BMI Healthcare, Britain’s largest private healthcare group, has signed a deal with its creditors and landlords to recapitalise the business.
Hospital Topco, the parent company of the landlords for 35 BMI Healthcare hospitals, as well as stakeholders and lenders, agreed to a deal allowing BMI’s operations and 35 hospitals to come back under common ownership.
The deal includes a capital injection of at least £58m, extending BMI’s bank facilities to 2024 and reducing annual rent by £65m, according to a report by Reuters.
BMI said contributions from the deal would fund a £250m capital investment programme.
It comes after BMI Healthcare’s majority owner Netcare revealed plans to exit the UK market following a fall in demand for treatment and property costs.
Netcare, which is South Africa’s largest private hospital operator, is currently seeking a buyer for its stake in BMI Healthcare operator General Healthcare Group.