Cox & King continues to default on commercial paper

Cox & King informed the bourses that it has defaulted on unsecured commercial paper due on July 15. The gross amount on which default occurred is around Rs. 45 crore.

Further, the company has failed to make repayment of interest of Rs. 41 lakh on debentures of Rs. 50 crore. This is the third default that the company has made in the last three weeks and cumulative default amount is around Rs. 370 crore on commercial paper.

The company in its exchange filing said that it was making all efforts to make the Interest payment on time, the same could not be paid due to cash flow mismatch and it plans to meet its obligations through internal accruals and monetisation of assets. Due to this cash crisis, the rating agency has already downgraded Cox & King’s debt instruments to default grade adding further woes to the company.

The company said that it is working closely with its lenders to optimise its strong asset base globally and bring the situation back to normal as soon as possible.

With this default, the stock of Cox & King is locked in the lower circuit at Rs. 19 per share, down by 4.8 per cent. The stock has tumbled nearly 91 per cent from its peak of Rs. 211.9.