"Abu Dhabi Commercial" welcomes the approval of "NMC" creditors to restructure its debts
Abu Dhabi Commercial Bank, "the Bank", welcomed the approval of the creditors of the "NMC Group" to restructure the company's debts and to issue "exit tools" to creditors.
As one of the major creditors of “NMC”, Abu Dhabi Commercial Bank has taken proactive legal measures since February 2020 that resulted in placing the parent company of the “NMC” group in the United Kingdom under judicial guardianship, which later led the company to voluntarily file a lawsuit with The courts of the Abu Dhabi Global Market to place it also under judicial custody, as the best way to ensure the rescue of the company and the continuity of its operations. These measures also ensured the achievement of the interests of patients, medical staff and all other concerned parties, especially in light of the repercussions of the global pandemic. This proactive measure came as a result of the developments witnessed by the company after its statements about allocating debts amounting to more than 4 billion US dollars that were not previously disclosed.
Abu Dhabi Commercial Bank continued to cooperate closely with the rest of the creditors to support the company's receiver, who prepared a three-year action plan to maintain and improve the value of the company through its core operations, liquidate its non-core assets, and reduce its debts in preparation for its restructuring.
In line with this approach, ADCB has participated in providing financing facilities to ensure the continuity of operational business and support the implementation of the business plan and restructuring.
In return, the participants in these facilities were granted the rights to raise and transfer their shares in an amount equal to the size of their participation.
After exercising these rights, it is expected that Abu Dhabi Commercial Bank will receive approximately 39% of the convertible exit instruments in new facilities amounting to $2.25 billion, and this is equivalent to the expected future value of NMC.
The shareholders of the new facilities will receive returns in exchange for these financings, which will eventually be paid from the proceeds of the sale of the core business at a later stage with the possibility that the shareholders will also benefit in the event of a future increase in the value of the company, in addition to any refunds by the company from other legal cases.
With this substantial progress in the restructuring process, the bank considers that the provisions that have been set aside to cover the loans of the "NMC" company so far are sufficient and appropriate.
In its responsible attitude, ADCB takes into account the protection of its rights and interests in the company in the medium and long term, and will continue to take a supportive approach to ensure the provision of high-quality healthcare to patients and the community at large, thus enhancing the profitability and valuation of the company in the future.
Abu Dhabi Commercial Bank will nominate three out of seven non-executive board members who will be chosen by the participants in the financing facilities for membership in the board of directors of "NMC" Holding Company.
Follow our latest local and sports news and the latest political and economic developments via Google news