With its indirect parent company preparing for potential insolvency, Travelex has released a statement this Wednesday, stating that it is capable of operating separately, on a stand-alone basis.
“Travelex reaffirms that it continues to take decisions, with input from PwC and supported by its other external advisors, regarding the operation of its business in the interests of all relevant stakeholders,” the company said in a statement seen by Finance Magnates. “Travelex notes that it has maintained a legal and financing structure within the Finablr Group that is capable of operating separately, on a stand-alone basis.”
Situation with Finablr
As Finance Magnates reported, Finablr, the indirect parent company of Travelex, revealed yesterday in an official statement that it has engaged an accounting firm to undertake rapid contingency planning for a potential insolvency appointment to maximize value in the Group.
This follows on from the global platform for payments and foreign exchange (forex) revealing on Monday that it had doubts regarding its ability to continue as a going concern.
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Specifically, Finablr said in a statement filed through the London Stock Exchange’s news service: “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.”
Travelex focus on mitigating COVID-19 challenges
Following the recent announcements from Finablr, Travelex, a forex company specializing in international payments and FX exchange, highlighted that its operations continue as usual as it tries to mitigate the “sever challenges” created by reduced travel volumes in regards to COVID-19.
In addition to the company preparing for potential insolvency, this week, Finablr also revealed 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.
Following the announcement, the payments and FX platform said that it would immediately start searching for a new CEO, with Promoth agreeing to stay on board until the company finds a suitable successor.