UAE’s NMC Health founder hires Houlihan Lokey for debt restructuring, say sources

NMC Health Plc founder, Bavaguthu Raghuram Shetty, hired Houlihan Lokey Inc. to explore strategic options for his holding firm, including a potential debt restructuring or the sale of some assets, Bloomberg reported, citing people familiar with the matter.

The investment bank is working with BRS Ventures Investment to revamp debt and seek potential partners or sell assets from the portfolio, the sources added.

BRS Ventures’ portfolio holds 30 companies including hospital operator NMC Health, and its debts include a loan of about $1 billion, that was used to acquire Travelex Holdings Ltd.

Shetty resigned last week from the board of NMC amidst investor concerns that he faced a margin call and misrepresented his stake in the hospital operator. In December 2019, Muddy Waters Capital LLC expressed its doubts about the financial statements of NMC Health, including its payment for assets, inflated cash balances, profits, and understated debt.

However, NMC denied the report published by Muddy Waters, clarifying that these claims were unfounded.

NMC operates the largest medical network in the UAE and in 2012 became the first Abu Dhabi company to list in London.