Restructuring consultancy Alvarez & Marsal said, it had been appointed as administrator of a group of operating businesses related to NMC Healthcare by the Abu Dhabi Global Market Courts.
Richard Fleming and Ben Cairns of Alvarez & Marsal have been appointed as joint administrators, the firm said in an emailed statement, adding the administration process would address the “high levels of debt in the businesses”.
NMC Healthcare’s London-listed holding company NMC Health Plc is already being run by Alvarez & Marsal after going into administration in April following months of turmoil over its finances.
The turnaround specialist said on Sunday the appointment related directly to 36 operating businesses in the United Arab Emirates, but did not apply to businesses outside the country.
The appointment “will also allow the group of entities to secure an additional $325 million financing facility whilst protecting the businesses from creditor action,” Alvarez & Marsal said.
The administrators would lead the financial restructuring of those businesses while the existing NMC management team remained in operational control of the day-to-day running of medical and clinical activities, it said.
NMC Health is the largest private healthcare provider in the UAE, operating more than 200 facilities including hospitals, clinics and pharmacies.
Its implosion this year amid allegations of fraud and the disclosure of more than $4 billion in hidden debt has left some UAE and overseas lenders with heavy losses and prompted legal battles to try and recover money owed.
Sourced from Reuters - written by Hadeel Al Sayegh and Davide Barbuscia