Abu Dhabi’s ADCB sees creditors approval for NMC restructuring in first half
The bank recorded $450m in provisions and interest in suspense toward NMC, Finablr and associated companies last year
Abu Dhabi Commercial Bank, one of the biggest lenders to NMC Health, expects creditors’ approval for a restructuring plan for the collapsed hospital operator in the first half.
The bank recorded Dhs1.66bn ($450m) in provisions and interest in suspense toward NMC, Finablr 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
Founded by Indian entrepreneur Bavaguthu Raghuram Shetty, NMC had a market value of $10bn at its peak on the London Stock Exchange before allegations of fraud pushed it into administration last year.
The firm revealed more than $4bn of undisclosed borrowings, giving it a total debt of $6.6bn. 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 Bank said its combined exposure to NMC and Finablr totaled $1.16bn.
