NMC hires Moelis, calls for standstill on loans

NMC Health said it had has hired investment bank Moelis to advise on a debt restructuring and asked lenders for an informal “standstill” to stabilise the troubled company's finances.

The Gulf healthcare operator said it had also appointed PwC and Allen & Overy as operational adviser and legal adviser respectively “with immediate effect”.

Moelis will support and advise on NMC's discussions with its lenders, while PwC will assist on liquidity management and operational measures, the company said on Monday.

“The informal standstill includes a request to lenders not to exercise any rights and remedies that may arise from any current or future defaults under the group's finance documentation.”

Rating agency Moody’s last week said uncertainty surrounding NMC’s share ownership “could trigger a change of control and lead to a debt acceleration” on its main loan facility.

Last week the Financial Conduct Authority started a probe into the company hours after trading in its shares was suspended and days after its chief executive was sacked and finance boss placed on extended sick leave.

Shares in NMC have nosedived since activist investor and short seller Muddy Waters questioned its financial statements and corporate governance, allegations which the company have denied.

NMC also said that founder, the Indian billionaire BR Shetty and former vice-chairman Khaleefa Butti Omair Yousif Ahmed Al Muhairi now hold less than 30% of the beleaguered Gulf healthcare firm.