NMC Healthcare and DIB reach out-of-court settlement

NMC Healthcare Group and Dubai Islamic Bank have agreed to an “out-of-court settlement of all litigation,” said a statement issued on Tuesday.

The companies said they agreed to reach an “amicable resolution” that involves current and pending litigations between the two parties and also related to third parties.

NMC Healthcare had crashed after a report from short seller Muddy Waters in December 2019 alleged that the company had inflated the value of its assets and understated its debt. An independent investigation into the company uncovered more than $4.4 billion of previously unreported debt, leading to the company being placed into administration in April 2020.

NMC and DIB on Tuesday said they have reached a global settlement agreement, resolving the disputes that arose from the old NMC Healthcare's entry into administration and restructuring.

According to a joint statement, DIB will receive a cash consideration and Holdco notes to settle certain claims. While the terms of the deal, including the settlement value, were not disclosed,

These notes were issued to legacy creditors as part of the restructuring process that took place in The Abu Dhabi Global Market (ADGM) in September 2021.

By receiving the Holdco notes, DIB will become an economic owner of NMC Holdco, NMC Healthcare’s new holding company, the statement said.

All parties involved have agreed to discontinue any ongoing legal action or proceedings against each other, with no admission of liability.

“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 and DIB representatives said.

“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.”