Eversheds Sutherland advises Dubai Islamic Bank on its global settlement with NMC Healthcare group

Eversheds Sutherland has advised Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE, on the resolution of various disputes with the NMC Healthcare group (NMC), one of the largest integrated private healthcare providers in the UAE.

The parties have entered into a global settlement agreement which resolves their legacy disputes arising from NMC’s entry into an administration and restructuring process. This settlement includes all litigation, current and pending, between the parties, and also with related third parties.

As part of the global settlement, the parties have agreed that DIB will receive cash consideration and Holdco notes in settlement of certain claims. The Holdco notes are instruments that were issued to legacy creditors in exchange for their admitted claims, pursuant to the Abu Dhabi Global Market (ADGM) restructuring voted for by those creditors in September 2021.

DIB will therefore become an economic owner of NMC Holdco SPV LTD (NMC HoldCo), NMC’s new holding company which is incorporated in the ADGM, under a deed of company arrangement.

The settlement also provides that all parties will cease and discontinue all current proceedings between them, with no admission of liability made by any of the parties.

Eversheds Sutherland’s UAE and UK offices and Habib Al Mulla in the UAE represented DIB. Eversheds Sutherland’s multi-jurisdictional cross-border team was led by Rebecca Copley, Partner and head of Disputes for the Middle East, and fellow UK Litigation Partners James Southworth and Sheena Buddhdev alongside a large team of partners and Associates across the Middle East, Europe and Asia.

In a joint statement, spokespersons for NMC and DIB said, “This amicable settlement and resolution is to both parties’ mutual benefit, enabling NMC to remain focused on providing vital healthcare services to millions of patients across the UAE annually. NMC looks forward to working in close partnership with DIB once more, and DIB looks forward to working with NMC as a supportive and valued stakeholder, creating a win-win situation for both organisations.

Rebecca Copley, Eversheds Sutherland, commented, “We worked very closely with DIB, using our multi-jurisdictional team to its full effect. The case quickly became a “one to watch” for the UAE legal community and internationally”.

An officer of DIB, commented, “Eversheds Sutherland has an excellent combination of international law firm expertise and punching power, and an understanding of local law nuances and local practices. The service is first rate, and the team are a pleasure to deal with”.

Terms of the deal, including the settlement value, are confidential.