Bank account freezes hit other parts of BR Shetty's empire - The National

Bank account freezes hit other parts of BR Shetty's empire - The National:

The fallout from the collapse of NMC Healthcare and the subsequent freezing of accounts of the company’s founder, BR Shetty, is having a knock-on effect on other parts of his business empire, leaving him unable to pay staff at his Neopharma business and other companies.

In a telephone call with The National, Mr Shetty said he is “really sorry” about the situation that banks are in as a result of NMC Health’s collapse, but added that “without proof, they have taken this action” to freeze his accounts. Banks in the UAE alone have reported an exposure of at least Dh7.5 billion to NMC Health and some lenders have already begun writing down the value of these.

“As a result, all my other companies are suffering,” he said. “Even Neopharma, the salary I can’t pay because of the blockage of the funds.”

“I have not taken one dollar” from NMC Health, which was placed into administration in April with debts of $6.6bn (Dh24.2bn) owed to more than 80 lenders, Mr Shetty insisted.