(Sharecast News) - New administrators at troubled Gulf hospital operator NMC Health threw out the old board and brought in four new non-executive directors to handle the group's restructure.
The largest private healthcare operator in the Emirates was forced into administration last week after a court application by Abu Dhabi Commercial Bank (ADCB), one of its biggest creditors.
Previous board members, including executive chairman Faisal Belhoul have been removed, the administrators of the London-listed company said on Tuesday.
Interim chief executive and chief operating officer Michael Brenden Davis would stay on in his dual role but would not have a seat on the board, administrators from turnaround experts Alvarez & Marsal said.
"We formed a new board with extensive restructuring experience to ensure more robust standards of governance in NMC Health," said Richard Fleming, joint administrator of NMC Health in a statement.
"The board has already met to begin the detailed work necessary to create the governance platform in the Group supporting real stability for NMC's operating businesses."
A company-commission investigation last month investigators discovered the company had undisclosed debt of $4bn, taking its total debt to $6.6bn - higher than the assets and equity on the company's books at 30 June.
ADCB has $981m in debt exposure to the healthcare firm. NMC Health, founded by Indian billionaire BR Shetty, has been embroiled in an accounting scandal in recent months, making a series of damaging disclosures after a report by activist investor Muddy Waters last year alleged it inflated cash balances, overpaid for assets and understated its debt.
Last month, the company said debt stood at $6.6bn, substantially higher than the $2.1bn declared in its last filed accounts. A review committee also discovered evidence of "suspected fraudulent behaviour".
Following the disclosures, two joint non-executive chairmen, including Shetty, an executive vice-chairman, a chief executive, chief financial officer and a member of the company's treasury department all left the company.
UAE companies were asked last week by market regulators to disclose their exposure to NMC Health, and to the Finablr Group that is owned by Shetty and its foreign exchange business UAE Exchange - best known for its Travelex brand.
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