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10 March 2020
BUSINESS

Abu Dhabi’s Daman steps in to help NMC Health pay salaries

The move by Daman shows the extent of troubles at NMC Health which was once a darling of London stock markets and an example of a Middle Eastern success story

Earlier in March 2020, NMC Health this month asked lenders for an informal standstill on its existing facilities/Bloomberg

by Bloomberg

Abu Dhabi’s Daman is helping NMC Health paying overdue bills in what could be a sign the emirate is stepping in to help the beleaguering hospital operator.

Daman, the National Health Insurance Company is speeding up payments to Abu Dhabi-based NMC Health so that the hospital operator can pay salaries and other invoices.

The move by Daman, which is 80 per cent-owned by the Abu Dhabi’s government and the rest by Munich Re, is seen as an intervention by the oil-rich emirate to address a cash shortfall.

Banks have been reluctant to lend to London-listed NMC Health since Muddy Waters Capital accused it of financial improprieties in December 2019. The company earlier this month asked lenders for an informal standstill on its existing facilities.

Daman stated that its relationship with its partners is governed by regulatory guidelines and agreements that stipulate how and when payments are made, adding that it complies with all standards and agreements.

Shares of NMC, founded by Indian billionaire Bavaguthu Raghuram Shetty, have been in freefall since the Muddy Waters report. The stock was suspended on 27 February 2020 and will be relegated to the mid-cap FTSE 250 Index when trading resumes.

 


RELATED STORIES: Daman NMC Health Bavaguthu Raghuram Shetty FTSE 250 Index

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