In August, Cox & Kings had signed an inter-creditor agreement (ICA) with its lead banker, the State Bank of India.
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.