The GZO Hospital Wetzikon is currently facing financial difficulties and is considering two options: renegotiating with creditors or declaring bankruptcy.
The hospital's creditor group believes that even in the event of bankruptcy, the hospital would continue to operate under new ownership. However, the hospital's assets, including a partially completed building and prime land holdings, are being re-evaluated due to the challenges posed by thin profit margins in the Swiss healthcare sector.
The creditor group acknowledges the difficulty of achieving the necessary majority for a proposed debt restructuring plan, which involves a significant reduction in debt for creditors.
The bondholders of GZO Hospital Wetzikon strongly oppose the proposed debt reduction, which would require them to give up a large portion of their claims. They have approved amendments to the bond terms to extend the maturity of the bond instead.
The GZO Creditor Group criticizes the idea that the hospital might close if bankruptcy occurs, arguing that the hospital's profitability should be the basis for negotiations. However, the rejection of the reorganization plan by bondholders complicates the situation.
The twelve shareholder municipalities are evaluating the capital needs of GZO Hospital Wetzikon and considering an equity injection of 45 to 55 million francs. However, they are proceeding with caution and conducting a comprehensive analysis before making any commitments.
They have made it clear that any funds contributed must be used for financing payments related to the debt reduction and ensuring the hospital's continued operation. They have also emphasized that no taxpayer money will be used to further reduce the debt in favor of creditors.
The GZO Creditor Group is concerned about the feasibility of reaching an agreement with creditors, given the rejection of the proposed reorganization plan. They have warned the municipalities that obtaining the necessary majority support for the debt restructuring agreement is unlikely, which could result in a costly and futile process of seeking taxpayer approval for additional funding.
The creditor group has urged the municipalities to reconsider their approach and work collaboratively to address the hospital's financial challenges.
The future of GZO Hospital Wetzikon and its ability to serve the community will depend on the interplay between bondholders, municipalities, and the creditor group. The outcome of the negotiations will not only affect the hospital's financial health but also have broader implications for healthcare funding and management in Switzerland.