MGM Healthcare promoter acquires Vizag's SevenHills Hospital under IBC

Mumbai: MK Rajagopalan, the promoter of Chennai-based MGM Healthcare, has acquired the 300-bed SevenHills Hospital in Visakhapatnam under the Insolvency and Bankruptcy Code (IBC) process.

The Amravati bench at Mangalagiri of the National Company Law Tribunal approved a ₹171 crore resolution plan against ₹1,361.89 crore admitted claims from creditors, employees, and others. The secured creditors admitted claim was ₹1,273 crore.

The ₹171-crore resolution plan includes fresh infusion of ₹18 crore towards capital expenditure and working capital requirements of the acquired hospital.

Along with Rajagopalan, two other parties, the Consortium of Mohan Reddy and Capri Gold Holdings Pvt Ltd had submitted resolution plans. Rajagopalan's plan was approved by a 100 per cent majority of the committee of creditors (CoC) at the 47th meeting. SevenHills Hospital in Visakhapatnam has recorded a revenue of over ₹100 crore in FY24.

MGM Healthcare Group has achieved a landmark of over 1,000-bed capacity within the short span of five years with this acquisition.

"MGM Healthcare's strategic acquisition of SevenHills hospital marks our first foray outside Chennai," said Dr Prashanth Rajagopalan, director, MGM Healthcare

"This acquisition aligns with MGM Healthcare's commitment to thoughtful geographical expansion," said the promoter.

Founded in 1988, SevenHills is one of the oldest multi-specialty hospitals in Visakhapatnam located in the heart of the city at Rockdale Layout on Waltair Main Road.