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Sale or reorganisation: NMC’s fate to be sealed in 2 months

Dubai - Troubled healthcare operator says revenues have returned to pre-Covid-19 level.

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The next two months are crucial for the troubled healthcare operator NMC as it will focus on either complete reorganisation the company or put for the sale, the company said in its late note posted on its website.

The company plans to hold its next meeting with all the lenders in late January.

It said revenues have returned to pre-Covid-19 level and exceed business plan as the second pandemic wave is currently having limited impact as the government directs a large majority of patients to its own facilities.

“Uptick in revenue in prior months (August and September) can be attributed to a seasonality factor which didn’t materialise due to Covid-19 when people generally didn’t travel out of the country,” it said in the note.

The healthcare firm achieved gross revenues of $1.25 billion by October 2020 as compared to its business plan of $1.13 billion by October while net revenues reached $1.19 billion as against $1.09 billion.

NMC is also on track for its cost cuts, headcount reduction, site procurement reduction and rent optimisation.

“Net operating cash flow is well ahead of forecast due to strong underlying business performance combined with tight cash controls and working capital management,” it said in its latest note posted on its website.

NMC went into administration in April 2020 after months of turmoil over its finances and its disclosure that it had $6.6 billion in debt, well above its previous estimates.

Its founder BR Shetty and other senior executives left the company and NMC was delisted from the London Stock Exchange. Banks in the UAE and India have filed lawsuits against the previous management for financial irregularities.

BR Shetty, who has been in India, was barred from travelling to the UAE last month and he filed a legal challenge against the move by the Indian immigration authorities from leaving the country.

The company said in its latest note that its total debt and guarantees outstanding are estimated at $6.8 billion, of which $5.9 billion relates to core, $0.76 billion relates to the Sukuk and Convertible and the balance relates to international borrowing.

-waheedabbas@khaleejtimes.com