Reliance and Capri Global will acquire SevenHills Hospital after an eight-year insolvency battle
The 1,500-bed facility will convert to a non-profit under the Reliance Foundation Hospital Trust
Secured creditors will recover ₹449 crore, representing roughly 40% of their admitted claims
Reliance, Capri Global Steps In to Save 'Bankrupt' SevenHills Hospital
The partnership will convert the facility into a not-for-profit hospital managed by Reliance Foundation Hospital Trust
Reliance, Capri Global Steps In to Save 'Bankrupt' SevenHills Hospital SevenHills Hospital
Summary
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Oil-to-Telecom giant Reliance Industries and NBFC Capri Global Holdings, are set to acquire Mumbai’s Sevenhills Hospital collaboratively, ET reported. This move puts an end to an eight-year insolvency deadlock for the 1,500-bed hospital.
The National Company Law Tribunal (NCLT) on Wednesday reportedly approved Capri Global’s resolution plan that includes equity support from the Reliance Group to implement the plan.
The Resolution Plan
Under the approved resolution plan, secured creditors are set to recover about ₹449 crore, or roughly 40% of their admitted claims. The Municipal Corporation of Greater Mumbai (MCGM) will reportedly receive a settlement of around ₹223.4 crore, along with an additional payment of about ₹205 crore. Employees and other operational creditors will be paid ₹6 crore.
Reliance Group and Capri Global Holdings have proposed a multi-step scheme of arrangement under which Reliance will extend equity support, and the hospital will be converted into a not-for-profit entity.
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Capri Global’s resolution plan was approved unanimously by lenders primarily because it was the only bid to secure a no-objection certificate from MCGM.
SevenHills Healthcare Insolvency Saga
SevenHills Healthcare entered insolvency in March 2018 after a severe cash crunch led to loan defaults of more than ₹737 crore, largely triggered by a dispute with the Municipal Corporation of Greater Mumbai (MCGM).
Prolonged legal battles over land lease terms significantly worsened the situation, stretching the resolution process to nearly a decade.
Axis Bank subsequently initiated the Corporate Insolvency Resolution Process (CIRP) by approaching the National Company Law Tribunal (NCLT) in Hyderabad, after the hospital failed to service its borrowings. At the time, total liabilities were reported to be in excess of ₹700 crore.
The hospital’s Mumbai facility remained entangled in legal and lease-related disputes with MCGM over unpaid rent and land-use conditions, repeatedly derailing earlier revival efforts. One such attempt in 2019, led by New Medical Centre (NMC), was ultimately struck down by the Supreme Court, further delaying resolution.
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