Alliance Medical needs £150m to avoid bankruptcy

The company's owner, Dubai International Capital, in talks with lenders over the rescue.

The UK-based diagnostic imaging services company Alliance Medical needs a cash aid of £150m within a month to avoid bankruptcy, reports the Times.

The company's owner, Dubai International Capital (DIC), is said to be in talks with lenders over the rescue, in the absence of which the business will breach its banking covenants and be taken over by its banks.

Alliance, one of Europe's biggest MRI and CT scan providers, was bought by DIC for £600m in 2007, with plans to expand it into the Middle East and Asia.

However, the Dubai government-backed investment company has been burdened with liabilities, and is already negotiating a restructuring of its massive £1.7bn debt with lenders.

The US investment bank Houlihan Lokey is advising Alliance Medical's lenders, while DIC is being advised by the Blackstone Group, according to the report.

In April, aluminium company Almatis - another firm in DIC's portfolio - filed for US bankruptcy protection.