The administrators of troubled hospital operator NMC Health have announced a new board for the London-listed company, bringing in four non-executive directors with international restructuring experience.
Previous board members, including executive chairman Faisal Belhoul, have been removed, the administrators said in a statement.
The move came after the High Court in London placed NMC Health into administration on Thursday on the application of one of its biggest lenders, Abu Dhabi Commercial Bank (ADCB).
Shares in NMC, the United Arab Emirates’ biggest private hospital group, have more than halved in value since December after short-seller Muddy Waters raised concerns over the company’s financial statements.
NMC’s troubles have been compounded by doubts over the size of the shareholdings of major investors, including founder and former co-chairman BR Shetty, who last week said that he is conducting his own investigations.
Michael Brenden Davis remains as interim chief executive and chief operating officer but does not sit on the company’s board, the administrators from Alvarez & Marsal said.
“We formed a new board with extensive restructuring experience to ensure more robust standards of governance in NMC Health,” joint administrator Richard Fleming said in a statement.
“The board has already met to begin the detailed work necessary to create the governance platform in the group, supporting real stability for NMC’s operating businesses.”
NMC Health’s former executive chairman, Faisal Belhoul, issued a statement reiterating his call for an investigation into “any and all prior wrongdoings” at the company and that all involved parties are held accountable.
“I will do all in my power to support this process, working with the administration team and other partners,” said Belhoul, who is chairman of Ithmar Capital, which owns a 9 percent stake in NMC.