Second hovercraft glides into Mangalore

Abu Dhabi-based NMC Healthcare has reportedly received bids to sell its distribution unit and will soon be selling it to different parties.

The development comes over three months after NMC Healthcare’s founder and then-chairman B R Shetty stepped down amid allegations of massive fraud. 

The company, which recently laid off hundreds of workers, is offloading stake in the subsidiary as it is considered non-core and requires substantially high working capital to run the operations. In addition, this stake sale will help the company pay off some of its debt

"There are parties who have strong interest in the distribution business. NMC will be offloading the unit soon and that also to different parties," a source said.

"The company is in the process of exploring options for NMC Trading, the group's distribution business, which it has determined to be non-core and requiring substantial levels of working capital. The process should not materially adversely impact distributors' activities, nor NMC Trading's customers," an NMC Healthcare spokeswoman said.

The UK-court has appointed Alvarez & Marsal as administrator to oversee the operations of the debt-ridden hospital operator. The healthcare firm has been caught in a whirlpool of $6.6 billion debt while its senior former high management team is under investigation for financial irregularities.

The UAE Central Bank has direct local banks to freeze all bank accounts of NMC founder BR Shetty and his family members as well as accounts of those companies where he has a stake. The Central Bank move is subsequent to a criminal complaint filed by Abu Dhabi Commercial Bank, which has the largest exposure to NMC Healthcare, amounting Dh3 billion.

As the company faces financial difficulties, Reuters reported that NMC Health delayed May staff salaries and now expects to complete making payments by the first week of June.

The spokeswoman said: "The company has been in regular dialogue with its creditor constituencies through various creditor committees, including the direct bank lenders to its NMC Trading businesses."

Bengaluru, May 2: Former chief minister and Congress leader Siddaramaiah have urged the state government to arrange free-transport facilities to those stranded labourers and their family members to return their native places.

In a statement issued here on Friday, the former chief minister criticised the State Government for having decided to collect bur fare from them, ''three-times more than the regular fare''.

Stating that the migrant labourers, who had been stranded ever since lockdown had been clamped in the entire country are not in a position to pay for their travel, Siddaramaiah urged the state government to treat them with human face.

Belagavi, 13: In a shocking development, Karnataka has reported its first COVID-19 relapse with a 50-year-old Tablighi Jamaat convention attendee in Belagavi testing positive days after being discharged.

The State health officials confirmed that P-298 from Kudachi, who had recovered and was discharged, has suffered a relapse. He has been re-admitted to a designated hospital in Belagavi.

The patient was initially admitted on April 15 and recovered, testing negative twice on April 30 and May 1. The tests were done at the National Institute of Virology (NIV), Bengaluru, and the National Institute of Traditional Medicine (NITM), Belagavi.

Despite recovering, his treatment continued in the ICU for other comorbidities, especially cardiac issues. He was discharged on May 4 and quarantined at an institutional facility in Kudachi.

However, he developed symptoms again and was tested for COVID-19 again on May 5 at NITM, Belagavi. The result came back positive. He was re-admitted to a hospital, and on May 6 a second test was done at the Belagavi Institute of Medical Sciences. Again, he tested positive.