Milbank Advises on US$7 Billion NMC Healthcare Financial Restructuring

Milbank LLP advised Abu Dhabi Commercial Bank PJSC (“ADCB”) and certain other financial institutions on the financial restructuring of the NMC Healthcare Group (“NMC”), the largest private healthcare provider in the United Arab Emirates. This restructuring represents a groundbreaking financial restructuring of NMC’s US$7 billion of debt and a separation of the operating group of NMC from its former holding company in a market-first exit from administration pursuant to the deed of company arrangement under the Abu Dhabi Global Markets (“ADGM”) insolvency regulations.

Milbank represented ADCB, Sculptor Capital Management and certain other financial institutions (the “Opco Financiers”) on the NMC operating group’s exit from the ADGM administration and the implementation of a market-leading US$350 million (approximately AED 1.29 billion) new money facilities provided by the Opco Financiers to enable NMC to exit from administration, refinance the administration funding facilities made available in early 2020 and carry out business in the ordinary course following the restructuring of US$7 billion of pre-administration debt. This pioneering and complex financial restructuring involves working across several legal systems (including Abu Dhabi law, UAE law, English and New York law), while ensuring the exit facilities and administration financings are refinanced accordingly.

Milbank also acted for ADCB (in its capacity as global facility agent) in connection with the refinancing of the administration funding facilities made available to the NMC to finance the administration steps being taken by the administrators.

The international Milbank team advising on this complex and market-leading restructuring was led by London partners Karen McMaster (Financial Restructuring), Tom Canning (Litigation) and John Dewar (Finance). The team also included Munib Hussain and Bader Thabti (Finance), Nicholas Crossin, Navine Hussain, Matthew Fonti (Financial Restructuring) and Peter Edworthy (Litigation), with support from trainees Eugenia Lau and Isabella Nappert-Rosales (Finance).

“We are proud of the role Milbank has played in advising the Opco Financiers on this complex and landmark restructuring within the United Arab Emirates,” said Karen McMaster, Financial Restructuring partner. “This restructuring illustrates our cross-practice expertise and experience in advising on some of the most complex matters in the Middle East.”