At the end of the day, debt has less power than landlord. Debt is an internal structure within the overall capital structure of the entity.
Whilst landlord outstanding rent is regarded as 'unsecured creditor', if the landlord doesn't agree, there is no physchical hospital. No physcial hospital, no healthscope !!!
Not HCW problem that Healthcope over leveraged!!! Healthscope business operations is not the problem, the problem Healthscope private equity leveraged the deal with heaps of debt.
lol its like a residiential mortgage holder buying a property on 99% LVR, and then complaining they can't repay the bank repayments.
If Healthscope doesn't recapitalize they loose their ENTIRE investment.
So who will be the loosers: Healthscope, and the bond holders first. The bond holders can try to acquire the business, but they acquire the business at the total amount of debt used.
If that total amount of debt was excessive, then bond holders will need to do a shave of their debt.
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