UAE hospital operator NMC said on Wednesday its companies will begin the process of exiting the administration process in Abu Dhabi, creating a new entity controlled by its creditors with a future value of $2.25 billion.
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 center ADGM. Claims from creditors rose to $7.1 billion with the majority of $6.7 billion relating to financial creditor claims, the company said in a presentation on Wednesday.
A new NMC Group will be established, while all material entities and assets will be transferred to a new operating entity, it said in a separate presentation.
The operating entity will be owned by a holding company with a future expected value of $2.25 billion, it said.
Creditors will each receive a portion of the $2.25 billion debt claim equal to the expected future value of New NMC Group and will get interest payments for these facilities, it said.
“We have brought the company back from the brink of near total collapse to secure NMC’s future and to ensure that our ability to provide world-class patient care is preserved – through thick and thin,” Chief Executive Michael Davis said in a statement.
“The first half of 2021 is like daylight compared to the dark nights of the first half of 2020.”
The UAE and Oman business, the core assets of the group, reported gross revenues of $611 million, 10 percent ahead of the business plan.
NMC said after overwhelming support from creditors, the joint administrators Alvarez & Marsal have proposed deeds of company arrangement (DOCAs), which will allow 34 companies of the NMC group to exit administration.
There will be a creditors’ meeting to vote on the proposed DOCAs on Sept 1. Once confirmed by the ADGM courts, it is anticipated it will take three to five months to complete the transfer of shares and assets, it said.