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NMC Health seeks $250 mn fresh funding to stay afloat

The healthcare operator is facing debt allegations

NMC Health, UAE’s largest privately-owned healthcare operator, seeks fresh funding worth $250 million in the midst of a debt business.

Vijay Valecha, Chief Investment Officer at Century Financial, told the media, “UAE banks that have large exposure to the company are likely to finance the debt, as this would help sustain NMC’s business operations which in turn would improve the banks’ chances of recovering part of its outstanding debt.”

It is reported that the healthcare operator has already been in debt of nearly $6.6 billion. The funding request comes at a time when Dr. B.R. Shetty, founder of NMC Health, faces charges from a Dubai court backed by a European Bank.

The faith of NMC Healthcare depends on whether the UAE and international banks will finance the fund in debt because many creditors which had financed the unit earlier are now scrambling to recover their lending.

In the past, NMC Health’s business was going strong and the unit was also listed under the London Stock Exchange in 2012. Things got worse when the reports highlighting the problems of the business were revealed. The reports said that the healthcare’s finances were under problems such as internal investigations ensued and led to a series of revelations of corporate excesses, and the running up of debts, etc.

According to Mr Shetty, he claims the financial mishandlings as a failure by the former top-level officials of NMC Healthcare.  He also said that once flights resume from India, he would fly back to Dubai.

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