Dubai: NMC Healthcare ltd (NMC) together with its subsidiaries, the largest private healthcare company in the UAE, has received creditor approval for the proposed deeds of company arrangement (DOCA) restructuring process. The move will allow 34 NMC group companies to exit administration and continue to operate the core business of the NMC group.
At the vote on September 1, the 35 DOCAs were approved with overwhelming support. Of the creditors eligible to vote on a consolidated basis, 95 per cent of creditors voted in favour. Full results by entity will be available on the NMC website in the coming days.
“History is not finished with NMC Healthcare, and we look forward our next stage of growth working with our new owners and our continued journey toward NMC 2.0,” said Michael Davis, CEO of NMC.
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, at which point the 34 operating entities will exit administration.
While hospital systems around the world have struggled, NMC is proud of the performance of its core portfolio of multi-specialty hospitals, clinics and medical centers. NMC 2.0 will stand tall as a beacon of health and well-being for the benefit of the communities we serve.
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.
First major insolvency case for ADGM
NMC ‘s situation was ADGM’s first major insolvency case, and its insolvency regulation proved robust in taking a complex business, with an overhang of a massive fraud, through a transparent and fair process to fix capital structure and ensure long-term viability, while simultaneously restoring the stability of the business.
The period between NMC entering administration and the subsequent DOCA vote has been less than a year, remarkably swift by any international standard. Since the outset, NMC has benefitted from a bedrock of creditor support, as evidenced by the overwhelming support for the DOCAs as a restructuring option to deliver superior return to creditors.
“The successful handover of 34 NMC companies of the NMC group to full operation as going concerns under new ownership will be a major landmark for NMC and the Joint Administrators. This historic vote will welcome an era of a ‘New NMC’ that is able to do what it does best - serve its clinical customers in the UAE and deliver value to its stakeholder communities - with its operational future safeguarded,” said Richard Fleming, Managing Director of Alvarez & Marsal Europe LLP and Joint Administrator of NMC PLC and NMC Healthcare.