Hospital group NMC Health has been placed into administration in the United Arab Emirates which allows the firm to stay open and pay September salaries.
After months of uncertainty surrounding the company, it has managed to ward off debt-claim enforcement.
NMC Health is one of the biggest private healthcare providers in the UAE. It has been thrown legal challenges since it was reported that it was in $4bn-$5bn in undisclosed debt and there were also reports of evidence of fraud.
On Sunday, at the courts of Abu Dhabi’s international financial centre, NMC applied for protection against enforcement of debt claims. This would help keep the business open during the coronavirus pandemic which is currently in its second wave in the UAE.
This will allow NMC to secure $325 million to protect 36 businesses (NMC’s related businesses) from creditor action.
These new appointments do not apply to any of NMC’s businesses outside of the UAE.
NMC will still retain the operational control of the hospitals and clinics. The administrators Richard Fleming and Ben Cairns of Alvarez & Marsal will handle the financial restructuring.
September staff salaries total to around $36 million and payments to vendors also need to continue.
Entering administration would bring stability to the firm after months of trouble and would see an opportunity for a restructuring process.
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