Finablr (owner of Travelex)

[wjw22]

Finablr (owner of Travelex) had some news to announce today.

https://www.investegate.co.uk/finablr-plc--fin-/rns/pdmr-notification/202001241000348631A/

and

https://www.investegate.co.uk/finablr-plc--fin-/rns/statement-regarding-share-price/202001241803249240A/

I went short at 128.88 after reading how badly things were going with the Sodinokibi attack on Travelex.

https://www.theregister.co.uk/2020/01/08/travelex_update/

https://www.computerweekly.com/news/252476624/Travelex-begins-to-restore-foreign-exchange-services-two-weeks-after-Sodinokibi-attack

The Travelex website has been down for over three weeks.

I think Finablr is a house of cards.

[wjw22]

https://investors.finablr.com/en/reports-and-releases/regulatory-news/

Quote

Finablr is currently taking urgent steps to assess accurately its current liquidity and cashflow position, which has been adversely impacted by a number of factors:

• travel restrictions imposed to limit the spread of Covid-19, which have reduced demand for its foreign exchange and payment services and has restricted the movement of physical currencies that the company needs to operate its businesses;
• the recent credit downgrade of Travelex's bonds; 
• a liquidity squeeze at both Group and operational business level; and 
• adverse perceptions in the market that the circumstances surrounding NMC Health PLC (the management, operations and finances of which are independent and separate from those of the Company) are relevant to Finablr, which have exacerbated current levels of stress on the Company's cashflow position.

 

These factors place significant constraints on the Company's access to the daily liquidity the Company needs to manage its business effectively and its ability to negotiate longer term financing. Due to the fast-moving nature of the events and circumstances referred to above, the Company is urgently seeking to complete its assessment of its liquidity and cashflow position and negotiate the steps that are necessary to address its short- and longer-term financing needs. 

I think this is the endgame.

[wjw22]

and the shares are suspended.

[wjw22]

$1 billion in hidden debt.

[wjw22]

Investegate: Offer for Finablr Limited

No word on the price, but presumably it will only be a notional amount.

Also presumably the stock will delist and this situation will apply:

https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/market-details/what-happens-if-the-stock-i-am-trading-delists

[wjw22]

I'm short Finablr.  The shares have been suspended from LSE for almost 2 years.  While the shares are suspended I can't close my position and I'm paying overnight funding charges.

Does anyone have any ideas about what I can do?

[AndaIG]

Hi @wjw22

Thanks for the query. 

Please see the following link: https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/market-details/what-happens-if-the-stock-i-am-trading-delists

You can call our helpdesk and request for the position to be closed at a price of zero. 

All the best, 

Anda

[wjw22]

Thank you @AndaIG.

[KRAI]

 @AndaIG @wjw22 I've just made this query and been told that you can only close long positions in Finablr not short positions. For short positions I was told by IG that you have to wait until Finblr relists to close it; so if Finablr never lists again your short position will remain open forever? 

[KoketsoIG]

17 hours ago, KRAI said:

 @AndaIG @wjw22 I've just made this query and been told that you can only close long positions in Finablr not short positions. For short positions I was told by IG that you have to wait until Finblr relists to close it; so if Finablr never lists again your short position will remain open forever? 

Dear @KRAI,

Thank you for your post.

Please note that if you hold a short position on a delisted stock, we have to wait for the company to finish their delisting process before we are able to remove the stock from your account. Finishing the delisting process could take several years, and this is something that is out of our control.

Thanks,

KoketsoIG

[KRAI]

Thanks @KoketsoIG very helpful! Kewal.