Owner of foreign exchange businesses says it is working with accounting firm on 'rapid continengency planning'
Finablr, the embattled owner of foreign-exchange businesses including Travelex Holdings, on Tuesday said it hired an adviser to prepare for potential insolvency proceedings.
The London-listed firm is working with an unidentified accounting firm on “rapid contingency planning,” according to a regulatory filing Tuesday.
It’s taking the action “with a view to maximizing value in the group,” Finablr said in the filing.
Finablr’s move comes a day after it warned the board couldn’t accurately assess its financial situation and said its chief executive officer was stepping down.
It said Monday the company would implement “a package of urgent measures” to restore stability and had hired compliance consultancy Kroll to review its debt and related-party transactions.
The company found about $100 million in checks dating from before Finablr’s May initial public offering that were used to benefit third parties, according to Monday’s statement.
Finablr’s stock has been hit after NMC Health, a hospital operator started by Finablr founder Bavaguthu Raghuram Shetty, was targeted by short seller Muddy Waters and later found evidence of suspected fraud.
Earlier on Tuesday, it was reported that a fund owned by Abu Dhabi state investor Mubadala had taken a 3.4 percent stake in Finablr.
Finablr confirmed the investment by MIC Capital Partners - owned and managed by Mubadala Capital, part of Mubadala Investment Co.
“They have taken a stake, over the past several weeks, in Finablr, reaching a level of disclosure required by the regulators,” a spokesman told Reuters.