Hindering restructure will be ‘counter productive’ for Abu Dhabi’s NMC Health: Administrators | Banking – Gulf News
The joint administrators appointed for the restructuring of NMC Healthcare said on Sunday that they are facing hurdles, as one of the lenders is not cooperating with the process.
NMC, the largest private healthcare provider in the UAE, ran into trouble last year after the disclosure of more than $4 billion in hidden debt left many UAE and overseas lenders with heavy losses.
In September 2020, ADGM Courts appointed Richard Fleming and Ben Cairns of Alvarez & Marsal as administrators for NMC Healthcare’s group of operating companies and businesses.
In April, Alvarez & Marsal said it had received approval of $6.4 billion from lenders. This includes $6.3 billion from a group of 136 creditors and another $650 million potential claims of 10 creditors.
Working with creditors
“JAs have tried to work very closely with its (several hundred) creditors to seek their views on long-term approaches that would ultimately deliver maximum returns to creditors while ensuring NMC’s survival as value-generating going concern,” the administrators said in a statement.
The JA wants to propose (and shortly launch) ADGM deeds of company arrangement (DOCA) that will allow the operating businesses to exit administration, with ownership moving to the creditors.
The administrators said in statement on Sunday while most creditors support the restructuring, Dubai Islamic Bank (DIB) is the only lender that has not supported the decision to do DOCA.
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