Troubled Cox & Kings owes Rs273cr to UAE lender ADCB

MUMBAI: ADCB, the UAE’s third largest bank with an asset base of about Rs8.3 lakh crore (AED405 billion as of December end, 2019) has an exposure of approximately Rs273.3 crore (AED133 million) to the troubled travel firm Cox & Kings, according to a filing on Friday by the latter.

Cox & Kings is currently going through corporate insolvency resolution process (CIRP). The Mumbai bench of the National Company Law Tribunal (NCLT) has directed to initiate insolvency proceedings against Cox & Kings in October last year over the plea filed by Rattan India Finance, claiming a default on a loan given by it.

While the total claims to 32 creditors, including major banks, amount to Rs5901 crore as of the latest estimate by the company, the largest claim of Rs2267 crore has been raised by Yes Bank followed by Axis Bank at Rs1065 crore.

There were recent reports that Abu Dhabi Stock Exchange (ADX)-listed ADCB, which a year ago concluded a merger with another two Abu Dhabi-based banks, Union National Bank (UNB) and Al Hilal Bank, has a huge exposure of about $980 million to the UAE’s embattled healthcare major NMC Health – which was founded by an Indian in the early 70’s.

Following a series of developments that grabbed headlines in the UAE-based media, the High Court in London more than a week ago placed NMC Health into administration following an application from ADCB, after NMC has failed to reach a deal with its creditors.

 

 

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