Finablr PLC, a global platform for payments and foreign exchange (forex), confirmed this Monday to the Financial Conduct Authority (FCA) that it is uncertain as to whether it can continue to operate as a going concern.
In a statement filed through the London Stock Exchange’s news service, the company said that: “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.”
Namely, the company said that a number of factors were placing significant constraints on its ability to access daily liquidity. Although the company is now trying to address its current liquidity squeeze, it revealed today that its Chief Executive Officer (CEO), Promoth Manghat, will be stepping down from his role as well as all other directorships and positions within the Finablr Group.
Finablr to commence search for new CEO
Following this announcement, the payments and FX platform will immediately start searching for a new CEO, with Promoth agreeing to stay on board until the company finds a suitable successor
As part of the company’s financial problems, the FCA has agreed to a temporary suspension of the listing of the shares of Finablr PLC, at the request of the payments platform.
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“On 12 March 2020, the Company announced a number of factors that were placing significant constraints on the Company’s access to the daily liquidity the Company needs to manage its business effectively and its ability to negotiate longer term financing,” the company today.
“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.
Furthermore, the Board has also discovered cheques, which were written by Group companies before its initial public offering (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,” Finablr said.