NMC.L Share Chat (NMC)

Https://www.hl.co.uk/shares/stock-market-news/company--news/fca-censures-nmc-health-for-understating-debt

A billion-dollar freezing order has been imposed on the former chief executive of NMC Healthcare after a judge said his LinkedIn profile showed he was involved in its accounting.

https://www.thetimes.co.uk/article/nmc-chief-faces-1bn-freezing-order-b0xnbvxxj

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There’s a progress report by the Administrators on the NMC Companies House site. It says the preferential creditors have been paid out in full and they expect some kind of payment to the unsecured creditors but they don't expect anything to be left for the shareholders. They’re suing the auditors!

Only the final paragraph applies to the shareholders here. Shareholders aren’t creditors. It’s regrettably very unlikely that the Administrators will find enough plundered money to meet the claims even of the creditors. Shareholders here have been robbed while the Board looked on. Particularly, you might think, the Chairman of the Audit Committee and his fellow committee members. The former had no financial qualification or experience, but he is a member of the Irish peerage. He’s currently Chairman of an AIM oil and gas company. No one is held to account or even feels any sense of responsibility any more.

This was the news I read on Friday.

NMC came out of administration on Friday, ending two years of uncertainty after debts racked up in an alleged fraud threatened to destroy the United Arab Emirates’ largest private healthcare group.

The scandal at NMC left creditors with large outstanding debts. The company collapsed in 2020 after revealing more than $4bn in previously undisclosed liabilities across NMC and other businesses founded by Indian entrepreneur BR Shetty.

A new NMC group, NMC OpCo Ltd, has been formed from 34 of the 36 companies that were subject to the administration proceedings under the courts of Abu Dhabi’s international financial centre, allowing the healthcare operations to continue to trade normally.

The group is now planning to expand its hospitals and clinics, build new revenue streams and find cost efficiencies.

The UK’s NMC Healthcare PLC and UAE-registered NMC Healthcare Ltd will remain in administration, allowing Alvarez & Marsal to continue its investigation and pursue potential avenues to recover funds for creditors.

The only news I can see is the 29 March announcement that the period of Administration has been extended for another three years - until April 2025. Administrators don’t work for nothing. Even if they find anything, it’s likely to go to pay legal etc. fees and secured and unsecured creditors. Shareholders are at the bottom of the pecking order.

I doubt if we get our money back. Then again, the odds probably more than winning the lottery.

Yuri.F: I’d say the best way to approach this is to write it off to experience. And if you’re ever invested again in something that Muddy Waters or the equivalent writes a similarly scathing report on, get out of it as quickly as you can (or read the report first, if you can get hold of one. A long summary of the Muddy Waters report on this was available free on the internet). Shareholders here have been robbed by an allegedly corrupt, thieving management, who appear to have done a smart job of covering their tracks.

Investors in this have been extremely unlucky. The shareholders, as owners of the company, are not unsecured creditors and it’s vanishingly unlikely that they’ll see any return from it now. They’ve been robbed and there’s no recourse.

NMC had a gap in finances effectively ending up with negative equity and unable to satisfy all creditors.

Company is insolvent, this is not managed wind-down or voluntary liquidation. Since shareholders are sitting at the end of the creditors list - for insolvency scenarios there's no economic interests for shareholders left after administration (asset sale goes at significant discount, process of winding down costs a lot of money by itself with wulchers circling around).
Generally abandon all hopes. (although hospital equipment is still there, buildings are in place, employee still go to work and get salaries, etc., also subsidiaries are not in administration, most keep trading BAU {especially considering boosted demand for services}, some put into liquidation, shareholders were owning holding company, not trading businesses).
Even it if manages to resurface under the same name - (this covid-related crisis has provided drastic boost for demand for hospital services) - this will be under a different ownership structure (not even mentioning what it's very unlikely to immediately become a company publicly traded/listed on stock market straight away, especially considering all this recent reputational damages related to fraud, unless shattered pieces picked/absorbed {for cheap} up by already listed entity).

Best way to approach this is getting hands on administrators report which is available on companies house register (latest/3rd is dated Nov-2021).
Specifically it says (Joint administrators executive summary section):
preferential creditors are anticipated to receive a dividend of 100p in the £ in the next few months.
estimate of dividend prospects for unsecured creditors cannot be made at this time (but there's is an expectation to have some leftovers to pay it later)

Administration period has been extended (granted by creditors) and expected to run beyond 2022.
Next report is expected to be published in April/May 2022

Hi guys i've looked a few places couldn't see any further news to see if its coming back or not. I read somewhere 16th Dec 2021 should be out of administration and trading again. Thanks in advance.

The ADRs appear still to be trading, $100 worth yesterday, possibly a bit of short closing. I don’t know why it’s still treated as an extant share but the reality is, it’s gone. It’s unlikely in the extreme that shareholders in the defunct former entity will see any return of any kind, in my opinion.

You would probably have to wait until it appears on HMRS' negligible value list (for example like with intu properties) here:
https://www.gov.uk/guidance/negligible-value-agreements
to handle it with your SA for tax purposes (if those are not on ISA)

If that the case why are my Shares in NMC still held in my H&L Account? Surely if this is a non-starter these would have disappeared a long time ago? They still seem to be live on system somewhere waiting for a decision on whether to re-float and gain additional funds on a raise? Maybe, not sure but my account still shows the shares as an entity?

Monty74: the new entity that owns the hospitals, health centres etc. of the former NMC Health plc may apply one day for an LSE listing, it’s possible. Though this time the UK regulatory agencies would want to take a very long look at it first. In any case, it won’t be of any but academic interest to the disenfranchised ex-shareholders of the former FTSE100 company, who have lost their investment. That company has been reorganised and now has new owners.

Sorry for my ignorance but will they list on the FTSE again?

Appreciate your reply. thnks

monty74: NMC is coming out of administration on 16 December and control will then be transferred from the administrators, who’ve been, in effect, running it for the past 19 months or so, to the new owners. These new owners are a consortium of creditors - largely the banks who lost a lot of the money they’d lent to the company when it was allegedly robbed/defrauded. They own the company. They may decide to run it for a while themselves or they may sell it or its assets. The people who owned the shares when it was a FTSE100 company have lost their investment.

The whole thing is an outrage. Dishonesty, lax Board oversight, questions over the audit, absence of effective regulation. I feel extremely sorry for small shareholders in it, they were entitled to honest management of their company and a far more effective regulatory environment.

Leisurely: good luck to them with that. As I understand E&Y (which is not very much) their regional offices are all separately incorporated legal entities. The ADRs are at 5c still, on $200 volume. I don’t think the game is worth the candle in terms of legal action from the shareholders’ viewpoint. Still, the no-win, no-fee lawyers know their business best and it won’t cost the disenfranchised ADR holders anything to join the class actions.

I think nmc are trying to take E&y auditors to court in the states for $4bn negligence. So in 10 years when that concludes we can take the same path in a class action.

Those are the ADRs. There may be some wrinkle in those whereby someone thinks he can get some money by suing the intermediaries through whom they acquired them. There are generally no such protections in the UK. The ADRs were at .30 or so until quite recently. They were at .04 on Friday. They’re at 0.10 today. Less than $200 turnover.

Me also would expect a law company to be organising a class action for the shareholders for fraud.But hows this ??? NMC up 150% ???https://finance.yahoo.com/quote/NMHLY/Wayne

Leisurely: NMC went bust, allegedly robbed by some of its senior management. There are scores of banks whose secured loans can’t be repaid as things stand. There’s nothing for the old shareholders. A number of class actions were initiated by law firms on behalf of shareholders in the summer of 2020 in the USA but nothing seems to have happened and it’s unlikely in the extreme that enough of the misappropriated money will be found to pay anything to shareholders. One has to remember that NMC shared some senior management with Finablr, an international payments firm. The NMC scandal began to be unveiled in mid-December 2019 with the Muddy Waters report. At the end of that month there was a massive ransomware attack on Finablr’s accounting systems, for the unwinding of which they allegedly paid a large sum to the hackers a couple of months later. It’s entirely possible, it seems to me, that the culprits may have covered their tracks by means of this systems outage.

Nmc are due to exit administration by Dec 16th. Does anyone know what that means for shareholders (not suspect, but know)?

Also, assuming we get nothing I’d expect a law company to be organising a class action for the shareholders for fraud. Have only seen something at the beginning of last year covering us shareholders though.

Who the f... really cares about ponty!! I'm sure I don't.

Pontys: I don’t know if this would work, but there is still a market in the US for the ADR’s, which are, essentially, shares in the company in a form that allows them to be traded in the US. You could ask your broker if you might close your short position by buying an equivalent amount of these ADRs. I don’t know if they are convertible into shares but it might be worth a try?

Pontys: you must have had a very good profit. This is the trouble when listed companies go bust before you close your position. In a properly organised market, you should have been paid the proceeds of a very successful investment as soon as they were taken over without compensation. Now, with the ADR owners finally smelling the coffee, there’s a reasonable valuation yardstick there.

How do you expect things to develop? I wish you luck with it.

@OofyProsser I used a CFD account, and having shorted, and the con happened, I come out well on top, just a matter for new admin to settle and reorganise before I can cash out!

NMC founder sues EY, banks and execs for $8 bln over alleged fraud
https://www.reuters.com/legal/government/nmc-founder-sues-ey-banks-execs-8-bln-over-alleged-fraud-2021-07-22/

Wrong board!

Trade Spread at Spread after Buy/Sell
Price trade Time Volume Trade Flag

135 11:56:57 134/136 35000 Unchanged until 14:23:04 - 134/135 Buy
135 12:37:41 134/136 50000 Unchanged until 14:23:04 - 134/135 Unknown
135 12:56:29 134/136 100000 Unchanged until 14:23:04 - 134/135 Unknown
135 14:26:35 134/135 115000 Immediate change to 133/136 Buy
300000

Wonder if I'll get some of my £97k back.
I've written it off, but you never know :-)

https://www.aljazeera.com/economy/2021/8/11/abu-dhabi-based-nmc-looks-to-exit-protective-administration

I wouldn’t be hopeful of realising any value from NMC shares. But if you’d like to follow the Earl of Clanwilliam, who was a Board Director and the Chairman of NMC’s Audit Committee while the events detailed in the excellent Muddy Waters report were occurring, he’s currently Non-Executive Chairman of a well known oil and gas entity listed on AIM, called Angus Energy plc, where he continues to weave his magic.

It looks like it could come out of administration, see the investor relations page. Long way to go, but if it’s a going concern it will have more value

I had quite a bit of NMC shares before it went pear shaped. Is it worth nothing now or should we be waiting for the administators to work something out?

Any ideas why and how this still trades in the USA? Currently at around .42 cents a share.

Robinhood?Unless there is any substantial chance of getting any equity value back after the creditors have had their pound of flesh or a potential lawsuit against the auditors or shetty and co?I'm guessing it's robinhood types as otherwise the adrs would have surged way more?Weird that the us haven't suspended the adrs.Anyone know why?

Anyone got a view on why NMC US listing up 45%??

If you have an IBUK account you can buy the ADR - no idea why it is up but the trend is up over the last few weeks now

Looking interesting.

https://www.telegraphXXXXXXXXXX/business/2020/11/06/nmc-health-administrators-take-steps-sue-ey-firms-collapse/

Any interested parties should watch the presentation and move to the bit where it talks about the investigation. They know who the perpetrators are and are building a case to recover assets. But it won’t be quick!!!

https://cf-cdn.nmc.ae/Uploads/InvestorRelations/all-lender-call-presentation-19-aug-2020-e0436784-fae0-4d99-a9b6-2b2b24714448.pdf

False invoices at centre of new NMC probe.
https://www.ft.com/content/a22b75df-f37f-4e4f-a024-3dc1c1df82ee

It's impossible in Middle East to commit this level of fraud without local blessing. Never ever invest in Middle East based companies.

This was broadcast some time ago on arabic aljazeera, it has just been given english subtitles for the interviews. There is a strong suggestion high ranking officials in the UAE were involved in fraud.

https://www.aljazeera.com/programmes/aljazeeraworld/2020/08/br-shetty-missing-millions-200801152710067.html

The rise and fall of B R Shetty and NMC

https://youtu.be/Mac0HJTJgiA

https://www.aljazeera.net/news/politics/2020/7/13/???-??-????-??-??-???-????-??-????

https://www.aljazeera.net/news/politics/2020/7/13/???-??-????-??-??-???-????-??-????

https://www.aljazeera.net/news/politics/2020/7/13/???-??-????-??-??-???-????-??-????

Al Jazeera news reported the arrest of Binay Shetty, son of B R Shetty. Director of Finablr.

https://www.thenational.ae/business/leak-reveals-new-nmc-payments-for-shetty-family-food-business-1.1048677

more payments from NMC to his daughter’s failed food ventures found while he was CEO and Executive Vice Chairman

Tempting to stick in £1k as a punt!

I trade nmhly in u.s.a. so yes this is for the shareholders who are buying cheap shares in hope the company has a positive turnaround and not file chapter 11 or 7.

Thats for the staff not for shareholders.

https://m.khaleejtimes.com/business/local/nmc-draws-up-3-year-turnaround-plan

@NMC shareholders, you may want to sign the petition if not signed yet. This petition itself may not help get the money but more publicity the better. Sad to see so many investors losing their life savings.

https://www.change.org/p/boris-johnson-justice-for-nmc-health-share-holders?recruiter=870311891&recruited_by_id=c8f72170-3fc0-11e8-9823-551d57db26b4&utm_source=share_petition&utm_medium=copylink&utm_campaign=psf_combo_share_initial

https://www.change.org/p/boris-johnson-justice-for-nmc-health-share-holders