The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Just read up on it. Wow. Fascinating.
This line will probably apply to NMC soon enough: “ On 5 July 1991, regulators persuaded a court in Luxembourg to order BCCI liquidated on the grounds that it was hopelessly insolvent”
Sorry I meant BCCI.
If you type in Google “BCCI Fraud“ there are years of articles about the bank. Former ruler of Abu Dhabi was the largest shareholder.
rastuss: i do think you might be right about the share pledge. It might well have been used as collateral for the loans, even though banks wouldn’t normally accept this I’m guessing they were convinced to do so given the “darling” status of nmc at the time.
The pledges were first announced at the beginning of 2018, when price was ~£35 or $7.3bn... at 60% shareholding of Shetty and Buttis back then, that equates to... yes... $4.4bn...
Do you have a link to it?
Having a read of the old BICC case is also interesting!
Leverage on leverage on leverage? There aren’t a whole lot of tangible assets on the NMC balance sheety.
He must have a big plane :))
Rastuss: I’m not as convinced as you regarding enforceability of the loans. You don’t need the top people at the bank to be explicitly complicit in the fraud. The way these things work is that the culture of the banks in a strained/regulated environment is to try make extra fees/income however possible. They will cut corners and turn a blind eye to normal procedures if it means more fees from unsecured and higher rate loans. Again, please do some research on how DB lent to Donald Trump despite numerous previous defaults. It didn’t require the top bank officials to be involved on signing off on ridiculous loans that eventually defaulted. DB didn’t get anything back and Trump and his companies still did ok. Listen to the below if you have time.
https://www.realvision.com/shows/the-interview/videos/deutsche-bank-on-the-brink-of-disaster#.XnGEWCIffh0.twitter
It has all gone very quiet at NMC. The level of “unsecured” and/or “unauthorised” lending here from all of these banks is quite mind blowing. If the balance sheet accuracy is anything to go by goodness knows what the actual revenue and cash flow looks like. The banks are left holding NMC up and have no choice but to pay March salaries in my opinion. If they don’t, presumably staff will walk out and try and get back home or other employment??
Rastus I wanted to lend $5 million from the banks. They asked for collateral I said I own nmc shares. They said take $10 million. Crazy.
If the lenders didn’t exercise proper due diligence and lent over $4.4bn in unsecured loans (on top of the official debt $2.1bn debt) for non group purposes, then that really is the banks’ own problem(s). If the loaned money was specifically spent on nmc then I can understand their claim to recover these loans. But Nobody has announced any such transactions which suggests it was mostly all siphoned off since June 2019... The fact that the banks have been so silent through all of this suggests to be they are probably a guilty associated party with these unauthorised loans and as such may not be expecting much back (otherwise you’d expect much more shouting from the roof tops)!
Still no word on wages, but if they weren't paid we would have heard about it. Cosmosurge seems active still so looks like the company is still operating per normal.
Rastuss... they paid up. And also paying shareholders £10 a share to f off.
Taken from article
"A new twist in the tragic yarn of stricken hospital operator NMC Health. Bloomberg says, citing sources, that Abu Dhabi Commercial Bank has more than $1bn of exposure to the group – meaning it could face big losses. It reports:
The state-owned lender is currently seen as one of the biggest creditors to NMC, according to the people, who asked not to be identified because the information is private. HSBC, JP Morgan Chase. and Standard Chartered also have large outstanding loans to the Abu Dhabi-based company, [sources] said.
Some of the lenders are in talks to set up a committee to discuss ways to recover funds from NMC, according to the people. The company’s known debt pile has more than tripled in recent weeks to $6.6 billion, up from the $2.1bn reported at the end of June, after it successively uncovered borrowings that hadn’t been disclosed to the board.
NMC said this month it found evidence of suspected fraud and debt that had been used for unknown purposes. The company’s chief financial officer and chairman have resigned."
Hopefully one the strategies being discussed is going after Shetty+co for their assets. In a sole restructure, shareholders get wiped out but the banks still take a massive hit atleast 60% loss or greater.
In virtually all scenarios, shareholders are going to take a massive hit.
For anyone who has been stung, and has the liquidity, I suggest buying some oil commodities right now as the price is at an historical low. It may well go lower, but it's not sustainable at current levels. The price is likely to double by the end of the year. Just remember do not use leveraged ETFs or and only use those linked to indexs (not futures contracts).
Ha, yes! Although I was ofcourse just being sarcastic
Rastuss - yes my friend is working on this, and will be releasing some more articles on nmc this week.
The first question anyone should ask him is hows the $5 billion you sleeping on feel! And next question is how you got corona and if not why not! I wish him and his theiving family serious ill health.... screwed me out here! Out played me... freeh/takeover/rebuttal.... all of it was a ploy.
Beggars belief
Me neither cant believe it. The guy has ripped off billions.
As one Arab reporter friend just put it to me, “what a pathetic piece, it’s always the brother or mother as an excuse, but then it’s khaleej times, don’t expect much better”...
Cannot believe anyone is still giving this clown a platform to spout forth utter mince! Seriously, if this is genuine, what a brass neck. Does he think we're all gonna sleep better with his reassuring words?
The only time I want to hear what he's got to say is either from the slammer or the court!
He's just got that face one would never tire slapping!
Ha, yes, Shetty falls ill with COVID-44, a rare variation of the coronavirus illness that has only struck former NMC management and board members... some say the 44 suffix may refer to the illegal $4.4bn of fraudulent debt...
I don’t see how you NMC can “tide over” this...
“Shetty said he is confident that NMC Health, the UAE's pioneering private-sector healthcare initiative and a homegrown global brand, would be able to tide over the current crisis with Belhoul at its helm.”
“Shetty, who is a minor shareholder of NMC Health owning a 5 per cent stake, said he stepped down from active management of the company in 2017 and since then had not been involved with its operations that were directly handled by its former chief executive officer Prasanth Manghat, who sacked by the NMC board as the turmoil at the debt-ridden company escalated”
CEO is an easy scapegoat... let the lame games begin...
Shetty is starting a positive PR campaign by the looks of it, pretending it was all legit - we now know the management of NMC have consistently lied, can't see why they would fess up now.
Rastuss IG are protecting their position against longs - so they have increased margin to 100% incase NMC goes into admin and hence stopping clients removing funds that may be owed to IG on administration. Newbie is short - therefore they should only apply Margin as the closing price before suspension as odds on if NMC comes out of suspension it will be lower. Anyway he has nothing to lose from calling them and finding out his position and I would do that before paying any funds in to IG . I have an IG account I mainly use for share trading and they are good to deal with.
The article has only pasted half of it you may want to read it all
He could be lying who knows
Surprised no one asked him hmmm yeah now about the missin $5 billion!?