Troubled foreign exchange and payments business Finablr has uncovered a hidden debt pile of £1.3 billion
The company had its share suspendend in March amid "material uncertainty" about its ability to continue as a going concern. This followed the discovery of $100m of cheques that had not previously been disclosed, and the departure of its chief executive.
Finablr subsequently brought in forensic investigators from Houlihan Lokey and Kroll to comb through its books in an attempt to get to grips with its actual levels of indebtedness.
In a regulatory update, the firm states: "The results of this exercise currently indicate that the total net indebtedness of the Finablr Group may be approximately $1,300 million (excluding any liabilities of the Travelex business). This is 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. The Board cannot exclude the possibility that some of the proceeds of these borrowings may have been used for purposes outside of the Finablr Group."
The debts incurred do not take into account the liabilities of foreign exchange company Travelex, which put itself up for sale last month
"The exercise to verify the Group's indebtedness position is ongoing," the statement continues. "The Company and Houlihan Lokey intend to engage further with the Group's creditors to explore the options that may be available to the Group and its creditors."