Finablr, the owner of currency-exchange businesses including Travelex Holdings, said on Monday that the Financial Conduct Authority of London Stock Exchange has agreed to the temporary suspension of listing of its shares at the request of the company.

The move follows an announcement last week in which the company, founded by Dubai-based billionaire BR Shetty, said a number of factors were placing significant constraints on its access to the daily liquidity it needs to manage its business effectively and its ability to negotiate longer term financing.

“Since that announcement, these constraints have become amplified and have now reached a point where 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,” said a statement posted on the website of the London Stock Exchange.

The board said it 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.

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 $100 million. The existence of these cheques has only recently been brought to the attention of the board and urgent investigations are ongoing.

The board added that it is looking to put in place a package of urgent measures aimed at restoring confidence and stability across its stakeholders.

These include the resignation of Promoth Manghat as CEO with the search for a replacement underway.

UAE Exchange, the money remittance chain, has stopped accepting new transactions effective immediately.

The board has also decided to establish a committee of its independent non-executive directors to carry out a comprehensive review of the company’s liquidity and cashflow management functions, its financial and debt position.

The board is also in the process of discussing with an independent financial advisor its appointment to conduct a review of the company’s debt and cashflow position. A further announcement will be made once the appointment has been finalised.

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Source: arabianbusiness.com