This will be something like a 5% position in a group like Bain's distressed debt/special situations fund.
The Healthscope assets would be a heap of PPE, systems, employees etc. HCW owns the land and buildings, not all the equipment inside it.
If HCW said "see you later guys" the cost for a new operator to come in would be very large and the operational challenges even bigger. Setting up a new hospital operation from scratch would not be quick or easy.
Therefore, any new operator would need a large cash/rent incentive to offset these costs.
The bond holders know this and so in all likelihood, there will be an agreement reached but rent will be much lower.
HCW Price at posting:
89.0¢ Sentiment: Sell Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)