NCLT admits insolvency plea against Cox & Kings
The company said last month that the International Air Transport Association (IATA) had terminated its licence to sell air tickets and asked it to surrender the IATA ID card.
The bench appointed Gurgaon based Alok Kumar Agarwal on Tuesday as the interim resolution professional to oversee the company’s affairs, a person aware of the matter said. The written order was yet to be made available.
Cox & Kings has defaulted on loan obligations twice this year. In June, the company informed the stock exchanges that it had not paid Rs 150 crore out of Rs 200 crore worth of loans given by two investors. In September, the company said it defaulted on a loan of ₹30 crore.
The company said last month that the International Air Transport Association (IATA) had terminated its licence to sell air tickets and asked it to surrender the IATA ID card. It also said it had requested IATA to reinstate the company’s licence against clearance of dues.
Later in the month, Cox & Kings sold its corporate travel unit to Ebix Software for an undisclosed sum.
On October 15, the company’s chief financial officer resigned due to “personal reasons.” “It could be challenging for the resolution professional to run the company as a going concern with its vendors spread all over the world that might get apprehensive due to initiation of insolvency proceedings and hence existing contracts may come under stress,” said Ashish Pyasi, associate partner at Dhir & Dhir Associates.