NEW DELHI, 30 September 2019: Cox & Kings’ financial troubles appear to have deepened following the International Air Transport Association’s decision to terminated the licence of Cox & Kings to sell tickets.
According to Moneycontrol News, India, IATA instructed the company to surrender its IATA ID Card.
However, the company has released statements to the media saying it has requested IATA to re-instate its licence against the clearance of dues.
Earlier, EbixCash announced that it had signed an agreement with travel company Cox and Kings for its business travel agreements with corporates in India.
In a press release on 27 September, it stated that these travel agreements would be transferred to EbixCash’s corporate Mercury Travel division.
Following the agreement, some of the core employees of Cox and Kings will be transferred to the EbixCash payroll.
A Business Today report said Cox & Kings had defaulted on multiple payments the most recent occurring 20 September. The company’s shares hit an all-time low last week.
With the ongoing crisis, Cox and Kings, has got a 180-day limit from lenders to finalise a resolution plan, Business Times reported.
Cox & Kings is around US$500 million in debt.
Headquartered in Mumbai, Cox and Kings has offices across India and employs over 5,000 people.
“We propose to meet the company’s financial obligations through a combination of internal accruals and monetisation of assets, we are in the process of evaluating the potential of every business to generate cash flows” the regulatory statement read.
The travel company is also looking to sell its European hospitality chain Meininger Hotels.
(Sources: Business Today and Moneycontrol News)
