If you’ve been following recent news about Healthscope, you may be curious to know how the company’s potential transformation from private equity ownership to a not-for-profit (NFP) entity could be legally possible.
This is my attempt to explain it in simple terms.
There are three related structural factors that could make it happen.
1. Insolvency created the conditions for structural change
Healthscope carries significant debt. When its private equity owners withdrew support, the company was placed into the hands of receivers appointed by Healthscope’s lenders.
Why does this matter? Receivership allows lenders (via the receiver) to choose a restructuring model that they believe will maximise value, as well as…