Fortis due diligence unearths more skeletons: report

The due diligence of Fortis Healthcare Ltd has unearthed unpaid vendors’ bills of Rs450 crore, a Rs503 crore penalty on its subsidiary Fortis Escorts Heart Institute and undisclosed land-related issues at three of its hospitals, Mint reported today.

The report said some of Fortis’s creditors are mulling recovering their dues of Rs2,500 crore by taking the troubled company to the bankruptcy court.
The due diligence by the four bidders for the beleaguered hospital chain is being conducted by Hero Enterprise Investment Office-Burman Family Office (Dabur) consortium; IHH Healthcare Bhd; Radiant Life Care backed by US private equity firm KKR; and the Manipal-TPG consortium. 
The bidders have till 10 June to finish the due diligence and make fresh offers by 14 June. 
The winner will have to invest at least Rs1,500 crore in the company in exchange for a preferential allotment, apart from funding the acquisition. 
The outcome of the due diligence could cast a shadow on Fortis’s valuation, which was pegged earlier by TPG-Manipal at Rs180 per share.