Cox & Kings hits fresh low after fourth default in three weeks

The firm said it has also failed to pay the interest of over Rs 41 lakh on secured redeemable non-convertible debentures worth Rs 50 crore in timely manner

Shares of Cox & Kings were locked in lower circuit of 5 per cent at Rs 19, also its new low on the BSE on Wednesday, after the company defaulted on its repayment obligations on commercial papers worth Rs 45 crore on Tuesday. This is Cox & Kings' fourth default in three weeks. 

In a filing to the BSE, the travels and tour operator said it has also failed to pay the interest of over Rs 41 lakh on secured redeemable non-convertible debentures worth Rs 50 crore in timely manner. These NCDs carried a tenure of 24 months at a coupon of 10 percent per annum payable per month, it said.

Cox & Kings said it was making all efforts to make the interest payment on time but were facing cash flow mismatch. 

"The company proposes to meet its obligations through a combination of internal accruals and monetisation of assets. The company is working towards plans to make good its obligations," it said in the filing. READ THE FILING TO THE BSE HERE
 

"The company is working closely with its lenders to optimise its strong asset base globally and bring the situation back to normal as soon as possible," Cox & Kings said.

The stock locked in lower circuit for the 16th straight day. In past two months, it tanked 81 per cent, against 3 per cent rise in the S&P BSE Sensex.

On July 11, the rating agency CARE Ratings revised Cox & King’s long-term bank facilities of Rs 1,760 crore to 'CARE D' from 'CARE C'. "The revision in ratings assigned to Cox and Kings takes into account default in CP (carved out) redemption due on July 9 and overdues in bank accounts," it said.

Till 02:03 pm, a combined 81,621 shares changed hands on the counter and there were pending sell orders for 12.9 million shares on the BSE and NSE.