$65 mn syndication received $150 mn commitments; allocations on Nov 16
The earnings before interest, taxes, depreciation and amortisation (EBITDA) generated by the NMC Health (under-administration) for the nine months ending September 30, 2020, has reached $71.7 million (AED263.14 million) against the Business Plan (BP) estimate of negative $16.9 million.
Thus, the actual EBITDA for the said period has exceeded the BP estimate by far, at $88.6 million (AED325.16 million), and was short of the comparable EBITDA at $80.7 million last year, by only $9 million or 11.2 per cent.
Syndication for $65 mn AFF
Meanwhile, the syndication for the $65 million new administrative funding facility (AFF) that opened on October 12 closed on November 1, according to the notes released by the Jt Administrators, has received commitments to the tune of $150 million (AED550.5 million), indicating a multiple oversubscription.
Releasing the data with regard to the syndication process, Administrators said while 53 non-disclosure agreements (NDA’s) were sent, 32 NDA’s were signed and 31 Parties entered the virtual data room (VDR).
They had also stated that the final allocations would be communicated to the interested parties by November 16, and hence hopefully, word must have already reached the parties concerned by now.
Referring to the 2020 financial year performance, the Administrators said NMC Healthcare’s strongest performance so far was in the months of August and September, and the current year is expected to close with revenue at $1.4 billion (AED5.14 billion).
The net revenue for the nine months ending September 30, was $1.055 billion (AED3.87 billion) compared with the business plan estimate of $971.2 million (AED3.56 billion) and $1.15 billion (AED4.22 billion), the company had reported for the same period last year.
The direct labour cost during the period under review was $390.1 million compared with $396 million as per the business plan and $392.6 million for the same nine months in the earlier year.
The almost similar direct labour costs between the current nine months and the nine months in the past year shows that there has not been any substantial labour retrenchment in the company even during the troubled times that the company has been going through.
The claims submission process for the creditors has closed on November 15, 2020. It was on October 24, in preparation for the proposed restructuring, the Joint Administrators had requested the financial creditors to submit claims and provide all relevant supporting information.
A similar process has been launched for trade creditors also. In order to prevent any delays in the proposed restructuring, creditors were strongly encouraged to submit claims by November 15 itself.
DIFC Courts Order
The DIFC Courts more than a week ago issued the order that the Joint Administrators of the companies (under the NMC Health Group) shall be recognised as such within the DIFC, in particular, as duly appointed agents for each of the companies, entitled to exercise all powers conferred on them as agent, including, among other things, to direct the companies in litigation in the DIFC Courts.
It also said that the Joint Administrators shall be entitled to the active assistance of the DIFC Courts in carrying out their functions as administrators, and, in particular, without limitation, the Joint Administrators shall be entitled to apply, or to cause the companies, to apply to the DIFC Courts to stay any proceedings that have been or may in the future be commenced against the companies.