Finablr has published an announcement today regarding its financial statements, alerting the public that it will be unable to meet its new deadline of 28th August 2020.
Via a statement published through the London Stock Exchange (LSE), Finablr highlighted that it would be unable to adhere to 28th August deadline and that it will provide an update on the anticipated publication date when it is able to do so.
The company announced on 23rd June 2020 that it had changed its Accounting Reference Date to 28th February. This resulted in the publication deadline of its financial statements at the end of August to be pushed back.
Finablr’s initial accounting reference date was 31st December. The troubled United Kingdom-based payments and foreign exchange (forex) platform did not provide a reason as to why it changed the accounting reference date.
S&P Global Ratings Downgrades Travelex
On Monday, the long-term issuer credit rating on Travelex Holdings Ltd was downgraded by S&P Global Ratings to ‘D’ (default) down from ‘SD’ (selective default), following the completion of its debt restructuring.
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Finablr is the indirect parent company of Travelex. Following the potential insolvency of Finablr, Travelex announced back in March of this year that it was capable of standing on its own.
“We also lowered our issue rating on the £90 million revolving credit facility (RCF) to ‘D’ from ‘CCC’. The issue rating on the €360 million senior secured notes remained unchanged at ‘D’. We subsequently withdrew all our ratings on Travelex at the issuer’s request,” S&P Global Ratings said in a statement yesterday.
Background on the Finablr Situation
Today’s announcement follows on from a string of complications. As Finance Magnates previously reported, in April, the UK company revealed that the total net indebtedness of the Finablr Group might be in the region of $1.30 billion.
This followed on from the Board of Finablr discovering cheques which were written by Group companies before its initial public offering (IPO). These may have been used as security for financing arrangements for the benefit of third parties.
Furthermore, this was coupled with what the company called ‘significant constraints’ that were only magnified by the coronavirus pandemic. As part of the constantly evolving situation, in recent months, the FX platform’s Chief Executive Officer and Chief Financial Officer have stepped down.