SHETTY-UAE … Huge amounts funneled out by NMC through fraudulent means; many hidden acts

NEW DELHI: 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 wire service has reported.

NMC and Finablr Plc were founded by Karnataka-based NRI businessman, BR Shetty, who has allegedly scooted from the scene, and is currently in India. A day ago, he put the blame for the company’s problems on some of his employees, and alleged that they indulged in fraudulent activities and cheque-related mischiefs. Not many believe Shetty has come to know of things only now. Many suspect he scooted from the scene and took away huge sums from his companies based out of the UAE.
As per the Bloomberg report, 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. Finablr had $334 million of debt at the end of June, according to a statement at the time.
The revelations are another blow to Bavaguthu Raghuram Shetty’s business empire, which also includes NMC. They also mirror a similar announcement by the Abu Dhabi-based hospital chain, which uncovered hidden debt in March, taking its total to about $6.6 billion. The healthcare chain has since been was placed into administration and creditors set up a committee to restructure debt. Houlihan Lokey Inc., which carried out the investigation with Kroll LLC, is still verifying Finablr’s indebtedness and will engage with creditors to explore options, it said.

Finablr had a market value of 77 million pounds ($96 million) when it was halted from trading in March, down from a peak of 1.5 billion pounds in December. IHN-NN


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