KBBO group restructuring approval is a milestone in UAE bankruptcy law regime

KBBO group restructuring approval is a milestone in UAE bankruptcy law regime

UAE - The court approval for Abu Dhabi-based KBBO Group’s restructuring, the largest successful onshore bankruptcy case in the UAE, marks a key milestone for the landmark legislation that will have wider positive implications for the business community, legal experts said.

KBBO Group was one of the biggest shareholders of collapsed firm NMC Health. KBBO’s founder Khalifa bin Butti Al Muhairi filed for bankruptcy through an Abu Dhabi court two years ago after NMC’s collapse. NMC, which was founded by Indian businessman BR Shetty in the mid-1970s, ran into difficulties after short-seller Muddy Waters questioned its financial reporting and doubts emerged over the size of stakes owned by its biggest shareholders. NMC also disclosed more than $4 billion in hidden debt, which led to London-listed NMC Health being placed in administration in April 2020.

The court approval was subsequent to the approval on August 14 2023 from the majority of creditors for the KBBO group and associated entities to be restructured under the UAE Bankruptcy Law, which was introduced in late 2016.

The KBBO Group restructuring includes 29 corporate applicants and two shareholders and will be implemented in order to maximise the return for all of the creditors with Dh7 to Dh12 billion