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Mon 2 Mar 2020 09:47 AM

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NMC said to hire Moelis & Co to advise on debt restructuring

Italian hospital operator Gruppo Ospedaliero San Donato SpA is said to be studying a possible offer for NMC Health

NMC said to hire Moelis & Co to advise on debt restructuring

NMC Healthcare played an important role in expending Abu Dhabi’s once underdeveloped medical sector and was the first Abu Dhabi company to list shares in London. 

Embattled Abu Dhabi based NMC Healthcare has hired global independent investment bank Moelis & Co to advise on debt restructuring, according to a Reuters report.

Citing unnamed sources, Reuters reported that NMC had hired Moelis in relation to its ability to meet its debt obligations.

The Reuters report said that that Standard Chartered Plc, First Abu Dhabi Bank PJSC and HSBC Holdings Plc are among the banks that provided debt to the company.

The news follows allegations that the company has overpaid for assets, inflated cash balanced and understated its debt.

Possible offer

A separate report from Bloomberg reported that Italian hospital operator Gruppo Ospedaliero San Donato SpA is studying a possible offer for NMC Health.

It had been previously reported that Abu Dhabi’s Mubadala is in early discussions to look “at a range of options” for NMC, including the purchase of a stake and taking a board seat.

The sources added that while discussions are ongoing, there is no guarantee of a transaction as a result of the complex issues NMC is facing.

Representatives of Mubadala and NMC declined to comment on the report.

NMC Healthcare played an important role in expending Abu Dhabi’s once underdeveloped medical sector and was the first Abu Dhabi company to list shares in London. Its market capitalisation peaked at over $10 billion in August 2018. It is now worth $2.5 billion.

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