The creditors of UAE’s distressed hospital operator NMC Health have agreed to the restructuring of the group that will require them to trade their debt in return for equity. The administrator of the troubled hospital provider, Alvarez & Marshal (A&M) was able to convince the lenders that a distressed sale was “likely to yield a significantly lower recovery than a restructuring” which helped it gain adequate firm commitments from the creditors of more than $6.4bn for the financial restructuring. The restructuring will help reduce the debt of the group to ~$2.5bn through a process known as Deeds of Company Arrangement (DOCA). A&M will now put into motion a formal voting process. Joint administrator Richard Fleming said, “The resounding level of support from creditors reflects the positive sentiment towards the collective approach we have taken throughout this process to ensure the group optimises value for creditors”.
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