July 22, 2020 / 8:16 AM / 24 days ago

Skadden to investigate potential misconduct at Finablr

(Reuters) - Payments group Finablr said on Wednesday it has brought in law firm Skadden to investigate any historic potential misconduct within the group and any misappropriation of assets of Finablr.

Finablr, which said in mid-March it was planning for potential insolvency, added it expects forensic experts to be appointed in relation to the probe, which will include a review of payments made and transactions carried out.

The company said it has struck a deal with a third-party funder to cover the cost of the investigation and potential pursuit of claims.

The move comes months after Finablr founder BR Shetty said a probe conducted by his own advisers indicated “serious fraud and wrongdoing appears to have taken place” at Finablr.

Finablr has seen a shuffling of its top management, suspension of its shares on the London Stock Exchange and the departure of its auditor Ernst & Young since U.S. shortseller attacked NMC Health, which shares the same founder as Finablr.

Since then Shetty’s portfolio companies have come under intense scrutiny, with Finablr confirming in April it might have nearly $1 billion more in debt than what it previously reported.

Finablr’s stock plunged over 90% before being halted in March.

Reporting by Muvija M in Bengaluru; Editing by Shounak Dasgupta

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below