Cox & Kings slumps after payment default

Cox & Kings was locked in 10% lower circuit at Rs 36.45 at 09:25 IST on BSE after the company defaulted on its payment obligations towards unsecured commercial paper.

The announcement was made after market hours yesterday, 27 June 2019.

Meanwhile, the S&P BSE Sensex was up by 72.45 points, or 0.18% to 39,658.86.

On the BSE, 10,000 shares were traded in the counter so far compared with average daily volumes of 2.87 lakh shares in the past two weeks. The stock opened with an downward gap, sliding by the maximum 10% daily circuit and remained locked at the 10% level at Rs 36.45 so far in the day, also its 52-week low. It hit a 52-week high of Rs 211.90 on 31 October 2018.

Cox & Kings announced that out of aggregate amount of Rs 200 crore, Rs 50 crore has been paid and the balance amount of Rs 150 crore has not been paid.

Cox & Kings said that due to cash flow mismatch and a situation exacerbated by rating downgrade, the company proposes to meet its financial obligations through a combination of internal accruals and monetisation of assets. The company is working towards plans to make good its obligations.

On a consolidated basis, Cox & Kings reported a net loss of Rs 499.72 crore in Q4 March 2019 as compared to a net loss of Rs 46.86 crore in Q4 March 2018. Net sales rose 6.4% to Rs 1258.52 crore in Q4 March 2019 over Q4 March 2018.

Cox & Kings offers all travel related services.

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