UAE’s NMC Health files Chapter 15 case to halt shareholder lawsuit

By Caroline Salls

Pittsburgh, June 1 – NMC Health plc made a Chapter 15 bankruptcy filing on May 28 in the U.S. Bankruptcy Court for the District of Delaware to gain U.S. recognition of its U.K. administration proceedings pending before the High Court of Justice, Business and Property Courts of England and Wales, Insolvency and Companies List.

In its motion for recognition of the U.K. proceedings, NMC Health said it is seeking a stay from the U.S. court of collection and enforcement actions to enable it to evaluate how to maximize the value of assets owned in the United States, including medical practices.

In addition, the company said as its foreign representatives’ investigation proceeds, they may need to conduct discovery in the United States.

In the meantime, the foreign representatives said they need to pause a lawsuit some of NMC Health’s shareholders filed against the company in the United States prior to the representatives’ appointment.

NMC Health said its interim accounts prepared in November 2019 report total debt for the company of $1.873 billion.

DLA Piper LLP (US) is representing NMC Health in its Chapter 15 proceedings.

NMC Health operates one of the largest wholesale distribution businesses in the United Arab Emirates, including consumer goods, pharmaceuticals and scientific equipment. The Chapter 15 case number is 20-11385.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.