Stay Sought On Sale Of UK Assets Of Cox & Kings

Cox & Kings (India) Ltd’s resolution professional has moved the National Company Law Tribunal (NCLT) seeking a stay on the sale of its UK based assets by two of its subsidiaries.

The lawyer representing the company’s resolution professional stated that its two subsidiaries namely Prometheon Enterprises Ltd and Meininger Hotels face judicial proceedings in the UK due to which it would be difficult to know if proceeds of the sale would come to Cox & Kings (India) Ltd.

The development has come after newly appointed auditors of the company found that its earlier auditor had used allegedly forged financials of Prometheon Enterprises Ltd in a consolidated financial statement for 2018-19 in India.

According to a recent filing, it was found that the subsidiary’s financials were not signed by Raffingers, which happens to be the auditor of the company’s the UK arm.

Suspended directors of the company had proposed the sale of its hotel assets of its UK arms to pare debt, claiming that these assets were cumulatively worth more than 130 million UK pounds.

However, later the Mumbai bench of the NCLT admitted an insolvency application against the company filed by non-bank lender Rattan India Finance Ltd after Cox & Kings defaulted on its debt.