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Cox & Kings hits lower circuit on fresh payment default

Care Ratings had already downgraded ratings of the company’s long-term facilities in July.

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Last Updated: Aug 06, 2019, 10.10 AM IST
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In a BSE filing, the travels and tour operator said that it is working closely with its lenders to optimise its asset base globally and bring the situation back to normal as soon as possible.
Shares of Cox & Kings hit lower circuit of 5 per cent on Tuesday after it defaulted on the payment of commercial paper worth Rs 5 crore due on August 5.

This is another instance within a span of six weeks that the beleaguered firm has defaulted on meeting financial obligations.

In a BSE filing, the travels and tour operator said that it is working closely with its lenders to optimise its asset base globally and bring the situation back to normal as soon as possible.

Care Ratings had already in July downgraded ratings of the company’s long-term facilities and a commercial paper issue totalling Rs 3,445 crore to status of being in or expected to be in default.

The first instance of default on commercial papers (CPs) worth Rs 150 was declared by the company on June 27, 2019, a day after the date of actual default. The second instance was made public on default on CPs worth Rs 50 crore on June 29, while the actual default happened on June 28, 2019.

Earlier on July 1, Cox & Kings said that company’s working capital situation was stretched in the last few months, which was further impacted due to its inability to replace the short term loans with long term loans or regular working capital lines.

"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 in a regulatory filing.

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