Neopharma, the pharmaceutical company established by B.R. Shetty, is set to kick off talks to restructure Dh1 billion of debt under pressure from its lenders.
Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates Islamic Bank, Bank of Baroda and Bahrain’s First Energy Bank are gathering soon to consider a plan to restructure the debt. Bankers will also deliberate strategies to introduce a new strategic investor to Neopharma for keeping the house running.
Abu Dhabi-based Neopharma, which is connected to NMC Health Plc through B.R Shetty, was pulled into the issue circling the struggling hospital administrator. NMC is being managed by officials at Alvarez & Marsal Inc. after the discovery of more than $4 billion of hidden debt in the firm books.
Mr. Shetty founded Neopharma in 2003 and was contemplating trading stake in the company last year before deception charges forced it into administration and led one of his organizations, Finablr Plc, to the verge of a breakdown. The Indian businessperson had been weighing selling Neopharma once his enterprise began disclosing in an agreement that would appreciate the corporation at within $700 million and $1 billion.