The National Company Law Tribunal (NCLT) has admitted a plea to initiate insolvency proceedings as well as appointed a resolution professional for Cox & Kings for defaulting on a loan. The NCLT admitted the plea by Rattan India Finance to initiate insolvency proceedings against the company for defaulting on a loan of Rs 30 crore.
Gurugram-based Alok Kumar Agarwal has been appointed the interim resolution professional by the NCLT to oversee the travel company’s affairs, as mentioned in a report in The Economic Times. The written order is yet to be made available.
Cox & Kings has defaulted on loan obligations twice this year. The company had informed the stock exchanges in June that it had not paid Rs 150 crore of the Rs 200 crore worth of loans that were extended by two investors. Cox & Kings said in a regulatory filing in September that it defaulted on a loan of Rs 30 crore.
Last month, the International Air Transport Association (IATA) had terminated its licence to sell tickets, the company had said. The IATA had also asked the company to surrender its IATA ID card. Cox & Kings had then asked IATA to reinstate the company’s licence against clearance of dues. “We propose to meet the company’s financial obligations through a combination of internal accruals and monetization of assets, we are in the process of evaluating the potential of every business to generate cash flows,” the regulatory statement had said.
The company also signed an agreement last month to sell the corporate travel unit to Ebix Software.
Source: Business Today, October 23, 2019