Travelex says it is capable of operating separately

Maria Nikolova

Travelex commented on yesterday’s announcement released by its indirect parent Finablr regarding potential insolvency appointment.

Following yesterday’s announcement by provider of cross-border payments, FX and payment technology Finablr PLC (LON:FIN) about potential insolvency appointment, Travelex has issued a statement.

Travelex reaffirms that it continues to take decisions, with input from PwC and supported by its other external advisors, regarding the operation of its business in the interests of all relevant stakeholders. Travelex notes that it has maintained a legal and financing structure within the Finablr Group that is capable of operating separately, on a stand-alone basis.

Travelex claims its operations continue as usual with extensive on-going work and the support of its key financial stakeholders to mitigate the severe challenges created by reduced travel volumes as a result of the COVID-19 crisis.

Finablr, Travelex’s indirect parent, said that it engaged an accounting firm to undertake rapid contingency planning for a potential insolvency appointment with a view to maximizing value in the Group.

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.

Travelex’s performance has been affected by a recent cyber-attack and the outbreak of Covid-19 would have a negative impact on its financial results.

Travelex warned that the effects of the ransomware attack, combined with lower transaction volumes from COVID-19, will reduce its underlying EBITDA for the first quarter of 2020 by £25 million. This has prompted S&P to cut Travelex’s rating saying that the effect would be to make the capital structure deeply unsustainable.

Read this next

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

Retail FX

Prop firm The Funded Trader shuts down, claims relaunch in April

Prop trading firm The Funded Trader has ceased all operations, with claims for a relaunch in the near future.

Digital Assets

Ethereum-Based Tokenized Real Estate Platform USP Launches On Republic

How This Californian Startup Is Revolutionizing Real Estate Investment through Ethereum-Based Tokenization.

Digital Assets

Sui Spikes in Weekly DEX Volume, Joins Top 10 of All Blockchains

March DEX volume on Sui stands at over $2.88B – up more than 49% from February – with decentralized exchange Cetus and wholesale liquidity layer DeepBook leading.

Digital Assets

Prisma Finance suffers $10 million crypto exploit, attack ongoing

Liquid staking protocol Prisma Finance fell victim to a security exploit on March 28, resulting in nearly $10 million in Prisma mkUSD and wrapped stETH being stolen by hackers.

Digital Assets

Masa and LayerZero: Bridging Blockchains for Data Sovereignty

Masa Network is poised to revolutionize the personal data landscape with its upcoming launch as a cross-chain platform, making it accessible on a variety of blockchains right from the start.

Digital Assets

Big Time Generates over $100M in Revenue since Preseason

Innovative game developer Big Time Studios announces that its highly anticipated free-to-play multiplayer action/MMO RPG Big Time, has generated $100M in revenue. According to the team, players transacted a total volume of over $230M, without selling a single token.

Digital Assets

Centralized exchanges are 10 times more popular than DEXs in Western Europe

Western European traders are found to prefer centralized exchanges over decentralized ones as CEX traffic outpaces DEXs by a factor of ten.

Market News

Stock Market Analysis: Is NVDA Losing Its Leadership?

Since the beginning of the week, the S&P 500 Index (US500) has seen a modest increase of about 0.58%, whereas NVDA’s share price has experienced a decline of approximately 3.8%. This recent divergence raises concerns among Nvidia stock investors — could it signify a loss of NVDA’s market leadership?

<