Dubai: NMC Health plc has secured a $250 million financing facility for the group's UAE operating businesses coming under the umbrella of NMC llc.
This will be provided as the hospital operator "enters a second-phase restructuring", said a statement. The funds have been provided "contingent on certain conditions, which the Group are close to completing," the statement adds.
These conditions will be covered by the start of a second-phase restructuring and as NMC llc begins delivery of a new three-year business plan.
* The plan involves a “light touch” administration to protect the operating businesses. The existing NMC llc management team would have operational control. All hospitals, medical centres, care facilities and other operations will continue to operate as they have to date.
* This process would allow for the injection of the new funding package to support operations and will also stop adverse creditor actions, allowing for an orderly process in the interests of all creditors.
The management team along with administrators from Alvarez & Marsal have developed a three-year business plan that will deliver "continued growth in its core UAE business".
NMC llc is a strong business operationally and has significant potential. Success in the next phase will allow the Group to continue to provide world-class health services to all its patients and underpin the provision of healthcare in the UAE
Selling overseas assets
The business plan will keep exploring the potential sale of the international businesses and advise on restructuring alternatives. The administrators and NMC llc will "share details of the restructuring to free the Group from its historical debt burden."
According to Richard Fleming, Managing Director of Alvarez & Marsal Europe and Joint Administrator of NMC Health, "Securing new funds, moving to the next phase of restructuring and the development of a three-year business plan are significant milestones.
“I want to acknowledge the extraordinary commitment of NMC LLC’s employees, medical staff and physicians. Our absolute priority has been and remains doing everything we can to help these key workers provide the highest quality patient care and services."
“The next phase of the process will see an increased focus on identifying and holding to account those responsible for the illegal and fraudulent actions which created this situation and still pose a threat to the Group and its stakeholders."
We continue to co-operate with the authorities to ensure that those who have committed illegal and criminal acts are brought to justice
