ADCB Sees Creditors Approval for NMC Restructuring in First Half

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Abu Dhabi Commercial Bank PJSC, one of the biggest lenders to NMC Health Plc, expects creditors’ approval for a restructuring plan for the collapsed hospital operator in the first half.

The bank recorded 1.66 billion dirhams ($450 million) in provisions and interest in suspense toward NMC, Finablr Plc and associated companies last year, according to a statement. ADCB is “comfortable” with the provisioning levels, “given the positive developments in NMC’s recent financial performance and its ongoing restructuring process,” it said.

ADCB also said on NMC:

• The sale of non-core assets underway
• Bank has initiated multiple recovery and enforcement actions against key promoters and former shareholders of NMC
• Continues to work closely with administrator Alvarez & Marsal and other key creditors on a restructuring plan
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Founded by Indian entrepreneur Bavaguthu Raghuram Shetty, NMC had a market value of $10 billion at its peak on the London Stock Exchange before allegations of fraud pushed it into administration last year. The firm revealed more than $4 billion of undisclosed borrowings, giving it a total debt of $6.6 billion. Shetty has said that he is the victim of a fraud that also resulted in the administration of NMC’s sister company, foreign-exchange operator Finablr.

Last year, Abu Dhabi Commercial Banksaid its combined exposure to NMC and Finablr totaled $1.16 billion.

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