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Getty Images A cashier at a Travelex Bureau de Change counts U.S. Dollars in exchange for British pounds, February 19, 2004 in London, England.
It’s been a perfect storm of problems for Finablr, the U.K.-listed owner of currency exchange provider Travelex.
Travelex got hit with a crippling malware attack in January that hurt its operating profit by about £25 million in the first quarter.
The coronavirus pandemic, meanwhile, has shuttered worldwide travel, destroying demand for Travelex services.
Finablr FIN, -5.20% on Monday revealed that at least $100 million in checks written by the company, dating back from before its May initial public offering, may have been used to finance third-party borrowing. Finablr didn’t disclose who wrote the checks and what borrowing it financed.
Finablr has previously said billionaire owner BR Shetty, who also founded NMC Health, has pledged shares in both companies as collateral for loans. NMC Health NMC, +0.00% shares also are halted.
Finablr on Monday said it no longer is able to provide certain payment processing services.
“As a result of the foregoing events, 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,” said Finablr in a statement to the London Stock Exchange.
Promoth Manghat resigned as chief executive, and corporate investigator Kroll has been appointed to carry out a more comprehensive review of related-party transactions and on and off-balance-sheet debt, including the issues regarding the checks.
Finablr shares have dropped 93% this year.
