EDITOR'S NOTE: Companies are getting hammered with debt that they are hiding from their boards. When the real scale of this liquidity/debt bubble is revealed and banks that backed these risky losses, right along with the insurance companies that have to cover these losses, shareholders will have to eat these losses. We are on the verge of one huge orderly liquidation all across the globe. Gold and silver is the only asset you can truly own that is debt-free!
London-based Finablr, which owns two foreign exchange businesses, found that the overall debt of the company was $1.3 billion, which was much higher than the last reported number of $334 million from last June.
The number does not include the debt of subsidiary Travelex Holdings.
Abu Dhabi-based NMC, also under the same business empire owned by Bavaguthu Raghuram Shetty, had a similar revelation last March when it was discovered that there was debt hidden from the board, bringing its total debt to $6.6 billion.
After that revelation, the company explored options like bringing in new investors or taking the company private. And Shetty’s holding company BRS Ventures, which owns stake in Finablr and NMC, was in conversation with investment bank Houlihan Lokey on options that included debt restructuring.
Read Original Article at pymnts.com