UPDATE 2-Alvarez and Marsal appointed directors of NMC Healthcare in the United Arab Emirates
DUBAI, Sept. 27 (Reuters) – Restructuring consultancy firm Alvarez & Marsal announced on Sunday that it has been appointed a director of a group of companies linked to NMC Healthcare by the Abu Dhabi global market courts.
Richard Fleming and Ben Cairns of Alvarez & Marsal have been appointed joint directors, the company said in an emailed statement, adding that the administrative process would address “high levels of corporate debt.”
NMC Healthcare’s London-listed holding company NMC Health Plc is already run by Alvarez & Marsal after taking office in April after months of financial turmoil.
The turnaround specialist said on Sunday that the appointment directly affected 36 companies operating in the United Arab Emirates, but did not apply to companies outside the country.
The appointment “will also allow the group of entities to obtain an additional financing facility of $ 325 million while protecting the companies from the actions of creditors,” said Alvarez & Marsal.
The directors would lead the financial restructuring of these companies while NMC’s existing management team would remain in operational control of the day-to-day management of medical and clinical activities, he said.
NMC Health is the largest private healthcare provider in the UAE, operating more than 200 facilities including hospitals, clinics and pharmacies.
Its implosion this year amid allegations of fraud and the disclosure of over $ 4 billion in hidden debt has left some lenders in the UAE and abroad with heavy losses and sparked legal battles in an attempt to recover the amounts due.
Reporting by Hadeel Al Sayegh and Davide Barbuscia; edited by Barbara Lewis and David Evans