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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

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.

He doesn’t mention the banks! What in God’s name were they doing continuing to lend to this company? One cursory look at the NMC balance sheet by the Abu Dhabi Bank would have told them the net debt number was pure fantasy.

According to his LinkedIn profile, CEO Prasanth Manghat was awarded FD of the year in 2012 by the Institute of CA’s of England and Wales!! I wonder what his specialist subject was?

I would imagine that there have been a few sleepless nights at EY head office in London. Having signed off the accounts in London and giving a clean audit report to all members of NMC they will probably be having urgent (remote) meetings with their PI insurers.
The international banks plus the major US shareholders (Capital, BlackRock Etc) will employ armies of lawyers to investigate this.
The directors legal fees will be covered to a degree by their D&O policy but they have a ton of questions to answer (some more than others!). This collapse is very serious for the region and the Abu Dhabi ruler must have a plan to take over assets otherwise why did his bank push Administration now as it will only reduce realised prices in a fire sale.
GLA in any protracted legal actions.

Administration is needed urgently imo to clear out everyone who was involved in the Shettyera days. Absolutely everyone should be cleared out or should have been already be gone if they are serious about sorting this clusterf__k and getting to the bottom of what actually happens and where the BILLIONS yes billions of dollars went!! It’s all way too slow and way way too cosy for my liking. For goodness sake the amounts missing here make Enron look like a great business!!! What has to happen to get this thing moving???

Agreed but it doesn’t take long to say “you’re fired”
Plus I agree the Board sat around for almost all of March realising that the whole thing was a complete creation that Walt Disney would be proud of... why? The Board should have been slashing the HQ staffing and getting on their knees to the banks to ask forgiveness and a formal standstill agreement. It’s still not clear if the overpaid advisors have achieved this but perhaps not judging by the Abu Dhabi bank’s recent announcement. Also trying to fire sale the Distribution business at only $300m when it was valued at billions of dollars in the plc needs major scrutiny. Trust no one....motto of my day!!

It’s quite breathtaking that this new guy comes along as Executive Chairman with connections to two of the three largest shareholders then receives a public endorsement from Shetty of all people!!! Doesn’t make any changes at all to the Board of Directors or to the management and then publicly calls out a lending bank with a billion dollar exposure to this company. You couldn’t make this stuff up.

Is this an April Fool?

I’ve been queuing up on their website trying to order some of this but none available apparently.

Sorry I meant BCCI.
If you type in Google “BCCI Fraud“ there are years of articles about the bank. Former ruler of Abu Dhabi was the largest shareholder.

Having a read of the old BICC case is also interesting!

Leverage on leverage on leverage? There aren’t a whole lot of tangible assets on the NMC balance sheety.
He must have a big plane :))

It has all gone very quiet at NMC. The level of “unsecured” and/or “unauthorised” lending here from all of these banks is quite mind blowing. If the balance sheet accuracy is anything to go by goodness knows what the actual revenue and cash flow looks like. The banks are left holding NMC up and have no choice but to pay March salaries in my opinion. If they don’t, presumably staff will walk out and try and get back home or other employment??

Sadly it will be.
Some of their businesses (IVF clinics etc) are much in demand and very valuable businesses but won’t sell quickly in these historic times. Plus let’s be honest a large percentage of their reported profit was from the warehouse operation buying from who and selling to who? How do you value that if you are breaking up the group for sale? For goodness sake this is more like Buster Keaton and the Keystone Cops! - That’s ageing me :))
At the risk of boring everyone I again predict this will end up owned by the Abu Dhabi government as it is such a large part of their health service. Quicker the better as far as the employees are concerned!

there are only two kinds of “hope” here.
Bob Hope and no hope.
This guy bought 9% of a worthless company’s equity, he’s perfect to lead that Board of Directors plus nobody else could probably get into the UAE for an interview!!
I’d love to know the identity of the 80 banks that have “loaned” cash to this thing. They will all be having a major write-off sadly. The concept that any of their reported/audited figures are accurate is laughable. The actual profit will be a fraction of what they have reported. Their profit margins were miles above everyone else in the same sector. Plus which major healthcare operating business owns and runs a warehouse supply business??? Duh.

Hopefully they’ve been able to secure a decent deal from the NHS!! Great to see them helping out in these unique circumstances.

chances are that the additional billions of “debt” identified by these expensive investigators is “ultra vires” and not an NMC plc liability at all. Corporate liability can only be assumed by a corporate body (ie. a board of Directors representing a corporate entity). Individuals acting without the authority of a Board of Directors are not authorised in any way so sadly the lending institutions (whoever they are) will have to look to those individuals for recompense.
What is strange is that no bank or financial institution has made any public announcement (to my knowledge) about the lending to NMC. I mean US dollars 2.3billion is quite a big number for any organisation....