Administrators appointed for NMC businesses in UAE

 

The administrators will lead the financial restructuring of 36 NMC entities and enable them to secure an additional US$325m financing facility, whilst protecting the businesses from creditor action.

The NMC Group will be subject to guardianship procedures. All hospitals, medical centres and clinics under the guardianship will continue to provide health care services to patients. The group’s management team and the two legal guards will also work in coordination with government agencies, regulatory and legislative bodies, and relevant stakeholders.

This is a light touch administration that will protect NMC from aggressive creditor action whilst bringing new funding and addressing the level of debt in the business. As part of the administration, the administrators have arranged US$325m of additional financing to ensure there are sufficient funds to support the business through the Covid-19 disruptions and financial restructuring process.

The group inaugurated its new NMC Royal Medical Centres in Karama and Shahama earlier in the year. It also opened its CosmeSurge Hospital in Jumeirah, Dubai in July 2020. Most NMC hospitals are heavily involved in regional and global medical tourism.

Founded by Indian entrepreneur Bavaguthu Raghuram Shetty, NMC had a market value of US$10bn at its peak on the London Stock Exchange before allegations of fraud pushed it into administration. The firm has revealed US$4 billion of undisclosed borrowings, giving it a total debt of US$6.6bn.

Shetty claims that he is the victim of a fraud that also resulted in the administration of NMC’s sister company, foreign-exchange operator Finablr

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