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Cox & Kings plunges 10% as co defaults on Rs 150 crore CPs

Year-to-date, the stock has come off 78 per cent.

ETMarkets.com|
Updated: Jun 28, 2019, 03.42 PM IST
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How default leads to NAV crash in mutual funds
Cox & Kings said it would meet its financial obligations "through a combination of internal accruals and monetisation of assets".
NEW DELHI: Shares of Cox & Kings plunged 10 per cent in trade on Friday to hit their fresh all-time low of Rs 36.45.

The travel and tour company on Thursday said it has defaulted on the payment of commercial papers due to cash flow mismatch and a situation exacerbated by rating downgrade.

Cox & Kings said it would meet its financial obligations "through a combination of internal accruals and monetisation of assets".

The company was required to pay Rs 200 crore, however, it was able to pay only Rs 50 crore and defaulted on Rs 150 crore.

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

Year-to-date, the stock has come off 78 per cent.

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