ADCB welcomes creditors approval for restructuring of NMC | Banking – Gulf News
Abu Dhabi Commercial Bank (ADCB) welcomed the approval by creditors of NMC of the restructuring of the Company’s debt and issuance of exit instruments to its creditors.
As a significant creditor to NMC, ADCB took proactive actions from February 2020 onwards initially taking NMC’s parent company in the UK into administration, which ultimately led to the company filing for voluntary administration in ADGM, a course of action that was identified by the company and its advisors as the most suitable route to ensure rescue and timely turnaround of the Company. Such actions also ensured operational continuity for patients, healthcare workers and other stakeholders throughout the global pandemic period. These proactive approaches were taken in response to several developments at NMC, including the revelation of previously undisclosed liabilities of over $ 4 billion. ADCB has worked closely with other creditors to support the joint administrators of the company, who prepared a three-year business plan to create and maximise value at the Company’s core operations, divest non-core assets, reduce debt and ensure an orderly restructuring process.
In line with this supportive approach, the Bank participated in the Company’s Administration Funding Facility (AFF) to underpin the implementation of the business plan and its restructuring process. In consideration of the participation in the AFF, the participants were granted elevation and conversion rights for an amount equivalent to their respective AFF participation. Following the exercise of these rights ADCB is expected to receive approximately 39 per cent of transferable exit instruments in a new $ 2.25 billion facility, a debt claim sized to the expected future value of NMC.
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