Finablr announces potential insolvency appointment
The Board of Finablr has hired an accounting firm to carry out contingency planning for a potential insolvency appointment.
Finablr PLC (LON:FIN), a provider of cross-border payments, FX and payment technology, today announces potential insolvency appointment.
Following the announcement on March 16, 2020 with respect to Finablr’s present liquidity situation and ongoing discussions with its lending banks, the Board of Finablr today says that it has engaged an accounting firm to undertake rapid contingency planning for a potential insolvency appointment with a view to maximizing value in the Group.
As FinanceFeeds reported, on March 16, 2020, Finablr confirmed that the Financial Conduct Authority (FCA) has agreed to the temporary suspension of listing of the shares of Finablr PLC at the request of the company.
The update was published just a couple of days after the company announced a number of factors that were placing significant constraints on its access to daily liquidity and its ability to negotiate longer term financing. Since that announcement, these constraints have become amplified, Finablr said on Monday. They are having a material adverse impact on the company’s operations, including resulting in the company no longer being able to provide certain payment processing services.
In addition, the Board has been informed of the presence of cheques (written by Group companies and dating back to before the IPO), which may have been used as security for financing arrangements for the benefit of third parties. A preliminary view is that the amount of these cheques totals approximately US$100 million. The existence of these cheques has only recently been brought to the attention of the Board and urgent investigations are ongoing.
As a result of the foregoing events, the Board is unable accurately to assess the financial position of the company and there is a material uncertainty about the Group’s ability to continue as a going concern.