remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with VPPL, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Viyyat Power Private Limited (VPPL) is engaged in hydropower
generation. The company operates a 4.5 MW hydro power plant (3X1.5
MW), at Ambazhachal, Kerala on build, own, operate and transfer
(BOOT) basis. The design energy of the plant is 15.8 million units
(MU). The plant is located in the Western Kallar River basin, a
tributary of Periyar River at Ambazhachal, Kerala. The Company
sells the entire power generated to KSEB through a long-term power
purchase agreement.
=====================
N E W Z E A L A N D
=====================
GREENFERN INDUSTRIES: Waterstone Insolvency Appointed as Receivers
------------------------------------------------------------------
Damien Grant and Adam Botterill of Waterstone Insolvency on Feb.
24, 2025, were appointed as receivers and managers of Greenfern
Industries Limited.
The receivers and managers may be reached at:
Damien Grant
Adam Botterill
Waterstone Insolvency
16 Piermark Drive
Rosedale
Auckland 0632
GURU NZ: McGrathNicol Appointed as Receivers
--------------------------------------------
Kare Johnstone and Andrew Grenfell of McGrathNicol on March 3,
2025, were appointed as receivers and managers of Guru NZ Limited
and Guru NZ Holdings Limited.
The receivers and managers may be reached at:
McGrathNicol
Level 17
41 Shortland Street
Auckland
HAMMED PROPERTIES: Creditors' Proofs of Debt Due on March 27
------------------------------------------------------------
Creditors of Hammed Properties Limited are required to file their
proofs of debt by March 27, 2025, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Feb. 18, 2025.
The company's liquidators are:
Adam Botterill
Damien Grant
Waterstone Insolvency
PO Box 352
Auckland 1140
HILL'S RETAILERS: Creditors' Proofs of Debt Due on April 11
-----------------------------------------------------------
Creditors of Hill's Retailers Limited are required to file their
proofs of debt by April 11, 2025, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Feb. 26, 2025.
The company's liquidators are:
Iain Bruce Shephard
Jessica Jane Kellow
BDO Wellington, Business Restructuring
Level 1, 50 Customhouse Quay
Wellington 6011
LEISURE SPAS: Falls Into Liquidation With NZD1.7 Million Shortfall
------------------------------------------------------------------
The Press reports that declining sales have sunk a family-owned
premium spa business in Christchurch amid "ongoing economic
challenges".
Leisure Spas was placed into voluntary liquidation on February 7,
seven years after it was incorporated under a different name.
It sold an assortment of spas and swim spas ranging from $8,000 to
NZD39,000 from a showroom on Blenheim Rd. Saunas, gazebos and spa
repairs were offered.
The Press relates that director Clay Baker previously said on
business networking site LinkedIn the family-owned business was
known for its "premium products", which used the latest
technology.
Key relationships he secured had generated more than NZD100,000 in
extra spa sales in 12 months, he wrote, while a new website had
grown online sales by 56%.
A recent spa buyer who spoke anonymously said Leisure Spas had not
been flexible on price last month. Coupled with a six to eight-week
delivery time, she felt "something didn't sit right", and went
elsewhere.
According to The Press, liquidator Brenton Hunt's first report said
Leisure Spas traded consistently until Covid "seriously impacted"
sales. Trading picked up afterwards but declined as the economy
slowed.
An automatic reply from the company email address said placing
Leisure Spas in liquidation was a "difficult decision", citing
"ongoing economic challenges".
A shortfall of NZD1.7 million was drafted, assuming NZD250,000 in
stock, NZD70,000 in three motor vehicles and NZD20,000 in shop
fittings were sold, The Press discloses.
Secured creditors including ASB Bank and four spa-related companies
claimed NZD1.67 million. Inland Revenue and staff each claimed
NZD20,000.
Mr. Hunt estimated 14 unsecured creditors would not see the
NZD300,000 they claimed.
MAX FORTUNA: Creditors' Proofs of Debt Due on March 27
------------------------------------------------------
Creditors of Max Fortuna 3 Limited are required to file their
proofs of debt by March 27, 2025, to be included in the company's
dividend distribution.
The High Court at Auckland appointed Adam Botterill and Damien
Grant of Waterstone Insolvency as liquidators of the company on
Feb. 21, 2025.
=================
S I N G A P O R E
=================
FY GROUP: Court to Hear Wind-Up Petition on March 14
----------------------------------------------------
A petition to wind up the operations of FY Group Pte. Ltd. will be
heard before the High Court of Singapore on March 14, 2025, at
10:00 a.m.
RHB Bank Berhad filed the petition against the company on Feb. 19,
2025.
The Petitioner's solicitors are:
Messrs. Harry Elias Partnership LLP
SGX Centre 2, #17-01
4 Shenton Way
Singapore 068807
GRIDLINE DESIGN: Court Enters Wind-Up Order
-------------------------------------------
The High Court of Singapore entered an order on Feb. 14, 2025, to
wind up the operations of Gridline Design Lab Pte. Ltd.
Maybank Singapore Limited filed the petition against the company.
The company's liquidator is:
Gary Loh Weng Fatt
BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
TWINCO HOLDING: Commences Wind-Up Proceedings
---------------------------------------------
Members of Twinco Holding Pte. Ltd. on Feb. 26, 2025, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidator is:
Dr. Knut Unger
Luther LLP
4 Battery Road
#25-01 Bank of China Building
049908 Singapore
VIKUDHA GLOBAL: Commences Wind-Up Proceedings
---------------------------------------------
Members of Vikudha Global Trade Pte. Ltd. on Feb. 20, 2025, passed
a resolution to voluntarily wind up the company's operations.
The company's liquidators are:
Paresh Tribhovan Jotangia
Ho May Kee
Amar Bipin Singh
Grant Thornton Singapore
c/o 8 Marina View
#40-04/05 Asia Square
Tower 1
Singapore 018960
YEAP TRANSPORT: Court Enters Wind-Up Order
------------------------------------------
The High Court of Singapore entered an order on Feb. 14, 2025, to
wind up the operations of Yeap Transport Pte. Ltd.
Dover Court International School (Pte.) Ltd. filed the petition
against the company.
The company's liquidators are:
Goh Wee Teck
Lin Yueh Hung
RSM SG Corporate Advisory
8 Wilkie Road
#03-08, Wilkie Edge
Singapore 228095
=====================
S O U T H K O R E A
=====================
HOMEPLUS CO: Enters Court-Led Rehabilitation Amid Credit Crunch
---------------------------------------------------------------
Yonhap News Agency reports that Homeplus Co., a discount store
chain in South Korea, said March 4 it has entered a court-led
rehabilitation process after its credit rating declined amid
liquidity worries.
The Seoul Bankruptcy Court approved the rehabilitation proceedings
for Homeplus after reviewing its application submitted earlier in
the day for the procedure, notes the report.
Last week, Korea Investors Service and Korea Ratings Inc. lowered
the rating of Homplus' corporate bonds to A3- from A3, citing the
lack of the company's efforts to improve its financial health,
Yonhap relates.
On March 4, the two ratings firms once again revised down the bond
rating from A3- to D as the launch of the rehabilitation procedure
prevents the company from paying debts until the procedure is
finalized, according to Yonhap.
"We have decided to file for the rehabilitation program as there
existed a possibility of a short-term liquidity crisis. This move
is part of our preemptive efforts to avoid a liquidity crisis," the
report quotes a Homeplus official as saying.
Yonhap relates that the official argued the company's improved
debt-to-equity ratio and increased sales on online and offline
stores were not reflected in the credit rating evaluation. The
court's approval for the rehabilitation process shows Homeplus'
fundamentals, including its business value and competitiveness,
remain unscathed, he said.
The current management will continue to handle key decisions as the
court didn't designate a court-appointed manager for the company,
the company said, notes the report.
Private equity firm MBK Partners, which owns Homeplus, said the
company is not facing liquidity issues but decided to file for
court-led rehabilitation proceedings as a preemptive measure.
"I know we've entered the procedure earlier than expected," Kim
Kwang-il, vice chairman of MBK Partners, told Yonhap over the
phone, adding that struggling Korean companies often make such
decisions only when they have no other options. "Managing a large
company like Homeplus requires certainty. We made this decision
after considering whether it was right to continue spending the
company's money in such an uncertain situation."
Homeplus currently operates 126 stores nationwide, down from 131 a
year earlier.
Its outlets are in normal operation across the country despite its
filing for the rehabilitation program, Yonhap says.
In the fiscal year that ended in February 2024, the company's
operating losses narrowed to KRW199.42 billion (US$137 million)
from KRW260.18 billion a year ago, Yonhap discloses.
Homplus has reported continued operating losses due to the lack of
competitiveness compared with its bigger rivals, such as Emart
Inc., the country's largest discount store chain, relates Yonhap.
In 2015, private equity fund MBK Partners acquired an entire 100
percent stake in Homeplus for KRW7.2 trillion, including KRW4.3
trillion in loans, from British retailer Tesco Plc.
Out of the 4.3 trillion-won loan, the company said it has paid back
about KRW4 trillion, Yonhap adds.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2025. All rights reserved. ISSN: 1520-9482.
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