(Alliance News) - NMC Health PLC on Wednesday said it expects to be placed into administration as it is unable to oppose the application filed by Abu Dhabi Commercial Bank PJSC.
"The board has written to the court indicating that, notwithstanding strenuous efforts to address creditors' concerns, it has not been able to secure their alignment and support and has been advised by its counsel that it is not in a position to oppose the application successfully. Accordingly, it expects the company to be placed into administration in due course," the UAE-focused hospital operator said.
On Monday, NMC said it was in discussions with its creditors after Abu Dhabi Commercial Bank PJSC last Thursday filed an application with the High Court of Justice, Business & Property Courts of England & Wales, Insolvency and Companies List, for the appointment of administrators.
NMC, once a FTSE 100 index constituent, had said it was working to address concerns and have the application withdrawn with the aim of avoiding liquidation.
The FTSE 250-listed company has been beset with issues after an independent review of its finances found evidence of fraud. Earlier in March, NMC had estimated that its debts were around USD5.0 billion. Since then, the group has verified a further USD300 million related to known facilities as at June, USD800 million from undisclosed and unapproved facilities as at June and USD400 million in facilities entered after June.
The court hearing is scheduled for Thursday.
Shares in NMC Health are currently suspended in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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