The group of hospital operators NMC is launching a plan that could help 34 companies in the scandalized group find their way out of the protective administration.
NMC Health Plc co-directors have launched a plan that could help the scandal-stricken hospital operator’s 34 businesses find a way out of their protective administration.
Under the Corporate Arrangement Proposals Acts, which Abu Dhabi-based NMC says have the backing of its creditors, the unsecured debt of some of the companies will be swapped for similar holdings in a new group, according to a statement released on Wednesday.
While the shares of the companies and âsubstantially allâ of the assets will be transferred to the new group, NMC Healthcare LTD will remain under administration âto pursue possible legal actionsâ against itself and other companies.
Creditors are expected to vote on the proposed plan on September 1. Once cleared by the global market courts in Abu Dhabi, the financial hub of the capital of the United Arab Emirates, the transfer of assets and shares is expected to take between three and five months.
NMC, which was once listed on the London Stock Exchange, collapsed in 2019, revealing it had more than $ 4 billion in undisclosed loans. In April, NMC finalized the sale of the Eugin Group, its lucrative fertility business, to German healthcare company Fresenius SE for $ 525 million.
The company is looking to sell UK-based Aspen Healthcare and a joint venture in Saudi Arabia, which are considered non-core to the business, co-director Benjamin Cairns said on a media conference call. Talks are underway with potential buyers, he said, without sharing a timetable for the sale.
Structure of the new NMC Group:
- All significant entities / assets will be transferred to a new operational entity
- Operational entity to be financed through a new $ 200 million term loan facility
- Additional $ 150 million bridging facility will be available until non-core sales are completed
- The operating company will be owned by a holding company, which will issue $ 2.25 billion in creditors’ facilities
- $ 7.1 billion in creditors claims received across all entities
The hospital operator reported first-half profit before interest, taxes, depreciation and amortization of $ 103.9 million, 50% more than forecast in its business plan. Gross revenue from NMC’s operations in the United Arab Emirates and Oman reached $ 611 million, 10% more than expected.
âOver the past 18 months, we have worked with our stakeholders and partners to stabilize the group’s financial position and improve its operations, thereby saving over $ 2 billion in value,â said Michael Davis, CEO of NMC Healthcare .
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