BNPL co humm Group drops as co cites potential exposure via Forum Finance

Humm

22/07/2022 04:40

** Shares of Australian buy-now-pay-later co humm Group
 HUM.AX  down as much as 6.9% to A$0.470, their biggest intraday
pct drop since June 23 
    ** HUM confirmed Sumitomo Mitsui Banking Corp lodged
statement of claim in relation to potential exposure to Forum
Finance  urn:newsml:reuters.com:*:nASXJtNjD
    ** Local media on Thursday https://www.theaustralian.com.au/business/financial-services/smbc-chases-humm-for-33m-in-receivables-linked-to-alleged-forum-finance-fraud/news-story/1d635a2f2d8df5a8634c23c6d10bc5c7
 reported that HUM allegedly failed to properly check a contract
brokered via Forum Finance and is being pursued for A$33 mln
($22.83 mln) by SMBC
    ** Estimate of extent of exposure is reasonable - co
    ** HUM previously said its Managed Services division - which
was shutdown in 2018 - dealt with equipment financier Forum
Finance between 2016 and 2018 regarding equipment finance to
several vendors
    ** In July 2021, HUM estimated maximum historical exposure
to Forum Finance to be A$12 mln post tax  urn:newsml:reuters.com:*:nL3N2OL0V4
    ** In July 2021, Westpac  WBC.AX  filed civil lawsuit
against Forum after discovering potential fraud regarding
equipment leases for its customers  urn:newsml:reuters.com:*:nL3N2OE0RQ
    ** Stock down 43.9% this year, as of last close
    
    ($1 = 1.4455 Australian dollars)  

 (Reporting by Harish Sridharan in Bengaluru)
 ((harish.sridharan@thomsonreuters.com))