CVC’s I-Med faces debt restructure

According to the Sydney Morning Herald, if I-Med's debt is restructured, the majority of its bank debt would be converted into equity. The report adds that an estimated A$340 million of I-Med's debt is owed to subordinated lenders.

I-Med claims to be Australia's largest private diagnostic imaging network, operating more than 200 diagnostic imaging clinics. CVC acquired the company in December 2006, in conjunction with its A$2.7 billion buyout of DCA Group, which operated Australia's largest diagnostic imaging clinic network, according to CVC. One year later, DCA sold its aged-care, resulting in the company only operating its diagnostic imaging business. The company was renamed I-Med Holdings following that procedure.

The Herald notes that the restructure parallels an event in 2009, when CVC converted a large portion of its A$800 million debt in hospitality and management asset Stella Group into equity. In May of last year, Stella Group engaged in an all-share merger with Jetset Travelworld to create a 50/50 JV business, giving 50% of the new group to CVC, lead debtholder UBS and Stella staff and the remaining to Jetset.

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• Topics
• Australasia
• Healthcare
• CVC Capital Partners