NMC Healthcare Ltd said it has obtained creditors’ approval for the restructuring process which allows most of the hospital operator’s business to leave administration.
NMC won 95% of the votes from eligible creditors for the acts of the corporate arrangement proposals, according to a statement from the UAE’s largest private medical service provider.
A local Abu Dhabi court has yet to confirm the vote, NMC said. It could then take up to five months to end the process and allow 34 NMC operational entities to leave the administration, he said.
NMC Healthcare will remain under administration to pursue claims which, if successful, will be distributed to certain creditors. The founder of NMC recently accused the audit firm of Ernst & Young LLP of covering up the fraud from investors.
NMC Health Plc, most of whose assets and companies are transferred to the new group, was formerly listed on the London Stock Exchange. It collapsed in 2019 after revealing it had more than $ 4 billion in undisclosed loans. NMC was put into receivership almost a year ago to prevent the business from collapsing.
The restructuring of NMC was the first such case to be heard by the Global Market Court in Abu Dhabi, the financial center of the capital of the United Arab Emirates.
The company said that ADGM’s insolvency rule “has proven to be robust in taking on a complex business, with an overhang of massive fraud, through a transparent and fair process for setting the capital structure and ensuring long-term viability, while simultaneously restoring the stability of the company ”.
NMC CEO Michael Davis said the vote marked “a new dawn” for the group, which employs 11,500 people.
“The story is not over with NMC Healthcare, and we look forward to our next stage of growth working with our new owners and our continued journey to NMC 2.0,” he said.