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ADCB seeks joint administrator role in NMC Health

Staff Report/Dubai
Filed on April 4, 2020
ADCB, as a substantial creditor, had demanded that NMC Health Group's Board of Directors undertake remedial actions to preserve the value of the business.

ADCB has around $981 million (Dh3.6 billion) exposure to London-listed firm.

Abu Dhabi Commercial Bank (ADCB) has applied to the UK's High Court for the appointment of joint administrators to safeguard the future of troubled NMC Health and its subsidiaries.

In a press statement released on Saturday, the bank said a notice was served to NMC Health on April 3, 2020 in this regard.

"Given the reported irregular activities, and NMC Health Group's defaults on its various debt commitments, ADCB, as a substantial creditor, had demanded that NMC Health Group's Board of Directors undertake remedial actions to preserve the value of the business, and to ensure that NMC Health Group would be managed with enhanced transparency and improved corporate governance in the interests of all stakeholders. However, NMC Health Group failed to respond adequately to these reasonable requests from ADCB," the UAE lender said.

ADCB last week said it has around $981 million (Dh3.6 billion) exposure to London-listed firm. NMC has piled up to $6.6 billion in debt, which is higher than previously estimated $5 billion.

If approved by the High Court, the joint administrators will take immediate control of the company and launch a full, transparent and independent investigation into the reported suspected irregular activities.

"ADCB is committed to protecting its interest and assuring the long-term sustainability of the Company as well as its operational effectiveness and non-disruption of its operations," said a statement released on Saturday.
The healthcare firm has an exposure to over 80 major financial institutions and ADCB continues to coordinate closely with a number of creditors.
- waheedabbas@khaleejtimes.com


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