Eversheds Sutherland and Habib Al Mulla advised Dubai Islamic Bank (DIB) on a global settlement with NMC Healthcare, with Reed Smith and Quinn Emanuel Urquhart & Sullivan representing the private healthcare provider.
The settlement addresses and resolves the parties’ legacy disputes arising from NMC’s entry into an administration and restructuring process.
The terms of the deal, including the settlement value, are confidential.
As part of the settlement, the parties have agreed that DIB will receive cash consideration and Holdco notes in settlement of certain claims. The Holdco notes are instruments that were issued to legacy creditors in exchange for their admitted claims, pursuant to the Abu Dhabi Global Market (ADGM) restructuring voted for by those creditors in September 2021.
DIB will therefore become an economic owner of NMC Holdco SPV LTD (NMC HoldCo), NMC’s new holding company which is incorporated in the ADGM, under a deed of company arrangement.
As part of the global settlement, the parties have agreed that DIB will receive cash consideration and Holdco notes in settlement of certain claims. The Holdco notes are instruments that were issued to legacy creditors in exchange for their admitted claims, pursuant to the Abu Dhabi Global Market (ADGM) restructuring voted for by those creditors in September 2021.
DIB will therefore become an economic owner of NMC Holdco SPV Ltd (NMC HoldCo), NMC’s new holding company which is incorporated in the ADGM, under a deed of company arrangement.
The settlement also provides that all parties will cease and discontinue all current proceedings between them, with no admission of liability made by any of the parties.
Eversheds Sutherland’s UAE and UK offices and Habib Al Mulla in the UAE represented DIB. The Eversheds team was led by Rebecca Copley, partner and head of disputes for the Middle East, and UK litigation partners James Southworth and Sheena Buddhdev.
Copley said: “We worked very closely with DIB, using our multi-jurisdictional team to its full effect. The case quickly became a ‘one to watch’ for the UAE legal community and internationally.”
NMC was represented by Reed Smith’s UAE office and Quinn Emanuel’s London office. The Reed Smith team was led by finance partner Amir Ahmad.
In a joint statement, spokespersons for DIB and NMC said: “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 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, creating a win-win situation for both organisations.”
