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Importantly, still waiting to see if there's any value here but some interesting points have come out today. Appointment of new board and noise from administrators that they may be looking to equity markets to raise capital.
If we assume the administrators know more than shareholders then they probably are already aware of provisional 2019 financials and I suspect they wouldn't be speaking of going to markets to raise capital unless they were good. I'm still of the opinion that health care in middle east is a strong business case and a growth opportunity that stands regardless of NMC's debt burden.
Also, there's nothing that the administrators have said that definitively suggests no value for shareholders.
Was up 300%. Will probably finishe minus 100%.
Nmhly up 200% on heavy volume. Weird. We got hope of anything here or not ffs!
Nmc healthcare in USA market are up over 200% as I write today. Unbelievable how we are totally locked out.
However they would have to find someone to run new NMC in this scenario. I’d be surprised if any senior management and directors currently involved would be considered for Newco roles.
Agreed they will require confirmation of asset “value” from a respected independent source, presumably PWC have been busy over the past few weeks on that piece of work? Unless PWC were just there to complete a bank reconciliation :) clearly nobody in the old Board or management ever did one!
The NMC assets are worth very little without staff running them and managers managing them! The banks have three choices 1. Liquidation 2. Fund NMC and run it themselves or 3. Take a haircut on their loans for Newco equity, warrants etc and negotiate a large new equity cash injection from Capital, Blackrock, The New Zealand guy etc.
At least option 3 has a fighting chance of working but not much (if any) interest for small shareholders sadly.
The administrators wouldn’t have suggested this at all if:
A) the NMC assets weren’t extremely valuable and B) the large institutional shareholders hadn’t been willing to advance significant new equity cash.
Tbh new equity and a debt for equity swap has to happen now or very soon as the longer they wait the more the hospital staff will leave and customers go elsewhere due to the uncertainty etc.
Get NMC back on a solvent basis then go chasing the bad guys! GLA
It is estimated that the more than 80 local, regional and international banks have exposure to healthcare firm.
Dubai -- The board and management of troubled NMC Healthcare should be held accountable for the financial irregularities, said Abdulaziz Al Ghurair, chairman of the UAE Banks Federation.
"Banks have dealt with the exposure professionally and they lent to a company which was listed on FTSE-100 index with world-class regulator and the world's largest audit firm doing their audit. Even if they present their balance sheet today, people will still lend to them," Al Ghurair said during a virtual press conference on Sunday.
"This is a world-class fraud and the management and board members should be held accountable. We should have a different track to handle this company it is not a normal track that we can go," he said.
It is estimated that more than 80 local, regional and international banks have exposure to healthcare firm. The UAE bourses had asked all the listed companies in the UAE to announce their exposure. The UAE banks last week announced nearly Dh10 billion exposure to NMC Healthcare.
Abu Dhabi Commercial Bank has the highest exposure to NMC at Dh3 billion. Dubai Islamic Bank and its subsidiary Noor Bank announced Dh2 billion exposure while Emirates NBD and its Shariah-compliant unit Emirates Islamic Bank disclosed Dh747.34 million exposure.
Moreover, Ajman Bank has Dh151.8 million while Al Salam Bank pegged its exposure at Dh161.5 million. All these lenders revealed their exposure for the first time.
Abu Dhabi Islamic Bank said it had extended Dh1.07 billion in financing to NMC Healthcare, and an additional Dh113.67 million exposure to Islamic bonds issued by NMC. National Bank of Fujairah pegged its exposure to NMC at Dh289.1 million, while Sharjah-based United Arab Bank said its exposure was Dh135.3 million.
Founded by billionaire BR Shetty, most of the senior management of the healthcare firm resigned after it more than $4 billion of undisclosed debt. The company has also been dropped out of the FTSE 100 index.
NMC recently revised its debt position to $6.6 billion, well above earlier estimates.
London's High Court last week placed hospital operator NMC Health into administration, on the application of Abu Dhabi Commercial Bank.
"I know leading bank in UAE have already legal guardian of the company so now management cannot hide anything. The new team will manage and discover what happened," said Al Ghurair.
-- waheedabbas@khaleejtimes.com
You might have spoken too soon: https://www.thetimes.co.uk/article/nmc-health-could-turn-to-market-for-cash-qscx0fjbx
I disagree, there’s no cost to doing a group litigation (against the former directors) and y’all have more time on your hands these days so more power to you I say. Rastuss - I realise it’s a minuscule chance but just wondering why you’re so against it?
Please join the group on Facebook
https://www.facebook.com/groups/2994256800634010/?ref=share
Together we can apply pressure to hopefully get somewhere, I now it's a very slim chance, but we can't let this lot just wonder off with our investments .
Thanks
Best of luck tracking all this lot down in India. I doubt if they have left forwarding addresses!
I really hope they are brought to justice for their unbelievable actions.
There’s got to be more PIs here. Please keep passing the link along.
https://www.surveymonkey.com/r/HZHXVSS
So far 97 replies:
1) 78 people (Or 81% of people) invested during or after December 2019
2) £4.1 million lost in total
3) Total of 327,604 shares held (0.16% of the company)
Will give it a few more days and then please include this information in your emails to the administrators and MPs etc.
Its hotting up here.
Shareholders on top of them and administrators are aware of this .
Unless they are liquidated the shareholders will want paying back
Rastuss another thing - Most of the big usa banks didnt care if people lost everything they wanted profits .inside job interviews the bankers and the hayward professors all tight together --- third of usa renters have not paid rent this month .. Big recession coming ..
What was the FT article saying large IIs will pursue legal action? I read something about unnamed shareholders trying to delay proceedings at the end of an article. Was there anything more precise? For now, administration precludes legal action against the company itself, as per the letter from Stewarts law firm, so this would presumably only be legal action against directors?
Thinking back, why did they need to pledge credit card receivables to ADCB a few weeks ago? Is it because another borrower already had first claim over some cashflows at that time, or because the overall cashflows were not enough to service debt? We do not even know the full hierarchy of creditors in terms of who has first claims over which cashflows. We also need to distinguish between interest and principal. Maybe EBITDA could cover interest, but defaults resulted in principal becoming due, which could not be repaid.
“ The last people the administrators will feel pressure from are the shareholders“
Perhaps, but the FT also confirmed the large IIs are grouping together for legal action too. We shouldn’t underestimate the resources of Capital Group, Wellington Management, blackrock etc.
Rastuss - not necessarily, we don’t know how long for or how exactly this extra debt was being serviced.,. and like I said, it would depend on how much debt is recoverable and what terms any potential new long term debt plan is based on. We simply do not know the assets or earnings potential of the business. Until we do we can’t make any assumptions as it it’s accuracy or otherwise.
Rastuss - at this point I think most people understand this obvious fact you’ve mentioned a few times (I hope). No matter how slim the chances, there really is no harm for those who lost here to put pressure on the administrators. The only hope, as you say, is if they miraculously recover some of that debt. We still don’t know if the EBITDA ($650m) reported on the income statement is incorrect. In the rare event the EBITDA turns out to be real, and if they can recover some of the illegitimate debts and refinance the rest over 10 years then just mathematically it could be serviceable over a long period of time.
Maybe I’m blinded by my huge investment, these are things Im considering
1. This is not like Debenhams the business is not closing parts of the business or liquadating
2. The administrators are global financial experts and have emphasised the business is the most important not creditors. Im sure they’re aware of the Freeh findings
3. The bank did not trust the company to sort out the debts
4. Obvious corruption but companies can not just lie to shareholders as otherwise everyone would do it
The worry
1. The administrators will pay off the banks and shareholders wiped out
2. A new buyer will be found on the cheap with shareholders wiped out
3. How do they get 4.4 billion back
4. The Directors will play numb but they cannot just get away with it
The likes of Shetty and other major shareholders will fight this, it went from £9.38 to £0 overnight due to corruption. The likes of Enron, Marconi, Afren, Debenhams went bust from under 20p
dev09, Your post is pointlessly arrogant, unrealistic and utterly stupid.
Nothing surprises me any more in the money world . Just watch on netflix A 2010 film about the lying bankers how they sell you products and shares and bet against them failing . Nice they are all in with the policticians .What chance you got . I thought i met some people in my years in the scrap game but they might be tought nuts etc but not scum like those lot. Did you know in usa they wanted to regulate derivatives but the usa govt turned it down . IN that film all the big bankers made up to 150 million a year each plus bonus yes that much and still got a bail out chunts!!!! MOST of the money men are liars and scum . WATCH THE FILM INSIDE JOB STARRING MATT DAMON BRILLIANT .We cant win
Sounds like a debt restructuring to me.
Be a bigger kick in teeth if shareholders are wiped out and nothing changes in business. Shetty owns 5% he will not take it laying down.
https://gulfnews.com/business/banking/uaes-nmc-is-not-going-into-liquidation-staff-told-1.1586515944509
We held NMC because we trusted the accounts that were signed off by E&Y. It is totally pathetic to suggest this is down to a 'trading strategy'. Granted I shouldn't have been all-in but nobody, I repeat nobody thought this could happen on FTSE100!