Abu Dhabi's ADCB sees creditors approval for NMC restructuring in first half
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Abu Dhabi’s ADCB sees creditors approval for NMC restructuring in first half

Abu Dhabi’s ADCB sees creditors approval for NMC restructuring in first half

The bank recorded $450m in provisions and interest in suspense toward NMC, Finablr and associated companies last year

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Abu Dhabi Commercial Bank, one of the biggest lenders to NMC Health, expects creditors’ approval for a restructuring plan for the collapsed hospital operator in the first half.

The bank recorded Dhs1.66bn ($450m) in provisions and interest in suspense toward NMC, Finablr and associated companies last year, according to a statement.

ADCB is “comfortable” with the provisioning levels, “given the positive developments in NMC’s recent financial performance and its ongoing restructuring process,” it said.

ADCB also said on NMC:

  • The sale of non-core assets underway
  • Bank has initiated multiple recovery and enforcement actions against key promoters and former shareholders of NMC
  • Continues to work closely with administrator Alvarez & Marsal and other key creditors on a restructuring plan

Founded by Indian entrepreneur Bavaguthu Raghuram Shetty, NMC had a market value of $10bn at its peak on the London Stock Exchange before allegations of fraud pushed it into administration last year.

The firm revealed more than $4bn of undisclosed borrowings, giving it a total debt of $6.6bn. Shetty has said that he is the victim of a fraud that also resulted in the administration of NMC’s sister company, foreign-exchange operator Finablr.

Last year, Abu Dhabi Commercial Bank said its combined exposure to NMC and Finablr totaled $1.16bn.

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