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.
Instead of forming action groups and trying to get back the money you will never see, focus on your trading strategy and think why you ended up holding NMC. Most of you guys need to quit trading before you lose more money. Good luck;)
I've joined. Together we are stronger.
Please join us class action group
NMC Health share holders action group on Facebook
where is the link.
Please join our Facebook group NMC Health Share holders action group
We were lied too blatantly
Someone has to be accountable otherwise why a stock market and governance
There is a Facebook group NMC health share holders action group we can share info
Where are these?
Any new deal when someone will take
Over minus the fraud and debt will happen.
Will it ever be relisted though
I can see alot of court cases here
He doesn’t mention the banks! What in God’s name were they doing continuing to lend to this company? One cursory look at the NMC balance sheet by the Abu Dhabi Bank would have told them the net debt number was pure fantasy.
Lenders should be prepared to extend the ten year consolidated loan even further depending on the recovery process. It is important to get the patient out of ICU, don’t mind the pun, and given the critical role health care plays in the country and region it is likely down the road strategic long term investors including government entities will emerge. The health care model is good and it would seem that BR and his cohorts were smart not to cripple that part of the company. Why would they? It was the cash cow they could leverage to take unrecorded loans. While these remain allegations it would seem in time more details will emerge of the massive hole that has been left in the company.
If banks want to be short sighted and seek a forced liquidation I suspect that there will be enough eager investors to pick up select health care assets. However the realised values will be no where near the level of he current exposure. A forced sale might well be the eventual course that this saga will take, however of all the options it will more than likely be a very painful process.
To long time residents of UAE NMC and the name of B R Shetty were hallowed as a rags to riches story that Emaratis and expatriates both alluded to with pride. That success story has crashed to the ground amid allegations of fraud, deception, and left a gaping hole in the financial stability of the NMC group. Considering it’s future being torn between a forced liquidation and court administration leading to some semblance of normality it is important to understand how all this happened.
Only a few days ago B R Shetty was interviewed by a Dubai based newspaper and all he had to say was wish the newly appointed Chairman the best. The reporter did not bother to ask what B R, as he was commonly known, thought of the debacle of his mighty empire? How could $4 billion plus of loans not only not be recorded in the books of the company but the proceeds used for ventures of related companies? With Central Risk data on each borrower available did not the lending banks reconcile their exposures with the central risk data? How much of this lending by banks, especially in the UAE was name lending because it was BR and how could it go wrong? The Board of the company had stalwarts from auditing powerhouses who after retiring were serving on the Board of the company. Surely was their experience not available to create compliance within the company?
Bankers who piled in such colossal debt, $6 billion of it, of which $4 billion was unrecorded, cannot plead ignorance to the situation. We are not talking of a 10% misreporting of debt but a misreporting of over 200%? One of BR’s modus operandi was to cultivate bankers within different banks who were sold on the BR story and credit compliance may have been out aside to please the man. The authorities will need to do a massive forensic exercise into the lending process and credit decision making in the case of the exposure to BR and his group of companies.
This brings one to what is the solution. Someone once said that when banks have over lent to a company then they only hurt themselves in enforcing a liquidation. The total worth of the group is perhaps $2 billion with a forced sale value of perhaps less than half of that. Banks will lose a great deal by being stubborn about this settlement. A white knight buying the business, which in the long run can become solvent, is unlikely given the current situation.
Thus in my view the banks should agree to roll their exposures into a consolidated ten year loan with all lenders agreeing to inter-creditor agreements. A board including major lenders and industry experts should be created and a recovery path be worked out. Side by side actions to recover the funds diverted to related companies should begin in earnest and quickly. All $4 billion of unrecorded debts could not have just disappeared without creating an asset trail.
Agree how can shareholders be shafted like this after all the blatant lies. Dont think current shareholders will take it laying down
Deos, the way I read it, the administrators will sell the 'business' to a new set of shareholders and use the proceeds to pay the local tax and then other creditors who are likely to get only a percentge of what they are owed. This will leave zero for existing shareholders unfortunately.
According to his LinkedIn profile, CEO Prasanth Manghat was awarded FD of the year in 2012 by the Institute of CA’s of England and Wales!! I wonder what his specialist subject was?
Add me to the group pls. Requesting is pending currently.
Do you have an email.
Yes thats why so many invested so much because it was UAEs number 1 healthcare provider.
The new guy tried to sort out the creditors but they were not keen. They will not be able to just ditch the shareholders at £0 and start again under a different company surely.
Surely any new buyers will have to offer the shareholders shares in new business especially as many involved are old Directors. Shetty still has 5% and alot of the shareholders are major players in the business which will carry on
We all should contact Administrators..
Only hope here:
"This is a slightly unusual case given that NMC Health plc is the holding company for the largest private healthcare group in the UAE and we are in the middle of a global pandemic with NMC hospitals and medical centres being used to treat Covid-19 patients in the UAE. As the enclosed statement makes clear the Administrators are keen that NMC Hospitals and medical centres continue to function as normal so their current activities remain unchanged."
Stewarts Solicitors sent me this:
Not Good
Dear Mr White
Thank you for you enquiry and at this stage Stewarts will not be bringing any claims against NMC Health plc on behalf of shareholders and we set out the reasons below. We understand your anger and concern as the available public information suggests that there has been a large scale fraud at NMC Health plc. We will be continuing to monitor the situation with NMC Health plc and we will keep our website page on NMC Health plc updated (https://www.stewartslaw.com/news/nmc-health-plc-investigating-potential-shareholder-claim/) .
We are not in a position to be able to provide you with legal advice but we do set out below our current observations on NMC Health plc based on publicly available information. The below email does not constitute advice and should only be considered as information to allow you to consider your next steps.
In terms of possible legal remedies for shareholders against the company, the news today (see enclosed company statement) that Alvarez & Marsal have been appointed as Administrators to NMC Health plc means that legal proceedings cannot be brought against NMC Health plc at this time. Under the Insolvency laws of England & Wales there is now a statutory moratorium which means that creditors and others (including shareholders) are prohibited from starting or pursuing legal proceedings against the company while it is in administration.
Under the insolvency laws in England the Administrator’s first objective of any administration is to rescue the company (as opposed to the business that the company carries on) so that it can continue trading as a going concern. If the rescue of the company is impossible, the administrator must aim to achieve a better result for the company's creditors as a whole than would be likely if the company were put into liquidation. If the administrator cannot achieve a better result for creditors as a whole, the purpose of the administration is to realise the company's assets to make a distribution to the company's creditors and only if all creditors (including unsecured creditors) are paid off in full will any distribution be made to shareholders.
The Administrator is predominantly working on behalf of creditors not shareholders and in most administrations shareholders are left with very little or zero value at the end of the administration or any liquidation that may follow.
This is a slightly unusual case given that NMC Health plc is the holding company for the largest private healthcare group in the UAE and we are in the middle of a global pandemic with NMC hospitals and medical centres being used to treat Covid-19 patients in the UAE. As the enclosed statement makes clear the Administrators are keen that NMC Hospitals and medical centres continue to function as normal so their current activities remain unchanged.
Our view is that for shareholders at this moment in time there are no effective legal actions that can b
Never forget it my stock advisor called me Weds night say Freeh found loads more debt it may get suspended. I thought be ok healthcare number 1 then suspended first thing Thurs morning. I had it on a t20 had to sell Metro at £170k loss then Tlw at £125k loss to raise the £200k. Then NMC admin so £500k loss
What are the emails done Stewarts?
I have emailed SFO, FCA, Local MP & Stewarsts. Thinking of emailing to administrators as well. We know probably nothing will work but we can't just let this happen so easily. Hope everyone joining the FB group & emailing to these authorities.
Deos even FIN went to 10p before suspension. Bastardos didnt let us out day after!