By Bernd Debusmann Jr
Earlier in March, Finablr was demoted from London's FTSE 250 index
Finablr will launch a probe into its financial arrangements and has warned that travel restrictions will lead to reduced demand for its foreign exchange and payment services, it announced on Thursday.
In a statement posted to the London Stock Exchange, Finablr said that “travel restrictions imposed to limit the spread of Covid-19, which have reduced demand for its foreign exchange and payment services and has restricted the movement of physical currencies that the company needs to operate tis business.”
Additionally, the Finablr statement said that its liquidity and cashflow positions are likely to be adversely impacted by a number of factors, including the recent credit downgrade of Travelex’s bonds, a liquidity squeeze at the group and operational level, and adverse perceptions in the market surrounding embattled NMC Health.
Earlier in March, Finablr was demoted from London’s FTSE 250 index, after the company warned that the ongoing coronavirus epidemic and cyber attacks on its Travelex foreign exchange business have diminished profits.
Additionally, the company’s share price and bond price have taken a hit as a result of its ties with embattled NMC Health.
NMC founder and former CEO BR Shetty owns 66 percent of shares in Finablr.