(Reuters) – Dubai International Capital (DIC) is in talks with lenders over an urgent cash injection for Alliance Medical to stop the business breaching its banking covenants, the Times reported in its Tuesday edition.
DIC, an investment unit of conglomerate Dubai Holding, is holding negotiations with its lending syndicate to inject up to 150 million pounds ($222.5 million) into the MRI and CT scan services provider, the paper said.
The private equity group has until a deadline next month to stump up the cash to stop Alliance Medical’s banks potentially taking control of the business, which is at risk of breaching its banking covenants, the paper said.
U.S investment bank Houlihan Lokey is advising Alliance Medical’s lenders, while DIC is being advised by Blackstone Group, according to the Times.
DIC bought Alliance Medical for $1.25 billion on 2007, with plans to expand one of Europe’s largest MRI and CT scan services provider into the Middle East and Asia.
But the wealth fund has been burdened by debt woes and has $1.25 billion loan maturing in June, according to Reuters data, and $2.6 billion in debt overall.
Alliance Medical could not immediately be reached for comment.