The United Kingdom’s Supreme Court issued its decision yesterday, appointing a court guard for NMC Healthcare, in response to the request made by Abu Dhabi Commercial Bank, and the company’s failure to object to this request.

In turn, the Board of Directors of the "NMC Health" group confirmed that they have not reached an agreement with the creditors that protects the company from executing the legal guardianship over it.

Judicial guard

In detail, the United Kingdom’s Supreme Court issued its decision yesterday, appointing a guard against “NMC Healthcare” (NMC) or “The Company”, in response to the request made by Abu Dhabi Commercial Bank “Abu Dhabi Commercial Bank Group” or “ The bank », and the company does not object to this request.

ADCB and other chief lenders of the company concluded that the appointment of a judicial guard is the most appropriate way for the future of NMC and its subsidiaries, the stability of its business, the continuity of operational operations, the achievement of the interest of patients and the medical staff and all other parties involved, and that the appointment of a judicial guard aims to: Fast recovery and stability of business activity, completely different from liquidating company business.

Preemptive action

The bank confirmed, in a statement yesterday, that this pre-emptive action to appoint a judicial guard over the company came as a result of the recent developments witnessed by the company, after its statements about allocating debts worth more than four billion US dollars that were not previously disclosed, which places the company at risk of bankruptcy.

It has also become clear that the company has not disclosed important information related to its business and its financial and credit status to its lenders and shareholders, credit rating companies and the regulatory agencies overseeing its business, as it had revealed the possibility of suspicions about some of the company's business and financial activities, without specifying The details of these suspicions, which directly affected the financial and credit situation of the company and its subsidiaries, and the interests of Abu Dhabi Commercial Bank and other major parties involved in its business. Abu Dhabi Commercial Bank's request to appoint a judicial guard was expressly supported by a number of the main lenders of the company and its subsidiaries, as these bodies have expressed serious concern about the group's cash position, and that former members of the board of directors and the executive management team are still occupying Important positions in the company and its subsidiaries.

company management

The company «Alvarez & Marsal» will immediately assume responsibility for the judicial custody of the company, whereby the judicial guard will manage all the business of the company and its subsidiaries on behalf of all parties involved in its business. The main priority today is to work for the stability and continuity of the operational and service operations provided by the company and its subsidiaries, and in all its health care centers. The Judge will also undertake the task of setting an effective framework for corporate governance in the company and its subsidiaries, and conducting a comprehensive and independent investigation that commits transparency in all its phases, to investigate possible illegal activities and practices that may have been committed in the company or any of its subsidiaries, in preparation for attempting to recover any Assets and funds. In addition, the Board of Directors of the "NMC Health" group, in a letter sent to the London Court, confirmed that they have not reached an agreement with the creditors that protects the company from executing the legal guardianship of it, despite the efforts made by the Board of Directors to achieve an agreement that brings together all the creditors. And get their support during the next stage. And it became clear that the company would not be able to resist the pressures it seeks to push towards legal guardianship. "Unfortunately, things seem to be moving towards putting the company under guardianship, and this trend is unavoidable, and this possibility has become a reality, and we should all work to move to this stage," said Faisal Belhoul, CEO of the Executive Board of the NMC Health Group, in a statement. Quickly without delaying any procedures, and at the same time ensuring that the company is stable, and its ability to provide vital health care to people, and support the efforts of the government and the UAE during the crisis (Covid-19) ».

He added, “The executive management of the company must be maintained to ensure a rapid response to the changes in events, especially at the current time when we need all efforts in the health services sector. And enabling our medical personnel and front-row experts to obtain the necessary resources and full support in their work. ”

He continued: «In light of this decision, the banks and creditors supervising the trusteeship must commit to providing credit facilities, ensuring that the company has the necessary liquidity to continue its health care operations, and fulfill its commitment to support the salaries of thousands of health care workers during this period.

Lenders

ADCB confirmed that it is committed to cooperating with the Judicial Guard, other lenders, parties involved in the company's business and regulatory bodies to investigate the necessary form of suspicious business that may have occurred in the company and its subsidiaries, and to bring the involved parties to justice. The bank is also committed to providing credit facilities to finance the working capital in the short term, as soon as the judicial guard starts assuming his duties in the company, in order to contribute to the conduct of the company and its subsidiaries in the coming stage.