The Healthscope operations have $210m in cash & funding more than enough (according to the ABC link) to keep them going until a buyer or buyers are found.
I agree we have had nothing directly from HCW about the rent situation since the announcement about Healthscope going overdue in Apr, so an update on the debtor situation is needed.
If the operating entities are sold to a single buyer with the existing contracts then all the overdue rent would be paid in due course & HCW would lose no rent. Which is what HCW previously indicated, that they didn't expect to lose any rent even if Healthscope went into administration.
HCW have cross guarantees that cover all their properties so that in effected they are linked, which makes the situation interesting if multiple buyers are involved. HCW have all the power in that situation as they have a potential block on any takeover deals that enable a forced settlement of outstanding rent. Buyers aren't going to walk away from a deal worth several hundred million dollars for the sake of a few million in rent.
HCW Price at posting:
84.3¢ Sentiment: Buy Disclosure: Held
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