Crackdown on narcotics: 100 kg of pan masala smuggled from Mangaluru seized

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."

Mysuru, Feb 7: Former chief minister and Janata Dal (Secular) leader HD Kumaraswamy on Thursday said that Chief Minister BS Yediyurappa-led government is not stable and it can fall at any moment.

"Karnataka Government is not a stable one. With the developments taking place, it can fall at any moment," Kumaraswamy told reporters when asked to comment on the Karnataka Cabinet expansion.

Earlier in the day, 10 MLAs including Ramesh Jarkiholi, Anand Singh, K Sudhakar and BA Basavaraja took oath as Cabinet Ministers at Raj Bhawan in Bengaluru.

Bengaluru, Mar 14: Following the footsteps of the neighbouring state Kerala, the state government has decided to deliver groceries to the mid-day meal scheme beneficiaries at the anganwadis.

The state govt has also declared one-week holiday for anganwadis, as a precautionary measure to control the spread of COVID-19 among children.

The respective district administrations have been directed to take necessary steps to ensure that the groceries are delivered to the students’ homes as well.