NMC Healthcare Group and Dubai Islamic Bank have agreed to an “out-of-court settlement of all litigation,” said a statement issued on Tuesday.
The companies said they agreed to reach an “amicable resolution” that involves current and pending litigations between the two parties and also related to third parties.
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Under the agreement, DIB will receive cash consideration and Holdco notes in the settlement of certain claims. The Holdco notes are instruments that were issued to legacy creditors in exchange for their admitted claims, pursuant to the Abu Dhabi Global Market restructuring voted for by those creditors in September 2021.
The London-listed NMC Healthcare was embroiled in the financial scandals, leading to its collapse and removal of the listing from the bourse.
In March 2022, Abu Dhabi-based NMC Healthcare exited administration in the UAE, allowing a newly formed holding company to chart a fresh path.
The exit of the operating companies from administration followed an agreement on September 1, 2021, when 95 per cent of eligible creditors voted in favour of the restructuring plan of NMC.
Following various legal approvals, 34 NMC operating companies completed a ‘deed of company arrangement’ (DOCA) restructuring process under the Abu Dhabi Global Market (ADGM). The companies left administration on March 25, 2022 and were subsidiaries of a new company, named NMC OpCo Ltd, under a new Board of Directors.
A statement issued by on Tuesday said DIB will therefore become an economic owner of NMC Holdco SPV LTD, NMC’s new holding company, which is incorporated in the ADGM.
NMC Holdco owns the NMC operating companies through its wholly owned subsidiary, NMC Opco Ltd, which is also incorporated in the ADGM. NMC Opco owns and operates 85 healthcare facilities in the UAE and the region.
Both parties agreed that they “will cease and discontinue all current proceedings between them.”
“This amicable settlement and resolution is to both parties’ mutual benefit, enabling NMC to remain focused on providing vital healthcare services to millions of patients across the UAE annually. NMC looks forward to working in close partnership with DIB once more, and DIB looks forward to working with NMC as a supportive and valued stakeholder, creating a win-win situation for both organisations,” said a joint statement issued by the two companies.