UAE’s NMC Healthcare group companies to secure release from administration

UAE’s NMC Healthcare has received creditor approval for the proposed deeds of company arrangement (DOCA) restructuring process.

This will enable 34 NMC group companies to exit administration and continue to operate the core business of the NMC group.

At the vote on September 1, 2021, the 35 DOCAs were approved. A whopping 95 per cent of creditors eligible to vote on a consolidated basis, did so in favour. Full results by entity will be available on the NMC website in the coming days, a statement said.

Once confirmed by the ADGM courts, implementation is anticipated to take between 3-5 months to complete the transfer of shares and assets of the DOCA companies as well as obtaining clearance from the appropriate government entities, at which point the 34 operating entities will exit administration.

NMC Healthcare Ltd itself will remain in administration in order to pursue certain potential litigation claims on behalf of itself and the other DOCA companies, any proceeds of which will be distributed to the relevant creditors in accordance with the terms of the DOCAs.

The period between NMC entering administration and the subsequent DOCA vote has been less than a year.

NMC Healthcare had announced the launch of its administration exit process last month.

Read: UAE’s NMC Healthcare announces launch of administration exit process

Michael Davis, chief executive officer, said: “This vote marks a new dawn for NMC Healthcare and for our 11,500 employees. The road to get here started in February 2020, and we are grateful for the support from our broad community of stakeholders including our creditors, suppliers, the joint administrators, and the ADGM for helping set the company on a stable footing while our dedicated staff continued to serve our loyal patient base.”

Richard Fleming, managing director of Alvarez & Marsal Europe and joint administrator of NMC and NMC Healthcare, said: “The successful handover of 34 NMC companies of the NMC group to full operation as going concerns under new ownership will be a major landmark for NMC and the Joint Administrators. This historic vote will welcome an era of a ‘New NMC’ that is able to do what it does best – serve its clinical customers in the UAE and deliver value to its stakeholder communities – with its operational future safeguarded.”

Meanwhile, Abu Dhabi Commercial Bank (ADCB) also welcomed the approval by creditors of NMC Group of the company’s debt restructuring and issuance of exit instruments to its creditors. ADCB initially took NMC’s parent company in the UK into administration, which led to the company filing for voluntary administration in ADGM.

Read: NMC’s new chairman asks for ‘patience’ as creditor ADCB seeks to appoint administrators

NMC Healthcare has reported EBITDA (earnings before interest, tax, depreciation and amortisation) worth $103.9m during the first half of 2021. Meanwhile, gross revenues for NMC’s UAE and Oman business stood at $611m.