Shares of Cox & Kings hit a lower circuit of 10 percent for the second consecutive day on Friday after the company in its press release said that it has defaulted on the payment of commercial papers due to cash flow mismatch and a situation exacerbated by rating downgrade. At 09:26 AM, the share price was trading at Rs 36.80 per share, lower by 9.91 percent on the NSE.
This month, the stock has declined 56 percent and has already tanked 32 percent this week. In fact, in last one year, the value of its share price has come down by 80 percent.
Cox & Kings 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 Cox & Kings was able to pay only Rs 50 and defaulted on Rs 150 crore.
"We wish to further state that the Company has been meeting its liability obligations, “said Cox & Kings in a regulatory filing.
"However, due to cash flow mismatch and a situation exacerbated by rating downgrade, the Company proposes to meet its financial obligations through a combination of internal accruals and monetisation of assets," said Cox & Kings in a regulatory filing.
The company is working towards plans to make good its obligations, the statement said.
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First Published: Jun 28, 2019 9:45 AM IST
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