(Bloomberg) --

Troubled Middle Eastern hospital operator NMC Health Plc uncovered more than $2.7 billion in previously undisclosed debt facilities, saying some of the proceeds may have been used for unauthorized purposes.

The latest findings bring its debt to around $5 billion, NMC said Tuesday in a statement. It had reported borrowings of $2.1 billion as of June 30.

The largest health-care chain in the United Arab Emirates, NMC had appointed investment bank Moelis & Co. and consultant PwC to help the company in its discussions with lenders and to assist in providing transparency with respect to its financial position. NMC is working with its advisers to understand the exact “nature and quantum” of the facilities, according to the statement.

NMC’s $400 million in sukuk notes due November 2023 fell 7 cents down to 55 cents on the dollar after the debt facilities were disclosed, according to data compiled by Bloomberg.

NMC has been in freefall since December, when short seller Muddy Waters Capital LLC accused it of financial improprieties. In January, the company put former U.S. Federal Bureau of Investigation Director Louis Freeh in charge of a review, which found that businesses owned by founder Bavaguthu Raghuram Shetty, who stepped down from the board last month, and former Vice Chairman Khaleefa Bin Butti borrowed money from NMC’s supply-chain finance lender.

NMC guaranteed repayment of those $335 million of borrowings, and the board was unaware of these arrangements, which had been in place since early 2018, the company said.

The shares have been suspended in London since Freeh’s findings were revealed Feb. 27, and the U.K.’s Financial Conduct Authority has started a formal enforcement investigation.

(Updates with drop in notes in fourth paragraph)

--With assistance from Suzi Ring.

To contact the reporter on this story: Eric Pfanner in London at epfanner1@bloomberg.net

To contact the editors responsible for this story: Kenneth Wong at kwong11@bloomberg.net, John Lauerman

©2020 Bloomberg L.P.