NMC Health Plc (NMHLY) Mislead Shareholders?
On December 17, 2019, Muddy Waters Capital LLC published a report revealing that NMC had failed to disclose: (i) its lack of internal controls; (ii) (de facto) related party transactions; (iii) its true debt burden; (iv) its true cash-on-hand and asset values; and (v) its use of reverse factoring. Then, on March 10, 2020, Financial Times and Bloomberg published articles entitled “NMC Health Discovers Almost $3 billion of Debt Hidden from is Board” and “Abu Dhabi Insurer Steps In to Help NMC Health Pay Salaries,” respectively. As a result of all of these disclosures, NMC Health currently trades at around $0.85, representing a staggering 98% decline from its class period high of $53.03.