NMC Health Secures $250 Million Funds Despite Financial Scandals

Published August 4th, 2020 - 06:30 GMT
NMC Health Secures $250 Million Funds Despite Financial Scandals
NMC has developed a three-year business plan with a focused strategy that will deliver continued growth in its core UAE business. (Shutterstock)
 

NMC Health, the largest private healthcare provider in the UAE, said on Monday that it had secured a new $250 million financing facility for NMC group's operating businesses.

The beleaguered hospital operator, caught in a maelstrom of financial scandals and a whopping $6.6 billion debt pile, vowed that it would continue to co-operate with the authorities "to ensure that those who have committed illegal and criminal acts are brought to justice."

The group said in a statement that the new facility would be provided, contingent on planned second-phase restructuring.

"Alongside delivering increased financial stability for the group, the next phase of the process will see an increased focus on identifying and holding to account those responsible for the illegal and fraudulent actions which created this situation and still pose a threat to the group and its stakeholders," said Richard Fleming, managing director of Alvarez & Marsal Europe and joint administrator of NMC Health.

The London-listed NMC Health, the holding company for the hospital group, which went into administration in April after months of turmoil over its finances, said the developments would "create greater financial security for the business, ensuring it can continue to provide world-class healthcare for patients and stability for staff and suppliers."

Fleming said securing new funds, moving to the next phase of restructuring and the development of a three-year business plan have been significant milestones over the past few months since NMC went into administration.

"NMC is a strong business operationally and, as shown by our confidence in the three-year business plan, has significant potential. Success in the next phase of the restructuring will allow the group to continue to provide world-class health services to all its patients and underpin the provision of healthcare in the UAE," said Fleming.

"None of this would have been possible without the support of our numerous stakeholders. Our absolute priority has been and remains doing everything we can to help these key workers provide the highest quality patient care and services," said Fleming.

NMC, which is operating more than 200 facilities including hospitals, clinics and pharmacies, said it has developed a three-year business plan with a focused strategy that will deliver continued growth in its core UAE business. "As part of the business plan, Perella Weinberg Partners have been retained as the investment bank to explore the potential sale of the international businesses and advise on restructuring alternatives," it said.

"The administrators and NMC LLC, along with their advisors, will engage extensively with all financial stakeholders on the content of the business plan and share details of the restructuring to free the group from its historical debt burden," said the statement.


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