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03 March 2020

UAE-based NMC Health asks lenders for informal standstill

The company hired investment bank Moelis & Co., consultant PwC and the law firm Allen & Overy to advise on a debt restructuring

NMC Health is also strategic to the region’s nascent health-care industry

by Bloomberg

NMC Health, the UAE-based beleaguering hospital operator has asked lenders for an informal standstill on its debt agreements as it tries to safeguard enough cash to keep running.

In a statement, NMC Health said that the hospital operator is currently fully focused on safeguarding operational liquidity.

The informal standstill includes a request to lenders not to exercise any rights and remedies that may arise from any current or future defaults.

Moelis will help NMC Health in discussions with lenders while PwC will assist with liquidity management.

Abu Dhabi’s Mubadala Investment Company, a $229 billion sovereign wealth fund, is considering a potential investment in the UAE’s largest private health-care provider as the FTSE 100 company faces an investigation by the UK’s Financial Conduct Authority over allegations of fraud.

The government is keen to support NMC Health—whose shares have been in free-fall since a December 2019 report by Muddy Waters Capital—to prevent further damage to the emirate’s image as a key regional hub for business.

NMC Health is also strategic to the region’s nascent health-care industry.

Additionally, Moody’s downgraded NMC Health’s debt rating, saying the company no longer has reliable access to funding. The rating agency plans to withdraw the ratings after cutting them to Caa1 from Ba2 because it no longer considers NMC Health’s audited financial statements to be reliable.

RELATED STORIES: PwC Mubadala Investment Company NMC Health Allen & Overy Moelis & Co.





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