A restructuring plan is being discussed for the future of the Mount Carmel Medical Group and Aut Even Hospital following reports of financial difficulties this week.
The Mount Carmel Medical Group is facing difficulties after it was revealed that the private hospital group that owns Aut Even Hospital in Kilkenny and others has defaulted on its bank debt.
The group is understood to have €84m in bank loans from AIB and KBC and it made losses of €48.6m during the year ended December 2008, it is now preparing its 2009 accounts.
A life insurance policy held by the chief shareholder in the company, Gerald Conlan, has been assigned to the banks.
The group is dependent on its banks to continue to provide loans and working capital facilities. The account writers claim that the main driver of the large losses was property and goodwill writedowns of €40m.
The company has been unable to meet capital repayments on its bank debt that fell due from December 31, 2009, and a result these bank facilities have since expired.
Directors of the group are currently in discussions with the banks in a bid to attempt to restructure the group and secure finance for ongoing work. However, it has been reported that there are no guarantees that these talks will be successful.
