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1) sadly and very likely, yes, total wipe out for shareholder
2) no protection for shareholders, a zero is the risk you bare when investing in equities.
I assume all the money invested in NMC by shareholder on here have lost their money... and I guess there is no protection for us in UK law...?
My guess is no admin. Adcb will take its application back now it knows nmc will play ball. Just do a d4e release 500 million shares. And then go after the $4.5 billion..
abandon hope all ye who enter here.
(Credit, Dante Alighieri)
All hope is gone.
Let's just wait and see. It isn't over until it's over.
How they would convince them of that I have no idea!
The Company announces that it has been informed by lawyers acting for Abu Dhabi Commercial Bank PJSC ("ADCB") that ADCB has filed an application dated 2 April 2020 with the High Court of Justice, Business and Property Courts of England and Wales, Insolvency and Companies List (ChD) for the appointment of administrators in respect of the Company under paragraph 12(1)(c) of Schedule B1 to the Insolvency Act 1986 (the "Application"), and that a hearing has been scheduled for 9 April 2020.
The Board is in discussions with ADCB and other creditors to address creditors' concerns; to have the application withdrawn; and to avoid the appointment of administrators, which it does not believe would be in the interests of stakeholders as a whole. The resolution is likely to involve material changes to corporate governance of the group and the composition of the Board itself.
If NMC can convince ADCB that they will get their money back they could/might withdraw the application. Let's hope so!
Rns - well that will be that by the looks of things!
It’s pointless doing a calculation based on any stated balance sheet or income statement figures previously given. None of that can be relied on.
The most important question is when and where that loan money has gone. That needs to be the immediate priority, nothing else.
Finding whom NMC owes money is not the problem, trouble will be with finding resources (assets) to pay this debt!!!
Even though NMC will be happy if some unknown creditors "forgive or forget" debt - it is very unlikely outcome as they always come after you in the end.
That's without mentioning that administration process inevitably means asset disposal at significant discounts (aka fire-sale) while vulchers keep pressing troubled victim into more hardships exploiting situation, nobody puts operational costs on hold while trust to company evaporates and revenues tend to shrink.
Putting it all together:
$1.4B equity (theoretically for 209M shares it would be hypothetical £5.3 per share / book value, but accounting for "goodwill" $1.45B = zero)
net $3B unexpected debt (without much assets to balance it),
net pile of running costs,
net asset devaluation due to discounted rip-off sale..
How much of equity it leaves to shareholders? (all - including institutional) ?
It pretty much looks negative over here.. meaning not only shareholders lost everything but even creditors (debt holders) will be left short-handed.
In a future NMC probably will continue to exist in some sort of new shape - but definitely without current shareholders, they won't have anything to do with it..
https://www.thenational.ae/business/markets/uae-companies-declare-exposure-to-nmc-health-as-administration-looms-1.1001712
I believe the legit $2.2bn facility was with FAB and international banks. The remainder is probably Indian banks. Let’s hope that comes out soon. NMC must be aware of it and need to start disclosing this mess.
Then someone needs to ask the questions: WHEN were all these loans made, WHY (under what terms) and WHAT for (what has it been spent on)... it’s hard to make this large of a sum of money just disappear - this is bigger than the 1MDB scandal! There’s got to be some trace here.