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Dubai: Emirates Hospitals Group (EHG), a member of the KBBO Group of companies (KBBO), secured a new money financing of AED 150 million from Fidera. Fidera, a significant financial creditor of EHG, is an independent investment fund specialized in process-intensive situations.
EHG is a major health services provider in the UAE with a portfolio that includes 2 hospitals, 3 day-surgery centers, 18 clinics, 3 rehab centers, 11 pharmacies, and 1850 employees. On 27-July-2021, KBBO filed for Chapter 4 protections under the Decree Law No 9 of 2016 on Bankruptcy for the purpose of restructuring its debt. The new money financing was sanctioned by the Abu Dhabi Court to allow the EHG group of companies to trade and operate as going-concerns. Under the terms of new money financing, approved financial creditors will also be able to participate in the new facility through syndication within a fixed period.
Michael Fakih, the CEO of EHG, said, "The successful mobilization of new money will allow for sustainable operations in the long term, provide security to our loyal staff and attract new talents towards excellence and service to the public."
Salem Ballama, Chairman of the Abu Dhabi Court appointed KBBO Trustee Panel, - which also comprises David Stark, Partner and Head of Deloitte Middle East Turnaround and Restructuring and Paul Leggett a Deloitte Turnaround and Restructuring Partner - stated, "This rescue package is a major achievement realized under the auspices of the 2016 Bankruptcy Law, and demonstrated the ability of the Judiciary to efficiently carry out such a complex transaction and contribute to increase business confidence in the UAE. The Trustee Panel would like to thank all creditors that supported the new money application, and also thank the Abu Dhabi Court for carefully balancing the preservation of creditor rights and the stability of the healthcare sector in the UAE.”
This is a very significant milestone in the restructuring of EHG, enabling a stable platform from which EHG’s management and the Trustees can formulate and execute a strong business plan that maximises recovery for creditors while also saving and creating employment opportunities.
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