Cox & Kings stock hits lower circuit; defaults CP

Mumbai-headquartered travel and leisure service provider, Cox & Kings made a stock exchange filing which informed that the company defaulted on its commercial paper.

Cox & Kings has defaulted payment towards maturity of Commercial Paper (CP) worth Rs. 149 crore. The company defaulted on unsecured commercial paper. The company is working closely with its lenders to optimise its strong asset base globally and bring the situation back to normal as soon as possible, said the release filed on the exchanges.

The management of the company at its meeting held on August 12 canceled the proposed dividend declaration of 20 per cent (Rs. 1) per share for the financial year 2018-19 declared by the board on May 30, 2019 due current financial condition of the company.

The shares of the company took a beating earlier during the month after it delayed submission of its Q1FY20 results. In a separate filing, the management said that due to various monetisation plans the company is not in a position to finalise and consider its financial results for the quarter.

Cox and Kings is engaged in providing travel management solutions. Its services include destination management, outbound tourism, business travel, insurance and conference solutions. The firm also offers domestic holidays, trade fairs, foreign exchange and insurance.

At 12:10 hours, the stock traded at Rs. 6.93 per share, which also is its 52-week low, on BSE.