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Finablr appoints adviser to examine future options

By Frank Prenesti

Date: Thursday 09 Apr 2020

(Sharecast News) - Travelex owner Finablr said it had appointed Houlihan Lokey to advise on options for the company including a debt restructuring, capital raise or asset sale.
Finablr warned last month that it was preparing for potential insolvency, while operations of its unit in the United Arab Emirates (UAE) were seized by the country's central bank.

It also revealed that $100m (?80m) in cheques may have been used as security for financing arrangements for the benefit of third parties.

The company's problems started when US shortseller Muddy Waters mounted an attack on NMC Health over its corporate governance. These were compounded by a malware attack on Travelex's computer system and the collapse in air travel caused by the coronavirus pandemic. Both firms were founded by Indian billionaire BR Shetty.

Ernst & Young (EY) quit as Finablr's auditor last month over concerns about corporate governance at the troubled foreign exchange firm.

EY had been seeking changes Finablr's board, and cited worries over recent events at the company and NMC Health, where third party loans, undisclosed cheques and off balance sheet debt have been revealed.

Trading in Finablr shares was suspended earlier this month after the company warned it was preparing for potential insolvency.

Houlihan Lokey specialises in mergers and acquisitions, capital markets, financial restructuring, and valuation.

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