"As mentioned above the business model of the Group is such that the existing operations of the Group will not generate positive cash flows in the short to medium term. In such circumstances the Group is therefore reliant upon debt and/or equity funding to maintain its current operations. In terms of debt funding market conditions are very difficult and therefore equity funding is crucial to the Group. It follows that if the Resolutions are not passed by the Shareholders the Placing and the Subscription will not proceed and in these circumstances the Directors believe it would be likely that the Group would not be able to trade as a going concern which would be likely to result in the insolvency of all or part of the Group and such an outcome would, in the Board’s opinion, result in Shareholders receiving little or no value for their current shareholdings."This is a section from the begging letter that Circle issued to its shareholders in May this year, asking for £46m. It clearly states that they are on their uppers, and that without this money the company would go bankrupt and not only that, but their assets are so few the shareholders will get no return on their previous investment. This is a company that cannot make a profit and handles its money so badly that it has no assets to speak of.
So what does the Department of Health do? It hands them NHS hospitals. First the DH hands them Hinchingbrooke, then Circle are sniffing over George Eliot, and now the Department of Health are asking Circle if they would be interested in South London Healthcare Trust.
A bankrupt company running a bankrupt hospital; a bankrupt policy.