NMC Health, an Abu Dhabi-based hospital chain, has secured a $250-million financing facility, conditional on a planned second-phase restructuring that would help the group to continue its operations, according to a statement by its administrators from Alvarez & Marsal.
The funding agreed by NMC LLC's leading lenders in the UAE will provide the financial security for the business and will ensure that it can provide healthcare for patients and stability for staff and suppliers.
This will be provided as the hospital operator "enters a second-phase restructuring”. The funds have been provided "contingent on certain conditions, which the Group are close to completing," the statement added.
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 restructuring plan involves a “light touch” administration, or a similar process, for NMC LLC to protect the operating businesses. The existing NMC LLC management team would remain in operational control and all hospitals, medical centres, care facilities and other operations will continue to operate as they have to date, a statement from Alvarez & Marsal said.
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 of NMC LLC along with Alvarez & Marsal, has developed a three-year business plan with a focused strategy that will deliver continued growth in its core UAE business.
As part of the business plan, Perella Weinberg Partners have been retained as the investment bank to explore the potential sale of the international businesses and advise on restructuring alternatives.
Richard Fleming, Managing Director of Alvarez & Marsal Europe LLP and Joint Administrator of NMC Health PLC, said: “Alongside delivering increased financial stability for the Group, 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," he added.
NMC Health went into administration in April after months of turmoil following questions over its financial reporting.
Leading lender in Abu Dhabi, ADCB, had an exposure of about $981 million to NMC Health. ADCB has filed charges against six NMC Health officials, including shareholders. The names include Dr. B.R. Shetty, founder and former chairman, and also a former CEO.
(Reporting by Seban Scaria; editing by Daniel Luiz)
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