NMC Healthcare administrators anticipate 'dissolution' or 'liquidation' of company

The document showed that 58 groups have debt facilities with total amount of $7.4 billion

NMC Healthcare administrators Alvarez & Marsal, appointed by the UK court, anticipate that dissolution or liquidation are the two most likely exit routes.
"We consider it prudent to retain all the options available to us to bring the administration to a conclusion in due course. However, we currently anticipate that the most likely exit routes will either be dissolution or liquidation. This will be dependent on dividend prospects and/or whether a liquidator would be required to pursue certain legal actions ortake other action within a liquidation process," the administrators said in a document released on Thursday.
The firm, which owns and manages 200 healthcare facilities, was given under the administrators to manage the operations after financial irregularities were reportedly found and criminal cases were filed against the founder and the senior former management.
The document showed that 58 groups have debt facilities with total amount of $7.4 billion
Costs, time of investigation
The document showed that the investigation can take years while the cost for the probe will be met by NMC Healthcare and certain other subsidiaries within the Group.
"It is clear that the scope of the investigation needs to cover a number of years and therefore a substantial amount of data and information is required to be reviewed," said the document.
"This includes very large volumes of accounting entries, some hundreds of thousands, and many company, group and third party documents. These tasks are substantial and the level of work necessary will continue to be extensive. At this point in our work, given the uncertainty of what we might find, it is not possible to provide an accurate prediction of the time and cost required to complete the investigation," it said.
However, it should be expected to require significant resource over a period of time.
Creditors committee
The administrators also proposed that a creditors' committee of three to five members should be established if there are sufficient creditors willing to act. The committee is to be formed to approve, for instance, administrators' remuneration and the payment of unpaid pre-administration costs etc.
-waheedabbas@khaleejtimes.com