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Fri 29 May 2020 02:24 PM

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Administrators say NMC Health will be dissolved or liquidated - reports

Company's preferential creditors could receive a dividend of approximately 100 pence

Administrators say NMC Health will be dissolved or liquidated - reports

Overall, banks in the UAE have disclosed more than $2 billion of exposure in NMC Health.

Administrators of embattled UAE-based healthcare provider NMC Health have admitted that the company will either be dissolved or liquidated, according to a report by news agency Reuters.

This, however, only applies to the holding company listed in London (NMC Health Plc) and not to any of the operating companies, which continue to operate as usual.

NMC Health was plunged into administration by a UK court in April following a request by Abu Dhabi Commercial Bank (ADCB), which has $981 million worth of exposure in the healthcare provider. ADCB has also launched criminal proceedings against a number of individuals from the company.

NMC Health has also been delisted from the London Stock Exchange, while the company is at the centre of an investigation by the UK’s Financial Conduct Authority.

Administrators, Alvarez and Marsal Europe, said it would not be possible to conclude the outcome of the process until all investigations into the company have progressed and the liability position is ascertained.

They also stressed that all of the constituent members of the wider NMC Group, the largest private healthcare provider in the UAE, were continuing as previously.

“This is a standard part of the formal process of administration for NMC Health Plc, the holding company that was listed on the London Stock Exchange, and does not in any way impact the ongoing trading of the wider Group,” joint administrator Richard Fleming is quoted as saying by Reuters.

Overall, banks in the UAE disclosed more than $2 billion of exposure, while Citigroup Inc. analysts estimated that the impact on the five UAE banks it covers would total about 23 percent of 2020 profit.

According to the report, the joint administrators also said that based on their current estimates, they anticipate the company’s preferential creditors could receive a dividend of approximately 100 pence.

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