NMC Health Placed Into Administration by U.K. Court

(Bloomberg) -- Troubled hospital operator NMC Health Plc was placed into administration by a U.K. court to protect the assets of the Middle East’s largest health-care provider.

NMC didn’t oppose the effort by creditor, Abu Dhabi Commercial Bank. Judge Sebastian Prentis said there was no alternative to administration after hearing the arguments via videoconference.

• Lawyer for Abu Dhabi Commercial Bank says there are concerns that the NMC Group will be unable to pay employees in the months to come and that the whole NMC Group may collapse.
• “If this happens, it will imperil the health of the citizens in the UAE,” lawyer says in court filing. Bank “considers that steps must be taken now, before it is too late, to secure the company’s financial position.”
• State-owned Abu Dhabi Commercial Bank PJSC proposed Alvarez & Marsal as administrator
• Judge says NMC is cashflow insolvent
• Another creditor, Barclays, is owed $146 million, lawyers say in court.

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