Monday 12 July 2021

NMC Health's administrators to pursue claims once restructuring is complete

NMC Health's administrators to pursue claims once restructuring is complete

The joint administrators of UAE healthcare group NMC Health have said they intend to begin legal action in a bid to recover part of the $4 billion that disappeared from the company.

Cases are expected to be filed once the group's restructuring through a Deeds of Company Arrangement, or Doca, is complete, Richard Fleming, joint administrator from Alvarez & Marsal, said.

A Doca refers to binding arrangement between a company and its creditors that details how the former's assets and operations are to be dealt with.

“Investigations on the cause and facilitation of the fraud, which was catalyst to the crisis that befell NMC in February 2020, is ongoing and progressing at pace," said Mr Fleming.

"Following the formal launch of the Doca, the joint administrators intend to start commencing legal actions.”

NMC Health was placed into administration in April last year. Problems at the UAE's biggest healthcare group first emerged in December 2019 after activist investor Muddy Waters issued a report claiming the company had under-reported its debts and inflated the value of its assets.

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