NMC Health faces potential ‘dissolution’
Administrators provide updates on investigations, issue stark warning
‘Dissolution” or “liquidation” of NMC Health are the most likely exit strategies before the UK High Court appointed administrators, a document issued by them state bluntly.
“We consider it prudent to retain all the options available to us,” the statement notes.
“This will be dependent on dividend prospects and/or whether a liquidator would be required to pursue certain legal actions … or take other action within a liquidation process.”
The administrators had since April 10/11 initiated a series of meetings with NMC’s lenders and other stakeholders to come up with a strategy.
Hard at work
The update comes after three consultants from Alvarez & Marsal, a turnaround specialist, were appointed by a UK Court in early April. This followed a submission from ADCB Bank, the UAE entity with the highest exposure to NMC Health, that the hospital operator be placed in “joint administration”.
The administrators had since April 10/11 initiated a series of meetings with NMC’s lenders and other stakeholders to come up with a strategy that would see the recovery of some of the $6.6 billion NMC owes banks.
According to a banker associated with the saga, “This is an interim report after three weeks of working with CEO Michael Davis. Their “ongoing strategy” is two-fold — to preserve valuable shareholdings of the company with a view to realising value in due course; and to continue to investigate the affairs of the company and the group to pursue recovery of value.”
Criminal complaints had been brought by ADCB against six officials, including shareholders. The names include Dr. B.R. Shetty, founder and former chairman, and also a former CEO. “Our investigations to date has been designed to ensure that we can build a comprehensive picture of the Company’s position,” the Administrators’ report notes.