Finablr reports total net indebtedness of $1,300m

Finablr PLC (LON:FIN), a provider of cross-border payments, FX and payment technology, today provided an update regarding its indebtedness position. This follows the recent appointment of Houlihan Lokey as Finablr’s Independent Financial Adviser.

Houlihan Lokey has worked with Kroll (in its role as independent investigators reporting to the independent directors of the Company) in conducting an exercise with Finablr’s creditors to establish the current indebtedness position of the Finablr Group. The members of the new management team of Finablr have been working closely with Houlihan Lokey and Kroll as part of this exercise based on the information available to them.

The results of this exercise currently indicate that the total net indebtedness of the Finablr Group may be approximately $1,300 million (excluding any liabilities of the Travelex business). This is materially above the last reported figure for the Group’s indebtedness position as at June 30, 2019 and the levels of indebtedness previously disclosed to the Board.

Finablr’s Board cannot exclude the possibility that some of the proceeds of these borrowings may have been used for purposes outside of the Finablr Group.

In March this year, Finablr said a number of factors that were placing significant constraints on its access to daily liquidity and its ability to negotiate longer term financing. These constraints 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, Finablr said back then that the Board had 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.