Cox & Kings’ shares were locked at 10 percent lower circuit intraday on June 28 after the company was found faulty on the
payment of commercial papers due to cash flow mismatch.
The share was trading at its new 52-week low of Rs 36.45. There were pending sell orders of 1,695,952 shares, with no buyers available.
Out of the aggregate amount of Rs 200 crore of the unsecured commercial papers, the company paid Rs 50 crore and the balance amount of Rs 150 crore has not been paid.
The company was required to pay Rs 200 crore, but only paid Rs 50 crore and defaulted on Rs 150 crore.
“The company has been meeting its liability obligations. 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,” company said in its release.
The company is working towards plans to make good its obligations, it added.
At 0928 hrs, Cox & Kings was quoting at Rs 36.45, down Rs 4.05, or 10 percent on the BSE.