Lenders cautious as Cox & Kings defaults on commercial paper of Rs 200 cr

Cox & Kings had a total debt of Rs 3,238 crore at end of FY19 and this included both short-term and long-term loans

Lenders have turned cautious after Cox & Kings defaulted on commercial paper of Rs 200 crore in the last few days and are looking at ways to address the tour operator’s debt issues.
 
Cox & Kings continues to be a standard asset, and banks have not yet taken a call on reworking on debt repayment terms and other conditions. But two defaults (of Rs 150 crore and Rs 50 crore) last week have prompted banks to take steps for minimising their exposure.
 
A senior official said a public sector bank, which is under Prompt Corrective Action (PCA) regime,