Cox & Kings defaults on payments of Rs 150 crore, stock plummets 10%

Cox & Kings, which runs the tours and hotels business in India and abroad, has been downsizing its operations since the past few years to pare back its debt

Cox & Kings has defaulted on commercial paper worth Rs 150 crore, the company informed stock exchanges on Thursday. The tour operator has been facing cash crunch for some time now and has delayed salaries of senior executives for the month of May. 

Suppliers, too, have refused to extend credit over fears of default. The stock has also taken a pounding in the last few trading sessions, following a credit rating downgrade.

The company’s stock fell 10 per cent on Thursday to close at Rs 40.50, and is down 33 per cent since last Friday. The stock of its financial