NMC Health has drawn up a 3-year turnaround plan and it would be able to make a comeback, believes the acting CEO, Michael B. Davis and said so in a memo sent to the employees.
“The business plan and our roadmap to recovery will take time and it won’t be easy. I truly feel we are on the right track to turn the company around”, he said. Michael B. Davis took over the position of CEO from Prashanth Manghat in February.
NMC Health, a small clinic founded by Indian BR Shetty grew to a large private healthcare provider of UAE in four decades. But in December last year its undisclosed debts and cash positions were questioned and brought to light by short-seller Muddy Waters. Since then, its stock values plunged by more than 60% and its senior officials including BR Shetty faced criminal charges.
The crisis was made worse by the fact that it happened during the beginning of COVID-19 in the region. The healthcare operator owes $6.6 billion to its lenders. The Abu Dhabi Commercial bank, which is its largest lender filed a petition which has led the business to be put under the joint administration of Alvarez and Marshall by a UK Court.
“Over the past few weeks, many of you have worked with the A&M team in the development of the three-year business plan. This exercise (NMC’s service to fight COVID-19) has helped to illustrate not only the important clinical and humanitarian value of our organization, but has also shown the company’s financial viability and potential for continued growth”
He said NMC employees’ collective efforts to fight the pandemic “is providing us with an outline to continue to operate in a safe, effective, and profitable manner for the foreseeable future.”
He informed that while other companies in the world have been forced to lay off employees or furlough without salaries due to the pandemic, NMC has managed its payroll every month.
“With the skills and experience of our strong and talented leadership teams in the field, the help of our friends and colleagues at Alvarez and Marsal, as well as the support of our benevolent UAE government and Rulers, I truly feel we are on the right track to turn the company around. But I know that our recovery would not be possible without each and every one of you and your strong commitment to the company’s success,” said Davis.