ADCB Starts Criminal Process Against Some People Linked to NMC
ADCB Starts Criminal Process Against Some People Linked to NMC
(Bloomberg) -- Abu Dhabi Commercial Bank PJSC initiated criminal proceedings with the emirate’s attorney general against a number of individuals in relation to NMC Health Group.
The lender, one of the hospital operator’s biggest creditors, said: “This action is consistent with the bank’s objective to protect its interests,” according to a statement to the Abu Dhabi stock exchange on Wednesday. It didn’t name the individuals.
NMC was placed in administration by a London court last week after Abu Dhabi Commercial Bank pushed for the process. Shares of NMC, which once had a market value of about $10 billion, were suspended in February amid allegations of fraud and management resignations. Since then, more than $4 billion of undisclosed debt has been discovered.
“ADCB continues to work closely with other creditors and the joint administrators to ensure continuity of NMC Health’s operations and a rapid recovery of the business,” it said in the statement.
Ahmed Alhammadi, a spokesman for the Federal Public Prosecution in Abu Dhabi, declined to comment when contacted by Bloomberg.
The U.K.’s Financial Conduct Authority in February opened an investigation into NMC. The company has said that it’s committed to the investigation and had notified authorities in the U.K. and U.A.E. to determine what action they also consider to be appropriate.
NMC started unraveling in December, when short seller Muddy Waters Capital LLC alleged it had overpaid for assets, inflated cash balances and understated debt. The company uncovered evidence of suspected fraud and debt that had been used for unknown purposes.
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