UAE Hospital Group NMC Begins Process to Exit Administration

FILE PHOTO: General view of NMC specialty hospital in Abu Dhabi, United Arab Emirates, February 11, 2020.
REUTERS/SATISH KUMAR
FILE PHOTO: General view of NMC specialty hospital in Abu Dhabi, United Arab Emirates, February 11, 2020. REUTERS/SATISH KUMAR
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UAE Hospital Group NMC Begins Process to Exit Administration

FILE PHOTO: General view of NMC specialty hospital in Abu Dhabi, United Arab Emirates, February 11, 2020.
REUTERS/SATISH KUMAR
FILE PHOTO: General view of NMC specialty hospital in Abu Dhabi, United Arab Emirates, February 11, 2020. REUTERS/SATISH KUMAR

UAE hospital operator NMC said on Wednesday its companies will begin the process of exiting the administration process in Abu Dhabi, creating a new entity controlled by its creditors with a future value of $2.25 billion.

NMC, the largest private healthcare provider in the UAE, ran into trouble last year after the disclosure of more than $4 billion in hidden debt left many UAE and overseas lenders with heavy losses, Reuters reported.

Its UAE operating businesses were placed into administration in the courts of Abu Dhabi's international financial centre ADGM. Claims from creditors rose to $7.1 billion with the majority of $6.7 billion relating to financial creditor claims, the company said in a presentation on Wednesday.

A new NMC Group will be established, while all material entities and assets will be transferred to a new operating entity, it said in a separate presentation.

The operating entity will be owned by a holding company with a future expected value of $2.25 billion, it said.

Creditors will each receive a portion of the $2.25 billion debt claim equal to the expected future value of New NMC Group and will get interest payments for these facilities, it said.

"We have brought the company back from the brink of near total collapse to secure NMC's future and to ensure that our ability to provide world-class patient care is preserved – through thick and thin," Chief Executive Michael Davis said in a statement.

"The first half of 2021 is like daylight compared to the dark nights of the first half of 2020."

NMC said after overwhelming support from creditors, the joint administrators Alvarez & Marsal have proposed deeds of company arrangement (DOCAs), which will allow 34 companies of the NMC group to exit administration.

There will be a creditors' meeting to vote on the proposed DOCAs on Sept 1. Once confirmed by the ADGM courts, it is anticipated it will take three to five months to complete the transfer of shares and assets, it said.



Saudi Mineral Resources Minister, US Energy Secretary Discuss Strengthening Strategic Cooperation 

The Saudi and American delegations meet at the Ministry of Industry and Mineral Resources on Sunday. (SPA)
The Saudi and American delegations meet at the Ministry of Industry and Mineral Resources on Sunday. (SPA)
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Saudi Mineral Resources Minister, US Energy Secretary Discuss Strengthening Strategic Cooperation 

The Saudi and American delegations meet at the Ministry of Industry and Mineral Resources on Sunday. (SPA)
The Saudi and American delegations meet at the Ministry of Industry and Mineral Resources on Sunday. (SPA)

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef held official talks on Sunday with US Secretary of Energy Chris Wright as part of his current visit to the Kingdom.

The talks at the ministry headquarters in Riyadh focused on strengthening the strategic relationship between Saudi Arabia and the US in the mining and minerals sector.

They explored ways to expand cooperation in the mining sector and emphasized the importance of minerals in the energy transition, advanced technology industries, and modern economies linked to clean energy, as well as their significance in the electric vehicle industry and its components.

The two sides discussed ways to boost economic cooperation and high-value investment opportunities in both countries and the enablers available to leverage these opportunities in support of deepening their longstanding partnership.

Alkhorayef invited the US energy secretary to attend the Future Minerals Forum, which will be held in Riyadh next year.

Wright later visited the King Fahd University of Petroleum and Minerals (KFUPM) in Dhahran. He was welcomed by Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz, KFUPM President Muhammad Al-Saggaf, and senior university officials.

Wright was briefed on the university's academic and research specializations, as well as its efforts to foster innovation and develop human capital in the fields of energy, engineering, and science. He met with faculty members and students and learned about the university's initiatives to advance educational and research programs in line with the highest international standards.

He was introduced to KFUPM’s international collaboration and academic exchange programs, particularly those with leading US institutions, which are designed to foster knowledge sharing, encourage joint learning, and provide students with global exposure that enhances both their academic growth and career prospects.

This visit underscores KFUPM’s role as a leading academic and research institution in the energy sector and strengthens research and academic cooperation between Saudi Arabia and the US.