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.
Blonde
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Race card
5pm: Maiden (PA) Dh80,000 (Turf) 1,600m
5.30pm: Handicap (PA) Dh80,000 (T) 1,600m
6pm: Arabian Triple Crown Round-1 Listed (PA) Dh230,000 (T) 1,600m
6.30pm: Wathba Stallions Cup Handicap (PA) Dh70,000 (T) 1,400m
7pm: Maiden (PA) Dh80,000 (T) 1,200m
7.30pm: Handicap (TB) Dh100,000 (T) 2,400m
The Details
Kabir Singh
Produced by: Cinestaan Studios, T-Series
Directed by: Sandeep Reddy Vanga
Starring: Shahid Kapoor, Kiara Advani, Suresh Oberoi, Soham Majumdar, Arjun Pahwa
Rating: 2.5/5
Killing of Qassem Suleimani
Killing of Qassem Suleimani
MATCH INFO
Watford 2 (Sarr 50', Deeney 54' pen)
Manchester United 0
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
More from Aya Iskandarani
The biog
Favourite book: You Are the Placebo – Making your mind matter, by Dr Joe Dispenza
Hobby: Running and watching Welsh rugby
Travel destination: Cyprus in the summer
Life goals: To be an aspirational and passionate University educator, enjoy life, be healthy and be the best dad possible.
Asia Cup 2018 final
Who: India v Bangladesh
When: Friday, 3.30pm, Dubai International Stadium
Watch: Live on OSN Cricket HD
