24th Mar 2020 10:48
(Alliance News) - NMC Health PLC said Tuesday that work on the verification of its outstanding debt obligations is continuing, as the private hospital operator warned that its estimated debt position has now risen to USD6.6 billion.
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 total USD6.6 billion includes the USD360 million convertible bond and USD400 million sukuk. NMC's obligations are comprised of over 75 debt facilities from over 80 financial institutions.
The group said it is continuing to work with advisers to understand the nature of the undisclosed facilities, including the circumstances in which they were obtained.
NMC also announced the resignation of Chief Financial Officer Prasanth Shenoy with immediate effect, following a period of extended leave for ill health. Shenoy has been in the role for three years since 2017, and part of the group for four since 2016.
The group said it will progress the appointment of a new CFO in due course, and in the short term has appointed an unnamed director of Finance from internal resources. Also, PricewaterhouseCoopers will continue supporting the finance function.
In addition, NMC has appointed Matthew Wilde as chief restructuring officer with effect on Sunday.
"We are delighted that Matthew has agreed to join the group at this critical time. As one of the Middle East regions most seasoned CROs, we are certain that his expertise and experience will bring significant benefit to the group as NMC develops a plan to address the group's financial indebtedness," said Interim Chief Executive Officer Michael Davis.
Shares in NMC Health are currently suspended in London as it seeks to unravel its financial and debt position.
Earlier in March, NMC said an independent review of its finances had found evidence of fraud.
In January, NMC commissioned a group founded by former US federal judge and FBI director Louis Freeh, as well as law firm Glaser Weil LLP, to conduct a review into allegations raised by short-seller Muddy Waters.
In late 2019, Muddy Waters attacked NMC over the accuracy of its financial statements.
By Dayo Laniyan; [email protected]
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