MIRA INFORM REPORT

 

 

Report Date :

08.07.2014

 

IDENTIFICATION DETAILS

           

Name :

NEW WORLD RECYCLE S.A.

 

 

Registered Office :

Tres Rios Del Puente De La Entrada A Santiago Del Monte, 200 Metros Sur, San Diego, La Unión, Cártago state

 

 

Country :

Costa Rica 

 

 

Year of Establishments :

2013

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

engaged in the recycling of non-metal waste like used plastic bottles.

 

 

No of Employees :

Not Available 

 

RATING & COMMENTS

 

MIRA’s Rating :

NB

 

RATING

STATUS

PROPOSED CREDIT LINE

--

NB

                                       New Business

--

 

Status :

New Company

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Costa Rica 

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 


 

Costa Rica ECONOMIC OVERVIEW

 

Prior to the global economic crisis, Costa Rica enjoyed stable economic growth. The economy contracted 1.3% in 2009 but resumed growth at about 4.5% per year in 2010-12. While the traditional agricultural exports of bananas, coffee, sugar, and beef are still the backbone of commodity export trade, a variety of industrial and specialized agricultural products have broadened export trade in recent years. High value-added goods and services, including microchips, have further bolstered exports. Tourism continues to bring in foreign exchange, as Costa Rica's impressive biodiversity makes it a key destination for ecotourism. Foreign investors remain attracted by the country's political stability and relatively high education levels, as well as the incentives offered in the free-trade zones; and Costa Rica has attracted one of the highest levels of foreign direct investment per capita in Latin America. However, many business impediments remain, such as high levels of bureaucracy, legal uncertainty due to overlapping and at times conflicting responsibilities between agencies, difficulty of enforcing contracts, and weak investor protection. Poverty has remained around 20-25% for nearly 20 years, and the strong social safety net that had been put into place by the government has eroded due to increased financial constraints on government expenditures. Unlike the rest of Central America, Costa Rica is not highly dependent on remittances as they only represent about 2% of GDP. Immigration from Nicaragua has increasingly become a concern for the government. The estimated 300,000-500,000 Nicaraguans in Costa Rica legally and illegally are an important source of mostly unskilled labor but also place heavy demands on the social welfare system. The US-Central American-Dominican Republic Free Trade Agreement (CAFTA-DR) entered into force on 1 January 2009 after significant delays within the Costa Rican legislature. CAFTA-DR has increased foreign direct investment in key sectors of the economy, including the insurance and telecommunications sectors recently opened to private investors. President CHINCHILLA was not able to gain legislative approval for fiscal reform, her top priority, though she continued to pursue fiscal reform in 2012. President CHINCHILLA and the PLN were successful in passing a tax on corporations to fund an increase for security services.

 

Source : CIA

 


           

IDENTIFICATION

 

CORRECT COMPANY NAME

NEW WORLD RECYCLE S.A.

TAXPAYER REGISTRATION

CJ 3101606769

MAIN ADDRESS

Tres Rios del Puente de la Entrada a Santiago del Monte, 200 metros Sur, San Diego, La Unión

DEPT/PROV/REGION/STATE

Cártago

COUNTRY

COSTA RICA

TELEPHONE

(506) 25181285 - 2518192

 

COMMENTS

 

The Taxpayer Registration Number (NIT) included in your request belongs to NEW  WORLD RECYCLE S.A.
 
We could not determine the relation between "BAGF AMERICAN" and NEW  WORLD RECYCLE S.A.
 
We called the above telephone numbers at different times but nobody answered.
 
Press releases state that this company's OPERATIONS WERE officially SHUT DOWN as from July this year.

 

EXECUTIVE SUMMARY

 

Date of foundation

2013

Chief Executive

ZAMORA, FEDERICO

Payments policy

Without rating (No payment experience traced)

Credit (**)

UNDETERMINED RISK.(Insufficient or Non existent information).

Number of times that this company was required: 2

 

 

LEGAL STRUCTURE

 

LEGAL STATUS

Joint-Stock Company

 

 

DATE OF INCORPORATION

2013

 

 

NOTARY OFFICE

 

DURATION

99 years

CURRENT EXCHANGE RATE (US$)

C/.532.36 Colones per 1USD

 

 

 

DIRECTORS

 

EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME

TITLE

PONCE, ROBERTO

Director

ZAMORA, FEDERICO

General Manager

 

 

 

 

WHO IS WHO?

 

PONCE, ROBERTO

TITLE

Director

BACKGROUND INFORMATION

Director of Total Pet and New World Recycle

 

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

 

 

 

COMPANY NAME

COUNTRY

STA. - TAX REG.

RELATION

ACTIVITY

 

 

TOTALPET S.A.

COSTA RICA

(BD) 3101284010

Related

CHEMICAL PRODUCTS - PLASTICS

 

 

 

BUSINESS

 

Main activity

Subject Company was engaged in the recycling of non metal waste like used plastic bottles.
 
For its activities, Subject made an investment of US$ 14,000,000.= for a processing capacity of 9,000 tons/year of valuable waste equivalent to 300 million bottles approximately.

 

 

LOCATION

OTHER PREMISES

The Registered Office operated at the main address.

 

GENERAL INFORMATION

 

We are sending this general report since we could not have access to direct information on this company. The Taxpayer Registration Number (NIT) shown in your request, belongs to NEW WORLD RECYCLE S.A. We made the report on this company whose registered office was located at the address in the heading. We tried to access direct information on this company, without positive results. We have called at different times and days to arrange an interview but the telephone rings and nobody replies. In the address in your request there is a plant that is closed. We could not speak with anybody. We could not establish the link between "BAGF AMERICAN" and NEW WORLD RECYCLE S.A or with its related company. We unsuccessfully tried to contact Roberto Ponce and Federico Zamora. We consulted the Chamber of Industries from Costa Rica, where we were told that NEW WORLD RECYCLE S.A. is a member of the Chamber and its operations have been shut down and it is going through a Financial Restructuring process, refusing to provide further information. Continuing with our investigation, we could find out that a financial and operational restructuring that would involve the dismissal of some of its personnel was started by New World Recycle on May 1, 2014. This company is also made up of Total Pet Costa Rica, a company that manufactures PET plastic bottles and has a recycling plant in Cartago. The plant alone hires about 50 persons and is unique in the country. Roberto Ponce, director of TotalPet and New World Recycle, informed in an interview that they are trying to correct the current situation of the business and to maintain bottle recycling operations. The cost of the plant exceeded $13,5 millions and was financed by Banco Nacional and CoreCor. It started operating in August 2013. The goal was that it will process about 300 million PET plastic bottles per year, in its maximum production point. Ponce did neither pointed out how many employees will be dismissed nor specified the reason for the restructuring process since they are still negotiating with creditors, clients and suppliers. Therefore there is no final information. On the other hand, Federico Zamora, General Manager and spokesman of the companies stated: "We are committed to recycling projects and environmental protection and we try to generate quality jobs in the country; however, the financial mismanagement of companies by their previous administrators makes us replan the business in a responsible and transparent manner. Both companies are being restructured according to the law". To date, a team of new managers is implementing a new strategic plan in order to achieve the necessary investment for relaunching the recycling operations and commissioning the plant of New World Recycle S.A. as soon as possible. Likewise, they are working out investment or alliance alternatives for the operation of TotalPET S.A. "As for New World Recycle S.A, seven officials were hired again and they will be in charge of the future restart of the operation in the recycling companies, therefore we reject that we the environment is being affected. We will do our best to correct since like any other project to be sustainable it must be profitable", Zamora added, who is an expert in the plastic industry and was hired to start the restructuring. In information from our files on the related company, TOTALPET S.A., we could find out that the operations of New World Recycle and TotalPet, which are companies especializing in recycling and manufacture of plastic bottles, HAVE BEEN SHUT DOWN since April 30 but it was officially informed on June 3rd. TotalPet was engaged in the manufacture of plastic bottles, while World Recycle was started a year ago to recycle used bottles and transform them into RPET resin. Ernesto Moreno, founder of TotalPet, said to the news site ameliarueda.com, that the reasons for the closing were due to the lack of capital contribution from the partners. As informed by this website, employees who had the longest time working there were informed that they would only receive a payment of 20% of their severance pay and a negotiation on the remaining 80.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.95

UK Pound

1

Rs.102.78

Euro

1

Rs.81.39

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

MNL

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

--

NB

                                       New Business

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.