NMC case: Probe identifies financers involved in fraud

Waheed Abbas/Dubai
Filed on October 9, 2020 | Last updated on October 9, 2020 at 07.49 am

The investigation is expected to be complete by March next year.

The investigation of NMC Healthcare has identified a number of financers for potential collusion with the previous management that resulted in billions of dollars in losses to the company.

According to an update by the administrators on the troubled group, the investigation has found a prima facie evidence of collusion and detailed reports have been compiled of evidence against those financers. The investigations will also try to trace stolen property.

In September, administrators were appointed to the UAE operations of NMC, which will allow the firm to raise funds and pay the salaries of its employees. Richard Fleming and Ben Cairns of Alvarez & Marsal were named as joint administrators to a group of 36 firms after a hearing by Abu Dhabi Global Markets Courts.

The Administrators' investigation team is working with legal advisors Quinn Emanuel to develop legal strategy to recover losses and obtain compensation for the damage done to NMC as a result of the fraud.

The investigation is expected to be complete by March next year and claims will be launched against the perpetrators.

The administrators' investigation team has compiled evidence which showed that published financial statements were misstated dating back to at least December 31, 2012. "Money and property was misappropriated from NMC, the perpetrators sought to make NMC liable for debt of which it never received the benefit, or sufficient benefit, and NMC's losses are likely to be in the region of billions of dollars," the administrators said.

However, administrators said NMC could be fully recapitalised with $203 million of secured debt and between $325 million and $650 million of Exit Facility depending on what Administration Funding Facility (AFF) lenders decide to do for their refinancing.

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