NMC HEALTH said yesterday that its estimated debt was around $6.6bn (£5.6bn) — $1.6bn higher than the stricken company's previous estimate.

NMC said on 10 March the group's debt position was materially above the last reported number at 30 June and was estimated at that date to be around $5bn.

But yesterday the company's board said it had received an update on Monday advising that the group's debt position is estimated at $6.6bn, including the $360m convertible bond and over $400m in sukuk — an Islamic finance insrtrument. It said its bilateral and syndicated debt obligations comprise 75 debt facilities from over 80 financial institutions.

"Work on verifying the outstanding debt obligations is continuing," the company said in its statement.

NMC said it believes that some proceeds of the debt may have been used for non-group purposes and said it was trying to trace the proceeds "with a view to considering what actions may be available to the group to recover such monies".

NMC was plunged into chaos in December after a blistering attack by shortseller Muddy Waters which questioned its financial statements. An independent investigation launched by NMC into its books, later found major discrepancies and its founder and chief executive have both now stepped down.

Last month NMC said it was suspending its shares and City watchdog the Financial Conduct Authority said it was launching an investigation into the group.

(c) 2020 City A.M., source Newspaper