The Hindu Business Line

Cox & Kings de­lays Q1 re­sults an­nounce­ment

Travel com­pany gets 180-day breather from lenders to fi­nalise a res­o­lu­tion plan

- IS­TOCK/DRMAKKOY Business · International Air Transport Association · Air Transport Association · State Bank of India Group · India · Bank of India · United Kingdom · KPMG Corporate Finance · Cox & Kings

Travel com­pany Cox & Kings on Mon­day said it was un­able to de­clare its fi­nan­cial re­sults for the quar­ter ended June 30, as it was in the midst of fi­nal­is­ing a res­o­lu­tion plan to res­ur­rect the com­pany. The com­pany also got a 180-day breather from lenders to fi­nalise a res­o­lu­tion plan.

In a fil­ing to the ex­changes, the com­pany said it in­tends to ex­tend the date of sub­mis­sion of the Q1 re­sults. “The re­vised date of the meet­ing to con­sider the said quar­terly fi­nan­cial re­sults shall be com­mu­ni­cated at the ear­li­est pos­si­ble.”

The firm has been fac­ing a liq­uid­ity crunch for the past few months. On three different oc­ca­sions, it had de­faulted ₹10 crore, ₹174 crore and ₹45 crore worth com­mer­cial pa­pers re­spec­tively.

The In­ter­na­tional Air Trans­port As­so­ci­a­tion (IATA) had can­celled the com­pany’s li­cence to sell tick­ets. Its in­de­pen­dent direc­tor Sub­hash Chan­dra Bhargava, too, an­nounced his res­ig­na­tion from the board last week.

State Bank of In­dia is the lead lender along with a con­sor­tium of other banks.

About 70 per cent of lenders have signed the In­terCred­i­tor Agree­ment (ICA) for a pe­riod of 180 days to fi­nalise a res­o­lu­tion plan. “The com­pany is pe­rus­ing with the bal­ance lenders with re­spect to ICA sign­ing,” the com­pany said.

The com­pany in­formed the ex­changes that in a board meet­ing held on Au­gust 12 it was de­cided to with­draw and can­cel the pro­posal of the dec­la­ra­tion of div­i­dend. A div­i­dend of 20 per cent at Re 1 per share was pro­posed for the fi­nan­cial year 2018-19.

The travel ser­vice provider also in­formed that Malvern Group Ltd, the hold­ing com­pany of Su­per­break and LateRooms Ltd, had de­clared in­sol­vency in the UK. Cox & Kings had in­vested ₹9.21 crore in the Malvern Group for a 49 per cent The travel com­pany is work­ing on var­i­ous mon­eti­sa­tion ini­tia­tives to ad­dress its liq­uid­ity is­sues

stake in the com­pany. Its sub­sidiary com­pa­nies, Su­per­break was ac­quired by Cox and Kings as part of Hol­i­day­break Ltd acquisitio­n in Septem­ber 2011 which was a dom­i­nant short hol­i­day provider in the UK. LateRooms was ac­quired by Cox and

Kings in Oc­to­ber 2015.

“Su­per­break and LateRooms Ltd, sub­sidiary of Malvern Group, had ap­pointed KPMG as the ad­min­is­tra­tor. The ad­min­is­tra­tor will work closely with the As­so­ci­a­tion of Bri­tish Travel Agents and UK Civil Avi­a­tion Au­thor­ity

to min­imise dis­rup­tions and will seek of­fers from suit­ors,” it said.

The travel com­pany in a state­ment said it is “work­ing on var­i­ous other mon­eti­sa­tion ini­tia­tives to ad­dress its liq­uid­ity is­sues”.

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