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250709.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, July 9, 2025, Vol. 28, No. 136 Headlines A U S T R A L I A AG ACUMEN: First Creditors' Meeting Set for July 15 AUSTRALIAN PACIFIC: Dartbrook Coal Mine Enters Administration DARTBROOK OPERATIONS: First Creditors' Meeting Set for July 15 ETHICAL DAIRY: First Creditors' Meeting Set for July 11 LATITUDE AUSTRALIA: Fitch Puts 'BBsf' Final Rating on Class E Notes MME PL 2025-1: Fitch Assigns 'B(EXP)sf' Rating to Class F Notes REDZED TRUST 2022-3: Fitch Hikes Rating on Class F Notes to 'BB+sf' STAR ENTERTAINMENT: May Lose Right to Operate Queen's Wharf Casino SURFSTITCH PTY: Second Creditors' Meeting Set for July 14 WITTNER GROUP: Second Creditors' Meeting Set for July 11 C H I N A AIRNET TECH: Agrees to Sell Subsidiaries to AR iCapital for US$1 FTX: Chinese Customers in Limbo Over Local Crypto Crackdown H O N G K O N G CNT SECURITY: To Cease Operation Next Year, 2,000 Jobs at Risk I N D I A AISHWARYA AVANT: CARE Keeps D Debt Rating in Not Cooperating B.N. CHAVAN: CARE Keeps B- Debt Rating in Not Cooperating Category BIRD CONSULTANCY: Insolvency Resolution Process Case Summary BRAND NETWORKS: Voluntary Liquidation Process Case Summary ESSENTIAL LOGISTICS: Insolvency Resolution Process Case Summary GMR HYDERABAD: S&P Alters Outlook to Positive, Affirms 'BB' LT ICR GUINEA MOTORS: CRISIL Lowers Rating on LT/ST Ratings to D INDUSTRIAL HANDLING: CRISIL Keeps B+ Ratings in Not Cooperating JAY AMBE: CRISIL Reaffirms B+ Rating on INR6cr Cash Debt JGI METAL: CRISIL Reaffirms B Rating on INR37.5cr Term Loan JYOTI CAPSULES: Voluntary Liquidation Process Case Summary KANCHAN OIL: CARE Lowers Rating on INR27cr LT Loan to B KANSOCLOUD INDIA: Voluntary Liquidation Process Case Summary LABLAND BIOTECHS: Insolvency Resolution Process Case Summary LAKSHMI INFRA: CARE Cuts Rating INR450cr Loans to D LGW INDUSTRIES: CARE Moves B Debt Rating to Not Cooperating LUDHIANA TALWANDI: Insolvency Resolution Process Case Summary MAHAVIR GLOBAL: CRISIL Withdraws B Rating on INR4cr Export Loan METALOGIC DATA: Voluntary Liquidation Process Case Summary NEXRISE PUBLICATIONS: Liquidation Process Case Summary OCEAN MOTORS: CRISIL Lowers Rating on INR13cr Cash Loan to D ONKAR COTTON: CRISIL Keeps B Debt Rating in Not Cooperating OPTIONS LAWNS: CARE Keeps D Debt Rating in Not Cooperating QUARTZKRAFT LLP: CRISIL Hikes Rating on INR14.98cr LT Loan to B S S AGROZONE: CRISIL Lowers Rating on INR10.50cr Cash Loan to D S.M. PHARMACEUTICALS: Insolvency Resolution Process Case Summary SJ WORLDTRADE: CRISIL Assigns B Rating to INR11.95cr Debt SPECTRUM TOOL: CRISIL Lowers Long and Short Term Ratings to D SRUSTI AGRO: CARE Keeps C Debt Rating in Not Cooperating Category SWAMI SAMARTH: CARE Keeps C Debt Rating in Not Cooperating SWIKRITI RENEWABLES: Insolvency Resolution Process Case Summary VARUN JAL: CRISIL Lowers Rating on INR34.6cr Term Loan to D VASUGAN MEDICAL: CRISIL Lowers Rating on INR25.64cr Loan to B VINKEM LABS: Liquidation Process Case Summary VOLT-AGE INFRA: CARE Keeps D Debt Ratings in Not Cooperating I N D O N E S I A PILAR SINERGI: Gets USD7.15MM Loan From Jasa Marga J A P A N NISSAN MOTOR: S&P Puts 'BB' ICR to USD and EUR Sr. Unsec. Notes M A L A Y S I A SAPURA ENERGY: To Hold Critical EGM on July 30 N E W Z E A L A N D BUMBLEBEE TEA: Court to Hear Wind-Up Petition on July 14 BUTLERS CHOCOLATE: Stores Close as Company Goes Into Liquidation EAST IMPERIAL: Declared Insolvent; Unable to Pay Over NZD7 Million JK CONCRETE: Court to Hear Wind-Up Petition on July 14 L3 CTS: Creditors' Proofs of Debt Due on Aug. 22 LEDA GROUP: Creditors' Proofs of Debt Due on July 25 MERCK LIMITED: Creditors' Proofs of Debt Due on July 16 S I N G A P O R E ALLIANZ DIGITAL: Commences Wind-Up Proceedings AUREUS CONCEPT: Court to Hear Wind-Up Petition on July 11 BRAEBURN WHISKY: KordaMentha Appointed as Liquidators CASK 88: KordaMentha Appointed as Liquidators CDL HOSPITALITY: Fitch Affirms Then Withdraws 'BB+' Long-term IDR JETTY VENTURES: Creditors' Proofs of Debt Due on July 31 T H A I L A N D MUANGTHAI CAPITAL: S&P Rates USD-Denominated Sr. Unsec. Notes 'BB-' - - - - - ================= A U S T R A L I A ================= AG ACUMEN: First Creditors' Meeting Set for July 15 --------------------------------------------------- A first meeting of the creditors in the proceedings of AG Acumen No. 2 Pty Ltd will be held on July 15, 2025 at 10:30 a.m. at the offices of Worrells, at Suite 5B, 55 Kembla Street, in Wollongong, NSW, and via virtual meeting technology. Stephen John Hundy of Worrells was appointed as administrator of the company on July 3, 2025. AUSTRALIAN PACIFIC: Dartbrook Coal Mine Enters Administration ------------------------------------------------------------- ABC News reports that a troubled NSW coal mine has plunged into receivership and administration just months after it reopened following years of disuse. Dartbrook Mine, an underground thermal coal joint venture in the Hunter Valley, had sat empty since 2006 until it was revived at the end of last year. Its owner, ASX-listed Australian Pacific Coal, last month failed to meet its obligations for a AUD174 million loan to key backer Vitol, a Singapore-based commodities giant, according to the ABC. The ABC relates that Australian Pacific Coal has now called in administrators from Deloitte and requested an "immediate" trading suspension on the stock market. Vitol has since appointed receivers, insolvency firm FTI Consulting, to claw back its millions. According to the ABC, the mine had clocked up losses of AUD47 million and made less than AUD1 million in revenue in the last half of last year according to its half year report. The ABC understands the mine will continue to operate for now. Australian Pacific Coal declined to comment to the ABC. In a statement on the ASX, Australian Pacific Coal said its directors met on July 4 to "assess the financial uncertainty" of the situation. They said the voluntary suspension on the stock exchange will remain in place until July 4, or until they make another announcement, whichever comes first. According to the ABC, Australian Pacific Coal said last month after it defaulted on its loan that Vitol had "expressed its continued support and commitment towards the Dartbrook project". They added that Vitol had provided an additional AUD4.2-million since the loan default in a sign of its continued backing. The ABC relates that Ben Campbell, one of the receivers at FTI Consulting, said Vitol had appointed receivers to support the "long-term future" of the Dartbrook coal mine. "We intend to continue operations onsite and work with relevant stakeholders while an urgent assessment of options is undertaken," the ABC quotes Mr. Campbell as saying. Headquartered in Brisbane, Australia, Australian Pacific Coal Limited (ASX:AQC) -- http://www.aqcltd.com/site/content/-- acquires, explores for, and develops thermal and metallurgical coal prospects in Australia. It holds 100% interests in the Dartbrook coal project covering an area of approximately 3,268 hectares located in the coal region of the Hunter Valley, New South Wales; and the Matuan Downs bentonite project located in Queensland. DARTBROOK OPERATIONS: First Creditors' Meeting Set for July 15 -------------------------------------------------------------- A first meeting of the creditors in the proceedings of Dartbrook Operations Pty Ltd, Dartbrook Assets Pty Ltd, Dartbrook Services Pty Ltd and Dartbrook Commercial Pty Ltd, will be held on July 15, 2025 at 11:00 a.m. via MS Teams. Richard John Hughes and Timothy Joseph Heenan of Deloitte were appointed as administrators of the company on July 3, 2025. ETHICAL DAIRY: First Creditors' Meeting Set for July 11 ------------------------------------------------------- A first meeting of the creditors in the proceedings of Ethical Dairy Company Pty Ltd (trading as Ethical Beef Company and How Now Diary) will be held on July 11, 2025 at 10:30 a.m. at the offices of WA Insolvency Solutions, a division of Jirsch Sutherland, at Level 6, 109 St Georges Terrace, in Perth, WA, via virtual facilities. Jimmy Trpcevski and Greg Prout of WA Insolvency Solutions were appointed as administrators of the company on July 2, 2025. LATITUDE AUSTRALIA: Fitch Puts 'BBsf' Final Rating on Class E Notes ------------------------------------------------------------------- Fitch Ratings has assigned final ratings to Latitude Australia Credit Card Loan Note Trust as issuer of the series 2025-1 notes. The notes are backed by a pool of consumer receivables, principally credit card receivables, originated by Latitude Finance Australia. The master trust structure permits purchase of eligible receivables on a revolving basis, to be funded through occasional issuance of additional series of notes. The master trust programme features a linked-note issuance structure. The notes were issued by Perpetual Corporate Trust Limited as trustee for Latitude Australia Credit Card Master Trust. This is the eighth issuance from Latitude Australia Credit Card Master Trust. Entity/Debt Rating Prior ----------- ------ ----- Latitude Australia Credit Card Master Trust 2025-1 - Class A AU3FN0099206 LT AAAsf New Rating AAA(EXP)sf 2025-1 - Class B AU3FN0099214 LT AAsf New Rating AA(EXP)sf 2025-1 - Class C AU3FN0099222 LT Asf New Rating A(EXP)sf 2025-1 - Class D AU3FN0099230 LT BBBsf New Rating BBB(EXP)sf 2025-1 - Class E AU3FN0099248 LT BBsf New Rating BB(EXP)sf 2025-1 Originator VFN Subordination LT NRsf New Rating NR(EXP)sf KEY RATING DRIVERS Stable Receivables Performance: Portfolio performance is stable, with gross charge-offs averaging 5.0%, yield averaging 17.6% and a monthly payment rate (MPR) averaging 17.0% for the 12 months to end-March 2025. Yield and MPR exclude merchant service fees and recoveries. Fitch has retained a recovery base case of 20%, as Latitude has demonstrated a substantial, consistent and steady recovery history. Fitch has retained steady states of 5.25% for gross charge-offs, 11.5% for yield and 12.5% for MPR. The Stable Outlook on the note ratings is supported by Australia's continued economic growth and tight labour market. GDP growth was 1.3% for the year to March 2025, and unemployment was 4.1% in May 2025. Fitch forecasts GDP growth of 1.8% in 2025 and 2.1% in 2026, with unemployment at 4.3% and 4.2%, respectively. A summary of the steady states and rating stress applied in its cash flow modelling is shown below: Steady State: Gross charge-offs: 5.25% Recoveries: 20% MPR: 12.5% Gross yield: 11.5% Purchase rate: 100% Rating Stress: Ratings: AAAsf / AAsf / Asf / BBBsf / BBsf Charge-offs (increase): 4.50x / 3.75x / 3.00x / 2.25x / 1.75x Recoveries (% haircut): 60% / 48% / 36% / 27% / 18% MPR (% decrease): 40% / 35% / 30% / 25% / 15% Gross yield (% decrease): 35% / 30% / 25% / 20% / 15% Purchase rate (% decrease): 90% / 85% / 75% / 65% / 55% Originator and Servicer Risk Mitigated: Latitude is a publicly listed company with more than a decade of experience in managing large consumer receivable portfolios in Australia and New Zealand. Latitude is not rated by Fitch. Servicer risk is mitigated through back-up arrangements. Fitch undertook an operational review and found that the operations of the originator and servicer were comparable with other non-bank credit card providers. Added Flexibility: The structure employs an originator variable funding note (VFN) purchased and held by Latitude to add funding flexibility that is typical and necessary for credit card trusts. It provides credit enhancement to the rated notes, adds protection against dilution and is used to meet risk-retention requirements. A separate VFN provides funding flexibility for the trust. Mitigated Counterparty Risk: Latitude acts in several capacities, most prominently as originator, servicer and trust manager. The degree of reliance is mitigated by the transferability of operations, a nominated back-up servicer and a series-specific liquidity reserve. Mitigated Interest-Rate Risk: Interest-rate risk is mitigated by available credit enhancement. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Unanticipated increases in charge-offs or reductions in purchase rates or yield could produce loss levels higher than Fitch's base case and are likely to result in a decline in credit enhancement and remaining loss coverage levels available to the notes. Decreased credit enhancement may make certain note ratings susceptible to negative rating action, depending on the extent of coverage decline. Hence, Fitch conducts sensitivity analysis by stressing a transaction's steady-state assumptions. This section provides insight into the model-implied sensitivities the transaction faces when one assumption is modified, while holding others equal. The modelling process uses the modification of these variables to reflect asset performance in up and down environments. The results below should only be considered as one potential outcome, as the transaction is exposed to multiple dynamic risk factors. It should not be used as an indicator of possible future performance. Notes: Class A / B / C / D / E Rating: AAAsf / AAsf / Asf / BBBsf / BBsf Increase charge-off steady state by 25%: AAAsf / AA-sf / A-sf / BBB-sf / BBsf Increase charge-off steady state by 50%: AAAsf / A+sf / BBB+sf / BB+sf / BBsf Increase charge-off steady state by 75%: AAAsf / Asf / BBBsf / BBsf / BB-sf Reduce MPR steady state by 15%: AAAsf / AA-sf / A-sf / BBB-sf / BBsf Reduce MPR steady state by 25%: AAAsf / A+sf / BBB+sf / BB+sf / BBsf Reduce MPR steady state by 35%: AA+sf / Asf / BBBsf / BB+sf / BBsf Reduced purchase rate by 50%: AAAsf / AA-sf / A-sf / BBB-sf / BBsf Reduced purchase rate by 75%: AAAsf / AA-sf / A-sf / BBB-sf / BBsf Reduced purchase rate by 100%: AAAsf / A+sf / BBB+sf / BB+sf / BBsf Reduced yield steady state by 15%: AAAsf / AAsf / Asf / BBB-sf / BBsf Reduced yield steady state by 25%: AAAsf / AA-sf / A-sf / BBB-sf / BBsf Reduced yield steady state by 35%: AAAsf / AA-sf / A-sf / BB+sf / BB-sf Rating sensitivity to increased charge-off rate and reduced MPR: Increased charge-off rate by 25% and reduced MPR by 15%: AAAsf / Asf / BBB+sf / BB+sf / BBsf Increased charge-off rate by 50% and reduced MPR by 25%: AA+sf / BBB+sf / BBB-sf / BB-sf / B+sf Increased charge-off rate by 75% and reduced MPR by 35%: A+sf / BBBsf / BBsf / B+sf / Bsf Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Macroeconomic conditions, loan performance, credit losses and sale proceeds that are better than Fitch's baseline scenario or sufficient build-up of credit enhancement that would fully compensate for the credit losses and cash flow stresses commensurate with higher rating scenarios, all else being equal. Upgrade Sensitivities: Notes: Class A / B / C / D / E Rating: AAAsf / AAsf / Asf / BBBsf / BBsf Reduce charge-off steady state by 25%: AAAsf / AA+sf / AA-sf / A-sf / BBB+sf USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Prior to the series closing, Fitch sought to receive a third-party assessment conducted on the asset portfolio information, but none was made available to Fitch for this series. Overall, and together with any assumptions referred to above, Fitch's assessment of the asset pool information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The issuer has informed Fitch that not all relevant underlying information used in the analysis of the rated notes is public. 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. MME PL 2025-1: Fitch Assigns 'B(EXP)sf' Rating to Class F Notes --------------------------------------------------------------- Fitch Ratings has assigned expected ratings to MME PL 2025-1 Trust's pass-through floating-rate notes. The notes are backed by a pool of first-ranking Australian unsecured personal loans originated by MoneyMe Financial Group Pty Ltd. The notes will be issued by Perpetual Corporate Trust Limited as trustee for the trust. Entity/Debt Rating ----------- ------ MME PL 2025-1 Trust A LT AAA(EXP)sf Expected Rating B LT AA(EXP)sf Expected Rating C LT A(EXP)sf Expected Rating Commission note LT AAA(EXP)sf Expected Rating D LT BBB(EXP)sf Expected Rating E LT BB(EXP)sf Expected Rating F LT B(EXP)sf Expected Rating G1 LT NR(EXP)sf Expected Rating G2 LT NR(EXP)sf Expected Rating Transaction Summary The total collateral pool at the 30 June 2025 cut-off date was AUD200 million and consisted of 10,865 receivables with weighted-average (WA) seasoning of nine months, WA remaining maturity of 57 months and an average contract balance of AUD18,409. KEY RATING DRIVERS Stress Commensurate with Ratings: Fitch derived default base-case expectations for borrowers with Equifax scores of 700-799 and 800+. Its default assumptions (and 'AAAsf' default multiples) are 10.0% (4.00x) and 5.0% (5.25x), respectively, for each sub-pool, with a WA of 7.4% (4.44x). The recovery base case is 23.0%, with a 'AAAsf' recovery haircut of 60.0%, for both sub-pools. Portfolio performance is supported by Australia's continued growth and tight labour market. GDP growth was 1.3% for the year to March 2025 and unemployment was 4.1% in May 2025. Fitch forecasts GDP growth of 1.8% in 2025 and 2.1% in 2026, with unemployment at 4.3% and 4.2%, respectively. Excess Spread Limited by Commission Note Repayment: The transaction includes a commission note to fund the purchase-price component related to the unamortised commission paid to introducers for the origination of the receivables. The note will not be collateralised, and will amortise in line with an amortisation schedule. Its repayment limits the availability of excess spread to cover losses, as it ranks senior in the interest waterfall, above the class B to F notes. Structural Risks Addressed: Counterparty risk is mitigated by documented structural mechanisms that ensure remedial action takes place should the ratings of the transaction account bank, liquidity facility provider or swap provider fall below a certain level. The class A to F notes will receive principal repayments pro rata upon satisfaction of the step-down conditions. The percentage of credit enhancement provided by the G1 and G2 notes will increase as the A to F notes amortise. Fitch's cash flow analysis incorporates the transaction's structural features and tests the robustness of each note by stressing default and recovery rates, prepayments, interest-rate movements and default timing. All notes have passed their relevant rating stresses. Low Operational and Servicing Risk: All receivables were originated by MoneyMe, which demonstrated adequate capability as originator, underwriter and servicer. Servicer disruption risk is mitigated by standby servicing arrangements. The nominated standby servicer is Perpetual Corporate Trust Limited. Fitch undertook an operational review and found that the operations of the originator and servicer were comparable with those of other non-bank lenders. No Residual Value Risk: There is no residual value exposure in this transaction. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Transaction performance may be affected by changes in market conditions and the economic environment. Weakening asset performance is strongly correlated with increasing levels of delinquencies and defaults that could reduce credit enhancement available to the notes. Downgrade Sensitivities Unanticipated increases in the frequency of defaults and decreases in recoveries on defaulted receivables could produce loss levels higher than Fitch's base case, and are likely to result in a decline in credit enhancement and remaining loss-coverage levels available to the notes. Decreased credit enhancement may make certain note ratings susceptible to negative rating action, depending on the extent of the coverage decline. Hence, Fitch conducts sensitivity analysis by stressing a transaction's initial base-case assumptions; these include increasing WA defaults and decreasing the WA recovery rate. Downside Sensitivities Classes: Commission / A / B / C / D / E / F Expected Ratings: AAAsf / AAAsf / AAsf / Asf / BBBsf / BBsf / Bsf Increase default rates by 10%: AAAsf / AA+sf / AA-sf / A-sf / BBB-sf / BBsf / Less than B-sf Increase default rates by 25%: AAAsf / AAsf / A+sf / BBB+sf / BB+sf / BB-sf / Less than B-sf Increase default rates by 50%: AAAsf / A+sf / A-sf / BBB-sf / BBsf / B-sf / Less than B-sf Reduce recovery rates by 10%: AAAsf / AA+sf / AAsf / A-sf / BBBsf / BBsf / B-sf Reduce recovery rates by 25%: AAAsf / AA+sf / AAsf / A-sf / BBBsf / BBsf / B-sf Reduce recovery rates by 50%: AAAsf / AA+sf / AA-sf / A-sf / BBB-sf / BBsf / Less than B-sf Increase default rates by 10% and reduce recovery rates by 10%: AAAsf / AA+sf / AA-sf / A-sf / BBB-sf / BBsf / Less than B-sf Increase default rates by 25% and reduce recovery rates by 25%: AAAsf / AAsf / Asf / BBBsf / BB+sf / B+sf / Less than B-sf Increase default rates by 50% and reduce recovery rates by 50%: AAAsf / A+sf / BBB+sf / BB+sf / BBsf / Less than B-sf / Less than B-sf Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Economic conditions, loan performance and credit losses that are better than Fitch's baseline scenario or sufficient build-up of credit enhancement that would fully compensate for credit losses and cash flow stresses commensurate with higher rating scenarios, all else being equal. Upgrade Sensitivities The commission and class A notes are at the highest level on Fitch's scale and cannot be upgraded. Classes: B / C / D / E / F Expected Ratings: AAsf / Asf / BBBsf / BBsf / Bsf Reduce defaults by 10% and increase recoveries by 10%: AA+sf / A+sf / BBB+sf / BB+sf / B+sf USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY MoneyMe provided Fitch with a comprehensive set of data that includes a majority of data fields generally used in the agency's analysis of auto loan receivables. Prior to the transaction closing, Fitch reviewed a small, targeted sample of MoneyMe's origination files and found the file information to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio. Prior to the transaction closing, Fitch sought to receive a third-party assessment of the asset portfolio information, but none was made available. Overall, Fitch's assessment of the information relied upon for the agency's rating analysis, according to its applicable rating methodologies, indicates that it is adequately reliable. REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The issuer has informed Fitch that not all relevant underlying information used in the analysis of the rated notes is public. 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. REDZED TRUST 2022-3: Fitch Hikes Rating on Class F Notes to 'BB+sf' ------------------------------------------------------------------- Fitch Ratings has upgraded two note classes and affirmed twelve from RedZed Trust Series 2022-3 and RedZed Trust Series 2024-3. Fitch has also revised the Outlook on RedZed 2024-3 class B, C and D notes to Positive from Stable. The Outlook on the transactions' other note classes is Stable. The upgrade of the notes is due to the combination of the continued deleveraging of the portfolio and the transaction nearing the end of its pro rata period. The transactions are backed by a pool of first-ranking Australian conforming and non-conforming residential full- and low-documentation mortgage loans originated by RedZed Lending Solutions Pty Limited. The notes were issued by Perpetual Trustee Company Limited in its capacity as trustee. Entity/Debt Rating Prior ----------- ------ ----- RedZed Trust Series 2022-3 A-1 AU3FN0072773 LT AAAsf Affirmed AAAsf A-2 AU3FN0072781 LT AAAsf Affirmed AAAsf B AU3FN0072799 LT AA+sf Affirmed AA+sf C AU3FN0072807 LT A+sf Affirmed A+sf D AU3FN0072815 LT BBB+sf Affirmed BBB+sf E AU3FN0072823 LT BBB-sf Upgrade BBsf F AU3FN0072831 LT BB+sf Upgrade B+sf RedZed Trust Series 2024-3 A-1-L AU3FN0092532 LT AAAsf Affirmed AAAsf A-2 AU3FN0092540 LT AAAsf Affirmed AAAsf B AU3FN0092557 LT AAsf Affirmed AAsf C AU3FN0092565 LT Asf Affirmed Asf D AU3FN0092573 LT BBBsf Affirmed BBBsf E AU3FN0092581 LT BBsf Affirmed BBsf F AU3FN0092599 LT BB-sf Affirmed BB-sf KEY RATING DRIVERS Stable Asset Performance: The 30+ day arrears for RedZed 2022-3 and 2024-3 were 7.2% and 4.0%, respectively, as of end-May 2025, tracking above and below Fitch's 1Q25 non-conforming RMBS performance monitor of 5.32%. The 90+ day arrears for RedZed 2022-3 and 2024-3 were both 1.8% as of end-May 2025, tracking below Fitch's 1Q25 monitor of 2.40%. The bond factor for RedZed 2022-3 is 29.3%, which amplifies arrears on a percentage basis. Still, the amount in arrears as a dollar value has decreased since the previous review,as each loan now makes up a larger proportion of the pool than they would in a larger, more granular transaction. The 'AAAsf' weighted-average foreclosure frequency (WAFF) for RedZed 2022-3 was 18.4% as of end-April, driven by the foreclosure frequency floor applied to loans in arrears, WA unindexed current loan-to-value ratio (LVR) of 60.7%, self-employed borrowers comprising 94.7% of the pool, low documentation loans making up 85.7%, and, under Fitch's methodology, non-conforming and investment loans comprising 12.6% and 38.1%, respectively. The 'AAAsf' WA recovery rate (WARR) of 66.8% was driven by the portfolio's WA indexed scheduled LVR of 57.2%. So far, there has been one loss on RedZed 2022-3 of AUD94,345, which was reimbursed by excess spread. The 'AAAsf' WAFF for RedZed 2024-3 was 20.0% as of end-April, driven by the foreclosure frequency floor applied to loans in arrears, the WA unindexed current LVR of 65.9%, self-employed borrowers making up 95.2% of the pool, low documentation loans making up 91.3% and, under Fitch's methodology, non-conforming and investment loans comprising 17.3% and 38.3%, respectively. The 'AAAsf' WARR of 55.1% was driven by the portfolio's WA indexed scheduled LVR of 65.6%. Credit Enhancement Supports Ratings: The transactions have built up credit enhancement through sequential principal repayment since closing, which has offset elevated arrears, supporting the current ratings in the cash flow model. RedZed Trust Series 2024-3 is currently paying principal sequentially, building up credit enhancement, and will switch to pro rata when the principal step-down test is satisfied. Liquidity Risk Mitigated: Both transactions benefit from liquidity facilities sized at 1.5% of the invested note balance (excluding Class G), with floors of AUD750,000 for RedZed 2022-3 and AUD900,000 for RedZed 2024-3. These facilities are sufficient to mitigate Fitch's payment interruption risk. Additional structural features include retention and amortisation mechanisms that redirect excess income to repay the principal balances of the notes. The retention mechanism has been fully applied in both transactions, with the retention ledger balance currently at AUD500,000. Low Operational and Servicing Risk: RedZed was established in 2006 and is an experienced specialist lender for self-employed borrowers. Fitch undertook an operational review and found that the operations of the originator and servicer were comparable with market standards. Tight Labor Market Supports Outlook: Portfolio performance is supported by Australia's continued economic growth and a tight labor market. GDP growth was 1.3% year-on-year in March 2025, and unemployment stood at 4.1% in May 2025. Fitch expects GDP growth to rise to 1.8% in 2025 and 2.1% in 2026, with unemployment at 4.3% and 4.2%, respectively. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The transactions' performance may be affected by changes in market conditions and the economic environment. Weakening asset performance is strongly correlated with increasing levels of delinquencies and defaults that could reduce credit enhancement available to the notes. Downgrade Sensitivities: Unanticipated increases in the frequency of defaults and loss severity on defaulted receivables could produce loss levels higher than Fitch's base case and are likely to result in a decline in credit enhancement and remaining loss-coverage levels available to the notes. Decreased credit enhancement may make certain note ratings susceptible to negative rating action, depending on the extent of the coverage decline. Hence, Fitch conducts sensitivity analysis by stressing a transaction's initial base-case assumptions. RedZed Trust Series 2022-3 Notes: A1 / A2 / B / C / D / E / F Current rating: AAAsf / AAAsf / AA+sf / A+sf / BBB+sf / BBB-sf / BB+sf Increase defaults by 15%: AAAsf / AAAsf / AA+sf / A+sf / BBB+sf / BB+sf / BB+sf Increase defaults by 30%: AAAsf / AAAsf / AA+sf / A+sf / BBBsf / BB+sf / BBsf Reduce recoveries by 15%: AAAsf / AAAsf / AA+sf / A+sf / BBB+sf / BBB-sf / BB+sf Reduce recoveries by 30%: AAAsf / AAAsf / AA+sf / A+sf / BBB+sf / BBB-sf / BB+sf Increase defaults by 15% and reduce recoveries by 15%: AAAsf / AAAsf / AA+sf / A+sf / BBB+sf / BB+sf / BB+sf Increase defaults by 30% and reduce recoveries by 30%: AAAsf / AAAsf / AA+sf / A+sf / BBBsf / BB+sf / BBsf RedZed Trust Series 2024-3 Notes: A-1-L / A-2 / B / C / D / E / F Current rating: AAAsf / AAAsf / AAsf / Asf / BBBsf / BBsf / BB-sf Increase defaults by 15%: AAAsf / AAAsf / AA-sf / A-sf / BBB-sf / BB-sf / Bsf Increase defaults by 30%: AAAsf / AAAsf / A+sf / BBB+sf / BB+sf / B+sf / Bsf Reduce recoveries by 15%: AAAsf / AAAsf / AAsf / Asf / BBBsf / BB-sf / B+sf Reduce recoveries by 30%: AAAsf / AAAsf / AAsf / Asf / BBBsf / BB-sf / B+sf Increase defaults by 15% and reduce recoveries by 15%: AAAsf / AAAsf / AA-sf / A-sf / BBB-sf / BB-sf / Bsf Increase defaults by 30% and reduce recoveries by 30%: AAAsf / AAAsf / A+sf / BBB+sf / BB+sf / B+sf / Bsf Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade could result from macroeconomic conditions, loan performance and credit losses that are better than Fitch's baseline scenario or sufficient build-up of credit enhancement that would fully compensate for credit losses and cash flow stresses commensurate with higher rating scenarios, all else being equal. Upgrade sensitivities are not relevant for the 'AAAsf' rated notes, as they are the highest level on Fitch's scale and cannot be upgraded. Prepayments to the loans with the largest obligor exposure, which result in the notes passing Fitch's concentration test, could lead to positive rating action for the notes, all else being equal. RedZed Trust Series 2022-3 Notes: B / C / D / E / F Current rating: AA+sf / A+sf / BBB+sf / BBB-sf / BB+sf Reduce defaults by 15% and increase recoveries by 15%: AAAsf / AA+sf / A-sf / BBBsf / BBBsf RedZed Trust Series 2024-3 Notes: B / C / D / E / F Current rating: AAsf / Asf / BBBsf / BBsf / BB-sf Reduce defaults by 15% and increase recoveries by 15%: AA+sf / A+sf / BBB+sf / BB+sf / BB-sf USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pools and the transactions. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information as part of its ongoing monitoring. Prior to the transactions closing, Fitch sought to receive a third-party assessment conducted on the asset portfolio information, but none was made available to Fitch for these transactions. As part of its ongoing monitoring, Fitch conducted a review of a small, targeted sample of the originator's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis, according to its applicable rating methodologies indicates, that it is adequately reliable. ESG Considerations 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. STAR ENTERTAINMENT: May Lose Right to Operate Queen's Wharf Casino ------------------------------------------------------------------ The Australian Financial Review reports that Star Entertainment will lose the right to run its newly opened Queen's Wharf casino in Brisbane next year with the company's two business partners already holding discussions with rivals including ASX-listed SkyCity Entertainment and American hospitality giant Delaware North. The Financial Review relates that Chow Tai Fook Enterprises and Far East Consortium, which each own 25 per cent of the sprawling hotel, casino and entertainment complex, are pushing to have a new operator in place by early next year, according to people briefed on the matter but not authorised to comment publicly. Star has been in dispute with the two companies, which are also shareholders in the casino operator, over the management of Queen's Wharf, according to the Financial Review. Chow Tai Fook and Far East have been considering walking away from an agreement to buy Star out of its stake in the precinct. The Financial Review says the investors have been discussing handing the rights to alternative operators including SkyCity, which runs casinos in New Zealand and Adelaide, and Delaware North, which operates the Mindil Beach Casino Resort in Darwin. They could also do a deal with Crown Resorts, which has runs Australia's two biggest casinos and a smaller casino in Sydney. In a statement to the Hong Kong Stock Exchange, Far East said its issues were related to removing Star from the Queen's Wharf business entirely, the Financial Review relays. "Discussions with The Star over the past week have been focused on matters principally relating to the orderly transition . . . to ensure certainty for the JV Partners and other relevant stakeholders in facilitating the exit of The Star from the equity and management of the QWB Project," a statement said. Star first announced plans to sell its 50 per cent stake to Chow Tai Fook and Far East in March. The short-form agreement said Star would manage the casino for a fixed monthly fee of AUD5 million until at least March 31. It also gave Star control of two towers in Broadbeach Island on the Gold Coast and a AUD53 million financial lifeline to prevent the company from collapsing. A final deal was to be signed in April, but the three business partners have been at odds over key components of the transaction, primarily Star's ability to continue operating the Brisbane casino. Chow Tai Fook and Far East last week threatened to walk away from the agreement, but Star told investors on July 7 that they had agreed to negotiate until the end of the month, the Financial Review says. However, Star will be expected to pay AUD36.5 million to the partners if it is unable to complete the transaction. Queen's Wharf is the newest of Star's three precincts - the others are in Sydney and on the Gold Coast - and was developed with the backing of its Hong Kong shareholders. It opened in August and is approved for 2500 poker machines. It had 1500 operating when the casino first opened. According to the report, Star said on July 7 that the Hong Kong investors had agreed to a new "set of principles" and claimed that elements of the final deal would be noticeably different from the original agreement. Losing the right to run the Brisbane casino will not only hurt the group financially, but leave Star with little to show for the hundreds of millions of dollars it funnelled into the complex, the Financial Review says. In its half-year results, Star said Queen's Wharf generated AUD88.8 million in revenue made up of its operator fees and a cost recovery agreement. Gaming revenue was not disclosed. 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. SURFSTITCH PTY: Second Creditors' Meeting Set for July 14 --------------------------------------------------------- A second meeting of creditors in the proceedings of Surfstitch Pty Limited (trading as 'Surfstitch', 'Mohobu' and 'Chosen Labels') has been set for July 14, 2025, at 2:30 p.m. at the offices of Mackay Goodwin, Suite 12.02, Level 12, 20 Bridge Street, in Sydney, NSW. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by July 11, 2025 at 4:00 p.m. Edwin Narayan and Domenic Calabretta of Mackay Goodwin were appointed as administrators of the company on June 6, 2025. WITTNER GROUP: Second Creditors' Meeting Set for July 11 -------------------------------------------------------- A second meeting of creditors in the proceedings of Wittner Group Holdings Pty Ltd, Wittner Retail Australia Pty Ltd, and Wittner Retail New Zealand Pty Ltd has been set for July 11, 2025, at 11:00 a.m. at the offices of Deloitte, at 477 Collins Street, in Melbourne, Victoria. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by July 11, 2025 at 9:00 a.m. David Orr and Sal Algeri of Deloitte SRT Pty Ltd were appointed as administrators of the company on April 16, 2025. ========= C H I N A ========= AIRNET TECH: Agrees to Sell Subsidiaries to AR iCapital for US$1 ---------------------------------------------------------------- AirNet Technology Inc. disclosed in a Form 6-K Report filed with the U.S. Securities and Exchange Commission that the Company entered into certain share purchase agreement with AR iCapital LLP, a Singaporean company, which is not affiliated with AirNet or any of its directors or officers (the "Purchaser") and Broad Cosmos Enterprises Ltd., a British Virgin Islands company, Air Net International Limited, a British Virgin Islands company, Air Net (China) Limited, a Hong Kong company, Shenzhen Yuehang Information Technology Co., Ltd., a PRC company, Xian Shengshi Dinghong Information Technology Co., Ltd., a PRC company, Yuehang Chuangyi Technology (Beijing) Co., Ltd., a PRC company (collectively, the "Targets"). Pursuant to the Disposition SPA, AR iCapital agreed to purchase the Targets in exchange for nominal cash consideration of US$1. Upon the closing of the transaction contemplated by the Disposition SPA, AR iCapital will become the sole shareholder of the Targets and as a result, assume all assets and liabilities of the Targets and subsidiaries owned or controlled by the Target. The Closing of the Disposition is subject to the satisfaction or waiver of certain closing conditions including the payment of the Purchase Price, the receipt of a fairness opinion from an independent firm, and approval by the Company's shareholders. The Company's organizational structure chart prior to and after the consummation of the Disposition is available at https://tinyurl.com/y9p2u5p8 Full text copy of the Disposition SPA: https://tinyurl.com/bdzer2x8 About AirNet Technology AirNet Technology Inc. was incorporated in the Cayman Islands on April 12, 2007. AirNet, its subsidiaries, through its variable interest entities and the VIEs' subsidiaries, operate its out-of-home advertising network, primarily air travel advertising network, in the People's Republic of China. The Company also conducts cryptocurrencies mining business operations by its Hong Kong subsidiary, Blockchain Dynamics Limited. Singapore-based Assentsure PAC, the Company's auditor since 2025, issued a "going concern" qualification in its report dated May 2, 2025, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company has a history of operating losses and negative operating cash flows and has negative working capital of approximately US$52.6 million as of December 31, 2024. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Historically, the Company has relied principally on both operational sources of cash and non-operational sources of equity and debt financing to fund its operations and business development. The Company's ability to continue as a going concern depends on management's ability to successfully execute its business plan which includes increasing the utilization rate of existing staffs and potential financing from public market or private placement. However, there is no assurance that the measures can be achieved as planned. FTX: Chinese Customers in Limbo Over Local Crypto Crackdown ----------------------------------------------------------- WSJ Pro Bankruptcy reports that hundreds of millions of dollars of FTX customer claims are at risk of being held up or potentially not being paid because the account holders live in China, Afghanistan or 47 other areas that restrict cryptocurrency activity. A creditor trust set up by the defunct crypto exchange said last week that it shouldn't make distributions to customers in those "potentially restricted" markets until it determines that it can do so without breaking foreign laws, WSJ Pro Bankruptcy relates. FTX is the world's second-largest cryptocurrency firm. FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products and leveraged tokens. Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that FTX paused customer withdrawals after it was hit with roughly $5 billion worth of withdrawal requests. Faced with liquidity issues, FTX on Nov. 9, 2022, struck a deal to sell itself to its giant rival Binance, but Binance walked away from the deal amid reports on FTX regarding mishandled customer funds and alleged US agency investigations. Bankman-Fried agreed to step aside, and restructuring vet John J. Ray III was quickly named new CEO. FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc. (d/b/a FTX US), Alameda Research Ltd. and certain affiliated companies then commenced Chapter 11 proceedings (Bankr. D. Del. Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022. Additional entities sought Chapter 11 protection on Nov. 14, 2022. FTX Trading and its affiliates each listed $10 billion to $50 billion in assets and liabilities, making FTX the biggest bankruptcy filer in the US this year. According to Reuters, SBF shared a document with investors on Nov. 10, 2022, showing FTX had $13.86 billion in liabilities and $14.6 billion in assets. However, only $900 million of those assets were liquid, leading to the cash crunch that ended with the company filing for bankruptcy. The Hon. John T. Dorsey is the case judge. The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel; Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal North America, LLC as financial advisor. Kroll is the claims agent, maintaining the page https://cases.ra.kroll.com/FTX/Home-Index The Official Committee of Unsecured Creditors tapped Paul Hastings as counsel, FTI Consulting, Inc., as financial advisor, and Jefferies LLC as the investment banker. Young Conaway Stargatt & Taylor LLP is the Committee's Delaware and conflicts counsel. Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory T. Donilon, Edward L. Schnitzer, and David M. Banker, is representing Sam Bankman-Fried in the Chapter 11 cases. White-collar crime specialist Mark S. Cohen has reportedly been hired to represent SBF in litigation. Lawyers at Paul Weiss previously represented SBF but later renounced representing the entrepreneur due to a conflict of interest. ================= H O N G K O N G ================= CNT SECURITY: To Cease Operation Next Year, 2,000 Jobs at Risk -------------------------------------------------------------- South China Morning Post reports that a leading security firm in Hong Kong chaired by a retired senior police officer will cease operations before next April, with more than 2,000 employees expected to be laid off. CNT Security Company attributed the decision to a recent board resolution, the Post says. The news emerged after the company informed the landlords of Allway Gardens, a residential estate in Tsuen Wan, that their request to extend its contract until December this year could not be fulfilled, according to the Post. The letter, dated June 20, was signed by the company's general manager, Mario Wu. According to the Post, Chiu Yan-loy, a former Tsuen Wan district council member and now secretary of the Allway Gardens owners' corporation, said residents were surprised. "Residents were rather shocked when learning the news. We have been using the company's service for more than 10 years, and most residents are very happy with its service," he said. Chiu added that CNT Security had proposed increasing management fees following the recent rise in the minimum wage to HK$42.10 (US$5) per hour, an issue the owners' corporation planned to discuss at a later meeting, the Post relays. "There has not been any sign of financial or manpower difficulty," he added, notes the report. "But then came such news without warning. "I learned from a senior executive from CNT Security that their staff was also surprised by the decision. He said it did not seem to be due to the company making losses." Alway Gardens is one of the largest private residential developments in Tsuen Wan, comprising 3,400 flats across four phases. The Post relates that Chiu also quoted the CNT Security senior executive as saying the company was contacting its clients to work out exit arrangements. "He also said there was no plan to sell the business or rebrand it under a different name, saying the board did not want the company's reputation to be tarnished should the future buyer not run the business properly," Chiu said. Ultimately, some 2,000 employees could be made redundant, Chiu added, quoting the executive, the Post relays. When contacted by the Post on June 23, duty staff at CNT Security headquarters said they had not heard of any company closure plan but declined to comment further. Cnt Security Company Limited's line of business includes providing detective, guard, and armored car services. ========= I N D I A ========= AISHWARYA AVANT: CARE Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Aishwarya Avant Builders LLP (AABL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 18.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale and key rating drivers CARE Ratings Limited (CareEdge Ratings) had, vide its press release dated May 29, 2024, placed the rating(s) of AABL under the 'issuer non-cooperating' category as AABL had failed to provide information for monitoring of the rating as agreed to in its Rating Agreement. AABL continues to be non-cooperative despite repeated requests for submission of information through e-mails dated April 14, 2025, April 24, 2025, May 4, 2025 among others. In line with the extant SEBI guidelines, CareEdge Ratings has reviewed the rating on the basis of the best available information which however, in CareEdge Ratings 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 Avant group is a Mumbai based real estate developer which was established in the year 2010 by founder/promoter Mr. Sudeep Saha. The other promoter is Mr. Harsh R Shah. The Firm Aishwarya Avant Builders LLP is currently developing a residential redevelopment project in jogeshwari (East), Mumbai. The project is known as "Avant Heritage" which comprises of Phase-I & Phase-II located adjacent to each other and having total saleable area of 1.04 lakh sq. ft. B.N. CHAVAN: CARE Keeps B- Debt Rating in Not Cooperating Category ------------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of B.N. Chavan (BC) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 3.50 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale and key rating drivers CARE Ratings Limited (CareEdge Ratings) had, vide its press release dated June 25, 2024, placed the rating(s) of BNC under the 'issuer non-cooperating' category as BC had failed to provide information for monitoring of the rating as agreed to in its Rating Agreement. BC continues to be non-cooperative despite repeated requests for submission of information through e-mails dated May 11, 2025, May 21, 2025 and May 31, 2025 among others. In line with the extant SEBI guidelines, CareEdge Ratings has reviewed the rating on the basis of the best available information which however, in CareEdge Ratings' 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: Stable BNC was established in 2002 as a proprietorship firm by Mr Balu Namdeo Chavan and engaged in executing contracts mainly for construction of roads and laying and repairing drainage lines for government entities. Furthermore, the firm is registered as a Class 1A contractor with Public Works Department, Maharashtra and has its major presence in Pune district. BIRD CONSULTANCY: Insolvency Resolution Process Case Summary ------------------------------------------------------------ Debtor: Bird Consultancy Services Private Limited E-9, Cannaught House, Cannaught Place, New Delhi - 1, India Insolvency Commencement Date: June 13, 2025 Estimated date of closure of insolvency resolution process: December 9, 2025 Court: National Company Law Tribunal, New Delhi Bench Insolvency Professional: Nisha Malpani Incube, 5th Floor, Punj Essen House, 17-18, Nehru Place, New Delhi - 110019 Email: ip.nmalpani@gmail.com 9th Floor, Tower A-1, Regus, Spaze I-Tech Park, Sector 49, Gurugram-122018, India Email: cirpbirdconsultancyservices@gmail.com Last date for submission of claims: June 27, 2025 BRAND NETWORKS: Voluntary Liquidation Process Case Summary ---------------------------------------------------------- Debtor: BRAND NETWORKS APAC SOLUTIONS PRIVATE LIMITED 131 SECTOR 44A, Chandigarh, CHANDIGARH, Chandigarh, India, 160047 Liquidation Commencement Date: May 10, 2025 Court: National Company Law Tribunal New Delhi Bench Liquidator: Manoj Kumar Anand 3rd Floor, 2nd Community Centre, (Near PVR/McDonald's), Naraina, New Delhi-110028 Email: brandvl2025@gmail.com Phone No: 011-45051903, 45641903 Last date for submission of claims: July 20, 2025 ESSENTIAL LOGISTICS: Insolvency Resolution Process Case Summary --------------------------------------------------------------- Debtor: ESSENTIAL LOGISTICS PRIVATE LIMITED No. 68, Opp. KBD Bommanahalli Village, Nelamangala Taluk, Bengaluru, Karnataka, 562123 Insolvency Commencement Date: June 12, 2025 Estimated date of closure of insolvency resolution process: December 9, 2025 Court: National Company Law Tribunal, Bengaluru Bench Insolvency Professional: ADDANKI HARESH No.36/1, 2nd floor, Munivenkatappa Complex, Bellary Road, Ganga Nagar, Bangalore 560032 Email: addanki.haresh@gmail.com Email: cirp.essential@gmail.com Last date for submission of claims: July 4, 2025 GMR HYDERABAD: S&P Alters Outlook to Positive, Affirms 'BB' LT ICR ------------------------------------------------------------------ S&P Global Ratings revised its rating outlook on GMR Hyderabad Airport (GHIAL) to positive from stable. At the same time, S&P affirmed its 'BB' long-term issuer credit rating on GHIAL and the issue rating on its senior secured notes. S&P said, "The positive outlook reflects our view that GHIAL's business position could improve over the next 12 months if the timeliness and predictability of tariff resets for Indian airports improve. We also expect GHIAL's good funding access to the domestic debt market will help GHIAL manage refinancing risk for its upcoming U.S. dollar bond maturity in February 2026. "We expect GHIAL to implement its new tariffs in a timely manner, reflecting improving timeliness of tariff resets and a more favorable regulatory environment for Indian airports. Higher tariffs could help the airport operator absorb its upcoming large expansion plan. We expect leverage to rise over the peak capex phase of fiscal years 2028 and 2029 (year ending March 31). "Improving timeliness of tariff reset reflects a more favorable regulatory environment for Indian airports. We expect the regulator to implement tariffs on time for GHIAL's next control period (CP4; April 1, 2026-March 31, 2031). Tariffs for the current control period were delayed by only six months, which is faster than in previous periods. "In our view, the regulatory environment for Indian airports has strengthened, with more timely tariff adjustments, a more efficient consultation process, and swifter resolution of regulatory disputes. This could change our assessment of GHIAL's business position over the next 12 months, as we gain more clarity on the tariff reset process, including that of other airports. Timely tariff resets will support cash flow stability for the airports and reduce substantial swings in tariff revenue. "Like other Indian airports, GHIAL's earnings benefit from strong growth in passenger traffic. We expect passenger traffic to grow at least 10% over the next few years, following about 16% growth in fiscal 2025. This also supports the company's business profile." GHIAL's financials will remain resilient over the next control period despite much higher capital spending. Higher earnings and cash flow will partly offset the company's high expansion in capital expenditure (capex), with a ratio of funds from operations (FFO) to debt of about 16% in the fiscal year ending March 31, 2027, (fiscal 2027), then moderating to 8%-10% over fiscal years 2028 and 2029 when capex spend will peak. S&P said, "We also forecast the company's ratio of operating cash flow (OCF) to debt to trend at 8%-10% during peak expansion. We view this to be adequate for the rating, given the improving business strength. "We believe the company will earn higher CP4 tariff as the regulatory framework allows for adequate recovery on its capex expansion over the five-year tariff period. We estimate CP4 tariffs could be 15%-20% above current levels, resulting in aeronautical revenue per passenger of more than Indian rupee (INR) 500." Tariffs could be higher if GHIAL benefits from a favorable ruling by Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on certain issues for past regulatory periods. This judgement is pending a final hearing from the Supreme Court, and S&P has not factored any upside into our tariff assumption. GHIAL's capex will climb as it enters the next phase of expansion. The company expects to spend about INR139 billion over the next control period, more than double our previous assumption of INR55 billion. The large expansion in capex will increase the airport's capacity to about 67 million passengers a year by fiscal 2031, from the current capacity of 34 million. S&P said, "We believe robust traffic growth will support the need for capacity expansion, which will be compensated through the tariff framework. GHIAL will fund the capex largely through debt. The expansion includes construction of a second runway, an elevated taxiway, and a passenger terminal building. We forecast GHIAL's annual capital spending to peak at about INR60 billion in fiscal 2028 and INR52 billion in fiscal 2029, weighing on ratios over the period. "We believe GHIAL can manage refinancing risk for an upcoming U.S. dollar bond maturity in February 2026. The company plans to raise domestic debentures and start the bond tender offer process in September 2025. This could be done in tranches over the next few months. "In our view, GHIAL has good funding access to both onshore and offshore debt markets. In particular, the domestic debt market has ample liquidity and is supportive of infrastructure assets with regulated returns such as airports. The positive rating outlook over the next 12 months reflects our expectation that GHIAL's business position could improve if the regulatory track record for timely and predictable tariff resets for Indian airports continues to strengthen. "We also expect GHIAL will refinance its bond maturing in February 2026 on time by tapping the domestic bond market. "We could revise the outlook on GHIAL to stable if the regulatory framework for Indian airports sees no further material improvement, leading to prolonged delays on tariff resets. "In a less likely scenario, we could lower the rating if refinancing risk for the upcoming February 2026 bond increases, leading to a significantly worsening liquidity position." S&P could raise the rating on GHIAL if one of the following occurs: -- S&P believes the regulatory framework for Indian airports has strengthened further with timely tariff implementations. This would support stronger cash flow visibility over future tariff resets. Tariff resets without material delay in GHIAL or other airports over the next 12 months would indicate such an improvement. -- In a less likely scenario, GHIAL's financial profile continues to strengthen such that its FFO-to-debt ratio appears likely to stay above 13% on a sustainable basis. This could happen if GHIAL earns a CP4 tariff that is much higher than S&P's current base case, for instance if potential upside from a favorable ruling by TDSAT is included. GUINEA MOTORS: CRISIL Lowers Rating on LT/ST Ratings to D --------------------------------------------------------- CRISIL Ratings has revised the ratings on certain bank facilities of Guinea Motors Private Limited (GMPL), as: Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Rating - Crisil D (ISSUER NOT COOPERATING; Downgraded from 'Crisil B+/Stable ISSUER NOT COOPERATING') Short Term Rating - Crisil D (ISSUER NOT COOPERATING; Downgraded from 'Crisil A4 ISSUER NOT COOPERATING') Crisil Ratings has been consistently following up with GMPL for obtaining information through letter and email dated July 2, 2024 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 GMPL, which restricts Crisil Ratings' ability to take a forward-looking view on the entity's credit quality. Crisil Ratings believes that rating action on GMPL is consistent with 'Assessing Information Adequacy Risk'. The rating on the bank facilities of GMPL has been downgraded to 'Crisil D/Crisil D Issuer Not Cooperating' from 'Crisil B+/Stable/Crisil A4 Issuer Not Cooperating' basis the delay in the debt servicing obligation as reported in the audit report for fiscal 2024. The company has not disclosed these delays in the NDS provided in July 2024. GMPL, incorporated in 2000, is an authorised dealer of Tata Motors Ltd (TML) for the latter's entire range of passenger cars, spares and accessories. GMPL also provides servicing of passenger cars in Patna. GMPL has been associated with TML since 2001. The daily operations are looked after by the promoter and director, Mr A K Gupta. The company has one showroom and two service centers in Patna, Bihar. INDUSTRIAL HANDLING: CRISIL Keeps B+ Ratings in Not Cooperating --------------------------------------------------------------- Crisil Ratings said the ratings on bank facilities of Industrial Handling (IH) continue to be 'Crisil B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 0.17 CRISIL B+/Stable (ISSUER NOT COOPERATING) Cash Credit 2.50 CRISIL B+/Stable (ISSUER NOT COOPERATING) Term Loan 2.83 CRISIL B+/Stable (ISSUER NOT COOPERATING) Crisil Ratings has been consistently following up with IH for obtaining information through letter and email dated May 2, 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 IH, which restricts Crisil Ratings' ability to take a forward looking view on the entity's credit quality. Crisil Ratings believes that rating action on IH is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the rating on bank facilities of IH continues to be 'Crisil B+/Stable Issuer not cooperating'. IH, set-up in 1985 as a proprietorship firm by Mr Champa Nandi, is in the business of providing heavy hydraulic equipment and crane rental services. The company has a fleet size of 70 cranes with capacity 20- 400 Metric Tonnes. It also has a workshop in Haldia equipped with good infrastructure, qualified and expert mechanics, operators who are well- versed in modern technology. JAY AMBE: CRISIL Reaffirms B+ Rating on INR6cr Cash Debt -------------------------------------------------------- Crisil Ratings has reaffirmed its 'Crisil B+/Stable/Crisil A4' ratings on the bank facilities of Jay Ambe Construction Co. (JACC). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 4 Crisil A4 (Reaffirmed) Cash Credit-Stock 6 Crisil B+/Stable (Reaffirmed) The ratings continue to reflect the firm's susceptibility to risks inherent in tender-based operations, modest scale of business and low operating margin. These weaknesses are partially offset by the extensive experience of the promoter in the civil construction industry. Analytical approach Crisil Ratings has evaluated the standalone business and financial risk profiles of JACC. Key rating drivers and detailed description Weaknesses: * Susceptibility to risks inherent in tender-based operations: Revenue and profitability depend entirely on the firm's ability to win tenders. Also, entities in this segment face intense competition, thus requiring them to bid aggressively to procure contracts, which restricts the operating margin to a moderate level. Also, given the cyclicality inherent in the construction industry, the ability to maintain profitability through operating efficiency becomes critical. * Modest scale of operations: The business risk profile of JACC is constrained by its modest scale of operations in the intensely competitive civil construction industry, thus limiting its operating flexibility. Revenue was INR15 crore in fiscal 2024 and is estimated at around INR29 crore in fiscal 2025. The firm has an order book of INR46.89 crore to be executed in the next 24-30 months, giving revenue visibility over the medium term. Timely execution of the same will remain monitorable over the medium term. * Low operating margin: The operating margin of the entity has marginally moderated from 3.35% in fiscal 2024 to 3.14% in fiscal 2025 and is expected to remain at a similar level over the medium term. Sustained increase in the margin will continue to be monitorable over the medium term. Strength: * Extensive experience of the proprietor: The two-decade-long experience of the proprietor, his strong understanding of the market dynamics and healthy relationships with suppliers and customers will continue to support the business. Liquidity: Stretched Liquidity is expected to be stretched considering the modest net cash accrual of INR0.3-0.5 crore. However, considering no term debt obligations over the medium term, the cash accrual would aid liquidity. Bank limit utilisation was moderate at 58.79% on average for the 12 months through May 2025. Outlook: Stable JACC will continue to benefit from the extensive experience of the proprietor and established relationships with clients. Rating sensitivity factors Upward factors: * Increase in operating margin to 3.5% and better revenue leading to high cash accrual * Improvement in the financial risk profile Downward factors: * Decline in revenue by 20% and profitability below 1% leading to low net cash accrual * Substantial increase in the working capital requirement weakening the liquidity and financial risk profile Established in 2006, JACC is owned and managed by Mr Sanjay P Patel. The Ahmedabad (Gujarat)-based firm undertakes civil construction works, such as that of government buildings, classrooms and residential units for government employees. JGI METAL: CRISIL Reaffirms B Rating on INR37.5cr Term Loan ----------------------------------------------------------- Crisil Ratings has reaffirmed its 'Crisil B/Stable/Crisil A4' ratings on the bank loan facilities of JGI Metal Convertors Pvt Ltd (JMCPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 5 Crisil A4 (Reaffirmed) Cash Credit 25 Crisil B/Stable (Reaffirmed) Proposed Fund- Based Bank Limits 5.5 Crisil B/Stable (Reaffirmed) Term Loan 37.5 Crisil B/Stable (Reaffirmed) The rating reflects exposure to risks related to the ongoing project and expectation of a leveraged capital structure. These weaknesses are partially offset by the extensive experience of the promoters in the steel industry. Analytical Approach Crisil Ratings has evaluated the standalone business and financial risk profile of JMCPL. Unsecured loans from promoters of INR26.50 Crore has been treated as NDNE. Key Rating Drivers & Detailed Description Weaknesses: * Leveraged Capital Structure: JMCPL's financial risk profile is marked with Total outside liabilities to adjusted debt (TOL/TNW) of 3.24 times as on March 31, 2025. It is expected to come down with steady repayments. * Subdued Debt Protection metrics: Owing to initial stages of operations, the company's profitability is marked by margins around 6.81%. This had contributed to subdued debt protection metrics indicated by Operating Profit Coverage around 0.96 times in FY25. It is however expected to improve with stabilization in operations. Strength: * Extensive experience of the promoters: The two-decade-long experience of the promoters in the steel business, through the group firm, JGIFAPL, and their healthy relationships with suppliers and customers, will continue to support the business risk profile. The company has secured distributorship of various reputed steel product manufacturers such as JSW, SAIL, and Tata Steel. Liquidity: Stretched Bank limit utilisation was moderate averaging around 78% for the 6 months ended March 31, 2025. Expected cash accrual of over INR7- 10 crore will be sufficient against repayment obligations in the medium term. Current ratio was 1.2 times as on March 31, 2025. Outlook: Stable Crisil Ratings believes that JMCPL will benefit from the extensive experience of its promoters in the steel industry. Rating sensitivity factors Upward factors: * Timely stabilisation of operations at the proposed plant and significant revenue and profitability generating cash accrual of above INR8 crore * Improvement in financial risk profile and efficient working capital management Downward factors: * Decline in revenues or profitability less than 6% leading to lower-than-expected accruals * Pile up of inventory and delay in collections, impinging liquidity. JMCPL was incorporated in 2022. The company is currently setting up a plant to manufacture steel components such as flat steel, cold rolled steel, galvanised plain sheet, pre-painted galvalume sheets in Sri City, Andhra Pradesh, with an installed capacity of 20,000 metric tonnes per month. The plant has been operational since February 2024. Operations are managed by Mr Siddharth Goyal and Ms Sonia Goyal. JYOTI CAPSULES: Voluntary Liquidation Process Case Summary ---------------------------------------------------------- Debtor: JYOTI CAPSULES PRIVATE LIMITED 123/37 Saresh Bagh, Kanpur Uttar Pradesh, India-208012 Liquidation Commencement Date: June 15, 2025 Court: National Company Law Tribunal, Allahabad Bench Liquidator: Ankit Misra Flat No 401, 3rd Floor, Siddhi Sona Apartment, House No. 127/764/42, W-1 Block, Saket Nagar, Uttar Pradesh-208014 Email: ankit99900@gmail.com, Contact Number: 9792200692 Last date for submission of claims: July 16, 2025 KANCHAN OIL: CARE Lowers Rating on INR27cr LT Loan to B ------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Kanchan Oil Industries Limited (KOIL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 27.00 CARE B; Stable; ISSUER NOT Facilities COOPERATING; Rating moved to ISSUER NOT COOPERATING category and Downgraded from CARE B+; Stable Rationale and key rating drivers CARE Ratings Limited (CareEdge Ratings) had, vide its press release dated June 5, 2024, placed the rating(s) of KOIL under the 'issuer non-cooperating' category as KOIL had failed to provide information for monitoring of the rating as agreed to in its Rating Agreement. KOIL continues to be non-cooperative despite repeated requests for submission of information through e-mails dated April 21, 2025, May 1, 2025, May 11, 2025 among others. In line with the extant SEBI guidelines, CareEdge Ratings has reviewed the rating on the basis of the best available information which however, in CareEdge Ratings 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 KOIL have been revised on account of non-availability of requisite information. Analytical approach: Standalone Outlook: Stable Incorporated in 1974, Kanchan Oil Industries Limited (KOIL), belongs to the Kolkata-based Edible group with Budge Budge Refineries Limited as its flagship company. The company is currently involved in the hydrogenation of vegetable oil/Vanaspati and manufacturing of crude oils from fatty acids (by-product). The manufacturing facilities are located in Jhargram, West Bengal and is an ISO 9001-2000 certified organization. KOIL has refining capacity of 80MT/day, Hydrogenation of Vegetable Oil/ Vanaspati capacity of 60MT/day, Bakery Fat capacity of 60MT/day and Blended Vegetable Oil (Packing) capacity of 50MT/day. KANSOCLOUD INDIA: Voluntary Liquidation Process Case Summary ------------------------------------------------------------ Debtor: KANSOCLOUD INDIA PRIVATE LIMITED 402, Divya Jyoti Apartment, New Bhupal Puraudaipur, Udaipur, Udaipur, Rajasthan, India, 313001 Liquidation Commencement Date: June 18, 2025 Court: National Company Law Tribunal, Jaipur Bench Liquidator: Mr. Sandeep Jawaharlal Singhal 313/314, Giri Shikhar, Plot No. 8891, Opposite Goenka Hall, JB Nagar, Andheri (east), Mumbai City, Maharashtra, 400059 Email Id: sandeepjsinghal@hotmail.com Contact Number: 9820060027 Last date for submission of claims: July 18, 2025 LABLAND BIOTECHS: Insolvency Resolution Process Case Summary ------------------------------------------------------------ Debtor: LABLAND BIOTECHS PRIVATE LIMITED Plot #11 and #12, KIADB, Hootagalli Village, Kasaba Hobli, Mysore taluk, Belavadi, Mysore - 570018, Karnataka Insolvency Commencement Date: June 13, 2025 Estimated date of closure of insolvency resolution process: December 9, 2025 Court: National Company Law Tribunal, Bengaluru Bench Insolvency Professional: Ms. Ramela Rangasamy A6, Aryaa Harmony Apartment, Police Kandasamy Street, Olympus, Ramanathapuram, Coimbatore, Tamil Nadu 641045 Email: rum_jai@yahoo.com Email: cirp.lablandbiotechs@gmail.com Last date for submission of claims: July 3, 2025 LAKSHMI INFRA: CARE Cuts Rating INR450cr Loans to D --------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Lakshmi Infrastructure and Developers India Private Limited (LIDIPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 50.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category and Downgraded from CARE C Long Term/ 450.00 CARE D/CARE D; ISSUER NOT Short Term COOPERATING; Rating continues Bank Facilities to remain under ISSUER NOT COOPERATING category and Downgraded from CARE C; Stable/CARE A4 Rationale and key rating drivers CARE Ratings Limited (CareEdge Ratings) had, vide its press release dated October 30, 2024, placed the rating(s) of LIDIPL under the 'issuer non-cooperating' category as LIDIPL had failed to provide information for monitoring of the rating as agreed to in its Rating Agreement. LIDIPL continues to be non-cooperative despite repeated requests for submission of information through e-mails dated July 1, 2025 among others. In line with the extant SEBI guidelines, CareEdge Ratings has reviewed the rating on the basis of the best available information which however, in CareEdge Ratings' 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 LIDIPL have been revised on account of non-availability of requisite information. The revision also factored in the delay in debt servicing recognized from lender as well as auditor's feedback. Analytical approach: Standalone Outlook: Not Applicable Initially established as a partnership firm by the name "Lakshmi Constructions" in 2004, in Vijayawada, Andhra Pradesh; the company is involved in civil engineering construction activities in the road & highways sector. Subsequently, the firm was incorporated as Lakshmi Infrastructure and Developers India Private Limited (LIDIPL) in 2014. The company was founded by Mr. Ravi Kiran who has about two decades of experience in the civil construction sector. Mr. Ravi Kiran, Ms. Lakshmi Prasanna and Mr. V Suresh are the directors of the entity, who are also the promoters. LGW INDUSTRIES: CARE Moves B Debt Rating to Not Cooperating ----------------------------------------------------------- CARE Ratings has migrated the ratings on certain bank facilities of LGW Industries Ltd. (LGW), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 27.00 CARE B; Stable; ISSUER NOT Facilities COOPERATING; Rating moved to ISSUER NOT COOPERATING category Rationale and key rating drivers CARE Ratings Ltd. has been seeking information from LGW to monitor the rating(s) vide email communications dated May 9, 2025, May 12, 2025, May 19, 2025 and June 18, 2025 and numerous phone calls. However, despite repeated requests, the company has not provided the requisite information for monitoring the ratings. 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. Further LGW Industries Limited has not paid the surveillance fees for the rating exercise agreed to in its Rating Agreement. The rating of LGW Industries Limited's bank facilities will now be denoted as 'CARE B; Stable; ISSUER NOT COOPERATING'. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings have been revised on account of lack of clarity on future growth strategy and inability to monitor the performance of the company, which is critical for assessing the credit risk profile of the company. The rating remains constrained by relatively small scale of operations, vulnerability of margins to volatility in prices of traded goods, weak financial risk profile characterized by thin profitability margins, low net worth and working capital intensive nature of operations, highly fragmented trading industry and intense competition. However, the ratings derive strength from its experienced promoters with satisfactory operational track record and satisfactory order book position. Analytical approach: Standalone Outlook: Stable Detailed description of key rating drivers: At the time of last rating on June 28, 2024, the following were the rating strengths and weaknesses. Key weaknesses * Highly fragmented trading industry categorised by intense competition: The trading industry is characterized by its high fragmentation and intense competition, primarily due to low barriers to entry and a large number of unorganized participants. Moreover, the number of entrants into this sector is anticipated to rise, with existing players becoming increasingly aggressive. Significant fluctuations in raw material prices pose a challenge, as fierce competition may prevent firms from passing on these costs, potentially leading to further erosion of margins. * Relatively small scale of operations: LGW, a small-sized player in the trading industry, reported a profit after tax (PAT) of INR3.01 crore during FY24, with a total income of INR57.48 crore. TOI has moderated in FY24 on the back of lower demand of FMCG products/imitation jewellery due to elections in Bangladesh which impacted sales for around 2 months. Moreover, the export incentive for FY24 stood at INR1.30 crore in FY24 vis-à-vis INR3.99 crore in FY23 (includes an incentive of INR2.50 crore for the year 2006-2008). The company's small scale prevents it from benefiting from economies of scale. Additionally, the highly competitive and fragmented nature of the trading industry limits LGW's bargaining power with customers. * Vulnerability of margins to volatility in prices of traded goods: LGW sources miscellaneous items such as imitation jewellery, machinery, FMCG products and other goods from domestic players. These items are then exported directly to customers in Bangladesh or through intermediaries on a commission basis. The prices of these goods are inherently volatile. * Weak financial risk profile characterized by low net worth, low profitability margins and working capital intensive nature of operations: The firm's net worth turned negative in FY16 on account of non-realization of export of cotton yarn receivables and write off the same. The firm stopped export of cotton yarn and focused on export of imitation jewellery. The negative net worth improved from negative INR11.56 crore as on March 31, 2016 to negative net worth of INR2.49 crore as on March 31, 2023 due to accretion of profit over the years. On account of PAT of INR2.81 crore coupled with equity infusion of INR0.73 crore, in FY24 the company's net worth turned positive to INR1.27 crore as on March 31, 2024. However, capital structure continues to remain leveraged with overall gearing of 15.46x as on March 31, 2024. Debt profile of the firm primarily comprised of LAP loan, home loan and unsecured loan from corporate body, promoter, and relatives. The company leased out its property in 'Godrej Waterside' having Built up area of 19,787 sqft to Digitech Call System Pvt Ltd for a period of 11 months starting from Feb. 1, 2024 at a monthly lease rent of INR4,00,000 between Feb and August 2024 and monthly lease rent of INR7,91,480 between Sept and Dec 2024. The company has availed LAP loan from Axis bank mortgaging the said property (o/s LAP loan amounts to INR7.69 crore) wherein monthly EMI payment is INR10,00,500. Before leasing out this property in Feb 2024, the property was leased out to I-pac for the period between April and Jun 2023 at a monthly rental of INR0.13 crore. The company is making part payment for the loan through its other businesses. Axis Bank has also sanctioned INR4 crore OD facility to fund its working capital requirement. Apart from the same, the firm has o/s home loan of INR6.95 crore from HDFC Bank and PNB Housing Finance to fund working capital requirement. Although the firm's business is working capital intensive in nature, the firm takes advance from customers to execute the orders and had received INR23.49 crore in advance as on March 31, 2024. Moreover, the firm has optimized its inventory holding over the last few years to reduce the working capital intensity of operations. Out of INR2.86 crore of o/s debtors for more than 6 months as on March 31, 2024, INR2.79 crore pertain to Met Technologies Pvt Ltd which are o/s for more than 3 years. Since the firm has limited working capital facility of INR4 crore, its working capital requirements are met by a combination of creditors, secured and unsecured loans. Key strengths * Experienced promoters and satisfactory operational track record: Shri Abhay Kumar Gupta (aged 59 years), the promoter of the LGW, has been in same line of business for more than last 26 years and has immense knowledge of the raw cotton trading business in domestic as well as international market. He is supported by his son Shri Bharat Gupta who also has around 11 years of experience in the same line of business. * Satisfactory order book: The company has order book of INR44.5 crore from clients based out of Bangladesh as on March 31, 2024, vis-à-vis INR35 crore as on Jul 18, 2023. The company supplies to its export customers only after receiving advances. As on Mar 31, 2024, the company had customer advance of INR23.5 crores. LGW Industries Ltd. (LGW), a public limited company, formed in 1998 by Shri Abhay Kumar Gupta of Kolkata, West Bengal is engaged in merchant trading of miscellaneous item like, imitation Jewelleries, machineries, FMGC products and other items to the international market majorly Bangladesh. Previously, the firm was involved in merchant trade of raw cotton, which was later terminated in 2016 owing to unanticipated losses in the past. Over the period, it has established its position as a quality driven export house and is recognized as a 'Star export house'. LGW is a closely held company. The day-to-day affairs of the firm are looked after by Shri Abhay Kumar Gupta, with support from his son Shri Bharat Gupta. Apart this, LGW derives income from sales of land and flats. The company had JV with Prajapati Properties Pvt Ltd, and JV partner had developed a standalone residential project in Rajarhat, Kolkata and land is owned by LGW. The project has already been completed and LGW received 6 flats (3 2BHK and 3 3 BHK) as against its land (valued at INR0.14 crore in its books as on Mar 31, 2024). As per the management, LGW has already sold 4 flats and remaining 2 flats remain unsold. The company has mortgaged the said 2 flats to PNB for LAP. LUDHIANA TALWANDI: Insolvency Resolution Process Case Summary ------------------------------------------------------------- Debtor: Ludhiana Talwandi Toll Roads Private Limited 513/A, 5th Floor, Kohinoor City, Kirol Road, L.B.S. Marg, Off Bandra-Kurla Complex, Kurla (W), Mumbai 400070, Maharashtra Insolvency Commencement Date: June 19, 2025 Estimated date of closure of insolvency resolution process: December 16, 2025 Court: National Company Law Tribunal, New Delhi Bench Insolvency Professional: Vikram Kumar Sector B-1/1748, Vasant Kunj, Near MTNL Office, New Delhi - 110070 Email: vikramau@gmail.com Email: cirp.ludhiana.ttrpl@gmail.com Last date for submission of claims: July 3, 2025 MAHAVIR GLOBAL: CRISIL Withdraws B Rating on INR4cr Export Loan --------------------------------------------------------------- Crisil Ratings has withdrawn its rating on the bank facilities of Mahavir Global Inc (MGI) on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with Crisil Rating's policy on withdrawal of its rating on bank loan facilities. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bill Discounting 2.5 CRISIL B/Stable (Issuer Not Cooperating) (Withdrawn) Cash Credit 1.0 CRISIL B/Stable (Issuer Not Cooperating) (Withdrawn) Long Term Loan 0.5 CRISIL B/Stable (Issuer Not Cooperating) (Withdrawn) Export Packing 4.0 CRISIL B/Stable (Issuer Not Credit Cooperating) (Withdrawn) Crisil Ratings has been consistently following up with MGI for obtaining information through letter and email dated September 9, 2024 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 MGI, which restricts Crisil Ratings' ability to take a forward looking view on the entity's credit quality. Crisil Ratings believes that rating action on MGI is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, Crisil Ratings has continued the rating on bank facilities of MGI to 'Crisil B/Stable Issuer not cooperating'. Set up in 2011 as a partnership firm by Karnal-based Garg family, MGI mills and processes paddy into rice, rice bran, broken rice, and husk. Mr. Anil Garg and his son, Mr. Vishal Garg are partners and also manage operations. METALOGIC DATA: Voluntary Liquidation Process Case Summary ---------------------------------------------------------- Debtor: METALOGIC DATA CONSULTING PRIVATE LIMITED Arukul' III Floor, Door No. 2/3 (ABM) Arch Bishop Mathias Ave, Boat Club Road, Chennai, TN - 600028 Liquidation Commencement Date: June 18, 2025 Court: National Company Law Tribunal, Chennai Bench Liquidator: Sriram Krishnamoorthy No.22, West Wing, Luz Golden Enclave, 180, Luz Church Road, Mylapore, Chennai-600004 Email: ksrics.ip@gmail.com Telephone No.: 9444867208 Last date for submission of claims: July 17, 2025 NEXRISE PUBLICATIONS: Liquidation Process Case Summary ------------------------------------------------------ Debtor: Nexrise Publications Private Limited 1st floor, 6A & 6B, PMR Towers Menambedu High Road Ambattur Industrial Estate, Chennai Tamil Nadu, India, 600098 Liquidation Commencement Date: June 5, 2025 Court: National Company Law Tribunal, Mumbai Bench Liquidator: Mr. Shouvik Kumar Roy Hieghts, Gen AK Vaidya Marg Dindoshi Malad East, Near Sankalp Society, Mumbai Suburban, Maharashtra, 400097 Email: shouvikkumarroy@gmail.com 106, 1st Floor, Kanakia Atrium 2, Cross Road 'A', Chakala MIDC, Andheri (East), Mumbai 400093 Email: cirp.nexrise@gmail.com Last date for submission of claims: July 5, 2025 OCEAN MOTORS: CRISIL Lowers Rating on INR13cr Cash Loan to D ------------------------------------------------------------ CRISIL Ratings has revised the ratings on certain bank facilities of Ocean Motors Private Limited (OMPL), as: Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 13 Crisil D (ISSUER NOT COOPERATING; Downgraded from 'Crisil B+/Stable ISSUER NOT COOPERATING') Channel Financing 10 Crisil D (ISSUER NOT COOPERATING; Downgraded from 'Crisil B+/Stable ISSUER NOT COOPERATING') Inventory Funding 4 Crisil D (ISSUER NOT Facility COOPERATING; Downgraded from 'Crisil B+/Stable ISSUER NOT COOPERATING') Inventory Funding 5 Crisil D (ISSUER NOT Facility COOPERATING; Downgraded from 'Crisil B+/Stable ISSUER NOT COOPERATING') Inventory Funding 5 Crisil D (ISSUER NOT Facility COOPERATING; Downgraded from 'Crisil B+/Stable ISSUER NOT COOPERATING') Inventory Funding 12 Crisil D (ISSUER NOT Facility COOPERATING; Downgraded from 'Crisil B+/Stable ISSUER NOT COOPERATING') Long Term Loan 2.25 Crisil D (ISSUER NOT COOPERATING; Downgraded from 'Crisil B+/Stable ISSUER NOT COOPERATING') Long Term Loan 4 Crisil D (ISSUER NOT COOPERATING; Downgraded from 'Crisil B+/Stable ISSUER NOT COOPERATING') Crisil Ratings has been consistently following up with OMPL for obtaining information through letter and email dated August 12, 2024 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 OMPL, which restricts Crisil Ratings' ability to take a forward-looking view on the entity's credit quality. Crisil Ratings believes that rating action on OMPL is consistent with 'Assessing Information Adequacy Risk'. The rating on the bank facilities of OMPL has been downgraded to 'Crisil D Issuer Not Cooperating' from 'Crisil B+/Stable Issuer Not Cooperating' basis the delay in the debt servicing obligation as per the publicly available information OMPL was incorporated in April 2011, by Mr. Mahendra Patel and Mr. Ravi Nadar. The company is engaged in dealership of Maruti MSIL's passenger cars in Indore (Madhya Pradesh). The company has 6 showrooms in Indore and its nearby locations. ONKAR COTTON: CRISIL Keeps B Debt Rating in Not Cooperating ----------------------------------------------------------- Crisil Ratings said the rating on bank facilities of Sri Onkar Cotton Agro Industries (SOCAI) continues to be 'Crisil B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7.4 Crisil B/Stable (Issuer Not Cooperating) Crisil Ratings has been consistently following up with SOCAI for obtaining information through letter and email dated May 2, 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 SOCAI, which restricts Crisil Ratings' ability to take a forward looking view on the entity's credit quality. Crisil Ratings believes that rating action on SOCAI is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the rating on bank facilities of SOCAI continues to be 'Crisil B/Stable Issuer not cooperating'. SOCAI, founded in 2008 as a partnership firm,gins and presses cotton;it has a product mix of cotton bales and cotton seed. Its production facilities are at Basmath Road, Parbhani district (Maharashtra). OPTIONS LAWNS: CARE Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Options Lawns Private Limited (OLPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.72 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale and key rating drivers CARE Ratings Limited (CareEdge Ratings) had, vide its press release dated June 27, 2024, placed the rating(s) of OLPL under the 'issuer non-cooperating' category as OLPL had failed to provide information for monitoring of the rating as agreed to in its Rating Agreement. OLPL continues to be non-cooperative despite repeated requests for submission of information through e-mails dated May 13, 2025, May 23, 2025, June 2, 2025 among others. In line with the extant SEBI guidelines, CareEdge Ratings has reviewed the rating on the basis of the best available information which however, in CareEdge Ratings 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 Jabalpur- based (Madhya Pradesh), Options Lawns Private Limited (OLPL) was incorporated on April 1, 2016 by Mr Rajneesh Verma. The company is held by Six Sigma Ventures Limited (erstwhile 'Riqueza Capital Investments Limited', a Mauritius based company) along with Mr Rajneesh Verma and Ms. Sakshi Verma. OLPL was incorporated with a purpose to operate a resort in an area of 14000 sq. ft. on Bedhaghat Road, Jabalpur with 52 rooms, 3 banquet halls, 1 garden restaurant, pub, camping site, spa, wellness centre etc. QUARTZKRAFT LLP: CRISIL Hikes Rating on INR14.98cr LT Loan to B --------------------------------------------------------------- Crisil Ratings has upgraded its ratings on the bank facilities of Quartzkraft LLP (QKL) to 'Crisil B/Stable/Crisil A4' from 'Crisil D/Crisil D'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Export Packing 20 Crisil A4 (Upgraded from Credit 'Crisil D') Export Packing 10 Crisil A4 (Upgraded from Credit 'Crisil D') Long Term Bank 14.98 Crisil B/Stable (Upgraded Facility from 'Crisil D') Proposed Fund- 11.9 Crisil B/Stable (Upgraded Based Bank Limits from 'Crisil D') Working Capital 3.12 Crisil B/Stable (Upgraded Term Loan from 'Crisil D') The rating upgrade reflects the track record of timely repayment of debt obligations. The ratings reflect the vulnerability of the operating margin to fluctuations in foreign exchange (forex) rates and raw material prices, working capital-intensive operations and exposure to inherent cyclicality in demand, and average financial risk profile. These weaknesses are partially offset by the extensive experience of the partners in the granite industry and geographical diversification in revenue. Analytical Approach Crisil Ratings has evaluated the standalone business and financial risk profiles of QKL. Key Rating Drivers & Detailed Description Weaknesses: * Vulnerability of operating margin to fluctuations in forex rates and raw material prices: Since majority of the revenue comes from the international market, any sharp fluctuation in forex rates affects realisation and accrual. This exposes the operating margin to fluctuations in forex rates. Raw materials such as marbles and granite account for 50-60% of the total cost of sales. Thus, the firm is likely to remain susceptible to the inherent cyclicality in the end-user industries and to significant volatility in raw material prices, over the medium term. * Working capital-intensive operations and exposure to inherent cyclicality in demand: Gross current assets (GCAs) were at 280-310 days over the three fiscals ended March 31, 2025. The intensive working capital management of the firm is reflected in its gross current assets (GCAs) of 306 days as on March 31, 2025. The large working capital requirement of the firm arises from its large inventory. It is required to extend long credit period. Furthermore, due to its business needs, it holds large work in process and inventory. The marble and granite industry is cyclical and moves in line with the level of activity in the construction sector. * Average financial risk profile: The networth was modest at INR18 crore as on March 31, 2025, but is likely to improve over the medium term, driven by revenue growth. The gearing was high at 3.99 times as on March 31, 2025, and it is expected to remain so over the medium term. The debt protection metrics were weak, as reflected in the interest coverage and net cash accrual to total debt ratios of 2.13 times and 0.08 time, respectively, in fiscal 2025. In the absence of large, debt-funded capital expenditure (capex) or rise in the working capital requirement, the debt protection metrics are expected to remain at similar levels over the medium term. Strength: * Extensive experience of the partners in the granite industry and geographical diversification in revenue: The partners have experience of over 25 years in the granite industry. This has given them an understanding of the market dynamics and enabled them to establish relationships with suppliers and customers. QKL caters to a wide number of clients, both in India and overseas. It consistently derives 100% of its revenue from exports. Diversity in geographical reach and clientele should continue to support the business risk profile. Liquidity: Stretched Bank limit utilisation was high at 98.44% on average for 12 months through May 2025. Annual cash accrual is expected to be over INR5 crore which are tightly sufficient against yearly term debt obligation of INR4-5 crore over the medium term. In addition, it will act as cushion to the liquidity of the company. Current ratio was healthy at 1.31 times as on March 31, 2024. Outlook: Stable Crisil Ratings believes that QKL will continue to benefit from the extensive industry experience of the partners. Rating sensitivity factors Upward factors: * Improvement in the scale of operations resulting in net cash accrual to debt obligation ratio of more than 1.5 times * Improvement in the financial risk profile. Downward factors: * Decline in revenue, leading to net cash accrual of less than INR4 crore * Any large, debt-funded capex or substantial increase in the working capital requirement, weakening the financial risk profile and liquidity QKL was established as a limited liability partnership firm in 2018 and started its commercial operation in August 2020. It is engaged in manufacturing, exporting, and processing of engineered quartz slabs (EQS). The firm has manufacturing facility located in Prakasam District of Andhra Pradesh and promoted by FS Enigma International PTE Ltd, Purple Investment LLC, QNEXT Stone Products Private Limited and The Stone Resources Inc. S S AGROZONE: CRISIL Lowers Rating on INR10.50cr Cash Loan to D --------------------------------------------------------------- Crisil Ratings has downgraded its rating on the long-term bank facilities of S S Agrozone Private Limited (SSAPL) to 'Crisil D' from 'Crisil B/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 10.50 Crisil D (Downgraded from 'Crisil B/Stable') Term Loan 2.82 Crisil D (Downgraded from 'Crisil B/Stable') Working Capital 1.20 Crisil D (Downgraded from Term Loan 'Crisil B/Stable') The rating downgrade reflects the delays in servicing debt obligations by SSAPL in the month of June 2025 as per banker confirmation. The rating continues reflect the delays in the servicing of debt, its modest scale of operations and moderate financial risk profile. These weaknesses are partially offset by the extensive experience of the promoter in the poultry feeding industry. Analytical Approach Crisil Ratings has evaluated the standalone business and financial risk profiles of SSAPL. Key Rating Drivers & Detailed Description Weaknesses: * Delay in the servicing of the debt: SSAPL has delayed the servicing of the debt obligations in the month of June 2025 as per the banker confirmation. * Modest scale of operations: The company has witnessed a decline in topline with a negative CAGR of ~19% over the past four fiscals through FY 24 while marginally growing to INR32.9 crores in fiscal 2025. Intense competition (from numerous organized and unorganized players) will also continue to constrain scalability, and pricing power. Improvement in revenue along with steady operating margin remains a key monitorable. * Moderate financial risk profile: Net worth is modest as estimated to be around INR8.8 to 9 crore as on March 31, 2025 (8.54 crores a year ago). The total outside liabilities to adjusted networth ratio is expected to be around 1.35 to 1.45 times as on March 31, 2025 (1.52 times a year ago) largely driven by high bank limit utilization (average of 100% for the 12 months ended April 30, 2025). Debt protection metrics are expected to remain modest as reflected in interest coverage ratio of 1.8-1.9 times from fiscal 2025 onwards (1.81 times a year ago). The financial risk profile is expected to remain modest going forward and shall improve with the accretion to the reserves. Strength: * Extensive experience of the promoters: The decade-long experience of the promoter in the poultry feeds industry and his in-depth understanding of key market dynamics have enabled the company to build an established network of suppliers and customers, thereby leading to moderate revenue over the years despite intense competition in this industry. Liquidity: Poor Bank limit utilisation is high at around 100 percent for the past twelve months ended April 2025. Liquidity is poor as reflected in delays in debt servicing obligations and full utilization of working capital limits. Rating sensitivity factors Upward factors * Timely debt servicing continuously for at least 90 days. * Substantial increase in revenues or profitability leading to higher cash accrual Incorporated in 2012, by Mr. Sanjay Pandey (promoter and managing director), SSAPL manufactures poultry feed. The Lucknow (Uttar Pradesh)-based company has the capacity to manufacture 8 metric tons of feed per month. S.M. PHARMACEUTICALS: Insolvency Resolution Process Case Summary ---------------------------------------------------------------- Debtor: M/s S.M. Pharmaceuticals Private Limited Plot No: #37/A2, Pillagumpa, Hoskote, Bangalore Ind estate, Bangalore, Karnataka, India - 562114 Insolvency Commencement Date: June 16, 2025 Estimated date of closure of insolvency resolution process: December 13, 2025 Court: National Company Law Tribunal, Hyderabad Bench Insolvency Professional: Nethi Mallikarjuna Setty Flat No.101, Laurel Residency, Road No.18, Panchavati Colony, Manikonda, Hyderabad, Telangana- 500089 Email id: malliknethi@gmail.com #304, Rajeswari Towers, Dwarakapuri Colony, Saibaba Temple Lane Punjagutta, Hyderabad, Telanga-500082 Email id: smpharma25@gmail.com Last date for submission of claims: July 4, 2025 SJ WORLDTRADE: CRISIL Assigns B Rating to INR11.95cr Debt --------------------------------------------------------- Crisil Ratings has assigned 'Crisil B/Stable' rating to the long term bank facilities of SJ Worldtrade Private Limited (SJWPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Post Shipment Credit 2.05 Crisil B/Stable (Assigned) Pre Shipment Credit 11.95 Crisil B/Stable (Assigned) The rating reflects SJWPL's modest scale of operations, low operating margins due to trading nature of the business, working capital intensive operations and modest financial risk profile. These weaknesses are partially offset by extensive industry experience of the promoters in the fabric industry. Analytical Approach Crisil Ratings has evaluated the standalone business and financial risk profiles of SJWPL. Key Rating Drivers & Detailed Description Weaknesses: * Modest scale of operations: SJWPLs business profile is constrained by its scale of operations in the intensely competitive Traders industry. The revenue in FY24 declined to Rs.36.4 crore from Rs.56.7 crore in FY23 due to global demand scenario and shifting of borrowing facilities which partially hampered operations. Revenue in FY25 has increased to around Rs.65 crore. However, scale of operations continues to limit the operating flexibility. SJWPL faces significant customer concentration risks as the top 5 customers account for more than 90 per cent of its total sales. The high customer concentration makes the company's revenue growth and profitability dependent on its key customers' future growth plans. * Low operating margins due to trading nature of the business: The synthetic fabric trading industry requires lower initial investment and complexity of operations is modest. The same results in existence of innumerable entities, much smaller in size, leading to significant fragmentation and low operation margins in the industry. Operating margin has remained in the range of 2.1 to 3.8% during the last three fiscal ended FY25. Since majority of revenue comes from the international market, any sharp fluctuation in forex rates affects realizations and accrual. This exposes the operating margin to fluctuations in forex rates. Going forward, sustenance of moderate profitability will remain key rating monitorable. * Working capital intensive operations: Gross current assets were at 250-350 days over the three fiscals ended March 31, 2024. However, in fiscal 25 it is estimated to have been ~170 days.Its intensive working capital management is reflected in its gross current assets (GCA) of 328 days as on March 31, 2024. Its large working capital requirements arise from its high debtor. SJWPL is required to extend long credit period owing to nature of business. Working capital management is expected to remain intense, over the medium term. * Modest financial risk profile: SJWPL has modest financial profile marked by estimated gearing of 1.8 times and total outside liabilities to adj tangible networth (TOL/ANW) of 2.75 times for year ending on 31st March 2025. SJWPL's debt protection measures have also been at weak level in past due to high gearing and low accruals from the operations. The interest coverage and net cash accrual to total debt (NCATD) ratio are at 1.17 times and 0.01 times for fiscal 2025. SJWPL's debt protection measures are expected to remain at similar level over the medium term Strength: * Extensive industry experience of the promoters: The promoters have an experience of 40 years in the fabric industry. This has given them an understanding of the dynamics of the market, and enabled them to establish relationships with suppliers and customers. The same reflects in healthy trade relations with global customers and is expected to support the business risk over the medium term. Liquidity: Stretched Bank limit utilisation is moderate at below 90 percent for the past 12 months ended May 2025. Cash accrual are expected to be over INR0.17-0.30crore, against term debt obligation of INR0.19-0.29 crore over the medium term. In addition, USL of Rs. 25 lacs is there in form of support from promoters. Current ratio is moderate at 1.37 times on March 31, 2025. Outlook: Stable Crisil Ratings believes SJWPL will continue to benefit over the medium term from its longstanding relationships with principals and experience of the management to mitigate the inherent risk in trading business. Rating sensitivity factors Upward factors: * Sustained revenue growth while maintaining moderate margin leading to interest coverage of more than 1.3 times * Efficient working capital management and no major debt funded capex plans. Downward factors: * Significant decline in revenue or drop in operating margin leading to net cash accruals of less than Rs.20 lacs * Intense working capital management or large debt funded capex plans adversely impacting capital structure SJWPL, previously SJ Fabricss Private Limited, was incorporated in 2009 by the Jajodia family. SJWPL is engaged in trading and exporting of synthetic fabric, primarily to Bangladesh upon receipt or orders from UAE and Hong Kong. The fabric exported is primarily used in manufacturing of Salwar suits. It is promoted by Mr Nathmal Jajodia and Ms Puja Agarwal. SPECTRUM TOOL: CRISIL Lowers Long and Short Term Ratings to D ------------------------------------------------------------- Crisil Ratings has downgraded its ratings on the bank facilities of Spectrum Tool Engineers Pvt Ltd (STEPL) to 'Crisil D/Crisil D' from 'Crisil BB/Stable/Crisil A4+'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Rating - Crisil D (Downgraded from 'Crisil BB/Stable') Short Term Rating - Crisil D (Downgraded from 'Crisil A4+') The rating downgrade reflects the delay in debt servicing on account of weak liquidity. The company has not disclosed the delay in the no default statement it has provided. The ratings also reflect the modest scale of operations, large working capital requirement and moderately leveraged financial risk profile. These weaknesses are partially offset by the extensive experience of the promoters in the industry and diverse clientele. Analytical Approach Crisil Ratings has evaluated the standalone business and financial risk profiles of STEPL. Key Rating Drivers & Detailed Description Weaknesses: * Delay in debt servicing: STEPL has delayed the interest servicing and repayment of its term loan for May 2025, due to weak liquidity. * Modest scale of operations: Revenue is estimated to have been modest at INR80 crore for fiscal 2025. Despite increased orders from government entities, the revenue is constrained by the risks inherent in tender-based operations. However, with increased order execution, the scale of operations is expected to improve. * Large working capital requirement and moderately leveraged financial risk profile: Gross current assets (GCAs) are estimated at a sizeable 500 days as on March 31, 2025, due to increase in receivables and inventory. Improvement in the receivables collection and reduction of inventory are monitorable. The financial risk profile remains moderately leveraged, with estimated gearing of 1.62 times due to high working capital requirement as on March 31, 2025. Furthermore, the interest coverage and net cash accrual to adjusted debt ratios are estimated to have been healthy at 2.07 times and 0.08 time, respectively, in fiscal 2025. The financial risk profile is expected to remain leveraged due to large working capital requirement. Strength: * Extensive experience of the promoters and diverse clientele: The promoters' experience of over three decades in the moulding and die casting industry, in-depth understanding of the market dynamics and healthy relationships with customers will continue to support the business. STEPL caters to a diversified end-user base, including telecom, electrical, automotive, electronics and healthcare, in the private and government sectors. The diversified end-user base allows the company to withstand slowdown in an industry and achieve high growth. Liquidity: Poor Bank limit utilisation was high at 98.50% on average in the 12 months through April 2025. Expected annual net cash accrual of INR7-20 crore will sufficiently cover yearly term debt obligation of INR4-5 crore over the medium term. The current ratio was moderate at 1.47 times as on March 31, 2025. Rating sensitivity factors Upward factors * Track record of timely servicing of debt for at least three months * Significant improvement in liquidity STEPL was set up in 1990 as a proprietorship concern and was reconstituted as a private limited company in 2002. The company manufactures and exports tools and moulds, such as plastic components, precision machined components, aluminium die casting components, plastic injection moulding parts and mechanical products. It also manufactures LED lighting products. Its facility is in Bengaluru, Karnataka. Mr C S Venkatesh, Mr S Rajeshwai and Mr V Sudarshan are the promoters. SRUSTI AGRO: CARE Keeps C Debt Rating in Not Cooperating Category ----------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Srusti Agro Farms Private Limited (SAFPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.16 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale and key rating drivers CARE Ratings Limited (CareEdge Ratings) had, vide its press release dated June 4, 2024, placed the rating(s) of SAFPL under the 'issuer non-cooperating' category as SAFPL had failed to provide information for monitoring of the rating as agreed to in its Rating Agreement. SAFPL continues to be non-cooperative despite repeated requests for submission of information through e-mails dated April 20, 2025, April 30, 2025, May 10, 2025 among others. In line with the extant SEBI guidelines, CareEdge Ratings has reviewed the rating on the basis of the best available information which however, in CareEdge Ratings 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: Stable Incorporated in July 2016, Srusti Agro Farms Private Limited (SAFPL) was promoted by Mrs. Mamta Puhan and Mr. Nirakar Puhan among others. The company was promoted to initiate the business of poultry farming to sale eggs and birds. Currently, the company is setting up a poultry farm which includes three shades; the first shade will be used for farming of one day to 6-7 weeks chicks, the second shade will be used for farming chicks which are up to 12-13 weeks, and third shade will be used for layer birds where they fetch eggs. The total project cost is estimated to be INR8.98 crore which will be funding through term loan of INR6.50 crore and balance of INR2.48 crore from promoter's contribution. The financial closure for the debt portion of the project is already been tied-up and the company has already completed construction of two shades and started commercial operations from April 2019 of poultry farming operations. Till July 31, 2019, the company has spent around INR8.66 crore funded through term loan of INR6.18 crore and balance through promoter's contribution of INR2.48 crore. Since its inception, the company is earning revenue through agricultural business (i.e. mango plantation and pulses). The company has started partial commercial operation of its poultry business (main business) from April 2019 and the full fledge operation of the same is estimated to commence from September 2019. Currently, the company has 66,000 layer birds in its poultry farm. SWAMI SAMARTH: CARE Keeps C Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Shri Swami Samarth Construction (SSSC) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.03 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 1.00 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale and key rating drivers CARE Ratings Limited (CareEdge Ratings) had, vide its press release dated June 26, 2024, placed the rating(s) of SSSC under the 'issuer non-cooperating' category as SSSC had failed to provide information for monitoring of the rating as agreed to in its Rating Agreement. SSSC continues to be non-cooperative despite repeated requests for submission of information through e-mails dated May 12, 2025, May 22, 2025 and June 1, 2025 among others. In line with the extant SEBI guidelines, CareEdge Ratings has reviewed the rating on the basis of the best available information which however, in CareEdge Ratings' 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: Stale SSSC was established in 2006 as a proprietorship firm by Mrs. Smita Prakash Survase. SSSC is engaged in business of execution of civil projects under contract for various Government Departments. SSSC is a registered government contractor as Class-I-A with Public Works Department (PWD); Solapur, Class-I-A with Maharashtra Jeevan Pradhikaran (MJP) and Class-I-B with Maharashtra Water Conservation Corporation (MWCC), Aurangabad. SWIKRITI RENEWABLES: Insolvency Resolution Process Case Summary --------------------------------------------------------------- Debtor: Swikriti Renewables Private Limited C-7/1-3, Sector-10/Airoli Thane, Maharashtra India, 400708 Insolvency Commencement Date: June 13, 2025 Estimated date of closure of insolvency resolution process: December 9, 2025 (180 Days) Court: National Company Law Tribunal, Mumbai Bench Insolvency Professional: Mr. Girish Arvind Satav Flat No. 7, Jijai Sankul, Satav Chowk, Tandulwadi Road, Baramati Pune-413102 Email: satav.girish@gmail.com Email: cirp.swikriti@gmail.com Last date for submission of claims: July 6, 2025 VARUN JAL: CRISIL Lowers Rating on INR34.6cr Term Loan to D ----------------------------------------------------------- Due to inadequate information, Crisil Ratings, in line with SEBI guidelines, had migrated the rating of Varun Jal Vidyut Shakti Pvt Ltd (VJVSPL) to 'Crisil BB/Stable Issuer Not Cooperating'. However, the management has subsequently started sharing requisite information, necessary for carrying out comprehensive review of the rating. Consequently, Crisil Ratings is downgraded the rating on bank facilities of VJVSPL to 'Crisil D' from 'Crisil BB/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 34.6 Crisil D (Downgraded from 'Crisil BB/Stable ISSUER NOT COOPERATING') The downgrade in rating reflects the delays in interest servicing of term loan from April 2025 onwards. The account has subsequently been classified as SMA. The ratings continue to reflect VJVSPL's susceptibility to hydrology risks, exposure to risks related to the stabilization of the project. These weaknesses are partially offset by its extensive industry experience of the promoters and the expected comfortable plant load factor (PLF) and DSCR. Analytical Approach The rating of VJVSPL has been arrived on a standalone basis. The unsecured loans of INR9.73 crore has been treated as debt. Key Rating Drivers & Detailed Description Weaknesses: * Susceptibility to hydrology risks: Despite a detailed hydrology analysis to mitigate future risk, power generation will continue to depend on availability of adequate water flow. The water level in the river depends on the annual yield of rainfall from south-west monsoon (June-November). The key risk is 'spread of rainfall' across the monsoon: the more the even inflows into the river, the longer the peak power generation periods and vice versa. However, this risk is mitigated by catchment areas that are well-designed to ensure the plant operates, even at a lower PLF. * Exposure to risks related to stabilization of the project: The company was scheduled to commence its project in January 2025, which has now started in April 2025. The road leading to the plant was destroyed due to heavy rainfall last year, thereby making it inaccessible for nearly 5 months. Successful stabilisation of operations at the new unit will remain a key rating sensitivity factor. Nonetheless, the promoters' experience and involvement of industry experts mitigate this risk to quite an extent. The project is partly funded via debt of INR34.6 crore, which has been partially disbursed. The promoters' individual networth further supports liquidity. The company also faces low demand risk, as it has a PPA with HPSEB, for 40 years. Strengths: * Extensive experience of the promoters: Longstanding presence in the independent power producers and energy traders' segment has enabled the promoters to develop a strong understanding of market dynamics and establish healthy relationships with suppliers and customers. * Comfortable expected PLF, moderate DSCR coupled with escrow mechanism: The PLF is expected to be comfortable, at over 50% over the medium term, resulting in DSCR likely being over 1.5 times over the repayment tenor. Also, an escrow mechanism ensures priority of term loan repayment. The interest payments on the term loan have started and principal payments will start from January 2026 onwards. Liquidity: Poor There has been delay in servicing of interest of term loans, wherein the payment has not been made from April 2025 onwards, owing to delay in receipt of payment from the government. The promoters are likely to extend support in the form of equity and unsecured loans to meet the working capital requirement and debt obligations. Rating sensitivity factors Upward factors * Track record of timely debt servicing for at least 90 days * Successful ramp-up of operations of the project, with PLFs higher than 45% on a sustained basis * Signing of PPAs with better price per unit VJVSPL was incorporated in 2005 and is promoted by Mr Arun Kumar and Mr Varun Pandit. The company is currently setting up a 5 MW hydro power plant in Himachal Pradesh. VASUGAN MEDICAL: CRISIL Lowers Rating on INR25.64cr Loan to B ------------------------------------------------------------- Crisil Ratings has revised the rating on bank facilities of Vasugan Medical Specialities Private Limited (VMSPL) to 'Crisil B/Stable Issuer not cooperating' from 'Crisil BB+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4 Crisil B/Stable (ISSUER NOT COOPERATING; Revised from 'Crisil BB+/Stable ISSUER NOT COOPERATING') Term Loan 25.64 Crisil B/Stable (ISSUER NOT COOPERATING; Revised from 'Crisil BB+/Stable ISSUER NOT COOPERATING') Working Capital 2.94 Crisil B/Stable (ISSUER NOT Term Loan COOPERATING; Revised from 'Crisil BB+/Stable ISSUER NOT COOPERATING') Working Capital 3.5 Crisil B/Stable (ISSUER NOT Term Loan COOPERATING; Revised from 'Crisil BB+/Stable ISSUER NOT COOPERATING') Crisil Ratings has been consistently following up with VMSPL for obtaining information through letter and email dated May 2, 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 VMSPL, which restricts Crisil Ratings' ability to take a forward looking view on the entity's credit quality. Crisil Ratings believes that rating action on VMSPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the rating on bank facilities of VMSPL revised to 'Crisil B/Stable Issuer not cooperating' from 'Crisil BB+/Stable Issuer not cooperating'. Incorporated in 2006 and promoted by Dr V Satyanarayana and Dr Surya Devara Sridhar, VMSPL commenced operations in April 2008. It manages a 150-bed multispeciality tertiary care hospital, Indus Hospital, in Vishakhapatnam. VINKEM LABS: Liquidation Process Case Summary --------------------------------------------- Debtor: VINKEM LABS LIMITED No. 29, Shanthi Colony, Anna Nagar, Chennai - 600 040 Liquidation Commencement Date: June 12, 2025 Court: National Company Law Tribunal, Chennai Bench-I Liquidator: Rajendran Shanmugam 2nd Floor, Hari Krupa, 71/1, Mc Nicholas Road, Chetpet, Chennai - 600 031 Email: cs.srajendran.associates@gmail.com Rajendran & Associates 2nd Floor, Hari Krupa, 71/1, Mc Nicholas Road, (off Poonamallee High Road) Chetpet, Chennai - 600 031 Email: Liq.vinkemlabs@gmail.com Last date for submission of claims: July 16, 2025 VOLT-AGE INFRA: CARE Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CARE Ratings said the ratings for the bank facilities of Volt-Age Infra Private Limited (VIPL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 9.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale and key rating drivers CARE Ratings Limited (CareEdge Ratings) had, vide its press release dated June 26, 2024, placed the rating(s) of VIPL under the 'issuer non-cooperating' category as VIPL had failed to provide information for monitoring of the rating as agreed to in its Rating Agreement. VIPL continues to be non-cooperative despite repeated requests for submission of information through e-mails dated May 12, 2025, May 22, 2025 and June 01, 2025 among others. In line with the extant SEBI guidelines, CareEdge Ratings has reviewed the rating on the basis of the best available information which however, in CareEdge Ratings' 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 VIPL is engaged in design, supply, erection, testing and commissioning of E.H.V. (Extra High Voltage), Turnkey outdoor substation projects, hydropower projects, switchyard station, power transmission lines and industrial lines, testing of electrical equipment's, live line/hot line and offline maintenance on an Engineering, Procurement and Construction (EPC) basis. The company was originally established as Voltage Infra & Power Projects Pvt. Ltd. in May 2003. Later, the name of the company was changed to Voltage Infra Pvt. Ltd w.e.f. Jan. 12, 2005. The company started its operation since 2005-06. The firm undertakes projects on tender basis for various customers including government, semi -government and private industrial entities. ================= I N D O N E S I A ================= PILAR SINERGI: Gets USD7.15MM Loan From Jasa Marga -------------------------------------------------- The Jakarta Post reports that state-owned toll road operator PT Jasa Marga has injected IDR116.49 billion (US$7.15 million) into PT Pilar Sinergi BUMN Indonesia (PSBI) through a shareholder loan to improve the company's cash flow. PSBI is a consortium of state-owned enterprises (SOEs) involved in the operation of the Whoosh high-speed railway. The firm owns 60 percent of Whoosh operator PT Kereta Cepat Indonesia China (KCIC), while the remaining 40 percent is held by a consortium of Chinese state-owned firms. The Jakarta Post, citing Jasa Marga's disclosure to the Indonesia Stock Exchange (IDX) on July 2, says the transaction was completed on June 30. "The transaction is conducted to fulfill the required cash deficiency support of KCIC for 2023-2024 via PSBI," reads the disclosure statement published on July 2. ========= J A P A N ========= NISSAN MOTOR: S&P Puts 'BB' ICR to USD and EUR Sr. Unsec. Notes --------------------------------------------------------------- S&P Global Ratings assigned its 'BB' issue credit rating to Nissan Motor Co. Ltd.'s (BB/Negative/B) three proposed U.S.-dollar denominated senior unsecured notes and two proposed euro-denominated senior unsecured notes. The notes differ in maturities. S&P said, "The issue rating on the proposed notes is equal to our long-term issuer credit rating on the company. This reflects our view that the ratio of more senior debt (secured debt and subsidiary debt) to the company's debt (excluding its sales finance business) is small and does not increase the subordination of the proposed foreign debt. "The company plans to use the proceeds from the issuance to redeem bonds maturing in the second half of fiscal 2025 (ending March 31, 2026). We believe that the company can maintain adequate liquidity as the issuance of these notes will enable it to prepare for redemption of bonds maturing in the second half of fiscal 2025 ($1.5 billion denominated in U.S. dollars, EUR750 million in euros, and JPY210 billion in yen)." S&P's issuer credit rating on Nissan Motor is based on our view that: -- As a global automaker, the company has a business foundation that maintains annual sales of more than 3 million vehicles; -- Free operating cash flow (FOCF) in the automotive sector, which was significantly negative in fiscal 2024, will likely trend positive due to extensive cost reduction and profit improvement measures through business restructuring; and -- The company maintains a sound financial base, with net cash in the automotive division exceeding JPY1 trillion. S&P said, "The negative outlook on our long-term issuer rating on the company reflects our view that the challenging business environment will continue to put pressure on its creditworthiness. We believe there is heightened risk in the company's path to restoring profitability and free cash flow amid its restructuring process. Specifically, we believe its performance and FOCF will remain depressed due to a number of factors." These include the impact of higher U.S. tariffs, increased competition and sluggish sales in the Chinese market, and the investment burden of launching competitive products including electrification. =============== M A L A Y S I A =============== SAPURA ENERGY: To Hold Critical EGM on July 30 ---------------------------------------------- Business Today reports that Sapura Energy Berhad (SEB) is set to convene an Extraordinary General Meeting (EGM) on July 30, 2025, where shareholders will vote on its comprehensive Proposed Regularisation Plan. This crucial plan aims to overhaul the Company's capital structure, address accumulated losses, restructure debt, and secure fresh funding, ultimately paving the way for SEB to exit its Practice Note 17 (PN17) classification and restore its financial health for sustainable long-term value creation. Business Today relates that in a circular distributed to shareholders, SEB outlined four key proposals that form the core of the PRP: * Proposed Capital Reconstruction: This involves a 99.99 percent capital reduction to reduce accumulated losses and a 20-to-1 share consolidation to enhance share trading price and reduce volatility on Bursa Malaysia. Both exercises are designed to improve the Company's capital structure without impacting existing shareholders' percentage holdings. * Proposed Debt Restructuring Exercise: This ambitious plan seeks to reduce SEB's total borrowings from approximately RM10.8 billion to about RM5.6 billion. The restructuring is projected to decrease annual interest costs by more than RM500 million, a significant reduction of about 60 percent, which is expected to greatly improve SEB's path to profitability. * Proposed Fund-Raising: Malaysia Development Holding Sdn. Bhd. (MDH) will subscribe up to RM1.1 billion in redeemable convertible loan stocks (RCLS). These funds are specifically earmarked to settle outstanding payments to vendors within the Malaysian oil and gas ecosystem. * Proposed Exemption: This proposal seeks to provide relief to MDH and its Persons-Acting-in-Concert (PACs) from the obligation to undertake a Mandatory Offer, should there be a full conversion of the RCLS. According to Business Today, SEB Group Chief Executive Officer, Muhammad Zamri Jusoh, acknowledged the complexity of the PRP. "We recognise the complexity of SEB's Proposed Regularisation Plan and we are committed to helping every shareholder fully understand the details so they can make an informed decision," he stated, Business Today relays. To facilitate this, the Company will establish a dedicated Shareholders' Help Desk, available from July 15, 2025, until July 29, 2025, between 9:30 AM and 4:00 PM at +603-6415 9900. About Sapura Energy Sapura Energy Berhad, formerly SapuraKencana Petroleum Berhad, is engaged in investment holding and the provision of management services to its subsidiaries. The Company's segments include Engineering and Construction (E&C), Drilling, Energy and Corporate. Sapura Energy Bhd announced on May 31, 2022, that it has been classified as a PN17 listed issuer due to going concerns on its shareholders' equity position less than 50% of its share capital. Sapura Energy has become an affected listed issuer under PN17 on the basis that its shareholders' equity position of MYR85 million as at Jan. 31, 2022 was less than 50% of its share capital of MYR10.9 billion. ===================== N E W Z E A L A N D ===================== BUMBLEBEE TEA: Court to Hear Wind-Up Petition on July 14 -------------------------------------------------------- A petition to wind up the operations of Bumblebee Tea Limited will be heard before the High Court at Hamilton on July 14, 2025, at 10:45 a.m. The Commissioner of Inland Revenue filed the petition against the company on May 19, 2025. The Petitioner's solicitor is: Christina Anne Hunt Inland Revenue, Legal Services 21 Home Straight (PO Box 432) Hamilton BUTLERS CHOCOLATE: Stores Close as Company Goes Into Liquidation ---------------------------------------------------------------- Stuff.co.nz reports that Butlers Chocolate Cafe stores in Aotearoa have closed down after the company was put into liquidation. According to Stuff, the chocolate company operating under Chocolate Cafes (New Zealand) Limited was put into liquidation on July 4, citing a decline in sales and increase in costs. The Queensgate store will remain open for the next week to sell down chocolate stock. The other four stores are now closed. BDO liquidators Jessica Kellow and Iain Shephard were appointed, Stuff discloses. "The business has for the past 18 years, operated chocolate cafes across Wellington and Auckland," Stuff quotes Ms. Kellow as saying in a statement. "In recent times the business has suffered from increased raw material costs and declining sales," she said. The Butlers Chocolate Cafe company has relied upon the financial support of its shareholders over the past year. "Given the economic outlook and a desire from Butlers Ireland to move away from licensed arrangements, the shareholders resolved to appoint liquidators," Ms. Kellow said. Stuff adds that Ms. Kellow said the liquidators report will be issued later this week. Butlers Chocolates originated in Dublin, Ireland in 1932, founded by Marion Butler, according to its website. The brand was registered in Aotearoa in 2006. EAST IMPERIAL: Declared Insolvent; Unable to Pay Over NZD7 Million ------------------------------------------------------------------ NZ Herald reports that the liquidation of beverage manufacturer East Imperial has been completed with the business declared insolvent and unable to pay debts worth over NZD7 million. It has now been removed from the New Zealand Companies Office. According to NZ Herald, liquidators recovered NZD370,646 from assets, but many creditors remain unpaid. One major creditor is the New Zealand Inland Revenue Department (IRD), which is owed NZD160,000, NZ Herald discloses. Auckland-based East Imperial, which was founded in 2012, focused on producing premium mixers. JK CONCRETE: Court to Hear Wind-Up Petition on July 14 ------------------------------------------------------ A petition to wind up the operations of JK Concrete Services Limited will be heard before the High Court at Hamilton on July 14, 2025, at 10:45 a.m. The Commissioner of Inland Revenue filed the petition against the company on May 28, 2025. The Petitioner's solicitor is: Christina Anne Hunt Inland Revenue, Legal Services 21 Home Straight (PO Box 432) Hamilton L3 CTS: Creditors' Proofs of Debt Due on Aug. 22 ------------------------------------------------ Creditors of L3 CTS Airline Academy (NZ) Limited are required to file their proofs of debt by Aug. 22, 2025, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 26, 2025. The company's liquidators are: Rees Logan George Bannerman BDO Auckland Level 4 BDO Centre 4 Graham Street Auckland 1010 LEDA GROUP: Creditors' Proofs of Debt Due on July 25 ---------------------------------------------------- Creditors of Leda Group Limited are required to file their proofs of debt by July 25, 2025, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 26, 2025. The company's liquidators are: Gareth Russel Hoole Raymond Paul Cox Ecovis KGA Limited, Chartered Accountants Level 2, 5–7 Kingdon Street Newmarket MERCK LIMITED: Creditors' Proofs of Debt Due on July 16 ------------------------------------------------------- Creditors of Merck Limited are required to file their proofs of debt by July 16, 2025, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 30, 2025. The company's liquidators are: Stephen Robert White Craig Alexander Sanson C/- PricewaterhouseCoopers 15 Customs Street West Private Bag 92162 Auckland 1010 ================= S I N G A P O R E ================= ALLIANZ DIGITAL: Commences Wind-Up Proceedings ---------------------------------------------- Members of Allianz Digital Services Pte. Ltd. on June 24, 2025, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Mr. Tan Eng Soon 7500A Beach Road #05-303/304 The Plaza Singapore 199591 AUREUS CONCEPT: Court to Hear Wind-Up Petition on July 11 --------------------------------------------------------- A petition to wind up the operations of Aureus Concept Pte. Ltd. will be heard before the High Court of Singapore on July 11, 2025, at 10:00 a.m. Maybank Singapore Limited filed the petition against the company on June 23, 2025. The Petitioner's solicitors are: Shook Lin & Bok LLP 1 Robinson Road #18-00, AIA Tower Singapore 048542 BRAEBURN WHISKY: KordaMentha Appointed as Liquidators ----------------------------------------------------- Mr. Cameron Lindsay Duncan and Mr. David Dong-Won Kim of KordaMentha on June 25, 2025, were appointed as liquidators of Braeburn Whisky Singapore Pte Ltd and Braeburn Whisky Pte Ltd. The liquidators may be reached at: Mr. Cameron Lindsay Duncan Mr. David Dong-Won Kim KordaMentha Pte. Ltd. 50 Raffles Place #25-01 Singapore Land Tower Singapore 048623 CASK 88: KordaMentha Appointed as Liquidators --------------------------------------------- Mr. Cameron Lindsay Duncan and Mr. David Dong-Won Kim of KordaMentha on June 25, 2025, were appointed as liquidators of Cask 88 Trading Pte. Ltd. The liquidators may be reached at: Mr. Cameron Lindsay Duncan Mr. David Dong-Won Kim KordaMentha Pte. Ltd. 50 Raffles Place #25-01 Singapore Land Tower Singapore 048623 CDL HOSPITALITY: Fitch Affirms Then Withdraws 'BB+' Long-term IDR ----------------------------------------------------------------- Fitch Ratings has affirmed Singapore-based CDL Hospitality Real Estate Investment Trust's (CDL HREIT) Long-Term Issuer Default Rating (IDR) at 'BB+' with a Negative Outlook, and has simultaneously withdrawn the rating. The Negative Outlook reflects its expectation that EBITDA net leverage could remain higher than 8.5x in the next few years, based on recent operating weakness in several markets, exacerbated by substantially debt-funded acquisitions. The acquisitions support CDL HREIT's business profile by propping up rent from fixed- and long-stay contracts, but do not offset its high leverage. The trust may consider options to deleverage following the acquisitions to support its growth ambitions. The rating is supported by cash flow from CDL HREIT's diversified portfolio of hotels and long-stay assets, which provide both lease- and non-lease revenue. The trust has also demonstrated funding access and liquidity, even during the Covid-19 pandemic-led lodging-sector downturn. Fitch forecasts fixed- and long-stay rent to contribute around 25% of revenue in the next few years, balancing the cash flow seasonality of most of the trust's hotels. Fitch has chosen to withdraw the rating for commercial reasons and will no longer provide ratings and analytical coverage on it. Key Rating Drivers Tight Leverage Headroom: Fitch expects EBITDA net leverage to fall from the 2024 level, but remain high through to 2027, at around 8.5x-9.0x, as some of the trust's assets recover from operating weakness in its key markets of the Maldives, Singapore and New Zealand, which accounted for 37% of revenue in 2024. Fitch also assumes that the trust will fund 60% of its SGD475 million Moxy Hotel acquisition in 2027 with equity, aiming to maintain its regulatory gearing (debt/assets) at around 40%-45%. Leverage reached 10.7x in 2024, from 8.7x in 2023, due to weak demand in some Singapore assets, rising competition in the Maldives and temporarily lower occupancy during refurbishments in New Zealand. This was compounded by its debt-funded acquisitions in 4Q24. Fitch expects leverage to trend down to 8.5x in 2026, with a full-year cash flow contribution from acquired assets and a degree of business recovery. However, downside risks remain, including potentially weaker performance and additional debt-funded acquisitions. Lower Fixed-and Long-Stay Revenue: Fitch expects fixed- and long-stay rent to remain lower than pre-pandemic levels in the medium term, even after the recent acquisition of Benson Yard, a purpose-built student accommodation in the UK. Benson Yard will add to the trust's existing fixed- and long-stay rent of over SGD70 million from its hotels, Claymore Connect shopping mall and The Castings in Manchester. Fitch forecasts this higher-visibility revenue to stabilise at around 25% of total revenue by 2027, although lower than 35% in 2018-2019. The reduction came amid pandemic-led lease renegotiations and the sale of hotels with higher fixed revenue. Consequently, CDL HREIT's credit profile has moved closer to that of a pure-play hotel operator, which carries higher business risk. Fitch believes the Moxy Hotel, to be purchased in 2027, may operate under a hotel management contract with no minimum or fixed rent, although the trust is yet to finalise the nature of the contracts. Long-Stay Asset Expansion: Fitch expects the trust to opportunistically expand in long-stay assets, such as The Castings and Benson Yard, over the medium term, in line with its investment strategy. Fitch forecasts The Castings to generate revenue of about SGD9 million in 2025, rising to about SGD11 million from 2026 and then remaining stable. Demand should stem from young professionals and students, with the majority renting for 12-month periods. Benson Yard is likely to generate annual revenue of about SGD6 million in 2025-2027, with rental duration of 44 or 51 weeks. Manageable Interest-Rate Risk: Fitch projects borrowing costs will start to decline in 2025, from a 2024 peak, based on its assumption of falling market rates. Fitch forecasts the US Federal Reserve to ease its benchmark rate by 25bp in 2025 and 75bp in 2026. Consequently, CDL HREIT's EBITDA interest coverage will stay above 2.5x until 2028. Furthermore, Fitch anticipates that revenue from fixed rent and long-stay assets will continue to cover the trust's interest expenses in the medium term. Rating Based on Consolidated Profile: CDL HREIT is part of a stapled group, CDL Hospitality Trusts, which comprises CDL HREIT and CDL Hospitality Business Trust (HBT). Under the stapling deed, each stapled security consists of one unit of CDL HREIT and one unit of HBT and is treated as a single instrument. CDL HREIT's rating is based on the consolidated profile of CDL HREIT and HBT, given its view of strong operational and strategic linkages between the two, as provided for in the stapling deed. Peer Analysis CDL HREIT's IDR is comparable with that of peers, such as CapitaLand Ascott Real Estate Investment Trust (BBB/Stable), Whitbread PLC (BBB/Negative), Host Hotels & Resorts, Inc. (HST, BBB/Stable) and Yuexiu Real Estate Investment Trust (YXR, BBB-/Negative). Ascott REIT is rated two notches above CDL HREIT, as it has a larger and more geographically diverse property portfolio, with 102 properties across 16 countries. It also has a higher proportion of income from fixed rent and long-stay properties and longer average-stay tenancies than hotels, as it caters mainly to the serviced-residence sub-segment. Fitch expects Ascott REIT's gross profit from master leases and long-stay properties to remain at 50%-60% over the next few years, which provides stronger cash flow visibility than at CDL HREIT. Ascott REIT also benefits from solid access to capital through economic cycles, partly due its strong sponsor, CapitaLand Investment, a subsidiary of the Singapore government's investment fund, Temasek Holdings Private Limited. The large operating scale of Whitbread and HST, with EBITDAR of about USD1 billion, combined with conservative net leverage of around 2.5x-3.5x, supports higher ratings relative to CDL HREIT, even though pure-play hotel operators are exposed to higher fixed costs and almost overnight repricing of revenue. CDL HREIT has a proportion of fixed rent that limits cash flow declines during sector downturns, such as during the pandemic, where the trust maintained positive EBITDA while most global lodging companies reported losses; however, its business profile has since weakened, with a fall in the proportion of fixed rent in its revenue. YXR's Standalone Credit Profile of 'bb+' is at the same level as CDL HREIT's IDR. YXR's EBITDA exceeds SGD250 million and it has an EBITDA margin of over 65%, against CDL HREIT's EBITDA of SGD120 million and EBITDA margin of below 50%. In addition, over 80% of YXR's revenue is from fixed rental assets, compared with 24% at CDL HREIT, limiting risk from rental repricing. However, YXR has higher leverage, at over 12x, and weaker interest coverage of below 2x, due to a slow EBITDA recovery, especially in the office segment. This counterbalances its larger scale, longer revenue visibility and higher margin. Key Assumptions Fitch's Key Assumptions Within the Rating Case for CDL HREIT: - Annual revenue of around SGD285 million in 2025, increasing by a low single digit in 2026; - EBITDA margin improving to around 50% in the next 12-18 months; - Moxy Hotel acquisition cost of SGSD475 million financed through a 40:60 debt-equity split in 2027; - Annual capex averaging SGD25 million over 2025-2027. RATING SENSITIVITIES No longer relevant, as the ratings have been withdrawn. Liquidity and Debt Structure CDL HREIT had SGD76 million of available cash on hand and SGD121.2 million in undrawn committed revolving credit facilities as of end-2024. This will not fully cover the SGD461 million in debt maturities in 2025, but the trust has a sound record of access to domestic banks to support timely refinancing of its debt maturities and liquidity, even during the pandemic-led downturn. Contingent liquidity is further supported by the trust's almost entirely unencumbered asset portfolio. Issuer Profile CDL HREIT, via its stapled group, has a portfolio comprising 22 properties, including a total of 4,924 hotel rooms, 352 build-to-rent apartment units, 404 purpose-build student accommodation beds and a retail mall, collectively valued at SGD3.5 billion as of 31 December 2024. 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. Following the withdrawal of CDL HREIT's ratings, Fitch will no longer provide the associated ESG Relevance Scores. Entity/Debt Rating Prior ----------- ------ ----- CDL Hospitality Real Estate Investment Trust LT IDR BB+ Affirmed BB+ LT IDR WD Withdrawn JETTY VENTURES: Creditors' Proofs of Debt Due on July 31 -------------------------------------------------------- Creditors of Jetty Ventures India Investments Pte. Ltd. are required to file their proofs of debt by July 31, 2025, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 23, 2025. The company's liquidator is: Rangarajan Narayanamohan c/o Natarajan & Swaminathan LLP 1, North Bridge Road #19-04/05, High Street Centre Singapore 179094 =============== T H A I L A N D =============== MUANGTHAI CAPITAL: S&P Rates USD-Denominated Sr. Unsec. Notes 'BB-' ------------------------------------------------------------------- S&P Global Ratings assigned its 'BB-' foreign currency long-term issue rating to U.S. dollar-denominated senior unsecured notes that Muangthai Capital Public Co. Ltd. (MTC) proposes to issue. S&P said, "The issuance is a drawdown from MTC's US$3 billion medium-term notes program, which we rate 'BB-'. The rating on the notes is subject to our review of the final issuance documentation. We equalize the rating on the notes with the long-term issuer credit rating on MTC (BB-/Stable/--)." The notes will constitute direct, unconditional, unsubordinated, and unsecured obligations of MTC. They will rank equally without any preference among themselves and equally with all other outstanding unsecured and unsubordinated obligations of the issuer. The terms of the notes require MTC to maintain a risk-adjusted capital ratio (as defined in the terms and conditions of the bond) of at least 15% and a net stage III asset ratio of 7% or less. They also contain a pledge by the Thailand-based financial institution that it will not create a security interest on its businesses or assets as long as the notes remain outstanding. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. *** End of Transmission ***