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Travelex owner on verge of collapse

Travelex owner on verge of collapse

Trading in shares in Finablr has been suspended and the Travelex owner's CEO has quit as the firm warns there is "material uncertainty" about its ability to continue as a going concern.

The Financial Conduct Authority agreed to suspend trading in Finablr today after shares in the company fell by nearly 10%.

In a statement, the company says it has been informed of approximately $100 million in cheques written by group companies before its listing last year which "may have been used as security for financing arrangements for the benefit of third parties".

This means the board 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".

CEO Promoth Manghat has quit and Kroll has been appointed to carry out an independent investigation. A committee of independent non-executive directors will review the firm's liquidity and cashflow management functions and strategic options.

Finablr founder and majority owner, BR Shetty is also facing problems at his other business, NMC Health, which had to suspend trading after uncovering evidence of possible fraud.

The Travelex business suffered a serious blow earlier this year after a ransomware attack knocked its services out for several weeks.

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