Fortis Healthcare Says It Expects Repayment Of Inter-Corporate Loans By June
Fortis Healthcare Ltd. expects the Singh brothers to repay outstanding inter-corporate deposits worth about Rs 500 crore by June even as India's second-largest hospital chain is in talks with potential strategic investors.
“We are working on a repayment plan that's been committed to us by end of the first quarter,” Chief Executive Officer Bhavdeep Singh told BloombergQuint in an interview. “At this point, we have no reason to think that it won't come in.”
Fortis CEO said the company is also in talks with potential investors.
By virtue of what we hear, we are a desirable asset, there is tremendous amount of interest in Fortis and people want to be affiliated and partner with us.Bhavdeep Singh, CEO, Fortis Healthcare
Also Read: Fortis Healthcare's Auditor Raises Three Red Flags
The company filed its earnings for the second and third quarters of the 2017-18 after a delay. And it came with the auditor Deloitte, Haskins & Sells LLP's red flags over matters relating to the ongoing investigations, to loans given and recoverability of certain vendor advances.
The erstwhile promoters Malvinder Singh and Shividner Singh face allegations of siphoning off funds from the hospital chain and their financial services subsidiary Religare Enterprises Ltd. That comes even as the Delhi High Court ordered to attach their unencumbered assets to execute the Rs 3,500-crore arbitral award Daiichi Sankyo won in Singapore against them for hiding troubles of erstwhile Ranbaxy Laboratory Ltd. at the time of sale to the Japanese drugmaker.
Also Read: Fortis Healthcare Reports Weak Second And Third Quarter Earnings
The hospital company also plans to buy back assets from Religare Health Trust, for Rs 4,650 crore, funded via mix of debt and equity. That will help Fortis Healthcare save Rs 270 crore on service fees and Rs 75 crore on interest costs.
The RHT transaction certainly makes Fortis Healthcare an even more appealing buyout target, the CEO said. “In the event that the transaction doesn't take place, we certainly believe we can raise funding for it because the merit for it is strong.”
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