Digital health firm Babylon Holdings Ltd. looks close to collapse, weeks after a plan to merge with another health care company was scrapped.
(Bloomberg) — Digital health firm Babylon Holdings Ltd. looks close to collapse, weeks after a plan to merge with another health care company was scrapped.
Babylon, which was previously listed in New York, filed notice Wednesday of its intention to appoint administrators in the UK High Court, in a sign the app for visits with doctors is potentially running out of cash.
The company was founded in 2013 by entrepreneur Ali Parsa and lets private patients and large corporations speak with physicians online. Its GP at Hand app is used by about 100,000 patients in the UK to access National Health Service doctors virtually.
In October 2021, Babylon rejected a London listing in favor of going public in New York via a special purpose acquisition company. Ahead of the listing, the company was valued at $4.2 billion.
However, shares crashed and Babylon was forced to cut staff and attempted to sell parts of its business.
In June, Babylon announced it would be combining with the Swiss business MindMaze Group SA after a proposal from AlbaCore Capital LLP, its lender. The deal would have included the transfer of Babylon’s core operating subsidiaries to MindMaze.
However, earlier this month, Babylon said the proposed merger had collapsed. The company said Aug. 7 that it was exploring other options to “find the best possible outcome for its UK business,” and warned it may not have enough funds to continue operating.
A notice of intention to appoint administrators provides 10 days of protection from creditors, and means the company believes it could fall into administration.
Babylon and Latham & Watkins, its legal representative didn’t immediately respond to requests for comment. AlbaCore declined to comment.
The company earlier in August filed a Chapter 7 bankruptcy petition for a US subsidiary in Austin, Texas, and shut down its operations.
–With assistance from Jeremy Hill.
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