NMC Healthcare Ltd, which went into administration in 2020 following allegations of a massive accounting fraud, has reportedly received creditors’ approval for the proposed deeds of company arrangement (DOCA) restructuring process. This will allow 34 NMC group companies to exit administration and continue to operate the core business of the NMC group.
And once confirmed by the Abu Dhabi Global Market (ADGM) courts, it is anticipated that implementation of the DOCA shall take between 3 and 5 months, CM Structured Finance (1) Ltd has announced, citing an announcement by NMC on September 1.
In 2020, NMC was accused of undisclosed debts of between USD 4 billion and USD 5 billion, including some USD100 million to Mauritian banks, particularly SBM (Mauritius) Ltd of around Rs3.5 billion.
The DOCA’s approval means that NMC’s creditors have voted for an exit from the administration process through a restructuring of the business.
In a document to the Stock Exchange of Mauritius, CM Structured Finance stared that such restructuring of NMC’s business shall result in a “haircut” on the value of NMC’s debts, and creditors receiving certain exit instruments from NMC.
Upon receipt of the said exit instruments, CM Structured Finance intends to redeem the notes and offer noteholders a capital instrument, which shall reflect the economic rights associated with NMC’s exit instruments.