Abu Dhabi’s KBBO Said to Get Creditor Approval for Debt Revamp

KBBO Group and its hospitals unit have received creditor approval for a debt restructuring plan, two years after the Abu Dhabi-based investment firm’s founder filed for bankruptcy, Bloomberg News reported. Creditors approved Emirates Hospitals Group’s plan earlier this week, according to people familiar with the matter and a presentation seen by Bloomberg News. The deal allows Emirates Hospitals to stave off liquidation and paves the way for a sale of the company by 2025. KBBO also received the go-ahead this month, the people said, asking not to be named because the information isn’t public. The Abu Dhabi court has to now ratify both restructurings. The firm, whose creditors include Mashreqbank and Dubai Islamic Bank PJSC, has a debt pile of more than $2 billion, Bloomberg News has reported. The case marks one of the first instances of a large conglomerate using the United Arab Emirates federal bankruptcy regime to restructure, indicating domestic insolvency laws are maturing. KBBO was one of the biggest shareholders in NMC Health, and its founder Khalifa Bin Butti Omair Al Muhairi was the vice-chairman of the London-listed firm. Al Muhairi filed for bankruptcy in an Abu Dhabi court in 2021 following NMC’s collapse, and as his portfolio companies were impacted by the Covid pandemic. Later that year, a local court ordered the restructuring of KBBO and the assets of fellow NMC shareholder, Emirati businessman Saeed Mohamed Butti Mohamed Al Qebaisi. In parallel, Emirates Hospitals, a major UAE health-care services provider with about 2,000 employees, was also being restructured. The firm raised 150 million dirhams ($40.8 million) from special situations firm Fidera last year. Read more.