Exclusive: NMC sues Dubai bank in $6 billion UAE debt row - sources | Reuters
The United Arab Emirates’ largest private healthcare provider NMC is suing a Dubai bank in Abu Dhabi courts, three sources said and a court document showed, in a dispute that could complicate the company’s multibillion-dollar debt restructuring and potentially delay payouts to creditors.
The healthcare company ran into trouble last year after the disclosure of more than $4 billion in hidden debt.
Its UAE operating businesses were placed into administration in the courts of Abu Dhabi’s international financial centre ADGM. Claims from creditors to date amount to $6.4 billion, the company has said.
The legal action by NMC’s administrator against Dubai Islamic Bank (DIB) comes after DIB filed lawsuits in neighbouring Dubai. The lawsuits pit UAE’s different legal systems against one another and risk complicating the restructuring.
“So which court takes priority now?” one of the sources said. “The problem is that none of this has ever been done before.” The sources declined to be identified because of the commercial sensitivity of the matter.
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