Member Info for Castaway

Thanks always

Give the guy a break - always is just adding a bit of distraction for what is a bad situation - and it feels like a damp squid to me!

Shetty is starting a positive PR campaign by the looks of it, pretending it was all legit - we now know the management of NMC have consistently lied, can't see why they would fess up now.

Rastuss IG are protecting their position against longs - so they have increased margin to 100% incase NMC goes into admin and hence stopping clients removing funds that may be owed to IG on administration. Newbie is short - therefore they should only apply Margin as the closing price before suspension as odds on if NMC comes out of suspension it will be lower. Anyway he has nothing to lose from calling them and finding out his position and I would do that before paying any funds in to IG . I have an IG account I mainly use for share trading and they are good to deal with.

No they can't Newbie - even if you were long they cannot close you out until/if NMC goes into admin - you stated your short, You have nothing to worry about, call them and tell them your short and you should get your margin back. If you want you can add funds it won't make any difference to your position - phoning them will though.

Newbie - I would phone IG tomorrow and state you have a short and they should reduce your margin to the normal amount for your trade - but do not add funds!, IG can only take what you put in your account.

Rastuss, maybe Newbie can confirm if he was short or had a short on CFD or spread bet - but either way with NMC suspended and looking in a bad way if he was short he should not have the margin at 100%. I did not try shorting NMC on IG, but in my experience it's usually only possible to short via SB/CFD.
The outcome is more or less that same, if the company goes into admin with a SB/CFD - you get 100% of the short - if you are short of shs then I belive you have to acquire them to close the short - not difficult if they have no value.

Rastuss - as I understand it Newbie has enough margin to cover his current loss, but not enough to cover the 100% margin IG imposed. So his account will show a huge -ve margin - IG probably just put 100% on all positions in NMC when it was suspended as it is very high risk. This stops them losing as much and stops their clients removing cash which may be called to cover the loss on any longs on NMC. I cannot see how they can impose a 100% margin rate on a short though with NMC in it's current state.

Newbie under the new MiFID rules (from a couple of years ago) IG can only take the cash in your account and not demand any more. I would phone them and ask why they have imposed 100% margin on your short when the company is probably bust (or not far off it). IMO you have nothing to worry about, in fact you will probably one of the few who do very well out of this debacle.

Newbie, I would call IG, I can understand if you were long they would want 100% margin - but as your short I would think odds on that if NMC comes out of suspension he s/p will probably be lower, so I would think if you ask IG they will reduce your margin to normal - Odd that a Newbie would be shorting though isn't it? ;-)

Dogger - sorry about your loss, but I doubt MM's give a toss whether a PI is short or long in a company the size that NMC was - OK in a small AIM stock a big PI has an effect but on a premium listed multi billion company like NMC it's all II's funds etc. (oh and Shetty and his associates) .The irony is that Shetty fooled so many (including the institutions) for so long!

I missed out IMO NMC is only of value if it is kept as a going concern as there are few saleable assets unless they are in effect sold as profitable hospitals - the value is in the hospital staff/management - most of the sites are leased and so is most of the equipment, so I am assuming in a fire sale the assets would contribute under half a $bn - they have to keep NMC running to sell on or slowly get their capital back as the business generates profits.

Rastuss - I agree (again) banks will take a massive haircut, but if they don't they will get little or nothing back unless IMO NMC is preserved as a going concern - the rationale for this is the BS, there is nothing of any value on it, so therefor the only way the banks get any cash back is to bankroll a restructure and hope to get maybe 25%?.
This new guy is the key - tied to the other largest UAE health care company and head of a UAE II - if NMC was going into admin it would have happened a few weeks ago IMO and they would not have appointed Belhoul

I concur dana and listened to the BBC article you posted https://www.bbc.co.uk/sounds/play/m000gwy8
Whilst this is a crisis if even 1% of the generos funds that the the UK Gov (and other nations and people) have put into fighting Covid-19 were diverted to saving poor people's lives in mainly 3rd world countries it would save many many more lives than CV will take.

Why did Ithmar acquire the shs if they thought NMC was going into admin? - the only possible reason is to have some serious voting rights - they may be prepared to bankroll a restructure as a going concern - they may have got the shs for a bit over nothing or on the proviso the Butti's get a little bit from them as opposed to nothing.
IMO lenders and shareholders get a considerable haircut, but the business continues - makes sense for all parties.

I agree Rastuss - but if it is to be a going concern then shareholders should get something out of it for agreeing to the restructure - as of Feb 26th (the dreaded RNS) I was of the opinion NMC would go into admin, but I think there is hope shareholders will get something out of this, maybe not much but something to vote for the restructure.

That is referring to Informa PLC not NMC

Rastuss I agree that the value of the hospitals is way below reported debt. I was highlighting that if you inspect the accounts the actual value of assets is probably under a $bn - the value is in the hospitals as a going concern - I was making the point that there is no interest for anyone including the lenders to wind up NMC as it is far more valuable running than not.

The only real value in the business is that of a going concern - the assets have little sale value - so keeping it up and running is in everyone's interest.

Presumably if there is a restructuring of debt this will have to be voted for by the shareholders - looks to me that ithmar have acquired those shares for that purpose - lenders will no doubt get a big haircut and so will shareholders, but it's better than admin and nothing.