Australia-based healthcare provider is in talks about roughly $200 million in new financing to see it through bankruptcy
GenesisCare, a provider of cancer-care services backed by KKR, is preparing to file for bankruptcy within days, according to people familiar with the matter.
The Australia-based company, which also operates in the U.S. and Europe, is in talks to receive roughly $200 million in new financing to see it through bankruptcy, the people said. GenesisCare is advised by lawyers from Kirkland & Ellis. China Resources Group is also an owner of the company.
Representatives…
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GenesisCare, a provider of cancer-care services backed by
KKR,
is preparing to file for bankruptcy within days, according to people familiar with the matter.
The Australia-based company, which also operates in the U.S. and Europe, is in talks to receive roughly $200 million in new financing to see it through bankruptcy, the people said. GenesisCare is advised by lawyers from Kirkland & Ellis. China Resources Group is also an owner of the company.
Representatives for GenesisCare, Kirkland and KKR didn’t respond to inquiries seeking comment. China Resources Group couldn’t be reached.
GenesisCare has been struggling under a debt load in part stemming from its $1.5 billion acquisition of 21st Century Oncology in 2020. Healthcare service provider 21st Century Oncology filed for bankruptcy in 2017, blaming changes in insurance reimbursement practices in addition to government penalties and settlements. It emerged from chapter 11 in 2019.
Since October, S&P Global has cut GenesisCare’s credit ratings twice, each time pushing it one notch deeper into distressed territory, raising expectations that the company would default.
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The ratings company cited rising borrowing costs, sluggish recovery in patient volumes and a slower recovery in the U.S. for the downgrades. GenesisCare had $154 million in cash as of September, but its liquidity has been getting worse since then, according to S&P Global.
Private-equity firms have been facing increasing challenges in refinancing portfolio companies’ debts as interest rates rise and financing has become more difficult to access in recent months.
Envision Healthcare, another KKR-backed healthcare provider, filed for chapter 11 earlier this month. The private-equity firm has written off its $3.5 billion investment in the physician-staffing company it acquired in 2018, The Wall Street Journal has reported.
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Write to Alexander Gladstone at [email protected] and Soma Biswas at [email protected]