(Bloomberg) --
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.
Finablr's shares dropped 80% in London trading on Thursday, taking the decline to 97% since the firm's May initial public offering. The company now has a market capitalization of 31.5 million pounds ($39.7 million), down from a peak of 1.5 billion pounds in December.
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 also plans to commission an independent investigation into the company's financial arrangements, though the board “has been reassured” that there aren't any undisclosed related-party transactions or unrecorded off-balance-sheet financing arrangements.
The company'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.
NMC's troubles deepened on Thursday when it said a probe of financial irregularities revealed potentially fraudulent activity. The hospital owner earlier this week said it uncovered $2.7 billion of debt hidden from its board that was used for unknown purposes.
Related: NMC Founder Shetty Loved Challenges, Until They Ate His Company
Finablr has been exploring strategic options including whether to introduce a new investor or pursue a take-private transaction, people familiar with the matter said last week.
To contact the reporter on this story: Amy Thomson in London at athomson6@bloomberg.net
To contact the editors responsible for this story: Giles Turner at gturner35@bloomberg.net, Nate Lanxon, Ben Scent
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