(Adds details on debt, background)
March 10 (Reuters) - UAE-based hospital operator NMC Health said on Tuesday it had identified over $2.7 billion in debt that had not been disclosed to its board earlier, taking its total debt to around $5 billion.
“The Board believes that some proceeds may have been utilised for non-group purposes,” said the troubled company, which has appointed Moelis and PriceWaterCoopers to assist in talks with lenders.
The news of undisclosed debt comes a day after GKSD Investment Holding pulled out of a bid for NMC, in the latest sign of potential buyers walking away from the deal.
NMC has been embroiled in a series of set backs since December when U.S. based short-seller Muddy Waters questioned its financial statements. Ever since, the company’s shares have dropped dramatically, losing about two-third of their value.
Earlier this month, NMC said it would ask for an informal standstill on debt to stabilise its finances. It had reported $2.1 billion debt in June.
London-listed NMC said on Tuesday it was working with its advisers to understand the exact nature and quantum of the undisclosed debt.
Reporting by Samantha Machado in Bengaluru; Editing by Shinjini Ganguli