Seven Hills Healthcare founded in 1982 is reeling under a debt burden of $185 million. The hospital has branches in both Mumbai as well as Vizag. The 2000 bed strong hospital has opened to debt closure. JP Morgan is expressing interest to close the debt and move to stabilize. It would bring about a change in business strategy and profitability and then sell it.
The consortium of names that have lent money are being led by Axis bank. They are seeking repayment of dues. JP Morgan, the biggest name in US banking may end up shelling over $300 million. Another competitor trying to capitalize on the debt crisis is AION Capital. AION Capital is a joint venture of Apollo and ICICI.
Healthcare is an attractive proposition for finance biggies. In every hospital, patients are willing to pay for better. Better healthcare facilities and practitioners are seen as genuine spend. Speciality and Super-speciality hospital demands are burgeoning and there is not enough. While fiance players are interested in venturing, things are not always going well. There have been mergers and acquisitions in the past that have not achieved fruit. The process is slow and the State Government intervention troublesome.
What remains to be seen is the future of the hospital. The ultimate company that shall hold the helm in troubled times. Seven Hills is an old and familiar name in this town.
Source – TOI