NMC Health identifies $2.7bn in additional debt bringing total to $5bn
NMC Health has identified an additional $2.7bn (£2.09bn) in debt bringing the group’s total debt position to around $5bn (£3.87bn).
The firm said it had been notified by Moelis and PwC, who it appointed as advisers last week, that the group’s position had more than doubled from the $2.1bn reported at 30 June 2019, to $5bn.
In a statement to the stock exchange, NMC Health said it is “continuing to work with its advisers to understand the exact nature and quantum of the undisclosed facilities.”
“The board believes that some proceeds may have been utilised for non-group purposes.”
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The scandal-hit healthcare provider appointed investment bank Moelis and audit firm PwC to advise on operational issues after the Financial Conduct Authority (FCA) announced it was launching an investigation last month.
The company’s shares have lost more than half of their value since the end of last year when short-seller Muddy Waters questioned its financial statements.
NMC denied any wrongdoing and launched an review into the allegations, led by former FBI director Louis Freeh.
News of the probe came just after the hospital operator fired its chief executive and placed its finance chief on extended sick leave following an ongoing investigation of its finances.
NMC staff were not paid last mont, raising worries over the group’s cash position. The Abu-Dhabi based operator said it expects to make the payments before 16 March, according to Reuters.
Last week the embattled hospital operator was relegated from the FTSE 100 of listed companies as part of its quarterly review.