Healthscope enters receivership with $1.6b of debt, forcing lenders to withdraw support and CBA to inject $100m lifeline
The lenders behind Healthscope, which runs 37 hospitals across Australia, have opted to call in McGrathNicol Restructuring to find a buyer.
Healthscope was purchased by Canadian asset management firm Brookfield in 2019, however, it handed control of the health company to the lenders earlier this month.
This syndicate of hedge funds and banks voted on Monday to put the company into receivership.
All the hospitals will remain open and operate as usual with no impact to the staff, doctors or patients, Healthscope said.
It has received a $100 million lifeline from Commonwealth Bank of Australia, which comes in addition to its current cash balance of $110m and 'substantial additional asset backing across the group', according to Healthscope.
Westpac has also agreed to provide the receivers with capital to facilitate the sale.
The company's CEO Tino La Spina told reporters he is confident there will be a buyer to take over the business.
'I think we're confident that there is interest in taking the Healthscope business as a whole. We have 10 non-binding indicative offers,' Mr La Spina said.
'Some are for the whole (business) and others potentially could include the whole (business) under certain circumstances. That is the focus.'
Health Minister Mark Butler stressed that while the staff and patients were assured the hospitals will continue to operate, 'this will still be difficult for the hospital's employees and their patients'.
'As Healthscope have today stated, if you have a planned procedure in one of their hospitals, it will go ahead,' Mr Butler said.
He also noted the government had met with KordaMentha, Healthscope's administrator, and the receiver and expects the hospitals to 'remain a critical part of our healthcare system'.
'The government does not want any of these important assets to be put in jeopardy to satisfy international investors,' Mr Butler said.
However, Labor will not bail out the embattled healthcare group.
'We remain steadfast in our view that an orderly sales process that maintains the integrity of the entire hospital group will provide the best outcome for patients, staff, landlords and lenders,' Mr Butler said.
Healthscope owns 13 hospitals each in Victoria and NSW, alongside five in Queensland and four in South Australia and about 19,000 staff across the nation.
The company came under recently after a two-year old boy died at its private-public Northern Beaches Hospital after a misdiagnosis meant he was classified as a low-priority patient.
It led to an inquiry where the NSW government banned public-private hospital partnerships.
Local state member Jacqui Scruby said the receivership was an opportunity for the NSW government to purchase the hospital.
'It is now crunch time. With hedge fund backers pushing for Healthscope's' assets to be sold, the NSW Government must seize this opportunity to buy not just the public beds, but the entire Northern Beaches Hospital,' Ms Scruby said in a statement.
'Northern Beaches residents deserve a hospital with enough beds and services to meet the needs of our growing community, now and into the future.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Perth Now
2 hours ago
- Perth Now
Air Canada workers defy return order, strike continues
Air Canada flight attendants say they will remain on strike despite a government-backed labour board's order to return to work, calling the order unconstitutional. The Canadian Union of Public Employees said in a statement that members would remain on strike and invited Air Canada back to the table to 'negotiate a fair deal'. The airline said it would delay plans to restart operations from Sunday until Monday evening. On Saturday, the Canadian government under Prime Minister Mark Carney moved to end a strike by more than 10,000 flight attendants at the country's largest carrier by asking the Canada Industrial Relations Board to order binding arbitration. The CIRB issued the order, which Air Canada had sought, and unionised flight attendants opposed. The Canada Labour Code gives the government the power to ask the CIRB to impose binding arbitration in the interest of protecting the economy. The government, under former prime minister Justin Trudeau, intervened last year to head off rail and dock strikes that threatened to cripple the economy but it is unusual for a union to defy a CIRB order. It was not immediately clear what options the government has if the union continues its strike. Air Canada had said it planned to resume flights on Sunday evening, following the expected end of the strike that caused the suspension of about 700 daily flights on Saturday, stranding more than 100,000 passengers. Air Canada flight attendants walked off the job on Saturday for the first time since 1985, after months of negotiations over a new contract. The union called a decision by the CIRB chair Maryse Tremblay to not recuse herself from handling the case a 'staggering conflict of interest,' since she had worked as a senior counsel for Air Canada in the past. According to Tremblay's LinkedIn profile, she served as Air Canada's counsel from 1998 to 2004. Air Canada, the CIRB and a Canadian government spokesperson were not immediately available for comment. Other unions joined the flight attendants' picket line in solidarity in Toronto on Sunday. 'They are in support here today because they are seeing our rights being eroded,' said Natasha Stea, an Air Canada flight attendant and local union president. Air Canada had started cancelling flights on Thursday in anticipation of the stoppage. Travellers at Toronto Pearson International Airport said they were confused about whether their flights would resume or Air Canada would make alternative arrangements. 'We are kind of left to figure it out for ourselves and fend for ourselves with no recourse or options provided by Air Canada at this time,' Elizabeth Fourney of Vancouver said. The most contentious issue has been the union's demand for compensation for time spent on the ground between flights and when helping passengers board. Attendants are largely paid only when their plane is moving. CUPE had pushed for a negotiated solution, saying binding arbitration would take pressure off the airline. Air Canada said on Sunday that the CIRB had ordered the terms of the collective agreement between the union and the airline that expired on March 31 be extended until a new agreement can be reached.
West Australian
2 hours ago
- West Australian
Air Canada flight attendants reject government return order, prolong strike disrupting thousand of flights
Air Canada flight attendants say they will remain on strike despite a government-backed labour board's order to return to work, calling the order unconstitutional. The Canadian Union of Public Employees said in a statement that members would remain on strike and invited Air Canada back to the table to 'negotiate a fair deal'. The airline said it would delay plans to restart operations from Sunday until Monday evening. On Saturday, the Canadian government under Prime Minister Mark Carney moved to end a strike by more than 10,000 flight attendants at the country's largest carrier by asking the Canada Industrial Relations Board to order binding arbitration. The CIRB issued the order, which Air Canada had sought, and unionised flight attendants opposed. The Canada Labour Code gives the government the power to ask the CIRB to impose binding arbitration in the interest of protecting the economy. The government, under former prime minister Justin Trudeau, intervened last year to head off rail and dock strikes that threatened to cripple the economy but it is unusual for a union to defy a CIRB order. It was not immediately clear what options the government has if the union continues its strike. Air Canada had said it planned to resume flights on Sunday evening, following the expected end of the strike that caused the suspension of about 700 daily flights on Saturday, stranding more than 100,000 passengers. Air Canada flight attendants walked off the job on Saturday for the first time since 1985, after months of negotiations over a new contract. The union called a decision by the CIRB chair Maryse Tremblay to not recuse herself from handling the case a 'staggering conflict of interest,' since she had worked as a senior counsel for Air Canada in the past. According to Tremblay's LinkedIn profile, she served as Air Canada's counsel from 1998 to 2004. Air Canada, the CIRB and a Canadian government spokesperson were not immediately available for comment. Other unions joined the flight attendants' picket line in solidarity in Toronto on Sunday. 'They are in support here today because they are seeing our rights being eroded,' said Natasha Stea, an Air Canada flight attendant and local union president. Air Canada had started cancelling flights on Thursday in anticipation of the stoppage. Travellers at Toronto Pearson International Airport said they were confused about whether their flights would resume or Air Canada would make alternative arrangements. 'We are kind of left to figure it out for ourselves and fend for ourselves with no recourse or options provided by Air Canada at this time,' Elizabeth Fourney of Vancouver said. The most contentious issue has been the union's demand for compensation for time spent on the ground between flights and when helping passengers board. Attendants are largely paid only when their plane is moving. CUPE had pushed for a negotiated solution, saying binding arbitration would take pressure off the airline. Air Canada said on Sunday that the CIRB had ordered the terms of the collective agreement between the union and the airline that expired on March 31 be extended until a new agreement can be reached.
The Advertiser
7 hours ago
- The Advertiser
Air Canada delays restart plan, strike to continue
Air Canada flight attendants say they will remain on strike despite a government-backed labour board's order to return to work, calling the order unconstitutional. The Canadian Union of Public Employees said in a statement that members would remain on strike and invited Air Canada back to the table to "negotiate a fair deal". The airline said it would delay plans to restart operations from Sunday until Monday evening. On Saturday, the Canadian government under Prime Minister Mark Carney moved to end a strike by more than 10,000 flight attendants at the country's largest carrier by asking the Canada Industrial Relations Board to order binding arbitration. The CIRB issued the order, which Air Canada had sought, and unionised flight attendants opposed. The Canada Labour Code gives the government the power to ask the CIRB to impose binding arbitration in the interest of protecting the economy. The government, under former prime minister Justin Trudeau, intervened last year to head off rail and dock strikes that threatened to cripple the economy but it is unusual for a union to defy a CIRB order. It was not immediately clear what options the government has if the union continues its strike. Air Canada had said it planned to resume flights on Sunday evening, following the expected end of the strike that caused the suspension of about 700 daily flights on Saturday, stranding more than 100,000 passengers. Air Canada flight attendants walked off the job on Saturday for the first time since 1985, after months of negotiations over a new contract. The union called a decision by the CIRB chair Maryse Tremblay to not recuse herself from handling the case a "staggering conflict of interest," since she had worked as a senior counsel for Air Canada in the past. According to Tremblay's LinkedIn profile, she served as Air Canada's counsel from 1998 to 2004. Air Canada, the CIRB and a Canadian government spokesperson were not immediately available for comment. Other unions joined the flight attendants' picket line in solidarity in Toronto on Sunday. "They are in support here today because they are seeing our rights being eroded," said Natasha Stea, an Air Canada flight attendant and local union president. Air Canada had started cancelling flights on Thursday in anticipation of the stoppage. Travellers at Toronto Pearson International Airport said they were confused about whether their flights would resume or Air Canada would make alternative arrangements. "We are kind of left to figure it out for ourselves and fend for ourselves with no recourse or options provided by Air Canada at this time," Elizabeth Fourney of Vancouver said. The most contentious issue has been the union's demand for compensation for time spent on the ground between flights and when helping passengers board. Attendants are largely paid only when their plane is moving. CUPE had pushed for a negotiated solution, saying binding arbitration would take pressure off the airline. Air Canada said on Sunday that the CIRB had ordered the terms of the collective agreement between the union and the airline that expired on March 31 be extended until a new agreement can be reached. Air Canada flight attendants say they will remain on strike despite a government-backed labour board's order to return to work, calling the order unconstitutional. The Canadian Union of Public Employees said in a statement that members would remain on strike and invited Air Canada back to the table to "negotiate a fair deal". The airline said it would delay plans to restart operations from Sunday until Monday evening. On Saturday, the Canadian government under Prime Minister Mark Carney moved to end a strike by more than 10,000 flight attendants at the country's largest carrier by asking the Canada Industrial Relations Board to order binding arbitration. The CIRB issued the order, which Air Canada had sought, and unionised flight attendants opposed. The Canada Labour Code gives the government the power to ask the CIRB to impose binding arbitration in the interest of protecting the economy. The government, under former prime minister Justin Trudeau, intervened last year to head off rail and dock strikes that threatened to cripple the economy but it is unusual for a union to defy a CIRB order. It was not immediately clear what options the government has if the union continues its strike. Air Canada had said it planned to resume flights on Sunday evening, following the expected end of the strike that caused the suspension of about 700 daily flights on Saturday, stranding more than 100,000 passengers. Air Canada flight attendants walked off the job on Saturday for the first time since 1985, after months of negotiations over a new contract. The union called a decision by the CIRB chair Maryse Tremblay to not recuse herself from handling the case a "staggering conflict of interest," since she had worked as a senior counsel for Air Canada in the past. According to Tremblay's LinkedIn profile, she served as Air Canada's counsel from 1998 to 2004. Air Canada, the CIRB and a Canadian government spokesperson were not immediately available for comment. Other unions joined the flight attendants' picket line in solidarity in Toronto on Sunday. "They are in support here today because they are seeing our rights being eroded," said Natasha Stea, an Air Canada flight attendant and local union president. Air Canada had started cancelling flights on Thursday in anticipation of the stoppage. Travellers at Toronto Pearson International Airport said they were confused about whether their flights would resume or Air Canada would make alternative arrangements. "We are kind of left to figure it out for ourselves and fend for ourselves with no recourse or options provided by Air Canada at this time," Elizabeth Fourney of Vancouver said. The most contentious issue has been the union's demand for compensation for time spent on the ground between flights and when helping passengers board. Attendants are largely paid only when their plane is moving. CUPE had pushed for a negotiated solution, saying binding arbitration would take pressure off the airline. Air Canada said on Sunday that the CIRB had ordered the terms of the collective agreement between the union and the airline that expired on March 31 be extended until a new agreement can be reached. Air Canada flight attendants say they will remain on strike despite a government-backed labour board's order to return to work, calling the order unconstitutional. The Canadian Union of Public Employees said in a statement that members would remain on strike and invited Air Canada back to the table to "negotiate a fair deal". The airline said it would delay plans to restart operations from Sunday until Monday evening. On Saturday, the Canadian government under Prime Minister Mark Carney moved to end a strike by more than 10,000 flight attendants at the country's largest carrier by asking the Canada Industrial Relations Board to order binding arbitration. The CIRB issued the order, which Air Canada had sought, and unionised flight attendants opposed. The Canada Labour Code gives the government the power to ask the CIRB to impose binding arbitration in the interest of protecting the economy. The government, under former prime minister Justin Trudeau, intervened last year to head off rail and dock strikes that threatened to cripple the economy but it is unusual for a union to defy a CIRB order. It was not immediately clear what options the government has if the union continues its strike. Air Canada had said it planned to resume flights on Sunday evening, following the expected end of the strike that caused the suspension of about 700 daily flights on Saturday, stranding more than 100,000 passengers. Air Canada flight attendants walked off the job on Saturday for the first time since 1985, after months of negotiations over a new contract. The union called a decision by the CIRB chair Maryse Tremblay to not recuse herself from handling the case a "staggering conflict of interest," since she had worked as a senior counsel for Air Canada in the past. According to Tremblay's LinkedIn profile, she served as Air Canada's counsel from 1998 to 2004. Air Canada, the CIRB and a Canadian government spokesperson were not immediately available for comment. Other unions joined the flight attendants' picket line in solidarity in Toronto on Sunday. "They are in support here today because they are seeing our rights being eroded," said Natasha Stea, an Air Canada flight attendant and local union president. Air Canada had started cancelling flights on Thursday in anticipation of the stoppage. Travellers at Toronto Pearson International Airport said they were confused about whether their flights would resume or Air Canada would make alternative arrangements. "We are kind of left to figure it out for ourselves and fend for ourselves with no recourse or options provided by Air Canada at this time," Elizabeth Fourney of Vancouver said. The most contentious issue has been the union's demand for compensation for time spent on the ground between flights and when helping passengers board. Attendants are largely paid only when their plane is moving. CUPE had pushed for a negotiated solution, saying binding arbitration would take pressure off the airline. Air Canada said on Sunday that the CIRB had ordered the terms of the collective agreement between the union and the airline that expired on March 31 be extended until a new agreement can be reached. Air Canada flight attendants say they will remain on strike despite a government-backed labour board's order to return to work, calling the order unconstitutional. The Canadian Union of Public Employees said in a statement that members would remain on strike and invited Air Canada back to the table to "negotiate a fair deal". The airline said it would delay plans to restart operations from Sunday until Monday evening. On Saturday, the Canadian government under Prime Minister Mark Carney moved to end a strike by more than 10,000 flight attendants at the country's largest carrier by asking the Canada Industrial Relations Board to order binding arbitration. The CIRB issued the order, which Air Canada had sought, and unionised flight attendants opposed. The Canada Labour Code gives the government the power to ask the CIRB to impose binding arbitration in the interest of protecting the economy. The government, under former prime minister Justin Trudeau, intervened last year to head off rail and dock strikes that threatened to cripple the economy but it is unusual for a union to defy a CIRB order. It was not immediately clear what options the government has if the union continues its strike. Air Canada had said it planned to resume flights on Sunday evening, following the expected end of the strike that caused the suspension of about 700 daily flights on Saturday, stranding more than 100,000 passengers. Air Canada flight attendants walked off the job on Saturday for the first time since 1985, after months of negotiations over a new contract. The union called a decision by the CIRB chair Maryse Tremblay to not recuse herself from handling the case a "staggering conflict of interest," since she had worked as a senior counsel for Air Canada in the past. According to Tremblay's LinkedIn profile, she served as Air Canada's counsel from 1998 to 2004. Air Canada, the CIRB and a Canadian government spokesperson were not immediately available for comment. Other unions joined the flight attendants' picket line in solidarity in Toronto on Sunday. "They are in support here today because they are seeing our rights being eroded," said Natasha Stea, an Air Canada flight attendant and local union president. Air Canada had started cancelling flights on Thursday in anticipation of the stoppage. Travellers at Toronto Pearson International Airport said they were confused about whether their flights would resume or Air Canada would make alternative arrangements. "We are kind of left to figure it out for ourselves and fend for ourselves with no recourse or options provided by Air Canada at this time," Elizabeth Fourney of Vancouver said. The most contentious issue has been the union's demand for compensation for time spent on the ground between flights and when helping passengers board. Attendants are largely paid only when their plane is moving. CUPE had pushed for a negotiated solution, saying binding arbitration would take pressure off the airline. Air Canada said on Sunday that the CIRB had ordered the terms of the collective agreement between the union and the airline that expired on March 31 be extended until a new agreement can be reached.
