Abu Dhabi-based hospital operator NMC Healthcare and Dubai Islamic Bank (DIB) have reached an out-of-court settlement on all their disputes, ending “all litigation, current and pending, between the parties, and related third parties,” the company and the lender said in a joint statement (pdf).

Background: The formerly London-listed healthcare operator collapsed in 2020 and was forced into administration by a London Court after a report from US shortseller Muddy Waters claimed that NMC had inflated the value of its assets and that it owed over USD 4 bn in hidden debt. Court filings revealed that NMC owed DIB USD 541 mn.

DIB will now own NMC’s holding company: Under the conditions of the settlement, DIB will become an “economic owner” of NMC Holdco, NMC’s new holding company, which was registered in the Abu Dhabi Global Market in 2022. The lender will gain ownership of the holding company by receiving Holdco notes that were issued to creditors following the company’s management restructuring in 2021.

What are Holdco notes? Holdco instruments were issued to NMC creditors to evidence the debt obligations owed by NMC Holdco to the creditors, NMC said in a statement (pdf). Some USD 2.25 bn in Holdco notes were initially issued by the company.

The other terms and total value of the settlement agreement were not disclosed.

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