Wednesday 1 September 2021

NMC creditors approve plan to take control of firm's units, end administration | Reuters

NMC creditors approve plan to take control of firm's units, end administration | Reuters

The creditors of UAE hospital operator NMC have approved a restructuring process that will give them ownership of 34 NMC group companies and allow those entities to exit administration in Abu Dhabi, NMC said on Wednesday.

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.

Its UAE operating businesses were placed into administration in the courts of Abu Dhabi's international financial centre ADGM last year. Claims from creditors rose to $7.1 billion, the majority of which related to financial creditor claims.

The creditors' approval will create a new entity controlled by them that will allow the continued operations of NMC's core business. Abu Dhabi Commercial Bank, one of NMC's largest creditors, said it is expected to receive 39% of transferable exit instruments in a new $2.25 billion facility, linked to the expected future value of the new entity.

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