While lenders are listening, not everyone is convinced the asset sales plan will work. It is understood at least one lender has been testing appetite for its exposure in recent weeks.
GenesisCare had about $2.3 billion in secured borrowings as June 30 last year – according to its most recently filed accounts with the corporate regulator – including $2.2 billion in bank loans due to mature in 2024, 2025 and 2027.
Funds raised from the asset sales would be used to inject back into the business, as cancer care volumes in Australia and the United States recover following the COVID-19 pandemic.
In hindsight, lenders say the big drag on the company has been GenesisCare’s 21st Century Oncology, a major US integrated cancer care provider, which it acquired in a debt-fuelled deal in May 2020.
While volumes fell during the COVID-19 pandemic, sources said GenesisCare was also struggling with billings in the US, including recovering funds from insurers.