Abu Dhabi-based KBBO Group, once one of NMC Health Plc’s biggest shareholders, plans to restructure its debt and is weighing strategic options for the business, people familiar with the matter said, Bloomberg News reported. KPMG LLP is advising the privately-held investment firm on the asset review along with ways to address the company’s debt load, according to the people, who asked not to be identified because the information is private.
United Arab Emirates
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Abu Dhabi Commercial Bank said it has launched a criminal complaint in the capital of the United Arab Emirates in relation to NMC Health, the healthcare group that was put into administration in the UK last week and owes the bank nearly $1bn, the Financial Times reported.
NMC Health Plc’s biggest creditors have set up a coordinating committee, taking a major step toward restructuring the $6.6 billion debt pile of the Middle Eastern hospital operator, Bloomberg News reported. The company asked Abu Dhabi Commercial Bank PJSC to chair a coordinating committee of debtholders, NMC’s acting chief executive officer, Michael Davis, wrote in a letter to lenders dated Monday. Deloitte and Clifford Chance LLP have been appointed to advise the committee while Lazard Ltd.
NMC Health’s administrators have sought to reassure staff that the scandal-ridden hospital operator will still be able to help the United Arab Emirates battle the coronavirus pandemic, the Financial Times reported. As the largest private healthcare provider in the UAE, NMC has an important role in preparing the Gulf state to cope with the outbreak, which has already claimed 22 lives from about 4,100 cases.
Healthcare company NMC Health said on Wednesday it expects to be placed into administration in due course, following weeks of uncertainty relating to its debt levels and undisclosed shareholder dealings, Reuters reported. NMC said in a statement it was unable to reach agreement with its creditors despite strenuous efforts to address their concerns. Abu Dhabi Commercial Bank, one of the major lenders to NMC Health, filed an application earlier this month in a UK court to put the company into administration.
NMC Health Plc convertible bondholders are working with PJT Partners Inc. as the troubled Middle Eastern hospital operator prepares for a restructuring, people with knowledge of the matter said, Bloomberg News reported. PJT is advising a group of investors in NMC Health’s $360 million of convertible bonds due 2025, the people said, asking not to be identified because the information is private.
Abu Dhabi-based Gulf Marine Services (GMS) said on Tuesday it had reached an agreement with its syndicate of banks to restructure its debt that will help it weather the coronavirus crisis, gCaptain reported. London-listed GMS provides support vessels for offshore oil and gas and other energy installations. It has been hurt by a downturn in the oil and gas services industry triggered by a prolonged slide in oil prices that has turned into a deep slump since the coronavirus crisis destroyed demand and a production cut agreement between OPEC and its allies collapsed.
A decade after the global financial crisis pushed Dubai’s real estate sector -- known for its outlandish projects such as man-made palm-shaped islands -- to the brink of collapse, the deadly coronavirus pandemic threatens to send it back there again, Bloomberg News reported. S&P Global Ratings is warning that home prices could slump to 2010 levels as unemployment across key sectors such as tourism and retail eviscerates demand. Prices are currently about 5% to 10% above what they reached a year after the debt crisis in 2009, according to data from real estate services firm Asteco.
Limitless World LLC is close to hiring financial and legal advisers for the Dubai-based developer’s third restructuring as the emirate’s on-going property slump is set to worsen, Bloomberg News reported. The company told creditors that it’s in the “final stages” of engaging advisers to work on a restructuring plan as it’s “unable to pay accrued profit at the end of March,” according to a letter sent to banks and seen by Bloomberg. Limitless’ board has recently been reorganized to comprise three members, who are being advised “on all matters” by a team from Dubai World, the letter said.
Troubled UAE hospital operator NMC Health said on Tuesday its debt pile now stood at $6.6 billion, much higher than earlier estimates, and that it has appointed a former PwC partner as chief restructuring officer to tackle the problem, Reuters reported. The company, which has been in crisis since U.S. firm Muddy Waters' short attack, revised its debt position from $5 billion earlier in March, and named Matthew J.