NMC Rejects Call for Administration as Debt Crisis Widens - Bloomberg:
The crisis surrounding NMC Health Plc widened, as the struggling hospital operator rejected a call to be put into administration and United Arab Emirates’ banks disclosed more than $2 billion of exposure.
Shares in Dubai Islamic Bank PJSC extended declines after the lender revealed its $541 million of exposure to NMC, risking almost half of its annual profit. Abu Dhabi Islamic Bank PJSC also tumbled after revealing it extended $291.4 million to NMC, the U.A.E.’s largest private health-care provider. Abu Dhabi Commercial Bank PJSC slumped after it asked a court to put NMC into administration.
NMC aims to fight any such move, the company said Monday.
The collateral damage from the implosion of NMC and its sister companies is piling up, dragging in the U.A.E.’s top lenders, central bank and health-care system. The fallout comes as banks battle to contain the impact of low oil prices and the coronavirus pandemic. The central bank on Sunday unlocked new aid to support lending and liquidity, and slashed reserve requirements after business conditions worsened at a record pace.
The crisis surrounding NMC Health Plc widened, as the struggling hospital operator rejected a call to be put into administration and United Arab Emirates’ banks disclosed more than $2 billion of exposure.
Shares in Dubai Islamic Bank PJSC extended declines after the lender revealed its $541 million of exposure to NMC, risking almost half of its annual profit. Abu Dhabi Islamic Bank PJSC also tumbled after revealing it extended $291.4 million to NMC, the U.A.E.’s largest private health-care provider. Abu Dhabi Commercial Bank PJSC slumped after it asked a court to put NMC into administration.
NMC aims to fight any such move, the company said Monday.
The collateral damage from the implosion of NMC and its sister companies is piling up, dragging in the U.A.E.’s top lenders, central bank and health-care system. The fallout comes as banks battle to contain the impact of low oil prices and the coronavirus pandemic. The central bank on Sunday unlocked new aid to support lending and liquidity, and slashed reserve requirements after business conditions worsened at a record pace.
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