Shares of Cox & Kings were locked in lower circuit of 5 per cent at Rs 19, also its new low on the BSE on Wednesday, after the company defaulted on its repayment obligations on commercial papers worth Rs 45 crore on Tuesday. This is Cox & Kings' fourth default in three weeks.
In a filing to the BSE, the travels and tour operator said it has also failed to pay the interest of over Rs 41 lakh on secured redeemable non-convertible debentures worth Rs 50 crore in timely manner. These NCDs carried a tenure of 24 months at a coupon of 10 percent per annum payable per month, it said.
The stock locked in lower circuit for the 16th straight day. In past two months, it tanked 81 per cent, against 3 per cent rise in the S&P BSE Sensex.
On July 11, the rating agency CARE Ratings revised Cox & King’s long-term bank facilities of Rs 1,760 crore to 'CARE D' from 'CARE C'. "The revision in ratings assigned to Cox and Kings takes into account default in CP (carved out) redemption due on July 9 and overdues in bank accounts," it said.