NMC exits administration with strong focus on governance, culture and growth

The exit of the operating companies from administration follows a landmark agreement on September 1, 2021, when 95 per cent of eligible creditors, on a consolidated basis, voted in favour of the restructuring plan.


A Staff Reporter

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Published: Fri 25 Mar 2022, 6:33 PM

Last updated: Fri 25 Mar 2022, 6:36 PM

The core operations of NMC Healthcare Group have exited administration in the UAE, allowing a newly formed holding company to chart a fresh path in the provision of world class community-first healthcare.

Following various legal approvals, 34 NMC operating companies have completed a ‘deed of company arrangement’ (DOCA) restructuring process under the auspices of Abu Dhabi Global Market (ADGM).

The companies left administration on March 25, 2022 and are now subsidiaries of a new company, named NMC OpCo Ltd (NMC), overseen by a newly appointed and highly experienced board of directors.

The exit of the operating companies from administration follows a landmark agreement on September 1, 2021, when 95 per cent of eligible creditors, on a consolidated basis, voted in favour of the restructuring plan. As a result, unsecured creditors have settled claims on existing debt in exchange for ‘exit instruments’ in a new facility.

The new NMC, which is the largest integrated private healthcare platform in the UAE and the third largest in Oman, employs over 12,000 people and serves over 5.4 million patients annually through 11 hospitals and 54 community clinics and specialty care centres. Over the last two years, NMC’s talented team of healthcare professionals has conducted almost 4 million PCR tests – supporting the UAE’s highly effective programme to mitigate the health and economic impacts of the global pandemic.

Michael Davis, Chief Executive Officer of NMC, said: “An unwavering dedication to the community from our nurses, doctors and support staff has always been at the core of NMC’s values and will form the foundation of the company’s future success. Our teams have continued to deliver service excellence through the most challenging of times, playing a key role in the UAE’s world-leading response to the pandemic.

Over the past two years, we have built a company that we are all proud of – an organization that is open, honest, and transparent – and that continues to provide exceptional patient care, community service and clinical excellence. Today, we exit administration with a renewed sense of purpose, a clear direction, a strong focus on who we are here to serve and an unwavering commitment to driving the future growth of NMC, strengthened by the support of creditors and a new, highly qualified, and cohesive Board of Directors. We emerge today stronger, more resolute and resilient than ever and ready to chart our new path.”

Focus on robust governance and culture

The immediate priority of NMC’s new Board of Directors and management team is to embed a robust governance framework and implement a business plan that will drive the further growth and development of the company and its employees.

Building on a strong track record of training and upskilling employees, the company will continue to instil a strong and positive organizational culture, based on active listening, collaboration across business units, empowerment and accountability.

The composition of the new Board of Directors is designed to enhance the NMC’s breadth of expertise from both an operational and financial perspective. The seven Directors, selected by creditors with the largest holdings of NMC’s exit instruments, bring extensive experience in healthcare, restructuring, finance, law and corporate governance.

Kevin Taylor, Chairman of NMC, said: “By taking NMC into administration and running an effective restructuring process within ADGM’s transparent, fair and robust framework, the company is now well-positioned to embark on the next phase of its journey and growth. This process was vital because of the central role that NMC plays in the provision of quality healthcare to communities across the UAE, which has been highlighted by the total dedication of its employees throughout the global pandemic. The new Board is equally committed to the continued success of NMC in fulfilling its core purpose and will work in close collaboration with Michael and the management team, to shape a bright future for the company.”

Successful restructuring process

NMC Healthcare PLC entered administration in April 2020 following legal action taken by significant creditors in response to several developments at the company. The 34 operating companies subsequently filed for voluntary administration in ADGM in September 2020.

Joint administrators Alvarez & Marsal worked closely with creditors and a new management team at NMC, led by Chief Executive Officer Michael Davis, to design and implement a three-year business plan. The plan prioritized the provision of high-quality healthcare, while achieving financial stability through operational efficiency and the sale of non-core assets.

The successful restructuring of the operating companies within ADGM’s best-practice regulatory framework serves as a precedent in the UAE for taking a complex business through a transparent, fair and timely process to establish a new capital structure.

The United Kingdom-registered NMC Healthcare PLC and UAE-registered NMC Healthcare Ltd remain in administration while restructuring and legal issues related to these entities are resolved. — business@khaleejtimes.com

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