KPMG, Travelex’s auditors, have raised alarms about the company’s financial future amid a sale process, citing a dependency on extending £324.8 million in notes by May. Without this extension, Travelex may be unable to meet a £90 million financial obligation, raising doubts about its ongoing viability as a business.
Travelex’s auditors have expressed serious concerns regarding the company’s financial viability as it contemplates the sale of its operations, following a prior pre-pack sale to bondholders four years ago. The external audit conducted by KPMG disclosed a notable reliance on obtaining an extension for £324.8 million in notes by May. Failure to secure this extension would trigger a £90 million repayment obligation.
Travelex, a notable player in the foreign exchange market, has been navigating financial challenges and structural changes since its pre-pack sale in 2020. The current situation reflects alarming uncertainties that could impact the company’s ability to continue operating normally. The ongoing sale process adds further complexity to its financial outlook, particularly concerning funding arrangements under potential new ownership.
In summary, Travelex faces significant uncertainties regarding its future operations and financial sustainability. KPMG’s report highlights critical conditions that could jeopardize the company if funding arrangements are not successfully negotiated. The need for immediate action is apparent to address these concerns and ensure the company’s continued existence in the foreign exchange sector.
Original Source: www.thetimes.com
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