UK High Court appoints joint administrators for NMC Health

The High Court in the United Kingdom placed UAE-based hospital operator NMC Health into administration, Abu Dhabi Commercial Bank (ADCB) said on Thursday.

The joint administrators from turnaround advisory firm Alvarez & Marsal will take immediate control of NMC Health and will work on behalf of all stakeholders, the bank said in statement to Abu Dhabi Securities Exchange.

ADCB’s filing for the appointment of joint administrators received support from a number of key creditors, who are particularly concerned about NMC’s liquidity and that former members of the board and senior management team still retained influential positions despite the disclosure of the suspected fraudulent activities.

The bank noted that appointing an administration aims at assuring the continuity of operations for patients, healthcare workers and other stakeholders. It will also ensure stability and continuity of healthcare services at NMC’s medical facilities.

In addition, administrators are tasked to implement robust governance, conduct a full, transparent investigation into suspected previous irregular financial activity.

ADCB said it is committed to working closely with the joint administrators, other creditors, stakeholders and regulators to ensure investigations into NMC Health are exhaustive.

The bank is committed to extend short-term working capital facilities to the company when the joint administrators commence their work, the statement added.