CASE PROFILE: Sevenhills Healthcare Private Limited

31 May 2018
 
 
Sevenhills Healthcare, a Visakhapatnam, Andhra Pradesh-based hospital operator, was admitted into bankruptcy by the National Company Law Tribunal's (NCLT) Hyderabad bench on 13 March 2018 at the behest of a petition from Axis Bank. Resolution professional Alvarez & Marsal's Abhilash Lal has until 9 September 2018 to put together a creditor-approved resolution plan, although that can be extended by a maximum 90 days, to 8 December 2018, unless there are related litigation that drags out the process. 

As of 5 April, Lal had received claims totaling INR 15.46bn (USD 242m), of which INR 12.96bn (USD 203m) have been verified, including INR 12.63bn (USD 194.06m) from financial creditors (as detailed on page 3). The list of financial creditors shows that Axis bank held about 61% of verified creditor claims as of 5 April, however since late April, JM Financial Asset Reconstruction Co (JMARC) and BofA-Merrill Lynch - or whomever they are fronting for - bought up enough of the debt to control the bankruptcy process, as reported by Debtwire

Sevenhills took on a significant amount of debt beginning in 2006 to fund the construction of its planned 1,500 bed hospital in Mumbai. But in part because of battles with the city government, the company never managed to get the hospital fully operational and thus was unable to service its debt.
 
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