Abu Dhabi Commercial Bank has a liabilities exposure of $981 million (Dh3.6 billion) to embattled UAE healthcare firm NMC Health.
The credit was provided to NMC through a combination of facilities extended by ADCB, as well as by Union National Bank and Al Hilal Bank prior to the merger of the three banks in May 2019, ADCB said in a statement on Thursday to Abu Dhabi Securities Exchange, where its shares trade.
“The bank is not in a position to quantify anticipated impairments at this time due to rapidly evolving developments at the NMC Health group,” it said.
ADCB also said it has initiated discussions with NMC and other "substantial creditors to implement appropriate solutions to address the company’s financial defaults, governance and other issues”.
ADCB is among over 80 major local, regional and international financial institutions that extended credit to NMC, which operates in 19 countries. The loans to NMC represent about 1 per cent of the lender’s total assets.
ADCB said it "is deeply concerned by NMC Health group’s recent announcements of previously undisclosed liabilities of over $4bn ... and disclosure of suspected irregular activities and misrepresentations in relation to the company’s past financial activities”.
The bank said it "is committed to assuring the immediate operational effectiveness as well as the long-term sustainability and value of the company".
"ADCB will pursue actions that support these aims in the interest of the bank and key stakeholders of the NMC Health group, including employees, patients, business partners and creditors.”
NMC Health’s problems began in December after the publication of a report from activist investor Muddy Waters Research, which claimed the company had inflated cash balances, overpaid for its assets and understated its debt.
The healthcare company initially denied the claims and in January appointed Freeh Group International Solutions, a corporate investigations company led by former FBI director Louis Freeh, as an independent body to look into the allegations.
Since then, the company has reported that three of its significant shareholders, including the founder BR Shetty, had incorrectly stated the size of their shareholdings.
NMC subsequently revealed its debt was much higher, at $6.6bn, than the $5bn declared previously and the $2.1bn declared in its last filed accounts.
Last month, NMC appointed Ithmar Capital’s managing partner, Faisal Belhoul, as executive chairman after the private equity company based in Dubai took a 9 per cent stake in the firm.
NMC also appointed Matthew Wilde, a partner with PwC for more than two decades, as chief restructuring officer to look into the company’s debts.
In February, the UK’s Financial Conduct Authority launched an investigation into NMC's activities after the company's shares were suspended from trading on the London Stock Exchange.
The company dismissed its chief executive, Prasanth Mangath, in February.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Individuals must register on UAE Drone app or website using their UAE Pass
Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
Upload the training certificate from a centre accredited by the GCAA
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What are the regulations?
Fly it within visual line of sight
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Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
Users must avoid flying over restricted areas listed on the UAE Drone app
Only fly the drone during the day, and never at night
Should have a live feed of the drone flight
Drones must weigh 5 kg or less
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Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
How Filipinos in the UAE invest
A recent survey of 10,000 Filipino expatriates in the UAE found that 82 per cent have plans to invest, primarily in property. This is significantly higher than the 2014 poll showing only two out of 10 Filipinos planned to invest.
Fifty-five percent said they plan to invest in property, according to the poll conducted by the New Perspective Media Group, organiser of the Philippine Property and Investment Exhibition. Acquiring a franchised business or starting up a small business was preferred by 25 per cent and 15 per cent said they will invest in mutual funds. The rest said they are keen to invest in insurance (3 per cent) and gold (2 per cent).
Of the 5,500 respondents who preferred property as their primary investment, 54 per cent said they plan to make the purchase within the next year. Manila was the top location, preferred by 53 per cent.
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The specs
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