This one’s going to be for aficionados

Embattled currency exchange firm Finablr has uncovered $100m (£81m) of secret finance deals and warned it could go bust, forcing trading in its shares to be suspended.

In an announcement rushed out on Monday morning, the Travelex owner said it is running increasingly short of cash and can no longer provide some payment processing services. Boss Promoth Manghat has quit.

The discovery comes just weeks after NMC Health – another company set up by Finablr’s founder BR Shetty – was plunged into a similar crisis.

Finablr also said its board has been informed of cheques dating from before its flotation last year – believed to total about $100m – written by the company as security for loans which benefit third parties….

I shall look forward to the full report on this with just as much relish as I’ll read the Will Hutton and Work Foundation report if they ever release it.

Working out the split between villainy and idiocy will be so much fun.

6 thoughts on “This one’s going to be for aficionados”

  1. It will be interesting if Mr Shetty ever gets to court. One public company without control over its shareholder register and guarantees for 3rd party commitments not known about by the directors is one thing. To be connected with another out-of-control public company is surely more than a coincidence

  2. The great thing about a systemic shock like we’re getting from the nCOVID19 is that companies which are financial weak or trading fraudulently will get pushed to the wall and the financial disclosure required to keep them trading will show up that weakness / fraud for what it is.

    As long as we don’t get across the board bailouts that is.

    We’ve avoided the fallout of the 2008 financial crash by printing easy money and bailing out those businesses which should have been allowed to fall into administration / bankruptcy. This time around we need to let the “creative destruction of capital” work its way through the system.

    Should “British” Airways get a bailout from the UK government just because they are a nominally British company? Might be better to take let it collapse into administration, support it through the current crisis and then either flog it off after things have improved or break it up and sell the airline to the highest bidder.

    Just bailing out the current management doesn’t solve the underlying problems.

  3. I shall look forward to the full report on Javid’s Rape Gang with just as much relish as I’ll read the Will Hutton and Work Foundation report if they ever release it

    FTFY

    @John Galt +1

  4. @Tim W

    I shall look forward to the full Javid report on Rape Gangs with just as much relish as I’ll read the Will Hutton and Work Foundation report if they ever release it

    FTFY

    @John Galt +1

    Note: second attempt as first had a moderated word, maybe this does too

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