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  "documentTitle": "NMC Health plc (NMC)",
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  "authorName": "Carson C. Block",
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  "presentationDate": "2020-02-10 00:00:00",
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  "notes": "This is a research note from Muddy Waters Capital regarding NMC Health, focusing on financial irregularities and potential fraud.",
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      "text": "To the extent our suspicions turn out to be correct, this circular symbiosis would be reminiscent of Enron’s off-balance sheet structures in which Enron issued shares to “special purpose entities”, which borrowed money using the stock as collateral, and then bought (poor) assets from Enron.",
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      "text": "In either scenario, debt would have effectively been used to pump up the value of stock, which would have in turn been used as collateral for (likely increasing) debt. This circular symbiosis would be reminiscent of Enron's off-balance sheet debt structures.",
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      "text": "The numerous pledges as raise at least two possibilities, each of which is worrying. One possibility is that NMC has undisclosed debt secured by share pledges. Another possibility is that these pledges were collateral for loans to related parties.",
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      "text": "One possibility we see is that the undisclosed insider share pledges enable off-balance sheet financing that disguises NMC's true financial condition. We believe that NMC has intentionally understated its debt balances.",
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      "text": "Yesterday NMC issued the latest in a series of confusing disclosures about its controlling shareholders' ownership and pledges when it disclosed that 19.0 million of its shares are potentially subject to undisclosed share pledges.",
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      "text": "The Financial Times December 20, 2019 report on NMC’s attempted off-balance sheet debt financing hints at hidden debt secured by share pledges. — The Financial Times",
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      "text": "Footnotes 1-6 detailing sources and references.",
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      "text": "Undisclosed Share Pledges Intensify Questions About True Debt Levels",
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