Dubai: Abu Dhabi based investment group, KBBO, has appointed advisors to come up with a restructuring plan for its liabilities and which would find favour with creditors.
KBO, which has Khalifa Bin Butti as Chairman, had a sizable exposure to Abu Dhabi headquartered NMC Health, and which has led to the problems it is now facing.
The Group “has been challenged” by the exposure to NMC, it said in a statement. The extent of KBBO’s overall liabilities has not been revealed.
According to Bin Butti, “In light of the current market conditions, we believe the appointment of a team of restructuring advisors and experts is a critical step to facilitate the financial restructuring of the Group’s operating companies in a timely and efficient manner.
“The Group’s underlying assets remain strong and I am confident that this process will mean the business can return to growth in the near future.”
KBBO had applied to the Financial Reorganization Committee in April to carry-out the restructuring of liabilities of its operating companies. This would be in accordance with the requirements described in UAE Cabinet Resolution No. 4 of 2018.
The FRC later accepted the application and paving the way for discussions between the companies and the creditors to reach a consensual agreement.