NEW DELHI : As its stock price fell by 30 per cent in the past five trading sessions due to payment default, travel services firm Cox & Kings Monday said it is taking steps to resolve the "temporary" cash flow mismatch and will approach lenders to work out a "time-bound" solution to this emergency.

On June 27, the company had said it defaulted on payment of commercial papers due to cash flow mismatch. Cox & Kings was required to pay 200 crore, however, it was able to pay only 50 and defaulted on 150 crore.

In a regulatory filing, Cox & Kings said: "The company is taking all required measures to resolve the temporary cash flow mismatch."

The working capital situation at Cox & Kings stretched in the past few months and was further impacted due to its inability to replace the short-term loans with long-term loans, it said.

"The company will also be approaching its lenders to work out some time-bound program to meet this emergency," it said, adding that Cox & Kings is evaluating each business and identifying ways to improve operational performance.

The company also said it is focusing on cash flow generation from each business and working at the highest priority to free working capital.

"In the circumstances above, the company requests the co-operation and understanding of all its stakeholders, including employees, franchisees, shareholders, lenders, vendors and other partners," the company said.

Asserting that the company has robust operating businesses, Cox & Kings said it has a thriving and highly valuable hybrid hotels business in Meininger.

It has a niche business in Leisure International and is also an emerging player in the visa processing services business. Each of these businesses carries high intrinsic value, it said.

"We work tirelessly to restore the unblemished value in the legacy brand," the company added.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.