(Sharecast News) - Trading in shares of Travelex owner Finablr was suspended on Monday after the company warned it could go bust as it announced the discovery of $100m of cheques that had not previously been disclosed, along with the departure of its chief executive.
Finablr said the liquidity problems it mentioned in its update last week had worsened and it has now reached a point where constraints on the business were having a "material adverse impact" on its operations, including resulting in it no longer being able to provide certain payment processing services.
The company also it had been informed of the presence of cheques, written by group companies and dating back to before the IPO, which may have been used as security for financing arrangements for the benefit of third parties.
It said the cheques - the existence of which has only recently been brought to the attention of the board - total about $100m.
Finablr, which shares a founder with beleaguered UAE healthcare provider NMC Health, said "urgent investigations" into the cheques are ongoing. However, as a result of that and the liquidity issues, "the board is unable accurately to assess the financial position of the company and there is a material uncertainty about the group's ability to continue as a going concern".
"The board is looking to put in place a package of urgent measures aimed at restoring confidence and stability across its stakeholders."
Finablr said it had accepted the resignation of chief executive Promoth Manghat.
As part of the measures being put in place, the company has decided to establish a committee of its independent non-executive directors to carry out a comprehensive review of its liquidity and cashflow management functions, its financial and debt position, and its strategic options.
In addition, the board has appointed Kroll to carry out a more comprehensive review of related-party transactions and on and off-balance-sheet debt, including issues regarding the cheques and any other contingent liabilities
Finablr will also appoint a further accounting advisory team to "support and strengthen" its finance function with a focus on liquidity.
1 Apr 2020 08:24
Finablr makes Bhairav Trivedi CEO as CFO quits
(Sharecast News) - Finablr appointed Bhairav Trivedi as its chief executive and announced the departure of its finance chief in the latest upheaval at the embattled owner of Travelex.
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