DUBAI- The core operations of NMC, the largest private healthcare provider in the United Arab Emirates (UAE), exited administration in Abu Dhabi on Friday to form a new company.

NMC, which used to be listed in London, ran into trouble in 2020 after disclosure of more than $4 billion in hidden debt left many United Arab Emirates and overseas lenders with heavy losses.

"Swift process sees 34 NMC companies exit administration to form a new NMC Group," a statement from joint administrators Alvarez & Marsal said.

Lenders led by Abu Dhabi Commercial Bank (ADCB) agreed to exchange their existing debt in the company for "exit instruments" under a new facility.

ADCB said it received 37.5% of transferable "exit instruments" in a $2.25 billion facility issued by a new NMC holding company following completion of a debt restructuring process and a successful exit from administration.

In September NMC said that the future expected value of the new company would be $2.25 billion.

NMC Chief Executive Michael Davis told Reuters the value of the new company will be higher if the company is sold as banks would not want to hold on to the NMC business indefinitely.

"Within the next three years NMC Healthcare will go back on sale - it may be to institutional investors, it can be a strategic investor, it might be a combination of those," he said.

NMC's core businesses in the UAE and Oman employ more than 12,000 and serve more than 5.4 million patients a year through 11 hospitals and 54 community clinics and speciality care centres.

"We are talking about a company that has come back from fraud, that has come back from administration and spent two years putting together processes that will deliver and guide us on good governance," Davis said.

NMC, which was founded by Indian businessman BR Shetty in the mid-1970s, ran into trouble 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.

The UK-registered NMC Healthcare PLC and UAE-registered NMC Healthcare Ltd still remain in administration while restructuring and legal issues related to these entities are resolved, NMC said.

(Reporting by Saeed Azhar Editing by Kirsten Donovan, David Goodman and Jonathan Oatis)