UAE’s NMC Health to go into ‘administration’April 8th, 2020 | 290
Dubai: Abu Dhabi headquartered NMC Health will come under administration.
This means that a UK Court appointed administrator will oversee the immediate future of the troubled hospital operator.
This follows breakdown in talks between NMC’s new management and ADCB, the bank which has got exposures Dh3.6 billion with it.
In a statement late on Wednesday, Faisal Belhoul, newly appointed Executive Chairman of NMC, said: “The Board of NMC Health has written to the [UK] court indicating that, notwithstanding strenuous efforts to address creditors’ concerns, it has not been able to secure their alignment and support and has been advised by its counsel that it is not in a position to oppose the application.
“Accordingly, the board expects the company to be placed into administration in due course. Realizing regrettably that administration has become a certain outcome, I must now underscore that it is critical that the administration process is conducted quickly and smoothly, with the core objective of keeping the organisation stable and in a position to provide vital medical care to support the people.”
It was early this week that ADCB, the bank with the highest exposure to NMC, filed an appeal in the UK court for NMC to be placed under a court-appointed administrator. This effectively would mean that the NMC management would have no say in the running of the business or how it would take care of its $6.6 billion in loans to banks, both local and international.
The first hearing is to take place on Thursday (April 9).
Over the last three days, Faisal Belhoul was in talks with ADCB and other lenders to come up with a solution that would not see NMC come under court supervision. The immediate priority was to get ADCB to pull back on the appeal with the UK court.
Source info: Gulf News