NMC Succumbs to Administration After Giving In to Creditors - Bloomberg

NMC Succumbs to Administration After Giving In to Creditors - Bloomberg:

Just two years after its market value soared to more than $10 billion, NMC Health Plc was placed in administration by a London court as the troubled health-care provider succumbed to creditor demands. 


NMC, the Middle East’s largest hospital operator, will be run by administrators Alvarez & Marsal, Judge Sebastian Prentis said via videoconference Thursday. It’s a boost for state-owned Abu Dhabi Commercial Bank PJSC, which is owed $963 million. It had pushed for administration in a bid to get management to relinquish control.

Once the Arab world’s top performing stock, the shares of the company founded by Indian entrepreneur Bavaguthu Raghuram Shetty plunged before trading was suspended amid allegations of fraud. Most of NMC’s senior management has resigned since it revealed more than $4 billion of undisclosed debt. The company was also dropped from the FTSE 100 index.

“One of the most striking things about this was that until less than four months ago this company was overtly carrying on business entirely as normal,” Prentis said. “Since then, the wheel has turned and it has kept turning.”