Abu Dhabi’s KBBO said to get creditor approval for debt revamp

Abu Dhabi’s KBBO said to get creditor approval for debt revamp

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KBBO Group and its hospitals unit have received creditor approval for a debt restructuring plan, two years after the Abu Dhabi-based investment firm’s founder filed for bankruptcy, reported Bloomberg News.

Creditors approved Emirates Hospitals Group’s plan earlier this week, according to people familiar with the matter and a presentation seen by Bloomberg News. The deal allows Emirates Hospitals to stave off liquidation and paves the way for a sale of the company by 2025.

KBBO also received the go-ahead this month, the people said, asking not to be named because the information isn’t public. The Abu Dhabi court has to now ratify both restructurings.

KBBO’s debt pile

The firm, whose creditors include Mashreqbank and Dubai Islamic Bank, has a debt pile of more than $2bn, Bloomberg News has previously reported. The case marks one of the first instances of a large conglomerate using the United Arab Emirates federal bankruptcy regime to restructure, indicating domestic insolvency laws are maturing.

Rothschild & Co advised creditors and Deloitte acted as the court-appointed trustee, running the businesses and process.

KBBO was one of the biggest shareholders in NMC Health, and its founder Khalifa Bin Butti Omair Al Muhairi was the vice-chairman of the London-listed firm. Al