Finablr Co-Chairman Dr B R Shetty resigns 

Finablr announced that Dr B R Shetty had resigned as a Director and Co-Chairman with immediate effect on 17 August. On the same day the company also received notification from the UK tax authority, HMRC, concerning two of its subsidiary companies, UAE Exchange UK Limited (UAEExUKL) and Xpress Money Services Limited (XMSL), regarding the proposed suspension (for UAEExUKL) and suspension (for XMSL) of their respective business registrations.  Suspension of business registration would result in cessation of business by the relevant entities unless and until the suspension is lifted. Finablr said it intends to work with HMRC to attempt to restore the registrations.

Dr Shetty’s departure is the latest development in what has been a torrid year for the company. In July Finablr appointed Skadden Arps Slate Meagher & Flom (UK) LLP as lead counsel in order to enable the company to investigate historic potential malfeasance within the Finablr Group and any misappropriation of assets, and to facilitate the pursuit of potential claims which are the subject of the investigation. Finablr said then that it had entered into a funding agreement with a third-party funder to cover the cost of the investigation and potentially the pursuit of claims.

That appointment itself followed on from the appointment in April of Houlihan Lokey, a leading global investment bank, as Independent Financial Advisor.  Houlihan Lokey is exploring strategic options for the company including a debt restructuring, capital raise or sale of assets.

Also in April, Dr Shetty issued a personal statement, which said in part: “The preliminary findings provided by my advisors from my own investigations indicate that serious fraud and wrongdoing appears to have taken place at NMC, Finablr, as well as within some of my private companies, and against me personally. This fraud also appears to have been undertaken by a small group of current and former executives at these companies….”

An update from Houlihan Lokey at the end of April suggested that the total net indebtedness of the Finablr Group may be approximately $1.3bn, materially above the last reported figure for the group’s indebtedness position as at 30 June 2019 and the levels of indebtedness previously disclosed to the board.

Finablr is a global platform for payments and foreign exchange solutions with products and services distributed through a global network, underpinned by proprietary technology, using an omni-channel proposition.

Related IBS Intelligence Research

Related Posts