NMC begins process to exit administration

NMC Healthcare Ltd said on Wednesday posted strong first-half revenue, and said its companies would begin the process of exiting the administration process in Abu Dhabi.

Richard Fleming, managing director of Alvarez & Marsal Europe and joint administrator of NMC PLC and NMC Healthcare, said he was “looking forward to chairing the meetings on 1 September as the next step to delivering the purpose of the administration: to return 34 companies to full operation as going concerns.”

“We have worked closely with NMC Healthcare’s stakeholders on a long-term approach that will deliver maximum returns to creditors while ensuring NMC’s survival as a value-generating going concern. The deeds of company arrangement (DOCA) provide the best and most appropriate mechanism to both secure NMC’s position to deliver first-class patient care, while enabling the group to continue its restructuring and performance improvement program,” said Fleming.

The statement said the joint administrators continue to work on resolution of various creditor and administrative issues, including on-going arbitration, and preparation for legal cases against bad actors involved in previous fraud.

NMC, currently grappling with huge debts in the aftermath of financial scandals and irregularities involving some its former top executives, said its gross revenues in the UAE and Oman business of $611 million was 10 per cent ahead of the business plan despite the impact of a second wave of Covid-19 in February and Ramadan in April and May.

The number of patient encounters across the group has grown significantly to 4.4 million patient encounters year-to-date (2020 2.4 million patient encounters) as full operating capacity has returned in the wake of Covid-19. In its on-going efforts to support the UAE’s Covid-19 response, the group administered 98,919 vaccinations and 1.7 million PCR tests in H1, a company statement said.

NMC ran into trouble last year after the disclosure of more than $4 billion hidden debt following the fleeing of its top executives, including its founder BR Shetty.

The group’s UAE operating businesses were placed into administration in the courts of Abu Dhabi’s international financial centre ADGM. Claims from creditors to date amount to $6.4 billion, the company has said.

“We have brought the company back from the brink of near total collapse to secure NMC’s future and to ensure that our ability to provide world-class patient care is preserved -- through thick and thin,” said its chief executive, Michael Davis.

“The first half of 2021 is like daylight compared to the dark nights of the first half of 2020.”

“Over the past 18 months we worked with our stakeholders and partners to stabilise the group’s financial position and improved operations, saving over $2 billion of value in the process. But more importantly, I’m tremendously proud of the contribution that our 12,000 clinicians and support staff make to their communities across the UAE every day. As we return to normalized capacity levels, I am excited to explore the true potential of NMC Healthcare across our multi-specialty portfolio,” said Davis.

-- issacjohn@khaleejtimes.com