Administrators announce receipt of firm creditor commitments to ensure successful exit from Abu Dhabi Global Market administration.
On Monday, the administrators of troubled UAE-based NMC Group announced the receipt of firm creditor commitments that will ensure the successful exit of the company from Abu Dhabi Global Market (ADGM) administration.
Under proposals, the creditors will become the equity holders of the NMC business under a deeds of company arrangement (DOCA).
The joint administrators said in a statement that they will shortly propose and launch ADGM deeds of company arrangement that will allow the operating businesses to exit the restructuring process, with ownership moving to the creditors.
Richard Fleming, joint administrator of the DOCA Companies, said: “The resounding level of support from creditors reflects the positive sentiment towards the collective approach we have taken throughout this process to ensure the group optimises value for creditors.
“This is a hugely significant moment in the restructuring process of the Group and provides another layer of stability as we move onto the next chapter for NMC.”
In September, ADGM Courts appointed Richard Fleming and Ben Cairns of Alvarez & Marsal as administrators for NMC Healthcare’s group of operating companies and businesses.
As part of the move, the administrators led the financial restructuring of 36 NMC entities and enable them to secure an additional $325 million financing facility while protecting the businesses from creditor action.
In February, NMC Healthcare revealed revenues of $1.5 billion for 2020, down six percent on the previous year.
Founded by Indian entrepreneur Bavaguthu Raghuram Shetty (pictured above), NMC had a market value of $10 billion at its peak on the London Stock Exchange before allegations of fraud pushed it into administration.
The disclosure of more than $4 billion in hidden debt left many UAE and overseas lenders with heavy losses.
(Except for the headline, this story has not been edited by The Finance World staff and is published from a syndicated feed.)