The downward financial crisis for Healthway Medical Corp (HMC) spirals even further as, besides its controversial decision to extend huge loans, the board is now facing seven missing doctors from its clinics.
According to The Straits Times, checks with receptionists from the affected clinics revealed that the doctors are currently on medical leave and they will return on different days, but a possible reason is speculated with an announcement by HMC last weekend, stating that the board owes its senior management and doctors a total salary amount of $3.9 million for the month of February.
The lapse in payment was reportedly much earlier, according to an anonymous doctor under HMC.
The company’s financial crisis came with a decision to make a loan to two entities — one of which is based in China — leading to SGX making an unprecedented move to call for an independent review for each of these loans, saying that the issuance needs to pass a shareholder vote as per Catalist listing rules.
At the end of last year, HMC was left with a balance of $527,000 against all trade and expenses amounting to $27.7 million. Right now, the company needs $10.7 million to clear all of the employees’ payroll and debts.
HMC also added in its update that in regards to its Convertible Bond Deal made with a fund called Gateway back in January, it’s now engaging in further discussions to source for a viable alternative that “takes into account the issues raised by SGX.”
When asked about how HMC will deal with the missing doctors, it told The Straits Times that “Locums are in short supply due to the school holidays. On the other hand, our specialist and dentist clinics are relatively crowded.”
We can only feel for all the patients who couldn’t get the medical attention they needed.
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