NMC's UAE entity weighs restructuring in Abu Dhabi
Move would help create framework for recognition of debt claims while administrators finalise scheme of arrangement with creditors
Troubled hospital operator NMC Health's entity in the UAE, NMC Healthcare, is considering applying for restructuring and insolvency proceedings locally, two sources familiar with the matter said.
The move comes three months after NMC Health, the London-listed holding company for the hospital group, went into administration in April after months of turmoil over its finances.
The two sources told Reuters that NMC Healthcare was looking at options to file under the jurisdiction of Abu Dhabi Global Markets (ADGM), which has its own laws relating to insolvency and corporate restructuring.
Such a move would help create a framework for the recognition of debt claims while the administrators of NMC Health finalise the scheme of arrangement with creditors, one of the sources said.
A third source said the ADGM move is an option to obtain protection from the court from any enforcement proceedings from creditors, similar to Chapter 11 in the United States.
A scheme of arrangement is a binding agreement about payment of all, or part of, a firm's debts over a period of time.
The administrators for NMC Health declined to comment.
The ADGM Registration Authority does not comment on its regulatory operations or disclose its engagements with external entities publicly, it said in an e-mail.
NMC's operating entities were unaffected by the appointment of administrators in April and services continued.
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