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Cox & Kings defaults on repaying maturing CP

On Wednesday, Brickwork Ratings downgraded the rating of the company’s NCDs of Rs 50 crore.

ETMarkets.com|
Jun 27, 2019, 10.04 PM IST
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Cox & Kings on Thursday said it failed to meet a debt repayment obligation towards maturity of unsecured commercial papers on June 26. Out of an aggregate amount of Rs 200 crore, the company managed to pay Rs 50 crore while the balance amount of Rs 150 crore remained unpaid, the company said.

It made the disclosure to stock exchanges under Regulation 30 of Sebi (Listing Obligations and Disclosure Requirements) Regulation 2015.

“We wish to further state that the company has been meeting its liability obligations. However, 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,” the company said.

Shares of the company fell 10 per cent in Mumbai trading on Thursday to close at Rs 40 even as the broader market benchmark Sensex closed flat.

On Wednesday, Brickwork Ratings downgraded the rating of the company’s NCDs of Rs 50 crore from BWR AA to BWR AA- with stable outlook. It, however, retained its rating on the commercial paper of the company as BWR A1+
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