There has been a development with the Finablr PLC situation, with the company announcing this Wednesday that it has appointed Skadden Arps Slate Meagher & Flom (UK) LLP as lead counsel.
According to a statement filed through the London Stock Exchange (LSE), the United Kingdom-based payments and foreign exchange (forex) platform has appointed the company as lead counsel to investigate potential historic malfeasance within the Group.
Furthermore, the company has chosen Skadden Arps Slate Meagher & Flom to look into whether there has been any misappropriation of assets of Finablr PLC and certain members of its Group.
Skadden Arps Slate Meagher & Flom will also help the platform pursue any potential claims that might arise from the investigation.
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“It is anticipated that forensic experts will be appointed in connection with the investigation, which will include a comprehensive review of payments made and transactions carried out within the Finablr Group. Finablr has entered into a funding agreement with a third party funder to cover the cost of the investigation and potentially the pursuit of claims,” the company said in its statement today.
Finablr situation so far
As Finance Magnates previously reported, in April, the UK company revealed that the total net indebtedness of the Finablr Group might be approximately $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), which may have been used as security for financing arrangements for the benefit of third parties.
This was coupled with what the company called “significant constraints”, which 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.
As part of its statement today, Finablr encourages any party or person with knowledge of any wrongdoings to alert the newly-appointed counsel and aid with the investigation.