Trade Nivesh | Cox & Kings Stock Hits
Shares of travel and tour company Cox & Kings could extend its losing spree as investors have been spooked by the company's default on payment of commercial papers. The stock ended at the 10% lower circuit at Rs 36.45 on Friday – a record low for the stock.
Cox & Kings on Thursday said it has defaulted on payment of commercial papers due to cash flow mismatch and a situation exacerbated by rating downgrade.
The company said it would meet its financial obligations “through a combination of internal accruals and monetisation of assets”.
The company was required to pay Rs 200 crore, however, it was able to pay only Rs 50 crore and defaulted on Rs 150 crore.
On Wednesday, Brickwork Ratings downgraded the rating of the company’s NCDs of Rs 50 crore from BWR AA to BWR AA- with a stable outlook. It, however, retained its rating on the commercial paper of the company as BWR A1+.
Experts said there is panic among investors around the liquidity crisis, which leads to a sharp fall in stocks on any default news.
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