Lenders to Shetty’s Pharma Firm Are Said to Start Debt Talks - Bloomberg

Lenders to Shetty’s Pharma Firm Are Said to Start Debt Talks - Bloomberg:

Lenders to Neopharma, the pharmaceuticals business founded by Bavaguthu Raghuram Shetty, are set to kick off talks to restructure 1 billion dirhams ($272 million) of debt, according to people with knowledge of the matter.

Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC, Dubai Islamic Bank PJSC, Emirates Islamic Bank PJSC, India’s Bank of Baroda and Bahrain’s First Energy Bank BSC will meet on Thursday to discuss a proposal to restructure the debt, the people said, asking not to be identified because the talks are private. Creditors will also consider plans to bring in a new strategic investor to Neopharma to keep the business operating, the people said.

Abu Dhabi-based Neopharma, which is linked to NMC Health Plc through Shetty, has been pulled into the scandal surrounding the embattled hospital operator. A report by short seller Muddy Waters Capital LLC alleged that NMC had overpaid for assets, inflated cash balances and understated debt. NMC is being run by administrators Alvarez & Marsal Inc. after more than $4 billion of undisclosed borrowings were discovered.