NMC Healthcare Group and Dubai Islamic Bank Reach Out-of-Court Settlement

NMC Healthcare Group and Dubai Islamic Bank have agreed to an “out-of-court settlement of all litigation,” according to a statement released on Tuesday. This resolution aims to resolve ongoing legal disputes between the entities and those involving third parties amicably.

Background:

The London-listed NMC Healthcare faced financial scandals that led to its collapse and delisting from the stock exchange. However, in March 2022, the Abu Dhabi-based NMC Healthcare emerged from administration in the UAE, allowing a newly formed holding company to establish a new direction.

Restructuring Process:

In September 2021, a significant majority of eligible creditors voted in favor of NMC’s restructuring plan, leading to the exit of operating companies from administration. 

Following legal approvals, 34 NMC operating companies completed a deed of company arrangement (DOCA) restructuring process under the Abu Dhabi Global Market (ADGM). These companies became subsidiaries of a new entity, NMC OpCo Ltd, under a newly constituted Board of Directors.

Settlement Details:

Under the settlement agreement, Dubai Islamic Bank will receive cash consideration, and Holdco notes to settle certain claims. 

The Holdco notes, issued to legacy creditors during the Abu Dhabi Global Market restructuring, represent instruments exchanged for their acknowledged claims.

Ownership Stake:

Dubai Islamic Bank will become an economic owner of NMC Holdco SPV LTD, the new NMC holding company incorporated in the ADGM. 

NMC Holdco, in turn, owns NMC operating companies through its wholly-owned subsidiary, NMC Opco Ltd, also incorporated in the ADGM. NMC Opco oversees and manages 85 healthcare facilities in the UAE and the broader region.