NMC Succumbs to Administration After Giving In to Creditors

  • Judge says ‘something has gone very wrong’ with governance
  • Abu Dhabi bank said NMC had struggled to pay hospital staff
Construction material sit outside the NMC Royal Hospital, operated by NMC Health, in Dubai on March 1.Photographer: Christopher Pike/Bloomberg
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Just two years after its market value soared to more than $10 billion, NMC Health Plc was placed in administration by a London court as the troubled health-care provider succumbed to creditor demands.

NMC, the Middle East’s largest hospital operator, will be run by administrators Alvarez & Marsal, Judge Sebastian Prentis said via videoconference Thursday. It’s a boost for state-owned Abu Dhabi Commercial Bank PJSC, which is owed $963 million. It had pushed for administration in a bid to get management to relinquish control.