Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Hope they all burn!
Let me guess. Prasanth shetty and 2 buttis
Finally!! No names yet though.
There is an article on Alliance News that the whole board was replaced yesterday by good quality NEDs with objective of sorting governance. Should imagine that explains the positive ADR movement. No suggestion of bankruptcy, and an attempt to steady the ship. Quite a positive move.
How can they default and not tell us ffs!
Yes but they must realise by wiping out shareholders it will cause all sorts of problems and court cases.
I dont expect anything unfortunately
#3 is most important and would indicate they are pulling back on their idea of keeping the listing - I.e. going ahead with shareholder wipeout.
What do these 4 mean?
Any hope we could be relisted id take £1 now lol
Takeaways:
1) NMC hid from shareholders that the company defaulted on 2 February
2) Shetty hid his 10.9m share sale in early Feb
3) administrators are now thinking about delisting
4) FAB has no debt
FAB has since stated that it has reduced its debt exposure to NMC to zero while other lenders have been left with sizeable loans outstanding to the largest private healthcare provider in the UAE.
“Other creditors to NMC won’t be thrilled about this, that’s for sure,” said one banker.
NMC owes almost $1bn to Abu Dhabi Commercial Bank, which last week successfully applied to place the London-listed firm into administration in the UK.
On Tuesday the group’s administrators Alvarez & Marsal said NMC had asked ADCB to lead a committee of creditors, including Barclays and Standard Chartered, to co-ordinate between the company and lenders. ADCB has pledged to make working capital facilities available to the group to allow it to provide critical healthcare as the UAE battles coronavirus.
The newly overhauled board of NMC is considering delisting the company, according to a person familiar with the situation, which would remove costs and complexity. ADCB had previously highlighted the “intrinsic value” of the listing as a means to potentially raise capital, according to documents filed ahead of the administration.
FAB, NMC and Mr Shetty declined to comment.
The period following the February sell-off was marked by confusion and uncertainty over the ownership of the shares owned by major investors including Mr Shetty and his Emirati partners, as well as the size of NMC’s debt.
Regulatory filings revealed an array of previously undisclosed share pledges and trading in NMC was suspended on the London Stock Exchange in late February after the group began a probe into off-balance sheet financing.
Its problems worsened in March when an internal review carried out by former FBI director Louis Freeh revealed additional undisclosed borrowing as it admitted there was evidence of suspected fraud. NMC’s net debt has ballooned to $6.6bn, several times higher than previously reported.
NMC Health’s default on a payment owed to Abu Dhabi’s biggest bank was a trigger for a sharp sell-off in February at the troubled healthcare group, which went into administration last week.
First Abu Dhabi Bank’s demand for an immediate repayment of $20m heaped further pressure on the Middle East-focused group, whose finances have been under scrutiny since an attack by US shortseller Muddy Waters last year.
FAB wrote on February 3 to several NMC operating companies and the group’s Indian founder BR Shetty — all guarantors on a 2018 loan made by the bank to the group — to inform them of non-payment of around $20m in instalments in the second half of January by its main holding company, NMC Healthcare, according to documents seen by the Financial Times.
The bank, the largest lender in the UAE, demanded the immediate payment as the hospital operator was struggling to raise funds to meet its February payroll obligations on time.
On the same day, state-backed FAB started to sell $145m of shares held in the name of Mr Shetty’s investment company BRS International Holdings.
Over the next four days FAB sold 10.9m NMC shares held by BRS, the disposal accounting for a significant portion of the volume of the group’s stock sold during that week with the sell-off wiping a third off NMC’s share price.
NMC said on February 4 that it knew of “no specific reason for the fall”. The group disclosed FAB’s share sales on February 18. Mr Shetty had asked for clarification from the bank to ascertain the legal basis of the transactions, but no response had been forthcoming, the disclosure said.
Hey Deos,
No worries at all, even though I made good money overall trading NMC and yes got slaughtered here for being short/negative, I do hate what’s happened to PIs, and really feel for you and others who have lost large sums of money on this. I hope something magical happens and you do get something back. Please just don’t ever invest all your money into one stock again, it’s never worth the risk no matter how good the company.
In terms of other places to make money right now, as you (and mrD) might have followed I was calling for the market bottom in mid-March. I was about a week too early but I have made some nice profits in the move up since and am taking profits today. I think we will get a W-shape recovery so you have to be patient and wait for us to hopefully get the next dip - that will be the one to buy into. Alternatively might be worth shorting the US market from these levels looking for a retest of the March lows. I personally will wait for the next dip to buy back into and not short.
Hi Adzy,
Any hope mate?
I know alot gave you a hard time but you gave a balanced view and wish I listened to you.
Had.a hellish time lost £170k on Metro, £125k on tlw and £200k here. Then when prizes were rock bottom missed out on wmh, tlw, carnival feel sick with it. Any hints on how to get some monies back
My mistake, current short interest for NMHLY is showing 29,841 as of April 2020. Given the volume has been >400k in both of the last two days we can safely rule out that short covering IS NOT the reason for the recent rise.
And I would add even if you can technically short an OTC, it’s very unlikely that: 1) you’d find a broker to offer you this; and 2) that it would make economic sense given the likely huge margin requirements.
In any case for NMHLY it shows no short interest... so Rastuss your theory on short covering being the reason for the recent rise is probably inaccurate and misleading. Would you agree?
I read that adcb bank or whatever they called sent down this route as they wanted to save the business. Is it the Mubdala fund I think.
There is know doubt it wont be liquidated and the business will carry on as a whole business.
I just think as they’re state owned the UAE will not want all the court cases from shareholders on lost equity on top of all the fraud.
Shareholders wont invest in UAE again and I think its far bigger than saving one business.
Rastuss - I think you’re missing the point of my question/comment. The ADR is not exchange-listed, it trades over the counter only. Hence my question is how do you short an OTC instrument? Of course a regular ADR can probably be shorted in the traditional sense.
And I didn’t say I believed it had gone up due to “inside information” - I have no idea why it’s going up, but it is!
Like I said I just think it’s pointless speculating and creating fictitious ideas that make little sense to justify one’s thoughts
Yes mate its truly shocking and can see the fraud cases going on for some time. Its blatant lies which cant be allowed and be interesting to see about this 4.5 billion.
I was in for 190k but also sold others at 300k loss to buy this as thought it was cheap at £9.50 lol.
Wouldn't mind be a fly on the wall with the meetings currently going with administrators and banks.
Its weird how the biggest lender wanted to buy the business as well.
We may not get anything but there is more hope than last week when they said administration but this isnt a straight forward case due to the background
Rastuss - I was asking how do you short sell an OTC instrument. To my knowledge the ADR is not exchange-listed, only trades over the counter. You can write a swap on an OTC, but I’ve never heard of being able to outright short such an instrument. Please correct me if I’m wrong?
Thanks For that explanation, but it still does not explain why the price would go from $0.13 to $6 in two days. Why wouldn’t it go closer to zero on high volume?
The undeniable fact here is that somebody is buying the ADR and the price is going up on large volume. Why and for what reason? I think we all must just admit we really have no idea. It’s pointless making up fictional explanations to justify it.
Ras
Why you been on this board for ages but not invested??
You are obviously a shorter
Whats 4.5$ in UK £4.
Id take that everyday of the week
and leave it for a year.
They are not stupid if they do a restructure and wipe
Investors out know one will touch it. Also with the fraud if they do that they know some of the big shareholders have deep pockets to take them to the cleaners surely.
UAE reputation is on the line
Even the shorters cant close yet. When they can close rastus do let me know.
The volume on adr is 400,000 thats nearly 10xs the average volume now on 2 days on a trot. Come on administrators DO IT bring it back release 500 million shares. We will take d4e rather than insolvency.
The adr and nmc share price has always traded on a level. To the point the russel index decided to price us on the adr. The adr is up quite simply on the assumption they might bring it back from suspension and do a debt for equity rather than a new entity. Im not getting my hopes up too high... but lets wait and see. Remember rastus most of us have seen 0p already. So whatever you say aint going to move us. But what you say has to make sense. And explaining away the adr movement like you did is just stupidity. Your clutching at straws worse than what we are.
Rastuss - Deutsche Bank is the sponsor, it might well be nothing but I don’t understand your point on ADR technicality? Care to elaborate? Also how can it be short covering, how do you short sell an OTC instrument? Any explanation as to the huge volume?