Makati Med plans P160-M stock rights offering

Makati Medical Center plans to raise P160 million through a stock rights offering to its shareholders for the expansion and refurbishment of existing facilities.

Makati Med intends to file this month its registration statement with the Securities and Exchange Commission. Proceeds from the offering will be used for the expansion of its operations to better serve the needs of clients and attract more patients.

The financially ailing hospital is faced with liquidity problems and is in talks with creditors to restructure about P1.2 billion in debts.

ATR-Kim Eng has been appointed as financial adviser for the plan to restructure debts and raise new funds.

Makati Med has been incurring losses for the past three years allegedly due to mismanagement.

Last July, the hospital brought in some new board members, including telecommunications czar Manuel V. Pangilinan and banker Francisco Dizon to help it stay afloat.