NCLT Approves Nishkala Healthcare's INR 180 Cr Acquisition of Suasth Hospital Under IBC

The Kolkata bench of the National Company Law Tribunal (NCLT) approved an INR 180 Cr resolution plan for Suasth Hospital, which faced INR 628 Cr in claims from creditors.

Nishkala Healthcare has acquired Suasth Hospital in Navi Mumbai under the Insolvency and Bankruptcy Code (IBC) process.

Recently, the Kolkata bench of the National Company Law Tribunal (NCLT) approved an INR 180 Cr resolution plan for Suasth Hospital, which faced INR 628 Cr in claims from creditors.

Promoters of Mumbai-based Nishkala Healthcare, including Dr Mudabbir Ali, Dr Ashish Kapadia, Dr VV Agarwal, Dr Devyani Wadettiwar, Dr Pravin Shringare, Aminuddin, and Umesh Chandgude, are funding the acquisition through a combination of debt and equity.

Together, they have infused approximately INR 73 Cr in equity, with the remaining funds sourced through bank loans.

Spanning 500,000 sq ft, Suasth Hospital boasts a 400-bed capacity, including 63 ICU beds, 9 neonatal intensive care units, 13 operating theatres, and dedicated theatres for accident and emergency, maternity, among others.

Suasth Healthcare was admitted into the Corporate Insolvency Resolution Process (CIRP) in August 2021.

Creditors Yes Bank and Axis Bank, with admitted claims of INR 125 Cr and INR 122 Cr respectively, hold voting rights. JC Flower ARC subsequently acquired Yes Bank's stressed loans, including this one.

Other lenders include Srei Equipment Finance (INR 320 Cr) and Hari Vitthal Mission (INR 60.3 Cr).

Reportedly, the company's resolution professional (RP), Ravi Sethia, disclosed that Srei Equipment Finance and Hari Vitthal Mission are allegedly related parties to Suasth Healthcare Foundation.

As per Section 21 (2) of the IBC, they no longer have representation, participation, or voting rights in the committee of creditors' meetings due to their related party status.

However, Hari Vitthal Mission has challenged this stand at the National Company Law Appellate Tribunal (NCLAT), where the case is pending.

"We are dedicated to taking Suasth Healthcare Foundation to new heights, ensuring it provides top-notch healthcare services while expanding into medical education," said Dr Mudabbir Ali, chairman and founding president of Nishkala.

He added that the hospital is expected to see a substantial increase in value following the acquisition, infrastructure enhancement, and operational continuity initiatives. The company also plans to establish a medical college.

In a similar development, days back, Fortis Healthcare acquired a 31% stake in its diagnostic arm, Agilus Diagnostics, for INR 1,780 Cr, valuing the company at INR 5,700 Cr.

The stake is being sold by private equity (PE) players through the exercise of a put option, marking a significant move in Fortis’s strategy to consolidate its position in the diagnostics sector.

The acquisition involves PE investors, including NYLIM Jacob Ballas India Fund III LLC (NJBIF), International Finance Corporation (IFC), and Resurgence PE Investments Limited (formerly known as Avigo PE Investments Limited).