CARE downgraded credit rating to D from A+ for company's commercial paper of Rs 375 crore.
Cox & Kings shares were locked at 5 percent lower circuit at Rs 32.95 on July 2 after rating agencies assigned default rating for its commercial paper.
There were pending sell orders of 3,904,595 shares, with no buyers available on the BSE at 1454 hours IST.
CARE downgraded credit rating to D from A+ for company's commercial paper of Rs 375 crore while Brickwork also downgraded credit rating to D from A1+ for the commercial paper issue of Rs 1,685 crore due to delay in servicing of obligations.
"The working capital situation at Cox & Kings stretched in the last few months and was further impacted due to its inability to replace the short term loans with long term loans / regular working capital lines," the travel company said in its BSE filing.
"The company is taking all the required measures to resolve the temporary cash flow mismatch. It is evaluating each business and identifying ways to improve operational performance. It will also be approaching its lenders to work out some time-bound program to meet this emergency," it added.India Union Budget 2019: What does Finance Minister Nirmala Sitharaman have up her sleeve? Click here for top and latest Budget news, views and analyses.
