Cox & Kings is the top loser on the BSE, yesterday and today. In fact it has been falling for the past three days and lost 27% in this period. Today, it opened itself with a loss of 10% at Rs.36.45, a new low and hitting the 10% LC immediately. On a year-to-date basis, the stock is down 82%
The company announced in the night yesterday that it has defaulted on the payment of commercial papers.
The company had to pay up Rs.200 crore but it could cough up only Rs.50 crore and defaulted on Rs.150 crore due.
It blamed this on “cash flow mis-match and a situation exacerbated by rating downgrade.”
On 26th June, Brickwork Ratings downgraded rating of the company’s Rs 50-crore NCDs, while retaining its commercial paper rating for Rs 2,060 crore. Prior to that, on 17th June, CARE Ratings had downgraded its rating.