March 10, 2020 / 5:18 PM / in a month

UPDATE 1-NMC Health identifies over $2.7 bln in undisclosed debt

(Adds details on debt, background)

March 10 (Reuters) - UAE-based hospital operator NMC Health said on Tuesday it had identified over $2.7 billion in debt that had not been disclosed to its board earlier, taking its total debt to around $5 billion.

“The Board believes that some proceeds may have been utilised for non-group purposes,” said the troubled company, which has appointed Moelis and PriceWaterCoopers to assist in talks with lenders.

The news of undisclosed debt comes a day after GKSD Investment Holding pulled out of a bid for NMC, in the latest sign of potential buyers walking away from the deal.

NMC has been embroiled in a series of set backs since December when U.S. based short-seller Muddy Waters questioned its financial statements. Ever since, the company’s shares have dropped dramatically, losing about two-third of their value.

Earlier this month, NMC said it would ask for an informal standstill on debt to stabilise its finances. It had reported $2.1 billion debt in June.

London-listed NMC said on Tuesday it was working with its advisers to understand the exact nature and quantum of the undisclosed debt.

Reporting by Samantha Machado in Bengaluru; Editing by Shinjini Ganguli

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