Finablr to seek to restore registrations of UAE Exchange UK and Xpress Money Services

Finablr PLC (LON:FIN), a provider of cross-border payments, FX and payment technology, today announces that it has received notification from HMRC concerning two of its subsidiary companies, namely UAE Exchange UK Limited (“UAEExUKL”) and Xpress Money Services Limited (“XMSL”), regarding the proposed suspension (for UAEExUKL) and suspension (for XMSL) of their respective business registrations. Suspension of business registration would result in cessation of business by the relevant entities unless and until the suspension is lifted.

Finablr says it intends to work with HMRC to attempt to restore the registrations.

The company also announces that Dr. B R Shetty has resigned as a Director and Co-Chairman with immediate effect.

Let’s recall that, in July this year, Finablr appointed Skadden Arps Slate Meagher & Flom (UK) LLP as lead counsel in order to enable the company to investigate historic potential malfeasance within the Finablr Group and any misappropriation of assets of Finablr PLC and certain members of its group, and to facilitate the pursuit of potential claims which are the subject of the Investigation.

In April, Finablr provided an update regarding its indebtedness position. This followed the 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 results of this exercise indicated 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.