Abu Dhabi hospital operator NMC reports $611m H1-2021 revenue
Joint Administrators work on resolution of various creditor and administrative issues
Dubai: NMC Healthcare Ltd (NMC), the largest private healthcare company in the UAE, reported total revenues of $611 million for the first-half of 2021, 10 per cent ahead of the business plan.
The Group ran into trouble last year after the disclosure of more than $4 billion in hidden debt left many UAE and overseas lenders with heavy losses.
The first-half of 2021 is like daylight compared to the dark nights of the first-half of 2020. We have brought the company back from the brink of near total collapse to secure NMC’s future and to ensure that our ability to provide world-class patient care is preserved – through thick and thin
The number of patient encounters across the group has grown significantly to 4.4 million year-to-date as full operating capacity has returned in the wake of COVID-19.
In its ongoing efforts to support the UAE’s COVID-19 response, group administered 98,919 vaccinations and 1.7 million PCR tests in H1-2021. Programme of performance improvement initiatives – including workforce and operational efficiency improvements centrally as well as procurement savings across a variety of areas - has supported the delivery of EBITDA of $103.9 million during the half year, 50 per cent ahead of the business plan.
Non-core sales update
In April, NMC Healthcare Plc and NMC Healthcare Ltd announced the completion of the sale of Eugin (Luarmia and Boston IVF) to Fresenius Helios for an enterprise value of 430 million euros (approximately $525m).
Deeds of company arrangement process
Following the indication of overwhelming support from creditors, the Joint Administrators have proposed deeds of company arrangement (DOCA), which will allow the NMC group companies to exit administration and continue to operate the core business of the NMC group.
To enable this to happen, the proposed DOCAs will compromise the DOCA companies unsecured debts in exchange for unsecured creditors receiving equity-like interests in a new NMC group.
The shares of the DOCA companies other than NMC Healthcare Ltd (in administration) and substantially all the assets of Ltd will be transferred to the new NMC group. 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.
There will be a meeting for creditors to vote on the proposed DOCAs on September 1. Creditors may also vote via proxy. Once confirmed by the ADGM courts, it is anticipated implementation will 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.
We have worked closely with NMC Healthcare’s stakeholders on a long-term approach that will deliver maximum returns to creditors while ensuring NMC’s survival as value-generating going concern
“The deeds of company arrangement (DOCA) provide the best and most appropriate mechanism to both secure NMC’s position to delivery first-class patient care, while enabling the group to continue its restructuring and performance improvement programme.”