Abu Dhabi hospital operator NMC sees lenders take control of turnaround plans | Markets – Gulf News
Creditors have taken control of NMC Healthcare as direct stakeholders in the latest turnaround point for the UAE’s largest private hospital operator. What this means is that creditors have swapped their debt exposure for direct equity in the company.
This will likely mean that they will see the company through the next two to three years rather than go in for any immediate sale, according to market sources. So, what this means is that the company set up by Dr. B.R. Shetty in the mid-1970’s and then built up as the largest private healthcare company in the UAE – and in the region – is finally seeing a change in shareholders. These shareholders have had exposures of over $4 billion in the company and faced a stark choice – try and sell the company immediately and get whatever they could.
Or hold on until the current administration saw the company through the next year or two and improve its chances with a new buyer. So, these creditors turned shareholders will work with NMC's current management to come up with a plan to see the company emerge stronger - which will be through a sale of its UAE and Oman operations.
"This conversion buys time for the entire process - it shows NMC creditors believe in the ongoing turnaround story" said a banker. "And they are prepared to wait for a return on their past lending to the company."
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