Landmark NMC Restructuring in UAE

Dec 4, 2025

Join Richard East, a partner at Quinn Emanuel specializing in insolvency, and Karabeth Ovenden, also a partner with a focus on litigation, as they dive into the monumental restructuring of NMC, the UAE's largest healthcare provider. They uncover how a report from Muddy Waters led to NMC's shocking $6.5 billion debt revelation. Discover the novel strategy of relocating 36 NMC companies into Abu Dhabi's Global Market, navigating legal complexities to protect assets while ensuring vital healthcare services continued during the pandemic.

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ANECDOTE

Sudden Collapse After Short‑Seller Report

NMC was a high‑flying LSE‑listed private hospital group that collapsed after a Muddy Waters report revealed hidden debt.
The company had disclosed ~$2.5bn of debt but actually carried nearer to $6.5bn, sparking creditor seizures across the UAE.

ADVICE

Use Top‑Co Administration To Buy Time

Petitioning for UK administration of the PLC can be an early step to secure a top‑level moratorium and place officeholders in charge.
Use that breathing space to design cross‑border protection for operating subsidiaries before creditor chaos spreads.

INSIGHT

ADGM's Evergreen Common‑Law Advantage

ADGM offered an 'evergreen' common‑law regime that could mirror English developments and allow consolidated filings for multiple companies.
That flexibility and a registrar rule change enabled continuation of insolvent operating companies into ADGM for administration.

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John is joined by Richard East and Karabeth Ovenden, partners in Quinn Emanuel’s London Office. They discuss the unprecedented bankruptcy and restructuring of NMC, the largest healthcare provider in the United Arab Emirates (UAE). Initially listed on the London Stock Exchange and heavily favored by the market, NMC collapsed precipitated by a report by short-seller Muddy Waters raising significant questions about the audited accounts of the company. Ultimately it was revealed that NMC had approximately $6.5 billion in debt, rather than the $2.5 billion that had been disclosed to the market. Over 100 creditors rushed to seize NMC’s assets across the UAE. The absence of a comprehensive UAE bankruptcy framework posed an existential threat to the company, especially because the crisis occurred during the COVID-19 pandemic when NMC facilities were treating a significant portion of the country’s COVID hospitalizations.

To address this crisis, a team of QE insolvency litigators initiated administration proceedings first in the UK for NMC’s parent company. However, this did not protect NMC’s UAE-based operating entities. To protect those assets and preserve continuity of care, the QE team adopted the novel strategy of moving 36 NMC operating companies into the Abu Dhabi Global Market (ADGM), a common-law “free zone” jurisdiction within the UAE. This required a sovereign executive order to release existing asset attachments and allow for insolvency proceedings in the ADGM—an unprecedented step in UAE restructuring history.

The move faced significant jurisdictional and legal resistance across the various Emirates. Recognition of the ADGM orders in onshore courts was difficult, requiring extensive legal argumentation and government coordination. Once inside the ADGM, the companies could proceed with a complex reorganization plan, culminating in a successful arrangement which obtained support from over 90% of the creditors. The team also navigated criminal investigations, litigated against dissenting creditors, and pursued claims against parties potentially complicit in the fraud.

Podcast Link: Law-disrupted.fm
Host: John B. Quinn
Producer: Alexis Hyde
Music and Editing by: Alexander Rossi