NMC Health PLC, a hospital operator based in the United Arab Emirates that collapsed amid allegations of a multibillion-dollar fraud, filed for bankruptcy protection in the U.S. and could liquidate as it faces shareholder lawsuits over its financial irregularities, the Wall Street Journal reported. The company, which does business mainly in the Middle East but also in other regions, including the U.S., was placed into administration by a U.K. court last month following the discovery of a hole in its books of more than $3 billion. NMC Health yesterday filed for chapter 15 protection in the U.S. Bankruptcy Court in Wilmington, Del. Founded by Bavaguthu Raghuram Shetty, NMC Health operates a network that includes 38 hospitals and 146 medical centers in 19 countries. The Indian-born Shetty and Emirati billionaire Khaleefa Butti Omair Yousif Ahmed al-Muhairi, formerly NMC’s executive vice chairman, resigned from the company’s board in February. The company, now overseen by three Alvarez & Marsal Europe LLP administrators, said the U.S. bankruptcy filing is intended to put a stop to collection and enforcement actions, giving it time to evaluate how to best manage its U.S. medical practices and other assets. World-wide, it has about 20,000 employees, including about 2,000 doctors.
