Travel company Cox & Kings Ltd is looking to sell its European hospitality chain Meininger Hotels in a bid to reduce its debt, Bloomberg reported citing people with knowledge of the matter.
Cox & Kings is working with Lazard Ltd. to assess interest from potential suitors for Meininger, said the report.
In July, the company said it was is struggling to resolve the temporary cash flow mismatch that led to a default on payments and added that it will approach lenders to work out some time-bound programme to meet this emergency.
The company is taking “all required measures” to resolve the cash flow mismatch and is “evaluating each business” to improve operational performance, it said in an exchange filing at the time.
Care Ratings has downgraded ratings of the company's long-term facilities and a commercial paper issue totalling Rs 3,445 crore to the status of being in or expected to be in default.
Last month, the travel company’s licence was suspended by the International Air Transport Association (IATA).