Troubled payments group Finablr's auditor Ernst & Young leaves

Finablr said on Monday Ernst & Young LLP has resigned as its auditor after the company could not accommodate some of the requested adjustments on time that included changes to the composition of the payments group's board.

Ernst & Young did not immediately respond to a Reuters request for comment. Finablr, which owns Travelex, had warned this month that it was preparing for potential insolvency, while operations of its unit in the United Arab Emirates (UAE) were seized by the country's central bank.

The company's problems started when U.S. short-seller Muddy Waters took aim at NMC Health, which shares the same founder as Finablr - BR Shetty. There have been concerns that Shetty's financial troubles are now reflecting on other companies in his portfolio.

Finablr also said on Monday that Abdulrahman Basaddiq and Bassam Hage have stepped down as directors of the company. "I wish to make it clear that I had no knowledge concerning the matters which are the subject of an independent investigation, including the use of cheques," Basaddiq said in his resignation letter.

Earlier this month, Finablr said $100 million in cheques may have been used as security for financing arrangements for the benefit of third parties.