According to a recent news report in Gulf Business, Finablr Plc, the owner of currency-exchange businesses including Travelex Holdings Ltd. has warned it may not be able to continue operating and said chief executive officer Promoth Manghat will step down. The company, caught up in the widening scandal at a related business, hospital operator NMC Health Plc, said it’s investigating about $100m in cheques dating from before its May initial public offering that were used to benefit third parties.
Because of this, Finablr is unable to accurately assess its financial position, the UK-listed company said in a statement on Monday. “The board is looking to put in place a package of urgent measures aimed at restoring confidence and stability across its stakeholders,” the company said.
Those steps include beginning a search for a new CEO, setting up a committee of independent directors to review Finablr’s liquidity position and hiring compliance consultancy Kroll to review its finances. Finablr will also add to its team and plans to appoint an independent adviser. Its shares were suspended, and Finablr said that for now, it can’t provide some payment-processing services.
Last week, Finablr warned that it was taking urgent steps to address liquidity after fallout from the financial scandal at NMC and travel restrictions around the world because of the coronavirus. Finablr’s stock has plunged about 94 per cent this year because of its ties to NMC. Both companies were founded by Bavaguthu Raghuram Shetty. The hospital company said last week that a probe of financial irregularities revealed potentially fraudulent activity. NMC previously said it had uncovered $2.7bn of debt hidden from its board that was used for unknown purposes.
Finablr said its board had been informed that there aren’t any undisclosed related-party transactions or unrecorded off-balance-sheet financing arrangements, though it was planning to commission an independent investigation into the company’s financial arrangements.
In an article in The National it was disclosed that a fund owned by Abu Dhabi’s strategic investment arm Mubadala Investment Company acquired a minority stake in London-listed Finablr, as the embattled payments company hired an adviser to help assess its financial situation. MIC Capital Partners, an investment vehicle owned and operated by Mubadala Capital, gradually accumulated a 3.4 per cent stake in Finablr, a Mubadala spokesman told The National on Tuesday. “They have taken a stake over the past several weeks in Finablr, reaching a level of disclosure required by the regulators,” the spokesman said.
Finablr was one of the first companies in the region to work with Ripple. In addition at the end of February Finablr had also annouced the launch of Bayan Pay in KSA.
