A Syndicate of 10 separate banks, including Emirates NBD Bank PJSC, HSBC Bank Middle East Limited, ICICI Bank and Dubai Islamic Bank in relation to bankruptcy against KBBO group and others.

Summary

We are representing a syndicate of 10 separate banks (the Syndicate), including Emirates NBD Bank PJSC, HSBC Bank Middle East Limited, ICICI Bank and Dubai Islamic Bank, in relation to bankruptcy proceedings before the Abu Dhabi Court against KBBO group, Emirates Hospitals, His Highness Sheikh Saeed al Qubaisi and Khalifa Al Muhairi, for facilities valued at more than AED 7 billion (USD 2 billion).

Details

Our team worked with the appointed trustees in order to prove our client’s claim and to monitor the trustees work and the implementation of the bankruptcy law. This including filing the appeal/grievances and objections against any decisions or wrong implementation of the law before the relevant court in order to protect our clients’ interests. International legal advice to the Syndicate was provided by a leading UK headquartered firm.

KBBO Group and its hospitals unit have now received creditor approval for a debt restructuring plan. This comes two years after NMC Health and its founder Khalifa Al Mukairi filed for bankruptcy in an Abu Dhabi court. KBBO was one of the biggest shareholders in NMC.

We are now waiting for the Abu Dhabi court to ratify the restructuring.

How we added value

This high-profile case, which has been heavily reported on in the media, marks one of the first instances of a large conglomerate using the UAE federal bankruptcy regime to restructure its business and it is a clear indication of the regime’s growing sophistication. Our team played a fundamental role in this due to being the local law firm working with the appointed trustees in order to prove our client’s claim and to supervise the trustees work and the implementation of the bankruptcy law.

This is an excellent example of how our firm supports in the implementation and application of UAE and helps shape the legal and legislative framework and environment in the country.