Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,895.4523.35
Stock Analysis, IPO, Mutual Funds, Bonds & More

Cox & Kings defaults Rs 50 crore debt papers

Out of Rs 65 crore that fell due, the company repaid only Rs 15 crore to investors of CPs.

, ET Bureau|
Jul 01, 2019, 11.59 PM IST
0Comments
BCCL
Cox & Kings defaults Rs 50 crore debt papers
Several acquisitions in the past seven-eight years have stretched the company’s balance sheet, an ET analysis showed.
Travel-services company Cox and Kings defaulted Rs 50 crore in repayment commitments toward outstanding commercial papers, a short-term debt instrument, citing a temporary mismatch in cash flows.

"The working capital situation at Cox & Kings (was) stretched in the past few months and was further affected due to its inability to replace the short-term loans with long-term loans/regular working capital lines," the company told stock exchanges late on Monday. "The company is taking all the required measures to resolve the temporary cash-flow mismatch."

Out of Rs 65 crore that fell due, the company repaid only Rs 15 crore to investors of CPs.

Cox and Kings is also evaluating each business and identifying ways to improve operational performance. It plans to reach out to lenders, seeking revision in loan repayment terms.

"The company will also be approaching its lenders to work out some time-bound program to meet this emergency," it said.

Earlier last week, rating companies cut its creditworthiness to 'D' or default.

Several acquisitions in the past seven-eight years have stretched the company’s balance sheet, an ET analysis showed.
Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service