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Nishkala Healthcare acquires Suasth Hospital in INR 189 crore deal amidst insolvency process

#Taxation & Finance News#India#Maharashtra#Navi Mumbai
Last Updated : 29th Aug, 2024
Synopsis

Nishkala Healthcare has acquired Suasth Healthcare Foundation's 400-bed multi-speciality hospital in Kalamboli, Navi Mumbai, for INR 189 crore under the Insolvency and Bankruptcy Code (IBC). The acquisition is financed through a mix of debt and equity, with promoters infusing INR 73 crore in equity. The hospital spans 500,000 sq ft and includes 63 ICU beds, neonatal units, and specialised operating theatres. The Kolkata bench of the National Company Law Tribunal (NCLT) approved a INR180 crore resolution plan against INR 628 crore in creditor claims. Yes Bank and Axis Bank, major lenders, hold voting rights, with J C Flower ARC acquiring Yes Bank's stressed loans.

Nishkala Healthcare has acquired Suasth Healthcare Foundation, which operates a 400-bed multi-speciality hospital in Kalamboli, Navi Mumbai, for INR 189 crore under the Insolvency and Bankruptcy Code (IBC). The promoters of Mumbai-based Nishkala are financing the acquisition through a combination of debt and equity. The promoters-Dr. Mudabbir Ali, Dr. Ashish Kapadia, Dr. V. V. Agarwal, Dr. Devyani Wadettiwar, Dr. Pravin Shringare, Aminuddin, and Umesh Chandgude-have collectively filled approximately INR 73 crore in equity, with the remaining funds being raised through bank loans.


Spanning 500,000 sq ft, the hospital has a capacity of 400 general beds, including 63 ICU beds, 9 neonatal intensive care units, 13 operating theatres, and dedicated operation theatres for accidents and maternity. On 18 December 2023, the Kolkata bench of the National Company Law Tribunal (NCLT) approved a INR 180 crore resolution plan for Suasth Hospital, against INR 628 crore in admitted claims from creditors and others. Suasth Healthcare entered the Corporate Insolvency Resolution Process in August 2021. Lenders Yes Bank and Axis Bank, with admitted claims of INR 125 crore and INR 122 crore respectively, hold voting rights. Subsequently, J C Flower ARC acquired the stressed loans of Yes Bank, including this particular loan.

In conclusion, Nishkala Healthcare's acquisition of Suasth Hospital is a significant step in expanding its healthcare footprint. The resolution plan approved by the NCLT not only resolves Suasth Healthcare's insolvency but also ensures continued access to quality medical services for the community. With the financial backing from prominent lenders and the involvement of J C Flower ARC, Nishkala's move highlights a strong recovery path for distressed assets in the healthcare sector.

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