UAE’s NMC Health secures $250m funding

UAE’s NMC Health has secured a $250m financing facility for its operating business.

The financing occurs as the group enters a second-phase restructuring, and will provide greater financial security for the business, to ensure it can continue to provide healthcare for patients and stability for staff and suppliers.

NMC’s leading lenders have agreed to $250m funding package contingent on certain conditions, which the group are close to completing.

The restructuring plan involves a “light touch” administration, or a similar process, for NMC to protect the operating businesses, while the existing management team would remain in operational control and all hospitals, medical centres, care facilities and other operations will continue to operate as usual.

NMC has developed a three-year business plan focused to deliver continued growth in its core UAE business. It has retained Perella Weinberg Partners as the investment bank to explore the potential sale of the international businesses and advise on restructuring alternatives.

The London-based NMC holding company was forced into administration in April amid claims of fraud and the discovery of undisclosed loans worth $4.1bn with Alvarez & Marsal appointed as administrators.

Read: NMC heads to administration after bowing to creditor demands

Richard Fleming, managing director of Alvarez & Marsal Europe LLP and joint administrator of NMC Health PLC, said: “We are pleased with the considerable progress we have made since we were appointed, in what remains a complex and challenging situation. Securing new funds, moving to the next phase of restructuring and the development of a three-year business plan are significant milestones.

“Alongside delivering increased financial stability for the Group, the next phase of the process will see an increased focus on identifying and holding to account those responsible for the illegal and fraudulent actions which created this situation and still pose a threat to the Group and its stakeholders. We continue to co-operate with the authorities to ensure that those who have committed illegal and criminal acts are brought to justice.

“NMC LLC is a strong business operationally and, as shown by our confidence in the three-year business plan, has significant potential. Success in the next phase of the restructuring will allow the Group to continue to provide world-class health services to all its patients and underpin the provision of healthcare in the UAE.”

Also read: NMC administrators start selling its assets to pay the UAE hospital operator’s creditors