Hospital operator NMC Health is looking to raise up to $250 million in debt while it prepares for insolvency proceedings in the United Arab Emirates and has picked Perella Weinberg Partners to advise it on the process, sources said.
The company, run by administrators Alvarez & Marsal, has also tasked Perella to advise it on the sale of UK-based Aspen Healthcare, a company it acquired in 2018, the two sources familiar with the matter said.
Its UAE entity is considering to apply for insolvency under the jurisdiction of Abu Dhabi Global Markets (ADGM), sources have previously told Reuters, to obtain protection from the court from any enforcement from creditors, similar to Chapter 11 in the United States.
The $250 million loan, referred to as debtor-in-possession financing, would help sustain operations and cover advisers’ fees while the company navigates insolvency proceedings, the sources said.
The financing is contingent on ADGM accepting NMC’s filing under its jurisdiction, one of them added.
NMC Health’s administrators declined to comment and Perella did not immediately respond to a request for comment.
The sources said the financing would likely be provided by UAE banks that have large exposure to the company, as supporting the business would improve their chances of recovering part of its outstanding debt.
Some NMC Health existing bank debt was being offered to distressed debt buyers at 10-20 cents on the dollar this week, one of the sources said, while its US dollar-denominated bonds due in 2023 were offered around 15 cents on the dollar, according to Refinitiv data.
NMC Health is the largest private healthcare provider in the UAE, operating more than 200 facilities including hospitals, clinics and pharmacies.
Perella is also advising NMC on the sale of its international fertility business, sources told Reuters, estimating the potential deal at over $500 million.