YES Bank has acquired 18.55% stake in Cox and Kings on invocation of pledged shares. It has also acquired 30% stake in Ezeego One Travel & Tours, which is promoted by Cox & Kings.
“YES Bank has, pursuant to invocation of pledge acquired shares – 3,27,50,139 equity shares having nominal value of INR 5 a share, constituting 18.55% of the post-issue paid-up share capital, of a listed company, Cox & Kings; and 34,080 equity shares having nominal value of INR 10 (USD 0.15) per share, constituting 30% of the post-issue paid-up share capital, of an unlisted company, namely, Ezeego One Travel & Tours,” it said in a regulatory filing.
The shares have been invoked after breach of credit facilities and loans to Ezeego One, YES Bank said.
The move comes at a time when Cox & Kings has been facing an asset-liability mismatch. In a regulatory filing on 1 July, it had announced that its working capital situation was stretched in the last few months, which was further impacted due to its inability to replace short-term loans with long-term loans or regular working capital lines. Some of its bank guarantees are being encashed by International Air Transport Association (IATA).
IATA had also suspended the licence of Cox & Kings for selling tickets as the company continues to grapple with the liquidity crisis.