Scandal-Hit NMC Exits Administration in UAE and Forms New Entity
Scandal-Hit NMC Exits Administration in UAE and Forms New Entity
(Bloomberg) -- NMC Healthcare Ltd.’s core businesses have exited administration in the United Arab Emirates, capping a years-long saga that brought the firm to the brink of collapse after it revealed more than $4 billion of undisclosed borrowings.
The firm said 34 units have completed a restructuring process and exited administration on Friday, becoming subsidiaries of a new company, NMC OpCo Ltd. The new entity is the largest integrated private healthcare platform in the UAE and the third largest in Oman, employing over 12,000 people.
Its new board will comprise of seven directors, selected by creditors with the largest holdings of NMC’s exit instruments. United Kingdom-registered NMC Healthcare Plc and UAE-registered NMC Healthcare Ltd remain in administration while related restructuring and legal issues are resolved.
Abu Dhabi Commercial Bank, one of NMC’s biggest lenders, said it received 37.5% of the transferable exit instruments in a $2.25 billion facility issued by the new holding company. The bank recorded $450 million in provisions and interest in suspense toward NMC, Finablr Plc and associated companies in 2020.
NMC, which was once listed on the London Stock Exchange, collapsed in 2019 and was placed in administration soon after. In September, the firm said it won approval for a restructuring that would allow the bulk of its businesses to exit administration.
NMC’s restructuring was the first such case to be handled by the court in Abu Dhabi Global Market, the financial center of the UAE capital.
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