(Bloomberg) --
NMC Health Plc's joint administrators have kicked off a plan that could help 34 companies of the scandal-hit hospital operator find their way to exit its protective administration.
Under the deeds of company arrangement proposals, which Abu Dhabi-based NMC said has the support of its creditors, the unsecured debt of some of the firms will be exchanged for equity-like interests in a new group, according to a statement on Wednesday.
While shares of the companies and “substantially all” the assets will be transferred to the new group, NMC Healthcare LTD will remain in administration “to pursue potential litigation claims” against itself and other firms.
Creditors are scheduled to vote on the proposed plan on Sept. 1. Once cleared by the courts in the Abu Dhabi Global Market, the financial center of the United Arab Emirates capital, the transfer of assets and shares is expected to take between three and five months.
NMC, which was once listed on the London Stock Exchange, collapsed in 2019, revealing that it had more than $4 billion of undisclosed borrowings. In April, NMC completed the sale of Eugin Group, its lucrative fertility business, to German health-care company Fresenius SE for $525 million.
The company is looking to sell UK-based Aspen Healthcare and a joint venture in Saudi Arabia, which are considered non-core to the business, said joint administrator Benjamin Cairns on a media call. Talks are ongoing with potential buyers, he said, without sharing a timeline for the sale.
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The hospital operator had earnings before interest expense, taxes and amortization of $103.9 million in the first half, 50% more than budgeted in its business plan. Gross revenue for NMC's UAE and Oman business reached $611 million, or 10% higher than anticipated.
“Over the past 18 months we worked with our stakeholders and partners to stabilize the group's financial position and improved operations, saving over $2 billion of value in the process,” NMC Healthcare Chief Executive Officer Michael Davis said in a statement.
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