But the embattled private hospital operator says it is yet to receive any proposals from potential buyers.
Struggling private hospital operator Healthscope is preparing for a possible sale of the business after reaching an agreement with most of its lenders to suspend interest payments while it works to stabilise the company.
The company, which is owned by global asset management firm Brookfield, is also having broader restructure discussions with its key stakeholders.
Among the companies it plans to engage with is David Di Pilla’s HMC Capital, to explore long-term solutions for keeping the company’s hospitals operational. However, Healthscope has stated that it has not yet received a takeover offer from HMC.
Healthscope operates 38 hospitals across the country, including the Northern Beaches Hospital.
According to a statement issued by Healthscope today, the company has entered into short-term forbearance agreements with its senior lenders. This arrangement gives Healthscope until May to find a “long-term solution” for its operations.
“These arrangements provide time and enhanced liquidity for Healthscope to focus on agreeing a longer-term solution for the business with its key stakeholders,” Healthscope said.
“As part of these forbearance arrangements, Healthscope will commence preparations for a potential sale of the business and concurrently engage in broader restructure discussions with its key stakeholders.
“This forbearance provides stability of ongoing operations, and a greater likelihood of a longer-term solution in the best interests of all stakeholders.”
Last week Healthscope was issued with breach notices for 11 of its 38 hospitals for failing to pay full rent for March. Landlords HealthCo Healthcare is associated with David Di Pilla’s HMC Capital.
Mr Di Pilla is allegedly instrumental in trying to assemble a consortium to take over those 11 hospitals.
Healthscope has not ruled this out, with its latest statement indicating it is prepared to talk with Mr Di Pilla’s group.
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“Having achieved these milestones we will also re-engage with the HMC-managed entities and invite HMC to participate in discussions on longer-term solutions that ensure relevant hospitals can sustainably operate,” Healthscope said today.
“HMC and potential partners are also said to be considering an offer for Healthscope. Healthscope has not received any proposal from HMC or any other potential partner.”
Healthscope is the second-largest operator of private hospitals in the country. Brookfield acquired the company in a $4.4 billion takeover in 2019.
As part of the buyout, Brookfield sold 22 Healthscope properties for $2.5 billion before leasing them back.
Healthscope has reportedly appointed restructuring experts at KordaMentha to prepare a contingency plan if it is placed into administration, according to the Australian Financial Review.
However, it reported that “those close to the company, speaking on condition of anonymity given the sensitive nature of the discussions, said it was precautionary and there was no suggestion an administration was near”.