BR Shetty’s Finablr takes urgent steps on liquidity as NMC fallout spreads

Finablr Plc, the owner of currency-exchange businesses including Travelex Holdings Ltd., said it’s taking urgent steps to assess its liquidity position and will appoint an independent financial adviser to weigh options.

The company has been hurt by a “liquidity squeeze at both group and operational business level,” as well as the fallout from NMC Health Plc, coronavirus-related travel restrictions and a downgrade of Travelex’s bonds, Finablr said in a statement on Thursday.

“The company is urgently seeking to complete its assessment of its liquidity and cash flow position and negotiate the steps that are necessary to address its short- and longer-term financing needs,” it said.

Finablr’s stock has been battered because of its ties to troubled hospital operator NMC, which has the same founder, Bavaguthu Raghuram Shetty.

NMC has been subject to allegations of accounting and governance shortcomings by short seller Muddy Waters Capital LLC. The hospital owner this week said it uncovered $2.7bn of debt hidden from its board that was used for unknown purposes.

Finablr has been exploring strategic options including whether to introduce a new investor or pursue a take-private transaction, people familiar with the matter had said.

Finablr’s shares dropped 25 per cent in London trading on Wednesday and have declined 87 per cent so far this year.