The appointment relates directly to 36 operating businesses in the UAE. The process will enable the administrators to undertake a financial restructuring to address the high levels of debt discovered earlier in the year. It will also allow the group of entities to secure an additional $325 million financing facility whilst protecting the businesses from creditor action. The appointment does not apply to NMC Healthcare's operating businesses outside of the UAE, stated a Press release.
The group of entities will now enter a "light touch" administration process whereby the existing NMC management team will remain in operational control of the day-to-day running of medical and clinical activities whilst the administrators lead the financial restructuring. All hospitals, medical centres, care facilities and other operations subject to administration will continue to operate as they have been to date. The NMC management team and the administrators will continue to work together with all relevant government entities, regulatory bodies and key stakeholders as appropriate.
Michael Davis, acting CEO and COO of NMC Healthcare, said: "This is a positive next step in NMC's restructuring process, allowing us to address the financial challenges we've faced since the fraud was uncovered earlier this year. NMC is a strong business operationally and we will continue to function as usual and care for our patients through the administration period. The financial restructuring will offer additional security to the company and allow us to continue to contribute effectively to the healthcare system in the UAE."
Richard Fleming, managing director of Alvarez & Marsal and joint administrator, said: "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 $325m of additional financing to ensure we have sufficient funds to support the business through the Covid-19 disruptions and financial restructuring process. All hospitals, medical centres, care facilities and other operations in the group affected by the administration will continue to operate as they have to date."
This move follows the appointment of Richard Fleming, Mark Firmin and Ben Cairns of Alvarez & Marsal as joint administrators of NMC Health PLC, the holding company of NMC Healthcare, on April 9, 2020. The joint administrators will continue to manage and investigate the affairs of NMC Health PLC.
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