(Alliance News) - Finablr PLC on Wednesday said that Central Bank of UAE has decided to supervise the operations of the company's unit UAE Exchange Centre LLC, as the troubled foreign exchange services provider potentially seeks to file for insolvency.
The Central Bank of UAE also has commenced an examination of UAE Exchange Centre to verify its compliance with applicable laws and regulations, the company added.
UAE Exchange deals primarily in remittance, foreign exchange and bill payment services.
Separately, Finablr's Travelex unit said it is capable of operating separately on a stand-alone basis and that its operations are continuing as usual.
Travelex added that it undertaking an extensive work to mitigate the severe challenges created by reduced travel volumes as a result of the Covid-19 crisis.
On Tuesday, Finablr announced its intention to potentially seek insolvency to maximise any remaining value in the company, after discovering undisclosed loans against shares worth USD100 million.
The Abu Dhabi-based company on Monday reported the resignation of Promoth Manghat as chief executive and had said that it was unable accurately to assess its financial position following discovery of USD100 million worth of cheques, which may have been used as security for financing arrangements for the benefit of third parties.
Finablr, which also had to deal with a major cyber attack at the start of 2020, appointed risk consulting firm Kroll Inc to carry out a more comprehensive review of related-party transactions and on and off-balance-sheet debt, including the issues identified above regarding the cheques and any other contingent liabilities.
Shares in the company were suspended from trading in London on Monday.
Finablr's co-chair, Bavaguthu Raghuram Shetty, also is a founder of NMC Health PLC. Finablr and NMC both have been looking into the true nature of Shetty's holdings in each company.
In December, short-seller Muddy Waters released a damning report into NMC Health, making a series of allegations about governance at NMC.
NMC Health announced on Tuesday last week the discovery of USD2.7 billion of debt of which the board had not been aware. Former chief executive Prasanth Manghat was fired in February over discrepancies in company finances.
By Tapan Panchal; tapanpanchal@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
