Dubai, Jul 25: The founder of NMC Health, BR Shetty, has had a worldwide freezing order placed on his assets at the request of a lender that claims he has defaulted on a loan of more than $8 million (Dh29.4m).
The order was granted to Credit Europe Bank (Dubai) last month ahead of a claim filed at the DIFC Courts against Mr Shetty, New Medical Centre Trading and NMC Healthcare.
The lender said in its claim they “are jointly and severally liable” for the repayment of money initially secured through a credit agreement in December 2013 and renegotiated in December last year. Credit Europe Bank is an Amsterdam-headquartered institution specialising in trade and commodities finance with operations in nine countries.
The credit agreement was guaranteed by two security cheques which the bank said in its claim were signed by Mr Shetty – one drawn on his personal account and another on the account of New Medical Centre Trading – that have been "dishonoured upon presentation due to insufficient funds".
The bank claimed Mr Shetty “has now fled the jurisdiction of the UAE to India” and that there was a risk of his “substantial” assets in the Emirates being dissipated.
The assets frozen include properties in Abu Dhabi and Dubai, as well as shares in NMC Health, Finablr, BRS Investment Holdings and other companies. It allows for up to $7,000 per week to be spent on “ordinary living expenses and reasonable sum[s] on legal advice and representation”, a DIFC Courts document granting the freezing order shows.
Credit Europe Bank declined to comment when contacted by The National, stating it does not comment on ongoing litigation proceedings. Representatives for Mr Shetty and for NMC Healthcare, which is now being run by administrators Alvarez & Marsal, also declined to comment.
NMC Healthcare was founded by Mr Shetty in 1975 and grew from a single hospital into the UAE’s biggest privately-owned healthcare operator, which employed 2,000 doctors and 20,000 other staff. The company was listed on the London stock exchange and at its peak was valued at £8.58 billion (Dh40bn). However, its shares slumped after short seller Muddy Waters Research issued a report in December 2019 alleging the company had inflated its cash balances, overpaid for assets and understated its debts. This led to a string of damaging revelations by the company, including the fact that its debt was materially higher – at $6.6bn – than the $2.1bn on its balance sheet. NMC Healthcare was placed into administration in April by its biggest creditor, Abu Dhabi Commercial Bank, but its UAE businesses continue to trade as a going concern.
Mr Shetty said in a statement issued in April that he has been a victim of fraud committed by "a small group of current and former executives” at companies owned by him. He said bank accounts were created in his name and transactions were made without his knowledge, and that loans, cheques and bank transfers were also fraudulently guaranteed in his name using his forged signature.
In response to the claim filed by Credit Europe Bank (Dubai) at the DIFC Courts, Mr Shetty says he did not personally guarantee loans made to NMC Trading or NMC Healthcare and that the signatures used on cheques guaranteeing the loans are forgeries. His defence cites the opinion of “Dr Al Bah, an independent, experienced and qualified forensic document examiner”, that someone other than Mr Shetty signed the lending agreements and cheques.
An application by NMC Trading and NMC Healthcare to the DIFC Courts to have the claim against it heard in private for fear of triggering claims by other lenders – the group owes money to around 80 local, regional and international lenders – was dismissed, given that the appointment of administrators at the group and allegations of fraud at the company are already in the public domain.
Both companies have indicated to DIFC Courts that they intend to contest the claim against them.
Comments
Goodman i agree with you,
couple of years ago there was a protest in bangalore opposing the casting of veena malik in dirty picture kannada version. The reasin of protest was not to cast a pakistani actress and replace with india actress but the movie name is dirty picture hahahahah, cant stop laughing
I will go with Kumar and Boom. You people are correct. It is not a public game. We should support for such unbehaviour activity.
The so called BD VHP Etc etc are intolerant except for Sunny Leone
If they call themselves as nationalist, savior of Indian cultural let them demand ban of Sunny Leone films in India and will support them
We are with you. But do it properly
This is definitely a double standard of whoever opposing here.
Because,
First go and stop all type of romantic scenery in your own Kannada film.
Also stop films from any language in Karnataka.
You allow everyone to go to film theatres and watch is happily, with your family, daughters, sons.
For you this is OK to enjoy on the big scree meanwhile when they do it really, you oppose them.
We shall appreciate you if you dare to stop all romantic scene in any film. If you start doing it, we the Muslims will support you and ready to join you.
You need brain to think it and strong heart to dare it.
Well Being a Muslim we never entertain such things.And no Muslim men or Women will go for such things nor we support them.That means we will not Manhandle any one for supporting them.
Let police handle the case.We dont have any rights to pin point others because there are many things which are there to correct within our self.Let us correct them first then will see others.
They will support \PREM CHUMBAN\" but, never \"Kiss of Love\""
LOBY, Just imagine...
If Your own daughters kissing each other in public... Will U like it?
Never ... So dont support such activities which even ANIMALS dont do it openly...
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