UAE - Mubasher: The creditors of NMC Group have approved the restructuring process of the company's debt and issuance of exit instruments to the creditors.

Abu Dhabi Commercial Bank (ADCB), one of NMC's largest creditors, has welcomed the approval on the restructuring plan, under which a new $2.25 billion entity, controlled by the creditors, will be formed and 34 NMC companies will be allowed to exit administration in Abu Dhabi, according to a press release on Wednesday.

ADCB is expected to receive around 39% of transferable exit instruments in the new facility.

Participants in the exit instruments will receive interest payment for the facility, which will be repaid from the proceeds generated from a sale of the business at a later stage.

NMC has been placed into administration in the courts of Abu Dhabi Global Market (ADGM) due to several developments, including the disclosure of hidden liabilities of over $4 billion.

The Chief Executive Officer, Michael Davis, said: "The road to get here started in February 2020, and we are grateful for the support from our broad community of stakeholders including our creditors, suppliers, the Joint Administrators, and the ADGM for helping set the company on a stable footing while our dedicated staff continued to serve our loyal patient base."

Meanwhile, the Managing Director of Alvarez & Marsal Europe LLP and Joint Administrator of NMC PLC and NMC Healthcare, Richard Fleming, remarked: "The successful handover of 34 NMC companies of the NMC group to full operation as going concerns under new ownership will be a major landmark for NMC and the Joint Administrators."