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Cox & Kings' RP seeks access to company documents

Alok Kumar Agarwal, the company’s resolution professional (RP), had informed the tribunal that he is unable to go ahead with corporate insolvency resolution process (CIRP) in the absence of relevant documents and that the tribunal needs to direct the suspended board to furnish the documents.

, ET Bureau|
Last Updated: Feb 18, 2020, 09.30 AM IST
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Mumbai: The Mumbai bench of the National Company Law Tribunal (NCLT) has directed the suspended directors of travel company Cox & Kings—which is undergoing insolvency proceedings—as well as the erstwhile auditors of the company to give the details sought by the resolution professional (RP).

Alok Kumar Agarwal, the company’s RP, had informed the tribunal that he is unable to go ahead with corporate insolvency resolution process (CIRP) in the absence of relevant documents and that the tribunal needs to direct the suspended board to furnish the documents.

“We direct the former directors of the company to produce all the relevant documents sought by the RP within two days,” said the division bench of the NCLT comprising Bhaskara Pantula Mohan and Shyam Babu Gautam. “Failing which we will be compelled to issue an arrest warrant against the suspended directors.”

The tribunal has set February 20 as the next date for hearing.

In October, NCLT had admitted a plea filed by Rattan India Finance to initiate insolvency proceedings against Cox &Kings for defaulting on a loan repayment. The company had defaulted on loan obligations twice last year. In June, it had informed the stock exchanges that it had not paid Rs 150 crore out of Rs 200 crore worth of loans given by two investors. Then in September it said it had defaulted on a loan of Rs 30 crore.

Around the same time, the company had also sold off its corporate travel business to Ebix Software for an undisclosed amount. As per the company’s annual report for 2018—the most recent one—total debt stood at ?3,983 crore.

In September, the International Air Transport Association (IATA) had terminated its licence to sell air tickets and asked it to surrender the IATA ID card after it defaulted on payments.

ET had reported on January 28 that, suspecting fraud, lenders to Cox & Kings have initiated a forensic investigation into the matter and the role, if any, of senior executives and the company’s Indian promoters.
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