Travelex owner moves towards insolvency

Finablr, the FTSE 250 listed owner of foreign exchange firm Travelex, is in discussions with an unnamed accounting firm with a view to going into insolvency 

‘Following the announcement on 16 March 2020 with respect to Finablr's present liquidity situation and ongoing discussions with its lending banks, the board of Finablr has engaged an accounting firm to undertake rapid contingency planning for a potential insolvency appointment with a view to maximising value in the group,’ Finablr said in a statement to London Stock Exchange.

Earlier this week Travelex’s shares were suspended after the company reported that it could not account for $100m (£81m) worth of undisclosed cheques, which is now being investgated by forensic accountants from Kroll.

Travelex has been attempting to reassure shareholders that it is a distinct subsidiary of Finablr and that the business is capable of operating as a stand-alone operation. PwC has been called into support and strengthen the finance team, with a particular focus on company liquidity.

In its latest statement to investors Travelex said it was working closely with ‘input from PwC and supported by its other external advisers, regarding the operation of its business in the interests of all relevant stakeholders. 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’.

The foreign exchange operations ‘continue as usual with extensive ongoing work and the support of its key financial stakeholders to mitigate the severe challenges created by reduced travel volumes as a result of the covid-19 crisis’.

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