Cox & Kings
on Monday said it will be approaching its lenders to "work out some time bound programme" to resolve the financial crisis.
The tour operator issued a statement on Monday after defaulting on Rs 50 crore commercial paper. This is the second default by the company. Last week, it defaulted on a commercial paper of Rs 150 crore.
Credit rating agencies Brickworks and CARE Ratings once again downgraded the company's debt following the latest default.
"The company is taking all required measures to resolve the temporary cash flow mismatch. It is evaluating each business and identifying ways to improve operational performance. The company is focusing on cash flow generation from each business and working at the highest priority to free working capital," Cox & Kings
said. The company added that it had robust operating businesses.
The International Air Transport Association too is carrying out a review following heightened credit risk. As a result, Cox & Kings
cannot issue air tickets under a billing and settlement plan until the completion of the review.