IFXPayments said today (Monday) it's considering pulling out of its takeover bidfor foreign exchange (FX) broker Argentex Group, just days after the strugglingBritish currency firm appointed administrators due to funding problems.IFX Payments May Walk AwayFrom Argentex Deal After AdministrationThepayments company issued a statement saying Argentex entering administration is"of material significance" to the acquisition deal. IFX Payments is nowtalking with regulatory panels about invoking insolvency conditions that wouldlet it walk away from the purchase.Back in April,IFXhad built escape clauses into its takeover documents. The companyspecifically said it wouldn't go through with buying Argentex if the targetfirm faced winding-up procedures or other insolvency processes. Thoseconditions now appear relevant given Argentex's current troubles.Thepotential collapse of this deal caps a dramatic few months for Argentex. Thecompany was originally valued at around £120 million when it went public in2019, but a series of missteps left it fighting for survival.From Boom to Bust in ThreeMonthsArgentex'sproblems started earlier this year whenthe U.S. dollar crashed to three-year lows. The London-listed firm had beenoffering "zero-zero" margin arrangements to some clients, essentiallyletting them trade foreign exchange without putting up collateral.When thedollar plummeted, partly dueto new U.S. tariffs and comments from President Trump. Argentex got hitwith margin calls from its banking partners. But since many clients hadn'tposted collateral, the company couldn't cover these demands, creating a severecash crunch.The firmhad to suspend share trading in April and scrambled to find a lifeline. That'swhen IFX Payments stepped in with a £6.5 million emergency loan and later agreedto acquire the entire company for just £3 million, a fraction of its formervalue."Weare very pleased to announce the proposed acquisition of Argentex, which willenhance our regulated capabilities, diversify our product portfolio,particularly in FX risk management and institutional offering, and furtherexpand our geographical reach and network," IFX CEO Will Marwick said atthe time.ArgentexCEO Jim Ormonde resigned immediately when the rescue deal was announced. Thecompany's board unanimously backed the takeover, saying shareholders would get2.49 pence per share, better than nothing if the firm went under completely.Deal Now in DoubtButArgentex's financial situation apparently kept getting worse. The companyannounced Friday it was bringing in administrators to handle its affairs,typically a precursor to either a company restructuring or liquidation.IFX nowsays this administration appointment gives it grounds to invoke the insolvencyconditions written into the original deal documents. The payments firm isconsulting with the UK Takeover Panel about officially triggering these escapeclauses.If IFX doeswalk away, Argentex's roughly 1,000 shareholders could be left with little tonothing. The company had processed over $200 billion in FX transactions across140+ currencies during its better days and maintained offices in Amsterdam,Australia, and Dubai.The sagahighlights growing regulatory scrutiny of risk management practices in thewholesale trading sector. The Financial Conduct Authority has been pushingfirms to improvetheir liquidity planning after several market disruptions.This article was written by Damian Chmiel at www.financemagnates.com.