Embattled healthcare provider NMC Health has asked that its shares on the London Stock Exchange be delisted “as soon as possible”.
Trading of shares was suspended at the end of February as the company moved to provide clarity regarding its financial position, which was later revealed to be substantially above the previously reported $5 billion debt and estimated to be around $6.6bn.
Earlier this month, Abu Dhabi Commercial Bank (ADCB), which has $981 million worth of exposure in the healthcare provider, successfully applied to UK courts to have the company placed into administration.
A statement to the London Stock Exchange on Monday said: “Continued listing of the shares in NMC Health incurs significant cost and adds complexity in a situation where decisions need to be made quickly in partnership with the group’s stakeholders. Against this backdrop, the administrators have concluded that delisting NMC Health’s shares is appropriate.”
NMC’s hospitals, medical centres, care facilities and other operations in the group continue to operate, under existing management, with patients continuing to be treated.
Richard Fleming, joint administrator of NMC Health and managing director of Alvarez & Marsal, said: “We are working at pace to ensure continuity of patient care, stability for staff and suppliers and financial security for NMC’s operating companies. Delisting shares in NMC Health is the logical next step, given the situation we have inherited.”
Freeze bank accounts
According to reports, the Central Bank of the UAE (CBUAE) has ordered financial institutions in the country to freeze all bank accounts of embattled Indian billionaire businessman BR Shetty, his family members and companies where he has a stake.
Local media claim an advisory from CBUAE states that information is also being sought on credit facilities extended to Shetty and his family members, as well as safety deposit boxes and details of financial transfers made.
It is understood several companies associated with Shetty, who is currently back home in his native India, have been blacklisted, along with certain staff members.
Exposure
Overall, banks in the UAE disclosed more than $2 billion of exposure, while Citigroup Inc. analysts estimated that the impact on the five UAE banks it covers would total about 23 percent of 2020 profit.
NMC, founded by Indian entrepreneur Shetty, had seen its stock plunge before it was suspended from trading amid allegations of fraud.
With a market value of $2.4bn and total debt of $6.6bn, NMC also faces an investigation by the UK’s Financial Conduct Authority.The Central Bank of the UAE (CBUAE) has ordered financial institutions in the country to freeze all bank accounts of embattled Indian billionaire businessman BR Shetty, his family members and companies where he has a stake.
It comes as Shetty’s troubled NMC Health prepares to be formally removed from the FTSE index today.
An advisory from CBUAE states that information is also being sought on credit facilities extended to Shetty and his family members, as well as safety deposit boxes and details of financial transfers made.
It is understood several companies associated with Shetty, who is currently back home in his native India, have been blacklisted, along with certain staff members.
NMC Health was plunged into administration by a UK court earlier this month following a request by Abu Dhabi Commercial Bank (ADCB), which has $981 million worth of exposure in the healthcare provider.
Overall, banks in the UAE disclosed more than $2 billion of exposure, while Citigroup Inc. analysts estimated that the impact on the five UAE banks it covers would total about 23 percent of 2020 profit.
NMC, founded by Indian entrepreneur Shetty, had seen its stock plunge before it was suspended from trading amid allegations of fraud.
With a market value of $2.4bn and total debt of $6.6bn, NMC also faces an investigation by the UK’s Financial Conduct Authority.
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