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Hedge funds weigh up longer-term ownership of collapsed Healthscope

Major international hedge funds that now control large parts of Healthscope’s $1.6 billion debt are not ruling out injecting more money into the failed private health hospital as longer-term part-owners if they cannot find a buyer for the business, but they face resistance from a big landlord.

London’s Polus Capital and Los Angeles-headquartered Canyon Partners own about 30 per cent of the debt owed by the country’s second-largest private healthcare operator, which collapsed into administration earlier this month, leaving the long-term future of its 37 hospitals uncertain.

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Michael Smith is the health editor for The Australian Financial Review. He is based in Sydney. Connect with Michael on Twitter. Email Michael at michael.smith@afr.com
Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS. Connect with Michael on Twitter. Email Michael at michael.read@afr.com

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    Original URL: https://www.afr.com/companies/healthcare-and-fitness/hedge-funds-weight-up-longer-term-ownership-of-collapsed-healthscope-20250528-p5m2tf