Stocks

Cox & Kings shares plunge 5% after defaults on repayments

PTI New Delhi | Updated on July 17, 2019 Published on July 17, 2019

Shares of Cox & Kings fell by 5 per cent on Wednesday after the company said it has defaulted on its repayment obligations on commercial papers worth ₹45 crore.

The scrip declined 4.76 per cent to close at ₹19, its lower circuit limit and also its 52-week low, on the BSE. On the NSE, it fell by 4.98 per cent to ₹19.05.

The tours and travel company & Kings Tuesday said it has defaulted on its repayment obligations on commercial papers worth ₹45 crore, while interest of ₹41 lakh could not be paid timely on bonds worth ₹50 crore. This is the fourth instance within a span of just three weeks that the beleaguered firm has defaulted on meeting financial obligations.

In a regulatory filing, the company said that it has defaulted on payment on unsecured commercial papers worth ₹45 crore on July 16, 2019.

In a separate filing, the company said it defaulted on July 15, 2019, towards paying interest of more than ₹41 lakh during June 15 to July 15, 2019, on secured redeemable non-convertible bonds worth ₹50 crore. “Whilst the company was making all efforts to make the interest payment on time, the same could not be paid due to cash flow mismatch. The company proposes to meet its obligations through a combination of internal accruals and monetisation of assets. The company is working towards plans to make good its obligations,” it said in the filing.

Published on July 17, 2019
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