NMC and Dubai Islamic Bank Reach Amicable Resolution
NMC Healthcare group (“NMC”), a prominent private healthcare provider in the United Arab Emirates (“UAE”), and Dubai Islamic Bank (“DIB”), one of the largest Islamic banks in the UAE, have announced the successful resolution of all litigation between them, along with related third parties.
In a joint statement released yesterday, NMC and DIB revealed that they have reached a global settlement agreement to resolve legacy disputes stemming from NMC Healthcare’s previous administration and restructuring process. This agreement marks a significant step forward in resolving the issues between the two entities.
As part of the settlement, DIB will receive cash consideration and Holdco notes to settle certain claims. These Holdco notes were issued to legacy creditors as part of the restructuring process in the Abu Dhabi Global Market (“ADGM”) in September 2021. Consequently, DIB will become an economic owner of NMC Holdco SPV LTD (“NMC HoldCo”), the new holding company of NMC, incorporated in the ADGM.
The settlement also entails the cessation of all current proceedings between the parties, with no admission of liability from either side. This resolution paves the way for NMC to focus on delivering essential healthcare services to millions of patients across the UAE, while DIB looks forward to resuming its partnership with NMC as a supportive stakeholder.
NMC Holdco, through its subsidiary NMC Opco LTD, owns and operates 85 healthcare facilities in the UAE and the wider region. Both NMC and DIB expressed their commitment to moving forward collaboratively, creating a mutually beneficial outcome for both organizations.
In a joint statement, spokespersons for NMC and DIB 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.”
In the words of Habib Al Mulla Managing Partner, Amir Alkhaja (pictured right): “We greatly value DIB’s trust in our Firm’s abilities especially when it comes to disputes such as this. Now that this global settlement has been signed, I look forward to seeing both parties prosper in their respective industries for the overall benefit of the UAE Islamic banking and healthcare sectors. Clients such as DIB have seen it all, which is why we pride ourselves on being able to present innovative strategies and solutions and we hope to continue pioneering on that front.”
Ali Dakhlallah (pictured left), Head of Habib Al Mulla’s Banking & Finance Litigation Practice is quoted to say: “As you may have noticed, the second most impressive part of the DIB-NMC Joint Statement was the calibre and number of law firms that were involved on both sides (DIB’s extraordinary in-house team included). This case is a trailblazer just by mere impact alone. The banking and insolvency litigation envelope has been greatly pushed and we expect to see echoes and emulations of this case across the region in the years to come”.
The advisors
DIB was represented by Eversheds Sutherland’s UAE and UK offices and Habib Al Mulla in the UAE.
NMC was represented by Quinn Emanuel Urquhart & Sullivan UK’s London office and Reed Smith’s UAE office.
Terms of the deal, including the settlement value, are confidential.
