Investing.com-- Brookfield-owned Healthscope, Australia’s second-largest private hospital operator, has initiated preparations for a potential sale after securing temporary relief from its lenders amid financial challenges, local media reports stated on Tuesday.
The company has entered into short-term forbearance arrangements with the majority of its senior lenders, allowing it until May to explore long-term solutions, including a possible sale, to address its $1.6 billion debt, the reports said.
As part of the forbearance agreements, it will begin preparing for a possible sale of the business while also engaging in wider restructuring discussions with key stakeholders, the Australian Financial Review reported citing a company statement.
Healthscope, owned by Brookfield since a $4.4 billion acquisition in 2019, has faced mounting debts exacerbated by rising medical costs and challenges in securing higher reimbursements from health insurers, The Australian reported.
These financial strains have led to missed rent payments and heightened concerns about the company’s viability, The Australian’s report added.
Potential buyers, including HMC Capital, are reportedly considering acquiring Healthscope, though no formal offers have been made, the reports said.
The outcome of these developments will significantly impact Australia’s healthcare landscape, with stakeholders closely monitoring the situation.