NMC saga: Abu Dhabi’s ADCB begins criminal legal action against several people

Abu Dhabi Commercial Bank (ADCB) has initiated criminal legal proceedings with the Attorney General in Abu Dhabi against a “number of individuals” in relation to the NMC Health Group, it announced on Wednesday.

The action is “consistent with the bank’s objective to protect its interests”, it said in a statement.

ADCB is owed $963m by Abu Dhabi’s NMC, which was placed under administration by a London Court on April 9.

“ADCB continues to work closely with other creditors and the joint administrators to ensure continuity of NMC Health’s operations and a rapid recovery of the business,” the statement added.

London-listed NMC, founded by Indian entrepreneur BR Shetty, has been hit hard due allegations of fraud with trading in its shares also suspended. Most of NMC’s senior management resigned after it was revealed that the company had more than $4bn of undisclosed debt.

Read: Former chairman of UAE’s NMC urges administrator to act swiftly, supports investigation

According to a statement provided by court-appointed administrator Alvarez & Marsal, their key objectives are to “ensure continuity of patient care and operations delivered through the operating entities across the NMC Health group, install a new governance structure, conduct investigations and ensure full transparency in communication with all stakeholders”.

A new board of directors has been appointed while Michael Davis will continue as the CEO, reporting to the co-chief restructuring officers upon their appointment.

The key objectives of the new board and management team will be to “create a stable platform before commencing the restructuring and turnaround, with the key immediate priority being the monitoring of liquidity of the group”, the statement said.

They will also work to ensure the continuity of patient care and stability for all stakeholders, notably staff and suppliers.

A steering group has also been formed to lead day-to-day discussions and lender-side workstreams. The group will have some of NMC’s largest debt-holders including Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Barclays and Standard Chartered.

“An all-lender call will be held on Monday, April 20, where further details will be provided on the proposed process going forward,” the statement said.

Antonio Alvarez III, proposed co-chief restructuring officer and managing director of Alvarez & Marsal Europe, said: “We look forward to working closely with the board and the operational management teams to help them stabilise the businesses.

“A key action will be moving to augment capabilities, particularly in the finance area, where there have been several key departures. We will also be working diligently with NMC’s financial creditors to quickly rebuild confidence and trust in NMC and to develop and execute a business restructuring plan.”