(Alliance News) - Travelex owner Finablr PLC on Thursday said its current indebtedness amount to approximately USD1.30 billion, almost four times its most recently reported figure.
On April 9, troubled foreign currency firm Finablr announced it had chosen Houlihan Lokey to act as its independent financial adviser and establish its debt position.
Results of this exercise have revealed debt of around USD1.30 billion, excluding Travelex liabilities, far in excess of the interim results figure of USD334.1 million as at June 30.
"The board cannot exclude the possibility that some of the proceeds of these borrowings may have been used for purposes outside of the Finablr group," the company said.
Finablr said work to very its debt position is still ongoing and both it and Houlihan Lokey plan to engage with creditors to look into available options.
This is another blow to Finablr which, back in March, said it intended to potentially seek insolvency in a bid to maximise any remaining value in the company. This was after the company discovered undisclosed loans against shares worth USD100 million.
On Wednesday, Bavaguthu Raghuram Shetty - Finablr's co-chair - claimed to have "no knowledge" of transactions made under his name. He explained that bank accounts were fraudulently created under his name, something he said he was unaware of and had not consented to.
Shetty has undertaken legal and forensic investigations, the preliminary findings of which indicated "serious fraud and wrongdoing" both at Finablr and at UAE-focused healthcare firm NMC Health PLC, where he was previously chair.
Finablr's shares were suspended from trading in March.
By Anna Farley; annafarley@alliancenews.com
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Finseta (FIN)