Babylon Health UK Arm Poised for Insolvency in Funding Crunch

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Babylon Health UK Arm Poised for Insolvency in Funding Crunch
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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.

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. 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.

A notice of intention to appoint administrators provides 10 days of protection from creditors, and means the company believes it could fall into administration.

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