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  "docSlug": "4e150a3ef496",
  "documentTitle": "NMC Health plc (NMC.LN)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-12-17 00:00:00",
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  "notes": "The text argues that NMC misclassified Aspen leases as operating rather than finance leases, leading to a $320M debt understatement, and further questions the validity of the $352.2M lease commitment disclosure.",
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      "text": "NMC unjustifiably in our view understated its FY 2018 debt by at least approximately $320 million, and likely continues to do so.",
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      "text": "debt understatement: $320 million",
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      "text": "NMC unjustifiably in our view understated its FY 2018 debt by at least approximately $320 million, and likely continues to do so. When NMC acquired Aspen Healthcare in August 2018, we believe it should have shown Aspen’s leases as finance leases on its FY 2018 balance sheet, which would have amounted to a lease obligation of approximately $320 million.",
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      "text": "We do not believe that the $352.2 million includes the Aspen leases, and therefore we believe the balance sheet debt is still understated by at least approximately $320 million as of H1 2019.",
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      "text": "38 See Tenet disclosures for Q2 and Q3 2018. 39 Aspen’s 2018 financials disclose GBP 353.0 million minimum future payments under non-cancellable operating leases, which approximates $450 million. 40 See [URL] 41 NMC H1 2019 Interim Report, p. 32 42 [URL]",
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