Unless there is a turnaround, other hospitals will follow Sun. And we'll also see a lack of investment and maintenance of the assets that attract people to private insurance. Mayne Nickless's new chief, Mr Peter Smedley, refused to commit the company to staying in health care. Industry observers will be watching today's financial report by a rival, Ramsay Health Care. Mr Craig Thomson, assistant secretary of the Health Research Employees' Association, said a meeting of Sun Healthcare creditors, convened on Monday by the administrator, was told the company's situation would be clearer by the next meeting, in 21 days.
Liquidation is a different matter.
Mr Thomson said unions had been assured that workers' entitlements would be second in the queue to the principal creditor, the bank ABN Amro, in the event of the company being liquidated. Mr Skinner, who is joint receiver with fellow Deloittes' partner, Mr Chris Campbell, said Sun Healthcare directors decided they could not continue without an administrator and appointed Ferrier Hodgson on Monday last week. ABN Amro appointed Deloittes the following day. Sun Healthcare's managing director, Mr Chet Bradeen, did not return telephone calls made to him from the Herald . This material is subject to copyright and any unauthorised use, copying or mirroring is prohibited.