Leisure & Hospitality NMC shareholder gets court nod to restructure By Reuters September 17, 2023 REUTERS/Satish Kumar KBBO's founder Khalifa Bin Butti Al Muhairi filed for bankruptcy through an Abu Dhabi court two years ago after NMC's collapse A plan to restructure Abu Dhabi investment firm KBBO Group and its hospital unit received court approval on Friday following months of negotiations, said Deloitte, which is acting as trustee of the group. KBBO Group was one of the biggest shareholders of collapsed firm NMC Health. KBBO’s founder Khalifa Bin Butti Al Muhairi filed for bankruptcy through an Abu Dhabi court two years ago after NMC’s collapse. He was also vice-chairman of NMC. The majority of creditors approved the restructuring plan for KBBO Group and its associated entities on August 14, Deloitte said. “The restructuring plan will be implemented to maximise the return for all of the creditors with AED7 billion ($1.91 billion) to AED12 billion of claims, including multiple complex cross guarantee positions,” the statement said. The Emirates Hospital Group restructuring plan includes raising AED150 million in new money, the recapitalisation of its balance sheet, along with an option to implement an asset disposal/rationalisation plan, the statement added. NMC, which was founded by Indian businessman BR Shetty in the mid-1970s, ran into difficulties after short-seller Muddy Waters questioned its financial reporting and doubts emerged over the size of stakes owned by its biggest shareholders. NMC also disclosed more than $4 billion in hidden debt, which led to London-listed NMC Health being placed in administration in April 2020.
