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Monday, August 03, 2020

Sharjah News - Abu Dhabi’s NMC Health ‘close’ to securing 250 million dollars of bank financing

by Century Financial in Century in News

Sharjah News - Abu Dhabi’s NMC Health ‘close’...

Dubai — Abu Dhabi-based NMC Health is set to sign a usd 250 million debt financing deal from UAE banks, according to the financial industry. The terms of the deal have been agreed and the funds would be useful for the hospital operator to meet its medium-term cash flow requirements, including salary payments.

But some bank sources say the amount could be even higher.

If confirmed, the loan program would mean that UAE banks are willing to take their exposures to the cash-rich NMC, which had withheld commitments of 6 billion dollars plus more than 80 institutions, for a longer-term view of their exposures, much of which was kept off the books until recently. (Another COMPANY based in the UNITED Arab Emirates, engineering firm Drake & Scull International, also recently confirmed that it has made significant progress in financial restructuring with lender banks.)

“NMC CEO Michael Davis and Alvarez & Marsal, the NMC administrator, have convinced the lenders that the additional 250 million dollars will be vital,” said one banker. “The underlying NMC business is strong – it showed the ability to survive the COVID-19 crisis and the devastating fraud that was uncovered just before the peak of the pandemic.”

It is not confirmed whether it is just a bank that goes through lending, or whether others are involved. Comes attached with strings

Only companies that have applied for insolvency protection can have access to DIP (debtor-in-ownership) financing, and these can be tapped for reorganisation purposes. “NMC’s financing of USD 250 million is conditional on ADGM (Abu Dhabi Global Market) accepting the company’s filing under its jurisdiction,” said Vijay Valecha, Chief Investment Officer at Century Financial. Salary payments

Meanwhile, informed sources at NMC Health confirm that “timely” payouts are now firmly back on track. In February, as the extent of its financial commitments came to light, NMC delayed salaries by more than two weeks – the first time in the company’s history.

“A considerable amount of work in the last five months and through close cooperation with local banks and insurance companies, NMC completed the July payroll in time and before the start of the Eid Al Adha vacation,” said the official.

“Everyone is fully focused at the moment on maintaining the business and well-being of patients and staff.

Source : Sharjah News 
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