Wednesday, 26 August 2020

#UAE, #AbuDhabi News: NMC Health Faces Fees of $140 Million for Bankruptcy - Bloomberg

UAE, Abu Dhabi News: NMC Health Faces Fees of $140 Million for Bankruptcy - Bloomberg:

The restructuring of NMC Health Plc through an Abu Dhabi court could cost as much as $140 million in consultancy and legal fees, almost half of what the hospital operator’s administrators are raising in new funding from creditors.

“It’s not cheap and we have the best advisers and the best minds in the world working on the preservation of this business,” acting Chief Executive Officer Michael Davis said in a recent interview. “If you look at the amount of money that has gone to other parties or that the company has lost, this is money well spent.”

NMC’s court-appointed overseers are applying for bankruptcy proceedings through Abu Dhabi Global Markets, the financial center of the United Arab Emirates capital. They’re doing so as the company’s complex legal structure across different geographies makes it more efficient to oversee the process in one jurisdiction, where the bulk of its operations are based. 


Founded by Indian entrepreneur Bavaguthu Raghuram Shetty, NMC had a peak market value of $10 billion on the London Stock Exchange before the uncovering of billions of dollars of undisclosed debt pushed it into administration. Caretakers Alvarez & Marsal Inc. are now working on a turnaround plan that will see NMC focus on its UAE and Oman domestic markets, while selling non-core international assets.

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