Australia’s Healthscope parent entities fall into receivership

The group’s 37 hospitals continue to operate as normal.

Australia’s Healthscope has announced that its parent entities have entered receivership, with McGrathNicol Restructuring appointed by the group’s lenders to oversee an orderly sale of the business.

Meanwhile, McGrathNicol has secured a new $64.4m (A$100m) funding facility from the Commonwealth Bank of Australia. This is in addition to Healthscope’s existing $70.8m (A$110m) cash balance and other significant assets.

The group’s 37 hospitals continue to operate as normal, with no impact on staff, doctors, or patient care.

Healthscope CEO Tino La Spina and the existing management team will remain in place to lead the business and operations.

Healthscope’s Board has appointed partners from KordaMentha as administrators to the same non-operating entities. The receivers will assist the administrators as required to fulfil their statutory role.

A$1 = $0.64