NMC Healthcare and Dubai Islamic Bank Joint Statement
United Arab Emirates, 19 March 2024 – NMC Healthcare group (“NMC”), one of the largest integrated private healthcare providers in the United Arab Emirates (“UAE”), and Dubai Islamic Bank (“DIB”), the largest Islamic bank in the UAE, are pleased to announce the amicable resolution and signing of an out of court settlement of all litigation, current and pending, between the parties, and related third parties.
The new and restructured NMC Healthcare and DIB yesterday entered into a global settlement agreement that addresses and amicably resolves the parties’ legacy disputes arising from the old NMC Healthcare’s entry into an administration and restructuring process.
As part of the global settlement, the parties have agreed that DIB will receive cash consideration and Holdco notes in 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 (“ADGM”) restructuring voted for by those creditors in September 2021. DIB will therefore become an economic owner of NMC Holdco SPV LTD (“NMC HoldCo”), NMC’s new holding company which is incorporated in the ADGM, under a deed of company arrangement.
The settlement also provides that all parties will cease and discontinue all current proceedings between them, with no admission of liability made by any of the parties.
NMC Holdco owns the restructured NMC operating companies through its wholly owned subsidiary, NMC Opco LTD (“NMC Opco”), also incorporated in the ADGM. NMC Opco owns and operates 85 healthcare facilities in the UAE and the region.
In a joint statement, spokespersons for NMC and DIB said: “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.”
NMC was represented by Quinn Emanuel Urquhart & Sullivan UK LLP’s London office and Reed Smith LLP’s UAE office. DIB was represented by Eversheds Sutherland LLP’s UAE and UK offices and Habib Al Mulla in the UAE.
Terms of the deal, including the settlement value, are confidential.
