RHT Health Trust seeks to suspend EGM for winding up process

The Indian Supreme Court said the $895.55m disposal of RHT’s portfolio, which is part of the winding up, violated its orders.

RHT Health Trust’s trustee-manager is seeking to adjourn an upcoming extraordinary general meeting (EGM) on 3 December that will have the shareholders approve the company’s voluntary winding up, according to an announcement.

“It would be in the interests of Unitholders to consider the adjournment of the EGM for the Voluntary Winding Up until such date and time when the Trustee-Manager is able to make an informed decision as to whether and how the proposed Voluntary Winding Up may be proceeded with,” the trust said. RHT’s legal counsel then advised the trust not to proceed with the voluntary winding up.

On 15 November, The Supreme Court of India has issued a judgement stating some transactions, including the disposal of RHT’s asset portfolio to Fortis on 15 January, are a wilful disobedience of the court’s orders and that Fortis’ founders are guilty of contempt of court.

Previously, as part of its winding up, RHT agreed to sell its 12 clinical establishments, 4 greenfield clinical establishments, and 2 operating hospitals in India for $895.55m.

The disposal was approved by independent unitholders at the EGM of RHT on 26 September 2018, with Fortis and its associates having abstained from voting on the ordinary resolution relating to the disposal.

RHT Health Trust also suspended share trading in light of the announcements.