UAE, Abu Dhabi News: NMC Health Insolvency Proceedings Inevitable - Bloomberg:
NMC Health Plc bowed to creditor demands to be placed into administration, saying it’s in no position to contest Abu Dhabi Commercial Bank PJSC’s efforts to install new management.
The troubled Middle Eastern hospital operator said on the eve of a London court hearing that it expects to be placed into administration “in due course.” NMC’s new chairman had resisted creditors arguing that such a move would endanger lives as the coronavirus spreads across the United Arab Emirates.
London-listed NMC, founded by Indian entrepreneur Bavaguthu Raghuram Shetty, had seen its stock plunge before it was suspended from trading 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.
“Although a setback for regional markets, the outcome of this court process will set an important precedent,” said Ahmad Alanani, chief executive of Sancta Capital, a Dubai-based investor focused on special situations in the Middle East. “We hope that an administration will ultimately cleanse NMC’s balance sheet, identify the culprits behind this staggering default and help the business move past these events constructively.”
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