Cox & Kings has defaulted on an unsecured commercial paper of Rs 125 crore, its third default in the past fortnight totalling Rs 325 crore.
Meanwhile, Care Ratings has revised Cox & King's long-term bank facilities of Rs 1,760 crore to 'Care D' from 'Care C.' "The revision in ratings assigned to Cox and Kings takes into account default in CP (carved out) redemption due on July 9 and overdues in bank accounts," it said.
"The promoters' holding in Cox & Kings is 49.8 per cent as of end of March 2019 of which 63.28 per cent shares are pledged as of March 2019. Cox & Kings' share price has also declined significantly thus curtailing the company's financial flexibility to large extent," Care Ratings said.
Cox & Kings said in a regulatory filing on Wednesday after market hours: "The company is working closely with its lenders to optimise its strong asset base globally and bring the situation back to normal as soon as possible."
The tour operator has been facing a cash crunch resulting in delays in salaries and vendor payments. The International Air Transport Association has suspended the company from selling tickets on credit as it reviews its credit worthiness.
At 12 noon on Thursday, Cox & Kings' stock was trading at a new low of Rs 23.20 and has tanked nearly 54 per cent from Rs 50 on June 25.
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