The Mumbai bench of the National Company Law Tribunal (NCLT) admitted an insolvency petition against the beleaguered tours and travel operator, Cox & Kings, on October 22. The petition was filed by Rattan India Finance in August to recover dues worth Rs 30.24 crore.
The NCLT also imposed a moratorium on “transferring, encumbering, alienating or disposing off” of any assets belonging to Cox & Kings effective from October 22. The bench has appointed Alok Kumar Agarwal as the interim resolution professional (IRP).
According to the insolvency petition by Rattan India, Cox & Kings had in May and June entered into agreements to avail two loan facilities, worth Rs 30 crore and `40 crore, respectively. Accordingly, Rattan India had disbursed a total of `30 crore, with an annual interest payable of 13.5%.
The petition stated that Cox & Kings first defaulted on the the repayment of principle and interest amount on June 28. Following the default, Rattan India recalled the loan facilities and requested Cox & Kings to pay the entire outstanding amount under both the facilities.
In August, Cox & Kings had also signed an inter-creditor agreement (ICA) with its lead banker, the State Bank of India.
Source: Financial Express, November 1, 2019