United Arab Emirates

A financial scandal has swept through London and the United Arab Emirates, centered on allegations of fraud at the two core companies of the Abu Dhabi-based tycoon Bavaguthu Raghuram Shetty, Bloomberg News reported. Both NMC Health Plc and Finablr Plc have had their shares suspended in London, with NMC losing its place in the FTSE 100 index of leading U.K.-listed companies.

Emirates NBD has $23.66 million to the Dubai subsidiary of Phoenix Commodities which had recently filed for liquidation, Dubai’s biggest lender said on Tuesday, Reuters reported. Emirates NBD bank said in a statement that the exposure was to Phoenix Global DMCC, a unit of Phoenix Commodities Pvt Ltd. Phoenix, with offices in Dubai and Singapore, is being liquidated after amassing more than $400 million in potential trading losses, according a document prepared by the liquidators seen by Reuters. The document did not name the creditors but sources familiar with the company had

Phoenix Commodities Pvt Ltd, a trader of agricultural products with offices in Dubai and Singapore, is being liquidated after amassing more than $400 million in potential trading losses, according a document prepared by the liquidators seen by Reuters.

Finablr Plc, the embattled owner of two foreign-exchange businesses, uncovered about $1 billion of debt hidden from its board that may have been used for purposes outside of the company, compounding a scandal that pushed its sister firm NMC Health Plc into administration, Bloomberg News reported. The London-listed company and its creditors found that Finablr Group’s overall debt was about $1.3 billion, excluding the debt of its Travelex Holdings Ltd. unit and “materially above” its last reported figure, according to a statement.

Dubai is in talks to raise billions of dollars of debt privately instead of following Gulf neighbors by tapping public markets, as the emirate looks to bolster its finances and mitigate the economic fallout of the coronavirus pandemic, Bloomberg News reported. The Middle East’s main business hub is discussing loans and private placements with around a dozen international and domestic banks, according to people with knowledge of the matter.

Abu Dhabi-based KBBO Group, once one of NMC Health Plc’s biggest shareholders, plans to restructure its debt and is weighing strategic options for the business, people familiar with the matter said, Bloomberg News reported. KPMG LLP is advising the privately-held investment firm on the asset review along with ways to address the company’s debt load, according to the people, who asked not to be identified because the information is private.

Abu Dhabi Commercial Bank said it has launched a criminal complaint in the capital of the United Arab Emirates in relation to NMC Health, the healthcare group that was put into administration in the UK last week and owes the bank nearly $1bn, the Financial Times reported.

NMC Health Plc’s biggest creditors have set up a coordinating committee, taking a major step toward restructuring the $6.6 billion debt pile of the Middle Eastern hospital operator, Bloomberg News reported. The company asked Abu Dhabi Commercial Bank PJSC to chair a coordinating committee of debtholders, NMC’s acting chief executive officer, Michael Davis, wrote in a letter to lenders dated Monday. Deloitte and Clifford Chance LLP have been appointed to advise the committee while Lazard Ltd.

NMC Health’s administrators have sought to reassure staff that the scandal-ridden hospital operator will still be able to help the United Arab Emirates battle the coronavirus pandemic, the Financial Times reported. As the largest private healthcare provider in the UAE, NMC has an important role in preparing the Gulf state to cope with the outbreak, which has already claimed 22 lives from about 4,100 cases.

Healthcare company NMC Health said on Wednesday it expects to be placed into administration in due course, following weeks of uncertainty relating to its debt levels and undisclosed shareholder dealings, Reuters reported. NMC said in a statement it was unable to reach agreement with its creditors despite strenuous efforts to address their concerns. Abu Dhabi Commercial Bank, one of the major lenders to NMC Health, filed an application earlier this month in a UK court to put the company into administration.