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."
Comments
Urgently he should visit a psychiatrist!!!! friends would you like to suggest any doctor in mangalore????
Even at this age Yeddi did not lose the sense of humour!
No doubt.. this time BJP will win and yeddy will be our CM.. Jai yeddy. Jai Bharat
BJP is the eonly one party in INDIA taking care of Muslim community. A small list as follow Beef Ban;Head Scarf ban; Objection on prayer call;Objection on religious teaching Madrasa now the latest with TAJ MAHAL.
Since bjp and their leaders are supporting from all corner with Muslim community then how the Muslims go against bjp. for Yeddi and Shobha they will support 100%
I am a muslim, and do not support BJP or yedyurappa
Modi wave we cant see not even in north states. In karnataka congress will win.
Yeddurappa proving he is shameless creature.. How can he say that.. He and his party all against Muslims and still telling that they are in good terms
Yeddy cant even dream of that.
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