A&O Shearman has advised the creditors’ committee to Emirates Hospitals Group (EHG) on its AED 3.5 billion debt restructuring, marking the third large-scale restructuring under the UAE’s bankruptcy law.
The restructuring involves a significant reduction of debt, a new tiered capital structure, the establishment of a new governance structure with a board comprising domestic and international healthcare professionals, and the provision of additional financing to meet EHG’s ongoing funding requirements.
It received the approval of EHG’s creditors last summer and was overseen by the Abu Dhabi Court of First Instance and the newly formed Bankruptcy Department. EHG first entered bankruptcy proceedings in July 2021.
“As with any complex, multi-stakeholder restructuring, there have been many challenges along the way,” said restructuring partner Adam Banks, who led the A&O Shearman team from Dubai. “The fact that it has been possible to address these challenges in a robust and sophisticated manner is testament to both the stakeholders involved and the UAE’s progressive bankruptcy and restructuring framework.”
It is the third large-scale restructuring implemented under the UAE’s bankruptcy law, which came into force on May 1, establishing, among other things, a new insolvency court and a more structured process for companies facing financial distress.
A&O Shearman played a leading role in each of the restructurings in the courts of three Emirates, Abu Dhabi, Dubai, and Ras Al Khaimah. The firm advised Drake & Scull on its restructuring, with support from Hadef & Partners, and RAK Gas on the restructuring of JBF RAK.
