(Sharecast News) - Travelex owner Finablr said on Wednesday that it has appointed law firm Skadden to investigate historic potential malfeasance within the company and any misappropriation of assets.
The company said it expects forensic experts to be appointed in connection with the investigation, which will include a comprehensive review of payments made and transactions carried out within the group.
Finablr has entered into a funding agreement with a third party to cover the cost of the investigation and potentially the pursuit of claims.
"The board and the newly appointed management team of Finablr remains committed to identify any wrongdoings and recovering any of misappropriated monies and/or assets," it said. "Finablr continues to work with regulators and authorities around the world on this matter."
In April, Finablr said it had appointed Houlihan Lokey to advise on options for the company including a debt restructuring, capital raise or asset sale. It had warned the month before that it was preparing for potential insolvency, while operations of its unit in the United Arab Emirates (UAE) were seized by the country's central bank.
It also revealed that $100m (£80m) in cheques may have been used as security for financing arrangements for the benefit of third parties.
The company's problems started when US shortseller Muddy Waters mounted an attack on NMC Health over its corporate governance. These were compounded by a malware attack on Travelex's computer system and the collapse in air travel caused by the coronavirus pandemic. Both firms were founded by Indian billionaire BR Shetty.
(Frank Prenesti contributed to this article)
14 Mar 2022 16:58
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