The Economic Times daily newspaper is available online now.

    Private equity owners pull Medall Healthcare out of insolvency

    Synopsis

    The National Company Law Tribunal had admitted Medall Healthcare for insolvency proceedings on May 2 after a creditor of the company approached the court claiming it was unable to realise payments despite repeated requests to the company.

    MedallAgencies
    Medall was founded by serial entrepreneur Raju Venkatraman.
    New Delhi: Private equity (PE) owners have pulled medical diagnostics chain Medall Healthcare out of insolvency proceedings after they settled a dispute with one of the company's creditors over non-payment of dues of ₹3 crore, according to sources in the know.

    The Chennai-based diagnostics chain, which ranks amongst the largest in southern India, is majority-owned by private equity firms Peepul Capital and Siguler Guff. Homegrown Peepul Capital manages $700 million in investments. US-based Siguler Guff has $15 billion under management.

    The National Company Law Tribunal had admitted Medall Healthcare for insolvency proceedings on May 2 after a creditor of the company approached the court claiming it was unable to realise payments despite repeated requests to the company.

    "These are routine matters. The outstanding pertained to one of our franchisees. The case has been withdrawn," a Medall executive told ET when contacted.

    The diagnostics chain operates 185 labs and was an acquisition target as recently as May 2019 for China's Fosun Healthcare, which had valued the company at ₹2,000 crore at the time. The acquisition did not take place. Warburg Pincus had also evaluated an investment in the company in the past.

    NCLT had appointed Venkatraman Subramanian as the interim resolution professional of the company to administer its insolvency proceedings. However, he will not be taking charge of the company's affairs after the settlement.

    Medall was founded by serial entrepreneur Raju Venkatraman.

    Unlike other pathology chains that offer only blood-based sample testing, Medall derives a substantial portion of its revenues from radiology services such as scans and MRI's.



    (You can now subscribe to our Economic Times WhatsApp channel)
    (Catch all the Business News, Breaking News Budget 2024 News, Budget 2024 Live Coverage, Events and Latest News Updates on The Economic Times.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    ...more

    (You can now subscribe to our Economic Times WhatsApp channel)
    (Catch all the Business News, Breaking News Budget 2024 News, Budget 2024 Live Coverage, Events and Latest News Updates on The Economic Times.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    ...more
    The Economic Times

    Stories you might be interested in