While both parties were staying silent, it looks like the private hospital operator is looking for a Plan B.
For the first time the words “voluntary administration” and Healthscope have been mentioned in the same sentence, in public at least.
The embattled private hospital operator, fighting brushfires on several fronts, is rumoured to have brought in restructuring experts KordaMentha to come up with a Plan B in the event the company heads down the voluntary administration route.
Neither Healthscope nor KordaMentha were commenting today, but the Australian Financial Review, citing two people “briefed on the appointment” said the move to seek KordaMentha’s advice was “precautionary” and not a suggestion that voluntary administration was imminent.
KordaMentha is currently administering the collapse of the Whyalla steelworks for similar reasons.
It has been a horror start to the year for Healthscope.
Earlier this week it was issued with breach notices for 11 of its 38 hospitals for failing to pay rent for March. Landlords HealthCo Healthcare happen to be run by David Di Pilla’s HMC Capital.
Mr Di Pilla is allegedly instrumental in trying to assemble a consortium to take over those 11 hospitals.
Related
Healthscope has not breached its rent obligations to its other major landlord, Northwest Healthcare Properties Real Estate Investment Trust, a Canadian outfit which owns 12 Healthscope hospitals.
Northwest is one of the lenders who agreed last week to a three-month reprieve on Healthscope’s restructuring schedule for its $1.6 billion debt, originally due at the end of this month.
On 20 February Healthscope that it will close two of its maternity services – at Darwin Private from 17 April, and at Hobart Private from 20 August – due to declining birth rates and staff shortages.
HSD has reached out to Healthscope for comment on the latest developments but neither had responded by deadline. KordaMentha refused to comment.