JP Morgan is likely to buy the 1187 crore stressed SevenHills Healthcare in a bid to gain control of the investee company, which operates a 2000 bed hospital in Mumbai and Visakhapatnam.
JP Morgan is discussing debt mop-up from lenders led by Axis Bank so that it may push for strategic changes in business, and prepare the hospital for an eventual sale.
However, the Axis Bank-led consortium of lenders has moved court seeking repayment of their dues. With this, JP Morgan's overall exposure to the hospital may rise to over 2010 crore. The private equity arm of the biggest bank in the United States had initially put in 4824 crore for a 35 percent stake in SevenHills Healthcare in 2008 and topped up its investment subsequently.