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.
Profile
Company name: Jaib
Started: January 2018
Co-founders: Fouad Jeryes and Sinan Taifour
Based: Jordan
Sector: FinTech
Total transactions: over $800,000 since January, 2018
Investors in Jaib's mother company Alpha Apps: Aramex and 500 Startups
Company profile
Name: Back to Games and Boardgame Space
Started: Back to Games (2015); Boardgame Space (Mark Azzam became co-founder in 2017)
Founder: Back to Games (Mr Azzam); Boardgame Space (Mr Azzam and Feras Al Bastaki)
Based: Dubai and Abu Dhabi
Industry: Back to Games (retail); Boardgame Space (wholesale and distribution)
Funding: Back to Games: self-funded by Mr Azzam with Dh1.3 million; Mr Azzam invested Dh250,000 in Boardgame Space
Growth: Back to Games: from 300 products in 2015 to 7,000 in 2019; Boardgame Space: from 34 games in 2017 to 3,500 in 2019
2017%20RESULTS%3A%20FRENCH%20VOTERS%20IN%20UK
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At a glance - Zayed Sustainability Prize 2020
Launched: 2008
Categories: Health, energy, water, food, global high schools
Prize: Dh2.2 million (Dh360,000 for global high schools category)
Winners’ announcement: Monday, January 13
Impact in numbers
335 million people positively impacted by projects
430,000 jobs created
10 million people given access to clean and affordable drinking water
50 million homes powered by renewable energy
6.5 billion litres of water saved
26 million school children given solar lighting
More on Quran memorisation:
More on Quran memorisation:
The biog
Name: Gul Raziq
From: Charsadda, Pakistan
Family: Wife and six children
Favourite holes at Al Ghazal: 15 and 8
Golf Handicap: 6
Childhood sport: cricket
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
UAE currency: the story behind the money in your pockets
Royal wedding inspired menu
Ginger, citrus and orange blossom iced tea
Avocado ranch dip with crudites
Cucumber, smoked salmon and cream cheese mini club sandwiches
Elderflower and lemon syllabub meringue
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
The five pillars of Islam
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
The Florida Project
Director: Sean Baker
Starring: Bria Vinaite, Brooklynn Prince, Willem Dafoe
Four stars
TOURNAMENT INFO
Women’s World Twenty20 Qualifier
Jul 3- 14, in the Netherlands
The top two teams will qualify to play at the World T20 in the West Indies in November
UAE squad
Humaira Tasneem (captain), Chamani Seneviratne, Subha Srinivasan, Neha Sharma, Kavisha Kumari, Judit Cleetus, Chaya Mughal, Roopa Nagraj, Heena Hotchandani, Namita D’Souza, Ishani Senevirathne, Esha Oza, Nisha Ali, Udeni Kuruppuarachchi
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EYango%20Deli%20Tech%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EUAE%0D%3Cbr%3E%3Cstrong%3ELaunch%20year%3A%20%3C%2Fstrong%3E2022%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3ERetail%20SaaS%0D%3Cbr%3E%3Cstrong%3EFunding%3A%20%3C%2Fstrong%3ESelf%20funded%0D%3Cbr%3E%3C%2Fp%3E%0A
Opening Premier League fixtures, August 14
- Brentford v Arsenal
- Burnley v Brighton
- Chelsea v Crystal Palace
- Everton v Southampton
- Leicester City v Wolves
- Manchester United v Leeds United
- Newcastle United v West Ham United
- Norwich City v Liverpool
- Tottenham v Manchester City
- Watford v Aston Villa
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
