The administrators of NMC Health are looking to complete either a lender-led restructuring or a sale of the business by the end of April next year.
Advisers working on the restructuring also expect to achieve non-core asset sales quickly, with firm bids for the Luarmia IVF clinics based in Spain and UK-based private hospitals company Aspen Healthcare by early next month, they said on a call to NMC’s lenders on Wednesday.
“We want to complete this process and deliver the value to you as quickly as possible. We are trying to get to this point in Q1 2021,” Max Frangulov, managing director of administrators Alvarez & Marsal told lenders.
“Obviously, It’s a very complex situation and we have to resolve things that are popping up here and there all of the time, so we are pinning it at the first half of 2021.”
NMC Health is the UAE's largest private healthcare provider. The company, which was listed on the London Stock Exchange, was placed into administration in April after investigators highlighted "suspected fraudulent behaviour", uncovering debt of more than $6.6 billion, considerably higher than the $2.1bn recorded on its balance sheet. It was delisted from the exchange shortly.
The company’s administrators had three main objectives, Mr Frangulov said – saving the business, maximising returns to creditors and pursuing wrongdoers.
Following a second administration process in the Abu Dhabi Global Markets Courts last week, which provided protection from local creditor claims and triggered a $325 million funding facility from existing lenders, the business is now safe, Mr Frangulov said.
“We know that it’s going to continue, that it has liquidity to support its operations. And there will be [an] exit from administration, whether it’s going to be a sale of the business or a plan of reorganisation supported by lenders.”
Lenders will be asked to vote on the two options, a presentation accompanying the call showed. If a reorganisation cannot be agreed by the end of February, a sale process will begin, which will conclude by April 30 next year.
Under the reorganisation, the business would be recapitalised with $203m of secured debt and between $325m to $650m from an exit facility. Lenders would likely receive higher returns, but would need to wait for a longer period for the business to generate the necessary earnings to pay back claims. A sale process would provide cash more quickly, but proceeds are likely to be “much lower” than under a restructuring.
Up to Dh200m ($54.5m) is expected to be realised through the sale and winding down of the NMC Trading business, lenders were told. Agreements were made with three distributors to sell the NMC Trading business, which generated Dh60m in cash and reduced payables of Dh40m, as well as facilitating the transfer of about 600 to 800 employees.
A deal has also been agreed to sell NMC Trading's assets, such as cars and leases for warehouses, to Abu Dhabi-based Yas Holding for Dh45m. A separate Dh50m deal has also been agreed with Yas Holding for NMC’s Cytomed medical supplies business.
In terms of pursuing wrongdoers, an investigation report will be filed by December which will outline “details of the fraud that took place" and will identify "the perpetrators and any colluding parties”, Mr Frangulov said.
The report will also recommend a litigation strategy to recover assets.
“What is the size of the prize, if you will, where an opportunity [exists] to get some return of additional funds to the creditors that were defrauded in this process,” Mr Frangulov said.
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What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
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Director: Julian Schnabel
Starring: Willem Dafoe, Oscar Isaacs, Mads Mikkelsen
Three stars
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
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Who has been sanctioned?
Daniella Weiss and Nachala
Described as 'the grandmother of the settler movement', she has encouraged the expansion of settlements for decades. The 79 year old leads radical settler movement Nachala, whose aim is for Israel to annex Gaza and the occupied West Bank, where it helps settlers built outposts.
Harel Libi & Libi Construction and Infrastructure
Libi has been involved in threatening and perpetuating acts of aggression and violence against Palestinians. His firm has provided logistical and financial support for the establishment of illegal outposts.
Zohar Sabah
Runs a settler outpost named Zohar’s Farm and has previously faced charges of violence against Palestinians. He was indicted by Israel’s State Attorney’s Office in September for allegedly participating in a violent attack against Palestinians and activists in the West Bank village of Muarrajat.
Coco’s Farm and Neria’s Farm
These are illegal outposts in the West Bank, which are at the vanguard of the settler movement. According to the UK, they are associated with people who have been involved in enabling, inciting, promoting or providing support for activities that amount to “serious abuse”.
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The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
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School uniforms report
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
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World Mental Health Day
Key figures in the life of the fort
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
Sources: Jayanti Maitra, www.adach.ae
Saudi National Day
UAE squad
Esha Oza (captain), Al Maseera Jahangir, Emily Thomas, Heena Hotchandani, Indhuja Nandakumar, Katie Thompson, Lavanya Keny, Mehak Thakur, Michelle Botha, Rinitha Rajith, Samaira Dharnidharka, Siya Gokhale, Sashikala Silva, Suraksha Kotte, Theertha Satish (wicketkeeper) Udeni Kuruppuarachchige, Vaishnave Mahesh.
UAE tour of Zimbabwe
All matches in Bulawayo
Friday, Sept 26 – First ODI
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
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Ballon d’Or (Men’s)
Ousmane Dembélé (Paris Saint-Germain / France)
Ballon d’Or Féminin (Women’s)
Aitana Bonmatí (Barcelona / Spain)
Kopa Trophy (Best player under 21 – Men’s)
Lamine Yamal (Barcelona / Spain)
Best Young Women’s Player
Vicky López (Barcelona / Spain)
Yashin Trophy (Best Goalkeeper – Men’s)
Gianluigi Donnarumma (Paris Saint-Germain and Manchester City / Italy)
Best Women’s Goalkeeper
Hannah Hampton (England / Aston Villa and Chelsea)
Men’s Coach of the Year
Luis Enrique (Paris Saint-Germain)
Women’s Coach of the Year
Sarina Wiegman (England)
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1.
2.
3.
4.
5.
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- 600-seat auditorium
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3/5
(Tagalog with Eng/Ar subtitles)
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