The core operations of NMC Healthcare Group, rocked by scandal in 2020, have exited administration in the UAE, allowing a newly formed holding company to chart a fresh path, according to its CEO.
Following various legal approvals, 34 NMC operating companies have now completed a deed of company arrangement (DOCA) restructuring process under the auspices of Abu Dhabi Global Market (ADGM).
The companies left administration on Friday and are now subsidiaries of a new company, named NMC OpCo Ltd, overseen by a newly appointed and highly experienced board of directors.
One of the largest privately-owned healthcare groups in the UAE, NMC had a market value of $10 billion at its peak on the London Stock Exchange with more than 200 healthcare units in 17 countries – before allegations of fraud pushed it into administration in April 2020.
The disclosure of more than $4 billion in hidden debt left many UAE and overseas lenders with heavy losses. The firm approved a restructuring process in 2021.
The exit of the operating companies from administration follows a landmark agreement on 1 September 2021, when 95 percent of eligible creditors, on a consolidated basis, voted in favour of the restructuring plan.
As a result, unsecured creditors have settled claims on existing debt in exchange for exit instruments in a new facility.
The new NMC, which is the largest integrated private healthcare platform in the UAE and the third largest in Oman, employs over 12,000 people and serves over 5.4 million patients annually through 11 hospitals and 54 community clinics and specialty care centres.
Michael Davis, CEO of NMC, said: “An unwavering dedication to the community from our nurses, doctors and support staff has always been at the core of NMC’s values and will form the foundation of the company’s future success.
“Our teams have continued to deliver service excellence through the most challenging of times, playing a key role in the UAE’s world-leading response to the pandemic.
“Over the past two years, we have built a company that we are all proud of – an organisation that is open, honest, and transparent – and that continues to provide exceptional patient care, community service and clinical excellence. Today, we exit administration with a renewed sense of purpose, a clear direction, a strong focus on who we are here to serve and an unwavering commitment to driving the future growth of NMC… We emerge today stronger, more resolute and resilient than ever and ready to chart our new path.”
He added that the immediate priority of NMC’s new board and management team is to embed a robust governance framework and implement a business plan that will drive the further growth and development of the company and its employees.
Kevin Taylor, chairman of NMC, said: “By taking NMC into administration and running an effective restructuring process within ADGM’s transparent, fair and robust framework, the company is now well-positioned to embark on the next phase of its journey and growth.
“This process was vital because of the central role that NMC plays in the provision of quality healthcare to communities across the UAE, which has been highlighted by the total dedication of its employees throughout the global pandemic.”
NMC Healthcare PLC entered administration in April 2020 following legal action taken by significant creditors in response to several developments at the company. The 34 operating companies subsequently filed for voluntary administration in ADGM in September 2020.
Joint administrators Alvarez & Marsal worked closely with creditors and a new management team at NMC to design and implement a three-year business plan.
The UK-registered NMC Healthcare PLC and UAE-registered NMC Healthcare Ltd remain in administration while restructuring and legal issues related to these entities are resolved.
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