The DAX stock index curve is on a display screen above a miniature bull on the Frankfurt Stock Exchange, operated by Deutsche Boerse AG, in Frankfurt, Germany.
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The Stoxx Europe 600 lost nearly 12% last week to post its worst five-day run since the 2008 financial crisis. However, two of the 600 companies listed on the European benchmark emerged in the dark.
NMC Health’s London-listed stocks jumped 9.7% during the week, but the Abu Dhabi-based hospital chain is fighting for its life and was forced to suspend trading in its stocks on Thursday.
NMC shares have lost more than half their value since December when US broker Muddy Waters questioned their financial information.
Subsequent intermittent increases in the share price are largely due to speculation over takeovers and hopes for debt restructuring, but no cautious optimism has yet been confirmed.
The bosses of the company have since been involved in an accounting and governance scandal. Last week, NMC managing director Prasanth Manghat was removed from office with immediate effect, and the company is facing an investigation by the Financial Conduct Authority (FCA) in the United Kingdom.
Carson Block, founder and director of Muddy Waters
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An independent internal investigation, led by former FBI director Louis Freeh, into the company’s books found a multitude of undisclosed loan agreements for companies owned by its founder, Indian businessman BR Shetty.
NMC confirmed on Monday that it had appointed independent investment bank Moelis to advise the company in discussions with lenders, and would request an “informal status quo” in order to stabilize its funding. PwC and Allen & Overy have also been appointed operational and legal advisers with immediate effect, the company said.
“NMC is currently fully focused on safeguarding operational liquidity to continue funding existing operations in its various subsidiaries,” said the announcement.
Meanwhile, Muddy Waters CEO Carson Block said in a statement after Manghat’s layoff: “At this point, the company’s announcements speak for themselves and seem even more damning than our initial report. “
Trading in the company’s shares is still suspended on Monday.
The only other stock to end the week in positive territory is the French household appliance consortium Groupe SEB, up 1.8% over the week at the close of Friday.
This happened on the back of a steep slope after the company’s annual results on Thursday, which saw sales and revenue growth. However, the title had already made these gains Monday mid-morning, down 1.9%.