NMC draws up 3-year turnaround plan
NMC Health, the debt-ridden hospital operator, has drawn up a three-year business plan to stage a comeback, the company's acting chief executive officer said.
"The business plan and our roadmap to recovery will take time and it won't be easy. I truly feel we are on the right track to turn the company around" Michael B. Davis, who took over the reign of the troubled healthcare operator in February from Prasanth Manghat , said in a memo sent out to employees.
The London-listed NMC Health, which got entangled in a huge debt trap amounting to $6.6 billion owed to several lenders, has been put under joint administration of Alvarez and Marsal by a UK court following a petition filed by Abu Dhabi Commercial Bank, it largest lender.
"Over the past few weeks many of you have worked with the A&M team in the development of the three-year business plan. This exercise (NMC's service to fight Covid-19) has helped to illustrate not only the important clinical and humanitarian value of our organization, but has also shown the company's financial viability and potential for continued growth," Davis said.
He said NMC employees' collective efforts to fight the pandemic "is providing us with an outline to continue to operate in a safe, effective, and profitable manner for the foreseeable future."
A month ago, NMC Health few to Abu Dhabi a team of experts delegated by A&M from London to oversee its operations following weeks of uncertainty relating to the firm's huge debt levels and undisclosed shareholder dealings.
The scandal-tainted company, the UAE's biggest private hospital group, has seen its stock value plunge by more than 60 per cent since December after short-seller Muddy Waters questioned its financial statements. As troubles worsened, NMC's founder BR Shetty and five other senior officials faced criminal charges of fraud and forgery.
Davis, who was appointed as CEO subsequent to NMC's formal delisting from the London Stock Exchange, said despite the headwinds posed by the financial troubles and the pandemic, NMC managed its payroll every month "with minimal disruption while many companies in the Middle East and around the world have struggled, in some cases even forcing staff to take salary cuts or be furloughed without pay."
"With the skills and experience of our strong and talented leadership teams in the field, the help of our friends and colleagues at Alvarez and Marsal, as well as the support of our benevolent UAE government and Rulers, I truly feel we are on the right track to turn the company around. But I know that our recovery would not be possible without each and every one of you and your strong commitment to the company's success," said Davis.
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